Megha-Saini Saaoo
Megha-Saini Saaoo
ABSTRACT
The objective of current study was to identify the factors that discriminate among the various groups of consumers
which show different level of influence of television advertisement on purchasing decisions and to assess whether
consumers’ perception towards television advertisements’ influence on buying decisions differs. 210 respondents
from Haryana were interviewed using structured questionnaire. Statistical tools like factor analysis and
discriminant analysis were used. Application of factor analysis leads to the formation of three dimensions of
advertisements’ influence, namely enhance consciousness & believability, attitudinal influence and adverse
influence, which served as predictors along with demographic variables in present study. Regarding the extent of
advertisements’ influence, respondents were grouped into three categories. Further multiple discriminant analysis
was applied to find out association among predictors and advertisements’ influence on buying decisions. From the
study it was found that enhance consciousness & believability, and attitudinal influence of advertisement are the
prominent dimensions which significantly discriminated groups of respondents formed on the basis on their buying
intention for advertised products. Though adverse influence of T.V. advertisements discriminated the groups of
consumers yet not as strong as the earlier ones. Results obtained from this study help to determine the content of the
advertisement which can influence buying decision of consumers. The advertisements which enhance consumers’
consciousness & believability regarding product and also produce significant influence on consumers’ attitude will
be able to convert potential buyers into actual ones.
INTRODUCTION
The term advertising originated from Latin word „adverto‟ which means to turn around. Advertising, thus, devotes the
means employed to draw attention to any object or purpose (Ramaswamy & Namakumari, 2004). More narrowly it can be
stated as „any human communication intended to persuade or influence buyers in their purchase decisions (Cheng, 1996). It
involves the activities of informing, persuading, reminding and reinforcing the target audience (Kotler & Keller, 2006).
Thus, the basic purpose of an advertising communication is to put customers in a more receptive frame of mind so that they
are inclined to purchase a product (Dubey & Patel, 2004) and benefiting the producer, educating the consumers and
supplementing the salesmen (Kapoor, 2004).
Advertising authenticate and standardized the product in consumer‟s mind, communicates the power and size of
organization, dramatize the product, creates an image of product, incites short term sales and positively affects the sales and
profits (Kotler & Keller, 2006, Shah and D‟Souza, 2009), contributes in building successful brands (Kapoor, 2004),
introducing a new product in the market (Kotwal, Gupta and Devi, 2008) and provide information (Vakratsas & Ambler,
1999, Coulter et. al., 2001). Advertising is most cost-effective and best known form of promotion and valuable tool for
building brand equity (Kotler & Keller, 2006, Belch, Belch and Purani, 2010); and most visible part of marketing mix
(Coulter et. al.. 2001) and has impact on consumption and lifestyle of consumer (Pollay and Mittal, 1993), culture (Ritson
and Elliott, 1999; Pollay, 1986), society (Pollay and Mittal, 1993; Ritson and Elliott, 1999; Pollay, 1986), prices (Banerjee
and Bandyopadhyay, 2003), buying behaviour of child, family spending (Katke, 2007) and economy (Pollay, 1986,
Hennion, Meadel and Bowker, 1989).
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Why TV Advertising
Television advertising is the best source of information for 42 per cent Indians making it the best media ever invented
(Shah and D‟souza, 2009). Reactions to TV advertisements seem to be stronger than the reaction to print advertisements
(Corliss, 1999). With the benefit of sight and sound, colour and music, action and special effect, television advertising can
be the most powerful advertising media of all kind (O‟Guinn, Allen and Semenik,, 2002). Television combines motion,
sound and special visual effects through which products can be well demonstrated and described on television (Etzel et al.,
2008). Economists believe that increased competition leads to lower prices, thereby benefiting consumers and the economy
as a whole (Kanetkar, Charls and Doyle, 1992). Customers with less time to reach and compare also tend to be more reliant
on advertising for decision making (Dubey & Patel, 2004). Kotler and Keller (2006) emphasized that properly designed and
executed TV advertisements can improve brand equity and affect sales and profit. To be successful in global stage, the
marketers must understand differences between countries and their culture (Lindstrom, 2004) and TV advertisement plays
an important role in it.
In India, television started functioning as a state owned medium in 1959 and the first commercial hits the screen of Indian
television in 1978 in black and white to 1982, afterwards first color commercial of Bombay dyeing hits television on
Doordarshan and to date T.V. advertising has become interactive (Shah and D‟Souza, 2009). Almost every child and
teenager in India watch family programmes along with other members (Dubey & Patel, 2004). As a result, most advertisers
carefully purchase time for their commercials during programmes watched by a particular target audience they consider
most likely to buy ( Kavitha, 2006).
Given the increasing influence of T.V. advertisement on consumer purchase behaviour, present research attempts to isolate
those variables which play a key role to identify the consumers having favourable inclination/predisposition towards the
advertisement and perceives higher influence of T.V. advertisement on purchasing. Therefore if marketers could recognize
perception of consumers regarding T.V. advertisement influence on buying decision, then marketers could promote their
products and services accordingly.
LITERATURE REVIEW
.Consumer behaviour are impacted by environmental factors like culture, subculture, social class, reference groups (Belch,
Belch and Purani, 2010), opinion leaders and family (Jethwaney and Jain, 2009). At times consumers themselves are not
aware of what motivates their behaviour (Shah and D‟Souza, 2009). For them, advertisement is an important source of
information (Coulter et. al., 2001) and after getting bombarded by advertisements, consumers develop favorable and
unfavorable attitudes towards advertisements which influence their brand attitude and purchase intensions (Shah and
D‟Souza, 2009). Their perception towards advertisements also affects advertising effectiveness (Anderson, Engledow and
Becker, 1978). Shah and D‟Souza, (2009) argue that perceiving the message by consumer depends on receiver‟s skills,
attitude, profile, knowledge etc. and hence consumer perceived influential aspects of advertising has been a mystery.
As Pollay and Mittal, (1993) puts out “Everyone seems to hold an opinion about various aspects of advertising” (Italics in
original). Coulter et. al. (2001) also communicated the importance of consumer‟s perceived influential aspects. “Attitude
towards the institution of advertising is a function of a consumer’s perceptions of various aspects of advertising” (Italics in
original). Consumers are broadly affected by various aspects of advertising as it can have both positive and negative impact
on them (Coulter et. al., 2001).
Till date only social and economic effects of advertising have been the matter of research (Petrovici, Marinova, Marinova
and Lee, 2007; Anderson, Engledow and Becker, 1978), other aspects of advertising and consumers‟ belief and their
importance in consumer behaviour are yet to be researched (Pollay and Mittal, 1993). Pollay and Mittal (1993) argued that
any models which do not depicts the cultural effects, personal effects of advertising along with social effect will be
incomplete. Petrovici et. al. (2007) broaden the horizons of influential aspects of advertising by including advertising
aspects relating to information, social value, pleasure, benefits to economy, undesirableness, values and misleads. Pollay
(1986) showed concerned pertaining to our lack of knowledge about various aspects of advertising which undoubtedly have
an influence on consumers.
Though there are studies regarding the impact of advertising or effects in countries other than India (Pollay and Mittal,
1993; Petrovici and Marinov, 2007; Andrews, 1989; Coulter et. al., 2001), at the same time there is dearth of studies in
international literature about the influential aspects of advertising in India with some exceptions (Durvasula et. al., 1993).
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Consumer‟s perception about advertising effects in one country/culture cannot be generalized since these aspects or effects
vary with culture/countries (Durvasula et. al., 1993). On the other hand Yang (2010) concluded that effects/dimensions of
advertising as were given by Pollay and Mittal (1993) were almost similar for Taiwan and further cited that these can be
generalized to other Asian countries including China, Hong Kong and Korea etc., except for India. However, Andrews et.
al. (1991) concluded that students in India consider social and economic impact of advertising as very important.
Moreover, the long debated standardization and adoption strategy issue in advertising (Agarwal, 1995) depicts that
standardization is not only complex but also considered as western phenomenon (Duncan and Ramaprasad, 1995). Cultural
differences shrink the use of standardization (Duncan and Ramaprasad, 1995; Whitelock and Rey, 1998; Green et. al.,
1975) which makes advertisers to adopt different practices in different countries (Koudelova and Whitelock, 2001;
Weinberger and Spotts, 1989a, 1989b; Albers-Millers and Gelb, 1996) and when advertising is adapted, it is bound to
produce different effects or influential aspects. Rather Green et. al. (1975) found that appeals used in US should not be used
in France, Brazil and India. India being different culturally when compared to western countries always invites individual
treatment for influential aspects, as part of cross culture difference (Koudelova and Whitelock, 2001).
Advertisement plays a vital role in influencing the purchase decision for a product (Kotwal, Gupta and Devi, 2008).
Ravichandran & Narayanarajan, (2004) insisted that advertisements must bring out superiority of the product over other
brands besides being attractive, influencing and informative. There is a direct link between attitude towards advertisement
and attitude towards product. Customers rely on advertisements till they get the product. Advertisements are double edged
weapon due to the fact that advertisements are bound to create positive attitude if claims of advertisements correspond with
the features of a product and vice versa (Alexander, 2005). It has become the dominant marketing variable because all
competing brands are essentially identical with respect to price, distribution and product attributes (Chadha & Chhina,
2004). Television advertising has enormous ability to attract the attention of the audience. Because of the predisposition
towards television, many people tend to trust products that are advertised on television and consider those commercials as
reliable source of product information (Shah & D‟Souza, 2009). There are evidences (Kotwal, Gupta and Devi, 2008;
Hennion, Meadel and Bowker, 1989; Shimp, 1981; Batra and Ray, 1986) which show that multiple exposures to advertising
influence the purchase and selection of products during shopping. Rendering to the importance of advertising in purchase,
Zufryden (1987) developed a model to measure the relationship between advertisements and purchase behaviour patterns.
Along with advertising other factors like loyalty, price also plays important role in determining purchase behaviour (Tellis,
1988).
Previous research has helped to identify consumer segments on the basis of their relative behavioural aspects towards T.V.
advertisements influence the buying behaviour of consumers. Response of consumers having different demographics and
psychographic characteristics possess different predisposition regarding influence of advertisement on buying decisions.
Thus additional research is necessary to assist marketers in analyzing consumer willingness to purchase advertised product
or service by utilizing demographic, Socio-economic, personality variables as well as attitude towards the advertisement
and the product itself.
(i) To discriminate among the groups of consumers as per their perception regarding influence of T.V.
advertisement on buying decision,
(ii) to study whether significant differences exist among the groups, in terms of predictor variables undertaken,
(iii) to suggest marketers appropriate strategy regarding content of T.V. advertisement that influence consumers
buying decision significantly.
H1: Consumers‟ demographics significantly discriminate the groups of consumers perceiving low and high influence of
T.V. advertisement on buying decisions.
H2: Psychographic aspects of consumer perception for T.V. advertisements significantly discriminate the groups of
consumers.
H3: Attitudinal aspects of consumer perception for T.V. advertisements significantly discriminate the groups of consumers.
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RESEARCH METHODOLOGY
Haryana is divided into four administrative divisions by Government of Haryana. Strict statistical sampling cannot be
applied in selecting the respondents here as we did not had exhausted list of population. In such cases, Cadler, Phillips and
Tybout (1981) advocated the use of convenience sampling keeping in mind the important dimensions of the population.
The four administrative divisions of Haryana acted as sub groups or strata and from these strata respondents were selected
using convenience sampling making the overall sampling criteria as stratified convenience sampling. For proper
representation, 300 questionnaires were circulated in form of schedule. In total 210 respondents were found fit after the
survey and were further analyzed.
Questionnaire formulation
A pool of 40 simple understandable statements (Kassarjian, 1971) relating to how consumers can possibly perceive
advertising communication so that their response on the same could be measured, were collected in the initial stage
(Churchill, 1979) of construct formulation. Keeping in mind the well established and non controversial importance of
content of the statements (Strauss and Smith, 2009) and its relevance as major measure of construct validity (Messick,
1955), experience survey of expert professional (Messick, 1955) was consulted for generation of pool of items. Judgmental
sample of professors from Guru Jambheshwar University of Science and Technology, dealing in advertising and
communication were included in experience surveys as experts, as is advocated by Churchill, (1979). The statements were
further refined to 32 statements after first round of discussion between authors. These 32 statements were again brain
stormed with experience survey and 19 statements were finalized, out of which 6 statements were relating to measure the
perceived influence of T.V. advertisement on purchasing, used as dependent variables in study. Sensitive questions like
income and demographics were kept in the second part of questionnaire (Malhotra, 2008).
Female 105 50
Total 210 100.0
Up to 40 79 37.6
41-50 95 45.2
Age
Above 50 36 17.1
Total 210 100.0
Up to 10th 56 26.7
Education
Up To 12th 27 12.7
Graduation 85 40.4
P.G. 42 20.2
Total 210 100.0
Up to 1lakh 63 30.0
Annum
Income
Professional 13 6.0
Service 83 39.8
Housewife 17 8.1
Agriculture 46 21.8
Total 210 100.0
(Source: Primary data)
Statistical technique
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Demographic profile of respondents was analyzed using frequency distribution. Total sample size is 210. Table 1 shows the
demographic profile of the respondents. Age, gender, educational qualification, occupation and monthly household income
constitute the demographic profile of the respondents. Most practiced index of internal consistency in social sciences
researches on multi-item measures, the cronbach‟s alpha (Schmitt, 1996) was used to check reliability in present study. The
cronbach‟s alpha statistic for 19 statements was 0.751 showing that scale is reliable. Besides these techniques, mean,
variance, standard deviation was calculated and used at various stages of data analysis.
Factor Analysis
To bring down the statements to manageable level of dimensions, factor analysis using principal components method of
factor extraction with varimax rotation was used. The value of KMO measure of sampling adequacy comes out to be 0.845
and Bartlett‟s test of sphericity was found to be significant, depicting that factor analysis can be applied on data.
The basis for factors extraction was kept as the eigen value of 1.0. Principal component analysis extracted 4 factors
explaining approximately 53 per cent of variance. In social sciences studies 50 per cent of variance explained is useful and
can be taken ahead (Zenk and Eckhardt, 1970). Four factors extracted after application of factor analysis were Influence of
T.V. advertisements on purchasing, attitudinal influence of T.V. advertisement, T.V. advertisement enhance consciousness
and believability, Adverse influence of T.V. advertisement
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Predictor Variables
The focus of the current study was to identify whether certain demographics, psychographic and attitudinal variables could
discriminate between consumers on the basis of their perception regarding influence of T.V. advertisement on buying
decision. In the present study two demographic variables namely education and income per annum of consumers, and three
psychographic variables namely enhance consciousness and believability, attitudinal influence and adverse influence of
T.V. advertisements was taken as predictors to discriminate the three groups of consumers formed on the basis of their
perception regarding influence of T.V. advertisement on buying decision.
Discriminant Analysis
Discriminant analysis generates discriminant functions on the basis of observations of already known group membership to
discriminate these observations into the specified groups in terms of predictor variables (Glen, 2011). Discriminant analysis
enables the researcher to derive the linear combinations of two or more predictor variables that discriminates between the
priori defined categories of criterion variable (Malhotra, 2008). Discriminant analysis was utilized because it is a highly
useful tool when aim is to understand the differences in buying behaviour of various groups of buyers. Consequently
multiple discriminant analysis with direct method for entering predictors was used.
To ensure validity of discriminant analysis and how well the predictors classified cases and discriminate between the three
groups of cases, leave one out cross validation method was utilized to validate the discriminant functions obtained. Hit
Ratio, which means percentage of cases correctly classified, was determined. Classification accuracy achieved by
discriminant analysis should be at least 25 percentage greater than obtained by chance in order to make discriminant
analysis valid (Malhotra, 2008).
The objective of the data analysis was to discriminate consumers (using demographics and psychographic variables of
consumer perception for T.V. advertisements) perceiving low and high influence of T.V. advertisement on buying
decisions. Respondents were classified in to three groups perceiving low, medium and high influence of T.V. advertisement
on buying decisions. Question of interest is whether respondents perceiving low, medium and high influence of T.V.
advertisement on buying decision can be differentiated in following predictors T.V. advertisements enhance consciousness
& believability, T.V. advertisement have adverse influence on consumers, Attitudinal influence of T.V. advertisement, and
education and income of respondents.
Influence of
Std. Number of
ad on Predictor Variables Mean
Deviation Respondents
purchasing
Education 2.5917 1.19459 172
Annual household income 2.0278 .82175 172
Low(1) Attitudinal influence 2.8750 .88003 172
Enhance consciousness & believability 2.4815 .77346 172
Adverse influence of T.V. Advertisement 3.5938 .80975 172
Education 2.6253 1.07101 311
Annual household income 2.0292 .76453 311
Medium(2) Attitudinal influence 3.5063 .65506 311
Enhance consciousness & believability 3.0693 .56895 311
Adverse influence of T.V. Advertisement 3.3206 .69529 311
Education 2.4342 1.08320 357
Annual household income 1.9636 .77989 357
High(3) Attitudinal influence 3.8478 .64200 357
Enhance consciousness & believability 3.5747 .57167 357
Adverse influence of T.V. Advertisement 3.4041 .68342 357
Source Primary Data
Table 4 presents the results estimating mean values for three group discriminant analyses. Groups mean table indicates that
enhance consciousness & believability, and attitudinal influence appears to separate the three groups of respondents more
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widely as compared to other predictors namely adverse influence of T.V. advertisement, education and annual household
income. Group 1, 2, 3 have almost equal values for annual household income.
Examination of pooled within group correlation matrix indicated some correlation among enhance consciousness &
believability and attitudinal influence and adverse influence of T.V. advertisement. Education had some higher correlation
with annual household income. But correlations are on lower side, so multicollinearity was not a matter of concern.
Wilks'
Predictor Variables F Sig.
Lambda
Education .993 3.055 .048
Annual household income .998 .729 .483
Attitudinal influence .856 70.225 .000
Enhance consciousness & believability .757 134.010 .000
Adverse influence of T.V. Advertisement .988 5.038 .007
Source Primary data
The significance attached to the F ratios indicated when predictors were considered individually, T.V. advertisements
enhance consciousness & believability, T.V. advertisement have adverse influence on consumers, attitudinal influence of
T.V. advertisement, and education of respondents were found to be significantly differentiating among the three groups of
respondents, whereas annual household income did not differentiated three groups of respondents significantly. But when
values of Wilks‟ Lambda was analyzed for these predictors they indicated that enhance consciousness & believability and
attitudinal influence were found to be differentiating consumer groups more as compared to Adverse influence of T.V.
Advertisement and Education.
As there were three groups, a maximum of two discriminant functions could be extracted (Malhotra, 2008). The eigen value
associated with function 1 is .390 and the first function accounted for 95.6% of the explained variance. The second function
had a small eigen value of .018 and accounted for only 4.4% of the explained variance. As the eigen value associated with
the function 1 is large as compared to function 2, first function was superior to second (Malhotra, 2008).
Test of Wilks'
Function(s) Lambda Chi-square df Sig.
1 through 2 .707 290.024 10 .000*
2 .982 14.983 4 .005*
Source Primary Data
*Significant at 0.05 level of significance
To test the null hypothesis of equal group means for all discriminant functions, the significance level is estimated on the
bases of chi-square statistics. In table 6(b) tests of functions 1 through 2 indicates that both the functions were considered
simultaneously and no functions were removed. This resulted to the value of 290.024 for chi-square statistics, which is
significant at 0.05 per cent level. Thus the two functions together significantly discriminated among the three groups. When
first function was removed, second function alone also significantly discriminated among the three groups. So both
discriminant functions contribute significantly to group differences.
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Standardized Unstandardized
Predictor variables
Function1 Function 2 Function1 Function 2
Education -.011 -.358 -.010 -.330
Annual household income .097 .034 .125 .044
Attitudinal influence .436 -.469 .648 -.698
Enhance consciousness &
.793 .340 1.344 .575
believability
Adverse influence of T.V.
-.070 .794 -.099 1.134
Advertisement
Constant - - -6.566 -2.430
Source Primary Data
Standardized and unstandardized discriminant function coefficients indicated a large coefficient for enhance consciousness
and believability, and attitudinal influence, and income on function 1, whereas education and adverse influence of
advertisement have higher values of coefficients for function 2. In Standardized discriminant function coefficients, for
function 1 enhance consciousness and believability is the most important predictor discriminating among the groups,
followed by attitudinal influence, annual household income, education and adverse influence of advertisement. For function
2 adverse influence of advertisement is most important predictor discriminating among the groups, followed by enhance
consciousness and believability, annual household income, education, attitudinal influence.
Function 1 Function 2
Enhance consciousness & believability .904* .267
Attitudinal influence .652* -.333
Adverse influence of T.V. Advertisement -.049 .783*
Education -.110 -.380*
Annual household income -.056 -.168*
*Largest absolute correlation between each variable and any discriminant function
Variables ordered by absolute size of correlation within function
Source Primary data
Structure matrix indicated relative importance of predictors by discriminant loadings between predictors and discriminant
functions. Enhance consciousness and believability, and attitudinal influence have higher loadings for function 1, so these
predictors are primarily associated with function 1. On the other hand adverse influence of advertisement, education and
annual household income have higher loadings for function 2, so these predictors are primarily associated with function 2.
From all group scatter gram plot it is obvious that consumers of group high (3) has the highest value on function 1 and
consumers of group low (1) has lowest on function 1 (indicated by values of group centroids (table 8).
Function 1 is associated with enhance consciousness and believability, and attitudinal influence. So the consumers
perceiving higher attitudinal influence of T.V. advertisements and considering higher impact of T.V. advertisements on
enhancing consciousness and believability are likely to perceive higher influence of T.V. advertisement on buying decisions
and more likely to purchase advertised products. Conversely those with perceiving lower attitudinal influence of T.V.
advertisements and considering lower impact of T.V. advertisements on enhancing consciousness and believability are not
likely to purchase advertised products. This interpretation was further supported by examination of group means on
consciousness and believability and attitudinal influence, so it supports the H2 (hypothesis 2) and H3 (hypothesis) which
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states that psychographic and attitudinal aspects of consumer perception for T.V. advertisements significantly discriminate
the groups of consumers.
The classification results based on analysis sample indicated that 59.3% cases were correctly classified. Leave one out cross
validation correctly classified only 58.1% cases. It indicates that discriminant analysis is satisfactorily valid.
CONCLUSION
Study exemplified which demographic variables and attitudinal and psychographic aspects of advertisement discriminate
consumers perceiving different level of influence of T.V. advertisement on buying decisions. Study found that enhance
consciousness and believability, and attitudinal influence were prominent ones significantly discriminated the groups of
consumers. Out of these two, enhance consciousness and believability is most significantly discriminated the groups of
consumers. Third variable adverse influence of T.V. advertisement although significantly discriminated the groups of
consumers but not as strongly as the first two. Out of demographic variables undertaken only education differentiated
groups of consumers but it differentiated only first two groups not the low(1) and high(3) group (Table 4) and also due to
its low discriminant loading with function 2, education of respondents could not be considered as significantly
discriminating among groups of consumers.
Marketing Implications
Television advertisement plays a vital role in introducing a product or reinforcing the familiarity of the product and also
able to convince about the purchase of product. So for marketer, it becomes evident to determine the factors that associated
with the consumer which discriminate one group of consumers having favourable predisposition for the T.V. advertisement
influence on buying decision from another. The study proved out to be the statistical support for the content of advertising.
Study found that advertisements which have higher attitudinal influence and also enhance consciousness and believability
of consumers for the product and services being offered will be able to woo consumers much more effectively as compared
to the advertisement which does not have the same content and will be able to convert potential buyers into actual ones.
These two aspects of advertisement were found to be significantly discriminating the consumers perceiving low and high
influence of T.V. advertisement on purchasing. So marketers need to focus on those aspects of advertisement which will
impart higher attitudinal influence and enhance consciousness and believability of consumers for the product and service
being advertised.
The present study is elementary and general in nature. Study is focusing on various possible influential aspects of
advertising affecting the consumer and the degree to which they impact the behaviour. This study is addressing only a few
influential aspects of advertising, but there are many a moderating factors like information acquisition and hedonic benefits
(Petrovici and Marinov, 2007), cognitive responses (Batra and Ray, 1986), emotions (Holbrook and Batra, 1987), visual
imagery (Burns et. al., 1993), mood, TV program in which advertising is given (Goldberg and Gorn, 1987) which affects
the advertising affects. Studying these additional influential affects of advertisement will further examine the understanding
of consumer‟s perception of advertising. Because only a few dependent variables were used in this study, the findings may
not apply to consumers‟ groups in general. Furthermore, other explanatory variables or third variables may account for the
findings. While this study does not provide answers to all questions regarding television advertising effects to assess
consumers‟ perception towards television advertisements‟ influence on buying decisions, through the use of more predictor
variables in the study like hedonic benefits, cognitive responses, emotions, mood can help to further generalize the study.
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