Customer Equity
Customer Equity
ISSN 2162-4860
                                                                             2013, Vol. 3, No. 1
                                      SK Kamal Ahmed
                 Department of Business Administration, Leading University
                             83, Siddeshwari, Dhaka, Bangladesh
                             E-mail: tusher_leading@yahoo.com
Abstract
Advertisements have emerged as the greatest influence on consumers. In a competitive market,
advertising can play a significant role in distinguishing a product from competition. This study
attempts to find out the impact of television advertisements on a sample of private service
holders of Bangladesh. The study is based on both primary and secondary data. Data collected
from the survey were analyzed using the Likert scale. The results revealed that consumers
accepted more product-related information of TV ads than the emotion-related ones. In
addition, Male respondents are more likely to consider TV ads as fun and excitement than
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female respondents. The study also found that respondents consider that TV ads provide
important insights about life, which can be an encouraging outcome for the marketers.
However, driving demands for unnecessary products is considered as the most harmful impact
of TV ads. Finally, based on findings a model is developed and proposed.
Keywords: Advertisement, Consumer behaviour, Response process.
1. Introduction
Advertising presents us all the myriad situations possible in a life of free choice. It provides
ideas about style, morality, behavior and so on. Advertising has become a kind of social guide
(Peter, Olson, 2005). Many people argue that advertising is a part of life and people must learn
to deal with it in the consumer socialization process of acquiring the skills needed to function in
the marketplace (Venkataramini, 1995). In this regard, television is an important source of
information for people to learn about products. However, not everything is sold on the value of
advertising. Moreover, it is true that at times advertising creates social deception (Belch, 2004).
Since the boom of the 1920s, the advertising industry has tried to convince people why they
need to purchase the newest product on the market. Even more astounding, the advertising
industry has succeeded in changing attitudes towards it (Eric et. al., 1997). In TV ads, people
often seek out images of thin models, even when they anticipate that the images will make
them feel uncomfortable. Advertising takes place in a public forum in which business interests,
creativity, consumer needs, and government regulations meet each other, and its visible social
role makes it a target for criticism (Wells et. al., 2006). As a result, today’s consumers believe
that a great deal of advertising is unethical. These people say that it raises the prices of products,
is untruthful, tricks people or targets the vulnerable. Critics argue that most advertising is more
propaganda than information; it creates needs and identify faults that consumers never knew
they had (Belch, 2004). Ads suggest that children won’t succeed without a computer, that our
bodies should be leaner, our faces younger, and our houses more decorated. They point to the
sultry, poorly dressed bodies used in ads to sell everything from perfume to beer to power tools
and argue that advertising promotes materialism, insecurity and greed (Krugman, 2001).
People find themselves as the target of many advertisements. Through research of a variety of
investigative journals & books, this reason illustrates the impact of TV ads to the people’s
response process-the thought process of people with different advertisements and their
perceptions about advertising, possible reasons or benefits of watching TV ads, customer
expectation from TV advertising & possible harmful impact of TV ads. Advertising has
changed the way people consume goods and services. However, advertising also supports
brands we like, as well as teaches us how to use new products that make our lives easier and our
health better (Wells et. al., 2006).
1.1 Related Constructs of the Study
Marketing, more than any other business function, deals with customers. It is a process by
which, companies create value for customers and build strong relationships in order to capture
value in return (Kotler and Armstrong, 2009). And building good customer relationship calls
for more than just developing a good product, pricing it attractively and making it available to
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target customers. Companies must also communicate their value proposition to customers, as it
is a crucial element in a company’s efforts to build profitable customer relationships (Kotler
and Armstrong, 2009).
A company’s total promotion mix-also called its marketing communications mix consists of
the specific blend of advertising, sales promotion, public relations, personal selling and
direct-marketing tools that company uses (Kotler and Armstrong, 2009) to communicate with
current and potential consumers (Glowa, 2002). Within this communication mix, advertising is
as old as civilization and has been used as the means of communication to buy and sell the
goods and services to the society. It is an important tool of promotion that can create wonders
with beautiful words to sell product, service and also ideas
1.1.1 Advertising: Purpose, Appeal and Message Strategies
Advertising refers to any paid form of non-personal presentation and promotion of ideas, goods
or services by an identified sponsor (Belch, 2004). Advertisers create ads with a variety of
objectives in mind from getting people to sample a product, to persuade them to donate money
for an environmental cause or vote for a political candidate (Glowa, 2002). Here are six
categories of advertising purposes, arranged from most direct to most indirect (Jones 1992 and
Bovee et al., 1995):
To prompt action: Direct action advertising is designed to motivate people to act. It involves
ads that try to persuade people to make a purchase, call a phone number, or mail/fax/email an
order form, and includes many of the common ads consumers see in newspapers, in-store
adverting and package advertising.
To encourage information search: In some cases, it is unreasonable to assume that a consumer
is ready to make an immediate purchase based solely on advertising. In these cases, consumers
need more information – a test drive or a demonstration – before making up their minds. This is
often the case for big-ticket items and such ads often include a telephone number or website so
the consumer can seek more information.
To relate product to needs: A less direct form of advertising, this category includes those ads
that draw a link in the consumers’ minds between the product and their needs as a consumer.
To encourage recall of past product satisfaction and prompt a repurchase: Ads of this nature
are designed to summon memories of past satisfaction and get customers to purchase a
product again.
To modify attitudes: One of the more challenging objectives facing advertisers is to modify
attitudes towards a product. This is often appropriate when a firm’s product has received a
bad reputation for one reason or another or if a firm is attempting to recapture customers they
lost to a competitor. Tylenol employed this strategy after its headache medication was
sabotaged with cyanide.
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To reinforce attitudes: The final category of advertising objectives seeks to reinforce attitudes
that customers already have towards a product. Market leaders (such as Coke or McDonald’s)
often use this to maintain their market share and volume
Advertisements work because they make an effective appeal to some need or desire in the
people who view, read or listen to them. The advertising appeal is an attempt to draw a
connection between the product and the audience. At the broadest level, there are two main
types of appeals: logical and emotional. Logical appeals aim for the buyer’s head, while
emotional appeals aim for the buyer’s heart. Appeals can be either positive or negative (Glowa,
2002). The most common types of appeals are based on price or value; quality; star
identification; ego; fear and/or anger; the five senses; sex, love and social acceptance; and
novelty (Jones 1992).
Once the advertising objectives and appeals have been decided, the creative advertising team
must decide how best to present the product so that the message will have the maximum impact
on the target market. Some of the more common message strategies used for creative execution
are (Tuckwell, 1998):
Testimonials: In a testimonial ad, a typical user of the product presents the message. Since
ordinary people are used, (as opposed to models or celebrities), the message is usually
perceived as being believable.
Product as Hero: In the case of product-as-hero, the advertiser presents a problem situation
(using a negative appeal strategy), which is quickly solved when the product comes to the
rescue.
Product comparisons: A final message strategy compares one product against another in the
same category. To be successful, the attribute singled out must be important to consumers.
1.1.2 Communication Models of Advertising
Advertisers are constantly trying to define and model how advertising works, and from models,
they often try to pick meaningful communications objectives (Bovee et al. 1995). This section
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hierarchy. This suggests that consumers can learn from previous experience and swerve from
the awareness to purchase pattern (Glowa, 2002).
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“habitual” and “satisfaction” – with their most appropriate traditional and variant
hierarchy-of-effects models (Glowa, 2002). Vaughn (1986, also Rossiter et al. 1991) identified
250 product categories for recently purchased products on the basis of involvement and the
think – feel dimensionality.
1.1.5 The Cognitive Response Model
A cognitive response is the attitude a consumer depicts after watching an advertisement. The
consumer will either agree or disagree with the message and may transmit the message to
previous beliefs about the particular product. Consumers’ everyday environment contains a
great deal of information, large parts of which are created through marketing strategies (Peter
& Olson, 2007).
                        Exposure to
                       environmental
                        information
                  Interpretation process:
                         Attention
                      Comprehension
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4.1.2 Age
Among the seven age groups of respondents, 12 (6+6) percent respondents of Male & female
were within the below 25 years age group. The largest age group of was 26-30 years, which
constituted 30 (20+10) percent of respondents. 23 (17+6) percent of the respondents were in
the age group 31-35 years. The third large age group of respondents was 36-40 that represented
21 (16+5) percent of total respondents.
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It can be an encouragement for the marketers that respondents think TV ads depict the ideas
about life, which scored top (3.63, table 4). This is further strengthened by the fact that 59% of
the respondents agreed upon this. However, 56% respondents agreed that TV ads make false,
deceptive or misleading claims about product, demonstrated by the score of 3.59 (table 4).
Moreover, it can be noted from the table that most of the respondents do not consider that TV
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ads violate public standard of good taste, create insecurities, target vulnerable groups, market
dangerous products and use inappropriate messages.
4.4 Most Harmful Impact of TV Ads
Here respondents were asked to rate the most harmful impact of TV ads on a scale from 1 to 5
(5 being the most important and 1 being the least important). The weighted average score for
each criterion is shown in the table 5. Driving demand for unnecessary products was
considered the most harmful impact of TV ads by the respondents (4.05, table 5). Unfair price
claims and confusing guarantees & warranties are other two important impacts perceived
negatively by the respondents.
Table 5: Harmful impacts of TV ads
                                 Probable harmful impact            Mean rank
                        Drive demand for unnecessary products         4.05
                        Unfair price claims                           3.77
                        Unclear guarantees & warranties condition     3.57
                        Sexual appeal                                 3.34
                        Manipulate emotion unnecessarily              3.28
                        Lack of authentication                        2.84
                        Untrue information about product              2.81
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          Exposure
          Consumer watch TV ads
          Interpretation
  R                                                                       Memory
          Help making right purchase decision by
  E                                                                       Specific information
          providing relevant information of
  A                                                   Demographic         regarding products
          products and learn to respect each other
  S                                                   variance            (features, benefits,
  O       It is pleasurable and fun to watch but      exists.             positioning)
  N       sometimes make useless attempts to
  S
          entice excitement                                               Forming both
                                                                          positive and
                                                                          negative beliefs
  I       Provide ideas about life without
  M       violating public standard of good taste
                                                      Demographic         Improved
  P       and using inappropriate sentence.
                                                      variance            knowledge structure
  A                                                                       and better recall
          Make false, deceptive or misleading         exists.
  C
  T       claims about product and drive
          demands for unnecessary product.
          Integration
          Development of attitude towards brand
          by combining product knowledge and
          affective feelings (i.e., likings or
          disliking)
          Behavior
          Final decision to purchase or not to       Feel-think-do    Think-feel-do       Feel-do-think
          purchase based on knowledge and
          feelings
                                                     Think-do-feel    Do-feel-think       Do-think-feel
          Alternative behavior path based on Ad
          objectives:
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and unfavorable attitude towards the advertised brand, which finally decides the purchase
behavior. Moreover, the final behavior path varies by the objectives of the advertiser.
5. Limitations & Scope for Further Research
The major limitation of the research is that the sample size is small as there were only 100
respondents, which seem to be too small to represent the whole population of television
viewers in Dhaka city. Moreover, unequal distribution of respondents across different survey
areas is another limitation. More insight could be realized if the respondents were distributed
equally in all the survey areas. Despite these limitations, this study can be a starting point for
more similar research. Studies may be carried out with respondent from diverse demographic
profiles to get a more in depth understanding of their purchase behavior. In addition, future
studies can explore the impact of ads in other media like print, radio, internet etc in order to find
out which one is the most effective.
6. Conclusion & Recommendations
6.1 Conclusion
Television and advertising together present a lethal combination and has become an integral
part of modern society .It is the most convenient route to reach not only adult consumers but
also the adolescents. Young people are manipulated by advertisement promise that the product
will do something special for them, which will transform their lives. The results of the study
revealed that the young people viewed TV advertisements with interest and found them
entertaining and informative. The research reveals that TV ads provide helpful information
about product to the customer. However, advertising also supports brands we like, as well as
teaches us how to use new products that make our lives easier and our health better. The
manufacturers should, therefore, take care to provide all the information, which would help the
consumers in decision making process.
6.2 Recommendations
Several recommendations are drawn based on the findings of the research. Firstly, relevant
information about the product is the important one for viewing advertisements. Respondents
not only view advertisements as a form of enjoyment, excitement but also seek to find
something in ads that is facilitating to purchase best or better product. So, in this sense
advertiser must consider this issue while making ads. Secondly, though advertisements have
lots of reimbursement, but it has some unenthusiastic impact. A number of ads generate
redundant demand of a product i.e. after watching advertisements; viewers feel the demand for
that product, although he or she does not need that. On the other hand, unfair price claims,
untrue information, sexual appeal are the foremost issues that generate harmful impact in the
response process. One of the most significant issues in today’s ads is to manipulate emotion
unnecessarily towards the brand. This issue creates positive behavior in the short term, but after
realized consumer memory store pessimistic beliefs about that brand. Therefore, marketers
should think about the careful use of emotion to promote a brand. Thirdly, this study shows that
advertising plays a major role in influencing & transmitting social values, sometimes provide
ideas about life style, morality etc. Advertising can really be effective if they can blend the
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