Impact of Radio Advertisements on Buying Behavoiur of Customer

MEDI-CAPS INSTITUTE OF TECHNOLOGY AND MANAGEMENT (Affiliated to D. A. V. V, Indore) SYNOPSIS OF MAJOR RESEARCH PROJECT â€Å"THE IMPACT OF RADIO ADVERTISEMENTS ON BUYING BEHAVIOUR OF URBAN CUSTOMERS† GUIDED BY : SUBMITTED BY: Dr. DEEPAK TALWAR VISHAL CHAWLA [PhD, Assistant Professor] MITM MBA III-SEM, MITM CONTENTS 1. TITLE 2. INTRODUCTION 3. CONCEPTUAL FRAME WORK 4. REVIEW OF LITRETURE 5. RESEARCH METHODOLOGY 6.LIMITATIONS OF STUDY 7. BIBLIOGRAPHY. INTRODUCTION This study aims to analyze the impact of radio advertisements on urban customer towards buying behavior in retail stores and attempts to determine the role of radio advertising on broadcasting of information on the sales promotions. The impact of radio advertisements on the store choice and buying preferences are analyzed based on descriptive investigation. ADVERTISEMENT – The American Marketing Association defines advertising as â€Å"any paid form of non-personal presentation and promotion of ideas, goods an d services by an identified sponsor. The paid aspect of this definition reflects the fact that the space or time for an advertising message generally must be bought. The non personal component means that advertising involves mass media (e. g. radio, magazines, newspapers etc. ). Advertising is non-personal as it is not directed to any single individual. Secondly, the sponsor i. e. the manufacturer or producer is identified as his name and address is always contained in an advertisement and he also bears all the cost involved in the process.Thirdly, the producer can also promote an idea regarding quality, design, packing and pricing, etc. of any product or service. Thus, we can say, advertising consists of all activities involved in presenting a sponsored message regarding a product, service or an idea. RADIO – An electronic receiver that detects and demodulates and amplifies transmitted audio signals. RADIO ADVERTISEMENTS – It is the presentation and promotion of idea s, goods and services through radio as advertising medium.In radio there are short breaks during transmission of any programme which is filled by advertisements of products and services. Radio advertising is one of the tools of advertising which is effectively used for communication and positioning BUYING BEHAVIOUR – Buying Behavior is the decision processes and acts of people involved in buying and using products. In other words it is the process by which individuals search for information about the product , select, purchase, use, and dispose of goods and services, in satisfaction of their needs and wants. Radio is the most involving and powerful promotional medium.Radio’s ability to create dynamic promotional concepts, to build anticipation and generate excitement, to magnetize the audience and the exhilaration radio delivers for both audience and advertisers is unparalleled. Radio has made a comeback in the lifestyles of Indians. Radio has the reputation of being t he oldest and the cheapest medium of entertainment in India. The radio industry has been completely reshaped by the various private players that entered the sector after the government allowed foreign investment into the segment and opened the licenses to the private players .The Indian government has already given 338 licenses for FM radio channels in 91 big and small towns and cities. The current size of the radio market in India is Rs 300 crores and is expected to achieve the highest growth rate of 32 per cent in coming years. The quality of the sound and the music has improved significantly with the emergence and use of satellite radio. The audience profile has also shifted to the high-income group. Local advertising, lower amount of money spent by the companies to advertise on radio is an added attractiveness for the players.All India Radio (AIR) – the national service provider owned and operated by the Ministry of Information and Broadcasting under the Government of Ind ia – is the largest player in the industry. Radio is an ideal media for marketing fast moving consumer goods because it can reach wide targeted listener demographics in urban territory. A large number of people listen to radio while traveling in urban areas and respond to the broadcast of various commercial messages. CONCEPTUAL FRAMEWORKIt is a logical development, described and elaborated network of association amongst variables that has been identified through interviews, observation and literature survey. Identification of key variable is very important in every research study. It can be defined as:- â€Å"A variable is anything that takes different values† Dependent Variables – In my project, our depending variable is â€Å"Buying Behavior of Customer†. Independent Variable – In my project, independent variables are â€Å"frequencies of radio advertisements on air and purchasing pattern†.Intervening Variables – Willingness to buy. Extraneous Variables – â€Å"Sales tax† as sales tax has little effect on the buying behavior, so it can be ignored. REVIEW OF LITERATURE Bob Trowbridge Created on: October 27, 2009 In the research he examined that basic need which should be focused before spending money on any advertising campaign is to know your market. Who buys your product or uses your service? If you know the audience you need to reach, you are more than halfway to finding the proper radio advertising vehicle.It's not just the right radio station, but the right program. With some radio ads you can pay for a certain number of ads to run throughout the day (and night). Depending on the station, this can mean that your ad will be aired during music programming, talk radio, and or news segments. The ultimate feedback from your ads will be an increase in sales. But you don't want to risk your advertising money without having a pretty good idea of the success of your ads before the sales show up. Donal d pennington Created on: August 30,2007 People are good listeners always.That’s the reason that business promotion strategies via radio advertisement are globally accepting. With a well-timed ad, following immediately after a popular song, there's the psychological advantage of the consumer hearing a message while still in an â€Å"upbeat mood† from the previous song or maybe a funny joke from the DJ. So, most businesses placing an advertisement on the airwaves take the time to have anything from a special offer just for that campaign, or maybe a toll-free number in place for listeners to respond to in place before the ad campaign is even created Pornpitakpan and Tan, 2000Radio advertisements on sales promotions at retail stores are largely created with humor to add emotional value. Listeners perceive humor and develop attitude towards communication and the brand. The purchase intentions are higher for humorous advertisements containing moderate incongruity than those conveying message directly different levels of emotions such as warmth, love, longing and desire, happiness and amusement were elicited by different commercials of retail stores. The most memorable advertisements among radio listeners have been those that evoked the most positive feelings and were the best understood.However, need to acquire product significantly affect a person's interpretation and emotional experience of a commercial Radio advertisements drive consumers to remember messages differently in reference to the favorite jingle, program or music. Such beliefs of listeners help advertisement to stay atop of the mind and consumers unconsciously associate with it as a personally relevant information and have an enduring impact on their emotions. Short cycle radio advertising is developed to have an enduring emotional impact on an audience by facilitating their creation of personally relevant understandings of an advertisement.How to measure the impact of radio advertising c ampaigns Created on: June 02, 2007 Studies have shown that people are more receptive to what they hear, as opposed to what they see. In other words, radio advertising is often more effective than TV. Advertising TV ads are often seen as a distraction and a nuisance that always seems to appear at the worst possible time when you are watching your favorite show. However, it's been found that people find radio ads more acceptable because they are listening to the radio station they enjoy, and the feeling often carries on into the ads they hear.There are several ways to tell what impact your radio ad campaign is having. Fist of all, stations have a ranking system (through polls) that will rate the effectiveness of your campaign. Also, an increase in sales that corresponds with your campaign will also serve as an indicator RATIONALE OF THE STUDY The interest paid by the past researchers on the functions of radio advertising is considered as one reason of the study. As we know that advert isers ; marketers are more concerned to know what are the customer motive ; their purchasing pattern in order to use different trategies to influence customer behavior ; when we get our findings than we will give very fruitful suggestions to the marketing department of the organizations that we can increase their sale amongst the customers. RESERCH METHODOLOGY Objectives :- The study aim to see the effect of advertisement on consumer behavior by perusing the following objectives:- * To study the impact of radio advertisement on the buying behavior of customer. * To find out the receptivity of the advertisement due to appeal use in it. Research design:- DescriptiveHere in my research process, my purpose is to evaluate that what affects the customer buying behavior, which are the factors which influence the buying behavior, how radio advertisements affect the buying behavior of customer. So I can say that I am explaining an existing situation so our purpose of study is descriptive. Hy pothesis :- H1 – Radio advertisements drive positive effect on listeners towards determining store choice and buying probabilities. H0 – Radio advertisements do not drive positive effect on listeners towards determining store choice and buying probabilities.Sample Plan :- The data will be gathered from 50 individuals (sample size is 50). Each individual is chosen randomly and entirely by chance, such that each individual has the same probability of being chosen at any stage during the sampling process. Tools of data collection :- Primary data Structured questionnaire – For this study a self-explanatory questionnaire consisting of 15 fixed item responses was adopted along with the instructions. Questionnaire items contained informative queries about advertised brand and its consumption process. Secondary dataArticles , research papers, browsing internet Tools of data analysis :- After gathering the data, frequency, percentage and the mean will be used to analyze the collected data. LIMITATION OF THE STUDY Errors -Respondents’ Error – the bias of the respondents sometimes leads to wrong results. Also unwillingness to answer certain questions also bring in errors in the conclusion -Researchers’ Error ; Interviewer’s Error – sometimes the question can’t be properly put forward to the respondent by the interviewer and also he may be bias in a few cases. BIBLIOGRAPHY Research Methodology – C. R. Kothari, second edition, Wishwa prakashan. * Principles of Advertising – Monle Lee ; Carla Johnson, Viva books pvt. Ltd. * Effectivity of Radio Advertisement- Liezel Campbell. WEBLIOGRAPHY * http://www. helium. com/items/566995-how-to-measure-the-impact-of-radio-advertising-campaigns(Retrieved on 14. 03. 12). * http://sibresearch. org/uploads/2/7/9/9/2799227/rajagopal_wp-04-2010( Retrieved on 13. 03. 12) * http://www. emeraldinsight. com/journals. htm? issn=0959-0552;volume=39;issue=7;articleid=1931 055;show=html(Retrieved n 14. 03. 12).