Wutan Huatan Jisuan Jishu ISSN:1001-1749

EFFECTIVENESS OF ADVERTISING ON CONSUMR BUYING

DECISION MAKING STYLE WITH SPECIAL REFERENCE TO HOME
APPLIANCES AT CHENNAI CITY
K. Tamilselvan1 Dr. S. Kumaresan2
Abstract
Advertising is a means of communication that has been developed to influences the
behaviour of customers and insist them to take purchase decision towards goods and services.
The primary objective of the study is to find out the effect of advertising on consumer buying
decision making style with respect to home appliances at Chennai city. The study collected both
primary and secondary data and applied statistical tools like descriptive, chi-square test,
Structural Equation Modeling (SEM) and Kendall's W test to analyze the data. The research
design of the study is analytical in nature. The target population was consumers of home
appliances. The sample size of the study was 100 consumers. Stratified sampling technique has
been used to collect data from the consumers. The study found that there is an association
between socio-economic factors, advertising effectiveness and consumer buying decision making
style. The study concluded that there is a significant and positive effect of advertising on
consumer buying decision making style with respect to home appliances at Chennai city.
Possible suggestions and conclusions were made.
Keywords: Advertising Effectiveness, Consumer Buying Decision Making Style, Home
Appliances, Chennai.
I. Introduction
In this current scenario, marketing the goods and services to the ultimate customer has
become a big challenge for the organizations. This is because of emergence of many multi-
national companies, huge number of competitors, various avenues to market the goods and
services. Apart from price, quality and distribution channels, it is only through promotional tools
the companies can able to enhance their sales and have a close interaction with customers. In
particular, to make aware of its goods and services to a large number of customers and to have a
wide distribution of its goods and services, the only effective channel available for the
companies is that advertising. It is a means of communication that conveys information about
goods and services to the customers at global level and allows them to make buying decisions
about a product or services. It is considered as a significant element for the company’s economic
growth. The main goal of advertising is to have an effect on consumer buying behaviour (Khan,
et al., 2012). Thus, the study has been undertaken to identify the advertisement effectiveness on
consumer buying decision making style with respect to home appliances at Chennai city.
II. Statement of the Problem
Nowadays, it is difficult for the home appliances companies to choose a right channel,
effective promotional tools and strategies to facilitate the marketing of goods and services. On

1
Mr. K. Tamilselvan., M. Com., M.Phil., Research Scholar, Pachaiyappas College, Chennai.
2
Dr. S. Kumaresan., M. Com., M.Phil., BEd., Ph.D., Guide and Supervisor Associate, Professor of Commerce
(Retd.), Pachaiyappas College, Chennai.

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the other hand, due to the availability of wide range of home appliances and promotional
resources, customers are confounded to take the right buying decision. Consequently, in today’s
competitive market, advertising has been used as a common tool for managing the changes with
respect to technology, consumer behaviour and their buying decision. The companies have to
make their advertisement effectively by keeping in minds of their demographic factors, social
and cultural factors, psychological factors and geographic factors. Predominantly, they have to
present the advertisement which insists them to take instant buying decision of goods and
services.
III. Literature Review
Advertisement
Advertisement is a paid form of publicity or promotion by some sponsor reaching via various
conventional media such as television, newspaper, commercial radio ads, magazine mail,
outdoor advertising or digital media such as blogs, websites and text messages (Ahmed and
Ashfaq, 2013). In contrast to other sources, advertising is a generally accepted source of
information among consumers and therefore media mix decisions are crucial for advertisers
(Shrivastava, 2014). Newspaper advertisements play a crucial role in creating a brand and it
affects purchase decision (Nayak and Shah, 2015).
Consumer Buying Behaviour
Consumer buying behaviour is an art and science of knowing needs and wants of consumers, and
developing an understanding how prospective buyers decide to spend their resources like time,
money and efforts during different stages of buying process. Consumer behavior is a field of
study concentrating on consumer activities (Rogers D. Blackwell, 2006). Individual towards a
product or service defines consumer behavior as a study of responses. (Kardes. 2001) Consumer
behavior is to understand how a consumer makes decision to buy goods by using the available
resources such as time, money, and effort for buying, using, and disposing goods and services
(Chetan Bajaj, 2009). It is a decision making process of an individual physically by engaging in
assessing, buying and using or disposing the goods and services. (David L. Loudon, 2002).
Effect of Advertisement on Consumer Buying Behaviour
Deshpande, et al. (2019) assessed the impact of advertisement on consumer buying behavior in
electronic industry (consumer electronic products) within the metro cities of Maharashtra, India.
The study explored that a creative and well executed advertisement always has a great impact on
the buying trends and the purchasing behavior of consumers in the electronic industry. In
addition, the quality of product, price and brand also have a strong impact on the buying
behavior of the consumer.
Sunderaraj, R. (2018) examined the impact of advertisement on buying behaviour of consumers
in Sivakasi. The study found that advertisement help the consumer is better decision making. It is
also found that there is no relationship between age of the respondents and level of impact of
advertisement and there is no relationship between income and satisfaction with advertised
product at the time of using the product.

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(Abdul et al., 2016) examines t how much advertisement bring effect on the consumer’s buying
behavior with reference to FMCGs in Southern Punjab, Pakistan. The study finds out the factors
like necessity of advertisement, pleasure of advertisement, dominance of advertisement, brand
recall advertisement and stimulation of advertisement have an effect on creating and shifting the
consumer’s buying behavior. The results of the study revealed that advertisements have
significant impact on the consumers ‘buying behavior and widen their choices.
Maheshwari, Seth and Gupta (2016) studied the consumer buying behaviour in Indian
automobile sector. Their study concluded that advertisement effectiveness positively influences
consumer buying behaviour.
Fatima and Lodhi (2015) assessed the impact of advertisement on buying behaviour of
consumers’ with respect to cosmetic industry in Karachi City. The study was conducted on the
200 young male or female who use different brands of cosmetics to check the influence of
advertisement on their buying behavior while creating the awareness and building the
perceptions. The study revealed advertisements are very useful in creating people's
understanding, but they are not able to create clear customer expectations. Any of these factors,
such as market awareness and consumer expectations, can inspire consumers to purchase a
specific product because there is a positive relationship between them.
Vijayalakshmi, S and Mahalakshmi, V. (2013) attempted to understand the decision-making
process of buyers, both individually and in groups with respect to home appliances at Chennai
city. It studied the characteristics of individual consumers such as demographics and behavioral
variables in an attempt to understand people's wants. The findings of the study designated that
the set of self determining variable are weakly associated with the self determining variable. The
profound analysis instituted those social and physical factors along with marketing mix elements
are sturdily associated with consumer buying behavior.
Sonkusare (2013) studied the impact of television advertising on buying behavior of women
consumers with special reference to FMCG products Chandrapur city. The study concluded that
television advertising have greater impact on buying behavior of women customers. It is found
that before purchasing any product, consumer collects information for their proper purchasing
decision making through advertising. It has been also concluded that majority of women
consumers are attracted towards the marketing strategy through advertising and majority of
consumers from Chandrapur city spends monthly more than 2000 rupees on purchasing FMCG
products.
Kumar & Raju (2013) find out the role of advertising in consumer decision making. The study
revealed that advertisements are able to change the consumer’s opinion about a particular
product.
IV. Scope of the Study
The scope of the study is constrained with effect of advertising on consumer buying decision
making style with respect to home appliances at Chennai city. The top six home appliances
brands namely LG, Godrej, Samsung, Whirlpool, Voltas and IFB has been chosen to find out its
advertising effectiveness on consumer buying decision making style. In order to find out the

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consumer buying decision making style the study has chosen five decision making styles from
among eight styles presented by Safiek Mokhlis in his study namely brand conscious consumer,
quality conscious consumer, impulse buying consumer, variety-seeking consumer and
dissonance buying consumer.
V. Research Methodology
The primary objective of the study is to find out the effect of advertising on consumer
buying decision making style with respect to home appliances at Chennai city. In order to
achieve the objective, the study collected both primary and secondary data and applied statistical
tools like descriptive, chi-square test, Structural Equation Modeling (SEM) and Kendall's W test
to analyze the data. Hence, the research design of the study is analytical in nature. The target
population of this study consists of consumers of home appliances. The sample size of the study
is 100 consumers. Stratified sampling technique has been used to collect data from the
consumers. The questionnaire consists of three dimensions namely consumer socio-economic
factors, advertising effectiveness with respect to home appliances and consumer decision making
style.
VI. Theoretical Framework
Based on the preliminary data collection and review of literature, the study has chosen
two independent variables namely consumer socio-economic factors and effectiveness of
advertising with respect to home appliances and one dependent variable namely consumer
buying decision making style. The objective of the study is to find out the effect of advertising
on consumer buying decision making style with respect to home appliances at Chennai city. The
following diagram depicts the conceptual framework of the study.
Independent Variable (IV) Dependent Variable (DV)

Brand Conscious Consumer

Quality Conscious Consumer

Advertising Consumer
Effectiveness Buying Decision Impulse Buying Consumer
Making Style
Variety Seeking Consumer

Dissonance Buying Consumer

VII. Objectives of the Study
1) To study the socio-economic factors of the respondents consuming home appliances at
Chennai city.
2) To measure the level of advertising effectiveness and consumer buying decision making
style with respect to home appliances at Chennai city.

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3) To identify the effect of advertising on consumer buying decision making style with
respect to home appliances at Chennai city.
4) To suggest ideas to enhance the effectiveness of advertising in order to have accurate
decision making style of consumers with respect to home appliances.
VIII. Hypotheses
On the basis of theoretical perspective and objectives, the following hypotheses are
developed for the study:-
H11: There is an association between socio-economic factors, advertising effectiveness and
consumer buying decision making style.
H12: There is a significant effect of advertising on consumer buying decision making style.
H13: There is a significant difference in the mean rank of consumer preferences on home
appliances brand.
IX. Analysis and Interpretation
a. Reliability Test
The researcher used Cronbach’s Alpha Reliability to examine the internal consistency of
variables in the construct. Cornbach’s Alpha states that reliability less than 0.60 are considered to
be poor, while those in the 0.70 range are acceptable and those over 0.80 are considered good
(George & Mallery, 2003; Kline, 2000).
Table-1
Sl. No. Scale No. of Items Cronbach’s Alpha (α)
1. Advertising Effectiveness 10 0.945
2. Consumer Decision Making Style
a. Brand Conscious Consumer 5 0.932
b. Quality Conscious Consumer 5 0.994
c. Impulse Buying Consumer 5 0.963
d. Variety Seeking Consumer 5 0.974
e. Dissonance Buying Consumer 5 0.969
[Source: Primary data]
From the above table, it is learnt that Cronbach’s Alpha reliability for all the factors was
above 80% which means that the variables produce consistent results if measurements are made
repeatedly.
b. Descriptive Statistics
In order to measure the level of advertising effectiveness and consumer buying decision
making style with respect to home appliances at Chennai city, descriptive statistics is applied.
Table-2
Sl. No. Scale Mean Standard Deviation
1. Advertising Effectiveness 3.05 1.183
2. Consumer Decision Making Style
a. Brand Conscious Consumer 3.30 0.988
b. Quality Conscious Consumer 3.29 0.976

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c. Impulse Buying Consumer 3.03 1.045

d. Variety Seeking Consumer 3.34 0.984
e. Dissonance Buying Consumer 3.24 1.006
[Source: Primary data]
It is inferred from the above table that the mean value of all the variables are below 3.50,
which means the effectiveness of advertising (3.05), consumer decision making style with
respect to brand conscious (3.30), quality conscious (3.29), impulse buying (3.03), variety
seeking (3.34) and dissonance buying (3.24) are at average level. Hence, it is proven that the
consumers have moderate opinion on advertising of home appliances and have lack the
consistency and precision in decision-making about home appliances.
c. Chi-square test
In order to find out the association between socio-economic factors, advertising
effectiveness and consumer buying decision making style, chi-square test is applied.
H01: There is no association between socio-economic factors, advertising effectiveness and
consumer buying decision making style.
H11: There is an association between socio-economic factors, advertising effectiveness and
consumer buying decision making style.
Table-3
Association between Socio-Economic Factors and Advertising Effectiveness
Socio-Economic Factors Chi-Square Value P value Conclusion
**
Gender 7.322 0.002 Accepted at 1% level
Age 13.739 0.015* Accepted at 5% level
Educational Qualification 14.503 0.029* Accepted at 5% level
Occupation 12.239 0.011* Accepted at 5% level
Monthly Income 11.626 0.013* Accepted at 5% level
Marital status 6.424 0.004** Accepted at 1% level
[Source: Primary data]
Note: ** Denotes significant at 1% level; * Denotes significant at 5% level.
Since the P value is less than 0.01, the alternate hypothesis is accepted at 1 per cent level
of significance. Hence it is concluded that there is an association between gender and marital
status with consumers’ perception on advertising effectiveness. Since the P value is less than
0.05, the alternate hypothesis is accepted at 5 per cent level of significance. Hence it is
concluded that there is an association between age, educational qualification, occupation and
monthly income with consumers’ perception on advertising effectiveness.
Table-4
Association between Socio-Economic Factors and Consumers’ Buying Decision Making
Style
Socio-Economic Factors Chi-Square Value P value Conclusion
*
Gender 6.893 0.013 Accepted at 5% level
Age 11.347 0.022* Accepted at 5% level
Educational Qualification 13.462 0.014* Accepted at 5% level
Occupation 14.761 0.016* Accepted at 5% level

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Monthly Income 12.654 0.018* Accepted at 5% level

Marital Status 5.618 0.002** Accepted at 1% level
[Source: Primary data]
Note: ** Denotes significant at 1% level; * Denotes significant at 5% level.
Since the P value is less than 0.01, the alternate hypothesis is accepted at 1 per cent level
of significance. Hence it is concluded that there is an association between gender and marital
status with consumers’ buying decision making style. Since the P value is less than 0.05, the
alternate hypothesis is accepted at 5 per cent level of significance. Hence it is concluded that
there is an association between age, educational qualification, monthly income and occupation
with consumers’ buying decision making style.
d. Structural Equation Modeling (SEM)
In order to find out the significant effect of advertising on consumer buying decision
making style with respect to home appliances at Chennai city, Structural Equation Modeling is
applied.
H02: There is no significant effect of advertising on consumer buying decision making style with
respect to home appliances at Chennai city.
H12: There is a significant effect of advertising on consumer buying decision making style with
respect to home appliances at Chennai city.
Table-5
Variables in Structural Equation Model Analysis
Variables USC SE SC t value P value
CBDMS AE 0.056 0.155 0.135 2.435 0.015*
CBDMS BCC 0.054 0.156 0.133 2.462 0.014*
CBDMS QCC 0.050 0.304 0.241 4.793 0.001**
CBDMS IBC 0.052 0.175 0.142 2.752 0.006**
CBDMS VSC 0.059 0.108 0.100 1.695 0.018*
CBDMS DBC 0.050 0.125 0.100 1.973 0.038**
[Source: Primary data]
Note: ** Denotes significant at 1% level; * Denotes significant at 5% level.
Unstandardized Coefficient
From the above table, it is found that the unstandardized coefficient of consumer buying
decision making style is 0.056. The estimated positive sign implies that consumer buying
decision making style would increase by 0.056 for every unit increase in advertising
effectiveness and this coefficient value is significant at 5% level.
It is also found that consumer buying decision making style would increase by 0.050,
0.050, 0.052, 0.059 and 0.050 for every unit increase in brand conscious consumer, quality
conscious consumer, impulse buying consumer, variety-seeking consumer and dissonance
buying consumer and this coefficient value is significant at 1% and 5% level.
a) Standardized Coefficient
Based on the standardized coefficient, advertising effectiveness had a greater impact on
consumer buying decision making style (0.155). It means that when the advertising effectiveness

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go up by 1 unit, the consumer buying decision making style also goes up by 0.155 units. In
addition, brand conscious consumer, quality conscious consumer, impulse buying consumer,
variety-seeking consumer and dissonance buying consumer had a greater impact on consumer
buying decision making style. It means that when the brand conscious consumer, quality
conscious consumer, impulse buying consumer, variety-seeking consumer and dissonance
buying consumer go up by 1 unit, the consumer buying decision making style also goes up by
0.156, 0.304, 0.175. 0.108 and 0.125 units.
Figure 1
EFFECT OF ADVERTISING ON CONSUMER BUYING DECISION MAKING STYLE
(SEM)

e. Kendall's Coefficient of Concordance test (Kendall's W test)

In order to study the significant difference in the mean rank of consumer preferences on
home appliances brand, Kendall's Coefficient of Concordance test is applied. Based on mean
rank, the most preferred brand by consumers for the purchase of home appliances is identified.
H03: There is no significant difference in the mean rank of consumer preferences on home
appliances brand.
H13: There is a significant difference in the mean rank of consumer preferences on home
appliances brand.
Table-6
Consumer Preferences on Home Appliances Brand
Home Appliances Brand Mean Rank Chi-square value P value
Samsung 2.15
LG 3.38
IFB 4.15 59.144 <0.001**
Whirlpool 1.24
Godrej 5.22

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Voltas 6.11
[Source: Primary data]
**
Note: Denotes significant at 1% level
Since P value is less than 0.01, the null hypothesis is rejected at 1 per cent level of
significance. Hence it is concluded that there is a significant difference among the mean rank of
consumer preferences on home appliances brand. Based on mean rank, the most significant
brand preferred by the consumer for the purchase of home appliances is Whirlpool (1.24),
followed by Samsung (2.15), LG (3.38), IFB (4.15), Godrej (5.22) and Voltas (6.11).
X. Findings
From the descriptive statistics, it is clearly learnt that the consumers have moderate
opinion on advertising of home appliances and have lack the consistency and precision in
decision-making about home appliances. Based on chi-square test, it is understood that there is
an association between consumers’ socio-economic factors, advertising effectiveness and
consumer buying decision making style. The multiple regression analysis has proven that 92 per
cent of consumers’ online buying behavior is affected by their perception on digital marketing
and its effectiveness. Based on the Kendall’s W test, it is found that there is a significant
difference among the mean rank of consumer preferences on home appliances brand.
XI. Suggestions
For any business organization, customers are considered to be precious assets. They play
a crucial role and the company will not to survive without them. Each business organization’s
primary goal is to connect its marketing mix with the consumer's decision-making style in order
to maintain current customers, attract more potential customers and sell their goods globally.
Based on the study, it is found that the consumers have moderate opinion on advertising of home
appliances and have lack the consistency and precision in decision-making about home
appliances. In order to improve their advertisement efficiency, it is therefore recommended that
marketers provide advertisement with accurate, reliable and full-fledged information about their
products and services. The study identified that there is a significant association between
consumers’ socio-economic factors, advertising effectiveness and consumer buying decision
making style. Hence, the marketers are advised to design and develop their marketing campaigns
by taking into account customers’ personal, socio-economic and cultural factors.
XII. Conclusion
In this technology world, home appliances become a part of life style and play a vital role
in day to day activities of the customers. Due to large number of competitors, influencing the
consumer buying decision with respect to home appliances is a big challenge for the companies.
Conversely, owing to the different alternatives available to consumers with regard to home
appliances, they are puzzled and could not make the right buying decision. Apart from quality,
price, distribution channels, promotional tools and other services, the companies have to fix the
right path to position their brand in the minds of customers. It is only through effective
advertising the company can able to transform the potential customers to existing and loyal
customers. Thus, it is implicated to the marketers to have 24*7 touch with their customers
through effective advertisement by keeping in minds of consumer’s demographic, social and

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cultural and in particular psychological factors. The study concluded that there is an effect of
effect of advertising on consumer buying decision making style. Hence, it is recommended for
the companies to deliver what is promised in their advertisement in order to influence the
decision making style of consumers.
XIII. Limitations of the Study
 The study is limited to effect of advertising on consumer buying decision making style
with respect to home appliances at Chennai city.
 The respondents of the study are limited to 100 consumers.
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