The Impact of Advertising on Consumer's New Product Acceptance

This report, prepared for BUSN20016, investigates the critical role of advertising in influencing consumer acceptance of new products. It begins by outlining the problem: the success or failure of new product launches often hinges on effective advertising strategies. The research aims to analyze this impact, setting objectives to understand factors affecting product acceptance, evaluate the relationship between advertising and acceptance, and recommend effective advertising approaches. The methodology employs a pragmatic and deductive research philosophy, using a descriptive research design and primary data collected via surveys from 100 customers. Quantitative data analysis, including statistical techniques like correlation and regression, is used to test hypotheses. The report explores the concept of advertising, its impact on customer acceptance, and its importance for new products, formulating hypotheses about the relationship between advertising effectiveness and product acceptance. The research is structured with a clear outline and a budget and timeline are provided. This report aims to provide actionable insights for businesses seeking to enhance their new product success through strategic advertising campaigns. References are provided at the end.

Running head: ADVERTISING AND NEW PRODUCT ACCEPTABILITY BY CUSTOMERS
A STUDY TO ANALYZE THE IMPACT OF ADVERTISING ON CONSUMER’S
ACCEPTABILITY OF NEW PRODUCT
Name of the Student:
Name of the University:
Author’s Note:

1ADVERTISING AND NEW PRODUCT ACCEPTABILITY BY CUSTOMERS
Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Problem Statement.....................................................................................................................3
3.0 Research Aim.............................................................................................................................4
4.0 Research Objectives and Research Questions...........................................................................4
5.0 Expected Results of the Research..............................................................................................5
6.0 Conceptual Framework and Hypotheses Development.............................................................6
6.1 Concept of Advertisement.....................................................................................................6
6.2 Impact of Advertisement of Customer’s Acceptability of Products......................................6
6.3 Importance of Advertisement for New Products...................................................................7
6.4 Hypotheses Formulation........................................................................................................7
7.0 Research Methodology..............................................................................................................8
7.1 Research Philosophy..............................................................................................................8
7.2 Research Approach................................................................................................................8
7.3 Research Design....................................................................................................................8
7.4 Data Collection Process.........................................................................................................8
7.5 Data Analysis Method...........................................................................................................9
7.6 Statistical Methods.................................................................................................................9
8.0 Research Outline........................................................................................................................9
9.0 Budget and Timeline................................................................................................................10
References......................................................................................................................................12

2ADVERTISING AND NEW PRODUCT ACCEPTABILITY BY CUSTOMERS
1.0 Introduction
As stated by Chen et al. (2019), the business corporations in order to enhance the scope
of their product portfolio and also to mitigate that adverse effect of the fierce business
competition that they face within the business markets of their operation often take the help of
the process of new product development. Marino et al. (2017) are of the viewpoint that process
of new product development undertaken by the corporations should be dictated by the results of
the market analysis conducted by the corporations so as to gain an effective idea about the
customer needs, demands, tastes, preferences and other attributes. More importantly, the
corporations are also required to take the help of adequate advertisements or promotional
campaigns for influencing the customers to purchase the new products offered by them
(Evangeline & Ragel, 2016). Adding to this, Aghaei and Naeini (2018) have noted that the
business corporations which take the help of effective advertisement or promotional measures
have a far better change to enhance the customer’s acceptability of the new products offered by
them and vice versa. Thus, it can be said that the different advertisements used by the business
corporations are an essential tool to facilitate the sale and thereby the success of the new
products or the services that they frequently launch in the business market of their operation.
2.0 Problem Statement
Ham, Park and Park (2017) are of the viewpoint that the success or for that matter the
failure of the new products offered by the business corporations depends on a plethora of factors
like the advertisement strategy, the product development process, the product strategy,
distribution strategy, pricing strategy and others. However, as discussed by Arunachalam et al.
(2019), the problem arises because the majority of the business corporations either gives too

3ADVERTISING AND NEW PRODUCT ACCEPTABILITY BY CUSTOMERS
much importance or too less importance to the process of advertising for the marketing of the
new products offered by them. Thus, by specifically focusing on the role that advertising plays in
enhancing customer’s acceptability of the new products the research will highlight the manner in
which the business corporations needs to use the same so as to attain the required amount of
success for the new products offered by them.
3.0 Research Aim
The aim of this research is to analyze the impact of advertisement and promotion on the
acceptability of the new products or services by the customers.
4.0 Research Objectives and Research Questions
The research objectives on which the study would focus on are elucidated below-
1. To understand the factors which affect the acceptability of a new product or service by
the customers
2. To evaluate the relationship between advertising and the acceptability of a new product
or service by the customers
3. To recommend ways through the business corporations can effectively use advertising for
enhancing the customer’s acceptability of the new products or services
The research questions that the study would focus on are elucidated below-
1. What are the factors which affect the acceptability of a new product or service by the
customers?
2. What is the relationship between advertising and the acceptability of a new product or
service by the customers?

4ADVERTISING AND NEW PRODUCT ACCEPTABILITY BY CUSTOMERS
3. What are the ways through the business corporations can effectively use advertising for
enhancing the customer’s acceptability of the new products or services?
5.0 Expected Results of the Research
The researcher after undertaking an analysis of the different peer-reviewed articles and
scholarly works found that the advertising or for that matter the promotional strategies used by
the business corporations is an important factor which influence customer’s acceptability of the
new products offered by them. Furthermore, the researcher also found that the business
corporations need to align the advertisements that they are using for the advertisement of the new
products offered by them with the preferences, tastes, psychology of their target market so as to
achieve the best possible results.
The researcher also found that although a substantial amount of research had already
been conducted on the importance of advertisement or promotion for business corporations yet
very few researches have been conducted on the role played by the same in the particular context
of new products. Therefore, it is likely that this particular research will add value to concerned
discipline and the future researchers will have the opportunity to use this research as a
framework for the conduct of further research. Moreover, the research will also elucidate the
manner in which the business corporations can take the help of the process of advertising for
enhancing their customer’s acceptability of the new products offered by them. The researcher
intends the answer the research questions that had been formulated on the basis of the results
derived from the primary data which would be collected for the completion of this study.

5ADVERTISING AND NEW PRODUCT ACCEPTABILITY BY CUSTOMERS
6.0 Conceptual Framework and Hypotheses Development
6.1 Concept of Advertisement
Selvanayagam and Ragel (2015) are of the viewpoint that advertisement is the process
through which the business corporations try to effectively promote or for that matter market the
products or the services which are being offered by them. Adding to this, Patwardhan and
Patwardhan (2016) have noted that in the different advertisements created by the business
corporations it is seen that they try to highlight or for that matter elucidate the positive aspects of
the products offered by them or the benefits that the users would derive through the use of the
same. On the other hand, Evangeline and Ragel (2016) have suggested that the profitability or
the sales volume of the different products offered by the business corporations greatly depends
on the effectiveness or for that matter the efficiency of the advertisements used by them for the
promotion of the same. The business corporations are thus required to create the kind of
advertisements which would not only be creative or appealing in nature but also appeal to the
rationale or the thought process of the customers as well.
6.2 Impact of Advertisement of Customer’s Acceptability of Products
According to Marino et al. (2017), an important purpose of the different product related
advertisements used by the business corporations is to cascade the required product related and
also the brand related information to the end users. Adding to this, Ham, Park and Park (2017)
have noted that the advertisements created by the business corporations needs to effectively
capitalize on the tastes, needs, preferences and other attributes of the target market that they are
focusing upon for them to be effective. More importantly, it had been seen that the
advertisements used by the business corporations are important factors which influence the
customers to purchase the same (Arunachalam et al., 2019).

6ADVERTISING AND NEW PRODUCT ACCEPTABILITY BY CUSTOMERS
6.3 Importance of Advertisement for New Products
As discussed by Patwardhan and Patwardhan (2016), the process of advertising becomes
especially important from the perspective of the new products launched by the business
corporations since it offers the opportunity to the corporations to utilize their brand image to
effectively promote the new products. Chen et al. (2019) are of the viewpoint that the customers
generally like to purchase the kind of products about which they have adequate idea and thus the
tool of advertising by helping the corporations to cascade the required product related
information to the customers helps them to influence the purchase intentions of the customers. In
addition to these, the usage of the process of advertising for the promotion of new products
enables the corporations to create an image of the concerned products which in turn facilitate the
acceptability of the same by the customers (Aghaei & Naeini, 2018).
6.4 Hypotheses Formulation
On the basis of the keys propounded in the literature review, the researcher had
formulated two hypotheses for the conduct of this study which are listed below-
H1- The effective usage of advertisements facilitates the customer’s acceptability of the new
products offered by the business corporations
H0- The effective usage of advertisements does not facilitate the customer’s acceptability of the
new products offered by the business corporations

7ADVERTISING AND NEW PRODUCT ACCEPTABILITY BY CUSTOMERS
7.0 Research Methodology
7.1 Research Philosophy
Pragmatic research philosophy would be used by the researcher in the particular context
of this study. As discussed by Walliman (2017), the pragmatic research philosophy is the one
wherein the researchers need to take the help of different perspective since one perspective
cannot help them to effectively address the research objectives.
7.2 Research Approach
Deductive research approach would be used by the researcher in the particular context of
this study. Quinlan et al. (2019) have stated that the researchers using the deductive research
approach generally use different observations, theoretical concepts, statistics and others for
testing the validity of the hypotheses formulated by them.
7.3 Research Design
Descriptive research design would be used by the researcher in the particular context of
this study. According to Taylor, Bogdan and DeVault (2015), this design helps the researchers to
correlate the research objectives formulated by them with the findings derived from the analysis
of the data collected by them.
7.4 Data Collection Process
Primary data collection process would be used by the researcher in the particular context
of this study. The researcher will collect primary data from 100 customers through the usage of
the research tool of survey to understand the influence of the advertisements on their decision to
purchase new products.

8ADVERTISING AND NEW PRODUCT ACCEPTABILITY BY CUSTOMERS
7.5 Data Analysis Method
Quantitative data analysis method would be used by the researcher in the particular
context of this study. This choice of data analysis method had been influenced by the decision of
the researcher to use primary data.
7.6 Statistical Methods
The researcher for the analysis of the primary data would take the help of different
statistical techniques like correlation, regression, ANOVA and others. The usage of these
techniques would not only help the researcher to understand the correlation between the
variables that had been selected for analysis in the study but also test the validity of the
hypotheses formulated for the conduct of the study as well.
8.0 Research Outline
The detailed structure that the researcher will follow is elucidated below-

9ADVERTISING AND NEW PRODUCT ACCEPTABILITY BY CUSTOMERS
Figure 1: Research Outline
Source: (Created by the Author)
9.0 Budget and Timeline
The budget that would be needed for the conduct of this research along with the
associated activities is elucidated below-
Purpose Budget Activities
Literature Review $500 The purchase of the textbooks and journal articles
which are not available for free over the internet
Data Collection $1000 Purchase of secondary data from the online
libraries and journals
Data Analysis $500 Purchase of Software like SPSS and others
Total Cost $2000
The detailed timeline which would be followed by the researcher for the conduct of this
particular study is elucidated below-

10ADVERTISING AND NEW PRODUCT ACCEPTABILITY BY CUSTOMERS

11ADVERTISING AND NEW PRODUCT ACCEPTABILITY BY CUSTOMERS
References
Aghaei, S., & Naeini, A. (2018). Consumer attitudes toward new pasta products in Iran market:
A qualitative and quantitative study. Management Science Letters, 8(2), 109-120.
Retrieved from 10.5267/j.msl.2017.11.005
Arunachalam, S., Bahadir, S. C., Bharadwaj, S. G., & Guesalaga, R. (2019). New product
introductions for low-income consumers in emerging markets. Journal of the Academy of
Marketing Science, 1-27. Retrieved from
https://link.springer.com/article/10.1007/s11747-019-00648-8
Chen, Q., Feng, Y., Liu, L., & Tian, X. (2019). ‘Understanding consumers’ reactance of online
personalized advertising: A new scheme of rational choice from a perspective of negative
effects. International Journal of Information Management, 44, 53-64. Retrieved from
https://www.sciencedirect.com/science/article/pii/S026840121830433X
Evangeline, S. J., & Ragel, V. R. (2016). The role of consumer perceived fit in brand extension
acceptability. IUP Journal of Brand Management, 13(1), 57. Retrieved from
https://search.proquest.com/openview/e57b1a18f1f819ff7a8b484c036649a4/1?pq-
origsite=gscholar&cbl=2029986
Ham, C. D., Park, J. S., & Park, S. (2017). How US consumers respond to product placement:
Cluster analysis based on cognitive and attitudinal responses to advertising in
general. Journalism & Mass Communication Quarterly, 94(4), 943-971. Retrieved from
https://journals.sagepub.com/doi/abs/10.1177/1077699016669105