Impact of Digital Advertisements on Consumer Purchasing Behavior

This report examines the significant influence of digital advertisements on consumer purchasing behavior, particularly within the Indian market. It explores the role of various digital marketing techniques, including social media and online platforms, in shaping consumer decisions. The research analyzes case studies of companies like Flipkart, Red Chillies Entertainment, Bajaj, and Reliance Jio India to understand how they leverage digital advertising to enhance brand awareness, engage customers, and ultimately drive sales. The report delves into the importance of understanding consumer demographics and preferences to tailor marketing strategies effectively. It also addresses the problem of lack of awareness due to ineffective digital advertisement management and recommends measures for improving digital marketing efficiency and expanding customer bases. Furthermore, the literature review highlights the evolution of advertising concepts and their impact on consumer behavior, emphasizing the importance of adapting to changing market dynamics and technological advancements.

0
ADVERTISEMENTS ON CONSUMER PURCHASING BEHAVIOUR
Effect of Digital Advertisements on Indian Consumers Purchasing Behaviour
Mayank Choubey
Webster University

1
ADVERTISEMENTS ON CONSUMER PURCHASING BEHAVIOUR
Table of Contents
Chapter 1: Introduction 2
1.0 Research background 3
1.1 Problem statement 4
1.2 Aim of the research 5
1.3 Research objectives 6
1.4 Research questions 6
1.5 Research design and method 7
Chapter 2: Literature review 7
Chapter 3: Research methodology 17
Chapter 4: Analysis 19
Chapter 5: Conclusion 22
Recommendations 23
Conclusion 24
References 25

2
ADVERTISEMENTS ON CONSUMER PURCHASING BEHAVIOUR
Chapter 1: Introduction
The concept of managing digital advertisements is associated with the marketing
activities carried out by the business organisations for the purpose of influencing the
purchasing behaviours of consumers. Nowadays, with the advent of new technologies and
better communication processes, the business organisations have used different media
channels and managed digital advertising for the purpose of promoting the products and
services along with the development of new mediums for allowing the customers to gain
information and knowledge about the products and services delivered (Malik et al., 2013).
This will influence their purchasing behaviours and at the same time, encourage them to
make decisions regarding the purchase of these products and services. The increase in new
products available in the market has helped in various advertisements and promotions
managed by the businesses to motivate the people regarding their purchasing behaviours
(Solomon Dahl, White, Zaichkowsky & Polegato, 2014). This will also allow the customers
to gain deep insight about the company’s brand and products and then check whether their
needs and requirements will be fulfilled or not, based on which they will make purchase of
the products or services.
The multi case study design was used here considering the business organisations
named Flipkart, Red Chillies Entertainment, Bajaj, and Reliance Jio India. All these
companies have used digital marketing and promotional campaigns for the purpose of
exploiting the growth scopes and opportunities, which can assist in enhancing the level of
awareness among the customers, furthermore, gain unprecedented success within the
competitive business environment efficiently (Kumar & Raju, 2013).

3
ADVERTISEMENTS ON CONSUMER PURCHASING BEHAVIOUR
The research focuses on the digital advertisements managed with the help of using
digital platforms and even with the help of social media platforms for influencing the
consumer buying behaviour and at the same time, ensure that customers gain positive mind
set about the brand and its products, based on which, their purchasing behaviours will be
influenced. The perceptions’ of the brand and its products along with awareness about the
products and services are spread among the customers, which allow for gathering necessary
information and knowledge, furthermore, drive the buying behaviours of consumers to a
largest level possible (Pate & Adams, 2013). Therefore, the research study will highlight the
importance of digital advertisements that can shape the behaviours regarding purchases made
by the consumers and also provide deeper insight about the role of digital advertisements in
influencing the purchasing decisions effectively too. The engagement of social media
platforms can further boost the brand awareness with the help of promoting the products and
services, furthermore, enhance the level of awareness along with influencing their buying
behaviours too (Raheem, Vishnu & Ahmed 2014).
1.0 Research background
The background of research highlights the importance of managing digital
advertisements for promoting the products and services on online platforms as well as
through digital media for promoting the brand and make people believe how their needs and
requirements can be fulfilled by making purchases of the product (Wei & Lu, 2013). The
background of the study will also help in understanding the behaviours of consumers and
ensure that the companies prioritise on the implementation of the most suitable strategy for
advertising the products and services in an effective way.
Stephen, in the article “The role of digital and social media marketing in consumer
behaviour” stated that digital advertisements have radically influenced the buying behaviour

4
ADVERTISEMENTS ON CONSUMER PURCHASING BEHAVIOUR
and decisions about the effectiveness of digital advertisements and social media marketing
for positively influencing the buying behaviours of consumers effectively too (Stephen,
2016).
According to Goh, Heng, and Lin (2013), and the researcher’s title “Social media
brand community and consumer behaviour : Quantifying the relative impact of user-and
marketer-generated content”, it has been understood that the digital advertisements has been
further boosted with the engagement of social media platforms, which increased awareness
among the clients and at the same time, facilitate the purchasing behaviours of consumers,
thereby, resulted in presenting a positive brand image along with the products and services
delivered by the brand (Goh et al., 2013).
Considering the propositions of Jin and Phua (2014), the digital advertisements have
helped in electronic word of mouth promotions and at the same time, allowed the business
organisations to engage the tweets of celebrities about the products and services on the social
networks to create an impact on the perceptions of the consumers, ensured social
identification with the brand on which the tweet has been made, furthermore, influence the
purchasing behaviours of customers largely too (Jin & Phua, 2014).
The concept of digital advertisements and promotions has been a major driving factor
that affects the buying behaviours and decision making process from the perspectives of the
customers. (Wei & Lu, 2013).
1.1 Problem statement
The problem statement is the lack of awareness that has emerged due to the lack
of managing the digital advertisements properly. The advertisements and promotional
activities serve these purposes and can allow the business organisations to gain greater

5
ADVERTISEMENTS ON CONSUMER PURCHASING BEHAVIOUR
outreach to the clients, furthermore, encourage the customers to make purchases from the
organisation effectively as well (De Mooij, 2019). This has often been a major cause, due to
which, the businesses have failed to generate a positive brand image and identity, which also
resulted in poor loyalty among the customers towards the brand, thereby, weakened the
ability to draw in enough clients and influence their buying behaviours. It is also a true fact
that though there are multiple analytical sources, still every of these sources does not
determine the psychology of buying behaviours of customers and their purchases made
repetitively. Based on the statement of the problem, it has also been found that the different
types of digital advertising such as the banner advertisements, email marketing, social media
marketing, all are essential components of the digital marketing that have already the
companies such as Flipkart, Red Chillies Entertainment, Bajaj and Reliance Jio India to the
customers’ targeting methods or techniques (Romaniuk & Nenycz-Thiel, 2013). The digital
advertisements have also managed dual communication process between both the advertisers
as well as the customers, which has helped in grabbing the attention of the customers much
more comprehensively. The digital advertisements are quite easily transferrable as well as
deliver the right messages and information to the targeted audiences, which could also ensure
ease of influencing their behaviours regarding purchase and buying decisions too (Stephen,
2016).
1.2 Aim of the research
The research aims at determining the impact created with the use of digital
advertisements as part of the marketing approach to influence the buying behaviours and
purchasing decisions made by the customers considering the multi case study design of Red
Chillies Entertainment, Flipkart, Bajaj and Reliance Jio India.

6
ADVERTISEMENTS ON CONSUMER PURCHASING BEHAVIOUR
1.3 Research objectives
● To identify the probable impact of managing the digital advertisements by businesses
to influence the buying behaviours of customers in India and encourage purchasing
decisions as well
● To evaluate the various digital marketing approaches and techniques associated with
the businesses based on the demographic profiles of the Indian customers
● To assess the major effects caused with the implementation of this digital marketing
strategies on the transfer and exchange of information about the products between the
business and its clients
● To recommend necessary measures by which, the companies can facilitate the digital
marketing and promotional techniques for creating a larger customer base in India
1.4 Research questions
● How can the companies create a major impact on the buying behaviours of the
consumers with the help of digital advertisements and promotions in India?
● What are the different types of digital marketing techniques that can allow for transfer
of information and messages regarding the brand and its products to the customers for
influencing their buying behaviours?
● How could the assessment of demographic profile of customers help in better sharing
and exchange of information between the business and its clients in India?

7
ADVERTISEMENTS ON CONSUMER PURCHASING BEHAVIOUR
● What are the necessary measures recommended for improving the digital marketing
efficiency and generate huge numbers of customers by influencing their purchasing
habits largely?
1.5 Research design and method
Considering the fact that the research is based on the qualitative data, the exploratory
study has been followed here to draw information and data prior to conducting the research
on the effect of digital advertisements on the buying behaviours of the customers in India
(Malik et al., 2013). There is no need to collect primary data, rather the secondary data
collection has been the focus of the research, because of which, it is considered as a
qualitative study that can both determine the cause as well as the effect of these digital
marketing approaches adopted by the companies.
The data and information have been gathered from the secondary sources of data
including the journals, articles, newspapers, magazines as well as the websites containing
relevant information about the research study. Though there is no need to carry out the survey
process, in some cases, few of the people of the organisations can be interviewed for
collecting authentic data and information that can create new scopes and horizons for the
research to be conducted much more fruitfully (Jamshed, 2014).
Chapter 2: Literature review
According to Godey et al. (2016), it has been believed that the effects of digital
advertisements are immense and it has shifted the buying behaviours of consumers as well as
enhanced the effectiveness of marketing and promotions for specific brand products in the
competitive marketplace nowadays. The research study will be done on the basis of
qualitative data and secondary data, which can prove to be beneficial for determining how

8
ADVERTISEMENTS ON CONSUMER PURCHASING BEHAVIOUR
these kinds of advertisements have helped in conveying the right messages and information
about the products to its customers and at the same time, met their demands and expectations
in the marketplace (Godey et al., 2016).
Buil et al. (2013), on the other hand, argued about the demographic profiles of customers
and their buying preferences, which have often changed from time to time and with multiple
companies in the business environment, they can switch on to some other company other than
their preferred brand any time. The marketing methods and techniques are managed by
businesses with the priority, being the focus on the targeted customers in the market segments
and how their buying behaviours are to be influenced (Buil et al., 2013). The digital
marketing activities via promotions and advertisements have not only helped in
understanding the needs of customers, but has also strengthened the relationship between the
brand and its customers, which are associated with influence of customers behaviours
regarding purchase of products and services. With the advancement of technology and
communication processes, the Internet has played a major role is managing these kinds of
advertisements’ that can easily grab the attention of customers and more likely, allow them to
gain access to the company products quite easily (Kim & Johnson, 2016).
The introduction of e-commerce and online purchases made by the customers has further
boosted the marketing performance with the engagement of email marketing and also with
the help of social media marketing. Solomon et al. (2014) also stated that with the rapid usage
of social networks such as Facebook, Twitter and Instagram, the companies in India have
shaped the marketing stricture and activities by integrating those with the online platforms
which has allowed for better exchange and sharing of information about the products and
services to the customers. The digital marketing techniques supported two way
communication process, i.e., between the business and its customers, which also strengthened

9
ADVERTISEMENTS ON CONSUMER PURCHASING BEHAVIOUR
the relationships between the two and resulted in influencing their purchasing behaviours and
decision largely (Solomon et al., 2014). Thus, a positive impact has been created on the
business through acquisition of more customers, enhancement of brand visibility and creating
awareness among the clients for ensuring higher sales revenue and attainment of competitive
advantage as well.
2.1 Importance of advertisements concept
According to Buil et al., (2013), the advertising concept in general is an effective
form of marketing communication that allows for transferring messages and information
about the kind of products and services delivered by a brand to the customers and make sure
to influence their buying habits and purchasing decisions. This has helped in the creation of
awareness among the people, thereby, assisted in concentrating on different target markets for
influencing the buying behaviours of people. The aim of the advertisements and promotions
in general is to transfer the right messages and information to the clients, furthermore, suit the
cultural requirements by informing the customers about the products and services to be
delivered (Buil et al., 2013). This has helped in attracting new customer as well as acquire the
existing customers for the purpose of influencing their buying behaviours and encourage
them to make decisions regarding purchases of products and services effectively. Considering
the theory of Mediation of reality, it has been found that the advertisements are successful
once these have been integrated with some forms of media, especially the online platforms,
which has the ability to ensure that the content of the advertisement is persuasive (De Mooij,
2019). Following the theory, the digital advertisements are likely to bring expansion of
outreach to the customers, thereby, influence their buying behaviours too.

10
ADVERTISEMENTS ON CONSUMER PURCHASING BEHAVIOUR
The introduction of a new product by a brand requires proper marketing approaches
for the management of promotions and advertisements done with the help of mass media
including televisions, newspapers, magazines and radio broadcast. This has the ability to
increase the reach of marketing messages and information to the clients perfectly and at the
same time, facilitate the brand promotions and market outreach much comprehensively. The
purpose of advertisements, in general, has also been to develop familiarity among the clients
with the brand which has the potential to save a significant amount of cost as well as ensure
that the customers aware of the products and services offered by the brand. The advertising is
somewhat different from the personal selling, which has enabled communication of messages
and information that the advertiser has control over and even has paid for to ensure awareness
among the clients largely (Godey et al., 2016). Not only does the advertisements and
promotional activities involve use of magazines, newspapers, television and radio, but also
the outdoor advertising, direct mail, social media platforms and websites have promoted the
products and services effectively in the market for influencing the consumers’ buying
behaviours.
As stated by Goh et al.(2013), the commercial advertisements are aimed at enhancing
the consumption of products and services through the management of branding concepts and
by aligning the brand image and identity with the features and qualities of the products
formed in the minds of the consumers (Goh et al., 2013). The non-profit organisations have
also used the free modes of persuasion such as making public service announcement and
according to Kim & Johnson (2016), the advertising activities have assured the shareholders
or investors to gain good amount of return on investments made. The digital advertisements
have slowly gained pace in facilitating the online marketing and at the same time, encouraged

11
ADVERTISEMENTS ON CONSUMER PURCHASING BEHAVIOUR
people to adopt online behaviours while making purchase if the products and services (Kim
& Johnson, 2016).
2.2 Advertising in India
According to Kim & Johnson (2016), the advertising in India has been vastly
influenced by mobile marketing activities, which has further been supported by the
widespread mobile usage by the Generation Y individuals. In India, the use of smart phones
has resulted in making people use various mobile based applications and form interaction
with the brand and its products furthermore. Jin & Phua (2014) also argued the fact that the
targeted group of audiences are basically the GenY customers, who have been habituated
with the usage of smart phones and this has influenced the behaviours of customers towards
in-app advertising and branded applications too. Considering the impact of advertisements on
the buying behaviours of the consumers, the mobile marketing has gained popularity with the
mobile market expected to gain an increase in the subscriptions made with the use of
smartphones (Jin & Phua, 2014).
From the statements of Kumar & Raju (2013), it has also been found that the use of
these smartphones has increased in India, which has also enabled the marketers to
communicate with the customers consistently and determine their behaviours regarding
purchases made. The theory of Shifting loyalties has been considered by the companies as
well for the purpose of developing higher brand loyalty among the customers, thereby, enable
the customers to shift their loyalties and preferences towards a specific brand in the
marketplace (Kumar & Raju, 2013). With the management of digital advertisements, it has
also become much easier for the companies to present the brand messages and information
about the products properly, furthermore, ensure extensive distribution and promotions of the