Management

ISSN: 2091-0460 Dynamics 63

Vol. 23, No. 1: 63-84, 2020
Shanker Dev Campus
Doi: https://doi.org/10.3126/md.v23i1.35661

Impact of advertisement and price on

consumer purchase decision
Binita Manandhar*
Abstract
Advertisement and price play crucial role in consumer buying behavior. The purpose of this study
is to measure the impact of advertisement and price in consumer buying behavior. The data were
collected by questionnaires using convenient sampling, a sample 400 questionnaire were distributed
and 370 complete questionnaires were received from the respondents. Data were analyzed by using
different statistical technique such as descriptive static, correlation analysis and regression analysis.
The findings of the study showed that advertisement and price have significant impact on consumer
purchase decision. Gender and academic qualification were also included as moderating variables and
found no significant influence of such variables on consumer purchase decision.

Keywords: Advertisement, Price, Consumer buying behaviour

Introduction
Background
The buying behavior of consumer has become an important issue in modern marketing since
the ultimate aim of marketing is consumer satisfaction and profit making. The success or failure
of marketing system depends on the buying behavior of the target customers considered
individually or as a group. The marketing management must find out the different factors
influencing buying decisions of the consumer to undertake the marketing programs among
different market segments. Consumer behavior is physical activity, mental and emotional
people do when select, purchase, use and dispose of goods and services to satisfy their needs.
Consumer behavior is described as series of activities directly toward the acquisition use and
disposal of goods and services occurs. These activities include the decisions that are made
before and after the procedure (Haghshenas et al., 2013).

Advertisement plays crucial role in marketing as it is taken as powerful strategy to attract

the customers towards the product. Advertisement is leading weapon in marketing tool
due to its positive impact on consumers’ buying behavior. Advertisement is effective way to
communicate and convey the message to the customers and promote the product (Malik et
al., 2013). Marketing mix has four subsets such as product, price, place and promotion and

* Lecturer Mail: [email protected]

 64 Management Dynamics, Vol.23, No.1, 2020 ISSN: 2091-0460

advertising is a component of promotional mix, which is used to create awareness about the
product to take purchase decision (Naizi et al., 2012).

Consumers use prices as an indicator for quality of the product. Imaging pricing is especially
effective with expensive product such as expensive cars etc. (Kotler & Amstrong, 2014).
Shrestha (2018) found price had no effect on purchase of baby diaper products. Price did not
effect on pouch milk purchase (Shrestha, 2019).

Research objectives
• To identify the factors influencing consumer purchase decision
• To measure the impact of advertisement on consumer purchase decision
• To analyze the influence of price in consumer purchase decision

Hypothesis
Based on conceptual framework and the research questions following hypothesis have been
developed for the study.

H1: Advertisement has significant relationship with consumer purchase decision

H2: Price has significant relationship with consumer purchase decision
H3: Gender moderates significantly relationship to consumer purchase decision
H4: Academic Qualification moderates significantly relationship to consumer purchase decision

Research questions
Followings are the questions attempted to enquire in this research.

• What are the factors influencing consumer purchase decision?

• Does advertisement impact on purchasing behavior of the buyers?
• What is the importance of price in purchasing decision of the buyers?

Limitations:
This research is concentrated purchase behavior of consumers on limited consumer goods
mainly grocery product.
• Kathmandu city is taken for the study
• Convenience sampling is followed for the study

Issue of the study

The study of consumer behavior has become very important for the marketers to understand
and predict buying behavior of the consumers in the market. It is concerned with what, why,
when, where and how often they buy and dispose after using them. Research shows that
two different buyers buying the same product for different purposes, paid different prices,
used in different ways, have different emotional attachments towards the things (Brosekhan
& Velayutham, 2013). There is limited research in marketing in Nepalese context and it is
ISSN: 2091-0460 Impact of Advertisement and Price on Consumer Purchase Decision 65

rarer in the case of consumer behavior. Identifying the factors and its effect on consumer
buying behavior would give new dimension to Nepalese marketer to understand the buyers’
behavior. Few researches have been conducted in influence of advertisement and price on
buying behavior for purchasing consumer goods. Rai (2013) researched entitled an impact of
advertisement on consumer behavior and attitude with reference to consumer durables. The
focus of the study was to identify the influence of advertisement on consumer behavior and
attitude towards consumer durables. The research concluded that advertisement motivates
consumers to materialize the purchase of durable goods and influence attitude and behavior
of consumer.

Literature review
Conceptual review
Advertisement
Nobody can’t be escaped from the wide influence of mass media such as newspaper,
television, advertising, movies, music, magazines and internet etc. in today’s competitive
world. Advertisement is a great source for promoting the business in the whole market
which has become an important issue to build up the product’s strong image in consumer’s
mind. Advertisement is regarded as one of the most powerful and effective promotional tools
to reach customers which gives information, persuade, reminds and convinces as well as
creates a brand image on the buyers of the product (Sumathi & Begum, 2016). Advertising
is considered as the best way to communicate consumers and convince them towards their
products and also considered as long lasting tool to set image on consumer’s mind regarding
any idea or product (Abideen et al., 2011). Rafique (2012) argued that buying behavior of
people is highly influenced by culture because people have different wants and trends
according to their lifestyle and which are changed by the advertisement and also creates the
needs among them. Advertisements are the source of motivation that forces the people to buy
a particular product and also builds the trust and purchase attitude by product evaluation
and brand recognition through the advertisement because the consumers are looking for the
quality and prices of the product (Rai, 2013).

Price
Price and quality of product are central issue in today’s marketing environment not only
for consumers but also for producers to make decision regarding their products. Customers
generally perceive price as an indicator of product quality and evaluate the cost in terms of
perceived benefit derived from the competition of the offering. Price can change an attitude of
customers for purchasing decision (Alfred, 2013). According to Kotler and Armstrong (1996)
price is an element in marketing mix which produces revenue. Price is the amount for which
product, service or an idea which is exchanged or offered for sale regardless of its worth or
value to potential.

Consumer purchase decision

Purchase decision is an act or behavior of consumer for making a purchase or transaction
(Kotler & Armstrong, 2014).
 66 Management Dynamics, Vol.23, No.1, 2020 ISSN: 2091-0460

Review of empirical study

Pal and Pal (2019) analyzed the effect of advertisement on consumer behavior. The major
objective of the study was to examine the effect of advertisement on consumer buying behavior.
The dependent variable was consumer buying behavior and the independent variables were
online advertising, familiarity with product, brand image and mode of advertisement. This
study showed a significant influence of advertisement on consumer buying behavior. It
also explained about the information provided by the advertisement on price discount and
product information which are also followed by the consumers.

Sunderraj (2018) measured an impact of advertisements on buying behavior of consumers

in Sivakasi. The major objective was to study the impact of advertisements on buying
behavior. The independent variables were advertisement, age, income and education and the
dependent variable was buying behavior. This study indicated that impact of advertisement
remains same at the different age level of the students and it also discloses good features of
the products and that will help the consumer to take better decision.

Shafi (2017) analyzed on impact of advertisement on consumer behavior. A case study was
made with reference to Ponnani Municipality in Kerala. The objective of the study was to
examine the good effects of advertisement on customers. The variables were taken for the
study such as level of satisfaction, preference pattern of consumer, education, income level,
age and gender. The study found that females spend more on cosmetics and the students
are deeply influenced by the advertisement to consume novel variety of goods. The study
showed the advertisement as the most influencing factors in consumer behavior which
provides information and reminds about the product to the consumers.

Ammoura (2016) measured an impact of media advertising on consumer buying behavior.

The major objective of the study was to investigate the impact of media advertising on
consumer buying behavior. The independent variables were media advertisements, online
advertisements and TV advertising and the dependent variable was consumer buying
behavior. It was found that right and proper websites was important as the target market such
as age, gender, lifestyle, literacy, tasks, likes, dislikes, preference, expectations, needs and
demands. Otherwise target customers ignores the advertisements. This study also indicated
that informative and effective advertisements influence the buying decisions.

Dulin (2016) studied on the impact of advertising on consumer buying behavior. The major
objective of the study was to determine the different advertising techniques affecting the
consumer buying behavior. The dependent variable was consumer buying behavior and the
independent variables were advertising, product feature, and quality of product, first entry
of product, popularity and familiarity of product. The study also showed the influence of
information from advertising and emotional appeal, promotional advertising on consumers.

Anjum et al. (2015) measured the impact of television advertisement on consumer buying
behavior. The major objective of the study was to examine the role of religiosity to change
relationship between television and advertisement and consumers’ buying behavior. The
study was conducted in the context of Pakistan. It was found that television advertisements
ISSN: 2091-0460 Impact of Advertisement and Price on Consumer Purchase Decision 67

make the people aware with the products and gives knowledge as well as create interest on
the consumers about a particular product and help them to make purchase decisions for the
products.

Arshad et al. (2014) measured an impact of effective advertising on consumer buying behavior.
The objective of the study was to examine the generation of emotional responses after watching
effective advertisements that persuade consumer purchase behavior. The study showed that
effective advertising is the major source to generate sensations that motivates the consumers
to buy advertised mobile phone sets. Ampofo (2014) analyzed the effects of advertising on
consumer buying behavior. The main objective of the study was to examine the effects of
advertising on consumer buying behavior. The dependent variable was consumer’s purchase
decision and the independent variables were advertising, income, price, cosmetic brand and
other’s recommendation. It was found that advertising influences on the purchase decision
for cosmetic products. The study explained that discounted price also influence consumer’s
purchase decision for cosmetic products.

Rai (2013) measured an impact of advertising on consumer behavior and attitude with
reference to consumer durables. The major objective of the study was to identify the influence
of advertisements on consumer behavior and attitudes to consumer durables. The dependent
variable was consumer buying behavior and the independent variables were advertisement
and attitudes of consumers. It was found that there was an impact of advertisement on
consumer buying behavior and also formed attitude towards product purchasing.

Priya et al. (2010) researched on television advertisement and children’s buying behavior.
The major objective of the study was to analyze the impact of children’s attitudes towards
television advertisement on their buying behavior. The study found that the advertisement
influence the demand for the advertised product and explained about the cognitive changes
among the different age groups of the children that leads to forming different attitudes
towards the advertisements.

Martier et al. (2002) researched on an empirical investigation of infomercials and advertising

effectiveness. The objective of the study was to examine the influence of advertisement on
perception of infomercial advertising effectiveness. The study was done to examine the factors
that influence the infomercials elements on six products types such as fitness machines and
skin care cosmetics. It was found that expert comments, demonstration, product comparison
and bonus offers are the main factors that can make infomercials more effective. It was also
seen that age is another factors that impact on the view of consumer towards infomercials. The
research showed that the consumers with 40 plus age perceives infomercials advertisement
more effective than younger consumers and infomercial makes the consumers think about
advertised product and perceived more effectively.

Mashao and Sukdeo (2018) investigated on factors that influence consumer behavior in the
purchase of durable household products. The major objective was to analyze the consumer
 68 Management Dynamics, Vol.23, No.1, 2020 ISSN: 2091-0460

buying behavior of frequently purchased durable products and to determine the main factors
to consumers’ buying behavior for durable products. The researcher has taken Television,
Refrigerator, Stove, Product feature and Furniture. The dependent variable was purchase of
durable products and the independent variables were price, perceived quality, brand image
and advertisement. The study found that consumer preferences changes with a variety of
durable goods. The study showed a bit of balance between cost price and quality as considered
factors for purchasing refrigerator. The study concluded that features, price and quality were
found to be the most dominating factor that influence the consumer buying decision for
durable goods.

Kusumah (2015) analyzed the effect of trust, price, quality and perceived risk towards
consumer purchase behavior in online shops Instagram. The major objective of the study
was to identify the influence of trust, price, quality and perceived risk towards consumer
purchase decision. The independent variables were trust, price, quality and perceived risk
and the dependent variable was consumer purchase decision. According to the study demand
of products depends on the consumer purchasing power and price is found as an absolute
factor in consumer purchase behavior.

Zhou and Gu (2015) researched on the effect of different price presentations on consumer
impulse buying behavior: the role of anticipated regret. The major objective of the study was
to measure the effect of different price presentations on consumer impulse buying behavior.
The independent variables were price presentation and anticipated regret and the dependent
variable was impulse buying intention. It was found the form of price presentation (based on
the amount of money or percentage off) has a significant impact on consumer impulse buying
behavior. The study found that price discounts based on the amount of money could arouse
more willingness to buy.

Dhurup et al. (2014) measured the impact of packaging, price and brand awareness on
brand loyalty: Evidence from the paint retailing industry. The major objective of the study
was to investigate the impact of packaging, price and brand awareness on brand loyalty.
The independent variables were packaging, price and brand awareness and the dependent
variable was brand loyalty of consumers. It was found that packaging, price and brand
awareness showed significant positive relationship with brand loyalty. It also has predictive
associations between brand loyalty and packaging, price and brand awareness.

Vilcekova and Sabo (2013) analyzed the influence of demographic factors on attitudes towards
brands and brand buying behavior of Slovak consumers. The major objective of the study
was to determine the demographic factors that impact on consumer’s brand perception. The
dependent variable was consumer’s brand perception and the independent variables were
gender, education and age. It was found that gender does not impact on buying behavior
relating to brand perception. But age and education level have significant impact on
consumer’s brand perception.
ISSN: 2091-0460 Impact of Advertisement and Price on Consumer Purchase Decision 69

Srinivasan et al. (2014) measured an impact of education on purchase behavior of luxury

brands. The major objective of the study was to understand the influence of education on
the frequency of buying luxury product and to show the influence of education on various
luxury value dimension on purchase behavior of luxury brand. The dependent variable was
purchase behavior of luxury product and the independent variables were financial value,
functional value, individual value, social value and education. It was found that there is a
relation between education level and the place from which they buy the product. The study
showed that consumers with different education level such as graduates, postgraduates and
doctorates prefer Malls for buying the products and undergraduates have different preference
for purchasing luxury brands. The study also showed that graduated and postgraduates have
higher rating towards financial value in comparison to under graduates.

Figure 1: Conceptual Framework

Advertisement
Consumer Purchase
Decision
Price

• Gender
• Academic Qualification

Research methodology
Research design
This research is descriptive and model building. The study analyzed the factors that
influence consumer buying decision in purchasing consumer goods. The study analyzed
the relationship among dependent variable (consumer buying decision) and independent
variables (Advertisement and Price). The study also analyzed the relationship between
independent variables and moderating variables (gender and age).

Structured questionnaire comprising of five-point Likert scale has been employed to elicit
responses on factors influencing consumer buying decision. Stratified sampling is done to
generate data. The researcher utilized primary sources of data.

Nature and sources of data

Necessary data and information are collected through primary sources to obtain the objectives
of the research. These data are quantitative in nature and collected through data collection
instruments like questionnaire. Comprehensive literature reviews were made on factors
influencing consumer buying decisions to analyze and compare and validate the possible
outcome of the research.
 70 Management Dynamics, Vol.23, No.1, 2020 ISSN: 2091-0460

Population and sample

This study is intended to identify factors influencing consumer buying decisions. The sample
size is 370 respondents in Kathmandu City. Stratification is also done based on age (youth,
adult), and income level.

Respondents’ profile
Customers are the king of the market of modern business world. This study collected different
viewpoints from the different respondents representing from different field. Respondents’
views about the effect of perceived quality on consumer purchase decision from 370
respondents from different fields such as teachers, house wives and business in Kathmandu
City. The survey questionnaire has been categorized with a view to understand consumer
buying behavior and decisions of the respondents about dependent and independent
variables ranging from “1” strongly disagree to “5” strongly agree.

The respondents’ profile has been analyzed using frequencies and percentage analysis
technique with SPPS 23.0, Frequencies and percentage were used to present the result of
respondents’ profile based on the survey questionnaires used in the study.

Table 1
No. of respondents by age group
Age Group Frequency Percent
Above 25 50 13.52
26-34 185 50
35-50 90 24.32
51-60 45 12.16
Total 370 100

Table 1 showed that 50 percent of the respondents are between 26 to 34 which is the highest
number of the respondents. 24.32 percent of the respondents are from the age of 35 to 50,
13.52 percent from above the age of 25 and 12.16 percent is from the age of 51 to 60.

Table 2
No. of respondents by academic qualification
Academic Qualification Frequency Percent
SLC/SEE 4 1.1
Plus Two/Intermediate 22 5.9
Bachelor 147 39.7
Masters’ Degree 184 49.7
Above Masters 13 3.5
Total 370 100
ISSN: 2091-0460 Impact of Advertisement and Price on Consumer Purchase Decision 71

Table 2 depicts 49.7 percent of the respondents are from mastersr level and 39.7 percent is
from bachelor level. Only 1.1 percent of the respondents is from SLC/SEE and 5.9 percent is
from Plus Two/ intermediate level whereas 3.5 percent is from Masters’ Degree.

Table 3
No. of respondents by income level
Income Level (Rs.) Frequency Percent
10,000 – 20,000 59 15.9
21,000 – 30,000 111 30.0
31,000- 40,000 89 24.1
41,000 – 50,000 52 14.1
Above 50,000 59 15.9
Total 370 100

Table 3 shows that 15.9 percent of the respondents’ income level lies between Rs.10,000 to
Rs.20,000. Similarlty,30 percent of the respondents’ have Rs. 21000 to 30,000, 24.1 percent
have 31000 to 40,000. 14.1 percent of the respondents lies between 41,000 to 50,000.

Analytical tools
It is important to assess factors influencing consumer behavior in purchasing consumer
goods at the individual level. It is needed to collect individual consumer data to measure
each customer’s behavior in purchasing product. The research involved the exploration and
interpretation of the perceptions, opinions, behaviors, concerns, motivation, and culture of
consumers.

Based on the data generated through structured questionnaires quantitative research methods
are also be applied to define the relationship between various construct and model fit. .

The questionnaire considered of Likert-type statement about which respondents were asked
to indicate their degree of agreement and disagreement using a five –point scale (with anchors
1= strongly disagree and 5= strongly agree). Database such as SPSS, Excel was employed for
this research.

Reliability test
Reliability analysis is a popular and frequently used procedure. SPSS method of accessing
reliability analysis is user friendly and largely intuitive. Chronbach’s alpha is a measure of
reliability that is most widely used (George & Mallery.2009).

Descriptive statistics
Descriptive statistics is an important statistical tool to compute different values of the cases
or variables of a study. It exactly provides different aspects of measurement. In this research,
 72 Management Dynamics, Vol.23, No.1, 2020 ISSN: 2091-0460

different statistical values are calculated such as sum. Mean median, mode, range, quartiles,
standard deviations, standard error, minimum, maximum, graphs etc. Primary data will have
been analyzed with the use of it.

Correlation analysis
In this research, correlation analysis is conducted to assess the impact of moderating variable
on dependent variables and moderating variables on independent variables. Correlation is
computed coefficient to show the composite relationships.

Linear regression is used to model the value of a dependent scale variable based on its linear
relationship to one or more predictors. The linear regression model assumes that there is a
linear or “straight line”, relationship between the dependent variable and each predictor. The
regression models proposed for tested in this study are as follows:

Y1= α+ β1X1 + β2X2 + Ei ………….(1)

Where, Y1 = Consumer Purchase Decision

X1 = Advertisement
X2 = Price
β = Coefficient of Independent Variables
E = Error term
α = Constant
CPD= α + β1AD + β2P E
Where, CPD = Consumer Purchase decision
AD= Advertisement
P = Price
E = Error term
α = Constant

Presentation and data analysis

Presentation and data analysis
The chapter deals with analysis of primary data collected through the questionnaire survey.
The researcher has attempted to present and explain the results of the primary data. The major
objective of the study was to measure the impact of advertisement and price on consumer
purchase decisions for consumer goods and to analyze the relationship advertisement and
price with consumer purchase decision.

Firstly, reliability is tested using Cronbach’s alpha coefficient. The chapter also concentrated
on exploring the condition of advertisement and price with consumer purchase decisions and
age and gender by using descriptive statistics.
ISSN: 2091-0460 Impact of Advertisement and Price on Consumer Purchase Decision 73

Reliability Analysis Gliem and Gliem (2003) opined that the value above 0.7 is considered
acceptable and reliable. In order to prove internal reliability of the construct used, the
researcher has performed Cronbach’s alpha Test of Reliability. According to Nunnally and
Berstein (1994). The variables advertisement, price and consumer purchase decisions were
separately tested to find out whether designed questions are reliable or not. Below table
shows the scores estimated based on the collected primary data.

Table 4
Reliability test using cronbach’s alpha coefficient
Variables Cronbach’s Alpha Coefficient No. of Items
Advertisement 0.718 7
Price 0.790 5
Consumer Purchase Decisions 0.694 7

Table no.4 shows that Cronbach’s alpha of advertisement and price are 0.718 and number
of items are 7 and 0.790 with 5 items respectively. Cronbach’s alpha of consumer purchase
decisions is 0.694 with 7 items which is greater than 0.6 and according to George and Mallery,
2009; Nunally,1978 it is acceptable to internal consistency.

Descriptive statistics analysis

Mean and standard deviation analysis are used to analyze data in this study. Higher mean
value means more respondents are agreed that the variable could have a great impact on
consumer purchase decisions.

Advertisement
This section explores the impact of advertisement in purchasing decision for consumer goods
through descriptive analysis. In this study advertisement includes seven statements. The
variable is measured in 5 point likert scale: 1-strongly disagree to 5 – strongly agree. The
opinion of respondents is observed by computing its mean and standard deviation. Mean
value gives the result of average condition of respondent’s feeling and standard deviation
shows the deviation from the average mean of the respondents. The data presented below
represent the impact of advertisement in purchase decision of consumers.

Table 5
Advertisement items
Scale Items of Advertisement Mean Std. Dev.
AD1 I Watch/ listen to advertisements 4.05 0.612
AD2 Advertisements stimulate me to purchase the product 3.75 0.660
AD3 Advertisements are necessary to attract the consumer towards the 4.36 0.706
product
AD4 Advertisements motivate me to shift from one brand to another 3.61 0.803
brand
 74 Management Dynamics, Vol.23, No.1, 2020 ISSN: 2091-0460

AD5 Advertisements create awareness on consumers 4.15 0.658

AD6 Advertisements help me to recall the brand in my mind 4.07 0.665
AD7 I usually buy advertised product 3.44 0.854
Overall Average N = 370 3.92 0.435
Source: Field Survey

Table 5 shows descriptive statistics of seven different scale items of advertisement. Among all
scale items, AD6 “Advertisements are necessary to attract the consumer towards the product”
had high score mean 4.36. There was consistent responses from the respondents to scale item
AD1, AD4, AD5, AD7, AD8 and AD9. Scale item AD9 “I usually buy advertised product”
had the lowest mean 3.44. It can be concluded from above table that advertisements are very
necessary for attracting the consumer. Advertisement also creates awareness on consumer
towards the product and also helps to recall the brand. The grand mean of advertisement was
3.92 and the standard deviation was 0.692.

Price
This section shows the condition of Price through descriptive analysis. Price includes five
different statements. This construct was measured in 5 point likert-scale , 1- strongly disagree
to 5- strongly agree. The respondents’ opinion was observed by computing its mean and
standard deviation. Mean value gives the result of average condition of respondents feeling
and standard deviation shows the deviation from the average mean of the respondents.

Table 6
Price items
Scale Items of Price Mean Std. Dev.
P8 I am willing to purchase high priced product 3.28 0.833
P9 I may buy fake brand with lower price 3.15 1.097
P10 I prefer to buy products during sales seasons 3.70 0.792
P11 I always bargain when buying a product 3.78 0.817
P12 Price discount changes my attitude and purchase intention 4.26 0.890

Overall Average N=370 3.63 0.650

Source: Field Survey

Table 6 showed among five scale items P12 “Price discount changes my attitude and purchase
intension” scored the highest mean value of 4.26 and P9 “I may buy fake brand with low price”
scored the lowest mean value with 1.097 standard deviation. The grand mean of price was
3.61 with 0.878 standard deviation. According to the result the respondents are sensitive and
prefer to buy cheap price products and prefer to purchase the product during sales seasons.

Consumer purchase decision

This section shows the condition of consumer purchase decision through descriptive analysis.
Consumer purchase decision includes seven different statements. This construct was measured
in 5-point likert-scale, 1- strongly disagree to 5- strongly agree. The respondents’ opinion
ISSN: 2091-0460 Impact of Advertisement and Price on Consumer Purchase Decision 75

was observed by computing its mean and standard deviation. Mean value gives the result of
average condition of respondents feeling and standard deviation shows the deviation from
the average mean of the respondents.

Table 7
Consumer purchase decision items
Scale Items of Consumer Purchase Decision Mean Std. Dev.
CPD 13 I understand my need before taking buying decision 4.13 0.644
CPD14 I understand the brand before buying the product 3.88 0.650
CPD15 I compare the available alternatives before buying 3.94 0.611
CPD16 I evaluate the available features before buying 3.96 0.703
CPD17 I search information from various sources before buying 4.00 0.618
CPD18 I visit a number of shops for purchasing any product 3.69 0.795
CPD19 I take a long time to make a buying decision 3.33 0.919
Overall Average N=400 3.85 0.423
Source: Field Survey

Table 8 showed individual scale items of consumer purchase decision. Among seven scale
items CPD13 “I understand my need before taking buying decision” scored the highest mean
value 4.13 with 0.644 standard deviation. Code no. CPD19 “I take a long time to make a
buying decision” scored the lowest mean value 3.33 with 0.919 standard deviation. The grand
mean of consumer purchase decision was 3.84 and standard deviation was 0.701.

It is concluded from the study that the respondents used various source for collecting
information about the products alternatives available in the market and also compare
the alternatives that can satisfy their needs and aware with their needs before buying the
products.

Summary of descriptive statistics analysis

Table 8
Overall Mean and Standard Deviation of Variables
Variable Items Mean Std. Dev.
Advertisement 3.919 0.4346
Price 3.633 0.6502
Consumer Purchase Decision 3.846 0.423

Table 8 shows that mean value of advertisement, price and consumer purchase decision are
above the level of 3.0 and standard deviation of all the variables is below 1.0. According to
table 8 the mean value of advertisement is 3.919 which was the highest than other variables.
It indicates the greatest impact on purchase decision of consumers for purchasing consumer
goods.
 76 Management Dynamics, Vol.23, No.1, 2020 ISSN: 2091-0460

Correlation coefficient analysis

Karl Pearson’s Correlation coefficient is used to find out the relationship between dependent
and independent variables. In this study consumer purchase decision is taken as dependent
variable and advertisement and price are as independent variables. The following table
shows the relationship between dependent and independent variables without considering
moderating variables.

According to Levin and Fox (2006) if p-value is less than 0.3 there is weak correlation between
the variables. If p-value is greater than 0.3 but less than 0.6 there is moderate correlation
between the variables and if p- value is greater than .06 there is strong correlation between
the variables.

Table 9
Correlation analysis
Advertisement Price CPD
Advertisement Correlation 1
p-value
Price Correlation 0.263 1
p-value 0.000
CPD Correlation 0.162 0.146 1
p-value 0.002 0.005

Table 9 shows weak correlation of advertisement and price with consumer purchase decision
which are 0.162 and 0.146 respectively.

Multiple regression analysis

Multiple regression is one of the most widely used techniques in the analysis of data in the
social sciences (Bryman & Cramer,2001). The technique can be used to analyze the relationship
between a single dependent variable and several independent variables (Tabachnick & Fidell,
2001). Taking consumer purchase decision as dependent variable and advertisement and
price are as independent variables. The independent variables are regressed with consumer
purchase decision.

Table 10
Regression analysis
Coefficient value Std. t-value p-value
of B Error
(constant) 3.078 0.209 14.719 0.000
Advertisement 0.130 0.052 2.513 0.012
Price 0.071 0.034 2.087 0.038
R2 0.038
Adjusted R2 0.033
Standard Error of Estimate 0.417
ISSN: 2091-0460 Impact of Advertisement and Price on Consumer Purchase Decision 77

F- value 7.211
p-value of F test 0.001
Model 1: CPD = 3.0787+0.130AD+0.071P
Where, CPD= Consumer Purchase Decision, AD= Advertisement P=Price

According to table 10, F-value and P-value of model are 7.211 and .001 respectively which is
significant at 5% level of significance. So, the model is fitted linearly.

R-square of this model is 0.038 or 3.8% which means 3.8% of variation in consumer purchase
decision is explained by advertisement and price. Coefficient of advertisement is 0.130. It
means changes on one unit of advertisement leads to increase 0.130 units in purchasing
decision of consumers for goods . Coefficient of price 0.071 shows that changes in one unit of
price leads to increase 0.071 units in purchasing decision of consumer goods.

Hypothesis Testing
H1: Advertisement has significant relationship with consumer purchase decisions
P-Value of advertisement is 0.012 which is significant at 5% level of significance. So hypothesis
1 is accepted.
H2 : Price has significant relationship with consumer purchase decisions
P-Value of price is 0.038 which is significant at 5% level of significance. So hyposthesis 2 is
accepted
Table 11
Summary of hypothesis testing
Standard
Hypothesis Relationship t-Value p-Value Result
Coefficient
H1 Advertisement→CPD 0.130 2.513 0.012 Supported
H2 Price→CPD 0.071 2.087 0.038 Supported

According to table 11,p-value of advertisement and price are 0.012 and 0.038 respectively
which are significant at 5% level so hypothesis 1and hypothesis are accepted.

H3: Gender moderates consumer purchase decision

Table 12
Descriptive statistics of gender
Gender N Mean Std. Deviation Std. Error
Male 197 3.846 0.385 0.0274
Female 173 3.847 0.465 0.0354
 78 Management Dynamics, Vol.23, No.1, 2020 ISSN: 2091-0460

Table 12 shows that mean value of male and female were 3.846 and 3.847 respectively and
value of standard deviation for male and female were 0.385 and 0.465 respectively. Mean
value for both gender was above 3 and standard deviation was below 1. It shows mean value
is fair.

TableNo.13
Independent sample test of gender with consumer purchase decision
Levene’s Test for Equality of Variances
Sig(2- Mean Std. Error
F Sig. T df 95% CI
tailed) Differences Differences
Lower Upper
Equal variance
1.790 0.182 0.15 368 0.988 0.00068 0.04419 0.08620 0.087
Assumed
Equal variance
0.15 334.65 0.988 0.00068 0.04473 -0.08730 0.088
not assumed

Table 13 shows that p-value for gender is 0.182 which is greater than 0.05 which indicates that
there is no difference among male and female groups of respondents in purchase decision.
Males and females both have equal variance statistically. For compare mean t-test sig. value
was 0.15which is also insignificant. Therefore, it can be concluded that there is no difference
in opinions regarding consumer purchase decisions between males and females. So, gender
does not moderate consumer purchase decision.

One Way ANOVA

Table 14
One way ANOVA by income level with consumer purchase decision
Consumer Purchase Sum of Square Df Mean square F Sig.
Decisions
Between Groups 0.596 4 0.149 0.828 0.508
Within Groups 65.507 364 0.180
Total 66.103 368

Table 14 depicts that the p-value of income level is 0.508 which is greater than 0.05. It means
there is no significance difference in buying behavior of respondents with different income
level. So, income level does not moderate the purchasing decision of consumers.

Findings
The finding showed that correlation of consumer purchase decision over advertisements and
price were 0.162 and 0.146 respectively. So, this model could predict for advertisement by 16
percent and price by 14 percent.
ISSN: 2091-0460 Impact of Advertisement and Price on Consumer Purchase Decision 79

The study showed regression coefficient of advertisements was 0.130, t-vale was 2.513 and
p-value was 0.012, which was statistically significant at 5% level which showed advertisements
significantly influence consumer purchase decision.

The regression coefficient of was 0.071, t-value was 2.087 and p-value was 0.038, which also
showed statistically significant at 5% level it means price is one of the influencing factors to
make purchase decision.

Mean value of male and female were 3.846 and 3.845 respectively which were above 3 and
standard deviation of male and female were 0.274 and 0.354 respectively which were below 1
which showed both value were fair.

The study showed p-value for gender was 0.182 which is greater than 0.05, it showed
insignificant which indicates there was no difference among male and female groups of the
respondents in buying behavior. But t-test was 0.015 which is less than 0.05.

p-value of income level was 0.508 which is greater than 0.05. It means there is no significance
difference in buying behavior of respondents with different income level. So, income level
does not moderate the purchasing decision of consumers.

Discussion
The findings of this study is consistent with Shafi (2017) who has measured an impact of
advertisement on consumer buying behavior to examine the effects of advertisements on
customers and found that advertisement provides information about the products and
reminds the customers to buy the products and showed the advertisements as the most
influencing factor in consumer buying behavior.

This study is consistent with Rizal, Adan and Ibrahim (2017) who has conducted a research
on effect of price, design and location on decision of purchase and its implication on customer
satisfaction. It was found that price set by housing developers has an effect on purchasing
decision and price is one of the considerations of consumer in making purchase decision for
housing in Band Aceh City.

This study is also consistent with Zhou and Gu (2015) who researched on the effect of different
price presentations on consumer impulse buying behavior: the role of anticipated regret
and found the form of price presentation (based on the amount of money or percentage off)
has a significant impact on consumer impulse buying behavior. The study found that price
discounts based on the amount of money could arouse more willingness to buy.
 80 Management Dynamics, Vol.23, No.1, 2020 ISSN: 2091-0460

The respondents were very aware and alert with their own needs before taking decision for
purchasing the product. So the customers used various sources for collection of information
on different aspects of product as alternatives are available in the market. The customers also
compared the features, price, and quality of product with competing brands. And then take
decision for purchasing the product that can satisfy the needs.

The study showed that the moderating variables gender and income level have non-
statistically differences in the consumer purchasing decisions. This suggested that gender
and income level do not have an impact on relationship with consumer purchase decision. It
showed no difference among male and female groups of respondents in purchasing decisions
for consumer goods. They have equal variance statistically. So, gender and income level do
not moderate the consumer purchase decision.

The findings of this study is consistent to Mashao and Sukdeo (2018) who have found gender
has no significant effect on consumer buying behavior for durable household products and
Vilcekova and Sabo (2013) concluded that gender does not impact on buying behavior relating
to brand perception.

Similarly, academic qualification of the respondents also showed non -statistically significant
on the consumer purchasing decisions for consumer goods. It indicated that academic
qualification do not moderate the consumer purchase decisions.

The findings of this study is consistent with Furaji, Latuszynska and Wawrzyniak (2012)
investigated the factors influencing consumer behavior for the electric appliance market
and found insignificant difference between the influence of academic qualification of the
customers on consumer buying behavior.

Conclusion
It is very difficult and tough task for the marketers to understand the consumers’ buying
behavior. So it is needed to identify the factors that influence the purchase decision as each
individuals have different behavior and are influenced by different factors. Generally age,
gender, income level, are the factors which influence consumer purchase behavior. These
days consumers are aware with the quality, price of product and availability etc.

The objective of the study was to analyze the influence of advertisement and price and whether
gender and academic qualification moderate consumer purchase decision for consumer good
and consumer purchase decision as dependent variable. Now a days, consumers have become
conscious as various products are available in the market. The consumers seek for information
on different aspects of product. Due to development of information technology social media
has become powerful tool to provide such information to the customers and advertisement is
ISSN: 2091-0460 Impact of Advertisement and Price on Consumer Purchase Decision 81

one which play crucial role to communicate with the customers, create awareness and helps
to recall the brand with mind of the customers. According to this study advertisement was
significant statistically at 5% level which shows significant influence of advertisement on
consumer purchase decision. Similarly, this study showed that consumers are price sensitive
price is focused by the consumers to take purchase decision for purchasing consumer goods.
According to this study price also has significant impact on consumers.

But according to the present study, gender and academic qualification do not make any
significant influence in consumer buying behavior in purchasing consumer goods. It
shows they have neutral feelings towards purchase decision of the respondents. Finally, it
is concluded that advertisement and price influence consumers for purchasing consumer
goods.

Implication for future research

Today’s customer is aware and influenced by social media. As per the findings of the study
it can be said that advertisement with information about the product such as price play a
vital role in consumer buying behavior. Advertisement is crucial for marketing and creating
awareness of products to different target audience. There is a need of investigation on the
impact of promotional tools on consumer behavior. Further research may choose to study
and examine different types of sales promotions and its effect on consumer buying behavior.
The study showed price was influencing factor to purchase consumer goods as they seemed
to be price sensitive and agreed that price discount may change their purchase attitude and
purchase intention and also mentioned that they prefer to buy the product during sales
seasons when the low price is offered. Therefore, the marketers should arrange for special
offers and complimentary gift, different promotional schemes such as price off, price discounts
or various occasions, festive occasions to promote the sale and attract the customers.

The manufacturers should strongly consider advertisement and price as consumer buying
decisions are influenced by these factors for consumer’s goods. The findings of the study also
have statistically proven that gender and academic qualification do not significantly influence
in consumer buying behavior. Therefore, consideration of these moderating variables may
not be necessary for designing the products.

Findings of the study are also crucial for future researches. Future research could be conducted
by specifying the product. This research also could be extended with more independent
variables and with more moderating variables. Furthermore, this study could be conducted
with the real buyers of product who actually spend money to buy and use or consume the
product. More sample size and different sampling techniques can be used for further study.
The study could be expanded to different cities and specific age group can be taken for future
research.
 82 Management Dynamics, Vol.23, No.1, 2020 ISSN: 2091-0460

Reference
Abideen, Z. Ui., & Saleem, S. (2011). Effective advertising and its influence on consumer
buying behavior. European Journal of Business and Management, 3(3).

Alfred, O. (2013). Influence of price and quality on consumer purchase of mobile phone in
Kumari Metropolish in Ghana: A comparative study. European Journal of Business and
Management, 5(1).

Ammoura, A. & Ertemael, A.V. (2016). The role of social media advertising in consumer
buying behavior. International Journal of Commerce and Finance, 2(1).

Ampofo, A. (2014). Effects of advertising on consumer buying behavior. New Media Mass
Communication, 27.

Anjum, B., Irum,A., & Naheed,S. (2015). Impact of television advertisement on consumer
buying behavior: the moderating role of religiosity in the context of Pakistan.
International Interdisciplinary Journal of Scholarly research, 1

Arsad, H.M., Noor, M., Noor, N. Ahmad, W., & Javed, S. (2014). Impact of effective advertising
on consumer buying behavior. Journal of Basic Applied Science Research.

Brosekhan, A., Abdul & Velayutham, C.M. (2013). An empirical study on consumers buying
behavior towards selected home appliance products in Ramanathapuram. IOSR
Journal of Business and Management, 2(1), 13-21.

Dhurup, M., Mafini, C., & Dumasi, T. (2014). The impact of packaging, price and brand
awareness on brand loyalty: Evidence from the paint retailing industry. Independent
Research Journal in the Management Sciences, 14(1).

Dulin, G.C. (2016). Impact of advertising on consumer buying behavior. International Journal
of Advanced Research in Management and Social sciences, 5(6).

Furaji, F.; Latuszyriska, M., & Wawrzyniak. A. (2012). An empirical study of the factors
influencing consumer behavior in electric appliance. Journal of International Studies,
6(3).

George,D., & Mallery, P. (2009). SPSS for windows, step by step (8th ed.). Delhi, Patpargunj:
Dorling Kindersley (India) Pvt. Ltd, Licensees of Pearson Education in South Asia.

Gliem, J.A., & Gliem, R.R. (2003). Calculating, interpreting, and reporting Cronbach’s Alpha
reliability coefficient for Likert- type scales. Midwest Research to Practice Conference
in
ISSN: 2091-0460 Impact of Advertisement and Price on Consumer Purchase Decision 83

Haghshenas, L., Abedi, A., Ghorbani, E. Kamali, A., & Harroni, M. (2013). Review on consumer
behavior and factors affecting on purchasing decisions. Singaporean Journal of
Busniess Economics and Managment Studies, 1 (10).

Kotler, P., & Armstrong, G. (1996). Principles of Marketing (7th ed.). Upper Seddle River :
Prentice - Hall.

Kotler, P., & Armstrong, G. (2014). Principles of Marketing (11th ed.). Prentice Hall, Europe,
London.

Kusumah, R. (2015). The effect of trust, price, quality and perceived risk towards consumer
purchase behavior in online shops instagram. Jurnal Berkala Limiah Efisiensi, 15(5)

Malik, M.E., Ghafoor, M.M. & Iqbal, H.K. (2013). Impact of brand image and advertisement
on consumer buying behavior. World applied Sciences Journals, 23(1).

Martier, B.A.S., Bhimy, A.C. & Agee, T. (2002). Investigation of infomercials and advertising
effectiveness: An Empirical Study. Journal of Consumer Marketing, 9(6).

Mashao, E. T. & Sukdeo, N. (2018). The factors influencing consumer behavior in the purchase
of durable household products. Proceedings of The International Conference on
Industrial Engineering and Operations Management on July,2018.

Niazi,G.S., Siddiqui,J., Shah, B. & Hunjara, A.I. (2012). Effective advertising and its influence
on consumer buying behavior. Information Management and Business Review, 4(3).

Nunnally, J.C. (1978). Psychometric Theory, New York: Mc Graw-Hill.

Nunnally, J.C., &Bernstein, I.H.(1994). Psychometric Theory (3rded.)New York:McGraw-Hill.

Pal, K., & Pal, T (2019). Effects of advertisement on consumer behavior. International Journal of
Management, Technology and Engineering, 9(3).

Priya, P., Sharma, S. & Baisya, R.K. (2010). Television advertisement and children’s buying
behavior. Marketing Intelligence and Planning, 28.

Rafique, M. (2012). Impact of celebrity advertisement on customers’ brand perception and

purchase intention. Asian Journal of Business and Management Sciences, 1(11).

Rai, N. (2013). Impact of advertising on consumer behavior and attitude with reference to
consumer durables. International Journal of Management Research and Business Strategy,
(2).
 84 Management Dynamics, Vol.23, No.1, 2020 ISSN: 2091-0460

Rizal, F., Adan, M., & Ibrahim, M. (2017). Effect of price, design and location on decision
of purchase and its implication on customer satisfaction. International Journal of
Economics, commerce and Management, 5(12).

Shafi, P. (2017). Impact of advertisement on consumer behavior: A case study in Ponnani

Municipality, Kerala. Imperial Journal of Interdisciplinary Research, 3(1).

Shrestha, S.K. (2018). Brand loyalty of baby diaper products. Management Dynamics, 21(1),
79-88.

Shrestha, S.K. (2018). Factors affecting pouch milk purchase in Kathmandu. Management
Dynamics, 33(2), 81-90.

Sivanesan, R. (2014). Impact of brand image and advertisement on consumer buying behavior
-comparative study on rural and urban consumers. International Journal of Research in
Management and Business Studies, 1 (2).

Sumathi & Begum, M. (2016). Impact of advertisements on consumer behavior of cosmetic

products- a study in Mangalore. International Journal of Scientific Research and Modern
Education, 1(1).

Sundarraj, R. (2018). Impact of advertisement on buying behavior of consumer in Sivakasi.

Journal of Management Studies, 4(3).

Vilcekova, L., & Sabo, M. (2013). The influence of demographic factors on attitudes towards
brands and brand buying behavior of Slovak consumers. International Journal of
Education and Research, 1(11).

Zhou, H., & Gu, A. (2015). The effect of different price presentation on consumer impulse
buying behavior: the role of anticipated regret. American Journal of Industrial and
Business Management, 5.