Resource Allocation in Television Advertisement
Resource Allocation in Television Advertisement
TELEVISION ADVERTISEMENT
INTRODUCTION
The Indian television commercial market size is estimated to touch 3 billion dollars (12,000
crore rupees) in year 2007. Television and commercials go hand in hand. Television survives on
advertising and subscription revenues, while advertisers reach their consumers via this potent
communications medium.
The ultimate goal of commercial is to influence perceptions that affect brand choice (Alba,
Hutchinson and Lynch, 1991). Given this, perceptual effects of commercials are important only
to the extent that they influence the brand-choice process. These perceptions may influence the
choice process directly or indirectly.
Many TV commercials feature catchy jingles or catch phrases that generate sustained appeal,
which may remain in the minds of television viewers long after the span of the advertising
campaign. Some of these ad jingles or catch-phrases may take on lives of their own
A celebrity ambassador must be exclusive to a brand as the day of the brand icon’s renaissance
is here to stay! Gone are the days when big corporate houses and consumer brands were the
classy few who had brand ambassadors to promote their products.
Every brand stands for something, every product has characteristics and features, every company
has a plan for its brand and how they would like people to remember it by…the brand’s unique
selling point. And every brand ambassador is a manifestation of the brand he or she represents.
“Pothys stands for family values and our brand ambassadors reflect this,” says Ramesh
(hindu.com).
Today’s brand heroes or heroines have a larger-than-life role to play. Brand ambassadors create
the pull and are a sure-shot formula for brand awareness. It is not a new phenomenon and brands
of all categories have used the tool of a brand icon in their quest for success. But the key is
awareness and brand ambassadors are the heroes in the field (hindu.com).
Animation is often used in commercials. Techniques can vary from hand-drawn traditional
animation to different forms of computer animation. By using animated characters, an
advertisement may have a certain appeal that is difficult to achieve with actors or with mere
product displays (wikipedia).
And above all is the concept of the advertisement. Crores are being spent to get a catchy idea.
The idea, whose mere display on television can catch the attention of millions.
Our study is to see that how these various aspects of TV commercials affect the viewers.
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BROAD PROBLEM AREA
Huge money is spent by organizations for the advertisement of their products or services.
Spending money on TV commercials which don’t influence the perceptions of the viewer’s is a
waste of time and money.
In this study, the problem being examined is improper allocation of resources to various aspects
of a TV commercial and the adverse effect caused due to a mismatch between the TV
commercial and the viewers not meant for it.
PROBLEM DEFINITION
To study consumer perception, on the effectiveness of the various aspects (celebrity ambassador,
concept of advertisement, catchy phrase or jingle, animation, and product or service
specification) of a TV commercial in order to prioritize resource allocation.
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SIGNIFICANCE AND NEED OF THE STUDY
There are ways to advertise a product or service. If one needs to go for TV commercials as the
advertising media, then the possible revenue or the outcome without commercials and after
commercials has to be estimated. A business gains maximum potential by advertisement on a
television.
The target customer has to be kept in mind during the conceptualizing stage. The affect of
advertisement on target customer as well as the ones not being targeted has to be studied.
Hence a TV commercial is a very sensitive issue for a business. If a firm knows, that investing
in which aspect of TV commercial will be beneficial, then a lot of money could be saved.
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RESEARCH OBJECTIVE
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RESEARCH PROCESS
THEORETICAL FRAMEWORK
INDEPENDENT VARIABLES
1) Celebrity ambassador
2) Concept
3) Catchy phrase or jingle
4) Animation
5) Product or service specification
DEPENDENT VARIABLE
1) Resource allocation
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HYPOTHESIS
NULL HYPOTHESIS
ALTERNATE HYPOTHESIS
1) The more the effectiveness of celebrity ambassador, the more will be the resource
allocated to it.
NULL HYPOTHESIS
ALTERNATE HYPOTHESIS
2) The more the effectiveness of concept, the more will be the resource allocated to it.
NULL HYPOTHESIS
ALTERNATE HYPOTHESIS
3) The more the effectiveness of catchy phrase or jingle, the more will be the resource
allocated to it.
NULL HYPOTHESIS
ALTERNATE HYPOTHESIS
4) The more the effectiveness of animation, the more will be the resource allocated to it.
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NULL HYPOTHESIS
ALTERNATE HYPOTHESIS
5) The more the effectiveness of technicality and features, the more will be the resource
allocated to it.
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RESEARCH DESIGN
RESEARCH METHODOLOGY
ANALYSIS PROCEDURE
The sampling technique being used is stratified random sampling on the basis of
demographics. I.e. strata would be panjab university for youth etc..
UNIT OF ANALYSIS: individuals are takes as the unit of analysis as the data being collected
is from the individuals within strata.
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DATA COLLECTION METHODS
PRIMARY SOURCE OF DATA COLLECTION
The secondary source of data collection is books and periodicals, the media, databases and
case studies.
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THE PRETESTING QUESTIONNAIRE
University Business School PRETEST PHASE
Panjab University
Chandigarh
Date
Dear participant,
Recently we have seen a surge in TV advertisement budget. It shows that how much a firm
relies on this source of advertisement. This questionnaire is designed to study the various factors
that influence a TV advertisement. The information you provide will help us better understand
the optimized resource allocation to various factors of TV advertisement.
Your response will be kept strictly confidential. Only members of the research team will
have access to the information you give. The names or the completed questionnaire will not be
made available to anyone other than the research team.
Thank you for your time and cooperation.
Ishwinder Singh Ghuman
Shipra chaudhary
MBA 1st year
Very positive somewhat positive not much impact somewhat negative very negative
a b c d e
3) The advertisement isn’t just about selling the product- it should be entertaining.
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a) Yes b) No
5) A punchline of an advertisement
a) Stimulates me
b) Keeps running through my head after I have seen the advertisement
c) Helps me relate better to the product or service
d) None of these
10) Here are a few questions related to the TV advertisement by the top two-wheeler firms of
India. Please tick/write as per your choices.
Name: ____________________
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Age: _______________________
Occupation: ____________________
1) One of the respondent said that question no (6) and (8) are no different. We studied the
issue and found that there question 8 is more specific and related to the study. So we
omitted question 6 of the pretest questionnaire.
2) In question 8 the respondents found it difficult to understand the line “information about
technical of a product”. So we simplified it to “technical information of a product”.
Question 8 of pretest phase is now question 7 of the original questionnaire.
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THE RESEARCH QUESTIONNAIRE
University Business School
Panjab University
Chandigarh
Date
Dear participant,
Recently we have seen a surge in TV advertisement budget. It shows that how much a firm
relies on this source of advertisement. This questionnaire is designed to study the various factors
that influence a TV advertisement. The information you provide will help us better understand
the optimized resource allocation to various factors of TV advertisement.
Your response will be kept strictly confidential. Only members of the research team will
have access to the information you give. The names or the completed questionnaire will not be
made available to anyone other than the research team.
Thank you for your time and cooperation.
Ishwinder
Singh Ghuman
Shipra Chaudhary
MBA 1st year
Question 1-8, Please circle as per your choice (only one option)
Very positive somewhat positive not much impact somewhat negative very negative
a b c d e
3) The advertisement isn’t just about selling the product- it should be entertaining.
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a) Yes b) No
5) A punchline of an advertisement
a) Stimulates you
b) Keeps running through your head after you have seen the advertisement
c) Helps you relate better to the product or service
d) None of these
6) Animated advertisements.
a) Are entertaining
b) Are easy to understand
c) Are complicated
d) None of these
9) Here are a few questions related to the TV advertisement by the top two-wheeler firms of
India. Please tick/write as per your choices (multiple ticks allowed).
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TV advertisements
Name: ____________________
Age: _______________________
Occupation: ____________________
Table 1(celebrity)
Cumulative
Frequency Percent Valid Percent Percent
Valid catch your attention 20 36.4 36.4 36.4
distraction from
product/service 8 14.5 14.5 50.9
makes you remember the
advertisement afterwards 8 14.5 14.5 65.5
makes remember the
product via celebrity 15 27.3 27.3 92.7
have a neutral effect on
you 3 5.5 5.5 98.2
none of these 1 1.8 1.8 100.0
Total 55 100.0 100.0
According frequency distribution in “table 2”, a whopping 60% of the respondents say that
celebrities have somewhat positive impact on advertisement, followed by 18.2% of the
respondents saying that there is not much impact. Only a mere 5.5% of the respondents said that
there is somewhat negative impact of celebrity ambassador on TV advertisements. Hence, a
celebrity ambassador has a positive effect on the advertisement and thus resources can be
allocated to it.
Table2 (celebrity)
Cumulative
Frequency Percent Valid Percent Percent
Valid very positive 9 16.4 16.4 16.4
16
somewhat positive 33 60.0 60.0 76.4
not much impact 10 18.2 18.2 94.5
somewhat negative 3 5.5 5.5 100.0
Total 55 100.0 100.0
Here entertainment has been considered as a subset of concept, as a good concept needs to be
entertaining. A whopping 85.5% of respondents say that a TV advertisement should be
entertaining, with a mere 14.5% respondents against this statement. Hence a concept should be
entertaining and thus deserves decent resource allocation on this behalf.
Table4 (Entertainment)
Cumulative
Frequency Percent Valid Percent Percent
Valid yes 47 85.5 85.5 85.5
no 8 14.5 14.5 100.0
Total 55 100.0 100.0
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Table5 (Punchline)
Cumulative
Frequency Percent Valid Percent Percent
Valid stimulates you 5 9.1 9.1 9.1
keeps running in your
head 23 41.8 41.8 50.9
helps u relate better
to product/service 27 49.1 49.1 100.0
Total 55 100.0 100.0
Table 6 (Animation)
Cumulative
Frequency Percent Valid Percent Percent
Valid are entertaining 31 56.4 56.4 56.4
are easy to understand 14 25.5 25.5 81.8
are complicated 5 9.1 9.1 90.9
none of these 5 9.1 9.1 100.0
Total 55 100.0 100.0
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Total 55 100.0
Bajaj was a sure winner with 40.0% respondents in favor of its advertisement concept. The close
2nd is Hero Honda with 34.5% respondents in favor of its advertisement concept. TVS with a
mere 16.4% vote is last.
Table 9 (Concept1)
Cumulative
Frequency Percent Valid Percent Percent
Valid Hero Honda 19 34.5 38.0 38.0
Bajaj 22 40.0 44.0 82.0
TVS 9 16.4 18.0 100.0
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Total 50 90.9 100.0
Missing System 5 9.1
Total 55 100.0
In animation also Bajaj emerged a sure winner with 52.7% respondents favoring it.
Table 10 (Animation1)
Cumulative
Frequency Percent Valid Percent Percent
Valid Hero Honda 3 5.5 7.9 7.9
Bajaj 29 52.7 76.3 84.2
TVS 6 10.9 15.8 100.0
Total 38 69.1 100.0
Missing System 17 30.9
Total 55 100.0
In technicality Hero Honda is at the top (34.5%), with Bajaj a close second (30.9%)
Table 11 (technical)
Cumulative
Frequency Percent Valid Percent Percent
Valid Hero Honda 19 34.5 42.2 42.2
Bajaj 17 30.9 37.8 80.0
TVS 9 16.4 20.0 100.0
Total 45 81.8 100.0
Missing System 10 18.2
Total 55 100.0
Table 12 (Sex)
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Cumulative
Frequency Percent Valid Percent Percent
Valid male 27 49.1 49.1 49.1
female 28 50.9 50.9 100.0
Total 55 100.0 100.0
Hypothesis testing
Use of Chi-Square Test. Hypothesis 1 can be stated in the null and alternate as follows:
H11: The more the effectiveness of celebrity ambassador, the more will be the resource allocated
to it.
Since both variables are ordinal, a chi-square test has been done, the results of which are shown
in output 1.
Table 14 (test 1)
Observed Expected
N N Residual
catch your attention 20 9.2 10.8
distraction from
product/service 8 9.2 -1.2
makes you remember
the advertisement 8 9.2 -1.2
afterwards
makes remember the
product via celebrity 15 9.2 5.8
have a neutral effect
on you 3 9.2 -6.2
none of these 1 9.2 -8.2
Total 55
Observed N Expected N Residual
very positive 9 13.8 -4.8
somewhat positive 33 13.8 19.3
not much impact 10 13.8 -3.8
somewhat negative 3 13.8 -10.8
Total 55
The chi-square value for the above hypothesis comes out to be 28.236 with 5 degrees of freedom.
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The probability level is taken to be .05. The tabular chi-square value is 11.070. Since the
calculated chi-square is larger than the tabular chi-square, the null hypothesis is rejected.
The cross tabulated table of the first two responses is shown in the table below. The 4
respondents who said that celebrity ambassador distract them from product or service being
advertised also said that celebrity ambassador has somewhat positive impact on the
advertisement. The 3 respondents who said that celebrity ambassador catch their attention in an
advertisement also said that celebrity ambassador has not much impact on the advertisement.
Table 15 (crosstab1)
Celebrities2 Total
somewhat not much somewhat
very positive positive impact negative very positive
Celebrities1 catch your attention 8 9 3 0 20
distraction from
product/service 0 4 2 2 8
makes you remember the
advertisement afterwards 0 6 1 1 8
makes remember the
product via celebrity 1 13 1 0 15
have a neutral effect on
you 0 0 3 0 3
none of these 0 1 0 0 1
Total 9 33 10 3 55
H21: The more the effectiveness of concept, the more will be the resource allocated to it.
Since both variables are nominal, a chi-square test has been done, the results of which are shown
in output 1.
Table 16 (Concept)
Observed N Expected N Residual Observed N Expected N Residual
yes 49 27.0 22.0 yes 47 27.5 19.5
no 5 27.0 -22.0 no 8 27.5 -19.5
Total 54 Total 55
Table 17 (entertainment)
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The chi-square value for the above (table 16) hypothesis comes out to be 35.852 with 1 degree of
freedom. The probability level is taken to be .05. The tabular chi-square value is 3.841. Since the
calculated chi-square is larger than the tabular chi-square, the null hypothesis is rejected.
The chi-square value for the above (table 17) hypothesis comes out to be 27.655 with 1 degree of
freedom. The probability level is taken to be .05. The tabular chi-square value is 3.841. Since the
calculated chi-square is larger than the tabular chi-square, the null hypothesis is rejected.
The cross tab table 18 of the responses to concept and entertainment in advertisement is shown.
The 44 respondents who say that advertisement should be entertaining also say that it should
have fresh concepts. This shows reliability between responses to entertainment and concepts.
Table 19 (cross tab 3)
Concept1 Total
Hero Honda Bajaj TVS Hero Honda
Concept yes 18 20 6 44
no 1 2 2 5
Total 19 22 8 49
In table 19 of cross tabulation, we see that a maximum of 20 respondents who said that
advertisements should have fresh concepts, were in favor of Bajaj. The industry specific analysis
also show that the advertisement by Bajaj have new concepts.. This shows the reliability of
responses.
H31: The more the effectiveness of catchy phrase or jingle, the more will be the resource
allocated to it.
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Since both variables are ordinal, a chi-square test has been done, the results of which are shown.
Table 20 (Punchline)
Observed N Expected N Residual
stimulates you 5 18.3 -13.3
keeps running in your
head 23 18.3 4.7
helps u relate better
to product/service 27 18.3 8.7
Total 55
The chi-square value for the above (table 20) hypothesis comes out to be 14.982 with 2 degree of
freedom. The probability level is taken to be .05. The tabular chi-square value is 5.991. Since the
calculated chi-square is larger than the tabular chi-square, the null hypothesis is rejected.
H41: The more the effectiveness of animation, the more will be the resource allocated to it.
Since both variables are nominal, a chi-square test has been done, the results of which are shown
in output 1.
Table 21 (Animation1)
Observed N Expected N Residual
Hero Honda 3 12.7 -9.7
Bajaj 29 12.7 16.3
TVS 6 12.7 -6.7
Total 38
The chi-square value for the above (table 21) hypothesis comes out to be 32.782 with 3 degree of
freedom. The probability level is taken to be .05. The tabular chi-square value is 7.815. Since the
calculated chi-square is larger than the tabular chi-square, the null hypothesis is rejected.
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are easy to understand 0 8 2 10
are complicated 0 3 1 4
none of these 1 3 0 4
Total 3 29 6 38
In table 22 of cross tabulation, we see that a maximum of 15 respondents who said that
animation is entertaining were in favor of Bajaj. The industry specific analysis also shows that
the advertisement by Bajaj is best in animation. This shows the reliability of responses.
H51: The more the effectiveness of technicality and features, the more will be the resource
allocated to it.
Since both variables are nominal, a chi-square test has been done, the results of which are shown
in output 1.
Table 23 (Technical)
Observed N Expected N Residual
yes 34 27.0 7.0
no 20 27.0 -7.0
Total 54
The chi-square value for the above (table 23) hypothesis comes out to be 3.630 with 1 degree of
freedom. The probability level is taken to be .05. The tabular chi-square value is 3.541. Since the
calculated chi-square is larger than the tabular chi-square, the null hypothesis is rejected.
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In table 24 of cross tabulation, we see that a maximum of 12 respondents who said that
advertisement should be technically informative were in favor of Hero Honda. However, the
industry specific analysis also shows that the advertisement by Bajaj is most technically
informative. This shows the reliability of responses.
SUMMARY
Objective:
To study consumer perception, on the effectiveness of the various aspects (celebrity ambassador,
concept of advertisement, catchy phrase or jingle, animation, and product or service
specification) of a TV commercial in order to prioritize resource allocation.
Results:
Of the five null hypotheses four were rejected and 1 was accepted. This shows that the concept,
punchline, celebrity ambassador, animation, technicality are areas of concern while making an
advertisement. Appropriate resources should be allocated to these parameters in terms of time
and money.
Chart 1
Responses to various paremeters
60 49 46 47
43
Responses
40 34
favored
20
unfavored
20 11
5 7 8
0
celebrity concept features entrtnmn tech-info
favored 43 49 46 47 34
unfavored 11 5 7 8 20
parameters
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In the above chart, responses to various parameters are shown. This comparison shows that
maximum number of respondents responded in favor of concept. The entertainment is a close
second. Earlier we had assumed entertainment being a part of concept. Hence concept should be
devoted maximum amount of resources like time, money etc.
Conclusion:
Through the responses we were able to determine the effectiveness of these parameters on
advertisement. After analyzing the responses, we found that all the parameters have a positive
response on TV administered. The parameter “concept” received the maximum positive response
(90.7%). The parameter “feature” was a close second with 83.6% favored responses. Since all
the parameters are favored by more than 50% respondent, they deserve considerable resource
allocation.
We hope that this research would form the foundation of further studies of many aspects of the
issue.
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