CHAPTER II

REVIEW OF RELATED LITERATURE

This chapter presents the different readings and literature used by the

researcher which are found to have relevance on the present study. The researchers

discussed the different information from research, articles, journals and internet

which were used as reference for the study.

Advertising

According to Percy and Eliott of Startegic Advertising Management (2016)

advertising is an indirect way of turning a potential customer towards the advertised

product or service by providing information that is designed to effect a favourable

impression: what we will call a positive brand attitude. This favourable brand attitude

then helps to place the consumer on the path towards seeking out the product or

service advertised.

Based to Berger (2015) advertising tries to attract attention to, create the desire for,

and stimulate action that leads to the purchase of products and services advertised on

the part of those reading print advertisements, listening to radio commercials, or

watching and listening to television commercials. That is, advertisers hope to

convince, to persuade, to motivate, and most important, to get people to act, to do

something. This something generally involves moving from the desire for products

and services to the actual purchase of the products or services.

According to The World Bank, decline inflation driven by stabilizing prices of food

and energy prompted the Bangko Sentral ng Pilipinas (Central Bank of the

Philippines) to adopt an accommodative policy stance in 2019. Improving labor

market conditions, and sustained growth in real household incomes, led to progress

in poverty reduction. Poverty reduction is expected to continue based on the current

economic outlook.

According to Shead of ASEAN Briefing (2017), the Philippines is ang island nation

with a unique geography, a very diverse culture and history. The population of the

Philippines is currently at 101.6 million (World Bank & Philippine Statistics

Authority), and the 12the largest globally. The Philippines boasts the third largest

Catholic population globally, and sharply contrasts with the rest of Southeast Asia.

Cultural Status of the Philippines

The culture of the Philippines comprises a blend of traditional Filipino and Spanish

Catholic traditions, with influence from America and other parts of Asia. The

Filipinos are family oriented and often religious with an appreciation for art, fashion,

music, and food. Filipinos are also hospitable people who love to have a good time.

(Elsaba,2015) The Philippines is a country that has varied cultural influences. Most

of these influences are results of previous colonization, deriving mainly from the

culture of Spain and the United States. Despite all of these influences, the old Asian

culture of Filipinos has been retained and are clearly seen in their way of life, beliefs

and customs. Wherever you go, Filipino culture is very evident and has largely been
appreciated and even

applauded in many parts of the world.

Consumer Buying Behavior

Consumers act in a specific way with regards to buying items in the market. The

top reasons that influences the purchases of Filipino consumers include brand

loyalty, advertising, and the value of money. Online shopping has likewise

developed as another trend among customers.

Consumer buying behavior is how people make decisions about what they buy, want,

need, or act to a product. It is particularly important to study the subject of consumer

buying behavior as it facilitates firms to plan and execute superior business strategies

(Khaniwale, 2015).

(Castillo, 2018) Filipino consumers prefer to buy branded things as they know it

came from a reputable brand of quality. It is also one way of showing people around

how proud you are wearing and carrying that brand. In some cases, this may be a

way of boasting to fellow and common friends that you have something new. Most

brands specially for apparel, Filipinos want the brands to be exposed so other people

will recognize that such is expensive or it can be seen as a status symbol as the case

maybe.

Entertainment

According to Nha and Long of AGU International Journal of Sciences (2019),

advertising that becomes Entertainment is the new and creative direction for the
television advertisements

in particular and media campaigns in general; however, the prerequisite is not to

build the entertaining advertisements without the following elements: being able

to motivate viewers to take actions; the content being relevant to

the products and services; and messages to be delivered being clearly conveyed.

Advertising messages must be able to stimulate consumers’ desires and elicit their

needs for the products and services to a very high level. In today's information

saturated era consumers are constantly overwhelmed by information and easily

distracted, as a consequence, advertisers have to consider what is essential and what

can be ignored when drawing up the advertising messages so not overflow the

audiences with excessive amount of information. Finally, Length of advertisements

of 15s, 20s, 30s or 60s are deemed to be appropriate and by no means it should

exceed 1 minute, because then the viewers’ minds begin to shift and lose focus.

Social Imaging

Social Image is a set of standards that someone is willing to give into and adopt as

their own. The person will assess and evaluate their own traits and behaviors based

on this “image” (Carroll,2019). They will also critique others based on these

communal prescribed lists of benefit and threats .

Advertisements generally have influence on how we perceive things around us.

Through various types of advertisements, especially TVCs portray how a user of a

certain product is or should be. It sometimes shows the social class the user of a
product belongs to, their

lifestyle and attitudes (Russello, 2009).

People feel pressurized to look a certain way to get a feeling of belonging. This may

have both positive and negative impact on the society. But in this research, we

will

focus on finding out if ‘social imaging’ in an advertisement is successful in

persuading people to purchase a product by inducing their desire to belong in a

certain social class.

(Herald,2008) said, it is also an important emotional hot button. Having an iPhone is

a social statement. Likewise, are having a nice car and home. People want the best

they can afford and, more often than not, the best they can’t afford. That’s why the

most powerful commercials focus on image and not price. Image, fear, wants and

dreams are all powerful emotional forces that drive the decision to buy. If used in a

timely fashion, they will be the forces behind higher down payments and profit.

Culture and Values

Culture is the most fundamental determinant of a person’s want and behavior. The

growing child acquires a set of values, perception preferences and behaviors’ through

his or her family and other key institutions. Culture influences considerably the

pattern of consumption and the pattern of decision-making.

Culture surrounds the creation, transmission, reception, and interpretation of ads and
brands, just as it touches every

aspect of consumption (Pratap,2019). Culture is what a people do, or the total life

ways of a people, the social legacy the individual acquires from its group. It is the

way we eat, groom, celebrate, travel, play, get together, and express feelings. It is the

way things are done.

Values are enduring expressions of culture. Values express in words and deeds what

is important to a culture. Values are enduring. They cannot be changed quickly

or easily. They are thus different from attitudes, which can be changed through a

single

advertising campaign or even a single ad. Think of cultural values as the very strong

and rigid foundation on which much more mutable attitudes rest. Values are the

foundation of the structure. (Semenik and et al. (2012)) Attitudes are, in turn,

influenced by values, as well as by many sources. Advertising has to be consistent

with, but cannot easily or quickly change, values. It is thus senseless for an advertiser

to speak of using advertising to change values in any substantive way. Advertising

influences values in the same way a persistent drip of water wears down a granite

slab-very slowly and through cumulative impact, over years and years. It is also the

case that cultural values change advertising.

Familiarity

Product familiarity is defined by people's representations of prior experiences with

products. These representations that are obtained through learning, experience, media

and word of mouth are categorized in people's memory. (Peter & Olson, 2010)
Exposure to a familiar product

is a simple comprehension process in which relevant meanings related to the product

from memory are automatically activated.

Qin, Koutstaal and Engel (2014) studied “whether familiar product logos were

searched for faster than unfamiliar ones” in visual search tasks. The study found that

familiarity with brand logos emerging from passive and active advertising and

experiences with products leads to a more efficient identification of logos in visual

search tasks. Before conducting the study, the researchers stated that comprehending

how familiarity speeds search enables to understand how mental representations for

frequently seen objects change. Eventually, Menon and Soman (2015) explored the

impact of curiosity on the efficacy of Internet advertising. The findings of their study

postulate that interest in terms of time spent on the ad and attention devoted to

specific product information improves the quality of the search, resulting in more

oriented memory and recall. The authors propose a curiosity-generating

advertisement strategy to increase the interest of customers and to learn about the

curiosity cause from product information.

Dreze and Hussherr (2017) have explored the impact of ad features on the ability to

recall advertisements. Cartoon material, banner ad form, and ad frequency

(repetition) lead to higher ad recall but not the banner size. Furthermore, the authors

stated that "the meaning of a banner affects both advertising recall and brand

recognition. This demonstrates that what an ad means is more relevant than what it
says. In comparison,

Yoon (2016) found that the picture of banners is more significantly powerful than

text to determine the attitudes of consumers towards online ads.

Spending

Advertising spending often generates positive impression in consumers ' minds about

a brand. Also, Aaker and Jacobson (2009) find a positive link between ads and

perceived quality. Advertising investment is therefore positively linked to perceived

quality, which leads to higher purchases from that brand as consumers typically

prefer to buy from a well-known brand.

Yoo, Donthu & Lee (2000) examined the impact of variables in the marketing mix

on consumer behavior. The approach focuses on those determinants ' indirect effect

on

brand loyalty. Since publicity spending affects consumer expectations of product or

service quality. (Ha, Janda & Muthaly, 2011) Its role should be indirectly linked to

brand loyalty implying that, instead of advertising itself, it is how advertising affects

the company's customer perception that is more critical in affecting consumer buying

behaviors.

The earlier studies have presumed that customers began to expect more from that

particular brand when a huge total is spent on ads and other marketing efforts. This

makes better quality of that brand's product or service. In this analysis, we will try to

find out how these connections that customers make with' Consumer Spending' and'

Product' influence their choice of purchase. In other words, we will attempt to

spending is viewed by consumers and whether it influences them in buying the

product.

Synthesis of the Literature

In this research we will attempt to find what are the effects of advertisement in

consumer purchasing decision. In previous studies certain variables were found to

have an impact in consumers. This is briefly discussed below:

People nowadays, have access to the endless supply of advertisement. They fancy

something new, entertaining and something that might catch their attention. Boring

advertising will not last long enough in the eyes of customers. Hence, entertainment

has been called an important advertising strategy to increase the effectiveness of

advertising and to implore them to make a purchase.

Familiarity created by advertisement for a certain brand is also an important factor

that affects consumer buying behavior. In the research with customers Macinnis and

Park explores the impact of popular songs on advertisement and consumer behavior.

Consumers expressed satisfaction for products with popular songs in their study, and

a significant relationship was confirmed between the degree of familiarity of the

songs in the advertisement and their friendliness.

Social role and image reflect that the advertisements affect the individual style of life

and the extent to which a person tries to portray him or herself in a socially
acceptable way.

Advertisement is not only selling products and services but also sell image and

lifestyle. Consumers learn about new life style, image and trend through ads (Burns,

2013). Advertising promote social messages and life style through illustrating the

position of ideal consumer and stimulate social action toward purchase of that

product.

Culture is what a people do, or the total life ways of a people, the social legacy the

individual acquires from its group. It is the way things are done. This generational

diversity has greatly influenced Filipino society's development to what it is now, and

is expressed in both Filipino literature and performing and visual arts.

Values are enduring expressions of culture. Values express what is important to a

culture in words and deeds and because of that advertising has to be consistent with

values, but cannot change them easily or quickly. It is therefore senseless for an

advertiser to speak in any substantive way about using advertising to change the

values. Advertising needs to be careful how its message will be transmitted.

Consumer purchasing decision refers to the processes involved in choosing,

purchasing, using or disposing of individuals or groups of products, services, ideas or

experiences to suit their needs and desires.

Advertising spending also creates positive impression about a brand in the minds of

the consumers. Aaker and Jacobson (2009) also find a positive relationship between
advertising and perceived

quality. Hence, advertising spending is therefore positively related to perceived

quality, leading to higher purchases from that brand as consumers generally prefer to

purchase from a well-known brand to avoid disappointment over quality.