Influence of advertisement on customers based on AIDA model

Abstract

The paper is based on information which is a combination of store advertisement and consumers' path inside the store along with product information. With this information, the authors fnd how advertisement affects the behavior of consumers when making the decision. Te fndings suggest that advertisement has a small impact on customers inside the stores. Null effect is determined, and one standard deviation in advertising has an impact on store trafc by 1.2%. But the impact at a lower end of the model is observed. One standard deviation in advertisement has impacted the store sales by 8.4%. Based on further data mining, the research has found that there is no signifcant improvement in the number of customers, but the increase in sales is because of the higher quantity of purchases by the existing consumers. However, the effect of advertisement on products placed in the same or nearby shelf is not found, the impact on product varieties in the same segment is also not found. Based on these research fndings, the authors fnd the right approach towards advertisement. Te research is limited to consumers of retail industry in a Tier 3 Indian city of a developing geographic segment only.