Role of advertisements in consumer decision making

Advertisements play a significant role in consumer decision making related to products/ services. In fact, the customer perception gets influenced in different ways in varying degree in response to advertising stimuli presented by marketers, especially in the context of multitude of advertising tools and techniques applied by organized retail sector in the domain of point of purchase ads. One such technique that has gained attention of supermarkets and/ or hypermarkets is the use of floor advertisements. This study is perhaps a maiden attempt in Oman’s organized retail sector and attempts to investigate/ examine customer perception towards effectiveness of floor ads used in organized retail outlets. For the said purpose, primary data was collected by administering structured undisguised questionnaire amongst 100 respondents in Oman. The impact of select factors which are expected to contribute significantly to floor-ad effectiveness, viz.; floor- ad recall, floor-ad persuasiveness, attitude towards floor-ad, and floor-ad attractiveness has been examined. Further, the impact of floor-ad effectiveness on customers’ purchase intention as well as on his/ her word of mouth intention has also been examined. Structural equation modeling based on partial least square method was used to determine path coefficients in the proposed structural model. Based on the findings, it could be concluded that all relationships examined as per proposed structural model were found to be significant at 95% confidence level, except the relationship indicating impact of floor-ad recall on floor-ad effectiveness. This study is expected to help marketers make informed decisions related to channelizing advertising budgets concerning floor-ads in organized retail sector, besides providing some useful insights to other scholars in phenomenon similar or related to the domain of research.

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