Caution Notice

Volume 5, Issue 2

Home / Journal / Browse Issues / Journal Of General Management Research /
Volume ,5 Issue 2

Influence of Advertisement Appeals on the Investment Decisions of Investors in India


Pallavi and Dr Rishi Raj Sharma

  1. Assistant Professor, Institute of Business Management, GLA University, Mathura(Research Scholar, University Business School, Guru Nanak Dev University, Amritsar)
  2. Professor, Department of Management Studies, Regional Campus-Gurdaspur Guru Nanak Dev University, Amritsar

Purpose: The study attempts to understand the impact of the mutual funds advertisement appeals on purchase decisions of customers. The study compares the effect of two types of appeals, i.e. emotional and rational advertisement appeals on the consumer attitude and product purchase decision.

Methodology: The present study is experimental in nature. The sample selected for the survey consists of 116 respondents belonging to the age group of the 18-21yrs. The data had been collected from undergraduate and graduate student studying in Private University in Mathura region. The questionnaire was distributed to the respondents which consist of 20 statements on a -five-point Likert scale, which judge the advertisement influence on the respondents.

Findings: The study reveals that advertisement appeal, i.e. (emotional and rational) has a significant effect on the mindset of the respondents. The rational advertisement creates a feeling of fear and insecurity whereas the positive emotional advertisement gives them motivation and encouragement.

Limitations/Future Research: The study consists of respondents only confined to private university situated in Mathura region only. Therefore the results cannot be generalized.

Value/Contribution: The present research contributes to the advertisement literature. The results of the study are helpful for the marketers, policy makers, researchers, and advertisers.


Investment decisions, mutual funds, promotional activities, advertisement.

  1. Akbari, Mahsa (2015). Different impact of advertising appeals on advertising attitude for the high and low involvement products, Global Business Review, 16(3), 478-493.
  2. Aaker, Jennifer L. & Williams, Patti (1998). Empathy versus Pride: The Influence of Emotional Appeals across Cultures, Journal of Consumer Research, 25(3), 241-261.
  3. Aaker, D. & Norris, D. (1982). Characteristics of TV commercials perceived as informative, Journal of Advertising Research, 22, 61‐70.
  4. Anderson, Eric T. & Simester, Duncan (2011). Advertising in a Competitive Market: The Role of Product Standards, Customer Learning and Switching Costs, Retrieved from https:// Simester-D%20Title%20Paper%20Abstract- Advertising%20in%20a%20Competitive%20 Market.pdf.
  5. Aydogdu, Murat & Wellman, Jay W. (2011). The Effects of Advertising on Mutual Fund Flows: Results from a New Database, Financial Management, 785-809.
  6. Abraham, M. and L.M. Lodish (1990). Getting the Most Out of Advertising and Promotion, Harvard Business Review, 3, 50-63.
  7. Cronqvist, H. (2006). ‘Advertising and Portfolio Choice’, Claremont McKenna College, Working paper.
  8. Bailey, Warren. Kumar, Alok & Ng, David (2011). Behavioral biases of mutual fund investors, Journal of Financial Economics, 102, 1-27.
  9. Capon, Noel; Fitzsimons, Gavan J. & Prince, Russ Alan (1996). An individual analysis of the mutual fund investment decision, Journal of Financial Services Research, 10, 59-82.
  10. David, Taejun; Woong, Lee Tai & Haley, Yun Eric (2013). Effects of mutual fund advertising disclosures on investor information processing and decision-making, Journal of Services Marketing, 27(2), 104-117.
  11. Dogra, Satish Kumar (2012). Study on Investors Behavior in Response to Advertisements (With special reference to mutual funds), Journal of Radix International Educational and Research Consortium, 1(6).
  12. Dukes, Anthony J. (2008). Advertising and Competition, in Issues in Competition Law and Policy 515, ABA Section of Antitrust Law, 517-537.
  13. Ekerdt, David J. & Clark, Evelyn (2001). Selling retirement in financial planning advertisements, Journal of Aging Studies, 15, 55-68.
  14. Fishbein, M. & Ajzen, I. (1975). Belief, attitude, intention and behavior reading: An introduction to theory and research. MA: Addison-Wesley.
  15. Golden, L. & Johnson, K.A. (1983). The impact of sensory preferences and thinking vs feeling appeals on advertising effectiveness, in Bagozzi, R.P. and Tybout, A.M. (Eds), Advances in Consumer Research, Association for Consumer Research, Ann Arbor, MI, pp. 203‐08.
  16. Holbrook, M.B. & O’Shaughnessy, J. (1984). The role of emotion in advertising, Psychology and Marketing, 1(2), 45‐64.
  17. Hauff, Jeanette Carlsson & Nilsson, Jonas Jonas (2017). The impact of country-of-origin cues on consumer investment behavior: The moderating influence of financial brand strength and investment management style, European Journal of Marketing, 51(2), 349-366.
  18. Huhmann, Bruce A. (2005). Does mutual fund advertising provide necessary investment information?, International Journal of Bank Marketing, 23(4), 296-316.
  19. Leonidou, C.L. & Leonidou, N.L. (2009). Rational versus emotional appeals in newspaper advertising: Copy, art, and layout differences. Journal of Promotion Management, 15(4), 522- 546.
  20. Lin, L. (2011). The impact of advertising appeals and advertising spokespersons on advertising attitudes and purchase intentions. African Journal of Business Management, 5(21), 8446-8457.
  21. Lodish, L.M., M. Abraham, S. Kalmenson, J. Livelsberger, B. Lubetkin, B. Richardson & M.E. Stevens (1995). How Advertising Works: A Meta-Analysis of 389 Real World Split Cable TV Advertising Experiments, Journal of Marketing Research 32, 125-139.
  22. Jonsson, Sara; Söderberg, Inga-Lill & Wilhelmsson, Mats (2017). An investigation of the impact of financial literacy, risk attitude, and saving motives on the attenuation of mutual fund investors’ disposition bias, Managerial Finance, 43(3).
  23. Johar, J.S. & Sirgy, M.J. (1991). Value‐ expressive versus utilitarian appeals: When and why to use which appeal, Journal of Advertising, 20(3), 23‐34.
  24. Kaur, Inderjit & Kaushik, K.P. (2016). Determinants of investment behavior of investors towards mutual funds, Journal of Indian Business Research, 8(1), 19-42.
  25. Khanh, Nguyen Thi Thuy & Hau, Le Nguyen (2007). Preferred Appeals as a Reflection of Culture: Mobile Phones Advertising in Vietnam, Asia Pacific Business Review, 13(1), 21-39.
  26. Kothari, Rajesh & Sharma, Narendra (2009). Evaluating Indian Investors Response towards Service Quality of Mutual Funds Companies in India and Studying Changes in their Advertisement Information, Asia-Pacific Business Review, 5(3), 19-32.
  27. Kotler, P. & Armstrong, G. (1994). Principles of Marketing, 6 th ed., Prentice‐Hall, Englewood Cliffs, NJ.
  28. Korkeamaki, Timo; Puttonen, Vesa & Smythe, Tom (2007). Advertising and mutual fund asset flows, International Journal of Bank Marketing, 25(7), 434-451.
  29. Mattila, Anna S. (1999). ‘Do emotional appeals work for services?’, International Journal of Service Industry Management, 10(3), 292-307.
  30. McQuarrie, Edward F. & Statman, Meir (2015). How Investors Became Consumers, Journal of Macromarketing, 5(1), 89-97.
  31. Mohapatra, Debidatta Das (2012). Bridging the Gap in Rural Market: A study on technology use by banking and insurance sector, European Journal of Business and Management, 4(7).
  32. Mogaji, Emmanuel; Czarnecka, Barbara & Danbury, Annie (2018). Emotional appeals in UK business-to-business financial services advertisements, International Journal of Bank Marketing, 36(1), 208-227.
  33. Mushtaq, Ghausia (2014). The Attitudes of Consumers and its Effect over the Business in Life Insurance Companies, European Journal of Business and Management, 3(3).
  34. Prashar, Neha (2009). Factors affecting perception of investors towards Mutual Funds, Bvimsr’s Journal of Management Research, 1(2).
  35. Sharma, Rishi Raj & Chander, Subhash (2011). What’s Wrong with Misleading Advertising? – An Empirical Investigation, Asia Pacific Business Review, 7(1), 191-205.
  36. Shavitt, S. (1990). The role of attitude objects in attitude functions, Journal of Experimental Social Psychology, 26, 124‐48.
  37. Singh, Rajdutt S. & Mudoi, Mrinali (2013). Advertisement standard code of India – controlling the contents of advertisements in India, Retrieved from advertising+marketing+branding/Advertisement +Standard+Code+of+India+Controlling.
  38. Sirri, E. and Tufano, P. (1998), Costly search and mutual fund flows, Journal of Finance, 53(5), 1589-622.
  39. Stafford, M.R. (1996). Tangibility in services advertising: an investigation of verbal versus visual cues, Journal of Advertising, 25(3), 13‐28.
  40. Stafford, M.R. & Day, E. (1995). Retail services advertising: The effects of appeal, medium and service, Journal of Advertising, 24(1), 57‐71.
  41. Solomon, M.R. (1992). Consumer behavior. Boston: Allyn & Bacon.
  42. Vaughan, R. (1980). How advertising works, Journal of Advertising Research, 20, 27‐33.
  43. Yankow, J.J., Smythe, T.I., Jones, M.A. and Lesseig, V.P. (2006). ‘The impact of advertising on fund flows in alternative distribution channels’, working paper, Furman University, Greenville, SC.
  44. Zhang, Hongxia; Sun, Jin; Liu, Fang & Knight, John G. (2014). Be rational or be emotional: Advertising appeals, service types and consumer responses, European Journal of Marketing, 48(11/12), 2105-2126.
  45. Zanon, Johanna & Teichmann, Karin (2016). The role of message strategies in promoting eco- friendly accommodations, International Journal of Culture, Tourism and Hospitality Research, 10(4), 410-423.