Recently, the world has grown to be highly competitive and speedy everywhere. So, advertising has become an integral part of modern life throughout the world. Modern manner of advertising now causes several ethical issues in marketing trend.
International Journal of Management Volume 11, Issue 03, March 2020, pp 419-426 Article ID: IJM_11_03_044 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=11&IType=3 Journal Impact Factor (2020): 10.1471 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication Scopus Indexed EFFECT OF SURROGATE ADVERTISEMENT ON CONSUMER RESPONSE IN INDIA Abin P Jose Assistant Professor in Commerce St Gregorios College, Kottarakkara, Kerala, India Reshma Roy Assistant Professor in Commerce Marian College, Kuttikkanam, Kerala, India ABSTRACT Recently, the world has grown to be highly competitive and speedy everywhere So, advertising has become an integral part of modern life throughout the world Modern manner of advertising now causes several ethical issues in marketing trend Surrogate Advertising is one among the apparent trends of advertisements in advertising industry in India This trend is clearly helpful for the effective advertisement of many banned products in India As a result, the indirect advertisement of such products brings about strong effects on consumer response This creates the duplication of one product’s brand image which is helpful to promote another product of same brand For instance, the advertisement of Bagpiper soda rings in the ears and flashes in the eyes of the consumer the memory of the hot drink which has the same brand name Thus, the advertisement of the soda acts as a surrogate to liquor manufactured under the same brand name Here, an attempt has been made to realize the various sorts of effects on surrogate advertisement on consumer’s perception in India Keywords: Surrogate Advertisement, Consumer Perception, Banned Products, Brand Images Cite this Article: Abin P Jose and Reshma Roy, Effect of Surrogate Advertisement on Consumer Response in India, International Journal of Management, 11 (3), 2020, pp 419-426 http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=3 INTRODUCTION The original meaning of the word Surrogate is “Substitute” It really does not mean ‘fake’ or ‘bogus’ This kind of advertisement occurs by manufacturing and marketing harmless products with the brand name of harmful and alcoholic products already launched in the country That is, tobacco and liquor companies manufacture and market products under the same brand name of their first harmful products In modern world, advertising uses all types of media to propagate http://www.iaeme.com/IJM/index.asp 419 editor@iaeme.com Effect of Surrogate Advertisement on Consumer Response in India its message The media include television, newspapers, magazines, journals along with radio, internet, contests, posters, sponsorships, clothes, events, colours, sounds, visuals etc The advertising industry consists of companies that advertise agencies that create the advertisements, the media that carries the advertisements and a lot of people like copy editors, visualizers, brand managers and researchers etc In short, it can be realized that advertisement of any kind plays a key role in promoting a particular brand or product However, in addition to some positive results of advertising, it has also some negative effects on society Such a sort of advertising is “Surrogate Advertising” In India, Surrogate Advertisements are used mainly in the tobacco and liquor industry Since, 1995, India has taken a strong stance on the prohibition of the advertising tobacco and liquor products on all media, because such products have adverse effects on citizen’s health Consequently, the reputed companies were forced to rely on alternative means of advertising which resulted in the introduction of surrogate advertising in India For example, now we see major liquor brands promoting their club sodas, CDs, playing cards and mineral water etc to cram the brand names into the heads of the customers For this, they make use of the support of celebrities also Just like Bagpiper, brands like Kingfisher and Wills employs the same techniques to draw the attention to their products Kingfisher has promoted everything from bottled water to soda, to calendar under the same brand name OBJECTIVES OF THE STUDY To analyse consumers awareness towards surrogate advertisements in the major states of India To assess the influence of surrogate advertisements on consumers To realize the impact made by surrogate advertisements on consumers buying decision To learn about the awareness of consumers towards surrogate advertisements To understand whether surrogate advertisements affect in positive or negative manner to manufacturers of banned products REVIEW OF LITERATURE According to Prateek Maheshwari, Nitin Seth, Anoop Kumar Gupta (2014) This paper has been reviewed accessible literature on advertisement impact regarding different advertising media, identified major gaps in the literature and found out future research prospects in connection with critical analysis of literature It has been noticed that the development of the advertisement impacts in literature from 1964 to 2013 highlights the change in the focus of researchers from traditional to modern media It has been recognized that different dimensions were considered in various media for determining advertisement effectiveness which adds to the complexities and ambiguity of the subject In the opinion of Varalakshmi T (2013) It is imperative to explore the positive dimensions of surrogate advertisements & to investigate its impact on consumer buying behavior, thereby its consequence on company’s brands and explained all aspects of surrogate advertising which are like two sides of a coin The trend followed by such ads could prove to be boon for big and established players since they result in higher brand recall value, thereby helping them to push their banned products further Surrogate ads have proved themselves a strapping& victorious marketing strategy for the forbidden products Surrogate marketing at best bring huge profit to the marketers, but leads customer to the water! Hence it’s offered a choice to the customers whether to accept this or not Regarding Kirti Singh Dahiya and Kirti Miglani (2013) Relevant studies should be conducted to analyse advertisements which were promoting the banned products to promote through indirect advertisements Different product categories have created and shown in the http://www.iaeme.com/IJM/index.asp 420 editor@iaeme.com Abin P Jose and Reshma Roy advertisement under the same brand name of banned to promote products The chief aim of these advertisements is to create brand recall of the latent product in the minds of the consumers Another aim of this kind of advertisement is to create brand positioning of banned products for promoting products in the sub conscious mind of the customers These advertisements turn illegal into legal activities The issue of emergence of surrogate advertisements should be analyzed in detail In the opinion of Sushma C, Sharang C (2005) It is essential to evaluate whether these advertisements were for the proposed product, or for tobacco products with same brand name The advertisements of plain pan masala seen on Indian television were a surrogate for the unbanned tobacco products bearing the same name Pan Masala came to be a recent evil habit in India and was marketed with and without tobacco Regarding Sania Sareen (2013) The paper laid stress on the innovations taken by the government to solve the issue of surrogate advertising as well how the industry negates all the facts concerning surrogate advertising The various methods through which this issue can be successfully solved have also been highlighted The new initiatives taken by industry have promoted the products This fact has also been shortlisted and a few case studies of the how companies are reaping up the benefits of surrogate advertising have been discussed RESEARCH METHODOLOGY The present study comprises primary and secondary method of data collection are used The primary data can be collected by using Questionnaire The secondary data has been collected from the available literature from Text books, Journals, Magazines, Newspapers, Annual reports and from various websites 4.1 History of Surrogate Advertising It is generally believed that surrogate advertising originated in Britain The ladies especially married women there began protesting against liquor advertisements Naturally, this provoked their male folk The protest of the house wives became so wide and vigorous that the liquor advertising had to be banned Unable to find no other way out the brand owners decided to promote fruit juices and soda under the brand name of liquor This marked the first step towards Surrogate Advertising SURROGATE ADVERTISING IN INDIA Almost the same development occurred in India also Thus, the Cable T V Regulation Act banned liquor and Cigarette Advertisements in 1995 Here also the brand owner were compelled seek alternative ways One example is the launching of Bacardi Blast music CD Anyway, several liquor companies began sponsoring and hosting glamorous items Some others began distributing T-Shirts, Drinking Glasses, Caps, Key chains etc with brand names displayed on these products At present, tobacco and liquor ads are banned from TV and radio in India The print media have been allowed to display only tobacco ads with the statutory warning of “Smoking is injurious to health” This accelerated the surrogate ads of liquor and various tobacco related products The brand owners primary object is to help their brand names remain alive in the minds of the consumers Advertising Standards Council of India(ASCI) took seriously a complaint against United Breweries for an advertisement for Sand Piper Malt Beverage created by Triton Communications This came to be a surrogate advertising for a liquor brand The issue took a new turn with the Central Government deciding to ban tobacco companies from sponsoring sports and cultural events The same thing happened in the matter of liquor products In addition to a ban on smoking in public places, sale of tobacco products, liquor products to minors has http://www.iaeme.com/IJM/index.asp 421 editor@iaeme.com Effect of Surrogate Advertisement on Consumer Response in India been banned Inspite of all these, still Surrogate Advertising cannot be checked chiefly because the agencies including NGO’s not have the courage enough to implement the restrictions The ASCI seems to feel the government has over reacted Anyway, some social activists believe that there is clear conflict between health and economic interests of the country LEGAL ENVIRONMENT ON SURROGATE ADVERTISING Networks (Regulation) Act 1994 states: “ Provided that a product that uses a brand name or logo, which is also used for Cigarettes, Tobacco Products, Wine, Alcohol, Liquor, or other intoxicants, may advertised on cable service subject to the following conditions: • The visuals of the advertisement should display only the product being advertised and not the prohibited in any form or manner • The advertisement should not make any direct or indirect hint to the prohibited products • The advertisement should not include any manifestations or phrases promoting prohibited products • The advertisement should not employ particular colours and layout or presentations associated with prohibited products LEGAL PROCEDURES LEADING TO SURROGATE ADVERTISEMENTS a) Prohibition of advertisement of harmful materials In 1995, all the advertisements about alcohol and tobacco products banned This legal step paved the way for the manufacturers to resort to Surrogate Advertising b) The restrictions imposed by Excise on Licenses Usually, the manufacturers of Liquor items both in small scale manner and in large scale manner are required to take license for it and register the firm Certain other rules also have to be obeyed by them c) State Government’s venture to bridle excessive trade of raw materials Full control was imposed on the prices of the raw materials such as ethanol, molasses etc by both State and Central Governments d) Development and Regulation Act 1956 Those who take up the business of manufacturing intoxicating materials were ordered to take a license for it and also register the industry concerned e) Control on licensed capacity For expansion, special license was required f) Various taxes and duties were required from bottling to sales stage The amount varying from state to state 7.1 Prohibition in India Prohibition was imposed, immediately after independence, in the state of Bombay During the early part of 1970’s, a lot of rural women in different parts of the country began to hold vehement protest against the sale of liquor in their premises They believed that liquor provoked their husbands to indulge in domestic violence This was the first large scale protest movement against liquor in India The Information and Broadcasting Ministry of India banned the advertisements of intoxicating substances such as Liquor, Tobacco products etc in 1995 http://www.iaeme.com/IJM/index.asp 422 editor@iaeme.com Abin P Jose and Reshma Roy Soon after the ban, the companies went on advertising their liquor and other substances by means of Surrogate Advertisements DATA ANALYSIS AND INTERPRETATION 8.1 Gender Gender Male Female 8.2 Age Age 18-25 26-35 36-45 45& Above 8.3 Educational Qualification Educational Qualification Graduate Post Graduate Illiterate http://www.iaeme.com/IJM/index.asp 423 editor@iaeme.com Effect of Surrogate Advertisement on Consumer Response in India 8.4 Are you conscious about the concept of Surrogate advertisement? Agree Neutral Disagree 8.5 Which aspects inspired more while choosing your brand? Peeer Group Family Work Place Advertisement Others 8.6 Are advertisements altering your impression about product? Agree Neutral Disagree http://www.iaeme.com/IJM/index.asp 424 editor@iaeme.com Abin P Jose and Reshma Roy 8.7 Are you purchasing a product after observing its ads? Agree Neutral Disagree 8.8 In your opinion, what sorts of advertisements have great impact over banned product? TV Radio Print Media 8.9 Does a Surrogate ad prompted you to buy a particular product? Agree Neutral Disagree FINDINGS i ii iii iv v vi Majority of the respondents are male ie, 80% Many of the respondents have been found to be of the age group between 26-35 years 80% of the respondents are Post Graduate, 15% were found to be Graduates Many of the respondents are conscious of Surrogate Advertising Many of the respondents prefer Advertising 88% of the respondents seem to feel advertisement alteration about product http://www.iaeme.com/IJM/index.asp 425 editor@iaeme.com Effect of Surrogate Advertisement on Consumer Response in India 10 CONCLUSION According to the thorough study, surrogate advertisements caused positive effects on consumer responses in India Generally, the consumers give much importance to the surrogate advertisements coming in media especially in TV Programmes They tend to choose their brands depending upon the surrogate ads Many customers heavily depend on such ads the believe in its positive impact of helping in improvement of brand awareness and even financial returns To put it briefly, most of the customers are not against the surrogate ads Eventually, the decision to accept or reject surrogate ads lies in the hands of consumers REFERENCES [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] Maheshwari P et al, Advertisement Effectiveness: A Review and Research Agenda, International Journal of Social, Education, Economics and Management Engineering Vol: 8, No: 12, 2014 Dr V Maheswari, A Study on Consumer Perception and Satisfaction of Water Purifier in Kumbakonam Town, Journal of Management, 6(2), 2019, pp 240–246 Dr V Antony Joe Raja, A Study on Consumer Perception in Facilities Management Among the Middle income Public in India for Various Analytical Factors Applied in the Strategic Management, International Journal of Intellectual Property Rights (IJIPR), Volume 5, Issue 1, January - June (2014), pp 01-17 Varalakshmi T, An Empirical study on Surrogate advertisement, The International Journal of management, ISSN 2277-5846; 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