De La Salle University-Dasmarinas

College of Business Administration and Accountancy

Marketing and Advertising Department
A.Y 2014-2015

Influence of In-Store Media/Advertisement

To the Consumer Behaviour
Of Penshoppes Target Market

Submitted to:

Ms. Chona Bautista

Submitted by:

Caguimbay, Mair Kathleen A.

Ramos, Paula Mae R.
Salazar, Clarisse Joy A.
Zavalla, Robbie D.

Table of Contents

ABSTRACT--------------------------------------------------------------------------------------------

INTRODUCTION------------------------------------------------------------------------------------

I. Research Problem

A. Background of the Problem--------------------------------------------------------------

B. Statement of Research Problem---------------------------------------------------------

C. Research Objectives----------------------------------------------------------------------

II. RESEARCH FINDINGS------------------------------------------------------------------------

III. CONCLUSION-----------------------------------------------------------------------------------

IV. RECOMMENDATIONS-----------------------------------------------------------------------

V. APPENDIX-----------------------------------------------------------------------------------------

A. Research Methodology--------------------------------------------------------------------

B. Statistical Analysis-------------------------------------------------------------------------

C. Reference------------------------------------------------------------------------------------

Abstract

This paper investigates the effectiveness and efficiency of an in-store video in a

Penshoppe Store here in the Philippines. Measures of former in-store media effectiveness studies
are first reviewed. Then, this study replicates the research questions and study using a sample of
70 Filipino shoppers who were surveyed to obtain shopper perceptions, attitudes toward in-store
video advertisements and the corresponding effect on purchase behavior. Implications about
Penshoppes in-store media are described at the end of the paper.

Introduction

PENSHOPPE is the flagship brand of Golden ABC, Inc., a leading fashion house from
the Philippines. The brand is known for its sophisticated take on casual wear and is the top of the
mind fashion brand in the country today.
Established in Cebu in 1986, the brand initially conquered the Visayas and Mindanao
markets. Penshoppe then expanded to Metro Manila and the first boutique opened its doors in
SM City North EDSA in 1991. Since then, Penshoppe's network of stores has grown to over 300
sites, all strategically located in the key areas where its target demographic shopped.

With its 27-year strong heritage in up-to-date, global design and style; innovative
marketing and advertising campaigns and strategies; and keen business acumen, Penshoppe is
poised and rearing to bring its own unique brand of casual wear to the rest of the world.
Marketers view in-store advertising as a critical medium to influence consumers brand
decisions. Both retailers and brands understand that advertising in-store, at the time many
purchase decisions are made, serves as an impactful method of reaching shoppers. While there is
no definite consensus among researchers regarding the percentage of purchase decisions that are
made in-store, Primary Rate Interface (PRI) has asserted that based on available research, 50-60
percent of in-store purchases are spontaneous. Even if the industry cant agree on a percentage,
there is consensus that in-store media advertising helps to trigger memory recall, effectively
introduces new products, promotes sale items and educates consumers.
Accepting that in-store media advertising is advantageous for marketers and retailers, an
emerging concern is the effect of in-store competitive advertising interference on consumer
behavior. Consumers are exposed to an increasing amount of advertising messages on average,
3,000 marketing messages each day. Yet it appears that marketers intended solution to
advertising avoidance is simply increasing the number of ads. However, this results in a high
degree of advertising clutter.
This research is conducted to know the effectiveness of the in store advertisement of
Penshoppe. In-store advertisement such as In-Store Digital Screens which are TV monitors
located at the checkout counter in convenience stores deliver advertising messages in a
continuous, content-driven loop of custom programming providing information and
entertainment.

I.

RESEARCH PROBLEM

i.

Background of the Problem

In-store media may not be attractive on Penshoppe consumer because they are
more engaged in the Out of Home (OOH) Medias. The public, especially the target market of
Penshoppe sees TV ads, billboards, magazines, newspapers brochures which attracts them
and leads them to the awareness of the products and the brand.
Usually, Filipino consumers go to the store when they are already persuaded or
influenced to buy a product. Just like in some other cases, their target markets go to the store
when they already decided to buy a product(s), others also visit and purchase a product
without seeing an in-store ads. What they are going to do is just to choose what type or
designs of the clothes or products they want. Meaning, they are not affected by the in-store
media but rather they go and buy to the store because they are already affected by other
media or just because of their needs. This in-store media of Penshoppe tries to affect the
consumer behaviour of their target market, but how it will affect when the consumers are
already affected even before they see or hear the in-store advertisement. Somehow it will be
a source of the brand recall but not totally to the buying behaviour of the consumers.

ii.

Statement of the Problem

We conducted some possible problems according on how influential an in-store

media or advertisement is to the Penshoppes target Market: Penshoppes OOH Media may
be more attractive to their consumers rather than the In-store media; In-store media of
Penshoppe may also not affect the consumer behaviour of their target market.

iii.

Research Objectives

1. To know how attractive the in-store advertisement of Penshoppe is.

2. To know the preferred advertising mediums of the target market.
3. To know if the in-store advertisement or media affects the buying behaviour of the
consumer.

II.

RESEARCH FINDINGS

The survey conducted had a total of 70 respondents.40% of them prefer the use of
Billboards as the advertising medium while 36% prefer TV for choosing the brand of clothes.
The lowest preferred medium is Newspapers with only 1.5%.
Ninety-four percent of the respondents have visited Penshoppe stores near them, Most
of which visit the store once a month but some visiting up to 8 times a month. More than
70% say that they already have intent to purchase before even seeing the in-store ads.
Eighty-five percent say that they saw the in-store video advertisement meaning that
the in-store advertisement could really attract attention and has a good chance of being seen
and that 43% of them recall the products displayed up to some degree. 89% say that they
have already heard or seen the product displayed in the video advertisements beforehand.
Eighty percent say that that they find the current in-store video advertisement/s appealing
to them. However after viewing the in-store advertisement, 73% said that they did not
purchase the products displayed in the video advertisement.

ii
III.

CONCLUSION

Through the result of the survey we can say that the target market is aware and
already familliar with the Penshoppe. We conclude that in-store advertisement of Penshoppe
was not that effective to the buying behaviour of their target market. In-store ads only catches
the attention of the target market and recall them but it never persuades or influenced them to
buy the product/s. Consumers prefer Billboard Ads and TVCs than in-store ads.

iii
IV.

RECOMMENDATION

After seeing the results of the survey conducted, Penshoppe should either focus on
billboard ad which is the medium most respondents prefer for branded clothes. They may
also change the commercial shown in the video; make it more appealing or interesting to the
target market.
Penshoppe can less their cost if they were to remove their in-store video
advertisements and rather use the funds or budget for fashion shows, special events or other
advertising schemes. They may also add TV commercials to be operated or played into top 3

leading TV networks: GMA 7, ABS-CBN and TV5 since most of the target markets are teens
who are more engaged into this type of medium.

iv
V.

APPENDIX

i.

Research Methodology

The research type used for this topic is mostly primary research. The primary
research method used is a survey since our research is based on the quality, quantity of
viewers, publicity and visibility of the in-store advertisements. The target respondents of our
survey are those aged 16 to 30, Class C minus and above and living in CALABARZON,
Manila or other provinces in Luzon since those of which is the target market of Penshoppe
here in Luzon, Philippines. The survey was to be conducted on the month of September 2014
up to the 1st week of October 2014 with a minimum of 50 respondents. The survey was
conducted online through social media sites because teens and young adults are commonly
present in these places and because they prefer answering online surveys rather than surveys
conducted frontally (for privacy reasons and for easier answering).

The survey questions were based from the other research survey questionnaires (see
reference) conducted with the same topic(s) related to our research. It aims to know if the
respondent is a previous visitor of a Penshoppe oulet, has seen the in-store video
advertisement and is somehow enticed to purchase the product/s displayed and/or has been
given awareness of Penshoppe and its products. It also aims to know the respondents
preferred advertising medium for branded clothes like Penshoppe and their response towards
in-store advertisements.
v

i.

Statistical Analysis

Table 1
Preferred advertising media in choosing brand of clothes
Billboards
Television
Magazine
Newspaper
Radio
Total:

Respondents
28
25
14
3
1
70

Percentage
40%
36%
20%
3%
1%
100%

As shown in Table 1, the most preferred advertising media in choosing the brand of
clothes are billboards. This accounts for 40% of total 70 respondents; followed closely by the
television with 36% preference; 20% for magazine, 3% for radio and newspaper with least
preference of 1%.

Table 2

Have visited a Penshoppe store

Yes
No
Total:

Respondents
66
4
70

Percentage
94%
6%
100%

As shown in Table 2, almost all of the respondents visited a Penshoppe store near them.
Only four (4) of them who does not have time to visit the store.

Table 3
Number of times of going to a Penshoppe store monthly
Once
Twice
Thrice
Others
Total:

Respondents
31
18
15
6
70

Percentage
44%
26%
21%
9%
100%

As shown in Table 3, most of the respondents go to a Penshoppe store once a month

(44%); others, twice a month (26%), thrice a month (21%) and the rest doing it as need arise.

Table 4
Intent to purchase before viewing an in-store advertisement
Yes
No
Total:

Respondents
56
14
70

Percentage
80%
20%
100%

As shown in Table 4, 80% of the respondents intended to buy or purchase the product
before viewing an in-store advertisement. 20% viewed first the advertisement.

Table 5
Seen a video advertisement inside the Penshoppe store
Yes
No
Total:

Respondents
60
10
70

Percentage
86%
14%
100%

As shown in Table 5, 60 out of 70 or 86% of the respondents have already seen a video
advertisement inside the store.

Table 6
Heard/seen the products before viewing an in-store advertisement
Yes
No
Total:

Respondents
62
8
70

Percentage
89%
11%
100%

As shown in Table 6, majority of the respondents or 89% have already heard/seen the
product before. Those who did not account for 11%

Table 7
Remembered the products displayed/showed in in-store advertisement
Yes
No
Total:

Respondents
30
40
70

Percentage
43%
57%
100%

As shown in Table 7, as to how long the respondents could remember the displayed
products, more than half of the respondents or 57% couldnt easily remember them. Only 43% of
them remember the products displayed.

Table 9
Video advertisements of Penshoppe are appealing
Strongly Agree
Agree
Disagree
Strongly Disagree
Total:

Respondents
4
57
7
2
70

Percentage
6%
81%
10%
3%
100%

As shown in Table 9, the result showed that 81% of the respondents agreed that the
video advertisement/product is appealing to them; 6% strongly agree, 10% disagree and 3%
strongly disagree.

Table 10
Bought the products/items displayed after viewing the video ad
Yes
No
Total:

Respondents
19
51
70

Percentage
27%
73%
100%

As shown in Table 10, the result showed 73% of the respondents bought the product/
item displayed even without viewing the video advertisement. And 27% of them purchased the
products otherwise.

ii.

References
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%3d
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http://www.sensorymax.com/visual/video-marketing-digital-signage.html
http://www.sensorymax.com/visual/research-case-studies-visual.html
http://eds.b.ebscohost.com/eds/detail/detail?sid=f6f68d82-0f0c-4e37-bdb2758a78254539%40sessionmgr198&vid=0&hid=115&bdata=JnNpdGU9ZWR
zLWxpdmU%3d#db=bth&AN=79343107
http://eds.b.ebscohost.com/eds/detail/detail?sid=89fa7750-73c1-4a55-bdb9fb5d86c0976d
%40sessionmgr113&vid=0&hid=115&bdata=JnNpdGU9ZWRzLWxpdmU
%3d
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