Impact of Advertisement on Consumer Decision

Abstract In this paper I have performed analysis of advertising from different perspectives. Beginning with definitions, purposes and historical evolution of advertising, I proceed to analyze theoretical foundations of advertising possible impact on consumer, categorizing the impact by several criteria and showing explicitly how that works in practice, and what are the reasons behind it. Also, I conducted analysis of consumer’s path through an advertising – what stages a consumer goes through while dealing with advertising. Further development of this analysis allows to determine that certain types of advertising campaigns and means are connected to certain stages of the product life-cycle. Possible development of the paper should be concentrated on analyzing the most modern means of advertising techniques and communications, such as virtual reality advertising, and the ways to analyse it – trending big data analysis or machine learning, for example. The main problem to address is the fact that historically, it was never possible to explain the effect of advertisement completely – one cannot distinguish, what proportion of sales exactly was contributed by promotion campaign. A trend, which will most likely shape advertising in the ongoing years, is deep integration of mobile devices and social networks into lives of people, which means that advertisement should become a better and different experience for the future generation of labor force, “Generation Z”.