EFFECTIVENESS OF INTERNET ADVERTISING ON CONSUMER BEHAVIOUR
BY
(NAME OF STUDENT) (REGISTRATION ID)
In partial fulfillment of the requirements for the degree of
Master of Science (Business Administration)
302260065913000Under the supervision of
(Name of Supervisor)
Department of Business Administration,
NEWPORT INSTITUTE OF COMMUNICATI ON & ECONOMICS.
Karachi, (Year of Completing Degree)
1469390266700
In the Name of ALLAH,
The Compassionate,
The Merciful
DEDICATED
I dedicate my work to my PARENTS, Teachers and Friends.
ACKNOWLEDGMENT
All gratitude and thanks to Allah Almighty, kind, merciful and caring that gave me the courage to do the homework and complete it. I am very obligated to take care of the parents and to love those who managed to pray to reach this stage.
I am grateful to the great God who made me capable of completing the work presented in this report. It is because of his infinite mercy that this action has moved towards success.
I am very great full to my supervisor (SUPERVISOR NAME) NEWPORT UNIVERSITY, KARACHI for providing me guideline for the completion of this thesis report.
TABLE OF CONTENTS
DEDICATION PAGE * MERGEFORMAT v
ACKNOWLEDGEMENT PAGE * MERGEFORMAT v
CHAPTER 1:INTRODUCTION AND BACKGROUND01
1.1The Concept of Promotion011.2Internet Advertisement021.3Research Problems031.4Research Objective031.5Value of the Study04
CHAPTER 2:REVIEW OF LITERATURE 052.1Introduction052.2Theoretical Foundation of the Study052.3Advertisement and Internet052.4Integrated Marketing Communication062.5Effectiveness of Internet Advertisement072.6Consumer Behavior072.7Internet Advertisement and Consumer Behavior 07
CHAPTER 3:RESEARCH METHODOLOGY093.1Introduction09
3.2Research Design093.3Population of Study093.4Sample Design093.5Data Collection103.6Validity and Reliability103.7Data Analysis10
CHAPTER 4:ANALYSIS, RESULTS AND DISCUSSION OF DATA114.1Introduction114.2Daily Time Spent on Internet(hours)114.3Consumer Response to Online Advertisement124.4The Influence of Online Advertisement on Consumer Behavior Concerning Consuming and Buying 154.5Purchasing Tendency of Consumers After Seeing Internet Ads. 164.6Consumer Response on Advertisement on Being Informative about the Product, Goods and Services164.7Consumer Concerns about Internet Ads on being responsible for Leading Consumers to buy unnecessary Products………………………………………………………17
4.8Advertisement viewed for more time by consumers results in buying the products184.9What Consumers looks for Internet Ads.194.10Discussion And Findings.21
CHAPTER 5:CONCLUSION AND SUGGESTION235.1Introduction235.2Summary235.3Conclusion235.4Suggestion245.5Recommendation for additional Plans 24
REFERENCES25
QUESTIONAIRE26
LIST OF TABLES
Table No. Tittle Page No.
1 Daily Time spent on Internet (hours) 11
2 Ranges of Responses and No. of Respondents 14
3 The Influence of Online Advertisement on Consumer Behavior Concerning Consuming and Buying 15
4 Consumer Response on Advertisement on Being Informative about the Product, Goods and Services 16
5 Consumer Concerns about Internet Ads on being responsible for Leading Consumers to buy unnecessary Products 17
6 Advertisement viewed for more time by consumers results in buying the products 18
7 What Consumers looks for Internet Ads 19
LIST OF FIGURES
Table No. Tittle Page No.
1 Percentage and Frequency of Consumer Internet Ads. 12
2 Population Distribution in percentage bases on their liking & disliking of internet Ads. 13
3 Like to view ads on various electronic devices such as mobile, laptop and others 13
4 Consumer response about how they find online ads. 14
5 Percentage of consumers who are influence by internet ads. 15
6 Percentage of respondents who have bought or deny to have product after seeing internet ads. 16
7 Are Internet ads informative about the product, services and good that are advertised 17
8 Percentage of consumers’ response to internet leading them to buy unnecessary products 18
9 Percentage of consumers on the basis of their response about advertisement viewed for more time as impacting them to buy the product 19
10 Consumers look in internet ads 20
11 What do consumers look in an internet advertisement 21
CHAPTER ONE
INTRODUCTION AND BACKGROUND OF RESEARCH
Twenty first century has witnessed an increasing tendency of large population towards internet. It has multifaceted dimensions ranging from its implications on contemporary marketplace to its implications in terms of social interactions. Internet has been widely accepted in all domains due to its unique quality of adaptability, flexibility, personalization and interactivity. It has also impacted all modes of communication, electronic exchange and entertainment. Nonetheless, this progressive change delivered by this innovative technology has significantly impacted daily social life. Additionally, internet has transformed businesses on global scale that has resulted into transformation in business relationships between companies, retailer and consumer. Retailer has more services and products to offer its consumer on global scale.
Furthermore, internet is used widely for all sort of advertisement. All big businesses have turned their attention towards internet and employed the fundamental techniques of advertisement. In this regards, internet serves as an advertisement tool to get more attention from more people all over the world. Thriving businesses have sought to invest high sums of money into internet advertisement in order to gain profit on promotion. Since internet knows no boundaries, internet- advertisement is more proficient than other tools of advertisement. In short, internet has changed traditional techniques of advertisement throughout the globe.
Internet has provided more control not only to the producers but also to the consumer over services and product’s information. In contemporary times, consumer has more choice to decide from numerous services and products available on the internet from all around the world. It doesn’t take time, as happened in old days when shopping actually needed costumer to come a long way.
Consumer play a significant role in looking for online data available to facilitate the person to materialize his prospects in mind. These goals or prospects which a consumer seeks on the internet actually gives an insight into what influences his/her reaction to internet advertisement. Those advertisements which continuously pop up unnecessarily are aptly to be received unwelcomingly on the part of consumer.
Internet provides a platform for advertisement because it finds internet more flexible tool available in contemporary cyber era. Contrary to traditional methods of advertisement, internet advertisement has prospered more sporadically as it has more influence locally as well globally. Following these lines of arguments, present study is an endeavor to examine the effectiveness of internet-advertisement. Students of NEWPORT UNIVERSITY campus were considered for sample population in order to determine the connection among consumer behavior and advertising.
1.1 The concept of Promotion
Promotion is an organization’s framework for marketing its services, products and brand through any form of communication. It is done in order to highlight multiple advantages for the sole purpose to target the potential clients. Promotion strategies differ from company to company and area to area. But in contemporary times, when people have access to internet everywhere, promotion strategies for most companies interrelate to one another. The main objective of promotion has remained to reach maximum potential clients through providing awareness about the brand or product. Additionally, promotion is employed by advertisement companies with the objective to gain market share, build loyalty of the customer and most importantly grow the sales.
To achieve its time objectives, an organization need to build an effective strategy for promoting goods and services. One strategy is never enough for encompassing vast market space but a combination of different strategies is needed including: sale promotion, personal sales, advertisement, public relation and direct marketing or door to door marketing. These goals are achieved through allocating cost effective resources. In multimillion business firms, marketing offices are required to play many important parts; it is required to setup marketing budget, determine promotion-mix, allocate cost effective resources, supervise outdoor activities, measure the outcome and most importantly coordinate whole advertisement campaign.
Advertisement is mostly consumer oriented and so, it puts him alongside distributor and manufacturer. Factory manufacturers are concerned with promoting their products to the retailers who offer items to the customer. It is up to the manufacturer whether or not it want to put personal sale purchase or promotional-mix in advertisement into effect. Advertisement is advanced by companies to influence potential audience to buy services or products offered by that company. This profit oriented communication is normally achieved through a communication tools which operate through any medium: online advertisement, web-based social media, billboards, TV, print media and Radio. Advertisement are out where advertiser believes that they will reach to the largest most relevant audience.
1.2 Internet Advertisement
Internet advertisement has evolved with increasing internet usage in all parts of the world. It is comprehended in terms of promotion which utilizes internet as a tool to communicate with a specific purpose to achieve: to create awareness among the consumers to achieve maximum profit. Online advertisement includes ads on different pages that are recognized by search engines. Rich media, social networking ads, banners and pop up ads are various kinds of e- marketing. Online marketing, e-marketing and cyber advertisement are interrelated terms which are used synonymously to depict one sort of advertisement that is internet marketing. These online directories influence other forms of advertisements i.e. TV advertisement that influences viewers’ tendency to watch a specific kind of commercial. In case, the advertiser provides option that customers can respond to its advertisement then it allows customer to reach the advertiser through email, phone, website and messages. The responses from the customers are often quick and advertisers normally materialize these responses through continuous follow backs using the same methods of communication used by potential customer.
Consumer can get information about services and products by talking to various consumer of the same product and company for relevant services and products. Online advertisement is most successful form of advertisement as the customer has already chosen the platform (internet) on which advertiser is promoting the brand’s items. It is also proficient in providing an experiential situation to buyer through a virtual reality and thus, enabling the consumer to get information before buying the advertised items. Consumers’ feedback is a significantly evolving technique that is helpful for other customers as well as the company to make necessary changes to the products insofar as marketing is always customer oriented. In this regards, positive feedbacks are responsible for a successful promotion. It enables a marketer to control negative feedbacks after taking care of its customer’s concerns by making changes and showing organization’s commitment to gain their trust.
1.3 Research Problems
Contrary to other methods of advertisement, Advertiser is required to spend huge amount on marketing if the advertiser wants to get better results from internet-advertisement. The reason for this expensive sort of online marketing is that it requires more content ranging from sound clips, video clips, online friendly content, pop-ups, banner advertisements and interactive games.
In recent years, technology has advanced manifold and more swiftly than ever before. In this background of advancement in technology, internet has played an important part. Internet has helped modern consumer to look for multiple items available on thousands of different websites. Ecommerce websites have provided plateform to small as well as huge business to present their products on the websites and consumers can buy them online without bothering about going out and buying stuff for themselves in the market. Internet has given rise to virtual marketplace where people come online and search for their relevant products on multiple websites. After choosing most appropriate and desired product, the customer pays online and gets the product at home. Who can deny such a proficiency of purchasing a product online? According to their findings, 70% people use internet all the time worldwide. This increasing number of online users is not solely for the purpose to buy products. They are after serious work to do after internet has ushered a new era of communication for multiple purposes. So, the concern of this study is whether or not internet users are interested in online advertisements which are presented to them in form of banners, promotions, pop-ups etc. Most important concern of this study is to determine the resemblance value of these behaviors. Moreover, it is significant to look into online advertisement and to comprehend how did it effectively it operated among all target groups. What about the online advertisement is it effective over all target groups?
There is enormous research done in the domain of internet advertisement in order to comprehend its effectiveness on global population who has significantly involved itself with internet. In this respect, Wanjoga (2002) examined the consumer behavior as being molded by internet advertisement in Nairobi. The research showed that purchasers knew about the online advert but they were unable to comprehend and to measure the success effects of internet advertisement on vast majority of customers. Gong (2003) suggested, “future researcher can look into the impact of web advertising across different countries and culture to enhance the global understanding of web advertising effectiveness”
Present study is conducted in order to fill above mentioned gaps in academic research while determining the effectiveness and impact factor of internet advert on the behavior of consumer- who has always remained the fundamental concern of advertisement.
1.4 Research Objectives
This is conducted with some necessary objective; that is to:
Establish the claim that internet advertisement is a reliable method of advertisement.
Determine the relationship among buyer’s behaviour and decision that is taken in
order to purchase the advertised product
Determine the value of internet advertisement as being effective and creative as it creates awareness on global scale.
1.5 Value of the Study
This research provides benefits to business, government marketers and academic researchers who pursue this domain of research: impact of internet advertisement on the behaviour of the customer. Present study can acquire the ability to guide marketer regarding inclinations of consumer towards buying things. All this being successfully advertised through internet which has remained concerned with potential buyers among the herd of people who have no interest in the product.
It is basic to understand the attitude of the online customer to Internet advertisement before adapting the practise of internet marketing. This is uncovered by this study. In this background of arguments, internet has remained a significant toll of advertising which is always receiving audience across the globe and provides opportunity of all day long interactivity between consumer and the advertiser of the product. This seems important for local marketing companies to turn towards internet marketing as it has the capacity to regulate all business. This is true, at least, in contemporary era where people can buy a product from anywhere and receive it at home for free without spending any time. This study understands the value of internet as a tool of promotion and advertisement the same way it impacted commerce and trade in recent times.
For academic and scholars, the current study constructs the foundations whereupon further research might be dome in this domain. Furture researchers, advertisers and consumers can find an ample material from this study which is aimed at analysing the impacts of internet advertisement on the behavioural tendencies of people which lead them buy and consumer commercial products.
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter is dedicate to give, a clear understanding of Internet advertising concept and effectiveness of internet advertising.
2.2 Theoretical Foundation of the Study
Effectiveness of the advertising and promoting a product along with the impacts of advertising on consumers’ behavioral tendencies provide theoretical foundations for this particular study. There are ample researchers in psychology of emotions in relation to advertising techniques which evoked feelings may impact on customer’s behavior to advertisements that are displayed on various webpages, popups and search engines. Researchers had experienced that advertisement puts both negative and positive feelings when the aim is convince potential customer. The research of Inman, Brown, and Homer recommend pragmatically that “the strength of positive and negative feeling impacts could guide advertiser decision regarding executional strategies.”
The researchers have recommended that advertiser utilizes the positive effect of advertisement in order to create its impact on consumer to like the advertisement and after that make the purchases while negative effect evoke an uncomfortable situation that consumer wants the “solution” from the advertiser. In is unfortunate that there isn’t any assurance about the consumer experience which could give help determine the effectiveness of advertisement presented to customers. Present study exposes that such a mismatch between advertiser’s intention and consumer response happen very repeatedly in academic research.
2.3 Advertisement and Internet
From the inception of internet and after it was globally accepted as a changing tool for increasing facilities which the modern technology is referred to accomplish. Internet has changes all domains of knowledge and traditional techniques including advertisement. Meeker (1998) define that internet is a tool of mass communication from individuals from a communicating medium to big audience in market. The internet provides an alternative to interaction which is mostly occurring on applications, social media websites, emails, search engines and webpages.
Benefit for advertiser would be an opportunity in order to interconnect with customers insofar as the whole process is operated on the internet. It would also enable advertiser to run marketing company of their product and services in targeted manner and personalize to attain their objective. Importantly, surplus of marketing and advertising funds repeatedly noticed while projecting mass promotional messages to customers in the wake of global internet usage. Keeping this change in view, the aim of the advertiser should be to adopt techniques full of novelty and ought to readdress traditional methods of advertisement; thus online advertisement ought to be considered by advertisers and develop strategies to capture more customers.
Wolin and Korgaonkar (2002) explored that there exists a relationship among light and heavy web clients; and that these heavy clients are more inclined to watch internet advertisements. The study suggests that capturing the heavy clients and promoting products online would augment the sales. The comparison between internet and lighter clients, online advertisements are significant, helpful, supportive, entertaining and informative. On the other hand, the researchers argued that online advertisement is much valuable and equally difficult to comprehend due to complex issues get involve as people tend to change with time, age, geography, race, creed and nation to nation. Additionally, Ducoffe (1996) suggested that online advertisement and promotional marketing activities are informative, helpful and essential.
2.4 Integrated Marketing Communication
Internet is central to all changes that have taken place in marketing and advertisement trends. The internet has contributed more in integrated marketing communication techniques, by enabling marketer to communicate more specifically with individual consumer. The utilization of the IMC concept includes the progression away from the traditional marketing communication model for mass media for one-to one communication, or many to many communication model.
The presence of Internet in the promotional mix will not kill the utilization of mass media advertising channels for example radio, daily papers and magazines. However the Internet may decrease the requirement of mass media advertising. This will happen because the personal Computer with Internet access being used frequently by target audience as an effective communication channel to make both social exchange utilizing email and commercial exchange to purchase on the web. The advertising industry is being challenged to create more direct, personal and interactive communication with the target market through the use of internet.
Internet impacts the relationship between consumer and business. This impact creates new dynamics of communication which go along consumer to business. Internet advertisement, in this respect, has produced new communication forms between advertiser and consumer. Contrary to traditional forms of advertisement, internet advertisement gives more information to consumer in very short time. Internet ads shown for more time to the consumer also lead him to buy the product. The influence of internet marketing is very significant as compared to other forms of advertisement.
Watson, Pitt and Berthon explained that with the inception of online advertisement facilitates the advertiser to come into interaction with its consumers by providing excessive amount of details about the products. The researchers further argued that internet advertisement gives consumers enough control as they can find product details, product price, customers reviews etc. given by internet ads. So, the interaction between consumer and advertiser is now more dynamic due to internet advertisements.
2.5 Effectiveness of Internet Advertising
There are numerous researches that have took into account the significant effectiveness of online ads. There are numerous factors involved in it: user spending time on internet and how they respond to internet advertisement if it gets their attention. Mullarkey and Danaher endeavoured to provide insight into impacts of internet with reference to time duration. The researchers have argued that internet has effectively influenced the behaviour of consumers to buy the product if they spend time viewing the advertisement.
Hussherr and Dreze argued that advertisement characteristics are majorly the reason for getting consumer to actually go and buy the product which is displayed by advertiser. The researchers argued that repetition is major factor for getting consumers to consider the ad and buy the product. So, it concludes that information displayed to the consumer has significant impact than any other factor as it brings attention of consumer towards product details. Moreover, the researchers have found that advertisement clicks are pivotal to draw potential consumers towards the original site thus the chances are great that consumers will probably get along with buying the product.
Lafferty, Goldsmith and Mehta have contended that consumers, if they like the advertisement displayed to them, will recall or buy the product while those ads which fail to get the attention or liking of consumer will not lead him/her to buy the advertised product.
2.6 Consumer BehaviourThe concern of consumer behaviour is to examine the behaviour of consumers (groups, individuals and organizations etc.) while taking decision about selecting, buying, securing and using services and products in order to fulfil desire. This articulation of consumer behaviour shows that the relationship of consumer to the product has been created much earlier than purchase of services or product. The procedural initiation of purchasing and consuming takes start in consumers’ thoughts thus leading to categorize the services or products based on their advantages and to buy the product according to the decision.
The behavioural study of consumer is very important for analysing the tendency of consumer to whom online advertisement is displayed. Wide range of consumer choice, provided by online advertisement, bring forth new arenas for advertisement. With the help of internet ads, consumer interact with advertiser, give feedback and provides details for advertiser to make necessary changes.
2.7 Internet Advertising and Consumer BehaviourWith the inception of internet and its control over new forms of communication has provided advertisement new arenas for displaying and promoting the ads. Along with other factors involved in a successful advertisement campaign on internet, psychological factors are more vital. So, advertisers are concerned to know emotions, feelings, sensation and thinking so that it could utilize those advertisement techniques that are in accordance with consumer behaviour. Advertisement firms and producer companies are aimed at strengthening the interaction which is created due to internet advertisement. Those companies fail to prosper if they don’t consider consumer oriented approach; or don’t interact with their consumers; or don’t make necessary changes suggested by consumer reviews.
Online ads offer dynamic functions for their consumers as shown in the research of Suh K. and Yoo and Lee M. The researchers have argued that consumer behaviour is impacted more when advertiser comes into interaction with the consumer and takes the feedback given by consumer. This gains consumers’ trust in the product and thus leading him to take firm decision about buying more products through the same company. If the consumer is happy with the product then there are chances that the relationship would long last and every time new product is displayed by the same company, the consumers would buy it without fear of distrust in advertisement. The information that is provided by internet is related to the fact whether or not consumer approves it. If consumer approves the information about advertised services or products then there are chances that consumer would decide to buy the product.
At the point when customer measure the amount of benefits, he/she is attached with advertising and promotion and get emotionally attached to it. Most of the consumers are attached to advertisements because they identify beneficial aspects in the product advertised as enhancing joy. Internet advertisements do not produce same impacts on the consumers. Half consumer population is annoyed to see advertisements as being unnecessary and waste of their time. Some of the consumers’ responses to internet advertisements are centred in the view that it is responsible for leading them to buy unnecessary products. Though these reaction are not rational yet they are important to note these overt reactions to online advertisements. It also gives ideas to advertisers to consider these responses for introducing innovative techniques to get consumer attention towards ads and trustfully lead the consumer to buy the product and feel satisfied afterwards. If consumer posts some concerns about the product, the advertiser must interact and solve the issues addressed by customer reviews.
Furthermore, the repeated visualization of internet ads brings consumer to take decision for buying a product. Ads shown for more time are considered to get more attention from viewers and remind the consumer about product until one tends to buy it. Ads ought to be attention getter for materializing consumers’ conscious thinking which is responsible for producing certain consumer behaviours.
Cannon-Bard theory argues that it is innate human tendency to get an emotional attachment with something before they act upon it. So, in this regard if consumer gets emotionally attached to the product then it would be beneficial for advertisement campaign to get more consumer to the actual product. On the contrary, if consumer feels that internet advertisement are not beneficial and that they lead them to unnecessary online shopping then it would negatively impact consumer behaviour.
In the light of above discussion, it is evident that internet is an important tool for advertisement and internet has produces new arenas for advertisement. Additionally, internet advertisement produce a new set of communicational relationship between consumer and advertiser. The consumer behaviour is also a significant factor for deciding the success of an internet advertisement campaign. Furthermore, those internet ads which bring positive behavioural tendency of consumers are favourable for the product purchase and if it produces negative psychological impacts on consumer then internet advertisement would not successfully accomplish its goals.
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This portion of my study is dedicated to provide an all-inclusive research methodology which is employed to conduct whole research. This chapter is dedicated to give detailed articulation of descriptions and approaches involved in the main concern of this study that is to understand consumer behaviour as it is continuously impacted by online advertisements. Moreover, research instruments, research design, population target, information gathering and most importantly methods employed in this study for analysis of the data collected.
3.2Research Design
Present study is a descriptive research that includes collecting information which is to: define the eventful happening after that to organize data; to define it, arrange it and describe the information collected in descriptive manner. Sometimes, graphs, diagrams and charts are presented in this study in order to provide a short sketch of data collected. It is helpful for the reader to comprehend the issue in hand completely and without any vagueness. Most importantly, descriptive research is also significant for representing the real conditions in which information is distributed through internet. In this regards, this research employed description research apparatus to unveil the impacts of online advertisement of consumer behaviour.
3.3Population of the Study
This research target students of the Newport Institute of Communication ; Economics NICE on account of their experience and large percentage using the internet. Student of the NICE have access to internet through wireless connection there for accessing online advertising through social media is quite easy for them. Only 50 student of NICE campus were chosen for this research.
3.4Sample Design
This dissertation employs stratified sampling techniques in order to choose units for the research. Stratified sampling technique is carried on by dividing population sample (50 respondents) based on their views and inclinations about internet advertisement as impacting their behaviour as a consumer. This study takes up the claim that stratified technique is vital as it doesn’t only provide the benefits of concentrating upon significant subpopulations while permitting the utilization of various samples and for various sub populations while enhancing the accuracy.
3.5Data Collection
Present study has utilized primary data that was gathered utilizing of structure questionnaire. Utilizing this technique, a population sample of 50 students were taken as respondents for campus of NEWPORT UNIVERSITY while they were roaming in the campus. Furthermore, the questionnaire had open-ended inquires for guiding the respondents while they were filling it.
3.6Validity and Reliability
It has always remained a classical tradition of among researchers to look at the validity and reliability of the content presented in a research. So, this study inclined to offer validity of this research by sharing knowledge regarding internet ads and the way a person as a consumer reacts to it. Every student finished given survey questionnaire in the presence of the researcher and no questionnaire was filled with researcher’s presence.
3.7Data Analysis
Present research is carried on to measure the range of elements that are pivotal to the establishment of effects of online advertisement upon the behaviours of clients. This research also determines the connection between consumer behaviour as being impacted and transformed or changes and internet as being the cause of this impact. The measurement of responses were taken as determinant of respondents (consumer) emotional tendency to react towards specific internet ads while some are annoyed by continuously showing up online ads. The population is devided based on their responses to questions given to them for analysing online advertisement and its impacts on consumers behaviour or how consumers responds to internet ads as it impacts their purchasing behaviour. Frequency distribution and percentage of population sample is are employed in this study to comprehend information collected from the questionnaire for determining their behavioural tendency towards online ads. The information gathered from the questionnaire is put into tables and expressed through charts and graphs. Then it was analysed in descriptive manner to make it understandable for wider audience.
Now turning to the question of reliability, this study guarantees that this research is reliable while keeping in view that ‘reliability can be guaranteed by limiting sources of measurement. The collected information, through questionnaire, is supervised solely by the research who alone can assert the reliability of the research. Experimental testing was accomplished by specialist to recognize any flaws in the survey questionnaire for the sole purpose to reduce mistake mistakes of measurement and test for consistency.
CHAPTER FOUR
ANALYSIS, RESULTS AND DISCUSSION OF DATA
4.1 Introduction
The data was collected from 50 respondents from main campus of NCBA & E who are currently studying there. I collected the data after the questionnaires were filled by the respondents (consumers). The data collected from the questionnaires was put manually into the excel sheet for further analysis, results and discussions. The data for each question is presented in tables, graphs and pi-charts for comprehending the effectiveness of internet advertisement on consumer behaviour.
4.2 Daily time Spent on Internet (hours)
629348592519500The respondents were asked about how much time they spend on the internet to know how much impact an internet advertisement has on consumers. The time spent by the consumers.
Table 1
No. of hours Frequency Percentage
1 hr. 5 10%
1 to 2 hrs. 6 12%
2 to 4 hrs. 12 24%
4 to 5 hrs. 12 24%
Above 5 hrs. 15 30%
Grand Total 50 100%
According to Table 1, most students use internet for more than five hours. The highest 15 respondents of total population are using internet more than five hours while 12 consumers use internet for 4 to 5 hours, same number use internet for 2 to 4 hours, 6 consumers spend 1 to 2 hours and the lowest 5 consumers spend an hour or less on internet.
Figure 1
left2032000
Figure 1 shows the percentage and frequency of internet usage time. The lowest, 10% consumers are using internet for 1 hour while maximum 30% of the total population use internet for more than 5 hours.
4.3 Consumer responses to online advertisements
Consumers were asked if they pay attention to online advertisement while using internet or whether they like it or not? Mixed responses came from the respondents expressed in figure.
left24193500Figure 2
According to the above figure 2, 66% respondents responded that they do not pay attention to internet ads while 34% agreed that they pay attention to the ads.
The figure below shows the how many people like to see internet ads and how many dislike it.
left28575000Figure 3
According to figure 3, 52% respondents disliked to view advertisement on electronic devices such as mobile, TV and laptop etc. while 48% like to watch advertisement on these devices.
Table 2 will show consumer’s viewpoint on how they find internet ads.
Table 2
Range of Response No of Respondent %age
Creative awereness13 26%
Informative 12 24%
Irritating 12 24%
Waste of time 13 26%
Grand Total 50 100%
According to the table 2, comparatively equal share of responses came from consumers: 13 responded that internet is important for spreading creative awareness, 12 confirmed that internet is informative for them, while 12 respondents found internet ads as irritating and 13 responded that it is waste of their time to consider internet ads.
Figure 4 represents the percentage share of total population confirming their mixed responses to internet ads.
right24003000Figure 4
According to figure 4 displayed above, almost equal percentile of population finds the advertisement as 26% consumers find advertisements as informative, 24% find them creating awareness, 24% are of the view that advertisement are irritating for them while other 26% thinks it is waste of one’s time to consider these advertisements.
4.4The Influence of online advertisement on consumer behaviour concerning consuming and buying
The influence of online advertisement is assessed based on table 3 displayed below:
Table 3
Response Frequency %age
Large Influence 15 30%
Medium 18 36%
Extremely Low 17 34%
Grand Total 50 100%
According to table 3, internet advertisement has relatively medium and large influence: 15 consumers are highly influenced, by internet advertisement, on their behaviour that leads them to buy and consumer the advertised product. 18 Consumers have medium influence while 17 have extremely low influence on their buying and selling behaviour.
left23050500Figure 5
Figure 5 displays that 30% consumers are highly impacted by online ads concerning their buying and selling behaviour, while 34% consumers are moderately influenced and 36% are extremely less influenced.
4.5Purchasing Tendency of consumers after seeing internet ads
The respondents were asked if they had bought a product after seeing internet ads in order to comprehend the influence of internet ads on consumer behaviour to buy the product.
Figure 6left2355850
According to figure 6, 54% of consumers agreed that they have bought products after seeing ads on the internet while 46% have not purchased the product after seeing internet ads.
4.6 Consumers’ response on advertisement as being informative about the product, goods and services
The respondents were asked whether they agree with the statement that internet ads give information about services, goods and products or not. The data is displayed in table 4.
Table 4
Consumer Response Frequency distribution %age
Agree 28 56%
Disagree 14 28%
Not sure 18 16%
Total 50 100%
According to the table 4, the highest number of consumers have found internet ads as being informative about the product, goods and services, while 14 respondents said internet ads are not informative and 8 respondents were not sure about it.
left2406650Figure 7
According to figure 7, highest percentage 56% respondents find internet ads as informative while
28% don’t agree and 16% are not sure about it.
4.7 Consumers’ concerns about internet ads as being responsible for leading consumer to buy unnecessary products
Table 6 shows frequency distribution of total population based on their responses about internet leading consumers to buy unnecessary products:
Table 5
Consumers’ concerns about internet ads as being responsible for leading consumer to buy unnecessary products
Agree 17 34%
Disagree 18 16%
Not sure 25 50%
Table 5 shows that 17 respondents agree that they are lead by internet ads to buy unnecessary products, while 8 respondents disagree with it and 25 are not sure about it.
left2495550Figure 8
According to figure 8, half of the population sample was not sure whether internet ads are responsible for leading consumer to buy unnecessary products, while 34% strongly believed it true while minimum 16% consumers disagreed with it.
4.8 Advertisement viewed for more time by consumer results in buying the product
The respondents were asked if internet ads are view for more time by the consumer then will it influence him/her to go and buy the product. The responses to are shown in table 7 below:
Table 6
Responses Frequency %age
Agree 23 46%
Disagree 09 18%
Not sure 18 36%
Grand Total 50 100%
According to table 7, most of the respondents 23 agreed that if an advertisement is viewed for more time then it definitely leads them to purchase the product, while 9 respondents disagreed and 18 remained unsure.
Figure 9
left2432050
According to figure 9, 46% consumers agreed with the view that internet advertisements which are displayed for more time lead the consumer to buy the product, while lowest 18% respondents disagreed and 36% were not sure about it.
4.9 What consumers look for in internet advertisementsThe respondents were asked what they look for in internet advertisements displayed to them on various digital devices. Wide range of options were given to the respondents and their selection of options (as to what do they look for in online ads) are displayed in table 7:
Table 7
Option Frequency %age
Famous people appearing on the ads. 5 10%
Consumer Review 8 16%
Discount and sale 11 22%
Others 3 6%
Price Information 11 22%
Product Information 12 24%
According to table 7, most consumers (12 respondents) look for product information, 11 respondents looked for price info. 11 looked for discounts and sales, while the lower numbers 8, 5 and 3 look for consumer reviews, famous people appearing on the ads and others respectively.
left2349500Figure 10
Figure 10 depicts that highest number of consumers look for price and product information or discounts and sales. Minimum number of consumers look for famous people on the ads. While medium range of population looks for consumer review in an internet advertisement.
left2305050Figure 11
Figure 11 shows the percentage of consumers who look different things in an internet ads: 24% look for product info, 22% look for sales and discounts, 22% look for price info, 10% look for famous people in ads and 6% look for other things in internet advertisements.
4.10 Discussions and Findings
The data connect with the findings of previous investigates which are passed on in this domain. Internet is tool of mass communication for consumer to advertiser (Meeker) as most people spend most of their time on internet as view advertisements online. In this respect, the findings of this research are that the highest 15 respondents of sample population (50 consumers) are using internet more than five hours while 30% consumers use internet for 4 to 5 hours, same percentage use internet for 2 to 4 hours, 12% consumers spend 1 to 2 hours and the lowest 10% consumers spend an hour or less on internet (Figure 1). Among these, 66% respondents responded that they do not pay attention to internet ads while 34% agreed that they pay attention to the ads (Figure 2). The reason for most population for not paying attention to internet ads is due the reason that they find these advertisement as annoying and leading to buy unnecessary products as examined by Lafferty, Goldsmith and Mehta Suh K.
Additionally, if advertisement ads are informative and more interactive then the chances are that consumers will buy the product as consumer trusts in advertisement. Mixed responses came from the respondents in this regards. According to the data 56% respondents find internet ads as informative while 28% don’t agree and 16% are not sure about it (Figure 7). The findings also correlate with Lee M. that internet advertisement ought to be informative. Furthermore, 24% consumers look for product info, 22% look for sales and discounts, 22% look for price info, 10% look for famous people in ads and 6% look for other things in internet advertisements (Figure 11).
Additionally, this study confirms the findings of Hussherr and Dreze that found the advertisement shown for more time lead consumer to actually go and buy the product which is displayed by advertiser. According to the data, 46% consumers agreed with the view that internet advertisements which are displayed for more time lead the consumer to buy the product, while lowest 18% respondents disagreed and 36% were not sure about it (Figure 9).
The range of impacts on consumer behaviour to buy advertised product are assessed in this study. The impacts of online advertisement on consumer buying behaviour are high as 30% consumers are highly impacted by online ads concerning their buying and selling behaviour, while 34% consumers are moderately influenced and 36% are extremely less influenced (Figure
5). Furthermore, 54% of consumers agreed that they have bought products after seeing ads on the internet while 46% have not purchased the product after seeing internet ads (Figure 6).
CHAPTER FIVE
Conclusion and Suggestions
5.1 Introduction
Present chapter is dedicate to present summary and findings of this stud. This chapter would summarize the discussion of online advertisement impacts on consumer purchasing behaviour.
5.2 Summary
This study has found that internet advertisement has high impacts on consumers as high impact on consumers’ behaviour as 36% consumers responded that they are highly impacted. Internet has provided new arenas to all domains including advertisement. As he consumer is spending more time (2 to 6 hours) on internet and thus it provides communicational platform for advertiser to advertise producers’ product to the consumer. Advertiser seeks to comprehend consumers’ behaviour which is impacted by the online advertisement in order to persuade the consumer that he/she can rely on the information given by the advertiser. The consumers look for various information about the product. This study finds that, most consumers (12 respondents) look for product information, 11 respondents looked for price info.11 looked for discounts and sales, while the lower numbers 8, 5 and 3 look for consumer reviews, famous people appearing on the ads and others respectively (Table 8). The study also confirms that internet advertisement has high influence on the consumer buying behaviour. Some consumers find online advertisements annoying most numbers find it informative as it give information about the product, review and price etc. This study finds that internet advertisement has high influence on consumer behaviour. The study suggests, if advertiser displayed ads that attract the consumer to view and click it in order to see details (as most consumers according to the findings of this study are inclined to look for product info and price info). It would lead the consumer to buy the product. Thus, the advertiser would be able to gain its objectives by more sales and profit to the mother company whose product is advertised.
5.3 Conclusion
This study was conducted in order to find effectiveness of web-advertisement on consumers’ behavioural tendencies by utilizing the data acquired through questionnaires distributed to the students of NEWPORT UNIVERSITY main campus. Presents study found out that internet has pushed human history towards new horizons of digital age. The effectiveness of internet ads is determined by the findings of this study depicted by Table 1 maximum 30% of the total population use internet for more than 5 hours. Moreover, high percentage of sample population accepted that internet advertisement has high influence on their buying behaviour (Figure 5).
This study also endeavours to evaluate the factors which influence consumers’ behaviour while viewing the online ads presented in pop ups, banner ads, web pages, mobile applications and social media sites. Most of the respondents found out that internet ads are annoying as they lead them to buy unnecessary products. According to the findings, 66% respondents opted that they do not pay attention to internet ads (Figure 2). The reason for most population for not paying attention to internet ads is due the reason that they find these advertisement as annoying and leading to buy unwanted products.
As most consumer dislike viewing online ads because they lack information, appropriate methods of advertising, continuous communication with the consumer, and complete product info etc. According to the findings certain suggestion are given below to increase the effectiveness of internet advertisement on consumer buying behaviour so that promotions got successful and so profits for the mother company increase many folds by selling more products to more people.
5.4 Suggestions
Present study suggest that advertisers should take consumer oriented approach while promoting a product through internet means. The effectiveness is of online advertisement can be maximized by displaying informative ads that do not irritate the consumer because if consumer is annoyed by online ads, it would never lead to selling the product. So advertise must provide information of services and product. Furthermore, Advertisement Company or advertiser ought to achieve the trust of consumers so that they could consider every product displayed by the same advertiser.
5.5 Recommendations for additional plans
As present study examined the effectiveness of web ads on consumers behaviours which is responsible for leading them to obtain and consumer the services and products, the comparative study is necessitated by the fact that this domain of study insight into consumer- to-advertiser relationship in contemporary ways of marketing. This would, additionally, provide new ways of web advertisements which are more effective on consumer buying behaviour. Conclusively, as Maddox and Gong (2003) proposed “future research can investigate the effectiveness of web promoting crosswise over various nations and societies to improve the worldwide comprehension of web publicizing adequacy.”
REFERENCES
Alvin, and Ernst R. B (2002), Intermediary Substitutability and Market Demand by National Advertisers.
Berthon and Watson (1996), The World Wide Web as an advertising medium: Journal of Promotion Research.
BhatBevans and Sengupta (2002), Measuring customers web activity to evaluate and boost advertising effectiveness. Journal of Promotion.
Bloch, H Sherrell, D.L. and Ridgway, (1986), Customer search: An complete framework. Journal of User Research.
Calisir (2003) Web advertising vs other media: young consumers’ view. Journal of Internet Research.
Cho, C.H, (2003), Causes influencing clicking of banner ads on the WWW. Cyber Psychology ; Performance.
Danaher and Mullarkey, G.W., (2003), Causes affecting online promotion recall: A study of students. Journal of Promotion Research.
Dreze X and Hussherr, (2003), Internet advertising: Is anybody seeing? Journal of Marketing.
QUESTIONAIRE
1. On average, how many hours do you spend on the internet per day?
1hour
1hr to2 hrs2hrs to 4hrs
4hrs to 5hrs
Above 5hrs
2. Do you pay attention to online advertisement?
Yes
No
3. Do you like advertisement on mobile, computer, laptop or using other electronic device?
Yes
No
4. How did you find such advertisements?
Informative
Creates awareness
Irritating
Waste of time
5. How much influence do you feel advertisements have over your behavior regarding buying and consuming?
Large Influence
Medium
Extremely low
6. Have you made any purchases after seeing internet ads?
Yes
No
7. Advertising is beneficial to consumers because it provides important information about goods and services. ‘To what extent do you agree with this statement?
I Agree
I Disagree
Not sure
8. Do you agree that people become victim of advertising by purchasing unnecessary things?
I agree
I disagree
Not sure
9. If an online advertisement is viewed for more time by a consumer then there are chances that consumer would likely go and buy that product. Do you agree with this statement?
I agree
I disagree
Not sure
10. The advertising is beneficial to consumers because it provides important information about goods and services. Do you agree?
Yes, I agree.
No, I disagree
Not sure
11. What do you look out for in online advertisement, if it catches you attention?
Product information
Price information
Celebrities and famous people appearing on the advertisement
Discounts and sales
Consumer reviews
Other
