BBA (Hons) Project Internet Usersâ€™ Attitudes and Beliefs About

BBA (Hons) Project

Internet Users’ Attitudes and Beliefs

About Internet Advertising: A Case of Hong Kong

BY

Wong Fai Ching

06015344

Marketing Option

An Honours Degree Project Submitted to the

School of Business in Partial Fulfillment of the

Graduation Requirement for the Degree of

Bachelor Business Administration (Honours)

Hong Kong Baptist University Hong Kong

2009

Internet Users’ Attitudes and Beliefs Wong Fai Ching About Internet Advertising: A Case of Hong Kong 06015344

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ABSTRACT

The existence of Internet advertising in recent decades has aroused the interest

from public with its impact. The study attempts to investigate the predictive impact of

Hong Kong Internet users’ beliefs and attitudes towards Internet advertising. It aims

to find out Internet users’ attitudes towards Internet advertising. After that, it explores

the belief factors that can predict Internet users’ attitude towards Internet advertising.

It then examines if demographics factors, Internet usage factors and beliefs factors are

predictive in terms of Internet users’ attitude in Internet advertising.

Through the quantitative research process, the mean score of 34 variables were

generated in order to identify belief factors of Internet users over Internet advertising.

Respondents generally believed that Internet advertising is a good thing. However,

they did not like Internet advertising. Nine factors were drawn from the process and

accounted for 67.9 percent of the variance in Internet users’ belief about Internet

advertising.

To determine if Internet user’ beliefs about Internet advertising were still

effective in prediction after controlling other confounding variables, hierarchical

regression was used. The full model explained 46.2 percent of total variance in users’

attitude towards Internet advertising. The belief factors’ predictive power of attitude

towards Internet advertising remained stable.


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ACKNOWLEDGEMENT

I would like to first thank my supervisor, Dr. Betsy Y.Y. Lee for her guidance,

support and encouragement.

Then, I would like to thank my family for their love and care.

I would also like to thank my friends for their support.

Finally, I would like to give thanks to my God. Every time I felt weak and lost in

doing the project, He supported me by giving directions.


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CONTENT

Content Page Acknowledgement I

Abstract II

Table of Contents III

List of Tables and Figure IV

1. Introduction 1-6

1.1 Statement of the Problem 1

1.1.1 What is Internet advertising? 2

1.2 Literature Review 3

1.3 Objective of the Study 5

1.4 Statement of the hypotheses 6

2. Procedure and Methodology 7-11

2.1 Sampling Method 8

2.2 Survey Content 9

2.3 Data Analysis Method 10

3. Finding and Analysis 12-20

3.1 Sample Charateristics 12

3.2 Findings 14

4. Implications and Recommendations 21-26

5. Limitations and Future research directions 27-29

6. Concluding Remark 30

References A-1 – A-2

Appendices A-3 – A-21

Samples of Questionnaires A-3

SPSS Output A-13


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List of Tables Page Table 1 Demographics Profile of the Sample 13

Table 2. Beliefs About Internet Advertising A-7

Table 3. Attitudes Towards Internet Advertising A-9

Table 4. Factor Analysis of Beliefs About Internet Advertising A-9

Table 5. Factor Loading of Beliefs About Internet Advertising A-10

Table 6. Factor Analysis of Attitudes About Internet advertising A-11

Table 7. Regression of Belief Factors A-12

Table 8 Hierarchical Regression Predicting Attitudes towards Internet advertising

A-12

List of Figure

Figure 1 Scree plot for factor analysis of beliefs towards Internet advertising

A-13


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1. INTRODUCTION

1.1 STATEMENT OF THE PROBLEM

The Internet has been referred to as the “fifth medium,” alongside the television,

radio, newspapers, and magazines (Cutler, 1990, p. 25). It continues to grow as a

convenient communication medium by which individuals and businesses can share

information rapidly (Townsend, 2001) in an interactive, seemingly one-on-one

environment (Anderson, 2000). The growth of YouTube.com and social network

spaces, like Facebook.com, are pointing to a trend in the creation and use of virtual

social spaces that emphasizes tribes that are often heavily based on consumption

(Kozinets, 1999). In these virtual social spaces, products take on social meaning

(Solomon, 1983) and the Internet is undoubtedly allowing higher levels of social

interaction in imitation of social behavior.

The increasing adoption of virtual online social spaces reveals a trend of sharing

communities that seek increasingly real simulations of actual social environments.

Marketers are paying more effort to catch up with the trend that constitutes marketing

relevant behavior in these spaces and how commercial presence interacts with these

behaviors are paramount issues for the future of consumer behavior, as this is where

consumers will increasingly act out their lives.


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There were studies conducted on the demographic, psychographic, attitudinal and

experiential factors of Hong Kong Internet users (Sin and Tse, 2002), Internet users’

attitude towards interactive advertising (Yang 1994, 1997).

Nevertheless, there were not many studies done on the actual belief of the Internet

users perceives online advertising. There was study conducted in the contexts of the

United States. Schlosser, Shavitt and Kanfer (1999) had surveyed 400 US Internet

users’ attitudes towards Internet advertising. There was no majority opinion

concluded towards Internet advertising.

1.1.1 WHAT IS INTERNET ADVERTISING?

Internet advertising includes various forms of commercial content, from electronic

advertisements that are similar to traditional advertisements that are similar to

traditional advertisements (such as billboards and banner ads) to formats that are

different from traditional advertisements, like corporate websites. (Ducoffe, 1996).

Thus, in this research, Internet advertising would be described broadly as any

form of commercial content available on the Internet that is designed by any business

to inform consumers about a product or service. Internet advertising can be delivered

in any form (e.g. an email spam or an interactive game), containing information at


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different levels of profoundness (e.g. a slogan or a website) through any channel (e.g.

a print advertisement or a video clip) on the Internet.

1.2 LITERATURE REVIEW

It is important to notice that consumers’ attitudes towards advertising and the

potential impact of it towards consumer behavior upon decision making shall not be

underestimated. It is generally believed that those who hold positive attitudes on the

advertising would be more likely to be persuaded for a behavioral response. However,

studies have also discovered that consumers (of the United States and the West

Germany) attitudes towards advertising could be complex and might encompass a

variety of social and economics related factors. These factors include consumer

manipulation and the role of advertising in an economy.(Anderson, EngleDow,

Becker 1978)

With the emergence of the Internet and Internet advertising (Internet advertising

encompasses a number of advertising formats, including pop-up ads, pop-under ads,

email, forum and newsgroup ads, banner ads, interstitials, superstitials, podcast,

webisodes, etc.) has brought marketers and researchers a new horizon. They started to

explore the factors affecting the success of the Internet advertising. The Internet


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serves the main function of providing information for consumers. Yet, Schlosser,

Shavitt and Kanfer (1999) suggested that affective (e.g. shock and entertainment) and

cognitive (e.g. informational elements) factors of an Internet advertising shall not be

sufficient in understanding and explaining the complexity of Internet users’ attitudes

towards online advertising. Schlosser and Kanfer (1999) further argued that the

underlying factors of consumer’s attitude towards online advertising were different

from those towards the traditional form of advertising medium.

From the study conducted by Mehta and Sivadas (1995) on Internet users’

attitudes towards advertising on newsgroups and emails, consumers tend to have

negative attitudes towards advertising on newsgroups and emails. After that, Ducoffe

(1996) conducted a study on consumers’ attitude towards online advertising in New

York and found that people tend to perceive Internet advertising to be entertaining and

informative.

The result gained in the above studies may be due to the novelty of the Internet

and the relatively self-disciplined industry practice at that time.

Studies on Internet users’ beliefs about and attitudes towards Internet advertising

often follow Pollay and Mittal’s (1993) research on exploring the multi-dimensional

nature of beliefs and their relationship with consumers’ attitudes as it owns the


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advantage in investigating the complexity of users’ beliefs and attitudes towards

Internet advertising.

This study intends to extend from Scholsser and Kanfer’s (1999) study on the

underlying factor structure of consumers’ attitudes towards Internet advertising.

1.3 OBJECTIVE OF THE STUDY

The study intends to identify the beliefs and belief factors of Internet users in

Hong Kong about Internet advertising. In addition, the study tries to predict Internet

users’ attitudes towards Internet advertising with the use of the belief factors.

Globalization may be a trend facilitated by the growth of the penetration of the

Internet and its global nature. While it is drawing different parts of the world closer, it

is clear that the Internet is, on the other hand, providing a huge room of individuality.

It is hoped that the study shall gain a better understanding of Hong Kong Internet

users and help in reviewing what elements constitute the attitude towards online

advertising in the mind of consumers and how that might triggers behavioral response.

Furthermore, the study on Hong Kong Internet users’ attitude towards Internet

advertising can be used in comparing with attitudes held by other region in Asia, as

well as the rest of the world.


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1.4 STATEMENT OF HYPOTHESES

The following research questions are proposed to investigate Internet users’

beliefs about Internet advertising and to identify belief factors predicting their

attitudes.

Research Questions:

� What are the Internet users’ attitudes towards Internet advertising?

� What are the beliefs factors underlying Internet users’ attitudes towards

Internet advertising?

� Can the belief factors (and/or other demographic factors, Internet usage

factors) predict Internet users’ attitudes towards Internet advertising?

By examining these research questions, it is suggested that future business focus

of Internet advertising can be shaped in a more accurate way in terms of compassing

consumers’ needs. As the Internet has became an important medium of people to

obtain information, whether the consumer behavior has a casual relationship with the

attitudes and beliefs towards Internet advertising held by the Internet users allows

company to have a better campaign planning on the effort and capitol put in the area

of online advertising.


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2. PROCEDURES / METHODOLOGY

The consumer behavior literature has found that lifestyle is an important variable

that influences consumers’ use of the Internet for a variety of activities (Schiffman et

al., 2003). As the Internet population continued to grow, the profiles of Internet users

were found to encompass more demographic and lifestyle diversities (Schiffman et al.,

2003). Recent Internet demographic statistics have clearly shown an exponential

diffusion of the Internet, particularly in developed countries.

According to the Internet World Stats, Hong Kong's Internet penetration rate ranks

No.1 and No.9 in Asia and the world respectively. According to Office of the

Telecommunications Authority (OFTA), Hong Kong's household broadband

penetration rate (73.7% of Hong Kong households in April 2007) is among the highest

in the world. (HKTDC) The popularity of Internet and related applications has

influenced marketing activities in Hong Kong.

According to the Internet Use in Hong Kong: the 2007 Annual Survey Report

(April 2008) Part VI conducted by the City University of Hong Kong, the term

Internet Users, is defined in two ways in the current study. The first is the version by

the World Internet Project (WIP), which was worded as “are you using the Internet?”,


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and the second is the version by the China Internet Network Information Center

(CNNIC), which was worded as “use of the Internet at least one hour on average per

week”.

With the high penetration rate across age groups in Hong Kong, the CNNIC

version shall be adopted. By the CNNIC definition, there are 4.35 million Internet

users in Hong Kong, who account for 66.1% of the corresponding population (i.e.,

6.58 mil regular residents) between age of 6 and 84. With sampling error considered,

the actual number of Internet users may vary from 4.22 million to 4.48 million.

The questionnaire was borrowed from Schlosser, Shavit, and Kanfer’s Survey

over Internet user’ attitudes towards Internet advertising performed in the U.S. in

1999. Due to cultural difference, some of variables in the survey were not used in

present study in order to make the study more suitable for the situation in Hong Kong.

2.1 SAMPLING METHOD

The survey was conducted in February to March of 2009.

The sample was recruited using a convenience sample approach with the sample

size of 200. In spite of the convenience sampling method, the gender, age and

occupation distribution of the sample shall strive to be comparable to the profile of the


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Internet population in Hong Kong. For example, according to the latest figure in the

Internet Use Annual Report of Hong Kong, the sex distribution of the Internet users in

Hong Kong is 52.5% male and 47.5% female.

2.2 SURVEY CONTENT

The survey consisted of multi-item scales to measure the Internet users’ beliefs

and attitudes towards Internet advertising. Respondents were asked to answer for

more than thirty-two, five-point Likert questions to signify their extent of

agreeableness with the statements about Internet advertising. Number 1 represents

“strongly disagree”, while the number 5 represents “strongly agree”. Attitudes

towards Internet advertising were measured through two Likert scaled statements. The

two statements were “Overall, I consider Internet advertising as a good thing” and

“Overall, I like Internet advertising.” Responses were given on the same five-point

scales. The above two statements were intended to explore how respondents perceive

Internet advertising without addressing the belief dimensions with them.

In addition, respondents were asked to provide demographic information such as

gender, age, education level, occupation and the duration they have been using the

Internet. Furthermore, it is hoped that whether belief factors such as Hedonism,


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Materialism and Good for Economy could be served as predictors of Internet users’

attitudes towards Internet advertising.

The questionnaire for this study had both English and Chinese versions. (Refer to

Appendix 1) The English version was developed first, and then translated to Chinese

version. In order to maintain the agreement between the two versions, Chinese version

was translated back into English; necessary adjustment, if any, was made until the

differences between the two versions due to translation process were minimized. A

pre-testing with sample size of twenty was conducted to access the understandability

of the questionnaire. The research was done through distribution of Chinese version

of questionnaire only.

2.3 DATA ANALYSIS METHOD

Data collected were analyzed through the application of SPSS 11.5 and

Microsoft Excel. Microsoft Excel generated the mean and standard deviation of

demographic characteristics of the sample, which includes years of using the Internet

and interest in online shopping.

After that, SPSS was used to generate the means and standard deviation of the

beliefs about Internet advertising. Factor analysis was then conducted in order to


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identify the factors of Internet users’ beliefs about Internet advertising. After that,

regression analyses were used to determine the relationship between Internet users’

beliefs about Internet advertising and their attitudes towards Internet advertising.

Hierarchical regression was then used to estimate the strength of prediction of users’

beliefs about Internet advertising after controlling other confounding variables (i.e.

demographics and online usage.)


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3. FINDINGS AND ANALYSIS

3.1 SAMPLE CHARACTERISICS

The total numbers of valid respondents were 200. In the sample, 49% (n=98) was

male, while 51% was female. Their age ranged from early tenth (10-14) years old to

over 50 years old. Those whose ages were 15 to 19 years old account for 20.5%

(n=41), while those whose age were 20 to 24 years old account for 39% (n=78) of the

sample. In conclusion, younger respondents (age from 15 to 24 years old) accounted

for 59.5% of the sample. Both the sex and age distribution were reflective of the

current Internet user profile in Hong Kong according to the City University of Hong

Kong’s annual survey of Internet use reports, where the both sexes accounted for half

of the Internet population and the penetration rate of the youth group has almost the

saturation point.

Over 59% of the sample owns a university degree and/or post graduate degree. In

terms of their occupation, student population accounted for 57% (n=114) of the

sample. Most of the respondents (95%, n=191) has had more than 4 years of

experience of using the Internet. It was believed that their high exposure to the

Internet would conduce to a higher possibility of online shopping. However, data


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shows that 61% (n=122) of the sample reported their likelihood to shop online is

below 39%. Besides, only 4.5% (n=9) of the respondents reported their interest of

shopping online is between 80 to 100%. (Refer to Table 1 for complete demographic

profile of the sample.)

TABLE 1. Demographics Profile of the Sample

Counts %

Gender Male 98 49.0%

Female 102 51.0%

Age 10-14 years old 1 0.5%

15-19 years old 41 20.5%

20-24 years old 78 39.0%

25-29 years old 25 12.5%

30-34 years old 5 2.5%

35-39 years old 8 4.0%

40-44 years old 13 6.5%

45-49 years old 7 3.5%

50 years old and above 22 11.0%

Education Levels Post graduate Level 16 8.0%

University Level 103 51.5%

High Diploma Level 24 12.0%

Senior High/ Vocational School Level 51 25.5%

Junior High /Elementary School Level 1 0.5%

Others 5 2.5%

Occupation Students 114 57.0%

Banking Industry 2 1.0%

Manufacturing Industry 2 1.0%

I.T. Industry 2 1.0%

Teachers 3 1.5%

Services Industry 10 5.0%

Public Services 24 12.0%


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Mass Media Industry 2 1.0%

Others 39 19.5%

Unemployed 2 1.0%

Years of Using Internet Below 6 months 1 0.5%

6 months to 1 years 1 0.5%

1-2 years 1 0.5%

2-3 years 3 1.5%

3-4 years 3 1.5%

4 years and above 191 95.5%

Online Shopping Interest 100-80 % 9 4.5%

79-60 % 41 20.5%

59-40 % 27 13.5%

Below 39 % 122 61.0%

3.2 FINDINGS

Respondents marked their levels of agreement with five-point Likert scales to

indicate their belief about Internet advertising. Results suggest that respondents

viewed Internet advertising as informative. They agreed that Internet advertising is a

valuable source of information about latest fashion (Mean=3.965, SD= 0.83) and is a

valuable source of information about latest fashion (Mean=3.715, SD=0.92). Most of

them also agreed that Internet advertising helps me keep up-to-date about product

s/services available in the marketplaces (Mean=3.63, SD= 0.92), promotes

competition and benefits the consumer (Mean=3.67, SD= 0.8).

Respondents acknowledged that Internet advertising’s value in business world.


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They agreed that Internet advertising helps the nation’s economy (Mean=3.67,

SD=0.8) and that it plays an essential role in modern economy (Mean= 3.4, SD=0.92).

They also believed that Internet advertising helps to create brand image (Mean=3.27,

SD=0.83) but generally it does not provide a true picture of the product being

advertised (Mean=3.14, SD=0.87).

On the other hand, respondents recognized the negative side of Internet

advertising. They agreed that products on Internet advertising have negative effects on

our society (Mean=3.375, SD=0.94) and promotes a materialistic society

(Mean=3.245, SD=0.98). They thought that people buy a lot of things that they do not

really need because of Internet advertising (Mean=3.35, SD=0.97). Most of

respondents indicated that government should regulate Internet advertising

(Mean=3.74, SD=1.01). (Refer to Table 2 for a complete list of beliefs about Internet

advertising.)

The first research question attempted to examine Internet users’ general attitude

towards Internet advertising. Two statements (Overall, I consider Internet advertising

as a good thing; Overall, I like Internet advertising.) were used to measure the attitude

of respondents held towards Internet advertising. In general, respondents had

favorable attitudes towards Internet advertising. Respondents viewed Internet


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advertising as a good thing (Mean=3.165, SD=0.79) but inclined to dislike Internet

advertising (Mean= 2.95, SD=0.85). (Refer to Table 3 for the attitudes of sample held

towards Internet advertising.)

In order to identify factors of Internet users’ beliefs about Internet

advertising, factor analysis procedure was conducted. This procedure allows us to

examine the nature of the interrelationships among belief variables and to reduce them

to a reasonable number of predictors. These beliefs statements were then factored by

principal component analysis with varimax rotation. This analysis yielded nine

orthogonal factors with eigenvalues greater than 1.0. (Refer to Table 4.) A scree test

was also employed to supplement the selection of factors. From the scree plot, a

distinct break occurs from the ninth factor to the tenth factor. This signifies that nine

factors shall be obtained as experimental evidence indicates that the point where the

scree begins denotes the true number of factors. (See Figure 1)

Both procedures generated the same number of factors to be retained. From the

cumulative percentage of variance accounted for, we see that the first nine factors

account for 67.998% of variance within the data.

The principal components methods, using varimax rotation, reduced the 34

explanatory variables to nine factors was composed of variables loaded 0.40 or above


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on that factor. In two instances, if the variable loaded 0.40 or above on two (or more)

factors, the variable would be assigned to the factor where it had the highest loading.

The ten factors were: Good for Personal Economy and Consumer Benefits (F1),

Value Distortion (F2), Good for Economy (F3), Materialism (F4), Negative Attitudes

(F5), Consumer Manipulation (F6), Webeconomics (F7), Hedonic/Pleasure (F8) and

Product Information (F9). (Refer to Table 5)

Factor analysis was also performed on the respondents’ general attitude towards

Internet advertising. One factor was extracted which accounts for 84.894% of

variance. (See Table 6)

Predictors of Internet Users’ Attitudes towards Internet Advertising

The second research question attempted to examine the belief factors that can be

used to predict the attitudes of Internet users towards Internet advertising. Regression

analysis was used to determine the relationships between Internet users’ beliefs about

Internet advertising and their attitudes towards Internet advertising. The previous

section was devoted to examine respondents’ specific perception towards Internet

advertising, which the results were focused within each variable. In this section, the

aim is to look at the relation between different variables.


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Of the nine belief factors, six of them contributed significantly to the prediction

of attitudes towards Internet advertising. These six predictor factors altogether

explained 73.8 percent of the variance in users’ attitude towards Internet advertising.

(Refer to Table 7)

Factors having a higher belief scores predicted a higher positive attitudes

towards Internet advertising. Five out of nine factors have positive signs and

sufficient significant scores. These factors include: Good for Personal Economy and

Consumer Benefits, Good for Economy, Webeconomics, Hedonic/Pleasure and

Product Information. In other words, respondents who had positive beliefs about the

value of Internet advertising to personal economy and consumer benefits also have a

positive attitude to advertising. Similarly, if the respondents have a positive belief that

Internet advertising is good for economy, webeconomics, lead to hedonic/pleasure

experience incline to have positive attitudes towards Internet advertising.

On the other hand, respondents who are less likely to believe that Internet

advertising leads to materialism, consumer manipulation and value distortion would

hold a more positive attitude towards Internet advertising as well.


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Impact of prediction of belief factors for attitude towards Internet advertising

To determine if Internet users’ attitude about Internet advertising were linked

with the confounding variables, hierarchical regression analysis was performed. A

total of fourteen variables were selected and grouped into three components. They are

Demographics components (including gender, age, education level and occupations),

Internet Usage components (including online experience and online shopping interest)

and the belief factor components held towards Internet advertising.

Before conducting the hierarchical regression, correlation analyses were

performed to avoid multicollinearity among the components. Results suggested that

correlation within different components were low. Thus, variables within the

components were kept in the hierarchical regression.

Demographic components as a group contributed 4.2% only of the variance

in respondents’ attitudes towards Internet advertising. Thus, demographic variables

include gender, age, education and occupation played a rather insignificant role in the

model.

Internet usage components as a group accounted for 14.8% of the variance in

respondents’ attitude towards Internet advertising. It is a better predictor than

demographic components. However, it became less significant when the belief factors


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were included later in the study. (Refer to Table 8) The R Square for the beliefs about

Internet advertising is 0.562; this means that belief factors explained the greatest

amount (i.e. 56.2%) of the variance in the three components. Among the eight belief

factors, Good for Personal Economy and Consumer Benefits, Good for Economy and

Hedonic/Pleasure showed a higher value in the standardized beta, denoting that they

are positively contributing to the perceived value of Internet advertising in general.

After controlling the identified variables, the predictive impact of belief

factors about Internet advertising in users’ attitude towards Internet advertising is

stable. It suggested that there shall be a theoretical link between users’ beliefs and

attitudes toward Internet advertising.


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4. IMPLICATIONS & RECOMMENDATIONS

Research done by Schlosser, Shavitt and Kanfer (1999) discovered that the

attitudes towards Internet advertising were similar to that of the traditional media.

This study attempts to explore further for the linkage between the beliefs and attitudes

towards Internet advertising in Hong Kong.

This study supported that there is a predictive impact of belief factors about

Internet advertising towards users’ attitude on Internet advertising and the belief

factors are reliable tool to deduce especially when compared with demographics and

Internet usage. Results from hierarchical regression also suggested that belief factors

are better predictors than demographics and Internet usage factors in users’ attitude

towards Internet advertising.

Since the Internet advertising began to mushroom in the early 1990’s, the format

of Internet advertising has evolved into banner ads, pop up ads, spam emails,

superstitials and site sponsorship. Advertising supported website has become a major

business in electronic commercial field nowadays. It is important to understand how

Internet users perceive Internet advertising and what factors would affect their

attitudes towards Internet advertising. Moreover, knowing what kind of content shall

be put in the advertisement or in what way of advertisements shall be used would be


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helpful in enhancing marketing campaign plan. Resources could be more accurately

allocated to the media or channel that allows better reach to the audiences.

From the result, most Internet users have a perception of intrusion towards

Internet advertising. The respondents generally saw Internet advertising as a good

thing, yet, they did not like Internet advertising. This is probably due to their beliefs

towards general advertising on traditional media like television, radio and magazines.

Such kind of mixed feeling may be arisen from the content (including truthfulness and

funniness), prior knowledge about the advertising. Although Internet advertising was

considered relatively new to general advertising in nature, respondents might judge

Internet advertising with the same or similar set of criteria.

Respondents agreed that Internet advertising has its economic value and it is

one of the most update information hubs on products and services they need to obtain.

In fact, respondents believe that Internet advertising has a positive impact on personal

economy as well as nation’s economy.

Furthermore, they inclined not to believe Internet advertising would distort the

value of the youth or would promote undesirable value in the society, or to manipulate

consumers. Most of them do not hold a negative stand towards Internet advertising.

This may suggest the reason why respondents dislike Internet advertising was not due


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to the possible downside, including consumer manipulation, of Internet advertising.

The enjoyableness of Internet advertising might be a reason for disliking Internet

advertising.

Practitioners shall reconsider their way of introducing Internet advertising to

users. Current commercials online may have provided rich information to consumers,

yet, there is room for improvement for the feature to engage with the consumers such

as the interactivity. In addition to humor or scary feature that are commonly used in

general advertising, interactive product demonstration, a rather unique feature for

online commercials, may be included. Instead of showing a straight forward way of

impersonal selling, Internet users are welcome to see a more enjoyable advertising

content. In fact, consumers create the talk of town themselves and Internet is the

medium they are using to spread the news and to other medium as well. Consumers

are making use of online social networking sites such as Youtube, Facebook and

various kinds of discussion forums and blogs to re-create advertisements they found

in daily life for the sake of enjoyment. The environment in Internet advertising

appeared to be different from that in general advertising. Marketers shall realize the

“pull” nature, rather than the “push” nature in general advertising, of Internet

advertising is what makes the consumers felt less irritating and sees Internet


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advertising as a good thing. Practitioners are advised to pay more attention to online

activities which the talk of the town and the most trendy people, place and things can

all be found online. Online campaign may shift focus to creating sites that consumers

enjoy to visit is vital in gauging consumer’s attitude towards Internet advertising.

In this study, Internet usage was a mediocre component in predicting the attitude

towards Internet advertising of Internet users. The years of experience of using

Internet does reflect there is a positive effect in users’ attitudes towards Internet

advertising in Hong Kong. Yet, the interest in shopping online does not reflect the

same case. The reason behind might be Hong Kong is a rather small place where

shopping can be done everywhere. Electronic commerce is likely to be confined in

handling bills and payments for public organizations, banks and stocks. Online

shopping may not be attractive enough for users (of different age groups) in Hong

Kong at this stage of Internet penetration.

It appears that there is a significant consumer potential in facilitating sales in

Internet advertising. With the consistency of the belief-attitude relationship in Internet

advertising, future integrated marketing communication (IMC) planning shall take

Internet advertising as a medium to reach target audience. Since the belief of Internet

advertising is highly related to the attitude held by Internet users, it is recommended


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that more activities or advertising can be done through the Internet if correct. The

weakest aspects of Internet advertising’s utility are its ability to deliver entertainment

and to encourage consumer to purchase. Thus, rather than using the Internet ads as a

way of selling, a rich content can better suits Internet users’ belief of Internet

advertising. Moreover, Internet advertising is a hub for Internet users to obtain

information in this study. With this tendency in obtaining information, practitioners

shall make use of Internet advertising and turn it into a contributor in purchase

decision of consumers. Rather than attempting to launch selling online in Hong Kong,

practitioner shall release product information (or marketing tactics such as sales or

coupon offerings, if any) and always provide store locators. This would better predict

and suit their attitude towards Internet advertising and/or even trigger behavioral

response offline.

The findings discovered that respondents tend not to believe Internet advertising

provided the true picture of products being advertised. They agree that government

shall regulate Internet advertising. Practitioners might need to review their process in

making the advertisements and stand firm for the code of conducts in order to correct

the negative views held by most consumers.

The findings suggested that Internet users welcome the novelty brought by


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Internet advertising. Without doubt, Internet is becoming more important in spreading

information. Technological advancement such as Wi-Fi and online cellular phone

would lead to an increasing use of Internet. Practitioners shall grasp this advancement

together with a better understanding of user’s belief and attitude in advertising in

order to launch successful online advertising campaign.

Also, with the development of broadband technology, allowing the web to stream

video footage similar to that on television and the adoption of television based web

technologies, such as web TV and Internet access via arcade games or television

connected modems and cables, the differences between these two advertising

mediums are very likely to converge. While we now consider these two mediums to

be very different, we may consider them to very similar in a few years.


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5. LIMITATIONS AND FUTURE RESEARCH DIRECTIONS

The sampling method was not purely random because high traffic places like

schools and malls were chosen. This may affect the generalisability of results

(Prendergast, Ho and Phau 2002). In addition, the convenience sampling method may

also create bias. For example, the educational background hoes not well fit with the

annual survey of Internet use in Hong Kong where people with high school

educational background is the dominant Internet user in Hong Kong. Although every

attempt was made to sample respondents with different backgrounds for taking part in

the survey, the non-random sample still lacked the representativeness of a

cross-sectional population. In addition, though the sample size could meet the

statistical requirement, it did not imply that the sample size was large enough to

represent the population. Future research may consider using a more general and

representative population of Internet users (i.e. raising the sample size). Furthermore,

the respondents were recruited from one country (Hong Kong) in Asia. The results

cannot therefore be generalized to Internet users in other countries. Nevertheless, the

research findings shall be useful for advertisers for understanding Internet users in the

Asia, especially The Greater China Region, where people use common language and

shares similar value and cultural dimensions.


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28

Moreover, there may be other unfound factors existing in the mediation, for

example, individual characteristics such as risk-taking and Internet usage frequency

and duration, which were not investigated in this study.

In addition, there were rounding off errors. The five-point scales would give rise

to central tendency problem which affect the accuracy and representation of results.

Furthermore, the research addressed to a rather macro and general level issue

regarding Internet advertising. In-depth issue such as the attitudes held by Internet

users towards a specific kind of Internet advertising format was not being investigated.

The characteristics of a certain Internet advertising format such as interactivity and

customization shall be important factors to be considered. Future study may attempt

to explore the relationship between the formats, characteristics of Internet advertising

and the beliefs and attitudes held by Internet users.

This research tested the dimensions and beliefs held towards Internet advertising

by Hong Kong Internet users. Further research may explore additional dimensions and

beliefs appropriate to web advertising. It may be discovered that some dimensions and

beliefs are universal to all forms of advertising, however, differing in their strength

and significance, while other dimensions and beliefs may be exclusive to a single

advertising medium.


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29

The study of new forms of online social networking sites, advertisements on these

sites and their impact on advertising could be researched in the future. Given the wide

scope of study available and the rapid changes in e-commerce, further and more

frequent research is needed to identify the other factors that could affect beliefs and

attitude towards Internet advertising.


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6. CONCLUDING REMARKS

While some have argued that today's world is becoming one "global village"

with common needs and desires because of the application of Internet, others suggest

that it is premature to assume that ethnic and cultural differences have eroded to the

point that they are no longer a significant consideration in advertising. People can

develop different attitudes towards in a certain type of advertising medium, on the

basis of different beliefs. The results are consistent with previous speculation that the

belief factors have a significant relationship with attitudes towards Internet

advertising of Hong Kong Internet users.

It is vital to have a strong understanding in order to improve communication in

advertising activities by getting the right people to use the right message. Internet

advertising will continue to be the main choice among tools in the Integrated

Marketing Communication (IMC) used by corporations to outdo their competitors.

Thus, knowing more about their customers’ beliefs and attitudes towards advertising

will surely put them ahead of the game.

The Internet demographics are constantly changing. The use of Internet could be

further expanded in different aspects in our daily life. More survey would be needed

to assess the attitudes and the structure in this changing Internet population.


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References Periodical Articles � Anderson, D. (2000). Creating and nurturing a premiere e-business. Journal of

Interactive Marketing, 14(3), 67-73.

� Anderson, R.D., Engledow, J. L., & Becker, H. (1978). How Consumer Reports Subscribers See Advertising. Journal of Advertising Research, 18(6), 29-34.

� Anderson, R.D., Engledow, J.L. & Becker, H. (1978). Advertising attitudes in West Germany and the U.S: An analysis over age and time. Journal of

International Business Studies, 9, 27- 38.

� Cutler, B. (1990). The fifth medium. American Demographics, 6(1), 24-61. � Ducoffe, R. H. (1996). Advertising value and advertising on the Web. Journal of

Advertising Research, 36(5), 21-35. � Kozinets, (1999). The Field Behind the Screen: Using Netnography for

Marketing Research in Online Communities. Journal of Marketing Research, 39(1), 61-72.

� Mehta, R., Sivadas, E. (1995). Comparing response rates and response content in

mail versus electronic mail surveys. Journal of the Market Research Society,

37(4) , 429-439. � Pollay & Mittal (1993). Here's the Beef: Factors, Determinants, and Segments in

Consumer Criticism of Advertising. Journal of Marketing, 57(July), 99-114 � Schlosser, A., Shavitt, S. & Kanfer, A. (1999). Survey of Internet Users'

Attitudes Toward Advertising, Journal of Interactive Marketing, 13(3), 34-53. � Scholsser, A. E. & Kanfer, A. (1999). Current Advertising on the Internet: The

Benefits and Usage of Mixed-Media Advertising Strategies. Advertising and the

World WideWeb

� Sin, L. Y. M. & Tse, A. C. B. (2002). Profiling Internet Shoppers in Hong Kong:


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Demographic, Psychographic, Attitudinal and Experiential Factors, The Journal

of International Consumer Marketing, 15(1), 7-29. � Solomon, M. R., (1983). The Role of Products as Social Stimuli: A Symbolic

Interactionism Perspective, Journal of Consumer Research, 10(3), 319-329. � Townsend, A.M. (2001). Network cities and the global structure of the Internet.

The American Behavioral Scientist, 44(10), 1697. � Yang,C.C.(1994). Screen-based interactive advertisements and their

effectiveness: An exploratory study of cross-national computer users. Unpublished doctoral dissertation, the Ohio State University, Columbus, U.S.

Electronic Resources

� Hong Kong Trade Development Council (2008). Hong Kong Internet Industry

Profile. Retrieved December 30, 2008, from http://hongkong.hktdc.com/content.aspx?data=hk_content_en&SRC=HK_MaPrFaSh&contentid=173578

� Web Mining Lab, Dept of Media & Communication, City University of Hong Kong (2008). Internet Use in Hong Kong: the 2007 Annual Survey Report. Retrieved December 30, 2008, from http://newmedia.cityu.edu.hk/hkip


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APPENDICES

Appendix 1 Samples of Questionnaires

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English Version

Hello! We are a group of students of Hong Kong Baptist University. We are now

conducting a research over online advertising. Please complete the following

questionnaire. All information collected would be used for research purpose only.

Please circle your level of agreement with the following statements. 1 represents “strongly disagree” , while 5 represents “strongly agree.” 1. Internet advertising is essential. ��

2. Internet advertising helps to raise our standard of living.

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3. Internet advertising results in better products for the public.

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4. Internet advertising promotes undesirable values in our society.

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5. Most Internet advertising distorts the values of our youth.

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6. Some products in Internet advertising have negative effects on our society.

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7. In general, Internet advertising helps our nation’s economy.

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8. In general, Internet advertising promotes competition, which benefits the consumer.

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9. Internet advertising is a valuable source of information about latest fashion.

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10. Internet advertising is a valuable source of information about how to establish personal taste.

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11. Internet advertising provides accurate information about products/services.

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12. Internet advertising is a valuable source of information about local sales.

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13. Internet advertising helps me keep up-to-date about product s/services available in the marketplaces.

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14. Because of Internet advertising, people buy a lot of things that they do not really need.

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15. Most Internet advertising insults the intelligence of the average consumer.

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16. Internet advertising persuades people to buy things they should not buy.

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17. Internet advertising promotes a materialistic society. ��

18. Internet advertising encourages people to buy something to impress others.

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19. Internet advertising makes people live in a world of fantasy.

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20. Internet advertising provides information on what is cool.

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21. Internet advertising is interesting and attractive. ��

22. Sometimes Internet advertisements are even more enjoyable than other media contents.

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23. Sometimes, I like to think about what I see on Internet advertising.

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24. Internet advertising creates brand image. ��

25. It will be boring to surf on the Internet without Internet advertising.

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26. In general, Internet advertising does not provide a true picture of the product advertised.

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27. Internet advertising is an impersonal way of selling. ��

28. Most Internet advertising is misleading. ��

29. Internet advertising plays an essential role in modern economy.

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30. Getting online will become too expensive if there is no Internet advertising.

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31. Website operators will charge their users if there is no Internet advertising.

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32. Government should regulate Internet advertising. ��

33. Overall, I consider Internet advertising as a good thing.

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34. Overall, I like Internet advertising. ��

Demographics Please circle as indication. Gender: Male Female Age: Below 9 10 - 14 15 - 19 20 - 24 25 - 29 30 – 34 35 - 39 40 - 44 45 - 49 50 and above


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Education Level: Post graduate level University Level High Diploma level

Senior High/ Vocational School Level Junior High /Elementary School Level Others

Occupation:

Students Banking Industry

Manufacturing I.T. Industry Teachers

Service Public Service Mass Media Industry Others Unemployed

Years of Using Internet: Below 6 months 6 months to 1 year 1-2 years 2-3 years 3-4 years 4 years and above Online Shopping Interest:

100 - 80 % 79 - 60 % 59 - 40 % Below 39 % -----------------------------------------Thank you!-----------------------------------------------


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TABLE 2. Beliefs About Internet Advertising

� � � � � � � � � � � � � ! � � " � � �# ! � $ � � $ �

% � & � � ! � � �

1. Internet advertising is essential. �U U � �� U ��

2. Internet advertising helps to raise our standard of living. �U U � �� O �� U � G B�

3. Internet advertising results in better products for the public. �U U � �� O G � U � G ��

4. Internet advertising promotes undesirable values in our society. �U U � �� O �� U � G 7 �

5. Most Internet advertising distorts the values of our youth. �U U � �� O �� U ��

6. Some products in Internet advertising have negative effects on our society.

�U U � �� G � U � O ��

7. In general, Internet advertising helps our nation’s economy. �U U � �� U � G O �

8. In general, Internet advertising promotes competition, which benefits the consumer.

�U U � �� 7 B� U � G �

9. Internet advertising is a valuable source of information about latest fashion.

�U U � �� O B� U � G ��

10. Internet advertising is a valuable source of information about how to establish personal taste.

�U U � �� U � O ��

11. Internet advertising provides accurate information about products/services.

�U U � �� B�� U � O ��

12. Internet advertising is a valuable source of information about local sales.

�U U � �� 7 � U � O �

13. Internet advertising helps me keep up-to-date about product s/services available in the marketplaces.

�U U � �� 7 �� U � O ��

14. Because of Internet advertising, people buy a lot of things that they do not really need.

�U U � �� U � O B�

15. Most Internet advertising insults the intelligence of the average consumer.

�U U � �� 7 � U � BO �

16. Internet advertising persuades people to buy things they should not buy. �U U � �� U � O 7 �

17. Internet advertising promotes a materialistic society. �U U � �� U � O G �

18. Internet advertising encourages people to buy something to impress others.

�U U � �� U � O ��

19. Internet advertising makes people live in a world of fantasy. �U U � �� O �� U � O ��

20. Internet advertising provides information on what is cool. �U U � �� G � U � G ��

21. Internet advertising is interesting and attractive. �U U � �� B� U � G B�

22. Sometimes Internet advertisements are even more enjoyable than other media contents.

�U U � �� U �� U � O 7 �


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23. Sometimes, I like to think about what I see on Internet advertising. �U U � �� G 7 � U � O ��

24. Internet advertising creates brand image. �U U � �� B� U � G ��

25. It will be boring to surf on the Internet without Internet advertising. �U U � �� U � O ��

26. In general, Internet advertising does not provide a true picture of the product advertised.

�U U � �� U � G B�

27. Internet advertising is an impersonal way of selling. �U U � �� U � G ��

28. Most Internet advertising is misleading. �U U � �� U �� U � G ��

29. Internet advertising plays an essential role in modern economy. �U U � �� U � O ��

30. Getting online will become too expensive if there is no Internet advertising.

�U U � �� U � O B�

31. Website operators will charge their users if there is no Internet advertising.

�U U � �� U ��

32. Government should regulate Internet advertising. �U U � �� B�� U ��

Note: 1 denotes “Strongly Disagree”, while 5 denotes “Strongly Agree”

TABLE 3. Attitudes Toward Internet Advertising

Variables � � � ! � � " � � �# ! � $ � � $ �

% � & � � ! � � �

33. Overall, I consider Internet advertising as a good thing. �U U � �� B� U � BO �

34. Overall, I like Internet advertising. �U U � �� O �� U � G ��

Note: 1 denotes “Strongly Disagree”, while 5 denotes “Strongly Agree”

TABLE 4. Factor Analysis of Beliefs About Internet Advertising ��

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TABLE 5. Component Matrix of Beliefs About Internet Advertising

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Factor Loading

Factor 1: Good for Personal Economy and Consumer Benefits (F1)

Internet advertising is a valuable source of information about local sales.

0.792

Internet advertising helps me keep up-to-date about products/services available in the marketplaces.

0.781

Internet advertising creates brands image. 0.693

In general, Internet advertising promotes competition, which benefits the consumer.

0.531

Internet advertising is a valuable source of information about latest fashion.

0.420

Factor 2: Value Distortion (F2)

Most Internet advertising distorts the values of our youth. 0.856

Some products in Internet advertising have negative effects on our society.

0.711

Internet advertising promotes undesirable values in our society. 0.667

Most Internet advertising insults the intelligence of the average consumer.

0.591

Factor 3: Good for Economy (F3)

Internet advertising helps to raise our standard of living. 0.819

Internet advertising is essential. 0.743

Internet advertising results in better products for the public. 0.548

In general, Internet advertising helps out nation's economy. 0.515

Factor 4: Materialism (F4)

Internet advertising encourages people to buy something to impress others

0.633

Internet advertising promotes a materialistic society. 0.534

Internet advertising provides information on what is cool. 0.533

Factor 5: Negative Attitudes (F5)

Most Internet advertising is misleading. 0.808

In general, Internet advertising does not provide a true picture of the picture advertised.

0.736


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Factor 6: Consumer Manipulation (F6)

Because of Internet advertising, people buy a lot of things that they do not really need.

0.698

Internet advertising persuades people to buy things they should not buy.

0.616

Government should regulate Internet advertising. 0.600

Factor 7: Webeconomics (F7)

Getting online will become too expensive if there is no Internet advertising.

0.829

Website operators will charge their users if there is no Internet advertising.

0.721

Factor 8: Hedonic/Pleasure (F8)

It will be boring to surf on the Internet without Internet advertising.

0.735

Sometimes Internet advertisements are even more enjoyable than other media contents.

0.531

Sometimes, I like to think about what I see on Internet advertising.

0.513

Factor 9: Product Information (F9)

Internet advertising provides information about products/services.

0.587

��

TABLE 6 Factor Analysis of Attitudes About Internet advertising ��

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TABLE 7. Regression of Belief Factors

Multiple R: 0.738

R Square: 0.544

Adjusted R Square: 0.522

Standard Error of the Estimate: 0.691

df Sum of Squares

Mean Square

Regression 9 108.272 12.030

Residual 190 90.728 .478

Total 199 199.0

Belied Factors Unstandardized Coefficient Beta

t

Good for Personal Economy and Consumer Benefits

!��"� ��

Value Distortion .!�!�� .!�� !�

Good for Economy !��

Materialism !�!� � !��"�

Negative attitude .!�!�!� .��" "�

Consumer Manipulation !�!!�� !�!��

Webeconomics !��"� ��

Hedonic/Pleasure !��

Product Information !��

TABLE 8 Hierarchical Regression Predicting Attitudes towards Internet advertising

R Square Standardized Beta * t

Demographics

Gender 0.050 0.650

Age -0.052 -0.532

Education -0.167 -2.349

Occupation

0.153 1.552

R Square1 0.042


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Internet Usage

Online experience 0.104 1.552

Online shopping interest

-0.312 -4.494

R Square2 0.148

Beliefs About Internet Advertising

Good for Personal Economy and Consumer Benefits

0.447 8.252

Value Distortion -0.083 -1.625

Good for Economy 0.456 8.840

Materialism -0.009 0.173

Negative attitude -0.101 -2.050

Consumer Manipulation 0.008 0.164

Webeconomics 0.133 2.635

Hedonic/Pleasure 0.219 4.349

Product Information

0.155 3.047

R Square3 0.562

*Higher value demotes more positive attitudes towards Internet advertising in general Figure 1 Scree plot for factor analysis of beliefs towards Internet advertising

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SPSS Output Total variance ecplained

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BBA (Hons) Project Internet Usersâ€™ Attitudes and Beliefs About

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