Final the Effectiveness of Internet Advertising on Consumer Behaviour

8/16/2019 Final the Effectiveness of Internet Advertising on Consumer Behaviour

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“THE EFFECTIVENESS OF INTERNET ADVERTISING ON

CONSUMER BEHAVIOR”

A Report Submitted to

JIAJI UNIVERSIT! GA"IOR

I# $%rti%& Fu&'i&&me#t o' M%(ter o' Bu(i#e(( Admi#i(tr%tio#

At

MAHARAJA INSTITUTE OF MANAGEMENT AND TECHNO"OG!

Airport Ro%d) G*%&ior

Submitted To+ Submitted B,+

M(- SECHCHHA JAIN DEE$A. CHOUMA"

/F%0u&t,1 MBA IV /2345623471


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CERTIFICATE

This is to certify that Deep%8 C9oum%& student of MBA IV Seme(ter programmed has

completed M(- S*e09099% J%i# Major Research Report entitled “THE

EFFECTIVENESS OF INTERNET ADVERTISING ON CONSUMER

BEHAVIOR” under my guidance.

D%te+ SIGNATURE$&%0e+ /F%0u&t, Guide1


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AC.NO"EDGEMENT

I, Deep%8 C9oum%& express my sincere gratitude to M(- S*e09099% J%i# for giving me the

opportunity to work under her guidance on the project report “THE EFFECTIVENESS OF

INTERNET ADVERTISING ON CONSUMER BEHAVIOR”. I would like to express my

gratitude towards Mr- A09%& $i&&%i /Dire0tor 1) Dr- Subeer B%#er:ee / De%# ; A0%demi0(1-

I would like to express my special gratitude and thanks to Faculty Memers and other friends for

their valuale suggestions in the execution of project preparation. I am also thankful to other staff

memers that guided and helped me at each and every step whenever I re!uired.

I also acknowledge " convey thanks to the lirary staff, computer department of MIMT for their

kind and valuale support.

D%te+ DEE$A. CHOUMA"

$&%0e+ G*%&ior MBA IV Seme(ter


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DEC"ARATION

I, Deep%8 C9oum%& #tudent of M$% I& #emester of M%9%r%:% I#(titute o' m%#%


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ABSTRACT

The present research paper is focusing on the effectiveness of internet advertising on

consumer ehavior. %dvertising, 'onsumer $ehavior, promotion in the internet advertisingis the key factors. %dvertisers are anticipated to shift and expend millions in internet

advertising in the coming years than T&, print ads and other conventional marketing

media. (ith the rapid growth in technology, the internet is ecoming an important one

stop point for consumers in finding most of their needs. $e it communication, activity,

shopping, information explore, internet serves as a solution for all their re!uirements.

Many consumers are online every day for their individual work, ut do they oserve the

ads, posters displayed on that we page and most important their rememer value. The

current study examined the effectiveness of internet advertising on consumer

ehavior y performing. The study re!uired to decide the effectiveness of internetadvertising on reach and creation of attentiveness) to estalish the reliaility of internet

advertising through rememer) and to decide the relationship etween internet

advertising and purchase decision.

The target people were the *walior peoples. The study used stratified sampling method

to select + study respondents. The primary data was collected using !uestionnaires.

'ontent analysis was used to analy-e !ualitative data while the !uantitative data was

analy-ed using descriptive statistics using ###. Regression and 'orrelation analysis was

used to show the relationships among the variales. The data was presented through

percentages, means, standard deviations and fre!uencies. The study found that internetadvertising was effective on achieve and formation of awareness due to various usage,

and estalished that its reliaility as an advertising media was low compared to T&. Internet

advertising has important relationship with purchase decision of the consumers and

therefore is a key determinant in influencing consumer ehavior. The study determined that

there is a optimistic relationship etween internet advertising and consumer purchase

decision and further advocates that companies should perform a market research on the

different markets in various countries to make sure that the internet advertising

schemes eing reali-ed suits the targeted markets to get etter product purchases.

.e,*ord(+ Internet %dvertising, 'onsumer $ehavior, romotion, urchase decision.


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Tale 1.+ 7istriution of the respondents y age racket ...........................................//

Tale 1./ *ender distriution of the respondents ........................................................//

Tale 1.0 %ttitude towards %dvertisements................................................................./0

Tale 1.1 Time spent on various platforms of advertising ........................................../1

Tale 1.3 (atching the T& commercials during commercial reak .........................../1

Tale 1.5 'hange the channel during commercial reaks .........................................../3

Tale 1.6 checking an online advert ............................................................................/3

Tale 1.2 %d recall......................................................................................................./6

Tale 1.8 Mode of advertising influencing intention to uy product ......................../6

Tale 1.+ #tatements on internet advertising and purchase decision........................./8

Tale 1.++ Model #ummary ........................................................................................0

Tale 1.+/ %:9&% of the Regression ........................................................................0+

Tale 1.+0 'oefficient of determination ......................................................................0+

Tale 1.+1 'orrelation matrix and the coefficient of determination ...........................0/


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CHA$TER 4

INTRODUCTION

4-4 B%08o et

al., /1) >oyuncu and ;ien, /0?. The revolutionary change rought forth y

information technology has an significant impact on the everyday lives. It has

changed the way we do usiness y permitting retailers to offer unlimited range of

products and services to all customers from around the world at any point in time. The

Internet has appeared as an advertising intermediate =#ilk et al., /+?. Manycompanies have turned to the Internet to advertise their products and services) and the

Internet is estimated to e the most significant direct marketing channel for the

worldwide marketplace =Faer et al., /1) >o et al., /1) >orgaonkar and (olin,

//?. 'ompanies are pouring illions of dollars into Internet advertising to get greater

return on savings on ads =4dwards, /3) @oines et al.,/0?.

The Internet has given consumers more control in accessing information on products and

services. There are several factors that contriute to consumers pull for online contentA

consumers are the one who decide when, where, what, and how much commercial

content they wish to view =>orgaonkar and (olin, //?. The Internet enalesconsumers to access an unlimited range of products and services from companies

around the world, and it has reduced the time and effort they spend on shopping =>o et

al., /1?.

'onsumers play a much more active role in searching for information online with some

goal in mind, and that goal can influence individual ehaviors and responses to online

information and advertisements =#mith, //?. (ith the rapid advancement in the

computer industry, many companies have made the Internet as part of their

advertising media mix to take advantage of the online technologies ='alisir, /0?.

The Internet has ecome a popular advertising platform ecause marketers found that the

Internet possess greater flexiility and control over the advertising materials =7ucoffe,

+885?. #ince the Internet can e used as an efficient marketing communication

tool, oth scholars and practitioners are interested in understanding how to take full

advantage and maximi-ing the value of this communication medium =Rodgers and

Thorson,/?.


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4-4-4 T9e Co#0ept o' $romotio#

romotion is the component of a companyBs marketing system that involves delivery of

messages to target customers that emphasi-es the enefits of your rand, products and

services. % few common communication tools such as advertising are used in a

promotional plan. *oals of promotion include uilding rand awareness, creatingfavorale rand attitudes, gaining market share, inducing uying, uilding loyalty and

growing sales =>urt- /+?. To reach its promotional goals, a company develops an

effective promotional mix, which is a comination of strategies including advertising,

personal selling, sales promotion, direct marketing and pulic relations through a cost

effective allocation of resources =Roinson, +88+?.

In large companies, the marketing department has many roles. It determines the

promotional mix, estalishes the udget, allocates resources, coordinates the campaign,

supervises any outside resources, and measures the results. Manufacturers often develop a

promotional mix for each segment of the distriution channel. To promote a product to

large retailers that sells its products, a manufacture might want to use a mix of personal

selling, advertising, and uying discounts. This study focuses on advertising as one of the

strategies in the promotional mix used y company within India.

4-4-2 T9e Co#0ept o' I#ter#et Ad?erti(i#<

Internet advertising is a form of promotion that uses the Internet and (orld (ide (e

for the expressed purpose of delivering marketing messages to attract customers. 4xamplesof online advertising include contextual ads on search engine results pages, anner ads,

Rich Media %ds, #ocial network advertising, online classified advertising, advertising

networks and eCmail marketing, including eCmail spam. 9nline video directories for rands

are a good example of interactive advertising. These directories complement television

advertising and allow the viewer to view the commercials of a numer of rands. Response

to rand communication is instantaneous, and conversion to usiness is very high.

'onsumer can gather information aout products and services, communicate with other

consumers and firms for related products and services, and sometimes complete

transactions. %s the Internet session is a selfCselected environment of the consumer, the promotion message will e more effective. Internet advertising is also capale of

providing an experiential environment to the consumer through virtual reality interfaces

thus allowing the consumer to experience some of the features of products efore making

the purchase decision. 'onsumer can provide feedack content aout the product, to the

firm and to other consumers. % positive feedack ecomes a good promotion for the

marketer. % marketer can even exploit a negative feedack y solving the consumerDs

prolem and showing the commitment of the organi-ation to satisfying consumer needs.

'onsumer can also add Ecollective content to the medium through discussion forums like

the virtual communities =7ucoffe, +885?. In >enya, online advertising has gained

increased popularity with more people spending time online.


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4-4-@ T9e Co#0ept o' Co#(umer Be9%?ior

The term Gconsumer ehaviorG refers to actions and decisions that factor into a

customerBs purchase. Researchers, usinesses and marketers study consumer ehavior to

understand what influences a consumerBs shopping preferences and selection of productsand services. Multiple factors affect consumer ehavior, among them economic status,

eliefs and values, culture, personality, age and education =>otler, /1?.

Findings on consumer ehavior are used to develop methods and products that will oost

company performance and sales. 'ustomers are ecoming more powerful.

The numer of internet users in >enya was estimated at +./ million in /++

according to 'ommunications 'ommission of >enya =''>?. This majority of internet users

are youth especially university students, who regularly use the social network sites

through their moile phones, either searching for information or chatting with friends

online. Many students from the @iwaji


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C9%pter 2

"iter%ture Re?ie*

2-4 I#trodu0tio#

This section provides discriminating reference to some of the literature a through clearer

considerate of internet advertising idea and draw preceding research finding of the

effectiveness of internet advertising ased on determine of advertising effectiveness.

2-2 T9eoreti0%& Fou#d%tio# o' t9e Stud,

Touching appeals in advertising theory and standard conditioning theory in education

consumer ehavior form the hypothetical asis of this study. *eneral educational

research has een conducted on the psychology of passion =e.g., ;a-arus +821? and the

ways in which adCevoked feelings may persuade consumer response to marketing

communication =e.g., $atra and Ray +825) Holrook and $atra +826?. #cholars have also

practical that advertising may suggest oth positive and negative emotions when seeking

to persuade. Indeed, $rown, Homer and Inman =+882, p.++3?, recommend that from a

practical perception, Ethe relative power of positive and negative feeling effects

potentially could guide advertisersD decisions concerning execution strategies.

It has een recommended that ads use positive influence to make consumers like the ad

and then uy the product, and negative influence to evoke an uncomfortale state that

makes consumers desire the Esolution offered y the promoter =%aker, #tayman and

Hagerty +825?. Regrettaly, there are no promises that what the consumer actually

experiences will e the affective response the advertiser intended to create Research has

shown that this kind of disparity etween advertiser intentions and consumer response

occurs all too often ='otte, 'oulter and Moore, /1) 4nglis +88) #tout, Homerand ;iu

+88?. These insights notwithstanding, a numer of fundamental !uestions remain

unanswered with respect to ad appeals.

roponents o f applying classical conditioning to marketing elieve that the association

etween a product and positive stimuli may help explain the effect of many variales incommunication and attitude change. *orn =+82/? tested the effects of a positive

unconditioned stimulus on product preference. His results support the notion that the

simple association etween a product =conditioned stimulus? and another stimulus

such as music =unconditioned stimulus? can affect product preferences as measured

y product choice.

2-@ I#ter#et Ad?erti(i#<

%s a new advertising channel the Internet and particularly the (orld (ide (e

=(((? portion of the Internet, are challenging traditional forms of mass media

advertising =Hoffman and :ovak, +885) Hearn, Mandeville and %nthony, +882?.

Meeker =+882? defines a mass communication medium as the communication from Eone


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person or group of persons through a transmitting device =a medium? to a large audience

or market. The Internet offers an interactive alternative to mass media communication

through the use of we pages, discussion groups and email =Hoffman and :ovak, +885?.

%dvertisers will need to reCaddress their techni!ues, services and agency structure and

evolve new communication strategies for the Internet as market share is eing lost to

this more personali-ed, interactive form of Internet advertising.

#chlosser et al., =+888? surveyed a national sample of over 1 participants and found no

majority opinion of Internet advertisingCaout a third of the participants liked, disliked,

and felt neutrally toward Internet advertising respectively. The Internet users found online

advertising was informative ut less entertaining, and it did not encourage them to

make purchases even they did not perceive it to increase product prices.

>orgaonkar and (olin =//? examined the differences etween heavy, medium, and

light we users and concluded that Eheavier users hold stronger eliefs aout and attitudestoward (e advertising which likely lead to stronger purchase intent=p /+?.

2-5 I#te


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2-7 Co#(umer Be9%?ior

%ccording to (arner, consumer ehavior is the study of individuals, groups, or

organi-ations and the processes they use to select, secure, and dispose of products,

services, experiences, or ideas to satisfy needs and the impacts that these processes have

on the consumer and society =Malcolm?. (arner emphasi-ed the consumption related ehaviors are often undertaken collectively. For example, some activities performed y

individuals ut consumed y a family or group of people, similar as organi-ation

purchasing activities usually followed y group decisions. $eside this point, the

consumer ehavior is not just purchasing, ut has usage and disposal the goods, this type

of information always e useful for company to make marketing decisions =Malcolm?.

Measuring customer ehavior is a crucial part of any usiness. >nowing what the

consumer wants and how he acts is vital in terms of product design, and marketing

=Todd, +886?.

2- I#ter#et Ad?erti(i#< %#d Co#(umer Be9%?ior

The evolution of the Internet as a gloal communication infrastructure ='ae, /? has

created a new advertising channel for advertisers and advertising agencies to utili-e and

will provide advertisers with the means to more cost effectively target their promotional

messages to consumers. %s consumers experience and respond to stimuli around them,

emotions arise. Their reactions manifest themselves as physiological changes they

experience as feelings. ;ikewise, as people react to stimuli online. 9n the other hand,

when customers repeatedly experience the same stimuli, they may not cause anyemotional response. eople ecome conditioned to ignore the everCpresent ads on (e

sites, which is called ad lindness =(olhandler, +888?.

%dvertising and promotion offer a news function to consumers. %s Koo (., #uh >. and

;ee M. =//? mentioned in their report, personal interactions with other customers and

service providers play a very important role while shopping online. &iewers of ads learn

aout new products and services availale to them, much like they learn aout events in

the news. 'ustomer ehavior at this stage encompasses expressions of curiosity.

'onsumers have a rational response to advertising when they look at the features of a

product or service. This response focuses on a logical listing of all the functional aspectsof the offering. This is an intellectual response, rather than an emotional one =;ee, //?.

'onsumer ehavior splits etween loyalty and alienation depending on how well the

product lives up to its advertised enefits =Thorson, /?. 'orporate ehavior L such as

scandals or charity work L can also affect alienation and loyalty responses. 9nce the

consumer makes this choice, advertising and promotion are not likely to undo that decision.

The 'annonC$ard Theory that (alter 'annon and hilip $ard advocated suggests human

eings feel emotions first, and then act upon them. (hen customers visit a (e site, the

ads they encounter evoke an emotional responseAefore they even decide what their next

step.


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CHA$TER THREE

RESEARCH METHODO"OG!

@-4 I#trodu0tio#

This section focal point on research methodology that was used in the study. It offers a

detailed explanation of the research advance adopted in this study. Research design, target

people, research instruments, data collection and analysis methods used were presented in

the conse!uent sections.

@-2 Re(e%r09 De(i


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@- D%t% A#%&,(i(

The study applied oth nominal and ordinal scale to measure a range of factors

estalishing the effectiveness of internet advertising on consumer ehavior and an

interval scale in determining the relationship etween internet advertising and

consumer ehavior. 7escriptive statistics was used to analy-e this data. The meanresponses, standard deviation and other relevant statistics were computed to etter

understand the data. The data collected was compiled and edited to check for logical

inconsistencies. The data was then coded according to the responses. Relationships

etween responses was assessed and presented using tales and graphs and analysis was

done using ###. Regression and 'orrelation analysis was applied in this study to reveal

relationships among variales in the findings from the data.


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CHA$TER FOUR

DATA ANA"!SIS) RESU"TS AND DISCUSSION

The respondents were also asked to indicate their age racket. The study findings areillustrated in Tale 1.+.

T%b&e 5-4 Di(tributio# o' t9e re(po#de#t( b, %


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5-2 E''e0ti?e#e(( o' i#ter#et %d?erti(i#< o# re%09 %#d 0re%tio# o' %*%re#e((

The first ojective of the study was to determine the effectiveness of internet

advertising on reach and creation of awareness. The study sought to estalish whether the

respondents were aware of various forms of advertisements adopted y various companies.Majority of the respondents =82? attested to eing aware of various forms of

advertisements adopted y various companies. This illustrates that the effectiveness of

internet advertising on reach a nd creation of awareness was determined y the level of

knowledge aout the existing platforms of advertisements adopted y various companies in

*walior.

The respondents were asked to indicate their attitude towards advertisements. Tale 1.0

illustrates the study findings.

T%b&e 5-@ Attitude to*%rd( Ad?erti(eme#t(

Fre!uency ercent

Informative 03 03

'reates awareness 0+ 0+

4ntertaining /3 /3

Irritating 0 0

%nnoying 0 0

(aste of time 0 0

Total + +

#ource Field data.

%s shown in Tale 1.0, most of the respondents =03? indicated that advertising was

informative, with a closer percentage indicating creation of awareness. 0 indicated that

advertising was either irritating, annoying or a waste of time. These findings mean that

most of the respondents had a positive attitude towards advertising as illustrated y their

various perceptions aout the use of advertising. This clearly shows a positive attitude

toward advertising and hence is a good indication for marketers. In order to further

identify the effectiveness of internet advertising on reach and creation of awareness, the

respondents were re!uested to indicate the amount of time spent on various platforms of

advertising. The responses were rated on a five point ;ikert scale where +Nless +hr, /N+ C

/hrs, 0N/ C 1hrs, 1N1 C 5hrs while 3Nover 5hrs.


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T%b&e 5-5 Time (pe#t o# ?%riou( p&%t'orm( o' %d?erti(i#<

Mean #tandard deviation

T&, Movies /.1/ +./1+

:ewspaper, Mages +.++ +.06/Radio +.0 .8/6

Internet 1./+ .3+3

#ource Field data.

%ccording to the findings in Tale 1.1, on an average, a person spends more than 1 hours

on the internet during his free time which is more than that of T& and movies, radio and

print medium. Hence, on an average the exposure of internet to an individual is around 1more than that of other mediums i.e. the reach of medium internet is much etter than that

of others.

The study sought to estalish whether the respondents watched the T&O or listened to Radio

commercials during commercial reak. The findings are as shown in Tale 1.3.

T%b&e 5- %t09i#< t9e TV 0ommer0i%&( duri#< 0ommer0i%& bre%8

Fre!uency ercent

Kes 6 6

:o 0 0

Total + +

#ource Field data.

%ccording to the findings, the majority of the respondents attested to watching the T&Ocommercials during commercial reak. This implies that for television commercials, around

6 of consumers had a positive perception towards advertising on T&.


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T%b&e 5-7 C9%#


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%dverts, op L up ads or Floating ads. These ads either lock the view of the content, or

appear right in the middle of the page, or keeps on floating =moving? around which is

considered to e very irritating for the consumers. 'hecking the ads determined the level of

interaction with the online ads. Therefore, even though the reach of internet is much higher

than that of other modes, its aility to attract consumers for awareness creation is very

low.

The respondents were further asked to indicate their purpose of using internet. The study

findings are illustrated in Figure 1.+.

Fi


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T%b&e 5- Ad re0%&&

Recall

Fre!uency ercent

T& Kes 21 21 :o +5 +5

9nline ads Kes 0 0

:o 6 6

Total + +

#ource Field data.

This is for the last three ads that they had seen consciously or unconsciously. In case of T&

ads, 21 rememered their last three ads which is a very good score in terms of creating

awareness. In case of online ads, only 31 could rememer their last three interactions

with the online ads. Therefore, one can easily make out the reliaility of online and T& ads

recall values. The study found out that T& ads are much reliale than internet advertising and

other forms of advertising.

5-5 Re&%tio#(9ip bet*ee# i#ter#et %d?erti(i#< %#d pur09%(e de0i(io#

The third ojective of the study was to determine the relationship etween internetadvertising and purchase decision. Respondents were asked to indicate the mode

advertising that mostly influenced their decision to purchase a product. The results were

taulated in Tale 1.8.

Tale 1.8 Mode of advertising influencing intention to uy product

Fre!uency ercent

Maga-ines and newspaper +6 +6

Friends and relatives 1 1

T& 'ommercial /8 /8

9nline advertisements 5 5

#ocial Media L $logs, forums, #ocial :etworking sites 2 2

Total + +


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#ource Field data.

$ased on Tale 1.8 aove, the highest numer of students, 1 of the respondents were

influenced to uy a product ased on information provided y friends and relatives,

with T& commercials eing second. 9nline advertisements were least in influencing

their decision at 5. Therefore, friends and relatives were the major influencers ehinddecision making. This depicts that traditional form of advertising has an edge over

internet advertising in terms of consumer preference to mode of advertising. Traditional

mode got over 25 preferences than that of internet advertising which is a huge margin.

#econdly, the respondents were also asked to indicate whether the internet ads they came

across influenced their purchase decision. 3/ of the respondents indicated that the internet

ads they came across never influenced their purchase decision while 12 posited that the

internet ads they came across influenced their purchase decision. This depicts that the

internet advertising influenced purchase decision of the customers to a moderate extent as

only nearly half of the respondents were influenced purchase decision.

In order to further determine the relationship etween internet advertising and

purchase decision, the respondents were re!uested to indicate their level of agreement on

relevant statements on effects of internet advertising on purchase decision. The responses

were rated on a five point ;ikert scale where 3CTo a very great extent, 1C To a great

extent, 0CTo a moderate extent, /CTo a little extent, and +CTo no extent. The mean and

standard deviations were generated from ### and presented in Tale 1.+

Tale 1.+ #tatements on internet advertising and purchase decision

#tatements on Internet advertising and purchase

decision

Mean #tandard

deviation

Internet advertising influences customersD purchase

decision

1./+ .3+0

duration of page viewing is a strong determinant of

the aility to recall anner ads

1.+0 .615

%nimation content, the shape of the anner ad, and

fre!uency of the ad =repetition? leads to higher

advertising recall

0.8/ .21+

'ompanies should aim to strengthen customer

interactions with advertisements on the (e

1.++ .5/


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Most companies provide a generic experience to all

'ustomers rather than relying on customer analysis to

deliver a personali-ed experience.

1.+ .602

(hen customers weigh enefits, they ecome

4motionally involved with advertising and promotion.

1.3 .560

Repeated advertising messages affect consumer

$ehavior. This repetition serves as a reminder to the

consumer.

0.82 .216

#ource Field data.

The study estalished that Internet advertising influences customersD purchase

decision =MeanN1./+? and duration of page viewing is a strong determinant of the aility

to recall anner ads. 9ther factors as repeated advertising messages affect consumer

ehavior. This repetition serves as a reminder to the consumer =MeanN0.82?,

and that animation content, the shape of the anner ad, and fre!uency of the ad repetition

leads to higher advertising recall .This implies that the internet advertising is a key

determinant of purchase decision of the customers as they consider it to e an

interaction point etween them and the company from which they uy their products from.

5- I#'ere#ti%& (t%ti(ti0(

In determining the effectiveness of internet advertising on consumer ehavior, the study

conducted a multiple regression analysis to determine the nature of relationship etween

the variales.

The regression model specification were as follows

KNPQ+S+ Q. (here)

KN consumer ehavior S+N internet advertising N error term Ncoefficient

PN constant

The study further applied multiple regressions to determine the predictive power of the

internet advertising on consumer ehavior. The researcher conducted a multiple regression

analysis so as to test relationship among variale =independent? on the consumer

ehavior. The researcher applied the statistical package for social sciences =### & +6.?

to code, enter and compute the measurements of the multiple regressions for the

study.


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'oefficient of determination explains the extent to which changes in the dependent

variale can e explained y the change in the independent variales or the

percentage of variation in the dependent variale =consumer ehavior? that is

explained y the independent variale =internet advertising?.

T%b&e 5-44 Mode& Summ%r,

Model R R #!uare

%djusted R

#!uare

#td. 4rror of

The 4stimate

+ .8+8 .213 .628 .5/60

#ource Field data.

The independent variale that was studied, explain only 21.3 of the consumer ehavior as

represented y the R /

. This therefore means that other factors not studied in this research

contriute +3.3 of the consumer ehavior. Therefore, further research should e

conducted to investigate the other factors that affect consumer ehavior.

T%b&e 5-42 ANOVA o' t9e Re


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T%b&e 5-4@ Coe''i0ie#t o' determi#%tio#

Model


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T%b&e 5-45 Corre&%tio# m%tri %#d t9e 0oe''i0ie#t o' determi#%tio#

'onsumer ehavior Internet advertising

'onsumer ehavior =r?

=p? #ig. =/ tailed?

+.

Internet advertising =r?

=p? =/ tailed?

.281

.+2

+.

#ource Field data.

%ccording to the Tale 1.+1, there is a positive relationship etween consumer

ehavior and internet advertising of magnitude .281. The positive relationship

indicates that there is a correlation etween the consumer ehaviors with internet

advertising.

This notwithstanding, all the factors had a significant pCvalue =pU.3? at 83

confidence level. The significance values for relationship etween consumer ehavior

and internet advertising was .+2. This implies that internet advertising was a significant

factor on consumer ehavior.

5-7 Di(0u((io# o' Fi#di#


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CHA$TER FIVE

CONC"USION AND RECOMMENDATIONS

CONC"USIONThe study recogni-ed that friends and relatives were the major influencers ehind

decision making. This represents that conventional form of advertising has a frame over

internet advertising in terms of consumer first choice mode of advertising. Traditional

approach got high preferences than that of internet advertising which is a huge margin.

%ccording to 'ho =/0? in the developing economies the traditional form of

advertising has a etter market share compared with the internet advertising in terms of

consumer preference approach of advertising.

The study recogni-ed that internet advertising influenced uying decision of the

customers to a reasonale extent as only nearly half of the respondents were influenced

uying decision. The study recogni-ed that internet advertising is a key determinant of

uying decision of the customers. The study also recogni-ed that internet advertising has

important relationship with uying decision of the consumers. The findings supplement

earlier findings of *oldsmith and ;afferty =//? that internet advertising is a key

determinant of uying decision y the customers and that internet advertising has an

association with uying decision of the consumer.

The purpose of the study was to conclude the effectiveness of internet advertising on

consumer ehavior using a sample of *walior region. %fter analysis of the study findings,the study concludes that the effectiveness of internet advertising on achieve and

creation of awareness was determined y the level of information aout the existing

platforms of advertisements adopted y various companies in *walior and time

spent on various media. This implies that the reliaility of internet advertising is !uite

low. The research estalished that T& advertising is more reliale than internet

advertising therefore conforming to 7anaher and Mullarkey =/0?, that T& ads are much

reliale than internet advertising.

The study concludes that internet advertising influenced uying decision of the

customers to a reasonale extent as only nearly half of the respondents were influenced uying decision. However, internet advertising is a key determinant of uying decision

of the customers as they think it to e a communication point etween them and the

company from which they uy their products from. The study also concludes that internet

advertising has significant relationship with uying decision of the consumers. The study

further concludes that internet advertising gives most to the consumer ehavior and that

internet advertising was a important factor in predicting the consumer ehavior.


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RECOMMENDATIONS

The study recogni-ed that the reliaility of internet advertising is low and therefore

suggests that the management of companies using internet advertising should offer

uni!ue skill to its consumers ased on consumer analysis to deliver a personali-ed

experience to the consumers, 'alisir =/0?. The study also estalished that internet

advertising is efficient in reach and creation of awareness and recommends that the

companies should spend more in internet advertising to enlarge their market share and

provide product information.

Finally, the study determined that there is a positive connection etween internet

advertising and consumer uying decision and additional recommends that companies

should perform a market research on the different markets in a various countries to make

sure that the internet advertising initiatives eing implemented suits the targeted markets

to get etter product purchases. This is ecause there survive different ackground realities

etween different markets (olin =//?.


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A$$ENDICES

A$$ENDI= I+ RESEARCH >UESTIONNAIRE

SECTION A ; BAC.ROUND INFORMATION

+. %ge *roup =yrs? ☐ up to +2 ☐+8 to /3 ☐/5 to 1 ☐1+ to 33 ☐ 33 Q

/. *ender ☐ Male ☐ Female

0. (here is your place of residenceV

SECTION B ; ATTITUDES) REACH AND AARENESS

1. 7o you like %dvertisementsV

☐Kes ☐ :o

☐Informative ☐Irritating

☐4ntertaining ☐%nnoying

☐'reates awareness ☐(aste of time

3. How much time do you spend onV

T&, Movies ☐U +hr ☐+ C /hrs ☐/ C 1hrs ☐1 C 5hrs ☐W 5hrs

:ewspaper, Mages ☐U +hr ☐+ C /hrs ☐/ C 1hrs ☐1 C 5hrs ☐W 5hrs

Radio ☐U +hr ☐+ C /hrs ☐/ C 1hrs ☐1 C 5hrs ☐W 5hrs

Internet ☐U +hr ☐+ C /hrs ☐/ C 1hrs ☐1 C 5hrs ☐W 5hrs

5. 7o you watch the T&O or listen to Radio commercials during commercial reakV

☐Kes ☐ :o

☐Informative ☐Irritating

☐4ntertaining ☐%nnoying

☐'reates awareness ☐(aste of time


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6. I change the channel during commercial reaksX

☐ :ever ☐sometimes ☐depends on ad ☐often ☐every time

SECTION C+ AD RECA""

2. (hich is the last :ewspaperOMaga-ine ad you rememerV (hich rand was itV

++. (hich is the last T& commercial you rememerV (hich rand was itV

8. :ame any three T& commercials you rememer latelyV

+.

/ 0.

+. 7o you seeOcheck online adsOmails when you surf the internetV

☐ :ever ☐ sometimes ☐depends on ad ☐ often ☐every time

++. (hich is the last online ad you rememerV (hich rand was itV

+/. :ame any three online ads you rememer latelyV

+.

/.

0.


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SECTION D+ INF"UENCERS) $REFERENCE AND $URCHASE DECISION

+0. Kou use the internet forV =Rank them in order of your preference?

☐'hatting and #ocial :etworking ☐

☐4mail ☐

☐Information ☐

☐4ntertainment ☐

☐4 C'ommerce ☐

☐7ownloading ☐

+1. (hat mode of advertising influences you to uy any productV

☐Maga-ines and newspaper

☐Friends and relatives

☐T& 'ommercial

☐9nline advertisements

☐#ocial Media L $logs, forums, #ocial :etworking sites

+3. (hich mode of advertising would you preferV =Rank in order of preference?

☐T& 'ommercials ☐

☐rint %ds :ewspaper, Maga-ine ☐

☐$anners, osters ☐

☐9nline %ds $anners, 4mails, ☐

+5. Have you made any purchases after seeing internet adsV

☐ Kes ☐ :o


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i

+6. (hat is the relationship etween internet advertising and purchase decision, lease

tick where appropriate 3CTo a very great extent, 1CTo a great extent, 0CTo a

Moderate extent, /CTo a little extent, and +CTo no extent.

+ / 0 1 3

#tatements on Internet advertising

and purchase decision

To no

4xtent

To a

little

extent

To a

moderate

extent

To a

great

extent

To a

very great

extent

Internet advertising influences customersD

purchase decision

duration of page viewing is a strong

determinant of the aility to recall anner ads

%nimation content, the shape of the anner

ad, and fre!uency of the ad =repetition?

leads to higher advertising recall

'ompanies should aim to strengthen

customer interactions with advertisements on

the (e

Most companies provide a generic

4xperience to all customers rather than

Relying on customer analysis to deliver a

personali-ed experience.(hen customers weigh enefits, they

$ecome emotionally involved with

advertising and promotion.

Repeated advertising messages affect

'onsumer ehavior. This repetition serves as

a reminder to the consumer.


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Final the Effectiveness of Internet Advertising on Consumer Behaviour

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