MELJUN CORTES Online Advertising THESIS WRITING in MBA

7/27/2019 MELJUN CORTES Online Advertising THESIS WRITING in MBA

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Online Advertising in China: Beliefs

and Attitudes of Students as

Consumers

Thesis presented in partial fulfillment of the Requirements for

the Degree of Master in Business AdministrationJose Rizal University Graduate School

By

MELJUN P. CORTES1MELJUN P. CORTES MELJUN P. CORTES

MELJUN CORTES


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Background of the Study

This research study aims to describe and

measure the beliefs and attitudes of

students as consumers towards Network

or online advertising in China.

China is now the worlds second largest

economic power, next to Americas; in

2011, it has dislodged Japan in the globaleconomic race.

MELJUN P. CORTES 2MELJUN P. CORTES


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Background of the Study

Internet Usage in China has registered

impressive growth over the recent years,

both in urban and rural areas. Likewise,

online advertising has also grown

tremendously. However, to date, there

has been very little information about its

effectiveness as the newest advertisingplatform.

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Statement of the Problem

1. What is the profile of the respondents in terms of:1.1 Age

1.2 Gender

1.3 Income Range

1.4 Education

1.5 Residence

2. What are their beliefs about online advertising?

2.1 Does it increase their interest to seek products online?

2.2 Does it increase product awareness?

2.3 Does it create desire to purchase the advertised product?

2.4 Does it enhance the image of the advertised product?

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3. What are their attitudes towards online advertising?3.1 Are they in favor of online advertising?

3.2 Do they find the information adequate in online

advertising?

3.3 Do they find it useful in making a purchase - decision?

3.4 Is online advertising effective?

4. What are their behavioral responses to online advertising?

4.1 Will they continue to seek advertisements of products

online?

4.2 Will they buy products advertised online?

4.3 Will they recommend products advertised online?




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5. Is there a positive significant relationship between

the respondents profile and their beliefs?


the respondents profile and their attitudes?7. Is there a positive significant relationship between

beliefs and attitudes?

8. Is there a positive significant relationship betweenbeliefs and purchase decision?


attitudes and purchase decision?




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Significance of the Study

Primarily, this study hopes to fill the gap in

online advertising, which is a relatively

new advertising platform. Knowing the

beliefs and attitudes of customers to thisnew advertising platform is crucial in

crafting a strategic marketing program;

specifically in budgeting for the advertisingmix, which hugs the biggest chunk in

todays marketing.



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Theoretical Framework

IndependentVariables:

-Beliefs

-Attitudes

Dependent Variable:

(BehavioralResponse or Action)

Purchase-Decision

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Theoretical Framework

The study is based on the traditional

theory, which states that the customers

behavioral response (or Action in the AIDA

acronym) like making a purchase decisionis largely influenced by the beliefs and

attitudes of the customers on the

advertised product.



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Research Paradigm

Profile :

-Age

-Gender-Income range

-Education

-Residence

urban or Rural

Consumer

Behavior:

-Acceptability

(Searching)-Adequate

information

-Effectiveness

In terms

of support

andservice

Purchase

Decision

Product

Recommendation

INPUT PROCESS PRODUCT OUTPUT

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Research Paradigm

The research paradigm asserts that the

demographic profile of respondents affect

the beliefs and attitudes of the consumer,

which in turn affect the purchase-decision.In psychology, beliefs affect the attitudes,

which in turn, are then manifested in the

behavioral response of the customers, likein making a purchase decision.



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Research Methodology

1. Expository and Descriptive

2. A Researcher-Crafted Instrument in

Chinese was used to obtain the raw data,

which shall be pre-validated for contentvalidity and reliability; sample size, n = 100

Chinese graduate students from Metro

Manila.3. SPSS Version 16.0 shall be used for

statistical analysis and interpretation

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Population, Locale, and Sample

The population of the respondents are theChinese college and graduate students in

Metro Manila, Philippines. The sample (n=100)

comprised the Chinese college and graduate

students in the Philippines, from differentuniversities in Metro Manila, who were also

asked to help in the distribution of the

questionnaire.



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Conclusions

1. The respondents consist of 60 percent male

and 40 percent female; majority of whom are

coming from middle income families and are

taking up MBA and DBA in universities in MetroManila; their age range is from 20 to 32 years

old, with 80 percent belonging to age range 23

to 32 years old. All respondents have access

to the Internet and are computer-literate, andare exposed to online advertising. (See Table 4

to 12 from pages 37 to 40)

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Conclusions2. Descriptive statistics showed that majority of the

respondents are in favor of online advertising; in fact, 50

percent rated favorability of online advertising as high,

and another 50 percent, rated it as very high (Table 13

to Table 15 is from pages 40 to 41).

3. Likewise, majority of the respondents gave high to veryhigh ratings for adequacy/completeness and

effectiveness of online advertising (Table 16 to Table 22

from page 42 to 44).

4. In other words, with respect to consumer attitudes aboutproducts advertised online, the general consumer

attitude, as reflected in their ratings of favorability,

adequacy and effectiveness, is from high to very high

ratings. (Table 23 to 32 from Pages 45 to 48) 15MELJUN P. CORTES MELJUN P. CORTES


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Conclusions

5. On the null hypothesis about the correlation between

demographic profile and consumer attitude, the

respondents demonstrated weak correlations, as the

Pearson r on all five aspects of the profile, age, gender,

income range, educational level, and residence,urban/rural (Tables 33 to 37 from pages 49 to 53)

showed low values corresponding to weak correlations

per the Appendix B matrix on Pearson r values and

their interpretations. Therefore, the null hypothesis onthe issue that there is no significant relationship

between the demographic profile and consumer

attitudes on online advertised products is accepted.



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Conclusions

6. The weak correlation established in this study

between the demographic profile and consumer

attitudes on online advertising of products, only

shows that there are other factors that aresignificantly affecting the development of

consumer attitudes towards products advertised

online. These other factors may be both

internal or external to the respondents, butwhich could be the subject of another study.



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Conclusions

7. However, strong correlations were established between

consumer attitudes and purchase decisions. Majority of

the respondents who demonstrated high ratings on

attitudes towards online advertising showed high ratings

on purchase decisions (i.e., whether respondents willrecommend or buy the products advertised online). In

Table 38 on page 54 those who rated online advertising

as effective had a Pearson r = .816, significant at the

0.01 level (2-tailed); while in Table 39 on page 55, thosewho rated online advertising as both adequate and

effective, had Pearson r equivalent to .802 and .816,

respectively; both significant at the 0.01 level (2-tailed).



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Conclusions

8. These strong correlations between consumer attitudesand purchase decisions are well documented in

mainstream literatures in marketing using traditional

media, such as television, radio, and print, but not on

relatively new advertising platform like online advertising.

9. The regression analyses showing high goodness of fit

between the consumer attitudes and purchase decisions.

likewise validate the strong correlations between the said

variables, Tables 43 -45 (from pages 58 to 59).

10.The areas of concerns revealed in this study pertain to

pricing and availability of products advertised online,

where both got low ratings (Tables 28-29 on page 47).

Product quality got relatively, high rating.19MELJUN P. CORTES MELJUN P. CORTES


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Recommendations1. In view of the results of this study, present marketers in

China who are still in the traditional mode of advertisingwill have to revisit and rethink their advertising program

and budget allocations on their promotion mix, with

respect to television, radio and print. The growing

popularity of the Internet both in Urban and Rural China,is a potent force to reckon with concerning the

development of promotional mileage and impact to

consumers. Marketers may have to reallocate their

budget from the traditional media to online advertising,

the newest platform in marketing today. The results of

this study showed that indeed, there is a strong

correlations and regressions between consumer

attitudes and purchase decisions with respect to the

online advertising. 20

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Recommendations

2. Marketers may have to reinvent the wheel withrespect to penetrating the consumers through

the online advertising technology. Basically,

present-day marketers have more or less

mastered the A to Z of the traditionalpromotions mix, but they have yet to develop

and acquire mastery in the arts and science of

online advertising. With the robust economy of

China, and its huge consumer base, betterallocation of advertising resources by

marketers would significantly contribute to the

companys bottom line, among others.21MELJUN P. CORTES MELJUN P. CORTES


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Recommendations

3. A change of paradigm by marketers withrespect to consumer education is also a must-

do for marketers. With the high accessibility of

information available through the Internet,

consumers in the Digital Age are more awareand proactive. Marketing online must therefore

religiously stick to the tenet of truth in

advertising, because consumers could easily

validate the information on products advertised

online through the wealth of information in the

Internet, such as Google and Yahoo, among

others. 22MELJUN P. CORTES MELJUN P. CORTES


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Recommendations

4. Government regulators, such as the department of

trade and industry in China, or the AMA counterpart in

China, may have to be proactive in initiating measures

to manage, if not regulate, the growth and development

of online advertising in their market, at least, to protectthe consumers and the larger society, in general.

5. For future researchers, who would like to go into the

deep, are cordially invited to validate the findings of this

study, perhaps with a standardized instrument and alarger sample size to include other consumer types,

besides university students



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Recommendations

6. Online advertising is here and now. The

trend is overwhelming, its onslaught in the

marketing arena is unstoppable. Philip

Kotler and company have been caughtflat-footed by its powerful rampage. In this

regards, a development program matrix,

pertaining to the subject tackled in thestudy is hereby proposed, Table 46 on

page 66



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Online Sell and Shopping in

China



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Online Sell and Shopping in

China



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Introduction about Taobao

It is the shopping and sell website named Taobao which

is very popular in China, in includes anything that we can

buy or sell, it change people shopping style. In Taobao, it

is very convenience that we can cost 3 to 5 minutes to

finish the trade. The images/icons, visuals/colorsincrease interest to seek products online. Majority of the

respondents answer that the price of goods/services in

Taobao is reasonable. If we are not pleased with

goods/service that we already buy, then we can talk overwith seller through Alitong (chat tool) for replacement the

goods/service. If sellers have cheat behavior, cusetomer

can have right protection.



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introduction about Taobao

In Taobao website, we can see some recommendation

goods/service through colorful picture that attract

customer eyes. It enhance desire to buy, we can find

online advertising can help Increase sales. If want to buy

same kinds of things, we can seek, then Taobao will givemore choice, they are Classified by difference kinds of

brand. Majority of the respondents think that surfing/

search online increase awareness. In term of customer

Reponses of online product, if buyer get the goods anduse already, they can give evaluation in Taobao which

can give some advises for other buyers.



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How to ensure money of

customer safe in Taobao?



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It is a payment system named Alipay that we can login.

Launched in 2004, Alipay (www.alipay.com) is a

commonly used third-party online payment solution in

China. It provides an easy, safe and secure way for

millions of individuals and businesses to make andreceive payments on the Internet. The preferred online

payment tool of Internet merchants in China, Alipay

provides an escrow payment service that reduces

transaction risk for online consumers.

How to ensure money of

customer safe in Taobao?



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Alipay guarantee transaction

process

Choosingproduct

Payment toAlipay

Receivingand

confirmed

Alipaypayment tothe seller

DealSuccessful

UnmatchedItems

Deal closed

Alipay refundto buyer



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Thank you!

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MELJUN CORTES Online Advertising THESIS WRITING in MBA

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