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EFFECTIVENESS OF ONLINE ADVERTISEMENTS ON

CONSUMER BUYING BEHAVIOR.


(A case of Silchar region)

A project Submitted in Partial Fulfillment for the Award of

Master of Business Administration

Submitted by:

DIBYA JYOTI MANDAL


(Scholar ID- 15-50-121)

Department of Management Studies

NATIONAL INSTITUTE OF TECHNOLOGY, SILCHAR

2017

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EFFECTIVENESS OF ONLINE ADVERTISEMENTS ON
CONSUMER BUYING BEHAVIOR.
(A case of Silchar region)

A project Submitted in Partial Fulfillment for the Award of

Master of Business Administration

Submitted by:

DIBYA JYOTI MANDAL


(Scholar ID- 15-50-121)

Under the Supervision of

DR. UJJWAL KANTI PAUL


Assistant Professor
NIT Silchar

Department of Management Studies

NATIONAL INSTITUTE OF TECHNOLOGY, SILCHAR

2017

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NATIONAL INSTITUTE OF TECHNOLOGY SILCHAR, YEAR
ALL RIGHTS RESERVED

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DECLARATION

Thesis Title: Effectiveness of online advertisements on consumer buying behavior.

Degree for which the Thesis is submitted: Masters of Business Administration (MBA)

I declare that the presented thesis represents largely my own ideas and work in my own words. Where
others ideas or words have been included, I have adequately cited and listed in the reference materials.
The thesis has been prepared without resorting to plagiarism. I have adhered to all principles of
academic honesty and integrity. No falsified or fabricated data have been presented in the thesis. I
understand that any violation of the above will cause for disciplinary action by the Institute, including
revoking the conferred degree, if conferred, and can also evoke penal action from the sources which
have not been properly cited or from whom proper permission has not been taken.

----------------------------
(Signature)
Registration no.:

Date:

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ACKNOWLEDGEMENT

I feel profound happiness in forwarding this major project report as an image of sincere efforts. It is
almost inevitable to ensure indebtedness to all who generously helped by sharing their valuable
experience and devoting their precious time with me, without which this seminar report would have
never been accomplished. First and foremost I extend my thanks and gratitude to my guide Dr. Ujjwal
Kanti Paul Asst. Prof.(D.O.M.S NIT Silchar), under whose guidance this seminar could be
accomplished and who provided me the timely valuable inputs which enhanced my performance.
I am highly indebted to Dr.Ashim Kr.Das (HOD D.O.M.S NIT, Silchar) and others at the institution
for their valuable support and guidance. Last but not the least I extend my appreciation and recognition
to my family members and fellow mates for their support and assistance which helped greatly in the
completion of my project work.

DIBYA JYOTI MANDAL

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CERTIFICATE

It is certified that the work contained in this thesis entitled Effectiveness of online advertisements on
consumer buying behavior. submitted by DIBYA JYOTI MANDAL, Registration No. 15-50-121
for the award of Management of Business Administration is absolutely based on his/her own work
carried out under my/our supervision and that this work/thesis has not been submitted elsewhere for
any degree/diploma.

Signature of Guide ______________


Name of Guide: Dr. Ujjwal Kanti Paul
Department of Management Studies
NIT Silchar
Date:

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ABSTRACT

Internet is fast emerging as a powerful medium of advertising in the new millennium. With the number
of internet users increasing manifold, the new medium is viewed as the advertiser's dream. The internet
is the fastest growing medium in the 2000s with millions of users and an average annual estimated
growth rate of 124%. Internet advertising is becoming a part of some companies marketing strategy-
however it requires new strategies and thinking. The benefits of internet advertising are its ability to
cover people from different geographical area with varied tastes and preferences. The aim of this study
was to determine the impact of the dimension of online advertising to adolescent purchasing attitude in
Silchar. As it is found that although there are many users of internet only few have the attitude of
purchasing online, so this research is done to know effectiveness of online advertisements on consumer
buying behavior. The method use was descriptive research followed by exploratory factor analysis and
multiple regression analysis. Population of this study was adolescent who use internet. Sample
collection technique was convenience sampling of 126 respondents. The data is collected with the help
of structured questionnaire, which includes open end and close-ended questions. The result of
simultaneous testing of this study shows that online advertising has significant effect on the purchasing
attitude of adolescent as internet users in India. Based on partial testing, Advertising utility, Indignity,
and perception positively affect the online purchasing attitude of adolescents. However, irritative
nature of online ads negatively affects the online purchasing attitude of adults. Here the hypothesis
testing is done with the help of the regression analysis; this is to test the relationship between the two
attributes. Here the attributes are internet advertising and purchasing behaviour.

Some recommendations and suggestions as the number of companies advertising online is soaring, but
even then fraud and deception may reduce consumer confidence. Therefore, it should be ensured that
products and services are described truthfully in online advertisements. Trust or confidence can be
built in online business by using testimonials with the permission of customers. To avoid interference
in work, advertisements should be designed to meet the preferences of target customers or target
audience. Use of multi-media' and use of banner advertisements give viewers a chance to interact with
banners which helps in online advertising.

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CONTENTS

Declaration iv

Acknowledgement v

Certificate vi

Abstract vii

List of tables ix

List of graphs x

Chapter I: Introduction 1

Chapter II: Industry profile and product profile 11

Chapter III: Review of Literature 18

Chapter IV: Objective and Methodology 23

Chapter V: Analysis and Interpretation 28

Chapter VI: Conclusion and Limitations 41

Bibliography 44

Annexure 45

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LIST OF TABLES

Table No. Title Page No.


1.1 Growth of internet subscriber in India 6
5.1 Gender wise distribution 29
5.2 Age group wise distribution 29
5.3 Occupation 30
5.4 Educational qualification 30
5.5 Average internet usage 31
5.6 Influence in online purchase 31
5.7 Preferred type of ads 32
5.8 Ads related to product 32
5.9 Most visited sites 33
5.10 Most purchased items 33
5.11 Reasons of not purchasing 34
5.12 KMO Bartletts test 34
5.13 Total variance explained 35
5.14 Rotated component matrix 36
5.15 Model summary 38
5.16 ANOVA 38
5.17 Coefficients and significance 38
5.18 Hypothesis results 39

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LIST OF GRAPHS

Fig No. Title Page No.


1.1 Annual Advertising revenue 7
5.1 Scree plot 36

x
Chapter: I
Introduction

This Chapter comprises the following topics.

1.1. The concept of promotion


1.2. The concept of consumer behaviour
1.3. The concept of internet advertising
1.4. History of internet advertising
1.5. Web industry in India
1.6. Advantages and disadvantages of online ads.
1.7. Comparison of traditional and web advertising

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Introduction

Marketing is more than just distributing goods from the manufacturer to the final customer. It
comprises all the stages from creation of the product and the after- market, which follows the
eventual sales, advertising plays a very important role in this process. The product or service itself, its
meaning, packaging, pricing and distribution, are all reflected in advertising, which has been called
the lifeblood of an organization. Without advertising, the products or services cannot flow to the
distributor or sellers end on to the consumer of or user. The need for advertising developed with the
expansion of population and the flow of towns with their shops and large stores, mass production in
factories, infrastructure to deliver goods & services and increasing level education. Advertising grew
with the development of media, such as the coffeehouse, newspapers and the arrival of advertising
agencies.

1.1.The Concept of Promotion

Promotion is the component of a company's marketing system that involves delivery of messages to
target customers that emphasizes the benefits of your brand, products and services. A few common
communication tools such as advertising are used in a promotional plan. Goals of promotion include
building brand awareness, creating favorable brand attitudes, gaining market share, inducing buying,
building loyalty and growing sales (Kurtz 2010).To reach its promotional goals, a company develops
an effective promotional mix, which is a combination of strategies including advertising, personal
selling, sales promotion, direct marketing and public relations through a cost effective allocation of
resources (Robinson, 1991). In large companies, the marketing department has many roles. It
determines the promotional mix, establishes the budget, allocates resources, coordinates the
campaign, supervises any outside resources, and measures the results. Manufacturers often develop a
promotional mix for each segment of the distribution channel. To promote a product to large retailers
that sell its products, a manufacturer might want to use a mix of personal selling, advertising, and
buying discounts. This is known as the push policy. The same manufacturer might use a different
promotional mix of local and national advertising, in-store displays, sales promotion, and public
relations to reach consumers. The pull policy directs promotions towards the consumers. It is used to
create customer interest and demand. This study focuses on advertising as one of the strategies in the
promotional mix used by companies within India. Advertising & communication is usually through

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various forms of paid media -- TV and radio commercials, print ads, billboards and more recently,
product placements, social media and online ads.

1.2.The Concept of Consumer Behaviour

The term "consumer behavior" refers to actions and decisions that factor into customers purchase.
Researchers, businesses and marketers study consumer behavior to understand what influences a
consumer's shopping preferences and selection of products and services. Multiple factors affect
consumer behavior, among them economic status, beliefs and values, culture, personality, age and
education (Kotler,2004). Findings on consumer behavior are used to develop methods and products
that will boost company performance and sales. Customers are becoming more powerful, more
knowledgeable and more sophisticated, and research into modern consumer behavior is increasingly
important for businesses according. Advertising to attract consumers, providing better environment,
product, services and policies is important in improving todays consumer experience to support
businesses in retaining customers. This study seeks to determine and explains the effectiveness of
internet advertising in stimulating consumer response. The number of internet users in India was
estimated at 70.2 million in 2016 according to Communications Commission of India (CCI). This
majority of internet users are youth especially university students, who regularly use the social
network sites through their mobile phones, either searching for information or chatting with friends
online. Many students from the various Universities have embraced the evolution in technology, and
adopted latest variety of android products, tablets, ipads, and the popular models of Samsung galaxy
for easy access of the internet. The growth has been fuelled by the implementation of the ICT policy
by the government and the introduction of the fiber optic network offering fast internet connections.
This study used a sample of these university students from the main campus todetermine and explains
the relationship between internet advertising and consumer behaviour. The students come from a
diverse background and were ideal in studying various characteristics related to consumer behaviour.
Students are enrolled indifferent study programmes through fulltime and module II, with some
operating from outside the institution while others have residence within the university leading to
variability in exposure to advertising.

1.3.The Concept of Internet Advertising

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Internet advertising is a form of promotion that uses the Internet and World Wide Web for the
expressed purpose of delivering marketing messages to attract customers. Examples of online
advertising include contextual ads on search engine results pages, banner ads, Rich Media Ads, Social
network advertising, online classified advertising, advertising networks and e-mail marketing,
including e-mail spam. Online video directories for brands are a good example of interactive
advertising. These directories complement television advertising and allow the viewer to view the
commercials of a number of brands. If the advertiser has opted for a response feature, the viewer may
then choose to visit the brands website, or interact with the advertiser through other touch points
such as email, chat or phone. Response to brand communication is instantaneous, and conversion to
business is very high. Consumer can gather information about products and services, communicate
with other consumers and firms for related products and services, and sometimes complete
transactions. In India, online advertising has gained increased popularity with more people spending
time online.

1.4.History of internet advertising

Advertising has faithfully served the print industry for 200 years, and was applied to the internet with
every expectation of success. Web advertising Began with center and Siegels in famous green card
lottery message on The Usenet site in April 1994 and was followed in October by advertising
placements for AT & T, MCI, sprint, and Volvo on hot-wired and finally the idea caught on. The
advertisement grew in sophistication, and today there are static, rotating, scrolling, animated, flash
and interstitial banner ads al which is designed to generate traffic, increase brand awareness and
generate leads and sales. Internet companies were founded on advertising revenues, and for some
years the companies prospered.
Rate depended on: -
The type of advertisement.
Where it appeared on the WebPages.
How it integrated with content.
How well it matched the advertisers target audience.

Online advertising has to offer:

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Scalability - like television commercials, it doesn't cost very much to Increase the reach of an
online ad campaign. There is no need to print Additional copies of a magazine, or to
create and mail Direct-mail pieces.
Hot demographics - the online community is more affluent, better educated, and younger and
more willing to spend than the population at large. More and more people go online and the
number is ever increasing.
Targeted messages - unlike broadcast and print media, the internet allows advertisers to target
exactly who will see their ads, and in what context. Web publications serve every conceivable
audience, from the mass-market obscure niche groups. Beyond that, the technology leads target
customers by their computing platform (pcs or macintoshes), web browser (specific versions of
netscape navigator or microsoft internet explorer), domain type (. Com, .edu, .gov, .mil, or .net)
or individual domains (america online, IBM, prodigy).
Broad and flexible reach - while the net cannot yet match television's market penetration, the
size of the online audience is growing very quickly. More importantly, because you buy online
ads by the impression, you can buy as much or as little of that audience as you desire. And that's
true no matter how popular or specialized the site on which your ads run- as a rule, advertising
costs depend on how many impressions you buy, not on the size of a site's audience.
Cost-effective - partly because you pay only for exactly what you're getting, online advertising
can be extremely competitive with other forms of advertising. If you buy 1,000 ad impressions,
for example, you know that exactly 1,000 people will see your ad.
Good creativity - creative design of home page is very important for the surfer to get hooked on
to the site. Within seconds the user should get an idea about the site and where to go within it. If
the opportunity is missed the user many never return.

1.5.Web industry in India

The number of Internet users in India is expected to nearly triple from 125million in 2011 to 330
million by 2016, says a report by Boston Consulting Group (BCG). This rise in Internet penetration
will lead an increase in digital influence on people's purchase decisions. According to the report titled
From Buzz to Bucks: Capitalizing on Indias Digitally Influenced Consumers,, 40 per cent of
India's 90 million urban Internet users say that online activities such as product research and price
comparison influence what they buy. The digital influence, currently affecting $30 billion of urban
consumer spending is expected to greatly accelerate over the next four years. To determine how
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Internet use affects buying decisions, BCG's Centre for Consumer and Customer Insight surveyed
25,000 Indian consumers on their online activities during each step of the purchase cycle, in
101different product categories (Business Standard 2013).

Month Year Subscriber base (in millions)


Aug-06 97
Mar-07 113
Mar-08 137
Mar-09 153
Mar-10 175
Mar-11 207
Mar-12 254
Mar-13 312
Mar-14 374
Mar-15 402
Mar-16 462

Table 1.1: Growth of internet subscriber base in India (source: IAB)

1.5a. Youth dominance continues


Continuing previous years trends, School going kids, College going students and Young men/women
continue to account for the maximum internet users in the country with about 70% of all active
Internet users in urban India. The contribution share spread as follows,
School going Kids 18%
College Going Students 28%
Young Men/Women 27%
Both College going students as well as the Young men have recorded an all time high number of
penetration this year. A major factor for this trend may be attributed to the introduction of low cost of
internet enabled smart phones and other devices.

1.5b. Rise of Internet Access


With the internet becoming an integral part of everybodys lives, we have a majority of the medium
users (who access the Internet for 7 to 31 hours per week).Among the various demographic segments,
we see the non-working women accessing the internet the most followed by working women and

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college going students. This could be mainly due to availability of rich and engaging content online
for various user segments. Around 27% of the Young men are heavy users (i.e. who access the
Internet for more than 31 hours per week). The proportion of light users (those who access the
internet for less than 7 hours per week) is higher among the school going kids than the rest. With this
deepening penetration among the Indian population and the access extending to the handheld devices
Internet has indeed become an integral part of everyones lives. Now as the users grow mature, it
remains to be seen how the Internet usage evolves (IAMAI, 2012. In addition, since the first half of
2012, revenues have increased rapidly, which reveals a clear upward trend and increasing
significance for the field. The increasing trend of ad revenues is clearly illustrated in the revenue
diagram following, which has been copied from (IAB, 2016).

Figure 1.1 : Annual advertising revenue from 2012 through 2015 [Source: IAB, 2016]

The prevalent means of internet advertising are Search and Display Related Advertising, which
together are responsible for more than 70% of the total ad revenues (IAB, 2012). Search Advertising
involves two basic methods, namely paid listings, where text links appear at the top or side of search
results for specific keywords and contextual search where text links appear beside an article based on
the context of the content. Throughout the thesis, we will refer to such text-based ads as online text
ads.
Alternative formats of online advertisements range from the well known banners, to advertisements
that incorporate animation and sound and even to digital video commercials.

1.6. Advantages and Disadvantages of online advertisement


1.6a. Advantages:

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Target marketing: - a major advantage of the web is the ability to target very specific groups of
individuals with a minimum of waste coverage. In the consumer market. Through personalization
and other targeting Techniques, sites are becoming more tailored to meet once need and want.

Message tailoring: - as a result of precise targeting, messages can be designed to appeal to the
specific needs and wants of the target audience. The interactive capability of the net makes it
possible to carry on one-to-one marketing with increased success in both the business and the
consumer markets.
Interactive capabilities: - the interactive nature of the web leads to a degree of customer
involvement. Site visitors are already interested enough in the company and/ or products to visit.

Information access: - perhaps the greatest advantage of the internet is its availability as an
information source. Internet users can find a plethora of information about almost any topic of
merely by conducting search through one of the search engines. Once they have visited a
particular site, uses can garner a wealth of information regarding product specification, costs,
purchase information, and so on. Links will direct them to even more information if it is desired.

Creativity: - creatively design sites can enhance company's image leading to repeat visits, and
positively position the company or organization in the consumer's mind.

Exposure: - for many seller companies with limited budget the www (World Wide Web) enables
them to gain exposure to potential customers that heretofore would have been impossible. For a
function of the investment that would be required using traditional media, companies can gain
national and even international exposure in a timely manner.

Speed: - for those requiring information on a company, its products, and /or its service offerings,
the internet is the quickest means of acquiring this information.

1.6b. Disadvantages:

Measurement problem: - one the greatest disadvantage of the net is the lack of reliability of the
research numbers generate. A quick review of forecasts, audience profiles, and other statistics
offered by research providers will demonstrate a great deal of variance leading to a serious lack of
validity and reliability. One of the industry's largest and most sited trade publication has written
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an expose of a heavily sited internet research company, referring to the number it provides as
"scary" feathers have stressed concern over the fact that most sites figures or not audited, which
mainly to rampant cheating in the respect of the number reported.

Audience characteristic: - due imparts to the accelerating growth of the net, audience
characteristic change quickly. Numbers reported may be Completed quickly and are often vary
from one provided to the next.

Costs: - the cost of doing business on the mat continues to increase. While it is possible to
establish a site in expensively, establishing a good side and maintaining it is becoming more and
more costly. As noted earlier, levis For the cost of maintaining a site is considered "world-Class
was prohibitive and one of the reason for abandoning its e-commerce efforts.

Limited production quality: - although it is improving, net advertising does not offer the
capability of many competitive media for a production standpoint. While the advent of advanced
technologies and rich medium is narrowing the gap, the net still lags behind some areas.

Poor reach: - while the internet numbers are growing in leaps and bounds, its six is still far
behind that of television. As a result, interest companies have turned to traditional medium to
achieve reach and awareness goals. In addition statistics says that only a small percentage of sites
on the internet are captured and that the top 50 sites listed account for 95 percent of the site
visited.

Language: - if i am selling the goods through the media the buyer Prefer to get the information of
the products or services with his own language but the advertiser has no option than to advertise
in one single language which is a major disadvantage.

1.7. Comparison of Traditional and Web Advertising

Flexibility: the most obvious advantage of digital advertising over traditional methods is
nonetheless one of the most important to discuss: flexibility. As quickly as you can devise a new
ad or come up with fresh ideas, you can have that add playing across your digital signage and
other digital avenues with minimal downtime or resource expenditure.

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Adapting to the situation: traditional advertisements cant adjust with the time of day, make
noise to catch customers attention when you have a good deal to push, ormost impressively
make offers and advertisements designed for the customer passing by. That level of adaptability
and personalization will require an investment of time and effort, but its all possible with digital
advertising. Its up to youthe more effort you want to put into a digital advertising platform, the
better the results youll see.

Cross-platform integration: its not always easy, with traditional publishing, to make an ad
campaign work across multiple forms of media, multiple avenues of marketing. With a digital
marketing platform, however, you can create a consistent, integrated message across aisle ads,
video walls, mobile outreach, and more.

Interactivity: a digital sign can be an interactive touch screen, play video in reaction to motion,
and more. Traditional advertising is woefully limited in terms of interactivity. Sales poster with
a you are here label cant compete with a digital kiosk offering step-by-step directions to an
item on sale sent straight to your mobile device.

Data collection: in a way, traditional advertising could only dream of, digital solutions lend
themselves to unprecedented levels of data collection. Digital signage can help you can learn how
customers move around your business, split test one ad against another, and more. Traditional
advertising simply cannot collect that data in a useful way.

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Chapter: II
Industry and Product Profile

This chapter comprises the following topics.

2.1. Industry profile


2.2. Product profile
2.3. Online advertising operational definition
2.4. The government initiatives
2.5. Measuring the efficiency and effectiveness of a site.

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2.1. Industry Profile:
"Advertising is the ability to sense, interpret To put the very heart throbs of a business into type,
paper and ink." - leo burnett
This statement quoted by leo burnett a few decades ago still holds ground as strongly as it did back
then. Perhaps, with the new medium called the internet, we can substitute type, paper and ink with
site, page and link. Internet is fast emerging as a powerful medium of advertising in the new
millennium. With the number of internet users increasing manifold, the new medium is viewed as the
advertiser's dream. The internet is the fastest growing medium in the 2000s with millions of users
and an average estimated growth of 124% annually.It has great potential as an advertising medium.
Online advertising offers the advantage of reaching and interacting with the target audience,
irrespective of geographical barriers, in real time. Internet offers the flexibility of two-way
communication, through feedback and interaction in real time. Online advertising presents the
flexibility of moulding the campaign in response to the effectiveness in real time.
Internet advertising is becoming a part of some companies marketing strategy- however it requires
new strategies and thinking. The benefits of internet advertising are its ability to cover all
promotional objectives from awareness to action by leveraging all five elements in the promotion
mix. The internet is also a highly selective, cost effective media with greater measurability than any
other media.Despite higher global reach internet is not yet a local mainstream media. The internet
offer companies targeting well-educated, innovative, affluent males or students great potential for
success as their segments are highly represented. Products with high information intensity and high
buyer involvement are also appropriate for internet promotion due to its large information capacity at
low costs. Its distribution opportunity is especially suitable for the increasing channel of mail order
productsLow product fit or low audience fit companies can benefit by building a brand image to
establish a user link or simply to learn about interactive media. Traditional advertising is consumed
passively, yet on the internet, users have to actively select an advert. These changes the way
advertisers generate and retain customers. To persuade visitors to revisit and spend time on the
website, advertisers must fulfill real customer needs on a continuous basis. This requires clear

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objectives and targeting. Informative quality content, advertisement with interesting entertainment or
direct sales possibilities can add value to the customer.

2.2. Product Profile

Some of the important products offered by web advertising are listed below:
Web banner and panel ads: These are small rectangular graphic images that usually have a call
to action (like "click here"). These banners are placed on other high traffic web sites like yahoo,
AOL etc so as to get an opportunity to see (OTS). They can be placed at the top or bottom of a
page. Or anywhere you like them to be.

Interstitials: Another model of web advertising - a short-lived, usually animated ad that pops up
in the browser window for about 5-10 seconds while a page is downloading and then disappears.

Inline advertisements: Inline ads provide a way for sponsors to generate leads or deliver rich
brand building messages. Similar to print adversarial, inline ads integrate within site content,
ensuring that a site visitor will see them for sure. Example: when you search using meta crawler
and get results, you will see such inline ad in-between search results.

Pop-up windows: A pop-up window delivers the advertisement in a new window on top of the
site content. When you visit homepages on tripod.com or geocities.com (advertisement supported
free homepage sites), a secondary window automatically pops up continuously rotating
advertisement of sponsors.

Website sponsorships: Here, the entire website is sponsored by an advertiser. These sites are
usually content or service based and has a very high traffic because of their utility value.

Classifieds: Similar to classifieds in the real world, advertisers in cyberspace can pay for their
advertisements to be listed in online classifieds. From products and services to headhunting and
matrimonial, any subject is covered.

Mailing list ads: Mailing lists are e-mails sent to group of subscribers at regular intervals
focusing on a particular topic. These e-mails can contains tips, hints or even jokes for free and are
sustained by advertisements that are interspersed throughout the body of the e-mail. Ads are
usually in 6-8 line of text instead of graphics and animations like banner ads.
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Ads on chat: Chat is a service available on the net for two or more people to converse with one
another through their keyboards. Companies that offer these chat services for free, earn their
revenue from advertisements that are displayed to everyone using these chat services.

2.3. Online advertising operational definitions

Advertising network - a group of websites, which share a common banner server typically, a sales
organization, which manages the commerce and reporting. An ad network has the ability to deliver
unique combinations of Targeted audiences because they serve your banner or ad across multiple
Sites.
Ad view - an ad view, synonymous with ad impression, is a single ad that appears (usually in full
view without scrolling) on a web page when the page arrives at the viewers display. Ad views
are what most web sites sell or prefer to sell. A web page may offer space for a number of ad
views. In general, the term impression is more commonly used.
Bandwidth - the amount of information that can be transmitted over communications lines at one
time. The higher the bandwidth, the faster the web page loads. Limited bandwidth is the main
reason for keeping pictures small. Just as it seems we will never have fast enough computers, it
feels like we will never have enough bandwidth. The amount of research and development money
being thrown at this problem should yield surprising results before long.
Click - according to ad industry recommended guidelines from fast, a click is 'when a visitor
interacts with an advertisement.' this does not apparently mean simple interacting with a rich
media ad, but actually clicking on it so that the visitor is headed toward the advertisers
destination. (it also does not mean that the visitor actually waits to fully arrive at the destination,
but just that the visitor started going there).
Click through rate (ctr) - the response rate of an online advertisement, typically expressed as a
percentage and calculated by taking the number of click through the ad received, dividing that
number by the number of impressions and multiplying by 100 to obtain a percentage - example -
20 clicks / 1,000 impressions = .02 x 100 = 2% ctr
CPA - cost per action. The price paid by an advertiser for each 'action' that a content site
delivers. 'Action' may be a sale, a lead, a successful form fill-out, a download of a software
program or an e-commerce sale of a product. Both the action, price and terms of a cpa purchase

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are mutually agreed upon by the advertiser and content site and such a purchase typically involves
a back end tracking system provided by the advertiser that allows the content site to view clicks
and actions every 24 hours if they choose to do so.
CPC- cost per click. The price paid by an advertiser to a content site. When buying on a cost per
click model, the advertiser and content site have mutually agreed that the content site will
continue to display the advertisers ad creative until x number of clicks have been delivered - the
amount purchased. As with other forms of online advertising, s dependent on content,
CPM - cost per thousand (Roman numeral) impressions. The price paid by an advertiser for a
content site displaying their banner 1,000 times.
CPS - cost per sale. The price paid by an advertiser to a content site for each sale those results
from a visitor who is referred from the content site to the advertisers site. This type of buying
model is typically tracked with cookies, where the cookie is offered on the content site and read
on the advertisers site at the success page after successful completion of one transaction/sale.
Typical rates/bounties range between 5% and 25% of the retail price of the product or service
being sold. See also CPA above.
Cookies - client-side text file that is used by web servers to store information about the site visitor
and visitor behavior. Information pertaining to a site can only be ready the side that wrote the
information. Used to identify repeat visitors and track visitor behavior.
Effective frequency - the number of times an ad should be shown to one person to realize the
highest impact of the ad without wasting impressions on that individual.
Frequency - the number of times a given person will see an ad in a given time period. Gross
exposures/gross impressions - the total number of times an ad is shown, including duplicate
showings to the same person.
Hits - every time a file is sent by a server, be it text, graphic, video, and so on, it is recorded as a
hit. Not a reliable gauge to compare different sites, as one page with five graphic elements will
register six hits when viewed, while a page with no graphics will only register one hit.
Spam - originally posting an ad to multiple newsgroups, now used to describe unsolicited email
advertising. Named after a skit by Monty python, spam is one marketing and advertising
technique to avoid at all costs
View - a view is, depending on whats meant either an ad view or a page view. Usually an ad
view is whats meant. There can be multiple ad views per page views. View counting should

15
consider that a small percentage of users choose to turn the graphics off (not display the images)
in their browser.
Visit - a visit is a web user with a unique address entering a web site at some page for the first
time that day (or for the first time in a lesser time period). The number of visits is roughly
equivalent to the number of different people that visit a site. This term is ambiguous unless the
user defines it, since it could mean a user session or it could mean a unique visitor that day.

2.4. The government initiatives:

The government has taken key initiatives over the past few years to create an environment that is
conducive to e-commerce activity. These include the following
Announcement of the information technology act 2002, which put in place a cyber, law
regime in the country.
Announcement of the ISP policy for the entry of private internet service providers in Nov
1998
Permission to private ISPs to set up international gateways.
Permission of internet accesses through cable tv infrastructure.
Initiation of the setting up of the national internet backbone.
Announcement of the national long distance services beyond the service area to the private
area.
Complete non-monopolization of undersea fiber connectivity for ISP on august 2000.
Free right of way facility with no charge in cash or kind, to access providers to lay optical
fiber networks along national highways, state highways and other roads.
Permission of interconnectivity of government and closed user group (CUG) networks.
The establishment of public teleinfo centers having multimedia capabilities has been
permitted.
100% FDI allowed in B2B e-commerce.

2.5. Measuring the efficiency and effectiveness of their site.

What metrics should be considered when calculating the value of the web site, or the return on
investment? Lets start with performance and availability. To say that slow pages are the kiss of death
16
doesnt take all the possibilities into account. When national semiconductor asked its design engineer
customers about the need for speed, site visitors said that anything more than eight seconds for a
navigation page and 30 seconds for a data sheet was intolerable. The advertiser should also consider
the type and number of pages of their site that visitors look at during a single visit. Are more pages
better? When visitors first arrive and are investigating the depth and breadth of the offerings, more
pages is good. But if they are trying to solve a problem by slogging through the quagmire of your
section of "frequently asked questions" pages that are intertwined like the roots of swamp trees, more
is definitely not merrier.

a) Looking for patterns

If the advertiser makes use of cookies to analyze the path of each visitor, then they can start to make
assumptions about what people are looking for and if they had trouble finding it. The trick is to look
for patterns. The researcher, the comparison shopper and the buyer all have their own traffic patterns,
and its up to you to serve them according to their needs. If people are always clicking from the
product page to the warranty page and back, its good stewardship to put the pertinent information on
the product page and save them a click. Watch where they go and then do what you canto make their
way easier next time. The final consideration is how often people visit your site a Combination of
recency and frequency. Its great that somebody came to your site 10 times in one day, but if that day
was six months ago, it wont do you any good. The most desirable recency-frequency tally is
different for different types of sites. If your name is yahoo! Or aol, then you want all the people, all
the time. If your web site is located at http://www.urnsandcaskets.com, you may feel a little people
who come back day after day and stay a while.

b) Identifying prospects

Identifying what pattern is the best indication of imminent procurement which depends upon the
review of the site path taken by those who completed the purchase and watch for it again. Your site
can make special offer when a potential customer visits a certain number of times or looks at
particular pages. And then you can go one step further, called genialitys a Clever software that will
determine the fewest attributes common to those who Performed the desired act (purchase, register,

17
subscribe, etc.). It shifts Through mountains of data about your customers so you can more quickly
recognize the ones who are statistically most likely to buy, and it can tell you which offer is the one
most likely to make that sale. Taking all this into the consideration one can manage their site
measurement of effectiveness.

Chapter: III
Review of Literature

This chapter comprises the following topics.

3.1. Theoretical foundation of the study


3.2. Internet advertising
3.3. Integrated marketing communication
3.4. Effectiveness of internet advertising
3.5. Consumer behaviour
3.6. Internet advertising and consumer behaviour
3.7. Negative attitude towards internet advertising
3.8. Gaps in existing literature

18
3.1. Theoretical Foundation of the Study

Emotional appeals in advertising theory and classical conditioning theory in learning consumer
behaviour form the theoretical basis of this study. Extensive academic research has been conducted
on the psychology of emotion (e.g., Lazarus 1984) and the ways in which ad-evoked feelings may
influence consumer response to marketing communication (e.g., Batra and Ray 1986; Holbrook and
Batra 1987). Scholars have also observed that advertising may evoke both positive and negative
emotions when seeking to persuade. Indeed, Brown, Homer and Inman (1998, p.115), suggest that
from a practical perspective, the relative strength of positive and negative feeling effects potentially
could guide advertisers decisions regarding executional strategies.It has been suggested that ads use
positive affect to make consumers like the ad and then buy the product, and negative affect to evoke
an uncomfortable state that makes consumers want the solution offered by the advertiser (Aaker,
Stayman and Hagerty1986). Unfortunately, there are no guarantees that what the consumer actually
experiences will be the affective response the advertiser intended to create: Research has shown that
this kind of mismatch between advertiser intentions and consumer response occurs all too often
(Cotte, Coulter and Moore, 2004; Englis 1990; Stout, Homerand Liu 1990).

3.2. Internet Advertising


Bausch and Han (2006) stated that with the advent of popular Web destinations such as MySpace and
Facebook, a new kind of online community now occupy the centre stage in e-commerce, namely,
online advertising community. eMarketer (2009) projects that online advertising revenue from social
network websites in the United States will reach more than 17.9 million, or 15% of total U.S. Online
advertising revenues, by 2013. McLeod (2006) establishes the popularity of online communities also
19
have been growing in other parts of the world. A research report by Tecent (2012) suggests more than
20000 million users per month visit Google which is considered the largest network site in the world.
Leveraging this huge base of community users, Google earned US$120.9 billion in online advertising
revenue in 2012.Hart (2007) establishes the rapid growth of online advertising has caught the
attention of advertisers that hope to find new ways to harness these communities for their advertising
purposes. Mesure and Griggs (2007) established as the communities battle to garner long-term,
sustainable advertising revenues, they encounter the severerisk that members will feel exploited if the
sites suddenly appear over-run with ads.

3.3. Integrated Marketing Communication

The Internet has contributed to a greater adoption of integrated marketing communication (IMC)
strategies, by allowing marketers to communicate more directly with individual consumers (Low,
2000). Internet functions become integrated into a companys communications mix, which permits
the operation of the Internet as an advertising medium to be incorporated alongside more traditional
media types. The application of the IMC concept involves the progression away from the tradition
alone-to-many marketing communication model for mass media to the one-to-one communication, or
many-to-many communication model (Hoffman and Novak, 1996). The inclusion of the Internet in
the promotional mix will not eliminate the use of mass media advertising channels such as television,
radio, newspapers and magazines. However, the Internet may reduce the amount of mass media
advertising required. Arguably, this will occur because the personal computer with Internet access is
being utilized frequently by target audience members as an effective communication channel to make
both social exchanges using email and commercial exchanges to purchase products on the web. The
advertising industry is being challenged to create more direct, personal and interactive
communication with the target market through the use of the Internet. The influence of the Internet on
business-to-consumer (B2C) relationships has introduced a new dimension of interactivity to the
communication industry (Shiva, 1997).

3.4. Effectiveness of Internet Advertising

Various researchers have studied numerous factors that might have an impact on Internet advertising
recall. The factors include ad characteristics, Internet users viewing mode and duration of viewing,

20
campaign publicity, attitudes toward the website or ad, and curiosity and innovative advertising
strategy (Danaher and Mullarkey,2003; Goldsmith and Lafferty, 2002; Menon and Soman, 2002).
Danaher and Mullarkey (2003) examined the effects of such factors as viewing mode, visit duration,
text and page background complexity, and the style of banner ads on both aided and unaided recall.
The authors did not find any significant impact of the website context factors on advertising recall.
The key finding was that the duration ofpage viewing is a strong determinant of the ability to recall
banner ads; however, a minimum level of exposure (around 40 seconds per page) is required to
achieve a reasonable level of advertising recall.Dreze and Hussherr (2003) also examined the
effectiveness of ad characteristics on the ability to recall ad. Animation content, the shape of the
banner ad, and frequency of the ad (repetition) leads to higher advertising recall but not the size of the
banner.

3.5. Consumer Behaviour

According to Warner, consumer behaviour is the study of individuals, groups, or organizations 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).
Warner emphasized the consumption related behaviours are often undertaken collectively. For
example, some activities performed by individuals but consumed by a family or group of people,
similar as organization purchasing activities usually followed by group decisions. Beside this point,
the consumer behaviour is not just purchasing, but has usage and disposal the goods, this type of
information always be useful for company to make marketing decisions (Malcolm). It blends
elements from psychology, sociology, social anthropology and economics, and attempts to
understand the decision-making processes of buyers, both individually and in groups. It studies
characteristics of individual consumers such as demographics and behavioural variables in an attempt
to understand people's wants, and also tries to assess influences on the consumer from groups such as
family, friends, reference groups, and society in general. This definition clearly brings out that it is
not just the buying of goods/services that receives attention in consumer behaviour but, the process
starts much before the goods have been acquired or bought. A process of buying starts in the minds of
the consumer, which leads to the finding of alternatives between products that can be acquired with
their relative advantages and disadvantages. This leads to internal and external research.

3.6. Internet Advertising and Consumer Behaviour


21
The evolution of the Internet as a global communication infrastructure (Cae, 2000) has created a new
advertising channel for advertisers and advertising agencies to utilize and will provide advertisers
with the means to more cost effectively target their promotional messages to consumers.
Psychological factors such as thinking, feeling, sensation, and intuition directly correlate with
customers online advertising experience. Companies should aim to strengthen customer interactions
with advertisements on the Web, keeping both context and cognition in mind. Unfortunately, most
companies provide a generic experience to all customers rather than relying on customer analysis to
deliver a personalized experience. Theyve failed to innovate and bring the online advertising
experience to a whole new level of interaction and integration that would truly let them achieve
effective communication. As consumers experience and respond to stimuli around them, emotions
arise. Their reactions manifest themselves as physiological changes they experience as feelings.
Likewise, as people react to stimuli onlinefor example, to an online advertisementthey have
emotional responses that are directly proportional to their reactions to these stimuli. On the other
hand, when customers repeatedly experience the same stimuli, they may not cause any emotional
response. People become conditioned to ignore the ever-present ads on Web sites, which is called ad
blindness (Wolhandler, 1999).

3.7. Negative Attitude towards internet advertising


Richards and Curran, (2002) suggest, advertising has changed radically over the years due to new
techniques and technologies. The rapid proliferation of internet gadgets along with the technological
development has created a whole new channel for advertising named online advertising. Indias
online industry is expanding quickly. Online advertising has been developing as an important channel
for advertising. Public attitudes toward advertising have been a focus of attention for a long time
Tsang et al, (2004). Although some earlier studies reported positive attitudes toward advertising, most
of the recent researchers have found that consumers generally have negative attitudes toward
advertising. Zanot showed that attitudes toward advertising became increasingly negative after the
1970s Shavitt et al, (1998). But, in recent years relatively few surveys have been published assessing
public opinion toward advertising in general, as opposed to advertising in specific media. However,
Shavittand colleagues (1998) showed American consumers have positive attitudes toward advertising
in general.

3.8. Gaps in Existing Literature

22
On reviewing the literature, it was found that advertising has been dealt as a generic subject
irrespective of the different Medias. There has been very less research available on different
types/formats of different advertisement. Most of the research done on advertising has focused on
traditional Medias like newspapers, radios and televisions and very few have attempted to research
the important topic like online advertising. Further the research on advertising has been mostly
focused on developed nations and less on developing nations like India, irrespective of the fact that
India being third largest country in terms of Internet users population.

Chapter: IV
Objective and Methodology

This chapter comprises the following topics.

4.1. The problem statement


4.2. Objective of the study
4.3. Hypothesis
4.4. Research methodology

23
4.1. Problem Statement

Is online advertising effective in influencing the potential buyers?


Internet is one of the important mediums that own all kinds of features, which implies a great
potential and powerful advertising medium in the future. In addition, internet has a better impact than
traditional media in the features like format variety, affinity, and preservability. Furthermore, internet
is the only medium so far which owns the feature of interactivity. That creates lots of new
communication opportunities and possibilities that were unable to be achieved in the past because of
the limitation of media technologies. In spite of these whether the online advertisement is effective in
influencing the potential buyers in modern era. Adolescents and online attitude are valuable
information in determining ads strategy for companies, particularly online based ads. Based on the
background study described, problem definition of this study is how online advertisements affect
adolescent attitude in Silchar. This study tested simultaneous and partial effects of the dimension of
online advertising to adolescent online attitude as internet users in India
Advertisers are expected to shift and spend millions in internet advertising in the coming years than
TV, print ads and other traditional advertising media. Internet advertising broadly consists of various
commercial content formats delivered by video clip, print, and audio; either solicited or unsolicited
and includes company websites, corporate logos, e-mail messages, pop-ups, banner ads, skyscraper

24
ads, buttons, interstitials, hyperlinks, dynamic media, and interactive games (Ducoffe,
1996;Goldsmith and Lafferty, 2002; Korgaonkar and Wolin, 2002; Wolin and
Korganokar,2003).With the rapid growth in technology, the internet is becoming an important ones
top point for consumers in finding most of their needs. Be it communication, Entertainment,
shopping, information search, internet serves as a panacea for all their requirements. This has led
70% of the ever users to glue themselves to the Internet and access it on a regular basis. The problem
is that, volumes of consumers are online everyday for their personal work, but do they notice the ads,
banners etc. displayed on that webpage, most important what is their recall/remembrance value. What
about the reach of online advertising, is it effective across over all target groups? While a lot of
research has been done on advertising, the effectiveness of online advertising in India is a segment
that has been missing from these studies. Research done earlier mainly focused on consumer attitudes
towards online advertising in India, and showed that consumers were aware of the online adverts
though with no preference to the advertising forms. It however, failed to quantify and explain the
effectiveness of internet advertising on such consumers.

4.2. Objective of the study:

To identify the factors influencing consumers attitude towards online advertisement.


To assess the aforesaid factors relative importance in influencing purchasing behavior
To suggest measures for enhancing the effectiveness of online advertisement

4.3. Hypothesis

It is usually considered as the principal instrument in the research, it may be defined as a proposition
or a set of propositions set forth as an explanation for the occurrence of some specified group of
phenomenon either asserted merely as a provisional conjecture to guide some investigation or
accepted as highly probable in the light of established facts.

Hypothesis Tests:

1. H1a: Consumer convenience has a significant positive impact on consumer buying behavior.
2. H1b: Awareness has a significant positive impact on consumer buying behavior.
3. H1c: Creativity has a significant positive impact on consumer buying behavior.

25
4. H1d: Economic and beneficial has a significant positive impact on consumer buying behavior.
5. H1e: Value distortion has a significant negative impact on consumer buying behavior.

4.4. Research Methodology

a. Research Design
This study used descriptive research. Descriptive research involves gathering data that describe
events and then organizes, tabulates, depicts, and describes the data collection (Glass & Hopkins,
1984). It often uses visual aids such as graphs and charts to aid the reader in understanding the data
distribution and therefore offered a better clarification on online advertising, and ultimately give a
clear picture on the effectiveness and reliability of online advertising and its relationship to purchase
decision.

Population of the Study


Silchar Region

Sampling method
The sampling procedure used was convenience sampling, as in questionnaire were administered at
places like the residents, cyber center, office and colleges in Silchar region.

Sample size
A total of hundred respondents were interviewed during the survey, the input from these respondents
which was collected in Silchar region formed the primary data for the study.

b. Data Collection
The research made use of primary data, which was collected using structured questionnaire
distributed to the respondents sampled from the area of Silchar, concentrated basically on the various
colleges of Silchar. The administered questionnaires were collected after completion by the
respondents on the same day and their responses used for analysis. The questionnaire had both open
ended questions to enable guide the respondent through filling of the questionnaire as well as probe
them for more information.

Primary data

26
The primary data was generated through extensive use of a structured questionnaire, which had both
the open end and close-ended questions. They were conducted in Silchar Region and the data
collected was used for the Purpose of analysis and interpretation.

Secondary data
The secondary data was collected from the following sources:
Books & Magazines
Journals & Websites

c. Data Analysis
The study applied both nominal and ordinal scale to measure a range of factors establishing the
effectiveness of internet advertising on consumer behaviour and an interval scale in determining the
relationship between internet advertising and consumer behaviour. Descriptive statistics was used to
analyze this data. The mean responses, standard deviation and other relevant statistics were computed
to better understand the data. The data was then coded according to the responses.

Factor analysis: Factor analysis is a method for explaining the structure of data by explaining the
correlations between variables. Factor analysis summarizes data into a few dimensions by condensing
a large number of variables into a smaller set of latent variables or factors. It is commonly used in the
social sciences, market research, and other industries that use large data sets.
Regression: In statistical modeling, regression analysis is a statistical process for estimating the
relationships among variables. It includes many techniques for modeling and analyzing several
variables, when the focus is on the relationship between a dependent variable and one or
more independent variables (or 'predictors'). More specifically, regression analysis helps one
understand how the typical value of the dependent variable (or 'criterion variable') changes when any
one of the independent variables is varied, while the other independent variables are held fixed. After
the factors are extracted and 7 different factors are defined regression analysis is done with the help
of SPSS software.

27
Chapter: V
Analysis and Interpretation

This chapter comprises the following topics.

5.1. Demographics data


5.2. Factor analysis
5.3. Regression analysis
5.4. Hypothesis test results
5.5. Findings

28
5.1. Demographics data

1. Distribution of respondents on the basis of gender.

Cumulative
Frequency Percent Valid Percent Percent
Valid Female 29 23.0 23.0 23.0
Male 97 77.0 77.0 100.0
Total 126 100.0 100.0
Table 5.1: Gender

Source: Field Data


Interpretation: From the above table, the study recorded a higher response rate from males than
females. Reasons may be men use more internet in compare to women.

29
2. Distribution of the respondents on the basis of different age bracket.

Cumulative
Frequency Percent Valid Percent Percent
Valid 20-25 94 74.6 74.6 74.6
25-30 31 24.6 24.6 99.2
Above 30 1 .8 .8 100.0
Total 126 100.0 100.0
Table 5.2: Age group

Source: Field Data


Interpretation: From the above table, it is found that the age group of 20-30 has responded the most
and this is my studys target segment. The reasons can be that people of this age group are more
active in using internet and are more digitally connected.
3. Distribution of the respondents on the basis of different occupation.

Cumulative
Frequency Percent Valid Percent Percent
Valid Professional 3 2.4 2.4 2.4
Salaried 8 6.3 6.3 8.7
Student 114 90.5 90.5 99.2
Unemployed 1 .8 .8 100.0
Total 126 100.0 100.0
Table 5.3: Occupation

Source: Field Data


Interpretation: From the above table, it is found that the category of student has responded the most.
Probable reasons can be that the students are more aware about internet and internet advertisings so
here it is found majority of respondents are students.

30
4. Distribution of the respondents on the basis Educational qualification.

Cumulative
Frequency Percent Valid Percent Percent
Valid Higher Secondary 2 1.6 1.6 1.6
Ph.D 5 4.0 4.0 5.6
Post Graduate 94 74.6 74.6 80.2
Under Graduate 25 19.8 19.8 100.0
Total 126 100.0 100.0
Table 5.4: Educational qualification
Source: Field Data
Interpretation: From the above table, majority of respondents are PG qualified (i.e 80%). This might
be because most PG people are influenced by digital technology in compare to the people of other
qualifications.

5. Distribution of the respondents on the basis of how many hours they browse internet every
day.

Cumulative
Frequency Percent Valid Percent Percent
Valid 1-2 hours/day 17 13.5 13.5 13.5
2-3 hours/day 25 19.8 19.8 33.3
Less than 1 hour/day 4 3.2 3.2 36.5
More than 3 hours/day 80 63.5 63.5 100.0
Total 126 100.0 100.0
Table 5.5: Use of internet everyday

Source: Field Data


Interpretation: From the above table, majority of respondents browse internet more than 3 hours
every day (ie. 63.5%). This happened because these respondents might be to active in using internet
and they are more connected to the world through internet.

31
6. Distribution of the respondents on the basis of their responses about influence of online ads
in their online purchase.
Online ads influence in online purchase

Frequency Percent Valid Percent Cumulative Percent

1-To great extent 8 6.3 6.3 6.3


2-To some extent 63 50.0 50.0 56.3
3-To considerable extent 25 19.8 19.8 76.2
4-to little extent 19 15.1 15.1 91.3
5-Not at all 11 8.7 8.7 100.0
Total 126 100.0 100.0

Table 5.6: Online ads influence

Source: Field Data


Interpretation: From the above table, majority of respondents agreed that online ads influences their
online purchases to some extent (i.e. 50%) and only 8% respondents agreed that it influences them to
a great extent. This is because this people have reliability and trust over the online ads and online
business.
7. Preferred type of ads.

Type of Ads Frequency Percent Cumulative Percent


Pop-Ups 28 22.2 22.2
Floating Ads 10 7.9 30.8
Video Ads 70 55.56 86.36
Email Ads 18 14.3 100
Total 126 100
Table 5.7: Preferred type of Ads

Source: Field Data


Interpretation: From the above table, it is found that majority of respondents prefer video ads most
in comparison to any other type of ads. And 55.56% respondents ranked it as best type of ads.

32
Probable reasons for the high acceptance of video ads can be because they are too creative, attractive
and conveys the message properly.

8. Online ads related to product

Product Type Frequency Percent Cumulative Percent


Purchasing 44 34.9 34.9
Entertainment 24 19.0 53.9
Financial Loans 6 4.8 58.7
Jobs 40 31.8 90.5
Academics 12 9.5 100
Total 126 100
Table 5.8: Ads related to product

Source: Field Data


Interpretation: From the above table, it is found that majority of respondents prefer online ads
related to products they can purchase (i.e 34.9 %) and also most of them prefer online ads related to
jobs (i.e. 31.8%). Reasons can be that most people are concerned about jobs and looking for bright
employment opportunities. And as the age group most responded is from (20-30) and people of this
age are more concerned about job and career opportunities

9. Most visited type of sites


Type Frequency Percent Cumulative Percent
Social Sites(Facebook, twitter etc) 64 50.8 50.8
News 16 12.7 63.5
E-mail 10 7.9 71.4
Ticketing (IRCTC, yatra etc) 6 4.8 76.2
Entertainment 22 17.5 93.7
Information websites (Blogs, feeds etc) 8 6.3 100
Total 126 100
Table 5.9: Most visited sites
Source: Field Data

33
Interpretation: From the above table, it is found that majority of respondents visit Social sites most
(i.e 50.8 %) and 17.5 % respondents visits entertainment websites most. This may be because the
people of age group of (20-25) are too active in social media and they are connected to everyone
more through social media, and for entertainment purposes they visit entertainment web pages.
10. Most purchases items
Item type Frequency Percent Cumulative Percent
Apparels 72 57.14 57.14
Electronics 32 25.39 82.53
Stationeries 20 15.8 98.33
Others 2 1.58 100
Total 126 100
Table 5.10: most purchases
Source: Field Data
Interpretation: From the above table, it is found that majority of respondents purchases apparels
(57.14) online, most probable reasons can be that it has less damage risk in compare to other items
and apparels online offers huge discounts.
11. Reason for not purchasing online

Issue Frequency Percent Cumulative Percent


Safety 40 31.7 57.14
Trust 36 28.5 82.53
Privacy 41 32.5 98.33
Others 9 7.1 100
Total 126 100

Table 5.11: Reasons of not purchasing


Source: Field Data
Interpretation: From the above table, it is found that majority of respondents said they doesnt
purchase online because of safety issues (31.7%), trust issues (28.5%) and privacy issues (32.5%), the
probable reasons can be that the companies collect consumers personal data and consumers thinks
that companies can misuse those informations provided.

34
5.2.Factor analysis
By the help of SPSS software factor analysis is done,
Firstly the KMO and Bartletts test is done and found the following results, with significance of .000.
and KMO sampling value as .734 that says the sampling data is 73% adequate.

KMO and Bartlett's Test


Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .734
Bartlett's Test of Sphericity Approx. Chi-Square 2067.107
Df 351
Sig. .000

Secondly the total variance is explained and 5 components or Factors are been extracted by principal
component analysis.

Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total % of Cumulative Total % of Cumulative Total % of Cumulative

Variance % Variance % Variance %

1 8.215 30.428 30.428 8.215 30.428 30.428 4.647 17.213 17.213


2 2.700 9.999 40.427 2.700 9.999 40.427 3.620 13.408 30.621

3 2.243 8.308 48.734 2.243 8.308 48.734 3.174 11.757 42.378

4 1.901 7.040 55.774 1.901 7.040 55.774 3.118 11.549 53.926

5 1.623 6.011 61.786 1.623 6.011 61.786 2.122 7.859 61.786

6 1.164 4.310 66.096

7 1.161 4.299 70.395

8 .981 3.634 74.029

9 .878 3.252 77.281

10 .731 2.709 79.990


11 .642 2.380 82.369

12 .614 2.276 84.645

13 .541 2.004 86.649

14 .455 1.684 90.251

15 .386 1.431 91.681

35
16 .288 1.065 95.441

17 .192 .712 97.878

18 .129 .477 98.975

19 .105 .389 99.364

20 .069 .256 100.000

Extraction Method: Principal Component Analysis.

From the above table the total variance is found, that says 61% cumulative variance for sum of
squares loading, and that signifies the variability of the data.

The Scree plot is defined as following; The Scree Plot has two lines: the lower line shows the
proportion of variance for each principal component, while the upper line shows the cumulative
variance explained by the first N components.

The principal components methods, using varimax rotation, reduced the 12 explanatory variables to
five factors was composed of variables loaded 0.7 or above on that factor. In two instances, if the
variable loaded 0.7 or above on two (or more) factors, the variable would be assigned to the factor
where it had the highest loading. The five factors were:

Rotated Component Matrixa


Component
1 2 3 4 5
VAR00003 .750
VAR00002 .735

36
VAR00001 .728
VAR00004 .752
VAR00005 .727
VAR00007 .732
VAR00006 .711
VAR00008 .742
VAR00010 .739
VAR00009 .711
VAR00012 .805
VAR00011 .741
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 10 iterations.

The 5 factors are noted down as following:


1) Factor 1 : Convenience
Online ads helps in comparison of products and services
Online ads saves time for searching
Online ads helps in making decision
2) Factor 2 : Awareness
Online advertisements makes you aware
Online Ads provide information
3) Factor 3 : Value distortion
Online ads are boring
Online ads are waste of time
Online ads are irritating
4) Factor 5 : Creativity
Online ads are attractive
Online ads are good to access
5) Factor 5 : Economic and Beneficial
Online advertising promotes competition which lowers prices and ultimately
benefits the customer
Online advertising helps me to keep up to date about products services available in
the market place

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5.3.Regression Analysis:

Regression analysis is used to determine the relationships between respondents beliefs about online
advertising and their perceptions towards online advertising. The previous section was devoted to
examine respondents specific perception towards online advertising, which the results were focused
within each variable. In this section, the aim is to look at the relation between different variables.
These five predictor factors altogether explained 82.3 percent of the variance in users perception
towards online advertising.

Model Summary & ANOVA:


Model Summary
Model R R Square Adjusted R Std. Error of the Change Statistics
Square Estimate R Square Change F Change df1 df2 Sig. F Change

1 .823a .677 .663 .62810 .677 50.289 5 120 .000


a. Predictors: (Constant), Convenience, Awareness, Value distortion, Creativity ,Economy & Beneficial

ANOVAa

Model Sum of Squares df Mean Square F Sig.

Regression 99.198 5 19.840 50.289 .000b


1 Residual 47.342 120 .395
Total 146.540 125
a. Dependent Variable: influence of Online Advertisement

b. Predictors: (Constant), Convenience, Awareness, Value distortion, Creativity ,Economy & Beneficial

Following are the Coefficients derived after regression and the significance level of different factors
are determined.
Coefficientsa
Model Unstandardized Standardized T Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) 2.698 .056 48.224 .000
Convenience .795 .056 .735 14.156 .000
Awareness .286 .056 .264 5.084 .000

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Value Distortion -.170 .056 -.157 -3.028 .003
Creativity .152 .056 .140 2.707 .008
Economy and beneficial .166 .056 .153 2.950 .004
a. Dependent Variable: Influence of online advertisement

Factors having a higher belief scores predicted a higher positive perception towards online
advertising. All of the factors have positive signs and sufficient significant scores. These factors
include: Convenience, awareness, value distortion, creativity and economic and beneficial. In other
words, respondents who had positive beliefs about the value of online advertising to convenience to
consumer also have a positive perception to advertising. Similarly, if the respondents have a positive
belief that online advertising is good for awareness , creativity , economy and beneficial lead to
pleasure experience incline to have positive perceptions towards Online advertising. On the other
hand, respondents who are less likely to believe that online advertising leads to value distortion
would hold a more positive perception towards Online advertising as well.
After regression analysis is done and found the following derived equation.

Y=2.698+ .795X1 + .286X2 - .170X3 + .152X4 + .166X5


.

Y = Influence of online advertisement


X1 = Convenience
X2 = Awareness
X3 = Value distortion
X4 = Creativity
X5 = Economy and beneficial

5.4.Hypothesis Testing Results


From the above derivations following test results are found out.

Consumer convenience has a significant positive impact on consumer


1 H1a Accepted
buying behavior.
Awareness has a significant positive impact on consumer buying
2 H1b Accepted
behavior.

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Value distortion has a significant negative impact on consumer buying
3 H1c Accepted
behavior.
Creativity has a significant positive impact on consumer buying
4 H1e Accepted
behavior.
Economic and beneficial has a significant positive impact on consumer
5 H1d Accepted
buying behavior.

5.5.Findings:
a. Following my first objective To identify the factors influencing consumers attitude towards
online advertisement it is been found the most important factors that influence the consumers for
purchasing are convenience of customers, awareness, creativity of online ads, economic and
beneficial factor and value distortion .And this all have significant impact online purchasing
attitude of consumers.

b. Following the second objective To assess the found factors relative importance in influencing
purchasing behavior of adults It is been found that online ads have maximum impact on the
mindset of adults. Thus it is found that online ads are too effective for them. And also ensures a
high level of satisfaction in their purchasing behavior. Many respondents are found who says their
purchasing attitude has improved because of online ads. And they are totally satisfied with online
advertisements.

c. It has been found that most people prefer video advertisements more in compare to other ads like
banner ads, terrestrials, floating ads and pop-ups/pop-downs etc. This is because video ads are
more creative, attractive and conveys a clear picture of the message.

d. Rather than the objectives it is also found that most active respondents are males; the age groups
of 20-30 are too active in preferring online ads. And most respondents visits social media most
following the entertainment websites. Thus these platforms can be used by companies to promote
their products and services via online advertising.

e. It is also found that most respondents prefer online ads related to products like apparels, jobs and
academics. This may be because these age group (20-30) people are more interested in fashion
apparels, they are looking for career opportunities and most of them are students who prefer
academics.
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f. It is also found that if someone doesnt go for purchasing online the reasons are the safety issues,
privacy issues and trust issues. Many people think that their product and services would be not
safe on the way to delivering them. Many people also think that their private information can be
misused. And some also have lack of trust on online advertisements.

g. It is also found that maximum of people use or browse internet at an average of more than 3 hours
daily. So it is good view on the perspective of companies, they can target this consumers via
online ads.
h. Also it is found that online ads have a negative impact too. People dont like ads being popping
around all the time.

Chapter: VI
Conclusion and Limitations

This chapter comprises the following topics.

6.1. Conclusion
6.2. Recommendations
6.3. Scope for further studies
6.4. Limitations of the study

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6.1. Conclusion:

The objective of the study was to determine the effectiveness of internet advertising on consumer
behaviour using a sample of Silchar Region. After analysis of the study findings, the study concludes
that the effectiveness of internet advertising on reach and creation of awareness was determined by
the level of knowledge about the existing platforms of advertisements adopted by various companies
in India and time spent on various media. Internet advertising was effective in providing higher reach
and creation of awareness. However, in spite of the diverse usage of internet and wide interaction
with various internet advertisements, fewer respondents were able to recall the internet ads they had
seen. This implies that the reliability of internet advertising is quite low. The research established that
TV advertising is more reliable than internet advertising therefore conforming with Danaher and
Mullarkey (2003), that TV ads are much reliable than internet advertising. The study concludes that
internet advertising influenced purchase decision of the customers to a moderate extent as only nearly
half of the respondents were influenced purchase decision. However, internet advertising is a key
determinant of purchase decision of the customers as they consider it to be an interaction point
between them and the company from which they buy their products from. The study also concludes
that internet advertising has significant relationship with purchase decision of the consumers. The
study further concludes that internet advertising contributes most to the consumer behavior and that
internet advertising was a significant factor in predicting the consumer behaviour. In addition, there is
a positive relationship between consumer behaviour and internet advertising. This implies that
companies should invest more in internet advertising to increase their market share and conduct a

42
market research on the different markets in various countries to ensure that the internet advertising
initiatives being implemented suits the targeted markets to improve product purchases.

6.2. Recommendations:

The study established that the reliability of internet advertising is low and therefore recommends that
the management of companies using internet advertising should provide unique experience to its
customers based on customer analysis to deliver a personalized experience to the customers, Calisir
(2003). The study also found that internet advertising is effective in reach and creation of awareness
and recommends that the companies should invest more in internet advertising to increase their
market share and provide product information. Finally, the study determined that there is a positive
relationship between internet advertising and consumer purchase decision and further recommends
that companies should conduct a market research on the different markets in various countries to
ensure that the internet advertising initiatives being implemented suits the targeted markets to
improve product purchases. This is because there exist different contextual realities between different
markets Wolin (2002).

6.3. Scope for further studies

Since this study explored the effectiveness of internet advertising on consumer behaviour: the case of
Silchar, the study recommends that similar study should be done in big cities for comparison
purposes and to allow for generalization of findings on the effectiveness of internet advertising on
consumer behaviour. As as suggested by Gong and Maddox (2003), future research can look into the
impact of web advertising across different countries and cultures to enhance the global understanding
of web advertising effectiveness

6.5. Limitations of the study:

1. The sample size is limited to 126 internet users hence the result of the study cannot be taken as
universal.
2. Findings of the survey are based on the assumption that the respondents have given correct
information.
3. The study was conducted only in Silchar region and therefore, several Other potential samples
outside the city were neglected

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BIBLIOGRAPHY
[1] Srivastava P. 2012. A Study on Impact of Onlne Advertising on Consumer Behaviour (With
Reference to E-Mails). International Journal of Engineering and Management Sciences
Volume 3 (4): 45-55.
[2] Saeed R; Lodhi N; Naeem, A; Akbar, A; Sami, A; & Dustgeer, F. 2013. Consumers Attitude
towards Internet Advertising in Pakistan. World Applied Sciences Journal 25 (4). Idosi
Publication
[3] Schlosser, A. Shavitt, S. Kanfer, A., (1999). Surveys of Internet Users Attitudes toward
Internet Advertising. Journal of Interactive Marketing, 13(3):34-54.
[4] Wimmer, R & Dominick, J. 2010. Mass Media Research: An Introduction, 10th Edition.
Wadsworth Publishing.
[5] Belch, E, Michael A. 2003. Advertising and Promotion: An Integrated Marketing
Communications Perspective, 6th Edition. McGraw Hill.
[6] Erni M, Sri W. 2016. Effect of Online Advertising towards Online Attitude of Adolescents in
Indonesia , IJSR Vol: 13(4): 22-29.
[7] Janoschka, A, 2004 'Web Advertising' - John Benjamins Publishing.
[8] Shimp, T and Andrews, Craig J 2013 'Advertising Promotion and Other Aspects of
Integrated Marketing Communications' - Ccngage Learning.
[9] Alwitt, L. F., & Prabhakar, P. R. (1992). Functional and Belief Dimensions of Attitudes to
Television Advertising, Journal of Advertising Research, 32(5), 3042.

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[10] Andrews, J.C. (1989). The dimensionality of beliefs towards advertising in general. Journal
of Advertising.
[11]The Economic Times: Online Ad Market in India to reach rupees 1000 crore by 2015'
published on 20th February, 2012.
[12]The Economic Times: Internet Advertising Boom Next in Line' published on 29th March,
2010.
[13] Alvin, J. S, Lisa R. K, and Ernst, R. B (2002), Intermedia Substitutability and Market
Demand by National Advertisers, (20:4)
[14] Baltas, G., (2003), Determinants of Internet advertising effectiveness: An empirical
study. International Journal of Market Research, 45: 505-513.
[15] The Forbes: Why China loves the Internet' published on 18th December, 2013.

QUESTIONNAIRE

Dear Friends,

I am DIBYA JYOTI MANDAL, MBA (Final year), NIT Silchar. And i am


carrying out a project titled Effectiveness of online advertisement on adults. Online advertising
which is one of the most advance advertising techniques used by companies, agencies to promote
their product and services. I am required to do a survey on online advertisements and you can help me
by taking a few moments from your busy schedule to complete this questionnaire.

Thank you for your valuable cooperation.

Name ___________________________________________________

Gender: a) Male b) Female

Contact__________________________________________

Age Group: a) Below 20 b) 20-25 c) 25-30 d) Above 30

Educational Qualification:

a) Higher Secondary b) Under Graduate c) Post Graduate

d) PhD e) Other_________________

Occupation:

a) Student b) Professional c) Business

45
d) Salaried e) Other __________________

1) Do you use internet?

a) Yes b) No

2) In an average, how many hours do you spend browsing every day?

a) Less than 1 hr b) 1-2 hr

c) 2-3 hr d) More than 3 hr

3) Which Sites do you visit most? (Rank your choices)

Type Rank
Social Sites (Facebook, Twitter etc)
News Websites
Email
Ticketing(Irctc, yatra etc)
Entertainment websites (Youtube, voot etc)
Information sites (Feeds, blogs etc)

4) Do you Purchase online?


a. Yes b. No

5) What do you purchase?

Product type Very often Often Occassionaly Rarely Very Rarely


Apparels
Electronics
Stationaries
Others

6) What is your perception about online ads ?


Neither
Strongly Strongly
Agree Agree/Nor Disagree
Agree Disagree
Agree
Online ads helps in comparison of
products and services
Online ads saves time for searching
Online ads helps in making decision
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Online advertisements makes you aware
Online Ads provide information
Online ads are attractive
Online ads are good to access
Online advertising promotes competition
which lowers prices and ultimately
benefits the customer
Online advertising helps me to keep up to
date about products services available in
the market place
Online ads are boring
Online ads are waste of time
Online ads are irritating

7) What kind of Ads do you like to see? (Rank your choices)

Type of ads Rank


Pop-Ups
Floating Ads
Video ads
Email ads
Banner ads

8) Online ads relating to which product are you interested in (Rank your choices)

Type Rank
Purchasing
Entertainment
Financial Services
Jobs
Academics

9) Does online advertisement have any influence in your online purchase?

a) To great extent b)To some extent c) to considerable extent


d) To little extent e) not at all

10) If you never purchased online, would you prefer to purchase Online?

a) Yes b) No

11) If no, why dont you prefer to purchase online


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Neither
Strongly
Strongly Agree Agree Agree/nor Disagree
Disagree
Agree
Safety issues
Trust issues
Privacy issues
Others

12) How much online advertisement is effective for you? Rate it in 1 to 5 (1 being most effective ,
5 been least effective )
Effective 1_______2________3 ________4_______5_______ Ineffective

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