The Impact of Internet Advertising on Students Buying

Behavior

An Applied Research Presented to the faculty of the Barretto

Senior High School of Olongapo City

In Partial Fulfilment of the Requirements for the strand of

Accounting Business and Management
S.Y 2019-2020

ABM-12
Dumalasa, Eichelle Fritz
Facultad, Jenelyn
Gelaga, Grace Ann
Luna, Maria Pamela
 TABLE OF CONTENTS
Chapter I
INTRODUCTION………………………………………………………1
Background of the study………………………………………………………….3
Statement of the Problem……………………………………………………….3
Significance of the Study………………………………………………………….4
Theoretical Framework……………………………………………………………4
Conceptual Framework……………………………………………………………5
Scope and Delimitations…………………………………………………………6
Definition of Terms…………………………………………………………………6
Chapter II
REVIEW OF RELATED LITERATURE
Related Literature…………………………………………………………………7
Chapter III
RESEARCH METHODOLOGY
Research Design…………………………………………………………………...9
Research Locale……………………………………………………………………9
Respondents………………………………………………………………………..9
Research Instrument……………………………………………………………10
Data Collecting Procedure……………………………………………………11
Data Analysis Procedure………………………………………………………12
 Chapter I
INTRODUCTION
Online advertising is a marketing strategy that involves the use of the
Internet as a medium to obtain website traffic and target and deliver marketing
messages to the right customers. Online advertising is geared toward defining
markets through unique and useful applications. Since the early 1990s there has
been an exponential increase in the growth of online advertising, which has
evolved into a standard for small and large organizations. Online advertising is
also known as Internet advertising or Digital Advertising.

Consumer Behavior or the Buyer Behavior is referred to the behavior that is

displayed by the individual while they are buying, consuming or disposing any
particular product or services. These behaviors can be affected by multiple
factors. Moreover, it also involves search for a product, evaluation of product
where the consumer evaluate different features, purchase and consumption of
product. It is important for marketers to study consumer behavior. It is important
for them to know consumers as individual or groups opt for, purchase, consumer
or dispose products and services and how they share their experience to satisfy
their needs. This helps marketers to investigate and understand the way in which
consumers behave so that they can position their products to specific group of
people or targeted individuals.

In the latest decades, one of the essential problems of Companies is the

knowledge of how the consumer will respond to various things that will be used
for achieving their ultimate goal. The study of consumer behavior became a
concern for marketers, as they may learn how consumers choose their goods and
services required to meet multiple needs, which are the factors that are
influencing their choice. For this purpose Companies now attracts towards online
advertising because online advertising has grown rapidly in the last decade. The
numbers of peoples becomes very high day by day in connecting and spending
more time online. Additional devices (such as mobile phones and televisions) are
able to provide further internet connectivity. The rapid technology development
and the rise of new media and communication channels tremendously changed
the advertisement business landscape.
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However, the growing dependency on internet as the ultimate source information
and communication, make it a leading advertisement platform. The beginning of
online advertising was in 1994 when Hot Wire sold first Banner on the company's
own site, and later online advertising evolved to become a key factor in which
companies achieve fair returns for their products and services.

Since the internet is acknowledged as the powerful tool in the business

processes, many researchers have tried to reveal its impacts and influences.
Especially, the power of the internet in supporting the buying behaviour of the
customers is interesting in today business study. Buyer behaviour means the
activities that come from a person or organization on buying products or services.
The activities include mental processes beginning from desiring products/services
to making decision to buy products/services. According to Belch and Belch (2007,
p.105), they defined buyer behaviour as the process and activities which people
engage in when they want to buy products or services. These processes and
activities are composed of searching for product or service, selecting, purchasing,
using, evaluating, and disposing of products and services so as to satisfy their
needs and desires’. The good example of emerging technology is the internet that
brings a number of new opportunities into the globalization as well as the local
region. Moreover, the internet and website provide convenient services to
customers, who can manage their resource efficiently by themselves. Also, the
internet can reduce cost that businesses pay in providing service to support
customers’ need. Bitner (2001, p.376) supports that new technology, like internet,
provides a new convenient and productive way to service customer as well as an
easy way for customers to learn and get information about products/services.
Moreover, the internet will change the service processes of business from the
traditional one to the fast electronic one. This means it will certainly change
customers’ lifestyle and their attitudes about the service. The internet also plays
the role of leading and motivating customer in making a decision to buy
product/service, so understanding buyer behavior using the internet is a
necessary issue for telecom businesses that want to be successful in the global
market of this information era.

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BACKGROUND OF THE STUDY
Consumer behaviour is about a decision making by the consumer on buying,
using and disposing products, services, ideas or experiences with the use of
resources like money, effort and time.
The purpose of this study is to help entrepreneurs to discover new strategy
on how to make their business work good and succeed. The researchers need to
conduct a survey to find out the impact of Internet advertising among the Grade
11 and Grade 12 students of Barretto Senior High School and how it affect their
buying behavior.

STATEMENT OF THE PROBLEM

Specifically, this study will answer the following questions:
1. What is the demographic profile of the students in terms of :
1.1 Name (Optional)
1.2 Sex
1.3 Age
1.4 Grade Level/ strand

2. What are the factors that affect the consumers buying behavior?
2.1 The quality of the product advertised
2.2 Price of the product promoted
2.3 Persuasiveness, information and entertainment
2.4 Celebrity endorsement
2.5 Brand Image in Advertising
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SIGNIFICANCE OF THE STUDY
This study aimed to determine the impact of Internet advertising on Grade 11
and Grade 12 students of Barretto Senior High School towards their decision
making. Likewise, this study will benefit the following:

The Academe – this study will guide the students in making a research paper and
will develop their entrepreneurial skills and knowledge.
The Business Community – this will help entrepreneurs to acquire new ideas for
business development
The Future Researchers – this study will serve as a guide in their future studies
and may enhance the same thru an in depth study.

THEORETICAL FRAMEWORK
Online advertising is critical to achieving success in modern business. Research
indicates that consumers are increasingly using the internet to look up
information about people and businesses before deciding to interact or do
business with them. In fact, 97% percent of consumers search for local businesses
on the internet, according to search engine giant Google. This means you cannot
afford to ignore internet advertising, as most of your customers are online.
Buyer behaviour is an important topic because it describes the reason of why
people want to buy one kind of products/services rather than another one.
Strader and Hendrickson (1999, 2001) supported this idea and said that
companies must understand customers’ need and try to create differentiate
implications to be better than competitors in present competitive market. Buyer
behaviour also explains about the decision-making process of customers that can
be predicted as a key to success for long-term benefit in the today business. Also,
most of existing studies mainly consider only environmental factors such as
season, culture, psychological and social issues as influences of buyer behaviour.
Studying buyer behaviour in high technology like telecommunication will be
greatly useful to businesses in learning consumer behaviour especially when the
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internet is fully developed into the business process. Conceptually, the word
‘globalization’ can be explained by the development of overall global structures
such as the spreading of capitalism, uniting of trade zone and developing of global
emerging media technology.

CONCEPTUAL FRAMEWORK

1. Demographic
profile of the
respondents in
terms:
Do survey using
1.1 Name
questionnaire
1.2 Sex
1.3 Age
1.4 Grade
Analysis and
Level/Strand Determined the
Interpretation of
2. Factors affecting demographic profile of the
data
the consumers respondents and the
buying behavior impact of Internet on
2.1 Quality of the students of Barretto Senior
product High School decision
advertised making.
2.2 Price of the
product
2.3 Persuasiveness
and
entertainment
2.4 Brand Image
2.5 Celebrity

FEEDBACK
Figure 1 – IPO Paradigm

Figure 1- IPO Paradigm

 The conceptual framework will show the information how researched done.
The researcher will go further to the study. This study is helpful for entrepreneurs
and future entrepreneurs for them to have idea and strategy on how to make
their business and product popular for the business industry.
Furthermore, it will show the information how the researched done. As the
input of the study, we get the information needed to our respondents which is
Grade 11 and 12 students of Barretto Senior High School of Olongapo City. As we
get the input in the respondents we processed and analyze each question
carefully and interpret it one by one. As an outcome of the analyzing and
interpreting the data gathered, the researcher get enough information needed in
this study .

SCOPE AND DELIMITATION

This study is intended to obtain and gather responses from grade11 and 12
students of Barretto Senior High School of Olongapo City enrolled in academic
year 2019-2020 who are interested to cooperate on this study. The respondent of
the study ranges from 16 to 19 years old. Respondents of this study are 150 as
computed using Slovin’s formula.
DEFINITION OF TERMS
Academe- it is the academic environment or community, it is also known as
academia
Consumers behavior- is the study of how individual customers, groups or
organizations select, buy, use, and dispose ideas, goods, and services to satisfy
their needs and wants.
Advertisement- a notice or announcement in a public medium promoting a
product, service, or event or publicizing a job vacancy.
Entrepreneurs- a person who organizes and operates a business or businesses,
taking on greater than normal financial risks in order to do so.
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 Chapter II
REVIEW OF RELATED LITERATURE
INTRODUCTION
This chapter presents the Related Literature and Studies after the thorough
and in-depth research done by the researcher.

RELATED LITERATURE
According to Paul Herr a marketing professor and Department Head he
says that the Internet has “influenced which sources of information consumers
pay attention to, and it is probably changing the way in which consumers process
information and see the world in general.” Herr says the Internet and such
technologies as social media, mobile devices, and apps have also helped
consumer decision making by “reducing search costs and potentially increasing
the number of alternatives consumers can efficiently consider.” As for companies,
the Internet has changed how they communicate with consumers. In providing
firms with the opportunity to collect metadata concerning consumer search,
choice, and behavior, Herr says, the Internet has opened up “a window into the
consumer’s soul.” The Internet has made it hard for consumers to hide, says Herr.
“Most of our really neat technologies also reveal our identities — including
location, activities, buying behavior — to advertisers and others.”
According to Marketing professor David Brinberg says marketers today
are able not only to “capture real-time behavioral data and use it to segment
consumers based on purchase patterns, but also to target individual consumers
with specific advertisements based on his or her search behavior and purchases.”
Marketing is, after all, an effort to create targeted change, says Brinberg. It is
about “moving a consumer from not owning to owning a product, from not using
to using a service, from not performing to performing a desired behavior.”
According to article which is written by Jim Iyoob, Executive Vice President
of Global Development for Etech Global Services, customers are connected and
almost everybody is living two lives, a vibrant online life and a somewhat boring
offline one.
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 We are all connected in one platform or another through our network of friends.
We also own more than one device that keeps us updated. This means that we
thrive on being active and informed online, and Exact Target Marketing content
verified this from a study they did, whereby 91% of consumers indicated that
access to content across all devices was important. Information technology
advancements fuel the connectivity that brings together the world as one big
community, from the smart phones to super-fast data. This trend is not about to
change because now kids as young as 5 years know how to operate a smart
phone, LinkedIn even lowered its age limit to 13years to capitalize on the
technology adoption rate. Companies need to meet the consumers where they
are and satisfy their sophisticated needs. Consumer expectations have changed in
the past, as a company you set the times that you were open for business, and
customers had to put up with it or stay without that particular product.
Technology has totally changed that, with the introduction of e-commerce and
mobile phones, customers can access products at anytime. They have raised
expectations on what is acceptable customer service and what is not. As a
business, you have to keep up with the changed consumer behavior or be out of
business. Consumers now understand the power they have and will use it when
not satisfied with a service. A simple expression of their dissatisfaction on your
social media that is not responded to immediately will ignite uproar from other
customers who were OK with your products and service.

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 Chapter III
Research Methodology
RESEARCH DESIGN
The researchers used a survey questionnaire in research design because it
best served to answer the questions and the purposes of the study. The survey
research is one in which a group of people or items is studied by gathering and
breaking down information from just a couple of individuals or things considered
to be representative of the entire group. At the end of the day, only a part of the
population is studied, and findings from this are expected to be generalized to the
entire SHS Students of Barretto Senior High School of Olongapo City that
characterizes the overview evaluating general supposition or individual qualities
by the utilization of survey.

RESEARCH LOCALE
The research locale of the study is located at Barretto Senior High School of
Olongapo City. The researcher took 140 respondents who are grade 11 & 12
students of Barretto Senior High School of Olongapo City.
RESPONDENTS
The researcher elicited 140 respondents from a group of Grade 11 & 12
students of Barretto Senior High School of Olongapo City. The selected
participants answered a survey that consists several questions regarding to the
topic of this study.
Random Sampling is used in electing participants in this study. The
researcher get the total population of the Grade 11 & 12 students and use the
Slovin's formula to get the number of respondents that need to be the
respondents of the study. The respondents will answer the questionnaire based
on their capacity on each question.
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Slovin’s Formula
The population of Grade 11 and Grade 12 students of Barretto Senior High
School
N= Population size
n= Sample size
e= Margin of error
= N

1+ N (e)2

= 240

1+240(0.05)2

n=150 sample population

RESEARCH INSTRUMENT
The instrument used to conduct the research was a survey questionnaire in
the form of multiple choices which is necessity for the descriptive method. These
survey questionnaires were composed of two (2) parts: the first part is containing
the demographic profile of the respondents who in terms of name, gender,
section, and age; and the second part concentrated on the questions that were
based on the problem statement of the study. Students were free to indicate
their side, opinions, and experiences in relation to the influences and knowledge
about impact of Internet on consumers decision making specifically on the
students of Barretto Senior High School.

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DATA COLLECTION PROCEDURE
In analyzing the data that the research collected, researchers should
compile all the survey questionnaires answered by the respondents and then
tallied it. Compute for the mean and arranged their answered descending
according to how many respondents to the given question. It will be then
interpreted by doing observation and looking for the least or many chosen answer
and then make a summary of the answer in percent. And then researchers will
draw conclusion on it as a result of the study and make recommendation.

OBSESERVE TALLY
COMPILE

ANALYZE GRAPH COMPUTATION

REPORT
SUMMARY CONCLUSION
INTERPRET

Figure 2. Research Process

The study consisted of the following steps:

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1. The researchers will create questionnaires to be given to the participants of this
study. The questions are to be made and compose of questions about the
demographic profile of the participants of this study. Also it has questions about
their perspective, views and opinion about the topic discussed. Questionnaires to
be given are made up of (close ended question).
2. Questionnaires will be disseminated to the researchers equally and then
distribute it to the sample population.
3. In doing distribution the researchers should ask for the permission of the
participant if they wanted to be part of this study and if they agreed researchers
will give the constructed questionnaires and let them answer it for a while.
4 Researchers will thank the respondents for participating in doing this research
and so tell them that the result of this research will be kept confidentially and for
the research purposes only.
5 When all the questionnaires are already gathered, researchers will interpret and
analyse it.
6 Researchers will make conclusion and recommendation.

DATA ANALYSIS PROCEDURE

Completely answered questionnaires were compiled to be used for the next
step, which was the tabulation and tallying of the data. After data tabulation,
results were then interpreted. Based on the data gathered, the researchers will
properly interpreted each questions. After interpreting the data gathered the
researchers will give their conclusion on the statement of the problem they have
and will also be have their recommendations not for the respondents but also to
those people who are interested with the topic

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