EFFECTIVENESS OF INTERNET ADVERTISING ON CONSUMER BEHAVIOUR BY

EFFECTIVENESS OF INTERNET ADVERTISING ON
CONSUMER BEHAVIOUR

BY

(NAME OF STUDENT)
(REGISTRATION ID)

In partial fulfillment of the requirements for the degree of
Master of Science (Business Administration)

Under the supervision of

(Name of Supervisor)

Departme nt of Business Admin istrat
ion,

NEWPORT INSTITUTE OF COMMUN I CATI ON &
ECONOMI CS.

Karachi, (Year of Completing Degree)

ii

In the Name of ALLAH,
The Compassionate,
The Merciful

iii

DEDICATED

I dedicate my work to my PARENTS, Teachers and Friends.

iv

ACKNOWLEDGMENT

All gratitude and thanks to Allah Almighty, kind, merciful and caring that gave me the courage to do the
homework and complete it. I am very obligated to take care of the parents and to love those who managed to pray
to reach this stage.

I am grateful to the great God who made me capable of completing the work presented in this report. It is because
of his infinite mercy that this action has moved towards success.

I am very great full to my supervisor (SUPERVISOR NAME) NEWPORT UNIVERSITY,KARACHI for
providing me guideline for the completion of this thesis report.

v

TABLE OF CONTENTS
DEDICATION ……………………………………………………………………………………………………………………………………… v
ACKNOWLEDGEMENT …………………………………………………………………………………………………………………….. v

CHAPTER 1: INTRODUCTION AND BACKGROUND ……………………………………………………………………. 01
1.1 The Concept of Promotion ………………………………………………………………………………………………. 01
1.2 Internet Advertisement …………………………………………………………………………………………………… 02
1.3 Research Problems …………………………………………………………………………………………………………. 03
1.4 Research Objective ………………………………………………………………………………………………………… 03
1.5 Value of the Study …………………………………………………………………………………………………………. 04

CHAPTER 2: REVIEW OF LITERATURE ………………………………………………………………………………………. 05
2.1 Introduction …………………………………………………………………………………………………………………… 05
2.2 Theoretical Foundation of the Study ………………………………………………………………………………… 05
2.3 Advertisement and Internet ……………………………………………………………………………………………… 05
2.4 Integrated Marketing Communication ………………………………………………………………………………. 06
2.5 Effectiveness of Internet Advertisement …………………………………………………………………………… 07
2.6 Consumer Behaviour ……………………………………………………………………………………………………… 07
2.7 Internet Advertisement and Consumer Behaviour …………………………………………………………….. 07

CHAPTER 3: RESEARCH METHODOLOGY ………………………………………………………………………………….. 09
3.1 Introduction …………………………………………………………………………………………………………………… 09
3.2 Research Design ……………………………………………………………………………………………………………. 09
3.3 Population of Study ……………………………………………………………………………………………………….. 09
3.4 Sample Design ………………………………………………………………………………………………………………. 09
3.5 Data Collection ……………………………………………………………………………………………………………… 10
3.6 Validity and Reliablity ……………………………………………………………………………………………………. 10
3.7 Data Analysis ………………………………………………………………………………………………………………… 10

CHAPTER 4: ANALYSIS, RESULTS AND DISCUSSION OF DATA ………………………………………………… 11
4.1 Introduction …………………………………………………………………………………………………………………… 11
4.2 Daily Time Spent on Internet(hours) ………………………………………………………………………………… 11
4.3 Consumer Response to Online Advertisement …………………………………………………………………… 12
4.4 The Influence of Online Advertisement on Consumer Behaviour Concerning Consuming and
Buying ………………………………………………………………………………………………………………………………………………. 15
4.5 Purchasing Tendency of Consumers After Seeing Internet Ads. ………………………………………… 16
4.6 Consumer Response on Advertisement on Beign Informative about the Product, Goods and
Services ……………………………………………………………………………………………………………………………………………… 16
4.7 Consumer Concern’s about Internet Ads on beign responsible for Leading Consumers to buy
unnecessary Products …………………………………………………. ………………………………………………………17

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4.8 Advertisement viewed for more time by consumers results in buying the products ………………… 18
4.9 What Consumers looks for Internet Ads. ………………………………………………………………………….. 19
4.10 Discussion And Findings. ……………………………………………………………………………………………….. 21

CHAPTER 5: CONCLUSION AND SUGGESTION …………………………………………………………………………… 23
5.1 Introduction …………………………………………………………………………………………………………………… 23
5.2 Summary ………………………………………………………………………………………………………………………. 23
5.3 Conclusion ……………………………………………………………………………………………………………………. 23
5.4 Suggestion…………………………………………………………………………………………………………………….. 24
5.5 Recommendation for additional Plans ……………………………………………………………………………… 24

REFERENCES …………………………………………………………………………………………………………………………………. 25
QUESTIONAIRE ……………………………………………………………………………………………………………………………… 26

vii

LIST OF TABLES
Table
No. Tittle Page No.
1 Daily Time spent on Internet (hours) 11
2 Ranges of Responses and No. of Respondents 14
3 The Influence of Online Advertisement on Consumer Behaviour
Concerning Consuming and Buying 15
4 Consumer Response on Advertisement on Beign Informative about
the Product, Goods and Services 16
5 Consumer Concern’s about Internet Ads on beign responsible for
Leading Consumers to buy unnecessary Products 17
6 Advertisement viewed for more time by consumers results in buying
the products 18
7 What Consumers looks for Internet Ads 19

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LIST OF FIGURES
Table
No. Tittle Page
No.
1 Percentage and Frequency of Consumer Internet Ads. 12
2 Population Distribution in percentage bases on their liking &
disliking of internet Ads. 13
3 Like to view ads on various electronic devices such as mobile, laptop
and others 13
4 Consumer response about how they find online ads. 14
5 Percentage of consumers who are influence by internet ads. 15
6 Percentage of respondents who have bought or deny to have product
after seeing internet ads. 16
7 Are Internet ads informative about the product, services and good that
are advertised 17
8 Percentage of consumers’ response to internet leading them to buy
unnecessary products 18
9
Percentage of consumers on the basis of their response about
advertisement viewed for more time as impacting them to buy the
product
19
10 Consumers look in internet ads 20
11 What do consumers look in an internet advertisement 21

1

CHAPTER ONE
INTRODUCTION AND BACKGROUND OF RESEARCH

Twenty first century has witnessed an increasing tendency of large population towards internet. It has multifaceted
dimensions ranging from its implications on contemporary marketplace to its implications in terms of social
interactions. Internet has been widely accepted in all domains due to its unique quality of adaptability, flexibility,
personalization and interactivity. It has also impacted all modes of communication, electronic exchange and
entertainment. Nonetheless, this progressive change delivered by this innovative technology has significantly
impacted daily social life. Additionally, internet has transformed businesses on global scale that has resulted into
transformation in business relationships between companies, retailer and consumer. Retailer has more services
and products to offer its consumer on global scale.

Furthermore, internet is used widely for all sort of advertisement. All big businesses have turned their attention
towards internet and employed the fundamental techniques of advertisement. In this regards, internet serves as
an advertisement tool to get more attention from more people all over the world. Thriving businesses have
sought to invest high sums of money into internet advertisement in order to gain profit on promotion. Since
internet knows no boundaries, internet- advertisement is more proficient than other tools of advertisement. In
short, internet has changed traditional techniques of advertisement throughout the globe.

Internet has provided more control not only to the producers but also to the consumer over services and
product’s information. In contemporary times, consumer has more choice to decide from numerous services and
products available on the internet from all around the world. It doesn’t take time, as happened in old days
when shopping actually needed costumer to come a long way.

Consumer play a significant role in looking for online data available to facilitate the person to materialize his
prospects in mind. These goals or prospects which a consumer seeks on the internet actually gives an insight
into what influences his/her reaction to internet advertisement. Those advertisements which continuously pop
up unnecessarily are aptly to be received unwelcomingly on the part of consumer.

Internet provides a platform for advertisement because it finds internet more flexible tool available in
contemporary cyber era. Contrary to traditional methods of advertisement, internet advertisement has prospered
more sporadically as it has more influence locally as well globally. Following these lines of arguments, present
study is an endeavour to examine the effectiveness of internet-advertisement. Students of NEWPORT
UNIVERSITY campus were considered for sample population in order to determine the connection among
consumer behaviour and advertising.

1.1 The concept of Promotion

Promotion is an organization’s framework for marketing its services, products and brand through any form of
communication. It is done in order to highlight multiple advantages for the sole purpose to target the
potential clients. Promotion strategies differ from company to company and area to area. But in contemporary
times, when people have access to internet everywhere, promotion strategies for most companies interrelate
to one another. The main objective of promotion has remained to reach maximum potential clients through

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providing awareness about the brand or product. Additionally, promotion is employed by advertisement
companies with the objective to gain market share, build loyalty of the customer and most importantly
grow the sales.

To achieve its time objectives, an organization need to build an effective strategy for promoting goods and
services. One strategy is never enough for encompassing vast market space but a combination of different
strategies is needed including: sale promotion, personal sales, advertisement, public relation and direct
marketing or door to door marketing. These goals are achieved through allocating cost effective resources. In
multimillion business firms, marketing offices are required to play many important parts; it is required to
setup marketing budget, determine promotion-mix, allocate cost effective resources, supervise outdoor activities,
measure the outcome and most importantly coordinate whole advertisement campaign.

Advertisement is mostly consumer oriented and so, it puts him alongside distributor and manufacturer.
Factory manufacturers are concerned with promoting their products to the retailers who offer items to the
customer. It is up to the manufacturer whether or not it want to put personal sale purchase or
promotional-mix in advertisement into effect. Advertisement is advanced by companies to influence
potential audience to buy services or products offered by that company. This profit oriented
communication is normally achieved through a communication tools which operate through any
medium: online advertisement, web-based social media, billboards, TV, print media and Radio.
Advertisement are out where advertiser believes that they will reach to the largest most relevant audience.

1.2 Internet Advertisement

Internet advertisement has evolved with increasing internet usage in all parts of the world. It is comprehended in
terms of promotion which utilizes internet as a tool to communicate with a specific purpose to achieve:
to create awareness among the consumers to achieve maximum profit. Online advertisement includes ads
on different pages that are recognized by search engines. Rich media, social networking ads, banners and
pop up ads are various kinds of e- marketing. Online marketing, e-marketing and cyber advertisement are
interrelated terms which are used synonymously to depict one sort of advertisement that is internet
marketing. These online directories influence other forms of advertisements i.e. TV advertisement that influences
viewers’ tendency to watch a specific kind of commercial. In case, the advertiser provides option that customers
can respond to its advertisement then it allows customer to reach the advertiser through email, phone, website and
messages. The responses from the customers are often quick and advertisers normally materialize these responses
through continuous follow backs using the same methods of communication used by potential customer.

Consumer can get information about services and products by talking to various consumer of the same product
and company for relevant services and products. Online advertisement is most successful form of
advertisement as the customer has already chosen the platform (internet) on which advertiser is promoting the
brand’s items. It is also proficient in providing an experiential situation to buyer through a virtual reality and
thus, enabling the consumer to get information before buying the advertised items. Consumers’ feedback is a
significantly evolving technique that is helpful for other customers as well as the company to make
necessary changes to the products insofar as marketing is always customer oriented. In this regards, positive
feedbacks are responsible for a successful promotion. It enables a marketer to control negative feedbacks after
taking care of its customer’s concerns by making changes and showing organization’s
commitment to gain their trust.

3

1.3 Research Problems

Contrary to other methods of advertisement, Advertiser is required to spend huge amount on marketing
if the advertiser wants to get better results from internet-advertisement. The reason for this expensive sort of online
marketing is that it requires more content ranging from sound clips, video clips, online friendly content, pop-ups,
banner advertisements and interactive games.

In recent years, technology has advanced manifold and more swiftly than ever before. In this background
of advancement in technology, internet has played an important part. Internet has helped modern consumer
to look for multiple items available on thousands of different websites. Ecommerce websites have provided
plateform to small as well as huge business to present their products on the websites and consumers can buy them
online without bothering about going out and buying stuff for themselves in the market. Internet has given
rise to virtual marketplace where people come online and search for their relevant products on multiple
websites. After choosing most appropriate and desired product, the customer pays online and gets the product at
home. Who can deny such a proficiency of purchasing a product online? According to their findings, 70%
people use internet all the time worldwide. This increasing number of online users is not solely for the purpose to
buy products. They are after serious work to do after internet has ushered a new era of communication for multiple
purposes. So, the concern of this study is whether or not internet users are interested in online advertisements
which are presented to them in form of banners, promotions, pop-ups etc. Most important concern of this
study is to determine the resemblance value of these behaviours. Moreover, it is significant to look into
online advertisement and to comprehend how did it effectively it operated among all target groups. What
about the online advertisement is it effective over all target groups?

There is enormous research done in the domain of internet advertisement in order to comprehend its effectiveness
on global population who has significantly involved itself with internet. In this respect, Wanjoga (2002)
examined the consumer behavior as being molded by internet advertisement in Nairobi. The research showed that
purchasers knew about the online advert but they were unable to comprehend and to measure the success effects
of internet advertisement on vast majority of customers. Gong (2003) suggested, “future researcher can look into
the impact of web advertising across different countries and culture to enhance the global understanding of
web advertising effectiveness”

Present study is conducted in order to fill above mentioned gaps in academic research while determining
the effectiveness and impact factor of internet advert on the behavior of consumer- who has always remained the
fundamental concern of advertisement.

1.4 Research Objectives

This is conducted with some necessary objective; that is to:

o Establish the claim that internet advertisement is a reliable method of advertisement.

o Determine the relationship among buyer’s behaviour and decision that is taken in

4

order to purchase the advertised product

o Determine the value of internet advertisement as being effective and creative as it creates awareness on
global scale.

1.5 Value of the Study

This research provides benefits to business, government marketers and academic researchers who pursue
this domain of research: impact of internet advertisement on the behaviour of the customer. Present study can
acquire the ability to guide marketer regarding inclinations of consumer towards buying things. All this
being successfully advertised through internet which has remained concerned with potential buyers among the
herd of people who have no interest in the product.

It is basic to understand the attitude of the online customer to Internet advertisement before adapting the
practise of internet marketing. This is uncovered by this study. In this background of arguments, internet has
remained a significant toll of advertising which is always receiving audience across the globe and provides
opportunity of all day long interactivity between consumer and the advertiser of the product. This seems
important for local marketing companies to turn towards internet marketing as it has the capacity to regulate all
business. This is true, at least, in contemporary era where people can buy a product from anywhere and receive it
at home for free without spending any time. This study understands the value of internet as a tool of
promotion and advertisement the same way it impacted commerce and trade in recent times.

For academic and scholars, the current study constructs the foundations whereupon further research might
be dome in this domain. Furture researchers, advertisers and consumers can find an ample material from this
study which is aimed at analysing the impacts of internet advertisement on the behavioural tendencies of
people which lead them buy and consumer commercial products.

5

CHAPTER TWO
LITERATURE REVIEW

2.1 Introduction

This chapter is dedicate to give, a clear understanding of Internet advertising concept and effectiveness
of internet advertising.

2.2 Theoretical Foundation of the Study

Effectiveness of the advertising and promoting a product along with the impacts of advertising on consumers’
behavioural tendencies provide theoretical foundations for this particular study. There are ample researchers in
psychology of emotions in relation to advertising techniques which evoked feelings may impact on customer’s
behaviour to advertisements that are displayed on various webpages, popups and search engines.
Researchers had experienced that advertisement puts both negative and positive feelings when the aim
is convince potential customer. The research of Inman, Brown, and Homer recommend pragmatically that
“the strength of positive and negative feeling impacts could guide advertiser decision regarding executional
strategies.”

The researchers have recommended that advertiser utilizes the positive effect of advertisement in order to create
its impact on consumer to like the advertisement and after that make the purchases while negative effect
evoke an uncomfortable situation that consumer wants the “solution” from the advertiser. In is unfortunate
that there isn’t any assurance about the consumer experience which could give help determine the
effectiveness of advertisement presented to customers. Present study exposes that such a mismatch between
advertiser’s intention and consumer response happen very repeatedly in academic research.

2.3 Advertisement and Internet

From the inception of internet and after it was globally accepted as a changing tool for increasing facilities which
the modern technology is referred to accomplish. Internet has changes all domains of knowledge and traditional
techniques including advertisement. Meeker (1998) define that internet is a tool of mass communication from
individuals from a communicating medium to big audience in market. The internet provides an alternative to
interaction which is mostly occurring on applications, social media websites, emails, search engines and
webpages.

Benefit for advertiser would be an opportunity in order to interconnect with customers insofar as the whole process
is operated on the internet. It would also enable advertiser to run marketing company of their product and
services in targeted manner and personalize to attain their objective. Importantly, surplus of marketing
and advertising funds repeatedly noticed while projecting mass promotional messages to customers in the
wake of global internet usage. Keeping this change in view, the aim of the advertiser should be to adopt

6

techniques full of novelty and ought to readdress traditional methods of advertisement; thus online advertisement
ought to be considered by advertisers and develop strategies to capture more customers.

Wolin and Korgaonkar (2002) explored that there exists a relationship among light and heavy web clients; and
that these heavy clients are more inclined to watch internet advertisements. The study suggests that capturing the
heavy clients and promoting products online would augment the sales. The comparison between internet and
lighter clients, online advertisements are significant, helpful, supportive, entertaining and informative. On the
other hand, the researchers argued that online advertisement is much valuable and equally difficult to comprehend
due to complex issues get involve as people tend to change with time, age, geography, race, creed and nation to
nation. Additionally, Ducoffe (1996) suggested that online advertisement and promotional marketing
activities are informative, helpful and essential.

2.4 Integrated Marketing Communication

Internet is central to all changes that have taken place in marketing and advertisement trends. The internet
has contributed more in integrated marketing communication techniques, by enabling marketer to
communicate more specifically with individual consumer. The utilization of the IMC concept includes the
progression away from the traditional marketing communication model for mass media for one-to one
communication, or many to many communication model.

The presence of Internet in the promotional mix will not kill the utilization of mass media advertising
channels for example radio, daily papers and magazines. However the Internet may decrease the requirement of
mass media advertising. This will happen because the personal Computer with Internet access being used
frequently by target audience as an effective communication channel to make both social exchange utilizing
email and commercial exchange to purchase 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 internet.

Internet impacts the relationship between consumer and business. This impact creates new dynamics of
communication which go along consumer to business. Internet advertisement, in this respect, has produced
new communication forms between advertiser and consumer. Contrary to traditional forms of advertisement,
internet advertisement gives more information to consumer in very short time. Internet ads shown for more time
to the consumer also lead him to buy the product. The influence of internet marketing is very significant as
compared to other forms of advertisement.

Watson, Pitt and Berthon explained that with the inception of online advertisement facilitates the advertiser to
come into interaction with its consumers by providing excessive amount of details about the products. The
researchers further argued that internet advertisement gives consumers enough control as they can find product
details, product price, customers reviews etc. given by internet ads. So, the interaction between consumer and
advertiser is now more dynamic due to internet advertisements.

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2.5 Effectiveness of Internet Advertising

There are numerous researches that have took into account the significant effectiveness of online ads. There are
numerous factors involved in it: user spending time on internet and how they respond to internet
advertisement if it gets their attention. Mullarkey and Danaher endeavoured to provide insight into impacts of
internet with reference to time duration. The researchers have argued that internet has effectively influenced the
behaviour of consumers to buy the product if they spend time viewing the advertisement.

Hussherr and Dreze argued that advertisement characteristics are majorly the reason for getting consumer to
actually go and buy the product which is displayed by advertiser. The researchers argued that repetition is major
factor for getting consumers to consider the ad and buy the product. So, it concludes that information
displayed to the consumer has significant impact than any other factor as it brings attention of consumer
towards product details. Moreover, the researchers have found that advertisement clicks are pivotal to draw
potential consumers towards the original site thus the chances are great that consumers will probably get along
with buying the product.

Lafferty, Goldsmith and Mehta have contended that consumers, if they like the advertisement displayed to
them, will recall or buy the product while those ads which fail to get the attention or liking of consumer will not
lead him/her to buy the advertised product.

2.6 Consumer Behaviour

The concern of consumer behaviour is to examine the behaviour of consumers (groups, individuals and
organizations etc.) while taking decision about selecting, buying, securing and using services and products in
order to fulfil desire. This articulation of consumer behaviour shows that the relationship of consumer to
the product has been created much earlier than purchase of services or product. The procedural initiation
of purchasing and consuming takes start in consumers’ thoughts thus leading to categorize the services or
products based on their advantages and to buy the product according to the decision.

The behavioural study of consumer is very important for analysing the tendency of consumer to whom online
advertisement is displayed. Wide range of consumer choice, provided by online advertisement, bring forth
new arenas for advertisement. With the help of internet ads, consumer interact with advertiser, give feedback
and provides details for advertiser to make necessary changes.

2.7 Internet Advertising and Consumer Behaviour

With the inception of internet and its control over new forms of communication has provided advertisement
new arenas for displaying and promoting the ads. Along with other factors involved in a successful
advertisement campaign on internet, psychological factors are more vital. So, advertisers are concerned to
know emotions, feelings, sensation and thinking so that it could utilize those advertisement techniques that are in
accordance with consumer behaviour. Advertisement firms and producer companies are aimed at strengthening
the interaction which is created due to internet advertisement. Those companies fail to prosper if they don’t

8

consider consumer oriented approach; or don’t interact with their consumers; or don’t make necessary
changes suggested by consumer reviews.

Online ads offer dynamic functions for their consumers as shown in the research of Suh K. and Yoo and Lee M.
The researchers have argued that consumer behaviour is impacted more when advertiser comes into interaction
with the consumer and takes the feedback given by consumer. This gains consumers’ trust in the product and
thus leading him to take firm decision about buying more products through the same company. If the consumer
is happy with the product then there are chances that the relationship would long last and every time new product
is displayed by the same company, the consumers would buy it without fear of distrust in advertisement. The
information that is provided by internet is related to the fact whether or not consumer approves it. If consumer
approves the information about advertised services or products then there are chances that consumer would
decide to buy the product.

At the point when customer measure the amount of benefits, he/she is attached with advertising and promotion
and get emotionally attached to it. Most of the consumers are attached to advertisements because they identify
beneficial aspects in the product advertised as enhancing joy. Internet advertisements do not produce same
impacts on the consumers. Half consumer population is annoyed to see advertisements as being unnecessary and
waste of their time. Some of the consumers’ responses to internet advertisements are centred in the view
that it is responsible for leading them to buy unnecessary products. Though these reaction are not rational yet
they are important to note these overt reactions to online advertisements. It also gives ideas to advertisers to
consider these responses for introducing innovative techniques to get consumer attention towards ads and
trustfully lead the consumer to buy the product and feel satisfied afterwards. If consumer posts some
concerns about the product, the advertiser must interact and solve the issues addressed by customer reviews.

Furthermore, the repeated visualization of internet ads brings consumer to take decision for buying a
product. Ads shown for more time are considered to get more attention from viewers and remind the consumer
about product until one tends to buy it. Ads ought to be attention getter for materializing consumers’ conscious
thinking which is responsible for producing certain consumer behaviours.

Cannon-Bard theory argues that it is innate human tendency to get an emotional attachment with something before
they act upon it. So, in this regard if consumer gets emotionally attached to the product then it would be
beneficial for advertisement campaign to get more consumer to the actual product. On the contrary, if
consumer feels that internet advertisement are not beneficial and that they lead them to unnecessary online
shopping then it would negatively impact consumer behaviour.

In the light of above discussion, it is evident that internet is an important tool for advertisement and internet has
produces new arenas for advertisement. Additionally, internet advertisement produce a new set of
communicational relationship between consumer and advertiser. The consumer behaviour is also a significant
factor for deciding the success of an internet advertisement campaign. Furthermore, those internet ads which
bring positive behavioural tendency of consumers are favourable for the product purchase and if it produces
negative psychological impacts on consumer then internet advertisement would not successfully
accomplish its goals.

9

CHAPTER THREE
RESEARCH METHODOLOGY

3.1 Introduction

This portion of my study is dedicated to provide an all-inclusive research methodology which is employed to
conduct whole research. This chapter is dedicated to give detailed articulation of descriptions and approaches
involved in the main concern of this study that is to understand consumer behaviour as it is continuously
impacted by online advertisements. Moreover, research instruments, research design, population target,
information gathering and most importantly methods employed in this study for analysis of the data collected.

3.2 Research Design

Present study is a descriptive research that includes collecting information which is to: define the eventful
happening after that to organize data; to define it, arrange it and describe the information collected in
descriptive manner. Sometimes, graphs, diagrams and charts are presented in this study in order to provide a
short sketch of data collected. It is helpful for the reader to comprehend the issue in hand completely
and without any vagueness. Most importantly, descriptive research is also significant for representing the
real conditions in which information is distributed through internet. In this regards, this research employed
description research apparatus to unveil the impacts of online advertisement of consumer behaviour.

3.3 Population of the Study

This research target students of the Newport Institute of Communication ; Economics NICE on account of their
experience and large percentage using the internet. Student of the NICE have access to internet through
wireless connection there for accessing online advertising through social media is quite easy for them. Only
50 student of NICE campus were chosen for this research.

3.4 Sample Design

This dissertation employs stratified sampling techniques in order to choose units for the research. Stratified
sampling technique is carried on by dividing population sample (50 respondents) based on their views and
inclinations about internet advertisement as impacting their behaviour as a consumer. This study takes up
the claim that stratified technique is vital as it doesn’t only provide the benefits of concentrating upon
significant subpopulations while permitting the utilization of various samples and for various sub populations
while enhancing the accuracy.

10

3.5 Data Collection

Present study has utilized primary data that was gathered utilizing of structure questionnaire. Utilizing
this technique, a population sample of 50 students were taken as respondents for campus of NEWPORT
UNIVERSITY while they were roaming in the campus. Furthermore, the questionnaire had open-ended inquires
for guiding the respondents while they were filling it.

3.6 Validity and Reliability

It has always remained a classical tradition of among researchers to look at the validity and reliability
of the content presented in a research. So, this study inclined to offer validity of this research by sharing
knowledge regarding internet ads and the way a person as a consumer reacts to it. Every student finished given
survey questionnaire in the presence of the researcher and no questionnaire was filled with researcher’s presence.

3.7 Data Analysis

Present research is carried on to measure the range of elements that are pivotal to the establishment of
effects of online advertisement upon the behaviours of clients. This research also determines the connection
between consumer behaviour as being impacted and transformed or changes and internet as being the cause of
this impact. The measurement of responses were taken as determinant of respondents (consumer) emotional
tendency to react towards specific internet ads while some are annoyed by continuously showing up online
ads. The population is devided based on their responses to questions given to them for analysing online
advertisement and its impacts on consumers behaviour or how consumers responds to internet ads as it impacts
their purchasing behaviour. Frequency distribution and percentage of population sample is are employed in this
study to comprehend information collected from the questionnaire for determining their behavioural tendency
towards online ads. The information gathered from the questionnaire is put into tables and expressed through
charts and graphs. Then it was analysed in descriptive manner to make it understandable for wider audience.

Now turning to the question of reliability, this study guarantees that this research is reliable while keeping in
view that ‘reliability can be guaranteed by limiting sources of measurement. The collected information,
through questionnaire, is supervised solely by the research who alone can assert the reliability of the research.
Experimental testing was accomplished by specialist to recognize any flaws in the survey questionnaire for the
sole purpose to reduce mistake mistakes of measurement and test for consistency.

11

CHAPTER FOUR
ANALYSIS, RESULTS AND DISCUSSION OF DATA

4.1 Introduction

The data was collected from 50 respondents from main campus of NCBA & E who are currently
studying there. I collected the data after the questionnaires were filled by the respondents (consumers).
The data collected from the questionnaires was put manually into the excel sheet for further analysis, results and
discussions. The data for each question is presented in tables, graphs and pi-charts for comprehending
the effectiveness of internet advertisement on consumer behaviour.

4.2 Daily time Spent on Internet (hours)

The respondents were asked about how much time they spend on the internet to know how much impact an
internet advertisement has on consumers. The time spent by the consumers.
Table 1

No. of hours Frequency Percentage
1 hr. 5 10%
1 to 2 hrs. 6 12%
2 to 4 hrs. 12 24%
4 to 5 hrs. 12 24%
Above 5 hrs. 15 30%
Grand Total 50 100%

According to Table 1, most students use internet for more than five hours. The highest 15 respondents of total
population are using internet more than five hours while 12 consumers use internet for 4 to 5 hours, same number
use internet for 2 to 4 hours, 6 consumers spend 1 to 2 hours and the lowest 5 consumers spend an hour or less
on internet.

12

Figure 1

Figure 1 shows the percentage and frequency of internet usage time. The lowest, 10% consumers are
using internet for 1 hour while maximum 30% of the total population use internet for more than 5 hours.

4.3 Consumer responses to online advertisements

Consumers were asked if they pay attention to online advertisement while using internet or whether they like it
or not? Mixed responses came from the respondents expressed in figure.
Figure 2

56
1212
15
10%12%24%24%30%0
2
4
6
8
10
12
14
16
1 hr.1 to 2 hrs.2 to 4 hrs.4 to 5 hrs.Above 5 hrs.
Percentage and Frequency of consumer internet
usage
Series 1Series 2Column1
34%
66%
Population distribution in percentage based on their liking and disliking of internet
ads
Pay attentation to internet adsNot Pay attentation to internet ads

13

According to the above figure 2, 66% respondents responded that they do not pay attention to internet ads while
34% agreed that they pay attention to the ads.

The figure below shows the how many people like to see internet ads and how many dislike it.

Figure 3

According to figure 3, 52% respondents disliked to view advertisement on electronic devices such as
mobile, TV and laptop etc. while 48% like to watch advertisement on these devices.

Table 2 will show consumer’s viewpoint on how they find internet ads.

Table 2

Range of Response No of Respondent %age
Creative awereness 13 26%
Informative 12 24%
Irritating 12 24%
Waste of time 13 26%
Grand Total 50 100%

According to the table 2, comparatively equal share of responses came from consumers: 13 responded
that internet is important for spreading creative awareness, 12 confirmed that internet is informative for them,
while 12 respondents found internet ads as irritating and 13 responded that it is waste of their time to consider
internet ads.

Figure 4 represents the percentage share of total population confirming their mixed responses to internet ads.

48%52%
Like to view ads on various electronic devices such as mobile, laptop or others
Like internet adsdislike internet ads

14

Figure 4

According to figure 4 displayed above, almost equal percentile of population finds the advertisement
as 26% consumers find advertisements as informative, 24% find them creating awareness, 24% are of the
view that advertisement are irritating for them while other 26% thinks it is waste of one’s time to consider these
advertisements.

4.4 The Influence of online advertisement on consumer behaviour concerning
consuming and buying

The influence of online advertisement is assessed based on table 3 displayed below:

Table 3
Response Frequency %age
Large Influence 15 30%
Medium 18 36%
Extremely Low 17 34%
Grand Total 50 100%

According to table 3, internet advertisement has relatively medium and large influence: 15 consumers
are highly influenced, by internet advertisement, on their behaviour that leads them to buy and consumer the
advertised product. 18 Consumers have medium influence while 17 have extremely low influence on their
buying and selling behaviour.

24%
26%24%
26%
CONSUMERS’ RESPONSES ABOUT HOW THEY FIND ONLINE
ADVERTISEMENTS
Creates awerenessInformativeIrritatingWaste of time

15

Figure 5

Figure 5 displays that 30% consumers are highly impacted by online ads concerning their buying and selling
behaviour, while 34% consumers are moderately influenced and 36% are extremely less influenced.

4.5 Purchasing Tendency of consumers after seeing internet ads
The respondents were asked if they had bought a product after seeing internet ads in order to comprehend the
influence of internet ads on consumer behaviour to buy the product.

Figure 6
perchantage of consumers who are influenced by
internet advertisement
Large InfluenceMediumExtremely Low
54%
46%
PERCENTAGE OF RESPONDENTS WHO HAVE BOUGHT OR DENY
TO HAVE PRODUCT AFTER SEEING INTERNET ADS
Respondent who bought the product agter seeing internet ads
Respondents who deny to have bought the product after seeing internet ads

16

According to figure 6, 54% of consumers agreed that they have bought products after seeing ads on the internet
while 46% have not purchased the product after seeing internet ads.

4.6 Consumers’ response on advertisement as being informative about the
product, goods and services

The respondents were asked whether they agree with the statement that internet ads give information
about services, goods and products or not. The data is displayed in table 4.

Table 4
Consumer Response Frequency distribution %age
Agree 28 56%
Disagree 14 28%
Not sure 18 16%
Total 50 100%

According to the table 4, the highest number of consumers have found internet ads as being informative
about the product, goods and services, while 14 respondents said internet ads are not informative and 8
respondents were not sure about it.
Figure 7

According to figure 7, highest percentage 56% respondents find internet ads as informative while
28% don’t agree and 16% are not sure about it.

56%28%
16%
ARE INTERNET ADS INFORMATIVE ABOUT THE PRODUCT,
SERVICESAND GOODS THAT ARE ADVERTIZED
AgreeDisagreeNot sure

17

4.7 Consumers’ concerns about internet ads as being responsible for leading
consumer to buy unnecessary products

Table 6 shows frequency distribution of total population based on their responses about internet leading
consumers to buy unnecessary products:

Table 5

Consumers’ concerns about internet ads as being responsible for leading consumer to buy
unnecessary products
Agree 17 34%
Disagree 18 16%
Not sure 25 50%

Table 5 shows that 17 respondents agree that they are lead by internet ads to buy unnecessary products, while 8
respondents disagree with it and 25 are not sure about it.

Figure 8

According to figure 8, half of the population sample was not sure whether internet ads are responsible
for leading consumer to buy unnecessary products, while 34% strongly believed it true while minimum 16%
consumers disagreed with it.

34%
16%
50%
PERCENTAGE OF CONSUMERS’ RESPONSE TO INTERNET
LEADINGTHEM TO BUY UNNECESSARY PRODUCTS
AgreeDisagreeNot sure

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4.8 Advertisement viewed for more time by consumer results in buying the product

The respondents were asked if internet ads are view for more time by the consumer then will it influence him/her
to go and buy the product. The responses to are shown in table 7 below:

Table 6
Responses Frequency %age
Agree 23 46%
Disagree 09 18%
Not sure 18 36%
Grand Total 50 100%

According to table 7, most of the respondents 23 agreed that if an advertisement is viewed for more time then it
definitely leads them to purchase the product, while 9 respondents disagreed and 18 remained unsure.

Figure 9

According to figure 9, 46% consumers agreed with the view that internet advertisements which are displayed for
more time lead the consumer to buy the product, while lowest 18% respondents disagreed and 36% were not sure
about it.

46%
18%
36%
PERCENTAGE OF CONSUMERS ON THE BASIS OF THEIR
RESPONSEABOUT ADVERTISEMENT VIEWED FOR MORE TIME AS
IMPACTINGTHEM TO BUY THE PRODUCT
AgreeDisagreeNot Sure

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4.9 What consumers look for in internet advertisements

The respondents were asked what they look for in internet advertisements displayed to them on various digital
devices. Wide range of options were given to the respondents and their selection of options (as to what do they
look for in online ads) are displayed in table 7:

Table 7
Option Frequency %age
Famous people appearing on
the ads.
5 10%
Consumer Review 8 16%
Discount and sale 11 22%
Others 3 6%
Price Information 11 22%
Product Information 12 24%

According to table 7, most consumers (12 respondents) look for product information, 11 respondents
looked for price info. 11 looked for discounts and sales, while the lower numbers 8, 5 and 3 look for consumer
reviews, famous people appearing on the ads and others respectively.

Figure 10

Figure 10 depicts that highest number of consumers look for price and product information or discounts and
sales. Minimum number of consumers look for famous people on the ads. While medium range of population
looks for consumer review in an internet advertisement.

5
8
11
3
11
12
F A M O U S P E O P L E A P P E R A I N G O N T H E AD
C O N S U M E R R E V I E WD I S C O U N T A N D S A L EO T H E R SP R I C E I N F O R M A T I O NP P R O D U C T I N F O R M A T I O N
C O N S U M E R S L O O K I N I N T E R N E T A D S

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Figure 11

Figure 11 shows the percentage of consumers who look different things in an internet ads: 24% look for product
info, 22% look for sales and discounts, 22% look for price info, 10% look for famous people in ads and 6% look
for other things in internet advertisements.

4.10 Discussions and Findings

The data connect with the findings of previous investigates which are passed on in this domain. Internet is tool
of mass communication for consumer to advertiser (Meeker) as most people spend most of their time on
internet as view advertisements online. In this respect, the findings of this research are that the highest 15
respondents of sample population (50 consumers) are using internet more than five hours while 30%
consumers use internet for 4 to 5 hours, same percentage use internet for 2 to 4 hours, 12% consumers spend
1 to 2 hours and the lowest 10% consumers spend an hour or less on internet (Figure 1). Among these,
66% respondents responded that they do not pay attention to internet ads while 34% agreed that they pay
attention to the ads (Figure 2). The reason for most population for not paying attention to internet ads is due the
reason that they find these advertisement as annoying and leading to buy unnecessary products as examined by
Lafferty, Goldsmith and Mehta Suh K.

Additionally, if advertisement ads are informative and more interactive then the chances are that consumers will
buy the product as consumer trusts in advertisement. Mixed responses came from the respondents in this
regards. According to the data 56% respondents find internet ads as informative while 28% don’t agree
and 16% are not sure about it (Figure 7). The findings also correlate with Lee M. that internet advertisement
ought to be informative. Furthermore, 24% consumers look for product info, 22% look for sales and discounts,
22% look for price info, 10% look for famous people in ads and 6% look for other things in internet
advertisements (Figure 11).

10%
16%
22%
6%
22%
24%
WHAT DO CONSUMERS LOOK IN AN INTERNET ADVERTISMENT
Famous people appearring on the adConsumer ReviewDiscount and sale
OthersPrice InformationProduct Information

21

Additionally, this study confirms the findings of Hussherr and Dreze that found the advertisement
shown for more time lead consumer to actually go and buy the product which is displayed by advertiser.
According to the data, 46% consumers agreed with the view that internet advertisements which are displayed for
more time lead the consumer to buy the product, while lowest 18% respondents disagreed and 36% were not sure
about it (Figure 9).

The range of impacts on consumer behaviour to buy advertised product are assessed in this study. The
impacts of online advertisement on consumer buying behaviour are high as 30% consumers are highly
impacted by online ads concerning their buying and selling behaviour, while 34% consumers are moderately
influenced and 36% are extremely less influenced (Figure
5). Furthermore, 54% of consumers agreed that they have bought products after seeing ads on the internet while
46% have not purchased the product after seeing internet ads (Figure 6).

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CHAPTER FIVE
Conclusion and Suggestions

5.1 Introduction

Present chapter is dedicate to present summary and findings of this stud. This chapter would summarize
the discussion of online advertisement impacts on consumer purchasing behaviour.

5.2 Summary

This study has found that internet advertisement has high impacts on consumers as high impact on consumers’
behaviour as 36% consumers responded that they are highly impacted. Internet has provided new arenas to all
domains including advertisement. As he consumer is spending more time (2 to 6 hours) on internet and thus it
provides communicational platform for advertiser to advertise producers’ product to the consumer. Advertiser
seeks to comprehend consumers’ behaviour which is impacted by the online advertisement in order to persuade
the consumer that he/she can rely on the information given by the advertiser. The consumers look for
various information about the product. This study finds that, most consumers (12 respondents) look for product
information, 11 respondents looked for price info.11 looked for discounts and sales, while the lower numbers
8, 5 and 3 look for consumer reviews, famous people appearing on the ads and others respectively (Table 8).
The study also confirms that internet advertisement has high influence on the consumer buying behaviour. Some
consumers find online advertisements annoying most numbers find it informative as it give information about
the product, review and price etc. This study finds that internet advertisement has high influence on consumer
behaviour. The study suggests, if advertiser displayed ads that attract the consumer to view and click it in order
to see details (as most consumers according to the findings of this study are inclined to look for product info
and price info). It would lead the consumer to buy the product. Thus, the advertiser would be able to gain its
objectives by more sales and profit to the mother company whose product is advertised.

5.3 Conclusion

This study was conducted in order to find effectiveness of web-advertisement on consumers’ behavioural
tendencies by utilizing the data acquired through questionnaires distributed to the students of NEWPORT
UNIVERSITY main campus. Presents study found out that internet has pushed human history towards new
horizons of digital age. The effectiveness of internet ads is determined by the findings of this study
depicted by Table 1 maximum 30% of the total population use internet for more than 5 hours. Moreover,
high percentage of sample population accepted that internet advertisement has high influence on their buying
behaviour (Figure 5).

This study also endeavours to evaluate the factors which influence consumers’ behaviour while viewing
the online ads presented in pop ups, banner ads, web pages, mobile applications and social media sites.
Most of the respondents found out that internet ads are annoying as they lead them to buy unnecessary
products. According to the findings, 66% respondents opted that they do not pay attention to internet ads
(Figure 2). The reason for most population for not paying attention to internet ads is due the reason that they
find these advertisement as annoying and leading to buy unwanted products.

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As most consumer dislike viewing online ads because they lack information, appropriate methods of
advertising, continuous communication with the consumer, and complete product info etc. According to the
findings certain suggestion are given below to increase the effectiveness of internet advertisement on
consumer buying behaviour so that promotions got successful and so profits for the mother company increase
many folds by selling more products to more people.

5.4 Suggestions

Present study suggest that advertisers should take consumer oriented approach while promoting a product
through internet means. The effectiveness is of online advertisement can be maximized by displaying
informative ads that do not irritate the consumer because if consumer is annoyed by online ads, it would
never lead to selling the product. So advertise must provide information of services and product. Furthermore,
Advertisement Company or advertiser ought to achieve the trust of consumers so that they could consider every
product displayed by the same advertiser.

5.5 Recommendations for additional plans

As present study examined the effectiveness of web ads on consumers behaviours which is responsible for
leading them to obtain and consumer the services and products, the comparative study is necessitated by
the fact that this domain of study insight into consumer- to-advertiser relationship in contemporary ways of
marketing. This would, additionally, provide new ways of web advertisements which are more effective
on consumer buying behaviour. Conclusively, as Maddox and Gong (2003) proposed “future research can
investigate the effectiveness of web promoting crosswise over various nations and societies to improve the
worldwide comprehension of web publicizing adequacy.”

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REFERENCES

? Alvin, and Ernst R. B (2002), Intermediary Substitutability and Market Demand by National Advertisers.
? Berthon and Watson (1996), The World Wide Web as an advertising medium: Journal of Promotion
Research.
? BhatBevans and Sengupta (2002), Measuring customers web activity to evaluate and boost
advertising effectiveness. Journal of Promotion.
? Bloch, H Sherrell, D.L. and Ridgway, (1986), Customer search: An complete framework. Journal of User
Research.
? Calisir (2003) Web advertising vs other media: young consumers’ view. Journal of Internet Research.
? Cho, C.H, (2003), Causes influencing clicking of banner ads on the WWW. Cyber Psychology ;
Performance.
? Danaher and Mullarkey, G.W., (2003), Causes affecting online promotion recall: A study of
students. Journal of Promotion Research.
? Dreze X and Hussherr, (2003), Internet advertising: Is anybody seeing? Journal of Marketing.

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QUESTIONAIRE

1. On average, how many hours do you spend on the internet per day?

? 1hour
? 1hr to2 hrs
? 2hrs to 4hrs
? 4hrs to 5hrs
? Above 5hrs

2. Do you pay attention to online advertisement?

? Yes
? No

3. Do you like advertisement on mobile, computer, laptop or using other electronic device?

? Yes
? No

4. How did you find such advertisements?

? Informative
? Creates awareness
? Irritating
? Waste of time

5. How much influence do you feel advertisements have over your behavior regarding buying and
consuming?

? Large Influence
? Medium
? Extremely low

6. Have you made any purchases after seeing internet ads?

? Yes
? No

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7. Advertising is beneficial to consumers because it provides important information about goods and
services. ‘To what extent do you agree with this statement?

? I Agree
? I Disagree
? Not sure

8. Do you agree that people become victim of advertising by purchasing unnecessary things?

? I agree
? I disagree
? Not sure

9. If an online advertisement is viewed for more time by a consumer then there are chances that consumer
would likely go and buy that product. Do you agree with this statement?

? I agree
? I disagree
? Not sure

10. The advertising is beneficial to consumers because it provides important information about goods and
services. Do you agree?

? Yes, I agree.
? No, I disagree
? Not sure

11. What do you look out for in online advertisement, if it catches you attention?

? Product information
? Price information
? Celebrities and famous people appearing on the advertisement
? Discounts and sales
? Consumer reviews
? Other

27