REPORT

ON
“THE EFFECTIVENESS OF INTERNET
ADVERTISING ON CONSUMER BEHAVIOUR”

Submitted in partial fulfillment for the Award of Degree of

BACHELOR OF BUSINESS
ADMINISTRATION
BBA
Submitted by
SAURABH BARI

ROLL NO:- 1900102489

Under the guidance of
MS.FARHEEN SIDDIQUI MA”AM.

Department of Commerce & Business Management

Faculty of Commerce & Management INTEGRAL
UNIVERSITY Kursi Rd, Lucknow, Uttar Pradesh
226026
 DECLARATION

I the undersigned solemnly declare that the report of the Project

work entitled “THE EFFECTIVENESS OF INTERNET
ADVERTISING ON CONSUMER BEHAVIOUR” is basedon
My own work carried out during the course of my study under
the supervision of MS.FARHEEN SIDDIQUI MA”AM
I assert that the statements made and conclusions drawn are an
outcome of the project work. I further declare that to the best of
my knowledge and belief that the project report does not contain
any part of any work which has been submitted for the award of
any other degree/diploma/certificate in this University or any
other University.

SAURABH BARI
1900102489

ii
 CERTIFICATE OF GUIDE

This is to certify that the Project entitled “THE EFFECTIVENESS OF

INTERNET ADVERTISING ON CONSUMER BEHAVIOUR” submitted to
the Department of Commerce & Business Management, Faculty of Commerce
& Management, Integral University, in partial fulfillment for the award of the
degree of Bachelor of Business Administration (BBA), is a record of work
carried out by SAURABH BARI Roll No. 1900102489 under my guidance.

The project report of student is found to be satisfactory for submission for the
award of degree of Bachelor of Business Administration (BBA). I wish her all
the best for her future endeavors.

MS.FARHEEN SIDDIQUI MA”AM

Professor/ Associate/Assistant Professor
 ACKNOWLEDGEMENT

Any fruitful work is incomplete without a work of thanks to those involved

directly or indirectly in its completion. With my sincere gratitude I would like
to thank everyone who has supported me in my project report.
I would like to thank for MS.FARHEEN SIDDIQUI MA”AM
providing me the opportunity to work on this research project. I also express
my sincere gratitude to him who took a lot of personal interest in supervising
this project and guiding me. He has been a great source of inspiration in the
task of completion of this project work. his profound advice timely guidance
has been immense value to me.
And thanks to my mom & Dad for their constant encouragement and patience
throughout my academic struggle.

SAURABH BARI
1900102489
 ABSTRACT
The present research paper is focusing on the effectiveness of internet advertising on
consumer Behavior. advertising consumer behavior, promotion in the internet
advertising is the key factors. Advertisers are anticipated to shift and expend millions
in internet advertising in the coming years than TV ads and other conventional
marketing media with the rapid growth in technology the internet is becoming an
important one stop point for consumers in finding most of their needs be it
communication activity shopping information explore internet server as a solution for
all the their requirements many consumers are online everyday for their individual
work but do not they observe the current study examine the effectiveness of internet
advertising on consumer behavior by performing the study required to decide the
effectiveness of internet advertising on reach and creation of attentiveness to establish
the reliability of internet advertising through remember and to decide the relationship
between internet advertising and purchase decision.
the target people where the Mumbai peoples the study used to stratified sampling
method to select 100 study respondent the primary data was collected using
questionnaire contain analysis was used to analyze qualitative data while the
quantitative data was analyzed using descriptive statistics using SPSS regression and
correlation analysis was used to show the relationship among the variables the data
was presented through percentage means standard deviations and frequencies the
study found that the internet advice to rising was effective on achieve and formation
of awareness due to various uses and established that its reliability as an advertising
media was low compared to TV internet advertising has important relationship with
purchase decision of the consumers that there is the optimistic relationships between
internet advertising and consumer purchase decision and further advocate that
companies should perform a market research on different market in various countries
to make sure that the internet advertising schemes being realized suit the targeted
markets to get better product purchase.
 TABLE OF CONTENTS
Declaration.....................................................................................................................ii
certificate......................................................................................................................iii
Acknowledgements.......................................................................................................iv
Abstract..........................................................................................................................v
Tableofcontents.............................................................................................................vi
Listof tables..................................................................................................................vii

CHAPTER ONE:INTRODUCTION.........................................................................1
1.1 Background tothestudy.............................................................................................1
1.1.1 The Conceptof Promotion...............................................................................2
1.1.2 The Concept ofInternetAdvertising................................................................3
1.1.3 The Concept ofConsumer Behaviour..............................................................4
1.2 ResearchProblem......................................................................................................5
1.3 ResearchObjectives..................................................................................................6
1.4 Value oftheStudy.....................................................................................................7

CHAPTER TWO:LITERATURE REVIEW............................................................8

2.1 Introduction..............................................................................................................8
2.2 Theoretical Foundation oftheStudy..........................................................................8
2.3 InternetAdvertising...............................................................................................10
2.4 IntegratedMarketing Communication...................................................................11
2.5 Effectiveness ofInternetAdvertising......................................................................12
2.6 ConsumerBehaviour..............................................................................................13
2.7 Internet Advertising andConsumer Behaviour......................................................16

CHAPTER THREE: RESEARCHMETHODOLOGY...............................................18

3.1 Introduction............................................................................................................18
3.2 ResearchDesign.....................................................................................................18
3.3 Population oftheStudy............................................................................................18
3.4 SampleDesign.......................................................................................................18
3.5 DataCollection........................................................................................................19
3.6 Validityand Reliability..........................................................................................19
3.7 DataAnalysis..........................................................................................................20

CHAPTER FOUR: DATA ANALYSIS, RESULTSANDDISCUSSION..................21

4.1 Introduction...........................................................................................................21
4.2 Backgroundinformation........................................................................................21
4.3 Effectiveness of internet advertising on reach and creationofawareness..............23
4.4 Reliability of internet advertisingthrough recall...................................................25
4.5 Relationship between internet advertising andpurchasedecision...........................27
4.6 Inferentialstatistics................................................................................................30
4.7 Discussionof findings.............................................................................................33
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
......................................................................................................................................35
5.1 Introduction...........................................................................................................35
5.2 Summary oftheStudy.............................................................................................35
5.3 Conclusion..............................................................................................................35
5.4 Recommendations.................................................................................................36
5.5 Suggestions for further studies..............................................................................37
REFERENCES............................................................................................................38
APPENDICES................................................................Error! Bookmark notdefined.
APPENDIX I:RESEARCHQUESTIONNAIRE.........Error! Bookmark notdefined.
 CHAPTER ONE INTRODUCTION 1.1 Background to the study
.Social networking sites are defined as “web-based services that allow
individuals to (1) construct a

Public or semi-public profile within a bounded system, (2) articulate a list

of other users with whom they

Share a connection, and (3) view and traverse their list of connections and
those made by others within the

System” (Boyd& Ellison, 2007, p. 211). The three most popular social
networking sites of today are

Facebook, YouTube and Twitter. Each of these webpages can be accessed

through a consumer’s tablet,

Smartphone, and/or computer

Accountingfor7.07%ofallAmericanwebtraffic,Facebookisthemostvisitedwebsite in
theUnited

States (Dougherty, 2010). There are over one billion Facebook users worldwide. In the
United States,

There are currently 159,646,460 active users on this social webpage (Rezab). In April
of 2013, there were

618millionactiveusersand680millionmobileusers.Onaveragetherewere2.7billion “likes”
dailyand

240 billion photos uploaded daily in April (Smith C).

With over 200 million users, Twitter also earns a spot as one of the most popular social
websites of

Today. Twitter is a social networking/micro blogging site that attracts over 35 million
users to its website

1
Monthly(Nielson,2013).Itisalsoreportedthat27millionusersaccessthesitethrough
theirmobile

Phone’s Twitter application (Nielson, 2013).

After pulling in 124,073,000 unique users in January, YouTube was identified by

Nielsen as the Top

Entertainment brand of 2013 (Nielson, 2013). YouTube is defined as a video sharing

website, but is more

Recently positioning itself as a social networking webpage. YouTube has many of the
social features that

Facebook and Twitter users have access. Similar to Facebook and Twitter, YouTube
users have the ability

Tocommentonmedia,uploadmedia,sharemedia,andbeexposedtorealtimeupdates.
YouTubeusers

Also have the ability to rate and “favorite” videos they view. YouTube account holders
can subscribe to

Different channels just as a Facebook user could “like” a page or a Twitter user could
“follow” another

Person or company. In April 2013, YouTube had 1 billion unique monthly visitors
(McCue, 2013).This

Statistic illustrates the popularity and usage of this social networking page.

Consumer’susageofFacebook,TwitterandYouTubehascaughttheattentionofmany
businesses.

Out of the all the Fortune 500 companies 365 (73%) have created a Twitter account,
330 (66%) have an

Active Facebook account and 309 (62%) have a YouTube account (Berkman, 2013).
While many
Ducoffe 1996

In this research, awareness, entertainment and motivationare considered

As a three variables prior to advertising value that effect on attitudes

Toward internet advertising.The results of this study showed that

Entertainment and awareness are two useful strategies n the field of

Internet advertising.

Woon&et 2009

In this study were investigated fivemajorbeliefs that affect theChinese

Consumers’ attitudes towards online advertising, these include:

Entertainment, Information Search, Validation, Economy and Distorted

Of Value that Entertainment, Validation and Economy are predictors of

Positive attitudes towards Internet advertising and Distorted of Value is

Related to negatively with attitudes.

Pieters 2010

This study was performed in relation to with effect of advertising

Complexity on consumer attitudes toward Internet advertising.

Specificity Complexity and design complexity assessed respectively

Positive and negative.

That Today is most common and most popular advertising model on the

Internet, was used in “Hot Wire’S”website. (Bagheri 2007) since it time

Internet advertising was considered seriously, so that, according to the

Report of “E.B.E 1” first six months of Internet advertising revenues in

2008, was nearly one and a half billion dollars and have been 15 percent

Increase in the same period compared 2007. (Sun 2010)

Hence, the emergence of the internet as a new media in communication

And advertisingrealm, has prompted researchers to carry out research in

This field (Papacharissi 2000), thus have been much research about how

Design of internet advertising and compared it with public

Advertisement. (Schlosser 1999)

Businesses have an online presence, they may not be effectively communicating with
their target market.
Internethasgrowntremendouslyinbothitsapplicationsandnumberofusersduetoits
uniquecharacteristicsofflexibility,interactivity,andpersonalization.Ithasbeenavery
useful tool for communication, entertainment, education, and electronic trade (Ko et
al., 2004; Koyuncu and Lien, 2003). The revolutionary change brought forth by
information technology has an important impact on the daily lives. It has transformed
the way we do business by allowing retailers to offer unlimited range of products and
services to all consumers from around the world at any point in time. The Internet has
emerged as an advertising medium (Silk et al., 2001). Many companies have turned to
the Internet to advertise their products and services; and the Internet is deemed to be
the most significant direct marketing channel for the global marketplace (Faber et al.,
2004; Ko et al., 2004; Korgaonkar and Wolin, 2002). Companies are pouring billions
of dollars into Internet advertising to obtain greater return on investment on ads
(Edwards, 2005; Joines etal.,2003).

The Internet has given consumers more control in accessing information on products
and services. There are several factors that contribute to consumers pull for online
content—consumers are the one who decide when, where, what, and how much
commercial content they wish to view (Korgaonkar and Wolin, 2002). The Internet
enables consumers to access an unlimited range of products and services from
companies around the world, and it has reduced the time and effort they spend on
shopping (Ko et al., 2004).

Consumersplayamuchmoreactiveroleinsearchingforinformationonlinewithsome goal
in mind, and that goal can influence individual behaviors and responses to online
informationandadvertisements(Smith,2002).Withtherapidadvancementinthe
computer industry, many companies have made the Internet as part of theiradvertising
media mix to take advantage of the online technologies (Calisir, 2003).
The Internet has become a popular advertising platform because marketers found that
the Internet possess greater flexibility and control over the advertising materials
(Ducoffe, 1996). Since the Internet can be used as an efficient marketing
communication tool, both scholars and practitioners are interested in understanding
how to take full advantage and maximizing the value of this communication medium
(Rodgers and Thorson, 2000).

ConsumerswithinKenyahavebeenlargelyexposedtothetraditionaladvertisingforms
asthemainmediausedbyadvertiserstoprovideinformation.However,overtheyears
marketing strategies have evolved with technology leading to the internet creating
unprecedented opportunities for digital marketers to connect with customers to create
an immersive connected digital environment, influence and drive purchases, fuel new
growthandcreatenewmarketshare.Thegrowthofinternetadvertisingisbothglobally and
locally outpacing offline advertising. While outdoor advertising is also experiencing
growth, it is not growing as rapidly as Internet advertising. It is on this basis that the
study investigated the effectiveness of online advertising based on a consumer sample
from University of Nairobi to determine the relationship between advertising and
consumerbehaviour.

1.1.1 The Concept ofPromotion

Promotionisthecomponentofacompany'smarketingsystemthatinvolvesdeliveryof
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 (Kurtz2010).

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 manufacturer pushes the product to the retailer.) The
same manufacturer might use a different promotional mix of local and national
advertising,in-storedisplays,salespromotion,andpublicrelationstoreachconsumers.
Thepullpolicydirectspromotionstowardstheconsumers.Itisusedtocreatecustomer
interest and demand. This study focuses on advertising as one of the strategies in the
promotional mix used by companies withinKenya.

Advertising is the communication relayed from companies to persuade an audience to

purchase their products. This communication is usually through various forms of paid
media -- TV and radio commercials, print ads, billboards and more recently, product
placements,socialmediaandonlineads.Adsareplacedwhereadvertisersbelievethey
willreachthelargest,mostrelevantaudience.CommercialbusinesseswithinKenya
e.g. Unilever, Safaricom use advertising to drive the consumption of their product,
whilenon-profitorganizationsmayplaceadstoraiseawareness orencourageachange in
behavior orperception.

1.1.2 The Concept of InternetAdvertising

Internet advertising is a form of promotion that uses the Internet and World WideWeb
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 brand’s website, or interact with the advertiser through other
touch points such as email, chat or phone. Response to brand communicationis
instantaneous, and conversion to business is very high. This is because in contrast to
conventional forms of interruptive advertising, the viewer has actually chosen to see
the commercial.

Consumercangatherinformationaboutproductsandservices,communicatewithother
consumers and firms for related products and services, and sometimes complete
transactions.AstheInternetsessionisaselfselectedenvironmentoftheconsumer,the
promotion message will be more effective. Internet advertising is also capable of
providinganexperientialenvironmenttotheconsumerthroughvirtualrealityinterfaces thus
allowing the consumer to experience some of the features of products before making
the purchase decision. Consumer can provide feedback content about the product, to
the firm and to other consumers. A positive feedback becomes a good
promotionforthemarketer.Amarketercanevenexploitanegativefeedbackbysolving
theconsumer’sproblemandshowingthecommitmentoftheorganizationtosatisfying
consumer needs. Consumer can also add “collective content” to the medium through
discussion forums like the virtual communities (Ducoffe, 1996). In Kenya, online
advertising has gained increased popularity with more people spending timeonline.

1.1.3 The Concept of ConsumerBehavior

The term "consumer behavior" refers to actions and decisions that factor into a
customer's 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 today’s consumer experience to
support businesses in retaining customers. This study seeks to determine and explain
the effectiveness of internet advertising in stimulating consumer response.

ThenumberofinternetusersinKenyawasestimatedat10.2millionin2011according to
Communications Commission of Kenya (CCK). This majority of internet users are
youthespeciallyuniversitystudents,whoregularlyusethesocialnetworksitesthrough their
mobile phones, either searching for information or chatting with friends online.
ManystudentsfromtheUniversityNairobihaveembracedtheevolutionintechnology,
andadoptedlatestvarietyofandroidproducts,tablets,ipads,andthepopularmodelsof
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 fibre
optic network offering fast internetconnections.

This study used a sample of these university students from the main campus to
determine and explain the relationship between internet advertising and consumer
behaviour. The students come from a diverse background and were ideal in studying
variouscharacteristicsrelatedtoconsumerbehaviour.Studentsareenrolledindifferent
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 toadvertising.

1.2 ResearchProblem
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 web sites,
corporate logos, e-mail messages, pop-ups, banner ads, skyscraper 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 one stop
pointforconsumersinfindingmostoftheirneeds.Beitcommunication,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
personalwork,butdotheynoticetheads,bannersetc.displayedonthatwebpage,most
important what is their recall/remembrance value. What about the reach of online
advertising, is it effective across over all targetgroups?

While a lot of research has been done on advertising, the effectiveness of online
advertising in Kenya is a segment that has been missing from these studies. Research
done by Wanjoga, (2002) mainly focused on consumer attitudes towards online
advertising in Nairobi, 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. Similar research
donebyWakukha,(2011)ontheuseofinternetadvertisingbyKenyamobiletelephone
industry, explained forms of internet advertising in use, the success and challenges
faced in its use and the level of adoption, but failed to provide information on its
effectivenessininfluencingorstimulatingconsumerresponse.Thefindingsofasurvey
oftheattitudeofconsumerstowardsretailmediaadvertisingbytobaccofirmsinKenya,
showed that the consumers are aware and knowledgeable about Retail Media
Advertising tools. The study used a sample of 200 consumers from retail outlets in
Nairobi,whichwasnotaviablesampletodetermineitseffectivenessonallconsumers
fromKenya.However,assuggestedbyGongandMaddox(2003),“futureresearchcan look
into the impact of web advertising across different countries and cultures to
enhancetheglobalunderstandingofwebadvertisingeffectiveness”(p:46).Inaddition,
more studies are needed to cover various samples in different countries to increase
external validity of the research findings (Calisir, 2003). To fill these gaps, the current
study sought to determine the effectiveness of internet advertising on consumer
behaviour.

1.3 ResearchObjectives
The objectives of the study were to;
 i. Determine the effectiveness of internet advertising on reach and creation of
awareness.
ii. Establish the reliability of internet advertising through recall. iii. Determine
the relationship between internet advertising and purchasedecision.
1.4 Value of theStudy
Thestudymaybenefitmarketers,businesses,governmentandacademicians.Thisstudy may
be able to inform marketers on the consumer preference of the advertising media and
whether using Internet adverting would be effective in reaching and increasing
awareness of the targetaudience.

Before adapting marketing practices to the Internet, it is imperative to understand the

characteristicsoftheonlinecustomerstowardsonlineadvertisingaswouldberevealed by
this study. The Internet has grown in popularity as an advertising medium because,
amongotherthings,itallows24-hourinteractivitybetweentheadvertiserandcustomer. It is
important for local businesses to look into internet advertising as more consumers turn
to the internet for their purchasing. A small business that can offer online purchasing
may be able to tap into this customerbase.

Thegovernmentfromthisstudywouldunderstandthevalueofinternetadvertisingand its
influence on consumer decisions which ultimately impacts electronic commerce/trade,
and therefore would effectively regulate how internet advertising is delivered by
acting rationally on laws that would restrict data usage, creating an
ambientenvironmentandavailingresourcestointernetprovidingcompaniesandatthe same
time safeguarding the interest ofconsumers.

For scholars and academic researchers, the current study forms a basis upon which
future research on Internet Advertising may be established. The findings may be
resourceful in providing viable information to academicians, researchers and
consumers on various concepts related to internet advertising.
 CHAPTER TWO LITERATURE REVIEW 2.1 Introduction
This chapter provides, through selective reference to some of the literature, a clearer
understanding of Internet advertising concept and outlines previous research findings
on the effectiveness of internet advertising based on measures of advertising
effectiveness.

2.2 Theoretical Foundation of theStudy

Emotional appeals in advertising theory and classical conditioning theory in learning
consumer behaviour form the theoretical basis of this study. Extensive academic
researchhasbeenconductedonthepsychologyofemotion(e.g.,Lazarus1984)andthe 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
seekingtopersuade.Indeed,Brown,HomerandInman(1998,p.115),suggestthatfrom a
practical perspective, “the relative strength of positive and negative feeling effects
potentially could guide advertisers’ decisions regarding executionalstrategies.”

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 Hagerty
1986). 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).

Theseinsightsnotwithstanding,anumberoffundamentalquestionsremainunanswered
with respect to ad appeals. Why, for instance, do these appeals induce such powerful
consumerresponsesincertaincases? Whatcausesthemtobemoreorlesseffectiveon
consumers? With specific reference to internet advertising, this study will attempt to
answer these questions.

Classical conditioning is often referred to as a means in which humans learn by

association. In the classical conditioning paradigm, Pavlov’s Dog, a neutral stimulusis
pairedwithanunconditionedstimulustoelicitanunconditionedresponse.Forexample,
afterrepeatedpairingsofmeat(knowntocausesalivation)withthesoundofabell,the sound
of a bell alone elicits salivation. This association is dependent on two
characteristicsoftheassociation:contiguityandfrequency.Thelawofcontiguitystates that
in order for associative learning to take place, the unconditioned stimulus and the
neutralstimulusmustbepairedcloseintimetoeachother.Furthermore,itisnotenough
foraneutralstimulusandanunconditionedstimulustosimplyco-existinacloseperiod of
time. The more frequent the pairing, the easier it is to form anassociation.

Proponents of applying classical conditioning to marketing believe that theassociation

between a product and positive stimuli may help explain the effect of many variables
in communication and attitude change. Gorn (1982) tested the effects of a positive
unconditioned stimulus on product preference. His results support the notion that the
simpleassociationbetweenaproduct(conditionedstimulus)andanotherstimulussuch as
music (unconditioned stimulus) can affect product preferences as measured by
productchoice.

However, these effects were diminished in situations where consumers were in a clear
decision making mode. The learning’s of classical conditioning give us some insight
on the characteristics of an effectively branded Internet advertisement. First and
foremost, the frequency with which an ad is served impacts brand awareness.
Frequencyalsoimpactswhetherornot,anassociationbetweenamessageandabrand, is
made by aconsumer.
2.3 Internet Advertising
As a new advertising channel the Internet and particularly the World Wide Web
(WWW) portion of the Internet, are challenging traditional forms of mass media
advertising (Hoffman and Novak, 1996; Hearn, Mandeville and Anthony, 1998).
Meeker (1998) defines a mass communication medium as the communication from
“one person or group of persons through a transmitting device (a medium) to a large
audience or market”. The Internet offers an interactive alternative to mass media
communication through the use of web pages, discussion groups and email (Hoffman
and Novak, 1996).

A significant advantage for advertisers will be the opportunity to communicate more

directlywithindividualconsumersthroughthismedium.Marketerswillalsobeableto
promote their products and services in a personalized, targeted manner to interested
people within their target market. Importantly, wastage of advertising and marketing
fundsoftenexperiencedwhenexposingpromotionalmessagestothemassmarket,may be
reduced as a result of using this new interactive medium. Advertisers will need to re-
address their techniques, services and agency structure and evolve new
communication strategies for the Internet as market share is being lost to this more
personalized, interactive form of Internetadvertising.

Schlosser et al., (1999) surveyed a national sample of over 400 participants and found
no majority opinion of Internet advertising-about a third of the participants liked,
disliked, and felt neutrally toward Internet advertising respectively. The Internet users
foundonlineadvertisingwasinformativebutlessentertaining,anditdidnotencourage them
to make purchases even they did not perceive it to increase product prices.
Korgaonkar and Wolin (2002) examined the differences between heavy, medium, and
light web users and concluded that “heavier users hold stronger beliefs about and
attitudes toward Web advertising which likely lead to stronger purchase intent” (p:
201).Comparingwithlighterusers,theheavyInternetusersbelievedthatwebadswere more
believable, entertaining, informative and helpful; but harder to understand. They
perceived that web advertising was a good thing, moderately essential, and it reduced
the cost of products. Marketers should include web advertising in their promotion
efforts but the ads should be designed with the respective user groups in mind.For
example, ads targeted to heavy web users should stress the price value relationship of
the products, since they engage in more frequent purchasing and believe that web
advertising helps to decrease the prices of products. Similarly, Ducoffe (1996) found
thatInternetadvertisingwasperceivedtobeinformative,entertaining,useful,valuable,
andimportant.

2.4 Integrated MarketingCommunication

The Internet has contributed to a greater adoption of integrated marketing
communication(IMC)strategies,byallowingmarketerstocommunicatemoredirectly with
individual consumers (Low, 2000). Internet functions become integrated into a
company’s communications mix, which permits the operation of the Internet as an
advertising medium to be incorporated alongside more traditional media types. The
applicationoftheIMCconceptinvolvestheprogressionawayfromthetraditionalone- to-
many marketing communication model for mass media to the one-to-one
communication, or many-to-many communication model (as illustrated in Figure 2.2)
(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 communicationchannel
to make both social exchanges using email and commercial exchanges to purchase
productsontheweb.Theadvertisingindustryisbeingchallengedtocreatemoredirect,
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). Along with the introduction of the Internet, advertising as a form of
communication has become more interactive. Traditionally advertising has involved
the reduction of information about a product, service or idea’s core benefits into a 30
second TVC, a full page colour magazine advertisement, or a 15 second radio spot, in
order to persuade the target market to take action (Shiva, 1997). However, while
traditional advertising involves the reduction of information, the Internet enables the
advertiser to provide consumers with detailed information with no time or space
restrictions.Internet-basedadvertisersdonotneedtorelyontraditionalmediachannels, and
are becoming liberated from these limitations, thus taking advantage ofinteractive
communication and informing and educating consumersonline.

Berthon, Pitt and Watson (1996, p. 53) argue that the WWW represents a “remarkable
new opportunity for advertisers and marketers to communicate with new and existing
markets in a very integrated way.” This is because the Internet, and in particular the
WWW,freesconsumersfromtheirtraditional‘passive’rolesasreceiversofmarketing
communication and gives them greater control over their information search and
acquisition process. As a result, consumers are now becoming interactive and more
active participants in advertising and marketing processes (Hoffman and Novak,1996;
Hoffman, Novak and Chatterjee,1997).

2.5 Effectiveness of InternetAdvertising

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, campaign publicity, attitudes toward the web
site or ad, and curiosity and innovative advertising strategy (Danaher and Mullarkey,
2003; Goldsmith and Lafferty, 2002; Menon and Soman, 2002). Danaher and
Mullarkey(2003)examinedtheeffectsofsuchfactorsasviewingmode,visitduration, 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 web site context
factors on advertising recall. The key finding was that the duration of page 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
advertisingrecall.

DrezeandHussherr(2003)alsoexaminedtheeffectivenessofadcharacteristicsonthe
abilitytorecallad.Animationcontent,theshapeofthebannerad,andfrequencyofthe ad
(repetition) leads to higher advertising recall but not the size of the banner. In
addition,theauthorsreportedthat“abanner’smessageinfluencesbothaided
advertising recall and brand recognition. This indicates that what an ad says is more
importantthanhowitsaysit”(p:21).Incontrast,Yoon(2003)foundthatbannerimage
ismoresignificantlyeffectivethantexttoassessconsumers’preferencestowardonline ads.

In terms of consumer responses in the form of liking online ads, researchers such as
Goldsmith and Lafferty (2002) and Metha (2000) have found that a more favorable
attitude towards ads can lead to a higher ability to recall ads. Goldsmith and Lafferty
(2002) found a significant relationship between positive responses to web sites andthe
likelihood of recall the brands advertised on the web. The authors reported that “In
general,researchsuggeststhatthoseconsumerswhohaveapositiveattitudetowardan ad are
more able to recall than those with a negative attitude (p: 320). Metha (2000) made a
similar conclusion but the study was based on print advertisingperformance.

Click-through rate is a widely used measure for assessing the effectiveness of banner
advertising, which is the average number of times a viewer clicks on a pop-up ad and
is then exposed to the target web site (Dreze and Hussherr, 2003; Faber, et al., 2004).
As reported by Cho (2003), “the banner advertisement click-through is believed to be
the most common way to draw consumers into a target site and engage them with a
brand or product.

2.6 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,orideastosatisfyneedsandtheimpactsthattheseprocesseshave 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,
andalsotriestoassessinfluencesontheconsumerfromgroupssuchasfamily,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 thegoods
havebeenacquiredorbought.Aprocessofbuyingstartsinthemindsoftheconsumer, which
leads to the finding of alternatives between products that can be acquired with
theirrelativeadvantagesanddisadvantages.Thisleadstointernalandexternalresearch.
Then follows a process of decision-making for purchase and using the goods, and then
thepostpurchasebehaviourwhichisalsoveryimportant,becauseitgivesacluetothe
marketers whether his product has been a success or not(Malcom).

The black box model shows the interaction of stimuli, consumer characteristics,
decisionprocessandconsumerresponses.Itcanbedistinguishedbetweeninterpersonal
stimuli(betweenpeople)orintrapersonalstimuli(withinpeople).Theblackboxmodel is
related to the black box theory of behaviourism, where the focus is not set on the
processes inside a consumer, but the relation between the stimuli and the response of
the consumer. The marketing stimuli are planned and processed by the companies,
whereastheenvironmentalstimulusisgivenbysocialfactors,basedontheeconomical,
political and cultural circumstances of a society. The buyer’s black box contains the
buyer characteristics and the decision process, which determines the buyer’sresponse.

Measuring customer behaviour is a crucial part of any business. Knowing what the
consumer wants and how he acts is vital in terms of product design, and marketing
(Todd, 1997). Assessment of consumer behavior in specific situations, using
observational and physiological methods, is becoming increasingly important in
understanding conscious and unconscious consumer behavior. An increased
understanding of consumer behavior may result in the development of improved
consumer products and in more healthy dietary patterns. A growing number of
techniques is available to assist researchers in measuring various aspects of consumer
behavior such as walking patterns, product selection, meal composition,and
eating/drinking. Due to advances in digital video, sensor technology and computer
speed, complex measurements of behavior and physiology are now possible.
Integration of these techniques allows multimodal measurements. With the growing
number of techniques, the challenge for the researcher to choose the right solution
becomes larger.

There are different ways of measuring consumer behaviour, depending on the interest.
Regularly conducting market research allows businesses to know their customers, and
takethemintoaccountwhenmakingbusinessdecisions.Thisgreatlyimprovesbusiness
performance, andprofits.

Common measurements includes, conducting a survey to determine consumer

behaviour. There are two main types of consumer survey: qualitative or quantitative.
Qualitative studies involve asking a few consumers a lot of in-depth questions.
Quantitativestudiesinvolveaskinglotsofconsumersafewquestions.Thelatterwould be
better for determining the market for a totally new product, since you only need to
find out if people would buy it. If you are amending a product, or making one similar,
a qualitative study would allow you to gain more detailedinformation.

Similarly, consumer behaviour would be measured by observing consumers going

abouttheirbusinesswithinpermittedstoresorshoppingmalls.Bywatchingconsumers, it is
possible to discern a great deal of information about their behaviour. Information such
as optimum height and location of a product and store layout is all gleaned from
observational consumer behaviour measures. Other techniques involve using raw data
toprovideameasurementtool.Forexample,releasinganewproducttothemarket,and
observing if it is bought regularly in conjunction with another product. If so, then an
assumptioncanbemadethatithasasimilardemographictothesecondproduct.Using the raw
data to determine what time of day, or weather, or time of year people buy a product
gives information on consumer behaviour. Using separate objective and subjective
data obtained from an interview or survey. The primary data from respondents is used
to make objective judgements, which are free frombias.
2.7 Internet Advertising and Consumer Behaviour
The evolution of the Internet as a global communication infrastructure (Cae, 2000)has
createdanewadvertisingchannelforadvertisersandadvertisingagenciestoutilizeand
willprovideadvertiserswiththemeanstomorecosteffectivelytargettheirpromotional
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. They’ve failed to innovate and bring the online advertising
experiencetoawholenewlevelofinteractionandintegrationthatwouldtrulyletthem
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,aspeoplereacttostimulionline—forexample,toanonlineadvertisement— they
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).

Advertisingandpromotionofferanewsfunctiontoconsumers.AsYooW.,SuhK.and LeeM.
(2002)mentionedintheirreport,personalinteractionswithothercustomersand
serviceprovidersplayaveryimportantrolewhileshoppingonline.Viewersofadslearn about
new products and services available to them, much like they learn about events in the
news. This information function has a neutral role. It provides facts without
approvalordisapprovalfromconsumers.Customerbehavioratthisstageencompasses
expressions of curiosity. Consumers have a rational response to advertising when they
lookatthefeaturesofaproductorservice.Thisresponsefocusesonalogicallistingof
allthefunctionalaspectsoftheoffering.Thisisanintellectualresponse,ratherthanan
emotional one (Lee,2002).
When customers weigh benefits, they become emotionally involved with advertising
andpromotion.Consumersidentifywaystheproductorservicecanmakethemhappier,
improve their lives or give them pleasure. This part of the consumer response is
irrational and can lead to impulse buying and competition to obtain the product.
Repeated advertising messages affect consumer behavior. This repetition serves as a
reminder to the consumer. Behavior that stems from reminders includes suddenly
thinking of a product while shopping and making a decision to buy it, as if it had been
on the consumer’s "to-do" list (Lee2002).

Consumer behavior splits between loyalty and alienation depending on how well the
product lives up to its advertised benefits (Thorson, 2000). Corporate behavior – such
asscandalsorcharitywork–canalsoaffectalienationandloyaltyresponses.Oncethe
consumer makes this choice, advertising and promotion are not likely to undo that
decision. The Cannon-Bard Theory that Walter Cannon and Philip Bard advocated
suggests human beings feel emotions first, and then act upon them. When customers
visitaWebsite,theadstheyencounterevokeanemotionalresponse—beforetheyeven
decide what their next step should be. If ads don’t trigger customers’ emotions, they
may not take any action inresponse.

Based on the review of the research studies mentioned above, it is clear that Internet
advertising is gaining much attention and should be an essential part of a marketer’s
advertising media mix. The inconclusive findings call for further studies on Internet
advertisingtogainmoreinsightintoconsumers’responseandperceptionoftheInternet as an
advertising medium. Hence, this study determined the effectiveness of internet
advertising as an ad medium, and its relationship to consumers’ response e.g. online
purchasedecision.
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction
This chapter focuses on research methodology that was used in the study. It provides a
detailed description of the research approach adopted in this study. Research design,
targetpopulation,researchinstruments,datacollectionandanalysismethodsusedwere
presented in the subsequentsections.

3.2 ResearchDesign
This study used descriptive research. Descriptive research involves gathering data that
describeeventsandthenorganizes,tabulates,depicts,anddescribesthedatacollection
(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 betterclarification
on online advertising, and ultimately give a clear picture on the effectiveness and
reliability of online advertising and its relationship to purchasedecision.

3.3 Thesampling

Sample Design:- population all the people within Mumbai region.

Sample Element: individual respondent was the samplingelement.

Sample Size:- The sample size of the study was 100individual.

Sampling Method:- Non purposive technique used in thisstudy.

3.5 Data Collection

The research made use of primary data, which was collected using structured
questionnaire distributed to the 100 respondents sampled in Mumbai region people.

3.7 Data Analysis

The study applied both nominal and ordinal scale to measure a range of factors
establishing the effectiveness of internet advertising on consumer behavior and an
interval scale in determining the relationship between internet advertising and
consumer behavior. 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 collected was compiled and edited to check for logical
inconsistencies. The data was then coded according to the responses. Relationships
between responses was assessed and presented using tables and graphs and analysis
wasdoneusingSPSS.RegressionandCorrelationanalysiswasappliedinthisstudyto reveal
relationships among variables in the findings from thedata.
 CHAPTER FOUR DATA ANALYSIS, RESULTS AND
DISCUSSION

The respondents were asked to indicate their age bracket. The study findings are
illustrated in Table 4.1.

Table 4..1 Distribution of the respondents by age bracket

Age bracket Frequency Percentage

19-25 years 82 82

26-35 years 18 18

Total 100 100.0

Source: Field data.

ThefindingsindicatethatmajorityofthestudentsattheuniversityofNairobiwereaged 19-
25years.
The study sought to establish the gender of the respondents and the findings are as
shown in Table 4.2.

Table 4.2 Gender distribution of the respondents

Frequency Percentage
Male 72 72
Female 28 28
Total 100 100.0

Source: Field data.

From Table 4.2, the study recorded a higher response rate from males than females in
their various years of study.
4.2 Effectiveness of internet advertising on reach and creation of

awareness
Thefirstobjectiveofthestudywastodeterminetheeffectivenessofinternetadvertising on
reach and creation of awareness. The study sought to establish whether the
respondents were aware of various forms of advertisements adopted by various
companies.Majorityoftherespondents(98%)attestedtobeingawareofvariousforms of
advertisements adopted by various companies. This illustrates 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 inMumbai.

The respondents were asked to indicate their attitude towards advertisements. Table
4.3 illustrates the studyfindings.

Table 4.3 Attitude towards Advertisements

Frequency Percent
Informative 35 35
Creates awareness 31 31
Entertaining 25 25
Irritating 3 3
Annoying 3 3
Waste of time 3 3
Total 100 100

Source: Field data.

As shown in Table 4.3, most of the respondents (35%) indicated that advertising was
informative, with a closer percentage indicating creation of awareness. 3% indicated
thatadvertisingwaseitherirritating,annoyingorawasteoftime.Thesefindingsmean
thatmostoftherespondentshadapositiveattitudetowardsadvertisingasillustratedby their
various perceptions about the use of advertising. This clearly shows a positive attitude
toward advertising and hence is a good indication for marketers. In order to further
identify the effectiveness of internet advertising on reach and creation of awareness,
the respondents were requested to indicate the amount of timespent on
various platforms of advertising. The responses were rated on a five point Likert scale
where: 1=less 1hr, 2=1 - 2hrs, 3=2 - 4hrs, 4=4 - 6hrs while 5=over 6hrs.

Table 4.4 Time spent on various platforms of advertising

Mean Standard deviation
TV, Movies 2.42 1.241
Newspaper, Mags 1.11 1.372
Radio 1.03 0.927
Internet 4.21 0.515

Source: Field data.

AccordingtothefindingsinTable4.4onanaverage,apersonspendsmorethan4hours on the
internet during his free time which is more than that of TV and movies, radio and
print medium. Hence, on an average the exposure of internet to an individual is
around40%morethanthatofothermediumsi.e.thereachofmediuminternetismuch better
than that ofothers.
The study sought to establish whether the respondents watched the TV/ or listened to
Radio commercials during commercial break. The findings are as shown in Table 4.5

Table 4.5 watching the TV commercials during commercial break

Frequency Percent
Yes 70 70
No 30 30
Total 100 100

Source: Field data.

Accordingtothefindings,themajorityoftherespondentsattestedtowatchingtheTV/
commercials during commercial break. This implies that for television commercials,
around 70% of consumers had a positive perception towards advertising onTV.

Table 4.6 change the channel during commercial breaks

Frequency Percent
Never 26 26
sometimes 17 17
depends on ad 33 33
Often 13 13
every time 11 11
Total 100 100

Source: Field data.

Respondents were asked to indicate if they changed channels during commercial and
theresultsweretabulated.Table4.6showsthatthedegreeofattractivenessoftheadvert and
its relevance to the respondents determined their attention to the advert. The viewers
would see the advertisement if the ad is attractive and appealing. Hence there
isaprobabilityof0.75ofaconsumerviewingtheparticularadvertisement(forcreating
awareness and information) on television making it an effective mode of
communication.

4.3 Reliability of internet advertising throughrecall

Thesecondobjectiveofthestudywastoestablishthereliabilityofinternetadvertising
through recall. First, the respondents were asked whether they would check an online
advert and the findings presented in the Table4.8.

Table 4.7 checking an online advert

Frequency Percent
Yes 21 21
No 79 79
Total 100 100

Source: Field data.

In case of online advertising, majority (79%) of consumers ignored the advert
completely while 21% indicated that they would check an online advert. Further the
studyfoundoutthat,outofthe21%respondents,15%saidthattheintentionwasnotto see the
ads, but they didn’t have any option but to see them as they were Interstitial Adverts,
Pop – up ads or Floating ads. These ads either block the view of the content, or appear
right in the middle of the page, or keeps on floating (moving) around which is
considered to be very irritating for the consumers. Checking the ads determinedthe
level of interaction with the online ads. Therefore, even though the reach of internet is
much higher than that of other modes, its ability to attract consumers for awareness
creation is very low.

The respondents were further asked to indicate their purpose of using internet. The
study findings are illustrated in Figure 4.1.

Figure 4.1 Internet usage

Source: Field data.

As shown in Figure 4.1, 30% of the respondents used internet for E-mail, 25% for
information, and others for chatting and social networking, indicating that
communications has been the fundamental value of the internet to consumers. There
was a higher chance of interaction with various online ads as reflected by the diverse
usage of internet.
To establish the reliability of internet advertising through recall, the respondents were
asked to indicate whether they would recall the last three TV and online ads.

Table 4.8 Ad recall

Recall
Frequency Percent
TV Yes 84 84
No 16 16
 Online ads Yes 30 30
No 70 70
Total 100 100

Source: Field data.

Thisisforthelastthreeadsthattheyhadseenconsciouslyorunconsciously.Incaseof TV ads,
84% remembered their last three ads which is a very good score in terms of creating
awareness. In case of Online ads, only 54% could remember their last three
interaction with the online ads. Therefore, one can easily make out the reliability of
onlineandTVadsrecallvalues.ThestudyfoundoutthatTVadsaremuchreliablethan internet
advertising and other forms ofadvertising.

4.4 Relationship between internet advertising and purchase decision

The third objective of the study was to determine the relationship between internet
advertising and purchase decision. Respondents were asked to indicate the mode
advertisingthatmostlyinfluencedtheirdecisiontopurchaseaproduct.Theresultswere
tabulated in Table4.10.

Table 4.9 Mode of advertising influencing intention to buy product

Frequency Percent
Magazines and newspaper 17 17
Friends and relatives 40 40
TV Commercial 29 29
Online advertisements 6 6
Social Media – Blogs, forums, Social Networking sites 8 8
Total 100 100

Source: Field data.

BasedonTable4.9above,thehighestnumberofstudents,40%oftherespondentswere
influenced to buy a product based on information provided by friends and relatives,
with TV commercials being second. Online advertisements was least in influencing
theirdecisionat6%.Therefore,friendsandrelativeswerethemajorinfluencersbehind
decisionmaking.Thisdepictsthattraditionalformofadvertisinghasanedgeover
internetadvertisingintermsofconsumerpreferencetomodeofadvertising.Traditional
modegotover86%preferencesthanthatofinternetadvertisingwhichisahugemargin.

Secondly, the respondents were also asked to indicate whether the internet ads they
came across influenced their purchase decision. 52% of the respondents indicated that
the internet ads they came across never influenced their purchase decision while 48%
posited that the internet ads they came across influenced their purchase decision. This
depicts that the internet advertising influenced purchase decision of the customers to a
moderate extent as only nearly half of the respondents were influenced purchase
decision.

Inordertofurtherdeterminetherelationshipbetweeninternetadvertisingandpurchase
decision,therespondentswererequestedtoindicatetheirlevelofagreementonrelevant
statements on effects of internet advertising on purchase decision. The responses were
ratedonafivepointLikertscalewhere:5-Toaverygreatextent,4Toagreatextent,3- To a
moderate extent, 2-To a little extent, and 1-To no extent. The mean and standard
deviations were generated from SPSS and presented inTable
4.10.

Table 4.10 tatements on internet advertising and purchase decision

Statements on Internet advertising and purchase Mean Standard
decision deviation
Internet advertising influences customers’ purchase 4.21 0.513
decision
duration of page viewing is a strong determinant of 4.13 0.746
the ability to recall banner ads
Animation content, the shape of the banner ad, and 3.92 0.841
frequency of the ad (repetition) leads to higher
advertising recall
Companies should aim to strengthen customer 4.11 0.62
interactions with advertisements on the Web
Most companies provide a generic experience to all 4.01 0.738
customers rather than relying on customer analysis to
deliver a personalized experience.
When customers weigh benefits, they become 4.05 0.673
emotionally involved with advertising and
promotion.
Repeated advertising messages affect consumer 3.98 0.847
behavior. This repetition serves as a reminder to the
consumer.

Source: Field data.

ThestudyestablishedthatInternetadvertisinginfluencescustomers’purchasedecision
(Mean=4.21)anddurationofpageviewingisastrongdeterminantoftheabilitytorecall
banner ads. Other factors as repeated advertising messages affect consumer behavior.
This repetition serves as a reminder to the consumer (Mean=3.98), and that animation
content, the shape of the banner ad, and frequency of the ad repetition leads to higher
advertising recall .This implies that the internet advertising is a key determinant of
purchasedecisionofthecustomersastheyconsiderittobeaninteractionpointbetween them
and the company from which they buy their productsfrom.

4.6 Inferential statistics

In determining the effectiveness of internet advertising on consumer behaviour, the
study conducted a multiple regression analysis to determine the nature of relationship
between the variables.

The regression model specification were as follows

Y=α+β1X1 +ε.
Where;
Y= consumer behaviour
X1= internet advertising
ε= error term
β=coefficient α=
constant

Thestudyfurtherappliedmultipleregressionstodeterminethepredictivepowerofthe
internet advertising on consumer behaviour. The researcher conducted a multiple
regression analysis so as to test relationship among variable (independent) on the
consumer behaviour. The researcher applied the statistical package for social sciences
(SPSSV17.0)tocode,enterandcomputethemeasurementsofthemultipleregressions for
thestudy.

Coefficient of determination explains the extent to which changes in the dependent

variable can be explained by the change in the independent variables or thepercentage
of variation in the dependent variable (consumer behaviour) that is explained by the
independent variable (internetadvertising).

Table 4.11 Model Summary

Model R R Square Adjusted R Std. Error of
Square the Estimate

1 0.919 0.845 0.789 0.6273

Source: Field data.

The independent variable that was studied, explain only 84.5% of the consumer
behaviour as represented by the R2. This therefore means that other factors not studied
in this research contribute 15.5% of the consumer behaviour. Therefore, further
research should be conducted to investigate the other factors that affect consumer
behaviour.

Table 4.12 ANOVA of the Regression

Model Sum of df Mean Square F Sig.
Squares
1 Regression 2.534 50 1.267 9.475 .000a
Residual 9.307 200 2.327
 Total 11.841 250

Source: Field data.

The significance value is 0.000 which is less than 0.05 thus the model is statistically
significanceinpredictinghowinternetadvertisingaffectstheconsumerbehaviour.The F
critical at 5% level of significance was 3.23. Since F calculated is greater than the F
critical (value = 9.475), this shows that the overall model wassignificant.

Table 4.13 Coefficient of determination

Model Unstandardized Standardized t Sig.
Coefficients Coefficients

B Std. Error Beta

1 (Constant) 1.147 0.2235 5.132 0.000

Internet advertising 0.752 0.1032 0.1032 7.287 .000

Source: Field data.

Multiple regression analysis was conducted as to determine the relationship between
consumerbehaviourandtheoneindependentvariable(internetadvertising).Asperthe SPSS
generated table , regression equation (Y=α+β1X1 +ε)becomes:
(Y= 1.147+ 0.752X1+ ε)

According to the regression equation established, taking all factors into account
(internet advertising) constant at zero, consumer behaviour will be 1.147. The data
findings analyzed also shows that taking all other independent variables at zero, a unit
increase in internet advertising will lead to a 0.752 increase in consumer behaviour;
This infers that internet advertising contribute most to the consumer behaviour. At 5%
levelofsignificanceand95%levelofconfidence,internetadvertisingwasasignificant,
factor in predicting the consumerbehaviour.

To quantify the strength of the relationship between the variables, the study used Karl
Pearson’s coefficient of correlation. The Pearson product-momentcorrelation
coefficient (or Pearson correlation coefficient for short) is a measure of the strength of
alinearassociationbetweentwovariablesandisdenotedby r.ThePearsoncorrelation
coefficient,r,cantakearangeofvaluesfrom+1to-1.Avalueof0indicatesthatthere is no
association between the two variables. A value greater than 0 indicates a positive
association,thatis,asthevalueofonevariableincreasessodoesthevalueoftheother
variable.Avaluelessthan0indicatesanegativeassociation,thatis,asthevalueofone variable
increases the value of the other variable decreases. The data presented before on
internet advertising was computed into single variables per factor by obtaining the
averages of each factor. Pearson’s correlations analysis was then conducted at 95%
confidence interval and 5% confidence level 2-tailed. The Table 4.15 below indicates
the correlation matrix between the internet advertising and consumerbehaviour.

Table 4.14 Correlation matrix and the coefficient of determination

Consumer behaviour Internet advertising
Consumer behaviour (r) 1.000
(p) Sig. (2 tailed)
Internet advertising (r) 0.894 1.000
(p) (2 tailed) 0.018

Source: Field data.

According to the Table 4.15, there is a positive relationship between consumer
behaviour and internet advertising of magnitude 0.894. The positive relationship
indicates that there is a correlation between the consumer behaviour with internet
advertising.

This notwithstanding, all the factors had a significant p-value (p<0.05) at 95%
confidencelevel.Thesignificancevaluesforrelationshipbetweenconsumerbehaviour and
internet advertising was 0.018. This implies that internet advertising was a significant
factor on consumerbehaviour.

4.6 Discussion of findings

Thestudyestablishedthattheeffectivenessofinternetadvertisingonreachandcreation
ofawarenesswasdeterminedbythelevelofknowledgeabouttheexistingplatformsof
advertisementsadoptedbyvariouscompaniesinMumbai..Mostoftherespondentshad
a positive attitude towards advertising as illustrated by their various perceptions about
the use of advertising. This clearly shows a positive attitude toward advertising and
hence is a good indication for marketers. The findings augment the findings of Baltas
(2003)whoindicatedthatmarketingisperceivedbytheinternetusersasamajorsource of
information on available product in the market as reflected by their positive attitude in
the world over. According to Calisir (2003) internet advertising is an effective
channelformarketingastheadisattractiveandappealingwhichchangesfromtimeto time.

Thestudyestablishedthateventhoughthereachofinternetismuchhigherthanthatof other
modes, its ability to attract consumers for awareness creation is very low. The study
concludes that the reliability of internet advertising through recall was low as only a
small percentage of the respondents could recall the online ads they had seen..
ThestudyfoundthatTVadsaremuchreliablethaninternetadvertisingandotherforms of
advertising. The findings are corroborated with Danaher and Mullarkey (2003) who
posited that TV ads are much reliable than internetadvertising.
 CHAPTER FIVE SUMMARY, CONCLUSION AND
RECOMMENDATIONS

5.1 Introduction
This chapter presents summary of findings, conclusion and recommendations of the
study in line with the objectives of the study.

5.2 Summary of theStudy

The study found 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 and time spent on these media. On average, a person spent more than4
hoursontheinternetduringhisfreetimethanthatofTVandmoviesandprintmedium and
therefore the reach of internet medium is much better than that of other media. A
higherpercentageindicatedthattheyweremadeawareofexistenceofvariousproducts
through internet advertising and therefore it was effective in creating awareness. The
study revealed that the ability of the respondents to recall the internet ads was low
compared to TV, and therefore even though the reach of internet is much higher than
other forms, TV ads are much more reliable than internet advertising Danaher and
Mullarkey(2003).Internetadvertisingisakeydeterminantofpurchasedecisionofthe
customersastheyconsiderittobeaninteractionpointbetweenthemandthecompany from
which they buy their products from. The study also established that internet
advertising has significant relationship with purchase decision of the consumers. From
the Pearson’s correlations analysis, the study established that there is a positive
relationship between consumer behaviour and internetadvertising

5.3 Conclusion
Thestudyrecognisethatfriendsandrelativeswerethemajorinfluencesbehinddecision
making this represents that conventional form of advertising has a frame over internet
advertising in terms of consumer first choice mode of advertising traditional approach
God hai preferences than the internet advertising which a huge margin the study
recognise that the internet advertising influenced by the decision of the customers to
reasonableexchangeasonlynearlyhalfoftherespondentshaveinfluencedbydecision
making of the consumers the study also recognised that the internet advertising as
earlier findings of gold Smith and left early 2002 that internet advertising is the key
determine of my decision by thecustomers.
The purpose of the study was to conclude the effectiveness of internet advertising on
consumer behaviour using a sample of Mumbai region after analysis of study finding
the study concludes that the effectiveness of internet advertising on achieve and
creation of awareness was determined by the level of information about the existing
platform for advertisement adopted by various companies in Mumbai region and time
to spend on various media

Thestudyconcludesthattheeffectivenessofinternetadvertisingonreachandcreation
ofawarenesswasdeterminedbythelevelofknowledgeabouttheexistingplatformsof
advertisements adopted by various companies in Mumbai and time spent on various
media. Internet advertising was effective in providing higher reach and creation of
awareness.However,inspiteofthediverseusageofinternetandwideinteractionwith
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 internetadvertising.

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.Thestudyfurtherconcludesthatinternetadvertisingcontributesmosttothe
consumer behavior and that internet advertising was a significant factor in predicting
the consumer behaviour. In addition, there is a positive relationship betweenconsumer
behaviour and internet advertising. This implies that companies should invest more in
internetadvertisingtoincreasetheirmarketshareandconductamarketresearchonthe
different markets in various countries to ensure that the internet advertising initiatives
being implemented suits the targeted markets to improve productpurchases.

5.4 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
shouldconductamarketresearchonthedifferentmarketsinvariouscountriestoensure 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)

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 APPENDICES
APPENDIX I: RESEARCH QUESTIONNAIRE
SECTION A – BACKROUND INFORMATION
1. Occupation?
2. Age Group (yrs): ☐ upto18 ☐19to25 ☐26to40 ☐41to55 ☐ 55+
3. Gender:☐Male ☐Female
4. FullName?
5. Where is your place ofresidence?

SECTION B – ATTITUDES, REACH AND AWARENESS

6. Do you likeAdvertisements?
☐ Yes ☐ No
☐ Informative ☐ Irritating
☐ Entertaining ☐ Annoying
☐ Creates awareness ☐ Waste time
of
7. How much time do you spend on?
TV, Movies ☐< 1hr ☐1 - 2hrs ☐ 2 - 4hrs ☐ 4 ☐ > 6hrs
-6hrs
Newspaper,Mags ☐< 1hr ☐1 -2hrs ☐ 2 - 4hrs ☐ 4 ☐ > 6hrs
-6hrs
Radio ☐< 1hr ☐1 - 2hrs ☐ 2 - 4hrs ☐ 4 ☐ > 6hrs
-6hrs
Internet ☐< 1hr ☐1 - 2hrs ☐ 2 - 4hrs ☐ 4 ☐ > 6hrs
-6hrs
8. Do you watch the TV/ or listen to Radio commercials during commercial break?
☐ Yes ☐No
☐ Informative ☐ Irritating
☐ Entertaining ☐ Annoying
☐ Createsawareness ☐ Waste oftime
9. I change the channel during commercial breaks…
☐ Never ☐sometimes ☐ everytime
☐dependsonad ☐often

i
SECTION C: AD RECALL
10. Which is the last Newspaper/Magazine ad you remember? Which brand wasit?

ii
11. Which is the last TV commercial you remember? Which brand wasit?

12. Name any three TV commercials you remember

lately 1.
2. 3.
13. Do you see/check online ads/mails when you surf theinternet?
☐ Never ☐sometimes ☐depends on ad☐often ☐everytime
14. Which is the last online ad you remember? Which brand wasit?

15. Name any three online ads you rememberlately

1.
2. 3.

SECTION D: INFLUENCERS, PREFERENCE AND PURCHASE DECISION

16. You use the internet for? (Rank them in order of yourpreference)
☐ Chatting
andSocialNetworking ☐
☐ Email ☐
☐ Information ☐

☐ Entertainment ☐

☐ E-Commerce ☐

☐ Downloading ☐

17. What mode of advertising influences you to buy anyproduct?

☐ Magazines and newspaper
☐ Friends and relatives
☐ TV Commercial
☐ Onlineadvertisements
☐ Social Media – Blogs, forums, Social Networkingsites
18. Which mode of advertising would you prefer? (Rank in order ofpreference)
☐ TVCommercials ☐

☐ Print
Ads:Newspaper,Magazines ☐
 ☐ Baners,Posters ☐

☐ Online
Ads:Banners,Emails, ☐
19. Have you made any purchases after seeing internetads?
☐ Yes ☐No

20. Whatistherelationshipbetweeninternetadvertisingandpurchasedecision,Please tick

where appropriate: 5-To a very great extent, 4-To a great extent, 3-To a moderate
extent, 2-To a little extent, and 1-To noextent.

1 2 3 4 5
Statements on Internet advertising To no To a To a To a To a
and purchase decision Extent little moderate great very
extent extent extent great
extent
Internet advertising influences
customers’ purchasedecision
duration of page viewing is a strong
determinant of the ability to recall
banner ads
Animation content, the shape of the
banner ad, and frequency of the ad
(repetition) leads to higher advertising
recall
Companies should aim to strengthen
customer interactions with
advertisements on the Web
Most companies provide a generic
experience to all customers ratherthan
relyingoncustomeranalysistodeliver a
personalizedexperience.
When customers weigh benefits, they
become emotionally involved with
advertising and promotion.
Repeated advertising messages affect
consumer behavior. This repetition
serves as a reminder to the consumer.