CCASBCM093.pdf - Christ College Irinjalakuda

“A STUDY ON THE EFFECTIVENESS OF INTERNET ADVERTISING ON

CONSUMER BEHAVIOUR WITH SPECIAL REFERENCE TO CHRIST

COLLEGE, IRINJALAKUDA STUDENTS”

Project Report submitted to

UNIVERSITY OF CALICUT

In partial fulfillment of the requirement for the award of the degree of

BACHELOR OF COMMERCE

Submitted by

JEEVAN THOMAS

(CCASBCM093)

Under the supervision of

Ms. VIJAYA E.S

DEPARTMENT OF COMMERCE

CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA

MARCH 2021

CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA

CALICUT UNIVERSITY

DEPARTMENT OF COMMERCE

CERTIFICATE

This is to certify that the project report entitled “A STUDY ON THE EFFECTIVENESS

OF INTERNET ADVERTISING ON CONSUMER BEHAVIOUR WITH SPECIAL

REFERENCE TO CHRIST COLLEGE, IRINJALAKUDA STUDENTS” is a bonafide

record of project done by JEEVAN THOMAS, Reg. No. CCASBCM093, under my

guidance and supervision in partial fulfillment of the requirement for the award of the degree

of BACHELOR OF COMMERCE and it has not previously formed the basis for any Degree,

Diploma or Associateship or Fellowship.

Prof. K.J. JOSEPH Ms. VIJAYA E.S

Co-ordinator Project Guide

DECLARATION

I, JEEVAN THOMAS, hereby declare that the project work entitled “A STUDY ON THE

EFFECTIVENESS OF INTERNET ADVERTISING ON CONSUMER BEHAVIOUR

WITH SPECIAL REFERENCE TO CHRIST COLLEGE, IRINJALAKUDA STUDENTS”

is a record of independent and bonafide project work carried out by me under the supervision

and guidance of Ms. Vijaya E.S, Department of Commerce, Christ College, Irinjalakuda.

The information and data given in the report is authentic to the best of my knowledge. The

report has not been previously submitted for the award of any Degree, Diploma,

Associateship or other similar title of any other university or institute.

Place: Irinjalakuda JEEVAN THOMAS

Date: CCASBCM093

ACKNOWLEDGEMENT

I would like to take the opportunity to express my preferred thanks and gratitude to all people

who have helped me with sound advice and able guidance.

Above all, I express my eternal gratitude to the Lord Almighty under whose divine guidance;

I have been able to complete this work successfully.

I would like to express my sincere obligation to Rev. Dr. Jolly Andrews, Principal-in-Charge,

Christ College, Irinjalakuda for providing various facilities.

I am thankful to Prof. K.J Joseph, Co-ordinator of the Department, for providing proper help

and encouragement in the preparation of this report.

I am thankful to my class teacher, Prof. Lipin Raj, for providing proper help and

encouragement in the preparation of this report.

I express my sincere gratitude to Ms. Vijaya E.S, whose guidance and support throughout the

training period helped me to complete this work successfully.

I would like to express my preferred gratitude to all the faculties of the Department for their

interest and cooperation in this regard.

I extend my hearty gratitude to the librarian and other library staffs of my college for their

wholehearted cooperation.

I express my sincere thanks to my friends and family for their support in completing this

report successfully.

TABLE OF CONTENTS

CHAPTER NO: CONTENTS PAGE NO:

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1 INTRODUCTION 1-5

CHAPTER 2 REVIEW OF LITERATURE 6-9

CHAPTER 3 THEORETICAL FRAMEWORK 10-13

CHAPTER 4 DATA ANALYSIS AND

INTERPRETATION

14-34

CHAPTER 5 FINDINGS, SUGGESTIONS AND

CONCLUSION

35-37

BIBLIOGRAPHY

APPENDIX

LIST OF TABLES

TABLE NO: TITLE PAGE NO:

4.1 Table showing Distribution of the respondents

by year of study

15

4.2 Table showing Distribution of the respondents

by age

16

4.3 Table showing Gender distribution of the

respondents

17

4.4 Table showing Awareness of internet

advertising

18

4.5 Table showing Hours spent on internet daily 19

4.6 Table showing Respondents paying attention

to the internet advertisements

20

4.7 Table showing Attitude of respondents

towards advertisements

21

4.8 Table showing Interference of online

advertisements during other online activities

22

4.9 Table showing Influence of internet

advertisements on consumer buying behavior

23

4.10 Table showing What the respondents mostly

use the internet for

24

4.11 Table showing Most time spent on various

modes of advertising

25

4.12 Table showing Watching the TV commercials

during commercial break

26

4.13 Table showing Change of channel during

commercial breaks

27

4.14 Table showing Respondents checking/looking

for an online advert

28

4.15 Table showing Ad recall 29

4.16 Table showing Duration of page viewing is a

strong determinant of the ability to recall

banner ads

30

4.17 Table showing Animation content and shape

of the banner Ad helps in Ad recall

31

4.18 Table showing Mode of advertising

influencing intention to buy product the most

32

4.19 Table showing Effectiveness of internet Ads

on actual purchase decision

33

4.20 Table showing Effect of repeated advertising

on consumer behaviour

34

LIST OF FIGURES

FIGURE NO: TITLE PAGE NO:

4.1 Figure showing Distribution of the

respondents by year of study

15

4.2 Figure showing Distribution of the

respondents by age

16

4.3 Figure showing Gender distribution of the

respondents

17

4.4 Figure showing Awareness of internet

advertising

18

4.5 Figure showing Hours spent on internet daily 19

4.6 Figure showing Respondents paying attention

to the internet advertisements

20

4.7 Figure showing Attitude of respondents

towards internet advertising

21

4.8 Figure showing Interference of online

advertisements during other online activities

22

4.9 Figure showing Influence of internet

advertisements on consumer buying behavior

23

4.10 Figure showing What the respondents mostly

use the internet for

24

4.11 Figure showing Most time spent on various

modes of advertising

25

4.12 Figure showing Watching the TV

commercials during commercial break

26

4.13 Figure showing Change of channel during

commercial breaks

27

4.14 Figure showing Respondents

checking/looking for an online advert

28

4.15 Figure showing Ad recall 29

4.16 Figure showing Duration of page viewing is a

strong determinant of the ability to recall

banner ads

30

4.17 Figure showing Animation content and shape

of the banner Ad helps in Ad recall

31

4.18 Figure showing Mode of advertising

influencing intention to buy product the most

32

4.19 Figure showing Effectiveness of internet Ads

on actual purchase decision

33

4.20 Figure showing Effect of repeated advertising

on consumer behavior

34

CHAPTER I

INTRODUCTION

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1.1 Introduction

In a competitive market, it is important for advertising managers to grab the

consumers attention through advertisements and sales promotion. A sizable

marketing budget is spent on advertising. The trend of using digital media

platforms for advertising is fast growing. This study intends to explore the

importance of internet advertising on different consumer behaviour stages.

The consumer expectations of information from various media such as TV,

radio, newspapers, magazines and the internet are entirely different. The

characteristics of different media and its immediate and long-term effects on

consumers are also varied. For instance, TV allows high quality audio-visual

content that is more suitable for product categories, which require physical

demonstration. Radio offers audio content and is most suitable for businesses

catering to the local markets. Internet had grown tremendously in both its

applications and number of users due to its unique characteristics of flexibility,

interactivity and personalization. It has been a very useful tool of

communication, entertainment, education and electronic trade. 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. Companies are pouring billions of dollars into

internet advertising to obtain greater return on investment on ads. The internet

has given consumers more control in accessing more information on products

and services. There are several factors that contribute to consumers pull for

online content. Now consumers are able to shop from companies around the

world, and it has reduced the time and effort they spend on shopping.

1.2 Statement of the problem

Internet Advertising is a very important tool used to stimulate consumer

behaviours by ways of getting them informed or by reminding them about a

product but it must persuade them to purchase the products. As such, it becomes

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very important in marketing. In addition, the use of social media helps the

companies to promote the products, build relationship with consumers and

understand the consumer’s needs. Ambrose and Catherine (2013) did a

study/research on social media and entrepreneurship growth and it was revealed

that social media tools play various roles to different SMEs and that the tools

could be incorporated into different operational roles in the business. A lot of

studies have been done on online advertising and less on online advertising and

its effects on consumer behaviour. Therefore, this study sought to address this

knowledge gap by focusing on establishing the effectiveness of online

advertising on consumer behaviour.

1.3 Significance of the study

Government plays a crucial role in determining the content that the public gains

access to in the internet, therefore the findings from this study will encourage

government organizations to come up with policies that will encourage the use

of social media marketing. This research will, act as a reference to future

academic studies hence provide more information on online marketing and

consumer decision. The study will also add more knowledge to existing

information. Organizations will benefit from findings from this study because

they will be able to come up with online strategies, they can use to develop

online advertising companies to attract new and existing consumers.

1.4 Objectives of the study

The general objective of the study is to find out the effectiveness of internet

advertising on consumer behaviour. Specific objectives are as follows:

1.4.1 To establish the effect of online advertising on reach and creation of

awareness

1.4.2 Establish the reliability of internet advertising through recall.

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1.4.3 Determine the relationship between internet advertising and purchase

decision.

1.5 Research Design

1.5.1 Nature of study

This study is descriptive in nature. The study examines the behaviour of certain

students of a college towards internet advertising.

1.5.2 Nature of data

The data collected for this study is primary data.

1.5.3 Sources of data

There are two sources of data, primary data and secondary data. Here,

quantitative primary data sources like questionnaires are used. Secondary

sources include web sites, journals, textbooks of different authors etc.

1.6 Sample design

1.6.1 Nature of Population

The study is conducted on consumer behaviour or reaction towards internet

advertising among 50 students of Christ College, Irinjalakuda.

1.6.2 Sample unit

Sample unit is a group or sub group that is obtained from the population that a

researcher wishes to study. The sample of this study comprise of students in the

various departments of the college.

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1.6.3 Method of sampling

The method of sampling used is convenience sampling. It is a type of non-

probability sampling that involves the sample being drawn from that part of

population that is close to hand.

1.6.4 Size of sample

50 respondents from Christ college, Irinjalakuda were taken into consideration

to constitute the size for the study.

1.7 Tools for analysis

Questionnaire were created in order to receive the necessary response required

to achieve the research objective. This was done by issuing 20 questionnaires

to the respondents. statistical and analytical tools were used such as: tables,

graphs and percentages.

1.8 Limitations of the study

Consumers have an attitude and the type of attitude influences their mental

position for certain matter. Also, different group of consumers have varied

attitude towards the adverts and this also depend on the demography of the

clients by age and lifestyle. Other issues of privacy and internet connectivity

also influence the same. The study was also confined to 50 students and

therefore the results cannot be generalized.

1.9 Chapterization

Chapter 1: Introduction – This chapter introduces the background to the

research topic, objectives, scope, methodology adopted and limitation of study.

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Chapter 2: Review of Literature – It reveals the review of literature from

various sources for a detailed understanding of the research topic.

Chapter 3: Theoretical Framework – It is the structure that can hold or support

a theory of a research study.

Chapter 4: Data analysis and Interpretation – This chapter includes data

analysis and interpretation.

Chapter 5: Findings, Suggestions and Conclusion – It is a conclusive chapter

and it includes findings, suggestions and conclusions regarding the study.

CHAPTER II

REVIEW OF LITERATURE

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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 Empirical literature

Aaker and Hagerty (1986), 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. 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.

Todd (1997), 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. Assessment of consumer behaviour in specific situations,

using observational and physiological methods, is becoming increasingly

important in understanding conscious and unconscious consumer behaviour. An

increased understanding of consumer behaviour 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 behaviour 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 behaviour 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.

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Wolhandler (1999), As consumers experience and respond to stimuli around

them, emotions arise. Their reactions manifest themselves as physiological

changes they experience as feelings. Likewise, as people react to stimuli

online—for example, to an online advertisement—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.

Thorson (2000), Consumer behaviour splits between loyalty and alienation

depending on how well the product lives up to its advertised benefits. Corporate

behaviour – such as scandals or charity work – can also affect alienation and

loyalty responses. Once the 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 visit a Web site, the ads they

encounter evoke an emotional response—before they even decide what their next

step should be. If ads don’t trigger customers’ emotions, they may not take any

action in response.

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

favourable 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 and the likelihood of recall the brands advertised on the

web. The authors reported that “In general, research suggests that those

consumers who have a positive attitude toward an 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 advertising performance.

Dreze and Hussherr (2003), also examined the effectiveness of ad characteristics

on the ability to recall ad. Animation content, the shape of the banner ad, and

frequency of the ad (repetition) leads to higher advertising recall but not the size

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of the banner. In addition, the authors reported that “a banner’s message

influences both aided advertising recall and brand recognition. This indicates that

what an ad says is more important than how it says it” (p: 21). In contrast, Yoon

(2003) found that banner image is more significantly effective than text to assess

consumers’ preferences toward online ads.

Dreze and Hussherr (2003), 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. 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.

Thompson (2005), said that e-marketing has a huge target audience, growing e-

technology has a high potential to cut-down the cost and increase revenue e-

commerce, carry day today activities by having low cost and shrinking the time

for both buyers and sellers. Dealing with different business sectors and

departments it unites them at one platform, through internet companies all

departments deal with customers at a time. As compare to the old traditional

marketing e-marketers has low cost to bare. Through this if you want to buy

products from different countries you can get them on your home place.

Khan and Mahapatra (2009) said that nowadays living in global village

technology plays a dynamic role in enlightening the quality of services provided

by the business elements. Internet technology has widely spread over the world.

They cut-down the borders and unite them on one global platform. E-marketing

cut down the excessive cost which we have to pay if we are physically doing

that. Living in the 21st century people research a lot before buying or totally

relay on whatever the company and marketer said. It also cut down the cost of

having a physical place for their company to sell their product. Through e-

marketing your target market highly increase and you have to deal all of them at

a time. Nowadays all top-level business relay on e-marketing rather than

traditional marketing and selling method. Like old traditional advertisement,

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companies now have to pay the cost only if the customer really wants to buy that

product. It reduces customers and seller time as well.

Peter & Robin (2015), Electronic transaction of goods and services are new in

the marketing field. People nowadays because of e-marketing research very

keenly before buying those products or services. As we search through online,

we get many options at a time, without any hard work and less time consuming.

You can survey competitors’ products together at a time. They easily choose the

best one between different companies without paying a single amount. Number

of companies nowadays influencing their customers to buy their product from

the company’s official websites. Almost nowadays young people from 16 to 26

years old attracted towards e-marketing as compare to elders, because elder

people still believe in traditional shopping rather than the e-marketing. But those

elders who do jobs and other professional activities they don’t have time to

survey the market for the product, so those professional also attracted towards e-

marketing. Developed countries highly prefer e-marketing because they highly

do massive research before buying anything so that’s why the online marketing

help to analyse the best product or services for themselves.

CHAPTER III

THEORETICAL FRAMEWORK

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3.1 Concept of internet advertising

Internet advertising is a form of promotion that uses the Internet and World Wide

Web for the expressed purpose of delivering marketing messages to attract

customers. Examples of online advertising include contextual ads on search

engine results pages, banner ads, Rich Media Ads, Social network advertising,

online classified advertising, advertising networks and e-mail marketing,

including e-mail spam. Online video directories for brands are a good example

of interactive advertising. These directories complement television advertising

and allow the viewer to view the commercials of a number of brands. If the

advertiser has opted for a response feature, the viewer may then choose to visit

the brand’s website, or interact with the advertiser through other touch points

such as email, chat or phone. Response to brand communication is instantaneous,

and conversion to business is very high. This is because in contrast to

conventional forms of interruptive advertising, the viewer has actually chosen to

see the commercial.

Consumer can gather information about products and services, communicate

with other consumers and firms for related products and services, and sometimes

complete transactions. As the Internet session is a self-selected environment of

the consumer, the promotion message will be more effective. Internet advertising

is also capable of providing an experiential environment to the consumer through

virtual reality interfaces 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 promotion for the marketer. A marketer can

even exploit a negative feedback by solving the consumer’s problem and

showing the commitment of the organization to satisfying consumer needs.

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3.2 The concept of consumer behaviour

The term "consumer behaviour" refers to actions and decisions that factor into a

customer's purchase. Researchers, businesses and marketers study consumer

behaviour to understand what influences a consumer's shopping preferences and

selection of products and services. Multiple factors affect consumer behaviour,

among them economic status, beliefs and values, culture, personality, age and

education. Findings on consumer behaviour 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 behaviour is increasingly

important for businesses accordingly. 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.

3.3 Measures of customer satisfaction

In measuring customer satisfaction certain indicators has to be considered.

Measures like repeat purchase, loyalty, positive word of mouth, retention and

increased long-term profitability are used. The negative theory of customer

satisfaction states that any variation in performance from expectation will disrupt

the individual and produce negative energy. This theory asserts that if customers’

expectations are strategy held, consumers will respond negatively to any

disconfirmation and dissatisfaction is likely to occur if performance is less than

expectations but if performance is more than expectations, satisfaction will

occur.

3.3.1 Customer satisfaction

The major aim for establishing a company is to make profit through products and

services, purchases by consumers. Products and services are being developed by

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firms and they map out appropriate strategies in offering the products and

services to targeted customers. The targeted customers get convinced and make

purchase for use and to satisfy their needs. When targeted customers are satisfied

with the product and services, they keep on making purchases. Customer

satisfaction can be said to be a process or an outcome. The rate at which firms’

products are purchased by consumers and quality online practises result to

customer satisfaction retention, huge patronage and loyalty to organization once

a customer is satisfied, he/she is likely to remain loyal to the company and will

repeat purchase.

Through satisfaction of customers companies achieve their goals. Satisfaction is

said to be a person’s feeling of pleasure or disappointment which is as a result of

comparison of a product’s perceived performance in relation with his or her

expectations. Therefore, customer satisfaction can be defined as a result of

cognitive and effective evaluation, in which some comparisons are made

between the actual compared standard and if the perceived performance is more

than accepted the customer will be satisfied. Customers will be in neutral stage

if perceived expectations met performance. Expectations can be formed by

customers from their past experiences, friends, associate’s advice, marketers,

competitors’ information and promises. Expectations are determined by

customers’ needs, total value and total cost. Choosing a product or service is

among the stages customers go through. Buyer’s characteristics influence its

decision, such as culture, social, personal, psychological factors. Information

search is the key to consumer’s decision-making process which can be for both

internal and external information.

Consumers continue to search for information because it is a risk in order to meet

up the uncertainties of potential positive or negative consequences. At times

customers passes through all the stages or they may skip some. But customers

are looking for value in the product that they are buying. Customers seek for info

about the product they want to buy to check if it is in line with their expectations

and if the product or service is of essential importance, they check these through

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surveys customer discussions. Customer orientation is also important and need

to be measured constantly. Customer being the “life blood” of every business

and at the same time the reason while business is established need satisfaction

but at the same time it has been favourable attributes such as repeat purchase

behaviour and positive word of mouth.

3.3.2 Theoretical foundations and operational framework

Instant gratification mathematical theory was originated by Robertz in 1956. He

said that two things are responsible for the successful theory: first, the discount

function should be on the difference between the current time and the future time

at which discounted reward is consumed. Second, the discount function should

be non-exponential. He went further to state that empirical discount rate reduces

with time horizon. Today’s generation is nicknamed ‘microwave generation’

because they are used to getting things so fast. Because of internet evolution and

technology there is little to no patience in people. Instant gratification theory saw

the fast pace environment in which we live that requires instant action and how

things happen at once and quickly. By implication, online advertising has impact

on consumers as the use of internet to advertise makes it faster, efficient and

effective.

CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

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4.1 Introduction

This chapter presents analysis and findings of the study as set out in the research

methodology. The results were presented on the effectiveness of internet

advertising on consumer behaviour in the case of Christ college students. The

study objectives were; to determine the effectiveness of internet advertising on

reach and creation of awareness; to establish the reliability of internet advertising

through recall; and to determine the relationship between internet advertising and

purchase decision. The chapter covers the demographic information, and the

findings based on the objectives. The findings were then presented in tables,

graphs and charts as appropriate with explanations being given thereafter.

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Table 4.1

Table showing Distribution of the respondents by year of study

Year of study Respondents Percentage

First year 3 6

Second year 5 10

Third year 42 84

Total 50 100

Source: Primary data

As shown in table 4.1, the study sample was representative of all the years of

study with the third-year students forming the highest proportion of the sample.

Figure 4.1

Figure showing Distribution of the respondents by year of study

14

20

66

first year second year third year

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Table 4.2

Table showing Distribution of the respondents by age

Age bracket Respondents Percentage

18-20 years 41 82

21-23 years 9 18

Total 50 100


The findings indicate that majority of the respondents were aged 18-20 years.

Figure 4.2

Figure showing Distribution of the respondents by age

82

18

18-20 21-23

- 17 -

Table 4.3 Table showing Gender distribution of the respondents

Gender Respondents Percentage

Male 36 72

Female 14 28

Total 50 100


According to Table 4.3, the respondents consisted of significantly more males

than females.

Figure 4.3

Figure showing Gender distribution of the respondents

72

28

Male female

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Table 4.4

Table showing Awareness of internet advertising

Awareness Respondents Percentage

Fully aware 28 56

Partially aware 22 44

Not at all aware 0 0

Total 50 100


From table 4.4 findings indicate that every single student is aware of internet

advertising. It is no surprise considering the prominence of internet in today’s

world.

Figure 4.4

Figure showing Awareness of internet advertising

56

44

Fully aware Partially aware

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Table 4.5

Table showing Hours spent on internet daily

Hours spent Respondents Percentage

<1hr 4 8

1hr to 3hrs 16 32

3hrs to 4hrs 17 34

4hrs to 5hrs 5 10

>5hrs 8 16

Total 50 100


The above graph shows how many hours spend by the respondents daily on the

internet. We can see that 34 percentage spend around 3-4 hrs and 32 percentage

spend around 1-3 hrs and 10 percentage spend around 4-5 hrs respectively.

Figure 4.5

Figure showing Hours spent on internet daily

8

32

34

10

16

<1hr 1hr to 3hrs 3hrs to 4hrs 4hrs to 5hrs >5hrs

- 20 -

Table 4.6

Table showing Respondents paying attention to the internet

advertisements

Response Respondents Percentage

Yes 28 56

Sometimes 19 38

No 3 6

Total 50 100


The table shows that more people pay attention to the internet ads. Only a small

proportion of respondents do not pay attention to internet advertisements at all.

Figure 4.6

Figure showing Respondents paying attention to the internet

advertisements

56

38

6

Yes Sometimes No

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Table 4.7

Table showing Attitude of Respondents towards Advertisements

Attitude Respondents Percentage

Informative 15 30

Creates awareness 13 26

Entertaining 10 20

Irritating 4 8

Annoying 4 8

Waste of time 4 8

Total 50 100


As shown in Table 4.4, 30 percentage of the respondents indicated that

advertising was informative, with 26 percentage indicating it creates awareness.

3 percentage indicated that advertising was either irritating, annoying or a waste

of time. These findings mean that most of the respondents had a positive attitude

towards advertising and hence is a good indication for marketers.

Figure 4.7

Figure showing Attitude of respondents towards advertisements

30

26

20

8

88

Informative creates awareness Entertaining irritating Annoying Waste of time

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Table 4.8 Table showing Interference of online advertisements during other online

activities


Most of the time 17 34

Sometimes 31 62

Not really 2 4

Total 50 100


Based on Table 4.8, most respondents have conveyed that online advertisements

interfere during other online activities more often than not and this can lead to

annoyance. This is not a good sign for online advertising.

Figure 4.8

Figure showing Interference of online advertisements during other online

activities

17

31

2

Most of the time Sometimes Not really

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Table 4.9

Table showing Influence of internet advertisements on consumer buying

behaviour

Degree of influence Respondents Percentage

Large influence 11 22

Medium influence 26 52

Not sure 13 26

Total 50 100


As per the table, most of the respondents indicated that advertising only had a

medium influence. The other two cases are fairly similar but there are a few more

respondents who are not sure compared to those who think it is largely

influential. So, the conclusion is that internet advertisements have a good but not

great degree of influence on consumer buying behaviour.

Figure 4.9

Figure showing Influence of internet advertisements on consumer buying

behaviour

22

52

26

Large influence Medium influence Nots sure

- 24 -

Table 4.10

Table showing What the respondents mostly use the internet for

Particulars Respondents Percentage

Chatting and social networking

22 44

Email 6 12

Information 17 34

E-commerce 2 4

Downloading 3 6

Total 50 100


As shown in table 4.10, 11 percentage of the respondents used internet for email,

35 percentage for information and 45 percentage for chatting and social

networking, indicating that communication has been the fundamental value of

the internet to the consumers. There was a higher chance of interaction with

various online ads through chatting and social networking which influence

consumer buying behaviours as reflected by the diverse usage internet.

Figure 4.10

Figure showing What the respondents mostly use the internet for

44

12

34

4 305

101520253035404550

Chatting and socialnetworking

Email Information E-Commerce Downloading

Column3

- 25 -

Table 4.11

Table showing Most time spent on various modes of advertising

Modes Respondents Percentage

TV, Movies 18 36

Newspaper, Mags 4 8

Internet 28 56

Total 50 100


According to the findings in Table 4.11, a person spends more time on the

internet during his free time than that of TV and movies, radio and print medium.

Hence, the exposure of internet to an individual is at least 20 percentage more

than the reach of other medium.

Figure 4.11

Figure showing Most time spent on various modes of advertising

36

8

56

TV, Movies Newspapers,Mag Internet

- 26 -

Table 4.12 Table showing Watching the TV commercials during commercial break


Sometimes 23 46

Most often 16 32

Mostly not 11 22

Total 50 100


According to the findings, the majority of the respondents attested to watching

the TV/ commercials during commercial break. This implies that for television

commercials, around 32 percentage of consumers had a positive perception

towards advertising on TV in comparison to the 22 percentage that didn’t.

Figure 4.12

Figure showing Watching the TV commercials during commercial break

46

32

22

Sometimes Most often Mostly not

- 27 -

Table 4.13

Table showing Change of channel during commercial breaks


Never 12 24

Sometimes 9 18

Depends on ad 17 34

Often 6 12

Every time 6 12

Total 50 100


Table 4.13 shows that the degree of attractiveness of the advert 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.

Figure 4.13

Figure showing Change of channel during commercial breaks

24

18

34

12

12

Never Sometimes Depends on Ad Often Everytime

- 28 -

Table 4.14

Table showing Respondents checking/looking for an online advert


Yes 11 22

No 39 78

Total 50 100


In case of online advertising, majority of consumers ignored the advert

completely while only 22 percentage indicated that they would check an online

advert. 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.

Figure 4.14

Figure showing Respondents checking/looking for an online advert

21

79

Yes No

- 29 -

Table 4.15

Table showing Ad recall

Medium Recall

Respondents Percentage

TV Yes 42 84

No 8 16

Online ads Yes 27 54

No 23 46

Total 50 100


This is for the most recent ads that they had seen consciously or unconsciously.

In case of TV ads, 84 percentage remembered their most recent ads which is a

very good score in terms of creating awareness. In case of Online ads, only 54

percentage could remember their last interaction with the online ads. Therefore,

one can easily make out the reliability of online and TV ads recall values. The

study found out that TV ads are much reliable than internet advertising and other

forms of advertising.

Figure 4.15

Figure showing Ad recall

84

54

16

46

0

10

20

30

40

50

60

70

80

90

Tv Online Ads

Yes No

- 30 -

Table 4.16

Table showing Duration of page viewing is a strong determinant of the

ability to recall banner ads


To no extent 3 6

To little extent 12 24

To moderate extent 19 38

To a great extent 11 22

To a very great extent 5 10

Total 100 100


According to Table 4.16, majority of the respondents agree to moderate extent

that the duration of page viewing helps to recall banner ads. Only 3 percentage

thinks that it helps to no extent in Ad recall.

Figure 4.16

Figure showing Duration of page viewing is a strong determinant of the

ability to recall Ads

3

12

19

11

5

To no extent To a little extent To a moderate extent

To a great extent To a very great extent

- 31 -

Table 4.17

Table showing Animation content and shape of the banner Ad helps in Ad

recall


To no extent 0 0




To a very great extent 5 10

Total 50 100


Based on the table 4.17, majority of the respondents agree that the animation

content and shape of the banner Ad helps in Ad recall to a moderate extent and

none of the respondents think it has no impact.

Figure 4.17

Figure showing Animation content and shape of the banner Ad helps in Ad

recall

0

8

24

13

5

To no extent To a little extent To a moderate extent

To a great extent To a very great extent

- 32 -

Table 4.18

Table showing Mode of advertising influencing intention to buy product

Modes Respondents Percentage

Magazines and newspaper 4 8

Friends and relatives 40 40

TV Commercial 15 30

Online advertisements 6 12

Social Media – Blogs, forums, Social Networking sites

5 10

Total 50 100


Based on Table 4.18 above, the highest number of students, 40 percentage of the

respondents were influenced to buy a product based on information provided by

friends and relatives, with TV commercials being second. Online advertisements

were one of the least in influencing their decision at 12 percentage. This depicts

that traditional form of advertising has an edge over internet advertising in terms

of consumer preference to mode of advertising.

Figure 4.18

Figure showing Mode of advertising influencing intention to buy product

8

40

30

12

10

Magazines and newspapers Friends and relatives TV Commercial Online Ads Social media

- 33 -

Table 4.19 Table showing Effectiveness of internet ads in actual purchase decision


Definitely 33 66

To an extent 15 30

Not much 2 4

Total 50 100


Based on table 4.19, 66 percentage of the respondents purchased a product based

on information provided by internet advertisements. 4 percentage respondents

weren’t much influenced by internet advertising and didn’t make any actual

purchases after advertising. This indicates that internet advertising is a major

influencer behind purchase decision making.

Figure 4.19

Figure showing Effectiveness of internet ads in actual purchase decision

66

30

4

Definitely To an extent Not much

- 34 -

Table 4.20 Table showing Effect of repeated advertising on consumer behaviour


To an extent 6 12




Total 50 100


Based on table 4.20, 52 percentage respondents agreed that repeated advertising

affect consumer behaviour to little extent at least, 26 percentage respondents

agreed that repeated advertising affect consumer behaviour to a moderate extent.

This shows that repeated advertising serves as a reminder to a consumers and

influences buying behaviour.

Figure 4.20

Figure showing Effect of repeated advertising on consumer behaviour

12

52

26

10

0

10

20

30

40

50

60

To an extent To little extent To moderate extent To a great extent

Particulars

CHAPTER V

FINDINGS, SUGGESTIONS AND CONCLUSIONS

- 35 -

5.1 Findings

• Majority of the respondents are male.

Less than half of the respondents are female.

• 82 percentage of the respondents are aged between 18-20 years.

• 18 percentage of the respondents are aged between 21-23 years.

• 54 percentage of the respondents are fully aware of internet advertising

• Majority of the respondents spend 3-4 hrs on the internet daily.

• 76 percentage of the respondents indicated that they found online

advertisements either informative, entertaining or that it creates

awareness.

• Majority of the respondents conveyed that online advertisements

sometimes interfere during their other online activities.

• 52 percentage of the respondents conveyed that internet advertisements

have a medium influence on consumer buying behaviour.

• Majority of the respondents indicated that they mostly use the internet for

chatting and social networking.

• Majority of the respondents mostly use internet in comparison to TV,

movies or newspaper/magazines.

• 32 percentage of the respondents most often watch TV commercials.

• Less than half of the respondents mostly do not watch TV commercials.

• 34 percentage of the respondents change the channel during TV

commercials depending on the advertisement.

• 84 percentage of the respondents could remember their most recent TV

advertisements.

• 54 percentage of the respondents could remember their most recent

internet advertisements.

• Majority of the respondents conveyed that duration of page viewing helps

to recall banner ads to a moderate extent.

- 36 -

• 40 percentage of the respondents’ purchase decision were mostly

influenced by the information provided by their family and relatives.

• 66 percentage of the respondents’ purchase decision was definitely

influenced by internet advertisements.

4 percentage of the respondents’ purchase decision wasn’t much

influenced by internet advertisements.

• 52 percentage of the respondents conveyed that repeated advertising has

an effect on consumer behaviour to little extent.

5.2 Suggestions

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. The study also

found that internet advertising is effective in reach and creation of awareness and

recommends that the companies should invest more in internet advertising to

increase their market share and provide product information.

Finally, the study determined that there is a positive relationship between internet

advertising and consumer purchase decision and further recommends that

companies should conduct a market research on the different markets in various

countries to ensure that the internet advertising initiatives being implemented

suits the targeted markets to improve product purchases. This is because there

exist different contextual realities between different markets.

5.3 Conclusion

The objective of the study was to determine the effectiveness of internet

advertising on consumer behaviour using a sample of Christ college students.

Internet advertising was effective in providing higher reach and creation of

- 37 -

awareness. However, in spite of the diverse usage of internet and wide interaction

with various internet advertisements, fewer respondents were able to recall the

internet ads they had seen. This implies that the reliability of internet advertising

is quite low. The research established that TV advertising is more reliable than

internet advertising. The study concludes that internet advertising influenced

purchase decision of the customers to a moderate extent as only nearly half of

the respondents’ purchase decision were influenced. However, internet

advertising is a key determinant of purchase decision of the customers as they

consider it to be an interaction point between them and the company from which

they buy their products from. The study also concludes that internet advertising

has significant relationship with purchase decision of the consumers. The study

further concludes that internet advertising contributes most to the consumer

behaviour and that internet advertising is a significant factor in predicting the

consumer behaviour.

BIBLIOGRAPHY

- 38 -

References

Alvin, J. S, Lisa R. K, and Ernst, R. B (2002), Intermedia Substitutability and

Market Demand by National Advertisers, (20:4)

Baltas, G., (2003), Determinants of Internet advertising effectiveness: An

empirical study. International Journal of Market Research, 45: 505-513.

Bhat, S., Bevans, M. and Sengupta, S., (2002), Measuring users’ web activity to

evaluate and enhance advertising effectiveness. Journal of Advertising, 31: 97-

106.

Danaher, P.J. and Mullarkey, G.W., (2003), Factors affecting online advertising

recall: A study of students. Journal of Advertising Research, 43: 252-267.

Dreze, X. and Hussherr, F.X., (2003), Internet advertising: Is anybody watching?

Journal of Interactive Marketing, 17: 8-23.

Edwards, J., (2005), Pharma formulates plans to move marketing from TV.

Brandweek, 46: 5.

Faber, R.J., Lee, M. and Nan, X., (2004), Advertising and the consumer

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Gong, W. and Maddox, L.M., (2003), Measuring web advertising effectiveness,

Journal of Advertising Research, 43: 34-49.

Kent W., Ian, F., (2010), The Essential Guide to New Media & Digital Marketing

Kotler, P., (2004), Marketing management, 11th International edition– Prentice-

Hall, pp 706.

Korgaonkar, P. and Wolin, L.D., (2002), Web usage, advertising, and shopping:

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Koyuncu, C. and Lien, D., (2003), E-commerce and consumer’s purchasing

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Kurtz, D., (2010), Contemporary Marketing Mason, OH: South-Western

Cengage Learning.

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Menon, S. and Soman, (2002), Managing the power of curiosity for effective

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Rodgers, S. and Thorson, E., (2000), The interactive advertising model: How

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Books

Advertising: Scientific Advertising by Claude Hopkins

Business Research Methods by A Damodaran

Websites

www.wikipedia.org.com

www.researchgate.net

http://www.wikipedia.org.com/

APPENDIX

- 40 -

QUESTIONNAIRE

1. Name:

2. Year of study: (I, II, III)

3. Age: (18-20, 21-23)

4. Gender: (Male, Female)

5. Are you aware of internet advertising?

(Fully aware, Partially aware, Not at all aware)

6. How many hours do you spent on the internet on a daily basis?

(<1 hr, 1 hr to 3hrs, 3 hrs to 4 hrs, 4 hrs to 5hrs, >5 hrs)

7. Do you pay attention to internet advertisements?

(Yes, Sometimes, No)

8. What do you think about internet advertising?

(Informative, creates awareness, entertaining, irritating,

annoying, waste of time)

9. Do online advertisements interfere you during other online

activities?

(Most of the time, sometimes, Not really)

10. Do internet advertisements influence your buying behaviour?

(Large influence, medium influence, not sure)

11. What do you mostly use the internet for?

(Chatting and social networking, Email, Information, E-

commerce, Downloading)

12. What mode of advertising do you spend most time on?

(TV/Movies, Newspaper/Magazines, Internet)

13. Do you watch TV commercials during commercial break?

(Sometimes, Most often, Mostly not)

14. Do you change the channel during commercial breaks?

(Never, Sometimes, Depends on Ad, Often, Every time)

- 41 -

15. Do you look for an online advert?

(Yes, No)

16. Do you Recall Ads?

TV – (Yes, No)

Online Ads – (Yes, No)

17. Is duration of page viewing a strong determinant of the ability to

recall ads?

(To an extent, To little extent, To moderate extent, To a great

extent, To a very great extent)

18. Does animation content and shape of the banner Ad help in Ad

recall?

(To no extent, To little extent, To a moderate extent, To a great

extent, To a very great extent)

19. What influences intention to buy product the most?

(Magazines and newspapers, Friends and relatives, TV

commercials, Online advertisements, Social media)

20. Does internet advertising affect your purchase decision?

(Definitely, To an extent, Not much)

21. Does repeated advertising have an effect on consumer behaviour?

(To an extent, To little extent, To moderate extent, To a great

extent)

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