A study on purchase behavior ofcustomer on online advertisements. Mr. Anup Raj, Student, Department of PGDM, Kristu Jayanti College ABSTRACTInternet has grown on a large scale in each of itsapplications and number of users because of its unique flexibility andcustomization to their characteristics. Now that it has been a very useful toolfor communication, entertainment, education, and e-commerce. Extraordinarychange offered a significant impact on the daily life of information technology.On the business side, the Internet has transformed the business of the day.
Itallows retailers to offer an unlimited range of products and services for allconsumers from all over the world at any given time. The Internet has emergedas a mediator advertising. Many companies turned to the Internet to advertisetheir products and services.
The Internet as a direct marketing channel for themost important. Companies global market and inject billions of dollars intoadvertising on the Internet to get the most return on investment inadvertising. On the consumer side, the Internet has given consumers morecontrol over access to information about products and services. Keywords: internet,information, companies, advertising 1. IntroductionThere are many factors that contribute to consumerpull for online content consumer is the one who decides when, where, what, andhow much commercial content they wish to view. Internet allows consumers accessto an unlimited range of products and services from companies all over theworld, and it has reduced the time and effort they spend on shopping. Consumersplay a much more active role in the search for information on the Internet withsome goal in mind, and that goal can influence individual behavior andresponses to information and advertising on the Internet. With the rapiddevelopment in the computer industry, it has made many companies on theInternet as part of a combination advertising media to take advantage of Internettechnologies.
The Internet has become a popular advertising platform becausethe marketers have found that the Internet has greater flexibility and controlover the advertising material amount. Since the Internet can be used as a toolfor effective marketing communication, both scholars and practitionersinterested in understanding how to take full advantage and maximize the valueof this means of communication. Thisstudy attempts to identify the effectiveness of online advertising by usingMalaysian sample.
According to a study conducted by the Nielsen researchcompany, Malaysians spent RM1.8 billion shopping on the Internet in 2010, andis expected to triple in the next three years (Star, 2011). The research,commissioned by PayPal this figure, also found that Malaysians spend more onlocal sites with a deal worth RM825 million, compared with foreign sites thatonly recorded RM627 million in receipts. Nielsen study polled 400 Malaysianonline shoppers aged 18 years and over in January and February 2011 fortransactions over the Internet, and mobile shopping in the last 12 months.
Malaysian online shoppers bought mostly airline tickets, financial services,fashion and cosmetics from local sites while been doing more than buying books,music and movie downloads on foreign sites. Given the increasing use of theInternet in the country, it’s time to study and understand how they interactMalaysian Web surfers with online advertising. 1.
1 Reviewof literatureUnderstanding consumerattitude towards advertising(2002)The following study was done in theUSA. Literature in advertising and information systems suggests that ads inboth traditional media and the internet is either easily ignored by theaudience or is perceived with little value. Effectivenessof online advertising(2016)The study reveals that the mosteffective media ads is online ads. Internet advertising offers increasedawareness of companies, easy to distribute info, targeting customers. Theeffectiveness of online advertising in purchasing decision (2007)The internet has grown tremendouslyin both with applications and number of users due to its unique characteristicsof flexibility, interactivity and personalization. it has been a very usefultool for communication , entertainment, education and electronic trade.
Banneradvertising measuring effectiveness and optimizing placement (2001)The economic value of onlineadvertising is controversial. One report estimates the annual run rate ofonline advertising spending at its end of 2000 to be 7 to 8 billion, with theimplication that a medium with zero share in 1992 now commands about 5% of theUS advertising spending. The average rate of click through from a banneradvertising sites is in general declining and at about 0.3% is substantiallylower than the average rate of response to direct mail advertising. Theimpact of online advertising on consumer purchase behavior based on Malaysianorg (2009)Online advertising business usedelectronic commerce tools to build marketing strategy, establish customerrelationship theories on advertising and customer purchase behavior because ofthe potential marketing segmentation. online ads include contextual ads onexamine banner ads , rich media ads, social networking ads, online classifiedads and marketing emails like spam. Howmuch can behavioral targeting help online advertising? (2009)A systematic study on the ads clickthrough log of a commercial search engine to validate and compare different butstrategies for online advertising .
touse the best knowledge this work is the first systematic study for BT on the real worlds ads clickthrough log in ACA demand. Measuringthe effectiveness of online advertisement (2013)Over the last 5 years advertisingbudgets allocation to internet media have grown. In 2012 the internet willrepresent 26% of total advertising expenditure worldwide and this figure couldreach 31% in next 4 years.in todays cut throat competition the emphasis is onprice reduction and all companies are trying to reduce cost by whatever meanspossible.
Internetadvertising and consumers behavior in the purchase of products (2013)Marketing communication includesvarious components such as sales promotion, public relations, direct marketingand advertising that is an important component of marketing, especiallymarketing studies acts of seeks to identify consumption practices and consumersbehavior pattern in order market and sales increases. Theeffectiveness of e-advertisement towards customer purchase intention (2013)The emergence of internettechnology has created a plenty of opportunities for marketers and all whichare involved in vertical environment to carry on their business based on webadvertising, with rapid growth of the internet and the globalization of theworld companies have accepted and adopted new information and communicationtechnology in performing their activities. Theeffectiveness of internet advertising on consumer’s behavior (2013)Internet has grown tremendously inboth its applications and number of users due to its unique characteristics offlexibility. Interactivity and personalization.
It has been a very useful toolfor communication, entertainment and education. 1.2 Objectives· To determine reasons whichinfluence these consumers to buy online. · To find out the tolerance level of consumers towards Internet ads. Analytical tools and techniques Statistical Package for the SocialScience (SPSS) was used for conducting various parametrictests such as Frequency analysis, Cross Table analysis, Independent Samplet-test and One way Anova test for data analysis and interpretation. Dataanalysis and interpretations Case Processing Summary Cases Valid Missing Total N Percent N Percent N Percent Gender * Education 50 100.
0% 0 0.0% 50 100.0% Gender * Education Cross tabulation Education Total under graduation post-graduation others Gender Male Count 9 22 0 31 % within Gender 29.0% 71.
0% 0.0% 100.0% Female Count 4 13 1 18 % within Gender 22.2% 72.2% 5.6% 100.
0% Others Count 1 0 0 1 % within Gender 100.0% 0.0% 0.0% 100.0% Total Count 14 35 1 50 % within Gender 28.0% 70.
0% 2.0% 100.0% Chi-Square Tests Value Df Asymp. Sig. (2-sided) Pearson Chi-Square 4.572a 4 .
334 Likelihood Ratio 4.809 4 .307 Linear-by-Linear Association .012 1 .
913 N of Valid Cases 50 a. 5 cells (55.6%) have expected count less than 5. The minimum expected count is .02. Interpretation:the first table explains that there are 50 valid respondents and none of themare missing.
Second table explains the tabulation between gender and education,29% are undergraduates and 71% are postgraduates. From the chi square testresults it is evident that the significance value is greater than 0.05 for thetest which implies there is no statistically significant difference in thestudy. One-Sample Statistics N Mean Std.
Deviation Std. Error Mean how much influence do you feel ads have over your buying behavior? 50 1.6000 .57143 .08081 One-Sample Test Test Value = 50 T Df Sig. (2-tailed) Mean Difference 95% Confidence Interval of the Difference Lower Upper how much influence do you feel ads have over your buying behavior? -598.
919 49 .000 -48.40000 -48.5624 -48.2376 Interpretation:study was conducted among 50 respondents and the results says that the averageinfluence of ads have over buying behavior is 1.600 with deviation of .
57143. thet test shows that the t value is -598.919 and significance value is 0.
000 lessthan .05 which implies that there is a statistically significant differenceamong the means of the variables, therefore reject the null hypothesis. Descriptive Statistics Mean Std. Deviation N Education 1.7400 .48697 50 Do you like advertisements 1.1000 .30305 50 Correlations Education Do you like advertisements Education Pearson Correlation 1 -.
373** Sig. (2-tailed) .008 N 50 50 Do you like advertisements Pearson Correlation -.373** 1 Sig. (2-tailed) .008 N 50 50 **. Correlation is significant at the 0.
01 level (2-tailed). Interpretation: table of Pearson correlation coefficient states that there is a statisticallysignificant strong positive correlation between education and liking towardsads. Findings and conclusionsFindingsThestudy has been aimed at finding out the effectiveness of online advertising onpurchasing products. Data has beencollected from 50 respondents belonging to different age categories. The datawas analyzed using SPSS tool and the following inferences have been drawn onthe various tests run. · The first table explains that there are50 valid respondents and none of them are missing.
Second table explains thetabulation between gender and education, 29% are undergraduates and 71% arepostgraduates. From the chi square test results it is evident that thesignificance value is greater than 0.05 for the test which implies there is nostatistically significant difference in the study.
· Study was conducted among 50 respondentsand the results says that the average influence of ads have over buyingbehavior is 1.600 with deviation of .57143.
the t test shows that the t valueis -598.919 and significance value is 0.000 less than .05 which implies thatthere is a statistically significant difference among the means of thevariables, therefore reject the null hypothesis.
· Table of Pearson correlation coefficientstates that there is a statistically significant strong positive correlationbetween education and liking towards ads. ResultsThe objective of the study was todetermine the effectiveness of internet advertising on consumer behaviour.After analysis of the study findings, the study concludes that theeffectiveness of internet advertising on reach and creation of awareness wasdetermined by the level of knowledge about the existing platforms ofadvertisements adopted by various companies and time spent on various media.Internet advertising was effective in providing higher reach and creation ofawareness.The research established thatonline advertising is more reliable than traditional advertising. The study concludes thatinternet advertising influenced purchase decision of the customers to amoderate extent as only nearly half of the respondents were influenced purchasedecision.
However, internet advertising is a key determinant of purchase decisionof the customers as they consider it to be an interaction point between them andthe company from which they buy their products from. The study also concludes thatinternet advertising has significant relationship with purchase decision of theconsumers. The study further concludes that internet advertising contributesmost to the consumer behavior and that internet advertising was a significantfactor in predicting the consumer behaviour. In addition, there is a positiverelationship between consumer behaviour and internet advertising. This impliesthat companies should invest more in internet advertising to increase theirmarket share and conduct a market research on the different markets in variouscountries to ensure that the internet advertising initiatives being implementedsuits the targeted markets to improve product purchases. ReferenceAlvin, J.
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