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THE EFFECTIVENESS OF INTERNET ADVERTISING ON
CONSUMER BEHAVIOUR
A Report Submitted to
JIAJI UNIVERSIT! GA"IOR
I# $%rti%& Fu&'i&&me#t o' M%(ter o' Bu(i#e(( Admi#i(tr%tio#
At
MAHARAJA INSTITUTE OF MANAGEMENT AND TECHNO"OG!
Airport Ro%d) G*%&ior
Submitted To+ Submitted B,+
Mr(- SHAIFA"I CHAUHAN DEE$A. CHOUMA"
/F%0u&t,1 MBA IV /2345623471
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CERTIFICATE
This is to certify that Deep%8 C9oum%& student of MBA IV Seme(ter programme hascompleted Mr(- S9%i'%&i C9%u9%# Major Research Report entitled THE
EFFECTIVENESS OF INTERNET ADVERTISING ON CONSUMER
BEHAVIOURunder my guidance.
D%te+ SIGNATURE
$&%0e+ /F%0u&t, Guide1
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AC.NO"EDGEMENT
I, Deep%8 C9oum%& express my sincere gratitude to Mr(- S9%i'%&i C9%u9%#for giving me the
opportunity to work under her guidance on the project report THE EFFECTIVENESS OF
INTERNET ADVERTISING ON CONSUMER BEHAVIOUR. I would like to express my
gratitude towards Mr- A09%& $i&&%i /Dire0tor 1) Dr- Subeer B%#er:ee / De%# ; A0%demi0(1-
I would like to express my special gratitude and thanks to Faculty Memers and other friends for
their valuale suggestions in the execution of project preparation. I am also thankful to other staff
memers that guided and helped me at each and every step whenever I re!uired.
I also acknowledge " convey thanks to the lirary staff, computer department of MIMTfor their
kind and valuale support.
D%te+ DEE$A. CHOUMA"
$&%0e+ G*%&ior MBA IV Seme(ter
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DEC"ARATION
I, Deep%8 C9oum%& #tudent of M$% I& #emester of M%9%r%:% I#(titute o' m%#%
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ABSTRACT
%dvertisers are expected to shift and spend millions in internet advertising in the
coming years than T&, print ads and other traditional advertising media. 'ith the rapidgrowth in technology, the internet is ecoming an important one stop point for consumers
in finding most of their needs. $e it communication, entertainment, shopping, information
search, internet serves as a panacea for all their re!uirements. Many consumers are online
every day for their personal work, ut do they notice the ads, anners displayed on that
we page and most important their recall value. The current study investigated the
effectiveness of internet advertising on consumer ehavior y conducting a case study
of (niversity of )airoi #tudents. The study sought to determine the effectiveness of
internet advertising on reach and creation of awareness* to estalish the reliaility of
internet advertising through recall* and to determine the relationship etween internetadvertising and purchase decision.
The study used a case study research design. The target population was the (niversity of
)airoi students. The study used stratified sampling techni!ue to select + study
respondents. The primary data was collected using !uestionnaires. -ontent analysis was
used to analye !ualitative data while the !uantitative data was analyed using
descriptive statistics using #/##. Regression and -orrelation analysis was used to show
the relationships among the variales. The data was presented through percentages, means,
standard deviations and fre!uencies. The study found that internet advertising was effective
on reach and creation of awareness due to diverse usage, and estalished that its reliailityas an advertising media was low compared to T&. Internet advertising has significant
relationship with purchase decision of the consumers and therefore is a key determinant in
influencing consumer ehavior. The study determined that there is a positive relationship
etween 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 eing implemented suits
the targeted markets to improve product purchases.
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TAB"E OF CONTENTS
CHA$TER 4+ INTRODUCTION
+.+ $ackground to the study ..........................................................................................+
+.+.+ The -oncept of /romotion ................................................................................. ..0
+.+.0 The -oncept of Internet %dvertising.................................................................. ..1
+.+.1 The -oncept of -onsumer $ehavior ......................................................................2
+.0 Research /rolem .....................................................................................................3
+.1 Research 4jectives..................................................................................................5
+.2 &alue of the #tudy ....................................................................................................6
CHA$TER 2+ "ITERATURE REVIE
0.+ Introduction..............................................................................................................7
0.0 Theoretical Foundation of the #tudy........................................................................7
0.1 Internet %dvertising ................................................................................................+
0.2 Integrated Marketing -ommunication ....................................................................++
0.3 8ffectiveness of Internet %dvertising .....................................................................+0
0.5 -onsumer $ehaviour ..............................................................................................+1
0.6 Internet %dvertising and -onsumer $ehaviour .....................................................+5
CHA$TER THREE+ RESEARCH METHODO"OG!
1.+ Introduction............................................................................................................+7
1.0 Research 9esign.....................................................................................................+7
1.1 /opulation of the #tudy..........................................................................................+7
1.2 #ample 9esign .......................................................................................................+7
1.3 9ata -ollection ......................................................................................................+:
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1.5 &alidity and Reliaility..........................................................................................+:
1.6 9ata %nalysis .........................................................................................................0
CHA$TER FOUR+ DATA ANA"!SIS) RESU"TS AND DISCUSSION
2.+ Introduction............................................................................................................0+
2.0 $ackground information ........................................................................................0+
2.1 8ffectiveness of internet advertising on reach and creation of awareness.............01
2.2 Reliaility of internet advertising through recall ...................................................03
2.3 Relationship etween internet advertising and purchase decision.........................06
2.5 Inferential statistics ................................................................................................1
2.6 9iscussion of findings ...........................................................................................11
CHA$TER FIVE+ SUMMAR!) CONC"USION AND RECOMMENDATIONS
3.+ Introduction............................................................................................................13
3.0 #ummary of the #tudy ...........................................................................................13
3.1 -onclusion .............................................................................................................13
3.2 Recommendations..................................................................................................15
3.3 #uggestions for further studies...............................................................................16
REFERENCES
A$$ENDICES
A$$ENDI= I+ RESEARCH >UESTIONNAIRE
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"IST OF TAB"ES
Tale 2.+ 9istriution of the respondents y year of study .........................................00
Tale 2.0 9istriution of the respondents y age racket ...........................................00
Tale 2.1 ;ender distriution of the respondents ........................................................00
Tale 2.2 %ttitude towards %dvertisements.................................................................01
Tale 2.3 Time spent on various platforms of advertising ..........................................02
Tale 2.5 'atching the T& commercials during commercial reak ...........................02
Tale 2.6 -hange the channel during commercial reaks ...........................................03
Tale 2.7 checking an online advert ............................................................................03
Tale 2.: %d recall.......................................................................................................06
Tale 2.+ Mode of advertising influencing intention to uy product ........................06
Tale 2.++ #tatements on internet advertising and purchase decision.........................0:
Tale 2.+0 Model #ummary ........................................................................................1
Tale 2.+1 %)4&% of the Regression ........................................................................1+
Tale 2.+2 -oefficient of determination ......................................................................1+
Tale 2.+3 -orrelation matrix and the coefficient of determination ...........................10
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CHA$TER 4
INTRODUCTION
1.1 B%08
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-onsumers within =enya have een largely exposed to the traditional advertising forms
as the main media used y advertisers to provide information. Bowever, over the years
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 growth
and create new market share. The growth of internet advertising is oth gloally and
locally outpacing offline advertising. 'hile outdoor advertising is also experiencing
growth, it is not growing as rapidly as Internet advertising. It is on this asis that the study
investigated the effectiveness of online advertising ased on a consumer sample from
(niversity of )airoi to determine the relationship etween advertising and consumer
ehavior.
4-4-4 T9e Co#0ept o' $romotio#
/romotion is the component of a companyCs marketing system that involves delivery of
messages to target customers that emphasies the enefits of your rand, products and
services. % few common communication tools such as advertising are used in a
promotional plan. ;oals of promotion include uilding rand awareness, creating
favorale rand attitudes, gaining market share, inducing uying, uilding loyalty and
growing sales
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4-4-2 T9e Co#0ept o' I#ter#et Ad?erti(i#afferty
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The lack ox model is related to the lack ox theory of ehaviourism, where the focus is
not set on the processes inside a consumer, ut the relation etween the stimuli and the
response of the consumer. The marketing stimuli are planned and processed y the
companies, whereas the environmental stimulus is given y social factors, ased on the
economical, political and cultural circumstances of a society. The uyerEs lack ox
contains the uyer characteristics and the decision process, which determines the uyerEs
response.
2-7 Co#(umer Be9%?iour
%ccording to 'arner, consumer ehaviour is the study of individuals, groups, or
organiations and the processes they use to select, secure, and dispose of products,
services, experiences, or ideas to satisfy needs and the impacts that these processes have
on the consumer and society
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messages to consumers. %s consumers experience and respond to stimuli around them,
emotions arise. Their reactions manifest themselves as physiological changes they
experience as feelings. >ikewise, as people react to stimuli online. 4n the
other hand, when customers repeatedly experience the same stimuli, they may not
cause any emotional response. /eople ecome conditioned to ignore the everDpresent
ads on 'e sites, which is called ad lindness ee M.
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CHA$TER THREE
RESEARCH METHODO"OG!
@-4 I#trodu0tio#
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, target
population, research instruments, data collection and analysis methods used were
presented in the suse!uent sections.
@-2 Re(e%r09 De(i
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@- D%t% Co&&e0tio#
The research made use of primary data, which was collected using structured
!uestionnaire distriuted to the + respondents sampled from the (niversity of)airoi main campus, found outside the lirary, from classes, within the university
s!uare and within the hostels. The administered !uestionnaires were collected after
completion y the respondents on the same day and their responses used for analysis. The
!uestionnaire had oth open ended !uestions to enale guide the respondent through
filling of the !uestionnaire as well as proe them for more information.
@-7 V%&idit, %#d Re&i%bi&it,
-ontent validity refers to the extent to which an instrument represents the factors under
study. To achieve content validity, !uestionnaires included a variety of !uestions
on the knowledge of students on internet advertising and consumer ehaviour. %ll
the sujects completed the !uestionnaires in the presence of the researcher. This was
done to prevent sujects from giving !uestionnaires to other people to complete on their
ehalf. Reliaility can e ensured y minimiing sources of measurement error like
data collector ias. 9ata collector ias was minimied y the researcherEs eing the only
one to administer the !uestionnaires, and standardiing conditions such as exhiiting
similar personal attriutes to all respondents, e.g., friendliness and support. /ilot
testing was carried out y the researcher to identify any flaws on the !uestionnaire to
reduce errors of measurement and test for consistency.
@- D%t% A#%&,(i(
The study applied oth nominal and ordinal scale to measure a range of factors
estalishing the effectiveness of internet advertising on consumer ehaviour and an
interval scale in determining the relationship etween internet advertising and
consumer ehaviour. 9escriptive statistics was used to analye this data. The mean
responses, standard deviation and other relevant statistics were computed to etter
understand the data. The data collected was compiled and edited to check for logicalinconsistencies. The data was then coded according to the responses. Relationships
etween responses was assessed and presented using tales and graphs and analysis was
done using #/##. Regression and -orrelation analysis was applied in this study to reveal
relationships among variales in the findings from the data.
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CHA$TER FOUR
DATA ANA"!SIS) RESU"TS AND DISCUSSION
5-4 I#trodu0tio#
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 ehaviour the case of (niversity of )airoi #tudents. The study
ojectives were* to determine the effectiveness of internet advertising on reach and
creation of awareness* to estalish the reliaility of internet advertising through recall* and
to determine the relationship etween internet advertising and purchase decision. The study
targeted + respondents out of which all the + respondents responded and returned
their !uestionnaires contriuting to a response rate of +O. This response rate was
sufficient and representative and conforms to Mugenda and Mugenda
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#ource Field data.
%s shown in tale 2.+, the study sample was representative of all the years of study with
the third year students forming the highest proportion of the sample.
The respondents were also asked to indicate their age racket. The study findings areillustrated in Tale 2.0.
T%b&e 5-2 Di(tributio# o' t9e re(po#de#t( b, %
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5-@ E''e0ti?e#e(( o' i#ter#et %d?erti(i#< o# re%09 %#d 0re%tio# o' %*%re#e((
The first ojective of the study was to determine the effectiveness of internet
advertising on reach and creation of awareness. The study sought to estalish whether the
respondents were aware of various forms of advertisements adopted y various companies.Majority of the respondents
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T%b&e 5- Time (pe#t o# ?%riou( p&%t'orm( o' %d?erti(i#ikert scale where 3DTo a very great extent, 2D To a great
extent, 1DTo a moderate extent, 0DTo a little extent, and +DTo no extent. The mean and
standard deviations were generated from #/## and presented in Tale 2.++
Tale 2.++ #tatements on internet advertising and purchase decision
#tatements on Internet advertising and purchase
decision
Mean #tandard
deviation
Internet advertising influences customersE purchase
decision
2.0+ .3+1
duration of page viewing is a strong determinant of
the aility to recall anner ads
2.+1 .625
%nimation content, the shape of the anner ad, and
fre!uency of the ad
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00
Most companies provide a generic experience to all
customers rather than relying on customer analysis to
deliver a personalied experience.
2.+ .617
'hen customers weigh enefits, they ecome
emotionally involved with advertising and promotion.
2.3 .561
Repeated advertising messages affect consumer
ehavior. This repetition serves as a reminder to the
consumer.
1.:7 .726
#ource Field data.
The study estalished that Internet advertising influences customersE purchase
decision
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01
-oefficient of determination explains the extent to which changes in the dependent
variale can e explained y the change in the independent variales or the
percentage of variation in the dependent variale
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02
T%b&e 5-45 Coe''i0ie#t o' determi#%tio#
Model (nstandardied
-oefficients
#tandardied
-oefficients
t #ig.
$ #td. 8rror $eta
+
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03
T%b&e 5-4 Corre&%tio# m%tri %#d t9e 0oe''i0ie#t o' determi#%tio#
-onsumer ehaviour Internet advertising
-onsumer ehaviour
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CHA$TER FIVE
SUMMAR!) CONC"USION AND RECOMMENDATIONS
-4 I#trodu0tio#
This chapter presents summary of findings, conclusion and recommendations of the study
in line with the ojectives of the study.
-2 Summ%r, o' t9e Stud,
The study found that the effectiveness of internet advertising on reach and creation of
awareness was determined y the level of knowledge aout the existing platforms of
advertisements and time spent on these media. 4n average, a person spent more than 2
hours on the internet during his free time than that of T& and movies and print medium
and therefore the reach of internet medium is much etter than that of other media. %
higher percentage indicated that they were made aware of existence of various products
through internet advertising and therefore it was effective in creating awareness. The study
revealed that the aility of the respondents to recall the internet ads was low compared to
T&, and therefore even though the reach of internet is much higher than other forms, T&
ads are much more reliale than internet advertising 9anaher and Mullarkey
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advertising is a key determinant of purchase decision y the customers and that
internet advertising has an association with purchase decision of the consumer.
The ojective of the study was to determine the effectiveness of internet advertising on
consumer ehaviour using a sample of (niversity of )airoi students. %fter analysis
of the study findings, the study concludes that the effectiveness of internet advertisingon reach and creation of awareness was determined y the level of knowledge aout
the existing platforms of advertisements adopted y various companies in =enya
and time spent on various media. Internet advertising was effective in providing
higher reach and creation of awareness. Bowever, in spite of the diverseusage of
internet and wide interaction with variousinternet advertisements, fewer
respondents were ale to recall the internet ads they had seen. This implies that the
reliaility of internet advertising is !uite low. The research estalished that T&
advertising is more reliale than internet advertising therefore conforming with 9anaher
and Mullarkey
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Finally, the study determined that there is a positive relationship etween 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 eing implemented suits the targeted markets to
improve product purchases. This is ecause there exist different contextual realities
etween different markets 'olin
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REFERENCES
%lvin, @. #, >isa R. =, and 8rnst, R. $
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@ournal of %dvertising Research, 21 12D2:.
=ent '., Ian, F.,
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#chlosser, %.8., #havitt, #. and =anfer, %., .R., and $erndt, 8.R., .9. and =orgaonkar, /.,
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A$$ENDICES
A$$ENDI= I+ RESEARCH >UESTIONNAIRE
SECTION A ; BAC.ROUND INFORMATION
+. Lear of studyJ
Lear I Lear II Lear III Lear I& 4ther, #pecify
0. %ge ;roup
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T&, Movies
V +hr + D 0hrs 0 D 2hrs 2 D 5hrs W 5hrs )ewspaper,
Mags
V +hr + D 0hrs 0 D 2hrs 2 D 5hrs W 5hrs RadioV +hr+ D
0hrs 0 D 2hrs 2 D 5hrs W 5hrs Internet V +hr+ D 0hrs 0 D
2hrs 2 D 5hrs W 5hrs
7. 9o you watch the T& or listen to Radio commercials during commercial reakJ
Les )o
Informative Irritating
8ntertaining %nnoying
-reates awareness 'aste of time
:. I change the channel during commercial reaksX
)ever sometimes depends on ad often every time
SECTION C+ AD RECA""
+. 'hich is the last )ewspaperMagaine ad you rememerJ 'hich rand was itJ
++. 'hich is the last T& commercial you rememerJ 'hich rand was itJ
+0. )ame any three T& commercials you rememer lately
+.
0. 1.
+1. 9o you seecheck online adsmails when you surf the internetJ
)ever sometimes depends on ad often every time
+2. 'hich is the last online ad you rememerJ 'hich rand was itJ
+3. )ame any three online ads you rememer lately
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0. 1.
#8-TI4) 9 I)F>(8)-8R#, /R8F8R8)-8 %)9 /(R-B%#8 98-I#I4)
+5. Lou use the internet forJ
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$aners, /osters
4nline %ds $anners, 8mails,
+:. Bave you made any purchases after seeing internet adsJ
Les )o
0. 'hat is the relationship etween internet advertising and purchase decision,
/lease tick where appropriate 3DTo a very great extent, 2DTo a great extent, 1DTo a
moderate extent, 0DTo a little extent, and +DTo no extent.
+ 0 1 2 3
#tatements on Internet advertising
and purchase decision
To no
8xtent
To a
little
extent
To a
moderate
extent
To a
great
extent
To a
very
great
Internet advertising influences
duration of page viewing is a strong
determinant of the aility to recall
%nimation content, the shape of the
anner ad, and fre!uency of the ad
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++
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+0
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+1
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+2
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+3
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+5
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+6
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+7
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+:
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0
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0+
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00
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