mba research project report (1)

7/25/2019 Mba Research Project Report (1)

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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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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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-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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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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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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+1


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+2


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+3


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+6


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mba research project report (1)

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