meljun cortes online advertising thesis writing in mba
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Online Advertising in China: Beliefs
and Attitudes of Students as
Consumers
Thesis presented in partial fulfillment of the Requirements for
the Degree of Master in Business AdministrationJose Rizal University Graduate School
By
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Background of the Study
This research study aims to describe and
measure the beliefs and attitudes of
students as consumers towards Network
or online advertising in China.
China is now the worlds second largest
economic power, next to Americas; in
2011, it has dislodged Japan in the globaleconomic race.
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Background of the Study
Internet Usage in China has registered
impressive growth over the recent years,
both in urban and rural areas. Likewise,
online advertising has also grown
tremendously. However, to date, there
has been very little information about its
effectiveness as the newest advertisingplatform.
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Statement of the Problem
1. What is the profile of the respondents in terms of:1.1 Age
1.2 Gender
1.3 Income Range
1.4 Education
1.5 Residence
2. What are their beliefs about online advertising?
2.1 Does it increase their interest to seek products online?
2.2 Does it increase product awareness?
2.3 Does it create desire to purchase the advertised product?
2.4 Does it enhance the image of the advertised product?
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3. What are their attitudes towards online advertising?3.1 Are they in favor of online advertising?
3.2 Do they find the information adequate in online
advertising?
3.3 Do they find it useful in making a purchase - decision?
3.4 Is online advertising effective?
4. What are their behavioral responses to online advertising?
4.1 Will they continue to seek advertisements of products
online?
4.2 Will they buy products advertised online?
4.3 Will they recommend products advertised online?
Statement of the Problem
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5. Is there a positive significant relationship between
the respondents profile and their beliefs?
6. Is there a positive significant relationship between
the respondents profile and their attitudes?7. Is there a positive significant relationship between
beliefs and attitudes?
8. Is there a positive significant relationship betweenbeliefs and purchase decision?
9. Is there a positive significant relationship between
attitudes and purchase decision?
Statement of the Problem
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Significance of the Study
Primarily, this study hopes to fill the gap in
online advertising, which is a relatively
new advertising platform. Knowing the
beliefs and attitudes of customers to thisnew advertising platform is crucial in
crafting a strategic marketing program;
specifically in budgeting for the advertisingmix, which hugs the biggest chunk in
todays marketing.
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Theoretical Framework
IndependentVariables:
-Beliefs
-Attitudes
Dependent Variable:
(BehavioralResponse or Action)
Purchase-Decision
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Theoretical Framework
The study is based on the traditional
theory, which states that the customers
behavioral response (or Action in the AIDA
acronym) like making a purchase decisionis largely influenced by the beliefs and
attitudes of the customers on the
advertised product.
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Research Paradigm
Profile :
-Age
-Gender-Income range
-Education
-Residence
urban or Rural
Consumer
Behavior:
-Acceptability
(Searching)-Adequate
information
-Effectiveness
In terms
of support
andservice
Purchase
Decision
Product
Recommendation
INPUT PROCESS PRODUCT OUTPUT
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Research Paradigm
The research paradigm asserts that the
demographic profile of respondents affect
the beliefs and attitudes of the consumer,
which in turn affect the purchase-decision.In psychology, beliefs affect the attitudes,
which in turn, are then manifested in the
behavioral response of the customers, likein making a purchase decision.
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Research Methodology
1. Expository and Descriptive
2. A Researcher-Crafted Instrument in
Chinese was used to obtain the raw data,
which shall be pre-validated for contentvalidity and reliability; sample size, n = 100
Chinese graduate students from Metro
Manila.3. SPSS Version 16.0 shall be used for
statistical analysis and interpretation
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Population, Locale, and Sample
The population of the respondents are theChinese college and graduate students in
Metro Manila, Philippines. The sample (n=100)
comprised the Chinese college and graduate
students in the Philippines, from differentuniversities in Metro Manila, who were also
asked to help in the distribution of the
questionnaire.
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Conclusions
1. The respondents consist of 60 percent male
and 40 percent female; majority of whom are
coming from middle income families and are
taking up MBA and DBA in universities in MetroManila; their age range is from 20 to 32 years
old, with 80 percent belonging to age range 23
to 32 years old. All respondents have access
to the Internet and are computer-literate, andare exposed to online advertising. (See Table 4
to 12 from pages 37 to 40)
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Conclusions2. Descriptive statistics showed that majority of the
respondents are in favor of online advertising; in fact, 50
percent rated favorability of online advertising as high,
and another 50 percent, rated it as very high (Table 13
to Table 15 is from pages 40 to 41).
3. Likewise, majority of the respondents gave high to veryhigh ratings for adequacy/completeness and
effectiveness of online advertising (Table 16 to Table 22
from page 42 to 44).
4. In other words, with respect to consumer attitudes aboutproducts advertised online, the general consumer
attitude, as reflected in their ratings of favorability,
adequacy and effectiveness, is from high to very high
ratings. (Table 23 to 32 from Pages 45 to 48) 15MELJUN P. CORTES MELJUN P. CORTES
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Conclusions
5. On the null hypothesis about the correlation between
demographic profile and consumer attitude, the
respondents demonstrated weak correlations, as the
Pearson r on all five aspects of the profile, age, gender,
income range, educational level, and residence,urban/rural (Tables 33 to 37 from pages 49 to 53)
showed low values corresponding to weak correlations
per the Appendix B matrix on Pearson r values and
their interpretations. Therefore, the null hypothesis onthe issue that there is no significant relationship
between the demographic profile and consumer
attitudes on online advertised products is accepted.
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Conclusions
6. The weak correlation established in this study
between the demographic profile and consumer
attitudes on online advertising of products, only
shows that there are other factors that aresignificantly affecting the development of
consumer attitudes towards products advertised
online. These other factors may be both
internal or external to the respondents, butwhich could be the subject of another study.
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Conclusions
7. However, strong correlations were established between
consumer attitudes and purchase decisions. Majority of
the respondents who demonstrated high ratings on
attitudes towards online advertising showed high ratings
on purchase decisions (i.e., whether respondents willrecommend or buy the products advertised online). In
Table 38 on page 54 those who rated online advertising
as effective had a Pearson r = .816, significant at the
0.01 level (2-tailed); while in Table 39 on page 55, thosewho rated online advertising as both adequate and
effective, had Pearson r equivalent to .802 and .816,
respectively; both significant at the 0.01 level (2-tailed).
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Conclusions
8. These strong correlations between consumer attitudesand purchase decisions are well documented in
mainstream literatures in marketing using traditional
media, such as television, radio, and print, but not on
relatively new advertising platform like online advertising.
9. The regression analyses showing high goodness of fit
between the consumer attitudes and purchase decisions.
likewise validate the strong correlations between the said
variables, Tables 43 -45 (from pages 58 to 59).
10.The areas of concerns revealed in this study pertain to
pricing and availability of products advertised online,
where both got low ratings (Tables 28-29 on page 47).
Product quality got relatively, high rating.19MELJUN P. CORTES MELJUN P. CORTES
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Recommendations1. In view of the results of this study, present marketers in
China who are still in the traditional mode of advertisingwill have to revisit and rethink their advertising program
and budget allocations on their promotion mix, with
respect to television, radio and print. The growing
popularity of the Internet both in Urban and Rural China,is a potent force to reckon with concerning the
development of promotional mileage and impact to
consumers. Marketers may have to reallocate their
budget from the traditional media to online advertising,
the newest platform in marketing today. The results of
this study showed that indeed, there is a strong
correlations and regressions between consumer
attitudes and purchase decisions with respect to the
online advertising. 20
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Recommendations
2. Marketers may have to reinvent the wheel withrespect to penetrating the consumers through
the online advertising technology. Basically,
present-day marketers have more or less
mastered the A to Z of the traditionalpromotions mix, but they have yet to develop
and acquire mastery in the arts and science of
online advertising. With the robust economy of
China, and its huge consumer base, betterallocation of advertising resources by
marketers would significantly contribute to the
companys bottom line, among others.21MELJUN P. CORTES MELJUN P. CORTES
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Recommendations
3. A change of paradigm by marketers withrespect to consumer education is also a must-
do for marketers. With the high accessibility of
information available through the Internet,
consumers in the Digital Age are more awareand proactive. Marketing online must therefore
religiously stick to the tenet of truth in
advertising, because consumers could easily
validate the information on products advertised
online through the wealth of information in the
Internet, such as Google and Yahoo, among
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Recommendations
4. Government regulators, such as the department of
trade and industry in China, or the AMA counterpart in
China, may have to be proactive in initiating measures
to manage, if not regulate, the growth and development
of online advertising in their market, at least, to protectthe consumers and the larger society, in general.
5. For future researchers, who would like to go into the
deep, are cordially invited to validate the findings of this
study, perhaps with a standardized instrument and alarger sample size to include other consumer types,
besides university students
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Recommendations
6. Online advertising is here and now. The
trend is overwhelming, its onslaught in the
marketing arena is unstoppable. Philip
Kotler and company have been caughtflat-footed by its powerful rampage. In this
regards, a development program matrix,
pertaining to the subject tackled in thestudy is hereby proposed, Table 46 on
page 66
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Online Sell and Shopping in
China
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Online Sell and Shopping in
China
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Introduction about Taobao
It is the shopping and sell website named Taobao which
is very popular in China, in includes anything that we can
buy or sell, it change people shopping style. In Taobao, it
is very convenience that we can cost 3 to 5 minutes to
finish the trade. The images/icons, visuals/colorsincrease interest to seek products online. Majority of the
respondents answer that the price of goods/services in
Taobao is reasonable. If we are not pleased with
goods/service that we already buy, then we can talk overwith seller through Alitong (chat tool) for replacement the
goods/service. If sellers have cheat behavior, cusetomer
can have right protection.
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introduction about Taobao
In Taobao website, we can see some recommendation
goods/service through colorful picture that attract
customer eyes. It enhance desire to buy, we can find
online advertising can help Increase sales. If want to buy
same kinds of things, we can seek, then Taobao will givemore choice, they are Classified by difference kinds of
brand. Majority of the respondents think that surfing/
search online increase awareness. In term of customer
Reponses of online product, if buyer get the goods anduse already, they can give evaluation in Taobao which
can give some advises for other buyers.
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How to ensure money of
customer safe in Taobao?
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It is a payment system named Alipay that we can login.
Launched in 2004, Alipay (www.alipay.com) is a
commonly used third-party online payment solution in
China. It provides an easy, safe and secure way for
millions of individuals and businesses to make andreceive payments on the Internet. The preferred online
payment tool of Internet merchants in China, Alipay
provides an escrow payment service that reduces
transaction risk for online consumers.
How to ensure money of
customer safe in Taobao?
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Alipay guarantee transaction
process
Choosingproduct
Payment toAlipay
Receivingand
confirmed
Alipaypayment tothe seller
DealSuccessful
UnmatchedItems
Deal closed
Alipay refundto buyer
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Thank you!
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