THE EFFECTIVENESS OF

INTERNET ADVERTING ON
CONSUMER BEHAVIOR

Submitted by: Neelakshay Pandey

A3906414059
B.B.A (GENERAL) 2014-2017
 CONTENTS
• Abstract
• Introduction
• Research methodology
• Data analysis
• Results
• Conclusions
• Future scope
• References
 ABSTRACT
• With the dynamic and rapid growth in technology, the internet is becoming an hub for consumers for
finding a suitable solution of their demand and needs.
• In the dynamic world of today consumers use internet every day for their professional or personal work,
and the main question arises here do the consumers coming over internet notices the advertisements, pop
ups , banners that are displayed on that webpage, and the most important thing is they recall those
advertisements to make buying decisions in their daily life.
• The research has been done as a case study on the Students of Amity University. The research determines
the effectiveness and impact of internet advertising on reach & creation of awareness among consumers, to
establish the accuracy of internet advertising by recall, and to determine the relationship between purchase
decision and internet advertising. The research is done through a case study research design where the
target population was the students of Amity University.
• Internet advertising influences the consumer purchase or buying decision. The research proves us that there
exist a positive relationship between internet advertising and consumer buying decision.
 INTRODUCTION
• Internet advertising is a form of promotion that uses the Internet and Worldwide 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 email 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.

Research Problem

• Advertisers are expected to shift and spend millions in internet advertising in the coming years than TV,
print ads and other traditional advertising media. Internet advertising broadly consists of various
commercial content for mats delivered by video clip, print, and audio, either solicited or unsolicited and
includes company web sites, corporate logos, e-mail messages, pop-ups, banner ads, skyscraper ads,
buttons, interstitials, hyperlinks, dynamic media, and interactive games.
Research Objectives

• The objectives of the study were to:

i. Determinetheeffectivenessofinternetadvertisingonreachandcreationof awareness.
ii. Establish the reliability of internet advertising through recall.
iii. Determine the relationship between internet advertising and purchase decision.
 RESEARCH METHODOLOGY
Research design

• This study used descriptive research. Descriptive research involves gathering data that describe events and
then organizes, tabulates, depicts, and describes the data collection. It often uses visual aids such as graphs
and charts to aid there ads in understanding the data distribution and therefore offered a better clarification
on online advertising, and ultimately give a clear picture on the effectiveness and reliability of online
advertising and its relationship to purchase decision.

Population of the Study

• Amity University has over 63,000 registered students. This study targeted under graduate students of the
Amity University because of their background diversity and exposure to advertising with a larger
percentage using the internet. Students of the Amity University are provided with the Internet access
through wire less connection, and therefore, the chances for them accessing online advertising via social
media are very high. On the same basis of their diverse background, only undergraduate students from
the Main campus were chosen for this study.
Sample design

• Stratified sampling technique was used to select the units for study. 100, module and II undergraduate
students of the Amity University Main campus was used as a study sample to represent the population of
consumers. This sample was stratified into each of the four years of study and respondents were randomly
selected from each stratum to come up with there preventative sample of 100 for the entire population.
This was available sampling technique since it gave the advantages of focusing on important sub
populations and allowed the use of different sampling technique for different subpopulations in improving
the accuracy of estimation.

Data Collection

• The research made use of primary data, which was collected using structured questionnaire distributed to
the100 respondents sampled from the Amity University main campus, found out side the library, from
classes, within the university square and within the hostels. The administered questionnaires were collected
after completion by the respondents on the same day and their responses used for analysis. The
questionnaire had both open ended questions to enable guide there spending through filling of the
questionnaire as well as probe them for more information.
 DATA ANALYIS
• The results were presented on the effectiveness of internet advertising on consumer behavior: the case of
Amity University Students. The study objectives were to determine the effectiveness of internet advertising
on reach and creation of awareness; to establish there liability of internet advertising through recall; and to
determine the relationship between internet advertising and purchase decision. The study targeted 100
respondents out of which all the 100 respondents responded and returned their questionnaires contributing
to a response rate of 100%. This response rate was sufficient and representative and conforms to Mugenda
and Mugenda(2003) stipulation that are response rate of 50% is adequate for analysis and reporting; a rate
of 60% is good while a response rate of 70% and over is excellent. This commendable response rate was
due to extra efforts that were made via courtesy calls made to remind the respondents to fill-in and return
the questionnaires.
 RESULTS

Distribution of the respondents by year of study

Frequency Percentage
First year 20 20
Second year 29 29
Third year 33 33
Fourth year 18 18
Total 100 100
 Distribution of the respondents by age bracket

Age bracket frequency Percentage

19-25 yrs 82 82
26-35 yrs 18 18
Total 100 100

Gender distribution of the respondents

frequency Percentage
Male 72 72
Female 28 28
Total 100 100
 Attitude towards Advertisements

Frequency Percentage
Informative 35 35
Creative awareness 31 31
Entertaining 25 25
Irritating 3 3
Annoying 3 3
Waste of time 3 3
Total 100 100

Time spent on various platforms of advertising

Mean Standard Deviation

TV, movies 2.42 1.241
Newspaper 1.11 1.372
Radio 1.03 0.927
internet 4.21 0.515
 Watching the TV commercials during commercial break

frequency percent
Yes 70 70
No 30 30
Total 100 100

Checking an online advert

frequency percent
Yes 21 21
No 79 79
Total 100 100
Internet usage
 Ad recall
Recall
Frequency Percent
TV Yes 84 84
No 16 16
Online Yes 30 30
ads No 70 70
Total 100 100

Mode of advertising influencing intention to buy product

Frequency Percent
Magazines and newspaper 17 17
Friends and relatives 40 40
TV Commercial 29 29
Online advertisements 6 6
Social Media – Blogs, forums, Social Networking sites 8 8
Total 100 100
 Statements on internet advertising and purchase decision
Statements on Internet advertising and purchase decision Mean Standard
deviation
Internet advertising influences customers’ purchase decision 4.21 0.513

duration of page viewing is a strong determinant of the ability 4.13 0.746

to recall banner ads
Animation content, the shape of the banner ad, and frequency 3.92 0.841
of the ad (repetition) leads to higher advertising recall

Companies should aim to strengthen customer interactions 4.11 0.62

with advertisements on the Web
Most companies provide a generic experience to all customers 4.01 0.738
rather than relying on customer analysis to deliver a personalized
experience.
When customers weigh benefits, they become emotionally 4.05 0.673
involved with advertising and promotion.

Repeated advertising messages affect consumer behavior. This 3.98 0.847

repetition serves as a reminder to the consumer.
 Model Summary

Model R R Square Adjusted R Std.Errorof the

Square Estimate
1 0.919 0.845 0.789 0.6273

ANOVA of the Regression

Model Sum of Df Mean Square F Sig.

Squares
1 Regression 2.534 50 1.267 9.475 .000a
Residual 9.307 200 2.327
Total 11.841 250

Coefficient of determination
Model Unstandardized Standardized t Sig.

Coefficients Coefficients

B Std. Error Beta

1 (Constant) 1.147 0.2235 5.132 0.000

Internet advertising 0.752 0.1032 0.1032 7.287 .000

 Correlation matrix and the coefficient of determination
Consumer behavior Internet advertising
Consumer behavior (r) (p) Sig. 1.000
(2 tailed)
Internet advertising (r) (p) (2 0.894 0.018 1.000
tailed)
 CONCLUSION
• The study concludes that internet advertising influenced purchase decision of the customers to a moderate
extent as only nearly half of the respondents were influenced purchase decision. 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 behavior and that
internet advertising was a significant factor in predicting the consumer behavior. In addition, there is a
positive relationship between consumer behavior and internet advertising. This implies that companies
should invest more in internet advertising to increase their market share and 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.
 FUTURE SCOPE
• Since this study explored the effectiveness of internet advertising on consumer behavior: the case of Amity
University Students, the study recommends that a similar study should be done in a consumer market for
comparison purposes and to allow for generalization of findings on the effectiveness of internet advertising
on consumer behavior.
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