Research Proposal

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Consumer`s attitude toward online advertisement - Tarun Solanki

INTRODUCTION
Now we can see the rapid growth of IT has increased the importance of online advertising. Out of the innovations of the IT, internet is by far the most attracting considerable media. Moreover, the internet is emerging as the most important source of information, because of its ease and wealth of information. Furthermore, consumers shopping online may modify or change the way they search for information to take advantage of certain characteristic of the Internet. With the growth of internet, and the increasing trend of people using the internet for shopping and searching, the marketers are facing a lot of competition in order to keep in mind what the consumers are looking for and how to target them. In this research, the effect of online advertising on consumer buying behaviors will be studied. This research will identify the types of online advertisement, and then it is going to explore the impact that online advertising has on consumers buying behavior The reason this topic was chosen is because of the increasing trend of people towards internet. Moreover, its the IN thing these days as multinational companies such as P&G and Unilever are advertising online on social websites. This is because it is cost effective and consumes less time and they can target everyone through it. The problem at hand basically is that as compared to other countries, the trend of consumers shopping online is very less. This is because of the risk involved and because of the increase in online frauds.

The scope of the study is that the world is becoming a global village and hence the use of internet is increasing day by day. In another decade, the concept of online advertising will be very common and consumers will be reliant on internet even for the basic product.

Theoretical Framework

Consumers attitudes toward advertising have been considered important to track because they likely influence consumers exposure, attention, and reaction to individual ads (cf. Alwitt and Prabhakar, 1992) through a variety of cognitive and affective processes (Lutz, ). The internet is a communication medium, allowing companies to create awareness, provide information and influence attitudes. Advertising on the internet can be used in creating awareness of an organization as well as its specific product and service offerings. It also offers the opportunity to create awareness well beyond what might be achieved through traditional media (Belch & Belch 1998) According to researches, the feeling that people have to Internet advertising affects the perceptions of the people to products. Schlosser et al (1999) states that peoples attitude to Internet advertising is affected by in formativeness, Entertainment, and advertisement applications. From the other hand, desirable attitudes of the people to Internet advertising and their response to it in the frame of loveliness, being enjoyable, and in formativeness is considered as important (Schlosser et al 1999). The quality of information placed on a companys web site shows a direct influence on the customers perceptions of the company and the companys

products. Accordingly, information delivered to them via online media also needs to show qualitative features, such as accuracy, timeliness and usefulness for the consumer (Siau and Shen, 2003) Entertainment is also a crucial factor for internet marketing. It is essential that the message is concise and funny, and thus immediately captures consumers attention (Katterbach, 2002). Advertisement s credibility is highly correlated with its value. It refers to consumer s perception from correctness and believability of an advertisement. It also acts as the capability of prediction and meeting implied clear requirements of an agreement (i.e. a document is valid whether in printed or in on-line form) (Haghirian and Madlberger 2009). The primary goal of this study is to explore and gain an understanding of internet users beliefs about and attitude formation towards internet advertisement.

Literature review
What is online advertising? Online advertising, also called Internet advertising, uses the Internet to deliver promotional marketing messages to consumers. It includes email marketing, search engine marketing, social media marketing, many types of display advertising (including web banner advertising), and mobile advertising. Like other advertising media, online advertising frequently involves both a publisher, who integrates advertisements into its online content, and an advertiser, who provides the advertisements to be displayed on the publishers content. Other potential participants include advertising agencies that help generate and place the ad copy, an ad server who technologically delivers the ad and tracks statistics, and advertising affiliates who do independent promotional work for the advertiser. Advertising is an important part of a business model because it combines both creative and practical skills. East (2003) argues that advertising is the most interesting of all the business fields. Ads give your product life and they supposed to make product more appealing to the customer. Good advertisements can build a brand but bad advertisements can tarnish the perception of brand to customer.

Type of online advertisement


Banner Ads Banner ads attract customers attention through color, graphics, and, sometimes, animation. Because banners link to advertisers Web sites, they attract customers to your advertisers sites.

Email Messages Companies use the email model of advertising to cross-sell and up-sell their products, to try to acquire potential new customers, to persuade existing customers to buy again, to enhance customer loyalty, and to build long-lasting relationships with customers. Interstitial Ads Interstitial, or bridge, ads appear automatically as customers move between the pages of a Web site, making customers wait for another page to load. Customers do not choose to view these ads, but they can choose not to read them and advance to the next page. Online Directories This form of advertising allows companies to gain visibility through online directories that help customers find them easily, using a search engine. Online directories dont actually advertise a companys products or services, but do provide access to its Web site. Pay-Per-Click Ads Since advertisers pay only when customers click their ads, the companies that display these ads benefit only when customers click them. The pay-per-click (PPC) advertising model is the most common form of advertising on the Web. This model occurs on search engines, advertising networks, content Web sites, and blogs. Since advertisers pay only when customers click their ads, the companies that display these ads benefit only when customers click them. Many companies depend on this form of advertising to generate revenues.

Pop-Up Ads Pop-up ads appear in a separate window. They interrupt the flow of customers current tasks. The only way to move ahead is to close the window in which the ad appears or click the window containing the site that caused the ad to appear. Pop-Down Banner Ads On the other hand, pop-down ads appear beneath the content on a Web page, on a banner at the bottom of the page. Customers have to look at and click these ads to get rid of them. Search Engine Optimization This form of Internet marketing seeks to promote a companys Web site by increasing its visibility on search engine results pages. Customers usually click results that are highly ranked. Companies can target different segments like image search, local search, and industry-specific vertical search. Sky Scrapers Companies have begun to advertise and promote themselves and their products and services on social networking sites, where they can get direct access to a community of potential customers. Sky-scraper ads have the same function and properties as banner ads, but the rectangular boxes containing them have a vertical rather than a horizontal layout. These ads usually appear on the right side of a page and are linked to the advertisers Web site.

Social Networking Companies have begun to advertise and promote themselves and their products and services on social networking sites, where they can get direct access to a community of potential customers. This kind of advertising works best when it results from word-of-mouth or when a group exists for people who want to know what is happening with a company or product. Sponsorships To gain visibility, companies can sponsor a Web site or a certain section of a Web site where their ads appear. The Web has adopted this concept from the real world, because it provides scope for better business opportunities. The combination of activity-based sponsorship and media-related sponsorship is an interesting mix that innovation has extended in new directions.

Research methodology
Problem statement Consumer`s attitude toward online advertisement

Objective To know the consumers attitude toward online

advertisement.(entertainment, informativeness, irritation, credibility etc) To know the demographic profile of consumer (sex, age)

Research design
Sample unit minimum age 18 Sample Sample size Sampling method : : : Resident of the surat city 100 respondents In this research convenient sampling method ; people who have Internet knowledge with

is used to collect the primary data Instrument primary data Type of research : Questionnaire is prepared to collect the

Exploratory Research

Limitation of the research Sample size taken is very small. Respondent can be bias. This research is conducted only for study purpose.

Bibliography http://www.uxmatters.com/mt/archives/2009/08/online-advertising-factorsthat-influence-customer-experience.php#sthash.ZRKLOnlh.dpuf http://www.ukessays.com/essays/marketing/online-advertising-impact-onconsumer-purchase-behaviour-marketing-essay.php#ixzz2eWCL9j5U http://en.wikipedia.org/wiki/Advertising http://www.ukessays.com/essays/marketing/online-advertising-impact-onconsumer-purchase-behaviour-marketing-essay.php

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