Final Project

IMPACT OF ONLINE ADVERTISING

ON CONSUMER BUYING BEHAVIOR
WITH THE MEDIATION OF
CONSUMER AWARENESS &
PERCEPTION
University of Central Punjab

JULY 25, 2019

Submitted To: Prof M. M. Chishti

Submitted By:

Shumaila Shehzad (G2F17MCOM0001)

Wajiha Idrees (G2F17MCOM0003)
Kainat Gul (G2F17MCOM0023)
Ayesha Nawab (G2F17MCOM0029)
 TABLE OF CONTENT
1 INTRODUCTION ................................................................................................................. 2

2 PROBLEM STATEMENT ....................................................................................................3

3 OBJECTIVE OF STUDY ......................................................................................................4

4 SIGNIFICANCE OF STUDY.................................................................................................4

5 LITERATURE REVIEW........................................................................................................4

6 MODEL .............................................................................................................................7

7 HYPOTHESIS ......................................................................................................................8

8 METHODOLOGY.................................................................................................................9

9 DATA ANALYSIS..............................................................................................................10

10 DISCUSSION.....................................................................................................................

11 FINDINGS..........................................................................................................................

12 CONCLUSION……………………………………………………..................................

13 REFERENCE……………..................................................................................................

1
 EFFECT OF ONLINE ADVERTISEMENT ON BUYING
BEHAVIOR OF CONSUMERS

Introduction:

Marketing includes research, targeting, communications (advertising and direct mail) and
often public relations. Marketing is to sales as plowing is to planting for a farmer—it
prepares an audience to receive a direct sales pitch. Mary Ellen Bianco – Director Marketing
&Communications, Getzler Henrich & Associates LLC. According to the American
Marketing Association (AMA) Board of Directors, Marketing is the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at large.

It is a source of communication with customers and urges them to purchase a product or avail
a service to satisfy their needs and wants. There are four P’s of marketing i.e.; price, product,
promotion and place. To communicate with people advertisement plays an important role. It
is related with Promotion of a product. There are many ways to promote a product like online
advertisement, billboards advertisement and so on.

Advertisement is the main source to communicate by the products to its targeted consumers.
To create the product awareness in the mind of consumers we take the supported
advertisement. The strongest medium of communication is television. The prime time is very
precious because majority of audience can be targeted at that time. It can influence the minds
of buyers their attitudes as well as life style and culture can also affected by the
advertisements (Latif &Abideen, 2011). Advertisement is a non personal communication of
information. It is persuasive in nature about products, ideas and services which are identified
by the sponsors with the help of mass media (Datta, 2008).

The aim of advertisement is to introduce, popularized and spread the ideas about the product
among the general public (Ramaswami&Namakumari, 2004). The media’s choice depends
upon the nature of message and targeted audience. But many companies prefer to use the
mass media to communicate their message to their audience (Etzel et al, 2008). In many
strategies of advertisement one strategy is outdoor advertisement.

2
Its basic purpose is to increase the purchase rates, shoppers etc. Outdoor advertisement is
open area advertisement (Woodside, 1990). Advertisement should be cost efficient. The use
of bill boards is also emerging but they should have contained upon the less information. The
reader has to feel easy to get idea at a glance. It is relatively less expensive but it is required
to be well planned and organized. It should be in the sense to target a lot of audience at
lowest cost per person (Pride and Ferrell, 2009).

It is also a way to create emotional bound with a product and consumers become more loyal
with their product. Through advertisement they came to know the updated and innovated
specs. Some organizations do not attach importance in advertising their products and this has
adverse effect on their output in terms of sales of product. Others use different advertising
media like television, internet (face book; email) newspaper, billboard, magazine etc to
convey their product message to their target audience. Companies spend major part of their
budget on advertising strategies to promote their products/services. These advertisement
strategies influence consumer buying behavior (Abideen& Latif, 2011)

The main purpose of online advertisement is to give awareness regarding products. In

Pakistan it is going to be an emerging technique as well. Even the small scale business also
prefers to do advertise their business. The behavior of consumers is also affected by the
demographic, geographical and psychological factors. Such as culture, family background,
brand image, income, life styles etc also impact upon the consumers buying behaviors. Many
industries pay high amounts to advertise their products in order to be more successful and
increase the sales of their business. This research paper put the light upon the buying
behavior of consumer which is influenced by the online advertisement with the help of
moderator, consumer awareness and consumer perception.

Problem Statement:

Although advertisements are influencing a strong impact upon the buying behavior of
consumers, but the problem is that which media has to be used at lowest possible cost to
target more and more consumers. Organization has to pay heavy cost for the purpose of
advertisement. But heavy cost is not always the solution of all problems. We have to consider
what steps we should have to take to online advertise our products? Level of online
advertisement has to be mentioned first

3
Objective of the Study:

The objective of this research paper is as follows:

 To identify the impact of online advertisement upon the buyer’s awareness

 To identify the impact of online advertisement on consumers perception
 To identify how consumers perception and awareness impacts on the consumer’s
buying behavior
 To identify the impact of online advertisement on consumer’s buying behavior
 To identify the impact of information provided by online advertisement on buying
behavior

Significances:

This research paper basically helps to know the impact of online advertisement upon buying
behaviour. We will try to know the various factors which can influence the purchasing
decision of the buyer. This research work will help the reader to understand the consumer’s
behaviors, attitudes and perceptions. This study will also be helpful for the cosmetics industry
to adopt an appropriate strategy to attract a large number of their targeted customers with the
help of online advertisement.

Literature Review:

Online advertising is a marketing strategy that involves the use of the Internet as a medium to
obtain website traffic and target and deliver marketing messages to the right customers.
Online advertising is geared toward defining markets through unique and useful applications.
Since the early 1990s there has been an exponential increase in the growth of online
advertising, which has evolved into a standard for small and large organizations. Online
advertising is also known as Internet advertising or Digital Advertising
(https://www.techopedia.com/definition/26362/online-advertising).

Online advertisement is a way to provide the new opportunities for the marketers to motivate the
consumer, to purchase the product. It helps to support the business and marketing segments as well.
The expand the business at global level; advertisement is the best way to introduce your product in the
whole world. The scholars discover online advertising are influence by convenience factor, cost

4
saving factor, customize products and services factors (Azad, N. and M. Shamsabadi, 2012). The
mission oriented perceptive and rational shopping experience is the keys of success in development of
online advertisement.

The emotional aspect of an online advertisement is to keep into consideration the human rights section
to improve the processing of physical shopping in society (Kim, B. and I. Han 2011). In online
advertisement it is not enough when we are bond with the mission but it is represents the emotional
satisfaction and motivation to purchase a product during shopping process. While, few revisions focus
about the impact of rational stylishness and purchase ability on online advertising approaches. In
short, the finding covered Malaysian consumers based of attitude purchasing behavior positively and
connect with online advertising request by using the telecommunication method in across the world
(Brocato, E.D., C.M. Voorhees, and J. Baker, 2012).

An online advertisement affects the consumer’s motivation form many perceptive like happiness,
enjoyment, fantasy, sensuality on the global marketing. The profit which is created by the online
advertisement is experiential and emotional to incentive consumer in purchasing behavior (Laplante,
A. and J.S. Downie, 2011). The major advantage of online advertisement is to reduce the cost of
advertisement; it has ability to gain the broad audience. One more benefit it support to support the
statistics. Analysingonline advertising campaigns have become somewhat of a science, as there are so
many ways to trace measure and test results. These analytics make it lots more comfortable to
optimize online advertising campaigns and estimate return on investment (ROI) ( Kotwal, 2008)

Consumer Awareness is an act of making sure the buyer or consumer is aware of the
information about products, goods, services, and consumers rights. Consumer awareness is
important so that buyer can take the right decision and make the right choice. Consumers
have the right to information, right to choose, right to safety. Let us learn more about
Consumer rights, responsibilities and consumer awareness in detail.

Many studies show that consumers’ awareness and knowledge impose important impact on
various types of effective consumers’ behaviours. Consumers face a restricted number of
alternatives that may vary over time and reflect the marketing strategy of the firm.An
increasing aspect of the literature has focused on the elements of the consumer choice set or
the subset of products from which the consumer selects one product to purchase.(Barroso and
Llobet 2012).Awareness and knowledge has become critical element in changing the attitude
and behavior of consumers towards products, which in turn is required to make the growth in
the markets. Some studies has been reported the knowledge, awareness, attitude and behavior
of consumers towards products in both developed and developing countries. Many studies

5
show that consumers’ awareness and data impose necessary impact on differing types of
effective consumers’ behaviors.(Dommeyer and Gross2009) examines the role of consumers’
awareness and data within the space of consumers’ personal information invasion by direct-
marketers. Consumer awareness is related to the scope of that customers are tuned in to their
rights and responsibilities within the marketplace (Rousseau& Venter 1995). Clients who are
aware of their rights and duties make realistic purchase selections and are included towards
misuse by way of groups. As purchasers grow to be aware about their rights and obligations,
they come to be a force to be expected with within the development and presenting of
products and services. As they whinge and searching for reimbursement, consumers play
a sizeable role in any economic System (Ishaq&Zabil 2012). The data of client awareness
permits policy manufacturers to develop complete product policies that make sure that
merchandise are labeled properly, that buyers will perceive vital info conferred in
advertising(Abdolvanp,Farzin el al.2016).The operate of ethical labeling is to saliently
develop the moral qualities into product options so customers become aware and have data on
the crucial facet that are expected to influence consumers’ selections or behaviors(Ishak and
Zabil 2012).

The perceptions customers have of an enterprise and its products or provider have a dramatic
effect on buying conduct. that’s why companies spend a lot money advertising and marketing
themselves, honing their customer service and doing something else they are able to to
favorably have an impact on the perceptions of goal customers. with cautious planning and
execution, a commercial enterprise can have an effect on those perceptions and foster
worthwhile consumer behaviors (Stan Mack,2019).

“Purchaser perception and shopping for behavior is largely measures the improvement of
perception thru special variables and discover the ones elements which stimulate shopping for
decision of client. Purchaser utilization and buying of any product in large part rely on their
perception about the product. Notion develops through how efficaciously product has been
marketed. in recent times firms are putting their first-rate efforts in marketing for you to get
client interest and high quality impact on customer’s thoughts ,consumer perception is
likewise identified by means of the shade, form, and flavor of the product (Syeda Quratulain
Kazmi,2012)

Perception, according to Gregory et al (1995), is a set of manner with the aid of which an
individual will become privy to and interpret records about the environment. if anyone

6
perceived everything the way, matters could be a lot less difficult, of course, the opposite is
actual. furthermore, people frequently assume that, reality is goal that, all of us perceive the
identical things within the identical manner.

According to Markin (1995), perception is worried with the manner wherein we select and
apprehend sensory information presented by way of our environment. In different phrases
notion can be described as a complex system by using which humans choose, prepared and
interpret sensory stimuli into significant image of the arena. Markin continues that, some of
stimuli constantly reaching customers sensory organs from the surroundings they pick out
positive stimuli to which they attend, they organized those stimuli so they come to be
comprehensible, but their interpretation of sensory stimuli entails more than simply receiving
and processing information by using attitudes and beliefs and their beyond learning as is by
the character of the stimuli themselves.

Courtland L, Bovver and John J. Thrill (1992, P 153) have the view about perception; earlier
than purchasers can buy a product, they have to be conscious that it exist. This is a process
that begins with being uncovered to the stimuli that constitute a particular product, getting to
these stimuli and decoding them to shape an average belief of the object. The steps involve
exposure, interest and interpretation.

Model:

Consumer Awareness
H1 H4
(Moderator)

Online Advertisement Consumers Buying

Behaviour
(Independent Variable)
(Dependant Variable)

Consumer’s Perception
H2 (Moderator) H3

Hypothesis:
H1:

7
There is strong relationship between online advertisement and consumer’s awareness.
H2:
There is strong relationship between online advertisement and consumer’s perception.
H3:
There is strong relationship between consumer’s perception and consumers buying behaviour
H4:
There is strong relationship between consumer’s awareness and consumers buying behaviour.

Methodology:
The rules which are going to follow in this research are as follows:

3.1 Research Design:

We are going to do research upon the impact of online advertisement on consumer buying
behaviour and also check the affect of moderator on dependent variable. The moderators are
consumer’s awareness and consumer’s perception.

3.1.1 Study Type:

Our type of study is primary data. Because towards customers we have direct approach. We
are doing to approach the residents of Gujar khan.

3.1.2 Study Approach:

We are going to follow deductive approach to extract results. We based upon existing data
and deduct results from it. For this purpose we deeply studied the research papers of different
authors related to the field of advertisement, buying behaviour of customers. Consumer’s
perception and awareness.

3.1.3 Method of Study:

In this particular research quantitative approach has been used and the data was the primary
one gathered from the users of internet.

3.2 Population:

8
Population is whole number of people with similarity. For our study the consumer of whole
world are population for us but we are going to focus upon the population of Pakistan
specifically.

3.2.1 Unit of Analysis:

The target people from the whole population are consumers. We will focus upon how the
online advertisement will influence upon consumers perception, awareness and then buying
behavior of them.

3.3 Sampling:

Sampling can be defined as the represented part of the selected population to extract results.
We have approached various respondents of rural and urban areas of the Gujar khan.

3.3.1 Sampling Techniques & Research Instrument:

A questionnaire was developed to gather the data from the respondents. A survey was
conducted in various places of rural and urban areas to gather the primary data from the users
of internet. The data gathered from the authentic source and it was clearly defined to them
that this response will only be using in research purpose. Convenient sampling technique has
been used. It means we have approach those people which are in our excess. Total questions
in the questionnaire are 35. To measure the variable of online advertisement there are 8
questions. 9 questions to measure consumers buying behavior, 7 questions for consumer’s
awareness and 11 questions to measure consumer’s perception. 5 likert questionnaires have
been used to measure these variables.

3.3.2 Sample Size:

A size of 180 respondents was taken under consideration. Sample has been taken in the
premises of Pakistan. In these respondents’ students, businessmen, employees and other
professionals are included.

3.3.3. Research Approach:

In this particular research quantitative approach has been used and the data was the primary
one gathered from the users of internet. Variables are qualitative but we have assigned them
quantity to measure them easily.

9
 3.3.4. Statistical Tools and Analysis:

The data gathered from the respondents were put in the SPSS (version 20) to analyze the
various factors and dependability of the variables. Regression analysis has been used.

4.1 Data Analysis:

Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Gender 180 1.00 2.00 1.7167 .45187
Age 180 1.00 5.00 1.1722 .56756
Country 180 1.00 1.00 1.0000 .00000
Province 180 1.00 1.00 1.0000 .00000
City 180 1.00 2.00 1.0222 .14782
Region 180 1.00 2.00 1.2889 .45451
Profession 180 1.00 4.00 2.8000 .51132
MI 180 1.0 5.0 4.050 1.5033
Valid N (listwise) 180

Frequencies
Statistics
Gender Age Country Province City Region Profession MI
Valid 180 180 180 180 180 180 180 180
N
Missing 0 0 0 0 0 0 0 0

Frequency Table
Gender

Frequency Percent Valid Cumulative

Percent Percent

Male 51 28.3 28.3 28.3

Valid Female 129 71.7 71.7 100.0

Total 180 100.0 100.0

10
 Age

Frequency Percent Valid Cumulative

Percent Percent

18-25 160 88.9 88.9 88.9

26-33 13 7.2 7.2 96.1

34-41 4 2.2 2.2 98.3

Valid 42-49 2 1.1 1.1 99.4

50 and
1 .6 .6 100.0
above

Total 180 100.0 100.0

Country

Frequency Percent Valid Cumulative

Percent Percent

Valid Pakistan 180 100.0 100.0 100.0

Province

Frequency Percent Valid Cumulative

Percent Percent

Valid Punjab 180 100.0 100.0 100.0

City

Frequency Percent Valid Cumulative

Percent Percent

Gujar Khan 176 97.8 97.8 97.8

Valid Rawalpindi 4 2.2 2.2 100.0

Total 180 100.0 100.0

11
 Region

Frequency Percent Valid Cumulative

Percent Percent

Urban 128 71.1 71.1 71.1

Valid Rural 52 28.9 28.9 100.0

Total 180 100.0 100.0

Profession

Frequency Percent Valid Cumulative

Percent Percent

Businessman 5 2.8 2.8 2.8

Employee 30 16.7 16.7 19.4

Valid Student 141 78.3 78.3 97.8

Other 4 2.2 2.2 100.0

Total 180 100.0 100.0

MI

Frequency Percent Valid Percent Cumulative

Percent

<25000 25 13.9 13.9 13.9

25000-
13 7.2 7.2 21.1
35000
Valid
35000-
9 5.0 5.0 26.1
50000

>50000 14 7.8 7.8 33.9

12
 N/A 119 66.1 66.1 100.0

Total 180 100.0 100.0

4.2 Reliability statistic:

Reliability Statistics
Cronbach's Alpha No of Items

.890 4

13
References:
Dommeyer, C. J., & Gross, B. L. What consumers know and what they do: an investigation
of consumer knowledge, awareness, and use of privacy protection strategies. Journal of
Interactive Marketing, 17 (2) 34-51, (2009).
Ishak, S. and N. F. M. Zabil (2012). "Impact of consumer awareness and knowledge to
consumer effective behavior." Asian Social Science8(13): 108
Barroso, A. and G. Llobet (2012). "Advertising and consumer awareness of new,
differentiated products." Journal of Marketing Research49(6): 773-792.
Rousseau, G. G., and D. J. L. Venter. Measuring consumer awareness in Zimbabwe. Journal
of Industrial Psychology 21 (1): 18–24, (1995).
Ishak, S., and N. F. M. Zabil. Impact of consumer awareness and knowledge to consumer
effective behavior. Asian Social Science 8 (13): 108–114, (2012).
Azad, N. and M. Shamsabadi, An investigation on important factors influencing customer
repurchase: A case study of Airline agencies. Management Science Letters, 2012. 2(3):
p. 781-786.

Kim, B. and I. Han, The role of utilitarian and hedonic values and their antecedents in a
mobile data service environment. Expert Systems with Applications, 2011. 38(3): p.
2311-2318.

Laplante, A. and J.S. Downie, The utilitarian and hedonic outcomes of music information-
seeking in everyday life. Library & Information Science Research, 2011. 33(3): p. 202-
210.

Brocato, E.D., C.M. Voorhees, and J. Baker, Understanding the Influence of Cues from Other
Customers in the Service Experience: A Scale Development and Validation. Journal of
retailing, 2012. 88(3): p. 384-398.

Kotwal N, Gupta, N & Devi, A (2008), Impact of TV advertisements on buying pattern of

adolescent girls, sJournal of Social sciences, vol. 16 no. 1

14