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    THE EFFECTIVENESS OF INTERNET ADVERTISING ON

    CONSUMER BEHAVIOUR: THE CASE OF ST. ANDREWS

    COLLEGE STUDENTS

    BY

    Shahvir Pate

    A RESEARCH PRO!ECT SUBMITTED IN PARTIAL

    FULFILLMENT OF THE RE"UIREMENTS FOR THE AWARD

    OF THE DEGREE OF MASTER OF COMMERCE#

    UNIVERSITY OF MUMBAI

    OCTOBER# $%&'

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    DECLARATION

    This research project is my original work and has not been submitted for

    examination to any other university.

    Signed_________________ Date _______________

    SHH!"# $T%&&

    D'()'(*+,)-((

    This research project has been submitted for examination with my approval as

    the /niversity Supervisor.

    Signed_________________ Date _______________

    D#. 0/ST/S 1/2345"6

    ST. 2D#%7S 84&&%9%

    ii

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    DEDICATION

    This study is dedicated to my family especially my wife Terry and my 1um for

    their constant encouragement and patience throughout my academic struggle

    and my mentor Terry &ittle for his continuous financial support thus reali:ingmy long cherished dream.

    iii

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    AC(NOWLEDGEMENTS

    The completion of this study would have been impossible without the material

    and moral support from various people. "t is my obligation therefore to extendmy gratitude to them. ;irst of all " thank the lmighty 9od for giving me good

    health6 and guiding me through the entire course.

    " am greatly indebted to Dr. 0ustus 1unyoki who was my supervisor for his

    effective supervision6 dedication6 availability and professional advice. " extend

    my gratitude to my lecturers who taught me in the 1

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    ABSTRACT

    dvertisers are expected to shift and spend millions in internet advertising in the

    coming years than T!6 print ads and other traditional advertising media. 7ith the

    rapid growth in technology6 the internet is becoming an important one stop point for

    consumers in finding most of their needs. to establish the reliability of internet advertising through recall> and to

    determine the relationship between internet advertising and purchase decision. Thestudy used a case study research design. The target population was the St. ndrews

    8ollege students.The study used stratified sampling techni=ue to select ( study

    respondents. The primary data was collected using =uestionnaires. 8ontent analysis

    was used to analyse =ualitative data while the =uantitative data was analysed using

    descriptive statistics using S$SS. #egression and 8orrelation analysis was used to

    show the relationships among the variables. The data was presented through

    percentages6 means6 standard deviations and fre=uencies. The study found that

    internet advertising was effective on reach and creation of awareness due to diverse

    usage6 and established that its reliability as an advertising media was low comparedto T!. "nternet advertising has significant relationship with purchase decision of the

    consumers and therefore is a key determinant in influencing consumer behaviour.

    The study determined that there is a positive relationship between 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 being implemented suits

    the targeted markets to improve product purchases.

    v

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    TABLE OF CONTENTS

    Declaration...................................................................................................................ii

    Dedication...................................................................................................................iii

    cknowledgements...................................................................................................

    ivbstract.........................................................................................................................v

    Table of contents........................................................................................................vi

    &ist of table?s.............................................................................................................viii

    CHAPTER ONE: INTRODUCTION.........................................................................(

    (.(

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    @.' !alidity and #eliability........................................................................................(+

    @., Data nalysis.......................................................................................................-

    CHAPTER FOUR: DATA ANALYSIS# RESULTS AND DISCUSSION............-(

    *.( "ntroduction..........................................................................................................-(

    *.-

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    LIST OF TABLES

    Table *.( Distribution of the respondents by year of study.................................--

    Table *.- Distribution of the respondents by age bracket...................................

    --

    Table *.@ 9ender distribution of the respondents................................................--

    Table *.* ttitude towards dvertisements...........................................................-@

    Table *.A Time spent on various platforms of advertising ...................................-*

    Table *.' 7atching the T! commercials during commercial break..................-*

    Table *., 8hange the channel during commercial breaks................................. -A

    Table *.B 8hecking an online advert......................................................................-A

    Table *.+ d recall.....................................................................................................

    -,Table *.( 1ode of advertising influencing intention to buy product................-,

    Table *.(( Statements on internet advertising and purchase decision............-+

    Table *.(- 1odel Summary.....................................................................................@

    Table *.(@ 24! of the #egression....................................................................@(

    Table *.(* 8oefficient of determination.................................................................@(

    Table *.(A 8orrelation matrix and the coefficient of determination...................@-

    viii

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    CHAPTER ONE

    INTRODUCTION

    &.& Ba0+1r)2- t) the 3t24

    "nternet has grown tremendously in both its applications and number of users due to

    its uni=ue characteristics of flexibility6 interactivity6 and personali:ation. "t has been a

    very useful tool for communication6 entertainment6 education6 and electronic trade

    G5oet al.,-*> 5oyuncu and &ien6 -@. The revolutionary change brought forth by

    information technology has an important impact on the daily lives. "t has transformed

    the way we do business by allowing retailers to offer unlimited range of products and

    services to all consumers from around the world at any point in time. The "nternet has

    emerged as an advertising medium GSilk et al.,-(. 1any companies have turned

    to the "nternet to advertise their products and services> and the "nternet is deemed to

    be the most significant direct marketing channel for the global marketplace G;aber et

    al., -*> 5oet al.,-*> 5orgaonkar and 7olin6 --. 8ompanies are pouring

    billions of dollars into "nternet advertising to obtain greater return on investment on

    ads G%dwards6 -A> 0oineset al.,-@.

    The "nternet has given consumers more control in accessing information onproducts and services. There are several factors that contribute to consumers

    pull for online contentIconsumers are the one who decide when6 where6

    what6 and how much commercial content they wish to view G5orgaonkar and

    7olin6 --. The "nternet enables consumers to access an unlimited range of

    products and services from companies around the world6 and it has reduced

    the time and effort they spend on shopping G5oet al.,-*.

    8onsumers play a much more active role in searching for information online with

    some goal in mind6 and that goal can influence individual behaviors and responses to

    online information and advertisements GSmith6 --. 7ith the rapid advancement in

    the computer industry6 many companies have made the "nternet as part of their

    advertising media mix to take advantage of the online technologies G8alisir6 -@.

    The "nternet has become a popular advertising platform because marketers found

    that the "nternet possess greater flexibility and control over the advertising materials

    GDucoffe6 (++'. Since the "nternet can be used as an efficient marketing

    (

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    communication tool6 both scholars and practitioners are interested in

    understanding how to take full advantage and maximi:ing the value of this

    communication medium G#odgers and Thorson6 -.

    8onsumers within 5enya have been largely exposed to the traditional advertising

    forms as the main media used by advertisers to provide information. However6 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 environment6 influence and drive

    purchases6 fuel new growth and create new market share. The growth of internet

    advertising is both globally and locally outpacing offline advertising. 7hile outdoor

    advertising is also experiencing growth6 it is not growing as rapidly as "nternet

    advertising. "t is on this basis that the study investigated the effectiveness of online

    advertising based on a consumer sample from St. ndrews 8ollege to determine the

    relationship between advertising and consumer behaviour.

    &.&.& The C)-0e5t )/ Pr),)ti)-

    $romotion is the component of a companyJs marketing system that involves

    delivery of messages to target customers that emphasi:es the benefits of your

    brand6 products and services. few common communication tools such as

    advertising are used in a promotional plan. 9oals of promotion include

    building brand awareness6 creating favorable brand attitudes6 gaining market

    share6 inducing buying6 building loyalty and growing sales G5urt: -(.

    To reach its promotional goals6 a company develops an effective promotional mix6 which

    is a combination of strategies including advertising6 personal selling6 sales promotion6

    direct marketing and public relations through a cost effective allocation of resources

    G#obinson6 (++(. "n large companies6 the marketing department has many roles. "t

    determines the promotional mix6 establishes the budget6 allocates resources6 coordinates

    the campaign6 supervises any outside resources6 and measures the results.

    1anufacturers often develop a promotional mix for each segment of the distribution

    channel. To promote a product to large retailers that sell its products6 a manufacturer

    -

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    might want to use a mix of personal selling6 advertising6 and buying discounts. This is

    known as the push policy.GThe manufacturer pushes the product to the retailer. The

    same manufacturer might use a different promotional mix of local and national

    advertising6 inKstore displays6 sales promotion6 and public relations to reach

    consumers. The pull policy directs promotions towards the consumers. "t is used to

    create customer interest and demand. This study focuses on advertising as one of

    the strategies in the promotional mix used by companies within 5enya.

    dvertising is the communication relayed from companies to persuade an audience

    to purchase their products. This communication is usually through various forms of

    paid media KK T! and radio commercials6 print ads6 billboards and more recently6

    product placements6 social media and online ads. ds are placed where advertisers

    believe they will reach the largest6 most relevant audience. 8ommercial businesses

    within 5enya e.g. /nilever6 Safaricom use advertising to drive the consumption of

    their product6 while nonKprofit organi:ations may place ads to raise awareness or

    encourage a change in behavior or perception.

    &.&.$ The C)-0e5t )/ I-ter-et Averti3i-1

    "nternet advertising is a form of promotion that uses the "nternet and 7orld 7ide

    7eb for the expressed purpose of delivering marketing messages to attract

    customers. %xamples of online advertising include contextual ads on search engine

    results pages6 banner ads6 #ich 1edia ds6 Social network advertising6 online

    classified advertising6 advertising networks and eKmail marketing6 including eKmail

    spam. 4nline 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. "f the advertiser has opted for a

    response feature6 the viewer may then choose to visit the brand?s website6 or interact

    with the advertiser through other touch points such as email6 chat or phone.

    #esponse to brand communication is instantaneous6 and conversion to business is

    very high. This is because in contrast to conventional forms of interruptive

    advertising6 the viewer has actually chosen to see the commercial.

    @

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    8onsumer can gather information about products and services6 communicate

    with other consumers and firms for related products and services6 and sometimes

    complete transactions. s the "nternet session is a self selected environment of

    the consumer6 the promotion message will be more effective. "nternet advertising

    is also capable of providing an experiential environment to the consumer through

    virtual reality interfaces thus allowing the consumer to experience some of the

    features of products before making the purchase decision. 8onsumer can provide

    feedback content about the product6 to the firm and to other consumers.

    positive feedback becomes a good promotion for the marketer. marketer can

    even exploit a negative feedback by solving the consumer?s problem and

    showing the commitment of the organi:ation to satisfying consumer needs.

    8onsumer can also add Lcollective contentM to the medium through discussion

    forums like the virtual communities GDucoffe6 (++'. "n 5enya6 online advertising

    has gained increased popularity with more people spending time online.

    &.&.6 The C)-0e5t )/ C)-32,er Behavi)2r

    The term Nconsumer behaviorN refers to actions and decisions that factor into a

    customerJs purchase. #esearchers6 businesses and marketers study consumer

    behavior to understand what influences a consumerJs shopping preferences and

    selection of products and services. 1ultiple factors affect consumer behavior6

    among them economic status6 beliefs and values6 culture6 personality6 age and

    education G5otler6 -*. ;indings on consumer behavior are used to develop

    methods and products that will boost company performance and sales.

    8ustomers are becoming more powerful6 more knowledgeable and more

    sophisticated6 and research into modern consumer behaviour is increasingly

    important for businesses according. dvertising to attract consumers6

    providing better environment6 product6 services and policies is important in

    improving today?s consumer experience to support businesses in retaining

    customers. This study seeks to determine and explain the effectiveness of

    internet advertising in stimulating consumer response.

    *

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    The number of internet users in 5enya was estimated at (.- million in -(( according to

    8ommunications 8ommission of 5enya G885. This majority of internet users are youth

    especially university students6 who regularly use the social network sites through their

    mobile phones6 either searching for information or chatting with friends online. 1any

    students from the /niversity 2airobi have embraced the evolution in technology6 and

    adopted latest variety of android products6 tablets6 ipads6 and the popular models of

    Samsung galaxy for easy access of the internet. The growth has been fuelled by the

    implementation of the "8T policy by the government and the introduction of the fibre optic

    network offering fast internet connections.

    This study used a sample of these university students from the main campus

    to determine and explain the relationship between internet advertising and

    consumer behaviour. The students come from a diverse background and were

    ideal in studying various characteristics related to consumer behaviour.

    Students are enrolled in different study programmes through fulltime and

    module ""6 with some operating from outside the institution while others have

    residence within the university leading to variability in exposure to advertising.

    &.$ Re3ear0h Pr)7e,

    dvertisers are expected to shift and spend millions in internet advertising in

    the coming years than T!6 print ads and other traditional advertising media.

    "nternet advertising broadly consists of various commercial content formats

    delivered by video clip6 print6 and audio> either solicited or unsolicited and

    includes company web sites6 corporate logos6 eKmail messages6 popKups6

    banner ads6 skyscraper ads6 buttons6 interstitials6 hyperlinks6 dynamic media6

    and interactive games GDucoffe6 (++'> 9oldsmith and &afferty6 -->

    5orgaonkar and 7olin6 --> 7olin and 5organokar6 -@.

    7ith the rapid growth in technology6 the internet is becoming an important one stop point

    for consumers in finding most of their needs.

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    everyday for their personal work6 but do they notice the ads6 banners etc. displayed

    on that webpage6 most important what is their recall)remembrance value. 7hat about

    the reach of online advertising6 is it effective across over all target groupsP

    7hile a lot of research has been done on advertising6 the effectiveness of online

    advertising in 5enya is a segment that has been missing from these studies. #esearch

    done by 7anjoga6 G-- mainly focused on consumer attitudes towards online

    advertising in 2airobi6 and showed that consumers were aware of the online adverts

    though with no preference to the advertising forms. "t however6 failed to =uantify and

    explain the effectiveness of internet advertising on such consumers. Similar research

    done by 7akukha6 G-(( on the use of internet advertising by 5enya mobile telephone

    industry6 explained forms of internet advertising in use6 the success and challenges faced

    in its use and the level of adoption6 but failed to provide information on its effectiveness in

    influencing or stimulating consumer response. The findings of a survey of the attitude of

    consumers towards retail media advertising by tobacco firms in 5enya6 showed that the

    consumers are aware and knowledgeable about #etail 1edia dvertising tools. The

    study used a sample of - consumers from retail outlets in 2airobi6 which was not a

    viable sample to determine its effectiveness on all consumers from 5enya. However6 as

    suggested by 9ong and 1addox G-@6 Lfuture research can look into the impact of web

    advertising across different countries and cultures to enhance the global understanding

    of web advertising effectivenessM GpE *'. "n addition6 more studies are needed to cover

    various samples in different countries to increase external validity of the research findings

    G8alisir6 -@.

    To fill these gaps6 the current study sought to determine the effectiveness of

    internet advertising on consumer behaviour.

    &.6 Re3ear0h O78e0tive3

    The objectives of the study were to>

    i. Determine the effectiveness of internet advertising on reach and

    creation of awareness.

    ii. %stablish the reliability of internet advertising through recall.

    iii. Determine the relationship between internet advertising and purchase decision.

    '

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    &.9 Va2e )/ the St24

    The study may benefit marketers6 businesses6 government and academicians.

    This study may be able to inform marketers on the consumer preference of

    the advertising media and whether using "nternet adverting would be effectivein reaching and increasing awareness of the target audience.

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    CHAPTER TWO

    LITERATURE REVIEW

    $.& I-tr)20ti)-

    This chapter provides6 through selective reference to some of the literature6 a

    clearer understanding of "nternet advertising concept and outlines previous

    research findings on the effectiveness of internet advertising based on

    measures of advertising effectiveness.

    $.$ The)reti0a F)2-ati)- )/ the St24

    %motional appeals in advertising theory and classical conditioning theory in

    learning consumer behaviour form the theoretical basis of this study. %xtensive

    academic research has been conducted on the psychology of emotion Ge.g.6

    &a:arus (+B* and the ways in which adKevoked feelings may influence

    consumer response to marketing communication Ge.g.6 %nglis (++> Stout6 Homerand &iu (++.

    These insights notwithstanding6 a number of fundamental =uestions remain unanswered

    with respect to ad appeals. 7hy6 for instance6 do these appeals induce such powerful

    consumer responses in certain casesP 7hat causes them to be more or

    B

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    less effective on consumersP 7ith specific reference to internet advertising6

    this study will attempt to answer these =uestions.

    8lassical conditioning is often referred to as a means in which humans learn by

    association. "n the classical conditioning paradigm6 $avlov?s Dog6 a neutral

    stimulus is paired with an unconditioned stimulus to elicit an unconditioned

    response. ;or example6 after repeated pairings of meat Gknown to cause

    salivation with the sound of a bell6 the sound of a bell alone elicits salivation. This

    association is dependent on two characteristics of the associationE contiguity and

    fre=uency. The law of contiguity states that in order for associative learning to

    take place6 the unconditioned stimulus and the neutral stimulus must be paired

    close in time to each other. ;urthermore6 it is not enough for a neutral stimulus

    and an unconditioned stimulus to simply coKexist in a close period of time. The

    more fre=uent the pairing6 the easier it is to form an association.

    $roponents of applying classical conditioning to marketing believe that the

    association between a product and positive stimuli may help explain the effect

    of many variables in communication and attitude change. 9orn G(+B- tested

    the effects of a positive unconditioned stimulus on product preference. His

    results support the notion that the simple association between a product

    Gconditioned stimulus and another stimulus such as music Gunconditioned

    stimulus can affect product preferences as measured by product choice.

    However6 these effects were diminished in situations where consumers were

    in a clear decision making mode. The learning?s of classical conditioning give

    us some insight on the characteristics of an effectively branded "nternet

    advertisement. ;irst and foremost6 the fre=uency with which an ad is served

    impacts brand awareness. ;re=uency also impacts whether or not6 an

    association between a message and a brand6 is made by a consumer.

    +

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    $.6 I-ter-et Averti3i-1

    s a new advertising channel the "nternet and particularly the 7orld 7ide

    7eb G777 portion of the "nternet6 are challenging traditional forms of mass

    media advertising GHoffman and 2ovak6 (++'> Hearn6 1andeville and

    nthony6 (++B. 1eeker G(++B defines a mass communication medium as

    the communication from Lone person or group of persons through a

    transmitting device Ga medium to a large audience or marketM. The "nternet

    offers an interactive alternative to mass media communication through the

    use of web pages6 discussion groups and email GHoffman and 2ovak6 (++'.

    significant advantage for advertisers will be the opportunity to communicate more

    directly with individual consumers through this medium. 1arketers will also be able to

    promote their products and services in a personali:ed6 targeted manner to interested

    people within their target market. "mportantly6 wastage of advertising and marketing

    funds often experienced when exposing promotional messages to the mass market6

    may be reduced as a result of using this new interactive medium. dvertisers will

    need to reKaddress their techni=ues6 services and agency structure and evolve new

    communication strategies for the "nternet as market share is being lost to this more

    personali:ed6 interactive form of "nternet advertising.

    Schlosser et al., G(+++ surveyed a national sample of over * participants and

    found no majority opinion of "nternet advertising-about a third of the participants liked6

    disliked6 and felt neutrally toward "nternet advertising respectively. The "nternet users

    found online advertising was informative but less entertaining6 and it did not

    encourage them to make purchases even they did not perceive it to increase product

    prices. 5orgaonkar and 7olin G-- examined the differences between heavy6

    medium6 and light web users and concluded that Lheavier users hold stronger beliefs

    about and attitudes toward 7eb advertising which likely lead to stronger purchase

    intentM GpE -(. 8omparing with lighter users6 the heavy "nternet users believed that

    web ads were more believable6 entertaining6 informative and helpful> but harder to

    (

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    /nderstand. They perceived that web advertising was a good thing6 moderately

    essential6 and it reduced the cost of products. 1arketers should include web

    advertising in their promotion efforts but the ads should be designed with the

    respective user groups in mind. ;or example6 ads targeted to heavy web users

    should stress the price value relationship of the products6 since they engage in

    more fre=uent purchasing and believe that web advertising helps to decrease the

    prices of products. Similarly6 Ducoffe G(++' found that "nternet advertising was

    perceived to be informative6 entertaining6 useful6 valuable6 and important.

    $.9 I-te1rate Mar+eti-1 C),,2-i0ati)-

    The "nternet has contributed to a greater adoption of integrated marketing

    communication G"18 strategies6 by allowing marketers to communicate more

    directly with individual consumers G&ow6 -. "nternet functions become

    integrated into a company?s communications mix6 which permits the operation of

    the "nternet as an advertising medium to be incorporated alongside more

    traditional media types. The application of the "18 concept involves the

    progression away from the traditional oneKtoKmany marketing communication

    model for mass media to the oneKtoKone communication6 or manyKtoKmany

    communication model Gas illustrated in ;igure -.- GHoffman and 2ovak6 (++'.

    The inclusion of the "nternet in the promotional mix will not eliminate the use of

    mass media advertising channels such as television6 radio6 newspapers and

    maga:ines. However6 the "nternet may reduce the amount of mass media

    advertising re=uired. rguably6 this will occur because the personal computer with

    "nternet access is being utili:ed fre=uently by target audience members as an

    effective communication channel to make both social exchanges using email and

    commercial exchanges to purchase products on the web. The advertising

    industry is being challenged to create more direct6 personal and interactive

    communication with the target market through the use of the "nternet.

    The influence of the "nternet on businessKtoKconsumer G

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    communication has become more interactive. Traditionally advertising has involved

    the reduction of information about a product6 service or idea?s core benefits into a @

    second T!86 a full page colour maga:ine advertisement6 or a (A second radio spot6

    in order to persuade the target market to take action GShiva6 (++,. However6 while

    traditional advertising involves the reduction of information6 the "nternet enables the

    advertiser to provide consumers with detailed information with no time or space

    restrictions. "nternetKbased advertisers do not need to rely on traditional media

    channels6 and are becoming liberated from these limitations6 thus taking advantage

    of interactive communication and informing and educating consumers online.

    Hoffman6 2ovak and 8hatterjee6 (++,.

    $.' E//e0tive-e33 )/ I-ter-et Averti3i-1

    !arious researchers have studied numerous factors that might have an impact on

    "nternet advertising recall. The factors include ad characteristics6 "nternet users?

    viewing mode and duration of viewing6 campaign publicity6 attitudes toward the

    web site or ad6 and curiosity and innovative advertising strategy GDanaher and

    1ullarkey6 -@> 9oldsmith and &afferty6 --> 1enon and Soman6 --.

    Danaher and 1ullarkey G-@ examined the effects of such factors as viewing

    mode6 visit duration6 text and page background complexity6 and the style of

    banner ads on both aided and unaided recall. The authors did not find any

    significant impact of the web site context factors on advertising recall. The key

    finding was that the duration of page viewing is a strong determinant of the ability

    to recall banner ads> however6 a minimum level of exposure Garound * seconds

    per page is re=uired to achieve a reasonable level of advertising recall.

    (-

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    Dre:e and Hussherr G-@ also examined the effectiveness of ad characteristics

    on the ability to recall ad. nimation content6 the shape of the banner ad6 and

    fre=uency of the ad Grepetition leads to higher advertising recall but not the si:e

    of the banner. "n addition6 the authors reported that La banner?s message

    influences both aided advertising recall and brand recognition. This indicates that

    what an ad says is more important than how it says itM GpE -(. "n contrast6 3oon

    G-@ found that banner image is more significantly effective than text to assess

    consumers? preferences toward online ads.

    "n terms of consumer responses in the form of liking online ads6 researchers such

    as 9oldsmith and &afferty G-- and 1etha G- have found that a more

    favorable attitude towards ads can lead to a higher ability to recall ads. 9oldsmith

    and &afferty G-- found a significant relationship between positive responses to

    web sites and the likelihood of recall the brands advertised on the web. The

    authors reported that L"n general6 research suggests that those consumers who

    have a positive attitude toward an ad are more able to recall than those with a

    negative attitude GpE @-. 1etha G- made a similar conclusion but the study

    was based on print advertising performance.

    8lickKthrough rate is a widely used measure for assessing the effectiveness of

    banner advertising6 which is the average number of times a viewer clicks on a

    popKup ad and is then exposed to the target web site GDre:e and Hussherr6

    -@> ;aber6 et al., -*. s reported by 8ho G-@6 Lthe banner

    advertisement clickKthrough is believed to be the most common way to draw

    consumers into a target site and engage them with a brand or product.

    $. C)-32,er Behavi)2r

    ccording to 7arner6 consumer behaviour is the study of individuals6 groups6 or

    organi:ations and the processes they use to select6 secure6 and dispose of products6

    services6 experiences6 or ideas to satisfy needs and the impacts that these processes

    have on the consumer and society G1alcolm. 7arner emphasi:ed the consumption

    related behaviours are often undertaken collectively. ;or example6 some activities

    performed by individuals but consumed by a family or group of people6 similar as

    (@

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    organi:ation purchasing activities usually followed by group decisions.

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    GTodd6 (++,. ssessment of consumer behavior in specific situations6 using

    observational and physiological methods6 is becoming increasingly important

    in understanding conscious and unconscious consumer behavior. n

    increased understanding of consumer behavior may result in the development

    of improved consumer products and in more healthy dietary patterns.

    growing number of techni=ues is available to assist researchers in measuring

    various aspects of consumer behavior such as walking patterns6 product

    selection6 meal composition6 and eating)drinking. Due to advances in digital

    video6 sensor technology and computer speed6 complex measurements of

    behavior and physiology are now possible. "ntegration of these techni=ues

    allows multimodal measurements. 7ith the growing number of techni=ues6

    the challenge for the researcher to choose the right solution becomes larger.

    There are different ways of measuring consumer behaviour6 depending on the

    interest. #egularly conducting market research allows businesses to know

    their customers6 and take them into account when making business decisions.

    This greatly improves business performance6 and profits.

    8ommon measurements includes6 conducting a survey to determine consumer

    behaviour. There are two main types of consumer surveyE =ualitative or =uantitative.

    Fualitative studies involve asking a few consumers a lot of inKdepth =uestions.

    Fuantitative studies involve asking lots of consumers a few =uestions. The latter

    would be better for determining the market for a totally new product6 since you only

    need to find out if people would buy it. "f you are amending a product6 or making one

    similar6 a =ualitative study would allow you to gain more detailed information.

    Similarly6 consumer behaviour would be measured by observing consumers going

    about their business within permitted stores or shopping malls.

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    product. "f so6 then an assumption can be made that it has a similar

    demographic to the second product. /sing the raw data to determine what

    time of day6 or weather6 or time of year people buy a product gives information

    on consumer behaviour. /sing separate objective and subjective data

    obtained from an interview or survey. The primary data from respondents is

    used to make objective judgements6 which are free from bias.

    $.; I-ter-et Averti3i-1 a- C)-32,er Behavi)2r

    The evolution of the "nternet as a global communication infrastructure G8ae6 -

    has created a new advertising channel for advertisers and advertising agencies to

    utili:e and will provide advertisers with the means to more cost effectively target their

    promotional messages to consumers. $sychological factors such as thinking6 feeling6

    sensation6 and intuition directly correlate with customers? online advertising

    experience.8ompanies should aim to strengthen customer interactions with

    advertisements on the 7eb6 keeping both context and cognition in mind.

    /nfortunately6 most companies provide a generic experience to all customers rather

    than relying on customer analysis to deliver a personali:ed experience. They?ve

    failed to innovate and bring the online advertising experience to a whole new level of

    interaction and integration that would truly let them achieve effective communication.

    s consumers experience and respond to stimuli around them6 emotions

    arise. Their reactions manifest themselves as physiological changes they

    experience as feelings. &ikewise6 as people react to stimuli onlineIfor

    example6 to an online advertisementIthey have emotional responses that are

    directly proportional to their reactions to these stimuli. 4n the other hand6

    when customers repeatedly experience the same stimuli6 they may not cause

    any emotional response. $eople become conditioned to ignore the everK

    present ads on 7eb sites6 which is called ad blindness G7olhandler6 (+++.

    dvertising and promotion offer a news function to consumers. s 3oo 7.6 Suh 5.

    and &ee 1. G-- mentioned in their report6 personal interactions with other

    customers and service providers play a very important role while shopping online.

    !iewers of ads learn about new products and services available to them6 much like

    ('

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    they learn about events in the news. This information function has a neutral role. "t

    provides facts without approval or disapproval from consumers. 8ustomer behavior

    at this stage encompasses expressions of curiosity. 8onsumers have a rational

    response to advertising when they look at the features of a product or service. This

    response focuses on a logical listing of all the functional aspects of the offering. This

    is an intellectual response6 rather than an emotional one G&ee6 --.

    7hen customers weigh benefits6 they become emotionally involved with

    advertising and promotion. 8onsumers identify ways the product or service can

    make them happier6 improve their lives or give them pleasure. This part of the

    consumer response is irrational and can lead to impulse buying and competition

    to obtain the product. #epeated advertising messages affect consumer behavior.

    This repetition serves as a reminder to the consumer.

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    CHAPTER THREE

    RESEARCH METHODOLOGY

    6.& I-tr)20ti)-This chapter focuses on research methodology that was used in the study. "t

    provides a detailed description of the research approach adopted in this study.

    #esearch design6 target population6 research instruments6 data collection and

    analysis methods used were presented in the subse=uent sections.

    6.$ Re3ear0h De3i1-

    This study used descriptive research. Descriptive research involves gatheringdata that describe events and then organi:es6 tabulates6 depicts6 and

    describes the data collection G9lass Hopkins6 (+B*. "t often uses visual

    aids such as graphs and charts to aid the reader in understanding the data

    distribution and therefore offered a better clarification on online advertising6

    and ultimately give a clear picture on the effectiveness and reliability of online

    advertising and its relationship to purchase decision.

    6.6 P)52ati)- )/ the St24

    St. ndrews 8ollege has over '@6 registered students with *B6 in

    undergraduate and (A6 in postgraduate as at 0uly -(A according to the

    !arsity ;ocus 2ewsletter. This study targeted undergraduate students of the St.

    ndrews 8ollege because of their background diversity and exposure to

    advertising with a larger percentage using the internet. Students of the St.

    ndrews 8ollege are provided with the "nternet access through wireless

    connection6 and therefore6 the chances for them accessing online advertising via

    social media are very high. 4n the same basis of their diverse background6 only

    undergraduate students from the 1ain campus were chosen for this study.

    6.9 Sa,5e De3i1-

    Stratified sampling techni=ue was used to select the units for study. (6 module " and ""

    undergraduate students of the St. ndrews 8ollege 1ain campus was used as a study

    sample to represent the population of consumers. This sample was stratified into

    (B

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    each of the four years of study and respondents were randomly selected from

    each stratum to come up with the representative sample of ( for the entire

    population. This was a viable sampling techni=ue since it gave the advantages of

    focusing on important subpopulations and allowed the use of different sampling

    techni=ue for different subpopulations in improving the accuracy of estimation.

    6.' Data C)e0ti)-

    The research made use of primary data6 which was collected using structured

    =uestionnaire distributed to the ( respondents sampled from the St. ndrews 8ollege

    main campus6 found outside the library6 from classes6 within the college and within the

    hostels. The administered =uestionnaires were collected after completion by the

    respondents on the same day and their responses used for analysis. The =uestionnaire

    had both open ended =uestions to enable guide the respondent through filling of the

    =uestionnaire as well as probe them for more information.

    6. Vaiit4 a- Reia7iit4

    8ontent validity refers to the extent to which an instrument represents the

    factors under study. To achieve content validity6 =uestionnaires included avariety of =uestions on the knowledge of students on internet advertising and

    consumer behaviour. ll the subjects completed the =uestionnaires in the

    presence of the researcher. This was done to prevent subjects from giving

    =uestionnaires to other people to complete on their behalf.

    #eliability can be ensured by minimi:ing sources of measurement error like data

    collector bias. Data collector bias was minimi:ed by the researcher?s being the

    only one to administer the =uestionnaires6 and standardi:ing conditions such as

    exhibiting similar personal attributes to all respondents6 e.g.6 friendliness and

    support. $ilot testing was carried out by the researcher to identify any flaws on

    the =uestionnaire to reduce errors of measurement and test for consistency.

    (+

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    6.; Data A-a43i3

    The study applied both nominal and ordinal scale to measure a range of factors

    establishing the effectiveness of internet advertising on consumer behaviour and an

    interval scale in determining the relationship between internet advertising andconsumer behaviour. Descriptive statistics was used to analyse this data. The mean

    responses6 standard deviation and other relevant statistics were computed to better

    understand the data. The data collected was compiled and edited to check for logical

    inconsistencies. The data was then coded according to the responses. #elationships

    between responses was assessed and presented using tables and graphs and

    analysis was done using S$SS. #egression and 8orrelation analysis was applied in

    this study to reveal relationships among variables in the findings from the data.

    -

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    CHAPTER FOUR

    DATA ANALYSIS# RESULTS AND DISCUSSION

    9.& I-tr)20ti)-

    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 behaviourE the case of St. ndrews 8ollege Students. The study

    objectives were> to determine the effectiveness of internet advertising on reach and

    creation of awareness> to establish the reliability of internet advertising through recall>

    and to determine the relationship between internet advertising and purchase

    decision. The study targeted ( respondents out of which all the ( respondents

    responded and returned their =uestionnaires contributing to a response rate of (O.

    This response rate was sufficient and representative and conforms to 1ugenda and

    1ugenda G-@ stipulation that a response rate of AO is ade=uate for analysis and

    reporting> a rate of 'O is good while a response rate of ,O 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 fillKin and return the =uestionnaires.

    The chapter covers the demographic information6 and the findings based on the

    objectives. The findings were then presented in tables6 graphs and charts asappropriate with explanations being given in prose thereafter.

    9.$ Ba0+1r)2- i-/)r,ati)-

    The study initially sought to ascertain the general information on the

    respondents involved in the study with regards to the year of study6 age6 and

    gender. The demographic information points at the respondents? suitability in

    answering the =uestions on the effectiveness of internet advertising onconsumer behaviourE the case of St. ndrews 8ollege Students.

    The respondents were asked to indicate their year of study. The study findings

    are illustrated in Table *.(.

    -(

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    Ta7e 9.& Di3tri72ti)- )/ the re35)-e-t3 74 4ear )/ 3t24

    ;re=uency $ercentage

    ;irst year - -

    Second year -+ -+

    Third year @@ @@;ourth year (B (B

    Total ( (.

    SourceE ;ield data.

    s shown in table *.(6 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 bracket. The study

    findings are illustrated in Table *.-.

    Ta7e 9.$ Di3tri72ti)- )/ the re35)-e-t3 74 a1e 7ra0+et

    ge bracket ;re=uency $ercentage

    (+K-A years B- B-

    -'K@A years (B (B

    Total ( (.

    SourceE ;ield data.

    The findings indicate that majority of the students at the St. ndrews 8ollege

    were aged (+K-A years.

    The study sought to establish the gender of the respondents and the findings

    are as shown in Table *.@.

    Ta7e 9.6 Ge-er i3tri72ti)- )/ the re35)-e-t3

    ;re=uency $ercentage

    1ale ,- ,-

    ;emale -B -B

    Total ( (.

    SourceE ;ield data.

    ;rom Table *.@6 the study recorded a higher response rate from males than females in

    their various years of study.

    --

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    9.6 E//e0tive-e33 )/ i-ter-et averti3i-1 )- rea0h a- 0reati)- )/

    a

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    reach and creation of awareness6 the respondents were re=uested to indicate

    the amount of time spent on various platforms of advertising. The responses

    were rated on a five point &ikert scale whereE (less (hr6 -( K -hrs6 @- K

    *hrs6 ** K 'hrs while Aover 'hrs.

    Ta7e 9.' Ti,e 35e-t )- vari)23 5at/)r,3 )/ averti3i-1

    1ean Standard deviation

    T!6 1ovies -.*- (.-*(

    2ewspaper6 1ags (.(( (.@,-

    #adio (.@ .+-,

    "nternet *.-( .A(A

    SourceE ;ield data.

    ccording to the findings in Table *.A6 on an average6 a person spends more

    than * hours on the internet during his free time which is more than that of T!

    and movies6 radio and print medium. Hence6 on an average the exposure of

    internet to an individual is around *O more than that of other mediums i.e.

    the reach of medium internet is much better than that of others.

    The study sought to establish whether the respondents watched the T!) or listened to

    #adio commercials during commercial break. The findings are as shown in Table *.'.

    Ta7e 9. Wat0hi-1 the TV 0),,er0ia3 2ri-1 0),,er0ia 7rea+

    ;re=uency $ercent

    3es , ,

    2o @ @

    Total ( (

    SourceE ;ield data.

    ccording to the findings6 the majority of the respondents attested to watching

    the T!) commercials during commercial break. This implies that for television

    commercials6 around ,O of consumers had a positive perception towards

    advertising on T!.

    -*

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    Ta7e 9.; Cha-1e the 0ha--e 2ri-1 0),,er0ia 7rea+3

    ;re=uency $ercent

    2ever -' -'

    sometimes (, (,

    depends on ad @@ @@

    4ften (@ (@

    every time (( ((

    Total ( (

    SourceE ;ield data.

    #espondents were asked to indicate if they changed channels during commercial

    and the results were tabulated. Table *., shows that the degree of attractiveness

    of the advert and its relevance to the respondents determined their attention to

    the advert. The viewers would see the advertisement if the ad is attractive and

    appealing. Hence there is a probability of .,A of a consumer viewing the

    particular advertisement Gfor creating awareness and information on television

    making it an effective mode of communication.

    9.9 Reia7iit4 )/ i-ter-et averti3i-1 thr)21h re0aThe second objective of the study was to establish the reliability of internet

    advertising through recall. ;irst6 the respondents were asked whether they

    would check an online advert and the findings presented in the Table *.+.

    Ta7e 9.= Che0+i-1 a- )-i-e avert

    ;re=uency $ercent

    3es -( -(2o ,+ ,+

    Total ( (

    SourceE ;ield data.

    "n case of online advertising6 majority G,+O of consumers ignored the advert completely

    while -(O indicated that they would check an online advert. ;urther the study found out

    that6 out of the -(Orespondents6 (AO said that the intention was not to see the ads6 but

    they didn?t have any option but to see them as they were "nterstitial

    -A

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    dverts6 $op R up ads or ;loating ads. These ads either block the view of the

    content6 or appear right in the middle of the page6 or keeps on floating

    Gmoving around which is considered to be very irritating for the consumers.

    8hecking the ads determined the level of interaction with the online ads.

    Therefore6 even though the reach of internet is much higher than that of other

    modes6 its ability to attract consumers for awareness creation is very low.

    The respondents were further asked to indicate their purpose of using

    internet. The study findings are illustrated in ;igure *.(.

    Fi12re 9.& I-ter-et 23a1e

    SourceE ;ield data.

    s shown in ;igure *.(6 @O of the respondents used internet for %Kmail6 -AO

    for information6 and others for chatting and social networking6 indicating that

    communications has been the fundamental value of the internet toconsumers. There was a higher chance of interaction with various online ads

    as reflected by the diverse usage of internet.

    To establish the reliability of internet advertising through recall6 the respondents were

    asked to indicate whether they would recall the last three T! and online ads.

    -'

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    Ta7e 9.> A re0a

    #ecall

    ;re=uency $ercent

    T! 3es B* B*

    2o (' ('

    4nline ads 3es @ @

    2o , ,

    Total ( (

    SourceE ;ield data.

    This is for the last three ads that they had seen consciously or unconsciously. "n

    case of T! ads6 B*O remembered their last three ads which is a very good score

    in terms of creating awareness. "n case of 4nline ads6 only A*O could remember

    their last three interaction with the online ads. Therefore6 one can easily make out

    the reliability of online and T! ads recall values. The study found out that T! ads

    are much reliable than internet advertising and other forms of advertising.

    9.' Reati)-3hi5 7et

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    Ta7e 9.&& State,e-t3 )- i-ter-et averti3i-1 a- 52r0ha3e e0i3i)-

    Statements on "nternet advertising and purchase 1ean Standard

    decision deviation

    "nternet advertising influences customers? purchase *.-( .A(@

    decision

    duration of page viewing is a strong determinant of *.(@ .,*'

    the ability to recall banner ads

    nimation content6 the shape of the banner ad6 and @.+- .B*(

    fre=uency of the ad Grepetition leads to higher

    advertising recall

    8ompanies should aim to strengthen customer *.(( .'-

    interactions with advertisements on the 7eb1ost companies provide a generic experience to all *.( .,@B

    customers rather than relying on customer analysis to

    deliver a personali:ed experience.

    7hen customers weigh benefits6 they become *.A .',@

    emotionally involved with advertising and

    promotion.

    #epeated advertising messages affect consumer @.+B .B*,

    behavior. This repetition serves as a reminder to the

    consumer.

    SourceE ;ield data.

    The study established that "nternet advertising influences customers? purchase

    decision G1ean*.-( and duration of page viewing is a strong determinant of the

    ability to recall banner ads. 4ther factors as repeated advertising messages

    affect consumer behavior. This repetition serves as a reminder to the consumer

    G1ean@.+B6 and that animation content6 the shape of the banner ad6 and

    fre=uency of the ad repetition leads to higher advertising recall .This implies that

    the 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.

    -+

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    9. I-/ere-tia 3tati3ti03

    "n determining the effectiveness of internet advertising on consumer

    behaviour6 the study conducted a multiple regression analysis to determine

    the nature of relationship between the variables.

    The regression model specification were as follows

    3U((U.

    7here>

    3 consumer behaviour

    ( internet advertising

    error term

    coefficient constant

    The study further applied multiple regressions to determine the predictive

    power of the internet advertising on consumer behaviour. The researcher

    conducted a multiple regression analysis so as to test relationship among

    variable Gindependent on the consumer behaviour. The researcher applied

    the statistical package for social sciences GS$SS ! (,. to code6 enter and

    compute the measurements of the multiple regressions for the study.

    8oefficient of determination explains the extent to which changes in the

    dependent variable can be explained by the change in the independent

    variables or the percentage of variation in the dependent variable Gconsumer

    behaviour that is explained by the independent variable Ginternet advertising.

    Ta7e 9.&$ M)e S2,,ar4

    1odel # # S=uaredjusted # Std. %rror of

    S=uare the %stimate

    ( .+(+ .B*A .,B+ .'-,@

    SourceE ;ield data.

    The independent variable that was studied6 explain only B*.AO of the consumer

    behaviour as represented by the #-. This therefore means that other factors not studied

    @

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    in this research contribute (A.AO of the consumer behaviour. Therefore6 further

    research should be conducted to investigate the other factors that affect consumer

    behaviour.

    Ta7e 9.&6 ANOVA )/ the Re1re33i)-

    1odel Sum of df 1ean S=uare ; Sig.

    S=uares

    ( #egression -.A@* A (.-', +.*,A .a

    #esidual +.@, - -.@-,

    Total ((.B*( -A

    SourceE ;ield data.

    The significance value is . which is less than .A thus the model is statistically

    significance in predicting how internet advertising affects the consumer behaviour.

    The ; critical at AO level of significance was @.-@. Since ; calculated is greater than

    the ; critical Gvalue +.*,A6 this shows that the overall model was significant.

    Ta7e 9.&9 C)e//i0ie-t )/ eter,i-ati)-

    1odel /nstandardi:ed Standardi:ed t Sig.8oefficients 8oefficients

    < Std. %rror

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    ccording to the regression e=uation established6 taking all factors into account

    Ginternet advertising constant at :ero6 consumer behaviour will be (.(*,. The

    data findings analy:ed also shows that taking all other independent variables at

    :ero6 a unit increase in internet advertising will lead to a .,A- increase in

    consumer behaviour> This infers that internet advertising contribute most to the

    consumer behaviour. t AO level of significance and +AO level of confidence6

    internet advertising was a significant6 factor in predicting the consumer behaviour.

    To =uantify the strength of the relationship between the variables6 the study used 5arl

    $earson?s coefficient of correlation. The $earson productKmoment correlation

    coefficient Gor $earson correlation coefficient for short is a measure of the strength

    of a linear association between two variables and is denoted by r. The $earson

    correlation coefficient6 r6 can take a range of values from U( to K(. value of

    indicates that there is no association between the two variables. value greater than

    indicates a positive association6 that is6 as the value of one variable increases so

    does the value of the other variable. value less than indicates a negative

    association6 that is6 as the value of one variable increases the value of the other

    variable decreases. The data presented before on internet advertising was computed

    into single variables per factor by obtaining the averages of each factor. $earson?s

    correlations analysis was then conducted at +AO confidence interval and AO

    confidence level -Ktailed. The Table *.(A below indicates the correlation matrix

    between the internet advertising and consumer behaviour.

    Ta7e 9.&' C)rreati)- ,atri? a- the 0)e//i0ie-t )/ eter,i-ati)-

    8onsumer behaviour "nternet advertising

    8onsumer behaviour Gr (.Gp Sig. G- tailed

    "nternet advertising Gr .B+* (.

    Gp G- tailed .(B

    SourceE ;ield data.

    ccording to the Table *.(A6 there is a positive relationship between consumer

    behaviour and internet advertising of magnitude .B+*. The positive

    relationship indicates that there is a correlation between the consumer

    behaviour with internet advertising.

    @-

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    This notwithstanding6 all the factors had a significant pKvalue GpV.A at +AO

    confidence level. The significance values for relationship between consumer

    behaviour and internet advertising was .(B. This implies that internet

    advertising was a significant factor on consumer behaviour.

    9.; Di30233i)- )/ /i-i-13

    The study established that the effectiveness of internet advertising on reach and

    creation of awareness was determined by the level of knowledge about the

    existing platforms of advertisements adopted by various companies in 5enya.

    1ost of the respondents had a positive attitude towards advertising as illustrated

    by their various perceptions about the use of advertising. This clearly shows a

    positive attitude toward advertising and hence is a good indication for marketers.

    The findings augment the findings of

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    The study established that internet advertising influenced purchase decision of the

    customers to a moderate extent as only nearly half of the respondents were influenced

    purchase decision. The study established that internet advertising is a key determinant of

    purchase decision of the customers. The study also established that internet advertising

    has significant relationship with purchase decision of the consumers. The findings

    augment earlier findings of 9oldsmith and &afferty G-- that internet advertising is a

    key determinant of purchase decision by the customers and that internet advertising has

    an association with purchase decision of the consumers.

    @*

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    CHAPTER FIVE

    SUMMARY# CONCLUSION AND RECOMMENDATIONS

    '.& I-tr)20ti)-

    This chapter presents summary of findings6 conclusion and recommendations

    of the study in line with the objectives of the study.

    '.$ S2,,ar4 )/ the St24

    The study found that the effectiveness of internet advertising on reach and creation of

    awareness was determined by the level of knowledge about the existing platforms of

    advertisements and time spent on these media. 4n average6 a person spent more than *

    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 better 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 ability of the respondents to recall the internet ads was low

    compared to T!6 and therefore even though the reach of internet is much higher than

    other forms6 T! ads are much more reliable than internet advertising Danaher and

    1ullarkey G-@. "nternet 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 established that internet

    advertising has significant relationship with purchase decision of the consumers. ;rom

    the $earson?s correlations analysis6 the study established that there is a positive

    relationship between consumer behaviour and internet advertising

    '.6 C)-023i)-

    The objective of the study was to determine the effectiveness of internet advertising

    on consumer behaviour using a sample of St. ndrews 8ollege students. fter

    analysis of the study findings6 the study concludes that the effectiveness of internet

    advertising on reach and creation of awareness was determined by the level of

    knowledge about the existing platforms of advertisements adopted by various

    companies in 5enya and time spent on various media. "nternet advertising waseffective in providing higher reach and creation of awareness. However6 in spite of

    @A

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    the diverse usage of internet and wide interaction with various internet

    advertisements6 fewer respondents were able to recall the internet ads they

    had seen. This implies that the reliability of internet advertising is =uite low.

    The research established that T! advertising is more reliable than internet

    advertising therefore conforming with Danaher and 1ullarkey G-@6 that T!

    ads are much reliable than internet advertising.

    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. However6 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 behaviour. "n addition6 there is a positive

    relationship between consumer behaviour 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.

    '.9 Re0),,e-ati)-3

    The study established that the reliability of internet advertising is low and therefore

    recommends that the management of companies using internet advertising should

    provide uni=ue experience to its customers based on customer analysis to deliver a

    personali:ed experience to the customers6 8alisir G-@. The study also found that

    internet advertising is effective in reach and creation of awareness and recommends

    that the companies should invest more in internet advertising to increase their market

    share and provide product information.

    ;inally6 the study determined that there is a positive relationship between internet

    advertising and consumer purchase decision and further recommends that companies

    should conduct a market research on the different markets in various countries to

    @'

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    ensure that the internet advertising initiatives being implemented suits the

    targeted markets to improve product purchases. This is because there exist

    different contextual realities between different markets 7olin G--.

    '.' S211e3ti)-3 /)r /2rther 3t2ie3

    Since this study explored the effectiveness of internet advertising on consumer

    behaviourE the case of St. ndrews 8ollege Students6 the study recommends that a

    similar study should be done in a private university for comparison purposes and to

    allow for generali:ation of findings on the effectiveness of internet advertising on

    consumer behaviour. s as suggested by 9ong and 1addox G-@6 Lfuture research

    can look into the impact of web advertising across different countries and cultures toenhance the global understanding of web advertising effectivenessM GpE *'.

    @,

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    REFERENCES

    lvin6 0. S6 &isa #. 56 and %rnst6 #. < G--6 Intermedia Substitutability and

    MarketDemand by National Advertisers6 G-E*

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    @B

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    5ent 7.6 "an6 ;.6 G-(6 !e 'ssential uide to Ne# Media * Digital Marketing

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    inperceived risk of online s!opping.0ournal of "nteractive dvertising.

    5otler6 $.6 G-*6 Marketing management, //t! International edition0

    (rentice-1all,pp 234.

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    s!opping:relations!ip patterns. Internet 5esearc!: 'lectronic

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    5oyuncu6 8. and &ien6 D.6 G-@6 '-commerce and consumer$s

    purc!asingbe!aviour. Applied 'conomics6 @AE ,-(K,-'.

    5urt:6 D.6 G-(6 %ontemporary Marketing Mason, 61: Sout!-"estern %engage

    7earning.

    &ee H.6 8ho D. and &ee S.6 G--6 Impact of e-+usiness initiatives on firm

    value. %lectronic 8ommerce #esearch and pplications6 (E *(KA'.

    1alcolm 7arner6 International 'ncyclopaedia of +usiness * Management6

    -nd %dition

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    Silk6 .0.6 5lein6 &.#.6 and

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    APPENDICES

    APPENDI@ I: RESEARCH "UESTIONNAIRE

    SECTION A BAC(ROUND INFORMATION

    (. 3ear of studyP3ear " 3ear "" 3ear """ 3ear "!

    4ther6 Specify _____

    -.ge 9roup GyrsE up to (B (+ to -A -' to * *( to AA AA U

    @. 9enderE 1ale ;emale

    *. $rogramme enrolled inP

    1odule " 1odule ""

    A. 7here is your place of residenceP

    /niversity Hostels

    4ther6 specify _____

    SECTION B ATTITUDES# REACH AND AWARENESS

    '. Do you like dvertisementsP

    3es 2o

    "nformative "rritating

    %ntertaining nnoying

    8reates awareness

    7aste of time,. How much time do you spend onP

    T!6 1ovies V (hr( K -hrs - K *hrs * K 'hrs W 'hrs

    2ewspaper6 1ags V (hr ( K -hrs - K *hrs * K 'hrs W 'hrs

    #adio V (hr ( K -hrs - K *hrs * K 'hrs W 'hrs

    "nternet V (hr ( K -hrs - K *hrs * K 'hrs W 'hrs

    B. Do you watch the T!) or listen to #adio commercials during commercial breakP

    3es 2o

    "nformative "rritating

    %ntertaining nnoying

    8reates awareness 7aste of time

    +. " change the channel during commercial breaksX

    2ever sometimes depends on ad often every time

    i

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    SECTION C: AD RECALL

    (. 7hich is the last 2ewspaper)1aga:ine ad you rememberP 7hich brand was itP

    ((. 7hich is the last T! commercial you rememberP 7hich brand was itP

    (-.2ame any three T! commercials you remember lately

    (._______________________________

    -._______________________________ @. _______________________________

    (@. Do you see)check online ads)mails when you surf the internetP

    2ever sometimes depends on ad often every time

    (*.7hich is the last online ad you rememberP 7hich brand was itP

    __________________________________________________________

    (A.2ame any three online ads you remember lately

    (._______________________________

    -._______________________________ @.____________________________

    SECTION D: INFLUENCERS# PREFERENCE AND PURCHASE DECISION

    ('. 3ou use the internet forP G#ank them in order of your preference

    8hatting and Social 2etworking _____

    %mail _____

    "nformation _____

    %ntertainment _____

    % K8ommerce _____

    Downloading _____

    (,. 7hat mode of advertising influences you to buy any productP

    1aga:ines and newspaper

    ;riends and relatives

    T! 8ommercial

    4nline advertisements

    Social 1edia R

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