ABSTRACT

Today’s scenario is full of, up-to-the-minute need of contemporary future, which

is becoming technically an inevitable part of our life. The size and range of online
advertisement is increasing dramatically. Businesses are spending more on online
advertisement than before. Understanding the factors that influence online
advertisement effectiveness is crucial. An internet broadcast model is what
many major advertisers have been waiting for. They want to make Internet
advertising more like television advertising. Actually, they want to make it better
than TV advertising: all visuals impact of traditional broadcast with the additional
value of interactivity. The goal of advertisers is to make their ads more involving.
Interactive advertising allows customers to become more involved because they
initiate most of the action. Experiences during this interaction will drive brand
attitudes. The purpose of this study is to analyze different types of online
advertising and explore how online advertisements affect consumers purchasing
behavior.

Keywords: Online Consumer, Online Advertisement, Online Purchasing. Brand

Loyalty, Social Media.

1
CHAPTER DESCRIPTION PAGE NO
Acknowledgement
Abstract
Table of contents
List of Figures
List of Tables
1 INTRODUCTION 1
1.1 Introduction 2
1.2 Review of literature 4
1.3 Significance of the study 6
1.4 Scope of the study 6
1.5 Objectives of the study 6
1.6 Hypothesis 6
1.7 Research methodology 7
1.7.1 Research design 7
1.7.2 Sampling method 7
1.7.3 Data collection 7
1.7.4 statistical tools 7
1.7.5 Presentation tools 7
1.8 Limitations of the study 7
2 THEORITICAL FRAMEWORK
2.1 The core concept of online 9
advertising
2.2 Types of online advertising 10
2.3 Advantages of online advertising 11
2.4 Disadvantages 12
2.5 How effective online 12
advertisement can be created
2.6 Most important online 13
advertising opportunities in India
3 CONSUMER BEHAVIOUR AND
ADVERTISING
3.1 Who is consumer 16
3.2 Importance of knowing the 16
consumer
3.3 Consumer discussion process 16

2
 3.4 Relation between consumer 17
behavior & advertising
3.5 Online advertisements and its 18
impact on consumer behavior
3.6 Negative impacts of advertising 19
3.7 Positive effects of advertising 20
4 DATA ANALYSIS AND
INTERPRETATION
4.1 Data collection 23
4.1.1 Primary source of data 23
4.1.2 Secondary source of data 23
4.1.3 Data analyzing and 24-31
interpretation
5 FINDINGS, SUGGETSIONS AND 33-35
CONCLUSION
SCOPE FOR FUTURE RESEARCH
BIBILOGRAPHY

3
 LIST OF FIGURES

FIGURE TITLE PAGE

1 Opt for online advertsing 25

2 Various ways to go for online advertising 26

3 Movable and immovable ads 26

4 Purchasing behaviour 27

5 Function of the products 28

6 Visiting sites 29

7 Ranking of Internet advertisements 30

4
 LIST OF TABLES

FIGURE TITLE PAGE

1 Socio economic profile of 24

the respondents

2 Perception towards 30
influence of advertisement

3 Purchase of product 31

4 Most remembered aspect of 31

advertisement

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CHAPTER - I
INTRODUCTION

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1.1 INTRODUCTION
Online advertising is known as online marketing, Internet advertising, digital
advertising or web advertising and also defined as the various forms of advertising
which are delivered through the Internet, both desktop and mobile. Over the
years technological developments in regard to the Internet combined with its
increasing commercial use and the rapidly growing number of Internet users
worldwide have not only shaped the evolution of online advertising and produced
different forms of digital advertising, but also new advertising business models
and new market levels and players.

Internet is an ongoing emerging source that tends to expand more and is growing
exponentially in both its application and number of user due to its unique
characteristics of flexibility, interactivity and personalisation. Internet as a
strong advertising medium is versatile that is why it stands apart from traditional
advertising mode e-advertising is highly flexible mode that allows consumers to
make changes during the course of campaign as and when
required without increasing much additional cost. This makes internet more
important and in a country like India where the business scenario is highly
dynamic.

The users of internet in the world are increasing very rapidly day by day and it is
used by all age and all types of people. Internet has become one of the major
medium of communication. Traditional marketing forms such as
radio, newspaper, magazines, television etc., are becoming a thing of the past.
Most of the companies and organisations nowadays are relying in digital
advertising and marketing techniques to improve their overall
sales and revenue. Online marketing is so far proved to be effective and efficient
when compared with other forms of advertising and marketing.
E-advertising includes email advertising, search engine advertising, social
media advertising, display advertising, mobile advertising etc., like other
advertising media online advertising frequently involves both the publisher who
integrates advertisement into online contents and an advertiser who provides
the advertisement to be displayed on the publisher content. In the latest decades,

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one of the essential problems of Companies is the knowledge of how the
consumer will respond to various things that will be used for achieving their
ultimate goal. The study of consumer behavior became a concern for marketers,
as they may learn how consumers choose their goods and services required to
meet multiple needs, which are the factors that are influencing their choice. For
this purpose Companies now attracts towards online advertising because online
advertising has grown rapidly in the last decade. The numbers of peoples
becomes very high day by day in connecting and spending more time online.
Additional devices (such as mobile phones and televisions) are able to provide
further internet connectivity. The rapid technology development and the rise of
new media and communication channels tremendously changed the
advertisement business landscape. However, the growing dependency on internet
as the ultimate source information and communication, make it a leading
advertisement platform. The beginning of online advertising was in 1994 when
Hot Wire sold first Banner on the company's own site, and later online advertising
evolved to become a key factor in which companies achieve fair returns for their
products and services.

Fig 1: Online Advertising

1.2 REVIEW OF LITERATURE

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  Neelika Arora has published research article entitled “Trends in Online
Advertising” in Advertising Express, Dec2004. Neelika Arora,” Trends in
Online Advertising”, Advertising Express, Dec2004. The global online
advertising revenues are expected to touch US $10bn by 2006.

 In India, the revenues at present are estimated to be Rs. 80 cr. and are
expected to increase six times more within the next five years. In India,
Internet as a medium is accepted by a wider industrial segment that
includes automobiles, telecom, education, banking, insurance, credit cards,
FMCG, apparel/clothing, durables, media, business services and tourism.
Out of these, it is estimated that the banking, FMCG and insurance sectors
together account for 45% of the total advertising spend.

 Muhammed Aqsa & Dwi Kartini (2015) found that the continuous
development of technology increases the internet users drastically. The
internet is operated by the gadgets like PC, Laptop, Mobile phone, Tablets
etc. so to capture the large strength of consumers’ online advertising is
very compulsory. The study also found that although online advertising is
effective but it can only be targeted to those only who used the internet
continuously

 Harshini C.S (2015) found that the social media is changing traditions of
people. People are increasingly using social media to search for information
instead of other media such as television, magazine, and radio. So the
companies need to create effective online advertising strategies because
internet is now the best platform to capture large number of consumers.
Therefore, online advertisements play an important role in current
scenario.

Muhammad Aqsa& Dwi Kartini (2015) found that the continuous development of
technology increases the
Harshini C.S (2015) found that the social media is changing traditions of people.
People are increasingly
The school of thought believes that the web advertising creates the negative and
positive perception among

9
  The school of thought believes that the web advertising creates the
negative and positive perception among the consumers. It is interesting to
study that where so much of research has been conducted regarding future
of online advertising and the consumer behaviour towards it. Though
people enjoy looking at online advertisement, its formativeness and
utility for making behavioural purchasing decisions also plays role.(Ann
E. Schlosser, Sharon Shavitt & Alaina (1999).

 In comparison to this, automotive, travel and retail spend 37% of the total
advertising revenue and financial service companies spend 12% only. Some
of the top spenders in India are automobiles, followed by brands like
Pepsodent, Kellogg’s, Cadbury, HDFC (Housing Development Finance
Corporation Ltd.) loans and Sunsilk.

 In addition to these the early adopters in the field of finance and IT are also
increasing their spending. Globally, the trend is that almost 60% of the
revenue goes to five firms- Goggle,Yahoo, Microsoft, AOL(America Online
Launchers),and Overture. Approximately, 90% of the Goggle revenues
come from advertising. In India, portals like
indiatimes.com,exchange4media.com, rediffmail.com, etc are attracting
major online spender.

 Choi and Rifon (2002) were of the view that “rapid growth in online
advertising revenues indicates the viability of worldwide web advertising as
an alternative to that of traditional media considering internet advertising
growth, there is little doubt that the internet is a powerful and viable
alternative to traditional media advertising.

1.3 SIGNIFICANCE OF THE STUDY

The study is very important to analyses at what extent online
advertisement effects the consumer buying behaviour. It is necessary for the
companies to know the consumers purchase behaviour. The present study is an

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attempt to highlight the perception of the consumer towards online
advertisement. It also deals to project the growth of the online advertising in
India.

1.4 SCOPE OF THE STUDY

Nowadays company’s website is the most useful tool for promoting various
products. The study is important for new customers those who are coming
forward to purchase through online advertisement. It also covers various
aspects of online advertisement and customers’ perception on online
advertisement. The information has to be right there when you need and should
be compelling enough to capture the audience.

1.5 OBJECTIVES OF THE STUDY

1. To understand the core concept of Online Advertising.

2. To Study the effect of Online Advertising on ConsumerBehavior.
3. To know the importance of Online Advertising.

1.6 HYPOTHESIS

1. There is relationship between e-advertisement and consumer buying

behaviour.
2. Internet users have a good perception of online advertising

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1.7 RESEARCH METHODOLOGY

1.7.1 Reasearch Design - The current study adopts a Descriptive and analytical
research design which aims to describe the historical data and the results of
analysis

1.7.2 Sampling Method - The sampling technique used is non random sampling
i.e. judgemental sampling

Sampling size – The sample size for the project is 100 respondents who
compromise consumers residing in Hyderabad

1.7.3 – Data collection - The data has been collected through primary as well as
secondary sources. Primary data is collected through a well structured
questionnaire and the secondary data is collected form the other sites

1.7.4 Statistical tools – Statistical tools used for analysis are mean , percentage
method

1.7.5 Presentation tools – The tool of presentation are tables, pie-charts, graphs
and other presentational tools

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1.8 LIMITATIONS OF THE STUDY

1.8.1 - The study is limited to Hyderabad city only.

1.8.2 – The study is based on the opinion of respondents and these can be biased

CHAPTER – II
THEORETICAL FRAMEWORK

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2.1 THE CORE CONCEPT OF ONLINE ADVERTSING
Online advertising is a type of mass communication which is based on traditional
form of advertising but develops its own communication strategies in correlation
with the new technical and medium based requirements. Broadly, online
advertising is about delivering advertisements to Internet/online users via Web
sites, e-mail, ad-supported software and Internet-enabled smart phones.
Examples of online advertising include contextual ads on search engine result
pages, banner ads, Rich Media Ads, Social network advertising, interstitial ads,
online classified advertising, advertising networks and e-mail marketing, including
e-mail spam etc.

Fig 2: Goals of Online Advertising

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2.2 TYPES OF ONLINE ADVERTISING

Floating ads: A floating ad is a type of rich media Web advertisement that appears
uninitiated, superimposed over a user-requested page, and disappears or
becomes unobtrusive after a specific time period (typically 5-30seconds). The
most basic floating ads simply appear over the Web page, either full screen or in a
smaller rectangular window. They may or may not provide a means of escape,
such as a close button. More sophisticated versions can come in any shape or size
and include sound, animation, and interactive components.

Expanding ads: These are ads that expand when users click on them. The ads
donot expand just from mousing over hyperlinks, which is a technique used by
some other advertisers. They often take a long time to download, which in turn
can negatively impact the visitor's experience on that page. Polite ad formats
were developed to address this challenge by enabling advertisers to serve larger
file formats without disturbing the load time for the rest of the images on the
page. A polite ad format is loaded in two phases:

Phase One: The initial load is a compact image or SWF file that is smaller in size,
so there is no delay in loading other contents on the page. This could be the first
few frames of the ad, or a teaser.

Phase Two: The main load is the full version of the ad. The full ad can have a
larger file size. It is loaded only after the whole web page has finished loading into
the visitor's browser.

Wallpaper ads: An ad which changes the background of the page being viewed.

a. Trick Banner: A banner ad that attempts to trick people into clicking, often by
imitating an operating system message.

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b. Pop-up: A new window which opens in front of the current one, displaying an
advertisement, or entire webpage.

c. Pop-under: Similar to a Pop-Up except that the window is loaded or sent

behind the current window so that the user does not see it until they close one or
more active windows.

2.3 ADVANTAGES OF ONLINE ADVERTISING

Online advertising, however, is much less expensive and reaches a much wider
audience and will probably give you more profit than traditional advertising. It has
a lot of advantages that traditional advertising haven’t even dreamed about. This
new form of advertising gives such wide possibilities, that it makes your head
spin: video advertising, advertising on social networks, mobile advertising, e-mail
advertising, banner advertising, Google Search advertising and a lot more. These
are the benefits of online advertising:

1. Less Expensive: A main benefit of online advertising is that it has a much

affordable price when compared with the traditional advertising costs. On the
internet, you can advertise at a way more inexpensive cost for a much
wider audience.

2. Wider Geographical Reach: Online advertising gives your campaigns global

coverage, which helps your online campaigns reach more audiences. This will
definitely help you achieve superior results via your online advertising strategy.

3. No Rigorous Payment: This is another appealing benefit of online advertising.

In traditional advertising you have to pay the full amount of money to the
advertising agency, no matter the results. In online advertising however, you have
to pay only for the qualified clicks, leads or impressions.

4. Easy Result Measurement: The fact that it’s so easy to measure makes online
advertising more appealing than the traditional advertising methods. You can find
a lot of effective analytics tools in order to measure online advertising results,
which helps you know what to do and what not to do in your following
campaigns.

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5. More Targeted Audiences: In comparison with traditional advertising, online
advertising helps you to easily reach the targeted audience, which leads to your
campaign’s success.

6. Speed: Online advertising is faster than any of the offline advertising activities
and you can start sending out your online ads to a wider audience, the moment
you start your advertising campaign. So if you have a large targeted audience
online at the time of triggering your online advertisements, then your ad will be
served to majority of the audience in no time.

7. Informative: In online advertising, the advertiser is able to convey more details

about the advertisement to the audience and that too at relatively low cost. Most
of the online advertising campaigns are composed of a able link to a specific
landing page, where users get more information about the product mentioned in
the ad.

8. Easy Audience Engagement: Most of the online advertisement platform makes

is easy for the audience to engage with your ads or products. As an advertiser we
would be able to get more feedback from the audience and thereby improve the
quality of our ads going forward.

9. Better Branding: Any form of advertising helps in improving the branding and
online advertising stands a notch high in improving the branding of your
company, service or product. If your digital advertising campaign is well planned,
you have the chances of getting your brand name spread virally over a larger
audience.

2.4 DISADVANTAGES
The biggest disadvantage of advertising on the Internet is that your marketing
materials are automatically available for anyone in the world to copy, regardless
of the legal ramifications. Logos, images and trademarks can be copied and used
for commercial purposes, or even to slander or mock your company. This is not
the case with television and magazine advertising, wherein images must be
replicated rather than simply copied electronically. Another disadvantage is the
fact that the Internet-advertising gold rush has begun to introduce ad clutter to
the Web. Web users are so inundated with banner ads and spam email that they

17
have begun to ignore internet advertising just as much as ads on traditional
media.

2.5 HOW EFFECTIVE ONLINE ADVERTISEMENTS CAN BE CREATED

Establish Clear Goals and Objectives: As with any marketing communications

online advertising needs to be driven by a set of advertising objectives. The
following are possible communication goals that an organization may want to
achieve through its communications:

• Build brand loyalty

• Increase website traffic Generate sales
• Build a social media following
• Improve customer convenience

Define Target Audience

An organization must know who its target audience is, in terms of their age,
gender, income level, etc. Also, their likes and dislikes, preferences, expectations,
demands from a product and perception about the organization.

Define Communication
The goal is to focus on a single benefit. In trying to communicate too many things,
the consumer will only get confused.

Select Target Rich Websites

Now that the organization knows who their target audience is and what they
need to say, it’s time to find out where their customers are. What sites do they
frequent and how will the organization get its ad displayed on those sites.

Choose Ad Placement and Sizes

Where an ad is displayed on a website depends on the website, the ad size, and
the budget. Ads placed “above the fold” (ads that can be seen without scrolling
down) will get a higher click-through-rate (CTR). But in reality, it all depends on
the site, the content, and the visitor.

2.6 MOST IMPOTANT ONLINE ADVERTISING OPPPORTUNITIES IN INDIA

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 Mobile Marketing: This year we will see access to websites by mobile
devices rival and surpass access by desktop and laptop environments.
Marketers are already taking advantage of this – $32 million was spent on
mobile advertising alone for the three months to September quarter in
2014, representing a 190 per cent year on year increase, and a 34 per cent
increase on the June 2014 quarter. It’s no longer enough to have a website
that “looks ok” in a mobile environment – your website should be
responsive and targeted towards what people may want to see on the go.
Utilizing search for mobile advertising and developing unique campaigns for
these environments is crucial.

 Social Media Marketing: Social media will become an effective tool in the
hands of discerning advertisers. Facebook in its promotional posts and
offers last year,allow marketing within the mobile environment, which is
where the majority of users access Facebook. Promoted posts provide
businesses with the ability to push a post out to not only fans, but ‘likers’ of
fans, increasing the reach dramatically. Offers allow businesses to present
advertised offers which spread virally as people “accept” the offer acting as
brand advocates for your brand by pushing this to their friends. This is
really only the tip of the iceberg. Social media is projected to ramp up its
revenue generating activities.

 Pinterest: Pinterest has seen massive growth – Pinterest now drives more
traffic to business websites than YouTube, LinkedIn and Google +
combined. It’s been a quiet achiever when it comes to businesses, as
businesses discover ways they can harness this opportunity. For
ecommerce sites, the opportunity is obvious – posting images of products,
listing prices and including a URL to the site works well. For other
businesses, it’s about thinking strategically with regards to imagery that
could help support the brand e.g. home builders showing interior shots of
their homes, restaurants posting food images and so on.

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 Fig 4: Indian Online Advertising Sectors

CHAPTER – III

CONSUMER BEHAVIOUR
AND

ADVERTISING

3.1 WHO IS THE CONSUMER

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A consumer is the final user of a product. It consists of all individuals, groups or
Households buying products for personal consumption. Kotler & Armstrong
(2008:130) defines consumer market as a combination of all individuals and
households who buy or acquire goods and services for personal consumption.

3.2 THE IMPORTANCE OF KNOWING THE CONSUMER

Engel, Kollat and Blackwell (1982) define consumer behaviour as those activities
directly involved in obtaining, consuming and disposing of products and services,
including the decision processes that precede and determine those acts. In the
entire business world, the consumer is the king, as every marketing effort is
geared towards consumer satisfaction. As competition is taking a lead in the
business environment, the issue of how best a business organization can
satisfactorily meet the needs of the consumers of its product is a very serious
matter. This issue is at the heart of business survival. This is not just because
consumers represent part of the society but more, because the extent to which a
consumer is satisfied with a particular product or service, largely determines the
competitive advantage that company has over others. A consumer is likened to
the biblical Samaritan woman who after being satisfied with the words of Christ,
went into Town announcing that she had found the Messiah because He told her
all about herself. So it is with a consumer and a product; once a consumer gains
satisfaction in a product, that he would introduce not less than five other
consumers within a space of time is very certain. On the other hand, the
perception of a consumer towards a particular product is of great concern to the
marketer of the product. As mentioned in chapter one of this study, purchasing of
the marketer’s brand is dependent upon whether the marketing and promotional
variables of the marketer facilitate the purchase of such brand.

3.3 THE CONSUMER DECISION PROCESS

Consumer behaviour is all about the study of when, why, how, where and what
people do or do not in the process of buying a product. However, certain factors
influence the consumer’s decision to buy or not buy a product. These factors and
the various steps undertaken by the consumer in buying a product

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3.4 WHAT IS RELATIONSHIP BETWEEN CONSUMER BEHAVIOUR AND
ADVERTISING

Consumer behaviour and advertising are closely related because the main goal of
advertising involves using the behaviour of potential buyers. The art of advertising
is to use visual images and convincing copy to give consumers a sense of longing
or need for products or services. This also ties in with the study of marketing, the
means by which advertising is delivered to consumers through networking,
advertisements, and other means of communication. Advertising refers to ways in
which marketers, retailers, and other professionals communicate with potential
consumers or prospects. It usually involves the use of paid printed media
communications, television spots, or Internet radio ads. Marketers must have a
good grasp of consumer behaviour and advertising of the way the two are
connected before an effective campaign can be implemented. Studies of past
consumer behaviour and public opinion on certain products should be performed
well in advance. Advertisers must understand their potential customers in order
for their efforts yield a good return. The goal of any ad is to persuade consumers
that they need a particular product or service. To do this, the message of
any form of advertising must appeal to the product's key demographic, an ad
must speak directly to the person most likely to need or want the product being
sold. For instance, advertisers probably wouldn't use slang in an ad directed at
investment brokers, nor would they use images of scantily clad women to try and
sell to new moms. In this way, advertising is heavily linked to consumer
behaviour, since no ad will influence a person's behaviour if it seems irrelevant to
his or her desires. Studying consumer behaviour and advertising is also useful in
other ways. Advertisers may go back and study the response rates and reactions
to previous ads to determine overall public opinion about them. This may include
studies on what people think of a particular brand's image or what they thought
about the ad in particular. By determining what consumers respond to best, more
effective advertising can be delivered. The study of consumer behaviour and
advertising is typically a case of trial and error. Some ads, even when they follow
conventional wisdom, simply do not sell products. Many ineffective advertising
comes as the result of not appealing to the right demographic. Others bomb
because they don't address any demographic at all, but they focus solely on the
product or service being offered instead of on consumer needs.

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3.5 ONLINE ADVERTISEMENTS AND ITS IMPACT ON CONSUMER
BEHAVIOUR

The beginning on online advertising was in 1994 when Hot Wire sold the first ad
banner on their company's website. By year 2000 online advertising spending in
the United States had reached $8.2 billion dollars with these numbers increasing
to $12.7 billion as more people are connected to the internet and spend more
time online. This is a clear sign that online advertising has developed quickly in
the last decade. Some of examples of online advertisements includes floating ads,
expanding ads, wallpaper ads, trick banners, pop-ups and pop-under (Bakshi and
Gupta, 2013). Now these are the ones instigated by marketers or producers
themselves. This paper however puts forward that if advertising (online
advertising being no different) is a method of mass-communicating product
benefits then online word of mouth or reviews may be considered as an
additional method of online advertising albeit the marketers or producers would
have very little control as to how such reviews are presented. Below are the
factors influencing consumer behaviour:

The factors influencing consumer behaviour are

a) Individual Factors: which include Demography, Perception, Motivation,

Learning, Belief and attitudes, Psychographics and values, personality and Self-
concept.

b) Social Factors: these comprise cultural influences, social class influences,

Reference Group influences and family influences.

c) Situational factors: which could be viewed in the following ways:

1. Intensity of the response behaviour: Certain objectives or motives may

propel a Consumer to buy products. Whereas some consumers buy for
immediate use or Future consumption, others buy to give out. In any case,
these buying decision Behaviours may be termed: Routine response
behaviour, Limited problem Solving or Extensive problem solving. In the
first case, the consumer is very familiar with all it takes to make a decision
and quickly does that without wasting time. In the case of limited problem

23
 solving, the consumer may require further information before deciding to
buy especially a new product. Products that are occasionally purchased
such as specialty goods follow this Process. Finally, in extensive problem
solving, the consumer must follow the Entire buying decision process.

2. Some purchases may also be planned, routine, impulse or emergency.

3. Previous experience, interest, perceived risk of negative consequences,

situation and social visibility may also influence consumer purchase
behaviour.

3.6 NEGATIVE IMPACTS OF ADVERTISING

Advertising takes money, whether purchased through an online advertising

service, print ads in a newspaper or commercials on radio and TV. Designing the
ads and the copy costs money, as well. On the high end, companies spend up to
$2.6 million for a 30-second commercial during the Super Bowl. While the positive
impact of advertising is bringing in sales dollars, the negative impact is felt by
those who are the target of the advertising.

MISREPRESENTATION

Advertising aims to present a product in the best light possible. There is some
leeway in the creative process. As the Gecko in the Geiko ads says, "That's just a
dramatization, of course," referring to the idea that if you ask Geiko
representatives for an English muffin, they'll serve one up toasted with butter and
jam. The problem arises when the dramatization crosses the line into falsely
representing a product. Hefty fines can result from false advertising when levied
by the Federal Trade Commission.

UNREALISTIC EXPECTATIONS

Direct-to-consumer advertising for prescription drugs has resulted in unrealistic

expectations about the effectiveness of drugs and their side-effects, according to
the Food and Drug Administration's study "Patient and Physician Attitudes and

24
Behaviours Associated with DTC Promotion of Prescription Drug." Voice-overs
give the downside to the drug, but the visual images show healthy, happy people.
It's not unusual to hear that even death may be a side- effect of a prescription
drug. Beauty and health products may also not live up to their promises, resulting
in wasted consumer dollars. Disclaimers are often hidden in very small print on
product packaging and in out-of-the way spots in ads.

FALSE IMAGES

Advertising is ingrained in American culture, from children's programs on

Saturday morning to talk shows and prime time TV. Advertising even invades
movies through product placement. It's not an accident when a movie hero holds
up a can of Coke instead of Pepsi. Advertising influences how people feel about
themselves -- often in a negative way. Based on the images they see in
advertising, women often feel they should be thin and beautiful and hold down
full- time jobs while also being full-time mothers. Advertising communicates that
men should be handsome, tall, athletic, caring husbands, thoughtful fathers and
virile at all times. These images are often unrealistic and unattainable.

3.7 THE POSITIVE EFFECTS OF ADVERTISEMENTS

Advertisements are messages paid for by a business or advertiser and delivered

via a mass medium with the attempt to persuade a target audience to like a
brand, develop a more favourable attitude or intend to buy. Small businesses
often have limited budgets to spend on advertising, but the positive effects are
often worth it.

AWARENESS
Simply reaching out to the market to let them know you exist is a primary initial
objective of advertising. No matter how great your product or service, if no one
knows you exist, you cannot sell to them. An effective and often repeated
advertisement helps your target audience become more familiar with your brand
and ideally recall it when a need arises for which your brand intends to meet.

Induce Business

25
Advertisements are sometimes intended to induce immediate sales and revenue.
Presentation of sales promotions through ads are a way to drive business quickly.
Television and radio ads can communicate your message. In print advertisements,
such as with magazines and newspapers, you can include sales promotion tools,
such as a coupon, right in the ad. New businesses often use promotions to build a
customer base, but they are also used to sell excess
inventory and create cash flow when needed.

INFORMATION AND EDUCATION

In article "Unappreciated Benefits of Advertising and Commercial Speech"
for the website The Technology Liberation Front, Adam Thierer points out that
advertisements sometimes serve to inform and educate consumers. This is
especially true when new brand or products are introduced to the market or
when product complexity means more education is required. Understanding the
value of an advertiser's brand relative to the needs they have helps
consumers make more informed decisions.

RETURN ON INVESTMENT
From a financial standpoint, advertisements should generate a return on
investment, indicates Dan Keen of Break Studios in his April 2010 article "10
Benefits of Advertising." Advertisements cost money to develop and place.
Companies consider how much return of investment they get in the form of
heightened consumer awareness, improved brand sentiment or direct sales.
Evaluating results of advertisements is vital for companies to confirm a return
on investment and to avoid wasteful messages that do not accomplish the
intended results.

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 CHAPTER – IV

DATA ANALYSIS
AND
INTERPRETATION

4.1 DATA COLLECTION

Data collection is defined as the procedure of collecting, measuring and analyzing

accurate insights for research using standard validated techniques. A researcher
can evaluate their hypothesis on the basis of collected data. In most cases, data

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collection is the primary and most important step for research, irrespective of the
field of research. The approach of data collection is different for different fields of
study, depending on the required information. The most critical objective of data
collection is ensuring that information-rich and reliable data is collected
for statistical analysis so that data-driven decisions can be made for research.

4.1.1 PRMIARY SOURCE OF DATA

Primary data is a type of data that is collected by researchers directly from main
sources through interviews, surveys, experiments, etc. Primary data are usually
collected from the source—where the data originally originates from and are
regarded as the best kind of data in research. The sources of primary data are
usually chosen and tailored specifically to meet the demands or requirements of
particular research. Also, before choosing a data collection source, things like the
aim of the research and target population need to be identified .
Questionnaire - A questionnaire is a research instrument consisting of a series of
questions for the purpose of gathering information from respondents.
Questionnaires can be thought of as a kind of written interview. They can be
carried out face to face, by telephone, computer or post. Questionnaires provide
a relatively cheap, quick and efficient way of obtaining large amounts of
information from a large sample of people.

4.1.2 SECONDARY SOURCE OF DATA

Secondary data refers to data that is collected by someone other than the
primary user. Common sources of secondary data for social science
include censuses, information collected by government departments,
organizational records and data that was originally collected for other research
purposes.
4.1.3 DATA ANALYSIS AND DATA INTERPRETATION

Data analysis is a process of systematically apply statistical or logical techniques to

describe illustrate, condense and recap, and evaluate data. Data collection and
analyses tools are defined as series of charts, maps and diagrams designed to

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collect, interpret and present the data that has been collected. Date
interpretation is the process of reviewing data through sum pre defined process
which will help us assigned some meaning to data and arrive at a relevant
conclusion. Mean, percentage and chi square methods are used and graphs are
drawn accordingly.

Socio economic profile of the respondents

CRITERIA NO.OF RESPONDENTS PERCENTAGE

GENDER MALE 35 35%
FEMALE 65 65%
AGE BELOW 20 79 79%
20 - 29 10 10%
30 - 39 08 8%
40 and above 03 3%
EDUCATIONAL UG 34 34%
QUALIFICATION GRADUATE 46 46%
PG 14 14%
DOCTRATE 02 2%
OTHERS 04 4%

EMPLOYEMENT EMPLOYED 39 39%

STATUS SELF EMPLOYED 08 8%
STUDENT 46 46%

MONTHLY NO INCOME 44 44%

INCOME LESS THAN10000 15 15%
10000-25000 24 24%
25000-50000 14 14%
50000 ABOVE 03 3%

INTERPRETATION – The table 1 shows that majority (65%) of the respondents are
females hail form the age group 20-29 (79%) . Most of the respondents are
students (46%). Most of the respondents belong to income group (44%). 24% of
respondents belong to 10000 – 25000 income groups.

Graph no -1

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Graph 1 shows that 77.5% netizens do prefer online advertising whereas there is
still 22.5% respondents who don’t opt for online advertising and prefer traditional
shopping over it.

GRAPH NO-2

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Graph 2 shows respondents were asked to rank (upto 3) about web portals,
ecommerce sites and company websites in response to their online shopping. It
was not mandatory to rank 1, 2 and 3 but they were allowed to rank only 1, 1& 2
or upto 3, so that data gathered is shown on the above Graph No.2.

GRAPH NO -3

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Graph 3 shows that 64% of respondents like movable ads i.e. those ads that are
visually appealing and contains animations and graphics whereas nearly 36% of
the netizens also like immovable ads on the website homepage.

GRAPH NO – 4

Graph 4 mentioned above shows that 48.6% of respondents believe that words
like buy now, apply now, etc. do persuade them to make purchases whereas
16.3% directly refused to agree with it and the rest percentage of respondents
can’t give their opinion about it.

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 GRAPH NO - 5

Graph 5 shows that 40.5% respondents believe that online advertisements

should show the function of the product as well whereas 26.5% of respondents
are pretty fine with the practice. Still 33% of netizens didn’t comment about it.

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 GRAPH NO - 6

Graph 6 shows that 166 respondents consider notice discount offers on online
advertisements by giving them 1st rank followed by 120 respondents that feel
that colors attract them the most on online ads. 3rd rank was given to promotions
with 78 respondents agreeing to it.

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 GRAPH NO -7

Graph 4 it can be seen from the above graph that 159 respondents preferred
rectangle banner advertisements as rank 1, followed by Skyscraper (vertical ads)
liked by 140 respondents and 120 people gave rank 3 to sponsored ads.

Table-1: Perception towards influence of advertisement on shopping trend of

consumers
Opinion Frequency Percentage
YES 141 95.3%
NO 7 4.7%

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According to above table 95.3% respondents think that advertisement influences
their shopping trend and 4.7%
respondents think advertisement doesn’t influence their shopping trend.
Table -2: Perception towards factor influencing the purchase of product

FACTORS Frequency Percentage

The advertising was interesting 108 72.5%
Curious about the product 61 40.9%
Wanted to imitate the actors in the advertisement 2 1.3%
The price was low for the product 59 39.6%
Suggested by other people about the product 27 18.7%

This table indicates that 72.5% of respondents are influenced to purchase

the products by the interesting advertisements, 40.9% are influenced by their
curiosity about the product, 39.6% are influenced by the low price of the
products, 18.7% are influenced by suggestions about the products by other
people, 1.3% respondents are influenced to purchase the products because of
their intention to imitate the actors in the advertisement.

Table-3: View towards most remembered aspect of advertisement

ASPECTS FREQUENCY PERCENTAGE

COLOR 18 12%
SLOGAN 26 17.3%
THEME 114 7.6%
PUNCH LINE 31 20.7%
CELEBRITY 20 13.3%

The table clearly indicates that 20.7% respondents mostly remember the punch
line of the advertisement,17.3% respondents remember the slogan of the
advertisements most of the times, 13.3% respondents most remembered
aspect of advertisement is the celebrities in the advertisement, 12% out of total
respondents mostly remember the colors used in the advertisements, and the
remaining 7.6% respondents remember the theme of the advertisement most
of the time.

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 CHAPTER – V

FINDINGS, SUGGESTIONS
AND
CONCLUSIONS

37
FINDINGS OF THE STUDY

To find the growth of e-advertising

in India
The online advertising spend is estimated to growth at a compound annual
growth rate of 30%.

The consumers have started tracking online advertisements. The proportion of

internet user who believe that online ads are Informative and that they help
them in finding the right product or service they were looking for.

Marketers also exploring in online advertising lines and it is believed to fetch

better monetization.

Video ads are considered to take a great branding tort as they have a power to
connect with the consumers.

 To understand the significance

of online advertisement
To achieve an increase in the business online advertising plays a vital role.

Consumers are increasingly using the internet to look up information. According

to search engine giant Google, 97% of consumers search for business in the
internet.

The findings of this study suggest that online advertising may be a powerful
marketing tool in the context of online environment.

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 The research findings imply that marketers should include online advertising in
their advertising media mix as online advertising promotes online buying or
online shopping.

Online marketers and retailers should place more attention on the design,
usefulness, and integrity of the online ads to promote a positive attitude toward
online ads among the consumers.

A favorable response to online ads will encourage consumers buy product and
service via the Internet.

The survey also concludes that some netizens do like still online ads that are
designed in Big Picture Layout for the tangible products but for service oriented
products, respondents prefer Copy Heavy Layout ads.

Though various types of internet advertisements appear on the website but

respondents prefer rectangular banner advertisements followed by skyscraper
ads that are in vertical format.

SUGGESTIONS

 The consumers are introduced significantly by advertisements when the

target is on quality on price.

 Purchase attitude and behavior is influenced by variety of advertisements

which cover product evaluation and recognition.

 More product information should be given in the website regarding the

product. Since physical feel of the product is not available

 Promotional schemes should be often given, as consumers are ready to

move on to other brands.

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CONCLUSION

With the increased adoption ad fission of the Internet, World Wide Web is
becoming gradually a standard advertisement platform. The Web is offering
business advertisement world with more rich media tools, interactive services,
and global reach. The need is to understand the target consumers and then
strategize wisely in order to gain maximum out of this new medium. interactive
technology presents new possibilities for the entire advertising industry. In the
case of mass media, there are companies that measure the size of the audience
per commercial message, for instance Nielson TV and radio ratings, and efforts
are underway to further evaluate the economic impacts of advertising by
correlating advertising and an increase in sales. But broadcast advertising is
fundamentally inefficient because of its redundancy. It sends messages regardless
of whether people are interested, receptive, or relevant to the product. In
comparison, selecting an audience and verifying the number of people who
received a message is relatively easy on the Internet.
However, the advertiser still does not know whether the receiver actually read
the message or not. Refined measures and methods are being proposed for the
Internet. Proctor & Gamble, for example, limits payment for its ads on the Yahoo!
Search engine to the number of people who actually request more information by
clicking on their advertisement rather than paying based on the number of
Yahoo! Customers to whom its advertisement is presented on their search pages.
This is in contrast with the traditional method of measuring viewer-ship, and
payment—based on "eyeballs," equivalent to the number of connections to
Yahoo!. As more and more sellers begin to doubt the effectiveness of broadcast
advertising on the Internet that simply flashes banner advertisements, have to
rely on different revenue sources. As a result, there will be reduced outlets for
broadcast-based advertising in the future. An alternative is targeted advertising.
The data analysis shows that maximum respondents agree that they are more
influenced by online advertisement. Now a day’s viewer give more importance to
Brand ambassador/ Celebrity, Punch Line, visual effects, music in TV ads. In
today’s era customers of all the age groups mainly demand the products which
they have seen in online. The advertising should be genuine, correct and serve the

40
informational needs of the consumers. The companies should use attractive and
informative content to create the awareness in the consumers.
As people get more familiar to finding their product information on the web,
more and more readers will actively seek out Online advertising sites. However,
internet advertising is a key determinant of purchase decision of the customers as
they consider it to be an interaction point between them and the company from
which they buy their products from. Internet advertising has good relationship
with purchase decision of the consumers. There is a effective relationship
between consumer behaviour and internet advertising. This implies that
companies should invest more on internet advertising to increase their market
share

FUTURE SCOPE OF RESEARCH

In a big country like India which has a diverse culture, language, and many other
social factors, which are to be analyzed to have better contents. So future
researchers can take large samples, analyze attitudes in combination with
different cultures, expectations, and value etc. as an example.

The analyses with a different combination of variables may give good insight into
the need and expectations of the present-day consumers. A new scale to measure
overall expectations, attitudes and satisfaction can be devised and empirically
tested. Competing marketers & media like social media can be also made part of
future research.

BIBILOGRAPHY

Online journals :

 Neelika Arora. Trends in Online Advertising, Advertising Express, 2004.

 Casalo LV, Flavian C, Guinaliu M. The influence of satisfaction, perceived

reputation and trust on a consumer's commitment to a website. Journal of
Marketing Communications. 2007

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  BAKSHI GAURAV AND GUPTA K DR. SURENDER (2013) , Online advertising
and its impact on Consumer buying behavior. International Journal of
Research in Finance & Marketing, Vol. 3, Issue 1 (ISSN 2231-5985)

 BORREL CATHERINE (2010) Online Consumer Behavior: Europe ;Market

Development Overview. IAB Europe Research Group.

 AZIZ NORZALITA ABD, ARIFFIN AHMAD AZMI M.(2010) Exploring

consumers attitude towards Web advertising and its influence on Web Ad
usage in Malaysia.

 RASTOGI KUMAR ANKUR (2010)‟A study of Indian Online Consumers &

their Buying Behaviour‟ International Research Journal, July 2010 ISSN-
0975-3486 RNI: RAJBIL 2009/30097 VOL I *ISSUE 10

WEBSITES

 https://en.wikipedia.org/wiki/Online_advertising

 WWW.Shodhganga.inflibnet.ac.in

 WWW.Onlineadvertising.com

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