DISSERTATION ON

Consumer Behavior towards Online Advertising

Submitted to Lovely Professional University

In partial fulfillment of the requirements for the award of degree of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted by: Project guide/advisor

Group No______ Lr. Prabhjot Kaur

Koshik Garg RQ1808B55 LHSB

Nitish Bhardwaj RQ1808B57

Anil Sharma RQ1808B61

Sameer Taneja RQ1808B62

DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA

(Year of completion-2010)

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A

TO WHOMSOEVER IT MAY CONCERN

This is to certify that the project report titled “_CONSUMER BEHAVIOR TOWARDS
ONLINE ADVERTISEMENT” carried out by Nitish Bhardwaj, Sameer Taneja, Koshik Grag,
Anil Sharma has been accomplished under my guidance & supervision as a duly registered MBA
student of the Lovely Professional University, Phagwara. This project is being submitted by
him/her in the partial fulfillment of the requirements for the award of the Bachelor of Business
Administration from Lovely Professional University.

His dissertation represents his original work and is worthy of consideration for the award of the
degree of Bachelor of Business Administration.

___________________________________

(Name & Signature of the Faculty Advisor)

Date:

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 DECLARATION

We, "Nitish Bhardwaj, Sameer Taneja, Koshik Garg, Anil Sharma”, hereby declare that the
work presented herein is genuine work done originally by me and has not been published or
submitted elsewhere for the requirement of a degree programme. Any literature, data or works
done by others and cited within this dissertation has been given due acknowledgement and listed
in the reference section.

Koshik Garg

Nitish Bhardwaj

Anil Sharma

Sameer Taneja

(Student's name & Signature)

_______________________

(Registration No.)

10806050

10802335

10809595

10811318

Date:__________________

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ACKNOWLEDGEMENT
Pursuing a B.B.A (Hons.) degree is like dream coming true. The Final Research Project, which is
there in the course, is very helpful in providing the practical exposure to the students. I have
done my project on the topic .”Consumer Behavior towards Online Advertising”.
I would like this opportunity in expressing our deepest gratitude to all those persons, who in one
way or other helped me in making endeavors a success. Words are not sufficient to reflect my
thankfulness and respect towards those persons for their significant contribution in the
completion of my report.
I give our profound thanks, as I cherish these inspiring ideas; constant encouragement and
earnest interest shown by my Project In charge Ms Prabhjot Kaur, Lecturer, Lovely professional
university Jalandhar and her valuable suggestions and moral support during the preparation of
this report. She is the painstaking person, who wants overall learning of her students.
I would also like to take the opportunity to thank the professionals and Businessmen, who
devoted their precious time for providing their valuable opinions on the topic.
I appreciate the encouragement render by our friends. I am grateful to my friends who have
rendered freely their time to make my efforts visible and consummate. I am indeed very thankful
to all of them.

Compiled by:-
Koshik Garg
Nitish Bhardwaj

Anil Sharma
Sameer Taneja

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 Table of content
S.No Chapter Page no.

1 Introduction 6

2. Review of literature 21

3 Objectives and research methodology 32

4 Data Analysis 41

5 Conclusion & Findings 61

6 Appendices 63

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CHAPTER – 1
( Introduction)

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INTRODUCTION
What is online advertisement?
Online advertising is a form of promotion that uses the Internet and World Wide Web for the
expressed purpose of delivering marketing messages to attract customers.

Competitive advantage over traditional advertising

One major benefit of online advertising is the immediate publishing of information and content
that is not limited by geography or time. To that end, the emerging area of interactive
advertising presents fresh challenges for advertisers who have hitherto adopted an interruptive
strategy.The cost per exposure is less in the case of online advertisement.
Another benefit is the efficiency of advertiser's investment. Online advertising allows for the
customization of advertisements, including content and posted websites. For
example, AdWords, Yahoo! Search Marketing and AdSense enable ads shown on relevant
webpages or aside of search results of pre-chosen keywords. Another is the payment method.
Whatever purchasing variation is selected, the payment is usually relative with audiences'
response.
Types of advertising

E-mail advertising
Legitimate Email advertising or E-mail marketing is often known as "opt-in e-mail advertising"
to distinguish it from spam.
Affiliate marketing
Affiliate marketing is a form of online advertising where advertisers place campaigns with a
potentially large number of small (and large) publishers, whom are only paid media fees when
traffic to the advertiser is garnered, and usually upon a specific measurable campaign result (a
form, a sale, a sign-up, etc). Today, this is usually accomplished through contracting with
an affiliate network.
Affiliate marketing was an invention by CDNow.com in 1994 and was excelled
by Amazon.com when it launched its Affiliate Program, called Associate Program in 1996. The
online retailer used its program to generate low cost brand exposure and provided at the same
time small websites a way to earn some supplemental income

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Contextual advertising.
Many advertising networks display graphical or text-only ads that correspond to the keywords
of an Internet search or to the content of the page on which the ad is shown. These ads are
believed to have a greater chance of attracting a user, because they tend to share a similar
context as the user's search query. For example, a search query for "flowers" might return an
advertisement for a florist's website.
Another newer technique is embedding keyword hyperlinks in an article which are sponsored
by an advertiser. When a user follows the link, they are sent to a sponsor's website.

Behavioral targeting
In addition to contextual targeting, online advertising can be targeted based on a user's past
clickstream. For example, if a user is known to have recently visited a number of automotive
shopping / comparison sites based on clickstream analysis enabled by cookies stored on the
user's computer, that user can then be served auto-related ads when they visit other, non-
automotive sites.

Semantic advertising
Semantic advertising applies semantic analysis techniques to web pages. The process is meant
to accurately interpret and classify the meaning and/or main subject of the page and then
populate it with targeted advertising spots. By closely linking content to advertising, it is
assumed that the viewer will be more likely to show an interest (i.e., through engagement) in
the advertised product or service

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Ad server market structure
Given below is a list of top ad server vendors in 2008 with figures in millions of
viewers published in a Attributor survey. Since 2008 Google controls estimated 69% of the
online advertising market.

Vendor Ad viewers (millions)

Google 1,118

DoubleClick (Google) 1,079

Yahoo! 362

MSN (Microsoft) 309

AOL 156

Adbrite 73

Total 3,087

Source-Wikipedia

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Revenue models
The three most common ways in which online advertising is purchased are CPM, CPC,
and CPA.
CPM (Cost Per Mille), also called "Cost Per Thousand (CPT), is where advertisers pay for
exposure of their message to a specific audience. "Per mille" means per thousand impressions,
or loads of an advertisement. However, some impressions may not be counted, such as a reload
or internal user action. The M in the acronym is the Roman numeral for one thousand.

CPV (Cost Per Visitor) is where advertisers pay for the delivery of a Targeted Visitor to the
advertisers website.

CPV (Cost Per View) is when an advertiser pays for each unique user view of an advertisement
or website (usually used with pop-ups, pop-unders and interstitial ads).

CPC (Cost Per Click) is also known as Pay per click (PPC). Advertisers pay each time a user
clicks on their listing and is redirected to their website. They do not actually pay for the listing,
but only when the listing is clicked on. This system allows advertising specialists to refine
searches and gain information about their market. Under the Pay per click pricing system,
advertisers pay for the right to be listed under a series of target rich words that direct relevant
traffic to their website, and pay only when someone clicks on their listing which links directly
to their website. CPC differs from CPV in that each click is paid for regardless of whether the
user makes it to the target site.

CPA (Cost Per Action) or (Cost Per Acquisition) advertising is performance based and is
common in the affiliate marketing sector of the business. In this payment scheme, the publisher
takes all the risk of running the ad, and the advertiser pays only for the amount of users who
complete a transaction, such as a purchase or sign-up. This is the best type of rate to pay for
banner advertisements and the worst type of rate to charge.

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Similarly, CPL (Cost Per Lead) advertising is identical to CPA advertising and is based on the
user completing a form, registering for a newsletter or some other action that the merchant feels
will lead to a sale

Also common, CPO (Cost Per Order) advertising is based on each time an order is transacted.

CPE (Cost Per Engagement) is a form of Cost Per Action pricing first introduced in March
2008. Differing from cost-per-impression or cost-per-click models, a CPE model means
advertising impressions are free and advertisers pay only when a user engages with their
specific ad unit. Engagement is defined as a user interacting with an ad in any number of
ways.[3]

Cost per conversion Describes the cost of acquiring a customer, typically calculated by
dividing the total cost of an ad campaign by the number of conversions. The definition of
"Conversion" varies depending on the situation: it is sometimes considered to be a lead, a sale,
or a purchase

THEORIES AND CONCEPTS (ONLINE ADVERTISING AND CONSUMER

BEHAVIOR)

Traditional theories of consumer behavior identified four main theories traditionally applied to
offline consumer behaviour which researchers have also used to analyse consumer behaviour
towards online shopping:

• The Theory of Reasoned Action

• The Theory of Planned Behaviour

• Stimulus Organism Response

• Decision making models of consumer behaviour.

We consider each of these in turn below.

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The Theory of Reasoned Action

The Theory of Reasoned Action (TRA) is a theoretical approach which has been used
extensively as a tool to help explain consumer actions, in both on and offline contexts. Cheung et
al. (2005), in a review of 335 different articles on internet shopping, drawn predominately from
the fields of Marketing, Business and IT, found that approaches utilising some form of TRA
(including the Theory of Planned Behaviour and the Technology Acceptance Model) were the
most prevalent theoretical approaches to the study of online consumer behaviour. The TRA ,
created by Ajzen and Fishbein (1980, see also Ajzen, 1985), is a psychological model which
investigates the various factors underlying the decision of an individual to behave in a particular
way. The theory holds that human action is guided by two kinds of considerations:

• beliefs about the likely outcomes of the behaviour and the evaluations of these outcomes
(outcome beliefs)

• beliefs about the normative expectations of others and motivation to comply with these
expectations (normative beliefs).

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The Theory of Planned Behaviour

The Theory of Planned Behaviour (TPB) closely resembles the TRA, however the TPB adds the
important factor of perceived control.

The normative beliefs in this study were measured by asking respondents to identify three
people who were important to them and whose opinion they valued, and asking them to indicate
on an attitude scale how they believed these people would think about shopping online for these
goods.

Perceived control refers to an individual's perception of the difficulty of performing a given

action. Perceived control is described as a control belief. Control beliefs suggest that a person's
motivation to perform an action is influenced by how difficult that action is perceived to be, as
well as the individual's perception of how successfully s/he can, or cannot, perform the activity.
Therefore, if an individual has a high degree of confidence that s/he can perform the activity,
then s/he will be more likely to perform the action.

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Stimulus organism response

A further approach which has been used in the study of consumer behaviour, in both on and
offline shopping, is the Stimulus Organism Response (SOR) model, originally proposed by
Mehrabian and Russell (1974). This model, which has been used to study consumption from an
environmental psychology perspective, provides a framework for studying the impact which a
particular environment has upon individual behaviour. The SOR model has also been employed
in numerous offline retailing behaviour studies, albeit in modified forms (Donovan & Rossiter,
1982; Sherman & Smith, 1986). Mummalaneni (2005) proposes that SOR is applicable to the
context of virtual shops

• design factor (for example, was the website colourful/drab; wellorganised/ badly organised;
helpful signage/unhelpful signage)

• ambience (for example, was the website attractive/unattractive; boring/stimulating; dull/bright)

• pleasure (for example, did the website make the individual feel happy/unhappy; bored/relaxed;
unsatisfied/satisfied; pleased/ annoyed)

• arousal (for example, did the website make the individual feel frenzied/sluggish; calm/excited;
dull/jittery; unaroused/aroused)

• satisfaction (for example, 'this shopping trip was truly a joy'; 'I continued to shop, not because I
had to, but because I wanted to')

• intended loyalty (for example, 'I intend to shop at this store in the future'; 'I would recommend
this store to my friends'; 'I will avoid this shop in the future').

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Consumer’s buying process-

Problem identification, information search, selection of alternative, purchase decision and post
purchase decision.

Internet specific theories of consumer behavior

We now turn to consider the second, and smaller, family of theoretical approaches to the study of
online shopping. These more recent theories work from the assumption that online shopping
behaviour and experience are fundamentally different to offline behaviour and experience. Apart
from a consideration of the consumer decision process, the theories covered in this section have
not been applied to offline shopping.

We start by considering the consumer decision making process and how certain authors believe it
to be altered when applied to the experience of internet shopping. Nelmapius, Boshoff, Calitz
and Klemz (2003) suggest that the nature of the internet (where an individual sits alone, in a
familiar environment, before an inter-connected network) means that most of the decision
making regarding online shopping is carried out in isolation with little or no interaction with
others. Furthermore, they consider that the

internet retail environment is relatively unfamiliar and complex and that the sense of
unfamiliarity and complexity is compounded by the absence of the stimuli of touch, taste and
smell, which are available in the physical environment.

When using the internet, individuals are shopping in dual dimensions, simultaneously. That is to
say, they are shopping in the privacy and comfort of familiar physical surroundings (home or
work) and, at the same time, in the relative unfamiliarity of the 'virtual' surroundings of websites.
Because the shopping takes place in a virtual environment, the consumer is free either to
complete the purchase or to discontinue it at any point, if not entirely satisfied, without any
social influence from other customers

or sales persons. Therefore, Nelmapius et al. (2003) suggest that Lamb's et al. model needs to be
adapted to exclude a social dimension.

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Technology Acceptance Model

People learn and refine their shopping skills throughout their lives. Learning to shop on the
internet however, means developing a very specific set of skills and competencies, with relation
to a specific set of technologies. In acknowledgement of this fact, a number of studies of online
consumer behaviour have utilised theoretical models, which explore the relationship between
attitudes towards technology and actual use of those technologies. The most common model used
in this regard has been the Technology Acceptance Model (TAM) (Davis 1985, 1989).

The TAM is a specific application of the Theory of Reasoned Action (TRA) to the case of
technology usage. The main factors of the TAM are Perceived Ease of Use (defined by Davis as
'the degree to which a person believes that using a particular system would enhance his or her job
performance'), and Perceived Usefulness (defined by Davis as 'the

particular degree to which a person believes that using a particular system would be free of
effort'). The model states that the likelihood of technology being used is directly related to these
two factors

The TAM has been used both in its original form and in a form variously modified for use
specifically in the study of online shopping behaviour. Dishaw and Strong (1999) combined the
TAM with the Task-Technology Fit model (TTF), which states that technology will be more
likely to be used, the closer it supports ('fits') the activities of the user.

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FACTORS AFFECTING INTERNET PURCHASING BEHAVIOUR:

The nature of the consumer. This section is not organised according to any theoretical
framework, but according to subject matter. Whilst we found no figures about awareness of the
internet, or of the possibility of internet shopping, we did identify addressing a wide range of
consumer dimensions:

1. demographics
2. gender
3. sexual orientation
4. children/young people
5. people with disabilities
6. carrer
7. older people
8. cultural difference
9. ethnic difference

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ONLINE SHOPPING AND BUYING MODEL

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The Changing Trends in Online Advertising

If you are a netizen, then it is assumed that Online Advertising has played a major role in all the
activities that you have performed on the web. One shouldn‟t be a scientist or a researcher to
understand that there has been changes in the form online advertising has taken place over the
last couple of decades.

The 1990‟s saw Online Advertising primarily focused on email marketing, classifieds and banner
ads. Come the new millennium, there happened a change with contextual advertising in the form
of text ads taking the numero uno position.

2005 and beyond

Soon after 2005, Online advertising practically exploded with displays (static, rich media and
pop-ups), rich content multimedia and search engines. This latest trend has gathered the
maximum revenue and has grown in leaps and bounds.

What will drive the future?

Going into the technical specifications, Online advertising is done by keeping two factors in
consideration – users‟ demographic information and online behaviour. This is studied by
understanding the the user‟s gender, age, location, income bracket, browsing history etc. With
the changing trends, the online preferences of users‟ go through varying degrees of change. As
media buyers, the study of the following areas which are doing pretty good nowadays will
help strategize for the future –

1Mobile Technology – The drastic decrease in rates of 3G phones have made them affordable for
the common man. With figures indicating increase in data services from mobile phones, there
lies a scope of building up a partnership between media buyers and mobile content providers.
The future holds good here because presently a few companies have successfully followed this in
recent times with the introduction of mobile coupons, product campaigns, click to call services
etc.

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2. Virtual Communities – The plethora of social networking communities have started acting as a
paradise for online advertisers because these communities bridge the distances between old
friends, bring together people with same interests etc. People keep on coming back to these sites
and therein the advertiser extends the scope of its services and generates revenue.

3. Spreading the word – This is purely intentional in nature and is deliberately done to increase
the target audience. This is also termed as Viral Marketing and occurs through word of mouth
which results in a buzz being created about the ad. The first step in advertising i.e. attracting your
audience takes place through this and then after the chances of a sale increase significantly.

4. Ad Customization – The biggies in this space will soon implement this personalization of ad
concept to specific users. Extensive data analytics can reveal the details about a prospective user
and thus the advertiser can customize its ad services keeping in mind the user‟s needs, wants and
desires.
In early 2008, Julie Ruvolo wrote, “Some of the trends in Online Advertising that people talked
about were (a) Content versus community ad-targeting emerging as a major debate (b). The gap
widening between the proportion of people online, and the proportion of ad dollars spent online“.
These concerns are very genuine and our national advertisers should be able to address this issue
beforehand so that it does not become a problem for the parties involed.

For sure, Online Advertising is here to say and can only grow big. It is also expected to change
its way to reach the masses as it has done thrice over the last two decades.

Ever wondered – Which is the biggest catalyst in Online Advertising ?

It is the „money‟ that people have and generate from Online Advertising. The APIs will probably
be the biggest drivers in the emergence of a new advertising and pricing model in the near future.
Let‟s wait and watch „the change.‟

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CHAPTER – 2
(Review of literature)

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Review of Literature

Impact of online advertising

Magid Abraham (2008) studied that the internet is widely considered the most measurable of
advertising media, but those easily tracked click-throughs and e-commerce sales don't tell the
whole story. Far from it. Internet advertising stimulates off-line sales, too - in most cases, our
firm finds that online campaigns increase sales more at advertisers' retail cash registers than on
their websites. Data like that should embolden executives to shift ever more dollars to online
advertising.

Mike Bernstein (2009) Studied that the outreach of consumers to marketers has become
dramatically more important than marketers' outreach to consumers. In today's decision journey,
consumer-driven marketing is increasingly important as customers seize control of the process
and actively 'pull' information helpful to them.

Martin Croft (2008) Studied that the biggest factor reducing the impact of banner advertising on
the Internet is the growing power of the user. Online advertising, as with almost all forms of new
media marketing, is fundamentally a "pull" medium, not a "push" one. Furthermore, consumers
viewing websites increasingly dismiss old-style display ads. advertising specialists have
effectively come up with two solutions to the problem. The first is to make the display ads so
compelling that they cannot be ignored. At first, this was achieved by increasing the font size,
changing the colours and adding movement. The latest iteration of the attempt to make the
display ad more interesting is to make them interactive - for example, to include a form which
users start to fill in, in the display ad box, before they get taken to another website. There is
another way to overcome the problems with banner blindness: and that is to move away from
using display ads at all, in favour of sponsored pages or microsites or branded entertainment,
which can take the form of a game, a free download or a piece of audio or video that can be
viewed on a site.

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Mohamed Khalifa (2007) and Vanessa Liu (2007) in their study, empirically demonstrate that
although conceptually distinct, online shopping habit and online shopping experience have
similar effects on repurchase intention. They both have positive mediated effects through
satisfaction and moderate the relationship between satisfaction and online repurchase intention.
The results of a survey study involving 122 online customers provide strong support for our
research model. We also identify after-sale service, transaction efficiency, security, convenience,
and cost savings as important online shopping usefulness drivers. Theoretical and practical
implications include establishing a contingency theory to more fully explain online customer
retention as well as guidelines for development of customer relationship management initiatives.

Recent trends of online advertising

Deborah Johnson (2009) studied that the Shopsafe. co. uk, run by web company Edward
Robertson in the town's Bondgate, works with about 4,000major UK retailers - including Nike,
Marks and Spencer, Debenhams and Tesco - all of whom offer a safe online shopping
experience.Google wasn't even around then, " he said. "For us to now have 4,000 retailers on the
site and more than 350,000 unique visitors per month is great and we know that this can continue
to grow."Shopsafe. co. uk isn't just about security, it does much more, such as offer voucher
codes and advice to both consumers and retailers and there is much more we can offer as we
continue to grow."

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Ravi Kiran (2008),Anupam Sharma (2008) and KC Mittal (2008) studied that the growing use
of Internet in India provides a developing prospect for E-marketers. If E-marketers know the
factors affecting online buyers' behavior, and the relationships between these factors and the type
of online buyers, then they can further develop their marketing strategies to convert potential
customers into active ones, while retaining the existing online customers. This study focuses on
factors affecting the online buyers' behavior. It also investigates how online advertisements
influence consumers to buy online. The paper focuses on the current scenario of internet use and
attitude towards e-buying. The study uses random sampling technique with a sample size of 900
respondents comprising businessmen, academicians and students from the state of Punjab. Is E-
shopping in India a reality or is it still an uncherished dream of the Indian consumer/seller? With
this perspective in mind the current research tries to analyze the factors affecting E-shopping and
consumer concerns in online shopping. E-marketers need to focus more on research measures to
encourage the consumers to purchase online. Accurate advertisement about product features,
product warranties, avenues for customers' feedback complaints and certification of the websites
can play an important role to boost the Indian consumers' confidence on E-shopping.

Steve Hemsley (2010) studied that Consumer behaviour online is changing rapidly. Facebook
overtook Google to become the most popular site in the US last month, according to Hitwise,
demonstrating how attached consumers are to their online social lives. And access to social
media is no longer confined to our desktops. The increasing number of smartphones means that
owners have access to the web at all times.Brands are keen to capitalise on the rise of real-time
social search and Twitter search. Spending money in these areas is a must, argues Shaun
Springer, vice-president of brand and digital marketing at MasterCard. The popularity of
smartphones is also making marketers think more innovatively about mobile search, with Auto
Trader one of the latest brands to launch a search application for the iPhone. Working with
applications specialist Endeca, the car listings company has introduced a mobile app based on
number plate recognition.

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Perception of customers toward online advertising

As per the study by Larry Chiagouris, Ipshita Ray (2010) Consumers' previous shopping
experience has been found to be an important influence on future shopping intentions. Prior
internet shopping experience, however, has been largely overlooked as a moderator of attitudes
and online-retail outcomes. Specifically, key influences on online retail buying behavior such as
site reputation, advertising likeability, site security and hedonic and utilitarian shopping values
can be expected to have differential effects on intentions to repatronize an e-commerce website
based on the level of internet shopping experience by prospective buyers. This study proposes
and tests an integrated model in which level of prior internet shopping experience is treated as a
moderator of relationships among attitudinal variables and repatronage intentions with the
variable attitude toward the site as a mediator of buying intentions. Findings are consistent with
the proposed model with an interesting exception. Perceptions of site security were in the
opposite direction of the model prediction. Managerial and theoretical implications are provided
for consideration.

The study of Fen-Hui Lin, Yu-Fan Hung (2009) states that a sponsored link is an innovative
advertisement format that simplifies the advertising message with text forms. This study seeks to
investigate the perceptions and attitudes of Internet users toward the sponsored link. The research
is made up of two parts. The first part empirically tests the cause-and-effect model of
the advertising values and the advertising attitudes. Four advertising characteristics are used as
antecedent constructs: informativeness, entertainment, irritation and credibility. The second part
of the study performs a cluster analysis according to the information search degrees of Internet
users toward and how those four characteristics affect their values and attitudes vice a sponsored
link. Using 711 valid replies from the survey, the Partial Least Square analysis shows that the
credibility plays the most important role. The cluster analysis segregates the Internet searchers
into four groups: light searchers, middle searchers, heavy searchers yet using only a few
websites, and heavy searchers. Entertainment is significant for two groups and informativeness
shows no importance. The research results imply that Internet users concern more on credible or
trustworthy of sponsored links. Irritation generated negative attitudes so that the advertisers
should avoid the possible irritating effects of sponsored links such as negative or threatening
words.

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Online advertsisng effectiveness

Louise Jack (2010) Studied that advertising portals, ad networks and specialist niche sites all
contribute to online campaigns at every stage of a consumer's online journey to purchase, but the
key is to look at the complete picture rather than measuring each channel in isolation. He says
the Atlas Institute has shown that when it comes to paid search conversions, customers exposed
to display ads beforehand are 22% more likely to purchase. Other opinions are presented.

New research by Loise Jack (2010) shows the number of people overlooking ads while surfing is
increasing, and they may even ignore marketing on some of the best-known websites out there.
Consumer responsiveness to adverts on large websites, such as MSN, Tiscali and Yahoo!, has
shown a marked reduction since early 2009. This is because brands are placing too much stock in
the advertising reach of generic portal sites, according to Addvantage Media's annual Online
Advertising Report for 2010, which polled 2,232 British consumers with YouGov. Addvantage
Media managing partner Edward Tijdink says he was expecting a decline in the number of
people who pay attention to ads on large portals but admits he is surprised by the 40% reduction.
This year's research reveals that targeted advertisements on niche websites are likely to receive a
32% better response rate than standard adverts on major portal sites such as MSN. Young
professionals are the most likely to visit niche websites.

Amanda King (2008) Studied if human behavior continues down its current path, you'll spend
more time interacting in digital environments than in the real world. Throughout Asia, social
lives of the under-30s are run by digital and the under-20s won't make a move without consulting
the tribe. As real life and digital life become one, the opportunity for greater relevance and
influence grows. You just need to observe it in the right way. All companies have a behavioral
opportunity to realize; they just need to recognize and act upon it. Monitoring and analysis tells
you only so much, acknowledging and reacting to behavior will be the key to future success.

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Suzanne Bearne (2010) Studied that online display and video advertising drives users to visit a
brand's website and raises the number of search queries for the brand. The researchers examined
the effectiveness of online video and display ads for four undisclosed campaigns in the travel,
finance, government and utilities sectors. By comparing the behaviour of internet users who were
exposed to the campaigns with a control group of panellists who didn't see them, the study found
video and display ads increased brand engagement for each of the advertisers. The study also
found a declining number of people are clicking on online ads.

Kai Wang (2009),Eric TG Wang (2009),Cheng-Kiang Farn (2009) Studied that determining the
best way to utilize on-line media for advertising purposes is a critical question. This research,
based on the Elaboration Likelihood Model (ELM), incorporates consumer goal-directedness and
involvement as moderators influencing when a particular advertising strategy (i. e., variation
strategy vs. appeal strategy) will be appropriate for Web advertisements. The results of a
laboratory experiment supported the use of ELM in the Web environment and showed how
advertising strategies should be designed and implemented in accordance with consumer goal-
directedness and involvement to achieve Web advertising effectiveness. The results
demonstrated the uniqueness of the Web media and the importance of goal-directedness and
consumer involvement in the Web advertising context.

Bobby J Calder (2009) ,Edward C Malthouse (2009) ,Ute Schaedel (2009) research that
consumer engagement with a website, provide a systematic approach to examining the types of
engagement produced by specific experiences, and show that engagement with the media context
increases advertising effectiveness. Based on experiments using measurement scales involving
eight different online experiences, we advance two types of engagement with online media -
Personal and Social-Interactive Engagement. Our results show that both types are positively
associated with advertising effectiveness. Moreover, Social-Interactive Engagement, which is
more uniquely characteristic of the web as a medium, is shown to affect advertising after
controlling for Personal Engagement. Our results offer online companies and advertisers new
metrics and advertising strategies.

~ 27 ~
Daisy Whitney (2010) studied that as more brands shift to buying audiences online rather than
buying specific sites, a mini industry of verification services has sprung up to ensure the ads that
are increasingly placed through ad networks and exchanges are appearing where they're
supposed to. The concern over placement is well-founded, and the ad verifiers do a brisk
business by showing marketers where their ads are actually running. Kent Wakeford, co-founder
and chief revenue officer with AdSafe, said he's come across the following ad placements on the
Web: major auto companies on pornographic pages, insurance companies on escort-services
Web sites, and a telecom firm on a white supremacist site, among other examples.

~ 28 ~
Trust and Security aspect of online advertising

Mike Boyd (2005) studied about the safety aspects of cybershopping and stated that if you're one
of those people who dread battling the holiday crowds at the mall, you've probably considered
doing at least some of your seasonal shopping online.And while pointing and clicking your way
to the bottom of your holiday list can prove faster than picking up presents the old fashioned
way, there can be drawbacks and pitfalls associated with shopping cyberspace.The Web is a
wonderful place, but just because you're shopping from the safety and security of your home or
office doesn't mean that you're completely safe or secure. There are things you can do, however,
to limit your Internetshopping liabilities.The Better Business Bureau of Southern Colorado, the
National Consumers League and the National Cyber Security Alliance issued the following
advice to ensure a safe online shopping experience and to protect consumers from scams:*Know
who you're dealing with. This may sound like a no-brainer, but not everyone with a presence on
the Internet is legitimate.You can check out unfamiliar sellers online at www.bbb.org or by
calling (866) 206- 1094. The groups recommend that you never purchase items advertised in
unsolicited e-mails from unknown companies because these are often fraudulent offers. *Get all
the details. Again, a no-brainer. But how many of us actually take the time to check the name
and physical address of an online seller? I'd have to plead guilty to being lackadaisical on this
one. The BBB, league and alliance also recommend checking how much the product costs, what
is included in the price, what the shipping charges are, the delivery rate, the seller's privacy
policy and the cancellation and return policy.*Make sure the Web site is secure. I can probably
stop the no-brainer thing, right?

~ 29 ~
Elizabeth Taylor Quilliam, Nora J Rifon, Robert Larose (2006) studied that The Internet offers
consumers a multitude of benefits including ready access to information, instantaneous
communication, and twenty-four-hour shopping. Yet the benefits of this evolving technology are
mirrored by an explosive growth of new risks. The burgeoning of both threats and solutions
augments the challenge to online consumers. This study is a preliminary qualitative examination
of adult and teen perceptions of online privacy threats, self-protection capabilities, and
behaviors, using a social-cognitive model of i-Safety. The model incorporates concepts from
Protection Motivation Theory, along with involvement and personal responsibility, to provide a
framework for understanding individual online protective behaviors. The preliminary results of
the study indicates that adults and teens do not approach online privacy the same way. Yet
adolescent use of the Internet and e-commerce are both growing with implications
for online revenue near- and long-term. Marketers and regulators need to consider alternative
protections for the online teen population and deal with consumer privacy and fraud issues in
order to assure continued e-commerce growth

This research by Michael Francis Walsh (2010) explores the concept of ad avoidance in the
internet media and compares this to traditional media - integrating two separate research streams.
In addition, the psychological construct, locus of control is examined as a predictor of ad
avoidance. The results of a survey show ad avoidance is more prevalent in the internet medium
compared to traditional media. Compared to television, radio, newspaper and magazines, the
internet exhibits greater usage, greater breadth of usage, more negative attitudes towards
advertising and higher communication consumption problems. Breadth of media usage, attitudes
towards advertising and the search hindrance characteristics of advertising were found to be
significant predictors of ad avoidance across all studied media suggesting a general model for ad
avoidance. Individuals with a high internal locus of control take more active measures to avoid
ads on the internet.

~ 30 ~
New research by Jo Roberts (2010) reveals that the majority of internet users see behavioural
targeting akin to "Big Brother". According to the 2010 Online Advertising Report, which polled
more than 2,000 consumers, more than half said they would unsubscribe from adverts based on
behavioural targeting if they were given an opportunity. The online advertising industry is set to
grow by more than 7% this year, according to the European Interactive Advertising Association.
But behavioural targeting is not growing in relevancy, according to the study, with 53% of
respondents claiming they would make behavioural targeted adverts go away if it was possible.
People don't like the thought of their every move online being tracked, says Edward Tijdink,
managing partner at Addvantage Media. Privacy concerns make consumers feel uncomfortable
about online advertising practices.

Suzanne Bearne (2008) studied that the industry retail body the IMRG Retail Group, customer
satisfaction levels when shopping online were high in the last quarter of 2007. The latest
benchmark of etailing, part of a joint venture with eDigital Research and Maximiles-operated
ipoints.co.uk, found high levels of customer satisfaction.

~ 31 ~
 CHAPTER – 3
(Objectives)

(Research Methodology)

~ 32 ~
 OBJECTIVES

1 Consumer attitude & awareness towards online advertising as a promotional and

online shopping tool.

2 Confidence about the reliability and security of the online advertisement among
customers.

3 Study about the advantages and the failures of the concept of online advertising.

4 Trend of online advertising in India and its impact on Indian consumers.

~ 33 ~
 Research Methodology

1 Research Design

Exploratory research design- In this research design the research is done by taking each and
every aspect of the problem.A detailed analysis or in depth study of the problem is done in this
research design.

Descriptive research design-This research design include a brief and overall study of the
problem and giving a descriptive study about that particular problem or study.It study the just
problem based study and include the aspects like attitute and behavior or the prefferences of the
consumers.

Causal research design - This research design include study of the both problem and its causes
in detail.

The most suitable research design that we used for our study is descriptive research design
because descriptive research design provides us information about the effects on consumers,their
purchasing behavior and their prefferences regarding the online advertising.Thus it gives us
problem based solutions regarding the study.

2 Research Approaches

Qualitative research approach - This research approach enables us to study the qualitatives
aspects of the study.As the consumer behavior,attitude.influences,prefferences regarding the
online advertising.This can be recorded through coding.

Quantitative research approach - this research approach enables us to study the statistical and
the quantifiable aspect of the study.In this research the data collected is analysed to interpret the
result regarding the study.t,z & Anova test are performed as per their applicability on the sample
size.

~ 34 ~
3 Research Structure

Research structure reffers to the entire framework of the research study.

Experimental-includes causal study

Survey - includes the data collection through questionaire

History - The in depth study of past and present trends to estimate the future trends.

Thus the research structure on which our research study is based in the survey method because
our entire data collection and interpretation of the result regarding measuring the consumer
behavior toward online advertising is based on the questionaire and survey

4 Data sources

Primary data source - through questionnaire and survey

Secondary data source - through internet and review of literature

5 Universe of study

Sample size - 50

Sampling technique - non probability sampling technique (convenience sampling as per the
personal convenience regarding the area)

Area - Jalandhar

~ 35 ~
 Seconndary data about the online shopping trend in India

ONLINE SHOPPING IN INDIA

It is a fact that a great online shopping revolution is expected in India in the coming years. There

is a huge purchasing power of a youth population aged 18-40 in the urban area.

Source-Scribd

If we observe the growth of Indian online transactions from the above graph, it is getting doubled
year by year. The usage of internet in India is only 4% of the total population. This is also getting
increased

day by day as the costs of computers are decreasing and net penetration is increasing. The cost of
internet usage is also getting lower, with good competition among the providers. Wi-Fi &
Wimax is also getting tested in Bangalore and other cities in India. This will increase the usage
as it goes more on wireless internet. Indians are proving everytime that they can beat the world
when it comes to figures of online shopping. More and more Indians are going to online
shopping and the frequency of India‟s online buying is crossing the overall global averages.

~ 36 ~
Factors That Boost Online Shopping in India

Rapid growth of cybercafés across India

Access to Information

The increase in number of computer users

Reach to net services through broadband

Middle-class population with spending power is growing. There are about 200 million of
middle-class population good spending powers. These people have very little time to spend for
shopping. Many of them have started to depend on internet to satisfy their shopping desires.

Few Facts About Online Shopping

The figures from IAMAI show that the internet users in India will grow to 200 million by 2010.
Around 25% of regular shoppers in India are in the 18-25 age groups, and 46% are in the 26-35-
year range.

Indian online matrimonial sector is worth around $230 million.

Worldwide e-commerce is only growing at the rate of 28%, since India being a younger market,
the growth of e-commerce is expected at 51% in the coming years.

Inline with global trends finally India has also started shopping online these days. As per the
study by IAMAI online shopping in India has rose from $11million in 1999-2000 to $522
million in 2007 and it is expected to rise above $700 million by end March 2010.

Indians are also Shopaholics like other Asians. There is a strong booming young adult
population in India with good levels of disposable income.

~ 37 ~
INDIA - Over $50 Billion and growing rapidly - Most popular online shopping products include:

books (45%), electronic gadgets (42%), railway tickets (38%), accessories apparel (35%),

apparel (35%), gifts (34%), computer and peripherals (32%), airline tickets (28%), music

downloads (21%), movie downloads (21%), hotel rooms (22%), magazines (18%), tools (16%),

home appliances (16%), toys (16%), jewelry (17%), movie ticket (15%), beauty products (12%),

health and fitness products (12%), apparel gift certificates( 11%) and sporting goods (7%).

There are over 120 million people online in India and this is expected to grow to 200 Million by
the end of 2010

CHANGING ATTITUDE TOWARDS ONLINE SHOPPING

Malls malls springing up everywhere and yet people are e-shopping! And not in small numbers
either. E-commerce figures are going through the roof, according to Assocham (Associated
Chambers of Commerce & Industry of India). Today (2007-08) the figures are touching Rs. 2200
crore, but are expected to increase by 150 percent by 2008-09 - to Rs 5,500 crores! And two
metros - Delhi and Mumbai are driving the growth:

It was never thought that Indians would go in for e-shopping in such a big way.Ticketing, travel
bookings and even books and movies seem fine to buy online. Knowing that in India sizes vary
from brand to brand and quality is inconsistent, even of some electronic items, how is it that
there are people buying these items online?

Well, Assocham says that books are the hottest selling item on the internet. In fact most products
bought and sold off online are: books, electronic gadgets and railway tickets. However, people
are also buying clothes, gifts, computer and peripherals, and a few are buying home tools and
products, home appliances, toys, jewelry, beauty products and health and fitness products.
Traffic for e-commerce sites is mostly coming from the two metros of Delhi and Mumbai

~ 38 ~
Here are few reasons for this :

1. Convenience

It is the major reason. Both the cities are spread out over a large area and the best stores in both
these cities are often concentrated in certain „posh‟ areas. In Mumbai for example there are
certain items you get only in Crawford market which is at the other end of town

in South Mumbai. And demographics show that the population of Mumbai is nowconcentrated in
the suburbs. Ofcourse, huge malls have come up in the suburbs as well,and India‟s biggest mall
Nirmal Lifestyle is in far-flung Mulund but often you find a better choice of sizes and styles
choice in other malls, say Phoenix (central Mumbai). And though both Mumbai and Delhi have
transport system,few people like to travel for two hours just to get to a shop at the other end of
town. Clearly the transport systems leave much to be desired. In Delhi, safety is also an issue for
women traveling alone in the evenings.

2. Literacy Rate and the Cities’ Internet Savvy Population

Most cities in India have a higher literacy rate as compared to the national average of 64.8
percent. In fact Mumbai has a highest literacy even amongst the cities (86 per cent). Delhi too
has a high literate population (81.2 per cent). Oddly, although Bangalore has a higher literacy
rate than Delhi, at 83 per cent, the city‟s share of e-commerce is not very high. Kolkatta too has a
literacy rate (80.8 per cent) and so does Chennai (80.1 percent.) If one compares these rates to
literacy rates of cities like Patna (62.9 percent), Jaipur (67 percent), Indore (72 percent) or
Warangal (73 percent) its clear why its the metros which are going to continue to lead e-
shopping.

3. Home delivery concept

In any case, home delivery is a concept that Indians are familiar with and love. The mall craze
has started only now.Earlier it was a choice between sweating it out in small crowded markets, or
asking a friendly neighbourhood kirana (grocer) to deliver groceries home and this system is still
thriving.

~ 39 ~
4. Increase in the Internet users

Increasing penetration of Internet connectivity and PCs has led to an increase in the Internet
users across India. The demographic segments that have witnessed maximum growth comprise
college going students and young persons. These segments are the users of advanced applications
and technologies online and are most likely to be heavy Ecommerce users

5. Increase in the number of buyers and sellers

The success of a marketplace depends on the presence of a large number of buyers and a large
number of sellers. In addition to online buyers, many offline stores have begun to sell their
products in the online marketplace. The greater the number of sellers and buyers,the faster the
market grows.

PRODUCT PREFERENCES CITY WISE

· Bangalore loves to buy books, electronic gadgets, computer peripherals, gifts movies,
bookings,actually just about everthing.

· Well, Kolkatta prefers to buy music and movies online

· Mumbai leads in all categories, except jewellery.

· Delhites seem to prefer buying jewellery online as compared to any other city

~ 40 ~
CHAPTER – 4
(Data Analysis)

~ 41 ~
 Data Analysis and Interpretation
PROFESSION/ OCCUPATION:-
Frequency Table

Cumulative
Frequency Percent Percent
Housewife 1 2.0 2.0
Business 11 22.0 24.0
Doctor 4 8.0 32.0
Teacher 5 10.0 42.0
private job 7 14.0 56.0
engg. 2 4.0 60.0
govt.emp. 7 14.0 74.0
any other 13 26.0 100.0
Total 50 100.0

Frequency of occupation

Interpretation:-

As per the survey conducted on 50 respondents we find that maximum respondents are from any
other occupations that we mention. It can be students or etc. and the minimum respondents are
the housewives.

~ 42 ~
MONTHLY INCOME

Cumulative
Frequency Percent Percent
below 10000 15 30.0 30.0
10000-30000 20 40.0 70.0
30000 above 15 30.0 100.0
Total 50 100.0

Frequency of income groups

Interpretation:-

Maximum respondents are in the group of income 10000-30000 that is 40% and the respondents
lies in the group of income below 10000 and above 30000 are 30% each.

~ 43 ~
Q1. How many times do you use the internet in a week?

Cumulative
Frequency Percent Percent
daily user 35 70.0 70.0
don't use 2 4.0 74.0
1-3 days 5 10.0 84.0
3-6 days 8 16.0 100.0
Total 50 100.0

Frequency of internet usage

Interpretation

We found that about 70% of the respondents are daily user of internet and just 4% that don‟t use
internet.

~ 44 ~
Q2. What is your objective behind using the internet?

Cumulative
Frequency Percent Percent
personal use 22 44.0 44.0
Search 9 18.0 62.0
official work 14 28.0 90.0
fun purpose 3 6.0 96.0
online shopping 2 4.0 100.0
Total 50 100.0

Frequency of the purposes of the usage of the internet

Interpretation

As per the result of the questionnaire conducted on 50 respondents we conclude that about 44%
of respondents use internet for their personal use and 28% uses for the official purpose and
minimum is for online shopping purpose.

~ 45 ~
Q3. Do you see or observe the online advertisement shown on the websites?

Cumulative
Frequency Percent Percent
yes 46 92.0 92.0
no 4 8.0 100.0
Total 50 100.0

Frequency of observation of online advertisement

Interpretation
About 92% of the total respondents admits that they do observes the online advertisements
whenever they use the internet.

~ 46 ~
Q4. Which online advertisement would you prefer watching the most?

Cumulative
Frequency Percent Percent
Matrimonial 7 14.0 14.0
Tourisam 5 10.0 24.0
Hospitality 3 6.0 30.0
Healthcare 3 6.0 36.0
Music 19 38.0 74.0
Books 2 4.0 78.0
apparels and accessories 1 2.0 80.0
Gifts 2 4.0 84.0
Gadgets 2 4.0 88.0
Banking 3 6.0 94.0
any other 3 6.0 100.0
Total 50 100.0

Frequency of advertisement prefer online

Interpretation

Maximum of the respondents prefer watching the music and matrimonial advertisements online
and the minimum of the respondents watch the apparels and accessories advertisements online as
per the result of our survey conducted in jalandhar on 50 respondents.

~ 47 ~
Q5. Do online advertising fulfill your security requirements?

Cumulative
Frequency Percent Percent
yes 36 72.0 72.0
no 14 28.0 100.0
Total 50 100.0

Frequency of the security

Interpretation

Maximum respondents feel that the online advertisements fulfill their security requirements.

~ 48 ~
Q6. Which products would you prefer to buy by watching online advertisement?
Cumulative
Frequency Percent Percent
Books 15 30.0 30.0
cd and dvd 12 24.0 54.0
hospitality and tourism services 9 18.0 72.0
healthcare and beauty product 3 6.0 78.0
electronic gadgets 9 18.0 96.0
any other 2 4.0 100.0
Total 50 100.0

Frequency of product preferred by watching online advertisement

Interpretation

Maximum respondents prefer buying products like cd and dvd and books after watching online
advertisements.

~ 49 ~
Q7. Have you purchased anything online?

Cumulative
Frequency Percent Percent
yes 34 68.0 68.0
no 16 32.0 100.0
Total 50 100.0

Frequency of online purchasing

Interpretation
As per the data collected we conclude that about 68% of the respondents purchased any product
online and the 32% of the respondents have not purchased anything online.

~ 50 ~
Q8. How was the experience?

Cumulative
Frequency Percent Percent
Satisfied 26 52.0 76.5
not satisfied 3 6.0 85.3
Average 5 10.0 100.0
Total 34 68.0
Missing System 16 32.0
Total 50 100.0

Frequency of experience of online purchase

Interpretation

As per the data collected about 52% respondents are satisfied from the online purchase about
32% of respondents skip this question because they have not purchased anything online.

~ 51 ~
Q9. If you are a habitual online customer then how many times would you shop online in a
month?

Cumulative
Frequency Percent Percent
1-5 22 44.0 66.7
6-10 9 18.0 90.9
11-15 3 6.0 100.0
Total 33 66.0
Missing System 16 32.0
Total 50 100.0

Frequency of monthly purchase

Interpretation
Among the respondents who purchase online about 44% respondents use to purchase online 1-5
times a month and about 18% use to purchase 6-10 times in a month.32% of the respondents do
not purchase anything online thus skip the question.

~ 52 ~
Q10. Do these online advertisements drive your mind towards purchasing a product?

Cumulative
Frequency Percent Percent
yes 34 68.0 68.0
no 16 32.0 100.0
Total 50 100.0

Frequency of influences towards online advertisement

Interpretation
About 68% of the respondents feel that the online advertisement influence the customers to
purchase the product and about 32% don‟t think so.

~ 53 ~
Q11. Which factor drives you towards online advertising?

Cumulative
Frequency Percent Percent
Convenience 26 52.0 52.0
fast and time saving 22 44.0 96.0
Trustworthy 2 4.0 100.0
Total 50 100.0

Frequency of factor drives towards online advertisement

Interpretation
Almost all the respondents feel that online advertisements are convenient and time saving mean
of online shopping.

~ 54 ~
Q12. Do you Personally think that online advertising is a good promotional and online shopping
tool?

Cumulative
Frequency Percent Percent
Yes 44 88.0 88.0
No 6 12.0 100.0
Total 50 100.0

Frequency of online advertisement as a good promotion & shopping tools

Interpretation
Most of the respondents feel that online advertisement is a good promotional as well as good
shopping tool.

~ 55 ~
Q13. Should Online Advertising enhanced and more promoted?

Cumulative
Frequency Percent Percent
yes 44 88.0 88.0
no 6 12.0 100.0
Total 50 100.0

Frequency of promotion of online advertisement

Interpretation
Almost 88% of the respondents think that online advertisement should be promoted more as it is
a good promotional tool and provide detailed information about the products online.

~ 56 ~
 Factor Analysis

Q14 How would you rate the following factor related to online advertisement on scale of 1-5?

Factor analysis output

Communalities

Initial Extraction

Familiar 1.000 .735

Positive 1.000 .774

converted online shopping 1.000 .583

Trust 1.000 .746

time saving 1.000 .807

good promotional tool 1.000 .797

advertisement promotion 1.000 .670

online transaction 1.000 .742

cheated while online

1.000 .710
shopping

Awareness 1.000 .644

provide shopping
1.000 .732
anytime/anywhere

24*7 shopping 1.000 .824

effects purchase decision 1.000 .596

covers promotion of all

1.000 .759
products and services

covers details of all product

1.000 .761
and services

Extraction Method: Principal Component Analysis.

~ 57 ~
 a
Component Matrix

Component

1 2 3 4 5 6

Familiar -.024 -.088 .702 -.193 .427 .117

Positive -.179 .446 .635 -.296 -.162 .159

converted online shopping .628 .253 -.076 .219 .013 .266

Trust -.199 .260 .463 .545 -.356 .038

time saving -.320 .234 -.072 .769 .226 .041

good promotional tool -.366 .599 -.035 .202 .504 .088

advertisement promotion .717 -.236 .134 .153 .242 -.001

online transaction .421 -.415 .218 .213 -.162 -.523

cheated while online

.617 -.181 .225 .046 -.294 .397
shopping

Awareness .491 .388 .237 .108 .213 -.373

provide shopping
.525 .406 -.184 -.210 .371 .275
anytime/anywhere

24*7 shopping .718 .378 -.039 -.089 .138 -.371

effects purchase decision .604 -.002 -.114 .228 -.230 .338

covers promotion of all

-.005 .810 .032 -.065 -.283 -.133
products and services

covers details of all product

.069 .734 -.205 -.165 -.376 -.087
and services

Extraction Method: Principal Component Analysis.

a. 6 components extracted.

~ 58 ~
 a
Rotated Component Matrix

Component

1 2 3 4 5 6

Familiar -.323 -.074 .129 .052 -.027 .778

Positive .441 -.054 -.074 -.029 .173 .735

converted online shopping .117 .682 .275 .131 -.082 -.067

Trust .197 .102 -.028 .179 .795 .180

time saving -.093 -.022 -.009 .740 .451 -.216

good promotional tool .212 -.201 .030 .826 -.064 .159

advertisement promotion -.395 .491 .496 -.120 -.109 .026

online transaction -.331 .027 .528 -.470 .321 -.170

cheated while online

-.093 .737 .026 -.360 .077 .146
shopping

Awareness .163 .126 .756 .106 .017 .137

provide shopping
.195 .450 .271 .257 -.582 .111
anytime/anywhere

24*7 shopping .267 .248 .784 -.065 -.261 -.058

effects purchase decision .023 .739 .075 -.105 .023 -.178

covers promotion of all

.825 -.010 .183 .157 .109 .083
products and services

covers details of all product

.857 .057 .091 .039 -.046 -.107
and services

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 12 iterations.

~ 59 ~
 Factor analysis interpretation

Factors/conclusion Statement Loaded Eager Value

Factor – 1 Detail of all goods & services .857

Trustworthy promotional tool Cover all promotional tools .825

Not cheated -.093

Factor – 2 Convertible into online .682

shopping
Strong online tool that effects
purchase decision Advertisement promotion
.491
Anytime anywhere shopping
.450
Effect purchase decision
.739

Factor – 3 24*7 shopping .784

Spread Awareness and easy Awareness .756

shopping tool
Online transaction .528

Factor – 4 Time saving .740

Fast and convenient shopping Good promotion tool .826

tool
Anytime anywhere shopping .275

Factor – 5 Trustworthy .795

Trustworthy for online Online transaction .321

payments

Factor – 6 Familiar .778

Positive attitude towards Positive customer attitude .735

online advertisements

~ 60 ~
 CHAPTER – 5
(Conclusion & suggestion)

~ 61 ~
 Conclusion/Findings
Our project research is in regard to study the consumer behavior towards the online
advertisement. Thus to study that we have conducted a survey with vthe help of questionnaire in
the jalandhar region on the sample of 50 respondents. After studying the response of the
respondents we found that :-

 Almost all the income groups whwther low or high are the daily user of the internet as
nowdays internet is easily available everywhere.
 As per the data collected maximum user of internet uses it for personal or official use.
 It is concluded from our survey that almost all the users of internet observes or watch the
online advertisement.
 Maximun online purchases is for the books, music , healthcare and matrimonial.
 Almost 68% people think that it is a secure source of shopping.
 Out of these we found that almost 52% are satisfied from the online advertisements and
online shopping.
 Maximun people go for online shopping nowdays because they think that it is much
convenient and faster way for shopping.
 A strong group that is 88% people feel that online advertisement is good promotional tool
for awareness of the global brands and local brands also.Thus they think that online
advertisement should be more promoted.

Thus as per our study we found that online advertisement is good and trustworthy and a
convenient tool for promotion as well as shopping in this modern era. Thus companies are
putting more emphasis on online shopping as the cost per exposure is much less for these
advertisement. Also various tie ups with the social networking sites are enhanced as online
advertisement regarded as much effective promotional tool.

~ 62 ~
CHAPTER – 6
(Appendices)

~ 63 ~
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9&VName=PQD (review of literature) [viewed on 3/5/2010]

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Sep 2008. Vol. 15, Iss. 3;pg. 55, 19 pgs (review of literature 21)

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 QUESTIONAIRE

Dear Sir/Madam

I am a student of BBA (Hons) 4th semester (L.P.U). I am doing my capstone

project: A Study on Consumer Behaviour towards Online Advertising Sir/Madam I need to get
a questionnaire filled by you .All the data and information you provide will be kept confidential
and will be used only for the academics purpose.

NAME: _______________________________________

CONTACT NO.: _______________________________

GENDER:  Male  Female

PROFESSION/ OCCUPATION:-

HouseWife Business Doctor Teacher

Private job Engg. Govt. employee any other

MONTHLY INCOME: - Below 10000 10000-30000 30000 above

Q1. How many times do you use the internet in a week?

A. Daily user
B. Don‟t use
C. 1-3 days
D. 3-6 days

Q2. What is your objective behind using the internet?

A. Personal use
B. Search
C. Official work
D. Fun purpose
E. Online shopping

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Q3. Do you see or observe the online advertisement shown on the Websites?

A. Yes
B. No

Q4. Which online advertisement would you prefer watching the most?

A. Matrimonials
B. Tourism
C. Hospitality
D. Healthcare
E. Music
F. Books
G. Apparels and accessories
H. Gifts
I. Gadgets
J. Banking
k. Any other (_______)

Q5. Do online advertising fulfill your security requirements?

A. Yes
B. No

Q6. Which products would you prefer to buy by watching online advertisement?

A. Books
B. CD‟S OR DVD‟S
C. Hospitality and tourism services
D. Healthcare and beauty products
E. Electronic gadgets
G. Any other (________)

Q7. Have you purchased anything online?

A. Yes
B. No

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Q8. How was the experience?

A. Satisfied
B. Not satisfied
C. Average

Q9. If you are a habitual online customer then how many times would you shop online in a
month? (FILL IF APPLICABLE)

A. 1-5
B. 6-10
C. 11-15
D. More than 15

Q10. Do these online advertisements drive your mind towards purchasing a product?

A. Yes
B. No

Q11. Which factor drives you towards online advertising?

A. Convenience
B. Faster and Time saving
C. Trustworthy

Q12. Do you Personally think that online advertising is a good promotional and online shopping
tool?

A. Yes
B. No

Q13. Should Online Advertising enhanced and more promoted?

A. Yes
B. No

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Q14 How would you rate the following factor related to online advertisement on scale of 1-5?

FACTOR 1 2 3 4 5
Strongly Agree Can‟t say Disagree Strongly
agree disagree
I am familiar with the usage of
internet
I feel positive towards online
advertisement
I feel it can be converted to online
shopping
I trust the online advertisement
I feel it is time saving
I feel it is a good promotional tool
I feel online advertisement should be
promoted
I feel it is secure to do online
transaction
I have never felt cheated or deceive
while online shopping
I feel online advertisement aware me
about the global brand.
I feel that online advertisement
provide anytime anywhere shopping
I feel that online advertisement
provide me 24*7 shopping.
I feel that online advertisement
effects my purchase decision
I feel that online advertisement
covers promotion of all the products
and services.
I feel that online advertisement
covers all the details about that
specific product or services.

Any other suggestions

________________________________________________________________________
___________________________________

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