Online Effectiveness of online advertising on customer buying behaviour

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Effectiveness of online advertising on customer buying behaviour

(Case study of mobile phone industry)

BY:

Student Number: L0066ZALZAL1114

Supervised by: Dr. Rajendra Kumar

This research project is submitted as part of the requirements for the award of Master of Business Administration at Cardiff Metropolitan University

November 2015

Abstract

This study aimed at studying the effectiveness of online advertisement on consumer buying behaviour. The study majored on the Mobile Phone industry. The main aim of the study was to establish whether online advertisement is effective in influencing the buying behaviour and pattern of the consumers. To answer this main question, the study also sought to provide answers to the following questions; what are the types of online advertisements? What is the perception of the consumers on online advertisement? And, What is the effect of online advertisement on consumer behaviour?

The study involved collecting data from 50 respondents. A questionnaire was used as a tool for data collection. It took two days to collect data, and 2 days to analyse the collected data. The study found out that online advertisement is effective in influencing the consumer buying behaviour. 74% of the respondents recorded having been influenced by the information that was conveyed in an online advert to purchase a mobile phone. This confirmed the hypothesis that online advertisement is very effect in influencing the consumer behaviour in making purchasing decisions for mobile phones.

Acknowledgements

I would like to first of all thank my supervisor, Dr. Rajendra Kumar for his constructive criticism and effective guidance during my project. Through his experience, I have learnt many new things that will be valuable for my future career. I will also like to express my gratefulness to my parents for their immense support both financially and emotionally. Many thanks also go to my friends for their encouragement I have had a blast and unforgettable memories with you guys.

List of Figures

Figure 1.0: Structure of the dissertation diagram…………………………..………4

Figure 2.1: Conceptual framework............................................................................23 

Figure 4.1: Gender....................................................................................................36

Figure 4.2: Age bracket of the respondents..............................................................38

Figure 4.3 Income level.............................................................................................40

Figure 4.4: Time spent online in a day......................................................................42

Figure 4.5: Internet usage..........................................................................................43

Figure 4.6: Effects of online advertisement on consumer purchasing behaviour......45

Figure 4.7 The perception of consumers on online advertising.................................46

Figure 4.8 Types of online advertising......................................................................48

Figure 4.9: Recommendations on online advertisement............................................51

List of Tables

Table 3.1 Study Sample Size....................................................................................33

Table 4.1: Gender.....................................................................................................37

Table 4.2: Age bracket of the respondents...............................................................39

Table: 4.3 Income level.............................................................................................40

Table 4.4: Time spent online in a day.......................................................................41

Table 4.5: Internet usage...........................................................................................43

Table 4.6: Effects of online advertisement on consumer purchasing behaviour.......45

Table 4.7 The perception of consumers on online advertising..................................46

Table 4.8 Types of online advertising.......................................................................48

Table 4.9: Recommendations on online advertisement.............................................50

Table of Contents

Abstract        i

Acknowledgements        ii

List of Figures        iii

List of Tables        iv

CHAPTER ONE: INTRODUTION OF THE STUDY        1

1.0 Introduction        1

1.1 Background of Study        1

1.2 Objectives of the study        2

1.3 Research Questions        3

1.4 Justification of the study        3

1.5 Research overview        3

CHAPTER TWO: LITERATURE REVIEW        5

2.0 Introduction        5

2.1 Influence of Online Marketing on Consumers        5

2.2 Effect of Online advertisement on Consumer behaviour        9

2.3 Online marketing adoption        13

2.4 Search of online information by the consumers        14

2.5 Online advertising issues        14

2.5.1 Customer relationship building        15

2.5.2 Ethical issues of online advertising        15

2.6 Online advertising and consumer behaviours        17

2.7 Advantages and disadvantages of online advertising        18

2.8 Different types of online advertising        21

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