Scholars Journal of Economics, Business and Management e-issn 2348-5302



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Scholars Journal of Economics, Business and Management e-issn 2348-5302 Chandoriya KR.; Sch J Econ Bus Manag, 2014; 1(3):93-97 p-issn 2348-8875 SAS Publishers (Scholars Academic and Scientific Publishers) (An International Publisher for Academic and Scientific Resources) Impact of Internet Advertising upon Consumers of Madhya - Pradesh Kapil Raj Chandoriya Research Scholar, School of Studies in Management, Jiwaji University Gwalior (M.P.) 474002, India. *Corresponding Author: Kapil Raj Chandoriya; Email: Abstract: Now days, Internet advertising is a popular and simple way to make consumers aware about the products and services. Internet advertising refers to a paid form of promotion that uses digital media such as the internet. Also, Internet advertising is advantageous because it is not limited by time or geographical boundaries. Internet advertising is also famous among the youngsters when they make purchase decisions for right products or services. They browse several products advertisements and compare among them and then they purchase directly with several discount offers. Now the companies are also providing cash on delivery facility to consumers and also replace the faulty items. These sales promotion schemes provided by the companies are display on the internet advertisements. The main purpose of this research study is to know how internet advertising affects Indian urban consumers and also know whether consumers have enjoyed it or ignored it. This paper also focuses on whether the internet advertisement is gaining faith of consumer with all facilities and difficulties. Present research will also suggest the ways to make internet advertising more popular. Keywords: Internet, Advertising, Consumers, Promotion, Products. INTRODUCTION Internet advertising is powerful and effective medium for introduced new products and changes in particular products in markets [1]. Today there so many people get shopping through online it is easy and reliable, but time to time provided best offers and payment facility like cash on delivery etc. online advertising play important role in supporting a rich diversity of content, services, and applications provided without charge to Internet users. Present days everybody is totally depended on the internet than other tools so company provides advertisement on internet and direct to consumers with all features and facility these Internets advertising replaced traditional advertising in present years. Advertising on the Internet has the dual benefit of being generally more efficient and effective compared to other media channels. Businessmen rely on a few things to succeed and sustain. The primary goal of a business, which will never really change, is building and sustaining a strong customer base. This is what sales and marketing teams spend their days working on, and this is why developers and designers build the best product they can. The term advertising refers to a type of communication through which audience or consumers are persuaded to take some action. It is a medium for showcasing a product, its features so that consumers have the urge to buy it. From the inception of this crucial marketing tool, advertising has had traditional forms starting with print media comprising newspapers, magazines, fliers and leaflets apart from outdoor advertising which covers hoardings and billboards and broadcast advertising which includes television, radio and the Internet [2]. Online advertising has been recognized as one of efficient and effective means for marketing and advertising due to its global visibility, low-cost, effective performance tracking and measurement [3]. The importance of advertising is so popular that in people mind, marketing term is synonymous with advertising. The Internet has become a major source of information consumption, and to some extent, has replaced old media such as the radio, television and the newspaper [4]. Internet advertising is the expanding attention as communication effectiveness [5] but teenagers do not fully understand the impact that advertising has on them [6]. The Internet has become a major source of information consumption, and to some extent, has replaced old media such as the radio, television and the newspaper [7]. The internet is widely considered the most measurable of advertising media. Advertisers who run online advertising campaigns often utilize multiple publishers concurrently to deliver ads [8-9]. Good advertising requires competent personnel including a number of specialists to enable it thrive in the ever dynamic and competitive business environment [10]. It has been reported that by 2000 online advertising spending in the United States reached $8.2 billion dollars [11] and online advertising accounts for almost 9 percent of all advertising in the United States [12]. Growth of internet advertising media attracts the Available Online: http://saspjournals.com/sjebm 93

attention of advertisers as a more productive source to bring in consumers [13]. Objectives of the Study To design standardized measure to evaluate Internet Advertising, Urban Consumers and Buying Behaviour. To establish cause and effect relation between internet advertising and urban consumers. To evaluate the mediating impact of internet advertising. RESEARCH METHODOLOGY The study will be causal in nature. The data will be collected through survey method and relationship will be developed using statistical tools. Sample Design Population: The population for the study will include all the people from Gwalior. Sampling Frame: All the student and working person of the Gwalior city will be sampling frame. Sampling Elements: Individual respondent will be sampling element of the study. Sample Size: Sample size will be 250 respondents of Gwalior. The data will be collected by the researcher himself after developing rapport with the respondents. Tools to be Used for Data Collection Self design questionnaire will be used to measures all the variables. The data will be collected on the scale of 1-5 Likert s scale. (1-Always, 2-Often, 3-Sometimes, 4- Seldom 5-Never) Tools to Used for Data Analysis 1. Reliability 2. Regression Analysis OBSERVATION AND RESULTS Reliability Test for All Variables Reliability test for all the variables were carried out by using SPSS software and the reliability test measures are given below: Reliability Statistics Variables Cronbach's Alpha N of Items Internet Advertising.823 5 Customer Attraction.801 5 Buying Behaviour.743 5 It is being considered that reliability should be more than 0.7 as it can be seen in both table that the reliability through cronbach alpha test is more than the standard value, hence the three questionnaires were highly reliable. A. Linear Regression between Internet Advertising and Customer Attraction The regression was calculated by taking the total of internet advertising and customer attraction by using SPSS software. In this the internet advertising was independent variable and customer attraction was the dependent variable. Therefore, regression is calculated by taking dependent and independent variable. Null Hypothesis (H 0 ). There is no relationship between Internet Advertising on customer attraction. Alternative Null Hypothesis (H 0 ). There is relationship between Internet Advertising on customer attraction. Summary 1.643 a.413.410 1.131 Sum of Squares df Mean Square F Sig. 1 Regression 222.981 1 222.981 174.380.000 a Residual 317.119 248 1.279 Total 540.100 249 b. Dependent Variable: Attraction Unstandardized Coefficients Standardized Coefficients t Sig. 1 (Constant).851.155 5.510.000 Internet_Advertising.679.051.643 13.205.000 Available Online: http://saspjournals.com/sjebm 94

Summary 1.643 a.413.410 1.131 a. Dependent Variable: Atraction Results-On behalf of F-test value which is 174.380 significant at.000 level of significance. The result of regression from the coefficient table indicates that Internet Advertising has strong relationship with Customer Attraction having beta value of.643 tested through t-test having t-value of 13.205 which is significant at 00.0% level of significance. The model summary table indicates that Internet Advertising has 64.30% effect on Customer Attraction since the r square value of table is.657 which means Internet Advertising has a greater impact on Customer Attraction. B. Linear Regression between Internet Advertising and Customer Preference The regression was calculated by taking the total of internet advertising and buying behaviour by using SPSS software. In this the internet advertising was independent variable and buying behaviour was the dependent variable. Null Hypothesis (H 0 ). There is no relationship between internet advertising Consumer Preference. Alternatives Null Hypothesis (H 0 ). There is relationship between internet advertising Consumer Preference. Summary 1.454 a.206.203 1.315 a. Predictors: (Constant),Internet_Advertising Sum of Squares df Mean Square F Sig. 1 Regression 111.441 1 111.441 64.474.000 a Residual 428.659 248 1.728 Total 540.100 249 b. Dependent Variable: buying_behaviour Unstandardized Coefficients Standardized Coefficients t Sig. 1 (Constant) 1.260.193 6.526.000 Internet_Advertising.470.059.454 8.030.000 a. Dependent Variable: buying_behaviour Results The model having Internet Advertising as independent variable and Customer buying behaviour as dependent variable has poor fit as indicated by F-test value which is 64.474 insignificant at 0.00a level of significance. The result of regression from the coefficient table indicates that Internet Advertising has direct relationship with buying behaviour having beta value of.454 tested through t-test having t-value of 8.030 which is insignificant at 00.00% level of significance. The model summary table indicates that Internet Advertising has 45.4% effect on buying behaviour. C. Linear Regression between Customer Attraction and Buying Behaviour The regression was calculated by taking the total of customer attraction and customer attraction by using SPSS software. In this the Buying Behaviour was independent variable and Customer Attraction was the dependent variable. Null Hypothesis (H 0 ). There is no significant impact of Customer Attraction on Buying Behaviour. Alternative Null Hypothesis (H 0 ). There is significant impact of Customer Attraction on Buying Behaviour. Available Online: http://saspjournals.com/sjebm 95

Summary 1.569 a.324.321 1.149 a. Predictors: (Constant), Buying_Behaviour Sum of Squares df Mean Square F Sig. 1 Regression 156.543 1 156.543 118.639.000 a Residual 327.233 248 1.319 Total 483.776 249 a. Predictors: (Constant), Buying_Behaviour b. Dependent Variable: Attraction Unstandardized Coefficients Standardized Coefficients 1 (Constant) 1.170.155 7.541.000 Buying_Behaviour.597.055.569 10.892.000 a. Dependent Variable: Attraction t Sig. Results The model having customer attraction as independent variable and buying behaviour as dependent variable has good fit as indicated by F-test value which is 118.639 insignificant at 0.000 level of significance. The result of regression from the coefficient table indicates that customer attraction has direct relationship with Customer buying behaviour having beta value of.569 tested through t-test having t- value of 10.892 which is insignificant at 0.0% level of significance. The model summary table indicates that customer attraction has 56.9% effect on buying behaviour since the r square value of table is.324 which means customer attraction has direct impact on buying behaviour. DISCUSSION On behalf of results Indian consumers are very keen to internet advertisement. The consumers who have positive attitude for internet advertising advertisement show strong belief in the reliability of particular advertisement. With the advancement of age of consumer, the effect of advertisement decreases. They do not purchase the goods only seeing the advertisement. In consumers specifically young consumers are affected more by internet advertisement. They believe in advertisement and when they find the advertised products in online market they certainly purchase the products. On behalf of result we these days the internet advertisement is most popular among youngster it provided timely information and customer satisfaction. Regression analyses proved more than half sample agree that advertising is useful and reliable. Consumer is very much aware of modern market. Study also describes internet advertising most effective media rather than radio, news paper and hoardings television. The effect of internet advertisement on urban consumers in present market is directly related with company and products. Consumer also have several benefits through internet shopping and there so many product for selection best one and replacement facility also available so that internet marketing become popular among Gwalior consumer. REFERENCES 1. Internet Is Powerful Complement To Traditional Advertising Media. 2002; Available online at http://www.iab.net/about_the_iab/recent_press_rele ases/press_release_archive/press_release/4473 2. Jones A; Impact of Internet Technology on Advertising. 2012; Available online at http://www.intechnic.com/blog/impact-of-internettechnology-on-advertising/ 3. Jerry G, Sheng B, Chang L; Online Advertising - Taxonomy and Engineering Perspectives. 2002. 4. Shahram G, Javad SM, Sevda D, Asghar E, Talebian SZ et al.; Assess the Impact of Internet Advertising on the performance of Industrial Marketing Units. Interdisciplinary Journal Of Contemporary Research In Business, 2011; 3(8):479. 5. Chinho Lin, My-Trinh Bui; The Impact Of Internet Advertising On Perceptions, Attitudes And Purchasing Intentions: Elaborating On Gender, Education And Age Differences In Vietnamese Context. 2003. 6. Michelle JB; Advertising and the Internet: A Study of agency client expectations of the internet as a promotional tool. 2006. Available Online: http://saspjournals.com/sjebm 96

7. Tchai T; Online Advertising Development And Their Economic effectiveness Australian Journal of Business and Management Research, 2011;1(6):121-133. 8. Daswani N, Mysen C, Rao V, Weis S, Gharachorloo K, Ghosemajumder S; Online advertising fraud. Crimeware: understanding new attacks and defenses. 2008. 9. Berman R; Beyond the Last Touch: Attribution in Online Advertising. Available at SSRN. 2013. 10. Adekoya OA; The Impact of Advertising on Sales Volume of a Product: A case of Starcomms Plc, Nigeria. 2011. 11. Gaurav B, Kumar GS; Online Advertising And Its Impact On Consumer Buying Behavior. International Journal of Research in Finance & Marketing, 2013;3(1): 21-30. 12. Evans David S; The Online Advertising Industry: Economics, Evolution, and Privacy Forthcoming : Journal of Economic Perspectives. 2009. 13. Priyanka S; A study on impact of online advertising on consumer behaviour (with special reference to e-mail). International Journal of Engineering and Management Sciences. 2012;3(4):461-465. Available Online: http://saspjournals.com/sjebm 97