Online Effectiveness of online advertising on customer buying behaviour

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2.9: Conceptual framework 23

CHAPTER THREE: RESEARCH METHODOLOGY 24

3.0 Introduction 24

3.1 Research Design 24

3.2 Research philosophy 24

3.3 Multiple case studies 25

3.4 Single case studies 25

3.5 Target population 26

3.6.Data collection methods 26

3.6.1 Data collection Technique 26

3.7 Basic Information 28

3.8 Online advertising 29

3.9 Data analysis 31

3.10 Credibility of the Study 31

3.11 Sampling technique 31

3.12 Sampling Procedure 32

3.13 Reliability and validity of data collection instruments 33

3.14 Sample Size and recruitment of the participants 34

3.15 Ethical issues 34

CHAPTER FOUR: FINDINGS AND ANALYSIS 35

4.0 Introduction 35

4.1 Gender 35

4.2 Age 37

4.3 Income level 39

4.4 Effectiveness of online advertisement 41

4.5 Internet usage 43

4.6 Effects of online advertisement on consumer purchasing behaviour 44

4.7 The perception of consumers on online advertising 46

4.8 Types of online advertising 48

4.9: Recommendations on online advertisement 50

CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS 52

5.0 Introduction 52

5.1 Summary of findings 52

5.2 Age 52

5.3 Income level 53

5.3 Answers to the research questions 54

5.3.1: Review of the effectiveness of online advertisement (objective one) 54

5.3.2: Effectiveness of online advertisement on consumers buying behaviour (objectives two) 56

5.3.3 Perception of consumers on online advertising (objective three) 57

5.3.4: Recommendations on online advertisement (objective four) 58

5.4 Conclusion 60

5.5 Limitations 60

5.6 Recommendations 60

Bibliography 61

Appendix 74

Questionnaire 74

CHAPTER ONE: INTRODUTION OF THE STUDY

1.0 Introduction

Online advertisement has had many developments of late. It is a fact that online advertisement can be termed as the future of advertisement. Consumer behaviour is mostly affected by product promotion. The era globalization has caused a shift in so many areas, including advertisement where advertisers are moving out of the conventional methods of advertisement into online advertisement. The competition in business world has continued to grow and thereby necessitating firms to be very creative in the way they carry out their activities, including advertisement. One of the developments that have been witnessed in the business world is online advertisements. Many firms are resulting into advertising their goods and services online as it is what is perceived as fashionable. This paper will provide an analysis of the effectiveness of online advertisement on consumer behaviour in mobile phone industry.

1.1 Background of Study

It is a fact that the modern consumer is an internet user, young, professional, affluent and has high income levels as well as education. This means that the current consumer is much suited by online advertising as opposed to the traditional methods of advertising (Palumbo and Herbig, 2008). The current consumer value their time more than they value the time. The consumers of today make the largest portion of the working population. Most of them have dual-income and are also single parents. This therefore means that for most of the consumers, time is a constraint. The work most of the time and have access to internet, meaning that online advertisement would be very effective for the companies in targeting the today’s consumers (Burke, 2007). Many works confirms the view that consumer’s large income and access to internet are some of the major factors that make firms to move from traditional methods of advertising into online advertising (Sisk, 2000; Hoffman and Novak, 1996; Liao and Cheung, 2011). Most researchers hold that demographic and personality variables are usually among the important factors that influence online advertisement (Kwak et al., 2012).

Bellman et al. (2009) states that demographics among consumers are not very important in determining whether a consumer will prefer online advertising over the conventional methods of advertising. But he also notes that online advertisement and marketing are becoming more favoured by the consumers as they are more fashionable that the conventional methods of advertising. Bellman et al (2009) also stated that among the characteristics of the consumers that make them prefer online advertisement to the traditional methods of advertising is the lifestyle of the consumer as well as their personalities. In online advertisement, propensity among the consumers is a powerful factor that determines how they perceive online marketing (Kwak et al., 2012; Miyazaki and Fernandez, 2011).

1.2 Objectives of the study

This paper will be guided by the following objectives

- To give critical review of the effectiveness of online