ABSTRACT
The study examined the effect of online advertisement on consumer buying behaviour; using Konga Online Shop as a case study. This project was carried out in Abia State, Nigeria. The sample was 100 internet users in the study area. A well structure questionnaire was designed for the study. Descriptive statistics and inferential statistics were employed in analyzing the objectives of the study. The socio economic profile of the internet users shows that 58% were males and the other 42% were females. The age distribution of the respondents shows that the minimum age was 16 while the maximum age was 68, with an average age of 38 years. The result implies that preponderance of the respondents were in their active age group and are knowledgeable about the use online shopping. Majority of the internet users (46%) were single, while 34% were married. About 11% and 9% were divorced and widowed. This connotes that mainstream of the respondents were single. The Pearson Correlation Coefficient of the effect of online advertisement on consumer buying behaviour gave a weak correlation coefficient of 0.468. By implication, it can be deduced that a 1% shift/increase in online advertisement will result in 46.8% shift/increase in consumer purchase intention. The inference of this result is that online advertisement and customer patronage were found to be positively linked thus reducing one entails the reduction of the other. The most significant websites feature of Konga online is Trustworthiness of Konga Online Shop, followed by the simplicity to locate information on Konga website. Fear of fraudulent activities was the major challenge the respondents experience while patronizing Konga online store. Some people do not still believe that online shopping is real. Many thinks is a fraud. It is highly recommended that fraudulent activities should be avoided in online shopping. E-businesses should be registered with the cooperate affairs commission.Also, e-businesses, including Konga Online shop should endeavour to apply on-time delivery as to encourage regularity of visits and consumer patronage of their online shop.
TABLE OF CONTENTS
Title page i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
Table of contents vi
List of figures x
List of Tables xi
Abstract xii
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study 1
1.2 Problem Statement 3
1.3 Objectives of the Study 4
1.4 Research Questions 5
1.5 Justification of the Study 6
1.6 Scope of the Study 7
1.7 Definition of Terminologies 8
CHAPTER TWO: LITERATURE
REVIEW
2.1 Conceptual Framework 10
2.1.1 The Concept of Advertisement 11
2.1.2 The Concept of Internet Marketing 12
2.1.3 The Konga Online Shop 13
2.1.4 Challenges of Online Shopping 15
2.1.5 Benefits of Online Shopping 18
2.1.6 The Concept of Consumer Buying
Behaviour/Purchase Intention 19
2.1.7 The Web Experience: Concept and Significance 19
2.1.8 Factors that Determine the Choice of
Advertising Media 20
2.1.9 The Concept of Consumer Characteristics 22
2.1.10 The Concept of Advertisement Characteristics 22
2.1.11 The Concept of Website Characteristics 23
2.1.12 Consumers Attitude 25
2.1.13 The Concept of Product Characteristics 26
2.2 Theoretical Framework 26
2.3 Empirical Literature Review 28
CHAPTER THREE
3.1 Research Design 30
3.2 Study Area 30
3.3 Population of the Study 31
3.4 Sampling Procedure and Sample Size 31
3.5 Method of Data Collection 32
3.6 Instruments for Data Collection 33
3.7 Validity/Reliability of Research
Instrument 33
3.8 Method of Data Analysis/Analytical
Techniques 33
CHAPTER FOUR
4.1 Socio – Economic Characteristics of
Respondents 36
4.2 Disposition of Consumers towards Online
Advertisement in Ikwuano, LGA,
Abia State, Nigeria 37
4.3 Influence of Online Advertisement
Characteristics on Consumer Buying
Behaviour in the Study Area 40
4.4 Effect of Online Advertisement on
Consumer Buying Behaviour 43
4.5 Effect of Konga Online Shop (www.konga.com)
Website Features on
Consumer Buying Behaviour 44
4.6 Challenges Consumers Encountered while
Patronizing Products and
Services seen Advertised in Konga Online Shop (@ WWW.Konga.Com) 46
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary 49
5.2 Conclusion 50
5.3 Recommendations 51
REFERENCES
LIST OF FIGURES
Figure 2.1(a):Konga
Online Shop (Front view). 14
Figure 2.1(b):
Konga Online Shop (Side view). 15
LIST OF TABLES
Table
4.1: Distribution
of Respondents by Gender, Age, Marital Status,
Educational Level and
Household Size 36
Table
4.2: What is your Disposition
towards Online Advertising? 37
Table
4.3: What is your Attitude towards
Online Advertising? 38
Table
4.4: Awareness Level of Respondents
on Adverts by Companies/Brands on Konga Online Shop (@
WWW.Konga.Com)
Table
4.5: Knowledge
about Konga Online Shop (@ WWW.Konga.Com) 40
Table
4.6.: Respondents Views on the Level of Patronage of Online Business 41
Table
4.7: In what ways does Online
Advertisement have influence on you? 42
Table 4.8: Pearson Correlation Coefficient showing the Effect of Online Advertisement on Consumer Buying Behaviour 43
Table
4.9: Effect of Konga Online Shop
(@WWW.Konga.Com) Website Features on Consumer Buying Behaviour 45
Table
4.10: Challenges Consumers Experience
while Patronizing Products and
Services in Konga Online Shop 46
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Advertisement
plays an important role in modern era as it shapes the attitudes and
perceptions of individuals and society which strikingly influences their buying
behaviour (Edwards, 2005). Advertisement is considered the prime factor for the
success of any business. Advertisement can be done through different media.
Some majorly used media are print medium (newspapers, magazines, and
brochures), outdoor medium (billboards, events), broadcast medium (television,
radio, cable TV) and online medium (websites, social network sites, etc).
Online
advertisement is a type of digital advertisement that has become an effective means
of marketing communication through the help of widespread internet access. It
is the state-of-the-art and fastest growing way to advertise. The internet now
provides everything from links on sites, to banner ads on sites, to small ads
on sites, to pay per click advertising. Internet advertisements are unique in the
way that, consumers visit the advertisements, when compared to traditional print
and TV media, where advertisements are placed in front of the viewers. Online advertisements
include banner ads, interstitial ads, text ads, pop-up ads and Hyper Test Make-up
Language (HTML) ads; and are found to be a dominant media where companies uses
to market their products and services via the internet.
Online
advertising is about delivering advertisements to internet/online users via web
sites, e-mail, ad-supported software and internet-enabled smart phones. It is a
type of showcasing and promotion which utilizes the internet to convey special
advertising messages to shoppers. This can be useful in creating awareness of
an organization and its product and services. Edwards (2005) stated that online
advertisements are portions of a website that are formatted for the purpose of
delivering a marketing message that seek to attract customers to purchase a
product or service. Hence, the internet as a communication medium has broadened
the scope of marketing communications considering the number of people who can be
easily reached. This has also increased the richness of marketing
communications by combining text, video, and audio content into rich messages
posted on the web. Thus, the web is arguably richer as an advertising medium
than some traditional channels such as the television or radio; because of the
complexity of messages available, the enormous content accessible on a wide
range of subjects and the ability of users to interactively control the
experience (Laudon and Traver 2013).
Consequently,
the improvements in global telecommunications and World Wide Web (WWW) have
given impetuous and new mechanisms for businesses and marketers to promote and
advertise their products and services. Introduction to modern electronic
advertising, popularly called online advertising, has seen tremendous growth
over the past decade and it continues to be the preferred form of advertising
for many companies. Even though traditional advertising continue to play its
role as an important advertising technique, to-date, more and more organizations
are turning to online advertising to promote their goods and services. As
explained by Yaveroglu and Donthu (2008), most marketers are now taking
advantage of the internet revolution to make their products accessible to the
world.
To
this end, online advertisement is one of the elements in shaping consumer buying
process. Wang and Sun (2010) indicate that online advertising impact on consumers’
purchasing intention variously from one country to another due to differing
beliefs, attitudes and behavioural responses. Wang and Sun (2010) also found
that a country’s cultures, history, political system, technological and
economic and market development have impacted on their purchasing behaviour via
online advertising.
Therefore,
it would be valuable to know whether the influence of online advertisement lead
to purchases of the advertised products or services. This study will therefore seek
to analyze the effects of online advertisements on consumer buying behaviour,
using Konga Online Shop (www.konga.com)
as a case study.
1.2 Problem Statement
The
revolutionary change brought forth by information technology has an important
impact on the daily lives of the populace. It has transformed the way we do
business by allowing retailers to offer unlimited range of products and
services to all consumers from around the world at any point in time. The internet
has emerged as an advertising medium (Silk et
al., 2001). Many companies have turned to the internet to advertise their products
and services; and the internet is deemed to be the most significant direct
marketing channel for the global marketplace (Faber et al., 2004). Companies are pouring billions of dollars into internet
advertising to obtain greater returns on investment on ads (Edwards, 2005;
Joines et al., 2003).
Internet
penetration in Nigeria is very low compared to Europe, South East Asia and the United
States. However, many of the internet users are not taking advantage of the opportunities
afforded by the internet, to purchase what they need. Even though online users
have increased; yet, the influence of online advertisements towards forming
positive purchase intentions needs to be studied to assist advertisers in using
online advertisements effectively in their marketing campaigns.
While
a lot of research has been done on advertising, the effectiveness of online
advertisement in Abia State and Nigeria is a segment that has been missing from
these studies. Also, understanding the factors that influence online advertisement
effectiveness is crucial. While much research has addressed this issue, few
studies have considered the case of developing countries, as in Nigeria and
Abia State in particular. This project therefore seeks to explore the factors
that contribute to the effectiveness of online advertisements and how it affects
consumer purchasing intention from the perspective of developing countries.
Again,
in spite of the popularity of advertising on the internet, a lot of studies has
not being conducted which addresses the key issues regarding the effectiveness
of online advertising, especially the impact it has on the purchase behaviour
of users. Studies conducted on the attitude of online users towards online
advertising are mainly found in the US, Asia and Europe (Bakshi and Gupta,
2013). However, since attitudes and behaviours differ across cultures, it is
worthwhile to study consumer attitude from the perspective of developing country
like Nigeria. In spite of the remarkable opportunities offered by online
advertising, the attitude and behaviour of Nigerian online users towards online
advertising remains unclear. To this end, this study attempts to investigate
the effectiveness of online advertising using a Effects of Online Advertisement
on Consumer Buying Behaviour: Case Study of Konga Online Shop (www.konga.com).
Thus,
understanding the mechanisms of online shopping and the consumer behavior in
Abia State, Nigeria is the priority of the research.
1.3 Objectives of the Study
The
broad objective of this project is to evaluate the effects of online
advertisement on consumer buying behaviour, using the Konga Online Shop (www.konga.com)
as a case study. The specific objectives will be to:
i.
examine the socio
economic characteristics of the respondents in the study area;
ii.
ascertain the disposition
of consumers towards online advertisement in Abia State;
iii.
examine the influence of
online advertisement characteristics on consumer buying behaviour in Abia
State;
iv.
analyze the effect of
online advertisement on consumer buying behaviour;
v.
determine the effect of
Konga Online Shop (www.konga.com) website features on consumer buying behaviour
in the study area;
vi.
ascertain the challenges
consumers encountered while patronizing products and services seen advertised
on Konga Online Shop.
1.4 Research Questions
Although,
many studies have researched different aspects of consumer behavior on online
advertisement, very few studies have studied the consumer responsiveness to
online advertisement in Abia State, Nigeria. Moreover, less research has looked
into the impact of online advertising effect on consumers’ purchasing intent. This
project will therefore seek to answer the following research questions:
i.
What socio economic
characteristics influence consumers online buying behaviour?
ii.
What are the dispositions
of consumers towards online advertisement in Abia State?
iii.
What are the significant
influences of online advertisement characteristics on consumer buying behaviour
in Abia State?
iv.
What are the major
effects of online advertisement on consumer buying behaviour?
v.
What are the effects of
Konga Online Shop (www.konga.com) website features on consumer buying behaviour
in Abia State?
vi.
What are the challenges
consumers encountered while patronizing products and services seen advertised
on Konga Online Shop?
1.5 Justification of the Study
This
study is justified based on the significance of online advertisement on
consumer buying behaviour. Online advertising has gained increased popularity
with more people spending time online. It is therefore relevant to understand
consumers’ attitudes toward online advertising. Marketers and advertisers will
find this study relevant. By understanding consumers’ attitude, the advertisers
can make the necessary efforts to increase consumers’ exposure to online
advertising.
The
results of this study will assist advertisers in planning and designing their
online advertisements by considering the relevant predictors. Effective
planning of online advertising will help reduce consumers who find online
advertisements repulsive. This would provide a friendlier online platform. Besides
marketers, this study is also useful to government and non-government agencies
in planning and designing their online advertising as these agencies also use
online advertising in their cause related marketing.
With
an increasing number of consumer groups using the internet, an understanding of
consumer attitudes and behaviour towards its advertising becomes useful for
businesses. Furthermore, greater attention needs to be paid to the function of
online advertising in influencing the purchasing process.
The
rapid online-technology development and diffusion makes the internet a serious
businesses asset for achieving competitive advantages (Kiang et al., 2000). In fact, the internet
became key business infrastructures that help marketers understand and satisfy
diverse consumer needs (Constantinides and Fountain, 2008). As a result the
Internet is currently considered a cost efficient, effective and very
productive marketing platform (Kiang et
al., 2000).
The
findings of this research will significantly create awareness of the impact of
online marketing on the buying behaviour of individuals especially those who
wish to purchase electronic devices via online shopping stores. The study will
serve as a piece of motivation to organizations wishing to market their
products via websites. It will also be beneficial to web designers who are
instrumental in the designing and launching of online stores. Finally, this
study will be of importance to academia as additional literature in the
understanding of online marketing and its effect on people’s buying behaviour.
This
study will enlighten intending advertisers on how to package their online advertising
campaign since it will reveal the extent of awareness of the use of online media
in advertising. This project will equally serve as a platform for further
enquiries in related subject matters and as a resource material for researchers
who intend to carry out studies in this and other related areas.
1.6 Scope of the Study
The
focus of this project is to examine the effectiveness of internet advertising
in terms of its utilization to make online purchase decision. In this study, internet
advertising is synonymous with online advertising and web advertising. In
accordance with various researchers, internet advertising can be delivered via
any channels, in any form, and provides information at any degree (Schlosser et al., 1999). It broadly consists of
various commercial content formats delivered by video clip, print, and audio; either
solicited or unsolicited. It includes company web sites, corporate logos,
e-mail messages, pop-ups, banner ads, skyscraper ads, buttons, interstitials,
hyperlinks, dynamic media, and interactive games (Korganokar, 2003). This project
will seek to examine the effects of online advertisement on consumer buying behaviour,
using the Konga Online Shop as a case study.
1.7 Definition of Terminologies
For
a proper understanding of this project, the key terminologies used are defined
based on their conceptual consequence to the study:
Konga Online Shop
Konga
online shop enables consumers to access an unlimited range of products and
services from companies around the world. Konga.com is a Nigerian electronic
commerce company founded in 2012 with headquarters in Yaba, Lagos. It offers a
third-party online marketplace, as well as first-party direct retail; spanning
various categories including consumer electronics, fashion, home appliances,
books, children's items, and personal care products.
Social Media
This
refers to online social interaction sites in which messages are developed by the
users and also shared by those users between or among themselves. For example
Facebook.
User-Generated Content
These
are information contents that are primarily written, published or shared via social
networks by their users.
Social Media Advertising
This
refers to a special area of advertising that uses Internet’s social platforms (social
networking sites) to deliver commercial messages to potential consumer.
Social Platforms
This
includes social websites or networking sites.
Blogs
Blog
is short for web blog. They are online personal journals in which people write
about their interest for instance, business, politics, sports, music, movies reflections,
comments etc. Readers can post and engage in conversation with the blog author
and often, links to other blogs provided by the writer.
Micro Blogs
Micro
blogs allow users to exchange small elements of content such as short sentences
not more than 140 characters, individual images, or video links. Twitter is an
example of a micro blog.
Web 2.0
This
refers to websites or web services that utilize “social” interaction. It is characterized
by openness, collaboration and user participation and generation of content.
Social Authority
This
is developed when individuals or organizations establish themselves as experts
in their given field or area, thereby becoming an influence in that field or area.
Brand
A
trademark or a name of a product.
Hyperlink
A
hyperlink, also sometimes referred to as a "hypertext link," is
simply a highlighted word, phrase or, sometimes graphic, that allows users to
link to another website by simply clicking on the hyperlink.
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594
Login To Comment