ABSTRACT
The use
of online advertisement in Nigerian market is increasing and businesses are
more and more considering the internet as a source of marketing communication.
However, few studies have considered the factors that influence online buyer's
decision when Nigeria is considered. Thus, the main objective of this study was
to examine the factors that contribute to the effectiveness of online
advertisements and how they affect consumers' buying decision. JUMIA online
shopping company was selected as the study organization. The targeted
population was the entire students of University of Lagos, Akoka campus who
must have at any time visited JUMIA online shopping platforms to make purchase.
The method of carrying out the study was based on survey design. A total number
of 180 undergraduate students were randomly selected from stratified groups
within the University as sample size for the study. The survey questionnaire
was used to collect primary data from respondents. The data collected was
analyzed based on simple percentages and frequencies. The Chi-square technique
was used to test the proposed test the proposed hypotheses. The core findings
revealed that income of the user (c2 cal = 70.07) internet skills (c2cal = 87.65), cost of using the internet (c2 cal = 134.89), content of the advert (c2 cal = 70.074), location of advert (c2 cal 98.69), and the quality of advertised products (c2 cal = 124.89) are significant factors that affect the effectiveness of online
advertisement and therefore influences buyers' decision. It was recommended
that Web advertisers should try to provide adequate and relevant information
content so that consumers consider web ads when making purchase decisions. In
addition, government should make internet cost affordable to enhance customer
accessibility, and issues of internet fraud should be handle appropriately.
TABLE OF
CONTENTS
TITLE PAGES
Certification ii
Dedication iii
Acknowledgments iv
Abstract v
Table of contents vi
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of the Problem 2
1.3 Aim and Objectives of the Study 3
1.4 Relevant Research Questions 4
1.5 Research Hypotheses 5
1.6 Significance of the Study 4
1.7 Scope of the Study 6
1.8 Definition of Terms 6
CHAPTER TWO: LITERATURE REVIEW
2.1 Preamble 8
2.2 The Concept of Advertising 8
2.3 Review of Empirical Findings 31
2.4 Theoretical Framework 37
References 39
CHAPTER THREE: METHODOLOGY
3.1
Introduction 44
3.2 Research
Design 44
3.3 Population of the Study 45
3.4 Sample
Size and Sampling Procedure 45
3.5
Data Collection Instrument 47
3.6 Method
of Data collection 47
3.7 Method of Data Analysis 48
References 49
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Preamble 50
4.1.1 Demographic Background Characteristics of
Respondents 50
4.2. Presentation and Analysis of Data
According to Research Questions 54
4.3: Testing
of Hypotheses 62
CHAPTER FIVE:
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary 68
5.2 Conclusion 68
5.3 Recommendations 71
Bibliography 73
Appendix
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Advertising has been in existence for many decades. It is one means of
promotional mix which has its ultimate function to inform, persuade and promote
ideas in order to sell goods and services (Akinkugbe 2006; Kotler, 2009).
Advertising, over the years, has grown to become a prominent form of marketing
communication, and as a marketing communication tool, it utilizes various forms
of mass media to get sales messages across to a large number of people. The
traditional mass media for advertising include TV, broadcasting, magazines and
newspapers (Belch & Belch, 1998). However, with the increasing development
in information technology, the Internet in addition has become another
interesting advertising media commonly used nowadays by advertisers and markets
to communicate messages to consumers (Ashraf and Mohammed, 2012).
Internet advertising, (also known as online advertising) is the delivery
of advertising messages and marketing communications through websites. It can
be delivered through various electronic platforms including mobile phones,
iPods, desktop computers, and laptops etc. As a marketing communication tools
(Esiri, Kolade, Oloyede, and
Ogungbamigbe, 2014) internet advertising takes a multitude of forms, ranging
from Search advertising to Banner and Rich Media Adverts (i.e. ads that incorporate
sound, animation and interactive digital video commercials).
Regardless of the particular format, displaying advertising content to
online users is driven by two major objectives: (a) build new or reinforce
existing brands, and (b) stimulate purchases. For that reason, the success (or
effectiveness) of internet advertising has been traditionally measured by the
number of clicks attracted by the adverts, or the ratio of the number of clicks
over the number of impressions. In addition, many advertising experts argue
that the mere exposure of online users to the advertising message can be
beneficial in terms of building brand awareness (Flores, 2000) and increasing
purchase intentions (Hollis, 2005). However, various factors may influence the
rate of clicks attracted by online adverts, and it is the burden of this study
to examine these factors in Nigerian context and to also find out how they
influence purchase attitude and decision of consumers.
1.2 Statement of the Problem
Internet advertising is the delivery of advertising messages and
marketing communications through the Websites. It has presented sustainable
revenue growth since its inception in the mid-1990s. Internet advertising takes
a multitude of forms, ranging from the "traditional" banners to
today's rich media ads. Due to its wide success, internet advertising currently
constitutes a significant marketing channel for a large number of firms,
ranging from news agencies to car manufacturers and retailers, and it is thus
gradually gaining attention in the context of communications strategy, planning
and implementation.
However, due probably to its infancy in Nigerian media market, there has
been relatively little knowledge and empirical research on the factors that
affect the success of online advertising in Nigeria. Consequently, when relying
on insufficient knowledge to make decisions about their internet marketing
strategy, companies run the risk of missing marketing opportunities, lost
patronages, decline profits, and damaging image. To this end, this study
attempt to make a number of contributions to the body of actionable knowledge
pertaining to the factors that may influence success of online advertising
campaigns using KJMIA online marketing company as a case study.
1.3 Aim and Objectives of the
Study
Generally, the main aim of this study is assess the effect of internet
advertising on consumers purchase decision. However it is set to:
i.
Examine the influence of background
characteristics of online users on internet advertising success.
ii.
Assess the effect of online products
advertisement on internet users.
iii.
Assess the effect of online adverts on
consumers’ decision purchase for products.
iv.
Examine the impact of internet source or
medium on consumers decision purchase for advertised products.
v.
Assess the influence of demographic,
advertisement, website and product characteristics on consumer buying decision.
1.4 Relevant Research Questions
The following questions are relevant to the study
i.
Do background characteristics of online users
have significant influence in internet advertising success?
ii.
What influence does online products
advertisement have on internet users?
iii.
To what extent have online adverts affected
consumers’ decision purchase for products?
iv.
Does the source of online advertised product
influence consumer’s decision purchases?
v.
Do demographic, advertisement, website and
product characteristics have any significant effect on consumer buying
decision?
1.5 Research Hypotheses
The following null hypotheses were stated for the study
H01: There will be significant influence of sex, age , marital status,
education and occupation of internet users on internet advertising
success
H02: There will be significant influence of online products
advertisement on internet users.
H03: There will be no significant effect of online adverts on
consumers’ decision purchase for products.
H04: There will be no significant influence of internet source on
consumer’s decision purchases.
H05: There will be significant effect of demographic, advertisement; website
and product characteristics on consumer buying decision.
1.6 Significance of the Study
Essentially this study will benefit business
organizations and corporate bodies in the e- retail shopping industry as it
will elaborate on the factors that may enhance/impede success of online advert.
Findings will also enable online shop owners to be aware of those features and
product elements that consumers considers very important in their purchasing
intention and shopping experience. By extension, this would enable the
manufacturers to improve on their products.
It is hoped that
through the completion of this investigation, a body of knowledge is added to
the marketing communication and promotion area of advertising.
1.7 Scope of the Study
This research is to examine the effects of internet advertising on the
consumer buying decision. Investigation was limited to the vicinity of
University of Lagos, using all categories of students who are mostly the users
of internet facilities either for information, education, social interaction or
shopping purposes. The focus of study was however restricted to various online
platforms used by JUMIA online shopping mall. It concentrate on finding out if
online advertising affords the students the opportunity of getting to know and
continuously patronize products advertised by JUMIA electronic shopping
websites.
1.8 Definition of Terms
The following terms were described according to their usage in the study
Advertising: This is a
form of communication used to help sell products and services. It is sometimes
use to persuade consumers to switch from some popular brand to less known
brands.
Advertisement: Communication
in the media paid for by identifiable sponsor(s) and directed at a target
audience with the aim of impacting information about a product, services, idea
or opinion.
Advertiser: A person
or organization who pays for the placement of an advert.
Internet Advertising: Internet advertising is the delivery of advertising
messages and marketing communications through the company Websites.
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