EFFECT OF INTERNET ADVERTISING ON CONSUMERS’ PURCHASE DECISION
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EFFECT OF INTERNET ADVERTISING ON CONSUMERS’ PURCHASE DECISION
Chapter one
INTRODUCTION
1.1 Background for the Study
Advertising has existed for several decades. It is one type of promotional mix whose ultimate goal is to enlighten, convince, and promote ideas in order to sell goods and services (Akinkugbe 2006; Kotler, 2009).
Advertising has evolved over time to become a dominant form of commercial communication, and as such, it employs a variety of mass media to convey sales messages to a huge number of people.
Traditional advertising mediums include television, radio, magazines, and newspapers (Belch & Belch, 1998). However, as information technology has advanced,
the Internet has emerged as another intriguing advertising medium that advertisers and markets utilise to transmit messages to consumers (Ashraf and Mohammed, 2012).
Internet advertising (also known as online advertising) refers to the distribution of advertising messages and marketing communications via websites. It can be supplied via a variety of electronic platforms, such as mobile phones, iPods, desktop computers, and laptops.
As a marketing communication tool (Esiri, Kolade, Oloyede, and Ogungbamigbe, 2014), internet advertising comes in a variety of formats, including search advertising, banner ads, and rich media ads.
Regardless of the medium, providing advertising information to internet visitors has two primary goals: (a) to create new or strengthen current brands, and (b) to encourage sales.
As a result, the performance (or efficacy) of internet advertising has typically been assessed by the number of clicks generated by the advertisements, or the ratio of the number of clicks to the number of impressions.
Furthermore, many advertising experts believe that simply exposing online users to advertising messages can help improve brand awareness (Flores, 2000) and increase buy intentions (Hollis, 2005).
However, different factors may influence the rate of clicks attracted by online advertisements, and it is the responsibility of this study to investigate these elements in the Nigerian context, as well as to determine how they influence customer buying attitude and decision-making.
1.2 Statement of the Problem
Internet advertising is the delivery of advertising messages and marketing communications via websites. It has demonstrated consistent revenue growth since its inception in the mid-1990s. Internet advertising comes in a variety of ways, from “traditional” banners to today’s rich media adverts.
Because of its widespread success, internet advertising is now a significant marketing channel for a wide range of businesses, from news agencies to car manufacturers and retailers, and it is gradually gaining attention in terms of communications strategy, planning, and implementation.
However, due to its youth in the Nigerian media business, there is a lack of knowledge and empirical study on the elements that influence the success of internet advertising in Nigeria. As a result, when firms make judgements about their internet marketing strategy based on insufficient knowledge,
they risk missing out on marketing opportunities, losing customers, declining earnings, and hurting their reputation. To that purpose, this study attempts to add to the body of practical knowledge about the aspects that may influence the performance of online advertising campaigns by using the KJMIA internet marketing company as a case study.
1.3 Goals and Objectives of the Study
The primary goal of this study is to analyse the impact of online advertising on consumer purchasing decisions. However, it has been set to:
i. Investigate the impact of background characteristics of online users on internet advertising success.
ii. Determine the impact of online product advertisements on internet users.
iii. Evaluate the impact of online advertisements on customer purchasing decisions for products.
iii. Investigate the influence of an online source or media on customers’ purchasing decisions for advertised products.
v. Determine the impact of demographics, advertisements, websites, and product attributes on consumer purchasing decisions.
1.4 Relevant Research Questions.
The following questions are important to the study:
i. Do the background characteristics of online consumers have a major impact on internet advertising success?
ii. What effect do online product advertisements have on internet users?
iii. To what extent have online advertisements influenced customers’ purchase decisions for products?
iv. Does the source of internet promoted products influence customer purchasing decisions?
v. Do demographic, advertising, website, and product variables have a substantial impact on customer purchasing decisions?
1.5 Research Hypotheses.
The study’s null hypotheses were as follows.
H01: The gender, age, marital status, education, and occupation of online users will have a considerable influence on the success of internet advertisements.
H02: Online product advertisements will have a huge influence on internet users.
H03: Online advertisements will have no substantial effect on customers’ purchasing decisions for products.
H04: Internet sources will have no meaningful influence on consumer purchasing decisions.
H05: Demographics, advertisements, websites, and product attributes will have a considerable impact on customer purchasing decisions.
1.6 Significance of the Study
Essentially, this study will aid commercial organisations and corporate bodies in the e-commerce shopping industry by elaborating on the aspects that can boost or impede the success of an online advertisement.
The findings will also help online store owners understand which features and product components shoppers value most in their purchasing intentions and shopping experiences. By extension, this would allow manufacturers to improve their products.
It is envisaged that the conclusion of this inquiry will add to the body of knowledge in the marketing communication and promotion field of advertising.
1.7 Scope of Study
The purpose of this study is to look at how online advertising influences customer purchasing decisions. The investigation was limited to the vicinity of the University of Lagos, with all categories of students who primarily use internet facilities for information, education, social engagement, or shopping.
The study’s focus was, however, limited to the various internet platforms employed by JUMIA, an online shopping mall. It focuses on determining if online advertising provides students with the ability to learn about and regularly purchase products advertised by JUMIA electronic commerce websites.
1.8 Definition of Terms.
The following terms were described based on their use in the study.
Advertising is a type of communication used to promote products and services. It is occasionally used to encourage customers to switch from a popular brand to a lesser-known one.
Advertisement: Media communication paid for by identifiable sponsor(s) and targeted to a specific audience with the goal of influencing information about a product, service, idea, or opinion.
An advertiser is a person or organisation that pays for the display of advertisements.
Internet advertising is the delivery of advertising messages and marketing communications via company websites.
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