IMPACT OF ONLINE SHOPPING ADVERTS ON CONSUMER BUYING RATE
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IMPACT OF ONLINE SHOPPING ADVERTS ON CONSUMER BUYING RATE
Chapter one
INTRODUCTION
1.1 Background of the Study
Given the increasing number of Nigerians who go online on a daily basis, as well as the fact that many firms continue to use social media to sell their products, it is even more crucial to understand how online product advertisements influence consumer purchasing behaviour. Online advertising is often referred to as online marketing, internet advertising, or web advertising.
This type of marketing and advertising leverages the internet to send promotional messages to customers. Because of its unique properties of flexibility, interactivity, and personalisation, the internet is an ever-expanding source that is developing tremendously in terms of both application and user base.
Internet as a strong advertising medium is versatile, which is why it stands out from old advertising modes. E-advertising is a highly adaptable method that allows customers to make modifications during the course of a campaign as needed without incurring significant additional costs.
This makes the internet increasingly crucial, especially in a country like India, where the business environment is highly dynamic. E-advertising includes email advertising, search engine advertising, social media advertising, display advertising, mobile advertising,
and so on. As with other advertising media, online advertising frequently involves both the publisher, who integrates advertisements into online content, and an advertiser, who provides advertisements to be displayed on the publisher’s content in order to influence.
Advertising, as a promotional tactic, is a powerful instrument for raising product awareness in the minds of potential customers before they make a purchase decision. Marketing professionals can use mass communication tactics such as advertising, sales promotion, and public relations.
Advertising through all mediums influences audiences, but the internet is currently one of the most powerful mediums of advertising due to its widespread reach; it can influence not only an individual’s attitude, but also his behaviour, lifestyle, exposure, and, in the long run, the culture of the country (Latif and Abideen 2011).
Consumers are the last users of the products; they keep the production cycle going. Consumers play an important part in any nation’s economic system; therefore, any nation will suffer crises if there is insufficient demand for commodities produced.
According to Cohen (1988), advertising is a business activity that uses creative techniques to create persuasive communication in mass media that promotes ideas, goods, and services in a way that aligns with the advertiser’s goal, consumer satisfaction, and the development of social and economic welfare. (Cohen, 1988).
According to Cohen’s definition, advertising has three purposes: increasing company sales, providing consumers with a wide range of services, and ensuring the social and economic well-being of society.
1.2 Statement of the Problem
Globalisation has long demanded a paradigm shift in all fields, including marketing. To compete in the global market, a company must be more creative and have a competitive advantage over other companies.
The study of consumer behaviour has become a concern for marketers because it allows them to learn how customers choose goods and services that must suit numerous demands, as well as the elements that influence their decision.
Companies are increasingly attracted to online advertising for this reason, as it has developed quickly over the last decade. Every day, an increasing number of people connect and spend time online. Additional gadgets (such as mobile phones and televisions) can provide more internet connectivity.
.According to Kotler (2007), a new competition is not between what various companies produce in a factory, but between what is added to the plant results in the form of packaging, services, advertising, customer consulting, financing, shipping arrangements, warehousing, and other things that people believe are valuable.
Competition between items in the market motivates businesses to aggressively promote their products in order to capture consumers’ attention. As a result, organisations must be able to provide the consumer a positive impression of the product to be sold while also dealing with how the product is sold in the market.
To address the wants and wishes of consumers, the existence of such products must be communicated to them before they can be launched. Chukwu and Uzoma (2014), on the other hand, provided scientific evidence to prove that Nigerian consumers spend a substantial amount of money with internet shops.
One wonders what caused the observed modifications. Furthermore, Husain and Adamu (2014) claimed that the usage of social media, particularly Facebook and Twitter, has been essential,
although it is unclear whether this has resulted in actual online transactions. Ayo et al. (2011), surprise, indicated that, despite the rapid growth of online marketing, customers continue to examine business websites solely as a source of information, but still make traditional purchases.
Possible causes of such behaviour include trust and danger (security concerns).The Nigerian experiences in all of these have been partially examined; consequently, the purpose of this study is to determine the impact of online shopping advertisements on customer purchase rates.
1.3 Objectives of the study
The overarching goal of this study is to determine the impact of online shopping advertisements on consumer purchasing behaviour. Specifically, the study aims to
Certain internet advertisements show to be more effective than traditional media.
What additional elements influence the way individuals see internet advertisements?
Investigate if online shopping advertisements increase product sales volume. Determine if internet advertisements influence customer purchasing decisions.
1.4 Research Hypothesis
HO1: Internet advertising has not proven to be more effective than traditional media.
HO2: Online shopping advertisements have no substantial impact on the consumer buying rate.
1.5 Significance of the Study
The study’s findings will help marketers and site designers understand the criteria used when selecting internet adverts. The study’s findings will reveal the impact of online advertising on moulding people’s perceptions of items, which will benefit businesses looking to use and invest in online or internet advertising.
The study’s findings will give empirical evidence to support or refute theories concerning online advertising in Nigeria.Finally, the study’s findings will add to the body of current literature and serve as a resource for students and researchers interested in conducting additional research in a related topic.
1.7 Scope of the Study
The purpose of this study is to determine the impact of online shopping advertisements on customer purchasing behaviour. It determined whether online advertising was more effective than traditional media.
It investigated what additional elements influence how consumers perceive internet advertising. And will research whether online shopping advertisements would increase product sales volume. The study is, however, limited to Jumia’s online store.
1.7 Limitations of the Study
The researchers encountered minor restrictions when conducting the study, as is typical of any human undertaking. The significant constraint was the scarcity of literature on the subject, so the researcher incurred additional financial costs and spent a significant amount of time sourcing for relevant materials, literature, or information,
as well as in the data collection process, which is why the researcher chose a small sample size. In addition, the researcher will conduct this study while working on other academic projects. Despite the constraints, the researcher downplayed them all while assuring that the best was delivered.
1.8 Definition of Terms
Online shopping is a type of electronic commerce in which customers can purchase goods or services directly from a vendor via the Internet using a web browser or a mobile app. … Online retailers typically allow customers to utilise “search” functions to find certain models, brands, or items.
Online advertising, also known as online marketing, Internet advertising, digital advertising, or web advertising, is a type of marketing and advertising that sends promotional messages to consumers via the Internet.
Consumer Buying Behaviour refers to the measures that consumers take (both online and offline) before purchasing a product or service.
Sales volume refers to the number of units sold within a reporting period. Investors use this metric to determine if a corporation is expanding or decreasing. Within a company, sales volume might be tracked by product, product line, customer, subsidiary, or sales region.
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