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This document summarizes a research study on students' perceptions of online advertising and how it influences consumer behavior. The study uses qualitative research methods including a questionnaire to understand students' views of online ads, how ads influence their purchasing decisions, and any challenges they face. The document outlines the study's objectives, literature review, methods, findings and discussion sections. Key findings include that students have positive views of online advertising's growth potential but are also likely to view ads negatively. Students report online ads can sometimes provide useful information to inform purchases, but the quality of advertised products does not always meet expectations.
This document summarizes a research study on students' perceptions of online advertising and how it influences consumer behavior. The study uses qualitative research methods including a questionnaire to understand students' views of online ads, how ads influence their purchasing decisions, and any challenges they face. The document outlines the study's objectives, literature review, methods, findings and discussion sections. Key findings include that students have positive views of online advertising's growth potential but are also likely to view ads negatively. Students report online ads can sometimes provide useful information to inform purchases, but the quality of advertised products does not always meet expectations.
This document summarizes a research study on students' perceptions of online advertising and how it influences consumer behavior. The study uses qualitative research methods including a questionnaire to understand students' views of online ads, how ads influence their purchasing decisions, and any challenges they face. The document outlines the study's objectives, literature review, methods, findings and discussion sections. Key findings include that students have positive views of online advertising's growth potential but are also likely to view ads negatively. Students report online ads can sometimes provide useful information to inform purchases, but the quality of advertised products does not always meet expectations.
Perception towards Online Advertising and Its Influences on Consumer Behavior Ngo Thanh Ha English 100 January 10, 2014 Tran Thi Thu Trang
ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 2
Contents LITERATURE REVIEW ................................................................................................................................ 8 METHOD ................................................................................................................................................ 11 PARTICIPANTS ............................................................................................................................................... 11 RESEARCH DESIGN ......................................................................................................................................... 11 MEASURES ................................................................................................................................................... 12 PROCEDURE .................................................................................................................................................. 13 FINDINGS AND DISCUSSION ................................................................................................................... 14 FINDINGS ..................................................................................................................................................... 14 Students have positive disposition towards growth potential of online advertising ............................ 14 Students are more likely to have negative perception towards online advertising .............................. 15 Online advertising sometimes is useful and informative ...................................................................... 16 Students use online advertising as a service to aid in consumer decision making ............................... 17 Quality of services and products advertised through online advertising is not as students expect ................................................................................................................................................... 18 DISCUSSION .................................................................................................................................................. 19 Students have positive disposition towards growth potential of online advertising ............................ 19 ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 3
Students are more likely to have negative perception towards online advertising .............................. 21 Online advertising sometimes is useful and informative ...................................................................... 23 Students use online advertising as a service to aid in consumer decision making ............................... 25 Quality of services and products advertised through online advertising is not as students expect ................................................................................................................................................... 27 CONCLUSION .......................................................................................................................................... 30 APPENDIX A: QUESTIONNAIRE ............................................................................................................... 32 APPENDIX B: FIGURES AND TABLES ........................................................................................................ 34 REFERENCE ............................................................................................................................................. 38
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List of Figures Figure 1. Average Times per Day of Seeing E-Ads ................................................................. 34 Figure 2. Attitudes towards E-Ads ............................................................................................ 35 Figure 3. Perceptions on Underlying Factors about E-Ads .................................................... 35 Figure 4: Average Points of Underlying Factors ..................................................................... 36 Figure 5. Perceived Values of E-Ads ......................................................................................... 36
List of Tables Table 1. How Online Advertising Influence on Consumers .................................................... 37 Table 2. Challenges Consumers Encounter .............................................................................. 37 Table 3: Quality of Products bought through Online Advertising ........................................ 37
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Perception towards Online Advertising and Its Influences on Consumer Behavior Nowadays, as well as the breaking out of the Internet, several of different services are being occurred on it such as shopping online, social networks, online newspapersin order to attend to relaxing requirements of human beings and advertisements are one of them. Different from the previous studies, this study explores students perceptions towards advertising which usually appears on the Internet; in other words, it is called Online advertisement- one of the fastest forms to approach Internet users. However, there are many contrary ideas of users about this genre of marketing, about the effectiveness of them on their choice of products. In terms of Internet users, there is considerable academic research into the motivations behind consumers attitudes toward and perception of advertising and the Internet. On the other hand, online advertisements also act directly on many firms. For example, the last decade is a short time which turned Google from a humble search company into the E-Marketing tycoon with earning profits were an estimated 28 billion of dollars (Insider, 2011). The future of Internet is dependent upon the continued support of advertisers in this new medium, which is linked to the acceptance of advertising on it by their target audience. This exploratory study used the qualitative research methods of conducting an inquiry to gain insights from the student participants. Therefore, the aims of this research are to find out the feelings of students when having too many advertisements sent to them (whether they like or dislike, if they pay some money for those goods, etc.) and they effect on them in which form. In recent years, online advertising has developed strongly in Vietnam and theses advertisements turn up numerous on many websites. For instance, there are some websites which ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 6
specialize in diffusing online products such as nhommua.com, muachung.vn, cungmua.com, etc. Besides, when accessing any websites or forums to see movies and listen to music, Internet users may come across many spam emails which manifest continuously. So there are three main reasons so that our group goes on this research: First of all, AEP students are very interested in the Internet, they suggest that Internet is a wonderful world where they can do anything they want, of course, no one is unaware of the advertisements appear incalculable on the Internet. Therefore, they will be pleased to answer our questions. Secondly, the recent development of shopping online is spreading in Vietnam and the main consumer using this kind of shopping are youngsters, especially for AEP students, some of them have an online fashion shop and many of them used to buy something on the Internet by that way. Therefore, E-Marketing affected them by any ways. Finally, there are quite many previous studies and articles which referred to this issue. We suppose that these are resources of great worth for our study in this area. The major purpose of this study is to investigate the influence of online advertisings on AEP Students. Specially, the study determined: The views of students about online advertisements Find out the disposition of students towards online advertisings. Find out the attitudes and perceptions of students towards the online advertisings appearing on many websites. ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 7
How advertisements effect on consumer purchase behavior of students Find out the ways online advertisements rule over students choice of products. Find out the challenges students encountered while patronizing products and services seen advertised on the web. In order to explore how students perception towards advertising on the Internet, the research questions to be addressed in this thesis are: 1. What are the views of AEP students about online advertising? 2. In what ways have online advertising influence consumer behavior of AEP students? We also hope that throughout our study, online advertisers can understand nonmarketable issues in their advertisements, and then they can develop E-marketing by the better way which makes people to be pleased. At last, our team expects from the students the main consumers on the Internet will find out how to manage to buy products by the online advertisements.
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Literature Review Advertising (Ads) provides information about products and services to intending consumers. This information help consumers to make choices among different brands based on their needs, wants and problems confronting them. The ultimate purpose of advertisers is to make their audience purchase such products and services either immediately or in the near future. Mcquail sees advertising as a paid publicity in media for goods or services directed at customers. It has various aims including the creation of awareness, making brand images, forming positive association and encouraging consumer behavior (McQuail, 2005). Belch & Belch described the internet as an advertising medium. According to Belch & Belch, web advertising is in a variety of forms. These are banner ads, sponsorships, pop ups, interstitials, push technologies or web casting and links (Belch, G. E., & Belch, M. A., 2001). Using a convenience sample of 329 undergraduate students, Goldsmith and Lafferty assessed the effects of viewing Web sites on Internet advertising. The findings are both positive and negative for online advertisers. Visiting Web sites appear to increase the ability to recall brand names and to improve consumers views of the brands. However, these young consumers perceive both advantages and disadvantages in Web advertising. The advantages include providing privacy and more information and the disadvantages include cluttered and hard to read Web sites (Goldsmith, R. E., & Lafferty, B. A., 2002). ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 9
On the study of how young consumers perceive the Web as an advertising medium in relation to other traditional media, Calisir discovered that the Web site is a less effective medium for communicating both brand and corporate image, although it is a more reliable source of information and less irritating than traditional media like radio, television, press, and magazine. The author suggests that Web addresses should be included in outdoor ads to prompt young consumers to visit the Web sites to obtain more information on the products or services of their interest (Calisir, 2003). Wolin and Korgaonkar examine the differences between males and females in consumer beliefs and attitudes toward Internet advertising. The study revealed gendered differences with males exhibiting more positive in both beliefs about and attitudes toward Web advertising (Wolin, L. D., & Kogaonkar, P., 2003). One of the established works in the advertising literature is Ducoffes framework for predicting consumers value and attitude toward traditional advertising. Entertainment, informativeness, and irritation are identified as factors contributing to consumers evaluations of advertising values and attitude (Ducoffe, How consumers assess the value of advertising, 1995). Ducoffe then applied the model to the Web environment. Without distinguishing the two types of advertising strategies (brand building and targeted), he confirmed that attitude toward Web advertising is directly dependent on advertising value. Furthermore, advertising value is dependent on perceived levels of entertainment, informativeness, and irritation (Ducoffe, Avertising value and advertising on the web, 1996). Brackett and Carr further validated Ducoffes model and extended the model to include credibility and consumer demographics. ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 10
Credibility is directly related to both advertising value and attitude. Demographic variables such as college major and gender are shown to affect only attitude toward advertising. Brackett and Carr did not separate brand building from targeted purposes (Brackett, L. K., & Carr, B. N., 2001). Based on the review of the research studies mentioned above, it is clear that Internet advertising is gaining more attention and should be an essential part of a marketers advertising media mix. However, it seems that there are inconclusive findings regarding the following issues: 1st. Consumer response toward Internet advertising. 2nd.The effectiveness of Internet advertising. 3rd. The relationship between Internet advertising and purchase intention. These inconclusive findings call for further studies on Internet advertising to gain more insight into consumers response and perception of the Internet as an advertising medium. In addition, more studies are needed to cover various samples in different countries to increase external validity of the research findings. ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 11
Method Participants The study uses the survey research design and Internet resources. This study covers students in Advanced Educational Program (AEP) in National Economics University (NEU). The population for the study comprises Second year students- Intake 54 students who are making courses in the study area. The students are all interested in surfing Internet. There are 4 classes in Intake 54 and they learn in the morning and afternoon. Thus majority of these students have a computer or a laptop connected with the Internet. The average class size is 45 students. Research Design According to my research questions, we design a questionnaire (English version will be introduced in appendix) including only selection questions. In the next step, we will carry out a survey of AEP Students (I-54 students) in 2 days. The surveys distributed are 100. Then we totalize these questionnaires and analyze the data carefully. The data we collect through the survey is just primary data. Beside the primary data, we also use some secondary data including online newspapers articles and academic research as a reference sources to support our ideas. ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 12
Measures Altogether 100 copies of the questionnaire will be administered by hand and via the Internet to the respondents. Data will be analyzed using means, frequencies and percentages. All of the metrics will be coded and classified by mathematical tool of Excel software. The survey questionnaire contained questions measuring the frequency rate of E-Ads, attitudes and perceptions of students toward E-Ads, perceived values of E-Ads and how they influence on purchase behavior. One item was used to measure the frequency rate of E-Ads in terms of the average times per day of seeing Ads. The respondents were asked how many times, on the average, the saw the E-Ads when surfing the Internet per day. Three items were applied to measure students attitudes toward E-Ads in terms of favorableness, what they like and desirability and they chose one of three options only. The respondents were asked to answer the questions based on a five-point scale. An example of the scale ranged from (1) strongly agree to (5) strongly disagree with respect to the measurement of perceptions and perceived values. Three main factors were used to evaluate perceived values of E-Ads namely useful, important and valuable. The perceptions of the students toward E-Ads were measured based on several nouns as follows: Entertainment Irritation Interactivity Informativeness Credibility Privacy ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 13
The respondents were asked to indicate their level of agreement with respects to each of these six dimensions in terms of how they perceived E-Ads. The variable Consumer Behavior was measured using multiple choices. Respondents were asked which way E-Ads influenced on them and the quality of products bought via E-Ads. They were asked to tick only one option in each question. They also were asked to tick many choices they wanted. Procedure Works H Dip M. Anh Outline draft research Outline official research Design draft questionnaire and draft interview questions
Print official questionnaire and interview questions
Give out the questionnaires and interview Collect the questionnaire Input data Process data Analyze data Summarize data Write the draft report Write the official report
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Findings and Discussion Findings Students have positive disposition towards growth potential of online advertising Nowadays, with the wide deployment of digital technologies, come along information artifacts in various forms for various purposes that consumers have to interact with, the online advertising, including brand building Ads and targeted Ads become more familiar with Internet users. The bar chart 1 illustrates the proportion of people reported seeing number of online Ads every day. Respondents overall impressions of the Internet advertising were assessed with the question, How many times per day do you see online advertising? The results indicated that all of the respondents came across the advertising on the web at least once, of whom nearly two thirds of answers was 1 to 5 times per day, 20.69% saw online Ads appearing from 6 to 10 times and the remaining 17.24% of respondents complained that they were obliged to see pop-ups, banner on the website over 10 times per day. Hence, there is a little consensus among those who have had at least some Internet experience about the evaluation of online Ads. The previous section was devoted to examining respondents impressions of Internet advertising. In this section, the relation between respondents attitude and E-Ads is examined. Attitude is an overall or take-away message one forms toward a stimulus and is normally measured by items such as favorable, like and desirable. The chart 2 gives information about the consideration for students attitude to the development of online advertising today. ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 15
In general, the number of students believed that online advertising was a favorable marketing industry made up over 41%. The proportion of what I like group was approximately 38%, and what I like here means pleased or neutral. Finally, there was only 21% of the respondents highly appreciated potential of online advertising, they asserted that the heading of E-Marketing today was desirable. From these figures, a lower proportion of participants believed in the growth of advertising on the Internet. This will be contrasted in the next speculation that online Ads would be judged through many underlying factors. Possible reasons why proportionally fewer people desired E-Ads than favored them are discussed in the Discussion part. Students are more likely to have negative perception towards online advertising In Figure 3, we have identified six underlying factors for perceived values as entertainment, informativeness, irritation, credibility, interactivity and privacy concerns. To assess the relationship of these factors with overall perceptions toward online advertising, the relatedness of these items was analyzed by displaying the ratio. Nearly two thirds somewhat agree online advertising is irritative while the number of people who has no sympathy with the credibility of them was over half. With reference to privacy of advertising, there were up to three quarters assumed that online advertising was not secrecy. These figures were affirmed by means of the rating of each factor in Figure 4. There was many people assumed that online advertising made them irritated (2 points- somewhat agree). In addition to confidence in online advertising, more participants felt they could not generally trust E-Ads than felt they could trust them, thus the score of Credibility item was very high (3.8 points- somewhat disagree). A surprised result that contrasted with the scores of entertainment and informativeness item, respondents marked about 3.86 points for privacy factor. ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 16
Online advertising sometimes is useful and informative Carried out a survey of 100 AEP students about their perceptions toward E-Ads, we asked them the knowledge of advertising utility on the Internet throughout factors above. Advertising utility consisted of items related to the value or effectiveness of advertising in meeting consumers need- that is, how informative and entertaining the online advertising is and how useful it is for making purchase decisions. Indeed, informativeness and entertainment have been identified as positively contributing to the perceived values of E-Ads in the Figure 5. The chart 3 shows consistent low scores on entertainment, informativeness, interactivity. The majority of participants agreed somewhat that E-Ads is informative and entertained (1.93 and 1.99 in turn). However, they did not hold such a favorable view of E-Ads enjoyableness. In terms of the interactivity item, they estimated this factor 3.11 point meaning that they occupied the middle ground about the interactivity between online advertising and consumer. Value can be measured in a number of ways to indicate a sense of worth and reflects cognitive evaluations. This study used three items: useful, important and valuable. Figure 5 shows the group means. Online advertising hold slightly higher score on being valuable (3.15 points- neither agree nor disagree). Participants agreed that the advertising on the website was useful in part (1.88 points) and the important level was just assessed at 2.88 points (neither agree nor disagree).
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Students use online advertising as a service to aid in consumer decision making Naturally, advertising only appears when human being has demands of purchasing. And online advertising is one of the masks in broadcasting products and services of shopping online. So, how and in what way E-Ads controlled the clients purchasing decisions. The results obtained from the preliminary analysis of usefulness are presented in Table 1. This table illustrates the ways online advertising influenced on students. Generally, shopping online is quite popular with students. However, only 30.22% of respondents were used to purchasing goods thanks to online advertisements. By contrast, the percentage was 7.91% for the number of people who had never paid attention to this form. Furthermore, the number of students bought some of products and services so advertised made up 15.83%. However, 23.02% of students answered that they just used those E-Ads as reference materials for their future purchases. Thus, in the future, they could buy products either via the Internet or direct purchase. Our questionnaire also asked the participants to judge the influences of online advertising by means of pricing and belief. There were just 4.32% of people suggesting that the products and services supplied on the online stores were too expensive. Meanwhile, 18.70% of respondents said that they did not trust online purchases because sometimes banners and pop-ups made them offended compared with the score of Credibility participants marked in Figure 3 (3.8). ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 18
Quality of services and products advertised through online advertising is not as students expect Compared with the percentage of people bought and used products and services (more than 46%), we brought a question out for the students that which challenges they encountered while patronizing products and services seen on the website. Overall, services were not provided as advertised, there was over half of participants complained about this challenge (55.17%). The percentages were 24.14% and 27.59% for Lack of access to Internet factor and Fraud factor respectively. By contrast, bad delivery factor and erratic electricity supply factor were quite few in compared with factors above (10.34% and 13.79% respectively). Nevertheless, when evaluating the quality of products and services bought throughout online advertising, there was only 20.59% of students pleased with them, they said that the products exactly liked the details of advertising while the proportion of people tricked was 17.24%, what they bought via online purchase was completely different from the details of advertising. In addition, the number of respondents not expected too much accounted for about half, because the products they received were just quite like the details of advertising. Finally, there were 13.79% of people who have never using online purchase. This questionnaire was conducted to answer the two questions raised at the beginning of this paper. Overall, this study reveals the following take-away messages: ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 19
Consumers hold extremely negative scores on attitudes and perceptions. Low scores were also found for entertainment, informativeness, irritation and interactivity, and high scores for credibility and privacy concerns. Consumers mainly used ads to purchase and plan for their future purchases and were not pleases with the services online stores supplied. Despite the negative reactions, many consumers used online advertising as an efficient tool to purchase via the Internet. In addition, the quality of products and services was not as they expected. Discussion Participants recognized in online advertising both benefits for consumers and economic advantages for advertising networks. The most commonly articulated benefit of online advertising was that it would help participants see advertising targeted towards and relevant to their personal interests. Some participants also expected that marketers would use online advertising to target special offers to consumers who were interested in a particular product. Students have positive disposition towards growth potential of online advertising Internet is used for many different aims. Nowadays, students make use of Internet to serve for entertainment or relaxing, namely searching details, chatting on Yahoo or Facebook, listening to music and seeing movies. If these accessing goals made up a high rate, it was because the objects investigated were 19 year-old students who are still youngsters. Therefore, the demands of entertainment have a high level. ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 20
In addition, the evolution of free websites happens in amusement area. Just consider particularly online music website in Vietnam, there is over 100 pages not including abroad websites. Along with breaking out of information over the world, a lot of search services were founded such as Google, Ask, and Bing. For example, in 2011, Ask.com achieved 210 million times for unique visitor and 2 billion times for page view. In fact, online advertisers usually approach students through entertainment websites. There are two reasons which induced this result: demands of using Internet of students and freedom of websites. In regards to the first cause, compared with the data achieved from Figure 1, the relationship between the marks of accessing Internet and the density of appearance of advertising on the websites is extremely closed. It is complicated that website attracts many people, it contains many advertisements. Thus, as mentioning above, students usually use Internet to relax; online advertisers approach the clients by posting product advertisements on the amusement websites. On the other hand, the remaining reason is that the websites such as social network search engines and forum act as free online websites. Therefore, to maintain the operation of pages, administrations open the service of posting advertising on their pages. For instance, onphim.net is a website which can see many hot free films immediately, when login in these pages, the users can see a lot of advertisements on it. Those are the reasons for why advertising appears dense on these kinds of pages. ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 21
However, growth potential of online advertising industry is appreciated at favorable level. The reasons lodged are very objective. The fact that entertainment, credibility and interactivity directly contribute to attitude may suggest that competition of online advertising based on underlying factors, which will be mentioned in the next part. Students are more likely to have negative perception towards online advertising Look at Figure 3 we can see two varying opinions. One supported that online advertisements are quite informational and entertaining whereas the other one disagreed with the credibility and the privacy of online advertising bringing to avoiding advertising. For us, there are three main reasons for this. First of all, students avoid advertising on websites when they feel it disrupts their goals online. If students use Internet for a pressing case such as writing report or learning English, it will be very uncomfortable when there are too many advertising appearing on the screen that will induce difficult concentration for the users. In addition, they were annoyed by advertising that suddenly pop up or make noise. They felt that many of the advertising were not relevant to them. They did not believe that there is a link between the advertising they receive on their site and the information they had disclosed on their site. The respondents also understood they are able to use the websites for free because of the advertising on them. They did not feel that there was too much clutter on their sites or that the advertising disrupted their time online. Most of them were still distrustful of the validity of the information or the potential consequences of clicking onto an advertisement. ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 22
Another point to consider is students ignore advertising when they perceive that there is too much clutter. The proportion of people who felt misled by E-advertising are quite appropriate the number of people avoiding E-advertisement in the Figure 3. From that point, we can realize the connection between avoiding and misleading details, in other words misleading details is one of the causes of ignoring E-advertising. For example, to see the advertising, clients usually go on some steps such as supplying personal details, moving another page and something like that. These steps cause clutter in consumers mind which make them feel offended and uncomfortable to continue them. Finally, students avoid if they had negative experiences with the previous online advertisements. The students are distrustful of online advertisements because the details of advertisements are mess and baseless, otherwise they also appear too much on the Internet-create washy information for viewers unexpectedly. Most of this distrustful also comes from word of mouth, parents and peers. Far from that, students see advertisements as a risk or threat. Many of them had heard of people who had negative experiences such as getting a computer virus or receiving incorrect information and were therefore reluctant to click onto any advertisements. For instance, on the forums, there are some vibrate messages such as click onto, receive The New Ipad or Do you know your IQ? Click now, but in fact, only reading the title of them we can realize that they are unjustified and cannot believe them, however, if the consumers click on them, they will be asked to supply phone number or name. These can effect on the secretary and privacy of the users. ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 23
On the surface, advertising on the Internet should be a very attractive proportion for marketers and advertisers. Advertising messages can be sent to specific targets based on their disclosed interests and demographics. These messages appear in a website which is controlled by receivers of the message and is appreciated by them. The receiver of message is generally in a relaxed frame of mind and has chosen to be on the Internet to relieve boredom or to socialize. Yet, if advertising is ignores or dismissed then advertising dollars are wasted. Online advertising sometimes is useful and informative Although most of students had a negative perception towards E-advertising, someone still found out the benefits of advertising, especially clothes sales, games online advertising and study courses. Some male students enjoyed playing the interactive games that appeared on their site but most did not view this as advertising. However, they would not give out any personal information to receive prizes from these games. Female students loved clothes or accessory which broadcasted fascinatingly on the websites. They suggested that this kind of advertising is pretty clear and trustful. They do not ask buyers to give personal details as well as do not need to pay any money to use them, it is simple that consumers read advertising, if they like, they will buy. In fact, advertising value and advertising perception are highly associated. Therefore, a consumer who assesses advertising to be valuable is expected to generate favorable perception. In this sense, Advertising value is positioned as one of the antecedents (or predictors) of Perception toward Advertising. Furthermore, entertainment would directly impact advertising attitude. Although interactivity does not contribute to value, it does have a small but significant ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 24
effect on advertising attitude. This relationship is the same for both traditional and Internet based advertising. One way of interpreting the high correlations interactivity has with the other four constructs is that interactivity enhances entertainment for example. High interactivity results in high level of perceived entertainment, which in turn contributes to advertising value. That is, interactivity itself does not contribute to the value directly but has impact on the antecedents of value. High interactivity also seems to correlates with low irritation level, high credibility and high in formativeness, which all has positive impact on value. People who believe online advertising has a positive impact on the economy tend to have a positive attitude toward online advertising. A basic view of advertising proponents is that advertising is the lifeblood of business it provides consumers with information about products and services and encourages them to improve their standard of living. Information has been a common belief about advertising identified by previous studies. One of the most important functions of advertising is to improve information. Past research on Internet use motives has revealed that searching for information is the primary reason why people use the Internet. It is logically sound that those who perceive online advertising to be informative are more likely to favor it. Entertainment is another component influencing the effectiveness of advertising by establishing an emotion link between consumers and a brand message. With the marketplace cluttered with advertising messages vying for peoples attention, advertising needs to be interesting and enjoyable in a creative way to attract audiences attention. Furthermore, information and entertainment are often intertwined with each other in an information society. ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 25
Students use online advertising as a service to aid in consumer decision making 46% of participants have gone shopping online at least once by depending on advertising, it is astonishing figure. That proved the strong development of shopping via the Internet in general and online advertising in particular. Although there are quite a lot of people who do not believe in online advertising, they still usually buy something through advertising because of the cheapness of products and the appropriateness of students pocket. In addition, instead of going to each store to see and choose something for self, from now on, students only use mouse to click in anything they want on a shopping website and they need to pay a routine money to home delivery. But online advertising still induce for consumers a lot of doubts. With the same good, this website sold it with this price while that website sold it with another price or different origin. Thus, when reading baseless advertising like that, students will feel misled and misunderstood. Maybe the reason is competition between firms, they want to achieve the highest sales as well as create a stable brand for self. Also may be the reason is having someone who wants to seek profit, give out the wrong information and reduce consumers to be tricked. Nevertheless, we must admit E-advertising is pretty engrossing which makes viewers to notice them. Because of being shopping online, picture of product plays the most important factor during students purchasing decision. The snapshots are taken in many different angles in order to describe product clearly. And this is the only way so that consumers can see the shape or ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 26
color of product they choose. Therefore, image is always the aspect fascinating viewers in E- advertising. Subsequent to seeing pictures, they pay attention to enclosed information of product such as price, producer or size. From then, they can give out comparison and decisions for whether should buy that one or not. Finally, people notice full of promise advantages advertisers supply which ensure for the operation of product or sales promotion of it. Look at this, we can see the process of clients purchasing decisions, this process seems not to change even when they are going shopping by Internet: seeing picture of product (shape, color) then seeing enclosed details after that is warranty, it is quite similar to going shopping in fact. Though effect aspect made up more than full of promise advantages aspect, we believe that this aspect depends on buying objects. If buyer finds an item initiatively, they will not notice effects like sound, content or color of advertisements. By contrast, some people also buy an item when running into any advertising. (In fact, they are attracted by effects of advertisements and curious about them). Nevertheless, many students complained that fraud and lack of access to Internet were their main challenges while patronizing products and services advertised on the web. Minority of the respondents said products were delivered in bad conditions was their difficulty. Generally, people still seem not to fully believe in credibility of online advertising and advertisers have not had a well-balance operation in caring customers. ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 27
Quality of services and products advertised through online advertising is not as students expect This research points out one thing that students trust the information on a brands TV more than the brands Internet. They believe that any one can develop an online advertisement and give false information about brand on websites whereas before being posted on TV, advertisements must be checked many times about reality of it. This is another reason for why the quantity of goods bought through commercial advertisements is always more than through E- advertisements. Another reason for the distrustful of students to online advertisements is the quality of products or services. In spite of 46% of people buying goods through E-advertising, 48% of them complained that the items and services they bought via Internet were only quite like the details of advertisements. As not seeing in their eyes the products they bought, suppliers can exchange goods by the poor quality products easily or they give out the wrong information intentionally (Dung Tuan, 2012) Overall, E-advertising affected AEP students by some ways. Although students still flinch with the burdensome of them, they view step by step online advertising as an effective tool in purchasing. Thus, marketers and advertisers should find out the methods to improve online advertising in serving consumers. ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 28
This study has explored the influence of E-advertising on AEP students. This research has made the following contributions to theory regarding websites as an advertising medium. These contributions are as follows: Motivations behind use of Internet such as the need for social interaction, the need for recognition, new experiences and information seeking. New model of advertising avoidance in the Internet environment like expectation of negative experiences, perception of relevance of E-advertising, skepticism about advertising claims. Characteristics of websites as an advertising including ability for interactive advertising, synergistic by supporting advertising in other different websites. Though online advertising plays an important role in purchasing decisions to some extent, it does not really take consumers belief. This asks advertisers and marketers to carry out targeted strategies to shorten distance with buyers. First of all, they should found the particular websites which display advertising on it such as nhommua.com, muachung.com instead of posting advertising density on every websites. In addition, they need to remove the unnecessary advertising on the websites to reduce avoiding of students. Along with that, before advertising is posted, advertisers must supply the information of products clearly and fully so that the consumers can see the truth of them and give out right decisions in purchasing. In some discount shopping websites, they usually send e-mails spam to ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 29
consumer strictly except having their acceptation; however, they should stop doing like that as they will cause offended f or Internet users. Finally, advertisers and marketers should not ask consumers to supply the personal details. If they are able to overcome these things, students will not have aversion to online advertising. For students, to find out the usefulness of online advertising and not feel uncomfortable with them, especially in purchasing decisions, students should learn about them cautiously. When login a websites, buyers should not supply personal details for them because it will effect on their privacy of them. Otherwise, consumers should only see advertising on the particular pages to prevent from virus injuring.
ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 30
Conclusion Online advertising is a new form of advertising that many companies all over the world are venturing into, for the purpose of informing consumers of their products and services. This study has shown that Internet has influence on consumers than any other mass media when it comes to making purchase decisions. According to Dever (2012) the Internet is the most influential in the consumer purchasing decision process than advice from friends/family and any other medium such as Television, Newspaper 66% of online consumers consider the Internet helping them make purchasing decision compared to 61% from friends/ family and 42% from Television. The influence of online advertising on consumers over other forms of advertising will continue to increase in many years to come because of its interactive nature, the global platform it presents to companies that advertised on it and the opportunities it offers to consumers to make purchases through online. Participants found online advertising both useful and privacy-invasive. The majority of participants were either fully or partially opposed to online advertising, finding the idea smart but creepy. However, this attitude seemed to be influenced in part by beliefs that more data is collected than actually is. Our understanding of consumers interaction with such information artifacts is still limited, and as a result, these information artifacts may not be designed to fulfill their greatest potentials to both serve the consumers and generate business values. This study gathers ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 31
understanding and insights, with the hope of guiding better future designs and a less annoying and stressful environment for consumers with adequate policing by certain online policies.
ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 32
Appendix A: Questionnaire Online Advertising Questionnaire We are the students from Advanced Educational Program at National Economics University. This research project is conducted as part of our study program. The aim of this research is to discover the perception towards online advertising and its influences on consumer behavior of AEP students. All data and measurements obtained from this research study will be stored confidentially. Only researcher will have access to view any data collected during this research. The research intends to cause no physical or psychological harm or offense and to abide by all commonly acknowledged ethical codes. You voluntarily agree to participate in this research project by filling the following questionnaire. You have the right to ask the researchers any question regarding this project. You also have the right to reject participation. You may withdraw from this research any time you wish. This may take 5 minutes of your time. Please make sure that you have responded to every statement. 1. How many times per day do you see online advertisings? A. 0 B. 1-5 C. 6-10 D. Over 10 2. How do you feel about the development of online advertising today? A. Favorable B. What I like C. Desirable Please indicate whether you: Strongly Agree (1); Somewhat Agree (2); Neutral (3); Somewhat Disagree (4); Strongly Disagree (5) for Q3 and Q4 3. What do you perceive the content of online advertisings today?
Factors Strongly Agree Somewhat Agree Neutral Somewhat Disagree Strongly Disagree Entertainment Informativeness Irritation Credibility ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 33
Interactivity Privacy
4. How would you rate perceived values of online advertisings? Strongly Agree Somewhat Agree Neutral Somewhat Disagree Strongly Disagree Useful Important
Valuable
5. In what way does online advertising have influence on you? Please choose only one statement A. Purchase some of the products and services so advertised B. Use some of the products and services C. Only influences me to plan for their future purchase D. It has no influence on me because the products and services are too expensive E. It has no influence on me because I do not trust online purchase F. I do not pay attention to online advertisings 6. What are the challenges you encountered while patronizing advertised products and services seen on the web? A. Erratic electricity supply B. Lack of access to Internet C. Services not provided as advertised D. Fraud E. Products are delivered in bad conditions 7. Could you consider about the quality of products and services brought throughout online advertisings? A. Exactly like the details of Ad. Very pleased B. Quite like the details of Ad. Not expect too much C. Completely different from Ad. Seem to be tricked D. Never having bought something like that before
Thank you for your help! ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 34
Appendix B: Figures and Tables
Figure 1. Average Times per Day of Seeing E-Ads
0,00% 62,07% 20,69% 17,24% 0,00% 10,00% 20,00% 30,00% 40,00% 50,00% 60,00% 70,00% 0 1-5 6-10 Over 10 Percentage of People Reported Seeing Number of E-Ads Per Day ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 35
Figure 2. Attitudes towards E-Ads
Figure 3. Perception on Underlying Factors about E-Ads
41,38% 37,93% 20,69% 0,00% 5,00% 10,00%15,00%20,00%25,00%30,00%35,00%40,00%45,00% Favourable What I like Desirable Attitudes toward E-Ads 0 10 20 30 40 50 60 70 80 90 100 Strongly Disagree Somewhat Diagree Neither Agree nor Disagree Somewhat Agree Strongly Agree ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 36
Figure 4: Average Points of Underlying Factors
Figure 5. Perceived Values of E-Ads
1,99 1,93 2,00 3,80 3,11 3,86 0,00 0,50 1,00 1,50 2,00 2,50 3,00 3,50 4,00 4,50 Perceptions on Other Factors 1,88 2,88 3,15 0,00 0,50 1,00 1,50 2,00 2,50 3,00 3,50 Useful Important Valuable Perceived Values for E-Ads ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 37
Table 1. How Online Advertising Influence on Consumers
Response Percentage Erratic electricity supply 13.79% Lack of access to Internet 24.14% Services not provided as advertised 55.17% Fraud 27.59% Products are delivered in bad conditions 10.34% Total 100.00 Table 2. Challenges Consumers Encounter
Response Percentage Exactly like the details of Ad. Very pleased 20.69% Quite like the details of Ad. Not expect too much 48.28% Completely different from Ad. Seem to be tricked 17.24% Never having bought something like that before 13.79% Total 100.00 Table 3: Quality of Products bought through Online Advertising
Response Percentage Purchase some of the products and services so advertised 15.83% Use some of the products and services 30.22% Only influences me to plan for their future purchases 23.02% It has no influence on me because the products and services are too expensive 4.32% It has no influence on me because I do not trust online purchase 18.70% I do not pay attention to online advertisings 7.91% Total 100.00 ONLINE ADVERTISING: PERCEPTION AND INFLUENCES 38
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