Research Paper
Commerce
E-ISSN No : 2454-9916 | Volume : 3 | Issue : 9 | Sep 2017
EFFECTS OF ONLINE ADVERTISING ON CONSUMERS IN COIMBATORE CITY 1
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Dr. M. S. Loganathan | Mr. S. Nirmal Kumar | Ms. M. Lakshaya Devi 1 2
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Assistant Professor, PG & Research Department of Commerce (CA), Hindusthan College of Arts & Science, Coimbatore. II.M.Com (CA), PG & Research Department of Commerce (CA), Hindusthan College of Arts & Science, Coimbatore.
ABSTRACT “Online advertisement has come a long way today. More and more new medium is being explored each day to make a successful advertising campaign. Internet that has in recent times picked up advertising medium has become has become the favorite of the advertiser in no time. Online advertisement, also called internet advertising uses the internet to deliver promotional marketing messages to customers, it includes Email marketing, search engine marketing, many type of display advertising and mobile advertising. This study reveals that the effectiveness of online advertising and usefulness and the reasons for using online advertisement” Online advertising, also called online marketing or Internet advertising or web advertising is a form of marketing and advertising which uses the Internet to deliver promotional marketing messages to consumers. Consumers view online advertising as an unwanted distraction with few benefits and have increasingly turned to ad blocking for a variety of reasons. KEYWORDS: Online, Advertising, Consumer, Internet, Effectiveness etc INTRODUCTION Online advertising refers to the type of marketing strategy that involves the use of internet for promotion of products by delivering the marketing messages to the larger consumers. It includes delivering ads to internet users via websites, e-mail, ad supported software's, text messaging and internet enabled cell phones. Philip Kotler in Marketing management Millennium Edition mention that the internet population is younger, more affluent, and better educated and they easily find their way onto the internet, the cyberspace population is becoming more mainstream and diverse. In on-line marketing, it is the consumer, not the marketer, who gives permission and controls the interaction. Internet consumers have around-the-clock access to varied information sources, making them better informed and more discerning shoppers. TYPES OF INTERNET MARKETING Internet marketing is broadly divided in to the following types: Ÿ
Display Advertising: the use of web banners or banner ads placed on a thirdparty website to drive traffic to a company's own website and increase product awareness.
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Search Engine Marketing (SEM): a form of marketing that seeks to promote websites by increasing their visibility in search engine result pages (SERPs) through the use of either paid placement, contextual advertising, and paid inclusion, or through the use of free search engine optimization techniques.
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Search Engine Optimization (SEO): the process of improving the visibility of a website or a web page in search engines via the "natural" or un-paid ("organic" or "algorithmic") search results.
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Social Media Marketing: the process of gaining traffic or attention through social media sites.
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Email Marketing: involves directly marketing a commercial message to a group of people using E-Mail.
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Referral Marketing: a method of promoting products or services to new customers through referrals, usually word of mouth.
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Affiliate Marketing: a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts.
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Content Marketing: involves creating and freely sharing informative content as a means of converting prospects into customers and customers into repeat buyers.
BENEFITS OF ONLINE ADVERTISING Online advertising, however, is much less expensive and reaches a much wider audience and will probably give you more profit than traditional advertising. It has a lot of advantages that traditional advertising haven't even dreamed about. This new form of advertising gives such wide possibilities, that it makes your head spin: video advertising, advertising on social networks, mobile advertising,
e-mail advertising, banner advertising, Google Search advertising and a lot more. These are the benefits of online advertising: Ÿ
Less expensive. A main benefit of online advertising is that it has a much affordable price when compared with the traditional advertising costs. On the internet, you can advertise at a way more inexpensive cost for a much wider audience.
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Wider geographical reach. Online advertising gives your campaigns global coverage, which helps your online campaigns reach more audiences. This will definitely help you achieve superior results via your online advertising strategy.
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No rigorous payment. This is another appealing benefit of online advertising. In traditional advertising you have to pay the full amount of money to the advertising agency, no matter the results. In online advertising however, you have to pay only for the qualified clicks, leads or impressions.
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Easy result measurement. The fact that it's so easy to measure makes online advertising more appealing than the traditional advertising methods. You can find a lot of effective analytics tools in order to measure online advertising results, which helps you know what to do and what not to do in your following campaigns
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More targeted audiences. In comparison with traditional advertising, online advertising helps you to easily reach the targeted audience, which leads to your campaign's success
REVIEW OF LITERATURE: Ÿ According to Cox (2010) also investigated the correlation between age and attitude and found that social network user attitude toward online advertising formats (i.e. blogs, video, and brand channel or page) differed to some extent across age groups. She explains that users who fall in the 18-28 age brackets had strong positive attitudes towards blogs, video, and brand channel ad formats. This was because users found these ad formats to be eye catching, informative, and amusing. The 35-54 age groups preferred ad formats on video and brand channels because they found them to be more eye catching, informative, and had better placement within the online page layout. Overall, online advertising formats with positive attributes are welcomed by users; however, ads that 54 are intrusive or interfere with online social networking activities, such as pop up, expandable, or floating formatted ads were disliked by network users (Cox 2010). Ÿ
According to Chi (2011), users perceive advertising differently depending on the social network, which suggests user motivations for online social networking may play a vital role in defining consumers¶ responses to social media marketing. As mentioned previously in the explanation of Pookulangara and Koesler's (2011) study, the technology acceptance model (TAM) was also used by Harris and Dennis (2011). Harris and Dennis (2011), however, used TAM as a loose framework that combined trust and the factors associated with TAM (i.e. perceived enjoyment, ease of use, and usefulness). The TAM determined that consumers, specifically students,
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International Education & Research Journal [IERJ]
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Research Paper
E-ISSN No : 2454-9916 | Volume : 3 | Issue : 9 | Sep 2017
hold a hierarchy of trust when using social media such as Facebook. Students trust 'real' friends, then Facebook friends, followed by expert blogs and independent review sites and lastly celebrities and e-retailer sites (Harris and Dennis 2011). Ÿ
Longman (2000) says “advertising is an act of telling people publicly about a product or services in order to persuade them to buy it. Along (2001) feels that advertising can be defined as any paid form of non-personal communication which is directed to the consumers or target audiences through various media in order to prevent and promote product, services and idea.
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Gillian (1982) views it as “means of drawing someone's attention to something or notifying or informing somebody of something”.
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Tuflinger (1996) says “advertising is the non-personal communication of information usually paid for and usually persuasive in nature, about product, services or ideas by an identified sponsor through the various media. So much for academic double talk. Let's talk this statement apart and see what it means.
OBJECTIVE OF STUDY To study on consumer's attitude towards Internet advertising & its effect on their purchase behavior pattern.
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Majorities (45%) of the respondents has unique ideas and they are celebrities.
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Majority (95%) of the respondents belongs to yes category for the awareness of the advertisement.
SUGGESTIONS Ÿ The numbers of respondents who use internet daily for an hour are more as opposed to those who use the internet for two hours and more than two hours. Ÿ
Most of the respondents prefer advertised products more than nonadvertised products.
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Out of the type of advertisement, online advertisement, video advertisements are preferred by majority of the respondents.
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It is found out that not many respondents spend time on online purchasing.
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Even though only a few of the respondents have experienced online advertisement fraud, almost all the respondents are aware of online advertising malpractices.
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The number of companies advertising online is soaring, but even then fraud and deception may reduce consumer confidence. Therefore it should be ensure that product and service are described truthfully in online advertisement.
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To examine consumer's perception of online ads & the degree to which it contributes to Internet advertising.
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To measure about consumer's response to online advertisements & their perception of companies this advertises online.
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Trust or confidence can be built in online business by using testimonials with the permission of customers.
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To investigate the level of satisfaction level among the consumers
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To avoid interface in work, advertisement should ne designed to meet the preferences of target customers or target audience.
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To analyses the consumer behavior relating to preference, reasons, source to buy.
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Use of multimedia and use of banner advertisement give views chance to interact with banners with help in online advertising.
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It should be dynamic in nature, where it can attract many customers.
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The number of companies advertising online is soaring, but even then fraud and deception may reduce consumer confidence. Therefore it should be ensure that product and service are described truthfully in online advertisement.
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Trust or confidence can be built in online business by using testimonials with the permission of customers.
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To avoid interface in work, advertisement should ne designed to meet the preferences of target customers or target audience.
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Use of multimedia and use of banner advertisement give views chance to interact with banners with help in online advertising.
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It should be dynamic in nature, where it can attract many customers.
LIMITATION OF THE STUDY The study has confined to urban areas as it assumed that the rural areas do not have Internet connection yet. Hence the entire findings are limited and refer to urban consumers only.
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Geographical coverage, as only two areas have been taken from Coimbatore. It is not sure whether the findings will apply to the whole country.
RESEARCH METHODOLOGY Research Methodology is a systematic way to solve the problems which are faced in this study. In research methodology there are various methods, we can use any method to solve the problems in the study. By research methodology we can explain why we are using a particular methods and why we are not using. RESEARCH DESIGN For the purpose of study secondary data has been used. The study aims at narration of effects of online advertising in Coimbatore City, a research adapted in this study as be descriptive in nature. STUDY AREA Coimbatore, an industrially developed and commercially vibrant city, has traditionally been an entrepreneurial home ground for TN. The development of Hydro electricity from the Pykara Falls in the 1903s kick started the cotton boom in this area. RESEARCH INSTRUMENT Well-structured questionnaire has been used to collect primary data. Personal Interview method was employed to collect primary data. The questionnaire consisted of both quantitative and qualitative aspects in nature. RESEARCH TOOL The simple mean is the commonly used measure of central tendency used in the present research on many occasions like demographic details. SAMPLE SIZE For the purpose of the study, the researcher has to select 100 Respondents. TOOLS USED FOR THE STUDY The following tools are used for the purpose of the study: 1. Percentage Analysis. FINDINGS Ÿ Majority (65%) of the respondents belongs to male category. Ÿ
Majority (55%) of the respondents are in the age group of above 20 years.
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Majority (35%) of the respondents are in the Academic Jobs.
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CONCLUSIONS Advertising on the World Wide Web has many advantages and disadvantages. I believe that in my opinion, that the advantages outweigh the disadvantages. Having online advertisement, allowing your advertisement to be viewed globally all around the world, takes your business to a whole new level targeting much more audience. Its low cost, offers small business to invest in online marketing cutting down in initial cost of marketing. Internet's vast scope also allows every day users to experience more services provided by business and makes it a convenient places for shoppers. It allows people get more time out of their life, that other traditional shopping methods such as driving to a store to pay bills. With the help of the internet, it has helped us humans in many ways. There would most importantly always be disadvantages, but most importantly in my opinion, the advantages outweigh the disadvantages. The World Wide Web is always been developing and in this instance it would create a even better place for online advertisement. It proves to be the foremost advertisement method along all other media, and guarantees results every time. REFERENCES 1. McFall, Liz, Advertising: A Cultural Economy, Thousand Oaks, CA: Sage Publications Inc., 2004. ISBN 0-7619-4255-6 2.
Mulvihill, Donald F., "Marketing Research for the Small Company", Journal of Marketing, Vol. 16, No. 2, Oct., 1951, pp. 179–183.
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Packard, Vance, The Hidden Persuaders, New York, D. McKay Co., 1957.
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Petley, Julian (2002) "Advertising". North Mankato, Minnesota: Smart Apple Media, ISBN 1-58340-255-1
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Young, Charles E., The Advertising Handbook, Ideas in Flight, Seattle, WA
International Education & Research Journal [IERJ]
Research Paper
E-ISSN No : 2454-9916 | Volume : 3 | Issue : 9 | Sep 2017
April 2005, ISBN 0-9765574-0-1 6.
Wernick, Andrew (1991) "Promotional Culture: Advertising, Ideology and Symbolic Expression (Theory, Culture & Society S.)", London: Sage Publications Ltd, ISBN 0-8039-8390-5
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Dr G. George, “marketing management”, Sultan Chand & Sons publishers, Seventh Edition.
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Khan M.Y and S.P.K Jain, “Basic marketing”, Tata Mc Graw Publishing Company Ltd, New Delhi.
9.
Louw, Eric. (2001) The Media and Cultural Production. London: Sage Publications.
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