Measuring the Comparative Effectiveness of Online

Advertising versus Traditional Advertising for Similar

Products: A Study on Toothpaste.

A THESIS PAPER

Prepared By
Registration No: 36563
Examination Roll: 170060
Session: 2016 – 17
Batch No: 4th
Department of Marketing
Jahangirnagar University.

November 22, 2018

Measuring the Comparative Effectiveness of Online Advertising
versus Traditional Advertising for Similar Products: A Study on
Toothpaste.

A THESIS PAPER
Submitted To
Department of Marketing
Jahangirnagar University.

Submitted By
Registration No: 36563
Examination Roll: 170060
Session: 2016 – 17
Batch No: 4th
Department of Marketing
Jahangirnagar University.

Submitted In
Fulfillment of the Masters of Business Administration (MBA) Degree.

Submitted On
November 22, 2018.
 Letter of Transmittal

November 22, 2018

Md. Shariful Islam

Lecturer
Department of Marketing
Jahangirnagar University
Savar, Dhaka-1342

Subject: Submission of Thesis Paper on “Measuring the Comparative Effectiveness of

Online Advertising vs Traditional Advertising for Similar Products: A Study on
Toothpaste”.

Dear Sir,
It is my great pleasure to submit the thesis paper on “Measuring the Comparative
Effectiveness of Online Advertising vs Traditional Advertising for Similar Products: A
Study on Toothpaste”. This paper is submitted as a feature of the fulfillment of the MBA
program.

In this paper I have tried to measure the comparative effectiveness of online advertising versus
traditional advertising for similar products. Placement of advertisement along with its
importance, online advertising & traditional advertising along with their different forms have
also been defined here. I expect my endeavor would succeed to achieve your fulfillment. I will
be obliged whenever helpful to you for the clarification of any purpose regarding this paper.

I, therefore, would like to express my gratitude to you for giving me this opportunity to convey
my theoretical knowledge into reality by placing the thesis paper and request heartily to accept
this paper for your kind assessment.
Thanking you.

Sincerely,

Registration No: 36563

Examination Roll: 170060
Session: 2016 – 17
Batch No: 4th
Department of Marketing
Jahangirnagar University.
 Acknowledgement

First of all, I would like thank Almighty Allah for giving me patience and potency to
successfully complete my thesis paper. All the persons who helped me in the study from data
collection to the final preparation of this paper are to be showered with my thankful
gratefulness.

I would like to express my gratitude to my honorable thesis supervisor and instructor Md.
Shariful Islam, Lecturer, Department of Marketing, Jahangirnagar University for his advice;
suggestions, support and proper guidance that made it possible for me to complete the thesis
paper successfully.

I also would like to thank our respectable Batch Manager and the Chairperson of the Exam
Committee for his guidance and support throughout the MBA program.

Lastly, I would like to thank and express my gratefulness to my friends, seniors and juniors
who willingly volunteered the data collection process through impulsive response in the survey
questionnaire.
 CHAPTER 1.0 INTRODUCTION

1.1 ORIGIN OF THE REPORT

As a part of completion of MBA program for business post graduate students, each student has
to prepare a research paper on specific topic approved by the concern supervisor (an honorable
faculty member). The study has been conducted to fulfill the academic requirements for the
accomplishment for Masters of Business Administration (MBA) Program in the department of
marketing, Jahangirnagar University, Savar, Dhaka. This study has been followed the rules and
regulations of formal thesis preparation and presentation as instructed by the Supervisor.

1.2 BACKGROUND OF THE STUDY

Advertisement becomes effective when it can be able to deliver the right message at the right
place for the right person. For an advertisement to choose the right message & the right person
is much easier than to choose the right place. The effectiveness of advertising is very dependent
on the place where it’s being designed & targeted to be placed. As advertising is one of the
main weapons of marketing, to cope up with the newest advertising trends it’s very important
to know about the needed placement of advertising. An advertisement can be placed at two
types of platforms – online platform & traditional platform. A wrong decision regarding the
placement of advertising can make it ineffective or meaningless in time less than a second. On
the other hand, only a right decision about the advertising placement make it successful along
with giving its client & advertiser the desired outcomes. From this viewpoint it can be said that
effectiveness of an advertisement depends on its placement at the right platform either online
or traditional platform. To prove this, the emergence of this research project has been developed
so that we can be sure of the myth that effectiveness of an advertisement depends on its needed
placement. Besides we can also be able to know how to measure the effectiveness of an
advertisement based on its placement so that we can take the right decision regarding the right
placement of advertisement.

1.3 SCOPE OF THE STUDY

Marketers have made use of innovative advertising medias specifically traditional medias &
online medias to reach out the target audience successfully and hence understanding the
advertisement effectiveness is very essential in this competitive era. In this context, the subject
of advertisement effectiveness needs a fresh understanding along with the subject of identifying
important factors that will best measure the effective advertisement media for placing
advertisement to ensure desired outcome in the modern business scenario and this study will
help in this regard. Besides this study can also help to identify major research gaps and future
research prospects in the area of advertisement effectiveness. This research project will greatly
benefit different industries even for taking decisions to choose the right platform where they
should give the advertisements of their products in order to ensure the desired outcomes from
those products. In addition, it will also provide an overview of the measurement techniques to
compare the effectiveness between online advertisement & traditional advertisement for
similar products.

1.4 SIGNIFICANCE OF THE STUDY

Thesis program is essential for every student especially for the students of Masters of Business
Administration which helps them to implement their vast theoretical knowledge into practical
tasks. This thesis paper has been prepared on “Measuring the Comparative Effectiveness of Online
Advertising vs Traditional Advertising for Similar Products: A Study on Toothpaste”

In this competitive era of business, no product is sold without its promotions or advertisement.
That’s why companies are to think about their product’s effective promotions or
advertisements. An advertisement only can be effective when it can draw the customer’s
attention for whom it is designed. To draw the customer’s attention at a desired rate, the
advertisement should have to be placed at such a platform where it’s targeted customers
regularly hangout. In simple sense, to draw the customer’s attention at a desired rate an
advertisement should fulfill all the conditions to be looked at. Among all these conditions, first
one is the proper placement of the advertisement. That’s why distribution of advertisement or
placement of advertisement is a vital decision that the companies are to take very consciously.
As there are mainly two types of distribution channels or platforms of any advertisement &
they are traditional media & online media. The companies, marketers or advertisers are to take
decision that they want to advertise their products either at traditional media or online media.
To cover both traditional & online media will require huge finance for a product’s
advertisement. It’s impossible for many companies for their financial constraints. That’s why
it’s wise to choose a single media for the proper placement of advertising based on the media’s
comparative effectiveness with another media.
From this viewpoint the need of measuring the comparative effectiveness of online advertising vs
traditional advertising for similar products has proven & the significance of this study lies in that
proven need of measuring the comparative effectiveness of online advertising vs traditional
advertising for similar products by the later parts of this thesis paper. This study will be useful for the
companies, marketers or advertisers to measure the comparative effectiveness of online advertising
vs traditional advertising for similar products & also to choose the proper placement of advertisement
of their products.
 CHAPTER 2.0 LITERATURE REVIEW

2.1 OVERVIEW OF ADVERTISEMENT EFFECTIVENESS

Advertising effectiveness can be defined as the extent to which advertising generates a certain
desired effect. Measuring the effects of advertising is very important, given the amount of
investments needed for advertising. While it is not possible to obtain a global measure of the
advertising effectiveness, we should seek to develop and apply methods and measures for a
partial verification of results.
Kotler (2004) has summarized the four popular Response Hierarchy Models. These are AIDA,
HOE model, Innovation Adoption model and communication models. In all these models, the
effect of advertising communication happens in three stages- Cognitive, Affective and Co-
native. In the first stage there is attention, awareness or exposure leading to the second stage of
interest, liking and attitude culminating in to purchase behavior.
The starch model put forward in 1920s mooted the idea that an effective advertising: Must be
“seen”, must be “read’, must be “believed”, must be “remembered” and must be “acted upon”
(Wilmshurst and Mc Kay, 1999). Mathur (2005) views advertising communication as a chain
reaction consisting of various steps in a sequential manner that of creating awareness,
comprehension, acceptance of the product, belief, purchase action, use and repeat purchase.
Vakratsas et. al, (1999), by reviewing two hundred and fifty journal articles and books gives
certain insights about how advertising affects the consumer. They suggest that the hierarchy
of effects is deeply flawed and propose that advertising effects should be studied in a space
with affect, cognition and experience as the three dimensions that is determined by the context,
which reflects goal diversity of advertising, product category, competition and other aspects of
mix, stage of PLC and target market. The DAGMAR (Defining Advertising Goals for
Measured Advertising Results) Model by Russel Colley says that all commercial
communications with an objective of sale must take a prospect through four levels of
understanding: “The prospect must first be aware of the existence of a brand and company. He
must have a comprehension of what the product is and what it will do for him. He must arrive
at a mental suspicion and conviction to buy the product. Finally he must stir himself to action”
(Wilmshurst and Mckay, 1999).
In today’s highly competitive, dynamic and technology driven business circumstances,
marketers are under steady pressure to deliver the best. Organizations are continuously
improving and upgrading themselves to meet customer expectations and demands. Technology
has not only changed the way in which business is done in modern times but has also
transformed the way to reach out to target audience. Marketers have identified most recent
media options to communicate and convince potential customers. Numerous scholars have
studied the research domain of advertising and have tried to recognize different measures of
advertisement effectiveness in context of various media. This paper has critically reviewed
accessible literature on advertisement effectiveness in context of varied advertising media,
recognize major gaps in the literature and identify future research prospects on the basis of
critical analysis of literature.
2.2 EMPIRICAL REVIEW ON FACTORS THAT AFFECTS THIS STUDY

This empirical review shows that past studies are primarily focused on understanding the
effectiveness of either online advertising or traditional advertising such as effectiveness of
online advertising, effectiveness of traditional advertising, motivating factors of online
advertising to recall a brand etc.
PRITHVI B.J.; MIHIR DASH (2013) in their study “COMPARATIVE EFFECTIVENESS OF
RADIO, PRINT AND WEB ADVERTISING” shed some light on the potential of the internet,
print, and radio as advertising media, particularly in targeting particular consumer segments. It
shows the growing importance of internet advertising in consumer purchase behavior,
particularly in delivering product information. It highlights the popularity of radio, especially
among the youth. It also shows that print advertising is perceived to be effective in changing
attitudes. Finally, the analysis gives enough reason only to believe that TV advertising is indeed
the most effective medium of advertising. But didn’t provide any measurement scale to
measure the comparative effectiveness between online & traditional advertising. Here the
research gap exists.
Lim, Yet; Yap, C.-S; Lau, Teck-Chai (2011) in their research “The effectiveness of online
advertising in purchase decision: Liking, recall and click” tried to answer the question: "How
significant are the measures of advertising effectiveness in terms of (1) attitude towards the ad,
(2) ad recall, and (3) click-through rates in explaining online purchase decision." All the three
measures of advertising effectiveness were found to be significant predictors. The findings
suggest that online advertising may be a powerful marketing tool in the context of online
environment. The research findings also imply that marketers should include online advertising
in their advertising media mix as online advertising promotes online buying or online shopping.
Only online advertisement effectiveness is measured in this research.
Antun BILOŠ, Ivan RUŽIĆ & Ivan KELIĆ (2014) in their research “Online And Offline Media
Effectiveness Based On Shopping Center Communication Objectives” test and measure every
communication channel used and to determine its efficiency and cost effectiveness. The final
results showed that although offline channels contributed more in absolute numbers, online
channels were significantly more cost effective compared to traditional advertising
channels. However, due to sample limitations further research is necessary.

Prateek Maheshwari, Nitin Seth, Anoop Kumar Gupta (2014) in their research “Advertisement
Effectiveness: A Review and Research Agenda” review various studies on advertisement
effectiveness and identify a range of measures used in context of a specific media. It may be
noted that the development of the advertisement effectiveness literature from 1964 to 2013
highlights the change in the focus of researchers from traditional to modern media. It is further
observed that different dimensions are considered in different media for measuring
advertisement effectiveness which adds to the complexities and vagueness of the subject. This
clearly highlights the need of further research in the area of measuring advertisement
effectiveness as summed up in previous section.
Ravi Kumar (2018) in his research “Scale for Advertising Effectiveness: A Study on
Traditional and Interactive Advertisements as per the Lavidge and Steiner Model” has
developed a research measurement instrument (Scale) that is empirically tested to measure
effectiveness of traditional and interactive advertisements based on the model of advertising
effectiveness proposed by Lavidge and Steiner. But there are other effective advertising models
such as AIDA sequence, Information-Processing model based on which a better measurement
instrument (scale) could be developed. The researcher has only used Lavidge and Steiner
Model to develop the measurement instrument (Scale) for measuring effectiveness of
traditional and interactive advertisements. Here the research gap exists.
Limited progress has been made to measure the comparative effectiveness of online advertising
versus traditional advertising for similar products. In terms of understanding the need for
perfect placement of advertising, the need for online & traditional advertisement had been
researched. In terms of measuring the need of online & traditional advertising or measuring the
motivating factors of online & traditional advertising various approaches have been
recommended. For example, several measurement indicators have been used to measure the
effectiveness of online advertising such as Display, Conversion, Traffic Interaction,
Subscription, Coverage, Offline sales, ROI, Post-tests. In the same way different methods have
also been recommended to measure the effectiveness of advertising such as pre-testing method
& pro-testing method. What is missing from the past studies is a comprehensive and structured
approach for measuring the comparative effectiveness of online advertising versus traditional
advertising for similar products so that ad placement decision can be taken very accurately to
ensure desired output from that advertisement.

2.3 RESEARCH GAP

Throughout Seeing & understanding the overview of advertisement effectiveness & also the
empirical review on factors that affects this study, it’s clear that there hadn’t developed any
appropriate advertisement measurement scale or instrument that can best measure the
comparative effectiveness of advertising based on its placement or distribution channel. Among all
the associations that support an advertising to be effective, proper placement of advertising is the
first one have to be fulfilled by the advertiser. So it’s very needed to measure the comparative
effectiveness of online advertising vs traditional advertising for similar product through this study. This
study will be helpful to develop some measures to make the comparative effectiveness of online
advertising vs traditional advertising clear.
 CHAPTER 3.0 PROBLEM DEFINITION

3.1 PROBLEM STATEMENT

The need of measuring the comparative effectiveness of online advertising versus traditional
advertising for similar products has been recognized by several industries. According to the
traditional marketers & digital marketers, all companies want to promote their products at both
traditional & online medias with little knowing about the effectiveness of advertisements on
those medias. Because the companies don’t want to lose a single chance to make awareness &
to attract their targeted customers. But it’s not always wise to float on all waves. In today’s
competitive world it’s very challenging for the companies to advertise their products in the
right way. Besides customers are also being more complex to be attracted day by day. In this
research there is a perfect reflection of the need for a better understanding of placement of
advertising and the measurement approaches to compare the effectiveness between online
advertisement & traditional advertisement for similar products so that companies can ensure
the desired outcomes from the advertisements of their products. More specifically, the
following research questions need to be addressed:
 What is the placement of advertisement & its importance?
 Why should we think about the effective placement of advertising to ensure the desired
outcome from that advertisement?
 How can we measure the comparative effectiveness of online advertising versus
traditional advertising for similar products?

3.2 OBJECTIVES OF TH E STUDY

Broad Objective:
The long term goal of the research is to measure the comparative effectiveness of online
advertising versus traditional advertising for similar products. Placement of advertisement
along with its importance, online advertising & traditional advertising along with their different
forms have been defined here in as the process of identifying the need of the effective
placement of advertising to ensure the desired outcome from that advertisement & also
measuring the comparative effectiveness of online advertising versus traditional advertising for
similar products.
Specific Objective:
The objective of the current study is to provide a comprehensive review of literatures and
industry practices in relation to the placement of advertising and outline some measures of
checking the comparativeness effectiveness of online advertising versus traditional advertising.
Particularly, the study has the following sub-objectives:
1. To provide a comprehensive review of ad placement, the need of ad placement, online &
traditional ad platform & also different forms of online & traditional ad;
2. To develop some measures of checking the comparative effectiveness of online advertising
& traditional advertising;
3. To review current industry practices and researches in regards to placement of advertising;
4. To outline some measures of comparing the effectiveness of online advertising versus
traditional advertising.
The result of this study will be valuable to the industry practitioners as well as marketers in
measuring the effectiveness of online advertising versus traditional advertising for similar
products.
 CHAPTER 4.0 APPROACHES TO THE PROBLEM

4.1 THEORITICAL FOUNDATION

There are some important approaches that have been taken into consideration to bring an
effective solution for the problem. All the needed approaches that have been taken to bring an
effective solution for the problem cumulatively have made a theoretical foundation for this
study.
Attitude Construct
There are 3 Components of Attitudes those combinedly construct attitude towards an
advertisement. To be effective an advertisement must facilitate the all 3 components of attitude
within the customer’s mind. That’s why attitude construct has been considered in this study for
designing the questionnaire, interpreting the survey results, interpreting analyzed data & also
to find out the significant factors based on those to measure the comparative effectiveness
between online & traditional advertising will be effectively possible.
Attitudes are simply expressions of much we like or dislike various things. Attitudes represent
our evaluations, preferences or rejections based on the information we receive. It is a
generalized tendency to think or act in a certain way in respect of some object or situation,
often accompanied by feeling. It is a learned predisposition to respond in a consistent manner
with respect to a given object. This can include evaluations of people, issues, objects, or events.
Such evaluations are often positive or negative, but they can also be uncertain at times.
These are the way of thinking, and they shape how we relate to the world both in work and
Outside of work. Researchers also suggest that there are several different components that
makeup attitudes. One can see this by looking at the three components of an attitude: cognition,
affect and behavior.
3 components of attitude are:
1. Cognitive Component.
2. Affective Component.
3. Behavioral Component.

 Cognitive Component
The cognitive component of attitudes refers to the beliefs, thoughts, and attributes that we
would associate with an object. It is the opinion or belief segment of an attitude. It refers that
part of attitude which is related in general knowledge of a person.
 Affective Component
Affective component is the emotional or feeling segment of an attitude. It is related to the
statement which affects another person. It deals with feelings or emotions that are brought to
the surface about something, such as fear or hate.
  Behavioral Component
Behavior component of an attitude consists of a person’s tendencies to behave in a particular
way toward an object. It refers to that part of attitude which reflects the intention of a person
in short run or long run.

Survey Method
The first approach that has been taken to the problem is data collection. Secondary data have
been collected through past studies related to this study. For the collection of primary data
survey method has been used here. The methods involved in survey data collection are any of a
number of ways in which data can be collected for a statistical survey. These are methods that are
used to collect information from a sample of individuals in a systematic way. First there was the change
from traditional paper-and-pencil interviewing (PAPI) to computer-assisted interviewing (CAI). Now,
face-to-face surveys (CAPI), telephone surveys (CATI), and mail surveys (CASI, CSAQ) are increasingly
replaced by web surveys.

Among all these different types of surveys, online survey method has been used here.
According to the nature of this study online survey was the most appropriate & convenient one
to collect desired primary data. At present highest availability of all types of people exist in
online. Different types of people belong different perceptions towards advertisements shown
in online & traditional Medias. The decided sixteen variables to measure the comparative
effectiveness of online & traditional advertising have been extracted from these different
perceptions. It would really difficult to gain such diversified & appropriate variables by the
other survey method types except online survey.
Online Survey
Online (Internet) surveys are becoming an essential research tool for a variety of research
fields, including marketing, social and official statistics research. According to ESOMAR
online survey research accounted for 20% of global data-collection expenditure in 2006. They
offer capabilities beyond those available for any other type of self-administered questionnaire.
When estimating the measurement quality (defined as product of reliability and validity) using
a multitrait-mutlimethod approach (MTMM), some studies found a quite reasonable quality
and even that the quality of a series of questions in an online opt-in panel (Netquest) was very
similar to the measurement quality for the same questions asked in the European Social Survey
(ESS), which is a face-to-face survey.
Some studies have compared the quality of face-to-face surveys and/or telephone surveys with
that of online surveys, for single questions, but also for more complex concepts measured with
more than one question (also called Composite Scores or Index). Focusing only on probability-
based surveys (also for the online ones), they found overall that the face-to-face (using show-
cards) and web surveys have quite similar levels of measurement quality, whereas the
telephone surveys were performing worse. Other studies comparing paper-and-pencil
questionnaires with web-based questionnaires showed that employees preferred online survey
approaches to the paper-and-pencil format. There are also concerns about what has been called
"ballot stuffing" in which employees make repeated responses to the same survey. Some
employees are also concerned about privacy. Even if they do not provide their names when
responding to a company survey, can they be certain that their anonymity is protected? Such
fears prevent some employees from expressing an opinion.
Factor Analysis
4.2 Think-Feel-Do Model

Think-Feel-Do Model
This is a model of marketing communications developed by Lavidge and Steiner (1961) that
proposes seven stages through which the buyer/customer passes from unawareness of a
product or service to purchase. To be effective an advertisement must make its customer think,
feel & do or purchase its expressed product. That’s why this think-feel-do model has been
considered for this study. More specifically for designing the questionnaire & analyzed data
interpretation.
A basic hierarchy-of-effects model in reference to marketing communications is the
Think/Feel/Do Model. This model relates a customer’s level of involvement they have towards
the purchase of a product or service in a buying situation. Think, refers to consumers
recognition of a problem and then how they search out information to evaluation their way to
solving the problem. Feel refers to the different types of attitudes or preferences that consumers
may have towards a specific brand or product. Lastly, Do is the action the consumer takes. It
is the actual purchase, repurchase or the trial of a product or service. This model varies in terms
of low-involvement products, staple products like milk, gas, or batteries, or high-involvement
products, such as cars, home improvement, or computers. The more you know about the
consumer decision process the better equipped you can be as a business to relate to your
customer and best meet their needs.
The proposed seven stages through which the customer passes from unawareness of a
product or service to purchase are mentioned below:
 Unawareness,
 Awareness ,
 Knowledge,
 Liking,
 Preference,
 Conviction,
 Purchase.
Cognitive stage is denoted by awareness and knowledge,
Affective stage by liking, preference, and conviction,
Conative (or behavioral) stage by a purchase.
Measures taken before or after a form of communication is used will enable objectives to be set
and the communication's success to be analyzed. Logical progression through the stages is not
always possible - indeed, much depends on the product or service being offered and the target
group of receivers.
4.2 Hypothesis

In this research there assumed two hypotheses. The are-

Ho: There is significant indifference of all factors.

H1: There is significant difference of all factors.

4.2 Factors that Influence the Research Design

Qualitative research is a process of naturalistic inquiry that seeks in-depth understanding of

social phenomena within their natural setting. It focuses on the "why" rather than the "what"
of social phenomena and relies on the direct experiences of human beings. The three major
focus areas of qualitative research are individuals, societies and cultures, and language and
communication. The factors that have influenced the research to be exploratory are mentioned
below:

 The nature of this research.

 The focus area of this research.
 The extracted solution from this research for the research problem.
 Inquiry methods that have been used in this research.
 Knowledge that has gained from the inquiry for this research is subjective in nature.
 CHAPTER 5.0 METHODOLOGY

5.1 Types of Research/ Research Design

According to Md. Muaz Jalil (2013) there is lack of consistency in classification of different
types of research designs. Some classify based on the type of research question being addressed
(exploratory, descriptive etc.), others focus on the data collection tools (survey, quantitative,
qualitative); Stern et al (2012) classified using the basis for causal inference to categorize
different design methods. Therefore, the basic design of this paper is an exploratory research.
The term explanatory research implies that the research in question is intended to explain,
rather than simply to describe, the phenomena studied. This type of research has had a contested
history in qualitative inquiry, and divergent views of the appropriateness of such goals in
qualitative research are currently held (A. Maxwell & Mittapalli, 2008). In this context
exploration might be thought of as a perspective, ‘a state of mind, a special personal
orientation’ (Stebbins, 2001: 30) toward approaching and carrying out social inquiry.

According to (Zikmund 2007), exploratory research occurs when a researcher has a limited
amount of experience with or knowledge about a research issue. Exploratory research is
preliminary research, not the definitive research used to determine a course of action. Here
explanatory research is given an opportunity to use qualitative to analyze the triggering factors
to measure the comparative effectiveness of online advertising versus traditional advertising
for similar products. In this study, the researcher diagnosed situation and investigated the
underlying problems.

5.2 Types of Information

In this research qualitative information are collected from previous literature review and use
this qualitative information to analyze the triggering factors to measure the comparative
effectiveness of online advertising versus traditional advertising for similar products. The
questionnaire is designed based on qualitative nature question and then the response is
converted to quantitative form for doing factor analysis.
5.3 Sources of Data
Both primary & secondary data have been used in this research.

Primary Data

A structured questionnaire is used as the research instrument to collect primary data about
factors affecting traditional and online advertising of toothpaste industries. The data for this
study is collected through photocopy of the questionnaire by hand delivering to some
participants and most of the data was collected via internet by sending Google docs survey
form to the participants using social networking sites like Facebook and Yahoo.

Secondary Data

Secondary data have been collected through literature review & other available secondary
sources. In addition, several journal papers, articles and reference books are used for secondary
information.

5.4 Method of Data Collection

Online Survey method is used for collecting the data. Survey is a method of gathering
information from a sample of people, traditionally with the intention of generalizing the results
to a larger population. Surveys provide a critical source of data and insights for nearly everyone
engaged in the information economy, from businesses and the media to government and
academics. In this research questionnaire is used for doing survey.

5.5 Scaling Techniques & Questionnaire Design

The questionnaire has been designed through multiple-choice-question & short question. A
five point Likert scale was used in the questionnaire to determine the significance level of
different success factors. Effective advertisement measurement instruments or scales like have
been considered & critically evaluated in this study to find the best suitable measures or scales
to measure the comparative effectiveness of online & traditional advertising for similar
products.
5.6 sampling design
5.6.1 Target Population

A particular group of people that is identified as the intended recipient of an advertisement,

product, or campaign. Also called target audience. In this research the target population are the
recipient of online and traditional advertisement.

5.6.2 Sampling Frame

A sampling frame is the source material or device from which a sample is drawn. It is a list of
all those within a population who can be sampled, and may include individuals, households or
institutions. In this research sample is drawn from student, service holder, teacher, private job
holder and public job holder.

5.6.3 Sampling Technique

Convenience sampling is used for this research. Convenience sampling is a statistical method
of drawing representative data by selecting people because of the ease of their volunteering or
selecting units because of their availability or easy access. This research was done by
questionnaire survey from various participants as they were willing to volunteer for this and
the survey form was also quite easy for their access.

5.6.4 Sampling Size

To get practical results and ease of data collection a sample was selected which represents the
entire population. According to Lavrakas, P.J. (2008) the sample size of a survey most typically
refers to the number of units that were chosen from which data were gathered. There is the
designated sample size, which is the number of sample units selected for contact or data
collection. There is also the final sample size, which is the number of completed interviews or
units for which data are actually collected. For this research paper, sample size is 182 people.
5.7 Methods & Techniques Used for Data Analysis
Software used for Analysis

For analyzing the survey data, IBM SPSS was used to calculate the mean and conduct a factor
analysis.

Statistical Analysis

After the data collection from the respondents, the whole excel file was rechecked whether any
point is missing or not. The answers provided by respondents are kept confidential, and the
data are used only for the purpose of the research paper. Data analysis commenced after the
data have been collected and processed fully.

Originally, the data used for this research was qualitative. Then for statistical testing purpose
data was converted to quantitative form. For quantitative analysis, Microsoft Excel and
statistical software SPSS was used for the input of data and analysis to get an expected result.
Five tests are run in SPSS to see the results and strengthen the hypothesis of this research paper.
These are:

 Factor Analysis: Factor analysis is a collection of methods used to examine how

underlying constructs influence the responses on a number of measured variables. This
analysis is used to see the factors affecting restaurant business’s success.
 Pearson Correlation Coefficients: Correlation between sets of data is a measure of how
well they are related. The most common measure of correlation in stats is the Pearson
Correlation. Pearson correlation coefficients is a measure of the linear correlation between
two variables X and Y, giving a value between +1 and −1 inclusive, where 1 is total
positive correlation, 0 is no correlation, and −1 is total negative correlation.
 Reliability Test: Reliability test refers to the consistency of scores students would receive
on alternate forms of the same test (Wollock.J.A, 2003). The aim is to check whether the
data are reliable enough to conduct further tests.
 CHAPTER 6.0 DATA ANALYSIS

6.1 Descriptive Statistics

Descriptive statistics are numbers that are used to summarize and describe data. The word
“data” refers to the information that has been collected from an experiment, a survey, a
historical record, etc. Descriptive statistics are just descriptive. They do not involve
generalizing beyond the data at hand (Hebl, M., 1999). According to Mann, Prem S. (1995)
Descriptive statistics is the discipline of quantitatively describing the main features of a
collection of information.

Respondent’s Demographic Profile

Based on any research from the given market, the objective of every business is to provide
customers with products and services that fulfill their needs and wants. Through research with
a list of demographics statistics, characteristics and qualities represent ideal target market.
Demographic information helps to identify target consumers more precisely based on variables
such as age, gender family size, income, occupation, education, religion, race and nationality
etc.

 Gender:
For this study purpose targeted respondents are mostly advertisement viewing people and who
are aware of their toothpaste consumption. The researcher targeted for 182 responses and the
respondents filled up the questionnaire form. So the collected figure is 182 respondents
consisting of male and female. 73%% male filled up the form and 27% female respondents
gave their responses.

Gender

27%

Male
Female
73%
 Figure 1: Respondents’ Gender

There is a total respondent of 182 who participated in the questionnaire survey. The result of
gender analysis consists of 133 male and 49 female participants. Percentage of male is 73%,
whereas female is 27%, difference between genders is 46%.

 Age:
For 182 respondents the age limit is categorized into three sections: 20-24 years, 25-29 years
and 30-34 years. As the researcher aimed for collecting data from each types so the age limit
wag made such a way.

AGE
103

43
36

no.

20-24 years 25-29 years 30-34 years

Figure 2: Respondents’ Age

From the above figure 2 we can see that, there are 103 participants are within 20-24 years
(which is biggest among four categorizes), 43 participants are within 24-29 years and lastly
only 36 participants are in between 30-34 years old.

 Occupation
To know respondents’ occupation is necessary, as to know the factors influencing customers
to go to restaurant, their occupation is also needed to know. There are five types of occupations
are listed for the questionnaire survey- student, service holder, teacher, private job holder and
public job holder.
 Occupation
7%
6%
student
10%
service holder
11% teacher
66%
private job holder
public job holder

Figure 3: Respondents’ Occupation

From the questionnaire survey 121 (66%) are students, 20 (11%) participants are service
holder, 19(10%) of them are teacher, 10 (6%) are private job holder and 12 (7%) are involved
in public job holder.
6.2 FACTOR ANALYSIS

Reyment and Joreskog (1993) stated, Factor analysis is a generic term that we use to describe
a number of methods designed to analyze interrelationships within a set of variables or objects
[resulting in] the construction of a few hypothetical variables (or objects), called factors.
Cureton and D'Agostino (1983) described factor analysis as "a collection of procedures for
analyzing the relations among a set of random variables observed or counted or measured for
each individual of a group".

KMO and Bartlett's Test

In data accuracy test, KMO and Bartlett’s test has been used here. The Kaiser-Meyer-Olkin
(KMO) measures of sampling adequacy is an index used to examine the appropriateness of
factor analysis. High values indicate factor analysis. Usually at least 0.5 is desired for carrying
factor analysis. For this study, level of significance is taken as 5%. The SPSS output is as
follows-

Table 1: KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .620
Bartlett's Test of Sphericity Approx. Chi-Square 3113.179
df 120

Sig. .000

The value of KMO Measure of Sampling Adequacy should be more than 0.5. If it is more than
0.5 which indicate that data is sufficient. Since from the above table we can see that the value
of the Kaiser-Meyer- Olkin Measure of Sampling Adequacy is 0.620 which is above 0.5. So,
it can be said that here the data is sufficient.
Bartlett's test is another indication of the strength of the relationship among variables. This tests
the null hypothesis that the correlation matrix is an identity matrix. From the same table, we
can see that the Bartlett's test of sphericity is significant. That is, its associated probability is
less than 0.05. In fact, it is actually 0.000, i.e. the no significance level rejects the null
hypothesis. This means that correlation matrix is not an identity matrix.
Communalities

Communality of each statement refers to the variance being shared or common by other
statements. From the table 2, it can be seen that the communality for each variable, V1 to V16
is 1..

Table 2: Communalities
Initial Extraction

ONLINE ADVERTISEMENT CAN BE SEEN SEVERAL TIMES 1.000 .712

IF WISHED
ONLINE ADVERTISEMENT CAN BE EASILY IGNORED 1.000 .788
MONEY ISN’T NEEDED TO ENJOY A TRADITIONAL 1.000 .719
ADVERTISEMENT
ONLINE VIDEO ADVERTISEMENT BUFFERING IS 1.000 .462
EXTREMELY IRRITATING
VERY EASY TO ACCESS THE ONLINE ADVERTISEMENT 1.000 .800

ONLINE ADVERTISEMENT IS DIRECTED TO THE 1.000 .697

PURCHASE LINK
ONLINE ADVERTISEMENT CAN BE SHARED 1.000 .835
ONLINE ADVERTISEMENT IS INSTANTLY INTERACTIVE 1.000 .481

TRADITIONAL ADVERTISING ADVERTISES OUR LOCAL 1.000 .621

PRODUCT
QUERIES ARE WELL ANSWERED IN CASE OF ONLINE 1.000 .835
ADVERTISEMENT
FEEDBACKS ARE EVALUATED ALWAYS IN CASE OF 1.000 .885
ONLINE ADVERTISEMENT
TRADITIONAL ADVERTISING IS EASY TO RECALL 1.000 .889

ALL TYPES OF ONLINE ADVERTISEMENT IN ONE 1.000 .642

CHANNEL
TRADITIONAL ADVERTISEMENT IS EASY TO 1.000 .931
UNDERSTAND
SAME ONLINE ADVERTISEMENT IN DIFFERENT FORMS 1.000 .904

ONLINE ADVERTISEMENT CAN BE CARRIED 1.000 .914

Extraction Method: Principal Component Analysis.

Total Variance Explained

Which variables value are more than 1, the variables are called factors.

From table 3, we find 4 factors which value are more than 1. We can see that first 4 (four)
variables have cumulative variance of 75.712. According to the determination based on
percentage of variance procedure, extracted factors should have at least 60 percent of total
variance. Here, the cumulative variance of the 4 factors are 75.712 which is more than 60%
which defines that the model is good. As the research objective is to extract factors and
minimize the number of it, from now it can be assumed that we got 4 factor.

Table 3: Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %

1 7.522 47.011 47.011 7.522 47.011 47.011

2 2.047 12.793 59.804 2.047 12.793 59.804

3 1.400 8.751 68.555 1.400 8.751 68.555

4 1.145 7.157 75.712 1.145 7.157 75.712

5 .972 6.078 81.790

6 .899 5.618 87.408

7 .539 3.367 90.775

8 .485 3.033 93.809

9 .334 2.089 95.898

10 .273 1.705 97.604

11 .162 1.009 98.613

12 .079 .496 99.110

13 .059 .370 99.479

14 .046 .287 99.766

15 .019 .122 99.888

16 .018 .112 100.000

Extraction Method: Principal Component Analysis.

Scree plot
A scree plot shows the eigenvalues on the y-axis and the number of factors on the x-axis. It
always displays a downward curve. The point where the slope of the curve is clearly leveling
off (the “elbow) indicates the number of factors that should be generated by the analysis. Here
the four factors are above the cutoff point 1. Other factors are below the cutoff point 1. So four
factors are opened here.
 Figure 1: Scree plot

Component Matrix
Table 4 reports the factor loadings for each variable on the unrotated components or factors. Each
number represents the correlation between the item and the unrotated factor. Because these are
correlations, possible values range from -1 to +1. This correlation helps to formulate an interpretation
of the factors or components. It is possible to see items with large loadings (more than the required level
0.30) on several of the unrotated factors, which makes interpretation difficult. In these cases, it can be
helpful to examine a rotated solution.
 Table 4: component matrixa
Component
1 2 3 4
Traditional advertising is easy to recall .899

Online advertisement can be shared .869

Online advertisement is directed to the purchase link .756

Online advertisement can be seen several times if .745 .360

wished
Queries are well answered in case of online .734 -.542
advertisement
Money isn’t needed to enjoy a traditional advertisement .729 -.348

Online advertisement can be easily ignored .720 .344 -.348

Very easy to access the online advertisement .703 .520

Same online advertisement in different forms .697 -.349 .465

Feedbacks are evaluated always in case of online .666 -.520 .414

advertisement

Online video advertisement buffering is extremely .620

irritating
Traditional advertising advertises our local product .599 -.498

Traditional advertisement is easy to understand .570 -.339 -.498 .493

All types of online advertisement in one channel .554 .382 .413

Online advertisement is instantly interactive .497 -.364

Online advertisement can be carried .444 .547 .423 .489

Extraction method: principal component analysis.

A. 4 components extracted.
Rotated Component Matrix

Table 5: rotated component matrixa

Component
1 2 3 4
Feedbacks are evaluated always in case of online advertisement .920

Queries are well answered in case of online advertisement .803 .348

Very easy to access the online advertisement .758 .411

Online advertisement is directed to the purchase link .732

Traditional advertising advertises our local product .656 .382

Traditional advertising is easy to recall .654 .593 .329

Online advertisement can be easily ignored .848
Money isn’t needed to enjoy a traditional advertisement .786

Online advertisement can be seen several times if wished .708 .325

Online advertisement is instantly interactive .686

Online advertisement can be shared .351 .653 .461

Traditional advertisement is easy to understand .336 .901

Same online advertisement in different forms .382 .765 .414

Online video advertisement buffering is extremely irritating .415 .466

Online advertisement can be carried .938

All types of online advertisement in one channel .312 .704

Extraction method: principal component analysis.

rotation method: varimax with kaiser normalization.
A. Rotation converged in 8 iterations.

The rotated factor matrix (table 5) makes it simple for taking decision. Factor 1 has deep
relationship with variable 1-6, 11 and 12; factor 2 has relationship with 6-11, 13, 14 and 16;
factor 3 has relationship with 2, 5, 6, 12, 13 and 14; factor 4 has relationship with 3, 9, 11, 13,
15 and 16. The highest loading of each variable is categorized under each factor.

Reproduced Correlations
In output, SPSS has represented a Reproduced Correlations as presented on table A1 of
appendix part, it is seen that: a. Reproduced communalities b. Residuals are computed between
observed and reproduced correlations. There are 58(48.0%) non-redundant residuals with
absolute values greater than 0.05. If the value is more than 50%, then it will be verified that the
model is fit. That table shows that the non-redundant residuals with absolute values greater
than .05 (50%) are 48% which is fit.

Anti-Image Matrices
Anti-Image Matrices is shown that the anti-image correlations between the variables are
satisfactory. Anti-image matrices are used to examine if there are any data insufficiency in
filling the questionnaire and any specific answer pattern in answering the questions. If the
Values greater than 0.5, it indicates that everything is good and significant. The table A2 of
appendix part has values in all variables more than 0.5. Therefore, this research has passed the
test of anti-image correlations. Here, no variables value is more than (a) values, so the variables
are good which ensures good data quality.

6.2 RELIABILITY TEST

Reliability test is important to see whether the gathered data is consistent enough to do further
tests. According to Cronbach, L.J (1947), the concept of test reliability is examined in terms of
general, group, and specific factors among the items, and the stability of scores in these factors
from trial to trial. Cronbach's alpha is a measure of internal consistency, that is, how closely
related a set of items are as a group. It is considered to be a measure of scale reliability.

Table 6: Case Processing Summary

N %
Cases Valid 172 94.5
a
Excluded 10 5.5
Total 182 100.0
a. Listwise deletion based on all variables in the procedure.

Table 6 shows, valid cases are 172 and an excluded variable is 10.
 Table 7: Reliability Statistics

Cronbach's Alpha Based on

Cronbach's Alpha Standardized Items N of Items
.917 .921 16

Here, the reliability test of 16 items yields Cronbach’s alpha score of .917, suggesting that
items have relatively high internal consistency. (A reliability coefficient of .70 or higher is
considered “acceptable”).
 CHAPTER 7.0 CONCLUSION

7.1 FINDINGS

The idea of rotation is to reduce the number of variables on which the variables under
investigation have high loadings. By listing the variables under the respective factor, we see:

Factor 1 Factor 2 Factor 3 Factor 4

Feedbacks are Online Traditional Online

evaluated always in advertisement can be advertisement is easy advertisement can
case of online easily ignored to understand be carried
advertisement
Queries are well Money isn’t needed Same online All types of online
answered in case of to enjoy a traditional advertisement in advertisement in
online advertisement advertisement different forms one channel
Very easy to access the Online
online advertisement advertisement can be
seen several times if
wished
Online advertisement Online
is directed to the advertisement is
purchase link instantly interactive
Traditional Online
advertising advertises advertisement can be
our local product shared
Traditional advertising Traditional
is easy to recall advertising is easy to
recall

Data reduction is the main objective of factor analysis. On the basis of Table 4 we found four
components, for our 16 variables. Based on the item loadings, these factors were respectively
labeled as

1. The “Customer Engagement” factor explains the 1st component.

2. The factor “” explains the 2nd component.
3. The factor “” explains the 3th component
4. The factor “” explains the 4th component
 TABLE 4: ANTI-IMAGE MATRICES
A1 A2 A3 A4 A5 A6 A7 A8 A9
ANTI-IMAGE A1 0.108 -0.049 0.032 0.048 -0.022 0.014 -0.031 0.094 0.003
COVARIANCE A2 -0.049 0.111 -0.07 -0.085 0.01 0.009 0.02 -0.095 0.01
A3 0.032 -0.07 0.088 0.058 0.013 -0.031 -0.018 0.073 0.018
A4 0.048 -0.085 0.058 0.117 -0.044 0.024 -0.036 0.106 -0.036
A5 -0.022 0.01 0.013 -0.044 0.077 -0.062 0.029 -0.018 0.057
A6 0.014 0.009 -0.031 0.024 -0.062 0.116 -0.04 0.008 -0.093
A7 -0.031 0.02 -0.018 -0.036 0.029 -0.04 0.054 -0.05 0.055
A8 0.094 -0.095 0.073 0.106 -0.018 0.008 -0.05 0.28 -0.031
A9 0.003 0.01 0.018 -0.036 0.057 -0.093 0.055 -0.031 0.185
B1 0.017 -0.032 0.035 0.042 -0.02 0.022 -0.045 0.046 -0.051
B2 0.014 -0.011 0.001 0.043 -0.06 0.002 -0.002 0.016 -0.003
B3 -0.031 0.036 -0.05 -0.04 -0.011 0.017 0.002 -0.062 -0.027
B4 0.017 -0.055 0.011 0.062 -0.019 0.052 -0.008 0.068 -0.064
B5 0.03 -0.003 0.008 -0.011 0.034 -0.023 0.022 0.04 0.036
B6 -0.051 0.018 -0.015 -0.012 -0.011 0.009 -0.008 -0.06 -0.027
B7 0.056 0.002 0.017 0.006 -0.02 0.003 -0.046 0.049 5.32E-05
ANTI-IMAGE A1 .637a -0.45 0.324 0.431 -0.243 0.126 -0.401 0.541 0.019
CORRELATION A2 -0.45 .603a -0.704 -0.747 0.108 0.083 0.259 -0.537 0.07
A3 0.324 -0.704 .602a 0.573 0.162 -0.307 -0.263 0.462 0.142
A4 0.431 -0.747 0.573 .464a -0.458 0.205 -0.454 0.585 -0.247
A5 -0.243 0.108 0.162 -0.458 .627a -0.651 0.451 -0.125 0.479
A6 0.126 0.083 -0.307 0.205 -0.651 .700a -0.498 0.045 -0.635
A7 -0.401 0.259 -0.263 -0.454 0.451 -0.498 .669a -0.405 0.548
A8 0.541 -0.537 0.462 0.585 -0.125 0.045 -0.405 .416a -0.137
A9 0.019 0.07 0.142 -0.247 0.479 -0.635 0.548 -0.137 .599a
B1 0.202 -0.368 0.461 0.473 -0.274 0.255 -0.751 0.334 -0.46
B2 0.119 -0.093 0.009 0.345 -0.601 0.019 -0.028 0.084 -0.02
B3 -0.437 0.51 -0.78 -0.543 -0.179 0.236 0.049 -0.544 -0.291
B4 0.129 -0.42 0.098 0.46 -0.169 0.387 -0.086 0.324 -0.376
B5 0.364 -0.037 0.11 -0.129 0.481 -0.264 0.382 0.3 0.329
B6 -0.667 0.23 -0.221 -0.157 -0.176 0.117 -0.153 -0.49 -0.271
B7 0.445 0.014 0.149 0.045 -0.188 0.023 -0.52 0.242 0

Here,
A1 Online advertisement can be seen several times if wished
A2 Online advertisement can be easily ignored
A3 Money isn’t needed to enjoy a traditional advertisement
A4 Online vedio advertisement buffering is extremely irritating
A5 Very easy to access the online advertisement
A6 Online advertisement is directed to the purchase link
A7 Online advertisement can be shared
A8 Online advertisement is instantly interactive
A9 Traditional advertising advertises our local product
B1 Queries are well answered in case of online advertisement
B2 Feedbacks are evaluated always in case of online advertisement
B3 Traditional advertising is easy to recall
B4 All types of online advertisement in one channel
B5 Traditional advertisement is easy to understand
B6 Same online advertisement in different forms
B7 Online advertisement can be carried
A1 Online advertisement can be seen several times if wished
A2 Online advertisement can be easily ignored
A3 Money isn’t needed to enjoy a traditional advertisement
A4 Online vedio advertisement buffering is extremely irritating
A5 Very easy to access the online advertisement
A6 Online advertisement is directed to the purchase link
A7 Online advertisement can be shared
A8 Online advertisement is instantly interactive
A9 Traditional advertising advertises our local product
B1 Queries are well answered in case of online advertisement
B2 Feedbacks are evaluated always in case of online advertisement
B3 Traditional advertising is easy to recall
B4 All types of online advertisement in one channel
B5 Traditional advertisement is easy to understand
B6 Same online advertisement in different forms
B7 Online advertisement can be carried