Professional Documents
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Project Salim
Project Salim
Project Salim
ADVERTISING ON CONSUMER
BEHAVIOUR
By
Mr. Salim Abdullah Abeid
Student number: 2243659
Principal
“Zanzibar College of Business & Management”
Zanzibar, Tanzania
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I hereby declare that this Project Report titled “AN ANALYSIS OF INTERNET
ADVERTISING ON CONSUMER BEHAVIOUR” submitted by me is a bona fide work
under taken by me and it is not submitted to any other University or Institution for
the award of any degree/diploma / certificate or published any time before. The
data collected for this survey is just an estimated data to build the concept on how
the organization works.
Date:
Mr. Salim Abdullah Abeid
Student number: 2243659
This research project has been submitted for examination with my approval as the
Principal of Zanzibar College of Business & Management.
Date:
Mr. Rany Chowdhury
Principal
“Zanzibar College of Business & Management”
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The completion of this study would have been impossible without the material and
moral support from various people. It is my obligation therefore to extend my
gratitude to them. First of all I thank the Almighty God for giving me good health,
and guiding me through the entire course.
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Page No. Topic Sub-Topic
1-2 Cover Page and Declaration
3 Acknowledgement
4-5 Table of contents & Charts
6 Introduction
7 Objective of the study
Research Methodology
Research Design
Population of the Study
8 Data Collection
Validity and Reliability
9 Data Analysis
Internet Advertising
10 The Concept of Internet Advertising
11 Social networks’ utility for companies
11-12 Types of Internet advertisement
Consumer Behaviour
13 The Concept of Consumer Behaviour
Consumers’ Online Brand Related Activities
14 Consumer buying decision process
15 Consumer buying decision and the influence
of Internet
16 Trust in e-commerce
Marketing Communication
& Promotion
17 Integrated Marketing Communication
17-18 The Concept of Promotion
18 The Word of Mouth
19 Data Analysis and
Interpretation
29 Findings of the study
30 Value of the Study
31 Limitations of the study
32 Conclusion
33-34 Questionnaire
35 References
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Chart Page TITLE
No.
1 20 Opinion on internet advertisements
2 21 Checking an online advert
3 22 Mode of advertising influences to buy product
4 23 Influence of advertisement on purchase decision
5 24 Attraction to follow an advertisement
6 25 Spending time on internet
7 26 Disposition towards web advertising
8 27 Change the channel during commercial breaks
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Advertisers are expected to shift and spend millions in internet advertising in the
coming years than TV, print ads and other traditional advertising media. With the
rapid growth in technology, the internet is becoming an important one stop point
for consumers in finding most of their needs. Be it communication, entertainment,
shopping, information search, internet serves as a panacea for all their
requirements. Many consumers are online every day for their personal work, but
do they notice the ads, banners displayed on that webpage, and most important
their recall value.
The study used stratified sampling technique to select 100 study respondents. The
primary data was collected using questionnaires. Content analysis was used to
analyze qualitative data while the quantitative data was analyzed using descriptive
statistics using SPSS. Regression and Correlation analysis was used to show the
relationships among the variables. The data was presented through percentages,
means, standard deviations and frequencies.
The study found that internet advertising was effective on reach and creation of
awareness due to diverse usage, and established that its reliability as an advertising
media was low compared to TV. Internet advertising has significant relationship
with purchase decision of the consumers and therefore is a key determinant in
influencing consumer behaviour. The study determined that there is a positive
relationship between internet advertising and consumer purchase decision and
further recommends that companies should conduct a market research on the
different markets in various countries to ensure that the internet advertising
initiatives being implemented suits the targeted markets to improve product
purchases.
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The purpose of this paper is to understand which are the factors that have an impa-
ct on customer’s acceptance of social network advertising and what influences
them.
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Research Design:
This study used descriptive research. Descriptive research involves gathering data
that describe events and then organizes, tabulates, depicts, and describes the data
collection. It often uses visual aids such as graphs and charts to aid the reader in
understanding the data distribution and therefore offered a better clarification on
online advertising, and ultimately give a clear picture on the effectiveness and
reliability of online advertising and its relationship to purchase decision.
Mshihiri Store has many regular customers and flying customers database. This
study targeted regular customers and few of flying customers of Mshihiri Store.
Sample size: 100 clients
Data Collection:
The research made use of primary data, which was collected using structured ques-
tionnaire distributed to the 100 respondents. The administered questionnaires were
collected after completion by the respondents on the same day and their responses
used for analysis. The questionnaire had both open ended questions to enable guide
the respondent through filling of the questionnaire as well as probe them for more
information.
Content validity refers to the extent to which an instrument represents the factors
under study. To achieve content validity, questionnaires included a variety of que-
stions on the knowledge of clients on internet advertising and consumer behaviour.
All the subjects completed the questionnaires in the presence of the researcher.
This was done to prevent subjects from giving questionnaires to other people to
complete on their behalf.
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collector bias. Data collector bias was minimized by the researcher’s being the on-
ly one to administer the questionnaires, and standardizing conditions such as exhi-
biting similar personal attributes to all respondents, e.g., friendliness and support.
Pilot testing was carried out by the researcher to identify any flaws on the questio-
naire to reduce errors of measurement and test for consistency.
Data Analysis:
The study applied both nominal and ordinal scale to measure a range of factors est-
ablishing the effectiveness of internet advertising on consumer behaviour and an
interval scale in determining the relationship between internet advertising and con-
sumer behaviour. Descriptive statistics was used to analyze this data. The data coll-
ected was compiled and edited to check for logical inconsistencies. The data was
then coded according to the responses. Relationships between responses was asses-
sed and presented using tables and graphs. Regression and Correlation analysis
was applied in this study to reveal relationships among variables in the findings
from the data.
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Consumers within Tanzania have been largely exposed to the traditional advertis-
ing forms as the main media used by advertisers to provide information. However,
over the years marketing strategies have evolved with technology leading to the
internet creating unprecedented opportunities for digital marketers to connect with
customers to create an immersive connected digital environment, influence and dri-
ve purchases, fuel new growth and create new market share. The growth of internet
advertising is both globally and locally outpacing offline advertising. While outdo-
or advertising is also experiencing growth, it is not growing as rapidly as Internet
advertising.
It is on this basis that the study investigated the effectiveness of online advertising
based on a consumer sample from Mshihiri Store to determine the relationship
between advertising and consumer behaviour.
Internet advertising is a form of promotion that uses the Internet and World Wide
Web for the expressed purpose of delivering marketing messages to attract custo-
mers. Examples of online advertising include contextual ads on search engine res-
ults pages, banner ads, Rich Media Ads, Social network advertising, online classif-
ied advertising, advertising networks and e-mail marketing, including e-mail spam.
Online video directories for brands are a good example of interactive advertising.
These directories complement television advertising and allow the viewer to view
the commercials of a number of brands. If the advertiser has opted for a response
feature, the viewer may then choose to visit the brand’s website, or interact with
the advertiser through other touch points such as email, chat or phone. Response to
brand communication is instantaneous, and conversion to business is very high.
This is because in contrast to conventional forms of interruptive advertising, the
viewer has actually chosen to see the commercial.
The number of internet users in Tanzania was estimated at 19.8 million in 2016
according to Ministry of Communication, Science and Technology, Tanzania.
This majority of internet users are youth especially university students, who regul-
arly use the social network sites through their mobile phones, either searching for
information or chatting with friends online. Many Young citizens from Tanzania
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have embraced the evolution in technology, and adopted latest variety of android
products, tablets, ipads, and the popular models of Samsung galaxy for easy access
of the internet. The growth has been fuelled by the implementation of the ICT
policy by the government and the introduction of the fibre optic network offering
fast internet connections.
Research shows that when a customer is looking for certain information related to
a company or a specific product on the web, he relies on social networks as much
as on the company websites: that leads to social network marketing. It is fundame-
ntal for companies to have a consistent presence on the web in order to survive.
Nowadays they can’t afford not to have their own website or social network, the
enormous development of the platforms making it impossible for a brand to ignore
the great spectrum of opportunities enclosed there. Companies have to embrace
this new marketing opportunity and challenge. Companies can participate on the
platforms in different ways: by creating their own page or by communicating
through an already existing community, or by promoting the communication and
interaction with consumers, just like these latter do with their friends and family.
Floating ads: A floating ad is a type of rich media Web advertisement that appears
uninitiated superimposed over a user-requested page, and disappears or becomes
unobtrusive after a specific time period (typically 5-30 seconds). The most basic
floating ads simply appear over the Web page, either full screen or in a smaller
means of escape, such as a close button.
Expanding ads: These are ads that expand when users click on them. The ads do
not expand just from mousing over hyperlinks, which is a technique used by some
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other advertisers. They often take a long time to download, which in turn can neg-
atively impact the visitor's experience on that page. Polite ad formats were develo-
ped to address this challenge by enabling advertisers to serve larger file formats
without disturbing the load time for the rest of the images on the page.
Wallpaper ads: An ad which changes the background of the page being viewed.
Trick Banner: A banner ad that attempts to trick people into clicking, often by
imitating an operating system message.
Pop-up: A new window which opens in front of the current one, displaying an
advertisement, or entire webpage.
Pop-under: Similar to a Pop-Up except that the window is loaded or sent behind
the current window so that the user does not see it until they close one or more
active windows.
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The Concept of
Consumer
Behaviour:
The term "consumer behavior" refers to actions and decisions that factor into a
customer's purchase. Researchers, businesses and marketers study consumer
behavior to understand what influences a consumer's shopping preferences and
selection of products and services. Multiple factors affect consumer behavior,
among them economic status, beliefs and values, culture, personality, age and
education. Findings on consumer behavior are used to develop methods and pr-
oducts that will boost company performance and sales.
Customers are becoming more powerful, more knowledgeable and more sophist-
icated, and research into modern consumer behaviour is increasingly important
for businesses according. Advertising to attract consumers, providing better
environment, product, services and policies is important in improving today’s
consumer experience to support businesses in retaining customers.
With the rapid growth in technology, the internet is becoming an important one
stop point for consumers in finding most of their needs. Be it communication,
entertainment, shopping, information search, internet serves as a panacea for all
their requirements. This has led 70% of the ever users to glue themselves to the
Internet and access it on a regular basis.
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Consumers’ Online Brand Related Activities:
Social networks provide a wide spectrum of opportunities for users to create conte-
nt and share it, obviously including brand related activities: this implies the increa-
sing influence of the consumers, which rely more on each other than on the compa-
nies they follow. When a client is satisfied, he shares his satisfaction with an aver-
age of three people; on the contrary, when he is unhappy with a certain product he
will inform about 15 people, leaving an indelible mark on the Web. If we googled
the name of one of the world’s top ten brands, we would see that 25% of the results
are user generated content.
People calmly and carefully integrate as much information as possible with what
they know about the product, painstakingly weigh the pluses and minuses of each
alternative, and arrive at a satisfactory decision. This process implies that steps in
decision-making should be carefully studies by marketing managers. Buyer
decision processes are the decision-making processes undertaken by consumers in
regard to a potential market transaction before, during, and after the purchase of a
product or service. Decision-making is a process of selection from various alterna-
tives. Examples: shopping, selection of food. However, argues that consumers may
sometimes typically rely on simple strategies, rather than going through a series of
steps or processes rationally when they made purchase decisions. There are 5 stag-
es involved in the consumer decision-making process of which actual purchasing is
only one stage of the process. All consumer decisions do not always include all 5
stages, as it is also determined by the degree of complexity.
Consumer buying decision and the influence of Internet:
Internet is becoming the most popular medium for the marketers to introduce their
goods or services, as this is the most popularly being used source for searching and
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also buying. As new technologies have been coming into the household domain it
is necessary for the marketers to understand the response of the consumers.
Internet has a lot of virtual information that will be provided on the demand of the
consumer. Also they can provide with information about where the products are
available and also can be purchased via Internet. By providing with these kinds of
opportunities the sellers can satisfy the customers through fast distribution via
Internet.
The internet based market is totally different from the traditional market place whe
re the consumers have an on screen interactions instead of face to face interactions
and the internet market takes place on the computers and phones instead of physic-
al stores. It is important to consider because they create a value for building the
relationships with the customers. The Internet acts as an information search med-
ium for the customers in purchasing goods or services.
There are a lot of factors which influence the customer to choose internet shopping
instead of going to the retail store, like: delivery time, shopping time, risks, mail
order, telephone order, demographic factors, socio-economic factors, brand reputa-
tion, source, online feedbacks. Before making strategies to selling the products or
services through the internet the sellers should do a research on the factors which
more influence the traditional consumer and the internet consumer. The factors are
gender, age, experience of the consumer, knowledge, and word of mouth.
Generally older people suffer from physical disabilities because of which some of
them can't move from places to places as a result for these consumers Internet
would be the best option. Also the income levels and free time of the older indivi-
duals than that of young individuals also influence them to shop online. Gender is
also one of the factors which needs to be taken into consideration because based on
a research study by Teo(2001 125:137) it was found that males and men are faster
at using the internet for buying and downloading than women.
Trust in e-commerce:
Trust can be defined as; “the psychological status of involved parties who are
willing to pursue further interaction to achieve a planned goal”, Turban et al.
Trusting someone means to have confidence that the promises made by another
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party will be kept. This statement also implies that there is a certain risk involved,
for both parties, that this trust can be breached. The breach could involve destruct-
tive actions from either party or problems within the e-commerce environment and
infrastructure.
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The Internet has contributed to a greater adoption of integrated marketing commu-
nication (IMC) strategies, by allowing marketers to communicate more directly
with individual consumers. Internet functions become integrated into a company’s
communications mix, which permits the operation of the Internet as an advertising
medium to be incorporated alongside more traditional media types. The application
of the IMC concept involves the progression away from the traditional one-to-
many marketing communication model for mass media to the one-to-one commu-
nication, or many-to-many communication model.
The inclusion of the Internet in the promotional mix will not eliminate the use of
mass media advertising channels such as television, radio, newspapers and magaz-
ines. However, the Internet may reduce the amount of mass media advertising requ
ired. Arguably, this will occur because the personal computer with Internet access
is being utilized frequently by target audience members as an effective communic-
ation channel to make both social exchanges using email and commercial exchan-
ges to purchase products on the web. The advertising industry is being challenged
to create more direct, personal and interactive communication with the target ma-
rket through the use of the Internet.
In large companies, the marketing department has many roles. It determines the pr-
omotional mix, establishes the budget, allocates resources, coordinates the campai-
gn, supervises any outside resources, and measures the results. Manufacturers often
develop a promotional mix for each segment of the distribution channel.
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The Word of Mouth:
Word of mouth, that can also be unrelated to the Internet and social networks, is
the action of speaking and exchanging information between customers: it acts like
a special kind of marketing and has an important influence on the user’s attitude
and perception towards a certain product. The effect of the WOM on the custome-
r’s behaviour is greater than a company’s publicity message, as it comes from a
more trusted source of information, somebody known that has probably already
had an experience with the product or brand: this is why it is often a source that
people rely on. It isn’t necessarily positive and neither it can occur only on social
networks: electronic word of mouth can ensue on many different channels such as
emails, blogs, forums, virtual communities and websites. Social networks as afore-
mentioned have allowed - thanks to their special structure and to the many users
connected - the establishing of stronger relationships between a certain company
and its customers.
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Analysis was done with an attempt to organize and summarizes data, in
order to enhance the efforts of outcome in such a manner that enable to relate
critical points with the study objectives.
CHART – 1
OPINION ON INTERNET ADVERTISEMENTS
CATEGORY RESPONDENTS
Informative 35
Annoying 23
Creates awareness 22
Waste of time 20
10
35
30
25
20
15
10
5
0
Informative Annoying Create Waste of
Awareness time
INTERPRETATION:
Table shows that majority 35% of the respondents said that their attitude towards
web advertising was informative. A total of 23% of the respondents said their
attitude towards web advertising was Annoying, with a closer percentage indicat-
ing creation of awareness. However, 20% of the respondents said their attitude
towards web advertising was waste of time. These findings mean that most of the
respondents had a positive attitude towards advertising as illustrated by their vari-
ous perceptions about the use of advertising. This clearly shows a positive attitude
toward advertising and hence is a good indication for marketers. In order to further
identify the effectiveness of internet advertising onreach and creation of awareness,
the respondents were requested to indicate the amount of time spent on various
platforms of advertising.
CHART – 2
CHECKING AN ONLINE ADVERT
CATEGORY RESPONDENTS
Yes 40
No 60
10
60
50
40
30
20
10
0
Yes No
INTERPRETATION:
CHART –3
MODE OF ADVERTISING INFLUENCES TO BUY
PRODUCT
CATEGORY Respondents
Friends and relatives 45
TV Commercial 25
Online advertisements 10
10 Social Media 20
INTERPRETATION:
The highest number 45% of the respondents were influenced to buy a product
based on information provided by friends and relatives, with TV commercials
being second. Online advertisements were least in influencing their decision at
only 10%. Therefore, friends and relatives were the major influencers behind
decision making. This depicts that traditional form of advertising has an edge over
internet advertising in terms of consumer preference to mode of advertising.
CHART – 4
INFLUENCE OF ADVERTISEMENT ON
PURCHASE DECISION
PARTICULARS RESPONDENTS
Strongly Agree 40
Agree 32
10
Disagree 18
Strongly Disagree 10
Total 100
45
40
35
30
25
20
15
10
5
0
Strongly Agree Disagree Strongly
Agree Disagree
INTERPRETATION:
CHART – 5
ATTRACTION TO FOLLOW AN
ADVERTISEMENT
PARTICULARS RESPONDENTS
The artist 40
10
40
30
The colors 25
20
The design 20
10 The image 15
Total 100
0
The Artis The Colors The Design The image
INTERPRETATION:
Data analysis shows that popular and famous star selection can attract consumer’s
attention and influence their buying behavior. In other hand Colors, design and
Images can attract very less compare to the Artist selection.
CHART – 6
PARTICULARS RESPONDENTS
1hr to 2 hr 07
3hrs to 4hrs 20
4hrs to 5hrs 35
10 Above 5hrs 38
Total 100
INTERPRETATION:
Depending on the above chart, we can understand that many of the respondents are
spending more than 5 hours a day on Internet for their different purpose. It’s clear
that due to the availability of the potential consumers on internet, online advertisi-
ng might be a good option for all the companies to reach their customers. In
current time almost everyone is being online through their smart phone.
CHART – 7
PARTICULARS RESPONDENTS
Positive 70
Negative 30
Total 100
10
70
60
50
40
30
20
10
0
Positive Negative
INTERPRETATION:
Above table shows that majority 70% of the respondents said their disposition
towards web advertising was positive. Very less 30% of the respondents said their
disposition towards web advertising was negative.
CHART – 8
10
PARTICULARS RESPONDENTS
Never 26
Sometimes 20
Depends on ad 43
Every time 11
Total 100
47
46
45
44
43
42
Never Sometimes Depends on Ad Every time
INTERPRETATION:
CHART – 9
Data shows that still the influence of Internet advertising on Consumer’s buying
behavior is very low. Only 15% of the respondents are influenced by Internet
advertising to buy something. In other side word of mouth is taking highest
position to influence consumer buying behavior. Shop display also playing an
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The questionnaire was answered by a total of 100 people, of which 55% are female
and 45% male, with an average age of 30 years.
The study established that the effectiveness of internet advertising on reach and
creation of awareness was determined by the level of knowledge about the existing
platforms of advertisements adopted by Mshihiri Store in Tanzania. Most of the
respondents had a positive attitude towards advertising as illustrated by their vario-
us perceptions about the use of advertising. This clearly shows a positive attitude
toward advertising and hence is a good indication for marketers.
The study concludes that the reliability of internet advertising through recall was
low as only a small percentage of the respondents could recall the online ads they
had seen. The study found that TV ads are much reliable than internet advertising
and other forms of advertising. The study established that friends and relatives
were the major influencers behind decision making. This depicts that traditional
form of advertising has an edge over internet advertising in terms of consumer
preference mode of advertising. Traditional mode got high preferences than that of
internet advertising which is a huge margin.
The study established that internet advertising influenced purchase decision of the
customers to a moderate extent as only nearly half of the respondents were influen-
ced purchase decision. The study established that internet advertising is a key dete-
rminant of purchase decision of the customers. The study also established that
internet advertising has significant relationship with purchase decision of the
consumers.
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The study may benefit Mshihiri Store, Zanzibar and other marketers, businesses,
government and academicians. This study may be able to inform marketers on the
consumer preference of the advertising media and whether using Internet adverting
would be effective in reaching and increasing awareness of the target audience.
Before adapting marketing practices to the Internet, it is imperative to understand
the characteristics of the online customers towards online advertising as would be
revealed by this study.
The study established that the reliability of internet advertising is low and therefore
recommends that the management of companies using internet advertising should
provide unique experience to its customers based on customer analysis to deliver a
personalized experience to the customers. The study also found that internet adver-
tising is effective in reach and creation of awareness and recommends that the
companies should invest more in internet advertising to increase their market share
and provide product information.
Finally, the study determined that there is a positive relationship between internet
advertising and consumer purchase decision and further recommends that compa-
nies should conduct a market research on the different markets in various countries
to ensure that the internet advertising initiatives being implemented suits the targe-
ted markets to improve product purchases.
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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.
Geographical coverage, as only two areas have been taken from Zanzibar,
Tanzania. It is not sure whether the findings will apply to the whole country.
Respondents below 18 years of age were not included in the present study,
as it was assumed that respondents of the age 18 years & above can answer
questions relating to Internet advertising. This is a limitation as respondents
below 18 years also use the Internet and if they had been included in the
sample, their opinion on issues relating to Internet advertising may have
given important insights.
There was scarcity of core textbooks on online advertisement. Thus, the
researcher relied heavily on online text books, publications and researches
Again, the researcher used only the questionnaire as his primary data
collection instrument. This is a limitation as the study can be enriched with
direct personal observation so that findings will be all encompassing.
Finally, the issue of financial and time constraints cannot be overemphasiz-
ed. Essentially, the researcher paid heavily for downloaded material from the
internet at commercial cyber cafes and the short time for carrying out a wide
topic.
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The objective of the study was to determine the effectiveness of internet advertisi-
ng on consumer behaviour using a sample of Mshihiri Store’s client. After anali-
sis of the study findings, the study concludes that the effectiveness of internet adv-
ertising on reach and creation of awareness was determined by the level of knowl-
edge about the existing platforms of advertisements adopted by Mshihiri Store in
Tanzania and time spent on various media. Internet advertising was effective in
providing higher reach and creation of awareness. However, in spite of the diverse
usage of internet and wide interaction with various internet advertisements, fewer
respondents were able to recall the internet ads they had seen.
This implies that the reliability of internet advertising is quite low. The research
established that TV advertising is more reliable than internet advertising. The study
concludes that internet advertising influenced purchase decision of the customers
to a moderate extent as only nearly half of the respondents were influenced purcha-
se decision. However, internet advertising is a key determinant of purchase decisi-
on of the customers as they consider it to be an interaction point between them and
the company from which they buy their products from. The study also concludes
that internet advertising has significant relationship with purchase decision of the
consumers. The study further concludes that internet advertising contributes most
to the consumer behavior and that internet advertising was a significant factor in
predicting the consumer behaviour. In addition, there is a positive relationship bet-
ween consumer behaviour and internet advertising. This implies that companies
should invest more in internet advertising to increase their market share and cond-
uct a market research on the different markets in various countries to ensure that
the internet advertising initiatives being implemented suits the targeted markets to
improve product purchases.
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AN ANALYSIS OF INTERNET ADVERTISING ON CONSUMER BEHAVIOUR
Respondents Profile
Name: Sex:
Age: Phone :
7. On average, how many hours do you spend on the Internet per day?
a) 1hr to 2 hr b) 3hrs to 4hrs
c) 4hrs to 5hrs d) Above 5hrs
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c) Depends on ad d) Every time
DATE: …………………………….
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Websites:
www.google.com
www.ask.com
www.wikipedia.com
www.marketingland.com
www.business.com
www.linkedin.com
www.knowonlineadvertising.com
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