1.1 Introduction To Internet Advertising

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CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION TO INTERNET ADVERTISING
The Internet as a marketing medium offers many unique challenges to

marketers. To assist marketers in their venture on-line, comparisons and contrasts
to existing marketing theory have been used to build a conceptual understanding of
the current state of the Internet and its implications for consumer transactions. To
further understand the commercial possibilities of the Internet, several internet
usage surveys have been conducted to document consumers’ behavior online. Yet,
in terms of assessing the commercial effectiveness of the Internet and the value of
Internet advertising, most research has concentrated upon the company’s rather
than consumers’ point of view. As a result, many decisions regarding Internet
advertising (IA) are being made with relatively little specific knowledge about
consumers’ attitudes toward IA and how the structure of these IA attitudes compare
to the structure of attitudes toward advertising in traditional media. The aim of the
current research is to examine consumers’ perceptions and judgments of IA.
Consumers’ attitudes toward advertising have been considered important to

track because they likely influence consumers’ exposure, attention, and reaction to
individual ads through a variety of cognitive and affective processes. One
fundamental difference between Internet and traditional advertising is the degree to
which the consumer versus the company has control over advertising exposure.
With traditional advertising, consumers play a relatively inactive role in exposure.
Advertisements interrupt or intercept consumers’ attention to other information
(e.g., a television program, a radio show, or traffic signs). In essence,
advertisements are “pushed” at them. With many forms of IA, however, the
consumer has a great deal of control over advertising exposure. The company may
request the consumers’ attention (e.g., through banner ads on others’ Web sites or
through hyperlinks), but it is up to the consumer to seek additional commercial
content. Consumers can select whether, when, and how much commercial content
they wish to view. That is, consumers “pull” for electronic advertising content.
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Because IA exposure is largely under the consumer’s volition, it is particularly

important to understand the valence and structure of one important driver of
advertising exposure: attitudes toward IA.
1.2 NEED FOR THE STUDY
Understanding consumer behavior and “knowing customers” are never simple.

Customers may say one thing but do another. They may not be in touch with their
deeper motivation. They may respond to influences that change their mind at the
last minute. The major propose of this study to understand the key influencing
factors and impact level of internet advertising on buyer’s buying decisions.
1.3 OBJECTIVE OF THE STUDY
The primary objective of the study to find out how much impact is really the internet
Advertising having on individual buying behaviours.
The other objectives are
 To understand the Internet User’s Attitude towards Internet advertising.

 To understand Internet Ads dimensions underlie in Internet Advertising.
 To understand level of implication of Internet Ads towards Internet User’s
attitude.
1.4 SCOPE OF STUDY

Many have speculated about the current state of Internet advertising, how it
compares to advertising in general, and its implications for traditional marketing
models and practices. Although many estimates exist regarding who uses the
Internet as well as guidelines about how best to design IA, little is known about
Internet users’ attitudes toward IA, much less what characterizes these attitudes. To
test this, a l sample of over 200 participants with at least some exposure to the
Internet was surveyed. The results revealed no majority opinion of IA: approximately
a third of respondents liked, disliked, and felt neutrally toward IA, respectively. A
regression analysis indicated that enjoyment of looking at Internet advertisements,
its informativeness, and its utility for making behavioral (purchasing) decisions.
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1.5 LIMITATION OF THE STUDY

 The study is conducted only in select part of Chennai and hence may not be
entirely representative of the entire population of the Chennai.
 The total sample size of 50 working peoples and 50 students are determined.
Taking time and cost into consideration and no scientific method was used in
arriving at it.
CHAPTER 2
REVIEW OF LITERATURE
2.1 WHAT IS INTERNET ADVERTISING

According to consumers, IA includes many forms of commercial content—from
electronic advertisements that are similar to traditional advertisements to formats
that are different from traditional advertisements, such as corporate Web sites.
Thus, it appears that there are idiosyncratic differences in consumers’ perceptions
of what constitutes IA such that any specific definition of IA is likely to be a bad fit
for measuring IA perceptions. Because the goal of the present research is to assess
consumer perceptions of IA, IA is described broadly as any form of commercial
content available on the Internet that is designed by businesses to inform
consumers about a product or service. Hence, IA can be delivered via any channel
(e.g., video clip, print or audio), in any form (e.g., an e-mail message or an
interactive game), and provide information at any degree of depth (e.g., a corporate
logo or an official Web site).
2.2 BACKGROUND ON INTERNET ADVERTISING
Despite the limited understanding of how consumers judge IA, there has been
substantial commercial growth on the Internet of many forms of advertising, In
addition to anticipating the monetary growth of the Internet, the majority of on-line
businesses believe the Internet is here to stay and will generate sales in the future.
Furthermore, the adoption curve for the Internet is quite steep, especially in
comparison to other media introduced in this century (radio, television, cable;
Morgan Stanley Technology research cited in Internet Advertising Bureau, 1997).
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Thus, as many have predicted, investment in IA is likely to escalate into the billions
as we enter the next millennium. Studies of consumers’ reactions to IA typically
have quantified customers’ judgments of Web sites in terms of consumers’
behavioral traces at the site (i.e., counting the number of “clicks” and “hits”. These
measures have been shown to both overestimate and underestimate the number of
visitors and exposures, however. Moreover, the indirect nature of these methods
makes it difficult to ascertain the meaning behind the results (e.g., whether clicking
on a link were an accident or intended behaviour and whether the loaded site
satisfied the consumer’s expectations). Coinciding with the growth in IA, there has
been a plethora of guidelines about how to best reach and persuade the consumer
market with the Internet. Many of these recommendations have been based upon
assumptions (rather than actual assessments) of how consumers react to Internet
Ads relative to General Ads. Relatively little is known about how consumers judge
Internet advertising and which components make up these attitudes.
2.3 ATTITUDES TOWARDS ADVERTISING IN GENERAL
The studies on advertising attitudes have varied widely in the types of samples used
and the data collection methods employed, they have focused upon many of the
same dimensions of judgment. Respondents typically have been asked not only
about their overall attitudes toward advertisements but also their perceptions of
advertising’s trustworthiness, offensiveness, informativeness, entertainment value,
and effect on product prices and value, as well as attitudes toward regulatory
issues.
Early surveys of advertising attitudes yielded somewhat favorable, albeit mixed,

results. Found that a majority of their respondents generally liked advertising and
that most of those respondents liked it because they felt it was informative. They
also found that a majority of respondents preferred advertised products over
unadvertised products, although most also felt that advertising increased the cost of
things they buy. People held favorable attitudes toward advertising than
unfavorable attitudes and that a majority of respondents felt advertising was
essential. Still, a majority of their respondents felt that advertisements were
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misleading and that they resulted in higher prices and argued that, beginning in the
1970s, attitudes toward advertising were becoming increasingly negative
2.4 CONSUMER RESPONSE TO INTERNET ADVERTISING
Most of the direct-response measures administered to consumers have assessed

consumers’ perceptions and usage of the Internet and its services. Yet, relatively
less is known about consumers’ evaluations of IA specifically. In an important
exception assessed Internet user’s attitudes toward advertising on newsgroups and
through e-mail. Consumers held negative attitudes toward newsgroup and e-mail
advertising, even when the message was directly relevant to the special interests of
the group. However, their sample was limited to those who posted messages to the
group. Those who merely read messages were not included in the sample.
As a result, it is possible that these unfavorable attitudes are due to this vocal
sample’s perception that they are competing with electronic advertisements for the
group’s attention. In addition, attitudes toward newsgroup/ e-mail advertising may
not generalize to all forms of IA, including less intrusive ads. Consequently, it is
unclear whether the results would generalize to the entire Internet population’s
attitudes toward IA in its many forms. Web advertising to be generally informative
and entertaining, although more informative than entertaining.
For instance, because it is used primarily as an information- providing medium IA
might elicit attitudes that are mostly comprised of cognitive factors—especially in
comparison with attitudes toward advertising in general. Such variations have
implications for how practitioners alter Internet ads (as opposed to traditional
advertising) in order to improve IA attitudes. Thus, one goal of the present research
is to determine which dimensions underlie and to what degree they explain variance
in attitudes toward IA.
2.5KEY FACTORS OF INTERNET ADVERTISING INFLUENCING THE CONSUMER

BUYING DECESION
 Online advertising facilitates the advertiser to reach an absolutely pinpointed

and targeted audience.
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 Traditional advertising is usually a one-way mechanism there is no way for

customers to act on the information in the advertisements. On the Internet,
however, interested customers can click on a banner, learn more, and
actually make purchase on the spot.
 The Internet as a medium knows no demographic boundaries and gives the
advertiser a huge audience to tap and build brand image if not sell products.
 Internet's interactive nature allows for greater flexibility than traditional
media in the type of information transmitted and the method of transmission.
 Online advertisement can facilitate purchase decision.
 Enhance customer company relationship.
 Protection of environment.
CHAPTER 3
METHODOLGY
3.1 Research Design:
Though the primary objective of the study is to understand how much impact is
really the internet having on individual buying behaviors. Exploratory research
design is applied to the study to portray the characteristics of a group or individual
as a situation. It includes surveys and fact finding enquiries of different kinds. The
purpose of exploratory research is description of the state of affairs as it exists at
present.
A sample design is a definite plan for obtaining a sample from a given
population. It refers to the
technique or the procedure would adopt in selecting items from the sample. Since
the population size is infinite sample size for the study was taken as 100
respondents in which 50 samples were of the working people and 50 samples were
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of the students. Population of study includes all the samples in and around Chennai
cities of Tamil Nadu.
3.2 Sources of Data Collection:
The study consists of the application of both primary and secondary data. Primary
data was collected by administering questionnaire cum interview schedules to
Working peoples and students. The secondary data was collected through websites
and from various journals and magazines.
3.3 Sampling Procedure:
The Sample Type used is Simple Random Sampling.
3.3.1 Simple random sampling
Simple random sampling is the technique in which sample is go drawn that

each and every unit in the population has an equal and independent chance of
being included in the sample. If the unit selected in any draw is not replace in the
population before making the next draw, then it is known as simple random
sampling without replacement and if it is replaced back before making the next
draw, then the sampling plan is called Simple random sampling, with replacement
and is amounts to sampling from an infinite population, even through the population
is finite.
3.3.2 Benefit of Simple random sampling
1. It gives each element in the population an equal probability of getting

into the sample; and all choices are independent of one another
2. It gives each possible combination of equal probability of being chosen.
3.4 Research Instrument:
 A structured Questionnaire was prepared to extract the required data.

 A Structured Questionnaire is chosen because it produces more reliable
results than the unstructured ones.
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3.5 Communication Method:
 The data collection is by “Direct interviewing”.

 This method is chosen because further explanation can be requested, if
desired.
3.6 Tools used for data interpretation
3.6.1 Average Method:

The average method is used for interpretation of data. The formula used
for this is,
No of favorable response
= ---------------------------------- X 100
Total no of respondents
3.6.2 Weight Average Method:

The term weight stands for the relative importance of the different items.
The formula for
computing weighted average is
Weighted average = ΣWi Xi N

Where,
Xi - represents the variable values.
Wi – represents the weights attached to the variable values.
3.6.3 Chi-Square Test
The real world data of a system follow some distribution depending on the
characteristic of the system. After collecting data from the system of interest, the
essential step is to fit the data to the nearest distribution, which represents the
data, more meaning fully for future analysis. Such fitting of data to the nearest
distribution is done using the goodness of fit test. The goodness of fit of a given set
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of data is performed using chi-square test. The combination of hypothesis for this
situation is
H0: The given data follow an assumed distribution
H1: The given data do not follow an assumed distribution
Chi Square Test formula:
Where
Aij = actual frequency in the i-th row, j-th column.

Eij = expected frequency in the i-th row, j-th column.
r = number or rows.
c = number of columns.
Degree of Frequency = (r – 1)*(c – 1)
Chapter 4
Data Analysis and Interpretation
4.1 DEMOGRAPHIC PROFILE OF THE RESPONDENTS:
Table No: 4.1.1

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Table Name: Respondents Age.
S.I No Age (In Yrs) No of Respondents Percentage

1 Below than 20 2 2%
2 20 – 29 78 78 %
3 30 – 39 16 16 %
4 40 – 49 4 4%
5 Greater than 50 0 0%
Total 100 100 %
Inference:
The above table shows that 78% of respondents are under the age group of 20-29,
16% of respondents are under 30-39, 4% of respondents are under 40-49, 2% of
respondents are under Below than 20 age group and 0% are under Greater than 50
group.
Figure No: 4.1.1
Figure Name: Respondents Age.
Table No: 4.1.2

Table Name: Respondents Gender.
S.I No Gender No of Respondents Percentage

1 Male 54 54 %
2 Female 46 46 %
11
Total 100 100 %
Inference:
The above table shows that 54% of respondents are male and remaining 46% of
respondents are female.
Figure No: 4.1.2

Figure Name: Respondents Gender.
Table No: 4.1.3

Table Name: Respondents Educational Background.
No of
S.I No Educational Background Percentage
Respondents
1 Secondary School 0 0%
2 Bachelor Degree 36 36 %
3 Master Degree 60 60 %
12
4 Doctoral Degree 4 4%
5 Others 0 0%
Total 100 100 %
Inference:
The above table shows that 60% of respondents are under Master Degree, 36 % of
respondents are under Bachelor Degree, 4% of respondents are under Doctoral
Degree and 0 % of respondents are under Secondary and Others Category.
Figure No: 4.1.3

Figure Name: Respondents Educational Background.
Table No: 4.1.4

Table Name: Respondents Profession.
No of
S.I No Profession Percentage
Respondents
1 Banking / Finance 12 12 %
2 Advertising / Marketing 8 8%
3 Computer / Electronics 68 68 %
Manufacturing /
4 6 6%
Production
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5 Others 6 6%
Total 100 100 %
Inference:
The above table shows that 68% of respondents are under Computer / Electronics,
12 % of respondents are under Banking / Finance, 8% of respondents are under
Advertising / Marketing and 6 % of respondents are under Manufacturing /
Production and Others Category.
Figure No: 4.1.4

Figure Name: Respondents Profession
Table No: 4.1.5

Table Name: Respondents Income (Per Month).
Income (Per
S.I No No of Respondents Percentage
Month)
Lesser than
1 36 36 %
15000
2 15001 -25000 38 38 %
3 25001 – 35000 12 12 %
4 35001 – 45000 6 6%
5 45001 and Above 8 8%
14
Total 100 100 %
Inference:
The above table shows that 38% of respondents are under 15001 -25000, 36 % of
respondents are under Lesser than 15000, 12% of respondents are under 25001 –
35000, 8 % of respondents are under 45001 and Above and 6% of respondents are
under 35001 – 45000.
Figure No: 4.1.5

Figure Name: Respondents Income (Per Month)
4.2 HOW MUCH IMPACT IS REALLY THE INTERNET HAVING ON INDIVIDUAL

BUYING BEHAVIORS
Table No: 4.2.1
Table Name: Frequency of Transactions.
Frequency of No of
S.I No Percentage
Transactions Respondents
Lesser than once in
1 20 20 %
month
2 1 – 2 times/month 20 20 %
15
3 2 – 5 times/month 32 32 %
4 6 – 9 times/month 16 16 %
5 > 10 times/month 12 12 %
Total 100 100 %
Inference:
The above table shows that 32% of respondents are under 2 – 5 times/month, 20 %
of respondents are under Lesser than once in month and 1 – 2 times/month, 16% of
respondents are under 6 – 9 times/month, 12 % of respondents are under > 10
times/month.
Figure No: 4.2.1

Figure Name: Frequency of Transactions.
Table No: 4.2.2

Table Name: Amount Spent.
No of
S.I No Amount Spent Percentage
Respondents
1 Lesser than 1000 28 28 %
2 1001 – 10000 44 44 %
3 10001 – 20000 12 12 %
4 20001 – 30000 8 8%
16
5 Above than 40000 8 8%

Total 100 100 %
Inference:
The above table shows that 44 % of respondents are under 1001 – 10000, 28 % of
respondents are under Lesser than 1000, 12% of respondents are under 10001 –
20000, 8 % of respondents are under 20001 – 30000 and Above than 40000.
Figure No: 4.2.2

Figure Name: Amount Spent.
Table No: 4.2.3

Table Name: Product or Services Purchased.
Product or Services Category No of Percent

S.I No
Purchased Respondents age
1 E-banking services 28 28 %
2 Household's Items & Books 24 24 %
3 Computer Equipment 24 24 %
4 Food Items 16 16 %
5 Automobile 8 8%
Total 100 100 %
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Inference:
The above table shows that 28% of respondents are under E-banking services, 24 %
of respondents are under Household's Items & Books and Computer Equipment,
16% of respondents are under Food Items, 8 % of respondents are under
Automobile.
Figure No: 4.2.3

Figure Name: Product or Services Purchased.
4.3 INTERNET USERS ATTITUDE TOWARDS INTERNET ADVERTISING
4.3.1 ATTITUDE
Table No: 4.3.1.1
Table Name: You like or dislike advertising
S.I Opinion No of Rating Factors Weighted

No Respondents (Xi) (Wi) Mean(XiWi)
1 Extremely Like 18 5 90
2 Like 52 4 208
3 Neutral 26 3 78
4 Dislike 2 2 4
5 Extremely 2 1 2
Dislike
Total 100 382
18
ΣWiXi
Weighted Average = ---------
N
382
= ---------
100
= 3.82
Inference:
The above table shows that 52 respondents are like the online advertising, 26
respondents are neutral, 18 respondents are extremely like the Internet Advertising,
4 respondents are dislike and extremely dislike the Internet Advertising.
4.3.2 ADVERTISING UTLITIY
Table No: 4.3.2.1
Table Name: Most advertising is informative

1 Strongly Agree 18 5 90
2 Agree 56 4 224
3 Uncertainty 18 3 54
4 Disagree 8 2 16
5 Strongly 0 1 0
Disagree
Total 100 384
19
ΣWiXi
N
384
= ---------
100
= 3.84
Inference:
The above table shows that 56 respondents are agree that most advertising is
informative, 18 respondents are strongly agree and uncertainty, 8 respondents are
disagree with advertising is informative.
Table No: 4.3.2.2
Table Name: I like to look at most advertisements that I am exposed to

2 Agree 62 4 248
4 Disagree 10 2 20
5 Strongly 0 1 0
Disagree
Total 100 372
20
ΣWiXi
N
372
= ---------
100
= 3.72
Inference:
The above table shows that 62 respondents are like to look at most advertisements
that they exposed more, 18 respondents are uncertainty, 10 respondents are
strongly agree and 10 respondents are disagree.
Table No: 4.3.2.3
Table Name: Online Advertising helps you to make your purchase decision.

2 Agree 44 4 176
4 Disagree 16 2 32
5 Strongly 2 1 2
Disagree
Total 100 360
21
ΣWiXi
N
360
= ---------
100
= 3.60
Inference:
The above table shows that 44 respondents are agree that online advertising helps
to make their purchase decisions, 20 respondent are uncertainty, 18 respondents
are strongly agree, 16 respondents are disagree and 2 respondents are strongly
disagree.
Table No: 4.3.2.4
Table Name: Internet Ads informative to make purchase decision.

2 Agree 52 4 208
4 Disagree 14 2 28
5 Strongly 0 1 0
Disagree
Total 100 354
22
ΣWiXi
N
354
= ---------
100
= 3.54
Inference:
The above table shows that 52 respondents are agree that IA information make
impact on their purchase decision, 26 respondents are uncertainty, 14 respondents
are disagree and 8 respondents are strongly agree.
4.3.3 INDIGNITY
Table No: 4.3.3.1
Table Name: Most advertising insults my intelligence.

2 Agree 24 4 96
4 Disagree 32 2 64
5 Strongly 2 1 2
Disagree
Total 100 312
23
ΣWiXi
N
312
= ---------
100
= 3.12
Inference:
The above table shows that 32 respondents are disagree with the statement that
most advertising insults my intelligence, 30 respondents are uncertainty, 24
respondents are agree, 12 respondents are strongly agree and 2 respondents are
strongly disagree.
Table No: 4.3.3.2
Table Name: You feel offended by advertisements

2 Agree 30 4 120
4 Disagree 28 2 56
5 Strongly 0 1 0
Disagree
Total 100 318
24
ΣWiXi
N
318
= ---------
100
= 3.18
Inference:
The above table shows that 34 respondents are uncertainty that they feel offended
by Internet Advertising, 30 respondents are feel agree, 28 respondents are feel
disagree, 8 respondents are strongly agree.
Table No: 4.3.3.3
Table Name: You felt misled by advertisements

2 Agree 22 4 88
4 Disagree 24 2 48
5 Strongly 6 1 6
Disagree
Total 100 302
25
ΣWiXi
N
302
= ---------
100
= 3.02
Inference:
The above table shows that 40 respondents are felt misled by advertisements, 24
respondents are felt disagree, 22 respondents are felt agree, 8 respondents are felt
strongly agree and 6 respondents are felts strongly disagree.
4.3.4 TRUST
Table No: 4.3.4.1
Table Name: You feel you can trust Internet advertising.

2 Agree 36 4 144
4 Disagree 16 2 32
5 Strongly 2 1 2
Disagree
Total 100 340
ΣWiXi
26

N
340
= ---------
100
= 3.40
Inference:
The above table shows that 36 respondents are agree that they can trust internet
advertising, 34 respondents are uncertainty, 16 respondents are disagree with the
statement that they can trust the Internet Ads, 12 respondents are strongly agree
and 2 respondents are strongly disagree.
Table No: 4.3.4.2
Table Name: Comfort to purchase thru web ads

1 Highly comfort 16 5 80
2 Comfort 56 4 224
4 Discomfort 20 2 40
5 Highly 0 1 0
Discomfort
Total 100 368
ΣWiXi
27

N
368
= ---------
100
= 3.68
Inference:
The above table shows that 56 respondents are comfort with purchasing an item
directly through a web address in an advertisement, 20 respondents are discomfort,
16 respondents are highly comfort and 8 respondents are uncertainty.
4.3.5 PRICE PERCEPTION
Table No: 4.3.5.1
Table Name: Cyber advertising results in lower prices

2 Agree 16 4 64
4 Disagree 28 2 56
5 Strongly 4 1 4
Disagree
Total 100 296
28
ΣWiXi
N
296
= ---------
100
= 2.96
Inference:
The above table shows that 44 respondents are uncertainty that cyber advertising
results in lower prices for the products, 28 respondents are disagree, 16
respondents are agree, 8 respondents are strongly agree and 4 respondents are
strongly disagree with the statement.
Table No: 4.3.5.2
Table Name: Money value for the advertised brands products

2 Agree 50 4 200
4 Disagree 14 2 28
5 Strongly 4 1 4
Disagree
Total 100 352
29
ΣWiXi
N
352
= ---------
100
= 3.52
Inference:
The above table shows that 50 respondents are positive going with that they will
usually get better value for their money in advertised brands, 20 respondents are
uncertainty, 14 respondents are disagree, 12 respondents are strongly agree and 4
respondents are strongly disagree with the statement.
Table No: 4.3.5.3
Table Name: Online advertising has effect on the prices of advertised products.


2 Agree 56 4 224
4 Disagree 10 2 20
5 Strongly 0 1 0
Disagree
Total 100 386
30
ΣWiXi
N
386
= ---------
100
= 3.86
Inference:
The above table shows that 56 respondents are accepts that Online advertising has
effect on the prices of advertised products, 20 respondents are strongly agree, 14
respondents are uncertainty, 10 respondents are disagree.
4.3.6 REGULATION
Table No: 4.3.6.1
Table Name: I think the government should put less effort into regulating the
content of advertising I
see

2 Agree 20 4 80
4 Disagree 14 2 28
5 Strongly 2 1 2
Disagree
Total 100 338
31
ΣWiXi
N
338
= ---------
100
= 3.38
Inference:
The above table shows that 46 respondents are uncertainty with the government
should put less effort into regulating the content of advertising, 20 respondents are
agree, 18 respondents are strongly agree, 14 respondents are disagree and 2
Table No: 4.3.6.2
Table Name: Advertising regulation should be done by the advertising industry

through its member associations rather than by the government

2 Agree 30 4 120
4 Disagree 14 2 28
5 Strongly 4 1 4
Disagree
Total 100 340
32
ΣWiXi
N
340
= ---------
100
= 3.40
Inference:
The above table shows that 36 respondents are uncertainty with the Advertising
regulation should be done by the advertising industry through its member
associations rather than by the government, 30 respondents are agree, 16
respondents are strongly agree, 14 respondents are disagree and 4 respondents are
strongly disagree with the statement.
Table No: 4.3.6.3
Table Name: Amount of regulation which the government currently places on

advertising

2 Agree 22 4 88
4 Disagree 14 2 28
5 Strongly 10 1 10
Disagree
Total 100 312
33
ΣWiXi
N
312
= ---------
100
= 3.12
Inference:
The above table shows that 42 respondents are uncertainty with the Amount of
regulation which the government currently places on advertising, 22 respondents
are agree, 14 respondents are disagree, 12 respondents are strongly agree and 10
Table No: 4.3.6.4
Table Name: Online advertising transform consumer marketing in the same way
that general advertising practice four or five decades ago

2 Agree 26 4 104
4 Disagree 12 2 24
5 Strongly 2 1 2
Disagree
Total 100 334
34
ΣWiXi
N
334
= ---------
100
= 3.34
Inference:
The above table shows that 48 respondents are uncertainty with that online
advertising transform consumer marketing in the same way that general advertising
practice four or five decades ago, 26 respondents are agree, 12 respondents are
Strongly agree, 12 respondents are disagree and 2 respondents are strongly
disagree with the statement.
4.5 CHISQUARE ANALYSIS

To analyze how much impact is really the internet advertising having on individual
buying behaviors.
Response Strongly Agr Uncertain Disagre Strongly Total

Agree ee ty e Disagree
Lesser than once/month 6 14 4 6 0 30
1 – 2 times/month 1 9 6 6 0 22
2 – 5 times/month 0 18 6 4 2 30
6 – 9 times/month 1 1 0 0 0 2
35
Greater than 10 4 8 4 0 0 16
time/month
Total 12 50 20 16 2 100
4.5.1 Null Hypothesis: Ho

Internet Advertising really has impact on the individual purchase decisions.
4.5.2 Alternate Hypothesis: H1

Internet Advertising doesn’t have any impact on the individual purchase decisions.
4.5.3 Chi Square Test formula:
where
Aij = actual frequency in the i-th row, j-th column
Eij = expected frequency in the i-th row, j-th column
r = number or rows
c = number of columns
4.5.4 CALCULATION TABLE:
S.I Observed Excepted

No (A) (E) (A - E) (A - E)2 (A - E)2 /E (A - E)2 /E
1 6 3.6 2.4 5.76 1.6 1.6

2 14 15 -1 1 0.066666667 0.07
3 4 6 -2 4 0.666666667 0.67
36
4 6 4.8 1.2 1.44 0.3 0.3

5 0 0 0 0 0 0
6 1 0.34 0.66 0.4356 1.281176471 1.29
7 9 11 -2 4 0.363636364 0.37
8 6 6 0 0 0 0
9 6 3.52 2.48 6.1504 1.747272727 1.75
10 0 0 0 0 0 0
11 0 0 0 0 0 0
12 18 15 3 9 0.6 0.6
13 6 6 0 0 0 0
14 4 4.8 -0.8 0.64 0.133333333 0.14
15 2 0.6 1.4 1.96 3.266666667 3.27
16 1 0.24 0.76 0.5776 2.406666667 2.41
17 1 1 0 0 0 0
18 0 0 0 0 0 0
19 0 0 0 0 0 0
20 0 0 0 0 0 0
21 4 1.92 2.08 4.3264 2.253333333 2.26
22 8 8 0 0 0 0
23 4 3.2 0.8 0.64 0.2 0.2
24 0 0 0 0 0 0
25 0 0 0 0 0 0
Total 14.93
4.5.5 DEGREE OF FREQUENCY:

Degree of Frequency = (r – 1)*(c – 1)
= (5 – 1)*(5-1)
= 16
4.5.6 TABULATED VALUE:
Tabulated Value = 26.300, At D.F 16 and 5% level of Significance.
4.5.7 CALCULATED VALUE:

37
Calculated Value = 14.93
4.5.8 DECISION:
The tabulated value of X2 at 16 level of d.f, 5% is 26.300. The observed value of
X2 is 14.93 less than tabulated value (26.300). Thus accept the H0 and conclude
that Internet Advertising really has impact on the individual purchase decisions.
CHAPTER 5
CONCLUSIONS
5.1 SUMMARY OF FINDINGS
 Among the respondents 78 % of respondents are under the age group of 20

-29 and 0 % of respondents are under the age group of Greater than 50.
38
 Among the respondents 54 % of respondents are male and 46 % of

respondents are female.
 Among the respondents 60 % of respondents are Master degree qualification,

36 % of respondents are Bachelor degree and 4 % of respondents are female.
 Among the respondents 68 % of respondents are computer/Electronics

professional and 6 % of respondents are related to manufacturing/Production.
 Among the respondents 38 % of respondents are in 15001 – 25000 salary

range and 6 % of respondents are in 35001 – 45000 salary range.
 Among the respondents 32 % of respondents are 2 – 5 times frequency of

transaction per month and 12 % of respondents are > 10 time’s frequency of
transaction per month.
 Among the respondents 44 % of respondents are spent almost 1001 to 10000

on online purchasing per month and 8 % of respondents are spent more than
40000.
 Among the respondents 28 % of respondents are render the E-banking

services and 8 % of respondents are purchased automobile products.
 52 respondents like the Internet advertisement and 2 respondents are

extremely dislike the IA.
 56 respondents are agreeing that IA is more informative and 8 respondents

are disagreeing with the statement.
 62 respondents are agreeing that they look more advertisement which

exposed them more and 10 respondents are disagreeing with the statement.
 44 respondents are agreeing that online ads help in their purchase decisions
and 2 respondents are disagreeing with the statement.
 24 respondents are disagreeing with the statement that they misled by IA

and 22 respondents are agree with the statement.
39
 36 respondents are trust the internet Ads and 2 respondents are strongly
disagree.
 56 respondents are comfort with purchasing an item directly through a web

address in an advertisement.
 28 respondents are disagreeing with the statement that cyber ads results in
lowering the price of the product/services and 16 respondents are agreeing
the statement.
 50 respondents agree that they get better value for their money in advertised
brands of product and 4 respondents strongly disagree with the statement.
 26 respondents agree that online advertising transform consumer marketing

in the same way that general advertising practice four or five decades ago.
40
5.2 SUGGESTIONS AND RECOMMENDATIONS
 Indeed, current commercial Web sites appear to include features that would
allow users to benefit from the information richness of the medium while
ignoring those features that would engage the consumer (e.g., role-playing
and interactivity).
 Suggesting that on-line businesses should invest increating sites that

consumers enjoy visiting, just as they invest in creating traditional
advertisements that are enjoyable.
 Internet advertisements should not include more features that have been
found to be entertaining in the mass media (e.g., attractive visuals, humor),
but rather features that have been found to be entertaining on the Internet.
Such features include those unique to the Internet such as interactive product
demonstrations.
 Contributing nearly as much as perceived informativeness to IA attitudes is

the perceived behavioral (purchasing) utility of advertising.
41
5.3 CONCLUSION
A representative sample of Internet users answered questions centering around five

themes in addition to overall attitudes toward IA: (1) advertising utility, (2) feelings
of indignity toward advertising, (3) trust of advertising, (4) advertising’s effect on
product prices and (5) advertising regulation. The results suggest that Internet
users’ perceptions of IA are generally positive. Although Internet users were equally
divided in the favorability of their IA attitudes, over half found IA informative, were
not insulted by IA, and felt confident in using IA for purchase decisions.
Furthermore, of those with experience using IA for purchase decisions, more
appeared to be satisfied than dissatisfied with IA: over 40% believed that products
lived up to the IA promises and that IA lowers product prices (less than 30% of
respondents disagreed).
42
5.4 Questionnaires:
Demographic profile of the respondents:
1. Age (in Yrs)
 Below than 20
 20 – 29.
 30 – 39.
 40 – 49.
 Greater than 50
2. Gender.
 Male.
 Female.
3. Educational Background
 Secondary school
 Bachelor degree.
 Master’s degree.
 Doctoral degree.
43
 Others (please specify)
4. Profession.
 Banking/ Finance
 Advertising/ Marketing
 Computers/ Electronics
 Manufacturing/Production
 Others
5. Income (Per Month).
 Lesser than 15000

 15001 – 25000
 25001 – 35000
 35001 - 45000
 45001 and Above
Objective 1: Primary objective of the study to find out how much impact is really
the internet having on individual buying behaviors.
6. Frequency of transactions with the Internet Retailer in the past twelve

months.
 Lesser than once/month
 1 – 2 times/month
 > 10 times/month
7. Amount spent with the Internet retailer in the past twelve months.
 Lesser than 1000
 1001 - 10000
 10001 – 20000
 20001 - 30000
 Above than 40000
8. Indicate the product/services categories that purchased within the last six
months.
44
 E-banking services
 Household’s items & Books
 Computer equipment
 Foods items
 Auto (Bike & Car etc.)
Objective 2: To understand the Internet User’s Attitude towards online advertising.
Attitude:
9. You like or dislike advertising.

 Extremely like
 Like
 Neutral
 Dislike
 Extremely Dislike
10.Most advertising is informative.

 Strongly Agree
 Agree
 Uncertainty
 Disagree
 Strongly Disagree
11.I like to look at most advertisements that I am exposed to

 Strongly Agree
 Agree
 Uncertainty
 Disagree
12.Online Advertising helps you to make your purchase decision.

 Strongly Agree
 Agree
 Uncertainty
 Disagree
13.Confident do you generally feel using information you see in an ad to make a

purchase decision.
 Strongly Agree
 Agree
45
 Uncertainty
 Disagree
Indignity
14.Most advertising insults my intelligence.

 Strongly Agree
 Agree
 Uncertainty
 Disagree
15.You feel offended by advertisements.

 Strongly Agree
 Agree
 Uncertainty
 Disagree
16.You felt misled by advertisements.

 Disagree
 Neutral
 Agree
 Strongly Agree
Trust
17.You feel you can trust advertising.

 Disagree
 Neutral
 Agree
 Strongly Agree
18.Comfort ability about purchasing an item directly through an web address in

an advertisement.
 Highly Comfort
 Comfort
 Uncertainty
 Discomfort
 Highly Discomfort
Price Perceptions
46
19.Cyber advertising results in lower prices for the products you buy
 Disagree
 Neutral
 Agree
 Strongly Agree
20.I usually get better value for my money in advertised brands of products than
in unadvertised brands
 Strongly Agree
 Agree
 Uncertainty
 Disagree
21.Online advertising has effect on the prices of advertised products.

 Strongly Agree
 Agree
 Uncertainty
 Disagree
Regulation
22.I think the government should put less effort into regulating the content of
advertising I see
 Disagree
 Uncertainty
 Agree
 Strongly Agree
23.Advertising regulation should be done by the advertising industry through its

member associations rather than by the government
 Disagree
 Uncertainty
 Agree
 Strongly Agree
24.Amount of regulation which the government currently places on advertising

 Disagree
 Uncertainty
 Agree
 Strongly Agree
47
Objective 3: Might it transform consumer marketing in the same way that network
television revolutionized consumer culture and commercial practice four or five
decades ago.
25.Online advertising transform consumer marketing in the same way that

network television revolutionized consumer culture and commercial practice
four or five decades ago.
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
48
5.5 REFERENCE
 Gordon, M. E. & De Lima-Turner, K. (forthcoming).Consumer Attitudes Toward

Internet Advertising: A Social Contract Approach. International Marketing
Review.
 GVU (1999). GVU’s WWW User Surveys. http://www.cc.

gatech.edu/gvu/user_surveys.
 Hammonds, K. H. (1997). Who’s Doing What On-Line.

http://www.businessweek.com/1997/18/
b352514.htm.
 Hawkins, D. T. (1994, March). Electronic Advertising: On Online Information

Systems. Online, 26–39. Hoffman, D. L., Kalsbeek, W. D. & Novak, T. P.
(1996).
 Schlosser, A., and Kanfer, A. (1999a). Current advertising on the Internet: The
benefits and usage of mixed-media advertising strategies. In D. Schumann &
E. Thorson (Eds.), Advertising and the World Wide Web. Mahwah, NJ:
Lawrence Erlbaum Associates.

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1.1 Introduction To Internet Advertising

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1.1 INTRODUCTION TO INTERNET ADVERTISING

The Internet as a marketing medium offers many unique challenges to

Consumers’ attitudes toward advertising have been considered important to

Because IA exposure is largely under the consumer’s volition, it is particularly

Understanding consumer behavior and “knowing customers” are never simple.

1.3 OBJECTIVE OF THE STUDY

The other objectives are

 To understand the Internet User’s Attitude towards Internet advertising.

1.4 SCOPE OF STUDY

1.5 LIMITATION OF THE STUDY

2.1 WHAT IS INTERNET ADVERTISING

2.2 BACKGROUND ON INTERNET ADVERTISING

2.3 ATTITUDES TOWARDS ADVERTISING IN GENERAL

Early surveys of advertising attitudes yielded somewhat favorable, albeit mixed,

2.4 CONSUMER RESPONSE TO INTERNET ADVERTISING

Most of the direct-response measures administered to consumers have assessed

2.5KEY FACTORS OF INTERNET ADVERTISING INFLUENCING THE CONSUMER

 Online advertising facilitates the advertiser to reach an absolutely pinpointed

 Traditional advertising is usually a one-way mechanism there is no way for

3.2 Sources of Data Collection:

3.3 Sampling Procedure:

The Sample Type used is Simple Random Sampling.

3.3.1 Simple random sampling

Simple random sampling is the technique in which sample is go drawn that

3.3.2 Benefit of Simple random sampling

1. It gives each element in the population an equal probability of getting

3.4 Research Instrument:

 A structured Questionnaire was prepared to extract the required data.

3.5 Communication Method:

 The data collection is by “Direct interviewing”.

3.6 Tools used for data interpretation

3.6.1 Average Method:

3.6.2 Weight Average Method:

Weighted average = ΣWi Xi N

3.6.3 Chi-Square Test

H0: The given data follow an assumed distribution

H1: The given data do not follow an assumed distribution

Chi Square Test formula:

Aij = actual frequency in the i-th row, j-th column.

Degree of Frequency = (r – 1)*(c – 1)

Table No: 4.1.1

Table Name: Respondents Age.

S.I No Age (In Yrs) No of Respondents Percentage

Table No: 4.1.2

S.I No Gender No of Respondents Percentage

Total 100 100 %

Figure No: 4.1.2

Table No: 4.1.3

Figure No: 4.1.3

Table No: 4.1.4

Figure No: 4.1.4

Table No: 4.1.5

Total 100 100 %

Figure No: 4.1.5

4.2 HOW MUCH IMPACT IS REALLY THE INTERNET HAVING ON INDIVIDUAL

Figure No: 4.2.1

Table No: 4.2.2

5 Above than 40000 8 8%

Figure No: 4.2.2

Table No: 4.2.3

Product or Services Category No of Percent