Impact of Online Advertising in The Netizens' Buying Behavior in The Digital Era: An Empirical Study

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Dogo Rangsang Research Journal www.drsrjournal.

com
ISSN : 2347-7180 Vol-10 Issue-06 No. 2 June 2020

Impact of Online Advertising in the Netizens’ buying behavior in


the digital era: An Empirical study
Dr. Umakanta Dash
Professor-Marketing
E-mail: drukdash@yahoo.com
Jyotisman Das Mohapatra
Assistant Professor –Marketing E-mail-jyotisman7381@gmail.com
Srusti Academy of Management, Bhubaneswar
______________________________________________________________________________
Abstract:
In this emerging revolution of digital age the range of Online Advertising is increasing
enormously. It has been acknowledged as a major business function as the attitude towards
advertising has been ever changing at a rapid pace with diversification and dynamism. The goal
of the advertisers is to make their ad more involving and interactive with the customers to initiate
more Click Through Rate (CTR) to gather the information about a product or services and to
increase the conversion ratio. This article makes an attempt to study about the impact of Online
Advertising on buying trends and purchase decision of the netizens. It also explores the major
factors affecting the online advertising with a focus on selling points of this innovative
technique.
Keywords: Online Advertising, Digital, Online Consumers, Netizen, Buying trends.
Introduction
Advertising is the form of communications which bestow upon the customers for making
purchase decisions and also provide the information to the viewers. In the digital era the online
advertising has become the popular medium to promote any products and services and also used
for interacting with the customers.
The evolution of internet provides ample opportunity to the advertiser for reaching millions of
user in a quick interval of time with the help of social media and search engine sites. Online
advertising provides more exposure to the consumer as well as to the advertisers. Due to the
innovative model like Pay Per Click (PPC) and Cost Per Acquisition (CPA) the advertiser can
select how much commercial customers tend to view and its budget accordingly.

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Consumers buying behavior is the study which involves individual or groups to select, purchase,
use and dispose the merchandise, services , ideas or experiences to satisfy the needs and desires
by evaluating various internal and external factors. The buying trends of the netizens in this
present scenario mainly depends upon the online advertisement as they spent ample of times
online for various purposes like chatting, gaming, gaining information, official work etc. The
online advertiser takes these opportunities and uses various types of display ads, bumper ads,
pop-up ads etc. The netizens also gets influenced by those lucrative ads and show keen interest to
gather information about the product and services by clicking on it.
Sometimes the online advertiser use the method of re-marketing to connect with the people who
previously interacted by viewing the advertisements through the websites or mobile apps. It
allows the advertiser to strategically position their ads in front of the audiences as they later on
browse any search engine or partner websites to increase the brand awareness and remind those
audiences to make a purchase.
Literature Review
(Palumbo and Herbig, 1998; Kaye and Medoff, 2001) has defined that the Internet comprises of
globally interconnected computer networks that provide some companies cheap and easily
accessible tools for advertising and interacting with their customers. This is known as online
display advertising
Advertising can be defined as “any paid form of non-personal promotion transmitted through a
mass medium” (Brassington and Pettitt, 2007, p.324), has described in their study about two
components of advertising, one is offline traditional media advertising (TV, radio, magazines,
newspapers and outdoor/other) and other one is online advertising (paid for spaces on a Web site
or e-mail, such as banner ads, skyscraper ads, pop-ups, etc.”
Thorson (2000) has also discussed about various types of online advertisements which are
available online. According to Thorson and Rodgers online advertisements can be in the form of
banner advertisements, pop up advertising, sponsorship, hyperlinks, and websites.
According to Tsang and Tse (2005), online advertising can be an effective tool for the advertiser
if it will be able to gather an immediate response from consumers.
Taylor et al. (2008) on studying the consumer behavior has also mentioned that Consumers get
more attracted when the online advertisements possess some sort of Pictures and images. And in
one of the study Kumar (2008) have explained that Consumers are more attracted when the

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online advertisements should contain less text rather than stuffing large number of keyword and
can be easily understood.
Yoo et al. (2004) has described that online advertisement can be more attractive by using
animation with moving images and graphics enhances the presentation of persuasion messages.
Wise, Bolls, Kim, Venkataraman, and Meyer (2008) jointly discussed that sometimes if the
online advertisements have some features like gaming environment in the form of mini games or
advert games than it can creates its product brand which can fetch detailed virtual experience for
consumers.
Adam (2003) Consumers basically prefers to click on those advertisements which have some
knowledgeable information about the products and services.
(Evans, 2008) Displaying ads are generally on non-search web pages and they can be static,
animated or interactive. Goldfarb and Tucker (2011) argue that this category is ‘hard to ignore’
due to its popularity. The formats of online ads continue to develop to embrace technological
advancement and enabling mechanisms. Animated web ads have been reported as being
disturbing when the Internet users are looking for specific information.
Sathish et al. (2011) and Li and Leckenby (2004) have given his consent that the placement of
banners in different location are not found effective anymore because very less people actually
like it click on it, however they find that the position of banners on a web page plays a very
significant role and from that only the percentage of users clicking on the ads depends.
More specifically Li and Leckenby (2004) and Chatterjee (2008) reveal that sometimes the pop-
up and pop-under ads are considered as disturbing online advertisements for the users; many user
without looking on to the ad they simply skip the ad which has a very negative effect on them,
that’s why forced exposure ads should be used carefully, and they have also suggested that other
types of ads which will not harm the brand image and perceptions of the customers should be
given more emphasis.
(Wang and Sun, 2010; Brettel and Spilker- Attig, 2010)on several studies indicated that online
advertising greatly impacts on purchasing intention of the netizen variously from one country to
another and which is due to difference in the belief system, attitudes and behavioral responses.
Mohammed and Alkubise (2012) noted that consumers buying trends depends on certain
dimensions like demographic dimension via online advertising, those such as income, Internet
skills, Internet usage intensity per day are critical factors, for example, those user who is having

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better Internet skills enable individuals to have higher Internet usage per day and those segment
of the user will definitely have the greater acceptance of online advertising and buying intention.
In (2017 Simons et.al.) says that Online advertised product psychologically brings the consumer
under pressure through the persuasiveness and make them to buy the products although they did
not need those products immediately.
(Lin & Kim, 2016; Muk& Chung, 2015) Moreover, if the consumers find that a particular
advertisement has important or useful information, then automatically they tend to get influence
by these advertisements and take those things into consideration while purchasing the products.
(Muhammad TahirJan ,2019) revealed that the buying trends of consumer on online advertising
depends on two prime importance, namely; usefulness of advertisement and features of
advertisement.
( A. U. Khandare, P. B. Suryawanshi ,2016) Internet advertising influenced purchase decision of
the customers to a moderate extent and the internet advertising is a key determinant of purchase
decision of the customers as they consider it to be an interaction level between them and the
society from which they buy their products from.For the image building of the product and better
market share the advertiser should have to make the advertisement on the variety and reality.
DebendrakumarMahalik and Ashamayee Mishra (2017) have mentioned that the online
advertisements have no significant influence on the different segment of the age groups. Any
factors can persuade individuals with no distinctive barriers.
(V.Kumar&Denish Shah, 2004). Online advertising is playing a role in significant higher role in
changing the consumer buying behavior and their preferences and also create new forms of
purchasing products.
ParulDeshwal (2016) Online advertising, however, is much less expensive and reaches a much
wider audience and will probably give you more profit than traditional advertising. Some of the
advantages mentioned by her was wider geographical reach, No rigorous payment, more targeted
audiences etc.
Choi and Rifon (2002) were of the view that “rapid growth in online advertising revenues
indicates the viability of worldwide web advertising as an alternative to that of traditional media
considering internet advertising growth, there is little doubt that the internet is a powerful and
viable alternative to traditional media advertising.”

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Objectives of the study


1. To study the relationship between demographic profile and inclination towards online
advertisements.
2. To find out the significant factors which affect the trend of netizens buying behavior.
3. To identify the factors of buying behavior of netizens
4. To find out the significant factors affecting the online purchasing decision.
Research methodology
Survey method is used for collecting the primary data and questionnaire is used as a tool for
conducting the survey among 203 respondents who are net savvy. Questionnaire is designed on
the basis of the parameters of online advertisements. For designing the questionnaire and
collecting the responses, online Google form is used. The options in the questionnaire are based
on the data collected from content analysis to study the response of the netizens towards them.
The data is shifted to Microsoft excel and the analysis has been done by using SPSS 20 version.
In this study two hypothesis are taken for the analysis of the study i: e
Ho – There is no association between demographic profile of respondent and likelihood of
purchasing after viewing online advertisements.
H1 - There is association between demographic profile of respondent and likelihood of
purchasing after viewing online advertisements.
Data Analysis
From the table-1 given below the demographic profile frequency distribution chart is mentioned
in which it is seen that the responses of 69% male respondents and 31% female respondents are
recorded and taken into consideration. It is observed that maximum numbers of youths ranging
from the age 20-30 years are more prone to digitization and are showing keen interest in
purchasing by getting influenced by the online advertisements.
With regard to the profession about 54.7% are students and 32% are employee who are working
either in government and private sectors, which indicates that students and the young job holders
perceive the advertisements which is displayed online.

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Ins digital transformation era the netizens are quite fond of using the online platform and

Table 1 Demographic profile frequency distribution

Valid Cumulative
Frequency Percent Percent Percent
GENDER Male 140 69.0 69.0 69.0

spending their time for various activities. From the data it is found that majority of the
respondents spend more than 4 hours daily in the internet in surfing various content. So taking
this opportunity the advertisers are investing profoundly in promoting their brand online

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Female 63 31.0 31.0 100.0
Total 203 100.0 100.0
AGE below 20 4 2.0 2.0 2.0
20-30 176 86.7 86.7 88.7
31-40 13 6.4 6.4 95.1
41-50 8 3.9 3.9 99.0
5.00 2 1.0 1.0 100.0
Total 203 100.0 100.0
Time Spent on < 1hour 2 1.0 1.0 1.0
Online Network
1-2 hour 40 19.7 19.7 20.7
2-3 hour 50 24.6 24.6 45.3
3-4 hour 51 25.1 25.1 70.4
> 4 hour 60 29.6 29.6 100.0
Total 203 100.0 100.0
Profession Student 111 54.7 54.7 54.7
Employed for
wages/ salary 65 32.0 32.0 86.7

Self employed
18 8.9 8.9 95.6
Retired 1 .5 .5 96.1
Others 8 3.9 3.9 100.0
Total 203 100.0 100.0

Table 1: Demographic profile frequency distribution, Source: Own survey data, SPSS output

In table-2 it is mentioned about the Chi-Square Test Result for likelihood of purchasing after
seeing online advertisement. When the p-values for Chi-Square test is less than 0.05 (5% level of
significance) then the null hypothesis is rejected. But in this case all three parameters of
demographic profile i: e Age, Gender, Profession, it is seen that the p-values is greater than 0.05
which leads to the acceptance of null hypothesis. This results leads to an inference that the

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demographic profile has no association with age, gender, profession in likelihood of purchasing
after the visualization of the online advertisement.

Table -2 Chi-Square Test Result for likelihood of purchasing after seeing Online advertisement

Chi-square Value D.f. P-Values


Age 15.252 16 0.506
Gender 0.553 4 0.968
Professions 12.863 16 0.683
Table -2 Chi-Square Test Result for likelihood of purchasing after seeing online advertisement,
Source: Own survey data, SPSS output

To identify the factors which is significant in effecting the buying trend of respondent the linear
regression analysis was carried out by taking the buying trend as a dependent variable and the
factors like online advertisement, time spent online, believing towards online advertisements,
opinion towards online advertisements, reading the comments after being influenced by online
advertisements etc. as independent variables. The result of the linear regression analysis has been
presented in the table given below (Table-3.1) from which it is clear that the power of regression
‘R’ value to be 0.609.That means 61% of the variation in the dependent variable is explained
through the variation of independent variable.
The more accurate prediction capacity of independent variable depends upon R-square value
which is 0.371 that means only 37% variation of dependent variable are explained by the
independent variable. This indicates that apart from online advertisements activity others factors
are also responsible on buying trends.
Table-3.1 Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate

1 .609a .371 .352 .70638

Table-3.1 Model summary for buying trend, Source: Own survey data, SPSS output
The table 3.2 shows the output of the ANOVA analysis and whether there is a significant
difference between our group mean. From the data it is seen that the significance value is 0.000

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(i.e. =0.000) which is below 0.05 and therefore, the model is statistically significant which means
whatever variation explained by the independent variable for the dependent variable are valid.
Table-3.2 ANOVAa
Model Sum of Squares df Mean Square F Sig.

Regression 57.708 6 9.618 19.276 .000b


1 Residual 97.799 196 .499
Total 155.507 202
Table-3.2, ANOVA Analysis for buying trend, Source: Own survey data, SPSS output

In the table 3.3 the coefficients of six variables are taken out of which it is found that the top
three independent variables such as the time spent online, believe factors towards the online
advertisements and influence of online advertisements in buying trends are really affecting the
buying trends after visualizing the online advertisements.

Table 3.3 Coefficientsa


Model Standardized Coefficients Standardized t Sig.
Coefficients
B Std. Error Beta
(Constant) -.026 .437 -.059 .953
 Time spent online .111 .045 .144 2.476 .014
 Believe online .464 .059 .468 7.907 .000
advertisement
 Opinion on online .144 .054 .158 2.691 .008
advertisement
 Read comment after .135 .059 .135 2.293 .023
being influenced by
online advertisement
 Post question online .119 .052 .131 2.302 .022
 Online advertisement .042 .050 .049 .837 .404
makes victims
Table-3.3, coefficient Analysis for buying trend, Source: Own survey data, SPSS output

The attempt was made to know whether the online advertisements influence the buying decisions
of the netizens or not. To test this, various statistical analysis was done like Linear regression
analysis, Anova and coefficient. The dependent variable taken is purchase decision influenced by

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the online advertisements and the independent variables are same as per the study of buying
trend.
The result of the linear regression analysis has been presented in the table below (Table-4.1)
from which it is noticed that the power of regression ‘R’ value to be 0.318.That means 31.8% of
the variation in the dependent variable are explained through the variation of independent
variable.
The more accurate prediction capacities of independent variable depend upon R-square value
which is 0.101 that means only 10% variation of dependent variable are explained by the
independent variable. This indicates that the online advertisements somehow not influencing
much to the netizens when it comes to take the decision while purchasing

Table-4.1 Model Summary


Model R R Square Adjusted R Square Std. Error of the Estimate
1 .318a .101 .073 .82916
Table-4.1 Model summary for purchase decision, Source: Own survey data, SPSS output

The table 4.2 shows the output of the ANOVA analysis and whether there is a significant
difference between our group mean. From the data it is seen that the significance value is 0.002
which is below 0.05 and therefore, the model is a statistically significant which means whatever
variation explained by the independent variable for the dependent variable are valid.

Table 4.2, ANOVAa


Model Sum of Squares Df Mean Square F Sig.

Regression 15.141 6 2.523 3.670 .002b


Residual 134.751 196 .688
Total 149.892 202
Table-4.2 ANOVA Analysis for purchase decision, Source: Own survey data, SPSS output
In the table 4.3 it is observed that the beta-coefficients of five independent variables are less
which signifies that online advertising is not influencing the netizens in their purchase decision.

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But only one independent variable i.e. the customer post question online to gather the
information significantly attract the netizens to take the decision on their purchase behavior.

Table 4.3 Coefficients


Unstandardized Standardized
t Sig.
Model Coefficients Coefficients
B Std. Error Beta
(Constant) 2.997 .513 5.839 .000
Time spent online .000 .053 .000 -.007 .995
Believe online advertisement -.104 .069 -.107 -1.514 .132
Opinion on online
-.113 .063 -.126 -1.796 .074
advertisement
Read comment after being
influenced by online -.052 .069 -.053 -.750 .454
advertisement
Post question online .205 .061 .230 3.370 .001
Online advertisement makes
.066 .059 .078 1.118 .265
victims
Table-4.3, coefficient Analysis for purchase decision, Source: Own survey data, SPSS output

The table 5 illustrated belowshows the factors affecting the purchase decision of the netizens in
regard to the online advertisements. Out of 203 respondents, 37.4% and 42.4% have agreed that
brand reputation and customer reviews respectively are the major factors which influence the
purchase decision of the netizens. Hence the online advertisers should focus on to increase the
customer reviews and brand reputation. In the digital space, a brand reputation is built through
the constant production and publication of high quality content through a meaningful
conversation and through the contribution to respective social networks.

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Table-5 ,Profession - Factors affecting purchase decision Cross tabulation


Factors affecting purchase decision Total
Advertisement Attractive Brand Customer
Content Advertisement Reputation Review
Count 11 11 46 43 111
% within
Student 9.9% 9.9% 41.4% 38.7% 100.0%
Profession
% of Total 5.4% 5.4% 22.7% 21.2% 54.7%
Count 7 3 21 34 65
Employed
% within
for 10.8% 4.6% 32.3% 52.3% 100.0%
Profession
wages/salary
% of Total 3.4% 1.5% 10.3% 16.7% 32.0%
Count 4 3 5 6 18
Self % within
Profession 22.2% 16.7% 27.8% 33.3% 100.0%
employed Profession
% of Total 2.0% 1.5% 2.5% 3.0% 8.9%
Count 0 0 0 1 1
% within
Retired 0.0% 0.0% 0.0% 100.0% 100.0%
Profession
% of Total 0.0% 0.0% 0.0% 0.5% 0.5%
Count 2 0 4 2 8
% within
Others 25.0% 0.0% 50.0% 25.0% 100.0%
Profession
% of Total 1.0% 0.0% 2.0% 1.0% 3.9%
Count 24 17 76 86 203
% within
Total 11.8% 8.4% 37.4% 42.4% 100.0%
Profession
% of Total 11.8% 8.4% 37.4% 42.4% 100.0%
Table-5, Profession - Factors affecting purchase decision Cross tabulation
Limitation of the Study
 For the purpose of the study less number of the responses is recorded
 The data would be collected from the middle aged people to understand their preferences.
 More numbers of factors to be considered for better understanding of purchase decision and
buying trends
Findings and Conclusion
The results show that online advertisements influence the buying trends of the netizensand it has
moderate effect on the purchase decisions. Nonetheless, online advertising may not be a key
determinant of purchase decision of the customers as they consider it to be an interaction level
between them and the society from which they buy their products.
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For image building of the product and to increase the market share, the advertisers have to keep
an eye on the customer reviews for which they can take the advantage of Online Reputation
Management in which response to a negative feedback and valuable suggestion to the customers
can increase the number of positive customer reviews.
The advertiser should also focus on building the brand reputation. The process of building a
brand reputation takes time, but not a lot of money. So the company has to monitor the brand
regularly and provide a good experience to the customer. This can enhance customer brand
engagement. Transparency is the name of the game when it comes to your digital branding
efforts. When using social media, brand managers know that they must tell the whole truth
because now a days the consumer are increasingly technology savvy and many of them have
highly sophisticated filters to spot insincere brands that aren’t up front with their audiences.
Sometimes the advertiser provides advertisements which mislead the consumers, and give the
content of the advertisement which is unproven to promote their products. This somehow leads
to the unethical practices due to which many customers become the victims and in the later phase
the believe factors also reduces. Hence the authenticity of the online advertisement should be
given more priority.
From the data it is seen that majority of the respondents are the youths who are spending more
time online and their buying trends are greatly influenced by the online advertisements but the
purchase decision is not that significant and are moderately influenced by the online
advertisements. A comprehensive study taking more factors can provide more accurate online
buying insights of netizens. Since digitization is becoming the way of life for every age group, a
thorough study on different age groups can help online companies to draw traffics towards their
websites and webpages to strengthen brand positioning and online sales. Similarly advertisers
should focus more on the millennial consumers to influence their online purchase decisions.

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