THE PROBLEM AND ITS BACKGROUND

Introduction

People tends to encounter advertisement everywhere whenever they watch television, surf

the internet or when they go outside. In modern business, online advertisement is more

applicable to use in promoting and spreading information about the products, because in our

generation many people always use internet to gain information that can help them in their daily

living, necessities, education and entertainment. When it comes to business, owners grab the

opportunity to spread and promote their products through online advertisement. According to

Korgaonkar and Wolin (2002) most companies usually use online advertisement to advertise

their product through Facebook, Twitter, Instagram, Youtube and more and the internet is

considered to be the most significant direct marketing channel for the global marketplace.

Modern technology allows advertisers to create a unique feature of design in advertisement

that can help them to catch the attention of the customers. Simola, Kivikangas, Kuingas, and

Krause (2013) said that in online advertisement, design is one of the keys to attract the customers

to buy. They said that if online advertisement has poor design it might be ignored or skipped

from being watched.

On the customers side, online advertisement is helpful for them because all the information’s

that they want to know about the product is already included in the advertisement. Customers

have the rights to choose what brand or product they will buy. Of course, before they choose

what product they will buy they are going to use their decision making and online advertisement

is part of that because some customers based

on the advertisement to purchase product. So that, the online advertisement should be clear and

unique. According to Wang and Sun (2010) product information is the most important in
advertising. An information of a product can help the customers to have better decision. Smith

(2002) stated that customers spend a lot of time in searching information with some goal, and

that goal is to know well if online advertisement is very helpful or effective.

In everything there is always a problem, online advertisement facing some issues or

problems it is either in the advertiser or customers. There are a lot of advertisers who take risk

when it comes to online advertisement. Advertiser put their money to show or promote the

product with a limited time but not all the people are interested, some people skip or ignore it

and that is the problem. Of course in every problem there is a solution or answer that is why the

researcher want to conduct this research to find out if the online advertisement is effective and

can help the students in their purchasing decision especially for those who always use internet

and treat it is as part of the daily lives. At the end of the research customers will set buying

criteria which will help them to be wise in purchasing the product they want.