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Busres Measuring The Effectiveness of Online Customer Reviews On Purchase Decisions
Busres Measuring The Effectiveness of Online Customer Reviews On Purchase Decisions
Introduction
This chapter of the study explain the introduction of the study. It includes the background of
the study, statement of the problem, theoretical background, and conceptual framework, scope of
The development of digital marketing has immensely altered the marketing scene. It has
given all organizations a chance to market and advertise their brand on a global platform,
majorly growing their possible target audience (Stafford, 2022). As a result, businesses are
investing heavily in digital advertising to reach and attract their target customers. Digital
advertising is particularly appealing to younger generations, such as students, who are highly
tech-savvy and spend a considerable amount of time online (Bakker & Schouten, 2019). In the
highly competitive market and technological advancement with the usage of the internet, it has
shifted the traditional market to digital marketing strategies. Digital marketing grabs a wide area,
and in the highly competitive market, it involves exploring business models using digital
technologies, which reduce costs and expand businesses globally (Kaur et al. 2018).
Among the various consumer groups targeted by digital advertising, students have
emerged as a crucial market segment for businesses. Students are not only the future consumers
but also have significant purchasing power and influence on the purchasing decisions of their
family and friends. Therefore, understanding the impact of digital advertising on students'
purchasing behavior is crucial for businesses to devise effective marketing strategies. Previous
studies have investigated the impact of digital advertising on the purchasing behavior of students.
For example, Khechine et al. (2019) found that digital advertising positively influenced the
purchasing behavior of university students in Tunisia. Similarly, Lee and Hong (2016) found that
mobile advertising had a significant impact on the purchase behavior of college students.
Furthermore, Yang et al. (2018) found that social media advertising positively influenced the
There is a growing body of research that has investigated the impact of digital advertising
on consumer behavior, with some studies focusing specifically on the student population (Chung
& Pysarchik, 2017; Lee et al., 2019). However, there is still much to be learned about how
policymakers who seek to regulate the digital advertising industry. By identifying the factors that
businesses can develop more effective advertising strategies that resonate with their target
audience. However, there is still a need for further research to explore the specific factors that
The primary purpose of the digital market is to understand the customers’ needs and
allow them to mix the product with digital media. The digital market allows customers to keep an
eye on the information provided by the organization related to the product; it ensures
Digital marketing provides an opportunity for the customers to have a look at the
information about the product provided by the company and be able to make comparisons
accordingly so that they can enjoy the right to choose and can place an order at any time, 24/7, at
any place. With the updated technologies and an increase in the usage of internet engagement,
behavior changes and organizations should understand the behavior of a consumer (Tandon,
Therefore, this study aims to investigate how digital advertisements affect the purchasing
behavior of students. The study will analyze how digital advertisements affect different stages of
the consumer decision-making process, including awareness, consideration, purchase, and post-
purchase evaluation. Additionally, the study will examine how factors such as age, gender, and
income level may influence the impact of digital advertisements on consumer behavior.
study will contribute to the existing body of knowledge on consumer behavior and digital
advertising. The findings of this study will be beneficial to businesses that target students as their
primary audience. The study will provide insights into how to create effective digital advertising
This study aims to explore how Digital Advertisement impacts the purchasing decisions of
study will analyze the influence of Digital Advertisement on consumer behavior, considering:
2. Gender
3. Year Level
4. Is there a significant correlation between the online customer reviews and demographic
In summary, this study aims to understand the role of Online Customer Reviews on Purchase
Decisoins among Business Administration students and identify key factors influencing their
purchasing decisions.
Hypotheses
Null Hypothesis: There is no notable correlation between the impact of online customer reviews
reviews and the decision-making process when analyzed collectively and categorized according
Theoretical Framework
The Stimulus-Response Theory, also known as the S-R Theory, offers valuable insights
into how digital advertisements influence consumer buying behavior. According to this theory,
human behavior is shaped by the association between a stimulus and the corresponding response.
In the context of digital advertising, the stimulus is the advertisement itself, which serves as a
stimulus that elicits a desired response from students, such as making a purchase. The model
suggests that marketers can use various stimuli, such as advertisements, promotions, and sales, to
influence consumer behavior. The stimulus-response model is the starting point for
Marketing and environmental stimuli enter the buyer’s consciousness. The buyer’s
characteristics and decision process lead to certain purchase decisions. The marketer’s task is to
understand what happens in the buyer’s consciousness between the arrival of outside stimuli and
For consumers, perception and attention play crucial roles in determining their response
to digital advertisements. With countless ads vying for their attention, consumers' perception and
attention are influenced by factors like the ad's design, placement, relevance, and their own level
of involvement with the product category. Once a consumer perceives an ad, cognitive
processing begins. They interpret the message, evaluate the value proposition, and assess the ad's
relevance to their needs and desires. This cognitive processing involves considering product
advertisements often aim to elicit specific emotions, such as happiness, excitement, trust, or fear.
Emotional reactions triggered by the ad can shape the consumer's attitude towards the brand or
The digital advertisement has an impact on the consumer's decision and action regarding the
purchase of the advertised good or service. This can encompass brand choice, purchase intention,
timing of the purchase, or even the decision not to make a purchase at all.
consumer behavior, it's important to acknowledge that additional factors contribute to the
norms, and previous experiences all play significant roles alongside the stimulus itself.
By applying the insights from the Stimulus-Response Theory, marketers can gain a better
understanding of how digital advertisements influence consumer behavior. They can optimize
their campaigns by designing ads that effectively capture attention, engage cognitive processes,
and evoke desired emotional responses. This understanding can lead to more effective strategies
that resonate with consumers and drive desired outcomes in terms of buying behavior.
Conceptual Framework
reviews in shops such as facebook,shopee, lazada,tiktok, amazon and shein. Factors such as the
frequency, duration, and types of online customer reviews encountered by students are
This encompasses the actual purchasing actions of students, including the frequency of their
purchases, the monetary value spent on purchases, and the specific products or services acquired.
Measurement of this variable can be obtained through self-reported surveys, purchase records, or
(facebook,shopee, Decisions
Decision Making
lazada,tiktok,
Intention to Shop
amazon and shein)
Online
Decision among Business Administration Students at Carlos Hilado Memorial State University,
1. Students: The study seeks to raise awareness among students about how digital
2. School: It aims to provide insights for the institution to understand the digital
4. Researchers: The study aims to contribute to existing literature by providing insights for
consumer behavior.
This study focuses solely on the responses of BSBA students regarding their buying behavior
Conceptually, they learn business principles while strengthening their leadership skills,
and they have a flexible curriculum that allows them to pursue a variety of careers (Gurbuz,
2020).
students will serve as the respondents for the study, providing data and insights relevant to the
research objectives.
Conceptually, it refers to the buying behavior of individuals and households that buy
goods for personal use and consumption (Philip Kotler, Gary Armstrong, 2012).
or indicators that can be utilized to identify and understand how consumers make purchasing
decisions.
Customization
age, gender, ethnicity, income, and occupation (American Marketing Association, 2021)
of products, services, or experiences, typically posted on digital platforms accessible via the
internet. These reviews encompass written feedback, ratings, and occasionally multimedia
elements like images or videos. Online reviews serve as a form of electronic word-of-mouth
communication, enabling individuals to share their subjective opinions and experiences with
others in an online setting (Cheung & Thadani, 2012; Filieri, 2015; Xie et al., 2011).
Operationally, Online reviews are identified from various digital platforms such as e-
commerce websites
Informativeness
conveyed by a speaker and the efficiency of transmission. (Nicholas & Brookshire, 1993)
Operationally, In practical terms, the quantity and quality of information found within a
website.
Invasiveness
Conceptually, in the context of digital advertising, invasiveness refers to the degree to
which an advertisement disrupts the user's online experience and privacy. Invasive digital
advertisements are those that interfere with the user's ability to browse the internet or use an app
comfortably, often by blocking content or causing unexpected interruptions (Böck et al., 2016).
consumer's online experience are typically measured by factors such as how often they appear,
where they're placed, how intrusive they are, and how relevant they are to the user.
Satisfaction
comparing a product’s perceived performance (or outcome) in relation to his or her expectations
Security
Conceptually, it refers to "a state of being free from danger or threat" (Crawford and
Hutchinson 2016).
Operationally, this entails putting into action methods to secure consumer information,
prevent fraudulent behavior, and guarantee a secure and reliable online advertising environment.
Chapter II
This chapter presents a Review of Related Literature that will serve as a guide to
chapter also represents both local and foreign sources that are related to the study. The purpose
of this chapter is to review related literature on how Digital Advertisement Influence Consumer
Foreign Literature
Adnan (2014) established that perceived advantages and product awareness had a
positive impact on consumer attitudes and buying behavior in Pakistan. In Kenya, a previous
study conducted in Nairobi County revealed that some of the reasons for the adoption of online
shopping include time savings, easy comparison of alternative products, fairer prices of online
goods, expert or user reviews of products, and access to a market without borders (Ngugi,
2014).
Norms, and Control Beliefs on Online Intentions: A Test of the Theory of Planned Behavior,
the author found that the attitude toward online shopping, more specifically their behavioral
Control behavior was found to have a stronger influence than that of consumer
shopping attitude on their shopping intentions, and subjective norms were found to have no
influence on their online shopping intentions. Online shopping experience is negatively related
to perceptions of products and financial risks associated with online shopping, regardless of
product category (Dai, Forsythe, & Kwon, 2014). Perceived risks associated with online
shopping negatively influence online purchase intention and behavior (Dai et al., 2014). The
greater the perceived risk, the more a consumer may choose a traditional retailer for the
Online advertisement is a promotional tool that uses the internet and the World Wide
Web to deliver marketing messages to attract customers (Tutaj, 2012). Ha (2017) defines online
advertising as deliberate messages placed on third-party web sites, including search engines
and directories available through internet access. The author adds that online advertising can be
image, and slogans. Online advertising is a form of promotion that uses the internet and the
World Wide Web to deliver marketing messages to attract customers. Examples of online
advertising include contextual ads on search engine results pages, banner ads, blogs, rich media
ads, particular networking advertising, interstitial ads, online classified advertising, advertising
buying behavior towards mobile phone users using the internet, using Vengeri, a town in
Kozhikode Municipal Corporation of Kerala, as a case study. Fifty copies of the questionnaire
were administered to collect relevant information for the study. It was found out from the study
that males and females are influenced by internet advertising, but females are not more
influenced than males. Similarly, the age group and income group are not factors that
determine how much internet advertising can influence consumer buying behavior.
Lin et al. (2018) emphasized that decision-making by consumers has traditionally been
seen as a methodical process in which buyers learn about a product's features and benefits and
then weigh those features against those of competing products to find the best possible fit.
result of the rise of the Internet and other forms of digital technology. Furthermore, Abdelsalam
et al. (2020) highlighted that buying on impulse occurs when a person is exposed to a stimulus
and then makes a snap decision to purchase an item without having any kind of prior plan to do
so. The lack of constraints that shoppers face when they shop online makes it more likely that
According to Arne Floh and Madlberger (2013), a true case of impulse buying occurs
when a customer deviates from their usual purchasing habits to buy an unexpected novelty
item. Cognitive effort is required to recall impulsive purchases since they demand recalling
past experiences or information about things. Nghia et al. (2021) claimed that when a customer
sees a product they do not already own but immediately thinks they need, that's an example of
suggestive purchasing. Rather than being a purely emotional response, suggesting impulsive
purchasing may include a series of interactions between people. Partially planned impulsive
purchasing means that customers are receptive to making purchases outside of their original
A fundamental distinction that can be made between emotional qualities is whether they
are constructive or destructive. Customers who have a favorable attribute effect are more likely
to like their experience of online shopping, spend more time examining things, and surf the site
extensively than customers who do not have a favorable attribute effect (Turkyilmaz et al.,
2015). Customers that are negatively influenced, on the other hand, are the ones who are
stressed out, irritated, and do not feel anything pleasant when doing online research or making
online purchases. Customers who have positive behavior as a genetic characteristic are more
likely to participate in web surfing (both for hedonic and utilitarian reasons) in comparison to
customers who have negative behavior as a trait (Habib & Qayyum, 2017). In addition, several
studies have shown that a person's characteristics have a major impact on impulsive purchases.
For example, a person's propensity to engage in avoidance behavior is lower, but their
propensity to engage in approach activity is higher if that person has a higher positive affect
score (Zhang et al., 2018). When individuals are in a more upbeat emotional state, they have a
greater tendency to make rash financial decisions, including spending more money and buying
World Wide Web in order to do research before making a purchase. Some people who purchase
online spend a significant amount of time just browsing different websites and reading
customer feedback. Internet usage may be broken down into two separate categories: browsing
for simply enjoyable reasons and browsing for more useful ones. Wells et al. (2011) found that
consumers may engage in hedonic Browsing for the purpose of pleasure and satisfaction while
also participating in utilitarian Browsing in order to limit risk and learn more about alternatives
when they shop online. Hedonic Browsing and utilitarian Browsing are both types of online
shopping. When they are shopping online, consumers who use the Internet mainly for
functional reasons often place a higher value on speed and cost-effectiveness. Despite this,
whether or not they end up purchasing anything. According to Lim and Kim (2021), exploring
the Internet, whether for functional or recreational objectives, significantly contributes to the
have a significant influence on the kind of purchases that are made on the spur of the moment
in an online setting.
Broad categories of impulse buying (Rezaei et al., 2016) found that there are several
well as "pure" or "unintentional" buys. A customer is said to have participated in pure impulse
buying if they stray from their typical purchase patterns in order to get an item that is not
understanding goods, impulsive purchases necessitate some mental effort. Apart from that,
Zheng et al. (2019) assessed that consumers are said to engage in impulsive shopping when
they learn about a new product and almost instantly experience the need to buy it, according to
one school of thought. The difference between pure impulse buying and suggestion-impulsive
purchases is that the latter may be more of an interpersonal activity than an emotional one.
Moreover, Park et al. (2012) determined that customers who are open to making purchases
outside of their shopping aims and actively seek bargains are engaging in what is known as
"planned impulsive buying," which is also known as "planned impulsive shopping." There are
Since Browsing is, by definition, less concentrated and undirected than searching, it is
unnecessary to discriminate between the types of online material that people explore.
Additionally, online reviews are frequently located next to sellers' product descriptions on
shopping websites (Lazim et al., 2020). It is impossible to differentiate the behavior of reading
online reviews from the behavior of seeing information provided by marketers. However, it is
possible for a person to go into a shop without having a predetermined goal in mind;
nonetheless, they wind up making a purchase as a result of a suggestion made while reading
online assessments of the product that is being considered for purchase. As a natural
progression of this idea, the terms "electronic WOM" or "online reviews" are used to refer to
any comments made by consumers about a product or vendor on the Internet, regardless of
whether such comments are positive or critical (Ampadu et al., 2022). Online reviews, in
contrast to other, more traditional kinds of word-of-mouth communication, have a much larger
potential to reach a large audience by making use of the Internet's technological capabilities, as
All of us are consumers who consume products and services in our daily lives. When
buying goods, there are several stages that a consumer goes through to make a purchase
decision. This depends on several factors. According to Khan (2006), consumer behavior is a
decision-making process that involves physical activity in acquiring, evaluating, using, and
disposing of goods. Buyer behavior has been defined as "a process that, through inputs and
their use through process and actions, leads to satisfaction of needs and wants" (Enis, 1974, p.
228). Consumer buying behavior has numerous factors as a part of it that are believed to have
some level of effect on the purchasing decisions of the customers. Consumer buying behavior
refers to the buying behavior of individuals and households that buy goods for personal use and
consumption (Philip Kotler, Gary Armstrong, 2012). Consumers make decisions every day, and
the buying decision is the focal point for the marketer. The consumer's reaction to the
organization's strategy has a significant impact on the firm's success. The marketer must follow
This seminal study investigates the effect of word-of-mouth on sales using online book reviews.
Through a detailed analysis, the researchers demonstrate how online reviews influence consumer
behavior and purchasing decisions. They explore the dynamics of online reviews, such as the
volume, valence, and variance of reviews, and their impact on sales. By examining a dataset of
Amazon.com book reviews and sales data, the study provides empirical evidence of the
preferences and purchase intentions. Using panel data analysis, they explore whether online
reviews directly impact sales and to what extent. The study examines the relationship between
online reviews and consumer behavior, considering factors such as review valence, review
volume, and product characteristics. Through empirical investigation, the researchers provide
insights into the mechanisms through which online reviews influence consumer decision-making
Focusing on the role of online consumer reviews in driving sales, this study investigates the
moderating effects of product and consumer characteristics. By analyzing a large dataset from an
online marketplace, the researchers examine how different types of products and consumer
demographics interact with online reviews. They explore how factors such as product popularity,
price, and brand reputation influence the impact of online reviews on consumer behavior.
Through advanced statistical modeling, the study uncovers nuanced insights into the complex
relationship between online reviews and sales. Zhu, F., & Zhang, X. (2010)
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