Professional Documents
Culture Documents
IQRA UNIVERSIY
This study is about to measure the attitude of internet users towards internet advertising based on internet users in Karachi, Pakistan.
After the existence of Internet, it had huge impact on the way organizations were doing their business. The number of Internet users also grew exponentially over the last two decades. Presently online advertising is a part of the advertising mix of almost all large business organizations. It is known that a persons buying behavior is affected by the psychological factors such as attitude, perception, attributes, motivation, learning and beliefs etc. There is a need to find out the effect of Internet advertising on these psychological factors of the Internet users. The objective of this paper is to measure the attitude of the Internet users towards Internet advertising. The study also tries to explore the factors that affect the attitude of the Internet users towards online advertising. The data for this paper were collected through the conduct of a primary study with the help of questionnaires. The attitude of the Internet users towards online advertising was measured using the SPSS software. The research provides insight into the decision making process of young Internet users and their attitude towards Internet advertising. This study will help the organizations in formulating an effective advertising mix.
KEYWORDS: Consumer attitude, Consumer decision making, Internet Advertising, On-line advertising.
1. Introduction
The Internet and the World Wide Web (WWW) has created a fast moving industry. Within this industry, the world of online advertising has grown rapidly in last two decade. It is expected that a larger portion of advertisers' media budgets, within the next decade, will be dedicated to this new form of marketing. It appears that getting consumers to shop online, rather than only search for information, has proved difficult and it is estimated that businesses worldwide lost approximately $6.1 billion due to failed purchase attempts1. Many studies have already proved that the intention to purchase is affected by the psychological factors such as attitude, motivation, learning and perception. Attitude towards an object affects the consumers intention to purchase that product. Online advertising does no t fit into the mold of any traditional advertising model. It disseminates information in order to affect a buyer-seller transaction, as would any traditional model (i.e. television, radio, newspaper, magazine, etc.). However, there are four major differences between the online versus the traditional method. They are interaction, customization, tracking, and deliverability. Although the proficiency of using Internet is relatively low and Internet advertising is still in its infancy, with the advantages of being convenient, safe, efficient and economical, many companies are confident that the benefits of Internet advertising would outweigh traditional way of advertising in the future and therefore, companies are eager to implement the new technology and services in order to penetrate the market and gain competitive advantage. Advertisers website is usually hyperlinked with the display advertisements. Users can simply click on the advertisements and can be redirected to another website. As the number of Internet users is increasing dramatically, it provides a big room for web advertising. However, as web users get more and more experienced, the web advertisements become less effective. 2Internet users think that the online advertisements are annoying and contain computer virus. Due to the increase of this kind of advertising, lots of software is built to block them. Anderson (2005) found that about 38% of web surfers use some form of blocker to block the annoying advertisements. In 2000 online advertising spending in the United State reached $8.2 billion. These numbers have increased to $12.7 billion because more people spending more time online. Rapid change in technology internet is the biggest source of information.
2.1 Theoretical Background Attitudes and Behavioral Responses Understanding consumers behavioral response is essential because behavioral response/purchase intentions assists in predicting the consumers purchase behavior (Engel, Blackwell and Kollat, 1978;Fishbein and Ajzen, 1975; Warshaw, 1980).Consumers positive attitudes toward advertising is expected to help consumer to recall the brands shown in the ads and influence their behavioral intentions (Mehta, 2000). Wan and Sun (2010) found Romanians had the most positive ATOA and were most likely to click on advertisements. Current study assumes that consumers positive attitude towards social media advertising has positive effect on their behavioral response.Behavioral response consists of two outcome variables; number of time consumers click on the banner ads and watch/read them and purchase the products/brands shown in those ads. Ad clicking is an important tool to measure the effectiveness of online advertising(Dreze and Zufryden, 1997). The same technique can be applied to measure the effectiveness of social media advertising because most of the social media advertising is akin to
3. THE QUESTIONNAIRE
First the data about the Internet users demographics were collected such as, Age, Education level and Monthly income. The questionnaire consists of four variables that measure the attitude of Internet users. The first variable has 3 questions for collecting data about the demographic characteristics of Internet users. The second variableconsists of 9 questions which is our dependent variable. 1. Each of the ninequestions of online advertising using five point Likert scales anchored by 1 = strongly disagree and 5 = strongly agree. The third and fourth variable are consists of 3 questionsA structured questionnaire was used for this research, as the data collection method involved a field work with student and IQRA University and Internet users. Items in the questionnaire included demographic questions (such as income, age, and education level). The structured questionnaire consisted of fixed-alternative questions. Respondents were given a number of alternative responses to choose from. The fixed-alternative questions allowed for standardized administration. 3.1 RESEARCH METHODOLOGY
In accordance with the empirical studies, the regression model equation for Attitude of internet users (ATTITUDE) is expressed as a function of Perception of internet advertising (PERCEPTION), demographic of internet users (demographic)and (indignity).Following equation is used to examine the effect of perception of online advertising, demographic and indignityon the Attitude of internet users.
ATTITUDE = + 1 (PERCEPTION) + 2 (DEMOGRAPHIC) +3 (INDIGNITY) Where: Y = ATTITUDE PERCEPTION = Perception of internet advertising DEMOGRAPHIC INDIGNITY e = Error Correction Term
4. Data Analysis
In this chapter of data analysis the data has been structured in a certain order. The data will be analyzed by the use of different tests in SPSS software.
4.1 Reliability
Data reliability has been demonstrated by applying statistical tests of reliability. The questionnaire for this study based on 20 questions which includes both dependent and independent variables. Reliability test has been applied in SPSS software and according to the limitation; the value of Cronbachs Alpha should be more than 0.5 means 50%. The Cronbach alpha value of this study is 0.727 means 72.7%, and shows that the reliability of data should be acceptable.
10
Table 4.1 Reliability Statistics Variable Attitude Perception Demographic Indignity Overall No. Of Items 9 4 3 3 19 Cronbach's Alpha 0.773 0.546 0.648 0.602 0.743
The first variable Attitude has 9 items and the value of alpha of these items is 0.773. In the second variable Perception have 4 items and the value of alpha is 0.546. In the third variable Demographic have 3 items and their value of alpha is 0.648. In the fourth variable Indignity have 3 items and the value of alpha is 0.602. Some variables have 9 items some have 4 or 3 it means that these have less contribution. But the overall reliability of scale is 0.743 or 74.3%.
0.000
As per the requirement for the value of alpha that it should be more than 0.50, so in the above mentioned table the reliability of the data can be checked by the value of Cronbachs alpha and
11
Table 4.2.2
Demographic
Perception
Attitude
Indignity
Age of Respondent Level of Education Monthly Salary of Respondent Most important attributes in the perception of internet users. Confortable while purchasing through internet advertisement phone number and address. advertisement result in lower prices advertised brand give better value for money than unadvertised brand Usage of Internet Notice of internet advertisement Do you like Internet advertisement? Help and getting information regarding products and services. Attention to the internet advertisement Reputation of the company Trust on internet advertisement information help to make purchase decision Promising that provide of same quality and performance reflects in internet advertisement. distract the attention of internet user internet advertisement make you feel offended misled by internet advertisement
0.791 0.690 0.812 0.378 0.677 0.652 0.655 0.540 0.357 0.669 0.788 0.691 0.601 0.488 0.536 0.546 0.676 0.654 0.807
12
In this table, factor result shows the independent variables accuracy of the data. In above table 4.2.2 rotated component matrix defines the correlation in the variables to the dependent variable. The value which has the highest value of correlation shows the highest level of relationship to the dependent variable. It makes group of each variable.
V.I.F
Table 4.3.1 describes the statistics of all variable both dependent and independent variables with their beta value, co-linearity value, significant value. The value of shows us the nature of relationship between dependent and independent variables. If the value is positive means that there is positive relationship between independent and dependent variable and the negative value
13
Internet users attitude = 2.220 + 0.258 (Perception) -0.016 (demographic) + 0.134 (Indignity).
The t value in table 4.3.1 shows the relative importance of each variable in above model. P value shows significance of each variable. In above table values only Perceptionvariable is less than 0.05 which means this variable has significant effect on Internet Users Attitude, whereas value of Demographic and Indignity variables are greater than 0.05 which means these variables has insignificant effect Internet Users Attitude.VIF value shows the coefficient of multiple colinearity which means that the variables are very much connected with each other. When two variables are highly correlated it means both variable are showing same occurrence and both are showing same information.
14
The current target audience of the online advertising is relatively small due to its low level of awareness but, this should not be underestimated. There is good potential for introducing both online and offline advertising as the penetration of Internet is growing day by day. This study provides an insight into the attitude measurement towards Internet advertising and the attributes of online advertising that affects the attitude of internet users. From the findings of the study it can be concluded that presently Internet users dont have a positive attitude towards Internet advertising. It does not mean that the organizations should ignore Internet as a medium of advertising. The measure limitation of this study is that it is confined only to a very small geographic area and the sample size is small. Analysis such as correlating demographic factors with the attitude towards Internet advertising can be done in future study. A more detailed study can be carried out to acquire insights into the phenomena, based on a larger sample size and with a better distribution of respondents demographics.
15
Bibliography
Bakshi& Gupta (2013),Online Advertising and its impact on consumer buying behavior, Volume 3, Issue 1 (February 2013),(ISSN 2231-5985.) International Journal of Research in Finance & Marketing Wolin, L. D., &Korgaonkar, P. (2003). "Web adversiting: gender differences in beliefs, attiudes and behavior", Internet Research, Vol. 13 Iss: 5, pp.375 - 385. Florida,USA.: MCB UP Ltd. Alam, A., Arshad, M. U., & Shabbir, S. A. (2012). "Brand credibility, customer loyalty and the role of the religious orientation", Asia Pacific Journal of Marketing and Logistics, Vol. 24 Iss: 4, pp.583 - 598. Islamabad, Pakistan: Emerald Group Publishing Limited. Wang & Sun 2010, "Examining the role of beliefs and attitudes in online advertising A comparison between the USA and Romania", International Marketing Review, Vol. 27 No. 1, 2010, pp. 87-107, q Emerald Group Publishing Limited 0265-1335 Persaud, A., & Azhar, I. (2012). "Innovative Mobile Marketing Via Smart Phones, Are Consumer Ready?", Marketing Intelligence & Planning, Vol. 30 Iss: 4, pp.418 - 443. Canada: Emerald Publications. Persaud, A., & Azhar, I. (2012). Innovative Mobile Marketing Via Smart Phones, Are Consumer Ready? Canada: Emerald Publications. Priya, P., Baisya, R. K., & Sharma, S. (2010). "Attitude and age differences in online buying", Emerald 28, (2010). New Delhi,India: Emerald Group Publishing Limited. Rahman, S., & Azhar, S. (2011). "Xpressions of generation Y: perceptions of the mobile phone service industry in Pakistan", Asia Pacific Journal of Marketing and Logistics, Vol. 23 Iss: 1, pp.91 - 107. Karachi,Pakistan: Emerald Group Publishing Limited.
16
Item-Total Statistics Scale Mean if Item Deleted Age of Respondent Level of education Monthly Salary 4.31 4.40 4.48 Scale Variance if Item Deleted 2.638 2.768 1.347 Corrected ItemTotal Correlation .530 .393 .564 Cronbach's Alpha if Item Deleted .508 .637 .458
Item-Total Statistics Scale Mean if Item Deleted Usage of Internet Notice of internet advertisement 25.20 26.41 Scale Variance if Item Deleted 31.129 30.117 Corrected ItemTotal Correlation .324 .180 Cronbach's Alpha if Item Deleted .768 .794
17
Item-Total Statistics Scale Mean if Item Deleted most important attribuites in the perception of internet users Confortable while purchasing through internet advertisement phone number and address. advertisement result in lower prices advertised brand give better value for money than unadvertised brand 8.84 8.39 5.649 5.650 .366 .358 .452 .457 8.83 4.372 .490 .318 8.38 Scale Variance if Item Deleted 5.816 Corrected ItemTotal Correlation .160 Cronbach's Alpha if Item Deleted .630
Indignity
18
Item-Total Statistics Scale Mean if Item Deleted distract the attention of internet user internet advertisement make you feel offended misled by internet advertisement 6.07 2.595 .488 .400 5.97 2.767 .357 .576 5.79 Scale Variance if Item Deleted 2.335 Corrected ItemTotal Correlation .399 Cronbach's Alpha if Item Deleted .527
Overall:
Case Processing Summary N Cases Valid Excludeda Total 96 0 96 % 100.0 .0 100.0
Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected ItemTotal Correlation Cronbach's Alpha if Item Deleted
19
Factor analysis
KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig. .676 454.907 171 .000
20
Extraction Sums of Squared Loadings % of Total Variance 21.099 10.126 9.309 8.448 Cumulative % Total Rotation Sums of Squared Loadings % of Variance 17.468 11.626 10.085 9.804 Cumulative % 17.468 29.093 39.178 48.982
Cumulative %
21.099 4.009 31.225 1.924 40.534 1.769 48.982 1.605 55.792 61.227
4 5 6
21
Component Matrixa Component 1 Age of Respondent Level of education Monthly Salary Usage of Internet Notice of internet advertisement most important attribuites in the perception of internet users do you like Internet advertisement? help and getting information regarding products and services attention to the internet advertisement Reputation of the company distract the attention of internet user Trust on internet advertisement information help to make purchase decision internet advertisement make you feel offended misled by internet advertisement Confortable while purchasing through internet advertisement phone number and address. .433 .473 .672 .407 .608 .662 .425 -.425 .731 .705 .622 .639 .489 .362 -.379 2 .689 .607 .799 -.377 .399 3 4 .351
22
Promising that provide of same quality and performance reflects in internet advertisement. .587 Extraction Method: Principal Component Analysis. a. 4 components extracted.
Rotated Component Matrix a Component 1 Age of Respondent Level of education Monthly Salary Usage of Internet Notice of internet advertisement most important attribuites in the perception of internet users do you like Internet advertisement? help and getting information regarding products and services attention to the internet advertisement Reputation of the company distract the attention of internet user Trust on internet advertisement information help to make purchase decision internet advertisement make you feel offended misled by internet advertisement Confortable while purchasing through internet advertisement phone number and address. advertisement result in lower prices advertised brand give better value for money than unadvertised brand Promising that provide of same quality and performance reflects in internet advertisement. .546 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 6 iterations. .677 .652 .655 .488 .536 .351 .654 .807 .540 .357 .378 .669 .435 .788 .691 .601 .383 .676 2 3 4 .791 .690 .812
23
3 4
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.
24
Estimate .61771
.118
25
Coefficientsa Model Unstandardized Coefficients B 1 (Constant) Demographic Perception Indignity a. Dependent Variable: Attitude 2.220 -.016 .258 .134 Std. Error .386 .092 .090 .088 -.017 .287 .152 Standardized Coefficients Beta t 5.757 -.176 2.877 1.528 Sig. .000 .861 .005 .130 .987 .962 .974 1.013 1.039 1.026 Collinearity Statistics Tolerance VIF
CollinearityDiagnosticsa Model Dimension Variance Proportions Eigenvalue Condition Index (Constant) Demographic Perception Indignity 1 1 2
dimension0 dimension1
3 4
26
1) Question: Are there difference among the education level of respondents on their attitude towards internet advertising? Dependent variable: Attitude Independent variable: Education level
ANOVA attitude Sum of Squares Between Groups Within Groups Total .378 34.992 35.370 df 2 93 95 Mean Square .189 .376 F .502 Sig. .607
27
The result shows that there is no difference of means of respondent level of education towards their attitude of internet advertising due the insignificant value = .607 > 0.05.Therefore we accept the null hypothesis and conclude that the no difference among the level of education of respondent is the same in all three categories.
Multiple Comparisons attitude Tukey HSD (I) Level of education (J) Level of education 95% Confidence Interval Mean Difference (I-J) Std. Error Sig. Lower Bound Upper Bound undergraduate
dimension3
graduate Postgraduate
.17161 .591 .17235 .870 .17161 .591 .13982 .830 .17235 .870 .13982 .830
graduate
dimension2 dimension3
undergraduate Postgraduate
Postgraduate
dimension3
undergraduate graduate
Through above table the result shows that all categories have no differences means.
Homogeneous Subsets
attitude TukeyHSD
a,b
Level of education N
28
19 38 39
graduate Sig.
Means for groups in homogeneous subsets are displayed. a. Uses Harmonic Mean Sample Size = 28.684. b. The group sizes are unequal. The harmonic mean of the group sizes is used. Type I error levels are not guaranteed.
In the above table result is still insignificant which is = .554 >0.05, It shows there is no difference in between level of education of respondent means.
29