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CHAPTER - 1

INTRODUCTION

Internet is fast emerging and a powerful medium for advertising in the


new millennium. Ten years ago, the newest medium was television. Currently
it is Internet. There is some evidence that television audience are migrating to
the internet. It is expected that there would be 237 million internet users in
India.

The internet is playing an increasingly important role in marketing


communication. Marketers use internet for a variety of communication tasks:
promoting consumer awareness and interest, providing information and
consultation, facilitating two way communications with consumer through e-
mail and chat rooms, stimulating product trial, enabling customers to place
orders, and measuring the effectiveness of specific advertising or promotional
campaigns. Firms can market through their own web sites and place
advertisement on their sites. Advertising on the web allows companies to
supplement conventional communications channels at a reasonable cost. But
with any of the elements of the marketing communication mix, Internet
advertising should be part of an integrated, well designed communication
strategy.

Internet advertising is becoming a part of some companies marketing


strategy- however it requires new strategies and thinking. The benefits of
online advertising is its ability to cover people from different geographical
area with varied tastes and preferences.

Advertising communication can be conveyed through various mass


media which include traditional media such as TV, broadcasting, magazines
and newspapers. In addition, Internet industry becomes a new medium for
businesses, especially provides a new living space for the growth and
development of enterprises. Therefore, online advertising is a new type of
advertising. It has been explored since the information explosion is coming. It
is also one of the marketing communication tools. When it comes to the
effects of advertising, they are considered to be an investment in a long term
process.

Need and Importance

Online advertising is growing in popularity for many businesses to promote


their products and services on the internet. With more and more of the
worlds population looking to internet for news and information, it is wonder
that businesses are increasingly led to advertise online. It is cost effective and
allows businesses a way to give more information to potential customers than
most traditional forms of broadcast and publications. Online advertisement
technology advances are being made every day that enhances what visitors
would like to see.Here review of literature revealed that though there are
number of studies pertaining to advertisement&itseffectiveness,there is no
study onEFFECTIVENESS OF ONLINE ADVERTISING ON ONLINE
PURCHASING BEHAIVOUR OF YOUTH IN VANDANMEDU
PANCHAYATH.The study is very relevant because it can give a clear picture
of the future of online advertising and the emerging trends in this particular
field. This study was conducted in order to know the effectiveness of online
advertisement in influencing the online shopping habits of people.
Statement of the Problem

In early days of internet, online advertising was mostly prohibited. More


recently, companies have sought to merge their advertising messages into
editorial or valuable services. Due to the emergence of convenient social
communication systems, 90% of all purchases made are influenced by social
media. It was certainly a sad day for newspapers and magazines when e-
Marketer released a report early in 2012 stating that this year would be the year
that spending for online advertising would surpass spending for print
advertising. Print publishers, of course, knew that this day was coming. This is
a study on the level of effectiveness of online advertisement in influencing the
online purchasing behaviour of people. It clearly shows the factors of online
advertisement that affect the purchase decision of customers.

The project entitled as Effectiveness of online advertising on online


purchasing behavior of youth in vandanmedu panchayath aimed to identify
answer to the following issues. Are the youth in vandanmedu panchayath is
aware about the various online advertisements ,why they are checking online
advertisements, which are the sites they visit more, which are the factors that
prompt them towards watching an online advertisement.

Objectives

1. To analyze the awareness of online advertisement among customers.

2. To ascertain the reasons for which customers check online advertisement.

3. To assess the popularity of websites regarding online advertisements.

4. To analysis the major problems faced by customers when they do online


purchase .
5. To give suitable suggestions based on findings of the study

Scope of the Study

The study is conducted to find out whether online advertisement is


effective in influencing potential buyers purchasing behavior of youth in
vandanmedu panchayath.Under this study the awareness level, effectiveness,
problems and major factors to attract the customers are to be examined. On
the basis of the study, the companies who concentrate on online
advertisement more than other types of advertisements can understand the
awareness level and problems faced by the customers. Then they can take
necessary steps to control them and promote the advertisements among
customers. The study is limited to vandanmedu panchayath,idukki. the data is
collected from the respondents having the age between 15 to 30

Period of the Study

This study was conducted during the period of january 2017 to march
2017.

Methodology of the study

a)research design

the study is a quadratic research based on primary data collected from youth
in vandanmedu panchayath

b)source of data
the study uses both primary and secondary data.primary data is collected
through structured questionaire and secondary data is collected from
books,websites,and journals.

c)sampling design and sample size

the researcher has selected 70 samples of youth from vandanmedu


panchayath.the sampling method adopted is convenience sampling.

d)tools of collecting data

the data is collected from the samples using structured questionaire

e)tools of analysis and interpretation

the primary data is analyzed with the help of mathematical tools like
percentage and mean. tables and graphs are used to present the data.

Limitations of the Study

1. The sample size is limited to 70 customers, Hence the result of the study
cannot be taken as universal.

2. This being an academic study, it suffers from time and cost constraints

3. The study was conducted only in vandanmedu panchayath, idukki


District of Kerala and therefore several other potential samples from
outside were neglected.

4. Due to the busy schedule of the respondents some of them were reluctant
to answer the questionnaire.

Chapterisation

The study is presented in four chapters as stated below


The first chapter includes introduction, importance of the study, problems
statement, objectives of study, methodology and limitations of the study.

The second chapter gives an overview of online advertisement and purchasing


behavior of customers.

The third chapter gives the analysis and interpretation of responses.

The fourth and final chapter consists of findings, suggestions and conclusions
of the study.

CHAPTER -TWO

Theoretical Framework

Advertisement

Meaning

Definition: Advertising is a means of communication with the users of a


product or service. Advertisements are messages paid for by those who send
them and are intended to inform or influence people who receive them

Advertising Association of the UK.

Advertising is always present, though people may not be aware of it. In


today's world, advertising uses every possible media to get its message through.
It does this via television, print (newspapers, magazines, journals etc), radio,
press, internet, direct selling, hoardings, mailers, contests, sponsorships, posters,
clothes, events, colors, sounds, visuals and even people (endorsements).

The advertising industry is made of companies that advertise, agencies that


create the advertisements, media that carries the ads, and a host of people like
copy editors, visualizes, brand managers, researchers, creative heads and
designers who take it the last mile to the customer or receiver. A company that
needs to advertise itself and/or its products hires an advertising agency. The
company briefs the agency on the brand, its imagery, the ideals and values
behind it, the target segments and so on. The agencies convert the ideas and
concepts to create the visuals, text, layouts and themes to communicate with the
user. After approval from the client, the ads go on air, as per the bookings done
by the agency's media buying unit.

History

Egyptians used papyrus to make sales messages and wall


posters. Commercial messages and political campaign displays have been
found in the ruins of Pompeii and ancient Arabia. Lost and found advertising
on papyrus was common in Ancient Greece and Ancient Rome. Wall or rock
painting for commercial advertising is another manifestation of an ancient
advertising form, which is present to this day in many parts of Asia, Africa,
and South America. The tradition of wall painting can be traced back to
Indian rock art paintings that date back to 4000 BC. History tells us that Out-
of-home advertising and billboards are the oldest forms of advertising.

As the towns and cities of the Middle Ages began to grow, and the
general populace was unable to read, signs that today would say cobbler,
miller, tailor or blacksmith would use an image associated with their trade
such as a boot, a suit, a hat, a clock, a diamond, a horse shoe, a candle or even
a bag of flour. Fruits and vegetables were sold in the city square from the
backs of carts and wagons and their proprietors used street callers (town
criers) to announce their whereabouts for the convenience of the customers.

As education became an apparent need and reading, as well as


printing, developed advertising expanded to include handbills. In the 18th
century advertisements started to appear in weekly newspapers in England.
These early print advertisements were used mainly to promote books and
newspapers, which became increasingly affordable with advances in
the printing press; and medicines, which were increasingly sought after as
disease ravaged Europe.

Online Advertising

Internet advertising whose goal is to drive customers to your website


or location(s), or to make a call regarding your products or services. Online
advertising, also called Internet advertising, uses the Internet to
deliver promotional marketing messages to consumers. It includes email
marketing, search engine marketing, social media marketing, many types
of display advertising (including web banner advertising), and mobile
advertising. Like other advertising media, online advertising frequently
involves both a publisher, who integrates advertisements into its online
content, and an advertiser, who provides the advertisements to be displayed
on the publisher's content. Other potential participants include advertising
agencies who help generate and place the ad copy, an ad server who
technologically delivers the ad and tracks statistics, and advertising affiliates
who do independent promotional work for the advertiser.

While traditional offline advertising is used by many companies to drive


customers to their websites, many businesses are trying online ads (such as
banners, pay-per-click ads, pay-per-call ads and pop-ups) in e-newsletters, on
compatible websites, on search engines and in online versions of newspapers
and magazines as a way of reaching people who use the internet for shopping
or to gather information.

While online advertising is still new to many, you can take heart in the
fact that the same design and content requirements and guidelines translate
well from traditional advertising to online ads. In fact, your newspaper print
ads can simply be duplicated in the online version of the publication you're
advertising in as long as you include a link to your website. Color, fonts, the
size of your ad(s) and your message will all play the same critical role in
getting your ads noticed and, more important, responded to. No one wants to
have to wade through too much text to understand an ad's message. So
present your message concisely and clearly, and relate it to an emotion or a
situation shared by the consumers you're trying to reach.

As with traditional ads, online ads must be placed where the right
people will see them ("right people" meaning the consumers you want to
reach). So choose your placements according to age and gender, interests,
hobbies, and all the psychographic (income, education, hobbies, etc.)
information you use when you're buying ads in television, print or radio. It's
especially easy to do this with newsletters and online versions of popular
magazines because they'll each have a particular audience to deliver, as do
websites that cover particular hobbies, careers, medical information, vacation
spots and so on. Remember, no matter what you sell, you have to find sites
that are complimentary or closely related to your products. If you sell dishes,
for example, you might look for sites about entertaining, decorating, homes
and gardens, flower arranging or distinctive glassware.

Focus groups can help you determine the look of your ads so they attract
the consumers you really want to reach. Attracting the eye comes first--keep
in mind that what they see reflects directly on your company. Be sure that
when they get to your site or call you, they're not disappointed with that
"next step." Your site must load quickly, be easily navigated, and not require
too many forms to complete or entail too many steps to get to the final order
or check out or call. People answering your phones must be informed, helpful,
quick and able to accurately capture information, take orders and offer
information on other products or services you have available.

Pay-per call ads are new, but think of how appealing this is for a
consumer or prospective client who needs an answer now or needs to make a
purchase now to be able to make a quick call and take care of their pressing
need, rather than clicking on a banner and being led to your website where
they may need to fill in a registration form and then send you an e-mail and
wait for a reply.

Pop-up ads have become more hated than calls from telemarketers--
and like "remove my number" efforts, more and more people are purchasing
pop-up-blocking software to minimize the aggravation. If you use this form of
online advertising, you risk the transfer of the distaste people feel directly
from your ad to your company. Why would you want to do that? The best way
to decide what type of online advertising to do is to consider your own
experiences with online ads. Which ones made you want to throw your
stapler at the monitor? Which ones did you click on?

And be sure that any sites you advertise on have a good reputation
themselves and aren't selling ad space to unsavory companies you wouldn't
want to be associated with. Don't forget that your branding efforts extend to
your online advertising, and every contact with the public either builds your
brand or tears it down.

And make it easy on your customers: It's essential that you allow
anyone to easily opt-out of any e-mail marketing you do so your efforts don't
turn into spam. It's also essential that you provide ways for people to return
purchases, either to a brick-and-mortar location or through shipping it back to
you. Answer complaints promptly and make consumers happy, whenever
possible, with a speedy apology, a refund, a discount on future purchases or
an exchange. Not everyone shops online; many still don't trust it as a form of
legitimate commerce. Like any emerging venue, online shopping must prove
itself to each user, and where your online ads take them is where it all starts.

Online advertising is advertising carried out in the online environment.


It is a form of promotion that uses the Internet and 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, Social network advertising, interstitial ads, online classified
advertising, advertising networks and e-mail marketing, including e-mail spam.
Many of these types of ads are delivered by an Ad server.

Online advertising is similar to other forms of communication except


for one critical difference that is the internet. Consumer behavior follows a
model radically different from traditional advertising media. This model can be
explained as the progression Awareness-Interest-Desire-Action. All these
activities occur simultaneously in internet advertising. Online advertising
entails, placing of electronic messages on a Website or email platform which
achieves the following purposes.

Generates awareness for the brand.

Stimulates interest / preference for a product or service.

Provides the means to contact the advertiser for information or to


make a purchase.

Advantages of Online Advertisements

1) Wider Coverage.
The online advertising gives the ads a more wider coverage and this
globally wider coverage helps in making the advertisements reach more
audiences, which may ultimately helps in getting better results through online
advertising campaign.

2) Targeted Audiences

When compared with offline advertising, online advertising always


helpful to reach the targeted audience and this helps in making the campaign
more profitable and getting more relevant leads.

3) Affordable.

Another main advantage of online advertising or marketing is the much


affordable price when compared with the traditional advertising costs. With a
much lesser cost we can advertise on the net for a wider range of audience and
geographical locations.

4) Easy to Track and Measure Conversion.


Measurability and easiness to track the conversion makes online
advertising miles ahead on the traditional advertising methods. A lot of
effective analytics tools are available to measure online advertising campaigns
which help in more improvisation of the ads.

5) Speed.

Online advertising is much faster than offline advertising and we can


start sending out ads to a wider audience, at the moment of starting
advertising campaign.

6) Informative.

In online advertising, the advertiser is able to convey more details about


the advertisement to the audience and that too at relatively low cost. Most of
the online advertising campaigns are composed of a clickable link to a specific
landing page, where users get more information about the product mentioned
in the advertisement.

7) Flexible Payment.

Payment flexibility is another added advantage of online advertising and


marketing. In offline advertising you need to pay the full amount to the
advertising agency irrespective of the results. But in online advertising there is
the flexibility of paying for only qualified leads, clicks or impressions.

8) Better Return On Investment (ROI)

Since online advertising is mainly focused on performance based


payment, your ROI is sure to be far better when compared with offline
advertising.

9) Easy Audience Engagement

Online advertisement makes is easy for the audience to engage with your
ads or products. As an advertiser we would be able to get more feedback from
the audience and thereby improve the quality of our ads going forward.

10) Better Branding

Any form of advertising helps in improving the branding and online


advertising stands a notch high in improving the branding of your company,
service or product.

11) Exposure

For many seller companies with limited budget the www (World Wide
Web) enables them to gain exposure to potential customers that heretofore
would have been impossible. For a function of the investment that would be
required using traditional media, companies can gain national and even
international exposure in a timely manner.

12) Creativity

Creatively design sites can enhance company's image leading to repeat


visits, and positively position the company or organization in the consumer's
mind.

Limitations of Online Advertisements

1) Scope

It is a "limited" market that can be conquered, if we only use the Internet


for advertising display. Now more and more people every day are going into
the use of technology and surfing the World Wide Web. But majority of the
average consumers are still depending on the older forms of advertising as a
means to gather information on certain products and services.

2) Additional costs

If we decided to rent the help of a professional, a freelancer or a company


for the production of our site for advertising the product or service, of course
its cost will be more.

3) Measurement problem

One the greatest disadvantage of the net is the lack of reliability of the
research numbers generate. A Quick review of forecasts, audience profiles,
and other statistics offered by research providers will demonstrate a great deal
of variance leading to a serious lack of validity and reliability.

4) Audience characteristic
Due imparts to the accelerating growth of the net, audience characteristic
change quickly. Numbers reported may be completed quickly and are often
vary from one provided to the next.

5) Web Snarl

At times, downloading information from the net takes a long time.


When there are a number of users, the time increasing and some Sites may be
inaccessible due to too many visitors. For many users who expect speed, this
is a major disadvantage

6) Limited production quality

Although it is improving, net advertising does not offer the capability of


many competitive media for a production standpoint. While the advent of
advanced technologies and rich medium is narrowing the gap, the net still
lags behind some areas.

7) Poor reach

While the Internet numbers are growing in leaps and bounds, its six is
still far behind that of television. As a result, interest companies have turned
to traditional medium to achieve reach and awareness goals. In addition
statistics says that only a small percentage of sites on the Internet are
captured and that the top 50 sites listed account for 95 percent of the site
visited.

8) Language

If I am selling the goods through the media the buyer prefer to get the
information of the products or services with his own language but the
advertiser has no option than to advertise in one single language which is a
major disadvantage.

Trends in Online Advertisement


a) Mobile Technology

The drastic decrease in rates of 3G phones have made them affordable


for the common man. With figures indicating increase in data services from
mobile phones, there lays a scope of building up a partnership between media
buyers and mobile content providers. The future holds well here because
presently a few companies have successfully followed this in recent times
with the introduction of mobile coupons, product campaigns, click to call
services etc.

b) Virtual Communities

The popularity of social networking communities have started acting as a


paradise for online advertisers because these communities bridge the
distances between old friends, bring together people with same interests etc.
People keep on coming back to these sites and therein the advertiser extends
the scope of its services and generates revenue.

c) Spreading the word

This is purely intentional in nature and is deliberately done to increase the


target audience. This is also termed as Viral Marketing and occurs through
word of mouth which results in a buzz being created about the advertisement.
The first step in advertising i.e. attracting your audience takes place through
this and then after the chances of a sale increase significantly.

d) Advertisement Customization

The biggies in this space will soon implement this personalization of ad


concept to specific users. Extensive data analytics can reveal the details about
a prospective user and thus the advertiser can customize its ad services
keeping in mind the users needs, wants and desires.
Types of Online Advertising

Online advertising methods ensure the most effective and cost- Efficient
media for campaign goals. The major online ad forms are

1. Text Advertisements
Advertisements displayed as simple, text-based Hyperlinks are known as
Text Advertisements. As their name suggests, text ads they do not include
graphic images. Text ads are sold on non-search websites and can be served
either by individual websites, or a publishers own ad servers.

2. Display Advertisements
Graphical advertisements featured on websites are known as Display
Advertisements. Display advertisements are often available in many
standard shapes and sizes, including: banners, leader boards, skyscrapers,
large boxes, and other sized graphical ads. Display ads use eye-catching
visuals to quickly grab catch the attention of website visitors browsing the
pages on which they are featured.

3. Pop -Up Advertisements


Advertisements that appear to pop up in a new window as users
browse a website are known as Pop-Up advertisements. Hove
advertisements , floating advertisements and slide-in advertisements are
all considered pop-up ads. The use of Flash and DHTML ads has risen in
recent years in an effort to counter the increased usage of pop-up blockers.

4. Flash / DHTML Advertisements


These kinds of ads incorporate Flash animation or other motion
graphics. Advertisements may be animated display advertisements in more
traditional shapes and sizes, or, as of late, they can be sophisticated ads that
function similarly to pop-up ads but with much deeper integration into the
overall design of the site.
5. Interstitial Advertisements
Interstitial ads appear between web pages that the user requests. For
example, an interstitial ad may appear after you click on a link in an excerpt
to view the full content of news story. Because interstitial advertisements
load in the background and do not interrupt the users immediate browsing
experience, they are a preferred method of delivering ads with rich media,
streaming video and large graphics.

6. Video Advertisements
With the popularity of online video watching, video advertisements
have become a viable means of distributing rich advertising content.
Currently video ads can either be content created entirely by the advertiser,
or in video ads that will show your ad within a video. Major search
properties like Google (through YouTube), MSN, Yahoo, and AOL all offer
advertising on their video websites.

7. Email Advertisements (Classified Ads & Newsletter Advertising)


Advertisements that are distributed by a publisher through email blasts
to opt-in audiences are known as email advertisements.

8. On-Site Sponsorships
On-Site sponsorships are ads (typically just a companys logo) that can
be bought on individual websites. Sponsorship ads typically appear in an
area on the website reserved for sponsors and often noted as such.

9. Advertorials
Advertisements in editorial form that appear to contain objectively-
written opinions are known as paid editorial ads, or Advertorials. Online
advertorials are typically featured on publishers websites and promote
products and services related to the websites content. Some ad networks
will develop, optimize, and write youre advertorial and place it on their ad
network.
10. Pay-Per-Click (PPC) Marketing or Search Engine Marketing
This type of online advertising involves purchasing text
advertisements and banner ads and having those ads show as sponsored
results with a link to your website when certain keywords or phrases are
searched for. You would purchase this type of Internet advertising from
Google advertisement Words.

Ethics of Online Advertising

Web developers often display advertisements to the visitors to earn


money. But advertisers should follow certain ethics when giving out
customer data to advertising services.

1. Privacy Statement

A website dealing with client data should always display a privacy


statement that is easily noticeable to the user. It must state in clear words
what rights it reserves with the data supplied. In case the data is used, a
statement should be made available to the client proclaiming that the
website reserves all rights to use the supplied data in a way as and how they
wish to.

2. Safety of Personal Information

Personal information such as telephone numbers, addresses and


passwords should not be revealed to the advertising service, since this
grossly breaches privacy of a client. Such data must be stored with proper
security. Clients should be made aware that their personal information is not
used, this increases customer trust.

3. Content should be more important

Advertisements must not be obtrusive and imposing on the user, and


web designers must make it a priority to serve the contents demanded by
the client in a way that it assumes prime importance in a web page and is
easily available.

Buying Behavior

Buyer

A buyer is any person who contracts to acquire an asset in return for


some form of consideration. A buyer's primary responsibility is obtaining the
highest quality goods at the lowest cost.

Definition of buying behavior

Buying behavior is the decision processes and acts of people involved in


buying and using products. It is the sum total of a consumers attitudes,
preferences, intentions, and decisions regarding the consumers behavior in
the market place when purchasing a product or service.

Stages of the Consumer Buying Process

Six Stages are involved in the Consumer Buying Decision Process.


Actual purchasing is only one stage of the process. All decision processes
need not lead to a purchase. All consumer decisions do not always include
all 6 stages. The 6 stages are:

1. Problem Recognition (awareness of need)

It is the difference between the desired state and the actual condition
or deficit in assortment of products.

Eg. Hunger - Food. Hunger stimulates your need to eat.

2. Information search

A successful information search leaves a buyer with possible


alternatives. The information consists of
I. Internal search, i.e., memory.

II. External search is essential if we need more information. It may be


from Friends and relatives (word of mouth). Marketer dominated
sources; comparison shopping; public sources etc.

3. Evaluation of Alternatives

Buyer need to establish criteria for evaluation, that means features the
buyer wants or does not want. Next Rank/weight alternatives or resume
search. Information from different sources may be treated differently.
Marketers try to influence by "framing" alternatives.

4. Purchase decision

In this phase the buyer choose buying alternative, includes product,


package, store, method of purchase etc.

5. Purchase

Actual purchase is happening on the basis of product availability.

6. Post-Purchase Evaluation

The outcome of the purchase should be Satisfaction or


Dissatisfaction. Dissatisfaction can be reduced by warranties, after sales
communication etc.

Factors influences buyer behavior.

Consumer purchases are influenced strongly by the following four factors.

1. Cultural Factor

2. Social Factor
3. Personal Factor

4. Psychological Factor.

1. Cultural Factors

a) Culture

. Culture is the most basic cause of a persons wants and behavior.


Every group or society has a culture, and cultural influences on buying
behavior may vary greatly from country to country.

b) Sub Culture

A group of people with shared value systems based on common life


experiences and situations. Each culture contains smaller sub cultures a
group of people with shared value system based on common life
experiences and situations. Sub culture includes nationalities, religions,
racial group and geographic regions. Many sub culture make up important
market segments and marketers often design products.

c) Social Class

Almost every society has some form of social structure, social


classes are societys relatively permanent and ordered divisions whose
members share similar values, interests and behavior.

2. Social Factors

a) Groups

Two or more people who interact to accomplish individual or mutual


goals. A persons behavior is influenced by many small groups. Groups that
have a direct influence and to which a person belongs are called
membership groups. Some of the primary groups include family, friends,
neighbors and co-workers. Some are secondary groups, which are more
formal and have less regular interaction. These include organizations like
religious groups, professional association and trade unions.

b) Family

Family members can strongly influence buyer behavior. The family is


the most important consumer buying organization society and it has been
researched extensively. Marketers are interested in the roles, and influence
of the husband, wife and children on the purchase of different products and
services.

c) Roles and Status

A person belongs to many groups, family, clubs, and organizations.


The persons position in each group can be defined in terms of both role and
status. For example. M & X plays the role of father, in his family he plays
the role of husband, in his company, he plays the role of manager, etc. A
Role consists of the activities people are expected to perform according to
the persons around them.

3. Personal Factors

i) Age and Life cycle Stage

People change the goods and services they buy over their lifetimes.
Tastes in food, clothes, furniture, and recreation are often age related.
Buying is also shaped by the stage of the family life cycle.

ii) Occupation

A persons occupation affects the goods and services bought.


Blue collar workers tend to buy more rugged work clothes, whereas white-
collar workers buy more business suits. A Co. can even specialize in
making products needed by a given occupational group. Thus, computer
software companies will design different products for brand managers,
accountants, engineers, lawyers, and doctors.

iii) Economic situation

A persons economic situation will affect product choice

iv) Life Style

Life Style is a persons Pattern of living, understanding these


forces involves measuring consumers major AIO dimensions. i.e. activities
(Work, hobbies, shopping, support etc) interest (Food, fashion, family
recreation) and opinions (about themselves, Business, Products)

v) Personality and Self concept

Each persons distinct personality influences his or her buying


behavior. Personality refers to the unique psychological characteristics that
lead to relatively consistent and lasting responses to ones own
environment.

4. Psychological Factors

a) Motivation

Motive (drive) a need that is sufficiently pressing to direct the person


to seek satisfaction of the need

b) Perception

The process by which people select organize and interpret information


to form a meaningful picture of the world.
c) Learning

Change in an individuals behavior arising from experience.

d) Beliefs and attitudes

Belief is a descriptive thought that a person holds about


something. Attitude is a Persons consistently favorable or unfavorable
evaluations, feelings, and tendencies towards an object or idea etc.

Online advertising has to offer

1. Scalability - Like television commercials, it doesn't cost very much to


increase the reach of an online ad campaign. There is no need to print
additional copies of a magazine, or to create and mail direct-mail pieces.

2. Hot demographics - The online community is more affluent, better


educated, and younger and more willing to spend than the population at
large. More and more people go online and the number is ever increasing

3. Targeted messages - Unlike broadcast and print media, the Internet


allows advertisers to target exactly who will see their ads, and in what
context. Web publications serve every conceivable audience, from the mass
market obscure niche groups. Beyond that, the technology leads target
customers by their computing platform (PCs or Macintoshes), Web browser
(specific versions of Netscape Navigator or Microsoft Internet Explorer),
domain type (. com, .edu, .gov, .mil, or .net) or individual domains
(America Online, IBM, Prodigy).

4. Broad and flexible reach - While the Net cannot yet match television's
market penetration, the size of the online audience is growing very quickly.
More importantly, because you buy online ads by the impression, you can
buy as much or as little of that audience as you desire. And that's true no
matter how popular or specialized the site on which your ads run- as a rule,
advertising costs depend on how many impressions you buy, not on the size
of a site's audience.

5. Cost-effective - Partly because you pay only for exactly what you're
getting, online advertising can be extremely competitive with other forms of
advertising. If you buy 1,000 ad impressions, for example, you know that
exactly 1,000 people will see your advertisement.

6. Detailed tracking and measurement - Compared to online advertising,


traditional media advertising is like shooting in the dark. The Web allows
advertisers to gather detailed information on who saw an ad, when, in what
context, how many times and so on. Better still; you get this information
instantly, not weeks later when it's too late to adjust your campaign. Of
course, not every site currently provides this level of feedback, and not
every advertiser knows what to do with it. Over a period of time, however,
this is likely to become one of Web advertising's most important
competitive advantages.

7. Detailed tracking and measurement - Compared to online advertising,


traditional media advertising is like shooting in the dark. The Web allows
advertisers to gather detailed information on who saw an ad, when, in what
context, how many times and so on. Better still; you get this information
instantly, not weeks later when it's too late to adjust your campaign. Of
course, not every site currently provides this level of feedback, and not
every advertiser knows what to do with it. Over a period of time, however,
this is likely to become one of Web advertising's most important
competitive advantages.

8. Good Creativity - Creative Design of Home page is very important for


the surfer to get hooked on to the site. Within seconds the user should get an
idea about the site and where to go within it. If the opportunity is missed the
user many never return.