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Republic of the Philippines

Commission on Higher Education

ICCT Colleges Binangonan

“THE EFFECTS OF ADVERTISEMENT TO THE ONLINE CONSUMERS”

Submitted by:

Grade 12 – OLSHBNM1 (ABM)

Quantitative Research in Daily Life

Professor Anna Ruth De Guzman

27, October 2021

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APPROVAL SHEET

This research entitled "The Effects of Advertisement to the Online Consumers"

submitted by Grade 12 - OLSHBNM1 ABM Students of ICCT Colleges

Binangonan Campus in partial fulfillment for the subject in Practical Research 2;

Quantitative Research in Daily Life has been examined and hereby

recommended for approval and acceptance.

Prof. Anna Ruth De Guzman

Research Adviser

____________________ ____________________
Panelist Panelist
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ACKNOWLEDGEMENT

We, the researchers, would like to express our deepest gratitude to everyone

who assisted and participated in making our research study a success. This

research would not be completed without their participation:

To our research professor Ms. Anna Ruth de Guzman, for giving us

the opportunity to conduct this research. Her dynamism, vision, sincerity,

and motivation have deeply inspired us.

To the members of our group and respondents who sacrifice their

time and gave their efforts to complete the realizations on our survey, and

for giving us an overwhelming information about the topic, they are also

the inspiration that motivate others to not give up.

For our own parents, who gave us inspiration, constant support, for

giving us a tranquil dwelling place to do this research, we are extremely

grateful for all their sacrifices.

Praises and thanks to God, who has granted countless blessing

and for giving us knowledge and wisdom enough to finish out this

analysis. We appreciate your efforts in assisting us in finishing the study

on our behalf. Our deep gratitude will live on in our hearts forever, and we

will never forget it.

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DEDICATION

This research study is dedicated to everyone who helped and contributed to the

successful completion of this conducted study by Grade 12 ABM Students.

To all our friends, classmates, along with family who have shared

their ideas and provided us with moral, emotional, and financial support

during our research.

To our Professor, it was a great privilege and honor to work and

study with her guidance. We are grateful for what she had offered,

extending our heartfelt thanks for the assistance and determination she

gave us.

This is also dedicated for the future researchers that might find our

research a valuable source of information, it would help them to be a

better analyst and use this study as the guide or reference for their

continued impact of knowledge.

We dedicated this research to Almighty God, our savior and source

of inspiration, for giving us wisdom and strength, and guidance from the

beginning to this point.

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ABSTRACT
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TABLE OF CONTENTS
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LIST OF FIGURES AND TABLES

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CHAPTER 1: THE PROBLEM AND ITS BACKGROUND

1.0 Background of the Study

The existence of technology changed the world and the perspective of

every person as well as the daily life of everyone. It's undeniable that the

technology makes the human lives easier most specially when it comes on

purchasing or buying daily needs. Many ways of promoting foods, luxury,

clothes, shoes, etc., starts to exist specifically a short video that showcase

a brand either new or even old which is called "Advertisement" or "Ads" for

short.

1.1 What is Advertising?

Advertisement is one of the most visually appealing methods of attracting

customers. It is a type of commercial that promotes a product for sale. Ads

are somehow effective and very eye catching which makes us purchase

that product in an instant but as a wise customer/consumer we tend to

think twice if that certain product is legitimate or if it's really what it looks

like in the ads. The effect of different types of internet advertising helps to

shape certain attitudes, beliefs and perceptions among internet users.

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When they constantly see advertisements online, it can influence their

purchase decision to some extent.

1.2 The History of Advertising

According to the Story of Advertising by James Playsted Wood, “the first

known written ad in the history of advertising was found by archeologists

in the ruins of Thebes, known to the ancient Egyptians as Waset”. (Please

refer to Figure 1 below.

Figure 1: The First Advertising Written in Papyrus 5000 Years Ago

David Ogilvy He was a British Advertising Tycoon in the 1950s, David

Ogilvy founded the prestigious Ogilvy & Mather Agency in New York City,

and is known as the "Father of Advertising." The development of printing

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in the 15th and 16th centuries was the first step toward modern

advertising. Weekly newspapers in London began to carry advertisements

in the 17th century, and by the 18th century, such advertising was thriving.

1.3 The Philippine Advertisement History and Evolution

On 1900, the first advertisement in the Philippines was aired using Radio

Broadcast. By the time of 1950 on October 23, 1953, DZAQ-TV, the first

fully licensed commercial television station in the Philippines, began

commercial television operations. During the 1960's, ABS-CBN was the

first television network to broadcast certain programs in color, beginning in

1966. And from 1970's up to 2000's, the Marcos administration's reign had

a significant impact on advertising. To prevent the airing of rebellious

propaganda, every major television and radio network in the country, as

well as publishing houses, were either closed down or placed under

military control. Foreign citizens and entities are not permitted to own and

operate media companies in the Philippines. Mobility has evolved from a

luxury to a necessity for the general public. Advertising on Wi-Fi enabled

mobile devices like notepads, smart phones, and E-Book readers has

grown in popularity. (See figure 1 below for a timeline diagram).

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Figure 2. The Advertisement Evolution in Timeline Diagram.

As presented, research shows that there are many ways to see an

advertisement in a variety of watching, hearing, or seeing it on papers and

streets. Advertisement can be divided into four categories; display

advertising, video advertising, mobile advertising, and native advertising.

This proves that different advertisement strategies are made because

some past researchers considered advertising as an effective way of

selling and introducing a product. The following are reviews of major

research work on the topic which is related to the present study:

Maheshwari, Seth & Gupta (2016) in their article, “An Empirical

Approach to Consumer Buying Behavior in Indian Automobile

Sector" has concluded that advertisement effectiveness positively

influences consumer buying behavior.

Ha, John, Swinder & Muthaly (2011), in their research paper "The

Effects of Advertising Spending on Brand Loyalty in Services" have

discovered that advertising spending has impact on consumer’s

perceived quality of the product, consumer’s loyalty and satisfaction

level.
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Kumar & Raju (2013) in their paper “The Role of Advertising in

Consumer Decision Making” have found that advertisements are

able to change the consumer’s opinion about a particular product.

Basically, this research focuses specifically on the impact of

advertisement to the potential customers on decision making and what are

some factors that affect and influence the product selection. The goal of

this study was to determine what effect advertisement has on online

consumers, whether online consumers are more motivated by what they

see online, and whether the product is more credible if advertisement or

proof is seen. The researchers want to know how important advertisement

is to sales, and how it can attract more consumers.

2.0 Statement of the Problem

During these days, online businesses are continually arising in the midst

of Covid-19 Pandemic. Upon building new online businesses, the owners

must think for some possible things that might help them to increase their

sales. Therefore, they have come up to the idea of different marketing

strategies including the use of advertisements.

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This chapter presents the problem statement in this current study and has

an aim to analyze the effects and impacts of the use of advertisements to

online consumer’s thinking and curiosity to the promoted product. This

would help the researchers to justify the purpose of their research study

and to define clearly the goals of the said study. The researchers

conducted this study to have a better understanding about the said

research problem and to determine the possible effects of using

advertisements as a marketing strategy and how helpful is it to the

consumers who does shopping online.

In this section of our research paper, we will focus on providing an answer

to the following questions:

1. Are you one of the online consumers who’s mostly rely in

advertisements?

2. Does advertisement feed online consumers with the wrong

impression and unrealistic expectations?

3. As an online consumer, does an advertisement have attracted you

to buy product they are promoting?

4. Does advertising satisfy your curiosity about a certain product?

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5. Is there a significant relationship between the Advertisement to

Online Consumer?

6. Does the use of advertisements effective nowadays?

7. Do you often see advertisements survey while surfing the internet?

8. Where do you often see advertisements?

a. Facebook d. Websites

b. YouTube e. Mobile Applications

c. Billboards f. Television

9. On the scale of 1-10, do you think that the use of advertisements as

a strategy can help to boost the sales of online businesses?

10. Rate 1-10, do you think advertising can pass as a good marketing

strategy?

3.0 Significance of The Study

This study will help to determine what are the positive/negative effects of

advertisement to the online consumers and for them to have an insight on

the impact towards to their product selection.

For the Future Researchers. This study will provide them an

information. This may serve as their basis in conducting their

research related to this topic. For the Readers. This study will help
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the readers to become aware to those effects of advertisement to

their (online consumption/consuming).

For the Consumers. This study will help them to self-reflect for the

benefits and consequences of the advertisement for their reference

on online consumption.

For the Sellers. This study will give the seller an information on

how to increase the number of their customers and project a

positive image of the product that they are advertising to the

general public.

For the Researchers. this study will help the researchers prove

that advertisement can affect the preference of consumers to their

purchasing decisions.

4.0 Assumptions of The Study

This research entitled “THE EFFECTS OF ADVERTISEMENT TO THE

ONLINE CONSUMERS” is based on the following assumptions made

below:

1. Researchers assumes the positive and negative effects of

advertisements to the consumers.

2. The researchers assume the effect on advertisements on the

perspective of the consumers.

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3. The researchers assume if advertisements really help

consumers on deciding what to purchase.

4. Researchers assume that the advertisement is really helpful to

buyer.

5. The study assumes that advertisements create awareness of

the products and attracts more buyers.

5.0 Scope and Limitations of the Study

This study will look at the 'effects of advertising on the online consumer,' which is

growing every day, and will concentrate on who has access to advertising and

who will be the respondents. Assumptions are made that internet customers

have similar qualities.

The result of this discovery could be generalized based on these premises. This

research study is limited to online consumers for a topic like this that is expected

to elicit responses from a minimum of respondents across the Philippines.

Second, key textbooks were hard to come by in internet ads. Subsequently, the

researchers relied significantly on online textbooks, publications, and other

sources. Once again, the researcher relied solely on the questionnaire for data
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collection. This is a constraint because the study can be enhanced through a

Google Form Surveys to ensure that the findings are comprehensive.

Finally, the issue of financial and time constraints cannot be overemphasized, so

the researcher simply had to pay for the usage of the internet on a cellphone or

computer to access the necessary resources for the analysis.