ICCT Colleges of Binangonan

ICCT Bldg., National Road, Calumpang, Binangonan, Rizal

“THE EFFECTS OF ADVERTISEMENT TO THE ONLINE CONSUMERS”

Submitted by:

Grade 12 – OLSHBNM1 (ABM)

Quantitative Research in Daily Life

Ms. Anna Ruth De Guzman

December 2021

I
 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.

Ms. Anna Ruth De Guzman

Research Adviser

____________________ ____________________
Panelist Panelist

II
 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 and providing us the power and

courage:

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.

III
 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.

Aguirre, Mary Joanne M. - I solemnly dedicated this research to my family for

providing me a full support. They are my inspirations in life and the reason why I

am being motivated to study harder.

Aluan, Alyza Mae D. - I dedicate this research study to Jesus Christ, the one

who guided me in all the circumstances and gave me the knowledge, strength and

inspiration. As well as to my family and all of my friends who guided and

supported me from the first day until now.

Andres, Von Cyril D. - I would like to dedicate our work to my father, who works

hard for us to live and survive this pandemic. And to myself, as a part of it, making

it a milestone of learning.

Angeles, Mairadel S. - I dedicate this study to my beloved family that is always

there to support and guide me. I thank them for being my inspiration and strength

as I do this study. I also dedicated it to my friends, teacher, and classmates who

also guide and always remind me to do well. Lastly, I dedicated it to our Almighty

God, I thank you for the guidance and for giving me the power of mind that helps

a lot.

IV
Aragoncillo, Narrea P. - We humbly dedicate this research study to enhance the

knowledge of other online consumer about advertisement. We truly appreciate the

help of my other classmates to finish this research, and to Ms. Ruth thank you for

guiding us in doing this research

Aralar, Reyn Bianca - I wholeheartedly dedicated this research study to the ones

who supported me all throughout since day one, my family. they are the ones who

have been my inspiration and the ones who encourage me to strive harder and do

better.

Bagaporo, Rose Ann B. - To the creator of all things, our Almighty God, we

express our gratitude for the life, strength and knowledge and for us to make every

day possible to live. To our parents who support us financially, to our groupmates

who cooperated and shared their knowledge with us, to all our participants, and

lastly to our teacher, we are extending our appreciation to all of your efforts.

Bernardez, Jason E. - This study is for everyone who always watches

advertisements. This will help them to gain more knowledge and perspective about

advertisement.

Binadas, Antonette - I dedicate this research to the people in my life who have

shown me support and love, including my family, friends, and, of course, myself.

I appreciate what you all done; every time I felt like giving up, you all tapped me

on the back and encouraged me to keep going because you all believe in me.

Thank you for motivating me to achieve what I have and what I can achieved.

V
Blanco, Kyle - I hope this research help some of our dearest classmate and they

have understood something about research.

Campo,Joana Ellize A. - I dedicated this research to all who participate to pursue

and complete this research

Carausus, Jastine Mae D. - First and foremost, we want to thank God Almighty

for his blessing on our research project. I'd like to thank my teacher, Ms. Anna

Ruth de Guzman for allowing us to conduct research. Also, thank you to my

Leader, Mary Aguirre, for guiding us throughout the research process. As well as

the co-members who contributed to the success of our research.

Ceñal, Alexandra - I dedicate this research study to myself for not giving up when

things get too difficult, and I want to congratulate myself for putting in the effort to

complete it.

Dimitui, Kate - I lovingly dedicated this current research study to Almighty God,

who have been my constant source of inspiration. As well as to my family who

given me the courage and discipline to this research paper and make it with

determination and enthusiast. Without them, this project would not have been

made possible.

Fuentes, Azlee Mei C. - This research was wholeheartedly dedicated to my family

for their valuable guidance throughout my studies. You are always there for me.

Finally, I could not have completed this research without also the support of my

classmates.

VI
Granale, Althea Francell - I dedicate this research to God, who has blessed me

with knowledge and strength, as well as to myself for not giving up easy, and to

my family, who has always been supportive.

Hilis, Karla Mae - I dedicated this research study to my parents and friends whom

serves as my inspiration for completing the realizations of this research, especially

to Almighty God who have been there from the beginning up to this point.

Malik, Jovie - This research is dedicated to those people who have been

supported us throughout our education.

Mauricio, Ayesha Yanny C. -I dedicated this research to the people from the

beginning who have supported me and believed in my ability, especially to my

parents and friends who have always been by my side, who believed in me then

and until now they have been my guide and strength. and I am thankful to the lord

that I am always with him in all my battles, for students like me, success will also

replace all our efforts today.

Miralles, Precious D.A - I dedicated this research to the people who believed in

me that I could do it and to the people who guided me especially my family who

gave strength to my fellow classmates who are also facing this test so we can do

it thank you very much to the Lord who has the thickness to guide me from

beginning to end and especially with our teacher Ms. Ruth De Guzman.

Odang, Macy Francine - We dedicate this to the teachers who teaches us. And

to the people around us who continue to support us in the midst of online learning.

VII
Oliveros, Vennia Junice - This research is dedicated to our parents who have

never failed to give us financial and moral support, for giving all our needs during

the time we developed our system and for teaching us that even the largest task

can be accomplished if it is done one step at a time. We dedicate this project to all

the people who have worked hard to help us complete this research. And specially

to God who is our source of power in times that we feel down.

Paralejas, Micah Angela - I dedicated this to my family and friends who's always

there to support me in times that i feel like i can't do any better on making this to

happen. For encouraging and giving me an advice.

Pernacita, Janah - This research is devoted entirely to my classmates,

professors, and parents who has been a source of inspiration and strength

throughout our study, as well as continued to support and assist us. Above all, we

owe a special debt of gratitude to the Great Almighty, our savior and source of

wisdom and understanding.

Picones, Kurt Axl B. - I offer this study not only for myself but also for my family

and loved ones because they are the ones who give me the reason to pursue my

dream in life.

Villaflores, Keith Justin C. - This study is whole heartedly dedicated to my fellow

classmates, all teachers, and beloved parents who have been our source of

inspiration, strength and continued to support and guide us during our research.

Above all, special thanks to the Great Almighty, our savior and our source of

knowledge and wisdom.

VIII
ABSTRACT

IX
 TABLE OF CONTENTS

Page

TITLE PAGE…………………………………………………………………. I

APPROVAL SHEET………………………………………………………… II

ACKNOWLEDGEMENT…………………………………………………… III

DEDICATION PAGE……………………………………………………..... IV

ABSTRACT…………………………………………………………………. V

TABLE OF CONTENTS…………………………………………………… X

LIST OF TABLES/FIGURES……………………………………………… XIII

CHAPTER 1: THE PROBLEM AND ITS BACKGROUND

1.1 Background of the Study…………………………………… 1

1.1.1 What is Advertising?.............................................. 1

1.1.2 History of Advertising……………………………….. 2

1.1.3 Philippine Advertisement History and Evolution…. 3

1.2 Statement of the Problem………………………………….. 5

1.3 Significance of the Study…………………………………... 7

1.4 Assumptions of the Study………………………………….. 8

X
 1.5 Scope and Limitations of the Study…………………………. 9

1.6 Definition of Terms…………...………………………………. 10

CHAPTER 2: REVIEW OF RELATED LITERATURE AND STUDIES

2.1 Local Review of Related Literature and Studies………….

2.2 Foreign Review of Related Literature and Studies……….

CHAPTER 3: METHODS AND PROCEDURES

3.1 Method of Research……………………………………………

3.2 Subjects of the Study…………………………………………..

3.3 Description of Research Instrument………………………….

3.4 Data Gathering Procedure…………………………………….

3.5 Statistical Treatment Applied…………………………………

CHAPTER 4: PRESENTATION, ANALYSIS, AND INTERPRETATION OF

DATA

4.1 Presentation of Data………………………………………….

4.2 Analysis of Data………………………………………………

4.3 Interpretation of Data………………………………………...

CHAPTER 5: SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS

5.1 Summary of Findings……………………………………….

XI
 5.2 Conclusions…………………………………………………….

5.3 Recommendations…………………………………………….

CHAPTER 6: RESEARCHER’S TRANSCRIPTION OF RESPONDENT’S

RESPONSE (RRTR)

6.1 Bibliography…………………………………………………….

6.2 Appendix………………………………………………………..

 Letter of Permission to Conduct the Study……...

 Survey Questionnaire………………………………

 Curriculum Vitae……………………………………

 Researcher’s Narrative Experience………………

XII
 LIST OF FIGURES AND TABLES

FIGURES

Figure 1. The First Advertising Written in Papyrus 5000 Years Ago..... 2

TABLES

XIII
 Page 1 of 17

CHAPTER 1: THE PROBLEM AND ITS BACKGROUND

1.1 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.

1.1.1 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 an individual

purchase that product in an instant. But as a wise customer/consumer, they

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. When they constantly see advertisements online, it can influence

their purchase decision to some extent.

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1.1.2 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

Ogilvy & Mather is a well-known advertising agency. David Ogilvy, the

"Father of Advertising," was a British advertising tycoon in the 1950s. He

founded the prestigious Ogilvy & Mather Agency in New York City. The

invention of printing in the 15th and 16th centuries was the precursor to

modern advertising. Weekly newspapers in London began carrying

advertisements in the 17th century, and by the 18th century, such

advertising was flourishing.

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1.1.3 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.

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

 Page 4 of 17

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.

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.

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1.2 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.

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 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,

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 research paper, the researchers will focus on providing an

answer to the following questions:

 Page 6 of 17

1. What are the possible effects of advertisements to online

consumers?

2. How can advertising satisfy the potential customers’ curiosity about

a certain product?

3. In what situation does the advertisement is effective as a marketing

strategy?

4. What are the possible reasons that can explain why businesses are

in favor of using advertisements?

5. How does online consumer handle when an advertisement feed

them with the wrong impression and unrealistic expectation?

6. How can advertising acquire the consumer's trust in the promoted

product?

7. Where do online users often see advertisements?

a. Facebook

b. YouTube

c. Billboards

d. websites

e. mobile applications

f. Television
 Page 7 of 17

1.3 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 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 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.
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1.4 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.

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.

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1.5 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

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.

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1.6 Definition of Terms

Advertisement - Advertisement is one of the methods or techniques that a

businessperson can use to showcase their goods and expose it to a specific or

general audience.

Marketing Strategy - a business tactics for reaching potential customers or buyers

and make them avail the products or services they offer

Online businesses – Online business is a way of selling or buying goods or any

agreement that happened on or through internet.

Online Consumer - person who buy and consumes product from internet

Online Consumption - The act of purchasing something on the internet.

Product Selection – Requires critical thinking of potential customers when it

comes on selecting a product, making a good decision.

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CHAPTER 2: REVIEW OF RELATED LITERATURE AND STUDIES

Introduction

This chapter primarily presents some of related research studies that is currently

relevant to the researchers’ investigation. This paper will solely focus on providing

evidences about the impacts of advertisement to the consumers’ product selection,

which can be used as proof to prove the researchers’ inquisition.

2.1 Local Review of Related Literature and Studies

According to the research article entitled “Effect of Advertising Expenditure on Firm

Performance of Filipino Corporations” made by Atienza (2020), the relationship

between advertising and revenue to the Philippine companies have made

profitable outcomes, resulting that advertisement delivered the intended impact to

the potential customers

Aside from that, Dayag (2020) stated in his research paper that advertisement can

be described as a direct communication, it entered in the market competition freely

which comes from various characteristics such as in websites, billboards,

magazines, television, mobile apps and many more.

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Furthermore, online shopping is rapidly increasing among young Filipinos, the

reason why companies started to used social media to introduce the market’s

product. With online platforms, advertising will be more effective because this will

easily have reached out potential consumers since 88% of Filipinos used

Facebook. Thus, experts expected the purchasing of product from online markets

to grow from $10 billion by 2025, up from $7.9 billion in 2017 (Jazbec, 2020).

2.2 Foreign Review of Related Literature

Zhao Ke (2020) illustrates that the use of advertisements is based on the

influencing factors that affects the buying behavior of consumers. It can be either

an advertising that comes from the word of mouth including friends and family or

consumers buy the products online because of the sellers’ persuasion and

effective response.

In an article journal made by Sama (2019), it is important to grab the attention of

online consumers when using an advertisement. Advertisers employ a variety of

media outlets to communicate with their target audience, it is essential to know

that this fact-finding research highlight the psychological aspects of an individual

supported by digital media. Additionally, to satisfy the consumers’ interest, sellers

included the product data, description, quality, features, and feedbacks so that

potential customers will have an idea about these online products.

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CHAPTER 3: METHODS AND PROCEDURES

3.1 Method of Research

In this chapter, the research approach used in the study is thoroughly defined. The

researcher discusses how the necessary data and questions were gathered, as

well as the analysis of the reasons for the research design and its rationale. It offers

information on the study's area or location. This chapter focuses on the study's

research methodology. It gives a full account of the research strategy used in this

study.

3.1.1 Research Strategy

A quantitative research was chosen as a research strategy because it focuses on

collecting and analyzing data in a measurable way. It is all about numerical data

by the use of statistics, deriving from an exact summation of results.

Quantitative research is often best done from early on in projects since it helps

teams to optimally direct product development and avoid costly design mistakes

later. Indeed, in an iterative design process quantitative research helps you test

the assumptions the researchers aim to develop. Regardless of the method used,

it can gather objective and unbiased data – information which can complement

with approaches to build a fuller understanding of the target users. From there, it

can work towards firmer conclusions and drive its design process towards a more
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realistic picture of how target users will ultimately receive your product. (Yu Siang,

2003)

3.1.2 Research Approach

The researchers preferred the method of descriptive and observational study. It

means that the data cannot be manipulated and must only present an actual fact.

The researchers also used visual aids such as graphs and table based on the

information that have obtained. In that way, readers can easily read the illustrated

data that is too complicated to describe that aims to see the outcome without

assigning factors.

3.1.3 Research Design

This study is a quantitative description that seeks to answer questions about real-

life situations, and the source of data used which is the primary and secondary. To

elaborate, a primary data was used in this study wherein the researchers collected

the data from their own, or what is called the original source. The researchers’

used the most common strategy of gathering a primary data referred to as “survey

questionnaires. On the other hand, a secondary data was also used for the reason

that there is a virus outbreak in the Philippines and researchers cannot freely go

outside, using an alternative solution to gather data based on past researches

posted online in different websites.

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3.2 Subjects of the Study

In this research study, online consumers from Binangonan, Rizal will be selected

to participate in the research process. The researchers came up with 25 counts of

online consumers as respondents, and will utilize a random sampling technique to

distinguish the results.

3.3 Description of Research Instrument

After profiling the respondents for this research study, it is decided that a survey

questionnaire will be efficient for gathering the respondents' data with sense of

anonymity and confidentiality.

The research study's survey questionnaire consists of 10 research questions,

figuring out the respondents' thoughts and the general statistical data of all the

subjects. It is decided to find subjects in which we can get 10 range of sample size.

The survey questionnaire will suffice the data that will be needed to prove and

solidify this study.

Considering the situations that we are living in, online surveys are the best choice

of collecting valid and reliable data from respondents. The 10 questions on the

researchers’ survey form will be based on the conceptual framework to test the

proposed hypothesis from the authors’ research. In regards to the questions that

the group of researchers will formulate, the team will make sure that those 10 must

be free from bias and appropriate that contains clear instructions leading to smooth

process of gathering empirical data.

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Data can be collected relatively quickly because the researcher would not need to

be present when the questionnaires were completed. This is useful for large

populations when interviews would be impractical. However, a problem with

questionnaires is that respondents may lie due to social desirability, most people

wanted to present a positive image of themselves and so may lie or bend the truth

to look good.

3.4 Data Gathering Procedure

The researchers created a questionnaire checklist, which was subsequently

confirmed by Ms. Anna Ruth De Guzman, a subject instructor.

Given that this research is being conducted during a pandemic, the researchers

have taken advantage of modern technology. After creating the survey, the

researchers used Google Forms to send it to the respondents. The survey is given

to the chosen resident of Binangonan, Rizal. The researchers give the respondents

enough time to answer the given survey, considering participants' time.

The researcher informs the respondents about the significance of their

participation in the study. The researcher discusses some words with the

respondents so that they can answer the questionnaire knowing exactly what they

are responsible for as the study's subject.

The researcher believes that this technique is the most appropriate in selecting the

sample for this study since the researcher's purpose is to evaluate how advertising

influence online consumers when it comes to product selection. The researcher

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collected and tallied the data after the respondents completed the questionnaire

and performed statistical treatment to use in the study.

3.5 Statistical Treatment Applied

The data received from the study's respondents were interpreted using the

following statistical approach;

1. Simple Percentage – the demographic variables that may affect the online

consumer were assessed using the simple percentage using the following formula:

Formula: 𝑃 = 𝑓 𝑛 (100) Where:

P = percentage F = frequency of each category

N = total number of participants 100 = constant multiplier

2. Weighted Mean - this statistical tool is used to get the average responds of the

respondents to the questionnaire that was assigned.

Formula: 𝑊𝑀 = ∑ 𝐹𝑊 𝑁 Where:

WM = Weighted Mean ∑ = summation symbol

F = Frequency for each option W = assigned weight

N = Total numbers of frequencies