International Journal of Latest Engineering and Management Research (IJLEMR)

ISSN: 2455-4847
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A Descriptive Study of the Effectiveness of Internet Advertising

on Consumer Buying Behavior in Nagpur City
Prof. Anupkumar Dhore
Faculty of Marketing Management

Dr. Snehal Godbole

Faculty of Marketing Management, International Business and Banking & Insurance

Abstract: The present research report emphases on studying the impact of internet advertising on consumer
buying behaviour, which raises the consumers' intentions towards the product and buying behaviours. The
purchasing behaviour is strongly influenced by the image of the product which is built by the advertisers.
Advertisers are expected to shift their focus and spend millions in internet advertising in the coming years than
TV, print ads and another traditional advertising media.Online shopping is a growing trend in India and the
numbers of both sellers and buyers are increasing daily by whopping percentages. India’s total online sales
figure is estimated to reach the US $100 billion by 2020. With the rapid growth in technology, the internet is
becoming an important one stop point for consumers in finding most of their needs. Be it communication,
entertainment, information search or shopping, internet serves as a panacea for all their requirements. According
to the global networking giant Cisco, Digital transformation will take India's internet users from 373 million (28
percent of population) in 2016 to 829 million (59 percent of the Indian population) in 2021. This clearly
demonstrates that India is growing fast and people are becoming habitual of using the Internet as the evolution
of human society, the improvement in Communication processes and Digital Convergence open up innovative
opportunities and challenges for Marketing. Subsequently, the Internet has moved ahead to play a significant
role in the Consumer Decision Making Process. Many consumers are online every day for their personal &
official work, but do they notice the ads, banners displayed on that webpage and most important thing is to
check what is their recall value. The current study investigated the impact of internet advertising on consumer
buying behaviour by conducting a survey.
Keywords: Internet, advertisement, internet advertising, consumer, buying behaviour

Introduction:
The greatest product or service in the world won't make money unless consumers know it exists, this is
why advertisement is considered so important. Advertising is a form of marketing communication used to
promote or sell various products or services. In Latin “advertere” means “to turn towards”. There are various
ways putting up an advertisement as per the audience to be addressed.
Internet advertising is a form of promotion that uses the Internet and World Wide Web for the
expressed purpose of delivering marketing messages to attract customers. Examples of online advertising
include contextual ads on search engine results pages, banner ads, Rich Media Ads, Social network advertising,
online classified advertising, advertising networks and e-mail marketing. Response to brand communication is
instantaneous, and conversion to business is very high. This is because in contrast to conventional forms of
interruptive advertising, the viewer has actually chosen to see the commercial.
The time when only top-notch businesses set sail on internet marketing has gone now. It is time to
explore the advantages of internet marketing! Now internet marketing is much more cost-effective, all-inclusive,
easy to handle, and just a tick of mouse can, without much of a stretch do a great part of the specialized work
that, once upon a time required outsourcing. This provides ascend to huge opportunities for the businesses to
enhance their sales through internet marketing in an efficacious fashion.
Consumer buying behavior is the sum total of a consumer's attitudes, preferences, intentions, and
decisions regarding the consumer's behavior in the marketplace when purchasing a product or service.
Researchers, businesses and marketers study consumer behavior to understand what influences a consumer’s
shopping preferences and selection of products and services. Multiple factors affect consumer behavior, among
them economic status, beliefs and values, polish, personality, age and education (Kotler, 2004). Findings
on consumer behavior are used to develop methods that will boost company performance and gross revenue

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International Journal of Latest Engineering and Management Research (IJLEMR)
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Literature Review:
Online advertising refers to the type of marketing strategy that involves the use of internet for
promotion of products by delivering the marketing messages to the larger consumers. It includes delivering ads
to internet users via websites, e-mail, ad supported software’s, text messaging and internet enabled cell phones.
The internet population is younger, more affluent, and better educated and they easily find their way onto the
internet, the cyberspace population is becoming more mainstream and diverse. In online marketing, it is the
consumer, not the marketer, who gives permission and controls the interaction. Internet consumers have around
the clock access to varied information sources, making them better informed and more discerning shoppers.

Awareness Trail Model of consumer response to advertisement (Ehrenberg,1974)

This review of theories postulate an Awareness-Trial-Reinforcement model of consumer response to
advertising and the main purpose of advertising for established brands is its defensive role in maintaining repeat
buyers. In answer to how ad works, one model that applies to certain advertising categories is "Advertising
offers a stimulus to a potential user of a product, which it is hoped will produce the response of an increased
predisposition to buy the advertised brand." This was a descriptive type of study. This study concludes that
advertisements displaying discount offers attract the netizen immediately followed by other features of the ads
like colors used in the ads and promotions provided on the online ads of the products.

Consumers have direct control over web based advertisements on what ads, when, where, and how long
they would like to see them (Gallagher et. al., 2001).
According to this literature on internet advertisements, it was concluded that voluntary and exposure ad
formats like banner and text ads are more likely to be cognitively avoided since it is an automatic, sub conscious
process that occurs in parallel with browsing activity and does not require any behavioural action by consumer.
This is a descriptive study. This literature concludes that in comparison to movable and immovable ads, netizen
prefer movable advertisements that include visuals, music, graphics and animations.

Theories of Advertising(Weilbacher,1984)
This review of theories in advertising suggests that there is no consensus about how consumers interact
with advertising or how these specific interactions do not lead to particular results in the market place This is a
descriptive study. The study concludes that internet advertising influenced purchase decision of the customers to
a moderate extent as only nearly half of the respondents were influenced purchase decision.

Problem of the study:

Internet is one of the important mediums that own all kinds of features, which implies a great potential
and powerful advertising medium in the future. In addition, Internet has a better impact than traditional media in
the features like format variety, affinity and storage. Furthermore, Internet is the only medium so far which
owns the feature of interactivity. Internet creates lots of new communication opportunities and possibilities that
were unable to be achieved in the past because of the limitation of media technologies. In spite of these whether
the online advertisement is effective in influencing the potential buyers in modern era is the key question that
the researcher is going to explore.

Objectives of the study:

1. To determine the effectiveness of internet advertising on reach and creation of awareness.
2. To determine the influence of internet advertising on consumer buying behaviour.
3. To determine the relationship between internet advertising and purchase decision.

Hypothesis:
H0 – A: A significant number of women get influenced by internet advertising more than men
H0 – B: Millennial/ Youngsters (30 years or below) get more influenced by Internet advertising than the Grown
up /Adults (30 years and above)

Research Methodology:
The study is based on secondary as well as primary data. The primary data was collected form the
respondents at Nagpur through a structured questionnaire. Any questionnaire which was incomplete was not
taken into consideration for the analysis. This study used descriptive research. Descriptive research involves
gathering data that describe events and then organizes, tabulates, depicts, and describes the data collection. It

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International Journal of Latest Engineering and Management Research (IJLEMR)
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often uses visual aids such as graphs and charts to aid the reader in understanding the data distribution and
therefore offered a better clarification on online advertising, and ultimately gives a clear picture on the
effectiveness and reliability of internet advertising and its relationship to purchase decision. The technique used
for primary data collection was simple random sampling method. Secondary data was collected form
Company’s profile, journals and various literature studies are important sources of secondary data.

Sampling Detail
1. Target population: The research study has focused on urban consumers of above 18 years of age. So that
they can recall the reasons, which affect their perception of Internet advertisements.
2. Sampling unit: In this study the sampling unit is individual consumer.
3. Sample size: 100 consumers.
4. Sampling method: The sample is selected by using cluster sampling method.

The study area was spread across Nagpur District and 100 samples were taken for the study of the topic.
This research studied the psychology behind online consumer’s behaviour and also their perception of Internet
advertisements

Limitations:
1. The study has confined to urban areas as it assumed that the rural areas do not have good Internet
connection and so the entire findings are based on urban consumers only
2. Geographical coverage, as only limited areas have been taken from Nagpur, India. It is not sure whether the
findings will apply to the whole country.
3. Respondents below 18 years of age were not included in the present study, as it was assumed that these
respondents can answer questions relating to Internet advertising. This is a limitation as respondents below
18 years also use the Internet and if they had been included in the sample; their opinion on issues relating to
Internet advertising may have given important insights.

Data Analysis
Table 4.1.1Gender distribution of the respondents
Frequency Percentage
Gender
Male 55 55 0%

Female
Female 45 45 45% Male
55%

Total 100 100.0 0%

Figure 4.1.1

According to table 4.1.1, the number of male respondents is more than the female respondents. The
number of male respondents is 55(55%), where female respondents are 45(45%). The total sample of the
respondents in this research is 100 people.

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Table 4.1.2 Distribution of the respondents by age bracket
Age Bracket Frequency Percentage
3% Age Group
19-25 years 60 60
19-25 years 26-40 years
26-40 years 35 35 41-55 years Above 55
2%
41-55 years 3 3
35%
60%
Above 55 2 2
Total 100 100

Figure 4.1.2

Based on Table 4.1.2 and Figure 4.1.2 majority of the respondents are the age group between 19
and 25 years old which represent 60(60%) individuals of the whole sample size. The following groups fall
under the age group of below 19-25 (60.0%) and 26-40 (35%) years old with 35 people. There are 3 (3.0%)
respondents are under age group of 41-55 years old and above. Lastly, only 2 (2.0%) respondents are falls
under age group above 55 years old.

Table 4.1.3 Distribution of the respondents by hours spent on internet daily

Particulars Frequency Percentage (%)
Hours spent on internet daily
< 1hr 8 8
1hr to 2hrs 32 32 < 1hr 1hr to 2hrs 3hrs to 4hrs 4hrs to 5hrs >5hrs
15% 0% 0% 8%
3hrs to 4hrs 34 34
11% 32%
4hrs to 5hrs 11 11 34%
>5hrs 15 15

Total 100 100

Figure 4.1.3

The above graph shows how many hours spend by the consumer daily on internet. We can see that 34%
people spend around 4 hours on internet where as 32% people spent around 1hr to 2hr and 11% people spent 4hr
to 5hr respectively.

Table 4.2 Distribution of the respondents paying attention to Internet ads

Particulars Frequency Percentage (%)
Yes 65 64 Attention to Ads
No 35 36
Total 100 100 Yes No
0% 0%

36%
64%

Figure 4.2

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The figure 4.2 shows that people pay attention on online advertisement. We can see that almost 65% people
pay attention on various Ads whereas only 35% don’t pay attention.

4.3 Effectiveness of internet advertising on reach and create awareness

The first objective of the study was to determine the effectiveness of internet advertising on reach and
creation of awareness. The study sought to establish whether the respondents were aware of various forms of
advertisements adopted by various companies. Majority of the respondents (34%) attested to being aware of
various forms of advertisements. This illustrates that the effectiveness of internet advertising on reach and
creation of awareness was determined by the level of knowledge about the existing platforms of advertisements.
The respondents were asked to indicate their attitude towards advertisements. Table 4.3 illustrates the study
findings.
Table 4.3 Attitude towards Advertisements

Particulars Frequency Percentage

Attitude
Informative 21 21
Attitude
Creates Awareness 35 35 35
21 25
Irritating 25 25 15
0 4
Entertaining 15 15

Waste of time 4 4
Total 100 100

Figure: 4.3

As shown in Table 4.3, most of the respondents (21%) indicated that advertising was informative,
with a closer percentage of 34 % indicating creation of awareness. 25% indicated that advertising was
irritating,. 15% indicated that advertising was entertaining. 4% indicated that advertising was a waste of time
These findings mean that most of the respondents had a positive attitude towards advertising as illustrated by
their various perceptions about the use of advertising. This clearly shows a positive attitude toward advertising
and hence is a good indication for marketers.

4.4 Influence of internet advertising on consumer buying behavior

The second objective of the study was to determine the influence of internet advertising on consumer
buying behaviour. Respondents were asked to indicate the of influence advertisement in buying behaviour. The
results were shown in pie chart 4.4

Table: 4.4 Influence of internet ads. on consumer buying behaviour

Influence Frequency Percentage (%)

Large Influence 16 16
Influence
Large Influence Medium INFLUENCE Not Sure
Medium Influence 53 53
0% 16%
Not Sure 31 31 31%

53%
Total 100 100

Figure 4.4

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As shown in Table 4.4, most of the respondents 53% indicated that advertising was medium
influencing, with a closer percentage of 31 % indicated that advertising was largely influential. 16% of
respondents were not sure about the influence of advertising. These findings mean that most of the respondents
have considered internet advertisings are largely influencing in buying behaviours.

4.5 Relationship between internet and its usage.

The respondents were further asked to indicate their purpose of using internet. The study findings are
illustrated in table 4.5 and figure 4.5
Table 4.5 Internet Usage
Chatting and
Particulars Frequency Percentage
(%)
social
networking,
Internet Usage
50 Information,
Chatting and 45 45 45
45 35
social
networking 40
Email 11 11 35
30
Information 35 35 25
20
E-commerce 3 3 Email, 11
15 Downloading
E-
Downloading 6 6 10 ,6
5 commerce, 3
Total 100 100 0

Figure 4.5

As shown in Figure 4.5, 11% of the respondents used internet for E-mail, 35% for information, and
45% for chatting and social networking, indicating that communications has been the fundamental value of the
internet to consumers. There was a higher chance of interaction with various online ads through chatting and
social networking which influence consumer buying behaviours as reflected by the diverse usage of internet.

4.6 Reliability of internet advertising through recall

One of the objective of the study was to establish the reliability of internet advertising through recall.
First, the respondents were asked whether they would check an online advertisement and the findings presented
in the Table 4.6.

Table 4.6 checking an online advertisement

Checking an internet ads
Particulars Frequency Percentage 0%
0%
Yes 64 64 No
36%

Yes
No 36 36
64%

Total 100 100

Figure 4.6

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In case of online advertising, majority 64% of consumers ignored the advert completely while 36%
indicated that they would check an online advert. Further the study found out that, out of the 36% respondents,
18% said that the intention was not to see the ads, but they didn’t have any option but to see them as they were
Interstitial. Adverts, Pop – up ads or Floating ads. These ads either block the view of the content, or appear right
in the middle of the page, or keeps on floating (moving) around which is considered to be very irritating for the
consumers. Checking the ads determined the level of interaction with the online ads. Therefore, even though the
reach of internet is much higher than that of other modes, its ability to attract consumers for awareness creation
is very low.

4.7 Relationship between internet advertising and purchase decision

The third objective of the study was to determine the relationship between internet advertising and
purchase decision. Respondents were asked to indicate the mode advertising that mostly influenced their
decision to purchase a product. The results were tabulated in Table 4.7

Table 4.7 Mode of advertising influencing intention to buy product

Particulars Frequency Percentage
(%)
Print ads 13 13

TV 33 33
Commercials
Online Ads 24 24

Social Media 30 30

Total 100 100

Mode of advertising influencing intention

to buy product
TV
40 Commercials, 33 Social Media, 30
30 Online Ads, 24
20 Print ads, 13
10
0
Print ads TV Online Ads Social Media
Commercials

Figure 4.7

Based on Table 4.7 above, 33% of the respondents were influenced to buy a product based on
information provided by TV commercials. Online advertisements were second in influencing their decision at
24 %. Therefore, TV commercials were the major influencers behind decision making. This depicts that
traditional form of advertising has an edge over internet advertising in terms of consumer preference to mode of
advertising.
Secondly, the respondents were also asked to indicate whether the internet ads they came across
influenced their purchase decision. 76% of the respondents indicated that the internet ads they came across
never influenced their purchase decision while 24% posited that the internet ads they came across influenced

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their purchase decision. This depicts that the internet advertising influenced purchase decision of the customers
to a moderate extent as only nearly half of the respondents were influenced purchase decision.

4.8 Effectiveness of internet advertising in actual purchase decision

Table 4.8 Actual Purchase Decision made through internet advertisement
Particulars Frequency Percentage (%)
Actual Purchase Decision made
Yes 67 67 0% through Internet Advertisement 0%

No 33 33 No
33%

Yes
67%

Figure 4.8
Based on figure 4.8 above, 67% of the respondents were purchased a product based on information
provided by internet advertisements. 33% respondents were not influenced by internet advertising and didn’t
make any actual purchases after advertising. This indicates that internet advertising were the major influencers
behind purchase decision making

4.9 Repeated advertising affect consumer behaviour. This repetition serves as a reminder to a consumer.
In order to further determine the relationship between internet advertising and purchase decision, the
respondents were requested to indicate level of extent to which repeated internet ads serves as a reminder to
them which affect the buying behaviour.
Table 4.9 Repeated ads serves as a reminder to a consumer.
Particulars Frequency Percentage (%)
Repeated ads serves as a
To no extent 13 13
reminder to a consumer
To little extent 51 51
To no extent
To moderate 26 26
extent To little extent
To a great 10 10
extent
To moderate
Total 100 100 extent
To a great extent

Figure 4.9

Based on figure 4.9, 51% respondents were agreed that repeated advertising affect consumer behaviour
to little extent. , 26% respondents were agreed that repeated advertising affect consumer behaviour to moderate
extent. While 13% respondents were agreed that repeated advertising affect consumer behaviour to no extent.
This indicates that repeating advertising serves as a reminder to a consumer and affects buying behaviour.

Hypotheses Testing
H0 – A: A significant number of women get influenced by internet advertising more than men

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Observed Frequency table:
Women Men Total
Influenced 24 23 47
Not Influenced 21 32 53
45 55 100

Expected frequency table

Women Men Total
Influenced 21.15 25.85 47
Not Influenced 23.85 29.15 53
45 55 100

Chi Square Statistics

Residual Component =
Observed Expected (Obs -
Response (Obs - (Obs - Exp)^2 /
Frequency Frequency Exp)^2
Exp) Exp

Influence Women 24 21.15 -2.85 8.1225 0.38

Influence Men 23 25.85 2.85 8.1225 0.31
Not Influence Women 21 23.85 2.85 8.1225 0.34
Not Influence Men 32 29.15 -2.85 8.1225 0.28
Chi-square Value 1.31
p-value at df = 1 [(2-1)x(2-1)] 0.25

To test the abovementioned hypothesis chi-square test of independence has been applied to check
whether impact of internet advertising is gender dominated. Hence, assumption was that variable “Women” is
independent of variable “Men”. On calculating the chi-square value, the result obtain are:
Chi-square = 1.31
P value at 5% level of significance at d.f. 1 = 0.25

There are conclusive evidences for not rejecting a null hypothesis. Thus we will accept the null hypothesis
that A significant number of women get influenced by internet advertising more than men

H0 – B: Millennial/ Youngsters (30 years or below) get more influenced by Internet advertising than the
Grown up /Adults (30 years and above)

Observed Frequency table:

Youngsters Grown up Total
Influenced 37 23 60
Not Influenced 21 19 40
58 42 100

Expected frequency table

Women Men Total
Influenced 34.8 25.2 60
Not Influenced 23.2 16.8 40
45 55 100

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Chi Square Statistics

Component =
Observed Expected Residual
Response (Obs - Exp)^2 (Obs - Exp)^2 /
Frequency Frequency (Obs - Exp)
Exp

Influence Women 37 34.8 -2.2 4.84 0.14

Influence Men 23 25.2 2.2 4.84 0.19
Not Influence Women 21 23.2 2.2 4.84 0.21
Not Influence Men 19 16.8 -2.2 4.84 0.29
Chi-square Value 0.83
p-value at df = 1 [(2-1)x(2-1)] 0.36

To test the abovementioned hypothesis chi-square test of independence has been applied to check
whether impact of internet advertising is generation specific or dominated. Hence, assumption was that variable
“Youngsters” is independent of variable “Grown Up”. On calculating the chi-square value, the result obtain are:
Chi-square = 0.83
P value at 5% level of significance at d.f. 1 = 0.35
There are conclusive evidences for not rejecting a null hypothesis. Thus we will accept the null hypothesis
that Millennials/ Youngsters (30 years or below) get more influenced by Internet advertising than the
Grown up /Adults (30 years and above)

Recommendation and Conclusion:

As we come to the end of the study, this report provide an in depth and very comprehensive picture
oneffectiveness of internet advertising on consumer buying behavior in Nagpur city.Overall in a study on
effectiveness of internet advertising on consumer buying behaviour, the outcomes which came from the survey
which is conducted over the 100 number of people is as follows. In a research, the researchers found that the
Internet users (all age groups people) have the similar perception towards the internet advertisements.
The study established that the effectiveness of internet advertising on reach and creation of awareness
was determined by the level of knowledge about the existing platforms of advertisements. Most of the
respondents had a positive attitude towards advertising as illustrated by their various perceptions about the use
of advertising. This clearly shows a positive attitude toward advertising and hence is a good indication for
marketers. The findings augment that marketing is perceived by the internet users as a major source of
information on available product in the market as reflected by their positive attitude in the world over. Internet
advertising is an effective channel for marketing as the ad are attractive and appealing which changes from time
to time.
The study established that even though the reach of internet is much higher than that of other modes, its
ability to attract consumers for awareness creation is very low. The study concludes that the reliability of
internet advertising through recall was low as only a small percentage of the respondents could recall the online
ads they had seen.
The study established that internet advertising influenced purchase decision of the customers to a
moderate extent as only nearly half of the respondents were influenced purchase decision. The study established
that internet advertising is a key determinant of purchase decision of the customers. The study also established
that internet advertising has significant relationship with purchase decision of the consumers. The findings
augment that internet advertising is a key determinant of purchase decision by the customers and that internet
advertising has an association with purchase decision.

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