A

Final Project Report

On

CONSUMER PERCEPTION TOWARDS ONLINE

ADVERTISMENTS

Submitted to

I.K.G. PUNJAB TECHNICAL UNIVERSITY

JALANDHAR

In the partial fulfillment of the requirement of the

Award of Degree of
Masters of Business Administration (MBA)

Submitted by: Project Guide:

Shubham Kumar Ms. Ashima Kalia
1537704 Assistant Professor

Session (2015-2017)
APEEJAY INSTITUTE OF MANAGEMENT TECHNICAL CAMPUS
JALANDHAR
"Advertising is the no personal communication of information usually paid for and
-usually persuasive in nature about products, services or ideas by identified sponsors
through the various media."
Description or presentation of a product, idea, or organization, in order to induce
individuals to buy, support, or approve of it.
"Marketing is all those factors which go into the sale of a product or service such as
price, distribution, wholesale and retail support, plus advertising and promotion," says
Don E. Schultz in his book Essentials of Advertising Strategy.
"We know the primary goal of advertising is to get the right message to the right audience
at the right time," Mr. Schultz says.
A fundamental of Advertising introduces the student to the contemporary advertising
process. Research, planning, creativity, production, media placement and sales are
discussed, along with individual mediums and their forms, functions and roles in society
Advertisement is multidimensional. It is a form of mass communication, a powerful
marketing tool, a component of economic system a mean of financing the mass media, a
social institution, an art form, a instrument of business management, a field of
employment and a profession.
 REVIEW OF LITERATURE
Numbers of studies have been presented about the perception of people regarding on line
advertisement but due to paucity of time, a few snapshots of literature are given here
Neelika Arora(2004) has published research article entitled Trends in Online
Advertising in Advertising Express, Dec2004. Neelika Arora, Trends in Online
Advertising, Advertising Express, Dec2004. The global online advertising revenues are
expected to touch US $10bn by 2006. In India, the revenues at present are estimated to be
Rs. 80 cr. and are expected to increase six times more within the next five years. In India,
Internet as a medium is accepted by a wider industrial segment that includes automobiles,
telecom, education, banking, insurance, credit cards, FMCG, apparel/clothing, durables,
media, business services and tourism. Out of these, it is estimated that the banking,
FMCG and insurance sectors together account for 45% of the total advertising spend. In
comparison to this, automotive, travel and retail spend 37% of the total advertising
revenue and financial service companies spend 12% only. Some of the top spenders in
India are automobiles, followed by brands like Pepsodent, Kelloggs, Cadbury, HDFC
(Housing Development Finance Corporation Ltd.) loans and Sunsilk. In addition to these
the early adopters in the field of finance and IT are also increasing their spending.
Globally, the trend is that almost 60% of the revenue goes to five firms- Goggle, Yahoo,
Microsoft, AOL(America Online Launchers),and Overture. Approximately, 90% of the
Goggle revenues come from advertising. In India, portals like indiatimes.com,
exchange4media.com, rediffmail.com, etc are attracting major online spender. This article
explains demographic profile of Indian users. It also gives the comparison between global
trend and Indian trend, which is useful for my research work.
Wikipedia (2012) defined online advertising as a form of promotion that uses the
internet and worldwide web to deliver marketing messages to attract customers. Example
of online advertising according to Wikipedia, include contextual ads on search engine
results pages, banner ads, blogs, rich media ads, special networking 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.
Choi and Rifon (2002) were of the view that rapid growth in online advertising
revenues indicates the viability of worldwide web advertising as an alternative to that of
traditional media considering internet advertising growth, there is little doubt that the
internet is a powerful and viable alternative to traditional media advertising
Novak and Hoffman (1996) empirical evidence suggests that consumers respond to
much of the advertising on the Internet in the same ways as they respond to advertising in
traditional media, at least with respect to traditional measures of advertising
effectiveness. Internet and other interactive media like television have been more
powerful, responsive, and customizable than traditional media (Port, 1999).
Drze and Hussherr (1999) found response to the advertising on the internetto be
similar to response to advertising in other media, except that advertising on the internet
appeared to be easier to ignore. By Caroline Cartellieri et.al. The Internet has as big
impact on advertising as radio and television, it is just another emerging niche medium
with some peculiar creative capabilities and constraints Vol. - 4 No. - 2, June-2013 39
Lynch and Ariely (2000) found that consumers are less price sensitive when providers
on the internet offer different rather than identical products, a finding that directly
parallels findings in more traditional retail settings. Dreze (1998) considered internet
advertising as a viable alternative to traditional media, reach and frequency are used as
the standard measures for online ad effectiveness. 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). Strangelove (1994) documented several ad formats,
including electronic mailing lists, usenet newsgroups, signature files, free electronic
newsletters, software samples, electronic brochures, and storefronts on the web. Bush and
Harris (1998) continue to show that the number one barrier to online advertising
continues to be no proof of ROI or other measure of effectiveness. Palanisamy and Wong
(2003) found a positive relationship between online consumer expectations and web-
based banner ad effectiveness. Online advertising can be an effective branding vehicle
that could provide marketers with powerful communication tools the web can present
information in numerous ways including text, images, videos, and sound and therefore, is
a flexible medium. The marketplace is changing and it has been shifting towards online
shopping, and virtual market businesses. Due to the changes in the environmental trend,
the online business has to focus more on web-based advertisement
Qimei Chen and William D. Wells (1999) develop and present a reliable and valid scale
that measures attitude toward a website. They then develop and present additional scales
that provide more detailed information Laurent Flores (2007), highlighted his findings in
the light of online advertising consumer model to understand the value of different
formats (such as banners, banners with daughter window, shared real estates, and
interstitials) of sponsorship and broadband advertising. According to Preston (1985), the
perfect advertising effectiveness measure should be related to the actual behavior. Most
concrete measure of interactivity is looking at users actual behavior of interactions, e.g.,
clicking, searching, book marking, etc.
Briggs and Stipp (2000), share learning accumulated on the effectiveness of different
types of ad formats. internet advertising is a commercial communication intended to
generate a response over time. A better understanding of the function of Internet
advertising will not only help the development and use of various Internet advertising
formats but also assist the effective integration of both traditional and internet advertising
in marketing campaigns.
Rodgers and Thorson (2000) draw a similar distinction in their Internet Advertising
Model. A primary element of their model designed is to explain the communication
process consumers follow in relation to messages on the internet, is that some of these
processes are advertiser- controlled, while others are consumer- controlled.
Pavlov and Stewart (2000), the measurement of advertising effectiveness can be
thought of in terms of two distinct aspects one Process Control and another was
Results. These two sets can be thought of as different but also complementary in their
focus.Control process measures concern primarily media choice, information search, and
the attention. Results measures concern the outcomes of consumers having been exposed
to messages. Advertising effectiveness is a large part of any marketing campaign; and the
marketers need to know if their advertisements have affected their target audience. If the
campaign can actually reached the targeted audience then the benefits would be immense.
Anandam P. Kavoori and Kalyani Chadha (2001) studied the future of the internet in
the developing world by exploring the discourse of advertising. On the basis of a visual
analysis from records of New Delhi and newspapers and magazines, the study concluded
that a rethinking is required for online 40 Management Convergence advertising in
developing word. It argues that the advertisement themes used in online advertisement
used a vision of the future of internet which defies the issues of linguistic hegemony,
technological innovations, a consumerist culture, support of sexism and class. The study
suggests that the future of internet technology in the developing world is intimately
connected with the issues of global capitalism and cultural hegemony.
So at last it can be concluded that Buttons initially were from software companies and
allowed Web users to freely download software by just clicking on the button. A popular
button in this category is that of Netscape, the Netscape Now button. Buttons are
simple and have been a great success in leading users to software developers products.
Buttons can be used to build brand awareness because of their constant presence on the
Web pages.
3.1. Need of the Study
The need of the study arises because of the past limitations of the studies carried out at
different times in the past. Some of the studies have mention about the role of on line
advertisement in marketing sector. The need of the study arises because of to know about
the perception of people regarding on line advertisement.

3.2 Scope of the Study

The scope of the study was current time period. The study survey was limited to
Jalandhar city only. A limited study was select to fulfill the various objectives of the
study.

3.3. Objectives of the Study

Every study whenever undertaken has certain objective which has explored so as to have
an idea that how is its future prospective. To achieve following objectives research will
conduct:
1. To find the awareness among customer regarding online advertising.
2. To study the perception of the consumers regarding online advertisements.
3. To find the most preferred site for online advertising.
4. To Study the effective of online advertising verses traditional advertising.
 ANNEXURE

Dear Respondent
I am a student of MBA -IV of Apeejay Institute of Management Jalandhar. I am
conducting a project entitled, Consumer Perception towards Online advertisements.
I need your co- operation, which will help me to draw conclusive inferences.

Name __________________

Age 18-25 25-30 30-above

Gender Male female

Qualification Metric Secondary Graduate Postgraduate

Income (Rs.) 0-10,000 10,000-20,000 above 20,000

Contact No:..

1. Are you aware of online advertising? (Please tick)

Yes No

2. Do you read advertisement on the internet?

Yes No

3. How often do you access to online ads?

Always Sometimes Seldom Never

4. What effect do you think internet advertising has on the prices of the products?
(Please tick)

Increase price No effect Decrease price

5. Do you think online advertising is different from other modes of advertising?

Yes No

6. How often do you use online advertising to help make your purchase decision?
(Please tick)
Often Sometimes
Seldom Never

7.. Rank the following media of advertising? (Please rank from 1-6)

Hoardings
Magazines
Online ads
Pamphlets
Direct mailing

8. What are the forms of online advertising that you experience?

(You can tick more than one)

Pop-ups
Running ads
Banner ads
Button ads
Keyword search ads

9. How important do you think is online advertisement for increasing company sales?

Very important Important Neutral Not very important