The Evaluation of the Effectiveness of Online Contextual Advertising on

E-Shoppers in India

1
Declaration

2
 Abstract

The Internet technology has generated an innovative mode for companies to interact and
communicate with their potential consumers. To select the best online advertisement that
is good for them are able to be a worrying period of0test0and0trial. Advertising through
online contextual is very useful tool and also very inexpensive. Some present data show
that many e-shoppers on the online are developing at such a quick rate0that0it
is0forecasted that in0five0years time. At the present time when the work is developing
speedily and in this condition where the shopper does0not have to0leave0their0home to
purchase something. Whereas every online advertising system is exclusive, online
contextual advertising largely includes the similar inventive standards of contextual
advertising like offline advertising technique. The employ of online societies are able to
more intensify e-shoppers’ recognition and connection with the product. The acceptance
of this assumption is able to outcome in the view of easiness of use and an optimistic
approach in the direction of the online website, in addition to a real buy. Online
contextual advertising influences the mainstream if not every online e-shopper who
would face a few online advertisements at one time other than the other0when they0are
searching over the internet. The communication between e-shopper and business
demonstrates e-shoppers’ responses to the businesses. Online contextual advertising gives
huge chances for organizations that, for different causes, are able to shape the current
digital connections that are the support of a winning goal Web site. Organizations are
growingly studying how to control these results for their personal benefit, getting instant
response from online visitors and staying strong and steady in the current competitive
environment. The effective potential of the contextual advertising provides e-shoppers
with extra authority. Consequently, e-shoppers are liable to be extra challenging and to be
less understanding of e-buyers interaction from online advertisers. As well as the
influence of faith and related threats related with e-purchasing, Satisfaction of the e-
purchasing feeling is furthermore a significant factor of holding e-shoppers.

3
Acknowledgment

4
TABLE OF CONTENT

Chapter 1: Introduction

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1.1 Introduction:
According to Robert (2005), several0advertising0networks shows text-only otherwise
graphical advertisements that match to0the0keywords0of0an online search otherwise to
the0content0of the0page on which the advertisement is displayed. So it is also thinking
that these online advertisements have a great potential to draw attention of e-shoppers, as
they0tend to0share a same context according to the e-shopper's search question. Such as,
a search word for "flowers" could 0return an ad for0a0florist's0website. A different new
method is embedding main word0hyperlinks in0an article0which are supported through a
marketer. Butch and Richard (2007) described that when an e-shopper clicks on the link,
he is on their website. Online advertising marketplace has increased quickly over
the0past0decade. Online contextual advertising influences the mainstream if not every
online e-shopper who would face a few online advertisements at one time other than the
other0when they0are searching over the internet. Because increasingly persons give their
more time on web searching, advertisers think that online advertising would0be
a0goldmine. Therefore online contextual advertising are able to carry advantages to
internet users (Goldfarb and Tucker, 2009).

Alternatively, online contextual advertising furthermore accepted criticizes as

being aggravating otherwise invasive, and is understood to have harmful impacts for
example influencing person’s job recital. An online ad is an ad that is displayed to the
aimed e-shoppers by the World0Wid0Web. Online advertisements are normally known
as display advertisements otherwise banner advertisements over the web. A few
marketers have discovered online contextual advertisements to be effective in many
conditions, for potential customers, otherwise when employed in sure modes. An
ordinary implementation of contextual advertisements is to expand the potential of a
search operation that has "hit0a0wall" of0traffic on related keywords. In contextual they
are not searching, other than this is only targeted. It is a technique to increase the
customer base through a contextual ad over the internet, by the similar edge. If they
realize that these ads perform in a different way and check and track the event discretely,
it is able to be effective (Angrist and Steffen, 2009). As well as the chief elements, their

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communications are able to have simple traits that also support to the results of the
learning, other than being the findings of the learning. The communication between e-
shopper and online contextual ad is about e-shoppers’ responses to these advertisements.

The communication between e-shopper and product understand about e-shoppers’

responses to the products otherwise services which is advertised in contextual form.
Drèze and Hussherr (2004) suggested that by using online contextual advertising, a
company can easily give the information about their product to the online shoppers. The
communication between e-shopper and business demonstrates e-shoppers’ responses to
the businesses. Lastly, the communication between product and business can demonstrate
any connections these two parts can have. Such as, the displayed product/services can be
chiefly associated to the websites’ contents0and such a condition also influence e-
shoppers’ responses to the contextual advertisements. Though, if e-shoppers believe that
the online contextual advertisements are not consistent, they do not reply to the ads
although the ads may have better inspiration, expressive appeal, and interactivity (Hollis,
2005).

1.2 Research Title:

The research study is focusing towards the internet consumer behaviour or response
towards online contextual advertising and this research analyze the effectiveness of
online contextual advertising in marketing the product. Therefore the research topic for
the dissertation would be “The Evaluation of the Effectiveness of Online Contextual
Advertising on E-Shoppers in India”.

1.3 Rationale of the Research:

Advertising through online is extremely significant for company to promote their product
in this0information0age. In this mode contextual advertising is very gainful otherwise it
can be free. Increase the awareness about their product by using this strong advertising
tool. E-shoppers seek more than0a0name0and0number0when0they require products
otherwise services. Employ this system of online contextual advertising to display e-
shoppers their very important trade information. So this research will present the various

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factor related to online contextual advertising. And also this research measures the
viewer’s response towards online contextual advertising. In this research we evaluate the
effectiveness of online contextual advertising to increase the product sale and awareness
among online customers. Their competitors now completely realize the benefits of online
contextual advertising, and businesses are more eager to implement this technique into
their marketing operations and get positive feedback from their customers, also they
preparing to execute more campaigns, and generating their income level to increase their
sales through online selling to their customers (Ghose and Sha, 2009). If they do not
accept for similar of the online shopper awareness, their brick and mortar lesser can
rapidly turn into "brand perfection" over the web. Online contextual advertising will
make money for business and assist them to build strong position against their
competitors. This type of online advertising generates more revenues for the business.
Online contextual advertising allows e-shoppers to find a product according to their
needs, evaluate it and purchase it (Ducoffe, 2008).

1.4 Aims and Objectives of the Research:

The research has several aims and objectives. The central research question would be the
success or failure of online contextual advertising. This research question would be
justified by fulfilling the following aims and objectives:-

1. Response of E-shoppers towards contextual advertising.

2. Identification of current uses and trends of contextual advertising.
3. To try to get a feedback from a few businesses that have used contextual
advertising, in order to assess its success or failure
4. Economic viability of using contextual advertising – whether it is cheaper to use
as compared to other sources of advertising such as T.V. adverts, billboards,
magazine ads etc.

Advertising is one of the most important activities that help businesses to promote
themselves. It also creates brand awareness amongst buyers. In the recent years the
World Wide Web has significantly evolved and has given rise to a borderless business

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world. Due to this the above mentioned research topic has been chosen by the author in
order to test the success or failure of one of the newest advertising concepts in the current
world.

1.5 Significance of the Research:

In the current business environment internet turns into more ubiquitous, organizations
will develop several new modes to communicate with consumers. This bang of entrance
will provide huge selling options with great profitability, other than it will furthermore
pose great confronts. Structuring a forceful web site can be tough task for them, and
employing personalization0software to0customize what0individual customers see can be
harder yet. Other than these approaches soft in contrast to handling an enveloping
electronic existence that signifies and reacts not just to whom the consumer is other than
where0she0is and0what she is available. Online contextual ads are applying in several
different modes the newest online advertising technical progress and enable a business to
put ads in major websites0and0portals that are bringing appropriate content for their
product otherwise service.

Online contextual advertising is able to be a useful mode of reaching a target

customer described through the factors they as a marketer desire to set and is able to be a
dynamic addition to a Pay per Click advertising program otherwise a run
of0network0banner0campaign. Like0Pay0per0Click a contextual advertisement which is
completely based on text is normally priced on a performance associated expense for
each click basis. Online contextual advertising gives huge chances for organizations that,
for different causes, are able to shape the current digital connections that are the support
of a winning goal Web site — such as, manufacturers of consumer packaged products,
single-product organizations, and occasional service givers. The online system will
greatly make bigger advertisers' chances to reach e-shoppers. The advertising objective
will be the similar as still: serve the suitable product to its needed consumer at the correct
time (Havlena and Graham, 2004). The organizations currently trying to understand the
needs and requirement of their customer quite well and after understanding these needs
they have been trying to fulfill those needs. Other than in several conditions, in its place

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getting consumer information otherwise individual customer connections, effective
contextual advertisers will borrow them (Dahlen, 2007)

1.6 Structure of the Report:

In order to get the greater visibility of the research, this research report has been
classified into five chapters. The first chapter includes the brief introduction about the
research study including the rational of the research, significance of the study and aims
and objectives. The second chapter provided the review of literature and views from
various authors. The third chapter includes the brief view of research methodology that
has been undertaken to execute this research study. The fourth chapter includes the
analysis and findings of the research from primary data. The fifth and last chapter
includes the conclusion drawn from the research and provided the recommendation based
on the findings of the study.

1.7 Summary:
When organizations move toward online system to advertise and sell their produces, they
discover not just do they increase their sales level, other than they are able to furthermore
advertise0in main places0for0small otherwise free of cost to them. This assists them in
two modes: it takes the product0into0the0hands of0the customer and the organization
incomes extra because of fewer expenses. At present, online search styles and manner has
turn into a window into customer feelings and attitude (Grabner-Kraeuter, 2002).
Organizations are growingly studying how to control these results for their personal
benefit, getting instant response from online visitors and staying strong and steady in the
current competitive environment. Consumers' activities are growing increasing on the
internet so this is why companies have to increase a limited chance to reach e-shoppers
by the purchase channel (Srinivasan et al, 2002).

Organizations should make sure customers are completely conscious of what they
are purchasing. They should offer an opportunity for businesses to install their produce. If
they act, customers have no0reason0to0harbor single bitterness in the direction of these
advertisements. Unluckily, a few organizations out there have tried to reduce the

10
dishonesty to rip registered online users. A transformed online advertising system could
serve the strategies to tackling the recession the first0go-around. Marketers understand
this is0the greatest mode to get their consumers as they are aiming just the0ones0who are
interested0in their service otherwise product. They display just the advertisements that
attract their consumers (Mehta, 2005)

Chapter 2: Literature Review

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2.1 Introduction:
According to Churchill and Surprenant (2004), the quick raise of usage of Internet
technology, in addition to, the methodical development of internet technology has shifted
the mode products are purchased and sold, resultant to the extraordinary increase in the
expenditure by e-buyers. Though, much dissimilarity about online buys has been exposed
due to the several e-shoppers’ behaviors and the kinds of offered goods through
contextual advertisement. Jarvenpaa and Todd (2005) described that e-shoppers use this
technology not just to purchase the goods online, other than furthermore to evaluate rates,
features of product and after sale facilities e-shoppers will get if e-shoppers buy the goods
from an exact online store. In the view of Jarvenpaa et al (2003), online sellers
understand the factors influencing e-shoppers' electronic buy decisions, and how e-
shoppers take these buying decisions, online sellers are able expand their advertising
approaches to exchange prospective e-shoppers to real ones, and furthermore to hold
current e-shoppers. This research work is anticipated to develop their realizing of e-
shoppers buying attitude. As well, a few precious insights on how to expand successful
advertising program through contextual advertising to remain victory in the rigorous
online marketplace will be demonstrated to online sellers (Lohse and Spiller, 2000).

2.2 Contextual Advertising – A Brief View:

According to Lohse et al (2000), contextual advertising is a form of targeted advertising
for advertisements appearing on websites or other media, such as content displayed in
mobile browsers. The advertisements themselves are selected and served by automated
systems based on the content displayed to the user. A contextual advertising system scans
the text of a website for keywords and returns advertisements to the webpage based on
what the user is viewing. The ads can be showed on the online websites otherwise as pop-
up advertisements. Such as, if the e-shopper is looking a webpage pertaining to sports and
that web page employs contextual ads, the online shopper also see ads for sports-related
organizations, for example memorabilia traders otherwise ticket vendors. Contextual ads
are furthermore employed through search engines to show ads on their web pages
depended on the related words in the online shopper's inquiry (Hoffman et al, 2006).

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2.3 Evaluation of Online Contextual Advertising:
The online contextual advertising performs a chief function in several organizations’
advertising methods, reporting for $15.6bn in total investing in 2008 (John, 2007).
Contextual advertising currently varies from fact list of the upcoming days to the further
effective contextual advertisements allowed through online advertisement. Even though
contextual advertising system has improved to a huge level, online shoppers’ response in
the direction of contextual ads did not develop over the years. Furthermore, traditional
advertising rates have increasingly declined (Butler and Peppard, 2001). A few invasive
online contextual ads methods have aroused strong unenthusiastic response from online
shoppers (Chen et al, 2000).

In spite of its beginning like an communicative advertisement structure that must

magnetize e-shoppers, online contextual advertisement currently survives the threat of
turning into a different “push” source and being refused through e-shoppers as with old
advertisement methods. These improvements work alongside the style of mixed
advertising systems. These advertisement systems asserts the harmonization of selling
actions to shape a determined message with shareholders (Baty and Lee 2004), which
entails the contribution of e-shoppers and a want to receive e-shopper perceptions into
thoughtfulness. Consequently, different effective interaction with e-shoppers must be at
the essential of adverting practices (Miyazaki et al, 2001). The similar attitude is
replicated in contextual advertising, which handles e-shoppers like an associate in the
selling procedure and supports a further friendly move to advertising and selling products
online. This recommends that, for advertising to be really successful to current’s extra
cautious and difficult e-shoppers, it requires to place e-shoppers back into the situation
and authorize them whereas receiving the dialogue all over the system. This matter is
particularly vital to online contextual advertising technique, because it is related with the
very communicative method of advertising and has the power of supporting the
advertising sector in the direction of the correct way (Stewart et al, 2002).
2.4 Role of internet in online contextual advertising:

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According to (Speck et al, 2000), like an effective emerged online advertising technique,
the contextual advertising has the great capability for including e-shoppers perceptions
and choices into the advertising procedure and addressing the unenthusiastic connotation
that approaches with conventional advertising systems. According to Bell (2008),
contextual advertising is a great method that enables effective interaction among e-
shoppers and sellers.

Through a different set of contextual advertising instruments, online sellers are

able include in successful multi-stage interaction with e-shoppers (Martin et al, 2003).
Such as, through the early support of banner advertisements otherwise online search
engine effectiveness, organizations are able to pull potential e-shoppers to their online
web pages for expensive goods information and good brand knowledge. The employ of
online societies are able to more intensify e-shoppers’ recognition and connection with
the product. McMillan (2004) argued that at every stage of the procedure, e-shoppers are
able to vigorously contribute through providing criticism to organizations and through
managing the product information they get. A few online advertising systems, for
example advertisement through search engine, give extremely aimed selling messages to
e-shoppers correctly when e-shoppers require the product information.

These all support to strongly good consideration and understanding of e-shoppers

requirements and choices, which must support to extra successful online contextual
advertising. In the current time, the similar traits of the internet technology furthermore
show exclusive confronts to online sellers (Koslow et al, 2006). The effective potential of
the contextual advertising provides e-shoppers with extra authority. Consequently, e-
shoppers are liable to be extra challenging and to be less understanding of e-buyers
interaction from online advertisers (Gallagher et al, 2001). The extra objective based and
great participation behaviour of online advertising employ furthermore signifies that
interruption through advertising will generate extra irritation between e-shoppers. While
a few online advertising structures for example interstitials attract e-shoppers to far from
their chief objectives to reply to the advertisements, online advertisers have been
discovered to generate reactance between e-shoppers and to support to unenthusiastic

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viewpoint of the online advertiser and the online displayed goods (Hofacker and Murphy,
2000). The chief understanding for an e-advertiser is to raise the advantages of the self-
decided and attractive manner of the online advertisement system, and in the interim
evade unpleasant and extremely attractive advertising dialogues to e-shoppers who do not
desire to communicate (Ha and Hoch, 2003).

2.5 Response of e-Shoppers towards Online Contextual Advertising:

According to Tao et al (2009), the increase in the amount of e-shoppers is larger than the
increase in Internet users, demonstrating that further internet users are turning into
relaxed to purchase online. Moreover, not just does the amount adopter develop other
than furthermore the amount of their buys is rationally raised (Rowley, 2006). The two
very effectively mentioned causes for e-shopping have been expediency and price
(Sweeney, 2006). The ability of buying without leaving their resident is of main
viewpoint to several e-shoppers. Furthermore, the use of online contextual advertising
methods for product rate searching and contrast offers an extra benefit in e-shoppers’ last
choice, because e-shoppers are able to buy their required goods in the lowest accessible
price (Smith and Taylor, 2004).

Moreover, safety and privacy have been the huge worries (Mehta, 2000), resultant
several persons to browse the online website for informational issues than for e-
purchasing. Whereas every online advertising system is exclusive, online contextual
advertising largely includes the similar inventive standards of contextual advertising like
offline advertising technique, because every online advertiser and their firms should
know systems of product usage and make contextual advertisement greatly suited to e-
shoppers at the moment of watching those advertisements. Consequently, and given that
Cho and Cheon (2003), perception is the inclusive typology to that time, and offered its
resemblance to the greatly broadly allowed assessment model for inventive outcomes,
their perception was utilized like an beginning stage with which to discover inventiveness
in online contextual advertising. As well as the influence of faith and related threats
related with e-purchasing, Satisfaction of the e-purchasing feeling is furthermore a
significant factor of holding e-shoppers (Verma, 2009). A lot of e-shoppers reply that

15
they would not purchase on a exact online website second time if e-shoppers had an
repulsive experience with it.

Online purchasing satisfaction is completely and extensively concerned equally to

behaviors and purposes in the direction of purchasing on the web (Yi, 2000). Purchasing
the product through online is, though, a great experience from purchasing in a bodily
retail shop. One chief issue of dissimilarity survives with the shop impressive (Robbin,
2007). This condition explains the bodily factors of a shop; for example colours, music
type, volume of music and tempo and setting of goods. Retail shop impressive has a
straight impact on purchaser’s humor and manner (Shatz, 2009). Online purchasing stores
so far may not completely create the atmosphere of a bodily retail shop on the level of the
retractions of instruments. Therefore, the method form of the electronic purchasing
experience should recompense for the failure of conventional in-store atmosphere. The
outcome of supposed easiness of using the online web page and of transactional
authority, differ with the kind of duty the e-shopper is accepting. Rex and Nigel (2006)
examined the influences of three recognized channel facilities; interactions, allocation
and convenience; and four kinds of e-shopper purchasing directions; fun, empirical,
expediency and economic. Their outcomes demonstrated that e-shopper purchasing
attitude was influenced through a combination of e-shopper purchasing direction and
professed channel facilities. Rutz. and Bucklin (2009) suggested that two wide
classifications of manner in which e-shoppers include during the stage of pre-buy on the
online website are intention based and experiential attitude of e-shopper.

They furthermore demonstrated that the huge knowledge is a critical ancestor of

e-buying attitude of e-shoppers. According to Wang et al (2008), when e-purchasers are
in the sequential mode, inappropriate considerations and views are searched out and e-
shoppers are engrossed in the communication with the online web pages. Because huge
knowledge happens throughout system navigation, a matter online advertisers should
understand is whether e-shoppers' abilities are capable to gather all confronts of the
practical surroundings. In Ronald (2005)'s research it was established that talent, confront
and concentrated purpose are important ancestors of flow this purchasing habits and

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liveliness is regarded as a significant pointer of flow. The best inspiration level
assumption can be appropriate to get the perception of good humor. Rick (2008)
described the best inspiration stage in that a middle stage of encouragement acquired
from the atmosphere communicates to the mainly suitable influential response Hallerman
(2009). The acceptance of this assumption is able to outcome in the view of easiness of
use and an optimistic approach in the direction of the online website, in addition to a real
buy. Alternatively, the purity for product related information excess happening from the
open flow of goods information raises e-shoppers' feeling of insecurity, which stokes the
investigating action to turn into psychologically expensive (Cho, 2004). Thus, the
greatly-structured data package will create a competitive benefit.

2.6 Influence of Contextual Advertising on Purchase Behavior:

E-shoppers perception in the direction of online contextual advertising is an important
aspect influencing real purchasing attitude. Tedeschi (2002) suggested a model of
manners and buying purpose in the direction of online purchasing in general. This model
comprised many pointers, associating the different groups; the importance of the goods,
the purchasing knowledge, and the excellence of facility provided through the online
website and the threat viewpoints of online contextual advertising.

In the study carried out by Lee et al (2001), several aspects related with e-
shoppers' attitude of e-purchasing were extorted. Between those aspects the threat
viewpoint of e-shoppers was revealed to be the chief discriminator among e-shoppers
buying behaviour and shoppers not purchasing online. A different selective aspect was;
authority over, and expediency of, the purchasing procedure, capability of products,
consumer facility and simple use of the online purchasing site. In a different research,
Peterson et al (1998) tested a model of e-shoppers behaviour in the direction of exact
online stores, in which e-shopper manners of the online store's status and mass were
understood to influence e-shoppers faith about the online contextual advertising. The
degree of faith was absolutely associated with the behaviour in the direction of the
contextual advertising, and inversely associated to the viewpoint of the issues engaged in
purchasing from that online web site. Robert (2005), concluded that the manner and the
risk awareness influenced the e-shoppers purpose to purchase from the online store.

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 E-shoppers’ supposed issues related with contextual advertising have a crucial
impact on their decision taking. As per the point of view of Robert (2005), the risk
attitude of consumer is submitted the faith regarding probabilities of achievements and
losses external of thoughts that involve the connections through the exact trustee (Butch
and Richard, 2007). However a few recent study recommends that perception about risk
can perform an unimportant job in the implementation of contextual advertising (Ronald,
2005), current outcomes from many researches have find out that e-shoppers' view point
about risk in contextual advertising is a chief obstruction to the prospect development of
online contextual advertising (Angrist and Steffen, 2009). E-shoppers risk viewpoints
related to contextual advertising and views about e-purchasing are chiefly concerned to
factors engaging the privacy and safety of information, the safety of e-shopping systems
and the improbability of quality of product.

According to Drèze and Hussherr (2004), there is a link between faith and risk.
The main results of faith are that it decreases the e-shopper's view point of risk related
with opportunistic attitude through the online advertiser (Verma, 2009). Need of faith of
e-shopper is often reported as the cause for e-shoppers not buying from online websites,
because faith is regarded like an significant aspect under situations of insecurity and
threat in conventional theories. Mehta (2000) find out different groups of faith concerned
matters: "individual information, quality of product and price of product, consumer
service, and shop occurrence". Like a new shape of business action, e-purchasing engages
further improbability and threat than conventional purchasing. In the practical
atmosphere, an e-shopper may not bodily ensure the product quality before making a buy,
otherwise check the security and privacy of giving sensitive personal and monetary
information; e. g., all details of credit card; by the online website to a party whose actions
and objectives can be difficult to forecast (Ghose and Sha, 2009).

According to Anderson et al (2006), in online purchasing system, there is not

huge data accessible to the purchaser about the vendor, former to buy. An e-purchaser
through a high partiality to faith will extra probable is a potential e-shopper than a
purchaser through a lower predilection. Rowley (2006) suggested that capability,
kindness and honesty comprise the major parts of dependability. Capability submits to

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abilities, potentials and traits that an online advertiser has in a particular area. Therefore,
online sellers require convincing e-shoppers about the capability of their organizations in
the e-shopping trade. Kindness is the degree to which the online advertiser is presumed
through the e-purchaser as wanting to 'do better' (Smith and Taylor, 2004).

According to Anckaert et al (2008), online advertisers have to induce e-shoppers

that they authentically desire to do great activities for e-shoppers, rather than only
increase revenue. Honesty submits to the e-shopper's opinion that the online contextual
advertisement remains to a set of standards which the e-shopper discovers satisfactory. A
great level of faith through e-shoppers toward contextual advertising has been discovered
to motivate favourable attitudes and manner (Tao et al, 2009). An e-shopper's faith in a
contextual advertisement is able to be consideration as the e-shopper's faith straightly in
the online contextual advertising. However, Kenny and Marshall (2000) argued that the
success of third-party faith, guarantee entities and the communal key encryption
infrastructure for making sure monetary safety, are the essential victory aspects for
building e-shopper faith in online contextual advertising. Gallagher et al (2001)
recommended that faith in the online contextual advertising is essential, other than not
adequate, for an e-shopper purchasing behaviour to happen. The e-shopper should
furthermore faith on the advertising method for online advertising.

2.7 Effect of Online Contextual Advertising on Consumer Attitude:

Making traits of a contextual advertising were found to influence e-shoppers' e-
purchasing decision. Havlena and Graham (2004) established that online website
presentation is a chief ancestor of e-shopper happiness. Another factors; for example
reasonable support, technical traits, information purity and product traits; are furthermore
analytical aspects to e-shopper fulfillment. Through employing a sample of e-purchasers,
Koslow et al (2006) find out different chief sizes of business to consumer online web
sites; data content, structure, safety and privacy. They argued that, however each aspect
has an effect on the buying purpose; safety and privacy were discovered to have superior

19
effect on the buying objective of e-shoppers. McMillan (2004) examined the aspects
which build commercial advertising web sites famous.

They discovered that a huge every day hit-rate is powerfully affected through the
amount of information made to the online contextual advertising in the previous three
month time period. There are many connections to other online contextual advertising
was furthermore find out to magnetize e-shoppers amount. Mehta (2005) used a
regression model to forecast online visitors and sales incomes, because a purpose of
advertisement system elements and online store navigation characteristics. The outcomes
specified that comprising new goods in the online store and inserting an inquiry section
magnetized extra number of visitors (Barker and Galasinsky, 2007). Offering a response
section for e-shoppers will support to more sales. Lastly, they find out that updated
product lists importantly influenced sales (Speck et al, 2000).

2.8 Online Advertising – A Cost Effective Solution:

Rowley (2006) argued that internet technology is shifting the mode of buying products
and services, and has quickly developed into a worldwide occurrence. Several
organizations have trying to using the online advertising with the objective of cutting
selling expenses, thus decreasing the rate of their goods so as to stay in front of in
extremely competitive marketplaces (Bao et al, 2008). Organizations furthermore employ
the online system to communicate, converse and distribute information, to advertise the
product, to get response and furthermore to carry out satisfaction surveys with e-
shoppers. Academic outcomes, the Indian advertising sector has viewed in current times
the stable refuse of reliance on TV ads, an online advertising shape that has been
constantly rated because the mainly unenthusiastic through e-shoppers due to their
invasive and assertive nature (McMillan, 2004). Online sellers are currently applying
more suitable methods for example product advertisement in television ads and are
changing their concentration to fewer unpleasant media for example print media. Taken
mutually, intellectual and business proofs equally point to integrate e-shoppers’
interaction favorites into contextual advertising (Lee et al, 2001).

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2.9 Usage and Trends in Online Contextual Advertising:
According to Bell (2008), in the case of online contextual advertising, advertising is very
significant, that organizations distribute a great amount of their financial plan in the
direction advertising and selling. They can employ several modes to receive their goods
to the ears and eyes of the e-shopper for example advertising in newspapers and
magazines otherwise big advertisement space in print media (Bennett, 2005). One way
they can take benefit of is online contextual advertising method. When organizations
move online advertisement to sell their goods, they discover not just do they increase
their sales level, other than they are able to furthermore advertise in some selective places
for small otherwise no expense to them (Ha and Hoch, 2003). This supports them in two
different modes: it receives the goods into the control of the e-shopper and the
organization revenues extra because of fewer expenses.

There are several modes to advertise through online contextual advertising.

McMillan (2004) described that organizations can employ pop-ups otherwise banners.
They can employ software that finds email addresses from websites otherwise rent lists to
endorse their goods or services. Each of these approaches that have been employed in the
previous time, other than there is a fresh method that is being utilized currently. This
approach is famous as online contextual advertising. Online contextual advertising is a
technically depended system that enables online sellers to drive real-time aimed messages
to e-shoppers (Belch and Belch, 2009). This is not a technique where online visitors click
on a few type of text otherwise banner link. In its place it is a improved technique as it
has been proven to work (Hofacker and Murphy, 2000). Online contextual advertising
technique performs through employing the e-shopper's online attitudes and manner to
understand what the online user is searching for. This method just the advertisements the
visitor desires to search at is appear. Online search engines are performing this action
currently (Bellman and Rossiter, 2004). Online websites are understand and employing
the concept and working with it. They understand this kind of advertising technique
performs better. The second time they approach to online search engine and type in a
keyword, and after this action the see what contextual advertisement they found with the
search outcomes (McMillan, 2004). Online advertisers understand this is the greatest

21
method to approach their e-shoppers as they are aiming just the ones who are
concentrated in their goods. They display just the contextual advertisement that attracts
their e-shoppers. Online seller’s also aim sure URLs depended on what their e-shoppers
want to click on whereas browsing these websites. They hold these prime actions
recorded to understand what their e-shoppers are doing and searching for (Belch and
Belch, 2004). This outcome in extra interest and this turn in generate extra online sales
for them. For example online contextual advertising is Google's AdSense agenda. A
different action is Keywords Match through Yahoo! Search Marketing. A different
business that employs online advertising is Miva (previously famous as find what)
(Martin et al, 2003). Online contextual advertising is extremely favorable for every type
of content-based websites such as publisher and news websites in addition to websites of
small enterprises and also individual blogs.

Though for their site to increase their revenue from the online contextual
advertisements on their website their website's content must be of superior quality,
defining that it must be affluent, applicable, and restructured on a usual basis. Hofacker
and Murphy (2000) argued that a website with deprived information and that employs
online contextual advertising would mainly liable point its objective viewers to an
additional website that is of good quality. If this takes place then their viewers will very
possible income to their opponent's website rather than their personal website reasoning
them to lose profit. News websites and publishers would mainly most likely have no
trouble in serving applicable and efficient information other than this is able to be
confronting to small enterprises and individual websites. The implementation of content
administration systems might assist in these types of matters, other than even with a great
content administration system more work is needed to make sure that the information is
of great quality (Chaffey et al, 2006). A better mode for them to boost their profits from
online contextual advertising is through implementing a search engine in their website.
Google's Ad sense and proposal equally apply contextual advertisements on their search
results page. By using a search engine in online website the possibility of users clicking
on an advertisement will raise and therefore will their earnings (Ha and Hoch, 2003).
2.10 Success or Failure of Contextual Advertising:

22
To start with let’s describe what contextual advertisement indicates. Online contextual
advertisement is ads that seem just on the visitor’s appeal in reply to a visitor’s question
and contextually aimed advertising in relationship with his main purpose. Actually there
are many types of online contextual advertisement. In the beginning let’s talk about
advertisement through online search engine (Rowley, 2006). It is strongly related with
search traffic because they could have supposed. To define easily it’s that advertisement
displaying in online search engines. There is no uncertainty that they understand for
confident that Google is very famous online search engine across the globe. Also online
users realize this clear reality (Burke and Stets, 2003). They are able to utilize this online
search engine for their personal search through situating their contextual advertisements
to compensate for the alteration. The next type of contextual advertising described as a
context-sensitive advertising (Kenny and Marshall, 2000). This type of contextual
advertisement is showed on these online websites, based on the main subject of the
webpage.

Caple (2008) described that during the previous time age a lot of persons choose a
professed behavioral technology. This signifies that it is support to e-shoppers like a
visitor of the Internet to execute different characters based on their main purpose.
Therefore in this matter they are able to demonstrate just advertisements they are actually
interested in. Another kind of this contextual advertisement is banner ads (Dahlen, 2007).
This type of advertising is showed based on the search question otherwise related to the
query of the online webpage. Actually when performing with contextual advertisement
user must use into account true levels like contents, advertisement program, preparation,
making and configuring and surely evaluation of competence (Bell, 2008). A seller is
able to generate a big error when dealing with an ad organization in each those phases
described above. These processes are able to be separated into three elements. The
starting phase is preparation and planning for their ad program, the next phase is
formation and arrangement, and after that measurement of efficiency (Carty and Peppin,
2001). A better advertiser will not at all overlook all of those levels if he desires to save
his cash and achieve a great and positive outcome. Every stage is very significant and
each of them is the essential chief to their success (Stewart et al, 2002).

23
2.11 Contextual Advertising – Cost Advantages:
Online contextual advertisement is not expensive than old advertisement methods as it is
always target the great level of e-shoppers and online visitors. Online users looking for an
online search engine advertisement have autonomously designed and type exact
keywords and are usually looking for what the contextual advertisement offered them.
Online contextual advertising, though, seem merely as an online user is seeing a website
that includes definite keywords. Inside this framework, definite websites generate
visitor’s volume of real deprived quality that they are able to create a complete contextual
promotion almost valueless (Ducoffe, 2008). Online contextual advertisement has a
benefit over the television and print advertisement promotions. Whereas the better
television advertisement stimulates interest, and the effectual printing advertisement in
newspaper provides little knowledge about product or service, the result achieves
dissolute over the days. When persons are really prepared to purchase, their ads can be
off and a competitor’s operation can be on, and their prospective e-shoppers have no
mode of recovering their previous advertisements (Creswell, 2007). Marketing bookings
for contextual advertisement is typically completed for whole months otherwise quarters
if not for a whole year.

The advertisements are able to be appeared each day and each hour of the day
otherwise might throughout the time age for which the booking is done (Miyazaki et al,
2001). There are online network in India that are influential derivers for their
advertisement communication – websites such as rediff.com and indiatimes.com for a
common viewers, particularly non reliable Indians, and for fast moving consumer
products, domain-b.com for a luxury trade and financier viewers, specialized online
websites such as prdomain.com to deal with media people and financiers, naukri.com if
they desire low-grade stage IT sector jobs, and so on (Coyle and Gould, 2007).

According to McMillan (2004), advertisements which are based on web that

declining the advertising earning for several online site and banner advertising in this
framework. Be grateful to the “online contextual advertisement regulation of retreating
returns,” this is a normal succession for banner advertisement because this online

24
technology persists to develop (Busacca et al, 2010). Banner advertisements are turning
into less effectual. Many online websites show that their standard-size banner
advertisements (over 90% of every customer-based websites transmit banner
advertisements that are 459 pixels through 68 pixels) have click-by rates of among 0.4%
and 0.6%. That is, four to six persons for each thousand spectators click by the
advertisement, through the median distorted in the direction of the ending point of this
array (Stewart et al, 2002). The price of personal banner ads charged from approximately
$8 to $71 at the finish of 2008. Individual advertising rates for each banner
advertisements will persist to drop by 19% to 32% for each advertisement until 2008
(Busacca et al, 2010). An open viewpoint on assessing click through and reply charges
for e-mail and banners is not suggested. Only because it’s not possible to exactly assess
the achievement rate of a print advertising otherwise television advertisement, therefore,
also, is it not possible to compute the cost of brand-building that a exact e-mail otherwise
banner is able to create. In several examples, perception regarding product is able to be
increase however instant click through are not approaching (Rowley, 2006).

2.12 Summary:
Online advertisers are worrying to separate ever more limited advertising budgets
between several online advertising methods. Together with the growth of online
contextual advertising, researchers persist to clarify e-shoppers' perception towards online
contextual advertising. A crucial consideration of e-shoppers perception in the online
contextual advertising, as in the internet region, may not be achieved if the aspects of this
advertising technique influencing the buying decision are overlooked otherwise get the
wrong idea (Tao et al, 2009). Such as, e-shoppers' consideration regarding need of
prospect to check goods before buy are related to the exact issue influencing the e-
purchasing decision. Thus, many researchers suggested that e-shoppers buying attitude in
online purchases can be basically diverse from that in the conventional atmosphere
(Verma, 2009). Further regular e-shoppers are anticipated to use internet for e-buying
extra frequently because it improves their faith in the relevant site than for fewer frequent
e-shoppers. If E-advertisers plan to overlook the primary realities regarding e-shoppers
perception towards contextual advertising, some of that assures of e-advertising in the

25
business to consumer term will not be satisfied (Dalal et al, 2005). Consequently,
different effective interaction with e-shoppers must be at the essential of adverting
practices. The employ of online societies are able to more intensify e-shoppers’
recognition and connection with the product (Diao and Sundar, 2004). At every stage of
the procedure, e-shoppers are able to vigorously contribute through providing criticism to
organizations and through managing the product information they get. The extra
objective based and great participation behaviour of online advertising employ
furthermore signifies that interruption through advertising will generate extra irritation
between e-shoppers (Havlena and Graham, 2004).

Chapter 3: Research Methodology

3.1 Introduction:

26
According to Saunders et al (2003), while conducting a research study, a researcher needs
to first understand the significance of the research and must make the appropriate
selection of research component to carry out the research. The research contains all the
actions performed by a person and these actions include searching about a topic and
examination for all kind of academic applications. The core objective behind selecting
and implementing the best method for doing the research is to better achieve the research
objectives and developing the person knowledge about the study topic with the help of
the scientific evidences. The use of suitable method for study increases the interest and
motivates the researcher to done the more valuable and effective research and analysis.
The research methodology presents the all different kinds of methods which are used in
doing the research work more effectively. A research work contains all the necessary
functions such as analysis of data, presentation of data et cetera. But collection of data
regarding research topic to fulfil the aims and objective of the research is the chief task
done by the researcher in his research.

Moreover the research type is the chief basis for selecting the best method for
collecting the data for completing the study. The research describes as a qualitative
research otherwise the quantitative research. In case of qualitative research there is a
strong need to get more in-depth information about the research topic and after that the
researcher done the examination and data interpretation in the discussion and argument
section of the report. Though on the other side in case of quantitative research, the
researcher has collected the numbers and quantitative measures and with the help of these
collected data the researcher has done analysis with the help of charts and graphs. In this
research work, the researcher provided the in-depth knowledge about the effectiveness of
online contextual advertising on e-shoppers in India. Thus the research has done by using
the quantitative data. In this chapter the researcher provides the in-depth data regarding
the methodology employed in this study for completing all the processes.

3.2 Research Objective and Aim:

The aim of this research is to identifying the effectiveness of online contextual
advertising among the e-shoppers in India. Furthermore the research is trying to identify

27
the customer response toward online contextual advertising and current issues related
with online contextual advertising. This research also discovers the current trends in the
online contextual advertising. The suitable research methodology assists the research to
fulfill his research objectives. The research methodology gives the specific reason behind
conducting a study. With using the reference of the online advertising, the researcher has
aimed at completing the following research objectives in this study:

o Response of E-shoppers towards contextual advertising

o Identification of current uses and trends of contextual advertising.
o To try to get a feedback from a few businesses that have used contextual
advertising, in order to assess its success or failure
o Economic viability of using contextual advertising – whether it is cheaper to use
as compared to other sources of advertising such as T.V. adverts, billboards,
magazine ads etc.

Advertising is one of the most important activities that help businesses to promote
themselves. It also creates brand awareness amongst buyers. In the recent years the
World Wide Web has significantly evolved and has given rise to a borderless business
world. Due to this the above mentioned research topic has been chosen by the author in
order to test the success or failure of one of the newest advertising concepts in the current
world.

3.3 Research Question:

In order to achieve the above listed objectives, the research study answered the following
research questions:
o How online contextual advertising influence the consumer purchase behavior?
o How consumers perceive the online contextual advertisement?
o Whether online contextual advertising is cost effective solution for businesses?
3.4 Research Methodology:
The researcher has used the research onion in designing the research methodology.
Saunders et al (2003) has provided the research onion under which the researcher can

28
make the appropriate selection of the research components to be used in collecting the
information and analyzing the data. Each layer of the research onion gives the fair idea to
the researcher to make the appropriate selection of the research components. In the view
of Easterby Smith (2003), by using the suitable methodology for research always brings
the needed outcomes and learning from the research work. Research methodology is a
vital part of the research; the researcher must check the all available research methods
before choosing the appropriate method for their research work among them and by
doing this effort the researcher is able to find out the effective research method for their
study (Saunders, 2003). By the assistance of the research methodology the researcher can
choose the effective research methodology for carrying out their research work. Saunders
et al suggests that to get the right response regarding their philosophy of research,
research strategy and research approaches are to be used to fulfill the study aims (Fisher,
2004).

3.4.1 Research Philosophy:

The selection of research philosophy is the first layer of the research onion in which the
researcher can make the selection amongst interpretive or positivism research philosophy.
However it would be difficult to peel out the primary layer of research onion since the
aims and objectives of the research needs to be correlated with the research philosophy.
In this research, the researcher has used interpretivism research philosophy as it enables
the researcher to understand the behavior and attitude of the consumers towards the
online con textual advertising. Also the positivism research philosophy covers only the
favorable outcomes of the research and do not have any critical thinking approach while
analyzing the data. Moreover the interpretive research philosophy is more useful where
the researcher requires conducting the behavioral study. Hence the interpretive research
philosophy is appropriate and positivism research philosophy has been rejected in this
study.

3.4.2 Research Approach:

According to the research onion developed by Saunders et al (2003), the second layer of
the research onion provided the research approach to be used. The research approach

29
enables the researcher to ensure the right selection of data collection sources and data
analysis. Under the second layer of research onion, the deductive, inductive and
abductive research approaches are available to make the selection. Since the researcher
has emphasized on online contextual advertising in which the influence of online
contextual advertising and influencing behaviour needs to be analyzed. Therefore it is
required to identify the information from feasible and reliable sources. In this researcher
has selected both the quantitative and qualitative approach. All these aspects are covered
under the inductive approach as it include both the qualitative and quantitative research
approaches and enable the researcher to understand the significance of sources where the
data would have been collected. On the other hand the deductive approach is useful only
where the research needs to analyze the market scope and trends which is not at all
matching with the aim of the study. Also the abductive research approach is useful where
the research has emphasis only on the theoretical aspect of the research. While in this
research the researcher wants to cover both the theoretical and practical aspect of the
research. Hence inductive research approach has been accepted and ad-adductive &
deductive research approached has been rejected (Fisher, 2004).

3.4.3 Research Strategy:

The third layer of the research provided the research strategy. Under the research strategy
the researcher make the selection to address the research questions. In this research, the
research has used both the qualitative and qualitative research methods. Both the primary
and secondary data has been collected in this study to get the deeper understanding of the
research work. The detailed description of each data collected is described in the data
collection section. As the research has emphasized on the behaviour of the consumer
towards the inline contextual advertising therefore it was essential for the research to
cover every aspect of the research within the limited time period. Therefore both the
qualitative and quantitative methods have been applied to collect the data and analyze the
data (Saunders et al, 2003). Under the qualitative research methods, the discussion based
analysis has been presented under the research along with the graphical presentation of
the data. On the other hand the quantitative methods have been used to test the hypothesis

30
and conducted some statistical test analysis such as correlation and t-test using SPSS and
MS Excel. The following hypotheses have been tested in this study (Fisher, 2004).

H1: Online contextual advertisement influences the consumer purchase behaviour.

H2: Online contextual advertisement is more effective than the traditional advertising.

3.5 Data Collection Methods:

As discussed in section 3.4.3, the researcher has used both the qualitative and quantitative
research methods for collecting and analyzing the data. In the fulfilment of qualitative ans
quantitative part, the research has collected the secondary data as well as primary data o
gain the deeper understanding of the research, addressing the research questions and
testing of hypothesis. Below is given the description of each type of data collected in this
study.

3.5.1 Secondary Data:

Secondary data has been collected through various secondary sources such as websites,
academic journals, research articles, books related to consumer behaviour and online
advertising, new articles and web articles. In order to maintain the reliability of the data
only authenticated web source have been use which are more popular in the academics
such as news channel websites and news blogs. The secondary data therefore have been
utilised to develop the literature.

3.5.2 Primary Data:

According to Saunders et al (2003), the primary data needs more attention and
concentration since it is been collected from outside personnel which can have impact on
the researcher opinion and attitude. Further it could be a time consuming process if a
suitable data collection method is not applied by the researcher. In this way, structured
questionnaire method is the best tool to collect the data. Considering the opinion of
Saunders et al (2003), the researcher has used structured questionnaire including
dichotomous, multiple choice and likert scale questions (Fisher, 2004). It enables the
researcher to collect the information quickly as the respondent can easily understand the

31
questions and provide its opinion. On the other hand the open ended questions in this
study has been rejected since the responses for open ended questions are difficult to
analyze using statistical tools and need more time to administer among the respondents.
Looking at the time constraint the structured close ended questionnaire has been used by
the researcher.

3.5.2.1 Target Respondents:

As per the aim of the study, the researcher wants to analyze the consumer behaviour and
attitude towards the online contextual advertising. Therefore the target respondents
targeted in this study were general consumers of age more than 18 years, who are tech
savvy, visit internet and shop online.

3.5.2.2 Sampling and Sample Size:

In the view of Fisher (2004), the best approach of defining and targeting the consumer
sample is random sampling method. Since the universe of target respondents is large and
the researcher wants to target the specific consumers. Therefore quota sampling approach
has been used under the random sampling as appropriate over other sampling methods.
Based on the population distribution the sample weighting is applied by age, gender and
income.

Sample Size:
Target Respondent Sample Size
General Consumers of Age more than 18 years N=100

3.6 Data Analysis:

As discussed in section 3.5, both primary and secondary data has been collected by the
researcher. Also the both quantitative and qualitative data analysis methods have been
used by the researcher. Under the quantitative method, the primary data has been
collected through surveys and questionnaires method. Under the qualitative methods,
secondary data was collected from research reports, statistical reports and existing survey
results. The qualitative data collected would be used to present personal feelings,

32
opinions and buying behaviour of respondents towards contextual advertising. It has been
noticed from previous studies that qualitative data cannot always be reliable and varies
due to emotional factors amongst respondents. Therefore this was supported with the help
of the quantitative data collected. The quantitative data collected by primary and
secondary sources was used by the researcher to statistically derive whether there is a
direct correlation present between contextual advertising and its effect on buyer
behaviour or not. This was done by analysing the sample with the help of software SPSS
and Microsoft Excel. Chi2 test was used in testing the hypothesis and correlation analysis
was used to interpret the relationship between the consumer buying behaviour and online
contextual advertising. A graphical representation of the primary data was presented
along with the discussion based analysis.

3.7 Scope of the Research:

The core of conducting this research work is to understand the current scope of
contextual advertising and its effectiveness and influence of consumer purchase
behaviour. Therefore the study is going to benefit the marketers and advertising managers
to understand how they can further influence the purchase behaviour of consumer and
reduce the advertising cost with minimum use of traditional channel of advertising and
more use of the contextual advertising. In addition to this the research provided the
researcher to have relational understand about consumer behaviour and role of
advertising in general and in specific term which the research can use in its professional
career.

3.7 Reliability and Validity of Data:

Data reliability and validity is the main aspect of the research study and needs more
emphasis on data collection sources. In order to remove the biasness of the data, the
random sampling approach. The secondary data has been collected using authenticated
web sources, academic journals and books. Further to validate the information, the cross
verification of the primary data has been conducted with the secondary data (Fisher,
2004).

33
3.8 Ethical Issues:
According to Essomar Research Association, the researcher must understand the ethical
issues in data collection specifically in case of primary research. The information
provided by the researcher has been used only for the academic purpose. The
respondents’ identity and contact information has been kept confidential as per the
ESSOR guidelines. The Harvard referencing style has been adopted to acknowledge the
others work properly. In addition to this the university guidelines has been followed to
avoid the plagiarism.

Chapter 4: Findings and Analysis

4.1 Introduction:

34
In order to achieve the research objectives, the researcher has collected both the primary
and secondary data in this study. This chapter therefore includes the analysis of primary
data using qualitative and quantitative methods. The first section of this chapter includes
the graphical representation of the data along with the qualitative discussion. Quantitative
analysis is then after presented which includes the t- test and correlation analysis.

4.2 Qualitative Analysis:

The primary research has been conducted among the general consumers of age more than
18 years, who are tech savvy, visit internet and shop online. This section includes the
graphical representation of the data along with the qualitative analysis.

Q1. Do you search over the internet?

Yes,100%

No,0%

Fig. 4.1
Since the aim of the research was to understand the consumer buying behavior towards
the online contextual advertising. Therefore target respondents were general consumer
who use internet and shop online. Fig. 4.1 shows that the 100% respondents are the users
of internet for searching and buying products online. Respondents replied that they use
the internet technology for searching the product information and buying products online.
According to them internet is the best source for searching the information. By using
internet they can easily find the product. Through internet technology they can get
appropriate information about the products and services which they would like to
purchase over the internet.

35
Q2. How frequently do you surf internet in one month?

40%
35%
35%
30%
25% 25%
25%
20%
15%
10%
10%
5%
5%
0%
One time Two times Three times Four times More than
four times

Fig 4.2
According to the fig 4.2, 10% respondents replied that they visit the two times in a month
but 5% respondents replied that they visit the internet one time in a month. Fig 4.2 shows
that 25% respondents visit the internet three times in a month however, 35% respondents
replied that they visit the internet four times in a month. 25% respondents replied that
they visit the internet more than four times in a month. Fig 4.2 shows that there is big
proportion of respondents visit the internet four times in a month. Therefore it gives the
idea of the potential to identify the segment of population who surf internet frequently. It
provides the opportunity for the company and advertiser to define the customer segment
that is using the online contextual advertising system to promote their products.

Q3. Have you ever seen any contextual ad over the internet?

36
 Yes,100%

No,0%

Fig 4.3
As presented in Fig 4.3 all the respondents were targeted who have seen the contextual
advertisement while visiting the internet. The respondents replied they were noticed the
contextual add during their last internet visit. Respondents replied that when they
searching over the internet these ads were attracted them. According to them these ads
were easy to see over the internet. Respondents replied that when they open the website
these ads were appeared on the website. Some respondents ignore those advertisement
but some of them were clicked on the advertisement.

Q4. Please provide your opinion for the following statement, whether the
information provided in advertisement was appropriate.
Yes, the information provided in the advertisement was useful and appropriate.

80% 76%
70%
60%
50%
40%
30%
20% 12% 9%
10%
0% 3%
0%
Stongly Agree Don’t Know Disagree Strongly
Agree Disagree

Fig. 4.4

37
Fig 4.4 shows the agreement of the respondents towards whether the information in
online contextual advertisement is appropriate or not. 76% of the respondents are agreed
as they replied that they get sufficient information about the products and services. Also
identified in the literature and view point of Hofacker and Murphy (2000), a website
provide information that employs online contextual advertising mainly liable for
complete information. It proves a positive move for the advertisers to use online
contextual advertising.

Q5. I believe that the online contextual advertisement is an effective mode for
advertise the product over the internet.

70%
58%
60%
50%

40%

30% 25%
20%
9%
10% 3% 5%
0%
Stongly Agree Don’t Know Disagree Strongly
Agree Disagree

Fig. 4.5
Fig. 4.5 shows the opinion of respondents towards the effectiveness of advertising using
online channel. 58% of the respondents are strongly agreed that the online contextual
advertisement is an effective mode for advertise the product over the internet and 25%
are agreed with the same. In addition to this Bell (2008) stated that the online advertising
is very significant, that organizations distribute a great amount of their financial plan in
the direction advertising and selling. According to these respondents, by using the online
contextual advertising companies can easily advertise their product and by using the
internet they can reach the huge proportion of target population. Respondents replied that
they were influenced by the online contextual ads during their last visit over the internet.
But on the other hand some respondents are not support to the online contextual online
advertising. They think that these online contextual ads are not effective in case of attract
their attention. They replied that they have no interest in these types of ads. According to

38
them this is not a best idea for selling the products over the internet. According to them
these ads were only disturb them when they searching over the internet. So there is still
confusion in deciding the effectiveness of online contextual ads.

Q6. How do you perceive the online contextual advertisement? Please select one
from the following.

40%
35%
35%
30%
25%
25%
20%
20%
15%
10% 10%
10%
5%
0%
Entertaining Boring and Informative Misguiding None of the
Disturbing Above

Fig 4.6

Fig 5 shows that 10% respondents replied that online contextual advertising is boring and
disturbing. According to them these ads were only disturbed their searching process and
they were not at all magnetized by these types of ads. But on the other side 25%
respondents think that online advertising is informative. Respondents replied that online
contextual ads were providing them high level of information about the product. Just
clicking on the ad they can access into the all information about the product. 35%
respondents replied that online contextual advertising is misguiding. According to them
these advertisements were misguiding them in case of providing the right information
about the product. Respondents replied that these ads are providing the un-appropriate
information about the product. Respondents replied that these ads always misguide them
about the product and these ads just try making them to purchase the advertised product.
20% respondents replied that online contextual advertisement is entertaining. According
to them online contextual ad entertain them when they click on the ad. 10% respondents

39
have no view about online contextual adverting. As a result the above fig 4.6 shows that
respondents have a different view regarding online contextual advertisement.

Q7. I was highly influenced to purchase the product after seeing the contextual ad
over the internet.

70% 65%
60%
50%

40%

30% 25%
20%
10% 3% 5%
2%
0%
Stongly Agree Don’t Know Disagree Strongly
Agree Disagree

Fig 4.7
Fig 4.7 shows that 65% respondents are strongly agreed that online contextual ads are
influenced them to purchase the product. In respondents’ point of view these ads are very
effective to influence their purchase behavior. Respondents replied that whenever they
have seen the contextual ad over the internet during their last internet visit they induce to
try the product. So it can be said that online contextual ads are very useful in the online
advertising term and in case of increasing product awareness among its users. And also
this mode can assist the businesses to increase their sales level if they use the online
contextual advertisement tool for marketing their product. On the other hand only 7%
respondents are disagreeing and strongly disagree with the fact that online contextual ad
does not induce them to try the product. According to them, whenever they have seen the
contextual advertisement over the internet during their last internet visit the ad has not
influence them and they were not induced to purchase the product. Respondents think
that these ads are not at all effective in case of attract their attention and make them eager
to purchase the product. And some times they ignore these kinds of ads when they have
seen the contextual ads over the internet during their last internet visit.

40
Q8. I believe that the online contextual advertisement is the easiest way to get the
information about the product.

80% 75%
70%
60%
50%
40%
30%
20% 14%
10% 3% 4% 4%
0%
Stongly Agree Don’t Know Disagree Strongly
Agree Disagree

Fig 4.8
Fig 4.8 shows that the 75% respondents are strongly agreed that they perceived online
contextual advertisement is the easiest way to get the information about the product.
According to respondents, this is best and easiest way to get the all necessary information
regarding the product which they want to purchase. In their point of view this is very
simple to search the net for getting the information about the product and after that made
the online purchase. According to them, these ads are providing them all information
related to the product and they can easily read the all features of the product through
these ads. Fig 7 shows that the 4% respondents are strongly disagree with the fact that
online contextual advertisement is not the easiest way to get the information about the
product. According to them, this is not the simple to get the information about the
product over the internet through contextual ads.

41
Q9. Do you feel that online contextual advertisements are ethically executed and
presented? Please rate your opinion on the scale of 1 to 5 where 5 mean very ethical
and 1 means not at all ethical.

80% 75%
70%
60%
50%
40%
30%
20% 14%
10% 3% 4% 4%
0%
5 4 3 2 1
Very Ethical Not at all
Ethical

Fig. 4.9
Fig 4.9 shows the opinion of the respondents towards the ethical execution of the
contextual advertisements as 75% of the respondents are strongly agreed that the online
contextual advertisements are ethically executed. Also as identified in the literature that
the Organizations furthermore employ the online system to communicate, converse and
distribute information, to advertise the product, to get response and furthermore to carry
out satisfaction surveys with e-shoppers therefore it is essential that the company should
use business ethics while conducting advertisement campaign either online or through
traditional mode of communication channels.

42
Q10. Do you think that online contextual advertising is more effective than the
traditional advertising? Please rate your opinion on the scale of 1 to 5 where 5 mean
very effective and 1 means not at all effective.

70%
58%
60%
50%
40%
30%
21%
20% 13%
10% 3% 5%
0%
5 4 3 2 1
Very Effective Not at all
Effective

Fig 4.10
Fig 4.10 shows the opinion of the respondents toward the effectiveness online advertising
than the traditional advertising. 58% of the respondents are agreed that the online
advertising is very effective and 21% of the respondents are agreed with the same. On the
other hand 13% of the respondents are agreed that the online advertising is not at all
effective than the traditional advertising. While comparing it with the view of Hofacker
and Murphy, 2000), online contextual advertising is a technically depended system that
enables online sellers to drive real-time aimed messages to e-shoppers. This is a
technique where online visitors click on a few type of text otherwise banner link. In its
place it is an improved technique as it has been proven to work.

43
Q11. Please tell me which of the following problem you have ever experienced in the
online contextual advertisement?

35% 30%
30% 25%
25% 20%
20%
15% 10% 10%
10% 5%
5%
0%
They Ads are They are They are I ignore They do not
present distracting less likely irrelevant them offer a wide
misleading to make me variety of
information purchase products

Fig 4.11
Fig 9 shows that 20% respondents replied that theses online contextual ads are
distracting. 30% respondents replied that these ads are not able to make them purchase
the product. These ads are not attracting them to read the content. According to them,
these types of ads are taking their much time. 25% respondents replied that these ads are
irrelevant. Respondents replied that these ads are not relevant with the advertised product.
According to them, these ads are containing the wrong information about the product.
10% respondents replied that they were ignored the contextual ad during their last visit
over the internet. They replied that they were not clicked on the ad during their last visit
over the internet. According to them this is a very time taken process therefore they
ignore the ad. 10% respondents replied that these types of ads are only misleading them.
According to the respondents, these ads only provide the wrong but attractive information
about the product. These ads are only misguiding them but try to make the eager to
purchase the advertised product because of its attractiveness.

44
Q12. Do these advertisements are effective in remembering the products/service
which are being advertised?

Yes,85%

No,15%

Fig 4.12
Fig 10 shows that 85% respondents replied yes that these online contextual
advertisements are effective in case of remembering them about the product but 15%
respondents replied no that these online contextual advertisements are effective in case of
remembering them about the product. 85% respondents replied that they remember those
products for a long time which they have seen over the internet through contextual ads.
15% respondents replied that they do not remember those products for a long time which
they have seen over the internet through contextual ads.

4.3 Quantitative Analysis:

A quantitative analysis was conducted to understand the relationship between the
purchase behavior and online contextual advertisement using correlation analysis. Also
the following hypotheses are tested using t-test:

H1: Online contextual advertisement influences the consumer purchase behaviour.

H2: Online contextual advertisement is more effective than the traditional advertising.

45
4.3.1 Correlation Analysis:

Table 4.1 Correlation Analysis between Online Ad Influence and Online Shopper
Correlations Online_Ad_Influence Online_Shopper
Pearson
Online_Ad_Influence Correlation 1.00 0.07
Sig. (2-tailed) 0.47
N 100 100
Pearson
Online_Shopper Correlation 0.07 1.00
Sig. (2-tailed) 0.47
N 100 100

From the above table it can be seen that the online contextual advertisement and
consumer purchase behavior has positive correlation with correlation coefficient .07.
Hence it can be stated that the consumer purchase behavior is influenced by the
contextual advertisement.

4.3.2 Hypotheses Test:

Paired sample t-test at 95% confidence level has been used with the help of SPSS
software to test the following hypotheses.

H1: Online contextual advertisement influences the consumer purchase behaviour.

In order to test the above hypothesis, null hypothesis (H0) and alternative hypothesis
(H1) are formulated as below:

H0: Online contextual advertisement does not influence the consumer purchase
behaviour.
H1: Online contextual advertisement influences the consumer purchase behaviour.
If the significance value is more than .05 then the null hypothesis will be accepted
otherwise alternative hypothesis will be valid.

46
Table 4.2.1 T-test between Online Shopper and Online Ad Influence
Paired Samples Test Pair 1
Online_Shopper -
Online_Ad_Influence
Paired Differences Mean -0.59
Std. Deviation 0.552222
Std. Error Mean 0.055222
95% Confidence
Interval of the
Difference Lower -0.69957
Upper -0.48043
T -10.6841
Df 99
Sig. (2-tailed) 0E+00

From the above table it has been identified that the significance value is less than .05
therefore the null hypothesis is rejected and alternative hypothesis is accepted which
means online contextual advertisement influences the consumer purchase behaviour.

H2: Online contextual advertisement is more effective than the traditional advertising.
In order to test the above hypothesis, null hypothesis (H0) and alternative hypothesis
(H1) are formulated as below:

H0: Online contextual advertisement is not at all effective than the traditional advertising.
H1: Online contextual advertisement is more effective than the traditional advertising.

Table 4.2.2 T-test between Online Ad and Traditional Ad

Paired Samples Test Pair 1
Online_Ad_Influence -
Traditional_Ad
Paired Differences Mean 0.6
Std. Deviation 0.80403
Std. Error Mean 0.080403
95% Confidence Interval
of the Difference Lower 0.440463
Upper 0.759537
T 7.462406
Df 99
Sig. (2-tailed) .000

47
From the above table, it can be seen that the significance value is less than .05 therefore
the null hypothesis is rejected and alternative hypothesis is accepted which means online
contextual advertisement more effective than the traditional advertising.

4.4 Summary:
From the research it has been identified that the contextual ads are easy to see over the
internet. Respondents replied that when they open the website these ads were appeared on
the website. Some respondents ignore those advertisement but some of them were clicked
on the advertisement. 76% of the respondents are agreed as they replied that they get
sufficient information about the products and services. 58% of the respondents are
strongly agreed that the online contextual advertisement is an effective mode for
advertise the product over the internet and 25% are agreed with the same. According to
the respondents opinion online advertising is informative. Respondents replied that online
contextual ads were providing them high level of information about the product. Just
clicking on the ad they can access into the all information about the product. According
to the respondents online contextual ad entertain them when they click on the ad. 65%
respondents are strongly agreed that online contextual ads are influenced them to
purchase the product. In respondents’ point of view these ads are very effective to
influence their purchase behavior. Respondents replied that whenever they have seen the
contextual ad over the internet during their last internet visit they induce to try the
product. So it can be said that online contextual ads are very useful in the online
advertising term and in case of increasing product awareness among its users. And also
this mode can assist the businesses to increase their sales level if they use the online
contextual advertisement tool for marketing their product. Online contextual
advertisements are effective in case of remembering them about the product but 15%
respondents replied no that these online contextual advertisements are effective in case of
remembering them about the product. 85% respondents replied that they remember those
products for a long time which they have seen over the internet through contextual ads.
15% respondents replied that they do not remember those products for a long time which
they have seen over the internet through contextual ads. Online contextual advertisement
and consumer purchase behavior has positive correlation with correlation coefficient .07.

48
Hence it can be stated that the consumer purchase behavior is influenced by the
contextual advertisement. Online contextual advertisement influences the consumer
purchase behaviour. Online contextual advertisement is more effective than the
traditional advertising.

49
 Chapter 5: Conclusion and Recommendation

5.1 Introduction:
This chapter includes the conclusion of the research that has been drawn from the
research findings. It has been identified that the online advertising is a cost effective
solution for marketers and rising internet penetration has increased the consumers to
purchase shop online for saving time and getting convenience shopping experience.
Therefore, based on that, the researcher has also provided the recommendation for
improving the strategies towards the online contextual advertising (Coyle and Gould,
2007). The last section of this chapter includes the research limitations that have been
faced by the researcher while conducting this research study.

5.2 Conclusion:
There are several modes to promote the product through the advertising tool on the online
system. Some of the using advertisement tools are easy and simple to use. Online
contextual advertising might also increase otherwise smash their business. There are
different shapes of advertisement. Advertising through online contextual is very useful
tool and also very inexpensive (Diao and Sundar, 2004). Organizations spend big
amounts for marketing online in the hope of big revenue and incomes and thus
far0greater0risks. It is clear that organizations are eager to invest big amounts on
advertisement through contextual ads if the online advertising that0they are0paying
for0makes them0a potential and powerful business in the market place. To select the best
online advertisement that is good for them are able to be a worrying period
of0test0and0trial (Caple, 2008).

Mainly significantly they0need0to choose the right tool of online advertising that
makes more profit for the business by increasing its sales level and increasing their
customer base. Because, shopping online habits are growing now very speedily and
buying through internet advertising has developed to be very cost effective shapes of
advertising (Carty and Peppin, 2001). Some present data show that many e-shoppers on
the online is developing at such a quick rate0that0it is0forecasted that in0five0years

50
time, 56% of the0population in 0the India alone, will have a pc in0their household that is
linked to the0internet (and0have their0own 0website to advertise). With this
consideration a person may just visualize how critical it is to organize yourself currently
in the Indian marketing world online and this situation will be more critical when the
internet will0be the best source to attract customer purchasing from their company's
website. Online contextual advertisement is forecasted to be the very inexpensive tool of
advertising (Coyle and Gould, 2007). At the present time when the work is developing
speedily and in this condition where the shopper does0not have to0leave0their0home to
purchase something. Online advertising is able to be the inexpensive and easy mode to
get their products towards those customers and make big profits for their business. Each
shape advertisement is critical if they are out to corner their marketplace in the trade
sector. To promote their products online successfully they must have a good knowledge
about this advertising tool (Busacca et al, 2010).

Online advertisement in contextual form on the web is able to serve bundles of

traffic to their web. But there has a one problem in this system, the advertisers charge a
big amount for their product on the time of its sale but they do not deliver the product
quality according to its cost. Be careful when entering into online advertisement
programs where mentors call their trade and provide assurance other wise make pledges.
When e-shoppers surfing online they have seen many websites which providing all
products they need and all information about the product they sell and this will cut their
time of purchase if they purchase online also they can made payment online for the
product. Online advertisement is a dangerous gamble and is able to be expensive if
advertisers have no knowledge about the online marketing system (Busacca et al, 2010).
And also online advertising have some advantages and disadvantages, before
implementing this tool a marketer must consider all these advantages and disadvantages.
Whereas every online advertising system is exclusive, online contextual advertising
largely includes the similar inventive standards of contextual advertising like offline
advertising technique, because every online advertiser and their firms should know
systems of product usage and make contextual advertisement greatly suited to e-shoppers
at the moment of watching those advertisements. This approach is famous as online

51
contextual advertising. Online contextual advertising is a technically depended system
that enables online sellers to drive real-time aimed messages to e-shoppers. They should
learn also how to use this tool effectively and promote their business successfully through
online. This has shaped an enormous space in the marketplace and that is why online
contextual advertising system is very useful and successful shape of online advertising. A
few online advertising systems, for example advertisement through search engine, give
extremely aimed selling messages to e-shoppers correctly when e-shoppers require the
product information (Caple, 2008). The outcome of supposed easiness of using the online
web page and of transactional authority, differ with the kind of duty the e-shopper is
accepting. The acceptance of this assumption is able to outcome in the view of easiness
of use and an optimistic approach in the direction of the online website, in addition to a
real buy. A different selective aspect was; authority over, and expediency of, the
purchasing procedure, capability of products, consumer facility and simple use of the
online purchasing site (Burke and Stets, 2003). Like a new shape of business action, e-
purchasing engages further improbability and threat than conventional purchasing. Online
advertisers have to induce e-shoppers that they authentically desire to do great activities
for e-shoppers, rather than only increase revenue. Honesty submits to the e-shopper's
opinion that the online contextual advertisement remains to a set of standards which the
e-shopper discovers satisfactory (Anderson et al, 2006).

5.3 Recommendation:
At present, it is necessary for every business to make effective decisions about product
offering, pricing, distribution and promotion. Also they do not forget about 4Ps of
marketing while making these decisions. To promote a brand successfully is the main
objective of a company and in this process they want to give positive messages to their
potential customers. Therefore, companies are looking for the effective communication
tool which helps them to transmit their messages to their profitable and potential
customers. So in that case online advertising is the effective approach to do this job
successfully. In the past time people think that advertising is very complex tool for
promoted a product and communicate with customers.

52
 The internet has given the opportunity to those businesses who want to promote their
product effectively among its users and remain a strong position in the industry. The
Internet technology has generated an innovative mode for companies to interact and
communicate with their potential consumers. A lot of Internet users all over the globe are
continually developing and therefore are online marketing consultants. We have seen that
the amounts of internet users are increasing rapidly. And also we have seen that the
amounts of online advertisers are increasing rapidly. By using online system a business is
able to simply communicate and promote its product successfully to its potential and
profitable customers and also this is the main reason behind this rapid growth of online
advertisers (Rick, 2008).

This recommends that, for advertising to be really successful to current’s extra

cautious and difficult e-shoppers, it requires to place e-shoppers back into the situation
and authorize them whereas receiving the dialogue all over the system. Online advertisers
understand this is the greatest method to approach their e-shoppers as they are aiming just
the ones who are concentrated in their goods. They display just the contextual
advertisement that attracts their e-shoppers. The implementation of content
administration systems might assist in these types of matters, other than even with a great
content administration system more work is needed to make sure that the information is
of great quality (Bao et al, 2008).

 This is very simple to build an online contextual advertisement on the internet and
present their products to a big amount of internet surfers.
 A viewer can easily observe and understand the ad, for this a company must make
their online contextual ads more relevant to their products
 By using online contextual advertising companies can taking the online user's
attention while they are in a related0situation.
 Companies can done this approach through google0and other0search engine.
 Today consumers are more conscious and have a lot of choices so the advertiser
must understand those behaviors and choices before place their ad on the internet.

53
  At present time consumer0is like a0boss, so the advertisers must do only ethical
efforts not try to misguide the consumer through fake ads on internet.
 The companies must write the content clearly in simple form not in difficult
language because the customer can easily read it and understand it.
 The companies should also place some good pictures in their contextual ads
which attract the customer attention quickly and make viewer to read the ad.
 In contextual advertising content of ad is most significant thing because through
this text companies give its messages to their customers and make them sure to
purchase the product. So the advertisers try to make this text more effective and
write these texts in right manner.
 Today every person is very busy; they have no time to read advertise which
contains lot of description about the product. So the companies must try to write
these ads in short form i.e although the ad in short form but this ad must contain
all import information about the product. If the ads are in short form so that the
online visitors don’t hesitate to read them.
 If they make the ad simple and effective so the customers get the right message
about the product.
 If they use contextual advertising more strategically this can give them positive
and profitable results. Also this ad system assists them to build their business
more competitive in the marketplace.

5.4 Research Limitations:

While conducting this research study, the researcher has faced various limitations. In
primary research the sample size is 100 only which is too small and cannot predict the
reflection of whole universe. Moreover due to time constraints only consumer who are
the internet savvy were targeted and do not have perception of the consumers who rarely
visit internet. Also the limited information is provided in the literature as all the aspects
of online contextual advertisement cannot be covered with ion the limited time frame.

54
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 Appendix A – Questionnaire

Hi, my name is ____________ and I am a student pursuing ______________ from

________________ University. I am conducting an academic research study among
general consumers who are tech savvy and purchase products online. The aim of this
research is to understand the influence of contextual advertising on purchase behavior.
Your opinion would be valuable me and enable me to achieve my research objectives in
the partial fulfillment of my degree. I would assure you that your identity will be kept
confidential and information provided by you will be used only for academic purpose and
not for any commercial purpose.

Would you wish to participate in this study?

o Yes
o No

Q1. Do you search over the internet?

o Yes
o No

Q2. How frequently do you surf internet in one month?

o One time
o Two times
o Three times
o Four times
o More than four times

Q3. Have you ever seen any contextual ad over the internet?
o Yes
o No

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Q4. Please provide your opinion for the following statement, whether the information
provided in advertisement was appropriate.
Yes, the information provided in the advertisement was useful and appropriate.
o Strongly Agree
o Agree
o Don’t know
o Disagree
o Strongly Disagree

Q5. I believe that the online contextual advertisement is an effective mode for advertise
the product over the internet.
o Strongly Agree
o Agree
o Don’t know
o Disagree
o Strongly Disagree

Q6. How do you perceive the online contextual advertisement? Please select one from the
following.
o Entertaining
o Boring and Disturbing
o Informative
o Misguiding
o None of the Above

Q7. I was highly influenced to purchase the product after seeing the contextual ad over
the internet.
o Strongly Agree

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 o Agree
o Don’t know
o Disagree
o Strongly Disagree

Q8. I believe that the online contextual advertisement is the easiest way to get the
information about the product.
o Strongly Agree
o Agree
o Don’t know
o Disagree
o Strongly Disagree

Q9. Do you feel that online contextual advertisements are ethically executed and
presented? Please rate your opinion on the scale of 1 to 5 where 5 mean very ethical and
1 means not at all ethical.
5 4 3 2 1
Very Ethical Not at all Ethical

Q10. Do you think that online contextual advertising is more effective than the traditional
advertising? Please rate your opinion on the scale of 1 to 5 where 5 mean very effective
and 1 means not at all effective.
5 4 3 2 1
Very Effective Not at all Effective

Q11. Please tell me which of the following problem you have ever experienced in the
online contextual advertisement?
o They present misleading information
o Ads are distracting

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 o They are less likely to make me purchase
o They are irrelevant
o I ignore them
o They do not offer a wide variety of products

Q12. Do these advertisements are effective in remembering the products/service which

are being advertised?
o Yes
o No

Thanks for your support

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