DBA Research Proposal - RES803 _May 2024.pdf

MAY, 2024
Research Proposal
On
“Assessing the Impact of Internet Advertising on Consumer
Behaviour ”
by
SAYAN GHAR
Under the guidance
of
Dr. Godofredo Cristobal Utanes
MAY 2024

1
“Assessing the Impact of Internet Advertising on Consumer
Behaviour ”
Keywords: Consumer Behaviour, Online Ads, Internet.
Number of Words: 3647

2
TABLE OF CONTENT
CHAPTER NO. DESCRIPTION PAGE NO.
ABSTRACT 1
1 INTRODUCTION
1.1 BACKGROUND
1.2 PROBLEM STATEMENT
1.3 RESEARCH OBJECTIVE AND RESEARCH QUESTIONS
1.4 PROPOSAL CHAPTER SUMMARY
2 LITERATURE REVIEW
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
INTRODUCTION
THEORITICAL FRAMEWORK
INTERTET ADVERTISING
INTEGRATED MARKETING COMMUNICATION
EFFECTIVENESS OF INTERNET ADVERTISING
CONSUMER BEHAVIOR
INTERNET ADVERTISING AND CONSUMER
BEHAVIOR
CHAPTER SUMMARY
3 RESEARCH METHODOLOGY
3.1
3.2
3.3
3.4
3.5
3.6
3.7
INTRODUCTION
RESEARCH DESIGN
POPULATION OF THE STUDY
SAMPLE DESIGN
DATA COLLECTION
VALIDITY AND RELIABILITY
DATA ANALYSIS
4 REFERENCES

3
ABSTRACT
It is critical to comprehend consumer behavior shifts through online advertising
expenditure growth, overtaking traditional media like television and print. The
internet has been projected as an all-inclusive convenience center for many
consumer needs given the fast-paced technological advancements; from
entertainment, social networking, buying goods and services to finding
information. The doubts about the efficacy and memorability of online
advertisements despite the daily online engagements by different people have been
a major concern. The goal of this research is to analyze the efficiency of online
advertising on consumer behavior by using a Swami Vivekananda University case
study; it is located in Barrackpore-Kolkata, West Bengal. The aim of the study
was to assess the extent and manner in which online advertisement informs
potential consumers, ascertain if indeed they can remember it after being shown
for specific number of times and investigate whether it has an influence on what a
person buys. To accomplish this objective, Swami Vivekananda University
students were chosen as a subject of study using stratified sampling method
whereby 100 randomly selected respondents were chosen as participants. Primary
data are collected by using questionnaires, and are analyzed , qualitatively using
content analysis, and quantitatively using descriptive statistics with SPSS and
further presented percentages, mean averages, standard deviations and frequency
distributions while conducting regression analyses and correlation analyses on
certain relationships between variables.

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FIGURES
FIG. NO. DESCRIPTION PAGE NO

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TABLES
TABLE. NO. DESCRIPTION PAGE NO

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CHAPTER 1
INTRODUCTION
1.1 BACKGROUND
The internet has experienced significant growth in both its range of applications and
its user base, owing to its distinctive features such as flexibility, interactivity, and
personalization. This growth has made it a vital tool in areas like communication,
entertainment, education, and e-commerce (Ko et al., 2004; Koyuncu & Lien, 2003).
The advancements in information technology have transformed daily life and
business operations, enabling retailers to offer a vast array of products and services
globally at any time. As a result, the internet has become an essential advertising
medium (Silk et al., 2001). It is now regarded as one of the most important direct
marketing channels worldwide, with companies investing billions in online
advertising to enhance their returns on investment (Faber et al., 2004; Ko et al., 2004;
Korgaonkar & Wolin, 2002; Edwards, 2005; Joines et al., 2003).
The internet also empowers consumers with significant control over the information
they access about products and services. They can choose when, where, and how
much commercial content to view, which reduces the time and effort involved in
shopping by providing access to a wide range of products globally (Korgaonkar &
Wolin, 2002; Ko et al., 2004). Consumers actively seek information online with
specific goals in mind, which influences their responses to online advertisements
(Smith, 2002). The rapid development of technology has encouraged many
businesses to integrate internet advertising into their media strategies to leverage
these advancements (Calisir, 2003).
1.2 PROBLEM STATEMENT
Advertisers are expected to significantly increase their investments in internet
advertising in the coming years, surpassing traditional media like television and print
(Ducoffe, 1996; Goldsmith & Lafferty, 2002). Internet advertising encompasses a

7
range of formats, including video clips, banner ads, pop-ups, email promotions, and
interactive media (Korgaonkar & Wolin, 2002; Wolin & Korgaonkar, 2003).
The rapid growth of technology has transformed the internet into a primary platform
for communication, entertainment, shopping, and information retrieval, with
approximately 70% of users engaging with it regularly (Ko et al., 2004). However,
there is still uncertainty about the effectiveness of internet advertising, particularly
regarding consumer awareness and recall of online ads. The effectiveness of these
ads across various demographic groups remains ambiguous (Smith, 2002).
While there is substantial research on advertising in general, studies on the
effectiveness of internet advertising in specific contexts, such as Kenya, are limited.
Existing research, including studies by Wanjoga (2002) and Wakukha (2011), has
explored consumer attitudes and industry applications but has not adequately
measured the impact of internet advertising on consumer behavior.
To address these gaps, this study aims to evaluate the effectiveness of internet
advertising on consumer behavior among students at Swami Vivekananda
University, Barrackpore, Kolkata. Using a stratified sample of 100 randomly selected
respondents, the research will provide insights into how internet advertising
influences consumer behavior and decision-making (Gong & Maddox, 2003; Calisir,
2003).
1.3 RESEARCH OBJECTIVES AND RESEARCH QUESTIONS
The main objectives of this research are:
• To evaluate the effectiveness of internet advertising in terms of reach and
awareness creation.
• To assess the reliability of internet advertising based on consumer recall.
• To investigate the relationship between internet advertising and consumer
purchase decisions.

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The research questions with respect to the research are as follows:
• How effective is internet advertising in reaching the target audience?
• To what extent does internet advertising create awareness about products and
services among consumers?
• How reliable is internet advertising in terms of consumer recall?
• What factors influence the recall value of internet advertisements among
consumers?
• What is the relationship between internet advertising and consumer purchase
decisions?
• How does internet advertising influence consumer behavior and their
decision-making process?
• What role do different formats of internet advertising (e.g., banner ads, video
ads, pop-ups) play in influencing consumer purchase decisions?
1.4 CHAPTER SUMMARY
This chapter delves into the substantial expansion and influence of internet
advertising, which has emerged as a pivotal tool in communication, commerce,
and consumer interaction. Thanks to its versatile nature, the internet offers a range
of advertising formats, including banner ads, video content, and interactive
elements. This variety has attracted significant investments from companies eager
to leverage the unique opportunities presented by online platforms.
Despite the broad utilization of internet advertising, questions persist about its
effectiveness in various areas such as audience reach, brand awareness, and its
impact on consumer recall and purchasing decisions. Existing research has
identified some of these challenges but often lacks a comprehensive view of how
internet advertising performs across different contexts.
To address these issues, this study focuses on the student population at Swami
Vivekananda University, Barrackpore, Kolkata. The research aims to assess the
effectiveness of internet advertising in reaching this specific audience, determine
its reliability in terms of recall, and explore how it affects consumer buying
behavior. The goal is to provide a deeper understanding of internet advertising's
role and its effectiveness in the modern digital environment.

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CHAPTER 2
LITERATURE REVIEW
2.1 INTRODUCTION
This chapter offers an overview of the concept of internet advertising by examining
relevant literature and summarizing prior research on how effective internet
advertising is. It highlights key findings related to various measures of advertising
effectiveness.
2.2 THEORETICAL FRAMEWORK :
This study is grounded in two primary theoretical frameworks: emotional appeal
theory and classical conditioning theory. Emotional appeal theory examines how
advertisements use emotions to influence consumer behavior. Research indicates that
ads can generate various emotional responses, which can affect how consumers
perceive and respond to them. Positive emotions, for example, can enhance the
attractiveness of an ad and encourage purchases, while negative emotions can create
a sense of discomfort, pushing consumers towards solutions offered by the ad
(Aaker, Stayman, & Hagerty, 1986). However, there is often a mismatch between the
emotions advertisers intend to evoke and the actual emotional responses of
consumers (Cotte, Coulter, & Moore, 2004; Englis, 1990).
Classical conditioning theory, based on Pavlov's experiments, explains how learning
happens through association. In this theory, a neutral stimulus is repeatedly paired
with an unconditioned stimulus to produce a conditioned response. For example,
when a specific sound is associated with a reward, the sound alone can trigger a
response. Applied to marketing, this means that associating a product with positive
stimuli—such as enjoyable music—can influence consumer preferences (Gorn,
1982). However, these effects may be less noticeable when consumers are in a
deliberate decision-making mode.

10
These theories provide valuable insights into how internet advertising can impact
consumer behavior. Frequent exposure to an ad helps build brand recognition and
strengthens the association between a product and its positive attributes. Thus, both
the frequency and emotional content of internet ads are important for shaping how
consumers remember and respond to advertisements.
2.3 INTERNET ADVERTISING
The Internet, especially through the World Wide Web, has fundamentally changed
how advertising is approached compared to traditional media (Hoffman & Novak,
1996; Hearn, Mandeville, & Anthony, 1998). Unlike TV or print ads that reach broad
audiences, online advertising allows for more direct and personalized interaction.
This is thanks to tools like websites, emails, and online forums, which let advertisers
engage with individuals on a more personal level (Hoffman & Novak, 1996).
One of the biggest advantages of online advertising is its precision. Rather than
casting a wide net, advertisers can target specific groups, reducing wasted efforts and
focusing resources where they’re most effective. This shift demands a reevaluation
of traditional marketing strategies and a move towards new, more interactive
methods.
Research by Schlosser et al. (1999) reveals mixed feelings about online ads. Some
users find them useful and informative, while others feel they’re not engaging
enough to influence their purchasing decisions. Korgaonkar and Wolin (2002) found
that heavy Internet users tend to view web ads more positively compared to lighter
users. These frequent users appreciate ads that are credible and informative but may
also find them complex. Therefore, advertisers should tailor their campaigns to
different user segments, highlighting aspects like cost savings for those who shop
online regularly.
2.4 INTEGRATED MARKETING COMMUNICATION
The rise of the Internet has also driven the adoption of integrated marketing
communication (IMC) strategies. This approach combines digital and traditional
media to create a unified marketing message (Low, 2000). Unlike the traditional one-

11
to-many communication model, the Internet enables a more personal, one-to-one
interaction (Hoffman & Novak, 1996).
While traditional media like TV, radio, and print remain important, the Internet has
added a new dimension to advertising. It allows for more direct and interactive
communication with consumers, who now use the Internet for both social
interactions and shopping.
In the B2C sector, the Internet has introduced a new level of interactivity (Shiva,
1997). Instead of condensing information into brief ads, online platforms allow for
detailed and engaging content. This means advertisers can offer more comprehensive
information and foster deeper connections with their audience.
Berthon, Pitt, and Watson (1996) argue that the World Wide Web provides a unique
opportunity for marketers to connect with both new and existing customers in an
integrated way. The Internet shifts consumers from passive receivers of ads to active
participants, giving them more control over how they engage with marketing content
(Hoffman & Novak, 1996; Hoffman, Novak, & Chatterjee, 1997).
2.5 EFFECTIVENESS OF INTERNET ADVERTISING
Research into Internet advertising effectiveness has explored several factors affecting
ad recall, including the ad's characteristics, user engagement, viewing duration, and
user attitudes toward the ads and websites (Danaher & Mullarkey, 2003; Goldsmith
& Lafferty, 2002; Menon & Soman, 2002). Danaher and Mullarkey (2003) found
that while factors like website design and ad style did not notably impact recall, the
length of time a user spends on a page was crucial. They determined that viewers
needed to stay on a page for at least 40 seconds to effectively remember the ads.
Dreze and Hussherr (2003) focused on ad features like animation and frequency,
which they found enhance ad recall, whereas the size of the banner did not have a
significant impact. They concluded that the content of the ad is more critical for
recall and brand recognition than the ad's visual style. In contrast, Yoon (2003)

12
argued that visual elements of banner ads had a greater effect on consumer
preferences than text.
Attitudes towards online ads also play a significant role in recall. Goldsmith and
Lafferty (2002) discovered that positive attitudes towards a website were linked to
better recall of the advertised brands. This finding aligns with Mehta’s (2000)
research on print ads, which also highlighted that favorable attitudes improve ad
recall.
Click-through rates (CTR), which measure how often users click on an ad and visit
the advertiser’s site, are a popular metric for evaluating banner ad effectiveness
(Dreze & Hussherr, 2003; Faber et al., 2004). According to Cho (2003), a high CTR
indicates that ads successfully attract users to the target site and engage them with
the brand.
2.6 CONSUMER BEHAVIOR
Consumer behavior is the study of how individuals and groups make decisions about
purchasing, using, and disposing of products and services (Warner, 1997). It blends
elements from psychology, sociology, and economics to understand how decisions
are made and what factors influence them. This field examines not only individual
traits but also how social influences like family and friends affect buying choices
(Malcolm, 1997).
The "black box" model of consumer behavior illustrates how marketing stimuli
interact with consumer characteristics and decision-making processes. While
companies control marketing stimuli, external factors such as economic, political,
and cultural influences also play a role. The "black box" represents the internal
processes that shape consumer responses to these stimuli (Todd, 1997).
Technological advancements have improved methods for measuring consumer
behavior. Techniques such as digital video and sensors allow for detailed analysis of
consumer actions, providing insights that help businesses tailor their products and
marketing strategies (Todd, 1997).

13
Consumer behavior can be measured through surveys and observations. Surveys can
be qualitative, offering detailed insights from a smaller group, or quantitative,
providing broader data from a larger audience. Observational methods track
consumer behavior in stores, revealing useful information for optimizing product
placement and store layouts (Malcolm, 1997).
2.7 INTERNET ADVERTISING AND CONSUMER BEHAVIOR
The Internet has transformed advertising by allowing for more targeted and cost-
effective communication (Cae, 2000). However, many companies still use generic ad
experiences rather than personalizing interactions based on customer data. Emotional
responses to online ads are crucial; consumers often react emotionally to ads, which
affects their engagement (Wolhandler, 1999).
Repeated exposure to the same ads can lead to "ad blindness," where consumers start
ignoring ads they see frequently. Yoo, Suh, and Lee (2002) emphasized the role of
personal interactions in online shopping, noting that ads help consumers learn about
new products much like they use news sources. This informational function of ads
provides factual details without expressing approval or disapproval, influencing
consumer curiosity and rational decision-making (Lee, 2002).
Emotional involvement with ads can drive impulse purchases and competition for
products (Lee, 2002). Repeated advertising serves as a reminder, sometimes leading
to spontaneous purchases. Consumer loyalty or dissatisfaction often depends on
whether a product meets its advertised claims, and corporate behavior can impact
these feelings (Thorson, 2000). The Cannon-Bard Theory suggests that ads need to
evoke emotions to prompt action (Lee, 2002).
Overall, Internet advertising is becoming a crucial component of marketing
strategies. Further research is needed to fully understand its impact on consumer
responses and online purchasing decisions. This study aims to assess the

14
effectiveness of Internet advertising and its relationship with consumer behavior and
decision-making.
2.8 CHAPTER SUMMARY
This chapter explores the effectiveness of internet advertising through the lens of
emotional appeal and classical conditioning theories. It highlights how ads use
emotional triggers to influence consumer behavior and how repeated exposure to
positive stimuli can shape brand preferences. The chapter notes that the internet has
revolutionized advertising, enabling more precise and interactive methods compared
to traditional approaches. It discusses the integration of digital and traditional media
to create a unified marketing strategy. Research findings indicate that online ads can
vary in effectiveness based on factors like design, engagement, and consumer
attitudes. The chapter also emphasizes the role of consumer behavior in shaping how
ads are perceived, pointing out that emotional involvement and repeated exposure
significantly impact ad reception. Overall, it stresses the importance of continued
research to fully understand the impact of internet advertising on consumer choices.

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CHAPTER 3
RESEARCH METHODOLOGY
3.1 INTRODUCTION
This chapter outlines the methodology employed in the study, detailing the research
design, target population, sampling methods, and data collection and analysis
procedures.
3.2 RESEARCH DESIGN
Descriptive research was utilized for this study. This approach involves collecting
data that describe phenomena, which are then organized, tabulated, and visually
represented using tools like graphs and charts. The aim was to offer a clearer
understanding of online advertising effectiveness and its influence on purchase
decisions.
3.3 POPULATION OF THE STUDY
The study focused on undergraduate students at Swami Vivekananda University,
Barrackpore, Kolkata. The choice was based on their extensive exposure to online
advertising and internet use. Given that these students have access to the internet
through university-provided wireless connections, they are likely to encounter online
ads frequently.
3.4 SAMPLE DESIGN
A stratified sampling technique was employed to ensure representation across
different academic years. A total of 100 undergraduate students from various years at
Swami Vivekananda University were selected. This sampling method facilitated
focusing on key subpopulations and enhanced the accuracy of the study by allowing
different sampling techniques for each subgroup.

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3.5 DATA COLLECTION
Primary data were gathered using a structured questionnaire distributed among the
100 selected students. Questionnaires were administered in various locations around
the campus, including outside the library, in classrooms, the university square, and
hostels. Completed questionnaires were collected on the same day to ensure timely
data retrieval. The questionnaire included both open-ended and closed-ended
questions to provide comprehensive insights.
3.6 VALIDITY AND RELIABILITY
Content validity was addressed by ensuring the questionnaire covered various
aspects of internet advertising and consumer behavior. To enhance reliability, the
researcher administered all questionnaires personally, minimizing potential biases.
Pilot testing was conducted to identify and rectify any issues with the questionnaire,
ensuring consistency and accuracy in the data collected.
3.7 DATA ANALYSIS
The study utilized both nominal and ordinal scales to measure factors related to
internet advertising's impact on consumer behavior, and interval scales to explore
relationships between variables. Descriptive statistics, including mean responses and
standard deviations, were calculated to analyze the data. The collected data were
compiled, edited for consistency, and coded for analysis. Statistical analysis was
performed using SPSS, with regression and correlation analyses applied to determine
relationships between variables.

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CHAPTER 4
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