Effective Internet Advertising and its Influence on Consumer Buying Behavior

Submitted To:

Sir

MBA 5th (A) Group Member: Shahrukh Khalid (11139) Zohaib Riaz (11140)

Chapter I Introduction
Online retail is attracting an increasing numbers of consumers as well as companies. Every year more businesses set up their own web sites to reach internet users. Almost every one grows up in the world which is flooded with the mass media e.g. television, advertising, films, videos, billboards, magazines, movies, music, newspapers, and internet (Latif & Abideen, 2011). Marketing mix has four subsets i.e. product, price, place and promotion and advertising is a component of promotional mix, which is used to create awareness about product and services for taking purchase decisions. As a promotional strategy, advertising serve as a major tool in creating product awareness in the mind of a potential consumer to take final purchase decision. Advertising through all mediums influence audiences, but Internet is one of the strongest medium of advertising now a days. The power of the internet in supporting the buying behavior of the customers is interesting. Buyer behavior means the activities that come from a person or organization on buying products or services. According to Belch and Belch (2007, p.105), they defined buyer behavior as the process and activities which people engage in when they want to buy products or services. These processes and activities are composed of searching for product or service, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires. Buyer behavior also explains about the decisionmaking process of customers that can be predicted as a key to success for long-term benefit in the today business. The internet and website provide convenient services to customers, who can manage their resource efficiently by themselves. Also, the internet can reduce cost that businesses pay in providing service to support customers need. New technology, like internet, provides a new convenient and productive way to service customer as well as an easy way for customers to learn and get information about products/services. Moreover, the internet will change the service processes of business from the traditional one to the fast electronic one. The internet also plays the role of leading and motivating customer in making a decision to buy product/service.

Basic aim of this research to find out how internet advertising effect on consumer buying behavior. Another object of our research is to find out how Consumer behavior helpful for advertiser to understand the behavior of consumer in buying different situations. Another purpose is to examine the impact of the internet on buyer behavior of telecommunication eservices. Another objective of this study is to investigate factors influencing commercial transactions in the online environment.

Chapter II Literature review

Karl Mann (1999) supported that the area of buyer behavior study still left the issues about the impact of the internet and any new computer technology on buyer behavior. Similarly, Zeithaml, Bitner and Gremler (2009, p.15-16) suggested that technology provides great supports to customers in accessing the information for making decision, choices of service offering , and conveniences in contact with company and it need to be researched to understand buyer behavior with the new technology. Ehrenberg (1988) agreed that studying about penetration and re-buying process of the customer can properly predict buyer behavior aspects in the next purchases. Especially, re-buying process will be an important key in buyer behavior study. Most of the research in this area has two main streams. On the one hand, researchers see online customer behavior is different from traditional customer behavior, so they focus on finding factors that shape consumer behavior and modeling the online purchasing process (Guttman et al., 1999; Mile et al., 2000; Li and Zhang, 2002, Mcknight et al., 2002, Constantinides, 2004). On the other hand, some researchers consider online buyer behavior as next step further of traditional buyer behavior. They believe that the fundamental of online buyer behavior is similar to the traditional one but some factors would be included, especially trust and confidence (Lee, 2002, Liang and Lai, 2002, Suh and Han, 2002). Bellmann and his colleagues in 1999 who studied the analyst of online behavior found that there are two main reasons of internet buyer behavior. First, customers normally use the internet as a part of their lifestyles. Second, customers do not have much time to spend for the traditional ways of shopping. Lee (2002) found that electronic business should focus on the traditional marketing factors, for example customer-service center, security, warranty and accurate billing rather than web-savvy features or virtual storefront design. Constantinides (2004) suggested that businesses or e-marketer should be considered the Customers virtual experience as a major parameter Influencing online purchasing. Moreover, Constantinides (2004) proposed the further research question about studying the web experience from different types of web sites.

Athanassopoulos and Liakopoulos (2003) supported this idea and said that the success of telecommunication industry mainly concerns about customer issues and their behaviors that can be related to the overall performance of telecommunication industry.