IMPACT OF ONLINE SHOPPING ADVERTS ON CONSUMER BUYING RATE

IMPACT OF ONLINE SHOPPING ADVERTS ON CONSUMER BUYING RATE

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

It is now even more crucial to understand how online product advertisements affect consumers’ purchasing decisions given the rising number of Nigerians who use the internet daily and the fact that many firms continue to use social media daily to sell their products. Internet marketing, internet marketing, and web marketing are additional terms for online advertising. Customers that employ this method of marketing and advertising receive promotional messages online. Due to its distinctive qualities of flexibility, interactivity, and personalisation, the internet is an ongoing rising source that tends to expand more and is increasing exponentially in both its application and user base.

Because it is more adaptable than traditional advertising methods, the internet is a powerful advertising medium. E-marketing is a very adaptable medium that enables customers to make modifications as needed throughout the campaign without incurring significant additional costs. Due to the very dynamic nature of the economic environment in countries like India, internet use is becoming increasingly vital. E-marketing encompasses email advertising, search engine advertising, social media advertising, display advertising, mobile advertising, etc. Like other forms of advertising, online marketing frequently involves both the publisher, who incorporates advertisements into online contents, and the advertiser, who provides the advertisement to be displayed on the publisher’s content in an effort to influence. Advertising is a key component of promotional strategies since it helps potential customers become aware of a product before making a final purchasing decision. Public relations, sales promotion, and advertising are all forms of mass communication that marketers might use. All forms of advertising affect audiences, but the internet is currently one of the most powerful because of its wide audience. It may affect a person’s attitude, behavior, lifestyle, exposure, and over time, even the culture of the entire nation (Latif and Abideen 2011).

Customers are the items’ ultimate users, and they keep the manufacturing process going. Any country will experience economic crisis if there is insufficient demand from consumers for the things that are produced. Customers are an essential part of any country’s economic system. Cohen (1988) defined advertising as a business activity that uses creative techniques to create persuasive communication in mass media that promotes ideas, goods, and services in a way consistent with the accomplishment of the advertiser’s objective, the delivery of consumer satisfaction, and the development of social and economic welfare. (Cohen, 1988). According to Cohen’s definition, advertising achieves three goals: it boosts business sales, assures customers of a wide range of services, and, ultimately, promotes the social and economic well-being of society.

1.2 Statement of the Problem

A paradigm shift has long been required in all fields due to the globalization era, including the field of marketing. Due to the intense competition in the business sector, organizations must be more innovative and have a competitive advantage over their rivals in order to succeed in the global market. The study of consumer behavior has become a source of concern for marketers as they may understand how customers choose the goods and services needed to satisfy a variety of demands, as well as the variables influencing their decision. Because online advertising has expanded significantly over the past ten years, businesses are now drawn to it for this purpose. People are spending an increasing amount of time online and connecting with one another. Other gadgets can offer more internet connectivity, like mobile phones and televisions.
According to Kotler (2007), a new form of competition now exists between what is added to the plant results in the form of packaging, services, advertising, customer consultation, financing, shipping arrangements, warehousing, and other items that people deem valuable rather than what different companies produce in a factory.

Manufacturers are prompted by the competition between products on the market to actively market their goods in order to catch consumers’ attention. As a result, businesses need to be able to present a favorable image of the product to the consumer and deal with how the product is marketed consistently. Consumers must be informed about the existence of these products in order for them to be introduced into existence in order for them to satisfy their requirements and desires. On the other side, Chukwu and Uzoma’s (2014) research offered scientific proof that Nigerian consumers make significant use of internet shops. One wonders what caused the observed modifications. Moreover, Husain and Adamu (2014) noted that while social media, particularly Facebook and Twitter, have been playing a significant role, it is unclear whether these platforms have actually boosted online behavior purchases weren’t mentioned specifically. Surprisingly, Ayo et al. (2011) claimed that despite the rapid expansion of online marketing, customers continue to exclusively use company websites as informational resources before making traditional purchases. Potential contributing elements for such behavior include risk and trust (security issues). This study aims to determine the effect of online shopping advertisements on customer purchase rate based on the assumption that the experiences of Nigerians in all of these have been only slightly studied.

1.3 Objective of the Study

This study’s main goal is to determine how internet shopping advertisements affect customer purchasing behavior. In particular, the study aims to:

1. Confirm that online advertising is significantly more effective than traditional media.
2. Examine additional aspects that may affect how individuals perceive online advertising.
3. Examine whether internet shopping advertisements will increase the number of a product’s sales.
4. Discover whether internet advertisements have influenced consumer goods purchases.

1.4 Research Hypothesis

HO1:  Internet advertising has not proven to be very effective than the traditional media

HO2: Online shopping adverts has no significant impact on  consumer buying rate

1.5 Significance of the Study

The study’s findings will help marketers and web designers better grasp the factors to take into account when creating online adverts. The study’s findings will show how online advertising affects consumers’ opinions of products, which is advantageous for businesses looking to use and invest in online or internet advertising. The study’s findings will offer empirical evidence that may be used to confirm or refute theories concerning Nigeria’s online advertising. The study’s findings will also add to the body of current literature and be used as a resource for students and academics who wish to pursue future research in a related area.

1.6 Scope of the Study

The goal of this study is to determine how internet shopping advertisements affect customer purchasing behavior. It was determined whether online advertising would outperform traditional media. It looked into how various elements affect how individuals perceive online advertising. And will look into whether internet shopping advertisements would increase goods sales volume. But, Jumia’s online store is excluded from the analysis.

1.7 Limitation of the Study

In conducting the study, the researchers ran into some minor obstacles, just as in every human endeavor. The researcher had to choose from a small number of sample sizes due to the significant constraint of the paucity of available literature on the topic, which resulted in higher costs and time requirements for the researcher to find the necessary materials, literature, or information and conduct the data collection. The researcher will also work on other scholarly projects while conducting this study. The researcher ensured that the best was provided while downplaying each despite the restriction.

1.8  Definition of Terms

Online shopping is a type of electronic commerce that lets customers purchase products or services directly from a vendor via the Internet using a web browser or a mobile app. Customers can typically utilize “search” options in online retailers to locate particular models, brands, or products.

Online Advert: Online advertising, often referred to as online marketing, Internet advertising, digital advertising, or web advertising, is a type of marketing and advertising that makes use of the Internet to send customers advertising messages.

Consumer buying behavior is the term used to describe the actions people take before making a purchase of a good or service, both online and offline.

Sales Volume: The quantity of units sold within a reporting period is referred to as sales volume. Investors track this number to see whether a company is growing or shrinking. Sales volume can be tracked inside an organization at the level of the product, product line, client, subsidiary, or sales region.

REFERENCES

Shegun, C., Ayo, C., and Shola, M. (2011). African Journal of Business Management, Vol. 5, p. 109–117, “Business of Consumer E-Commerce in Nigeria: Opportunities and Challenges”

Uzoma I. C. and Chukwu B. I. (2014). Study of Konga and Jumia’s Social Media Networks’ Effects on Customer Patronage in Nigeria European Journal of Business & Management, Vol. 6, No. 30, Nigerian

R. Husain and A. Adamu (2014). Sholarly Journal of Mathematics and Computer Science, Vol. 3 No. 1, The Influence of Social Media in Virtual Marketing in Nigeria

Kotler, P. (2007). Analysis, planning, implementation, and control are all part of marketing strategy and management. 8th ed. NJ: Prentice Hall International, Inc., Englewood Cliffs

Shark, V., Clark, S., Lu, Y. (2011). An investigation on the variables that influence users’ behavioral intentions to switch from offline to online usage. machines in

S. Magdalen and M. Rettie (2013). Journal of Academic: “Attitude to Internet Advertising: Cross-Cultural Comparison