THE EFFECTS OF INTERNET ADVERTISING ON ...

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behavior of internet advertisements (materialism, hedonism, product information, ... In graphic 1 the social media is in the first line among the aims internet using.
THE EFFECTS OF INTERNET ADVERTISING ON THE BEHAVIORS AND ATTITUDES OF CONSUMERS Metin AKBULUT1 Prof.Dr.Şuaip Özdemir2 Prof.Dr.Cemal OKUYAN3

ABSTRACT As consumption habits change nowadays, consumers prefer to buy their needs on the net increasingly. The aim of this study is to define the attitudes and believes of participants towards internet advertising. For this purpose the Likert Scale which consists of 30 items and used in Yang's research (2003) is grounded on. Questionnaire is used as data collecting technique in the research and made with 185 people. People in the questionnaire are selected according to the convenience sampling method. The results of the research prove that there are 9 defining belief factors on the behavior of internet advertisements (materialism, hedonism, product information, and consumer advantage, and value degeneration, contribution to the economy, negative features, web economy and affect of advertisement as the contribution of this study) Keywords: Internet, internet advertising, consumers’ attitudes, consumers’ beliefs, social media.

1

Bandırma 17 Eylül University, Turkey,[email protected], Tel:+9 0 266 614 12 00 Afyon Kocatepe University.Turkey,[email protected]. Tel:+90 0272 228 12 92 3 Balıkesir University.Turkey,[email protected]. Tel:+90 266 614 12 00 2

1.

INTRODUCTION

As the web sites increase, verify and start to create meaning full traffic themselves, the opportunity to use this traffic has occurred not only for their own advertisement but also for the other websites and product. Especially the web sites with high traffic have started more serious structuring about marketing (Ozmen, 2009). According to the international supervision consultation company Consumer on board %62 of World internet users %69 of Turkish internet users do shopping online (http://ekonomi. haberturk.com/, Access date,26.03.2015). So the online shoppers’ behavior is a complicated fact that comes true under many personal, Social and psychological affects. The better this fact is known, the companies have a higher chance to be successful in the market (Okumus, 2013:6).

Grafik 1: Source: Turkish Statistical Institute (2014)

In graphic 1 the social media is in the first line among the aims internet using. When internet using aims are considered %78.8 of internet users visit social media sites, %74.2 of them visit the news, newspaper or magazines sites, %67.2 get information about products and services, %58.7 download play games, music, film or views,%53.9 send or receive emails . The ordering or buying rate of internet user with personal aim is %30.8. The rate of internet people do shopping online is %24.1 in the previous year. The %51.9 of people that did shopping between April 2013- March 2014 bought clothing and sport materials , %27 furniture(toys, white goods), %26.8 travel ticket, renting cars etc, %24.9 electronic devices(mobile phone, camera, radio, TV , DVD player etc.), %15.9 books, magazines, newspapers(including eBooks).

2.

INTERNET ADVERTISEMENT

Nowadays the advertisement on the internet is increasing corresponding to developing technology and many companies are using internet advertisement intensively in order to reach the costumers in the target market. Today internet has become one of the important areas where advertisement facilities are carried out as part of promotion activities. In beginning the successes of the first studies with small marketing budgets have become attractive .Today it is inevitable to work on internet advertising for the companies that want to exist in a new market like internet (Hokkaci, 2005:2). The advertisements that exist in online marketing such as sound, video, animation etc. technologies are called internet advertisements (Sari and Ozen, 2008:15).

Internet is preferred by advertising company as it is easy to reach the costumers faster, it integrates the target group into the advertisement interactively and it is easy to assess the reaction easier recently; it is also one of the most important application areas of advertiser (Guney, 2005:133). Internet advertisements can shortly be defined as doing advertisement activities on internet.

3.

THE DEVELOPMENT OF ADVERTISEMENT

The internet that millions of people communicate has founded the online advertisement by means of announcements in the web in order to give trade messages, introduce some companies and their products (Sahin, 2006:121). By using advertisement on internet companies have the opportunity to reach a mass range of customers with very little advertisement budget (Kircova, 2008:221). Today as the newspaper and TV, which are very important advertisement devices, have moved on internet area; they begin lose their attraction and verification as advertisement areas; growth of the time spent on the internet increases the importance of internet advertisement. When internet started to get used in 80s, the main aim wasn't to use it as an advertisement tool. (deniz2010:260). But marketing on the internet has become more than expected. It was first advertised on internet by hotwired.com in 1994. In the beginning usually technologic devices were advertised. Because the people who met these advertisements were people who already knew technology. But with the increase in the number of new media users and the change of the profile of users, the product categories of the new media have varied as well. Today, different products and trades use the new media as advertisement area. (Babur Tosun, 2009:38) The first advertisement type on the internet is banner and a wide range of advertisement has occurred in time. There are two basic affects in the development of internet advertisement. The first one is to use the e-mails as advertisement device; the second one is to use the other websites as introduction devices rather than marketing and selling channel. (Kircova, 2008, 212) Web pages have become an alternative to the traditional advertisement media, and the announcement and introduction of the products in this area has become to be a necessity. (Mucuk, 2010:259) Today, companies use the traditional advertisement and internet advertisement together and there is more orientation to the internet advertisement for many companies. According to the report that IAB has published internet advertisement gets a larger part from the cake of the advertisement market. According to IAB Turkish Digital advertisement expenses adex2014-6 Report: Turkish digital advertisement market is keeping growth, even though it is slow. According to the advertisement expenses January-June results of Adex-tr that is regularly published in Turkey, digital advertisement investments has grown %20.1 compared to the same period of the previous year. The total vast of the market has exceeded 650 million liras. The same amount was 542 million for the first half of 2013. According to IAB Turkey, the biggest part in digital advertisement Sector belongs to the search engines with 335 million liras investment. Compared to the same period of 2013 the fastest growing category in search engine adv expenses with 25.4 increases is video advertisement. Search engine adv net investments, which has increased % 27.3 compared to the

previous year, has reached to 114 million liras. The expenses of paid gradation that is the second sub category, has reached to 221 million liras with an increase of %24.5.

4.

LITERATURE REVIEW

Caliskusu in his work (2009) surveyed comparison of internet advertisement varieties from the point of consumer attitudes, He has pointed out those consumers’ attitudes towards internet advertisement and their attitudes’ direction density amount and quality is very important. Isaac M. Dinner in his study (2011) “Driving Online and Offline Sales: The Cross-Channel Effects of Digital Versus Traditional Advertising” we develop a Dynamic Linear Model (DLM) to measure these effects. The model addresses: (1) the endogeneity of advertising, (2) dynamic advertising effects, (3) a multivariate dependent variable (4) heterogeneity across markets, and (5) competitive advertising effects. Despite online display and traditional advertising being of a similar nature, i.e. Focused on impression –based awareness, it is possible that or retailer’s display advertising is better targeted than the traditional advertising. Sheng-Hsien Lee in his study (2009) “How do online reviews affect purchasing intention?”His study adopts the Elaboration Likelihood Model (ELM) to explore the effects of online reviews Christopher Chan in his study (2011) says the campaign statistics showed that the advertisement was shown frequently to the target user group, and that the click through rate for the advertisement was high. Furthermore, the advertisement accounted for over half of the new connections made to the library’s Facebook page during the campaign period. Altındal (2013) in new economy social media effects which is the fastest and the closest interaction devices are studied. Consumers’ point of view to internet advertisements, the affects of internet and internet advertisements on the consumers’ buying process and previous studies are surveyed (Kocoglu, 2014). The history and development of internet advertisement is informed and measurement methods are explained. Also Google Adwords advertisement platform which gives the most concrete results amount the existing systems is introduced (Karaca, 2009). Advertisement and fact of consumers attitudes are surveyed, and the affect of advertisement on buying behaviors’ of consumers with different demographic qualifications are tried to be measured (Tasyurek, 2010) E.Goldsmith in his study (2002) the purpose of the present study is to test for hypotheses regarding the effects of viewing web sites on Internet advertising. Lori D. Wolin and others in their study (2002) the meaningfully positive attitudes of males and females towards Web advertising are researched on several dimensions. Manchanda and others in their study (2006) focus on whether banner advertising affects purchasing patterns on the Internet. Using a behavioral database that consists of customer purchases at a Web site along with individual advertising exposure, the authors measure the impact of banner advertising on current customers’ probabilities of repurchase, while accounting for duration dependence. Viral marketing or word of mouth marketing on internet defines the strategy that people tell marketing messages to other people so it is pointed out important potentials in expansion of the messages (Argan, 2006) Ucar (2013) has based on 38-item Likert scale which is used in Yang research. The consumers attitudes in the different times are surveyed with a respond system which is called “Testing effect” (Lohse and other, 2000)

Matthew K.O. and others (2011) explored how positive messages in online discussion forums may affect consumers’ decisions to shop online. It is pointed out various factors and varieties on attitudes in this study above. In this study the scale Yang (2003) has used in his survey is used. In this regard the affect of materialism, hedonism, product information, and consumer advantage, and value degeneration, contribution to the economy, negative features, web economy and demographic characteristic is surveyed.

5.

THE AIM OF THE WORK

The aim of this work is to suggest the attitude and behaviors of the participants to the internet advertisement. In accordance with this purpose, the questions below are asked:   

What kind of a relationship is there between the participants' demographic qualities and their attitudes to the internet advertisement? Is there a difference to the attitudes towards internet advertisement according to the kind of internet advertisement? What are the believes and belief factors behind the participants' attitudes towards internet advertisement?

Which belief factors are determinant on participants' attitudes towards internet advertisement?

6.

METHOD

Questionnaire is used as the method of gathering data. In the first part of the questionnaire demographic data (gender, age, education), in the second part internet using time and aim are gathered. In the last part the scale in the Yang's work is used in order to determine the attitude and believes for internet advertisement. The scaled used is 5 Likert Type scale (1- Totally disagree 5-Totally agree) Heterogeneity is watched out in the participants' work conditions-working, student. 7.

FINDINGS AND COMMENT

It is evaluated below what kind of a relation there is between the participants' demographic qualifications and their attitude to internet advertisement. 185 people participated, 150 questionnaires is valid. %43.3 (65 people) are female, % 56.7 (85) are male. age range is %24.0 (36 people) for 18-24 age range, %15,3 (23 people) for 25-29, %46,7 (70 people) for 30-44. This is % 86 of the research from the perspective of education, %23.3 (35 people) of the participants have secondary school degree, %76.7 (115 people) have university degree. These two groups form the %100 of the sample. (Table 1)

Sex/Gender Frequency Sex Age range

Education degree

Female

65

43,3

Gender

85

56,7

18-24

36

24,0

25-29

23

15,3

30-44

70

46,7

45 and above

21

14,0

8

5,3

27

18,0

115

76,7

Single

65

43,3

Married

85

56,7

1000 TL below

37

24,7

1000 TL-2000 TL

28

18,7

2000 TL-3000 TL

44

29,3

3000 TL ve above

41

27,3

150

100,0

Secondary School High school University

Marital Status Monthly Revenue

Percentage

Total Table 1: Demographic results

Factor analysis is applied to belief and attitude articles to reduce the number of variables and categories them KMO test is applied to test the conformity of the dataset the factor analyses and the KMO number of the questionnaire is 0.806. Above 0.80 KMO is valued as “very good” .The dataset of the work is suitable to make factor analyses. Factors Materialism Hedonism Product information Consumer utility Value degeneration Value degeneration Contribution to economy Web economy

Cronbach Alppha 0.825 0.840***** 0.602 0.535 0.804 0.701 0.547 0.526

Table 2

In table 2 Cronbach Alppha value is calculated for each factor; the factors are determined calculated, except for Hedonism. %26 of the participants are determined to use internet to play games, %70 to read magazines newspaper or article ,%70 to use social media. Chi-Square tests are applied with age online shopping, accessing newspaper, magazines, article social media websites .There is no difference between the numbers of teacher appointed in the first appointment turn because p values in chi- square table are smaller than 0.05. Because Pearson Chisquare analysis is 0.313>0.05 between age online shopping there is no meaningful relationship. When the Pearson Chi-square analysis is 0.132>0.05 between age and newspaper, magazine, article there is no meaningful relationship. There is meaningful relationship between age range and social sharing’s

according to Pearson Chi-Square analysis 0.030.05. Internet users between 1-3 hours use social web sites intensively, with %46 range. %50 of participants does online shopping once in a month. %60 of them does online shopping once and more than once. %29 of them doesn’t do online shopping yet. How often do you do online shopping? Frequency Valid

Once a week A few times a week Once times a week Once in a months Have never done Four five times in a year of less Total

7 6 12 75 44 6 150

Percent Valid Percent 4,7 4,7 4,0 4,0 8,0 8,0 50,0 50,0 29,3 29,3 4,0 4,0 100,0

Cumulative Percent 4,7 8,7 16,7 66,7 96,0 100,0

100,0

Table 3

The difference between attitudes towards internet advertisement according to type of internet advertisement is assessed below. %20 of the participants who do online shopping once in a month are influenced by social media advertisement, %15 of them by e-mail advertisement, and %35 of them by others (Table 4). What is the advertisement you are influenced when you decide to buy a product? Frequency Valid

Percent

Valid Percent

Cumulative Percent

Facebook advertisement

24

16,0

16,0

16,0

YouTube advertisement

6

4,0

4,0

20,0

Google Sponsor advertisement

19

12,7

12,7

32,7

E-mail advertisiment

18

12,0

12,0

44,7

Other internet advirtisiment

48

32,0

32,0

76,7

I am not influenced

35

23,3

23,3

100,0

150

100,0

100,0

Total Table 4

The scale used in this study is 5 likert scale. The scale used in this study is this scale with bas on Pally and Mittal’s study(1993) and used by Yang (2003).There are 30 item statements prepared with 5 Likert Scale to determine the believes and attitudes of the participants about internet advertisement. Advertisement affect altitude is added to this study in materialism, hedonism, product information , consumer utility, value degeneration, contribution to economy, negative specification , web economy scales (Table5).

Statements

N

1. Factor: Materialism

Avg.

Std. Deviation

3,20

,96572

M1-People buy many things they don’t need , because of internet advertisement

150

3,37

1,32

M2-Internet advertisement persuade people to buy things they shouldn’t .

150

3,11

1,24

M3-Internet advertisement stimulates people to buy things to impress other 150 people. M4-Internet advertisement stimulates societies to become materialist societies 150

3,30

1,22

3,25

1,23

150

2,97

1,29

2,89

1,01277

M5-Internet advertisement cause people to live in an imaginary world 9.Factor:Advertisiment Affect B1-Internet advertisement interests me

150

3,05

1,24

B2-I recommend internet advertisement

150

2,84

1,30

B3-Internet advertisement make me buy different products

150

2,86

1,33

B4-The first page result are enough for me in my internet researches

150

2,79

1,32

Table 5

Table 6

The variance of these factors in all data is %66.416. As the eigenvalue increases, the variance that factor explains increases too. After the factor analyses applied to attitude items the factor is defined of which eigenvalue statistic is bigger than one. In the sample the factors with eigenvalue bigger than one is defined as meaningful. There are 7 factors .The first factor explains % 16.384 of the total variance. It explains %37.839 of the total variance with first, second and third factors. After H1, H2, O2 items are separated Cronbach’s Alpha is determined 0.868. The third research question of the study is that which belief factors are determining on the attitudes towards internet advertisement. When functional shapes of relationship between the variables are considered, regression analyses are used. If there are more than one independent variables in the regression used, multi regression model is used.

S10-What sis advertisement you are inspired when you can decide to buy something. Materialism Average

N

Mean Rank

Social Media advertisement

30

72,85

Google Sponsor advertisement

19

71,66

E-mail advertisement

18

78,25

Other internet advertisement

48

83,10

I am not influenced

35

68,01

Tot

150

Table 7:Kruskal-Wals Test-Materialism and Decision affect.

The values to be considered are Chi-Square value and Asymp.Sig(p) values in Test statistic table . If it is p0.05, there is not a meaningful difference. When the table is reviewed there is no meaningful difference between the groups materialistic attitude and internet advertisement [X2(2) =2.855; p=0.582;p>0.05]. Age Range Materialism Average

N

Mean Rank

18-24

36

68,42

25-29

23

61,70

30-44

70

81,65

45 and above

21

82,26

Table 2

There is no meaningful difference between the materialistic attitudes and ages of the groups. [X (2)=5.215;p=0.157;p>0.05]. 2

In “the effects of internet advertising on the behaviors and attitudes of consumers” research hypothesis the hypothesis is refused because in factor 9: Advertisement affect sig. 0.00>0.05. It is defined that internet advertisement aren’t affective kind of advertisement in our decisions.

8.

CONCLUSION AND SUGGESTIONS

The results of study prove that belief factors are much more affective and defining then demographic variables. It is important from the point of the success of internet advertisements to the determine how internet user sense the internet advertisements and which factors affect their attitudes towards internet advertisement in internet area that is growing day by day. Because people who can be persuaded by advertisement, are the ones that have positive attitudes towards advertisement. The basic restriction of this study is that research data cannot be generalized because convenience sampling method is used. All kind of restrictions that mention people in social sciences are valid this study as in all social studies.

This study should be repeated with a more representative and homogeneous sample in the future studies .Also researches should be done to determine the attitudes which aren’t define as missing (Banner, Pop Up, Floating Banner, Rollover Banner, Showcase Banner etc..) In an area that consist of social media in internet technologies where daily internet using is increasing; the consumers aren’t only users, but they also become a part of media. It is considered that advertisements van be affective as long as the advertisement devices are developed with techniques that won’t disturb users.

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