Impact of Advertising on Consumer Behaviour in E-Commerce Market

The study examines the impact of advertising on consumer behavior in ecommerce. Findings reveal that advertising has a negative impact on sales of e-commerce in Europe. Companies and marketers investing in online advertising are useful because they have better conversions and use online advertising opportunities to maximize sales of their products and services.

Impact of Advertising on the Consumer Behaviour in the E-Commerce Market
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Executive Summary
The impetus of the research is to examine the impact of advertising on consumer behavior in e-
commerce. The study has been conducted using several e-commerce companies advertisement
strategies and by analyzing their impact on consumer behavior. Consumer behavior for
traditional advertisement can be as a seen of the communication medium. advertisement has
capability to create feelings to meet needs and demands of end customers. Advertisements are
undertaken in such a manner that it can have an influence on external as well as internal
variables. However, such impacts of advertisements for e-commerce businesses had not been
studied extensively. Therefore, there remains a gap that this study can aim at filling in. Findings
reveal that advertising has a negative impact on sales of e-commerce in Europe. This variable is
justified by the literature. The results also show that ad-based e-commerce portals have a strong
positive relationship and a positive impact on e-commerce sales. Companies and marketers
investing in online advertising are useful because they have better conversions and use online
advertising opportunities to maximize sales of their products and services.
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Table of Contents
Impact of Advertising on the Consumer Behaviour in the E-Commerce Market...........................1
Executive Summary.........................................................................................................................2
1.0 Introduction................................................................................................................................3
1.1 Background of the Study........................................................................................................4
1.2 Research Aim and Objective..................................................................................................5
1.3 Research Questions................................................................................................................5
1.4 Project Scope..........................................................................................................................6
2.0 Literature Review......................................................................................................................7
2.1 Advertising.............................................................................................................................7
2.2 Difference between online/offline Stores..............................................................................8
2.3 Impact of the Internet on Consumer Behavior.......................................................................9
3.0 Research Methodology............................................................................................................12
4.0 Findings and Analysis..............................................................................................................14
5.0 Conclusion and Recommendations..........................................................................................19
6.0 Reference Lists........................................................................................................................21
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Task 2
1.0 Introduction
The Internet has been developing rapidly for the last two decades (Hennig-Thurau, Malthouse,
Friege, Gensler, Lobschat, Rangaswamy & Skiera, 2010). Digital information technology has
also been developed around the world. The users of the new technologies are too developed. E-
commerce companies make use of web development that can lead companies to promotion and
improvement. Photos of products and services over the internet provide extensive promotions.
Therefore, the behavior of consumer products is diverted from the traditional way to greater
confidence in purchases over the Internet. Transformation is an inevitable trend that changes the
marketing strategy. With the increasing number of e-commerce companies advertising and
selling their products online, it becomes integral to analyze the impact that they generate on
customers (Davis & Khazanchi, 2008). The scope of this study identifies the impact that
advertisement has on e-commerce on consumer behavior in the e-commerce market.
1.1 Background of the Study
Recent studies have shown that the advertisement works extensively in the e-commerce industry.
Buyers (B2C) have increased and online purchases are becoming more popular for many people.
The many factors and the rapid development of online shopping add up mainly because of the
advantages that the internet offers (Laudon & Traver, 2013). First, the Internet offers various
amenities for consumers. As consumers do not have to go anywhere else for making their
purchases. Finding information about products from the internet can help arrive at a decision
easily. Websites and also helps to check between websites to get the cheapest price. In addition,
the internet tool needs a clean product. And more effective than other channels to meet consumer
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needs. Due to several Search Engines save consumers time in accessing consumer information,
consumers mainly prefer making online purchases. Advertisement information has a mix of
pictures, sounds and detailed descriptions of text in it helps to learn from consumers and choose
the most appropriate product (Liang & Turban, 2011). Consumer behavior is triggered with the
help of advertisements as marketers designs advertisements which can influence consumer
behavior to generate demands. The online advertisement has increasing impacts as more and
more consumers flock online for meeting their social and personal needs.
1.2 Research Aim and Objective
The scope of the study was aimed at arriving at the aim which is to; Understand the impact of
advertising on consumer behavior in the e-commerce market.
In order to attain the above-stated aim to the study, the following objectives to the study need to
be met in an appropriate manner.
 Research Objective 1: To analyze the impact of advertising on consumer behavior Research Objective 2: To explore consumer decision-making process in an e-commerce
market
 Research Objective 3: To understand the impact of advertisement on the e-commerce
market
1.3 Research Questions
In order to attain the above-stated research objectives, the following research questions need to
be appropriately answered.
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 Research Question 1: What is the impact of advertising on consumer behavior?
 Research Question 2: How is the consumer decision-making process affected in an e-
commerce market?
 Research Question 3: What is the impact of advertisement in the e-commerce market?
1.4 Project Scope
The scope of the project will include studying the impact of advertising on influencing consumer
behavior. Then the study will go on to explore and apply such influences effectiveness in the e-
commerce market (Ngai, Xiu & Chau, 2009). As marketers and advertisers analyze ways such
that they can make a maximum influence on consumer behavior it becomes integral how such
influences work in the e-commerce market.
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Task 3
2.0 Literature Review
In order to conduct this study, it becomes integral to analyze several literary journals, books, and
articles which can provide information related to consumer behavior and influences which
advertisement can make in consumer behavior. In the current scope of literature analysis, several
books and journals have been taken into consideration, which can reveal various concepts related
to influences to the consumer through advertisements.
2.1 Advertising
Advertising is defined as "any paid form of non-personal communication of ideas and product
information in the media to create a brand image. Promotion in television and in the main press
source for advertising, but in today's world, internet marketing has become another Internet is a
powerful force in many promotional initiatives and efforts (Hernández, Jiménez & Martín,
2010). They absolutely need it accurately estimates of online shopping behavior "In the internet
environment, consumers do not have to adapt to the expectations of others when they buy a
presence on the Internet and everyone must make good decisions. Internet advertising is an
important tool for marketing products and services from industrial and non-industrial
organizations. Other study and ad advertisement
Dennis, Merrilees, Jayawardhena and Tiu Wright (2009) states that the total online advertising
costs in the world are estimated at around $ 66.6 billion. These are companies that want to
improve their online business. They are looking for accurate measurements and estimates.
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Strategic businesses for online retail growth need relative estimates for the growth of Internet
shopping. Without a doubt, he has been seen in the Internet advertising industry. This is the view
of another platform. In general, it should be noted that companies provide a significant amount
of advertising on the Internet. Internet advertising statistics cover domains related to Internet
advertising brands and include advertising, advertising services, PPC search engine advertising
and other Internet advertising related development and statistics. According to, Internet
advertising revenue increased by 38% between 2000 and 2008. Internet advertising is effective if
it has the talent to produce an immediate copy of customers. Multimedia features, images, and
content features are used primarily in Internet advertising.
2.2 Difference between online/offline Stores
Internet commerce is developing actively, especially in the consumer goods market industry, but
there is still a big difference between traditional and Internet users stores. Hausman and Siekpe
(2009) provide that there may be different reasons more importantly; the benefits are visible in
both traditional and online markets. Both have certain characteristics. The traditional seller can
do this, for example, it offers convenience for parking and shopping so that guests can read and
read before buying, checking the quality of products and services are more direct to customers.
However, traditional companies have a limited number of products and sales costs are higher
than in the online store. By comparison, one can find limitations On the other hand; traditional
stores are more likely than the benefits of online stores. Discounts of an online store also seem to
be an advantage to traditional stores. It is a clear review of products in many e-commerce
companies offers great development of technology and competitive benefit from online sales.
The impact of online shopping for consumers behavior to find all the analysis frameworks they
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display an important part of marketing and business to meet the needs of consumers and
consumers.
2.3 Impact of the Internet on Consumer Behavior
The impact on consumer behavior often is achieved between the external and internal factors that
are present. The external factors are found in the society and internal factors are usually in the
opinion of consumers. Trusov, Bucklin, and Pauwels (2009) state that there are many factors that
can affect Consumers' behavior. Warner said that external influences might be involved in five
areas: population, social economy, technology, and public order; culture; subculture; the control
group; and marketing. There are many internal effects psychological processes, including
attitudes, learning, understanding, motivation, self-Picture, and Seminar. Consumers have two
reasons why shopping is practical and those do not work. Practical factors are usually time;
company and the needs of buyers can buy can save time Surround shopping centers such as free
parking spaces, smaller commodities, and services amongst which a consumer can choose from
many products. Brand identities are cultural or social values. The traditional business is just
getting the customer's needs, as its behavior seems to be an attractive service provider that sells
and promotes its products. Customers go there and buy products and then new products took
home and used. Internet shopping and traditional shopping are much the same except for time
being different for them as buying online provides comfort and interactive services. Varnali and
Toker (2010) state that traditional shopping can offer customers a cheaper shopping environment
and high-quality products. Both sides of shopping experiences try to improve services by
learning others, such as Traditional shopping centers offer more parking spaces, more counters
and close proximity the residence improves comfort. Internet shopping experiences provide
virtual reality and 3D technology to improve the presentation of products. A brief description of
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the Consumer Decision Making Process along with the several influencing factors that impact
their decision making given in the figures below.
Figure 1: Consumer Decision Making Process
Source: Author
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1
Need
Recognition
2
Search for
Information
3
Evaluation
of
Alternatives
4
Purchase
Decision
5
Post-
Purchase
Evaluation

Figure 2: Influences in Consumer Decision Making Process
The following sections describe the nature of Internet purchases first, an e-commerce site has
been introduced to understand the essence of Internet shopping, online security, and privacy and
trust are handled. Zhu and Zhang (2010) state that all general reviews and discussions about
online stores are available as studying the background and helping to build the foundation of
academic research. The internet offers great convenience to consumers as the main reason for
getting it most researchers and analyzing customer acceptance of the e-commerce companies. On
the Internet, buyers can buy online anywhere and anytime. This means that consumers can shop
online and buy around the clock for seven days a week at home or in the office, which attracts
time to hungry Internet buyers save time by searching products in stock. In addition, the internet
offers a few good ways to save money and time. For example, consumers do not have to go out
retail and no shipping costs. E-commerce offer they are more fun than traditional shopping.
Access to the Internet is largely linked to technology development and plays an important role in
online shopping. Previously organizations have for decades admitted that new technologies can
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affect the Internet strengthen deep and huge technology as a virtual reality and 3D technology
has agreed to bring a high competitive advantage. IT uses better quality on the Internet Product
information that helps customers make the decision. On a wide range of Internet usage studies,
Internet growth and Growth online has grown significantly over the last decade. On BMRB
International (2004) and WWW 9 User Surveys (1998), publication US Internet users grew to
22.7 million, including 48.4% the adult population and about 53% of netizens reported that the
purchase was one Basic use of the Internet (Cui, Lui & Guo, 2012).
3.0 Research Technique
Determination of suitable research methods is the most important research methods. At this
moment one has to discuss the research methodology (Smith, 2015). More information about the
goals and challenges of the studies. Positivism and interpretation are the two most important
research methods that can be used in such business research. The positivism is undertaken in
quantitative scientific methods, while applied research makes use of qualitative interpretation
methods. The scope of the research can be given through qualitative methods. That is why one
can describe the impact that advertisement has on e-commerce users in a descriptive way. The
researcher collected qualitative data and interpreted the results in an interpretative way.
The research method offers many basic aspects of research (Taylor, Bogdan & DeVault, 2015).
Visualization and analysis of research data can be done using qualitative or quantitative methods.
Quantitative data refer to mathematical and statistical data, and qualitative data consist of
subjective data. One chooses exemplary quality when analyzing descriptive data for various
communication tasks. Qualitative data can be analyzed using inductive or deductive methods
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using the best inductive method. In general, quantitative data use a deductive method. Research
has long developed a theory of generalization and linking of research goals.
The focus of the study was on secondary qualitative data (Bryman & Bell, 2015). The study
ignored all primary data, which means that information from the first results lacks time and
money. The study mainly collected data from secondary sources to understand the impact of
advertising on consumer behavior. With the increasing of e-commerce businesses, marketers are
increasingly making use of advertisement in order to enhance their marketability of products
(Sekaran & Bougie, 2016). In order to collect data relative to the study, the scholar has collected
several advertisement efforts that are undertaken by companies such as Amazon, eBay in order
to arrive at conclusion related to the study. There are many search tools for collecting research
data. The study uses secondary data collected from the results of the technology industry. The
collected data are analyzed and interpreted in a descriptive way to achieve the results of the
research. The study followed all ethical principles in accordance with university standards.
Project Criteria
Timeline
0-15
days
15-40
days
40-75
days
75-90
days
90-110
days
110-
130
days
130-145
days
Proposal
Introduction
Literature
Analysis
Data Collection
Data Analysis
Findings
Recommendation
s
Figure 3: Gantt Chart for the Study
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Task 4
4.0 Findings and Analysis
Analysis of secondary data and connecting them to literary journals have provided various
findings related to the study. As e-commerce businesses occupy a large segment of businesses
undertaken in the present scenario, the impact of advertisement on adding to the various
consumer influences has been depicted which includes environmental influences such as
technology, individual, social and marketers influences that makes consumers undertake
decision-related to making their product choices.
Some of the findings related to the study are highlighted below;
o Findings 1-Marketers Influence: Online advertisers use e-commerce (EC) to develop a
marketing strategy to create a client. Online ads also include ads containing content that
contain content banner ads, multimedia ads, social networks advertising, online
advertising and email marketing like spam. Online ads offer communication
opportunities for growth in buying behavior and product improvement (Kassim & Asiah
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Abdullah, 2010). In addition, marketing of online marketing factors is such Security,
integrity and consumer care is important it affects buyers' purchases. However,
consumers can deal with the specialist who sells the products that cannot move or feel.
Consumers are also reluctant to base their purchases solely on advertisers data because
some data cannot be reliable.
o Findings 2- Benefits of Traditional v/s online marketing: Traditional marketing theory
is still very important it refers to the concept of customer confidence how to enhance the
high-quality product the opportunistic behavior of the seller. Therefore, the buyer
identifying trust in behavior and behavior. There are many online types available
advertising, which appears at the time of e-commerce shopping. First, liquid advertising
is high-income Media is online advertising that does not disappear at the request of the
user and be careful. The floating ads are shown in only displayed on a website, screen, or
screen smaller rectangular windows. One may or may not mean flying near the button.
There are many variants of its fineness and shape or size, audio, animation, and
interactive parts. More Enlargements not only means expanding ads some people are
using blinking hyperlinks, other advertisers. They often spend the bill for a long time.
Current ad formats are designed encouraging advertisers to provide greater file formats
without the estimated time of interruption of the remaining photographs. The good ad
format is loaded in two steps. Second, the most important tax is the full version of the ad.
It is better to close the display in which a larger file size exists. In addition, an expanding
banner that tests let people often simulate the operation Messaging system. In addition,
pop-up ads are ads this will appear in the new browser window. No standard for all pop-
up ads. (Lowry, Vance, Moody, Beckman & Read, 2008). Pop-up windows are just one
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form Advertisers use online ads for web users Attention. Pop-up windows are just a part
of the plugin the universe's methods for accessing online customers. That’s right a popup
opens when opening a new window Current version, shows online ad or size Website in
the online market. Popup window unless the window has been downloaded or uploaded
the current window, so the user cannot see it until it closes more active windows. It is
called Pop-Under. Pop-ice another form of online advertising is on the Internet which
came from the concept of a pop-up window. Ads are usually advertisers, publishers, and
for users, because they are unlikely to take care of it instantly remove the user from the
publisher place. Advertisers are a great way to share the brand the product and the users
get enough product information.
o Findings 3- Environmental-Technological Influence: Online advertising gives market
parties new opportunities for buyers to buy. This affects the stimulus. Online databases
the advertising model in the market sector is enormously beneficial for e-commerce
businesses. Researchers are discovering online Ads affect comfort and cost savings. The
factor can customize products and services. Link identified the success of online
development a company that has a meaningful shopping experience on the mission.
Attention Emotional aspect of online advertising (Kim & Park, 2013). The purchase has
been taken into account. The product is or the task is done, is not enough then they
represent the interests of customers in the market. The sole aim of online marketing of e-
commerce businesses is their wanting to encourage the client. One's behavior and their
emotional satisfaction. Purchasing Process although some revisions are directed.
Common sense and purchasing power online advertising methods. Overall, this statement
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is relevant to consumers globally are behavioral positively contribute to online
advertising requests
Online advertising is essential as a mission, rational, decision-making, orientation, and effective
goals. Example of the process includes customer motivation driven by cost. Customization of
benefits of Business Process in e-commerce is tremendous. The effect of the sensor on the
motivation of the customer's perception Stories like happiness, fantasy, awakening, sensuality
and Enjoy marketing around the world, provides attractive benefits (Kim & Lennon, 2008). On
the other side, users like to shop online because they like that and do not try to achieve a
complete physical goal online advertising mission. This shows the motivation of the customer.
Advertising is a family characteristic for the online family. Purchasing behavior of customers,
for example in a commercial approach includes perceived risk, willingness to buy and self-
confidence. 1
o Findings 4-Individual /Psychological Influence: Identified the relationship between
perceived risks and the behavior of customers towards innovation in society. Behavior
and brand loyalty and online advertising. The implementation of the explained the
behavior of the consumer. They see it as an attempt to take risks for the product of online
advertising. Since then researchers said that the risks are domestic shopping is much
more than the risks associated with the business. Many have discovered a competitive
advantage of consumer behavior is that it is integrated with the concept of risk, as for the
subjective expectation of loss. That's how one recognizes the risk. It has been claimed
that many drugs, imposes as financial risk, Performance risk, psychological risk, physical
risk, social risk, and temporal risk.
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A willingness to buy the are inversely related to the amount of perceived risk and customer
satisfaction, intention, gifts and ways to please customers. Products to increase online advertising
need to understand consumer demands and needs. Of course, loyalty buyers must be physically
dynamic and creates motivation. Increasing the benefits of online advertising in the market are
immense. Ability to participate in the navigation and compile information without real purchase
intention is present in e-commerce businesses. However, the consumer meets the quality
requirements, there is an opportunity to express happiness in marketing and self-confidence.
Trust was defined as the choice of the brand. It explains the purchasing behavior of consumers in
an explanatory way. The confusion stems from the interests of consumers and consumers direct
impact on the compression of the implementation. Online advertising in the life cycle for any e-
commerce business which provides self-confidence, reduces anxiety and risk reduction
marketing strategies are very critical and deliberate variable. Researchers influence online
advertising. For example, it goes without saying and is contextual. Online advertising shop is
balanced with the purchase and perceived risks.
o Findings 5 Social/ Consumer Motivation: Online Advertising Motivations and
Consumer Purchasing Behavior seem to be connected. It is connected to the idea of
future concentration elements such as joy, senses, aesthetics, and emotions. There has
been made from the point of view of online commercial advertising to improve marketing
imagination by importing customers increase cost savings and shape the product from
around the world (Kim, Mattila & Baloglu, 2011). Online advertising must be done for
products Customer Performance and Classification Customer Satisfaction and High
Credibility. Moreover, customer behavior identifies it as objective, review the behavior of
different companies and then finally makes product related choices. Consumers need to
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have an important supply plan his thoughts Information to help manage shopping
consumed. On the other hand, consumers focus on the desire there is no meaningful mind
plan How to easily get to the market or introduce ad. The concentration of customer
behavior Advertising is like physical stores books means that consumers can work with
or without goals. Significantly Use theory is defined because the real behavior is to
encourage buyers to buy. However, it eats online advertising programs such as changes
and coverage. Because of the Impact on consumer behavior objective and economic
research. The organization is able to add value for Consumer Acquisition Rating
Behavior, regarding how to spend money and enjoyment which affects the buyer's
operations.
5.0 Conclusion and Recommendations
It can be said that advertisement has significant amounts of effects on the mind of consumers for
e-commerce businesses as well. The Internet offers many online stores around the world.
Advertising for e-commerce businesses has a modest impact on customer choice, with only about
half of respondents influencing the purchase decision. However, internet advertising is one of the
most important to find purchasing decisions for customers if they think there is a level of
interaction between them and the company buying the products. The survey also shows that
Internet advertising is closely related to the purchase decision. The research also shows that
Internet advertising, as an integral part of consumer behavior, contributes to most of the growth
of the Internet and consumer advertising. In order to get an image of the product and a better part
of the market, the advertiser should not pay attention. The beginning of each announcement
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should be based on diversity and reality. In this area, there is more emphasis on the character that
beauty and price. In creating effective advertising, one only need to send it 3 or 4 times a day,
otherwise one is bored. It is not necessary that direct information on an announcement that
fashion and beauty presented in the areas of product models, shows the bare truth about the most
attractive and exorbitant product. At the same time, advertisers should specify the price of the
product to make it easier for consumers. The quality of advertising should be attractive and
useful because it puts the consumer's head under the pretext. This is also an important reason
why multiple pricing systems do not force consumers to purchase goods until quality is achieved.
In addition, celebrities have a good impression, especially for fans and celebrities to the status of
celebrities and celebrities are aware, it is not necessary to be aware of when one send certain
publicity. Furthermore, advertising sensationalism is not always easy, but attractive. Later, a
more detailed and comprehensive study allows researchers to study the factors the attitude of
most newspapers can help brands and celebrities to large extent as when they are properly
designed and used and want to buy consumer behavior.
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