Impact of Advertising on Consumer Behaviour in E-Commerce Market

Impact of Advertising on the Consumer Behaviour in the E-Commerce Market
Student Name: Student ID:
Subject Name: Subject ID:
Date Due: Professor Name:
1

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.
2

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
3

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
4

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.
5

 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.
6