The Effects of Online Advertising on Consumer Behavior Decision Making: The Case Study of Samsung

Running head: DISSERTATION
The Effects of Online Advertising on Consumer Behavior Decision Making: The Case Study of
Samsung
Name of the Student:
Name of the University:
Author’s Note:

1DISSERTATION
Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ......................... whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the............... [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.

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Abstract
The aim of the research is to investigate the effects of online advertisement on consumer
behavior decision making by considering the case of mobile phone brand Samsung. Marketing
and advertising are the two important attributes that business organizations cannot and must not
compromise because the position is threatened largely. As traditional advertising is getting
obsolete due to the own set of challenges, online advertising is gaining preference across the
globe for the wide range of benefits it has to offer. The company does not have to go from place
to place for advertising the product or service. However, on the contrary, online advertising also
needs to be modified according to the location or destination for making the ads more impactful.
Samsung is a Korean multinational collaboration of several affiliated businesses that is
headquartered in Seoul. The mobile phone business under Samsung gained huge popularity
across the population across the globe. Samsung mobile offered high tech android features for
consumers with different financial stability thereby, making it a favorite among the consumers.
However, the rise of mobile phone brands such as Xiaomi, Asus and Lenovo have given rise to
tough and intense competition for Samsung as well that highlights the need of effective online
advertising for sustaining the position they hold in the mobile phone market.
The research will contribute socially by helping in identifying the potential challenges and issues
those arise while using online advertising. Identifying the challenges will contribute largely for
the business organizations because organizations will be able to use online advertising more
effectively and influence the behavior of the consumers efficiently. Rise of different mobile
brands have increased the level of competition largely thereby, making it difficult for established
and popular brands in influencing consumer behavior positively.

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Positivism philosophy, deductive approach, descriptive design and survey research strategy has
been used followed by selecting 70 consumers using non-probability sampling technique from
the entire consumer population using Samsung mobile phones. Primary data collection process
and quantitative data analysis technique has been used followed by using both descriptive and
inferential analyses using SPSS software.
From the first correlation analysis, it can be seen that all the factors affecting online
advertising are positively and strongly correlated with each other. Cost-effectiveness is strongly
and positively associated with global reach, convenience and technological availability as the
values obtained are .749, .729 and .741 respectively. Similarly, correlation values among global
reach with convenience and technological availability are .811 and .774 respectively. Moreover,
the correlation values among convenience and technological availability is .833 that also
indicates strong yet positive association. From the correlation test 2, it can be seen that consumer
behavior and online advertising are strongly and positively associated, as the value obtained
is .899. From the regression analysis it can be said that the null hypothesis is rejected and the
alternate hypothesis is accepted. This is because the p-value obtained is .000 that is less than
0.05. Hence, from the correlation and regression analysis, it can be said that the aim and
objectives is achieved along with accepting the alternate hypothesis successfully.

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Table of Contents
Chapter 1: Introduction..................................................................................................................11
1.0 Overview..............................................................................................................................11
1.1 Problem statement...............................................................................................................12
1.2 Research aim........................................................................................................................13
1.3 Research objectives.............................................................................................................13
1.4 Research questions...............................................................................................................13
1.5 Research hypotheses............................................................................................................14
1.6 Research rationale................................................................................................................14
1.7 Structure of the dissertation.................................................................................................15
1.8 Summary..............................................................................................................................16
Chapter 2: Literature review..........................................................................................................17
2.0 Overview..............................................................................................................................17
2.1 Conceptual framework.........................................................................................................17
2.2 Concept of online advertising..............................................................................................18
2.3 Factors affecting online advertising.....................................................................................18
2.3.1 Cost effectiveness.........................................................................................................18
2.3.2 Global reach..................................................................................................................19
2.3.3 Convenience.................................................................................................................20

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2.3.4 Technological availability............................................................................................21
2.4 Benefits of online advertising..............................................................................................21
2.5 Challenges of online advertising.........................................................................................22
2.6 Platforms of online advertising tools...................................................................................23
2.7 Traditional advertising versus online advertising................................................................23
2.8 Concept of consumer behavior............................................................................................24
2.9 Factors affecting consumer behavior...................................................................................25
2.9.1 Age................................................................................................................................25
2.9.2 Culture..........................................................................................................................26
2.9.3 Perception.....................................................................................................................26
2.9.4 Attitude.........................................................................................................................26
2.9.5 Trends...........................................................................................................................27
2.9.6 Personality....................................................................................................................27
2.9.7 Experience....................................................................................................................27
2.9.8 Socio-economic level....................................................................................................28
2.10 Models of consumer behavior...........................................................................................28
2.10.1 The Bettman information processing model...............................................................28
2.10.2 The Engel, Blackwell, Miniard (EMB) model...........................................................30
2.11 Need of positive consumer behavior.................................................................................31
2.12 Challenges in influencing consumer behavior...................................................................32

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2.13 Impact of online advertising on consumer behavior..........................................................32
2.14 Summary............................................................................................................................33
Chapter 3: Research methodology.................................................................................................34
3.0 Overview..............................................................................................................................34
3.1 Research outline...................................................................................................................34
3.2 Research philosophy............................................................................................................35
3.2.1 Providing reasons for using positivism philosophy......................................................35
3.3 Research approach...............................................................................................................36
3.3.1 Providing reasons for using deductive approach..........................................................36
3.4 Research design...................................................................................................................37
3.4.1 Providing reasons for using descriptive design............................................................37
3.5 Research strategy.................................................................................................................37
3.5.1 Providing reasons for using survey strategy.................................................................38
3.6 Sampling technique and sample size...................................................................................38
3.6.1 Providing reasons for using probability sampling technique.......................................39
3.7 Data collection process........................................................................................................39
3.7.1 Providing reasons for using primary data collection process.......................................40
3.8 Data analysis technique.......................................................................................................40
3.8.1 Providing reasons for using quantitative data analysis technique................................40
3.9 Ethical considerations..........................................................................................................41

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3.10 Accessibility issues............................................................................................................41
3.11 Summary............................................................................................................................42
Chapter 4: Data analysis................................................................................................................43
4.0 Overview..............................................................................................................................43
4.1 Findings and analysis...........................................................................................................44
4.1.1 Descriptive analysis......................................................................................................44
4.1.2 Inferential analysis........................................................................................................47
4.2 Summary..............................................................................................................................55
Chapter 5: Discussions..................................................................................................................57
5.0 Overview..............................................................................................................................57
5.1 Findings and interpretations................................................................................................57
5.2 Summary..............................................................................................................................63
Chapter 6: Conclusion and recommendations...............................................................................64
6.0 Conclusion...........................................................................................................................64
6.1 Linking with objectives.......................................................................................................65
6.2 Recommendations................................................................................................................67
6.3 Future scope of the study.....................................................................................................68
References......................................................................................................................................69
Appendix 1.....................................................................................................................................79
Survey questions........................................................................................................................79