Effect of Pay Per Click to Small Businesses: A Case Study of Jesmond Dene Hotel Executive Summary

DISSERTATION
ON
EFFECT OF THE PAY PER CLICK TO SMALL BUSINESSES: A CASE
STUDY OF JESMOND DENE HOTEL
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EXECUTIVE SUMMARY
With time, there are many changes that has taken place within marketing of products and
services. In this context, services and products that are delivered online are more effective when
compared with any other tool. In this contex, pay per click can be determined as a business
model in whic advertisement is placed of the products and services that organization is willing to
present to customers. Present report is about Jesmond Dene Hotel which is aiming at making use
of pay per click advertisment in order to attract more and more customers. As per the findings, it
has been identified that pay per click is one of the effective source of advertisement and it
enables to develop strong customers base. Further, one of the advantages is that it is cost
effective as cost depent upon the type of additional services that are being used for pay per click.
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TABLE OF CONTENTS
CHAPTER 1 INTRODUCTION..............................................................................................................4
1.1 Overview of the topic............................................................................................................4
1.2 Rationale of the study............................................................................................................5
1.3 Research aims and objectives................................................................................................5
Research Aim..............................................................................................................................5
Research Questions.....................................................................................................................6
1.4 Research questions.................................................................................................................6
1.5 Structure of all the chapters...................................................................................................6
CHAPTER 2 LITERATURE REVIEW....................................................................................................8
Pay Per Click Advertising...........................................................................................................8
Process of Pay Per Click..............................................................................................................9
PPC mechanism.........................................................................................................................10
Advantage of pay per click advertising for small business enterprise.......................................12
Challenges in creating PPC advertisements..............................................................................14
Negative effects of using PPC for small enterprises.................................................................16
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................19
3.1 Introduction..........................................................................................................................19
3.2 Research philosophy............................................................................................................19
3.3 Research Approach..............................................................................................................20
3.4 Research Design..................................................................................................................21
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3.5 Research strategy.................................................................................................................21
3.6 Data collection.....................................................................................................................22
3.7 Sampling..............................................................................................................................23
3.8 Data Analysis Plan...............................................................................................................23
3.9 Ethical considerations..........................................................................................................24
CHAPTER 4 DATA ANALYSIS.........................................................................................................25
CONCLUSION..............................................................................................................................37
RECOMMENDATION.................................................................................................................39
REFERENCES..............................................................................................................................43
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CHAPTER 1 INTRODUCTION
The main aim of the present research study is to analyze the effect of pay per click on
business entities. Regarding this, the study has been conducted on Jesmond Dene Hotel which is
a three star hotel operating business in London. In this realm, discussion has been included about
the concept of Pay Per click advertisement on business organizations (Shipley and Kleiner,
2005). Along with that, researcher has also focused on advantages and role of pay per click in
promoting business services. The chapter of introduction provides a basic overview of the topic
along with the aims and objectives. Besides this, researcher has also stated background along
with the rationale for which the study is being conducted. Lastly, structure of all the chapters are
discussed briefly in the research work.
My passed experience at west-end Company involved many of marketing techniques and
strategies. One of the many techniques was using Pay Per Click, which was the main way of
making profit for the company, the manger uses such techniques to promote the firm among
there competitions. By using the Pay Per Click method or techniques the firm had made a head
step to other big firm such as Adison Lee. Choosing this particular marketing strategy invoked
my imagination to understand the affect that will have to small companies such as West-end Car
company and to find out whether worthwhile implement it or not. The firm was making good
profit before the American company entered the UK market in a name of Uber. The company
could not survive with the new technology that the Uber implemented. As consequences the firm
closed down last year despite of using other techniques beside Pay Per Click.
1.1 Overview of the topic
Pay Per Click is a cost per click advertisement model through which advertiser can
publish the adverstiment on a website through different networks and sources. The tool is also
commonly associated with first tier search engines in which companies and customers can bid
for the products and services they need to purchase. It is also an internet marketing formula that
is used to price online adverstiment. In such programs, the online advertisers pay internet
publishers to promote the business upon PPC regardless if the sale is made or not. In pay per
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click in search engine advertising, the advertiser would typically bid a keyword so the PPC rate
changes (Kent, 2006).
The tool is also useful for the purpose of catering searches and advertisers
simultaneously. It also compromises their user base while on the other hand, it provides them
another stream of revenue. However, it has also been observed that Google rewards are available
for the companies for the purpose of promoting the channel for different products and services
(Thome and et.al., 2014). Hence, it is clear that it is not about bidding; but it is far more than a
source of promoting the business products and services. Thus, the study has described the
benefits of pay per click on customer base and along with that, researcher has also stated the way
through which online business prospects can be managed suitably.
1.2 Rationale of the study
The present research study has been made with an attempt to highlight the concept of pay
per click adverstiment along with its benefits to business entities. Pay per click is an online
advertising model in which business entities display advertisements for their goods or services at
the time when people search for things on online sources. Most of the time, Pay per click refers
to a paid search advertising or search marketing that is the practice of online advertising. Well
managed and optimized PPC campaigns can be considered a cost effective form of advertising
because it involves several activities that changes the promotional values of business practices.
Unlike traditional forms of advertising, Pay per click is designed to reach individual site
visitors who have already expressed interest in a product or service (Trehan, 2007). Thus,
through the basic concept, it can be said that pay per click is not just a source of promoting and
advertising the products; but also it aids in creating customer base on higher extent. In this
respect, researcher has also discussed the complimentary aspects of pay per click on inbound
marketing efforts. This is also essential for the purpose of maximizing the business success
facets (Tavares Thomé and et.al., 2012).
Problem statement
The entire research work has been focusing on using pay per click mechanism; hence in
this respect Jesmond Dene Hotel is also emphasizing on the use of pay per click technique. In
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current scenario, pay per click technique is being used as a source of promoting the products and
services in the market place. Thus, the main emphasis of the research work has been laid on
Jesmond Dene Hotel which is using pay per click technique.
1.3 Research aims and objectives
Research Aim
The main aim of this research proposal is to analyze the effect of the PPC (pay-per-click)
to small businesses- A case study of Jesmond Dene Hotel
Research Questions
 What is the meaning and significance of using pay per click advertising for small and
medium business enterprises?
 What are the different challenges that Jesmond Dene might face while developing
The research questions are being made for the purpose of analyzing significance to
companies using pay per click advertising technique. As business entities are using the
techniques for different purposes; therefore is crucial to ascertain the benefits of the same.
Hence, the study is being proposed for the same aspect.
1.4 Research questions
 To understand the meaning and significance of pay per click advertising
 To analyze the advantages of PPC for small business enterprises
 To analyze the challenges that Jesmond Dene face while developing PPC for their
business.
1.5 Structure of all the chapters
The subsequent dissertation has been prepared in a specific manner with systematic
structure.
 Chapter 1 is Introduction in which researcher has given overview about the topic and
along with that, discussion is also made regarding the benefits of pay per click to business
entities. Introduction is also the major section through which the study can be made
comprehensive. Thus specific data has been used in the research study (Hoy, 2009).
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 Chapter 2 is about Literature review in which researcher has explained each and every
aspect of the study in detailed manner. In order to complete the research work, researcher
has used secondary sources wherein books, journals and articles have been reviewed.
Thus, viewpoints of different scholars and authors have been taken in the study for
specifying the relevancy of the research work.
 Chapter 3 is made for research methodology in which researcher has described different
tools and techniques through which aims and objectives of the study can be
accomplished. Hence, different methodologies will be taken into account for the purpose
of completing the research study (Flick, 2011).
 Chapter 4 includes data analysis in which researcher has used Qualitative technique to
analyze the impact of pay per click on small business entities. In this chapter,
questionnaire has been evaluated with the help of Thematic analysis and along with that,
graphs, charts and tables are also prepared for the same context.
 Chapter 5 is all about conclusion and recommendation in which the study has been
summarized in appropriate manner. Further, recommendations are also stated in terms of
improvement.
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