E-Commerce Marketing: Impact of Advertising on Consumer Behavior

This report investigates the impact of advertising on consumer behavior within the e-commerce market. It examines various advertising strategies employed by e-commerce companies and analyzes their effects on consumer decision-making processes. The study aims to bridge the gap in understanding how online advertisements, unlike traditional methods, influence both external and internal variables affecting consumers. The findings suggest a complex relationship, revealing a potential negative impact of advertising on e-commerce sales in Europe, while also highlighting the positive correlation between ad-based e-commerce portals and overall sales. The research emphasizes the importance of online advertising investments for companies seeking better conversions and maximized sales through strategic online opportunities. The report further explores the differences between online and offline stores, the impact of the internet on consumer behavior, and provides a literature review to support its analysis and conclusions. Desklib provides access to similar past papers and solved assignments to aid students in their studies.

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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