Online Advertising Impact on Customer Purchase Intentions: Morrison's

This report investigates the effectiveness of online advertising strategies on customer purchase intentions, using Morrison's, a major UK supermarket chain, as a case study. The study explores the background of online advertising, its significance, and its impact on consumer buying behavior. The research includes a literature review covering advertising strategies, consumer buying behavior, and the impact of online advertisements. The methodology outlines the research paradigm, approach, purpose, strategy, data collection methods (including surveys), sample selection, data analysis plan, ethical considerations, and research limitations. The results section analyzes customer perceptions of online advertising, including demographic data, and evaluates the relationship between online marketing and sales. The report also addresses store managers' perceptions of online advertising. The study aims to evaluate the positive and negative impacts of online advertising on customer purchase intentions and offers recommendations for improving marketing campaigns. The report concludes with a reflective statement and a list of references.

Effectiveness of online advertising on customer
purchase intentions: Morrison's Case

ACKNOWLEDGEMENT

ABSTRACT

Table of Contents
Chapter 1: Introduction....................................................................................................................7
1.1 Background of the Study.......................................................................................................7
1.2 Rationale of the Study............................................................................................................8
1.3 Problem Statement.................................................................................................................8
1.4 Aim and Objectives................................................................................................................9
1.5 Research Questions................................................................................................................9
1.7 Structure of Dissertation......................................................................................................10
Chapter 2: Literature Review.........................................................................................................12
2.1 Introduction..........................................................................................................................12
2.2 Advertising...........................................................................................................................12
2.3 Strategies of Online advertising and its Significance..........................................................13
2.4 Consumer buying behavior..................................................................................................18
2.5 Impact of online advertisement on consumer buying behavior...........................................19
2.7 Conclusion...........................................................................................................................21
Chapter 3: Research Methodology.................................................................................................22
3.1 Introduction..........................................................................................................................22
3.2 Research Paradigm...............................................................................................................22
3.3 Research Approach..............................................................................................................22
3.4 Research Purpose.................................................................................................................23
3.5 Research Strategy.................................................................................................................23
3.6 Data Collection Methods.....................................................................................................24
3.7 Sample Selection..................................................................................................................25
3.8 Data Analysis plan...............................................................................................................25
3.9 Ethical Consideration...........................................................................................................26

3.10 Limitations of the Research...............................................................................................27
Chapter 4: Results, Analysis & Disscussion..................................................................................28
4.1 Introduction..........................................................................................................................28
4.2 Hypothesis............................................................................................................................28
4.3 Customer perception towards online advertising.................................................................28
4.3.1 Demographic.....................................................................................................................28
4.3.2 Perception of respondents towards Online Advertising and Shopping............................32
4.3.2 Interpretation.....................................................................................................................37
4.3.3 Customer perception towards Morrison’s advertising and products................................38
4.3.3 Interpretation.....................................................................................................................42
4.3.4 Descriptive Analysis.........................................................................................................43
4.3.4 Interpretation.....................................................................................................................44
4.3.5 Hypothesis.........................................................................................................................45
4.4 Store managers perception towards online advertising.......................................................48
4.4.1 Frequency table.................................................................................................................49
4.4.2 Hypothesis.........................................................................................................................52
4.5 Conclusion...........................................................................................................................54
Chapter 5: Conclusion and Recommendation................................................................................55
5.1 Conclusion...........................................................................................................................55
5.2 Recommendation.................................................................................................................57
Reflective statement.......................................................................................................................59
References......................................................................................................................................60

CHAPTER 1: INTRODUCTION
Title: “To evaluate the effectiveness of online advertising on customer purchase
intentions: A case of Morrison plc”.
1.1 Background of the Study
In the present era where competition in every sector is hampering the functioning of
business enterprises, it has become essential for the firms to carry out effective strategies so that
desired results and outcomes can be generated. In this regard, advertising is considered as one of
the most significant tools for making business operations successful. However, it is one of the
major keys to open the door of contemporary corporate market (Aaker, 2006). Every company
irrespective to its sector is making huge investment on advertising its products and services so
that they can promote their offerings in an effective manner and generating higher demand. In
general terms, advertising is the medium through the means of which company can spread the
messages to its target audience by spending adequate funds. However, it is the means of creating
communication platform between company and customers. Advertisement is also taken as a very
strong strategy of promoting products and services that are offered by an organization to gain
attention from customers and targeted groups and sometimes used just to remind customers mind
about the products (Smith, Meurs and Neijens, 2006).
Operating in one of the most competitive environments of retail sector, it is important for
the senior authority of Morrison plc to use advertising as the major tool for promoting or
marketing its wide range of offerings so that customers can be influenced for buying the
commodities. For the current dissertation, Morrison plc has been selected which is the fourth
largest chain of supermarkets in UK. Operating in retailing industry, Morrison has to face
mammoth amount of pressure from its competitors. Thus, this research is based on UK’s retail
industry mainly on Morrison supermarket and its online advertisement and study of the way in
which it is affecting the consumer’s buying intentions. Also, the study of range of competitors
that are using same kinds of strategies of online platform for advertisement is covered in this
research. Moreover, this study tries to explore positive and negative effects of advertisement on
business and also on purchase intention of customers. Furthermore, present study focuses on
evaluating the effectiveness of online advertising or the contemporary advertising on customer
purchase intention with regard to Morrison offerings. With changing trends, it has become vital
for companies especially in retail sector to indulge new approaches and methods for marketing
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and promoting their products so that purchase intention of target audience can be influenced in
the favor of company’s offerings.
1.2 Rationale of the Study
As illustrated above, changing environment and trends has affected the functioning of
several businesses. However, it is important for the senior authorities to ensure that they employ
suitable strategies and tactics which lead in generating effective results and outcomes. Looking at
the present market condition of retail industry in UK and around the globe, it has become
significant for companies that are operating in it to ensure an effective marketing and
promotional strategies. In this regard, online advertising is one of the most significant tools for
promoting the products especially when there is wide range of substitutes or alternative
commodities available. The main purpose of researcher behind carrying out this study is to
understand the extent to which online advertising effectively influencing the customer purchase
intention. However, incidentally, the traditional form of advertising such as television and print
media are failing to deliver the message to customers in an effective and efficient manner.
Sometimes, too much repetition in the message creates monotony in the mind of consumers.
Further, the new generation is shifting its interest towards retail food product as it provides
readily available authentic information about the offering (Brettel and Attig, 2010). Further,
online marketing also allows the scope of interaction with different customers through different
social media which sometimes influence the behaviour of consumers.
The study aims to analyse the impact of online advertisement on customer's purchase
decisions and reason behind selecting this particular research topic is increasing frequency of
online purchase of goods and services. The study has been carried out so as t identify the
effectiveness of online advertisement and its contribution in growth of retail business. All the
retail entities in UK marketplace have started selling the goods through online sources and this is
another imperative reason to find out the effectiveness of online advertisement. Customer intends
to purchase goods from online services because they consider the source convenient enough to
purchase variety of products. Online advertisement also reflects that retail industry is concerned
towards technological innovations. Further, customer purchase products from online sources
when they find the services highly valuable and different as compared to the competitors. As
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compared to other retail entities, Morrison's have also entered into online marketing because that
allows the business entity to persuade more customers towards business services.
1.3 Problem Statement
In the current research, investigator focuses on developing suitable understanding
regarding the use of online advertising in influencing the purchase intention of customers. In
traditional advertising, repetitive marketing with similar type of information sometimes creates a
lot of distraction in the mind of consumers. Instead of choosing a particular product, consumers
become confused with the message delivered by the organization. Despite of huge investment in
the promotional campaign, Morrison plc is facing similar type of problem. Somehow, the brand
awareness and market penetration gets stuck despite of such a heavy investment. Thus,
organization is losing its market share and sales as compared to its competitors. Thus, through
the means of present study, researcher will illustrate the significance of online advertising for
attracting large number of customers as well as for influencing them to buy the products.
1.4 Aim and Objectives
Aim:
Main aim of present research is to evaluate the positive and negative impacts of
advertisement from a company which are delivered to customers and the response given by them
and the behaviour and perception of consumers towards the product based on advertisement.
Objectives:
In order to achieve the above defined aim, it is important for the investigator to develop
various small objectives that will lead to understand different aspects of the selected topic.
However, objective of this research is to study the impact or effectiveness of advertisement that
is delivered through various mediums and also, the buying behaviour or purchase intention of
consumers depending on the advertisement of product. Followings are the main objectives of
current study:
 To study various mediums of delivering and producing advertisement, including online
and offline.
 To identify the impact of online advertisement on customer's purchase decisions.
 To evaluate the relationship of online marketing with company's sales and profitability.
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 To investigate the perception of customers regarding branded and non-branded products
due to advertisement.
1.5 Research Questions
Research questions are the important aspect of study as it helps the researcher to carry out
entire course of investigation on the selected topic in a reliable and suitable manner. These
questions help in addressing different elements of a study which lead to generate suitable and
effective findings on the basis of which appropriate conclusion and recommendations can be
made. Following are the research questions for the present selected topic:
 Does online advertisement play a significant role in consumer’s buying behavior or
purchase intention?
 How online advertisement affects the buying decision of consumers?
 Do established brand need equal advertisement product as compared to a non-established
branded product? In what ways Morrison plc can improve its marketing or promotional campaign and can
attract large number of audience?
Hypothesis:
 Ha1: Online advertisement alters the purchasing intention of consumers.
 Ha0: Online advertisement does not alter the purchasing intention of consumers.
 Hb1: Advertisement leads the consumers towards correct product.
Hb0: Advertisement misleads the consumer and places them in dilemma in choosing right
product.
1.7 Structure of Dissertation
In a research study, structure consists of great importance because it is a way through the
means of which researcher will conduct the whole study and would generate the findings. In this
regard, it is the responsibility of investigator to follow an appropriate and suitable structure in
order to carry out the entire course of study in the best possible manner. There are different
chapters which are involved in the dissertation that need to be conducted one by one so that
appropriate results can be achieved. Following is the structure of present study:
Chapter 1 Introduction: Under this part, researcher focuses on illustrating the brief
description about study so that leaders or readers can create suitable understanding about the
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selected topic (Ching and et.al, 2013). However, researcher in this section makes valiant efforts
in attracting the concentration of readers by highlighting the vital elements in a suitable manner.
Furthermore, in this section, researcher defines aim and objectives as well as research questions
and lastly, the structure of dissertation is being highlighted for the understanding of reader.
Chapter 2 Literature review: Main purpose of this chapter is to enhance the theoretical
knowledge of learners regarding the selected topic. However, with the help of views and
thoughts of different authors and scholars, researcher analyzes various aspects of the selected
topic. In general terms, literature review can be defined as the synopsis of all past findings and
studies made by different authors and experts related to the selected topic. Furthermore, this
section assists in providing suitable understanding regarding the topic which helps at the time of
analyzing data.
Chapter 3 Research methodology: This is another major aspect of the dissertation.
However, under this section, investigator defines different tools and techniques through the
means of which he/she is going to carry out the entire course of study. There are several elements
that are important for the investigator to consider such as research design, approaches, sampling
and collection of data, analysis of collected data as well as ethical consideration and limitations
of the research.
Chapter 4 Data Analysis and Findings: Through different tools and techniques,
researcher is able to collect a wide range of data or information (Corkindale and Newall, 2011).
Thus, in order to analyze the gathered information, it is important for the investigator to conduct
this section. In this, collected data is analyzed and presented in a suitable and reliable manner so
that readers or learners can easily understand. By the means of this chapter, researcher is able to
define conclusion and recommendations for the study.
Chapter 5 Conclusion and Recommendations: It is the last segment of entire
dissertation. However, under this chapter, researcher presents the conclusion on the basis of
generated findings and gives recommendations for the future aspects. It is important for the
investigator to conduct whole study in a suitable and reliable manner so that appropriate
conclusion and recommendations can be provided (Culpepper, 2003).
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
In terms of a dissertation, literature review is considered as the most significance part of
the whole body. However, the main purpose of investigator behind including this section in the
whole study is that, it assists in developing suitable and reliable theoretical base on the selected
topic so that better understanding can be developed. Other than this, it is denoted as the
secondary study which is done with the aim of reaching defined objectives of the current
investigation. Herein, study deals with the thoughts and views of different authors presented in
their past findings, articles, online blogs etc. related to the selected topic. In the present study,
researcher focuses on evaluating positive and negative impact of online advertising involved by
different companies in their respective sector to influence buying behavior. Furthermore,
literature review addresses the significance of online advertising in retail industry and its effects
on the consumer buying behavior. Along with this, investigator put valiant efforts to understand
the perception of customers regarding branded and non-branded products of the companies
operating in UK retail industry. Lastly, it illustrates the effective strategies for advertising and
products and services of companies dealing in competitive environment of retail sector.
2.2 Advertising
According to the study of Fletcher (2004), advertising can be defined as the appropriate
method communicating with the defined users of products and services. However, this is the paid
messages of the companies in order to create awareness among the offerings and generate sales
(Fletcher, 2004). Supporting to this fact Green (2011) illustrates that, the main role of advertising
is that it simulates demand. Furthermore, it is the means identifying current problem, opportunity
for the products, services or corporate brand. In addition to this author states that, it is the most
distinctive and relevant mode of communicating to the target audience and influencing them to
buy the commodities (Green, 2011). According to American Marketing Association (1948),
Advertising is any paid form of non-personal presentation and promotion ideas, goods, or
services by an identified sponsor. Similarly, advertising is an activity of a business with
employing creativity, technique and design in order to communicate in mass media to promote
particular goods, idea and services in a manner to achieve the objective.
On other hand, Kennedy (2005) stated that, advertisement as a salesmanship in print. By
comparing and contrasting different definitions, a working definition of advertisement could be a
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mass paid message for the building of brand through persuasive communication and position
them into consumer’s perception, by considering marketing environment and consumer
expectations. In this regard researcher evaluated from the article of Hadija and et.al, (2012) that,
advertising can be defined as the tool to create awareness about the wide range of commodities
offered by the company to its target market (Hadija and et.al, 2012).
2.3 Strategies of Online advertising and its Significance
Accordion to Hanafizadeh and Payam, (2012), digital marketing has come a long way,
however, social media has catch the speed in recent years, but digital marketing was one of the
major tool from year’s pasts. The most effective online advertising strategy was considered to be
pay per click (Hanafizadeh and Payam, 2012). Similar to this study of Hartnett (2006) helps in
understanding that, with constantly changing search engine optimization (SEO) has encouraged
marketers to adopt new ways of marketing and promoting their products and services. In this
regard, keyword search is the biggest revolution in the digital marketing. Further, author states
that, it is the duty of marketers to keep up pace with changing digital media landscape and those
who are unable to do so their company inevitably fall behind in the ever changing corporate
environment (Hartnett, 2006).
In this regard, article of Saleh (2014) on “Effectiveness of Online Advertising” clear
illustrates that, whenever people talks about advertising 9 out of 10 prefers to online advertising.
Considering the success rate of advertising for both small and large sized enterprises it has been
identified that it is high profitable because of the reason that, companies using this approaches
helps in attracting new customers and more importantly assist in developing long term
relationship with existing customers base (Saleh, 2014). Further, author states, reports clearly
indicate that, around 95% of revenue generated by Google is with the help of online advertising.
Hua and Sheng, (2010) stated that, despite generation of new methods of advertising, companies
does not have fully avoided the traditional way of marketing and promoting their products and
services. Arguing to this fact Kharabanda (2010) illustrated that, 93% of B2C marketers
irrespective to their sectors use social media and 80% of electronic newsletters (Kharabanda,
2010).
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