Imapct factor(SJIF): 5.889
Influence of Electronic Advertising on Consumer Buying Behavior
Ahmad Askari1, Drhamidreza kordlouie2, Dr Vahidreza Mirabi3, Dr Shahram Zare4
1Department of Business Management,Qeshm international branch, Islamic Azad University, Qeshm, Iran.
2Department of Business Management, Faculty Member of Management, Qeshm international branch, Islamic Azad University, Qeshm, Iran.
3Department of Business Management, Faculty Member of Management, Qeshm international branch, Islamic Azad University, Qeshm, Iran.
4Department of Business Management, Faculty Member of Management ,Qeshm international branch, Islamic Azad University, Qeshm, Iran.
The aim of this study is to evaluate the influence of electronic advertising on consumer buying behavior. The statistical populations of this study are customers and consumers of big food stores in Shiraz. The study has a sample size of 400 people. The cluster random sampling method is done based on studied trait in the population with the highest prudential estimate of customers’ size. Cronbach's alpha for the whole questionnaire is 0.92. For data analysis and hypothesis testing, one sample t-test method and structural equation modeling were used. In analyzing the results and considering the lack of a direct impact of content triggers on behavioral response it can be stated that after obtaining information and awareness, and other content perceptions from internet advertising, consumer does not reach to behavior phase but he should pass the process of influencing
(Cognition, emotion and attitude) to reach the behavioral response. In other words, internet advertising is not instantaneously influential in many of the products which need a higher level of involvement and thinking. Therefore, their influential steps must be taken.
Key Words: Electronic Advertising, Process of Influencing, Consumer Behavior
The world of electronic advertising has undergone extensive development in two past decades. Along with the creation of new practices and technologies in online advertising in previous years, virtual advertising's share of the total advertising market has been steadily increasing. If in less than a decade ago, few advertisers were aware of the opportunities of cyberspace for advertising, now the turnover of online advertising in some countries, including America is more than the turnover of press advertising (Yazdanpanah, 2015). In Iran too a few years ago very few people were willing to spend money to advertise their products or services on the internet. Now many Persian popular websites are filled with advertising banners and in some of them places of advertising display are booked a few months earlier (Motovali, 2013). Internet advertising began from the early years of the web formation by displaying text and image advertisements on some popular websites. In addition to web displaying, group e-mail advertising was the other primary method. But with the beginning of the new millennium and the entrance of Google into the online advertising, online advertising became a serious business. Features such as a permanent display in a specific time range, going beyond the geographical area, flexibility in design and execution, the possibility of interaction with the audience, possibility to lead the audience to the target website, possibility to guide the audience to purchase goods or services, possibility of reporting from advertisements visitors and a few others are factors that have increased the passion for providing online advertisement. Spread of internet tools and increase of users provides more potential for online advertising (Mohammadian, 2014). Hence the emergence of the internet as a new media in communications and advertising is stimulated many researchers to carry out research in this area.
Advertising is considered as one of the most extensive areas of marketing systems. The importance of advertising is to the extent that in the minds of the ordinary people marketing term has become synonymous with advertising. Every year, billions of dollars are spent on advertising in the various media. Modern man lives under the heavy bombardment of advertising. Since a man wakes up until he goes to sleep, is exposed to a variety of different media advertising (Kord, 2013). Effectiveness of the advertising is a key point in assessing the advertisements. Advertiser companies are always interested to measure the effectiveness of their advertising. The effectiveness of advertising differs in various media. Media such as television, magazine, newspaper, radio, and more recently internet are platforms for advertising messages. Expansion of the internet has created a new space for consumers and dealers that provide the possibility of exchanges and sales (Asadi, 2012). Studies suggest that to increase effectiveness and better use of the internet, influential factors on behavior (behavioral response) should be recognized to have a better use of the advantages of advertising in order to take advantage of consumer needs. In other words, companies need advertising to conduct and execute their sales goals and profitability and in this regard they cost a lot. But for careful and effective planning and based on its ability, it is needed to know the behavioral response of consumer to electronic advertising. So in this study the factors of electronic advertising and its influencing processes on consumer behavior will be discussed.
Considering the importance and place of electronic advertising in recent years, knowing the factors of electronic advertising that create a favorable attitude for consumers and also knowing his behavioral responses to electronic advertising are the purposes of this study. So the main objective is evaluating the effectiveness of electronic advertising on consumer behavior.
Content triggers: triggers which have the below seven dimensions: 1. notifying 2. Entertaining 3. Persuasiveness 4. Crediting 5. Demography 6. Searching 7. Updating (Rieti et al., 2014).
Communicative triggers: triggers which have the below seven dimensions: 1. being interactive 2. availability 3. globalized 4. purchase facility 5. personalizing 6. cost effectiveness 7. evaluation and feedback (Wang et al., 2013).
Behavioral response: it includes images and subjectivity, intention and desire, testing, buying and use of the product by the consumer (Rieti et al., 2014).
Attitude: it is an internal feeling that the behavior is its exterior symbol (Venoos et al., 2015).
Entertaining factor: it is the ability to create entertainment and engagement for the user (Dukaf, 2012).
Notifying factor: it is the ability to provide information for consumer about the goods and services such as price, quality, packaging, etc. (Zhang & Wang, 2012).
Persuasiveness factor: it is the ability to motivate and stimulate consumer and his satisfaction (Rieti et al., 2014).
Crediting factor: it says that to what extent the advertising made through the internet for the audience is validated. In other words, to what extent it is believable and is valid for the audience (Zhang & Wang, 2012).
Interactive factor: it is the relationship between advertiser and audience which is bilateral (Dukaf, 2012).
Demographic factor (classification and separation of consumers): due to the internet capabilities, this type of advertising can send messages and promotions based on the separation of consumers by age, gender and more. Thus, for each group advertisementswill be prepared and sent (Wang et al., 2013).
Searching factor: it is the possibility of exploring and searching for audience beyond what is shown to him (Rieti et al., 2014).
Purchase facility factor: it enables the purchase of goods and services electronically (Razuk et al., 2013).
Personalizing factor: it offers a special advertisement to consumers based on the characteristics of the site and one on one connection with consumers on the basis of mutual interaction (Kale et al., 2014).
Availability factor: it is the ability of consumers to access advertisement at any time when he is using the internet (Razuk et al., 2013).
Evaluation and feedback factor: in internet advertising, unlike traditional advertising, advertiser can specify the number of people who will see advertisements and even the length of time that users spend viewing an advertisement is recorded. Therefore, this type of advertisement has the ability to measure audience and can get immediate feedback from customers and users in dealing with advertisement (Nelson, 2012).
Updating factor: according to internet capabilities this type of advertisement will be updated in low time and cost (Nelson, 2012).
Globalized factor: according to the use of World Wide Web pages on the internet, internet advertising, unlike traditional advertising has global reach and is available and comparable for all worldwide audiences (Nelson, 2012).
Cost effectiveness factor: internet advertising causes saving and benefits not only for the advertiser and seller, but also to the audience and the consumer. Because with the necessary information and comparisons, consumer can achieve the minimum purchase price and also can save time (Hawkins et al., 2014).
6.1 First Phase: Study and Review of Research Theories and Literature
The first step is to identify and explore the subject and to do that an in-depth study and extensive effort in the subject was appointed. The aim of this study was to obtain a deep understanding of the subject along with a variety of structures, concepts, variables and different aspects of the subject and their definitions. In general, electronic advertising model consists of six main variables that include:
6.2 Second Phase: Research Tools and Questionnaire Designing
Relying on done studies and with regard to structures, concepts and explanatory variables in the model and to navigate them, different indicators in similar and different studies for different variables has been collected and summarized. In this way the questions were designed and final questionnaire was developed. Then in order to validate the content, the designed questionnaire with an explanation of the study was delivered to a group of masters in the field of management. Based on the elites the final reform was done with the questionnaire and eventually the ultimate tools of research were formed. Two methods can be used to design the questionnaire: using existing questionnaires or questionnaire design. The questionnaire of this study is designed based on the obtained indexes of the mentioned research and its validity and reliability is measured and determined.
6.3 Third Phase: Explanation of the Research Community
Because this research intends to study the influence of electronic advertising on consumer behavior, in investigating of the different stores and advertising sites we concluded that due to the progress in providing advertising sites and the introduction of goods and products in various commodity groups, big food stores in Shiraz can be a suitable statistical population to examine and carry out the research. According to the research population of this study and the sampling method that is a cluster random sampling method based on studied trait in the population with the highest prudential estimate of customers’ size in big food stores in Shiraz, the sample size will be calculated by the following formula:
According to the number of obtained samples, questionnaires will be sent to the samples and due to its rate of return, can judge about the successful participation in research and collection of necessary and acceptable data. It should be noted that subjects in this study were 400 persons because of statistical test of factor analysis answers of at least 5 participants for each questionnaire item is required.
6.4 Forth Phase: Data Collection
Because this study involves two steps, appropriate to each step special scientific instruments are used for data collection. In the first phase library studies have been used to collect the required data. This method is used to identify models, theories, ideas, frameworks and also similar studies in the field of effectiveness of electronic advertising. The result of these studies was the extraction of components or triggers which in the influencing process of electronic advertising affect the behavioral reaction of consumers. After identifying and developing of influencing triggers in the process of electronic advertising and behavior of customer or consumer and explaining the hypotheses, in the second part of the study relationships between defined variables is pursued as the objective.
6.5 Fifth Phase: Modeling
6.5.1 Studying the Validity and Reliability of Data
The collected data in the previous step, with proper coding and entering into SPSS and LISREL software are used in a variety of validity and internal consistency (reliability) tests and using its results, the necessary reforms will be done on structural items in a manner that variables have the best representation of the research structures.
6.5.2 Structural Equation Modeling and Hypotheses Testing
In the final step research structures will be explored and assessed. For this purpose, first evaluation models were explained and the relationship between observed and latent variables is confirmed using exploratory and confirmatory factor analysis and SPSS and LISREL software. In other words, the resulting scales in exploratory factor analysis are evaluated and refined by confirmatory factor analysis before overall model testing (Sarmad et al., 2014). At this step the structures and coefficients of the effect of observed variables on the latent variables are analyzed and verified. In the next step, hypotheses will be tested and explored using structural equation modeling.
6.6 Analysis of the Current Status of Research Variables
At this stage the results of the analysis of the current status of the variables in the target population are investigated. For this purpose, one sample t-test method was used and results are summarized in Table 1-1.
Table 1-1: available status of research variables
As can be seen in the above table, the average of content triggers, communicative triggers, cognitive reaction, emotional reaction, attitude and behavioral reaction variables is higher than the criterion average. According to the obtained T in 399 degrees of freedom, the difference between average of these variables and the criterion average (3)
is significant. Thus, it can be said that the average of these variables in this study is more than medium.
6.7 Test of Research Hypotheses Using Structural Equation Modeling
In Behavioral Sciences Research multivariate analysis is considered as one of the most powerful methods of analysis. Because the nature of most issues in the Behavioral Sciences Research is multivariate and cannot evaluate them in bivariate methods (each time only one independent variable and one dependent variable are considered). Hence, in the present study to examine the hypotheses, structural equation modeling was used. Figures 1-2 and 1-3 show the structural equation modeling used in this study in two forms of standard estimation and significant coefficients. As can be seen in mentioned figures except content triggers effect on behavioral reaction, the relationship between other variables is positive and significant.
Figure 1-2: structural equation modeling in standard estimation mode
Figure 1.3: structural equation modeling in significant coefficients mode
In this part the results of the data analysis with respect to each hypothesis are discussed:
Investigation of the first hypothesis showed that content triggers don’t have a positive (0.04) and significant (0.88) impact on consumer behavioral response.
Investigation of the second hypothesis showed that content triggers have a positive (0.50) and significant (8.14) impact on consumer cognitive response.
Investigation of the third hypothesis showed that content triggers have a positive (0.31) and significant (4.30) impact on consumer emotional response.
Investigation of the fourth hypothesis showed that content triggers have a positive (0.26) and significant (4.10) impact on consumer attitude.
Investigation of the fifth hypothesis showed that communicative triggers have a positive (0.40) and significant (7.81) impact on consumer behavioral response.
Investigation of the sixth hypothesis showed that communicative triggers have a positive (0.46) and significant (7.89) impact on consumer cognitive response.
Investigation of the seventh hypothesis showed that communicative triggers have a positive (0.42) and significant (7.35) impact on consumer emotional response.
Investigation of the eighth hypothesis showed that communicative triggers have a positive (0.72) and significant (9.85) impact on consumer attitude.
Investigation of the ninth hypothesis showed that cognitive response has a positive (0.52) and significant (8.29) impact on consumer behavioral response.
Investigation of the tenth hypothesis showed that cognitive response has a positive (0. 27) and significant (4.06) impact on consumer emotional response.
Investigation of the eleventh hypothesis showed that emotional response has a positive (0.63) and significant (8.74) impact on consumer behavioral response.
Investigation of the twelfth hypothesis showed that emotional response has a positive (0.41) and significant (7.82) impact on consumer attitude.
Investigation of the thirteenth hypothesis showed that attitude has a positive (0.52) and significant (8.30) impact on consumer behavioral response.
Investigation of the fourteenth hypothesis showed that due to the consumer cognitive response, emotional response and attitude, content triggers have a positive and significant impact on consumer behavioral response. As it was observed in the first hypothesis investigation, content triggers directly and alone have no significant effect on the consumer behavioral response, but because based on the relevant hypotheses cognitive response, emotional response and attitude have a positive and significant impact on each other and also on behavioral response, it can be stated that due to these three variables content triggers have a positive and significant impact on consumer behavioral response.
Investigation of the fifteenth hypothesis showed that due to the consumer cognitive response, emotional response and attitude, communicative triggers have a positive and significant impact on consumer behavioral response. As it was observed in the fifth hypothesis investigation, communicative triggers directly and alone have a positive and significant impact on consumer behavioral response. Furthermore, based on the relevant hypotheses cognitive response, emotional response and attitude have a positive and significant impact on each other and also on behavioral response. Therefore, it can be stated that due to the cognitive response, emotional response and attitude, communicative triggers have a positive and significant impact on consumer behavioral response.
The results of the hypotheses test and investigating the quality of the studied variables in the statistical population has made clear some facts that needed analysis should be done about it. Because after going through different stages, one of the research processes is opinions gathering, literature review, data gathering, data analysis and statistical test and finally hypotheses test and model testing. The results and findings will be analyzed to better benefit from these findings in different directions.
Pacific Institute of Management, Pacific Hills, Airport Road, Udaipur - 313001,