IMPACT OF INTERNET ADVERTISING ON CONSUMERS’ PURCHASE DECISION

ABSTRACT

The use of online advertisement in Nigerian market is increasing and businesses are more and more considering the internet as a source of marketing communication. However, few studies have considered the factors that influence online buyer’s decision when Nigeria is considered. Thus, the main objective of this study was to examine the factors that contribute to the effectiveness of online advertisements and how they affect consumers’ buying decision. JUMIA online shopping company was selected as the study organization. The targeted population was the entire students of University of Lagos, Akoka campus who must have at any time visited JUMIA online shopping platforms to make purchase. The method of carrying out the study was based on survey design. A total number of 180 undergraduate students were randomly selected from stratified groups within the University as sample size for the study. The survey questionnaire was used to collect primary data from respondents. The data collected was analyzed based on simple percentages and frequencies. The Chi-square technique was used to test the proposed test the proposed hypotheses. The core findings revealed that income of the user (c2 cal = 70.07) internet skills (c2cal = 87.65), cost of using the internet (c2 cal = 134.89), content of the advert (c2 cal = 70.074), location of advert (c2cal 98.69), and the quality of advertised products (c2 cal = 124.89) are significant factors that affect the effectiveness of online advertisement and therefore influences buyers’ decision. It was recommended that Web advertisers should try to provide adequate and relevant information content so that consumers consider web ads when making purchase decisions. In addition, government should make internet cost affordable to enhance customer accessibility, and issues of internet fraud should be handle appropriately.

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Advertising has been in existence for many decades. It is one means of promotional mix which has its ultimate function to inform, persuade and promote ideas in order to sell goods and services (Akinkugbe 2006; Kotler, 2009). Advertising, over the years, has grown to become a prominent form of marketing communication, and as a marketing communication tool, it utilizes various forms of mass media to get sales messages across to a large number of people. The traditional mass media for advertising include TV, broadcasting, magazines and newspapers (Belch & Belch, 1998). However, with the increasing development in information technology, the Internet in addition has become another interesting advertising media commonly used nowadays by advertisers and markets to communicate messages to consumers (Ashraf and Mohammed, 2012).

Internet advertising, (also known as online advertising) is the delivery of advertising messages and marketing communications through websites. It can be delivered through various electronic platforms including mobile phones, iPods, desktop computers, and laptops etc. As a marketing communication tools (Esiri, Kolade, Oloyede,  and Ogungbamigbe, 2014) internet advertising takes a multitude of forms, ranging from Search advertising to Banner and Rich Media Adverts (i.e. ads that incorporate sound, animation and interactive digital video commercials).