Final Thesis

Effect of online advertisements on Consumer Behavior
By
Ali Raza
Thesis submitted to the Lahore School of Economics

in partial fulfillment of the requirements for the degree of
Business Administration in Marketing & Media
2013
Supervised by: Shamila Khan
Declaration
I declare that all the work in this study is my own personal effort. Nothing has been plagiarized
from any other source and has been check by turnitin.com. Wherever any idea is taken from
some other source, proper references have been mentioned. The study has been scanned for
plagiarism, and has been found free of any sort of copied material.
_____________________
STUDENT NAME
Date: ________________
Certificate of Approval
I certify that I have read Effect of online advertisements on Consumer Behavior by Ali
Raza, and that in my opinion this work meets the criteria for approving a thesis submitted in
partial fulfillment of the requirements for the Bachelor of Business Administration Honors
Degree at the Lahore School of Economics (2013).
_________________________________
Ms. Shamila Khan
Thesis Supervisor
Date: _______________________
Authorization Letter
I hereby declare that I cannot use this thesis without the consultation of my supervisor
And she cannot use this thesis without my consultation.
Ali Raza
Date: 27-03-2013
ABSTRACT
The study was conducted in an attempt to bring forward the factors which are affecting the rate
of online advertisement and e-business in Pakistan. Moreover, social media and networking has
also been extensively studied in this research through different variables which can significantly
affect the advertisement on social media. The data collected from the sample has been analyzed
through different tests including ANOVA, T Test and regression analysis. The major findings
show that most of the variables taken under consideration were not significantly affecting the
scope of online advertisement in Pakistan. With respect to demographics, income and gender
were seen as insignificant and did not affect the behavior of consumers regarding online
advertisements. The findings of the study were new and different from the prior researches
Contents
Chapter 1: Introduction....................................................................................................................7
1.1 An overview of the topic........................................................................................................7
1.2 Managerial Concerns.............................................................................................................8
1.3 Study Objectives:...................................................................................................................8
1.4
Scope of the study:............................................................................................................9
1.5 Contributions:.......................................................................................................................11
1.6 Research in Pakistan:...........................................................................................................11
1.7
Definitions of major terms:.............................................................................................12
Chapter 2: Literature Review.........................................................................................................15

Chapter 3: Methodology & Analytical Choices.............................................................................24
3.1 Research type:......................................................................................................................24
3.2 Data & Type of Research methods:.....................................................................................24
3.3 Research Hypothesis:...........................................................................................................24
3.4: Theoretical Framework & Variables under Consideration:................................................26
3.4.1: Reference list of Variables under consideration:..........................................................26
3.4.2: Theoretical Framework..............................................................................................29
3.5: Information Gathering & Sampling:...................................................................................31
3.5.1: Survey Design:.............................................................................................................31
3.5.2: Population and Planned Sample...................................................................................31
3.5.3: Sampling size consideration:........................................................................................31
3.5.4: Choice of Sampling Techniques...................................................................................32
3.5.5 Questionnaire development:..........................................................................................32
3.6 Data Analysis Tools & Techniques:.....................................................................................35
3.6.1: Multiple Linear Regressions:.......................................................................................36
3.6.2: Parametric Tests of Significance:.................................................................................37
3.6.3: Testing Significance of Repressors & of the overall equation:....................................37
Chapter 4: Analysis........................................................................................................................38
4.1.1: Description of Demographics..........................................................................................38
6
4.2: Testing of Null Hypothesis:................................................................................................48

Chapter 5: Summary, Findings, Conclusions, Discussion and Future Recommendations............49
5.1: Summary:............................................................................................................................49
5.2 Limitations of the study:......................................................................................................49
5.3 Findings:...............................................................................................................................50
5.4 Conclusion:..........................................................................................................................56
5.5 Discussions:.........................................................................................................................56
5.6 Managerial Implications:.....................................................................................................57
5.7 Further recommendation:.....................................................................................................57
References:.................................................................................................................................59
APPENDIX 1.................................................................................................................................64
Questionnaire.............................................................................................................................64
List of Figures:
Fig: 1 Theoretical Framework 31
Fig: 2 Sampling. 32
List of Tables:
Table 1Questionnaire Development...............................................................................................33
Table 2 Constructive & Operative definitions...............................................................................34
Table 3 Average of variables..........................................................................................................36
Table 4 Frequency of Gender.........................................................................................................39
Table 5 Frequency of Income........................................................................................................40
Table 6 Correlations......................................................................................................................40
Table 7 Independent Samples Test for Gender..............................................................................43
Table 8 ANOVA for Income..........................................................................................................45
Table 9 Brand Exposure.................................................................................................................46
Table 10 Coefficients (Brand Exposure).......................................................................................47
Table 11 Consumer Willingness....................................................................................................48
Table 12 Coefficients (Consumer willingness)..............................................................................48
Table 13 Consumer Behavior........................................................................................................49
Table 14 Coefficients (Consumer Behavior).................................................................................50
Chapter 1: Introduction
1.1 An overview of the topic
The world is speedily turning into a global village due to hasty technological
developments and advancements. The buying pattern and preferences of the consumers are
changing with the arrival of every new technology within the market. The buying styles have
also seen a commendable change within the last few decades with the advent of e-business. The
e-business is a growing market which is gaining immense popularity in the current era, at a
global scale. With the growth of e-business, online advertisements have also gained popularity
among the masses. Many companies, especially the international firms, have adopted online
advertisement to increase awareness about their products or services on a large scale. Moreover,
most of the companies are even using online advertisements as a mean to re-position their brand
image.
With the advancement of technology, more and more people are gaining access to
internet and increasing their exposure in the world. This opportunity has been cashed by the
marketers and they have used different softwares to make the online ads extremely appealing by
adding flash elements and user-friendly technologies. The vast trend of internet has altered the
way in which business is conducted. Now a day, most of the transactions are taking place online.
People view the advertisements and order the products online. Even the auctions are done online
these days, and online advertisements are a major tool through which word of mouth easily
circulate from different groups or blogs.
But if one considers Pakistan, then this trend of online advertisements and shopping is
not yet very common here, as the people are less familiar with this concept. Pakistan is still a
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third-world country where development is taking place at a snails pace.
Therefore, such
developments are still not common here. Moreover, the literacy rate is low and the income of the
people is also low, therefore, very few people are familiar with this concept of online
advertisements. Thats why the study aims to see the factors of online advertisement affecting
consumer behavior. The variables under study include independent saray likhnay and dependent
saray likhnay.
1.2 Managerial Concerns
The response rate of online advertisement, in Pakistan is very low. As the concept is new
and the people are not aware of the actual benefits of it therefore, they prefer not to use it.
Moreover, there is the misconception of security issues; sharing of personal information on the
internet including the credit card details and etc. the marketers, in Pakistan, are still unable to
evoke a positive response from the consumers and they are unable to alter the consumer response
significantly, through online advertisements. Many people do not even have internet access,
especially in the remote areas of the country. These people cannot be targeted through online
advertisements. Therefore, in Pakistan, the online advertisers are able to cater only a limited
amount of their segment market as a result the consumer is not showing desired behavior
towards the products. This has even led to decline in sales of many products which are sold and
advertised online.
1.3 Study Objectives:
To identify the factors which can lead to a desired consumer response through online
advertisements
To analyze the factors which can lead to a specific consumer response or behavior
To identify all those factors which are leading to a low response rate from the consumers
towards the online advertisements

To carefully study the changing trends in consumer behavior
1.4 Scope of the study:

Consumer Behavior:
1. What is the relationship between consumer behavior and brand image?
2. What is the relationship between consumer behavior and word of mouth?
3. What is the relationship between consumer behavior and brand awareness?
4. What is the relationship between consumer behavior and privacy?
5. What is the relationship between consumer behavior and online scams?
6. What is the relationship between consumer behavior and internet usage?
7. What is the relationship between consumer behavior and globalization?
8. What is the relationship between consumer behavior and urbanization?
9. What is the relationship between consumer behavior and technology?
10. What is the relationship between consumer behavior and ad content?
11. What is the relationship between consumer behavior and accessibility?
Brand Exposure:
12. What is the relationship between brand exposure and brand image?
13. What is the relationship between brand exposure and word of mouth?
14. What is the relationship between brand exposure and brand awareness?
15. What is the relationship between brand exposure and privacy?
16. What is the relationship between brand exposure and online scams?
17. What is the relationship between brand exposure and internet usage?
18. What is the relationship between brand exposure and globalization?
19. What is the relationship between brand exposure and urbanization?
20. What is the relationship between brand exposure and technology?
21. What is the relationship between brand exposure and ad content?
22. What is the relationship between brand exposure and accessibility?
Consumer Willingness:
23. What is the relationship between consumer willingness and brand image?
24. What is the relationship between consumer willingness and word of mouth?
25. What is the relationship between consumer willingness and brand awareness?
26. What is the relationship between consumer willingness and privacy?
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27. What is the relationship between consumer willingness and online scams?
28. What is the relationship between consumer willingness and internet usage?
29. What is the relationship between consumer willingness and globalization?
30. What is the relationship between consumer willingness and urbanization?
31. What is the relationship between consumer willingness and technology?
32. What is the relationship between consumer willingness and ad content?
33. What is the relationship between consumer willingness and accessibility?
Assumption of the study:
All the respondents sincerely filled the questionnaire

The survey conducted is free from all sorts of biases.
The respondents fully understood the content of the questionnaires
1.5 Contributions:
Many companies which are eager to shift their operations online, in Pakistan would be
benefited from this research as they would be able to analyze those factors which are
contributing to low consumer response. An insight into the consumers mind would be gathered
through the research which would facilitate the companies to carry out their operation and
position their brands appropriately. The research would even aid the companies to select a
feasible advertisements and distribution channel for its different products according to the
preferences of the consumers. In this way the company would not incur losses and would be able
to cater the entire segmented market through feasible advertisement mediums. Online
advertisement is gaining popularity with each passing day and the research would aid in
analyzing the trends of the existing market. The research would aid in observing the trends of the
current globalized world.
1.6 Research in Pakistan:
The topic regarding employee motivation and their absenteeism is very common in
Pakistan and innumerable researchers have spent a lot of time in studying employee behavior
11
towards work and management. As the world is getting increasingly industrialized, Pakistan has
also joined the race by improving its work output and efficiency. But various researches clearly
indicate that within Pakistan, many variables play a major role in shaping up the employees
behavior towards work. Most of the variables have been covered by the prior researchers
concluding that culture and believes play a vital role in molding employee behavior.
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1.7 Definitions of major terms:

Globalization:
Global expansion and economic migration is called globalization (Yoganandan G, 2010). It
incorporates the freedom of market drivers and do not include any physical barriers between
countries.
Urbanization:
The increase in the population of the cities as compared to villages or remote areas is called
urbanization (Akhmat, Bochun, 2010). It involves the migration from rural to urban societies.
Brand image:
Those attributes of a brand which are weighted through its reputation are classified ad the image
of the brand (Akin, 2011). Brand image aids in developing brand differentiation (Xue et al.,
2007).
Brand awareness:
Brand awareness is the knowledge about a certain brand and its function and is popularly evoked
through repetitive exposure to the brand or celebrity endorsement (Cholinsk, 2012)
Word of mouth:
Word of mouth is the process of sharing information about a brand in an informal way (Brown,
1999). Its also classified as an advice from one person to another.
13
Accessibility:
Accessibility is basically defined by two major factors; the ability to reach the target audience
and the motivation to reach (Mark S. Witter, 1993).
Technology:
Technology can be of various types these days but consumers prefer user-friendly technology
which aids them in their work. Technology must be easy to use by everyone (Zhu, 2002).
Internet usage:
Internet has become a major interactive tool and a large number of people are using it these days
(Taheri, 2011). The frequency of using internet is regarded as internet usage.
Privacy:
The defense of ones personal items and data is regarded as privacy and is a major factor in the
internet marketing (Shen, 2002).
Internet scams:
Internet scams may involve the deliberate misinterpretation of the truth (Ellison, 2007). It even
involves the hackers breaking into your system and stealing important data (Drennan, Mort, &
Previte, 2006).
14
Ad content:
Ad content incorporate all the visual features and the information provided within it. The ad
content must be persuasive so that consumers could buy the product or service that has been
offered (Ansari, 2011).
15
Chapter 2: Literature Review

The literature review has been written by explaining the dependent variable first and then
moving further by fully describing the independent variables and their effect on the dependent
variable.
Online advertisement is basically regarded as a paid form of communication tool
delivered by a known sponsor (Curran, 2002). There are innumerable factors that can be used to
affect the consumer behavior when it comes to online advertisements. Some of those describes
below are :
Consumer behavior:
Online consumer buying behavior has been recently developed and studied with the
adoption of the new trends and business styles (Langerek, 2001). The consumer attitude towards
online shopping must be carefully observed in order to depict their response and behavior
regarding the online purchase of different products (Coney, 2001). The technology has become
so advance that consumers are provided with different options of selecting online products and
choosing them and then ordering them according to their own will (Shim et al., 2001).
online advertisement is also effecting brand perception People are becoming more aware of
the technological trends and the brand exposure. Brand exposure is directly related with brand
awareness (Langer, 2007). People these days are very particular regarding their privacy and they
prefer their privacy over the price and thus are willing to pay more to have privacy (Drennan, et
al., 2006). Moreover, the usage rate of internet is also very important when it comes to online
16
advertisements (Drennan, et al., 2006). The rate of usage is extremely important as it determines
the frequency of exposure of the ads which are shown online (Spears and Singh, 2004). With the
advancement in technology, people are adopting the new trends of online shopping and
advertisements (Shim et al., 2001).
Consumer involvement is directly related with consumer willingness and people who are
involved with a product or brand develop a close association with the brand and are willing to
buy it (Taylor, 2000). An attractive advertisement can highly effect costumer willingness to buy a
certain product.. (Kiesler, 2000). The commitment and believes related to the product are either
negatively or positively related with the willingness to buy a particular product (Kiesler, 2000).
Brand image:
Brand image is one of the most crucial factors that is affecting the brand exposure and their
response towards the online advertisements and buying (Eisend & Langer, 2007). The brand
image is the most common form of differentiating point within the products that are in
competition. People can weigh the attributes of the products or service through the brand image
that it holds. Brand image is related with the reputation of the brand (Eisend & Langer, 2007).
There is a direct relation between consumer willingness and brand image
Brand image cash on the emotional attributes and thus facilitates in altering brand exposure
to adopt new commodities. Final purchase decision also depends on the brand image to a certain
extend. Therefore, an impressive and renowned brad image can provide the firm a competitive
edge over its competitors (Bykyavuz, 2008). Brand exposure and brand image have a
significant relation
17
Word of mouth:
Word of mouth is extensively used by the marketers to create and evoke brand value
among the consumers (Bykyavuz, 2008). Brand awareness is majorly created through word of
mouth as the consumers share their product experience with each other and it results in product
exposure. Product exposure has a significant relation with word of mouth
Profitable customer retention can be easily enhanced through word of mouth as it
provides a medium to transfer information and knowledge about the product (Teradata, 2004).
Word of mouth basically depicts satisfaction-profit relationship for any firm or brand (Sderlund
& Rosengren, 2007). Consumer behavior and consumer willingness are significantly affected by
word of mouth.
Urbanization:
Urbanization is one of the most critical research issues these days and has a significant
impact brand exposure (Ma, Lian, 2011). Economic and social development is directed linked to
urbanization and therefore brand exposure can also be directly related to urbanization (Ma, Lian,
2011). Urbanization is a major factor which can lead to development of the technology and its
acceptance as well (Eze, 2002). Brand exposure increase with respect to urbanization thus they
have a positive relation.
The increasing population has made it incumbent on the marketers to expand on global
basis to cater to the needs of their mass market (Ma, 2011). The rapid increase in the population
has resulted in extreme traffic and time wastage and thus most of the people have started to adopt
the new medium of transaction, i.e. e-business (Eze, 2002). Most of the people prefer to shift this
18
population traffic towards the internet for their own ease and convenience (Meyer, 2004).
Consumer willingness and consumer behavior have a positive relation with urbanization
Technology:
Technology, these days is developing at a steady pace and marketers are continuously
coping up with the changing technology to stay up to date with the consumer preferences. The
internet is providing new ways to the people to stay in touch with the latest technology (Jensen,
2002). Technology can positively affect consumer behavior and consumer willingness
Therefore, these days online advertisements are gaining popularity in the world. The
internet has made it easy for the consumers to gain more information about different products
and their related features thus assisting in the evaluation of different products (Jensen, 2002).
Brand exposure and technology share a direct relation.
Ad content:
The content of the message is extremely important for an online ad to be persuasive
(Rodgers and Thorson, 2000; Kim et al., 2001). The part of the management is extremely
important for the success of online advertisements (Thorson, 2000). Consumer behavior and
willingness are significantly affected by ad content.
The ad content may include the information associated with the product or the service
provided and also visual effects as well. (Aksoy and zsomer,2007). The content of the ad can
be of various sorts depending on the nature of the product that is under consideration and the
target audience (Thorson, 2000). The ad content can be informative for those products which are
of high value and require high involvement on the part of the consumers. While, sometimes the
19
ads can have an emotional tint added to them in order to inculcate brand association within the
target audience (Rodger, 2000). There is a significant relation between ad content and brand
exposure
Internet usage:
In the current era, the world trade is expanding through globalization and the
communication and transactions are made easier through the excessive use of internet
(Ganapathy, 2002). More and more consumers are using the internet these days and are adopting
the recent trends on buying and selling (Ernst, 2004).
There has been a great increase in the trend of online transaction and e-business is
booming as more and more people are adopting it these days (Ranganathan, 2004).
Globalization:
The trend is changing as the people are readily adopting new and advanced technologies.
This has turned the world into a global village and people are adopting e-commerce with open
arms (Meyer, 2004). Globalization has assisted many marketers to advertise their product on a
world wide scale, expanding their territory at the same time by catering to masses (Ganapathy,
2004). Both B2B and B2C business is booming due to increasing and rapid globalization (Jones,
2004).
Globalization has reduced the cost of business and advertisements and it has even given a
negotiating edge to the consumers as they have more alternatives at their disposal through
globalization. In the current globalizing economy, the right communication with the target
audience is extremely important and thus marketers are trying to reach the audience with
20
different tools of communication and one such latest tool is the internet. The World Wide Web
has become the most common and famous communication and advertisement tool for the
marketers which is highly cost effective as well (Ganpathy, 2004). Apart from being cost
effective, the internet is a convenient medium of the consumers as well and thus they are also
adopting it with a high pace.
Privacy:
Privacy is a major concern these days and most of the consumers are willing to go a step
ahead for maintain their privacy (Young, 2004). There are many people who are still unwilling
adopt online shopping trends as they are very concerned with their privacy and security (Liu,
2004). Privacy is one of the major reasons which is holding back some people from adopting this
latest trend of e-commerce. Privacy has a significant effect on consumer behavior and their
willingness
Most of the websites these days have started to provide the consumers with log-in and
password facility to alleviate this fear of privacy invasion (Young, 2005). Therefore, the adoption
of e-business has shown a remarkable increase in the last few years.
Brand image:
Brand image is a differentiating point for any product which is hard for the competitors to
imitate and thus provides the marketers with a competitive advantage within the industry (Aksoy,
2007). Brand image aid to add the personality traits within a brand; adventurous, luxurious,
strong, etc, which the consumers can then relate with their own personalities (Buyukyavuz.
2008).
21
The perceived quality of a product also plays a very major role in devising its brand
image as consumers perceive products differently depending on their advertisements or other
mediums of information (Aaker, 2001).while devising a brand image suitable and appropriate
emotional motivators must be used to create brand association and evoke loyalty within the
consumers (Cop, 2007). Different abstract factors and symbols are used these days to be a part of
brand image, to which consumers could relate and remember (Langer, 2007).
Brand awareness:
Brand awareness plays an integral role in the success of a brand as people can only buy a
product if they are well aware of its existence (Langer, 2007). Proper recognition of a brand by
the target market holds immense importance for the marketers and they make sure that they make
the target audience remember the brand (Yoo, 2000). Brand awareness and exposure are directly
linked.
Brand awareness is important for the creation of brand identity and then brand
association (Dodds, 2000). Strong brand association and commitment leads to brand loyalty;
where the consumers prefer to buy the same brand again and again (Zeithaml, 2001). Perceived
quality plays a very major role in the making and shaping of a brand image. Brand awareness is
important and many companies are willing to pay a large sum of money on the brand
development. Product placement is extremely important for creating brand awareness (Keller,
2002). Through many years the researcher have been using product placement as a medium for
evaluating the brand awareness (Aaker, 2000). Product placement in the outlets is important to
manage as most of the consumers are unaware of a product because they have never seen it in the
market and thus they cannot try it and purchase it.
22
Internet scams:
But internet scams have gained immense power as hackers are able to invade the database
systems of the people causing harm and stealing the important data. The invasion of privacy is
the biggest threat that online users are facing these days and therefore people avoid sharing their
personal data online (Yu, 2009). Entering an e-market is extremely easy and thus anybody can be
on the internet and thus internet scams are extremely common (Shih, 2004).
Most of the people are a victim of online scam and thus they usually hesitate in using online
transactions (Shih, 2003). The scams are gaining more popularity these days and many people
are a victim of this rising trouble (Keeney, 2004). Many people come with fake names and fake
company profiles and indulge in fraudulent activities over the internet resulting in many scams
and thus many consumers avoid e-transactions. Scams have a direct relation with consumer
willingness and behavior.
Accessibility:
Product accessibility is highly import for its success as if a product is unavailable in the
market the consumers will not be able to consume it according to their own will. Accessibility
can have a very strong negative or positive impact on the image of the brand (Yoo, 2004). The
consumers are always willing to avail the convenient route and if a product is easily accessible to
them they would normally go for it rather than its substitutes (Jalal, 2006). Accessibility has a
significant effect on brand exposure.
Therefore, the ease of availability is highly important especially when it comes to the low
involvement products. In case of high involvement products the ease of accessibility seldom
23
count as the consumers are more quality conscious and are willing to but the best irrespective of
the ease of availability (Jalal, 2006). Accessibility has a significant effect on consumer
willingness and behavior.
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Chapter 3: Methodology & Analytical Choices

3.1 Research type:
Positivism has been applied in this research as the sample is structured in a way as to give
proper quantitative data regarding the objectives of online advertisement by the companies and
the issues of theft and privacy associated with it. Moreover, the data that has been collected
maintains an objective stance.
3.2 Data & Type of Research methods:
In order to support the philosophy of positivism, deductive approach has been used. The
approach follows the principles of cause and effect relationship and aids in determining and
analyzing the relationship between the dependent and the independent variables incorporated in
the research. The relationship between the variables is testified by the formulation of the
hypothesis, by following the deductive approach.
3.3 Research Hypothesis:

Brand exposure:
Ho1: There is no relationship between brand exposure and brand image
Ho2: There is no relationship between brand exposure and word of mouth
Ho3: There is no relationship between brand exposure and brand awareness
Ho4: There is no relationship between brand exposure and privacy
Ho5: There is no relationship between brand exposure and online scams
Ho6: There is no relationship between brand exposure and internet usage
Ho7: There is no relationship between brand exposure and globalization
Ho8: There is no relationship between brand exposure and urbanization
Ho9: There is no relationship between brand exposure and technology
Ho10: There is no relationship between brand exposure and ad content
Ho11: There is no relationship between brand exposure and accessibility
Consumer willingness:
25
Ho1: There is no relationship between consumer willingness and brand image

Ho2: There is no relationship between consumer willingness and word of mouth
Ho3: There is no relationship between consumer willingness and brand awareness
Ho4: There is no relationship between consumer willingness and privacy
Ho5: There is no relationship between consumer willingness and online scams
Ho6: There is no relationship between consumer willingness and internet usage
Ho7: There is no relationship between consumer willingness and globalization
Ho8: There is no relationship between consumer willingness and urbanization
Ho9: There is no relationship between consumer willingness and technology
Ho10: There is no relationship between consumer willingness and ad content
Ho11: There is no relationship between consumer willingness and accessibility
Consumer behavior:
Ho1: There is no relationship between consumer behavior and brand image
Ho2: There is no relationship between consumer behavior and word of mouth
Ho3: There is no relationship between consumer behavior and brand awareness
Ho4: There is no relationship between consumer behavior and privacy
Ho5: There is no relationship between consumer behavior and online scams
Ho6: There is no relationship between consumer behavior and internet usage
Ho7: There is no relationship between consumer behavior and globalization
Ho8: There is no relationship between consumer behavior and urbanization
Ho9: There is no relationship between consumer behavior and technology
Ho10: There is no relationship between consumer behavior and ad content
Ho11: There is no relationship between consumer behavior and accessibility
3.4: Theoretical Framework & Variables under Consideration:
3.4.1: Reference list of Variables under consideration:
Brand image is an extremely important factor affecting the consumer willingness as it aids
in establishing brand differentiation among competitors (Lee, 2012). It is used to differentiate
those products which are getting standardized day by day (Akin, 2011). Brand image aids in
increasing the brand image and trust of the consumer on the services of that the brand claims to
provide. Brand image is associated with emotional aspect of the consumer willingness
(Bykyavuz, 2008).
26
Privacy plays a major role in the present world when one gets involved in online
transactions and advertisements. Consumer willingness is closely associated with the respect or
disrespect of their privacy (Mooney, 2000). People are ready to spend more they are guaranteed
privacy of their personal information and thus the marketers are cashing on this aspect of
consumer willingness.
Accessibility is basically the ease with which the consumers can reach the product and
service and avail their benefits. Ease of accessibility is extremely important for evoking a desired
consumer response (Webster, 2005). People prefer buying and using those products which are
easily accessible in the market or which are at a feasible location (Hsu, 2005).
Brand awareness is a measure of the information that a consumer has about the brand and
its very important as it can be used as a differentiating point (Kotler, 1965). Its the repeated
exposure of a brand with the aid of audio or visual cues and even in the form of promotion.
Globalization is regarded as a biggest opportunity on which the marketers are cashing on
as the expansion f the economy as boosted up trade and business. . Moreover the flow of
information and technology becomes borderless. It is leading the world to a new economic order
(Yoganandan G, 2010).
Urbanization has also opened new doors for the marketers as it has increased their market
segment to a large extend. Planning and productive employment of resources and finance aids in
rapid urbanization which then in return affect consumer willingness (Eric,Shouyu, Qin, 2010).
Words of mouth is regarded as a vital component affecting the consumer willingness and their
buying decision. Word of mouth is extensively used by the marketers to create and evoke brand
27
value among the consumers (Heskett et al., 1994). Word of mouth basically depicts satisfactionprofit relationship for any firm or brand (Sderlund & Rosengren, 2007).
Internet usage is dependent on the availability of the internet and the occupation of the people as
well. Some people opt for vocations which involves extensive internet usage. Others just use it
for the sake of leisure and thus the level of exposure to the online ads also depends on the
frequency of internet usage.
Internet scams are a major threat to the online users. These scams involve online thefts
and even hacking as well (Robert and Fox, 1999). People prefer those online sites which are free
of any form of scams.
Technology, these days is developing at a steady pace and marketers are continuously
coping up with the changing technology to stay up to date with the consumer preferences. The
internet is providing new ways to the people to stay in touch with the latest technology
(Schwartz, 1998). Therefore, these days online advertisements are gaining popularity in the
world.
The content of the ad is the most important tool to persuade the consumers and to
stimulate the desired consumer willingness. The content may include different visual ad flash
elements and information that the ad is delivering (Zhu, 2002).
28
3.4.2: Theoretical Framework

The framework shows the relationship between the three dependent variables; brand
exposure, consumer willingness and consumer behavior with the independent variables which
includes word of mouth, brand image, brand awareness, urbanization, globalization, ad content,
privacy, internet scams and accessibility.
29
Fig: 1 Theoretical Framework
Word of
mouth
Brand
Image
Brand image,
Brand
Awareness
Consumer
behavior
Urbanizati
on
Brand Exposure
Globalizati
on
Ad Content
Consumer
willingness
Privacy
Internet
Scams
Internet
usage
Accessibil
ity
Technolog
y
30
3.5: Information Gathering & Sampling:

3.5.1: Survey Design:
Surveys are used to gather data regarding the factors affecting online advertisement and
the issues associated with theft and privacy. The surveys are specifically designed in a way to
gather all the information appropriate to address all the factors affecting the dependent variables,
through properly structured questionnaires. The questionnaires are presented to the respondents
so that desired information could be gathered and used for statistical analysis.
3.5.2: Population and Planned Sample
Cross-functional approach has been used to gather data from all the respondents with a
single time frame. The data is not updated from time to time after it has been collected once.
Moreover, multi-method has been adopted for gathering data for both quantitative and qualitative
analysis.
3.5.3: Sampling size consideration:
Stratified sampling is done on the basis of those people who use internet and are able to
view online ads. Moreover, the managers would also be questioned regarding the research
objectives. A sample of 100 people has been taken to justify the research objectives. People from
different areas would be chosen randomly from the strata.
Fig: 2 Sampling
Consumers
Regular users
50
less frequent users

50
31
3.5.4: Choice of Sampling Techniques
Stratified sampling has been used to divide the sample into two groups on the basis of their use
of internet. The two strata are: regular users and less frequent users of the internet.
3.5.5 Questionnaire development:
Table 1: Questionnaire Development
Variable
Creator
Year
No. of
Brand exposure
Consumer willingness
Consumer behavior
Globalization
Internet usage
Urbanization
Ad content
Privacy
Internet scams
Technology
Brand image
Brand awareness
Word of mouth
Accessibility
Wang
Morton & Risso
Yoo & Donthu
Hansen &Jensen
Hansen &Jensen
Poel & Donnell
Ranganathan & Ganapathy
Im, Workman & John
Kim
Yoo, Donthu
Hong & Ha
Im, Workman & John
2010
2005
2001
2004
2004
2009
2001
2001
2001
2004
2005
2000
2006
2004
items
5
4
4
3
4
4
4
3
4
4
3
4
3
3
32
Table 2: Constructive & Operative definitions

Variables
Constructive definition
The amount of information that the consumer
Brand exposure
holds regarding a brand and its attributes and its

existence
Operational definition
The mean of item 1-5 is measured on
a 5 pointer scale
1= strongly disagree
5= strongly agree
The mean of item 6-9 is measured on
Consumer
The preference of the consumers and their
a 5 pointer scale
willingness
likelihood of buying one product over the other.
5= strongly agree
The mean of item 10-13 is measured
Consumer behavior
The behavior of the consumers exhibited
on a 5 pointer scale
towards the product and its purchase
5= strongly agree
Globalization
Global expansion and economic migration is
called globalization
5= strongly agree
The frequency of using internet is regarded as

Internet usage
internet usage.
compared to villages or remote areas is called

urbanization
Ad content

5= strongly agree
Ad content incorporate all the visual features

and the information provided within it.
The defense of ones personal items and data is

Privacy
5= strongly agree
The increase in the population of the cities as

Urbanization
regarded as privacy and is a major factor in the

internet marketing
5= strongly agree
5= strongly agree
33

Internet scam
Internet scams may involve the deliberate
misinterpretation of the truth
5= strongly agree

Technology
Technology can be of various types these days
but consumers prefer user-friendly technology
5= strongly agree
which aids them in their work.

Brand image
Brand awareness
Those attributes of a brand which are weighted
through its reputation are classified ad the image
of the brand
5= strongly agree
Brand awareness is the knowledge about a
certain brand and its function and is popularly
evoked through repetitive exposure to the brand
or celebrity endorsement
5= strongly agree
Word of mouth
Word of mouth is the process of sharing

information about a brand in an informal way
5= strongly agree

Accessibility
Accessibility is basically defined by two major
factors; the ability to reach the target audience
and the motivation to reach
5= strongly agree
34
The mean of item of gender is

measured through
Demographics
It involves the gender, education, income and

other personal information about the consumers.
Male
Female and for income its
measured :
Higher level
Middle level
Lower level
Table 3: Average of variables

Reverse coded items
Independent variable
Ad content
Brand awareness
Accessibility
Internet usage
Word of mouth
Brand image
Average
Internet scams
Privacy
Globalization
Urbanization
Technology
Dependent variables
Average (Item 29, 30, 31, 32)

Average (Item 26, 27, 28)
Average (Item 21, 22, 23, 24)
Average (item 33, 34, 35, 36)
Brand exposure
Consumer behavior
Average (Item 1, 2, 3, 4, 5)
Average (Item 6, 7, 8, 9)
Average (Item 10, 11, 12, 13)
Average (Item 25, 26, 27, 28)

Average (Item 40, 41, 42, 43)
Average (Item 17, 18, 19, 20)
3.6 Data Analysis Tools & Techniques:

The different tests will be conducted for analysis which will include Correlation, T test, ANOVA
and Regression analysis through the use of SPSS software.
3.6.1: Multiple Linear Regressions:
Regression would be performed to deduce and testify the relationship between the variables and
regression equation would be made to exhibit that relationship.
35
Regression Equation 1: Consumer willingness = + (Brand Image) + (Brand Awareness)

+ (Accessibility) + (Globalization) + (Urbanization) + (Internet Usage) + (ad content) +
(Technology) + (Online scam) + (Privacy) + (Word of mouth)
Regression Equation 2: Consumer behavior = + (Brand Image) + (Brand Awareness) +
(Accessibility) + (Globalization) + (Urbanization) + (Internet Usage) + (ad content) +
Regression Equation 3: Brand exposure = + (Brand Image) + (Brand Awareness) +
(Accessibility) + (Globalization) + (Urbanization) + (Internet Usage) + (ad content) +
Apart from regression several other statistical tests and methods have been used to analyze the
quantitative data. These tests include t-test and ANOVA.
T-test
T-test is used for those questionnaires which have only two options in their answer, which
includes almost all the questions in the questionnaire which are associated with gender. It aids in
depicting the difference in mean of the two populations.
ANOVA
ANOVA is used for those questions which have multiple options in the answer which includes all
the questions associated with income groups, within the questionnaire. ANOVA specifies the
result of question for which more than two option shave been provided, like age group and
income group classification.
36
3.6.2: Parametric Tests of Significance:
The level of p-value that will be considered significant for all the tests, including ANOVA, T-test
and correlation is 0.01 to 0.1. All the p-values which lie between these ranges have been
considered significant.
3.6.3: Testing Significance of Repressors & of the overall equation:
The p-value which is significant for regression analysis lies in the range of 0.01 to 0.1. All the pvalues for regression analysis which lie outside this range have been considered insignificant.
37
Chapter 4: Analysis
The analysis interprets the relationships between the dependent and the independent variables;
consumer willingness, brand exposure, consumer behavior, privacy, scams, online internet usage,
advertisements, word of mouth, accessibility. The analysis has been conducted to depict and
interpret the relationship between the variables that have been used. The analysis starts with the
interpretation of the demographic variables and their frequency. It then further proceeds with the
correlation, then T test and then ANOVA. Eventually, the analysis moves to regression of the
dependent variable with all the independent variables.
4.1.1: Description of Demographics

Two variables, namely gender and income has been takes as demographics
Table 4: Frequency of Gender
Male
Frequency
62
Female
Total
Percent
62.0
38
38.0
100
100.0
In the above table it can be seen that out of 100 respondents 62% are males and 38% are females.
38
Table 5: Frequency of Income

Frequency
8
Percent
8.0
Rs. 60,000 100,000
28
28.0
Rs. 100,000 and more
64
64.0
100
100.0
Rs. 20,000 Rs. 60,000
Total
The income has been divided into three categories. It can be seen that 64% of the people lie in
the third income bracket and the remaining lie in the other two brackets.
Correlation:
Correlation has been conducted to analyze the relationship between all the variables which are under
consideration. The correlation also depicts the nature of relationship between the variable
Table 6: Correlations
Brand
exposure
Consumer
willingness
Consumer
behavior
Globalizatio
n
Internet
usage
Urbanizatio
n
Ad content
Privacy
Internet
scam
Technology
Brand
image
Brand
awareness
Word of
mouth
Brand
exposure
Consumer
willingness
Consumer
behavior
Globalization
Internet
usage
Urbanization
Ad
content
Privacy
Internet
scam
Technology
.118
.13(*)
.131(*)
.015
.064
-.070
.042
.117
-.059
.118
.286(**)
.077
.182(*)
.147(*)
.121
-.040
.152(*)
.131
.286(**)
.126
.030
.008
.087
.099
.131(*)
.077
.126
.136
.106
-.124
.043
.015
.182(**)
.030
.136(*)
Brand
image
Brand
awareness
Word of
mouth
Accessibility
-.088
-.025
.094
.079
.144(*)
-.187(**)
-.134(*)
.045
-.089
.038
.144(*)
.001
-.037
.147(*)
-.156(*)
.099
-.021
.099
-.050
.044
.054
.116
.125
-.148(*
)
.086
.004
.179(**)
.185(**)
.063
-.092
.064
.147(*)
.008
.106
.043
-.035
.085
-.046
.130
.001
-.012
.040
.066
-.070
.121
.087
-.124
.125
-.035
.054
.135(*)
.086
.134
-.034
-.085
-.037
.042
-.040
.099
.099
-.148
.085
.054
-.008
.122
.161(**)
.048
.096
.155
.117
.152
.038
-.021
.086
-.046
.135
-.008
.187(**)
.037
-.028
.089
.074
-.059
.144
.144
.099
.004
.130
.086
.122
.187(*)
.094
-.116
.140
.008
-.088
-.187(*)
.001
-.050
.179(*)
.001
.134
.161
.037
.094
.166(*)
.120
-.015
-.025
-.134
-.037
.044
.185(*)
-.012
-.034
.048
-.028
-.116
.166(*)
-.128
.029
.094
.045
.147
.054
.063
.040
-.085
.096
.089
.140
.120
-.128
-.035
*** Correlation is significant at the 0.01 level (1-tailed).

* * Correlation is significant at the 0.05 level (1-tailed).
* Correlation is significant at the 0.1level (1-tailed).
39
Brand exposure does not affect any of the variables taken into consideration as they all have a p
value greater than 0.05, showing that there is an insignificant relationship between brand
exposure and other variables. It has a negative relation with brand exposure and brand
awareness.
Consumer willingness has a very significant relationship with consumer behavior, having a p
value of 0.02 which is less than 0.01. The two stars on the Pearsons correlation value depict a
highly significant relationship at a level of 0.01. internet usage, brand image ad word of mouth
all have a significant relationship with consumer willingness as they all have a p value of less
than 5%. All the remaining variables have an insignificant relationship with consumer
willingness.
Consumer behavior is also positively related with consumer willingness, with a p value of 0.02.
All the other variables share an insignificant relationship with consumer behavior as they all
have a p value of less than 5%. Globalization has no significant effect on any of the variables
which are under consideration.
Internet usage have positive and significant relationship consumer willingness, brand image and
brand awareness. It has a negative relationship with privacy. Urbanization has an insignificant
relationship with all the variables. It also shares a negative relationship with ad contents.
Ad content has an insignificant relationship with all the variables which are under consideration.
It has a negative relationship with word of mouth, brand awareness and brand exposure. Privacy
has a negative relationship with consumer willingness and internet usage. It shares an
insignificant relationship with all the variables. Internet scams has a significant relationship with
brand image, having a p value of 0.031. It shares a negative relation with globalization,
urbanization and privacy.
Technology has a significant relationship with internet scams, at a p value of 0.031. Brand image
has a significant relationship with consumer willingness, internet usage and awareness as they all
have a p value which is less than 0.05. Brand awareness has a significant relationship with
internet usage and brand image. Word of mouth does not have a significant relationship with any
of the variables.
40
T test
T test would be performed to analyze the effect of gender difference on the variables.
Gender:
Table 7: Independent Samples Test for Gender
Levene's Test for Equality of Variances
Sig. (2Sig.
T
Df
tailed)
F
Brand exposure
Consumer
willingness
Consumer
behavior
Globalization
Internet usage
Urbanization
Ad content
Privacy
Equal
variances
assumed
Equal
variances not
assumed
Equal
variances
assumed
Equal
variances not
assumed
Equal
variances
assumed
Equal
variances not
assumed
Equal
variances
assumed
Equal
variances not
assumed
Equal
variances
assumed
Equal
variances not
assumed
Equal
variances
assumed
Equal
variances not
assumed
Equal
variances
assumed
Equal
variances not
assumed
Equal
variances
assumed
Equal
variances not
.063
2.192
.005
2.068
.070
.144
.746
.266
41
.802
.142
.942
.154
.792
.706
.390
.607
-.059
98
.953
-.059
77.507
.953
.500
98
.618
.476
66.451
.636
-.954
98
.342
-.954
78.501
.343
-.354
98
.724
-.334
64.889
.739
.343
98
.732
.347
81.213
.730
-.470
98
.640
-.475
81.332
.636
.461
98
.646
.474
85.288
.637
-.377
98
.707
-.371
74.432
.712
Internet scam
Technology
Brand image
Brand awareness
Word of mouth
Accessibility
assumed
Equal
variances
assumed
Equal
variances not
assumed
Equal
variances
assumed
Equal
variances not
assumed
Equal
variances
assumed
Equal
variances not
assumed
Equal
variances
assumed
Equal
variances not
assumed
Equal
variances
assumed
Equal
variances not
assumed
Equal
variances
assumed
Equal
variances not
assumed
.199
.017
1.248
.048
4.688
.386
.656
.896
.267
.828
.033
.536
1.414
98
.160
1.424
80.165
.158
-.221
98
.826
-.220
77.837
.826
-.750
98
.455
-.712
65.961
.479
-1.553
98
.124
-1.547
77.435
.126
-.919
98
.360
-.993
95.339
.323
-.211
98
.833
-.212
79.424
.833
There is no effect of the difference in gender on the variables which are under consideration as
the p value of all the variables is greater than 0.05.
ANOVA:
It is done to depict the significant difference in demographic variable items with respect ct to
variables
42
Income:
Table 8: ANOVA for Income
Brand exposure
Consumer behavior
Globalization
Internet usage
Urbanization
Ad content
Privacy
Internet scam
Technology
Brand image
Brand awareness
Word of mouth
Accessibility
Between Groups
Within Groups
Total
Between Groups
Within Groups
Total
Between Groups
Within Groups
Total
Between Groups
Within Groups
Total
Between Groups
Within Groups
Total
Between Groups
Within Groups
Total
Between Groups
Within Groups
Total
Between Groups
Within Groups
Total
Between Groups
Within Groups
Total
Between Groups
Within Groups
Total
Between Groups
Within Groups
Total
Between Groups
Within Groups
Total
Between Groups
Within Groups
Total
Between Groups
Within Groups
Total
Sum of
Squares
1.370
76.166
77.537
1.341
71.481
72.823
1.166
77.716
78.882
1.022
113.263
114.284
.296
72.685
72.982
3.083
112.182
115.265
.005
94.870
94.875
1.085
113.298
114.382
.324
83.078
83.402
.538
45.544
46.082
2.530
109.749
112.279
.616
49.095
49.712
.682
77.700
78.382
1.178
50.929
52.107
Df
2
97
99
2
97
99
2
97
99
2
97
99
2
97
99
2
97
99
2
97
99
2
97
99
2
97
99
2
97
99
2
97
99
2
97
99
2
97
99
2
97
99
43
Mean Square
.685
.785
F
.873
Sig.
.421
.671
.737
.910
.406
.583
.801
.728
.486
.511
1.168
.437
.647
.148
.749
.198
.821
1.541
1.157
1.333
.269
.003
.978
.003
.997
.542
1.168
.464
.630
.162
.856
.189
.828
.269
.470
.573
.566
1.265
1.131
1.118
.331
.308
.506
.609
.546
.341
.801
.426
.655
.589
.525
1.122
.330
There is no significant difference between the income groups with respect to almost all the
variables., as p- value for them is higher than 0.05.
Regression:
It is conducted to determine the significance of relationship between a dependent variable and all
the independent variable. In this case, there dependent variables are considered.
Brand exposure:
Brand exposure = + (Brand Image) + (Brand Awareness) + (Accessibility) +
(Globalization) + (Urbanization) + (Internet Usage) + (ad content) + (Technology) +
(Online scam) + (Privacy) + (Word of mouth)
Table 9: Brand Exposure
R Square
.068
F Value
.580
Sig.
.841
The value of R square is very small showing that only 6.8% of the dependent variable (Brand
exposure) is affected by the independent variables. Moreover the level of significance is also
greater than 0.05, suggesting that there is an insignificant relationship between the dependent and
the independent variables.
44
Table 10: Coefficients (Brand Exposure)

Unstandardized
Coefficients
Standardized
Coefficients
B
2.874
Std. Error
1.068
Globalization
.092
.089
Internet usage
.017
Urbanization
.050
-.043
Privacy
Internet scam
Sig.
B
2.691
Std. Error
.009
.112
1.038
.302
.115
.016
.145
.885
.086
.060
.575
.567
.098
-.048
-.443
.659
.037
.090
.045
.411
.682
.135
.103
.140
1.312
.193
Technology
-.147
.141
-.113
-1.038
.302
Brand image
-.073
.091
-.088
-.797
.427
Brand awareness
-.026
.136
-.021
-.192
.848
.088
.107
.089
.824
.412
.129
.047
.448
.656
(Constant)
Ad content
Word of mouth
Accessibility
.058
Dependent Variable: Brand exposure
Beta
The significance value for all the independent variables shown in the coefficient table 9 is greater
than 0.1, depicting that none of the independent variable has a significant relationship with the
dependent variable.
Consumer willingness:
Consumer willingness = + (Brand Image) + (Brand Awareness) + (Accessibility) +
45
Table 11: Consumer Willingness

R Square
.172
F Value
1.658
Sig.
.097
The value of R square is very small showing that only 17.2% of the dependent variable
(Consumer willingness) is affected by the independent variables. Moreover the level of
significance is also greater than 0.05, suggesting that there is an insignificant relationship
between the dependent and the independent variables. The p value is 0.097 which is greater than
0.05.
Table 12: Coefficients (Consumer willingness)

Unstandardized
Coefficients
Standardized
Coefficients
B
2.084
Std. Error
.976
Globalization
.035
.081
Internet usage
.201
.105
Urbanization
.106
Ad content
.094
Privacy
Sig.
B
2.136
Std. Error
.035
.043
.426
.671
.201
1.903
.060
.079
.134
1.351
.180
.089
.107
1.049
.297
.011
.083
.013
.130
.897
Internet scam
.112
.094
.120
1.191
.237
Technology
.121
.129
.096
.935
.352
Brand image
-.190
.083
-.236
-2.278
.025
Brand awareness
-.132
.124
-.109
-1.067
.289
.018
.098
.019
.185
.853
Accessibility
-.108
.118
Dependent Variable: Consumer willingness
-.091
-.915
.363
(Constant)
Word of mouth
Beta
Table 12 shows that internet usage has a significant relationship with the dependent variable as
suggested by its p-value of 0.060. The beta value of internet usage shows that with a 1% increase
46
in internet usage there is a 0.2% increase in the dependent variable as there is a positive
relationship between the two variables.
Brand image has a significant relationship with the dependent variable as suggested by its pvalue of 0.025. The beta value of brand image shows that with a 1% increase in brand image
there is a 0.2% decrease in the dependent variable as there is a inverse relationship between the
two variables.
Consumer behavior:
Consumer behavior = + (Brand Image) + (Brand Awareness) + (Accessibility) +
Table 13: Consumer Behavior

R Square
0.095
F Value
.842
Sig.
.599
The value of R square is very small showing that only 9.5% of the dependent variable
(Consumer behavior) is affected by the independent variables. Moreover the level of significance
is also greater than 0.05, suggesting that there is an insignificant relationship between the
dependent and the independent variables. The p value is 0.599 which is greater than 0.05.
47
Table 14: Coefficients (Consumer Behavior)

Unstandardized
Coefficients
Standardized
Coefficients
B
2.106
Std. Error
1.061
Globalization
.111
.088
Internet usage
-.003
Urbanization
-.013
Ad content
.089
Privacy
.078
Internet scam
Sig.
B
1.985
Std. Error
.050
.134
1.256
.212
.115
-.003
-.023
.982
.086
-.016
-.156
.877
.097
.098
.916
.362
.090
.094
.867
.388
.013
.103
.014
.131
.896
Technology
.129
.140
.099
.918
.361
Brand image
-.040
.091
-.047
-.436
.664
Brand awareness
-.003
.135
-.003
-.025
.980
.124
.106
.123
1.164
.248
.129
-.179
-1.717
.089
(Constant)
Word of mouth
Accessibility
-.221
Dependent Variable: consumer behavior
Beta
There is a significant relationship between accessibility and consumer behavior as shown by the
p-value of 0.089. The beta value shows that with a 1% increase in accessibility, the dependent
variable falls by 0.1% as both the variables share a negative relationship.
4.2: Testing of Null Hypothesis:

The null hypothesis would be tested on the basis of the regression results, with respect to all the
three dependent variables; consumer behavior, consumer willingness and brand exposure.
48
Chapter 5: Summary, Findings, Conclusions, Discussion and Future

Recommendations
5.1: Summary:
The study aims at finding the various factors which can contribute in the increase of
online media usage. Pakistan being a third world country is yet not familiar with the trend of
using internet for shopping or business transaction. E-business and online shopping is yet a new
concept in Pakistan. The study discusses the various variables which can contribute in affecting
the rate of e-business and trend of online shopping in Pakistan. Different businesses are getting
online in order to reduce their costs and to get global without large investments.
The literature discussed in the study sheds light on the various variables and their
relationship with the three dependent variables. The literature review focuses on the use of
internet and globalization. Brand exposure, consumer behavior and consumer willingness have
been discussed with respect to all the independent variables.
The study takes into consideration, a sample size of 100 respondents who are regular and
irregular users of internet. The sample size is tested through SPSS which is statistical analysis
software. Different hypothesis are deduced with respect to the three dependent variables.
5.2 Limitations of the study:
The analysis is conducted within the boundaries of Lahore and thus a small area has been
catered with respect to the analysis of consume responses. Another limitation is that the data has
been collected in February 2013 and was not improvised after that.
49
5.3 Findings:
The study depicts that from a sample of 100 people, 62% were males and 38% were
females. The findings also give a summary of the null hypothesis and the different analysis
conducted on the variables. On the basis of that analysis the following null hypothesis is
accepted or rejected.
Brand Exposure:
Ho1: There is no relationship between brand exposure and brand image
There is no relationship between brand exposure and brand image as depicted by the analysis
results. Therefore the null hypothesis will be accepted.
Ho2: There is no relationship between brand exposure and word of mouth
There is no relationship between brand exposure and word of mouth as depicted by the analysis
Ho3: There is no relationship between brand exposure and brand awareness
There is no relationship between brand exposure and brand awareness as depicted by the analysis
Ho4: There is no relationship between brand exposure and privacy
There is no relationship between brand exposure and privacy as depicted by the analysis results.
Therefore the null hypothesis will be accepted.
50
Ho5: There is no relationship between brand exposure and online scams

There is no relationship between brand exposure and online scams as depicted by the analysis
Ho6: There is no relationship between brand exposure and internet usage
There is no relationship between brand exposure and internet usage as depicted by the analysis
Ho7: There is no relationship between brand exposure and globalization
There is no relationship between brand exposure and globalization as depicted by the analysis
Ho8: There is no relationship between brand exposure and urbanization
There is no relationship between brand exposure and urbanization as depicted by the analysis
Ho9: There is no relationship between brand exposure and technology
There is no relationship between brand exposure and technology as depicted by the analysis
Ho10: There is no relationship between brand exposure and ad content
There is no relationship between brand exposure and ad content as depicted by the analysis
51
Ho11: There is no relationship between brand exposure and accessibility

There is no relationship between brand exposure and accessibility as depicted by the analysis
Consumer Willingness:
Ho11: There is no relationship between consumer willingness and brand image
There is no relationship between consumer willingness and brand image as depicted by the
analysis results. Therefore the null hypothesis will be accepted.
Ho12: There is no relationship between consumer willingness and word of mouth
There is no relationship between consumer willingness and word of mouth as depicted by the
Ho13: There is no relationship between consumer willingness and brand awareness
There is no relationship between consumer willingness and brand awareness as depicted by the
Ho14: There is no relationship between consumer willingness and privacy
There is no relationship between consumer willingness and privacy as depicted by the analysis
Ho15: There is no relationship between consumer willingness and online scams
There is no relationship between consumer willingness and online scams as depicted by the
52
Ho16: There is no relationship between consumer willingness and internet usage

There is no relationship between consumer willingness and internet usage as depicted by the
Ho17: There is no relationship between consumer willingness and globalization
There is no relationship between consumer willingness and globalization as depicted by the
Ho18: There is no relationship between consumer willingness and urbanization
There is no relationship between consumer willingness and urbanization as depicted by the
Ho19: There is no relationship between consumer willingness and technology
There is no relationship between consumer willingness and technology as depicted by the
Ho20: There is no relationship between consumer willingness and ad content
There is no relationship between consumer willingness and ad content as depicted by the analysis
results. Therefore the null hypothesis will be accepted
Ho21: There is no relationship between consumer willingness and accessibility
There is no relationship between consumer willingness and accessibility as depicted by the
53
Consumer Behavior:
Ho22: There is no relationship between consumer behavior and brand image
There is no relationship between consumer behavior and brand image as depicted by the analysis
Ho23: There is no relationship between consumer behavior and word of mouth
There is no relationship between consumer behavior and word of mouth as depicted by the
Ho24: There is no relationship between consumer behavior and brand awareness
There is no relationship between consumer behavior and brand awareness as depicted by the
Ho25: There is no relationship between consumer behavior and privacy
There is no relationship between consumer behavior and privacy as depicted by the analysis
Ho26: There is no relationship between consumer behavior and online scams
There is no relationship between consumer behavior and online scams as depicted by the analysis
Ho27: There is no relationship between consumer behavior and internet usage
There is no relationship between consumer behavior and internet usage as depicted by the
54
Ho28: There is no relationship between consumer behavior and globalization

There is no relationship between consumer behavior and globalization as depicted by the
Ho29: There is no relationship between consumer behavior and urbanization
There is no relationship between consumer behavior and urbanization as depicted by the analysis
Ho30: There is no relationship between consumer behavior and technology
There is no relationship between consumer behavior and technology as depicted by the analysis
Ho31: There is no relationship between consumer behavior and ad content
There is no relationship between consumer behavior and ad content as depicted by the analysis
Ho32: There is no relationship between consumer behavior and accessibility
There is no relationship between consumer behavior and accessibility as depicted by the analysis
5.4 Conclusion:
The study conducted aids in depicting the fact that consumer exposure, consumer
behavior and willingness are not affected by the independent variables which have been taken
into consideration. All the variables including accessibility, globalization, urbanization, internet
usage and all the others have an insignificant relationship with the dependent variables and have
55
no influence over them. All the respondents which were used to analysis and support the study
have exhibited behaviors and responses which show that none of the dependent variable is
affected by the independent variables.
5.5 Discussions:
The main purpose of the study is to analyze those variables which can significantly affect
online shopping trends in Pakistan. Globalization can have a significant effect on brand exposure
as globalization opens new doors of information for the people (Meyer, 2004). As the world is
getting global the behavior of the consumers is changing rapidly with respect to the use of
internet and media. But the study negates this theory and shows that there is an insignificant
relationship between globalization and consumer behavior. The study also shows that
globalization also has an insignificant relationship with the exposure of a brand.
Urbanization has a very direct impact on the behavior of the consumers and their
willingness towards a product (Ma, Lian, 2011).Urbanization has a direct impact on the exposure
of a brand as the greater the population, The more would be the information flow regarding the
products. But according to the findings of this study, there is an insignificant relationship
between the urbanization and consumer behavior and willingness, and even brand exposure.
Internet usage is largely dependent on the psychographics of the consumers, which may
include their life styles, behaviors and work. These days most of the people have such a busy life
that they are unable to spare time for internet (Ranganathan, 2004). But at the same time, internet
has become a basic necessity in the life of every individual. But the findings of the study
conclude that internet usage has an insignificant relationship with consumer behavior and brand
exposure.
56
5.6 Managerial Implications:
The managers of Vconnect must focus on variables other than those chosen in this study
to depict and analyze the trend of online shopping through brand exposure, consumer
behavior and consumer willingness.

The use of internet and online shopping should be researched in some other way to give
the desired result and to properly identify the problem.
5.7 Further recommendation:
The sample size should be increased which would improve the accuracy
More technically advanced and sensitive softwares can be used, including Amos.
The research can be geographically expanded, and more areas can be surveyed to gather
more data.
57
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62
APPENDIX 1
Questionnaire
The questionnaire has been specifically designed to understand the consumer willingness and their wants regarding
online buying. The information provided in this questionnaire would be confidential. Your sincere cooperation
would be appreciated. Circle the chosen answer.
1
Strongly
Disagree
2
Disagree
3
Neutral
4
Agree
5
Strongly
Agree
7
No
Opinion
1
3
4
5
Brand exposure (Wang, 2010)

Comparing with other brands which factors are present in your favorite online brand
Brand identity
1
2
3
4
5
Variety
1
2
3
4
5
Fashion trend
1
2
3
4
5
Social status
1
2
3
4
5
1
2
3
4
Consumer willingness (Morton & Risso, 2005)

I am a kind of person who gathers as much information as possible before making a purchase
It is hard for me to find time to shop online
I a\m afraid that I will be taken advantage of through the online buying process
I frequently use internet to attain information regarding the products I like
7
7
7
7
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
7
7
7
7
1
2
3
4
Consumer behavior (Yoo & Donthu, 2001)

If there is another brand as good as my brand I would still re purchase my old brand
I am aware of online brands
I know about online buying
I can name many brands which are sold online
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
7
7
7
7
1
2
3
Globalization (Hansen &Jensen, 2004)

In the next 5 years people will prefer shopping for grocery via internet
A large part of grocery shopping will be done online
Electronic medium of shopping is increasing with globalization
1
1
1
2
2
2
3 4
3 4
3 4
5
5
5
7
7
7
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
7
7
7
7
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
7
7
7
7
1
2
3
4
1
2
3
4
Internet usage (Hansen &Jensen, 2004)

In general electronic shopping yields few problems for me
Members of my family think that its good to shop online
My internet usage has increased over the last 5 years
I like to gather information online
Urbanization (Poel & Donnell, 2009)
Population has increased in the last 10 years
Traffic has increased in the last 5 years
Now a days people see more cars than 5 years back
Birth planning is getting more common today
63
1
2
3
4
Ad content (Ranganathan & Ganapathy, 2001)

In online ads I get information to compare across alternatives
Online ads provide information for decision making
Online ads has options to interact and communicate with the organization
Online ads provide complete information about the firm, services and products
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
7
7
7
7
1
2
3
Privacy (Ranganathan & Ganapathy, 2001)

Personal information is gathered in online transactions
There are various sites which demand personal information
I am hesitant in sharing information over the web
1
1
1
2
2
2
3 4
3 4
3 4
5
5
5
7
7
7
1
2
3
4
Internet scams (Ranganathan & Ganapathy, 2001)

There is an availability if secure modes for information transmission via internet
Non-online modes are also available for online shopping
I get opportunity to create secure accounts with login and password for shopping
I am concerned about the security of transactions over the internet
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
7
7
7
7
1
2
3
4
Technology (Im, Workman & John, 2004)

Online transactions are relevant to consumers needs and wants
The new features are suitable for customers desires
The new features are useful for the customers
The new features are appropriate for customers expectations
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
7
7
7
7
Brand Image (Kim, 2005)

Online brand offers a high value of service
3 4
Online brand is expensive
3 4
Online brand has a differentiated image from other brands
3 4
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
7
7
7
7
1
1
2
2
3 4
3 4
5
5
7
7
3 4
1
2
3
4
Brand Awareness (Yoo, Donthu, 2000)

I can recognize online brands among other competing brands
I am aware of online shopping
I can quickly recall online brands
I have difficulty in imagining online transactions in my mind
1
2
Word of mouth (Hong & Ha, 2006)

I trust specific word of mouth associated with my purchase
I am interested in information I receive through word of mouth communication
I can believe information I acquire through friends or colleagues
64
1
2
3
Accessibility (Im, Workman & John, 2004)

I can easily buy products online
Products are very easy to buy online
I can buy my favorite stuff anywhere I want to buy
1
1
1
2
2
2
3 4
3 4
3 4
Gender:
Male
Female
Income
Rs. 20,000 Rs. 60,000
Rs. 60,000 100,000
Age:
65
Rs. 100,000 and more
5
5
5
7
7
7
Questionnaire
The questionnaire has been specifically designed to understand the consumer willingness and their wants
regarding online buying. The information provided in this questionnaire would be confidential. Your sincere
cooperation would be appreciated. Circle the chosen answer
1
Strongly
Disagree
2
Disagree
3
Neutral
4
Agree
5
Strongly
Agree
7
No
Opinion
Comparing with other brands which factors aid in choosing your brand while shopping online
Brand identity
1
2
3
4
5
7
Variety
1
2
3
4
5
7
Fashion trend
1
2
3
4
5
7
Social status
1
2
3
4
5
7
I am a kind of person who gathers as much information as possible before making a purchase
It is hard for me to find time to shop online
I a\m afraid that I will be taken advantage of through the online buying process
I frequently use internet to attain information regarding the products I like
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
7
7
7
7
If there is another brand as good as my brand I would still re purchase my old brand
I am aware of online brands
I know about online buying
I can name many brands which are sold online
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
7
7
7
7
In the next 5 years people will prefer shopping for grocery via internet
A large part of grocery shopping will be done online
Electronic medium of shopping is increasing with globalization
1
1
1
2
2
2
3 4
3 4
3 4
5
5
5
7
7
7
In general electronic shopping yields few problems for me

Members of my family think that its good to shop online
My internet usage has increased over the last 5 years
I like to gather information online
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
7
7
7
7
Population has increased in the last 10 years

Traffic has increased in the last 5 years
Now days people see more cars than 5 years back
Birth planning is getting more common today
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
7
7
7
7
66
In online ads I get information to compare across alternatives

Online ads provide information for decision making
Online ads has options to interact and communicate with the organization
Online ads provide complete information about the firm, services and products
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
7
7
7
7
Personal information is gathered in online transactions

There are various sites which demand personal information
I am hesitant in sharing information over the web
1
1
1
2
2
2
3 4
3 4
3 4
5
5
5
7
7
7
There is an availability if secure modes for information transmission via internet

Non-online modes are also available for online shopping
I get opportunity to create secure accounts with login and password for shopping
I am concerned about the security of transactions over the internet
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
6
6
6
6
Online transactions are relevant to consumers needs and wants

The new features are suitable for customers desires
The new features are useful for the customers
The new features are appropriate for customers expectations
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
7
7
7
7
Online brand offers a high value of service
3 4
Online brand is expensive
3 4
Online brand has a differentiated image from other brands
3 4
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
7
7
7
7
I trust specific word of mouth associated with my purchase

I am interested in information I receive through word of mouth communication
1
1
2
2
3 4
3 4
5
5
7
7
I can believe information I acquire through friends or colleagues
3 4
I can easily buy products online

Products are very easy to buy online
I can buy my favorite stuff anywhere I want to buy
1
1
1
2
2
2
3 4
3 4
3 4
5
5
5
7
7
7
I can recognize online brands among other competing brands

I am aware of online shopping
I can quickly recall online brands
I have difficulty in imagining online transactions in my mind
Gender:
..
Income
Male
Female
Rs. 20,000 Rs. 60,000
Age:
Rs. 60,000 100,000
more
67
Rs. 100,000 and
7
7
7
7
68

Final Thesis

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Effect of online advertisements on Consumer Behavior

Thesis submitted to the Lahore School of Economics

Supervised by: Shamila Khan

Scope of the study:............................................................................................................9

Definitions of major terms:.............................................................................................12

Chapter 2: Literature Review.........................................................................................................15

4.2: Testing of Null Hypothesis:................................................................................................48

third-world country where development is taking place at a snails pace.

1.3 Study Objectives:

towards the online advertisements

1.4 Scope of the study:

All the respondents sincerely filled the questionnaire

1.7 Definitions of major terms:

Chapter 2: Literature Review

Chapter 3: Methodology & Analytical Choices

3.3 Research Hypothesis:

Ho1: There is no relationship between consumer willingness and brand image

3.4.2: Theoretical Framework

Fig: 1 Theoretical Framework

3.5: Information Gathering & Sampling:

less frequent users

3.5.4: Choice of Sampling Techniques

Table 2: Constructive & Operative definitions

holds regarding a brand and its attributes and its

The preference of the consumers and their

likelihood of buying one product over the other.

The behavior of the consumers exhibited

towards the product and its purchase

Global expansion and economic migration is

The frequency of using internet is regarded as

compared to villages or remote areas is called

The mean of item 21-24 is measured

Ad content incorporate all the visual features

The defense of ones personal items and data is

The increase in the population of the cities as

regarded as privacy and is a major factor in the

The mean of item 29-32 is measured

Internet scams may involve the deliberate

misinterpretation of the truth

The mean of item 33-36 is measured

Technology can be of various types these days

but consumers prefer user-friendly technology

which aids them in their work.

The mean of item 37-39 is measured

Those attributes of a brand which are weighted

through its reputation are classified ad the image

Brand awareness is the knowledge about a

The mean of item 40-43 is measured

certain brand and its function and is popularly

evoked through repetitive exposure to the brand

Word of mouth is the process of sharing

The mean of item 47-49 is measured

Accessibility is basically defined by two major

factors; the ability to reach the target audience

and the motivation to reach

The mean of item of gender is

It involves the gender, education, income and

Female and for income its

Table 3: Average of variables

Average (Item 29, 30, 31, 32)

Average (Item 25, 26, 27, 28)

3.6 Data Analysis Tools & Techniques:

Regression Equation 1: Consumer willingness = + (Brand Image) + (Brand Awareness)

3.6.2: Parametric Tests of Significance: