UNDERSTANDING THE INDIAN CONSUMERS' BELIEFS AND ATTITUDE TOWARD ONLINE ADVERTISING

Abstract

Advertisers these days are using newer mediums to advertise keeping up with the technological advancements that are happening. Advertisers have to be creative while designing advertisements and selecting the right medium of displaying them to the target audience. If the target market is the younger consumer segment, keeping pace with their changing consumer buying behavior is essential for businesses. With the increase in online users and the hours they spend on social networking sites, businesses have recognized the power of advertising online in terms of interactivity which includes shopping experiences, personalized selections, wide information and greater convenience. This study aims to understand the perceptions of the younger generation towards online advertisements including social media advertising. Four belief factors (i.e. information seeking, entertainment, credibility and irritation) were identified during literature review, which were significant predictors of attitude towards online advertising (ATOA). The questionnaire was the survey instrument to collect the data from a sample size of 172 respondents. Reliability analysis, factor analysis and regression analysis were done to analyze the collected data. From the results it was seen that Indian Internet users were responsive to advertising on the Internet and had both positive and negative perception of online advertising. However they formed positive beliefs regarding the informative aspect of online ads because it allows users to have access to product and service information without any hassle. Information was seen to be the strongest predictor of ATOA and the people who perceived online advertising to be informative were more likely to favor it. It was also seen that consumer’s found online ads entertaining and were able to grab their attention. With the marketplace being so clustered with advertisements vying for people’s attention the advertisement must be interesting and enjoyable enough to capture the attention to the viewer. Therefore, the creativity of online advertising can add value to a company’s products and services. Credibility was a major factor which added to their likeliness of perceiving online ads and it was found that only about 40% of the respondents found online ads credible. The rest of the respondents found them deceptive, half truths and accused of biasing consumers’ rational decision making by developing ads based on consumers’ vulnerability. Understanding the attitudes of consumers’, marketers can develop the right and suitable communication strategies for creating, changing and reinforcing positive attitudes towards online advertising. Marketers should target consumers who respond positively to online ads and with their help identify problems related to the negative beliefs about web advertising. This research study could provide useful insights to advertisers, marketers, managers, as well as the top management for using online advertising more effectively and efficiently in their marketing efforts.