THE EFFECT OF ONLINE ADVERTISING IN SHOPPERS BEHAVIOR IN ENUGU METROPOLIS

CHAPTER ONE

INTRODUCTION

1.1 Background Of The Study

The exponential expansion of information technology has augmented the significance attributed to online advertising. The internet is without a doubt the most captivating of the information technology innovations that have gained significant media attention. Furthermore, the internet is rapidly becoming the preeminent information source due to its abundance of readily accessible data. In addition, online shoppers may alter their information-gathering strategies in order to capitalise on particular attributes of the internet (Peterson and Merino, 2020). Given the expanding lifespan of the internet and the rising prevalence of internet usage, particularly for shopping and searching, marketers encounter significant competition as they strive to comprehend consumer preferences and determine the most effective strategies to target them.Consumer purchasing behaviour is influenced by four distinct factors: psychological, social, personal, and cultural. While some studies have examined the cultural factor in isolation, the majority of research incorporates cultural factors into the category of social factors. In conducting this study, psychological factors will be considered, with a particular emphasis on consumer beliefs and attitudes. Early in the 20th century, online advertising gained significant traction in the United States. The expansion of internet advertising continues to attract both established and emerging direct marketers. Online stores possess the capability to perform numerous tasks akin to physical stores, including product display, special offer provision, customer order processing, and credit card transaction processing. Adding a shipping charge and completing the shipping procedure constitutes the only additional cost (Lambrecht, Tucker & Wiertz 2018). Initially, consumers obtained all of their information from the internet. They conducted online product searches and considered alternative options, but exhibited reluctance in making a purchase. However, as time has passed and consumer awareness has grown, they now prefer to shop online. At first, online purchases were limited to high-end products. Since becoming more informed, consumers now shop online. At first, online purchases were limited to high-end products. Such as cameras, notebooks, and so forth. Today, however, individuals residing in more developed nations frequently purchase foodstuffs via the internet (Jepsen 2019).The level of public receptiveness to online advertising in Nigeria is also relatively nascent. The public exhibits a certain degree of hesitancy towards making purchases online due to the escalating prevalence of online fraud and the consequent lack of complete trustworthiness of websites (Erskine 2022).

Numerous studies conducted in the past have demonstrated that the mean individual views in excess of 40,000 commercial advertisements annually, a substantial number. Certain corporations, including AT&T and Procter & Gamble, can spend as much as $4 billion annually on advertising. The official definition of advertising is a marketer-funded, impersonal, one-way mass communication regarding a product or service. The promotional combination of a marketing plan comprises advertising, public relations, sales promotion, and personal selling, all of which are vital components (Peterson & Merino 2020). Advertising is pervasive and constantly communicates with consumers. The expenditures of businesses on advertising are astounding. Additionally, advertising contributes significantly to the growth of sales and market share.Generally, to maintain their market share and ensure that their company and its products remain prominent in the minds of consumers, the majority of businesses must invest a substantial amount of money in advertising. Without doing so, competitors will be able to steal a portion of their sales and market share (Peterson & Merino 2020). Historically, lesser or newer companies in terms of market share have been required to allocate a greater budget towards advertising compared to their larger competitors. This is due to a phenomenon known as the advertising response function. Advertising, in its capacity as a promotional strategy, plays a pivotal role in generating product awareness among prospective consumers, thereby influencing their ultimate purchasing behaviour. Public relations, advertising, and sales promotion are forms of mass communication that marketers have at their disposal. Audiences are influenced by advertising across all platforms; however, the internet is currently emerging as one of the most potent advertising platforms due to its widespread reach. It has the capacity to not only affect an individual's attitude, but also his conduct, way of life, and public perception; over time, it can even shape the national culture (Latif and Abideen 2019). 

As the ultimate consumers of the goods, consumers serve as the driving force behind the production cycle. Consumers are of utmost importance to the economic system of any nation; therefore, in the absence of effective demand for produced products, that nation will inevitably encounter crises. Cohen (2020) defines advertising as a commercial endeavour that utilises innovative strategies to construct persuasive communication across mass media platforms. Its purpose is to promote goods, services, and concepts in a way that aligns with the advertiser's goals, ensures consumer contentment, and contributes to the advancement of social and economic well-being. Powell (2020).Advertising fulfils three primary objectives, as delineated in Cohen's definition: to augment firm sales, to ensure that consumers receive a substantial array of services, and to promote the social and economic well-being of society. Therefore, advertising exerts a stimulating impact on consumer purchasing behaviour. 

1.2     Statement Of The Problem

As the internet ages and more people begin to use it for shopping and searching, internet advertising, which has become increasingly prevalent among businesses in recent years due to its greater accessibility and scope of reach compared to traditional media, appears to be the most recent method of advertising.According to Jepsen (2019), 

Presently, the issue is whether or not internet advertising is significantly more effective than traditional media. Do consumers make purchases as a result of online advertising? What additional variables impact individuals' perception of advertisements? 

1.3 Objectives of the Study

The main objective of this study is to investigate the effect of online advertising in shoppers behavior in Enugu metropolis. Other specific objectives are to:

Find out the extent online advertising has a significant influence on shoppers behavior in Enugu metropolis.

Ascertain whether online advertising increases shoppers awareness in Enugu metropolis.

Investigate whether online advertising has a significant impact on shoppers purchase decision.

Ascertain whether  online advertising has a significant impact on shoppers consumption pattern in Enugu metropolis.

1.4 Research Questions

The research will seek to answer the following questions:

What is the extent online advertising has a significant influence on shoppers behavior in Enugu metropolis?

Does online advertising increases shoppers awareness in Enugu metropolis?

Does online advertising has a significant impact on shoppers purchase decision?

Does online advertising has a significant impact on shoppers consumption pattern in Enugu metropolis?

 1.5 Research Hypothesis

Ho: Online advertising has no significant effect on shoppers behavior in Enugu metropolis.

Ha: Online advertising has a significant effect on shoppers behavior in Enugu metropolis.

1.6    Significance of the Study

The study charge benefit marketers, businesses, government and academician. This study will inform marketers on the consumer preference of the advertising media and whether using e-advertising would be effective in reaching and increasing awareness of the audience. Before adapting marketing practices to the internet, it is imperative to understand the characteristics of the online customers towards advertising as would be revealed by the study. The internet has grown in popularity as an advertising medium because, among other things, it allows 24-hour interactivity between the advertiser and customers. It is important for the local business to look into E-advertising as more consumers turn to the internet for their purchasing. A small business that can offer online purchasing may be able to tap into this customer base. The government from this study would understand the value of E- advertising and its influence on consumer decisions which ultimately impacts electronic commerce/trade, and therefore would effectively regulate how internet advertising is delivered by acting rationally on laws that would restrict data usage, creating an ambient environment and availing resources to internet providing companies and at the same time safe guiding the internet of consumers. For scholars and academic researchers, the current study form a basis upon which future research on E-adverting may be established. The findings may be resourceful in providing viable information to academicians. Researchers and consumers on various concepts related to internet advertising.

1.7 Scope of the Study

This study focuses on the effect of online advertising in shoppers behavior in Enugu metropolis. However the study will be delimited to Enugu metropolis.

1.8 Limitations Of The Study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. However, the researcher were able to manage these just to ensure the success of this study.

Moreover, the case study method utilized in the study posed some challenges to the investigator including the possibility of biases and poor judgment of issues. However, the investigator relied on respect for the general principles of procedures, justice, fairness, objectivity in observation and recording, and weighing of evidence to overcome the challenges.

1.9 Definition of Terms

Online Advertising: Any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor which is placed on a network formed by co-operative inter-connection of networks.

Consumer Behaviour: The response of consumer having been exposed to online advertising, in terms of taken on whether or not the act on the content of the message.