Impact Of Advertisements On Consumers With Respect To E-Commerce Industry

Background – Literature Review

Discuss the impact of advertisements on consumers with respect to E-Commerce Industry.
 

Much the same as other direct publicizing stations, for instance, tele-vision and files, Internet is in like manner transforming into a noteworthy advancing station. The web gives natural shopping channel, which is not restricted by time and land condition. Likewise, it supports a variety of different alternatives to approach expansive retailing practices over Internet. Like publicizing the things in ordinary business area, relative with respect to Internet, things or organizations are moreover use to be showcased. Various forefront merchants and affiliations have built up their pages to progress or market their things and organizations over general Web.

In the recent years there has been a boom in the number of startups operating within the country. Thus, this was a topic that interested all the members in our group. Further, marketing in startups is very different from marketing for a big firm. For starters one has limited resources. It is a difficult decision as to where the money should be spent. We have tried to answer some questions based on our survey like

• Should a startup focus on product development or product marketing?
• At what stage is it advisable for a startup to start pouring in money into marketing?
• How effective are the different marketing strategies on consumers?
• Has consumer acquisition increased due to the marketing efforts of the different start-ups? 

The key parameters we considered for filtering articles for literature review included ‘startups’, ‘marketing’, ‘internet startups’, ‘’, ‘Guerilla’, ‘Branding’ and ‘Strategies’. Since our research revolved around the red ocean marketing strategies for start-ups in India, these search parameters were found to be the most relevant. Further we also considered articles focused on articles giving us information on different types of marketing strategies in different scenarios. This gave us a holistic view of the various researches conducted on children.

Citation/title Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Sample	Environment	Method	Findings/conclusion	Gaps/limitations
Haereid, Mari and Indregard, Solveig (2015). Guerrilla Marketing: A low-cost strategy for startups	12 in-depth interviews of marketing agency employees on 6 case studies.	Interviewee’s Offices	I1.nductive, Deductive Analysis. 2.Six cases are explored in order to properly understand the phenomenon and to analyse whether findings are applicable across cases( holistic case approach), 3.Cross-sectional study 4. In order to explore the phenomenon of guerrilla marketing in depth, a qualitative study has been	1. The phenomenon of guerrilla marketing and how start-ups can use the strategy in the promotion of their products have been explored 2. A framework for launching a guerrilla marketing strategy was developed 3. Through analysis of theoretical articles, additional literature, company interviews, documents and videos, both a detailed and holistic view of guerrilla marketing have been presented 4. Theoritical and practical implications of the study were presented 5. It would be interesting to study what factors, in addition to the elements explored in this study, that make campaigns unconventional. This may provide additional inspiration for startups creating an unconventional campaign 6. Besides the fact that startups tend to have limited financial resources, there may be other aspects of guerrilla marketing that make the strategy suitable for entrepreneur	1. Interesting findings from the empirical cases could have been exploited to a greater extent if the research field was narrowed down 2. The cases studied were chosen based on certain characteristics that complied with fundamental elements of guerrilla marketing. Additional elements of the campaigns that were not emphasized in theory were also evaluated, which may have colored the researchers’ perception of the phenomenon
Citation/title	Sample	Environment	Method	Findings/conclusion	Gaps/limitations
Managing complexity and unforeseeable uncertainty in start-up companies: An empirical study	58 start-ups in Shanghai	Online Survey	1)       Cross industry study 2)       140 start-ups were approached with a questionnaire of which 63 responded and 58 responses were usable 3)       Dependent variables: quantitative variables included liquidity ,profitability, and ROI. Qualitative measures tried to capture the ventures perception 4)       Independent variables: Used to measure the choice of strategy. Were not 0-1 variables	Novel startup endeavors are regularly unsafe as well as face unforeseeable instability (occasions that can’t in any way, shape or form be anticipated at the beginning) consolidated with multifaceted nature (various distinctive, perhaps collaborating, impacts). In this paper, we give prove that, under these circumstances, exemplary arranging and hazard administration strategies are not adequate. The administration group must broaden its scope of administration techniques and consider two extra methodologies for the parts of the activity that are helpless against unforeseeable instability: (1) selectionist trials, running a few parallel arrangement endeavors, of which stand out will be picked toward the end, and (2) experimentation realizing, where the first arrangement is perhaps totally relinquished and another arrangement created midcourse, as new data rises.	1)             Small example size 2)     Survivor inclination: The endeavors that were willing to take an interest were all still alive 3)             Questions like, what are the relative expenses of selectionism and realizing (which are not followed by the organizations) and advantages crosswise over various parts of the endeavor?, can be replied in future studies
Citation/title	Sample	Environment	Method	Findings/conclusion	Gaps/limitations
(2010) Brand new ventures? Insights on start-ups’ branding practices	CEOs and communication Managers of 15 companies	Interviewee’s Offices	Interviews with CEOs and communication Managers of 15 successful start-up companies	•       The paper sets up a diagram on the present practices and balanced of the brand building exercises decisions, and on the symbolic pitfalls in regards to marking of new pursuits. •      It recommends that youthful organizations ought not be compelled to contrast their marking methodologies with multinational firms and proposes a structure and key rules for start-up marking.	•       •                Given that this study concentrates particularly on Switzerland, the discoveries won’t not be completely relevant to various financial circumstances. All things considered breaking down the greatest new businesses of a solitary nation permits notable correlations of the methodologies towards marking inside the same environment. •         •       •            Another impediment is identified with the subjective technique utilized, which does not permit the speculation of the discoveries
Citation/title	Sample	Environment	Method	Findings/conclusion	Gaps/limitations
Survival strategies and characteristics of start-ups: an empirical study from the New Zealand IT industry	Nine entrepreneurs of start-up IT firms in New Zealand	Interviewee’s office	1)       Cross industry study 2)       Interview with nine entrepreneurs of start-up IT firms	The discoveries of this study demonstrate the significance of adjusting vital capacities with the acknowledged authoritative methodology (vital extension and movement design). All organizations took after the rule “spend just what you gain” and “occupied with exercises and a key extension that is inside its expertise and asset capacity levels”. Be that as it may, all organizations assembled their asset ability and aptitude levels, and thusly extended their 19 vital degree and action levels to make developing levels of all encompassing parity that showed steady, self-maintaining authoritative development levels.	1)             Any ramifications drawn from this examination ought to be went with alert. Making determinations about the qualities of IT start-up firms construct just in light of nine New Zealand start up IT firms is a procedure loaded with potential perils. 2)             The present study was based from a pioneers’ point of view. There is a requirement for a comparable study on a bigger example of business pioneers from start up IT organizations

From the literature review we had a solid methodology for administering the questionnaire. Further, we noted that most of the articles were aimed at finding a correlation between the marketing strategies used and the popularity of the startup. This was a clear gap which we tried to fill through our research. We will also try to figure out the probability of a marketing strategy being successful through Binary Logist Model. Through this we will try to analyze the magnitude and direction of the influence of marketing strategies on customer acquisition and retention.  

The following research objectives were kept in mind for our project.

• Do advertisements have an impact on choice of E-Commerce websites that people shop on?
• Does the increase in number of advertisements, ie the number of times it is displayed on television have an effect on the choice of e-commerce websites that people shop on?
• Does the increase in number of channels an advertisement is aired increase the likelihood that a person will choose a particular e-commerce website?
• Does the timing of advertisements affect choice of e-commerce websites?
• Does an attractive and catchy tagline affect the mindset of an average consumer to decide where he shops online?

Through our research, we seek to find quantitative data that answers the above questions 

H0: There is no impact of advertisements on e-commerce sales

H1: There is impact of advertisements on e-commerce sales 

Guerrilla Marketing: A Low-cost Strategy For Start-ups

The approach adopted was deductive approach, as the research is based on a hypothesis and we worked to check it. As this is a study of consumer behavior among children, descriptive process was chosen. Survey method was chosen for the study and MS Excel was used to prepare the questionnaire. The survey was conducted by personally asking the respondents. Since the survey involved children, due care was taken to ensure that they understood the purpose of the research, to preserve the identity of the respondents and to prevent misrepresentation of their responses. The complete analysis is based on quantitative data and IBM SPSS and Microsoft Excel are used for the study. 

We followed a quantitative research methodology for this project by using questionnaires. Since our study focused on marketing strategies for startups we prepared a questionnaire that would focus on how marketing strategies affect the behavior of consumers of these startups. We mainly focused on the age group of 20-30 as these are the major customers of internet based startups. We tried to analyze whether their buying behavior was affected by the marketing strategies used by these startups.

Also since the age group of our questionnaire was 20-30 we tried to keep the questionnaire as short and direct as possible. We kept the language unambiguous. We floated the survey online as this was the easiest way to get in touch with maximum people in this age group. 

The questionnaire focused on the following: 

• Age
• Gender
• Interest in ecommerce based start-ups
• Usage of Internet based start-ups
• Viewership of advertisements by these start-ups
• Effect of the advertisements on these consumers
• Whether the advertisements urged them to revisit these websites
• Effect of time of advert
• Effect of good tagline
• Effect of number of times the advertisement is viewed
• Effect of number of channels the advertisement is aired on 

The responses were obtained through a survey obtained online. Once the responses were collected simple statistical analysis were conducted, i.e. chi-squared test for variables identified as categorical variables and pair-wise t test for scale variables. The significant variables were identified from this set of tests. Additionally, a binary logit regression model was also built to understand the magnitude and direction of the influence of these significant variables on a probability that a brand becomes a children’s favorite brand. 

Profile of the Respondents

In terms of profile of the respondents, all the respondents were between 21- 32 years of age.

GENDER OF RESPONDENTS 

1. Do you like seeing ads of ecommerce websites on television? 

2. On a scale of 1 to 5, whether you open/buy from ecommerce websites?

3. On a scale of 1 to 5, if you would buy again from the website after viewing their advertisement? 

We had the below limitations while conducting the survey.

• Limited number of responses (30)
• A gender ratio of 80:20 among respondents
• A certain bias could have been generated in the results as responses were filled by directly asking the respondents, in our case children who might not particularly understood the question 

The following table shows the timeline for the whole Project to be completed.

Task Name	Start	End	Duration(Days)
Project Proposal	17-03-2016	31-03-2016	14
Literature Review	01-04-2016	10-04-2016	10
Data Collection	11-04-2016	11-05-2016	30
Data Analysis	12-05-2016	01-06-2016	20
Final Report Submission	02-06-2016	30-06-2016	29

The budget for the proposed research is around $4000 in order to complete this project within the time frame (30-06-16) as given in the Gantt chart. 

Purpose	Amt. Spent
Project Proposal	500
Literature Review	1000
Data Collection	2000
Data Analysis	500
Total	4000

Conclusions & Recommendations

It can be concluded from the test obtained that number of times an advertisement is seen and the whether the advertisement is comical and having a good jingle influence the children’s decision of selecting the favorite brand.

It can be recommended that:

1. Brands should spend on getting more number of advertisements, as the more the children see the advertisements, more the chance of the brand becoming a favorite
2. Brands should create advertisements with good jingle, as advertisement with a good jingle will lead to more brand affinity

Though it can also be concluded that comical advertisements hurt the chances of a brand being the most preferred brand, this result is a counter intuitive finding. As a result, it is recommended that this more research should be done before verifying this result as the current data contains too few data points to confirm this result. 

References 

1. Internet World Stats, “Internet Usage Statistics and Mar- keting Report,” Internet World Stats, 2012. 

1. World Bank, “World Bank Development Indicators,” World Bank, 2012.

1. A. Armstrong, “Principles of Marketing,” 13th Edition, Pearson, Newyork, 2010. 

1. B. Gerald Lohse, “Consumer Buying Behavior on the Internet: Findings from Panel Data,” Journal of Interac- tive Marketing, Vol. 14, No. 1, 2000, p. 15. 

1. Ravikumar, “A Study on Impact of Visual Media Ad- vertisements on Women Consumers Buying Behaviour in Chennai City,” International Journal of Multidisciplinary Research, Vol. 2, No. 2, 2012, pp. 78-89. 

1. Manchanda, “The Effect of Banner Advertising on In- ternet Purchasing,” American Marketing Association, Vol. 43, No. 1, 2006, pp. 98-108. 

1. “In today’s Paper,” The Wall Street Journal, B7, 27 July 2004.
2. Lohse, “Consumer Buying Behaviour on the Internet: Findings from Panel Data,” Journal of Interactive Mar- keting, Vol. 14, No. 1, 2000, p. 15.  

1. Grab Stats, “Grab Stats Stat Category Main,” Grab Stats, 2012. 

1. P. Tse, “A Hedonic Model for Effective Web Market- ing: An Empirical Examination,” Industrial Management and Data System, Vol. 105, No. 8, 2005, pp. 1039-1052. Rossi, P.E. and G.M. Allenby (2003), “Bayesian Statistics and Marketing,” Marketing Science, 22 (3), 304–329.