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Chapter 7: How Online Advertising Affects Buyer Behavior

Chapter 7: How Online Advertising Affects Buyer Behavior. Payam Hanafizadeh and Mehdi Behboudi http :// www.igi-global.com/book/online-advertising-promotion/60769. USES AND GRATIFICATIONS.

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Chapter 7: How Online Advertising Affects Buyer Behavior

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  1. Chapter 7: • How Online Advertising Affects Buyer Behavior

  2. Payam Hanafizadeh and Mehdi Behboudi http://www.igi-global.com/book/online-advertising-promotion/60769

  3. USES AND GRATIFICATIONS The uses and gratification theory is a communicational approach based on psychology, which focuses on individual use and choice by asserting that different people can use mass media for very different purposes (Severin & Tankard, 1997). http://www.utwente.nl/cw/theorieenoverzicht/Theory%20clusters/Communication%20and%20Information%20Technology/Uses_and_Gratifications_Approach-1.doc/

  4. USES AND GRATIFICATIONS There are four concepts in the uses and gratification theory: motives, use, gratification and active user (Lin, 1999). http://wiki.uva.nl/fmg-web20/index.php/Uses_and_gratifications_benadering

  5. Applying the Uses and Gratifications Theory to the internet Korgaonkar and Wolin (1999) recognized 45 motivational observer variables for using the Internet and classified them into seven groups: social escapism, transactional security and privacy, interactive control, socialization, non-transactional privacy and economic motivation. http://primeessays.co.uk/essays/Communication/Uses-and-Gratifications-Theory-Applied-to.html

  6. Applying the Uses and Gratifications Theory to the internet They also reported that people use the internet based on one of three motives: searching information, entertainment and spending leisure time. http://www.tes.co.uk/teaching-resource/Uses-and-Gratification-theory-Worksheet-6188264/

  7. INTERACTIVITY Interaction allows users to participate in the process of persuasion by controlling the advertisements they see, accessing needed information and ordering at any time according to their personal needs and preferences (Hoffman & Novak, 1996). http://chi2013.acm.org/authors/call-for-participation/interactivity/

  8. INTERACTIVITY Internet interaction takes place either by "Human-human" and "Human-message" interaction. http://interactivitydigital.com/

  9. Modeling of Interactive Advertising This model has four basic sections based on the uses and gratifications theory: • Primary motives: the first motivating force before visiting a website • Duration of time at a website • Interactivity • Attitudes and purchase intention after visiting the website http://sweden.emc.com/services/consulting/business/offerings/interactive-advertising.htm

  10. Modeling of Interactive Advertising According to variables like attitude toward the brand, attitude toward the website and purchase intention, the three following effects are discussed in this model: • The effects of using Internet motives based on the extent of website exposure and the extent of interactivity on the website • The effects of interactivity on the effectiveness of the advertising • The casual relationship among advertising products http://www.flashtalking.com/uk/

  11. Modeling of Interactive Advertising Based on previous findings, the focus of the model is on the four primary motives of entertainment, convenience, information and social interaction. http://www.toprankblog.com/2011/07/online-marketing-media-mix/

  12. Rules of Netiquette in Internet Advertising According to Thomsen (1996), "Since there is no central authority, the users themselves have taken to policing the Internet. The advertiser has to live by these rules. Otherwise, they may be 'flamed', which is a nasty note containing threats and curses or in the worst case be boycotted"(p. 20). http://www.networketiquette.net/netiquette.htm

  13. Netiquette: A Prerequisite for Online Advertisements Netiquette and advertising: selecting areas for making right decisions (p. 129) Bricks and Clicks Mass advertising Corporate brand Area one Area two Non-principled Semi-direct selling Branding strategy Advertising strategy Appeal type Selling strategy Single brand Personalized advertising Area three Area four Direct selling Non-principled Internet-only

  14. GENDER DIFFERENCES IN BEHAVIOR, ATTITUDE, AND BELIEF The users' perception based on gender has three dimensions in advertising: • Use patterns • Online privacy concerns • Behaviors (Wolin & Korgaonkar, 2003). http://lessonbucket.com/representation/gender-in-advertising/

  15. GENDER DIFFERENCES IN BEHAVIOR, ATTITUDE, AND BELIEF Gender is a key variable in classifying the market, and there are some factors which should be taken into account when advertising as these factors are different for males and females: • Identifiability • Accessibility • Measurability • Responding to marketing mix factors • Profitability (Darly & Smith, 1995). http://smallbusiness.chron.com/gender-differences-within-workplace-10512.html

  16. GENDER DIFFERENCES IN BEHAVIOR, ATTITUDE, AND BELIEF Wolin and Korgaonkar (2003) showed that men perceived online advertisements as either profitable, enjoyable, or informative. • Men find Internet ads more enjoyable than magazine and newspaper ads. • Men find Internet ads more useful than magazine, newspaper and radio ads. • Men find Internet ads more informative than magazine, newspaper and radio ads.

  17. BEHAVIORAL DIFFERENCES IN TERMS OF INTERNET USAGE According to Wolin & Korgaonkar (2001), customers are classified as either heavy or light users. Users from the heavy group have some or all of the following characteristics: • Higher education • Higher revenue • Young age group • Professional business owners http://www.medscape.com/viewarticle/704888_2

  18. BEHAVIORAL DIFFERENCES IN TERMS OF INTERNET USAGE Also, to persuade light users to follow an advertisement, marketers must stress the informative and enjoyable nature of online advertising (Wolin & Korgaonkar, 2001). http://www.pewresearch.org/millennials/teen-internet-use-graphic/

  19. INTERACTIVE ADVERTISING MODEL (IAM) • The key items of the IAM model include customer-controlled and advertiser-controlled aspects with the customer-controlled aspect consisting of functions and the information process. http://wn12.com/display-advertising/interactive-advertising-model/

  20. INTERACTIVE ADVERTISING MODEL (IAM) So in the customer-controlled aspect, the general assumptions of the IAM are based on three features: • Information processing takes place in an interactive environment. • Users try to put themselves in a position in accordance with the environment and are considered experienced uses. • The model answers the questions of how and why to use the Internet, because human behavior reason is related to their cognitive attempts to solve problems.

  21. Customer-Controlled Aspect • Function • Internet Motives • Information Processing http://technet.microsoft.com/en-us/magazine/hh389788.aspx

  22. Advertiser-controlled Aspect The most important variables under the advertiser's control are structural elements like advertising types, advertising formats and advertising features. http://www.managementstudyguide.com/social-economic-aspects-advertising.htm

  23. Advertiser-controlled Aspect The first element, advertising type, is the first feature by which an ad can be rated. All ads in every media can be separated into five categories: • Products/services advertisement • Public Service Announcement (PSA) • Issue advertisement • Corporate advertisement • Political advertisement

  24. Advertiser-controlled Aspect Some Internet advertising formats include banners, pop-ups, sponsorships, interstitials and website. http://www.legolas-media.com/

  25. Advertising Features Thorson and Leavitt, (1986) divided features into objective and subjective. http://www.worldweb.com/advertise/features.html

  26. Advertising Features Bucy (1998) conducted a study of 496 well-known websites and recognized some common features of their online ads including animation, color and graphics. The issue of an advertising request is related to the rational or emotional appeal of the ad and the percentage of customer involvement with the product. http://www.mdt.mt.gov/business/oac/oac_features.shtml

  27. Advertising Features In relation to objective advertising structure on the web, some factors have been recognized which are useful for increasing user response rate: • Entertaining features • Content quality • Website navigators http://www.addynamo.com/en/advanced_advertising_features.cfm?event=advanced_advertising_features

  28. LIFESTYLE Numerous studies indicate that lifestyle is an important variable that influences the way users use the Internet for various activities (Schiffman et al., 2003; Kim et al., 2001). http://www.sheengate.co.uk/

  29. LIFESTYLE • Kim et al., (2001) investigated the lifestyles of Internet users and concluded that there are six general lifestyles that should be considered: innovative/ leader, imitator/ flatterer, serious buyer, sociable person, conservative/politeperson and family-oriented person. http://www.kent-lifestyle.co.uk/

  30. http://www.ukessays.com/essays/marketing/online-advertising-impact-on-consumer-purchase-behaviour-marketing-essay.phphttp://www.ukessays.com/essays/marketing/online-advertising-impact-on-consumer-purchase-behaviour-marketing-essay.php http://usa.publiboda.com/glossary-of-interactive-advertising-t-to-w.html The End Of Chapter 7 http://education-portal.com/academy/lesson/effects-of-advertising-on-consumer-buying-behavior.html

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