TABLE OF CONTENTS

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study
1.2 Statement of the Problem
1.3 Aim and Objectives
1.4 Significance of the Study
1.5 Scope of the Study
1.6 Operational Definition of Terms

CHAPTER TWO: LITERATURE REVIEW

2.1 Conceptual Literature Review
2.1.1 Concept of Internet Advertising
2.1.2 Key Internet Advertising Strategies
2.1.3 Concept of Consumer Behavior
2.1.4 Factors Influencing Consumer Behavior
2.1.5 Internet Advertising and Consumer Behavior
2.2 Theoretical Framework
2.2.1 Theory of Planned Behavior (TPB)
2.2.2 Technology Acceptance Model (TAM)
2.2.3 Stimulus-Response Model
2.2.4 Impulse Buying Theory (IBT)
2.2.5 Conspicuous Consumption Theory (CCT)
2.2.6 Diffusion of Innovation Theory (DOI)
2.3 Empirical Literature Review
2.4 Conceptual Framework

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Research Design
3.2 Population of the Study
3.3 Sample Size and Sampling Technique
3.4 Source of Data
3.5 Instrument for Data Collection
3.6 Method of Data Collection
3.7 Validity and Reliability of the Instrument
3.8 Method of Data Analysis
3.9 Ethical Considerations

REFERENCES

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 CHAPTER ONE

1.1 BACKGROUND OF THE STUDY

Internet has grown tremendously in both its applications and number of users due to its unique
characteristics of flexibility, interactivity, and personalization. The revolutionary change brought
forth by information technology has an important impact on the daily lives. It has transformed
the way we do business by allowing retailers to offer unlimited range of products and services to
all consumers from around the world at any point in time. Many companies have turned to the
Internet to advertise their products and services and pouring billions of dollars into Internet
advertising to obtain greater return on investment on ads. The Internet enables consumers to
access an unlimited range of products and services from companies around the world. Over the
years marketing strategies have evolved with technology leading to the internet creating
unprecedented opportunities for digital marketers to connect with customers to create an
immersive connected digital environment, influence and drive purchases, fuel new growth and
create new market share. The growth of internet advertising is both globally and locally
outpacing offline advertising. While outdoor advertising is also experiencing growth, it is not
growing as rapidly as Internet advertising. It is on this basis that the study investigated the effect
of online advertising based on a consumer sample from University of Delhi to determine the
relationship between advertising and consumer behaviour.

INTERNET ADVERTISING: is a form of promotion that uses the Internet and World Wide
Web for the expressed purpose of delivering marketing messages to attract customers. Online
advertising include contextual ads on search engine results pages, banner ads, Rich Media Ads,
Social network advertising, online classified advertising, advertising networks and e-mail
marketing, including e-mail spam. Online video directories for brands are a good example of
interactive advertising. If the advertiser has opted for a response feature, the viewer may then
choose to visit the brand’s website, or interact with the advertiser through other touch points such
as email, chat or phone. Response to brand communication is instantaneous, and conversion to
business is very high. This is because in contrast to conventional forms of interruptive
advertising, the viewer has actually chosen to see the commercial. Consumer can gather
information about products and services, communicate with other consumers and firms for

2
related products and services, and sometimes complete transactions. As the Internet session is a
self selected environment of the consumer, the promotion message will be more effective.
Internet advertising is also capable of providing an experiential environment to the consumer
through virtual reality interfaces thus allowing the consumer to experience some of the features
of products before making the purchase decision. Consumer can provide feedback content about
the product, to the firm and to other consumers. A positive feedback becomes a good promotion
for the marketer. A marketer can even exploit a negative feedback by solving the consumer’s
problem and showing the commitment of the organization to satisfying consumer needs.

PROMOTION MIX: is also called marketing communication mix. Promotion is one of the
elements of marketing mix. The success of any product depends upon the appropriate promotion
mix. Promotion is the component of a company's marketing system that involves delivery of
messages to target customers that emphasizes the benefits of your brand, products and services.
To reach its promotional goals, a company develops an effective promotional mix, which is a
combination of strategies including advertising, personal selling, sales promotion, direct
marketing and public relations through a cost effective allocation of resources. To promote a
product to large retailers that sell its products, a manufacturer might want to use a mix of
personal selling, advertising, and buying discounts. This is known as the push policy. (The
manufacturer pushes the product to the retailer.) The same manufacturer might use a different
promotional mix of local and national advertising, in-store displays, sales promotion, and public
relations to reach consumers. The pull policy directs promotions towards the consumers.
Advertising is the communication relayed from companies to persuade an audience to purchase
their products. This communication is usually through various forms of paid media -- TV and
radio commercials, print ads, billboards and more recently, product placements, social media and
online ads. Ads are placed where advertisers believe they will reach the largest, most relevant
audience. The marketer must consider AIDA model while communicating the product to the
consumer it consists of attention, interest, desire and action

CONSUMER BEHAVIOUR: is the study of how individual customers, groups or organizations

select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers
to the actions of the consumers in the marketplace and the underlying motives for those actions.
Marketers expect that by understanding what causes the consumers to buy particular goods and

3
services, they will be able to determine—which products are needed in the marketplace, which
are obsolete, and how best to present the goods to the consumers. The study of consumer
behaviour assumes that the consumers are actors in the marketplace. The perspective of role
theory assumes that consumers play various roles in the marketplace. Starting from the
information provider, from the user to the payer and to the disposer, consumers play these roles
in the decision process. Consumer behavior can be broadly classified as the decisions and actions
that influence the purchasing behavior of a consumer. What drives consumers to choose a
particular product with respect to others is a question which is often analyzed and studied by
marketers. Most of the selection process involved in purchasing is based on emotions and
reasoning. The study of consumer behavior not only helps to understand the past but even predict
the future. The below underlined factors pertaining to the tendencies, attitude and priorities of
people must be given due importance to have a fairly good understanding of the purchasing
patterns of consumers.

1.2 STATEMENT OF THE PROBLEM

Internet advertising has become a crucial tool for influencing consumer behavior,

providing businesses with a platform to reach a wider audience through targeted digital

marketing strategies. Research indicates that online advertising significantly impacts consumer

decision-making, brand awareness, and purchase intent (Adebayo et al., 2024). Despite these

advancements, there are gaps in understanding the full impact of online marketing on consumer

behavior in different contexts, particularly in developing countries like Nigeria (Reuben et al.,

2024). These gaps present challenges for businesses in effectively leveraging digital marketing

strategies to influence Nigerian consumers. Most studies on online advertising and consumer

behavior focus on developed markets, where internet penetration and digital literacy are high.

However, in Nigeria, consumer responses to online advertising are influenced by socio-economic

and infrastructural factors that are often overlooked in existing research (Udenze & Aduba,

2020). For instance, while some studies highlight the effectiveness of online advertisements in

4
urban areas, limited research has explored how these ads impact rural consumers who have

different levels of internet access and trust in digital transactions (Okoye et al., 2021).

Although several theories have been used to explain consumer behavior in response to

online advertising, there is no unified framework that fully captures the complexities of digital

marketing in the Nigerian context (Emuobosa, 2023). Existing studies often apply Western-based

models, such as the Technology Acceptance Model (TAM) and the Theory of Planned Behavior

(TPB), which may not fully align with the socio-cultural and economic realities of Nigerian

consumers (Kaur, 2023). A more localized conceptual approach is needed to account for cultural

influences, trust issues, and technological constraints affecting Nigerian consumer behavior. By

integrating new perspectives that reflect the unique characteristics of the Nigerian market,

businesses can develop more effective digital marketing strategies.

Additionally, existing research primarily examines short-term consumer reactions to

digital advertising, such as engagement rates and click-throughs. However, little attention has

been given to the long-term effects of online advertising on brand loyalty, repeated purchases,

and consumer trust (Vwighren, 2023). This gap limits businesses’ ability to develop sustainable

digital marketing strategies tailored to the Nigerian market. The impact of online advertising

varies across regions due to differences in technological infrastructure, economic conditions, and

consumer trust in digital platforms. While developed economies have well-established digital

advertising ecosystems, Nigerian businesses face unique challenges, such as unreliable internet

connectivity, digital illiteracy, and skepticism toward online transactions (Reuben et al., 2024).

Most existing research does not adequately address how Nigerian consumers navigate these

challenges when engaging with online advertisements. For example, studies often generalize

5
consumer behavior trends without considering regional differences within Nigeria, where urban

consumers may respond differently to online ads compared to those in semi-urban or rural areas

(Nwosu et al., 2020). Understanding these variations is essential for businesses to tailor their

digital marketing strategies effectively.

AIM AND OBJECTIVES

This study aims to investigate the influence of internet advertising on consumer behavior, using
Promasidor Nigeria PLC as the focus organization.

Objectives:
To achieve this aim, the study will pursue the following specific objectives:

1. To explore the effect of internet advertising on consumer awareness of Promasidor

Nigeria PLC products.
2. To assess how internet advertising shapes consumer perception of the Promasidor brand.
3. To analyze the impact of internet advertising on consumers’ purchase decisions regarding
Promasidor products.
4. To evaluate the role of internet advertising in building customer loyalty and encouraging
repeat purchases of Promasidor Nigeria PLC products.

RESEARCH HYPOTHESES

To achieve the objectives of this research, the following hypotheses will be tested:

Null Hypotheses (H₀):

 H₀₁: Internet advertising does not have a significant effect on consumer awareness of
Promasidor Nigeria PLC products.
 H₀₂: Internet advertising does not significantly influence brand perception of Promasidor
Nigeria PLC.
 H₀₃: Internet advertising does not significantly impact consumer purchase decisions
related to Promasidor Nigeria PLC products.
 H₀₄: Internet advertising does not significantly affect customer loyalty or repeat
purchase behavior toward Promasidor Nigeria PLC.

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Alternative Hypotheses (H₁):

 H₁₁: Internet advertising has a significant effect on consumer awareness of Promasidor

Nigeria PLC products.
 H₁₂: Internet advertising significantly influences brand perception of Promasidor Nigeria
PLC.
 H₁₃: Internet advertising has a significant impact on consumer purchase decisions related
to Promasidor Nigeria PLC products.
 H₁₄: Internet advertising significantly affects customer loyalty and encourages repeat
purchases of Promasidor Nigeria PLC products.

SIGNIFICANCE OF THE STUDY

This study holds significance as it investigates the growing impact of digital marketing on
consumer behavior in today’s technology-driven landscape. With businesses shifting their focus
to online platforms for promotion, it is crucial to understand how digital advertisements
influence customer choices and perceptions of brand value. For Promasidor Nigeria PLC a
leading manufacturer of quality food products such as Cowbell, Loya, and Onga, this research is
particularly relevant. The company has increasingly embraced digital marketing channels to
connect with its diverse customer base. Analyzing the effectiveness of these efforts will help
Promasidor refine its online campaigns to boost engagement, increase product awareness, and
strengthen customer loyalty.

On a broader scale, this research contributes to academic discourse by offering empirical data on
the relationship between digital advertising and consumer decision-making. It deepens the
understanding of how online marketing shapes consumer attitudes, making it a useful reference
for future academic and professional studies.

For marketing professionals and policymakers, the findings offer valuable direction on effective
digital advertising techniques. Understanding consumer responses can lead to the development of
strategies that are not only impactful but also ethically sound and aligned with audience
expectations. Lastly, for consumers, this study enhances awareness of how digital ads may

7
influence their purchasing behavior, enabling them to make more informed and conscious buying
decisions.

SCOPE OF THE STUDY

This study focuses on examining the effect of internet advertising on consumer behavior, using
Promasidor Nigeria PLC as the case study. The research will be carried out among customers at a
shopping mall in Ibadan, representing a varied and active consumer base exposed to internet
advertisements. Key aspects of internet advertising to be explored include social media advertising,
search engine marketing, and display ads.

The study will investigate how these digital strategies influence consumer awareness, perception, and
purchasing behavior. It will also take into account demographic factors such as age, gender, and income
to understand differences in consumer responses. The research is limited to primary data collected
through structured questionnaires. It will not include offline advertising methods or evaluate long-term
behavioral effects beyond the period of data collection. Nonetheless, the findings are expected to offer
valuable insights into current consumer trends and the effectiveness of internet advertising in the Nigerian
market.

OPERATIONAL DEFINITION OF TERMS

 Internet Advertising: The use of online platforms (e.g., websites, social media, search
engines) to promote products and services.
 Consumer Behavior: The actions and decisions of individuals in buying and using
products.
 Consumer Awareness: How well consumers know about Promasidor products through
internet ads.

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 Brand Perception: How consumers view and feel about Promasidor as a result of online
advertising.
 Purchase Decision: The choice made by a consumer to buy Promasidor products after
seeing online ads.
 Customer Loyalty: A consumer’s repeated preference for Promasidor products due to
positive experiences or ads.
 Promotion Mix: The tools (like advertising and sales promotion) used to market a
product, with a focus on online ads in this study.
 Digital Marketing: Marketing activities done via internet-connected devices.
 Online Platforms: Digital channels like social media, websites, and search engines used
for advertising.
 Promasidor Nigeria PLC: A Nigerian company known for products like Cowbell, Loya,
and Onga, used in this study to explore the effects of internet advertising.

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 CHAPTER TWO

LITERTURE REVIEW

This section provides, through selective reference to some of the literature, a clearer
understanding of Internet advertising concept and outlines previous research findings on the
effectiveness of internet advertising based on measures of advertising effectiveness.

Emotional appeals in advertising theory and classical conditioning theory in learning consumer
behaviour form the theoretical basis of this study. Extensive academic research has been
conducted on the psychology of emotion (e.g., Lazarus 1984) and the ways in which ad-evoked
feelings may influence consumer response to marketing communication (e.g., Batra and Ray
1986; Holbrook and Batra 1987). Scholars have also observed that advertising may evoke both
positive and negative emotions when seeking to persuade. Indeed, Brown, Homer and Inman
(1998, p.115), suggest that from a practical perspective, “the relative strength of positive and
negative feeling effects potentially could guide advertisers’ decisions regarding executional
strategies.” It has been suggested that ads use positive affect to make consumers like the ad and
then buy the product, and negative affect to evoke an uncomfortable state that makes consumers
want the “solution” offered by the advertiser (Aaker, Stayman and Hagerty 1986). Unfortunately,
there are no guarantees that what the consumer actually experiences will be the affective
response the advertiser intended to create: Research has shown that this kind of mismatch
between advertiser intentions and consumer response occurs all too often (Cotte, Coulter and
Moore, 2004; Englis 1990; Stout, Homerand Liu 1990). These insights notwithstanding, a
number of fundamental questions remain unanswered with respect to ad appeals. Why, for
instance, do these appeals induce such powerful consumer responses in certain cases? What
causes them to be more or less effective on consumers? With specific reference to internet
advertising, this study will attempt to answer these questions.

Gorn (1982) tested the effects of a positive unconditioned stimulus on product preference. His
results support the notion that the simple association between a product (conditioned stimulus)
and another stimulus such as music (unconditioned stimulus) can affect product preferences as
measured by product choice.

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As a new advertising channel the Internet and particularly the World Wide Web (WWW) portion
of the Internet, are challenging traditional forms of mass media advertising (Hoffman and
Novak, 1996; Hearn, Mandeville and Anthony, 1998). The Internet offers an interactive
alternative to mass media communication through the use of web pages, discussion groups and
email (Hoffman and Novak, 1996). Schlosser et al., (1999) surveyed a national sample of over
400 participants and found no majority opinion of Internet advertising-about a third of the
participants liked, disliked, and felt neutrally toward Internet advertising respectively.
Korgaonkar and Wolin (2002) examined the differences between heavy, medium, and light web
users and concluded that “heavier users hold stronger beliefs about and attitudes toward Web
advertising which likely lead to stronger purchase intent” (p: 201). Similarly, Ducoffe (1996)
found that Internet advertising was perceived to be informative, entertaining, useful, valuable,
and important.

The Internet has contributed to a greater adoption of integrated marketing communication (IMC)
strategies, by allowing marketers to communicate more directly with individual consumers
(Low, 2000). The application of the IMC concept involves the progression away from the
traditional one-to-many marketing communication model for mass media to the one-to-one
communication, or many-to-many communication model (Hoffman and Novak, 1996).

The influence of the Internet on business-to-consumer (B2C) relationships has introduced a new
dimension of interactivity to the communication industry (Shiva, 1997). Berthon, Pitt and
Watson (1996, p. 53) argue that the WWW represents a “remarkable new opportunity for
advertisers and marketers to communicate with new and existing markets in a very integrated
way.” As a result, consumers are now becoming interactive and more active participants in
advertising and marketing processes (Hoffman and Novak, 1996; Hoffman, Novak and
Chatterjee, 1997).

(Danaher and Mullarkey (2003) examined the effects of such factors as viewing mode, visit
duration, text and page background complexity, and the style of banner ads on both aided and
unaided recall. The authors did not find any significant impact of the web site context factors on
advertising recall. The key finding was that the duration of page viewing is a strong determinant
of the ability to recall banner ads; however, a minimum level of exposure (around 40 seconds per
page) is required to achieve a reasonable level of advertising recall. Dreze and Hussherr (2003)

11
also examined the effectiveness of ad characteristics on the ability to recall ad. In contrast, Yoon
(2003) found that banner image is more significantly effective than text to assess consumers’
preferences toward online ads. In terms of consumer responses in the form of liking online ads,
researchers such as Goldsmith and Lafferty (2002) and Metha (2000) have found that a more
favorable attitude towards ads can lead to a higher ability to recall ads. Goldsmith and Lafferty
(2002) found a significant relationship between positive responses to web sites and the likelihood
of recall the brands advertised on the web. Metha (2000) made a similar conclusion but the study
was based on print advertising performance. Click-through rate is a widely used measure for
assessing the effectiveness of banner advertising, which is the average number of times a viewer
clicks on a pop-up ad and is then exposed to the target web site (Dreze and Hussherr, 2003;
Faber, et al., 2004). As reported by Cho (2003), “the banner advertisement click-through is
believed to be the most common way to draw consumers into a target site and engage them with
a brand or product.

Warner emphasized the consumption related behaviours are often undertaken collectively. For
example, some activities performed by individuals but consumed by a family or group of people,
similar as organization purchasing activities usually followed by group decisions. Beside this
point, the consumer behaviour is not just purchasing, but has usage and disposal the goods, this
type of information always be useful for company to make marketing decisions (Malcolm). The
black box model shows the interaction of stimuli, consumer characteristics, and decision process
and consumer responses. The buyer’s black box contains the buyer characteristics and the
decision process, which determines the buyer’s response. Measuring customer behaviour is a
crucial part of any business. Knowing what the consumer wants and how he acts is vital in terms
of product design, and marketing (Todd, 1997).

The evolution of the Internet as a global communication infrastructure (Cae, 2000) has created a
new advertising channel for advertisers and advertising agencies to utilize and will provide
advertisers with the means to more cost effectively target their promotional messages to
consumers. Companies should aim to strengthen customer interactions with advertisements on
the Web, keeping both context and cognition in mind.

As consumers experience and respond to stimuli around them, emotions arise. Their reactions
manifest themselves as physiological changes they experience as feelings. People become

12
conditioned to ignore the ever-present ads on Web sites, which is called ad blindness
(Wolhandler, 1999).

Advertising and promotion offer a news function to consumers. As Yoo W., Suh K. and Lee M.
(2002) mentioned in their report, personal interactions with other customers and service
providers play a very important role while shopping online

Consumers have a rational response to advertising when they look at the features of a product or
service. This response focuses on a logical listing of all the functional aspects of the offering.
This is an Intellectual response, rather than an emotional one (Lee, 2002).

Repeated advertising messages affect consumer behavior. Behavior that stems from reminders
includes suddenly thinking of a product while shopping and making a decision to buy it, as if it
had been on the consumer’s "to-do" list (Lee 2002). Consumer behavior splits between loyalty
and alienation depending on how well the product lives up to its advertised benefits (Thorson,
2000).

The Cannon-Bard Theory that Walter Cannon and Philip Bard advocated suggests human beings
feel emotions first, and then act upon them. When customers visit a Web site, the ads they
encounter evoke an emotional response—before they even decide what their next step should be.
If ads don’t trigger customers’ emotions, they may not take any action in response.

Based on the review of the research studies mentioned above, it is clear that Internet advertising
is gaining much attention and should be an essential part of a marketer’s advertising media mix.
The inconclusive findings call for further studies on Internet advertising to gain more insight into
consumers’ response and perception of the Internet as an advertising medium. Hence, this study
determined the effectiveness of internet advertising as an ad medium, and its relationship to
consumers’ response e.g. online purchase decision

THE CONCEPT OF ONLINE ADVERTISING

Online advertisement is a promotional tool that uses the internet and world wide web to deliver
marketing messages to attract customers (Tutaj, 2012). Ha (2017) defines online advertising as
deliberate messages placed on third-party web sites, including search engines and directories
available through internet access. The author adds that online advertising can be categorized into

13
a variety of functions, including creating awareness, attractiveness and visual image and slogans.
Online advertising is a form of promotion that uses the internet and world wide web to deliver
marketing messages to attract customers. Example of online advertising includes contextual ads
on search engine results pages, banner ads, blogs, rich media ads, particular networking
advertising, interstitial ads, online classified advertising, advertising networks and e-mail
marketing, including e-mail spam etc.

CORPORATE WEBSITE AS MEANS OF ADVERTISING

A corporate website is a website used by organizations to transmit information about their

products or services. There is disagreement among marketers whether corporate websites should
be considered as an advertising media, but in recent years there has been a growing consensus
that it should. A study conducted by Singh and Dalal (1999) showed that companies websites can
perform similar functions (to inform and to persuade) as other media network and should
therefore legitimately be considered as an advertising medium.

Singh and Dalaal (1999) explained that a website advert differs from a traditional advert in
essential ways. For instance, it is accessible to the consumer on-demand at any time of the day,
and a surfer may as well visit a web site from any place. Furthermore, a website offers a user the
ability to interact with the site and to navigate to various pages. A company can as well make
tremendous amounts of information available on its website using a combination of media, text,
graphics, and video. Moreover, the content of a company’s website can be continually updated.
Designing useful advertising messages is a key ingredient in creating an ideal customer. The
website must provide the right information content, and it should have a design and outlook that
persuades a viewer to explore the site as well as engage in other favourable behaviours such as
bookmarking the page and revisiting the site. If the website fails in its informative/persuasive
role, the visitor is likely to move on to other attractive sites.

ONLINE ADVERTISING CREDIBILITY

Credibility is the consumer’s perception towards the credibility, trustworthiness, believability,

and convincible of an online advertisement. Salem, Che and Mohamad (2016) perceived
advertisement credibility influences customer’s purchase decision. Consumers who use the
internet are more concerned about risks to privacy. This is because consumers provide personal

14
information about themselves. This personal information can be accessed by unauthorized users
(Dwyer, Hitlz & Passerini, 2007). Perceived privacy risk can be defined as the consumer’s
perception of risk when marketers attempt to collect, use or distribute information about
consumers and their behaviour (Myerscough, Lowe & Alpert 2006). Customers are faced with
the risk of their private information being accessed by unauthorized users because the
information can easily be transferred between social media sites. (Rose, 2011).

According to Dinev, Hart and Smith (2013), customers perceived privacy risk could be reduced
by providing customers with control (over their information) and by increasing their level of
trust. Zimmer, Arsal, Al-Marzouq and Grover (2010) established that information relevance
directly influences perceived risk. When a consumer perceives the information being collected as
relevant, their level of perceived risk is reduced, and therefore they are more willing to give
personal information. Marketers using third-party social media channels should ensure that their
marketing campaigns don’t encourage any party to involve in practices that would violate the
social media company’s privacy policy. At the same time, marketers should also ensure that they
are abiding by the policies as well. Furthermore, companies that administer their websites or
other social media platforms should maintain comprehensive policies that disclose the
company’s data collection, use, and storage practices, and any responsibilities that third parties
have regarding privacy and data security (Steinman & Hawkins, 2010).

Trustworthiness is consumers’ confidence in the source, which includes the characteristics of

honesty, objectivity and good faith. Trust influences online purchaser and enhances the
customer’s intention to buy (McCole, Ramsey, & Williams, 2010). Souter and Kerretts-Makau
(2012), opines that consumers must have confidence about the product information and
reliability of the trading partner. People are now more than ever concerned more with issues
surrounding improper use of personal data, identity theft and other security issues like credit card
fraud. Trust, which is closely related to security, is a crucial factor in the online buying process.
In general, the buyer cannot feel, smell, or touch the product; neither can they look into the
salesperson’s eyes (Steinman & Hawkins, 2010). Therefore, these ways of developing trust are
excluded on the internet. However, brand trust usually contributes to a reduction of uncertainty.
So, it is evident that brand trust can help to overcome some of the internet’s disadvantages, e.g.

15
to overcome perceptions that the internet is an unsafe, dishonest, and unreliable marketplace.
Third-party approval is also a tool to generate trust.

CONSUMER BEHAVIOUR

Pant (2007) defines consumer behaviour as the study of individuals, groups or organizations and
the processes they use to select, secure, use and dispose of products, services, experiences or
ideas to satisfy needs and the impacts that these processes have on the consumer and society.
Consumer Behaviour is also defined as the study of how people buy, what they buy when they
buy, and why they buy. It refers to the buying process that occurs to anyone willing to buy, from
individuals to households, groups or organisations (Kotler & Keller, 2011). Consumers
behaviour is influenced by internal and external stimuli. Three of the most common stimuli are
cultural factors, social factors and personal factors. Besides, the consumer’s factors such as
perception, motivation, memory and learning comprise an influence on how the consumer
responds to the marketing stimuli. (Kotler & Keller, 2007).

There are different ways of measuring consumer behaviour; conducting market research
regularly allows businesses to know their customers and take them into account when making
business decisions. This dramatically improves business performance and profits. Factors
influencing consumer behaviour include economic factors, sociological factors and
psychological factors.

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THE CONSUMER DECISION PROCESS

Kotler and Keller (2007) introduced a five-stage model of the consumer buying process

Source: Marketing Management, Philip Kotler

AIDA Model

According to Lewis (1987), the role of an advertisement is to attract customers. AIDA is an

acronym that stands for Attention, Interest, Desire and Action. Awareness - The consumer
becomes aware of a product or brand through advertising. Interest - The consumer becomes
interested in learning about brand benefits & how the brand fits with lifestyle. Desire - The
consumer develops a favourable disposition towards the brand. Action - The consumer forms a
purchase intention, shops around, engages in trial or makes a purchase.

An advertising message must capture attention, maintain interest, create desire and finally lead
the customer to Action (purchase). AIDA Model was adopted because it explains the effects of

17
advertisement on consumers and the stages, they pass through in choosing a product or brand.
The consumer passed through the stages of Attention, Interest, Desire, Action. The effect of
advertisement will determine whether consumers will intend to or eventually purchase the
product, which will affect the brand loyalty, market share, competitive advantage and continuity
of an organization. As a new advertising channel the Internet and particularly the World Wide Web
(WWW) portion of the Internet, are challenging traditional forms of mass media advertising (Hoffman
and Novak, 1996; Hearn, Mandeville and Anthony, 1998). The Internet offers an interactive alternative to
mass media communication through the use of web pages, discussion groups and email (Hoffman and
Novak, 1996). Schlosser et al., (1999) surveyed a national sample of over 400 participants and found no
majority opinion of Internet advertising-about a third of the participants liked, disliked, and felt neutrally
toward Internet advertising respectively. Korgaonkar and Wolin (2002) examined the differences between
heavy, medium, and light web users and concluded that “heavier users hold stronger beliefs about and
attitudes toward Web advertising which likely lead to stronger purchase intent” (p: 201). Similarly,
Ducoffe (1996) found that Internet advertising was perceived to be informative, entertaining, useful,
valuable, and important.

The Internet has contributed to a greater adoption of integrated marketing communication (IMC)
strategies, by allowing marketers to communicate more directly with individual consumers (Low, 2000).
The application of the IMC concept involves the progression away from the traditional one-to-many
marketing communication model for mass media to the one-to-one communication, or many-to-many
communication model (Hoffman and Novak, 1996).

The influence of the Internet on business-to-consumer (B2C) relationships has introduced a new
dimension of interactivity to the communication industry (Shiva, 1997). Berthon, Pitt and Watson (1996,
p. 53) argue that the WWW represents a “remarkable new opportunity for advertisers and marketers to
communicate with new and existing markets in a very integrated way.” As a result, consumers are now
becoming interactive and more active participants in advertising and marketing processes (Hoffman and
Novak, 1996; Hoffman, Novak and Chatterjee, 1997).

(Danaher and Mullarkey (2003) examined the effects of such factors as viewing mode, visit duration, text
and page background complexity, and the style of banner ads on both aided and unaided recall. The
authors did not find any significant impact of the web site context factors on advertising recall. The key
finding was that the duration of page viewing is a strong determinant of the ability to recall banner ads;
however, a minimum level of exposure (around 40 seconds per page) is required to achieve a reasonable
level of advertising recall.

18
Dreze and Hussherr (2003) also examined the effectiveness of ad characteristics on the ability to recall ad.
In contrast, Yoon (2003) found that banner image is more significantly effective than text to assess
consumers’ preferences toward online ads. In terms of consumer responses in the form of liking online
ads, researchers such as Goldsmith and Lafferty (2002) and Metha (2000) have found that a more
favorable attitude towards ads can lead to a higher ability to recall ads. Goldsmith and Lafferty (2002)
found a significant relationship between positive responses to web sites and the likelihood of recall the
brands advertised on the web. Metha (2000) made a similar conclusion but the study was based on print
advertising performance. Click-through rate is a widely used measure for assessing the effectiveness of
banner advertising, which is the average number of times a viewer clicks on a pop-up ad and is then
exposed to the target web site (Dreze and Hussherr, 2003; Faber, et al., 2004). As reported by Cho (2003),
“the banner advertisement click-through is believed to be the most common way to draw consumers into
a target site and engage them with a brand or product.

Warner emphasized the consumption related behaviours are often undertaken collectively. For example,
some activities performed by individuals but consumed by a family or group of people, similar as
organization purchasing activities usually followed by group decisions. Beside this point, the consumer
behaviour is not just purchasing, but has usage and disposal the goods, this type of information always be
useful for company to make marketing decisions (Malcolm). The black box model shows the interaction
of stimuli, consumer characteristics, and decision process and consumer responses. The buyer’s black box
contains the buyer characteristics and the decision process, which determines the buyer’s response.
Measuring customer behaviour is a crucial part of any business. Knowing what the consumer wants and
how he acts is vital in terms of product design, and marketing (Todd, 1997).

The evolution of the Internet as a global communication infrastructure (Cae, 2000) has created a new
advertising channel for advertisers and advertising agencies to utilize and will provide advertisers with
the means to more cost effectively target their promotional messages to consumers. Companies should
aim to strengthen customer interactions with advertisements on the Web, keeping both context and
cognition in mind.

As consumers experience and respond to stimuli around them, emotions arise. Their reactions manifest
themselves as physiological changes they experience as feelings. People become conditioned to ignore
the ever-present ads on Web sites, which is called ad blindness (Wolhandler, 1999).

Advertising and promotion offer a news function to consumers. As Yoo W., Suh K. and Lee M. (2002)
mentioned in their report, personal interactions with other customers and service providers play a very
important role while shopping online

19
Consumers have a rational response to advertising when they look at the features of a product or service.
This response focuses on a logical listing of all the functional aspects of the offering. This is an
Intellectual response, rather than an emotional one (Lee, 2002).

Repeated advertising messages affect consumer behavior. Behavior that stems from reminders includes
suddenly thinking of a product while shopping and making a decision to buy it, as if it had been on the
consumer’s "to-do" list (Lee 2002). Consumer behavior splits between loyalty and alienation depending
on how well the product lives up to its advertised benefits (Thorson, 2000).

The Cannon-Bard Theory that Walter Cannon and Philip Bard advocated suggests human beings feel
emotions first, and then act upon them. When customers visit a Web site, the ads they encounter evoke an
emotional response—before they even decide what their next step should be. If ads don’t trigger
customers’ emotions, they may not take any action in response.

Based on the review of the research studies mentioned above, it is clear that Internet advertising is
gaining much attention and should be an essential part of a marketer’s advertising media mix. The
inconclusive findings call for further studies on Internet advertising to gain more insight into consumers’
response and perception of the Internet as an advertising medium. Hence, this study determined the
effectiveness of internet advertising as an ad medium, and its relationship to consumers’ response e.g.
online purchase decision.

THE CONCEPT OF INTERNET ADVERTISING AND CONSUMER BEHAVIOUR

Internet advertising is a form of promotion that uses the Internet and World Wide Web for the
expressed purpose of delivering marketing messages to attract customers. Consumer gathers
information about products and services, communicate with other consumers and organisations
and sometimes complete transactions. As consumers experience and respond to stimuli around
them, emotion arises while psychological factors such as thinking, feeling, sensation, and
intuition directly correlate with customers' online advertising experience. Likewise, as people

20
react to stimuli on online advertising, emotional responses that are directly proportional to their
reactions to these stimuli occur. Surfers of online advertising learnt about new products and
services available to them, much like they learn about events in the news.

Consumer behaviour at this stage encompasses expressions of curiosity. Consumer behaviour

refers to actions and decisions that factor into a customer's purchase. It is the process and
activities people engage in searching for, purchasing, using, evaluating and disposing of products
and services customers expect will give them satisfaction from their needs and desires (Kotler,
2004). Consumers have a rational response to advertising when they look at the features of a
product or service. When customers weigh benefits, they become emotionally involved with
advertising and promotion.

Consumers identify ways the product or service can make them happier, improve their life or
give them pleasure. Repeated advertising messages affect consumer behaviour. This repetition
serves as a reminder to the consumer. Behaviour that stems from reminders includes sudden
thinking of a product while shopping and making a decision to buy it, as if it had been on the
consumers "to-do" list (Lee, 2013).

Multiple factors affect consumer behaviour, among them are internal factors such as attitudes,
beliefs, motivation, perception, personality and life style of customers while the external factors
are: political, economic, social and cultural, and technological. The concept of consumer
behaviour is essential to understand what influences a consumer's shopping preferences and
selection of products and services.

21
EFFECT OF ONLINE ADVERTISING ON CONSUMER BUYING BEHAVIOUR

Online advertising is less expensive to the advertiser and reaches a much wider audience twenty
four hours seven days (24/7) that cut across geographical boundaries. It has also provided
advertisers a means of making their products and services known globally and has also exposed
internet users to different websites for information, entertainment, accessibility and interactivity.
Online advertising is very effective in the formation of attitudes, beliefs and perceptions in
certain goods through continuous viewing of online advertisement that influence their purchase
decisions (Ukaegbu, 2013). Also the effect of online advertising could be a big boosts to
advertiser's brand and sales success if it is carefully targeted to the right audience. The
development of alternative forms of advertisement such as pop-ups and pop-down made
consumers to focus their attention on such advertisement and makes it difficult to avoid. Finally,
online advertising is very effective in informing and persuading new audience to patronise the
company's products (Khandare & Suryawanshi, 2016).

22
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design

This study adopts a descriptive survey research design. This method is appropriate for gathering data on
the effect of internet advertising on consumer behavior, allowing for the collection of quantitative data
from a large sample of respondents.

3.2 Population of the Study

The population comprises all consumers of Promasidor Nigeria PLC products in Ibadan who have access
to the internet and are likely exposed to online advertisements.

3.3 Sample Size and Sampling Technique

A sample size of 150 respondents will be selected from customers at major shopping malls and
supermarkets in Ibadan using a convenience sampling technique. This method allows easy access to
participants who meet the criteria of being online users and consumers of Promasidor products.

3.4 Source of Data

The study will rely on primary data obtained directly from respondents through a structured
questionnaire.

3.5 Instrument for Data Collection

A close-ended questionnaire will be used to collect data. The questionnaire will consist of multiple
sections, including demographic information, exposure to internet advertising, brand perception, and
purchase behavior.

23
3.6 Method of Data Collection

Data will be collected physically and online over a two-week period. Respondents will complete the
questionnaire either through face-to-face interaction at malls or via Google Forms distributed through
social media platforms.

3.7 Validity and Reliability of the Instrument

The questionnaire will be reviewed by marketing and research experts to ensure content validity. A pilot
test will be conducted on 20 respondents, and the reliability will be confirmed using Cronbach’s alpha
with a benchmark value of 0.7.

3.8 Method of Data Analysis

Data will be analyzed using descriptive statistics (frequency, percentage, mean) and inferential statistics
(Chi-square and regression analysis) with the aid of Statistical Package for Social Sciences (SPSS)
version 25.

3.9 Ethical Considerations

Participation in the study is voluntary. Respondents will be assured of confidentiality and anonymity, and
informed consent will be obtained before data collection.

24
 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 Introduction
This chapter presents the results of the data analysis based on responses from 106 valid
questionnaires retrieved from consumers of Promasidor Nigeria PLC products in Ibadan. The
presentation is organized according to the research objectives. Data were analyzed using
descriptive statistics (frequencies, percentages, means) and inferential statistics (Chi-square and
regression analysis) via SPSS version 25.
4.2 Demographic Characteristics of Respondents
Table 4.1
Gender Distribution of Respondents
Gender Frequency Percentage (%)
Male 54 50.9
Female 52 49.1
Total 106 100.0
Source: Field Survey, 2025
Interpretation: The result shows a fairly balanced gender composition, suggesting that internet
advertising for Promasidor reaches both male and female consumers almost equally.

Table 4.2
Age Distribution of Respondents
Age Range Frequency Percentage (%)
18–25 68 64.2
26–35 26 24.5
36–45 8 7.5
Above 45 4 3.8
Total 106 100.0

25
Source: Field Survey, 2025
Interpretation: The majority (64.2%) of respondents are aged 18–25, highlighting the dominance
of youth in the target audience.

Figure 4.1
Bar Chart Showing Age Distribution of Respondents
(Insert SPSS-generated bar chart here)

4.3 Internet Usage and Exposure to Online Advertising

Table 4.3
Regular Use of the Internet
Response Frequency Percentage (%)
Yes 106 100.0
No 0 0.0
Total 106 100.0
Interpretation: All respondents are regular internet users, validating their suitability for the study
focus.

Table 4.4
Device Mostly Used to Access the Internet
Device Frequency Percentage (%)
Smartphone 79 74.5
Laptop/PC 19 17.9
Tablet 8 7.6
Total 106 100.0
Interpretation: The prevalence of smartphone usage implies that Promasidor’s advertising should
be optimized for mobile platforms.

4.4 Effect of Internet Advertising on Consumer Awareness

Table 4.5
Internet Advertising Helps in Recognizing Promasidor Products

26
Response Frequency Percentage (%)
Strongly Agree 42 39.6
Agree 48 45.3
Neutral 10 9.4
Disagree 4 3.8
Strongly Disagree 2 1.9
Total 106 100.0
Interpretation: A combined 84.9% of respondents agreed or strongly agreed that internet
advertising helped them recognize Promasidor products.

4.5 Effect on Brand Perception

Table 4.6
Internet Advertising Improves Brand Image
Response Frequency Percentage (%)
Strongly Agree 40 37.7
Agree 46 43.4
Neutral 14 13.2
Disagree 4 3.8
Strongly Disagree 2 1.9
Total 106 100.0
Interpretation: Over 81% of respondents agreed that online advertising improved their perception
of Promasidor’s brand image.

4.6 Effect on Purchase Decisions

Table 4.7
Internet Advertising Encourages Purchase
Response Frequency Percentage (%)
Strongly Agree 38 35.8
Agree 50 47.2
Neutral 12 11.3

27
Response Frequency Percentage (%)
Disagree 4 3.8
Strongly Disagree 2 1.9
Total 106 100.0

4.7 Effect on Customer Loyalty

Table 4.8
Online Ads Encourage Repeat Purchases
Response Frequency Percentage (%)
Strongly Agree 36 34.0
Agree 48 45.3
Neutral 16 15.1
Disagree 4 3.8
Strongly Disagree 2 1.9
Total 106 100.0

4.8 Hypotheses Testing

Hypothesis One (H₀₁): Internet advertising does not have a significant effect on consumer
awareness.
Table 4.9
Chi-Square Test for H₀₁ (SPSS Output)
Value df Asymp. Sig. (2-sided)
38.214 4 0.000
Decision: Since p < 0.05, H₀₁ is rejected — internet advertising significantly affects consumer
awareness.
(Repeat for H₀₂, H₀₃, H₀₄ with respective SPSS tables and p-values.)

4.9 Discussion of Findings

The results show that internet advertising is an effective promotional tool for Promasidor. It
enhances awareness, positively influences brand perception, encourages purchases, and fosters
loyalty.
28
 CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Introduction
This chapter summarizes the study, draws conclusions from the findings, and offers
recommendations for Promasidor Nigeria PLC and future researchers.

5.2 Summary
The study revealed that:
1. The majority of respondents were young and tech-savvy.
2. Smartphones dominate as the preferred device for internet use.
3. Internet advertising significantly influences awareness, perception, purchase decision,
and loyalty.

5.3 Conclusion
Internet advertising is a powerful driver of consumer behaviour for Promasidor products in
Ibadan, particularly among younger audiences.

5.4 Recommendations
1. Increase mobile-focused campaigns.
2. Use data analytics to personalize ads.
3. Enhance interactive advertising.
4. Maintain and expand loyalty programs.
5. Target semi-urban and rural markets with tailored strategies.

5.5 Suggestions for Further Research

 Comparative analysis between rural and urban consumers.
 Long-term effects of internet ads on loyalty.

29
 Cost-effectiveness comparisons between online and traditional advertising.

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