Customer Attitude Toward Online Advertising in Penang KDU University

Student

Chapter 1

1.1 Introduction

The internet has been one of our most transformative and fast-growing technologies
(Roser, Ritchie and Ortiz-Ospina, 2019). It has been a very useful tool for
communication, entertainment, education, and electronic trade. 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. The Internet has emerged as an advertising medium (Silk et al., 2001). Many
companies have turned to the Internet to advertise their products and services.
Companies are paying billion of dollar into internet advertising to earn a larger return
on investment on advertise.

Online advertising is one of the most effective ways for businesses of all sizes to
expand their reach, find new customers, and diversify their revenue streams
(Wordstream.com, 2019). Online advertising Malaysia has enhanced the
communication between the organization and consumer, more effective advertising
message, save the cost of marketing and others more (Cleverus Consulting, 2018).
Online advertising is displayed in a variety of ways on the websites. Each type of
advertising has its features, it is inserted differently and has a particular purpose.
These are some of the most commonly used types of online advertising such as
Banner Ads, Email Marketing , pop up, blog advertising, mobile advertising ,social
networking advertising and video advertising (Advertising, 2019). In online advertising,
promotional messages appear on the screens of online laptops, desktops, tablets,
smart TVs, and smartphones. This type of advertising has existed for about twenty-
five years since the internet started becoming popular (Market Business News, n.d.).

In 2017, Malaysia’s Internet penetration had risen to 85.7 per cent from just 70.0 per
cent in 2015 (NST Online, 2018). 25.84 million Internet users in Malaysia which is
equal to 80% of the population (Digital Influence Lab, n.d.).As Mr hasnain said that
advertising expenditure (adex) on digital media in Malaysia is going strong, following
similar trends globally in 2018 (DHESI, 2018).
1.2 Problem Statement

In the study of the customer attitude towards online advertising consist of numerous
gaps. One of the research gaps is lack of literature review of this research topic in the
context of Malaysia. This has caused researchers to face difficulty in examining this
topic as there is lack of relevant information (Abd Aziz et al.,, 2008). Therefore
researcher research further in this study field based on the Malaysia context.

The Malaysian advertising landscape is gradually shifting its traditional media to the
new media advertising (Malaysian Communications and Multimedia Commissions,
2009). Consumers can select whether, when, and how much commercial content they
wish to view in an online advertisement (Schlosser et al., 1999). It is all up to the
consumers to seek additional commercial content in the online advertisement
(Schlosser et al., 1999). The main goal of an advertising strategy is to inform, to create
awareness, to persuade, to remind in order to eventually sell something, be it an idea,
product or service (Kotler et, al. 1999). In addition, consumers’ perception and
attitudes towards online advertising may still evolve over time (Karson, McCloy, and
Bonner, 2006), therefore researchers lack of understanding and little is known in
consumer beliefs about online advertising associated with consumer behaviour in
Malaysia (Abd Aziz et al., 2008).

There are three variables that are used in this research, they are credibility, informative
and hedonism and pleasure. This variables made an impact to the consumer attitude
towards online advertising, for instance Credibility plays an important role in
advertising because it may lead to a higher perception of the promoted product and
consumers may feel good and comfortable with the advertisement (Kwek, Tan, and
Lau, 2010). On the other hand, according to Marchall and Na (2003), they identified
that internet media is less credible than traditional media outlets. As for informative
customer intend to seek for a detailed goods/services information in an advertisement
and in addition, when customers required information about the company’s product
and services, an informative advertisement is able to tell the consumers the brands
feature which they are looking for (Kwek et al., 2010). This means, the information is
able to help the customer distinguish the company’s product and services from others
competitors. Moreover, Hedonic advertisement always comprises pleasure, fantasy,
and fun (Batra and Antola, 1990; Dhar and Wertenbroch, 2000; Holbrook and
Hischman, 1982). According to Eze and Lee (2012), they stated that advertising is
entertaining, delighting, and pleasurable. The purpose of pleasure-seeking is for a
quality of emotional experience (Campbell, 1987) and pleasure can make consumers
feel good about an online advertisement.

1.3 Research Objective

The objective of study is to analyse the customer’s attitude towards online
advertising. To investigate the effect of the variables towards the attitude of
students to online advertising.
1. To study the relationship between credibility and customers attitude towards
online advertising
2. To investigate the relationship between informative and customers attitude
towards online advertising.
3. To analyze the relationship between pleasure and customers attitude
towards online advertising.

1.4 Research Question

From the problem stated in problem statement, the below research question are
derived.
1. What is the relationship between credibility and customers attitude towards
online advertising?
2. How the effect of informative variables towards customers attitude to online
advertising?
3. Does pleasure influence customer attitudes toward online advertising?

1.5 Significance study

The reason this topic is chosen is to allow for better understanding of the
consumer’s attitude towards online advertising, so that marketers can effectively
create their advertisements via internet. Furthermore, as there is lack of research
study of this topic in the Malaysian context, in order to enhance the knowledge in
this field, this research is carried out in Malaysia.
1.5.1 Theoretical Contribution
In this research, the theoretical contribution to attitude towards online
advertising among university student in Penang are credibility, informative and
pleasure toward customer’s attitude to online advertising. First is credibility, If
the marketer provide truthful information on advertising, it will increase the
believability of advertising and able to gain confidence of students. Next is
informative, if the university provide a course for students about online
advertising, it will easily obtain and retrieve the latest information about the
products available in marketplace and also allows student make comparison
between products and choose the one which is suitable for their needs and
wants. Lastly, pleasure, pleasurable online advertising are able to capture a
consumer’s attention. In this case, university should held or create an event
about advertising, it can lead to positive attitude when it can capture student’s
attention.

1.5.2 Managerial Contribution

This study give insightful information to help Malaysia SMEs to identify the
factors that influence customer’s attitude toward online advertising. Next, this
study also will help increase the credibility towards customer attitude in the
workplace, which mean manager
1.6 Scope of study

This study is focuses on factor affecting Penang University student’s attitudes

towards online advertising. Its research goal is in KDU University Collage, Penang.

1.7 Definition of key variables

It has three variables in this research which is credibility, informative and pleasure.
First is credibility, it plays an important role in advertising because it may lead to a
higher perception of the promoted product and consumers may feel good and
comfortable with the advertisement (Kwek, Tan, and Lau, 2010). Informative, it
refers to the degree of usability and effectiveness of the information contained in
an online advertisement (Kottler and Keller, 2008). Lastly is pleasure, According to
O’Shaughnessy and Jackson O’Shaughnessy (2002), hedonism means pleasure,
enjoyment or happiness.

1.8 Organization of the remaining chapter

In the remaining chapter which is chapter 2, discussion of underpinning theory,
discussion of key variables, and discussion of the relationship between variables,
theoretical framework and hypothesis development will be discuss in next chapter.
References

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