REVIEW OF THE RELATED LITERATURE OF INFLUENCE OF WEB-BASED

ADVERTISEMENT TOWARDS PURCHASE DECISION OF ABM STUDENTS

The society has been taking a path towards a more digital world that is clearly manifested
by the integration of technology in people’s daily lives such as the frequent use of internet, social
media and other communication technologies which have changed the course in the Marketing
industry, specifically in advertising. This has led to the existence of online advertising, the most
widely used advertising technique in the 21st century.
Deshwal (2016) defined online advertising, also known as internet advertising, as “a type
of mass communication which is based on traditional form of advertising but develops its own
communication strategies in correlation with the new technical and medium based requirements.”
This means that internet advertising is the same as the traditional advertising, only that it uses the
new technical medium, which is the web, thus being known as the web-based advertisement.
Web-based advertisement has a variety of formats. According to Burns and Lutz (as cited
in Ha, 2012), there were 6 distinct online ads formats which were commonly used in the industry.
These formats are banner, floating ads, large rectangles, interstitials, skyscrapers, and pop-up ads.
Among these formats, pop-up ads scored highest on the annoyance factor, while banner ads
received the highest overall positive attitude from the consumers.
Meanwhile, Ramya and Ali (2016, p.76) defined the consumer’s buying behavior as “the
selection, purchase, and consumption of goods and services for the satisfaction of their wants.”
This explains the process of how consumers choose the products that they will be purchasing,
whether these products would please them. This consumer’s behavior results to a purchase
decision, which Kotley and Levy (as cited in Khuong & Duyen, 2016) described as the engagement
of an individual in making a decision and physical activity when evaluating, acquiring, using or
disposing of goods and services. This refers to how a consumer makes a decision while assessing
goods and services thus making an action whether these products will be bought or not. Purchase
decision process has 5 stages namely the problem recognition, the information search, the
evaluation of alternatives, the purchase decision and the post purchase evaluation (Xu & Chen,
2017, p.2). Moreover, Lautiainen (2015, p.6) stated that there are several factors that affect
purchase decision namely the personal, psychological, and social factors.
Furthermore, according to Lim, Yap, and Lau (2011, p.1523), online advertisements are
used by the consumers in making their purchase decision about 26% of the time, since they were
able to recall the ads that they have been exposed to. However, Deshwal (2016, p.202) discovered
that web-based advertisement has violent reactions from online consumers than other media, as
these consumers have a negative perception towards interrupting ads that make them not to see
such websites.
SUMMARY AND SYNTHESIS

Web-based advertisement is closely similar to traditional advertisement, only that

it uses new technical medium which is the web (Deshwal, 2016). This advertisement has a variety

of formats that affects the consumer’s buying behavior (Burns and Lutz, 2012). The consumer’s

buying behavior may lead to a purchase decision that has 5 stages: the problem recognition, the

information search, the evaluation of alternatives, the purchase decision and the post purchase

evaluation (Xu & Chen, 2017). Also, the purchase decision is affected by several factors namely

the personal, psychological, and social factors (Kotley and Levy, 2016). Through these factors

takes place the intervention of the web-based advertisement revealed by the study of Lim, Yap,

and Lau (2011) and Deshwal (2016) which has contradicting results. In the study of Lim, Yap, and

Lau (2011), web-based advertisement helps the consumers in making purchase decision by

recalling ads. However, Deshwal (2016) revealed that web-based advertisement gives negative

perception to the costumers because of the interrupting ads when they access the web. For this

reason, the researchers conducted the research to determine whether the promotion of products and

services using web-based advertisement is an effective marketing strategy in making an influence

in the process of a consumer’s purchase decision.

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