DECLARATION
This is to certify that the material embodied in the present Ph.D. thesis entitled “A Study of
Internet Advertising in Indian Perspective” is based on my original work. It has not been
submitted in part or full for any other Diploma or Degree of any other University. My
indebtedness to other works has been duly acknowledged at the relevant places.
Date: (Preeti Jain)
Place: Rohtak Research Scholar
University Regn. No. 03-VMR-25
Countersigned by Supervisor
([Link] Kumar)
Professor
Department of Commerce
Maharshi Dayanand University, Rohtak
Forwarded by
(Dr. R.R. Saini)
Professor & Head, Department of Commerce
Maharshi Dayanand University, Rohtak
ACKNOWLEDGEMENT
At the very outset, I would like to thank my religious preceptor (Shri Dharm Muni Ji, a Jain
Monk) for his everlasting blessings.
I express my deep sincere gratitude to a very good human being, my supervisor and my dearest
teacher “DR. SANJIV KUMAR” for giving me the opportunity to participate in this interesting
work. He has supported me every time with his guidance, insights, encouragement and many a
productive discussion on Internet Advertising. I am extremely thankful to him and I will remain
grateful always.
I sincerely thank to Dr. Neeraj Kaushik (NIT Kurukshetra) for his teachings. After attending
his workshop data analysis become easy. He is a mentor for every researcher. I am extremely
thankful to him.
I thank to Dr. Vazir Nehra for his support and words of encouragement.
I would, also, like to thank to all MEMEBRS of Data Analysis Group created by [Link]
Kaushik for their productive discussion, which solved my queries several times.
I would especially like to thank Dr. Rajpal for his generous support.
I am grateful to Dr. Narender Kumar Garg, Dr. Ravinder Vinayak, Dr. Vasistha, Dr.
Chahal, Dr. Malik, Dr. Geeta Manmohan, Dr. R.R. Saini, Dr. Kuldeep, Dr. Tialk Raj, Dr.
Seema Rathee, Dr. Priti Sharma, Dr. Manoj, Dr Shakti Singh, Mrs Raman Malhotra, Dr.
Sanket Vij, Dr. Reeti Gupta, Dr. Pooja Jain, Mr. Devender Kumar and to all others who
helped me directly or indirectly. IV
This acknowledgement would be incomplete without expressing my heartfelt appreciation to all
my friends who spent their valuable time in filling up the questionnaire which formed the base
of this research.
I am also indebted to UGC & Maharshi Dayanand University, Rohtak
I also express my gratitude to Principal Sir and My Colleagues of Hindu Girls College,
Sonipat for their kind cooperation.
I, also wish to thank my beloved husband Mr. Vipin Kumar Bansal for his great care, love and
sacrifices made during this tenure.
I thank to my lovely younger sister Aastha Jain for her great help and care.
I am also highly grateful & sorry to my little cutiepie, my newborn baby Garvit Bansal, as i
could not give him proper care and time during this tenure.
I am also indebted to my all FAMILY MEMBERS and FRIENDS.
Last but not least, I acknowledge a debt of gratitude that could never be repaid to my PARENTS
for their support.
(Preeti Jain)
TABLE OF CONTENTS
Certificate I
Declaration II
Acknowledgement III
Table of Contents V
List of Abbreviations IX
List of Tables XI
List of Figures XVI
CHAPTER 1: INTRODUCTION 1-10
1.1 Introduction 1-2
1.2 Advertising and Perception 2-3
1.3 Internet Advertising 4-5
1.4 Growth of Internet users is main cause of advent of I.A 5-8
1.5 Conclusion 9
CHAPTER 2: LITERATURE REVIEW 11-60
2.1 Introduction 11
2.2 Review of existing literature 11-56
2.3 Research Gaps 57
2.4 Justification of the Study & Statement of Problem 58
2.5 Conclusion 59
CHAPTER 3: RESEARCH OBJECTIVES AND METHODOLOGY 61-75
3.1 Introduction 61
3.2 Objectives of the Study 61
3.3 Hypothesis 61
3.4 Conceptualisation & Operationalisation of Objectives 61-66
3.5 Research Methodology 66-72
3.5.1 Research Type
3.5.2 Research Design
3.5.3 Universe of the study
3.5.4 Sample Design
• Sample unit
• Sampling technique
• Sample size determination
• Area of study
3.5.5 Method of Data Collection
• Primary data (Questionnaire Design)
• Secondary data
3.5.6 Procedure for data collection
3.5.7 Pre-testing
3.5.7 Pilot Study
3.5.8 Reliability and Validity
3.6 Statistical Techniques 73
3.7 Software Used 73
3.8 Limitations of the study 73
3.9 Outline of the Study 74-75
CHAPTER 4: ANALYSIS AND INTERPRETATION 77-196
4.1 Introduction 77
4.2 Demographic Profile of Internet Users 78-80
4.3 Distribution of respondents (internet users) according to
access point to internet, internet usage, experience,
skills and gadget used for internet surfing 80-85
4.4 Research Objective 1: To measure the perception of inte-
rnet user’s towards Internet Advertising 86-165
4.5 Profile of Advertisers 165-170
4.6 Research Objective 2: To measure the perception of
Advertisers towards Internet Advertising 171-191
4.7 Research Objective 3: To identify the problems
related to internet advertising 192-196
CHAPTER 5: FINDINGS, SUGGESTIONS & RECOMMENDATIONS 197-220
5.1 Introduction 197
5.2 Findings related to 1st objective “To measure the perception of internet user’s towards
Internet Advertising”
197-211
5.3 Findings related to second objective “To measure the perception of Advertisers
towards Internet Advertising”
211-215
5.4 Findings related to third objective “To identify the problems related to internet
advertising and to offer the suggestions and recommendations for improvement”
215-218
5.4.1 Problems pertaining to Internet Users
5.4.2 Problems pertaining to Advertisers
5.4.3 Suggestions and Recommendations
5.5 Practical Implications of the Study 218-219
5.6 Scope of Further Research
219
REFERENCES 221-232
APPENDICES
Appendix A: Questionnaire for Internet Users
Appendix B: Questionnaire for Advertisers
Appendix C: Paper 1
Appendix D: Paper 2
IX
LIST OF ABBREVIATIONS
C.F.A. Confirmatory factor analysis
S.E.M. Structural equation modeling
SERP Search engine result page
AVE Average Variance Extracted
MSV Maximum shared variance
ASV Average shared variance
CR Composite Reliability
CFI Comparative fit index
GFI Goodness of Fit Index
AGFI Adjusted goodness of fit
REMSEA Root mean square error of approximation
CMIN/ df Chi-Square/ Degree of freedom
KMO Kaiser-Meyer-Olkin
SEM Search engine marketing
SEO Search engine optimization
CPC Cost per click
CPA Cost per action/acquisition
ATOA Attitude toward online advertising
IAB Interactive advertising bureau
IAMAI Internet and mobile association of India
IMRB Indian Market Research Bureau
TRAI Telecom Regulatory Authority of India
Ad Advertisement
IA or I.A. Internet Advertising
S.N.A Social Network Advertising
SPSS Statistical package for social sciences X
AMOS Analysis of Moment structures
USA United States of America
UK United Kingdom
Rs. Rupees
NCT National Capital Territory
NCR National Capital Region
ANOVA Analysis of Variance
IVA Instructional video advertising
ASCI Advertising Standards Council of India
O.A . Online Advertising
W.A . Web Advertising
S.D. Standard Deviation
WWW World Wide Web
E.F.A Exploratory factor analysis
F.A. Factor Analysis
UG Under Graduate
PG Post Graduate
IU Internet User
IUE Internet Using Experience
Entertain Entertainment
Credibi Credibility
Econom Economy
Web_Eco Web Economies
Materialis Materialism
Value_Corrup Value Corruption
Attitud Attitude
Beh_Response Behavioural Response
LIST OF TABLES
S. NO DESCRIPTION PAGE
NO.
Table 1.1 World Internet Users and Penetration 5
Table 1.2 Top 20 Countries with Highest No. of Internet Users and their 7
Penetration
Table 1.3 Internet Users in India and Penetration 8
Table 2.1 Literature Review 11
Table 3.1 Sample Frame 68
Table 3.2 Cronbach’s alpha (threshold value) 72
Table 4.1 Demographic Profile of Internet Users 78
Table 4.2 Internet users and their access point to internet 80
Table 4.3 Internet users and their internet usage 81
Table 4.4 Internet users and internet using experience 82
Table 4.5 Internet users and their internet using skill 84
Table 4.6 Internet users and mean/gadget used for internet surfing 85
Table 4.7 Fitness Indexes (Threshold values) 86
Table 4.8 Value of Fit indices of First factor (Perceived Entertainment) 87
Table 4.9 Value of Fit indices of second factor (Perceived 88
Informativeness)
Table 4.10 Value of Fit indices of third factor (Credibility) 89
Table 4.11 Value of Fit indices of forth factor (Good for the Economy) 90
Table 4.12 Value of Fit indices of fifth factor (Web Economies) 91
Table 4.13 Value of Fit indices of sixth factor (Materialism) 92
Table 4.14 Value of Fit indices of seventh factor (Value 93
Corruption/Distortion)
Table 4.15 Value of Fit indices of eighth factor (Attitude) 93
Table 4.16 Value of Fit indices of Ninth factor (Behavioral Response) 94
Table 4.17 Value of Fit indices of full measurement model 96
Table 4.18 Assessment of Internet users Constructs Reliability 96
Table 4.19 Summary of standardized factor loading 98
Table 4.20 Assessment of convergent and discriminant validity 99
Table 4.21 Descriptive Analysis Regarding Perceived Entertainment 99
Table 4.22 Descriptive Analysis Regarding Perceived Informativeness 100
Table 4.23 Descriptive Analysis Regarding Credibility 100
Table 4.24 Descriptive Analysis Regarding Good for Economy 101
Table 4.25 Descriptive Analysis Regarding Web-Economies 101
Table 4.26 Descriptive Analysis Regarding Materialism 102
Table 4.27 Descriptive Analysis Regarding Value Corruption/ Dis- 102
tortion
Table 4.28 Descriptive Analysis Regarding Attitude 103
Table 4.29 Descriptive Analysis Regarding Behavioral Response 103
Table 4.30 R2 for Endogenous Factors 104
Table 4.31 Hypothesis Testing 105
Table 4.32 ANOVA Results between GENDER and factors 111
Table 4.33 Descriptive Mean Score for Gender 111
Table 4.34 ANOVA Results between Marital Status and Factors 112
Table 4.35 Post-Hoc Analysis 113
Table 4.36 ANOVA Results between AGE and Factors 114
Table 4.37 Post-Hoc Analysis 115
Table 4.38 ANOVA Results between Education and Factors 120
Table 4.39 Post-Hoc Analysis 120
Table 4.40 ANOVA Results between Income and Factors 123
Table 4.41 Post-Hoc Analysis 124
Table 4.42 ANOVA Results between Occupation and factors 133
Table 4.43 Post-Hoc Analysis 134
Table 4.44 ANOVA Results between Residential Status and Factors 139
Table 4.45 Post-Hoc Analysis 140
Table 4.46 T-test results between Access to internet from home and 141
Factors
Table 4.47 T-test results between Access to internet from cyber cafe and 142
Factors
Table 4.48 T-test results between Access to internet from office and 143
Factors
Table 4.49 T-test results between Access to internet from other places 144
and Factors
Table 4.50 ANOVA Results between Internet Usage and Factors 145
Table 4.51 Post-Hoc Analysis 146
Table 4.52 ANOVA Results between Internet Using Experience and 149
Factors
Table 4.53 Post-Hoc Analysis 149
Table 4.54 ANOVA Results between Internet Using Skill and Factors 155
Table 4.55 Post-Hoc Analysis 156
Table 4.56 ANOVA Results between Gadgets used for internet surfing 158
and Factors
Table 4.57 Percentage Analysis of different purposes of using internet 161
and liking of internet advertisements at the time of using
internet for that purpose
Table 4.58 Frequency and Percentage of preference about position of an 162
ad on a web page
Table 4.59 Frequency & Percentage of effective medium of advertising 163
Table 4.60 Ranking of different advertising channel/medium with 164
reference to enjoyable, informative and annoying.
Table 4.61 Respondents having own website 165
Table 4.62 Percentage analysis of what respondents offer to their 166
customers/potential customers
Table 4.63 Percentage analysis of respondent’s main purpose of 167
advertising
Table 4.64 Percentage analysis of year of existence of respondent’s 168
organisation
Table 4.65 Percentage analysis of level of market for which 169
respondent’s orgaisation main product/service aimed
Table 4.66 Consideration for dividing the advertising budget on the 170
various media
Table 4.67 Value of KMO and Bartlett's Test 171
Table 4.68 Communalities 172
Table 4.69 Total Variance Explained by factors 173
Table 4.70 Values of Rotated Component Matrix 174
Table 4.71 Factor Loading, Naming of Factors and Cronbach’s Alpha 175
Table 4.72 Descriptive Analysis of all the statements of first extracted 179
factor Perceived Image/Image
Table 4.73 Descriptive Analysis of all the statements of second 179
extracted factor Attitude
Table 4.74 Descriptive Analysis of all the statements of third extracted 180
factor Competitive advantage
Table 4.75 Descriptive Analysis of all the statements of forth extracted 180
factor Cost reduction
Table 4.76 Descriptive Analysis of all the statements of fifth extracted 181
factor Good for Economy
Table 4.77 T-test Result examining the differences between advertisers 181
having own website or not having own website with regards
to five extracted factors
Table 4.78 Comparing mean score between advertisers having own 182
website and not having own website
Table 4.79 ANOVA Result examining the differences 183
among
advertisers advertising products, services and both regarding
five extracted factors
Table 4.80 ANOVA Result examining the differences among different 184
groups of year of existence regarding five extracted factors
Table 4.81 ANOVA Result examining the differences among local 185
market, national market and international market regarding
five extracted factors
Table 4.82 Post-hoc analysis 185
Table 4.83 ANOVA Result examining the differences among different 186
groups of main purposes of advertising regarding five
extracted factors
Table 4.84 Post-hoc analysis 187
Table 4.85 ANOVA Result examining the differences among different 188
groups of consideration for dividing the advertising budget on
the various media regarding five extracted factors
Table 4.86 Criticality of internet advertising as a part of advertising 189
strategy
Table 4.87 Descriptive Statistics regarding Factors Driving Internet 190
Advertising
Table 4.88 Ranking regarding problems associated with internet 192
advertising with reference to internet users
Table 4.89 Frequency pertaining to reasons for not collecting information 193
through internet advertising
Table 4.90 Frequency pertaining to blocking of any 193
advertisement/advertiser over internet
Table 4.91 Frequency pertaining to main reason for blocking of 194
advertisement/advertiser over internet
Table 4.92 Frequency pertaining to challenges or problems associated 195
with internet advertising with reference to advertisers
LIST OF FIGURES
S. NO. DESCRIPTION PAGE
NO.
Figure 1.1 Factors that Influence Perception 3
Figure 1.2 Classification of World's Internet Users (June 2017) 6
Figure 3.1 Outline of the study 75
Figure: 4.1 Access point to internet 81
Figure: 4.2 Internet Usage 82
Figure: 4.3 Internet Using experience 83
Figure: 4.4 Internet Using Skills 84
Figure: 4.5 Mean/gadget used for internet surfing 85
Figure: 4.6 Results of Testing the Hypothesized links 106
Figure: 4.7 Complete model for internet users with all the 107
measured variables
Figure: 4.8 Preference of position of an ad on a web page 162
Figure: 4.9 Effective Medium of Advertising 164
Figure: 4.10 Advertiser’s having own website 165
Figure: 4.11 What advertisers offer to their customers/potential 166
customers
Figure: 4.12 Advertiser’s main purpose of advertising 167
Figure: 4.13 Year of existence of respondent’s organisation 168
Figure: 4.14 Level of market for which respondent’s orgaisation 169
main product/service aimed
Figure: 4.15 Consideration for Dividing the Advertising Budget on 170
the Various Media
Figure: 4.16 Scree Plot 174
Figure: 4.17 Criticality of internet advertising as a part of 189
advertising strategy
Figure: 4.18 Motivational factors to advertise online 191
Figure: 4.19 Reasons for blocking of advertisement/advertiser over 194
internet