Advertising management influence effectiveness of online

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University of Halmstad

School of Business and Engineering

Master International Marketing

Advertising management influence

effectiveness of online advertising

--A study of white-collar workers in online

advertising context

Master’s Dissertation in International Marketing

Authors: Jin Ma 870705-T044

Handan Liu 800218-T157

Supervisor: Gabriel Baffour Awuah

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ACKNOWLEDGEMENT

This dissertation has been written during the spring semester of 2010 at Halmstad

University.

First of all, we would like to sincerely acknowledge to our supervisor Mr. Gabriel

Baffour Awuah. We have learned a great deal from his constructive suggestions and

valuable assistance for our dissertation, both in the seminars and supervisions.

Secondly, we want to express our gratitude towards all the students in the other two

seminar groups, particularly our opponents who also provide us with helpful advices.

Thirdly, we are extraordinary thankful to our friends who take part in our research as

respondents. We appreciate their time to complete the questionnaires which constitute

our emprical data.

Last but not least, we are much obliged to our parents for the spiritual support they

provide during the whole thesis-writing process. Despite the far distance between

China and Sweden, they always offer us with courage and confidence via phones and

online communication tools.

Halmstad, 2010

Jin Ma and Handan Liu

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ABSTRACT

Online advertising which is a new form of communication provides interactivity

between advertisers and consumers.

This dissertation is focusing on how advertising management influence the

effectiveness of online advertising.The theoretical framework of this study mainly

contains the advertising management and effectiveness of effects model.These two

models are combined together in an analytical model where a connection between the

two theories is explained that will be used as a foundation in gathering and analyzing

the empirical findings. The quatitative research strategy is appliedd in this dissertation.

Based on the questionnaies of white-collar workers, the empirical data was collected.

The conclusion which can be drawn from this study is that there is clear evidence that

good management will improve cognitive,affective and conative degree of consumer

behavior.

Key words: Online advertising, interactivity, advertising mangement, hirachy of

effectiveness.

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TABLE OF CONTENTS

1 Introduction ........................................................................................................................................... 6

1.1 Background................................................................................................................................. 6

1.2 Problem discussion ..................................................................................................................... 7

1.3 Research Purpose ....................................................................................................................... 8

1.4 Research Question...................................................................................................................... 8

1.5 Delimitation ................................................................................................................................ 8

1.6 Definitions .................................................................................................................................. 9

1.7 Previous studies and Earlier Research ........................................................................................ 9

2 Theoretical framework ........................................................................................................................ 11

2.1 Main steps in the management of advertising communication ............................................... 11

2.2 Hierarchy of effectiveness model ............................................................................................. 13

2.3 Traditional advertising VS online advertising ........................................................................... 14

2.4 Why the authors combine the preceding two models ............................................................. 17

2.5 Description of analytical framework ........................................................................................ 18

2.6 Hypotheses ............................................................................................................................... 22

3 Methodology ....................................................................................................................................... 23

3.1 Research strategy and approach .............................................................................................. 23

3.2 Data collection .......................................................................................................................... 25

3.3 Sampling ................................................................................................................................... 27

3.4 Data analysis ............................................................................................................................. 28

3.5 Validity and Reliability .............................................................................................................. 29

4 Empirical finding .................................................................................................................................. 30

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4.1 Sampling, source of data .......................................................................................................... 30

4.2 Questions regard to cognitive ................................................................................................... 30

4.3 Questions regard to affective .................................................................................................... 33

4.4 Questions regard to conative .................................................................................................... 35

4.5 Questions regard to management.............................................................................................. 37

5 Analysis ................................................................................................................................................ 40

5.1 The correlation between management and cognitive................................................................ 40

5.2 The correlation between management and affective................................................................. 44

5.3 The correlation between management and conative ................................................................. 47

6 Conclusions .......................................................................................................................................... 52

6.1 Conclusion and discussion ........................................................................................................ 52

6.2 Implications .............................................................................................................................. 53

6.3 Further Research ...................................................................................................................... 53

References .............................................................................................................................................. 54

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1 INTRODUCTION

1.1 BACKGROUND

Advertising has been existed for many decades. It is one means of promotional mix

which has its ultimate function to set up channels of information and persuasion to

sell goods and services or promote an idea (Belch & Belch, 1998; Aaker, 1991). As an

integral part of social and economic systems and one of the rapidly growing industries,

advertising determines the GDP (Gross domestic product), of a country to a

considerable extent during the late 1980s (Belch & Belch, 1998; Daniels, 1995).

Advertising is considered to be one of the marketing communication tools.

Communication is the process of giving or an exchange of information and the

science of transmitting information as well (Smith, 1993). In the world‟s complicated

society, advertising has developed into a significant communication system which

connects both consumers and businesses (Belch & Belch, 1998).

Advertising communication can be conveyed through various mass media which

include traditional media such as TV, broadcasting, magazines and newspapers (Belch

& Belch, 1998). In addition, Internet industry becomes a new medium for businesses,

especially provides a new living space for the growth and development of enterprises

(Jim Hamill, 1997). Therefore, online advertising which is a new type of advertising

has been explored since the information explosion dynasty is coming. It is also one of

the marketing communication tools (Doole and Lowe, 2008). When it comes to the

effects of advertising, they are considered to be an investment in a long term process

(Lavidge & Steiner, 1961).

According to Robinson et al. (2007), online advertising has grown significantly since

its beginning in 1994. From the article of E-Marketer, it is estimated that Internet

spending in China will reach $1.7 billion in 2009 and $3.5 billion in 2012, with a 24%

growth rate annually from 2007 till now (E-Marketer, 2009). Although in USA,the

amount of 2009 will be $25.7 billion (ibid), China has the most Internet users in the

world. Hence, online advertising opens up a door for companies to communicate with

customers and potential customers (Hofacker, 2000), which would be helpful for them

to promote sales in the fierce competition. Meanwhile, the advertiser should consider

how the consumers will interpret and respond to it (Belch & Belch, 1998), as

consumers are the receiver side of the communication.

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1.2 PROBLEM DISCUSSION

Online advertising is an emerging form of advertising which grows with the rapid

development of Internet and gradually becomes one of the most important advertising

medium. Berthona, Pitt and Watson (1996) mention Internet is a virtual place where

consumers interact with different advertisers. From Internet, advertisers can sustain

and enhance the relationship with consumers who come from worldwide, and

“represent a remarkable new opportunity for businesses to communicate with new and

existing markets in a very integrated way.” (Berthona, Pitt and Watson, 1996)

No matter which type of advertising, effectiveness is the only way to measure whether

the advertising is successful or not. Besides, it is a result of the media audience

reaction to advertising. Lavidge and Steiner (1961) propose a marketing

communication model in order to measure advertising effectiveness by consumer‟s

hierarchy of effects, stair-step from paying attention to advertised product, to be

interested in it, like and prefer it, then finally to be the real consumer. They also make

these factors into three main categories, including cognition, affection and conation

(ibid). This model becomes a widely accepted way to measure effectiveness of

traditional advertising. The measurement is largely based on a one-way view of

communication, the marketer‟s communication and consumer‟s respond (Stewart &

Pavlou , 2002).

However, with the advent of the Internet, a new type of interactive medium appears.

Still applying traditional approach to measure the effectiveness of interactive

medium--- online advertising may be incomplete (Stewart & Pavlou, 2002). They

indicate that traditional measures of the effectiveness of marketing communications

only emphasize on how advertisers and market influence consumers (ibid), thus the

measurement which focuses on effectiveness of how consumers react on advertising

in interactive context is very meaningful.

Interactivity is one of the most important characteristics of online advertising, as

Fortin and Dholakia (2003) point out that interactive marketing and advertising

technology can help consumer find the product which they need effectively, and

interactivity is more in line with an information processing perspective and supportive

of a uses and gratifications paradigm. Parsons, Zeisser and Waitman (1998) recognize

that the interactivity of internet can stimulate the user‟s interest when they surfing the

web, lead them to make purchasing decisions.

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Since the characteristics of interactivity are different from traditional advertising,

consumers can look for the information that they want to know by clicking the

hyperlink or using search engine. As Stewart and Pavlou (2002) mention that

consumers have more influence on the process of communication by their actions:

selecting, searching for, using, and responding. Thus, advertisers must deal with this

influence which consumers have on the interaction, and they have to change their

previous approach of traditional advertising, which means that they should consider

consumer behavior in almost the whole decision-making process.

1.3 RESEARCH PURPOSE

Compared with traditional advertising, online advertising is different that consumer

behavior affects steps of the online advertising management process. This paper

focuses on the influence of advertising management on effectiveness of online

advertising, based on the interactivity between consumers and advertisers. From

consumers‟ perspective, authors take white-collar workers as research target to

analyze the above-mentioned point of view.

1.4 RESEARCH QUESTION

The authors‟ main research question is as follows:

How does advertising management influence online advertising effectiveness?

1.5 DELIMITATION

The authors‟ research is delimitated to Chinese white-collar workers. As is known to

all, white-collar workers use the Internet frequently. Meanwhile, Chinese enterprises

prefer the online advertising for its saving of money. Therefore, it is worth taking

Chinese white-collars as research target to analyze their behavior on influencing

online advertising.

Meanwhile, from the authors‟ point of view, advertisers in this paper only refer to the

advertising department of the company, which provides products and services.

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The definition of „Good management‟ in this research is confined to effective

communication. As Tyagi and Kumar (2004) state, there are several major steps in

developing effective communications, which includes:

“(1) identify the target audience; (2) determine the communication

objectives; (3) design the message; (4) select communication

channels; (5) develop the total promotion budget; (6) decide on the

promotion mix; (7) measure the promotion’s results; and (8) manage

and coordinate the total marketing communication process”

(Tyagi &Kumar, 2004, p.74).

1.6 DEFINITIONS

In this dissertation, the definitions of the terms which are going to be frequently used

are as follows:

Advertising is: “the nonpersonal communication of information usually paid for and

usually persuasive in nature about products, services or ideas by identified sponsors

through the various media." (Bovee and Arens, 1992, p. 7)

Since Internet has become a communication platform, the frequent use of Internet

advertising emerges naturally. Online advertising, which is based on Internet

advertising, is a new medium with “the use of Internet and related digital technologies

to achieve marketing objectives…” (Chaffey et al., 2006)

There are several kinds of online advertising. Practically, online advertising is “the

use of a company web site in conjunction with online promotional techniques such as

search engines, banner advertising, direct e-mail and links or services from other web

sites to acquire new customers and provide services to existing customers…”(Chaffey

et al., 2006)

Newhagen and Rafaeli (1996) define interactivity as “a communication that reflects

back on itself, feeds on, and responds to the past”. Therefore, in the authors‟ research,

interactivity is defined as the communication between consumers and advertisers, for

example, advertiser affect consumer‟s habit and behaviors, while consumer also affect

advertiser‟s management.

1.7 PREVIOUS STUDIES AND EARLIER RESEARCH

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Internet advertising, which is a relatively new medium, has received attention from

both academics and practitioners, particularly from effectiveness aspect.

Teo etal. (2003) proposes a research model in order to investigate the influences of

interactivity level on web user‟s attitude towards commercial web sites. Afterwards,

the model has been tested and the results reveal that the increased level of interactivity

has positive effects on web user‟s perceived satisfaction, effectiveness, efficiency,

value, and overall attitude towards a Web site (Teo et al., 2003).

In the article of Bezjizn-Avery et al. (1998), the authors discuss that there are two

ways that can measure the effectiveness of the interactive media. One of them is the

persuasiveness of the media which indicates that whether consumers are positive in

affect, preferences, and purchase intensions (Bezjizn-Avery etal, 1998). The research

also provides practical suggestions on how to design effective online ads to fully

utilize the advantages of the online medium (ibid). Meanwhile, Patsioura et al. (2009)

have formulated an advertising effectiveness model for corporate advertising web

sites.

A great number of researchers, like Tyagi and Kumar (2004), have discussed the

subject of advertising management, from advertisers‟ perspective. However, the

authors‟ study focuses on how advertising management influences advertising

effectiveness, in the context of online advertising.

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2 THEORETICAL FRAMEWORK

2.1 MAIN STEPS IN THE MANAGEMENT OF ADVERTISING COMMUNICATION

Figure 1 Main steps in the management of advertising communication.

Source from: Usunier and Lee, 2009, pp.377.

Brand awareness

Brand image

Increase sales

Provoke first trial/rebuy

Build consumer loyalty

Problem to be solved

Implementation and

control

Creative strategy

Communication

objectives Target(s)

Media strategy

Identify the target

Sociodemographics

Consumer habits

How is the product used?

Let know

Let like

Let act

Copy strategy

Classical USP

“Star strategy”

One or several creations

Availability of media

Calculation of the optimal

Coverage of the audience

Agency/advertiser relationships

Pre- and post–testing /evaluation

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The management process for marketing communication should follow six steps which

should be taken in order (Usunier and Lee, 2009). The six steps are as follows:

1. The communication problems which marketers want to solve should be isolated.

The first step refers to the problems which exist in the marketing communication

process and are needed to be solved, such as improving brand awareness,

changing brand image, increasing sales and so on.

2. The target population should be identified.

The second step includes “the consumer segments to be targeted and their

sociodemographic characteristic, consumption habits, psychographic

characteristics” (Usunier and Lee, 2009), etc.

3. The marketing communication objectives should be defined “in terms of

influencing the target population, at either the attitudinal or the behavioral level”.

(Usunier and Lee, 2009)

Communication objectives contain persuading consumers to like the advertised

product, encouraging consumers to try the product again, educating the consumers

to accept the product, and so forth.

4. A creative strategy should be selected.

This step indicates the way which brand name is portrayed and how to translate

the objective into copy (Usunier and Lee, 2009). One or several creations could be

included as well.

5. A media plan should be designed.

Which media to be used and how to use it are included in media plan. Generally,

there are two kinds of media which consist of traditional media (e.g. TV,

broadcasting) and new media (e.g. online advertising).

6. The advertising campaign should be implemented.

The last step covers “pre and post testing of the advertisement effectiveness… and

research on different aspects…” (Usunier and Lee, 2009), etc.

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2.2 HIERARCHY OF EFFECTIVENESS MODEL

Lavidge and Steiner (1961) propose a marketing communications model, and it is

acknowledged that this model can predict advertising effectiveness in advertising

industry. They mention that advertising drives consumers‟ seven steps from

unawareness to reach the ultimate purchase: unawareness, awareness, knowledge,

liking, preference, conviction and purchase (Lavidge and Steiner, 1961). The latter six

steps are related to three main behavioral dimensions, cognitive, affective, and

conative. The cognitive component indicates awareness and knowledge, the affective

component indicates liking, preference and the conative (or motivational) component

indicates conviction and purchase (ibid). Measures taken before or after a form of

communication used will enable objective(s) to be set and the success of

communication to be analyzed. Logical progression through the stages is not always

possible – indeed, much depending on the product or service being offered and the

target group of receivers (ibid).

Figure 2 Hierarchy of effect model. Source from: Lavidge and Steiner, 1961, p.61

Compared with traditional advertising, online advertising changes a lot, for instance,

channels of communication, manifestation mode, but this model can also measure

effectiveness of online advertising.

Cognitive

Affective

Conative

Awareness

Purchase

Conviction

Preference

Liking

Knowledge

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Consumer's behavior Effectiveness

Conative Purchase Conversion and Conversion Rate

Conviction Frequency on search engine or online shops

Affective Preference Hits on web of specific brand

Liking Click-through rate

Cognitive Knowledge Interactive advertising, Hyperlink

Table.2 Source from: Research report on the web advertising Q3, 2000,

http://www.adknowledge.com )

2.3 TRADITIONAL ADVERTISING VS ONLINE ADVERTISING

The rapid growth of online advertising poses a challenge to the dominating position of

traditional advertising. There are different communication models resulting from the

application of the digital medium and some different factors between new and old

media as well (Dave, Richard, Kevin & Fiona, 2000).

Old media New media Comment

One-to-many

communication model

One-to-many or

many-to-many

communication model

Hoffman and Novak (1996) state

that theoretically the Internet is a

many-to-many medium, but for

company-to-consumer

organization, communications it is

best considered as one-to-one.

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Mass marketing push

model

Individualized

marketing or mass

customization. Pull

model for web

marketing

Personalization possible because of

technology to monitor preferences

and tailor content (Deighton. 1996)

Monologue Dialogue Indicates the interactive nature of

the world wide web, with the

facility for feedback

Branding Communication Increased involvement of customer

in defining brand characteristics.

Opportunities for adding value to

brand

Supply-side thinking Demand-side thinking Customer pull becomes more

important

Customer as a target Customer as a partner Customer has more input into

products and services required

Segmentation Communities Aggregations of like-minded

consumers rather than arbitrarily

defined target segments

Table 1: Dave, Richard, Kevin & Fiona, 2000; After Kiani, 2000, p. 33

Table 1 presents some differences between traditional and online advertising.

The traditional advertising model is a one-to-many communication model. Companies

should know the target audience they want to reach firstly, then send the related

message to consumers by effective communication medium, and for the purpose of

getting the response from consumers, companies must establish a reasonable channel.

In the whole process, advertisers seem to play a monologue, they try to advertise in an

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impressive way, select a suitable medium, describe the advantage of certain brand, in

order to give a strong impression on the audience, as Janoschka and Anja (2004, p 32)

point out, and advertising is purposeful, advertising campaign intends to give

audience a good image, and it can help firm increase on sales and profit. In most

situations, traditional advertising tries to change or influence consumers‟ attitudes, to

persuade consumers to buy product A instead of product B (Janoschka & Anja, 2004;

Jefkins & Yadin 2000: 15). The consumer is a negative receiver in this whole process

which means that consumer cannot respond immediately.

Online advertising can be one-to-many or many-to-many model. Compare with

traditional advertising, online advertising has some obvious features as follows:

Interactive, is the natural feature of the Internet, with the facility of feedback.

The consumers are not negative receivers anymore, they become more important,

exactly, the partner of the advertiser.

Rich information, if consumers are interested in the product, they will click

on the advertisement, and then they will get more information from related web

site. This will help consumer know the product more, and add value to the brand.

Communication, just interested customers will click the advertising and get

more information, as Dave et al. (2000) mention, “Aggregations of like-minded

consumers rather than arbitrarily defined target segments”, online advertising is

easier to find good consumers. Consumers here explore the information actively.

As the authors discuss above, audiences do not only receive the information, but they

also explore the information which they need, meanwhile, advertisers should be also

active when audiences have interest in their product, and they will do their utmost to

persuade audiences to buy their product. Thus one of the most significant differences

is interactivity. Consumers have more influence on advertisers in interactive context,

and unlike traditional advertising which concentrates on how advertisers and market

influence consumers, advertisers must manage certain respond well, present the

product‟s function, advantages or disadvantages and other details which consumer

need and lead them to purchase. Therefore online advertising is better used of logical

and convincing advertising.

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2.4 WHY THE AUTHORS COMBINE THE PRECEDING TWO MODELS

Compared with traditional medium, the key characteristics of online advertising is

interactivity, which means consumers are not passive affected by advertiser anymore,

and for now, consumer‟s behavior can affect advertiser immediately. If consumers are

interested in online advertising, they will read the advertisement carefully, click on

the advertisement, enter advertiser‟s website, and get more information about the

product, and even place the order online. It can be found that consumers occupy

initiatively in the whole process, with all behavior depending on their own motivation

and desire, all of these elements have a great influence on advertising effectiveness.

With the help of Hierarchy of effectiveness model, consumers‟ behavior can be

divided into 6 steps after consumers‟ watch online advertising: awareness,

knowledge, liking, preference, conviction and purchase (Lavidge and Steiner, 1961).

Therefore, being aware of the existence of the product, searching for related

information on the website, getting more knowledge of it, beginning to like it till have

passion for it, ensure the purchase necessary and finally do it. All above should be

explored in online advertising context.

Usunier and Lee (2009) point out an empirical model of the whole process of

advertising management. The model starts with problem that the company would like

to solve, and ends up with how advertising affect in the communication process, and

tries to find a good solution to achieve the aims.

After looking into these two models above, the authors of this study find that there is

a very close relationship between them; the most influential factor is interactivity. It is

argued that “researchers have noted that the quest for improving interactivity guides

future technological development for the Web” (Ha & James, 1998; Robb et. al, 1997).

On account of interactivity can expand the role of consumer participation, it can help

advertiser to build a stable relationship with consumers, and stable relationship can

help advertiser increase sales and promote development (Hoffman et al, 1995).

In this paper, the authors develop three main hypotheses describing the relationship

between these two models, after that, the authors test the hypothesis by questionnaires,

aiming to find out how advertising management influences online advertising

effectiveness.

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Interactivity

Online Advertising

Advertiser Consumer

2.5 DESCRIPTION OF ANALYTICAL FRAMEWORK

Figure 3 The interactivity between consumer and advertiser in the online advertising

communication (Usunier and Lee，2009，p.377；Lavidge and Steiner, 1961, p.61),

suggested by the authors

Based on the model of the six main steps in the management of advertising

communication which is proposed by Usunier and Lee (2009), the authors of this

paper make some modifications. As the authors discussed, Internet is the medium in

online advertising process. In other words, the media strategy, which is definite in the

study, is performed as online advertising. Therefore, there are five steps in advertising

management which includes Problem to be solved, Target(s), Communication

objectives, Creative strategy, Implementation and control accordingly.



Targets

Communication objectives

Creative strategy

Implementation and control

Conative

Affective

Cognitive

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Through advertising, marketers are willing to solve problems that exist in the

marketing process. Basically, one of the major objectives of online advertising is to

generate sales directly, as marketers can sell products or services directly to the

consumer (Belch & Belch, 1998). Besides, creating and maintaining brand awareness

is also the goal of advertising in the case of low interest or involvement (McMahan,

1980). Aaker (1996) argues that there are four components that form brand equity:

brand awareness, perceived quality, brand loyalty and brand associations. Among

them, brand awareness and brand loyalty are two key problems that need to be solved

in online advertising.

Brand awareness means the strength of the brand‟s presence in the target‟s mind. In

order to be successful in an industry which focuses on the same product, the brand

must dominate others (Aaker, 1996). It can be presumed that awareness will help

advertisers to keep the brand in the consumer's evoked set, hence rise up the

possibility that the brand will be purchased (Hoyer & Brown, 1990).

Brand loyalty could drive long-term success (ibid). Lots of researchers have studied

on brand loyalty, especially the relationship between brand loyalty and repeat

purchasing behavior which could be called as rebuy. In situations involving common,

repeat-purchase products, consumers may choose a brand on the basis of a simple

heuristic (e.g., brand awareness, pricing, and packaging) and then evaluate the brand

subsequent to purchase (Hoyer & Brown, 1990)

Jacoby and Kyner (1973) build up a conceptual definition of brand loyalty. The

definition is delivered by six necessary and sufficient conditions.

They are:

“(1) the biased (i.e., nonrandom), (2) behavioral response (i.e., purchase), (3)

expressed over time, (4) by some decision-making unit, (5) with respect to one or

more alternative brands out of a set of such brands and (6) is a function of

psychological (decision-making, evaluative) processes.”

Target(s)

It is hard to determine the certain audience who are watching traditional

advertisement, e.g. advertisement on TV. In contrast, online advertising has the ability

to target specific audience, along with the least waste coverage (Belch & Belch, 1998).

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For instance, by means of world-wide biggest search engine Google, advertisers can

decide to target customers in any state, city or region, at the same time, the online

advertisement is only shown to customers reading about or searching for related

products or services (Google, Ad Words). Therefore, with the exact target, advertisers

can reach the most potential consumers who are more probable to make purchasing

decisions through online advertising.

Under online advertising context, the target audiences act as receivers who process

the message they receive with the foundation of personal experience and personal

characteristics (Tyagi &Kumar, 2004). The significant personal characteristics

comprise comprehension, level of involvement and psychological noise (Tyagi

&Kumar, 2004).

According to Tyagi and Kumar (2004), comprehension refers to the quantity of

consumer‟s motivation and the message. The consumer‟s level of involvement is

pivotal in the attention which is paid to the online advertisement (Tyagi &Kumar,

2004).

Psychological noise is a barrier that occurs to online advertisement reception (ibid).

Sometimes advertisers can become a victim of psychological voice due to different

kinds of reasons. In order to deal with noise, the advertisers should repeat showing

advertisements several times to ensure that the advertising message is received (ibid).

Communication objectives

Since communication objectives are the impacts of target population, whatever on

attitude and behavior, there are possible objectives including the following parts:

increasing consumers in the target market who associate specific features, benefits, or

advantages with brand; increasing the number of consumers in the target audience

who prefer the product over the competition‟s; attracting current users of the product

to use it more frequently or in more situations; attracting consumer who have never

used the brand to try it (Usunier and Lee, 2009; Belch & Belch, 1998).

In this part there is no evident difference between traditional advertising and online

advertising, in that both of them have the purpose of letting consumers know, like and

act with the advertised product. Nevertheless, the biggest distinction is the

interactivity between consumers and advertisers. As the authors explained earlier, in

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traditional advertising process, advertisers merely send the unilateral information. It

becomes difficult to receive the response of consumers at once, as advertisers do not

know what information consumers need.

With the help of hierarchy of effectiveness model (Lavidge and Steiner, 1961),

cognitive, affective and conative are 3 steps of consumers‟ behavior, if the advertiser

wants to convince consumer to buy the product, they must let consumer know the

function of product, or what merits the product has. In other words, the advertiser

cannot skip the cognitive part, enter into the affective part directly. Meanwhile,

consumers‟ attitude will also affect communication objectives. Lutz (1985) points out

that the belief in the advertised product itself is the attitude of personal preference.

Consumer‟s likeness or dislikenness of advertising will definitely affect their behavior.

As Mitchell & Olson (1981) conduct, the attitude of consumer affects consumer‟s

perceptions of brands, and determines whether they will purchase or not.

Creative strategy

A creative strategy is “a policy or guiding principle which specifies the general nature

and character of messages to be designed” (Frazer, 1983). Every successful

advertisement could have creativity in its management process. It could be also

referred to the capacity of collecting creative ideas that can be applied to solve the

problems (Belch & Belch, 1998). Besides, a creative strategy focuses on what the

advertising message interprets or communicates and guides all of the messages used

in the advertising campaign in the developing process (Lee and Johnson, 2005).

There are several alternative creative strategies which are suitable in different

conditions. Take the unique selling-proposition approach (USP) for example, it is

most useful when difference cannot be readily matched by competitors (Frazer, 1983).

Under this circumstance, competitive implications are achieved. An advertiser can

obtain strong persuasive advantage and may force competitors to choose more

aggressive strategy (e.g. positioning), meanwhile, the advertiser makes a superiority

claim based on a unique product attribute which stands for a meaningful, distinctive

consumer benefit (Frazer, 1983; Lee and Johnson, 2005).

However, creative person or team should obtain knowledge from everyone who is

related to the product, including engineers, salespeople and consumers (Belch &

Belch, 1998). According to Griffin (1993), there are 8 points that are considered to be

essential parts of the creative strategy. The target audience and the audience‟s

problem: like what they miss or lack, are two of them. Inputs to the creative process

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could be considered from two aspects which both need information from target

audience (Belch & Belch, 1998).

Implementation and control

During the communication process, the receiver‟s reaction to the message is called a

response (Belch & Belch, 1998). Based on this definition, feedback which is a part of

the receiver‟s response will be sent back to the sender (Belch & Belch, 1998). In

online advertising, new pattern of communication is interactive so that the audiences

can provide direct feedback (Tyagi &Kumar, 2004, p72). It is helpful for sender to

monitor and control the message. Feedback which is based on research analyzes the

recall of ads, message comprehension and other responses and with feedback, the

advertiser can know better about the reasons of success or failure and adjust the

advertisements as well (Belch & Belch, 1998).

Numerous appeals can be considered as the basis of advertising messages, as they can

be used in adverting development and issues that appear in effective advertising

communication (Belch & Belch, 1998). Generally, the appeals are divided into two

categories: informational appeals and emotional appeals. The first appeal concentrates

on consumer‟s practical and functional need for product and emphasize on the

benefits of owning a specific brand (Belch & Belch, 1998). The second appeal

focuses on consumer‟s social or psychological needs for a product because the

motivation of consumer‟s buying a product is emotional (ibid).

A variety of criteria can evaluate the creative approach proposed by the advertiser.

Belch and Belch (1998) discuss some basic criteria in terms of questions, such as: is

the creative approach consistent with the advertising objectives and creative strategy? ,

and is the creative approach communicate a convincing message to the consumer?

2.6 HYPOTHESES

The authors formulate 3 hypotheses from the analytical framework (see Figure 3)z

discussed previously.

Consumers‟ behavior can be divided into 3 steps according to gradual advance:

cognitive, affective and conative phases (Lavidge and Steiner, 1961). If the

advertisers want to lead consumers to purchase through their good management, they

will let consumers be aware of the function of product or the merits of the product

firstly. Therefore, hypothesis 1 is proposed as follows:

~ 23 ~

H1: Good management will improve cognitive

degree of consumer behavior.

The interactivity exists between consumer behavior and advertisers in online

advertising process. Consumers receive the message of an online advertisement after

they watch it, and they have their own impressions of it. For example, the

advertisement is attractive, or impressive, or does not fascinating at all. Consequently

good management will improve consumers‟ likeness or dislikenness in the advertised

product.

H2: Good management will improve affective


As Mitchell & Olson (1981) conduct, the attitude of consumer affects consumer‟s

perceptions of brands, and determines whether they will purchase or not. The

interactivity which the authors believe indicates that consumers‟ feedback of online

advertising will affect advertisers as well and advertisers will make adjustments and

alterations in order to drive consumers to the degree of conviction or purchase. Thus,

it is hypothesized that:

H3: Good management will improve conative


3 METHODOLOGY

3.1 RESEARCH STRATEGY AND APPROACH

As to research strategy, quantitative research and qualitative research are two

distinctive methods for collecting data. Firestone (1987) presents some differences

between these two kinds of methods.

Assumptions about the world. Quantitative research which is based on

the perspective of the positivists assumes that social facts have already been

existed in reality, and it will not be changed by the beliefs of individuals.

Qualitative research which is built on the phenomenon deems that reality is

~ 24 ~

socially constructed through individual or collective definitions of the

situation (Firestone, 1987; Taylor & Bogdan, 1984).

Purpose. Quantitative research tries to explain the essential reason of

social facts by measurement and quantitative analysis. Qualitative research

attempt to understand social phenomenon by analyzing actor‟s perspectives

and behaviors.

Approach. Experimental or correlational designs are always applied in

quantitative research in order to reduce errors, bias, and other noises, so that

clearly perceiving of social facts can be attained (Firestone, 1987; Cronbach,

1975). Qualitative research study which is on the basis of the research of

ethnography helps the reader understand the definitions of the situation

(Firestone, 1987; Goodenough, 1971).

Researcher role. The ideal quantitative researcher is detached to bias.

The qualitative researcher becomes "'immersed" in the phenomenon of

interest (Firestone, 1987; Powdermaker, 1966).

To sum up, qualitative research can be construed as a research strategy that usually

emphasizes on words rather than quantification in the collection and analysis of data

(Bryman and Bell 2007). However, quantitative research which entails a deductive

approach can be construed as a research strategy that focuses on quantification in the

collection and analysis of data (ibid).

The quantitative research strategy and a deductive research approach are used in this

study, which is adapted to provide a deep understanding for how good management

affects online advertising effectiveness. Deductive theory refers to the commonest

view of the nature of the relationship between theory and research (Bryman and Bell

2007).

The process of deduction begins with theory and hypotheses. After collecting data,

there will be findings for the authors to figure out whether the hypotheses are

confirmed or rejected (ibid). The clear process of deductive is as follows:

~ 25 ~

Figure 3.1 The process of deduction, Bryman and Bell (2007), p.11, fig 3.1.

3.2 DATA COLLECTION

Both primary and secondary data are collected in this study. There are various

sources for collecting secondary data, such as books which are borrowed from the

school library, marketing journals which are searched from databases, and reports

from official websites. As Bryman & Bell (2007, pp 326) presents, it is possible to

use secondary data combined with primary data, such as experts‟ evaluations.

The primary data is collected for analyzing the research question. A questionnaire is

designed according to the analytical framework and sent to white-collar workers.

In this study, a self-completion questionnaire is designed and surveyed on the internet.

The reason lies in the fact that Bryman & Bell (2007) states as follows: no interview

available, self-completion questionnaire and structured interview are very similar in

business research (ibid). It is impossible to interview so many consumers in the

authors‟ research, thus self-completion questionnaire is chosen by the authors;

questionnaire is convenient to responder because they can finish the questionnaires in

different places and time when they want.

Bryman & Bell (2007) also mention that web survey is a format which has low costs,

faster response and attractive element. Thus it is suitable for the authors because the

authors are both student in Sweden now, at the same time, it is very hard to pay a lot of

~ 26 ~

money and time to hand out all the questionnaires to Chinese white-collar workers

through traditional ways, such as post, face to face and so forth.

The authors use a special professional website Askform to distribute questionnaire, the

hyperlink of the questionnaire is

http://www.askform.cn/68210-74366.aspx

Totally twenty questions in Chinese are posted in the questionnaire, with the English

version in the appendix. The authors sent this hyperlink to their friends and family

members who are all white-collar workers.

White-collar workers in the authors research refers to persons who engaged in

mental work and usually they work in office, such as engineer, teacher, office clerk

and so forth.

The process of questionnaire distribution and collection presents in Figure 3.2

Figure 3.2 The process of questionnaire distribution and collection

The Likert scale, which is commonly used in questionnaires and survey research, is

a psychometric scale (Uebersax, 2006). When it comes to a Likert questionnaire

item, the respondents state their level of agreement from five levels: Strongly agree,

Somewhat agree, Neither agree or disagree, Somewhat disagree, and Strongly

disagree (Uebersax, 2006; Likert, 1932). Meanwhile, Likert scale is adopted for

http://www.askform.cn/68210-74366.aspx

~ 27 ~

computer analysis (Bryman & Bell, 2007). Therefore, the authors use Likert scale

while designing questionnaires.

3.3 SAMPLING

Bryman and Bell (2007) indicate that sample means “the segment of the population

that is selected for investigation”. It is a subset of the population. The method of

selection may be based on a probability or a non-probability approach.”

Probability sample are defined as “one for which every unit in a finite population has

a positive probability of selection, not necessarily equal to that of other units

(Schreuder, Gregoire & Weyer, 1999).” The main types of probability sample are

simple random sample and systematic sample. If simple random sample is used, each

unit will has equal chance of being included in the overall sample. When choosing

systematic sample, units should be selected directly from the sampling frame, without

resorting to a table of random numbers.

Non-probability approach is defined as “essentially an umbrella term to capture all

forms of sampling that are not conducted according to the canons of probability

sampling outline above. (Bryman and Bell ,2007, PP 197).” It includes convenience

sampling which is simply available for researchers; snowball sampling which makes

initial contact with a small group of people who are relevant to research, and then let

these people to contact with other relevant people; and quota sampling which

produces a sample of relevant categories, afterwards chooses equal number from each

category (Bryman and Bell , 2007).

As a matter of fact, sample choosing could be time consuming and costly, so,

consideration of sampling size are likely to be affected by matters of time and cost at

such a juncture (Bryman & Bell, 2007).

After comparing two approaches, the authors adopt non-probability which is a set of

snowball sampling in this study. They try to send the questionnaire to their friends

who are white-collar workers, and their friends help the authors send the hyperlink of

the questionnaire to other white-collar friends. In order to avoid repeatability, before

answering the questionnaire, there is a “name” with blank for the respondents to fill in.

Take limitation of time and money as well as return rate into consideration, and

convenience sampling method was used to collect the primary data. More than three

hundred questionnaires were distributed and 145 effective samples were collected.

~ 28 ~

The respondents were from Shanghai, Hangzhou, Ningbo, Peking and other China's

major cities.

3.4 DATA ANALYSIS

The software SPSS will also be used in analyzing data which are collected from

questionnaires. The mean value, standard deviation, descriptive and factor analysis will

be adapted to measure and compare different answers. Other kinds of analysis index

will be applied in future analysis such as Cronbach‟s alpha and Pearson‟s Correlation.

Cronbach‟s alpha

Cronbach's alpha is an index of reliability associated with the variation accounted for

by the true score of the underlying construct, and construct is the hypothetical variable

that is being measured (Hatcher, 1994). Cronbach‟s alpha is used to measure the

correlation between the variables and get the reliability of the results. Reliability

coefficient normally ranges between 0 and 1, and George and Mallery (2003) discuss

the rules of thumb as follows:

“ > .9 – Excellent,

> .8 – Good,

> .7 – Acceptable,

> .6 – Questionable,

> .5 – Poor, and

< .5 – Unacceptable” (George and Mallery, 2003, p. 231).

Pearson‟s Correlation

Pearson‟s Correlation is used to evaluate the linear relationship between two variables.

The correlations are between -1 and 1. When the correlation is below 0, there is a

negative correlation; when it is over 1, there is a positive correlation; when it equals 0,

there is no correlation between two variables at all (Hunt, 1986).

~ 29 ~

With the use of Pearson‟s correlation, some internal connections with each statement

in each hypothesis will be evaluated. Therefore, which statement affect the hypothesis

more will be identified (Hunt, 1986).

3.5 VALIDITY AND RELIABILITY

Reliability and validity are the most prominent criteria for the evaluation of business

and management research (Bryman & Bell, 2007).

Validity is “whether or not an indicator that is devised to gauge a concept really

measures that concept”, and it focuses on if theory data are close to the phenomenon

(ibid). According to the statistical report on the development of Internet which is

conducted by China Internet Network Information Center in 2008, besides students,

white-collar workers are the second largest group which constitutes the Internet users

proportion (CINIC, 2009). Therefore, the respondents of this research are white-collar

workers. The authors send out questionnaires which are designed on the basis of the

analytical framework. Hence the primary data are gathered from white-collar workers

directly. In addition, the questions are easy to be understood since it is clear and

intelligible.

Reliability means the degree of stability of concepts measurement and includes four

aspects: stability; correlation which is a measure of the strength of the relationship

between two variables; internal reliability which shows whether or not the

respondents‟ scores on any indicator tend to be related to their scores on other

indicators; and inter-observer consistency (Bryman & Bell, 2007, ch6). In this paper,

some classic and empirical theory and data has be used, and it is also tested in

previous researches. Furthermore, both authors are participating throughout the

investigation.

~ 30 ~

4 EMPIRICAL FINDING

4.1 SAMPLING, SOURCE OF DATA

In this paper, the authors combine two models which are management of online

advertising communication model and Hierarchy of effectiveness model. These two

models are applied to measure how advertisers communicate with consumers and how

advertisers affect consumers separately.

The proportion of white-collar workers who come from different positions is as figure

4.1.

Figure 4.1 the proportion of white-collar workers’ position

4.2 QUESTIONS REGARD TO COGNITIVE

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4.2.1 Before I watch the advertisement, I already have awareness of the advertised

product (Q1, awareness).

Figure 4.2.1 Question concerning awareness

It seems that many respondents did not know the advertised product before they

watch the advertisement. The mean 2.92 indicates that there are also some people who

have already known the product before, and the ratio is much closer to half and half.

Meanwhile, the standard deviation 1.038 presents that there are not too many

differences among consumers.

4.2.2 Through online advertising, I have known more about this product (Q2,

knowledge)

Figure 4.2.2 Question concerning knowledge

This question focuses on the effectiveness of online advertising through watching the

advertisement. The diagram presents that most respondents get to know the product,

~ 32 ~

such as its function, performance, sales information and so forth. The mean is better

than 3 indicates that most respondents agree that online advertisement can help them

get knowledge of the product, while some people do not agree with it. They just

watch the advertisement, and do not get any new knowledge.

4.2.3 I have remembered the brand of the advertisement (Q3, brand awareness)

Figure 4.2.3 Question concerning brand awareness

This question also deals with consumer‟s effectiveness, with more than 70 percent of

the responders agree with this view, at least it is neutral. The mean is better than three,

means many people agree with this point. However, it is not so strong, because some

responders do not remember the brand. The standard deviation is less than 1, and it is

clearly that with choosing 3 and 4 scale, most responders can remember the brand of

product.

4.2.4 I will click on the link or website of the advertising (Q4, obtain more

knowledge)

Figure 4.2.4 Question concerning obtain more knowledge

~ 33 ~

If the consumer is interested in the advertised product, he or she will click the

hyperlink in order to get more information about this product, such as function,

feature, shape and so forth. The diagram shows that most responders do not want to

click the online advertisement. The mean 2.76 and standard deviation 1.107 shows

that some people will click and there are not too many differences among responders.

4.3 QUESTIONS REGARD TO AFFECTIVE

4.3.1 This advertisement is very attractive to me (Q7, liking)

Figure 4.3.1 Question concerning liking

There are still more than fifty percent respondents choosing neutral. The diagram

shows that most respondents partly enjoy online advertising with mean 3.01 and

standard deviation 0.975 which is very close to 1, presenting that there are not too

many differences among respondents.

4.3.2 This advertisement impresses me a lot (Q8, preference)

Figure 4.3.2 Question concerning preference

Respondents who choose neutral are very close to fifty percent. Many respondents

think online advertisement just impresses them a little, and some people think they

~ 34 ~

will not be affected or be greatly influenced by online advertisement. Standard

deviation 0.971 which is also very close to 1 presents there are not too many

differences between respondents.

4.3.3 Generally speaking, I like this online advertisement (Q11, overall liking)

Figure 4.3.3 Question concerning overall liking

Many responders‟ choices are neutral, so they do not clearly know they like this

online advertisement or not. The mean 3.03 shows that people who agree on this

statement have a little positive effect. There are not so many different opinions among

the responders.

4.3.4 I like the product after I watch the advertising (Q5, interest in related product)

Figure 4.3.3 Question concerning interest

More than fifty percent of the respondents choose neutral. It indicates that most

people do not know whether they will like or dislike the product just through the first

impression, and they may need more information to enjoy it. There is no clear

~ 35 ~

evidence to get the results of responders will like the product after they saw the

advertising.

4.4 QUESTIONS REGARD TO CONATIVE

4.4.1 If I need, I would consider buying this product (Q12, identifying demand)

Figure 4.4.1 Question concerning identifying demand

The responders‟ answers focus on the degree of 3 and 4, which indicate that most

responders agree or partly agree that they will buy the product if they need it. The

mean of 3.15 shows that more responders agree than disagree with this statement and

standard deviation of 1.03 presents there are not too many differences.

4.4.2 I plan to buy the product (Q13, conviction)

Figure 4.4.2 Question concerning conviction

Although respondents will take purchase into account if they need the product, most

respondents disagree that they really plan to buy the product. The mean of 2.77 and

~ 36 ~

standard deviation of 0.993 indicate that most respondents agree that they do not have

specific plans to buy the product.

4.4.3 It will be more likely for me to buy other products of this brand (Q14, more

demand)

Figure 4.4.3 Question concerning more demand

There are no apparent proofs showing that responders will buy other products of the

advertised brand. As most responders choose neutral and partly or do not agree. The

mean 2.86 and standard deviation 0.943 point out that most responders do not agree

with this statement, only some people partly or completely agree on that.

4.4.4 I think I will rebuy the product (Q15, repurchase)

Figure 4.4.4 Question concerning repurchase

~ 37 ~

The answers refer to negative part, such as I do not agree, partly agree. Most of the

responders do not think they will buy the advertising product again. The mean 2.77

and standard deviation 0.993 present that their consensus that they do not think they

will rebuy the product.

4.5 QUESTIONS REGARD TO MANAGEMENT

4.5.1 After watching the advertising, I want to get more information about this

product. (Q5, management of problem to solve and communication objective)

Figure 4.5.1 Question concerning good management of problem to solve and communication

objective

This question refers to the new feature of online advertising. As in online advertising

context, if consumers are interested in the advertised product, they can get more

details of the product through many ways. The ratio is quite equal in the diagram,

which reveals that many people will do some actions to get more information. The

mean between 3 and 4 indicates that most people agree but not too many.

4.5.2 The advertisement contains a huge amount of information (Q9, management of

targets)

Figure 4.5.2 Question concerning good management of targets

~ 38 ~

As the authors discuss before, rich media is another important element of online

advertising. Most responders‟ choices are neutral, they can only get part of the

information of the advertised product, so they do not agree that online advertising

contains a huge amount of information. The mean is a little bit less than 3 and

Standard deviation is 0.968, which states that less people agree on this question and

they do not have differences.

4.5.3 After watching online advertising, I associate with other ads (Q10, management

of creative strategy)

Figure 4.5.3 Question concerning good management of creative strategy

The association with other advertisements receives a lot of agreements, and most

responders think they will have that association after they watch the online

advertisement. The mean of 3.24 indicates most responders agree with this statement,

and Standard deviation of 0.981 presents there are not too many differences.

4.5.4 I think the advertised product is in accord with the real product (Q16,

management of implementation and control)

Figure 4.5.4 Question concerning good management of implementation and control

~ 39 ~

More than fifty percent consumers choose neutral, most responders do not agree with

advertised product will be in accord with the real product, so there is no clear

evidence to get the results. The mean of 2.97 indicates less responder agrees with this

statement, and Standard deviation of 0.953 presents there are not too many

differences.

~ 40 ~

5 ANALYSIS

This research analyzes how online advertising management affects effectiveness of

online advertising from white-collar workers perspective.

The result of the study has revealed that good management which advertisers carry

out will improve consumer‟s cognitive, affective and conative stages. Formulating the

analytical model which combine Lavidige and Steiner‟s (1961) model and Usunier

and Lee ‟s (2009) advertising management model with some modifications, the

authors put forward 3 hypotheses and test them on the basis of the collected data from

a sampling of 145 white-collar workers.

5.1 THE CORRELATION BETWEEN MANAGEMENT AND COGNITIVE

Hypothesis 1 is supported by statistical analysis. It is hypothesized that good

management of advertisers will improve cognitive degree of consumers by online

advertising. Lavidge and Steiner (1961) discuss about the stage of cognitive

component which can be divided to unawareness, awareness, and knowledge, thus be

aware of the existence of the product, search for related information on the website,

get more knowledge of it will be the whole process in consumers‟ cognitive phase.

McMahan (1980) indicates that creating and maintaining brand awareness is one of

the goals of advertising. In addition, Aaker (1996) also points out that brand

awareness means the strength of the brand‟s presence in the target‟s mind. In order to

be successful in an industry which focuses on the same product, the brand must

dominate others. Obviously, it is very important for advertisers to give consumers

certain information, lead them get awareness and brand awareness.

Under online advertising context, the target audiences act as receivers who process

the message they receive with the foundation of personal experience and personal

characteristics (Tyagi &Kumar, 2004). Hence, the massive amount of information is a

significant factor which helps consumers to choose the product even though it is not

designed for them initially.

Usunier and Lee (2009) present awareness, let consumers know as one of the

communication objectives. Increasing consumers in the target market who associate

specific features, benefits, or advantages with brand; increasing the number of

~ 41 ~

consumers in the target audience can also be included in communication objectives

(Usunier and Lee, 2009; Belch, 1998).

Since creative strategy focuses on what the advertising message interprets or

communicates and guides all of the messages used in the advertising campaign in the

developing process (Lee and Johnson, 2005). Thus the information from consumers‟

reaction in the context of implication and control has a significant impact on the

whole advertising management process. Besides, advertisers can measure the

information which consumers need by consumers‟ direct feedback such as telephone,

forum of web or some other technical means such as click rate and so forth.

With the purpose of being understood easily, the authors combine all cognitive

variables to a new variable “cognitive”. As the internal correlation in Table 5.1.1

shows, there is a very high correlation between “cognitive” and other variables. In

other words, it can be accepted that this “cognitive” variable can represent overall

variables of the cognitive component.

Table 5.1.1 Internal Correlations

cognitive awareness knowledge

brand

awareness

obtain more

knowledge

cognitive Pearson Correlation 1 .703** .688

** .760

** .791

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

awareness Pearson Correlation .703** 1 .244

** .435

** .375

**

Sig. (2-tailed) .000 .003 .000 .000

N 145 145 145 145 145

knowledge Pearson Correlation .688** .244

** 1 .326

** .463

**

Sig. (2-tailed) .000 .003 .000 .000

N 145 145 145 145 145

brand

awareness

Pearson Correlation .760** .435

** .326

** 1 .484

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

obtain

more

knowledge


** .463

** .484

** 1

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

**. Correlation is significant at the 0.01 level (2-tailed).

Cronbach‟s Alpha scores 0.709 which is more than 0.7 indicates the strong reliability,

~ 42 ~

and the opportunity to approve the hypothesis.

Table 5.1.2 Reliability Statistics

Cronbach's Alpha N of Items

.709 5

As Table 5.1.3 and Table 5.1.4 shows, the authors test the Pearson correlation and

make the regression analysis. The correlation between problems to be

solved-communication objectives and cognitive, targets and cognitive,

implementation and control and cognitive are positive correlations, with the results

more than 0.5 indicates a strong relationship. The correlation between creative

strategy and cognitive presents a weak correlation. Coefficient reaches 0.290** and the

2-tailed significance is 0 (below 0.01) reveal a high significance. The reason is the

authors only test the copy strategy, one type of creative strategy, thus the weak

correlation can be accepted.

Regression results show that problem to be solved and communication objectives,

targets, creative strategy, and implementation and control, four variables have all

entered the final model. The T values are: 5.045, 2.964, 0.151, 1.290; and the P values

are: 0.000, 0.004, 0.880, and 0.199. The entry sequence of four variables is as follows:

problem to be solved and communication objectives, targets, implementation and

control, and creative strategy, which explain the level of four variables affecting

cognitive.

To sum up, the authors basically agree that hypothesis 1 has been proved.

~ 43 ~

Table 5.1.3 Correlations between management and cognitive

problem to

solve and

communication

objectives Targets

creative

strategy

Implement

ation and

control cognitive

problem to

solve and

communicatio

n objectives

Pearson

Correlation

1 .590** .376

** .602

** .638

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

targets Pearson

Correlation

.590** 1 .331

** .609

** .566

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

copy strategy Pearson

Correlation

.376** .331

** 1 .358

** .290

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

implementati

on and

control

Pearson

Correlation

.602** .609

** .358

** 1 .518

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

cognitive Pearson

Correlation

.638** .566

** .290

** .518

** 1

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145


Table 5.1.4 Coefficients’

Model Unstandardized

Coefficients

Standardized

Coefficients

t Sig. B Std. Error Beta

1 (Constant) 5.198 .785 6.623 .000

problem to solve and

communication objectives

1.425 .283 .423 5.045 .000

Targets .761 .257 .247 2.964 .004

creative strategy .031 .206 .010 .151 .880

Implementation and control .342 .265 .109 1.290 .199

a. Dependent Variable: cognitive

~ 44 ~

5.2 THE CORRELATION BETWEEN MANAGEMENT AND AFFECTIVE

Hypothesis 2 is supported by statistical analysis. It is hypothesized that good

management of advertisers will improve affective degree of consumers by online

advertising.

Lavidge and Steiner (1961) deem that if you want to move consumer from cognitive

stage to affective stage, you must let them clearly know the related information in

order to persuade them to like you product.

However, what kinds of information persuade consumers to like the product becomes

an issue. Aaker (1996) argued that perceived quality can been one element to

persuade consumers, and building brand loyalty and brand associations are the

problems company must be noted. In order to let consumers like the product is also

one of the communication objectives of advertisement (Usunier and Lee, 2009).

Hence, advertisers should know what consumers would like.

Advertisers should obtain knowledge from everyone who is related to the product,

including engineers, salespeople and consumers (Belch, 1998). The certain

information of what consumers want is also significant here. Brand loyalty will be

built if advertisers can lead consumers to have preference of the product, and this

could drive long-term success (Hoyer & Brown, 1990).

Feedback which is based on researches analyzes the recall of advertisement, message

comprehension and other responses; with feedback, advertisers can know better about

the reasons of success or failure and adjust the advertisements as well (Belch, 1998).

If advertisers can manage the feedback well, consumer would like or even prefer the

product.

As Dave et al. (2000) point out that internet is one-to-many or many-to-many

communication media, as the interactive nature of the World Wide Web provides the

facility for feedback. Advertisement is not a monologue anymore, it becomes the

dialogue (ibid), the management of communication can lead consumer to like and

prefer advertised product, thus good management is meaningful.

In this study, the authors test the correlation between management and affective

degree, in order to find relationship of two variables. The authors simplify four

variables which are related to affective degree into one variable called “affective”.

The internal correlation are presented in table 5.2.1, and from it we can see there is a

~ 45 ~

very strong correlation between “affective” and other variables, with all results more

than 0.8. Thus “affective” can represent overall variables of the affective degree.

Table 5.2.1 Internal Correlations of affection

affective liking preference

overall

liking

interest in

related product

affective Pearson

Correlation

1 .850** .835

** .830

** .842

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

liking Pearson

Correlation

.850** 1 .623

** .632

** .612

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

preference Pearson

Correlation

.835** .623

** 1 .591

** .607

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

overall

liking

Pearson

Correlation

.830** .632

** .591

** 1 .570

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

interest in

related

product

Pearson

Correlation

.842** .612

** .607

** .570

** 1

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145


Cronbach‟s Alpha scores is 0.709, which is more than 0.7, indicates the strong

reliability and the combination of variables can be accepted.


Cronbach's

Alpha N of Items

.735 5

The authors tested the Pearson correlation and make the regression analysis which is

presented in table 5.2.3 and table 5.2.4.

The correlation are positive between the variable problems to be

~ 46 ~

solved-communication objective and affective, targets and affective,

implementation-control and affective, with the results more than 0.5, indicates a

strong relationship. The correlation between creative strategy and affective presents a

slightly weak positive trend, coefficient reaches 0.426** and the 2-tailed significance

is 0 (below 0.01) which show a high significance, this results can also be accepted.

Regression results show that problems to be solved and communication objectives,

targets, creative strategy, and implementation and control, have been into the final

model. Dependent variable is affective, and the T values are: 7.887, 4.330, 1.834,

3.416, P values were: 0.000, 0.000, 0.069, and 0.001. The entry sequence of four

variables as follows: problem to be solved and communication objectives, targets,

implementation and control, creative strategy, which explains the level of four

variables influencing on affective degree.


Table 5.2.3 Correlations between management and affective

problem to

solve and

communicatio

n objective Targets

creative

strategy

Implementat

ion and

control affective

problem to

solve and

communicatio

n objective

Pearson Correlation 1 .590** .376

** .602

** .783

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

targets Pearson Correlation .590** 1 .331

** .609

** .693

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

creative

strategy


** 1 .358

** .426

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

implementati

on and

control


** .358

** 1 .681

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

affective Pearson Correlation .783** .693

** .426

** .681

** 1

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145


~ 47 ~

Table 5.2.4 Coefficientsa


Coefficients

Standardized

Coefficients


1 (Constant) .774 .641 1.208 .229


communication objective

1.819 .231 .473 7.887 .000

Targets .908 .210 .258 4.330 .000

creative strategy .309 .168 .089 1.834 .069

Implementation and

control

.739 .216 .207 3.416 .001

a. Dependent Variable: affective

5.3 THE CORRELATION BETWEEN MANAGEMENT AND CONATIVE

Hypothesis 3 is supported by empirical findings. It is also based on the suggested

model. It is hypothesized that good management will improve conative degree of

consumer behavior.

After analyzing the collected data, the authors discover that from a general

perspective, consumers have a little positive likeness towards the advertising. Thus, it

is critical to determine the communication objectives (Tyagi &Kumar, 2004), as this

will let consumers to have more likeness or even preference and go up to the conative

phase.

While identifying the demand, there is a significant positive tendency among

consumers that they will consider buying the advertised product if they need. It can be

seen that good management has lead consumers to come into a high degree of

conative stage.

However, when it comes to the real purchasing behavior, the signal turns out to be

only a little strong. The online advertising management needs to be improved and

involve consumers into much higher conative degree. Therefore, the advertisers‟ good

management should be to let consumers maintain the product‟s top-of-mind

~ 48 ~

awareness (Tyagi &Kumar, 2004; Kotler, 1961). Moreover, the good management

should be to remind consumers that the advertised product maybe needed in the near

future (Tyagi &Kumar, 2004; Kotler, 1961), as the consumers have already admitted

that if they need, they will consider buying it.

Moreover, consumers‟ repurchase behavior seems to be extremely weak. As most

responders state that they do not think the advertised product will be in accord with

the real product. Even worse, they do not have more demand of the brand. Therefore,

the problems which are going to be solved in online advertising should be focused on

dealing with repurchase behavior and lead consumers to more demand. In online

advertising context, it is important to identify the problems to be solved and then

through implementation and control of advertisers, conative degree can be improved.

Meanwhile, consumers are also a little worried about the real product is not

conforming to the advertised one. When advertisers get to know consumers‟ concern

and worry, they can make a good management that ensures the consumers about the

truth of online advertising.

The authors also test the correlation between management and conative degree, in

order to find relationship between them. The authors use one general variable

“conative” which combines the other four variables to test correlation between

management and conative degree. The internal correlation is in the table 5.3.1, with

the results of correlation more than 0.8. It can be accepted that “conative” can

represent overall variable of the conative degree.

~ 49 ~

Table 5.3.1 Internal Correlations of conative

conative

Identifying

demand conviction

More

demand repurchase

conative Pearson Correlation 1 .836** .869

** .839

** .846

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

identifying

demand

Pearson Correlation .836** 1 .667

** .559

** .592

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

conviction Pearson Correlation .869** .667

** 1 .653

** .627

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

more demand Pearson Correlation .839** .559

** .653

** 1 .653

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

repurchase Pearson Correlation .846** .592

** .627

** .653

** 1

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145


Cronbach‟s Alpha scores is 0.709, which is more than 0.7, indicates the opportunity to

approve the hypothesis.


Cronbach's Alpha N of Items

.707 5

Pearson correlation and regression analysis are finished and presented in table 5.3.3

and table 5.3.4.

The correlation is positive between the variable problems to be solved-communication

objectives and conative, targets and conative, implementation-control and conative.

The results are all more than 0.5 indicates that there are strong relationships. The

correlation between creative strategy and conative presents a slightly weak positive

correlation. Coefficient reaches 0.433** and the 2-tailed significance is 0 (below 0.01)

which show a high significance, thus this results can also be accepted.

~ 50 ~

Regression results show that problems to be solved and communication objectives,

targets, creative strategy, implementation and control, four variables have all entered

the final model. The dependent variable is affective, and the T values are: 3.479,

3.300, 2.622, 2.618, P values are: 0.001, 0.001, 0.010, and 0.010. The entry sequence

of four variables is as follows: problem to be solved and communication objectives,

targets, creative strategy, implementation and control, which explains the influence

level of four variables affect on conative.


Table 5.3.3 Correlations between management and conative

problem to

solve and

communicatio

n objective Targets

creative

strategy

Implement

ation and

control conative

problem to

solve and

communicati

on

objective

Pearson Correlation 1 .590** .376

** .602

** .619

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

targets Pearson Correlation .590** 1 .331

** .609

** .606

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

creative

strategy


** 1 .358

** .433

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

implementat

ion and

control


** .358

** 1 .594

**

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145

conative Pearson Correlation .619** .606

** .433

** .594

** 1

Sig. (2-tailed) .000 .000 .000 .000

N 145 145 145 145 145


~ 51 ~

Coefficientsa


Coefficients

Standardized

Coefficients


1 (Constant) 1.833 .835 2.196 .030


communication objective

1.045 .300 .276 3.479 .001

Targets .901 .273 .260 3.300 .001

creative strategy .575 .219 .168 2.622 .010

Implementation and control .738 .282 .210 2.618 .010

a. Dependent Variable: conative

~ 52 ~

6 CONCLUSIONS

6.1 CONCLUSION AND DISCUSSION

The most significant difference between traditional and online advertising is that there

is interactivity in online advertising medium as Internet has an interact nature (Dave

et al., 2000).

Generally speaking, in the authors‟ research, it has been proved that under online

advertising context, good management of problems to be solved and communication

objectives, targets, creative strategy, and implementation and control will influence

cognitive, affective and conative degree of consumer behavior. Copy strategy which

is one of creative strategy (Usunier and Lee, 2009) has a relatively weak improvement

on cognitive degree of consumer behavior. Thus it can be predicted that creative

strategy in online advertising context is not as critical as it is in traditional advertising.

When it comes to cognitive and affective degree of consumer behavior, the influence

level of online advertising management is problems to be solved and communication

objectives, targets, implementation and control and creative strategy. However,

creative strategy lies in the last but one in conative while implementation and control

lies in the last one. Since in conative phase, consumers have already got the liking and

preference of the product, and creative strategy can drive them to real purchase.

In the context of online advertising, good management drives consumer behavior

from unawareness to awareness. After consumers watch the online advertisement,

they want to get more information. However, they do not want to click on the

hyperlink. The reason lies in Internet environment in China. It has reported that

although people highly approve Internet which is used as an information channel and

a communication tool, they have a comparatively low attitude towards Internet trust

and safety (CINIC, 2009). One of the main reasons might be that the relatively small

scale of China‟s Internet Economy. Meanwhile, the phenomenon that Internet

increasingly immerses in life brings about social isolation. Besides, the virus of the

website is also serious (ibid).

In this study, although consumers will take buying the product into account if they

need, they will not plan to buy the product. It can be seen that white-collar workers‟

behavior is very rational. To remind them that the product might be used in the future

(Tyagi &Kumar, 2004; Kotler, 1961) is a critical job for advertisers. Through this way,

good management can improve conative degree of consumer behavior.

~ 53 ~

6.2 IMPLICATIONS

Interactivity is a fundamental factor to analyze consumers and advertisers in the

online advertising context. Compared with traditional advertising, online advertising

has its own advantages to receive feedback from consumers immediately (Tyagi

&Kumar, 2004) so that it will be much easier for online advertiser to control and

monitor management process by taking actions of adjustments and alterations.

In order to improve cognitive, affective and conative degree, the advertisers need to

monitor the online advertising management in an effective way, which is called good

management in this study. Therefore, each step of online advertising management

should be paid attention to and none of them can be omitted.

6.3 FURTHER RESEARCH

Some issues in online advertising area, which might be suitable for future research,

came into the authors‟ mind in the process of completing the dissertation.

Future research could focus on disparate directions regarding to the management of

online advertising and the effectiveness of it. In addition, it can explore how

advertisers adjust their management according to consumers‟ response.

An analysis of countries which also involves a remarkable growth of online

advertising development could be researched. For instance, the country USA which

has different cultures from China can be a sample.

Since different countries under diverse cultures may have different management and

the respondents‟ answers could be totally different, a comparison studies of how

advertisers in China and USA experience different cultures through online

advertising.

~ 54 ~

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Appendix I:

Questionnaire:

Online advertising usually refers to search engines, banner advertising, direct e-mail

and links or services from other web sites. Please pick up ONE type of online

advertising you have seen recently and rate the following questions from 1-5. (1=I do

not agree, 2=I partly agree, 3=neutral, 4= I agree, 5=I completely agree)

Please notice that all of the information in this questionnaire will be treated

confidentially.

Information of yourself:

Name: ____ Sex: ____ Position: ____

1. Before I watch the online advertisement, I already have awareness of the advertised

product.

1____ 2____ 3____ 4____ 5____

2. Through online advertising, I have known more about this product.

1____ 2____ 3____ 4____ 5____

3. I have remembered the brand of the online advertisement.

1____ 2____ 3____ 4____ 5____

4. After watching the online advertisement, I want to get more information about this

product.

1____ 2____ 3____ 4____ 5____

5. I will click on the link or website of the online advertisement.

1____ 2____ 3____ 4____ 5____

~ 61 ~

6. I like this product after I watch the online advertisement.

1____ 2____ 3____ 4____ 5____

7. This online advertisement is very attractive to me.

1____ 2____ 3____ 4____ 5____

8. This online advertisement impresses me a lot.

1____ 2____ 3____ 4____ 5____

9. The online advertisement contains a huge amount of information.

1____ 2____ 3____ 4____ 5____

10. After watching the online advertisement, I associate with other online ads.

1____ 2____ 3____ 4____ 5____

11. Generally speaking, I like this online advertisement. ____

1____ 2____ 3____ 4____ 5____

12. If I need, I would consider buying this product.

1____ 2____ 3____ 4____ 5____

13. I plan to buy the product.

1____ 2____ 3____ 4____ 5____

~ 62 ~

14. It will be more likely for me to buy other products of this brand.

1____ 2____ 3____ 4____ 5____

15. I think I will rebuy the product.

1____ 2____ 3____ 4____ 5____

16. I think the advertised product is in accord with the real product.

1____ 2____ 3____ 4____ 5____

~ 63 ~

Appendix II: Frequency of each question

1. Before I watch the advertisement, I already have awareness of the advertised

product

2. Through online advertising, I have known more about this product

3. I have remembered the brand of the advertisement

Freque

ncy

Percent

I do not agree 9 6.2

I partly agree 45 31.0

neutral 52 35.9

I agree 27 18.6

I completely agree 12 8.3

Total 145 100

Frequency Percent



neutral 48 33.1

I agree 56 38.6


Total 145 100

Frequency Percent



neutral 53 36.6

I agree 43 29.7


Total 145 100

~ 64 ~

4. After watching the advertisement, I want to get more information about this

product.

Frequency Percent



neutral 57 39.3

I agree 36 24.8


Total 145 100

5. I will click on the link or website of the advertisement

6. I like this product after I watch this online advertisement

7. This advertisement is very attractive to me.

Frequency Percent



neutral 50 34.5

I agree 27 18.6


Total 145 100

Frequency Percent



neutral 79 54.5

I agree 17 11.7


Total 145 100

Frequency Percen

t



neutral 77 53.1

I agree 24 16.6


Total 145 100

~ 65 ~

8. This advertisement impresses me a lot.

9. The online advertisement contains a huge amount of information

10. After watching the advertisement, I associate with other online advertisement

11. Generally speaking, I like this online advertising.

Frequency Percent



neutral 72 49.7

I agree 31 21.4


Total 145 100

Frequency Percent



neutral 67 46.2

I agree 28 19.3


Total 145 100

Frequency Percent



neutral 58 40.0

I agree 45 31.0


Total 145 100

Frequency Percent



neutral 63 43.4

I agree 34 23.4


Total 145 100

~ 66 ~

12. If I need, I would consider buying this product.

13. I plan to buy the product.

14. It will be more likely for me to buy other products of this brand.

15. I think I will rebuy the product.

Frequency Percent



neutral 52 35.9

I agree 46 31.7


Total 145 100

Frequency Percent



neutral 64 44.1

I agree 15 10.3


Total 145 100

Frequency Percent



neutral 71 49.0

I agree 20 13.8


Total 145 100

Frequency Percent



neutral 61 42.1

I agree 22 15.2


Total 145 100

~ 67 ~

16. I think the advertised product is in accord with the real product

Frequency Percent



neutral 74 51.0

I agree 19 13.1


Total 145 100

Documents

Advertising management influence effectiveness of online