Examining the effects of online advertising on

consumer attitudes and brand preferences

toward mobile phones industry.

Introduction and literature review

16 March 2015

Lecturer: Dr. Sabrina Thornton

Student name: Mai T.T. Dao- u1473572

I. Introduction:

Nowadays, mobile phones have become very important to people all over the world. In

other words, mobile phones have today become a necessity in life and are treated as a

vital instrument carried by individuals, allowing them to be kept informed and connected

with the rest of the world. It is an opportunity to stay in touch with friends and family

members, where having access to emails and business associates, are just a few of

reasons for increased in importance of mobile phones. The belief is that mobile phone

has a manifest destiny to subsume everything else. According to Bridges, Rempel and

Griggs (2010), the worldwide penetration rates for mobile phones usage have gone up

from five percent ten years ago, to an estimated 61 percent in 2008. The more advance

in technology of the mobile phones, the higher the rank the user is seen in the eyes of

other people. Nowadays, mobile phones are quite affordable and easy to use leading to

an increase in the number of mobile phone providers with companies designing and

developing their very own platforms and operating systems.

Meanwhile, advertisement is considered the lifeline of any company that wants to

market their product. It persuades or influences an audience to buy their product,

enabling the company to increase sales and profit (Wells, et al, 2003, Richards and

Curran, 2002). Moreover, with the advent of the Internet and its growing importance as

a place to do business, online advertising has become a topic of increasing interest to

academic research (Ha, 2008; Kim and McMillan, 2008). In the past decade, Internet

advertising has grown beyond simple banner advertising to include new advertising

models and online channels (e.g., advertising through search engines and price

comparison Web site advertising) that make better use of the Internet's unique potential

for interaction between consumer and advertiser (Rappaport 2007).

Until now, attitudes toward websites have been considered important indicators in

measuring the effectiveness of advertisements (Rodgers & Thorson, 2000). However,

research on the effectiveness of the online advertising channels is still rare. Therefore,

the purpose of this study is to investigate consumers attitudes towards mobile products

online advertising. Apparently, hosts of studies have suggested that individuals attitude

is an important measure of advertising effectiveness (Haley, Staffaronie and Fox, 1994,

Russell et al., 1994, Ducoffe, 1996). At that point, in practical standpoint, the research

will be relevant to advertisers as the consumers attitude might affect to not only their

brand preferences and purchasing intension but also the level of brand loyalty,

therefore, a deep understanding in the field is vital for the marketers. Plus, the study will

enable businesses and organizations to use online advertising more effectively and

efficiently in their global marketing efforts. For example, a better understanding of the

relationship between attitudes toward online advertising and consumers response

behavior will facilitate businesses to evaluate their online marketing programs more

accurately.

II. Literature review:

Studies on attitudes toward advertising generally fall into two avenues. Firstly,

investigate the impact of consumers attitudes and then, belief, toward advertising

effectiveness (MacKenzie et al., 1986; Muehling, 1987). Regarding to the later, scholars

examine how consumer attitudes towards online advertising influence their brand

preferences and then, purchase intention (Gong and Maddox, 2003).

Consumers attitude towards Internet advertising

Attitude is an important driver of behavioral change (Kimelfeld & Watt, 2001); perception

of advertisements directly affects the consumers attitudes toward brands and then

purchase intention (Suh & Yi, 2006). Mackenzie and Lutz (1989) defined the attitude

toward an advertisement as being the response elicited in a consumer; Lutz (1985)

believed the attitude toward an advertisement is in itself an expression of personal

preference towards a product. Ajzen and Fishbein (1980), and Mitchell and Olson

(1981) noted that the attitude toward an advertisement affects consumers perceptions

of brands, and determines whether a purchase is made. This opinion has been held by

many scholars (Brown & Stayman, 1992; Gorn, 1982; Homer, 1990; MacKenzie & Lutz,

1989; MacKenzie, Lutz, & Belch, 1986; Moore & Hutchinson, 1983). Therefore, the

following hypothesis is proposed:

H1: The more positive a consumers attitude toward an advertisement is, the greater the

effect of the advertisement?

Consumer belief

It is argued that consumer behavior such as advertisement avoidance may be a result

of consumers general negative attitudes toward advertising (Li et al., 2002). In addition,

Wolin et al. (2002) show that several belief factors influenced web users attitudes which

in turn had an impact on users behavioral intention. In specific, past research suggests

consumers beliefs about online advertising are positively associated with their

attidudes. Accordingly, the hypotheses as following:

H2: Positive beliefs about online advertising will have a positive influence on their

attitudes towards online advertising.

H3: Negative beliefs about online advertising will have a negative influence on their

attitudes towards online advertising.

Consumer attitudes and consumer response to online advertising

Lavidge and Steiner (1961) effect suggested that ones belief is a precursor of attitude,

which by default is an antecedent of behavior. Past research has supported that beliefs

and attitudes are precursors of consumers response toward online advertising, and

ltimately their purchase intention. Mehta (2000), for example, examined the relationship

between attitudes toward advertising in general and consumer responses in terms of

brand recall and buying intention. The researcher found that attitudes toward advertising

in general influenced attitudes toward a specific advertisement. Furthermore,

consumers with a more favorable attitude towards advertising were more likely to recall

the brand and be persuaded by advertising. At that point, it turns out that attitudes

consumer brand preference have the relationship towards online advertising. Hence,

the hypothesis is suggested:

H4: What is the relationship between attitudes and consumers responses to online

advertising?

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