The Role of Internet Advertising in Hong Kong - Research Paper Example

? The Role of Internet Advertizing in Shaping Purchasing Behaviors in Hong Kong We live in a world where therole of media on consumer behavior is increasingly becoming common. From medium enterprises to multinational companies, these firms are spending billions of dollars in advertising their products, year in and year out. The ability of media, and especially the internet, to turn around the purchasing power and alter the trends in buying preferences has revolutionized the purchasing behaviors in Hong Kong. The aim of this inquiry is to examine the role of internet advertising on the purchasing behavior of consumers at Hong Kong. The study objectives of this study include the analysis of the status of internet marketing in Hong Kong, to examine the effectiveness of internet marketing at Hong Kong, and to examine the behavior and the viewpoints of consumers, towards internet marketing (Anderson, Claes, & Lehmann 53). Introduction There is no doubt that the internet continues to shape consumer trends not only in Hong Kong, but also in the rest of the world. The internet has grown into a crucial source of information for the entire population. In response to this trend, and the growing influence of the internet, advertisers and marketers found it a useful tool to reach target consumers. Due to the integrated nature of the role of the internet in marketing, the effectiveness of online advertising has remained an issue of debate among consumers, scholars and advertisers (Charlesworth 33-334). This paper will be an analysis of the status of internet marketing in Hong Kong and its effectiveness in shaping purchasing behaviors of Hong Kong consumers. Basically, the paper will analyze the role played by internet advertizing in influencing Hong Kong’s consumer behavior. Online advertising in Hong Kong Internet advertising is the mode of promotion, which uses the World Wide Web to communicate marketing messages, intended at attracting customers. Internet advertising is anticipated to grow by 17.4%. This model is expected to overtake advertising over the TV. The impact of advertising on customer behavior is huge and many consumers are now turning to the internet to do their purchases. The Nielsen’s AdRelevance publication of 2008 noted that the amounts spent on internet advertising in Hong Kong are in the range of HK$ 172 million, for the opening quarter of 2008. Of the total expenditure, electrical and computer appliances grouping contributed the most, giving a total of HK$ 30 million. During this quarter of 2008, more than 1000 advertisers advertised their wares over the internet: 5.5 billion internet-advertising impressions and 2800 campaigns. Previous studies show that advertising – directly or indirectly influences the purchasing behavior of consumers. According to Charlesworth, customers with a fair outlook towards advertising are more likely to be influenced by advertising – into making purchases (67-69). Undoubtedly, there are many types of advertisements, which people can use to advertise their products and services. Currently, internet advertising has proved to be the most effective method of marketing products. The emergence of the internet as a tool for marketing has so far proved to be one of the most effective methods of boosting consumer behavior. It is imperative to note that internet use began in 1980s and has since grown tremendously throughout the world. The emergence of new technologies such as fiber optics has even led to the increase of business opportunities, but its use as well. All over the world, over 150 million people use internet for various purposes, and the numbers keep on increasing each day. Today, through internet, the world has become a global village where consumers use the smallest gadgets—mobile phones—to buy products and services (Faber, Lee, and Xiaoli 447). From internet banking to money transfer to online purchasing, the internet has become a powerful device in the consumer industry. Various governments are busy putting internet infrastructure, and with the increased internet access both at home and in schools, we expect the number of internet users to grow immensely. Currently, the internet is the most common and efficient mode of communication. Additionally, internet forms the primary basis of information sharing and is a mode of entertainment. However, the same internet is progressively gaining momentum as an avenue of doing commercial transactions. It is, therefore, of good importance to understand the role that internet plays in boosting purchasing behaviors, and give predictions for future internet commercial transaction activities (Gladwell). Status of internet marketing in Hong Kong The revolutionary change spearheaded by the information technology has affected the lives of people in one way or another.In Hong Kong, just like in the rest of the world, internet has grown immensely in terms of usage and the number of people using it. This is because the people of Hong Kong know the roles of internet in communication, education, entertainment, and electronic shopping. Of great importance to all business stakeholders, consumers and sellers included, is the role that internet plays on the business side. Many people agree that the internet has indeed altered the manner in which people do their businesses in Hong Kong. This is simply because internet marketing offers people infinite range of products and services not only to Hong Kong consumers, but also from the rest of the world. With internet marketing, people can shop at any place and at their convenient times. Even as more people become increasingly aware of the operations of internet marketing, we expect the global marketplace to blossom (Harris 34). Internet marketing is also driving the consumer side in Hong Kong markets. With increased internet advertisements through search engine optimizations, more and more Hong Kong consumers are gaining access to information on various products and services available nationally and internationally. Online shopping of products and services is becoming common among consumers due to the availability of information. Additionally, the accessibility of information on various products from companies within and without Hong Kong has helped consumers to save their time on shopping, and engage in other useful economic activities. It is also important to note that consumers play a vital role in internet marketing, as they are the ones who search for information online for their own benefits. The accessibility of internet with a goal to shop for products and services influences purchasing behaviors more (Johnson). Various market research reports indicate a significant growth of the number of people doing online shopping in Hong Kong. Indeed, this optimistic outlook gives a glimpse of internet marketing in the future. Therefore, studies to examine the consumer behavior in connection to online purchases are paramount. Most market researchers are also turning their attentions to online shopping and the role it plays in consumer purchases. Many consumers also want to know more about the products and services they want to purchase, and therefore they opt for the internet to get more information before making purchase decisions. Additionally, the government of Hong Kong has been on the front line in developing information technology (IT) infrastructure throughout the country in order to advance economically. In the public limelight, the government of Hong Kong is also busy urging the people to be IT-savvy, as with the growing use of internet, people will have to resort to online purchasing (Mehta 67). Online behavior Researchers have come up with several types of online behaviors influence purchasing behaviors. This paper discusses four of them with a view to get a glimpse of the role on internet advertisement in influencing purchasing behaviors. Firstly, the time spent online is paramount to affect one’s purchasing behaviors, as they are able to know various products and services available online. In Hong Kong, people access internet in their homes, school or even at workplaces. A certain population spends their online hours searching information about certain products and services. Meaning, the more the time spent online for consumer–related issues, the more information one gets about certain products (Schumann and Thorson 12). The second online consumer behavior is the search activity that is purely devoted to purchasing purposes only. There are numerous advertisements Websites, which one can visit before making an informed choice to do online shopping. Using keywords of the products, the very many search engines can access the needed information. There is likelihood that most people who do online shopping might have searched for the products earlier on. The third online behavior is the shopping behavior. Some people would like to buy certain products online, and buy others in the market. For example, in Hong Kong, the e-commerce categories that top the list include consumer electronics, airline tickets, healthcare products, books, hotel reservations, music and CDs, and personal care products. Thus, the type of product can influence online shopping and hence purchasing behavior (Twitchell). The fourth type of online behavior is the utility of the internet. Some people own internet for personal use, while others own it for business purposes. On internet utility, consumers would also like to understand the satisfaction needs of online transactions. People use internet for various purposes including research, communication, online banking, and entertainment. However, when they use it for consumer related purposes, it is a utility, which is able to influence purchasing behaviors (Mehta 67-69). Effectiveness of internet advertising As seen from above, internet marketing is an avenue that links the consumer to the marketer. Different firms employ various strategies to advertise their products online, which may have an effect on promoting purchasing behaviors. The benefits of internet marketing are so many including influencing purchasing behaviors, but only after fulfilling the needs of the consumers. Available 24 hours a day, the internet can influence the purchasing behavior of consumers by showering them with information about sold online products. So far, internet advertising has proved so effective in addressing the needs of the consumers. The benefits of internet marketing are so many, and consumers can use the opportunity to do online shopping and have their goods delivered to their doorsteps without going for them (Wang and Sun 334). Consumers can access information about products at any time and any place free of charge. Additionally, the absence of restrictions means that consumers can search for the goods and products they need, analyze the features, and compare prices before making the final decision. The internet also provides up to date information meaning that consumers will have the latest information regarding certain products and goods. There are also very many internet sites where consumers can subscribe and receive the latest information on emerging products and goods in their email accounts. In fact, with the latest development of technology, people can even get updates of products and goods via their mobile phones (Twitchell). Conclusion Internet advertising is a strategy that aims to produce the best campaign in selling products and goods online. Nevertheless, it is not an easy task, as it needs colossal skills, observation, and professional thinking minds. Internet marketing pays a significant role in influencing purchasing behaviors. Works Cited Anderson, Eugene, ClaesFornell, and Lehmann Donald. “Customer satisfaction, market share and profitability: findings from Sweden”. Journal of Marketing 58. 2 (1994): 53 – 55. Print. In this journal article, the authors explore extensively issues regarding profitability, market share and customer satisfaction. On market share, they extensively discuss advertising, including Internet marketing, and how it expands a firm’s market share. This journal article is relevant to this topic because it connects advertising and market share expansion. Charlesworth, Alan. Internet marketing: a practical approach. London: Butterworth- Heinemann, 2009. Print. In this book, the author extensively explores the concept of Internet marketing using a practical approach. He discusses aspects of consumer psychology and relates them to Internet marketing, in terms of how the online marketing influences consumer psychology and, hence, consumer purchasing behavior, which makes the book a must read for anybody interested in our topic. Faber, Ronald, Mira Lee, and Nan Xiaoli. “Advertising and the consumer information environment online.” American Behavioral Scientist 48. 4 (2004): 447-450. Print. In this journal article, the authors discuss online consumer information and advertisingin an extensive manner. Basically, they discuss on Internet advertising gives information to consumers online, which in turns affects their purchasing behavior; hence, the article is very relevant to this topic. Gladwell, Malcolm. “The Science of Shopping.” The New Yorker, 4 Nov. 1996. Web. 4 Nov. 2012. http://www.newyorker.com/archive/1996/11/04/1996_11_04_066_TNY_CARDS_0 00376169 In this article from The New Yorker Magazine, the authorexamines the science of marketing and incorporates aspects of Internet marketing and their influence on the consumer. He discusses how such marketing strategies influence consumer purchasing behavior; thus, the article is very relevant to this study. Harris, Dan. The New Media Book. London: British Film Institute, 2002. Print. In this book, the author extensively explores Internet marketing concentrating on online marketing andterming it as the newest and one of the fastest growing forms of marketing. The author argues that Internet marketing is increasingly becoming popular and that it is playing a big role in influencing consumer behavior that is consumer purchasing behavior, which makes it very relevant to the topic of our discussion. Johnson, Steven. “It's All About Us.” Time Magazine, 25 Dec. 2006. Web. 4 Nov. 2012. http://www.time.com/time/magazine/article/0,9171,1570805,00.html In this article in the Time Magazine, the author discusses how bloggers, hobbyists and diarists among others promote extensive Internet marketing and how their activities influence consumer demand and behavior. Due to this, the article is very relevant to the research, which deals with the role of Internet marketing on consumer behavior. Mehta, Abhilasha. “Advertising attitudes and advertising effectiveness”. Journal of Advertising Research 40 (2000): 67 – 69. Print. In this article, the author touches on the issue of advertising attitudes and advertising effectiveness, where he looks at how Internet marketing is becoming a major type of advertising and how it is massively beginning to influence purchasing behavior of consumers all over the world. He emphasizes the fact that Internet marketing is becoming a very effective means of advertising in the modern world; hence, the article is very relevant to the study. Schumann, David, and Esther Thorson.Internet Advertising: Theory and Research. London: Routledge, 2007. Print. In this book, David Schumann and Esther Thorson examine the concept of Internet marketing, involving theory and research. They touch on issues of consumer psychology and relate this to Internet marketing. They argue that Internet marketing greatly influences consumer psychology, which in turn influences consumer purchasing behavior since consumer behavior is basically psychologically influenced. As seen from the short summary of the book, it is very critical to this study. Twitchell, James B. “What We Are to Advertisers.” Compforconverseeng101.blogspot.com, Blogspot, 27 Apr 2010. Web 4 Nov. 2012. http://compforconverseeng101.blogspot.com/2010/04/james-b-twitchell-what-we-are-to.html This article, basically, touches on the issue of how advertisers target consumers using various means of advertising. It discusses how advertisers are turning to Internet marketing as their main advertising platform, which proves to be very effective to them. As a result of these aspects discussed in the article, it becomes very relevant to this study, which focuses on the effectiveness of Internet marketing. Wang, Ying, and Sun Shaojing. “Assessing beliefs, attitudes, and behavioral responses toward online advertising in three countries.” International Business Review 19. 4 (2010): 333 – 344. Print. In this article, Ying Wang and Shaojing Sun critically assess attitudes, beliefs and responses in terms of behavior towards online advertising. Basically, they try to explore how effective Internet or online marketing influences consumer behavior, and they come up with very useful suggestions and conclusions, which makes the article very relevant to the topic of this study. Read More