The Effectiveness Of Online Advertising Towards Amazon

Executive Summary

Through this research, we will understand that the effectiveness of online advertising towards Amazon and identify the advertising can create customers satisfaction among online customers in Malaysia. Customers satisfaction is important for business to earn more profits and gain customers’ loyalty. Customers’ loyalty will increase the numbered of sales towards the organization. Lastly, this research will indicate that advertising will affect customers online shopping behavior or not. Based on this situation, organization will pay more attention to create a good advertising.

Introduction & Research Background

Nowadays, advertisement is taking place in e-commerce website. People are using Internet to carry out shopping activities. Therefore, advertising is essential for e-commerce business to promote their products or services. In this situation, we would like to research about the effectiveness of advertising (Anusha, 2016). We choose Amazon as our target research object to identify whether their online advertisement effective or not.

In this research, we need to identify the website advertising will affect the online shopping behavior (Naser Zourikalatehsamad, 2015). An interesting advertising can attract customers to look at the company’ products and services. This will help the company to increase the customer satisfaction (Taylor, 2013). For a good advertising, customers will expend tine to travel to the website and create the motivation for increasing the profit of Amazon in the market place.

In addition, the numbered of sales also play an important role to know that the online advertising effective for Amazon (Anusha, 2016). In this new era of technology, a lot of people prefer online shopping, especially teenagers. Understanding teenagers online shopping behaviors is the key to increased teenager customers. So, Amazon has to create an advertising which can attract teenagers to purchase to increase their sales.

Therefore, the aim of this research is to understand whether online advertising effective or not towards online shopping customers in Malaysia. Besides, the objectives of the research are to determine the advertising will affect the Amazon’s customer satisfaction and to find out the numbered of sales will increase due to a good advertising (Naser Zourikalatehsamad, 2015). Lastly, research whether advertising affects the impacts of gender toward online shopping behaviors.

There are some research problems that need to be studied with the previous study and able contribute to the further study. First, is it the online advertising will affect customers satisfaction among the online customers in Malaysia? Second, is it the gender will affect the online shopping behavior among the online customers in Malaysia? Third, is it the advertising will affect the numbered of sales of Amazon?

Literature Review

Theorical Framework

Advertising is the act or practice of calling the public to pay attention of a person’s products, services, needs etc. There are some channels for advertising to communicate with consumers, such as newspapers, television, internet, magazines and so on. Online advertising is focus on media marketing to get more customers through Internet. An effective advertising is essential to find the right way to attract more customers to purchase products or services (N. Gladson Nwokah, 2018). In this case, Amazon has to regard the attitude of advertising as the behavior of viewers towards the advertising.

In Malaysia, advertising industry is a lucrative business, including online advertising. Amazon advertising has to create effectively according to Malaysia online customers’ interests, habits, culture, etc. to increase their profits thereby Amazon can reach their goals. According to Top 10 Super Bowls Ads by Total Views Online above, as we can see that the views of Amazon advertising is ranked third (Super Bowl 2018 Data, 2018). The more views of advertising, the more reputation that Amazon can earn to complete their branding circle. Nowadays, Internet has billions of users around the world. Online advertising has huge potentials to create a new business and opportunities.

On the other hand, here is the percentage of consumers begin their product research for information, price, quality and so on. When customers want to buy something online, they will search for their products on Amazon. Hence, advertising is important for consumers to remember us and purchase their products from us. Advertising also help to achieve your goals by understanding customers’ interests.

Research Design & Primary Data

For sample and population, this study had employed quota sampling method of controlling the age factor. A total of 30 respondents was selected based on ratio 1:1. So, there are three categories which are 18 years old and above, 25 years old and above, and 30 years old and above. I choose them as the main sample is because teenagers are playing an important role to analysis future trend in Malaysia. A few years later, teenagers will be the pillars of the nation. Hence, I think that they will be the ideal customers for us to target.

Primary Data

Primary data is information that is collected using questionnaires to fulfil specific needs and used to get information from the target group to get the right result. Questionnaires are done to gain the direct information from the online customers in Malaysia to complete the data analysis.

The questionnaire will be given with face-to-face method and online communication.

Target group: Online customers in Malaysia, especially teenagers.

No of questions: 10 questions

Sample size: 30 questionnaires to using online shopping customers in Malaysia

The questionnaire divides in two parts which are part A and part B.

Part Number of Question Objectives

A 1-5 To find out the demographic information. B 6-10 To find out the opinion of online customers and identifies the factors that affect the effectiveness of online advertising.

The finding above indicates that out of 40 online customers, 60% percent were 18% above citizen, 30% percent were 25 above and 10% percent will be 30 years old above. Hence, 18 years old and above online customers were more interested in participating in the research subject area than others.

Online customers check the online ads while browsing

Online Customers check the online ads while browsing Percentage%

Yes 40%

Maybe 40%

No 20%

It indicates that 40% percent of online customers were checking the online advertising while browsing, another 40% percent shows that maybe they were check for it and 20% of online customers were not checking the advertising while browsing.

Customers Purchase Online Percentage

Has Customer Purchase Online Percentage

Yes 90%

No 10%

The finding above states that 90% of respondents have been purchased online and 10% were not. In this situation, as we can see that a lot of consumers prefer online shopping in Malaysia.

Have respondents made any purchases after seeing advertisement?

Have respondents made any purchases after seeing advertisement? Percentage

Yes 80%

No 20%

It shows that 80% of respondents were made purchase after seeing advertisement, and 20% of respondents were not. This means that Amazon has to create an attractive advertising to get potential customers attention to make any purchase.

Advertisement related to which product

Advertisement related to which product Percentage

Entertainment 50%

Academic 20%

Jobs 10%

Others 60%

This is a multiple choice. As we can see, 50% of respondents were interested in purchasing while the advertisements related to entertainment products. Academic were 20% and jobs will be 10%. Besides, we had 60% of respondents choose others.

Have respondents seen Amazon advertisements?

Have respondents seen Amazon advertisements? Percentage

Yes 80%

No 20%

Amazon is a popular online shopping business around the world. In Malaysia, 80% of respondents seen Amazon advertisements before. In this situation, Amazon advertisement is really effective towards consumers as a lot of online customers had seen its advertisement before.

How did Amazon advertisement describe the products or servives?

How did Amazon advertisement describe the products or services? Percentage

Very well, it was clear and easy to understand 20%

Well 20%

Average 50%

Bad 10%

Very bad, it was unclear and difficult to understand 0%

The finding above indicates that 20%of respondents felt that Amazon ads are very clear, another 20% felt that the ads are well. On the other hand, 50% of respondents think that Amazon ads are average and 10% of respondents felt the ads are bad.

Based on the advertisement about "Enter Product/Service", would respondents consider to buy it?

Would respondents consider to buy it? Percentage

Surely Yes 10%

Probably Yes 50%

Maybe 20%

Probably No 10%

Surely No 10%

The data shows that out of 30 respondents, 10% chose surely yes to consider to buy the product/service, 50% chose probably yes. Moreover, 20% were maybe and another 10% were probably no to consider to buy based on the Amazon advertisement. Lastly, 10% of respondents were surely not to consider to purchase.

Have respondents found credible the affirmations made in the advertisement about the product/service?

Have respondents found credible? Percentage

Totally Credible 0%

Quite Credible 50%

Neither Credible nor Incredible 40%

Quite Incredible 10%

Absolutely Incredible 0%

The pie chart states that Have respondents found credible the affirmations made in the advertisement about the product/service. Through this research, we found out that no one think that was totally credible and absolutely incredible. 50% of respondents think that was quite credible, 40% think that was neither credible nor incredible and 10% of respondents think that was quite incredible.

Benefits and limitations of the Proposed Research

Benefits of the research

To promoting the welfare of the customers, Amazon can bring huge profits through the right experience and expertise. Through this research, they will understand that the usage rate of online advertising among online customers Malaysia (Mahsa Abayi, 2016). Besides, this will help Amazon to target their market easier therefore they can achieve their goals.

On the other hand, this research will help Amazon to identify opportunities in the marketplace (Taylor, 2013). For example, we found that the age among online customers in Malaysia is from 18 years to 25 years old. Hence, there will help Amazon to minimize risks and communicate well with their potential customers

Limitations of the proposed research

Nowadays, problem of rapid change will make our research cannot achieve the goals. This will make the findings or results that are available after a certain period time are meaningless. In my opinion, Malaysia is a developing country. The usage rate of Malaysia still no enough. The target customers are only target on teenagers. Besides that, senior citizens in Malaysia are more conservative to accept Internet for online shopping (Naser Zourikalatehsamad, 2015). A lot of them do not know how to operate it.

Conclusion

In a nutshell, online advertising is taking places around the world because it can reduce cost and earn more market places. Amazon has to improve their advertising design and quality to make the advertising easy to understand to attract more potential consumers. Besides that, Amazon also has to add more creative and interesting way in the advertising to make consumers purchase from them.

On the other hand, although there was a big number of Internet user, but online customers think that Internet also has high risks for purchasing. For example, customers and sellers cannot communicate face-to-face. This will make customers do not believe the advertising and also the sellers. In my opinion, Amazon has to find a right way to make the communication effectively and efficiently, such as sellers can create a video for their products, not only photos.

Finally, online payment also a serious problem for Amazon to solve it. If the online payment does not safe, customers will not consider online shopping again. Hence, Amazon can create a great firewall and always upgrades their online payment system to protect customers privacy.