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Critical Factors in the Success and Failure of Search-Based Advertising - Research Proposal Example

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The paper "Critical Factors in the Success and Failure of Search-Based Advertising" explores the market structure of search-based online advertising and economic aspects of it. The aim of the paper is to be able to explore and acknowledge how SBV advertisers should exploit this mode of advertising…
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Critical Factors in the Success and Failure of Search-Based Advertising
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Thesis ment: Critical factors in the Success and failure of Search based advertising (SBV). Introduction A substantial part of my literature review and methodology towards this thesis are devoted to the success and failure of search-based online advertising and the major determinants of it.(Kulviwat 2004:245-253).In this vein my research draws heavily from the literature based upon the consumer behaviour and how it has shaped and will shape IT based advertising in the future and now. This will be done by a review of the literature pertaining to the information search and its relation with consumer preferences and behaviours. The paper culminates in suggesting a conceptual framework based on the common determinants making search based advertising a success or a failure. Search based advertising is a precursor to online purchase, and thus can make valuable information online. The rest of thesis aims to explore the market structure of search-based online advertising and economic aspects of it. Using economies of multi-sided platforms it will examine search-based advertising platforms.The thesis explores whether a single platform emerge in the end for search based online n the ranking of a company improve its quality.In this vein my thesis addresses the Division with in the online advertising industry pertaining to search advertising, display advertising, classified listing, internet e-mail based advertisement. The thesis will explore the effects of advertising on search result pages ,technology underneath search-based advertising ,keyword bidding system ,search-based platforms. Finally the thesis addresses the market structure of search-based advertising on Google, Yahoo, MSN, AOL, Ask through user surveys. With in the discussion of economic factors affecting two-sided market structure there will an inclusion of determinants like the pricing of keywords ,role of indirect network effects ,size of smaller platforms , loop between the search and advertiser side and the role of aspects like CPC(cost per click) and CTR(Click through rate).Other matters include the effects of bid prices ,keyword ranking ,role of Latency .liquidity and "Sequential search" that creates a directional marketing (the directionality arises from the cognitive cost to a consumer of visiting sellers at the bottom of the list before visiting those at the top of the listing . Essentially my main emphasis remains upon the paradox of how : A) The internet can facilitate information search and B) How it can it can at the same time cause hindrance due to information overload' With the help of mixed methodological approach both qualitative and quantitative data is gathered to study the behavior of the online consumers towards the search based advertising attached with the product so that in the light of their behaviour an effective marketing strategy can be manipulated to successfully target them. The secondary analysis of data is conducted to get qualitative information about the concept of search based advertising and its importance and role in the online shopping. Moreover interviews are also conducted from the Internet Users belonging to different age groups so that their behaviours can be studied regarding the product value in online shopping. The data and information collected through these sources is calculated, analyzed, interpreted and discussed and finally the paper presents a way ahead for search based advertising.Only an in depth study of the online consumer behaviour can assure the success of a marketing project and in this regard there is need of such study that can clarify all the related issues and study the behaviours of the online buyers regarding search based online advertising.In this regard my research draws insights from people belonging to different age groups might have different views about search based advertising and takes into account their differences in perceptions. Proposed Literature Review The literature review will focus upon how the internet is emerging as a shopping destination and the role or the potential role of search based online advertising in the making and breaking of internet transactions. The use of Search based advertising is not only discussed for commercial purposes but also for other purposes like E-governance and election campaigns.It can be seen that Internet users use the internet to perform a perform variety of activities while they log in to the internet for example the people use internet for education purpose, seeking information, chatting, emailing, entertainments etc however it is revealed from a research that the third most popular activity of internet is shopping. (Ping Zhang, p528, 20002). . The Emergence of Search based advertising: Attributes of the Internet which make it a successful commercial channel Content Design Interactivity Non commercial use of SBV: Online Election campaigns and the political perspective. SBV as a strategic marketing tool The narrow and the wider perspective Cultural impact on the importance of marketing. So is there a way forward' Crucial factors with in SBV advertising Fishbein's Attitude-Towards-Object Model Research Aim The aim of this research is to be able to explore and acknowledge how SBV advertisers should exploit this mode of advertising in order to respond and adapt to the changing online tastes . Research Philosophy The research for the development of further knowledge in the subject was carried out following both a positivist and an interpretivist approach. The positivist approach was required to study the social movement and trends in the online SBV industry (Malhotra et al, 2003). This philosophy encouraged a structured methodology to ensure that the initial research questions would be answered and hence, would build up the reason as to why to carry out this research. (Saunders et al. 2003). Malhotra et al. (2003) suggest that a positivist approach would think of frameworks as being restrictive and, therefore, reducing the researchers' ability to enlarge his/her perspective in the study. Remenyi et al. (1998: pp. 32); cited by Saunders et al, (2003: pp. 84), suggests that interpretivist approach allows to develop a further understanding of the motivating factors behind peoples' behaviour. For this study both approaches are meaningful, as a positivist approach constructs firm law-like generalisations based on a structured methodology and, the qualitative data makes the study progress with a partly interpretivist approach by looking further into consumers insights. The author has decided to follow a phenomenological approach due to the nature of the research question being all about experiences. To fully answer the research question it is necessary to understand people's emotions and feelings, which will take the form of qualitative data. Phenomenological research focuses on qualitative data and often involves contemporary issues, hence why this type of approach is most suited. (Saunders et al., 2003) Research Approach In this research, a deductive approach will be used in order to develop a more precise understanding on the SBV market in the UK SBV industry and then narrow it down to its attributes and how this can serve as a marketing tool to increase the overall market share of SBV advertisers in the UK. Unlike the inductive approach, the deductive approach tests a theory (Saunders et al., 2003). A hypothesis is drawn and expressed as measurable variables that can then be tested to either sustain the initial theory or modify it if the findings show a different angle to the set theory (Robson, 1993). Due to the nature of the study, a relation in between the attributes that make a SBV o be perceived as "good", and the attitude of people from many ages is required. This in itself, makes it impossible for the study to adopt an inductive approach as such approach does not focus on the link in between two variables but more on the way the world or an issue is interpreted (Saunders et al., 2003). Research Strategy It is important to gather as much information and different points of view as possible in order to ensure validity and to avoid bias. In this regard, the research has focused on creating triangulations with both qualitative and quantitative methods (Saunders et al., 2003). Data Collection Methods In order to collate the qualitative primary data, an early semi-structured interview was arranged with a commercial advertiser from a prominent online clothes store. In addition to this two further semi-structured interviews with SBV designers were carried out to find the main attributes that consumers find indispensable in a successful SBV advertising.These attributes were then placed into a questionnaire that was completed by 150 respondents. The results were then analysed using Fishbein's Attitude-Toward-Object model and various different cross-tabulations to achieve an in-depth understanding of the current attitude of online consumers towards SBV advertising.In addition to the primary data collection, secondary data was collated from Mintel Reports, newspapers, official bodies' websites, books, and academic journals. Secondary Research Secondary research was initially carried out to have a better understand the research topic. The research questions were then drawn from suggested problems arising from the former market dynamics in cyber space.Having a situational analysis was vital in undermining any potential gaps in the literature that would be filled with primary research in order to answer the research aim and research questions of this study.The secondary data was collated from academic journal articles, online newspaper articles, official body websites, laws and regulations, trade journals, Mintel Reports, Data Monitor and academic textbooks. Primary Data To explore the perception towards SBV in the UK, both qualitative and quantitative methods were be employed, as this triangulation would provide all the information available for the full understanding of the topic and to be able to suggest an approach to try to increase the market share of SBV based advertising in the cyber ecommerce world.This is a suitable method as, as Saunders et al. 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Ferber,Robert 1970,The Expanding Role of Marketing in the 1970s,Journal of Marketing Vol 34,pp-29-30 Critical factors in the Success and failure of Search based advertising (SBV). Please spare a few minutes to help us undertake a study critical factors with in consumers' attitudes and perceptions of SBV advertising. Please answer the following questions as accurately as possible. Thank you! Q1 Do you use the internet Yes ' No (Please do not proceed with the survey. Thank you for your co-operation.) ' Q2 How often do you use the internet ' 3 or more times a week ' 1 or 2 times a month ' Less than once a month ' Q3 How important are these advertising factors to you when selling/purchasing/searching online products Extremely Important (7) Important (6) Slightly Important (5) Neither Important or Unimportant (4) Slightly Unimportant (3) Unimportant (2) Extremely Unimportant (1) Perceived benefit of information search ' ' ' ' ' ' ' Cost of online search ' ' ' ' ' ' ' User Satisfaction ' ' ' ' ' ' ' Ability to search ' ' ' ' ' ' ' User Knowledge ' ' ' ' ' ' ' Consumer satisfaction ' ' ' ' ' ' ' Education ' ' ' ' ' ' ' Buying /Selling strategies ' ' ' ' ' ' ' Please tell us a little about yourself Interview Questions for 2-3 company executives involved in search based online advertising. (tentative) Do you think that Internet is an effective and suitable way of shopping and how has your company exploited this' Do you use internet only for searching information about the products and how do you think that ecommerce is changing the landscape of commerce. When you plan to market any good/service do you consult internet for searching the variety and details of the products' Do you use the internet to shop/sell/advertise your products online frequently' How do you maintain an online consumer base through search based advertising' What is the future of Online Shopping and Search Based Advertising Read More
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