"Role and Effectiveness of Online Advertising in Service Sector"
Vikramjit Singh Research Scholar Punjabi University Patiala
ABSTRACT
Online advertising is a kind of showcasing and advancing which uses the Internet to pass on extraordinary promoting messages to customers. It covers email offering, PC framework offering (SEM), internet organizing offering, various varieties of show publicizing (checking web standard advancing), and convenient promoting. Internet usage trends and advertising in India has been growing faster than any other media. Worldwide advertisers and sponsors are turning to online advertising due to the one of a kind and adaptable abilities of the Internet. These abilities incorporates intelligence, global reach, interactive media limit, and audience involvement. The objective of the study is to analyze the role and effectiveness of online advertisement in service sector. The current study used both types of data viz. primary and secondary data. The primary data collected through a questionnaire and the sample size was restricted to 200. In the present study Non-Probabilistic convenience sampling technique has used. The respondent has selected from different districts of Punjab, Mohali, Patiala and Fatehgarh Sahib. The study revealed that advertising through the internet is now significant part of service sector and play vital role to make or break an organizations.
Keywords: Effectiveness, Internet, Online advertising, promotional tool, Service sector. 1. INTRODUCTION
Online Advertising may be a kind of offering and promoting that uses the web to convey promotional selling messages to customers. Online advertising is an advertisement which is published on the internet. This can be useful in creating awareness of an organisation and its product and services. The first online advertisement that appeared on the web was in year 1994 (Rachel, 2011). It incorporates email offering, PC system offering (SEM), online networking offering, numerous assortments of show publicizing (counting web standard promoting), and portable advertising. Distributers utilization substance to attract viewers then offer publicists access to those viewers. Publicists will indicate content (like classifieds), design (like magazines) and feature (like TV) advertisements inside of the range prepared by the publishers. It is an expansive term wont to depict the paid publicizing that distributers set on their sites to adjust them to create the substance and administrations without charge (Wikipedia). On-line publicizing is a" two-sided business" as is promoting typically.(Rochert and Tirole 2003; Simon and Gabszcwicz, 2005)
Internet publicizing is one amongst those "hurricanes of imaginative obliteration" that may reshape many industries and change antiquated courses in which of conveying promoting messages from dealers to imminent supporters. The net promoting business contemplations looking for and mercantilism advertising territory that is gotten to by viewers through the web business onlookers ordinarily isolate the net promoting business into -
1. Pursuit publicizing that appears on list items pages.
2. Show publicizing that appears on non-pursuit web content. 3. Arranged postings that appear on sites.
International Journal in Management and Social Science (Impact Factor- 5.276) 1.1. SERVICE SECTOR
"Service sector also known as tertiary sector is essential for economic growth in any economy including India. It has emerged as the largest and fastest-growing sector in the global economy in the last two decades. The tremendous performance of Indian economy is attributable in a considerable manner to the spectacular dynamism shown by services sector. Rising urbanization, privatization and demand for services bring boom in Indian service sector. This sector continues to be a star performer and by contributing 59 per cent of GDP, it is enjoying first place among all sectors in Indian economy. In employment providing, this sector is occupying second place, next only to agriculture. "
CONSTITUENTS OF SERVICE SECTOR IN INDIA
Service Sub-sectors Activities Included
1. Trades, Hotels & Restaurants
1.1 Trade Wholesale & retail trade in commodities both produced
at home (including exports) and imported purchase & selling agent, brokers and auctioneers.
1.2 Hotels & Restaurants Service rendered by hotel & other lodging places,
restaurant, cafes & other such places.
2. Transport, Storage& Communication
2.1 Railways
2.2 Transport by other means Road, water, air transport & service incidental to
transport.
2.3 Storage Agricultural storage for agri produce, food grains,
fertilizers, manure, etc. ; Industrial storage for industrial goods, import cargo, and excisable cargo; inland container depots (ICDs)/container freight stations (CFSs) for facilitating import/export trade; and special warehouses for cold and temperature controlled storage.
2.4 Communication Postal, money order, telegrams, telephones, overseas
communication services.
3. Financing, Insurance, Real Estate and Business Services
3.1 Banking, financial services& Insurance Banks, banking department of RBI. Post office saving
bank, NBFI, employees PF & Life
insurance, postal life &non-life insurance
3.2 Real Estate, Ownership of Dwellings and Business Services
Business services include accounting, software
development, data processing services, business and management consultancy, architectural, engineering and other technical consultancy, advertisement and other business services
4. Community, Social and Personal services
4.2 Other Services Personal Services: Domestic laundry, barber, beauty shops, tailoring and others.
Community Services: Education, research, scientific medical, health, religious & other community services.
Others: Recreation, entertainment, radio,
television, broadcast, sanitary services.
Source: Computed from Central Statistical Office (CSO) data, 2013.
1.2. ONLINE ADVERTISING IN SERVICE SECTOR
"Internet is changing the way business operate in India primarily due to the very ability of this medium to do an end-to-end tracking. Online advertising is steadily seeing growth in India. Though broadband internet penetration is growing at snail's pace, mobile internet figures are rising at breakneck speed, which augurs well for online advertising growth in India. Online advertising growth at Rs 993 crores in the financial year 2010-2011 from Rs 785 crores in the financial year 2009-2010. Online display advertising grew at about 28 percent, while online text advertising registered 26 percent growth. One of the most established and dominating industries, the BFSI (Banking, financial services, Insurance) industry has started taking the internet medium more seriously than even before." ( Digital Advertising Report ). These are the key reasons for the success of online advertising in service sector.
Online Travel and Tourism : The website response tries to meet customer requirement by providing information about travel schedule, prices and make suggestions for making changes in travel plans that could result in chapter tickets.
Online Real Estate : Online real estate services are provided by websites that show listing of house, shops and flat put up for sale and rent. These sites play supporting role for property dealers. The buyers can view many properties on the screen.
Online banking : Online banking is defined as automated delivery of new and traditional banking products and services through electronic and interactive communication channels. Customers access online banking services by using electronic devices.
Online Financial and Stock Trading : Online trading is a service offered on the internet for purchase and sale of shares. In internet trading the net is used as medium to communicate orders to stock exchange through brokers website or specially provided software.
2. REVIEW OF LITERATURE
Sam et al. (2015) concentrated on that the web and banking are interlaced, with any advancement in web advances bringing about an improved keeping money experience for the customer. Publicizing through the net can be made more reachable while, at the same minute, turning into a center necessity. During the early phases of the web, when it was utilized as a data channel by banks, clients profited by recovering fundamental data posted on banks' sites. With web 3.0, banks can go above and beyond by coordinating propelled media abilities with their sites and get to the quantum of information accessible over the web to proposed the item or administrations, as well as customize it for the client.
International Journal in Management and Social Science (Impact Factor- 5.276)
configuration was delivered, taking after an eye-following technique and a self-regulated poll. Some astounding results uncovered that visitors take longer periods and higher earlier fixations to see the content than the picture. Furthermore, it was found that members fixate first on the static standard.
Wang & Doong (2014) elaborated that web promoting methodologies for medical services stay under-researched regardless of the momentum fame of these services. Because of the business qualities and lawful controls towards health services in numerous nations, doctor's facilities and centers overlooked publicizing anticipating decades. Today, not only the environment but also medical products have changed.
Payam et al. (2012) given a few experiences with respect to the adoption of web publicizing by Iranian small and medium-sized endeavors. The recent negative patterns prompting an absence of upper hand in small organizations and the benefits of web publicizing makes it basic to ponder different components influencing this zone of marketing. This study investigated 59 past related studies, bringing about a far reaching hypothetical system which clarifies the upsides of web publicizing for small to medium-sized ventures (SMEs).
Mehta et al. (2010) found that the new period showcasing exercises require mixing of ordinary and current techniques. Today's situation of advertising joining has been to a great extent because of Internet and related advancements. The Internet insurgency has prompted general coordination of electronic-advertising and ordinary showcasing attempts to make the best techniques. Banner promotions are found as a rectangular standard put on such site. It was an experimental research led in 2008 to discover the viability of pop-up and pennant notices. There were 450 respondents that included young executives working in banking, insurance, retail, telecom and hospitality divisions in Indore and Bhopal.
Belch and Belch (2008) clarified that web publicizing of items additionally accelerates the adoption of new items by the clients. At some point clients don't have predetermined thought to look for specific product yet web publicizing of items on sites stimuli their consideration towards product and their elements. All the private and additionally open division banks utilized their sites to make mindfulness about their different money related items, administrations and strategies among clients. As a client clicked to visit the landing page of any bank, information identified with most recent product or services and in addition existing items shows on the home screen in an alluring and imaginative way. Some of the time banks transfer a few recordings for better comprehension of their product or services to the clients.
Daswani et al. (2008) expressed that the development of the online web promoting industry has made numerous new open doors for lead era, brand mindfulness, and electronic business for publicists. In the online commercial center, site visits, structure entries, clicks, downloads, and buys frequently bring about cash changing hands between promoters, advertisement systems, and site distributers. Since these electronic activities have financial impact, hoodlums have additionally seeked to exploit new chances to lead extortion against these gatherings with the trusts of having some cash illegitimately change into their own hands.
Shwu-ing Wu (2007) The Internet serves as a noteworthy promoting and specialized instrument in the tourism business; it is, subsequently, surprising that there have been couple of discussions of the auxiliary relationship amongst tourism and Internet-based publicizing. This study concentrates on deciding how Internet-based promoting has influenced travel organizations working in the tourism business. The example of 605 respondents is, in this way, restricted to those with experience of both Internet-based promoting and travel organizations. Utilizing structural equation modeling (SEM), it was found that while both purchaser contact and consideration paid have an immediate relationship to a shopper's state of mind of an ad, they just by implication influence the customer's reaction.
to be considered. The creators have given profitable inputs to brand administration and publicizing on the Internet.
Shaik (2002) accomplished a study to get an understanding into use of data innovation into the promoting of services. In this paper, they examined the service suppliers are currently moving towards the Internet as an essential means of communication. In India, numerous service sector organizations have switched over to Internet to showcase their services, banks being the first adopter. These electronic promoting systems are all things considered fruitful towards accomplishing their objectives in large cities. The research directed on office-goers in a metro city in India uncovered that clients will embrace cutting edge advertising methods since they don't have sufficient energy to visit the shops. They needed all information on a tick of a catch. 3. OBJECTIVE OF THE STUDY
The objective of the study is to analyze the effectiveness of online advertisement in service sector. 4. RESEARCH METHODOLOGY :
Research Design : The combination of both descriptive and exploratory research design has been used for this study.
Sampling Unit : In this study, the sampling unit were internet user and exposed to online advertising. Sampling Size : The sample size was restricted to 200.
Sampling Design : In the present study Non-Probabilistic convenience sampling technique has been used. The respondent has been selected from different districts of Punjab, Mohali and Fatehgarh Sahib.
Data Collection : The present study used both types of data viz. primary and secondary data. The primary data collected through a questionnaire. A non-disguised questionnaire used for data collection. Secondary data collected through books, research papers, journal, articles, newspapers, earlier related studies, websites and also the use of various relevant and useful sites in relation to present study.
DATA ANALYSIS AND INTERPRETATION: Table.1
Gender of the respondent
No. of people
Percentage
Male 130 65
Female 70 35
Age of people Below 25 25-40 40-55
No. of people 40 130 30
Percentage 20 65 15
Profession Frequency Percentage
International Journal in Management and Social Science (Impact Factor- 5.276)
Income of Respondent Below 20,000 20,000 to 50,000 50,000 to 1,00,000 Above 1,00,000 No. of people 90 35 50 25
No. of people 45 17.5 25 25
Table 1 provides the demographic characteristics of the respondent. It shows that majority of respondent were male (65%) while (35%) of the respondent were female. Majority (65%) of the respondents were between the age of 25 and 40 years and 20% of the respondent were in the age group of below 25. Under the occupation profile of respondents, 35% were from service background, 29% respondent were from other profession and 26% were students.
Table2.
Level of awareness about online advertising.
Response Frequency Percentage
Aware 140 70 Partially aware 35 17.5 Not Aware 25 12.5
Table 2 shows that majority of the respondent were aware of online advertising and very less were not aware while (17.5%) were partially aware about online advertising.
Table3.
How frequently do you access the internet?
Response Frequency Percentage
Daily 100 50 Weekly twice 60 30 Weekly 35 17.5 Monthly 5 2.5
Table 3 presents the response of respondent who frequently access the internet. Half of the respondents were daily user while (30%) of the user who used internet weekly twice and only (2.5%) of those user who used internet once in a month.
Table4.
Attitude towards Online Advertising ?
Response Frequency Percentage
Table 4 shows that majority 90(45%) of the respondents said that their attitude towards online advertising was informative. A total of 65(32.5%) of the respondents said their attitude towards web advertising was enjoyable. However, 45 (22.5%) of the respondents said their attitude towards web advertising was nnoying. Table5.
Attributes of online advertising.
Response Frequency Percentage
Entertaining 35 17.5 Global reach 60 30 Cost
Effectiveness
20 10 Feed Back 25 12.5 Trust 30 15 Speed 30 15
Table 5 shows that major attributes of online advertising. Majority (30%) of the respondents said that key attributes of online advertising was globally reach because it has no geographic limits but 15% of the respondent did not trust on online advertising .
Table6 .
Online advertising are almost everywhere on internet.
Response Frequency Percentage
Strongly agree 60 30
Agree 40 20
Neither agree nor disagree 50 25
Disagree 25 12.5
Strongly disagree 25 12.5
Table 6 provides the information of the respondents (50%) agreed that online advertisement are almost everywhere on internet, but some respondents (25%) did not agree with the statement.
Table7.
Better than traditional advertising.
Response Frequency Percentage
Strongly agree 60 30
Agree 40 20
Neither agree nor disagree 30 15
Disagree 30 15
International Journal in Management and Social Science (Impact Factor- 5.276) Table8.
Online advertising in service sector.
Service sector Frequency Percentage
Banking 60 30
Tourism 40 20
Insurance 30 15
Financial 30 15
Hotels 40 20
Table 8 shows that role of online advertising in service sector. Financial services was the key sector almost 60 % respondent agreed that online advertising play an important role in service sector.
5. FINDINGS
Male respondents use internet with a good percentage of (65%) in comparison to female (35%). The majority of the respondents agreed that online advertising are more suitable medium of gaining
information about the company.
Most of the respondents (68%) agreed that they like to look at online advertisement and the rest of proportion (32%) do not like to look at online advertisement.
The internet have influence on consumers than any other mass media because the awareness level of online advertising is (87.5%).
The study discovered that majority of the respondents (50%) agreed that online advertising is better than traditional advertising but (35%) respondent did not agree with this they think traditional advertising is better than online advertising.
The majority of the respondents (50%) agreed that online advertisement are almost everywhere on internet, but some respondents (25%) did not agree with the statement and (25%) are neither agree nor disagree.
The present study found that online advertising play an important role in service sector. 6. CONCLUSION
Online advertising is a kind of showcasing and advancing which uses the Internet to pass on
extraordinary promoting messages to customers. The majority of the respondents agreed that online advertisement are almost everywhere on internet. Internet is changing the way business operate in India primarily due to the very ability of this medium to do an end-to-end tracking. Online
advertising is steadily seeing growth in India It has inculcated various new and exciting dimensions to advertising provided advertisers with tools to capture attention of target audiences with greater accuracy and efficacy. The study revealed that advertising through the internet is now significant part of service sector and play vital role to make or break an organizations.
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