(The) influence of internet searches on consumer purchasing decisions

다국어 초록 (Multilingual Abstract)

The purpose of this study is to examine the influence of the internet searches on consumer purchasing decisions for new products and services. To this end, this study considered the TV advertising effects on the consumer decision-making process in terms of awareness and preference, and then it examined the search query volume as the new consumer behavioral pattern. In this way, the study develops an integrated model to analyze various factors of the advertising effects. The proposed model analyze TV advertising sales effects along with changes in consumer behavioral patterns, specifically the consumer decision-making process, caused by exposure to TV advertising.
Empirical analysis is conducted by three econometric methods. Two of them are the “simultaneous equation model and path analysis”. These methods address the endogeneity and causality relationship issues of various advertising measures. The other method is random utility model. This model deal with internet search query data as aggregate level of consumer demand. These models identify the major variables of the advertising effects in the consumer decision-making process. The estimation results proved that internet searches for product information influences purchase decisions, which marks a change in the consumer behavior pattern. Also, TV advertising and the search query volume are closely related. Examining each variable’s effectiveness has strategic implications to maximize the advertising effects in the consumer decision-making process. This study showed that changes in consumer behavioral patterns should be considered in measuring advertising effectiveness. This approach could be a step toward understanding Internet searches’ influence on consumers’ purchase decisions. Finally, this study could be used to formulate companies’ advertising strategies and government advertising regulations because consumers might base their purchasing decisions on Internet search results rather than TV advertisements.

목차 (Table of Contents)

• Abstract iv
• Contents vi
• List of Tables viii
• List of Figures x
• Chapter 1. Introduction 1
• 1.1 Research Background 1
• 1.2 Research Objectives 5
• 1.3 Research Framework 9
• 1.4 Outline of the Study 11
• Chapter 2. Literature Reviews 12
• 2.1 Consumer Behavior in Decision Making Process 12
• 2.2 Advertising-Sales Response 25
• 2.3 Advertising and Consumer Behavior 37
• 2.4 Limitations of Previous Literatures and Significance of the Study 46
• Chapter 3. Models 50
• 3.1 Measurement of the Advertisement Effects 52
• 3.2 Endogeneity and Causal-relationship in TV Advertising Effects with Sales 55
• 3.2.1 Simultaneous Equation Model 57
• 3.2.2 Structural Equation Model: Path Analysis 67
• 3.3 Behavioral Model for Aggregate Demand and Consumer Preference 79
• 3.4 Characteristic Comparison of Models 85
• Chapter 4. Empirical Analysis 87
• 4.1 Data Description 87
• 4.2 Estimation Results and Empirical Findings 96
• 4.3 Behavioral Model for Aggregate Demand and Consumer Preference 108
• Chapter 5. Conclusions 120
• Bibliography 125
• Appendix A: The Results of Stationary Test 133
• Abstract (Korean) 141

참고문헌 (Reference)

1. Marketing models, Lilien, Gary L., PHI Learning Private Limited, , 1992

2. AIDA sales funnel, Lewis, , 1898

3. Writing thesis using SEM, Kim, Hong, , 2009

4. CM VALUE Annual Report 2011, Korea CM Institute, , 2011

5. Do online reviews matter? ?, Duan, Whinston, , 2008

6. Media multitasking (Vol 71):, Wilson, , 2008

7. Econometric Analysis (5th ed), Greene, , 2002

8. Sales effects of media weight, Haley, , 1978

9. Attitude Affect, and Behavior:, Cohen, "Attitude Affect, , 1987

10. Consumer behavior (Vol 10thed):, Miniard, Engel, Blackwell, , 2005

11. Diffusion of innovations (Vol 5th ed.), Rogers, , 2003

12. Automobile prices in market equilibrium, Pakes, Levinsohn, Berry, , 1995

13. Consumer behavior : a strategic approach, Assael, Henry, Houghton Mifflin, Consumer Behavior : A Strategic Approach, , 2004

14. Distributed Lags and Investment Analysis, Koyck, , 1954

15. Televising and web advertising synergies, Thorson, Chang, , 2004

16. Predicting the present with google trends:, Choi, Varian, , 2009

17. Advertising and the diffusion of new products, Horsky, Simon, , 1983

18. How Advertising Works: What Do WeReally Know?, Tim Ambler, Vakratsas Demetrios, , 1999

19. STRUCTURAL EQUATION MODELING and AMOS180/19.0:, Lim, Lee, , 2011

20. The carryover effects of televisionadvertising, Lee, Park, Han, , 2009

21. How Advertising Works: A PlanningModel Revisited, Vaughn, , 1986

22. Social construction of preferences: Advertising!, Benhabib, Bisin, , 2010

23. Discrete choice methods with simulation (2nd ed.), Train, , 2009

24. MCR (Media & Consumer Research)2010 Annual Report, Korea Broadvast Advertising Corporation, , 2010

25. Structural equation models in the social sciences, Goldberger, Duncan, Structural equation models in the socialsciences, , 1973

26. The Consumers' Control of Media Continues to Grow, BIGresearch, , 2006

27. Structural equation modelling: Adjudging model fit, Paul, , 2007

28. A social welfare analysis of mobile handset subsidy, Kim, Kang, , 2012

29. Effective Frequency: One Exposure or Three Factors?, Tellis, Effective frequency: One exposure or three factors?, , 1997

30. Theory of Online Consumer's Behavior and Empirical study, Yoon, , 2002

31. Time-series models in marketing : Past,present and future, Dekimpe, Hanssens, "Time-series models in marketing : Past, , 2000

32. Retrieved from http://wwwdesignlog.org/2511322#.Uq1zcvRSYfF, Maru, , 2008

33. Dummy endogenous variables in a simultaneous equation system, Heckman, , 1978

34. Managing media and advertising change withintegrated marketing, Malthouse, Calder, , 2005

35. 240 million Mobile Smartphone Users to Stream TV Services by 2014, Miller, , 2012

36. Causal analysis of advertising expenditure andbusiness performance, Koh, Kwon, , 2009

37. Evaluating the effects ofadvertising and sales promotion campaigns, Roth, Jacques, Whan Park, , 1988

38. How advertising affects sales:meta-analysis of econometric results, Assmus, Lehmann, Farley, , 1984

39. Structural equation modelling:guidelines for determining model fit, Hooper, Coughlan, Mullen, , 2008

40. The estimation of a simultaneous equation generalized probit model, Amemiya, The estimation of a simultaneous equation generalized probitmodel, , 1978

41. Maintaining a customer focus in an interactive age business books R, Spalter, , 1995

42. Consumer behavior : implicationsfor marketing strategy (Vol Rev. ed), Best, Coney, Hawkins, , 1983

43. Econometric measurement of the duration of advertising effect onsales, Clarke, , 1976

44. The effect of certainty on exposure to information prior to commitment, Mills, , 1965

45. Report of the change ofconsumption behavior according to the rise of price, Industry, Korea Chamber of Commerce, , 2012

46. Brand awareness in businessmarkets: When is it related to firm performance?, Schmitt, Homburg, Klarmann, , 2010

47. Measuring the sales and profit results of advertising: amanagerial approach:, Campbell, , 1969

48. Structural Model Evaluation and Modification: An Interval EstimationApproach, Steiger, Structural model evaluation and modification: An intervalestimation approach, , 1990

49. Marketing in Hypermedia Compute-Mediated Environments: Conceptual Foundations, Novak, Hoffman, , 1996

50. Path coefficients and path regression : Alternative or complementaryconcepts?, Wright, , 1960

51. Investigating consumerpurchase behavior in related technology product categories, Sriram, Chintagunta, Agarwal, , 2010

52. Structural equation modeling with AMOS : basic concepts, applications, and programming, Byrne, Barbara M, Lawrence Erlbaum Associates, "Structural equation modeling with AMOS: Basic conceptsapplications, , 2001

53. Does TV advertising really affect sales? The role ofmeasures, models, and data aggregation, Tellis, Weiss, "Does TV advertising really affect sales? The role ofmeasures, , 1995

54. Latent variable models : an introduction to factor path, andstructural analysis (Vol. 2nd edition), Loehlin, "Latent variable models : an introduction to factor path, , 1992

55. Rethinking fit assessment in structural equation modelling: Acommentary and elaboration on Barrett (2007), McIntosh, , 2007

56. The effect of advertising onbrand awareness and perceived quality: An empirical investigation using paneldata, Draganska, Doraszelski, Clark, , 2009

57. The brand awareness-to-preference link in businessmarkets: a study of the semiconductor manufacturing industry, Kijewski, Yoon, , 1996

58. Cutoff Criteria for Fit Indexes in Covariance Structure Analysis: Conventional Criteria Versus New Alternatives, Hu, L.-T., Bentler, P. M., LAWRENCE ERLBAUM MODELING, Cutoff criteria for fit indexes in covariance structureanalysis: Conventional criteria versus new alternatives, , 1999

59. Assessing a new advertising effect: Measurement ofthe impact of television commercials on Internet search queries, Zigmond, Stipp, , 2010

60. The use of structural equation models in consumer psychology: Amethodological dialogue on its contributions cautions, and concerns, Priester, "The use of structural equation models in consumer psychology: Amethodological dialogue on its contributions cautions, , 2010