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DEE HWA LIONG ACADEMY

Sta. Maria Compound, Marcos Hi-way,Santolan


Pasig City

CHAPTER I

PROBLEM AND ITS BACKGROUND

Introduction

In today’s modern society with modern technology, advertising has the power to

persuade, the power to influence the mind and shape destiny. It has the power to

change markets and improve profit margins (Thomas, 2013). Thus, there are different

ways to advertise, like on television, radio, newspaper, out-of-home and billboards.

Having this modern technology all of the companies easy to advertise their product

because of the help of internet.

Although these advertising media proved the evolution of the pace of human

life effective, advertising needs to adapt since radio and television is not readily

available for lives on the move and credible print media is too bulky and costly. Since

the advent of the Internet, it has been filling for the lapses of the earlier mentioned

media. Different media can have the technical ability to transfer messages across each

other and combining it (e.g., online journalism and radio podcasts) (Wilzig and Avindor,

2004). Therefore, the adaptation of advertising to the Internet era appears to be

inevitable.

The most accommodated activity in the Internet is Social Networking Sites

(SNS), especially Facebook. With their 1.04 billion active daily users they are topping

every other competition worldwide. This has changed the face of advertising in - this

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generation. Facebook CEO and Founder Mark Zuckerberg, found a way to make his

website much more marketer-friendly by launching what he called ‘social ads’. It is

created to help advertisers make some of the best ad campaigns (Klassen, 2007). This

allows organizations personalities, artists, politicians just to name a few create their own

personalized pages where users can interact with them by adding them or following

them. Users can also share this information to their own network through their own

feeds (Gangadharbatla, 2008) by following it, liking it and commenting on it.

Moreover, Facebook has truly revolutionized advertising by finding a way to

narrow down its target audience. To fully understand how this is achieved, people must

first take a peek as to how an advertiser on Facebook exposes his/her material. When

advertiser uploads his/her ads, Facebook will automatically tally the options toggled by

the advertisers with the user information. When Facebook finds compatible results, the

advertisement automatically shows up to the target audience’s feeds, making this

method of targeting wildly successful.

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Background of the Study

Advertisement is a powerful tool to persuade consumers to buy a certain product.

It is an advantage used by businessmen and entrepreneurs to attract customers yet it

has negative effect for the sake of those who buy products. They can easily deceive by

advertisement, taking them away from what is real.

Even though advertising is considered as the lifeblood of the businesses, it has

bad effects on its consumers. It uses manipulative tactics that influence in ways

consumers don’t even realize.

Following are the review of major research work on the topic which is related to

the present study:

Maheshwari, Seth & Gupta (2016) in their article “An empirical approach to

consumer buying behaviour in Indian automobile sector" has concluded that

advertisement effectiveness positively influences consumer buying behaviour.

Ha, John, Swinder & Muthaly (2011), in their research paper "The effects of

advertising spending on brand loyalty in services" have discovered that advertising

spending has impact on consumer’s perceived quality of the product, consumer’s loyalty

and satisfaction level.

Kumar & Raju (2013) in their paper “The Role of Advertising in Consumer

Decision Making” have found that advertisements are able to change the consumer’s

opinion about a particular product.

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Advertising has always known to be one of the key factors that affect consumer’s

decision making process. In this paper, we have attempted to combine different sets of

variables from these previous studies to test and analyse how they impact consumer’s

buying intention.

Social Imaging. Advertisements generally have influence on how we perceive

things around us. Through various types of advertisements, especially TVCs portray

how a user of a certain product is or should be. It sometimes shows the social class the

user of a product belong to, their lifestyle and attitudes.

Spending. Advertising spending can have an effect in the buying behaviour of

people in a sense that the more money spent can be linked with the quality of

advertisement and the frequency of advertisement. It may result in creating a lasting

impression in consumer’s mind. Advertising is an important extrinsic cue signalling

product quality (Milgrom & Roberts, 1986). Heavy advertising spending shows that the

firm is investing in the brand, which means the organization has a huge investment and

thus implies that they might have a better quality of product (Kirmani & Wright, 1989). In

addition, advertising spending levels are good indicators of not only high quality but also

good buys (Archibald, Haulman & Moody, 1983).

Yoo, Donthu & Lee (2000) examined the impact of the marketing mix variables

on consumer behaviour. The approach focuses on the indirect effect of these

determinants on brand loyalty. Since advertising spending affects expectations of

product or service quality in consumer’s mind (Kirmani & Wright, 1989; Yoo, Donthu &

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Lee, 2000; Moorthy & Zhao, 2000), its role should be indirectly linked to brand loyalty

implying that rather than the advertisement itself, it is how advertising affects customer

perception of the firm that is more critical in impacting consumer buying behaviour (Ha,

Janda & Muthaly, 2011).

Conceptual Framework

This study focused on the respondents’ effects of advertisement of consumer

behaviour on the respondents’. In this study, effects refer to the feedback advertisers

receive from the people like: reaction from the advertisement and response to the

advertisement.

Advertisement
Entertainment Spending

Consumer

Familiarity Buying Age

Behaviour

Social Imaging Gender

Figure 1.Conceptual paradigm of the study

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Statement of the Problem

This study aims to know the perceived effects of advertisements on academic

grade 12 students’ consumer behaviour.

Specifically, this study should be answering the following questions:

1. Is there a relationship between advertisement and consumer behaviour

2. What type of advertisement encourage a consumer to buy the products

a) Social Media

b) Televisions

c) Radio

d) Print Ads

3. What aspect of an advertisement encourage a consumer to buy

a) Tagline

b) Jingle

c) Artists

d) Product itself

Significance of the Study

This study aims to improve the importance and concepts of online advertising

for the students of Dee Hwa Liong Student, specifically students. It enlightened the

respondents on how the social networking sites influenced the entire industry of

advertising using the popular site, Facebook.

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The findings of this study are beneficial to the following:

To the Student, They will be aware of advertising strategies and tactics using the new

media. The importance of social network in our society, especially to the business.

To the companies, The extra information and knowledge it comes from the expansion

to the new social networks. Also, this study will help them in creating a better ways in

making an effective advertisement to reach their target audience and help to improve

their target income.

The Future Researchers. The researchers would be able to understand well the effect

of advertisement in consumer behavior of the Dee Hwa Liong students. By researching

about it and creating a survey about this particular topic. This research can help the

next generation with the similar topic of this research

To the Community. They become aware on the effects of advertisement of on the

consumer behavior of the individual.

To the Parents. so they will be informed on the effects of advertisement on the

consumer behavior of their children. They are also provided a strong basis that their role

is very significant.

Scope and Delimitation

The notion of determining the effects of advertisement on the strand of

academic grade 12 students’ on the respondents’ consumer behavior in Dee Hwa Liong

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Academy. Thus, the researchers decided to limit the study particularly grade 12 Dee

Hwa Liong students.

The research’s objectives are to change and strengthens the students’ mind

about choosing a particular product or good, to prevent scamming and also to avoid

fake products which are produced by good advertisement, and lastly, for the students to

be aware in choosing or basing their used products on some advertisements out there.

The researchers choose at least 150 above on academic grade 12 senior high school in

Dee Hwa Liong Academy as respondents’ we use as the subjects of the study,

academic year of 2019-2020.

Definition of Terms

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CHAPTER II

REVIEW OF RELATED LITERATURE

This chapter contains concepts and literatures, after the thorough and

comprehensive study done by the researchers. It aimed to explore and identify related

studies which can support the results in the present study.

Conceptual Literature

Advertisements

In today’s modern society with modern technology, advertising has the power to

persuade, the power to influence the mind and shape destiny. It has the power to

change markets and improve profit margins (Thomas, 2013). Thus, there are different

ways to advertise, like on television, radio, newspaper, out-of-home and billboards.

Having this modern technology all of the companies easy to advertise their product

because of the help of internet.

According to Susan HC and Jae H Pae (2002) the global advertising literature

focuses on standardisation and customisation from a strategy perspective, without

much consideration of consumers' perceptions toward advertising. This study aims to

investigate consumer perceptions of customised and standardised TV advertisements in

the China market. The moderating roles of brand familiarity and execution style on the

advertising standardisation have also been observed. Therefore, well-known brands

with transformational appeal are more likely to succeed in China.

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A study by Rajagopal (2011) the impact of radio advertisements on urban

commuters towards buying behaviour in retail stores and attempts to determine the role

of radio advertising on dissemination of information on the sales promotions. The impact

of radio advertisements on the store choice and buying preferences are analysed based

on empirical investigation.

On the otherhand, Ian Linton (2019) Print media advertising is a form of

advertising that uses physically printed media, such as magazines and newspapers, to

reach consumers, business customers and prospects. Advertisers also use digital

media, such as banner ads, mobile advertising, and advertising in social media, to

reach the same target audiences. The proliferation of digital media has led to a decline

in advertising expenditure in traditional print media, but print isn't dead.

Social Network Site

Over the past years, a social networking occurrence has surfaced. Social

Networking Sites (SNS) have grown from a niche to a mass online activity, in which tens

of millions of internet users are engaged, both in their leisure time, and at work (Cachia,

2008). Communication and information are some of the factors that engaged people to

socialize within a community. Nowadays, it is rampant in our society to communicate

and to get updated in daily news, advertisements and information. This is because of

the service provided by the Social Networking Site or SNS.

SNS is defined as a web-based services that allow individuals to create a public

profile within an enclosed system, articulate a list of other users with whom they share a

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connection with and to outlook and navigate their list of connections within the system

(Boyd and Ellison, 2013). Basically, it is an online application or program that uses

internet services which can build social communications and social relations among

people.

The main objective of SNS is the practice of increasing the number of one's

production and contacts by building associations through individuals (Rouse, 2015). Its

concept is to provide a rapid interaction of one person or group to another.

The emergence of Social Media has changed the way consumers interact

together but also with companies. Consumers, through their growing use of Social

Media and by using word-of mouth, have now a powerful and even greater influence on

peers. Social Media platforms and tools allow users to share contents, recommend

products and tell about their positive and negative consumers experience with

companies (Brown, and Hayes, (2008).

Therefore, SNS gets to connected with other people such as your families,

relatives and friends worldwide. It helps the people to send a message even do there

fare from each other and allow them to interact with other people.

Some of examples of famous social network sites we are using are Twitter,

Facebook, Instagram, and Youtube. All of this are having their on usage, function, and

applications.

Online Advertisements

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Advertisements have been part of people’s daily life. It is everywhere. People

hear advertisement through the radio, read on newspaper or magazine and even pops

up on the internet and on social networking sites while browsing and searching (Dyer,

1982).

Like how traditional advertisements are the lifeblood of traditional media, a main

chunk of the Internet economy nowadays is being propelled by online advertising,

wherein it effectively subsidized many websites, one of which is Facebook.

(Gangadharbatla, 2008). In Online Advertising, consumers can now interact

electronically and instantly which can be perceived as the future of advertising as

opposed to other forms of advertising like TV advertising (Yaakop and Hemsley-Brown,

2011).

Today, Facebook is the fourth most visited website in the world (Duggan et.al,

2013). With such prevalent use, it has turn into a popular place for advertising. Thus,

advertisements placed on SNS, such as Facebook, may give researchers more control

over targeting recruitment advertisements, produce more participant diversity, and

reduce the prevalence of ‘professional participants’ who respond to ads. (Dean, et.al,

2015)

However, certain issues can be obstacles or springboards to the success of

online advertising like advertising credibility, advertising avoidance, privacy trust and

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interactivity (Mohamed, 2013).These factors may limit or enhance the audience interest

in the advertised product and/or services.

SNS Advertising

SNS emerged as one of the most powerful media for advertising across the

globe. Companies had a great shift in budget investing less from high cost in advertising

because of SNS advertising (Khanna and Saxena, 2013). Jackson (2011) stated that

SNS has the ability to increase our networking potential or work with others regardless

of distance presents new ways for us to do business.

Social networking has become one of the most popular online activities and

account for most of the time spent online by internet users (Curran, et.al, 2011). SNS

such as Facebook and Twitter are popular advertising locations because SNS is also

popular among the target audiences as well, especially between the young adults

(Stutzman, et.al, 2013). Marketers now have a new window of opportunity to target a

specific demographic: the young adults and students, through social media. Marketers

also experienced advancement in the interaction with their advertisements through

comparison in the click-through rate (CTR) of SNS advertising rather than the slowly

fading banner type advertisements (Mohamed, 2013).In fact, one out of every five

online ads is found in SNS (Curran et.al, 2011).

According to Zhu Yan (2007) the advertisement translation can be defined as a

dynamic process of ostensive-inferential interpretation. Relevance is a very important

factor in the course of linguistic communication of achieving the advertising functions.

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The validity of advertisement translation is influenced by cognitive contexts, but it is

relative to the degree of convergence between the relevant factors. To improve the

validity of advertisement translation the most effective strategies are seeking the optimal

relevance of linguistic expression, cultural images and canonical form as well as

information content of the discourse.

According to Rajesh Kumar Srivastava (2010) global advertisement will be

effective and how it is perceived; is it affected by consumers' age, education, religion

besides collectivism, and individualistic behavior.

Consumer Behaviour

Shiffman and Kanuk (2004) explain the meaning of “consumer behavior” as the

behaviour that consumer behaves in the form of acquiring, buying, using, evaluating, or

consuming product, service and idea to fulfill own need, and be the study of the decision

making of consumer in spending resources, both money, time and power for consuming

products and services that included; what to buy, why to buy, how to buy, when to buy,

where to buy, and how often to buy.

A study by Sharma (2007) finds that nowadays consumer is not easily swayed by

a celebrity in an ad but he needs full fledge information about the product also, followed

by brand name, overall appeal, and music/ jingle. Advertisements being endorsed by

celebrities are found to be less attractive and that the use of celebrities may not change

the buying behaviour of consumers significantly.

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Wertime and Fenwick (2008,) added that ‘consumers are more likely to be

participating than watching’ stating that these last years we have been witness of a shift

in the consumer behavior from being ‘consumers as viewers’ to ‘consumers as

participants. This new behavior is reflected by their increasing use of Social Media to

become a participant. Consumers’ purchasing decision-making process appears thus to

be influenced by Social Media in its different stages.

According to, Rose et al.’s (2009) The importance of examining sub‐cultural

attitudes when assessing the animosity of individuals from one nation toward the

products of other nations.

There is a wide range of factors that can affect consumer behaviour in different

ways. These factors are divided by Hoyer et al. (2012) into four broad categories:

situational, personal, social and cultural factors.

On the other perspective, leonidou et. al’s (2019) the personality and cultural

traits were found to be important predictors or moderators of consumer attitudes and

behavior, their relationship to consumer animosity has not yet been studied.

Research Literature

The following study aimed to clarify and give details about the insight of

consumers to the modified ad placement on social network site.

In the study of Advertising on social network site, Curran et.al, (2011) states

that “Facebook marketing can target advertisements based on user’s demographic

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profiles and stated interest, likes and dislikes, offering advantages over alternative

forms of advertising.” Facebook also has the ability to change the consumer’s buying

behavior. If the consumer wants to avail of a product, they now log in to Facebook and

view the comments of their peers regarding that product (Curran, et. al., 2011). People

tend to rely more on the experiences of others about a certain product or services.

Yaakop, et al., (2013) stated that the marketers and advertising designers can

also understand and pay more attention on how the users of Facebook perceive the

advertisement when making advertising decisions.

Weigmann (2011), however, concluded in her study that users do not purchase

products because of Facebook. She continues to say that users are not aware of ads in

Facebook. This may be due to the small attention span of users. According to the

Statistic Brain Research Institute, the attention span of humans went down by 33%, to

only 8.25 seconds in 2015. Furthermore, Weigmann (2011) said that users do not let

Facebook influence their purchase decisions. She further argues that users are

selective on who they interact with on Facebook.

Synthesis

Consolidating all the aforementioned studies and discussions, the

following insights have been emphasized: Cachia (2008) and Boyd and Ellison (2013)

conferred the significance and the effects of SNS in today’s generation, while Yaakop

and Hemsley-Brown (2011), Dean, et.al, (2015), Curran, et.al, (2011) articulated the

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competence of using SNS, particularly Facebook, as a coherent way of advertising

products or services within your chosen target audience. Meanwhile, the factors that

may obstruct the success of online advertising were discussed Madden (2012).

Innovation in online advertising is inevitable. Advertisers nowadays have this

new scheme to promote and introduce their advertisements through social networking

sites. This idea helps the online advertisements click in just a short span of time.

Facebook is their most effective tool in online advertisement in which most of their

target audience is an active user. Using Facebook became an online daily routine of an

individual. However, not every individual has the same interest on how this application

can help them magnify the use of this SNS.

Facebook is the most powerful social networking tool that can accommodate all

the necessary inputs in online advertising and it produces optimum results for both the

users and advertisers.

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CHAPTER III

METHODOLOGY OF RESEARCH

This chapter includes the research methods to be used, target respondents of

the study, data gathering instruments, data gathering procedure and the statistical

treatment of data.

Research Design/ Paradigm

Respondents of the Study

Research Locale

Dee Hwa Liong Academy is located in Sta. Maria Compound, Marcos Highway,

Santolan, Pasig City. It is a Chinese-Filipino academic school wherein it is established

on year 2001.

Data Gathering Instrument

The questionnaire used was validated by experts; it composed of sixteen (16)

questions. The given questions are sufficient to know the objectives and this will also

help prevent unnecessary or irrelevant questions.

The survey questionnaire focused in the effects of advertisements on the

consumer behavior of Dee Hwa Liong academic grade 12 students. Furthermore, the

questionnaire paid attention to the relevance of the Ads to students.

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One hundred seventy-nine (179) respondents were involved in this study. All of

which are academic grade 12 students of Dee Hwa Liong Academy. The respondents

were chosen through Probability sampling.

Data Gathering Procedure

The data for this research were collected using a survey questionnaire. The

survey was created using suitable questions modified from related research and

individual questions formed by the researchers. The survey was composed of 16

questions, which were related to the respondent’s perception about Advertising

placement.

Respondents were given enough time to answer, and then the researchers

collected the data the same day. The researchers made sure that the objective in the

study and instructions were explained.

Statistical Treatment

The researchers used Slovin’s formula to get the percentage of the estimated

sampling size of the respondents.

The formula used for Slovin’s formula is as follows:

n = N / (1 + Ne2)

n = number of samples

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N = total population

E = error tolerance

The data collected from the field were examined. Statistically weighted mean

was used in answering the research questions. The formula for getting the weighted

mean is as follows:

Weighted mean = Σwx/Σw

Σ = the sum of

w = the weights.

x = the value.

The response options in the instrument are weighted as shown below:

LEVEL OF SCALE OF
AGREEMENT INTERPRETATION

1 Never 0.5 – 1.49

2 Rarely 1.5 – 2.49

3 Seldom 2.5 – 3.49

4 Often 3.5 – 4.49

5 Always 4.5 – 5

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CHAPTER IV

RESULT AND DISCUSSIONS

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CHAPTER V

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

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SURVEY QUASTIONAIRE

NAME:_____________________________ DATE:________________

STRAND:___________________________ AGE:_________________

1. How many hours do you use technology? Give an estimate.

 7 hours a day and more

 4 to 6 hours a day

 1 to 3 hours a day

2. What are the reasons of using social media?

 For personal purposes

 For business purposes

 All of the above

3. Where did you mostly see the advertisement?

 Social media

 Television

 Print ads

If social media, please proceed to no. 4. If television or print ads, please proceed

to question no. 12

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4. Check the respective types of Advertisements you see on your social media

page.

 Video Ad

 Photo Ad (advertising on social media is a post of an image)

 Offer Claims Ad (where a business can promote a discount on a product

or service)

 Carouse Ad (allow advertisers to showcase multiple products within one

ad)

 Page Ad (advertising on social media promoting a page)

5. Do you recall the products or services after having seen it on social media?

 Yes

 No

If yes, please give some name of the products that you recall:

____________________________________________________________

6. Does repetition of the advertisement you see on social media help you remember

them?

 Yes

 No

7. Are the advertisements on your social media accurately shown your interest?

 Yes

 No

If yes, proceed to Question 8 to 11. If no, proceed to Question 12.

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A S R
O N
L E A
F E
W L R
NO QUESTION T V
A D E
E E
Y O L
N R
S M Y

Do you search for the

8 products or services

suggested to you?

Do you click on any products

or services recently that are


9
similar to what is suggested

to you?

Did you list the

10 product/services as your

interests on Facebook?

Do you think social media

11 advertisement influence your

purchase decisions?

12. Where do you prefer to buy a product?

 Store

 Online
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13. Have this advertisement influence you to buy/entertain their product/service(s)?

 Yes

 No

 Sometimes

14. What made you buy/entertain the product/service(s)?

 It was interesting.

 I was looking for the exact product or services.

 I was looking for a similar product or services.

 My friends bought/entertained the product or services.

 Others (please specify) _____________________

15. What made you ignore the advertisement?

 It was irritating.

 I am not interested.

 It was spamming my feed.

 I was not looking for the product or services.

 Others (please specify) _____________________

16. What did you consider to buy a product, because of the?

 Product

 Tagline

 Artists
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