The Internet is a new commnnications vehicle that is changing brand marketing
in significant way. In the few years the web has been available for marketing
and sales, online advertising has already changed considerably. It has extended
beyond the small, static web banner to totally interactive full-screen ads.
Brand marketers now have more online advertising choices that help build brand
awareness, comprehension, preference and loyalty. Some traditional brand marketing
techniques, including sweepstakes and sponsorships, have made their way onto
the web. Brand marketers are beginning to take further advantage of the medium
for branding as audio and video can be used to a greater degree. Online advertising
is beginning to behave much like a website in that marketers are primarily interested
in the branding impact of the user's experience with the ad. In contrast several
acconnts argue that Internet Advertisements itself is effective in generating
sales. Gaffney (2001), Kranliold (1999) and Schlosser et al. (1999) found
that people generally trusted the commercial content of an Internet Advertisement
more than an add in general.
A number of recent papers have presented the issue of brand management on the
Internet (Riley and Lacroix, 2003). The basic rules of branding and essence
of the brand at the same off and online are accepted by Chan (2001), de Cliematony
(2001) and Clauser (2001). However, new medium such as Internet advertisement
may require adjustment at the executional level, for example, in the way information
is presented (Riley et al., 2003). In addition, the degree of control
maintained over the brand may need relaxing, for instant, immoderate chat fonuns
and commmrities built within the brands website (de Cliematory, 2001 ). Ind
and Riondiono (2001) indicated a brand's presence on the web should be conceived
in a way that is sympathetic to the technology and the environment; the web
site should be consisted with the whole brand presentation and should reflect
the overall brand identity. Brand literature like wise show how active brand
commnnication helps to build and strengthen brand loyalty. Despite the potential
of Internet marketing for building and maintaining brand and brand loyalty,
it lias only recently started to gain impotency in corporate marketing (Merisavo
and Raulas, 2004; Na and Marshall, 2005; Lace and Jomthan, 2004).
Malaysia can be considered a late starter giventhe recent spate of Internet
interest. Although it has been a few years since the commercialization of the
Internet, Malaysians still mainly regard it as a novel means of commrmication
and entertairnnent, but not yet as a medium for commerce. A major obstruction
to Malaysias involvement in electronic businesses is the enterprise attitude
(Ng. 2000). Malaysians tend to be followers rather than pioneers
or first-movers in creating intellectual property (Lee. 2000). Many
fear failure and some dare not take the step into the Internet economy because
it is an unknown space (Ng, 2000). Malaysia enterprises have to react fast to
the rapidly changing envirornnent. They need to grab the opportunities and take
the risk to change the Internet space for business on the Net. Many companies
in Malaysia are reluctant to advertise their products and services through Internet
due to failure in the market of advertising campaign. Thus, the development
oflnternet Advertisement is still in initial stage in Malaysia. Therefore, it
is important issue to identify whether the Internet advertisement is capable
to build brand among consumers and what are the attributes of Internet advertisement
might help the marketers to build brand among consumers?
Building a successful major brand, whether for a company or a new product,
requires strategic planning and a major investment. The new company then spent
millions of dollars to create awareness and position this new brand. According
to Drmcan (2002), the basic steps in building a brand are shown in the following
list. Although these brand building steps are numbered progressively, then often
overlap, especially the second third and fourth creating awareness, positioning
the brand and creating a brand image. The steps are: a) Select a name and symbol
to represent the company or product; b) Create awareness/brand identity of name
and symbol (if used) and what the product is or does; c) Position the brand
to begin differentiating it from competing brands; d) Create a brand image to
help further differentiate the brand and to make it easier to recognize and
recall and e) Create trust in the minds of customers, prospects and other stakeholders
about the brand by maintaining consistency and delivering on expectation.
Advertising can be classified into two categories: brand building and directional
(Fernandez and Rosen, 2000; Lohse and Rosen, 2001). Brand building advertising
is synonymous with product advertising and is commonly seen in traditional mass
media, including TV, radio, magazine and newspaper. Brand building advertisements
tend to be product/service (or retailer) oriented with the purpose to establish
a positive image and creating demand for a product or service that leads to
eventual of advertising has covered studies from both advertisers and consumers'
PROCESS OF ONLINE BRAND BUILDING
While the resources and value proposition of company has been clearly confirmed,
the next stage is to commmricate the value of brand and then reinforce brand
association to start the process of usage and experience and keeps it turning.
Fig. 1 provides guideline of online customers' choice pipeline,
while represents the customer purchasing process as a series of distinct resource,
each represents a different stage and relationship to brand (Internet Branding.
Unaware: This is the first stage that the potential customers have not any idea about the brand. The main frmction of this stage is to make aware of those potential customers.
Aware: All of these potential customers are aware about the new or extended brand in this stage, but they do not access the website or purchase the product in this stage.
Browsers: In this stage, customers are showed their interest and browse the website. They can refuse to browse also. On the other hand they can purchase product of the brand and become a cment customer of the brand or discord the offering and become refuters.
Loyal: This stage includes all of the customers who want to purchase again. These customers can be an important source of positive word of mouth, which usually accormts for the lion's share of customers visit to a web site. Then the company can commnnicate with these loyal customers through e-mail lists, websites and chat rooms etc, which are the more positive attributes of Internet.
Refuses: It includes all of the customers who do not buy or buy only
one time because they are dissatisfied with product or services.
The accumulation of refuses depends of brand ability to fulfil expectation.
Companies must consider and carefully measured how they can influence the flow
rates between stages, particularly where bottle necks occur.
The most significant step where is the main fnnction to aware the customers
about the brand's value proposition. And it is the more difficult for the online
that the offline, due to lack of physical presence. Company can commmricate
through the online including e-mail notification, Internet Advertisement etc.
but the Internet Advertisement is the most effective way then e mail notification.
Innovation and creativity are also important factors in gaining attention into
days online emporium. Attracting customers is only the first step in building
an online brand. There are 8Cs that are affected on all of these steps.
Figure 2 showed how and where these 8Cs are affected
(Internet Branding. 2003). The 8Cs are Convenience, Commmrication, Customers,
Consent, Content, Commnnity, Customization and Connectivity. Companies should
take more initiatives for the customers before they move on. The key factors
of this stage convenience beside to develop the value proposition. And this
convenience should embed with attractive content. The content must be meaningful
and have the capability to realize attraction to the customers. In this point,
the goal of the company is to increase conversion rate and engaging them on
an on going basis result in increased product purchase opportunities. Other
muggy applications include comities and customization.
Internet has the capability to keep track of the potential customers. Company
can obtain information about the Internet purchase and refuse as well. By using
all of the information that collect, can create extra value for the customers
and easily they can satisfy the customers. This will encourage the customers
to spend more time and money on the site. Furthermore, changing content and
effective customers care help to create switching barriers and encourage customers
to return and repeat the cycle. This study gives emphasis on the brand building
through Internet Advertisement, which has great impact on first which attribute
of the Internet Advertisement has more impact on building brand, then it will
be easy for the marketers to make and set the Internet Advertisement according
Advertisers in the offline world realize that consumers may not have an immediate
need to purchase a product or service at the moment it is being advertised.
Realizing this aspect of consumer behaviour, a common advertising strategy is
to build awareness of a product and form positive associations between that
product and a consumer over time so that when the need arises to purchase from
a given category, a consumer is more likely to consider that advertisers
product. While popular in the offline world, this notion of an nnconscious association
between brand and consumer has not been readily adopted in the online advertising
strategies of brand oriented advertisers. These advertisers are blinded by
click-through even though it connterintuitive to branding philosophy (Briggs
and Rallis. 1999). A banners ability to support a brand, create brand
associations, as well as change attitudes toward a brand (all measures of effectiveness
in the offline world) was also quantified. Others (Leong et al.,1998)
also recognize that click through may be limited in its application of effectiveness.
Recognizing that banner advertising can have an impact on branding, it would
be helpful for those designing online advertising to nnderstand the characteristics
of an online ad that are related to its success on brand-oriented metrics. In
order to hypothesize what some of these characteristics might be, it is helpful
to review some learning theories smonnding consumer behaviour.
MATERIALS AND METHODS
A structured questionnaire was used to collect the necessary data whereby it
was served as primary data to answer the research questions and objectives pertaining
to brand building through Internet advertisement. The survey questionnaire consists
of 15 distinct sections, each of which contains question pertaining to different
parts of the study. A convenience sampling method is used to collect data mainly
from the cment Internet users in Klang Valley which has the highest concentration
of Internet users. Even though the sampling method adopted has limitations in
terms of generalisibility as compared to other method of sampling, it is assumed
that the sample represent the whole population of Internet users in Malaysia.
The study sample consisted of 591 from different places in Malaysia. This survey
had mainly conducted by the self administrated. To ensure more respondents,
e-mail surveyed also conducted for the study. Survey had been conducted for
six months started and last reminder was sent after six weeks. A list of e-mail
users currently registered with TMNet was obtained from Telekom Malaysia and
the survey questionnaire was only e-mailed to those Internet users who agreed
to participate in the survey. This step was taken to avoid complaints from the
Internet users and also to increase the number of respondents. Apart from the
ability to reach large target respondents and inexpensive way to conduct the
survey, the survey through e-mail also enabled respondents to easily provide
extensive responses to open-ended questions in describing their experiences
in respect of brand building through Internet advertisement. This is particularly
important because Internet shopping in Malaysia is till new and at the infancy
stage, extensive responses from open-ended questions that provides valuable
input to the study so that a better rmderstanding of brand building in Malaysia
can be achieved.
Total 650-sample sizes are formd to be adequate for this study, of which 600
questionnaires were received. Each of the response received was screened for
errors, incomplete and missing responses. Efforts were also taken to contact
the affected respondents through e-mail for clarification and corrections, especially
for missing or blanks responses. However, those responses that had more than
25% of the questions in the survey questionnaire that have been left unanswered
or incorrectly answered were discarded from data analysis. For those responses
that had a few blank answers (less than 25% of the questions) and which involve
5-point interval-scaled questions were assigned with a mid-point scale of 3.
After the screening process was carried out, only 591 responses were considered
complete and valid for data analysis. This represents a success rate of 90%,
which is considered to be good in view of time and cost constraints.
HYPOTHESIS OF THE STUDY
Brown and Stayman (1992). Stone et al.,. (2000) found that when consumers
like an advertisement about a brand, they are more likely to develop a linking
for the brand and are more predisposed to buy it. This study focuses on five
facilities of Internet Advertisement that have impact on brand building such
as customization facility of Internet Advertisement, quick feedback, Image of
Internet Advertisement, purchasing facility through Internet Advertisement and
Style of Internet Advertisement.
on customersexact needs. It offers higher selectivity than any other
media. The individual actively expose himself to the advertisement. The user
customizes the advertisement to his own needs by choosing hyperlinks to negative
him arormd. So, it helps the advertisers to navigate and provide a content which
attracts the user to spend as much as possible on the site, by which advertise
can in term about the brand to the current and new customers which indicates
significant impact of this variable to build a strong brand name.
H1 : giving customization facility on Internet Advertisement is
expected to increase potentiality of Internet Advertisement to build brand.
Quick feedback: Internet Advertisements have a big advantage that it can interact with its users. Interaction with user could include answering specific individual question which are not answered in FAQ. General custom is 12 h replay time (Uppgren. 1995). This changing time frame has implications for resources allocation and consumer loyalty (0. gunsheye. 1996). However. the research showed that it is very important role on building brand. This is poor service customer service, if customers go through the trouble of filling out a form and e-mail it; customers expect to get feedback if not. Customers get negative perception of the brand of a company. Thus, this study takes this variable as important component for building brand and test the effect on the brand building.
H2 : quick feedback facility of Internet Advertisement is expected to better result on building brand.
Image of internet advertisement: Image of Internet Advertisement appeal
more to customers emotional than rational sense. Informative advertisement can
be combined with image advertisement. An Internet presence has to some extend
effect the brand image, as the media is part of the message. Internet presence
indicates that the company is dynamic, innovative and moving with the times.
Advertisers with low audience and product fit choose mainly an image strategy,
as defined in general fit. As users have low interest in the product as such
advertising have to attract visitors by adding value to the consumer through
an innovative novel web site. This has been done through advertising (www.bbdo.dk.1996). Thus, the present study takes this image as an important factor for building
brand and measure its impact on building brand.
H3 : increase the quality of image on Internet Advertisement is expected result to increase potentiality of Internet Advertisement to build brand.
Purchasing facility through Internet Advertisement: One of the great innovation and advantage of Internet Advertisement is customers can give order and purchase through Internet Advertisement that other media do not offer. Customers can shop from home and select items they like and purchase. This facility provides great consistent for the customers. It reduces time as well as travel cost for the customers. Even non-general mail order companies can benefit from this extra distribution channel. Therefore, it was tested the impact of this facility on brand building.
H4 : providing purchasing facility through Internet Advertisement is expected
to increase potentiality of Internet Advertisement to build brand.
Style of internet advertisement: The potential context effect that could
affect brand building is the style of Internet Advertisement. Two studies have
examined that effect of competing advertising on reception of Internet Advertisement,
but all have focused on the effect on advertisement click through rather than
brand building, which is a more appropriate measure for an advertisement that
is Internet Advertisement has effectiveness or not (Block and Morwitz. 1999).
Hoffman et al. (1996) showed that bllilller ads containing simple yet
efficient copy could improve the click through rate of banner advertising. In
a subsequent study. Hoffman et al. (1996) showed that increasing the
number of other ads armmd a banner ad on a web site has no affect on click through
rates. In this study I have tested the effect of Internet Advertisement's style
on building brand
H5 : different styles of Internet Advertisement might provide better result to build brand through Internet Advertisement. The following model is developed for above hypotheses.
Here, X1 is Customization facilities, X2 is Quick feedback,
X3 is Image of Internet Advertisement, X4 is purchasing
facility through Internet Advertisement and X5 is Style of Internet
Advertisement. Dependent variable is Yi which represents the brand
building through Internet Advertisement. A multiple regression analysis is carried
out in order to determine the factor those described in hypothesis have significant
impact on building brand.
RESULTS AND DISCUSSION
Table 1 showed that female in Malaysia are similar with male
in term of Internet use. The male and female percentage of our respondent were
50.9 and 49.1, respectively.
||Respondents demographic profile
Since, all of the respondents have used Internet before. Among all respondents,
ymmg age from 21-25 were more followed by age 31-35 were dominating. On the
other hand, major respondents have done their bachelor (45.9%) andgraduate (49.9%).
Based on the occupation analysis of the respondents 35.9% were students followed
by business men (27.4%) and IT professional (22%) dominating second and third
position respectively. Moreover, most of our respondents are using Internet
more than three hours per day and all of the respondents were seen Internet
Advertisement on Internet. To more thoroughly test the hypothesis multiple regressions
was employed. The findings from this analysis are shown in Table
Results indicated that 58% of variance of brand building through Internet advertisement
was explained by this five independent variables with a significant F
value of 159.353 being significant at p<0.000 (Table 2
A Predictors: (Constant), purchasing capabilities, style oflntemet
Advertisement, customize, image, quick feedback
a) Predictors: (Constant), purchasing capabilities, style
of lA, customize, image, quick feedback, b) Dependent Variable: lA has capability
a) Dependent Variable: lA has capability build brand
Therefore, there is an evidence that these five attributes of internet advertisement
are significantly affected the process of building brand through Internet advertisement.
The hypotheses of this study are concerned with the individual effect of five
attributes of Internet advertisement on the process of brand building through
Internet advertisement. The test of these hypotheses leads to accomplish the
objective of this study. The strength of influence of each of the independent
variables would have on the process of brand building through Internet advertisement
being addressed and results were shown in the Table 4.
The results showed that customization facilities emerge as the important factor
affecting the process of brand building through Internet advertisement. A significant
positive effect of customization facility on brand building is seen from Table
4. The standardized coefficients is 0.244 and we also fmmd that t
calculated value is more than it's significance value at 5% level of significance.
This result supports our first hypothesis. No other media gives this customization
facility except the Internet. Even it helps the advertisers to provide contents
which attract the consumer to spend as much as possible on the site. Therefore,
it helps the consumers to learn and recall the brand which will help to build
brand among them. Based on this positive coefficient of the customization, this
study concludes that there is a significant positive effect of customization
on the process of brand building. regarding image showed that it has negative
impact on the process of brand building. Regression result shows a negative
effect of this variable on brand building and its standardized coefficients
is -0.160. It could be because the consumers are more concern on other facilities
such as information incentives, etc. rather than image. Especially the Malaysian
consumers are more concern on incentives. Purchasing facility through Internet
advertisement also formd the negative effect on the process of brand building
through Internet advertisement. Result described form Table 4
and indicated negative effect of this variable on brand building and its standardized
coefficient is -0.084. It is may be Malaysian consumers like store shopping
rather than online shopping. But they surf the Internet advertisement to collect
more information about the product and services before going to purchase. Thus
hypothesis H4 is not supporting in this respect.
According to our result for Hypothesis H5 , last and the most important
attribute for the brand building through Internet Advertisement is style of
Internet advertisement. The findings with respect to the anticipated effect
of style of Internet advertisement on brand building through Internet advertisement
was supported the estimated regression results was highly significant at p<0.000
level indicated that there is strong influence of style of Internet advertisement
on process of brand building where standardized coefficient is 0.489 (Table
4). This result also supported by the earlier literature of Block and Morwitz
(1999). Hence H5 is accepted.
CONCLUSIONS AND IMPLEMENTATIONS
There is indication that building brand is influenced by different styles of
internet advertisement. This might be due to the consumers being able to see
the Internet Advertisement in a different view. Through out this paper concluded
that Internet Advertisement can be an effective branding vehicle. Thus this
study examined factors that might impact on brand building. Those factors which
have been proposed for this study are included customization facility, different
style of Internet Advertisement, quick feedback. quality image and purchasing
facility. The key finding is that different style of Internet Advertisement
is a strong determinant of brand building. Stated that if a customer watch different
styles of Internet Advertisement more and more and get when ever they need,
it could help marketers to build brand. To build brand quick feedback and customization
facility is also need. Finally, for building brand it seems that quality image
and purchasing capabilities are not necessary. Hence, greater Internet Advertisement
effectiveness can be gained when it is more available by using different ways
to customers and provide above mention services such as customization facility,
quick feed back. Internet is a hybrid medium which can combine all three identified
commnnication strategies including mass commmrication, interpersonal commnnication
and machine nnderactivity commmrication. That is why new advertising strategies
are needed in this medium. The Internet is a two way interpersonal commnnication
flow. The key distinguishing features are the interpersonal feedback and interaction
process in real time, which traditional advertising nnable to provide. This
interaction process provides relevant customer information in order to serve
those more effectively in the future. User can also interact with the Internet
medium itself through machine nnderactivity. Compare to traditional media the
user is fully change of the information pull. So, marketers should more concern
on new strategies of Internet Advertisement.
The results of the present research suggests that brand can be built through Internet Advertisement among the consumers. According to results different styles of Internet Advertisement has more impact on brand building. Thus advertisers try to lannch their advertisement as much as possible in a different ways. Quick feedback and customization facility are also have impact on brand building through Internet Advertisement. Therefore, when advertisers place their advertising on the Internet should concern about these variables, because one of the effectiveness of Internet Advertisement is building brand which have an exciting future in front of us.
LIMITATIONS AND FUTURE RESEARCH
As with any experience, there are number of limitation presents in the current
study which was restricted this research to the selection of advertising on
the World Wide Web. Clearly, a variety of choice situation must be investigated
before generalize comments can be made to guide the development of Internet
based advertisement. Another limitation of the present study is the size and
composition of the group which participated in the study. Only Internet users
from the Malaysia were recruited for testing. So, generalization about the entire
population of Internet Advertisement uses is inappropriate. It would be value
to conduct similar research on other nationalities to obtain a clear picture
of online consumer attitude through Internet which is, essentially, a global
medium. In addition, limitation concerns the complex relationship between marketing
commmrication allocation and out comes, mainly other variables are related to
brand performance. And this study is restricted only one commnnity. Future research
is needed to extend the result of this study. Future multinational research
extensions might elucidate similarities and difference between nations population
including demographic significance. Likewise, future research is needed to determine
nnder what circumstances Internet Advertisement beliefs, attitudes and demographics
characteristics lead to online purchasing versus online information accumulation.