Consumer Behavioural Responses to Online Display Advertising in Ghana – The effects of Ad Characteristics, Consumer Attitude and Internet User Mode

Abstract

The unrivalled strength of the internet in terms of reach, richness of information, targeting and interactivity has made it a vital medium for advertising which has caused a remarkable growth in online/internet advertising. Over the past decade, online display advertising (ODA) has emerged as the fastest growing category of online advertising spurring several firms and businesses to invest heavily in display ads in order to connect with and keep their brands in front of consumers. While ODA holds various benefits for firms, both the literature and practice point to advertising clutter as a major challenge that has accompanied its growth. This has left advertisers struggling to stand out among the clutter to capture consumer attention and also, gain insights into what types of display advertising work best in the online environment. This thesis sets out to provide a theoretical and practical understanding of consumer behavioural responses to online display advertising by offering insights into how ODA characteristics, consumer-specific factors like attitude toward online advertising (ATOA) and user mode (internet usage motive) as well as how the nature of the advertised brand (product or service) enhance ad acceptance and minimise ad avoidance behaviours of consumers in an emerging market setting – Ghana. The study draws on the stimulus organism response (SOR) model and the reversal theory to propose a conceptual framework to empirically examine and explain the interrelationships among these variables. Adopting a positivist paradigmatic stance, the thesis employed a quantitative cross-sectional survey to collect data from 592 internet users in Ghana. Data gathered was analysed using Structural Equation Modelling (SEM) as well as ANOVA and Binary Logistic Regression. The study finds that, interactivity, informativeness and personalisation were the relevant ODA characteristics that serve direct stimuli functions in eliciting approach behaviours (ad acceptance). In addition, attitude toward online advertising (ATOA) emerged as a significant mediator (facilitator) of the positive relationship and the negative relationship between these ODA characteristics and ad acceptance as well as ad avoidance respectively. Also, user mode significantly moderated the relationship between personalisation and ad acceptance as well as informativeness and ATOA, and there were differences in behavioural responses of consumers based on the nature of the advertised brand such that, ad avoidance was higher for service-featured ODAs and ad acceptance was higher for product-featured ODAs. These findings bring to the fore knowledge that, reliance on ODA characteristics although may be quite adequate in eliciting positive behavioural responses, may not be sufficient in lessening avoidance behaviours toward display ads; rather how these ODA stimuli generate positive consumer ATOA is more crucial. Findings also point to understanding consumers’ motive for internet usage and the nature of the brands firms seek to promote as vital issues for advertisers and publishers if the appropriate ad features are to be selected in designing display ads that will suit the brands as well as appeal to the various user groups in order to generate the required attitude and responses. Further practical and theoretical implications of the study are discussed in the thesis.