CUSTOMER PERCEPTION TOWARDS SOCIAL MEDIA ADVERTISING
1. 1
UNIVERSITY OF PETROLEUM & ENERGY
STUDIES
A Major Research Project on
“CUSTOMER PERCEPTION TOWARDS SOCIAL MEDIA
ADVERTISING”
Submitted in Partial Fulfilment of the Requirements Of
Bachelors of Business Administration
Of University of Petroleum & Energy Studies
2015-2018
Guided By: Submitted By:
Ms. RajeshwariDeb SUYASH JAIN
KRITIKA NAVETIA
BBA-RETAILMANAGMENT
(2015-2018)
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DECLARATION
We hereby declare that the project titled “CUSTOMER PERCEPTION
TOWARDS SOCIAL MEDIA ADVERTISING” is a genuine work done by
Suyash Jain & Kritika Navetia and the information collected is authentic to the best
of our knowledge. We take full responsibility for the originality of our work and
declare that it is not pirated in any manner which is deemed illegal by law.
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ACKNOWLEDGEMENT
The success and final outcome of this project required a lot of guidance and
assistance from many people and we are extremely fortunate to have got this along
the completion of our project report. Whatever we have done is only due to such
guidance and assistance and we would not forget to thank them.
First of all, we would like to thank almighty GOD for the blessings, wisdom and
perseverance that he has been bestowed upon us.
We submit our highest gratitude towards our project mentor, Ms. RAJESHWARI
DEB, for giving us this opportunity to do this research under her guidance and for
her unforgettable super vision, for providing us useful resources and valuable
suggestions, wherever we needed. She was the one who took keen interest on our
project work and guided us all along till the completion of our project work by
providing all the necessary information for developing a good system.
We would also like to thank our course coordinator, Dr. Yatish Joshi for his
constant support and guidance.
We are obliged to staff members and students of University of Petroleum & Energy
Studies, for the valuable information provided by them in their respective fields. We
are grateful for their cooperation during the period of our project.
Lastly, I would like to thank our family members and friends for the support,
encouragement, best wishes and love given by them without which the completion
the completion of this research was not possible.
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TABLE OF CONTENT
CHAPTER NO. PARTICULARS PAGE NO.
1 Introduction 7
2 Literature review 10
3 Objectives 14
4 Research Methodology 16
5 Results and
Interpretation
20
6 Conclusion 29
7 Bibliography 31
8 Questionnaire 33
7. 7
INTRODUCTION
Social Media is a term that is used quite alien these days. It is the new in thing and one would
imagine that everyone knows or understands what social media is. It is a fact that ninety percent of
all online users use social media in some way or the other. It is also a fact that most of these people
will not be able to name more than a handful of social media platforms besides the ones that they
are using, It may have been due to the pace of development in the social media arena or just plain
lack of interest in the developments that makes it seem like social media jumped out of nowhere
and took people by surprise.
The emergence of social media began in the early days of Internet when people started sharing
information and communicating with each other. It was just the earlier platforms were more
“technology” intensive and required some expertise to use and hence the number of people using
these platforms was limited. Over a period of time as the technology matured. Platforms were
developed where regular users, without any technological background, could also use the services.
This was a turning point in the history of Internet. Making the Internet technology all inclusive,
where people were no longer silent spectators to the content being dished out to them. Now they
could create their own content, share it with others. Respond to people, and collaborate with them
and more. This user interaction is what gave impetus to the development of social media, as we
know it today.
What is Social Media?
Social Media has become an inevitable part of our daily life, and like it or not, it’s here to stay. It is
the talk of the town these days, being discussed extensively in traditional media and a rage among
the youth Businesses that are still not using the social media are scrambling to get tin-board the
bandwagon now as they are becoming aware of the enormous power and potential of this medium.
The term Social Media needs no explanation, as I am quite sure that everyone has heard and knows
of it by now. But for those who don’t — quite simply, “social media is the media that allows one to
be social, or get social online by sharing content. News, photos etc with the people.”
What is Social Media Advertising?
Social Media Advertising is a particular segment of marketing that utilises internet’s social
platforms to deliver commercial messages to potential consumers.
Social Media advertising, also known as online advertisement, internet marketing, online marketing
or E-marketing, is the marketing and promotion of products or services over the Internet. Examples
of online advertising include contextual ads on search engine results pages, banner ads, blogs, rich
media ads, social network advertising, interstitial ads, online classified advertising, advertising
networks, dynamic banner ads, and e-mail marketing, including e mail spam many of these types of
ads are delivered by an ad server.
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Social Media Marketing and Social Media Advertising
Social Media Marketing is a collection of methods and operations for generating commercial
publicity through social media websites and online communities. Social Media Advertising is
planning and executing advertising campaigns on those platforms.
The reasoning behind this action is Simple: The advertisers have to go where their clients are
hangout. And today their client’s hang out on Social Media websites.
The hard part is to execute and manage the form of advertising or communication on these sacral
platforms. If you go in With a normal hard sell ad message you would use on traditional media,
such as magazines, radio and TV, you are almost certain to crash and burn quickly. Direct
commercial messages are quickly considered as spam and you will find yourself black listed in no
time.
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LITERATURE REVIEW
Choi, et. al. (2002) studied - On consumers perceptions of ads entertainment, irritation, in
formativeness, credibility, and demographic. Researchers believe that interactivity is also a factor
that contributes to consumers perceptions. By understanding consumer’s attitude towards
advertising, designers and marketers can better strategize their advertising designs. A better
understanding of interactivity can also help to improve the effectiveness of interactive media such
as the Internet. A methodology for studying the factors that contributes to consumers perceptions of
ads is proposed and implications for internet-based advertising and e-commerce are discussed.
In this research we take a consumers perspective and examine consumers perceptions of different
types of ads. Their aim is to understand the perceived differences between the internet based
advertising and traditional advertising for both brand budding and directional purposes.
Ho, el. At. (2004) studied - The present research investigates consumer attitudes toward mobile
advertising and the relationship between attitude and behaviour. An instrument for measuring
attitudes toward mobile advertising is developed. The results of a survey indicate that (l) consumers
generally have negative attitudes toward mobile advertising unless they have specifically consented
to it, and
(2) There is a direct relationship between consumer attitudes and consumer behaviour. Thus it is not
a good idea to send SMS advertisements to potential customers without prior permission as the
empirical data show, the respondents held negative attitudes about receiving mobile ads. This may
have been because they found mobile adds irritating, given the personal, intimate nature of mobile
phones. Their attitudes were favourable ii' advertisements were sent with permission. This implies
that permission-based advertising may become a major mechanism in the mobile environment in
the future. "
Boyd el At. (2008: 210-230) have summarized recent research and social network history. The
authors, Berkeley and Michigan State professors, consider social networks as increasingly attractive
for researchers, fascinated for their usefulness, audience Size and market research potential. They
define social networks are web-based services that allow users to build a public or semi-public
within a system, articulate a user list with shared relationships; and observe the list of relationships
of those persons with other people within the system" (Boyd and Ellison, 2008: 211) Boyd and
Ellison explain that Six Degrees (1997) was chronologically the first social network but
disappeared in 2000. The most important current social networks were established after 2002:
Fotolog (2002). LinkedIn (2003), MySpace (2003), Last.FM (2003), Hi5 (2003). Orkut (2004),
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Flickr (2004). Facebook (2004), YouTube (2005), Bebo (2005). Ning (2005), Twitter (2006). From
2003 on metal networks reach the mainstream, and Stan producing audience figures we could
consider massive. Their audience growth has been explosive. In April 2009. Facebook had 200
million men worldwide: in March 20l0 it had reached 400 million By November 20m, Facet-008's
estimated audience is more than 547 million users Only 26% of the users are in the United States:
we are facing a genuinely global phenomenon. Twitter shows more modest audience figures (19
million in March 2009. 75 million in March 20m), and more than 44% of user are in the United
States. Nevertheless, the figures. Speak by them and might well give Facebook and Twitter a place
in the history of communications.
Ul Haq (2009) studied - The topic of advertising via c-mails is of major interest. It addresses
consumers with individualized advertising messages via e-mails. The analysis is based on a
consumer survey.
For this purpose, a quota sample of 800 internet users in India has been interviewed. The results
indicate that the content and the frequency of advertising message have the largest impact on
attitude toward advertising ‘via e-mails. By understanding consumers, attitude toward advertising,
designers and marketers can better strategize their advertising designs. A methodology for studying
the factors that contribute to consumers‘perceptions of ads is proposed, and implications for
internet-based advertising are discussed.
Lertdejdecha, et. a1. (2009) studied - demographics, relevance to advertisement, brand familiarity,
and attitude toward SMS and MMS have significant effects on the consumers’ response to the
business SMS/MMS. The questionnaires were used to collect the data from consumers in different
demographic groups. Multiple regressions (SPSS 16.0) were used to attitude toward SMS and
MMS have significant effects on the consumers’ response to the ads. Based on the statistical
analysis, we provide general guideline for an effective SMS/MMS marketing.
Bond, et. al. (2010) Studied - Social media brings With It powerful opportunities for brands to
engage with consumers, one method being through interactive advertising. To broaden our
understanding and assist in managing marketing communications effectively, this exploratory
research investigates the role of social media within the broader advertising and communications
mix. Qualitative focus groups were conducted with consumers to assess perceptions and attitudes
towards social media advertising, and preferences for brand engagement through this channel.
Consumers manifest desires for social interaction, entertainment, convenience, and information,
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which can be brought to action by marketers through providing innovative and engaging platforms
for participation, socialisation and community building, as well as providing benefits to aid routine
and daily structure. They conducted a series of three focus groups with consumers. Convenience
sampling was used to recruit 21 undergraduate and postgraduate University students. Findings
suggest that use of social media advertising in a multichannel communications approach could have
powerful impact on brand loyalty and engagement.
SANDBERG, et. al. (2011) studied - As today is an era of internet and marketers' increased
investments in internet advertising. And our researchers’ studies is based on a recent explorative
study of 15 year old Swedish teenagers, aim to discuss their exposure- potential, actual and
perceived-to online advertising with a particular focus on food advertisements. They used different
methods for their research like Research Questions. Retrospective interviews have also been carried
through with the intention of getting a deeper understanding of the teenagers" awareness of online
advertising. The results suggest that teenagers are exposed to l0% of all the potential
advertisements, but they are mainly unaware of this actual exposure. Food advertisements had the
highest impact in this study. Our research also indicates substantial gender differences in actual
exposure to advertising. Boys are exposed between 30% and 60% more to advertisements in some
categories (gambling, ad links. lifestyle. and recreation) than girls. "
Wang, Qingya (2011) studied - As social media sites continue to grow in popularity, it is our
premise that technology is a vital part in today's student equation. The descriptive, exploratory
research study drew a random sample (N= 48) of males (n=26) and females (n=22) who were
administered a student perception questionnaire on how social media affects college students.
Thirty-five percent of the participants were undergraduates and 65% were graduate students,
studying at Johnson & Wales University. Thirty-one percent of participants have full-time jobs,
30% have part time jobs and 39% do not have jobs. The results of the survey questionnaire indicate
that 45% of the sample admitted that they spent 6- 8 hours per day checking social media sites,
while 23% spent more than 8 hours; 20% spent 2-4 hours and only 12% spent less than 2 hours on
this task. Results indicate while most college students use social media and spend many hours
checking Social Media sites, there was a negative aspect to college students’ use of social media.
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OBJECTIVES
The main objective of this study is as follows:
• To Study the time devoted by the respondents on the social networking sites.
• To Study the influence of age and education of a consumer in selection the advertisement on
social media.
• To find out the overall effect of Social media advertising in forming purchase decisions.
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RESEARCH METHODOLOGY
Collection of Data
Data can be collected from different sources and for different reasons. Depend on the
content of information, data can be used for various purposes, therefore it is important to
know where to get the data and find the most valid and suitable data for the specific
research purposes.
ResearchDesign
The research design adopted for this study is exploratory. Reason for selecting this design
is the exploration of the relevant field.
On the basis of above the data collection methods chosen are:
- Questionnaire is the research instrument.
What is convenience sampling?
Convenience sampling is a non-probability sampling technique where subjects are
selected because of their convenient accessibility and proximity to the researcher.
A statistical method of drawing representative data by selecting people because of the ease
of their volunteering or selecting units because of their availability or easy access.
The advantages of this type of sampling are the availability and the quickness with which
data can be gathered. The disadvantages are the risk that the sample might not
represent the population as a whole, and it might be biased by volunteers. For example,
a study to determine the average age and sex of gamblers at a casino that is conducted for
three hours on a weekday afternoon might be overrepresented by elderly people who
have retired and underrepresented by people of working age.
Convenience sampling is a sample taken from a group you have easy access to. The idea is
that anything learned from this study will be applicable to the larger population. By using a
large, convenient size, you are able to more confidently say the sample represents the
population.
The sampling technique chosen is convenience sampling for collectionof Primary
Data.
The above-mentioned objective was criticallyappraised by using primary data.
Primary Data
The research will be done to collect first-hand information from the various sources
available such as college student, families, executives, businessman, various organizations
and communities through questionnaire etc.
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Selection of Study Area
The study was carried out among the consumers of Dehradunregion.
Research Design
In this study, quantitative primary data is obtained through consumers who regularly
check their Facebook, Google Docs, Whatsapp, and who are active members of the other
online communities with varying age groups, educational qualifications.
What is Chi- Square test?
A chi-squared test, also referred to as test , is any statistical hypothesis test in which
the sampling distribution of the test statistic is a chi-square distribution when the null hypothesis is
true. Chi-squared tests are often constructed from a sum of squared errors, or through the sample
variance. Test statistics that follow a chi-squared distribution arise from an assumption of
independent normally distributed data, which is valid in many cases due to the central limit
theorem. A chi-squared test can then be used to reject the hypothesis that the data are independent.
Also considered a chi-square test is a test in which this is asymptotically true, meaning that the
sampling distribution (if the null hypothesis is true) can be made to approximate a chi-square
distribution as closely as desired by making the sample size large enough. The chi-squared test is
used to determine whether there is a significant difference between the expected frequencies and
the observed frequencies in one or more categories. Does the number of individuals or objects that
fall in each category differ significantly from the number you would expect? Is this difference
between the expected and observed due to sampling variation, or is it a real difference?
What is One Way Anova Test?
In statistics, one-way analysis of variance is a technique used to compare means of three
or more samples (using the F distribution). This technique can be used only for numerical
data.
The ANOVA tests the null hypothesis that samples in two or more groups are drawn from
populations with the same mean values. To do this, two estimates are made of the
population variance. These estimates rely on various assumptions (see below). The
ANOVA produces an F-statistic, the ratio of the variance calculated among the means to the
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variance within the samples. If the group means are drawn from populations with the same
mean values, the variance between the group means should be lower than the variance of
the samples, following the central limit theorem. A higher ratio therefore implies that the
samples were drawn from populations with different mean values.
Typically, however, the one-way ANOVA is used to test for differences among at least
three groups, since the two-group case can be covered by a t-test (Gosset, 1908). When
there are only two means to compare, the t-test and the F-test are equivalent; the relation
between ANOVA and t is given by F = t2. An extension of one-way ANOVA is two-way
analysis of variance that examines the influence of two different categorical independent
variables on one dependent variable.
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gender
Frequency Percent Valid Percent Cumulative
Percent
Valid
male 64 59.3 59.3 59.3
female 44 40.7 40.7 100.0
Total 108 100.0 100.0
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Age Group
Frequency Percent Valid Percent Cumulative
Percent
Valid
20-30 yrs 84 77.8 77.8 77.8
35-50 yrs 21 19.4 19.4 97.2
Above 50 3 2.8 2.8 100.0
Total 108 100.0 100.0
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Educational Qualification
Frequency Percent Valid Percent Cumulative
Percent
Valid
Matriculate 6 5.6 5.6 5.6
Graduate 47 43.5 43.5 49.1
Post Graduate 49 45.4 45.4 94.4
And Others 6 5.6 5.6 100.0
Total 108 100.0 100.0
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How much time do you commit to social media ?
Frequency Percent Valid Percent Cumulative
Percent
Valid
1-2 Hours Daily 33 30.6 30.6 30.6
Several Times in a Day 57 52.8 52.8 83.3
2-4 Time in a Week 13 12.0 12.0 95.4
Once in a week 5 4.6 4.6 100.0
Total 108 100.0 100.0
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CHI SQUARE TEST
Age Group
Observed N Expected N Residual
20-30 yrs 84 36.0 48.0
35-50 yrs 21 36.0 -15.0
Above 50 3 36.0 -33.0
Total 108
Educational Qualification
Observed N Expected N Residual
Matriculate 6 34.0 -28.0
Graduate 47 34.0 13.0
Post Graduate 49 34.0 15.0
Total 102
Have you ever purchased a product or service based
on an advertisement on a social network?
Observed N Expected N Residual
Yes 51 54.0 -3.0
No 57 54.0 3.0
Total 108
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Test Statistics
Age Group Educational
Qualification
Have you ever
purchased a
product or service
based on an
advertisement on
a social network?
Chi-Square 100.500a
34.647b
.333c
Df 2 2 1
Asymp. Sig. .000 .000 .564
a. 0 cells (.0%) have expected frequencies less than 5. Theminimum
expected cell frequency is 36.0.
b. 0 cells (.0%) have expected frequencies less than 5. The minimum
expected cell frequency is 34.0.
c. 0 cells (.0%) have expected frequencies less than 5. Theminimum
expected cell frequency is 54.0.
Framing the Null Hypothesis
Ho1- Age of a person does not affect significantly in forming customer perception towards
social media advertising.
As significant value of Ho1 is .000 < .05 hence null hypotheses is rejectedwhich states that,
age group is significantly affecting.
Ho2- Qualification of a person does not affect significantly in forming customer perception
towards social media advertising.
As significant value of Ho2 is .000 < .05 hence null hypotheses is rejected which state that,
educational qualification is significantly affecting.
Ho3- Purchase of a product though social media advertising does not affects significantly in
forming customer perception.
As significant value of Ho3 is .564 > .05 hence null hypotheses is not rejected which states
that, Purchase of a product though social media advertising is significantly not affecting.
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One way ANAOVA
ANOVA
Sum of Squares df Mean Square F Sig.
Do you visit the associated
web site of theadvertisement?
Between Groups 9.086 1 9.086 8.781 .004
Within Groups 109.682 106 1.035
Total 118.769 107
Does social media
advertisement help you in
taking purchase decision?
Between Groups 22.656 1 22.656 19.489 .000
Within Groups 123.224 106 1.162
Total 145.880 107
Does social media advertising
influence your shopping
trend?
Between Groups 14.208 1 14.208 11.697 .001
Within Groups 128.755 106 1.215
Total 142.963 107
Do you think social media
advertisement will lead you to
purchase useful product.
Between Groups 11.091 1 11.091 7.769 .006
Within Groups 151.317 106 1.428
Total 162.407 107
Are you attracted towards a
brand by clicking on that
advertisement.
Between Groups 8.359 1 8.359 5.693 .019
Within Groups 155.641 106 1.468
Total 164.000 107
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Null Hypothesis and Interpretation
Ho1: Visit to the associated web site of the advertisement does not affect significantly
on purchase of product/ service based on social media advertising.
As significant value of Ho1 is .004 < .05 hence null hypotheses is rejectedwhich
states, that visit to the associated web site of the advertisement affect significantly on
purchase of product/ service based on social media advertising.
Ho2: Taking purchase decision through advertisement does not affect significantly on
purchase of product/ service based on social media advertising.
As significant value of Ho2 is .000 < .05 hence null hypotheses is rejected which
states that, taking purchase decision through advertisement affect significantly on
purchase of product/ service based on social media advertising.
Ho3: Purchase of product/ service based on social media advertising does not influence
your shopping trend.
As significant value of Ho3 is .001 < .05 hence null hypotheses is rejectedwhich states
that, purchase of product/ service based on social media advertising influence your
shopping trend.
Ho4: Purchase of product/ service based on social media advertising does not lead you
to purchase useful product.
As significant value of Ho4 .006 < .05 hence null hypotheses is rejected which states
that, purchase of product/ service based on social media advertising leads you to
purchase useful product.
Ho5: Purchase of product/ service based on social media advertising does not attract
towards a brand by clicking on that advertisement.
As significant value of Ho5 .019 < .05 hence null hypotheses is rejected which states
that, purchase of product/ service based on social media advertising attract towards a
brand by clicking on that advertisement.
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CONCLUSION
There is no escaping posibble from social media these days neither for individuals nor for
businesses . Any organisation excluding its self from any of the internet of things, would be
loosing an opportunity to exploit the most from the market and not competing with a
competitive edge in the dynamic market. It is impossible to separate social media from the
online world. The purpose of doing this Major Research Project has been fruitful for the
organisation, since now through practical survey none of the organization can escape from
this online involvement of business in today’s scenario. The following research
methodology provides a depth insight of customer perception towards Social Media
Advertising and tne current need of the organisation to launch its self online with the off-
line stores.
From this research we found out that today the major percentage of customer is connected
to social media and they have huge impact of it. There purchase decision, shopping trend
and brand trust depends on the information they get from social media advertising. Today
both offline and online business needs to be implemented hand in hand to achieve greater
market share in less time.
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BLIOGRAPHY
Gidlof, K. Heolmberg, N., and Sandberg, H , (2011): Children’s Exposure to and
Perceptions of Online Advertising, International Journal of Communication 5 (2011), 21-
50
Bond, C Ferraro, C , Luxton, S. and Sands. S (2010): Social Media Advertising: An
investigation of Consume Perception, Attitudes, and Preferences for Engagement,
Australian and New Zealand Marketing Academy. 1-9.
Rittippant, N, Lertdejdecha, N. , Limpiti. P. and Wittliayawarakul, J (2009) : Consumer
Perceptionof the Effectiveness of Short Message Service (SMS) and Multimedia Message
Service (MMS) as Marketing Tools, World Academy of Science, Engineering and
Technology 53 .
Haq, Z. (2009), E-mail advertising: A study of consumer attitude toward e mail advertising
among Indian users, Journal of Retail & Leisure Property, Vol 8 207-223.
Ho,S . Liang , TP , and Tsang , M.M, (2014) : Consumer Attitudes towards mobile
Advertising : An Empirical Study, International Journal of Electric Commerce Spring, Vol.
8, no. 3
Choi, R , D. Erdita , M. , Wang .C. , and Zhang , P. , (2002) : Understanding Consumers
Attitude Toward Advertising, Eighth Americas Conference on Information Systems 1143.
Wang, Qingya; Chen, Wei; and Liang, Yu : The Effects of Social Media on College
Students (2011) .MBA Student Scholarship Paper 5.
32. 32
BOYD, Danah M. and ELLISON, Nicole B; Social Network Sites: Definition, History and
Scholarship, Journal of C0mpuler~Mediated Communication, 13, 2008, pp. 210-230.
Ms. Sisira Nett : Social Media And Its Role In Marketing, Vol. 1 Issue 2 July 2011
CHAPTER 8
QUESTIONNAIRE
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CUSTOMER PERCEPTION TOWARDS SOCIAL MEDIA
ADVERTISING
* Required
SECTION-A
1. Name (optional)
2. Gender *
Mark only one oval.
Male
34. 34
Female
3. Age Group *
Mark only one oval.
20-35 yrs
35-50 yrs
Above 50
4. Educational Qualification *
Mark only one oval.
Matriculate
Graduate
Post Graduate
SECTION-B
5. How much time do you commit to social media ? *
Mark only one oval.
1-2 Hours Daily
Several Times in a Day
35. 35
2-4 Time in a Week
Once in a week
6. Do you trust online advertisement ? *
Mark only one oval.
Yes
No
7. How many ads do you click on social media. *
Mark only one oval.
0
1-3
4-5
More than 5
8. Have you ever purchased a product or service based on an advertisement on a social
network? *
Mark only one oval.
Yes
No
9. Are you a member of a fan page for a brand or product on facebook ? *
36. 36
Mark only one oval.
Yes
No
Section-C
10.Do you visit the associated web site of the advertisement. *
Mark only one oval.
1 2 3 4 5
Strongly
Disagree Strongly Agree
11.Does social media advertisement help you in taking purchase decision ? *
Mark only one oval.
1 2 3 4 5
Strongly
Disagree Strongly Agree
12.Does social media advertising influence your shopping trend ? *
Mark only one oval.
1 2 3 4 5
Strongly
Disagree Strongly Agree
13.Do you think social media advertisement will lead you to purchase useful product. *
Mark only one oval.
1 2 3 4 5
Strongly
Disagree Strongly Agree
14.Are you attracted towards a brand by clicking on that advertisement. *
Mark only one oval.