Internet Advertising: Comparison of Nigeria and Hungary
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Despite the marginal difference between Nigeria and Hungary, the internet develops a relationship that can be exploited. Internet users of both countries are dominated by youths, and thus are the most accessible to internet ads.
Internet advertising also termed online advertising or internet marketing or web advertising is simply the making available of advertising messages and marketing communication through the internet via the web. Internet advertising which was introduced several years after traditional advertising (banners) in the 1990s now suppresses all other advertising medias and hence constitutes a significant channel for the majority of firms. These firms range from small to big sizes, national and multinational, service providing to manufacturing enterprises (Restaurants to ship manufacturing agencies). Internet advertising now shares a position in the context of marketing communication strategy planning and implementation.
It is vital for organizations considering internet marketing strategy to effectively associate each component reason being that, with the global market place, it is important for entrepreneurs and marketers to be critical of what is most beneficial and meets their needs to the internet marketing strategy intended for use. Byusing the standard advertising program process as a base,it is simple to outline the characteristics of the Internet which abusiness must take into consideration when planning a Web advertisingcampaign (Kotler, 1997).
Without trying to dispute earlier findings in this thesis, the work presented attempts in it own way to highlight some comparative ideas of internet advertising between Nigeria and Hungary thus stating the aims of this paper based on internet user's social context on the effectiveness of internet advertisement. By using primary material from books and other sources, the idea of internet advertisement is identified. And by considering other publication, some conclusions are generated for the better understanding of this piece.
By examining the topic of this thesis, its extensive nature is revealed. Three fields of study are mentioned and are dealt with accordingly -Marketing, information technology, and advertisement (internet advertising). As broad as each of these could be, the presentation is quite short and straight to the most essential. The study depicts the differences in the attitude of internet users to ads. The analysis obtained from input sources reveal a significant relationship between the type of activities of users through which they come into contact with internet ads in each of the two countries (Nigeria and Hungary).
1.1 Background of Study
The growth in Internet Advertising has paved its way and settles comfortably in the global world of business due to internet innovations. Further more its effects, impact and usefulness can be observed social aspect of human activities thereby creating greater opportunities for a more developed and diversified recreation. The Internet or World Wide Web has quickly become the most effective way for businesses to advertise their products or services to expected consumers. Some Web sites such sell advertisement space for sponsoring and by so doing they profit highly from the increase of advertising on the Internet. The number of people with internet access and internet services is growing continuously at a geometric rate and with internet advertisement potential customers can view these advertisements thereby contributing to the maximum level of business profits.
Recent studies on internet advertising focus more on empirical works as well as theoretical structures there by investigating the role of some factors in the success of internet advertising, none the less it is necessary to present some significant measures employed in this thesis to quantify advertising effectiveness.
According to Pavlou and Steward (2000), advertisement has a direct effect to consumers and therefore considered as an independent variable while consumer response is the dependent variable. They further explain the nature of the highly interactive environments taking into account other factors such as online context in which advertisement takes place in order to render this study more insightful. Incorporated here are many aspects of internet advertisement context as types of internet activities and user's social context in the study of responses to internet advertisement.
Internet advertising is rapidly growing and advertisements have become more apparent in our Internet usage. When advertising on the Internet, both the businesses and the web sites (search engines) profits. Businesses profit from the use of internet advertising by minimizing cost compared to standard advertising which is a lot more expensive. Internet advertising raises awareness, conveys advertisers' messages and enhances brand perceptions and with greater advertisement exposure inflicts even greater impact.
Responds to this advertisement differs considerably by different individual in different Geographical locations and cultural background.
An AdHoc study conducted by Gemius in cooperation with Sanoma Budapest proves that most Internet users in Hungary have a positive attitude towards online advertising. Moreover it shows what their behavior is like in response to online advertising and the perceived image of the advertised companies. The respondents were also evaluating different formats of advertisements in the survey, indicating the ones that they know best and the favorite ones. The research was conducted on the Internet in the form of a pop-up survey (random sampling) on May 2006. 67% of the respondents declared that they accept online advertisements as the price for free access to web sites. (International Operations Department, Press release June 30, 2006)
Internet usage in Nigeria is an important issue with the average student using 10.5 hours per week and the total population averaging 3.5 hours per week. Internet usage in Nigeria has consistently grown to 11million internet users as of June 2009 according to the International Communication Union (ITU) report.
Various types of broadband bring the internet to our door steps such as Asymmetric Digital Subscriber Line (ASDL), Asymmetric Digital Subscriber Line (SDSL), cable broadband, wireless, satellite, Local Loop Unbundling (LLU) etc With the accession of the internet, came an easier method of communication, transmission of information to the public and hence the rise of the internet advertisement.
Advertising on the Internet can be viewed as a social contract between advertisers and Internet users. Every individual comes across advertising through multiple channels; either outdoor: through fliers, bill boards etc or indoor: through the internet, A reason why today's market is highly dominated by advertising.
Based on the fact that we live in a globalized world, advertising is recognized in every country in its own structure with respect to its culture, consumer demand or requirements.
1.2 Aims and objectives
This thesis outlines and compares how internet users in Nigeria and Hungary respond to internet advertisements with focus on the technical aspects, social networking and simple basic adverts in websites. In addition I am searching for various answers and perceptions of what people from these different countries think about these adverts and the effect it has on them in a cultural perspective considering the fact that both cultures are not only socially different but economical and educational as well.
In the first part of this study, I am researching how technical aspects, such as social networking and website adverts in Nigeria and Hungary. It is followed by an evaluation of how Nigerians and Hungarians respond to internet in the second part. The third part focuses on a research for: the changes the internet brings in Nigeria and Hungary for example is the internet improving industries such as the banking sector or being an important educational tool for students? Is it the centre of attention for businesses? Finally, the fourth part is the conclusion drawn based on the findings of the aforementioned research.
2 Literature review
Under the literature review, I will be considering a thorough review of the already existing literature on the subject of internet advertising which is highly important for the continual understanding of the sections in this thesis. Picking the pieces and fitting them together I will build a concrete piece on the above mentioned topic starting with defining the parts that make up our topic, considering the social and technical aspect of the internet, advertising and last but not the least marketing.
2.1 The internet
The birth of the internet did not come as a surprise, may be to the common man in the streets but definitely not for the scientist who had been expecting something new, fresh, cheap and friendlier. It emerged in the early 1960s as a way for the US department of defense to create a secure means of communication in case of uncertainties. It evolved from Advance Research Agency (ARPA) in 1969 to ARPANET for the civilian sector and MILNET (military network) “(Jeffrey F. Rayport et al. 2001)”.
In the 1980's ARPANET was renamed National science Foundation Network (NSFNET). The progress of this development proceeded in 1989 with the creation of a more efficient way of sharing information by defining the Hypermedia Protocol (HTTP- Hypertext Transfer Protocol) which is the standard addressing format URL (Uniform Resource Locator) and the programming language HTML (Hypertext Markup Language) which has become the basis of World Wide Web (WWW) which is universal and the most used part of the internet to access multimedia e.g. text documents, graphics, videos etc “(Jeffrey F. Rayport et al. 2001)”. In 1993, a team led by Marc Anderson developed a new piece of software called “Mosaic” as the first internet browser after which other browsers were introduced, like internet explorer by Microsoft which became the most prominent “(Jeffrey F. Rayport et al. 2001)”.
After these developments, today's internet has not only brought technology but also affects the way things are done world wide. It is continuously changing to the extent that it has taken almost all diversification and stems all changes in world business, revolutionarising the way business is done, the concepts between business and consumers.
2.2 Overview of the general background of advertising
Advertising is a collective term for public announcements designed to promote the sale of specific products or services. It is a form of mass selling, employed when the use of direct, person-to-person selling is impractical, impossible, or simply inefficient. Advertising techniques range in complexity from the publishing of simple notices in the classified-advertising columns of newspapers to integrated marketing communications, involving the concerted use of advertising in newspapers, magazines, television, and radio, and on the internet which is our main focus.
Advertising dates back to the Christian era. Advertisements transited from the outdoor signs as paintings on wall of buildings that were very sight captivating to company trade marks which were two or three dimensional picture or signs in the 16th centuries. Around the 1880s, there came Mail orders and pamphlets and in late19th century, many American firms began to market packaged goods under brandnames. Previously consumers had not been aware of or influenced by brand names.
The first product that had brand name was soap products. In the 1880's a fewbrands came out and they were Ivory, Pears, Sapolio, Colgate, Kirks AmericanFamily and Packer's. Not long after brands such as Royal baking powder, Quakeroats, Bakers chocolate, Hire's root beer, regal shoes, etc were nationally advertised.
2.2.1 Stages of advertisement
The major goal of advertising is to generate awareness of a business and its products. Once the business' reputation is established and its products are positioned within the market, the amount of resources used for advertising will decrease as the consumer develops a kind of loyalty to the product. Targeting the audience, product concept, communication media, and advertising message are the core elements of an advertising strategy, and are often referred to as the "creative mix." Again, what most advertisers stress from the beginning is clear planning and flexibility. And key to these aims is creativity, and the ability to adapt to new market trends.
Target consumer is a complex combination of persons. It includes the person who ultimately buys the product, as well as those who decide what product will be bought (but don't physically buy it), and those who influence product purchases, such as children, spouse, and friends. In order to identify the target consumer, the following should be considered; Demographics(Age, gender, job, income, ethnicity, and hobbies.), Behaviors (awareness of the business and its competition, the type of vendors and services the consumer uses, and the types of appeals that are likely to convince the consumer to give the advertiser's product or service a chance.), Needs and Desires (determine consumer needs in practical and self-image terms.)
The product concept grows out of the guidelines established in the "positioning statement." How the product is positioned within the market will dictate the kind of values the product represents, and thus how the target consumer will receive that product. Therefore, it is important to remember that no product is just itself, but, as Courtland L. Bovee and William F. Arens stated in Contemporary Advertising, a "bundle of values" that the consumer needs to be able to identify with. Whether couched in presentations that emphasize sex, humor, romance, science, masculinity, or femininity, the consumer must be able to believe in the product's representation.
The communication media is the means by which the advertising message is transmitted to the consumer. In addition to marketing objectives and budgetary restraints, the characteristics of the target consumer need to be considered as an advertiser decides what media to use. Advertisers can choose from the following media categories such as Print, Video, World Wide Web, Direct mail, outdoor advertising-Billboards, advertisements on public transportation (cabs, buses).
After deciding on the medium that is 1) financially in reach and 2) most likely to reach the target audience, an advertiser needs to schedule the broadcasting of that advertising. The media schedule, as defined by Hills, is "the combination of specific times (for example, by day, week, and month) when advertisements are inserted into media vehicles and delivered to target audiences."
An advertising message is guided by the "advertising or copy platform," which is a combination of the marketing objectives, copy, art, and production values. This combination is best realized after the target consumer has been analyzed, the product concept has been established, and the media and vehicles have been chosen. At this point, the advertising message can be directed at a very concrete audience to achieve very specific goals. Hiam and Schewe listed three major areas that an advertiser should consider when endeavoring to develop an effective "advertising platform": the unique features of the products, how consumers will evaluate the product, rank of competitors in the eyes of the consumer, their weaknesses in their positions and their strengths.
Copy: When composing advertising copy, it is crucial to remember that the primary aim is to communicate information about the business and its products and services. Many companies utilize a theme or a slogan as the center piece of such efforts, emphasizing major attributes of the business's products or services in the process. But as Hiam and Schewe caution, while "something must be used to animate the theme …care must be taken not to lose the underlying message in the pursuit of memorable advertising."
Art work and layout: Small business owners also need to consider the visual rhetoric of the advertisement, which simply means that the entire advertisement, including blank space, should have meaning and logic. Most industry experts recommend that advertisers use short paragraphs, lists, and catchy illustrations and graphics to break up and supplement the text and make the document both visually inviting and easy to understand. Remember, an advertisement has to capture the reader's attention quickly.
2.2.2 Internet advertising
Internet advertising is a message delivered to people by placing adverts on Search engines, Social networking websites such as Facebook, e-mails, pop ups etc. These adverts can be seen by the whole world and are not limited to a geographical region. In this same respect, adverts are meant for the mass and there are many users of internet worldwide so the message gets spread widely and quickly thereby reaching people of different cultures and beliefs. Some of the people might be uninterested because the signs or symbols used violate their cultures. E-mails are also sent to people who are either not interested or are not located geographically in areas accessible to the products.
2.2.3 Advantages and disadvantages of internet ads
The most common item that determines advantages of a product or service lies in its cost. Internet advertising packages could be available at very low costs (10 dollars per monthly subscription). Trouble free relativity could also be a great advantage internet advertisement has over other media ads, to the user and the producer, all which is needed is first of all a PC then internet service, through which you can either design a site or survey advert sites. It is could also be noticed that with internet advertisement, when advertisers get to know the age group, taste, and sex of consumers who most frequently survey their ads, site owners could easily and quickly update their pages to current consumer needs compared to other media ads which could do so only periodically. Market presentation is also easy with internet ad, product or service is designed for the younger generation or the corporate world are easily viewed by this class of persons as they make the greater proportion of internet users and the greatest proportion of consumers.
Though a multiple advantages make internet advertisement favorable, some disadvantages could still be noticed. Internet advertisement is made better with professional help and these additional costs make some ads more expensive than others. It is disadvantageous to use only the internet as advertising medium because there are a hand full of persons who can not gain access to this new technology or they just don't have the trust in these internet ads.
2.3 Broad band connections in Hungary and Nigeria
Broadband connection is a new concept used, in place of dial up connections. Broadband internet connection is faster and offers a host of advantages in them. The speed is usually faster than a dial up connection, which facilitates many operations at a time in for example watching many online live shows and movie downloads etc.
There are various types of broadband offered nowadays. Asymmetric Digital Subscriber Line (ASDL), Asymmetric Digital Subscriber Line (SDSL), cable, wireless, satellite, Local Loop Unbundling (LLU) etc are some common types.
Hungary's internet providers provide their services using a number of broadband which include DSL, Cable broadband, ADSL2+ and Wireless broadband. The broad band is distributed through multiple distribution channels namely; UPC, T-Kabel, Fibernet and DIGI.
Hungary's broadband market experiences strong growth, Cable broadband is widely available due to the network penetration of the country's cable operators. The broadband market as a whole experiences a significant growth as the regulators have reduced access tariffs and have introduced a wholesale system based on retail tariffs to ensure suitable margin for alternative operators. Digital cable services have been launched by a handful of the smaller cable operators and the country's Direct To Home (DTH) market is showing fresh signs of life. The Internet access sector in Hungary constitutes the total revenues generated by Internet Service Providers (ISPs) from the provision of narrowband and broadband Internet connections through both consumer and corporate channels.
Similar to Hungary, Nigeria uses ADSL, cable and wireless broadband services which are rapidly replacing the formal dial up access method. Market penetration is still low leaving room for necessary growth.
Nigerians connect to the internet in many ways through Very Small Aperture Terminal (VSAT) links, Wireless microwave links internet access and Digital Subscriber Line (DSL) access. Many of these sessions are through internet cafes as very few Nigerians have their own personal computers.
Mobile operators are strongly gaining growth by providing Nigerians to access the internet through mobile devices. Such service providers are; MTN, Celtel, and Glo Mobile providing internet, GPRS, EDGE, UMTS and HSDPA all across the nation.
2.4 Technical aspects of internet usage in Nigeria and Hungary
Internet usage is regarded with direct reflection of the total country's population. This would be termed the percentage rate of penetration which relates to the number of internet users per square feet of the population.
Public cyber cafe of various shades and sizes are the most common method of access individuals have to the internet. In addition to that, there are internet service providers delivering direct access to individuals and businesses on a variety of platforms.
There is widespread availability in urban centres, and fairly good availability in smaller towns most recently, mobile phone lines such as MTN, Celtel, and Glo Mobile provide internet, GPRS, EDGE, UMTS and HSDPA all across the nation, it is almost amazing to find internet access in some of the most remote locations in the country.
According to an issue in trade invest Nigeria onBroadband in Nigeria: The revolution is coming by Jaco Maritz's; posted on Sunday, March 16th 2008, Nigerians connect to the internet in many ways but 53% of connections are made through Very Small Aperture Terminal (VSAT) links. Wireless microwave links account for 19% of internet access and Digital Subscriber Line (DSL) access are estimated to be only 14%. Many of these sessions are through internet cafes as very few Nigerians have their own personal computers. National Bureau of Statistics figures show that in 2006 less than 10% of internet users had access from the workplace and less than 4% from the home. Only 1.3% of the population own personal computers.
Nigerian internet users are aged between 11 and 40 with a greater part of this population being students, business persons, and to a lower extent, the public functions giving a 7.4 % total internet population penetration. (See appendix Diagram N2)
In Hungary, other than the traditional activities of the internet (emailing, browsing, reading journals online), a greater extent of Internet users use it for the leisure function of the web, job search and application, internet purchases, watching or listening to news, entertainment purposes as well. Users in Hungary vary between the ages of 10 and 69 summing a total of 34.9% internet rate of penetration. 55% of these users use the online voice transmission in communication and chatting, at least 33 percent have tried to watch television via the internet. The number of people using internet at home increases considerably, from 23% in 2007 to 28% in 2008 and 41% in 2009. Having access to the internet does not necessarily imply using it as of the 46% of home owners 10 % of them do not use it at all. (See appendix Diagram H3)
2.5 Marketing in Hungary and Nigeria
Advertising is in respect to marketing, that is; people advertise to make known their products and hence gain marketing ground; therefore a vivid understanding of marketing is necessary.
Customer satisfaction, as a construct, has been fundamental to marketing for over three decades and every advertisement tries to comply with this logic. As far back as 1960s, satisfying the needs and desires of the consumer stands as the definition of marketing “Keith 1960”. Interest in customer satisfaction increased through out the years till date.
Several studies have shown that it costs about five times to gain a new customer as it does to keep an existing customer and these results into more interest in customer relationships (Naumann, 1995). Companies now have big investment in database marketing, relationship management and customer planning to move closer to their customers “Hill and Alexander (2000)”.
These definitions demonstrate that increasing customer satisfaction affects companies directly, increases their market shares which lead to improved profits, positive recommendation, lower marketing expenditures and greatly impacts company corporate image and hence enhances their survival.
The relevance of these definitions to this study indicates that customers access the internet services based on experience of use and rating is done in accordance with the internet services attributes. In this study, customer satisfaction in the Nigerian and Hungarian markets will be evaluated based on customer's usage and their reaction to internet advertisements, experience of network quality, billing, validity period and customer care support.
By Marketing Penetration we imply where a company expands market share in an existing market byusing existing products which could be done in 4 main ways.
1. Persuade existing customers to buy more of the same product, thiscan be done buy promotions such as 3 for 2. This make the customerfeel as if they are getting more for their money, and hopefullycould stop them from switching to alternative brands.
2. Attracting new customers to products. This can be done buyimproving the image of the product, new packaging, reducing price,or buy giving a % extra free.
3. Poaching customers from competitors. Buy reducing price, givingfreebies, and a % extra free with the product. Doing this couldincrease your market share and reduce your competitors.
4. Withdrawing other products. Buy withdrawing less profitableproducts, similar products can become more profitable, and sellmore.
Marketing through internet advertising targets all already existing consumers and expected consumers both to cultivate lasting customer relationships. The internet provides a new and cheap channel for marketing through advertising. Once in the internet any customer is able to see an advert posted and many are willing to place orders via the internet by sending emails directly to the web host. According to Armstrong et al (2005), the internet is an excellent channel for communication with customers on individual basis because of its immediate and direct interaction capability.
From company's point of view, a companycan enter the cyber marketing world without theintervention of any intermediaries simply by buying into the technology itself and by turning the medium into amarketing research as well as an advertising medium, interactive media also operates in territories not covered by a vendor'ssales force, therefore reaching the showroom and the sales pitch to the buyersremote locations simply by dropping it in the post.
It can be agreed that internet marketing improves brand image of a company or products or both, hence it is a revenue earner, reliability of the country is very important for the success of internet marketing. Companies necessarily focus their internet marketing based on the gender difference and so make more money though Consumers remain uncertain. Internet marketing can be used successfully whether it is industrial products or consumer products. It is undisputable that online support is an important factor to make internet marketing a success. Companies and consumers agree that more user friendly, better key word matches would drive the future search engine marketing.
2.6 Pricing factor in internet advertising
Prising in internet advertisement is a subject which can not be under minded as it involves the reason for advertising (both the advertiser and the consumer) each product or service advertised carries a different parameters depending on the desires of the individual consumer who finally decides on his/her preferences. After this determining factor of attribute parameter of product, the price becomes a relevant factor. Price is a parameter of buyers decision that can not be overlooked, further more, when a characteristic is considered more important than price in making a purchase decision, then its value is considered to be a requirement for purchase, but if the intended characteristic is considered less important than price, then acceptable range can be seen as preference rather than requirement (Joan Morris and Paul P. Maglio, 2001)
Therefore, price is a general determinant for especially price sensitive consumers.
Internet advertisers have different pricing techniques to attract new buyers and at the same time maintain already existing consumers which is based on consumer characteristic and the dynamically nature of demand and supply. Some of such frequently used pricing techniques are:
As the term indicates, it is the dynamic adjustment of prices to consumers depending on the value attributed to product or service by these same consumers. By making provisions for affordable prices for certain products, this system instigates optimal results for consumers and hence enhances maximum sales to those selling. With internet marketing, there exists an evident shift from fixed pricing to dynamic pricing with greater competition existing against the formal and still existing traditional marketing system.
It is a process whereby the same product of different units is sold at different prices to different consumers. With price differentiation, prices differ with the number of units sold. This could involve group pricing, discount pricing etc. With price differentiation, companies decrease the suitability of their products and services by customising their offers to the requirements of specific customers or market segment. This provides the customer with an advantage to purchase the said product or service.
Using these pricing techniques enables the consumer to purchase a product by stating his or her own price, considering the suitability of the product in question. The right price in the market can not be easily determined, prices are competitive and this directly influences price sensitive consumers who have the tendency to fall for the most appreciated prices during their purchases.
The best price in internet market does not only consider the price established by the producer or seller but also that requested by the buyer or consumer. Internet marketing offers the opportunity for companies to test prices, segment customers and adjust to change in supply and demand (Efraim Turban et Al. 2006)
to consumers these pricing techniques are advantageous in the sense that consumers have the opportunity to find unique items and collectibles, consumers remain unanimous, internet market creates a bargaining atmosphere enabling the consumer to opt for the most affordable price, it is more convenient as consumer is not obliged to change location to execute a purchase and for the producers, they gain more customers by offering more items directly, it enhances maximum sales which is a fundamental base of every business, it improves customer relationship and customer loyalty to already existing customers.
2.7 Factors influencing internet users' respond to internet advertisements
Internet users all around the world are influenced by a wide range of forces in and outside their locations. Knowing how users respond to internet advertisement enables advertisers with an understanding of the user's behavior which in every indication helps them to plan and build up strategic internet advertisement plans. By furthering this part of the review, I intend to identify some factors that influence internet users' response to internet advertisements.
1. Cultural influence; this is the influence provided by the society which includes, norms, traditions, habit, rules cultures etc. The latter has been passed on from one generation to the other thereby influencing individual in various ways.
2. Economic influence; this refers to the economic ability of the users in the same country or different countries (in our case, Nigeria and Hungary). The ability to access the internet, degree of willingness to view adverts and probably respond. Economic influence in this case could be reflected in countries' internet availability, employment and income, amount of disposable income etc.
3. Geographical location; this term could relate to the countries location, the climatic conditions etc. that could hinder or encourage users to use the internet.
4. Marketing strategy; this implies that key information should be passed to the right person at the right time. Advertisement viewed by an individual who can not access the reason for the advertisement is considered unimportant. Or an advertisement that undermines a culture is regarded as a taboo and spawns criticism.
5. Environmental influence; embodies technology, economic, political, legal and cultural factors. Knowledge of the internet is bred into users by their environment hence both users and the internet make up the environment.
6. Language influence; this relates to the language in which adverts are formulated. These adverts will be viewed by the international community but only a hand full could understand their implication because of the nationally tied language.
All these factors are the forces that compel internet users to respond to advertisements.
2.8 Economic development
2.8.1 Economic development in Nigeria
Nigeria with a land surface of 923,768 sq km, harbors a population of over 149,229,090 (2009, according toCensus Bureau) and has GNI per capita of US$ 1,160 (World Bank 2008), with a GDP of $183 billion (2008) which consist of agriculture 33%; industry 39%; and services 28%. The Real GDP growth rate (2009) is 4.4% consisting of Oil growth: -18%. Non-oil growth: 3%. Nigeria natural resources (Oil and natural gas tin, columbite, iron ore, coal, limestone, lead, zinc) contribute 37% of GDP (2006). With a vast Agriculture base, the products vary from cocoa, palm oil, yams, cassava, sorghum, millet, corn, rice, livestock, groundnuts, cotton etc.Textiles, cement, food products, footwear, metal products, lumber, beer, detergents, car assembly are a combination of Nigerian industry. Their Per capita GDP stands at $1,418 (2009) with an inflation rate of 11.5% (2009).2007 statistics for trade exports and imports are as follows: Exports; $65.5 billion- fuels and mining products 97%, agricultural products (cocoa, rubber, oil, nuts) 2.2%, manufactures 0.8% Partners here include, United States 38.3%, European Union 21.8%, India 9.9%, Brazil 6.8%, Japan 4%, and Imports; $29.5 billion- machinery, chemicals, transport equipment, manufactured goods 72.3%, agricultural products 23.7%, fuels and mining products 4% with partners like the European Union 33.2%, United States 15.6%, China 7.2%, Korea 2.8%, U.A.E. 2.6%, others 15%. Nigeria's foreign direct investment is at 6.2% of GDP (FDI, 2007).
(Source:CIA World Factbook). (see appendix, Diagram N5 and Diagram N6)
The Nigerian Government has identified access to telecommunications as a critical factor in the development of all aspects of the nation's economy.
Ernest Ndukwe who spoke at the Nigerian Telecom Development Lecture (NITDEL) in Lagos organized by Logical Communications, listed broadband and wireless connectivity as key factors in the Nigerian economic development. He added that two major technologies, digital mobile phones and the internet are currently driving a new level of connectivity that were hitherto unknown and are enabling various transactions to be carried out over high capacity modern networks on anywhere, anytime basis, adding that the content flowing over such modern networks includes not only emails and telephone calls, but also music, movies and television, demanding huge amounts of bandwidth. In 1997, Nigerian leaders decided to incorporate the marketing process into their economic development.
There are, however, some major challenges related to the poor communication and transportation infrastructure and the legal infrastructure not being open to interpretation by marketers that are impeding progress. Slow deregulation continues to be a problem. Other issues are the unstable power supply, the corrupt dual exchange rate system, and the struggling treasury.
Nigeria, like all other markets, has its own effects on the four P's of marketing and its own unique marketing variable (the Nigerian Consumer). (Source; Emma Okonji 2009)
2.8.2 Economic development in Hungary
Hungary has a Country Area of 92,966 sq km with a population of about 9,905,596 (2009).
Hungary has made the transition from a centrally planned to a market economy, with a per capita income nearly two-thirds that of the EU-25 average. The private sector accounts for more than 80% of GDP. Foreign ownership of and investment in Hungarian firms is widespread, with cumulative foreign direct investment totaling more than $200 billion since 1989. The government's austerity measures, imposed since late 2006, have reduced the budget deficit from over 9% of GDP in 2006 to 3.3% in 2008. Hungary's impending inability to service its short-term debt - brought on by the global financial crisis in late 2008 - led Budapest to seek and receive an IMF-arranged financial assistance package worth over $25 billion. The global economic downturn, declining exports, and low domestic consumption and fixed asset accumulation, dampened by government austerity measures, resulted in an economic contraction of almost 7% in 2009. As of December 2008 Hungary's GDP was approximated at $163.9 billion with an annual growth rate of 1.8% and per capita GDP of $16,400.
Raw materials such as bauxite, coal, natural gas, fertile soils, arable land, make up some of Hungary's natural resources. Hungary also has an agricultural and forestry base which includes Products such as meat, corn, wheat, sunflower seeds, potatoes, sugar beets, dairy products which in total contributes about 3.4% of GDP. Machinery, vehicles, chemicals, precision and measuring equipment, computer products, medical instruments, pharmaceuticals, textiles are all combination of appliances that make up Hungarian Industry and construction, and it contributes up to 45.4% of GDP (2008). Hungarian Export amounts to $95.0 billion with a market based mainly in the EU (Germany, Austria, Italy, France, U.K., Romania and Poland) to which they export machinery, vehicles, food, beverages, tobacco, crude materials, manufactured goods, fuels and electric energy. Their import amounts to $94.9 billion from countries such as the EU (Germany, Austria, Italy, France, Netherlands, and Poland), Russia, China, products such as machinery, vehicles, manufactured goods, fuels and electric energy, food, beverages, and tobacco.
(Source:CIA World Factbook). (see appendix Diagram H6 and Diagram H7)
3 Overview of the Research Methodology
This section will explain and justify the methods used to carry out this research. It will give the reader an understanding of the process used to conduct and analyse this research. Thus this research will be treated in categories such as;
* Research purpose; in which we shall explore, explain and or describe,
* Research method; in which we shall focus on the quantitative and qualitative aspects of the research,
* Research strategy; which will reflect case study, surveys and some history,
* Data collection; which explains the tools used for collecting data.
3.1 Research purpose
The purpose of this thesis as described by Yin (1994), that research strategies can be used for the purpose of exploration, description or explanation. By exploring, describing or explaining I will enable and understanding of how internet users in Nigeria and Hungary respond to internet advertisements with focus on the technical aspects, social networking and simple basic adverts in websites. In addition I am seeking various answers and perceptions of what people from these different countries think about these adverts and the effect it has on them in a cultural perspective considering the fact that both cultures are not only socially different but also economically and educationally.
In every research a very strict process has to be followed in order to avoid a huge amount of errors. This research is mainly exploratory, considering the fact that factors influencing the responds to internet advertisement is relatively new and that there exist no clear theories that connects all research areas together, more so as the objective of this research is to describe the response from internet users with respect to internet advertisement. In addition, I have not been able to find other studies with the exact same comparism thus; this research rests between exploratory and descriptive strategies.
The main purpose of this study is to find out how Internet users in Nigeria and Hungary respond to internet advertising .This is a main issue because these two countries have a huge difference in cultural response. Therefore this research will carefully consider eliminating biases by using a comprehensive methodology. A survey by mail will be used with structured questionnaires including structured interviews. The study will explore the responsiveness of internet advertising between these two different cultures and then compare and contrast similarities and difference. In doing so, quantitative and qualitative methods are used.
3.2 Research Population and Procedures
The principal methodological problem of this dissertation is caused by the fact that Nigerian and Hungarian Internet users are coming across internet adverts and a huge number of people have different perspectives about this. A survey was chosen as a primary tool in order to gather information which was presented in the form of interviews and questionnaires. Questionnaires were usually filled in by the respondents themselves, while an interview based on information was obtained allowing face to face communication, which resulted in better quality response, fills in the interviews. Though questionnaires were not the best tool to record detailed written responses, explanatory questions were considerably included to the survey in order to be able to gather as much detailed information as possible. Graphs and tables were analyzed to support the credibility of the thesis. Comparing my research with that already performed by NRC informationline, august 2009 in Hungary who focus their research on the whole nation makes it obvious what my observations are.
3.3 Data Collection
Researchers need to look for several sources for data availability on the topic area of the study, once the said sources are located, then grows the need to search for further data for their specific research problem and make judgment on whether the information available is credible enough to be used or not (Pervez Ghauri et al. 2005).
To get a clear view of the whole topic, various sources were obtained. During the data collection, evidence was focused on the hypothesis which was outlined earlier on. The research methodology consists of gathering primary and secondary data. The secondary data are obtained from resources such as books, journals, articles and the internet websites. Were primary data collection is impossible, secondary data sources could be used (Pervez Ghauri et al. 2005). The literature review section includes theoretical background gained from the preliminary Research and research of other topics with related backgrounds. The disadvantage of collecting secondary data is that information such as surveys Collected from various Nigerian and Hungarian websites may not be up to date. According to Pervez Ghauri et al. 2005, secondary data are useful to solve research problems apart from finding them. Thus the information I used was gathered from a multiple sources such as books, journals, articles, search engines, past studies done around the research area etc.
Questionnaires were mailed to friends of both Nigerian and Hungarian nationalities since my research focused on these two countries. Before the interviews were carried out a questionnaire was sent to prepare the prospective interviewees for the subject via email. The questionnaire was served as a basis of discussion and opinions of the subject in question. The length of each interview was not more than fifteen minutes long .After each interview there was a summarized conclusion so that each interviewee's perceptions remain by my own bias. However the disadvantage of primary data used is limited availability of people who filled out questionnaires and who were interviewed. These primary researches were used to strengthen the results gained through the secondary data collection.
Secondary data and primary data were relevant for a clear research analysis. For secondary data I used books on marketing and global advertising to get a clear view of internet advertising. In addition to this, Internet sources were my main focus since the main aspect of this topic is focused on internet advertising. I gained information from journals and books and I particularly used Google scholar for gathering data on survey analysis and online databases.
Specifically my primary data was researched by looking into the internet history of these countries to see the differences in usage of nationals and their response to adverts. Some primary data was also researched from the two major companies in Nigeria and Hungary called MTN Nigeria and IBM in Hungary where the internet is used very frequently thereby finding out the effectiveness internet advertising has on employees. The interview questions were specifically about their view on the technical aspects; social networking and website advertising they see at work for example pop up blogs advertisement. The main part I was also interested in was how they react towards the ads. I also interview Nigerian and Hungarian students to get their own opinions. Staff at the Nigerian embassy consular section was also interviewed.
The interviews were structured in a way that it becomes useable .I also called some business people to get a current view in order to answer the questions and the objective parts of my dissertation. Internet users both in Nigeria and Hungary are questioned by use of qualitative questionnaires.
The questions asked were more than 10 but less than 20 questions with a scale of 1 to 5. 1being the lowest and 5 the highest scale. The qualitative method wasn't very complicated making it very interesting and less time consuming was my main priority. Middle aged people in particular High school, undergraduates and working class individuals were questioned in Hungary and Nigeria. The age varied between 15-30 years old. In order to have a greater knowledge of sample here dealing with two different countries sample convenience was applied .In case of cross national analysing cultural difference was asked in order to accumulate reliable and valid data from both countries.
Questionnaires were filled out online and in person .I interviewed young people with surveys and also send surveys to be filled out online using various survey websites. What I did about the Nigerian survey is; I sent emails to Nigerians of a particular age group regarding advertisements they see on the internet. I used particular websites to help me publish my questionnaires and sent via mail to those who I couldn't reach personally.
Questionnaires were filled out online and in person .I interviewed young people with surveys and also send surveys to be filled out online using various survey websites. What I did about the Nigerian survey is; I sent emails to Nigerians of a particular age group regarding advertisements they see on the internet. I used particular websites to help me publish my questionnaires and sent via mail to those who I couldn't reach personally.
3.3.1 The Quantitative Research Method
During my quantitative research graphs and pie chart and tables were available to be able to analyze the information gained by primary research. At least ten Nigerian and ten Hungarian internet users were included in the quantitative research which was part of receiving and sending structured questionnaires by mail. The information obtained through this method was also analyzed and compared in the Data analysis section.
3.3.2 The Qualitative Research Method
The qualitative research was conducted in order to support the results obtained from the quantitative one. Qualitative research deals with qualitative characteristics, i.e. usually concerns process of measurement estimation of the psychological or emotional data. It can reveal the qualities which are not giving in to a direct unequivocal estimation or value which are difficult for transferring in figures, for example, features of behavior or relations. The researcher standing on items of qualitative analysis can be skeptical about use of quantity indicators, as numbers very rough instrument. In the second main part of the primary research structured interviews was conducted in key formats. It was harder to get access to Nigerian internet users since I was not recently in the country. Shortness of time was the main issue expected for reaching out to the people. When having direct quotes while interviewing making sure the people who are being questioned knows their names was absent so their identities won't be revealed.
3.3.3 Methodology of Evaluation
The purpose of evaluating primary and secondary data is to provide an answer for the hypothesis which was defined in the introductory section. The secondary data is a good basis of the study and there for the researcher was able to see the comparative study evidence of Nigerian and Hungarian internet users focus on advertising. As a further step, the results of the secondary data and the information gathered from primary research were analyzed and compared thus generating the forwarded conclusion. A conclusion based on not only the response to internet adverts but including internet usage, the various markets, and the geographical situations.
3.3.4 Validity and Reliability
The researcher ensured that the research reflects the truth in order to prove that a quality study was carried out. This includes the way empirical data is analyzed and interpreted.
This particularly reflected in the way the empirical data is collected, analysed, and interpreted. Contingency measures were therefore taken to enhance the internal, construct and external validity of the study as well as reducing the impact of subjectivity and other sources of error to obtain a high degree of reliability. Thus while gathering analysing and evaluating, empirical data actions were taken to guarantee interpretations were reliable as well as construct remained unbiased.
3.3.5 Internal Validity
This is very essential to match weather reality results has been conducted. The study was based on multiple sources of data in order to achieve high internal validity which includes primary and secondary data. Thus certain errors maybe included. However to guarantee that the errors were eliminated as well as to lower subjectivity of individual interpretations the primary data can be evaluated by more than one individual. Internal validity could be disoriented or faulted by the researcher should in case he or she tries to reflect his or her own reality contrary to the reality defined (said to be biased) and if in the other hand, the collected data is not relevant and valid to the task and helpful to provide truthful explanations of reality. To support this piece, multiple sources (mentioned on the reference page) were used to ascertain the facts demonstrated hereby minimising the risk of errors to close to nonexistent.
3.3.6 Construct Validity
This may be very difficult in qualitative research while making questionnaires interview designs as well as data analysis. In the qualitative part of the study, it has been very difficult to associate the operational definition to the two countries in question that make up the subject studied. This is because of the extensive difference in the two cultural backgrounds of these countries. Principally, multiple sources are used to prove the correlation and objective reliance on the fact that these two countries are treated similarly as discoursed in this paper were as they economically and politically different.
The researcher maintains an objective stance in order to ensure and construct validity. Furthermore the same questions were asked from each interviewee throughout the interviews. In order to perhaps lower the probability of construct errors, at each company in both countries three employees were interviewed their views carefully compared at the end. The data was compared and contrasted in different ways. To these observations, a characteristic argument is set to make it more visible and prove its worth
3.3.7 External Validity
The external validity represents the extent at which findings of the research can be generalized to other similar situations cultural differences surely reflected in the findings of the internet users in Nigeria and Hungary. This research if focused on other nations, similar factors and conditions will be observed. However perceptive may be changed as we enter a more globalised and diverse world.
The purpose of reliability is to reduce potential errors. In case another researcher would wish to conduct a similar study he or she should come up with similar results. The secondary research part may be different since this might be based on the past internet users experience. .All in all, the application of primary and secondary research is of crucial in case of carrying out a study as this proves that there results are valid and acceptable. The primary data was mainly used to get a better understanding of the results obtained from the secondary data. In case of carrying out a study this proves that there results are involved and acceptable and case the methodology is wrong, then the basis of the whole study would be weak and unreliable. It is unquestionable that if a similar research is conducted on this topic, the same conclusions will be observed.
Due to the dynamic nature of the subject in question, it gives the possibility to an everyday valuation and innovation brought by the media by participants. Leading to opinions being investigated, new assumptions derived, proposals enforced and relations proven.
Should in case some theories are of primary importance in understanding the importance of this comparison; the aim of this research is neither to refute nor to validate them. The target is to try to explain some of the possible ways in which Nigerian and Hungarian internet users respond to advertisement which they come across in their daily lives. Further study could tie these same countries to investigating the social impact on development before and after the introduction of the internet with respect to the population and international market.
4 Research findings and analysis
The desire to carry out this research work was based principally on some basic questions were first raised, which I felt a need to research on and hence provide answers. From these questions erupted the research topic. Having reviewed the literature above, here now is the critical presentation of my research. The research work is represented with diagrams drawn to ease understanding of readers and thus in association with other material presented serve as a solution to the research problem. These diagrams will be drawn in segments to analyse critically the emphasis of the research findings.
This research proved that, internet usage of both countries (Nigeria and Hungary) has changed drastically within a short frame of time and considerably changed the system of marketing. Our study reveals the answers to aforementioned questions (the questions that stand as bases for this study). Our survey sample was based on a small set of companies, consumers and a few internet marketing agencies. We were able to obtain responses to surveys only from consumers and very few companies.
4.1 Findings and analysis on Hungary
After a survey analysis on internet advertising in Hungary, it is now clear that 92% of the respondent click and survey internet advertisement on a daily bases similar to previous study by Gemius & partners. This proves that Hungarian internet users rather have a positive attitude towards internet advertisement. Of the 92%, 90% of this population stand out as students aged less than 25 years old and the remaining 10% are aged between 26 and 40 years old. They all agreed to the fact that internet adverts information provided by advertisers where sometimes limited and 46% of this population declared further that they search for further information to enrich their findings. Of this same population, 43% requested that advertisers should include options through which they could be redirected directly to web sites where they could buy a product of interest.
65% of respondents agree that companies that indulge into internet advertising are modern and evolve with the new marketing changes making it accessible for consumers to effect purchases without necessarily changing ones location. With the new technological advancement and the diversification of consumers it is a considerable means of maximizing effective return for companies by increasing customer awareness. Internet advertising is at the same time innovative and dynamic indicating the powerful influence of the internet as a branding medium.
As a result of the internet providers, the consumers have the access to the internet adverts. 93 percent of the respondents agreed that they were whole fully satisfied with their internet providers. 80% of respondents agreed to UPC as their internet provider, the remaining 20% was shared at an equitable portion between T-Mobile and Pannon.
This study also found out that over 90% of internet users actually frequent other web sites to better understand prior viewed adverts and gather more information before actually shopping if their interest for the product is proven. They gather information about the company, manufacturers, and distributors, compare prices and enquire from prior consumers of the said product with whom they can share experiences. Of this 90% my research proved that over 60% of those who view the adverts have either tried to order or actually ordered products or services regularly. The remaining 30% remain more or less undecided.
More than 93% of respondents acknowledge that during their usage of the internet they came across ads in one or more of social network common to us all today such as; iwiw, freemail, Facebook, expressz.hu, Blikk.hu, profession.hu, talalka.hu, totalcar.hu, youtube.com, myVIP, startlap, origo, freeblog.hu, femina.hu, chat.hu etc. explained that they frequently use the most
This research proved that the most consistent users are teenagers and youths of ages 35 and less. They spend countless hours on such social networks like facebook, iwiw, youtube, to familiarise themselves with new occurrences and make new friends. By so doing creating an open field to be exploited by advertisers who do not miss the least opportunity to make themselves recognised.
Though over 92% of respondents agreed that they click and survey internet ads, the remaining 8% expressed their grieve relating to why they do not at all, they click either by mistake and will not survey any. A variety of arguments based on their individual differences. According to some respondents, internet adverts are misrepresentations of what really is, “advertisers merely describes products to their perfect quality but in the real sense it isn't what is in the stores” one respondent wrote to further explain the reason for the forwarded disagreement. Some explained that the information provided on adverts are partial and lack full explanations as to the total cost of transaction which after purchase (filling in credit card numbers ) it turns out to be more expensive than they had previously seen because of the extra charges that immerge from doubtful sources. (see appendix, Diagram H5)
4.2 Findings and analysis of Nigeria
Nigerians rather have a negative attitude towards online advertisements. Most of the major indicators assessed in our survey rather showed though a marginal improvement in the number of people who click and survey internet adverts, none of them actually have bought products online. Despite the shortcomings of other factors that hinder the rapid progress and extensive knowledge of internet network, usage and hence response of users to internet advertisement, Nigerians are not new in that domain. Users made mention of using network providers such as Multilink, MTN, Glo, about 70% had no idea of what service provider they use since they work occasionally in a cyber cafés.
Survey results for Nigerian users demonstrates that the said users expressed their dissatisfaction with their service providers with by 67%, the others though pleased still had something to say about the exorbitant cost levied on them by the internet providers. After the said survey, Nigerian internet users followed that though they see this internet ads, they are in no bit compelled or attracted to click and view them. Of the total percentage of users there is a marginal 30% who border to click on the internet ads. This implies that a very handful of them are captivated to these ads and of this handful, only 9% acknowledged that it was fun browsing through the ads and therefore click on all ads they come across while a greater majority that is 17% clicked and surveyed 2 of every 5 ads they came across while performing their social activity. The remaining 14% accepted that they do click on ads but once in a while but never really surveyed any.
‘Internet usage in Nigeria is more of an interactive media rather than a marketing medium' a respondent insisted, Nigerians do not actually find it a necessary medium for advertisement due to the multi traditional social aspect of the country. Most users will not click on ads because they are afraid of seeing something which is against their religion or custom, things which stand out as taboo. He concluded. Of the percentage that actually click on ads, only 4% will attempt or actually order products, they raise arguments that about 78% of the ads are fraudulent.
The study showed that, Students aged 15 to 27 made up 60% who are the most active and consistent users population, 30% were persons aged 28 to 36 used the internet at least 5 days a week and 37 to 45 years made up 20% using the internet 2 or 3 times a week.
Respondents acknowledged usage of several social links through which this adverts make appearance such as; facebook, youtube, hi5, messenger, msn, myspace, twitter etc.
Most respondents accept that internet marketing is an effective marketing tool, but yet insist that it still will take years for that to be effective. They still have trust issues with advertisers and not until this is resolved internet advertisement will still be disregarded as it is. They proposed that more credible information be provided to fully describe advertisers and their respective addressed be provided. (see appendix Diagram N3)
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