Online classified Advertisements & consumer Buying Behavior: A case of analyzing the behavior of Karachi Buyers towards “OLX”

The aim of this case study is to evaluate the impact of classified online ads available to shoppers for their convenience and to examine their buying behavior in Karachi. In this study sample size of 270 respondents has been taken by using a convenient sampling technique. Internet is a feasible option of buying products so, the variables used in this study as an independent variable are usability, interactivity, trust, marketing mix, aesthetics, and the dependent variable is consumer buying behavior. Factor analysis, Regression analysis and Reliability analysis are the statistical methods used in this study to analyze the results.  Results show that usability, interactivity, trust and marketing mix has a positive impact on consumer buying behavior while classified ads webs are weak in the aesthetics area and also lacking in retaining consumer interests in purchasing. After including demographics variables and excluding the limitation of this study for a specific area, a researcher could expedite research from a new perspective. The findings of this study contribute to the existing body of knowledge as it is the first case study that targets the online medium of purchase in the context of Karachi.


I. INTRODUCTION
The Consumer Buying Behavior (CBB) is the most beloved topic in marketing for knowing the demand and preference of consumer towards any brand / product. There are several types of advertising in an online advertisement, likewise; social media ads, email ads, affiliated ads, ads appeared during searching, display ads, mobile ads, richen media ads and classified ads, to develop interest of consumer, whereas, it is also the basic factor for frequent purchases in online web, i.e., first time purchasing would be done on the basis of brand popularity and promotion [1]. So, if the product/brand is not providing the facilitation and easiness to the consumer as it is described in its features, the accommodation for second time purchasing will not get influenced by the consumer, because by only providing deep product information is not enough to ensure product perceived quality, explained by the producer [2]. Consumer buying decisions towards online advertisement is moreover depending upon the attitude, behavior, concentration and interest of consumer. The study conducted in 2007 showed the importance of web shopping i.e., 75% consumers responded online, which depicts their satisfaction level and good customer service towards purchasing products online. The evidence founded from 1990's shows that 20% of several buyers in the world chooses web for shopping and many of the producers do not understands it still. Interaction with the advertisement is demographically segmented under the variables like: age, gender, income, occupation, marital status and either weird life style and time starvation [3]. Consumer wanted to buy online when the web ads aired in a proper way because ambiguity, unreliability, unfocused and bulging ads makes consumer to think twice before purchase. Web advertisements itself are the major strikers for the organizations to get more consumers on board [1]. Attractive online advertisements makes consumer's mind towards initial buying and stated willingness, so those organizations who advertise their products on internet should have to make advertisements to be more informative and to induct bright colors to obtain instant response. An effective ad also requires trustable communication with the consumer, so that the basic aspect of making ad could be achieved [4]. Generally, online consumer buying decisions always depends upon their past experiences and brand recognition which requires a proper use of technical and marketing skills [5]. Consumer can be influenced through web providers when they give them methodical information, emotional attachment, functionality, stimulus responses and quality service, whereas, security, trust and privacy are the major psychological factors which makes customer mind to become self-addicted to the web buying [6]. If the advertisement is stimulus in nature, the prediction of a buyer mood can't be easily understood, comparatively, if the ad is knowledgeable, concise, curable, convenient, price panel available, reliable and interesting and following the marketing rules, than, mind reading of consumer prefers the best from him and it supports the online web stores to get positive feedback by providing all the facilities at one shop [2][3][4][5][6][7]. Lots of work has already been done to analyze the factors affecting online advertisements on consumer intensions, meanwhile, classified ads are that punching area which was not get selected before. The study done in 2016 has shown that the future of online purchases will increase globally, therefore, organizations need to quantify the web experiences featured by consumers, so that they can tickle the mind of consumers for building strong connection, when consumer taking a decision for buying a product [1]. It was also suggested that searching through a communicable and informative advertisement increases the efficacy of ads [20]. In Pakistani market the concept of online purchasing is in a booming era, whereas, there are gaps which have been identified for this Generally people think that the information provided online is not a good option to communicate and exchange but OLX is that forum which provides their consumers a vast knowledge of things they can not only purchase but can exchange with reliability.
The main objective of this study is to examine the impact of online classified advertisements on consumer's buying intensions towards, OLX website. Furthermore, this study is useful for the people who are interested in taking information before purchasing and for that they are using web advertisement (classified ads), through online websites. The study also finds the impact of advertisements upon purchaser based on OLX online browsing, it can vastly give suggestions to the internet advertisers for the products that, these web ad effect factors need to consider when doing it; so by this they can get help and have solutions for their future sake. This study contributes to the existing body of knowledge by adding; i. This study discusses the (OLX) medium of online purchase as case study particularly in the Karachi Region. ii.
This study suggests the practical implications for consumer to take informative decisions for online shopping decisions.

II. LITERATURE REVIEW
Drawing consumer's interest for internet shopping requires a complete analysis of the elements needed to settle an effective website like innovative usage, favoritism, choice, behavior and demographic traits are the basic elements requires for a good communicative advertisement. It is also suggested that virtual retailers may have to give better services in one to one marketing programs, payment procedures and purchase options to ensure lower hesitant behavior [8].
The buying behavior of consumer isn't different from the physical one because the marketer approach for providing best solutions to the consumer needs requires a suggestive website that changes, daily [2]. The importance of online advertisement for branding and shopping are enfolded. Basically it helps organizations to capture consumer's visual attention and psychological state [4]. The branding of a product by using online advertisement is easy and renowned nowadays, but usually consumers become hesitant when buying expensive goods on internet rather than collecting information about them. Which means that consumer have thoughts in their minds on preliminary basis which keeps them to expect better service, quality, procedures, transactions, feasible, product categorization, prices, brand name perceived utility, security, and modesty of shopping environment, satisfaction to website, inspection of product on website, orienting of internet shoppers and price fluctuation and convenience from website when doing online shopping [9], [10]. Demographic variables like age, income, occupation, gender, life style, marital status and time starvation demonstrates the relationship between consumer, e-purchasing and good advertisement [11]. There are Six types of online buyers identified as (simplifier, surfer, connector, bargain, routine followers, and spotters) [3][4][5][6][7][8][9][10][11][12].

A. Usability
Usability is defined as a product that is valuable and it can be used or either has ability to cater. It can also be defined as a person's thoughts about the credibility and capability of website for catching the required information, easy movement of a site (navigation), speed, quality of information, payment procedure and feasibility, by these handy qualities consumer effort for convenient web access is stopped; as under usability is concerned [13], [14].

B. Trust
It is a major element of online buying and has dimensions, factors and dependable constructs. In an online environment trust should be necessary and needs to be implemented by trustee, who makes shopper and marketer both satisfied with their charms [14]. This can be done by fulfilling the gaps of consumer security of data and misuse of data. Spam, scam, fraud and hacking are the problems happening in online environment. A study was conducted concludes that the reliability of internet advertising through recall was low as only a small percentage of the respondents could recall the online ads they had seen. Though, this is creating an issue for websites, to be more reliable, when providing information [15].

C. Aesthetic
In the area of web designing, aesthetic is the key factor by which organizations could attract their consumers whenever they use website for virtual shopping, getting information or purchasing, they gets attracted to the website after having its first look [8].
Aesthetic is an inventive and creative factor, applied to online websites for attractive presentation which appeal consumer to perceive happiness and have their imaginations, become true. Presentation of the web also depends upon its quality and it also motivates customer to interact more with the site [16]. The buyer's behavior to online shopping can be altered by designing an accessible and attractive website [17]. If the quality of the website is high then positive attitudes towards the retailer's website can be established [18].

D. Interactivity
It gives consumer a personalized function to interact with the web and with each other for comments, suggestions and lively help and in transaction to be noted that what products are easy to purchase. It also gives consumer an option to contact vendor for customization and transaction. Technological trends and attributes have a noticeable effect on consumer behavioral intention and observed behavior in the digital setting [19]. Extensive research shows an important role of interactivity in the attitudes and behaviors of customers and in particular consumer behavior in the online setting and on social platforms [20][21][22]. Shoppers who perceive greater interactivity often see social media ads as being more beneficial and fun and have more intentions of buying goods [20].

E. Marketing Mix
In online buying behavior there are some elements inherited to verify called Marketing mix. Those elements are part of marketing and said to be as: 4p's of marketing, i.e., product, promotion, price and place; integrated with consumer behavior in which communication, product assortment, web features, presentation which are necessary for website, should be followed for gathering users to interact or fulfill their needs [2]. Marketing mix is also a potential area to capture customers in an online environment [23]. Also it was suggested, that quality product, product features and its assortment, implementation of good pricing strategy, understanding online customers' needs and providing them [7]. Entertainment in online ads is as important, as in television ads after technological advancement and digitization. In particular, trust is seen as one of the most influential variables in the online shopping perspective. Online shopping is actually thought to pose risks to customers due to the lack of direct contact and cooperation with the physical store and its employees [24].

F. Conceptual Framework
The conceptual frame work of online classified advertisements and CBB is shown in Fig. 1, for ease of understanding.

III. METHODOLOGY
The quantitative research approach is applied to analyze the impact of online advertisement on Consumer Buying Behavior (CBB), in context of consumer response towards classified advertisements website, OLX. The Research design implied is explanatory. Data collected through primary sources with the help of questionnaire which was adopted to facilitate data collection [2][3][4][5][6][7][8][9][10][11] Likert type scaling is verily used having five types of options: 1. Strongly agree 2. Agree 3. Neutral 4. Disagree 5. Strongly disagree The questionnaire filled in by 270 respondents who prefer web ads for information and buying through classified advertisements at OLX and consumer behavior was analyzed towards them. Systematic Random sampling was used to collect data from consumers who used OLX as a medium for information and exchanging products. To precede this study, factor analysis and regression techniques are applied. Regression analysis measures the dependency of the one variable to other independent variables.

A. Regression Model
The Regression model used for this study is: CBB = ∝ + β1 U +β2 I + β3 T + β4 A + β5 MM + ε Where: U stated as usability, I stated as interactivity, T stated as trust, A stated as aesthetics and MM stated as marketing mix.
These elements are analyzed and used in the model to comprehend the results.

A. Reliability
Reliability test is commonly used by the researchers for analyzing the instrument (questionnaire) reliability. After performing the reliability test in this study it is proved that the data is reliable. There are 40 questions measured for this study including both, dependent and independent variables. Reliability of the data denoted by the value of Cronbach's alpha, which should be greater than 50% (0.5). According to this study the value of alpha is 0.829 which means data is 82% reliable and it is greater than 50% so it is acceptable for study as depicted in Table I.

B. Factor Analysis
Factor analysis is a statistical technique used to reduce the data. In this study, factor analysis test is applied to group the items presented in the questionnaire and to know result of the selected variables that how much adequate they are. According to the values given above, for approving the KMO value, the Table II, has shown the result as 0.733 which means 73% adequacy for dependent and independent variables. 73% represents the very good adequacy for making groups further.

C. Rotated Component Matrix Analysis
The Table III shows the factors of dependent and independent variables. First factor consumer buying behavior (CBB) represents dependent variable which has 3 items. From the second column, all the variables are independent variables in which the second variable is usability and it has 3 items, third is interactivity and it has 2 items in it, fourth is trust and it has 2 items, fifth is aesthetics and it has 3 items and sixth is marketing mix that has 3 items, all the variables have 82% reliability as shown in the Table IV after applying reliability analysis.

D. Regression Analysis
In the regression table below, i.e., Table IV, the results of dependent and independent variable are present with their beta value, significant value and co-linearity value.  [2]. The value of VIF shows the multi co-linearity of the variables means that variables are highly correlated with each other and to know that the value for checking the VIF that it present or not is 10. If the value is less than 10 it is not correlated and if it is high, than it means that independent variables are correlated with each other. In this study all variables have the results lower than 10 which means variables are not correlated and multi co-linearity not present.
The adjusted R 2 value is 0.210 which means independent variables (trust, aesthetics, usability, interactivity and marketing mix) contribute 21% in the dependent variable CBB. The value of ANOVA significance is 0.000.

V. RESULTS AND DISCUSSION
This research has been conducted to know the impact of web experiencing factors in an on online environment to know the buying behavior of consumers towards OLX classified ads website. In this study the variables used, to analyze the web experiencing factors, were: Interactivity, Trust, Aesthetics, Usability and Marketing mix. These variables were divided into 25 characteristics as present in the previous study [2]. To analyze this study, primary research technique has been applied by using the instrument called "Questionnaire". in an online shopping and exchanging information through classified ads at OLX. The result shows that the consumers of OLX gets conscious when they shared their details on website for selling and purchasing online due to the risk of losing information to those who have no relation apart, also they think that online transactions are not safe and it is hard to resume guarantee as defined. Customer also identified that sometimes OLX website display those products which doesn't present in that state which websites did claimed [14,26]. As far as concerning the aesthetics variable outcome, the designing of an OLX website didn't get appreciated by the consumers because they find OLX website less attractive. This means, consumers of OLX site want more color, beautifications and entertainment on the website for more engagement. In past researches, the researchers identified the same, that, as per the technological advancement and digitization which has already taken our life's to get engaged online on a regular basis, needs some attractiveness and beautifications [27]. The consumers of OLX choose Usability of OLX website and marketing mix as the most recommended area. Usability (convenience, navigation, quality of information) and marketing mix have a significant impact on CBB that means the information presented at the website is easy to reach, can navigate often and informative, also, it provides variety of product assorted so that person have lots of products and content for execution and access [28,29]. Interactivity has also a significant impact on CBB, Which means OLX site gives lively and easy access to their consumers to interact with each other. Interactive website provides their customer an immense experience of getting involved in the present situation. It also suggests that those websites that wants to engage more customers should become more interactive, creative and innovative [15].

VI. CONCLUSION
Finally it is concluded that OLX needs to improve its site's designing and to resolve trust issues for its users by using and engaging more technological and innovative ideas. It is also suggested that further research can be done by taking sample from other cities and to analyze which category or variant is mostly supported by OLX consumers and what area needs more improvement.