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Advertising and the Consumer Information Environment Online

University of Minnesota

Mira Lee

Michigan State University

Xiaoli Nan

University of Minnesota

The Internet has apparently become an important source of information for consumers and partly because of this trend, the Internet now presents a huge opportunity for advertisers who seek effective communication with their target markets. The purpose of this article is to provide an understanding of the qualities and potentials of the Internet as an advertising medium. First, an overview of the various forms of Internet advertising is provided, as well as a review of existing literature regarding the effectiveness of each form. The article next compares the Internet with traditional mass media from the perspective of the consumer information environment and shows how unique characteristics of the Internet may alter consumer experience and decision making. The article concludes with a discussion of the needs and challenges facing the field.

Key Words: advertising • Internet • new media • consumer information • consumer behavior

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