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4.1 Introduction:

The word Hypothesis is generally used in a restricted sense in research to refer to assumptions that can be used to explain observations. A hypothesis is a feeling, educated guess which is advanced for purpose of being tested. If research were limited to gathering facts, knowledge could not advance. Without some guiding idea or something to prove, every experiment would be fruitless, since we could not determine what was relevant and what was irrelevant. (Burns, 2000)

The formulation of hypothesis follows logically from review of literature on the problem. But problems are not the only source of hypothesis. They are often derived from theory too, since theory guides research and provides predictions which need testing. Hypotheses are working instruments of theory. Regardless of the source of the hypothesis it must meet one criterion. A hypothesis must be capable of being either confirmed or refuted. A hypothesis which can not be tested does not belong to the realm of science. (Burns, 2000)

4.2 Hypothesis Formulation:

In this research work author formulate the hypotheses on the bases of theory and pre-available data. This research work is strictly about the behaviours of people involved in search engine marketing in United Kingdom; other demographics had been ignored while speculating the hypothesis statements. Theory and pre available data (As discussed in previous chapter ‘Literature Review’) shows that search engine marketing (both paid and free) is becoming one of the most efficient ways to reach quick to respond and practical prospects. Pre available data also show that it is one of the cheap ways to access massive number of consumer. Therefore, author formulates few hypothesis statements which reflect that search engine marketing is fast, cheap and effective way to reach large number of prospective consumers.

Author used the term potential consumers in hypotheses because search engine marketing is initiated by user, which implies that search engine user starts the search by giving an out put in form of keyword, this keyword shows the interest of user in the product or services related to that keyword. This attribute increases the chances of converting queries into sales. Strauss, Ansary and Frost (2006) also recognise that search engine marketing improves a marketer's ability to be found on Internet search engines and directories by employing relevant keywords, phrases, and optimized Web site design. This visibility is not just putting the message across but like any other form of marketing, it is about giving customer value and building up a positive relationship, keeping this crucial aspect in mind author formulate a hypothesis statement which addresses the positive impact of search engine marketing on potential consumer. Marketers need to follow the basic rules of good marketing practice and not to bombard consumer with irrelevant information on SEM adverts, aggressive search engine marketing can backfire strongly.

Strauss, Ansary and Frost (2006) explain that free search involves optimizing one's Web site so it continually ranks high on search engine rankings; paid search involves purchasing keywords and directory listings on search engines so an "ad" is displayed when a particular keyword is typed in a search engine. Paid search is based on a bidding and cost-per-click (CPC) model, whereby a marketer bids for ads to be displayed and only pays for ads that are acted upon by the consumer. If an ad isn't clicked or acted upon, the marketer doesn't pay. Not all the end consumer/ user are aware of paid inclusion or paid adverts on search engine listings, although it says clearly on the result page ‘sponsored links’ above the paid ads but still not many are aware of it. To find out the level of awareness of the user, author formulates a hypothesis.

Consumers are increasingly using search engines to conduct primary product and ser¬vices research. Paid search engine marketing is one of the fastest-growing advertising mediums in history, having grown more than 40 percent in both 2002 and 2003 and expected to grow another 40 percent-plus in 2004 (Strauss and Ansary, 2006) . Google set the new market standards with the launch of programs like Adwords and Adsense, these programs has involved small organizations/ companies directly into SEM. By formulation of hypotheses author tries to find out weather Google really has changed the mood of market and small advertisers are also using the SEM as keenly as big brand names.
Search engine marketing offers mar¬keters a highly effective medium to reach potential customers and receive near instantaneous results. Marketers can contin¬uously optimize their marketing message and their spending and bidding plans, and then see daily results to analyze how effec¬tively their campaign is performing. These flexible options make search engine marketing very marketer-friendly. Most of the e-marketers prefer SEM over any other e-marketing method.
Consumer behavior is very important in every form of marketing, especially search engine marketing is user-initiated process so marketers should be aware of impact of their marketing strategies in end consumer. Few marketer user very attractive headings in their adverts to attracted customer but in fact they are not providing the information or services related to user‘s keyword or interest.

Click fraud occurs in pay per click search engine marketing when a person, automated script, or computer program imitates a legitimate user of a web browser clicking on an ad, for the purpose of generating an improper charge per click. Click fraud is the subject of some controversy and increasing litigation due to the advertising networks being a key beneficiary of the fraud whether they like it or not. (http://en.wikipedia.org/wiki/Click_fraud, 2006). To measure the severity of click fraud issue, author formulates a hypothesis to check if click fraud has really been a concern among the professionals and end users.

Google.com is most popular and dominant search tool on the internet at the moment. Google have set some real high standards in industry, other search engines are trying to keep up with Google’s incredible growth rate. One can rightly say that Google is the market leader in online search engines. Google has been very innovative in terms of search engine marketing. Adwords and Adsense are the programs which revolutionized the whole search engine market. Google has kept on bringing the new ideas in SEM for example the latest local search option and books.goolge.com are couple of new additions in Google’s network. So we can say that search engine marketing is changing its shape very quickly, its not just Google but whole market is changing its shape. Pay-per-call and pay-per-performance is driving SE market into new dimensions.

4.3: Hypotheses Statements:

As discusses in previous sections, Author realise that there are still many questions to be answered as far as Search Engine Marketing is concerned, Author formulate few testable hypotheses to prove the theory and assumptions.

Following are the eight hypothesis Statements:

H1: Search Engine marketing could give marketers access to large number of consumers.

H2: Search Engine Marketing helps marketers to build a positive relationship with consumer.
H3: Consumers know that search engine could have ‘Paid inclusion’ in listings.

H4: Only companies having more than 10 employees are involved in Search Engine Marketing.
H5: Companies use search engine marketing as main E-marketing method.

H6: Click fraud is damaging Search Engine Marketing.

H7: Google is the mostly used search engine in industry.

H8: Adwords is the mostly used Search Engine Marketing tool.

In the following chapters, author will discuss the collected data to test these hypotheses.

Next: Methodology

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