Digital Marketing and Consumer Behavior Analysis

The provided assignment is a detailed study on the effects of digital marketing on consumer behavior. It explores various research approaches, such as positivism, constructivism, and pragmatism, and discusses the use of experimental and survey research methods, qualitative techniques, and mixed-methods design-based research. The document references several studies and journals, including articles from the Journal of Marketing Research, International Journal of Research in Marketing, and Journal of Retailing and Consumer Services. It also mentions the importance of social media, online advertising, and electronic word-of-mouth in shaping consumer behavior. The summary aims to provide a clear understanding of the assignment's content and relevance.

Dissertation Proposal

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Overview of research........................................................................................................1
1.2 Background of research....................................................................................................2
1.3 Rationale of Research.......................................................................................................4
1.4 Research Aim...................................................................................................................4
1.5 Research Objectives.........................................................................................................5
1.6 Research Questions..........................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................6
2.1 Role of digital marketing on consumer behaviour...........................................................6
2.2 Importance of online advertisement for attract large number of customers.....................7
2.3 Relationship between digital marketing and purchasing behaviour of customers..........8
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................10
3.1 Type of Investigation......................................................................................................10
3.2 Research Design.............................................................................................................10
3.3 Research Philosophy......................................................................................................10
3.4 Research approach..........................................................................................................11
3.5 Data sampling.................................................................................................................11
3.6 Ethical consideration......................................................................................................11
REFERENCES..............................................................................................................................13

Topic: Effect of digital marketing and online advertising on the consumer / buyer behaviour.
CHAPTER 1: INTRODUCTION
1.1 Overview of research
Marketing refers to an action of promoting as well as selling of services or goods
involving the marketing investigation and advertisement. It is a procedure by which services and
products are moved from the conception to consumers. It consists coordination of the four
different components like product, price, place and promotion (Stephen and Galak, 2012).
Digital marketing refers to purchasing and selling services, information and products through
internet or computer network. Electronic commerce and internet technologies have transformed
the whole economy, along with influencing revenue streams, supply chains, consumer base etc.
In this present era, there are several kinds of changes are to be seen by use of internal
technologies such as online purchasing, easy payment mode etc. which have redefined the
manner through which customer avail products and services. In context to digital marketing, it is
marketing of goods by using the digital channels in order to reach at large number of consumers.
On the other hand, online advertising is marketing strategy that includes use of Internet as
medium to target the consumers and attempt to fulfil their requirement. It is form of the
promotion with an appropriate usage of internet. With the help of internet, organisation can
target the large number of consumers towards itself and enhance its sales by providing them
better quality of services. It is a responsibility of company to determine needs and demands of
consumers before manufacturing of better quality of products which can be carried out through
conducting online survey and research.
In this present time period, consumers want high quality of services as well as goods at
reasonable cost. Online advertisement is a kind of marketing related messages which shows
information about the products and services on Internet. The various tools which can be
undertaken by an organisation to promote its good and services can be carried out through search
engine optimisation, email, social media and internet marketing. In context to this, . The quality
of products and its pricing influences the buying behaviour of a prospect. If the price and quality
of products and services will be justified, it will lead to persuade customers into availing
offerings of the company (Yadav and Pavlou, 2014). The dissatisfied customers will lead to
decline in sales and will negatively influence brand image of the company therefore it is
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essential for a business to undertaken marketing strategies and approaches which attempts to
fulfil requirement of customers.
1.2 Background of research
Digital marketing and online advertisement both are the necessary concept of marketing
as they both help in attract people towards the firm that too with minimal expenditure. Online
advertisement is kind of the mass communication that depends on traditional advertising form.
Digital marketing is helpful in promote the brand by using the different forms of the digital
media and interest based channels. Generally, online advertisement is related to give
advertisement to online users via email, internet, smart phones, websites and many others. It is
less expensive and helpful in reach at large number of buyers with minimal efforts (Kireyev,
Pauwels and Gupta, 2016). The online advertisement helps in generate the more profit and
maintain reputation of company by making people aware about the products and services of the
company in an inexpensive manner. Marks & Spencer is British Multinational retail company
and specialised in selling of home products, luxury food items, clothing etc. Its main focus focus
on satisfy the demands as well as requirements of consumers through their quality oriented
offerings. This organisation was established in year 1884 and presently it has total 979 stores
across United Kingdom involving 615 that sell only the food items. Digital marketing is helpful
in make the life of people more easier.
With the help of using digital marketing, consumers can buy products and services in an
convenient manner. There traditional buying pattern have been avoided by consumers as it
requires more time and efforts when compared with sources of E-commerce. Before producing
any kind of products, marketing deportment of Marks & Spencer determine the needs and tastes
of consumers. The taste and preference of consumers are changing with in short period of time
therefore it is essential for Marks & Spencer to opt for innovation in its existing products so
that requirement of target segment are fulfilled. Changing behaviour of buyers can daunting for
the brands and arise the more difficulties for an instance enhance negative publicity (Hoban and
Bucklin, 2015). Rapid development of information technology has increase significance of the
online advertisement. In context to this, online advertisement is helpful in develop as well as
capture attention of the new and traditional marketers. Through digital marketing, customers can
compare the product and cost from one company to another on different e-commerce
applications .Marks & Spencer spend more money on the advertisement to maintain its market
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share and increase the demand of its products at market place. It is helpful in develop the positive
impact on mind of consumers as they are intimated on regular basis through consideration of
internet platforms.
Digital marketing is marketing of services or goods by using the digital technologies on
Internet. It extends beyond the internet marketing to involve channels which do not need use of
internet. It consists mobile phones, display marketing, social media marketing and some other
form of the digital media. Firms use this kind of marketing to reach large number of customers.
Its main aim is to promote the brands by different forms of the digital media. It is helpful in
target particular segment of consumer base (Xiang, Magnini and Fesenmaier, 2015). In this,
digital marketing is helpful in encompasses marketing effort that use Internet or electronic
device. With the help of use of electronic devices, company promote its services and products.
On the other hand, online advertising is form marketing as well as advertising that uses internet
to deliver the promotional marketing related messaged to customers. It consists email
marketing,social media marketing, search engine marketing etc. Its main benefit is to do quick
promotion of goods without any geographical boundary limits. The digital marketing and online
advertisement both are helpful in aware people about products and services of company. By
using these methods, firm can attract large number of consumers towards it.
Marks & Spencer is British multinational retailer and its headquarter is on City of
Westminster, London. This company was established in year 1884 by Thomas Spencer and
Michael Marks. It is specialised in selling of home products, luxury food items and clothing. It
has around 979 stores across United Kingdom consisting 615 which only sell the food items.
Marks & Spencer sell its goods via its outlets which selected in order to attract more consumers
and gain more visibility of brand (.Hoban and Bucklin, 2015). It launched its online shopping
store so that consumers can but and also get facility of home delivery.
The market situation of Marks & Spencer company is good and it serve its services
around 32 million consumers every year. It is a well known brand at market place and it has
large number of loyal consumers. It provide its products such as food items and clothing online.
Marks & Spencer faces the great competition as internet has made this easier than
purchase products online. Through online, customers can compare the costs as well as access
fashion in all over world. It has 300 high street stores which sells food, clothing and homeware.
In this, radical plan will cut amount of the high street floor space that devoted to homewares and
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clothing through quarter. Minimum investment in small and local outlets has left to look dated
and shabby but it is difficult for large stores to navigate. There has been done more
improvements on stores (Yadav and Pavlou, 2014). The food of Marks & Spencer is expensive
and competitors of this company takes its benefit by providing their food products on minimum
cost. These are some of the main issues which Marks & Spencer faced.
1.3 Rationale of Research
The main reason for undertaking this present dissertation is to identify impact of online
advertisement and digital marketing on purchasing behaviour of consumers. It has been
identified that promoting on digital channels have been helpful in catching attention of
consumers and ultimately leading to higher sales for business. In order to this, purchasing
behaviours of customers are influenced through icon, cost and quality of products or services
which are developed through advertisers. In this present time, large number of population are
connect on the different tools of social media (Chaffey and Smith, 2013). It is an effective
medium to connect with the many people in minimum time period. It will be helpful in enhance
reputation of company at competitive market. Marks & Spencer innovate its products on the
basis of current trends at market place. Digital marketing have brought the better changes in
which the company can easily aware consumers about the services and products. At market
place, there are many different factors which impact on buying behaviour of consumers and
these all factors invariably impact on the demands and requirements of consumers in a
significant manner. Better advertisement is helpful in enhancing sales volume of company and
achieving loyal customers towards the business. With increasing use of internet people tend use
it for the purpose of shopping of products as it involves less efforts and time friendly as well.
There are large number of people who purchase the products and services with the help of
different e-commerce websites. . The demand of every consumers are different from the each
other. So, it is necessary for firm to focus on their preferences and demands. It will be helpful in
develop the positive impact on their buying behaviour in a significant manner.
1.4 Research Aim
The aim of this investigation is “To analyse effect of digital marketing and online
advertising on the consumer / buyer behaviour. ”A Case Study on Marks & Spencer.
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1.5 Research Objectives
 To investigate about role of digital marketing on consumer behaviour.
 To analyse importance of online advertisement for attract large number of consumers.
 To study about relationship between buying behaviour and digital marketing.
1.6 Research Questions
 What is role of digital marketing on consumer behaviour?
 What is importance of online advertisement for attract large number of customers?
 What is relationship between buying behaviour and digital marketing?
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CHAPTER 2: LITERATURE REVIEW
It is an essential part of the research project and under this an investigator uses the view
points, thoughts and opinions of different authors and writers. Under this, secondary data is used
through a researcher in order to finish research in proper and significant manner.
2.1 Role of digital marketing on consumer behaviour
Firms uses the effective tools and techniques to market their services as well as products
directly to consumers and also track change in their behaviour. Digital marketing holds the better
role for business firms and consumers to selling their services and goods (Impact of digital
marketing on consumer behaviour, 2018). Electronic channels are helpful in identifying the
views and opinions of prospects relating to services offered by the company and modify
accordingly. It is helpful in attract the large number of consumers and also develop the strong
relationship with them. In this modern era, digital marketing is widely used as a marketing tool
and it is regarded as most inexpensive tool to aware people about the products of company. It
provide the cost as well as some other advantages to company. Buying behaviour of consumers
is sum total of preferences, decisions, attitudes and intention of consumers related to their
behaviour at market place at the time of buying services and products. On the basis of view point
of Jin and Phua (2014), it has been stated that Digital technology is helpful in providing many
opportunities to business to expand their operations. Through using the internet,, consumers can
purchase products on the basis of their demands as well as preferences. It is a responsibility of
an organisation to first identify needs of consumers and then produce new or make some
changes in existing products so as to raise sales volume of the company. The behaviour of
customers classified as decisions as well as actions which impact on the behaviour of customers
towards purchasing of goods. At market place, there are more loyal consumers of Marks &
Spencer but it need to be more focus on its market segmentation and also target the other
markets.
According to opinion of Xiang, Magnini and Fesenmaier (2015), Concept of marketing
has undergone with a wide change over the last few years. Internet is known as one of the factor
that largely affect the business activities of various industries specially fashion industry. This is
an effective method to as this help in reach more number of customers. Under concept of digital
marketing, buying and selling of information, goods, services via internet or computers take
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place. Internet and different technologies are transforming the business models, supply chains,
customers base and revenues. Customers who prefer online shopping are benefited with flawless
payment and timely delivery. Now online retailers are pushing various categories such as white
goods and electronics. Impact on retailing has been profound as a result that various businesses
are changing the channels they utilise to promote or sell their services. With concept of digital
marketing M&S can firstly promote its product on large level and aware large number of
consumers about its offerings. Secondly company can generate large number of profits and can
capture a larger market share. One of the main benefit of digital marketing is that it provides an
opportunity to consumer to collect features and functions of product before make a purchase
decision and this results in customer satisfaction (Strauss and Frost, 2016). Further, with digital
marketing M&S can carry out its marketing activities with minimum funds and can influence
large number of customers to buy its product.
2.2 Importance of online advertisement for attract large number of customers
On the basis of opinion of Hudson and Thal, (2013), it has been stated that Online
advertisement refers to the use of emails, websites and some of the other online venues as the
medium of advertisement. It is helpful in providing the long term benefits to company by
increasing revenue and availing loyal customer base. It helps in giving the advertisement to
consumers about services as well as products of an organisation in an effective and better
manner. It is a better marketing strategy that consists use of Internet as an effective medium to
achieve the website traffic and also target the prospective consumer segment. It is geared
towards explaining the markets by useful along with the unique applications. With the help of
online advertisement, company can target the large number of consumers and also attract them
towards the services as well as products of company. It will aid in increasing productivity of
company and also compete with its strong competitors at the market place. There are many
organisations which uses the different online advertisement such as social media, emails, through
smart phones etc. In this context, managers of IT and marketing departments use various
methods like Blogging, Content Marketing, Social media and more. Blogging is considered as
one of the key primary factors which drives traffic on internet sites. Along with this, it also helps
in position brand value of company as market leader in particular marketplace by developing
better customer relationship. Other than this, content marketing refers as heart of digital
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marketing campaigning which helps in connecting customers with brand of a firm. Using this
concept helps an organisation in improving brand reputation through building trust among users.
As per views of Di Pietro, Di Virgilio and Pantano (2012), It is considered as one of the
main advantage as a firm cannot get retention of customers without building trust . Thus, through
this process of digital marketing, M&S can establish positive image of its business in minds of
customers in an effective manner. Along with this, it also helps in improving conversion with
users by creating awareness to consumers about business. But the main focus of Marks &
Spencer is on social media marketing because people use more connected with it. As this
process provides various benefits as well as opportunities to gain higher attention of customers
towards products. It includes increasing brand awareness, improving search engine rankings,
higher conversation rates and more. Social media is also a cost-efficient strategy of digital
marketing which increases visibility of business among customers. With implementation of this
strategy, M&S can engage audience of marketplace with its business which will help in
increasing brand recognition among them also. In terms of opportunity, social media give chance
to this company to revert to customers about their feedback. As it has observed that people used
to remain consistent with those companies who quickly give response to their problems and
resolve the same on time. This would help in improving and increasing sales performance of
M&S also by which profitability can be earned in fast manner.
2.3 Relationship between digital marketing and purchasing behaviour of customers
According to Jahn and Kunz (2012), it has interpreted that digital marketing and internet
play a main role in buying behaviour of people. As accessibility of internet and less transactional
costs give rise to bargaining power among customers with the help of digitalisation. If an
organisation adopts digital marketing techniques for promoting its business then it will help in
increasing awareness among customers about products or services. People use internet surfing
for online purchasing by identifying cost of products of different companies. They always want
to get goods from online purchasing on affordable rates and of best quality. If expectation of
them will not completed in desired manner then it will create negative image in their minds.
Furthermore, by words of mouth of them or with other sources, negative publicity of such
companies are spread in vast manner which will affect brand value. Thus, it is a responsibility of
marketers to give quality assurance of products to customers. Along with this, with different
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views of customers who had use the same, they can set mind if purchasing such goods online
will fulfil their desires.
On the basis of viewpoint of Strauss and Frost (2016), The biggest change in purchasing
behaviour of customers is generated due to high level of expectation of them. As when they put
an order on website of a company or other media, they expect personalised and consistent
experience from a particular brand. Due to modernisation and digital technologies, now
customers become variety seekers rather than being loyal towards a firm. Desires of people are
increasing at high rate and always want to get something new on affordable prices which fulfil
satisfaction in a great manner. Thus, in this regard, managers of M&S are required to serve
products or services to online consumers with a type of built-in offer. Along with this, there are
many tools and techniques available through which M&S can deliver good experience to
customers as per want like social intelligence, machine translational and consumer analytics.
As per opinion of Hudson and Thal, (2013), Digital marketing creates a large impact on
perception of customers which affect buying behaviour of them also. Due to digital marketing,
customers are imitated on the regular basis with the promotions and offers so as to attract them
towards the business. The provision of products which meets the requirement of consumers will
be helpful in assuring that they are retained with the business for longer duration. Along with
this, when expectation of people are not fulfilled in desired manner then they used to give their
negative feedback of such organisations on websites. It will affect purchasing behaviour of other
customers by reading reviews of them in a large manner. Therefore, to cope up from this and
give positive image of business in mind of online consumers, it is necessary for IT department of
M&S to keep an eye on content of social media about business. The internet tools have been
known to study buying pattern of visitors which helps business in enhancing the sales volume as
they are communicated on the basis of their taste and preferences. Managers should make sure
that only positive information will posted on websites and other social media of digital marketing
techniques. It will help in attracting online customers towards products or services.
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CHAPTER 3: RESEARCH METHODOLOGY
This part of research includes various techniques and procedures through data on
particular topic can be determined and analysed in a proper way. It helpful an examiner in
examining reliability as well as validity of a research as per objectives. Thus, it is an essential
part of research which helps in controlling all situations of project. In this context, project
makers use qualitative and quantitative methods of research which include survey research,
experimentation, secondary data and view points of users.
3.1 Type of Investigation
Investigation is taken as most essential part of a research methodology in which project is
divided into two main aspects that are qualitative and quantitative. In this process, quantitative
method is considered as systematic part of research which includes mathematical and statistical
techniques of data. Under this process, information is measured in numerical manner only. While
qualitative method of investigation includes scientific observation technique for collecting
theoretical or non- numerical form of data. In the present context, researcher use qualitative
method of investigation for examining data in an appropriate manner.
3.2 Research Design
This part of research methodology refers as blueprint of whole investigation process
which helps project team of a company in getting proper direction for conducting further
activities of research in a proper manner. Basically, investigation team use three main types of
research designs that are descriptive, experimental and exploratory. In this era, experimental
research design mostly use to evaluate real facts and includes natural science therefore, it fails in
examining behaviour of customers. While descriptive research design helps in evaluating
variability or existing phenomenon status of project. Thus, in this design, data collection is
considered as more observational. Other than this, exploratory research design is used when
collection of a certain data seems to be difficult. In context with present research, descriptive
research design has been which provides information on the subject in a theoretical and detailed
manner.
3.3 Research Philosophy
It is considered as a belief related to the way through which data and particular
information is collected and analysed. It encompasses with two main aspects that are positivism
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and interpretivism, where both approaches are useful in generating higher outcomes of an
investigation. Under this, positivism approach philosophy is related with manipulation of reality
and described with different viewpoint. While interpretivism concern about human's nature and
their characteristics. Therefore, among both approaches, researchers of present project has used
Interpretivism research philosophy as it useful in accumulating accurate data.
3.4 Research approach
It refers to a plan under which major steps are included like data collection method,
interpretation as well as analysis of the same. It constitutes two main aspects that are inductive
and deductive. Inductive approach is considered as method of reasoning under which premises
are taken as supplying evidences for generating new theory from data. While deductive is a
testing theory which begins with hypothesis. In this regard for specific investigation, project
team has taken inductive approach which is useful in generating better information.
3.5 Data sampling
It is a statistical analysis tool which helps in selecting, manipulating and analysing a large
amount of data for examining trends and patterns of the the same. In data sampling procedure,
researcher uses random sampling technique for selecting participants. It will help in collecting
and evaluating accurate amount of data as well as reliable information in an appropriate manner.
In this regard, present research has included a sample of 40 respondents.
3.6 Ethical consideration
It is considered as most essential part of research methodology which helps in reducing
chance of occurrence of conflicts among team members as well as assisting them to carry out
activities of project in ethical manner. It also helps in determining variations among acceptable
and non-acceptable behaviour of users who take participate in interview method of research.
Along with this, it is a major responsibility of investigators to ensure that ethical rules and
regulation related to society must be followed while conducting activities of project. In this
regard, they are also responsible for keeping personal information of respondents in secure and
confidential manner. Moreover, researchers should maintain the privacy and confidentiality of
users' responses. It will help in maintaining trustworthy relationship with participants as well as
responses of them not be divulged with others. In addition to this, falsifying and
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misrepresentation of data which may change complete scenario should be avoided by promoting
authenticity. They should maintain quality, integrity as well as accountability of research also.
Reason for selection of Project:
For investigating a report, researchers has chosen current topic i.e. Effect of digital
technology on behaviour of customer. The reason behind this is to analyse how buying behaviour
of users affected due to digitalisation. It will help in concluding out whether a company has to
transform digitalisation in business or not. Another reason behind this to aware people about the
existing products as well as services, company can give online advertisement on different tools
of social media such as Instagram, Facebook etc.
Key questions attempted in this project:
In order to evaluate the effect of digital technology on buying behaviour of customers,
key questions of present project are- role of digital marketing on consumer behaviour;
importance of online advertisement to attract large number of users and relationship between
buying behaviour and digital marketing. All these questions are investigated under literature
review part of project by secondary methodologies.
Research Method
For investigation, researchers of present project use secondary methodologies. For this
process, books, journals and other published data on internet has used. Under this different views
of many authors and writers are evaluated.
Research Paradigm
It is a set of common opinion and agreement shared between project makers in order to
analyse about how problems can be identified and addressed as well. It includes three aspects
that are- Ontology, Epistemology and Methodology. Under this process, all these aspects creates
a view of questions of a research have been answered and which methodologies are used to
discover the same. Moreover, three most approaches of research paradigm used to investigate a
project are – Positivists, Constructivists and Pragmatists. Under these approaches, positivism
include experimental and survey research methods and quantitative techniques for investigation.
While constructivists or interpretive includes heuristic enquiry and qualitative technique.
Whereas pragmatism includes mixed methods and design-based researcher as well as
combination of both qualitative and quantitative techniques. Therefore, in present research,
project makers have used constructivist approach for investigation.
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REFERENCES
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dynamics in online advertising. International Journal of Research in Marketing. 33(3).
pp.475-490.
Hoban, P. R. and Bucklin, R. E., 2015. Effects of internet display advertising in the purchase
funnel: Model-based insights from a randomized field experiment. Journal of Marketing
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Strauss, J. and Frost, R. D., 2016. E-marketing: Instructor's Review Copy. Routledge.
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pp.156-160.
Di Pietro, L., Di Virgilio, F. and Pantano, E., 2012. Social network for the choice of tourist
destination: Attitude and behavioural intention. Journal of Hospitality and Tourism
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Online
Impact of digital marketing on consumer behaviour, 2018. Available Through
<http://www.digitaltechnology.institute/impact-of-digital-marketing-on-consumer-
behaviour/>.
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