Impact of Online Marketing on Consumer Behaviour: A Literature Review

This literature review explores the impact of online marketing on consumer behaviour, including the definition of online marketing, elements of online shopping, analysing consumer behaviour, and the relationship between trust, security, experience and online shopping behaviour.

Running head: LITERATURE REVIEW
Literature Review
Name of the student:
Name of the University:
Author note:

1LITERATURE REVIEW
Table of Contents
Chapter 2- Literature Review.....................................................................................................2
2.1 Introduction:.....................................................................................................................2
2.2 Definition of online marketing:........................................................................................3
2.2.1 Elements of online shopping:....................................................................................6
2.3 Analysing consumer behaviour:.......................................................................................7
2.4 Impact of online marketing on consumer behaviour:....................................................11
2.4.1 Relationship of trust with online shopping behaviour............................................11
2.4.2 Relationship of security with online shopping behaviour.......................................14
2.4.3 Relationship of experience with online shopping behaviour..................................15
2.5 Conceptual framework:..................................................................................................17
2.8 Literature gap:................................................................................................................17
2.9 Summary:.......................................................................................................................18
Reference List:.........................................................................................................................19

2LITERATURE REVIEW
Chapter 2- Literature Review
2.1 Introduction:
Prompt emergence of digital technology has revolutionised the way of conducting
business in a timely and cost effective manner. The central motive of the companies behind
executing online marketing strategy is to keep the customers informed about the products or
services. Leung et al. (2015) said that with the assistance of online marketing strategy, the
organisations are able to satisfy their goals and objectives related to marketing.
As the rate of accessing internet is increasing in rapid manner, the volume of business
transaction is also accelerating drastically. Researchers are showing that, there are more than
30 customers across the world, who are using internet for buying products or services. The
rate of using internet for online shopping is strikingly high. There are more than 40%
customers across the nation, who shop regularly through internet (Statista. 2018). During
second quarter of 2018, the rate of online shopping has been increased by 2.63% (Statista.
2018). These statistics shows the extent to which the notion of e-commerce is developing
promptly. However, this should also be noted that online shopping depends on certain factors
that affect consumer behaviour for an online purchase. These factors are trust, security and
experience. Trust whether or not has any positive relationship with online shopping will be
find in the research work. Similarly, security features are important to keep people coming to
the website. If an e-commerce site is not secured in respect to personal and financial
information customers may like staying away from it. Consumer experience of online
shopping can also have an impact on consumer behaviour for online shopping. It depends on
word of mouth publicity for a particular e-commerce site (Fang et al. 2016).
By way of a large base of customers are moving towards internet, the online
marketing strategy is helping the companies to drag the attention of a strong base of potential

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customers (Goworek et al. 2015). This chapter of the dissertation puts forth the discussion of
the online marketing and consumer behaviour. The impact of online marketing on the
consumer behaviour and how the fashion industry is being largely influenced by the online
marketing has also been highlighted in the present.
2.2 Definition of online marketing:
Online marketing is regarded as one of the most effective tools, used by the entities in
order to promote products through internet. Proficient online marketing campaign intends to
drag the attention of wide range of customers. Online marketing, in its simplest form is
considered as the most important mediums, through which the organisations maintain healthy
relationship with the customers. According to Li and Kannan (2014), this paves the way to
promote sustainable growth of business. Establishing an effective brand name has become the
matter of utmost importance for the companies as the business environment has become
fiercely competitive. Thus, comprehensive marketing strategy is highly needed for attaining
success from the business. Deka (2017) commented that with the assistance of online
marketing strategy, the companies are strengthening their reputation.
Online marketing, in its simplest form is also defined as internet marketing, which is
an effective method of market exposure among potential customers. Sozinova and Fokina
(2015) highlighted the fact that online marketing helps in promoting the business in such a
manner which supports in increasing the reputation of a company by accelerating its
availability in online. This is basically the activity of holding the web-based channels and
thus keeping the customers informed about the brand, products or services of a company (Xu
et al. 2017).
There are multiple online marketing practices followed by entities with the intension
of maximising the statistics of profit by attracting a large base of customers. Search Engine

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Optimization (SEO) is the most effective online marketing strategy, the companies are
practicing in order to strengthen their availability in internet. This is the way of amplifying
the number of visitors in a particular website (Baye, De los Santos and Wildenbeest 2016).
Ryan (2016) observed that the fundamental aim behind implementing search engine
optimisation is to ensure that a website of a company appears at the high position in the entire
list of outcomes, provided by the internet. With the assistance of this way, the visibility of a
particular website can be enhanced.
The marketing department takes the responsibility of operating the SEO in a right way
of drag the attention of customers in a proper manner. One of the most durable advantage of
SEO marketing is that it supports the companies to be exposed to people and keep them
informed. However, Leeflang et al. (2014) argued by holding the view by that SEO
marketing is quite time consuming process. The noticeable shortcoming of SEO is that
sometimes, it takes a lot of time for a concrete outcome.
Speed is a major aspect in the volatile business environment. As a part of the online
marketing strategy, Pay per Click (PPC) is the speediest way of promoting products or
services. This strategy supports the companies to drag the attention of potential buyers in an
effective manner. The major benefit of this PPC marketing is that it enables the companies to
inform the customers regarding the products in a time-effective manner (Kapoor, Dwivedi
and Piercy 2016). This is the way, through which the companies also understand the
requirements of niche market and work accordingly in order to keep the customers loyal and
satisfied. Still, Tiago and Veríssimo (2014) contended that the PPC marketing is a costly
process that can create difficulty among the companies to keep their marketing activity within
budget.

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In the era of digital technology, people are spending much times in social media. The
marketers are grabbing the opportunity of this trend of using social media to promote
business. As discussed by Kannan (2017) social media marketing is a major type of social
media marketing, being used by the companies to access the social media platform and catch
the attention of customers. Rapid development of social media has revolutionised the way,
the companies interact with their potential customers. Researchers are showing that there are
more than 300 million active users of face book (McDaniel, Drouin and Cravens 2017). The
marketers are taking the opportunity and grabbing the attention of customers by creating page
on face book. On the contrary, Karjaluoto et al. (2015) stressed on the view that negative
feedback from the customers is the most alarming challenge of social media marketing.
Sometimes, the unhappy customers post negative comment on the official face book page of
an organisation. Such negative feedback generate negative vibe among the customers, which
hampers desired prospect of business.
Online marketing is the most significant way of keeping the customers in a single
platform. Unlike traditional marketing, online marketing is a cheap process to promote the
business and thus attain desired outcome. Internet marketing is a systematic process which
requires less time in comparison with traditional marketing (Solomon et al. 2014). Marketing
business through internet serves the organisations with the ability to access the most potential
buyers. There are billions of people across the globe, who are using internet and are
becoming highly aware regarding this. Thus internet marketing can help the companies to
market their business among these large number of customers. Contrarily, Xiang et al. (2015)
stated that it is true that internet marketing provide the companies with a wide reach, but the
cost of launching a website is quite a costly process as it requires money for hardware,
software along with maintenance.

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In the fast-moving business environment, internet is the only medium to cross the
regional boundaries. Therefore, advertising business through internet is the fundamental way
of reaching the global customers In addition to that, the process of internet marketing too
much costly process which paves the way for small and medium business organisations to
promote their business. However, Claiborne and Sirgy (2015), opposed by saying that the
rules and regulations related to trade through internet changes drastically. Therefore, constant
attention is very much needed in order to deal with online marketing strategy.
Still, Mandel et al. (2017), internet allows the companies to be connected with the
customers. This is the mode of providing necessary information to the customers and thereby
influencing their purchasing decision.
2.2.1 Elements of online shopping:
Trust:
According to Bilgihan (2016), Gen Y or Millennials are five times faster than older
generations in navigating website information. They are also most emotional and least loyal
to online services as compared to older generations. In the finding section of this article, the
author identifies that trust is the most significant antecedent of e-loyalty in online shopping
for millennials. In the opinion of Agag and El-Masry (2017), trust influences consumers’
attitude, risk being perceived and intention to purchase travel package online.
Security:
As opined by Benson et al. (2015), security features are less cared about while using
social sites for narrow-purposes. Despite knowing that online shopping has some security
issues and can cause loss of money and important data people still use it for their various
types of online transactions.

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Experience:
As observed by Bilgihan, Kandampully & Zhang (2016), online customer experience
impacts brand engagement, repeat purchase and positive word of mouth (WOM). This means
if online experience is positive the customer will consider a revisit to the site. The particular
customer will also do a positive word of mouth (WOM) for the product. The level of brand
engagement for the particular customer will also increase.
2.3 Analysing consumer behaviour:
Consumer behaviour is defined as the study, conducted by the organisations. This is
the way of assessing the buying pattern of customers which is the key of exploring their
needs and requirements. Consumer behaviour is basically the activity of the customers in the
market place and the fundamental motifs behind those activities. It is the general tendency
among the consumers to explore the factors that urge the customers to buy a product. By
identifying these factors, the marketers become able to figure out the products that are high in
demand in the market (Bradford et al. 2017). By studying consumer behaviour, the marketers
can also be able to explore the process of presenting the products to customers with utmost
efficiency. Consumer behaviour, in its simplest form is regarded as the physical activity
along with the decision process, which the customers initiates while utilising or disposing
certain goods or services. In-depth study of consumer behaviour supports the marketers to
understand the buying behaviour of customers (Xu et al. 2017).
In addition to that, Bamossy and Solomon (2016) stated that in-depth study of
consumer behaviour also supports in predicting the future of a business. There are multiple
factors which can have immense effect on consumer behaviour. The very trend of
advertisement plays a significant role in the way of impacting the buying decision of
customers. There lies the significance of proactive marketing campaign as it helps in

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accelerating the statistics of market share by influencing the purchasing pattern of customers.
Godey et al. (2016) commented that in the intense competitive business environment, the
corporate entities are stressing on the significance of regular marketing campaign as the mode
of prompting the buying pattern of customers. The economic condition in the market is a
significant factors in terms of inclining the purchasing power of customers. Positive
economic environment in the market also helps in making the consumers happy and
confident in order to purchase products as per their own choice (Dahnil et al. 2014).
Consumer behaviour is largely influenced by personal choice, likes, dislikes, values
and priorities of the customers. The dynamic industries such as fashion, food, personal care,
the personal choice of the customers is an important factor, influencing their purchasing
decision. Horner and Swarbrooke (2016) highlighted that the purchasing capability of the
customers is an important factor in the way of influencing the purchasing pattern of
customers. It is the trend among the customers to evaluate their own financial condition
before making any buying decision. Culture of the customers is an important factor in
determining their purchasing decision (Joshi and Rahman 2015). The trend in the market also
plays a significant role in the way of promoting purchasing decision of consumers.
Rapid development of internet has revolutionised the way of conducting marketing
activities and thus inclining the behaviour of customers. Hawkins Stern’s Impulse Buying
is one of the major ideologies of consumer behaviour which stresses on impulsive buying.
According to Stern, the impulsive attitude of the customers plays a critical role in the way of
influencing their rational purchasing decision (Taylor 2015).

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Figure 1: Hawkins Stern model of Impulse Buying
(Source: Taylor 2015)
The impulsive behaviour of the customers are generally driven by multiple external
stimuli such as offer or discount on a product, launching of a new produce along with the
latest trend in the market. Pappas (2016) suggested that there are different categories of
impulsive buying. Initially, purely impulsive purchases is very much important to impact
buying behaviour of customers. Impulses is also a significant trend which can be seen among
the customers. Any kind of offer or discount on a certain products leads the customers to
initiate impulsive purchasing. This impulsive purchasing provides the marketers with
immense opportunity to drag the attention of customers. The factors such as every aspect of
the goods, packaging style, the way of displaying the products in the store supports in
attracting and retaining a strong base of customer and this increasing statistics of profit. As
commented by Cohen et al. (2014) Motivation-Need is another vital ideology related to
consumer behaviour. Therefore, effective marketing is highly needed in order to keep the
customers informed about the services, they are offering. This can act as a motivation for the
consumers to form their buying decision.
The characteristics of consumers is a necessary factor in the way of inclining their
purchasing decision. As per the Black Box Theory of consumer behaviour, the stimuli
provided by the marketers to the customers are highly important in the way of influencing the

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purchasing power of customers. Cantallops and Salvi (2014) perceived that recognition of
problem is one of the most effective characteristic of customers. It is the trend among the
customers to analyse the fundamental requirement of a product and form their buying
decision in accordance with their needs.
Figure 2: Black Model of Consumer Behaviour
(Source: Parson et al. 2017)
Searching relevant product related information is another vital characteristic of
customers. They are highly intended towards looking for more information in the internet in
order to check the durability of the products can satisfy their needs and requirements. They
made in-depth research on a produce in internet over buying it. According to Gao and Bai
(2014) evaluation of alternative products is another vital trend that can be perceived among
the customers. They generally multiple product and compare them on the basis of style,
feature and design. The purchasing decision of the customers is largely dependent on their
evaluation of products and the information related to it. The Black Box model states the fact
that response of the buyers plays a significant role in the way of initiating the decision
making process (Bamossy and Solomon 2016).
In the customer-oriented market place, studying consumer behaviour is highly
required in terms of understanding the requirements of the customers. Schivinski and

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Dabrowski (2016) discoursed that the contemporary marketing ideology is highly concerned
with the customers. Therefore, studying consumer behaviour is very much important in order
to produce the products or services in such a manner which can help to satisfy the
requirement of customers. In addition to that, in-depth study of consumer behaviour also
supports in implementing the product differentiation strategy in a proper way in accordance
with the age, gender and socio-economic background of the consumers. At the same time,
research on the consumer behaviour also helps to execute the market segmentation strategy
by dividing a potential market into different sub-markets (Dehghani and Tumer 2015).
Consumer behaviour plays a significant role in the way of exploring the effective
distribution channels. Through this way, the marketers explore the potential distribution
channels by analysing the purchasing power along with the position of the customers. From
the discussion of Mahmood and Kess (2016) it can be said that with the assistance of
consumer behaviour, the marketers provide the customers with maximum convenience along
with higher range of satisfaction. Executing the promotional technique in a proper way is
highly influenced by the study of consumer behaviour. The buying behaviour of customers
shades light on the psychological factors, which can have firm influence on framing their
buying behaviour. Proper study of consumer behaviour serves the marketers with the ability
to develop new products based on the requirements of customers (Taylor 2015).
2.4 Impact of online marketing on consumer behaviour:
2.4.1 Relationship of trust with online shopping behaviour
The marketing paradigm has undergone a massive change in recent times, due to
prompt emergence of technology. As stated by Caro and Martínez-de-Albéniz (2015) the
consumers in recent times have become highly engaged with internet. Online shopping has
become a new trend among the customers. Therefore, digital marketing is playing a

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significant role in terms of dragging the interest of customers. By implementing digital
marketing strategy, the marketers are allowing the customers to check the durability of
products by perceiving them properly. This is the way, through which they are comparing one
brand with that of other and thus form their buying decision (Chan et al. 2017).
Figure 3: Kotler's Framework related to the factors influence online purchasing behaviour
(Source: Armstrong et al. 2014)
According to Kotler’s framework, there are certain factors, which influence online
purchasing attitude of the customers. Differed demographics along with the cultural behavior
can have a firm impact on framing their purchasing decision. For instance, the young
generation are more inclined towards purchasing products online. There is a comprehensive
process, which every buyers undergo in order to frame their buying decision. There lies the
significance of appropriate branding, which is the critical factor for generating interest among
the customers towards a product (Opreana and Vinerean 2015). Web experience is another

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imperative factor towards framing purchasing decision. Thus, the advertisement of the
products must be highly lucrative for generating interest among the customers.
It is the general trend among the customers to receive fast responses from the
marketers. The platforms such as twitter, Facebook, quora are being largely used by the
customers in order to share their own perception towards a product. Any kind of negative
comment towards a product can generate negative vive among the customers. As the
technology is developing in an incredible manner, it is important to keep the customers
updated regarding the products or services. Through internet marketing, the marketers
provides the consumers with relevant and newsworthy information. Well-informed customers
have the potential to form their buying decision in a timely manner (Li et al. 2014).
Internet marketing serves the companies with the ability to maximise the value of
customers by providing them with quick services. Through internet marketing, the brand
awareness among the customers can be generated which is the key of strengthening the
purchasing behaviour of the customers. By engaging more visitors, the organisations become
able to accelerate the rate of visitors in their website (Dilham et al. 2018). Increases access
and the visibility in website paves the way of promoting sustainable growth of business.
According to Dhanapal, Vashu and Subramaniam (2015), there are some factors that
impact trust for online shopping. Online fraud of personal and financial information is one
of these factors. Online fraud is one of the reasons why there are many people reluctant to
online purchase. There is no personal interaction available for customers on many sites that
they use. It creates doubts in their mind about whether any fraud case will be taken care by
the concerned department. Therefore, there is a high need to establish trust in online
shopping.

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Bilgihan, Kandampully and Zhang (2016) supported the views as presented by
Dhanapal, Vashu and Subramaniam (2015) by saying that cases of online fraudulent affect
trust for online shopping. People generally have perceptions that online transactions are not
safe. Personal information can be hacked or used for wrong purposes. Interestingly, people do
not even know where and how their data are used. This may be the reason why many people
still prefer shopping from brick and mortar format of stores.
2.4.2 Relationship of security with online shopping behaviour
According to Abomhara (2015), a secured website attracts more visits than those are
prone to treats. Website security can be affected in numerous ways. However, the most
threatening of ways is the one, which is done intentionally. Cyber security threats are done
intentionally. Some of the most popular cyber security threats are phishing attacks, credit
card fraud, hacking, unprotected online service and data errors.
Internet marketing is one of the most significant ways, through which the
organisations leads the customers towards their products or services in an ethical manner.
Successful implementation of internet marketing strategy, enables the customers to be well-
informed regarding their desired products or services. Escobar-Rodríguez and Bonsón-
Fernández (2017) highlighted that by getting relevant information, the customers becomes
able to form their buying decision in a timely and cost effective manner. One of the most
important impact of internet on consumer behaviour is that, this method supports the
companies to offer the customers with a great variety of products and thus allow them to
select the most relevant products in accordance with their choice along with the durability of
the product. Such availability of products can have a firm impact on promoting the buying
attitude among the customers (Nadeem et al. 2015).

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Consistent access is one of the greatest impact of online marketing on consumer
behaviour. Digital marketing has created that provision for the customers, through which
customers can access the website of a company at any point of time. However, it is important
to keep the website free from any security attacks. Security threats such as those mentioned in
the above paragraph is largely unprotected (Benson, McAlaney and Frumkin 2018).
Srinivasan et al. (2017) said that through internet marketing, the entire process of
shopping has become much lower. At the same time, the customers also track the products
that are on the way to deliver. Therefore, it can be said that, through online marketing, the
companies provide the customers with a great shopping experience and thus ensure that the
customers will revisit the site in order to get a quick access (Opreana and Vinerean 2015).
In the opinion of Thakur et al. (2015), security threats is discouraging for online
shoppers. However, many online shoppers are not informed on these threats. They either do
not know the level of severity of cyber security attacks or are less concerned about it. Cyber
security threats is more threatening to B2B customers.
2.4.3 Relationship of experience with online shopping behaviour
Marketing the products through online helps the companies to reach their targeted
customers. Through internet marketing, the customers can set their own benchmark. Drastic
emergence of digital technology has made it easy for the customers to compare in between
different brand along with the quality of products or services before forming their buying
decision (Taiminen and Karjaluoto 2015).
Verhoef et al. (2015) noted that customer referral is being regarded as one of the most
valuable marketing tool which helps the companies to strengthen their public image. This is
the key of getting a strong position in the intense competitive market. Digital marketing has
helped the customers to post their reviews on the official page of a company. Positive review

16LITERATURE REVIEW
regarding a product creates positive vive among the new customers and thus influence their
buying behaviour. On the contrary, Stephen (2016) argued by saying that negative review
towards a products affects the attitude of new and potential customers and thus creates
restriction for them to initiate their buying decision. Customers have become highly intended
towards perceiving the review of a product before buying it. Therefore, detailed information
regarding a product helps them to acquire knowledge regarding a brand. This is the
fundamental factor to influence their buying decision.
The educated people have become much inclined towards digital media and they have
become very much keen towards accessing the digital channels in terms of buying products.
The consumers in contemporary times are highly exposed towards numerous digital
communication channels. Prompt development of technology is helping the marketers to
strengthen their connectivity with the customers. With the assistance of digital marketing, the
marketers create the provision for the consumers to think beyond the traditional periphery.
With the assistance of digital marketing, the customers are becoming able to revolve their
own circle of searching information (Melis et al. 2015).
Multiple digital media channels are being accessed by the customers in order to
perceive a product, analyse its durability of a product and thus form their buying decision. By
using the digital tools, the marketers are also promoting their products in an effective manner
with the intention of aligning maximum number of customer within a single platform. After
buying a product, a customer can also give suggestion for modification of a product by
posting his or her review. Therefore, it can be said that digital media is one of the most
appealing and magnificent platforms in order to promote the products and thus get maximum
number of customers (Opreana and Vinerean 2015).

17LITERATURE REVIEW
Security
Trust
Experience
Independent Variables
Online Shopping Behaviour
Dependent Variable
According to Lissitsa and Kol (2016), online shopping experience can be both
positive and negative. A positive experience will create positive word of mouth and attract
more online visits. On the other hand, a negative experience will create negative publicity of
the particular site. This will add more numbers to the dislikes and commented section of the
website. This means experience is significantly important to influence the consumer
behaviour for online shopping. As stated by Liaukonyte, Teixeira and Wilbur (2015), positive
reviews for a website attracts more visits. The trend to check reviews and follows the trend is
increasingly growing. This is not just related to checking reviews for a product but also to the
website.
2.5 Conceptual framework:
Figure 2: Conceptual framework
(Source: As created by researcher)

18LITERATURE REVIEW
The above conceptual framework shows dependent and independent variables being
chosen for the research work. Dependent variables as mentioned in the conceptual framework
are trust, security and experience. Independent variable is online shopping behaviour.
2.8 Literature gap:
From the above research, it is evident that multiple research have been conducted in
order to highlight internet marketing which is the emerging trend in contemporary business
scenario. Research has also been made on consumer behaviour and how it is being influenced
by internet marketing. Reference to the fashion industry has also been given. However, no
research has been carried out to analyse the impact of online marketing on promoting men’s
casual wear. In order to mitigate such gap, this research has been carried out how internet
marketing is impacting especially the male customers to form their buying decision.
2.9 Summary:
The literature review section has identified that online marketing is an effective tool
in terms of reaching to a large consumer base. Online marketing whether or not will be a
success depends a lot on consumer behaviour for accessing the online sites. Customers do
access online shopping sites to view and purchase their desired items. However, online
shopping behaviour is influenced from both dependent and independent variables. Dependent
variables trust, security and experience were found as having moderate impact on consumer
behaviour for online shopping (Pappas 2016). It depends much on the nature of transaction
and awareness of the online users about the possible flaws of accessing online sites (Agag
and El-Masry 2016). It was also being found that people give importance to reviews and
word of mouth publicity to access and make transaction from a particular online site.

19LITERATURE REVIEW
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