Impact of Online Marketing on Consumer Behaviour: A Literature Review

Running head: LITERATURE REVIEW
Literature Review
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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

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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.