HI6008 Business Research: Digital Marketing and Consumer Behavior

This report is a comprehensive literature review examining the influence of digital marketing on consumer buying behavior, particularly within the context of Woolworths supermarket. The review addresses key research questions, including the definition and concept of digital marketing, its effects on consumer purchasing behavior, and effective digital marketing strategies for Woolworths. It explores various aspects, such as the impact of digital marketing on different stages of the consumer buying process, enhancement of brand loyalty, and the role of social media and mobile applications. The report synthesizes findings from various scholarly sources, discussing the features of digital marketing, its influence on consumer decisions, and strategies like attractive messaging and social media engagement. The analysis considers the evolution of digital marketing, its advantages over traditional methods, and the importance of adapting marketing strategies to meet the changing needs of consumers in the digital age. The review also highlights the importance of brand awareness and the use of online engagement to build brand loyalty. This literature review aims to provide insights into the dynamic relationship between digital marketing and consumer behavior in the retail sector.

Business research - Literature review

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Contents
Introduction......................................................................................................................................2
Research Questions..........................................................................................................................2
Literature review..............................................................................................................................3
Concept of Digital marketing.......................................................................................................3
Features of Digital marketing......................................................................................................4
Influence of digital marketing on consumer purchasing behavior...............................................5
Effect on stages of consumer buying process..........................................................................5
Enhancement in brand loyalty..................................................................................................7
Digital marketing strategies which can be adopted by Woolworth supermarket to influence the
customers behaviour....................................................................................................................8
Brand Awareness through attractive messages........................................................................8
Social media.............................................................................................................................8
Smart phones and mobile applications...................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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Introduction
The business dictionary defines Digital marketing (DM) as the advertisement of products or
services by the means of electronic media. Such electronic media can either be just one or more
than one. To quote example, advertising channels which can be used as a component of this
marketing incorporate promotional endeavors constructed by the means of Internet, smartphones,
social media platforms and electronic announcements, digital, TV and radio channels (Chaffey,
2019). Digital marketing is a conventional term that describes the efforts made by the company
or business to get connected with their clients via electronic technology such as emails, mobiles,
social media, geolocations, through online communities of customers and video-based material.
This is the era where customers directly want to interact with the companies whose products they
wish to purchase and digital media is the means to do that. The digital marketing domain has
turned more complex as it includes multi-departmental efforts (Rouse, 2015). This literature
review is conducted to evaluate the impact of digital marketing on consumer buying behavior in
case of Woolworth’s supermarket in that context it aims to answer the research questions
proposed which are presented in the section below.
Research Questions
1) What is the meaning and concept of digital marketing?
2) How digital marketing can affect consumer buying behavior?
3) What are the digital marketing strategies that can influence the consumer buying behavior
towards Woolworth supermarket?
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Literature review
Concept of Digital marketing
According to Tilburg and Holthof (2018), digital marketing is a term that is practised with the
purpose of marketing goods and services. This technology can be originated through the internet
that involves mobile devices, smartphone and promotions. Digital signage display is another
method of using digital media (Pelsmacker, et al., 2018). Digital marketing is the way
companies use different channels to reach most of their target customers. Such digital channels
include social media (Facebook, Instagram, YouTube), e-marketing, online advertisements,
mobile apps, polls, games etc. Chopra (2016) commented that this is a new marketing form
which provides contemporary opportunities for organizations to carry out their respective
business. Marketing processes carried out through digital channels enable the marketers to
interact with potential audiences in very less time regardless of geographical location, distance
and nature. The authors also agreed that one-to-one or traditional marketing is still the
foundation of marketing which is used but additional attention is paid to this newly evolved
concept of marketing (Chopra, 2016). This digital marketing has emerged out as an essential
aspect of every business or organization today but few marketing people are still lacking in
identifying the importance of digital marketing. This has also been validated through the research
conducted by Khan (2013) where the author examined the awareness of DM (Digital marketing)
among Pakistani marketing experts. The outcomes of his study revealed that Pakistani
professionals were very sceptical about the concept of digital marketing and towards the tools
used in digital marketing (Khan & Siddiqui, 2013).
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Features of Digital marketing
Digital marketing is the utilization of innovations and advanced technologies to help advertising
activities of a company so as to improve client learning by coordinating with their necessities.
The creative and technical facets of the internet such as designing, development, scaling and
advertisements are bonded together in digital marketing (Abud, 2019). This type of marketing
has added unique features and advantages to traditional marketing as it reduces the cost of
distributing information that too on the global platform. The interactive idea of Internet
promoting, both as far as giving an instant reaction and evoking reactions, is an exceptional
nature of the medium. Digital advertising consist of more comprehensive degree since it includes
both computerized sources and customer database frameworks (Sood, 2017).
Digital marketing notion is turning favorite day by day as it uses majority media mechanism like
internet, TV, smartphones and radio. The most famous tool used by digital marketing is SEO
which stands for search engine optimization. The task of SEO is to increase the way web marks
like Google find your site. This concept of digital marketing commenced via the internet and the
website's search engine ranking. The use of mobile devices resulted in increasing the use of the
internet while commuting and people started using social media to get connected with each other
all over the world(Smyth, 2019).
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Influence of digital marketing on consumer purchasing behavior
Effect on stages of consumer buying process
Dahiya and Gayatri (2017) carried the research to assess the effect of digital marketing on the
automobile customer's buying decision. The data was collected through primary sources where
784 Delhi based respondents filled their responses in the questionnaire and the sampling of data
was then done using chi-square tests, proportionate and binomial test. Their study showcased the
result that 75% of the customers used the minimum one digital channel while purchasing their
car. The most frequently used digital marketing communication medium was a website, followed
by mobile phone apps and then social networking sites. Every individual buying decision-
making process stage starting from the need identification to the post-purchase was strongly
influenced by digital marketing. The "evaluating stage" of the decision-making process was
significantly affected by this concept. The outcomes of the study validated that digital marketing
is adequate to ignite the need recognition stage and customers feel very positive in context to
this. It was evident from the survey results that customers get influenced by the reviews of the
other customers and also share their feelings to express their post-purchase behavior through
digital marketing medium (Dahiya & Gayatri, 2018).
Reddy (2016), argued that the new technological web-based era has increased the
interconnectivity of customers which further has influenced the buying behaviour of the
customers. So it is very essential for the organizations to focus on perceiving the influence of
digital marketing on the processes of the customer's purchase. The authors conducted their study
on the retail store of Nike. They used the hybrid research method in their study including both
exploratory and descriptive research. The study showed that customers purchase attitude was
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influenced in a way that digital marketing impacted mainly three stages of the customer buying
process which were problem identification, purchase decision stage and lastly the post-purchase
behaviour stage. Their study recommended the retail organizations like Nike that due to drift in
technology and customer behaviour they are required to advance their marketing strategies which
could reach the customers in a fraction of seconds that most impacts their decisions (Reddy,
2016).
On the other hand, the effect of (SMM) social media marketing was studied on the customer's
purchase decision by Nizar and Janathanan (2018). It was found that there exists a absolute
relationship between customers buying behavior and social media marketing (Janathanan &
Nizar, 2018). Mahalaxmi and Ranjith(2016) tried to analyze whether the customers are aware of
the influence of digital marketing and channels in their buying decisions. The survey results were
evaluated using a chi-square test similar to Dahiya and Gayatri (2017). The results of their
research concluded that survey participants were familiar of digital marketing and they also
preferred to purchase electronics and goods via digital medium in their buying behaviour. But
this study had limited scope as it was carried in a very small region and it was hard to judge the
purchase decisions of other customers belonging to other regions through this small survey. The
authors argued that in the prevalent digital era; digital mediums play an essential role in
increasing the sales of the products and services of any company (Dahiya & Gayatri, 2018).
According to Kizgin (2018), the online business makes competent to the corporation for
generating the advantageous for every opportunity in terms of interacting with customers. The
social networking techniques allow the bulk of customers to targeted communication to ensure
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that a company’s information can be provided to targeted customers. Moreover, practices of
social media allow the interaction in terms of extending in both manners such as by creating
interactivity between customers as well as business that plays an essential role in persuading the
behaviour of consumers (Kizgin, et al., 2018).
Enhancement in brand loyalty
On the contrary Lodhi and Shoaib (2017) analyzed the influence of e-marketing on the Karachi’s
customers behaviour. Authors stated that these days’ companies concentrate on designing their
official web-page for advertising their products or services to their target segment instead of
marketing on TV, magazines, newspapers etc. As per them, e-marketing will be the future of
marketing as it is fast, cost friendly and spreads accurate data and information as and when
required. Their study depicted that 90% of the people are fascinated through online
advertisements commenced on social media, as social networks clients are not explicit to sex and
age gathering so everybody sees their kind of ad on their Facebook pages. He concluded that
customers only buy products after watching online advertisements instead of reading it on other
sources like newspapers, magazines etc. Online marketing helps companies to enhance brand
loyalty. As the present clients are not brand loyal any longer so with the assistance of web-based
marketing; organization gives updates of their products or administrations to keep up loyalty
with their clients (Lodhi & Shoaib, 2017).
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Digital marketing strategies which can be adopted by Woolworth supermarket to influence
the customers behaviour
Brand Awareness through attractive messages
Chaffey and Ellis-Chadwick (2019) illustrated that a company can provide actual data regarding
the brand to potential customers because of distributing clear data regarding the goods and
services to the company. It is evaluated that corporation can enhance their awareness of brand
between customers through attracting message to consumers. The message is attractive as
compared with competitors as it would be beneficial to create a distinct picture in customers’
mind and generates maximum profits (Chaffey & Ellis-Chadwick, 2019).
On the other side, Kelly et al. (2015) evaluated that a company can focus on that message can
take minimum time as well as covers the bulk of individual. It may directly impact customer
buying behaviour. It is evaluated that the company should find the email by the first name to
appeal the features that could be emotionally linked with the customer to brand. As a result, the
company can be capable of persuading purchasing behaviour related to customers (Kelly &
Vandevijvere, 2015).
Social media
Online engagement has turned out to be an effective strategy which is very important in building
advocate of specific product or brand; where customers purchase the product and refer the same
brand to others through both online and offline communication (Singh, 2017). Engagement rate
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measures the level of digital engagement content attained with the customers. Digital content
engagement includes different aspects such as likes; comments; shares; followers; re-tweets etc.
Maranga (2014) made it clear in his writing that many companies use the social media strategy to
enhance the brand awareness and attract a number of customers but at times it fails when social
media is not used appropriately. He recommended five different ways to use social media where
he suggested the companies to adjust their social media tactics so as to improve the brand's
influence on the decisions of their customers. He stressed that companies should change the
social conversations by which he meant to state that the company should use social media in a
way customers want it to use not in a way they want. The customers should be engaged in both
online and offline mode (Maranga, 2014).
Johnson (2012) in his study discussed and studied the impact of the social media marketing
strategy on the consumers purchasing decision. He named this strategy as social media shopping
where the customers form the community or groups and refer the purchased products or brands
to their peer ones or friends in that community or group. Customers these days get strongly
influenced by the reference made by the other customers. So he suggested that companies should
focus on making Facebook pages where they can publicize influential messages and information
pertinent to the brand and can influence a maximum number of audience by keeping them well
engaged in a way they like (Johnson, 2012).
Kim (2012) discussed that currently, various other supermarkets like Woolworths are utilizing
email and social media marketing for affecting the buying behaviour of their target customers.
Through the internet, the company can provide the essential details related to the products and
services they offer. Internet showcases the advantages of the product to the users in the most
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effective manner. Through regular pop up advertisements, the company can capture the mind of
the consumers in the competitive market. Customer buying process solely depends on the
consciousness of the consumer pertinent to that product or service. The organization requires to
use unique marketing strategy like the internet so that consumers can easily differentiate the
specific product from the other similar products available in the market (Kim, et al., 2012).
Smart phones and mobile applications
Tsirulnik (2019)conducted the study to know whether smartphones and mobile apps impact the
purchase intent of the customers. The study revealed; nearly 49.2% of home furnishing
customers and 47% of clothes buyers agree that mobile apps or adds showcased by the
companies or brands positively influence them. But, the retailers on the other hand state that this
strategy demands their active participation in mobile apps and social networking sites through
smartphones. His study also showed that direct mail is also an essential driver of customer's
purchase intent. Finally, the study concluded that usage of both social networking sites and
mobile apps can be a cross-promotional strategy which can be adopted by the company to
achieve success in grabbing the attention of customers, as well as the company, can also target a
number of audience through this cross-promotional strategy (Tsirulnik, 2019).
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Conclusion
From this literature review portion, it is found that many companies or businesses are using
digital marketing as an effective tool and it also impacts positively on the customers buying
behaviour. Digital marketing makes people aware of the brand and can create a unique image in
the minds of people. It also helps companies to elaborate their customer range and build brand
loyalty. Also, it is found that companies have increased their sales and market share through
digital marketing. It is evident from the past researches that digital marketing mainly impacts on
three stages of the customer buying process that are need recognition, purchase decision and
post-purchase stage. A company like Woolworth's limited, Australia can select different
marketing strategies like they can spread attractive messages about the brand, can use email
starting with company's name, social media marketing, online engagement through the Facebook
page, mobile apps and YouTube channels to influence the behaviour of the audience. Therefore,
it is expected that digital marketing will assist Woolworth’s ltd. in changing the buying
behaviour of the customers which further will help the company to gain a competitive market
position (Chepurenko, 2015)
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References
Abud, Y. (2019) What is the Difference Between Digital and Online Marketing?.
Chaffey, D. (2019) 10 reasons you need a digital marketing strategy in 2019.
Chaffey, D. & Ellis-Chadwick, F. (2019)Digital Marketing: Pearson.
Chopra, P. (2016) Why Should I Do A Digital Marketing Course?.
Dahiya, R. & Gayatri. (2018) A Research Paper on Digital Marketing Communication and
Consumer Buying Decision Process: An Empirical Study in the Indian Passenger Car Market.
Journal of Global Marketing, 31(2), pp. 73-95.
Janathanan, C. & Nizar, N. (2018) Impact of digital marketing on consumer purchase behaviour;
A case study on Dialog Axiata with specific reference to social media marketing..
Johnson, T. (20120 The Effects/Influences of Social Media Marketing on Consumer Behaviour.
Kelly, B. & Vandevijvere, S. (2015) New media but same old tricks: Food marketing to children
in the digital age.
Khan, F. & Siddiqui, K. (2013) The Importance of Digital Marketing. An Exploratory Study to
Find The Perception And Effectiveness Of Digital Marketing Amongst The Marketing
Professionals In Pakistan.
Kim, H., Xu, Y. & Gupta, S. (2012) Which is more important in Internet shopping, perceived
price or trust?. Electronic Commerce Research and Applications, Volume 11, pp. 241-252.
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Kizgin, H., Jamal, A. & Rana, N. (2018) The Impact of Social Media on Consumers’
Acculturation and Purchase Intentions. 20(3), p. 503–514.
Lodhi, S. & Shoaib, M. (2017) “Impact of E-Marketing on Consumer Behaviour: aCase of
Karachi, Pakistan”. IOSR Journal of Business and Management, 19(1), pp. 90-101.
Maranga, P. (2014) 5 Ways You Can Influence Consumer Purchasing Decisions: New Research.
Pelsmacker, P., Tilburg, S. & Holthof, C. (2018) Digital marketing strategies, online reviews and
hotel performance. International Journal of Hospitality Management, Volume 72, pp. 47-55.
Reddy, G. (2016) Digital marketing impact on the consumer decision making process in Nike’s
customer retail operations in South Africa.
Rouse, M. (2015) Digital marketing and its meaning.
Singh, A. (2017) Impact of digital marketing on consumer behavior.
Smyth, G. (2019) The History of Digital Marketing.
Sood, V. (2017) The impact of internet marketing on consumer buying behavior: A project report
Under the Guidance of Master of Business Administration in Marketing Management.
Tsirulnik, G. (2019) Smartphone apps and mobile ads influence purchase intent: study.
Valos, M., Habibi, F. & Driesener, C. (2016) Exploring the integration of social media within
integrated marketing communication frameworks: Perspectives of services marketers. 34(1), pp.
19-40.
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