Dissertation: Digital Marketing's Effect on Consumer Behavior (Nike)

This dissertation investigates the effect of digital marketing on consumer behavior, focusing on the retail sector and using Nike as a case study. The research explores the trends of digital marketing in the UK retail sector, analyzing the role of online advertisement in influencing the buying decisions of Nike's consumers. It examines the relationship between digital marketing and consumer buying behavior, providing recommendations for unique digital marketing technologies that could influence consumer decisions. The study includes an introduction to the research background, aims, objectives, research questions, rationale, and significance. It also provides a detailed literature review, research plan, data analysis, conclusions, and recommendations. The dissertation covers key themes such as the analysis of digital marketing trends in the UK retail sector, the role of online advertisement, and the relationship between digital marketing and consumer buying behavior. The research aims to provide insights into how digital marketing strategies can impact consumer behavior and provide Nike with actionable recommendations for improving its marketing efforts.

Dissertation
(The effect of digital marketing on
consumer behaviour)

Abstracts
Digital marketing is a promotional measure which is used to create advertisements
through various digital channels such as search engine, website, social media, email and mobile
applications. In the present research project descriptive design and qualitative research design is
selected for managing flow of research outcomes. The design is selected with a view of
conducting a detailed investigation on impact of digital marketing on consumer's buying
behaviour. This study analyses impact of digital marketing on the buying patterns and behaviour
of consumers of Nike.
Buyers are attracted and influenced thruogh various means of digital marketing and same
have affected their buying behaviours. Before making a purchase decision they get themselves
well informed, aware about the good and know about the latest trends and carry out the
comparison of all available option and then finally make a decision about which product to buy.
Advise is presented in the form of options that can be exercised by Nike who is a leading
organisation when incorporating use of digital marketing for promoting its goods through various
platforms of digital technology.
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TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................1
Research background .................................................................................................................1
Research aim and objectives.......................................................................................................1
Aim..............................................................................................................................................1
Objectives....................................................................................................................................1
Research question.......................................................................................................................2
Rationale of the research.............................................................................................................2
Significance of the research........................................................................................................2
CHAPTER 2: LITERATURE REVIEW ........................................................................................3
Theme 1: Analysis of digital marketing trend in retail sector of trend UK................................3
Theme 2: Role played by online advertisement in influencing consumer's buying decisions....6
Theme 3: Relationship between digital marketing and consumer buying behaviour .............10
CHAPTER 3: RESEARCH PLAN................................................................................................14
Research design.........................................................................................................................14
Research Type...........................................................................................................................14
Research Approach...................................................................................................................15
Research Philosophy.................................................................................................................15
Data collection..........................................................................................................................16
Sampling...................................................................................................................................17
Data analysis.............................................................................................................................17
Ethical considerations...............................................................................................................18
Reliability and validity..............................................................................................................18
Research limitations..................................................................................................................19
CHAPTER 4: DATA ANALYSIS................................................................................................21
CHAPTER 4: CONCLUSION......................................................................................................36
CHAPTER 5: RECOMMENDATION..........................................................................................39
REFERENCES..............................................................................................................................44

Topic: To investigate the effect of digital marketing on consumer behaviour in retail sector: A
study on Nike
CHAPTER 1: INTRODUCTION
Research background
Digital marketing is marketing technique where promotions are done via digital channels
such as search engine, website, social media, email and mobile applications. With use of all
available digital platforms the organization around the globe are persuading the viewers and
consumers to buy their products and services by presetting the in effective and attractive manner.
Efforts are made by businesses to use electronic media and internet to leverage all the digital
channels to connect with present and prospective users. In the present time no one is untouched
with the digital technology and on one is out there in world who is not connected to internet.
This have made digital marketing one of the largest and biggest platform to market t product and
services.
The last decade was a time frame from where there was a paradigm shift from
traditional marketing to digital. Most of the consumers now nowadays have access to internet
and search the required products and services online and this made online marketing and
advertisement one of the essential tools of marketing mix of each and every firm around the
worlds (What is Digital Marketing 2018). In last 10 years use of internet has a deep impact on
various industry but one of most effected is marketing. The time of old school marketing tools
such as door to door selling and calling the consumers have become outdated but not yet obsolete
but digital marketing have reached a place where no one reach. This have made the firms
approach to consumer at larger scale by empowering consumers as they can get whatever they
want in less time and that too with available humongous choices.
With digital marketing the consumer behaviour has also changed as now they are
presented with same or similar products pertaining to different brands by various seller at distinct
prices, so buyer have choice to compare all available options and then make a purchasing
decision. The consumer does not get satisfies with minimal choices and require more options to
choose unlike before 10 years where consumer used to buy from nominal available options
which used to make their shopping faster. But now time has changed and all this is due to impact
of digital marketing.
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The present research is related with determination of the impact of digital marketing on
consumer behaviour of Nike Inc. This organization is a multinational corporation regulating
operation in most of the countries around the globe. The company is engaged in manufacturing
of footwear and recreational sports outfits for different type of consumers. The business has its
business operation at international level and it present a requirement for the organisation to
reach all the consumer at wide level with all its available products (Benefits and Importance of
Digital Marketing, 2018) Technology is one of the most supportive tools offering the
organization in identification of needs and requirements of the consumers and offer them with
commodities of their choice. This research presents insight about the consumer behaviours with
emergence of digital marketing. The importance of online advertisement is also presented in this
study in context of attracting larger mass on the buyers. The projects also define a relationship
of customer's buying behaviour and digital marketing as correlation between two.
Research aim and objectives
Aim
"To investigate the effect of digital marketing on consumer behaviour in retail sector: A case
study on Nike".
Objectives
 To assess the trend of digital marketing in UK retail sector.
 To analyse the role of online advertisement in influencing buying decisions of Nike’s
consumers.
 To study the relationship between digital marketing and consumer buying behaviour in
the context of Nike.
 To recommend unique digital marketing technologies to Nike’s that influences
consumers buying decisions.
Research question
 What are the trends of digital marketing in retail sector of UK?
 What role digital marketing plays in influencing the Nike's consumer's buying decision?
 Explain relationship between digital marketing and consumer buying behaviour of Nike?
 What can be recommended to Nike in context of unique digital technologies for
influencing consumers buying decisions?
Rationale of the research
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Technology and is impact are interest area of the scholar and this influenced the
researcher to select digital marketing and its influence on buying behaviours of shoppers. The
experience of working in a retail shop for longer time and possessing skills and knowledge about
using online and digital marketing tactics persuaded the research project in the direction of
analysing the consumer purchasing behaviour (IMPACT OF DIGITAL MARKETING ON
CONSUMER BEHAVIOUR, 2018). This interest in area will make this research completion
more effective and precise. The sales in the stores are falling day by day with increase in the
online shopping trends and same problem is faced by Nike Inc as well. Effective research is
conducted to find out techniques for digital marketing influencing the buying behaviour of
consumers. The research is aimed at determination of the effective measure to resolve the issue
with identification of the tool to increase of digital marketing for enhancing the sales.
Significance of the research
This study focuses on identification of the digital trends in retail sectors and effect of
digital marketing on the consumers and their purchasing behaviour. The research can provide
assistance to the future researcher as digital marketing is one of the current trends in retail sector.
The study is focused on giving aid to the marketing policy maker of different organisation,
which presented the changes in behaviour of consumer such as their buying habits with evolution
of digital marketing. Furthermore, the study will provide a base to the future scholar to carry on
further investigation on the buying decisions and habits of consumers with changing digital
marketing techniques. The study can also be referred by market analyst and economist to
examine the changing trends and references of the buyers.
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CHAPTER 2: LITERATURE REVIEW
In the present study the literature review presents the view and trends on the retail sectors
of UK along with the effects of online advertisement on the buying decision of the consumers.
The LR will also present the relationship between the buying behaviour of customer and digital
marketing.
Theme 1: Analysis of digital marketing trend in retail sector of trend UK.
According to Amaro and Duarte (2015), in the 20th century retail is one of the sectors
which have experienced major shift in context of marketing’s. The consumer preferences
changes with a faster pace and the retailer who do not speed up with these changes have a risk of
falling behind from its competitors. The recent trends in the retail sector of the UK has been
listed by the author are personalisation, customisation, multi-channel commerce, social currency
and artificial intelligence. Personalisation is defined as presenting products and services to
consumers which are personally relevant to them and likely to expand the experience of the
shopping. Customisation is not much different from personalisation, but here power is in the
hands of consumers and to expand their shopping experiences through taking custom
requirements of consumers and providing services and commodities accordingly. The multiple
platforms are available in the present era from where products can be bought like, amazon,
Flipkart or any other online site. Consumers are relying on word-of-mouth instead of
advertisements for product recommendations. All these factors are trends in the retail sectors of
the UK which have a focus on the buyers and satisfying them with providing goods and services
of their need as per their specification.
On the contrary Banerjee, Bhattacharyya and Bose (2017), stated that consumer is at
driving seat enabled with technology and in constant connection with it they are more
empowered as ever before. All this factor together drives changes in the shopping behaviour in
both physical and digital retail platforms. The author has put emphasis on the question that
whether the retail sector is really in trouble or is transforming. The confidence of the consumers
has increased but the spending power have declined with this the inflation has fallen down along
with growth in wages which means there has been no rising pressure on the buyers. The online
sales amounts to 20 % of total retail sales stating a growth by 10 times then the rate of store
sales. The sales in retail sector have boomed up with growth and developments of E-commerce
which is part of digital marketing. The retail sectors are required to keep a close eye on the
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consumers as they are the main driving force of the market in the recent time. All the focus must
be kept on consumer demands, their taste, preferences, requirement and accordingly goods and
services must be designed to fulfil their demands. The stores at market place is now one step
away as customers buy their necessities online through various available platforms of buying
goods and services. In this article this is stated that consumers are the drivers of the retail
markets and the market and retailer change according to the needs and requirement of buyer.
The retailers continue to make bold strategic decisions in an attempt to keep customers on side
and maximize profitability and gain competitive advantages.
Illustration 1: Digital marketing
(Source: Digital marketing, 2018)
As per the views of Beneke and et.al., (2016), the retail sectors are continuing to bloom
with meeting all the challenges in its path and efficaciously exploring digital trend which is
resulting in significant commercial benefits to all those companies who are able to harness them
effectively. The retail sector has become highly commutative where failures to go along with
times can be fatal. Some of the retailers can beat the competition which change in strategies of
keeping the prices low and reducing profit margins but most of them keep their focus on getting
excellence in the products, services and consumer experiences. The author precisely mentioned
that under the retail sectors change is now upon the retailers as whoever want to remain viable
must respond to the changes. Trends in retail markets are fluctuating and changing with faster
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pace with availability of more dynamic distribution platform and one of them is digital
marketing, which have completely changed the scenario of retail sectors. Retail remains the
single largest private sector employer in the UK, with one in 10 people working in retail, and
annual sales totalling a staggering £358bn. The preference of consumers is shifting to online
shopping rather than going to physical stores to buy goods and products.
On the contrary Melis, K and et.al., (2015) states that retailer turn digital trends to their
advantages rather than watching their competitors getting ahead in the competition while
standing still with not adapting the changes as per recent trends. The retail sectors have timely
recognized that digital technology can stimulate the in-store experiences and aids them in
avoiding competition in context of price. Amazon muscled into the top five this year (behind the
supermarkets), and now accounts for £4 in every £100 spent in the UK. The author has put focus
on the point that trends in retail market have shifted form old school purchasing habits its
digitization for both buying and selling of goods, services and other commodities. The best way
to flourish a business under retail sectors is to integrate the old experience and modern time
changes for the survival and smooth operation of organizational activities.
On the other hand, Chen and et.al., (2016) explains that online sales are growing
continuously with stating its importance in present time but for some of the businesses in this
sector the day of double digits and year by year growth with online sales are over. The era of
commerce has arrived where preference is given to maintain growth with having innovative
business strategies for making the online experiences more engaging and persuasive. The digital
world is under constant change and continuous to transform with various segment of the
population on the basis of age and their capabilities of adapting newer technology with their own
distinctive pace. The markets and retailers are required to keep a close eye on retail e-commerce
trends and developments. As per view of authors Wiese, Zielke and Toporowski (2015), of this
article have stated that digital marketing is getting passed with time but the trend for the future is
artificial intelligence. Trends like conversational commerce, using chatbots and voice search
have been closely associated to widely-adopted online shopping habits amongst millennials as
well as other population segments. The numbers of stores moving to online have increase and
they are taking measures as well to improvise their online shopping experiences and
multichannel approach (Digital trends in Retail, 2018). The consumers behaviours changes and
evolve in the same way the digital world do, the consumer continue to discover newer
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opportunities on both online and offline platforms. Almost three-quarters of millennials still
prefer stores to online shopping which defines that fact the digitization have not yet fully taken
over the retail sector. A large number of people still prefer to shop from the stores rather than
online. The facts are presented by Du, Hu and Damangir (2015), 74% of people in UK still prefer
physical stores in contract of 24% preferring online shopping. 51% of the people prefer to
navigate, get information and pay using their phones in stores. This stated that digitisation have
impact on people more with one technology but lesser for another technology. Almost 3/4 UK
population do not like online shipping but almost 50% of them like to use their phone to make
payment for their purchases. This states the facts that phone technology is more used in UK
rather than websites and app to shop online. Consumer prefer using digital technology one or
other way though do not use it for shopping but significantly uses for making payments and
seeing the details of the products and services they want to buy. The people from all the
generation be it children, adolescent, young or old age group uses the digital technology hence
digital marketing in the trial sectors has become one of the major phenomena of promotion of
gods and services.
Theme 2: Role played by online advertisement in influencing consumer's buying decisions
As per the views of the Nguyen, de Leeuw and Dullaert (2018), with increase in
widespread use of internet and Mobile devices have not only attract numerous consumers
searching for buying products online but have also created opportunities for the retailers to
enhances their online sales. Figures stats that in 2014 more than 46% of the European consumers
used online shopping platforms to get their desirable goods and services. With this the
organisation faces challenges in meeting the requirements and orders of consumer online
including on times and efficient delivery, management and accuracy of inventories and effective
designing and maintenance of the warehouses. The retailer's operations and activities get affected
mostly through the advertisement and promotion activities of products and services which they
sale online. In the present time one of the most popular way of promoting business and its
commodity is through digital marketing via online advertisement. This is done on the social
media, in app promotion and other measures. The consumers are more driven through the
promotions advertisements they see on the internet and are persuaded easily for buying them.
Growth in UK ad spend in digital channels through 2019 is expected to come from mobile, up
20.3% in 2018, followed by a 15.5% increase in 2019. This is a way to influence the prospective
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consumers to indulge in shopping with attractive presentation of the products through online
advertisements. The retailer has to react on time to deliver and make available the product as
demand of the shopper can shift to another platform or can change the mind set ones it is not
available at time of demand.
Conversely, Liu and Park, (2015) presents a view point that online advertisement is a
form of digital communication that is intended for convincing a target audience to purchase or to
take some or other action significant for buying the product or services. The purchase process
includes procedure of decision-making including risk. The author has defined a relationship
between independent variables which are explained as emotional aspect along with behavioural
and attitudinal aspects of consumer’s buying behaviour. Advertisements, sales and promotion
are different tools that are present in the market for establishing communication with present and
perspective buyers. The effectiveness and influential power of online advertisement is not a new
concept (UK digital marketing, 2018). Every person and business know the importance of online
promotion for influencing the consumer's buying behaviours and drives their spending forces.
The effective online advertisement is defined through ad recall, ad recognition and brand
awareness. With advancement of technology the perspective of people and business person have
changes regarding the presentation of goods and services. Buying products through influencing
from online advertisement include more risk as with less availability of the information related
with goods. An advertisement means reaching a potential buyer while the buyer is seeking
information will have a greater impact. In online advertising the buying behaviours of the
consumers is defined as they are more responsible before making purchases as it includes more
risk as its information regarding the goods nor services they are buying.
In accordance with Valaei and et.al., (2016), digital advertisement is considered as one of
the largest factors generating the revenues for the economy of a nation across the globe. This
helps in generation of employment with influencing larger section of the society. Advertisement
is a way to present the goods and services in whatever form the organisation wants it to be.
Online advertising helps business in attaining competitive advantage. Based on the
understanding regarding the advertising, the approach rooted in the organizations search for the
right answer on the effects of the competition. The author reflected in the study that usually in
formulating the advertisement and marketing strategies the cultural values are being ignored at
their peril. These factors are less talked about and cultural effect on the individuals buying
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effects are not explored to a greater extant. The factors which effect the purchasing decision on
seeing advertisement includes study on the attitude towards online advertisement (ATOA) and
Attitude towards online buying (ATOB). For determination of both these attitudes kept the
emphasis on the sectors such as individualism, uncertainty avoidance, power distance,
masculinity and femininity, and long-term orientation. There is a significant development in the
internet marketing energies for understanding the attitude and behaviour of the consumers as the
physical stores are moving towards online channels of selling their products and services.
Illustration 2: Digital marketing trends
(Sources: Digital marketing trends in 2019, 2018)
Instead, the authors Xie and Lee, (2015) reflect in their study that one of the reasons that
online advertisements are preferred is global access. In the era of international trade and
commerce and widespread global business operation understanding of different cultures and their
values is necessary in order to drive the behaviours of the consumers and attract them to buy a
particular product. The online advertisement putting emphasis on the cultures and values of
different nations plays a vital role in changing and making the perception of the consumers
worldwide as every person linked to their culture rather than relives and value of some other
country. Different advertising portrayals and different advertising techniques show precious
information regarding how different people of different market segments view advertising and
firm branding activities. This practice in the online advertisements have immense effect on the
attracting and persuade the consumers to buy the products so promoted. The promotion of goods
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