BUSN20016: E-Marketing's Impact on Luxury Goods Purchase Decisions

This report investigates the impact of e-marketing on consumer purchase decisions, specifically within the context of luxury brands. The study highlights the shift in consumer behavior towards online platforms and the increasing reliance on e-marketing tools such as social media. The research aims to determine the extent of internet marketing's influence on consumer behavior, develop effective online marketing strategies for luxury brands, and measure the effectiveness of various e-marketing tools. The methodology involves a literature review of academic sources and secondary data analysis from Hamleys' website and social media channels (YouTube, Facebook, Google, Twitter, and Instagram). The analysis focuses on social media engagement rates, conversion rates, and the overall impact of online marketing efforts on consumer purchase decisions for luxury goods, considering factors like price, quality, societal influences, and brand loyalty. The report provides a comprehensive analysis of how e-marketing strategies affect the luxury goods market and offer insights for businesses.

Impact of E-Marketing of Luxurious Brands on Consumer Purchase Decision: Case of
Hamleys
Problem Statement
E-marketing has drastically changed the scenario of consumer behaviour and marketing
techniques. Internet is now considered as a medium or path for consumers to communicate
regarding brand and style of products and services (Felix, Rauschnabel, & Hinsch, 2017). With
the changing environment, the consumers wish to spend less time in physical research and are
highly dependent on e-marketing tools such as Facebook, Google, LinkedIn, Twitter, YouTube
and others. Online marketing has no time limit and can attract the customers efficiently and
effectively. This study shall help in understanding if internet marketing affects consumer
behaviour towards luxury goods (Ashley & Tuten, 2015).
There are different arguments to whether or not luxury brands should sell their products
online. It is not easy to build a website that defines an organization’s products and services that is
in link with marketing. People are now looking for updated information simply by a click on the
site. Social media sites can now keep the customers updated about such information that would
help in consumer purchase decision process (Schivinski & Dabrowski, 2016). Although the
importance of internet marketing is dependent on the nature of its products and services, internet
is becoming of utmost importance to all kinds of products and services. Wealthy consumers tend
to spend more money on online shopping rather than retail shopping. However, online channels
sometimes question the status and credibility of a brand. It has been perceived that factors such
as price, quality, societal factors and brand loyalty affects consumer behaviour of luxurious

goods. This study intends to evaluate whether online marketing of luxury brands influences
consumer purchase decision (Godey et al., 2016).
Aim and Objectives
This research proposal aims to investigate the impact of e-marketing or internet
marketing on consumer purchase decision of luxurious goods. The objectives are to:
 Determine the extent of impact of internet on consumer behaviour.
 Develop strategies for online marketing of luxury brands.
 Measure the effectiveness of internet marketing tools.
Methodology
To assess the variables accurately whether or not consumer purchase decision is affected
by online marketing, this study applies various methods to conduct the study:
 Literature review- This research shall review literature of different scholars and academic
experts. The peer-reviewed journals, publicly available reports and academic books shall
be referenced for studying the relationship between luxury goods and consumer purchase
decision. Conclusions shall be drawn from the literature and theories regarding consumer
purchase decision shall be deeply explained.
 Data collection- This research study shall involve secondary data collection from the
website of Hamleys. Data shall also be gathered from social media sites such as
YouTube, Facebook, Google, Twitter and Instagram. Also, data shall be collected from
government and industry sources. The research shall involve both qualitative and

quantitative data for the purpose of the study. Theories related to consumer purchase
decision shall be qualitative in nature.
Secondary Data Sources and Data
As stated above, this study shall mainly use secondary data from Hamleys website and
other social media sites used by the company for marketing. Particularly, the frequency of social
media posts on YouTube, Facebook, Google, Twitter and Instagram shall be analyzed. The reach
and views of the posts shall be noted. Further, the conversion rates of online shopping by
consumers of Hamleys shall be compared with the physical selling environment. The
engagement rate for social media marketing shall be analyzed where the existing or potential
consumers would be shown commenting, liking or sharing the posts made by Hamleys (Gautam
& Sharma, 2017).

References
Ashley, C., & Tuten, T. (2015). Creative strategies in social media marketing: An exploratory
study of branded social content and consumer engagement. Psychology &
Marketing, 32(1), 15-27.
Felix, R., Rauschnabel, P. A., & Hinsch, C. (2017). Elements of strategic social media
marketing: A holistic framework. Journal of Business Research, 70, 118-126.
Gautam, V., & Sharma, V. (2017). The mediating role of customer relationship on the social
media marketing and purchase intention relationship with special reference to luxury
fashion brands. Journal of Promotion Management, 23(6), 872-888.
Godey, B., Manthiou, A., Pederzoli, D., Rokka, J., Aiello, G., Donvito, R., & Singh, R. (2016).
Social media marketing efforts of luxury brands: Influence on brand equity and consumer
behavior. Journal of business research, 69(12), 5833-5841.
Schivinski, B., & Dabrowski, D. (2016). The effect of social media communication on consumer
perceptions of brands. Journal of Marketing Communications, 22(2), 189-214.