The Influence of E-Marketing on Consumer Purchase Decisions in Retail

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Added on  2021/02/19

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This research report delves into the impact of e-marketing on consumer decision-making within the retail sector. It explores the influence of e-marketing on the consumer purchase process, examining factors that affect these decisions and current trends in the field. The study is based on primary data gathered from 20 marketing managers in retail organizations, revealing a positive correlation between e-marketing and consumer purchase decisions. The report highlights the ease with which consumers can evaluate alternatives based on criteria such as cost and quality, and the significant impact of readily available information on purchase decisions. Additionally, it discusses factors such as easy returns and online reviews, emphasizing how consumer feedback shapes the purchasing behavior of others. The research concludes by emphasizing the increasing reliance of consumers on e-marketing and its impact on their decision-making processes. The report also includes a literature review, research methodology, analysis, discussion, and recommendations, providing a comprehensive overview of the subject.
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Research Project
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ABSTRACT
In this report it has been described about how e marketing has impacted on consumer
decision making process in retail industry. Also, it is discussed on factors affecting consumer
decision process and current trends in e marketing. Moreover, how internet marketing is
influencing consumer behaviour for retail companies. In this survey primary data is been
gathered from 20 marketing managers of retail organisation. The results show that there is
positive impact of e marketing on consumer purchase decision process. Also, it has provided
varied sources to collect data and evaluate it. They are able to evaluate alternatives easily and on
basis of certain criteria like cost, quality, features, etc. other than this, the major impact is on
purchase decision. this is because of lot of info available.
It has been discussed that there are several factors which also impact on consumer
purchase process such as easy return, online review, etc. the positive comment or feedback of
consumer also impact on purchase decision process of other. They get product info from
feedback as well. Moreover, consumers are relying on e marketing and comments given. With
this effective process takes place.
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Table of Contents
ABSTRACT....................................................................................................................................2
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................7
RESEARCH METHODOLOGY..................................................................................................12
ANALYSIS AND DISCUSSION.................................................................................................16
CONCLUSION AND RECOMMENDATION............................................................................26
REFERENCES..............................................................................................................................30
Appendix........................................................................................................................................32
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Title - Impact of e marketing on influencing consumer purchase decision
making process.
INTRODUCTION
The evolution of internet has transformed the overall world. It has highly impacted on
human and industries. Use of technology in business operations has enabled in automating
overall process. There are many other techniques and tools used by companies. Also, technology
has provided a platform to grow and expand in other countries. The major impact of technology
is on marketing of products and services. E marketing is a platform where internet is used to
advertise products. It also uses social media platforms. It has enabled in attracting more people
and promoting is to wide area (Habibi and et.al., 2015). However, this has resulted in increasing
customer base and entering in new markets. Businesses are able to compete in market by
retaining their customers. Now days, customers search on internet to access any data or
information of any type of product or service. E marketing has majorly impacted on retail
industry. Many companies are promoting product through digital media. Thus, it has allowed
them to market products worldwide. Through it, they are marketing it in effective way.
Attractive advertisements are published on social media in various forms. The use of video,
content marketing, etc. is becoming a trend in e marketing.
Moreover, use of data analytics in e marketing is useful for retail companies. It has
provided them information regarding change in taste and preference of consumer. This has also
changed their purchase decision process. Furthermore, human interaction has changed due to
engaging on social networks. There is constant change in behaviour, habits, etc. of people.
Hence, it has modified their needs and preference. Additionally, perception of consumer is
changing according to their needs. Many people are using internet to interact with others and
collect data. So, it has become important for organisations to survive for long term in such a
competitive business environment. Similarly, marketing strategies are developed and on basis of
consumer needs, marketing activities are initiated. The rapid growth in internet marketing is
allowing business to attract right customers. The target groups are determined and on basis of it
marketing is done. Likewise, e marketing has resulted in delivering content value to consumer
(Shaltoni, 2017). It is because consumer use internet to make repetitive purchase. Apart from it,
personalised interaction is increased leading towards high retention rate. For a company it is
necessary to analyse consumer behaviour journey so that it is identified how they are making
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purchase decision. With this they get to know how information is searched and on what basis
alternatives are compared. Other than this, in post purchase behaviour it can be determined that
whether customer is satisfied with product or not. If not than on what basis they are satisfied or
dissatisfied.
Retail industry is widely spread all around the world. It offers variety of products to fulfil
customer needs. Also, there is intense competition among companies in different markets. The
growth and development of firm depends on way of marketing. This helps in attracting people
and generating revenue. But use of digital marketing in retail sector has highly affected
consumer purchase decision. They are being influenced by companies in several ways. At
present each and every info is available on internet. Companies have also specified their target
people and accordingly doing marketing. But availability of wide range of products has shifted
customer mind. They prefer those products that are cheap and is of high quality. Organisation are
using digital marketing to attract people. It has helped in collecting data of customers and
market. A consumer has to go through several steps to make a purchase decision. Generally, it
consists of five stages that are include in it. They are need recognition, information search,
evaluation of alternatives, purchase decision and post purchase behaviour. Hence, on each stage
behaviour of consumer varies. This leads to change in their purchase decision. It depends on
need of customer and source from where info is gathered.
Aims and objectives
Aim – To analyse the impact of e marketing on influencing consumer purchase
decision making process. A case study on retail industry.
Objective
To evaluate role of e marketing on influencing consumer purchase decision making process.
To identify factors affecting consumer purchase decision process.
To analyse current trends in e marketing
To recommend ways of how consumer purchase decision making process can be improved
Research question
What is the role of e marketing on influencing consumer purchase decision making process?
What are factors affecting consumer purchase decision process?
What are current trends in e marketing?
Rationale
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The trend of E or digital marketing is rapidly increasing. It has provided platform to
market product by directly interacting with people. There are different types of social sites used
in it such as Facebook, Instagram, E mail, etc. Now, customers are easily able to gather relevant
data and information from internet. Thus, it has highly influenced on their purchase decision
process. Alongside, there is change in way of communicating with customers. This study is been
conducted to analyse how e marketing is impacting on consumer purchase decision process.
Also, what is change in their taste and preference as well we need. Furthermore, what are factors
due to which consumer purchase decision process is influenced.
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LITERATURE REVIEW
Theme : Role of e-marketing on influencing consumer purchase decision making process.
As per Habibi and et.al., (2015) E-marketing is influencing the consumer buying
decision-making process. Consumers are attracted towards the e-marketing companies because
e-marketing companies are offering cash backs and attractive offers on the products. Companies
sell their products online with large amount of discounts and the company is also offering
discounts through online payments and these offers and discounts are attracting the customers
towards the e-marketing companies. Author also stated that the companies are selling their
products through the merger with e-marketing companies. E-marketing companies are promoting
the websites on large basis through the advertisements, TV and newspapers. These
advertisements also consist of the discounts and the offer which would be provided on the
websites. These offers are attracting the consumers because local retail shops are not providing
the attractive offers and discounts to the consumers. Local retail shops would not attract the
customers because these shops have to include the profits and the cost of buying the product for
retail shops is high according to the online companies. Shaltoni, (2017) Discounts are provided
to the customers from 20% to 80%, various products have various discounts which are attracting
the customers. Companies also invites the actors and big celebrities for promoting the products.
Online payment is attracting the customers and also it is helping the country to be digitalised.
Author also stated that the e- marketing companies are advertising the products on large scale
which the retail shops could not do. These companies are advertising through selling the brand
products with low discounted price and with attractive offers. Brands have the collaboration with
the e-marketing companies and these companies are buying the products in bulk so these
companies are buying the products at discounted and whole sale price. Brands have to sell their
products but these brands have not opened showrooms in the state or city those city members
would also order the product and get the product at given address. Chitty, D'Alessandro and
Gray, (2019) This facility of delivering the products at home is attracting the customers or if the
product is fit for customers they can change the products or return the products and the company
would provide them with the payment or different products which customers would order. All
the facilities which would be provided in retail shops is provided with the e-marketing
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companies and also at low prices. Author stated that nowadays customers are only buying the
products from e-marketing companies.
Theme 2: Factors affecting consumer purchase decision process
According to the Kiang and Shang, (2015) factors which are affecting consumer purchase
decision which have an effect on company as well. There are social factors like family plays an
important role in buying decision of the customer because family is influencing the customers
decision to purchase the product or not. As time is increasing the social status of the customers is
important and it is also influencing the buying decision of the customer. The standard of living is
increasing as per time the customers decision is affected by the income which has to be saved for
future. According to the Khan and Rahman, (2016) financial condition of the customer is
affecting the customers because customers have to maintain their effective learning goals in the
best possible way.
Sarquis and et.al., (2019) Nowadays, In the competitive market companies or brands are
more concerned on individual consumer behaviour which helps to better understand the goals
and opportunity. Consumer behaviour is the study of the processes involved when individual or
groups select affect the overall business goals. Consumer behaviour is a dynamic in nature which
one that dominated the market and the market trend. A consumer is someone who pays a sum to
consumer the goods and services sold by an organization. Also it requires and plays a most
important role to determine the best effective and influencing business goals. As according to
Davidavičienė and et.al., (2019) consumer is not just only an individual it is a king of the market.
For consumer decision making process is very critical and efficient for a product or services.
Even a buying packet of chips from a store is being a part of the consumer market as participate
in the buying a sum for the purchase. There are some factors which might affect and impact the
consumer decision making process which is cultural factors. As per the Kawa and Światowiec-
Szczepańska, (2019) cultural plays a most important and necessary role in duration of consumer
task which slightly influences buyers. Cultural factors is a very complex factor of human
behaviour its includes the human society the roles that the society plays the behaviour of the
society its values customs and tradition. In order to examine the consumer needs cultural factors
should have been the most necessary things which need to be considered by the hand of
marketers. Cultural factor also includes Sub culture These kinds of people generally share the
same value, customs and traditions for example nations, religion, racial group such all elements
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are reflected by sub culture. Miklošík, (2016) Cultural factor if influencing consumer buying
decision also includes social class this factors influence society class in fact every society
possesses one. It is important to know what social class is being targeted as normally the buying
behaviour of a socials class. Basically, social class basically reflect the income group of people
or buyer in a more better way. So it is very required for the retail organizations to be considered
the social factors before preparing any strategies. Along with that, consumer decision making
process also affected by the social factors which plays most crucial role within the retail sector.
Also under this social factors it also influence group have a great potential of influencing
consumer behaviour in many aspects. Social factors has divided into sub divided factors which
might impact the study. Like reference groups. According to Joo, (2015) reference groups have a
great potential of influencing consumer behaviour. Its impact varies across the products and
brands in order to understand the client behaviour in different context. Reference group
consumer generally play a role of influencer a leader. Which often an opinion leader. Family is
the another subdivided segment of social factor which is also a factors influencing . Such
dynamic factors can impact the buying decision making process of the buyers. Role and status of
an individual can be the other factor which might affect the overall buying process. Different
personalities of people and their background can influence or motivate to buy a product or
services. Role and status allows buyers to spend less or high on product or services accordingly.
According Pansari and Kumar, (2017) personal factor can also impact the consumer
decision making process. Personal factor is highly affect the buying process in which personal
biasses somehow impact the buying process. This factor is considered as the major influencer.
Like age and Life cycle stage, age of a consumer and his cycle are two most important sub
factors under personal factors. Age and life cycle factor can affect the decision making process
which is very common in which it clearly shows that this factors does affect consumer
behaviour.
Occupation of a buyer is affect the goods and services which consumer can buy. The
occupation group has above average interest in buying different products and services offered by
organizations. In fact organizations produces separate product for different occupational groups.
As according to Xie and Lee, (2015) self concept and personality is different and have different
and district personalities that can affect the buying behaviour because every buyer having
different choices and need. Their different personality effects their buying nature. So it has been
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observed from the discussion that every individual has their own choices and nature of
purchasing which might can differ the demand of the product.
Theme 3: Current trends in e-marketing
According to the Wang and Yu, (2017) There are various trends in e-marketing
companies which are affecting the customer buying behaviour. Trends are followed by the
companies for improving the marketing strategies of the products. Social media marketing plays
and vital role in marketing of the product because these products are shared through the social
media platforms and the various brands. Companies are trying to increase the sales of the
products through marketing of the products on social media, social media consists of sharing the
information to other people and through these e-marketing companies are promoting the products
by sharing the post and product details between the people. Author also stated that content
marketing is also used by the e- marketing companies which is promoting the products of the
companies. Content marketing is using the content of the companies and their products,
information provided in the content marketing must be correct and accurate which is influencing
the customers. Companies also uses artificial intelligence programs which is including the soft
wares which are used by the company. Chen and Shen, (2015) These soft wares are providing
security to the customers and also their personal details are stored in the soft wares which are
kept safe by the company, which is attracting the customers of the company. Some customers
cannot type what they want, so the companies has started voice search options for them who
cannot type which is attracting the customers and also this option is gaining the popularity.
Effective communication is important because it would satisfy the customer, so e-marketing
companies have started system of smarter chat which is helping the customers in effective
chatting with the customers. Gerrikagoitia and et.al., (2015) Live videos is more effective
because customers are attracted by the products qualities and customers are also remembered
what they have seen in the videos. Company need to personalize the contents, emails and the
products which would be delivered by the company. Influence marketing is focusing on the
customers and the products which would easily influence the customers of the company. Product
needs promotion and the qualities of the products must be presented in that way which is
attracting the customers of the company. Social messaging apps which includes what up and face
books, through these apps the company would send messages to the customers and customers are
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aware of the new products which are going to be launched in the market which is attracting the
customers.
Theme 4How consumer purchase decision making process can be improved
As per the Wiek and Lang, (2016) for businesses it is necessary to attract buyers and
improves their decision making process because every step consists in decision making process
is considered as the most important part. So before making product strategies retailer should
have need to analyse the need and make consumer aware about the product or services.
Basically, need recognition is the first process to of the buying process which has to be attractive
and productive. Search for information is the process where buyer looks for their goods and
services. Kumar, (2019) However this business task is essential for the people to better
understand the opportunities and task to be performed in a more better way. Besides that, search
for information during this stage customer want to find out their options. For this stage retail
businesses can promote their product or services which finds the best way to complete the
project output. Evaluation of alternatives this is the stage when a consumer is comparing options
to make the best choice. Liao, Molin and van Wee, (2017) Businesses also required an
alternative strategies to promote the product or services within the market. Along with that,
purchasing decision of consumer should always based or rely on the product services or branding
value. In other words, this has to be according to the business aim. Apart from this, purchasing
decision during this stage behaviour required effective time. Also retailer should identify the
problem statement which necessarily understand the needs and wants of the buyer. Along with
that, it also clearly identified with the aim objective to be more clearly identified and effective.
Plassmann and et.al., (2015) Buying decision process before can optimize customer
buying decision process which must be clear for the business goals. This is the method or task
which has to be clearly modified and effectively make the positive working outcomes. In order to
attract consumers and buyers company should need to focus on the needs of the buyers and
accordingly prepare the promotional strategies. Into post purchase behaviour it clearly mentioned
the business expectation and will either satisfied or dissatisfied. Bačík and et.al., (2016)
Therefore stages of the purchasing decision making process is majorly more effective for the
business to enhance (Zhang and Benyoucef, 2016).
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RESEARCH METHODOLOGY
Research Approach : Research approach is the method or study of inductive or deductive study.
Deductive approach tests the validity of assumptions. Deductive approach tests the validity of
assumptions in hand whereas inductive approach contributes to the emergence of new theories
and generalization (Mackey and Gass, 2015). There are two types of research approach inductive
and deductive. Inductive approach with the observation and theories are proposed towards the
end of the research process as a result of observation. Deductive approach is the method or study
of existing theory which is designed a research strategy to test hypothesis based on existing
theory. In order to survey this study study will be taking Inductive method of research approach
in order to start with the observation and theories which proposed the end of the research
process.
Research design : Research design is the important format of the study or a plan which
helps to address the research questions. Exploratory research does not aim to provide final and
conclusive answer to research questions. There are two types of research design exploratory and
conclusive research design types (Bresler and Stake, 2017). Exploratory research method can
useful to better understand the more analysing and influencing business task. Moreover,
Research methods : Research methods is the best way to contribute and influencing the
research goals and objectives of the study in a better way. Research design is a plan to analyse
and interpret the data and information which different business context to analyse and get the
best outcome from the study. There are different kinds of goals and objectives which mainly
work more effectively done in an efficient manner. On the other side, research methods is
depend on the type of research topic of the study. Applied research also known as action research
aim to find solution for immediate and specific problems. Findings a fundamental studies cannot
be used to solve immediate and specific business problems. Along with that, there are different
kind of research type which helps to determine the best objectives and gain the deep
understanding outcomes (Ledford and Gast, 2018). The basic aim of the all research method is
to evaluate the findings and gathered all the specific information and goals to determine the best
outcomes.
Data collection : It is the process that are used by researcher to measure information and
to gather insight detail about subject matter. In the field of study, it is very important for the
scholar that to have accurate detail about topic and have in-depth understanding related to subject
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