KUVEMPU UNIVERSITY

Institute of Management Studies & Research

Jnana Sahyadri, Shankaraghatta – 577 451

Shivamogga District, Karnataka

DISSERTATION REPORT ON

“A STUDY ON ROLE OF DIGITAL MARKETING ON CONSUMER

BUYING BEHAVIOUR”

Submitted by

Mr. Gautam Gopal Devadiga

Reg. No. P06MC21M0023

MBA IV SEM (Finance & Marketing)

Institute of Management Studies & Research

Kuvempu University, Jnana Sahyadri

Shankaraghatta – 577 451

Under the guidance of

Prof. Hiremani Nayak

Faculty Member

Institute of Management Studies and Research

Jnana Sahyadri Campus,

Kuvempu University,

Shankaraghatta – 577451

Shimogga, Karnataka

2021-22
 KUVEMPU UNIVERSITY

Institute of Management Studies & Research

Jnana Sahyadri, Shankaraghatta – 577 451

Shivamogga District, Karnataka

This is to certify that Mr. Gautam Gopal Devadiga bearing Reg.No.

P06MC21M0023 a bonfide student of the Institute of Management Studies &
Research, Jnana Sahyadri, Shankaraghatta, during the year 2022–23 has
satisfactorily completed the Dissertation Report entitled “A STUDY ON
ROLE OF DIGITAL MARKETING ON CONSUMER BUYING
BEHAVIOUR” and submitted in partial fulfilment of requirement for award of
the PG degree of “MASTER OF BUSINESS ADMINISTRATION”.

Place:- Shankaraghatta

Date:-

PROF. H.N RAMESH

Chairman
Institute of Management Studies & Research
Jnana Sahyadri, Shankaraghatta.
KUVEMPU UNIVERSITY
Institute of Management Studies & Research

JnanaSahyadri,

Shankaraghatta – 577451

Shivamogga District, Karnataka

This is to certify that the Dissertation Report entitled “A STUDY ON ROLE OF

DIGITAL MARKETING ON CONSUMER BUYING BEHAVIOUR”
Submitted to Institute of Management Studies & Research by
Mr. Gautam Gopal Devadiga for the award of P.G. DEGREE IN MASTER
OF BUSINESS ADMINISTRATION for his original work done under my
guidance and it has not been previously formed the basis for the award of any Degree,
Diploma Associate ship, Fellowship or other similar title and it represents wholly his
independent work.

Place: Shankaraghatta
Date :

Prof. Hiremani Nayak

Faculty Member
Institute of Management Studies and Research
Jnana Sahyadri Shankaraghatta
 DECLARATION

I hereby declare that this Dissertation Report entitled “A STUDY ON ROLE

OF DIGITAL MARKETING ON CONSUMER BUYING BEHAVIOUR”
is prepared by me under the guidance of Prof. Hiremani Nayak. Faculty
Member, Institute of Management Studies & Research, Jnana Sahyadri,
Shankaraghatta, Kuvempu University, in partial fulfilment for the award of PG
degree in ‘MASTER OF BUSINESS ADMINISTRATION’.

I further declare that this Dissertation Report is the result of my own

work and has not been submitted to any other University or Institute for the
award of any other degree.

Place: Shankaraghatta

Date:

Mr.Gautam Gopal Devadiga

Reg. No:P06MC21M0023
 ACKNOWLEDGEMENT

“Experience is the best teacher”. The knowledge is one of the most

important tools. But practical knowledge is must in each and every field of life
from this point of report is important and necessary for management student.
Theoretically knowledge is proved right only when it is applicable on practical
base.

I express deep sense of gratitude to my honourable Chairman Prof. H.N

RAMESH and also, I would like to thank for permitting me to complete this
dissertation report.

I endure humble and a sincere thanks to Prof. Hiremani Nayak.

Faculty Member of the department, Institute of Management Studies and
Research for this course of dissertation work.

Finally, I wholeheartedly thank my family members and friends all who

helped me directly and indirectly to undertake this dissertation project work
with great success.

Place: Shankaraghatta

Date: Mr.Gautam Gopal Devadiga

Reg. No:P06MC21M0023
 CONTENT

PAGE
SL.NO PARTICULAR NUMBER

1 DIGITAL MARKETING

2 RESEARCH DESIGN

3 CONCEPTUAL FRAMEWORK-CONSUMER
BEHAIOR

4 DATA ANALYSIS AND INTERPRETATION

5 FINDINGS, SUGGESTIONS AND

CONCLUSION

SL.NO PARTICULAR PAGE

NUMBER
4.1 Table and chart gender show of the respondents
4.2 Table and chart shows age of the respondents
4.3 Table and chart shows educational qualification
of the respondents
4.4 Table and chart shows monthly income
4.5 Table and chart shows aware about digital
marketing
4.6 Table and chart shows consumer how
much spend normally in purchasing
through digital marketing at once
4.7 Table and chart shows consumer frequency of
using digital marketing
4.8 Table and chart shows consumer approximate
time spent on digital media platforms per week
4.9 Table and chart shows consumer which source
refer the most to get awareness of various brands

4.10 Table and chart shows benefits does digital

marketing offer over the traditional marketing
4.11 Table and chart shows digital marketing influence
on consumer purchase decision

4.12 Table and chart shows which factor consumer

consider while purchasing through digital
marketing
4.13 Table and chart shows are the digital marketing
provides good service to customers.

4.14 Table and chart shows according to customer,

how much safer digital marketing.
4.15 Table and chart shows customer satisfaction of
the services of digital marketing tools.
4.16 Table and chart shows what loopholes does digital
marketing carry over traditional marketing tools.
4.17 Table and chart shows consumer opinion about
the delivery services of digital marketing.
4.18 Table and chart shows digital marketing is
dominating traditional way of businesses on
customer opinions.
Table and chart shows that digital media
4.19 platforms motivate customer to purchase
products.
4.20 Table and chart shows consumer which one
frequent visit sites.

4.21 Table and chart shows customer satisfaction with

respect to factors of digital marketing.

4.22 Table and chart shows customer opinion

statement base.

4.23 Table and chart shows Effective marketing

technique.
 CHAPTER – 1
DIGITAL MARKETING
1.1 Introduction

1.2 Meaning and Definition

1.3 History of digital marketing

1.4 Some facts about Indian digital industry

1.5 Channels of digital marketing

1.6 Importance of digital marketing

1.7 Factors affecting digital marketing

1.8 Sector wise using of digital marketing

1.9 Pros and cons of digital marketing

1.10 Models of digital marketing

1.1 Introduction
Digital marketing is often referred to as 'online marketing', 'internet marketing' or 'web
marketing'. The term digital marketing has grown in popularity over time, particularly in
certain countries. In the USA online marketing is still prevalent, in Italy is referred as web
marketing but in the UK and worldwide, digital marketing has become the most common
term, especially after the year 2013.

The way in which digital marketing has developed since the 1990s and 2000s has changed
the way brands and businesses utilize technology and digital marketing for their marketing.
Digital marketing campaigns are becoming more prevalent as well as efficient, as digital
platforms are increasingly incorporated into marketing plans and everyday life, and as people
use digital devices instead of going to physical shops. The world is super-connected
nowadays and all things considered, marketing and advertising are no more the same as they
once were. This is particularly valid because of the ascent of online networking, which has
changed how organizations speak with potential and existing customers.

1.2 Meaning and Definition

Meaning

Digital marketing is any form of marketing products or services, which involves electronic
devices. It can be both online and offline. Digital marketing is an umbrella term for the
marketing of products or services using digital technologies, mainly on the Internet, but also
including mobile phones, display advertising, and any other digital medium.

Definitions

According to institute of direct marketing-“the use of internet and related digital

information and communication technologies to achieve marketing objectives”

According to CAM Foundation -“Digital Marketing is a broad discipline, bringing together

all forms of marketing that operates through electronic devices – online, on mobile, on-
screen. Over the years, digital marketing has developed enormously, and it continues to do
so”
1.3 History of digital marketing

The term Digital Marketing was first used in the 1990s. The digital age took off with the
coming of the internet and the development of the Web 1.0 platform. The Web 1.0 platform
allowed users to find the information they wanted, but did not allow them to share this
information over the web. Up until then, marketers worldwide were still unsure of the digital
platform. They were not sure if their strategies would work since the internet had not yet seen
widespread development.

In 1993, the first clickable banner went live, after which Hot Wired purchased a few banner
ads for their advertising. This marked the beginning of the transition to the digital era of
marketing. Because of this gradual shift, the year 1994 saw new technologies enter the digital
marketplace. The very same year, Yahoo was launched.

Also known as "Jerry's Guide to the World Wide Web" after its founder Jerry Yang, Yahoo
received close to 1 million hits within the first year. This prompted wholesale changes in the
digital marketing space, with companies optimizing their websites to pull in higher search
engine rankings. 1996 saw the launch of a couple of more search engines and tools like Hot
Bot, Look Smart, and Alexa.

1998 saw the birth of Google. Microsoft launched the MSN search engine and Yahoo brought
to the market Yahoo web search. Two years later, the internet bubble burst and all the smaller
search engines were either left behind or wiped out leaving more space for the giants in the
business. The digital marketing world saw its first steep surge in 2006, when search engine
traffic was reported to have grown to about 6.4 billion in a single month. Not one to get left
behind, Microsoft put MSN on the backburner, and launched Live Search to compete with
Google and Yahoo.

Sensing an opportunity, Google began to expand, introducing such products as AdWords,

which are 3 line ads that show up at the top or to the right of search engine results, and
AdSense -which is a cost-per-click advertising scheme. In time, Google realized the value of
analyzing the content they received and then target ads based on the interests of the users, and
thus became a major player in the world of business.
Then came Web 2.0, where people became more active participants rather than remain
passive users. Web 2.0 allowed users to interact with other users and businesses. Labels like
‘super information highway’ began to be applied to the internet. As a result, information flow
volumes –including channels utilized by digital marketers- increased manifold and by 2004,
internet advertising and marketing in the US alone brought in around $2.9 billion.

Soon, social networking sites began to emerge. My Space was the first social networking site
to arrive, soon followed by Facebook. Many companies realized all these fresh new sites that
were popping up were beginning to open new doors of opportunities to market their products
and brands. It opened fresh avenues for business, and signaled the beginning of a new chapter
to business. With new resources, they needed new approaches to promote their brands &
capitalize on the social networking platform.

The cookie was another important milestone in the digital marketing industry. Advertisers
had begun to look for other ways to capitalize on the fledgling technology. One such
technique was to track common browsing habits and usage patterns of frequent users of the
internet so as to tailor promotions and marketing collateral to their tastes. The first cookie
was designed to record user-habits. The use of the cookie has changed over the years, and
cookies today are coded to offer marketers a variety of ways to collect literal user data.

Products marketed digitally are now available to customers at all times. Statistics collected by
the Marketing tech blog for 2014 show that posting on social media is the top online activity in the
US. The average American spends 37 minutes a day on social media. 99% of digital
marketers use Facebook to market, 97% use Twitter, 70% use Google+, 69% use Pinterest
and 59% use Instagram. 70% of B2C marketers have acquired customers through Facebook.
67% of Twitter users are far more likely to buy from brands that they follow on Twitter.
83.8% of luxury brands have a presence on Pinterest. The top three social networking sites
Used by marketers are LinkedIn, Twitter and Facebook.

The digital market is in a constant state of flux. A digital marketing professional must find
ways to keep up with this change. They need to be able to keep an eye out for emerging
trends and the development of newer and smarter Search Engine Algorithms. After all,
nobody can afford to get left behind in this race.

1.4 Some facts about Indian Digital Marketing Industry

As per a report by IAMAI and Boston consulting group, India has one of the largest and
fastest growing populations of Internet users in the world—481 million as of a growth of
11.34% over December 2016 estimated figures. The number of internet users is expected to
reach 500 million by June 2018.

According to Direct Marketing Association, Digital Marketing Industry is worth $220.38

billion by 2019.

According to a report published in the Hindustan Times, New Delhi digital advertising space
in India is worth Rs. 6000 crore and video is Rs. 1600 crore of that. In 2016 the digital ad
space will grow to Rs. 8100 crore and video will grow faster than search and classified.

According to a research firm E-marketer ecommerce sales in India are expected to grow from
$14 billion in 2015 to $55 billion in 2018. India has seen the fastest growth in retail
ecommerce among Asia-Pacific countries, surging 133.8% in 2014 and 129.5% in 2015. The
combined gross merchandise value, or total value of sales of country's top three ecommerce
places i.e. (Flipkart, Amazon and Snapdeal) in 2015 was $13.8 billion exceeded that of the
top 10 offline retailers, which stood at $12.6 billion for the same period.

1.5 Channels of digital marketing

1. Search Engine Optimization (SEO)
Search engine optimization (SEO) is the process of affecting the online visibility of
a website or a web page in a web search engine's unpaid results—often referred to as
"natural", "organic", or "earned" results. In general, the earlier (or higher ranked on the search
results page), and more frequently a website appears in the search results list, the more
visitors it will receive from the search engine's users; these visitors can then be converted into
customers. SEO may target different kinds of search, including image search, video
search, academic search, news search, and industry-specific vertical search engines. SEO
differs from local search engine optimization in that the latter is focused on optimizing a
business' online presence so that its web pages will be displayed by search engines when a
user enters a local search for its products or services. The former instead is more focused on
national or international searches.

2. Search engine marketing (SEM)

Search engine marketing (SEM) is a form of Internet marketing that involves the promotion
of websites by increasing their visibility in search engine results pages (SERPs) primarily
through paid advertising. SEM may incorporate search engine optimization (SEO), which
adjusts or rewrites website content and site architecture to achieve a higher ranking in search
engine results pages to enhance pay per click (PPC) listings.

3. Content marketing

Content marketing is a form of marketing focused on creating, publishing and distributing

content for a targeted audience online. It is often used by businesses in order to:

 Attract attention and generate leads

 Expand their customer base
 Generate or Increase online sales
 Increase brand awareness or credibility
 Engage an online community of users

Content marketing means attracting and transforming prospects into customers by creating
and sharing valuable free content. The purpose of content marketing is to help companies
create sustainable brand loyalty and provide valuable information to consumers, as well as
create a willingness to purchase products from the company in the future. This relatively new
form of marketing does not involve direct sales. Instead, it builds trust and rapport with the
audience.

4. Affiliate marketing
Affiliate marketing is commonly confused with referral marketing, as both forms of
marketing use third parties to drive sales to the retailer. The two forms of marketing are
differentiated, however, in how they drive sales, where affiliate marketing relies purely on
financial motivations, while referral marketing relies more on trust and personal
relationships.

5. Email marketing
Email marketing is the act of sending a commercial message, typically to a group of people,
using email. In its broadest sense, every email sent to a potential or current customer could be
considered email marketing. It usually involves using email to send advertisements, request
business, or solicit sales or donations, and is meant to build loyalty, trust, or brand awareness.
Marketing emails can be sent to a purchased lead list or a current customer database. The
term usually refers to sending email messages with the purpose of enhancing a merchant's
relationship with current or previous customers, encouraging customer loyalty and repeat
business, acquiring new customers or convincing current customers to purchase something
immediately, and sharing third-party ads.

6. Social media marketing

Social media marketing is the use of social media platforms and websites to promote a
product or service. Although the terms e-marketing and digital marketing are still dominant in
academia, social media marketing is becoming more popular for both practitioners and
researchers. Most social media platforms have built-in data analytics tools, which enable
companies to track the progress, success, and engagement of ad campaigns. Companies
address a range of stakeholders through social media marketing, including current and
potential customers, current and potential employees, journalists, bloggers, and the general
public. On a strategic level, social media marketing includes the management of a marketing
campaign, governance, setting the scope (e.g.more active or passive use) and the
establishment of a firm's desired social media "culture" and "tone."

To use social media effectively, firms should learn to allow customers and Internet users to
post user-generated content (e.g., online comments, product reviews, etc.), also known as
"earned media," rather than use marketer-prepared advertising copy. While often associated
with companies, as of 2016, a range of not-for-profit organizations and government
organizations are engaging in social media marketing.

7. Mobile marketing

Mobile marketing is multi-channel online marketing technique focused at reaching a specific

audience on their smart phone, tablets, or any other related devices through websites, E mail,
SMS and MMS, social media or mobile applications. Mobile marketing can provide
customers with time and location sensitive, personalized information that promotes goods,
services and ideas. In a more theoretical manner, academic Andreas Kaplan defines mobile
marketing as "any marketing activity conducted through a ubiquitous network to which
consumers are constantly connected using a personal mobile device".

8. Pay per click (PPC) marketing

Pay-per-click is commonly associated with first-tier search engines (such as Google

AdWords and Microsoft Bing Ads). With search engines, advertisers typically bid
on keyword phrases relevant to their target market. In contrast, content sites commonly
charge a fixed price per click rather than use a bidding system. PPC "display" advertisements,
also known as "banner" ads, are shown on web sites with related content that have agreed to
show ads and are typically not pay-per-click advertising. Social networks such as Facebook
and Twitter have also adopted pay-per-click as one of their advertising models

Along with the above, there are much more channels through which digital marketing is
carried on.

1.6 Benefits and Importance of digital marketing

1. Opens up growth options for small businesses.

Importance of digital marketing for business lies in the option to select the method of
marketing as per the budget and reach a wider audience at a lesser cost. Even a decade back
getting a product marketed especially for a small business was a task in itself. Most of the
expensive models were just out of their reach and they had to resort to small level methods
where the guarantee of success was close to negligible. The digital modes of marketing are
customizable and hence much cheaper.

2. The conversion rate is higher.

The businesses that are using online as the preferred mode of marketing are able to measure
the conversion rate through real time using a simple method. That is identifying the
percentage of viewers who get converted into leads and then subscribers and in the end
finally purchasing the service or product. SEO, Social media marketing and Email marketing
are methods which have a high conversion rate as they are able to generate a quick and
effective communication channel with the consumer. Surprisingly all the traffic that a
businessman may get on his website may not be fruitful hence digital marketing lets him
reach out to only those who have the need for that kind of service hence offering better lead
conversions.

3. Customer support has become a priority

For any business to survive the one thing that they really need to work upon is establishing a
reputation which is impeccable. In the past few years, it has become evident that customers
will always prefer a company which does not have any scandals associated with it.
Importance of Digital marketing today lies in offering us multiple ways to establish a
personal rapport with our customer base. Be it email marketing or social media you can
always offer the customer solutions to their problems and make them relate to your product
by even providing live chat access. Website and social media page can easily be converted
into a place where the consumer can ask queries, give suggestions and hence take the
association with you on a positive level.

4. Get connected to the mobile customers

After Google mobile first update nearly almost all the websites these days are made in a
manner that they are easily viewable on the mobile as well. This is because that almost all
customers have access to a smartphone and most of them even look for products on the same.
In many instances, customers have changed their purchase plan and picked up a product from
a different brand just because they were convinced that the new product has a much better
functionality.

5. Increase the trust for the brand

The presence of brand and service on multiple platforms gives the option to customers to rate
services as per their level of experience. A positive and favorable review left by a satisfied
customer causes the new ones to immediately convert. These days contacting the social
media page of a brand for issue resolution and other matters is a common thing to do. This, in
turn, leads to the building up of strong image of the brand in the minds of the new consumers
hence leading to more conversions.

6. Better Return on Investment

While earlier budget allocations were done individually to handle each kind of marketing
medium the situation becomes more progressive now. Being digital businessmen have access
to packages at different levels of costing hence ensuring that they can pick up one which suits
their budget best. Even a small level of investment done in a mode like email marketing has
the potential to deliver results in terms of customer’s engagement. Using web analytics helps
the business owners know whether website is providing optimal ROI. While the website may
not be generating revenue for them directly they can always track conversion rate of enquiries
made through email and telephone calls to sales.

7. Digital marketing is cost effective

A small business needs to save up on its resources before it finally goes into the green zone
and starts making profits. Digital marketing gives the scope to reach out to many customers at
the same time and that too within budget. Businessmen can plan their marketing strategy such
that they only use modes which lie in budget. If there is a desire not to extend the budget then
they can always target niche audience who they know would definitely like and appreciate
the concept of offering.

8. Potential to earn higher revenues

Since the amount of money invested is less and the ROI more the scope to make money is
much higher. As per a study conducted by IPSOS Hong Kong in accordance with Google has
shown that compared to traditional methods, digital marketing is known to generate 2.8 times
more revenue. This coupled with the fact that the conversion rates here are much high ensure
that business men are minting money as soon as they enter the fray. For organizations which
are formulating their strategies keeping money in mind, this also means a faster movement
towards the growth path they want to be on.

1.7 Factors affecting digital marketing

Factors affecting digital marketing can be listed as follows:

Target Market: The first and foremost thing in my viewpoint is deciding the target market
for digital marketing. You cannot randomly serve your advertisements and online content to
the millions of internet users available online because that would only lead to more costs for a
firm. Also, the content must be aligned to the suitability and interests of your target market.

Channels: Based on the channel decision, a business will be able to target its potential
customers. The online marketing domain covers a wide spectrum of platforms, and many
more are emerging with time. A business needs to do conduct a cost –benefit analysis and
rank the various mediums on the basis of their cost effectiveness.

Technology: One of the most important factors affecting digital marketing is technology

which needs to be reviewed and updated on a continuous basis. Your in-house internet

marketing team must have the technological knowhow. Beyond technical difficulties,

companies often have to invest in equipment and services to implement their digital

marketing campaigns. For example, a company that wants to do video marketing needs a
digital camera, lights and audio recording equipment and the expertise to use it, or must pay a

studio to handle the video editing and recording.

Big Data: Big Data lets you answer the what, how, when and why of digital marketing. Big

Data will continue to be an all-powerful and overarching topic among business planners and

marketing strategists. As businesses realize that customer behavior and usage data is pivotal

for leveraging their overall performance and profit, more businesses will adopt Big Data

policies and data acquisition and integration technologies.

Content: Your digital marketing efforts must include language and images that reflect your

target market and resonate with them. Studies have shown that effective content marketing

contributes in a great deal to the improvement of consumer conversion and retention.

Social media: Social media presence of a business matters a lot. Businesses these days

maintain active and healthy social media accounts of their businesses as well ask their

employees to do so to engage their customers. Many companies launch online campaigns

through social media platforms to attract new customers and retain the existing ones.

Talent: Everything will out of place if the talent and skills of your digital marketing team are

not up to the mark. The human element of digital marketing is actually its backbone. The
knowledge and experience you and your team have in digital marketing influences whether or

not you incorporate it into your overall marketing strategy. Having a talented workforce is an

asset!

Budget: Digital marketing is cheaper than traditional marketing, but it is definitely not free.

Hence, there arises a need to prepare a well-defined budget for digital marketing. A marketer

must decide and appropriate mix of organic as well as paid promotions. If budgeting is an

issue; as it might be for smaller firms, it is advisable for them to outsource their digital

marketing to a business who specializes in this.

 1.8 Sector wise using of digital marketing

1. Law industry

 It may seem a bit surprising but it is true that Law Industry is using digital marketing
campaigns quite successfully and topping the charts of industries using digital marketing.
As indicated by Green target’s State of Digital and Content Marketing Survey, 1 in 4 law
offices has a well targeted content marketing system.
 Law offices are emerging more powerfully in blogging. Law Experts are smart people
who spend significant time in communication. In particular, they’re great at clarifying
how the law functions and how to manipulate your way through a contention. On their
individual firms’ web journals, on LinkedIn, and on popular sites like Medium and
Huffington Post, these lawyers are composing useful blog entries on different legal
matters and topics.
 Individuals who seek information on legal matters discover them and read such blogs,
and thus such legal firms pick up their customers. It’s a methodology that gives a strong
ROI in light of the fact that, for these law offices, they’re not contributing lots of money,
yet they’re receiving good ROI- thanks to conversion oriented digital marketing for
industries.

2. Marketing industry

 Fundamentally, everything an industry does via web-based networking media to

interface with clients is a type of digital marketing. Consequently, it follows that the
marketing industry would be more capable at utilizing digital network of their target
audiences and potential buyers via digital frameworks.
 Different channels of digital marketing offer variety of marketing tactics that help
marketing industry reap great profits. As you most likely know, video advertising has
rapidly turned out to be one of the most astounding types of online networking
content and more than 60 percent of advertisers are as of now utilizing it.
 According to stats:
  95+ % of marketers utilize social media marketing to market their products and
services
 90+ % of marketers trust online networking is imperative to their industry
 More than 80 percent of marketers have blended digital marketing for Industry along
with their traditional marketing exercises.

3. Health industry

 Whenever we have a question about our wellbeing or a health issue, what’s the main
thing we do? – We look at online health portals to find valuable information.
 As per the Pew Research Center’s Health Online 2013 study, 77 percent internet users
go online and check for solutions that can resolve their health related problems.
 While specialists are unmistakably still a critical part of the medical system, the plain
truth is that they’re not the primary spot individuals go to get to know the health
information. That is the reason a digital marketing approach for health industry is so
essential.
 A decent site befitting for digital marketing for health industry, a strong web-based
social networking, simple to understand infographics and health-related information
that has been advanced for SEO all make a decent impression and acquire more
number of patients.

4. Retail industry

 The retail industry will dependably be close to the highest point of the top industries
using Digital Marketing.

 Bigger retail industries – like Reliance Fresh, Fabindia, Aditya Birla Retail Ltd– are
for sure quite effective in using digital marketing for retail industry, however it’s
more fascinating to watch small retailers succeed, as well.

 The greatest advantages for these industries incorporate having the capacity to get
input on new items and settle customer complaints before they end up being a major
issue.

 India Retailing is a main site for data, examination, analysis and news on Retail
Business in India and Indian Retail Industry.

5. Automobile industry
  Marketing has dependably been an immensely critical part of automotive industries.
From TV ads, magazine ads to daily paper promotions, all have been the powerful
ways of promoting automobile companies. Of late, digital marketing has turned out to
be one of the automotive industries’ most imperative channels for achieving potential
clients and converting them.

 According to eMarketer, monetary expenditure on promoting in conventional media

by major automotive companies is taking after a descending pattern, while spending
on digital marketing is expanding each year. Truth be told, from 2016 to 2017, it
climbed right around 35 percent.

 An essential purpose behind this development is that digital marketing enables

automakers to tailor-fit the marketing strategies for target audiences of particular
demographics – on account of personal information collected via different analytical
tools of digital marketing.

 By using digital marketing for automobile industry, automakers are conveying the
advertising directly to their potential buyers instead of waiting for prospects to come
to their advertisements.

6. Education and Training industry

 One of the most astounding industries using digital marketing is education and
training.
 Different social media channels like Facebook let students, instructors, institutions,
trainers and consultants interact with each other in ways that were never conceivable
before.
 Universities and schools, specifically, have aced the utilization of digital marketing.
Many of them utilize organic and paid publicizing on digital channels to reinforce the
participation of students in different academic programs.
 Same colleges utilize social media platforms as stages for publicizing on-going
occasions, new educational modules, and so on. After graduation, these web-based
social networking has also become an instrument of alumni fundraising.
  Truth be told, another review demonstrates that 57 percent of schools utilized online
networking as a key part of their fundraising events.

7. Entertainment industry

 Digital Media has turned into the best place for entertainment industry to share a wide
range of data and related information such as- teasers, trailers, photographs, behind
the scenes, and live recordings. In addition, digital channels are the places where
marketers plant thoughts in the heads of the followers e.g. be ready to DVR this show,
go see this film, review movie online and educate your companions how much you
enjoyed the movie.
 Digital channels provide a platform where personal data of your followers are easily
available which is further combined with analytics to advertise particular
entertainment item to specific target audiences. ROI for entertainment organizations
using digital marketing is higher than with conventional media.

8. Food and Restaurant industry

 We have a genuine enthusiastic association with the food we adore, and that is why
food and restaurant industry is prominently using digital channels to let people know
how they can get their best food at best prices in the most convenient manner
possible. Food and restaurant industry professionals have responded enthusiastically
to these digital channels with picture loaded online networking campaigns containing
huge amounts of emotional connection that enhances customer engagement.
 Digital Marketing strategies enable clients to be attracted as they are made to feel that
the organizations really think about their eating inclinations, and the outcomes are
really noteworthy.
 There are substantial numbers of restaurants that run profoundly effective web-based
social networking profiles and conversion-oriented websites. Actually, a current study
recommends that more than 8 out of 10 restaurants either as of now utilize online
networking or plan on utilizing it as a key marketing tactics.
 Restaurants utilizing social media marketing are concentrating on making viral
campaigns by using visually attractive posts. The real advantage for these restaurant
owners is that they can rapidly construct a positive branding with a huge popularity
within a few days, something that otherwise may take months or years.
9. Fashion industry

 Digital Marketing channels are amazingly profitable assets for the fashion industry in
view of the quick speed at which content goes on Facebook, Instagram, Pinterest,
Twitter and other digital platforms. New fashion trends and styles can be shared to a
huge number of individuals in a fraction of seconds.
 The best fashion brands via web-based networking media are the ones that have aced
the task of making visually appealing pictures that develop an emotional connection
with clients to resonate a favorable response from the clients.
 Fashion brands observe social media marketing to be an intense research instrument.
They utilize it to discover what styles their target audiences appreciate and what
they’re wearing.

10. Real estate industry

 Real Estate industry is the last one in my list of industries using digital marketing.
Brokers, Specialists, Agents, developers, engineers, and property dealers all use
digital network to get their properties before their prospects. Digital marketing for real
estate industry seems more profitable than traditional marketing methods.
 Real Estate Marketers can utilize Facebook to make exceptionally focused ads, or can
request companions to share properties on their profiles. This is a simple approach to
get individuals discuss about your listings and properties. Facebook is right now the
most favorable web-based social networking stage for real estate marketing, yet
Instagram could also be effectively utilized.
 The real estate industry in India has sufficiently developed where purchasers are
doing broad research online before really making their final decision. In addition,
purchasers in the market are scanning for the property dealers and brokers on the web,
which make the digital marketing considerably more lucrative for real estate industry.

1.9 Pros and cons of digital marketing

Pros of digital marketing are,

 Customers Stay Updated

The internet has changed customer shopping habits and with rapid technological
developments accessing the internet has become easier than ever. People can access the
internet whenever and wherever they like.

 Instant Comparisons - Customers Can Compare Prices and Features

One of the greatest advantages for the customer is that they can compare products or services
they wish to purchase from the comfort of their own homes. Instead of having to visit a
number of different retail outlets, the user simply has to open different internet window tabs
to compare prices or features of the product/service they wish to purchase. Many retailing
websites offer the facility where different products they sell can now be easily compared.
There is also price comparison websites that customers can use to get the best possible price
for their products.

 Clear Product Information for the Customer

Websites offer clear and consistent product information to all internet users. There is little
chance of misinterpretation or mishearing what the sales person said as in a retail store. The
internet has comprehensive product information whereas in a shop the customer is reliant in
the knowledge of their sales advisor.

 Transparent Pricing Available 24/7

The price of products can be easy for the consumer to find out ; customers can access pricing
information from a range of sellers with a few internet clicks. Customers can take advantages
of pricing that may change regularly or take advantages of special offers that last for a limited
period as they can access pricing information 24 hours a day/7 days a week. Whereas prices
for products offered for sale in retail premises can only be accessed whilst the store (or when
store telephone lines are) open.

 Track Your Purchase and Choose Delivery Dates

Many websites allow consumers to track their purchase from when it is ordered through to
when they are dispatched and delivered to them. This reassures the consumer and makes
them feel that they are obtaining a good service online. Some sellers also allow the consumer
to choose the delivery address for each purchase and select their own delivery date and time.

 Reduction in Personal Carbon Footprint

Looking after the environment and the world we live in is important for many customers.
When consumers shop online they use their cars less and their personal carbon footprint is
reduced. Retailers can support carbon reduction by sorting deliveries so that purchases by
customers living close to each other can be delivered on the same day.

 Shopping 24 hours A Day 7 Days A week (24/7)

There is no time restriction on when a consumer can shop online; the internet is available all
day everyday. Many online sales now start at midnight on a particular day encouraging
customers to shop all hours of the day. For example many retailers will start post-christmas
sales on the 26th of December at 00.00.

Cons of digital marketing are,

The major disadvantages of online shopping are as follows.

1. Delay in delivery

Long duration and lack of proper inventory management result in delays in shipment. Though
the duration of selecting, buying and paying for an online product may not take more than 15
minutes; the delivery of the product to customer’ s doorstep takes about 1-3 weeks. This
frustrates the customer and prevents them from shopping online.

2. Lack of significant discounts in online shops

Physical stores offer discounts to customers and attract them so this makes it difficult for e-
retailers to compete with the offline platforms.

3. Lack of touch and feel of merchandise in online shopping

Lack of touch-feel-try creates concerns over the quality of the product on offer. Online
shopping is not quite suitable for clothes as the customers cannot try them on.

4. Lack of interactivity in online shopping

Physical stores allow price negotiations between buyers and the seller. The show room sales
attendant representatives provide personal attention to customers and help them in purchasing
goods. Certain online shopping mart offers service to talk to a sales representative,

5. Lack of shopping experience

The traditional shopping exercise provides lot of fun in the form of show-room atmosphere,
smart sales attendants, scent and sounds that cannot be experienced through a website.
Indians generally enjoy shopping. Consumers look forward to it as an opportunity to go out
and shop.

6. Lack of close examination in online shopping

A customer has to buy a product without seeing actually how it looks like. Customers may
click and buy some product that is not really required by them. The electronic images of a
product are sometimes misleading. The color, appearance in real may not match with the
electronic images.

People like to visit physical stores and prefer to have close examination of good, though it
consumes time. The electronic images vary from physical appearance when people buy goods
based on electronic images.

7. Frauds in online shopping

Sometimes, there is disappearance of shopping site itself. In addition to above, the online
payments are not much secured. So, it is essential for e-marketers and retailers to pay
attention to this issue to boost the growth of e-commerce. The rate of cybercrimes has been
increasing and customers’ credit card details and bank details have been misused which raise
privacy issues.
 1.10 Models of digital marketing

RACE planning system

RACE Planning is a practical tool focused on increasing the commercial returns from digital
marketing across the RACE conversion funnel shown at the end of this section. It features an
initial planning phase to create a strategy with defined Objectives and KPIs for evaluation.
Best practices are then developed to manage and optimize communications in an integrated
way across the many online and offline customer touchpoints that are involved when a
consumer selects a product or service today.

RACE planning system

RACE Planning is a practical tool focused on increasing the commercial returns from digital
marketing across the RACE conversion funnel shown at the end of this section. It features an
initial planning phase to create a strategy with defined Objectives and KPIs for evaluation.
Best practices are then developed to manage and optimize communications in an integrated
way across the many online and offline customer touchpoints that are involved when a
consumer selects a product or service today.

 4Cs for marketing communications

The 4Cs (Clarity, Credibility, Consistency, Competitiveness) is most often used in marketing
communications and was created by David Jobber and John Fahy in their book ‘Foundations
of Marketing’ (2009). Once a business has segmented its marketing and identified the target
audience, the next stage is to position the business. To successfully achieve this, the 4Cs is a
useful tool to create a positioning statement or to build an online value proposition.

 Technology Acceptance Model

The Technology Acceptance Model (TAM) is largely credited to Fred Davis in 1989, when
he was part of the Computer and Information Systems, Graduate School of Business
Administration at the University of Michigan in the US. This was at a time when computers
were being introduced into the workplace and Davis was looking for a way to predict and
explain system use both for vendors and IT managers. TAM was designed to measure the
adoption of new technology based on positive attitudes towards two measures:

o Perceived usefulness
o Perceived ease of use

Many businesses are developing apps, creating online portals and extending their websites to
incorporate ‘login’ areas. The TAM is an ideal tool to test with a small group, before making
major investments and rolling out a system which may not be adopted.

 BCG Matrix Model

The Boston Consulting group’s product portfolio matrix (BCG matrix) is designed to help
with long-term strategic planning, to help a business consider growth opportunities by
reviewing its portfolio of products to decide where to invest, to discontinue or develop
products. It’s also known as the Growth/Share Matrix. The Matrix is divided into 4 quadrants
derived from market growth and relative market share, as shown in the diagram below.

How to use the BCG matrix:

 Dogs: The usual marketing advice is to remove any dogs from your product portfolio
as they are a drain on resources. For example, in the automotive sector, when a car
line ends, there is still a need for spare parts. As SAAB ceased trading and producing
new cars, a whole business has emerged providing SAAB parts.

 Question marks: Named this, as it’s not known if they will become a star or drop
into the dog quadrant. These products often require significant investment to push
them into the star quadrant. The challenge is that a lot of investment may be required
to get a return. For example, Rovio, creators of the very successful Angry Birds game
has developed many other games you may not have heard of. Computer games
companies often develop hundreds of games before gaining one successful game. It’s
not always easy to spot the future star and this can result in potentially wasted funds.
  Stars: Can be the market leader though it requires ongoing investment to sustain.
They generate more ROI than other product categories.

Cash cows: ‘Milk these products as much as possible without killing the cow!. Often mature,
well-established products. The company Procter & Gamble which manufactures Pampers
nappies to Lynx deodorants has often been described as a ‘cash cow company’.

Reference:

Websites
https://en.wikipedia.org/wiki/Digitalmarketing
https://blog.hubspot.com/marketing/what-is-digital-marketing
https://pdfs.semanticscholar.org/0d34/18b475658af32197b6d1b9728fd48e8e5dff.pdf
 CHAPTER - 2

RESEARCH DESIGN

1.1 Introduction
1.2 Review of literature
1.3 Statement of problem
1.4 Objectives
1.5 Methodology
1.6 Scope
1.7 Limitations
1.8 Chapter scheme
2.1 Introduction

Digital marketing is a broad term which refers to the promotion of products or brands via one
or more forms of electronic media. For instance, advertising mediums that might be used as
part of the digital marketing strategy of a business could include publicity efforts made via
the Internet, social media, mobile phones and electronic billboards, in addition to digital,
television and radio channels.

Digital marketing undertakes include search engine optimization (SEO),search engine

marketing (SEM), content marketing, influencer marketing, content automation, campaign
marketing, and e-commerce marketing, social media marketing, social media optimization, e-
mail direct marketing, display advertising, e-books, optical disks and games, and any other
form of digital media. It also encompasses non-internet channels that provide digital media,
such as mobile phones (SMS and MMS), call back and on-hold mobile ringtones. To enhance
loyalty of customers towards e-commerce as a category they are differentiating in leveraging
data and assortment trends to finally move towards one to one marketing principle.
Customers are rewarded for their loyalty with better experience across delivery, pricing,
exclusive offer and return policies.

Early e-commerce trialists and adopters have clearly understood and experienced the
immense benefit of e-commerce. Therefore companies are scaling down mass media
advertising description of e-commerce targeted early trialists and adopters. Main digital
platform such as Google, Facebook, Twitter, You Tube etc. are rolling out more advertiser
friendly products that are allowing smaller as well large players to market with high
efficiency to early adopters. This is resulting in increase in digital marketing spending. Due to
innovation of digital media coupled e-commerce players system is moving from application
download and visit metrics to user metrics instead. Further, the role of digital marketing in
decision making, its effects on consumer behaviour, E-marketers should be concentrated
about the factors affecting the E-buyers, and they further develop their E-marketing strategies
to convert prospective customers into active ones.
2.2 Review of literature

Anjalli Vachchani (2016) opines that digital marketing, which is also called online or
internet marketing, involves the use of interactive, virtual spaces for the sake of promoting
and selling goods and services. In fact, new synchronous, internet-based communication
expertise had contributed to the restructuration of major economic sectors including
marketing. Being cost-effective, flexible, and fast and enjoying an on exceptional global
reach, digital marketing has brought about different businesses absurd gains. However, this
effective, new technique also embroils its special disadvantages, e.g. lack of personal contact,
security and privacy, etc. which should be taken account for. Poorly created and executed
programs create mistrust amongst clients and marketers. Spam, identity theft, meddling
advertising, technical snags, not keeping terms with contract / agreements, gap between
ordered products and actual deliveries have created profound mistrust in e- marketing. Hence
the growth of e-marketing depends also on the growth of business ethics on the one hand and
consumer protection laws on the others.

P. Sathya(2015) states that digital marketing is the avenue of electronic communication which is
used by the marketers to endorse the goods and the services towards the marketplace. The supreme
purpose of the digital marketing is concerned with consumers and allows the customers to intermingle
with the product by virtue of digital media. This editorial concentrates on the magnitude of digital
promotion for both customers and marketers. We scrutinize the result of digital marketing on the base
of firm’s sales. Digital marketing has turn out to be crucial part of approach of many
companies. At the present time, still for tiny business proprietor at hand have an extremely
inexpensive and competent method by using digital marketing to market their products or
services in the society. Digital marketing may achieve something more if it considers
consumer desires as a peak priority.

VeenaTripathi(2016) states that online Marketing is quickly evolving in front of our eyes
and it is almost impossible to reject and hide from this new form of media. “This shift in
consumer influence indicates a need and an opportunity for companies to reprioritize the mix
of communication channels they use to reach their consumers”. The study discusses the
attitude of teens towards brand selection due to Online Marketing comprising apparel market
in India. The study is exploratory in nature. The research uses content analysis to conduct the
research. The potential of online media is yet to be explored to its full potential in India. But
the beginning has already been formed and raising its graph frequently.

Surabhi Singh(2016) states that the rural banks are taking lot of initiatives to change the
attitude of their customers. This study will help the marketer in understanding of how
attitudes influence consumer behaviour towards banking in Rural India. Attitudes are
measured using the Likert's scale to understand how the consumers behave towards the
banking product. Owing to lack of time and resources the researcher has been able to explore
limited dimensions of digital marketing for future prospects of rural banks in India. Given a
time in future, more researches may be performed in the area of knowing more on work
ability of digital marketing models for growing banking business in rural India.

Rajiv Kaushik(2016) in his article “Digital Marketing in Indian Context” argues that digital
marketing is rising in India with fast pace. Many Indian companies are using digital
marketing for competitive advantage. Success of marketing campaign cannot be solely
achieved by digital marketing only. Rather for success of any marketing campaign it should
fully harness the capabilities of various marketing techniques available within both the
traditional and modern marketing. Start-ups that use digital marketing many times got failed.
This study shows precautions to be taken for effective implementation of digital marketing to
reap tremendous potential to increase in sales. Digital marketing has increased in last a few
years in India. People have different views about it. But the fact is this digital marketing has
tremendous potential to increase in sales provided businesses should have knowledge to
implement it in right way. Benefits like increased brand recognition and better brand loyalty
can be gained by effective digital media plan. Digital marketing campaign help in reduction
in costs, boost in inbound traffic and better ranking in search engines.

Andrew T Stephen (2015) in his article “The role of Digital and Social media marketing in
Consumer behaviour” discusses that how the digital and social media marketing influences
on the behaviour of the customers. Five themes are identified: (i) consumer digital culture,
(ii) responses to digital advertising, (iii) effects of digital environments on consumer
behaviour, (iv) mobile environments, and (v) online word of mouth (WOM).Collectively
these articles shed light from many different angles on how consumers experience, influence,
and are influenced by the digital environments in which they are situated as part of their daily
lives. He stated that there has been much recent activity in the consumer
behaviour/psychology literature related to digital and social media marketing, and many
important contributions to knowledge have been made.

K R Mahalaxmi in her article “A study on impact of digital marketing in Customer Purchase

Decision in Trichy” argues that people aware of digital channels in spite of their educational
qualification and the customer prefer digital channels to buy any sort of products. By
analyzing the collected data from the respondent using Chi-square test it is found out that no
much role of monthly income of the people associate with the kind of products they wish to
buy preferring digital channel.

Niharika, Satindar (2015) in their article discusses that the scope of E- Marketing is deemed
to be broad in scope it does not only use to promote marketing over the internet but also helps
in marketing as well through e-mail and wireless media. Here we analyzed to find out the
opportunities and challenges of Internet marketing in India. E-marketing also offers
businesses the opportunity to garner data about their consumer base to an extent that has till
now been very difficult to achieve via traditional marketing methods.

2.3 Statement of problem

Due to the recent trends in technological advancements, marketing channels and consumer
behaviours have seen a shift, which has impacted the consumer decision making process
when it comes to product purchases. Human interactions have changed significantly due to
engagement on social networks; the rapid growth of web platforms has facilitated behavioural
changes related to activities, habitats and interactions. Consumer behaviour changes require
organisations to re-strategies their marketing activities in the digital space, thus organisations
must understand how digital and social media marketing impacts consumers’ purchasing
decision processes. Together with these processes, organisations must also be aware of how
consumers’ attitudes, values, and beliefs impact their digital marketing campaigns.

2.4 Objectives

 To study the concept of digital marketing.

 To recognize the usefulness of digital marketing in the competitive market.
 To study the impact of digital marketing on consumers purchase.
 To know about the consumer awareness on usage of digital media.
2.5 Methodology
SAMPLING

Sampling is a statistical technique. It is a method in which a subset of the total

population is chosen to draw statistical inferences from which the overall population's
characteristics are calculated.

SAMPLING TECHNIQUE: Convenience Sampling.

Convenience sampling is kind of non-probability sampling also called as opportunity

sampling or grab sampling or accidental sampling. It is a type of sampling in which the
sample is selected from a subset of the population that is easily accessible i.e., it is
convenient to the researcher. The only criterion for the sampling technique is that people
be accessible and willing to participate. Furthermore, because the sole criterion is
whether the participants consent to participate, this sort of sampling method does not
necessitate the generation of a simple random sample. This approach is highly fast,
simple, readily available, and inexpensive, making it an appealing alternative for most
researchers.

SAMPLING FRAME: Digital marketing organizations.

SAMPLING UNIT: Consumers using digital media to purchase products.

SAMPLE SIZE: The sample size will be the response of 100 consumers who have
adequate knowledge regarding digital marketing

TOOLS FOR DATA COLLECTION

This study makes use of both primary and secondary data.

Primary Data: Primary data is data that is acquired directly from appropriate sources—
the data's original source. They are also known as first-hand data since they are collected
from reliable sources. They are generally in the form of surveys, interviews,
questionnaires, and so on. This study's core data consists of information gathered from
consumers via a questionnaire.

Secondary Data: Secondary data refers to information that has historically been
gathered. They are existing data that is used for particular research. The concepts related
to digital marketing, the platforms available for digital marketing and various digital
marketing channels.

Primary data is collected by framing a systematic questionnaire structured in such a way

so as to extract the point of view of the consumers with regards to digital marketing. The
secondary data is obtained from internet and articles that are related to the topic of study.
Both primary data and secondary data play a significant role in the study and help in
carrying out the research effectively.

DATA ANALYSIS

The analysis of the study is done by well-constructed questionnaire that

provides necessary information regarding consumer’s experience of digital marketing.
Data is collected in a systematic manner. The variables to be studied are identified and
have been converted into questions. Convenience sampling is used which makes it
favourable to carry out the study. Various statistical tools like tables, percentage, charts
are being used in appropriate places to study the data
2.6 Scope

Here the survey covers all the tools of digital marketing, how these tools influence on the
buying behaviour of consumers. The study is concentrated on the impact of digital marketing
on the purchasing decision of consumers. In this study I have taken Shivamogga as a special
reference to conduct the survey with the sample size of 100 respondents.

2.7 Limitations

This report was created in order to investigate the issues raised by the topic under
consideration and to generate appropriate measurements and findings that are accurate and
trustworthy. Despite the fact that the research was carried out to the fullest extent possible,
there are certain limitations to the study.

 The researcher has a limited amount of time to conduct a more in-depth investigation.
 The study's sample frame was confined to investors in Bangalore city.
 When compared to the whole population, the sample size under examination is
relatively tiny. As a result, the degree of accuracy and consistency is determined by
the veracity of the replies
 2.8 Chapter scheme

Chapter -1

Introduction, Meaning and Definition, History of digital marketing, Some facts about Indian
digital industry, Channels of digital marketing, Importance of digital marketing, Factors affecting
digital marketing, Sector wise using of digital marketing, Pros and cons of digital marketing,
Models of digital marketing

Chapter -2

Introduction, Review of literature, Statement of problem, Objectives, Methodology, Scope,

Limitations.

Chapter -3

Introduction, Meaning and Definition, Significance of the study of consumer behaviour,

Consumer buying process, Buyer behaviour models, Why we study consumer behaviour,
Sources of influence of the consumer, Determinants of consumer behaviour, Approaches to
study consumer behavior, Digital marketing of consumer behavior, Evaluation methods of
consumer behavior, Recent trends of consumer behavior and digital business, Examples for
Digital marketing

Chapter -4

Data analysis and interpretation

Chapter 5

Findings, suggestions and conclusion

Reference:
Articles
1. K R Mahalaxmi – Study on Impact of Digital Marketing in Customer Purchase Decision
(IJIRST) - International Journal for Innovative Research in Science and Technology– ISSN
(Online)– 2349-6010 – Page no. – 332-338
2. Anjalli Vachchani – Digital Marketing in India and its Challenges and Opportunities
Ahead – International Journal of Advanced Research– ISSN– 2320-5407 – Page no. – 1554-
1558
3. P Sathya – A Study on Digital Marketing and its Impact – International Journal of Science
and Research (IJSR) – ISSN(Online) – 2319-7064 – Page no. – 862-868
4. Veena Tripathi – Impact of Online Marketing on Teenagers in India – International Journal
of Social Science and Management – ISSN- 2091-2986 – Page no. – 277-280
5. Surabhi Singh – Impact of Digital Marketing – AIMA Journal of Management and
Research Page no. 1-5
6. Rajeev Kaushik – Digital Marketing in Indian Market - International Journal of
Computational Engineering and Management (April 2016) – ISSN (Online)- 2230-7893 –
Page no.- 12-17
7. Andrew Stephen – The Role of Digital and Social Media Marketing Consumer Behaviour
– Current Opinion in Psychology Special Issue on Consumer Behaviour - Page no.- 1-16
8. Niharika Satinder – A Study on Internet Market in India “Challenges and Opportunities” –
International Journal of Science Technology and Management – ISSN -2394-1537- Page
no.- 265-273
 CHAPTER – 3

CONCEPTUAL FRAMEWORK- CONSUMER BEHAVIOUR

3.1 Introduction

3.2 Meaning and Definition

3.3 Significance of the study of consumer behavior

3.4 Consumer buying process

3.5 Buyer behavior models

3.6 Why we study consumer behavior

3.7 Sources of influence of the consumer

3.8 Determinants of consumer behavior

3.9 Approaches to study consumer behavior

3.10 Digital marketing of consumer behavior

3.11 Evaluation methods of consumer behavior

3.12 Recent trends of consumer behavior and digital business

3.13 Examples for Digital marketing

3.1 Introduction

As a consumer we are all unique and this uniqueness is reflected in the consumption pattern
and process of purchase. The study of consumer behavior provides us with reasons why
consumers differ from one another in buying using products and services. We receive stimuli
from the environment and the specifics of the marketing strategies of different products and
services, and responds to these stimuli in terms of either buying or not buying product. In
between the stage of receiving the stimuli and responding to it, the consumer goes through
the process of making his decision.

The study of consumers helps firms and organizations improve their marketing strategies by
understanding issues such as how

 The psychology of how consumers think, feel, reason, and select between different
alternatives (e.g., brands, products)

 The psychology of how the consumer is influenced by his or her environment (e.g.,
culture, family, signs, media)

 The behavior of consumers while shopping or making other marketing decisions

 Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

 How consumer motivation and decision strategies differ between products that differ
in their level of importance or interest that they entail for the consumer and

 How marketers can adapt and improve their marketing campaigns and marketing
strategies to more effectively reach the consumer.
Consumer behavior involves the study of how people either individually or in group acquire,
use, experience, discard, and make decisions about goods, services, or even lifestyle practices
such as socially responsible and healthy eating.
3.2 Meaning and Definition

Meaning
Behavior is a mirror in which everyone shows his or her image. Behavior is the process of
responding to stimuli.

Consumer behavior is to do with the activities of individuals in obtaining and using the goods
and services; it encompasses the decision-making process that proceeds and determines
purchases.

Definitions

Professor Walter C.G. and Professor Paul G.W. -“The process whereby individuals decide
whether, what, when, where, how and from whom to purchase goods and services”

Professor Bearden and Associates -“The mental and emotional processes and the physical
activities of people who purchase and use goods and services to satisfy particular needs and
wants”

3.3 Significance of the study of consumer behavior

A study of consumer behavior is significant for the following reasons:

(i) Realistic Implementation of the Marketing Concept:

The modern marketing concept is consumer-oriented. To give a realistic implementation to

this concept, a study of consumer behavior is imperative. More specifically, a study of
consumer behavior is a must for developing an ideal marketing-mix; which is the cornerstone
of the concept of marketing.

It is, in fact, very true to state that unless the marketer knows what consumers buy and why it
is not possible to design and implement a successful scheme of marketing-mix to, beat the
completive elements.

(ii) Planning Product Differentiation and Market Segmentation:

For planning product differentiation strategies (i.e. making the product so differentiated and
unique that consumer may be tempted to buy only that product due to its unique features) a
study of consumer behavior is very significant or necessary.
Again, for designing schemes of market segmentation (a process of dividing a potential
market into distinct sub-markets of consumers with common needs and characteristics), a
study of consumer behavior is very necessary.

(iii) Selection of Distribution Channels:

A study of consumer behavior not only includes what consumers buy; but also the source
from where they buy’. For example, men of status in society may never buy things from
ordinary shops and ordinary markets. They may prefer to buy from prestigious stores and
markets; even though they may have to pay a higher price and so on for various categories of
consumers.

Thus a study of consumer behavior guides the marketer to select suitable channels of
distribution, to provide maximum convenience and satisfaction to different groups of
consumers.

(iv) Designing Promotional Techniques:

Promotional techniques include advertising message and media, personal selling approaches
and special sales promotional devices. Designing promotional techniques is much facilitated
by a study of consumer behavior; which may throw light on the psychology of people as to
the factors which affect their buying decisions. Those factors which affect consumers’ buying
behavior may be suitably incorporated into the promotional techniques of the organization.

(v) Trade-Off between Price and Quality:

A study of consumer behavior is likely to reveal whether target consumers of the enterprise
emphasize more on the price of the product or its quality. On this basis, the marketer can
device suitable pricing strategies and programs aimed at upgrading the quality of
organization’s products to suit the needs, habits and behavior of consumers
3.4 Consumer Buying Process

The consumer buying process is a five step activity.

1. Need Recognition

The starting point of buying process is the perceived want or a desire. Need recognition is the
awareness of the want or a desire or a consumption problem without whose satisfaction the
consumer feels restless and tension-charged. That is, he or she feels that a desire or want has
arisen which has to be satisfied.

2. Information Search

A need aroused and recognized can be satisfied only when the product or service is available.
Consumer interest is indirect in the consumer’s willingness to seek further information about
product or satisfaction; he searches relevant information from different sources. Consumers
tries to get up-to-date adequate information regarding the products and services wants to go
in for.

3. Evaluation and Intension

It is consumer’s deep interest in the product or service that paves the way for evaluation and
intension. The evaluation stage is the stage of mental trial of the product or a service. Once he
evaluates, he develops the intension to accept or reject a given product or service. The final
purchase depends on the relative strength on the positive intension to buy. In evaluating the
alternatives, many values are taken into account such as product characteristics, brand
images, trade-offs, conveniences, facilities and concessions.

4. Purchase decision

It is the positive intension of the consumer that leads to a purchase decision. Decision to
purchase implies consumer commitment for a product or a service. Practically, it is the last
stage in the buying process because it completes the exchange process. Such a purchase may
be a trial or adoption. Trial purchases are done when the consumer buys the product or
services for the first time. This occurs mostly in case of consume non-durables. In case of
consumer durables, it is purchase adoption than trial because, consumer durable items cannot
be purchased on trial basis. It is through trial or adoption that the consumer gains experience
and that may result in result in repeat sales, if he is satisfied with the product or the service.
5. Post purchase reaction

Post-purchase behavior or reaction stands for the behavior of a consumer after a commitment
to product has been made. This post-purchase experience may be a set of positive or negative
feelings. Positive feelings or satisfaction will result in repeat sales or at least recommending
the products or services to other; on the other hand, dis-satisfaction or negative feelings
creating anxiety and doubts. This stage of mind is called as ‘cognitive dissonance’. He tries to
reduce it by going in for other alternative product or service in search of highest level of
satisfaction.

3.5 Buyer Behavior Models

Broadly one can classify BUYER BEHAVIOUR MODELS into four broad categories
namely – Economic, Leaning, Psychoanalytical and Sociological.

1. The economic model.

According to this Economic model of buying behavior, the buyer is a rational animal and his
buying decisions are totally governed by the concept of utility. Stated briefly, if he has certain
amount of purchasing power a set of needs to be met and a set of products to choose from, he
will allocate the amount over the set of products in a very rational manner with a very clear
intension of maximizing the utility of the benefits he is going to derive.

2. Learning model.

All theories of buyer behaviour have been basically based on a learning model namely,
Stimulation-Response or more popularly known as SR model. SR learning theory is very
useful to modern marketing and marketers. Learning is the centrifugal point in the entire
study of human behaviour. Learning, as noted earlier, refers to a change in the behaviour
which occurs as a result of practice. It is a change in the behaviour that results from previous
experience and behaviour in similar situations. What is important, learning is the product of
reasoning, thinking, information processing and, of course, perception. Therefore, behaviour
is deeply affected by the learning experience of the buyers.

3. Psychoanalytical model.

The psychoanalytical model draws from Freudian psychology. According to this model, the
individual consumer has a complex set of deep seated motives which drive him towards
certain buying decisions. The buyer has a private world with all his hidden fears, suppressed
desires and totally subjective longings. His buying action can be influenced by appealing to
these desires and longings.

4. Sociological model.

According to the sociological model, the individual buyer behaviour is influenced by society-
by intimate groups as well as social classes. That is, his buying decisions are not totally
determined by the concept of utility. That is his buying decisions are governed by social
compulsions. As a part of sociological model- two important variations can be considered
namely, one that of Nicosia and another Howard Sheth. The marketing scholars have tried
to build buyers-behaviour models purely from stand point view of marketing man. Here
Francesco Nicosia model of 1966 and Howard Sheth model of 1969 are of this category.

3.6 Why we study consumer behaviour?

The study of consumer behaviour is the study of how individuals make decisions to spend
their available resources (time, money, efforts) on consumption- related items. It includes the
study of what they buy, what they buy it, when they buy it, where they buy it, how often they
buy it, and how often they use it.

Just as consumer and marketers are diverse, the reasons why people study consumer
behaviour are also diverse. The field consumer behaviour holds great interest for us as
consumer, as marketers.

As consumer, we benefit from our own consumptions- related decision: what we buy, why
we buy. How we buy and the promotional influences that persuade us to buy. The study of
consumer behaviour enables us to become better, that is, wiser, consumer.

As marketers and future marketers, it is important for us to recognize why and how
individuals make their consumption decisions, so that we can make better strategic marketing
decisions. If marketers understand consumer behaviour, they are able to predict how
consumers are likely reacting to various informational and environmental causes, and are able
to shape their marketing strategies accordingly. Without doubt, marketers who understand
consumer behaviour have great competitive advantage in the marketplace.
3.7 Sources of influence of the consumer

The consumer faces numerous of influence. Often, we take cultural influence for granted, but
they are significant. An American will usually not bargain with a store owner. This, however,
is common practice in much of the world. Physical factors also influence our behaviour. We
are more likely to buy a soft drink when we are thirsty.

For example, and food manufactures have found that it is more effective to advertise their
products on radio in the late afternoon when people are getting hungry. A person’s self-image
also tend to influence. What he/she will buy? An upwardly mobile manager may buy a
flashy car to project an image of success. Social factors also influence what the consumers
buy-often, consumers seek to imitate others whom they admire, and may buy the same
brands, the social environment can include both the main stream culture and a sub culture.

3.8 Determinants of consumer behaviour

The determinants of consumer behaviour can be grouped into three major captions namely,
economic, psychological and sociological.

I. Economic Determinants:

Economic scientists were the first among social scientists to study consumers and their
behaviour and provided the details about the solutions to the consumer and consumption
problems. Economists, as we are aware, took man as a social and rational animal.

The basic economic determinants among others are:

1. Personal income:

One’s income is the reward for one’s economic efforts. Income means purchasing power.
When we talk of income in marketing sense, we are more concerned with ‘disposable
income’ and “discretionary income’.

‘Disposable income’ is the amount of money that a consumer has at his disposal for spending
or saving or both. Any change in disposable income will have change in consumer buying
decisions. On the other hand, ‘discretionary income’ is the income which is available after
meeting the basic needs of living. A rise in discretionary income results usually in an
increased spending by consumers on those items that raise their living standards.

2. Family income:

Where a consumer is the member of a joint family, the buyer behaviour is influenced by the
family income rather than the individual income. It does not mean that one can ignore the
individual income, for family income is the aggregate of individual income of all the
members of the family.

In a joint family, it may so happen that a rise in an individual member’s income may be
neutralised by a fall in another member’s income. That is why; it is the relationship between
the family size or the requirements and the income that finally determines the buying
behaviour or the family members.

3. Consumer income expectations:

Many a times, it is the future income expectations of the consumer that influences such
consumer behaviour. It is the optimism or the pessimism about consumer income that
determines the level of current spending. If there are bleak prospects of future expected
income, he spends less now and saves more and vice versa. It is worth the noting here that the
force and vitality of a tendency to spend or save depends on the nature of consumer needs.

In case of basic needs of living, such tendency will be too weak for no consumer denies the
minimum subsistence level merely because to bleak future income expectations. However, in
case of non-essential goods, such tendency may be very strong to save than to spend if he is
expecting weak future income generation and vice versa.

4. Consumer liquid assets:

It is the consumer liquid asset position that influences the consumer behaviour. Liquid assets
of consumers are the assets held in the money or near-money forms of investments. The best
examples of this kind are hard cash, bank balance, bank deposits, shares and bonds and
saving certificates. These assets are built up to buy some consumer durables or to meet
unexpected future needs or contingencies. If a person has more such liquid assets, more carefree
he comes in spending the current or the regular income.
5. Consumer credit:

Availability or paucity of consumer credit has its impact on consumer buying behaviour.
Consumer credit is a facility extended by a market to postpone the payment of products
bought to some future date.

Consumer credit takes number of shapes like deferred payment, installment purchasing, hire-
purchase arrangements and the like. Easy availability of consumer credit makes the consumer
to go in for those consumer durables which he would have postponed otherwise. Further, it
makes him to spend more freely the current income.

6. The level of standard of living:

The consumer behaviour has the impact of the established standard of living to which he is
accustomed. Even if consumer income goes down, the consumer spending will not come
down proportionately because, it is very difficult to come down from an established standard
of living. On the other hand, rise in income tends to improve upon the established standard of
living. In case the income falls, the short-fall is made good by borrowings to a certain extend
over a short period of time.

II. Psychological Determinants:

Psychologists have also provided certain clues as to why a consumer behaves this way or that
way. The major psychological determinants internal to the individual are motivation
perception learning, attitude and personality.

1. Motivation:

Motivation is the ‘why’ of behaviour. It is an intervening variable between stimulus and

response and a governing force of consumer behaviour.

“Motivation refers to the drives, urges, wishes or desires which initiate the sequence of
events known as behaviour.” as defined by Professor M.C. Burk. Motivation is an active,
strong driving force that exists to reduce a state of tension and to protect, satisfy and enhance
the individual and his self-concept. It is one that leads the individual to act in a particular
way. It is the complex net-work of psychological and physiological mechanisms. Therefore,
motives can be conscious or unconscious, rational or emotional, positive or negative. These
motives range from a mere biological desires like hunger and thirst to the most advanced
scientific pursuits like landing on the Moon or Mars.

2. Perception:

Marketing management is concerned with the understanding of the process of perception

because, perception leads to thought and thought leads to action. Perception is the process
whereby stimuli are received and interpreted by the individual and translated into a response.

3. Learning:

In behavioural science, learning means any change in behaviour which comes about as a
result of experience. Learning is the process of acquiring knowledge. Consumer behaviour is
a process of learning because; it is modified according to the customer’s past experience and
the objectives he or she has set.

The strong tendency of most consumers to develop brand loyalties definitely benefits the
makers of established brands. This makes the manufacturer of a new brand to face difficulty
in breaking such loyalties and encouraging brand switching.

4. Attitude:

The concept of attitude occupies a central position in the consumer behaviour studies in
particular and social psychology in general because; attitude measurements help in
understanding and prediction of consumer behaviour. ‘Attitude’ refers to a predisposition to
behave in a particular way when presented with a given stimulus and the attitudes towards
people, places, products and things can be positive or negative or favourable or unfavourable.

Attitudes develop gradually as a result of experience; they emerge from interaction of a

person with family, friends, and reference groups. The marketer may be interested in
confirming the existing attitudes, or change in the existing attitudes or create new attitudes
depending on how his product is performing in the market.
5. Personality: Very often, the word ‘personality’ is used to refer to the capacity of a person
for popularity, friendliness or charisma. However, in strict sense, it refers to the essential
differences between one individual and another.

Therefore, personality consists of the mannerisms, habits and actions that make a person an
individual and thereby serve to make him distinct from everyone else. It is the function of
innate drives, learned motives and experience. Evaluation of personality’s role in marketing
is seen in drawing consumer profiles and psychographic market segmentation.

III. Sociological Determinants:

The sociologists and social psychologists have attempted to explain the behaviour of a group
of individuals and the way in which it affects and conditions and individual’s behaviour in
marketing or purchase decisions.

These groups of individuals as determinants are:

(1) Family

(2) Reference groups

(3) Opinion leaders

(4) Social class and

(5) Caste and culture.

Let us see these in brief to know their marketing implications:

1. Family:

Many of the decisions made by consumers are taken within the environment of the family
and are affected by the desires, attitudes, and values of the other family members. Family, as
a primary group, is vital because, it links the individual with a wider society and it is through
this that the individual learns the roles appropriate to the adult life.

The family impact on consumer buying behaviour can be traced in two ways:

1. The family influence on the individual personality characteristics, attitudes and the
evaluative criteria and
2. The family influence in the decision-making process involved in the purchases. Family is
both a purchasing and consuming unit. Therefore, it is essential to note the distinguished
family roles of the members.

2. Reference groups:

Each person in the society is not only the member of his family but the member of some
group or groups outside the family circle. These groups can be called as ‘reference groups’.

‘Reference groups’ are those groups which an individual identifies with to the extent that
these groups become a standard or norm which influences his behaviour.

Reference group is a social and professional group that influences the individual’s opinions,
beliefs and aspirations. It is one that provides an individual with a sense of identity,
accomplishment and stability.

3. Opinion leaders:

Like reference groups, ‘opinion leaders’ or ‘influential’ play a key role in influencing the
buying behaviour of their followers. Very often we come across situations where a person
refers to an individual than a group in formulating his or her behaviour pattern. The
individual to whom such reference is made by a person or persons is the opinion leader.

Marketers very often try to catch hold of the opinion leaders through ads and other means of
communication. If they succeed in selling their ideas and products to the opinion leaders, then
they have sold it to the entire group of followers behind them.

4. Social class and caste:

Buying behaviour of individuals is also influenced by the social class and the caste to which
they belong. Social class is a relatively permanent and homogeneous division of a society
into which individuals or families sharing similar values, life-style, interests and behaviour
can be categorized. Social class is a larger group than intimate group in structure.

From the marketing stand point, both social class and caste frame are quite relevant as buyer
behaviour is influenced by these. Each class and caste develops its own standards of style,
living and behaviour patterns.

5. Culture:
Culture adds yet another dimension to the study of consumer behaviour. ‘Culture” refers to
all those symbols, anti-factor and behavioural patterns which are passed on socially from one
generation to the next.

It includes cognitive elements, beliefs, values, and norms, signs and non-normative
behaviour. Cultures are specific to the areas in which they evolve. Yet two nations can enjoy
a common cultural heritage. Thus, each nation has its distinct culture; however, in a particular
nation, there may be subcultures identified on the basis of ethnicity, nationality, religion and
race.

Cultural trends have significant implications for market segmentation, product development,
advertising, merchandising, branding and packaging. While designing the marketing-mix, it
is but essential to determine the broad cultural values that are relevant to the product as well
as the most effective means of conveying these values.

3.9 Approaches to study consumer behaviour

There are two broad approaches to the study of consumer behaviour:
1. A managerial Approach

2. A holistic Approach

A managerial approach views consumer behaviour as an applied social science. It is studied as an

adjunct to and a basis for developing marketing strategies. A holistic approach views consumer
behaviour as a pure rather than applied social science. In this view, consumer behaviour is a
legitimate focus of inquiry in and of itself without necessarily being applied to marketing.

Although it may appear that the first view has the most credence for marketers, in reality, a
holistic approach also provides a useful perspective to strategy in many cases.

1. A managerial approach

A managerial approach to consumer behaviour tends to be more micro and cognitive in

nature. It is micro in emphasizing the individual consumer: his or her attitudes, perceptions,
and lifestyle and demographic characteristics. Environmental effects- reference groups, the
family, culture -are studied in the context of how they influence the individual consumer. In
being more micro, a managerial orientation is also more cognitive; that is, it emphasizes the
thought processes of individual consumers and the factors that go into influencing their
decisions. Marketing mangers find such a focus on the individual only natural. The goal of all
marketing strategy should be to satisfy the needs of individual consumers in a socially
responsible manner. Information is collected on the consumer’s needs (desired product
benefit), thought processes (attitudes and perceptions), and characteristics (lifestyles and
demographics). This information is then aggregated to define segments of consumers that can
be targeted with the company’s offerings. Thus, a more affluent, older baby boom segment
might be identified that likes casual wear and emphasizes performance over status.
Identification of such a segment would have implications for marketers of everything from
clothes to home computers and from yogurt to cars. But there are risks in taking too rigid a
managerial perspective. First, it might overemphasize the rationality of consumers. The
cognitive view is that consumers search for and process information in some systematic
manner in an attempt to meet their needs. But in many cases, such systematic processing may
not occur, as when consumers buy products for their symbolic value, on impulse, or on an
addictive basis. Using a strictly approach may not reveal the underlying nature of the
consumer’s decision in these cases. Second, a micro view might overlook the dynamics of
environmental factors independent of the individual. Third, a managerial perspective tends to
focus more on purchase than on consumption. This is only natural since marketing managers
emphasize sales results as represented by purchasing behaviour. But, recently, the focus has
increasingly shifted to what happens after the purchase. Satisfaction is generally defined by
the consumption, not the purchase experience. A whole new area in marketing called
relationship marketing recognizes that marketers must maintain a relationship with their
customers after the purchase. And to a large degree, this relationship will depend on the
consumption experience.

2. A holistic approach

A holistic approach is more macro in its orientation. It tends to focus more on the nature of
consumption experience than on the purchasing process because it stresses the broader,
culturally derived context of consumption. Consumption is seen as being symbolic as well as
functional, antisocial as well as social, and idiosyncratic as well as normative. Purchase
behaviour is of little inherent interest outside of its impact on the consumption experience.
When it is studied, it is in the context of shopping rather than decision making because
shopping is frequently culturally derived. Whereas a managerial orientation is more interested
in predicting what the consumer might do in the future, the holistic approach is more
interested in understanding the environmental context of the consumer’s action. A holistic
approach also has its draw backs. The most important is that findings regarding the culturally
derived meaning of consumer actions and consumption experiences may not be actionable
from a marketer’s perspective. This need not bother those who study consumer behaviour for
its own sake, but findings from consumer behaviour should be actionable for marketing
strategies in a business context. Second, a holistic approach does not put sufficient emphasis
on purchase decisions. Marketers must understand how consumers reach decisions if they are
to influence them. Third, although many consumer decisions are not made through a process
of systematic processing, many are. Some understanding of such cognitive processes is
necessary if marketers are to attempt to meet consumer needs.

3.10 Digital marketing of consumer behavior

The digital era has and will continue to change social trends, which in turn directly affects
consumer behaviour and demands. The change in consumer behaviour can be hard to
understand or even recognise, but brands today need to realise that it is happening and they
need to change and adapt their customer service accordingly. The digital consumer has the
potential to unsettle current competition as well as new players in any industry.

Changing consumer behaviours can be daunting for brands and can present certain challenges
such as an increase in negative publicity. This said, there are also certain constructive
opportunities that come with the risks, like the chance to engage with customers who are
looking at the overall brand value of the product or service as opposed to just the price tag.

1. SETTING STANDARDS

Customers are no longer comparing brands with their direct competitors, but rather all brands
they consume, no matter the industry or product. They are comparing not only the product
but a myriad of brand elements such as service, quality, and overall customer satisfaction to
name a few. Brands should no longer be focusing on their direct competitors, but instead
focusing on how they can be better than the best brands their consumers are using. Modern
day consumers are comparing apples with oranges. Fashion brands are now being put up
against supermarket chains and insurance companies; if one offers fantastic service, the
benchmark it set for the others to meet those standards.

2. CUSTOMER TOLERANCE
It’s now so much easier for customers to complain about bad service, meaning it’s much
harder for brands to satisfy customers’ wants and needs. Customers place a large emphasis on
the ease of service, and if this isn’t met they will take to digital media to complain and let
others know of their misfortunes. Brands need to accept the fact that customers are less
tolerant than they used to be, and they need to act accordingly in order to retain their
customer base.

3. CUSTOMER DIALOGUE

Between social media and customer forums, consumers have the ability to both build and
destroy brands. Word of mouth was, and still is, king. Customers have always been led by the
opinions of friends and family, but nowadays this is corroborated by social media likes and
testimonials. Brand reputations can stand or fall over night, all based on the communication
between consumers.

4. LOYALTY

Customers want value for money and will no longer just accept cheap products and services.
Likewise, customers won’t accept overpricing or poor standards of customer service. Brands
need to understand that today’s customers are open to brand switching and do not have the
same level of loyalty as they once did. Customers demand superiority and are happy to pay
for it.
5. PROMOTION

Consumers no longer trust traditional information channels as they once did, and so consumer
opinion and relationships are formed on other, digital based, channels. This has meant a
complete shift for brands to jump into digital and embrace conversation with consumers,
which was previously reserved for personal comment and opinions. It’s difficult for some
brands to keep up with both traditional and digital development, but it’s vital that they do in
order to continue successful conversation and promotion with their customer base.

6. INFORMATION

The digital revolution has provided customers with a far greater knowledge of products and
services, meaning that brands no longer decide what information is handed to consumers
regarding product knowledge. Consumers are able to access information and opinions within
seconds, providing them with enough facts to make informed purchase decisions.

7. MULTI CHANNEL COMMUNICATIONS

Brands don’t decide which communication methods are best used by consumers. They
themselves decide this, based on which channels are used by their friends, family, and
influencers alike. Brands need to choose channels based on whether it’ll be suitable for the
type of interaction they’re looking for, otherwise the exposure of the interaction to the
consumer won’t be profitable. A direct and focused approach to customer service is
imperative for brands to meet the heightened expectations of service, and to accommodate
changing consumer behaviour. This approach will give brands the opportunity to mine insight
and intelligence to progressively improve their relationships with consumers.

3.11 Evaluation methods of consumer behavior

Social researchers have developed many methods of studying consumers and the behaviors
that drive purchase decisions. The research falls into two categories. Primary research is
designed and conducted by an individual or organization, and secondary research uses
information that others have conducted to draw new or different conclusions.

Some typical primary research methods include:

Surveys – Surveys are ideal for gathering a large amount of specific information, whether
containing open-ended questions (What state are you from?) or multiple choice (Are you
married? Yes or No). Surveys can be mailed, emailed or conducted in person.

Sample – Offering samples of new products to consumers is an excellent way to gauge what
will (or won’t) work. Most people will offer their honest opinion if given a free sample or
incentive.

Focus Groups – Focus groups are particularly useful for testing new products or making
changes to existing product, allowing a group to discuss a certain idea or product and
gathering data from the conversations that transpire.

Personal Interviews – A personal interview can gather very in-depth information from a
consumer, but can be very costly and time-consuming.
Observation – Simple observation can often provide the most honest opinions from a
consumer, whether it is observing an online marketplace or a physical store space.

Online Research – Pop-up surveys are becoming more common; gathering data from
consumers through data forms during online shopping or purchase. Online data can also be
gathered by monitoring page visits and behavior on a website.

Scanned Data – Many stores are using ‘frequent shopper’ or ‘VIP’ cards to encourage
shoppers to become regulars, but these cards are also used to gather data about the types and
frequencies of purchases made by certain groups of people.

A few examples of secondary research methods include:

Books – Researched and scholarly works of literature offer excellent sources for information.

Internet publications – Credible, authoritative research can be found online, and should be
used sparingly and fact checked

Research reports – Tested information conducted by credible professionals can offer first
rate insight.

3.12 Recent trends of consumer behavior and digital business

Bulk Purchasing:

Urbanization is taking place in India at a dramatic pace and is influencing the life style and
buying behaviour of the consumers. The working urbanites are depending more on fast and
ready-to-serve food, they take less pain in traditional method of cooking and cleaning. Bulk
purchases from hyper stores seems to be the trend these days with purchasing becoming more
of a once-a-week affair, rather than frequent visits to the neighborhood market/store/vendor.

Trendy Lifestyles:

The current urban middle and upper class Indian consumer buying behaviour to a large extent
has western influence. There is an increase in positive attitude towards western trends. The
Indian consumer has become much more open-minded and experimental in his/her
perspective. There is now an exponential growth of western trend reaching the Indian
consumer by way of the media and Indians working abroad.
Buyers' Market In The Making:

The sellers' market is slowly moving towards becoming the buyers' market. Since, India's
economic liberalization policies were initiated in 1991, many new product offerings have
entered the Indian market and product variety has also increased manifold. Import licensing
restrictions are being eliminated and tariffs significantly reduced and this has led to large
range of consumer goods made available in India. Indian consumers have always preferred
foreign goods and with the liberalization, they now have a choice of foreign products vis-a-
vis the local products.

3.13 Examples for Digital marketing

1. Uber: Uber focused on mobile-savvy professionals who didn't mind paying that little extra
to travel in style and comfort. They made luxury standard, and backed it up with a brilliant
app that made booking an Uber ride extremely quick and convenient. Uber is now a success
story cited by many and studied in depth.

2. Domino’s: Domino’s has been widely regarded for its marketing brilliance ever since
their 2009-2010 turnaround. And recently they’ve been showing no signs of slowing down.
Their recent “Domino’s Anyware” has earned them headline after headline in major
publications like Forbes, Wired, and Cnet. And publications like Fast Company are going as
far as saying that Domino’s now looks more like a tech company than just a pizza chain. The
goal of the campaign is to make their pizza as easy to order as possible from any of your
favorite tech hardware. It started by letting customers order via Twitter. Then it expanded
with the addition of Amazon Alexa, Slack, and Facebook Messenger Chatbot.

3. Educate The Girl Child: Nestle India joined hands with project Nanhi Kali on Teachers' Day
with the aim of providing primary education to underprivileged girl children in India. They
launched a touching digital film and informative visual content to help build awareness for
the cause. They also used Twitter's Periscope to live-stream an interaction with the girls of
Nanhi Kali.
4. NamakKeWaastey: Tata Salt was one of the sponsors of the Indian Olympics contingent
in Rio 2016. During this time, the brand launched NamakKeWaastey to build pride,
awareness, and respect for our athletes. They profiled four Olympics aspirants and told their
compelling stories to the world. These stories beautifully covered what each aspirant had
undergone to reach the level they are at today.

5. Smile More For A Good Day: Britannia Good Day launched their campaign
SmileMoreForAGoodDay with Bollywood actress Deepika Padukone to spread the simple
yet very important message of smiling more often. Good Day spread the word with the help
of engaging visuals and social influencers who amplified the new brand philosophy in their
own unique style

7. Dell Anti Rote Day: Dell India took up the strong initiative of eradicating rote learning
from our education system by building awareness about its dangers. The brand celebrated
10th June, 2016 as Anti Rote Day with a micro portal, a digital film, and stunning visuals.
They also ran engaging contests that invited users to share their own 'ratta stories'.

8. Brewed The Hard Way: In their bid to resonate with a young consumer segment,
Budweiser's BrewedTheHardWay featured real-life passionate singers who've been “brewed
the hard way”. A digital film series paid tribute to young folks like fashion designer Masaba
Gupta and musician Sahej Bakshi, each of whom embodies the values of ambition and
freedom.

9. Keep It Personal: Godrej Security Solutions used humour in its content pieces on social
media for the launch of India's first personal locker. The brand's digital team designed quirky
content in the form of GIFs and visuals that showed compelling reasons to buy the locker.

Reference:

Books
Dr. C N Sontakki - Marketing Management – Kalyani Publications

Websites
http://www.digitaltechnology.institute/blog/impact-of-digital-marketing-on-consumer-
behaviour
http://intelliassist.co.in/impact-digital-marketing-consumer-behavior/
https://www.inc.com/adam-heitzman/how-digital-marketing-transformed-the-consumer-
buying-process.html

CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

1. CLASSIFICATION OF RESPONDENTS ON THE BASIS OF

GENDER

NO. OF
GENDER PERCENTAGE
RESPONDENTS

MALE 48 48%

FEMALE 52 52%

TOTAL 100 100%

(Source: survey data)

From the above table it is clear that among the 100 respondents, 48% of respondents were
male and 52% of the respondents were female.

This shows that, majority of the respondents are female because more female they are
interested in shopping through digital media than compared to male respondents.
 100%
TOTAL
100

52%
FEMALE PERCENTAGE
52
NO. OF RESPONDENTS

48%
MALE
48

0 20 40 60 80 100 120

2. CLASSIFICATION OF RESPONDENTS ON THE BASIS OF AGE:

NO. OF
AGE PERCENTAGE
RESPONDENTS
BELOW 15 YEARS 1 1%
15-30 YEARS 68 68%
31-50 YEARS 23 23%
ABOVE 51 YEARS 8 8%
TOTAL 100 100%

(Source: Survey data)

, 68% of respondents belong to the age group of 15-30 years, 23% of the respondents belong
to the 31-50 years and 8% of the respondents belong to the age above years. From the above
table it is clear that, among the 100 respondents, 1% belongs to the age below 15 years

This shows that majority of the respondents are belong to the age group of 15-30 years which
represents young generation is more interested in shopping through digital media.
 100
100
90
80
68
70
60
50 NO. OF RESPONDENTS
40 PERCENTAGE
30 23
20
8
10 1 1% 68% 23% 8% 100%
0
BELOW 15-30 31-50 ABOVE TOTAL
15 YEARS YEARS YEARS 51 YEARS

3. CLASSIFICATION OF THE RESPONDENTS ON THE BASIS OF

EDUCATION QUALIFICATION

NO. OF
PERCENTAGE
QUALIFICATION RESPONDENTS
UPTO SSLC 9 9%
PUC 22 22%
GRADUATION 31 31%
POST-
38 38%
GRADUATION
TOTAL 100 100%

(Source: Survey data)

From the above table it is clear that, out of 100 respondents, 9%(9) of them studied up to
SSLC, 22%(22) of them are studied PUC, 31%(31) of them have completed graduation and
remaining 38%(38) of them have completed post-graduation which constitute highest part of
qualification.
This shows that the post-graduate people are more interested in digital shopping.
 120

100%
100

80

60
100

38%
40
31%
22%
38
20 31
9% 22
9
0
QUALIFICATION UPTO SSLC PUC GRADUATION POST-GRADUATION TOTAL

NO. OF RESPONDENTS PERCENTAGE

4. CLASSIFICATION OF RESPONDENTS ON THE BASIS OF

OCCUPATION

NO. OF
OCCUPATION PERCENTAGE
RESPONDENTS
STUDENT 42 42%
EMPLOYED 35 35%
PROFESSIONAL 11 11%
HOME MAKER 12 12%
TOTAL 100 100%

(Source: Survey data)

In this table, it shows that respondents are classified on the basis of occupation, in this highest
of 42% (42) are students and 35 %( 35) are employed people as second and third position is
11 %(11) respondent are professional and 12% (12) are home maker.

This indicates that students are more passionate about digital shopping when compared to the
rest of the respondent category.
 120
100%
100

80

60
100
42% PERCENTAGE
40 35%
NO. OF RESPONDENTS
42 35
20 12%
11%
11 12
0
T D L R L
DEN YE NA A KE O TA
O O
ST
U PL SI EM
T
EM FES M
O O
PR H

5. CLASSIFICATION OF RESPONDENTS ON THE BASIS OF

INCOME
NO. OF
INCOME (Rs.) PERCENTAGE
RESPONDENTS
BELOW 50,000 41 41%
50,000-1,00,000 23 23%
1,00,000-2,00,000 16 16%
ABOVE 2,00,000 20 20%
TOTAL 100 100%

(Source: Survey data)

In this table it shows that respondents are classified on the basis of their income. In that, 41%
of the respondents come under the group of earning below Rs.50000, 23% of the respondents
come under the group of Rs.50000- Rs.100000, 16% of the respondents come under the
group of Rs.100000- Rs.200000 and rest of the respondents earn above Rs.200000 per
annum.
It shows that the respondents who earn below Rs.50000 are having more interest in shopping
through digital market, as they are students mostly they buy from their pocket money.

120

100
100

80

60 NO. OF RESPONDENTS
PERCENTAGE
41
40

23
20
20 16

41% 23% 16% 20% 100%

0
BELOW 50,000- 1,00,000- ABOVE TOTAL
50,000 1,00,000 2,00,000 2,00,000

6. CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR

AWARENESS ABOUT DIGITAL MARKETING

AWARENESS NO. OF RESPONDENTS PERCENTAGE

YES 93 93%
NO 7 7%
TOTAL 100 100%

(Source: Survey data)

From the above it is clear that 93% of the respondents say that they are aware of digital media
and the rest of the respondents i.e., 7% of the respondents say that they are not aware of
digital media.
It shows that majority of the respondents are having an awareness about digital media.

120

100

80

60

100
93
40

20

7
93%
0 7% 100%
YES NO TOTAL

NO. OF RESPONDENTS PERCENTAGE

7. CLASSIFICATION OF RESPONDENTS ON THE BASIS OF MONEY

SPENT BY THEM IN SHOPPING AT ONCE

MONEY NORMALLY NO. OF RESPONDENTS PERCENTAGE

SPENT (Rs.)
LESS THAN 1,000 21 21%
1,000-4,000 42 42%
4,000-10,000 24 24%
MORE THAN 10,000 13 13%
TOTAL 100 100%

(Source: Survey data)

From the above table it is clear that, 21% (21) of respondents spend less than 1000, 42% (42)
of respondents spend Rs.1000- Rs.4000, 24% (24) of respondents spend Rs.4000- Rs.10000
and finally 13% (13) of respondents spend the maximum that is more than Rs.10000.
It is clear that out of the total respondents, majority i.e., 42% of respondents spend in between
the range of Rs.1000- Rs.4000 and the maximum amount spent at once is by the 13% of
respondents.

21

LESS THAN 1,000

42 1,000-4,000
100 4,000-10,000
MORE THAN 10,000
TOTAL
24
13

8. CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR

FREQUENCY OF USING DIGITAL MEDIA

FREQUENCY NO. OF RESPONDENTS PERCENTAGE

VERY LOW 23 23%
LOW 22 22%
MODERATE 24 24%
HIGH 28 28%
VERY HIGH 03 03%
TOTAL 100 100%

(Source: Survey data)

From the above it is clear that frequency of using digital media of 23% respondents is very
low, 22% respondents is little higher than that, 24% is moderate, 28% is high and only 3% of
respondents use digital media for shopping at a very high rate.
It shows that there is no much difference in frequency of using digital media among the
respondents but 28% of respondents which constitute a majority use at a higher rate.

100%
TOTAL
100
3%
VERY HIGH
3
28%
HIGH
28
24%
MODERATE
24
22%
LOW
22
23%
VERY LOW
23
0 10 20 30 40 50 60 70 80 90 100

PERCENTAGE NO. OF RESPONDENTS

9. CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR

APPROXIMATE TIME SPENT PER WEEK

PARTICULAR NO. OF RESPONDENTS PERCENTAGE

0 Hours 04 04%
1-4 Hours 48 48%
4-8 Hours 24 24%
8-12 Hours 17 17%
12 Hours and above 07 07%
Total 100 100%
The consumers were asked about their surfing time on the internet to look for products on
digital media platforms. This question was included to find out the approximate
engagement time on the internet by the customers.

1%
19%

1-4 hours
4-8 hours
53% 8-12 hours
0 hours
27%

10. CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR

PREFERRED SOURCE TO GET AWARENESS OF VARIOUS BRANDS

SOURCE NO. OF RESPONDENTS PERCENTAGE

IN-STORE PROMOTION 15 15%
DIGITAL MEDIA 59 59%
OUTDOOR MEDIA 16 16%
WORD OF MOUTH 10 10%
TOTAL 100 100%

(Source: Survey data)

From the above it is clear that respondents are classified based on their preferred source to get
awareness of various brands, it shows that 15% of respondents prefer in-store promotion,
59% of respondents prefer digital media, 16% of respondents prefer outdoor media and the
rest of respondents prefer word of mouth.
It shows that majority of respondents that is 59% prefer digital media to get aware of various
brands.
120

100 100%

80

60 59%
100
40
59
20
15% 16%
15 16 10%
10
0
IN-STORE DIGITAL OUTDOOR WORD OF TOTAL
PROMOTION MEDIA MEDIA MOUTH

NO. OF RESPONDENTS PERCENTAGE

11. CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR

OPINION ON BENEFITS OF DIGITAL MARKETING OFFERED
OVER TRADITIONAL MARKETING
BENEFITS NO OF RESPONDENTS PERCENTAGE
TIME SAVING 45 45%
EASE OF SHOPPING 16 16%
LOW COST 25 25%
WIDE RANGE OF 14 14%
INFORMATION
TOTAL 100 100%

(Source: Survey data)

From the above it is clear that respondents are classified on the basis of their opinion on
benefits of digital media, it shows that 45% of respondents say that it is time saving, 16% of
respondents and the rest of the respondents say that it provides wide range of information.
So it is clear that as per the respondents the major benefit offered by digital media is time
saving.

120
100
100

80

60 NO OF RESPONDENTS
45
PERCENTAGE
40
25
20 16 14

45% 16% 25% 14% 100%

0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5

12. CLASSIFICATION OF RESPONDENTS ON THE BASIS OF

INFLUENCE OF DIGITAL MARKETING ON PURCHASE DECISION

LEVEL OF INFLUENCE NO. OF RESPONDENTS PERCENTAGE

INFLUENCED 36 36%
MUCH INFLUENCED 19 19%
PARTLY INFLUENCED 37 37%
NOT MUCH 8 8%
INFLUENCED
TOTAL 100 100%

(Source: Survey data)

From the above it is clear that 36% of the respondents’ purchase decision is influenced by the
digital media, 19% of the respondents’ purchase decision is much influenced, 37% of the
respondents’ purchase decision is partly influenced and rest of the respondents’ purchase
decision is not much influenced by the digital media.
It shows that majority of the respondents’ purchase decision is influenced by the digital
media.

36%

36

INFLUENCED
19% MUCH INFLUENCED
19
100% 100 PARTLY INFLUENCED
NOT MUCH INFLUENCED
TOTAL
37
8
37%

8%

13. CLASSIFICATION OF RESPONDENTS ON THE BASIS OF

FACTORS THEY CONSIDER WHILE PURCHASING THROUGH
DIGITAL MARKETING

FACTORS NO. OF RESPONDENTS PERCENTAGE

BRAND 34 34%
TRUSTED MEDIA 14 14%
PRICE 44 44%
SAFETY 8 8%
TOTAL 100 100%

(Source: Survey data)

From the above it is clear that respondents are classified on the basis of factors they consider
while purchasing through digital media. 34% of the respondents consider brand, 14% of the
respondents consider whether media is trusted or not, 44% of the respondents consider price
of the products and rest of the respondents i.e., 8% of the respondents consider safety.
It shows that majority of the respondents (44%) while purchasing through digital media
consider price factor.

100
90
80
70
44
60
50 34
PERCENTAGE
40 NO. OF RESPONDENTS
30
20 14 44
34
10 8
14
8
0
BRAND TRUSTED PRICE SAFETY
MEDIA

14. CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR

OPINION ABOUT SERVICES OF DIGITAL MARKETING TO

CUSTOMERS
OPENION NO. OF RESPONDENTS PERCENTAGE
AGREE 58 58%
DISAGREE 05 05%
NEITHER AGREE NOR 27 27%
DISAGREE
STRONGLHY AGREE 10 10%
STRONGLY DISAGREE 00 00%
TOTAL 100 100%

(Source: Survey data)

From the above it is clear that classification is made on the basis of opinion of respondents
whether digital marketing provides good service to customers or not. Here, 58% of the
respondents are agreed, 5% of the respondents are disagreed, 27% of the respondents are at a
neutral mode, 10% of the respondents are strongly agreed and none of the respondents are
strongly disagreed.
It shows that majority of the respondents have good opinion about the services of digital
media.
120

100
100

80

58
60 NO. OF RESPONDENTS
PERCENTAGE
40
27

20
10
5
58% 5% 27% 10% 0%
0 100%
0
0 1 2 3 4 5 6 7

15. CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR

OPINION ABOUT THE SAFETY OF DIGITAL MARKETING

LEVEL OF SAFETY NO. OF RESPONDENTS PERCENTAGE

SAFER 40 40%
NOT SAFER 07 07%
AVERAGE 47 47%
DON’T KNOW 06 06%
TOTAL 100 100%

(Source: Survey data)

From the above it is clear that 40% of the respondents opined that it is safer, 7% of the
respondents opined that it is not safer, 47% of the respondents opined that it is safer at an
average rate and rest of the respondents opined that they don’t know.
It shows that respondents have positive opinion about the safety in digital marketing.

40%

40
SAFER
7%
7 NOT SAFER
100% 100 AVERAGE
DON’T KNOW
47 TOTAL

6 47%

6%

16. CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR

SATISFACTION LEVEL WITH THE SERVICES OF DIGITAL
MARKETING TOOLS

LEVEL OF NO. OF RESPONDENTS PERCENTAGE

SATISFACTION
SATISFIED 45 45%
WELL SATISFIED 22 22%
NOT MUCH SATISFIED 28 28%
DISSATISFIED 05 05%
TOTAL 100 100%

(Source: Survey data)

From the above it is clear that respondents are classified on the basis of satisfaction level,
22% of the respondents are well satisfied, 28%% of the respondents are not much satisfied
and rest of the respondents are dissatisfied.
It shows that majority of the respondents are satisfied with the services of digital marketing
tools.

100%
TOTAL

5%
DISSATISFIED 5 100

28%
NOT MUCH SATISFIED
28
PERCENTAGE
22% NO. OF RESPONDENTS
WELL SATISFIED
22
45%
SATISFIED
45
0 10
20 30
40 50
60 70
80 90
100

17. CLASSIFICATION OF RESPONDENTS ON THE BASIS OF

LOOPHOLES OF DIGITAL MARKETING CARRYOVER
TRADITIONAL MARKETING TOOLS

LOOPHOLES NO. OF RESPONDENTS PERCENTAGE

MORE SUSPECTED 23 23%
PRIVACY ISSUE 28 28%
MORE SCOPE FOR 22 22%
FRAUDULENT ACTIVITIES
OFTEN INTERRUPTING 21 21%
LACK OF DEMONSTRATION 06 06%
TOTAL 100 100%
(Source: Survey data)
From the above it is clear that respondents are classified on the basis of loopholes of digital
marketing carryover traditional marketing tools. Here, 23% of the respondents say that it is
more suspected, 28% of the respondents say that it has privacy issue, 22% of the respondents
say that it has more scope for fraudulent activities, 21% of the respondents say that it is often
interrupting and rest of the respondents (6%) say that it has lack of demonstration.
It shows that respondents are more particular about privacy issue and digital media should
overcome it.

NO. OF RESPONDENTS

MORE SUSPECTED
PRIVACY ISSUE
23
MORE SCOPE FOR
28 FRAUDULENT ACTIVITIES
100
22 OFTEN INTERRUPTING
21 LACK OF DEMONSTRATION
6
TOTAL

18. CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR

OPINION ABOUT DELIVERY SERVICES OF DIGITAL MARKETING

OPENION NO. OF RESPONDENTS PERCENTAGE

VERY GOOD 31 31%
GOOD 45 45%
NEITHER GOOD NOR 16 16%
BAD
BAD 08 08%
TOTAL 100 100%

(Source: Survey data)

From the above it is clear that respondents are classified on the basis of their opinion about
delivery services of digital marketing. Here, 31% of the respondents say that it is very good,
45% of the respondents say that it is good, 16% of the respondents say that it is neither good
nor bad and remaining 8% of the respondents say that it is bad.
It shows that majority of the respondents opined positive about the delivery services.

NO. OF RESPONDENTS

VERY GOOD
31
GOOD
NEITHER GOOD NOR BAD
BAD
100 45 TOTAL

8 16

19. CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR

OPINION WHETHER DIGITAL MARKETING IS DOMINATING
TRADITIONAL WAY OF BUSINESS

OPENION NO. OF RESPONDENTS PERCENTAGE

STRONGLY AGREE 36 36%
AGREE 45 45%
NEITHER AGREE NOR 09 09%
DISAGREE
DISAGREE 10 10%
TOTAL 100 100%
(Source: Survey data)

From the above it is clear that respondents are classified based on their opinion about whether
digital marketing is dominating traditional way of business or not. Here, 36% of the
respondents strongly agree the statement, 45% of the respondents agree, 9% of the
respondents are at neutral stage, 10% of the respondents disagree this statement.
It shows that majority of the respondents opine that digital marketing is dominating
traditional way of business.
120

100 100

80

60 NO. OF RESPONDENTS
PERCENTAGE
45
40
36

20
9 10
0 36% 45% 9% 10% 100%
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5

20. CLASSIFICATION OF RESPONDENTS ON THE BASIS

OFTHEIR OPINION WHETHER DIGITAL MARKETING
MOTIVATE TO PURCHASE PRODUCTS?

TABLE SHOWING CUSTOMER VEIWPOINT

Particulars Number of Respondents Percentage of Respondents

Yes 62 62%

No 17 17%
 Maybe 21 21%

Total 100 100%

The questionnaire consisted of a question that took into consideration the

point of view of the customers. Its analysed if digital media platforms motivated
customers to make their purchases through various platforms.

21. CLASSIFICATION OF RESPONDENTS ON THE BASIS

OF THEIR FREQUENTLY VISITED SITES.
While we consider digital marketing and purchasing through digital media
platforms, we must also consider various sites from which the customers make
purchases. This helps us in understanding the strength of the digital marketing
strategy of each site and also to draw a comparison among the competitors.

TABLE SHOWING FREQUENTLY VISITED SITES

Particulars Number of Respondents Percentage of Respondents

Amazon 53 53%

Ajio 36 36%

Flipkart 45 45%

Jabong 10 10%

Myntra 36 36%

Snapdeal 14 14%

Meesho 01 01%

Others 05 05%

Total 100 100%

 It is observed that 53% of the respondents visit amazon, 45% of the respondents
visit Flipkart, 36% of the respondents purchase from Ajio and 36% of the
respondents visit Myntra. 14% of the respondents access Snapdeal, 10 % of the
respondents visit Jabong and 1% of them visit Meesho. It is also clear from the
graph that 5% of the respondents visit other than the sites mentioned above which
include Limeroad and E-Bay. This indicates that Amazon has the largest customer
base with Flipkart holding the second place and Ajio and Myntra holding the same
position as per the responses of the respondents who participated in the survey.
From the responses collected from the sample of the survey we can infer that
Amazon holds a special place in the minds of people when it comes to shopping
products online. Flipkart also holds a good position.

22. CLASSIFICATION OF RESPONDENTS ON THE BASIS OF

OPINION ON VARIOUS STATEMENTS

NEITHER
STRONGLY DISAGRE STRONGLY
STATEMENTS THEIR AGREE
AGREE AGREE NOR
E DISAGREE
DISAGREE
DIGITAL MARKETING IS
BEST FOR BUYING 31 51 13 02 03
IT PROVIDES BEST
SERVICE WITHIN LESS
PRICE 25 45 21 06 03
IT PROVIDES VARIETY OF
PRODUCTS 46 33 14 03 04
DIGITAL MARKET DOES
NOT REACH ALL
CATEGORIES OF PEOPLE
24 29 29 06 12
(Source: Survey data)

From the above it is clear that respondents have different opinion about the above statements.
Out of 100 respondents 82 respondents said that digital marketing is best for buying, 5
respondents said negatively and rest of the respondents are at neutral stage. It shows that
majority of the respondents are positive about its buying process.
When it comes to best service within less price, 70 respondents are positive, 9 respondents
are not satisfied and rest of the respondents are at neutral stage. It shows that majority of the
respondents are satisfied with the services of digital media with its price.

When it comes to offer variety of product, 79 respondents say that digital marketing provides
variety of products, 7 respondents say negatively and rest of the respondents are sat neutral
stage. It shows that majority respondents are saying that it provides variety of products.

When it comes to the matter of reaching of digital marketing to all the categories, 53
respondents say that it does not reach all categories of people, 18 respondents say it reaches
all categories of people, and rest of the respondents are at neutral stage. It shows that digital
marketing is not reached to all categories of people.

60

51
50

46
45

40

STATEMENTS
33 STRONGLY AGREE
31 AGREE
30
29 NEITHER AGREE NOR
DISAGREE
25 DISAGREE
24
STRONGLY DISAGREE
21
20

14
13
12
10

6 6
4
3 3 3
2
0 0 0 0 0
1 2 3 4
23. CUSTOMER SATISFACTION WITH RESPECT TO FACTORS

OF DIGITAL MARKETING

Various factors of digital media were taken into consideration and the
satisfaction level of the customer on the basis of ranks were recorded. This enabled
to understand the satisfactory factors of digital marketing.

TABLE SHOWING CUSTOMER SATISFACTION WITH RESCPECT TO

FACTORS OF DIGITAL MARKETING

Product
Convenient Clear
Particulars/Ranks Variance Cost
Accessibility and Quick Product
and Effective
Service Information
Comparison

1 29 17 25 16 23

2 16 26 21 21 20

3 32 34 32 36 33

4 18 13 14 22 14

5 05 09 07 05 10

Total 100 100 100 100 100

Customer satisfaction with respect to factors of digital marketing

The graph above shows the satisfaction level of the customers with respect to various
factors of digital marketing. It is observed that people ranked accessibility first, Product
variance and comparison was ranked second, convenient quick service was ranked third,
cos effectiveness was ranked number four and clear product information was ranked
fifth. Hence, we can conclude that the respondents are satisfied with accessibility factor
the most and least ranked was the product information factor this reason for this can be
assumed to be the difference in the perceived quality of the product and the received
quality of the product while accessibility gives the customer an easy access towards
products and its specifications.
 CHAPTER 5
FINDINGS, SUGGESTIONS AND CONCLUSION
FINDINGS:

1. From the study it is found that both the male and female categories are interested in
shopping through digital marketing tools.

2. It is found that majority of the respondents are belonged to 15-30 years which shows
youths are more passionate in shopping through digital marketing and also most of
them are educated.

3. From the study it is clear that 93% of the respondents are aware of digital marketing
which shows that digital marketing has great influence on people.

4. It is found that majority of the respondents are buying goods worth in between
Rs.1000- Rs.4000 which shows that they are not spending on costly products.

5. The study shows that out of the 100 respondents 45 respondents are using digital
media at less frequent level and 24 respondents are using at an average level. This
shows they are more cautious about the demerits of shopping through digital media.

6. When they were asked about their preferred source to get awareness of various
brands, it is found that majority of the people prefer digital media.

7. From the study it is found that almost majority of the people prefer digital media due
to its time saving benefit.

8. It is found that majority of the respondents are influenced by the digital media due to
its good service before and after delivery.

9. People prefer branded products and price while go for shopping through digital
marketing tools.

10. It is found that majority of the respondents are aware of loopholes of digital marketing
tools and they are more cautious about privacy issue, fraudulency and safety.

11. When respondents are been asked to give their opinion on domination of digital
marketing tools on traditional way of business, they agreed to the opinion that it
dominates traditional way of business.
SUGGESTIONS:

1. It should maintain the concentration of products on both male and female in order to
retain both the category of customers.

2. There is a need to focus on the products related to the middle aged people and elders
in order to attract them towards buying through online and other digital marketing
tools.

3. Websites and other digital marketing tools are to be designed in such a way that less
educated people also can use them.

4. There is a need to focus on promoting costly products and should provide easy EMI
facility at lesser interest rate.

5. As the study found that people are using digital media less frequently, it may be due
to its some drawbacks so it should focus on reducing its drawbacks.

6. There is a need to improve the service quality before and after the delivery so that
much more people get attracted towards digital marketing tools.

7. As the customers are more preferred on brand and price there is a need to provide
branded products with the reasonable price.

8. As the fraudulent activities and privacy issues lead to the lacking of customers from
the habit of shopping through digital media, there is a need to take some serious
actions in order to minimize these loopholes.
CONCLUSION:

In the past, consumers had sufficient time to visit shopping centers, searching for various
products. Many consumers prefer bargaining and decide the purchases after physical
examination of the commodities. The entire process can range from a few hours to weeks
depending on the product, quantity, quality and source of purchase. Today there is radical
change in the entire scenario. Everything in today’s world is Internet oriented like Electronic
Data Interchange, E-Mail, E-Business and E-Commerce.

E-Commerce is exchange of information using network-based technologies. In the present

high cost situation, e-Commerce can be used as a competitive strategy. It successfully
includes the entire online process of developing, marketing, selling, delivering, servicing and
paying for products and services.

Digital marketing is a vast growing technology. If it is properly utilized with assured safety
and security for the transactions, it will thrive into a highly competitive and dynamic
environment.

The study started with the aim to analyse the different issued related to digital marketing.
Based on the study it has been found that in case of digital marketing the most important
aspect is to connect with the users, providing them better service by way of safety, easy and
convenient usage. The study has also been revealed that in order to utilize the digital
marketing in an effective way, the companies are required design an effective platform. This
will definitely result in attracting the customers in a significant way.
 ANNEXURE

BIBLIOGRAPHY

Books

1. Dr. C N Sontakki - Marketing Management – Kalyani Publications

Articles

1. K R Mahalaxmi – Study on Impact of Digital Marketing in Customer Purchase

Decision (IJIRST) - International Journal for Innovative Research in Science and
Technology– ISSN (Online)– 2349-6010 – Page no. – 332-338

2. Anjalli Vachchani – Digital Marketing in India and its Challenges and Opportunities
Ahead – International Journal of Advanced Research– ISSN– 2320-5407 – Page no. –
1554-1558

3. P Sathya – A Study on Digital Marketing and its Impact – International Journal of

Science and Research (IJSR) – ISSN(Online) – 2319-7064 – Page no. – 862-868

4. Veena Tripathi – Impact of Online Marketing on Teenagers in India – International

Journal of Social Science and Management – ISSN- 2091-2986 – Page no. – 277-280

5. Surabhi Singh – Impact of Digital Marketing – AIMA Journal of Management and

Research Page no. 1-5

6. Rajeev Kaushik – Digital Marketing in Indian Market - International Journal of

Computational Engineering and Management (April 2016) – ISSN (Online)- 2230-
7893 – Page no.- 12-17

7. Andrew Stephen – The Role of Digital and Social Media Marketing Consumer
Behaviour – Current Opinion in Psychology Special Issue on Consumer Behaviour -
Page no.- 1-16

8. Niharika Satinder – A Study on Internet Market in India “Challenges and

Opportunities” – International Journal of Science Technology and Management –
ISSN -2394-1537- Page no.- 265-273
Websites
https://en.wikipedia.org/wiki/Digitalmarketing
http://www.digitaltechnology.institute/blog/impact-of-digital-marketing-on-consumer-
behaviour/
http://intelliassist.co.in/impact-digital-marketing-consumer-behavior/
https://www.inc.com/adam-heitzman/how-digital-marketing-transformed-the-consumer-
buying-process.html
https://pdfs.semanticscholar.org/0d34/18b475658af32197b6d1b9728fd48e8e5dff.pdf
 QUESTIONNAIRE

1. Name………………………………………………………………
2. Address……………………………………………………………
3. Gender:
a. Male b. Female
4. Age:
a. Below 15 years c. 31-50 years
b. 15-30 years d. Above 51 years
5. Education:
a. Up to SSLC c. Graduation
b. PUC d. Post Graduate
6. Occupation:
a. Student c. Professional
b. Employed d. Home maker
7. Income (Rs.):
a. Below 50,000 c. 1,00,000-2,00,000
b. 50,000-1,00,000 d. Above 2,00,000
8. Are you aware about digital marketing?
a. Yes b. No

9. How much do you normally spend (Rs.) in purchasing through digital marketing at once in?
a. Less than 1000 c. 4000-10000
b. 1000-4000 d. More than 10000
10. What is your frequency of using digital media?
a. Very low d. High
b. Low e. Very high
c. Moderate

11. Approximate time spent on digital media platforms per week

Code Time Select

1. 0 hours

2. 1-4 hours

3. 4-8 hours

4. 8-12 hours

5. 12 hours and above

12. Which source do you refer the most to get awareness of various brands?

a. In-store promotion c. Outdoor media

b. Digital media d. Word of mouth

13. What benefits does digital marketing offer over the traditional marketing?

a. Wide range of information

b. Low cost
c. Ease of shopping
d. Time saving

14. How does digital marketing influence on purchase decision?

a. Influenced c. Partly influenced

b. Much influenced d. Not much influenced

15. Which factor you consider while purchasing through digital marketing?

a. Brand c. Price
b. Trusted media d. Safety

16. Do you think digital marketing provides good service to customers?

a. Agree
b. Disagree
c. Neither agree nor disagree
d. Strongly agree
e. Strongly disagree

17. According to you, how much safer digital marketing is?

a. Safer c. Average

b. Not safer d. Don’t know

18. Are you satisfied with the services of digital marketing tools?

a. Satisfied c. Not much satisfied

b. Well satisfied d. Dissatisfied

19 What loopholes does digital marketing carry over traditional marketing tools?
 a. More suspected
b. Privacy issue
c. More scope for fraudulent activities
d. Often interrupting
e. Lack of demonstration

20. What is your opinion about the delivery services of Digital marketing?

a. Very good c. Neither good nor bad

b. Good d. Bad

21. Digital marketing is dominating traditional way of businesses do you agree?

c. Strongly agree
d. agree
e. Neither Agree or disagree
f. Disagree

22. Do you think that digital media platforms motivate you to purchase products?

Code Option Select

1. Yes

2. No

3. May be

23. Which of the following sites do you frequently visit?

Sites 1 2 3 4 5

Amazon

Ajio

Flipkart

Jabong

Myntra
Snapdeal

Others

24. Please tick the appropriate box for each of the statement given below

Particulars Strongly Agree Neither agree Disagree Strongly

agree or disagree disagree
Digital marketing is best
for buying
It provide best service
within less price
It provide variety of
product
Digital market does not
reach all categories of
people

25. On a scale of 1-5 how satisfied are you with the following factors of digital marketing

Points 1 2 3 4 5

Accessibility

Product Variants
and comparison

Cost effective

Convenient and
quick service

Clear product
information