Impact of Digital Marketing a Study on Consumer Purchase Decision
M. Narayanan
Research Scholar, Post Graduate and Research Department of Commerce, Vivekananda College
Tiruvedakam, West, Madurai – 625234. (Affiliated to Madurai Kamaraj University)
*Corresponding Author E-mail: smnarayanan431@gmail.com
ABSTRACT:
Financial Literacy enhances the ability to effectively monitoring of financial resources for developing the economic security of a person. Financial stability of economy is based on these terms and currently it is necessary for developing and developed country. Presently most of the countries are adopting various programmes for financial education. India is having large population, growing economy with national focus on inclusive growth and an urgent requirement to develop a vibrant and stable financial system. Financial literacy is the cognitive understanding of financial components and skills such as budgeting, investing, borrowing, taxation, and personal financial management. Achieving financial literacy is crucial in today’s society due to everyday facets of life, such as availing loans, mortgages, credit cards, investments, and health insurance. The study focuses on the financial literacy based on the banking services and insurances towards people residing in Sivaganga districts in Tamil Nadu.
Digital marketing spending trends in the US and globally offer valuable insight into the industry today. One encouraging finding is Forrester Research’s forecast that digital marketing spending will continue to rise through 2019. India is home to the second largest number of people in the world. It is also a major contributor to IT and Tech sectors in general. The country’s digital population is also growing fast. The number of people who are online and on SocialMedia is increasing with every passing day and companies are betting big and investing a lot in our country.
The increase of social media is another key trend which has been one of the most persistent medium of Digital Marketing around the world. From Facebook and Instagram to Snapchat and YouTube, both brands and marketers have started creating and publishing personalized content, stories and entertainment channels as a huge part of their marketing strategy. Currently, India is the 2nd largest user of Facebook and YouTube in the world and if this trend is to be believed, conventional marketing mediums like T.V. and Print will soon give way to Digital Marketing as the ace of spades in every brand’s pack of marketing cards. The report by the International Journal of Advanced Research Foundation revealed that summarized that India is getting to see the golden period of the Internet sector between 2013 to 2018 with incredible growth opportunities and secular growth adoption for E-Commerce, Internet Advertising, SocialMedia, Search, Online Content, and Services relating digital marketing.
REVIEW OF LITERATURE:
Brendan James Keegan, Jennifer Rowley, (2017), as organisations are increasing their investment in social media marketing (SMM), evaluation of such techniques is becoming increasingly important. The purpose of this paper is to contribute to knowledge regarding SMM strategy by developing a stage model of SMM evaluation and uncovering the challenges in this process. Interviews were conducted with 18 key informants working for specialist SMM agencies. Such informants are a particularly rich source, since they manage social media campaigns for a wide range of clients.
An exploratoryresearch was conducted and thematic analysis surfaced the key components of the SMM evaluation process and associated challenges. The SMM evaluation framework is developed. This framework has the following six stages: setting evaluation objectives, identifying key performance indicators (KPIs), identifying metrics, data collection and analysis, report generation and management decision making. Challenges associated with each stage of the framework are identified, and discussed with a view to better understanding decision making associated with social media strategies. Two key challenges are the agency-client relationship and the available social analytics tools. Despite an increasing body of research on social media objectives, KPIs and metrics, no previous study has explored how these components are embedded in a marketing campaign planning process. The paper also offers insights in the factors that make SMM evaluation complex and challenging. Recommendations for further research and practice are offered.
Xuebing Dong, Yaping Chang, Xiaojun Fan, (2017) Marketers recognize that the internet is crucial in the lives of consumers; thus, they invest money on online advertisements. Using multiple online media primarily influences the message acceptance of consumers. The synergistic effect of online multimedia relies on form, content, and sources of information, and time. The paper aims to discuss these issues. A model that reflects the influence of the characteristics of online multimedia on message response through message acceptance is established based on theories of information persuasion, encoding variability, and multiple-source assumption. Based on a survey of 411 online media users, the study applies partial least-squares regression to test the research model. The results show that variety of forms, complementary of contents, diversity of sources, and time interval influence message response via message strength. Complementary of contents and diversity of sources affect message response via perceived credibility. Synergy type moderates the relationship between variety of forms and perceived credibility and between diversity of sources and perceived credibility. The current study mainly tests the effect of these characteristics on message response and the moderating effect of synergy type. Future research can examine the effect of these characteristics on information seeking and consumption behavior and the moderating effect of the cognitive mode of consumers. This study provides insight into the characteristics of synergy and contributes to the literature on integrated marketing communication. The results provide guidance for practitioners to effectively plan online multimedia practices. This study explored the influence of the characteristics of online media synergy on message response through message acceptance. The study also discussed the moderating effect of the type of online multimedia synergy.
OBJECTIVES OF THE STUDY:
· To analyse the influence of digital marketing in purchase decision
· To know about the kind of products bought by utilizing digital channels
· To know the problems and satisfaction level of digital marketing among consumers.
RESEARCH METHODOLOGY:
The methodology is empirical in nature. It is primarily based on survey method and secondary method. Techniques like interviews and observations are employed in this study. Primary data were collected from the customers by the researcher with the help of structured interview schedule. About 50 samples were taken for the study the published and unpublished data were also use as secondary data. Primary data were collected from professionals by the researcher with the help of structured questionnaire. The study carried out with both primary and secondary data. The primary data was collected through structured questionnaire from samples of 50 respondents from the specified area. The samples have been considered by using non-probability technique (convenient sampling method) was validated and took it for further analysis. Secondary data is also being collected from articles, journals etc. this study data analysed at simple percentage analysis.
LIMITATION OF THE STUDY:
The study is confined only to Madurai district. Hence the result could not be generalized. The time taken by the researcher for the study is very limited. The sample size is very limited. Only 50 respondents were chosen for collecting data. So the researcher cannot derive more accurate results.
Data analysis and results Gender wise classification of respondents:
Table 1
|
S. No |
Gender |
No. of Respondents |
Percentage |
|
1 |
Male |
27 |
54% |
|
2 |
Female |
23 |
46% |
|
|
Total |
50 |
100 |
Sources; Primary data
The table-1 shows that the gender category, among total (50) respondents, 27 of the respondents are male and 23 of the respondents are female. It is inferred that, 54% of the respondents are male and the rest of the respondents 46% are female. There fore it can be concluded that the majority of the respondents 54% are male.
Age wise classification of respondents:
Table 2
|
S. No |
Age |
No. of Respondents |
Percentage |
|
1 |
18 – 28 |
17 |
34% |
|
2 |
29- 39 |
14 |
28% |
|
3 |
40 - 50 |
11 |
22% |
|
4 |
51 – 60 |
8 |
16% |
|
|
Total |
50 |
100 |
Sources: Primary data
The table-2 shows that the age category, among total (50) respondents, 17 of the respondents belong to the age group of ‘18-28, 14 belong to 29-39, 11 belong to 40-50, and 8 belong to 51-60. It is inferred that 34% of the respondents belong to the age group of 18-28, 28% belong to 29-39, 22% belong to 40-50, and 16% belong to 51-60. Thus the majority of the respondents 34% are aged between at 18-28.
Awareness of digital marketing:
Table 3
|
S. No |
Particulars |
No. of respondents |
% of respondents |
|
1. |
Friends/Relatives |
18 |
36.0 |
|
2. |
Business circle |
9 |
18.0 |
|
3. |
Internet |
13 |
26.0 |
|
4. |
Newspaper/ Magazines |
7 |
14.0 |
|
5. |
TV advertisements |
3 |
6.0 |
|
|
Total |
50 |
100 |
Source: Primary Data:
The table-3 shows that 18 respondents are came to know about digital marketing through friends/relatives, 9 are from business circle, 13 are from internet, 7 are from newspapers/ magazines and 3 are from TV advertisements. It is inferred that 36% of respondents came to know about digital marketing through friends/ relatives, 18% are from business circle, 26% are from internet, 14% are from newspaper/magazines and 6% are from TV advertisements. It is therefore concluded that majority of the respondents are came to know about digital marketing through friends/relatives.
Level of usage of digital channel:
Table 4
|
S. No |
Particulars |
No. of respondents |
% of respondents |
|
1. |
Weekly |
5 |
10.0 |
|
2. |
Twice in a month |
9 |
18.0 |
|
3. |
Once in a month |
19 |
39.0 |
|
4. |
Once in two month |
17 |
35.0 |
|
|
Total |
50 |
100 |
Source: Primary Data
The table-4 shows that 5 are using digital channel weekly, 9 are using twice in a month, 19 are using once in a month and 17 are using once in two month. It is inferred that 10% are using digital channel weekly, 18% are using twice in a month, 39% are using once in two months and 35% are using once in two months. It is therefore concluded that majority of the respondents are purchasing product through digital channel once in a month.
Kind of products bought by respondents
The table-5 shows that Apparels and accessories has been given the first place by the respondents in apparels and accessories for the question kind of product bought by respondents with the weighted average score of 4.48 which is followed by train/bus/flight ticket with the weighted score of 4.42. CD/DVD has been given the 6th place with least weighted score of 2.9.
Digital channel where customer used to purchase products:
The table-6 shows that online marketing has given the first place by the respondent for the question “digital channel where customer used to make purchase” with the weighted average score of 4.28 which is followed by social media marketing with the weighted score of 4.08 and search engine optimization has been given the 5th place with the least score of 2.82.
Table 5
|
S. No |
Kind of Products |
Frequency |
Weighted score |
Rank |
||||
|
Always |
Frequently |
Sometimes |
Rarely |
Never |
||||
|
1. |
Electronics |
125 |
20 |
36 |
12 |
|
3.9 |
4 |
|
2. |
CD/DVD |
20 |
60 |
30 |
28 |
2 |
2.9 |
6 |
|
3. |
Books |
20 |
56 |
57 |
14 |
7 |
3.06 |
5 |
|
4. |
Train/bus/flight tickets |
165 |
32 |
18 |
6 |
6 |
4.42 |
2 |
|
5. |
Movie tickets |
65 |
44 |
211 |
26 |
6 |
3.24 |
3 |
|
6. |
Apparels and accessories |
170 |
32 |
18 |
4 |
- |
4.48 |
1 |
Source: Primary Data
Table 6
|
S. No |
Digital Channel |
Frequency |
Weighted score |
Rank |
||||
|
Always |
Frequently |
Sometimes |
Rarely |
Never |
||||
|
1. |
Online Advertising |
140 |
52 |
15 |
6 |
1 |
4.28 |
1 |
|
2. |
E- Mail Marketing |
55 |
60 |
39 |
16 |
3 |
3.46 |
3 |
|
3. |
Social Media Marketing |
125 |
44 |
24 |
10 |
1 |
4.08 |
2 |
|
4. |
Text Message |
40 |
32 |
42 |
30 |
5 |
2.98 |
4 |
|
5. |
Search Engine Optimization |
35 |
32 |
48 |
14 |
12 |
2.82 |
5 |
Source: Primary Data
FINDINGS AND SUGGESTIONS:
· That the majority of the respondents 54% are male.
· The majority of the respondents 34% are aged between at 18-28.
· There fore concluded that majority of the respondents are came to know about digital marketing through friends/relatives.
· There fore concluded that majority of the respondents are purchasing product through digital channel once in a month.
· That Apparels and accessories has been given the first place by the respondents I apparels and accessories for the question kind of product bought by respondents with the weighted average score of 4.48 which is followed by train/bus/flight ticket with the weighted score of 4.42. CD/DVD has been given the 6th place with least weighted score of 2.9.
· That online marketing has given the first place by the respondent for the question “digital channel where customer used to make purchase” with the weighted average score of 4.28 which is followed by social media marketing with the weighted score of 4.08 and search engine optimization has been given the 5th place with the least score of 2.82.
SUGGESTION:
· The traders who are engaged in e- retailing should provide wide variety of products. So that the customer can able to choose a product according to their own needs.
· The online merchants should make their websites user friendly.
· The online merchant should install high security measures in their payment system. So that the customer can feel safe while making payment.
· E – Tailers should make necessary arrangement to deliver the product at right time and at the right place to satisfy their customer requirements.
· The terms and conditions for opening and operating online shopping account should be simplified.
· The retailers should establish customer communication channels in order to contact with the customer.
· Online merchants can sell apparels and accessories train/bus/flight tickets to boost their sales.
· Online merchant can design referral program which provides rewards for the person who refer the online shopping website to another person.
CONCLUSION:
The study is made in a particular geographical region the results of the study reveals that people aware of the digital channels In spite of their educational qualification, customers use to prefer digital channels to buy any sought of products, no much role of monthly income of people plays a role choosing a kind product buy through digital channels. Mostly people prefer shopping and electronic goods to buy through digital channels and its came to known from the study that there is a rise in purchase of convenience goods through digital channels among people. Effective reach of advertisements for convenience goods will increase the sales of those goods through digital channels. The customers are satisfied with products they bought through the digital channels this is considered as a positive sign for the growth digital channels in customer purchase decision. The present study shows that the influence of the digital channels not supporting in change of opinion of customer towards purchasing a product, but in near future the digital channels influence the customer purchase opinion as there is a consideration for digital channels among customers are evident. As mentioned earlier this study made in particular region accurate results on the variables could not be able to obtain. There exists a future scope to analyses the impact of digital channels on customer purchase decision for a wider geographic area to obtain more accurate results
ACKNOWLEDGEMENT:
The Tamil Nadu State Council for Science and Technology (TNSCST), Chennai, is warmly acknowledged by one of the authors, M.Narayanan, for providing financial assistance in the form of Research Funding for Research Scholars (RFRS) - 2021–2022. I would like to express my gratitude to them for their support. (TNSCST/ RFRS/VM/10/2021-2022).
REFERENCES:
1. Brendan James Keegan, Jennifer Rowley. Evaluation and decision making in social media marketing. Management Decision. 2017; 55(1): 15-31.
2. Xuebing Dong, Yaping Chang, Xiaojun Fan, Effects of the characteristics of online multimedia synergy on consumers’ message acceptance and message response. Online Information Review. 2017; 41(5): 710-727
3. http://lexicon.ft.com/Term?term=digital-marketing
4. http://www.amsreview.org/amsrev/theory/giese00-01.html
5. http://www.businessdictionary.com/definition/digital-marketing.html
6. http://www.entrepreneur.com/encyclopedia/affiliate-marketing
7. http://www.sas.com/en_us/insights/marketing/digital-marketing.html
8. http://www.simplydigitalmarketing.com/what-is-digital-marketing
Received on 20.12.2023 Modified on 04.02.2024
Accepted on 12.04.2024 ©AandV Publications All right reserved
Asian Journal of Management. 2024;15(2):181-184.
DOI: 10.52711/2321-5763.2024.00029