CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter primarily presents the different researches and other literaterature form both
foreign and local researchers, which have significant bearings on the variables included in the
research. It focuses on several aspects that will help in the development of this study. The study
is generally concentrating on the Impact of Digital Marketing During Covid-19 Pandemic. The
literatures of this study came from books, journals, articles, electronic materials such as PDF or
E-Book, and other existing thesis and dissertations, foreign and local that are believed to be

useful in the advancement of awareness concerning the study.

FOREIGN LITERATURES

According to Dash and Chakaraborty (2021) in their Article entitled “Digital

Transformation Of Marketing Strategies during a Pandemic: Evidence from an Emerging
Economy during COVID-19" This study explores the relationship between digital marketing
practices, customer satisfaction, customer involvement, and purchase intention. The focus is on
the life insurance digital marketing strategies during a pandemic and the resultant lockdown and
shutdown. This work sought to analyze the digital transformation of marketing practices and the
customers’ resultant purchase intentions. COVID-19 was taken as the prevailing pandemic and
its impact on the digital transformation of marketing strategies. Five dimensions of digital
marketing strategies with eighteen items and three items each of customer satisfaction and
purchase intention were considered for practical purposes. It used structural equation modeling
to study 535 responses of life insurance customers. Findings indicate that SEM/SEO, display,
and E-CRM practices significantly impacted customer satisfaction and purchase intention.
Further, a mediation-cum-moderation approach was undertaken. Customer satisfaction
significantly affected purchase intention and played a good mediator between digital marketing
practices and purchase intention. Additionally, customer involvement moderated the relationship
between content marketing and communication with purchase intention. This research work
helps life insurance marketers in general. The digital channel managers expressly understand
their key areas of strengths regarding the five dimensions of digital marketing strategies.
Accordingly, they frame their plans for decision-making to improve customer satisfaction and
resultant purchase intentions. It provides a direction for future adoption of specific marketing
strategies during a pandemic and consequent shutdown and lockdowns.

According to Saha and Kar (2020) in their Article entitled “Digital marketing during a
a pandemic: A study on impact of digital marketing on consumer perception during lockdown in
Guwahati city" There are 3 basic necessities of survival, namely food, clothing and housing, now
internet is also considered as a necessity of survival. l. There are around 4.54 billion active
internet users in the world. India is the second largest online market in the world with over 560
million internet users. With people commonly spending an average of 3 hours and 15 minutes on
their phones every day, online marketing and advertising has established as the most result-
oriented department for running a successful business. Aside from the health threats this virus
has brought to the public, it has devastated the fiscal sectors as well. With people losing jobs,
businesses making losses, cash flow hurdled and many more repercussions of the world being hit
by Corona Virus, it is a difficult time for everyone. This study is about the impact of Digital
Marketing during Pandemic. In Marketing “Customer perception” pertains to customer
awareness, satisfaction, their impacts, and their perspectives about the business, products, and
brand. And perception influences decision making of buyers and is considered a huge success
ingredientin the retail industry. Brands that observe and understand customer perception and its
promoting elements can recognize opportunities better to enhance customer experiences.
Perception not only impacts each individual sale, it also moulds the long-term relationships that
customers initiate with the brand. According to Forbes, “We live in an era where the perception
of a brand is no longer reliant on the quality of a product. Instead, a brand’s reputation is reliant
on the perceived value to its customers and expands much further than whether or not the
product works.” Digital marketing is the element of marketing that makes use of internet and
online based digital technologies such as desktop computers, mobile phones and other digital
media and platforms to promote products and services. Its development during the 1990s and
2000s changed the way brands and businesses use technology for marketing. As digital platforms
became increasingly incorporated into marketing plans and everyday life, and as people
increasingly use digital devices instead of visiting physical shops, digital analysis on consumer
perception towards digital marketing and attempted to identify the impact of customer perception
towards digital marketing. They further highlighted the scope of digital marketing in the Indian
market and its various elements. Rai (2018) [11]. studied the relevance of digital marketing in
the present competitive era in the Allahabad district of Uttar Pradesh and examined the impact of
digital marketing on consumers purchase and Sankar (2019) [12]. emphasised on social media
advertising to understand consumer perception towards online advertisement and its present
trend to advertise the products in order to grab greater attention from digital users. He further
highlighted the impact and influence that has been created by online advertisement among
consumers.

LOCAL LITEARATURES

According to Arreola (2020) in his article “The New Normal of Increased Online
Business" Social media and virtual meetings, domestically and across the globe, have become
the “new normal” as people strive to keep normalcy in their lives amid pandemic restrictions.
Here in the Philippines, Digital 2020 April Statshot report by Hootsuite and We Are Social
revealed that 64% of Filipino internet users are spending more time on social media, with 23%
indicating an increased activity in their online shopping activity. With consumers resorting more
to online shopping amid pandemic restrictions, entrepreneurs have embraced the digital
phenomenon for online shopping even more. E-commerce websites such as Lazada and Shopee
are at the forefront of these online shopping platforms with expected surges in sales revenues in
millions of pesos. Technology has already transformed online business transactions into an
infinite marketplace where conducting business has become more convenient and efficient for
both vendors and vendees.

According to Manila (2020) in their article entitled “Digital Transformation Key to

Recovery of Education and Business Sectors Amid Pandemic” As part of the Philippine
Preparedness Partnership (PhilPrep), the Philippine Disaster Resilience Foundation (PDRF)
recently highlighted the need for strengthened collaboration in digital transformation during a
webinar titled “The Digital Shift: Adapting to Business and Education Challenges in the New
Normal”, in which key representatives from government agencies and the private sector shared
their current, future, and proposed joint efforts in helping educators and businesses adapt to the
new normal. Held simultaneously via Zoom, Youtube, and Facebook, the event was attended by
over 200 educators and micro, small, and medium enterprise (MSME) owners. To highlight the
challenges brought about by lockdown limitations to both the business and education sectors and
explore current and future solutions related to digital transformation in the new normal, the
webinar focused on the following topics: conducting online marketing and training, analyzing
consumer behavior, embracing e-commerce, and securing data online. Digital transformation
boosts opportunities for MSMEs in attracting more clients. Having an online presence affords
greater visibility and wider outreach to previously untapped markets. The COVID-19 pandemic
challenges the government, private sector, and development organizations to provide web-based
tools and platforms to help local businesses survive and thrive. We must work together in
building the capacity of MSMEs to further improve the quality and delivery of their products and
services,” said Edwin Salonga, Asian Disaster Preparedness Center’s Country Program Manager
for the Philippines).
 According to Lagman (2022) in its article entitled “Digital Marketing Trends Small
Businesses Should Know This 2022" Talk of how the pandemic has changed the way we do
things won’t be getting old any time soon. Even as we adjust and begin learning to navigate our
post-COVID reality, you can count on it to still cause more significant shifts, especially in
business. In the Philippines (as with the rest of the world), e-commerce is booming. During last
December’s Philippine Startup Week 2021, citing data from Google, Temasek, and Bain and
Company, these key figures regarding the Philippines’ e-commerce scene were reported: 132%
e-commerce growth in the past year; New digital consumers are up to 12 million, and; 99% of
digital consumers are likely to continue using e-commerce. But while those figures spell out
hope for Philippine MSMEs, they also point out challenges. Small businesses can look forward
to recovering from the blows of the pandemic but not without adequate support. Ultimately,
protecting your customers’ data privacy is non-negotiable in digital marketing – even if it comes
at the cost of generating reports for your online marketing efforts. At the end of the day,
resolving that issue is just a matter of optimizing your ad campaigns and finding creative and
relevant ways to reach out to your existing customers.

FOREIGN STUDIES

According to Papadopoulos et al. (2015). From their research entitled “Digital Marketing
during the COVID-19 Pandemic: A Case Study of its Adoption by Furniture Manufacturers in
Malaysia" Establishing a new normal for marketing in the post-pandemic world requires a new
approach. Surviving in the age of the empowered customer, with less physical meeting and social
distancing renders the traditional mass-marketing tactics almost useless. In this context,
understanding the role of technology in shaping the marketplace and, more importantly,
engaging the social media as part of the marketing toolbox becomes a strategic imperative
(Constantinides 2014). Social media platforms have made customers more sophisticated and has
paved the way for the development of new tactics in searching, evaluating, choosing, and buying
goods and services (Albors et al. 2008). Previous research has shown that customer behavioral
trends are increasingly rooted in social media usage, especially among the generation-Y
consumers. Digitalization has also increased the demand for customized products and has opened
opportunities for customers to get actively involved in the process of product development (Kim
et al. 2008; Drury 2008). As customers want to have more influence in various stages of the
business process, such developments have influenced the way marketers operate and affect
marketing practices on the strategic and tactical levels, which has presented marketers with
difficult choices and challenges (Winer 2009). Some of the largest furniture retailers in the
United States and the European Union are allowing greater product customization, where
marketers fulfil the ideas and wishes of consumers by incorporating these requirements into the
finished furniture products. This practice is known as co-creation, and it allows the customers to
share their ideas in product development and testing to ensure that the demands of customers are
met (Papadopoulos et al. 2015).

According to Alfrian et al. (2020). From their research entitled “Digital

Marketing Strategy to Survive During Covid-19 Pandemic" Indonesia is
currently experiencing the spread of the Covid-19 virus, which has not subsided. The
government's appeal to prevent the spread of this virus requires the public to stay at home.
Uncertainty during the COVID-19 pandemic has resulted in business actors, one of which is the
Coffee Shop, which has experienced a decline in income. For this reason, coffee shops must have
a strategy to survive during the COVID-19 pandemic. Digital marketing strategy is a form of
business to promote and introduce a brand and product using digital media. It is the right step to
survive during this pandemic. This study aims to find out how to apply digital marketing
strategies to BC Street Coffee to be able to survive during the covid-19 pandemic. This study
uses a qualitative method by selecting a case study on BC Street Coffee through interviews and
documentation to the intended informants. Informants in this study were owners, employees, and
customers. Based on the results of the interview, BC Street Coffee implemented a digital
marketing strategy to survive during the covid-19 pandemic with several strategies, namely 1)
Implementing social media marketing, BC Street Coffee used Instagram and Facebook as
marketing media by utilizing photo and video features to disseminate information about BC
Street Coffee and promos that apply to the delivery application (GoFood & GrabFood)
consumers so they can find out the products offered by BC Street Coffee, 2) Implement content
marketing, BC Street Coffee uses marketing content to help introduce products through features-
features adopted from social media, using messages that are packaged creatively using attractive
photos, captions, hashtags, and videos. And BC Street Coffee uses or collaborates with local
influencers in marketing or introducing products.

LOCAL STUDIES

According to Lugtu (2021) in the study of “Digital Marketing for MSMEs” Supporting
local has been the battle cry for a lot of us Filipinos during this Covid-19 pandemic period. With
the closure of many establishments, particularly in food and business, supporting local helps and
gives our fellow citizens continued motivation and encouragement to carry on and support their
own employees with sustained livelihood. It is also at this point in time that digital marketing
continues to pave a sustainable path for our micro, small and medium enterprises or MSMEs to
thrive in their business. However, the generational differences present makes it challenging for
some to understand how to take advantage of digital marketing. It is for this reason that we, from
time to time, enable our MSMEs with Digital Marketing 101 in collaboration with some of our
government agencies. Simply put, digital marketing is the digital version of the traditional
marketing that we are more familiar with. What you may be used to seeing in the newspapers
may now be similarly seen online in their website. The same applies to what we hear on the radio
or what we see on TV. All of these items of information are equally captured online and
accessible in many different platforms. This is the essence of digital marketing. Within the
digital marketing spectrum, social media management is one of the more popular platforms of
choice. Facebook commands approximately 83 million users already in the country, and this is a
strong, powerful base to begin with if you're an MSME wanting to maximize the reach of your
products and services.

According to Quiocho (2020) From her study entitled “Business Struggles in Quarantine:
Digital Marketing During COVID-19 in the Philippines" Digital marketing during COVID-19 in
the Philippines will be the deciding factor for the future of a lot of brands. Even with quarantine
and the disruption of general operations, you need to maintain your communications and nurture
your connection with your audience. These disruptions mean consumer behavior is changing,
which also means that brands need to re-evaluate their marketing strategies. After all, most
people are stuck at home. Digital channels have become necessary for staying in touch with your
audience amidst this crisis. Whether you’re a digital marketing agency in the Philippines or the
owner of a small business, navigating the pandemic and learning how to utilize digital marketing
during COVID-19 in the Philippines could make or break your brand or business.

According to Kabagni (2020) from her study entitled “Marikina Shifts to Digital
Marketing Strategies amid crisis" MANILA – The local government of Marikina is shifting to
digital marketing and selling of products to revive the city's manufacturing industries hard-hit by
the coronavirus disease 2019 (Covid-19) pandemic, Mayor Marcelino Teodoro said Monday.
"Almost 80 percent of various manufacturing industry's production has stopped, while the 20
percent were able to continue because of using digital strategies in their marketing and selling,"
Teodoro said in Filipino during a virtual briefing with Presidential Spokesperson Harry Roque.
Marikina City is dubbed as the shoe capital of the Philippines with its thriving industry of shoe
factories. However, some manufacturing businesses in the city were forced to close, some have
reduced staffing and many local businesses which stayed afloat continue to endure the impacts of
the health crisis. Teodoro said the local government has been implementing strategies to avoid
massive economic impacts of the pandemic and backing up those manufacturing workers to
survive amid the pandemic. "Kaya nga nagshishift kami ngayon ng platform sa pagma-market at
pagtitinda sa digital platform (That's why we are shifting into digital marketing and selling
platform)," he said.

PREPARED BY: LEADER:CEREZO EL-JAY C.

ASSISTANT LEADER:SECAN, REIHANN S.
SECRETARY:MACAPIA, CHARIESE MAY D.
MEMBERS: AMANG, KYLA DANE T.
ORALLO, YASMINE ECIA NICOLE
VERDEJO, CHRISHELLE HANNAH S.
ROSBERO, ROSBEL GYPSY YONNA
DELOS SANTOS, ERYZA MAE D.