Digital Marketing Practices on Consumer Purchasing Decision

of Selected Malls in Davao City

In Partial Fulfillment

Of the Requirements for the Course

Marketing Research (MM 201) under the Degree of

Bachelor of Science in Business Administration

Major in Marketing Management

JOHN MER M. CASTILLO

CHRISTINE ANN ALFUERTO

MARJORIE JAVIER

KHINETH CANDREJO

Submitted to: Melvin Jay M. Canoy

March 2024
 PREFACE

"The Influence of Digital Marketing Practices on Consumer Purchasing Decision

of Selected Malls in Davao City: A Study on the Role of Online Advertising, Social

Media, and E-commerce." This study aims to investigate the influence of digital

marketing strategies, such as online advertising, social media, and e-commerce, on

consumer behavior and purchasing decision in selected malls in Davao City. The

research will explore the extent to which digital marketing affects consumer decision-

making, and how it compares to traditional marketing methods. The study will also

examine the factors that influence consumer behavior in the context of digital marketing,

such as brand awareness, product information, and customer reviews. The findings of

this research can provide insights for businesses and marketers on how to optimize

their digital marketing strategies to attract and retain customers in the competitive retail

industry in Davao City

The researcher has gathered the necessary tools for studying digital marketing

practices on consumer decision of selected mall in Davao city. The study embodies an

Abstract summarizing the whole study, and Chapter 1 introduces the background,

objectives, hypothesis, literature review, theoretical framework, and significance of the

study. Chapter 2 outlines the research design, locale, instruments, population and

sample, and data collection methods.

.
 TABLE OF CONTENTS

TITLE PAGE I

PREFACE ii

ACKNOWLEDGMENT iii

TABLE OF CONTENTS iv

ABSTRACT v

Chapter 1. INTRODUCTION Page

Rationale 1

Research Objectives 4

Hypothesis 6

Review of Related Literature 6

Theoretical Framework 7

Conceptual Framework 7

Significance of the Study 10

Definition of Terms 12

Chapter 2. METHOD

Research Design 20
Research Locale 21

Population and Sample 21

Research Instrument 38

Data Collection 3
 ACKNOWLEDGEMENT

The researchers would like to express their gratitude and deep appreciation for

the remarkable assistance of the following persons who unselfishly have shared their

knowledge, time and effort for the realization of the study and completion of this

material. Without them this study would not have been accomplished.

To their parents, for the financial and undying support, and for the guidance and

prayers which will be cherished forever; to their friends and loved ones who helped and

showed their support.

To their research instructor, Professor Melvin Jay Canoy, who shared their ideas,

knowledge, advice, effort and for the assistance in all concerns in fulfilling this study.

The researcher is indebted to all those named herein, and to others whose contributions

have not been explicitly listed, for making this intellectual journey both rewarding and

memorable. Without their assistance, this thesis would not have been possible.

Above all, to the Almighty Father in heaven who has given the researchers

strength, protection, wisdom, and great determination for making this study possible. All

Glory and Honor belongs to God.

 ABSTRACT

The purpose of this study is to review and analyze some previous

literature related to practice and theory about branding and its influence on purchase
decisions in online and offline shopping. Nowadays digital age, malls face increasing
competition from online sellers and must adapt their marketing approaches to remain
relevant. Through a comprehensive review of literature and observed research
conducted in selected malls, this study explores the various ways in which digital
marketing influences consumer behavior and purchasing decisions. Targeted
advertising based on demographics, interests, and online behavior increases the
relevance of marketing messages, driving consumer engagement and foot traffic.
Promotions, discounts, and personalized offers delivered through digital channels
create incentives for consumers to make purchases.

The integration of digital and offline channels into seamless experiences enable
malls to provide cohesive and engaging shopping journeys for consumers. The
significance of digital marketing in driving consumer purchasing decisions within
selected malls. The importance of adopting innovative digital strategies to remain
competitive in the retail landscape and emphasizes the need for continuous adaptation
to evolving consumer preferences and behaviors in the digital era.

Keywords: Digital Marketing, consumer purchasing decisions, Consumer Loyalty

 Chapter 1

INTRODUCTION

Background of the study

Online shopping is one of the newest forms of online shopping. In the next years,

it may be the most popular way to buy because of its simplicity and ease of use, even

though many are afraid of it because of the possible risks. However, Ecommerce is

continuing to dominate the consumer playing field as spending preferences and comfort

levels radically shift with our new normal. And with the many perks of online shopping,

it’s no surprise that consumers have turned to screens instead of stores. In fact, 43% of

consumers say they would be fine if they never shopped in a physical store again, and

nearly three-quarters of consumers (73%) believe most of the consumer shopping will

happen online in the future (Brice, M-2021).

The Internet offers the opportunity to create new models and forms between

business organizations and customers; where the network aims to develop new

channels for information and services such as research, evaluation, price comparison,

needs assessment, product matching, search and security services. All this information

makes it easier for the customer to make a purchase decision. (Sweden & Haddad,

2006).
 Consumer behavior encompasses a wide range of concepts and is a widely

studied field due to its importance. Consumers follow complex processes to select,

consume and dispose of goods and services. These processes can include the

behavioral, mental and emotional responses of individuals or groups. In this regard,

consumer behavior combines ideas and concepts from various fields, including

economics, chemistry, biology and psychology. According to Chandan (2019), many

features, characteristics and factors influence the individual consumer in his decision-

making process, the retailers he chooses, the brands he chooses, his purchasing

behavior and purchasing habits.

Compulsive consumption, the constant desire to buy, seriously affects many consumers

and is a problem for many young people. Getting into debt, addiction, finding

satisfaction in materialism, or whatever. The following are suggestions from the

researchers that future researchers can use to learn more about the relationship

between online shopping today and teenagers; buying behavior.

Impulse buying behaviors are becoming more common and occur more often in

young people. Online stores benefited from the pandemic, as 4,444 people turned to

online stores for their quarantine needs. The change in shopping behavior has led

retailers to delve into the psychology of online shoppers. Advertisers are always looking

for an opportunity to make a sale. (Balgoa, N. K. G. (2021).

Statement of the Problem

This study aims to evaluate the influence of digital marketing practices on

consumer purchasing decisions in selected malls in Davao City. With the increasing

influence of online and social media marketing on consumer behavior, this research

seeks to understand the specific factors that drive purchasing decisions in the context of

the local mall environment. Specifically, this study sought to answer the following

questions:

1. To discover the efficiency of digital marketing practices on consumer purchasing

decision of selected mall in Davao City on terms of:

1.1 Website traffic

1.2 Social media engagement

1.3 Brand awareness

2. To determine the level of consumer purchasing decision of selected malls in

Davao City in terms of:

2.1 Brand preference

2.2 Shopping preferences

2.3 Consumer Loyalty

 3. To find out if there is a significant relationship between the digital marketing

practices on consumer purchasing decision of selected malls in Davao City?

4. To distinguish what domain of digital marketing practices has a significant

influence on consumer purchasing decision in Davao City?

Research Hypothesis

The following null hypothesis was tested at 0.05 level of significance.

1. There is no significant relationship between digital marketing practices and

consumer purchasing decisions in selected malls in Davao City.
2. There is no domain of digital marketing practices that significantly influences
consumer purchasing decision of selected malls in Davao City.

Review Related Literature

This section presents the synthesis of relevant literature and related studies providing

more knowledge and understanding of the impact of digital marketing on consumer

purchasing decision in the United Arab Emirates. The independent variable with the

following indicators: website traffic, social media engagement and brand awareness are

identified by e Bulunmaz (2016). On the other hand, the dependent variable determined

by Hanaysha (2016) with its indicators: Brand preference, shopping preference and

consumer loyalty.
 Digital Marketing Practices

Digital marketing is a type of marketing that uses internet-connected devices to

engage with customers where all electronic or electrical equipment, as well as electronic

media, are used in digital marketing to market or promote products, services, or brands

to the customers (Kaushik, 2019)

According to Camposano et al. (2021) digital marketing is a dual factor that

benefits both its consumer and industrial stakeholders. Marketers have found that

keeping up with changing client preferences and increasing competition has been

critical to their success in the long term. Due to the advent of online advertising, the

mediums used to sell items and services have shrunk in size while maintaining their

effectiveness.

A study by Gawas et al. (2018) found that digital marketing and customers' buying

decisions are intertwined. As previously said, clients are the primary beneficiaries of

digital marketing's effects. This means that a company's digital marketing activities

should take into account the preferences of its customers. In the same way, customers'

purchasing decisions can be significantly influenced in the other direction by digital

marketing.

Moreover, social media marketing is a strategy that involves using social media

platforms to promote products or services, engage with customers, and build brand

awareness (Moslehpour et al., 2020). There are several popular platforms that

businesses commonly used for marketing purposes such as Facebook, Instagram, Tik
Tok, Twitter and YouTube which play a crucial role in assisting customers with their

purchasing decision-making process. For instance, Utari et al. (2023) discovered that

Instagram's influence and effective use positively increases consumer buying interest,

highlighting the significance of Instagram as a marketing approach.

Another study by Meliawati et al. (2023) examined TikTok and found that social

media marketing affects purchase intention in a favorable way.

Another study by (Kaushik, 2019) of Digital marketing strategy is a type of

marketing that uses internet-connected devices to engage with customers where all

electronic or electrical equipment, as well as electronic media, are used in digital

marketing to market or promote products, services, or brands to the customers.

The first indicator of digital marketing practices is website traffic. Website traffic

refers to the number of visitors a website receives over a specific period. It is a crucial

metric in digital marketing that provides insights into user behavior, preferences, and the

effectiveness of online marketing strategies. By tracking website traffic, businesses can

measure the success of their digital marketing efforts and understand how users interact

with their online content. Key Performance Indicators (KPIs) related to website traffic,

such as the Website Traffic Lead Ratio, help businesses assess the quality of their

website visitors and their conversion into qualified leads. Regularly monitoring and

interpreting website traffic indicators is essential for evaluating digital marketing success

and ensuring continuous growth in online presence and engagement.

 Search engine optimization (SEO) is an activity that deals with optimizing web

pages, or websites to make them search engine friendly, with an aim to get better

website traffic. Here, changes on websites are made (on-page and off-page) to improve

quality of rankings and traffic. Getting traffic from users who use search engines to find

certain information, products, or a service is important to a website (Ankalkoti, 2017).

The importance of search engine optimization in marketing of a company stems from the

fact that the upcoming generation is becoming internet savvy, and it relies on search

engines like Google for accurate information, online shopping, or hiring services.

Search engine optimization (SEO) is a process that aims to improve the visibility

of a website or a web page in search engine's organic or unpaid search results. In

general, the higher a page ranks on the search results page, and more frequently a site

appears in the search results list, the more visitors it will receive from the search

engine's users (Sonawane, 2015).

The second indicator of digital marketing practices is social media engagement.

Social media engagement: To gauge the extent to which consumers are receptive to the

content that a brand shares on social media, managers tend to keep track of the level of

engagement their posts attain. Consumers can interact with these posts by “liking” or

“favoriting” them, by commenting on them, or by sharing them with others. These

behaviors, referred to as social media engagement (Muntinga, Moorman, and Smit

2011; Srinivasan, Rutz, and Pauwels 2016), constitute a desirable response to brand

content, as they help the content spread or “cascade” to other consumers.

Consumers' Social Media Engagement Behavior (SMEB) is defined in this study

as consumer engagement behavior with social media marketing content, including

brand generated and peer-generated content, on social media platforms such as

Facebook and YouTube (Popovic, 2016).

On social media, users can easily contribute to the content and communication

generated by brands and other users, or they can easily start a communication

themselves. In this way of interacting with brands, contributing to on-going

communication with different brands and other users is possible. This interaction

between brands and users is regarded as the “online engagement” concept within

relevant literature. Online engagement is considered to have three elements – cognitive,

affective and behavioral – that can be activated by users’ interactions with content on

social media (Dolan, Conduit, Fahy, & Goodman, 2016).

Lastly, the third indicator of digital marketing practices is brand awareness. Brand

awareness refers to the level of familiarity consumers have with a particular brand,

recognizing it by its name, logo, products, and other assets. It plays a crucial role in

consumer behavior, advertising management, and brand success. Brand awareness is

essential for businesses as it fosters trust, allows brands to tell their story, build equity,

and develop a strong identity that resonates with consumers.

According to Krisnawati (2016) Brand Awareness is the ability and ability of a

prospective customer to be able to recognize part of a brand or recall that a brand is

part of a certain category.

Brand awareness is imperative in making consumer decisions and raising brand

awareness increases the likelihood of purchasing the brand. When customers are

exposed to a brand, they are more likely to recognize it, making it simpler for them to
identify and recall it in particular circumstances. Additionally, brand awareness is a

crucial phenomenon because it significantly affects consumers’ purchase decisions and

intentions (Shahid et al., 2017).

In addition, brand awareness is defined as the buyer’s ability to identify the brand

in sufficient aspects to make an attitude toward the purchase. Companies must target

consumers in a way that makes it easy for them to recall and remember the product in

their minds based on the awareness they are providing to the customers (Saydan &

Dulek, 2019)

Consumer Purchasing Decision

Purchasing decisions are part of consumer behavior, namely the study of how

individuals, groups, and organizations choose, buy, use, and how goods, services,

ideas, or experiences satisfy their needs and wants. (Kotler et al., 2017).

According to Achrol & Kotler (2016), one of the dimensions in purchasing

decisions is the choice of brands that consumers consider. In choosing a particular

brand, consumers will see the suitability of price, benefits, and good product image.

In line with research conducted by Arifin et al. (2022) proves that product quality

influences purchasing decisions through brand image as a mediating variable, while in

other research also from Saraswati & Giantari (2022) proves that brand image mediates

positively and significantly the effect of product quality on purchasing decisions.

 According to (Yusuf, 2021), purchasing decisions are thoughts in which

individuals evaluate various options and make a choice on a product from many

choices.

(Gunawan, 2022) stated that a mall is a shopping center or place for exchange

and distribution of goods or services that are commercial in nature, involve careful

planning and design and also involve a manager, operational management and then

customers. If a mall can determine consumer purchasing decisions, then this will have

an impact on sales value and also visitors’ interest in coming to visit the mall. However,

on the other hand, if a mall cannot influence consumer purchasing decisions, it will have

an impact on sales from Tenants or Outlets which then also have an impact on other

entrepreneurs’ decisions to rent in the mall area.

Moreover, according to (Tjiptono, 2019) "Consumers buy a product not solely

because they are after its functional benefits, but more than that they are also looking

for certain meanings (such as self-image, prestige, even personality).

According to (Lutfie & Marcelino, 2020) indicators for purchasing decisions are as

follows: 1) Recognition of needs, namely the process of making purchasing decisions

where consumers recognize a problem or need. 2) Information search, which is a

purchasing decision-making process in which consumers can only add attention or

search for information and they are more interested in finding more information. 3)

Evaluation of various alternatives, namely the purchase decision process in which

consumers use this information to evaluate alternative brands that contain various

choices. 4) Decision Purchasing, namely the process of making purchasing decisions

where consumers actually buy the product. 5) Post-purchase behavior, namely the
process of evaluating the purchase decision that has been made before, whether it is in

accordance with the wants and needs that were needed before.

The first indicator of consumer purchasing decision is brand preference. Brand

preference is a notion that has interested scholars recently (Pool et al., 2018; Vongurai,

2020). Brand preference was defined as customers’ tendency towards certain brands

that review their cognitive information processing towards brand stimuli. This concept

highlighted the central control unit and the mental abilities of customers (Bettman et al.,

1975; Ebrahim et al., 2016).

Howard and Sheth (1969) suggest that brand preference refers to consumers’

predisposition towards certain brands that summarize their cognitive information

processing towards brand stimuli. This theory and other information processing models

(Bettman, Capon, & Lutz, 1975) emphasize both the central control unit and the mental

abilities of consumers. Therefore, it follows that a consumer’s perception about brand

attributes leads to preferences or attitudes, which affects his/her intentions and brand

choices (Bagozzi, 1982).

Brand preference is a measure of how much a consumer prefers a particular

brand compared to its competitors. It is usually determined by the consumer’s

perception of brand’s quality in addition to its ability in meet their needs. (Yi et al., 2022)
 According to (Ebrahim et al., 2016) expressed at the option assessment stage of

the consumer decision-making process (Amofah, 2015) Brand Loyalty is studied in

(Bobâlcă et al., 2012) marketing research literature as a component of one generic

loyalty or four dimensions “cognitive, affective, and action loyalty scale”.

The second indicator of consumer purchasing decisions is shopping preference.

For instance, Schulze (2020) claims that the positive factors that affect consumer

behavior toward online shopping (which will be referred to as OS throughout the paper)

are convenience, accessibility, limitless choice, product comparison, and reviews.

In addition, according to Silpa et al. (2016), consumers believe that Online

Shopping is better than Traditional Shopping and agree that the former will be used

more in the near future.

Jayalaxmi et al. (2014) claimed that OS (online shopping) has many advantages

and benefits, which is why many people prefer it over TS (traditional shopping). In

support of this, Devender & Kirti (2019) learned that OS is becoming more popular due

to the reduced time consumption, the variety of items offered, and the ease with which

customers can compare product pricing. However, the latter study also found that

people regarded TS as more satisfying, for they could inspect the quality of products in

person and easily purchase domestically produced goods through this mode. Similarly,

according to Gupta (2015), some people still prefer traditional TS over the alternative

option because, in the former, they could physically check the quality of products.

The third indicator of consumer purchasing decisions is consumer loyalty. A

customer’s loyalty is a customer’s attachment to a brand, store, manufacturer, service

provider or other entities based on favorable attitudes and behavioral responses such

as repeat purchase (Baran, Galka & Strunk, 2008). Customer loyalty is very essential to

the organization in order to retain its current customers. It is because customer’s loyalty

can serve several benefits to the organization. Loyal customers are less price-sensitive,

reduce marketing expenditures for attracting new customers and improved

organizational profitability (Rowley, 2005). Besides that, Raman (1999) and Bowen and

Chen (2001) stated that, loyal customers serve as a “fantastic marketing force” by

providing recommendations and spreading positive word of mouth. Moreover, loyal

customers cost less to serve, in part because they know the products and require less

information (Bowen & Chen, 2001).

Brand loyalty, on the other hand, is the degree to which a consumer continues to

purchase the same brand over time. Brand loyalty is typically measured by the

consumer’s frequency of purchase, their willingness to pay more for brand, also amount

of effort they are willing to put into finding the product. Moreover, (Hidayanti et al., 2018)

Theoretical Framework

This study anchored with the theory of Davis in 1989, can be applied to

understand consumers' acceptance and use of digital marketing channels in Davao City

malls. He argues that perceived usefulness and perceived ease of use influence

consumers and attitudes and intentions towards technology adoption. In this context,

consumers and perceptions of the usefulness and ease of use of digital marketing

platforms may influence their purchase decisions.

 A consumer decision process framework consisting of stages such as problem

identification, information search, alternative evaluation, purchase decision, and post-

purchase evaluation can help explain how digital marketing affects consumer purchase

decisions in malls in Davao City. Digital marketing can influence every stage by

providing information, shaping perceptions and facilitating the decision-making process.

Social influence theory suggests that individuals and behavior are influenced by the

actions, opinions and behavior of others.

In the context of digital marketing for malls in Davao City, the interplay of online

reviews, recommendations, and social media can influence consumer purchase

decisions. Positive reviews and peer recommendations can lead consumers to choose

one mall over another. Omnichannel marketing theory emphasizes the integration and

seamless coordination of multiple channels, such as online and offline, to deliver a

unified and personalized customer experience. In malls in Davao City, an effective

multi-channel marketing strategy can create synergy between digital marketing and the

physical shopping experience, increasing consumer engagement and influencing

purchase decisions.

Conceptual Framework
 Figure 1 below shows the relationship between the two variables in this study

which are the impact of digital marketing (an independent variable) on consumer

purchasing decision (dependent variable) in the United Arab Emirates. The independent

variable of the study is blended variable, which was identified by e Bulunmaz (2016) in

their study titled “Impact of digital marketing on consumer purchasing decision in the

United Arab Emirates” comprises the following indicators: website traffic, social media

engagement, and brand awareness.

On the other hand, the dependent variable determined by Hanaysha (2016) entitled

“The effect of ewom, online review & rating, and advertising information & and value

consumer preferences and their loyalty for brands: a study with special focus on working

women and cosmetic products” with its indicators: Brand preference, shopping

preference and consumer loyalty.

 Independent Dependent
Digital Marketing Consumer Purchasing
Practices Decisions
Brand Preference
Social Media Shopping Preference
Engagement
Consumer Loyalty
Brand Awareness
website traffic

. Figure 1. Conceptual framework showing the variables of the study.

Significance of the study

The study "Digital Marketing Practices on Consumer Purchasing Decisions of

Selected Mall in Davao City" is important because it examines how consumer behavior

in Davao City is affected by digital marketing tactics. Businesses in the area must

understand this relationship because it offers valuable insights into how to interact with

clients and increase sales.

Through examining the impact of digital marketing practices on customer buying

decisions, the research can provide Davao City businesses with invaluable insights for

maximizing their online marketing endeavors.

Furthermore, by customizing their digital strategies to better appeal to local

consumers, businesses may enhance sales and foster customer loyalty. This is made

possible by research.

The study's overall significance stems from its ability to improve Davao City firms'

digital marketing efforts by highlighting the relationship between online marketing

practices and consumer behavior.

Definition Of Terms

The following terms were operationally defined to ensure a comprehensive

understanding of the terminology employed in this study:

Digital Marketing Practices. This refers to website traffic, social media engagement,

and brand awareness.

Consumer Purchase Decision. This refers to the brand preference, shopping

preference and consumer loyalty

 Chapter 2
Method
This chapter presents the research methodology and process used in gathering
all information pertaining to the study. Specifically, it contains the study of research
design, the research respondents, the research instrument used, research procedure
and the statistical tools employed.

Research Design

The researchers used descriptive research methods. This method is more

appropriate because it uses the survey in collecting data from a wide by observing.
Goertzen (2017) stated that there are three purposes of the descriptive research method
which is: to describe, explain, and validate findings. Hence, the quantitative research
method minimizes the chances of personal biases. Furthermore, the data was described
quantitatively and examined the relations among a number of variables.

Research Locale

The research was conducted in Davao City, particularly in malls of Davao. It has
five malls which are Ayala Malls Abreeza, SM Lanang premier, Gaisano Mall of Davao,
The SM City, NCCC main Magsaysay. The malls open around 9AM until 10PM. If the
respondents live near the downtown area, they have 10 to 15 minutes travel.
Population and Sample

The target respondents would be young people, adults, and parents who like to
purchase online at selected malls in Davao City. For the sample the researcher could
select at least 100 respondent using stratified random sampling technique. By using
stratified random sampling, the researcher can ensure that sample reflects the diversity
within the respondents.

Research Instrument
 The questionnaire was modified. The researcher used a questionnaire as a tool
to conduct a survey from respondents. It consists of a series of questions as a way of
gathering information for the Digital Marketing on Consumer Purchasing Decision of
Selected Mall in Davao City. It contains about the purchasing decision of consumer, it
has 3 indicators: social media engagement, website traffic and brand awareness.

The survey questionnaire utilize scales and respondents were asked to indicate
whether they Strongly agree, agree, neutral, disagree, or strongly disagree to certain
questions.

Range of Means Descriptive Level Interpretation

This means that

4.20 - 5.00 Strongly Agree respondents strongly
agree with the statement.
This means that
3.40 - 4.19 Agree respondents agree with the
statement.
This means that
2.60 - 3.39 Moderate respondents neither agree.
This means that
1.80 - 2.59 Disagree respondents seldom
agree.
This means that
1.00 - 1.79 Strongly Disagree respondents don’t agree.

Data Collection

The researcher was given a task to do research and they decided about
purchasing of consumer in online store. For them to know which consumer prefers to
buy in a physical store or digital store. Consumers nowadays would rather buy online
rather than in physical stores. These changing demographics also present an
opportunity to businesspeople who can't rent a place for their business.
 The researchers go to malls of Davao City to look for a respondent to answer
their survey, they select at least 5 to 10 participants in each mall they go to. After
deciding to do an external and eternal assessment and gather the data using focus
group and survey the researcher use excel to tally the responses.

Statistical Treatment of Data

As soon as the researchers gathered the data, they were compiled, sorted and
organized and tabulated. They were subject to statistical treatment in order to answer
the questions proposed in the study.

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