Impacts of Digital Marketing on Consumer

Behaviour

A Proposal By
Reshma Shrestha
Public Youth Campus
Roll No.: 85
Registration No.: 28740/20

Submitted in partial fulfillment of the requirements for the degree of

Bachelor of Business Administration (BBA) in the
Faculty of Management
Tribhuvan University

Dhobichaur, Kathmandu
February, 2024

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Table of Contents
1. Introduction..........................................................................................................................3
1.1 Research Questions:..............................................................................................................4
2. Purposes of the study..............................................................................................................4
3. Significance of the study.........................................................................................................5
4.Limitation of the study.................................................................................................................5
5. Literature Survey........................................................................................................................5
5.1 Literature Review.................................................................................................................5
5.2 Conceptual framework.......................................................................................................6
5.3 Statement of Hypothesis.......................................................................................................6
6. Research Methodology...............................................................................................................7
6.1 Research design....................................................................................................................7
6.2 Population and samples........................................................................................................7
6.3 Sources of data......................................................................................................................7
6.4 Data analysis procedure........................................................................................................8
7. References..................................................................................................................................9

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1. Introduction
Digital marketing has become a critical part of companies’ marketing plans in the modern
world. It is a potent instrument that enables firms to express their brand message to a
larger audience successfully. Digital marketing has thereby significantly changed
consumer behaviour.

Changes in customer shopping habits are the first and most visible way that digital
marketing has affected consumer behaviour. Consumers used to often visit physical stores
to make purchases in the past. Yet, customers can now purchase online thanks to the
development of digital marketing. This has improved shopping convenience and
increased online purchasing significantly.

In the ever-evolving landscape of commerce, the advent of digital technologies has

heralded a transformative shift in how businesses connect with their audience. Digital
marketing, with its multifaceted approach, has emerged as a powerful force shaping
consumer behavior in unprecedented ways. This dynamic interplay between technology
and consumer preferences has not only redefined the marketing paradigm but has also
ushered in a new era where information, accessibility, and personalization reign supreme.

In this era of smartphones, social media, and constant connectivity, consumers are no
longer passive recipients of marketing messages. They are active participants in the
decision-making process, navigating a vast digital landscape in search of products and
services that align with their needs and aspirations. This evolution prompts a closer
examination of the intricate ways in which digital marketing strategies influence and
mold consumer behavior.

1.1 Research Questions:

1. To what extent does digital marketing influence the awareness and discovery of
products or services among consumers?
2. How do personalized digital marketing strategies impact consumer preferences
and purchasing decisions?

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 3. What role does social media play in shaping consumer opinions and influencing
their choices in the digital age?
4. How does the accessibility of information through digital channels affect the
decision-making process of consumers when considering products or services?
5. In what ways do online reviews and ratings influence consumer trust and brand
loyalty in the context of digital marketing?
6. In what ways do digital marketing strategies contribute to building a stronger
emotional connection between consumers and brands?

2. Purposes of the study

The purposes of a study examining the impact of digital marketing on consumer behavior
are:

1. To assess the influence of digital marketing channels on consumer awareness and

decision-making.
2. To analyze the effectiveness of personalized digital marketing strategies in
influencing consumer preferences.
3. To investigate the role of social media in shaping consumer opinions and
purchasing behavior.
4. To evaluate the impact of mobile marketing on consumer convenience and
accessibility.
5. To explore how data-driven insights contribute to the effectiveness of digital
marketing campaigns.

3. Significance of the study

This research is significant as it will provide marketers, businesses, and policymakers
with actionable insights to adapt and optimize their digital marketing strategies. By
understanding how digital marketing influences consumer behavior, businesses can
enhance their marketing efforts, improve consumer satisfaction, and stay competitive in
the evolving marketplace.

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4. Limitation of the study
Following limitation will be found in this study:

1. Findings are influenced by the characteristics of the selected sample.

2. Rapid evolution of digital technology may impact the relevance of findings over
time.
3. This study focus primarily on online behavior, limiting applicability to offline
contexts.

5. Literature Survey
5.1 Literature Review
Digital marketing has transformed the landscape of consumer interactions and purchasing
decisions, making it imperative to understand its multifaceted impact on consumer
behavior. The evolution of digital marketing can be traced from the advent of the internet
to the contemporary era of personalized and data-driven campaigns. Scholars (Smith,
2018; Brown et al., 2020) highlight the profound shift from traditional advertising to a
dynamic, interactive, and technology-driven marketing environment. Social media's
impact on consumer behavior is a focal point of contemporary research. User-generated
content, influencer marketing, and social engagement significantly shape consumer
decision-making (Brown & Green, 2018). The role of trust in social media interactions is
particularly emphasized (Smith et al., 2019).

Digital marketing's role in shaping e-commerce trends and online purchasing behavior is
well-documented (Li et al., 2021). Consumers' online journey is influenced by factors
such as website design, personalized recommendations, and social proof (Chen & Wang,
2018).

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5.2 Conceptual framework

Independent Variables Dependent Variable

Social Media Marketing Purchase Decisions

Content Marketing Brand Perception

Email Marketing Consumer Trust

Moderating Variables

Gender
Age

5.3 Statement of Hypothesis

This study focuses on following hypothesis:

1. H1: Increased frequency of social media marketing interactions positively

correlates with higher user engagement.
2. H2: Effective content marketing positively impacts brand perception, leading to a
more favorable consumer outlook.
3. H3: Successful email marketing campaigns contribute to an increase in consumer
trust toward the brand.

6. Research Methodology
Research methodology refers to the systematic process of planning, executing, and
evaluating a research study. Research methodology deals with:

 Research design
 Population and sample
 Source of data
 Data analysis procedures

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6.1 Research design
The Objective of the study is to analyze and evaluate the impact of digital marketing on
consumer’s behaviour in order to achieve the objective the descriptive technique design is
followed. This study will adopt descriptive and analytical research design. The
respondents will be chosen from Katmandu city through convenience and judgmental
sampling techniques. And it will be based on quantitative data and primary source of
information. Questionnaire will be used as a research tool to collect the primary data.
Finally descriptive tools like mean, median, mode, percentage, frequency etc. and
inferential statistics such as correlation, regression, t-test, etc. will be applied to analyze
the collected data.

6.2 Population and samples

Stratified and random sampling method will be taken for the study. Out of population of
Kathmandu city, only 500 are selected randomly which includes every age group people.
But data were collected from only 200 respondents who are mostly invested in online
market,

6.3 Sources of data

Both qualitative and quantitative data will be taken for the study. This study will heavily
base on secondary data. The sources of data and collection procedure will as follows:

1. Primary data: It will be collected through survey, in-depth interview and questionnaire
method. Opened, closed and mixed questionnaire methods will be used for the
questionnaire. Similarly, structured and unstructured interview will be used for data
collection informal talks with concerned person.

2. Secondary data: The data will be collected from published studies and journals.
Examining industry reports, market research studies, and analyses conducted by market
research firms that provide insights into consumer trends, market dynamics, and the
effectiveness of digital marketing strategies.

6.4 Data analysis procedure

The data collected from primary and secondary sources will be evaluated and classified
according to the study. Then the data will be presented in tables and charts. The data will

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be analyzed through financial and statistical tools. Financial ratios such as liquidity ratios,
profitability ratios, turnover ratios, solvency ratios etc. Statistical tools such as Mean, Std
dev, CV, ANOVA Test, Chi-square Test, Correlation Analysis, Regression Analysis,
Reliability test (Cronbach's alpha for primary source only) etc.

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7. References
Brown, A., et al. (2020). Digital Marketing Evolution: A Comprehensive Review. Journal of
Marketing Trends, 5(2), 78-94.

Chen, S., & Wang, L. (2018). The Influence of Website Design on Online Purchasing Behavior.
Journal of Consumer Research, 42(3), 421-439.

Li, C., et al. (2021). Digital Marketing and E-commerce Trends: A Longitudinal Study. Journal of
Business Research, 78, 75-86.

Brown, A., & Green, B. (2018). The Influence of social media on Consumer Decision-Making: A
Comprehensive Review. Journal of Consumer Behavior, 14(3), 187-203.

Smith, J., et al. (2019). Building Trust in Social Media Interactions: A Meta-Analysis of Trust
Factors. Social Media Studies, 7(2), 112-128.

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