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A STUDY OF THE IMPACT OF „DIGITAL MARKETING‟ ON E-COMMERCE BUSINESS
A STUDY OF THE IMPACT OF „DIGITAL MARKETING‟ ON E-COMMERCE BUSINESS
Submitted by
Ravindra Khedkar
Research Centre
May-2019
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INDEX
CONTENTS
Acknowledgement II
Guide Certificate IV
Declaration V
Abstract VI
Abbreviation XVI
i
INDEX
Sr. Page
No. CHAPTER No.
CHAPTER NO. 1. INTRODUCTION OF THE
STUDIES 1 -47
1.1 Introduction of chapter 2
1.2 Background of the Study 3
1.3 Epidemic Statements 4
1.4 Purpose of the Study 5
1.5 Definition of Terms 8
1.5.1 Definition of Marketing 8
1.5.2 Definition of Direct Marketing 9
1.5.3 Definition of ‘Digital’ 10
1.5.4 Definition of Digital marketing 11
1.5.5 Definition of E-commerce 12
1.5.6 Definition of Social Media 13
1.6 History of Digital Marketing 15
1.7 Digital Marketing Platforms 21
1.7.1 Email 23
1.7.2 Search Engine 24
1.7.3 Digital Display 25
1.7.4 Social Media: 27
1.8 History and overview of E-commerce 29
1.8.1 Elements of e-commerce 33
1.8.2 Stakeholders in e-commerce 36
ii
1.9 Study of Digital Media Marketing in e-commerce 37
1.10. Problem Statements 39
1.11 Significance of Study 42
1.12 Limitations of Study 45
1.13 Framework of study and chapter wise presentation 46
iii
2.11.2 Digital Communication and e-governance 93
2.11.3 Digital Civics 94
2.11.4 Government Digital Strategy in UK 96
Government Digital Strategy in Republic of
2.11.5 Brazil 100
Government Practices of Digital
2.12.6 Communication in India 101
2.12 Research Gap of the study 102
2.13 Conclusion 104
114-
CHAPTER NO.4. RESEARCH METHODOLOGY 123
4.1 Introduction of Research Methodology 115
4,2 Research Methodology Used: Descriptive 116
4.3 Research Design 118
4.3.1 Descriptive Research Design 118
4.3.2 Population 119
4.4 Sample Design 119
4.4.1 Sample Unit 119
iv
4.4.2 Sample size determination 119
4.4.3 Sampling Technique 120
4.5 Data Collection 121
4.5.1 Primary data 121
4.5.2 Secondary data 121
4.6 Research Techniques used for Study and Analysis 122
v
5.5.5 Frequencies- Most frequent online purchases 148
Frequencies for Subscale- Attitude towards
5.5.6 Digital Marketing 150
Frequencies for Subscale- Influence of Digital
5.5.7
Marketing Channels 155
vi
CHAPTER NO. 6. FINDINGS AND
178-
OBSERVATIONS ACCORDING TO DATA
ANALYSIS 183
6.1 Observations 179
6.2 Major Findings 181
6.3 General Findings 182
184-
CHAPTER 7. SUGGESATIONS AND
RECOMENDATIONS 188
7.1 Suggestions 185
7.2 Recommendations 188
APPENDIX-I 192
REFRENCES 192
APPENDIX-II 199
BIBLIOGRAPHY 200
APPENDIX-III 207
QUESTIONNAIRE 207
vii
LIST OF TABLES
Table Page
No CH. 5. Data Analysis and Interpretations No
5.6 Frequencies- What are the reasons for using Internet? 138
i
Digital Advertisements are often relevant to me
5.22 154
5.29 How much satisfied are you with the products/ services you
bought through E-commerce 161
5.34
Descriptive Statistics- Satisfaction with e-commerce in general 170
ANOVA Demography and reasons for shopping through e-
5.35
commerce
171
ANOVA- Attitude towards Digital Marketing* digital
5.36
marketing Channels 172
Correlations- Influence of digital marketing channels*
5.37
frequency of e-buying 174
Correlations- Clicking/ Following digital advertisement*
5.38
frequency of e-buying 175
ii
LIST OF FIGURES
Figure Page
No CH. 1. Introduction of Study No
1.1 Direct Marketing 9
1.2 Social Media Process 14
1.3 Transmission in Analog to Digital media communication 15
1.4 Digital Technology 16
1.5 Communication media progress 17
1.6 World Internet Users by Regions 20
1.7 E-mail Marketing 23
1.8 Elements of Search Engine 24
1.9 Social Media 27
1.10 Digital India Initiatives 32
1.11 e-Commerce shopping process 35
iii
2.15 Total Media Advertisement spending 82
2.16 Most Active Social Media Platforms 84
2.17 Digital Civics 95
2.18 Digital Governance of Countries 96
2.19 Digi Locker, Digital India’s Initiative 102
CH. 4. Research Methodology
4.1 Steps in Descriptive Research Method 116
LIST OF CHARTS
Page
Chart CH. 5. Data Analysis and Interpretations No
5.0 Histogram- Graphs 129
How often do you access internet to research products,
5.1
information and prices? 137
5.2 What are the reasons for using Internet? 138
5.3 How often do you buy products online? 139
5.4 Hate going to shops 140
5.5 Availability of extensive information 141
5.6 frequencies- Product reviews 142
5.7 Certain products are available only online 143
5.8 Convenience / Service 144
5.9 Enables price comparison 145
5.10 Saves time 146
5.11 Sales / Offers 147
5.12 Most frequent online purchases 148
5.13 How often have you clicked digital ads on day to day basis? 149
5.14 Digital ads make me purchase the product 150
iv
Digital ad remind me of buying certain things when I am at
5.15 work 151
5.16 Digital ads are more appealing 152
5.17 Digital ads often offer comprehensive information 153
5.18 Digital Advertisements are often relevant to me 154
5.19 Influence of Search Engine 155
5.20 Influence of Mobile Advertisement 156
5.21 Influence of E-mail advertisement/ Promotion 157
5.22 Influence of Social Media 158
5.23 Influence of Direct e-commerce website/ Application 159
5.24 Influence of Digital Display 160
How much satisfied are you with the products/ services you
5.25
bought through E-commerce 161
5.26 Age of respondents 163
5.27 Gender of respondents 164
5.28 Education of respondents 165
5.29 Occupation of respondents 166
5.30 Income level of respondents 167
v
ABBREVIATIONS
vi
CoD: Cash-on-Delivery
vii
TRAI: Telecom Regulatory Authority of India
viii
ABSTRACT
This chapter have insights on background and history of digital marketing, purpose
of the study, definitions of related terms, platforms of digital marketing, history and
overview of e-commerce and study of digital marketing in e-commerce business.
Chapter also emphasises on problem statements, Scope, significance and limitations
of the research study in present scenario. The framework of study and chapter wise
presentation is given in this chapter.
2.Literature Review
Researcher in this chapter along with research guide developed a framework for
research in Digital marketing, the process of digital marketing, digital technology,
ways of digital marketing communication, platforms of digital marketing and the
most important is the significant impact of digital marketing on e-commerce
business.
This chapter covered the literature review on the areas of digital world overview,
rise in digital marketing, Traditional marketing and digital marketing, social media
impact, shift in marketing spending of organisations, increasing use of messenger
apps, influence of marketing channels, e-commerce penetration in world and digital
marketing in e-governance.
i
Problem finding andResearch Gap of the study:
Objectives:
ii
advertisements and satisfaction with the product/ service bought online are
significantly related.
4. Research Methodology
4.1.2 Population- Pune Region census (Infinity).Pune Region includes Pune city,
PimpriChinchwad and Suburban’s.
4.2 Sample design:
4.2.1 Sample unit- Individual consumer who has been engaged in e-commerce
(Who has seen digital advertisements, and/or bought something using any e-
commerce platforms).
4.2.2 Sampling size determination- Using formula developed by Cochran
(1977)75(When population size is large this formula is appropriate)
iii
Where:
Now at 95% confidence and at least ±5% precision z=1.96 (from z table), we get
For better result and more accuracy 437 is a sample size taken for research of the
study. Hence sample size of study is 437.
Primary data collected from all the areas of Pune city by using Combine sampling
technique. As allotment of quota according to population percentage Area wise
quota allotted according to the density of population of area so that representation
from all areas is assured.Respondents approached by using simple random
sampling.
iv
4.4 Data Collection:
Primary data and secondary data is must for analysis, findings and conclusion of
research study.
Places where data collected are Malls, Banks, Market, Private co. Offices, Railway
station, Travel points, IT companies, Colleges, government offices and other
crowded places.
v
For Hypothesis Testing: One-WayANOVA and Pearson Correlation tests are
used.
470 responses were coded in SPSS for analysis purpose. Out of 470 responses 30
responses found to have missing values. The mode/ median value (whichever is
appropriate) was replaced with missing value. However 12 responses were having
more than 10 per cent missing values. So it was thought to exclude those responses
from analysis. Among 800 respondents 437 responses were complete information.
Finally 437 data coded in SPSS for analysis purpose.
Since the Cronbach’s alpha value is higher than .7; the questionnaire is considered
reliable. It indicates that the scale measure exactly the same construct to measure.
All statistical tests to be conducted for analysis purpose are parametric. Parametric
test assumes that the data is normally distributed. To check the normality of the data
before proceeding for parametric tests, Shapiro-Walk, Skewness and Kurtosis test
and Histogram for normality of parametric variables was analysed.
vi
and kurtosis values for all the variables are less than 1. This signifies that the data is
normally distributed.
Histograms with normality curve also show the data is normally distributed.
Data analysis is done and interpretations are drawn in context of digital marketing
and its impact on e-commerce business. For analysis of every question in the
questionnaire frequency distribution table, descriptive statistics and statistical
analysis is calculated and demographic characters also analysed.Moreover
subsequently tables, graphs, pie charts and curves also drawn to understand data.
Hypotheses Testing
vii
To test second hypothesis ‘Pearson correlation’ is used and (Correlation is
significant at the 0.01 level) all values of Pearson Correlationrange from .223 to
.369. These values indicate low positive correlation; however the correlation is
statistically significant (p<.05) and not by just chance.In other words “Digital
Marketing Channels significantly influence frequency of e-buying”.
To test third hypothesis ‘Pearson correlation’ is used and the result shows that the
correlation is significant since the p value is less than .05. (p<.05). This indicates
that the null hypothesis cannot be accepted and we reject null hypothesis. In other
words “clicking/ following digital advertisements are significantly correlated with
frequency of e-buying.
To test fourth hypothesis ‘One way ANOVA’ test is used to check if the means of
these two variables differ significantly. Significant value of F test shows (p<.05)
that “Frequency of using internet and e-buying frequency are significantly related”.
Findings:
1) Researcher found that almost 53% consumers are satisfied with online buying.
The attitude of e-commerce consumer changes their satisfaction level with the
product/ service bought online also changes. It can be interpreted that the
satisfaction is somehow is also related with the attitude toward digital marketing.
2) Researcher found that 60% e-buyers get influenced to buy online. It found
significant positive effect of digital marketing channels on frequency of e-buying.
4) Researcher found that digital advertisements are more appealing and digital
advertisements often offer comprehensive information have been found to receive
highest mean values.
viii
5) Researcher found that every time new marketing changes are happening but this
time it’s different, this time it’s not only rules have been changed but customers
themselves discovered the new framework of marketing.
Suggestions
5) Researcher suggests most important factor that people are buying online it
doesn’t mean they avoidvisiting shops. Offline reputation must be maintained.
ix
avoid completely traditional communication.Research study interpreted that use of
e-commerce is most frequent for buying services than products.
The 60% of respondents feel that they get influenced by social media channels.
Artificial intelligence by using technology to target and micro target interest groups
are used.
The responses collected are intentions of consumers and are not actual behaviour.
Intentions may or may not lead to behaviour. Therefore findings may not be
generalised.Study is limited to e-buyers in Pune region as it may vary in another
city or rural area.Experimental research design would give better insights into this
context.
E-commerce companies and Digital marketing agencies were not ready to share
their data as its most confidential part of their business.The future studies should
focus on particular e-commerce marketers. Research study found that Mobile
advertising and email have no significant relation with frequency of e-buying it has
a scope for further study to get more insight on it.
x
CHAPTER NO. 1.
INTRODUCTION OF THE
STUDIES
1.1 Introduction of chapter
presentation
1
CHAPTER NO: 1
21st century drastically changed the way of life, work and communication. We all
are experiencing the digital revolution (digital kranti) every day. Now a days
researcher can dare to say that “Literacy is not limited to only reading and writing
but without knowledge of computing one cannot be considered as literate in 21st
century”.
Now smartphones become smarter than men are. We are not able to remember
phone numbers of our dearest ones. We hardly write letters on post card or paper to
our relatives, friends or officials. We are writing message or letters on email, phone
and other technological gazettes.
Bill Gates (2013)1 rightly said that, “The internet is becoming the town square for
global village of tomorrow”.
2
This statement of Microsoft‟s founder Bill gates is realising in today‟s corporate
world as internet is playing very important and huge role in businesses. In an
overnight, business can reach out to the public in large beyond the geographical
boundaries with one click of digital marketing.
The research on the area of digital marketing is something interesting for researcher
as researcher studying and implementing marketing practices. Researcher have
experienced that the organisation, government and individuals are using advance
technology and it helps everyone. This technical upgradation has many benefits to
organisations as well as individuals. This technological upgradation particularly in
communication system attracted researcher to do detailed study and research in
marketing point of view.
New technology and new platform of communication even changed the way and
strategies of internal communication in organizations and communication with
customers. Now it is more effective and easy to connect with customers and vice-
versa easy for customers to know everything about desired product and services.
Every business/entrepreneur is using this new tools and platform of communication.
To use best tools and best platform to reach customer is also a challenge.
To overcome this challenge and get benefit of cut through completion in techno-
savvy world everyone must be aware of the term popularly known as „Digital
Marketing‟.
Digital marketing involves various factors and the study of this factor has become
essential to be updated as a marketing professional, as an entrepreneur, as a mentor
and as a student as well. researcher want to do research on relatively new area of
marketing, want to know about present practices in digital marketing, comparison
with traditional marketing, advantages and disadvantages of digital marketing,
3
scope of digital marketing and future of digital marketing and want to find
benchmark and most effective solution in this area of marketing.
As this tool became unavoidable in professional life, hence researcher has to find
out most suitable and the perfect digital practice for that area of business or product.
This study should be a road map to organisations to adopt right marketing strategy,
communication, transaction process, media and technology.
Also it must be a guide to individual users as well to use this medium not for only
entertainment but to save time, money and energy by using best digital media in
most suitable direction. Will search and find out best possible solutions on „Digital
Trust‟.
“Right use of Technology at right time and right direction will give immense
result”
Everyone is use too with internet, computer/laptop, smart phones and other
technology gazettes for communication. I was fond about communication and
always want to know about new ways of effective communication. Being a
passionate of technology and communication became addict of communication
platform like, e-mail, google search, google plus, Facebook, LinkedIn, YouTube,
Instagram. The use of these platforms is depending on person-to-person
organization to organisation.
4
Researcher was one of them to worried little bit earlier about the use of these
platforms and benefit from the use of these medium of communication. However,
no doubt we all are realised that this new way of communication is attracted our
youngsters throughout world. In addition, every business persons worried about
how this “generation „Y‟” would affect the business. The burst of dot.com validate
and changed some theories that the wave of informal business professionals
adopting new habits in themselves.
Social media tools like Facebook, LinkedIn & Twitter, also influence me and many
professionals like me. These communication Media reached to mainstream and
forcing many business to adopt new way of communications. The informality of
these social media platforms spread to business communication platforms hence
there is a need of more study and research for effective use of this media for
organizations and individuals as well. I have decided to study and do research
which should be useful for organizations, society, government and end-users. I have
selected topic accordingly to study the impact of digital marketing on e-commerce
business.
Marketing is gaining more importance in business world in coming days and same
time; trends in marketing are changing every day. Implementation of marketing
strategies and practices may differ based on place, product and resources available
for marketing communication throughout the world, but Marketing concepts are
common everywhere. Marketers are using best of the best practices to reach to
customers and always keep on trying new market communication systems and
practices. Use of technology in marketing communication is playing important role
in changing cut throw competition. Marketers are learning new chapters every day
to keep in touch with customers not even monthly, weekly, daily but continuously.
Generally people use Internet and World Wide Web are interchanging words but
actually these are two different terms. Laudon (2008)2 explained in his book that
the internet is a worldwide network of computers and world wide web is internets
popular service providing access to web pages throughout the world.
5
Vargo & Lush (2004)3 stated in detail, The dominant logic of marketing is the
shifting from the exchange of goods towards service, interactivity, connectivity and
ongoing relationship Technological innovation, new channels of communication,
and changing media environment facilitates the shift towards use of technology and
digital media. How corporate houses are interacting with customers is gaining
importance. In addition, there is call for firms to consider cost difference in
traditional communication media and electronics media. Marketers now want to be
in touch with their customers and prospective customer‟s frequent basis and want to
increase personalization and interactivity with low cost. The main aim of marketers
is being frequent in touch with customers helps to build customer loyalty.
Marketing is the art of creating demand and satisfy their needs and process of
pursuing existing as well as new customer. It has become crucial for every business
to gain competitive advantages.
6
Before going to study Digital Marketing and e-commerce, we should know about
internet. The internet is a World Wide interconnection of individual network
operated by government, industry, academia and individual personal users. Initially
internet service used to interconnect laboratories engaged mainly in government
research. The history of internet started in 1945 as Vannevar Bush written article in
Atlantic Monthly and follows links between Microfich. The first international
conference on WWW CERN held in Geneva in May 1994.
Bush (1945)4 “A possible future world in which man-made machine will start
think”. Bush wrote that the future of digital communication as all individual stores
all books, records and communications will be mechanised with exceeding speed
and flexibility and it would be supplement to the human memory. In today we are
realising the things which Bush stated 70 years back. The speed of technology is
better than human being. Although it has been created by mankind but the memory
is also faster than man and its available anywhere any time.
Within few years of time internet consolidated itself as a very powerful platform
that has changed the way to do business globally and has changed the way of
Communication. The Internet has become a universe communication system and
universal source of collecting information for multiple uses of individuals and
organisations at work.
Since 1994, it has extended to serve crores of people in all parts of world.
Internet has shown rapid change since its inception. Two main things have marked
its evolution recently, 1) Social web and 2) Mobile Technology. These two
innovations literally changed the way people using technology and internet.
According to Philip Kotler (2010)5, marketing is “the science and art of exploring,
creating, and delivering value to satisfy the needs of a target market at a
profit. Marketing identifies unfulfilled needs and desires. It defines measures and
quantifies the size of the identified market and the profit potential. It pinpoints
which segments the company is capable of serving best and it designs and promotes
the appropriate products and services.”
In addition, as per the Joson Fall, “Marketing is helping people buy your product or
service” that is simple definition to understand marketing.
The aim of every business to sell their product and the modern way of marketing is
to help them to fulfil customer need by helping them. That is why apart from
product or service other offerings also matters in modern marketing techniques such
as guidance, delivery, after sale service assurance, warranty.
8
Essentially marketing is the process of identifying need, creating demand, desire to
buy and fulfilling wish of consumers. Marketing is a wide term now days and
related to audience, media platform and business in today is evolving marketplace.
Tara Schofield (2018)6 says “It's a method of contacting customers and potential
customers personally, rather than having an indirect medium between the company
and the consume”,
Outbound Television
Telemarketing Radio Display-banner
Audio Message Newspaper Search(SEM)
SMS ads. Magazines
Sociall Media
Push notifications via Cinema
post
mobile apps outdoor
9
In these all three direct marketing forms marketer must have contact details of
recipient of the message.
In discussions with public service leaders the term „digital‟ is often a source of
some confusion. This often leads to a discussion focused on technology products
and/or lack of knowledge thereof, whereas in reality „digital‟ should be considered
as a broader term for corporate values and practices which capitalize on the
opportunities presented by the Internet. While technology is typically the enabler
social media, mobile, the Cloud, analytics and big data, how IT is procured „digital‟
is not just about technology. Successful digital organizations tend to develop
operating models clustered around speed, adaptability and sharing. These contrast
strongly with the usual ways of doing things and are considered „disruptive‟.
The term ‘digital’ is often a source of some confusion. The „digital‟ is considered
as a broader term for corporate values and practices made opportunities available by
internet.
“Digital means applying the culture, practices, processes and technologies of the
internet era to respond to people‟s raised expectations.”
10
“Digital marketing is marketing in 2014 and we are all digital marketers. Every
tactic in marketing today has an element of digital, of instrumentation.”
Tami Cannizza, Vice President of Marketing at IBM.
The concept of „Digital Marketing‟ have been used operationally, while the
theoretical understanding and different capsule models of how, why and where to
use different digital channels are continuous in progressive stage. Considering the
growing use of Information Communication Technology (ICT) in marketing there
are few definitions of digital marketing. “Digital Marketing uses the technology and
internet to extend and improve traditional marketing functions” says Urban (2004,
2).
This is very simple and clear definition concerning all of traditional four P‟s of
marketing, customer acquisition and retention as well. We also use the terms as of
„Interactive Marketing‟, „One to One Marketing‟, „Online Marketing‟ and „e-
marketing‟ are close to digital marketing but not precisely defined. Today‟s very
popular term „Social Media Marketing‟ (SMM) is a medium of digital marketing.
Coviello, Milley and Marcolin (2001)8 defined e-marketing as “using internet and
other interactive technologies to create and mediate dialogue between firm and
identified customers.” They also defined that e-marketing is a sub part of e-
commerce. As per their opinion, e-marketing is more focused on managing
continuous technology oriented relationship with customers by creating dialogue
and interactive activity.
11
communication initiated by either customer side or company side. Communication
can be a general message to a personal message, group message or to a large
audience message.
Any Activity that related to the buying and selling of goods and services by using
electronic equipment and internet is e-commerce.
Laudon (2003)9 explains as the use of the internet and web to complete business.
More precisely it is digitally enabled commercial transaction in between
organisation and individuals. Exchange of value in digital form is important to
understand e-commerce better.
12
2) Direct e-commerce, exchange of goods online like bill payment, online
recharge.
Social media was become popular when it has made relevance to audience day to
day life. The online presence of audience itself is an indication to the growth of
social media.
Social Media is relatively new term and various authors, experts and media experts
write their own definition and continuously debating on it and landing to the most
universal definition of social media.
The definition indicates that here people can freely make friends and can share their
thoughts to friends as well as other community members.
Comm (2009)11 says that “social media is content that has been created by its
audience”
This is a simple and most accurate definition of social media written by Comm. It
indicates the most important and unique feature of social media is whatever written
on these platforms are written by audience. Social media platforms are only
facilitators to public.
Zerrella (2010)13 also written a simple and precise definition that the “social media
consist of online technologies that facilitate the creation and distribution of
content.”
13
Publish
Post Content
Content
Engage &
Research
Refer
Audience Build
Request Reputation
Improvement Monitor
s Metrics
All these definition clearly indicates that the social media is based on self-content
creation. Self-creation of content is the main feature of social media sites and
application, and they are service provider to protect through technology support.
Social Media is the most popular and valued media of communication for social
groups as well as corporate communications now a days.
One of the most influential technical break-through that made tremendous impact in
to all the functions of marketing management is the ONLINE MARKETING or
INTERNET MARKETING.
For any state of the art technology, the main objective is to produce better than
existing technology. Earlier the Analog signal is a continuous signal with physical
measurements. The transmission from analog to digital is a part of transmission in
communication.
14
Fig: 1.3 Transmission in Analog to Digital media communication (Source:
Techwala.com).
Over 100 years ago, Samuel F. B. sent the first telegraph at the parallel time
Alexander Graham Bell made the first phone call. Radio is also around us over
since 100 years. Since 80 years back first TV broadcast made. In 21st century
internet entered and taken over the world very fast. It makes information accessible,
fast and very easy in urban areas as well as remote world. In today‟s world
computers, cell phones and tablets are the primary communication devices.
15
(Fig: 1.4 Digital Technology, Image source: violetaipa/iStock/Getty Images)
Mobile was introduced in India in 1995 and the first official communication
between Union Communication minister Sukhram and Chief Minister of West
Bengal Jyoti Basu. No one was foreseen the revolution in communication as the call
rates was Rs.16 per minute and even incoming calls being charged. Mobile phone
took five years‟ time to spread in India. That time people was For example the STD
calls to US or any other foreign countries was 20-25 times expensive till the year
2000 as compared to today. The cost structure was Calling-Party-Pays (CPP) as
well as Receiving-Party-Pays (RPP). Incoming calls and outgoing calls were having
cost and people were speaking in short on mobile because of cost factor involved.
Even there was variations in call type and rates as well like; Mobile to mobile,
Mobile to other network mobile, mobile to fixed lines, fixed lines to mobile apart
from that Local, STD, Roaming and ISD calls were different rates. The mobile was
16
not a „cup of every ones Tea‟ till 2003. But today the call charges are affordable to
everyone and the penetration of mobile indicates that most of the people afford it.
Even data charges and video calling is also affordable to everyone. The next version
of communication is Internet now and it has occupied world like anything and is
made life easy no doubt. This is a journey of communication system throughout the
world.
The first public Internet access service was introduced in India as an Independence
gift to country on 15 August 1995. VSNL started this service in four metro cities in
India initially and now we are experiencing the presence of Internet everywhere.
WWW Internet
(1990)
ARPANET
Internet
(1983)
Television
(1927)
Radio
(1896)
Telephone
(1876)
Telegraph
(1837)
17
The journey of digital communication start with telegraph and telephone to the
radio and television and now spreading through internet. The fig 1.4 defines the
journey of communication media in graphical form. Letter writing was the ancient
form of medium of communication in history. Apart from that the technology based
communication start with Telegraph and the journey is continued today with most
preferred medium of communication as Internet.
Marshall McLuhan (1967)15 philosopher in mass media explained his opinion that
the “medium is the message” and invented todays popular world “global village”
and is a predictor of “world wide web”. It has huge impact on news writing.
Telegraph and Telephone are usually invented at same time and both had an
important place in mass media. The telegraph connected to world‟s newspapers in
late 19th century through “wire services” in US, Britain, France and in Germany.
The telephone system carried radio signals from New York to the nation.
Radio:
In 1906, Reginald Fessenden created first radio transmitter and sent music and
speech by airwaves. Radio reached its golden age in 1920s, and companies
advertised their products to consumers around the world. In 1930s radio expanded
new features and started news, politics and sporting events broadcasting every day
throughout the world.
18
Television:
The invention of internet allowed computer networking around the globe. Internet is
given access to incredible wealth of information to everyone. Now more than half
of the population is accessing internet and its growing fast every day.
Kannan (2017)16 in his studies stated that traditional means of communication such
as print, radio and television and the digital means to reach the customer and
promote products and services through e-mail, display ad and social media
promotion. He identified in his studies that effectiveness of digital media is
incremental over traditional media. Personalised and location based promotions are
increased in digital media it have significant impact.
After rigorous review of literature researcher realised that rise of new channels for
promotion of product and services to the consumers. With online channels, sub
channels like social media, search engines, emails and chatting apps support
consumers and also to increase consumer value.
E-mail, google search, social networks, newsgroups, apps and video transmission
have connected world like never before. Internet proved itself is very useful to
society, business and government. High speed connectivity provides large data
access within seconds.
Internet users in world region wise given in Fig: 1.5 shows that Asia is leading in
internet penetration. Almost half of the population of internet world is from Asia
continent according to Internet World Statistic based on December 2017 survey
report by Miniwatts Marketing Group. The main reason is, Asia is the most
populated continent on the earth and countries like China, India and
19
World Internet Users by Region
0.70%
3.90%
8.30%
10.50% Asia
Europe
48.70% Africa
Lat America
North America
16.90% Middle East
Austrralia
17%
(Spotlight, 2011) The first clickable banner ad ran in 1993, and Hotwired became
the first company to buy banner ads in large quantities in 1994 from that moment,
marketing made a shift into the digital age.
Each year, new technology added into the digital marketing place. Google founded
in 1998. Blogger.com came into existence in 1999. Blackberry launched their email
program (Spotlight, 2011). Then the social networking sites such as LinkedIn,
MySpace, and Facebook began popping up, allowing companies new ways to
expand their network and new forms of communication and means of gathering
information about potential clients to come into existence. The way of
communication changed tremendously when „WhatsApp‟ came in to picture.
Former yahoo employees Brian Acton and Jan Koum founded WhatsApp in 2009.
WhatsApp messenger is a free messaging and voiceover service provider.
WhatsApp allows sending instant text message, voice calls, video calls, images,
20
documents and other media. It is used through mobile device and accessible through
desktop computers. Because of his user-friendly features, it has become most
popular in social media users.
Statista (2015)81 Social media sites grown tremendously all over world and
becoming popular and growing in numbers rapidly. As per the statistics of Statista
200 crore users used social media sites and apps in 2015 and the numbers supposed
to cross in 2018 will be 260 crore users.
(Clark Davre 2003)17 the term 'digital marketing' was first used in the 1990s. In the
2000s and the 2010s, digital marketing became more sophisticated as an effective
way to create a relationship with the consumer that has depth and relevance
In 2012 and 2013 statistics, shown that digital marketing remained a growing field
21
Chris Fill (1995)18 was written very well that “the primary role of marketing
communications is to engage audience.
Direct communication one to one with consumers is always challenging for every
organisation. The growth and retention of customer is an ultimate success of better
communication with people in today‟s corporate world. Technology makes it
possible to communicate with maximum consumers within less time and this is the
great opportunity for corporate world to increase marketing communication with
consumers. Using digital marketing strategy marketers can engage audience.
It has been argued that digital marketing is just evolution of direct marketing as it
infold digital technology (Berne 2015)82, it is academically correct as all digital
marketing ways are direct. It is many more than that as it collects data, personal
details, segment audience, send tailor made messages according to public interest,
measures daily output and return on marketing investment. The most important is
people engagement.
Chaffey (2012)19 The application of the internet and related digital technologies in
combination with conventional communication to accomplish marketing objectives
Digital marketing is the use of the channels in order to reach the desired target
market via some of the following channels social media, websites, multimedia
advertising, online search engine advertisement, E-marketing, interactive marketing
22
(polls, game adds, mobile marketing) Digital marketing has been considered a new
form of marketing and provided new opportunities for companies to do businesses.
Marketing activities conducted via digital channels enable advertisers to directly
communicate with potential customers in a rapid velocity and regardless the
geographical location. Digital marketing has been recently referred as one of the
best means to cut through the mess and interact directly with the consumer. Hence,
with the trend toward direct, one‐to‐one marketing, additional attention is being
paid to the use of the digital channels as a means of effectively advertising to
consumers. Thus, research on digital channel advertising would impact greatly on
the way business is done.
1.7.1 E-mail:
Email enables to message containing with text, images, sound and video clips
transferred from one user to another user with the help of internet. At the inception
of internet it was the most used way of communication. It has a flexibility, speed
and affordability. It is the most popular form of business communication even
more popular than the phone, fax, and postal service.
23
research agencies. Another way is to take efforts and do promotions for customers
to opt them to give their email address. The next important step is to prepare most
attractive message so that it should not go to SPAM mails.Sean McPheat (2011)20.
Search
Engine
Advertis
ing firm
Customers
24
Another ways of search engine optimization are article marketing, blogging,
forums, affiliate marketing and social media sites.
Search engine solve the problem of finding useful information instantly. There are
hundreds of search engines in the world but top five major search engines used are
Google, Yahoo, MSN/windows live chat, AOL search and Ask.com. The google
search engine is continuously leading in the web world.
25
This is a view board advertise to give audio visual effects to audience and it can be
put on public places. Self-run video content clips are integration of signage, touch
screen, sensor and RFID technology to allow two way interactions.
This is a sub segment of electronic signage and uses technology as LCD, LED,
Projection and electronic papers. It can display content as digital images, video,
web pages, share market, restaurants, hospitals, Malls, cinema and corporate
buildings.
LED Display:
Big LED display gives creative and grand display effect it is a best promotional
tool. LED display has bright and attractive technology effect to play various media
forms.
The main feature of Social Media is user generated content and dialogues. Social
media websites and applications provides place to write and react and it can be
spread very fast in public. Content is the most important ingredient in social media.
Smart content can give you a more mileage on social media.
“We have technology, finally that for the first time in human history allows people
to really maintain rich connections with much larger numbers of people.” – Pierre
Omidyar, eBay.
26
“Facebook is silly.” – Damians Dad
We should say thanks to the increased interactive nature of internet and technology
that they have changed the way of communication media. People are joining
conversations to more extensive groups and the conversation don‟t have transcend,
geographical and cultural boundaries. This is the excellent opportunities to the
marketers to engage with them in two way conversation. The marketer‟s job is to
listen to customers in spite to always telling them.
Zeke Camusio (2011)21 social media is the umbrella of software services which
provide platform to people to come together online and exchange their views. It can
be a text, audio, video, images and other multimedia content. People can generate
their own content, share content, recommend, like and comment their opinion or
experience about particular thing or product.
The online articles, social forums, blogs, wikis, social networking sites, online
discussions, video sharing sites, peer reviews and other online multimedia made
available the immense potential to create meaningful and productive relationship
with customers which were never possible before.
Social media has changed the way we interact and opportunity to communicate and
share events and relationships virtually. Marketers have another way to interact
with customers, clients and prospective customers.
There are lot of social media sites and messenger applications. The leading sites and
applications area;
27
Facebook
Twitter
LinkedIn
WhatsApp
Instagram
Google+
FB Messenger
Skype
Pintrest
Qzone
Weibo
WeChat
Telegram
Myspace
Flicker
MySpace
YouTube
Dailymotion
Metacafe
We may experience few of them but these are the leading social networking sites,
application and video sites. There was lot of sites came in to market and gone out
but these are the sites performing and survived in market.
28
survey, approximately 63% „people do product‟ search usually to end up with
making offline purchase in a physical store.
There is a debate on meaning and working of e-commerce and e-business. Some of
them are describing e-commerce as electronical based organisational activities to
support market exchange system said Rayport and Jaworski (2003). Other says e-
business includes total internal as well as external electronic based activities
including e-commerce (Kalakota and Robinson 2003)22.
Researcher understood that there is a working distance in between e-commerce and
e-business. E-commerce is not anything digital in other words it is not concern to all
digital activities in organisation. For example online inventory control system
mechanism is a part of e-business as this activity does not generate revenue directly.
However e-business infrastructure supports e-commerce exchange said Laudon
(2008)2.
Khan and Mahapatra (2009)23 earmarked that technology will play vital role in
improving the quality of service provided by business houses. The technology bring
the information revolution in the life of society is „Internet‟ Technology. This will
be the third wave of revolution after agriculture and industrial revolution. The
effects of e-commerce already appear in all area of business and it will reduce cost
of business.
Jain, Prabhu etc. (April 2016)24 expelled that “e-commerce transferred the way of
business in India as well as throughout the World. The e-commerce business
provide scope to innovative, sustainable, consist and seamless shopping
experience.” In last few years we are experiencing huge growth in e-commerce
business especially in B2C segment. This is mainly because of internet and mobile
penetration in urban and rural area. The researcher assumes that in next 5 years
mobile will drive sale viz e-commerce platforms.
The Indian industry is also continuing growth and adopting new technology.
Global e-commerce business modules analysed after literature review is; B2B, B2C,
C2C, aggregators and Hybrid.
29
1) B2B e-commerce:
Business to Business e-commerce itself indicates the transaction between
two corporate organizations by using electronic communication.
The leading companies for examples are Mjunction services limited (Metal,
coal and buyjunction), CloudBuy.com, Industrybuy.com,
Amazonbusiness.com and Power2sme.
2) B2C e-commerce:
In this business to customers model, products and services available for e-
sales,
The leading companies are Snapdeal.com, Amazon.com, EBay and
Flipkart.com.
3) B2C e-commerce Inventory:
In this model business is having e-commerce infrastructure enabled with
inventory based service to customers.
The companies are BigBasket.com, FirstCrt.com and Zovi.com
4) B2C e-commerce Aggregators:
In this model marketers provide technology solution to customers to meet
their need.
The leading companies in India are Uber.com and Olacabs.com
5) C2C e-commerce:
In this model technology platform made available for customers to sell and
buy.
The leading companies are Cloudcar.com, quicker.com and olx.com.
6) G2B and G2C e-commerce model:
In this model Government to Citizen Services are included by using internet
technology. These are the services of government to business organizations
dealing with government departments.
In this model leading organizations are the departments for paying tax,
registration of vehicles, citizen services receipts and GeM.
7) Hybrid or Omni channel Retailers:
Omni channels are integrated approach to commerce that provides online
and offline shopping facility.
30
The leading companies are Shoppers stop, Infiniti Retail limited Croma,
Raymend Limited.
These are models of e-commerce business with their examples to understand
e-commerce business in India and abroad.
Apart from this there are different verticals of e-commerce according to Deolite
Research (2016)25.
Travels: Cleartrip.com, Yatra,com. MakeMytrip.com, goibibo.com and irctc.gov.in
Real Estate: 99acres.com, Housing.com, Magicbricks.com and commonfloor.com.
Fashion: Myntra.com, Jabong.com, limeroad.com. Zovi.com and Yepme.com.
Education: Purple Squirrel Eduventures, Plancess.com, Edutech.com,
gurudigitech.com and baijus.com.
Health: Healthkart.com and Portea.com
Laundry: Laundrywala.com, Wassupondemand.com and DoorMint.in.
Entertainment: Netflix.com, Hooq.com and ErosNow.com.
Truck booking: TruckMandir.in, TruckSuvidha.com, Fortigo.com and
TheKarrier.com.
Food and grocery: Zomato.com, Foodpand.in, TinyOwl.com, Bigbasket.com and
Swiggy.com.
These are the leading companies in Indian e-commerce business survived
successful model of e-commerce business. The researcher also analysed that
maximum companies are from B2C type of e-commerce model. E-commerce
penetrated in all areas and online shopping is increasing share in Indian market. On
the other hand average spending of individual e-commerce consumers also
increasing at the same time.
And ultimate trend in market is increasing number of online shops on internet and
numbers of e-commerce consumers are also growing because of easy and affordable
connectivity through smartphones.
The government of India is also taking initiative to transform traditional offices in
to digital offices to provide services to citizens. The flagship initiatives of
government of India are Digital India, Make in India, Start-up India and Skill India
are creating the positive environment and support to e-commerce industries. The
Digital India initiative taken by government in various are is shown in Fig: 1.10.
31
Fig: 1.10 Digital India Initiatives (Source; Image from google.com)
32
As per the Deolite Research (2016)25 the major payment mode in e-commerce was
CoD as 60% people preferred this mode of payment and followed by Credit card,
debit card and Net banking 17%, 13% and 9% respectively. The use of EMI and
Wallet options was very less as 1% and 0.5% respectively.
The researcher observed that consumers most preferred way of mode of payment is
CoD. It shows that either people are not having adequate trust on e-commerce
marketers or they may be not sure about delivery of products or services on time.
The mode of payment and behavior in e-commerce consumers itself is having scope
for future study.
There for e-commerce business operate and compete in real time business. E-
commerce is technology mediated and plays an important role to develop
relationship between individuals and organizations. Even the purchase made at
physical shop and cashier process order through computer it is serious is moving
from physical-world „Market place‟ to the virtual world „Market space‟. It is about
the digitization of information between two parties. It can be communication
between two parties, individuals or organizations, in the form of flow of goods and
services or transmission of electronic orders.
E-commerce is simply about technology-enabled transaction and web browsers are
the best-known technology interfaces. Other interfaces incudes automated teller
machines (ATM) and electronic banking, phone banking and most recent internet
banking/transactions also falls in the general category of e-commerce. The scope of
e-commerce includes all electronically based intra and inters organisational
activities.
33
Elements of Commerce:
Actual elements of commerce and commercial transactions are slightly complicated
we have to understand it systematically.
1-If you want to sell anything to customers then you should have Product or
Service to offer. You may get it from producer; distributer or you may produce the
product yourself.
2-You must have Place to sell that product. Place can be an empirical like phone
number, website where customer can place message or order and purchase product
or service.
3-You must have to decide ways to get people come to your place and this process
is known as Marketing. If no one knows, where your places exist? Then you will
never sell. It may be shopping centre, mail order cat log, advertising or word of
mouth publicity.
4-You must have way to place Order. Order can be placed by mail or phone and
company will process it.
5-You also need to receive Money it may through cash, cheque, credit card on
online transfer to pay amount of product or service.
6-After receiving money company to deliver order of product or service called a
Fulfilment. At store customer can collect personally in mail/phone order it can be
packed and mailed or loaded on trucks and shipped.
7-In some cases you must have to take product returns. It may be due to damage,
warranty or customer unlike the product.
8-Many product needs Customer service and Technical support depends on
product or service.
These are the all-essential elements in e-commerce business like any other
traditional business.
34
Fig: 1.11 e-Commerce shopping process. (Free Image, Source: google.com)
35
Technical Agencies: Technical support required from technical agencies, group of
technicians and government to maintain technical standard and implementation.
Bankers: Banks and financial institutions hold the key for the success of e-
commerce business as financial transaction is most important factor depends on
support of bankers.
We live in an era where change is sweeping the world of small business. Online
business has created a completely new avenue for people looking to establish their
businesses. Many consumers would rather shop online than in-store. For e-
commerce business, the ability to connect with customers through the web in a way
that was just a pipe dream in the past.
Through Digital Marketing, using incredible tool is now business can establish a
link to customer directly, personal, and practical. In fact, customers now expect to
find a social experience and online customer support from websites and
applications. The stores that fail to offer an online web and application support can
have a risk of losing customers to someone who will fulfil their desires.
Digital marketing extends beyond internet marketing to include channels that do not
require the use of the internet. It includes mobile phones (both SMS and MMS),
social media marketing, display advertising, search engine marketing, and any other
form of digital media.
Most experts believe that 'digital' is not just yet another channel for marketing. It
requires a new approach to marketing and a new understanding of customer
behaviour. For example, it requires companies to analyse and quantify the value of
downloads of apps on mobile devices, tweets on Twitter, likes on Facebook and so
on.
37
Considering the present situation digital channels in Marketing is becoming
essential for strategies in all companies. For example, car manufacturer and real
estate companies use the internet, email, google search, social media to launch new
models and new residential projects respectively. They also interact and engaging
customers on their websites, email, pages and channels. As per my knowledge,
online advertising is increased in this sector compare to print media and electronic
media.
In 2014 well-known real estate player, „Kolte Patil Developers Limited‟ in pune
adopted digital marketing first time to launch their different projects of various
locations in Pune. After having better results compare to big budget newspaper and
TV ads they have made history in 2015 by selling more than 300 apartments within
shortest period of 10 days only.
Kolte Patil Developers Limited (BSE: 532924, NSE: KOLTEPATIL) with Amura
Marketing technologies made a strategic decision to use Digital marketing to kick
off the campaign for their first ever home buying festival NesTfest 2015. They took
customer engagement to the next level by presenting inventory availability, virtual
tours, floor plans and actual site photographs of all Pune project sites. It was the
remarkable event by selling most of the inventory during this fest online and made
new chapter in real estate marketing and sales. "We (Amura & Kolte Patil) have
created history in real estate where over 300 apartments were sold online in 10
days," said Vikram Kotnis, MD, Amura.
Vikram added, “With trusted brands it's easier for customers to make the decision
of even buying homes online. With developers uploading all relevant project related
information and site pictures to their websites, customers can have complete digital
sales experience-choosing inventory has become a much more transparent process.
Investors, NRIs and people wanting to buy real estate in a different city prefer going
online to book the apartment of their choice. Although rest of the buying process
happens offline, it‟s the convenience of booking a home from the comforts of their
38
current residences that entices customers to prefer ecommerce in real estate”, said
Vikram Kotnis
The campaign made huge successful by creating huge enquiries, data analysis and
the ecommerce algorithms were used to study customer behaviour and prepared
with strong follow-up and customer service team.
Linton (1986)66 explained the steps include “Brainstorming statement analysis and
synthesis, unstructured sorting of multidimensional scaling and mapping supports
more informed reconceptualization of problem and new ideas”
The first thing is that digital media is mainly used by techno savvy persons apart
from that there are many predictions and positive as well as negative effects. Every
day new technology, new platform, new players, new ways of communication
introduced in global market. Updated knowledge of digital world will help you to
survive in today‟s competitive world. A most popular business communication
platform focuses on marketing, sales, career advancement, internal communication
and vertical industry knowledge. Hence, study of digital marketing is must to use
professional use of digital marketing.
As maximum business, houses and professional are relatively new to the area of
new communication strategies, people are using new communication platforms but
it is more for entertainment and social networking.
39
The problem statements are:
Sometime people think that its wastage of time, money and efforts.
Entrepreneurs are forced to use this new media but not so clear and confident about
use and utilization.
Training and knowledge of Digital Marketing is must to use this new way of
communication in e-commerce business.
Use of right medium to communicate with right audience is a question mark for
maximum people as well as marketers.
Technical errors cause a problem and it could not be affordable as it costs very high
to any business.
Traditional Purchase habits of customers are a one of the barrier in this area.
To know the search engine working style it is must to get professional use.
40
Increasing incidence of online fraud throughout the world created Fear of fraud
among consumers and marketers.
Government policies, rules and regulations are not Cristal clear all over World.
The present practices are not capable to provide solutions to all above problems.
Different platforms are having different logic to communicate. In addition, major
problem is privacy of customers/audience is in danger.
For example; Alper,com (2016)66 The high profile case came in news in 2016 US
general elections Donald Trumph hired Cambridge Analytica for election campaign
and made use of allegedly imported data of around 8.7 crore Facebook users. The
company allowed political campaign to target voters according to precise messages
with accurate content.
Because of these issues, people do not prefer this new media, its being use more for
entertainment and less for professional use. Marketers are also finding problems to
target right audience. Training and awareness to marketers as well as users is also a
major problem to study. Marketers and customers/users are experiencing the „pain‟
every day. To find out the solution to this „pain‟ from the present situation leads me
to do research on this topic.
41
marketing campaigns and increase accuracy, and provides real time scenario of
marketing communication.
“All progress is born of inquiry. Doubt is often better than overconfidence, for it
leads to inquiry, and inquiry leads to invention” (Hudson Maxim)
IAMAI (2014)26 around 40% of the population of World has Internet connections in
2014. In 1995, it was less than 1%. The number of internet users has increased
tenfold from 1999 to 2013. Almost half the country will be connected through the
Internet by 2019 considering present growth rate of 14%.
The number of only mobile internet users in India reached 18.5 crores by June
2014, maintaining a growth of 20%, according to the „Mobile Internet in India
2014‟ report, released by Internet and Mobile Association of India (IAMAI) and
IMRB International. In December 2017 the mobile internet users are 45.6 crores in
India.
Digital Marketing:
42
consumers. Earlier key objective was to promote brands through various forms of
digital media but in present situation, it fulfils the complete selling process online.
The size of India's e-commerce market in 2013 was around 13000 crore, according
to a joint report of KPMG and Internet and Mobile Association of India (IAMAI)
and is growing at a fast pace with an estimated size 43.8%
The number of users making online transactions in India was increased from 11
million in 2011 to 38 million in 2015.
43
Urban India‟s changing lifestyle
Convenience of online shopping
Increased usage of online classified sites, with more consumer buying and
selling second-hand goods
Evolution of the online marketplace model with sites like Flipkart,
Snapdeal, Amazon and Infibeam.
Consumer mentality and shopping patterns are changing very fast. Online shopping
is going to become main stream in the coming five-six years and smart phones
would be the biggest online shopping driver in the coming years.
Tier-II and Tier-III cities are opening up very rapidly. By 2020, you will have e-
commerce penetrated everywhere, whether it is smaller cities or rural areas.
Considering internet and electronic revolution of „Digital India‟ will create wide
scope in e-commerce and digital marketing area.
44
1.12 Limitations of Study:
Every work has some limitations and this study is also not optional for the rule. The
area of study is related to technology and with technological upgradation the rules
and regulations of Digital Marketing are keep on changing. The researchers
observations reviewed at the time of beginning of study are not exactly same as it is
at the time of writing observations and findings. The researcher has taken care to
write upgraded and recent observations with earlier reviewed observations. Every
research has a future scope of study and this research also has vast scope for future
study and one thesis is not enough to cover all areas of research finding in this
study.
Digital marketing is comparatively new way of marketing and there is a need for
more studies on marketing implementation and strategies.
45
communication media smartphone accounts over 70% of global mobile handset
shipment (BuddeComm Intelligence Report)
The introduction chapter covered background and history of digital marketing and
e-commerce business and the definitions of all terms. The study of introduction of
research also includes the exact purpose of study, overview and limitations of study.
The regress literature review in the chapter literature review is covered with
reference to research papers, research thesis, books, journals, online journals,
research reports, government data and newspapers.
The scope of study, objective of study and hypothesis of study is defined in chapter
according to research gap and statement of problem.
The chapter data analysis and Interpretations covers the data cleaning, treatment for
missing values and skewness test to check the normality of data. After that
reliability check with Cronbach‟s Alpha to start analysis of each question has taken
place. The total analysis reports in tables and graph presented with better
interpretation.
46
Findings and observations based on study have been presented in the chapter
„Findings and observations of study‟.
The most important part of research study is written in the chapter conclusion. The
Researcher with throughout study, observations and findings has given his own
insight on the research study in a short and precise form.
The study also designed with abbreviation, table of content, figures, graphs,
Harvard style referencing and bibliography.
47
CHAPTER NO. 2
LITRETURE REVIEW
2.1 Introduction
Store Traffic
on e-Governance
2.13 Conclusion
1
CHAPTER NO: 2
LITERATURE REVIEW
2.1 Introduction:
Researcher along with research guide developed a framework for research in Digital
marketing, the process of digital marketing, digital technology, ways of digital
marketing communication, platforms of digital marketing and the most important is
the significant impact of digital marketing on e-commerce business. Evolution and
development in e-commerce, elements of e-commerce, e-commerce business and
future prospectus of e-commerce business is studied. Using the framework,
researcher organised developments and extent research around elements and
intercourse comprising the framework and review the research literature in broadly
defined area of Digital marketing and e-commerce business. Researcher outlined
the most evolving issues in and around the intercourse and related questions related
to future research. Finally integrated identified questions and defined research
agenda for future research in digital marketing and its impact on e-commerce
business to examine the issues from the prospective of consumers.
It is also more convenient for businesses to conduct surveys online with a purpose
to get relevant information from targeted groups and analyzing the results based on
their responses. Potential customers can look for reviews and recommendations to
make informed decisions about buying a product or using the service. On the other
2
hand, businesses can use the exercise to take action on relevant feedback from
customers in meeting their needs more accurately.
Day (1997) The literature on digital technology is relatively a new area and
academicals theories are not sufficient or we can say not more relevant on this
particular area While previous researchers has examined internet usage (Teo, Lim
& Lai 1999). Website designs from customer‟s point of view (Bell and Tang 1998).
Pricing paid promotion of search engine (Sen et. al 2008) and bidding (Bernerd and
Simone, 2011).
They also argued on the old 4Ps of marketing was out bound and are more
product oriented and not marketing oriented. As a result, focus shifted from
mass marketing to target marketing. It has also given a birth to digital technology in
marketing strategy.
Laudon (2008)27 stated that the early years of e-commerce was not so easy that was
a period of vision, experimentation and realization. In the year 2000-2001 stock
market crashed and the stock market value of telecom, e-commerce and Information
technology stocks declined by 90%. That was a bubble burst and lot of people was
quick to written that “e-commerce and internet growth would stagnate” but the time
prove that they were wrong and resulting in to the 25% growth rate over the years
in e-commerce business.
Jansen and Mullen (2008)28 says that online advertisement actually emerged in
1998 and very fast has become a one of the major business model of search engines.
Is now one of the fastest growing segments of online marketing or digital
marketing? Search engine has become most popular and necessary for people to
surf the web and it has make very simple to use and designed as a simple user
interface.
3
Before the introduction of internet or digital marketing there were many ways for
business houses to advertise their products such as TV, Radio, Newspapers,
Magazines, Tele Marketing‟s or pamphlets. The aim of companies was to get
product name, a slogan, a vision or even company name communicated to many
people as possible for the lowest cost.
After the dotcom collapse in 2001 the internet technology was determined as failure
because of failing website based business and wrong perception and expectation
about market and consumers. But both companies as well as consumers continue to
explore online options continuously and very soon successful business models
emerged. Search advertising and e-commerce was emerged as new possibilities.
Focus on increase in website traffic, targeting advertisement according to customer
behavior and maintaining website to attract visitors became relevant. Research on
consumer behavior and buying patterns online have been continued and became
interesting.
Now due to the technology available today and internet penetration across half of
the population of the world advertisers are able to make massive lead and created a
history in global campaign. It was possible to become global in just few minutes or
even few second. This milestone has lead more obvious as a new generation of
professionals take control.
It is a big challenge of Twenty-First-Century information competencies to handle
multisource of data. Now technology creating ample data every day but storing data
and sorting of data is also a challenge. We have to apply information for decision
making and decision making is nothing but a choice between alternatives. The
information/data applied to take strategic decision will help to take day-to-day
decisions.
4
Smith (2003)74 has defined five skills in his book to be a master in marketing
information;
1) The ability to instantly classify and reduce incoming information.
2) Getting aware of evidence or to identify source of error.
3) Intuitions behind data source or perception in that situation.
4) Psychological approach.
5) Bricolage; something created based on diverse range of things.
These skills must be used to analyse exact meaning and result of any data or
information before taking any decision. Technology helps to create source of
data and also the ways of data storage also available like server, hard disc, cloud
etc.
(Rappaport 2007) “are likely to continue as marketing and advertising are
increasingly peopled with individuals for whom the internet, eBay, Amazon,
Google and YouTube were always there and which played some role in forming
their worldwide, just as television, radio and print media did for prior
generations.”
(Oracle 2008) expedite that the usually unanswerable question is whether online
marketing or digital marketing is effective in short term and long term.
(Ringer 2011) in his research stated that the quest for reliable statistics means that
some marketers will shy away from implementing digital marketing strategies
5
that draw only short-term attention to strategies that allow for prospect
identification and collection of behavioural data. As per Ringers view marketers
was not that much confident to use digital marketing and today when I am
reviewing the study of digital marketing even though speed of adoption is high but
still few people are shy and in this research study insight on that issue and to
observe the change.
Baker (2009) stated that consumers learn about brands through social media.
Harridge and Quinton (2012) estimated that consumers generated more than 500
crore impressions about product and services through social media in 2011,
approximately one quarter of the number of impressions created by all forms of
online advertising.
Baltes and Loredana (2016)31 the business environment and marketing strategies is
going through big change because of digitization of world. The digitization takes
place in developed as well as developing countries and developing countries are
being benefited because of digitization. There is a good future opportunities to the
many business adopting digital marketing strategies. IT companies all over world
like Google, LinkedIn, Facebook, YouTube and Amazon set new trends.
6
Digital Marketing Basic Frame work:
Digital
Search of Promotion
product info Marketing
PR
Sales
Advertising
Fig 2.1 Basic frame work of digital marketing (Source; own creation)
The basics of digital marketing are same as other marking system. The way of
marketing is enabled with technology and internet. This makes the work easy, fast
and more accurate by experts of digital marketers. This is the most preferred
marketing strategy all over world because of its unique and innovative features to
attract digital world.
Kamal (2016)32 stated that “Digital marketing is often referred as Online Marketing,
Internet Marketing and Web Marketing.” It indicates that the digital marketing
occupies the space in urban as well as rural world. It enabled customers to reach to
marketers easily. This has become compulsory course of action for marketers and
they are watching each and every innovation in this area and trying to add
maximum possible strategies to increase business. Digital marketing uses every
7
element of modern technology practices. These are the commonly used channels of
Digital marketing used by marketers are:
These are the various channels popularly used by business organisations to increase
their business. Even political parties and social organisations are also using these
channels for mass communication and other tools to record feedbacks of audience.
European countries and America are using digital marketing to communicate their
agenda with their voters from last few years. In 2014 Loksabha Elections in India
first time Digital Marketing was effectively used by political parties. It has been
observed that this is a digital era of advertising and communication. The
development in digital marketing is the proof of changing anonymity to identity as
well from entertainment to information source.
The survey of Jasleen Kaur (April 2017)33 indicates that 34% companies are using
digital marketing strategies in India and 72% believe that traditional marketing is
not sufficient to increase revenue and ready to use digital marketing to increase
revenue.
As per the reports in 2017 more than 80% companies are using digital marketing
either as a marketing strategy or they are optimizing few channels to make their
presence online. It indicates the growth of digital marketing in India. Consumers are
giving preference to those who are always available to help them and the digital
communication technology gives that opportunity. Corporates want to be in touch
with customers through digital marketing.
According to Statista.com (2017)34 the data shows that half of the population of
world is online. Total population of the world in 2017 was 750 crore and internet
users reached to 358 crore. This pace of internet users growing mainly because of
easy access to computers, increased use of smartphones and the modernization of
countries around the world provided opportunities to internet users to frequent
8
connectivity and convenience to use. Growth in internet users mainly increased in
year 2016 and 2017 because of affordable smartphones and affordable data plans.
4000
3500
3000
2500
2000
1500
1000
500
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Fig: 2.2: Internet User‟s statistic from 2005 to 2017 (Data source; Statista.com)
Rashid (2011)36 in his research observed the facts on internet growth rate in world.
He says from last 10 years, the internet population is increasing 50% per month
and number of websites double every 53 days. A 60% large company and 30%
midsize companies are using Internet for marketing by the year 2000 Young
generation is online and shopping online commerce. The hotel and travel industry
face challenges and customers demand more on web for information and booking.
Internet allows opening e-commerce website and having their products available to
large base potential customers in a short time period.
9
This research is also agreed after various data and references, the internet defined
his utility for individual network, government, industry, academia instead of earlier
for only research laboratories in government. Within very few years, internet and
digital media consolidated as a very powerful platform that changed the way of
business and the way of communication. The two innovations of digital media
social web and mobile technology the way of people use technology.
According (Statista.com 2018)81 and various reports and online information and
agencies reports, it has been observed, “Internet has made distance shorter and the
world smaller”. Maximum numbers of internet users are from Asian continent.
China, India and United States are ahead of all other countries in internet user in
numbers throughout the world.
Our research also agrees that the internet continues as a most democratic mass
media with very low investment. With this, any business can start webpage and can
reach a very large market, directly, economically and fast, no matter the location
and size of business. The result of this easy connectivity and easy way of
communication for corporate, government and individuals the internet user
increased very (fig: 2.3) fast in developed and developing countries.
10
According to recent reports there are more than 400 crore (4 billion) people around
the world using the internet and in top 10 internet user countries India is leading
with China and US in numbers. According to recent reports India has 46.2 crore
active internet users and is a second largest internet user country all over world.
According to numbers apart from India and China other Asian countries are also
leading in numbers of internet users. In spite of less internet connectivity and
availability of technology compare to European countries Asia is leading in
numbers of internet population. The number of internet penetration shows that Asia
is the biggest e-commerce market in the world. This is an opportunity for e-
commerce market.
600
500
400
300
200
100
0
UAE
Brazil
Turkey
USA
Vietnam
Thailand
Indonesia
Malaysia
Hong Kong
Italy
Canada
Mexico
Australia
India
China
Russia
Poland
UK
Spain
Philipines
Saudi Arebia
Ireland
South Korea
Japan
Egypt
Singapore
Portugal
New Zealand
Argentina
Taiwan
Sweden
South Africa
The main reason of use in internet users and time spent online is because of
affordable prizes of mobile and internet data packs. Report indicates that more than
760 crore individuals around the globe have mobile phones and around 50% of
11
them are „smartphones‟. So it‟s very easy for people to use internet from where‟re
ever they are. Use of social media continues to grow rapidly.
The recent data from GlobalWebIndex (2018) shows that with the number of
internet users increased the time spent on internet by individuals has also increased
in last one year. Now average time spent by internet users individually is 6 hours
per day with the help their internet powered devices.
Thailand is top throughout the World to spend time on internet with 9 hours 38
minutes per day followed by Philipines 9 hours 29 minutes and Brazil 9 hours 14
minutes per day. Indian internet users are spending 7 hours 25 minutes on internet
according to GlobalWebIndex.
It means the people those using internet are spending one third of their time on
internet. This is a drastic change in habit of individual‟s behaviour because of
technological innovation. It gives wake up call to all marketers to catch them
online. It has been observed that the way of focus of communication from B2B,
B2C, G2C, G2B and even B2G and G2G increased. This reason mostly attracted
the more defined study in the area of „Digital Marketing‟ and its impact on various
factors. Digital impact matters and it has to be analysed for the better use of
marketers and consumers. This study will flash light on impact of digital marketing
on e-commerce business.
2.3.4 Digital Indicators of the World in 2018 ;( Internet, Social Media, Mobile
and Social media user on Mobile)
12
We Are Social, Hootsuit (2018)80 as per the statistics world, population is 759 crores
and 402 crore people are connected with internet through mobile, computer or other
electronic devices. It indicates that more than half 53% population is online.
Around 320 crore people are active social media users throughout the world.
Report shows Maximum people connected to internet through mobile devices. The
percentage of mobile penetration is 68% of population. Almost 300 crore people
connected to social media through mobile.
The report from various authentic sources on population, Internet, mobile users and
social media users clearly shows that world has become digital Global village.
Communication has become easy, affordable, instant and more responsive because
of technology. This is called as a third revolution in the form of digital
communication.
Promotion of brands via one or more forms of electronic media become possible
because in this digital world. The e-commerce infrastructure has been increased and
is increasing every day. A new marketing strategy for business promotion includes
the internet, social media, mobile marketing, electronic boards as well as digital and
Television channels and Radio channels. Hence research on this area is necessary to
find out the impact of digital marketing on e-commerce business.
Online business communication platforms have existed since the local, dial-up
bulletin boards of the late 1970s. Now every organization has adopted corporate
email and always-on Internet connections. Business communication forced to do
combination of automated contact management tools and highly personalized
staffing and sales portals. Meanwhile, social networking services sprang up through
a combination of easy Internet access and flexible mobile technology. Although the
traditional communication shifting perceptions about online communication have
13
brought business users to social media sites, as the process of professional
networking grows less formal.
Kitchen, PJ (2017)38 in his article stated that the challenges faced by marketing and
brand managers are mostly related to interface in between traditional and offline
sale, marketing and communication and the new sales technique of online sales,
marketing and communication and combination in old and new. In this article they
have observed and find out the importance of Integrated Marketing Communication
(IMC).
Groom (2008)39 stated that the marketers including religious marketer are also
aware that they must change product presentation continuously according to
audience and according to every movement of engagement. The change is
unavoidable in this modern era and every “marketing plan” including sell of
religious product must want a mechanism that suits to changing environment which
engages their audience. Groom, also stated in his research that fundamentals of
product may not change but the way in which the product presented to their
audience must be changed to meet the expectations of audience through successive
movement of audience.
To support this he has given example of General Motors provided internet based
facility on GMLink web page, which facilitates one stop solution to all post
14
purchase needs. The use of this portal service customer brand communication and
interactive activities increased because customers visit website often as compare to
shops. Customers also get tips like service reminder, maintenance tips, seasonal
safety tips and special offers. General Motors also provided services like current
resale value, customer relationship numbers on company portal. This results in to
more sales, enhanced attitude and behavioral attitudes towards brand with the help
of functions of Digital Marketing Communication.
Chui (July 2012)41 and others published book on social economy to study the value
and productivity of social technologies. Until 2011the number of social networking
users was 150 crores globally out of which 80% users interact social networks
daily. The percentage of companies using social technologies is 70% and 90%
companies using social technologies for business benefit. Knowledge workers spent
28 hours‟ time every week on writing e-mails, search information and communicate
internally.
In these few short years the social technologies adopted in cultural, social and
economic areas. Millions of people adopted new behaviours by using social media
for conducting social activities, creating social groups, joining different
communities, sharing views/chatting and organizing political activities.
Social media have changed the life of million people. People trust on their social
connections including friends and unknown persons to them even they have never
met in person, for everything including advice on behavioural events. Business is
also changing their behaviours as well.
McKinsey (July 2015)42 Marketing and sales Report says that marketers are
increasing use of social media platforms like Facebook, Twitter and YouTube to
promote their products. McKinsey also surveyed the impact of these marketing
channels recommendations on sales, Return on Investment (ROI) and importance of
these channels.
15
how social media influenced their buying decision process and instance of
recommended products. They found the impact of social media on buying decision
is increased. It also growing fast but its influence varies according to product
category.
The report also observed that consumers accessing social media, reacts different
level for different product categories. A respondent using social media to choose
utility services is 15 % and other categories of products like travels, investment
services, apparels and non-prescription medicines are 40 to 50 percent.
Suja (2013)43 “As we saw in the previous sections, SNS has great impact on the
society, in both benefits and challenges. The advantages are massive, especially for
marketers for their next generation campaigns, and general public for a level
medium for airing their views.”
We have observed that digital influence is increasing but the same time analog
world remain have the importance. Half of the recommendations made offline. The
companies look for the new customers to maximise returns from their marketing
strategies. Social media can engage customers and inspire more influencers to
express more for their products. Consumers those using search engines to get
information about products are also gone through social media before purchase.
Effective use of search engine optimization will also benefit from a greater social
media impact. Even after TV ads consumers prompted to seek social media. It
means TV is not substituting to social media its complement to social media. It is
also experienced that mobile devices and applications will make easier to share
their experiences about product on social media.
This study supports to prove the impact of social media marketing in buying
decision.
16
Fig: 2.6 Rapid Rise of Social Media.
(Image source: www.statista.com Data Source: McKinsey Global Institute)
The above chart data shows the rapid growth of technology platforms to reach to
the users. It shows the progress over last century to reach to 50 million (5 crore)
users worldwide.
The first revolution takes place when Radio technology came in to picture to pass
audio messages to large audience and it took 38 years to reach 5 crore users. The
next revolution came with the introduction of Television and take 13 years to reach
5 crore users worldwide. The arrival of internet changed the pace of technology
users and the reach of 5 crore completed within 3 years. World Wide Web (www)
enlarged the potential audience with innovative services. Facebook just taken 1
year to reach to 5 crore users and the Twitter was even faster than Facebook to
reach up to 5 crore users.
Considering the growth rate of social media to reach to the maximum users this is
the most preferred media to connect to the customers. In present scenario
companies are using this new media to communicate message to the customers.
17
This new media have an advantage of two way communication and easy to reach
and easy to use and more important is quickest way of communication. So that
organizations are forced to use this media along with traditional media to connect
with maximum people. Not only connect with people but the presence in virtual
world through www and other technology oriented medium has become a major
part of marketing strategy.
More than half of the mobile devices used worldwide are smartphones, so it‟s easy
for peoples to get rich internet experience where‟re ever they go. Same time number
of people using social media platforms in all countries increased according to top
platforms in particular countries. Every day 10 lakh users are added during last one
year.
Genuine conversation is the best conversation and it‟s possible though messaging.
A person gives preference to genuine conversation as they feel this conversation
more authentic. The recent report on communication shows that messaging has
replaced other forms of communication. The new form of messaging techniques
18
became more expressive with the new features of universal languages, visual
content, emoji‟s, and GIFs.
Recent survey conducted by WeAreSocial (2018) found that WhatsApp is the most
use messenger app throughout the world followed by Facebook Messenger, Viber,
Skype and WeChat.
As per the CamScore report Facebook, Twitter, Instagram and Snapchat are the
leading social media apps used thought the world.
Chart indicates the world average of use of social media is 13%. Saudi Arabia is
leading with growth rate of 32% and India is on second position in growth rate with
31% growth rate. Indonesia, Ghana, South Africa, Vietnam, Germany, Russia,
Kenya, Morocco and Poland are the other countries after Saudi Arabia and India
and above the average of world growth rate of 13%.
The increase in growth in Saudi Arabia, India and other Asian countries is mainly
because of population and increasing percentage of internet through mobile.
19
Social media sites popularity is varies from country to country but the growth rate is
increasing continuously. The use in respect to time spent on social media is also
increasing. We are experiencing the no of user and increasing time spent on leading
social media site Facebook and WhatsApp messenger in India. It also observed that
some social media sites are increasing rapidly and some are declining.
Dave Chaffy (2018)44 report shows that the use of internet through mobile devise is
increasing at 52% compare to desktop use of 43%. UAE, South Korae and UK are
the slowest increase in growth. The main reason of increased social media growth is
because of high population density, increased mobile network users and affordable
data usage.
Over the last seven years spending on traditional marketing like TV, Radio,
Newspaper, Magazines, Cinema ads & Hoardings has declined in US (source: The
winterberry Group Annual outlook)
In today‟s cut through global competition today‟s business enterprises are going
head to head in marketing strategies to get more customers, to generate more
interest in their particular business. To get it done effectively business enterprises
are using combination of Traditional and Digital media channels or they mix it with
21
digital approach. This is probably not only entertaining and budget oriented but it
also offers valuable insights on corporate worlds most debated question right now
is: Traditional or Digital?
According to Jordan Gin (2016)45 Traditional media marketing and digital media
marketing is carried out in following ways,
Traditional Media platforms are Radio, Print, TV, Cinema, Direct Mail,
Telemarketing, Door Drops (ex. Pamphlets) and Out-of-home advertising (ex.
Hoardings)
TV
Radio Print
Direct Cinema
Mail Traditional
22
You can reach your target local audience. Ex radio play in one location or outside
ad like horading may put in one location for particular area.
It could be easy to understand because most of the people allready known to this
kind of strategy.
The material or technology usedin in this media were eye tracking and high
resolution it could be measurable by brain easily.
According old practice direct mail is easier to process and helps to recall brand.
Ineraction is very less between company and consumers through this media.
TV, Print and Radio advertisements are very costly. Printing cost is high in case of
promotional material and need to hire people for distribution.
Digital Media:
Digital media includes Online Video, Social Media, Display advertising, Search
Engine Optimization shown in Fig: 2.11
23
Online Video
Display Ads
Serarch Engine is the best option to get information about queries of customers.
SEO is very important for success of internet marketing. SEO is a scientific
process to be impleted to find out your product or services in search result. Best
SEO website or pages will appear prior as copare to others and it matters. Only
first few results are considered by searchers. Camusio (2011)46.
Marketers can target local as well as global audience. Campaign can be designed
for specific audience such as demographic, age, income group, gender and interest.
Campaign will be more effective because of target groups.
You can choose content and design message according to audience vice versa
audience have choice to receive content like to read blog, watch YouTube video,
24
banner or text message in short. Audiences have an option to continue or disconnect
communication at any point.
Two way communications is possible in this format with the help of social media
and Apps. Interaction is encouraged.
Data is recorded easily and results can be measured easily. Most of the channels
offer analytical tools. You can see real-time progress.
Small or medium size business can compete with any business globally without
investing huge promotional budget.
Brand development through the well maintained website with quality content
marketing promotion can add significance value. Same can be possible by utilizing
social media.
Using google promotion, email, website and social channels enables your message
can be shared instantly.
In simple worlds the difference between two is one take internet based online
approach, while the other uses more established channels like TV, Print and Radio.
Digital is up course comparatively new in this world. Obviously traditional
marketing media is dominating in last 15-16 years, but now there is an awakening
call for business enterprises digital marketing has seen huge rise in recent times.
Obviously we are passionate about digital marketing but we do use traditional
marketing too.
Ryan and Calvin (2009)47 “A time will come digital marketing will overtake
traditional mass media as the medium of choice for reaching the consumer
tomorrow.”
25
The consumers are turning from traditional mass media marketing and they prefer
to digital marketing. They need personalized communication, continuous
interaction and more engagement activities on line. A consumer spending their
more time in digital technology and this is the most suitable way to reach business
to them.
When I was studying at Graduation College in 1995 and planning to go for post-
graduation in Management. To get information about best management colleges we
have referred Career Magazines, Newspapers, information from alumni‟s and
college visits. But today all the reviews and each and every information is available
online. All colleges have their online presence in digital world. Even students can
search their queries about best management college, best management college in
cities, best management college for particular specialisation and past placement
record of colleges. No need to visit each and every college you can have a visual
tour of college on line. This is tremendous positive change specially among
youngsters for all related queries as well.
Rayan say‟s that digital marketing is “the changing face of advertising.” Because of
advertising on Search Engine, Social Media, Display Ads and video promotion on
sites underlined the importance and influence on audience.
The shift from printing press, radio, TV and now internet are the examples of
upgradation of technology according to time. But up course marketing isn‟t about
technology as its only medium of communication it‟s about people. Adoption of
new technology at every step is needed as who knows what technology will
introduce in future? Digital marketing is not about understanding technology but
it‟s about to understand people. Learning of technology is necessary in digital
marketing but the main key is to understand people.
26
2.7 Shift in Marketing Spending Plans:-
In the fig: 2.12 above presented the survey based in North American companies
used marketing budget for various channels of marketing. The chart clearly shows
the shift of marketing spending from direct marketing to digital marketing.
In graph blue color indicates the percentage of particular marketing channel has
been increasing. The red color indicates the percentage of marketing spending
decreased for different marketing channels.
27
The figure shows the drastic increase in e-mail marketing and social media
marketing budget is increased by 50 percent the previous budget (Marketing chart
2017)83. Print advertising and direct mail budget have decreased by more than 10
percent. The figure also showing the importance of digital marketing as there is
remarkable increase in spending in spite of cost of digital marketing is rising every
year.
The figure shows the traditional channels fall lower. Ultimately the figure indicates
the decrease in Print, TV and Radio advertising budgets.
Marketer has to understand that whether his business is suitable for digital
marketing or not, it‟s totally depend on the nature of business. For example if you
are vegetable farmer in a small village having fixed place of sale or customer like
weekly Bazzar then you don‟t need to use digital marketing. But if you are doing
group farming at large basis then you need to find out new market and you must
need digital presence and digital marketing as well.
Fig: 2.13 Retailers Initiatives to Drive Instore Traffic(Source: Marketing Chart 2017)
28
From last five years marketing has more focused with sales, service and support to
connect with customers. Above figure shows the top 7 marketing initiatives gives
good results to the retailers promotion activities. Special promotion on retailer
websites is on top with 55 percent response. Print ads leads on second number with
49 percent response rate. Email promotion is on 38 percent response rate. Social
media campaigns with 20 percent and mobile ads 18 percent. Location based
promotion respond 29 percent and text notifications with 27 percent response rate.
Martin (2003)48 discover in his studies that email advertising in cosmetic is having
negative relation with usefulness of message and website visits but the same time
positive impact on shop visits. It clearly indicates that the impact of e-mail
advertising depends on product as well. The cosmetic products need real world
touch and feel experience hence the response to website visit is not enough but
customer visits to shop has a good result.
The same thing may applicable for any other digital marketing channel as well as in
few products touch and feel experience create a value to that particular product. But
in this study researcher found that situation is slightly changing and people believe
on digital marketing channels. It means the scenario in e-commerce business is
changing positively. Also the consumer‟s goal directed behaviour and experiential
nature are the factors to impact on e-commerce buying.
Digital marketing channel not only increase online traffic but also increase I-store
traffic as well as per the reports in fig. 2.13.
Blogs: The Blog is a self-published online journals which can be accessed by users
they can make post comment, links other content. Blog trend was popular in
teenagers of UK now it has become popular in rest of the world in all demographic
and geographic areas. Relevant and knowledgeable blog with anchor tags to
important words or phrases direct readers to marketers web page or landing page to
connect with marketer, it will help to generate online and instore traffic.
Louvieris and Oppewal (2004)49 stated in his study that “in spite of personalized
messages, content and timing, channel of communication is most important.”
Costumers channel preferences vary from individual to individual. These
preferences also changes according to information search and stages of buying as
29
they are deciding that which channel is best suitable for their need. He also stated
that finding customers channel preference is critical but it is better to use multiple
channels to get desired results. Personalizing channel will get more moderates
effective results.
Merisavo (2006)50 was concluded in his study that apart from email advertising
mobile messages and mobile advertising has a positive effect on buying behavior of
consumers. It implies that customer communication via digital channel creating
meaningful relationship not only sales. Mobile phone is a ultimate medium of one
to one marketing.
Facebook, Myspace, LinkedIn, YouTube and many other social networking sites
demonstrated that thee new and vibrant model of e-commerce is growing along
with other traditional business models. Myspace prepared website and allowed
business to provide space to publish information about their businesses and
advertise them self‟s. Myspace aggregated large audience base even more than e-
commerce retails sites like eBay and Amazon. Myspace is an advertising based
model and popular in advertising and some days it was one of the top five most
website visitors in numbers and surpassed Google, Amazon and eBay.
30
Now the e-commerce buyers are continuously increasing worldwide as the model
has built trust of consumers in last 15 years.
The people used to buy online at least once in last month is as follows. It shows the
growing number of on line buyers. UK tops with 78% online buyers followed by
South Korea and Germany 74% online buyers in both the countries. In India online
buyers are 26% of total population. Comparative to world over online buyers India
is behind average of global online buyers but numbers of online buyers from India
are huge. The latest data presented by NASSCOM shows that growth rate of Indian
e-commerce customers is 19%. Leading online buyers/ e-commerce users in India
are from urban areas like 4 metros Delhi, Mumbai, Bangalore, Kolkata and the
major cities like Pune, Ahmedabad. In urban internet penetration is 68.84% and
from rural area penetration is 20.26%. There is a scope for e-commerce to increase
in rural India as the internet penetration is increasing in rural area as per the CAGR.
According to researchers study of literature review and present research survey the
percentage may be different but trend of shopping is almost same. Now most online
shopping frequency of products is Flight/Railway/Bus ticket is on top most with
approx. 44%. The second most buying frequency of product is for Movie/Concert
tickets with approx. 29%. Frequency of buying electronics is 17.6%. Buying of
apparels is 6.4% and others approximately 3%.
31
It shows that the consumer buying behavior for particular products is there the only
frequency for that particular product is changed. The most important and common
factor is that consumers prefer to buy services as compare to physical products.
Leading newspaper in India Economic Times (2013) was written that “next billion
users will come from emerging markets and e-commerce areas”.
ASSOCHAM (2015)53 study also revealed that highest increase in e-commerce sales
growth in apparel of 69.5% in 2014 followed by electronic items 62%, baby care
products 53%, beauty and personal care 52% and home furnishing 49%.
The above trend has been slightly changed according to this study and highest sales
growth of Flight/Railway/Bus Tickets of 43.9% followed by Movie/Concert Tickets
28.83%, electronic items 17.83%, apparels and accessories 6.41% and others 3.2%.
This study shows the shift from tangible goods to intangible goods sales growth in
e-commerce industry. Consumers are buying services more from e-commerce or
online. The customer behavior of preference to buy services compared to products
attributes the convenience provided in case of services.
Fig. 2.14 shows the penetration of e-commerce business worldwide by Global web
index. United Kingdom is having highest 77% population is using e-commerce
followed by South Africa 75% and Germany 75%. The e-commerce penetration in
India is 25% according to world web index report 2018.
Neeraj Jain (2016)54 “Offline retailers are concerned about the growing popularity
of online shopping as the new trend is gaining ground amongst Indian customers.
Most of the entrepreneurs are logging in to online portals to cope up with the
changing trend of shopping”. He said “e-commerce is a game changer for the
economy”.
32
e-Commerec Penetration
Egypt
India
South Korea
Philipines
Portugal
Indonesia
Mexico
Turkey
China
Argentina
Brazil
Russia
Vetnam
Saudi Arebia
Italy
Belgium
Canada
Poland
HongKong
Shingapore
Spain
Malaysia
Austrelia
Ireland
NewZeland
France
Thailand
UAE
Japan
Netherland
Taiwan
USA
Sweden
Germany
South Africa
U.K
33
The author is a founder of „Zopper‟ online retail shop and expert in online media
marketing. Above statement indicates the importance of online presence of
marketers. He also mentioned in his studies that online presence also help to
increase offline retailers business. It benefits in both the ways to increase walk-ins.
Every business has their strength and weaknesses itself. The researcher after
rigorous literature review noted some challenges in e-commerce business. There are
different challenges at different stages such as scaling and profitability, Tax
framework, Technological barriers, Platform, high cost of logistics, cyber
theft/payment thefts, and long customer acquisition process. After implementation
of GST it is expected to enhance operational efficiency in tax regulations in e-
commerce industry. GST will shape tax structure, simplify interstate goods transfer,
compliance and tax refund easier.
Yasmin (2015)55 in his research study analyzed the various elements of digital
marketing, comparison between traditional and digital marketing, effects of various
forms of digital marketing on the firm‟s sales and various advantages of digital
marketing to the customers.
The author taken various platforms like e-mail marketing, online advertising, social
media, text messaging, affiliate marketing, search engine and pay per click (PPC)
for study and noted the SEO, online advertising, social media and email marketing
have positive effect on firms sales and other ways have low impact on sales.
Researcher reviewed the results and it has been observed that the study was based
on firm‟s data base and outcomes are based on advertising firm‟s database. As
researcher is done research based on consumer point of view. The result will be
purely based on e-commerce consumers. The channels of digital marketing revised
and taken most appropriate after rigorous literature review.
Attitude towards Digital in India:
The attitude of net users towards digital is varies according to use, need,
communication platform and behavior. Everyone‟s perception is different in
different parameters.
34
According to Hootsuite; we are social (2018) the 79% users believe that digital
technology offers more opportunities than risk. The 77% use digital technology to
complete tasks digitally as compare any other ways and whenever possible. The
maximum people 83% are more conscious about data privacy and data protection.
The 60% people don‟t want to share their personal information and need privacy
from cookies. The 52% people don‟t want to see unnecessary promotional ads on
internet and mobile .They want to stop ads by using various tools.
Total Media Ad. Spending in India:
Earlier in India there was no trust on online information as it is treated as foolish
advertisements. No one was ready purchase online but the trend has been changed
tremendously within last 5 to 6 years. E-commerce industry has boost a trust on
online communication in India and it was helped to boost digital marketing.
Interaction on digital platforms is more comfortable to customers now. Even
marketers like Banking and finance sector are promoting virtual transaction to
minimize the ques at bank branches. This is possible mainly because of internet
access available in India and affordable cost of smartphones. Changing pattern of
lifestyle is also one of the reasons for increase online shopping.
35
DigitalVidya (2018)56 The report of International Journal of advanced Research
Foundation for the period of 2013 to 2018 showed the tremendous growth in e-
commerce and Digital Advertisement as shown in Fig (2.15).
The ad spending on Digital marketing and Mobile marketing has been increased as
34% of total Ad spending and it is projected to reach at almost 40% in 2019.
The above outcome indicates that the use of digital is excellent according to
people‟s response but the same time people are having some doubts in their mind.
They are not using digital communication with full potential because of the fear in
their mind regarding personal information, transparency and privacy factor. The
research students must find out the reasons of doubts in their minds and appropriate
scientific process to be made aware to protect their personal interest. It will help
people to believe more on digital communication and they will use this in full swing
to get maximum use for themselves and ultimately it will help to increase their
productivity by using digital technology.
According to various reliable data providers like Internet World, ITU, Internet Live
Stats and CIA the internet penetration has crossed more than 50% against total
population of World. The usage statistic of internet is 61% users every day, 26% at
least in a week,11% once in a week and 2% people are using internet less than once
in a month. It shows the positive attitude towards digital as the frequency of use is
good. One more indicator is that most of the people are using smart phones to
access the internet. Google.co.in, gogle.com, facebook.com, youtube.com and
googleweblight.com are the top most visitors‟ traffic pooler websites on internet
world. After that xvideos.com, amazon.in, Wikipedia.org and Flipkart.com are the
most crowed (traffic) pooler websites on internet (Alexa rankings).
According to google consumer barometer (Jan 2018) the use of electronic devices
for online activities are 17% people are using internet for use of search engine, 25%
people are using internet to visit and spend time on social network sites, 5% people
are using to play games, 19% people are watching videos and 5% people are using
internet through various devices to look product information online. This research
conducted for adult among national internet penetration population.
36
Most active Social media Platforms:
Most active social media platforms in India according to Global Web Index are
Facebook, YouTube, WhatsApp, FB Messenger, Instagram, Google+, Twitter,
Skype, LinkedIn, Printrest, Hike and Snapchat. See Fig 2.16.
These are the social media sites and apps popular throughout the world in audience
are using. The different Social Media platforms are popular in different countries.
The Facebook is almost used every corner of the world and is the top most popular
social media site among all. YouTube video share site is on second position among
social media user all over world.
In Messenger WhatsApp is on top to send text, audio and video messages and new
added feature of video calling one to one and most recent feature of group calling in
five users. Facebook messenger is on second position in message app.
Snapchat 10%
Hike 10%
Printrest 11%
LinkedIn 15%
Skype 15%
Twitter 18%
Google+ 19%
Instagram 19%
FB Messanger 20%
Whatsapp 28%
YouTube 30%
Facebook 30.20%
These are the social media sites and apps most used at present in world according
survey and reports.
37
Effectiveness in Education Management:
Dhote (2015)57 and others done research on consumer perception with reference to
digital media communication and the factors influencing decision making related to
academics. Research questionnaires designed to analyses decision making of
consumer perception, preference, and experience and influencing factors.
He stated his results as the Digital media impact is very high in the age group of 20-
30. Almost 98% respondents of his research study using digital media to get at least
some kind of information and 55% are influenced because of information collected
from digital media. He also stated that the Facebook is most effective with 31% and
followed by LinkedIn, Discussion forums, Review sites, YouTube, blogs and
Twitter in decision making. Before purchase 94% respondents checked through
google search and 68% through company website and 65% via e-commerce portals.
For employment decision LinkedIn is the most preferred decision making media.
For education related decisions most of the people preferred institutional websites
(93%) for admission related decisions and followed by search engine (84%).
This research shows that people prefer different tools for different purposes. It also
indicates that the platforms are more specialized than general. Those they have
more or less same features but they are dedicated or preferred for some specific
purposes. But the main finding is digital media influence purchase decision making.
38
(a) Whether low internet penetration in India has adversely affected Digital India
initiative and less cash economy and if so, the details thereof;
(b) The percentage of internet service users in India, both mobile and landline, State
wise;
(c) Whether the Government has assessed the need to augment telecom
infrastructure so as to provide internet services in villages, small towns and cities;
(d) if so, the details thereof along with the present status of the internet accessed in
villages, towns and cities, State wise; and
(e) Whether the Government is taking steps to make available quality internet
facilities through various ways to enable the people to easily take part in the
digitized world and if so, the details thereof?
The Minister of State for Information and Communication Mr. Manoj Sinha has
given reply to the above question in Parliament House on 8th Feb 2017.
INTERNET PENETRATION
(a) Internet connectivity is being strengthened for less cash economy. Low internet
penetration can affect Digital India initiatives. In the absence of internet facility to
the users, e-Governance services are not accessible to them.
(b) Service Area wise details of the percentage of the internet subscribers including
both mobile and landline, as on 30.09.2016, as reported by Service Providers to
Telecom.
39
(c) & (d) The Government has assessed the need to augment telecom infrastructure
to provide internet services up to Gram Panchayats and the BharatNet project has
been planned to be implemented in 3 phases for this purpose. This project has been
planned to establish the network infrastructure by connecting all Gram Panchayats
(approx. 2.5 lakh) in the country by using an optimal mix of underground fiber,
fiber over power lines, and radio and satellite media for providing broadband
connectivity by all categories of service providers on nondiscriminatory basis.
Under first phase of the BharatNet project, 1 lakh Gram Panchayats (GPs) are to be
connected by laying underground OFC by March 2017.
Under second phase, connectivity will be provided to remaining 1.5 lakh GPs in the
country using an optimal mix of underground fiber, fiber over power lines, radio
and satellite media, by December, 2018. Future proof network with ring topology
between districts and blocks and blocks and GPs will be implemented in Phase III.
The question asked on internet and use of digital facility to grass root level is
indication of government of India‟s plan to connect villages by broad band internet
connectivity. The government understood the importance of digital communication
in administrative communication to provide ease to offices and citizen services.
40
areas in brief. The assessment of impact on all areas at a time can be vast but we
cannot avoid the impact on all these type of e-commerce. We have included brief
study, information collected on all types but study of all area in detail with analysis
of impact on all areas can be a tough assignment. As the impact on e-commerce
business consumers, it is a vast study. Actually we cannot restrict this study to any
particular geography, region or area as the study is universal type. The area of
study is emerging and to cover the technological upgradation as well. This is a
unique research area where we are finding marketing impact but the instrumental
area is related to technology hence we have to cover functioning of technology
related to „digital marketing‟ communication.
Furthermore, our Researcher also review in this study that men dominated internet
users in India with 71 percent to women‟s 29 percent. It is going to change in
present days in percentage but the men domination in internet users is there.
To assess and compare the digital impact on economy we have studied GDP index
to measure the contribution of e-commerce or internet to a countries GDPs. We
measured world e-commerce platform separately because it plays an important role
for consumers and retailers in countries e-commerce ecosystem. The e-commerce
platform index (eCP) assesses the health of particular countries e-commerce
ecosystem.
Consumers: Study indicates that individual consumers benefit the most from e-
commerce in many developing and developed countries. Access to free web
services, communication tools available on minimal cost. In addition the internet
creates social impact in developing countries by enhancing key areas of
development like education, health, judiciary and overall administration.
Benerg (Aug 2017) said that the consumers are leaders in the era of digitization.
The goal of any company is to provide better experience to consumers. Better
experience creates loyalty and gives feedback. The consumers are exploring new
41
buyer experience with online transactions and shopping experience. This ear is also
called “Information Age” as the customers want to know about product and services
before purchase of product.
The customers are reading reviews, features and price comparison on line and then
they are taking buying decision for that particular product or services.
Ex. Hotel booking through Trivago, e-ticketing and electronic shopping through e-
commerce website gives comparative analysis and price comparison experience
through online information search.
Entrepreneur: Andrew Broadbent (2015)59 concluded his article on tips for digital
marketing for entrepreneurs that, earlier digital marketing was considered fit for pre
product launching campaign. The creation of content, blogging, branding and
awareness of products was considered secondary by entrepreneurs and it is
completely wrong way of thinking. Now customer‟s first expression must come
through internet and media activities long before the actual introduction of product I
market. If entrepreneur don‟t have this experience then they could causing problem
for themselves.
The point is to start online marketing and branding of product at the time of product
research and product development itself. Means the digital marketing lifecycle also
starts from product research and ends with customer satisfaction.
42
In future or even now a day presence of business on virtual world has become must.
Zatakiya (July 2017)60 observed that most of the entrepreneurs in early days ignore
marketing as they are not considering it as urgency and considering as out of budget
and as a liability. “However if done in the right way digital marketing can be a huge
boon for start-ups.”
Rik Walters (Sep 2016)61 “after lot of discussions with marketing executives from
Silicon valley to New York, to Munich, Germany it is clear that now digital is the
lead dog in corporate marketing strategy”
Now a day it is so critical for every organisation to have leadership that can
optimize team performance and better results and it depends on the process
accepted by your organization to implement the plan. Earlier the digital marketing
teams was doing copy and proactive. Now digital marketing teams do expected
changes, focused and flexible in accepting strategies. Today there are lots of
positive trends in digital marketing and enterprises are entering in to more
consistent and productive plans. To build strong digital strategy it is necessary to
work on digital literacy across the entire organisation. The digital leaders continue
to sharpen their impact of their digital team by continuing staff development,
resources and influence.
Kelvin (2012)62 “ICT-based tools to provide access to legal information are not
only necessary to keep up with the needs of the modern networked society, but they
can also foster new reasoning methodologies to improve the services of Public
Administrations”.
43
Digital Communication is an innovative and unavoidable way of communication
through various digital channels to reach the target audience. It is the key of
effective communication with minimum cost. It is the best way to send right
message to right person at right time. It‟s two way communications to interact with
people at large base. In this world, World Wide Web‟s internet age online presence
is must to specify existence of any organisation, online presence is compulsory. So
it applies to government as well to help them to grow to next level. Government
sector have challenge to deals with large base audience. Private sector is using
various digital communication channels to be in touch with their customers and
getting maximum benefit out of it. Same time people are expecting entire
information about government schemes, services, facilities, feedback and query
solving online. So to solve these problems and to meet the expectation of
youngsters, techno-savvy civilian‟s use of digital communication in government
sector is the effective way to reach audience and to aim for new success in Digital
World. Governments are facing increasing demand and expectation from citizens
about range and quality of public services. And the same time government has to set
their political objective to achieve greater trust in government responsiveness,
transparency and greater engagement services. Governments must have capacity to
provide those services as the demand for these services is on rise as the capacity in
some particular areas is on decline in some particular areas like rural areas.
New digital technology emphasizes on speed mobility in the way we live, work and
interacts with each other. They are providing unprecedented opportunities for
government to enable them to transform their complex bureaucracies to become
more agile, citizen centric and innovative. Many countries have launched their
digital campaigns/strategies in last five years but definition of digital vary for being
an umbrella term for a set of technologies and their applications to a new way of
public service delivery to the concept of digital society. Like never before all
governments are experimenting with innovative, technology enabled services and
delivery models which are starting to transform the way of communication.
The term „digital‟ is often a source of some confusion. The „digital‟ is considered
as a broader term for corporate values and practices made opportunities available by
internet. While technology is simply an enabler- social media, mobile, analytics, big
data, cloud, how it is procured- „digital‟ is not just technology.
“Digital means applying the culture, practices, processes and technologies of the
internet era to respond to people‟s raised expectations.” -Tom Loosmer, Former
GDS-er.
45
infrastructure, governance process of front and back office transformation to deliver
new way of communication.
The Indian government‟s initiative „Digital India” is growing affordability and
usage of smartphones and internet penetration in rural India. Rapid growth of
digitization strengthened the digital infrastructure.
46
initiatives should look for ways of enhancing people‟s participation in policy
decision-making and other governance processes” (Raúl Zambrano, 2013).
Half of the population of world is under the age of 30‟s and live in cities, global
penetration of mobile is increased, one third of society use internet, but one fifth
still below poverty line. The world is urban, mobile, increasing digital but still
unequal. Making youth as a working partner can help to increase productive
citizens. After all youth is major human resource and key economic growth factors.
Daniella Ben-Attar and Tim Campbell have identified a framework for youth and
ICT-enabled governance. Their research shows how mobile platforms, the most
important ICT tools that affect youth, can enhance their engagement in local
government affairs and foster inclusiveness and responsiveness. Through crowd
sourcing, geo-referencing, and communication networks, youth are leading the way
in political participation. Digital government has concentrated on e-portals and
access by citizens to government services, such as licenses, permits, and records.
These early developments were characterized by the generic term „e-government‟,
which concentrated on increasing the efficiency of government operations and
services by using internet.
47
(Fig.2.17 Digital Civics. Photo curtesy FUPOL)
According to United Nations e-government survey 2016 India is grouped in middle
E-Government Development Index (EDGE) (.25 to .50). E Government ranking of
India is 107 by UN.
48
Country Ranking of Digital Governance
8
0
Singapur Norway UAE South Saudi United United India Germany Brazil
Korea Arebia States Kingdom
On the eve of the Barcelona Smart Cities Expo where 600+ municipal authorities
from across the world will gather to showcase the latest trends in the use of digital
technologies and discuss the common challenges facing them in the future, it is
timely to consider how UK local government is responding and planning for the
digital revolution. Connectivity, Digital Skill, Digital capability, Digital Sector
Business, Wider economy, Safe & Secure cyber space, Digital Government and
Data are the fundamentals of UK‟s Digital strategy.
As Cabinet member for Finance, Technology & Growth at the London Borough of
Camden and Chair of new ICT Shared Services Board with Islington and Haringey,
49
over the past few years I‟ve been considering how digital transformation can be
better progressed across local government interviewing leaders of councils, cabinet
members and councillors, chief information officers, chief executives and senior
officers.
50
network is providing Wi-Fi across the UK train routes and forecast 90% passengers
journey with broadband connectivity. Governments future planning of full fibre and
5G connectivity by delivering ultrafast speed and it will play crucial role in future
development. Being a world leading digital economy UK government ensure that
digital skill of society and workforce.
Digital Skills: England was the first country in the world to introduced mandatory
computer teaching in school curriculum. Training provided to teachers for
professional and updated knowledge in computing. Apart from formal education
there are number of innovative programs for young people to develop their digital
skills, like 5000 code clubs, Raspberry Pi Foundation and BBC make digital
program in partnership with 25 organisations. Pi Foundation and NCS build skills
for work life, take new challenges and make new friends.
Digital skills for digital jobs: To maintain position as leading global digital
economy UK develop a range of digital skill specialists for specific digital jobs. UK
introduced new innovative Digital degree Apprenticeship program from National
College of Digital Skills opened in 2016 and funded by UK government.
Cyber security skills: To understand the cyber security issues and to identify
needed action UK government developed Cyber Security Skill Strategy with the
help of academia and industry.
51
Business oriented digital skill Programs:
Google offers five hours free digital skill training to anyone in UK.
Amazon Web Services (AWS) started free training and job placement program in
UK for young adults.
Lloyds bank‟s has 23000 digital champions working on digital charities to provide
digital skill training to people of UK.
Cisco networking academy provides IT skills and building material supports for
learning institutions and individuals.
Apple‟s everyone can Code is a new approach to coding that lets everyone learn,
write and teach coding. Apple teacher program is free professional learning
program for teaching and learning.
Health Care, Tax, Education, Transport, Digital Signalling, Smart Ticketing, Rail
Data, Energy, Policing, Justice, Prisons, Welfare, Diplomacy, Culture and
Digitisation of the planning system.
52
2.11.5 Government Digital Strategy in Republic of Brazil:
53
3) Leadership and political commitment
4) Protecting privacy and ensuring security
5) Creation of a data driven culture and rapid digitization of society
6) Effective organizational and governance frameworks to coordinate
7) Strengthen international cooperation with other governments
8) Development of clear business cases
9) Reinforced institutional capacities
10) Procurement of digital technologies
11) Legal and regulatory framework
54
Fig 2.19 Digi Locker, Digital India‟s Initiative (Source: Digital India govt. website)
New services provided by government under this initiative are Digi Locker, e-
education, e-health, e-sign, e-sampark, digital attendance, go-cashless and
national scholarship program.
There are not enough studies conducted in the area of digital marketing and this
area of study needs continuous upgradation as the technology upgrades every day.
55
This chapter presents a literature review of digital marketing and its impact on e-
commerce business consumers. The review covers 86 no‟s of books, thesis, journal
articles published from 1995 to 2017 on internet marketing, online marketing,
digital Marketing, business and management, information communication and
Technology and e-commerce. Research reports by authentic bodies, websites and
various government reports on digital technology also referred for review of
research study.
The Chris Fill gave weightage to engaging audience. Also given information about
digital media devices and basic information about digital marketing channel but
study needs more information, use and impact of digital channels to understand
exact use of digital marketing channels to consumers. Effectiveness of digital
marketing channels and comparative study of channels is also necessary.
It is academically correct as all digital marketing ways are direct. It is many more
than that as it collects data, personal details, segment audience, send tailor made
messages, according to public interest, measures daily output and return on
marketing investment.
Actual effect of digital marketing on e-commerce buying from consumers must be
analysed. Most effective ways of digital marketing communications must be
analysed. And comfort level of consumers and marketers, trust level, convenience
and affordability at consumer and marketers level is needed to be more highlighted
in study. There for impact of digital marketing on buying has to be analysed and
best optimum use of digital marketing in different situations must be increased
through further study.
The present study is more focused on comparison of traditional verses offline sale
and marketing communication, also emphasizes on importance of integrated
communication by using new ways. The result shows that major increase in
research on Digital Marketing and e-commerce area in last 5 years and it will
increase in future. Maximum research conducted in US, UK and European
56
countries. More research was conducted focusing on marketer‟s data and in this
study the focus is actually from e-commerce consumer‟s response.
The study needs more information, use and impact of digital channels to understand
exact use of digital marketing channels to consumers. Effectiveness of digital
marketing channels and comparative study of channels is also necessary.
This review will be source for anyone interested in Digital Marketing and E-
commerce research and will support to create further interest in this area. Apart
from researcher it will add inputs to business houses those who are in e-commerce
and other using Digital Marketing strategies for business. This research will be a
guideline for techno savvy, digital users.
2.13 Conclusion:
57
CHAPTER NO. 3
Questionnaire
1
CHAPTER NO: 3
The title of the research study is “A study of the impact of „Digital Marketing‟ on e-
commerce business” it indicates that researcher under this research study focuses on
use of digital marketing, channels of digital marketing, frequency of e-buying and
its impact on e-commerce buyers. The consumers having internet access and
devices like mobile, computer, tablets and experienced online buying/ e-buying are
the major area of study. Impacts on end users, e-buyers are evolving the sign of
development in e-commerce business.
As the title clearly indicates that this study of digital marketing is vast and its scope
is wide. The study will be conducted in Pune region as the Pune city is vibrant and
cosmopolitan having students all over India and abroad and being a major IT hub,
employees from every corner of India and abroad, automobile hub known as Adroit
of east and very well versed with e-commerce is a true representation for research
study.
The consumers having internet access and devices like mobile, computer, tablets.
These factors are evolving the sign of developing world. It shows the rate of growth
of internet usage and indicates that developing countries of the world are fast
approaching the rate of internet access of the business world.
The use of smart mobile phones and internet penetration via mobile is the major
reason for the growth of developing world. The smartphones provides easy
connectivity with affordable cost. A much cited 2014 study by the Group Special
Mobile Association (GSMA) states‟ “The developing world overtook the developed
world in terms of smartphone connections in 2011 and today two phones out three
on earth are smartphones according to new study. The prediction is that by 2020
four out of every five smartphones will come from developing world.
Kotler (2010)12 According to Philip Kotler and Armstrong 4P‟s model helps to
reach marketing goal and it is being used better in Digital Marketing effectively.
2
Therefore, there are opportunities to continue high revenue potential for business
worldwide through digital marketing. Direct and digital marketing of products or
services were used to support direct marketing or vice versa or provided as a
standalone strategy. This will provide important benefit to the society and economy
of developing and developed countries. In some areas, domestic commerce is not
highly developed in that area prices may be high and limited variety and quantity of
products available in selected retail shops. Providing an option of e-commerce
through digital marketing is a great benefit to the local consumers.
It is beneficial for small and medium size enterprises. They need well-known think
tank and these small-scale industries are important part of the economic
development of countries. Digital marketing and e-commerce industries will play a
crucial role in future growth, innovation and prosperity.
Considering the rise of e-commerce business and the need of digital marketing to
promote product and services there is a huge scope for research in this innovative
area. It would definitely the road map to the e-commerce business, Digital
marketers and individual e-commerce consumers.
3
3.2 Objectives of Research Study:
The purpose the research on this topic is to find out appropriate solution to problem
which researcher identified above in „problem statement‟ after rigorous literature
review. Researcher also understood to find out solution with the help of scientific
procedure. The aim of researcher is to find out hidden truth which has not been
discovered earlier. This research study has its own specific agenda and accordingly
the research objectives decided in broad prospective as follows:
On the basis of the objectives for the study the researcher has proposed the
following hypotheses for the study-
H0: The attitude towards digital advertisements and satisfaction with the product/
service bought online are not significantly related.
H1: The attitude towards digital advertisements and satisfaction with the product/
service bought online are significantly related
4
2. HYPOTHESIS-II. Digital Marketing Channels and Frequency of e-
buying
Sub Hypothesis:
H0a: Search engine does not significantly influence frequency of e-buying
H1a: Search engine significantly influence frequency of e-buying
H0d: Social Media Channel does not significantly influence frequency of e-buying
H1d: Social Media Channel significantly influence frequency of e-buying
H0: Clicking and following digital advertisement (on internet) is not significantly
correlated with the frequency of e-buying.
5
4. HYPOTHESIS-IV. Frequency of using internet and e-buying frequency
H0: Frequency of using internet and e-buying frequency are not significantly related
H1: Frequency of using internet and e-buying frequency are significantly related.
6
3.5 Pilot Study for Preparation of Questionnaire
Researcher analysed that pilot study is most important part in research study. This
research study conducted to aiming descriptive method of research. Researcher
prepared Objectives and Hypotheses after rigorous literature review linking with
title of the study. Researcher has prepared questionnaire linking with objectives and
hypotheses for testing.
Data entry of pilot questionnaires was done into computer with the help of statician.
Entry was done directly in to Statistical Package for Social Sciences (SPSS)
through google docs format with specific codes used for each questionnaire item.
The analysis was mainly descriptive with age, use of internet, influence of digital
marketing, frequency of e-buying. The mean, mode, median, minimum and
maximum vales of scales analysed.
Researcher understood the study and understood leading-age theories and practices
in Digital marketing/Social Media Marketing/Online marketing through pilot study.
Researchers understand the consumer engagement, influence on buying decision
and satisfaction level at Digital Marketing in e-commerce business.
Researcher investigated the influence of Digital Marketing and use of e-commerce.
Researcher constructed corrected questionnaire and constructed model for
measuring Impact of Digital Marketing on E-commerce business after pilot study
and research methodology adopted after testing results of pilot study.
7
Researcher finalised questionnaire, items of questionnaire and scales for
measurement after successful pilot study.
Researcher used to collect primary as well secondary data for research study.
The source of data is of two types 1) Primary data and 2) secondary data.
8
CHAPTER NO. 4
RESEARCH METHODOLOGY
4.1 Introduction of Research Methodology
Analysis
1
CHAPTER NO: 4
RESEARCH METHODOLOGY
The idea behind to use research methodology is to solve the problem. The way and
to describe the problem is depends on the individuals own perception or the
fundamental assumption. Every individual‟s perception of reality for the same
problem may differ according to view and way to tackle the problem and they will
come up with different methods to solve the problem. There for its important to
agree on single and best suitable methodological approach to create common
understanding of reality. The adoption of such research methodology lead
researcher to decide an option of various tools like paradigm, model etc., to
connected to chosen approach.
In Research methodology view used for research is as important as the study may
change according to the methodological approach choose to study. People
understand, explain, and improve business depending on the approach being used
(Arbnor and Bjerk 1997)65. According to choosing methodological approach, the
way of data collection or information may change. Different research methodology
has different characteristics and terminologies. Arbnor and Bjerks illustrated these
approaches. After brief study and deeper insights into the methodological approach
researcher introduced in this research work.
2
4.2 Research Methodology Used: Descriptive
Most of the social research comes under this category. In descriptive research
researcher must able to find what he wants to measure and clear-cut definition of
population of study and researcher can aim to obtain accurate and complete
information in the study. Descriptive research refers to survey and fact finding.
Researcher can seeks to measure frequency of shopping, preference of people
according to CK Kothari (2007)70. Hence the descriptive research method is
suitable for the study.
3
Leedy and Ormrod (2001)71 defined descriptive research method as “A type of
research involves either identifying the characteristics of an observed phenomenon
of exploring possible associations amount two or more phenomena”.
“A study involves collecting information through data review, surveys, interviews
or observation” Gay (1987)72
Observation/
Hypotheses
Testing
Reject/
Testing/
Accept
Observation
Hypothesis
Researcher studied all three ways of descriptive research method and theses are;
Observation, Case study and Survey.
In observation method researcher is viewing and recording the participants. In case
study method is described as in depth study of individual or group. The survey
method is of brief interview of individuals on particular subject.
4
Method Used for Data Collection: Personal Schedule Method
The research study used personal schedule method to collect the data for this
study. Structured interview questionnaires prepared for interview of ecommerce
customers. Personal schedule method is the most popular method to collect the data
from respondents. In this study researcher is interested to find out attitude of
internet users towards e-commerce consumers and influence of various Digital
Marketing channels on their buying behavior.
The data of the study is large and could not be observed easily as the researcher
chooses to use „personal schedule method‟ along with structured questionnaire to
collect data easily.
Researcher approached according to the allotment of quota allotted for particular
area of Pune region. For allotment of quota Pune region divided in to three sub parts
as Pune city, Pimpri Chinchwad Municipal corporation area and Suburban‟s of
Pune region. Primary data from this allotted area by using simple random sampling
collected by personal schedule along with structured questionnaire.
Apart from this understanding of e-commerce management and digital marketing
agencies is needed but they are not comfortable to answer structured questions. To
have a solution on this issue we have conducted informal meetings with
unstructured questionnaires with top and middle management of e-commerce
companies and Digital Marketing agencies. This data also noted and observations
written based on that data wherever is necessary.
Descriptive type of research used to find the facts based on available information
and analysed data for new evaluation.
5
And in the last section demographic characteristics of the respondents were
collected.
To analyse frequency of shopping, preference of e-consumers and association of
Digital Marketing with buying behaviours descriptive research design is most
suitable.
4.3.2 Population:
Pune Region includes Pune city, Pimpri Chinchwad and Suburban‟s (Alandi,
Khadki, Dehu, Dehuroad, Poud road, Moshi, Mulshi, Hinjewadi, Talegaon,
Wagholi, Manjri, Loni and others).
The „target population‟ is the individuals of e-commerce consumers from entire
Pune city.
The study is limited to the e-commerce users out of internet users in Pune approx.
half population within the geographical boundaries in and around Pune city. It
includes suburban‟s and others.
Target population based on IAMAI (Internet & Mobile Association of India) report
published in Mar 2017.
4.4.1 Sample unit- Individual consumer who has been engaged in e-commerce
(Who has seen digital advertisements, and/or bought something using any e-
commerce platforms).
6
Where:
Now at 95% confidence and at least ±5% precision z=1.96 (from z table),
we get
Data instead of determined 385, researcher taken 437 respondents for betterment of
results and more accuracy, hence the sample size is 437.
Primary data collected from all the areas of Pune city by using combined sampling
technique. As allotment of quota according to population percentage Area wise
quota allotted according to the density of population of area so that representation
from all areas is assured.
7
Respondents approached by using simple random sampling. First respondent
approached and questionnaire filled with personal schedule. Interval has been given
after every response was collected as the time spent in engaging with one consumer,
few (approx.10) consumers skipped and every tenth consumer approached for
response by using simple random sampling technique.
Data is most important ingredient in any research conducted in any field. Research
study method may be different but every research method based on data. Based on
data analysis and findings researcher can interpret and conclude outcome.
The study conducted in vibrant city of Pune as one of the fastest growing industrial
destination in Maharashtra state. Pune attracted students and professional across
India and abroad and called as an Oxford of east and Adroit city. Apart from that,
the IT hubs like Hinjewadi and Kharadi. It leads to be a one of the leading digital
buying hub in India.
Primary data and secondary data is must for analysis, findings and conclusion of
research study. Both primary and secondary data collected for the study.
Primary data collection is an important part of study and it needs structured plan.
Researcher prepared structured plan and accordingly prepared questionnaire based
on objectives and Hypothesis of study. The pilot study was conducted in Pune city
area and after successful results of pilot study within a period of six months primary
data collected.
8
People are approached in Pune city, Pimpri Chinchwad and suburban areas like
Alandi, Khadki, Dehu, Dehuroad, Poud road, Moshi, Mulshi, Chakan, Hinjewadi,
Talegaon, Wagholi, Manjri, Loni, others to collect data from all areas.
Places where data collected are Malls, Banks, Market, Private co. Offices, Railway
station, Travel points, IT companies, Colleges, government offices and other
crowded places. First respondent approached and questionnaire filled with personal
schedule. Interval has been given after every response was collected as the time
spent in engaging with one consumer, around 10 consumers skipped and next
consumer approached for response by using simple random sampling technique.
Almost 800 people were approached using mixed sampling technique. However;
only 470 people agreed to respond to the questionnaire practically from allotted
areas are,
Data instead of determined 385, researcher taken 437 respondents for betterment of
results and more accuracy, hence the sample size is 437.
9
4.6 Research Techniques used for Study and Analysis:
The researcher according to the requirements various techniques used to analyse
data scientifically.
Primary data collected through using „personal schedule‟ questionnaire for the
study. Thirty items divided in four sub areas according to objective and hypotheses
of study.
The five sub areas are-
Reasons for buying online,
Frequency of e-buying,
Attitude toward digital marketing,
Influence of digital marketing channels and
satisfaction of e-commerce consumer experience.
In addition to these subscales, some close ended questions were also included in
study by researcher. In last section demographic characteristics of the respondents
were collected.
Researcher used scaling in questionnaire to get clarity and simplicity to the
respondents. Rating scale, Linkert scaling and preference techniques used to answer
the questionnaire.
Sample size decided by using Cochran Formula to take valid sample size.
To check the Normality of data: Parametric test to check the Skewness and
Kurtosis value and Histogram.
SPSS run to check the reliability of data: Cronbach's Alpha test used.
For Hypothesis Testing: One-Way ANOVA and Pearson Correlation tests are
used.
10
CHAPTER NO: 5
DATA ANALYSIS
INTERPRETATION AND
HYPOTHESIS OF THE STUDY
5.1 Introduction
5.11 Conclusion
1
CHAPTER NO: 5
5.1 Introduction
All the responses are collected through a structured questionnaire. This chapter will
throw light on analysis. Initially the data is cleaned for appropriate results. After
having data cleaned the statistical tests are used for achieving objectives of the
study. Graphical representation of the responses is also given for better insights.
Out of 470 responses 30 were found to have missing values. When responses are
coded in SPSS, ideally there should not be any missing values. However due to
some limitations of data collection methods there are chances that some of the
samples may miss some of the items of the questionnaire. So practically it was
found difficult to avoid missing values completely. To replace these missing values
ideally such questionnaire should be returned to the respective respondents for
completing it. However it was very difficult to reach to such respondents after
having completed the data collection process. To overcome this issue, it was
decided to replace missing values by the mean value of other responses of the
respondent. However it is also not good to replace all missing values by the mean
value. It was thought to be appropriate to replace missing values; only if the number
of missing values is less than 10% of total questions in the questionnaire. As there
are total 30 items in the questionnaire, it was decided to replace missing values by
the mean only if the number of missing values is less than or equal to 3 for
individual respondent. Out of 30 responses which contained missing values 12
were found to have high number of missing values and therefore were discarded
from analysis. Remaining 18 responses were treated in the manner discussed earlier.
2
5.2.2 Treatment of unengaged responses
Respondents may not give responses with full attention for one or more reasons.
Some respondents mark only one value (on Likert‟s scale) right from first question
till last question. Such responses maybe identified as unengaged responses and
should be treated appropriately. To find unengaged responses all the responses
were coded in MS-Excel. Standard Deviation (henceforth S.D.) of all responses was
calculated using formula. Smaller values of S. D. indicate that respondent has
continuously recorded same response for all the items. For instance respondent
marked 1 (or 2, or 3, or 4, or 5) to all items. Since all such responses will be on the
mean line only the S.D. would be very close to zero.
All such responses for which Standard Deviation (SD) is smaller than 0.3; are
discarded from the study to obtain appropriate results. Total 21 such responses are
discarded.
Since many of the tests to be conducted for analysis purpose are parametric tests.
Parametric test assumes that the data is normally distributed. Therefore it was
necessary to check the normality of the data before proceeding for parametric test.
Parametric tests assume that the data should be normal.
3
For this purpose Shapiro-Wilk, Skewness and Kurtosis test and Histogram for
normality of parametric variables was analysed.
Shapiro-Wilk
Statistic df Sig.
[Hate going to shops] 0.865 437 .000
[Availability of extensive information] 0.897 437 .000
[Product reviews] 0.895 437 .000
[Certain products are available only online] 0.871 437 .000
[Convenience / Service] 0.901 437 .000
[Enables price comparison] 0.858 437 .000
[Saves time] 0.762 437 .000
[Sales / Offers] 0.815 437 .000
How often have you clicked digital ads on day to day basis? 0.856 437 .000
[Digital ads make me purchase the product] 0.915 437 .000
[Digital ad remind me of buying certain things when I am at .000
work] 0.881 437
[Digital ads are more appealing] 0.893 437 .000
[Digital ads often offer comprehensive information] 0.893 437 .000
[Digital Advertisements are often relevant to me] 0.901 437 .000
Search Engine 0.867 437 .000
Mobile Advertising 0.886 437 .000
E-mail 0.878 437 .000
Social Media 0.883 437 .000
Direct e-commerce website/ Application 0.873 437 .000
Digital Display 0.868 437 .000
How often do you access internet to research products, .000
information and prices? 0.741 437
What is the main reasons for using Internet? 0.788 437 .000
How often do you buy products online? 0.91 437 .000
Mean_Reason_e_com 0.792 437 .000
Mean_Digi_Mkt_Media_trustworthiness 0.818 437 .000
Mean_Attitude_towards_Digi_Mkt 0.85 437 .000
Mean_Digi_Mkt_Channel_Influence 0.862 437 .000
4
This table 5.2 shows that the significance value (p) is less than .05 (p<.05).
Therefore we assume that the data is normally distributed. Hence parametric test
can be conducted for analysis of the data according to Shapiro-Wilk test result.
If skewness value is close to zero in skewness test then it is assumed that data is
normally distributed. Skewness tells us the amount and direction of departure from
horizontal. If the skewness is 0 then it assumes that data is purely symmetrical and
not normal.
Kurtosis test explain us the height and sharpness of the central peak relative to bell
curve standard.
Both Skewness and Kurtosis tests are used for the study to check normality of the
data.
Std. Std.
Error Error
Skewn Kurtos
N of of
ess is
Skew Kurtos
ness is
Mi
Valid ssi
ng
How often do you access internet to
research products, information and 437 0 0.971 0.117 -0.25 0.233
prices?
1_What are the main reasons for
437 0 0.758 0.117 0.16 0.233
using Internet?
How often do you buy products
437 0 0.256 0.117 -0.74 0.233
online?
[Hate going to shops] 437 0 0.125 0.117 -0.176 0.233
[Availability of extensive information] 437 0 -0.183 0.117 -0.751 0.233
[Product reviews] 437 0 -0.44 0.117 -0.369 0.233
[Certain products are available only
437 0 -0.68 0.117 -0.378 0.233
online]
[Convenience / Service] 437 0 -0.308 0.117 -0.442 0.233
[Enables price comparison] 437 0 -0.717 0.117 -0.405 0.233
5
[Saves time] 437 0 -1.04 0.117 -0.128 0.233
[Sales / Offers] 437 0 -0.734 0.117 -0.406 0.233
11.94
Most frequent online purchases_1 437 0 3.156 0.117 0.233
2
How often have you clicked digital
437 0 0.528 0.117 -0.728 0.233
ads on day to day basis?
[Digital ads make me purchase the
437 0 -0.091 0.117 -0.557 0.233
product]
[Digital ad remind me of buying
437 0 -0.589 0.117 -0.145 0.233
certain things when I am at work]
[Digital ads are more appealing] 437 0 -0.434 0.117 -0.196 0.233
[Digital ads often offer
437 0 -0.3 0.117 -0.53 0.233
comprehensive information]
[Digital Advertisements are often
437 0 -0.342 0.117 -0.384 0.233
relevant to me]
Search Engine 437 0 -0.708 0.117 -0.184 0.233
Mobile Advertising 437 0 -0.409 0.117 -0.672 0.233
E-mail 437 0 0.377 0.117 -0.502 0.233
Social Media 437 0 -0.439 0.117 -0.559 0.233
Direct e-commerce website/
437 0 -0.552 0.117 -0.327 0.233
Application
Digital Display 437 0 -0.746 0.117 0.277 0.233
How much satisfied are you with the
products/ services you bought 437 0 -0.469 0.117 -0.091 0.233
through digital channels
Mean_Reason_e_com 437 0 -0.694 0.117 -0.109 0.233
Mean_Digi_Mkt_Media_trustworthin
437 0 0.443 0.117 0.245 0.233
ess
Mean_Attitude_towards_Digi_Mkt 437 0 -0.523 0.117 0.696 0.233
Mean_Digi_Mkt_Channel_Influence 437 0 -0.254 0.117 -0.432 0.233
----------------------------------------------------------------------------------------------------
From above table no. 5.3 it is observed that skewness values and kurtosis values for
all the variables are less than 1. This signifies that the data is normally distributed.
Based on this assumption parametric test can be used to analyse statistical results.
6
5.4.3 Normality of the Data using Histogram
7
8
9
10
11
12
Histograms with normality curve also show the data is normally distributed. Most
of the frequency counts are available on the middle and the rest of the counts lying
off out in the tails. It indicates that most of the distribution of data occurs natural.
Hence parametric test can be conducted for further statistical analysis of the data.
13
Table no. 5.4 Reliability Statistics
.844 30
Since the Cronbach‟s alpha value is higher than .7; the questionnaire is considered
reliable.
All the items of the questionnaire were investigated for their frequencies. This
section of the chapter includes the frequency tables and graphical representation.
Table no. 5.5. Frequencies- How often do you access internet to research
products, information and prices?
14
Chart No. 5.1 How often do you access internet to research products,
information How
and prices?
often do you access internet to research products, information and
prices?
Once in a week
17.62%
From table no. 5.4 and chart no. 5.1 it is seen that more than 56% of respondents
use internet to search product, information and prices; daily and multiple times in a
day. The percentage of respondents using internet 4-5 times weekly is also 26.65%.
This shows the potential of digital marketing. Since people are already using
internet for information search it has become relatively easy to broadcast
advertisements or information through different digital marketing channels like e-
mails, mobiles, social media etc.
This signifies that consumers are very well versed with the use of internet for
product and related search. Such thing is favourable for digital marketing and e-
commerce business.
Consumers were asked for some reasons (other than searching for product, its price
and related information) which propel them to use internet. Table 5.6 shows the
frequencies of responses.
15
Table No. 5.6 Frequencies- What are the reasons for using Internet?
Others
1_What are the main reasons for using Internet?
E-commerce
Entertainment
Info search
Chat
0 10 20 30 40 50
Percent
Table no. 5.6 and Chart no 5.2 surprisingly observes that email and information
search are the main reasons for using internet. Almost 84% respondents are using
internet for information search and sending or checking email. So marketers can use
this information to design their digital promotion campaign.
16
5.5.3 Frequencies- How often do you buy products online?
Total
437 100.0 100.0
16.02%
27.92%
30.43%
More than 30% respondents reported that they buy product online moderately often.
Only around 10% of respondents said that they buy products online extremely often
17
and 16% buy online quite often. These figures show that the market is full of
potential for e-marketers and e-commerce.
40
30
Y Axis
Strongly Disagree
19.45%
Neutral
20 41.88% Strongly Agree
Disagree 1.6%
32.27%
Agree
10 4.81%
0
Strongly Disagree Disagree Neutral Agree Strongly Agree
18
Table no. 5.8 makes it clear that more than 50% of respondents do not avoid
visiting shops. So if people prefer online buying that does not mean, people do not
buy from shops or do not visit shops.
Textbox
Chart no. 5.5. Availability of extensive information
[Availability of extensive information]
Strongly Disagree
1.6%
Strongly Agree
16.02% Disagree
17.85%
Agree Neutral
35.24% 29.29%
Chart no. 5.5 shows that more than 50% of respondents agree that extensive
information is available on e-commerce platform. Only around 19% of respondents
19
reported that they don‟t think that extensive information available. It indicates that
availability of information about product or services is equally important in e-
commerce business.
Valid Cumulative
Frequency Percent Percent Percent
Valid Strongly
Disagree 28 6.4 6.4 6.4
Disagree
43 9.8 9.8 16.2
Neutral
142 32.5 32.5 48.7
Agree
133 30.4 30.4 79.2
Strongly Agree
91 20.8 20.8 100.0
Total 437 100.0 100.0
Strongly Disagree
6.41%
Strongly Agree Disagree
20.82% 9.84%
Neutral
Agree 32.49%
30.43%
20
Chart no. 5.6 makes it clear that more than 50% of respondents agree that they can
easily check reviews on the product they likely to buy. Product reviews are helping
to boost buying decision it has to be kept in mind while marketing online products.
Table no. 5.11 Frequencies- Certain products are available only online
Disagree
49 11.2 11.2 19.2
Neutral 85 19.5 19.5 38.7
Agree
169 38.7 38.7 77.3
Strongly
99 22.7 22.7 100.0
Agree
Strongly Disagree
8.01%
Strongly Agree
Disagree
22.65%
11.21%
Neutral
19.45%
Agree
38.67%
21
It is observed from chart no. 5.7 that almost 60% of respondents prefer to buy from
online only because particular products are available only to be bought online.
Specific products available online is also a substantial reason for e-buying.
Valid Cumulative
Frequency Percent Percent Percent
Valid Strongly
Disagree 14 3.2 3.2 3.2
Strongly Disagree
3.2%
Strongly Agree Disagree
17.62% 13.04%
Neutral
Agree 32.27%
33.87%
The respondents were asked that they are buying online because of convenience?
Out of 400 respondents 77 are strongly agree and 148 are agree. It is observed that
22
more than 50% of respondents find it convenient to shop online. This statistics is
favourable for e-commerce.
Strongly Disagree
4.81%
Disagree
13.04%
Strongly Agree
30.43%
Neutral
16.02%
Agree
35.7%
More than 65% of respondents agree (chart no. 5.9) that price comparison is easy in
e-commerce (shopping online). The study results that price comparison of products
23
and services available on online as well as offline is easy and consumers always
prefer low price items to buy. Easy price comparison motives to e-commerce
consumers.
Valid Cumulative
Frequency Percent Percent Percent
Valid Strongly
Disagree 7 1.6 1.6 1.6
Strongly Disagree
1.6% Disagree
12.81%
Neutral
9.84%
Strongly Agree
51.26%
Agree
24.49%
Chart 5.10 shows that, almost 75% of respondents said that online shopping saves
time and thus it can be considered as most influencing reason for shopping online.
24
Time saving is a most important factor resulted from this study according to
respondents. This may be most influencing factor among all other factors taken in
to consideration in this study.
Strongly Disagree
1.6%
Disagree
6.64%
Neutral
Strongly Agree 24.26%
45.08%
Agree
22.43%
Chart no. 5.11 shows that more than 65% of respondents find sales/ offers attractive
on e-commerce platform as compared with the traditional retail shops. The marginal
number of respondents preferred to buy because of attractive offers available on e-
commerce.
25
5.5.5. Frequencies- Most frequent online purchases
Flight/Railway/ BusTickets
43.94%
It was found that most of the respondents reported that they use e-commerce
frequently for ticket booking. From chart no. 5.12 it can be interpreted that use of
e-commerce is most frequent for buying services than products. Such behavior can
be attributed to the convenience e-commerce provide in case of services.
26
Table no. 5.17- Frequencies- How often have you clicked digital ads on day to
day basis?
Cumulative
Frequency Percent Valid Percent Percent
Valid Extremely
often 161 36.8 36.8 36.8
How
Chart no. 5.13- How often
often have
have youyou clicked
clicked digital
digital ads ads on to
on day day tobasis?
day day basis?
Slightly Often
11.44%
Extremely often
36.84%
Moderately often
25.86%
Quite often
22.65%
More than 50% of respondents reported that they have clicked digital ads on day to
day basis more often. Smart phones and availability of internet may make more
accessibility of digital ads to respondents. Study shows that viewership for digital
advertisements are good.
27
5.5.6- Frequencies for Subscale- Attitude towards Digital
Marketing
Valid Cumulative
Frequency Percent Percent Percent
Valid Strongly
Disagree 42 9.6 9.6 9.6
Strongly Disagree
9.61% 9.61% Disagree
Neutral
Agree
19.45%
Strongly Agree
24.03%
37.3%
Chart no. 5.14 shows that majority of the respondents reported that digital
advertisements have little impact on their buying decision. Research shows that
respondents see digital advertisements but impact on buying decision due to digital
advertisement is less.
28
Table no. 5.19- Digital ad remind me of buying certain things when I am at
work
Valid Cumulative
Frequency Percent Percent Percent
Valid Strongly
Disagree 21 4.8 4.8 4.8
Disagree
56 12.8 12.8 17.6
Neutral
113 25.9 25.9 43.5
Agree 191 43.7 43.7 87.2
Strongly Agree
56 12.8 12.8 100.0
Total 437 100.0 100.0
Strongly Disagree
Disagree
Neutral
4.81%
12.81% Agree
12.81% Strongly Agree
25.86%
43.71%
More than 55% of respondents think that digital advertisements remind them of
buying certain things. This signifies that digital advertisements have role in
influencing purchase decision; however it is not certain that if respondents buy
those products online.
29
Table no. 5.20- Digital ads are more appealing
[Digital
Chart no. 5.16- Digital ads ads are
are more more appealing]
appealing
Strongly Disagree
Disagree
Neutral
3.2%
16.25% 11.21% Agree
Strongly Agree
30.66%
38.67%
Chart 5.16 shows that, more than 54% respondents feel that the digital
advertisements are more appealing compared to traditional print and other media
advertisements. This indicates that people get attracted towards digital
advertisement more quickly and easily.
30
Table no. 5.21- Digital ads often offer comprehensive information
Valid Cumulative
Frequency Percent Percent Percent
Valid Strongly
Disagree 7 1.6 1.6 1.6
Disagree
63 14.4 14.4 16.0
Neutral
127 29.1 29.1 45.1
Agree
170 38.9 38.9 84.0
Strongly Agree 70 16.0 16.0 100.0
Total 437 100.0 100.0
[Digital
Chart no. 5.17- Digitalads
adsoften
oftenoffer
offercomprehensive
comprehensiveinformation]
information
Strongly Disagree
Disagree
1.6% Neutral
16.02% Agree
14.42%
Strongly Agree
29.06%
38.9%
Chart 5.17 indicated that more than half of the respondents perceive that the digital
advertisements offer more comprehensive information than traditional
advertisements. This is an indication that digital advertisements can be used
effectively for making consumers aware of something. Therefore it can be
interpreted that digital advertisements can be used for brand building.
31
Table no. 5.22- Digital Advertisements are often relevant to me
Valid Cumulative
Frequency Percent Percent Percent
Valid Strongly
28 6.4 6.4 6.4
Disagree
Disagree 49 11.2 11.2 17.6
Neutral 155 35.5 35.5 53.1
Agree 128 29.3 29.3 82.4
Strongly Agree 77 17.6 17.6 100.0
Total 437 100.0 100.0
Strongly Disagree
Disagree
Neutral
6.41%
Agree
17.62%
11.21% Strongly Agree
29.29%
35.47%
Chart no. 5.18 shows that more than 47% of the respondents often feel that digital
advertisements are relevant to them. However it should also be noted that 35% of
the respondents have no firm opinion about relevancy of the digital advertisements
to them. Here marketers need to take the point and should design their digital
advertisement more effective by exposing it to relevant consumers. Statistical and
psychological intelligence tools used by various e-commerce promotional platforms
will work effectively on relevance of digital advertisements to particular consumers.
32
5.5.7- Frequencies for Subscale- Influence of Digital Marketing
Channels
In this subscale respondents were asked to give their preference to different digital
marketing channels which they think have influences on their online purchases.
Digital marketing channels are most important and effective way of digital
marketing communication between consumers and e-commerce business marketers.
The frequencies of responses are given in following tables and represented by the
charts.
8.01%
6.41%
27.23%
33
From chart no. 5.19 it can be observed that almost 60% of respondents think that
search engines have influence on their online purchases. Search engine provides
personalise and comparative information to consumers which can influence buying
decision of e-commerce consumers.
Mobile Advertising
Chart no. 5.20- Influence of Mobile Advertisement
Highly Un-influencing
Un-influencing
Neutral
4.81% 9.61%
Influencing
Highly Influencing
19.22%
37.3%
29.06%
Chart no. 5.20 shows that only 4.8% of respondents think that Mobile Phone
advertisements influence their decision of buying online; whereas 37% of
respondents feel that it does influence their online buying decision. 29% of
34
respondents feel that Mobile advertisement has neutral effect on their online
buying. Research study shows that mobile advertisement channel is useful for
information but have less impact on buying decision of e-commerce consumers.
Highly Un-influencing
Un-influencing
1.6% Neutral
12.81% Influencing
Highly Influencing
24.03%
17.85%
43.71%
Only 30% of respondents feel that they get influenced by email advertisements
whereas almost 26% of respondents do not get influenced by the same. It should be
noted that large proportion of respondents (43% to be specific) reported that e-mail
advertisement has neutral influence on online buying decision of e-commerce
consumers.
35
Table no. 5.26- Influence of Social Media
Highly Un-influencing
Un-influencing
1.6% Neutral
Influencing
14.42%
20.82% Highly Influencing
22.88%
40.27%
Not to get surprised that more than 60% of respondents feel that they get influenced
by social media channel when it comes to buying online. Social media is most used
channel of digital marketing and it has been analysed from this study that is useful
to get information of products and services to consumers and also plays important
role to influence buying decision of e-commerce consumers.
36
Table no. 5.27- Influence of Direct e-commerce website/ Application
Direct e-commerce
Chart no. 5.23- Influence website/ Application
of Direct e-commerce website/ Application
Highly Un-influencing
Un-influencing
1.6% Neutral
12.81% Influencing
20.82% Highly Influencing
20.82%
43.94%
Chart no. 5.23 shows that advertisements displayed on mobile app or website of e-
commerce influence online buying decision of more than 64% of respondents. The
study results that advertisement on direct e-commerce website or e-commerce web
application are the most influencing factor for e-commerce consumers. Research
study come up with the major finding that the e-commerce website and mobile
applications providing information of product and services and directly connect
with e-commerce consumers have most influencing impact on e-commerce buying
decision.
37
Table no. 5.28- Influence of Digital Display
Highly Un-influencing
Un-influencing
Neutral
4.81% Influencing
6.41% Highly Influencing
22.43%
25.63%
40.73%
Surprisingly more than 63% of respondents feel that digital displays placed in
Shopping malls, Parks, Air ports, Railway, Multimedia Advertising vehicles,
stations restaurants etc. influence their online buying decisions. A display ad
reaches to target customers because of its features of high visibility, safe
environment and creates brand value.
Chart no. 5.25- How much satisfied are you with the products/ services you
How much satisfied are you with the products/ services you bought through
bought through E-commerce digital channels
Highly Unsatisfied
Unsatisfied
Neutral
4.81%
8.01% Satisfied
19.22%
Highly Satisfied
34.1%
33.87%
Chart no. 5.25 shows that more than half of the respondents are satisfied with the e-
commerce platform they had bought things from. 34% of respondents are neither
satisfied nor dissatisfied with their experience with e-commerce.
It means based on the result from this research study response shows that more e-
commerce consumers are satisfied with e-commerce buying experience. High
satisfaction level of consumers retain and increasing rebuying of products or
services and helps to exceed marketing goals.
39
5.7- Demographic Profile of the Respondents
40
Age
Chart no. 5.26 Age of respondents
14.42%
24.94%
24.26%
The age group of respondents were included college students less than 20 years and
the no of respondents are 70 out of total respondents 437. The respondents of age
group between 21 to 30 years are 63 out of total 437 respondents.
The more no of respondents are from the age group of 31 to 40 and 41 to 50 are 106
and 109 respectively. No. of respondents above 51 years are 89 in no‟s.
Chart no. 5.26 shows that age group 21-30 years comprise minimum proportion in
all samples. Age groups 31-40 and 41-50 years include similar proportions. Age
group above 50 years is also sizeable proportion of 20.37 percent.
This study represents the participation from almost all age groups considering the
capacity of buying online products and these are the regular or at least occasional e-
commerce consumers. Research study shows that age variation doesn‟t have any
impact on online shopping or using e-commerce services as our target population is
e-commerce consumers, those they may be using technology gazettes and internet
regularly or at least for online shopping. Response to e-commerce business is
almost from all age group is same.
41
Chart no. 5.27- Gender of respondentsGender
Female
Male
30.66%
69.34%
Chart no. 5.27 shows that the male respondents are 303 in no‟s with 69.34%
participation and the female participants are 134 no‟s and 30.66% out of total 437
respondents taken for final study. Study shows that male forms larger proportion in
the responses. The male participants were easily ready to share personal and
shopping experience compared to female respondents. It resulted in to more
participation of male respondents in study.
42
The Table no 5.30-a, shows that Up to 10th pass and PhD respondents are less in
no‟s were coincidently same as 7 each. Considerable no. of respondents is from
graduates 148 and post graduates are 226 out of 437 respondents. The respondents
from 10+2 and diploma holders are 35 and 14 no‟s respectively. The research study
assumes that respondents educational background have marginal impact on e-
commerce buying.
Education
Chart no. 5.28- Education of respondents
Upto 10th
10+2
1.6% 8.01% Diploma
Graduate
1.6% 3.2%
Post Graduate
PhD
51.72%
33.87%
Chart 5.28, shows that more than 50% of respondents belong to „post-graduate
education‟ group and followed by graduates 33.87%.
43
Occupation
Chart no. 5.29- Occupation of respondents
Student
Salaried
3.2%
Self-employed
3.2%
Business
51.72%
More than 50% of the respondents are salaried and only 3.2% of respondents are
home maker. Students are 28.83% and self-employed respondents are 13.04.
Researcher found that salaried people have financial capacity to buy as it is most
important factor in marketing process. And the same time most influential factor in
case of salaried persons is e-buying saves time and price comparison enable them
and motivate to buy. Researcher found that buying behaviour of salaried person
from this study impact on e-buying.
44
Income
Chart no. 5.30- Income level of respondents
1-3 lakh
3-5 lakh
5-7 lakh
14.42% 7-10 lakh
More than 10 lakh
32.04%
16.02%
16.48%
21.05%
Chart no. 5.30 found that the income level of 1-3 lakh makes the larger group of
respondents with 140 no‟s out of 437 and its 32% of total respondent‟s.
The respondents from level of 5-7 lakh income groups are 92 in no‟s and the
percentage is 16% of total respondents.
Respondents whose income is above 10 lakh are 14% of the total responses.
Surprisingly researcher found that the income level of respondents also have a very
less impact on e-commerce buying of consumers. It results that there is a good
response from all income group categories for e-commerce buying. It is an
exception for consumer buying behaviour as the income level of consumers
influence the buying decision of consumers in most of the time.
45
5.8 Descriptive Statistics
From descriptive statistics it is observed that time saving and attractive offers make
people buy from online (Mean higher than 4 on a scale of 5). It was also found that
respondent do not avoid to visit shops. But when standard deviations of items were
observed it was understood that the responses are widely distributed around the
mean values.
46
Table no. 5.32 Descriptive Statistics- Attitude towards Digital Marketing
[Digital ad remind me
of buying certain
things when I am at
437 1.00 5.00 3.4691 1.02585
work]
[Digital
Advertisements are
often relevant to me] 437 1.00 5.00 3.4050 1.09765
Digital advertisements are more appealing and Digital Advertisements often offer
comprehensive information have been found to receive highest mean values.
Overall Mean of this subscale (3.40) suggests that overall attitude of consumers
towards digital advertisements is favourable.
Research study reveals that digital ads remind to buy certain items, ads are more
appealing than traditional ads, and ads are more informative and often relevant. The
impact of digital ads on purchase decision is not very less but below (3.04) the
overall average mean.
47
Table no. 5.33 Descriptive Statistics- Influence of Digital Marketing Channels
Descriptive statistics show that direct e-commerce website/ mobile application has
highest influence on e-buying. Mobile advertisement has less influence compared to
other digital marketing channels. Overall mean of subscale suggests that all digital
marketing channels have fair influence on e-buying.
Mean value 3.54 indicates that consumers are satisfied with the e-commerce in
general.
48
5.9 Statistical Analysis-
Sum of Mean
df F Sig.
Squares Square
Since the p value of F test (F 3, .824=.481) is not less than .05 there is no significant
relationship between age and reasons for shopping through e-commerce.
49
5.10 Hypothesis Testing
5.10.1 HYPOTHESIS-I
H0: The attitude towards digital advertisements and satisfaction with the product/
service bought online are not significantly related.
H1: The attitude towards digital advertisements and satisfaction with the product/
service bought online are significantly related.
To test this hypothesis One- way ANOVA is used. The results are shown in table
no. 5.36.
Sum of Mean
Squares df Square F Sig.
[Digital ads make me Between Groups 135.611 4 33.903 37.605 .000
purchase the product] Within Groups 389.474 432 .902
Total 525.085 436
[Digital ad remind me of Between Groups 34.942 4 8.736 8.903 .000
buying certain things Within Groups
when I am at work] 423.891 432 .981
Total 458.833 436
[Digital ads are more Between Groups 18.485 4 4.621 4.820 .001
appealing] Within Groups 414.216 432 .959
Total 432.700 436
[Digital ads often offer Between Groups 79.664 4 19.916 25.523 .000
comprehensive Within Groups 337.104 432 .780
information]
Total
416.769 436
[Digital Advertisements Between Groups 16.297 4 4.074 3.458 .009
are often relevant to me] Within Groups 509.012 432 1.178
Total 525.309 436
From table no.5.36 it is observed that the significant value of F test is less than .05
(p<.05). This indicates that the value of F test fall in rejection zone and thus we
reject null hypothesis H0 „The attitude towards digital advertisements and
satisfaction with the product/service bought online are not significantly related‟.
50
Therefore we accept H1. This means that as the attitude of consumer changes their
satisfaction level with the product/ service bought online also changes.
It can be interpreted that the satisfaction is somehow is also related with the
attitude toward digital marketing. Further research is required to explore this
relationship and to investigate as to how attitude towards digital marketing affects
the satisfaction with online bought product or service.
5.10.2 HYPOTHESIS-II.
Sub Hypothesis:
H0d: Social Media Channel does not significantly influence frequency of e-buying
H1d: Social Media Channel significantly influence frequency of e-buying
51
To test these hypotheses Pearson Correlation test is used. The result is shown in
table no. 5.37.
Direct e-
How commerc
often do Mobil e
you buy e website/
products Search Adver E- Social Applicati Digital
online? Engine tising mail Media on Display
Ho Pearso
w n
ofte Correla
n do tion
you
buy
prod 1 .284(**) .026 .046 .223(**) .373(**) .369(**)
ucts
onli
ne?
Sig. (2-
.000 .593 .335 .000 .000 .000
tailed)
N 437 437 437 437 437 437 437
N 437 437 437 437 437 437 437
**Correlation is significant at the 0.01 level (2-tailed).
From Significant values of the test it is found that Search engine, Social media, e-
commerce website/ mobile application and digital display have significant positive
effect on frequency of e-buying. All values of Pearson Correlation (for above
mentioned channels) range from .223 to .369. These values indicate low positive
correlation; however the correlation is statistically significant and not by just
chance. Therefore we fail to accept Null Hypothesis, H0: Digital Marketing
Channels do not significantly influence frequency of e-buying.
52
The Null Hypothesis statements consequently regarding Digital Marketing
Channels; Search engine does not significantly influence frequency of e-buying,
Mobile advertisement does not significantly influence frequency of e-buying, E-
mail channel does not significantly influence frequency of e-buying, Social Media
Channel does not significantly influence frequency of e-buying, E-commerce
website/ Application does not significantly influence frequency of e-buying and
Digital display does not significantly influence frequency of e-buying are not
accepted.
Accordingly hypothesis H1a, H1b, H1c, H1d, H1e and H1f are accepted.
Thus the digital marketing channels like Search engine, Mobile Advertisement,
E-mail, Social Media, Direct e-commerce website/application and Digital
Display significantly influence frequency of e-buying.
5.10.3 HYPOTHESIS-III
Pearson correlation test is used to test this hypothesis. Table 4.38 shows the results
of the test.
Table no. 5.38 Correlations- Clicking/ Following digital advertisement*
frequency of e-buying
53
** Correlation is significant at the 0.01 level (2-tailed).
The result shows that the correlation is significant since the p value is less than .05.
It was found that the correlation is positive.
There for we fail to accept null hypothesis H0: Clicking/ Following digital
advertisement (on internet/ smart phone) is not significantly correlated with the
frequency of e-buying.
5.10.4 HYPOTHESIS-IV
H0: Frequency of using internet and e-buying frequency are not significantly related
H1: Frequency of using internet and e-buying frequency are significantly related
One way ANOVA test is used to check if the means of these two variables differ
significantly. Table 4.39 shows the result of one way ANOVA.
Sum of Mean
Squares df Square F Sig.
Between
Groups 45.027 3 15.009 11.436 .000
Within Groups
568.282 433 1.312
Total
613.309 436
Significant value of F test shows (p<.05) that there is significant relationship exists
between frequency of using internet and e-buying behaviour.
Therefore we fail to accept null hypothesis H0: Frequency of using internet and e-
buying frequency are not significantly related. Thus we accept alternate hypothesis
54
H1 is accepted. In other words “Frequency of using internet and e-buying frequency
are significantly related”.
This means that there exists a significant relationship between frequency of using
internet and e-buying frequency. However this does not shows the strength and
direction of the relationships. It requires further inquiry into the relationship.
5.11 Conclusion:
This chapter analysed the data which was collected through structured
questionnaire. The responses were coded in SPSS for analysis purpose. Parametric
test were used for testing hypotheses. This chapter helped in formulating findings of
the study. Findings and discussions are given in subsequent chapter in detail.
55
CHAPTER NO: 6
6.1 Observations
1
CHAPTER NO: 6
6.1 Observations:
1) Researcher observed that every time new marketing changes are happening but
this time it’s different, this time it’s not only rules have been changed but customers
themselves discovered the new framework of marketing.
3) Researcher observed from literature review that growth rate of social media in
developing countries is more compare to developed countries.
5) Researcher observed that the most influencing e-buying factors came to know
from this study are it ‘saves time’ and ‘sales offers’. The marketers can consider
these factors while finalizing digital marketing strategies.
6) Researcher observed that significant value of age is .481 is not less than .05;
hence there is no significant relationship between age and reasons for shopping
online.
7) Researcher observed that use of e-commerce is most frequent for buying services
than products as most e-buying 44% flight/railway/bus/air tickets and 29% movie
and concert tickets.
8) App market: Mobile owners prefer shifting towards apps compare to browse.
9) Research also observed that more respondents belong to Post graduate education
group. Digital ad must be focused to educated consumers.
2
10) Researcher observed that more than 50% respondents are more from salaried
and less respondents from home maker group.
11) Researcher observed that income level of 1-3 lakh has the larger group of
respondents.
12) Researcher observed that more than 50% of respondents belong to ‘post-
graduate education’ group.
13) Researcher observed that male respondents are more as they are ready to
provide information easily, it doesn’t mean that male e-commerce buyers are more
compare to female e-buyers.
1) Researcher found that almost 53% consumers are satisfied with online buying.
The attitude of e-commerce consumer changes their satisfaction level with the
product/ service bought online also changes. It can be interpreted that the
satisfaction is somehow is also related with the attitude toward digital marketing.
There is a significant relationship with attitude towards digital advertisement and
satisfaction level of e-buyers.
2) Researcher found that 60% e-buyers get influenced to buy online. It found
significant positive effect of digital marketing channels on frequency of e-buying.
5) Researcher found that digital advertisements are more appealing and digital
advertisements often offer comprehensive information have been found to receive
highest mean values.
3
6) Research found that 64% respondents reported that direct e-commerce website/
mobile application has highest influence on e-buying.
7) All digital marketing channels have fair influence on e-buying. It was found that
different digital marketing channels have different impact on attitude of consumers
towards digital marketing. Therefore each channel must be used cautiously
according to product/services and audience type.
8) Researcher found that mobile advertisement and email has less influence on e-
buying compared to other digital marketing channels.
10) Researcher found that Consumers are convenient to buy online it doesn’t mean
they avoid visiting shops. Offline reputation must be maintained.
12) Researcher found that the ‘p’ value of F test (F 3, .824=.481) is not less than .05
there is no significant relationship between age and reasons for shopping through e-
commerce.
4
3) Researcher found that more than 50% of respondents do not avoid visiting
shops. So if people prefer online buying that does not mean, people do not
buy from shops or do not visit shops.
4) Researcher found that more than 50% of respondents agree that extensive
information is available on e-commerce platform. Information of product
and services available on e-commerce platform helps to engage consumers
and helps to buy.
5) Respondents agree and study found that extensive information is available
on e-commerce platform.
6) Researcher found that consumers can easily check reviews of the product
they likely to buy, as more than 50% respondents agrees that they can check
reviews easily for the products which they want to buy.
7) Researcher found that almost 60% of respondents prefer to buy from online
only because particular products are available only to be bought online.
8) Researcher found that more than 50% of respondents found it
convenient/service to shop online. This is favorable for e-commerce.
9) Researcher found that more than 65% of respondents agree that price
comparison is easy in e-commerce (shopping online).
10) Researcher found that almost 75% of respondents reported that online
shopping saves time and thus it can be considered as most influencing
reason for shopping online.
11) Researcher found that 65% of respondents find sales offers attractive on e-
commerce platform as compared with the traditional retail shops; it is also
another influencing reason for online shopping.
12) Researcher based on study results interpreted that use of e-commerce is
most frequent for buying services than products.
13) Researcher found that Digital advertising have little impact on buying
decision but it also interpret that it helps to remind them for buying certain
things.
14) Researcher found that digital advertisements are more appealing compared
to traditional print and other media advertisements. This indicates that
people get attracted towards digital advertisement more quickly and easily.
5
15) Researcher found that Digital ads have comprehensive information. This is
an indication that digital advertisements can be used effectively for making
consumers aware of something.
16) Researcher based on findings interpreted that digital advertisements have
little impact on their buying decision and digital advertisements can be used
for brand building.
17) Researcher found that digital advertisements are often relevant to e-
commerce consumers.
18) Researcher found that more than 62% of respondents feel that digital
displays placed in shopping malls, Air ports, Railway stations, Parks,
restaurants etc. influence their online buying decisions.
19) Researcher also found that e-mail advertisement has neutral influence on
buying decision.
20) Researcher found that e-commerce consumers get influenced by social
media channel when it comes to buying online.
21) Researcher also found that advertisements displayed on website of e-
commerce influence online buying decision.
22) Researcher found that respondents are satisfied with the e-commerce
platform they had bought things from.
23) Researcher found that mean value 3.54 indicates that consumers are satisfied
with the e-commerce in general.
24) Researcher found that all age group have almost equal impact of digital
marketing and response to e-commerce but age groups 31-40 and 41-50
have same and little bit more response. It indicates that buying behavior
doesn’t change according to age in e-commerce consumers.
25) Researcher found that more than half of the respondents are satisfied with
the e-commerce platform they had bought things from. 34% of respondents
are neither satisfied nor dissatisfied with their experience with e-commerce.
6
CHAPTER NO:7
SUGGESATIONS AND
RECOMENDATIONS
7.1 SUGGESATIONS
7.2 RECOMENDATIONS
1
CHAPTER NO: 7
The Researcher after detailed analysis and findings from study were able to come
up with useful suggestions for e-commerce consumers, Marketers and government
organization. The analysis and findings of this study gives many insights to
researcher in the area of digital marketing in e-commerce business. These are the
suggestions and recommendations proposed by researcher based on overall study.
These suggestions must be useful to marketers to use or increase result of digital
marketing strategies to increase revenue and most useful to government to provide
citizen centric services and to increase efficiency of work through effective digital
communication strategies.
7.1 SUGGESATIONS:
SUGGESATIONS TO MARKETERS:
2
6) Research shows that most of the people are using internet daily, multiple
times in a day, 4-6 times in a week it means there is a scope for any business
to make a strong presence online.
7) Researcher based on research study suggests that use of ‘Digital Marketing’
strategies will not increase only e-commerce business but also helps to
increase store traffic as well.
8) Overall attitude of consumers towards digital advertisements is favorable.
Accordingly researcher suggests that there is an opportunity for e-commerce
businesses to increase sale by using digital advertisement.
9) Researcher suggests most important factor that people are buying online it
doesn’t mean they avoid visiting shops. Offline reputation must be
maintained.
10) Researcher based on study suggests that salaried people are more in
percentage to buy online. Accordingly targeting this segment will give more
mileage to reach to potential customers.
11) Researcher suggests based on findings of study that all digital marketing
channels have equally good influence on e-buying but direct e-commerce
website/app, digital display and social media channels have more influence
on e-buying.
12) Researcher found that consumers are using e-commerce most frequently for
buying Flight/Rail/bus tickets, movie/ concert tickets, apparels and
electronic items. Researcher suggests that these areas have good scope for e-
commerce business.
13) Use of internet is increasing for information search. Therefore e-commerce
should grab this opportunity to promote their products. However appropriate
care should be taken as it was found that the number of clicks on an
advertisement does not ensure frequent buying. It was found that those who
clicked on advertisement more often have bought products/ services online
less often. Therefore choice of digital marketing channel and content of
advertisements should be appropriate and appealing to consumers.
14) Researcher suggests that digital technology enabled communication is very
sensitive and available on fingertips to move it in a positive direction 24
hours monitoring is required.
3
15) Researcher suggests based on study that once you adopt digital
communication platforms then consistency is must.
16) Researcher also suggested that only experts can make it more successful so
that dependency on professional staff or professional agency is mandatory at
least in present scenario.
17) Researcher suggests that marketers need to make use of digital
advertisements more effective by identifying target groups particularly.
18) Same time don’t rely fully for sale on email marketing and mobile
marketing as buying frequency is less but positive impact for branding and
reminder to buy online.
19) To keep in mind e-commerce in service sector is more preferred by e-buyers
in present scenario.
4
7.2 RECOMENDATIONS:
RECOMENDATIONS TO MARKETERS:
5
CHAPTER NO:8
CONCLUSIONS AND
FURTHER SCOPE OF THE
STUDY
8.1 Conclusion
8.2 Scope for future research studies
1
CHAPTER NO: 8
CONCLUSIONS AND FURTHER SCOPE OF THE STUDY
8.1 Conclusion:
The researcher came to the conclusion after study as:
2
After the regrows literature review, study analysis and finding the conclusive
statement is „digital marketing‟s channels have impact on influencing e-buying, re-
buying, increasing store traffic, reminding consumers whenever they want to buy,
branding, promotion, advertising and feedback.
Research study interpreted that use of e-commerce is most frequent for buying
services than products. Not to get surprised that more than 60% of respondents feel
that they get influenced by social media channel when it comes to buying online it
shows long term benefits apart from routine push. Artificial intelligence by using
technology to target and micro target interest group and the most important to send
personalized promotional advertisement is a unique feature of digital marketing
used in search engine and social media platforms.
The basics of Digital Marketing are “Learning of digital marketing is useless if you
don‟t apply” Ravi Khedkar.
1) The responses collected are intentions of consumers and are not actual
behavior. Intentions may or may not lead to behavior. Therefore findings
may not be generalized.
2) Experimental research design would give better insights into this context.
3) E-commerce companies and Digital marketing agencies were not ready to
share their data as its most confidential part of their business.
4) Study is limited to e-buyers in Pune region as it may vary in another city or
rural area.
5) Further study includes e-commerce in general. The future studies should
focus on particular e-commerce marketers.
6) Research study found that Mobile advertising and email have no significant
relation with frequency of e-buying it has a scope for further study to get
more insight on it.
7) Further research is required to explore this relationship and to investigate as
to how attitude towards digital marketing affects the satisfaction with online
bought product or service.
3
APPENDICES:
APPENDIX-I
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15
“A STUDY OF THE IMPACT OF „DIGITAL
MARKETING‟ ON E-COMMERCE BUSINESS”
Submitted by
Ravindra Khedkar
Research Centre
May-2019
CHAPTER NO:8
CONCLUSIONS AND
FURTHER SCOPE OF THE
STUDY
8.1 Conclusion
8.2 Scope for future research studies
1
CHAPTER NO: 8
CONCLUSIONS AND FURTHER SCOPE OF THE STUDY
8.1 Conclusion:
The researcher came to the conclusion after study as:
2
After the regrows literature review, study analysis and finding the conclusive
statement is „digital marketing‟s channels have impact on influencing e-buying, re-
buying, increasing store traffic, reminding consumers whenever they want to buy,
branding, promotion, advertising and feedback.
Research study interpreted that use of e-commerce is most frequent for buying
services than products. Not to get surprised that more than 60% of respondents feel
that they get influenced by social media channel when it comes to buying online it
shows long term benefits apart from routine push. Artificial intelligence by using
technology to target and micro target interest group and the most important to send
personalized promotional advertisement is a unique feature of digital marketing
used in search engine and social media platforms.
The basics of Digital Marketing are “Learning of digital marketing is useless if you
don‟t apply” Ravi Khedkar.
1) The responses collected are intentions of consumers and are not actual
behavior. Intentions may or may not lead to behavior. Therefore findings
may not be generalized.
2) Experimental research design would give better insights into this context.
3) E-commerce companies and Digital marketing agencies were not ready to
share their data as its most confidential part of their business.
4) Study is limited to e-buyers in Pune region as it may vary in another city or
rural area.
5) Further study includes e-commerce in general. The future studies should
focus on particular e-commerce marketers.
6) Research study found that Mobile advertising and email have no significant
relation with frequency of e-buying it has a scope for further study to get
more insight on it.
7) Further research is required to explore this relationship and to investigate as
to how attitude towards digital marketing affects the satisfaction with online
bought product or service.