Research Project 1-1
Research Project 1-1
Research Project 1-1
We are using this opportunity to express our gratitude to everyone who supported us throughout
the course of this MBA Project. We are thankful for their aspiring guidance, invaluably
constructive criticism and friendly advices during the Entire creation of the project.
Our Sincere Thanks to Dr.Neeru Gupta under whose guidance and kind cooperation we are able
to complete the Project work entitled “IMPACT OF DIGITAL MARKETING ON
CONSUMER BEHAVIOUR”.
Finally, we take this opportunity to thank our parents, Friends and well-wishers without whom
this effort would be pathless.
Regards,
HarshitaAgarwal
TanujSagar
Akanksha Malik
Swati Sinha
Umang Mittal
EXECUTIVE SUMMARY
This project was written after getting an experience from Digital Marketing. The title for the
research is “Impact of Digital Marketing on Consumer Behavior”. This project explains about
digital marketing, its importance, buying behavior of a consumer and various channels available
for digital marketing. This project also explains about digital marketing scenario in India. We
have done this research using an online questionnaire and find out that how digital marketing
change buying behavior of consumers. Consumers are information seeker and they collect
information before buying any product. The presentation tools use for this research is pie charts
and bar graphs. Advertisements also have great influence on consumers and many people buy
their products through online. The main objective of this research is to find out how much
customers know about digital marketing and factors influencing changing buying behavior of
consumers. More details about findings are given in this project.
Table of Contents
Chapter-1:INTRODUCTION...................................................................................................... 1
1.1 OBJECTIVE OF THE STUDY ....................................................................................... 1
1.2 Buying Behavior of Youth ............................................................................................... 3
1.3 DIGITAL MARKETING SCENARIO IN INDIA .......................................................... 4
1.4 PORTER’S FIVE MODEL ANALYSIS OF DIGITAL MARKETING INDUSTRY.... 5
1.5 ADVANTAGES OF DIGITAL MARKETING .............................................................. 6
1.6 DIGITAL STRATEGY .................................................................................................... 7
Chapter-2: REVIEW OF LITERATURE .................................................................................. 8
Chapter-3: RESEACH METHODOLOGY ............................................................................. 11
3.1 RESEARCH METHODOLOGY ................................................................................... 12
3.1.1 TOPIC ..................................................................................................................... 12
3.1.2 UNIVERSE ............................................................................................................. 12
3.1.3 SAMPLE ................................................................................................................. 12
3.1.4 SAMPLE SIZE ....................................................................................................... 12
3.1.5 TOOLS .................................................................................................................... 12
3.1.6 DATA COLLECTION FOR THIS STUDY .......................................................... 13
3.1.7 PRESENTATION TOOLS USED ......................................................................... 13
Chapter-4: DATA ANALYSIS & RESULT ............................................................................. 14
Chapter-5: FINDINGS & CONCLUSION ............................................................................... 25
5.1 FINDINGS ..................................................................................................................... 26
5.2 CONCLUSION .............................................................................................................. 28
LIMITATIONS ........................................................................................................................... 29
BIBLIOGRAPHY ....................................................................................................................... 30
ANNEXURE ................................................................................................................................ 31
Chapter-1:
INTRODUCTION
INTRODUCTION
PRIMARY OBJECTIVE-The objective of this research is that to define the term digital
marketing and consumer purchase behavior, to carry out a literature review on the subject of
consumer purchase behavior and impact of social media, to conduct a primary research with
the help of questionnaires on the impact of social media advertising and consumer purchase
behavior, and to review the findings.
SECONDARY OBJECTIVE
To know how much the customer know about digital marketing before any purchase
To determine kind of media, would terminate the customer
To identify the factors influencing changing buying behavior of youth
To understand post purchase behavior of consumer
1
Digital marketing is defined as buying and selling of goods, services and information via
computer networks or internet or through any communication media. Digital marketing can be
defined to interact with the consumer at any time and in any place, with the purpose of
informing, educating, entertaining or making the consumer aware of the product or services. In
digital marketing, understanding consumer behavior is key for marketing success as consumers
have embraced utilizing the internet and online socializing over a period of time. Digital
marketing has been recently referred as one of the best way to get through the mess and interact
directly with the customers. Hence, with the trend towards direct, face to face marketing,
additional attention is being paid to the use of the digital channels as a means of effectively
advertising to consumers. Consumer behavior is influenced by having the knowledge and being
brand oriented and conscious. With the rise of social media, marketing departments now have
various options available to them for branding their products, such as advertisings, publishing of
brand content online, indulging in social networks and developing engagement opportunities for
consumers to participate with the brand. Brand awareness is coupled with good brand perception
and loyalty result with a stronger brand image in consumer’s mind, which will influence the
consumers positively and becomes part of their purchase behavior on the regular basis.
Consumer purchase behavior is how individuals, organizations, and groups select, buy and make
use of product, service, experience or ideas to satisfy their utility and wants. While considering
digital channels, the mostly used channel is mobile marketing. Indian mobile market is one of the
fastest growing markets due to the increase in the number of consumers, and is forecasted to
attain millions of users in upcoming ten years. The development and widespread use of internet
technologies have transformed the way society communicates both in their daily and professional
life. When we talk about digital marketing, what comes to mind are different online shopping
sites like Amazon, Jabong, Flipkart and different online groceries purchasing sites like Grofers,
Big Basket etc. and different social networking sites like Facebook, Instagram etc.
2
There are various digital marketing channels which are used to reach consumers. It includes
email marketing, online marketing, affiliate marketing, search engine marketing, pay per click
advertising and social media channels.
3
organized retailing can’t reach to rural part of India whereas online retailers are finding their
buyers in cities including villages of across India.
India is the world's third biggest web populace. Individuals in India are mindful of web as well
as are utilizing it for different purposes. There's a blasting web showcasing industry in India.
Web-based social networking is the driving the selection of computerized showcasing. The retail
segment in India is blasting both on the web and disconnected. Internet based life is driving the
advancement of computerized showcasing. Progressively well off populaces of youthful web
clients are investing more energy and cash on the web and in doing as such are affecting
shopping patterns. Among the mainstream items online are dress frill, books, purchaser gadgets,
voyaging, money related administrations, attire and excellence care. Web based shopping
4
movement is packed in major urban states with Mumbai being the primary Center pursued by
Delhi and Kolkata and now the majority of the states in India.
Threats of
New Entry
Bargaining Rivalry by
Threats of
power of exixting
substitutes
suppliers competitors
Bargaining
power of
buyers
5
Buyer are the clients of agencies, basically buyers are high idea seekers
Clients like long term relationships with agencies, so they also try to adjust with
agencies
Clients can ask agencies to change pattern of campaigns at any time
Clients will choose agencies which have good experience in industry
4. Threats of substitutes
No. of substitutes is high, substitutes include Print media, TV and Radio
Substitutes are too popular among buyers and had high demand in past years
Media consumption through radio is increasing now
5. Rivalry by existing competitors
Existing competitors have high profile clients and clients loyal toward them
Most of the traditional agencies are now concentrating in digital marketing
Existing firms in the Industry are creating variety and unique campaign for clients
Reach- The geographical reach of online medium is greater than that of traditional
media. It is cost effective and ads can also be targeted to the desired audience.
2 Lower cost- A properly planned and effectively targeted digital marketing campaign can
reach the right customers at a much lower cost.
3 Measurement- Measuring your online marketing with web analytics and other online metric
tools makes it easier to establish how effective your campaign has been. Web analytics can
be set up to show you exactly how much money you make from each digital tactic.
4 Easy to share-Most digital marketing channels feature sharing capabilities which allow
campaigns and articles to be shared with multiple followers. This helps to create a multiplier
effect and has the capacity to tremendously improve sales results.
5 Openness- - By getting involved with digital marketing and managing it carefully, you can
build customer loyalty and create a reputation for being easy to engage with.
6
1.6 DIGITAL STRATEGY
It is the process of specifying an organization’s vision, goals and opportunities in order to
maximize business benefits through digital media. Strategy will be different for each brand.
Strategy can be short term or long term. Types of digital marketing strategy will be pull and
push marketing strategy.
In push digital marketing, the marketer sends a message without the recipient actively
seeking the content, such as display advertising on websites and news blogs. Email, text
messaging and web feeds with customized contents can also be classified as push digital
marketing. Push marketing allows targeting demographics and using marketing dollars to
promote a product to the people who are interested in what marketers have to sell. Behavior
targeting is good example for push digital marketing.
In pull digital marketing includes blogging, email marketing, social media, info graphics
and other forms of visual messaging and search engine optimization. A pull marketing
campaign also includes public relations or other ways of reaching out to potential or already
realized customers who you want to keep engaged. Pull marketing also requires a greater
investment in time, but it gives you more ability to entertain your customers and educate
them about your company.
There are different types of ads which are used for marketing a product:
BannerAds: Embedding an ad into a web page- known as click through due to
interactive actions where the consumers clicks and is taken to the banner ad’s company
websites.
Pop-up: Ads that displays in a browser window either in the front or behind the current
browser window.
Above the fold: It refers to banners ads which are displayed at the top of web page.
Rich media: Online ads that contain motion, sounds or video are termed as rich media
ads.
7
Chapter-2:
REVIEW OF
LITERATURE
8
The literature review explained in detail the impact of digital marketing on consumer
decisionmaking.
9
9. According to research by Malik et al. (2013), advertisements empowers brand
awareness. Inturn, brand awareness coupled with good brand perception and loyalty
results in a stronger brand image in the minds of the consumer, which influences
them positively and becomes part of their buying behavior.
10. Research undertaken by MeeraandGayathiri (2015) found that consumer expectations
of interactive visual experiences such as moving images and clickable videos have
increased, which allows the consumer to learn about products.
11. Powersetal’s (2012) research findings also indicate that consumers use social media
to gather information about potential purchasers and to introduce them to new
products, and can also cause them to have a mind-set change about a brand.
12. PriyankaMehra (2009) in her article mentions that youth have always been a main
target for marketers. More so in India now, as two-thirds of the population is below 35
years of age. According to MindShare Insights, the research divisions of a media buying
agency MindShare, 65%, or over 700 million Indians, are younger than 35 years. This
segment has an influence on consumer spending far in excess of its numerical strength.
13. Elisabetaloanals et al., (2014) studied the impact of social media on consumer behavior
with 116 respondents through structured questionnaire. His findings revealed that social
media has impact on changes in consumer behavior.
14. Antoine camarre et al.,(2012) discussed in his article about the future direction of mobile
marketing in various areas. He discussed that mobile marketing can increase value for
both consumers and retailers.
15. SadiaAfzal et al.,(2015) discussed the impact of online advertisements on consumer
buying behavior of branded garments. Results revealed that quality, design, content of
advertisement, loyalty of consumer towards brand and previous buying experience of
consumer are Important factors that influences consumer behavior.
16. Fusun CIZMECI et al., (2015) investigated the impact of digital marketing tools on brand
awareness generation among housing companies. Under this study, conclusions were
drawn for usage of trends in digital marketing.
10
Chapter-3:
RESEARCH
METHODOLOGY
11
3.1 RESEARCH METHODOLOGY
3.1.1 TOPIC
The selected topic for the research is “Impact of Digital Marketing on Consumer Behavior”
3.1.2 UNIVERSE
3.1.3 SAMPLE
Sample means divide whole universe into small population. Sample for this research are young
Indians. It includes people between the age of 17 to 40 years and who have the knowledge of
online purchasing.
The number of items selected from the universe to represent the universe is called size of the
sample. It was not feasible to cover all the customers. For this study, a total of 102 respondents
were approached.
3.1.5 TOOLS
Tools used for this research is an online questionnaire, which was having a total of 19 questions.
12
3.1.6 DATA COLLECTION FOR THIS STUDY
For the study, both primary and secondary data were collected. For primary data, a questionnaire
was developed and administered to the respondents who do online trading.
For secondary data, existing literature in form of journals, magazines, papers, book, web sources
were consulted.
Primary Sources
To collect primary data, multiple-choice questionnaire was prepared and was administered to the
sample of respondents selected for the study. The questions asked to the respondents were
related to their demographic profile, their internet usage, their online trading experience &
satisfaction, their payment mode, security and the overall factors influencing online trading
behavior.
Secondary Sources
Information was collected from secondary sources such as newspapers, business magazines.
Beside these the use of Internet was also made in collecting relevant information.
Presentation tools help a person who wants information about any particular subject by making a
project easily understandable.
13
Chapter-4:
DATA ANALYSIS
&
RESULT
14
Ques1
Interpretation for question 1: Majority of the people purchase product through online. 94.1%
people purchase product through online. There are few people who do not use online purchasing
to purchase their product. There are 5.9% people who do not show any interest to purchase their
product online.
Ques2
15
Ques3
Interpretation for question 2 and 3: 80% of people think that Facebook ads or social media ads
consumes there time and 7.8% of the people are very happy with the services provided by online
vendors, 47.1% of people are just happy, 44.1% of people neither happy nor unhappy and only
1% are unhappy with the services provided by online vendors.
Ques4
16
Ques5
Interpretation for question 4 and 5: 58.8% of people use Amazon to purchase their product,
19.6% uses Flipkart, 17.6% uses Myntra and 4% uses Jabong and 16.7% are strongly satisfied
with the services provided by online site they choose, 59.8% are only satisfied, 21.6% are neither
satisfied nor dissatisfied and there are 2% of people who are dissatisfied.
Ques6
17
Ques7
Interpretation for question 6 and 7: 57.8% of people use cash on delivery to purchase their
product online, 29.4% uses cards, 8.8% uses net banking and 4% uses e-wallets and while doing
online transactions, 52.9% do not face any difficulties, 43.1% of people face difficulties
sometimes and 4% of people face difficulties.
Ques8
18
Ques9
Interpretation for question 8 and 9: 66.7% of people find advertisements influential and
76.5% of people prefer online media, 11.8% of people give preference to T.V., 10.8% prefer
newspapers and rest prefer radio.
Ques10
19
Ques11
Interpretation for question 10 and 11: 48% of people sometimes reads news online, 45.1% of
people reads news online and 6.9% are not interested to read news online and 68.6% people
think that online advertisement change their buying behavior but 31.4% does not think that
online advertisement change their buying behavior.
Ques12
20
Ques13
Interpretation for question 12 and 13: After purchasing product online, 57.8% of people share
good experience with others and after purchasing a product, 51% people sometimes provide
feedback, 22.5% provide feedback and 26.5% are not interested to provide any feedback.
Ques14
21
Ques15
Interpretation for question 14 and 15: 3.9% are highly agree that ads on Facebook, YouTube
are content worthy, 50% are neither agree nor disagree and 9.8% are highly disagree.81.4% of
people feel annoyed with pop-up ads, 15.7% people sometimes feel annoyed and rest do not feel
annoyed with pop-up ads.
Ques16
22
Ques17
Interpretation for question 16 and 17: 17.6% of people are highly agree that online marketing
took over offline marketing and 8.8% of people are highly disagree but majority of people
neither agree nor disagree. 11.8% are highly agreed that people support digital India project, but
majority of people neither agree nor disagree and few people are disagree.
Ques18
23
Ques19
Interpretation for question 18 and 19: 97.1% of people think that online marketing expand
more in future and 94.1% of people think that it helps to grow the Economy but 2.9% does not
agree that it will expand in future and 5.9% does no agree that it helps to grow the Economy.
24
Chapter-5:
FINDINGS
&
CONCLUSION
25
5.1 FINDINGS
This study reveals that most of the people have an idea about digital marketing or know
about digital marketing and most of the people prefer digital channels to buy their
product.
Customers are highly information seeker and they collect information before buying their
products through digital channels and also refer customer’s experience.
Advertisements through online media have high impact on consumers and they have a
high tendency to go for online purchase.
Most of the people find advertisements influential but there are few who does not find it
influential.
Advertisements through online media change the buying behavior of consumers and it
helps the consumers to purchase a product online.
Most of the people read news through online and sometimes they read news through
online portals. It is because of the convenience of time and now a day; youths are very
busy in their work so they read news through online while travelling and through online
news portal, they can get news update very early, and they don’t need to wait for daily
newspapers.
Most of the people are annoyed with the pop-up ads and they also thinks that these ads
consumes their time and people also disagrees that these ads are content worthy.
There are many online vendors who provide various services to online vendors and most
of the consumers are happy with the services provided by them.
There are various site who provide online purchase of various products like Amazon,
Flipkart, Jabong, Myntra etc. and most of the people prefer Amazon to purchase their
product followed by Flipkart, Myntra and Jabong because Amazon provides prime
delivery of a product and they also provide product with less price and people are also
satisfied with the services provided by the site they choose.
The customers are satisfied with products they bought through the digital channels this is
considered as a positive sign for the growth digital channels in customer purchase
decision.
There are different payment methods consumer uses while purchasing a product online
and most of the people use cash on delivery followed by cards and net banking. Most of
26
the youths do not have cards or having net banking so they prefer cash on delivery. Or we
can say that most of the people do not want to share their personal details about their card
and information about their bank so they use cash on delivery method. There are various
e-security issues and there are many hackers outside who can hack personal details so
most of the consumers prefer cash on delivery.
As we discussed earlier, consumers are information seeker and want to know everything
before purchase a product so according to the research, people who already purchase a
product share good experience to others after purchasing the product.
After purchasing a product, providing feedback is very effective to improve the
performance. Most of the people provide feedback sometimes but there are few people
too who do not provide feedback.
As online marketing increasing day by day, most of the people also thinks that
conventional marketing is more suitable because in online marketing, we cannot get an
idea about the quality of the product and if we do not like the product we have to wait for
the exchange and it takes 4-5 days. But in conventional marketing, consumers can see the
quality and they do not have to wait for the exchange, they can easily buy the product at
the same time.
As there is a campaign about Digital India Project, most of the people neither agree nor
disagree that people of India support this project. India is a developing country and most
of the people of India do not have any access of digital media.
But at last, most of the people think that digital marketing will expand in future and it
helps in to grow the Economy.
27
5.2 CONCLUSION
From this, we can conclude that future of marketing is in the hands of digital. Digital marketing
not only concerned with placing ads on web portals, but it is also concerned with providing
proper services and proper way to reach their channels. Consumers should have awareness about
the product and their buying behavior, their purchasing power influence the buying behavior of
the family too.
More than that consumers are information seekers and digital marketing helps the consumers to
get more information about the product and helps them to connect with brand. Every marketer
must know about their customers and their buying behavior. It will help them to get success in a
competitive economy.
Effective reach of advertisements will increase the sales of goods through digital channels. The
customers are satisfied with products they bought through the digital channels this is considered
as a positive sign for the growth digital channels in customer purchase decision. The present
study shows that there are few people who do not have any influence of digital marketing and it
does not change their buying behavior but in near future it will change as digital marketing will
expand more in future.
Digital marketing is also cost effective because they provide various offers and discounts on a
product. This study made in particular region, so accurate results on the variables could not be
able to obtain.There exists a future scope to analyses the impact of digital marketing on customer
purchase decision for a wider geographic area to obtain more accurate results.
I believe that, this project should be useful for marketers to understand the digital marketing and
also to plan for future strategies.
28
LIMITATIONS
Geographical scope of the study was limited to a small area, which may not represent the
whole sector of India. Size of the sample is 102, which is of course small in comparison
to entire population.
Data used is taken from the different websites and sources which may not be correct
properly.
The source of data for the study was primary data with the help of self-administered
questionnaire. Hence, the chances of error cannot be eliminated though all necessary
steps were taken to avoid the same.
Availability of time was one of the biggest limitations faced. Due to shortage of time, we
had to limit the work in its present form only.
There is a lack of interest too. Some people were not interested in filling the
questionnaire.
29
BIBLIOGRAPHY
https://www.researchgate.net/publication/326827333_Impact_of_digital_marketing_on
consumer_purchase_behaviour_A_case_study_on_Dialog_Axiata_with_specific_referen
ce_to_social_media_marketing
J.K. Sachdeva, Business Research Methodology, Himalaya Publishing House.
Jain P.C. and Bhatt M., “Consumer behavior in Indian context”, S. Chand, New Delhi,
2004.
ElisabetaIoanăs, IvonaStoica. (2014). Social media and its impact on consumers
behavior. International Journal of Economic Practices and Theories, 4.
https://www.digitaltechnology.institute/blog/impact-of-digital-marketing-on-consumer-
behaviour/
https://repository.up.ac.za/bitstream/handle/2263/59756/Reddy_Digital_2017
https://medium.com/analytics-for-humans/the-evolution-of-consumer-behavior-in-the-
digital-age-917a93c15888
Stephen C. (1982), “Buying behavior and Consumption Patterns” Journal of Consumer
Research, Vol 8, No.4 March.
DIGITAL ADVERTISING IN INDIA. [online] available from:
http://www.slideshare.net/TheHWD/digital-advertising-in-india-statistics-trends-2013
30
ANNEXURE
Questionnaire
A. Yes
B. NO
Question 2. Do you think Facebook ads or social media consumes your time?
A. Yes
B. No
Question 3. On the scale of 1-5, how happy are you with the services provided by various online
vendors?
A. Very unhappy
B. unhappy
C. neither unhappy nor happy
D. happy
E. very happy
A. Amazon
B. Jabong
C. Flipkart
D. Myntra
E. Other
31
Question 5. Indicate your level of satisfaction with the services provided by the shopping site
you choose earlier?
A. Strongly dissatisfied
B. Dissatisfied
C. Neither satisfied nor dissatisfied
D. Satisfied
E. Strongly satisfied
Question 6. Which payment method do you use while purchasing a product online?
A. Cash on delivery
B. Cards
C. Net banking
D. E-wallet
Question7. Do you experience any difficulties while doing online transactions?
A. Yes
B. No
Question 8. Do you find advertisements influential?
A. Yes
B. No
Question 9. What type of media you give more importance?
A. Radio
B. Newspaper
C. Online media
D. T.V.
Question 10. Do you read news though online?
A. Yes
B. No
Question 11. Do online advertising change your buying behavior?
A. Yes
B. No
32
Question 12. After purchasing a product online, what type of experience will you share with
others?
A. Very bad
B. Bad
C. Fine
D. Good
E. Very good
Question 13. Do you provide feedback after purchasing a product?
A. Yes
B. No
C. Sometimes
Question 14. Do you agree that ads on social media like YouTube,Facebook etc. are content
worthy?
A. Highly agree
B. Agree
C. Neutral
D. Disagree
E. Strongly disagree
A. Yes
B. No
C. Sometimes
Question 16. Do you agree that online marketing took over offline marketing?
A. Highly agree
B. Agree
C. Neutral
D. Disagree
E. Strongly disagree
33
Question 17. Do you agree that majority of people in India support the Digital India Project?
A. Highly agree
B. Agree
C. Neutral
D. Disagree
E. Strongly disagree
Question 18. In your opinion, will online marketing expand more in the future?
A. Yes
B. No
Question 19. Do you think digital marketing helps to grow the economy?
A. Yes
B. No
34
35