Exploring The Use of Online Marketing Strategies and Digital Media To Improve The Brand Loyalty and Customer Retention
Exploring The Use of Online Marketing Strategies and Digital Media To Improve The Brand Loyalty and Customer Retention
Exploring The Use of Online Marketing Strategies and Digital Media To Improve The Brand Loyalty and Customer Retention
4; 2016
ISSN 1833-3850 E-ISSN 1833-8119
Published by Canadian Center of Science and Education
Received: January 4, 2016 Accepted: January 11, 2016 Online Published: March 15, 2016
doi:10.5539/ijbm.v11n4p228 URL: http://dx.doi.org/10.5539/ijbm.v11n4p228
Abstract
As a marketing tool, internet and digital media is a significant strategic weapon which goes beyond borders and
targets the specific audience in accordance to the consumer needs. It is not dependent on the location, area or
region and free of all the temporal restrictions. This study focused on identifying the impact of the online internet
and digital media marketing strategies in creating the brand loyalty and retaining the existing and new customers.
This research was to explore the depth of internet and figure out the possible outcomes and benefits of using
internet and digital media as a marketing tool. The study opted a primary quantitative method and conducted a
survey of 200 consumers and results affirmed that internet is useful marketing tool which helps and assist the
companies to target specific and their targeted audience to promote their brand or product and also retain their
new and existing consumers. The study has finally revealed that internet marketing and digital media marketing
facilitates the companies and brands to increase their popularity and make loyal customers.
Keywords: online marketing, marketing strategies, internet marketing, digital media, brand loyalty, customer
retention, consumer perception
1. Introduction
The Internet has become a key, or one could say a strategic weapon: this is significant given the current
hyper-competitive environment, which simultaneously raises the question of its reliability (Chen, 2006). Over
the past twenty years, the development of information technology and a knowledge economy have made
customer loyalty in the hotel industry a central issue for marketing scholars. By efficiently handling customer
profiles through customer equity management, companies could maximize the lifetime value of each customer as
one of their assets (Tsekouropoulos et al., 2013). Numerous scholars have used a variety of formulas to prove the
value of customers’ lifetime patronage to a company (Doostar & Mohammadi, 2014). What seems to be lacking
in customer equity theory, however, is an understanding of the strategies that cause customers to return to a
business, a phenomenon known as customer loyalty, and which allows companies to maximize profits through
repeat business.
The significance of online marketing is currently increasing, as we can observe changes in the ways people
communicate and also in the ways they spend their free time. The advantage of the Internet as a communication
medium likewise lies in the fact that it allows us to target the conveyed information at a precisely specified
audience segment (Roblek, 2015). These facts seem important from the perspective of their use in public
relations activities not only in the business sphere, but also in academic environment. Dilts, Hauser, and
Hausknecht (2006) states that public relations in an online environment are mainly about convincing the public
to use this medium to make positive comments about the organisation’s products or services. Unlike the off-line
environment, the nature of the Internet provides a possibility to quickly connect without any geographical
constraints groups of people who are interested in discussing the organisation and its parts. There is still no
widespread agreement regarding online marketing strategies and other digital media have an effect on the brand
loyalty or in the retention of the consumers.
2. Research Aim
The main aim of this study is to explore the use of Online Marketing Strategies and Digital Media to improve the
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putting disciplines of marketing, sales, and service to task. There’s no point choosing a customer management
model that does not work with the functional strategies, and disciplines in place, and not addressing the changes
required to these.
6.1.1 Internet Technology and Internet Marketing
Internet technology is one of the most significant technologies of the 20th century (Zhang et al., 2015). The Web
is an Internet application that has played an important role in modern marketing and retailing. The Internet has
been highly influential in removing separations between IT and “the business”. While it is important to
understand the internet’s role in retailing and retail marketing from a higher level (strategic point of view), it is
also important to understand the impact of the internet on various retailing aspects. Studying the characteristics
of new media technology provides a structured context to understand social effects and compare different media
(Goi, 2009). Understanding the internet’s impact and potential on major aspects of retailing can result in better
marketing programs and sustainable marketing strategies. By 2008 the Internet was an “old hat” for the
executives at the advertising agency. The agency used the Internet for much of its internal and external
communication, and much like the rest of the world, was beginning to use the Internet for marketing
opportunities. Specifically, the agency explored the social networks of Facebook and Twitter as marketing
avenues for many of the brands it represented (Cader & Al Tenaiji, 2013).
The last several years have seen a dramatic increase in the amount of time and money consumers spend online. A
recent survey reports that consumers spend around 33% of their time online (Corley II, Jourdan, & Ingram,
2013). As a consequence, the Internet has become an important channel that firms can use to reach out and
connect to consumers which has led to the emergence of online advertising. Several forms of online advertising
has evolved over the year, e.g. sponsored search, display advertising, email marketing, classifieds and more
recently social network advertising, sponsored search and display advertising dominating the online marketing
landscape (Roberts & Zahay, 2012). Internet advertising has become a significant component of advertisers’
marketing mix. Firms spent close to US $ 35 Billion on online advertising in the year 2011 and this expense is
expected to double in the next 5 years (Lin, Ming, & Bin, 2011). The online advertising spend surpassed the
amount spent on newspaper advertising in the year 2010 and is expected to surpass television advertising by the
year 2016. The internet has had a big impact on how customers think and buy: Facebook has more than 500
million active users at the time of writing. Twitter has 500 million tweets per day, 600 per second, and there are 4
million LinkedIn users. LinkedIn has become the network of choice for business people worldwide and possibly
the most relevant and updated business directory (Çiçek & Eren-Erdogmus, 2013). The power of customer
pressure has increased. Complaint and referral is becoming ever more powerful, enabled of course by these and
other internet applications.
“The key to using the Internet to extend and build relationships is to view ownership of information
differently—you need to bring customers inside your business to create information partnerships.” (Michael Dell)
6.1.2 Digital Media
Dozens of digital tools, most notably mobile devices, allow users and consumers (and marketing practitioners) to
easily share information with others, anytime and anywhere. In practice, many online forums usually require
participants to register and provide some identification. Their online commentary sections, however, often do not
require any personal identification from contributors (Erdoğmuş & Cicek, 2012). Consequently, in some cases,
digital audiences may find it difficult to judge the credibility of the sender and the message.
One of the most important benefits of digital media is the ability to support feedback, interactivity, and response,
a factor that provides vital information on customers and prospects that can be used to fine-tune communications
(Erdoğmuş & Cicek, 2012). This is a process known as intelligent direct marketing-marketing driven by
response. To support the process, the following digital communications can be used:
data capture applications;
predictive forms and surveys;
online evaluators;
interactive sales presentations;
relationship publishing;
Intelligence-driven Web conferences.
With digital media, it’s possible to improve the presentation of product information, replacing single static
images with interactive models that allow users to manipulate the product just as they would in real life
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(Thaichon, Lobo, & Mitsis, 2012). Using a product configurator, an interactive design device built into a Web
site, customers can change the colour, size, components, or any other variable feature of a product.
Digital media are opening up ever more opportunities for online marketing, helping to make communication
targeting more precise and increasing levels of feedback and interactivity. Digital media support a process known
as “intelligent marketing,” in which content is refined in line with campaign response and feedback (Salehi et al.,
2012). This can help marketers make better use of their budgets and increase customer loyalty.
Digital media allow marketers to deliver more value to customers. For instance, they enable customers to receive
personalized communications and special offers that are tailored to their individual preferences (Cader, & Al
Tenaiji, 2013). This is particularly important in complex business-to-business marketing with large groups of
decision-makers and a long sales cycle.
6.2 Customer Retention and Brand Loyalty
A clear targeting strategy, value proposition, and customer retention is of paramount importance for all
organisations. Some scholars also argued customer loyalty were difficult to measure, so the integrated approach,
which included attitudinal and behavioural dimension of loyalty, was employed through variety combination
(Erdoğmuş & Cicek, 2012). Loyalty programs or relationship marketing should focus not only on repeat benefits,
but also on attitudinal loyalty, emotional loyalty, imagination, social influence, and pleasure (Laroche, Habibi, &
Richard, 2013). Due to the difficulty of observing customers’ loyalty and learning their viewpoints, the
dimensions of true loyalty cannot be identified (Dawes, Meyer-Waarden, & Driesener, 2015). In addition, it was
difficult to identify what motivators or strategies attracted customer loyalty except the repurchase behaviours by
experimental design. E-Commerce has also changed the balance of power. The role of digital marketing (DM) in
a firm’s marketing strategy has been expanding in the industrial sector, as evidenced by industrial firms’
increasing investments in DM activities, which currently account for approximately one-quarter (26%) of
industrial firms’ total marketing budgets (Ying & Jin, 2014). In addition to cost effectiveness and changes in
customer behavior, investments in DM are motivated by its results being more easily measured compared with
those of traditional marketing (Dehkordi et al., 2012). As customers are increasingly interacting with companies
through digital channels, marketers have realized the need to track these interactions and to measure their
performance (Ying & Jin, 2014). For this purpose, firms must adopt Web analytics (WA), defined as “the
measurement, collection, analysis and reporting of Internet data for the purposes of understanding and
optimizing Web usage” (Web Analytics Association, 2008, p. 3).
Contrary to the early image that the internet was a place for bargain hunting, the internet has become more
frequently viewed as a place to provide better service and enhance consumer relationships (Thaichon, Lobo, &
Mitsis, 2012). It has been realized that companies must strive for a complete view of their customers, as the
relationship shifts from commerce to collaboration (Cader & Al Tenaiji, 2013). Due to its potential for interactive
communication, the Internet has evolved into a promising tool for relationship marketing.
Customer satisfaction is driven more by quality and customization than by value (price) and reliability.
Satisfaction can be transaction-specific or cumulative, and these have varying effects on consumer perceptions
(Corley II, Jourdan, & Ingram, 2013). While equity, or “a fairness, lightness, or deservingness comparison to
other entities, whether real or imaginary, individual or collective, person or non-person” (Dawes,
Meyer-Waarden, & Driesener, 2015), is a driver of transaction-specific satisfaction, it is more of a
post-satisfaction evaluation when modeling cumulative satisfaction. Satisfaction is highly correlated with long
term relationships (Ying & Jin, 2014). Dilts, Hauser, and Hausknecht (2006) have mentioned in their research
that the satisfaction is widely used as a mediator to customer relationships. The role of satisfaction in the
customer relationship building process also may vary according to the business context and consumer level
variables. By contrast, trust has been conceptualized as a link between buyer-seller relationships and customer
retention and loyalty (Thrassou & Vrontis, 2008). Trust refers to consumer willingness to rely on an exchange
partner in whom one has confidence, and it can be a multifaceted construct (Dawes, Meyer-Waarden, &
Driesener, 2015). For example, consumers may have different trust in a product, a company, or a sales person.
Trust can be transformed to value and customer loyalty.
The marketing opportunities fuelled by the internet can be viewed from three aspects (Corley II, Jourdan, &
Ingram, 2013): enhanced selling process, enhanced customer buying experience, and enhanced customer usage
experience. The selling process can be improved by customer input, customer targeting, customer aggregation,
benefit selling, and achievement selling. The customer buying experience can be enhanced by providing
solutions and tailored products, while the customer usage experience can be enhanced with value-added services
and customized support.
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The abovee table displays that from thee total of 200 respondents 148 were male respondents aand 52 were fe
emale
respondennts. These malee respondents concluded 744% of the popuulation whereaas female resppondents conclluded
26% of thee population.
Factors Gender
Male F
Female Totall
Age 18 – 25 yearss 15 5 20
26 – 30 yearss 27 7 34
31 – 35 yearss 32 122 44
36 – 40 yearss 62 233 85
Over 40 yearrs 12 5 17
Government Employee 37 11 48
Retired/Houssewife 45 144 59
Marital Status
S Single 47 166 63
Married 52 21 73
Divorcee 31 8 39
Widowhood 18 7 25
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70
60
50
40
30
20
10 Gender Male
0 Gender Female
Married
18 – 25 years
Over 40 years
Retired/Housewife
Private Employee
Government Employee
Widowhood
Divorcee
26 – 30 years
31 – 35 years
36 – 40 years
Student
St d t
Single
Age Occupationaal Status Marital Staatus
The abovee table represennts the three deemographic chharacteristics oof the respondeents of the survvey. The age factor
f
shows thatt the majority of the particippants were of the age group of 36-40 yearrs i.e. around 885 respondents (62
male respoondents and 233 female responndents).
Occupational status of thhe respondentts showed thatt the majority of the particippants belong too retired/house
ewife
group which concluded ofo 45 males annd 14 female reespondents.
Marital staatus of the partticipants showed that majoritty of the respoondents was maarried accordinng to the condu
ucted
survey. Froom the total off 73 married reespondents 52 were male resspondents and 21 were femalle respondents.
7.2 Surveyy Results
Has the internett marketing ever influenced aand made you to purchase anny product?
Table 2. H
Frequencyy Percentt Valid P
Percent C
Cumulative Perceent
V
Valid Yes 150 75.0 75.0 75.0
No 50 25.0 25.0 100.0
Total 200 100.0 100.0
The abovee table illustraates that 150 pparticipants haas agreed to geet influenced and 50 particiipants denies to
t be
influencedd by the internnet marketing. According to the results, it becomes visibble that 75 % of the respond dents
agree that internet markeeting helps in iinfluencing theeir purchasing decision.
Table 3. D
Do you use inteernet for the puurpose of produuct informationn?
Frequenccy Percentt Valid P
Percent C
Cumulative Perceent
V
Valid Yes 152 76.0 76.0 776.0
No 48 24.0 24.0 100.0
Total 200 100.0 100.0
The abovee chart demonnstrates that ouut of 200 resppondents, 152 participants has agreed to uuse internet fo or the
product infformation and 48 participantts denies to usee the internet foor getting prodduct informatioon. According to
t the
results, it bbecomes clear that 76 % of thhe participantss have agreed tthat they use innternet for the purpose of pro
oduct
informatioon.
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Table 4. Do you use internet for the shortlisting of the products you want to purchase?
Frequency Percent Valid Percent Cumulative Percent
Valid Yes 151 75.5 75.5 75.5
No 49 24.5 24.5 100.0
Total 200 100.0 100.0
The table box displays that out of 200 participants 49 participants denied that they never use internet for
shortlisting of products whereas 151 participants agreed that they use internet for shortlisting their products for
purchasing. From the above chart, it becomes significant that 75.5% of the participants use internet for shortlisting
their products for purchasing.
Table 5. Have you ever come across any marketing campaign or advertising of any particular product or
company online?
Frequency Percent Valid Percent Cumulative Percent
Valid Yes 148 74.0 74.0 74.0
No 52 26.0 26.0 100.0
Total 200 100.0 100.0
The above table demonstrates that 148 participants have agreed that they have seen many online advertising
campaigns whereas 52 participants have never come across such advertising campaigns. According to the results,
it becomes visible that 74 % of the participants agreed that they usually come across such marketing campaigns.
Table 6. Do you think companies using the online medium for promoting or marketing their product benefit
them?
Frequency Percent Valid Percent Cumulative Percent
Valid Yes 140 70.0 70.0 70.0
No 60 30.0 30.0 100.0
Total 200 100.0 100.0
From the illustrative chart it becomes clear that 70 % of the participants had used online medium for promoting or
marketing their product where as 30 % of the participants have disagreed to use online medium for promoting their
products.
Table 7. What do you think is the highest benefit of using online internet marketing strategy?
Frequency Percent Valid Percent Cumulative Percent
Valid Web Experience personalization 59 29.5 29.5 29.5
Competitor Analysis 86 43.0 43.0 72.5
Cost Reduction 36 18.0 18.0 90.5
Others 19 9.5 9.5 100.0
Total 200 100.0 100.0
According to the survey conducted, the above mentioned results clearly displays that 86 out of 200 participants has
mentioned competitor analysis as the major benefit of using internet marketing strategy and 36 participants
mentioned it for cost reduction.
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Table 8. Has any of the products you purchased online has made you repurchase that product again?
Frequency Percent Valid Percent Cumulative Percent
Valid Yes 150 75.0 75.0 75.0
No 50 25.0 25.0 100.0
Total 200 100.0 100.0
The above chart demonstrates that out of 200 respondents 150 participants has agreed to repurchase the products
again and 50 participants denied repurchasing the products. According to the results, it becomes clear that 75 % of
the participants have agreed to repurchase the products again.
The above chart represents that out of 200 respondents 80 participants said that they purchase online marketed
products quite often and 63 participants said that they purchase it quite rarely. So, it is visible that 40% of the total
participants purchase online marketed products.
Table 10. Do you think the internet marketed new products are reliable and satisfactory?
Frequency Percent Valid Percent Cumulative Percent
Valid Yes 143 71.5 71.5 71.5
No 57 28.5 28.5 100.0
Total 200 100.0 100.0
The results displays that 143 participants believe that the products purchased online are more reliable and
satisfactory but 57 participants denied the fact. Out of 100% only 28.5% of the participants disagree with the
statement whereas 71.5% agrees to the statement.
Table 11. Has any of the online marketed product which you have purchased has made you brand loyal?
Frequency Percent Valid Percent Cumulative Percent
Valid Yes 146 73.0 73.0 73.0
No 54 27.0 27.0 100.0
Total 200 100.0 100.0
From the above illustrative chart it becomes clear that 73 % of the participants said that they more loyal towards
the brand when purchased online and 27 % of the participants disagree to the fact. Out of 200 respondents 146
respondents had agreed that products which they had purchased online have made them brand loyal whereas 56
respondents disagreed to the statement.
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Table 12. Which of the following online marketing strategy do you think is most effective in influencing you to
purchase a product?
Frequency Percent Valid Percent Cumulative Percent
Valid Social Media Marketing 27 13.5 13.5 13.5
Email Marketing 35 17.5 17.5 31.0
Search Engine Optimization (SEO) 52 26.0 26.0 57.0
Blogs or Discussion Forums 70 35.0 35.0 92.0
Others 16 8.0 8.0 100.0
Total 200 100.0 100.0
According to the chart, it is vibrant that blog or discussion forums are most effective online marketing strategy as
compared to others. 35 % of the participants have voted for blogs and discussion forum whereas 13.5% of the
participants have voted for social media marketing and 26% of the participants voted for search engine
optimization.
8. Discussion
At the strategic level, the role of the internet in retailing has been discussed in terms of the role of the internet in
marketing. As stated by Singh and Cullinane (2010), “the internet, a major component in this technological
revolution, has progressed from an information-centric medium to one that is increasingly being characterized by
the creation, dissemination and coordination of collective intelligence” (p. 202). The use of interactive media may
not, itself, comprise a specific marketing technique since many marketing approaches can be implemented with or
without IT/Internet infrastructure. For example, the idea of database marketing was widely used in direct
marketing long before the existence of database technology (Tsekouropoulos et al., 2013). Thus, instead of
viewing internet marketing as a category of marketing techniques, internet marketing can be viewed simply as
electronic media-enabled marketing. Following Dilts, Hauser, and Hausknecht (2006), the internet’s impact on
consumer marketing can be viewed from a marketing tool or marketplace perspective. The first perspective
considers the internet as one of many tools available for marketers to communicate and sell their products to
customers (Drossos et al., 2011). The second view recognizes the potential power of the internet to create a new
marketplace (Roberts & Zahay, 2012).
A study by Thaichon, Lobo, and Mitsis (2012) has stated, “With the increased adoption ad fission of the Internet,
World Wide Web is becoming gradually a standard advertisement platform. The Web is offering business
advertisement world with more rich media tools, interactive services, and global reach. In an effort to explore the
factors that affect online advertisement effectiveness, this paper investigate the factors that influence online
advertisement and hence the purchasing intention among Jordanian university students. These findings can help
business understand what matters more for a young country of consumer in a developing country context. Thus,
business can develop more effective online advertisement campaigns”.
The internet can have major impacts on a variety of retailing dimensions, and researchers have used various
frameworks to discuss these impacts. For example, Agag and Elbeltagi (2014) discussed the internet’s impact on
retailing from globalization, human resources, consumer behavior, and retail formats. Agag and Elbeltagi (2014)
have provided a framework to systematically view the internet’s impact on the retail market. Roberts and Zahay
(2012) categorized the unique characteristics of the internet for retail applications from three dimensions:
technology infrastructure, channel integration, and market information. Market effects were analyzed through
product offerings, a new consumer participation model, and changes in industrial structure. Others have focused on
specific issues such as interactivity (Hamid & McGrath, 2015), price searching (Mikians et al., 2012), and
multi-channel distribution (Hsieh et al., 2012).
The Internet can be an interactive channel. Many applications, such as personalization and online communities
(Thaichon, Lobo, & Mitsis, 2012), can help to provide interactivity to consumers. Individual customers can
receive tailored information through user profiles and identification. Consumers can be welcomed with a
personalized greeting when entering a site. When a returning consumer visits a Website, the site can alter color,
layout, and content according to the individual’s pre-recorded preferences.
Online communities are another interactive online application. The Web provides a community-building
infrastructure (chat rooms, bulletin boards, interactive events), which has a positive effect on loyalty intentions
(Cader & Al Tenaiji, 2013). Dialogue can proceed in real time in chat rooms, or asynchronously on bulletin boards.
It was found that personalized web sites developed stronger consumer-brand relationships for respondents with
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extensive Internet experience, and customer communities developed stronger relationships among respondents
with limited Internet experience (Thaichon, Lobo, & Mitsis, 2012).
Online consumers have more opportunities for product or service involvement. Online consumers can even be
involved in product design and product testing (Roblek, 2015). For example, online consumers can help to design
cars or select new songs for promising artists. The internet enables them to provide product feedback much more
easily than they could in the traditional market (Cader & Al Tenaiji, 2013). They can search for answers to their
problems and share knowledge in virtual communities. The value chain becomes transparent to them in the sense
that they can understand what happens behind the retail scene; thus, online consumers may feel more involved in
the value delivery process.
9. Conclusion
Marketing strategy adopted by the company reflects the three processes of the company which the marketing
impacts. These processes are the product management or development, supply chain management and customer
relationship management. This study has highlighted the impact of marketing on the customer relationship
management, i.e. the impact of internet marketing and digital media marketing on the brand loyalty creation and
retention of the consumers more precisely. In light of above findings and review of the related literature, it has been
concluded that the people are influenced by the marketing strategies used by the companies based on the internet
and digital media. The companies use the internet technology to market their product as this is an era of innovation
and online technology and every single individual in this planet today uses the internet for various purposes. The
companies focuses on the internet and digital media as effective marketing strategy because it is cost effective and
also helps them in assisting to have the competitors analysis and check what their new products are and how
rigorously are they marketing their brand or product. It was also seen that this online internet marketing have
assisted the consumers in personalizing their requirements and needs so that companies could market only those
products which consumers need. Web experience personalization helped the companies to understand the needs of
the consumers and segment them and market them the products or brands in accordance to their needs, that is, this
internet marketing strategies assist the companies to identify their target audience and market their product only to
those audience. Individual customers can receive tailored information through user profiles and identification.
This study showed that the majority of the respondents agreed that they are influence by the internet marketing of
the products or brands which persuades them to purchase those brands or products. Also, the survey result showed
that majority of the participants agreed that they purchased the online internet marketed product and as they liked
that product so they repurchased that product again. This means that the internet marketing has helped the
company to retain their customer and increased brand loyalty. The result showed the internet marketing has
facilitated the companies and brands to progress further and increase the customer retention ratio.
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