CHAPTER I

1.1 INTRODUCTION
Online marketing also known as digital marketing, web marketing, and internet
marketing or e-marketing is the marketing of products or services over the Internet.
Internet marketing is sometimes considered to be broad in scope because it not only
refers to marketing on the Internet, but also includes marketing done via e-mail and
wireless media. Management of digital customer data and electronic customer
relationship management (ECRM) systems are also often grouped together under
internet marketing. Clearly, marketers are adding on-line channels to find, reach,
communicate, and sell. I-marketing has at least five great advantages. First, both small
and large firms can afford it. Second, there is no real limit on advertising space, in
contrast to print and broadcast media. Third, information access and retrieval are fast,
compared to overnight mail and even fax. Fourth, the site can be visited by anyone
from any place in the world. Fifth, shopping can be done privately and swiftly.
Internet marketing and e-commerce has marked its place in the world of technology.
The success of any business at present strongly depends on Internet marketing. Below
gives a graphical view of how online marketing can effectively be planned.

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There are many sources of online marketing or Digital Marketing as described below:

Web Marketing:

Web marketing includes Web sites, Affiliated marketing Web sites, promotional or
informative Web sites, online advertising on search engines, and organic search
engine results via Search Engine Optimization (SEO). Internet marketing is
sometimes considered to be broad in scope because it not only refers to marketing on
the Internet, but also includes marketing done via e-mail and wireless media.

Web Marketing

Social Media Marketing:

Social media marketing involves both advertising and marketing efforts via social
networking sites like Face book, Twitter, YouTube and Digg. This has come with a
most useful source of marketing as there are billions of people reach out these media
and thus make possible to reach the people anywhere in the world with , simple
broadcasting of the product advertisement takes no time to reach the consumers
.Internet, but also includes marketing done via e-mail and wireless media.
Management of digital customer data and electronic customer relationship
management (ECRM) systems are also often grouped together under internet
marketing. Clearly, marketers are adding on-line channels to find, reach,
communicate, and sell. I-marketing has at least five great advantages.

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 Social Media Marketing

Email Marketing:

Email marketing involves both advertising and promotional marketing efforts via e-
mail messages to current and prospective customers. Email messaging has made
possible to send promotional messages to the email users acting as a quick mode of
online product broad cast over internet. Digital marketing for ecommerce applies
traditional marketing principles to a multichannel, data-driven environment. Digital
marketing for ecommerce applies traditional marketing principles to a multichannel,
data-driven environment. Studying collaborative research and the accessing of
external sources of technology, Hummel found that in deciding on business partners,
it is important to make sure that both parties' business models are complementary

Email Marketing

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E-commerce Marketing:
E-commerce marketing is the process of driving sales by raising awareness about an
online store's brand such as Amazon, flip kart, snap deal and many other online
product services, product offering companies. Digital marketing for ecommerce
applies traditional marketing principles to a multichannel, data-driven environment.

E-commerce Marketing
Internet marketing is associated to various business models. It comprises of e-
commerce business model where goods and services are sold directly to consumers
(B2C), businesses (B2B) or from one consumer to other consumer (C2C).These
business model are described below. Studying collaborative research and the
accessing of external sources of technology, Hummel found that in deciding on
business partners, it is important to make sure that both parties' business models are
complementary. For example, they found that it was important to identify the value
drivers of potential partners by analysing their business models, and that it is
beneficial to find partner firms that understand key aspects of our own firm's business
model ,one being that it often depends on campaigns' abilities to invoke emotional
responses, rather than solely demonstrating value. Marketers with carefully designed
World Wide Web sites are already interacting computer to computer, with prospective
customers or an individual basis, much as ATM does in very primitive fashion

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Business-to-customer (B2C):
Business-to-customer marketing refers to the tactics and best practices used to
promote products and services among consumers. B2C marketing differs from
B2B marketing in a number of key ways, one being that it often depends on
campaigns' abilities to invoke emotional responses, rather than solely demonstrating
value.

Business-to-Business Model:
B2B (business-to-business) marketing is marketing of products to businesses or
other organizations for use in production of goods, for use in general business
operations (such as office supplies), or for resale to other consumers, such as a
wholesaler selling to a retailer.

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Customer-to-customer Model
C2C, or customer-to-customer, or consumer-to-consumer, is a business model that
facilitates the transaction of products or services between customers. An example of
C2C would be the classifieds section of a newspaper, or an auction.

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 1.2 SCOPE OF THE STUDY
Market research can help you solve problems and reduce the risk of making important
business decisions. Discover the 8 types of market research you can conduct to
identify and solve any business challenges.

1. Brand Research

Brand research helps with creating and managing a company’s brand, or identity. A
company’s brand is the images, narratives, and characteristics people associate with it.

When to use it

Brand research can be used at every stage in a business’s lifecycle, from creation to
new product launches and re-branding. There are at least seven types of brand
research:

Brand advocacy How many of your customers are willing to recommend your brand?

• Brand awareness. Does your target market know who you are and consider you a
serious option?
• Brand loyalty. Are you retaining customers?

• Brand penetration. What is the proportion of your target market using your brand?

• Brand perception. What do people think of as your company’s identity or

differentiating qualities?

• Brand positioning. What is the best way to differentiate your brand from others in
the consumer’s mind and articulate it in a way that resonates?

• Brand value. How much are people willing to pay for an experience with your brand
over another?

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How it’s done
A researcher will use several types of market research methods to assess your and
your competitors’ strengths and weaknesses. Generally, they will conduct competitor
research to get a picture of the overall marketplace. Focus groups and interviews can
be used to learn about their emotions and associations with certain brands.

Market research surveys are useful to determine features and benefits that
differentiate you from competitors. These are then translated into emotionally
compelling consumer language.

2. Campaign Effectiveness

―Half the money I spend on advertising is wasted; the trouble is, I don’t know which
half‖ — John Wanamaker
What it is
This type of market research is designed to evaluate whether your advertising
messages are reaching the right people and delivering the desired results. Successful
campaign effectiveness research can help you sell more and reduce customer
acquisition costs.
When to use it
If the folks at market research firm Yankelovich, Inc. are correct, people see up to
5,000 advertising messages each day. That means attention is a scarce resource, so
campaign effectiveness research should be used when you need to spend your
advertising dollars effectively.

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How it’s done
Campaign effectiveness research depends on which stage of the campaign you use it
in (ideally, it’s all of them!). Quantitative research can be conducted to provide a
picture of how your target market views advertising and address weaknesses in the
advertising campaign.

3. Competitive Analysis

What it is
Competitive analysis allows you to assess your competitor’s strengths and weaknesses
in the marketplace, providing you with fuel to drive a competitive advantage.
When to use it
No business exists in a vacuum—competitive analysis is an integral part of any
business and market plan. Whether you’re just getting started, moving into a new
market, or doing a health check of your business, a competitive analysis will be
invaluable.
How it’s done
A researcher will typically choose a few of your main competitors and analyse things
like their marketing strategy, customer perceptions, revenue or sales volume, and so
on.
Secondary sources such as articles, references, and advertising are excellent sources
of competitive information; however,primary research, such as mystery

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shopping and focus groups can offer valuable information on customer service and
current consumer opinions.

4. Consumer Insights
What it is
Consumer insights research does more than tell you about who your customers are
and what they do. It reveals why customers behave in certain ways and helps you
leverage that to meet your business goals.
When to use it
Knowing your customers deeply is integral to creating a strategic marketing plan.
This type of market research can help you anticipate consumer needs, spark
innovation, personalize your marketing, solve business challenges, and more.
How it’s done
Consumer insights research should be specific to your business—it’s about getting to
know your customers and your target market. Various market research methods can
be used, such as interviews, ethnography, survey research, social monitoring, and
customer journey research.

Here are some of the characteristics you should understand through consumer insights
research:
• Purchase habits

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• Interests, hobbies, passions
• Personal and professional information
• How they consume media and advertising

Start getting customer feedback with Type form

5. Customer Satisfaction Research

What it is
Customer satisfaction research is a type of market research that measures customers’
experiences with products or services, specifically looking at how those meet, exceed,
or fail to live up to their expectations.
When to use it
Customer satisfaction is a strong indicator of customer retention and overall business
performance. Successful customer satisfaction research should help you understand
what your customers like, dislike, and feel needs improvement. You can use this type
of market research to look at quality and design of products; speed and timeliness of
delivery; staff and service reliability, knowledge, friendliness; market price; and value
for money.
How it’s done
There are several ways to measure customer satisfaction, most commonly using
surveys. Net Promoter Score surveys can help you measure customer loyalty.
Customer Effort Scoring measures how satisfied people are with customer service or
problem resolution. CSAT is any survey that measures customer satisfaction, typically

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measured using Liker Scale surveys. They can be conducted at different points in the
customer experience, allowing deeper insight into that moment.

6. Customer Segmentation Research

What it is
Customer segmentation studies aim to divide markets or customers into smaller
groups or personas with similar characteristics to enable targeted marketing. By
understanding how people in each category behave, you can understand how each
influences revenue.
When to use it
As soon as you’re ready to start giving customers individualized experiences. Not
every customer in your target market is the same. The more you understand each
specific persona, the easier it is to focus on delivering personalized marketing, build
loyal relations, price products effectively, and forecast how new products are services
will perform in each segment.
How it’s done
Market researchers use four characteristics to segment customers.
• Demographics. Demographic information such as age, gender, family status,
education, household income, occupation and so on.
• Geography. Where people live, from cities and countries to whether they are city
dwellers or suburbanites.

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• Psychographics. Socioeconomic status, class, lifestyle, personality traits, generation,
interests, hobbies, etc.
• Behaviour. Brand affinity, consumption and shopping habits, spending, etc.
A researcher will identify your current customers and collect data about them through
various market research methods, such as surveys, database research, website
analytics, interviews, and focus groups. The aim is to gather as much information as
possible.

7. Product Development
What it is
Market research for product development involves using customer knowledge to
inform the entire process of creating or improving a product, service, or app, and
bringing it to market.
When to use it
Innovation is hard work. A quick Google will tell you that 80 – 95% of new products
fail every year. Conducting market research for product and app development helps
minimize the risk of a new product or change going bust as it enters the market. There
are four stages where you can use market research:
• Conception. The moment you’re thinking about adding something new, market
research can find market opportunities and provide insights into customer challenges
or their jobs-to-be-done, so you can find a way to fill the gap.

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• Formation. Once you have an idea, market researchers can help you turn it into a
concept that can be tested. You can learn more about strategizing pricing, testing
advertising and packaging, value proposition, and so on.
• Introduction. Market research can help you gauge attitudes towards the product once
it’s in the market and adapt your messaging as it rolls out.
• Keep making the product better or find opportunities to introduce it to new markets.
How it’s done
Product development research will utilize different market research methods,
depending on the goal of the research. A researcher could present focus groups with
product concepts and listen to their opinions, conduct interviews to learn more about
their pain points or perform user testing to see how they interact with an app or
website.

8. Usability Testing
What it is
Usability testing is concerned with understanding how customers use your products in
real time. It can involve physical products, like a new blender, or digital products like
a website or app.
When to use it
Usability testing is helpful when you need to detect problems or bugs in early
prototypes or beta versions before launching them. It typically costs far less to test a

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product or service beforehand than to pull a flawed product off the shelves or lose
sales because of poor functionality.
How it’s done
There are several types of usability tests, which vary based on whether you’re testing
a physical or digital product.
• Journey testing involves observing the customer experience on an app or website
and monitoring how they perform. This type of study can be done online.
• Eye tracking studies monitor where people’s eyes are drawn. Generally, they are
conducted on websites and apps, but can also be done in stores to analyse where
people look while shopping.
• Learnability studies quantify the learning curve over time to see which problems
people encounter after repeating the same task.
• Click tracking follows users’ activity on websites to evaluate the linking structure of
a website.
• Checklist testing involves giving users tasks to perform and recording or asking
them to review their experience.

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 1.3 NEED OF THE STUDY

Internet Marketing in its simplest terms refers to the marketing and selling of goods
and services using the Internet as the sales and distribution medium. The current
project on innovative marketing strategies aims to understand the concept of online
marketing; study as to how much online marketing has penetrated in the market place;
gain insights about functioning of online marketing; study the benefits of online
marketing for the businesses as well as the customers and explore the future prospects
of online marketing.
The report concludes that internet has opened up new avenues for reaching the
consumer. It is true that there is never a fixed way or strategy that a marketer can use
to market its products and services on the internet but it is still very much an arena
where creative thinking can take the company reach new heights. Thus we can say
that marketing has not changed its shape. It is the same, unpredictable, unusual and
creative field that needs constant change and open inputs that can work wonders for
the company, study the benefits of online marketing for the businesses as well as the
customers and explore the future prospects of online marketing.

7 P'S Of ONLINE Marketing are presented below diagrammatically with

description

7 P'S Of Internet Marketing are as described below:-

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1. Product:

Product on the Internet usually changes form online, and the user experiences it
electronically, in the form of text, images and multimedia. Physical goods are usually
presented in the form of a detailed online catalogue that the customer can browse
through. Technology allows the user to virtually touch and feel the product on the
Internet - rotate it, zoom in or zoom out and even visualize the product in different
configurations and combination. It will rather be on the uniqueness of the product. To
be able to attract the customers and retain them, the company will have to provide
nouvelle and distinct products that forces the net users to purchase and come back for
more.

2. Price:

Price has been drastically changed over the Internet. It lets the buyer decides the price.
Also it gives the buyers information about multiple sellers selling the same product. It
leads to best possible deal for the buyers in terms of price. Pricing is dynamic over the
Internet. Many Internet marketing firms don’t provide Internet marketing pricing on
their websites. At Webpage, we believe our clients deserve a detailed listing of what
our prices include. No games. No hidden fees. Accurate pricing for our Internet
marketing services based on years of experience. Whether you’re looking for SEO,
link building, or social media pricing, our website offers Internet marketing pricing
options in a range of plans to suit your specific marketing approach. Internet
marketing prices are intended to match your needs so that you get what you pay for
and maybe a little more.

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3. Place:

Place revolves around setting up of a marketing channel to reach the customer.

Internet serves as a direct marketing channel that allows the producer to reach the
customer directly. The elimination of the intermediate channel allows the producer to
pass the reduced distribution cost to the customer in the form of discounts.

4. Promotion:

Promotion is extremely necessary to entice the customer to its website, as there are
currently more than one billion web pages. Promoting a website includes both online
and offline strategies. Online strategies include search engine optimization, banner
ads, multiple points of entry, viral marketing, strategic partnership and affiliate
marketing. Presently, the cyberspace is already cluttered with thousands of sites
probably selling similar products. The report concludes that internet has opened up
new avenues for reaching the consumer. It is true that there is never a fixed way or
strategy that a marketer can use to market its products and services on the internet but
it is still very much an arena where creative thinking can take the company reach new
heights

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5. Presentation:

The presentation of the online business needs to have an easy to use navigation. The
look and the feel of the web site should be based on corporate logos and standards.
About 80% of the people read only 20% of the web page. Therefore, the web page
should not be cluttered with a lot of information. Also, simple but powerful
navigational aids on all web pages like search engines make it easy for customer to
find their way around.

6. Processes:

Customer supports needs to be integrated into the online web site. A sales service that
will be able to answer the questions of their customers fast and in a reliable manner is
necessary. To further enhance after sales service, customers must be able to find out
about their order status after the sale has been made.

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 7. Personalization:

Using the latest software it is possible to customize the entire web site for every single
user, without any additional costs. The mass customization allows the company to
create web pages products and services that suit the requirement of the user. A
customized web page does not only include the preferred layout of the customer but
also a pre selection of goods the customer may be interested in.

How can companies use this model?

Companies can use the 7Ps model to set objectives, conduct a SWOT analysis and
undertake competitive analysis. It's a practical framework to evaluate an existing
business and work through appropriate approaches whilst evaluating the mix element
as shown below and ask you the following questions:

 Products/Services: How can you develop your products or services?

 Prices/Fees: How can we change our pricing model?

 Place/Access: What new distribution options are there for customers to experience
our product, e.g. online, in-store, mobile etc.

 Promotion: How can we add to or substitute the combination within paid, owned
and earned media channels?

 Physical Evidence: How we reassure our customers, e.g. impressive buildings,

well-trained staff, great website?

 People: Who are our people and are there skills gaps?

 Partners: Are we seeking new partners and managing existing partners well?

The 7Ps helps companies to review and define key issues that affect the marketing of
its products and services and is often now referred to as the 7Ps framework for the
digital marketing mix.

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 An example of a company using the 7Ps strategy

Take a look at Hub Spot as an example, which was founded in 2006; Hub spot has
8,000+ customers in 56 countries and sells software. What does their marketing
mix look like?

This is a top level overview; you would take this into greater detail and ask the
following questions:

1. Products/Services: Integrated toolset for SEO, blogging, social media, website,

email and lead intelligence tools.

2. Prices/Fees: Subscription-based monthly, Software-As-Service model based on

number of contacts in database and number of users of the service.

3. Place/Access: Online! Network of Partners, Country User Groups.

4. Promotion: Directors speak at events, webinars, useful guides that are amplified
by SEO and effective with SEO. PPC Social media advertising, e.g. LinkedIn.

5. Physical Evidence: Consistent branding across communications.

6. Processes: More sales staff is now involved in conversion.

7: People: Investment in online services.

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8. Partners: Companies looks to form partnerships with major media companies such
as Facebook and Google plus.

Everything has a position in your mind, that you give a level of value to and as a
marketer it is your job to develop that position through your execution of these P’s
outlined above. Is your brand high quality and luxury? Then its priced high is
available only in exclusive areas and that addresses all these elements and how you
are going has exceptional customer service. If your brand is about value, then its
available everywhere, low prices and people will not expect much after sales service.

If you are creating a marketing strategy you need to take these 7 P’s and put together
a plan that addresses all these elements and how you are going to execute the
campaigns. Then with this strategy in place you can go online and dominate whatever
market that you want to.

If you think about Rolex, Versace suits or Rolls Royce, you instantly think of a super
high quality, luxury brand that people aspire to owning. And if I talk about EBay or
Amazon, you think of discounts, bargains and low prices.

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 1.4 LIMITATIONS OF THE STUDY
 People were not ready to fill in the questionnaire

 Many of the surveyed people did not reply all the questions.

 The time period given for study was very limited.

 The sample size was very small which is may not represent the entire
population of Indian women.

 Many of the people did not even know the working of a computer

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 1.5 OBJECTIVES OF THE STUDY

It’s really interesting to talk with business owners about the reasons why they want to
market themselves online. When you know your market and whom you serve, it is
easier to say exactly the right things that draw them in. Do not skimp on your image
almost everyone will tell you that they want to grow sales. Few will tell you
specifically how they will achieve it, what success looks like and what the metrics is
that set the boundaries. Certainly, we are biased that content is a tool for achieving
success, but when you take a step back, it is important to view the big picture so that
you can plan and execute with intentionality.

Online marketing has following core objectives:

1. Establish a Presence

2. Build Visibility

3. Generate Sales

4. Increase Revenue

5. Build A Brand

6. Improve Local SEO

Establish a Presence

Remember the old adage, ―You only get one chance to make the first impression?
―There is more truth in this than many realize. When building a website or a landing
page or your Face book page, consider the fact that your presence online might be the
very first impression that people have of you. How much more then do you want that

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impression to be the best? From a content perspective, the words on the page really
have to say something. Bring meaning, and resonate like you live in their closet.
When you know your market and whom you serve, it is easier to say exactly the right
things that draw them in. Do not skimp on your image. Invest like you did on that first
date. Remember how upset you got because those five hairs were out of place and
would not get in line? That passion is what is needed to build a great presence.

Visibility

A great presence doesn’t make you visible. People need to know that you are out
there. This often gets neglected. In talking with our friends at EBWAY, we learned
that their number one complaint from their clients is that their website doesn’t do
anything. We have heard similar stories from Matt Weeded MWD Web and Rob
Riggs at YDO.

It is work to get in front of folks. Blogging is a great example. The more blog posts
you write the more indexed pages that Google creates. This really makes you visible.
Also, do not neglect SEO. Yes, it takes a while, but it pays off in building your brand.
It’s a must have. Many people are still trying to figure out how to use Social Media,
and the bottom line is that you simply have to roll up your sleeves and commit.

Sales

Revenue must be there, right? It is amazing how many people do not enter into online
marketing with a plan for growing sales from their efforts. Even establishing goals
would be helpful. Once you set your basic objectives, you can develop a solid plan
that includes critical milestones, the timeframes associated with those milestones and
how you plan on achieving it all. This will help control your spend and allow you to
throttle up or down your online marketing efforts. The Internet is a great tool for
building that trust, because it has a wide reach and allows you to directly connect with
individuals. Social media is particularly useful when building a brand, because it
allows companies to create and post with a more personal feel.

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Increase Revenues

The primary goal of any marketing strategy is ultimately to increase revenue, and
Internet marketing is no exception. Thankfully, the Internet provides plenty of
opportunities for every business to improve their bottom line.

By combining search engine optimization, or SEO, with pay-per-click ads, or PPC,

your company can improve the chances that potential customers find you online. And
with strategies like content marketing and social media marketing, you can position
yourself as an expert in your field who also cares about your clients.

Build a Brand

Internet marketing objectives often include building a brand. This means not only
establishing your logo and company name in the minds of consumers, but also what
your company stands for. Well-known brands are typically trusted more by
customers, especially when paired with positive associations. The Internet is a great
tool for building that trust, because it has a wide reach and allows you to directly
connect with individuals.

Social media is particularly useful when building a brand, because it allows

companies to create and post with a more personal feel. Organizations have
discovered that this kind of brand-building can be fostered by the use of social media
channels such as Face book, Twitter, Instagram and Interest. In addition to organic
posts on these sites, companies can build brand recognition by paying for
advertisements and placements. This takes patience on the part of the organizational
leaders, because trust and loyalty are developed over many months, and sometimes
years. The key is to stay focused on the results.

Improve Local SEO

Many small businesses, as well as companies focused on increasing sales in specific

geographic region, focus much of their marketing efforts on improving their local
SEO. This means optimizing various elements on their sites in order to attract local
customers who are looking for the services they provide.

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Although the number of searches that include both your industry and your town or
city is undoubtedly lower than those that just specify a product or business type, those
searches tend to generate much more qualified traffic. If a user is already looking for
businesses where you are, chances are high that they’ll be willing to come to your
physical location.

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 CHAPTER II
2.1 REVIEW OF LITERATURE
This section aims at exploring detailed information on major domains of the
dissertation topic by reviewing past research, books and related articles. Modern
studies and past theories concerning these domains are presented.
Literature on online marketing:
Online services will drive marketing to the opposite end of the spectrum from ―mass‖
marketing to customized ―one-to-one‖ marketing. Online marketers communicate
instantly and directly with the prospective customers and can provide instant
fulfillment as well. Marketers with carefully designed World Wide Web sites are
already interacting computer to computer, with prospective customers or an individual
basis, much as ATM does in very primitive fashion. Online one to one approaches
while innovative and still glamorous in their pioneering aspects, offer significant new
challenges. The significant aspect is the access with the customers. Communication
and information technology development has encouraged the emergence of new
communication channels that have increased the options available to organizations for
building relationships with clients.

How important is Internet marketing to the success of an

organization?
There are no exact answers for this question. It depends on the nature of one company
business line. There are many companies currently using the Internet as their main
business transaction such as Amazon,flipkart,snapdeal,Alibaba .However, companies
such as UPM, the world’s leading forest products producer only uses the Internet as a
media to introduce the company and its products to customers via its website.
Besides that, during the whole purchasing decision making process, customers not
only use the Internet in isolation to search for products but other media such as print,
TV, direct mail and outdoor as well. These media still play an extremely important
role for the marketers to communicate with customers, for example, direct or face – to
– face marketing more or less helps marketers build up the trust in customers and
encourage them to purchase the products. Therefore, it is better to use the Internet as
part of a multi-channel marketing strategy which ―defines how different marketing

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channels should integrate and support each other in terms of their proposition
development and communication based on their relative merits for the customer and
the company.‖
Mohan Nair takes social media as a complex marriage of sociology and technology
that cannot be underestimated in its impact to an organization marketing
communication, choice as to when to engage, how to manage and measure, and
whether to lead or to follow is complex but not an impossible task. These cannot be
answered simply by one formula because the context and the market dynamics are
strong variables in these decisions. Even though the interest for social media is huge,
few companies understand what the term social media can mean to their businesses.

According to research conducted by Nielsen, we know that 92% of consumers report

that ―word-of-mouth and recommendations from people [they] know‖ are the leading
influence on their purchase behavior. Only 37% trust search engine ads, and just 24%
trust online banner ads. They trust their friends and family the most when looking for
brand recommendations.

It is important to understand the relationship between digital communication and

traditional communication in the old media; for example, TV, radio, newspapers,
magazines and billboard ads, the communication model was and is one-to-many
compared to one-to-one or many-to-many communication model in digital media like
blogs, social networks, wikis and other social media (Chaffey, 2003).

Foux (2006) suggests Social media is perceived by customers as a more trustworthy

source of information regarding products and services than communication generated
by organizations transmitted via the traditional elements of the promotion mix.

Johnson and Greco (2003) explain that desires and different hopes from different
clients can sometime require certain unique information and contact strategies.
Communication channels and strategies now differ broadly from the ones in former
times or offline times.

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Online marketing is today seen by many practitioners as the new arena for market
communication and on top of the list of users of the different mediums is Face book,
Blogs, Twitter, YouTube and LinkedIn (Steltzner, 2009).

Kaplan and Heinlein (2010) define social media as ―a group of Internet-based

applications that build on the ideological and technological foundations of Web 2.0,
which facilitates the creation and exchange of user-generated content. It consists of
different Internet applications such as blogs, social networking sites, content
communities, collaborative projects, virtual game worlds and social worlds. Russell S.
Winer (2009) affirms that many companies today are using some or all of the new
media to develop targeted campaigns that reach specific segments and engage their
customers to a much greater extent than traditional media.

Mangold&Faulds (2009) argue that marketing managers should comprise social

media in the communication mix when developing and executing their Integrated
Marketing Communication strategies and they presented the social media as a new
hybrid element of promotion mix.
Forbes Magazine reports retail is down and e-commerce is up. One clear example of
the power of e-commerce comes from Macy’s recent returns. Forbes reports the 154-
year-old retail chain saw online sales rise 40% in 2015 while same-stores sales grew
just 5.3%. Maybe you’re not a billion-dollar business like Macy’s, but the numbers
don’t lie. Online sales are overtaking retail sales. Safe to say e-commerce is trending
upward more and more each year. It’s not too late to jump onboard the e-commerce
train.

The internet has become a mass media vehicle for consumer sponsored
communication. It now represents the number one source of media for customers at
work and the number two source of media at home. Customers are turning away from
the traditional sources of advertising: radio, television, magazines, and newspapers.
Customers also consistently demand more control over their media consumption.
They require on-demand and immediate access to information at their own
convenience. Customers are turning more frequently to various types of social media
to conduct their information searches and to make their purchasing decisions.

30
Nowadays, the concept of Internet marketing has expanded and brought more
opportunities for companies to approach their customers. In the past, the Internet was
only used as a tool to contact customers, part of direct marketing. Nowadays, the
Internet, particularly websites has been becoming a popular media for any firms to
introduce their products and services. The Internet is considered as an independent
and effective marketing tool. During eight years, from 2008 to 2015, the number of
Internet users has increased by 4 times from about 361 million to more than 1, 46
billion (http://www.internetworldstats.com/stats.htm ), in which, Asia, the continent
with the biggest population accounts for 39.5% of World Internet Users. Thus
reaching such huge population in a quick time efficiently online marketing media and
online shopping organization had proved themselves as a major source. Integrated
Marketing Communication strategies and they presented the social media as a new
hybrid element of promotion mix. The internet has become a mass media vehicle for
consumer sponsored communication. It now represents the number one source of
media for customers at work and the number two source of media at home.. Thus
reaching such huge population in a quick time efficiently online marketing media and
online shopping organization had proved themselves as a major source. Customers are
turning more frequently to various types of social media to conduct their information
searches and to make their purchasing decisions and the communication mix when
developing and executing their Integrated Marketing Communication strategies and
they presented the social media as a new hybrid element of promotion mix proved to
effective way to communicate with digital world.

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 CHAPTER III
3.1 RESEARCH AND METHODOLOGY

Online marketing refers to a set of powerful tools and methodologies used for
promoting products, business, brandfactory,household businesses and services
through the Internet.

Online marketing includes a wider range of marketing elements than traditional

business marketing due to the extra channels and marketing mechanisms available on
the Internet.

Online marketing can deliver benefits such as:

 Growth in potential
 Reduced expenses
 Elegant communications
 Better control
 Improved customer service
 Competitive advantage

Research Methodology

The first step is to formulate a research design. This means planning a strategy of
conducting research. It is a detailed plan of how the goals of research will be
achieved. Research design is exploratory, descriptive and/or experimental in nature. It
is helping the investigator in providing answers to various kinds of social/economic
questions. After collecting and analysis of the data, the researcher has to accomplish
the task of drawing inferences. Only through interpretation researcher can expose
relations and processes that underlie his findings and ultimately conclusions.
Interpretation refers to the task of drawing inferences from the collected facts after an
analytical study.
In the present study, researcher has followed Descriptive research. Descriptive
research is usually a fact finding approach generalizing a cross - sectional study of
present situation. The major goal of descriptive research is to describe events,

32
phenomenon and situations on the basis of observation and other sources through
survey:

Survey Method:

The survey method is the technique of gathering data by asking questions from people
who are thought to have the desired information. Every effort should be made to state
the objectives in specific terms.

 The survey design can be defined as: ―gathering information about a large

number of people by interviewing a few of them

 The definition can be modified by stating that collecting information with

other data collection alternatives available to survey researcher in addition to

interviewing i.e. questionnaire, personal observation etc.

 Surveys are conducted in case of descriptive research studies with the help of

questionnaire techniques in most appropriate manner. Survey type of research

studies usually have larger sample. It is concerned with conditions or

relationships that exists, opinion that are held, processes that are going on

effects that are evident or trends that are developing. Thus in surveys variables

that exist or have already occurred are selected and observed. It is the example of

field research.

 The major goal of descriptive research is to describe events, phenomenon and

situations on the basis of observation and other sources through survey :

33
 3.2 RESEARCH PROBLEM

This study focuses on following problems

 Should companies integrate various marketing tools to communicate about its

brand?

 How do consumers get awareness about different brands?

 How online marketing plays important role in companies’ marketing strategy?

 What are the reasons for growing popularity of online marketing among
consumers?

 How is online marketing advantageous over traditional marketing?

 What are the loopholes in online marketing?

34
 3.3 HYPOTHESIS
Hypothesis of study In this highly competitive world, it is not only the quality of the
product or service but also effective utilization of online marketing channels is very
important. To satisfy the growing demands of consumers, to increase sales, retain
existing customers through online marketing, following Digital strategies and
consultancy services plays major role:

Display advertising:
Display advertising conveys its advertising message visually using text, logos,
animations, videos, photographs, or other graphics. Display advertisers frequently
target users with particular traits to increase the ads' effect.

Web banner advertising:

Web banners or banner ads typically are graphical ads displayed within a web page.
Banner ads can use rich media to incorporate video, audio, animations, buttons,
forms, or other interactive elements using Java applets, HTML5, Adobe Flash, and
other programs. Search Engine Optimization, or SEO, attempts to improve a website's
organic search rankings in SERPs by increasing the website content's relevance to
search terms. Search engines regularly update their algorithms to penalize poor
quality sites that try to game their rankings, making optimization a moving target for
advertisers. Many vendors offer SEO services.

Frame ad (traditional banner):

Frame ads were the first form of web banners. The colloquial usage of "banner ads"
often refers to traditional frame ads. Website publishers incorporate frame ads by
setting aside a particular space on the web page.

Pop-ups/pop-under:
A pop-up ad is displayed in a new web browser window that opens above a website
visitor's initial browser window. A pop-under ad opens a new browser window under
a website visitor's initial browser window.

35
Floating ad:
A floating ad, or overlay ad, is a type of rich media advertisement that appears
superimposed over the requested website's content. Floating ads may disappear or
become less obtrusive after a preset time period.

Expanding ad:
An expanding ad is a rich media frame ad that changes dimensions upon a predefined
condition, such as a preset amount of time a visitor spends on a webpage, the user's
click on the ad, or the user's mouse movement over the ad Expanding ads allows
advertisers to fit more information into a restricted ad space. The study was conducted
by the means of personal interview with respondents and the information given by
they were directly recorded on questionnaire. For the purpose of analyzing the data it
is necessary to collect the vital information

Interstitial ad:
An interstitial ad displays before a user can access requested content, sometimes
while the user is waiting for the content to load. Interstitial ads are a form of
interruption marketing.

Text ads:
A text ad displays text-based hyperlinks. Text-based ads may display separately from
a web page's primary content, or they can be embedded by hyper linking individual
words or phrases to advertiser's websites. Text ads may also be delivered through
email marketing or text message marketing. or the user's mouse movement over the
ad Expanding ads allow advertisers to fit more information into a restricted ad space.

Search Engine Marketing (SEM):

Search Engine Marketing, or SEM, is designed to increase a website's visibility in
search engine results pages (SERPs). Search engines provide sponsored results and
organic (non-sponsored) results based on a web searcher's query. Search engines often
employ visual cues to differentiate sponsored results from organic results. Search
engine marketing includes all of an advertiser's actions to make a website's listing
more prominent for topical keywords.

36
Search Engine Optimization (SEO):
Search Engine Optimization, or SEO, attempts to improve a website's organic search
rankings in SERPs by increasing the website content's relevance to search terms.
Search engines regularly update their algorithms to penalize poor quality sites that try
to game their rankings, making optimization a moving target for advertisers. Many
vendors offer SEO services.

Sponsored search:
Sponsored search (also called sponsored links or search ads) allows advertisers to be
included in the sponsored results of a search for selected keywords. Search ads are
often sold via real-time auctions, where advertisers bid on keywords. The study was
conducted by the means of personal interview with respondents and the information
given by they were directly recorded on questionnaire. For the purpose of analyzing
the data it is necessary to collect the vital information.

Mobile Advertising:
Mobile advertising is ad copy delivered through wireless mobile devices such as
smart phones, feature phones, or tablet computers. Mobile advertising may take the
form of static or rich media display ads, SMS (Short Message Service) or MMS
(Multimedia Messaging Service) ads, mobile search ads, advertising within mobile
websites, or ads within mobile applications or games (such as interstitial ads,
―averaging,‖ or application sponsorship). Search Engine Optimization, or SEO,
attempts to improve a website's organic search rankings in SERPs by increasing the
website content's relevance to search terms. Search engines regularly update their
algorithms to penalize poor quality sites that try to game their rankings, making
optimization a moving target for advertisers. Many vendors offer SEO services.

Email Advertising:
Email advertising is ad copy comprising an entire email or a portion of an email
message. Email marketing may be unsolicited, in which case the sender may give the
recipient an option to opt-out of future emails, or it may be sent with the recipient's
prior consent (opt-in).

37
Benefits of Online marketing:
Internet gives you a wide access of your potential customers. It has been estimated
that a couple of billion people around the world use the Internet, and more are
becoming aware of Internet with each passing day. So, marketing your business to
such a large group of people is only possible through Internet

 Internet is the only medium that is able to cross geographic and national
boundaries.

 The cost of promoting your business on the Internet is cheaper than other
mediums of marketing. This makes it easy for small and mid-sized businesses
to advertise their products.

 Internet allows the ability to stay connected with customers on a real-time

basis. If any discount going on, then it is easier to send an email to customers
and they can buy the product instantly. Internet also allows sending multiple
messages at the same time, which saves the tedious task of sending a
newsletter to every client.

 Internet marketing facilitates an instant feedback from the customers.

Customers can share about their experience after using the product.

 Internet marketing saves a lot of time and effort. Instead of having a customer
service representative to answer the queries of customers, one can put all the
information about the product or service on the Internet so that customers can
go through it. The most common way of doing it is to have a section dedicated
to frequently asked questions (FAQs) about the product so that customers get
all the required information about the product or the service.

 Internet marketing allows your business to be available 24/7, which means

increased sales and profits.

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Data Collection:
Data collection means to a purposive gathering of information relevant to the subject
matter of the study from the units under research. Primary data are empirical
observations gathered by the researcher or his associates for the first time for any
research and used by them in statistical analysis. There are several methods of
collecting primary data particularly in descriptive researches.

 Telephone enquiries

 Postal/mail questionnaire

 Personal interviewing

 Panel research

 Special survey techniques

Telephonic inquiries and mailing questionnaires are the best’s method for gathering
quickly needed information at the cheapest way.
Secondary Data:
Secondary Data is the data collected by others in the past and used by others. It may
be either being published or unpublished data. It includes the following:
1. Various publications of central, state and local governments.
2. Various publications of foreign governments or international bodies.
3. Technical and trade journals
4. Books, magazines, and new paper.
5. Reports prepared by research scholars, university economists etc.

Below section describes the World’s leading E-commerce /online shop platform :
Alibaba Group:
Alibaba Group Holding Limited is a Chinese e-commerce company that provides
consumer-to-consumer, business-to-consumer and business-to-business sales services
via web portals. It also provides electronic payment services, a shopping search
engine and data-centric cloud computing services.

39
Alibaba has been the most dominant retailer in the world, generating more gross
merchandise volume (GMV) than Amazon.com and eBay combined. Its online sales
& profits surpassed all US retailers (including Wal-Mart, Amazon and eBay)
combined in 2015.[9] It has been expanding into media and entertainment industry,
with revenues rising 3-digit percent year on year.

Alibaba Global Online Retail Portal

Amazon: Amazon.com, also called Amazon, is an American electronic commerce

and cloud computing company that was founded on July 5, 1994, by Jeff Bezos and is
based in Seattle, Washington. It is the largest Internet-based retailer in the world by
total sales and market capitalization. Amazon.com started as an online bookstore, later
diversifying to sell DVDs, Blue-rays, CDs, video downloads/streaming, MP3
downloads/streaming, audio book downloads/streaming, software, video games,
electronics, apparel, furniture, food, toys, and jewelry. The company also produces
consumer electronics—notably, Kindle e-readers, Fire tablets, Fire TV, and Echo—
and is the world's largest provider of cloud infrastructure services (IaaS and
PaaS).Amazon also sells certain low-end products like USB cables under its in-house
brand Amazon Basics.Amazon has separate retail websites for the United States, the
United Kingdom and Ireland, France, Canada, Germany, Italy, Spain, Netherlands,
Australia, Brazil, Japan, China, India, and Mexico. Amazon also offers international
shipping to certain other countries for some of its products. In 2016, Dutch, Polish,
and Turkish language versions of the German Amazon website were launched

40
 Amazon.com

Ebay

EBay Inc. is a multinational e-commerce corporation, facilitating online consumer-to-

consumer and business-to-consumer sales. It is headquartered in San Jose, California.
EBay was founded by Pierre Omidyar in 1995, and became a notable success story of
the dot-com bubble.

41
Above are the great examples of an efficient marketing of products digitally.
Today it is a multibillion-dollar business with operations in about 30 countries .The
company manages eBay.com, an online auction and shopping website in which
people and businesses buy and sell a broad variety of goods and services worldwide

42
 3.4 HYPOTHESIS TESTING
(H0): The type of digital marketing has no impact on consumer decisions.

(H1): The type of digital marketing has a positive impact on consumer decisions.

For the purpose of testing this hypothesis, the Wilcoxon Signed Ranks test as well as
the two sample sign test was used. It is necessary to employ nonparametric testing in
both circumstances. According to the findings of this study, both traditional and
online purchases had a substantial influence on the amount of weight that was
assigned to each option. Based on a survey size of 500 respondents, the mean score
for traditional shopping is 54.25, which is lower than the mean score of 57.04 for
online purchasing. Thus, clients are more inclined to make electronic transactions
than traditional ones, according to this data. However, the standard deviation of
traditional purchases is much larger than the standard deviation of e-purchases. In
light of this research, we may infer that consumer are changing their buying habits
more often in traditional purchasing than in E-purchasing, as shown by the data.

The internet has had a significant impact on the consumer sector in India. When we
look at the data, we find that the general trend toward online buying is a bit shaky, to
say the least. Because customers prefer traditional means and are more comfortable
with their purchases, their purchasing choices on the internet have little impact on
their thinking. According to the results of a study of catalogue users, buyers who use
the internet to make purchases prefer the information included in catalogues. On the
internet, consumers may compare their choices, and traditional marketing practises
have nothing in common with this. One of the most distinguishing characteristics of
internet marketing is that it is fully self-sufficient. According to the results of the
statistical study, more individuals in various cities in Gujarat prefer to purchase online
than in other cities in the state. A very significant association exists between 8
Inspire- Journal of Commerce, Economics & Computer Science: Volume 08, No. 02,
April-June, 2022 online and in-store purchasing decisions. Customer demand for
electronic catalogues is growing in contrast to conventional paper catalogues, which
are becoming more popular with consumers seeking product and service information.
The internet has surpassed traditional brick and mortar stores as the most preferred
means of purchasing goods and services. Because of this, internet-based businesses
are poised for significant growth in the foreseeable future.

43
 3.5 METHOD OF DATA COLLECTION

The study was conducted by the means of personal interview with respondents and
the Information given by them was directly recorded on questionnaire. For the
purpose of analyzing the data it is necessary to collect the vital information.

There are two types of data, this are-

 Primary Data

 Secondary data

COLLECTION TECHNIQUE:

 Primary Data

Questionnaire method

 Secondary Data

 Books

 Journal

 Website

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 3.6 MEASUREMNENT AND SCALLING TECHNIQUES

The measurement and scaling technique help us to:

 explain the concepts of measurement and scaling,

 discuss four levels of measurement scales
 classify and discuss different scaling techniques
 select an appropriate attitude measurement scale for our research problem

Before we proceed further it will be worthwhile to understand the following two

terms: (a) measurement, and (b) scaling.

a) Measurement: measurement is the process of observing and recording the

observation that are collected as part of research. The recording of the observations
may be in terms of numbers or other symbols to characteristics of objects according to
certain prescribed rules. The respondents characteristics are feeling, attitudes,
opinions etc. the most importance aspect of measurement is the specification of rules
for assigning numbers to characteristics. The rules assigning numbers should be
standardized and applied uniformly. This must not change over time or objects.

B) Scaling: scaling is the assignment of objects to numbers or semantics according to

a rule. In scaling, the objects are text statements, usually statements of attitude,
opinion or feeling.

45
 3.7 SAMPLE DESIGN
A Sample Design is a definite plan for obtaining a sample from a given population. It
Refers to the technique to the procedure adopted in selecting items for the sampling
designs are as below:
Types of research study (pending)

SAMPLE SIZE:
The substantial portions of the target customer that are sampled to achieve reliable
Result are 100.
Universe
Online Shoppers of India

SAMPLING METHOD:
 Non-probability sampling method : Convince Sampling
SAMPLE TECHNIQUE:
 Percentage analysis

 Tabulation

 Graphical

 Average mean

Exploratory research study is also termed as formative research studies. The main
purpose of such study is that of formulating a problem for more precise investigation
roof developing a working hypothesis from an operational point of view. The major
emphasis of such studies is of the developing of discovery of idea and insight.

46
 3.8 STATISTICAL TECHNIQUES

How big is the digital marketing industry?

The global digital advertising and marketing market was estimated at $350 billion in
2020 and is projected to reach $786.2 billion by 2026.

The U.S. digital advertising and marketing market is currently estimated at $460
billion.

What is the growth rate of digital marketing?

 The compound annual growth rate of digital marketing from 2020-2026 is

projected at 9%.
 Digital display is projected to grow at a 15.5% CAGR, while search is
projected to grow at 12.2%. Search accounts for 40.9% of the global digital
advertising and marketing market.
 63% of businesses have increased their digital marketing budgets just this past
year.
 Between 2020 and 2021, there was a 14% growth rate in digital marketing
budget spending across businesses.

What is the success rate of digital marketing?

There is no one-size-fits-all answer to this question, but here are some stats to help
point you in the right direction.

 PPC returns $2 for every $1 spent—resulting in a 200% ROI.

 Paid ad channels with the highest reported ROI rate are Facebook Ads and
Google Ads.
 49% of businesses say that organic search brings them the best marketing
ROI.
 Email marketing returns $36 for every $1 spent.
 Small businesses claim that email marketing is the marketing channel that
brings them the highest return on investment.
 Over 20% of businesses say that the number of leads generated is the
primary factor they base the success of their marketing channels.

47
  Content marketing and SEO provides the best ROI according to marketers
in this Data box.

What percent of marketing is digital?

 72% of overall marketing budgets get put towards digital marketing

channels.
 55% of marketing is digital. Total digital advertising spend in 2021 was
$436 billion versus offline advertising at $196 billion.

Digital marketing in demand in 2023

 According to the Bureau of Labor Statistics, marketing job demand is set

to increase by 10% by 2026—above the average for all careers.
 Customer marketing managers and search marketing managers are both in
CNBC’s list of the 10 fastest-growing jobs in the US 2022.

Digital marketing statistics

 The average local business puts 5-10% of its revenue towards its digital
marketing budget, but for larger businesses, that number can climb to
about 14%.
 People spend 50% more with businesses that regularly respond to reviews.
 93% of people read online reviews before making a purchase.
 Consumers can spend up to 5x longer on a site once they’ve interacted
with bad reviews.
 Google holds 92% of the total worldwide search engine market share.

48
  45% of shoppers buy online then pick up in-store.
 Three-quarters of businesses are reporting on how their marketing
campaigns are directly influencing overall revenue.

52% of businesses are using marketing attribution reporting.

62% of marketers use a CRM software for reporting.

How effective is online advertising?

 Digital ads can increase brand awareness by 80%.

 Consumers are 155% more likely to look up your brand-specific terms
after they’ve been exposed to display ads.
 Customers are 70% more likely to make a purchase from a retargeting ad.
 PPC returns $2 for every $1 spent—a 200% ROI.
 When someone conducts a search after initially seeing a related display ad,
the likelihood of them converting is 59%.
 A user’s search activity rises 155% after being served a display ad.
 27% of consumers conduct a search for a business after seeing their
display ad.
 PPC generates double the number of website visitors that SEO brings in.
 Paid ad channels with the highest reported ROI rate are Facebook ads and
Google Ads.

More online advertising statistics

Before you spend a penny on online advertising, be sure to check out these PPC
stats.

 For search ads, here are some industry benchmarks to keep in mind:
 The average click-through rate across all industries for Google Ads is
18%.
 The average cost per click across all industries is currently $3.53.
 The average cost per acquisition across all industries is $41.40.
 The average conversion rate across all industries is 82%.

49
  Digital ad fraud cost US advertisers $15.9 billion just this past year.
 Less than 20% of marketers use landing page A/B tests to improve
conversion rates. Not sure what to test? Get some inspiration from these
landing page examples.
 About 70% to 80% of people completely ignore paid digital ads. Be sure
yours stand out with compelling ad copy that speaks to your target market.

More social media marketing statistics

 The average US adult spends over 2 hours on social media every day.
 91% of consumers access social media sites from a mobile device. This
means you’ll want to be sure your mobile marketing strategy includes
social media.
 Nearly half of social media users rely on brand recommendations from
influencers. Check out our influencer marketing breakdown to see how
you can take advantage of this trend.
 Less than 5% of businesses use Facebook video ads, so this is a major
opportunity for brands looking to stand out.
 90% of Instagram users follow at least one business on the platform.
 Over 80% of B2B businesses use Twitter for organic social media
marketing and Twitter ads.
 There are 265 million daily active Snapchat users, and they’re opening the
app more than 30 times per day.
 Snapchat users are more likely to buy products or services from their
mobile device. They’re also 60% more likely to make impulse purchases.
 The average swipe-up rate for Snapchat ads is 50% and the average cost
per swipe is just $.30-$1.00.
 The social media platform that is most trusted by US consumers is
LinkedIn.
 80% of B2B businesses use LinkedIn Advertising, and 96% of B2B
content marketers use LinkedIn for organic social media marketing.
 30% of the avage business’s engagement on LinkedIn comes from its
employees.

50
 LinkedIn Ads is a leading platform for audience targeting with over 200
targeting characteristics marketers can choose from.
 95% of Pinterest users have the app to help them plan or make a purchase.
In fact, 52% of Pinterest users have seen something on the app and made
the purchase online later.
 64% of consumers watching branded videos on social media made a
purchase after.

51
 CHAPTER-IV

4. DATA ANALYSIS & INTERPRETATION

With the increasing internet literacy, the prospect of online marketing is increasing in
India. The consumers indulging in online shopping consider many factors. If
companies analyze the factors affecting consumer behavior towards online shopping
and the relationships between these factors and the type of online buyers, then they
can devise effective marketing strategies to convert potential customers into active
ones, while retaining existing online customers. This project is a part of study, and
focuses on factors which online Indian buyers keep in mind while shopping online.

This research found that information, perceived usefulness, ease of use; perceived
enjoyment and security/privacy are the five dominant factors which influence
consumer perceptions of online purchasing. With the increasing internet literacy, the
prospect of online marketing is increasing in India. The consumers indulging in online
shopping consider many factors. If companies analyze the factors affecting consumer
behavior towards online shopping and the relationships between these factors and the
type of online buyers, then they can devise effective marketing strategies to convert
potential customers into active ones, while retaining existing online customers. This
project is a part of study, and focuses on factors which online Indian buyers keep in
mind while shopping online.
This research found that information, perceived usefulness, ease of use; perceived
enjoyment and security/privacy are the five dominant factors which influence
consumer perceptions of online purchasing.
The two perspectives that seek application of its knowledge are micro and societal
Perspectives. The micro perspectives involve understanding consumer for the purpose
of helping affirm or organization to achieve its objectives. The people involved in this
field try to understand consumers in order to be more effective at their tasks. Whereas
the societal or macro perspective applies knowledge of consumers to aggregate- level
faced by mass soar society as a whole. The behavior of consumer has significant
influence on the quality and level of the standard of living.
Throughout the project we will see that how Kemrock Industries and Online Shopping
Study consumer behavior. How they approach in the new market, what are the

52
problems faced by them while accepting local culture and customs, how they compete
with the local competitors how they respond to the customers’ behavior towards their
products and services. I have developed a survey indicating online shopping behavior
and acceptance among customers in India.

Online Shopping In India:

It is a fact that a great online shopping revolution is expected in India in the coming
Years. There is a huge purchasing power of a youth population aged 18-40 in the
urban area.
If we observe the growth of Internet Subscribers from the above graph, it is getting
doubled year by year. The usage of internet in India is only 4% of the total population.
This is also getting increased day by day as the costs of computers are decreasing and
net punter action is increasing. The micro perspectives involve understanding
consumer for the purpose of helping firm or organization to achieve its objectives.
The people involved in this field try to understand consumers in order to be more
effective at their tasks. The cost of internet usage is also getting lower, with good
competition among the providers. Wi-Fi &Wimax system has also started in India.
According to Miyazaki and Fernandez (2015), perceived risk affected consumer
online purchasing behavior negatively. They also found that Internet experience is
negatively related to the existence of concerns regarding the privacy and security of
online purchase and the perceived risks of conducting online purchases.
The behavior of consumer has significant influence on the quality and level of the
standard of living. Throughout the project we will see that how Kemrock Industries
and Online Shopping Study consumer behavior.

53
Factors That Boost Online Shopping in India:
Rapid growth of cybercafés across India access to Information the increase in number
of Computer users reach to net services through broadband middle-class population
with spending power is growing. There are about 200 million of middle- class
population good spending powers. These people have very little time to spend for
shopping. Many of them have started to depend on internet to satisfy their shopping
desires.
Factor Influencing Online Shopping Behavior:
There are a lot of researches about online shopping. Most studies intended to
investigate factors affecting consumers' purchasing behavior on the Web.
Swaminathan,Lepkowska-White, and Rao (2014) preferred vendor characteristics,
security of transactions, content for privacy, and customer characteristics as factors
influencing electronic exchange. Wolfinbarger and Gilly suggested that consumers
purchase and shop online with both reasons: goal-oriented and experience-oriented.
According to Miyazaki and Fernandez (2015), perceived risk affected consumer
online purchasing behavior negatively. They also found that Internet experience is
negatively related to the existence of concerns regarding the privacy and security of
online purchase and the perceived risks of conducting online purchases. Donthu and
Garcia (2015) proposed that risk aversion, innovativeness, brand consciousness, price
consciousness, importance of convenience, variety-seeking propensity, impulsiveness,
attitude toward adverting, attitude toward shopping, and attitude toward direct
marketing would influence online shopping behavior and found that among them, age,
income, importance of convenience, innovativeness, risk aversion, impulsiveness,

54
variety-seeking propensity, attitude toward direct marketing, and attitude toward
advertising were factors influencing online shopping behavior. Li, Kuo, and Russell
(2015) found that "Consumers who make online purchase perceive the Web to have
higher utilities in communication, distribution, and accessibility than those who do
not make online purchases, and frequent online purchases perceive higher utility than
occasional online purchasers" and "Consumers who make online purchases consider
themselves more knowledgeable about the Web as a channel than those who do not
make online purchases, and frequent online buyers consider themselves more
knowledgeable than occasional online buyers." According to Jarvenpaa, Tractinsky,
and Vitale (2016), perceived size, perceived reputation, trust in store, attitude, and
risk perception would be factors affecting online purchasing behavior.
Considering the prior studies, this study selected several factors below in order to
explain what influences consumer online purchasing behavior.

 Demographics (Age, Income, Gender, and Education)

 Perceived Risk

 The Reputation of Retailers

 Consumer Orientations (Convenience-oriented and Experience-oriented)

 Price

Consumer choice behavior in online and traditional supermarkets:

The effects of brand name, price, and other search attributes Are brand names more
valuable online or in traditional supermarkets? Does the increasing availability of
comparative price information online make consumers more price-sensitive? We
address these and related questions by first conceptualizing how different store
environments (online and traditional stores) can differentially affect consumer
choices. We use the liquid detergent, soft margarine spread, and paper towel
categories to test our hypotheses. Our hypotheses and the empirical results from our
choice models indicate that: (1) Brand names become more important online in some
categories but not in others depending on the extent of information available to and
Consumer’s brand names are more valuable when information on fewer attributes is
also made Available online. Sensory search attributes particularly visual cues about
the product to be in (e.g., paper towel design), have lower impact on choices online,

55
and factual information also (i.e., non-sensory attributes, such as the fat content of
margarine) have higher impaction choices online. (3) Price sensitivity is higher
online, but this is due to online promotions being stronger signals of price discounts.
The combined effect of price and promotion on choice is weaker online than offline.

Analysis Objective

 To find out the factors affecting the online shopping behavior.

 To study the behavior of online shopping

 To study the factor important while using the online shopping.

 To study the Satisfaction level of online shopper.

Research design specifies the methods and procedures for conducting a particular
study. The main purpose of such study is that of formulating a problem for more
precise investigation or of developing a working hypothesis from an operational point
of view. A research design is the arrangement of conditions for collection and analysis
of the data in a manner that aims to combine relevance to the research purpose with
economy in procedure. Research design is broadly classified into three types as

 Exploratory Research Design

 Descriptive Research Design

 Causal Research Design

I have chosen the exploratory research design.

1. Last time made a purchase over the internet. The study was conducted by the
means of personal interview with respondents and the information given by they were

56
directly recorded on questionnaire. For the purpose of analyzing the data it is
necessary to collect the vital information.

Interpretation
According to survey Last time made a purchase over the internet
9 respondent says that last week,17 says last 15days,34says last month and 40 says
last year. Items have you purchase on the internet. The study was conducted by the
means of personal interview with respondents and the information given by they were
directly recorded on questionnaire. For the purpose of analyzing the data it is
necessary to collect the vital information.

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Interpretation
According to survey 80% respondent has purchased ticket while 8% preferred
clothing. Other like Books 10%, Video games 25%, electronic
equipment18%Computer& software12% and music 20%.

3. Mode of payment

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Interpretation
According to survey 27 respondents make payment through Credit cards, 10 Debit
cards, 8
Online Bank transfer and 55 online cash payment out of 100.

Factor affecting online shopping:

4. Information about product and Services

Average Score of respondent = (10*1+16*2+3*18+4*24+5*32)/100=352/100=3.52

Interpretation
According to all score, it can be interpreted that information about product and service
is an important factor while using online shopping.

5. Time saving

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Average Score of respondent = 350/100 =3.50(same as early calculate)

Interpretation
According to this score, it can be interpreted that time saving can be consider as an
important factor while using online shopping. The study was conducted by the means
of personal interview with respondents and the
Information given by them was directly recorded on questionnaire. For the purpose of
analyzing the data it is necessary to collect the vital information.

6. Convenience

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Interpretation
Bum According to this score, it can be interpreted that convenience in online
shopping is an important factor. The study was conducted by the means of personal
interview with respondents and the information given by they were directly recorded
on questionnaire. For the purpose of analyzing the data it is necessary to collect the
vital information.

6. Delivery time and mode of payment

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Interpretation
According to this score, it can be interpreted that Delivery time and mode of payment
in online shopping is an important factor

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 CHAPTER-V
5. SUMMARY & FINDING
The main research question that guided the study was as follows: How can small
business owners develop and implement a successful Internet marketing strategy? I
used semi-structured interviews to gain an understanding of how small business
owners developed and implemented an Internet marketing strategy. In addition to
semi-structured interviews, I reviewed companies’ online marketing presence such as
social media pages, company website and search engine rankings. I also evaluated
their online marketing materials such as ads and email templates as well as web
analytics. I scheduled the 62 interviews in participants’ places of business in a private
meeting room. Interviews lasted approximately 60 minutes. Following the
compilation and analysis of data collected through semi-structured interviews and a
review of company documents, five themes emerged. The five main themes
encompassed, (a) unstructured planning, (b) limited Internet marketing knowledge
and expertise, (c) use of Internet marketing channels and tools, (d) lack of systematic
approach to the management of Internet marketing, and (e) inadequate measurement
of Internet marketing efforts. I will provide an overview of each case before
describing the five themes. Each small business evaluated in this study operated in a
different industry, had varied Internet marketing goals, and possessed distinct
resources. The case overviews include description of the business, owner’s
experience, target audience, Internet marketing goal, marketing budget, channel mix,
management of online marketing, Internet marketing tools, and Internet marketing
performance. The conceptual framework of this research project was RBV. RBV
helps to understand how firms leverage their investments in online marketing to
develop capabilities that are valued, rare, inimitable and non-substitutable (Barney,
1991). Internet marketing capabilities and resources can provide a competitive
advantage to the firm and positively influence the firm’s performance. I will discuss
the findings as they relate to the conceptual framework and the presentation of the
emergent themes.

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 CHAPTER-VI
6. RECOMMENDATIONS & SUGGESTION
Consumers should be educated on online shopping procedures with proper steps to be
following while online shopping.
 Transactions should be safe and proper security should be assured to the
people making online purchases.
 Government should play a pivotal role in encouraging online shopping
 E-marketers must give a thought to secure, time saving, information about
product and services factors when they design there online product strategy.
 The study highlights that convenience, accessibility, scope, attraction,
reliability, experience and clarity are the important factors considered by the
online shopper.
 Usage of internet includes the consumer’s purchase of product as well as the
consumer intention to secure for product related information while
experiencing the new technology.

 Banking should promote Debit card, Credit card facility in online shopping.

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 CHAPTER-VII

7. CONCLUSION

 The most preferred product of online buying is travelling tickets and clothing
remains the least preferred choice of online shoppers.
 Among the payment options, Payment on delivery through cash in the safest
choice of payment, while credit card are next preferred choice, online bank
transfer is least preference choice.
 Online shoppers seek for clear information about product and service,
timesaving, convenience, security and delivery on time are all important factor
for online shopping. The offers with punch lines ―Attractive offers‖ do not
attract online shoppers.
 Most of the consumers who have experienced online shopping are very
satisfied.

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 CHAPTER-VIII

8. BIBLOGRAPHY

 Book: The Art of Digital Marketing by IAN DODSON

 Book: Digital Marketing by VANDANA AHUJA
 WILLIAM G. ZIKMUND, (Business research method), published by
THOMSON, SOUTH WESTERN, 2006, 5TH EDITION.
 S.A. CHUNAWALA , (Foundation of advertising), Himalaya publishing
house , 2008 7th edition
 The Michael Jordan phenomena, journal of advertising research. Indian
streams research journal- Dr. G.l.pedhiwal.

 www.wikipedia.com

 www.techopedia.com

 www.webopedia.com

 www.flipkart.com

 www.facebook.com

 www.snapdeal.com

 www.naaptol.com

 www.limeroad.com

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 CHAPTER-IX

9. ANNEXURE

9.1 QUESTIONNAIRE

Respondent’s details
Name: ______________________________________ (optional)

Gender: Male ( ) Female ( )

Occupation:
Student ( )
Service ( )
Self-employed ( )
Age: Between 18 to 25 ( )
Between 25 to 35 ( )
Between 35 to 45 ( )
Contact detail ;_________________________________( optional)
(Please tick √ in the box besides option/s matching your response)

Q1.Which of these websites has you already used or visited?

(Several answers possible)
*For the Respondent - The different possible answer choices are presented in
random order.
Amazon
EBay
ebuyer
I have never used or visited any of these websites
*Filter forwarding to the associated page:
If the respondent has never used or visited Amazon, the respondent is
forwarded to the conclusion
*Next step for the respondent: Next Page
2. Page 1

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Back to summary
This short survey looks at a number of questions which are mainly related to
people's online shopping experiences. Please complete it in full for your
submission to be valid.
Q2.Where do you mostly use the Internet?
At home
At work
Other, please specify:
Q3.What is your main purpose for using the Internet?
Shopping
Work
Education
Hobby
Q4.How much do you spend on average for Retail shopping per month in GBP
(High Street / Malls etc.)?
£0 - £30
£30 - £90
£90 - £120
£120 +
*Next step for the respondent: Next Page
3. Page 2
Back to summary
Q5.How much do you spend on Online shopping per month in GBP (Website
Shopping)?
I never buy online
£0 - £30
£30 – 90
£90 - £120
£120 +
*Filter forwarding to the associated page:
If the respondent never buys online, the respondent is forwarded to page 4
*Next step for the respondent: Page 5
4. Page 3
Back to summary

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Q6.What is the reason you have never bought online?

*Next step for the respondent: Next Page

5. Page 4
Back to summary
Q7.How would you rate your Internet connection?
Bad
Good
Very good
Excellent
Q8.What type of Internet Connection do you use?
Broadband
Dial-up
Mobile devices
Other, please specify:
Q9.What is your favourite E-commerce website? and why?

Q10.How often do you visit www.amazon.co.uk?

Daily
Weekly
Monthly
Annually

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 9.2 SAMPLE OF SERVEY

 Brand Awareness
 Business to Business
 Customer Comments
 Customer Satisfaction
 Customer Service Feedback
 Customer Support
 Firmographics
 Market Research – Product
 Market Research – Service
 Market Research
 Media Usage
 Household Budget
 Net Promoter® Score (NPS)
 NPS and Brand Loyalty
 Online Content Strategy
 Online Social Networking
 Retail Customer Feedback
 Software Evaluation
 Target Market Analysis
 Target Market Demographics
 Typical Customer Analysis
 Typical Customer Demographics
 U.S. Demographics – Snapshot
 U.S. Demographics
 Website Design Feedback

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