A STUDY ON CONSUMER BUYING BEHAVIOUR IN DIGITAL MARKETING

WITH SPECIAL REFERENCE TO ORAGADAM

A Project Report submitted to the SRM Institute of Science and Technology in partial fulfilment of
the requirements for the award of the Degree of

BACHELOR OF COMMERCE

Submitted by

JOSHNA P

(Reg. No. RA1831201020323)

Under the Guidance of

DR.C. SAHILA M.COM., M.PHIL., MBA., PH.D.,

Assistant Professor
Department of Commerce

SRM Institute of Science and Technology – Ramapuram Campus

Faculty of Science and Humanities
Department of Commerce APRIL
2021
 SRM Institute of Science and Technology – Ramapuram Campus
Faculty of Science and Humanities
Department of Commerce
Certificate

This is to certify that the Project Report entitled “A Study on consumer buying behaviour in
digital marketing with special reference to oragadam”, in partial fulfilment of the requirements for
the award of the Degree of Bachelor of Commerce is a record of Project Work undergone by Ms. Joshna
P (Reg.No. RA1831201020323) during the year 2020 - 21 of his study in the Department of Commerce,
SRM Institute of Science and Technology, Ramapuram Campus under my supervision and the report
has not formed the basis for the award of any Degree/Fellowship or other similar title to any candidate
of any University.

Place: Chennai – 89

Date: Signature of the Guide

FACULTY GUIDE NAME & QUALIFICATION

Countersigned

Dr. A. JAYABAL , M.Com., M.Phil.,B.Ed., Ph.D.,

Professor & Head

Submitted to the Department of Commerce, SRM Institute of Science and Technology (Ramapuram
Campus) for the examination held on

INTERNAL EXAMINER EXTERNAL EXAMINER

 DECLARATION

I, Joshna P , hereby declare that the Project Report, entitled “A Study on consumer buying
behaviour in digital marketing with special reference to oragadam”, submitted to the SRM
Institute of Science and Technology in partial fulfilment of the requirements for the award of the
Degree of Bachelor of Commerce is done by me during the period 2020 - 21 under the supervision
and guidance of DR.C. SAHILA M.COM., M.PHIL., MBA., PH.D., Assistant Professor (O.G.),
Department of Commerce, SRM Institute of Science and Technology, Ramapuram Campus and it has
not formed the basis for the award of any Degree/Fellowship or other similar title to any candidate of
any University.

Place: Chennai – 89 Signature of the Student

Date:
 ACKNOWLEDGEMENT

First and foremost, I offer my sincerest gratitude to our Chancellor, SRM Institute of Science
and Technology, for his academic support and the facilities provided to carry out the project work at
the Institute. His wide vision and concern for students have been inspirational.
I wish to express my profound gratitude to my venerable Chairman, SRM Group of
Institutions-Ramapuram & Trichy Campuses, who offered me such a huge opportunity, incredible
Infrastructure and other support which made the project work quite smooth.
I express my heartfelt thanks to our Dean, Vice Principal (Academic) and Vice Principal
(Admin), Faculty of Science and Humanities, SRM Institute of Science and Technology, Ramapuram
Campus who provided all facilities for carrying out this project.

I immensely thank to our Head of the Department Dr.A.JAYABAL,M.com., M.Phil., B.Ed.,

Ph.D., Professor & Head, for his cordial support, valuable information and guidance, which helped me
in completing this task through various stages. The blessing, help and guidance given by him time to
time shall carry me a long way in the journey of life on which I am about to embark.
I take this opportunity to express my profound gratitude and deep regards to my guide
DR.C.Sahila M.Com., M.Phil., MBA., Ph.D Assistant Professor (O.G.), for her exemplary guidance,
monitoring and constant encouragement throughout the course of this project.
I thank God Almighty for showering his perennial blessing on me for giving me the courage to
pursue this project work successfully. I owe a lot to my parents, who encouraged and helped me at
every stage of my personal and academic life, and longed to see this achievement come true.

Place: Chennai – 89.

Date:
(Student Name)
 LIST OF CONTENTS

CHAPTER NO. PARTICULARS PAGE NO.

1 INTRODUCTION

2 COMPANY PROFILE

3
A) REVIEW OF LITERATURE
B) RESEARCH METHODOLOGY
ANALYSIS AND INTERPRETATION OF DATA
4

FINDINGS, CONCLUSION AND

5 SUGGESTIONS

BIBLIOGRAPHY
ANNEXURE
QUESTIONNAIRE
 LIST OF TABLES

Table No. Title Page No.

4.1 Table showing distribution of get to know about the information

of new products by respondents.
4.2 Table showing distribution of whether the respondents collect
information before the purchase.
4.3 Table showing distribution of what type of information
respondents collect.
4.4 Table showing distribution of respondents whether they have
purchased from online.
4.5 Table showing distribution of type of product/service
respondents purchase from online.
4.6 Table showing distribution of respondents watching television.

4.7 Chart showing distribution of respondents watching television

through online.
4.8 Table showing distribution of respondents who read newspaper.

4.9 Table showing distribution of respondents of who read

newspaper through online.
4.10 Table showing distribution of respondents who have mobile
phones.
4.11 Table showing distribution of respondents who have laptop or
PC.
4.12 Table showing distribution of respondents who have tablet.

4.13 Table showing distribution of respondents who have internet

connection with gadgets.
4.14 Table showing distribution of respondents when they use the
gadgets.
4.15 Table showing distribution of respondents what they do with the
gadgets.
4.16 Table showing distribution of respondents whether they notice
advertisement.
4.17 Table showing distribution of respondents from where do they
notice the advertisement.
4.18 Table showing distribution of respondents give more importance
to form of media.
4.19 Table showing distribution of respondents how do they purchase
a product.
4.20 Table showing distribution of respondents what type of
experience they share with others.
4.21 Table showing distribution of respondents how they share
experience with others.
 LIST OF CHARTS

Table No. Title Page No.

4.1 Chart showing distribution of get to know about the information

of new products by respondents.
4.2 Chart showing distribution of whether the respondents collect
information before the purchase.
4.3 Chart showing distribution of what type of information
respondents collect.
4.4 Chart showing distribution of respondents whether they have
purchased from online.
4.5 Chart showing distribution of type of product/service
respondents purchase from online.
4.6 Chart showing distribution of respondents watching television.

4.7 Chart showing distribution of respondents watching television

through online.
4.8 Chart showing distribution of respondents who read newspaper.

4.9 Chart showing distribution of respondents of who read

newspaper through online.
4.10 Chart showing distribution of respondents who have mobile
phones.
4.11 Chart showing distribution of respondents who have laptop or
PC.
4.12 Chart showing distribution of respondents who have tablet.

4.13 Chart showing distribution of respondents who have internet

connection with gadgets.
4.14 Chart showing distribution of respondents when they use the
gadgets.
4.15 Chart showing distribution of respondents what they do with the
gadgets.
4.16 Chart showing distribution of respondents whether they notice
advertisement.
4.17 Chart showing distribution of respondents from where do they
notice the advertisement.
4.18 Chart showing distribution of respondents give more importance
to form of media.
4.19 Chart showing distribution of respondents how do they purchase
a product.
4.20 Chart showing distribution of respondents what type of
experience they share with others.
4.21 Chart showing distribution of respondents how they share
experience with others.
 CHAPTER – 1
INTRODUCTION
1.1 CONSUMER BEHAVIOUR
Consumer behaviour is the process or way by which products and services are consumed, it
includes the consumer's emotional, mental, and behavioural responses.

The study of consumer behaviour involves individual quality, such as demographics and other
elements. Marketers expect that by understanding what makes a consumer buy particular goods
and services, they will be able to determine what product is demanded by the consumer and what
is old-fashioned. The consumer's role may vary in different situations; for example, a mother plays
the role of an influencer in a child's purchase process.

Given below are the popular definitions of consumer behaviour.

As per the definition given by Engel, Blackwell, Mansard, "A consumer behaviour is the
process of decision making and action while consumer goods or services for personal use.
"Another definition is given by Louden and Bitta, "Consumer behaviour is the process and physical
activity, which individuals engage in evaluating, using or disposing of product or services."

According to Blech and Blech, "Consumer behaviour is the process and activity which
involves people when searching for, selecting, evaluating, using, and disposing of product or
services to satisfy their needs and desire.”

Consumer behaviour refers to the buying behaviour of the ultimate or end consumer. The
behaviour of human beings as consumers is complex. Marketers’ understanding of the drivers of
consumers’ buying behaviour will help them to serve their customers effectively and efficiently,
and attract new ones.

Consumers’ shopping behaviour can be understood by analysing the factors that affect the
exercise. These factors could be demographic, psychological, environmental, or related to the
lifestyle of the customer. It is equally important for the retailer to identify the various stages in the
consumer decision-making process and the major influences at each stage. This would make
possible an effective retail marketing strategy. Take for instance, the case of retailers Saravana
Stores and Shoppers Stop in Chennai. Both of them are regarded as success stories in their own
right. Even though they both deal in broadly the same kind of product categories, the images of
the two stores and the clientele they target are greatly influenced by their understanding of the
tastes and psyche of their buyers.
 Shoppers Stop’s outlets are air-conditioned, well maintained, and have inviting store
displays. Their advertising campaign is considered to be one of the best in the industry and the
staff is well dressed and articulate. They have good loyalty programmes, and their service is
reasonably quick and efficient. They have spacious, pleasant cafes with a variety of different
snacks and beverages from leading brands. On the other hand, Saravana Stores has a lower middle-
class clientele and does not pay much attention to the ambience. The exterior of the outlet wears
an old look. Goods are piled on the top of one another (sofas, plastic chairs), or displayed all along
the wall (garments, textiles).

The indifferent service atmosphere suits the customers very well. It also means that no one
will interfere while they inspect the displayed goods at length. The eating joint has no
infrastructure; customers at Saravana sit with the rest of the family on dhurries on the floor—just
like at home. The anchor no doubt is price, which even attracts people from the middle class. A
20-30 per cent saving is attractive by any standards. For the first time in 2013, Saravana Stores
attempted to cover the upmarket customers by launching Saravana Elite, a jewellery store in the
busy T Nagar area of Chennai, not far from where many of its extremely crowded older stores
stand. Elite stands for everything the older stores don’t, including an uncluttered ambience. It has
well- designed interiors, parking for customers, and even imported jewellery to attract young
buyers.

The retail marketing mix of Saravana Stores and Shoppers Stop is focused on different
sections of the market. However, both indicate the primary goal required for successful retailing—
the satisfaction of target consumers. In order to achieve this task, retailers are required to have a
better understanding of consumer benefits, their perception and attitudes, and how these aspects
of their behaviour influence the development of successful retail marketing strategies.

1.2 CONSUMER BEHAVIOUR – MEANING

Consumer behaviour is the study of how, where, when, and why people buy, use and get
rid of products or services. It refers to the multi-step, decision-making process in which buyers
engage and the actions they take to satisfy their needs and wants in the marketplace. However,
there is no single standard of behaviour. Individual consumers behave differently based on
psychological factors like motivation, and also due to environmental and situational forces.

Consumer Behaviour can also be viewed as the study of individuals, groups, or

organizations and the processes they use to select, secure, use, and dispose of products, services,
experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer
and society. It attempts to understand the decision-making processes of buyers, both individually
and in groups such as how emotions affect buying behaviour. It studies characteristics of individual
consumers such as demographics and behavioural variables in an attempt to understand people’s
wants. It also tries to assess influences on the consumer from groups such as family, friends, sports,
reference groups, and society in general.

Consumer Behaviour deals with the various stages, a consumer goes through, before
purchasing products or services for his end use.

Consumer behaviour is the study of individuals, groups, or organizations and the processes
they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs.
The impact, these processes have on the consumer and society is a significant aspect of consumer
behaviour.

It attempts to understand the decision-making processes of buyers, both individually and

in groups. It studies characteristics of individual consumers such as demographics and behavioural
variables in an attempt to understand people’s wants. It also tries to assess influences on the
consumer, which are usually exerted from groups such as family, friends, reference groups, and
society in general.

In short, Consumer Behaviour is a branch which deals with the various stages a consumer
goes through before purchasing products or services for his end use. Buying Behaviour is the
decision processes and acts of people involved in buying and using products.

To understand this, it is important to seek answers to following questions

i. Why consumers make certain defined purchases.
ii. Which factors influence consumer purchases.

iii. What are the changing factors in our society.

Consumer Buying Behaviour refers to the buying behaviour of the ultimate consumer.

A firm needs to analyse buying behaviour for the followings

i. Buyer’s reactions, to a firms marketing strategy have a great impact on the firm’s success.

ii. The marketing concept stresses that a firm should create a Marketing Mix, that gives utility to
customers, therefore, there is a need to analyse the what, where, when and how consumers buy.

iii. Marketers can predict how consumers will respond to marketing strategies more effectively.

1.3 NATURE OF CONSUMER BEHAVIOUR

1. Different for Different Products

Behaviour of consumers for different products is different. While some consumers buy
more of one commodity and very low/no quantity of some other goods, another set of consumers
may act entirely differently.

2. Influenced by Various Factors

Consumer behaviour is influenced by a number of factors. The factors that influenced
consumer comprise, marketing, personal, psychological, situational, social, cultural etc.

3. Different for Different Customers

All consumers do not behave in the same manner. Different consumers behave differently.
The difference in consumer behaviour is because of individual factors such as nature of the
consumer’s life style, culture, etc.

4. Systematic Process
Consumer behaviour is a systematic process linking with buying decisions of the
customers.

The buying process includes the following steps

(i) Need identification to buy the product.

(ii) Information search relating to the product.

(iii) Listing and Evaluating the alternative (cost-benefit analysis).

(iv) Purchase decision.

(v) Post-purchase evaluation by the marketer.

5. Varies Across Regions

The consumer behaviour vary across states, regions and countries. For instance, the
behaviour of urban consumers is different from that of rural consumers. Normally, rural consumers
are conservative (traditional) in their buying behaviour.

6. Crucial for Marketers

Marketers should have about consumer behaviour. They require to study the various factors
that influence consumer behaviour of their target customers. The knowledge of consumer
behaviour enables marketers to take appropriate marketing decisions.

7. Brand Loyalty
Brand loyalty is the tendency of a consumer to buy products or services from a certain
company that one likes or equates with having high quality goods and services.

8. Results in Spread-Effect
Consumer behaviour has a spread effect. The buying behaviour of one person may effects
the buying behaviour of another person. For instance, a customer may always prefer to buy
premium brands of clothing, watches and other items etc., this may influence some of his friends,
neighbours, colleagues. This is one of the reasons why marketers use celebrities to endorse their
brands.

9. Higher Standard of Living

Consumer buying behaviour may lead to higher standard of living. The more a person buys
the goods and services, the higher is the standard of living.

10. Flexible
Consumer behaviour is not rigid or static. It keeps on changing over a period of time, due
to various factors such as change in age, education, income level, fashion, trends, climate etc., e.g.,
kids may prefer colourful dresses, but as they grow up as teenagers and young adults, they may
prefer trendy clothes.

11. Information Search

 Consumers cannot buy goods and services in case they are unaware that a good or service
exists. When a consumer decides to get a certain item, his decision must be based on the
information he has gathered about what products or services are available to fulfil his needs. There
might be a product available that would be better suited to the consumer’s needs, but if he is
unaware of the product, he will not buy it.

12. Reflects Status

Consumers buying behaviour is not only dominated by status of a consumer, but it also
reflects it. Those consumers who own luxury cars, watches and other items are considered by
others as persons of higher status.

1.4 IMPORTANCE OF CONSUMER BEHAVIOUR

1) production policies
The study of consumer behaviour affects the production policies of the enterprise.
Consumer behaviour discovers the habits, tastes, and preferences of consumers and such discovery
enables and enterprise to plan and develop its products according to these specifications. It is
necessary for an enterprise to be in continuous touch with the changes in consumer behaviour so
that necessary changes in products may be made.

2) Price policies
Buyer behaviour is equally important in having price policies. The buyers of some products
purchase only because particular articles are cheaper than the competitive articles available in the
market.

3) The decision regarding channels of distribution

The goods, which are sold and solely on the basis of low-price mast and economical
distribution channels. In the case of those articles, which week T.V. sets, refrigerators, etc. Must
have different channels of distribution. Thus, decisions regarding channels of distribution are taken
on the basis of consumer behaviour.

4) A decision regarding sales promotion

 Study of consumer behaviour is also vital in making decisions regarding sales promotion.
It enables the producer to know what motive prompt consumers to make purchases and the same
are utilized in promotional campaigns to awaken a desire to purchase.

5) Exploiting marketing opportunities

Study of consumer behaviour helps the marketers to understand the consumer’s needs,
aspirations, expectations, problems, etc. This knowledge will be useful to marketers in exploiting
marketing opportunities and meeting the challenges of the market.

6) Consumers do not always act or react predictably

The consumers of the past used to react to price levels as if price and quality had positive
relations. Today, week value for money, lesser price but with superior features. The consumer’s
response indicates that the shift had occurred.

7) Highly diversified consumer preferences

This shift has occurred due to the availability of more choice now. Thus, the study of
consumer behaviour is important to understand the changes.

8) Rapid introduction of new product

Rapid introduction of new products with technological advancement has made the job of
studying consumer behaviour more imperative. For example, information technologies are
changing very fast in the personal computer industry.

9) Implementing the “Marketing concept”

This calls for studying consumer behaviour, all customers need have to be given priority.
Thus, identification of target market before production becomes essential to deliver the desired
customer satisfaction and delight.

1.5 ADVANTAGES OF CONSUMER BEHAVIOUR

 The consumer science is largely used by marketer to find-out whether a particular product
will be purchased by consumers or not. The failure of a large number of products after II World
War compelled the producers and marketer to undertake consumer studies to market test the
products.

Some of the advantages of consumer behaviour

Saves from Disaster

The failure rate of new products is surprisingly high not only in highly competitive
economies of USA, Europe and Japan etc. but even in India. For instance, Roohafza of Hamdard
succeeded well but when other companies tried like Dabur to produce similar products they could
not succeed. Dabur had to stop production of Sharbat, because consumers did not like its taste.
Meghee became very popular with consumers but when other companies tried they failed, some
of them have become sick. There are many more such examples. If one tests the market before
launching a new product this type of disaster can be avoided or minimized.

Helps in Formulating Right Marketing Strategy

If one studies well what factors will influence demand of a product accordingly production
and marketing strategies can be framed. Nirma in initial stages succeeded in its washing powder
only on account of its price. It gave tough competition to Hindustan Lever, Surf the market leader
and today Nirma has become a big producer.
In food items it is taste which decides whether consumer will buy it or not. Besides big names
even small producers have succeeded because of proper product. For instance, a small producer of
Sikanji (cold drink prepared by mixing syrup and lemon) at Modinagar has become a name in the
region and now he provides franchise to others. From a small pan shop he has become a well
known name in the area of Delhi-Modinagar and made huge profits. Helps in Sales Promotion

If through the study of consumer behaviour one is able to know correctly the factors which
influence buying decisions of the consumer one can promote sales of existing or new product. The
scheme of buying back old items has helped a lot LML in pushing sales.

This strategy was followed, by Akai T.V. and number of other companies like Bajaj Auto
Akai. T.V. Manufacturers of diesel generator sets, refrigerators, electric iron, pressure cookers etc.
also adopted the strategy and benefited.
 Similarly, introduction of small packs of shampoos, washing powder and pan masala etc
has helped the companies to expand their market. “When producers found that even a poor person
does not mind trying a new costly product if it is available in affordable price pack many
companies introduced such packaging and when the product was liked they became regular
customers.

Segmentation of Market is Helped

The study of consumer behaviour suggested that everyone does not buy on price
consideration or utility consideration only. For high income group’s high-priced cloth, cars, etc
have been produced. In certain case the price of such cloth is three to eight times of normal suiting
price but some section still buy it for prestige or show.
The producers of such items make heavy profits which would not have been possible
without study of consumer behaviour because it is against basic economic theory. Even some
producers to cater different segments produce varieties of products such as soaps, creams,
toothpastes etc.

Helps in Development of New Products

Before launching a new product proper study of consumer tastes i.e., behaviour avoids later
failure and loss. This is particularly true for food items and daily consumption products. It is
equally true for fashion goods like garments, cosmetics, cigarettes and new flavours of existing
products. In certain case if a product is reintroduced after a long gap this type of study helps.
For instance, Coca-Cola was banned in India in 1977 and consumers by and large forget
its taste and liking. Thumps up and other drinks took its place. When Coca-Cola was reintroduced
in 90’s it could as yet not reach the same supremacy. Life Bouy re-oriented its product and
produced different items like Life Bouy Gold, Life Bouy Plus to meet demand of different
consumers.

Helps in Product Orientation

The study of consumer behaviour helps to find-out why consumers are drifting away from
a product or why they are not liking it. For instance, some of Indian toothpastes are being produced
for long like Neem but it could not capture the market. There are many other instances when a new
product has been developed or reoriented to again capture its old glorious position.
Those who do it scientifically succeed and others who do not study consumer behaviour properly
or do not orient loose the market, merely by pretty faces or fancy claims he wants to be assured
that what is claimed is really true.

Therefore, based on consumer research new techniques are used Hindustan Lever and
Procter & Gamble for Surf Ultra and Ariel has brought in producers of cloth Bombay Dyeing and
Reliance to testify claims of producers of these washing powders. This is not an isolated case but
this type of study had paid good results to others also.

Helps in Reorientation of Packaging

A great deal of importance is being given to packaging for quite some time by marketing
department and market research. But whether a particular packaging is liked by consumers or not
is a recent phenomenon. Consumer if likes a packing helps in pushing sales.
Producers of Vanaspati (hydrogenated oil), milk, drinks items, etc. have developed utility
packaging so that once container becomes empty they can be used for refilling. In certain case this
fact is advertised also. But in many cases this has been done without study of consumer behaviour
and his attraction or disliking of a particular packaging. The fact however remains that proper
study can help in pushing sales.

Helps Consumers to Study their Behaviour

The consumers often are guided by their income, emotions, opinion of others and they do
not undertake study of their behaviour whether it is scientific or not. The science, however, can
help them to study cost benefit of their buying decisions. The study can reveal them whether
buying an expansive item is rational, or not. Whether they should buy Rs. 2 ball pen or fancy pen
costing Rs. 100 or more. Whether they should decide in favour of expensive cloth, car, consumer
durables and other fashion goods or should they buy on utility consideration. If there are
competitive goods it can help them to make consumer preference chart and then decide what to
buy immediately and what to postpone and what should be rejected.

1.6 DISADVANTAGES OF CONSUMER BEHAVIOUR

 The marketers study the behaviour of consumer to mould it in favour of their product and
sometimes make fancy claims and use objectionable techniques. They also take the help to produce
and market such products which have no utility. In many cases consumers are exploited by
attractive advertisements through the media.

They take full advantage of weaknesses of consumers to mould it in their favour whether
it is scheme of exchange, gifts, lotteries or otherwise. All over the world consumers have been
exploited by sales promotion schemes and campaigns. For instant producers certain producers
claim that use of their tooth paste will guard against germs and cavity.

Producers of medicines claim cure of certain diseases. Producers of hair oils claim that it
will stop falling of hairs and/or new hairs will start growing. Slim centres claim to reduce weight
in magic speedy manner. Someone claims that baldness can be cured by replanting of new hairs in
short period. Someone claims regeneration of vitality even in old person.

Any number of examples can be given but such claims sometimes even by big companies
are only partially true. High priced products are introduced to take advantage of consumers
weakness just by changing shape, packing etc. Customers are attracted by gifts, lotteries, exchange
schemes, etc.

In such cases often claims are exaggerated and benefits in the form of sales promotion
scheme is only to seller and not to buyer. The government in most of the countries has found that
though consumer is the king he is exploited. Hence most of countries have framed and enacted
many acts and regulations to safe guard the interest of consumers.

In India also there are a large number of laws in this direction like Monopoly and
Restrictive Trade Practices Act (MRTP)., Essential Commodities Act., Consumer Protection Act,
compulsory printing of maximum retail price on each packing, weights and Measures Act and
Code of Advertising.

1.7 SCOPE OF CONSUMER BEHAVIOUR

1) Consumer behaviour and marketing management

 Effective business managers realize the importance of marketing to the success of their
firm. A sound understanding of consumer behaviour is essential to the long-run success of any
marketing program. In fact, it is seen as a cornerstone of the Marketing concept, an important
orientation of philosophy of many marketing managers. The essence of the Marketing concept is
captured in three interrelated orientations consumers’ needs and wants company integrated
strategy.

2) Consumer behaviour and non-profit and social marketing

In today’s world even non-profit organizations like government agencies, religious sects,
universities, and charitable institutions have to market their services for ideas to the “target group
of consumers or institution.” At other times these groups are required to appeal to the general
public for support of certain causes or ideas. Also, they make their contribution towards eradication
the problems of society. Thus, a clear understanding of the consumer behaviour and decision-
making process will assist these efforts.

3) Consumer behaviour and government decision making

In recent years the relevance of consumer behaviour principles to government decision

making. Two major areas of activities have been affected:

i) Government services It is increasingly and that government provision of public services can
benefit significantly from an understanding of the consumers, or users, of these services.

ii) consumer protection Many Agencies at all levels of government are involved with regulating
business practices for the purpose of protecting consumers’ welfare.

4) Consumer behaviour and demarketing

It has become increasingly clear that consumers are entering an era of scarcity in terms of
some natural gas and water. These scarcities have led to promotions stressing conservation rather
than consumption. In other circumstances, consumers have been encouraged to decrease or stop
their use of particular goods believed to have harmful effects. Programs designed to reduce drug
abuse, gambling, and similar types of conception examples. These actions have been undertaken
by government agencies non-profit organizations, and other private groups. The term
“demarketing” refers to all such efforts to encourage consumers to reduce their consumption of a
particular product or service.

5) Consumer behaviour and consumer education

Consumer also stands to benefit directly from orderly investigations of their own
behaviour. This can occur on an individual basis or as part of more formal educational programs.
For example, when consumers learn that a large proportion of the billions spend annually on
grocery products is used for impulse purchases and not spend according to a pre-planned shopping
list, consumers may be more willing to plan an effort to save money. In general, as marketers that
can influence consumers’ purchases, consumers have the opportunity to understand better how
they affect their own behaviour.

1.8 FACTORS INFLUENCING CONSUMER BEHAVIOUR

The behaviour of consumer is dependent on a number of factors which may be economic

or non-economic factors and are dependent upon economic factors such as income, price,
psychology, sociology, anthropology, culture and climate. Therefore, the study is dependent upon
all these sciences and consumer behaviour scientists study it through research and they believe that
behaviour can be influenced which has been proved by actual sales promotion of a large number
of products.

However, there is dispute whether customer should be influenced or not and what methods
should be applied to influence him. In certain case objectionable or wrong statements are made to
influence the consumer. For instance, producers of certain face creams advertise that with the usage
of their creams complexion will become fair but actually it does not happen.

There are ads for removing baldness by certain oils or creams. In certain countries there
are heavy damages under the contract act or other laws to safeguard the interest of consumers. In
India there is Consumer Protection Act to safeguard consumer’s interest.

The basic fact is that marketing personnel believe that it is legitimate socially to influence
the consumer behaviour but only objection is with regard to methods used. For instance, the use
of sex is objected in many countries including India but still it is widely used in advertisements.
The study of consumer behaviour has proved that following are the main factors which
influence the behaviour

1. Economic Factors
● Price

● Income

● Distribution of Income

● Competition with substitutes

● Utility

● Consumer preferences

2. Social Factors
● Culture

● Attitude of society

● Social values

● Life Style

● Personality

● Size of family

● Education

● Health standards

Social class like upper class, middle class-urban, rural. It also includes tribes, professions and alike.

Group In certain societies and tribes group decision is taken or influences the decision.
3. Psychology
It decides the personality, taste, attitudes of individuals or groups, life style, preferences
especially on occasions like marriage. The demonstration influence is also dependent upon
psychology of an individual.

4. Anthropology & Geography

Climate, region, history all effect, consumer behaviour. In hot countries like India certain
products which keep us cool like squashes, sarbatas, are demanded but they have no demand in
cold regions. The dress is also influenced by climate along with other factors. Culture is also
influenced by climate.

5. Technology
In case of equipment’s whether for consumer use or industrial use is affected by
technological innovations and features. But it is not confined to durable goods only. Even in case
of perishable goods the shelf life etc are determined by technological developments. Innovations
and introduction of new product also depends upon technological development. Innovations and
introduction of new products also depend upon technological change.

6. Other
Knowledge-technical or otherwise and information. Government decisions, laws,
distribution policies, production policies have also big affect on consumer behaviour. All these
factors are studied by consumer behaviour scientists and then they decide what production and
marketing strategy should be adopted to develop a particular product, change the existing product
and what pricing and marketing mix should be used to attract more customers towards the
product/service in question to optimize sales and profits.

The consumer behaviour study in India has been ignored except by MNC’s and a few big
companies. It is because till recently say up to the beginning of 90’s there was sellers-market and
anything could be sold. Therefore, hardly any attention was paid to consumer. For instant
Hindustan Motors continued to produce same car for decades till Maruti appeared on the arena.
But with the competition emerging many cars, refrigerators, TV’s to mention a few items appeared
on the scene.
 This resulted into study of consumer behaviour and in future when competition is expected
to be fierce for many products and when not only American and European producers will be on
the scene but Japan and Korea are emerging big players there will be much greater emphasis on
study of consumer behaviour. The establishment of over 700 management institutes is also helping
greater use of the tool of consumer behaviour for marketing.

1.9 NEED FOR THE STUDY

● To study the importance of digital marketing in present era.

● To get an idea about the industry, Indian population and digital media, concepts of digital
marketing.
● To understand the change in consumer buying behaviour in digital era.
● To understand the reason behind the growth of digital media marketing.

1.10 OBJECTIVE OF THE STUDY

● The main objective of the study is to understand the consumer buying journey in Digital
era.
● To know affinity in customers for collecting information before purchase.
● To understand the media consumption of Indians.
● To figure out how Indian will purchase a product.
● To understand post purchase behaviour of Indian.

1.11 LIMITATION OF THE STUDY

● Sample size is less to represent the whole population.

● Respondent’s behaviour may be casual.
● Financial resources are not available.
● Some people were not responsive.
● Possibility of error in data collection because many of the respondents may haven’t given
a answer to the questionnaire.

1.12 STATEMENT OF THE PROBLEM

● How does advertisement create awareness in consumer?

● Does advertisement build perception in the mind of consumer?
● Does consumer awareness and perception affect their buying behaviour?
 CHAPTER - 2

INDUSTRY PROFILE

2.1 INTRODUCTION
The Indian Media and Entertainment (M&E) Industry, one of the most vibrant and exciting
industries in the world, has had a tremendous impact on the lives and the Indian economy. As the
M&E industry widens its reach, it plays a critical role in creating awareness on issues affecting,
channelling the energy of and building aspirations among India’s millions. As it entertains and
informs the country, the M&E industry has been a catalyst for the growth of large parts of the
Indian economy. M&E industry consist of TV, Print, Films, Radio, Music, OOH, Animation and
VFX, Gaming and Digital Advertising.

The media and entertainment (M&E) industry in India is poised to grow at a CAGR of 14.3
per cent to INR 2260 billion by 2020, led by advertising revenue which is expected to grow to INR
994 billion at a CAGR of 15.9 per cent. Digital advertising continued its strong run with 38.2 per
cent growth over 2014 as a mounting Internet user base and data usage were supplemented by
increased spend allocation by marketers. These projections are part of the FICCI - KPMG Media
and Entertainment industry report 2016.

The report suggests that by 2020 the digital advertising market is likely to scale up to INR
255 billion and contribute to 25.7 per cent of total advertising revenues. Increased share of mobile
and video advertising as part of digital media is one of the things to look forward to as well.
 Speaking at the inaugural session of FICCI Frames 2016, A Didar Singh, Secretary
General, FICCI, said, “We are going through a phase of rapid and sustained technological
innovation which will permanently change the way consumers will access and consume
content. The theme of this year’s FICCI conference is ‘Change or Perish: The Year of the Digital’
aptly captures the pitfalls that Media and Entertainment (M&E) organisations face. Changing user
habits will disrupt existing business models as content providers and brands will need to match
consumer expectations. While this will pose multiple challenges, we believe that there are
significant opportunities for M&E companies to leverage the new digital ecosystem.”

Highlights:
● Media and entertainment sector grew by 12.8 per cent from INR 1026 billion in 2014
to INR 1157 billion in 2015
● Overall advertising grew by 14.7 per cent from INR 414 billion in 2014 to INR 475
billion in 2015
● Bollywood continues to face challenges in terms of low screen density and intense
competition from Hollywood and regional content
● Digital advertising continues its growth trajectory of over 30 per cent per year

Key highlights of the year 2015 include implementation of a viewership measurement

system by Broadcast Audience Research Council (BARC) with the impact on budget allocations
for advertising among channels only just starting to change. The e-commerce industry is expected
to continue to advertise across mediums, moving from its earlier focus on digital platforms with
an increased focus on regional markets.

“Print saw a slower growth in the past year but TV and digital advertising have exceeded
expectations. With the wide rollout of 4G finally underway, coupled with the ‘Digital India’
initiative, the future of digital advertising is very bright. The film sector also returned to growth in
2015 but led by Hollywood and regional rather than Hindi,” says Jehil Thakkar, Partner and Head
of Media and Entertainment, KPMG in India.

Television sector
As per the report, the television sector witnessed strong advertising-led growth at 17 per
cent with increase in e-commerce spends. Growth in subscription revenue was slower at 12.8 per
cent due to the delay in Phase 3 digitisation and further delays in securing on-ground benefits of
Phase 1 and 2. “In a year of transition, when a new ratings mechanism was rolled out, the television
sector has done really well on advertising. Any growth in subscription will really add to the
strength of this sector,” added Thakkar.

Film sector
Coming off a flat year in 2014, the film industry returned to a healthy growth of 9.3 per
cent in 2015. Bollywood is constrained by the slow pace of screen growth and also has been facing
increased competition from Hollywood and regional content. As per the report, wider reach in
distribution expansion to non-DCI compliant screens has opened up a significant portion of the
audience to Hollywood content. Also, increase in the number of franchise films helped expand the
market. Better performance at the box office by regional films has also resulted in increased
budgets and marketing spends. Thakkar said, “A real surprise this year was the strong growth in
regional, both in terms of quality and box office performance. I think audience expectations are
now higher for regional films and they will continue to perform well, going forward.”

Print media
As per the report, at 7.6 per cent, the print industry witnessed a marginal slowdown in 2015
compared to 2014 – an election year. For English language publications, e-commerce stood out as
a category in a year of muted growth.

While the growth rate for regional print dipped from the previous year as well due to
subdued advertising, some publications were able to raise cover prices to keep circulation revenue
healthy. The regional market continues to have a bright future – especially with the government’s
recent rural-friendly Budget and newer categories like e-commerce finally likely to help
publications in tier II and tier III markets. “As was the case in 2014, Hindi and regional
publications outperformed English ones in terms of growth rate in 2015 even though it was a
slower year. The impact of digital in 2016 and 2017 will be interesting to watch as the use of social
media and Internet spreads in these markets,” said Thakkar.

Radio
Projections with reference to the radio industry are driven by the implementation of Phase
3 of licensing. As per the report, the industry grew at 15.3 per cent in 2015, and is projected to
grow at over 16 per cent for the next few years. As Phase 3 stations become operational, radio may
very well become a ‘reach’ medium from a ‘coverage’ medium.
 However, Phase 3 auctions raise concerns over small cities not being included in the
auction amid fears of high reserve prices, and weak market potential. This dilutes the interest levels
on the second Phase 3 auction dates, which are yet to be announced by the government. Thakkar
added, “The implementation of Phase 3 finally began and it would be beneficial to the industry if
the government concludes Stage 2 of the auctions as well as pending regulatory matters as soon as
possible.”

OTT
The 4G rollout, ‘Digital India’ initiative and private initiatives for broadband Wi-Fi
availability at public places is likely to be a significant catalyst for the growth of Over The Top
(OTT) services – several of which were launched in 2015. These digital infrastructure
improvements, coupled with the rapid expansion of smartphone penetration, are critical to the ramp
up of OTT. The report says that at present there are concerns around bandwidth constraints, high
cost of customer acquisition, dependence on advertisement-led models and high cost of data
access. “The year 2015 saw a number of OTT services being launched, and we expect this trend
to continue in 2016 as well. However, this industry is yet to find a sustainable business model in
India, which is likely to emerge in the next 12 to 24 months,” said Thakkar.

Sports
The report confirms that in 2015 cricket continued to be the primary brand puller with
prime properties such as IPL and World Cup witnessing an increase in ad rates and sponsorship.
However, various sporting leagues such as Kabaddi, Football, and Tennis managed to create a
buzz in the Indian market. It was also observed that PKL continued its successful run in particular.
Brands in India are starting to invest in other sporting activities, which requires a long-term vision
and strategy to attract viewers’ sustained interest. “It is tremendous that alternatives to cricket are
being established in India’s sports ecosystem. The rise of the ‘second screen’ has now created a
sustainable business model for a variety of sports across India,” added Thakkar.

2.2 Business Model of Industry

 ● ATD- Agency Trading Desk
● DSP- Demand Side Platform
● SSP- Selling Side Program

About Process

Clients would give authority to agencies, to wear the shoes of clients. Agency will create
ads, which may be banner ads or videos. After the creation and getting approval from clients,
agency while find out the portals or websites where the T.G is present. Later give the order to DSP
or ATD, this order contains details regarding where to place ads or which portal is requiring to
placing the ad. This DSP/ ATD will bid in ad exchange for that portal. Otherwise agency can
directly approach to ad networks and give orders. These ad networks buy the inventories from
publisher and give to agency. From publisher view he can sell inventories through Ad networks or
through SSP. If publisher give to SSP, they will place those space in ad exchange for bidding.
Through ad exchange DSP/ATD will buy those inventories. Bidding will not only for space but
also for T.G which required for clients.

Ad exchanges are technology platforms that facilitate the bids for buying and selling of
online media advertising inventory from multiple ad networks. The approach is technology-driven
as opposed to the historical approach of negotiating price on media inventory.A demand-side
platform (DSP) is a system that allows buyers of digital advertising inventory to manage multiple
ad exchange and data exchange accounts through one interface. Real-time bidding for displaying
online ads takes place within the ad exchanges, and by utilizing a DSP, marketers can manage their
bids for the banners and the pricing for the data that they are layering on to target their audiences.
A supply-side platform or sell-side platform (SSP) is a technology platform, web publishers of
the world use a supply-side platform to automate and optimize the selling of their online media
space.

2.3 Porter’s Five Model Analysis of Digital Advertising Industry

Porter’s model will help analysis the industry and understand where the power lies in the
business. Here I am using porter’s model to understand digital advertising industry in India.
Generally, in the Indian advertising industry, contracts are long termed, and customers are likely
to keep going back to the same advertiser so long as results were obtained the first time.

1) Threats of New Entry

⮚ Full services agencies have high demand in Market.
⮚ Lack of getting efficient work force is a threat in digital advertising.
⮚ Cost of setting up a digital agency is low. But agencies need to invest a huge amount
in backend function like technology.
⮚ Getting clients in the initial stage is a bit difficult, because clients will usually look the
past experience of agency.
⮚ Government regulations in the digital advertising are low. While comparing with M&E
industry.
2) Bargaining power of suppliers
⮚ Lot of suppliers are there, but some suppliers who have high reach and affinity will
charge high price for placing ads in their portals.
⮚ Real time bidding will lead to increase the demand of some portals.
⮚ Bargaining power of suppliers, who provide data and information are very high.
⮚ Seasonal campaigns put pressure on supply side to charge high.
⮚ Employee or work force with proper knowledge is limited.
3) Bargaining power of buyers
⮚ Buyer are the clients of agencies, basically buyers are high idea seekers.
⮚ Clients will choose agencies which have good experience in industry.
⮚ Clients like long term relationships with agencies, so they also try to adjust with
agencies.
 ⮚ Clients can ask agencies to change pattern of campaigns at any time.
⮚ Clients like MNC’s have high power over agencies, but SME’s will satisfy with
performance of agencies.
⮚ Backward integration by buyers is not possible.
4) Threats of substitutes
⮚ No. of substitutes is high, substitutes include Print media, TV, OOH and Radio.
⮚ Substitutes are too popular among buyers. They had high demand in past years.
⮚ Main competitor for Digital advertising is TVC, but trends are now changing FICCI-
KPMG report of 2014 showing growth of digital is very high while comparing with
others media.
⮚ But media consumption through radio is increasing now.
5) Rivalry by existing competitors
⮚ At present competitors are low, but it can be increase in future. Because lot new players
are coming to the industry.
⮚ Existing competitors have high profile clients and clients loyal toward them.
⮚ Most of the traditional agencies are now concentrating in digital also.
⮚ Existing firms in the Industry are creating variety and unique campaign for clients.
⮚ Most of the firms have efficient backend support in technology.
⮚ Existing firms have the expertise manpower and firms giving good remunerations to
employees. So employees are loyal towards employers.
⮚ Some firms are popular due to execution of innovative campaigns.
⮚ Few of the brands have in-house agencies, it will reduce business but not in a high
level.

Conclusion of Porter’s Five Force Analysis

⮚ Low threats for new entry.

⮚ High bargaining power of suppliers.
⮚ Bargaining power of buyer is medium, but in coming year there is chance for increase. Due
to lot of players are coming to industry.
⮚ Threats of the substitutes are high, but it will change in coming years.
 ⮚ Rivalry by existing competitors is high, but possible to break it by doing some unique
campaign for client.
⮚ Indian market is a potential market for digital advertising due to high internet and mobile
penetration.

2.4 INDIA AND INTERNET POPULATION

India, with 1,270,272,105 (1.27 billion) people is the second most populous country in the
world, while China is on the top with over 1,360,044,605 (1.36 billion) people. [10] The figures
show that India represents almost 17.31% of the world's population, which means one out of six
people on this planet live in India. Although, the crown of the world's most populous country is on
China's head for decades, India is all set to take the numerous positions by 2030. With the
population growth rate at 1.58%, India is predicted to have more than 1.53 billion people by the
end of 2030.

India is currently having online population of 213M, among them 60% are males and 40%
are females. In have 110 M mobile internet users, among them 80% are males and 20% are females.
176M of the total internet population are part of Social Medias.

India has bypassed Japan to become the world’s third largest Internet user after China and
the United States, and its users are significantly younger than those of other emerging economies,
global digital measurement and analytics firm comScore has said in a report. Riding on a 31%
year-on-year increase, India’s online population grew to 73.9 million. With an extended online
universe in excess of 145 million the market is at a tipping point for online businesses. The
numbers are lower than other recent estimates, possibly reflecting comScore’s methodology that
only factors in PC and laptop-based Internet usage.

2.5 GENDER WISE

India has 504 million active Internet users, or those who accessed the Internet in the last
one month. These active users were five-year old and above as on November 2019, according to
the Internet and Mobile Association of India (IAMAI)'s Digital in India report.
Of the total Internet population, 433 million are more than 12-years old, while 71 million are in
the age of 5-11 years, who access the Internet on devices of their family members.
The report also showed that nearly 70% of the active Internet population in India are daily users.
Nine out of 10 users in urban India access Internet at least once a week. In rural India, there
is an addition of 30 million new users, who access internet daily compared to March 2019.
In India, close to one-third of user access Internet for ‘more than an hour’ during Sundays
and holidays versus a normal working day.
The report claims that the time spent on the Internet continues to be higher in urban India compared
to rural India, but with better connectivity, quality of service and affordability of mobile Internet,
there could be an increase in rural consumers spending more time on the Internet in the future.
The report finds that 26 million new female Internet users were added in November 2019,
a 21% increase compared to a 9% rise in male users. However, the usage of Internet among women
in rural India is growing at a faster rate, with 31% increase in population in November 19. The
split of male and female is 58:42 in metros with a population of more than 50 lakhs. Mobile phones
remain the first choice for a device to access internet in both urban and rural India due to their
affordability, along with availability of cheaper data plans.

2.6 BEHAVIOUR OF INDIAN INTERNET USERS

Trends in online behaviour are changed a lot, social networking is leading now. Early
people will use internet to access email and for searching information. But now people like to be
social, they are interested in sharing their life with others. 25% of the population are doing social
networking in India followed by 23% in services. Services include emailing and instant messaging.

Mobile Internet Users

Internet penetration in India is driven largely by mobile phones, with some of the cheapest
and most basic hand-sets today offering access to the internet. According to IMAI, India has 110
million mobile internet users of which 25 million are in rural India. The growth of internet
penetration in rural India is driven largely by the mobile phone; 70% of rural India's active internet
population access the web via mobile phones. This may have to do with the difficulty in accessing
PCs. Forty-two percent of rural India's internet users prefer using the internet in local languages.
The high prevalence of content in English is a hurdle for much of rural India.

Research report of InMobi showing the behaviour mobile user in internet, 21% of their
total consumption is for Entertainment and Social Media, which followed by Games, General
Information Search and Email.

2.7 NUMBER OF SOCIAL NETWORK USERS IN INDIA

With the ease of internet access, the number of social media users in India stood at 326.1
million in 2018. This increase is relatively lower as compared to the growth that occurred between
2016 and 2017. Nevertheless, the social network users in the country were expected to be almost
448 million in 2023. Facebook remained the popular choice among the social media platforms as
of 2017.
Entertainment and Online Video
According to comScore data, the online video audience in India grew an astounding 27
percent in the past years; YouTube continues to be the top video property with more than 55%
share. International publishers including Facebook, Yahoo and Dailymotion get a majority of the
54 million who watched videos. YouTube is the most popular with 32,519 visitor.
 Social Video report saying 46% of internet users watch brand related video every week.
54% watching videos that are informative or entertaining often leads to a number of other positive
activities such as visiting the brand website. Peoples are now likely to regularly watch videos using
their smart phones. Almost six in ten internet users have gone to purchase an item after seeing it
in an online video.

Media Consumption of Indian’s

On an average, Indian consumers are spending 6.10 hours in media per day. In traditional
media Indian audience spend only 195 min or 3.15 hours. If we see the breakup it will be 86min
in television, 37 min in newspaper and 30 min in radio. Remaining 4.55 hours or 214 min in new
media or digital media. Break up of new media will be like 102 min in mobile, 79min in online
and 33 min in tablets.

From a marketer’s view digital platform is very important because customers have more
presence in digital media. Customers are spending more time on digital, so it is easy to catch
customers in digital platform, more than that spending digital is much cost effective while
comparing with traditional.
2.8 DIGITAL MARKETING

Online marketing or digital marketing or internet marketing or web marketing, is a

revolutionary process for all types business operations. It is a modern topic in every business
sector, and steadily plays an important role in any company's multi-channel marketing strategy.
The base of the Internet has provided advanced business transactions and models for the
international financial system. Online marketing adapts to rapid development of online business.
In the field of online marketing, online advertising has accomplished great success. Companies
must have to select carefully suitable online marketing strategy as it is never certain that the
strategy that works for one organization might not be effectual for the other. At present, Internet
is extensively used by organizations to encourage the business and online promotion is one of the
most successful and economical techniques of marketing for businesses.

Main advantage of all strategies of online marketing is that companies can conquer the
barriers or boundaries of distance and management team can not only promote their products and
services all over the world but sell them and generate huge revenues. Online marketing is
reasonably priced in contrast with other traditional methods, and there are numerous creative and
efficient ways in this marketing that companies can use in advertising or promoting products,
brand, services. Online marketing also facilitates business, companies or individuals take
advantage of the growing importance of social media sites such as Facebook, Twitter, LinkedIn,
MySpace.

Concept of Digital Marketing

Online marketing is described as the application of the Internet and associated digital
technologies in combination with traditional communications to accomplish marketing objectives
(Chaffey, Det, al., 2006). Online marketing has many synonyms which are used in business such
as e-marketing (electronic marketing) or digital marketing even though they have a broader scope
since they include electronic customer relationship management systems (e-CRM systems) as
well. The conception of Internet marketing has developed and
brought more opportunities for organizations to increase number of consumers at global level.
Earlier, the Internet was only used as a tool to contact customers and it was a part of direct
marketing. Currently, the Internet, principally websites are becoming a popular media for any
company to introduce its products and services. The Internet is considered as a sovereign and
effectual marketing device. According to the internet world stats (Sept 30,2020) the number of
Internet users has increased by 4 times (http://www.internetworldstats.com/stats.htm ). Records
indicated that in Asia, there were biggest population of 51.8% of World internet users.
Figure: Worlds’ internet users

Online marketing enables various organizations to track their customers and develop
relations with them easily. Major creative mechanism of online marketing includes social Media
Marketing, Email Marketing, Affiliate Marketing, Content Marketing and Online Video
Marketing which are available for online businesses to incorporate their overall Online Marketing
crusade. Some of the other successful Online Marketing Tools are Blogs, Keywords, New updates,
and Domain name.

The feature of online marketing is that it is growing at rapid rate and always changes with
time. Consequently, it is recommended to companies, who adopt online marketing strategies, must
always update themselves with new technology as well as forthcoming, and use the latest
technology or software's to take more advantages of online marketing. Major internet marketing
activity is directed toward driving customers to an organization's website, where they are
motivated to purchase online or through another channel. But internet marketing includes array of
strategies to interact online with customers and with other stakeholders. The most common online
marketing activities include developing website for company, placing advertisements on the web,
sending email messages, and engaging in search engine marketing efforts to put company's name
in top list when a customer searches the Internet for a particular product or service.

Additionally, Online marketing can include other activities, such as marketing through
online games, mobile phones, or direct response television broadcasts. Internet marketing is
dissimilar than traditional marketing as it offers novel ways of interacting with customers and other
stakeholders. Huge information and services can be provided through online formats, which can
be "taken by users as needed, rather than pushed to interested and uninterested stakeholders
through conventional offline formats.

The advantages of adopting internet marketing strategies depend on company sizes. It is a

new medium for advertising and PR (Public relationship) and a new product distribution channel.
Online marketing also provides new opportunities to develop new international markets without
the continuation of representative or sales offices and agents. The Internet offers new methods to
develop customer services and is considered as the most gainful marketing device as it reduces
paper works and number of employees as well as by passes operating offices.

Online marketing can be targeted to specific cultural groups because different groups may
respond differently to the presence of the same stimulus. Additionally, manifestations of culture,
such as values, heroes, rituals and symbols, offer insight in the way Internet marketers organize
effective Internet advertising crusades. In such cases, efficiency is enhanced by Internet marketing,
making these campaigns harmonious with consumers' culture and ensuring that proper symbols
are used (Luna, Peracchio and De Juan,2002).
2.9 DIGITAL ECOSYSTEM

•Search Engine (SEO/SEM)

•Displays (Banners,Rich media Banners)
Integrated •Mobile Marketing
•Social media

Channels •Email
•Video
•Websites

•Analytics

Intergrated •Content management

•Advanced Targeting
•Creative

Services
•Research + Planning
•Digital strategy

Search Engine Optimisation

This can be regarded as a division of search engine marketing. This is used to enhance the
quality of the traffic which arrives at a website from search engines. Whenever users search for a
specific key word and find a match, they notice a few sites which are observable on the first page
of search engine result. The aim of SEO is to give appropriate link of website to users. They want
their client websites to be listed higher in search engine results. This way they give their clients
i.e., companies a better chance to be noticed by consumers. SEO's can target various searches such
as image searching, local searching or vertical search engines. People involved in search engine
optimization are called search engine optimizers. They could be either company workers trained
in search engine optimization or 3rd party agencies who take the responsibility for the company.

In general SEO employees have to recognize how search engines actually rank pages.
This could be done through gaining knowledge in search engine algorithms, widespread
knowledge of search engines through the mechanism of patents. SEO employees are required to
amend their client web pages by adding exclusive information. Since they have to change web
pages related with companies, some companies may be hesitant to provide information as it could
be private and there are security risks related to this. Companies must recruit SEO personnel to
educate their workforce. There are two types of SEO personnel white and black. White hat SEO
people utilize techniques which search engines find satisfactory. Black hat SEO personnel use
methods which could case link spams. The objective is to improve page ranking. Z.Gyongyi et al
2015 argued how link spams are formed such as interconnecting web pages in a spam form to
optimize ranks. They have also explained how page ranks can be maximized in spam farms.

Social Networking and Social Media Based Advertising

Online marketing campaigns not only produce product awareness, but also reveal a generation of
advertising with benefits such as self-selectiveness, interactivity, full integration of various media
and marketing capabilities targeted towards specific individuals, countries or cultures (Wehling,
1996). Several websites of company have been responsible to create social networks where people
post their information and also connect to each other either for business networking or dating.
Major websites are tribe.net, myspace.com, orkut.com, linkedin.com. Novelty they all started as
sites which unite people. Some of them have generated profit through marketing. Linkedin.com
provides banner-based advertising which focuses on specific targets. Youtube.com can be
considered as social media-based advertising trendsetter. Fernando Angelo, (2007) describes how
social media marketing schemes became popular among people at global scale. He emphasizes
that consumer-based content has importance which can be exploited by marketing personnel. He
viewed social media as a means of intersection of software marketing, media, information and
entertainment. For example, Youtube.com allows users to capture their videos and put it up on the
site for sharing with others. Unregistered users can watch most videos on the site. It provides
features to rate videos and also keep users can upload an unrestricted number of videos. Naim
Moises, 2004 asserted that Youtube.com has great impact on the mind of people. Social media
marketing companies can create interactions by customizing information for individual customers
that permit customers to design products and services that meet their specific requirements. Social
media can allow transactions between customers and firms that would usually require human
contact (Watson et al. 2002).
Blog Based Marketing
A blog is a website that details personal views of individuals on a particular topic. Some
of the blogs act as personal diaries. A typical blog comprises of text, images, and links to other
blogs, web pages, and other media related to its topic. Some of the blogs include photos, video,
audio, podcasts. Blog is more effective through its content. Dawson Ron et al 2007 demonstrated
the trend of blogging and their report revealed that 39% of American adults (57million) are blog
readers. The outcomes of blog marketing are excellent as these boosts website search engine
ranking and popularity, drawing in customers. But the time and need for top-quality appeal is vital
to effective blog marketing and most business owners need to focus on their own company.
Through blogs, businesses can promote brand awareness by sharing insider information, updating
customers on new products, as well as providing links to the main sales channels. Blogs also make
easy the posting of comments and feedbacks, allowing admirers and detractors to post opinions
and questions to producers. This encourages the exchange of ideas between peers and can also
promote honest discussion between individuals and companies to improve their defaults (Hafele,
2011).

Email marketing
This type of marketing uses the power of electronic mail. Emails are sent mainly to develop
strong relationship with the old and new consumers. Emails include
advertisements/newsletters which are intended to entice new or older consumers to make
purchases or inform them of new products/services.

There are several benefits of adopting email marketing techniques:

● Email marketing campaigns are lucrative when compared to campaigns such postal
campaigns or printed newsletters.
● Email can be sent quicker as compared to normal post. The companies can do mass
mailing with the help of mailing list. This facilitates distribute quality information to a
specific range of consumers/customers.
 ● Companies can effortlessly track their returns when they use this system. They can also
track how many campaigns were winning or how many unsuccessful with the help of read
receipt, un-subscribed or messages that bounced on failure.
● Advertisers are able "push" the message to consumers whereas website marketing has to
attract customers to come to the advertiser.
● Companies that use Html based email can provide other links which can create further
leads for them.
● Companies can also recognize the preferences of customers by sending emails which ask
for opinions from consumers.
● Companies can target based on consumers interest that is only after taking consumers
interest when he signs up for a particular email service.
● Email marketing does not take up paper so it is environment friendly.

Though e-mail marketing offers range of benefits to companies as well as customers, it also
has some drawbacks. Spamming is major problems and it is very difficult to differentiate between
authentic email marketing and spamming. Most of the companies establish spam filters but filters
end up preventing even genuine emails from reaching. Companies are taking all efforts to stop
Spam. Email marketing needs to be done cautiously so that it cannot be sent to spam.

Viral Marketing
Viral marketing is a type of marketing techniques which use already existing social
networks to enhance brand image with help computer virus like techniques. It is also known as
word-of-mouth marketing. This method persuades consumers to transmit on marketing message
in chosen way. Viral promotions could involve video clips, interactive flash, images, or even
mobile messaging such as SMS. It works on the principle that customers who are impressed with
company's massage would tell people what they like and also communicate other people what they
would not like. Angela R. Dobele et al stated that there is great role of emotions such as joy,
surprize, sadness, anger, fear and disgust in making viral marketing a success (2007). Gender's
role in viral marketing campaigns also has importance. It is found in their study that companies
cannot rely on emotions alone in their viral marketing campaigns. Their campaigns should be
effectual in capturing the imagination of the beneficiary in order to make it triumphant. Viral
marketing campaigns which consider brand, product or service can succeed to persuade the
customers. When entering an Internet marketing zone, a company should know some important
issues such as different target customers, another way to contact customers, Internet security, and
new competitors. Chaffey et al. stated that in order to get success in Online marketing, a strategic
approach is necessary to manage the risks and deliver the opportunities available from online
channels (2006). To implement online marketing, various steps include defining the online
opportunity, selecting of the strategic approach and delivery result online. The key strategic
decisions for e-marketing are the same as strategic decisions for conventional marketing which
include selecting target customer groups, specifying how to deliver value to these groups.
Segmentation, targeting, differentiation and positioning are all keys to effective digital marketing.

Analysis
Analytics is the practice of evaluating data, and the process by which a company arrives at
a most advantageous decision. Here marketer analysis the integrate channel to understand the
effectiveness of communication. Analysis may be based on numbers of visitor or like in social
media pages..Etc.

Content Management
After analysis the integrate channels marketer can able to understand the problems with
current contents. Later he can manage the content to increase the engagement rate, content may be
text in banners, images or websites.

Advanced Target
Advanced targeting are techniques involving the sending of targeted messages to a specific
audience. It is used to increase the effectiveness of a marketing campaign. Behavioural targeting
is also a part of advanced targeting, here marketer can target the customer based on their past
behaviour in online. Marketer can put ads in other webpage where customer is going.

Creative
 Creative is the artistic component of an ad or website. It usually includes an image and
copy present in ads or website. Marketer can make those contents attractive to customers. Marketer
will sometimes change the entire design of websites, apps..Etc.

Research and planning

Marketer will do some research to understand the behaviour, taste and preference to
customers in digital platform. This research may be doing by using paid-tools like ComScore...Etc.
Through this research marketer can understanding where T.G is present or what T.G would to do
in online. After research marketer will plan new campaigns based on those research reports. These
campaigns are more effective to reach the T.G properly.

Digital Strategy
Digital strategy is the process of specifying an organization's vision, goals, opportunities
and initiatives in order to maximize the business benefits through digital media. Strategy will be
different for each brand, it will base on the brand objective and target groups interest. It is actual
a plan formulated by the marketer to explore the opportunities. Strategy may be short term or long
term, but it need to be fit with market situations.

Types of Digital Marketing

In normal outbound marketing, we will use pull and push marketing strategy. Like that in
digital marketing also pull and push are types.

In push digital marketing the marketer sends a message without the recipient actively
seeking the content, such as display advertising on websites and news blogs. Email, text messaging
and web feeds with customized contents can also be classed as push digital marketing when the
recipient has not actively sought the marketing message. Push marketing allows you to target your
demographics and use your marketing dollars to promote your product to the people you know are
interested in what you have to sell. A push marketing campaign can be more expensive when it
comes to upfront costs, so you really need to be sure that your marketing is going to reach the right
people at the right time. Behaviour targeting is good example for push digital marketing.
 In Pull digital marketing includes blogging, email marketing, social media, info graphics
and other forms of visual messaging and search engine optimization (SEO). A pull marketing
campaign also includes public relations or other ways of reaching out to potential or already
realized customers who you want to keep engaged. While a pull marketing campaign can be less
expensive to get started, you will incur costs in other ways. For example, if you are running a
social media campaign, you will need to hire someone to manage your social media and respond
to people who leave comments or ask questions. Social media gets people talking and that has a
major impact on sales. Pull marketing also requires a greater investment in time, but it gives you
more ability to entertain your customers and educate them about your company.

But don't get confused by seeing Email in push and pull, there is a difference. If marketer
is sending emails with customized content or banners to specific group of customers is push digital
marketing. If marketer is sending emails with the same content or banner to all customers is pull
digital marketing.

2.10 AIDMA as AISAS in Digital Era

AIDMA widely accepted model describing the psychological process leading up to the
consumer’s decision to purchase a product. This model is similar to AIDA model. The AIDMA
Model was first advocated by Roland Hall, an American economist, around 1920. [19]

According to this model, there are five key processes: Attention, in which the consumer
first notices the product or advertisement, followed by Interest, Desire, Memory, and Action.
This model has been used extensively in the advertising and marketing industries.

Attraction Interest Desire Memory Action

AISAS is a process model of consumers purchasing activities in the Internet age. AISAS is a
consumption behaviour model that has been advocated by Dentsu since 2004. It was developed to
observe behaviours based on the understanding that the Internet has become prevalent, and that
consumers now have access to environments in which they can obtain and transmit information
themselves.

In this model, the key processes are: Attention, in which the consumer first notices the
product or advertisement, followed by Interest. After this, the consumer Searches for information,
and then makes a purchase (Action), after which information is shared with others. In comparison
to “AIDMA,” the psychological process has become more compact, and the Action process has
expanded.

Attraction Interest Search Action Share

These changes are shown how presences in digital are important for brands. Brands can
able to create awareness and internet without digital. But it will not lead to action in current
scenario. Customers need more information in present era; they are information seeker and always
search for best deal. Brands can’t sustain without digital media.

2.11 ADVANTAGE OF DIGITAL MARKETING

Digital Advertising is increasingly an inherent budgetary component of many

organizations today. Organizations of all sizes use the medium to promote their products and
services. So well, why do so many organizations use the medium? Simply put, it is due to the
numerous advantages that online advertising offers. These are discussed in the paragraphs ahead.

Reach - The ability of the online medium to target a certain demographic of users is one of the
greatest advantages of digital advertising. In addition, the geographical reach of the online medium
is far greater than that of traditional media. It’s not only cost effective to achieve a wider
geographic area but the ads can also be targeted to the desired audience. For example, if an
advertiser is keen on selling his or her products targeted to a certain demographic of people, it is
quite possible through online advertising. Digital advertising has matured to the extent that web
publishers, media agencies and advertisers themselves know the optimal ways and websites for a
certain category of products or services.
Measurement - With various tools becoming available, tracking effectiveness of ad campaigns is
becoming possible today. In other words, measuring Return of Investment (ROI) is increasingly
possible today. Organizations that were previously reluctant to spend online, now realize that the
online medium does offer means to alleviate any such fears. Moreover, when properly designed
online marketing campaigns generate the desired results, advertisers are further encouraged to
continue advertising online.

Interactive and Engagement - The Internet is arguably the most interactive and engaging medium
among various others. Interactive campaigns have become a norm with the power of the online
medium. One such advertisement worth mentioning is the campaign by AXE where the end user
could alter the smile of a woman as he/she liked to i.e. in an interactive framework. The
advertisement struck an instant chord with the youth to which AXE the brand is positioned for
Customers are basically just a click away from the advertisers. In other words, direct response
between end users and advertisers is possible through the online medium.

Time - Through the Internet, an advertiser can reach a desired target group or demographic in a
much shorter time frame. For example, if an advertiser needs to plan some sort of ambush
marketing, the online medium can be an effective means of achieving it. Even otherwise i.e. for
regular marketing campaigns, the total time necessary to complete an online advertising campaign
is less than that of traditional advertising methods.

Cost - When compared to traditional forms of advertising, digital advertising is cheaper. Various
payment models are available between the advertisers and publishers. Many a time, advertisers are
charged only when visitors click on their ads. The various payment models are discussed in detail
in the next section.

2.12 DIGITAL ADVERTISING: Ad Avenues

Search Advertisements - Advertisements made up of text (displayed largely as sponsored links

on search engines) come under this category. These are backed by hyperlinks that when clicked
on, take the potential customer to the advertiser website.

Display Advertisements - Advertisements that are placed at various points on a web page that
typically contain logos, photographs, other images or even text. Technologically these comprise
of Image, Simple flash and Rich media with& without video ads.
Mobile Advertisements - Advertisements that are viewed or consumed on mobile phones or
tablets come under this category. These comprise of Mobile Web ads, SMS, MMS, Mobile Video
& TV ads and In-App ads.

Social Media Advertisements - Advertisements of any type: text, display, stamp pads etc
displayed on various social media websites like: Facebook, Twitter, LinkedIn, Pinterest, Orkut etc
fall into this category.

Email Advertisements - Advertisements that involve sending across a commercial message to a

group of people using email comprise of this ad type. Emails are used to engage with existing
customers to get repeat business as well as to acquire new customers.

Video Advertisements - Advertisements that fall broadly under the display type but have video
within them and are served before, during and/or after a video stream on the internet. This type
comprises In-Video ads, Standard In-Stream ads (pre rolls, mid rolls or post rolls) and True View
ads.

Some of the Basic Terms in Digital Marketing

⮚ Impression - An impression is a measure of the number of times an ad is seen, whether it

is clicked on or not. Each time an ad displays it is counted as one impression.

⮚ Page View - Viewing the page is known as page view. It gets counted once the page loaded.

⮚ Leads - When one person fills his details in the given box is known as lead.

⮚ Conversion - The percentage of people whose activity can be tracked while clicking on an
ad or visiting a website to actually purchasing a product or service. A high conversion rate
indicates that the link, ad or site was successful

⮚ Inbound link - Link connecting to your website from a different website.

⮚ Profiling - To build a picture of a target customer based on information from various

sources including customer transactions completed forms and demographic data.

⮚ Unique Visitor - Unique IP address accessing a website.

 ⮚ Landing Page - A custom we page designed to convert visitor into leads or sales. Email,
banner ads and even offline outbound marketing campaigns drive traffic to a landing page
to capture information or trigger a sale. Landing page is also called as destination page or
splash page.

Types of ads
⮚ Above the Fold- Above the fold refer to banners ads which are displayed at the top of a
web page.

⮚ Rich- media- Online ads that contain motion, sounds or video are termed as rich media
ads

⮚ Interstitial Ads- Ads that appears between web pages.

⮚ Banner Ads- Embedding an ad into a web page- know as a click through due to interactive
actions where the consumers clicks and is taken to the banner ad’s company websites

⮚ Pop-up- Ads that displays in a browser window either in the front or behind the current
browser window.

2.13 MONETORY TERM IN DIGITAL MARKETING

⮚ Cost –Per- Action (CPA) Cost of advertising based on a visitor taking some specifically
defined action in response to an ad. “Action” include such thing as a sales, transaction, a
customer acquisition or a click

⮚ Cost- Per -Click (CPC) Cost of advertising based on the number of clicks received.

⮚ Cost- Per-Thousand (CPM) The standard unit for buying or selling Internet advertising.
The thousand stands for ‘thousand advertising impression or views’.

⮚ Pay- Per- Impression Online advertising where an advertiser pays a pre-agreed price each
time a user clicks on their advertisement. The cost for the click is often negotiated through
auction, with ad placement determined by the relative size of the bid, as well as other
factors.
 ⮚ Pay-Per-Inclusion Search engine marketing programs that guarantee web site listing for
specific keyword search term for a fee.

⮚ Pay-Per-Lead Paying to acquire leads from an outside party at a set rate or amount per
lead.

2.14 BRANDING IN DIGITAL ERA

Before doing this internship, I believed marketer is responsible for building a brand or
marketer is a custodian for a brand. But while doing internship, I understood marketer is not a
custodian, he is a person who guides a product to become a brand.

Today, brand custodians are the connected users who exist across digital platforms. They
are multifaceted. They are the publishers, circulators, ambassadors, instigators and at the same
time they are the custodians as well. Their digitally connected existence has power, credibility,
influence, depth, and reach.[26] Their digital messaging has the velocity, acceleration, and
momentum required to impact brands. Yet brands and their default custodians continue to live
blissfully in an illusion about the control they exercise over their brand.

Brand is an enabler in the current age. It is the participants, the brand conversations and
the platforms that amplify the brand and drive the brand philosophy. Businesses need to, therefore,
understand the consumers and the evolving digital sphere better and continue to build brands
within the digitally connected ecosystem by focusing on the following 3 elements- [27]

People

Channles Engagements

People
 The digital age has democratized individuals. They are no longer passive consumers, but
active and creative participants. They expect and believe in the co-creation of an experience,
thereby evolving from consumers to users. They are becoming the most credible and reliable
source of the true picture of a brand. Consumers are beginning to seek a relationship of fair
exchange between themselves and the businesses where each contributes and everyone gains.
Individuals are seeking a multidimensional relationship that provides them with more than just the
brand product/service.

The fair exchange relationship is also offering new opportunities to the business to build
more human connections. Businesses will have to become receptive to this new age definition of
relationship that consumers seek. They may do well to go a step ahead and create an environment
that is receptive to this fair relationship.

Channels

With consumers evolving into users and participating in co-creation, it is important for
brands to offer those channels and platforms that allow them to participate in this process. Users
are seeking channels that offer them more than just digital promotional activities; they want
channels that allow them the freedom to be publishers of content, information and data, that give
them control over what content they produce and consume, that allow them to co-create brand
experience.

The channels also need to be device agnostic. Users are adapting to the usage of different
devices throughout the day to execute tasks at hand. They might use a smartphone or tablet
to complete functional tasks etc. while on the move, but they use a PC for heavy content creation
and research. According to a google research, 90 percent of people move between devices to
accomplish a task, with virtually all of them completing their task in one day. The most popular
starting point is the smartphone. In most cases, the tasks are continued on a PC though tablets are
also becoming a popular option for continuing social networking and watching videos.

Businesses and brands need to accept that it is the consumer who has become a more
credible publisher by virtue of their access to a device which is always on and active. Creating an
environment of device agnostic platforms and channels that allow co-creation of content between
brands and consumers will address this shift.
Engagement

It is about creating a window with enhanced attention to influence behaviour and

motivations. With every business eyeing the opportunity to engage users, it is critical to focus on
engagement by increasing brand salience and influencing buyer behaviour and choice. Brands
should be able to map a customer’s journey to understand where they can add value and create an
opportunity to engage them. Brands need to understand that engagement is not about pushing
product messages; it is about capturing the imagination and the attention of the user. It is about
designing a naturally engaging experience.

Businesses need to understand that digital environment is not about technology but about
attention, where the consumer is at the core, armed with powers like never before. Businesses and
brands should, therefore, focus on connecting the dots and realize that now, in the digital age, it is
all about co-owning a brand.

Drivers for Online Marketing

There are several factors that drive companies to follow internet marketing effectively.
Maria Bengtsson et al provide valuable information in her periodical regarding the factors that
would drive companies to implement to online marketing. They have categorized companies into
different sizes depending upon the number of employees. Their study revealed that different
factors drive companies of different sizes to pursue online marketing. The drivers are willingness
to cannibalize, entrepreneurial drivers, management support, and market pressure. Online
marketing acceptance depends on its perceived usefulness which entails the user's assessment of
the ability of specific information technology to increase his or her performance at some task or
activity (Pearson & Grandon, 2004). Internet marketing include Web application such as website,
good quality content, user interface, live chat application, secure transaction support. Success
factors of internet marketing are density, proximity, saturation and depth.

2.15 PROBLEMS IN DIGITAL MARKETING IN INDIA

Today majority of nations are adopting Online Marketing to promote products and services.
In the campaign of online marketing, countries face some issues. One of the major problems is a
gap of prosperity between developed, developing and under-developed countries. Developed
countries such as United States of America, Canada and Australia have considerably ventured the
world of Online Marketing and their investments have given huge profit. Additional research and
development activities have taken place for several times that enables them to furnish marketing
activities through electronic channels with the newest and the most advanced information
communication technology.

Meanwhile, the developing countries such as South East Asia have begun their information
technology evolution in many areas including business transactions. Education system has been
modernized by incorporating the studies of ICT, introducing incentives for entrepreneurs to go
online and improving facilities. Another aspect of Online Marketing is trust and confidence, which
are extensively attributed to safety. Lack of security is the important barrier to pervasive commerce
on the Internet due to the intrinsic openness of the web (Wen, 2001). The lack of security is
experienced in numerous ways such as unauthorized use of corporate network, packet sniffing,
data modification, unregistered transactions, eavesdropping, and repudiation and spoofing. The
threats and attacks to Internet based enterprises have included such Yahoo, E-trade and
Amazon.com. These threats and attacks weakened the three main aspects of security that are
confidentiality, integrity and availability of data. The absence of these three elements causes lack
of confidence for consumers who involve in online business.

To summarize, Online marketing use advanced technology of the Internet to market and
trade goods or services. It enhances the brand image of the company or products or both, online
marketing is a means of generating profit through online business. Trustworthiness of the country
is vital for success of internet marketing. Internet marketing can give exposure to outside corporate
world. It has been observed that some of the 3rd party online marketing provides only junk traffic
which has a negative impact on the expansion of online marketing. Online marketing offers an
opportunity for the company to expand its market nationally, even globally. Online shopping is
very competitive, as consumers have access to comparison before buying. In addition to reaching
new markets, online marketing can also improve relationships with active clientele.
 CHAPTER - 3

REVIEW OF LITERATURE AND RESEARCH METHODOLOGY

3.1 REVIEW OF LITERATURE
The purpose of doing research in the area of digital marketing is because it seems huge,
intimidating and foreign. Businesses are looking for clearer picture to start but do not know where
and how to start doing digital marketing. In today’s time, social media channels such as Face book,
Twitter, Google and other social media firms have successfully transformed the attitudes and
perceptions of consumers and in the end helped revolutionized many businesses. This was done
through measurable vast network of customers with trustworthy data with real-time feedback of
customer experiences.

It is much more convenient for businesses to conduct surveys online with a purpose to get
relevant information from targeted groups and analyzing the results based on their responses.
Potential customers can look for reviews and recommendations to make informed decisions about
buying a product or using the service. On the other hand, businesses can use the exercise to take
action on relevant feedback from customers in meeting their needs more accurately.

Digital marketing is the use of technologies to help marketing activities in order to improve
customer knowledge by matching their needs (Chaffey, 2013).

Marketing has been around for a long time. Business owners felt the need to spread the
word about their products or services through newspapers and word of mouth. Digital marketing
on the other end is becoming popular because it utilizes mass media devices like television, radio
and the Internet. The most common digital marketing tool used today is Search Engine
Optimization (SEO). Its role is to maximize the way search engines like Google find your website.

Digital marketing concept originated from the Internet and search engines ranking of
websites. The first search engine was started in 1991 with a network protocol called Gopher for
query and search. After the launch of Yahoo in 1994 companies started to maximize their ranking
on the website (Smyth 2007).

When the Internet bubble burst in 2001, market was dominated by Google and Yahoo for
search optimization. Internet search traffic grew in 2006; the rise of search engine optimization
grew for major companies like Google (Smyth 2007). In 2007, the usage of mobile devices
increased the Internet usage on the move drastically and people all over the world started
connecting with each other more conveniently through social media.

In the developed world, companies have realized the importance of digital marketing. In
order for businesses to be successful they will have to merge online with traditional methods for
meeting the needs of customers more precisely (Parsons, Zeisser, Waitman 1996).

Introduction of new technologies has creating new business opportunities for marketers to
manage their websites and achieve their business objectives (Kiani, 1998).

With the availability of so many choices for customers, it is very difficult for marketers to
create brands and increase traffic for their products and services. Online advertising is a powerful
marketing vehicle for building brands and increasing traffic for companies to achieve success
(Song, 2001). Expectations in terms of producing results and measuring success for advertisement
money spent, digital marketing is more cost-efficient for measuring ROI on advertisement
(Pepelnjak, 2008).

Today, monotonous advertising and marketing techniques have given way to digital
marketing. In addition, it is so powerful that it can help revive the economy and can create
tremendous opportunities for governments to function in a more efficient manner (Munshi, 2012).
Firms in Singapore have tested the success of digital marketing tools as being effective and useful
for achieving results. (Teo, 2005). More importantly, growth in digital marketing has been due to
the rapid advances in technologies and changing market dynamics (Mort, Sullivan, Drennan, Judy,
2002). In order for digital marketing to deliver result for businesses, digital content such as
accessibility, navigation and speed are defined as the key characteristics for marketing (Kanttila,
2004). Other tried and tested tool for achieving success through digital marketing is the use of
word-of-mouth WOM on social media and for making the site popular (Trusov, 2009). In addition,
WOM is linked with creating new members and increasing traffic on the website which in return
increases the visibility in terms of marketing.

Social media with an extra ordinary example Facebook has opened the door for businesses
to communicate with millions of people about products and services and has opened new
marketing opportunities in the market. This is possible only if the managers are fully aware of
using the communication strategies to engage the customers and enhancing their experience
(Mangold, 2009). Marketing professional must truly understand online social marketing
campaigns and programs and understand how to do it effectively with performance measurement
indicators. As the market dynamics all over the world are changing in relation to the young
audience accessibility to social media and usage. It is important that strategic integration
approaches are adopted in organization’s marketing communication plan (Rohm & Hanna, 2011).

Blogs as a tool for digital marketing have successfully created an impact for increasing
sales revenue, especially for products where customers can read reviews and write comments about
personal experiences. For businesses, online reviews have worked really well as part of their
overall strategic marketing strategy (Zhang, 2013). Online services tools are more influencing
than traditional methods of communication (Helm, Möller, Mauroner, Conrad, 2013). As part
of study, it is proven that users experience increase in self-esteem and enjoyment when they adapt
to social media which itself is a motivating sign for businesses and marketing professional (Arnott,
2013). Web experiences affect the mental process of consumers and enhance their buying decision
online (Cetină, Cristiana, Rădulescu, 2012). This study is very valuable for marketing
professional as it highlights the importance of digital marketing.

The Internet is the most powerful tool for businesses (Yannopoulos, 2011). Marketing
managers who fail to utilize the importance of the Internet in their business marketing strategy will
be at disadvantage because the Internet is changing the brand, pricing, distribution and promotion
strategy.

Pakistan has seen tremendous growth in media with 20 million people have access to the Internet
but still marketers insist on doing things the traditional way (Mohsin 2010). Management and
structure in Pakistan are still based on ancient paradigm where customers are moving ahead with
their demands and expectations. This gap is widening day by day with limited skills and mindset
available in Pakistan to solve the problem for the demanding customers. Companies in Pakistan
including the MNC’s are going the traditional way and keeping the digital aspect just to show off
in tune with the modern trends.

J Suresh Reddy has published an article named “Impact of E-commerce on

marketing”.
Marketing is one of the business functions most dramatically affected by emerging
information technologies. Internet is providing companies new channels of communication and
interaction. It can create closer yet more cost-effective relationships with customers in sales,
marketing and customer support. Companies can use web to provide ongoing information, service
and support. It also creates positive interaction with customers that can serve as the foundation for
long term relationships and encourage repeat purchases. Even cyber shopping allows customers to
sit in the comfort of their homes and purchases their goods. One can shop any kind of product or
service in the mind of the night and from any part of the world.

Vikas Bahadur (2011) has published his article on “Study on sales and marketing
strategies”.
Internet is a really good thing. The Internet gives people a greater amount of information
as we need. It is the best way to get a comparison of the products that we need. If we are interested
in buying, it is best for us to check the Web sites. Also if we would like to make our own Web
page we can do this, without paying a lot of money. From where do we set all this information?
The answer is from advertising, which we see, everywhere: on TV, on the Internet, in the
newspapers and more.Year after year we get more and more new, interesting information and in
the future the Internet use will increase more than now. This article explains how internet is useful
tool for advertisement.

Virendar Kumar published research paper entitled “Pushing and Pulling on the
Internet”
The internet is fast emerging as a domain sales channel. The Internet is expanding & it
influences consumer which shifts the consumer behavior. It has changed the way product
awareness is created28, developed new modes of product consideration. It also creates new means
of purchasing products. This has brought new opportunities, challenges and threats to both existing
and new business. Traditional advertising propagated through the conventional channels of
television, radio, and print media typically follows the AIDA (Awareness, Interest, Decision, and
Action) where advertisements are deployed to “Push” awareness to arouse interest leading to
influencing the decision and purchase action. However, the Internet is a medium where you can
serve, support and interact with consumers beyond the AIDA model objectives. Therefore, it
would be myopic to view the Internet as a mere push-marketing medium. One has to look at the
Internet as a business channel capable of performing multifunction advertising, sales, and
information exchange and after sales support. In this age of information overload, user chooses to
see, read or hear what he/she want and promptly discard the rest to move on to the next relevant
item. This is because a huge amount of self-awareness is created by Internet users actually going
out and learning about new products and services. They not only watch the Web, they use it. This
distinguishes the Internet as a pull medium as well as a push medium for information
dissemination. In such a scenario, non-relevant online advertisements such as pop-up ads or
banners run the risk of annoying users and losing them forever. It’s time for marketers to rethink
their online advertising strategy and strive to develop a more targeted and focused approach
towards their potential customers. This article explains how internet is used for pulling the new
customer and a push medium in information. Today’s customers have unique needs, interests and
demand. They use Web for getting more and more the information of the product. In this scenario
web advertisement can be used to pull the new customer and increase the sale.
Victor Van Valenhas published article “Is Your Marketing Smart?”
Today advertisers not only need to cater to and directly pinpoint a precise targeted
audience, but they need to customize their advertisements as well. In print mediums, you have an
idea of who will see your ad. For example, you know Femina magazine would be great to target
women so you can promote your new beauty product in this magazine. But when it comes to online
venues, how can you target the right audience when millions are browsing? Solution to this
problem is Yahoo! SmartAds product, an innovative new advertising platform that allows
marketers to deliver tailored ads to highly targeted audiences. SmartAds combines Yahoo!'s
consumer insights and media capabilities with new ad serving technology. It automatically
converts campaign creative and targeted offerings into highly-customized, relevant ad displays.
“Yahoo!'s SmartAds gives marketers what they want from online advertising: the ability to deliver
customized marketing messages to consumers, and still engage very large audiences with their
brand," says Todd Teresi, Yahoo!'s senior vice president of display marketplaces.

Scott F. Geld has written the article entitled “Cost savings between usual marketing
and Online Marketing”.
Marketing can be defined as 'whatever you do to promote and grow your business including
market research, advertising, publicity, sales, merchandising and distribution. With traditional
marketing techniques all of these things are delivered in print format or in person. Internet
marketing however, uses the power of online networks and interactive media to reach your
marketing objectives...no paper, no telephone calls, no in person appearances. Internet marketing
can save your time, money and resources. Electronic versions of catalogs, brochures, white papers,
data sheets etc. don't have to be printed, stored or shipped to your customers resulting in an
enormous savings in printing and storage costs. And what about manpower (or lady power) costs?
It is no longer requires as many people to handle mailing and distribution of your marketing
collateral...more savings. Updating catalogs, brochures and any other marketing collateral you
produce can be accomplished as needed online and in lightning speed. There's no need to send
revised material out to a printer and then have to wait for a revised version, a great savings in time.
And, time is money. More information can be provided to customers with little if any additional
cost. Adding more pages to a document online involves virtually no expense compared to the
additional cost and space required to deliver the same thing in print format. You can reach more
customers than ever before and it doesn't cost a penny more. There's no postage or courier charges
to pay. The difference between traditional and Internet marketing is money and Internet marketing
improves your bottom line.

Gaurav Patel. Internet marketing is the marketing of products and services using the
internet as its medium. Internet marketing as a whole is an extremely cost-effective way to reach
a worldwide population. There are many strategies available for companies that wish to use
internet marketing. Some of the more common ways are search engines, traditional media, E-
publishing, networking and paid advertising. Internet marketing is the future of marketing.
Because now-a-day that people going online and the uses of internet is increasing day by day.
Traditional media such as newspaper advertising might be cost effective but it is not comparable
to the type of audience you get from the search engines. Internet ad revenue hit a historic high of
$20.1 billion for the first half of 2013, up 18% over the same period in 2012.

Md Javed Khan and Neeshu Agarwal. The report entitled ―A study of consumer buying
behaviour towards Maggi and Foodless deals with the study of Maggi brand and Horliks foodles
that was launched in India in the year 1983, by Nestle India Limited, and foodles in the year of
2009 which became synonymous with noodles. This research paper tries to find consumer buying
behaviour towards these products. This research paper also finds of reach of foodles and Maggi.
Describes the level of involvement and types of consumer problem solving process. This research
will also explain how situational influences may affect the consumer buying decision process.
Understand the psychological influences that may affect the consumer buying decision process.

Ramya N (MBA., PGDRM., M.Com., Ph.D.,). The growth in the Indian organized retail
market is mainly due to the change in the consumer behaviour. Organized sector in retailing has
to go a long way to understand the customer requirements. Consumer behaviour is an important
factor that will help them to tap the consumer in a better way. Consumers always look for the
benefits of shopping in an organized retail store in the terms of self, selection, etc. Variety and also
seek value for the money they pay and purchasing the convenience goods. Introduction Consumer
buying behaviour refers to the buying behaviour of the ultimate customers. Consumer behaviour
has been always of great interest to marketers. A consumer buying behaviour is influenced by
social, cultural, personal and psychological factors. Consumer behaviour refers to the selection,
purchase and consumption of goods and services for the satisfaction of their wants. A
Departmental store in any city is a large retail trading organization as the level of services is very
high. Department store are very large stores offering a huge assortment of " soft " and " hard "
goods which often bear a resemblance to a collection of specialty stores.

Dr S.A. MOHAMED Ali, This article examines the consumer buying behaviour towards
Amul Products with special reference to Coimbatore City. A convenient sampling technique tool
was adopted for data collection. Sample size taken in this is 150 customers. The data is collected
through questionnaire. The buying behaviour is positive which reveals that the buying behaviour
of the consumers is high. The promotional strategies of the product can be improved to increase
the sale of the company as much. Thus, the project concludes that the buying behaviour of the
consumers are positive, so the product has a good reach in Coimbatore city. Introduction Consumer
buying behaviour is the sum total of a consumer's attitudes, preferences, intentions, and decisions
regarding the consumer's behaviour in the market place when purchasing a product or service. The
study of consumer behaviour draws upon social science disciplines of anthropology, psychology,
sociology, and economics. Consumer behaviour is broadly studied field. It lets the companies
understand how consumer decides about buying their product or acquiring services. Marketing
managers are always interested to know more about consumers' behaviour so they can prepare
better communication and advertising campaigns and messages about their products and services.
Consumer makes buying decision every day and many people don't even know the factors which
derive them to this decision. Usually, the factors affecting consumer buying behaviour include
psychological, social, cultural and Buying the new home cleaning service involves consumers'
research for the best option available and it might take various factors in account in its decision-
making process. This thesis is about studying which factors of social, cultural, personal or
psychological characteristics has the most effect on consumer decision making process when
selecting home cleaning service company. The research work is carried out to highlight the
important elements for customers in the household and let the service provider understand overall
picture of customer behaviour towards the Amul company with the help of understanding the
factors affecting consumer behaviour for choosing a certain service provider. Better understanding
of consumer behaviour would let the marketers make the service structure as desired and attractive
for the household customer and maintain business activities according to customer demands. This
research work would let the customer record their voice in understanding the companies what kind
of service do they want which can improve their life quality with the tailored services by the service
provider.

Chrishankar janathanan and Naseenth nizar, Title: Impact of digital marketing on

consumer purchase behaviour: A case study on Dialog Axiata with specific reference to social
media marketing. Purpose – The purpose of this research is to identify how the social media
marketing impact on the consumer purchase decision. The objective of this research is that to
define the term social media marketing and consumer purchase behaviour, to carry out a literature
review on the subject of consumer purchase behaviour and impact of social media, to conduct a
primary research with the help of questionnaires and interviews on the impact of social media
advertising and consumer purchase behaviour, and to review the findings and to make
recommendations to management of Dialog Axiata. Methodology – This research is based on
survey method, as the questionnaire was distributed to gather data from the public for the research
about the impact of social media marketing on consumer purchase behaviour. 184 responses were
gathered from the distribution of the google forms survey. Likewise, the interview was conducted
for further finding to be evaluated. Interview was conducted among three interviewees in Dialog
Axiata. Further, primary research also was conducted utilisation of the journal articles from the
previous researchers. Moreover, the data for this research was analysed through IBM SPSS
statistics software. Findings – In this research Cronbach Alpha, Regression for the independent
variables, Correlation for both dependent and independent and descriptive statistics was found by
using the SPSS software for this research. The hypothesis that was identified for this research were
accepted. Likewise, there was a significant positive correlation identified in this research which
help the study to prove its overall value. Value - This research helps to overcome the issues
encounter in the based articles. Also, this research develops a much functional and less complexed
process to develop social media marketing in order to predict the consumer purchase behaviour.
Keywords: digital marketing, consumer purchase behaviour, Social media marketing
 Dr. Simran Kaur, Ms. Nidhi Tandon. In the highly competitive market and technology
advancement with the usage of internet it has shifted the traditional market to digital marketing
strategies. Digital marketing grab wide area and in the highly competitive market it involve
exploring business model using digital technologies which reduces cost and expand business
globally. Today digital marketing have a greater scope of expanding their business in the future as
customers are much more satisfied by doing online shopping as they find digital marketing much
more safer than traditional marketing. Digital marketing provide opportunity to the customers to
have a look on the information of the product provided by the company and can able to do
comparison accordingly, so that they are able to enjoy right to choose and can place order at any
time 24*7 at any place. With the updated technologies and increase in the usage of internet
engagement, interconnectivity of consumers is increasing day by day as a result of which consumer
behaviour changed and organization should understand the behaviour of consumer. This research
study analyse the impact of digital marketing on consumer buying behaviour.
As a result digital marketing have positive impact on consumer buying behaviour, traditional
marketing soon should be shifted to digital marketing.

3.2 RESEARCH METHODOLGY

This project is prepared with help of theoretical knowledge as well as practical knowledge
and a crumb of advises and suggestions from the concerned professors. As far as practical is
concerned, all the information about the industry information available on internet. The theoretical
pert taken from the various books and magazines available on this subject. And other recent
happing in marketing is taken from magazines and newspaper. Overall, this mission has been
completed with the combination of all those things and it had been with the best of my facts and
information.

Research methodology refers to search for knowledge. Redman and Mory define research
as a “Systematized effort to gain new knowledge. Research is an academic activity and such the
term should be used in technical sense. According to Clifford Woody, Research comprises defining
and redefining problem, formulating hypothesis or suggested solutions; collecting, organizing and
evaluating data; making deductions and research conclusions; and at last carefully testing the
conclusions to determine whether they fit the formulating hypothesis.
 Research is thus an original contribution to the existing stock of knowledge making for its
advertisement. It is pursuit of truth with the help of study, observation, comparison and
experiment. In short, the search for knowledge through objective and systematic method of finding
solution to problem is research.

3.3 RESEARCH DESIGN

A Research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the Research purpose with economy in procedure. In
fact, the Research design is the conceptual structure within which Research is conducted: it
constitutes the blueprint for the collection measurement and analysis of data.

It must be able to define clearly what they want to measure and must find adequate methods
for measuring it along with a clear-cut definition of population wants to study. Since the aim is to
obtain complete and accurate information in these studies, the procedure to be used must be
carefully planned. The research design must make enough provision for protection against bias
and must maximize reliability with due concern for the economical completion of the search study.

Descriptive research is adopted for this study. It includes surveys and fact finding enquires
of different kinds. The major purpose of descriptive research is description of the state affairs as it
exists at present. The main characteristic of this method is that the researcher has no control over
the variables. He can only report what has happened or what is happened.

The two types of research are as follows:

Exploratory research - It is to generate new ideas.

Descriptive research - They are well structured. It can be complex, a high degree of scientific
skill on the part of the demanding a high degree of scientific skill on the part of the researcher. It
can be taken in certain circumstances. When the researcher is interested in knowing the
characteristics of certain groups such as, gender, profession, a descriptive study may be necessary.
In this I did descriptive research also because I want to know the consumer satisfaction level,
consumption pattern and preferences towards digital marketing.

3.4 DATA COLLECTION

Selection of Data collection Method

Secondary data- Secondary data is collected from already existing sources in various organization
broachers & records. Secondary data for the study were collected from the magazines, websites &
other previous studies.

To meet the objectives, the study used qualitative research. The descriptive study was done through
review of existing literature that helped in validation and extraction of the important variables and
factors. Data was collected from secondary sources. Secondary sources were magazines, websites,
books, office executives, company data, internet and other researches.

Primary data- It is a first-hand data which is collected by you only. The different way of collecting
primary data is personal interview, questionnaire, survey etc. Data was collected through a
questionnaire to understand the consumer buying behaviour of Indians in digital era.

Primary considerations

Sample plan - Sample was collected using simple random sampling.

Sample size - 100 respondents

3.5 SAMPLING TECHNIQUES

A sample design is a definite plan for obtaining a sample from the sampling frame, it refers
to the technique or procedure the researcher would adopt in selecting some sampling units from
which interferences about the population is drawn. Sampling type used is Simple Random
sampling technique.

3.6 DATA COLLECTION SOURCE

Data is one out of two types, either primary which is collected by the researchers or
secondary data which is gathered by other researchers. Project consist both secondary data and
primary data.

3.7 STATISTICAL TOOL

The statistical tool used in this project is percentage analysis.

 CHAPTER - 4
DATA ANALYSING AND INTERPRETING
DATA ANALYSIS

This chapter is data analysis, in the chapter the data collected through questionnaires was
analysed. As the primary research method was survey, questionnaire was distributed among people
via email, google forms, what’s app and Facebook. This chapter will first show the sample and
analyse the target sample. Then according to research objectives, the finding was discussed and
analysed.

RESULTS AND DISCUSSIONS

1.How do you get information about new Products?

TABLE:4.1Distribution of get to know about the information of new products by respondents.

OPTIONS FREQUENCY PERCENTAGE

Other sources 7 7%

News 13 13%

Advertisement 40 40%

Family 10 10%

Friends 30 30%

Total 100 100%

CHART:4.1 Distribution of get to know about the information of new products by respondents.
 Other Sources 7%

News 13%

Advertisements 40%

Family 10%

Friends 30%

Interpretation: Most of the respondents are able to get information through advertisements and
second near highest is through friends. Less than 15% through news, family and other sources.

2. Do you Collect information before purchasing the products?

TABEL:4.2 Distribution of whether the respondents collect information before the purchase.

OPTIONS FREQUENCY PERCENTAGE

Yes 95 95%
No 5 5%
Total 100 100%

CHART:4.2 Distribution of whether the respondents collect information before the purchase.

5%

Yes
95% No

Interpretation: Out 100 respondents, 95 respondents are collecting the information about the
product before they buy and 5 respondents they don’t collect.
3. What type of information will you collect?

TABEL: 4.3 Distribution of what type of information respondents collect.

OPTIONS FREQUENCY PERCENTAGE

Customer’s experience 21 21%

Quantity 11 11%

Attributes 10 10%

Quality 32 32%

Price 26 26%

Total 100 100%

CHART: 4.3 Distribution of what type of information respondents collect.

 Customer's Experience 21%
Quantity 11%
Attributes 10%
Quality 32%
Price 26%

Interpretation: The respondents are more bother about their product’s quality(32%), price(26%)
and customer’s experience(21%). And least bother about the quantity(11%) and attributes (10%).

4. Did you ever purchase from an online site?

TABEL: 4.4 Distribution of respondents whether they have purchased from online.

OPTIONS FREQUENCY PERCENTAGE

Yes 81 81%

No 19 19%

Total 100 100%

CHART:4.4 Distribution of respondents whether they have purchased from online.

 19%

Yes
81% No

Interpretation: Out of 100 respondents, 81% of them have habit of purchasing from online and
only 19% of them they don’t have a habit purchasing from online.

5. what type of product / services did you purchase online?

TABEL: 4.5 Distribution of type of product/service respondents purchase from online.

OPTIONS FREQUENCY PERCENTAGE

Electronics 22 22%

Books 11 11%

Travel products 17 17%

 Fashion accessories and clothes 19 19%

Kitchen and home items 2 2%

Toys 2 2%

Sports equipment 11 11%

Gifts 13 13%

Automotive 3 3%

Total 100 100%

CHART: 4.5 Distribution of type of product/service respondents purchase from online.

Electronic 22%
Books 11%
Travel products 17%
Fashion accessories and clothes 19%
Kichen an home items 2%
Toys 2%
Sport equipments 11%
Gifts 13%
Automotives 3%

Interpretation: Out of 100 respondents, 22% of them prefer to buy from online electronics, 11%
books, 17% travel products, 19% fashion accessories and cloths, 2% kitchen on home items, 2%
toys, 11% sports equipment, 13% gifts and 3% automotive.

6. Do you watch television?

TABEL: 4.6 Distribution of respondents watching television.

 OPTIONS FREQUENCY PERCENTAGE

Yes 93 93%

No 7 7%

Total 100 100%

CHART:4.6 Distribution of respondents watching television.

7%

YES
NO
93%

Interpretation: From the above pie chart we can understand that 93% of them watch television
and 7% of them don’t watch television.

7. Do you watch television programs through online?

TABEL:4.7 Distribution of respondents watching television through online.

 OPTIONS FREQUENCY PERCENTAGE

Yes 53 53%

No 47 47%

Total 100% 100%

CHART: 4.7 Distribution of respondents watching television through online.

47% Yes
53% No

Interpretation: Out of 100 respondents, 53% of them watch television programs mostly through
online and 47% of them don’t watch television programs through online.

8. Do you read Newspapers?

TABEL: 4.8 Distribution of respondents who read newspaper.

OPTIONS FREQUENCY PERCENTAGE

Yes 93 93%

No 7 7%

Total 100 100%

CHART:4.8 Distribution of respondents who read newspaper.

 7%

YES
NO
93%

Interpretation: From the above pie chart 93% of them have a habit of reading the newspaper and
7% of them don’t.

9. Do you read the News through online?

TABEL: 4.9 Distribution of respondents of who read newspaper through online.

OPTIONS FREQUENCY PERCENTAGE

Yes 74 74%

No 26 26%

Total 100 100%

CHART: 4.9 Distribution of respondents of who read newspaper through online.

26%
YES
No
74%

Interpretation: From the above pie chart 74% of them use online format of reading news paper
and 26% of them don’t read from online newspaper.
10. Do you have mobile phone or smartphones?

TABEL: 4.10 Distribution of respondents who have mobile phones.

OPTIONS FREQUENCY PERCENTAGE

Yes 99 99%

No 1 1%

Total 100 100%

CHART: 4.10 Distribution of respondents who have mobile phones.

1%

YES
NO
99%

Interpretation: Out 100 respondents, 99% of them have smartphones and only 1% of them don’t
have smartphones.

11. Do you have a laptop or PC?

TABEL: 4.11 Distribution of respondents who have laptop or PC.

OPTIONS FREQUENCY PERCENTAGE

Yes 94 94%

No 6 6%
 Total 100 100%

CHART: 4.11 Distribution of respondents who have laptop or PC.

6%

YES
NO
94%

Interpretation: Out of 100 respondents, 94% of them have laptops and 6%of them don’t have
laptop.

12. Do you have a tablet?

TABEL: 4.12 Distribution of respondents who have tablet.

OPTIONS FREQUENCY PERCENTAGE

Yes 30 30%
No 70 70%
Total 100 100%

CHART: 4.12 Distribution of respondents who have tablet.

30% YES
70% NO
Interpretation: From the above pie chart 30% of them have tablet and 70% of them they don’t
have tablet.

13. Do you have an internet connection in any of the above mentioned gadgets?

TABEL: 4.13 Distribution of respondents who have internet connection with gadgets.

OPTIONS FREQUENCY PERCENTAGE

Yes 96 96%

No 4 4%

Total 100 100%

CHART: 4.13 Distribution of respondents who have internet connection with gadgets.

4%

YES
NO
96%

Interpretation: Out of 100 respondents, 96% of them have internet connection with their gadgets
and only 4% of them don’t have internet connection with their gadgets.
14. When do you use these gadgets?

TABEL: 4.14 Distribution of respondents when they use the gadgets.

OPTIONS FREQUENCY PERCENTAGE

With friends 33 33%

Office 26 26%

College 16 16%

Watching TV 25 25%

Total 100 100%

CHART: 4.14 Distribution of respondents when they use the gadgets.

 With friends 33%

College 26%

Office 16%

Watching T.V 25%

Interpretation: From the above graph 33% of them use these gadgets mostly when they are with
friends, 26% when they are in college, 16% of them when they are at office and rest of the 25% of
them use when they are watching T.V.

15. What you do with these gadgets?

TABEL: 4.15 Distribution of respondents what they do with the gadgets.

OPTIONS FREQUENCY PERCENTAGE

Chatting 21 21%

Watching videos 14 14%

E-books 6 6%

Blogging 6 6%

News reading 11 11%

 Shopping 12 12%

Surfing 16 16%

Games 14 14%

Total 100 100%

CHART :4.15 Distribution of respondents what they do with the gadgets.

Chatting 21%

Watch Videos 14%

E- books 6%

Blogging 6%

News reading 11%

Shopping 12%

Surfing 16%

Games 14%

Interpretation: From the above graph 21% use their gadgets for chatting, 16%use for surfing,
14% use for watching videos, 14% use for playing games, 12% use for shopping, 11% use for
reading news, 6% use for reading E-books and other 6% use for blogging.

16. Do you ever notice advertisement?

TABEL: 4.16 Distribution of respondents whether they notice advertisement.

OPTIONS FREQUENCY PERCENTAGE

Yes 97 97%

No 3 3%
 Total 100 100%

CHART: 4.16 Distribution of respondents whether they notice advertisement.

3%

YES NO

97%

Interpretation: Out of 100 respondents, 97% of them notice the advertisement and 3% of them
don’t notice the advertisement.

17. From where do you notice advertisements?

TABEL:4.17 Distribution of respondents from where do they notice the advertisement.

OPTIONS FREQUENCY PERCENTAGE

 Radio 6 6%

OOH 6 6%

Magazines 14 14%

Newspaper 17 17%

Online ads 35 35%

TV 22 22%

Total 100 100%

CHART: 4.17 Distribution of respondents from where do they notice the advertisement.

Radio 6%

OOH 6%

Magazines 14%

Newspaper 17%

Online Ads (Banner &

35%
Videos)
TV 22%

Interpretation: From the above graph 35% of them notice advertisement through online ads, 22%
of them notice through T.V, 17% of them notice through newspaper, 14% of them notice through
magazines, 6% of them notice through radio and other 6% of them notice through OOH

18. Mention one form of media, which you give more importance?

TABEL: 4.18 Distribution of respondents give more importance to form of media.

 OPTIONS FREQUENCY PERCENTAGE

Radio 4 4%

OOH 3 3%

Newspaper 11 11%

Online 48 48%

TV 34 34%

Total 100 100%

CHART: 4.18 Distribution of respondents give more importance to form of media.

Radio 4%

OOH 3%

Newspapers 11%

Online 48%

TV 34%

Interpretation: Out of 100 respondents, 48% of them give more importance to online form of
media, 34% of them give more importance to T.V form of media, 11% of them give more
importance to newspaper form of media, 4% of them give more importance to radio form of media
and 3% of them give more importance to OOH.
19. How do you normally purchase a product?

TABEL: 4.19 Distribution of respondents how do they purchase a product.

OPTIONS FREQUENCY PERCENTAGE

Visit and purchase from retail 19 19%

shop itself

Visit the retail shop and 7 7%

purchase from laptop

Visit the retail shop and 4 4%

purchase from mobile

Research and purchase from 11 11%

laptop

Research and purchase from 6 6%

mobile
Research in mobile and 10 10%
purchase from laptop

Research in laptop and 22 22%

purchase from retail shop

Research in mobile and 21 21%

purchase from retail shop

Total 100 100%

CHART: 4.19 Distribution of respondents how do they purchase a product.

Visit and purchase from retail shop itself 19%

Visit the retail shop and purchase from laptop 7%

Visit the retail shop and purchase from mobile 4%

Research and purchase from laptop 11%

Research and purchase from mobile 6%

Research in mobile and purchase from laptop 10%

Research in laptop and purchase from retail shop 22%

Research in mobile and purchase from retail shop 21%

Interpretation: From the above graph 22% normally purchase a product by research in laptop and
purchase from retail shop, 21% of them by research in mobile and purchase from retail shop, 19%
of them by visit and purchase from retail shop itself, 11% of them by research and purchase from
laptop, 10% of them by research in mobile and purchase from laptop, 7% of them by visit the retail
shop and purchase from laptop, 6% of them by research and purchase from mobile and 4% of them
by visit the retail shop and purchase from mobile.
20. After purchase, what type of experience will you share with others?

CHART:4.20 Distribution of respondents what type of experience they share with others.

OPTIONS FREQUENCY PERCENTAGE

Nice price deal 14 14%

Bad experience 2 2%

Good experience 17 17%

All the above mentioned 67 67%

Total 100 100%

CHART:4.20 Distribution of respondents what type of experience they share with others.

Nice deal, in terms of price 14%

Bad experience 2%

Good experience 17%

All the above mentioned 67%

Interpretation: The respondents, 67% of them share all their experience by online purchase with
other all of the above mentioned i.e., nice deal, in terms of price, bad experience and good
experience, 17% only share their good experience with others,14% of them share only their nice
deal with pricing with others and 2% share only their bad experience with others.

21. How will you share your experience with others?

TABEL: 4.21 Distribution of respondents how they share experience with others.

OPTIONS FREQUENCY PERCENTAGE

Face to face talk 37 37%

In company website 4 4%

Write a blog 3 3%

Messaging 24 24%

Social networking sites 32 32%

Total 100 100%

CHART:4.21 Distribution of respondents how they share experience with others.

 Face to face talk 37%

In company website 4%

Write a blog 3%

Messaging 24%

Social networking sites 32%

Interpretation: From the above graph 37% of them share their experience with others by face to
face talk, 32% of them share thei6r experience with others by social networking sites, 24% of them
share their experience with others by messaging, 4% of them share their experience with others in
company’s website and 3% of them share their experience with others by writing a blog.

CHAPTER - 5

FINDINGS, SUGGESTIONS AND CONCLUSION

5.1 FINDINGS

⮚ Indian customers are highly information seekers. They collect more information about
quality, price and refer customer’s experiences before purchasing a product.
⮚ Advertisements have high impact for creating stimulus in Indian customers. But this
stimulus will get in to action only through opinion leaders.
⮚ Indian consumers have high tendency to go for online purchase. They have high affinity to
go online for electronic products and apparels.
⮚ One of the current trends in Indian youth and young Indians are watching the T.V programs
via online portals. May be the main reason is convenience of time, they can watch programs
which they had skipped due to some reasons.
 ⮚ The same thing is happening for the newspaper also, people have more affinity towards
online news portals. Here's the reason maybe they can get news updates very early; they
don’t need to wait for daily newspapers.
⮚ From the first part of this research itself, we know that customers are highly information
seeker. It may be the reason for high trust in online ads. They can search for more
information after seeing an ad or online is the only two-way communication channel for
customers.
⮚ Most of the Indians prefer to purchase from a retail shop only, but before going to retail
shop they will seek information about the product through an online platform. Here is
actually change happens in consumer buying journey, early times consumer belief a
product only after seeing the product in a retail shop.
⮚ But now Indian customers want to get conviction about a product before going to retail
shop. So, from a marketer’s view they want to convince their customers before going to a
retail shop.
⮚ Brands want to build a cool presence over digital platforms because the customer will do
research about the product after seeing an ad or after getting stimulated.
⮚ Brands are getting more touch points to reach target group in a cost-effective manner.

5.2 SUGGESTIONS

It is found that in this segment the important features considered by the customers while buying
from online are its quality, price & customer experience. So, digital marketer has to consider these
aspects to attract and retain customers thus making an effort to build a good brand image.

⮚ Discount on products also act as influencing factors for purchase decision. So, dealer can
give discounts on products.
 ⮚ Most of the customers buy some expensive product from bank loan rather than financial
companies. So, the companies have to come up with attractive loan facilities to their
customers.
⮚ Word of mouth is effective media of communication. Hence the dealer should keep the
existing customers happy by providing good service and make customers talk good about
their service provided.
⮚ Delivery services can be improved mainly in rural areas by selecting appropriate courier
service which has service in customer area for dispatching an item.
⮚ Can make free delivery to all priced products.
⮚ Can include more coupons codes and gifts vouchers for increasing the traffic of the
customers.
⮚ Out of stock items can made available as soon as possible and intimate the needed
customers.
⮚ Should comprehensively invest into E-CRM and online reputation management.
⮚ Logistics and supply chain: can continuously aim to reduce the delivery time cycle.
⮚ Price will still be a factor as online marketing being a huge industry will use its economics
of scale to remove their competitors from the market; therefore they need to be more
competitive on that aspect.

5.3 CONCLUSION

The successful completion of this project indicates that the future of marketing is in the
hands of digital. Digital marketing is not only concerned with placing ads in portals, it consists of
integrated services and integrated channels. Marketers want to use these components in an
effective way to reach target groups and to build a brand. In this digital era marketer is not the
custodian for a brand, people who are connected across the digital platforms are the custodians.

Brands want to build their presence over digital platform, because customers have high
affinity towards digital media than other media’s. More than that customers are highly information
seekers and digital media is the only platform for two-way communication between brands and
customers.

Digital media is the best platform to convert a product to a brand. Because it is more cost
effective and it provide lot of touch points to marketer. Brands can able to engage their target group
in an effective way through digital platforms. Digital media is not only for engagement, brands
can increase their customers or they can retain their existing customers. Digital platforms help to
increase the impact of brand recall in target groups.

The research focused on the consumer buying behaviour shows that, Indian consumers are
highly information seeker and they will do research about a product before going to a retail shop.
So, brands want to give platforms to consumers to understand their product or to get a really feel
of that brand.

I honestly believe that this project report will be at most useful for marketers to understand
the digital marketing and also to plan for future strategies.

I conclude my research by quoting again that “Brands can’t sustain without digital
presence”.

APPENDIX

Questionnaire
Consumer Buying Behaviour in Digital Marketing

1.How do you get information about products?

o Friends
o Family
o Advertisements
o News
o Other sources
2.Do you collect the information before purchasing the product?
o Yes
o No
3.What type of information will you collect?

o Price
o Quality
o Attributes
o Quantity
o Customer's Experience
4.Did you ever purchase from an online site?

o Yes
o No
5.What type of product/ service did you purchase online?

o Electronic
o Books
o Travel Products
o Fashion accessories and clothes
o Kitchen and Home items
o Toys
o Sports equipment
o Gifts
 o Automotive
6.Do you watch television?

o Yes
o No
7.Do you watch television programs through online?

o Yes
o No
8.Do you read newspaper?

o Yes
o No
9.Do you read News through online?

o Yes
o No
10.Do you have mobile phone or smartphones?

o Yes
o No
11.Do you have a laptop or PC?

o Yes
o No
12.Do you have a tablet?

o Yes
o No
13.Do you have internet connection in any of the above mentioned gadgets?
o Yes
o No
14.When do you use these gadgets?

o While watching TV
 o Office
o College
o With friends
15.What you do with these gadgets?

o Games
o Surfing
o Shopping
o News reading
o Blogging
o E-booking Reading
o Watching Videos
o Chatting
16.Do you ever notice advertisements?
o Yes
o No
17.From where do you notice the advertisement?

o TV
o Online ads
o Newspapers
o YouTube
o Magazines
o Out Door Hoardings
o Radio
18.Mention one form of media from the list below, which you give more importance?

o TV
o Online
o Newspaper
o YouTube
o Out Door Hoarding
o Radio
 o Display ads in shops
19.How do you normally purchase a product?
o Research in mobile and purchase from retail shop
o Research in laptop and purchase from retail shop
o Research in mobile and purchase from laptops
o Research and purchase from mobile
o Research and purchase from laptop
o Visit the retail shop and purchase from mobile
o Visit the retail shop and purchase from laptop
o Visit and purchase from retail shop itself
20.After purchase, what type of experience will you share with others?

o Nice deal which you got in terms of price

o Bad experience with the product
o Good experience with the product
o All the above mentioned
21.How will you share your experience with others?
o Social networking sites
o Messaging
o Write a blog
o In company website
o Through face to face talk

Age

Gender
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