Research Title How important online marketing and how it influence consumer buying decision making process?

A case study of Tesco superstore.

Abstract As per the requirement of this paper the writer identified a research question that is how important online marketing and how it influence consumer buying decision making process. The study of e-consumer behavior is gaining in importance due to the proliferation of online marketing (Dennis et al., 2004; Harris and Dennis, 2008). With the development of technology today organizations are doing their business mostly depending on the technology. Online marketing is moving elements of marketing strategies and activities to a computerized, networked environment such as the Internet. To make this research success it has started with the Aim of To evaluate the impact of online marketing on customer decision making process. To make the Aim of research fruitful this research set up some objectives. The objectives of this study are to identify critical factors which drive buying decisions of customers; to identify tools for setting online promotion strategies; and to evaluate the extent of influence of online promotion on customer buying decision. And to achieve the research objective the researcher has carried out an empirical study among 15 respondents selected as non-probability sampling for in-depth interview from the selection from around 100 Tescos customers. The researcher has given long-time for interviews with these selected respondents following a predetermined questionnaire. Findings of the interviews have been analyzed using content analysis and narrative analysis.

Table of Contents Contents 1.1 Selection of a research question 1.2 Explanation of the factors that contribute to the process of successful research question selection 1.3 Justification of choice of research question 2.1 Research to find literature relevant to the research question 2.2 A critical review of the key literature for inclusion in a research proposal 3.1 Evaluation of techniques for use with quantitative data in a research proposal 3.2 Evaluatation of techniques for use with qualitative data in a research proposal 4.1 Evaluatation of appropriate research methodologies in terms of the research question 4.2 Choice of an appropriate methodology in terms of the research question 4.3 Justification of the methodology selected in terms of the research question 5.1 Findings on a research question, literature review and methodology in an agreed format 5.2 Summary of the findings using suitable methods 5.3 Presentation of the findings using suitable methods 5.4 Critical analysis of the findings References Page No. 04 04 05 06 06 10 10 10 12 13 14 14 14 14 15

1.1Selection of Research Question How important online marketing and how it influence consumer buying decision making process?

1.2 Factors that contribute to the process of successful research question selection Decision making of the customer is always a complex issue and there are many variables related to this discussion. Different perspective indicates the momentum in different level. Previous literatures have mentioned a diverse process. Some researcher said that consumers are run by the values (Levy 1999). This value counted by the consumer through the evaluation of the product services and the attitude factors. Perception also differs regarding the purchasing capacity of the consumers. From the theoretical ground customer basically use one or two indicators as mentioned in the cue utilization theory (Richardson et al 1994). Price is the big factor always. Quality is always an important variable at the same time there is a concern for the customer with high financial support and status. According to the quick development in Information Technology worldwide, this information technology has been used as a new tool for marketing. Online shopping system has an impact in the purchasing capability and the system of purchase in different level of the decision making process (Zeng and Reinartz 2003). It indicates that the most important task of marketing is in the crucial period when the consumer is in confusion among different products and ultimately picks the desired one (McGinnis 2010).At present companies follow online marketing strategies to promote their product. Depending upon the buying decision of the consumers online companies or other IT companies promote marketing strategies. Online marketing has great impact on decision making of customers. Customers may shift from one product to another product due to online marketing. Now with the passage of change in technology online marketing has been getting popularity (Chatterjee& McGinnis, 2010).

Purpose of the Study The main tenacity of this research study is to find out the major issues that influence the customer in the online shopping and marketing. In fact the decision of the consumer takes place by the interactions between them and the variables that can influence in the online shopping. As the technological advancement and practice is strongly related to the purchasing behavior of the consumer in online, it is important for the company to utilize the possibilities in terms of accessing the online marketing. It is important to read the psychology of the customer regarding the choice in online marketing. Technological issues are always changing and there should have a policy to adopt with the change accordingly. Aims and Objectives of the Study Aim of this study is to evaluate the impact of online marketing on customer decision making process.

1.3 Justify their choice of research question The objective of this research is to analysis the importance of the online marketing and its process of affecting the consumers choice regarding the purchasing sense. The concept of eshopping and the choice of the consumer are taking an important position gradually in the marketing world (Harris and Dennis 2008). At the same time the gradual change in the technological sector is adopting by the companies rapidly. It becomes the depending options for the business sector and also a popular means for the marketing now a days. Customer can easily shop through online without going out of home. Its saving time and cost for the customer. Traditional shopping culture is changing gradually (BRC 2008). For this research paper Tesco will take as the case company regarding the online shopping and rationality building.

2.1 Research to find literature relevant to the research question Literature review helps to understand various empirical researches related to a study. So literature review of this study has been prepared considering marketing communication, decision making factors in online or normal buying and online promotion.

2.2 A critical review of the key literature for inclusion in a research proposal

Marketing For supporting the companies, marketing needs to have strategies in creating, communicating and delivering service to the consumer. It will make the relation between the company and the customer for maximizing the profit in the long run (American Marketing Association 2004). Marketing Communication Marketing communication indicates the total process product or service communicating that starts with identifying needs and wants of the customers and ends with evaluation of post purchase decisions (Chatterjee 2010).

Marketing communication starts with identification of needs and wants of customers. When customer identifies their needs they need to have information about product and services. So, customers search for information to buy a product or service. At the same time organizations provide information about their product and services (Chatterjee 2010).

At present one of the most important ways of providing information and assessing information is online system. Organizations provide information to the customers through online system considering attributes of the products and services. This information can be provided through website of the customers, electronic add, email system, social communication site, and other online system. Consumers can also evaluate information through online system (Broekhuizen & Huizingh, 2009). Evaluating information consumers take their buying decisions. So, online marketing system can play a vital role in marketing communication. Consumers Decision Making Factors Decision making regarding a product differs considering various factors. These factors are necessary to evaluate before setting marketing strategies. There are various factors related to the decision making of the customer in online shopping. Product pattern of the major company has a significant role in marketing (Kiang and Chi 2001). Communications pattern, updated marketing, frequent feedback in online is also important for sensitizing the choice of the customer in online shopping. Social contexts, proper knowledge about the e-marketing are some forecasters about the online purchase (Foucault and Schufele 2002). Online Promotion Promotional issues are strongly connected with the marketing strategy of the company in the present days. It is all about making the consumers aware about the product and makes them an impressive idea to purchase that product. It changes the focus of the customer from the traditional issues like the price and quality through making him convinced by the promotional appeal. The technological advancement change the scenario of the traditional promotion and the online based promotional activities are taking the place. According to the statistics of 2009 there was total $1.6 billion spend for online promotion of the products alone in USA (Chatterjee and McGinnis 2010). In this type of promotional activities the use of webpage, distinct website, and advertising in the most visited sites are taken as the priority area (May and Wong 2005). Email is also an important source.

Online marketing and Tools Online marketing is an important element in the marketing activity and strategy regarding the technological development. It create, distribute, promote and value the product and the service in an especial part of the market (Chaffey et al 2006).There are various techniques and strategies in terms of approaching the online marketing. Search Marketing Almost 90% online user responded that they use the Google and Bing in search for the information and necessary ideas (Chaffey and Smith 2005). Thats why every organization should have a website so that the customer can have the search access. It will be tough for the customer if there is absence of such website in internet. It also provides the available information as required to make the choosing decision by the customer (Moran and Hunt 2006). Options like the search engine optimization and pay per click is becoming much popular now a days. Online PR Online public relation is a very useful means for the online marketing of the company and its product. Some very practicable method in this regard areCommunications via the journalist and regular submission of the press release of the

company in online news spaces. Making the editorial section by joint venture and giving the link in the news Different blog and online communities like the renowned papers, journals, and entertainment sides should get focus and the information regarding the company and its product should place there with a proper context

E-Mail Marketing Connection of the internet is important for this email service and no doubt this email system has brought a revolutionary change in the technological development as well the marketing of the product (Lewis 2002). This connection was started with the telephone call in the west but gradually email system replaces the traditional method. There are 3 main ways in the email marketing and this areCold email Co brand email and Third parties involvement through newsletter

Online Partnerships Online partnership is a very important factor in the recent marketing culture of the global world. There are 3 types of online partnershipMaking links Affiliating marketing and Sponsoring online Building links is all about the exchange ideas about the quality in every possible ways. In affiliate marketing the means is about the joint advertisement in online and frequent visit to there and share the regarding information (Gallaugher et al 2001). It is the direct involvement and promotion of the company name and logo. It is a very strong branding. There is a differentiation in this type of branding. In recent days online sponsorship is getting much attraction because of its standard (Ryan and Whiterman 2000). Interactive Ads The ad which goes beyond clicking is known as interactive ads (Garrand 2000). In these websites the owner permit the visitor in playing games, in image animation with just clicking the mouse. Banner ad, rich media are some very useful interactive ads. Consumer behavior and Marketing Communication There needs to have research on the consumer behavior because it matters for the business. There are 6 factors included in the following regarding the purchasing behavior of the customerProblem Recognition Information Search Information Evaluation Decision Making Post Purchase Evaluation

3.1 Evaluation of techniques for use with quantitative data in a research proposal Research method is most important in conducting a research. There are two research methods. One is qualitative research method and another is quantitative research method. Roulston (2001) stated that, in case of qualitative research method emphasize is given on the specific people or situation. This method is based on words not in numbers. 3.2 Evaluatation of techniques for use with qualitative data in a research proposal One the other hand Gorard (2009) stated that, quantitative research method is totally dependent on the numerical data. This study will evaluate online promotion strategies and how it influence buying decision of the customers. So, this study is completely related to a situation rather than numerical data. So, this study will follow qualitative research method. In the qualitative methodologies rigidity in the responses does not present unlike quantitative method. Qualitative method is more involved to the use of academic observation rather than direct plain measuring.

4.1 Evaluatation of appropriate research methodologies in terms of the research question Research methodology helps to identify the meaning of the research study and research methodology at first and then adopting the methodology considering the research study. This is one through considering various studies and considering empirical opinions. This methodology section will evaluate data collection, sampling, and various analytical methods that are required to adopt to conduct the study. Saunders et al (2007) stated that, research means discovering and obtaining answer to various problems with the help of various types of methods. Research Philosophy Hasslingeret al, (2007) cited Saunders et al (2007) stated that, when research is being collected and analyzed there are three major philosophies. These are positivism, realism and Interpretivism. This study is related to physiological and existent matter, developed hypotheses will be tested and sample size to collect research data is quite large. So, interpretivism will be followed here. Interpretivism research philosophy explains that reality can be understood only by intervention and subjective reality of the study. Interpretivism helps researcher to provide information on the basis of true situation. Research Approach Two common research approaches are deductive and inductive research approach. Saunders et al (2007) stated that, inductive research approach is related to set of theory using the collected data and deductive research approach helps to test the collected data with theory. This study will follow inductive research strategy. Because inductive study of research study begins by data collection, different types of pattern are examined, and idea is framed in the mind which leads to a theory. Research Strategy There are different form of research strategy like the experiments, case study, surveys, action research and many others. Primary data for the case study is collected through the interview and in many cases for the authentication of data primary data collection method is very important (Descombe 2003).

It is better in use of case study as every elements of the research study and process is involved here (Zikmund 2000). Case study basically focus on the 2 core question how and why and in the whole process it goes for the findings of these two questions (Yin 2003). The researcher will use the case study for this research. Sampling technique This research study will follow non-probabilistic sampling techniques to select respondents as there are lots of consumers who are buying their online products. Sample Collection Sample will be the customers who buy products mainly being influenced through online system. 15 respondents will be selected to provide information. All of those participants are should Tesco customer. Secondary also be collected from various recent research journals and publications to justify and facilitate primary data. Data Collection Techniques There are basically two types of data and these are the primary data and the secondary data. As the research will mainly focus on the primary data collection in seeking some core information, it will make through the questionnaire by the respondent. In depth interview with semi structured question pattern will be used in the process. This research demands the response from the individual and related personnel, and thats why its important to go for the in depth interview based on the semi structured pattern. It will help to get a close idea from the field rather than the mare documents. 4.2 Choice of an appropriate methodology in terms of the research question Research Philosophy: interpretivism will be followed here Research Approach: This study will follow inductive research strategy Research Strategy: The researcher will use the case study for this research. Sampling technique: 15 respondents will be selected as non-probability sampling for in-depth interview from the selection from around 100 Tescos customers. Data Analysis Tools: Through content and narrative analysis the findings of the research will be further examined. In the academic field the use of content analysis is widely appreciated. By this a researcher can go for a clear idea over the collected information and make a categorical statement. It helps in investigating further as well in searching the inner meaning of the findings. It will also help to relate the data with the study process both practically and theoretically (Conway 2008). In making the content analysis its important to make the categorical set up of the collected information from the field. Different ideas, thoughts, views will lead the categorization process (Conway 2008). On the other hand the narrative analysis comes with the oral or the written information and ideas from the ground. There is an especial focus on the human psychology and it goes for the life cycle study in many cases. Through the narrative analysis the researcher can find the meaning hide in between the line which is very important for the critical explanation of the research paper. It also focuses on the emotional issues and the reassembled image of human being (Andrews 2008). 4.3 Justification of the methodology selected in terms of the research question This study is related to physiological and existent matter, developed hypotheses will be tested and sample size to collect research data is quite large. So, interpretivism will be followed here. This study will follow inductive research strategy. Because inductive study of research study

begins by data collection, different types of pattern are examined, and idea is framed in the mind which leads to a theory. It is better in use of case study as every elements of the research study and process is involved here (Zikmund 2000). Case study basically focus on the 2 core question how and why and in the whole process it goes for the findings of these two questions (Yin 2003). The researcher will use the case study for this research. Timescale & Research Planning Five weeks has been taken as the expected timeline for this paper. The following chart is showing the process and steps of the research activities-

5.1 Findings on a research question, literature review and methodology in an agreed format The study of e-consumer behavior is gaining in importance due to the proliferation of online marketing (Dennis et al., 2004; Harris and Dennis, 2008). With the development of technology today organizations are doing their business mostly depending on the technology. Online marketing is moving elements of marketing strategies and activities to a computerized, networked environment such as the Internet. 5.2 Summary of the findings using suitable methods This study will find identify critical factors which drive buying decisions of customers and also identify tools for setting online promotion strategies and evaluate the extent of influence of online promotion on customer buying decision. 5.3 Presentation of the findings using suitable methods

Using frequency distribution the result will be presented. Through content and narrative analysis the findings of the research will be further examined. In the academic field the use of content analysis is widely appreciated. By this a researcher can go for a clear idea over the collected information and make a categorical statement. It helps in investigating further as well in searching the inner meaning of the findings. It will also help to relate the data with the study process both practically and theoretically. 5.4 Critical analysis of the findings The growing mindset of the customer about the consciousness, it is important to supply them the adequate information and make them satisfied than the competitor existing in the market. This paper will help to find the features of the awareness building of customer and surge the sales. This paper will help to find out the issue where the entrepreneurs will find the new area to invest and the new policy will initiate by this. This will also give floor to other companies to analysis their online marketing strategy and the way of the marketing expansion. It will also make the possible groundwork for stepping in the international corridor for the business venture. There were some limitations for this research study as the data collection from the principal branch of the company was tough. The less access of the inside information about the company was also a big limitation for the researcher. It can be said that from this study the company will get some core are to function and make an image which will help them to retain the satisfaction from the customer as well the branding acceleration with a marginal profit.

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