Internet marketing with the use of consumers: A study of the
effectiveness of various techniques and tools in the following areas
Abstract:
This research is being conducted to see how various internet marketing tools
such as email advertising, chat support, and word of mouth (WOM) influence
purchasing decisions and consumer brand perception. The aim of this research was
to examine the relationship between the various online marketing techniques and
tools outlined above and their impact on consumer purchasing decisions and brand
perception. There are other factors that influence this, but the most important ones
that play a major role in changing consumer perception of a brand and making
purchasing decisions are WOM and the relationship of these three variables. My
results show that residents of Novosibirsk who are active on the Internet prefer
WOM to two other variables. Various companies use WOM's online marketing
strategy to reach leads and influence their brand perception and purchasing
decisions. In Novosibirsk, there are no specific factors influencing the
development of brand perception and consumer purchasing decisions. WOM is
produced by consumers and is one of the cheapest online marketing tools used by
businesses and proven to be effective.
Key Words: Relationship marketing, referral marketing, online marketing, Word
of mouth.
Introduction
In this modern era, traditional marketing is disappearing with the penetration
of online marketing, which has spread to a large number of different industries,
including blogs, social media, forums and troubleshooting chats. Now, the pace of
information exchange is faster than ever, and online marketing must play a role to
help this huge amount of new and changing information. Online marketing
provides consumers with the opportunity to sell products that they deem worthy of
a purchase, along with in-depth discussion of the durability, functionality, quality,
performance, and design of various products across a variety of industries.
Marketing managers are increasingly embracing online marketing for a variety of
reasons, including: ease of access, consolidation of large amounts of information
into a compact website, high customization margins and intensity of reaching out
to actual and potential consumers around the gloves, and eliminating geographic
restrictions. Internet marketing can change the perception of a brand of different
products, decisions and influence consumer purchasing decisions from different
industries. The aim of this study is to explore the various methods and tools used
by marketing managers to influence consumer buying decisions and brand
perceptions, using consumers as their marketing asset.
Formulation of the problem
Using various methods and tools to research the impact of internet marketing
on consumers in different industries.
Hypothesis
H1: How word of mouth marketing affects consumer perceptions and purchasing
decisions across industries.
H2: Impact of email advertising via consumers on consumer buying decisions and
brand perception across industries.
H3: Impact of the online chat section on consumer buying decisions and brand
perception across industries.
Definitions
1. Purchase decision: A purchase decision is the final decision that the
consumer ponders after considering all factors such as product quality,
individual income, company brand equity, etc., in order to pay for the
purchased product to make the purchase final.
2. Brand perception: this is a set of characteristics with which a potential
consumer combines a certain product, company, brand to create associations.
The perception of a particular brand can be influenced by factors such as
social campaigns, the marketing of that particular brand, consumer
satisfaction / dissatisfaction with that brand after consuming that brand, and
the oral opinion generated by that brand.
Literature review
At this time, customers not only buy products, but also sell them. They share
elements such as reliability, warranty procedures, product quality, prices, ease of
use orally, via social media and online forums. This study aims to examine the
factors that influence consumers' ability to sell products online and then focus on
and develop the most productive marketing measures that will help marketers
across industries develop new methods and tools to harness the marketing potential
of consumers. As Chaffee (1986) observed, the more interaction between people in
the media, the more likely they are to spread information, which will of course lead
to change of opinion and social change. This shows that direct agents are much
more efficient than indirect ones, in this case the consumers themselves.
Rewarding consumers for participating in the marketing process increases the level
of confidence in the message delivered. In addition, marketing that is consumeroriented can be sufficiently influenced by the way consumers approach it, which is
affected by media integrity (Huh, Delorme and Reid, 2004). In addition, there are
ethical concerns in the pharmaceutical industry when using consumers as
advertising agents, as wrong actions can lead to devastating results.
For example, Merck's reckless approach to Vioxx harmed a large number of
patients and resulted in huge economic losses (Mercola, 2005). Apple Newton, a
product that was discontinued more than 9 years ago, has the potential to reappear
as consumers of that particular product seek to use vigilante marketing as a tool to
modify, repair and update that product. How we view the Newton brand population
as “homebrew advertising” (Kahney, 2004), “folk advertising” (O'Guinn, 2003),
open source branding (which is known by many names including distributing
customer advocacy with beautiful dovetail Garfil, 2005) and "vigilante marketing"
(Ives, 2004). Online chat has proven to be a strong center of promotion and
marketing in this century. According to Teenage Research Unlimited, 81% of
young people use the Internet and chatting is their number one activity (Brown
1999; Porterfield 1999). The study of this area is still in development, but the
prospects look productive, since so many young minds in one place have a lot of
information to disseminate it, including their experience of using various products.
Creating value for the consumer means not only satisfying his needs with the help
of a product that is produced at the enterprise, but also supported by many ethical
principles, values and norms. Rather, it also means engaging customers to share
their product experiences versus competitors' product experiences, and then
posting that information online on social blogs or relevant forums to enable
businesses to have a big advantage. (Grace Tyng-Ruu Lin and Jerry Lin, 2006).
According to David Godes and Dina Mayzlin (Fall, 2004), the survival of a loosely
controlled pool of obvious interactions is unmatched. This study establishes that
there is evidence of these interactions and that they can be extracted at the lowest
cost.
The disparity relationship between quantity plus distribution and sales
should be examined. Also, assuming there is a relationship, the problem of
dispersion is motivating. In addition, he also stated that more research is needed to
create a more acceptable root for calculating the distribution. Another major issue
in this regard is the relationship between online and offline word of mouth. This
study examined the effectiveness of online communities in correcting the
fundamental development of offline sales. This means: a) people come to offline
judgments after processing online data, or b) online interactions can trigger offline
interactions. Consumers are willing to participate in the exchange of information
on the Internet without realizing the fact that organizations can process this
information simultaneously and make different interpretations of them. But this is
not the case with traditional market research where people consent to this use of
their information. According to Alan L. Montgomery Interfaces (March - April
2001) For a dynamic environment such as the Internet, it is normal to create new
means of communication interfaces and new applications to help create an online
language. For example, the Icono cast (December 16, 1998) pointed out that viral
marketing is a new language in online marketing. However, in connection with
viral marketing, some new names are being coined, which may lead others to
misunderstand it. Collective filtering encourages people to enjoy parallel comforts
using grouping techniques. Such techniques help in website hijacking. Ungar and
Foster [1998] mention a collective filtering technique used by CD Now to suggest
new and upcoming artists to their clients via their email addresses. [Chavez and
Maes, 1996] mentioned that the creation of online bazaars for buying and selling
goods can be carried out by computer agents. Pazgal [1999] notes that these agents
greatly influence the effectiveness of online marketing. Robert V. Kozinets,
Kristine de Valck, Andrea C. Wojnicki and Sarah J.S. Wilner (2010) also added:
“We looked at the review methods at Amazon.com and bn.com and found that
customer ratings are generally constructive on both sites, and that they are more
comprehensive on Amazon.com. This confirmation demonstrates that customer
support is affecting the purchasing performance of the two online retail sites. The
perception that customer content affects sales is imperative for differences in the
value of customer content to have any impact on differences in revenue or
profitability for retailers. An interesting addition to this paper could be a careful
study of whether improving customer satisfaction with their purchases affects
subsequent customer loyalty. ” This article by Chrysanthos Dellarocas (October
2003) examines and explains the relationship between feedback mechanisms on
the Internet and their ability to become major information exchange places where
consumers share their views on various products. The impact of online marketing
with consumer interests is largely subtle, but significantly influences decisionmaking patterns and consumer behavior in various industries. There is evidence to
suggest that consumers are now relying heavily on views and opinions on the
Internet, from how to invest to deciding where to relax (Guernsay, 2000). Internet
marketing is facing a new problem in the modern era, namely the ignorance of
people who publish or exchange information online with those who view and / or
access it. Whereas everyone is free to post, share and comment on their opinions
and views regarding various products on the Internet without any careful input of
personal information; it creates a fragile online identity similar to someone else's.
Perhaps This will lead to problems with trust among the target audience, thereby
affecting the impact of shared information. (Friedman and Resnick, 2001).
Dellarocas (2003), discusses that unfamiliar identities can lead to optimal results if
the nature of the communication is objective rather than subjective. An objective
exchange and exchange of information can lead to a better understanding of the
context than subjective information, since there is less variation and distortion in
objective data compared to subjective data. It is also important to note that the
nature of the product or service will also affect the effectiveness of the information
transmitted. Market growth rates are an important indicator of market potential.
(Gatignon, Weitz and Bansal, 1990). Strongly growing markets usually have more
profit potential than markets, stagnant markets, or markets that are in decline.
However, a high growth rate does not necessarily indicate high profit potential
(Aaker and Day 1985). This is because companies may seek to penetrate the
market while maintaining low profit margins. Consequently, companies can
maintain high profit margins but still have high growth rates simply because the
market has such potential.
Competition eats up the profits of existing firms in most cases, since the
larger the total number of players, the less money to play. It also means that highly
concentrated firms, in most cases, create strong barriers to entry to protect their
profits. (Scherer and Ross 1990). While this anti-competitive nature of firms can
harm consumers in the long run, in the short run it proves to be very beneficial for
firms. Another approach related to markets is product standardization. In markets
where product standardization is high, consumers are encouraged to make simple
product comparisons. Thus, the market for such products is highly competitive,
and price wars are a common feature of such a market unless the collusion has
already been resolved. This creates a special need for companies to diversify their
products through effective marketing, since the products themselves are more or
less the same (Kotler 1991).
Research Methods
Data collection method
The data used in this study are primary data collected from respondents.
Personal interviews were conducted.
Sampling technique
The sampling technique and procedure are unlimited, not probabilistic.
Sample size
75 respondents from different districts of Novosibirsk, including shopping
centers and offices. Data collection questions based on closed-ended questions,
multiple choice, and Likert scale.
Statistical method
One T-test sample used to compare hypothesis addiction.
Results
Conclusions and interpretation of results to analyze and compare different
tools and techniques in different industries of internet marketing through
consumers. For this I used a single T-test.
Table 1
In a time era, do you think
having a brand on social media is
important for its growth?
Strongly Agree Chat Section
World
Of
Mouth
Email
Advertising
Agree
Chat Section
World
Of
Mouth
Email
Advertising
Neutral
Chat Section
World
Of
Mouth
Email
Advertising
N
30
Mean
2.2667
Std. Deviation
.69149
Std. Error
Mean
.12625
30
4.4000
.81368
.14856
30
32
2.1000
2.3438
.75886
.82733
.13855
.14625
32
4.2813
.81258
.14364
32
13
1.9063
2.3846
.64053
.86972
.11323
.24122
13
4.1538
.89872
.24926
13
1.9231
.75955
.21066
Data were analyzed using a single-sample test with a test score of 4, where 1
strongly disagree, 2 disagree, 3 neutral, and 4 agree. The analysis identified three
main online marketing tools; word of mouth, chat section and email advertising.
Throughout the collection, the result was unanimous and consistent. All of those
surveyed agree that word of mouth is the most effective in the industry, while
email and chat are not. In support of this statement, the average word rate in the
three categories matches the test value, that is, 4 or more than 4, with respondents
agreeing with the word of mouth. In contrast, the average for the chat and email
section is less than three across the three categories, indicating respondent
disagreement. Thus, word of mouth (two-way) value can be significant or
negligible. If it is significant, then a positive difference in the mean values
confirms the result. On the other hand, the (two-sided) values for the email and
chat section are significant, with a negative average difference, indicating
disagreement as a result.
Table 2: Hypothesis assessment summary
Hypothesis
How word of mouth marketing affects consumer
perceptions and purchasing decisions across industries.
Impact of email advertising via consumers on
consumer buying decisions and brand perception
across industries.
Impact of the online chat section on consumer buying
decisions and brand perception across industries.
Representation Result
H1
Accepted
H2
Rejected
H3
Rejected
Conclusion
As a result of the study of a sample of 75 respondents, I came to the conclusion
that there is no direct relationship between the studied variables (Internet
marketing through consumers, brand perception and purchase decision).
Consumers either strongly agree or agree that having a brand on social media has
strong implications for growth. Almost every manager agrees that word of mouth
marketing has a greater effect than chat or email advertising. Consumers choose
word of mouth as their primary online marketing tool. The conclusion to the article
also confirms the findings of Sheth (1971). Word of mouth is a vital tool, rather
than advice, in fostering awareness of innovation and in deciding to try a product,
he said. The Word of mouth is a better marketing tool than any other, as personal
sources are considered more reliable (Murray, 1991).
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