Professional Documents
Culture Documents
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Management - Management in the dialog have been and SMS along with the taxes fully and refunded as
endlessly pushing their customers to adopt top-up within a day.
technologies which will help to save up on cost and
successfully allow the customers to develop and
adopt operative methods of business management 1.4 Research aims and objective
and marketing. The aim of this research is to analyse and
Consumer associations - Consumer associations identify the impacts of social media marketing on
have been unconvinced of the use of social media and consumer purchase decision and also how social
online features which have often misguided the users. media marketing help consumer in a purchase
This research will clear the air, on understanding the decision.
benefits, drawbacks, and enablers. Research objectives:
Regulators – It considers the use of social media and
To define the term social media marketing
online purchasing to be indicators of progressive
and consumer purchase behaviour.
economies. As such, this does deliver the regulators
To carry out a literature review on the
with an effective model for the transaction.
subject of consumer purchase behaviour and
1.2 Company background impact of social media.
Dialog Axiata is one of the largest To conduct a primary research with the help
telecommunication providers in Sri Lanka. In terms of questionnaires and interviews on the
of market capitalisation, it is listed as one the largest impact of social media advertising and
company in Colombo Stock Exchange. Similarly, it is consumer purchase behaviour.
also Sri Lanka's largest foreign direct investor with To review the findings and to make
investment totalling above USD 2.1Bn. Dialog, a recommendations to management of Dialog
winner of six GSMA Mobile World Awards has the Axiata.
distinction of being voted by Sri Lankan consumers
as the Telecom Service Provider of the Year for six 1.5 Research problems and questions
successive years and Internet Service Provider of the According to the theme that is chosen where
Year at the SLIM Nielsen People's Choice Awards. the discussion emerges on the impact of social media
The company provides 2.5G and 3/3.5G Mobile as marketing on consumer purchase behaviour. The
well as 4G Communications networks supporting the primary question here is does social media marketing
very latest in multimedia and mobile Internet services impacts on consumer purchase behaviour in the
(Dialog, 2016) current technologically advanced world.
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the recent years, the popularity of social networking information screening, dependability, and product
sites and social media has increased at a global level comparison (Alba et al., 1997). Since the Web gives
(Kucuk and Krishnamurthy, 2007). For example, screened and examination data for options,
Facebook is said to have more than a billion users consumers may likely to reduce the cost of
from the time it began in 2004. Social networks are information on search and the effort in making
increasingly taking up a greater share of consumer purchasing decisions.
time spent online. Users are also using different
online formats to communicate, such as Blogs, 2.1 Cost efficiency
YouTube, Myspace, Instagram and Facebook to Individuals argue that price will also play an
share information about the product or service and even lesser role on the internet, given the opportunity
also to contact the other consumers who are also seen for more nonprice data to be delivered. According to
as a more objective information source (Kozinet, this argument regarding the price, attribute is being
2002). The unique aspect of social media and it so visible and dominant, the option position, with the
immense have revolutionized marketing practices absence of imperative on the amount of information,
such as advertising and promotion (Hanna, Rohm and is that consumer can spend more time going through
Crittenden, 2011). Likewise, Kaplan and haenlein it and evaluating nonprice attribute information
(2010) state that, there are many advantages of using (Lynch and Ariely 2000). Moreover, Brynjolfsson
social media marketing, it helps to connect business and Smith (1999) state that in online purchasing
to consumers, develop relationships, and foster those lower prices are being charged than in traditional
relationship in a timely manner and at a low cost. outlets. Also, wider prices are being charged for the
Social media websites gives an opportunity to the same product than in traditional retailing. They
organisations to connect and interface with potential estimated this may be the consequence of more
and current consumers, which will help to have a differences in non-price attributes and services; thus,
strong customer relationship and also to build all- cost plays a less essential part in the consumer choice
important meaningful relationships with consumers process.
(Mersey, Malthouse and Calder, 2010), particularly Furthermore, when we attempt to deal with
in the present business condition when consumer the different expectations, the part of the cost in the
loyalty can vanish at the smallest mistake, which can digital consumer's choice process is not clear. The
moreover have on the online propagation of their consumer in the digital market will have more
unfortunate encounter with a particular product, information about the products and services and that
service, brand or company. the ease of search is higher: as a result, when
Consumer purchase behaviour consumer making their product choice they will be
fully informed or will be having more opportunity to
Consumers have a tendency to take part in be more fully informed. It is also important that
relational behaviours to accomplish more efficiency research also need to apply for a consumer choosing
in their decision-making, to reduce information across brands. Brynjolfsson and Smith’s (1999)
processing, to achieve more cognitive consistency in research seems to be more specific, which is more
their decisions, and to reduce the perceived risks focused on the role of price when deciding to shop
associated with future choice (Sheth and Parvatiyar, online for a particular product. The hypothesis for
1995). A consumer begins to feel safe with the the following would be:
service provider or supplier when transactions are
done successful (Ravald and Gro¨nroos, 1996). When H1a: Cost-efficient has impact on consumer purchase
consumer trust the company, they realize that this behaviour.
organization can satisfy their requirements and needs 2.2 Information satisfaction
and in the long run, they become committed to the Information satisfaction refers to consumer
company. Consumer online purchase decisions have satisfaction and dis satisfaction with an overall
mainly focused on identifying the factors that affect information that is provided for the goods and
the willingness of consumers to engage in internet services (Crosby and Stephens, 1987). Which implies
shopping. exploring through Web pages and contents in an
In the space of consumer behaviour research online service context. It varies from the overall
here are general models of purchasing behaviour that satisfaction which refers to consumer’s overall
delineate the procedure which consumers use in evaluation of an organization based on all encounters
making a purchase decision. The online shopping and experience with that specific organisation (Jones
environment empowers consumers to reduce their and Suh, 2000). According to the information system
decision-making efforts by giving huge selection, literature, user information satisfaction can be
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affected by information quality and user interface H3a: Consumer trust has an impact on consumer
quality (DeLone and McLean, 1992). Information purchase behaviour.
that is provided by the online store needs to support
the customer service and product. These information
needs to be helpful and relevant in predicting the 2.4Internet shopping experience
quality and utility of a product or service Consumers with greater Internet experience
(Wolfinbarger and Gilly, 2001). In order to satisfy will probably utilize on the web channels to gather
consumer’s information needs, such information item data because the cost of collecting information
needs to be up-to-date when offering products and is less costly than that from offline channels (Cook
service, it should also be sufficient in order to help and Coupey 1998). Consumers who have a greater
the consumer when making a choice, consistent in internet experience is likely to the various perception
representing and formatting the content and also of the attribute of the online channels from that of an
make it easier to understand (Wang and Strong, internet beginner and also the consumer will have a
1996). Therefore, we can say that information higher confidence on the internet (Bart et al. 2005).
satisfaction will have an impact on consumer For an Internet beginner, in contrast, utilizing the
purchase behaviour. online information may evoke perceptions of
The hypothesis for the following would be: uncertainty and complexity. Therefore, Internet
experience may moderate the assessment of online
H2a: Information satisfaction has an impact on information. Hence, consumers with more internet
consumer purchase behaviour. shopping experience will be using the internet as
their primary information source and also more likely
to have a greater confidence on the internet.
2.3 Consumer Trust Furthermore, they are also more likely influenced by
Some authors are in progress to examine the the online reviews. Therefore, we can say that
influence of consumer trust in online marketing, due internet shopping experience will have an impact on
to the lack of trust among online consumers, it is consumer purchase behaviour.
considered as the main explanation for low electronic The hypothesis for the following would be:
commerce rates. When a consumer does a transaction
with an online web store that is portrayed to be H4a: Internet shopping experience has an impact on
operating in an uncertain environment (Fung and consumer purchase behaviour.
Lee, 1999) like the internet, Consumer is less
prospective to assume that everything about their
transaction is guaranteed and usual as associated to
their transactions with an offline store. It clearly 3.0 Methodology
shows that the consumers have no any physical 3.1 Introduction to research methodology
interaction with the seller in online transactions. Due Research is defined as a systematic and
to this, it is unable to evaluate effectively the scientific which helps in data collection compilation,
products which are on offer or to check the identity analysis, interpretation, and implication pertaining to
of the seller. Moreover, it is also possible that any business problems. Likewise, Research
conceivable that the item received is not the one that methodology is the systematic, theoretical analysis of
was ordered. In addition, the increasing problem with the techniques which is also applied in the field of
spam, the continuous periodic reports on hacker study. In addition, the methodology also involves a
attacks and viruses and the existence of a legal method of describing, explaining and forecasting
framework that is incomplete, heterogeneous and phenomena which will help to solve the upcoming
ineffective (Koufaris and Hampton-Sousa, 2002). In and current problems. By doing this research it does
fact, online shopping is seen as being more dangerous not provide solutions for the problems but it does
operations (Taylor Nelson Sofres Interactive, 2002) offer a theoretical foundation for understanding
also developing trust by using the internet is more which method of procedure, set of procedure which
difficult than in traditional channels (Bitting and can be applied to a specific case. Research
Ghorbani, 2004). Therefore, we can say that methodology also contains concepts such as research
consumer trust will have an impact on consumer designs, target population, sample size and sampling
purchase behaviour. procedure, data collection instruments and data
analysis procedure (Kothari, 2014).
The hypothesis for the following would be:
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author has used cross sectional method in order to out. Then a deep discussion will be analysed on the
conduct the research further, whereas the research data collection on the research. A hypothesis test is
will be completed within a year in a broader topic. set about as part of study.
Time period to complete the research is within a year
therefore, the cross-sectional method will help the In order to measure the reliability in this
author to accomplish the objectives of the research research Cronbach Alpha test has been used. By
and complete the research within the specific using Cronbach alpha, it dominant measures of how
deadline that is given. Cross sectional is less costly to reliable the data is within the statistic test. A
perform and does not require more time in pursuing. construct or variable is reliable if the Cronbach Alpha
Furthermore, in cross sectional method multiple is more than 0.6 (Bryman and Bell, 2007). The
variables can be used at the same time. Cronbach’s Alpha in this research is .961 which is
greater than 0.6, therefore this shows that these
Likewise, in this research project all kind of variables are reliable for the research work.
data collection method is used in order to gather Reliability Statistics
information and data. The main data sources result
from the primary and secondary research. As a Cronbach's Alpha N of Items
primary research for this project will be carried by
.961 4
using questionnaire, interviews, and sampling.
Moreover, as secondary research data and
information will be collected from internet, books, Pearson correlation indicates the relationship
journal articles, and observation. The research results between two variables. It shows the quality of
will be taken based on 384 questionnaires and 05 connections and the heading of the relationship that
interviews will be taken as the primary data will be taken. This shows that summary of the
collection. Balakrishnan, Dahnil and Yi, (2014) correlation of both dependent and independent
justifies that observation and secondary data methods variable. As the independent variable of cost efficient
can also be used to gather the information through is 0.868 which is similar to the result of Lynch and
secondary data and then to analyse the results gained. Ariely (2000), information satisfaction 0.841 868
Interviews also can be used as it is a clear way of which is similar to the result of Crosby and Stephens
communicating between two parties. Taher et al (1987), consumer trust is 0.878 which is similar to
(2015) also states that they have used sampling and the result of Bitting and Ghorbani (2004) and internet
structured questionnaire in order to get the feedback shopping experience 0.875 which is similar to the
from the respondents, therefore, it is justified that result of Bart et al. (2005).
sampling and questionnaires can also be used in this
research. Questionnaire for this research needs to
done using the Google form software and distributed
among Colombo. The secondary data is time saving Variables Pearson
and helps to make the primary research data correlation
collection more specific with the help of data Depen_Consumer_purchase_behaviour 0.868
gathered from the secondary data. Through, certified
sampling method it is chosen that BMS as the and Indep_cost_efficient
population, and 384 as the sample size through Depen_Consumer_purchase_behaviour 0.841
analysing Morgan table. and Indep_Information_satisfaction
4.0 Finding and analysis Depen_Consumer_purchase_behaviour 0.878
Findings and analysis provides a and Indep_consumer_trust
comprehensive analysis from the data gathered. A Depen_Consumer_purchase_behaviour 0.875
total of 184 questionnaire responses has been
gathered for this research by using google forms. and
Also, IBM statistical package for social science Indep_internet_shopping_experience
(SPSS) has been used to comprehensive analyses the
data that has been gathered. The analysis that is done
for the comprehensive outlook is divided into
separate segments. Firstly, the author will evaluate on
the sample profile, validity, reliability analysis by
using Cronbach alpha statistic, test for normality,
linearity, correlation and regression will be carried
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The equation of the regression is: Recommendation - Dodds et al. (1991) states that
consumer’s perception of value characterises a trade-
Y= mx + C off between the quality and the benefits that they will
receive from the product relative to sacrifice they will
Y = mx1 + mx2 + mx3 +mx4+ C perceive in the paying the price for the good.
Y (Consumer purchase behaviour) = m (cost Likewise, the market perceived quality is adjusted by
efficient) + m (information satisfaction) + m the companies for relative product price (Gale, 1994).
(consumer trust) + m (internet shopping experience) Therefore, Dialog has to provide the goods at the
+ c(-.74) affordable rate that consumer can purchase and also,
they have to check the competitors price and come up
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with a pricing strategy in order for the consumer to ``Interactive home shopping: consumer, retailer, and
purchase their product at affordable rate. manufacturer incentives to participate in
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no impact of consumer purchase behaviour on online and Brand Loyalty among Generation. Procedia
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