IMPACT OF DIGITAL MARKETING ON

CONSUMER BUYING BEHAVIOR

QTMS FINAL PROJECT

SUBMIT TO: SIR ARSALAN HASHMI

MADE BY:
SAEEDA RIJA (63682)
HUMAIS SIDDIQUI (63695)
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HABIBA FAISAL (63161)
KASHAN AHMED (63777)
 ACKNOWLEDGEMENT

We would like to express our deepest appreciation to our respected sir who provided us the
possibility to complete this report.  A special gratitude we give to our final project manager, SIR
ARSALAN HASHMI, whose contribution in stimulating suggestions and encouragement,
helped us to coordinate our project of QTMS especially in writing this report. This project report
brings together the hard work of entire group members under one cover. This report helped us in
doing gaining knowledge regarding the ongoing marketing trends prevailing in the market.

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Table of Contents
Abstract.......................................................................................................................................................4
1.0. Introduction:....................................................................................................................................4
1.1. Research Problem:...........................................................................................................................7
1.2. Research Question:..........................................................................................................................7
1.3. Research Objective:.........................................................................................................................8
1.4. Hypothesis:......................................................................................................................................8
1.5. Conceptual Framework:...................................................................................................................9
2.0. Literature Review:.........................................................................................................................10
2.1. Consumer Purchase Behavior:...................................................................................................11
2.2. Website Aesthetic:.....................................................................................................................12
2.3. Communication:........................................................................................................................13
2.4. Internet Shopping:.....................................................................................................................14
2.5. Cost Efficient:............................................................................................................................15
2.6. Consumer Trust:........................................................................................................................16
2.7. Information Satisfaction:...........................................................................................................17
2.8. Methodology:.........................................................................................................................18
3.0. Result and Discussion:...........................................................................................................19
3.1. Summary Statistics:...............................................................................................................19
3.2. Correlation:............................................................................................................................21
3.3. Regression Analysis:..............................................................................................................22
3.4. Shapiro-Wilk Test:.................................................................................................................24
4.0. Conclusion:............................................................................................................................25

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 Impact of digital Marketing on Consumer Purchase Behavior
Abstract

Digital Marketing is connceted with internet. It conncets the consumer to seller on platform

which is given by internet. As we seen from the past now a days consumer getting more attention

from digital marketing. It conncet consumer and seller with many types of search engine

marketing. This platform do not directly sell any product it sell by the help of these tupes of

engine and customer use it to make any decession. In this research paper we study that how

digital marketing influence consumer purchase behavior. This is an descriptive study. The

sample size of this study is 377 respondents that are selected on their judgment of sampling. The

data we collected with the help of open and structured questionnaire.

Keywords: Consumer purchase behaviour, website aesthetic, communication, internet shopping,

cost efficient, consumer trust and information satisfaction.

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1.0. Introduction:

Nowadays, online marketing or digitalization became an important part of everyone’s life either

buyer or seller. This social media trend has transformed consumer purchase behavior a lot with

high expectations from shops or brands. In the era of technological advancement, which provide

an easy access to customers to their wanted products, people are mostly spending their time on

social media on Facebook, Instagram etc. and from there; they do their further access to buy

products online. It is clear that every brand should know the utilization of every digital and social

media channels to display their products online and to gain customers attention. [ CITATION Hei \l

1033 ].

The major benefit which every large business or company gets from digital marketing is that

they are able to reach their potential and loyal customers all around the world. Social media

display and communications throws a very important impact on consumer’s decision making

regarding purchase of any product. Internet or social media has a very strong influence on

consumer’s buying behavior. Customer visits websites of the related product they require. There

they explore every available information and they go through the reviews and comments of other

customers as well to make up the final decision of buying[ CITATION Sha \l 1033 ].

Although companies have switched over to social media to promote their business and for online

buying and selling, but they also face some major challenged such as they do not know how to

effectively use the available opportunities on social media to capture large number of customers.

This paper will discover that features like how product information on social media and prices

plays an important role in making customers decision to buy the product. While working on

social media marketing, here word of mouth also plays a very important role in making
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consumer’s mind to buy the product. When customer does not find any related information

regarding the product on internet, then they go towards word of mouth and look forward to other

people’s opinion [ CITATION Sha \l 1033 ].

As social media has given the platform to strengthen their positions in the market, similarly, the

expectations of customers also gone higher related to every product. Therefore, it is an excellent

opportunity for the businesses to capture large number of customers. Social media connects

customers with business directly[ CITATION Sha \l 1033 ].

The online shopping tends to decrease the struggle of customer regarding the search of product

by providing huge selection options, detailed information, pictures, product comparison etc.

Since websites provide such information easily to customers, it reduce their struggle about know-

how of product and have provided much easiness that one can find any information by sitting at

their home which is cost saving as well[ CITATION Nas \l 1033 ].

In order to attract customer, its responsibility of all the brands and businesses to display their

belongings properly on internet and to treat customers in a very good manner to make their

shopping experience a good one due to which they can rely more on social media purchasing.

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 1.1. Research Problem:

In this study we discuss the impact of digital marketing on consumer purchase behavior. The

important question is that how this behavior is growing in modern world:

 What is the advantage of using digital marketing for companies to showing their

products?

 Is using digital marketing is efficient and efficient?

 Is it beneficial for consumers to purchase online and how it impacts on their behavior?

1.2. Research Question:

Following are the research question our study:

I. What is the effects of website aesthetic on consumer purchase behavior?

II. What is the effect of communication on consumer purchase behavior?

III. What is the effect of internet shopping on consumer purchase behavior?

IV. What is the effect of cost efficient on consumer purchase behavior?

V. What is the effect of consumer trust on consumer purchase behavior?

VI. What is the effect of information satisfaction on consumer purchase behavior?

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 1.3. Research Objective:
Following are the research objectives our study:

I. To ascertain the impact of website aesthetic on consumer purchase behavior.

II. To ascertain the impact of communication on consumer purchase behavior.

III. To ascertain the impact of internet shopping on consumer purchase behavior.

IV. To ascertain the impact of cost efficient on consumer purchase behavior.

V. To ascertain the impact of consumer trust on consumer purchase behavior.

VI. To ascertain the impact of information satisfaction on consumer purchase behavior.

1.4. Hypothesis:

Following are the hypothesis our study:

H1: Website aesthetic has a positive impact on consumer purchase behavior.

H2: Communication has a positive impact on consumer purchase behavior.

H3: Internet shopping has a positive impact on consumer purchase behavior.

H4: Cost efficient has a positive impact on consumer purchase behavior.

H5: Consumer trust has a positive impact on consumer purchase behavior.

H6: Information satisfaction has a positive impact on consumer purchase behavior.

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1.5. Conceptual Framework:

Website asthetic

Communication

Internet shopping

Consumer purchase behaviour

Cost efficient

Consumer trust

Information
satisfaction

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2.0. Literature Review:

Talking about today’s world there are various modes in providing goods and services. Social

media marketing also known as digital media marketing play a very important role in today’s

world to build better customer relation. There is multiple website such as Facebook, Instagram,

twitter, YouTube and Myspace where customer can get relevant information about the product

and can purchase from it with multiple discount and variety. [ CITATION Koz92 \l 1033 ]. Since

social networking is touching the skies and is been used on regular basis people are spending

their time purchasing online rather than purchasing from psychical shops. However, technology

is advancing from every corner likewise marketing practices are also being enhanced such as

promotion and advertising. [ CITATION Han \l 1033 ] . Apart from purchasing there are many

benefits of using social media it assists in linking companies with customers, building

partnerships, and looking after those bonds in a cost-effective way. Organizations may use

different websites to communicate and interact with their new and existing customers, resulting

in a stronger client connection and the development of all-important positive interactions with

their customers. [ CITATION Mer10 \l 1033 ] . Especially if I talk about today's market environment,

where customer trust can be shattered by the slightest mistake, which result in spreading those

online reviews of their bad experience with a specific product, service, brand, or organization.

Following are the variables which about having an impact on consumer behavior through digital

marketing.

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 2.1. Consumer Purchase Behavior:

Consumer purchase behavior is a very important aspect in the medium of social media marketing

it assists advertisers in getting a greater understanding of the variables that affect customers'

purchase decisions. Through this marketer can fill the void in the market and help them identify

about what is lacking or what is needed. Consumers are more likely to engage in relational

behavior in order to improve decision-making performance, minimize information collection,

gain greater stability in their judgments, and lower potential risks linked with possible choices.

[ CITATION Rav961 \l 1033 ]. When customer they have faith and trust in their brands which will

make them sure that they are going to fulfill all their customer need and desires in order to

maintain a longer relation. There are different models of purchasing behavior which outlines the

process and somehow help the customer to make a decision. There are so many benefits for

purchasing online as it displays multiple things such as dependability, huge selection, giving

relevant information and comparison of various products. [ CITATION Alb97 \l 1033 ]. As the

internet gives all the relevant information to its customer about the product customers are abler

to save their time on searching for information and start focusing on the buying decision.

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 2.2. Website Aesthetic:

In past researches it is found that people are attracted more towards the physical appearance of

the shops or stores they somehow feels influenced by the aesthetics and are more eager to

purchase things. [ CITATION Bab \l 1033 ]. The aesthetics and atmospheres of online shops are

often influenced by studies in the field of human computer interaction. However, the study has

find out that the three are different websites aesthetics and decorum from which customer get

motivation influenced. Online presence the ways to maintain your customer plays an important

role.

One of the main issue which researchers have highlighted is that making a successful online

presence and fulfilling your customers demand according to that.[ CITATION Ero \l 1033 ].It is a

fact that website aesthetics has been an important issue. Research in this area has resulted in

dispersed and scattered information. [ CITATION Tra07 \l 1033 ] . Aesthetics, Usability, Marketing

mix, Interactivity, and Trust are the five important website experience component that make up

an online user's experience with a website and make customer decide about their experience.

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 2.3. Communication:

From the prior studies researches has said that the main aim of this research is to look into the

efficiency and effectiveness of online digital communication as a main mode of marketing.

Since, its 21st century and everything has been digitalized but according to researches it is

mentioned that consumers somehow get limited with the marketers because there were no

different modes of communication or expressing previously. Consumers are now involved in

different marketing practices such as control, implementation, planning and analysis. [ CITATION

Yaz16 \l 1033 ]. There are different digital tools which help a marketer to stay connected with its

customer throughout the process whether it’s the promotion deal or making customer select the

and finalizing the product. Because, customer is the one who is always stays connected even

after the purchase in order to guide us what we need to modify and what not. This research

explores the general influence of new media networking platforms in urban environments and

found them to be more productive than conventional media outlets.

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 2.4. Internet Shopping:

In today’s world online shopping has been the most convenient thing in this crucial time. Since,

everyone is busy and having crucial time so it somehow giving is benefit to purchase online.

Rather than buying from physical store people want thing to be at their door step. Using online

content, on the other hand, can elicit feelings of confusion and sophistication in an Internet

novice. As a consequence, previous Internet knowledge can affect how online information is

evaluated. [ CITATION She95 \l 1033 ]. Since online shopping has become an important element and

part of everybody’s lives and the usage is on daily basis, e-commerce store optimization has

become an important to deliver what customer want. Good experiences may result in increased

sales, whereas unfavorable experiences may result in irreversible consumer loss. As a result, it is

concluded that online shopping experience can have impact on customer purchasing behavior.

[ CITATION Rav96 \l 1033 ].

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 2.5. Cost Efficient:
Regarding the price attribute is being so visible and dominant as consumer can spend more time

going through it, and evaluating non price attribute information in online purchasing lower prices

are being charged dentists traditional outlets also wider prices are being charged for the sum

product than in traditional retailing, the consumer in the digital market will have more

information about the products and services, and that ease of search is higher as a result when

consumers are making their choice, they will be fully informed. (Lynch)

The shopper within the advanced advertise will have more data around the products and

administrations which the ease of look is higher: as a result, when shopper making their item

choice they will be completely educated or will be having more opportunity to be more

completely educated. It is additionally imperative that inquire about moreover got to apply for a

customer choosing over brands. (Brynjolfsson) inquire about appears to be more particular,

which is more centered on the part of cost when choosing to shop online for a specific item.

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 2.6. Consumer Trust:

Trust his governance mechanism in relationships, concerning exchanges. It is characterized by

uncertainty vulnerability or dependence. Despite impressive improvements in online shopping

difficulty remains in making the user how to click purchase securities issue is one barrier in

regards to the potential internet shopping for the consumers. Consumer not trusting the

environment will be expected to exhibit the same attitude, also to online shopping. Website

designs attracts the attention of consumers as well as affecting the trust. Repetition in online

retailing has often been used as an indicator of consumer trust in company. Fear of online fraud

is just one of the reasons for avoidance of most customers with respect to bringing shopping in

the digital environment to their minds.

It clearly appears that the buyers have no any physical interaction with the vender in online

exchanges. Due to this, it is incapable to assess successfully the items which are on offer or to

check the character of the seller. In addition, it is additionally possible that conceivable that the

thing gotten isn't the one that was requested. In expansion, the expanding issue with spam, the

nonstop occasional reports on hacker attacks and infections and the presence of a lawful system

that's deficient, heterogeneous and incapable (Koufaris). In truth, online shopping is seen as

being more unsafe operations (Interactive, 2002) too creating believe by utilizing the internet is

more troublesome than in conventional channels. Hence, we are able say that customer believe

will have an effect on shopper buy conduct.

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 2.7. Information Satisfaction:

Information satisfaction refers to consumer satisfaction and dissatisfaction with an overall

information that is provided for the goods and services. According to the information system

literature user information satisfaction can be affected by information quality information that is

provided by online store needs to support the customer service and product. These information

needs to be helpful and relevant in predicting the quality and utility of a product or service.

It varies from the overall satisfaction which refers to consumer’s overall evaluation of an

organization based on all encounters and experience with that specific organization [ CITATION

Jon \l 1033 ]. According to the information system literature, user information satisfaction can be

affected by information quality and user interface quality [ CITATION DeL \l 1033 ].

In arrange to fulfill consumer’s data needs, such data must be up-to-date when advertising items

and benefit, it ought to also be adequate in arrange to assist the shopper when making a choice,

steady in speaking to and designing the substance additionally make it less demanding to get it

[ CITATION Wan \l 1033 ] . Subsequently, able to say that data fulfillment will have an effect on

shopper buy conduct.

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 2.8. Methodology:

This research is a survey. The data collected and involved in this research is primary data.

Questionnaire was designed and data is collected by reviewing responses. Questionnaire includes

questions regarding every variable. Convenience sampling has been used and the targeted people

sample people include students, employees, housewives or old age people as well. Sample size is

100. The research philosophy is based on positivism as it describes how independent variables

positively affect consumer-buying intentions. Time horizon will be cross sectional as it is a brief

research of less than 1 year. The research approach is deductive.

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3.0. Result and Discussion:

3.1. Summary Statistics:

5
4
Avg CPB
3 2
1

1 2 3 4 5

Avg CPB Avg CPB

Avg CPB Avg CPB
Avg CPB Avg CPB

SUMMARY STATISTICS INTERPRETATION:

AVG CONSUMER PURCHASE BEHAVIOR:
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The mean statistics of CPB is 1.984891 following with the standard deviation of 0.79% with
minimum value of 1 and maximum value of 5.
AVG WEBSITE AESTHETIC:
The mean statistics of WB is 2.266522 following with the standard deviation of 0.91% with
minimum value of 1 and maximum value of 5.
AVG COMMUNICATION:
The mean statistics of CM is 2.2775 following with the standard deviation of 0.89% with
minimum value of 1 and maximum value of 5.
AVG INTERNET SHOPPING:
The mean statistics of IS is 2.130109 following with the standard deviation of 0.94% with
minimum value of 1 and maximum value of 5.
AVG COST EFFICIENCY:
The mean statistics of CE is 2.650145 following with the standard deviation of 0.72% with
minimum value of 1.33 and maximum value of 4.
AVG CONSUMER TRSUT:
The mean statistics of CT is 2.61 following with the standard deviation of 0.89% with minimum
value of 1 and maximum value of 4.67.
AVG INFORMATION SATISFACTION:
The mean statistics of IMS is 2.367862 following with the standard deviation of 0.96% with
minimum value of 1 and maximum value of 5.

3.2. Correlation:

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. correlate avgcpb avgwa avgcm avgis avgce avgct avgims
(obs=276)

avgcpb avgwa avgcm avgis avgce avgct avgims

avgcpb 1.0000
avgwa 0.5842 1.0000
avgcm 0.4116 0.6277 1.0000
avgis 0.5099 0.3012 0.3706 1.0000
avgce 0.1065 0.1315 0.3020 0.0950 1.0000
avgct 0.4945 0.4258 0.5515 0.3714 0.2912 1.0000
avgims 0.5523 0.5621 0.6346 0.4588 0.1658 0.7380 1.0000

This analyses shows the interconnections between the variables Correlation of CPB, IMS and

WA has shown the highest value which means they have strong connection with each other and

CT and IS has the second highest value which means they are also connected strongly CM and

CE has the lowest value which shows the least connected variables.

3.3. Regression Analysis:

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. regress avgcpb avgwa avgcm avgis avgce avgct avgims

Source SS df MS Number of obs = 276

F( 6, 269) = 47.06
Model 88.2635546 6 14.7105924 Prob > F = 0.0000
Residual 84.0905389 269 .312604234 R-squared = 0.5121
Adj R-squared = 0.5012
Total 172.354094 275 .626742158 Root MSE = .55911

avgcpb Coef. Std. Err. t P>|t| [95% Conf. Interval]

avgwa .3828493 .0493138 7.76 0.000 .2857591 .4799394

avgcm -.1449815 .0564601 -2.57 0.011 -.2561415 -.0338216
avgis .2591613 .0404628 6.40 0.000 .1794972 .3388255
avgce -.00888 .0500768 -0.18 0.859 -.1074723 .0897123
avgct .1682855 .0579321 2.90 0.004 .0542276 .2823434
avgims .1036766 .0608386 1.70 0.090 -.0161038 .2234569
_cons .234125 .1548819 1.51 0.132 -.0708099 .5390599

INTERPRETATION:
CONSTANT:
The estimated value of constant is 0.234125. This value implies that when value of all
independent variables tend to increase by 1% , the consumer purchasing value will also increase
by 0.234125. This relation is positive and it does makes logical sense.
SLOPE COEFFICIENT X2 WEBSITE AESTHETICS:
The estimated value of slope coefficient is 0.3828493. This value implies that when effect of
website aesthetic will increase by 1%, the consumer purchasing will also increase by 0.3828493.
The positive relation between these two variables makes logical sense as when website quality
increases, consumer will more attract towards online shopping.
SLOPE COEFFICIENT X3 COMMUNICATION:
The estimated value of slope coefficient is -0.1449815. This value implies that when effect of
communication will increase by 1%, the consumer purchase behavior will tend to decrease by
-0.1449815. There is a negative relation between both the variables and it does not make any
logical sense as good communication cannot lead to decrease in consumer purchasing.

SLOPE COEFFICIENT X3 INTERNET SHOPPING:

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The estimated value of slope coefficient is 0.2591613. This value implies that when amount of
internet shopping increases by 1%, the consumer purchasing will also increase by 0.2591613.
There is a positive relation between these two variables and it does makes logical sense as when
internet shopping experience is good, consumer tends to purchase more online.
SLOPE COEFFICIENT X4 COST EFFICIENT:
The estimated value of slope coefficient is -0.00888. This value implies that when cost efficiency
increases by 1%, the consumer purchasing will tend to decrease by 0.00888. There is a negative
relation between these two variables and it does not make logical sense as the more the product
is cost efficient, consumer will more likely to purchase it.
SLOPE COEFFICIENT X5 CONSUMER TRUST:
The estimated value of slope coefficient is 0.1682855. This value implies that when effect of
consumer trust increases by 1%, the consumer purchasing will also increase by 0.1682855. There
is a positive relation between these two variables and it does makes logical sense as when
consumer trust increases on online shopping, consumer tends to purchase more online.
SLOPE COEFFICIENT X6 INFORMATION SATISFACTION:
The estimated value of slope coefficient is 0.1036766. This value implies that when information
satisfaction increases by 1%, the consumer purchasing will also increase by 0.1036766. There is
a positive relation between these two variables and it does makes logical sense as when
information about the product satisfies the consumer, consumer tends to purchase more online.
Regression Model:
The regression results indicate that the F-statistic is equal to 47.06 and its p-value is 0.000.
Therefore, we can conclude that the overall model is statistically significant at the 1% level. As
the overall model is significant, all the independent variables collectively explain the variation in
the dependent variable.
Adjusted R2:
The regression results indicate that the R2 value is 0.5121. The R2 value implies that 51.21% of
the variation in CPB is being explained by the variation in all IV variables inputs. As the R 2 is
quite high, the model seems to have a good fit. Furthermore, the adjusted R 2 value is 0.5012. The
adjusted R2 value is slightly lower than R2 as expected. Nevertheless, it is also quite high which
suggests that the model has a good fit.

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 3.4. Shapiro-Wilk Test:

. swilk avgcpb avgwa avgcm avgis avgce avgct avgims

Shapiro-Wilk W test for normal data

Variable Obs W V z Prob>z

avgcpb 276 0.92053 15.727 6.442 0.00000

avgwa 276 0.96550 6.826 4.491 0.00000
avgcm 276 0.96961 6.015 4.195 0.00001
avgis 276 0.95704 8.502 5.004 0.00000
avgce 276 0.98870 2.237 1.882 0.02990
avgct 276 0.98918 2.142 1.781 0.03749
avgims 276 0.97780 4.394 3.461 0.00027

Ho=error term is normally distributed in the model.

As we can see the p value of all the variables are lower than 0.05, So we will reject the null

hypothesis.

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4.0. Conclusion:

Within the profoundly competitive showcase and innovation progression with the utilization of

web it has moved the traditional advertising to digital marketing procedures. Digital marketing

grab wide zone and within the profoundly competitive advertise it include investigating

commerce show utilizing advanced innovations which decreases fetched and grow trade all

inclusive. Nowadays digital marketing has a more prominent scope of growing their commerce

within the future as customers are much more fulfilled by doing online shopping as they discover

digital marketing much more secure than traditional marketing. Digital marketing give

opportunity to the customers to have a see on the data of the item given by the company and can

able to do comparison in like manner, so that they are able to appreciate right to choice and can

put arrange at any time 24*7 at any place. With the upgraded technologies and increment within

the utilization of web engagement, interconnectivity of customers is expanding day by day. This

research study examines the effect of digital marketing on buyer buying of customer. As a result,

digital marketing has positive affect on consumer buying behavior, traditional marketing soon

should be shifted to digital marketing.

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