MUHAMMAD ALI JINNAH UNIVERSITY

FINAL PROJECT
The Impact of Social Media Marketing, Consumer Perceived Value and Sales
Promotion on Purchase Decision: With Mediating Effect of Live Chat

COURSE: Business Research Methodology Presented

to: Sir Dr. Qamar Abbas

by

PARTICIPANT:
Quratulain (FA18-MBAP-0096)
Komal Huda (FA18-MBAP-0086)
Sumaira Haque (FA17-MBAP-0091)
Selvester Haroon Ashraf (FA17-MBAP-0007)
Muhammad Ahmer Ali (SP19-MBAP-0018)

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 Table of Contents
1 Introduction: .........................................................................................................................................
3

1.1 Overview of the study ...................................................................................................................

3

1.2 Background ...................................................................................................................................

4

1.3 Problem Statement .......................................................................................................................

5

1.4 Research Objective ....................................................................................................................... 6

1.5 Research Questions ...................................................................................................................... 6

1.6 Significance of the study ............................................................................................................... 7

1.7 Scope of the study ........................................................................................................................ 7

1.8 Conceptual framework ................................................................................................................. 8

2 Literature Review ..................................................................................................................................

8

2.1 Theoretical Background ................................................................................................................

8

2.2 Hypothesis Development ..............................................................................................................

9

2.3 Empirical Studies .........................................................................................................................

11

3 Research Methodology .......................................................................................................................

18

3.1 Introduction ................................................................................................................................

18

3.2 Research Approach .....................................................................................................................

18

3.3 Research Design ..........................................................................................................................

19

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 3.4 Target Population........................................................................................................................
19

3.5 Sample Size .................................................................................................................................

20

3.6 Sampling Technique ....................................................................................................................

20

3.7 Data Collection Instrument .........................................................................................................

21

3.8 Data Analysis Technique .............................................................................................................

21

4 Data Analysis .......................................................................................................................................

22

4.1 Pilot Study ...................................................................................................................................

22

4.2 Predictive Relevance ...................................................................................................................

23

5 Conclusion and Recommendations.....................................................................................................

24

5.1 Conclusion ...................................................................................................................................

24

5.2 Recommendations ......................................................................................................................

24
5.3 Future Research ..........................................................................................................................
25

6 References ..........................................................................................................................................
25

7 Appendix .............................................................................................................................................
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ABSTRACT

The study has aimed to investigate the role of customer perceived value, sales promotion and social
media marketing towards purchase decision in online shopping in

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Dusty with the mediating effect of live chat experience in Karachi, Pakistan. Total 150 sample
responses were collected from Karachi city of Pakistan using convenience sampling technique,
whereas five-point Likert scale questionnaire was used as data collection instrument. For data
analysis using SSPS. The results showed that consumer perceived value has significantly positive
impact on live chat, sales promotion has significantly positive impact on live chat and social media
marketing has significantly positive impact on live chat. Moreover, live chat has significantly
positive impact on purchase decision. In regards to mediating effect of live chat, the results have
shown that consumer perceived value has significantly positive impact on purchase decision, sales
promotion has significantly positive impact on purchase decision and social media marketing has
significantly positive impact on purchase decision. The findings indicated that managers should
understand the implications with respect to social media marketing in the Pakistani context;
although this variable was found to be insignificant in affecting decision of purchasing in the retail
factors, it may provide different results in future research.

Keywords: Social media marketing, sales promotion, consumer perceived value, live chat,
purchase decision.
1 Introduction:
1.1 Overview of the study
Technological advancement is improving day by day and people are getting used to
technology, even almost all basic need of daily routine is incomplete without the usage of
technology. Moreover, technology is not only restricted to perform tasks, but also used as a

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medium of communication, marketing and businesses. So, the business and trading of E-commerce
emphasize on facilitating the trade of products and services by utilizing the computers, it is making
quick progress, because it is acknowledged and utilized as a business principle. We can state that
the way toward shopping on the web is getting to be traditional (Namdeo, Ledwani, Kukreja, &
Barde, 2015). Web based shopping is a standout amongst the most essential and well known
application of Internet. In past, the focal point of the deals was about strong promotion on web,
but today relatively all products and services can be sold and purchased (Köksal & Penez, 2015).

The report of the researchers says that, “web based business is emphasizing on both as far as the
quantity of users, who are shopping, and also the aggregate sum of individuals, who are spending
by means of transaction on internet". The explanation behind utilizing the web for individual
shopping was reasonable, trailed by accessibility of seller data, there will be no stress from
salesman, it is efficient and minimal time consumption (Namdeo et al., 2015).

According to some statistics, in 2017, an estimated 1.66 billion people worldwide

purchased the goods online. During the same year, global e-retail sales amounted around 2.3
trillion U.S. dollars and projections show a growth of 4.48 trillion U.S. dollars by 2021 . In Asia,
e-retail sales reported for 12.1 % sales in 2016 but just only for 1.8 % of retail sales in the Middle
East and Africa 1. Numerous studies show some empirical proof that, vendors should essentially
take part in correspondence with their buyers to build up brand loyalty and manage positive
relationship with the customers. That is the reason, numerous site administrators, including
substantial online retailers such as Taobao.com and Amazon.com have inserted the live chat option
in their shopping portal, to empower them, to right away react to customer questions (Kang, Wang,
Tan, & Zhao, 2015).

1.2 Background
In recent times mobile shopping in Pakistan and internet usage are increasing day by day
this study aims to explore the internet purchase decision because internet users are rising from

1
https://www.statista.com/topics/871/online-shopping/

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133,900 to 44,608,065 in between the years of 2000 till 2018 1. Today, Pakistan’s online purchasing
economy is growing rapidly and people are shifting from store purchasing to online purchasing.

Due to the initiation of 3G and 4G services, the proportion of digital shoppers is increasing (Islam
et al., 2018).

But in return, customers are expecting more from vendors, basically the individuals who
are involved with the electronic commerce. For these purchasers, the negligible demonstration of
inactively checking the product through the online stores is not enough, any more. Actually, the
lacking of connection among buyers and merchants or in other words common offline market
platform factor has reduced the buying capabilities of the buyers (Kang et al., 2015). In traditional
shopping store, purchasers can pass judgment on the dependability of the retailer by the appearance
and ambiance of the stores. In addition, they can check and inspect the products to assess their
characteristics. Most of the clients are offered versatile help by sales man. Moreover, the seller can
perceive choice style of the consumer, and give custom-made facilities and suggestions. They
confront an alternate arrangement of data, including scores of merchants' criticism, review of the
product, value and price of the products. In this manner, feedback profiles and reviews of the
products are fundamental parts of the online framework, which makes it workable for outsiders to
rely in one another and lead business exchanges without hesitation (Tan, Wang, & Tan, 2016).

1.3 Problem Statement

Consumers are comfortable with using self-service technologies living in the age of the
informed consumer. Consumers are comprehensively informed regarding the products and
services they aimed to purchase. A complex combination of touch points determine the consumer
experience for the brands as well as the engagement of retailers using the items with respect to
personalized, emotional, and immediate content for determining its achievement (Parise, Guinan,
& Kafka, 2016).

1
https://www.internetworldstats.com/asia/pk.htm

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 Consumers interact with websites in order to navigate using the web pages and filtered
using the information in order to acquire appropriate product information before consumers
committed to online purchases. The flexibility that consumers have in order to control product
information is restricted due to the complex navigation and inadequate approaches of retrieving
product information when using sales website. Users might still found information endowed on
the websites to be restricted and not beneficial at times in spite of efforts to improve the flexibility
of users interaction (Jiang, Chan, Tan, & Chua, 2010). The behavior of information providers is
appropriate to the information value due to their influence on uncertainty and presence reduction
in the decision-making process of searching stage of user (Lv, Jin, & Huang, 2018). In contrast,
interaction between sellers and consumers have been rarely explored by online stores, which have
disrupted the consumers’ purchase intentions (Mero, 2018).

Kazmi and Abid (2016) have suggested regarding the customer satisfaction that it is not
merely relies on the technical issues as well as on social issues. The functions of the customer
service department required to get informed in order to acquire the highest perceived value of
customers. The interaction with customers is guided with the representatives of customers in order
to motivate them.

On the other hand, different aspects of online purchase decision have been investigated by
numerous past researches. To this end, Jiang et al. (2010) have investigated the contribution of
interactivity for online purchase decision whereas while Köksal and Penez (2015) have examined
the effect of assorted factors on web trust in online shopping. In addition, extensive literature has
evaluated the contributed of live chat experience in online shopping (Kang et al., 2015; Lv et al.,
2018; McLean & Osei-Frimpong, 2017; Namdeo et al., 2015). On the other hand, the importance
of assorted factors has been particularly targeted by the ecommerce industry in the past few years
(Kazmi & Abid, 2016; Mero, 2018; Namdeo et al., 2015; Parise et al., 2016). However, the
importance of live chat in the context of purchase decision in e-commerce market has been rarely
evident although organizations are increasing quickly and the consumers are implementing the
functions of live chat as consumer support (McLean & Osei-Frimpong, 2017).

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1.4 Research Objective
The study has aimed to investigate the role of customer perceived value, sales promotion
and social media marketing towards purchase decision in online shopping industry with the
mediating effect of live chat experience in Karachi, Pakistan.

1.5 Research Questions

• What is the direct impact of customer perceived value, sales promotion and social
media marketing on live chat experience?

• What is the direct impact of live chat experience on purchase decision?

• What is the indirect impact of customer perceived value, sales promotion and social
media marketing on purchase decision with the mediation of live chat experience?

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1.6 Significance of the study
Managers always use different techniques and marketing strategy to develop and attract the
customer’s attention and try to convert that attention in to the customer’s decision to purchase the
product. Moreover, the perception of the consumer is diverted from the traditional shopping
behavior towards Online shopping because in the present period, the consumer avoids to go out for
shopping due to the lack of time and they satisfy their shopping needs through web based shopping
platforms. On the other hand, purchase decision is backed by numerous factors, which are need to
be identified by the managers or practitioners. However, there are some important elements are
discussed in this research, such as; social media marketing, consumer perceived value and sales
promotion with the mediating impact of the live chat, that assists the behavior of purchase decision
of online shoppers of Karachi, Pakistan. This research is also beneficial for the academicians as
well to understand or realize the purchase decision of the consumer, by the mediating effect of live
chat. Furthermore, the wide-spread view of this research can facilitate the managers to determine
or regulate their marketing strategies in future, which can be helpful for the organization to increase
its profit and sustain in the competitive market of online business in Karachi, Pakistan.

1.7 Scope of the study

Initially, the purpose of this research is to develop the understanding of purchase decision
of online shoppers in, Pakistan. This research is the medium of provision of opportunity to the
managers, professionals, marketers and entrepreneurs, to enhance their businesses or companies,
by introducing the innovative policies, to attract the customers and their attention. In the same
manner, the attitude of the customers towards shopping is shifted from traditional shopping to the
technological shopping, so it is necessary for the stake holders of the companies, to realize this
shifting behavior of the customers, and develop a plan according to the customer’s behavior and
attitude. Moreover, most of the consumer are focusing over the online shopping platform because
of lack of time and varieties, and consumers think that it is better to choose and purchase the online
product. Similarly, one of the important factor is that the consumers get the immediate response of
the seller through online chat, which is escalating the online market. Therefore, the changing
behavior of the customers is also forcing the managers and professionals to adopt some new

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strategies, in this context, the scope of this research is very significant among the organizations to
grow their business and make profit, in the present era, especially in Karachi, Pakistan.

1.8 Conceptual framework

Following is the conceptual framework of the current study

2 Literature Review
2.1 Theoretical Background
Another well-known attempt to develop an integrator demonstrate for customer activity is the
Motivation-Opportunity-Abilities (MOA) model which has been proposed by Ölander and
Thøgersen in the year 1995. They pointed to the enhancements in prescient control achievable by
joining an ‘ability’ concept and a concept of encouraging conditions or ‘opportunity’ to perform the
behavior into the model. However, Thøgersen and Ölander (2003) also propose a few other
possibilities here, counting the utilize of the motivational portion of Triandis’ show. The ‘ability’
concept is assumed to join both a habit and an assignment information component. Its inclusion in the
model draws support from a variety of places, including previous research on waste separation and
recycling behaviors (Gottfredsen & Thøgersen, 1994; Thøgersen, 1996). Habit is both an
independent determinant of behavior and a moderator of intention. The impact of situational factors
on buyer behaviors has been raised a number of times in this survey. The available component of the
MOA demonstrate is clearly related to Triandis’ concept of encouraging conditions and Stern’s idea of
outside conditions. Though Ölander and Thøgersen prefer to see opportunity as

‘objective preconditions for behavior’, this aspect of the model also has some similarities with
Ajzen’s concept of perceived behavior control – at least in so far as the latter concept is regarded
as being a proxy for actual behavior control. Evidence for the importance of situational factors as a

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precondition for pro-environmental behavior is plentiful (Guagnano, Stern, & Dietz, 1995;
ThØgersen, 1995).

The important structural feature of the MOA model is its attempt to integrate motivation,
habitual and contextual factors into a single model of pro-environmental behavior. This is even
more important as energy behavior is mainly habitual behavior, rather than based on conscious
decisions (Gruen, Osmonbekov, & Czaplewski, 2005; Siemsen, Roth, & Balasubramanian, 2008).

2.2 Hypothesis Development

Social media marketing, live chat experience and purchase decision
The recent developments in communication technologies have changed the ways in which
consumers interact with each other (Wong, 2013). Through the back of social media, organizations
can construct their capabilities in locks in with committed and beneficial clients, affecting their
discernments towards their items or administrations and sharing the data with others
(McConnochie, Walton, Campton, Inglis, & Omar, 2017). The authors added that social media
tools enable companies to learn more about their consumers’ needs and expectations (Köksal &
Penez, 2015). Thus, marketing through social media channels is regarded as one the most
costeffective means of communication and useful approaches to obtain customers’ information (Lv
et al., 2018; Mero, 2018). It was also indicated in the literature that as a form of marketing
communication, user-generated social media plays a significant role in forming brand choice
(Hanaysha, 2018; Parise et al., 2016). Further, prior literature revealed that a number of scholars
reported that social media marketing plays an important role in forming consumers’ purchase
decisions (Hanaysha, 2018; Kazmi & Abid, 2016).

Customer perceived value, live chat experience and purchase decision

The perception of value was weighted towards extrinsic characteristics of a product with
suggestions that packaging played a vital role in selection between unknown brands (McConnochie
et al., 2017). Judgements based on pricing strategies significantly decreased the consideration
process and facilitated a sense of value, interestingly the original price was not considered within
this process, and it was driven purely by the promotional pricing (Hanaysha, 2018). Promotions

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offering money off to incentivize purchase were in some cases harmful to the perceived value and
a sense of distrust ensued with feelings the product may be flawed (Jiang et al., 2010; Kazmi &
Abid, 2016).

Sales promotion, live chat experience and purchase decision

Within the open showcase, advancements are regularly the key calculate in consumer buy
among bounty choices of items and the tall item homogeneity that manufacturers stretch more on
advancements. Aiming at sales promotion and purchase intention, McConnochie et al. (2017) found
out the notably positive effects of sales promotion on purchase intention. Chang (2017) discovered
the highest perception of promotion in consumer purchase intention, with significant effects. Within
the scope of the relationship between promotional offers and purchase intent several factors
emerged that, for the most part, were driven by extrinsic characteristics (Chang, 2017;
McConnochie et al., 2017). It was found that cost affectability would play a noteworthy part and
may affect not as it were brand choice but store choice, with a few respondents demonstrating that
they would visit numerous shops in arrange of getting a lower estimated thing (McConnochie et al.,
2017; Suresh, Anandanatarajan, & Sritharan, 2015).

Live chat experience and purchase decision

Live chat can help consumers reduce product uncertainty by providing product information
and increasing presence through communication with sellers (Kang et al., 2015; Mero, 2018;
Namdeo et al., 2015). For product data, customers (as data searchers) procure critical data by
communicating with dealers through live chat, in this manner decreasing a huge set of conceivable
convictions with respect to items (e.g., quality and fit issues), to a small set (McLean &
OseiFrimpong, 2017; Tan et al., 2016). Hence, uncertainty is eventually reduced. The effective
utilize of live chat (e.g., utilizing funny language, pictures, or emoticons) can encourage shared
mindfulness between buyers and dealers, making the discussion comparable to conventional faceto-
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face communication, which in turn increases social presence (Lv et al., 2018). On the other hand,
live chat enables an interactive channel, which helps accelerate verification and negotiation
processes, thereby enhancing interactivity (Mero, 2018).

2.3 Empirical Studies

Social media marketing and purchase decision

Das and Mandal (2016) worked to see that how social media marketing affect consumer
brand purchase decision making. Major variable taken for this research include Social media,
purchase intention, loyalty, young customers, brand series and online shopping. Researcher
collected 232 useful data with the help of Likert scale survey. To measure the hypotheses, they
work with Structural equation modeling. Results showed a strong affirmative impact of social
media contact on brand socialization. The researcher had also established a major impact of social
media marketing on purchase intention for young consumers. Future research would discover
further on the backgrounds of brand socialization and its values according to the concept needs and
empirical testing and theory building.

Duan and Dholakia (2017) investigated the post behavior of consumer on social media
which influences their own happiness. Key variables used in his research were Happiness, Social
media, Impact of purchase on interpersonal relationships, Impact of purchase on self-posting
purchases. They gathered data from 176 undergraduate using Likert scale questionnaire social
media users who had watched 30 advertisement video of a carnival cruise moreover data was
analyzed using regression analysis of variable. Findings also draw research attention to the effects
of conspicuous consumption on consumers who engage in it. Conspicuous consumption is a
behavior for showing off wealth to maintain or gain social status through publicly consumed goods.
Managerially, this research suggests a way to increase consumers’ perceived impact of a
consumption item on self, interpersonal relationships and finally happiness – encouraging UGC
about purchases on social media.

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 Prasad, Gupta, and Totala (2017) scrutinized the valuable insight into the context of social
media, electronic word of mouth, trust, and purchase decision. Variables used for this research were
trust, social media, electronic word of mouth, internet marketing and data was collected from 252
respondents. Auxiliary condition modeling was utilized to look at the proposed demonstrate.
Results indicate that Social media usage and EWOM have positive impact on purchase-decision
involvement and online trust plays a vital mediating role in this context. The suggestions of
discoveries of this investigate are important for directors and open approach producers. This model
confirms that the strategy for electronic communication will be effective in true sense if it is ensured
to develop trust in this context among people.

Song and Yoo (2015) scrutinize impact a customer’s purchasing decision during the
purchase stage of service consumption. Variables used in this research were E-service, Social
media, Customer behavior, Pre-purchase stage, Purchasing decision, Service consumption. A total
of 150 usable questionnaires were collected. Factor analysis was performed to condense the large
set of independent variables, and multiple regression analysis was performed to test the study
hypotheses. The results show that the advantage of social media does have an affirmative relation
with customers purchase decision, but not all items are crucial to a similar extent. Functional and
monetary (free coupons, price discounts, special deals) benefits from social media were found to
have a positive impact on customers’ purchase decision

Hutter, Hautz, Dennhardt, and Füller (2013) explained the impact of customer interactions
in social media on brand awareness, and purchase intention a case of Facebook and MINI. Variables
used in this research were Social media, purchase decision, Branding and User generated content.
Researcher uses 311 respondents for their further research and applied SEM modeling with Amos
18. Researcher clearly indicated that their results shows impact of social media purchase decision
of customers. The researcher also suggest that other factors are also influencing purchase decision
so the model could also be refining and deepen the understandings.

Perceived value and purchase decision

Chen and Chang (2012) investigated the green purchase intentions by examining the roles
of green perceived value, green perceived risk and lastly, green trust. The variables under

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consideration were the same as mentioned above. 258 respondents were included in the study and
questionnaires constructed on 5 point Likert’s scale technique and were sent to collect the
responses. For verifying the research framework structural equation modeling was applied. The
results showed that green perceived value was positively linked with green trust and green purchase
intention. On the other hand, green perceived risk had negatively impact on both of them
simultaneously. The relation between green purchase intention and two respective antecedents the
green perceived value and green perceived risk were mediated by green trust only one sided. In the
end, it was suggested to increase perceived value and to reduce green perceived risk if green trust
and green purchase intentions were meant to be valued.

Chiang and Jang (2007) scrutinized the effect of perceived value and brand image on
purchase intention and value. The variables considered under investigation were perceived price,
brand image, perceived quality, trust, perceived value, and purchase intention. Data was compiled
from 404 students who participated in the research and seven point Likert scale was utilized as the
technique for data collection. Confirmatory factor analyses were used to test the data and to verify
the framework. The results identified clearly that if; leisure travelers perceived the affordability of
the price as satisfying than their internal standards set for prices or prices offered by competitors
they would create a perception that there would be an issue with the quality but because of the high
consumer value their purchase intention would raise. Keeping all aligned; trust appeared to be
prominent in improving long term customer value when online purchases are concerned.

Oh (1999) went in depth to test an integrative model of service quality, customer value, and
customer satisfaction. The most crucial variables which were selected for the creation of model
included price, perception, service quality, customer value, customer satisfaction, purchase decision
and word of mouth communication. From the two big brands data was compiled from 545
participants using six points scale designed for each variable separately. The model was analyzed
and tested using path analysis via maximum likelihood estimator of LISREL 8 further, path analysis
estimated multiple regression analysis simultaneously. The results indicated that perceived value is
an instant antecedent towards customer satisfaction and intention to repurchase. The framework
assists in understanding customer decisions processes as well as it can be a great indicator for
evaluating company performance.

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 Patterson and Spreng (1997) analyzed the linkage between perceived value, satisfaction and
repurchase intentions in a B2B context. Perceived performance, value, repurchase decision,
satisfaction were the core variables under critical investigation. Before the development of
questionnaire qualitative method was utilized and interviews were conducted to reach this point.
For quantitative analysis the questionnaires were collected from 128 respondents and were
developed on the basis of seven-point Likert scale technique. Confirmatory factor analysis, SEM
and mediation test were tested to verify the model construction and to discuss further results. The
results reported that value is entirely mediated through satisfaction in influencing the purchase
intentions repeatedly. It was suggested that five dimension of process which were methodology,
service, relationships, global and problem identification must never be ignored when constructing
a marketing strategy.

Ponte, Carvajal-Trujillo, and Escobar-Rodríguez (2015) investigate the influence of trust

and perceived value on the intention to purchase travel online while integrating the impact of
assurance on trust antecedents. Key variables used in this research were E-commerce, trust,
assurance, privacy concerns, security, and purchase intention when buying online. The respondents
in this research were totaled to 451 and the data was gathered using seven points scale. Furthermore,
data was analyzed using regression analysis of latent variables used in this study based on partial
least square (PLS) optimization technique. The results as per the research tests indicated that online
purchase intention depended on perceived value and trust equally. One of the recommendations in
many was that travel companies should implement communication tactics on their official website
to increase awareness and understandings.

Sales promotion, live chat experience and purchase decision

Hanaysha (2018) has examined the effects of corporate social responsibility, sales
promotion, store environment, perceived value, and social media on a purchase decision in the retail
sector. To this end, the study has included a quantitative research methodology for collecting 278
customers of retail stores in Malaysia. Moreover, the study has analyzed the data collected using
SPSS 19 and structural equation modelling on AMOS. The results have indicated that there is a
positive impact of corporate social responsibility on the purchase decision while a negative effect
is shown on purchase decision by sales promotion. The findings have indicated that consumer’s
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purchase decision is significantly and positively affected by store environment. On the other hand,
the results have shown that the influence of social media marketing is insignificant on purchase
decision. Moreover, the findings have indicated that there is a positive and significant impact of
perceived value on a purchase decision.

Chang (2017) has studied the effects of sales promotion on purchase intention and consumer
involvement in tourism industry. To this end, the study has selected a total of 421 consumers using survey
questionnaires from tourism industry. The study has analyzed data collected using Pearson correlation and
regression analysis. The study has found a significant correlation between sales promotion and consumer
involvement. Moreover, the findings have shown a significant and positive correlation between consumer
involvement and purchase intention. In addition, the study has indicated a positive and significant
correlation between purchase intention and sales promotion. Thereby, the study has revealed that sales
promotion has been the routine marketing of businesses appealing consumers in order to make orders and
increase media exposure recently.

Suresh et al. (2015) has identified the effect of sales promotion tools on consumer purchase
decision with respect to specialty product. In addition, the study has made efforts in order to explore
assorted sales promotion tools and its influence on purchase decision toward specialty products. To
this end, the study has collected data using convenience sampling of 109 participants via descriptive
research design technique. The study has analyzed the data using multiple regression analysis. The
findings have indicated that offer, contest, and premium are the most impacting variables among
the various sales promotion tools for consumer purchase decision. In this regard, the study has
indicated that the purchase decision of consumers is influenced by assorted promotional techniques
used by the marketer.

McConnochie et al. (2017) have explored the influence price promotions on FMCG
purchase decision making of students. In addition, the study intends to increase understanding of
the influences in-store grocery price promotions on brand switching. The study has conducted data
through focus groups where core perceptions were developed around the central themes, which
provide an additional inquiry in order to expand on segment certain consumer responses to price
promotions. To this end, the study has identified that both brand loyalty and the consumer
decisionmaking process are influenced by price promotions. In addition, the study has found a
negative impact of promotions on consumer brand perception. Thereby, the study has suggested

17
that the concept of over-purchase appeared as customers perceive a greater sense of control,
preferring discount over multi-buy promotions.

Horbal, Naychuk-Khrushch, and Orlykova (2017) has aimed to identify the role of
disclosure and analysis of the internet tools in promoting and advertising goods and services by
marketers. In addition, the study has determined the meaning of advertising on internet,
methodological and practical issues of development and functioning of internet advertising on
promoting services and products. The study has found that the main risks and complexities of the
internet tools for promoting and advertising, ranked and detailed by their significance for business.
Therefore, it was observed that the major risks and complexities of the internet tools in order to
advertise and promote products include the choosy behavior, cyber risks, and high competition.
Moreover, the study has shown the main benefits of internet advertising, which include wide
geographical coverage, time, and economy of costs.

Live chat experience and purchase decision

Kang et al. (2015) have examined whether service attributes accessible on apparel websites
for women different from apparel websites for men with respect to EASQUAL dimensions. The
study has selected 97 apparel websites of men and women, comprised of assorted apparel websites
that fairly present US retail apparel websites. The study has analyzed data collected using chisquare
analysis and ANOVAs. The findings have shown that there exist differences between apparel
websites of men and women in order to provide online services that enhance e-service quality. In
addition, the study has indicated that e-service quality is improved by websites of women as
compared to websites of men. The findings of content analysis recommended that the availability
or distribution significantly differed between men and women apparel websites with respect to e-
service characteristics. E-retailers of men’s apparel should provide e-services at a more
sophisticated level for additional growth of men’s apparel shopping using the internet.

Ayanso, Cho, and Lertwachara (2014) have used the two-step clustering algorithm for
profiling web retailers with respect to website functionalities and web performance metrics. A total
of 500 US web retailers ranked by their 2006 annual sales were included in this study. The study
has founded that the presence of complementarities among sets of functionalities related with

18
significantly different rates of conversion and monthly visitation is indicated from the essential set
of functionalities. The findings have also illustrated that different profiles possess traditional
channels for web-only retailers as compared to non-web retailers. The study has indicated that
significant efforts are attempted by web retailers in order to manage functionalities that can attract
and convert audience. The lack of an informed decision-making process often drives to a significant
overlap in investment in functionalities and marketing efforts. Thereby, this study has suggested
that decisions of retailers might be useful in order to provide website functionalities and to manage
their conversion rates and other associated metrics.

Kang et al. (2015) have implemented a conceptual framework of opportunity, motivation,

and ability in order to extend the understanding of antecedents of using live chat and to increase the
understanding on ultimate intention of an individual for transacting the website from the
trustoriented perspective. To this end, the study has included a total of 222 online consumers using
an online survey questionnaire. The findings analyzed have shown that perceived personal
expertise, encapsulated under motivation dimension, fears of seller opportunism, and perceived
information asymmetry manifested the use of live chat and ability dimension. Furthermore, the
results have shown that the perceived interactivity of consumers is positively affected by live chat;
therefore, expanding their transaction interest. The impact of live chat on consumers’ perceived
interaction and its impact of intention to transact online of an individual are negatively moderated
by the consumers’ trust. Thereby, the findings have suggested that understanding communication
services for the actualization of real-time communication technology particularly for e-commerce.

Fang (2012) has focused on online interactively strategies of sellers and intends to examine
its contribution in purchase decision-making process in an online platform. In addition, this study
aims to understand the influence of each component of sellers’ online interactivity strategies on
transaction intention via consumer perceptions and moderating effect of consumer perceptions on
product types. To this end, the study has collected data from 475 participants using an online survey
questionnaire. The study has revealed that there is a moderate association between perceived
deception and image creation with respect to product type. Moreover, the study has supported that
online decision-making can be supplemented by online interactivity with respect to product
information. However, the study has indicated that some customers hesitate to shop online as they
cannot afford an opportunity in order to investigate products before purchase.

19
 McLean and Osei-Frimpong (2017) has expanded understanding of online customer support
with respect to online live chat systems. To this end, a total of 302 participants of real-life chat
service experiences with mobile phone network providers have been included using a webbased
survey in the UK. In addition, the study has analyzed the data collected using structural equation
modeling. The study has indicated that the experience satisfaction is influenced by importance of
service quality, system quality, and information quality. Moreover, findings have indicated that the
purpose of use is relied on the system quality, service quality, and information quality. In addition,
findings have indicated that experience satisfaction of consumers is outlined through the presence
of service reps picture, information quality, and system quality, influence of service quality, the
presence of response time estimations, and the role of emoticons.

3 Research Methodology
3.1 Introduction
This chapter primarily focused describing the research methodology of the current study.
The chapter comprehensively discusses different research approaches, purposes and design
methodology for clarifying their nature and further, pronounces rationale for selecting appropriate
methodology for the study. Furthermore, the chapter also provides some rationale for sample size
selection and sampling technique, data collection instrument and data analysis technique while
deliberately discussing the ethical considerations followed during the entire duration of data
collection and analysis.

3.2 Research Approach

In management sciences, there are mainly two major types of research approaches entitled
as quantitative research approach and qualitative research approach and these two largely debated
by scholars and researchers; therefore, it is utmost important to describe the two approaches
purposefully. In this context, Patton and Cochran (2002) described that qualitative research relates
to develop understanding some phenomenon or social activity using, in general, words rather than
numbers. Importantly, qualitative researches have great integration and penetration to social
phenomenon and to undertake in-depth inquiry rather than simple cause-and-effect analysis (Flick,
2009). On the other hand, Muijs (2010) pronounced quantitative research in a very impressive
20
manner that it deals with specific scenario with the help of statistics and numbers precisely. It is
basically the methodology that encompasses mathematical estimations and statistical inference for
explaining, rather than exploring, the phenomenon. Henceforth, on the basis of aforementioned
discussions, the study has concluded that to achieve particular objectives and answer research
questions, quantitative research approach suitably aligns within the current research horizon.
Moreover, the current study has specific objective about the phenomenon; therefore, the study has
purposefully decided to employ quantitative research approach.

3.3 Research Design

Research design is basically deals with the planning and framework for data collection and
analysis. In general, research design has been descended into three major categories including
descriptive, correlational and causal. The descriptive design enables the research to describe the
scenario and summarizing characteristics of larger population that are linked or associated with the
scenario, phenomenon or social activity (Muijs, 2010). On the other hand, correlational design
emphasizes on ascertaining the relationship between variables to understand the phenomenon in
more comprehensive manner that in descriptive research (Kothari, 2004). Moreover, the causal
design of research accentuated on determining the cause-and-effect scenario in regards to particular
phenomenon or social activity rather than simply identifying the existence of relationship amongst
various indicators. Causal research design enables the research to undertaken deliberate
comprehension of the phenomenon through manipulating the independent variables; henceforth, it
more often refers to the experimental designs (Kirk, 2007). Therefore, above discussion related to
research design has categorically highlighted that correlational research design suitably fits within
current research perspective and therein, the study has used correlational research design to
determine the impact of marketing tactics on purchase decision with the mediating role of live chat
in online shopping industry of Pakistan.

3.4 Target Population

As of recent statistics, published by Internetworldstats (2018), Pakistan has more than 42

million internet users approximately with total 22.2 percent penetration rate. These statistical

21
figures clearly illustrated the importance of online consumers for companies operating in Pakistan.
Therefore, the study has considered online consumers of Pakistan as target population. However,
due to accessibility challenges to collect data from entire Pakistan, the study has somewhat
restricted its data collection from the Karachi city, one of the populous and metropolitan cities of
the country. Henceforth, the study has privileged online consumers of Karachi city of Pakistan to
participate in the current study.
3.5 Sample Size

The study has used online sample size calculator Soper (2018) to estimate minimum
required sample size for the current study. The total 150 responses are required minimum for the
current study. Therefore, the current study has emphasized on collecting 150 responses from the
accessible population for data analysis.

3.6 Sampling Technique

Sampling methods basically emphasize on representation of the population by considering

subgroup of any population through appropriately designed data collection procedure (Yates,
1953). There are two wide-ranging sampling techniques in social and behavioral science researches
entitled probability sampling and non-probability sampling (Teddlie & Yu, 2007). The probability
sampling provides each unit of the population to participate in the study with zero chances of being
neglected or ignored while the non-probability sampling technique involves subjective judgments
particularly rather than focusing on comprehensive representation of the entire population (Teddlie
& Yu, 2007). These broad sampling methods have further distinguished categories. For instance,
probability sampling can further be divided into simple random, systematic random, cluster and
stratified, whereas non-probability sampling method can be categorized into convenience,
purposive, snowball and quota sampling techniques (Cochran, 2007).

In specific terms, purposive sampling and convenience sampling techniques are somewhat
seems similar; however both techniques have numerous distinctive characteristics (Yates, 1953). In
this regards, have well-defined the difference between convenience and purposive sampling
techniques proclaiming that collecting data from the most readily available and agreed units of
population to participate in the study that also fulfill the inclusion criteria is known as convenience

22
sampling. Whilst, purposefully selecting the unit of population based on researchers’ judgment and
knowledge, that also fulfill the inclusion criteria and have similar characteristics to accomplish
objective of the research (Kothari, 2004).

Therefore, on the basis of highlighted characteristics of two non-probability sampling

methods, convenience sampling suitably aligns with the current study and ultimately helps to
distinctively gained insight about the perception and opinion of online consumers of Karachi
towards the phenomenon. Hence, the study has used convenience sampling technique for selecting
desired number of responses from the entire accessible population.

3.7 Data Collection Instrument

There have been various data collection instrument for survey researches while amongst
them, five-point Likert scale have been one of the prominent and widely used rating scales. It was
developed by Rensis Likert in the year 1932 in his book entitled A technique for the measurement
of attitudes. However, the rationale for using five-point Likert scale is based on its widespread
acceptability and generalizability while it has been recommended by extant scholars for social and
behavior sciences (Allen & Seaman, 2007; Armstrong, 1987; Boone & Boone, 2012; Garland,
1991). Henceforth, on the foregrounds of prior evidence, the study has used five-point Likert scale
where strongly disagree denoted as 1 and strongly agree denoted as 5.

In regards to the measures and indicators of each latent variable, the study has adopted them
from various past literatures. Subsequently, five measures of social media marketing have been
taken from Hanaysha (2018) including “The social media marketing for this store’s brand are
frequently seen”,having Cronbach’s alpha of 0.428 Three measures of sales promotion have been
taken from Hanaysha (2018) comprising “Price deals for this store are frequently offered” having
Cronbach’s alpha of 0.511 Four measures of perceived value were taken from Hanaysha

(2018), for instance, “This store offers products and services that are good value for money” with
Cronbach’s alpha of 0.680. Total six measures of live chat were adopted from Kang et al. (2015),
for example, “I frequently use the live chat medium to communicate with the seller” with
Cronbach’s alpha of 1.000 Finally, five measures of purchase decision have been taken from

23
Hanaysha (2018) such as “I feel good about my decision to purchase decision from this store’s
brand” having Cronbach’s alpha of 1.000

3.8 Data Analysis Technique

In recent development in statistical inference and multivariate data analysis, Structural

Equation Modeling (SEM) has gained enormous attention from the researches of various fields like
behavioral sciences, marketing, psychology, medical and others. As well-described by Sarstedt,
Ringle, Smith, Reams, and Hair Jr (2014); Wong (2013), structural equation modeling is an
advanced multivariate analysis technique used for hypothesis testing while structural equation
modeling typically comprises combination of latent (unobserved) and indicators (observed)
variables. Structural equation modeling usually encompasses two modeling frameworks entitled
confirmatory factor analysis and path analysis (Wong, 2013). However, plentiful statisticians,
researchers and scholars have done remarkable work and put their efforts to distinguish various
characteristics of structural equation modeling (Byrne, 2016; Chin, 1998a; Hoyle, 1995; Lomax &
Schumacker, 2004). Amongst them, Chin (1998a) described two distinct approaches or types of
structural equation modeling namely covariance-based structural equation modeling, also known
as CB-SEM, and partial least square structural equation modeling or simply PLS-SEM.
Nonetheless, both the approaches to structural equation modeling have their particular applicability
and limitations in relation to research design, objectivity and findings (Lomax & Schumacker,
2004). More particularly, CB-SEM usually applied to researches with more than 250 sample
responses with normally distributed data, and more importantly, the conceptualization of the
theoretical relationship should be well-versed in the structural model (Wong, 2013). On the
contrary, exploratory models and experimental frameworks with less attention towards confirming
the theory would be more inclined towards PLS-SEM applicability rather than CB-SEM (Sarstedt
et al., 2014). It has further been clarified by Chin (1998b) that PLS-SEM appropriates with
exploratory models that emphasizes mainly on describing the phenomenon in novel direction while
having smaller sample size, non-normal data and focuses on predictive relevancy (Joe F Hair,
Sarstedt, Ringle, & Mena, 2012). Under these characteristics and viewpoint synthesis, the
appropriateness of PLS-SEM application in the current study becomes valid due to smaller sample

24
size and exploratory model; therein, the study has employed PLS-SEM using Smart PLS version
3.2.7.

4 Data Analysis

4.1 Pilot Study

Pilot Testing is important to conduct before measure the variables reliability. It assesses the

consistency of data before main-study data collection. Below table 1 shows the result of pilot study

which is depends on 150 responses & used Cronbach’s alpha reliability analysis for

statistical evaluation.
Table 1:

Pilot Study (n = 150)

Constructs N Items Cronbach's Alpha

Consumer Perceived Value 4 0.680
Live Chat 6 0.635
Purchase Decision 5 1.000
Sales Promotion 3 0.511
Social Media Marketing 5 0.428

As suggested by Nunnally (1978), the coefficients of Cronbach’s alpha must be minimum 81.2 % for pilot
study. Table 1 has shown that consumer perceived value has 68 percent reliability, live chat has 63.5
percent internal consistency, purchase decision has 100 percent reliability, sales promotion has achieved
51.1 percent internal consistency, and social media marketing has achieved 42.8 percent reliability.

Hence, all the variables have accomplished the satisfactory internal consistency at pilot stage

4.2 Predictive Relevance

Following table 7 provides result of predictive relevance of dependent variables in the structural model.

25
 Change Statistics
Std. Error
R Adjusted R of the R Square F Sig. F
Model R Square Square Estimate Change Change df1 df2 Change

1 .760a .578 .567 2.72303 .578 49.720 145 .000

4
a.
INTERPRETATION:
As we can see that the values of R are 0.76 which shows relationship among variables are quite strong.
Furthermore .578 which 57.8 percent change in dependent due to independent variables. Similar
adjusted R square shows reliability which is said to be less 10 percent as our values are well behind that.

5 Conclusion and Recommendations

5.1 Conclusion

This study pointed to look at the impacts of corporate social obligation, social media
promotion, deals advancement, store environment and seen esteem on buy choice within the retail
industry. The discoveries of this ponder moreover appeared that the store environment includes a
critical positive affect on buy choice. Store environment is an important means through which
retailers can influence consumers’ behavior and their purchase decisions. Thus, this study concludes
that sales promotions could have a negative effect on consumers’ perceptions towards brand quality
as lower priced items tend to have low quality Finally, the results of this research affirmed that
perceived value includes a significant positive impact on buying decision. Thus, retailers are
suggested to develop their customer value to accomplish greater competitive preferences within the
nearness of competitive marketplace environment. Therefore, store environment is an important
means through which retailers can influence consumers’ behavior and their purchase decisions.
Furthermore, the results revealed that sales promotion has a negative effect on purchase decision.
This study also suggests that retailers should focus on communicating their product values to
customers and compare their prices with those competitors and observe how they influence
26
consumers’ purchase decisions. Contrary to expectations, the results showed that the effect of social
media marketing on a consumer’s purchase decision is insignificant. The insignificant result could
be attributed to the lack of or inefficient marketing activities among the selected retail stores through
social media. Additionally, negative word of mouth through social media sites could lead to
negative perceptions among consumers, which may hinder their purchase intentions. Overall, social
media sites can be a strong platform for building brand awareness, but its effect on purchase
decision may not be strong enough in the retail context.

5.2 Recommendations

The examination of the coordinate impacts of corporate social obligation, social media
promotions, store environment, deals advancement and seen esteem on buy choice within the retail
industry gives a hypothetical contribution to the existing literature in this field. This study is one of
the few research studies which attempted to examine the causal link between these variables.
Especially, the discoveries have hypothetical importance by giving observational prove with
respect to the relationships between the expressed components and purchase decision. Moreover,
there are valuable down to earth suggestions for the commerce specialists of retail stores.
Supervisors can advantage from the comes about of this investigate to attain superior
acknowledgment and economical competitive advantage. The findings of this study also indicate
that managers should understand the implications with respect to social media marketing in the
Pakistani context; although this variable was found to be insignificant in influencing buy choice
within the retail setting, it may abdicate diverse results in future research.

5.3 Future Research

Future studies are suggested to depend on bigger sample sizes and totally different industry
contexts. Future studies may moreover look at other marketing components, such as social factors
and reference groups to pick up assist experiences approximately their role in influencing
consumers’ purchase decision within the retail segment. Finally, only five independent variables
were examined in this study; hence, future research can consider other factors that can influence
consumers’ purchase decision in the Pakistani retail sector such as service quality and store image.

27
Future analysts may wish to look at customer recognitions and evaluations of e-service qualities
recognized in this study and to survey the extent to which the accessibility of e-service properties
influence consumer satisfaction with online shopping and their purchase behaviors.

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7 Appendix

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