COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

MARKETING MANAGEMENT DEPARTMENT

EFFECTIVENESS OF TRADITIONAL AND DIGITAL MARKETING

IN INFLUENCING CONSUMER PURCHASING DECISION: A
COMPARATIVE STUDY

An Undergraduate Thesis
Presented to the Faculty of the
College of Business and Entrepreneurial Technology
RIZAL TECHNOLOGICAL UNIVERSITY
Pasig City

In Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Science in Business Administration
Major in Marketing Management

By

Fabian, John Daniel C.

Santos, Gian Jassen C.
Santos, John Carlo R.
Villanueva, Phillip John A.
 COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

MARKETING MANAGEMENT DEPARTMENT 1

CHAPTER II

REVIEW OF RELATED LITERATURE

This chapter discusses individual studies that are linked to the relevant

study. The article explains the theories, beliefs, and ideas related to the

researcher's study.

Consumer Purchasing Decision

Consumer behavior is all the activities, actions, and forms that

empower activities at the time before purchase, when to purchase, utilize, and

spend the taking after items and administrations to do things above or assess

exercises (Suwarman, 2015).

Consideration consumers in making purchasing choices contrast

between consumers with one another, one of which may be a lifestyle.

Lifestyle plays a critical part for buyers in making acquiring choices.

(Suwarman, 2015).

Consumer behavior was a generally later region of research within the

mid to late 1960s (Abdullah et al. 2017)

Consumers are fair as likely to purchase incautiously and be influenced

by mood, circumstance, and assumption as they are by family and friends,

promotions, and part models, agreeing to later studies. Both of these

contemplations come together to provide an all-encompassing show of

 COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

MARKETING MANAGEMENT DEPARTMENT 2

customer behavior that takes into account all consistent and enthusiastic

aspects of consumer decision-making(Anwar & Balcioglu, 2016).

According to the mentioned articles, it implies that there are various

types of factors in consumer purchasing decisions. Base to the following

research, consumers are just as prone to make reckless purchases and be

affected by emotion, situation, and belief as they are by family and friends,

ads, and models. On the other hand article says consumer behavior was the

study of consumers and the processes they use to select, use (consume),

and dispose of goods and services, as well as their emotions, mental and

behavioral reactions. Many things can affect consumer behavior, like

marketing campaigns, economic conditions, personal preferences and group

influence.

Traditional Marketing

The foremost broadly utilized mediums for mass marketing are daily

papers, magazines, radio, television, and the Web. Marketing is ordinarily

relied upon by the common open for news on political, social, and excitement

issues, as well as pop culture coverage. Data, standards, and concepts are

passed on to both general and particular gatherings of people through mass

marketing (Anwar & Shukur, 2015).

 COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

MARKETING MANAGEMENT DEPARTMENT 3

Concurring to comarketing Fred Allen, radio is considered a medium,

and small is done well on it. For their clients' advertisements, showcasing

buyers buy time on the web, tv, and radio, as well as space in daily papers

and magazines (Chen et al.2018).

Several of these outlets have diminished their reliance on public radio

whereas expanding their dependence on personal communication. With the

expansion of modern networks in the future, we are likely to see a result that

sets up certain scales between the individual and in this way the open, on

which these outlets can be found (Ali, 2021).

Traditional Marketing includes collecting information through the method

of market research and then analyzing the same to assist get it the

gatherings of people superior. The digital nature of the Internet technology

gives a comprehensive and point by point insight into the characteristics of

consumers and their conduct within the electronic environment. (Batinić,

2015)

In traditional marketing, the item, within the limit sense, is seen as a

result of the production process, with a few physico-chemical valuable

highlights simple to identify, which satisfy the consumers’ needs. Together

with the fabric substance of the object, the allure of the product is given by a

number of irrelevant elements (such as the brand), predetermined to reply to

the consumers’ expanded expansion of requirements (Nita, 2015).

 COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

MARKETING MANAGEMENT DEPARTMENT 4

From the findings of the study traditional marketing is still an effective

and vital method of marketing certain business. It is a marketing strategy in

which advertisers select their target demographic and put advertising where

they would see, hear, or interact with them offline, such as print ads,

billboards, or television commercials. Also, another article said that

traditional marketing involves obtaining information through market research

and then evaluating it to drive people together.

Digital Marketing

Coviello, Milley and Marcolin (2016) characterizes e-Marketing as

“Using the web and other intelligently innovations to create and intercede

discourse between the firm and identified customers”, distinctive analysts

have pointed out the Digital Marketing and extension of Online Managing an

account Services in diverse skylines, whereas at the same time the

development of both is parallel and synchronous. For the examination of cost

structure related with the Conventional and Electronic expenditure, we have

taken usage methods of ABC (Action Based Costing). The think about

concludes that the used and usage of Computerized Showcasing provides

companies an edge over the consumption which shows up as the extra

income for the company. It is additionally evident from the ponder that the

suitable diminish in the transaction fetched for companies after electronic

 COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

MARKETING MANAGEMENT DEPARTMENT 5

channels was relatively higher than that of the conventional channels. (Yusuf

Kamal, 2016).

Most individuals utilize digital marketing and social media intensively

through their part as customers of products and administrations as they seek

for data and data on the items devoured in expansion to communicating with

others approximately their encounters (S. A. S. Salloum & Shaalan, 2018).

These innovative progressions make the world see like a little town as

these communication media are able to encourage get to and interaction

with customers (Alghizzawi, Salloum, & Habes, 2018; Malik & Al-Emran,

2018; S. A. Salloum, Al-Emran, Shaalan, & Tarhini, 2019).

Consumers use advanced communication channels to explore for

product information and administrations. It has gotten to be portion of

people’s lifestyle (Stephen, 2016).

The number of web clients around the world has come to 4.1 Billion

where 92% of them get to the web from their mobiles. In the meantime, the

number of dynamic social media users recorded is at 3.56 billion (dazeinfo,

2018).

This study was shows that digital marketing was convenient because it

shows advance communication channel to reach out more potential or

prospect customers via different online ads like social media, emails, and
 COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

MARKETING MANAGEMENT DEPARTMENT 6

web-based advertising. These innovative concepts established that the world

seemed like a small town, as it was now easy to encourage customers from

different places to visit and connect with them. Nowadays, most people uses

social media in various ways, thus it is advantageous for businesses to create

online advertisements in order to quickly attract and generate sales via an

online platform. In our time, technology is everywhere; we can see it

anywhere we look, making it handier for us. Because it is a modern world,

producing sales in a modern style is easy, and we may see ads on social

media and many internet sites.

Psychological Influence

The conundrum of identity in showcasing resources that we all have an

identity, but we don't know how it is efficiently related to our behaviour as

consumers.(Boddy and Croft, 2016).

Consumers purchase brands not for their usefulness purposes as it

were, or maybe they buy these brands particularly in the event that they

reflect their identities. Hence, they tend to lean toward brands steady with

their identities (Banerjee, 2016).

Other identity characteristic analysts concluded that for the foremost

portion, identity characteristics are produced by nature and are steady, but a

few others demonstrated that identity characteristics will proceed to advance

 COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

MARKETING MANAGEMENT DEPARTMENT 7

and may indeed alter, in spite of the fact that the natural-born personality may

never alter (Mohammad, 2015)

We are on the cusp of an unused period of fast mechanical selection.

The Coronavirus malady (Covid-19) widespread has changed life,

significantly changing the way people live and work. In a world abruptly

frightful of touch and ruled by online intuitive, voice innovation is in tall request

(Investigate and Markets, 2020). As of spring 2020, about one-quarter (24%)

of grown-up Americans possess a voice collaborator (VA), up from 21% in

2019. Utilization is up as well, with over half (52%) of VA proprietors

announcing they utilize these gadgets at slightest once a day, up from 46% at

the starting of the year (National Open Media, 2020). Whereas much

investigate concurs that the utilize of VAs remains restricted to basic

assignments such as look, setting cautions, announcing the climate, and

playing music (Mari, 2019), voice commerce is on the rise, with deals coming

to $1.8 bn in 2018 and potential to reach $40 bn by 2022 within the Joined

together States alone (Hayllar & Coode, 2018). Be that as it may, in spite of

this burgeoning commercial center, scholarship has however to unload the

dimensionality of the VA shopping involvement.

When we talk about psychological factors that influence consumer

decisions, we are talking to the mind's or psyche's workings: motivation,

learning and socialization, attitudes and beliefs. Every day, consumers make
 COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

MARKETING MANAGEMENT DEPARTMENT 8

purchasing decisions. When consumers choose your product, they are

thinking about how to meet a need. In the article we found some consumers

buy brands for reasons other than utility, or perhaps they buy these brands

specifically because they reflect their identities.

Social Influence

In any case, the experimental endeavors for online customers

behavioral displaying on social media may result in its more prominent

adequacy, making it a real-time online showcasing apparatus for changing

online clients into potential clients through alter of conduct through profitable

data trade. The degree to which social media and the advancement of

behavioral displaying based on organized online social intelligent can decide

changes to buy eagerly and choice making conduct needs observational

understanding (Zhu & Chen, 2015).

With experimental evidence appearing that social influence relates to

positive alteration, it is key to capitalize on the social setting and utilize this

time as a period of speculation, maybe particularly amid middle school when

young people are thought to be most socially sensitive (Meadow, Magis-

Weinberg, Speekenbrink, & Blakemore, 2015; Van Hoorn, Van Dijk, et al.,

2016).
 COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

MARKETING MANAGEMENT DEPARTMENT 9

Youths changed their behavior in line with the standards of the

onlooker group and appeared more noteworthy prosocial behavior after input

from prosocial onlookers, but got to be more egotistical with reserved

onlookers (Van Hoorn et al., 2016).

Nowadays, social influence plays a significant part in marketing

strategies since other people have a significant influence on customer

decision making. People are affected by the judgment of others while

selecting whether to acquire or consume goods and services. The study says

that they attempt for online consumers behavioral exhibiting on social media

may result in its more adequacy and creating it a real time online promoting

apparatus for turning online clients into potential or prospect clients through

change of behavior via profitable data exchange.

Marketing Strategy

From the point of view of corporate promoting, marketing strategy may

be a potential resource method that incorporates openings and dangers

within the decision-making process, which is primarily utilized to realize

efective promoting goals (Pribadi and Rivai 2020).

Subsequently, to attain consumer satisfaction and progress corporate

picture, the corporate marketing technique will center on all sorts of CSR-
 COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

MARKETING MANAGEMENT DEPARTMENT 10

related public relations exercises or emotional marketing exercises. (Mukonza

and Swarts 2020)

Marketing strategy plays a significant part in increasing sales and profits

in businesses. It is an overall strategy for reaching out to prospective

customers and converting them into customers of their goods or services.

According to the study, from the perspective of corporate promotion, a

marketing strategy may be a possible resource method that integrates

openness and risk in the decision making process, particularly for

accomplishing successful promotional objectives. Furthermore, it is highly

significant to companies since it is a strategy used to market your products

and services to your target audience in order to satisfy them. Before you

begin a marketing plan, you must do market research. This research should

supply you with data that will be extremely useful in gaining insights into how

to determine the correct product to design, as well as keeping up with trends

and changes in the behavior of your target audience.

Consumer Behavior

Sohn and Ko (2021), contend that in spite of the fact that all motivation

buys can be considered as impromptu, not all spontaneous purchases can be

considered impulsive. Spontaneous purchases can happen, essentially since

the customer has to buy an item, but for anything reason has not been put on

the shopping list in progress. This recommends that spontaneous purchases

 COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

MARKETING MANAGEMENT DEPARTMENT 11

are not essentially went with by the pressing want that by and large

characterizes drive buys.

Customer behavior alludes to the exercises straightforwardly included in

getting items /services, so it incorporates the decision-making forms that go

before and succeed these activities. In this way, it shows up that the

publicizing message can cause a certain mental impact that propels people to

crave and, subsequently, purchase a certain product/service (Wertenbroch et

al., 2020). Wertenbroch, K., Schrift, R., Alba, J., Barasch, A., Bhattacharjee,

A., Giesler, M., et al. (2020). Autonomy in consumer choice. Market. Lett.

The impulse purchases emerge from tangible encounters (e.g., store

environment, item format), so buys made in physical stores tend to be more

rash than buys made online. This sort of shopping comes about from the

incitement of the five faculties and the web does not have this capacity, so

that online shopping can be less empowering of motivation buys than

shopping in physical stores (Moreira et al., 2017).

Consumer buying behavior refers to the actions (online and offline) that

consumers take before purchasing a product or service. This procedure might

include using search engines, responding to social media posts, or a variety

of other activities. Some article says that the decision processes and actions

of persons involved in the purchase and use of things are referred to as

purchasing behavior. Other study says that customer behavior implies

 COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

MARKETING MANAGEMENT DEPARTMENT 12

exercises that are directly involved in acquiring items or services, so it

includes the form of decision-making that precedes and follows these

activities.

Word of Mouth (WOM)

To this conclusion, the survey found that, in keeping with various studies,

WOM is both the most seasoned medium for sharing suppositions

approximately items or administrations and the one most likely to impact

buyer behavior, due to the tall unwavering quality and validity transmitted by

family and companions. In differentiate, few thinks about have inspected the

interaction between seen chance and eWOM source validity (Hussain et al.,

2017).

Therefore, repeated buying and word of mouth proposals gotten to be

an important index to measure customer loyalty (Zhang 2019).

It has been proposed that WOM can serve as one of the foremost solid

ways for clients to pick up product-related data and make product-adoption

choices (Ameri et al., 2019; Paley et al., 2019).

Today’s unused frame of online WOM communication is known as

electronic word-of-mouth or eWOM (Yang, 2017). This shape of

communication has taken on uncommon significance with the rise of online

 COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

MARKETING MANAGEMENT DEPARTMENT 13

stages, which have made it one of the foremost influential information sources

on the Internet (Abubakar and Ilkan, 2016).

Because of the high consistent quality and validity communicated by

relatives and friends, word of mouth is both the most experienced media for

communicating suppositions about products or administrations and the one

most likely to influence customer behavior. According to the study's findings,

the world of mouth occurs when a consumer's enthusiasm in a company's

product or service is mirrored in their everyday conversations. It occurs when

customers discuss a company's products or services with their friends,

families, and other people with whom they have a close relationship. Word-of-

mouth marketing is one of the most effective ways of promotion since 92% of

consumers prefer to get information from their peers over formal media

(Hayes, 2021).

Consumer Loyalty

Consumers pay increasingly consideration to corporate social

responsibility (CSR) in environment and item safety (Ge 2018).The research

writing on the relationship between client dependability and CSR is wealthy,

and most of them accept that CSR incorporates a signifcant impact on client

devotion (Osakwe and Yusuf 2020). Customer loyalty could be a steady and

lasting relationship (Singh and Sirdeshmukh 2000). Particularly when

enterprises are faced with the outside unfavorable environment such as

 COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

MARKETING MANAGEMENT DEPARTMENT 14

buyer’s market, free client relationship and expanded competitive weight,

client loyalty will appear a critical strategic position (Srivastava and Rai 2018).

Study the guide of customer loyalty, take reputation and believe as

mediator factors, and fnd that CSR has a positive effect on client loyalty.

Osakwe and Yusuf (2020).

The perceived value energizes them to reuse the news media stage

within the future, activating a positive response to word of mouth and as a

result, which plays a vital part in client dependability (Ebrahimi et al., 2020).

Hence, dependability in both terms is imperative for market information

improvement and the exercises of the commerce. Client esteem co-creation

gives openings to construct connections that offer assistance cultivate

devotion and decrease the potential for clients to conclusion their relationship

with the company (Emami et al, 2021; Revilla-Camacho et al., 2015).

A loyal customer decreases the taken a toll of drawing in and serving an

unused client, contributing to a genuine competitive advantage (Cossío-Silva

et al., 2016). Customer value co-creation not as it were leads to changes in

development and recognizing customer needs, but moreover it increments

the level of client dependability and fulfillment (Moise et al., 2020). Moise et

al. (2020) investigated the associations between esteem co-creation and

customers' believe, dependability, and fulfillment. The comes about

uncovered that client cooperation within the esteem co-creation prepare

 COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

MARKETING MANAGEMENT DEPARTMENT 15

emphatically influenced these three variables. Moreover, believe and

fulfillment were emphatically connected with client dependability.

When a consumer is committed to a certain brand, they are not readily

swayed by availability or cost. They are prepared to spend more as long as

they receive the same high-quality product or service that they are

accustomed to and enjoy. It is the outcome of a business's customer

happiness, great customer experiences, and the total value of the goods or

services it provides. These study says that a loyal customer reduces the cost

of attracting and serving a new client, resulting in a significant competitive

advantage. To keep customers purchasing and promoting their brand to new

audiences, all firms should seek to enhance customer loyalty.

Marketing Communucation

In company operations, marketing communication incorporates a

exceptionally vital part. In an organization or company, marketing

communication has the part of giving information, persuading, and reminding

buyers specifically or by implication approximately the items and brands sold.

Marketing communication performs numerous capacities to customers or

target markets, particularly to advise and appear almost how and why the

item is utilized, who the target advertise is, as well as where and when the

item can be gotten. The marketing communication environment by the

advancement of communication prepare innovation has also changed, as has

 COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

MARKETING MANAGEMENT DEPARTMENT 16

been the case with the later rise in inner advancement. The presence of the

Web has an effect on showcasing tourism (Gonca Guzel Sahin 2018; Tembi

Maloney Tichaawa, Oswald Mhlanga 2017). Appropriately, it moreover

influences the shoppers in obtaining data almost a item. The more particular

consider concluded that social media determine and impact shopper choices

in buying an item or service (Icoz, Kutuk, and Icoz 2018).

Marketing communication is unmistakable communication in a business

environment. This communication agreeing to (Blakeman, 2015). Interlinks

the seller and buyer, i.e. the sender and the beneficiary of the communication.

Based on the study we found marketing communication in an

organization or corporation consists of providing information, influencing, and

informing buyers expressly or by implication about the products and brands

marketed. On the other hand, in a business setting, marketing communication

is recognizable communication. Marketing communications (marcom) refers

to the messaging and channels that marketers use to communicate with their

target markets. In other words, Marketing Communication refers to the

various mediums that a company uses to convey information about their

goods and services with their customers.

COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

MARKETING MANAGEMENT DEPARTMENT 17