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COMPARATIVE ANALYSIS OF ONLINE MARKETING VS TRADITIONAL

MARKETING

A Thesis

Presented to the Faculty of College of Business and Management

DE LA SALLE ARANETA UNIVERSITY

Victoneta Ave., Malabon City, Metro Manila

In partial fulfillment of the requirements for the degree of

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION MAJOR IN MARKETING

MANAGEMENT

by

February 2018
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Table of Contents

TITLE..............................................................................................................

APPROVAL SHEET......................................................................................

ACKNOWLEDGEMENT..............................................................................

ABSTRACT.....................................................................................................

TABLE OF CONTENTS

Chapter

1 The Problem and a Review of Related Literature

Introduction

Review of Related Literature………..............................................

Theoretical Framework..........................................................……...

Conceptual Framework......................................................................

Statement of the Problem...................................................................

Hypothesis..........................................................................................

Scope and Delimitation of the Study.................................................

Significance of the Study...................................................................

Definition of Terms............................................................................
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2 Method

Research Locale.................................................................................

Research Design.............................................................................

Respondents of the Study...................................................................

Research Instrument...........................................................................

Data Gathering Procedure..................................................................

Sampling Technique..........................................................................

Statistical Treatment of Data............................................................

Statistical Tools……………………………………..…...…....... .

3 Results and Discussion

4 Summary, Conclusion and Recommendations

Summary of Finding ...................................................................

Conclusion ..................................................................................

Recommendation ........................................................................

REFERENCES ............................................................................................

APPENDICES .............................................................................................

CURRICULUM VITAE ..............................................................................

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CHAPTER 1

THE PROBLEM AND A REVIEW OF LITERATURE

Introduction

Social media is popular trend today, especially among college students. Business

are always looking for new ways to reach customers, especially ones readying to enter

the work force. This study examines the impact of social media on the buying habits of

college students.

Several past research studies have focused on the effects of electronic-word-of-

mouth communication on consumer behavior. Hu, Liu, and Zhang (2008) discovered a

positive relationship between products with good online reviews and the sales of that

product. The more a reviewer was exposed to the product and the more credibility the

reviewer had the more influential and the individual’s feedback became. This word-of-

mouth communication had an impact to the potential buyer’s decision.

This research explored why consumers partake in electronic word-of-mouth

communication. A sense of belonging, potential payment, and a desire to aid others are a

few of the reasons they discovered.

In trying to understand how vital the internet is to those who have access to it,

trying asking these generation not to use the internet for at least twenty four hours. In

present day, if you have internet access things materialize in different way the internet or

social media simplifies and quickens communication than ever before. Nowadays with
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the help of the internet, one can be able to find persons, product or yet still a place ahead

of meeting them, buying the product or visiting the place.

Customer satisfaction or unsatisfactory can be a discussion online and people who

have used the same product can give their experiences. If an individual is looking for the

same product, this is also a first way of giving feedback to the manufacturers as the

product. If the customers are unsatisfied manufacturers can work on making the product

better.

Other research has focused on the role of social media. Smock, Ellison, Lampe

and Wohn (2011) analyzed the reason people use Facebook through the uses and

gratification model. Among the reasons they found were for social interaction,

professional advancement, and entertainment. The purpose of this study is to analyze the

impact of social media particularly Facebook on students.

This Thesis also examines of the role of social media on consumption pattern

differs between genders. For example “are more males and females more likely to use

promotions offered by companies they have befriended or follow?” The final research

questions seeks to determine whether or not recommendation made via social media

platforms have varying impact based on usage frequency. This research questions analyze

the number of times student check their social media accounts and the frequency they use

the promotions offered.

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Review of Related Literature

-It consist of review of related literature with online marketing versus traditional

marketing on consumers.

 Typical internet usage history and intensity also affect online shopping potential.

Consumers with longer histories of internet usage, educated and equipped with

better kills for perceptions of web environment have significantly higher

intensities of online shopping experiences and are better candidates to be captured

in the well-known concept of flow in the cyber world. (SISK 2000; Hoffman and

Novak, 1996)

 Those consumers using the internet for the longer time from various location and

for higher variety of services are considered to be more active users.

(Emmanouilides and Hammond, 2000)

 The Online Purchasing Process – many studies mentioned that there is a vast

amount of window shopping taking place online but the member of the rate of

surfers who turn into purchasers or regular buyers are very low. (Mayer, 2002;

Betts, 2001; Oliver; 1999)

 The researchers found that consumers also considered review quality and

reviewer exposure when evaluating an online review (Hu et al, 2008). Managers

who are seek to improve the word-of-mouth communication would be better

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served by targeting the influential reviewers, as the reviews will be given greater

consideration (Hu et al 2008)

 Social media focused on understanding the characteristics of individuals who used

this communications.

 In (2009, Ross, Orr, Sisic, Arsenault, Simmering) explored the personalities and

motivations of individuals who used the social media site Facebook. To this

extent knowing Facebook on online selling applied the five factor model to this

sites usage. They found that individuals who exhibited higher levels of

extroversion were more likely to belong of FB groups, however, this personality

trait was not associated with having a large number of friends.

 In (2004 Hennig-Thurau, Gwinner, Walsh and Gremler) after understanding the

characteristics associated with social media users, defined motivations to explain

why consumers engage in electronic word-of-mouth communications and

consumers surveyed to examine these motivations. Based on the results 3

motivations were discovered: social benefits, economic benefits, self –

enhancement (Hennig – Thurau et al. 2004)

 Social benefits refers to the idea that consumes gain a sense of belonging from

participating in an online community, whereas economic factors refers to any

payment a reviewer may receive.