The effect of Digital marketing on consumer's Behavior and Business

Performance

This Research Is Presented to

SANTA INES- SENIOR HIGH SCHOOL

MISAMIS ORIENTAL

Practical Research II

By:

Benjie R. Lacapag
 INTRODUCTION

In the digital age, where information is readily accessible at one's fingertips and online
commerce has become an integral part of daily life, the world of marketing has
undergone a profound transformation. Traditional marketing methods have been
eclipsed by the dynamic and ever-evolving realm of digital marketing. This marketers
and businesses grappling with the challenges and opportunities that this digital
landscape presents. This research paper embarks on an exploration of the profound
impact of digital marketing on two critical facets of the business landscape: consumer
behavior and business performance.

The advent of digital marketing has redefined how consumers interact with brands and
products. The traditional model of passive advertising has given way to a more
interactive and engaging approach. Through social media, email marketing, search
engine optimization, and various other digital channels, consumers are now not merely
recipients of marketing messages but active participants in brand conversations. This
has, in turn, reshaped their behavior, expectations, and preferences. Consequently, it is
imperative to delve deeper into how digital marketing initiatives affect consumer
behavior.

Furthermore, businesses worldwide are recognizing the immense potential of digital

marketing in enhancing their performance. The ability to reach a global audience, gather
precise data, and tailor marketing efforts to specific demographics has revolutionized
business strategies. As a result, understanding the relationship between digital
marketing investments and business outcomes becomes pivotal for companies seeking
to thrive in this hyper-competitive landscape

To navigate this journey, the paper is structured as follows. The subsequent section will
provide an overview of the historical evolution of digital marketing and its current
significance in the global marketplace. Following , the paper will delve into the intricate
relationship between digital marketing and consumer behavior, exploring how various
digital tools and strategies impact consumer decision-making processes, brand loyalty,
and engagement. Subsequently, the focus will shift to the business realm, analyzing the
ways in which digital marketing investments translate into tangible business
performance indicators such as revenue growth, market share, and profitability.
 THEORETICAL FRAMEWORK

According to chaffey, Ellis-Chadwick, Mayer and Johston, Associated to digital

marketing are several tangible and intangible benefits. The authors consider tangible
benefits to increase sales of new sales opportunities resulting in increased revenue
from new customers, new markets, and existing customers (repeat sales or cross
selling) cost reduction due to reduced time for customer service, online sales and
reduced costs of printing and distribution of marketing communications. With respect to
intangible benefits, these are presented as the communication of corporate image
enhancement/improvement of the brand marketing communications now faster and
more responsive (including public relations) improve customer service improved
learning for the future; the meeting of customers’ expectations for having a website;
identifying of new partners and better support for existing partners; better management
of marketing information and information about the customer; more customer feedback
on products. Marketing is very important for the creation of companies, especially as
they face environmental challenges, such as the rapid evolution of technology,
globalization and increasingly more sophisticated competitors. As such, they need to be
able to identify and pursue market opportunities, adapting to a dynamic environment,
despite the limited financial and human resources that they possess and the set-back of
a limited market and small customer base. The main tool to take advantage of these
opportunities, currently, is clearly the Internet – where companies promote their
products/services to a global target audience, reaching large masses at a greatly
reduced cost. For this reason it is mandatory to give maximum attention to digital
marketing to obtain the maximum competitive advantage that this medium provides to
companies. Marketing professionals are required to constantly update their knowledge
and to constantly search for information, because this sector is always undergoing
constant change.
 CONCEPTUAL FRAMEWORK

This concept of the research study is based on the effect of digital marketing on
consumer's behavior and business performance

DIGITAL MARKETING CONSUMERS BEHAVIOR AND

BUSINESS PERFORMANCE
•Social media advertising
• Ultimately, effective digital marketing can
•google ads improve a business's performance by
•Content creation increasing sales, brand awareness, and
customer engagement. However, it's
•email marketing essential to manage costs wisely to ensure
a positive return on investment (ROI).
•Seo Services

•Agency Fees

Figure 1. Schematic Diagram

Figure 1. presents the conceptual framework of the research study.

The cost of digital marketing refers to the money a business spends on online
advertising and promotional activities. This includes expenses for things like social
media ads, Google Ad Words, and hiring digital marketing experts.

Consumer behavior is how people act when making buying decisions online. It's
influenced by factors like product reviews, social media trends, and online shopping
convenience. The effect of digital marketing on consumer behavior can be significant.
Well-targeted digital marketing can influence consumers to make purchases, share
positive reviews, and engage with a brand. the specific costs will depend on your
business's size, industry, and objectives. It's essential to create a comprehensive
budget that considers all these elements to maximize the effectiveness of your digital
marketing efforts.
 STATEMENT OF THE PROBLEM

This study aims to observe the multifaceted relationship between Digital marketing,
Consumer behavior and business performance outcomes to provide valuable insights
for marketers and business seeking to optimize their online marketing strategies.

RESEARCH QUESTIONS

Q1.

What are the impact of digital marketing on consumers behavior and business
performance?

Q2.

Is there significant correlation of digital marketing on consumers behavior?

Q3.

Is there significant relationship between digital marketing and business performance?

HYPOTHESIS

RESEARCH QUESTIONS:

WHAT ARE THE IMPACT OF DIGITAL MARKETING ON CONSUMER'S BEHAVIOR

AND BUSINESS PERFORMANCE?

NULL HYPOTHESIS

HO: Digital marketing has no impact on consumer's behavior and business

performance.

ALTERNATIVE HYPOTHESIS

HI: Digital marketing has a significant impact on consumer's behavior and positively
effects business performance.

IS THERE SIGNIFICANT CORRELATION OF DIGITAK MARKETING ON

CONSUMER'S BEHAVIOR?

NULL HYPOTHESIS
 HO: There is no significant correlation between digital marketing and consumer's
behavior.

ALTERNATIVE HYPOTHESIS

HI: There is a significant correlation between digital marketing and consumer's behavior.

IS THERE SIGNIFICANT RELATIONSHIP BETWEEN DIGITAL MARKETING AND

BUSINESS PERFORMANCE?

NULL HYPOTHESIS

HO: There is no significant relationship between digital marketing and business

performance.

ALTERNATIVE HYPOTHESIS

HI: There is a significant relationship between digital marketing and business

performance.

SIGNIFICANCE OF THE STUDY

This research study will be beneficial to the following:

Business: Businesses of all sizes benefit significantly from this research as it helps
them refine their digital marketing strategies. It enables them to attract, engage, and
retain customers more effectively, leading to increased sales, revenue, and profitability.

Marketing: Marketing professionals gain valuable insights from these studies to make
data-driven decisions, optimize campaigns, and implement innovative digital marketing
techniques. It enhances their ability to create successful marketing strategies.

Consumers: Consumers benefit from improved digital marketing practices that result
from this research. They receive more relevant and personalized content, better user
experiences, and access to products and services that match their preferences and
needs.

Investors:Investors in technology and marketing-related industries can make more

informed investment decisions based on their understanding of how digital marketing
influences business performance.
 SCOPE AND LIMITATION

Scope

This study will look at how digital marketing affects the way people buy things and how
businesses do. We will focus on things like social media ads, emails, and online ads to
see how they make people buy products and interact with brands.

Limitation: But there are some things we can't do in this study

Only One Place: We'll mainly study one area or market, so our findings might not work
for everywhere in the world.

Data Limits: We'll use data that's already available, which might not be perfect.

Some Businesses Only: We might mainly look at certain types of businesses, which
might not apply to all kinds of companies.

Other Things Matter: There are other things like the economy and new technology that
can also change how people buy and how businesses do, but we won't focus on those
too much.

Short Time: We won't be able to see how digital marketing affects things in the long,
long term, because we're looking at a short time frame.

Can't Prove Everything: We can show if things are related, but we can't say for sure
that digital marketing causes everything to happen.

This study will help us understand how digital marketing affects people and businesses
in some ways, but there are limits.
 DEFINITION OF TERMS

BEHAVIOR- Refers to actions or reactions displayed by individuals, organisms, or

systems in response to stimuli or situations.

BUSINESSES- Are organizations or entities engaged in commercial, industrial, or

professional activities with the primary goal of producing goods, providing services, and
generating profit. They can take various forms, including sole proprietorships,
partnerships, corporations, and more, and operate in diverse industries to meet the
needs and demands of customers or clients while aiming for financial success.

CONSUMERS- Are individuals or entities that purchase and use goods or services for
personal or business purposes.

CUSTOMERS- Are individuals or entities that buy products or services from a business
in exchange for payment.

PROMOTING- Means actively encouraging, supporting, or advertising a product,

service, idea, or cause to raise awareness, attract attention, and stimulate interest or
action.

PRODUCTS- Are tangible or intangible items or services created, manufactured, or

provided to meet a need or want of consumers, typically for sale or exchange in the
marketplace.

RELATIONSHIP- Is a connection, association, or bond between individuals, groups, or

things, often characterized by emotional, social, or functional interactions.

SOCIAL MEDIA- Refers to online platforms and websites that enable users to create,
share, and interact with content, as well as connect with others, fostering digital
communication and community-building.

TECHNOLOGY- Refers to the application of scientific knowledge, tools, and

techniques to create, modify, or enhance processes, products, or systems for practical
purposes.