Journal for Studies in Management and Planning e-ISSN: 2395-0463

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December 2015

Impact of Internet -marketing on Consumers

Vikram Singh
Assistant Professor in Management Gian Jyoti School of Management Shambhu Kalan (Banur)
Email:Vikram2world3060@gmail.com

Abstract
Internet marketing is the continous growing
field of todays scenario which offers to buy
innumerous variety goods and services from
online stores. This paper explores the effect of
the Internet marketing in our livelihood. The
increased number of consumers and the high
demand for the products and services leads to
enhancement in competition too. This paper
analyse the consumers purchase attitude
towards the internet- marketing and
advertisements. The latest technologies and
advancements make the internet marketing
more popular among the people. And without
spending of much more time and cost anyone
can buy and sell large number of commodities
on various websites.The research is done to
find out the essential things that affect the
consumers behaviour while doing the online
purchasing through advertisements. The
consumer protection law is also established by
the government for ensuring the consumer
rights and fair trade activities between the
customers and the various business premises.
Keywords: Consumers, Internet, E-
marketing, Consumer law.
Introduction about Internet
The internet emerged with the US government
project in 1970.The purpose was to develop
some system of communication that would
link researchers all over the world and allow
them to access and excange of information. In
1989 World Wide Web (www) was developed
which makes possible for its users to share a
complete communication.
The two computer science doctrol students of
Stanford University met namely Larry Page
and Sergey Brin who developed the formula
that that would order the results of a data
search by relevency. In 1998, Page and Brin
presented their findings at the world wide
conference. One year later, after they raised
$30 million in funding, they launched Google
(http:/www.google.com).
The internet changes the thinking of people
towards the purchases of goods and services.
Over the past decades the usage of internet
products increased rapidly.Internet marketing
or online marketing connects the advertisers
and promotors with the large pool of
customers for smooth functioning for the
people having different level of income, status,
gender and ages. Internet marketing is done by
showing the variety of images, text, logos,
photographs and animations upon the
websites. The growth of internet leads to
enhance the attraction of the advertisors and
promotors.

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Marketing products on the Internet costs less
than marketing them through a physical retail
outlet.The internet helps the consumers to buy
variety of products online in a single place. It
will save the Time and cost of both consumers
and as well as sellers. Internet marketing is
also known as the wireless marketing by
electonic mails. The Internet provides an
important platform for building relationships
with customers and increasing customer
retention levels.The internet sales further
increased when the consumer feel secured and
riskless purchases. The government also made
the consumer protection act 1986 in the
parliament of India for protecting the interest
of the consumers which helps the customers
for the reduction of various uncertanities and
misleadings done by the sellers online. It will
further enhance the interest of the consumers
to make better coordination with the sellers for
future purchases when they feel confident to
buy the products through internet. Internet
auction is a basically two tier process- firstly,
when the third party is included for the sale of
large amount of products of the various
organizations like snapdeal, flipkart, e-Bay,
Amazon.com and the secondly when the seller
creates their own auction through its own
company websites. And buyers can buy the
24-hours and seven days in a week from
internet which is not possible in physical
purchases.
History of Internet Marketing
The history of Internet as a marketing
channel started back in 1983 when
Compuserve launched the
first commercial Internet email product.
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Internet messaging had previously been
available only to the military and universities.
A decade later, a browser for Tim Berners
Lees hypertext protocol became available as a
free download from the National Center for
Supercomputing Applications. Mosaic, as the
browser was called, was soon followed by a
more household name, the Netscape
Navigator. Very few people and companies
thought the web would have any impact on
their ability to sell goods and services. Jeff
Bezos launched Amazon.com in 1995, most
business analysts thought it would flop as
consumer would never use their credit card
online. The next watershed moment in Internet
history was Google Adwords, launched in
2003. Google wasnt first search engine, but it
was the first to offer a system whereby
advertisers could serve ads in response
to users real-time intent and desires.
In 2007 the rules changed again. Mobile
content consumption, previously tightly
controlled by the carriers (at least in the US),
was suddenly controlled by a device
manufacturer as Apple launched the iPhone.
The most radical and impactful marketing
innovation yet is the Open Graph, a Facebook
technology launched in April 2010.
Bristol-Myers Squibb (Drug Company) was
the first company that officially launched an
online market product namely "Excedrin" for
the public awareness about the drugs.
According to Linda Himelstein of Business
Week, the promotion of Excedrin world wide
online leads to enhance the reputation of the
Bristol-Myres Squibb. Standardized
technology industries such as Microsoft and
IBM began to incorporate their internet
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provider and several software programs in the
Bristol Myres existing online Campaings. The
expenses used for internet marketing in the
US, Canada and other neighboring countries
totaled to 300 Billion Dollars in 1996. In 1994,
the average online marketing figure totaled to
175 Billion Dollars which were all spent for
traditional advertising campaigns in one
year.In the year 1997, the online advertising
industry's budget increased to $1 billion.
Literture Review
George N. Lodorfos, Tom A. Trosterud,
Chris Whitworth, (2006) in their research
titled E-consumers attitude and behaviour in
the online commodities market studied the
factors determining e-consumers re-purchasing
behaviour in the e-business to consumer
market. This study adopted a quantitative
methodological approach within the context of
the online CD, Books, music, magazines and
DVDs purchasing industry, surveying 211
consumers with prior purchasing experience in
this range of products.
Srivastava Priyanka (2012) studied impact
of online advertising on consumer behaviour
(with special reference to e-mails). Author
studied that the internet broadcast model is
what many major advertisers have been
waiting for. They want to make Internet
advertising more like television advertising.
The goal of advertisers is to make their ads
more involving. Interactive advertising
allows customers to become more involved
because they initiate most of the action. The
important trend is that web advertising is
moving away from the banner and
marketers are experimenting with new forms
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such as games and interactive product
demonstrations in such new forms as pop-
up windows, daughter windows and side
frames. Feedback is one the strengths of
Internet sites, and an effective site captures
information from visitors in a systematic
way that can be used in strategic planning.
Dr. Sanjay Hooda and Sandeep Aggarwal
(2012) in their study examines key consumer
behaviour attribute and relation among them in
E-marketing perspective. Attempt has been
made to study the acceptance rate of e-
marketing among the Jaipur consumers and its
impact on their purchase decision.
Dr. Ujwala Dange and Vinay Kumar (2012)
came with the research that the key factors
which affect buying motives of consumers for
online buying or E- shopping. One online
consumer buying behavior motive model,
(FFF Model), has been designed and
suggested.
S.Ramakrishnan (2013) also did a study on
online marketing is no longer an option; it is a
necessity. Still, thats not all bad news.
Planning your Internet marketing strategy does
not have to be a difficult task, particularly if
the competition doesnt fully understand that
the rules of Internet marketing are not the rules
of traditional marketing.
Norazah Mohd Suki, Norbayah Mohd Suki
(2013) in their research titled The Effect of
Internet Marketing Environment, Product
Characteristics, Familiarity and Confidence,
and Promotional Offer that Online shopping
enables consumers to search for information
and purchase products or services through
direct interaction with online store. This study
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aims to examine the effect of Internet Sources of Data Collecion

marketing environment, product
characteristics, familiarity and confidence, and
promotional offers on consumer online
shopping behavior.
Arjun Mittal (2013) studied that actuality of
internet shopping in the case of the India in
order to explain the development of internet
shopping and its impact on consumer behavior.
The future development of internet shopping
will be measured and deep comparison of
consumer behavior between different
countries. Consumer`s trust, privacy concerns,
security concerns are the major factors for
using internet for shopping, the trust on
websites influence to the purchasing decision
of any consumer.
Objectives of the study
1) To analyse the knowledge about internet
marketing among the people.
The data required for the study has been
collected from both primary as well as the
secondary sources. For the primary data
Questionnaire is formulated to get to the point
information and in the secondary data the
study presents the review of the academic
papers selected from a large pool of articles on
consumer behaviour in online environment.
Sample Size
The Research study has focussed on
consumers of above 18 years of age. This
research studies the psychology of the
consumers behaviour about the Internet
advertisements and online sale of products. A
total number of 100 respondents were
surveyed in Punjab at Rajpura and Patiala
Region.
Data Analysis

2) To know the psychological impact of
internet marketing on consumers.
3) To study the effect of internet marketing on
consumers purchase decisions.
The data is collected from the field work
including qualitatively and quantitatively
aspects. And the bipolar scaling method five-
points (Likert Scale) is used to analyse data.
Distribution of study samples according to the
research is as follows:

Table No: 1 Gender and Age Distribution

Variable Percentage

Male 68
Gender
Female 32
18-24 years 28
Age 25-34 years 39
35-50 years 25

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50 and Above 8

Table 1 represents the Gender and Age distribution of the respondents. In the study 100 people are
taken for filling the Questionnare out of which 68 are male and 32 are Female. The study is done
including different Age group of people 18 years to 50 years and above.The percentage of the
respondents Age group between 18-24 years is 28%, and the respondents having the age of 25-34 is
39% which is also maximum in all age groups, and the 35-50 years is 25% and the minimum
percentage of people are taken from the age group of 50 and above that is only 8%.

Table No: 2 Factors Influncing Purchase Decisions

S.No Question Matrix N Mean

1 It is easy to find information on websites 100 4.02

2 The Internet products charged fair Prices 100 4.03

3 High Quality products are available on Internet 100 3.3

4 Feeling safe while purchasing online products and services 100 3.42

5 Right products are deliverd through online purchases 100 4.15

6 Are you satisfied with Internet Purchasing 100 3.81

7 Online buying is better option than physical purchases 100 3.69

8 Buy more Internet products in the future. 100 4.11

In the Table 2, Five- point Likert Scale is used for measuring the observations of the Respondents.
The Research study includes the factors inflncing the purchase decision of the respondent. And the
format is of a typical five-level Likert item namely, strongly Agree, Agree, Neutral, Disagree and
Strongly Disagree. The scores are given to each item and the mean average of all the items is
calculated along with the 100 number of Respondents.

Figure1: Respondent Occupation

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4%
20% 32% students
working
Part Time Working
44% Non working

The research covers various types of respondents having different occupations.In the survey it is tried
to cover the maximum number of working people, because the earning people will take independent
decision to make purchases. So, 44 % of working professionals are taken into the account than after
the 32% of the students is reviewed in the research survey. 20% respondents doing part time jobs are
also considered and 4% Non-working respondents are also included in the study. So, the
miscellaneous types of views are collected to make the research more realistic and realiable.

Figure 2: Learinng about E-Marketing

13%
17%
41% Advertisements
29% E-mail & News Letter
In store Promotion
Others

It is found that the repondents come to know about the online products through various modes. In the
study it is observed that the 41% of people get knowledge about internet products and services
through Advertisements given by promoters, after that 29% of respondents received the information
with the mean of E-mails and News letters.In store promotions also play a great role in the

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development of E-Marketing products and the 17% respondents obtained the information from this
type of promoting activities while 13% were get awared with the others.

Figure 3: Reasons for using Internet

16%
32%
24% Gathering Information

28% Entertainment
Online Buying
Others

Respondents use Internet for many purposes because they find it is conveniet and benifical in many
terms for solving their numerous problems at a single place. The finding shows that the 32% are
browsing Internet for gathering information. While 28% of people surf it for the fun and
entertainment activities. And with the availibility of many online selling websites, 24% of
respondents fulfill their requiements with online shoppings. Moreover the 16 % are using internet for
other activities.

Figure 4: How often would you like to purchase online

8%
21% Weekly
Monthly
39% Quaterly
32% Yearly

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It is observed in the study that the 32%
respondents are occasional shoppers and they
visit the websites once in a month. Some 21%
of respondents say they are frequent shoppers
and going online at least once per week.The
maximum 39% are used to buy the products
quarterly basis. However 8% of respondents
are in the cateogary who are willing to do the
online shopping in a year.
Findings of the study
In the light of specified objective of research
study and above discussion along with the
analysis of the data collected it is found that
the Internet marketing is important tool
because it aligns with the way for consumers
to make purchasing decisions and the follwing
findings are revealed in the study:
Majority of the respondents are the
supporters of online marketing
products because they find large
variety of products in a single place. It
will save their time and money for
searching the different products in the
different shops.
From the study it was found that people
are highly motivated not only because
of cheap and discounted products but
also with the security puropses. The
online marketes used advanced
technology like 3D secure systems for
the safeguard of their customers.
The likert Scale is used in the study for
the measument of consumers positive
and negative response about the
internet based products and it was
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found the maximum number of positive
response is received and they are
highly satisfied with the right products
are delivered at right time with
reasonable prices as compare with the
physical retail stores.
According to the study the respondents
feel more comfort when the online
sellers provides the extra services like
E-mails, Voice Calls and online
feedbacks after the sale services.
And it was also observed that the
internet is not limted to the particular
age group of people. Now in the era of
advancement technology internet is
necessary like blood in the veins.
44% of working professionals are using
internet for the fullfillment of their
requiremrnts. And in the study it was
noticed that 32% of the youth is used
internet for various purposes. Some
partime workers and even non-working
respondents are using internet.
It also studies that the Advertisement
plays a huge role for providing
knowledge about the internet products
to the prospective customers. And 41%
of responts get the information through
classified ads.
In the study it was also found that the
respondents are using internet for doing
multiple tasks. 24% of them mostly
need it for online buying. Apart from
internet buying it is important for
gathering large amount of information,
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entertainment, communication and
social networking.
It is also revealed that online marketers
gives their products and services 24*7
which is also be the benifical tool for
them in selling activities ang gaining
customers retention.
Conclusion
From the research study it can clearly said that
the internet marketing plays a major role in the
pelt among the consumers. Many websites
offered them to avail large variety of products
at a single place with many discounted rates
and features.The Internet provides an
important platform for building relationships
with customers and increasing customer
retention levels by sending a follow-up email
to confirm the transaction and thank the
customer.Moreover there is no time restriction
on when a consumer can shop online; the
internet is available all day everyday with
latest products on the website they using. And
Instead of visiting retail stores one of the
greatest advantage of using internet is that
consumers can compare the prices of the
products with the other similar products.The
consumers can also share their greviences with
the organisation and also give their reviews
about the products and services.
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e-ISSN: 2395-0463
Volume 01 Issue 11
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