Assessment of Market and Positioning of Company
Question:
How Internet is Influencing the Purchasing Behavior of the Customers: A Case Study of Woolworths.
For every big business organization the customers plays the most pivotal role. In the present situation, it has been found that the different big business organizations are using dissimilar types of tactics and strategies to retain the loyal customers in the marketplace (Baker and Parkinson 2016). With the progression of technology, the competition has immensely raised in between different retail companies of Australia. Therefore, it has become much hard-hitting for the business organizations to retain the loyal customers in the market. In the present market scenario, the customers are easily switching from one brand to the other brand in the market (Chebat et al. 2014).
In the current scenario, the internet plays the most significant role in the individual’s life. The people are much addicted towards internet for doing their daily activities. Therefore, most of the business organizations are using internet for reaching the targeted customers in the market. Internet is considered as one of the fastest medium for getting large targeted regulars in the marketplace.
Hakansson (2014) commented that before developing the big business in the marketplace, the business organization needs to assess the market and the positioning of the company in the market. As per the assessment, the business organist ion needs to effective strategies and medium to influence and encourage the purchasing behavior of the consumers in the marketplace. Goh et al. (2013) put forward that through this effective approach, the business association can easily enhance the market share, sales and customer rate in the market.
In this particular study, the researcher has mainly chosen Woolworths. Woolworths mainly operates a big supermarket chain in Australia. The company mainly sells vegetables, packaged food and daily use products in the market. The company has got almost 980 stores in Australia. The main competitors of the company are METCASH LIMITED AND WESFARMERS LIMITED.
Here the researcher will mainly focus on how the business organization is using internet for reaching a large targeted customers in the marketplace. Additionally, the study will also focus on how internet influences targeted regulars purchasing behavior in the market. Here the researcher will discuss various model and theories for analyzing the study in a detail way. On the other different methods will be used for collecting authentic data and information for the study.
2.1.1 Introduction:
In this section, the researcher will mainly focus on the preceding studies done by the other scholars in this particular topic. By analyzing the previous studies, the researcher can easily get full understanding of the research topic. This section will mainly focus on the concept of internet marketing and the effectiveness of internet marketing on customer purchasing behavior. On the other hand, the researcher will also discuss on model related to customer purchasing behavior.
With the advancement of technology, the conventional way of advertising has been washed out away with time (East et al. 2013). Internet is always being considered as one of the effective mediums for getting the targeted buyers in the market. In the present scenario, most of the business organizations are much depended on internet marketing for reaching the buyers in the marketplace. Mostly importantly, through internet marketing, the business organization can easily influences the purchasing activities of the regulars in the marketplace. Additionally, it has been found that presently none of the retail business organization uses traditional method for promoting the goods and services in the marketplace. On the other hand, it has been also found that sometimes the big business organization influences the purchasing behavior of the customers by involving the individuals in several online activities and contest.
Previous Studies
By implementing unique strategies the business organizations performs the internet marketing to grab the attention of the customers in the market (Bianchi and Andrews 2012). This will help the organization to influence the buying nature of the buyers in the marketplace. This approach directly helps the corporation to amplify the sales as well as the customer velocity of the company. Moreover, it helps the company to gain some additional benefit in the market.
The internet marketing has become much famous in the recent day. Within a short span of time, the business organization has found that the alternative choice and preferences of the buyers are drastically shifting in the marketplace (Kim et al. 2013). Through effective internet market, the business organization also can enhance the value of the product and services in the market. On the other hand, it has been found that the usage of internet has been rapidly increasing among the consumers in the market. In order to grab the attention of the targeted customers in the market the big business organization has mainly focused on the internet marketing (Manning et al. 2015). There is not any particular way of promoting the products and services through internet marketing. Here the big business organizations are free to encourage the purchasing behavior of the regulars in the market.
Presently, different retail organizations are using email marketing and social media marketing for influencing the purchasing behavior of the customers in the market. By internet, marketing the business organizations mainly provides every kind of details regarding the product and services of the company (Kim et al. 2012). Additionally, internet also provides the benefits of the product to the customers. Through continuous pop up advertisements, the business organization tries to capture the mind of the customers in the market.
On the other hand, it has been found that companies like Tesco, ASDA, Sainsbury uses internet, for influencing the purchasing decision of the targeted customers in the market. The internet has helped the companies to drastically grow and develop itself in the market. The buying process of the customers is solely dependent on the perception of the customer regarding that product and services. The company needs to use such unique strategies, so that the customer can easily distinguish one particular product from the other existing similar product in the market.
Nguyen et al. (2012) argued that in the present scenario, it has been found that the customers easily are influenced by the advertisement or the promotional activities of the company. By performing effective internet market, the business organization can easily give tough competition to the other existing retail business organization in Australia. Ryan (2014) argued that before using internet for marketing, the business organization needs to assess the market and its targeted customer. As per the analysis, the company needs to incorporate new strategies in the organization. By influencing the purchasing decision of the customers, the business organization can easily increase its sales rate in the marketplace. On the other hand, it’s also helps the big business organization to amplify the brand awareness in the market.
Methods for Collecting Data and Information
AIDA:
In order to grab the attention and influence the purchasing behavior of the customers, the business organizations needs to focus needs to incorporate the AIDA model in the organization. By using this effective model, the business organization can directly encourage the decision of the consumers during the purchase of the particular manufactured goods and services in the market (Solomon 2014). The AIDA mainly stands for Attention, Interest, Desire, and Action.
By using effective strategies, the big business organization mainly tries to grasp the interest and influence the purchasing behavior of the customers in the market. On the other hand, by giving attractive content of the product and services, the company mainly captures the mind of the buyers in the marketplace (Sousa and Voss 2012). In this way, the company mainly grows the desire of the customers in the competitive market. Internet influences the desire level in such a way, that the customers take effective action while purchasing the goods from the market. Compared to the other existing goods, the customer purchases that particular product from the market.
Research question for the study:
- What is the effectiveness of internet marketing in influencing customers purchasing behavior?
- What kind of internet activities performed by Woolworths for influencing customer behavior?
- What kind of challenges and barriers faced by Woolworths in performing internet marketing?
- What are the strategies incorporated by Woolworths to overcome the challenges in the market?
- What are the suitable recommendations suggested to Woolworth for influencing customer-purchasing behavior in future?
In order to conduct study in an effective way, the researcher is going to use various tools and methods for collecting authentic information and data for the study. As per the nature of the study, the researcher needs to select the suitable methods for the study. There are several types of research methods namely research philosophies, approaches, strategies, and time horizon.
Gantt chart for the research proposal:
Part 1:
Part 2:
Research philosophies are namely of three types positivism, realism and Interpretivism. For this study, the researcher is going to use positivism. This will help the researcher to study the research in a logical way. There are principally two types of research approaches, namely inductive and deductive (Taylor et al. 2015). For this exacting study, the researcher is going to focus on the deductive research approach.
In order to study this research topic in a detailed way, the researcher will mainly going to focus on deductive research approaches. This will help the researcher to focus on the accessible models and theories related to the research subject matter. On the other hand, there are generally three types of research design namely explanatory, exploratory and descriptive (Panneerselvam 2014). For this study the will mainly focus on descriptive design. Descriptive design helps to analyze the research topic in depth. In addition, as the research strategies the researcher will mainly focus on the interview procedure and survey questionnaire method. However, this particular research type is Qualitative as the data and information’s are being collected from the primary sources.
The researcher will mainly take interview of the managers and also going to take survey of the customers of the company (Woolworths). Here the researcher is going to collect 50 samples from the customers and also going to interpret their view points through graphical analysis. Additionally, through interview procedure, the researcher is going take the interview of the managers of the company.
Influence of Internet Marketing on Customer Purchasing Behavior
For conducting this particular research study, the researcher has mainly collected several authentic data and information from various authentic sources. In order to conduct this study the researcher has mainly chosen both the data collection method, primary as well as secondary. For collecting the primary data, the researcher will mainly collect the data through survey questionnaire method (customer’s feedback) and from viewpoints of the managers of the company through the interview method (Pickard 2012). On the other hand, in order to collect the secondary data the researcher needs to mainly depend upon the available sources like authentic journals, related articles and different suitable website. By using this effective source, the business organization needs to use the available resources in the right way.
In order to analyze the data for the study, the researcher is going to use both the quantitative and qualitative analysis method, for analyzing the data and information, which are being collected from the primary sources and the secondary sources. Moreover, the analysis will be presented through tables and graphical representation. This will make the study more authentic and understandable.
Regression is considered as one of the effective tool for estimating the relationship between the variables. Several effective methods and techniques are being used in order to track the relationship. Through this particular research study, the researcher will mainly find out the relationship in two variables that is customers and internet. Here customers are dependent variable and internet is independent variable. This study will mainly focus on how the customers purchasing behavior are being influenced by internet advertisement or promotions. Regression analysis will also help to assess the value of the dependent variable in case of the varied independent variable in the study.
From the literature review section, the researcher has found that presently most of the business organizations are using internet as the effective medium for influencing the purchasing performance of the consumers in the marketplace. It found has been found that companies like Tesco, ASDA, and Sainsbury uses internet for reaching the targeted customers and cheering the purchasing activities of the regulars in the marketplace.
Additionally, in the literature review section, the researcher has also found that how internet is improvising the sales rate and the market share of the company in the competitive market. Thus, it is expected that from this particular study, the researcher can expect that effective internet marketing will help Woolworths, to manipulate the purchasing actions of the regulars in the market. On the other researcher is also expect, that it will also help the company to improve its marketing position in the market.
Reference list:
Baker, M.J. and Parkinson, S.T., 2016. Organizational buying behaviour: purchasing and marketing management implications. Springer.
Bianchi, C. and Andrews, L., 2012. Risk, trust, and consumer online purchasing behaviour: a Chilean perspective. International Marketing Review,29(3), pp.253-275.
Chebat, J.C., Michon, R., Haj-Salem, N. and Oliveira, S., 2014. The effects of mall renovation on shopping values, satisfaction and spending behaviour.Journal of Retailing and Consumer Services, 21(4), pp.610-618.
East, R., Wright, M. and Vanhuele, M., 2013. Consumer behaviour: applications in marketing. Sage.
Goh, K.Y., Heng, C.S. and Lin, Z., 2013. Social media brand community and consumer behavior: Quantifying the relative impact of user-and marketer-generated content. Information Systems Research, 24(1), pp.88-107.
Hakansson, H., 2014. Corporate Technological Behaviour (Routledge Revivals): Co-opertation and Networks. Routledge.
Kim, C., Galliers, R.D., Shin, N., Ryoo, J.H. and Kim, J., 2012. Factors influencing Internet shopping value and customer repurchase intention.Electronic Commerce Research and Applications, 11(4), pp.374-387.
Kim, H.W., Xu, Y. and Gupta, S., 2012. Which is more important in Internet shopping, perceived price or trust?. Electronic Commerce Research and Applications, 11(3), pp.241-252.
Manning, G.L., Ahearne, M., Reece, B. and MacKenzie, H.H., 2015. Selling today: Creating customer value. Pearson Canada.Nguyen, N., Leclerc, A. and LeBlanc, G., 2013. The mediating role of customer trust on customer loyalty. Journal of service science and management, 6(1), p.96.
- Pappas, I., G. Pateli, A., N. Giannakos, M. and Chrissikopoulos, V., 2014. Moderating effects of online shopping experience on customer satisfaction and repurchase intentions.International Journal of Retail & Distribution Management,42(3), pp.187-204.
Panneerselvam, R., 2014. Research methodology. PHI Learning Pvt. Ltd..
Pickard, A., 2012. Research methods in information. Facet publishing.
Ryan, D., 2014. Understanding digital marketing: marketing strategies for engaging the digital generation. Kogan Page Publishers
Solomon, M.R., 2014. Consumer behavior: buying, having, and being. Engelwood Cliffs, NJ: Prentice Hall.
Sousa, R. and Voss, C., 2012. The impacts of e-service quality on customer behaviour in multi-channel e-services. Total Quality Management & Business Excellence, 23(7-8), pp.789-806.
Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A guidebook and resource. John Wiley & Sons.
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