How internet marketing impact on Zara customer behaviour and company productivity
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Abstract
In the introduction chapter, a background to the research and the company has been provided. The aim and objectives of the research were identified and its significance stated. In the following literature review, several aspects of internet marketing and consumer behaviour are discussed. It also accounts for a detailed analysis of the positive and negative impact of internet marketing on customer behaviour. The next part denotes the theoretical aspects and literature gap of the review. Methodology chapter has discussed the procedures that have been used in conducting the research and the ways data has been collected and analysed. The next chapter has represented the findings in a tabulated format and an analysis of the findings has been done.
Findings of the research suggest that internet marketing has both negative and positive impacts on consumers' behaviour. Positive impact involves the enhancement of the perceived service quality of the organisation. The negative experience of customers with a brand can impact consumer behaviour by discouraging them to make purchases from the brand.Productivity can be enhanced using internet marketing and sales growth elevated. Recommendations have been provided for the organisation like utilising email newsletters, updating information on the company website and investing in research and development to formulate new marketing stratified for attracting customers.
Acknowledgement
I would like to show my gratitude for the guide and support provided by my tutor, seniors and parents. I will thank my supervisor for giving me an opportunity for conducting this research and guiding me throughout the research. It would have been difficult to complete the research in the absence of the persistent support of my supervisor and I will be grateful for this opportunity. Finally, I would like to thank those authors that have worked in this field and allowed me to enrich my work and findings of the research.
Table of Contents
1.0 Background of the research 6
1.1 Organisational Background 7
1.2 Significance of the problem 7
2.Chapter 2: Literature Review 11
3.7 Data Collection Instruments 27
3.12 Limitation of the research 28
4. Chapter 4: Data Analysis and Findings 29
5. Chapter 5: Conclusions andRecommendation 37
List of Figures
Figure 1: Social Media Users on a global scale 15
Figure 2: Internet Users across the world 17
Figure 3: Black Box Model of consumer behaviour 20
List of tables
1. Chapter 1: Introduction
1.0 Background of the research
Advancement in digital technology and increase in the connection people have with the internet has made it necessary for companies to shift their strategic marketing to position themselves in the industry (Adams,2017). Internet marketing can be defined as strategies that are used by organisations to market their services or products with online platforms and digital means. It refers to the efforts and activities relating to marketing that a business does exclusively over the internet (marketbusinessnews, 2021). Internet marketing is done by organisations in order to have access to the customers that are available or have access to the internet. Internet is considered a suitable place to communicate or establish personal relations with potential or target audiences of an organisation (Kayumovich, and Annamuradovna, 2020). Internet marketing additionally is considered the most effective way to reach or grasp customers in the year 2021 (Trevelino, 2022). It also enables an organisation to create an image of being corporate and currently it is possible through making minimal expenses. However, the organisation make use of internet marketing keeping in mind the customer interests and doing so allows the organisations to improve their business operations and activities.
In the current scenario, the customers prefer to search for products they desire online to make an idea about the best offers or deals that they can avail. Consumers currently rely on popular brands that they can avail themselves of products online (Bala and Verma, 2018). If a brand is popular on the internet or any other social media platform consumers are likely to make purchases from these brands. Thus, if brand or product awareness of organisations can be increased consumers are likely to purchase products from these brands.
Marketing managers that fail in utilising the significance of the internet in their business will remain at a disadvantageous position. However, there are negative aspects that are associated with internet marketing. When organisations market their products online customers can engage with them and provide reviews. If one customer has a negative experience with the product from a brand and a poor review from their end will tend to influence other customers (Sudha, and Sheena, 2017). In that case, fewer customers might purchase products that have poor reviews. It can negatively impact the business by degrading its brand image and reducing the revenue generated by them. A customer becomes loyal to the brand as a result of the uniqueness of its products (Dilham et al 2018). Through the process of internet marketing, the organisations are likely to receive feedback regarding the products and they can accordingly modify their business operations and offerings. This process can enable the company’s to enhance the quality of their products and manufacture unique products and offer them to the consumer. All of these can increase the level of customer satisfaction thus allowing them to ensure customer loyalty.
1.1 Organisational Background
Zara is one of the popular organisations in the fashion retail sector in the UK and across the globe. It is known to sell trendy clothing and accessories for men, women and kids. It is one of the largest fashion companies globally with the largest group of distributors (Zara, 2022). Customers are at the heart of the organisation unique business structure and the sales are conducted through their extensive retail network. Founded by Amancio Ortega in the year 1975, the company is headquartered at Arteixo, Spain (Inditex, 2022). Worldwide the organisation provided employment to 114,116 individuals in the year 2020 (Statista, 2021). There has been a fall in the revenue generated by Zara across the globe in the year 2020 by 8 billion euros. Zara operates worldwide in nearly 2300 retail locations The global brand value of the company increased to 18.4 billion from 10 billion between the years 2016 to 2019 (Statista, 2022).
The majority of organisations to promote and market their products in the current times use digital Technology. The instance is the same in the case of Zara and the company is known to use an internet or online marketing strategy rather than making use of traditional advertising methods. A multi-channel strategy is used by Zara as a strategy to keep the customers informed and continue expansion in the market of the United States, Japan, Norway, Denmark and others. The company arranges internet or online campaigns to attract a larger base of customers and influence them to purchase products from Zara (Duoyan, 2021). Additionally, the organisation takes the feedback from customers seriously and it persistently analyses the demands of the consumers in the market and thus modifies their products. It allows the company to make their customers experience with the brand meaningful (Danziger, 2018). The involvement of the customers through their online channels helps them enhance their brand loyalty.
1.2 Significance of the problem
Digital marketing strategy has been on a rise in the UK with the emergence of the covid 19. The majority of the businesses in the country have elevated the level of investment in innovation and digital technology (Silva, 2021). This has been fruitful and beneficial for these organisations as it increases customer engagement along with levels of customer satisfaction. Thus, the significance of the current problem selected is that using internet marketing Zara might be capable of influencing customer behaviour and elevating customer satisfaction levels with the firm's product. A large number of fashion brands in the UK are using online and digital marketing tactics to dominate the industry and some of them are Primark, Marks & Spencer, Peacocks, Matalan, Zara and others. Through internet marketing, the marketers of an organisation play a vital role in positioning the organisation and its products within the minds of its potential customers to be successful. However, it has made the customers more powerful and capable of gathering more knowledge about products they purchase and selecting the best one (Rathnayaka, 2018).
94.62% of the UK population was found to be using the internet in 2020 and it was an increase from 92.52% in 2019. 46.6 million makes use of the internet on a daily basis in Great Britain (Statista, 2021). Therefore, internet marketing will enable Zara to reach a large number of customers available online through their promotional strategies and receive their valuable feedback. Additionally, customer engagement with the company can also be increased. Understanding the impact that internet marketing has on consumer behaviour will enable companies to understand whether their strategies are effective or not. If it is found that there is a negative impact of internet marketing, the organisation will be able to revise its way of operating.
1.3 Statement of Purpose
The major purpose of the research is to evaluate the ways internet marketing influences the behaviours of customers in Zara. This research has various purposes where it initially aims to understand the concepts of the internet market and develop insight about what is meant by customer behaviour. The impact of internet marketing on Zara's customers will be analysed to understand whether it is effective or modifications are necessary. Additionally, the research purports to provide recommendations to Zara and other organisations in the fashion industry so that they can improve their internet marketing. This might help the organisations to have a positive impact on the behaviours of the customers. Addressing, this problem will enable the companies to engage kore with the customers and take every necessary steps that can increase customer engagement, increase customer satisfaction and profitability of the company.
1.4 Aim
This research aims to analyse the impact internet marketing has on customer behaviour and company productivity in the context of Zara.
1.5 Objectives
To understand the concept of internet marketing
To develop insight regarding the concept of customer behaviour
To evaluate the impact internet marketing has on the customer behaviour and company productivity at Zara
To recommend strategies for improving internet marketing to have a positive impact on customer behaviour
1.6 Research Questions
What is internet marketing?
What is the concept of customer behaviour?
How does internet marketing impact customer behaviour and company productivity at Zara?
Which strategies can enable an organisation to improve its internet marketing in order to have a positive impact on customer behaviour?
1.7 Dissertation structure
The chapter introduction has discussed the research background and an introduction to the organisation has been provided. Research aim and the objectives have been stated and the significance of conducting this study has been added.
The chapter of the literature review will explore the various aspects of the study to provide the readers with an idea regarding the concept of internet marketing and the ways it influences consumer behaviour. A conceptual framework for the study will be provided and the literature gap identified.
Next, the chapter on methodology will discuss the research strategies that will be used for the current research, the data collection procedures and the limitations of the study.
The following chapter will include the analysis of the research findings and it will be represented using tables, graphs or figures.
Last chapter of the research that is the conclusion will enumerate whether the research has attained its objective and recommendations will be suggested.
1.8 Summary
Thus, the chapter of the introduction has focused on introducing the concept of internet marketing and the research topic. A company background has been provided and the significance of conducting the research has been discussed. Finally, the aim and objectives of the research have been stated and research questions formulated. A brief overview of the overall structure of the dissertation has been included.
2.Chapter 2: Literature Review
2.1Introduction
According to Oztemel and Gursev (2020), a literature review can be described as the culmination of the scholarly articles that lead research on a specific topic. It provides documentation of a specific topic in context to the collection and attribution of several sources that form the base of the research. In this dissertation, a detailed analysis will be performed on the concept of internet marketing and consumer behaviour and impacts of the same.
2.2 Main Body
Concept of Internet Marketing
Internet marketing can be associated with the implementation of properstrategies that help a company market its product and services through online digital pathways as stated by Hanson and Kalyanam (2020). Companies all across the globe assess a varsity of tools and platforms that help in the inculcation of social media, online ads and paid promotions. According to Grubor and Jakša (2018), several reasons serve as the aim of the companies while conducting internet marketing namely, the enhancement of the brand name and brand value and building relationships with the customers. The proper implementation of internet marketing allows a company to discover the wants and needs of the target market segment of the same. It evolves the proper productivity and profitability of the brand in multiple spheres. Dilham et al. (2018) stated that internet marketing typically makes use of the customer’s online presence and activity to connect them with the desired business at multiple levels on the internet. Factors such as business models, budgets and targeted customer base act as the key factors in the modulation of the internet marketing of a company.
Kumar (2020) pointed that several aspects of internet alerting help in the increment of profit and growth rates of the company. Email marketing helps companies to reach out to each customer on a personal level. The proper implementation of email marketing allows a brand to send direct mails to individual customers thus catering for the engagement and attraction of the consumers. Emails are used widely to share important information about rewards and sale discounts and build long-lasting relationships with the customers of a brand. According to Anderson and Jiang (2018), social media helps a company to reach out to their desired segment and analyse the behaviour of the target market in a global sphere. Social media is widely used across the globe where older consumers are more prone to use Facebook and young customers are keen on using TikTok and Instagram. The proper identification of the time processed by the target market can help the company to build an effective focus on the places and areas of interest. Blogging forms a reflective criterion in describing the impact of internet marketing on global spheres.
It helps companies to increase the website SEO (Search EngineOptimisation) by attributing severalarticlesandposts targeting certain popular keywords. SEO helps organisations to increase their audience and caters to a potential growth of the same. Pevzner et al. (2018) fragmented that online advertisements form an important aspect in the online marketing strategies followed by several companies. The evolution of pay per click advertisements is targeted on social media to reach a specific segment of the consumermarket and increments interest in the products mad services offered by the same. Gayathri (2020) stated that Sidebar ads on several websites allow consumers to engage and explore the several strata of a business. Lastly, the evolution of sponsorships and paid promotions helps companies to build an audience and match the target markets. Often companies make use of social media influencers to focus, use and promote the effectiveness of the brand name and products to their respective followers and stimulate growth. Availability of promo codesandspecial offers allow the brand to increment brand awarenessand drive sales and profit rates.
Tairova et al., (2021) state that internet marketing formsassociating with being an all-inclusivetermthathelps companies to market products and services on a global sphere and online base. Traffic and advertisements from the social media pages can helpconsumersdiscover several spots of a company and stimulate growth and profitability. Advantages taken from the above-mentionedchannels can help companies to gainpotentialclients and customers to boost growth. Consumers frequently make use of online methods to research and deliverpurchasingdecisions for variable companies. Investment in online marketing can help a companyto develop its business and make transformational sales and development.
Channels of Internet Marketing
Internet marketing as stated by Yusfiarto and Pambekti (2019) can be summarised as the marketing efforts inculcated by businesses solely based on the internet. Several methods make use of the channels to drive traffic to the advertisers’ official website thus creating an expansion for the same. This leads to an increase in the productivity and profitability of a company in multiple spheres. Often consumers are directed to create traffic on the advertisers’ displayed channels to engage the same in purchasing products and services catered towards the targeted group. However, Obednikovska et al. (2019) refried that marketing over the application of the internet is a blooming opportunity for the enhancement of a business. Several channels of internet marketing are catered to engage customers into buying products and services offered by a respective brand. Some of them are listed below.
Internet marketing by SEOinvolves as refereed by Schultheiß and Lewandowski (2020) the process of gathering higher internet traffics to a particular website of a company. With the proper implementation of an accurate SEO strategy, the rankings portrayed by the company websites in association with the search engines improve in several aspects.
Google and Yahoo can be denoted as the top search engines used by companies to cater their websites. Web pages, content, video and local listings of the company websites can be formulated in a method to prove relevancy to the users. Pay per Click (PPC) can be attributed as the most effective internet marketing channel that helps companies turn their latent users into engaged and loyal customers. The proper association of PPC as stated by Yogeshet al. (2019) helps in creating a diverse prospectus for the companies by displaying relevant online display ads that can format the prospective clients for the same. PPC ads are formulated in the method of sponsored stories, product listing and video advertisements on multiple websites and social media platforms.
Fox (2021) stated that several forms of advertising act as entertaining, engaging and interactive channels of internet marketing that establish relationships among the companies and their consumers. Text ads consist of written texts that are attached with hyperlinks that allow customers to explore the products and services displayed by several brands on their websites. They appear typically in blog posts and news articles. Display ads are much common in web pages, emails and applications. Banner ads form a part of the web pages whereadvertisersdisplay their products to the consumers. In-app ads form an important part of internetmarketing and are extensively used in software apps. Companies often use video ads where the display is placed before, during or after video streams strategically. This helps customers interact and engage with the services showcased by brands.
Social media marketing forms extensively affiliated and used channels of internet marketing for companies across the world. Chatterjee and Kar (2020) stated that companies use platforms like Facebook, YouTube, Instagram, Twitter and others to convey a dynamic two-way communication with the target market. This helps the users to see promoted content based on their personalised interests and likings. In 2020, over 3.6 billion people in the entire world were inculcated in using social media daily as reported by Statista (2021). Social media helps organisations to connect with prospects of customers and answer their doubts and queries. Social media influencers form an important aspect of internet marketing that review display and cater products and services of respective brands to their followers.
Figure 1: Social Media Users on a global scale
(Source: Statista, 2021)
Concept of Consumer Behavior
Consumer Behavior as stated by Mothersbaugh et al. (2020) denotes the aspects regulated by individual customers, groups and companies in attributing methods of selecting, buying and using favourable goods and services. The main aim of the companies while analysing consumer behaviour lies in the generation of maximum revenue and customer satisfaction and engagement. Several actionscatered by companies act as a determining factor of the behavioural specs prorated by customers. Marketers use various strategies to analyse the customer motivation and attraction present while buying a specific product or service. This helps the companies to analyse the necessary quality of the productsthatmatch the demand of the consumers in the industry. According to Trudel (2019), consumer behaviour can modulate depending on severalmarketingfactorsattributed by brands namely, product price, design, promotion and packaging. The difference in age, gender and income levels plays an important factor while attributing several areas of consumer behaviour in the market.
Buying motives displayed by customers and the attribution of personal perception allow them to signify their responses towards a specific brand.Trudel (2019) stated that the psychological aspect of consumer behaviour plays an important role in demonstrating the engagement of the customers to the respective brands in multiple spheres. Social status and the family group often form an important aspect while assessing the consumer behaviour spectrum. The physical and social surroundings of a customer are important in attributing several aspects of the respective consumer behaviour. Often the attribution of religion and social class forms definitive specs in the modulation of customer behaviour for a brand.
Consumer differentiation helps the companies to analyse the diversified customer group catered in the market helps to reach out to the maximum populations.Khan (2020) specified an insight on the importance of the assessment of customer behaviour in boosting the growth and productivity of a company in several spheres. Behavioural aspects of the consumers allow companies to tailor the strategies needed to fulfil and satisfy the consumer groups in the market. Alkitbi et al. (2020) stated that the Retention of customers is tailored by consumer behaviour analysis on a global scale. The creating and attraction of new customers and retention of the same forms an important aspect in the growth of a company on multiple levels. Proper attention to customer behaviour can help companies create innovative products and services to satisfy the consumers. The proper prediction of market trends allows companies to produce and allocate products based on the interests of the consumers. Based on the research of the customer behaviour, companies decide on the creation of production strategies that help in increment of productivity with a decrement of marketing costs.
Analysis of competitive market based on consumer behaviour as stated by Shabbir et al.(2020), can help companies to understand and create feuding advantages. The proper implementation of consumer behaviours helps strands to strive hard on creating and inculcating proper innovation on their respective products and services to promote success and growth. Consumer behaviour allows companies to stay relevant in the market and face transformations due to the evolving trends in the industry. Customer service forms an important aspect of the consumer behaviour of a company and the proper management of the same can improve the productivity and profitability of the organisation.
Positive impact of Internet Marketing on Customer Behaviour
With the transition of marketing techniques from traditional to internet-scale, the effect on the decision-making abilities of the consumers has transfigured in a recognisable pattern. Punyatoya (2018) commented that internet marketing has brought about transformations in the marketing strategies implemented by companies to attract consumers and retain the same on a global scale. Consumers have intended on becoming detailed researchers and developed a keen interest in experimenting. With the proper implementation of internet marketing of the companies on a global scale, consumers have become enlightened and empowered about the products and services available in the market. However, the author failed to recite the methods inculcated by customers to make purchasing decisions effectively. Modern-day customers are exposed to a vast magnitude of brands that helps in facilitating purchasing process of the consumers. Customers are often keen on comparing and experimenting with products and consult the decision making of the same. Digital marketing has allowed companies to establish transparent and vibrant relationships with customers and incremented productivity and profitability in the global sphere.
The vastness of digital word of mouth is immense in the modern world. Akroush and Mahadin (2019) reported that it acts as a huge factor in affecting consumer behaviour in terms of the reviews and ratings provided on multiple sites across the internet. In today’sevolving world, word of mouth is evaluated by social medic influencerrecommendations and testimonials. This allows the customers to assess their purchasing decisions based on the recommendationsprovided by other users. Consumers are keen on projecting their personal opinions on a larger scale overthe internet and have transformation in the consumerist approach of the brands. Several companies have been facilities by their online presence, which have significantly boosted their sales figure. Customers form an important part of the growth andperformance of a business in multiple spheres. The providence of internetmarketinghas allowed customers to activelyattractand communicate with the brand on the global sphere. Statista(2021) reported that over 4.66 billion of the total world population form active users of the internet on daily basis. Social media sites are accessible to the global population and people engage actively with brands via their social accounts and consumer forums.
Figure
2: Internet Users across the
world
(Source: Statista, 2021)
This has helped the brand to increment its name and value. The proper implementation of internet marketing has allowed brands to amplify their production capacity and quality in several attributes. Customers are keen on sharing their areas of interest with the brand over social media, which helps the organisation inculcate innovative measures to secure growth and performance. The attribution of proper responses to customer feedbacks helps brands to receive a higher level of energumen and witness consistent growth. Ritz et al. (2019) stated that the growth of internet marketing has significantly boosted the impulse buying phenomenon of buyers on a global scale. Companies to boost positivity in the customer behaviour attributed by the market use this phenomenon. Proper implementation of online advertisements helps the brand to highlight attractive deals and discounts to engage customers. Companies to bring transformations in consumer behaviour cater to social media platforms and third-party websites. However, the author failed to mention the psychological spots behind the impulse buying behaviours of the customers.
Negative impact of Internet Marketing on Customer Behavior
The proper analysis of consumer behaviour allows accompanies to bring transformation in the profitability and productivity of the same in global spheres. In the modern-day internet, marketing plays a key role in modulating the purchasing patterns and decision processing of the consumers. However, Joudeh and Dandis (2018) specified that the evolution of internet marketing has caused several negative impacts on the modulation of consumer behaviour in the market. Digital marketing has proved the assessment of the difficulties faced by the consumer in aiming consistency and loyalty to a specific brand in the market. The digital marketing revolution allowed the consumers to be exposed to the large range of products and services present all across the world. This has brought transformations in the customer behaviours where they choose among the better quality producers for a certain amount. According to Boateng (2019), customer support, brand value and brand discounts often act as a regulating factor that modules customer to change their choice and preferences. Consumers in the market are less hesitant when they indulge in brand switching. The summation of all the above-mentioned functions has led the companies to dominate fiercely in the specific industry and thrive at providing good services at lower costs.
Availability of a large number of opportunities in the market, the presence of consumer loyalty is almost difficult for companies where switching portrays a practical approach. Ting et al. (2019) stated that consumers in the modern world pose a lower tolerance level and patience with high expectations of the products and services of a brand. Customers are readily exposed to the online user reviews and forums that allow them to engage with transparent and real feedbacks about a specific brand. Often customers are entitled to expect hassle-free responses from companies in a stipulated time range. They are keen on displaying their tonight's and dismays over public portals and directly impact the brand reputation on the online sphere.
An abundance of information allows customers to reflect on their buying behaviours. Hassle-free exchanges and next day deliveries form the key factor behind the increasing expectations of customers all across the world. Moreover, Voramontri and Klieb (2019) stated that negative news and reviews regulate the brand value in a customer's mind. Often competitors make negative reviews on the brand name through their fake websites. This can create an immense determination in the productivity and profitability of the business and alter the behavioural aspect and loyalty of customers. The vastness of fraud across the internet can have a transformation in consumer behaviour towards a specific brand. Often unethical practices, fake trademarks and logos defame the reputation of the brand and modulate consumers to express rage on public platforms. The cluttering placement of advertisements across websites can demoralise the interest among the customers and harm the pretty scale of a company. Moreover, internet marketing is inaccessible to the elderly and illiterates and can create frustration among the customers of a specific brand. However, the author failed to mention the necessary processes regulated in carrying online marketing in companies.
Impact of internet marketing on company productivity
A mixed impact of internet marketing on the company productivity can be observed here. DePino (2020), opined that internet marketing is beneficial for an organisation as it allows them to find customers that they have never encountered earlier. Thus, good customers are likely to enhance the productivity of the organisation. Spike in sales can be evaluated and attributed to internet marketing. According to the author feedback from the customers can be derived about the products and services which might help them to improve their efficiency and earlier levels of productivity. Gosavi (2017),differently stated that the use of the internet for marketing was more common by organisations owned by female and the productivity and performance was no different than companies not adopting the same. Sales growth and productivity were found to be constant even after the adoption of internet marketing.
Theoretical Aspect
The proper application of the Black Box Model of consumer behaviour can identify the proper stimuli action that can be responsible for the buyer activities. Davidavi?ien? et al. (2019) coined that the buyer’s black box model can be attributed to several stimuli that cultivates response from the consumers. The companies to attract the buyers premise stimuli in the form of promotion and advertisements. The two main sub-components of buyer’s black box is attributed to consumer characteristics and customer decision processes. Buyer’s characteristics attribute to the personal, psychological, cultural and social strata of the same. The proper association of the buyer’s selection processes can be countered to the profitability of a specific company. Decision processes are identified with several formats that analyser the identification and need of the consumer of a specific product or service. After the proper recognition of the product, customers tend to look for information on various products to gain satisfaction. The next step is formatted by the evaluation of the alternative present in the market. Consumers often set various parameters to assess the functioning, pricing and packaging of the products available in the market.
The next strata areendorsedby the purchasedecisionamong the consumers, which allows the same to rank the products and buy the suitable fit. Post-purchase behaviour of the customers allows consumers to review and rate products and the brand based on performance. Lepeyko et al. (2018) stated that the proper implementation of the black box model allows consumers to respond with a culminate approach to the conscious and well-informed decision-making process. However, the author pointed out that the theory can be attributed to the sensory buying of the consumers and cannot analyse the impulsive behaviour present in the customers.
Figure 3: Black Box Model of consumer behaviour
(Source:Ludvigaet al., 2012)
The implementation of the RACE Modelallows companies to interact and cultivate several spheres of digital marketing effectively. According to Safantaet al. (2019), the main idea behind the development of the attributed model allows companies to avail Omni channel communications, whichtargetsnullifying the challenges of reaching and engaging customers across the world. The several aspects of the REACH frameworkcan be culminated to form effective Reach, Act, Convert and Engage spheres of internet marketing. Implementation of the Reach sphere allows companies to build awareness and visibility of the specific brand and value to monitor traffic on the respective websites. The proper inculcation of Act stands for the generation of online leads that cater companies to process path to purchase context of the concerned target market.
Convert stage is catered to develop at the conversion of sale and profit levels of the companies that monitor customers onto paying for the avail of products and services. The last stage namely Engage aims at creating long-lasting customer energumen and relationships that promote productivity and loyalty for the companies via online marketing. According to Chaffey (2022), the proper implementation of the RACE model allows companies to cater for growth through a practical and action friendly approach that is catered towards customer engagement via online modes. It covers the data-driven marketing approach that can help companies generate profit via continuous processing, functioning and optimisation.
(Source: Chaffey, 2022)
Conceptual Framework
Figure 5: Conceptual framework
The literature review has discussed the impact internet marketing has on consumer behaviour and company productivity and explored aspects related to the same. Both positive and negative impacts of internet marketing on consumer behaviour and impact on the overall productivity has been identified. Theories of internet marketing have been discussed like the Race Model. Detained explanation of internet marketing and channels of internet marketing were discussed.
2.3Literature Gap
The above literature review failed to demonstrate the several technological innovations that can cater for the growth of internet marketing in the global sphere. It failed to focus on the analysis of the customer behaviour based on their birth and originating location. It did not discuss the methods that can help companies to engage and attract customers via online marketing. The review failed to focus on primary data collection while attributing the impact of online marketing on consumer behaviour. Literature on internet marketing concept and theories are specific in this discussion.
2.4 Summary
The chapter included review of various articles and presented their findings. Some theories have been included to discuss the concepts in detail.A literature gap along with a conceptual framework has been provided. Some concepts related to internet marketing are being introduced.
3. Chapter 3: Methodology
3.0 Introduction
The methodology chapter will discuss the strategies that have been used for conducting the study. The research philosophy, the research approach that has been selected and the methods of collecting data will be discussed. The instruments that will be used in data collection and the sampling technique will be enumerated. Additionally, the reliability, validity of the study will be documented along with the ethical considerations and limitations of the research.
3.1 Research Onion
Figure 6: Saunders research onion
(source: research-methodology, 2022)
It refers to extension of research tree and the stages that a researcher should pass while devising methodology.
3.2 Research Philosophy
3.2.1. Types
Research Philosophy can be divided into four types and they are interpretivism, realism, positivism and pragmatism.
3.2.2 Positivism
Positivism philosophy believes that data collected through measurement and observation is only worthy of trust. It has been used as it is objective in approach. This philosophy believes that science is value-free and must be rationally judged. Knowledge is considered as measurable and observable according to positivism scholars and it is based on an empiricist viewpoint assuming that human knowledge stems from their experiences (Abu-Alhaija, 2019).
3.2.3 Interpretivism
This theory has a focus or emphasis on making qualitative analysis of the findings over a quantitative one.
3.2.4 Realism
It is based on independence of human mind or their perspective for reality. Thus, reality can be different depending on perspective of an individual.
3.2.5 Pragmatism
This philosophy is based on the belief that the world can be interpreted in varied ways and there are multiple realties.
3.2.6 Selection and Justification
A positivism research philosophy has been selected for finding the impact of internet marketing on the behaviour of customers at Zara. A contrary to this research approach is the interpretivism approach which makes an assumption that reality can be accessed using social constructs like words, language, consciousness and similar others. This philosophical approach has been not followed in conducting the research as it is subjective and therefore increases the room for bias. The data generated in this type of research cannot be generalised as it includes personal values, opinions and viewpoints.
3.3 Research Approach
3.3.1. Types
The research approach can be classified into two major types and they are deductiveand inductive.
3.3.2. Deductive Approach
In a deductive approach reasoning takes place from general to specific and has been used as it enables explanation of the causal relationship between the variables. Assumptions are made in the beginning and they are tested in the research to lead to in either its confirmation or rejection (Woiceshyn and Daellenbach, 2018).
3.3.3. Inductive Approach
A contrary to deductive research approach is the inductive research approach which begins with observing a phenomenon and theories are stated at the end of the research (research methodology, 2022). No assumptions are made about the findings in this type of research and reasoning takes place from specific to general.
3.3.4. Selection and Significance
A Deductive research approach has been used for the present research and it involves making an assumption about the research outcome. However, inductive research approach has not been used for the present research as, if the observations made are incorrect, the researcher is likely to end up in conclusions that are incorrect.Inductive research approach although encourages divergent thinking it is limited as it involves beginning from one particular finding and exploring the same for drawing an overall inference of the research phenomenon. Therefore, a deductive approach has been chosen so that the research involves collecting data a large number of data to arrive at a particular or specific finding.
3.4 Research Strategy
3.4.1. Types
Research strategy can be either primary or secondary
3.4.2. Primary Strategy
Primary Research Strategy involves collecting fist hand data from the participants to provide the research with current data and information about a phenomenon.
3.4.3. Secondary Strategy
The secondary research strategy involves collecting data about a phenomenon from existing published sources like newspapers, articles, books, journals and magazines (research-methodology, 2022).
3.4.4. Selection and Justification.
Secondary Research strategy has been used for understanding the impact of internet marketing on the customer behaviour of Zara. One disadvantage that is associated with secondary research strategy is that it can deprive the research of up-to-date and recent data. A secondary research approach has been chosen for conducting the research as data is collected from authentic sources which tend to increase the reliability and the validity of the research finding. A primary research strategy has not been selected for conducting the research as it can be quite expensive and time-consuming if it comprises collecting data from participants face-to-face (startuploans, 2021). Additionally, access to participants for conducting primary surveys or interviews is also a complex aspect relating to collecting primary data collection.
3.5 Research Design
3.5.1 Types
Research Design can be classified as exploratory, descriptive and conclusive.
3.5.2. Descriptive Design
A Descriptive research design is used to obtain information concerning a phenomenon in a systematic order to describe it appropriately (Rahi, 2017). It has been used as it provides an accurate understanding or profile of events, situations or people.
3.5.3. Conclusive Design
A conclusive research design generates findings useful in concluding or resolving the research problem being studied.
3.5.4. Exploratory Design
This design only involves developing an in-depth understanding through qualitative analysis and has the probability of making the research findings subjective.
3.5.5 Selection and Justification
Descriptive research design has been used for exploring the ways relationship marketing influences the behaviour of consumers at Zara. It tends to observe a phenomenon as it occurs and document it accordingly and incorporate both qualitative and quantitative methods in research. Further using this descriptive method enables in understanding the research phenomenon in-depth allowing developing a greater insight into the research topic. Exploratory research design has not been used in the present case as it is unstructured. A conclusive research design has not been selected for the study as it tends to analyse data only in a quantitative manner. Using a conclusive design could have made the research process highly structured and formal in nature.
3.6 Research Method
3.6.1. Types
Research method can be both quantitative and qualitative.
3.6.2. Quantitative
The quantitative approach in data collection involves the use of empirical and systematic methods in investigating a phenomenon. Data gathered using the quantitative method can be assigned hard numbers and can be processed using statistical analysis (Basias and Pollalis, 2018).
3.6.3. Qualitative
Qualitative data collection on the other hand involves exploring the topic of the study and gaining insight into the phenomenon through interpreting the feelings, emotions and behaviours of others.
3.6.4 Selection and Justification.
There is two ways of data collection namely Primary and Secondary data collection. Secondary data collection has been done for this research and both Quantitative and Qualitative data has been collected regarding the phenomenon.A quantitative data has been used for the present research as it is objective and can be easily analysed and interpreted. Although this data collection method is said to have the poor generalising ability it provides in-depth and rich data regarding situations associated with real-life (research-methodology, 2022). Qualitative method has been used for the present research as it enables to incorporate the human experience into the research which is vital for understanding a topic as an impact relationship marketing has on consumer behaviour at Zara.
3.7 Data Collection Instruments
The instruments that have been used for the data collection are scholarly articles, newspaper articles and similar trustworthy sources. Journals and Articles that could be freely accessed from Google scholar has been used for conducting the research. Popular and renowned newspapers have been selected to derive information or collect secondary data about the impact internet marketing has on customer behaviour.
3.8 Sampling
Keywords will be used to search the articles and journals from Google scholar. Total five themes have been used and for these articles published in or after 2017 have been considered.
3.9 Reliability
The data has been collected from authentic and reliable sources like articles and journals from Google scholar which can be an implication of high reliability of the data that has been acquired for the study. Newspaper articles that are renowned and current have been used for the current research and thus the findings that the research has provided can be considered as reliable.
3.10 Validity
Validity can be considered as to whether the research method measures whatever it has claimed to study or explore in an accurate fashion (Skaaning, 2018).A bias-free method has been used to select the sample or articles to be included in the data collection. Additionally, authentic and trustworthy sources have been explored to collect the secondary data of the study. Articles selected for the study have been mostly published in 2017 and beyond sand thus the research has made use of data that is recent. Therefore it can be stated that the research is worthy of trust and high in its validity. Thus, the methods that have been utilised in the study intend to measure the phenomenon adequately and accurately implicating its validity.
3.11 Ethics
Ethical considerations in a study involve conducting the research using moral principles and ensuring that the research does not involve any inhuman practices. Prior consent of the participants will be taken and only those participants that agree to take part has been included. Confidentiality of the data has been maintained and the data will be solely used for the research purpose. Additionally, the research has abided by the Data Protection Law and therefore the data collected from the respondents has been carefully maintained and stored. Highly objective standards have been adhered to, to ensure that the findings are genuine and authentic. The participants were permitted to withdraw from the research based on their willingness if case they felt any form of threat or inconvenience.
3.12 Limitation of the research
The limitations of this research are that only secondary data has been collected for the phenomenon and it has not been emphasised on collecting. Primary Data collection, which could have provided the research with up-to-date information about the phenomenon, has been ignored. Thus, the research might be deprived of recent data that could have made the research verifiable and more valid. The survey method has not been used to explore a topic like the impact of internet marketing on the customers' behaviour at Zara. It could have enhanced the objectivity of the research findings thus the probability to generalise it. Further, freely accessible articles have only been used and the paid version articles have not been included which could have provided the research with rich data.
3.13. Summary
Research methods will their rationale have been provided in the chapter. Additionally, validity and reliability associated with the research has been included.
4. Chapter 4: Data Analysis and Findings
(Source: created by the learner)
Analysis and Discussion
Theme 1: Internet marketing strategies used by Zara
With respect to internet marketing strategies, it has been found that Zara in collaboration with Facebook and Instagram has created Pacific games to attract new customers belonging to the younger generation (Joseph, 2021). A new trend in the markets for apparel companies is that they get to promote products of the firm within various video games. Currently, these organisations are involved in the creation of their own video games for increasing app download, providing interesting ways for sharing codes and discounts and driving website traffics. Using online video games Zara promotes various products of the company. An amount of $3billion has been set aside by the organisation to reach customers using digital technologies. This can be supported by Fox (2021) stating that various advertising channels like in-app ads, video ads are chosen as strategies to attract customers using internet marketing.
In another article, it has been found that Zara uses social media channels to draw the attention of the customers like Facebook, Instagram and others to provide customers with valuable offerings from their business. This is similar to Chaterjee and Kar (2020) stating in the literature review that Instagram, YouTube, Facebooks are two-way communication tools that companies select to attract and remain engaged with customers. It has also been found that the customers are regarded as king in Zara and constantly provides reasons to customers for visiting their stores. Additionally, Zara is present in every platform where customers need them, especially in social media. Currently, they are available in 39 markets online, with 2213 stores present across 93 global markets (Danziger, 2018). Continuous portfolios of the stores are strengthened through expansion with sister brands in already existing markets.
Theme 2:The positive impact of internet marketing on customers
According toJoudehand Dandis (2018), it has been found that making use of internet marketing increases the quality of service that an organisation provide to its customers. Solving customers queries, acknowledging their feedback and enhancement of engagement is ensured with the customers this increases the overall level of satisfaction of the customers and thus their loyalty towards the brand. This increases customer satisfaction and loyalty of the customer towards the brand. Companies cannot only attract customers with online marketing strategies but can enable them to retain the same. Customers having a positive experience with a brand are likely to recommend it to other customers through online channels thus increasing the customers' reach and influencing others to buy products from the brand (Ebrahim,2020). Thus, internet marketing enables organisations to reach out to more customers and convince them in purchasing the company's products. This can be supported by the findings of the literature review that state reviews from customers play an important role in influencing customers to purchase products from a particular company (Akroush and Mahadin, 2019). The reviews and recommendations can be from a social media influencer, comments or word of mouth that might positively affect the decision of customers towards consuming the same.
Theme 3: The negative impact of internet marketing on customers
However, all impacts of relationship marketing are not positive and there are several negative impacts of the same on the customers. It has been found from the secondary research that negative sentiments and experiences of any customer with a brand or its products can be communicated over social media platforms (Cooperet al., 2019). Communication of the same might affect the customers negatively and inhibit them from purchasing the products of the company. It has been found that when reviews on social media about a brand or an organisation is poor only a few customers are likely to purchase from such companies. A similar finding in the literature review is evident where it has been stated that negative reviews and news relating to a brand affect the customers' minds. Competitors tend to give negative reviews about an organisation using their fake websites. These negative reviews demotivate customers from making purchases of the company products. All of the same are likely to affect the productivity and profitability of the businesses (Voramontri and Klieb, 2019).
Theme 4:Impact of Internet marketing on Company Productivity
In an article by Hachimi et al. (2021), it has been stated by the authors stated that digital marketing is used by organisations as it is believed by these organisations that it can be efficient for enhancing the performance. Additionally, it allows business growth through the formulation of alternative and attractive approaches to traditional ones. It allows them to respond to the challenges of globalisation. The authors have stated that digital marketing has an overall positive impact on the performance and productivity of companies. Using digital marketing strategies allow organisations to compete with their rivals through the use of automation, optimisation of digital marketing. This helps them gain profitability and decrease productivity and allow the businesses to maintain a competitive advantage over others. With respect to this in the literature review, it has been found that companies using internet marketing can have exclusive experience which has never been encountered before. A spike in sales with increased customer interaction can in turn increase the productivity of the business (DePino, 2020). However, a contrary finding has also been evident in this case. Gosavi (2017), had stated that adopting internet marketing by organisations do not make major changes to business growth. According to the author, productivity and sales growth remain nearly constant even after the adoption of digital marketing strategies by firms.
Theme 4: Strategies of internet marketing
Several strategies can be adopted by the organisation in initiating or maintaining effective internet marketing. Secondary research reveals some effective internet marketing strategies that allow organisations in reaching out to their potential customers are email marketing, use of company website, platforms from social media, mobile and banner marketing (Gruborand Jakša, 2018). The authors of the article have stated that these are innovative tools for digital marketing that can allow the creation of a strong relationship with the audience or customers of the company. They have also mentioned that blog creation, nurturing the leads with targeted posts and messages and refining the marketing strategies can be effective to enhance purchase desire among customers.
From another Forbes article, it has been found in the secondary research that when organisations are present across various channels they are capable of reaching out to the correct audience. Additionally, it has also been stated that presence in multichannel allows the companies convey and communicate about their brands more effectively to a wide range of customers (Raviv, 2021). It has also been stated that internet marketing can be strengthened by improving the research and development of the organisation and setting up SMART goals for marketing.
Research and development will allow organisations to identify the customers need and preferences and their purchasing habits. It will help identify the potential competitors of the organisation and understand the market expectations. All of which can enable a company to formulate marketing internet marketing strategies that can address all these issues of the company. With respect to this, it has been found in the literature review that providing customers with an omnichannel experience can help organisations nullify several challenges. The challenges that can be nullified with the help of omnichannel communication are reaching and engaging with the global customers of the company (Safantaet al., 2019).Additionally, with the help of online leads, the companies can adopt the path of attracting customers in the concerned or target market.
Thus, it can be stated that Zara makes use of social media platforms to influence and attract customers to the organisation. It additionally utilised video gaming to promote the products of the company. Both negative and positive impact of internet marketing has been identified on consumer behaviour. While a positive experience with Zara can help acquire and retain customers a contrary experience when spread over social media is likely to affect Zara’s productivity and profitability negatively. Therefore, Zara can utilise strategies like investing in research and development before initiation of marketing strategies, begin email marketing and enhance presence in multi-channels to improve their internet marketing practices.
Chapter Summary
It was found that Zara has associated with social media channels like Instagram and Facebook to catch the attention of young customers. As a result of social media marketing organisations have been able to improve their service quality and derive feedback from the customers. This has allowed influencing other customers purchasing decisions positively. Marketing through websites and email marketing can be beneficial and the presence of firms over multichannel can allow them to convey better about company products and influence their behaviour.
5. Chapter 5: Conclusions andRecommendation
5.1 Introduction
The initial objective of the research was to understand the concept of internet marketing. Internet marketing involved implementing strategies that help a company market its products and services using digital pathways. Multiple channels of internet marketing have been identified from the research like internet marketing by SEO, advertising through text, in-app advertisements, video advertisements and others. The internet marketing channels that Zara has been found to be involved in are promoting the products using video games. Zara sets aside $3billion for boosting its customer reach using digital platforms.. It has been found that various marketing strategies using brand name, packaging and promotion can allow the organisations like Zara to influence or modulate consumer behaviour towards or away from purchasing the products of the company (Trudel, 2019). The positive impact of internet marketing on consumer behaviour is that it allows company implement strategies for attracting new customers and retaining the existing ones on a global level (Punyatoya, 2018).
Hachimi et al. (2021), opined that internet marketing allows business growth by formulating alternatives to the traditional approach to meet the globalisation challenges.The last objective of the research was to identify effective strategies that can help in improving internet marketing and have a positive impact on the customers. Several strategies have been identified from the secondary research that can serve to be beneficial for Zara.
5.2 Recommendations
Several recommendations can be suggested to Zara for improving their internet marketing so that there is a positive impact on the customers purchasing behaviour and for increasing the productivity of the company. Some of the recommendations are as follows:
Utilising Email Newsletters: It can serve as a good communicator of differences that exists from one business to another. Email remains underutilised in ensuring or maintaining a good customer relationship. Sending newsletters to customers instead of sending a promotional message can be a voice for the organisation and can be immensely effective for Zara.
Updating the website of the company regularly: This will allow Zara to communicate and convey messages about the offerings of the business. It will also help keep the company’s website mobile-friendly and enhance customers satisfaction and customer loyalty towards the brand.
Investing in Research and Development: If Zara makes greater investment in research and development the company will be able to identify the potential customers for their products. It will allow them to analyse the digital marketing strategies that have been undertaken by the rivals of the organisation. The market expectations can be captured by Zara investing in the same. All of which will allow improving the marketing strategies of the company.
5.3Conclusions
The aim of this research was to find the impact that internet marketing has on consumer behaviour and the productivity of an organisation. Conduction of the research has helped in meeting the aim and various objectives of the study. To ensure effective internet marketing organisations make use of a varsity of platforms or tools allowing inculcation of paid platforms, social media and online advertisement.
Understanding the concept of internet marketing has helped the research identify the importance of the same. Growth rates of the organisation and increment of profit can be the result of the adoption of internet marketing by the organisation. Similarly, Zara can enjoy an increase their profitability and business growth. Social media campaigns on Instagram and Facebook are utilised to communicate about the business offerings by Zara (Danziger, 2018). Thus, the research has fulfilled in achieving the objective of understanding relationship marketing.
The next objective of the research was understanding the concept of consumer behaviour and it has been denoted by Mothersbaugh et al. (2020) that consumer behaviour involves understanding factors beyond the consumption of favourable services or goods. The major aim of the organisations involves analysing consumer behaviour to enhance customer satisfaction and generate maximum revenue.
The most crucial objective of the research was analysing the impact of internet marketing on consumer behaviour and productivity of the company. This objective of the research has been fulfilled in the study by addressing the same. Several positive and negative impacts of internet marketing have been identified to meet both the aim and objectives of the research. It has also been found that positive reviews from customers on multiple internet sites be it through word of mouth or posts by social media influencers all help in inclining both new and old customers towards purchasing the products of a company. Thus, positive reviews about Zara on social media or other online platforms might help Zara in attracting customers to their products. The secondary data of the research implicate that internet marketing by the organisation help the companies improve the service quality by resolving customer queries, listening to the feedback of the customers and engaging more with the customers. This enhances customer satisfaction and customer loyalty towards the organisation (Joudeh, and Dandis, 2018).
Customers are additionally likely to recommend brands with which they have positive experience thereby influencing a larger part of the audience in purchasing products from that company. A negative impact that has been found to be evident is that negative sentiments with a brand can be easily communicated through digital or internet platforms. This can discourage the customers from buying products or services of that company (Cooperet al., 2019). Therefore, any negative experience of customers with Zara can be communicated using social media platforms inhibiting their potential customers from making purchases from the brand. A similar negative impact has been identified in the literature review to address the objective of recognising the impact internet marketing has on customer behaviour. Voramontri and Klieb (2019) stated that competitors of an organisation add negative reviews using fake profiles to influence customer behaviour negatively.
This research has met the objective of understanding the impact of internet marketing on a company's productivity. To meet the objective the research has identified internet marketing as beneficial for companies as it allows them to have experiences that are exclusive and never encountered before. Good customers when influenced by the internet marketing of an organisation can spike sales and improve the performance and productivity of the company. However, Gosavi (2017), on a different note stated that there is no major impact of internet marketing on sales growth and productivity by an organisation. The research findings have addressed the objective by stating that there is a positive impact of digital marketing on the productivity and performance of an organisation. Zara can compete with rivals using internet marketing, meet customer needs that thereby enhancing performance, productivity and profitability of the company.
The internet marketing strategies which can be advantageous for Zara like making use of social media, email marketing, banner and social media marketing. These can help Zara in reaching out to a greater audience base and attract new customers to the company. A multichannel presence by the companies allows them to communicate or convey correct messages to the targeted audiences (Raviv. 2021). Additionally, investing in research and development and setting SMART action plans for marketing has been effectively found to be effective. From the literature review, it has been found that omnichannel communication and online lead generation can be equally advantageous for the same (Safantaet al. 2019). Meeting this objective has allowed the research to fulfil the purpose of the study through understanding which strategies in the fashion industry can be beneficial for improving digital marketing.
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