Factors of Target-Based Internet Marketing in China - Dissertation Example

?Table of Contents ………………………………………………………………………. 2 Background of Dissertation Research…………………………………… 3 2- Aim, Research Questions and Objective of the Dissertation…………….. 3 3- Indicative Literature Review……………………………………………… 4 4- Proposed Research Methods……………………………………………… 9 5- Access and Ethical Issues………………………………………………… 13 6- Time Table of Research…………………………………………………. 14 Abstract This research focuses on the determination of the factors influencing target-based internet marketing in China. The researcher focuses on the use of the said target-based internet markets as well as the perceptions of the consumers in the People’s Republic of China. In order to determine this, this study undertakes the quantitative approach, focusing on the use of the survey questionnaire method in collecting pertinent data with respect to the same. 1- Background of Dissertation Research Various conditions emphasize the effects of the growth of the internet on marketing in the People’s Republic of China. Undeniably, this is directly linked to the experience of the consumers. Various researchers have suggested that the consumer market in China has only developed in the last ten years. This thus means that the traditional manner by which the Westerners shop is absent in China. In this sense, online shopping is easier to instill in the Chinese consumer as compared with their Western counterparts as there is no habitual behavior that marketers may change. This is also true in relation to the consumption of information with respect to brands, focusing on how the consumers in China learn about products and brands. From the perspective of marketing communication, it is highlighted that the impact of online information is very high in China. Undoubtedly, the internet provides the Chinese citizens with open and unregulated alternative to media channels that were traditionally used. 2- Aim, Research Questions and Objective of the Dissertation 2.1- Aim of the Dissertation The researcher aims to solicit the behavior of customers with respect to the prevalence of target-based internet markets. In view of the same, the researcher also aims to look into the various reasons behind the consumer’s preference for target-based internet markets. 2.2- Research Questions of the Dissertation This research also aims to answer the following research questions: 1. How do consumers feel about target-based internet markets? 2. What are the factors that contribute to the good perceptions of consumers with respect to target-based internet markets? 3. Why do consumers prefer target-based internet markets? 4. How do target-based internet markets influence the behavior of consumers with respect to intent to purchase? 2.3- Research Objectives The researcher also aims to address the following research objectives: 1. To determine how customers feel about target-based internet markets; 2. To look into the factors that contribute to the perceptions of consumers with respect to target-based internet markets; 3. To look into the reasons behind the consumers’ preference for target-based internet markets; and lastly, 4. To look into how target-based internet markets influence the behavior of consumers as regards the intent to purchase. 3- Indicative Literature Review 3.1- The Evolution of Advertising in the Internet Age This section of the literature review focuses on the evolution of the traditional role of advertising, most especially in the internet age, considering the fact that this literature review focuses on consumer behavior and target-based internet market. Shaver (2007) argues that in a rapidly evolving media environment, the success of the media and the companies depend on advertising revenues as well as those advertisers who make use of media in order to transcend information with respect to their products to consumers. In the same manner, the success is also attributed to the manner by which their customers understand, access and use the information they acquire in making decisions relative to making purchases. Schools of though developed with respect to the role of advertising in influencing consumer choice often focus on the different effects of market power and market competition (Shaver 2007). The first approach highlights the fact that it is through advertising that the people develop brand loyalty. On the other hand, the second approach mentions that consumers often make use of advertising as well as the information they obtain therein in order to make purchase decisions by taking into consideration the best value of a product or service (Shaver 2007). Shaver (2007), however, argues that there are certain flaws embedded on traditional models of advertising. Nevertheless, he emphasizes the fact that the consumers undoubtedly consider the information gathered regarding the products and services from the advertisements in making a purchase. However, this author also argues that the rise of the internet-marketing has considerably altered the manner by which information with respect to products are transcended to the consumers (Shaver 2007). Mastacan (n.d.) discusses the emerging trend of internet marketing. She agrees with Shaver (2007) in a sense that she also emphasized the growth of the internet and its effects on advertising. Undoubtedly, she argues that the growth of the internet does not focus on the mere selling of products; instead, its importance is also based on the fact that it has the ability to produce pertinent information about certain products (Mastacan n.d.). In fact, one of the current trends related in relation to the same is the development of target based marketing wherein the companies use information in order to target potential customers (Mastacan n.d.). Sweeny, MacLellan and Dorey (2006) contribute to the existing body of knowledge with respect tot the topic at hand, stating that the emergence of the internet has largely changed the manner by which companies advertise their products as well as the way which they conduct businesses. For instance, the travel industry used to rely heavily on word-of-mouth communication as regards the advertisement of its products and services. Nevertheless, the emergence of the internet as a medium of advertisement has changed this. Nowadays, travelers do not merely rely on word-of-mouth communication but rely on the internet for more information (Sweeney, MacLellan and Dorey 2006). Without a doubt, advertising is of paramount importance in terms of influencing the behavior of the consumers with respect to the purchase of a certain product and service. In this sense, the next section focuses on how target-based internet market influences consumer behavior. This is in consideration with the fact that the emergence of the internet has resulted to the use of target-based internet market. 3.2- Consumer Behavior and Target-Based Internet Market As Shaver (n.d.) and Mastacasan (n.d.) suggested, the use of the internet as an advertising media is growing. In this sense, it is used not only for selling products but for transcending information related to the latter as well. Because of this, target-based marketing is considered necessary in order to properly influence consumer behavior. Consumer Behavior is defined as “the full range of decisions and activities involved in evaluating, acquiring, using and disposing of goods and services (Sandhusen 2007, p. 217).” Sandhusen (2007) then discusses that it is consumer behavior that largely defines target markets. The companies generally utilize the information on consumer markets (their targeted markets) in order to set marketing objectives and at the same time, in measuring and anticipating sales figures (Sandhusen 2007). Miletsky (2009) also concurs with Sandhusen (2007) in a sense that the former author emphasizes on the need too know one’s audience in order to develop an advertisement that is appropriate for them. The succeeding paragraphs shall then present various studies conducted as regards the behavior of consumers about target-based internet markets. One of the studies related to the topic at hand was conducted by Luo (2000). In the said study, Luo (2000) looked into the perceptions of consumers in relation to target-based internet marketing. Using concepts pertaining to relationship marketing and social exchange theory, the results of the study displayed high rates of privacy concerns amongst the respondents of the said study (Luo 2007). Apparently, internet marketing is not that effective if the customers do not trust the sites, most especially if the consumers are aware that their website is obtaining relevant information with respect to them (Luo 2007). Mehta and Sivadas (2006) on the other hand, offered a different perception in relation to the topic. According to these authors, it is without a doubt that the use of the internet is essential to target and communicate with their consumers. In, this sense, they conducted a study amongst consumers in their hopes of determining their perceptions in relation to target based internet market (Mehta and Sivadas 2006). The results of the study showed that respondents prefer target marketing. Consequently, the respondents also displayed negative attitudes towards untargeted “cyber-junk” advertisements, Mehta and Sivadas (2006) discussed. Gordon and De Lima-Turner (1997) also posit the same results as those contained in the study of Mehta and Sivadas (2006). In the said study, the negative attitudes of the consumers in relation to untargeted “cyber-junk” advertisements were also emphasized. According to Gordon and De Lima-Turner (1997) there is a social contract existing between the advertisements and the internet users. In view thereof, it is essential that advertisements be targeted to the needs of these customers, thus ensuring its effectiveness (Gordon and De Lima-Turner 1997). Morimoto and Chang (2006) also conducted a similar study. The respondents of the said study showed that they do not like to receive unsolicited email messages related to product and service advertisements. The respondents of the said study pointed out that they would rather receive those advertisements in their email inboxes pertaining to what they actually need (Morimoto and Change 2006). It is in relation to these responses that Morimoto and Chang (2006) emphasize the importance of targeted marketing initiatives as the same are more effective than the unsolicited ones. Without a doubt, the previous studies enumerated shows that the importance of targeted marketing is also attributed to the fact that consumers are more likely to take the same into consideration as compared with the untargeted ones. 3.3- Summary This literature review focuses on various issues related to the central topic of this dissertation. Without a doubt, the emergence of the internet as a medium for advertisements has changed the manner by which the consumers receive information pertaining to products and services. In fact, it influences even the pre- and post-purchase behavior of the consumers. To ensure the effectiveness thereof, various researchers have suggested the importance of target based internet marketing. Target based internet marketing means that the advertisements are crafted to suit the needs of the consumers based on the behavior of the latter. This literature review also presented various studies in relation to the same. Others point out that there are trust and privacy concerns related to the use of target marketing in internet advertisements. However, most studies underscore the fact that consumers prefer targeted marketing strategies as they are likely to ignore the untargeted marketing junk. The studies and literature presented are thus essential to this study as this looks into the attitudes of the citizens of the People’s Republic of China in relation to target based internet marketing. Having established the conceptual and theoretical background related to the issue of this dissertation, the succeeding chapter shall then present the methodologies that the researcher shall use for this particular study. 4- Proposed Research Methods As mentioned, it is the goal of this paper to look into the behavior of consumers in the People’s Republic of China with respect to the growing popularity of target-based internet markets in the said country. In the same manner, the research also aims to look into the various factors and reasons behind the consumers’ preference for target-based internet markets. In view of these goals, this section of the research proposal offers an extensive discussion as to the different methods and methodologies that the researcher shall use. Generally, this study follows the quantitative design. More specifically, it also follows the descriptive approach in order to determine the behavior of consumers as regards target-based internet market in China. In addition to the same, pertinent data shall also be collected through the use of survey questionnaires which the researcher developed by taking previous researches into consideration. Through the use of purposive sampling, the researcher also obtains one hundred respondents to participate in this study. 4.1 – Type of Research This research follows the quantitative design. The quantitative design of research studies is defined as the approach that focuses more on the relationship between two variables – the independent and the dependent (Hopkins 2000). The quantitative design of research usually follows the descriptive or the experimental designs, usually based on the goals that the research seeks to attain (Creswell 2009; Hopkins 2000). Various researchers have also pointed out the importance of adopting the said research design in terms of the finalization of the results as well as in validating or rejecting the different hypothesis. The researcher believes that the use of the quantitative design is necessary for this study. It is through the use of the quantitative method that the researcher will determine the relationship between the features of target-based internet marketing and how consumers perceive the use of the same. The quantitative design is often used in studies looking into the use of the internet in marketing. In 2008, Hamid conducted a study that looked into the behavior of the consumers towards the use of the internet as a marketing tool, The said study employed the quantitative approach as it was essential in terms of proving the five hypotheses contained therein. In addition to the same, another study demonstrated the significance of the quantitative approach to research when the same was used in investigating twenty-six variables focusing on the effects of the usage of the internet on consumer behavior. In addition to what has been discussed, it was also pointed out that this study shall follow the descriptive approach. Hopkins (2008) mentions that there are two types of a quantitative research: the descriptive and the experimental. The experimental approach usually involves the manipulation, control and randomization of the researcher. Undeniably, the presence of the said elements show that in the experimental approach to research, it is essential that the researcher controls the situations so as to ensure that he or she acquires the needed data, the article “Ways of Approaching Research: Quantitative Design (n.d.)’ explains. Conversely, the descriptive approach is used in instances other than those which entail control. For instance, a descriptive study is important in terms of the development of a theory. It is also concerned with the identification of important problems related to practice. There are also times when the descriptive approach justifies the current practice. Finally, it also is important in making judgments related to the said practice. Evidently, a researcher neither manipulates not controls the variables when undertaking a descriptive approach to research (“Ways of Approaching Research; Quantitative Design” n.d.) In determining the importance of this approach for this research, the researcher cites the studies undertake by Gordon and De Lima-Turner (1997) and Morimoto and Change (2006). These studies also made use of the descriptive approach in showing the preference of consumers to targeted advertisements rather than those which are not as the latter are perceived as spam. In support of this, the researcher also employs the use of the survey questionnaire in order to collect pertinent data. The survey questionnaire method is defined as the solicitation of information using a document which contains questions that allow the research effective data gathering based on the existing literature already reviewed. In this study, the researcher makes use of the survey questionnaire so as to gather the perceptions of the respondents selected as regards target-based internet markets. 4.2- Population Definition Given the scope and title of this research, the main population that the researcher seeks to study is those who are citizens and residents of the People’s Republic of China. To ensure the validity and reliability of the research, it is important that the responses of the participants therein are applicable to the population it represents. In this sense, the targeted population is the frequent shoppers and clients of various stores in the People’s Republic of China, focusing on the main cities thereof, including Beijing and Shanghai. 4.3- Sample Size and Selection Procedure A total of one hundred frequent shoppers and clients of various stores in the People’s Republic of China were obtained. They were selected through the use of the purposive sampling method. According to Trochim (2006), the purposive sampling method is defined as the selection of the respondents based on the objectives of the study. In the same manner, the one hundred respondents were also selected based on the following criteria: (1) must be at least eighteen years old, (2) must be a resident or citizen of the People’s Republic of China, (3) must be aware of the concept of target-based internet markets and finally, (4) has consented to the participation in this research by filling out a consent and waiver form, as administered by the researcher. 4.4- Development of the Questionnaire and Pre-Testing The questionnaire employed by the researcher in this study has been developed by looking into previous studies conducted in relation to the behavior of consumers about target based internet markets. A total of twenty questions shall be included therein, comprised of both closed-ended and Likert-style questions in order to measure the behaviors of the consumers with respect to target-based internet markets and their preference for the same as compared with the untargeted ones. The developed questionnaire was also pre-tested by employing twenty respondents. The twenty respondents completed the questionnaire and the researcher subsequently analyzed the results therein. Upon discovery that this was able to measure the perceptions of the respondents, the questionnaire was thus administered to all participants selected. 4.5- Data Analysis Technique The data shall be analyzed using the Statistical Packages for the Social Sciences or SPSS. Descriptive statistics shall be used in the presentation of this, including Frequency and Percentage Breakdown, Min, Max, Mean and Standard Deviation. Aside from this, the data shall also be analyzed in relation to previous researches and studies conducted with respect to consumer behavior about target-based internet market in China. 4.6- Reliability, Internal Validity and Generalization of Findings As mentioned, the issues with respect to reliability, internal validity and generalization of findings were addressed through the conduction of a pilot study. Cronbach’s alpha shall also be computed in order to determine the reliability of the scales employed in this research. In addition, the researcher shall not uproot the respondents from their normal settings so as not to manipulate their responses. 5- Access and Ethical Issues To address access and ethical issues, the researcher shall undertake various steps. For instance, with respect to the issue of plagiarism, the researcher shall observe various referencing methods in acknowledging all materials used. In the same manner, the respondents shall be asked to fill out consent and waiver forms before participating in the research. Moreover, the respondents shall be rewarded for their participation in the study. 6- Time Table The study shall follow the time table below: 1 2 3 4 5 6 7 8 9 Gathering of Research Selection of Respondents Development of Questionnaire Pilot Study Administration of Questionnaire to respondents Data Collection Data Analysis Conclusion References Creswell, J.W. 2009. Research Design: Qualitative, Quantitative and Mixed Methods Approaches. CA: Sage Publications. Denzin and Lincoln. 2005. Research Methodology. CA: Sage Publications. Gordon, M.E. and De Lima-Turner, K. 1997. Consumer Attitudes towards Internet Advertising: A Social Contract Perspective. International Marketing Review: 14(5), pp.362-375. Hamid, N.R. 2008. Consumers' Behaviour towards Internet Technology and Internet Marketing Tools. International Journal of Communications: 3(2). Hopkins, W.G. 2000. Quantitative Research. Sportscience: 4(1). Luo, X. 2000. Trust Production and Privacy Concerns on the Internet: A Framework Based on Relationship Marketing and Social Exchange Theory. Industrial Marketing Management: 31(2),pp.111-118. Mastacan, A. n.d. Current Trends in Internet Marketing. CA: Sage Publications. Mehta, R. and Sivadas, E. 2006. Direct Marketing on the Internet: Empirical Assessment of Consumer Studies. Journal of Direct Marketing: 9(3), pp.21-32. Miletsky, J.I. 2009. Principles of Internet Marketing; New Tools and Methods for Web Developers. Morimoto, M. and Change, S. 2006. Consumers' Attitudes toward Unsolicited Commercial E-Mail and Postal Direct Mail Marketing Methods: Intrusiveness, Perceived Loss of Control, and Irritation. Journal of Interactive Advertising: 7(1). Shaver, D. 2007. Impact of the Internet on Consumer Information Search Behavior in the United States. Journal of Media Business Studies. Trochim, W.M.K 2006. Non-Probability Sampling. Accessed 04 May 2011 from http://www.socialresearchmethods.net/kb/sampnon.php "Ways of Approaching Research: Quantitative Designs." n.d. Accessed 04 May 2011 from http://www.fortunecity.com/greenfield/grizzly/432/rra2.htm Read More