The relationship between Internet marketing and customer buying behavior

Master's Thesis in Business Management, International Business Orientation

Winter 90

Abstract

The rapid growth of the Internet infrastructure introduced new opportunities and methods to do business to the whole world. Internet has made the world borderless. Producers, traders and consumers can now access the markets faster and get more information than before in the shortest possible time (Jaturavith, 2007). In general, the use of the Internet can be categorized into three main activities: dissemination of company information, implementation of electronic commerce, and business exchanges. The most prominent­ feature­ The Internet does not require intermediaries; Producers can sell their goods directly and easily through the Internet (Jatoravith, 2007).

Although there have been many researches about the relationship between Internet marketing and the buying behavior of customers abroad, there have not been very suitable models in this relationship in the country. It is obvious that examining the relationship between Internet marketing and the buying behavior of customers can help identify the possible reasons for their lack of acceptance of this way of shopping. This research examines the effect of internet marketing factors on the buying behavior of customers.

The present study was selected based on the initial model of Hakyo et al. in 2009 and after reviewing various researches related to this research, the mentioned model was changed and the factors of price and ease of purchase were added to it. which were selected randomly. In this study, descriptive and inferential statistics and tests such as the Kolmogorov test – Smirnov, binomial or ratio test, Friedman test, Mann-Whitney test and Kruskal-Wallis test as well as factor analysis were used.

The results of the tests stated that the variables of price, security and trust, internet marketing environment, product features and ease of purchase  It has had a significant effect on the buying behavior of customers on the Internet, and the variable of promotional offers has not been effective. Finally, suggestions such as increasing the level of security and trust, which has a direct effect on the variable of promotional offers, and causes this important marketing tool on the Internet to increase the desire of customers to buy online, were also presented. Also, the use of the price factor as a competitive advantage is also considered. Keywords: Internet marketing, customer buying behavior, online shopping.

Introduction

In recent times, the Internet has created a huge amount of excitement, as it has attracted the attention of the media, public and marketers. There are many reasons for the growth of the use of the Internet (not just retail) in recent times, such as its size as a source of information, its becoming easier for the user, and its accessibility increasing day by day and its cost decreasing (from Okas [1] and Finch [2], 2003). The interactive features of the web and the Internet give consumers the opportunity to purchase products more conveniently and efficiently, to be able to use the web remotely, and to save time and effort. The rapid growth of the Internet and the World Wide Web in the 1990s brought about electronic commerce and ensured the future of many companies (Hong [3], 1998). The Internet has created new markets for customers as well as organizations and has become a serious alternative to traditional shopping. The growth of internet shopping is a driving force to conduct more research in the field of consumer behavior and attitude. on the web and online business.

1-1 Statement of the problem

The emergence and development of the Internet has created new opportunities for marketers so that they can do their current marketing activities better. Internet marketing [4] is largely related to the characteristics of products and services. In addition, marketing through the Internet can be a great help in saving time and money to the overall marketing strategy.(Pan Western E-Commerce Team [5], 2005)

In the world of e-commerce, there are many factors that influence the decision and intention of the buyer through websites. Factors such as the lack of security on the Internet, the lack of trust of customers in virtual shopping and advertising, the quality of the site and its design, especially in providing product and product information, lead to the reluctance and mistrust of customers towards online shopping and advertising.

Nearly 72% of Internet users search for various products online at least once a month. But this internet search is never equivalent to shopping. The most important obstacle in this way is forcing people to try and use this method for shopping for the first time. This issue of how to improve and improve the quality of customers' buying behavior through the Internet and make them more interested in online shopping is a discussion that has attracted the attention of many researchers. If it is difficult for him to satisfy the customer, that customer will prefer to buy from other online stores or give up online shopping altogether. Due to various reasons such as the lack of proper infrastructure, low security and trust, product features and even the culture of using the Internet for shopping, it has not found its real place and has not been able to cause a great impact and increase the desire of customers to buy, and customers do not pay much attention to this type of purchase and have little influence from it, while many organizations and companies have turned to online sales in the Internet market in order to create many advantages for themselves in the age of information and communication. The buying behavior of customers has been done abroad, but few models have been presented in this regard inside the country. It is obvious that examining the relationship between Internet marketing and the buying behavior of customers can help to identify the possible reasons for their lack of acceptance of this way of shopping. 1-2 Importance and necessity of the topic The Internet has developed exponentially over the past years and today it is easily accessible in most countries of the world and has revolutionized and transformed many business behaviors of customers. Also, the Internet has been used to create and maintain relationships with customers through online activities [12] to exchange ideas, products and services. (Hakio[13]-Shamim[14], 2009)

In the shadow of the expansion of electronic commerce, many intermediaries, including wholesalers and retailers, have been eliminated. Without the need to be in the store, all products are available virtually, and the customer can see any product on the Internet, check it, find out its features, choose from suppliers and prices, and by pressing a few buttons, order and pay via the Internet. (Hakio [15] et al., 2009)

Today, with the introduction of new models, the traditional definitions of marketing have changed and it is necessary to pay attention to this issue with a new perspective. Marketing is one of the organizational systems or one of the most important processes of commercial organizations in order to achieve the goals and satisfy the needs of customers. This interactive tool has attracted the attention of experts and experts as an effective part in purchasing decisions and actions. (Supramanian [18], 2006)

As the use of the Internet expands, its use has become a strategic aspect for companies. Having effective communication with customers through the Internet is an important and vital aspect for companies, and most companies use websites as a communication tool. (Richard[19]-Chandra[20], 2005)

Internet marketing environment provides the opportunity for sellers to provide users with many intermediaries with various facilities for retail sales.