Answer

E-marketing influencing consumers’ purchase decision: luxury Industry

 

ABSTRACT

Luxury fashion is one of the fastest-growing and well-accomplished industries, with prominent organizations going through a double-digit progression in the last few years. The international luxury goods industry expects to grow from 285.1 billion dollars in 2020 to 388 billion dollars in 2025. The expectation is that online sales of luxury goods will overrun the brick and mortar stores. The purpose of this study is to look at the elements that influence customer purchase decisions through internet marketing. The dissertation will validate the associations between social media marketing and exploring the factors that influence the customer to decide between buying.

The model under study examined design operations and measurements using Structural Equation Modeling (SEM). The researcher implemented a descriptive cross-sectional analysis to examine how online marketing influences consumers’ purchasing decision of luxury products. The study concluded that three of the four behaviors influencing elements were significant and positive in explaining the consumer purchase decision-making process. The three elements are brand awareness, brand association, and emotional influence. The theory of reasoned action positively correlates with consumer purchase behavior but was not statistically significant in explaining consumer purchase behavior. Many people opt to purchase their luxury products online because of the security, convenience, safe deliveries, and ease of purchasing. Social media is more advantageous as an online marketing tool since it gives the companies a platform to interact directly with their consumers and get relevant feedback.

Keywords: Luxury products, structural equation modeling, brand awareness, brand association, reasoned action, emotional influence, descriptive cross-sectional analysis, and consumer purchase behavior.

 

Table of Contents

ABSTRACT.. i

1. INTRODUCTION.. 1

1.0 Background. 1

1.1.1 Luxury Industry in the United Kingdom.. 2

1.1.2 Decision-Making on Consumer Purchases. 3

1.2 Objectives of the Study. 6

1.3 Value of Study. 7

2. LITERATURE REVIEW… 8

2.0 Introduction. 8

2.1 Theory of Reasoned Action. 8

2.2 Brand Awareness. 12

2.3 Brand Association. 15

2.4 Emotional Influence. 19

2.5 Impact of Online Marketing on Consumer Behavior. 22

3. RESEARCH METHODOLOGY.. 24

3.0 Introduction. 24

3.1 Research Design. 24

3.2 Data Collection. 24

3.3 Sample Selection. 25

3.4 Validity and Reliability of Study Instruments. 26

3.4.1 Reliability. 26

3.4.2 Validity. 26

3.5 Data Analysis. 26

3.6 Measurement Development. 27

4. ANALYSIS OF DATA.. 29

4.0 Introduction. 29

4.0.1 Response rate. 29

4.0.2 Reliability Test. 29

4.1 Descriptive Analysis. 30

4.1.1 Consumer Purchase Behavior. 30

4.1.2 Brand Awareness. 30

4.1.3 Brand Association. 31

4.1.4 Emotional Influence. 32

4.1.5 Reasoned Action. 33

4.2 Regression Analysis. 34

4.2.1 Correlation Analysis. 34

4.2.2 ANOVA.. 35

4.2.3 Regression Coefficients. 36

5. CONCLUSION AND RECOMMENDATION.. 37

5.1 Discussion. 37

5.1.1 Effects of Brand Awareness. 39

5.1.2 Effects of Brand Association. 40

5.1.3 Effects of Emotional Influence. 40

5.1.4 Effects of Reasoned Action. 41

5.1.5 Effects of Online Marketing. 42

5.3 Conclusion. 43

5.3 Value of Research and Marketing Implications. 45

5.4 Limitations and Future Research. 46

REFERENCES. 48

APPENDICIES. 54

APPENDICE A – Questionnaire. 54

 

 

 

List of Tables

Table 4.1: Reliability Test. 29

Table 4.2: Descriptive Statistics. 30

Table 4.3: Frequency of Consumer Purchase Behavior. 30

Table 4.4: Frequency of Brand Awareness. 31

Table 4.5: Brand Awareness Cross Tabulation. 31

Table 4.6: Frequency of Brand Association. 32

Table 4.7: Brand Association Cross tabulation. 32

Table 4.8: Frequency of Emotional Influence. 33

Table 4.9: Emotional Influence Cross Tabulation. 33

Table 4.10: Frequency of Reasoned Action. 34

Table 4.11: Reasoned Action Cross Tabulation. 34

Table 4.12: Correlation Analysis. 35

Table 4.13: ANOVA.. 35

Table 4.14: Regression Coefficients. 36

 

 

1. INTRODUCTION

1.0 Background

Luxury fashion is one of the fastest-growing and well-accomplished industries, with prominent organizations going through a double-digit progression in the last few years. Luxury is a Latin word meaning superabundance, surplus in the way of life expectancy, or an exhibition of affluence designed at nourishing yearnings that go beyond actual needs. Sombart argues that luxury is any expenditure that surpasses what is essential (1967). The concept of luxury, therefore, is closely associated with human needs. However, a proper characterization of luxury relies on the precise time and society under examination and varies within these features.

The international luxury goods industry expects to grow from 285.1 billion dollars in 2020 to 388 billion dollars in 2025. However, the 2020 revenues will decrease sharply paralleled to recent years due to the effects of the COVID-19 pandemic (Statista, 2020). The expectation is that Asia will witness the uppermost spending after China’s recovery, then Europe, North America, South America, Middle East, and Africa. Online sales of luxury goods will overrun the brick and mortar stores. As much as the luxury industry is growing in online sales globally, the physical store’s significance continues to escalate. Several industry players continue to open physical stores to improve brand acceptability, develop local community engagement, grow traffic to their e-commerce stores, and give the touch and feel that they lack in an online store.

The luxury industries’ common trends increase spending across all segments, namely luxury cars, luxury cruises, personal luxury products, fine wines, fine art, private jets and yachts, fine food, and luxury hospitality. Eighty percent of spending was on hospitality, personal products, and cars. Expansion in critical regions and markets with Europe showing the tremendous increase, millennials influence the industry by redefining and growing the market, and growth in online sales over the recent years has increased and grown the luxury industry.

The luxury market faces several volatile encounters that may change the projections for 2020. According to (Danziger, 2019) the personal luxury products market advanced through five significant stages of growth, democratization (2001 – 2007), predicament (2008 – 2009), Chinese shopping frenzy (2010 – 2013), restart (2015 – 2016), and currently the new normal (2017 forward). The new normal stage will continue into 2020 and will experience moderate growth ranging from three to five percent. The Asian markets will drive most of the growth. The challenges will hit the specific markets differently, depending on their exposure in the luxury market, but the overall consequence may be international. Events such as Britain’s exit from the European Union, which is the fifth-biggest economy globally, and the upcoming United States presidential elections, the world’s largest economy, have affected the luxury industry. The most significant challenge and effect on the luxury industry is the global COVID-19 epidemic. This epidemic saw the closure of several businesses, people losing jobs, and the global markets experiencing losses on a large scale.

1.1.1 Luxury Industry in the United Kingdom

Britain is a common, fundamental core for luxury because of its conventional consumer base, its collection of creative talent, and the tradition of many British luxury products. Mainly, London is a fashion center; it is home to one of the four most important fashion weeks with a differentiated academic system across design, fashion, and arts. London’s commercial flows make it one of the international financial investments, with several affluent customers and tourists (Berg, Brantberg, and Zaharleva, 2016).

Over fifty percent of the United Kingdom’s populace shop online and this number will rise to 29.6 percent between 2019 and 2024 (Williams, Williams, and Williams, 2020). Walpole, the British luxury sector’s trade organization that counts for over two hundred and fifty of the United Kingdom’s premium luxury products among its membership, showed new figures displaying sales have grown by forty-nine percent from 2013 to 2017. The UK luxury industry is worth 48 billion euros to the county’s economy, with exports reaching up to 38 billion euros and one hundred and fifty-six thousand people employed in the sector. In its report, Walpole indicated that the sector will continue its growth promptly in the intermediate-term and predicts the value of sales for 2024 to reach 65 billion euros.     

E-commerce is one of the effective methods for building a brand. Given the issues of brand control and discriminatory dissemination, e-commerce has become vital. The United Kingdom has the uppermost infiltration of online luxury sales internationally. The UK matches France and Italy’s online reach at only eleven percent, and there is room for growth in the years to come. The online marketing values in the United Kingdom are exceedingly competitive within luxury products because it tolerates progress in business effectiveness and builds a new conduit trade leading to relaxed and more directed reach to more pertinent customers. The growth of online marketing has effectively changed how luxury companies communicate with their consumers. In many ways, established companies have incorporated modern connectivity to remain relevant and not left behind. Internet advertising’s expenditure increased by fourteen percent to 11.5 billion euros in 2017 (GOV.UK, 2020).

1.1.2 Decision-Making on Consumer Purchases

Several factors can drive a consumer to purchase a given brand over the other. These factors can be brand association, ease of buying a product, emotions, brand awareness, and reasoned action.

Brand awareness

A consumer’s ability to recognize and remember a brand, as shown in their ability to identify the brand under diverse conditions and link the brand symbol, logo, and name to specific memory associations, defines brand awareness. Developing brand awareness is an essential step in endorsing new merchandise or revitalizing an older brand. Preferably, awareness of the brand may comprise the abilities that differentiate the product from its rivalry. Services and products that uphold a high standard of brand consciousness are likely to make more transactions. Customers antagonized with selections are more likely to purchase a known name brand merchandise than unaccustomed brand merchandise. Internet users spent twenty-seven minutes on Instagram, twenty-six minutes on Snapchat, and thirty-eight minutes on Facebook daily in 2019 (Kopp, 2020). With these figures, companies are sponsoring their brands through these online platforms. These platforms help them since customers generate discussions regarding the services and products they use and like. The primary brand awareness methods in use currently are advertisements on Instagram and Facebook.

Brand association

Brand association is how a consumer relates to a particular brand of choice. It involves the client’s fancy, features of the merchandise, and the brand’s customs, business relations, and individuality (Jung and Sung, 2008). Brand relation comes from the preceding involvements of a buyer using an exact brand. A consumer may be interested in a particular brand product because his/her favorite celebrity of personality is using the exact brands. For example, a football fan may choose to wear Nike over Adidas because their favorite footballer endorses Nike. The brand association contains all brand-related images, emotions, attitudes, perspectives, ideas, perceptions, and opinions (Kotler and Keller, 2006). A company needs to build a strong association between its brands and the customer, and online platforms such as Instagram, YouTube, and Facebook makes it much more comfortable and convenient.

 

 

Emotional research

Research has indicated that emotions can link the relation of a brand to a consumer. This relation provides benefits to the brand since people’s feelings influence their purchasing of luxury products. A brand’s strength increases by a customer’s emotion. Different individuals handle emotions differently, and they build a perception that their self-image should reflect their environment. This perception is also essential when a consumer is deciding on the brands to purchase. A customer will not purchase a product if they feel it does not appeal to their perceptions or emotions. Emotions influence a buyer’s ability at some point in time in as much as many people may dispute the fact. Most Luxury product purchases were on impulse, and the buyer did not intend to purchase the product at that particular point. This condition is because emotions drove their will to buy the product. Most human decisions are a combination of the logical left and the right emotional brain in decision-making. 

Theory of reasoned action

 This theory suggests that in the process of decision-making, consumers’ focus is on pre-existing attitudes. The theory’s principle is the expectation of a consumer experiencing a similar or specific result since they are always sensible performers who decide to act in their paramount interests (Fishbein and Ajzen, 1975). An individual’s intention to perform a specific behavior depends on subjective norms and social pressure, which always come from the perceptions about what other people will think of them. Before a customer purchases a luxury product, he/she will first consider how the product will look on them or how the previous product from the same brand looked on them. It will also be of great concern to customers how other people will see them on the brand.

 

 

Online marketing in the luxury industry

The world currently is a technology village, and businesses should change and introduce dynamic quality services in the modern world. Internet technology has a vast reach globally, discards borders, and unites the world on a single platform. Internet marketing has dramatically changed business models worldwide, and several businesses are changing to exploit this excellent venture. The significant benefits of online marketing are reduced costs such as rents and business permits and cuts in time for buyers and sellers. Nowadays, many people research and explore on their own and do not rely on marketers from companies. Hence a company needs to have a significant and relevant presence on the internet for its identification by consumers.

Online marketing has a colossal objective audience with its ability to cut costs, reduces time wastage for clients, and upsurge revenues. The internet conveniently avails this target audience for the companies to exploit. The conventional and old individuals who have not embraced technology or do not know how to use technology can feel internet marketing secludes them. Some clients prefer the touch and feel that is experienced in the brick and mortar stores. These two client bases cannot experience and enjoy online marketing as the millennials do, and frankly, these groups have the most money to spend. Companies should embrace technology and online marketing, but at the same time, keep and improve the brick and mortar stores to capitalize fully on different clientele.  

1.2 Objectives of the Study

The study of the luxury industry majorly associates with the determinations behind consumption. Online marketing has a significant influence on brand equity creation and consumer behavior towards luxury brands. The luxury industry entails hospitality, luxury goods, and luxury cars accounting for more than eighty percent of the market. Each year the industry grows by at least eighteen to twenty percent. The purpose of this study is to look at the elements that influence customer purchase decisions through internet marketing. The dissertation will validate the associations between social media marketing and exploring the factors that influence the customer to decide between buying. The research, however, contains elements of online marketing encouraging and affecting consumer purchase decisions.

The objectives of the research include,

• To identify the attributes of the consumers’ willingness to purchase online
• To explore customer attitude towards luxury brands and exploring viewpoints towards online marketing luxury brands
• To determine the factors stimulating the online marketing purchase decision focusing on individuals shopping online.

1.3 Value of Study

Policy architects would profit from the research by knowing the worth in the application of strategies. This policies’ target is to improve and streamline the marketing sector. They will also profit from information on the variations and undercurrents suitable for the retail sector comprising the consumer reactions. Policymakers would consequently benefit by accepting the progress in planning applicable policies and guidelines that would guarantee the actual application of pertinent laws. Investigators would profit from information on the influence of electronic advertising on consumer buyer activities.  The results would enlighten the scholars regarding collected works and theoretical basis and suitable research techniques in caring out comparative research in the future.

 

 

 

 

 

 

2. LITERATURE REVIEW

2.0 Introduction

This literature review intends to evaluate evidence-based explanations of online marketing’s influence on consumers’ purchasing decision-making process. The review illustrates factors affecting brand awareness, brand association, internet marketing, emotional research, the theory of reasoned action, ease of purchase, and cultural influences. The literature review yielded many articles. After filtering and screening the articles, common themes emerged and were used to develop the final literature review.

2.1 Theory of Reasoned Action

Customers purchase luxury fashion products to equal their living standard, hence nourishing their inner motivations (Amatulli and Guido, 2011). This paper intends to examine the underlying determining factor of the acquiring objective for fashion luxury products. The study conducted forty exhaustive dialogues with Italian consumers in a fashion luxury products shops in Italy. The authors used qualitative research in data gathering, the laddering method, and the means-end chain analysis. The categorized assessment map subsequent from the data gathering and amplification establishes that self-assurance and self-satisfaction are the foremost unseen ultimate standards when purchasing and utilizing luxury goods. Consequences for marketers relate to modifying merchandises, brand principles, and interaction messages to the idiosyncratic, self-gratifying, and suppressed consumption pursued by customers. The paper bases its involvement on exploiting the laddering method and the means-end chain analysis for examining dormant elements of buying objectives for fashion luxury products. Furthermore, the research investigates this theme in the Italian industry, which signifies a significant established market for fashion luxury products. 

Clients develop the individual substance of any luxury product of service established on their value discernments (Chattalas and Shukla, 2015). This study weighs the impression of essential observations on luxury utilization and acquisition objectives concentrating on two of the most prominent luxury markets having noteworthy referent stimulus on customers globally, namely the United Kingdom and the United States. The study uses a cross-sectional survey and structural equation modeling to gather and analyze data in its methodology. The study results submit that while purposeful value discernments motivate luxury consumption and buying purposes across both countries, the social worth has a meaningful involvement only among United States clients and personal worth observations only in the United Kingdom. The findings give company managers openings for premeditated diversity and brand setting of their luxury products in a cross-country context. The results illustrate that while the United States and the United Kingdom remain alike on most international traditional qualities, consumer worth insights differ suggestively. Therefore, it advises a warning methodology in creating comprehensive expectations using countrywide level social pointers at consumer level decision-making.

Research on social values impressions shows that clients’ selections and their opportunities of others’ selections in consequence codependent circumstances fluctuate as an occupation of the burden they characteristically allocate to their personal and others’ consequences (Tynan, McKechine, and Chhuon, 2010). Luxury product buyers acquire merchandise, conferring to what significance they have on them, and adherents of their social orientation groupings. Their actions are prone to burdens of social standards and socialization opportunities concerned with establishments such as those ascending from family and other orientation groups (Shukla, 2012). The account of luxury utilization is deeply entrenched in the concept of social stratification. One of the imperative encouraging forces that affect a wide assortment of customer performance is the ambition to achieve prominence or social reputation from the procurement and utilization of luxury goods. Such social worth driven inspirations were noticeable across exceedingly characteristic as well as collectivistic philosophies. Luxury brands buying can be for personal causes as a self-incentive or outward motives as an indication of wealth. Individuals can or cannot display these luxury products publicly.

Whereas academics have anticipated strong connotations between social value discernments and luxury utilization, one of the developing opinions in luxury utilization is the significance of personal worth discernments (Tsai, 2005). Several authors reason that individualistic value insights of shoppers establish a non-unimportant fragment, necessitating much additional research. While the social value associated research controls the luxury utilization literature and overlooks personal value insights. An accumulative number of clients utilize luxury merchandise to promote self-absorbed hedonic understanding and figurative profits to the self. Such benefits are extraordinarily individualistic and, in distinction, apprehensive about recognizing their internal self with the merchandise, achieving a comforting familiarity from the luxury merchandise, and equal their tastes to the product’s excellence. Personally concerned buyers seek to gain self-focussed inclination from luxury utilization by focusing on the accomplishment of hedonic indulgence and self-consciousness rather than agreeing with others’ opportunities and hypothesizing of individual-sloping utilization as complementary to the inspirations of collectivistic clients, who are less likely to put prominence on accomplishing personal objectives to improve self-appearance. It follows that in personalist communities such as the United Kingdom and the United States of America, personal worth insights may have a predominantly strong impression on luxury utilization. In this perspective, the materialism and hedonic features of oneself can become more prominent. Reliant on the distinction in consumer character disposition, one feature, i.e., external and internal. Decision-making may articulate one feature over the other. Customers uninterruptedly try to attain a steadiness between these two features by concentrating on acceptance with the internal self (Wiedmann, Hennigs, and Siebels, 2009).

In as much as luxury products’ utilization is for their private and social value insights, it is vital to recall that each product’s design is to accomplish precise tasks to fulfill customer needs. (Wiedmann, Hennigs, and Siebels, 2007) recommends that clients anticipate a luxury merchandise to be of noble quality, functioning, and exclusive enough to fulfill the client’s impulse to segregate. Researchers have defined usability in two ways: efficiency of use driven by independent presentation and simplicity of use driven by independent valuations. Thus, buyers can link luxury merchandises with loftier brand excellence and hope to collect more worth from such utilization.

Subsequently, increasing purposeful value may forecast higher insights into a luxury merchandise’s monetary value over time. For instance, the luxury timepiece company Patek Phillipe promotes itself as an inter-generational asset that the current generation should take care of for the next generation and the contrast to self-focused indulgence. Similarly stirring away from noticeable utilization and emphasizing long-lasting and distinctive artisanship, Hermes concentrates on promoting exclusive but enduring merchandise with extraordinary practical effectiveness that will sustain a generation. As a product’s exclusivity escalates, its worth escalates and enlightens a person’s societal grading status. However, researchers advise that limited information is available regarding the impact of functional features on luxury consumption, inviting additional experimental analysis.

This dissertation analyzes why reasoned action is one of the behaviors that influence consumer purchase of luxury products. Several studies indicate that a client’s prior experience with a brand can influence the client to purchase the brand. Also, perceptions, be it personal, functional, or social, influence a consumer’s behavior in the purchase decision-making process.

2.2 Brand Awareness

The limited proof is present on how social media advertising events promote brand awareness formation and customers’ conduct concerning a brand (Godey et al., 2016). This article investigates these associations by evaluating innovator products in the luxury industry, such as Gucci, Dior, Louis Vuitton, Burberry, and Hermes. The study appraises eight hundred and forty-five luxury brand customers, including Indian, Italian, Chinese, and French, who track the five luxury merchandise under study online. The authors’ design an operational equation framework that aids in looking at the shortcomings in preceding social media imprinting literature. The research explicitly illustrates the association between internet marketing determinations and their significances, such as loyalty, brand preference, and price premium. It further weighs products’ social media marketing as an all-inclusive perception that can combine five characteristics: interaction, customization, trendiness, word of mouth, and entertainment. Another input of the research is that it identifies that small, medium, and micro-enterprise has a vast constructive influence on brand image and awareness.

Social media gives marketers an extraordinary occasion to get customers in their social groups and enables marketers to develop a more special relationship with the clients (Kelly, Kerr, and Drennan, 2010). Social media marketing has altered the process of brand creation, consumption, and distribution. Social media is shifting the power to outline brand images from dealers to customers’ content and connections online (Tsai and Men, 2013). Social media has a significant part in a brand’s victory or failure. For instance, Louis Vuitton displays videos of its runway performances on its Facebook page, giving its entire fan base the chance to enjoy the show and at the same time market the designs. Burberry developed an online shopping site for its Chinese customers, giving twenty-four-hour customer services via online chat structures. Burberry has increased its presence on the Chinese social media Weibo from ninety thousand to one hundred and eighty thousand followers. Hermes launched an interacting social website, J’aimemon care, which translates to” I love my scarf.” The website is a commitment to its autograph square scarfs. The website links to its Facebook page and displays young girls wearing scarves as a bra, turban, around the neck, and as belts.

Epicurean standpoints see social media consumers as fun chasers who are being entertained and interested and feel gratification (Manthiou, Chiang, and Tang, 2013). Many studies have identified entertainment as a significant inspiration for social media usage. For example, the author Shao finds entertainment a resilient incentive for overwhelming user-generated content (2009). Individuals use social media to view brand-related content as pastime, relaxation, and enjoyment. Escapism and relaxation drive content, which are the two main reasons why people seek entertainment.

Social media interaction is a vital motivator for creating user-produced information (Daugherty, Eastin, and Bright, 2008). Online marketing can give customers support and space for deliberations and altercation of concepts since many people commenting on branding associated social media podiums meet similar people with same ideologies and intermingle with them regarding given merchandises and products. Depending on the nature of interaction and communication, social media can be in two forms content-based and profile-based. Content-based social media emphasizes on the subjects, commentaries, and deliberations on the posted content. The main aim of information-based social media is to bond with the idea a given profile delivers, such as YouTube, Pinterest, Flickr, and Instagram. Profile-based social media emphasizes discrete followers. Topics relate to the followers, and they inspire the linking because they are concerned with the user in the profile. Profile-based social media’s main aim is to embolden its followers to link with the target topics. Profile-based social media platforms include WhatsApp, Twitter, and Facebook. Therefore, companies should be active and open in discussions, upload unique content, be helpful with practical matters, and reflect their followers’ profiles to promote interaction.

To access the up-to-date hot debates, essential product search conduits, and news topics globally, individuals currently use social media (Naaman, Becker, and Gravano, 2011). Several people move to various social media platforms to get data, as they view them as more dependable than the old-fashioned advertising undertakings that companies sponsor. Trendy information on social media entails four sections: familiarity, motivation, pre-purchase evidence, and scrutiny. Familiarity refers to brand-related data that customers gain from other consumers’ awareness and proficiency to get more knowledge about a specific brand. Pre-purchase evidence shows product appraisals on brand societies so that customers can make proper-measured purchasing decisions. Scrutiny entails viewing and remaining about a customer’s social surroundings. Motivation finally describes a customer’s following brand-concerned data and obtaining new ideas about the information serving as a foundation for motivation. For example, customers view pictures of other individuals’ clothes for concepts regarding their wear.

The customization level illustrates the amount to which a facility is customized to fulfill a person’s inclinations (Schmenner, 1986). Through brand customizations, companies can build vital brand faithfulness, like-mindedness, and prompt individuality with their consumers. There are two types of customizations depending on the message and customization level: a broadcast and a customized message. A broadcast entails communications that mark anyone who is fascinated, such as tweets from Twitter. A customized massage focuses on a small audience or a given person, such as Facebook posts. An example of customization is when Gucci and Burberry use their internet platforms by posting tailored communications to specific clients and empowering them to modify their products.

Social media relays electronic word of mouth with online customer-to-customer exchanges concerning brands (Muntinga, Moorman, and Smit, 2011). Studies show that electronic word of mouth has greater empathy, relevance, and credibility for consumers than the company created information sources on the web. Social media is a critical piece of equipment for the electronic word of mouth because customers create and broadcast information to their peers, acquaintances, and friends without constraints. Investigators can examine the usage of electronic word of mouth on social media via three perceptions: idea seeking, idea giving and idea passing. Customers with a high standards of idea giving behavior, influence consumers’ attitudes and behaviors, while individuals with idea pursuing conduct are inclined to look for evidence and guidance from other consumers when making an acquisition choice. Opinion passing is a precise representation of the electronic word of mouth that expedites the stream of information.

This research investigates consumer purchase behavior and identifies brand awareness as one of the behaviors that influence this habit. The relevant reviews on the influence of internet marketing on brand awareness are positive. Internet marketing is an essential tool that brands can use to reach their consumers and grow their brands globally through social media advertisements and endorsements.  

2.3 Brand Association

 Experts considered retailing fashion online improbable to flourish in the beginning of e-market since individuals want to feel and try on apparels and the collective knowledge related to clothes buying for females (Rowley, 2009). Nonetheless, the capacity for clothes and shoes sold online has increased progressively, and online profits for fashion merchandises have been rising between twenty-five to thirty percent yearly since 2000 (IMRG, 2006). This study reports on experimental exploration that targets internet branding and techniques in which online conduits support fashion brands. The concentration of this study is the leading several channel United Kingdom, fashion dealers. The study used content analysis on several websites leading clothing and fashion dealers and three supermarket chains with a full manifestation of clothing trading methodology. A scrutiny of the degree to which the vendors were exhausting their website to deliver internet services and material gave a framework for a more comprehensive examination of online branding approaches, comprising interactive brand distinctiveness and existence, and constructing brand associations. The results from the research revealed that leading non-significance fashion dealers provide dealings via their websites. They offer prolonged prospects for brand commitment and involvement. All fashion retailers gain dependability of graphical uniqueness between the internet and other platforms. Their utilization of internet platforms to converse brand standards and stimulate brand interactions is not adequately developed. There is proof of some groundbreaking practice and an opportunity for substantial additional expansion of online marking conception. Studies into internet and multi-channel marking have a part to play in assisting this development. This study contributes to the understudied expanse of online branding by studying top multi-channel United Kingdom fashion dealers’ online branding undertakings.

Several studies in the online fashion transaction sector have been troubled to understand shopper actions, containing online shopper individualities’ credentials and the inspection of cross-platform shopping conduct (Goldsmith and Flynn, 2004). A study on online clothing acquisitions’ interactive and emotional motivators revealed that being a courageous online purchaser and a substantial directory consumer had the most remarkable impression on cloth purchasing. Recent studies have shown that customers’ decision-making methods of United States college students online indicated that online buyers were brand cognizant, self-indulgent shoppers, a brand dedicated, impetuous, fashion sentient value-conscious (Cowart and Goldsmith, 2007). There is proof that brand awareness and familiarity could sway commitment with the online platform and awareness with brands accessible online, combined with preceding involvement of purchasing online predisposed discernments of the danger connected with buying online and purposes to buy online.

Many authors have submitted that the ideologies of branding have transformed marginally because of the online platforms. Internet marking requires constructing on and assimilating with branding via other platforms (Rubenstein, 2002). Branding can initiate with developing and cataloging brand marks, logos, and straplines. They can also build brand presence and awareness. Long-term branding is the progression of building significance over establishing a convincing and dependable proposition, which is brand promise supported by a constructive consumer familiarity that will fulfill consumers’ needs and inspire them to come back. This opportunity avails a chance for creating brand associations that will bring recurrence trade, combine the brand locating, and make it more challenging for opponents to introduce a contest and permits the business to impose special prices. The internet is an applicable stage over which to advance and conserve relationships with clients. Loyal marketing techniques comprising rewards, loyalty arrangements, two-way discourse, online brand societies, and operational customer services and service reclamation appliances are an imperative characteristic of brand construction (Cuthbertson and Bridson, 2006).    

A study by (Camiciottoli, Ranfagni, and Guercini, 2014) on brand associations’ exploration showed the manifestation of distinguishing brand-related ideas that shed more light on how to blog contributors apparent brand features. The study resolves to recommend a new methodology to examine brand relations. The study purposes explicitly to display analysis and identification of brand associations in the internet community of global customers of fashion to identify the magnitude of corresponding with organization-demarcated brand relations. The method used by the researchers divides into two, assimilating quantitative text quarrying with qualitative market research methods. The method application illustrated categories and insights of brand relations amongst fashion internet users with three major fashion firms in Italy. Likened to brand relations gotten in company produced texts to weigh the magnitude of equivalence made. The findings revealed dependable brand relations across the three brands and considerable matching with company definite product relations. Company managers can use the techniques illustrated by the study to recognize and strengthen promising brand associations among consumers. The authors recommend an interdisciplinary methodology to examine brand relations in online societies. It combines text quarrying and computer-aided documented analysis as methods copied from the arena of linguistics, which has so far seen the minute presentation in marketing research but can deliver essential perceptions for calculated brand management.

The study carried out by (Ryding et al., 2016), whose purpose is to investigate modern buyer contentment motivators for the luxury clothing area in three proportions digital in-store communication, service excellence, and merchandise value. The research strengthens the significance of the proportion for brand building and the general multi-sensory understanding. In its procedure, the research uses a quantitative technique to inaugurate the optimum influence on the consumer. It uses an online questionnaire to collect data for the United Kingdom market. The research results show that service quality overlooks client contentment across the vital proportions and graded exceedingly and in corresponding order are product artisanship and plan, republic of source, and in-store digital interest. The luxury fashion industry has seen an evolution in several accounts, including improving and adjusting old luxury with tradition while new luxury evolving using modern-day technology (Okonkwo, 2007).

This dissertation investigates consumer purchase behavior and identifies brand association as one of the behaviors that influence this habit. The relevant reviews on the influence of internet marketing on the brand association are limited but positive. Internet marketing is an essential tool that brands can use to reach and interact with their consumers and form long-term associations with specific consumers to grow their brands globally through social media advertisements and endorsements.

2.4 Emotional Influence

The research was done by (Asshidin, Abidin, and Borhan, 2016), whose primary intention is to investigate the impact of supposed emotional and quality worth that influence a client’s intent to buying American and local products. The research objective is to expand understanding of Malaysian customers buying target in connection to American against indigenous merchandises. This study gives important insights on how the resident Malaysian customers recognize imported luxury goods. Furthermore, the research is significant compared to the indigenous dealers, manufacturers, and government to build proficiency and intensify superiority and re-establish product characteristics to be more pleasing to suppress rivalry with other retailers’ domestic producers. Correspondingly, the study hopes to back a given point of awareness among scholars concerning customers’ buying behavior in Malaysia. Two hundred and seventy university students, both undergraduate and postgraduate chosen, randomly answered questionnaires. The sample excluded international learners since the study’s focus was on associating local and American products. Analysis of data done using reliability, correlation, and descriptive analysis. The consistency findings of this study illustrate all mechanisms used for determining numerous variables were dependable. The correlation analysis showed an excellent important relationship between supposed quality and emotions concerning purchase purpose.

Emotional significance is the profit derivative from the feelings or sentimental states such as pleasure or enjoyment, which a brand generates (Sweeney and Soutar, 2001). In the third world, countries link imported brands with meanings such as status and wealth, which improve the emotional incentive such as the sense of preference and joy on consuming these products. A growing quantity of customers buy brands to fulfill their emotional requirements (Kumar, Lee, and Kim, 2009). Clients who feel content with the buying of a brand may buy the similar brand even when given other choices to pick. Emotional significance to a brand relays positive feelings on using this brand, which escalates customer trustworthiness. Emotional value is the benefit that an individual gets after undergoing something dissimilar or new. There is a constructive impression of emotional worth on clients’ acquisition purpose, comprising the emotional value that customers acquire from pleasurable and amusing involvements.

The procedure for building an emotional association is intricate and encompasses several contradictory influences. Feelings, moods, and emotions have the maximum inspiration on a person (Ekkekakis, 2008). According to Damasio’s (1994) theory, a characteristic circumstance commences with assessments and opinions about the provocation. This psychological action activates a bodily reply, which is emotion. Damasio reasons that these emotions are critical in the decision-building progression and the type of action, which is behavior. The primary conception that originates at the fundamental of policy and emotion is familiarity. Familiarity is reliant on two conspicuous restraints philosophy and psychology (Demir, 2008). Planning for an experience goes past usage of a product and needs considering the user wholly as a sensitive, thoughtful, and enthusiastic individual (Jordan, 2000). Experiences present a new financial contribution that materializes as the next phase after merchandises, services, and products, a development called advancement of economic importance (Pine and Gilmore, 1998). This new phase builds a new handle to produce worth for the company and the consumer.

Valentim and Vale’s (2020) study focuses on emotional familiarity in developing economies’ luxury circumstances. Currently, client research texts lack customer emotions studies in developing markets, excluding some relevant studies on China’s emerging utilization. It reports a methodical literature appraisal of luxury and client emotions targeting, representing the leading tendencies of study on this topic. The principal procedure in these studies is measurable against qualitative and, at times, mixed. The research contemplates several qualifications of feelings, environmental inducements, such as brand awareness, the physical characteristic of the merchandise, and non-environmental inducements such as eminence of service and commodity quality. The settings of research of customer emotions are accessible. Lastly, the authors also recognize the research commenced in emerging economies.

The conventional supposition in consumer exploration is that customers buy counterfeits primarily because of their low costs; counterfeits’ profits overshadow the costs. Conversely, feelings can be a resilient motivation force that encourages people’s decisions and stimulates individuals’ developmental responses (Zampetakis, 2014). This paper intends to build a client classification based on proficient emotions through non-dishonest counterfeit utilization circumstances, which could be beneficial for community strategy architects, vendors, and anti-fabricating service benefactors trying to formulate approaches to constrain the issue of forgery consumption. The methodology used in the paper involves a questionnaire examination of a sample of three hundred and twelve indiscriminately selected shoppers. Surveys were administrated independently to shoppers via individual contact by the researchers. Research data analyzed in three stages descriptive analyses, analysis of variance, and hierarchical cluster examination. The conclusions propose that buyers go through complex emotions throughout non-misleading counterfeit utilization circumstances, comprising negative and positive effects.

Additionally, four different subcategories of shoppers experienced comparative precise, but different emotional responses. The described study depended on self-accounts and a subset of Greek customers. Furthermore, data were cross-sectional, and substitute associations may be existent. Future studies should be cosmopolitan and longitudinal to test the contemporary study conventions and incorporate variables of authentic emotions felt during non-illusory counterfeit intake circumstances. Findings further suggest that four different subcategories of shoppers went through comparative precise but diverse emotional responses. As an outcome, the research may help dealers and anti-forging service workers create more advanced and operative promotion techniques.

2.5 Impact of Online Marketing on Consumer Behavior

Online marketing is the promotion of services and goods via the electronic instrument. Online marketing is the modern way of marketing that technology dominates (Lodhi and Shoaib, 2017). The growth of innovations in the business promotion fluctuates from print and billboard advertisements to more internet marketing platforms and the strategy. The objective audience is detailed with the extraordinary upsurge of internet marketing, internet purchasing, and retailing online businesses’ internet plan. Modern companies focus on developing the websites for promoting their merchandise other than displaying commercials on television, newspapers, publications, and billboards.

Online marketing is the prospect of advertising; it is fast, cheap, and give timely and dependable information. This study illustrates that eighty to ninety percent of individuals are fascinated with virtual announcements through social websites since social network consumers are not explicit to age or sex. Everybody can view their preferred advertisement on their Instagram, Twitter, and Facebook pages. Millennials are purchasing merchandise mostly after viewing internet advertisements and not from reading magazines, newspapers, or viewing television. Customers currently are not loyal to brands anymore, so with the aid of internet advertising, companies bring up to date their services and merchandises to sustain allegiance with their consumers. To stay relevant in the modern business society, companies are adopting online selling, online buying, and online marketing. Internet banking makes online purchasing easier through ATM cards, mobile marketing, and bank applications installed on mobile phones.

Online advertising is the best accomplishment element for modern marketing corporations. A decent basis of picking up general global marketing via online platforms is by posting commercials on Instagram, YouTube, websites, Facebook, and E-mail. The advertisements are suitable for business announcements and customer purchasing services, and merchandises advertisements. For the superior achievement of any industry, corporations are swiftly implementing an e-marketing strategy of announcement since they have seen the extra incentive in online marketing rather than their usual conventional advertising techniques. Because of the increase in online marketing, buying, and selling with online banking, companies adopting online advertising achieve more success.   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3. RESEARCH METHODOLOGY

3.0 Introduction

Determination of validity, reliability, and factor analysis was achieved using the Statistical Package for the Social Sciences (SPSS). The model under study was examined using Structural Equation Modeling (SEM) to develop the operational and measurement designs. Structural Equation Modeling is a group of statistical processes for looking if gathered data are dependable with a theoretical design (Kline, 2011). It is a mixture of factor analysis, multiple regression analysis, and path analysis, and it is useful to investigate the structural correlation between latent constructs and measured variables (Tenenhaus et al., 2005).

3.1 Research Design

William (2006) describes research design as a comprehensive design to combine different study components flawlessly and coherently to ensure that experiments under research are successfully addressed.

For this study, the researcher implemented a descriptive cross-sectional analysis to examine how online marketing influences consumers’ purchasing decision of luxury products. Cross-sectional research is an observational study that analyzes data of variables collected at a given time in a sample population. The descriptive analysis comprises information gathering via a questionnaire or interview with a population sample.

3.2 Data Collection

Data was collected by the use of an online structured survey. The online survey is useful because of the low cost and high usability to increase the response rate. Since the study’s purpose was to determine the purchase decision-making process of consumers’ luxury products, the questionnaire was developed using the factors around brand awareness, brand association, emotional influence, and reasoned action. The participants were asked if the factors affected their decisions during the buying of luxury products.

Data collection involved two types of data qualitative data and quantitative data. The researcher collected qualitative data through google scholar, where the analysis reviewed journal articles, newspaper articles, and online blogs. The process looked for relevant themes in these peer-reviewed articles to identify online marketing of luxury branding influencing the consumer buying decision. 

Quantitative data was collected by the use of a survey and focus groups. The survey intended to acquire explicit opinions, attitudes, and facts concerning luxury goods and luxury goods’ online marketing. The survey data helped to gain a deeper understanding of the people who are influenced by the online marketing of luxury brands and what influences their buying decisions.

The researcher conducted a focus group to understand better the customers’ opinions concerning their shopping characteristics, and they were influenced by internet marketing. This data helped in exploring consumer habits in depth. The focus groups underwent a pre-screening test to ensure homogeneity and relevance.

3.3 Sample Selection

For the sample selection, the researcher used a self-managed questionnaire developed and disseminated using google forms to a sample of consumers online. The model chosen was of United Kingdom consumers who are over eighteen years of age. The customers were accountable for completing the task and were asked to fill in the questionnaire. The sampling obtained one hundred and eighty-six questionnaires of active internet users and purchased luxury brands. The data did not find sex and age configuration to be significantly different from the population figures. The most significant proportion of respondents were aged 24 to 50. The sample obtained represents the general population of internet consumers in the United Kingdom.

3.4 Validity and Reliability of Study Instruments

3.4.1 Reliability

Cronbach’s Alpha technique was used to examine the result’s reliability, which was a derivative from a measure based on the relationship between the variable of the study referred to as the internal consistency. To analyze the data’s dependability, SPSS was used, and Cronbach’s alpha examined general scales’ consistence of the current and preferred state.

3.4.2 Validity

Validity is the degree to which data gathered from different mechanisms expressively and precisely signifies the theoretical perception and how it symbolizes the variables. Upon confirmation of validity, any results gotten from such data are meaningful and accurate. To institute the validity of the test, a pilot study was conducted. This helped identify any issues with the interviewing tools and have the problems resolved in advance of the real research.

3.5 Data Analysis

Data gathered was organized, screened, cleaned, and prepared for analysis. Descriptive analysis was used to measure the response’s mode, median, and mean and effects noted. The relationship between purchase decision-making behaviors was examined using multiple linear regression analysis. The data gathered was analyzed using Microsoft Excel and SPSS, and findings were presented in tables and charts. The research used the regression model below

Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + β₄X₄ + µ

Y = Consumer buyer behavior

X₁ = Brand awareness

X₂ = Brand association

X₃ = Emotional influence

X₄ = Reasoned action

µ = Error

3.6 Measurement Development

The questionnaire design consisted of close-ended questions requiring the participants to choose from a limited number of predetermined replies founded on the research responses analyzed and critically assessed for their relevance to the secondary source and focus groups’ results. The sampling was stratified, and the samples were divided into various subsets as per their age.

The criteria set for this test are as follows

Number of groups	3
Participants per group	8-10
Selection procedure	Pre Screening test, selection via email
Length of time	1-1.5 hours
Recording	Observation notes and voice recording
Location	University of Westminster meeting room
Sex	Male and female
Usage	Participants must be on at least 1 social media platform
Attitudes and interests	Participants should be interested in shopping luxury brands

 

The participants were chosen through an experienced moderator’s judgment that created a comfortable environment for the respondents. The participants were divided into the groups below

Lifestyle groups	Age group	Definition
Students	18-25 years	More influenced with e-marketing
Professionals	26-40 years	may/may not be affected by e-marketing
Professionals upper	41-60 years	Minimal influenced with e-marketing

 

The projective techniques used were

Projective technique	Brief description
Association technique	The participants were asked about the first thing they feel about purchasing luxury brands and their awareness of new products.
Completion technique	Individuals were asked several preliminary questions to answer.
Expressive technique	The participants were shown specific adverts produced by luxury brands on social media and were asked their opinion.

 

 

 

 

 

 

 

 

 

 

4. ANALYSIS OF DATA

4.0 Introduction

This section of the research displays the findings from the analysis. The study used SPSS and Microsoft Excel in the analysis. This section contains inferential, descriptive, and demographic information. The results presented using figures and tables. 

4.0.1 Response rate

The investigator disseminated 250 questionnaires through a structured online survey, specifically google forms. From the 250 disseminated questionnaires, 186 were completed and submitted back. This figure represented a 74.4 % response rate, which should always be greater than 50% to have a good sample representation of the population.

4.0.2 Reliability Test

  The researcher did a reliability test to find out the reliability of the research materials. The researcher used SPSS to calculate Cronbach’s alpha as a measure of reliability. A universal recognized regulation is that an alpha of 0.6 – 0.7 shows a satisfactory level of reliability, and 0.8 or higher shows an outstanding level. However, values greater than 0.95 are not good because they designate redundancy (Hulin, Netemeyer, and Cudeck, 2001). Table 4.1 shows the outcomes. 

Table 4.1: Reliability Test
Cronbach’s Alpha	Cronbach’s Alpha Based on Standardized Items	N of Items
.676	.676	5

 

The study displayed a Cronbach alpha of 0.676, meaning the research instrument were adequate for the study. This finding is per Hulin, Netemeyer, and Cudeck’s (2001) notion that an alpha of 0.6 – 0.7 is a satisfactory reliability level.

4.1 Descriptive Analysis

This analysis is significant in examining important information concerning the survey method. Table 4.2 below shows the descriptive data

Table 4.2: Descriptive Statistics
	N	Mean	Std. Deviation
CONSUMER PURCHASE BEHAVIOR	186	1.99	.694
BRAND AWARENESS	186	1.96	.693
BRAND ASSOCIATION	186	2.09	.644
EMOTIONAL INFLUENCE	186	2.02	.678
REASONED ACTION	186	2.02	.735
Valid N (listwise)	186

 

4.1.1 Consumer Purchase Behavior

Table 4.3 below displays the frequency of the consumer purchase behavior

Table 4.3: Frequency of Consumer Purchase Behavior
		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	NO	45	24.2	24.2	24.2
	YES	97	52.2	52.2	76.3
	BOTH	44	23.7	23.7	100.0
	Total	186	100.0	100.0

 

From the table, we can observe that 52.2% of respondents who took part in the survey bought their luxury products through the internet. 24.2% of the respondents did not buy luxury products from the internet. 23.7% used both the internet and the physical shop.

4.1.2 Brand Awareness

The researcher investigated brand awareness and how it influenced consumer purchase behavior. A frequency table showed the percentage of the consumers who considered brand awareness when buying luxury products, as shown in table 4.4. Table 4.5 displays the crosstabs between consumer purchase behavior and brand awareness.

Table 4.4: Frequency of Brand Awareness
		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	NO	48	25.8	25.8	25.8
	YES	97	52.2	52.2	78.0
	SOMETIMES	41	22.0	22.0	100.0
	Total	186	100.0	100.0

 

From the frequency table, we can observe that 52.2% of respondents acknowledged that they considered brand awareness when purchasing a luxury product. 25.8% stated that brand awareness did not influence their decision to purchase luxury products. 22.0% stated that sometimes they considered brand awareness but not always.  

 

Table 4.5: Brand Awareness Cross Tabulation

		BRAND AWARENESS			Total
		NO	YES	SOMETIMES
CONSUMER PURCHASE BEHAVIOR	NO	19	23	3	45
	YES	23	56	18	97
	BOTH	6	18	20	44
Total		48	97	41	186

 

From the crosstab, we can observe that 57.73% of the respondents who bought luxury products online resulted from brand awareness influence, whereas brand awareness did not influence 23.71% of respondents who shopped online. Brand awareness influenced 51.11% of respondents who physically purchased luxury products, but the same did not apply to the 42.22% of the respondents who did not shop online. 

4.1.3 Brand Association

Table 4.6 displays the frequency of brand association and table 4.7 displays the crosstab between brand association and consumer purchase behavior.

 

Table 4.6: Frequency of Brand Association
		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	NO	31	16.7	16.7	16.7
	YES	108	58.1	58.1	74.7
	SOMETIMES	47	25.3	25.3	100.0
	Total	186	100.0	100.0

 

58.1% acknowledged that they considered brand association before purchasing a luxury product, whereas 16.7% said they do not consider brand association in purchasing luxury products. 25.3% said they sometimes consider brand awareness when making a purchase

Table 4.7: Brand Association Cross tabulation
		BRAND ASSOCIATION			Total
		NO	YES	SOMETIMES
CONSUMER PURCHASE BEHAVIOR	NO	12	27	6	45
	YES	19	58	20	97
	BOTH	0	23	21	44
Total		31	108	47	186

 

From the crosstab above, we can see that 59.79% of participants who shopped online considered brand association when making a purchase, whereas 19.59% who shopped online did not consider brand association in making a purchasing decision. 60% of participants who did not shop online considered brand association in making a purchasing decision. 26.67% of participants who did not shop online did not consider brand association in making a purchasing decision.

4.1.4 Emotional Influence

The analysis of emotional influence produced the following frequencies on table 4.8 and crosstab in table 4.9

Table 4.8: Frequency of Emotional Influence
		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	NO	41	22.0	22.0	22.0
	YES	101	54.3	54.3	76.3
	SOMETIMES	44	23.7	23.7	100.0
	Total	186	100.0	100.0

 

From the frequency table above, 54.3% of participants said emotions influenced their purchase decision-making process. 22.0% of the respondents said emotions did not influence their decision-making in purchasing luxury products, while 23.7% said that at times emotions influenced their decision-making process. 

Table 4.9: Emotional Influence Cross Tabulation

		EMOTIONAL INFLUENCE			Total
		NO	YES	SOMETIMES
CONSUMER PURCHASE BEHAVIOR	NO	15	25	5	45
	YES	24	50	23	97
	BOTH	2	26	16	44
Total		41	101	44	186

 

51.55% of the participants who purchased online said emotions influenced their decision-making process, whereas 24.74% who shopped online said that emotions did not influence their decision. 55.56% who did not shop online said that emotions influenced their decision, and the proportion of participants who said that emotions did not influence their decision and did not shop online was 33.33%.

 

4.1.5 Reasoned Action

The frequencies and crosstabs for reasoned action are as below.

From the table below, we observe that 46.2% of the participants said they considered reasoning when making a purchase decision. 25.8% said that they did not use reasoning to make a purchase decision, and 28% said they used it at times.

Table 4.10: Frequency of Reasoned Action
		Frequency	Percent	Valid Percent	Cumulative Percent
Valid	NO	48	25.8	25.8	25.8
	YES	86	46.2	46.2	72.0
	SOMETIMES	52	28.0	28.0	100.0
	Total	186	100.0	100.0

 

 

Table 4.11: Reasoned Action Cross Tabulation

		REASONED ACTION			Total
		NO	YES	SOMETIMES
CONSUMER PURCHASE BEHAVIOR	NO	17	22	6	45
	YES	25	45	27	97
	BOTH	6	19	19	44
Total		48	86	52	186

 

46.39% of consumers who shopped online said they used reasoning when making a purchase decision, whereas 25.77% who shopped online did not use reason to purchase decisions. 48.89% of the respondents who did not shop online were influenced by reasoning, while 37.78% who did not shop online said that reasoned action did not influence their decision-making process.

4.2 Regression Analysis

The following are the results from the correlation analysis, regression coefficients, and ANOVA.

4.2.1 Correlation Analysis

Correlation analysis was run to examine the relationships between the predictor variables and the dependent variable. Table 4.12 displays the results from the correlation analysis.

 

Table 4.12: Correlation Analysis

	CONSUMER PURCHASE BEHAVIOR	BRAND AWARENESS	BRAND ASSOCIATION	EMOTIONAL INFLUENCE	REASONED ACTION
CONSUMER PURCHASE BEHAVIOR	1
BRAND AWARENESS	0.502	1
BRAND ASSOCIATION	0.501	0.456	1
EMOTIONAL INFLUENCE	0.480	0.517	0.413	1
REASONED ACTION	0.453	0.500	0.508	0.499	1

 

Table 4.12 shows that the relationship between brand awareness and consumer purchase behavior is positive r = 0.502. The relationship between brand association and consumer purchase behavior is positive r = 0.501. Emotional influence has a significant positive relationship with consumer purchase behavior with r = 0.480. There is a positive and significant relationship between consumer purchase behavior and reasoned research with r = 0.453. The result shows that brand awareness had a strong positive relationship with consumer purchase behavior followed by brand association, emotional influence, and reasoned action.

4.2.2 ANOVA

The findings from the Analysis of Variance are shown in table 4.13 below

Table 4.13: ANOVA
	df	SS	MS	F	Significance F
Regression	4	24.143	6.036	29.896	0.0000
Residual	180	36.341	0.202
Total	184	60.484

 

From the table above, we observe that the p-value = 0.000, which is less than 0.05. This value indicates that the overall regression model was significant in the study and at least one variable of the for significantly influenced consumer purchasing behavior.

4.2.3 Regression Coefficients

The regression coefficients show how each predictor affects the response variable. Table 4.14 displays the results of the regression coefficients.                

Table 4.14: Regression Coefficients

	Coefficients	Standard Error	t Stat	P-value
Intercept	0.344	0.155	2.217	0.0279
BRAND AWARENESS	0.243	0.074	3.297	0.0012
BRAND ASSOCIATION	0.245	0.075	3.283	0.0012
EMOTIONAL INFLUENCE	0.208	0.073	2.849	0.0049
REASONED ACTION	0.120	0.072	1.673	0.0962

 

From the coefficients above, the linear model equation is:

Y = 0.344 + 0.243X₁ + 0.245X₂ + 0.208X₃ + 0.120X₃

Where: Y = Consumer purchase behavior

              X₁ = Brand Awareness

              X₂ = Brand Association

              X₃ = Emotional Influence

              X₄ = Reasoned Action

The analysis results show that when all variables are constant, then consumer purchase behavior will be at 0.344. If a unit increases brand awareness, the consumer purchase behavior will be at 0.243. If a unit increases brand association, the consumer purchase behavior will be at 0.245. If a unit increases emotional influence, the consumer purchase behavior will be at 0.208, and if a unit increases reasoned action, then the consumer purchase behavior will be at 0.120. These facts show that there will be a positive increment in the response variable for a positive increase in each predictor variable.

5. CONCLUSION AND RECOMMENDATION

5.1 Discussion

The modern advertising industry requires marketers to identify the best and significant ways to relate to customers (Coulter, 1998; Mai and Schoeller, 2009). The marketers need to capitalize on promoting efficiency with its preferred communication conveyance technique. Marketing efficiency influences the brand’s two significant intentions, which are positive consumer attitudes concerning the advertisement, the brand, and an increase of product purchase. Past studies emphasize that the mode of communicating a message is strongly related to its advertisement effects (Van den Putte, 2009). This paper focused on how online marketing influence consumers’ purchase decision-making process of luxury products. The individual behavior traits that the study focused on were brand awareness, brand association, emotional influence, and reasoned action. The study developed three research objectives to aid in studying this claim, to identify the attributes of the consumers’ willingness to purchase online, to explore customer attitude towards luxury brands and exploring viewpoints towards online marketing luxury brands, and to determine the factors stimulating the online marketing purchase decision focusing on individuals shopping online. The researcher used both qualitative analysis and quantitative analysis to determine the objectives. 

The investigator used qualitative analysis to determine the first objective of the research. The questionnaire asked the participants why they opted to purchase products online over the brick and mortar shops. Several participants agreed that the online platform was convenient for them since they could shop from anywhere they were and did not have to travel or visit a physical shop. They also said that the delivery option buys the online shops, where purchased products reach the client on a place they specify. The clients’ delivery system was highly considered because the luxury products are always expensive, and the client will not be liable for any damage during the delivery process. The means of payment using credit cards are secure and avoids the risk of defrauding. The online platform had a long list of catalogs from which the consumers could choose from making it easy for them to identify various products they need. From the respondents’ replies, the study concluded three significant factors that influence consumers’ willingness to purchase online. The factors were security, ease of purchase, convenience, and safe delivery of products. These replies helped to decide on the first objective of the study.

The investigator used both qualitative and quantitative analysis to determine the second objective. From the sample, 52.2% of the respondents preferred shopping for luxury products online, and 24.2% did not shop online. 23.7% said they sometimes used both the online platforms and the physical shops to purchase luxury products. These statistics show that over half of the respondents had a positive attitude about shopping online and opted for the brick and mortar stores method. The most luxury products that the customers purchased online included apparel, footwear, and personal accessories. The respondents agreed that online platforms to market the products were innovative, appealing, and effective in reaching the target consumers. The respondents’ also said using social media such as Instagram, Facebook, and Twitter was very effective since it reached the consumer in their social elements. These platforms are the most used platforms by the millennials’ and exploiting them will ensure proper effective penetration of brands in the market. The study identified and concluded that the consumer attitudes towards online purchasing was positive and encouraged by the participants. The study also concluded that the use of social platforms for marketing was sufficient and accepted by the consumers. These facts helped the researcher to determine the second research objective.

The researcher used quantitative analysis to determine the third objective, which involved regression analysis, frequency tables, and cross-tabulations. The object is to determine the factors stimulating the online marketing purchase decision focusing on individuals shopping online. The study identified four significant factors: brand awareness, brand association, emotional influence, and reasoned action.

5.1.1 Effects of Brand Awareness

From the entire sample collected, 52.2% of the participants agreed that brand awareness influenced their decision to purchase luxury products. This proportion was more than half of the sample. Whereas 25.8% acknowledged that brand awareness did not influence them when they were purchasing products online. 22% of the respondents agreed that there were occasions when brand awareness influenced their decisions, and at times, they did not consider brand awareness, especially when buying products from impulse. The participants said they considered brand awareness when considering a new product or when a new product entered the market; they would first want to know more about it before purchasing it. They also said that to know more about a product, they used YouTube and Instagram.

From the sample that shopped online, 57.73% of the participants said that brand awareness influenced their purchasing products’ decision-making. Brand awareness had a positive correlation with consumer purchase behavior with r = 0.502. The relationship between brand awareness and consumer purchase behavior was significant at p-value = 0.0012, which was less than 0.005. From these findings, the study concludes that brand awareness influences the consumer decision-making process of luxury products, and the more a consumer is aware of a brand, the higher their chances of purchasing the brand. Companies should increase their brand awareness crusade to infiltrate the market better and get access to various consumers.

5.1.2 Effects of Brand Association

The frequency analysis displayed that 58.1% of the participants considered brand association when purchasing luxury products. 16.7% did not consider brand association when making purchases, whereas 25.3% acknowledged that they sometimes considered brand association when making purchases. Most of the respondents agreed that they mostly considered brands associated with their favorite celebrities and personalities. This behavior usually influenced those shopping for sports products; they hugely considered the individual teams they supported and the players they loved. The respondents hugely considered the luxury product associated with the top celebrities and personalities then.

59.79% who shopped online from the frequency analysis said that brand association influenced their purchase decision-making process. This figure represents more than half of the samples in the study. The brand association had a positive relationship with consumer purchase behavior with r = 0.501. The relationship between brand association and consumer purchase behavior was significant with a p-value = 0.0012, less than 0.05. From these findings, the study concludes that brand association has a significant positive effect on consumer purchase behavior. A positive increase in the brand association will increase consumer purchase behavior positively. The companies should involve top celebrities and famous personalities to relate with their products to increase sales and access to more consumers.

5.1.3 Effects of Emotional Influence

From the frequency analysis, 54.3% of participants agreed that emotions influenced their purchase decision of luxury products. The proportion of participants who acknowledged that emotions did not influence their decision-making process was 22%. 23.7% of the participants agreed that sometimes emotions affected their purchase decision but not always. The respondents said that emotions could affect them mostly when purchasing personal accessory products. The respondents said that certain advertisements triggered their emotions. The companies used advertisements such as using favorite pets, models, and funny moments. Emotion influence depended mostly on how the companies delivered their messages across to the consumers, and the advertisements that were dry and did not have any emotional attachment did not influence the clients.

The findings show that 51.55% of the participants’ who shopped online emotions influenced their decision-making process of purchasing luxury products, and 55.5% who did not shop online said that emotions influenced their decisions when considering a purchase. The emotional influence had a positive correlation with consumer purchase decisions with r = 0.48. The relationship between emotional influence and consumer purchase behavior was significant with a p-value = 0.0049, less than 0.05. From these findings, the research concludes that emotions influenced consumer purchase behavior. The study also determines that the trigger to consumer emotions is how the marketers put their message across to the platforms. The relevant companies should invest in advertisements’ that are funny, emotional, and intriguing to the consumers.

5.1.4 Effects of Reasoned Action

The frequency analysis displayed that 46.2% of the participants considered reasoned action theory when making a purchase decision. 28% said that reasoned action theory sometimes influenced their decision-making process, whereas 25.8% said that reasoned action did not influence their behavior. From the figures, the proportion who considered reasoned action was less than half the total sample. These figures could indicate that not so many individuals considered reasoned action when making a purchasing decision. Reasoned action theory is when a consumer buys a luxury product considering how society will view how it looks on them. Acceptance of the society and the individual on the impression the product will have on a consumer drives the theory. Not so many individuals consider how society will perceive them when they use a particular luxury product from the findings.

From the cross-tabulation (table 4.11), 46.39% of respondents who shopped online used reasoning when making a purchase decision. 48.89% who did not shop online applied reasoned action when making a purchasing decision. Reasoned action had a positive relationship with consumer purchase behavior with r = 0.453. The relationship between consumer purchase behavior and reasoned action was not statistically significant with a p-value = 0.0962, which is greater than 0.05. These findings show that reasoned action did not significantly influence consumer purchase behavior. Not so many consumers consider reasoned action when making a purchasing decision. Therefore, marketers should not focus much on reasoned action in their advertisements since it will not influence the purchase behavior. 

5.1.5 Effects of Online Marketing

 Experts considered retailing fashion online improbable to flourish at the beginning of the e-market since individuals want to feel and try on apparel and the collective knowledge related to clothes buying for females (Rowley, 2009). Nonetheless, the capacity for clothes and shoes sold online has increased progressively, and online profits for fashion merchandises have been rising between twenty-five to thirty percent yearly since 2000 (IMRG, 2006). The analysis on the influence of online marketing was through looking at several peer-reviewed articles from google scholar. Various articles supported the influence online marketing has on the purchase of luxury products.

The study conducted by Godey et al. (2016) concluded that social media marketing influences brand awareness among its consumers. It also shows that online marketing is an all-inclusive perception that combines customization, entertainment, word of mouth, interaction, and trendiness to influence a brand further. Social media moves the power to online brand images from dealers to consumers’ content and connections online (Tsai and Men, 2013).

Recent studies have shown that customers’ decision-making methods of United States college students online indicated that online buyers were brand cognizant, self-indulgent shoppers, a brand dedicated, impetuous, fashion sentient value-conscious (Cowart and Goldsmith, 2007). There is proof that brand awareness and familiarity could sway commitment with the online platform and awareness with brands accessible online, combined with preceding involvement of purchasing online predisposed discernments of the danger connected with buying online and purposes to buy online. Many authors have submitted that the ideologies of branding have transformed marginally because of the online platforms. Internet marking requires constructing on and assimilating with branding via other platforms (Rubenstein, 2002).

The growth of business promotion innovations fluctuates from print and billboard advertisements to more internet marketing platforms and the strategy. The objective audience details itself with the extraordinary upsurge of internet marketing, internet purchasing, and retailing online businesses’ internet plan. Modern companies focus on developing websites for promoting their merchandise other than displaying commercials on television, newspapers, publications, and billboards. Online marketing is the prospect of advertising; it is fast, cheap, and give timely and dependable information (Lodhi and Shoaib, 2017). 

5.3 Conclusion

From the findings presented through the various analysis in the study, the research can conclude some factors. The study met all its three research objectives. The study also concludes that three of the four behavior influencing elements were significant and positive in explaining the consumer purchase decision-making process. The three elements are brand awareness, brand association, and emotional influence. The theory of reasoned action positively correlates with consumer purchase behavior but was not statistically significant in explaining consumer purchase behavior.

Online marketing is an emerging force in the retail industry threatening to run out the brick and mortar stores. This study shows that many people are opting to purchase their luxury products online because of the security, convenience, safe deliveries, and ease of purchasing. Social media is more advantageous as an online marketing tool since it gives the companies a platform to interact directly with their consumers and get relevant feedback. Through social media, consumers can create their content around the brand through discussions with other users. Studies have shown that millennials would believe information from the internet compared to advertisements that companies sponsor in televisions, magazines, and billboards. The most used social media platforms are Instagram, Twitter, and Facebook.

Companies should develop websites that are easy to go through and offer a big catalog that clients can choose from. The websites should be fun and engaging to trigger client emotions as they go through the site. Companies should emphasize brand awareness as it had the highest correlation with consumer purchase behavior followed by brand association, emotional influence, and finally reasoned action. They should also find ways and measures to stop the sale of counterfeit products by fraudsters who develop fake websites to swindle unknowing customers. The best platforms that companies can utilize are Facebook ads, Instagram, and YouTube.

More education is required for the consumers to teach them the safe ways to transact online without giving out their personal information that hackers can exploit. Consumers should also be aware of social media’s safe use not to harm other people and company brands.

5.3 Value of Research and Marketing Implications

This study’s findings give significant support to provide additional authentication into the vague literature assumptions. There are several studies about the influences of purchase making-decision individually; however, few studies have studied all the combined behaviors simultaneously. The marketing companies should know the precise effect of each factor in comparison with each other and the purchase behavior to control the highest amount of effectiveness. The results from this study give useful perceptions in the matter.

Program makers would profit from this research by knowing the worth of applying policies that target improving and streamlining the retail sector. They would also profit from the information on the alterations and underlying forces convenient for the retail industry comprising the consumer response. This study can give marketers a foundation in planning suitable strategies and guidelines that would warrant the operational enactment of appropriate by-laws. Academics and investigators would profit from the information on the influence of online marketing on consumer buying behavior. Luxury product marketers would understand how online marketing affects consumer purchase behavior and which specific elements they need to focus on to build their brand and increase sales.

From the participants’ replies from the questionnaire, there were specific issues that the relevant companies should address. These issues included receiving a different product from the one they ordered, the respondents opted for the option of payment on delivery to confirm the product before payment, and some platforms offered transactions without fees on the credit cards, and some did not. There were many counterfeit products in the market, mostly the brands associated with top celebrities and personalities. The respondents raised the patent issues so that the relevant companies could look into them and resolve them to better their brands and products.  

5.4 Limitations and Future Research

The study had various limitations in its execution, one being that it faced a limited number of participants. Considering the age group chosen by the researcher, it was not easy to get people who are forty years and above to conduct focus groups. The study further used a survey technique where it recruited respondents through the online platform of google forms. Young customers who understood the internet represent this sampling technique, and this age group was majorly eighteen to thirty-five years old.

The research is limited to a university setting and on individuals who had social media accounts. This limitation led to few samples used in the research. Future research should expand the study’s scope to include a larger sample and possibly a more representative result that is applicable on a large scale. Since the study depended on consumer purchases, people may not have been honest with their opinions because not all could afford luxury brand shopping. This business could have a negative impact on the results.

From this research, future investigators can further examine the impact of reasoned action theory on consumer purchase behavior. It is why consumers no longer consider it as a behavior and why they do not care what society perceives of them when they use certain luxury products. Researchers can further examine what emotions influence customer purchase behavior, such as fear, humor, happiness, or sadness. A researcher can design a study to examine the individual emotional factors that influence they have on the consumer and from them, which is more significant and has a strong correlation with consumer purchase behavior.

The study suggests for further research other post advertising variables for marketing efficiency like sales and orders from online platforms. This data can help investigate if there is a real buying behavior prompted via brand awareness, brand association, emotional influence, and reasoned action. Investigators can further examine marketing effectiveness with the help of longitudinal procedures to identify if these behaviors’ influence is only short term or there can be significant alterations over time.