1.1Background to the Study
The growth of the Internet as a marketing tool has progressed daily since its inception. Over the last decade, organizations in all sectors of the economy rushed to join the online business community and adopted the Internet in their daily business activities (Barnes & Hinton, 2007). In the media context, many companies have aggressively adopted the Internet as another marketing tool (Ulhas, 2006; Wei, Heif, Thomas, Combrink & Hubet, 2001). The media sector has not been left behind in adopting e-commerce, as it is evident from numerous media properties that have established their presence on the Internet. However, it is not yet clear whether the spread and utilization of Internet marketing has improved the profitability of the South African media properties. Thus, the real benefits of this tool are of major concern to both managers and researchers in the media sector.
It is widely recognized that Information and Communication Technologies (ICTs) such as the Internet are rapidly expanding and have affected the way business is performed and the way organizations compete (Grandson & Pearson, 2004; Barnes & Hinton, 2007). It is known that the Tourism industry makes use of a diverse range of information (Ulhas, 2007) and is a main user of these technologies. Such technologies have affected the way tourism organizations conduct their business and, in particular, the way organizations market their tourism products.
Electronic marketing is a new concept used by modern businesses. The firms are increasingly using this newborn medium to market their product and services and sharing new products ideas and information. Firms and businesses are adopting information technology and internet to market their products and adoption has gained the attention of researchers, practitioners and policy makers (Gohary, 2012).Businesses are using internet and electronic media as support to their marketing efforts and as a result e-marketing is growing at very rapid pace. In other way we can say that IT revolution has changed the way of doing businesses altogether. Different authors have defined e-marketing differently. Smith & Chaffey (2005) defined it as “Achieving marketing objectives trough applying digital technologies”
While Strauss and Frost (2001) defined it as “The use of electronic data and applications for planning and executing the conception, distribution and pricing of ideas, goods and services to create exchanges that satisfy individual and organizational goals.” While reviewing related literature many researchers seem to confuse the term e-marketing with e-commerce, e-business and internet marketing. All the terms are used interchangeably, describing almost the same concept. While e-marketing is a term which is broader in scope. All above mentioned concepts come under the umbrella of e-marketing and it also includes mobile marketing, intranet and extranet etc. (Dehkordi, 2012).
As we enter into 21St century, we can see that way of doing businesses has been changed completely and internet is responsible for such change (Ainin and Ismawati, 2003).It has provided numerous opportunities to both individuals and companies, like now consumers can purchase from a wide variety of goods and services and they can compare the prices offered by different suppliers for same product or service. So, now consumers can choose and buy more easily and readily. On the other hand, firms are having opportunity to expand their current markets and enter into new ones, introduce new product & services and compete even in global environments. Success stories of those companies who have gained a big market share through internet presence emphasized over the fact that companies should have online presence. We cannot ignore success story of Amazon.com. The company gained a lion’s share of market through internet presence (Ya-Ping, 2012).Nowadays, internet and other related computer devices like smart phones, mobile phones and emails are in the reach of most of the people and even people log on to social networking sites on daily basis (Raad, 2010). The phenomenon has unfolded an important fact that Internet presence is essential for firm’s progress and even for its survival (Ya-Ping, 2012).Against traditional marketing channels, e-marketing gives economy of businesses resources. All firms cannot spend on their marketing efforts & advertisements in same way. Mostly firms which are smaller in size have budget limitations specified for marketing, moreover they are also facing human resource and time constrains. So e-marketing is dramatically cheaper as compared to radio marketing (Makesh, 2013).
Information technology has affected almost every sphere of man’s life. Internet provided the companies and individuals with useful means that help in decision making process. Now through internet consumers can get information regarding desired product from different vendors. Similarly, companies can get information regarding consumer’s purchase patterns and habits that ultimately help them to form their marketing strategies (Lin and Hong, 2008).
If we talk about consumer’s behaviors on internet, it has been observed that the most preferred activities on internet are to purchase some goods or services and gather information ( Joon moon, 2004) and look for services like investing, online banking and e-payment ( Lain ; Lin, 2007).The modern businesses are increasingly applying technology in its marketing activities. It is essential to understand that to what extent e-marketing is moderating the effect of market orientation on marketing competencies which ultimately correlated with firm’s performance (Raoofi, 2012).
As e-marketing has become an important part of marketing planning, so topic has gained special attention among researchers. Present study focuses on e-marketing and its importance as a promotional tool and its impact on consumer perceptions. In e-marketing four dimensions have been taken which are email marketing, web marketing, mobile marketing and internet marketing. New trends of doing business online to attract customers to surf online to evaluate the services or products of an organization has lead organizations to use online marketing tools to deliver their messages to customers. The trend to market products online with a blend of online and off line strategies has produced success to companies that are using online marketing strategies to execute their business in virtual business environment that has no boundaries. However, the concept of internet marketing merely does not full of advantages but some negatives appear alongside the advantages of internet marketing. A careful debate on the topic of internet marketing indicates as defined by Burrett (2008, p. 44) that virtual marketing is a strategic process that enable organizations to “carefully targeting users and getting them to interact with you while they are engaged with the most personal, intimate medium ever invented.” Internet has given more power to control and decide on the basis of information available online (Belch and Belch, 2009).
1.2Statement of the Problem
In recent years, e-marketing has emerged as a new philosophy and businesses are increasingly using internet and other such channels to support their marketing efforts. Most of the people can easily access internet and with the introduction of 3G services on mobile devices, internet is in access of every person who is using a mobile phone. While it is apparent that Internet development and its application in tourism have attracted the attention of many researchers in both developed and developing nations, the relationship between e-commerce application such as internet applications and business performance has not yet been established. Researchers have not yet reached a general conclusion on the impact of Internet applications on business performance. Previous researchers present contradictory findings as some found a positive relationship between the two concepts (Sunny et al., 2004; Ulhas, 2007; Salwani et al., 2009) and some found no relationship at all (Kivijarvi & Saarinen 1995; Powell and Dent-Micallef, 1997; Lo and Darma, 2000; Singh & Harmony, 2003; Ozituran & Roney, 2003; Shin, 2006). This implies that the impact of e-marketing on business performance is still debatable. Hence this study will examine the impact of e-marketing on internally generated revenue of some selected radio stations in Ibadan, Oyo State.
1.3Objectives of the Study
The broad objective of this study is to examine the impact of e-marketing on internally generated revenue of some selected radio stations in Ibadan with a perspective from Radio Nigeria, Oyo State. However, the specific objectives are to;
examine the extent to which organizational and environmental factors influence e-marketing usage and internally generated revenue of Radio Nigeria.
establish the relationship between e- marketing usage and business profitability through consideration of the effect of a moderating variable (such as internet marketing experience).
study the customer perceptions of e-marketing and online community of listeners of Radio Nigeria.
highlight how different medias of e-marketing like email marketing, mobile marketing, web marketing and internet marketing can support a Radio Nigeria marketing effort
proffer possible recommendations to the negative outcomes of dependent and independent variables.
The research questions for this study include;
To what is the extent do organizational and environmental factors influence e-marketing usage and internally generated revenue of Radio Nigeria?
Is there any significant relationship between e- marketing usage and internally generated revenue through consideration of the effect of a moderating variable (such as internet marketing experience
To what extent do different medias of e-marketing support a Radio Nigeria marketing effort?
The following hypothesis are formulated to be tested during the course of this study;
H01:Organizational and environmental factors does not have a significant influence on e-marketing usage and internally generated revenue of Radio Nigeria.
H02:There is no significant relationship between e- marketing usage and internally generated revenue through consideration of the effect of a moderating variable (such as internet marketing experience).
H03:Medias of e-marketing (i.e. email marketing, mobile marketing, web marketing and internet marketing) does not support a Radio Nigeria marketing effort
1.6Significance of the Study
Since the last decade, internet has captured special status in our lives. It has become an essential daily routine for most of the people and they cannot imagine life without internet. It has presented companies and marketers with opportunity to explore new ways of advertising their products or services to consumers. With the technology revolution and advent of internet, electronic marketing is considered an important marketing tool.
Companies cannot ignore e-marketing while designing its marketing plan as it’s a double-edged sword which can create or destroy opportunities. The study is being conducted for understanding the role of e-marketing as a promotional tool and its impact on consumer perception.
A thorough review of the literate concerned with internet marketing and its impact will reveal the relationship between different types of variables that include online marketing as independent variable while online communities emerge as dependent variables.
The literature will shed light on the need of empirical investigation to explore positive and negative impact of internet marketing on different online communities that involve women and children and children’s use of internet in isolation.
The findings of this investigation could serve to not only inform decisions on the benefits of Internet marketing, but also to furnish useful guides to the establishments in the media sector as well as firms of similar structure on how the Internet can best be deployed for improved business profitability.
1.7Scope of the Study
This study is limited to the impact of e-marketing on internally generated revenue of some selected radio stations in Ibadan. The media houses such as Radio Nigeria, Fresh FM, Splash FM, Beat FM, IBR FM, Petals FM and Jamz FM, are increasingly using this newborn medium to market their product and services and sharing new products ideas and information.
1.8Operational Definition of Terms
E-marketing: E-marketing is a process of planning and executing the conception, distribution,
promotion, and pricing of products and services in a computerized, networked environment, such as the Internet and the World Wide Web, to facilitate exchanges and satisfy customer demands. It has two distinct advantages over traditional marketing. E-marketing provides customers with more convenience and more competitive prices, and it enables businesses to reduce operational costs.
Internally Generated Revenue: Internally generated revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers. Revenue is also referred to as sales or turnover. Some companies receive revenue from interest, royalties, or other fees. Revenue may refer to business income in general, or it may refer to the amount, in a monetary unit, earned during a period of time.
Radio Stations: A radio station is a set of equipment necessary to carry on communication via radio waves. Generally, it is a receiver or transmitter, an antenna, and some smaller additional equipment necessary to operate them. Radio stations play a vital role in communication technology as they are heavily relied on to transfer data and information across the world.
This chapter provides an extensive review on the impact of e-marketing on internally generated revenue of some selected radio stations, theoretical review and empirical works of authors are also examined.
Makash (2013) proposed that any showcasing action in the web ought to consider electronic marketing. E-marketing essentially contributes in the economy of business assets as contrast with conventional advertising channels. Numerous SME’s can’t manage the cost of the huge promoting Budget (especially in retreat), human assets and their time assets are restricted as well. E-marketing is fundamentally less expensive. Faisal, (2009) distinguished that e marketing incorporates utilization of showcasing standards and procedures through electronic media and all the more particularly web.
Hatem (2011) highlighted, However Electronic Marketing (E-Marketing) is still a moderately new idea, especially for associations working in creating nations that have restricted assets, awful foundation, and solid rivalry and can’t bear to settle on indiscreet speculations or wrong choices. In this manner, there is a need to have a much clearer understanding of E-Marketing issues and additionally its chances for such associations; and how these advances can be utilized to complete the association promoting exercises and techniques in a more viable and effective route than dependence on customary showcasing practices. E-Marketing can be seen as logic and a current business practice included with promoting of merchandise, administrations, data and thoughts through the Internet and other electronic means. By assessing the applicable writing it is recognized that meanings of E-Marketing fluctuate as indicated by each scientist’s perspective, foundation and specialization.
Sally (2004) said that amid the most recent decade, numerous associations have added to some type of Internet vicinity. He consider electronic promoting, the most recent kind of advertising, utilizing the well-known structure of the seven Ps of showcasing – product, price, promotion, place (distribution), process, physical proof, and persons – trying to assess electronic promoting and its potential commitment to promoting by and large. He presumes that whilst not every advertiser grasps the utilization of the Internet, this “new child on the square” has turned into an acknowledged piece of showcasing action. He additionally infers that electronic promoting does not yet can possibly supplant conventional advertising endeavors. It ought to be seen as an important and corresponding apparatus, and supervisors ought to grasp new innovation with a specific end goal to make more prominent worth for clients.
Shu (2004) proposed that direct marketing is the utilization of the phone and no individual media to convey item and authoritative data to clients, who then can buy items by means of mail, phone, or the Internet. Interestingly, inventory showcasing is a sort of promoting in which an association gives a list from which clients make determinations and spot requests via mail or phone. Nonetheless, most inventories for retailing firms are introduced to clients in the arrangement of paper indexes without key division configuration and usage. In this respect, electronic list plan and advertising could be a system to incorporate the Internet and inventory promoting utilizing business division as a part of request to improve the viability of direct marketing and sale management in retail.
Electronic mail is an important medium for communication for marketers as it is low in cost and companies can contact their customers on regular basis. The cost factor is main reason for adoption of this media as marketing tool. Godin (1999) pointed out that e-mail has become an important activity among internet users. Due to effectiveness and efficiency of email, companies are now considering its potential as a marketing tool. As per Merisavo and Raulas (2004), emails can serve numerous marketing purposes like, to inform customers about a company’s products, to promote the products, to establish brands, to give information regarding the company websites, to alert the customers, and to update customers about the status of their orders. Through email marketing, purchase frequency of the customers may be increased and consumers may be compelled to respond and ultimately engaged in negotiation process with company. So it’s a best marketing tool that can be used by the firms to market their products (Raad and Yeassen, 2010). E-mail marketing is some kind of direct marketing through which service quality can be enhanced and customer awareness and attention can be increased (Dehkordi et al., 2012).Pepper and Rodger (2000) state that email marketing is such tool which is low in cost and high in response and this thing has made email marketing the most useful term of electronic marketing. Rettie (2002) conducted a study in UK and proved following hypothesis:-
To increase consumer response, subject of email is very important. More attractive subject means high response.
There is negative relation between length of email and customer response.
Emails having more images get more response.
Above are the success factors of email marketing proved by Rettie (2002). Any company having internet existence can take guidance from above results and make email marketing more effective. Emails are significant channel for marketing as it can assist companies in building and maintaining relations with their customers (Chaffey et al.,2003).Companies are widely and rapidly adopting emails as a promotional tool because it has low distribution cost and even small and medium sized firms can afford the cost (Moustakas et al., 2000).
E-marketing for its ability of being lower in cost and great accessibility, has become an important marketing tool while designing a company strategic marketing plan. It has given rise to customer bargaining power and intense competition for companies in global markets. No doubt internet and e-marketing has great potential for both consumers and marketers but consumers may vary in their level of adoption of e-marketing and internet (Ab Hamid, 2008). The main reason for this varying adoption level is consumer perception regarding e-marketing and related technologies. Information technology has provided the companies and consumers with useful information whenever they desire which help in decision making process. It’s essential to integrate overall e-marketing strategy with consumer perceive benefits, information on e-marketing, perceived convenience, security and privacy, perceived enjoyment and quality of web site (Raad et al., 2010). Kim et al., (2003) pointed out that in order to build consumer perception regarding a specific website; e-marketing can play a major role.
From consumer perception, internet related services have the ability to reduce cost, it present a choice of vendors, deliver products or services which are lower in prices and increase consumer convenience (Ab Hamid, 2008). Yang and Lester (2004) pointed out that frequent online shoppers keep positive feelings regarding e-marketing as compared to non-shoppers. Al Smadi (2000) examined possible factors that can influence attitude towards e-marketing. He found that in Jordan, consumers are having more knowledge and skills to use computers and internet so they have positive perception regarding e-marketing and company websites. It is imperative to understand consumer perception regarding e-marketing, as in online experience consumer perceptions are changing rapidly, so understanding it means marching towards online customer relationship management and generating profits for company. There are few studies focusing on consumer perception regarding e-marketing, so main purpose of this study is to investigate how e-marketing can effect consumer perception.
Internet has created new opportunities for marketers. Companies are developing sophisticated and modern e-marketing tools and this thing has made competition tougher than ever before (Ya-Ping, 2012). Companies are now exploring newer marketing channels which is a good strategic move. While marketing through internet, a special attention should be paid to product characteristics and way to promote a product. In recent decade, internet has made great progress and many companies are using internet for marketing their products as well as corporate activity (Kiang et al., 2000).In 1994, companies started using internet for commercial activities and supporting marketing efforts (Dehkordi et al., 2012).Most of the researchers argue in favor of e-marketing for its ability of being a cheaper media and capability of keeping customer data in digital form that facilitate the marketer in conducting market research (Fagerstorm and Ghinea, 2010). Internet marketing has made basic changes not only in businesses but also in individual behaviours. It provided the firms with information to understand the needs of customers and it has waived off the time and place limitations. It has also reduced the cost of product by omitting some unnecessary transaction and distribution cost (Sheth and Sharma, 2005).
The period from 1995 to 2000 is famous for the internet boom. This time span changed the way; businesses are doing transactions with their customers. As a result of the internet revolution many companies which fail to keep up with technological advances, terminated their operations and others strived for their existence by adopting internet and related technologies. As per Dehkordi et al., (2012), internet presents many advantages but above all it serves as a place for selling goods and services, these advantages can be divided in three categories:-
(1)It serves as a media for communication
(2)Transactions are easily routed through this channel
(3)It serves as a channel of distribution
In recent decade, internet marketing has made great progress and many companies are using internet to advertise their products and corporate activity (Kiang et al., 2000).
Since the last decade, mobile phones and its related devices like cellular phones and tablet computers have become an important part of our lives. For most of the people it’s difficult to imagine life without these devices (Kaplan, 2012). This rapid adoption of mobile phones pointed out the fact that people have accepted this technology and now it has become an important media for communication. As mobile phones allowed communication in entirely new form, so it has also effect on businesses. Businesses are using it as a tool for interaction between customers and advertisers. Now advertisers can easily and rapidly contact with consumers (Pavlou and Stewart, 2000).
Marketers are building relations with customers by readily providing them with required information. Mobile phones are compelling media for marketing as it has potential to communicate its message one-to-one, one-to-many and mass communication (Watson et al., 2013).The usage of mobile phones has increased dramatically and this phenomenon has captured the attention of researchers as it presents great opportunity to marketers that they can use mobile phones as an independent marketing channel (Bigne et al., 2005). Mobile marketing can be utilized to make customers aware regarding company goods, services and brands and build customer engagement and this can be achieved through text messages, advertising, delivering of mobile content, user generated content and mobile commerce (Watson et al., 2013).
Besides presenting opportunities, mobile marketing has some challenges for companies, as studies proved that consumers find mobile marketing irritating ( Makesh, 2007) and interference with their privacy ( Windham and Orton, 2002). So it has been agreed that there should be permission based marketing on mobiles (Stewart and Pavlou, 2002).Privacy issues are related to mobile marketing as mobiles are personal in nature (Brown, 2006).Consumers may be reluctant to share their personal data and information for sake of safety and this may rise to the issue of trust related mobile marketing. Moreover, there may be customers who are not comfortable with the products, services, ideas etc being promoted via mobile marketing (Varnali and Toker, 2010).
Besides having above issues, mobile phone devices have great potential for marketers as many people rely upon their mobiles for communication and entertainment purposes (Watson et al., 2013).It presents the organizations with greatest opportunity as marketers can reach their customers anytime and anywhere (Persaud and Azhar, 2012).
Internet marketing is all about developing a robust and attractive webpage which is scale in traffic because a firm planning to expand its business through online presence needs to pay special attention to deliver quality online experience. Dysfunctional and poorly designed websites are potential threats to company’s online existence as well as physical activities (Constantinides, 2004). There is growing consensus about commercial websites of companies. As Hwang et al., (2003), in his study visited websites of 160 companies and found that most of them were functional like traditional marketing techniques. While Singh and Dalal (1999) pointed out that ad on company homepages are just like other physical advertising messages on bill boards. Consumers incidentally come across pop-up or banner ads. Companies are required to design such websites that compel the consumers to access the site. Moreover it’s suggested that processing of sites may be centralized so that information on site may be considered and evaluated. It is helpful for both individuals and advertisers as websites process unlimited amount of information and consumers select only that information which is related to their concerns (Faber et al., 2004).
Banner ads are graphical image of rectangular shape which is displayed on HTML page at top, bottom or sides of web page. Now days, banner ads are largely used for advertisement on internet. Attractive and misleading messages are used in these ads which compel the consumers to click the ad (Faber et al., 2004). Base on the literature, banner ads have rarely positive effect. Like when users are looking for something important on internet these animated and colorful banners divert their attention and it is called banner blindness (Dehkordi et al., 2012).That’s why most of the researchers are questioning over the effectiveness of banner ads (Cross, 1999).
On the other hand some researchers highlight the positive effect of this format. Brigg and Hollis (1997) state that banner ads may function like bill board in traditional marketing, it can be used to increase the brand awareness and reinforce the brand message to existing users. He further proved in his experimental study that static banner ads may help to enhance brand awareness, brand strength and customer loyalty.
Some papers proved that animated banners have positive effect and some argue in favor of large banners as compared to small one. There are studies which suggest that fast moving banners have better click rate and for some, task base banners have better response rate (Rossiter and Bellman, 1999).
Pop-ups are another type of online ads which appear in separate window and over the top of the content which is being viewed by user. These are not closed until user actively blocks it (Faber et al., 2004).As compared to banner ads, pop-up ads capture more favorable consumer’s behavior towards ads and brand and result in high purchase intention (Cho et al., 2001). Again pop-up ads are considered irritating as they divers user attention from their activity. On the other hand, Manchanda et al., (2006) investigated that pop-up promotions have some qualities which are helpful to improve customer response on internet. Anna (2006) described that pop-ups can be both mobile and event driven. Pop-ups promotions are like guerilla marketing. Edward et al., (2002) found that consumers perceive pop-ups less irritating when they provide value to them. The best time to use pop-up ads when a new product is launched, so customer can get information about product through pop-up (Bargqvist and Leinoff, 2011).
The present study formulated the following conceptual model on the basis of hypotheses for better understanding of E-marketing and its dimension’s effects on consumer perception to make buying decision of specific products and services.
Fig. 2.1: Conceptual Framework
2.1.9Internal Generated Revenue
Internally generated revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers. Revenue is also referred to as sales or turnover. Some companies receive revenue from interest, royalties, or other fees. Revenue may refer to business income in general, or it may refer to the amount, in a monetary unit, earned during a period of time. Profits or net income generally imply total revenue minus total expenses in a given period. In accounting, in the balance statement it is a subsection of the Equity section and revenue increases equity, it is often referred to as the “top line” due to its position on the income statement at the very top. This is to be contrasted with the “bottom line” which denotes net income (gross revenues minus total expenses). (Bargqvist and Leinoff, 2011)
For non-profit organizations, annual revenue may be referred to as gross receipts. This revenue includes donations from individuals and corporations, support from government agencies, income from activities related to the organization’s mission, and income from fundraising activities, membership dues, and financial securities such as stocks, bonds or investment funds.In general usage, revenue is income received by an organization in the form of cash or cash equivalents. Sales revenue or revenues is income received from selling goods or services over a period of time. Tax revenue is income that a government receives from taxpayers.
In more formal usage, revenue is a calculation or estimation of periodic income based on a particular standard accounting practice or the rules established by a government or government agency. Two common accounting methods, cash basis accounting and accrual basis accounting, do not use the same process for measuring revenue. Corporations that offer shares for sale to the public are usually required by law to report revenue based on generally accepted accounting principles or International Financial Reporting Standards (Constantinides, 2004.
In a double-entry bookkeeping system, revenue accounts are general ledger accounts that are summarized periodically under the heading Revenue or Revenues on an income statement. Revenue account names describe the type of revenue, such as “Repair service revenue”, “Rent revenue earned” or “Sales
2.1.10Internet Marketing Usage and Internal Generated Revenue
It remains unilaterally that the overall objective of using Internet marketing is to maximize profit. Clayton & Crisiscuolo (2002:32) indicate that firms that use e-commerce are more likely to assess their innovations as having high positive impacts on firm performance than those who do not make use of e-commerce. However, as previously mentioned little research has been done at this stage on the extent to which Internet marketing influence business profitability in the South African media sector.
Table 2: Variables used in the study
Independent variable Measurements Sources
Property size Number of rooms Salwaniet al., (2009)
Managerial support Provide resources necessary for internet marketing, keep track with latest developments in internet features, emphasise in adapting to internet related market trends Chiochenet al., (2000), Wu et al., (2003)
Tech-competency Trained personnel, skilled personnel Salwaniet al. (2009)
Level of star grading Star grading is divided into two levels: lowly graded and highly graded Wei et al., (2003)
Perceived benefits Reduction in advertising cost, ability to increase sales volume, improvement in marketing communication, convenience and ability to reach global markets Chiochenet al., (2000),
Competition Responding to competitors action on internet marketing
Use of competitors’ information to maintain competitive advantage
Aware of competitors’ strength and weakness on internet marketing. Wu et al., (2003)
Del Aguila-Obra and
(2006), Zhu et al.,
Alliances Provide information on internet marketing Influence how business markets over internet Improve proficiency at obtaining information on how to market over the internet Elliott and Boshoff
Profitability Return on equity, Sales volume,
Profit margin, Operating cost Wu et al., (2003),
Internet marketing usage E-mail marketing, online branding web advertisement, use of newsletters use of search engines Nothnagel (2006)
Internet marketing experience Number of years using internet marketing Salwaniet al., (2009)
Source: Bargqvist and Leinoff, (2011)
The last aspect which was considered in this study was the effect of Internet marketing experience on the relationship between Internet marketing usage and business profitability. Previous experience with Internet marketing is a vital factor in the successful utilization of this technology, thus it is believed by Salwani et al., (2009:56), that experience in the use of e-commerce will have a strong contingent effect on the relationship between e-commerce usage and business financial performance. Khan & Motiwalla, (2002:34) conclude that experience in e-commerce is an important factor which determines usage and business financial performance. To establish whether Internet marketing experience can significantly moderate the relationship between Internet marketing usage and business profitability.
2.1.11Internet marketing its relationship with communities and its overall impact on users
The detailed study of literature concerning with internet marketing reveals strong relationship between online communities and an organization. Internet marketing strategies have strong influence and impact on online communities who can be divided into different groups such as men, women and children. Internet marketing, no doubt is a sheer source of connection between individuals and the organization providing consumers convenience of accessibility and ease to explore products using online forums. A rapid growth has been experienced in different types of online communities such as business-to-business (B-to-B), business-to-customer (B-to-C) and consumer to consumer (C-to-C) (Pitta and Fowler, 2005).
Internet being a useful and popular source of information provides opportunities to online communities to share their knowledge and access information on the product of their choice. Knowledge sharing influences marketers as well because of the availability of online information as it helps marketers to know customers’ choice and market trends (Wind, 1976).
The availability of internet at schools, homes and in offices has increased the ratio of its users. The internet usage by girls and boys is relatively equal at middle school level. However, the case with men and women usage varies because of the nature of users’ interests (Bessiere, et al. 2008). A detailed research conducted by Bessiere et al. (2008) highlights the impact of internet use by different communities as change in social behavior and depression. Results of this study highlights that entertainment and information are primary reasons behind internet use. However, 20% respondents of this research see internet a source to build new contacts based on mutual interests. This use of online forums helps to reduce users’ depression and change their overall behavior. A similar study carried by Rajani and Chandio (2004) shows differences & effects of information technology use on different types of online communities. It appears that internet has taken the place of other technologies as it is a faster medium of communication and source of accessing information.
Kraut et al. (1998) argues that various empirical studies conducted on the issues of effects of internet use indicate that most of the use of internet is associated with isolation as a user intends to establish new contacts using internet. However, internet does not isolate people from other community members but it leads people to form new contacts and friends who have online presence. Internet marketing has significantly positive effects on online users; providing online users ease of access of information, opportunities to compare the price of products and convenience of searching from home. The growth in internet marketing reveals that it is the result of users’ trust as they largely depend on internet marketing in present times. Internet has produced more freedom to explore different aspects of products and opportunities to compare and to contrast the attributes of a product. The concept of price is not similar to olden times as internet facilitates customers to check price of the product using online facility.
Internal Factor 1:Firm Size and Internet Marketing Usage
Firm size is one of the factors that can influence Internet marketing spending as well as the sales of a firm (Kan, 2005). Large firms are more likely to benefit from the use of ecommerce than smaller ones, in view of the fact that they have more resources than smaller ones (Salwaniet al., 2009). This can be clearly understood as firm size represents several important aspects of the organization, such as resource availability and prior technological experience (Zhu, Kraemer, Xu & Derick, 2004). Firm size, in the hotel sector, can be measured by a number of aspects such as the number of permanent employees, number of rooms and number of beds (McMaster, Kato & Kan, 2005; Ye, Rob & Gu, 2008). It can therefore be derived that size (as measured by the number of rooms) has a significant influence on Internet marketing usage of hotels and guesthouses.
Internal Factor 2:Level of Star Grading and Internet Marketing Usage
Property star rating is able to influence Internet marketing usage as well the revenue of a hotel (Ye et al., 2008). It is also indicated that hotel star rating has a significant effect on the use of the Internet (Wei et al., 2001). Wei et al., (2001) indicated that hotels can be regarded as lowly graded or highly graded. In this instance, one to two star hotels are regarded as lowly graded, and three to five star hotels are regarded as highly graded hotels.
Internal Factor 3:Top Management Support and Internet Marketing Usage
A number of studies indicate that top management support is the most critical factor in determining the successful use of e-commerce (Del Aguila-Obra, & Padilla-Melendez. 2006:13). Top management commitment is one of a small set of organizational factors which constantly re-appear as significantly related to the successful use of information technologies (Wu, Mahajan & Balasubramaniam, 2003).For the purpose of this investigation, managerial support refers to the manner in which top management places emphasis on the use of Internet marketing, how top management advises on the use of Internet marketing and how they are willing to provide the necessary resources. In general, if top managers are committed to the use of Internet marketing, it will allow other subordinates to follow suit.
Internal Factor 4:Technological Competence and Internet Marketing Usage
The term competence can be seen as the acquisition of knowledge, skills and abilities at a sufficient level of expertise, enabling properties to perform in an appropriate work setting (Cloete, Courtney & Dfintz, and 2002:8). On the other hand, many researchers view technological resources as an important factor for successful Internet adoption (Kuan & Chau, 2001; Del Aguila-Obra & Padilla-Melendez, 2006; Salwani et al., 2009), especially as a strong backing of e-commerce usage. In this investigation therefore, technological competence refers to the Information Technology (IT) personnel that enable the development and implementation of Internet marketing. If the IT personnel have sufficient training in the ways to use the Internet, then implementing Internet marketing could be successful. Realizing that previous authors support technological competence as an important factor affecting ecommerce usage.
Internal Factor 5:Perceived Benefits and Internet Marketing Usage
Del Aguila-Obra & Padilla-Melendez (2006:130) indicate that one of the factors that can affect the adoption and use of the Internet is the perceived benefits of using such technology. Cloete et al., (2002:8) also mention that adoption of e-commerce is largely based on perceived benefits. Perceived benefits can be direct, such as cost saving, an increase in sales volume and an increase in the number of new customers or indirect aspects such as convenience and the building of customer loyalty. In this investigation, the perceived benefits which were considered are: the ability of the Internet to reach global markets and increase in sales volume as well as the aspect of convenience.
External Factor 1:Existence of Alliances and Internet Marketing Usage
Business alliances can take on a number of forms and thus include personal contact networks, social networks, business networks and marketing networks (McGowan & Durkin, 2002:56). In this investigation, alliances refer to the extent to which media properties use business associates or contact networks as a mediating resource to plan and implement their Internet marketing strategies. Alliances play an important part in small and medium tourism businesses marketing, by reducing uncertainty and facilitating trust, thereby reducing the risk for the parties involved (Elliott & Boshoff, 2009:40).
External Factor 2:Environmental Competition and Internet Marketing Usage
Research literature supports that the decision to engage in a particular behavior, depends on what is happening in the environment at that particular moment (Salwani et al., 2009).
Competitive pressures and customer pressure make up external drivers that can influence the adoption of Internet marketing. In this investigation, environmental competition was assessed using three antecedents namely; discussion of competitors’ strength and weakness on Internet marketing, responding to competitors’ actions and lastly the value placed on tracking competitors’ activities.
Online marketing is also known as online advertising & internet advertising. Organizations contact customers to deliver promotional messages by using internet marketing. The use of various online forms such as advertising banners, pop-ups, online newspapers, magazines and social networks enable organizations to introduce their products to online users across the globe. Atkins (2003) believes that online surfers require more satisfaction before they decide to make purchase. It is because they have more opportunities to evaluate online business performance. The use of e-commerce technology tools enable organizations to satisfy their customers by knowing their liking and disliking and if they are convinced with online marketing initiatives? Many organizations as highlighted by Voight (2007) try to launch certain interactive platforms that can not only serve customers’ needs, introduce them with company initiatives but also facilitate customers to stay in contact with organization by communicating online. One of the primary aspects of using interactive online marketing techniques is to create loyalty among customers towards certain brands of the company and such interaction “can lead to new products and inspire new positioning and inform marketing programs (Voight, 2007, p. 15).” However, marketers can better exploit market opportunities by innovating online marketing initiatives and by making interactive social forums more feasible and reliable for customers to trust on company initiatives.
Impact on purchasing decisions
The impact of online marketing is two ways process that not only affects customers but customers’ response affects the organization as well. This process is known as pre-purchase and post-purchase response of customers. Riegner (2007) notes that the online marketing of products has received back strong impact in the form of customers’ response. There is good deal of change in social behavior because of internet marketing and because of the availability of social networks. Heinrichs et al. (2011) writes that internet marketing plays a role of communication platform between customers and business organization and effective online marketing changes customer behavior. According to Kempe, Kleinberg and Tardos (2003), the key role of internet marketing is to convey a meaningful message to customers that effectively attracts customers to buy company products.
2.1.15Online marketing and customer behavior change
Understanding consumer’s intentions and choice is vital to be successful in business filed. Customer behavior as defined by Solomon, et al. (2010, p.6) is “the study of processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires.” Market segmentation appears as one of the primary characteristics of customer behavior (Lantos, 2011), as this involves, age, gender and various community groups (Solomon, et al. 2010). The successful online marketing helps customers to decide and to change their behavior towards company products (Hawkins and Mothersbaugh, 2010). The decision process involves different critical steps as a consumer evaluates the information and advertising content if it convinces him/her. Kardes, Cronley and Cline (2011) highlight five preliminary steps that help a consumer to make purchasing decision.
(Kardes, Cronley and Cline, 2011)
2.1.16Types of online communities and online marketing strategy
The presence of online users on online forums indicate two types active communities namely communities of interest and communities of practice. Communities of interest include all online groups who have similar interests to each other and share common values. This type of communities share their knowledge, information and interests to other online participants. These interests also include political, specific cultural, religious or geographical interests. These communities keep their presence on social network forums, internet blogs and hence are a good target for business organizations to introduce them with products or business services. Communities of interest, by internet marketing view point are useful to get views on products, brands and to know the perception of potential future customers. The collected information using communities of interest forums supports strategic decisions of the organization and assists to improve online marketing strategies (Pitta and Fowler, 2005).
Online communities of practice work in groups; the community members share their ideas and take collective decision related to certain topic or issue. This approach of practice communities is different from communities of interest. Online blogs, social networks are popular place for communities of practice to exchange their ideas and information (Wenger, 1998).
Joy (2006) notes that organizations focus on three diverse aspects of marketing that include, visual, verbal and touch. However, visual aspect of online marketing is one of the dominant aspects as customers are attracted by video messages. Verbal marketing takes place in response to online queries or by engaging with customers using particular online forum. Radio and telephone calls are useful medium of verbal marketing. In contrast to visual and verbal marketing ‘touch and feel’ type of marketing is another aspect of traditional marketing that requires the physical presence of customers.
Communities of interest and communities of practice involve three types of groups that are men, women and children. According to Heermann (2010), organizations adopt different marketing initiatives for men and women as the gender difference plays significant role to alter disliking and liking of a product. “According to a study conducted at the University of Wisconsin, women notice and recall 70% more details in their environments than do men.” This shows as highlighted by Kraft and Weber (2012) that women are more brand conscious than men hence, online marketing initiatives adopted by organizations focus the gender differences as well.
The purchasing decision of men and women is different from each other due to gender differences. Kraft and Weber (2012) believes that men are short sighted and want immediate satisfaction while in comparison to this attitude women make purchasing decisions for long term benefits.
Due to any such reasons organizations should focus on inventing new tricks to get online customers’ attention. Cause marketing as noted by Shayon (2011), is an effective tool to merge into online marketing to attract female attention. Yoplait’s tops have been evaluated effective enough to relieve breast cancer and the sense of satisfaction increases brand loyalty among female buyers.
Moore (2008) believes that marketers need to change online marketing strategies according to changing social trends. Recent research supports this notion of change and further highlights that social changes affect the thinking and behavior of customers. This largely has altered traditional or typical family dynamics of purchasing. The concept of women attitude and behavior is no longer traditional but has changed a lot. Working women have increased in numbers and the concept of staying at home has declined at greater scale. Any certain marketing initiatives that focus house wives or mothers only will bring limited number of customers to the organization. According to Heermann (2012), a case study of McDonald’s suggests that the organization changed its online marketing strategy after facing sheer decline in its customers’ strength. The dominant factor was that they focused children only and ignored mothers. The new strategy “find the woman inside the mom” helped them to get their customers’ strength.
Children as large consumer community promises good revenue for business organizations and recent trends of using online social networks to communicate with friends appear to be a major element of change in social behaviours. Online marketers see social networks as opportunity to attract youth customers and market their products using banner add. Teenagers are greatly attracted to use Facebook, my space, twitter and the availability of internet on phones has made it convenient for teenagers to stay connected with friends at all times. Recent study indicates that race and class have no significant impact among children and they share their liking and disliking to other fellows equally and influence others opinion as well (Buckingham, 2008). Online fashion blogs, according to Stokberger-Sauer and Hoyer (2009) generate strong impact on teenage boys and girls. Marketing through online blogs appears as influential and trend setter that also helps to change purchasing decisions. Buckingham (2008) notes that marketing on cartoons or animated films’ websites bring countless number of youth customers for costume industry. Dunlop (2010) believes that fashion blogs attracts not only children but female gender at a larger scale and for online marketers this is useful platform to influence customers and to create interest about particular brand. The power of blogs as medium of online marketing according to Schaer (2011) is not possible to ignore especially when organizations earn good revenue. This situation according to Owen and Humphery (2009) appears as trend setter for new business entrants who are not familiar with the power of online marketing and potential men, women and children markets.
2.1.17Negative impact of online marketing on online communities
Certain types of negative impacts of independent (internet marketing) variables appear along with positive impacts on dependent (online communities) variables. Internet is blamed to isolate from one another. However, there is mixed opinion on this issue. Rajani and Chandio (2004) denote that internet generates few negative impacts on online communities but cannot be blamed for user isolation. According to Kent (2008), the notion of trend setting among online bloggers and online service providers especially concerning with fashion industry creates craze among children and female buyers to shop massively. This generates negative impact on family life especially on children as they cannot understand weakening financial condition of the family.
Sullivan et al. (2008) note that despite the immense scale of positivity, internet has its negative consequences that appear as unethical use of internet by some users. The negative impact is always great on users who use internet in isolation and prefer to be isolated from other community members. Such users ignore online safety rules and sometimes become victim of online criminals who introduce them with sexual industry and latter attracts users to join this industry. This situation is extremely harmful for children who cannot distinguish between the positive or negative use of internet.
2.2.1The Resource-Based View Theory (RBV)
The RBV of a firm has emerged as an important theoretical perspective to understand the linkage between information technology and firm value. The theory maintains that resources that are valuable, rare and imitable can lead to sustainable competitive advantage (Bharadwaj, 2000:170). The RBV is a theory which emphasizes the internal capabilities of the organization in formulating a certain strategy to achieve a sustainable competitive advantage in its markets and industries (Caldeira & Ward, 2003:103). In general, the RBV theory addresses the central issue of how superior performance can be attained, relative to other firms in the same market and posits that superior performance results from acquiring and exploiting unique resources of the firm (Caldeira & Ward, 2003:130).
The theory argues that competitive advantage can be generated by the unique “bunch” of resources and capabilities that a business has access to. The resources can be thought of as inputs that enable an organization to carry out its activities which can either be tangible (physical, financial and human resources) or intangible (intellectual resources and reputation). On the other hand, capabilities which are sometimes called “core competencies” are a cluster of attributes that an organization possesses, which in turn, allows it to achieve a competitive advantage, such as knowledge and special skills (Chen & Zhu, 2004). In relation to e-commerce or Internet innovation, the RBV theory is used to demonstrate how firms leverage their investments in Internet related issues to create unique Internet-enabled capabilities that determine firm’s overall commercial effectiveness. The RBV theory is embraced by several researchers in the e-commerce field (Powell & Dent-Micillef, 1997; Caldera & Ward, 2003; Ozituran & Roney, 2003; Zhu, Derick & Kraemer, 2004; Elliott & Boshoff, 2009).
Despite its wide acceptance by e-commerce researchers, the RBV theory has been criticized by others (Ozituran & Roney, 2003; Salwani et al., 2009; Hooley, Moller &Broderick, 1998 cited in Elliott & Boshoff 2009; Barney, 2001). These researchers agreed that the RBV is inwardly focused and static, rather than dynamic in nature. Barney (2001:12) added that a firm can be profitable by exploiting its internal resources, but the external factors ought also to be considered as they can affect the activities of a firm. Salwani et al., (2009) further indicate that a significant gap in literature regarding the application of the RBV of business as a means of understanding e-commerce performance exists, which makes it imperative to consider the E-value model as used in relation to analyzing the relationship between Internet marketing and business profitability.
After noting gaps in the RBV theory and the Technological, Organizational and Environmental model (TEO), Salwani et al., (2009) proposed the E-value model, which is a combination of the RBV theory and the TEO model. The general assumption regarding this model is that the usage of e-commerce is influenced by multiple factors which range from internal factors to external factors. The model combines the pre-adoption issues and postadoption issues of e-commerce usage and introduces the effect of a moderating variable (experience) on the relationship between the usage of e-commerce and business performance. It also introduces the effect of a mediating variable (back-end integration) on the relationship between e-commerce usage and business performance. The model then further links ecommerce usage to business performance.
This model was pre-tested in the Malaysian tourism sector by Salwani et al., (2009). It was thus found that the main advantage of this model was that it is a multi-dimensional research model which considers the pre-and post-adoption issues of e-commerce usage, its direct and indirect effects and the effect of the moderator and mediating variables. Salwani et al., (2009) argued that experience of implementing e-commerce has a strong contingent effect on the relationship between e-commerce usage and business performance, thus they included ecommerce experience as a moderating variable on the relationship between e-commerce usage and business performance in the model. They also proposed that the nature of the relationship between e-commerce usage and business performance is clarified by e-business capability such as back-end integration and subsequently included back-end integration as a mediating variable in the model. Salwani et al., (2009) argued that the RBV theory on its own is not sufficient to explain the issues of e-commerce usage, neither is the TEO theory. Therefore, Salwani et al., (2009) formulated the E-value model to examine the relationship between e-commerce and business performance. Salwani et al., (2009) found that ecommerce experience has a contingent effect on the relationship between e-commerce usage and business performance and back-end integration and e-commerce usage significantly influence business performance. Unfortunately, no previous literature criticizing this model exists, since it is a recent model in the field of e-commerce. However, it was found that a limitation of this model is that it is a newly developed model which has never been tried or tested by other researchers than Salwani et al., (2009).
2.2.4E-Value Model and Relative Adjustments
As the Internet and its related technologies are increasingly attracting the attention of many researchers and business managers, the literature on making use of the Internet for marketing purposes remains unclear, especially from the organizational perspective, particularly on the use of the Internet and value creation. A conceptual model that is not based on theory is needed for analyzing the complexity of internet applications and business performance (Avlonities & Kayarani, 2003:3; Melville, Kraemer & Gurbaxani, 2004:15). In a bid to solve this issue Salwani et al., (2009) as mentioned above developed an interactive, comprehensive and multi-dimensional theoretical model known as the E-value model. This helped to solve some missing links in the literature.
Although, Salwani et al., (2009) analyzed the relationship between e-commerce and business performance, this does not give a clear understanding on whether e-commerce applications such as internet usage can really improve business profitability, since performance is measured by a number of variables.
2.3.1Evidence from Developed Countries
The internet is being developed rapidly since last two decades, and with relevant digital economy that is driven by information technology also being developed worldwide. After a long-term development of internet, which rapidly increased web users and highly speed internet connection, and some new technology also have been developed and used for web developing, those lead to firms can promote and enhance images of product and services through web site (Mckinsey, 2011).
Mckinsey (2011) studied the impact of e-marketing on consumer goods and concludes that two billion people are connected to the Internet. Almost $8 trillion exchange hands each year through e-commerce. In some developed markets, about two thirds of all businesses have a online presence of some kind, and one-third of small and medium sized businesses extensively use Web technologies. The Internet has transformed the way we live, the way we work, the way we socialize and meet, and the way our countries develop and grow. In two decades, the Internet has changed from a network for researchers and geeks to a day-to-day reality for billions of people. Our research sheds new light on this revolution and helps explain the direct link between the Internet and economic vitality. Its impact on economic wealth reaches well beyond pure players in the industry. Indeed, the brunt of its economic contribution derives from established industries that in the shadow of the Internet, have become more productive, have created more jobs, have increased standards of living and have contributed more to real growth. Our research shows that more than 75 percent of the value added created by the Internet is in traditional industries (Mckinsey 2011)
Also, as with electricity, the Internet has influenced every corner of the world, not just those countries that pushed its original development or were instrumental in its growth. As Internet usage spreads to even the most remote communities—where gas-powered generators and satellite links make the connection—its observable positive effects grow. As evidence, the United Nations in its Millennium Development Goals lists Internet penetration as a key metric in efforts to reduce poverty and encourage rational development (Rugero 2003).
Many have compared the dawn of the Internet to another communications game changer, the introduction of the Gutenberg press five centuries earlier. But a comparison with the development and commercialization of electric power may be more appropriate. Among its many other consequences, electricity changed the landscape of cities around the world, allowing elevators that can travel great heights and heralding the dawn of massive skyscrapers. As with electricity, the Internet has changed the global landscape. The Internet bridges vast distances have made the world flatter by allowing instant access to an almost endless stream of information New McKinsey research (2011) has shown that the Internet not only delivers value to companies and users but also astonishing value to national economies.
Bush (2000), examined the significant benefits of e-marketing, the study find out that in France, the United States, and Germany, 40 percent of Internet users visit a price comparison Web site every month. They search for hard-to-find items or information (total search requests totaled more than 1 trillion in 2009). They communicate and play without leaving their keyboards as new means of communication replace traditional ones. While landline and mobile voice share of the communications portfolio decreased by 7 percent between 2008 and 2010, Internet users spent 11 percent more time using social networking Web sites. They now spend as much time on social network Web sites as they do writing e-mails. The way people learn is also changing. Online video classes have allowed teachers to remove the one-size-fits-all lecture from the classroom, enabling students to learn at their own pace with online content and using class time for exercises and interactive activities.
In the 1990s relationships with customers and suppliers became the focus (Boon and Kurtz, 1999). Utilizing of internet for marketing has been a natural progression and particularly matched the relationship marketing concept. The internet permits businesses to communicate with consumers more quickly, powerfully and sometimes more cheaply. It has also helped marketing firms to gather consumer data, customize production and target potential customers (Bush et al, 2000).
Spurred by the economic growth offered by the internet and related technologies, many organizations are engaging in e-commerce activities and internet marketing. E-commerce can be defined as any economic transaction whereby a buyer and seller come together through the internet or other technology, form and execute agreements regarding the pricing and delivery of products and services (Guay & Ettwein, 1998; Standifird, 2001). Whilst internet usage at all levels continues to grow, online purchases by businesses and consumers are booming (Sheehan & Doherty, 2000). One area of internet marketing which has exploded in sales and customer interest is online auctions. Consumers will spend about $7 billion via online auctions in the next four years. In 2003 alone, auction sales among retail sites were projected to generate sales of $2.1 billion (Collett, 2000).
Even more ambitious growth is predicted. They expect consumers to spend $19 billion on online auctions by 2003 (Freedman, 2000). Where computer speed and capacity double every 18 months, the internet seems to double in capacity every 18 weeks (Mack, 2000). The extent of the use of the internet for marketing is growing at such a rate it is difficult to pin it down. A survey of U.S. online households found that 47% had made online sales within the previous six months (Abrahamson, 2000) and U.S. consumers spent at least $2.3 billion over the internet during the 1998 Christmas season alone (Mack, 2000). The total 1998 e-commerce is estimated to have reached $102 billion (Abrahamson, 2000).
With this much purchases activity online it is not surprising that the estimated number of Fortune 500 organizations with a Web presence enhanced in 1996 from 175 to 400 (Bush et al, 2000). The extent of internet marketing even includes those involved in traditional marketing areas, as approximately 88 percent of all publishers are now taking subscription orders via the Web (Harvey, 1999). Generally there are few areas of western society that have not been affected by internet marketing. There is definitely money to be made especially for the companies doing the marketing. In 1998, internet advertising, generated revenues of $1.92 billion, compared to $1.58 billion generated by traditional outdoor advertising (Abrahamson, 2000).
Lead generation is the process of creating sales leads. The leads may come from various sources or activities, for example, digitally via the Internet, through calls and list purchase. Companies may also rely on referrals, telemarketers, and advertisements to generate leads (David 2011). Online lead generation is a very rapidly growing and evolving arena as new methods for online lead generation are tested and other ones are refined to produce greater results. Online lead generation includes payper-click models; search engine optimization activities; video marketing; downloading free (or paid) information in exchange for lead info; responding to surveys; registering for online services; webinars; in short, any other way that you can observe or imagine how to inspire an individual to enter their name and email (or more info) online could be a component of lead generation (David 2011).
Specific conditions that characterize industrial markets, such as long-term buying processes and demand for quality customer service and closer relationships with the customers, often makes accountability (i.e., performance measurement) of certain sales management activities a quite stringent task. Upon this matter, Churchill et al. (1992) argued that performance is behavior evaluated in terms of its contributions to the goals and objectives of the organization. Thus, performance of selling and marketing efforts is often judged on the basis of not only sales but also on other criteria that are essential to business- to-business marketing, such as implementation of sales leads and improvement of customer relationships.
In the same spirit, Bondra and Davis (2006) state that the measures of IT (i.e., the Internet) performance should be closely linked to the objectives that were to be achieved through its applications by the sales and marketing departments. The Internet is an out-directed IT that can be used both as a direct sales channel and as an interactive communications tool (i.e., sales force and marketing tool). Thus, it may affect sales performance in two ways: (a) through achieving direct sales (i.e., via the WWW); and (b) indirectly, through enhancing inter organizational relationships and implementing sales leads (i.e., via e-mail communication), providing higher levels of productivity (i.e., increase of sustainable customer shares). Although the potential of the Internet, viewed as a direct sales channel, for company profitability is unquestionable.
2.3.2Evidence from Developing Countries
Haynes et al., (1997) confirmed that the most important use of the internet amongst participants in a mail-survey was as a tool for ‘obtaining and disseminating information’ and Bennett (1996) concludes that the greatest assistance the firm gets from the internet is as an information-gathering tool. Daniel and Wilson (2002) note that this type of use may represent a good starting point for those yet to adopt the internet, as notion supported by Peet et al (2001) that suggests accessing information is the early stage of internet use by SMEs.
This use of the internet is commonly accepted by developing nations (Ainscough & Luckett 1996; Benjamin & Wigand 1996; Hamill & Gregory 1997; Hamill 1997; Hoffman & Novak 1996; Paul 1996; Samiee 1998; Sparkes & Thomas 2001) as the most ‘fundamental’ use of the internet, and hence as the first stage of adoption.
Ashill et al., (2006) offer a view relevant to this research; suggesting the internet is at its most useful when used as an information exchange along the value chain, highlighting the need to examine the value system of an industry. The internet provides for a shift in one-way information flows, to two-way information exchange, on to 1:1 dialogue between suppliers and customers (Kiani 1998). Lynch and Ariely (2000) conclude that retailers of wine should provide transparent information on quality and other aspects of wine to assist in reducing the search costs of consumers.
Web sites present simple tools to both distribute and gather information (Hamill & Gregory 1997). Many firms are using them to conduct market research and examine competitor offerings (Goodman 2000; Haynes 1997), using the seemingly endless resources available (Hamill 1997). The information available for research is so vast that the practical problem is selecting web site addresses, reliable sources and doing so in a timely manner. Heinen (1996) describes the chaotic nature of the internet’s architecture leading to problems with sourcing information, as does Sandelands (1997) whilst Rowley (1996) points out the biggest problem with the internet is retrieving exactly what you want.
Mathur (1998) conclude that World Wide Web is an information distribution system and as such all firms should actively use it in their business activity. As a medium, the information is rich, dynamic and visual (Herbig and Hale 1997). As an information source it has greater influence on decision making than any other medium (Hoey 1998). Daniel and Wilson (2002) point out that for the smaller firm, information use is the place to start with adopting the internet. When integrating the internet into marketing practice, though, it is essential to move beyond Information and engineer the fundamental processes in the business (Sandelands 1997), to use the internet to work with, and automate, information flows; this is one of the challenges facing marketers in the twenty-first century (Culkin et al 1999). This is addressed in Stage Two (Business Process Use) of this framework.
Although information transfer is one of the greatest uses of the internet, it is how the information can be used that gives greatest scope for firms to move beyond traditional constraints. Establishing business processes using the internet that automate information dissemination may provide opportunities to increase the effectiveness and efficiency of business communications and coordination (Ainscough & Luckett 1996; Morgan 1996; Poon & Swatman 1997).
Quelch and Klein (1996) conclude that using the internet for automating business activities will redefine business processes themselves, creating new opportunities for innovative firms. Both Morgan (1996) and Rowley (1996) position the internet as a tool to provide sales support to consumers and trade customers through the use of online catalogues and searchable databases for problem solving. This level of sales support is so important it may well be viewed as redefining the distribution functions of intermediaries (Rowley 1996, p.35).
2.3.3Evidence from Nigeria
With the recent emergence of Nigeria as the largest economy in Africa, the need for customer convenient marketing and service delivery in the banking sector has become more imperative. Studies have shown that Nigeria has the second largest financial services sector in Sub-Saharan Africa, after South Africa and it is fast growing and expanding internationally (Becker et al., 2008). Electronic banking (e-banking) has changed the face of commercial banking in recent times by bridging geographical, industrial and regulatory gaps as well as creating innovative products and services and more market opportunities for both banks and customers (Liao and Cheung, 2002; Khan and Karim, 2010). Therefore, banks have employed internet marketing to exploit such opportunities and provide services to their customers at their finger tips
Pikkarainen(2004) examined E-Marketing as a Firm’s Promotional tool and Its Impact on Consumer Perception and conclude that the rapid technological diffusion makes the internet the best way to provide customers with banking services regardless of the limits of time and geography. And that’s what makes banks consider the internet as an important part of their strategic plans. Internet technology has changed the design and the way of delivering the financial services and as a result the banking industry has made continuous innovations – especially in the field of communications and information technology – that ultimately led to the emergence of the idea of what is known as the “online banking”. Banking services through the internet is a way to keep the existing customers and attract others to the bank (Pikkarainen, 2004).
As a result of its perceived benefits, internet marketing or electronic banking has attracted a lot of scholarly attention. Hitherto, studies have focused on Internet Banking- Benefits and Challenges in an Emerging Economy (Jayshree Chavan, 2013); E-Marketing – A literature Review from a Small Businesses perspective (Hatem El-Gohary, 2010); Electronic Banking And Bank Performance In Nigeria (Abaenewe, 2013); E-Banking in Developing Economy: Empirical Evidence from Nigeria (Elisha Menson, 2010); Impact of Mobile Banking on Service Delivery in the Nigerian Commercial Banks. The Challenges & Profitability of ebanking (Daramola, et al, 2014); Empirical Evaluation of Customers’ Use of Electronic Banking Systems in Nigeria (Onyedimekwu O. and Oruan M., 2013)
According to Harridge-March (2004) if mobile telephones, digital TV are to be used as tools with which to access the Internet, the term “Internet marketing” is not so correct, and the term “interactive marketing” or “electronic marketing” is more appropriate.
Strauss and Frost, (2001) defines E-marketing as the use of electronic data and applications for planning and executing the conception, distribution, promotion, and pricing of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. It affects traditional marketing by increasing efficiency in traditional marketing functions, and the technology of e-marketing transforms many marketing strategies.
According to Gbadeyan and Akinyosoye, (2011) E-marketing is described as the achievement of marketing objectives through the use of electronic communications technology. It is further identified that the key success factors in e-marketing is achieving customer satisfaction through the electronic channel in terms of the ease of use, performance and quality of service (Smith and Chaffey,2001).
This idea of e-marketing concept is seen as broader in scope. An alternative perspective was provided on e-marketing by Chaffey et al. (2006) by the term “Internet Marketing”; which they described as the “Application of the Internet and related digital technologies to achieving marketing objectives”. Digital marketing is another term which has similar meaning to “electronic marketing” and now increasingly used by Specialist Marketing Agencies (Chaffey et al, 2006). Therefore, the terms E-Marketing, Internet Marketing and Digital Marketing can be described as synonymous.
According to Zeithaml et al. (2002) online security and privacy is of consumers’ major concern when they decide whether or not to engage in electronic transactions. Internet is changing the rules by which marketing is conducted and new consumer market structures emerge (Peterson, Balasubramanian and Bronnenberg 1997).
Levy (1996) believes the Internet would ultimately become “the medium by which we keep in constant contact with our families, watch television, dash off a note to a friend, check the traffic, read the newspaper, prepare a report for work, make a phone call, buy a book”. The volume and tendency of the Internet transactions reflect a more and more important role the Internet is playing. According to Cyberatlas.com (2001c), consumers spent $59.7 billion on line in 2000, and at the end of 2004, worldwide B2B Internet sales transaction are forecast to reach $6 trillion (Cyberatlas.com 2001d).
Varadarajan and Yadav (2002) indicate that Internet enhance the effectiveness and efficiency of marketing mix element (4P) except the actual distribution of non-digital products focusing on the shift of the traditional physical marketplace to the hybrid one that encompass both physical and electronic marketplace non considering the competitive strategy of pure-Internet firms. On the other hand Kalyananam and McIntyre (2002) present the e-marketing mix as compared to the conventional marketing mix. Their e-marketing mix contains seven extra element thought to be essential for e-marketing, including personalization, customer service, privacy, site, community, security and sales promotion. According to Kalyananam and McIntyre (2002) e-marketing mix has more overlapping element and the integration of those elements is more common as compared to the traditional one. Also it is important that Internet diversifies the pricing mechanism online (Hou and Rego, 2002).
This chapter dealt with research methodology and procedure adopted for the study. It was discussed under the following; research design, population of the study, sample and sampling technique, research instrument, method of data collection, method of data analysis and validation of instrument.
The study employed descriptive survey design method in the process of data collection. The method entailed identifying population of study and collection of data through questionnaire administration.
3.2Population of the Study
The population for this study covers radio stations such as Radio Nigeria, Fresh FM, Splash FM, Beat FM, IBR FM, Petals FM and Jamz FM who operate e-marketing strategies. The population of radio stations in Ibadan metropolis is twenty-two (22). The population of the staff for all the radio stations were seven hundred and five (705) out of which Radio Nigeria staff were 396. The population selected was designed to obtain adequate and diverse views pertaining to the level of e-marketing adopted by the media houses.
3.3Sample Size and Sampling Procedure
From the population distribution, a sample size of one hundred and fifty (150) respondents were randomly selected from the total radio stations staff population of seven hundred and five (705) using convenience sampling procedure. Convenience sampling procedure was used because it allowed equal chance for every element of the population.
3.4 Type of Data and Instrument for Data Collection
Primary data was used to gather data for this study through a structured questionnaire. The instrument for data collection was a self-administered questionnaire. It contained a list of twenty five (25) items that elicited response from respondents. The questionnaire was divided into two sections. Section A requested for demographic data of respondents. In section B, respondents responded to items related to the psychographic data. The Likert questions were scaled from “strongly agree” scoring “1 “to “strongly disagree” scoring 5. Where a statement was “Neutral” (NA), a score of “3” was accorded. In order to arrive at a very successful outcome, the questionnaires were given to the respondents to carefully study and provided very accurate answers, ample time was given to complete the questionnaires.
3.5Validity of the Instrument
The instruments were submitted to experts in the field of Business Administration. The experts were asked to review the items in the instrument and determined whether the items measured the information it was designed to elicit.
After some minor modifications, the instrument was subjected to further validation with rotated component matrix which result determined the validity of the instrument. If the entire questionnaire has a value greater than 0.35 in each row then the instrument is valid.
3.6Reliability of the Instrument
Extend to which a variable set of variables is consistent in what it is intended to measure is known as reliability (Hair et al., 2007). In the study, the coefficient of alpha (Cronbach Alpha) was used to test the reliability of the measured scale. According to Sekaran (2007), the closer the reliability coefficients get to 1.0, the better it is, and those value over 0.80 are considered as good. The value in the 0.70 range is considered as acceptable and those reliability value less than 0.60 is considered to be poor (Sekeran, 2007).
To determine the impact of e-marketing on internally generated revenue, this study adopted the format of simple linear equation model:
Y= a + bX
This above linear equation model was modified by stating functional model below:
IG = f (EM)
The models for this study is structurally stated thus:
IG = G0 + a1EM + ? —————————————– 1
EM is the independent variable measuring e-marketing.
IG is the dependent variable measuring Internally Generated Revenue,
This equation is the well-known equation of a straight line with G0 as the intercept on the Y axis and G1 the slope of the line. G1 indicated the change in Y for a unit change in X. If X is a fixed quality, then equation is called a regression equation of Y on X. ? is the random error from the observation captured the effects of other non-specified factors. G0 and G1 are the population parameter and were referred to be the regression coefficients.
3.8 Method of Data Analysis
The data gathered was carefully analyzed with the aid of Statistical Package for Social Science (SPSS) version 19 using various statistical tests with the aim of providing solutions to the research problems as well as validate or invalidate the research hypotheses.
The collected data was described by making use of descriptive statistics, which enabled the researcher synthesized and summarized the qualitative data. The descriptive statistics described the sample in terms of the responses to the questions using frequencies counts and simple percentage. Frequencies are the number of times a response has occurred while simple percentage is converting the frequency into proportion or percentage.
One of the most frequently used techniques in economics and business research is to find a relation between two or more variables that are related casually. This technique is called regression analysis. It is a statistical tool for evaluating the effect and relationship of one or more independent variables to a single continuous dependent variable Y. This is mostly often used when the independent variable are not controlled as when collected in a sample survey or other observational studies. Specifically, Regression analysis was used to examine the significant effect of withdrawal limit policy on business pattern of the public.
RESULTS AND DISCUSSION
This chapter presents the findings of the study. The results of the data collected were presented in relation to the research questions and hypotheses formulated for this study. One hundred (150) copies of questionnaire were administered. For efficiency, the researcher properly monitored the administered questionnaires but, retrieved one hundred and twenty-four (124) copies. To clearly present and discuss the results, this chapter presented the analysis of tested hypotheses. To tests the hypothesis, regression analysis was run through Scientific Package for Social Science (SPSS), then the result was discussed below:
TABLE 4.1: Socio-Demography Characteristic of the Respondents
ITEMS FREQUENCY (N = 124) PERCENT (100percent)
Highest Educational Qualification
Source: Survey, 2018
From the Table 4.1, male respondents were more than female respondents. With the Male 56 percent and the female 44 percent of the entire population sample. Also, 30 percent of the respondents were within the ages of 18-30, 32 percent of the respondents were within the ages of 31-39, 21 percent of the respondents were within the ages of 40-49, 17 percent of the respondents were within the age of 50-above.
The Table also showed that 40 percent of the respondents were single, 68 percent of the respondents were married, while 9 percent of the respondents were of different opinion. This indicated that majority of respondents were married. 17 percent of the respondents were with S.S.C.E qualification, 18 percent of the respondents were with OND/NCE qualification, 52 percent were with HND/BSc qualification, 23 percent of the respondents were with MSc qualification while 13 percent had other certificates.
The Table also indicated that 50 percent of the respondents were Christians, 47 percent of the respondents were Muslims, while 3 percent of the respondents were traditional worshipers.
4.2 RESULT ANALYSIS
TABLE 4.2.1: Respondents’ views on the relationship between E-marketing and Internally Generated Revenue of Radio Nigeria
VIEW ON THE RELATIONSHIP BETWEEN E-MARKETING AND INTERNALLY GENERATED
REVENUE OF RADIO NIGERIA AGREED DISAGREED UNDECIDED TOTAL
Frequ- ency % Frequ- ency % Frequ- ency % Frequ- ency %
Organization cannot ignore e-marketing while designing its marketing plan as it is a double-edged sword which can generate revenue 84 68 34 27 6 5 124 100
E-marketing has great potential for both consumers and marketers but consumers may vary in their level of adoption of e-marketing 66 54 45 36 13 10 124 100
Organization has join the online business community and adopted the Internet in their daily marketing 49 52 40 41 7 7 124 100
The media sector (Radio Nigeria) has not been left behind in adopting e-marketing strategy. 124 100 0 0 0 0 124 100
Internet is rapidly expanding and has affected the way business is performed and the way organizations compete 75 61 21 17 28 22 124 100
Source: Survey, 2018
Based on the respondents’ views on the relationship between e-marketing and internally generated revenue of Radio Nigeria. Table 4.2 indicated that 66 percent of the total response of strongly agreed that the organization cannot ignore e-marketing while designing its marketing plan as it is a double-edged sword which can generate revenue, 27 percent disagreed while 5 percent were not sure. 54 percent of respondents agreed that e-marketing has great potentials for both consumers and marketers but consumers may vary in their level of adoption of e-marketing, 36 percent disagreed, while 10 percent were not sure. 52 percent of respondents agreed and 41 percent disagreed that the organization have joined the online business community and adopted the Internet in their daily marketing.
The Table revealed also that 61 percent of the respondents strongly agreed that Internet is rapidly expanding and has affected the way business is performed and the way organizations compete, 17 percent disagreed, while 22 percent were not sure, 100 percent of the respondents strongly agreed that the media sector (Radio Nigeria) has not been left behind in adopting e-marketing strategy.
TABLE 4.2.2: Respondents’ views on the influence of environmental and organizational factors on Internally Generated Revenue of Radio Nigeria
VIEW ON THE INFLUENCE OF
ORGANIZATIONAL FACTORS ON INTERNALLY GENERATED
REVENUE OF RADIO NIGERIA AGREED DISAGREED UNDECIDED TOTAL
Frequ- ency % Frequ- ency % Frequ- ency % Frequ- ency %
New trends of doing business online to attract customers, to surf online, to evaluate the services or products of an organization has led organizations to use online marketing tools to deliver messages to customers 61 50 52 41 11 09 124 100
The spread and utilization of Internet marketing have improved the
profitability of organization 64 56 45 32 15 12 124 100
e-marketing brings sharp decline on customer patronage 66 51 59 46 4 3 124 100
Electronic marketing is a new concept used by the organization 74 60 42 33 8 7 124 100
e-marketing affects sales and reduces profit in media industry 124 100 0 0 0 0 124 100
The media are increasingly using this newborn medium to market their product and services and sharing new products ideas and information 55 45 41 33 28 22 124 100
Source: Survey, 2018
Based on the respondents’ views on the influence of environmental and organizational factors on internally generated revenue of radio stations, the Table 4.3 indicated that 50 percent of the respondents agreed that new trends of doing business online to attract customers, to surf online, to evaluate the services or products of an organization has led organizations to use online marketing tools to deliver messages to customers, 41 percent disagreed while 9 percent were not sure.
It can be proven that 56 percent respondents agreed that the spread and utilization of Internet marketing has improved the profitability of the organization, 32 percent disagreed and 12 percent were not sure.
The Table showed that 51 percent of the respondents agreed that e-marketing brings sharp decline on customer patronage with the 46 percent disagreed while 3percent were not sure. 60 percent of the respondents agreed that electronic marketing is a new concept used by the organization with 33 percent disagreed, while 7 percent were not sure.
Table above stated that 56 percent of the respondents agreed that e-marketing affects sales and reduces profit in media industry, 32 percent disagreed while 12 percent were not sure. 57 percent respondents agreed that the medias are increasingly using this newborn medium to market their products and services and sharing new products ideas and information, 33 percent disagreed while 22 percent were not sure.
TABLE 4.2.3: Respondents’ view on the effect of e-marketing usage on Internally Generated Revenue
RESPONDENTS’ VIEWS ON THE
EFFECT OF E-MARKETING USAGE ON
INTERNALLY GENERATED REVENUE AGREED DISAGREED UNDECIDED TOTAL
Frequ-ency % Frequ-ency % Frequ-
ency % Frequ- ency %
e-marketing gives economy of businesses resources 72 57 40 32 14 11 126 100
e-marketing improves investments, growth and development 70 56 48 38 8 6 126 100
The trend to market products online with a blend of online and offline strategies has produced success to the organization 89 71 25 20 12 9 126 100
E-marketing for its ability of being lower in cost and great accessibility, has become an important marketing tool while designing a company
strategic marketing plan 81 64 25 20 20 16 126 100
Source: Survey, 2018
Based on the respondents’ views on the effect of e-marketing usage on internally generated revenue. Table 4.4 indicated that 57 percent of the respondents indicated that e-marketing gives economy of businesses resources, 32 percent disagreed while 11 percent were not sure. From the above Table, it showed that 56 percent of respondents agreed that e-marketing improves investments, growth and development, 38 percent disagreed and 6 percent were not sure.
The Table also revealed that 71 percent of the respondents strongly agreed that the trend to market products online with a blend of online and offline strategies has produced success to the organization, 20 percent disagreed, while 9 percent were not sure. The Table also indicated that 81 percent of the respondents strongly agreed that e-marketing has ability of being lower in cost and accessibility. It has become an important marketing tool while designing a company strategic marketing plan, 20 percent of the respondents disagreed while 20 percent were not sure.
TABLE 4.2.4: Respondents’ views on effectiveness of the medias of e-marketing
VIEWS ON THE
EFFECTIVENESS OF THE MEDIAS OF E-MARKETING AGREED DISAGREED UNDECIDED TOTAL
Frequ-ency % Frequ- ency % Frequ-
ency % Frequ-
Internet has created new opportunities for marketers 63 50 55 44 8 6 126 100
The growth of the Internet as a marketing tool has progressed daily
since its inception 76 60 49 38 1 1 126 100
Electronic mail is an important medium for communication as it is low in cost and organization can contact their customers on regular basis 86 68 25 20 15 12 126 100
The cost factor is main reason for adoption of this media as marketing tool 76 60 40 32 10 8 126 100
While marketing through internet, a special attention should be paid to product characteristics and way to promote a product 75 59 31 25 20 16 126 100
Source: Survey, 2018
Based on the respondents’ views on the effectiveness of the medias of e-marketing, it can be proven that 50 percent of respondents agreed that Internet has created new opportunities for marketers, 44 percent disagreed while 8percent were not sure.
The table showed that the growth of the Internet as a marketing tool has progressed daily since its inception with 60 percent agreed, 39 percent disagreed while 1 percent were not sure. Table above stated that electronic mail is an important medium for communication as it is low in cost and the organization can contact their customers on regular basis, with 68 percent respondent agreed, 20 percent disagreed while 12 percent were not sure.
The Table indicated that cost factor is the main reason for adoption of this media as marketing tool, with 60 percent agreed, 32 percent disagreed while 8 percent were not sure. The Table above showed that 53 percent respondents agreed that while marketing through internet, a special attention should be paid to product characteristics and way to promote a product, 33 percent disagreed while 14 percent were not sure.
4.3Test of Hypotheses
Research Hypothesis One
Ho1: Organizational and environmental factors do not have a significant influence on e-marketing usage and internally generated revenue of Radio stations.
IGR = a0 + a1of + ?
The dependent variable of IG (Internally Generated Revenue) regressed against the explanatory variables of ?1 (e-marketing) yielded the below tabulated estimates;
Table 4.1.1: Estimated Result
Variables Coefficients T-Statistics Sig.
OF 0.416 7.267 0.005
EF 0.242 4.379 0.002
Dependent Variable: IGR
R2 = 0.752 or 75.2%, F-ratio = 147 R2 = 0.747
4.3.1Interpretation of Result
The above suggested that Organizational Factor (OF) has effect on Internally Generated
Revenue. The value of constant (?0) of 0.416 with significant t-statistics value of 7.267 implied that the value of Internally Generated Revenue at zero level. Environmental Factors (EF) has a coefficient of (0.242) with significant t-statistic value of 4.379. The result implied that this variable has positive influence on Internally Generated Revenue.
Going by the result of coefficient of determination (R2) value of 75.2% this gave insight into statistical relevance of the study. The result depicted that about 75.2% systematic variation in Internally Generated Revenue was explained by Environmental Factors while the remaining 24.8% was attributed to exogenous or extraneous factors outside the focus of this study.
Adjusted R-squared (R2) value of 0.747 or 74.7% also supported the result of R2 which indicated
that the study has a proper goodness of fit and gave better satisfactory result
The F-ratio observed of 147.33 was significant as it is greater than the tabulated value of 8.53. The result depicted that the influence of environmental factor on internally generated revenue cannot be ignored since the computed value was greater than tabulated value.
Summarily, the above result depicted that organizational and environmental factors have significant effects on Internally Generated Revenue therefore the null hypothesis (HO) was rejected.
4.3.2Research Hypothesis Two:
Ho2: There was no significant relationship between e- marketing usage and internally generated
revenue through consideration of the effect of a moderating variable (such as internet marketing
Table 4.1.2: Pearson product moment correlation showing the significance ** relationship between e-marketing usage and Internally Generated Revenue
e-marketing usage Internally Generated Revenue
E-marketing usage Pearson
N 1 .762**
Internally Generated Pearson
N .762** 1
.000 150 150
Correlation is significant at the 0.01 level (2-tailed)
The Pearson Product Moment Correlation was used in testing this hypothesis. The result showed that there was positive relationship between e-marketing usage and Internally Generated Revenue of the low/middle income group and that this relationship was significant (r=0.762, p<0.01). Consequently, the null hypothesis (Ho) which stated that there was no significant relationship between e- marketing usage and internally generated revenue through consideration of the effect of a moderating variable was rejected as it has a two–tailed significance of 0.762 and concluded that there was a significant relationship between e- marketing usage and internally generated revenue through consideration of the effect of a moderating variable (such as internet marketing experience).
4.3.3Research Hypothesis Three:
Ho3: Media of e-marketing (i.e. email marketing, mobile marketing, web marketing and internet marketing) does not support a Radio Nigeria marketing effort
Table 4.1.3: Estimated Result
Variables Coefficients T-Statistics Sig.
e-marketing 0.113 3.333 0.002
Marketing effort 0.091 1.608 0.012
R2 = 0.719 or 71.9% R2 = 0.683 F-ratio = 20
Interpretation of Result
The regression model result in table 4.3.3 indicated that the R2 (R-squared) approximately 71.9 percent, and this showed a very good fit, meant that there was a strong relationship between the variables used. Thus, it showed that 71.9 percent (71.9%) changes or variation in e-marketing (EM) were explained by Marketing efforts, leaving 28.1 percent (28.1%) changes or variations in e-marketing (EM) to the error term. The goodness of fit result thus showed that there was a strong positive impact of e-marketing (EM) on Radio Nigeria marketing effort.
The F-statistics which measured the overall significance of the model showed that we rejected the null hypothesis (Ho). The F-statistics showed that the model was statistically significant, and as such, we stated that media of e-marketing (i.e. email marketing, mobile marketing, web marketing and internet marketing) does not support a Radio Nigeria marketing efforts.
4.4Discussion of Findings
The finding revealed that e-marketing has significant effects on internally Generated Revenue therefore the null hypothesis (HO) was rejected. Organizational and environmental factors have a significant influence on e-marketing usage and internally generated revenue of Radio Nigeria. This correlated with the findings of Makash (2013) who proposed that any showcasing action in the web ought to consider electronic marketing. E-marketing essentially contributes in the economy of business assets as contrast with conventional advertising channels. Hatem (2011) highlighted, However Electronic Marketing (E-Marketing) is still a moderately new idea, especially for associations working in creating nations that have restricted assets, awful foundation, and solid rivalry and cannot bear to settle on indiscreet speculations or wrong choices.
The study also revealed that there was no significant relationship between e- marketing usage and internally generated revenue through consideration of the effect of a moderating variable (such as internet marketing experience) therefore the null hypothesis (HO) was rejected. This correlated with the findings of Sally (2004) who said that amid the most recent decade numerous associations have added to some type of Internet vicinity. He considered electronic promoting, the most recent kind of advertising, utilizing the well-known structure of the seven Ps of showcasing – product, price, promotion, place (distribution), process, physical proof, and persons – trying to assess electronic and its potential commitment by and large. He presumed that whilst not every advertiser grasps the utilization of the Internet, this “new child on the square” has turned into an acknowledged piece of showcasing action. He additionally inferred that electronic promoting does not possibly supplant conventional advertising endeavors. It ought to be seen as an important and corresponding apparatus, and supervisors ought to grasp new innovation with a specific end goal to make more prominent worth for clients. Shu (2004) also proposed that direct marketing is the utilization of the phone and no individual media to convey item and authoritative data to clients, who then can buy items by means of mail, phone, or the Internet.
The study also revealed that medias of e-marketing (i.e. email marketing, mobile marketing, web marketing and internet marketing) supported a Radio Nigeria marketing effort, therefore the null hypothesis (HO) was rejected. This is in line with the findings of Constantinides, (2004) who stated that Internet marketing is all about developing a robust and attractive webpage which is scale in traffic because a firm planning to expand its business through online presence needs to pay special attention to deliver quality online experience. Dysfunctional and poorly designed websites are potential threats to company’s online existence as well as physical activities. Clayton & Crisiscuolo (2002:32) also indicate that firms that use e-commerce are more likely to assess their innovations as having high positive impacts on firm performance than those who do not make use of e-commerce.
SUMMARY, CONCLUSION AND RECOMMENDATIONS
This study examined the impact of e-marketing on internally generated revenue of some selected radio stations in Ibadan with a perspective from Radio Nigeria, Oyo State. The previous chapter focused on the analysis of the data which was collected from the field and the discussion of the results using descriptive and inferential statistical analysis. With special reference to the results discussed in the previous chapter, this chapter focused on summary, conclusions and made recommendations.
The major findings of this study were summarized below:
Organizational and environmental factors have a significant influence on e-marketing usage and internally generated revenue of Radio Nigeria therefore the null hypothesis (HO) was rejected. There was a significant relationship between e- marketing usage and internally generated revenue through consideration of the effect of a moderating variable (such as internet marketing experience), therefore the null hypothesis (HO) was rejected.
Medias of e-marketing (i.e. email marketing, mobile marketing, web marketing and internet marketing) supported Radio Nigeria marketing effort, therefore the null hypothesis (HO) was rejected.
The study empirically investigated the impact of e-marketing on internally generated revenue of some selected radio stations in Ibadan with a perspective from Radio Nigeria, Oyo State. It showed that e-marketing has a significant influence on internally generated revenue. The growth of the Internet as a marketing tool has progressed daily since its inception. Over the last decade, organizations in all sectors of the economy rushed to join the online business community and adopted the Internet in their daily business activities. It is widely recognized that Information and Communication Technologies (ICTs) such as the Internet are rapidly expanding and have affected the way business is performed and the way organizations compete. E-marketing has become an important part of marketing planning, so topic has gained special attention among researchers.
New trends of doing business online to attract customers, to surf online, to evaluate the services or products of an organization has led organizations to use online marketing tools to deliver their messages to customers. The trend to market products online with a blend of online and offline strategies have produced success to companies that are using online marketing strategies to execute their business in virtual business environment that has no boundaries.
E-marketing has ability of being lower in cost and great accessibility, it has become an important marketing tool while designing a company strategic marketing plan. It has given rise to customer bargaining power and intense competition for companies in global markets. No doubt internet and e-marketing have great potential for both consumers and marketers but, consumers may vary in their level of adoption of e-marketing and internet. Internet has created new opportunities for marketers. Companies are developing sophisticated and modern e-marketing tools and these have made competition tougher than ever before. Companies are now exploring newer marketing channels which are good strategic moves. While marketing through internet, a special attention should be paid to product characteristics and way to promote a product.
Sequel to the findings of this research, the under listed recommendations were made;
Due to the widespread use of mobiles, smart phones and tablets, it is necessary for companies to create content that is accessible and users’ friendly to mobile users. Otherwise, it is easy to lose customers to competitors who have already adapted this trend.
As the majority of the consumers value comfort and convenience. So companies can effectively use this tool to satisfy their consumers at home by maintaining up to date information on their websites.
Online Surveys should be conducted by the companies to know about the preferences of their consumers. Brand preference can be created by e-marketing and discounts and free gifts will enhance the sale of the product.
E-marketing is considered the best communication tool that works as bridge between companies and consumers. Companies are using this tool but, to a limited extent i.e. one way communication with customers. Companies can improve the efficiency and effectiveness of this strong tool with little effort and ease by getting consumers’ feedback. This two-way communication process would ultimately assist in enhancing the capability of this media.
In view of the benefits associated with the adoption of internet marketing, Commercial media houses in Nigeria should adopt some measures to ensure the effective utilization of the internet as a strategic marketing tool in their marketing operations.
Media houses should not only provide internet service facility but should also focus on how to improve on other forms of internet marketing activities such as telemarketing, catalogue marketing, direct mail, e-payment, e-marketing, e-commerce and e-business.
5.4Contribution to Knowledge
The study has advanced existing knowledge by addressing the potentials of e-marketing usage and its relationship to internally generated revenue of some selected radio stations in Ibadan from a multi-dimensional perspective through the use of both internal and external factors. It provided empirical evidence for the impact of e-marketing usage on business profitability by focusing on the moderating effect of e-marketing experience. The research has thoroughly contributed to the importance of e-marketing and its dimensions (i.e. e-mail marketing, mobile marketing and web marketing) for stimulating positive consumer perception. The research supported the view that marketing efforts should be switched from traditional marketing channels to e-marketing.
5.5Suggestion for Further Studies
This research was conducted in one geographic area (Ibadan) and there is need for it to be replicated in other areas. Further research in this emerging area is needed, with possibilities for using this framework as an experimental method to examine and measure profitability and internally generated revenue before implementation and progressively during and after, implementation.
Further research should extend their scope to other major industrialized cities in Nigeria and test other models that this study could not cover. This will enhance a more directed focus on strengthening online marketing vis a vis actual consumers’ purchases in Nigeria.