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INTERNET MARKETING PRACTICES
AND CUSTOMER LOYALTY: EMPIRICAL
EVIDENCE FROM OGUN STATE,
NIGERIA
Lecturer Azeez Adekunle ALIU
1*
, Researcher Oladeji F. AGBETOKUN
2
[1]
The Federal Polytechnic, Ilaro, Ogun State, Nigeria
[2]
Federal Institute of Industrial Research, Oshodi Lagos, Nigeria
Abstract
The study investigated the effects of internet marketing on customer loyalty at Jumia Nigeria
Limited. The objective of this study was to determine the significant effect of internet marketing
practices adopted by Jumia on customer loyalty. The study used descriptive survey research
design. Primary data were collected through the use of structured questionnaire. As a result of the
large population, the study used convenience sampling technique to select 120 respondents,
possibly those who have done any transaction with jumia.com in Lagos Nigeria. The study shows
that the various measures of internet marketing such as Social Media Marketing, Email Marketing,
Search Engine marketing have a significant effect on customer loyalty. Therefore, it was concluded
that internet marketing is an essential tool for customer loyalty. Based on the research findings,
organizations should on daily basis send update about products availability and functions to
numerous online users as such leads to online store recognition which in turn enhances customer
loyalty.
Keyword: internet marketing, social media marketing, email marketing, search engine marketing
and customer loyalty.
JEL Clasification: M31
*
Corresponding author: Azeez Adekunle ALIU , E-mail: [email protected]
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I. Introduction
Today, Internet marketing is one of the fastest developing, growing and most
potent branch of marketing. Internet-based communication tools have also led to major
changes in the functioning of various economic sectors such as marketing (Atshaya &
Rungta, 2016). This buttresses the creation of new roles in the marketing units of many
organizations today like Digital Marketing, New Media, Innovation Managers and so on.
Laudon & Traver (2013), refer to internet marketing or online marketing as the
marketing activities using various channels on the internet, this includes, search engine
optimization, pay per click, social media marketing, e-mail marketing, web banners,
digital online advertising, online marketing platform, mobile marketing (apps), content
marketing to some extent, etc. Internet has increased the richness of marketing
communications by combining text, video, and audio content into rich messages. Thus,
the web is arguably richer as a medium than some traditional media such as the television
because of the complexity of messages available, the enormous content accessible on a
wide range of subjects and the ability of users to interactively control the experience.
Internet marketing is one of the most convenient and effective ways of marketing
these days and with the development in technology, its techniques and scope are also
developing. In the work of Chukwu and Uzoma, (2014) provided scientific evidences to
show that Nigerian consumer patronize online retailers very significantly. One wonders
what is responsible for the noted changes. Furthermore, Husain and Adamu, (2014)
pointed out that the use of social media especially the Facebook and twitter has been
playing an important role but whether these have encouraged actual online purchases was
not specifically stated.
Despite the numerous advantages of the internet in effective marketing in an
organization and industry, many Nigerians are yet to adopt this technology in their daily
buying and selling activities. Madu (2009) identified some of the factors that caused this
to include:
Illiteracy and poverty that negatively influence Nigerian consumers’ attitude
towards internet marketing and online sales.
Inability of Nigerians having access to the internet for the purpose of exchange
and transactions.
Absence or irregular power supply needed to power down transactions
(marketing) through internet for individuals and corporate organizations.
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Problems associated with interception by fraudsters in the use of internet for
marketing activities among individual, organization and institutions.
It is these problems that this paper sets out to solve in part. The main objective of
this study is to determine the significant effects of internet marketing on customer loyalty.
Derived from the above main objective are the following specific objectives:
1. To determine the significant effect of social media marketing on customer loyalty.
2. To find out the significant effect of email marketing on customer loyalty.
3. To evaluate the positive effect of search engine marketing on customer loyalty.
In order to give focus to the study, the following research hypotheses were tested
to guide the study:
H
01
: Social Media Marketing has no significant impact on customer loyalty.
H
02
: E-mail Marketing has no significant impact on customer loyalty.
H
03
: Search engine marketing has no significant impact on customer loyalty.
This paper is divided into five sections. The first is the introduction; the second
examines the literatures such as conceptual and theoretical frameworks of the paper; the
third section elucidates the research methods used; the fourth section presents the results
and discussion while the fifth section is the conclusion and recommendations.
II. Literature Review
II.1 Concept of Internet Marketing
The internet is becoming the most visited market place per unit of time among the
literate class of the Nigerian buying community. Literacy rate on its own determine the
proportion of the buying community who use the internet and make purchase therefrom.
The recent dramatic growth in the use of the internet has occurred because of the
development of the World Wide Web (Chaffey, Ellis-Chadwick, Mayer & Johnston,
2006). This is because the internet guarantees convenience more than the orthodox market
place for varieties comparability and price juxtaposition. Smith & Caffey (2002) define
internet marketing as the process of marketing online via e-tools such as web sites, banner
ads, opt-in email, interactive kiosks, interactive TV, mobiles or m-commerce. They
further posited that internet marketing involves getting close to customers, understanding
them better and maintaining a dialogue with them. It is broader than e-commerce since it
is not limited to transactions between an organization and its stakeholders, but includes all
processes related to the marketing concept.
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Internet marketing is often referred to as online marketing, digital marketing, web
marketing, or e-marketing. This is essentially any marketing activity that is conducted
online through the use of internet technologies. According to Chaffey et al., (2006),
internet marketing can simply be defined as achieving marketing objectives through
applying digital technologies. It is the application of internet and related digital
technologies in conjunction with traditional communications to achieve marketing
objectives. It comprises not only advertising that is shown on websites, but also other
kinds of online activities like email and social networking.
As the name suggests, it is the act of identifying anticipating and satisfying the
customer’s requirements effectively and efficiently at a profit through Internet. It is a type
of marketing and publicizing which utilizes the Internet to convey promotional marketing
messages to buyers. Internet marketing incorporates an extensive variety of marketing
components than conventional business marketing because of the large variety of channels
and marketing means accessible on the Internet (Atshaya & Rungta, 2016). According to
Krishnamurthy, (2006) as cited by Shien & Yazdanifard, (2014) Internet marketing is
referred to as the conduct of marketing activities using the internet or web and
information technologies. Salehi et al., (2012) also define Internet marketing as a form of
targeted marketing that helps various websites to increase the frequency of visits and
attracts visitors to purchase products, good and services through internet. The internet is
becoming a need to users as they can hardly do without using it per unit of time either to
read news, check traffic conditions, locate a place, solve a problem, compare prices of
products or make a purchase.
II.2 Concept of Social Media
Igyuve & Agbele (2017) described social media as specialised websites (such as
Facebook, Twitter, Mobofree, Eskimi, MySpace, Badoo etc) and applications (such as
Whatsapp, Instagram, Blackberry Messenger BBM, Skype etc) used for communicating
and establishing forms of relationship between/amongst people of similar interest.
According to Pinto & Yagnik, (2017) social media marketing consists of tools, platforms
and applications that enable customers connect and communicate with each other.
Yazdanparast, Joseph & Muniz, (2016) define Social media marketing as the process that
empowers promotion of websites, products, and services via online social channels. It
involve with marketing related activities such as blogging, sharing photos and posts
online. Today social media becomes fast advancing and most solid medium to connect
and stay informed about products and services (Rishi & Sharma, 2017). Social Media
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marketing is a part of internet marketing. It is a platform that can be used by anyone who
has an internet connection. Social media marketing can be easily characterized as a term
used to portray the act of increasing website traffic or brand awareness, using social media
networking sites. Social Media marketing mainly focuses on designing a content that is
very unique and helps in attracting the attention of the users. It should also persuade the
viewers to share it with others. This type of marketing is driven by eWoM electronic
word of mouth, which means it results in earned media instead of paid media (Atshaya &
Rungta, 2016).
Lamminen (2018) identified the most popular social network sites worldwide as
of January 2018, ranked by number of active users (in millions) are as it can be seen from
Table 1:
Table 1- Number of active social media users worldwide as at January 2018
Name of social media
Number of active users in millions
Facebook
2,167
YouTube
1,500
WhatsApp
1,300
Facebook Messenger
1,300
WeChat
980
QQ
843
Instagram
800
Tumblr
794
QZone
568
Sina Weibo
376
Twitter
330
Baidu Tieba
300
Skype
300
Source: Lamminen (2018)
Atshaya & Rungta, (2016) argue that Social media marketing can help the
organization to achieve various objectives. Some of the objectives could be increasing
website activity or traffic, increasing the awareness about their brand among the people,
creating a brand image and positive brand affiliation. They also stated that it would help
in enhancing the communication and connection with the potential customers. There are a
lot of Social media networking platforms, but each social media marketing sites would
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require different tools, techniques, or strategies of marketing. The following are some of
the Social media networking platforms or sites that are used for marketing: Facebook,
Instagram, Twitter, Google+, Pinterest, LinkedIn, YouTube and so on. Social media
marketing is so prominent today because it is cost-effective, highly retentive as customers
have access to them for a longer period than traditional marketing channels.
II.3 Concept of Email Marketing
In emerging as the fastest growing communications technology in history
(Chittenden & Rettie, 2003), e-mail has become an integral part of daily life (Grimes et al.
2007). E-mail shares a particularly close relationship with the internet, with most internet
sessions involving the use of e-mail (Tezinde et al., 2002; DuFrene, Engelland, Lehman &
Pearson, 2005; Reimers et al., 2016). The relationship between e-mail marketing and
online shopping is equally close. Not only does it serve to drive website traffic, it also
influences impulse buying on online websites (Dawson & Kim, 2010). And in the virtual
world of the internet where seller-buyer interactions are limited, e-mail serves as a vital
communication tool in customer relationship management. Moreover, such two-way
interaction can occur in real time (Chittenden & Rettie, 2003), thereby providing quick
convenient solutions for both buyer and seller (DuFrene et al., 2005). This has persuaded
many organisations to make e-mail marketing the cornerstone of their communications
strategy.
According to Atshaya & Rungta, (2016) email marketing is one of the most
prevalent ways for organizations to reach and gain more customers. It is a part of Internet
marketing. Email marketing is an approach that helps in reaching the customers directly
with the help of electronic mail. It basically helps in advertising the goods and services to
the customers directly. It is an approach that helps us to reach a lot of potential customers
effectively at a low cost. It helps in directly conveying the business' message with the help
of illustrations, content and links to the people who are not aware about the business or
considered using the products or services, but they are educated and interested in the
business’ area of expertise. Moreover the effectiveness of Email marketing can be tracked
easily. Various organizations additionally provide the customers or viewers with an
"unsubscribe" choice if they want to stop receiving the mails. Moreover, the organizations
can get direct feedback from the potential customers. This would help the organization in
recognizing what the customers liked or disliked about the promotion and in turn create
more effective future promotions or strategies.
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E-mail can be used for various marketing purposes, for example to share
information about products and services, to promote them, to build brands, to guide
customers to web sites, to alert customers, and to tell the status of orders. Marketers today
use various e-mail techniques, such as newsletters, reward programs and community
building (Brondmo, 2000; Roberts, 2001). Newsletters, as Brondmo, (2000) suggests, “are
perhaps the most common vehicles for establishing on-going dialogue with customers,
probably because they provide a terrific mechanism for communicating a highly
personalized blend of information, entertainment, and promotions.”
II.4 Concept of Search Engine Marketing
Search Engine marketing is an aspect of internet marketing. It is a process which
helps in promoting a website by increasing its visibility with the help of certain tools such
as paid advertisements, Search engine optimization, and other search engine services that
will help in increasing the search traffic to the website. Search Engine marketing is a
broader term compared to Search Engine Optimization. SEO is generally considered as a
part of SEM. SEO helps to achieve better organic search results, whereas SEM helps us to
target the users with the help of paid advertising links in the search engine results page
along with the organic search results so that the targeted users will visit the website.
Atshaya & Rungta (2016) submit that search marketers make use of a lot of paid search
platforms. Out of that the most predominant paid search platform is Google AdWords,
followed by Bing Ads and Yahoo. Beyond that, there are various other Pay Per click
platforms and in addition to that the PPC advertising opportunities on some of the popular
social media networks. Search engine marketing's most noteworthy quality is that it offers
sponsors the chance to put their advertisements before customers who are ready to buy a
particular product in that precise moment (Atshaya & Rungta, 2016).
Search engines came into existence to support the access to the huge amount of
information on the Internet by crawling, indexing, retrieving, and representing relevant
information for users based upon computer algorithms (Henzinger, 2007). In retaining
customer, search engines have become one of the important sources in consumers’ use of
the Internet to have access to products online (TIA, 2008). Generally, Search Engine
Marketing (SEM) is defined as a form of marketing on the Internet that business and
organizations seek to gain visibility on SERPs through paid or non-paid means (Moran &
Hunt, 2005). There are many forms of SEM, from paid inclusion to organic optimization.
The three major forms are: 1) organic search based techniques, i.e. Search engine
optimization, which involves employing methods that help improve the ranking of a
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website when a user types in relevant keywords in a search engine. These include creating
an efficient website structure, providing appropriate web content, and managing inbound
and outbound links to other sites; 2) paid inclusion, which means paying search engine
companies for inclusion of the site in their organic listings; 3) search engine advertising,
or paid placement, which implies buying display positions at the paid listing area of a
search engine or its content network. Google AdWords and Yahoo! Precision Match are
the two most popular programs currently, wherein paid placement listings are shown as
“Sponsored Links”.
II.5 Concept Customer Loyalty
The positive effect of loyal customers on business performance (Lee et al., 2003)
in competitive markets of our age (Anderson and Mittal, 2000; Perreault et al., 2013), in
the condition where the cost of acquiring new customers is higher than retaining current
customers (Keisidou et al., 2013; Kumar et al., 2011; Lee et al., 2003) are gradually
increasing the significance of customer loyalty. Customer loyalty is the commitment of a
customer to repurchase a firm's products and services, despite all actions of competitor
businesses and to commit to become a client of that business on a regular basis in the
future (Dick & Basu, 1994; Oliver, 1999). Singh & Khan, (2012) defined customer loyalty
as the willingness of any given customer to purchase the company’s goods or services
over competitive ones available in the marketplace. Customer loyalty is the customer
attitude and behavior to prefer one brand over all competitor ones, whether? due to
satisfaction with the product or services (Magatef & Tomalieh, 2015).
According Shien & Yazdanifard, (2014) loyal customers who are satisfied with
the services or goods provided by the firms or organizations may recommend to their
network circle. This can help to expand the market by increasing number of customer and
customer loyalty provided with customer satisfaction. They further argue that internet
marketing uses different effort to meet the customer expectation and e-satisfaction on
websites and different factors contribute to influence e-satisfaction and eloyalty. Due to
lack of indirect communication, e-loyalty can be easily influenced because customers can
always switch to another website to purchase services or goods. Magatef &Tomalieh
(2015), identified fifteen benefits of a customer loyalty to business organization, these are:
Retain existing customers, acquire new customers, move customers up-segment, win-back
defected & churned customers, increase Customer Lifetime Value, build relationships,
create brand advocates, adjust pricing levels, responding to competitive challenges, select
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stock lines effectively, plan merchandising more intelligently, reduce promotional and
advertising costs and selecting new trading sites.
II.6 Operationalization of Variables
Y = f (X);
X = X
1,
X
2,
X
3
; Y = α+β
1
X
1
+ β
2
X
2
+β
3
X
3
+e
Where:
Y = Customer Loyalty (CL)
α = Autonomous factors
X = Internet Marketing (IM)
X
1
= Social Media Marketing (SMM)
X
2
= E-mail Marketing (EM)
X
3
= Search Engine Marketing (SEM)
βi = Beta coefficients of the independent variables Xi
e= Error term, which represent other uncaptured variables influencing Customer
Loyalty outside the three captured by this work.
Figure 1- Conceptual Model of Internet Marketing and customer Loyalty
Independent Variable Dependent Variable
Internet Marketing
Source:developed by the Researchers (2018)
II.7 Social Media Marketing and Customer Loyalty
Facebook and twitter are the two social media platforms used mainly for
interaction and communication. Facebook has quite a huge number of users who are
potentially a market for any organization’s products or services. For this reason, marketers
are turning to Facebook more and more each day while trying to establish other better
Social Media Marketing
Email Marketing
Search Engine Marketing
Customer Loyalty
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approaches to communicate with their target market (Duck, 1991). Some of the ways that
they are using to reach clients includes; providing offers for potential consumers on Face
book (Cowles, 1997). Social media communities like Facebook, Twitter and Whatsapp
host considerable number of users, majority of who are youth. This explains why
organizations offering youth friendly products keep targeting them by using the platform
not only in reaching out to them but also ensuring they are kept in the net of repetitive
buyers of their products. Amongst the youth today, social media is becoming a religion as
many of them turn to their cell phones first in the morning even before praying to God to
interact with the social media. However, some adults perceive the social media as a no-go
area perhaps for some unpalatable scenes that fly on them. Such segment of the market
should be targeted through other channels if they must be loyal if they must keep abreast
of an organization’s continuous products enhancement features and remain loyal.
II.8 E-Mail Marketing and Customer Loyalty
Email marketing is meant to build loyalty, trust or brand awareness (Conway &
Swift, 2000). Same time, commitment trust theory provides that trust and confidence are
the key pillars of building a strong foundation with customers. This increases chances for
consistent sales which eventually lead to customer retention. This therefore shows that
any organization that hopes to succeed in customer retention should build confidence and
trust in the products and services offered to win the hearts of customers and retain them.
Doherty & Hart (2002) posit that organizations send email messages with the objective of
enhancing the relationship with their customers to encourage loyalty and repeat business.
E-mail marketing is primarily a way to enhance a long lasting relationship between the
customers and the organization. To start this process, customers are required to sign up for
an E-mail publication so that they can be repeatedly reminded about their product or
service in order to attract repeat business.
Email marketing provides information in the form of emails to prospective
customers who subscribe to their emails. Existing customers also learn about the new
products and services. This keeps them up-dated about the products and services offered
and this influences their purchase decision. Customers prefer to buy products that they
have information about since they are well informed about the products. This influences
constant buying and customer loyalty. While commitment trust theory maintains that trust
and confidence are the key pillars for a successful relationship, this practice provides
information that is important in helping customers to make purchase decisions (Buttle,
1996).
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II.9 Search Engine Marketing and Customer Loyalty
Metaphorically, search engine marketing can be thought of as the “Hubble
Telescope of the Internet” in that they enable customers to gain access to billions of web
pages that comprise the online shopping (Xiang et al., 2009). Search engines take user
queries, retrieve related documents found in the searchable indexes created by the indexer,
produce snippets with web address, a short description, similar pages, and cache, and
display them in a ranked order on the SERP. The major part of search engine interface is
used to display those results based on the internal ranking, which is termed Organic
Listing. In addition, major search engines, such as Google, display paid advertisements on
the top and right side of major result pages, ranked by businesses’ bidding price on clicks
and the quality of pages, which is termed Paid Listing. The paid listings could also appear
blended with organic listings for certain search engines, such as Baidu.com (the most
popular search engine in mainland China) and Yahoo.com. However, the two companies
separated the two types of results recently under pressure from the general public and the
users (Back, 2009). Ability to read and write affect customers access to online marketing
with search engine marketing being the most affected.
Therefore, based on the foregoing online marketing is gaining more popularity in
Nigeria as it proves to be more far-reaching. Orthodx marketing which relies mainly on
traditional methodology and media like TV, Radio Set, Billboards, and Newspapers are
being challenged by many factors such as epileptic power supply in Nigeria, longer hours
outside home, high cost of alternative power, high cost of TV and Radio adverts have
reduced the use of traditional media gadgets in accessing marketing offers by companies.
A considerable number of Nigerians go about with their smart phones from where they
access the internet and online marketing offerings by companies. Therefore, it is smarter
for companies and their marketing teams to keep targeting customers where they stay for
most of their times which are online platforms.
III. Theoretical Framework
The theoretical foundation of this study is based on the Uses and Gratification
Theory (UGT), developed by Katz and Blumler (1974). This theory is primarily used on
conventional media as an endeavour to analyse consumers’ behaviour. However, with the
advent of the Internet and new platforms of interactions including emails, instant
messaging, blogging, skyping, Whatsapping and various other forms of communication,
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the same theory has also been significantly applied on social media studies (e.g., Ngai,
Taoa, & Moon, 2015).
In the context of this study, the application of the UGT is based on the assumption
that the consumer is an active and self-conscious contributor in media choice; the
consumer is also driven by personal goals rather than the influence of the media. This
theory thus assumes the position that the consumers’ will seek out the media that fulfils
their needs and so their gratification. Consequently, it is the consumer’s gratification that
would lead to the recurring media use. Thus, the media choice of the consumer is
considered to be objective-oriented and value focused (Dahl, 2014).
The application of the Uses and Gratification Theory (UGT) has been considered
by various social media studies primarily, for exploring the uses and motives behind
social media platform usage (Dunne & Lawlor, 2010; Lee & Ma, 2012; Bolton et al.,
2013; Khan, 2016; Wang et al., 2016), for identifying the factors that drive social network
platform consumers’ engagement (Oliveira et al., 2016), for developing models and
hypotheses which investigate the stimulation of positive engagement behaviour.
IV. Methodology
This study used survey research design. Survey is used because is important in
obtaining information from the population about their opinion, attitude and behaviour
towards a subject. Since the major source of primary data for the study were the views of
the members of the public its adoption was imperative. According to Ohaja (2003)
“survey is a study of the characteristics of a sample through questioning that enable the
researcher to make generalization concerning his population of interest.”Consequently,
since the study focused on human behaviour and cognition, thus making the survey
research design more appropriate.
The population for this study comprised the entire customers (both current and
potential customers) of jumia.com who were residents in the 20 local government of Ogun
State. In order to arrive at a sample, convenience sampling technique (non-probability
sampling) was used for this study. This type of sampling method was used because it
gathers information from members of the population who are conveniently available to
provide information and 180 respondents spanning across the three senatorial districts
from whom the primary data were elicited. Data was collected through personal
administration of 180 copies of questionnaire to the respondents. However, 120 copies
were recovered hence data analyse through the use of logistic regression model under the
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Social Statistics Package for Social Sciences (SPSS 20) and the analyses were based on
the 120 copies of questionnaire that were recovered.
V. Results and Discussion
The focus of this research centered around two major constructs:
the internet marketing practices of Jumia.com, Nigeria; and
customer loyalty as a result of their internet marketing practices.
The results are therefore presented and discussed along the two main themes.
Hypotheses:
H
01
: Social Media Marketing has no significant impact on customer loyalty.
H
02
: E-mail Marketing has no significant impact on customer loyalty.
H
03
: Search engine marketing has no significant impact on customer loyalty.
Table 1- Omnibus Tests of Model Coefficients
Df
Sig.
Step 1
Step
3
.022
Block
3
.022
Model
3
.022
The omnibus table in Table 1 tests the model coefficients used in the analysis
(with the explanatory variable). The result is significant with p-values less than 0.05. This
suggests that the new model is explaining more variance in the outcome and is an
improvement. Here the chi-square value is significant (chi-square = 6.692, df=3, p=0.000)
so our new model is significantly better.
The model summary table (Table 2) shows the nagelkerke R square value of
0.672, which is equivalent to normal R-square value. The result suggests that the model
explains roughly 67.2% variation in the outcome
Table 2- Model Summary
Step
-2 Log
likelihood
Cox & Snell R
Square
Nagelkerke R Square
1
159.363
a
.654
.672
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Moreover, the hosmer and lemeshow test in table 3 shows the p-value of 0.636
which is greater than 0.05. The result suggests a good fit to the model.
Table 3- Hosmer and Lemeshow Test
Step
Chi-square
Df
Sig.
1
6.101
8
.636
From the classification table (Table 4) below, the table shows that our
model is now correctly classifying the outcome for 61.7% of the cases.
Table 4- Classification Table
a
Observed
Predicted
Do You Prefer Your Brand?
Percentag
e Correct
Yes
No
Step
1
Do You Prefer Your
Brand?
YES
31
26
54.4
NO
20
43
68.3
Overall Percentage
61.7
Table 5, provides the regression coefficient (B), the wald statistic (to test the
statistical significance) and the odds ratio (Exp (B)) for each variables category. Looking
at the three variables under consideration, the search engine, social media and e-mail
marketing, the Exp (B) column (the odd ratio) tells us that customers that used search
engine are 0.694 times likely to prefer their brands, in addition, those that used social
media are 0.899 times likely to prefer their brands and those with e-mail marketing are
0.902 times likely to prefer their brands. All these three independent variables are
significant.
Table 5- Variables in the Equations
B
S.E.
Wald
df
Sig.
Exp(B)
Step
1
a
Searchengine
-.365
.182
4.033
1
.045
.694
Socialmedia
-.107
.136
.619
1
.032
.899
Emailmarketing
-.103
.077
1.755
1
.018
.902
Constant
6.599
3.079
4.592
1
.032
734.370
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VI. Conclusion and Recommendations
VI.1 Conclusion
The essence of this research is to establish the effect of internet marketing on
customer loyalty. It focuses on the internet activities such as the social media marketing,
email marketing and search engine marketing and how these variables affect customer
loyalty. It is a known fact that internet is an essential tool for any organization that seeks
to attract new customers and also to maintain the existing ones, as it enhances flexibility
and easy business transaction between the organization and its customers. From the result
of this study, it was concluded that there is a significant relationship between internet
marketing and customer loyalty. Therefore, the respondents reveal that they like to be
approached through social media site because it is easy for them to share their opinion
about how they feel about company’s products, they also revealed that they love the
jumia.com page on their social media site and finally that receiving update from
jumia.com makes them more loyal to the company. Results on email marketing revealed
that the respondents agreed that email about new products are always useful, which makes
them interact with the staff to place orders or lodge complaints through email. Finally on
search engine marketing, result confirms that the use of search engine marketing makes it
easy to get information about the company’s products and ease of access to product
information through search engine such as Google enhances their patronage of jumia
products. Therefore the study concluded that the internet marketing is an essential tool in
bonding customers and making them more loyal.
VI.2 Recommendations
Based on the findings of this research work, the study recommends the following:
Organizations should keep targeting their customers through the various online
marketing channels such as social media platforms to complement the traditional
marketing channels which are more expensive.
From the result of the research, it was revealed that customers enjoy receiving
update about the product through their email addresses; the organization should
build a database of customers’ email addresses in order to send personalized
message about the company and its products to the customers. It is a cheaper
method of reaching a large number of customers across the globe with an
opportunity to have feedbacks from them.
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Companies marketing their products online should rely on visual and verbal
marketing initiatives to attract and to engage online surfers.
It has been revealed that social media have a very high retentive rate for adverts
uploaded on Facebook, twitter, instangrams compared to the volatility of TV and
Radio. After five years or more, online customers are still commenting and asking
questions on uploaded ads meanwhile, a paid TV adverts missed by large
numbers of target customers may no longer be accessed again unless it is paid for
again and again. Therefore, organizations should not undermine such online
marketing activities.
Organizations exploring online marketing channels should not perceive such
channels as substitutes to the traditional marketing channels but rather as
complementing each other as the situation in Nigeria demands.
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