PSYC327 - Online shopping and digital marketing

what is consumer behaviour?

the decision-making process involving selecting, purchasing, using, and disposing of a product, service, idea, or experience.

what is digital marketing?

the practice of promoting products and services using digital distribution channels via computers, smartphones, or other digital devices.

what is online shopping?

the process of buying goods or services directly from a seller over the internet using a web browser or mobile app.

what is digital engagement?

monitor tools providing quantitative metrics, such as the number of likes, shares, comments, opens, views, followers, or clicks, as indicators of the level of engagement or valence of engagement (positive or negative comments).

what is the largest digital advertising market in Europle?

UK, digital advertising spending in the UK reached an all-time high of 36 billion British pounds in 2024, which was three times the amount reported in 2017

what are 4 ways of digital marketing?

-company website

-social media

-celebrities

-social media influencers

what impacts website design?

-navigation experience (easy to use)

-appearance and structure

-build trust (guides users)

why is brand website design important?

impacts consumers' preferences for using the site to purchase products online. For example, if a consumer perceives the website to be convenient, this positively

impacts their purchasing behaviour

what are examples of digital marketing techniques?

-content marketing

-social media marketing

-email marketing

-video production

what is SEM and SEO?

SEM = (search engine marketing) Paid advertising on search engines like Google

SEO = (search engine optimisation) enhancing website visibility in search results

what is in-app advertisements?

advertisements appear within an application on a mobile device, incorporates interface capabilities such as swiping. aims to be personal and be delivered in a more precise, engaged, and uninterrupted

why shouldnt social media be treated as an umbrella concept?

Each platform provides a unique set of experience dimensions, which is related to how positively (or negatively) advertisements are evaluated

how does profile based social media differ in providing customised and broadcasted messages? Voorveld et al. 2018

-customised through a relationship as users are connecting and communicating e.g. facebook

-broadcasted through self-media which is when users update following e.g. twitter

how does content based social media differ in providing customised and broadcasted messages? Voorveld et al. 2018

-customised through collobaration when users find answers, advice e.g. reddit

-broadcasted through creative outlets sharing hobbies e.g. instagram

what is a social media influencer?

de Veirman et al (2017) "individual who has built a sizeable social network of people following them and is often a trusted. They have the power to affect purchasing decisions because of their position or relationship with their audience

how are celebrities used in marketing?

mainly endorse products due to their public and professional recognition. also wishful identification when consumers desire to be like the celebrity through attributes

what is a virtual influencer?

digital entities with their own identities generated by computers, typically humanlike in appearance and mimic human behaviours. Not yet autonomous and need to be controlled by humans or computer algorithms. e.g. Shudu African influencer or Imma Japanese.

what are advantages and disadvantages of virtual influencers?

-Cost-effective and time-saving, not constrained by physical factors (i.e., energy levels or overtime legislation). They can "travel" anywhere and show up at any place or event. Less likely to be involved in personal scandals

-audiences view as out-group members and dehumanised objects

what is customer profiling and the 3 types?

•Profile description based on consumers' online activity

1. basic communicators

2. lurking shoppers

3. social thrivers

(Kirwan et al, 2024)

what are basic communicaters?

•highly educated users from a variety of income brackets, use the internet forums less frequently and mainly communicate via email

what are lurking shoppers?

•have the highest income, are frequently online navigating for information, are heavy online shoppers and are more likely to visit news, portals or search sites.

what are social thrivers?

•more likely to be female, have the lowest education and income of all the groups, and are also the youngest): have the heaviest intensity of Internet use and exploit the social features to engage in chat, blogging, streaming and downloading.

what is motivation for online shopping?

convenience (most frequent), variety, balanced, store-oriented. explains customer choice for shopping online rather than in person.

what are 4 online shopping factors?

-access/availability (unlimited shopping)

-disinhibition (no moral judgements)

-boundaries (endless options and offers)

-reward/ reinforcement

what are consumer personality traits (age, gender)?

Alan et al (2017) young generation and males online shop more. personality traits include high neuroticism (overcome negative emotions) openness (confidence in online shopping) and extraversion (more opportunities)

what did Alan et al (2017) find about preference in shopping for narcissists and low-self esteem?

give importance to luxury products and high-class store design because both affect their image and feel special

what did research find about what products people with low self-esteem prefer?

Stuppy et al (2010) gravitate toward inferior products due to the motivation to self-verify.

prefer inferior products only when those products signalled pessimistic self-views. these products can change their behaviour if they are induced to view themselves as consumers of superior products, but continue to read and leave negative feedback.

what is self-verification?

Consumers use products to feel good about themselves enhancing their self-esteem and this is a way to confirm their self-views

what are 4 ways technology is used for persuasion?

-Increasing self-efficacy

-tailoring information

-triggering decisions

-guiding through the buying process.

what is word of mouth?

refers to informal communication between consumers about the products, services, or brands—often based on personal experience and typically occurring outside of commercial influence. negative reviews are perceived as more credible and influential.

what is consumer conformity?

buying behaviour due to motivation from obtaining information due to social influence. can be normative which is to fit in with the social group or informational if believe they are more accurate

what are characteristics of the virtual consumer community?

-accessibility

-types

-anonymity

-conformity (normative and influential)

what did research find about consumer conformity in virtual communities?

Park & Feinberg (2010), over 100 participants in a virtual community and those who were not. found normative consumer conformity internal characteristics where as informational was external virtual community. implications brands could help product-involved consumers share the information they want and increase the likelihood of purchase, and brand loyalty

what is the theory of planned behaviour?

Cheung & To (2017) The intention of spending time and seeking more opportunities to watch in-app advertisements, of learning more about the products/services, discussing these with friends, and deciding to purchase the products/services. perceived behaviour control

what impacts likelihood of watching in-app advertisements?

positive attitudes towards them, strong subjective norm and low perceived behavioural control

what did research find about influencer vs brand-promoted ads?

Lou et al (2019) Influencer-promoted ads had higher engagement than brand-promoted ads.

Consumers expressed a higher negative sentiment in their comments on brand-promoted ads possibly due to skipping them or ad-blocking. whereas influencers more subtle

how is social media content displayed appealingly?

prestige and high quality, expertise as showcases knowledge, information and interactive services

what are the 4 stages of the influence framework?

1. influence attempts using resources

2. target attitudes to the influence exercised through satisfaction and trust

3. targets desire to comply

4. targets behavioural outcome intention to buy

what does credibility consist of?

-expertise (valid arguments and knowledgeable)

-trustworthiness (trust the intentions of the sender)

what is the 3 stage model of social media influence and credibility?

(Helme-Guizon & Magoni, 2019)

1. cognitive - people aware of product through social media

2. affective - attach emotional connection through their opinions

3. behavioural - increase interactions with brand loyalty and conciousness

what is the original 3 stage model?

Laridge & Steiner (1961) of digital influence. same cognitive, affective and behavioural

how do virtual influencers follow the 3 stage model?

Kim & Baek (2023)

- cognitive through person-digital interaction

- affective through the feeling of similarity and interests

- behavioural towards virtual influencer

how much is paid for social media influence?

in 2017 UK Facebook paid £75,000 for celebrity influencer post compared to £1500 for a micro influencer (based on following) Schouten et al (2019)

what is an opinion leader?

due to their popularity, originality, uniqueness and their ability to influence the attitudes and behaviours of their audience.

what is the influence of opinion leadership?

Ki & Kim (2019), can be local or global depending on scope to international community, destructive or positive if use control techniques instead of persuasion, and long term or short term depending on trust and confidence

what are the 3 elements of destructive leadership?

-destructive leaders (charismatic but unethical; often authoritarian, narcissistic, or abusive),

0susceptible followers (can be either conformers — passive, dependent — or colluders —ambitious, opportunistic),

-conducive environments (contexts that enable toxicity—e.g., instability, lack of oversight, or cultural norms that reward aggression).