Abstract

This study titled Digital Marketing and consumer loyalty in Supermarkets in Douala, observed problems with marketing channels and customer loyalty having seen a shift that has impacted the consumer’s decisions making process when it comes to their loyalty.

Customers’ engagement with brands has changed, hence, organizations need to adapt to digital marketing strategies to attain the loyalty of their customers. The objectives of the study are to examine the relationship of online marketing (Digital Marketing) and customers’ loyalty in Supermarkets in Douala, and Specifically; to determine the relationship between social media and customer’s loyalty in Douala Supermarkets, to examine the relationship between E-mail Service and customer loyalty in Douala Supermarkets, to ascertain the relationship between E-Advertisement and customer loyalty in Douala Supermarkets and finally to determine the relationship between blogging (web log) and customer loyalty in Cameroon Supermarkets.

The research made use of descriptive survey research with data being collected by means of questionnaires and analyzed with the statistical package for social sciences. Results from the findings indicated in the regression analysis showed that all the null hypotheses were rejected implying that the sample data provided enough statistical evidence that the claims held by those null hypotheses stated were false.

As a Recommendation, supermarkets should recruit expertise in information Communication Technology Management (ICTM) that can be able to monitor and service the website used in communicating to customers in terms of frequent updating with the use of Really Simple Syndication (RSS) so that customers can be current about the company update.

CHAPTER ONE

INTRODUCTION

1.1. Background Of The Study

Online Marketing (Digital Marketing) is a valued business medium for companies in terms of disseminating information and retaining customers. It is considered as a key strategy base on the dynamism and complexity of the environment business found itself to build brand and customers loyalty effectively.

Undeniably, the online which is also referred to as the “Internet” has changed the world we live in. Even before the Internet (online) there were many different ways to advertise, in different media such as radio, TV, newspapers, magazines, as well as via telemarketing or pamphlets. Usually, the goal was to get a company- and/or product name, a statement, etc. communicated to as many people as possible for the smallest price possible.

The Internet has led to an increasingly connected environment, and the growth of Internet usage has resulted in the declining distribution of traditional media: television, radio, newspapers, and magazines. Marketing in this connected environment and using that connectivity to market is e-Marketing (Webster & Frederick, 2002).

Due to the technologies available today, as well as broadband implementations in most homes, advertisers are able to make massive leaps and create global campaigns (become globalized in just a few minutes). Leaps that will be more obvious as a new generation of professionals take control.

The internet, eBay, Amazon, Google, and YouTube are always there for people and they play pertinent roles in forming worldviews through online marketing, just as television, film, radio, and print did for prior.” (Rappaport. 2007)

Online Marketing (or Electronic-Marketing) can be viewed as a new philosophy and a modern business practice involved with the marketing of goods, services, information and ideas via the Internet and other electronic means.

By reviewing the relevant literature, it is noticed that definitions of electronic marketing (E-Marketing) vary according to each author’s point of view, background and specialization. For that, while Smith and Chaffey define it as: “Achieving marketing objectives through applying digital technologies” (Smith and Chaffey, 2005), Strauss and Frost define 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” (Strauss and Frost, 2001).

Online marketing is relatively inexpensive when compared to the ratio of cost against the reach of the target audience. Companies can reach a wide audience for a small fraction of traditional advertising budgets. The nature of the medium allows consumers to research and purchase products and services at their own convenience. Therefore, businesses have the advantage of appealing to consumers in a medium that can bring results quickly. The strategy and overall effectiveness of marketing campaigns depend on business goals and cost-volume-profit (CVP) analysis.

Online marketing as of 2007 is growing faster than other types of media. Because exposure, response, and overall efficiency of Internet media are easier to track than traditional offline media. Through the use of web analytics, for instance, Internet (online) marketing can offer a greater sense of accountability for advertisers. Marketers and their customers are becoming aware of the need to measure the collaborative effects of marketing (i.e., how the Internet affects in-store sales) rather than soloing each advertising medium. The effects of multichannel marketing can be difficult to determine but are an important part of ascertaining the value of media campaigns.

With the advent of new technologies and better internet facilities, the nature of business transaction in the supermarket sector has been transform tremendously. According to a staff in the supermarkets, he confirmed that with the more increasing awareness and attention paid to new internet facilities, customers are constantly shifting from the usual method of transaction with the supermarkets into the modern internet facilities.

According to him, the traditional method of transacting with customers and communicating with them has become ineffective, as the customers now seek new ways to do business with the supermarkets and be communicated to.

By this, it can be said that with the advent of internet facilities, especially in the area of online marketing, the supermarket business environment has been greatly affected. Any supermarkets within the supermarket industry that could not meet up with the changing trend in internet technology would be doom to losing its customer

According to Kuttner (1998), “The Internet is a nearly perfect market because the information is instantaneous and buyers can compare the offerings of sellers worldwide. The result is fierce price competition and vanishing brand loyalty.” Given the reduction in information asymmetries between sellers and buyers, there is a growing interest in understanding the bases of customer loyalty in online environments.

From a seller’s perspective, customer loyalty has been recognized as a key path to profitability. The high cost of acquiring customers renders many customer relationships unprofitable during early transactions (Reichheld & Sasser, 1990). Only during later transactions, when the cost of serving loyal customers falls, do relationships generate profits.

With millions of websites clamoring for attention, e-retailers have a tenuous hold at best on a large number of “eyeballs.” In order to reap the benefits of a loyal customer base, e retailers need to develop a thorough understanding of the antecedents of e-loyalty, that is, customer loyalty to a business that sells online. Such an understanding can help e-retailers gain a competitive advantage by devising strategies to increase e-loyalty.

As identified by the researchers that customer loyalty as a construct is comprised of both customers’ attitudes and behaviors. Customers’ attitudinal component represents notions like repurchase intention or purchasing additional products or services from the same company, the willingness of recommending the company to others, demonstration of such commitment to the company by exhibiting resistance to switching to another competitor (Cronin & Taylor,1992; Narayandas, 1996; Prus & Brandt, 1995), and willingness to pay a price premium (Zeithaml, Berry, & Parasuraman,1996).

On the other hand, the behavioral aspect of customer loyalty represents- actual repeat purchase of products or services that includes purchasing more and different products or services from the same company, recommending the company to others, and reflecting a long-term choice probability for the brand (Feick, Lee, & Lee, 2001).

It can be concluded that customer loyalty expresses an intended behavior related to the product or service or to the company. Pearson (1996) has defined customer loyalty as the mindset of the customers who hold favorable attitudes toward a company, commit to repurchase the company’s product/service, and recommend the product/service to others.

Various researchers have examined many different factors involving the construct of online marketing such as social media, e-mail marketing, and online advertisement. In other words, most of the research study in Cameroon relating to online marketing activities on customer loyalty has Been So Limited.

1.2. Statement Of The Problem

As part of my final year project, I have attracted to the concern the relationship of digital marketing and customer’s loyalty in supermarkets in Cameroon. Due to the recent trends in technological advancement, marketing channels and customer loyalty have seen a shift that has impacted the consumer’s decisions making process when it comes to their loyalty.

Customers’ engagement with brands has changed, organizations need to adapt to digital marketing strategies to attain the loyalty of their customers. These will be unveiled as the chapters go by.

1.3 Research Questions

1.3.1 Main Research Question

What is the relationship between online marketing (Digital Marketing) and customers’ loyalty in Supermarkets in Cameroon?

1.3.2 Specific Research Questions

1. What is the relationship between social media and customers’ loyalty?
2. What is the relationship between e-mail Service and customers’ loyalty?
3. Does E-advertising have any relationship with customers’ loyalty?
4. What is the relationship between blogging (web log) and customer loyalty?