EFFECT OF ELECTRONIC MARKETING ON CUSTOMERS TURNOVER AND CONSUMPTION AMONG SMES

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EFFECT OF ELECTRONIC MARKETING ON CUSTOMERS TURNOVER AND CONSUMPTION AMONG SMES

 

INTRODUCTION

Electronic Marketing is the use of information and applications that are used for planning and implementing the concepts, distribution, promotion and pricing of goods and services, and can lead to transactions that will fund, individual and organizational goals. In another perspective, electronic marketing, which is formed when, technical infrastructure (data bases, proper terminals, servers, software) must be provided, and customer relationship using these technologies. E-marketing uses technology as a logical addition to the traditional marketing techniques (Henry, Gilmore, and Gallagher 2007).

Most firms have in progress developing e-marketing strategies for the web (Sheth and Sharma, 2005). The scope that customers adapt to the e-marketing services is directly associated to the website design and on the fact that how comprehensiveness of the website (Doherty and Chadwick, 2009). Culture is playing a role in global e-marketing as people adapt to new environment things (Krishnamurthy and Singh, 2005).

Electronic Marketing is viewed as a new business practice that is apprehensive with the promotion of goods, services, information and ideas through the Internet and other electronic medium (El Gohary, 2010). E-marketing is part of e-commerce as it is defined as the buying and selling online, giving virtual place, store fronts, digital value creation and various distribution channels intermediaries (Strauss and Frost, 2001).

E-marketing is becoming the need of this advanced society so companies are keenly looking towards it and they are anxious to adopt this trending method. It can help those building

 

strong interaction with their customers thus making them more loyal to brands and maintaining the increased market share (Khan et al, 2012). The customer’s satisfaction is continuously changing in the e-retailing industry i.e. firstly, they are concerned with the convenience shopping and then price perception that leads to after sales services (Jiang and Rosenbloom, 2005). Van den Poel and Leunis (1999) studied the capabilities of the World Wide Web as a new type of non-store vending in which the Internet is a direct link between the consumer and the retailer or producer, by passing the traditional store. Retail channel functions performed by the www were categorized as follows:

  1. Non-store information channel;

 

  1. Non-store reservation channel with a traditional mail or courier service delivery and

 

  1. Non-store purchasing and physical delivery

 

National (Key) account relationship management is typically used in large organizations to keep a close tie with large volume and/or important customers.

Oliver (1997) points out that everybody is not technology thrilled. Some customers do not mind paying a premium to keep the person-to-person contact when shopping (sales people, clerks, and cashiers). Oliver (1997) also suggests that electronic shopping might be context- dependent. The electronic experience is favored at diverse times for different products.

His context-dependent model for purchasing goods and services conceptualizes three levels of commerce. The first level is known as the “Market place,” where personal interaction, ritual and sense of community predominate. Theater, exercise, street markets, special clothes and dining out are in this category.