THE EFFECT OF DIGITAL MARKETING AND PSYCHOLOGICAL FACTORS ON CONSUMER DECISION-MAKING: A STUDY OF PUNJAB AND HARYANA

Abstract

Background: The existing studies in digital marketing have been conducted in the developed markets except a few which have been conducted in the emerging markets. Hence, the present study is an attempt to fill this research gap. Purpose: Digital marketing is the avenue of electronic communication that is used to endorse goods and services in the marketplace. Nowadays companies are using digital marketing channels to publicize information about their brands and have a momentous impact on customers' preferences and purchase intentions. The main purpose of this paper is to scrutinize the impact of digital marketing channels and behavioral elements on purchase lead and product inclination. Design/methodology/approach: A questionnaire-based survey was conducted in Punjab and Haryana to gauge consumers' responses to find out the impact of digital marketing channels and behavioral factors on purchase intentions and product preferences. Partial Least Square-structural equation modeling (PLS-SEM) is adapted to interpret the link between different indicators. Further, importance-performance map analysis (IPMA) has been employed to assess the significant and effective dimensions of digital marketing channels. Findings: The results assert that digital marketing tools and psychological factors have a remarkable impact on consumer purchase intention and hence purchase decisions. IPMA concluded that the behavioral factor has the highest performance, and the usability of digital marketing channels has the lowest. Conclusion: The obtained results conclude that purchase intentions and product preferences can be created and reinforced using digital marketing channels. Contribution: Companies with online presence should beautify their digital marketing channels to improve sales. The findings provide valuable insights for policymakers. Originality: Most of the studies existing in this area have been conducted in the developed markets except a few which have been conducted in emerging markets. Hence, this present study is an attempt to fill this research gap.

JEL Classification: M30, M37, D90, D91.