The effects of online marketing communications and sales promotion types on online television sales

Abstract

Over the last decades, many consumer segments have started to shop online, and as a consequence online shopping has become an affluent area of research. The proportion of online shopping in overall retail purchases increases year by year dramatically, and especially after the pandemic, it has had a peak. With the increasing demand for e-commerce, sales promotion campaigns have become appealing to consumers. Drawing upon these trends, the impact of these digital/online marketing communications strategies and the effects of marketing investment on online television sales are analyzed in this thesis. A literature review was conducted on the effects of sales promotion campaigns and marketing communications on customers' online shopping decisions for various television segments. For years, numerous marketing communication strategies have been developed for online shopping. The purpose of this study is to identify the digital marketing strategies, their effects on consumers' purchasing patterns, the difficulties and convenience encountered during the process, and the acquisition on a company/customer basis. In addition, this study aims to investigate into how sales promotion campaigns and digital marketing communications shape online television sales. During the research, data was collected using a quantitative method. The screen size of the televisions that were sold was used to classify it. Consequently, in this thesis, televisions are divided into three categories: small, medium, and large television segments. For these three different television segments, past data on online television sales from April 2020 to April 2021 was examined on a daily basis for one year. This thesis contains a total of 379 daily observations. In order to measure the effects of sales promotion campaigns and digital marketing investments on online television sales, the Polynomial Distributed Lag model was used in this thesis. It was anticipated to reduce multicollinearity issues by using the PDL method. Online campaigns and marketing investments' immediate impact might be reduced in the future. To observe these effects, the PDL method was used. Dataset is run in IBM SPSS Statistics software. The analysis acknowledges significant correlations between digital marketing investment and online television sales for all three television segments. The findings in this thesis demonstrate that marketing expenditure positively impacts online television sales. The maximum influence was seen at medium-size television sales. Meanwhile, sales of large-screen TVs had the most negligible impact among those three different television categories. The effects of sales promotion campaigns and online marketing communications on e-commerce television sales data over a one-year period have been examined in this thesis. However, one of the studies' limitations is that offline television sales were not taken into account. Therefore, these effects on offline television sales can be acknowledged for future investigation areas. Another limitation is that these impacts are only measured in terms of television sales, with no consideration given to sales in other categories. Accordingly, long-term effects of these marketing activities should be investigated in future studies, in addition to offline television sales. Finally, the study did not consider pandemic effects. Therefore, pandemic effects can be studied in future research.