Exploring the Impact of Digital Marketing on Retail Stores in Chennai: A Quantitative and Qualitative Study of Consumer Behaviour and Store Strategies

Abstract

Purpose

The aim of this research is to analyze the influence of digital marketing on consumer behaviour and Retail strategies in Chennai. It aims to demonstrate the impact that digital marketing tools have on purchasing decision and how it lead the strategic responses adopted by the retails. With the burgeoning significance of digital marketing on retail performance, regional analysis of online marketing effort is essential.

Design/Methodology/Approach

The research is designed as mixed method research utilising quantitative and qualitative methods. The contribution quantifies the level of influence by some specific digital marketing factors of social media, online reviews and search engine advertising on the consumer purchasing behaviour through regression analysis. Trend analysis helps to understand the significant factors of digital marketing strategies adopted by retailers in Chennai.

Findings

Results suggest that digital marketing has a significant impact on consumer purchasing behaviour particularly social media marketing and online reviews were seen the most influential factors. Meanwhile, struggling merchants have moved to adopt omnichannel and tailor their marketing to a blend of in-store and online experiences. Yet, there are several challenges: digital literacy discrepancies, privacy issues, and a digital divide—those in the semi-urban and rural parts of Chennai don't have stable internet."

Originality/Value

This research is an attempt to add to the extant literature on the digital marketing amongst the retail industry by paying a special attention to the local factors in Chennai. It provides useful implications for retailers to foster consumers’ engagement in the digital age and the value of designing targeted strategies due to various regional markets. The paper also draws attention to the importance of more research revealing the obstacles in the way of the smaller retailer in their uptake of digital marketing strategies