Research paper on online shopping

Topics: Brand, Brand management, Branding Pages: 16 (4333 words) Published: April 16, 2014

Customer Engagement and its effects on building brand for Online Company Research paper

K.J. Somaiya Institute of Management Studies and Research
Prerana Majmudar

Although commercial internet has been over a decade, and a vast amount of practitioner and scholarly literature on internet marketing activities of firms has accumulated, relatively little empirical work has been undertaken on the branding strategies of internet companies. The emergence of brand management in India has seen a very high progress in the last two decades. Every company wants to differentiate itself from its competitors and build its own brand image. The online industry of India is a $14 billion industry (2012) and has huge potential to grow in the future. Thus it becomes very essential for the company to differentiate itself from the others with the best usps to create and become the best brand. Some online brands like myntra, flipkart, bluestone etc have various customer engaging activities which lead to build its brand and create an impact on the customers mind. Objective of study:

To understand the online apparel industry in India
To analyze how a brand is built for an online apparel company To evaluate various customer engagement activities conducted by these companies To find out if there is an effect of customer engagement in brand building of these companies To study the attributes/factors of customer engagement that lead to brand building for these companies

Literature Review:
Customer Engagement: Concept
In March 2006, the Advertising Research Foundation announced the first definition of customer engagement the first definition of CE at the rethink! 52nd Annual ARF Convention and Expo: Definition:

"Engagement is turning on a prospect to a brand idea enhanced by the surrounding context." Customer engagement can also refer to the stages consumers travel through as they interact with a particular brand. This customer engagement cycle, or customer journey, has been described using a myriad of terms but most often consists of five different stages: awareness, consideration, inquiry, purchase and retention. Marketers employ connection strategy to speak to would-be customers at each stage, with media that addresses their particular needs and interests. When conducting search engine marketing and search engine optimization, or placing advertisements; marketers must devise media and/or keywords and phrases that encourage customer flow through the customer engagement cycle, towards purchase. (AAAA & ARF Customer Engagement Conference, 2006) Because the various definitions often focus on entirely different aspects of CE, they are not in every case competing definitions but, rather, illuminate CE from different perspectives.  Eric Peterson's definition for example frames CE as a metric: "Engagement is an estimate of the degree and depth of visitor interaction against a clearly defined set of goals."

Customer Engagement and Marketing
CE-marketing is necessitated by a combination of social, technological and market developments: 1. Businesses are losing the power to dictate the communications agenda: The effectiveness of the traditional 'interrupt and repeat' model of advertising is decreasing. In August 2006, McKinsey & Co published a report which said that by 2010 traditional TV advertising will only be one-third as effective as it was in 1990. 2. Decreasing brand loyalty: The lowering of entry barriers (such as the need for a sales force, access to channels and physical assets) and the geographical widening of the market due to the internet have brought about increasing competition. In combination with lower switching costs, easier access to information about products and suppliers and increased choice customer loyalty is hard to achieve. The increasing ineffectiveness of TV advertising due to the shift of consumer attention to the internet, the ability, within new media,...

References: AAAA & ARF’s Consumer Engagement Conference, 2006
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Chaffey, D., Mayer, R., Johnston, K. and Ellis-Chadwick, F. (2003) ‘Internet Marketing: Strategy, Implementation and Practice’, 2nd edition, Prentice Hall, London, UK.
Chiagouris, L. and Wansley, B. (2000) ‘Branding on the internet’, Marketing Management, Vol. 9, No. 2, pp. 34–38
Customer Engagement Strategies, Four stages of Customer Interaction
Dayal, S., Landesberg, H. and Zeisser, M. (2001) ‘Building digital brands’, The McKinsey Quarterly, No. 2, accessed July 2001,
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Eisingerich, Andreas B.; Bell, Simon J. (October 2008). "Customer Education Increases Trust: Service Companies Shouldn 't Worry About Teaching Their Customers Too Much". MIT Sloan Management Review 50: Pages 10–11.
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Mark Ghuneim, Terms of Engagement Measuring the Active Consumer, Mar 26, 2008.
Marketers Mulling ARF’s Engagement Definition, Enid Burns, 4 April 2006
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