Pacific Business Review International

Volume 13 issue 8 February 2021

Predicting Factors influencing Consumer's purchase intention: A Study

of Consumers redirected through Affiliate Marketing Program

Dr. Indrajit Ghosal Abstract

Assistant Professor Companies are now specifically approaching global consumers and
Amity University, Patna
harnessing the advantages that the online channel provides to achieve
Dept. Amity Institute of Information Technology
competitive advantage due to a subsequently strong increase in digital
technology penetration. In these situations, affiliate marketing has
Bikram Prasad emerged as effective strategies for e-commerce to boost revenue by
Research Scholar, overcompensation. The paper aims to examine the major effect of
Seacom Skills University, W.B
latent factors on online buyers who are redirected through Affiliate
Marketing Links. The purchase intention of such consumers has been
Dr. Pragya Singh evaluated with their demographic categorization too. The implicit
Asst. Professor results analyzed the advantages of the affiliate marketing approach
Dept: Faculty of Management empirically and are correlated with latent variables such as Product
Symbiosis Centre for Management Studies Value, Risk Factor, Discounted product, Brand knowledge, and last
Noida
Expert Feedback. The mindset and actions among online shoppers
redirected through affiliate links was further substantiated by this
investigation. The study have used empirical analysis through has
quantitative investigation of the reliable sources using Factor Analysis
and ANOVA method. The results obtained would enable customers, e-
commerce organizations and entrepreneurs to improve their current
online shopping platform operations by implementing an Affiliate
Marketing strategy. The study will holistically increase the relevancy
and rate of adoption of the digital marketing strategy among the
existing organizations as well as for Digital Entrepreneurs.

Keywords:
Digital Marketing, Affiliate Marketing, Buying intentions,
Demographic profiles, Correlation, Latent Factors.

Introduction
Marketers are facing new problems and opportunities in this digital
age. The advertisers' use of electronic media to advertise the goods or
services in the marketplace is called digital marketing. Digital
marketing's primary objective is to pull in new clients and empower
them to draw in with the brand through digital media. Digital
marketing campaigns are becoming increasingly prevalent, with
digital channels rising. Incorporated into marketing campaigns and
people are more likely to use digital devices than physical stores.
Because digital marketing relies on ever-evolving and rapidly-
changing technology, so are the innovations and approaches in digital

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marketing. Digital marketing includes no-channels. site with educative and engaging games to hush up about
Marketers are increasingly bringing brands closer to clients in every case close (Rowley 2004). Digital
consumers ' lives. The situation of clients as value co- marketing has the key benefit of reducing costs and rising
producers is getting always significant (Prahalad and scope. The expense of digital advertising is typically lower
Ramaswamy, 2004). In their examination Khan and contrasted with other marketing strategies, for example,
Mahapatra (2009) noticed that technology assumes a direct deals or distribution networks. This additionally
crucial job in improving the nature of services s delivered permits organizations to meet purchasers that may not be
by the business units. Electronic advertising as indicated by accessible because of brief and locational impediments of
Hoge (1993), is an transfer of merchandise or services from current distribution networks. As a rule, one of the key
dealer to purchaser which includes at least one electronic advantages is that it will permit organizations to extend
techniques or media. The presentation of -marketing extension and cut costs (Watson et al . 2002; Sheth and
started with the utilization of telegraphs in the nineteenth Sharma 2005). Affiliate Marketing is one such type of
century. After some time, electronic media has been the promoting. Affiliate Marketing is a type of digital
prevailing advertising power in the development and mass marketing where an organization (a sponsor or trader)
reception of phone, web, and digital TV. Marketers use the consents to an agreement with another entity (a creator or
online platforms to enhance brand communications and partner) to show a related destinations which is linked to
relationships. Mc Donalds, for instance, has made online their website (Goff, 2006).
networks for youngsters, including the as the Happy Meal

Affiliate Marketing is a promoting model in which an more extensive his network. The affiliate at that point
organization repays third-party publisher to create traffic or imparts and advances the items offered on the web based
leads to the organization's products and services.The business stage to his network. The member does this by
thirdparty publisher. Are Affiliates, and the commission actualizing standard advertisements, text promotions, or
charge boosts them to discover approaches to generate connections on its various claimed sites or by means of
more traffic through their affiliate links. An E-commerce email to its customer base. Firms use commercials as
business who wants to reach extensive base of Internet articles, recordings, and pictures to cause an audience to
clients and customers may recruit affiliate. An affiliate notice a help or item. Affiliate diverts guests who click on
could be the proprietor of various sites or email marketing one of these connections or advertisements to the online
lists; the more sites or email records that an affiliate has, the business webpage. In the event that they buy the item or

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administration, the E-commerce merchant acknowledges 100 retailers outsource their partner programs (eBay,
the associate's record for the settled upon commission, 2007).In this inquiry, an attempt was made to derive the
which could be 5% to 10% of the price obtained through relationship between the factors affecting the online buying
sales of the concerned product. behavior among the online buyers who are redirected
through affiliate marketing link. To succeed, several
The key objectives of affiliate marketing are to advance
literature writers such as I Ghosal et al. (2020) have
and offer products or service through direct access to
published a paper to assess the significant impact of the
distributor, driver webpage traffic to advertisers and
affiliate marketing strategy on the millennial attitude to
produce deals from online clients in return for a fee.
online shopping. The implied results examined
(Tweney, 1999; Del Franco and Miller, 2003; Goldschmidt,
qualitatively the advantages of the affiliate marketing
Junghagen and Harris, 2003).Affiliate marketing has
strategy and its influence on the perceived ease of use and
become one of the lead generation promotion tools in the
perceived usefulness. This has additionally validated
digital promotion programmes. Amazon began paying
Attitude and conduct towards utilizing on the web
websites in 1996 for referring clients to join their site (Dabs
shopping. Z Patrick and OC Hee (2019) concentrated in
& Manaktola, 2007). In the earlier days, aircraft, and then
their investigation on three predominant variables
hotels and other travel agencies identified the idea of
impacting behavioural intention to utilize specific
affiliate marketing through global distribution. The
innovation (for example affiliate marketing) that is relative
tourism sector was one of the sector to understand that IT
Advantage , Compatibility, and observability . Relative
have enabled the organizations to build perceivability,
advantage is characterized by the level at which existing
increment in market share due to 24 hours of online access
practice is viewed as underneath progress and associated
to consumers, and give answers to problems faced by
with an assortment of administrations, fulfillment social,
traditional industry. (Inkpen, 1998; Werthner and Klein,
and financial diversity. Compatibility alludes to the degree
1999; Barnett and Stading, 2001; Law, Leung and Wong,
at which advancement will be seen in accordance with past
2004).Affiliate marketing is a type of online advertising in
developments, socio-cultural qualities or viewed
which merchants share a proportion of sales income
innovation. At the other hand, observability is where
generated by each customer who reached at the company's
different purchasers or different partners can see the
website via a content provider (Gallaugher et al. 2001).
constructive outcomes of utilizing the innovation however
Dwivedi et al (2017),in their paper indicated the lack of
not the entrepreneur. Li et al . (2011) studied the
research effort in the field of affiliated marketing . Gregori
experimental aspects of m-commerce regardless of
N et al (2013) highlighted trust and trust enhancing factors
consumption type and the analysis found that emotion
that play an important role and affiliates need to expose
plays a very important role in customer experience and
their skills and integrity to their consumers. Dwivedi R
concluded that utilitarian factor has a negative impact on
(2017) highlighted the positive relationship between
consumer consumption experience. Marketing affiliates
attitude, advertising, price and perception. Yasin et
have their own challenges in operating effectively among
al.(2015) tried to evaluate both advertisers and consumers
stakeholders (Affiliate Advertiser, Affiliate, Consumer)
the value of digital marketing. Study showed that even for a
with objectives of its own. According to (Godes et al . 2005)
start-up or a local company, there is a way to market their
Online product review sites have exerted an increasingly
product via Internet. Prabhu and Satpathy (2015) examined
influential impact on customer perceptions and defiance.
the adaptability of the affiliate marketing in the Indian
Alternatively, Word of mouth (WOM) appears to be more
scenario and assessed the potential it holds for the future.
reliable than improvement, as it is known to have gone
The study clarified the entire affiliate process in depth with
through the "people like me" evaluation (Allsop, Bassett,
the Affiliate Marketing concept, and also shed light on the
and Hoskins 2007). Few research has acknowledged that e-
affiliate system adopted by different e-commerce websites.
WOM is also one of the primary factors influencing online
The research showed that marketing by affiliates would
shoppers' purchase decisions (Keller, 2007; Olbrich, R., &
continue to grow.
Hundt, M 2018). At the same time the effect of
Gap and Research problems: demographic characteristics on internet marketing is also
found to be too high. Notwithstanding the lack of
Contemporary researcher's like Stephanie, 2019, said
consistency across research reports (GVU, 1999), the web
affiliate marketing was a technology that allowed a human-
consumer population is predominantly white, young, well-
centered approach that could pave new dimensions of
educated and wealthy. One of the main metrics of the
virtual sales. Affiliate marketing is a way of building value-
efficacy of internet ads is consumer expectations" (Mehta,
based approach to care management for niche surfers.
2000). The research done by (R Dwivedi, 2017) that trust,
Online retail data reveals that about 80 percent of the top

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attitude, indignity and perception of prices depend on the can precisely relate the significant association between
consumer's gender. The investigation additionally shows factors influencing affiliate marketing purchase decision
that there is a huge connection between the usefulness of and demographic contour dependent approach. Therefore,
indignity and advertisement There is a factually critical conducting a research to check the latent relational factors
connection between usefulness and ads, price perception of online buying intent mediated by demographic-based
and advertisement utility as well as Attitude and Price approach is felt to be important.
perception. Yet inadequate literature has been found that

Purpose of the study Based on literature survey and theoretical study,

researchers from Gap have reached a common destination
The work aims to analyze the inter-relations between the
to frame the objectives. The basic aim which we plan to
purchasing behaviour of users of affiliate marketing
achieve:
towards online shopping portals with respect their
demographic categorization. Through this study n To discover these latent factors affect the marketing of
researcher's look forward to find potential of affiliate Consumers redirected through Affiliate Link.
marketing in the recent era, perception of the consumer's
n To test the meaningful association between extracted
redirected through Affiliate Marketing links online
latent factors and demographic categorization such as
shopping portals and expectations factors to change the
gender, age, income, jobs.
buying motives. The extended empirical research postulate
to draw a valuable conclusions of the co-relations that Hypothesis:
occur between attitude of consumer's and the adoption of
(H0)1: There is no significant correlation between Gender
affiliate marketing with more latent influences.
and E-Buying behaviour of Consumers redirected
Objectives: through affiliate link.

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(H0)2: There is no significant correlation between Age and researcher found the sampling process stratified by Simple
E-Buying behaviour of Consumers redirected through Random sampling under Probability Sampling.
affiliate link.
Questionnaire Development and Pilot Testing
(H0)3: There is no significant correlation between income
Along with the online survey, the meeting with the
and E-Buying behaviour of Consumers redirected
entrepreneur was held during 'June 15th-July 10th' to gain
through affiliate link.
approval for their participation in the study. The
(H0)4: There is no significant correlation between jobs and respondents (affiliate advertiser) were usually happy to
E-Buying behaviour of Consumers redirected through take part in the study. The talks took place about 21/2 hrs.
affiliate link. Notes were kept during the interviews mainly to help the
researcher understand the data gathered about the target
Research Methodology
demographic, the sample size of the total population, the
Design/Methodology/Approach: list sampling frame and the region of the study
investigation. After collecting the population list from
This study is based on online survey and existing literature
affiliate advertiser researchers set a total of 100 sample
review on the affiliate marketing factors and its impact on
sizes and equally divided into two districts, the researcher
consumer's buying behaviour towards adoption of online
went to collect data from the identified respondents
products.
through Google survey about the importance, purpose and
Research Methodology potential scope of the study, which the researcher contacted
the respondents. Ultimately, it should be noted that quick
Research methodology consists of a set of actions or
and friendly interactions are observed.
measures needed to effectively carry out research work. In
the sense of science it includes not just testing techniques The data was gathered through questionnaire administered
but also reasoning behind the techniques that we use. In through Google Forms. The questionnaire consists of three
more detail, in this section , the authors explain the sections. The first part of the questionnaire was designed to
Sampling Design, Questionnaire Development and Pilot collect information about the demographics of potential
Testing, the data collection techniques, Statistical Tools for respondents including gender, age, income and
Research and last one research process. employment. The second section involves online
consumers who buy products from online shopping portals
Sampling Design:
after being redirected through affiliate marketing links. The
The survey concept was designed to be applied to the e- final section of the questionnaire estimates the latent
shopping preferences of affiliate customers, in compliance factors influencing customers against the marketing of
with the correct research methodology. Consequently, affiliates. The calculation frameworks include the plan to
according to (Sandelowski, 1995) sampling methods give buy with a Likert 5 point scale from 1 to 5 where 1-is
the researcher cognition of the sample, which can also be strongly disagree with 5-strongly agree. Statistical analysis
used as a generalization and basis for the entire was carried out on the products and advanced by reliability
investigation population. Herewith, for all this study, and validity test. TAs indicated by (Singh, 1995) poll was
researcher's pull out the sample of respondents who used to converted into Hindi and afterward made an interpretation
shop online products after being redirected through of into English to keep up the semantic coherence between
Affiliate Marketing Links. The sample has been collected the two dialects.
by the selected affiliate advertisers who move / manage
Data Collection Methods:
their company through the affiliate connection provided by
such as Amazon Associates, Flipkart, DGM India with the A data collection technique refers to the data unit selection
objective of collecting electronic data through the survey tools / methods. In the wider context, the data collection
and being subject to data cleaning, so that missing process involves two unit selection techniques and these
information can be identified and presumption of are:
normality can be achieved. The researcher's collected 100
1) The Method of Census
respondents via the affiliate customer list generated by
affiliate advertisers. A total of 100 respondents were chosen 2) Sample Technology
for this survey, in which 135 questionnaires were
Since we know that for every study, there are two ways to
distributed to shoppers redirected through affiliate
collect the data, they are: 1 ) primary data and 2) secondary
marketing links along with the non-discriminatory
data. The present study is focused primarily on primary
demographic contour. In this proposed study, the

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data from 100 respondents (list of respondents obtained Income, Occupation. Demographic Events is generally
through Affiliate Advertisers).Until collecting the data guided by fertility, mortality and Migration. This factors
researcher's the questionnaire was classified with are key variables in the Fundamental Population Equation.
demographic profiles of the respondent such as Sex wise
Population Equation
researcher framed a) Male b) Female and c) others. Gender
wise broken down into 15-22, 23-30,31-38,39-46,47-54 Change in population = Inputs – Outputs Inputs = Births
and > 54. At the other hand Income wise investigators were + In-migration
framed into 10,000-16,000, 17,000-23000, 24,000-30,000,
Outputs = Deaths + Out-Migration
31,000-37,000, 38,000-44,000, and > 44,000. Finally
researcher's divided the job group into 1) student, 2) ∆P = (B + I) − (D + O)
businessman, 3) house wife and 4) working. The survey
Equation 1: Fundamental Population Equation
was conducted during the period May 2020-June 2020. At
the other hand, for the secondary sources, few data have The factors which affect the population growth are
been collected from published repute articles, case studies, Fertility, Mortality and Migration. These in turn are
accounts, documents etc. influenced by the social-economic factors like Occupation
of the person, Income. The factors like Age, gender also
Operationalisation of Demographic Variables with
affect the population characteristics. This in turn triggers
relation to triggering effect on Purchase Intention:
and alters the consumption behavior of the consumers. The
Demography is concerned with the study of human effect of the demography on the purchase intention of the
populations rather than the individual. In lieu of such facts, Consumers buying products from online shopping portals
demography is closer to deal with populations and groups can be substantiated through proper analysis. In this
rather than individuals. It is concerned with the population investigation, the demographic categorization like Age,
changes by age, sex, gender, and other characteristics like gender, Income and Occupation have been considered.

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Tools for Research: Discounted product, Brand knowledge and last one Expert
feedback with demographic variables (such as gender , age,
The data was subjected to proper arrangement and
income and Jobs) about Online Buying behaviour of the
statistical analysis through SPSS 23 software. For this
Affiliate Marketing Users.
whole investigation, the method Factor analysis was used
to identify certain latent factors influencing customers to Analysis and Findings
shift their purchase preferences against affiliate marketing.
Factor Analysis: The Principal Component Analysis
Often this tool is named for tool for data reduction. This
(PCA) was performed by extraction, rotation, and analysis.
method enables us to gain insight into the terms to be used,
Maximum probability and Eigen value greater than one is
and helps us identify various variables using few factors
set for further proceeding during extraction. VARIMAX
that explain data that is far more economically original
method, which means orthogonal rotation, has been used to
(Nargundkar, 2010). For data reduction, the Principal
evaluate the exploratory element. The latent components
Component Approach for Factor Analysis was used, along
such as Product value, Risk factor, Discounted product,
with Bartlett's test and the sample adequacy KMO process.
Brand knowledge and last one Expert feedback have been
Analysis of Variance (ANOVA) was used to test the
extracted through Principal Component Analysis (PCA).
relationship of factors such as Product value, Risk factor,

It is clear from the table above that the Cronbach's Alpha 0.60. Then it comes to the conclusion that the sample is
value for reliability testing on the total sample size is > accurate to investigate.

Notes: Principal factor analysis of components with 0.790; Bartlett spehericity check. 190; and p<0,000.
varimax rotation; KMO sampling adequacy measurement:

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The ANOVA test measures the samples according to their in the case of demographic variables like Gender , Age,
mean value. This is a statistical method which is used to Income and Jobs, the latent factors such as Product value,
assess whether or not the two or more groups differ Risk Factor, Discounted product, Brand knowledge and
significantly. When the P-value obtained is > 0.05, the null last one Expert Feedback where Null Hypothesis is rejected
hypothesis is accepted and the p-value is < 0.05 on the other are substantially related. Detailed table of the ANOVA
hand, then alternative hypothesis is accepted. The P-value analysis was shown:
greater than 0.05 was not obtained from this investigation

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Findings of the study: reputation of the organization and awareness among the
purchasers about the brands. The Expert Feedback
The empirical investigation have used validated tools
indicates about the ratings about the products given Digital
along with reliable primary data to extract the factors
Brand Influencers, Feedbacks of the consumer, after
affecting the E-purchase intention of the consumers who
reading .The affiliate link provided at the Webpage helps
used to shop products online after being redirected through
the consumers to redirect themselves to the Online
affiliate marketing links. The factors obtained through
Shopping Portals immediately after reading the Feedbacks
factor analysis are Product value, Risk Factor, Discounted
and observing the ratings. The significant association of the
Product, Brand Knowledge and Expert Feedback. The
factors obtained have been evaluated with the demographic
product value indicates the variables encapsulated by the
categorisation of the population. Gender is significantly
Product Clarification, Information regarding Product,
associated with Risk Factor, Discounted Product, Brand
Delivery Service, Cost and User Friendly. The Risk Factor
Knowledge and Expert Feedback with significance value
includes the variables related to the risk associated with the
0.020, 0.050, 0.011, 0.052 respectively. Age wise
financial transactions which have been taken care and
Significantly associated with Product value (0.012), Risk
minimised by the Online shopping portals. It includes Cash
factor (0.030) and Brand knowledge(0.021). Income is
on Payment delivery, payment on delivery, security related
significantly associated with Product value (0.051), Risk
to Credit Card transaction, and Fraud Advertiser. The factor
factor (0.040), Brand knowledge (0.031) and Expert
of discounted item incorporates Unmanifested factors like
feedback (0.052) .Jobs is significantly associated with
shopping offers, and occasional discount. The Brand
Product value(0.041), Discounted product(0.230), Brand
Knowledge specify about variety of the products,
knowledge(0.032), Expert feedback (0.033)

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Discussions and managerial implications of the study: feedback. These factors are extracted manifested after
mining the perception of the consumers buying products
The study investigates deeply about the perception of the
online after being redirected through affiliate links.
consumers towards online shopping portals. In this
Besides these the relationship between such traits of E-
investigation a specific niche of those consumers have been
purchase intention with the demographic categorization of
taken who are redirected to the webpage of shopping
the population. The demographic categorization used in
portals after being clicked through Affiliate links. The
this investigation are Age, Gender, Jobs and Income. The
consumers are landed to the Webpage of the shopping
implied findings of the research will have implication for
portals after clicking on the Affiliate links. The perception
the Online shopping portals as well as Affiliate Marketers,
of such consumers has been assessed through detailed
Affiliate Managers and a guiding way for the Digital
Empirical investigation. The factors manifested after
Marketers to frame their Digital Strategy. The details of the
screening their behavior are Product value, Risk factor,
implications of the study is given below in Figure 4.
discounted product, Brand knowledge and Expert

Future Scope of the Study:

The future scope of the study can be extended to following Limitations of the Study:
directions:
1) The sample size can be increased to have more idea
1) The results of this investigation is a guide to embed and about the perception of the Consumers buying products
imbibe knowledge about the adaptability of the Digital online after being redirected through affiliate links.
Marketing strategy. In time ahead, it will increase the
2) The study can be more specified and segmented
number of the organizations using digital marketing
according to the category of the products like Electronic
strategy.
Items, Apparels etc.
2) The micropreneurs and Entrepreneurs can use the
extracted findings to study feasibility of their technical Key Notes: https://neilpatel.com/blog/when-to-use-
environment. Hence this study will boost in feasibility affiliate-marketing/ (abstracted on 2nd May 2020)
study for Digital Entrepreneurs. References
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