NEPALESE JOURNAL OF MANAGEMENT

VOLUME 11, NUMBER 2, APRIL 2024

N
J Nepalese
Journal of Management

M
Impact of digital marketing on consumer purchasing behavior in
Kathmandu Valley
Bivek Kumar Yadav, Dhananjay Chaturbedi and Pushkar Neupane*
Abstract
This study examines the impact of digital marketing on consumer buying behavior
in Kathmandu Valley. Consumer buying behavior is the dependent variable. The selected
independent variables are email marketing, online advertising, social media marketing, video
marketing and influencer marketing. The primary source of data is used to assess the opinions
of the respondents regarding impact of digital marketing on consumer buying behavior in
Kathmandu Valley. The study is based on primary data with 100 respondents. To achieve the
purpose of the study, structured questionnaire is prepared. The correlation coefficients and
regression models are estimated to test the significance and importance of digital marketing
on consumer buying behavior in Kathmandu Valley.
The study showed that online advertising has a positive impact on consumer buying
behavior. It implies that better online advertising stimulates the buying behavior of the
consumer. The result also reveals that social media marketing has a positive impact on
consumer buying behavior. It implies that better social media marketing stimulates the
buying behavior of the consumer. Moreover, video marketing has a positive impact on
consumer buying behavior indicating that better video marketing, stimulates the buying
behavior of the consumer. Furthermore, email marketing has a positive impact on consumer
buying behavior indicating that better email marketing stimulates the buying behavior of the
consumer. Similarly, the result also showed that influencer marketing has a positive impact
on consumer buying behavior. It indicates that better marketing through popular influencer
stimulate the buying behavior of the consumer.
Keywords: Consumer buying behavior, email marketing, online advertising, social media
marketing, video marketing and influencer marketing.
1. Introduction
Digital marketing has been considered a new form of marketing and
provided new opportunities for companies to do businesses. Marketing
activities conducted via digital channels enable advertisers to directly
communicate with potential customers in a rapid velocity and regardless
the geographical location. Digital marketing has been recently referred as
one of the best means to cut through the mess and interact directly with

* The authors are freelance researchers, Kathmandu, Nepal. E-mail: pushkarneupane25@gmail.com

NEPALESE JOURNAL OF MANAGEMENT VOLUME 11, NUMBER 2, APRIL 2024| 43

the consumer (Bala and Verma, 2018). In digital marketing, understanding

consumer behavior is key for marketing success as consumers have embraced
utilizing the internet and online socializing tools (Vinerean et al., 2013).
Consumer purchase behavior is influenced by having the knowledge and
being brand oriented. Similarly, brand awareness is coupled with good brand
perception and loyalty result with a stronger brand image in consumer’s
mind, which will influence the consumers positively and becomes part of
their purchase behavior (Malik et al., 2013). Consumer purchase behavior
is how individuals, organizations, and groups select, buy and make use of
product, service, experience or ideas to satisfy their needs and wants. Social
networks are increasingly taking up a greater share of consumer time spent
online. Users are also using different online formats to communicate, such
as Blogs, YouTube, Myspace, Instagram and Facebook to share information
about the product or service and also to contact the other consumers who are
also seen as a more objective information source (Kozinets, 2002).
The world is witnessing major developments in communications due
to the intensive spread of technology and information through the internet
using different mediums such as the smartphone, social media platforms,
and the electronic word-of-mouth (Al-Qaysi and Al-Emran, 2017). These
technological advancements make the world look like a small village as
these communication media are able to facilitate access and interaction
with consumers (Malik and Al-Emran, 2018). Consumers use digital
communication channels to search for product information and services. It has
become part of people’s everyday life. Today, digital marketing has become
a phenomenon that brings together customization and mass distribution to
accomplish marketing goals. Digital marketing is a product or service that
uses digital channels to reach consumers. Their objective is to promote the
brands through various medium form of digital media. Social media are a
great opportunity to establish significant relationships and create ways of
social interaction defined through dynamic exchanges between their members
(Yasmin et al., 2015).
Digital marketing has gotten astounding changes the manner by which
the advertisers showcase the item and the manner by which the clients are
purchasing the equivalent. Purchasing conduct of an individual impacts
numerous variables, and these components perpetually influences the
advertisers to coordinate the requirements of the clients as a rule and the
adolescent specifically. The unique aspect of social media and it immense
have revolutionized marketing practices such as advertising and promotion
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(Hanna et al., 2011). Likewise, Kaplan and Haenlein (2010) stated that there
are many advantages of using social media marketing as it helps to connect
business to consumers, develop relationships, and foster those relationship
in a timely manner at a low cost. Social media websites give an opportunity
to the organizations to connect and interface with potential and current
consumers, which will help to have a strong customer relationship and also to
build all-important meaningful relationships with consumers (Mersey et al.,
2010). When consumer trust the company, they realize that this organization
can satisfy their requirements and needs and in the long run, they become
committed to the company. Consumer online purchase decisions have mainly
focused on identifying the factors that affect the willingness of consumers
to engage in internet shopping. Consumers with greater Internet experience
will probably utilize on the web channels to gather item data because the
cost of collecting information is less costly than that from offline channels.
Mahalaxmi and Ranjith (2016) examined the implication of digital marketing
in consumer purchase decision and to find out that the consumers are aware
of digital marketing and the digital channels influence in their purchase
decision. The study revealed that customers are aware of digital marketing
and they prefer to by electronic and shopping goods through digital channels
in their purchase behaviour. As the world moving towards digital era, the
digital channels play vital role in increase of sales of any firm’s products.
As digital marketing technologies enable personalization, Wagner
et al. (2020) explored its impact on consumer behavior in the e-commerce
setting. The study found that personalized recommendations and targeted
advertisements significantly increase consumer satisfaction, leading to higher
conversion rates and repeat purchases. Omar and Atteya (2020) examined the
impact of digital marketing channels (E-mail marketing, mobile marketing,
and retargeting) on the consumer buying decision process in the Egyptian
market. The findings revealed that e-mail marketing significantly influences
consumer decisions in the post-purchase and information research stages but
has a negative effect during the purchase decision stage. Mobile marketing
has an overall negative impact on consumer decisions across all stages. On the
other hand, retargeting has a significant positive effect on consumer decisions,
particularly in the evaluation and information research stages. Online reviews
play a vital role in shaping consumer perceptions. Cooley and Parks-Yancy
(2019) explored the influence of consumer trust in online reviews on purchase
decisions. The study found that positive reviews increase consumer trust and
encourage purchase intent, while negative reviews have the opposite effect.
Social media platforms have emerged as influential channels for marketers to
NEPALESE JOURNAL OF MANAGEMENT VOLUME 11, NUMBER 2, APRIL 2024| 45

engage with consumers. Social media marketing campaigns can create a sense
of community and brand loyalty, resulting in increased purchase intention
among consumers. Furthermore, Gupta et al. (2020) emphasized the role of
social media influencers in shaping consumer preferences and fostering trust,
ultimately impacting purchase decisions.
Digital advertising is a marketing communication effort made by
marketers in promoting products or service agents through digital channels
(Yang et al., 2018). According to Alamsyah et al. (2021), consumer behavior
and digital advertising have positive relationship when consumer gets
engaged in digital platform. Similarly, Saleem and Abideen (2011) defined
digital advertising as communications regarding products, services, or ideas
through digital media. The study found that companies which include not
only traditional online media, but also interactive media such as digital
signage, smartphone, or virtual reality platforms influence the consumer
behavior directly. According to Tobi et al. (2020), digital advertisements are
becoming more attractive as marketing communication tools for reaching
targeted customers in a variety of methods and places. Digital advertising
has a significant positive relationship with consumer behavior as video,
animation, and music has major impact on individual’s behavior (Gilaninia
et al., 2013). Putter (2017) highlighted that consumer buying behaviors are
not simply influenced by traditional channels, but social media plays an
important role in the process of consumer buying behavior, which is now
heavily affected by peer reviews, social networks, blogs, etc. Jacinto et
al. (2021) evaluated the influence of social media marketing on consumer
buying behavior, particularly among Panabo City citizens who mostly use
social media websites to purchase products and services. The result showed
that there is a positive, moderate, and significant correlation between social
media marketing and consumer buying behavior.
In the context of Nepal, Devkota et al. (2021) investigated attitude
towards online advertising in Kathmandu Valley. The study found that good
quality elements of advertisement have a significant influence on attitudes
toward online advertising in online platforms. The findings suggested that
good for the economy and quality elements of online advertising have a
significant influence on attitudes toward online advertisements. Rana (2016)
revealed that consumers are less concern about the brand image while making
a purchase decision. The findings also revealed that people are more influenced
by word of mouth and opinion given by the people they know on Facebook and
it substantially affects their buying behaviour. The least effective Facebook
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marketing factor is celebrity endorsement which implicates that consumers

are more affected by views of friends and family rather than endorsement
done by celebrities.
The above discussion reveals that the empirical evidences vary greatly
across the studies concerning the effect of digital marketing on customer
buying behavior. Though there are above mentioned empirical evidences
in the context of other countries and in Nepal, no such findings using more
recent data exist in the context of Nepal. Therefore, in order to support one
view or the other, this study has been conducted.
The main purpose of the study is to analyze the effect of digital marketing
on customer buying behavior in Kathmandu Valley. Specifically, it examines
the impact of email marketing, online advertising, social media marketing,
video marketing and influencer marketing on customer buying behavior in
Kathmandu Valley.
The remainder of this study is organized as follows. Section two
describes the sample, data and methodology. Section three presents the
empirical results and the final section draws the conclusion.
2. Methodological aspects
The study is based on the primary data. The data were gathered
from 100 respondents through questionnaire. The respondents’ views were
collected on email marketing, online advertising, social media marketing,
video marketing and influencer marketing. The study is based on descriptive
and causal comparative research designs.
The model
The model estimated in this study assumes that consumer buying
behavior depends on email marketing, online advertising, social media
marketing, video marketing and influencer marketing. Therefore, the model
takes the following form:
CB= β0 + ß1 OA+ ß2 SSM + ß3 VM + ß4 EM + ß5 IM + e
Where,
CB = Consumer buying behavior
OA = Online advertising
SSM = Social media marketing
VM = Video marketing
EM = Email marketing
IM = Influencer marketing
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Online advertising was measured using a 5-point Likert scale where

the respondents were asked to indicate the responses using 1 for strongly
disagree and 5 for strongly agree. There are 5 items and sample items include
“Generally, I like ads that I see on the internet”, “I want to try products/services
by seeing ad created by the sponsor company” and so on. The reliability of the
items was measured by computing the Cronbach’s alpha (α = 0.74).
Social media marketing was measured using a 5-point Likert scale
where the respondents were asked to indicate the responses using 1 for
strongly disagree and 5 for strongly agree. There are 5 items and sample
items include “Social media marketing are valuable source of product/service
information”, “Social media marketing are convenient source of product/
service information” and so on. The reliability of the items was measured by
computing the Cronbach’s alpha (α = 0.786).
Video marketing was measured using a 5-point Likert scale where the
respondents were asked to indicate the responses using 1 for strongly disagree
and 5 for strongly agree. There are 5 items and sample items include “I prefer
watching a video about a product or service before making a purchase”, “I
used to share a video with others if i find it interesting or relevant to my
interest” and so on. The reliability of the items was measured by computing
the Cronbach’s alpha (α = 0.801).
Email marketing was measured using a 5-point Likert scale where the
respondents were asked to indicate the responses using 1 for strongly disagree
and 5 for strongly agree. There are 5 items and sample items include “I like
receiving emails from companies about product and services”, “I prefer email
marketing as an effective digital marketing tool” and so on. The reliability of
the items was measured by computing the Cronbach’s alpha (α = 0.834).
Influencer marketing was measured using a 5-point Likert scale where
the respondents were asked to indicate the responses using 1 for strongly
disagree and 5 for strongly agree. There are 5 items and sample items include
“I am familiar with the concept of influencer marketing”, “I trust product
recommendations or endorsements from influencers” and so on. The reliability
of the items was measured by computing the Cronbach’s alpha (α = 0.768).
Consumer buying behavior was measured using a 5-point Likert scale
where the respondents were asked to indicate the responses using 1 for
strongly disagree and 5 for strongly agree. There are 5 items and sample items
include “Digital marketing influence my consumption behavior”, “I rely on
digital marketing activities for product and service information” and so on.
The reliability of the items was measured by computing the Cronbach’s alpha
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(α = 0.791).
The following section describes the independent variables used in this
study along with the hypothesis formulation.
Online advertising
Online advertising can help to increase consumers’ awareness of
a brand and its products or services. This can make them more likely to
consider the brand when they are making a purchase decision. Some forms
of online advertising, such as time-limited offers or limited-edition products,
can create a sense of urgency for consumers. This can make them more likely
to buy the product or service before the offer expires or the product sells
out (Gabriel and Kolapo, 2015). Online advertising can be personalized to
target specific consumers with messages that are relevant to their interests.
This can make the advertising more effective and more likely to generate
a positive response (Wang and Sun, 2010). When consumers see positive
reviews or recommendations from other consumers, it can help to build trust
and credibility for a brand. This can make them more likely to buy from the
brand in the future (Nizam and Jaafar, 2018). Based on it, the study develops
following hypothesis:
H1: There is a positive relationship between online advertising and consumer
buying behavior.
Social media marketing
Social media marketing can help brands to build relationships with
consumers. This can make consumers more likely to trust the brand and be
loyal to it (Wibowo et al., 2020). Social media marketing can be personalized
to target specific consumers with messages that are relevant to their interests.
This can make the marketing more effective and more likely to generate a
positive response (Prasath and Yoganathen, 2018). Some forms of social
media marketing, such as contests or giveaways, can create a sense of urgency
for consumers. This can make them more likely to buy the product or service
before the contest ends or the giveaway is over (Godey et al., 2016). Based on
it, the study develops following hypothesis:
H2: There is a positive relationship between social media marketing and
consumer buying behavior.
Video marketing
High-quality video content can help build trust and credibility for a
brand. Consumers often feel more confident about purchasing from a company
that they feel they know and trust (Mahalaxmi and Ranjith, 2016). Engaging
NEPALESE JOURNAL OF MANAGEMENT VOLUME 11, NUMBER 2, APRIL 2024| 49

videos are more likely to be shared on social media and other platforms,
which can significantly increase their reach and exposure. This sharing effect
can lead to higher brand awareness and more potential customers (Saleem
and Abideen, 2011). According to Putter (2017), with the increasing use of
mobile devices, video content is easily accessible to consumers on the go.
This accessibility allows brands to reach a wider audience and capitalize on
mobile-driven consumer behavior. Based on it, the study develops following
hypothesis:
H3: There is a positive relationship between video marketing and consumer
buying behavior.
Email marketing
Email marketing allows businesses to segment their audience based on
various criteria, such as demographics, location, interests, or past interactions
with the brand. Targeted emails are more relevant to recipients, increasing
the chances of converting them into customers (Zhang et al., 2017). Emails
can provide valuable information about products, services, and industry
trends. Educating customers through emails can help them make informed
buying decisions, especially for complex or high-involvement purchases.
Effective email marketing allows businesses to personalize messages based
on customer preferences, behaviors, and purchase history (Cases et al., 2010).
Personalized emails can make customers feel valued and understood, leading
to increased trust and a higher likelihood of making a purchase. Regular email
communication allows businesses to nurture relationships with their audience
over time. By consistently providing value through content, updates, and
offers, customers are more likely to develop loyalty and trust in the brand
(Nawaz and Kaldeen, 2020). Based on it, the study develops following
hypothesis:
H4: There is a positive relationship between email marketing and consumer
buying behavior.
Influencer marketing
Influencer marketing is a strategy that involves collaborating with
individuals who have a substantial following and influence on social media
platforms or other online channels. These influencers promote products or
services to their audiences, and their recommendations can significantly
impact consumer behavior (Alamsyah et al., 2021). Influencer marketing is
a form of social media marketing that uses influencers to promote a brand
or product. This can be a very effective way to reach a large audience and
generate interest in a brand. Influencers often build strong connections with
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their followers based on trust and authenticity (Gilaninia et al., 2013). When
an influencer recommends a product or service, their audience perceives it as
a genuine recommendation from someone they admire and trust, rather than
a traditional advertisement. Influencers are skilled at storytelling and creating
relatable content. By incorporating products or services into their narratives,
they can form a personal connection with their audience, leading to increased
interest in the promoted items (Wagner et al., 2020). Based on it, the study
develops following hypothesis:
H5: There is a positive relationship between influencer marketing and
consumer buying behavior.
3. Results and discussion
Correlation analysis
On analysis of data, correlation analysis has been undertaken first and
for this purpose, Kendall’s Tau correlation coefficients along with means and
standard deviations have been computed, and the results are presented in
Table 1.
Table 1: Kendall’s Tau correlation coefficient matrix
This table presents Kendall’s Tau correlation coefficients between dependent variable and
independent variables. The correlation coefficients are based on 100 observations. The
dependent variable is CB (Consumer buying behavior). The independent variables are OA
(Online advertising), SMM (Social media marketing), IM (Influencer marketing), EM (Email
marketing), and VM (Video marketing).
Variables Mean SD CB EM SMM OA VM IM
CB 3.740 0.726 1
EM 3.880 0.919 0.354 **
1
SMM 3.473 0.787 0.344** 0.392** 1
OA 3.467 0.897 0.502** 0.473** 0.525** 1
VM 3.844 0.929 0.331** 0.343** 0.514** 0.479** 1
IM 3.617 0.772 0.522** 0.343** 0.375** 0.537** 0.297** 1
Notes: The asterisk signs (**) and (*) indicate that the results are significant at one percent
and five percent level respectively.
Table 1 shows that online advertising is positively correlated to
consumer behavior. It implies that better online advertising stimulates the
buying behavior of the consumer. The result also reveals that social media
marketing is positively correlated to consumer behavior. It implies that better
social media marketing stimulates the buying behavior of the consumer.
Moreover, video marketing is positively correlated to consumer behavior
indicating that better video marketing, stimulates the buying behavior of the
NEPALESE JOURNAL OF MANAGEMENT VOLUME 11, NUMBER 2, APRIL 2024| 51

consumer. Furthermore, email marketing is positively correlated to consumer

behavior indicating that better email marketing stimulates the buying behavior
of the consumer. Similarly, the result also shows that influencer marketing is
positively correlated to consumer behavior. It indicates that better marketing
through popular influencer stimulate the buying behavior of the consumer.
Regression analysis
Having analyzed the Kendall’s Tau correlation coefficients matrix, the
regression analysis has been carried out and the results are presented in Table
2. More specifically, it presents the regression results of email marketing,
online advertising, social media marketing, video marketing and influencer
marketing on consumer buying behavior.
Table 2: Estimated regression results of email marketing, online
advertising, social media marketing, video marketing and influencer
marketing on consumer buying behavior
The results are based on 100 observations using linear regression model. The model is CB
= β0 + ß1 OA+ ß2 SSM + ß3 IM + ß4 EM + ß5 VM + e, where the dependent variable is CB
(Consumer buying behavior). The independent variables are OA (Online advertising), SMM
(Social media marketing), IM (Influencer marketing), EM (Email marketing), and VM (Video
marketing).
Regression coefficients of Adj.
Model Intercept SEE F-value
EM SMM OA VM IM R_bar2
2.270 0.410
1 0.286 0.563 40.746
(9.719)** (6.383)**
1.725 0.519
2 0.432 0.503 76.396
(7.678)** (8.740)**
1.556 0.593
3 0.539 0.453 116.949
(7.843)** (10.814)**
1.478 0.592
4 0.396 0.519 65.785
(5.434)** (8.111)**
1.306 0.460
5 0.524 0.460 110.033
(6.110)** (10.490)**
1.564 0.156 0.417
6 0.452 0.493 41.897
(6.694)** (2.144)* (5.541)**
1.409 0.015 0.177 0.463
7 0.550 0.447 41.350
(6.577)** (1.940) (2.076)* (4.697)**
1.121 0.005 0.071 0.417 0.220
8 0.752 0.436 34.045
(4.622)** (0.061) (0.760) (4.257)** (2.420)*
0.789 0.021 0.038 0.232 0.183 0.323
9 0.633 0.404 35.155
(3.331)** (0.306) (0.431) (2.291)* (2.169)* (4.106)**
Notes:
i. Figures in parenthesis are t-value
ii. The asterisk signs (**) and (*) indicate that the results are significant at one
percent and five percent level respectively.
iii. Consumer buying behavior is the dependent variable.
The regression results show that the beta coefficients for online
advertising are positive with consumer behavior. It indicates that online
52 | NEPALESE JOURNAL OF MANAGEMENT VOLUME 11, NUMBER 2, APRIL 2024

advertising has a positive impact on consumer behavior. This finding is similar

to the findings of Gabriel and Kolapo (2015). Likewise, the beta coefficients
for social media marketing are positive with consumer behavior. It indicates
that social media marketing has a positive impact on consumer behavior. This
finding is consistent with the findings of Prasath and Yoganathen (2018).
Moreover, the beta coefficients for video marketing are positive with consumer
behavior. It indicates that video marketing has positive impact on consumer
behavior. This finding is similar to the findings of Saleem and Abideen (2011).
Furthermore, the beta coefficients for email marketing are positive with
consumer behavior. It indicates that email marketing has a positive impact on
consumer behavior. This finding is consistent with the findings of Nawaz and
Kaldeen (2020). Similarly, the beta coefficients for influencer marketing are
positive with consumer behavior. It indicates that influencer marketing has a
positive impact on consumer behavior. This finding is similar to the findings
of Alamsyah et al. (2021).
4. Summary and conclusion
Digital marketing is a broad marketing concept that describes the
marketing of products or services using digital technologies, mainly on
the Internet, but also includes display advertising, mobile phones, and any
other digital medium. Digital marketing is the promotion of products or
brands through one or more forms of electronic media and it differs from
conventional marketing. Consumers are increasingly using social media sites
to search for information and turning away from traditional media, such as
television, radio, and magazines. The advent of social media has transformed
traditional one-way communication into multi-dimensional, two-way, peer-
to-peer communication
This study attempts to determine the impact of digital marketing on
consumer buying behavior in Kathmandu Valley. The study is based on
primary data with 110 observations.
The study showed that online advertising, social media marketing,
influencer marketing, email marketing and video marketing have a positive
impact on consumer buying behavior in Kathmandu Valley. The study
concluded that better digital marketing leads to higher level of impact on
consumer buying behavior. Online advertising can be personalized to target
specific consumers with messages that are relevant to their interests. This can
make the advertising more effective and more likely to generate a positive
response. The study also concluded that online advertising followed by
influencer marketing is the most influencing factor that explains the change
NEPALESE JOURNAL OF MANAGEMENT VOLUME 11, NUMBER 2, APRIL 2024| 53

in consumer buying behavior in the context of Kathmandu Valley.

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