EFFECT OF AFFILIATE MARKETING ON CONSUMER PURCHASE INTENTION FOR MALT BEVERAGE BRANDS IN ASABA METROPOLIS

CHAPTER ONE

INTRODUCTION

Background of the Study

Over the year, the digitalization of media and rapid technology advancements have brought about substantial changes in the area of online marketing. As a result, businesses are fighting fiercely to attract customers' attention through marketing campaigns. Internet advertising has grown in significance as a means of directly connecting with a global audience due to the rapid expansion of online media on a global scale (Turner,2019). Of all the online advertising techniques accessible, affiliate marketing has become one of the most powerful tools for creating leads. Affiliate marketing, also referred to as associate marketing, is a popular term for this type of advertising strategy. One well-liked choice for publishers engaging in affiliate marketing is Google AdSense. 

According to Abdelhady et al. (2020), businesses looking to advertise online usually do so using Google AdWords, while publishers utilize Google AdSense to show these adverts in an eye-catching way within their web content.  However, affiliate marketing has become a major source of income and a substantial industry.  Additionally, affiliate marketing is the act of working together with other businesses, websites, or organisations in order to promote their goods and services and reap rewards for both parties (Aldhama, 2022). It is also described by Anshari & Mahani in Batu et al. (2020) as a cooperative venture in which businesses, organizations, or websites work together to promote goods and services in order to generate revenue for both sides of a contract. Generally speaking, affiliate marketing is a method by which representatives of other people's brands offer their own goods in exchange for a commission if a sale results from their recommendations (Misra et al., 2021).

Undoubtedly, the modern business environment is dynamic by nature, and it takes more work than in the past to survive in it. Online retailers with affiliate programs in Nigeria, like Konga, Jumia, Jiji, DealDey, Kaymu, etc., have embraced the idea of affiliate marketing and the services of affiliate marketers to promote their products and services in exchange for commissions on purchases (Lestari & Maharani,2023). Customers will make purchases from the affiliate program thanks to its appealing content. Making decisions on what to buy is an expression of the process of selecting from among the available alternative product options. In other words, when making a purchase, customers select one option from a range of available possibilities. The advice of others, whether they are close friends, family, or other acquaintances, is one factor that affects customers to make purchases (Kotler et al., 2019). 

Moreover, the presence of consumer-owned buying interest also motivates customers to make purchases. Purchase intention refers to a consumer's desire to purchase a product based on past experiences and information (Abdullah, 2018). However, studies involving one hundred participants indicate that suggestions made by others have the power to affect respondents' intentions to make purchases (Virenabia & Oktafan, 2022). As a result, affiliate marketing is a perspective approach to online marketing and e-commerce. It involves assigning the burden of making sales to a third party, specifically a client who receives a commission for persuading other clients to buy products that a sponsor is offering (Grzegorz and Mchal, 2019). 

In order to receive the incentive, the individual who takes on the job of affiliate works hard to make sure that more products are sold. According to Jessica (2018), affiliate marketing is a kind of advertising whereby website A consents to display buttons from website B in exchange for a commission on any leads, sales, or clicks that website B generates. Even though affiliate marketing is receiving more attention, not much research has been done. Therefore, a survey will be conducted in order to evaluate the effect of affiliate marketing on consumer purchase intention for malt beverage brands in Asaba metropolis.

1.2 Statement of the Problem

Since the advent of the internet, the growth rate of the retail industry in Nigeria has changed. The precise impacts of affiliate marketing on customer behaviour are still poorly understood, despite its increasing popularity, especially in terms of how it affects purchase intentions. However, businesses and affiliates form partnerships through affiliate marketing, in which affiliates market goods and services in exchange for commissions on leads or sales that come from their promotion. Businesses benefit from this model because it maximises outreach through a variety of affiliate networks while minimising upfront marketing costs (Brouthers et al., 2018). However, the possibility of a conflict of interest, where affiliates put commissions ahead of the interests of customers, erode confidence and discourage buyers. 

Furthermore, affiliate marketing faces new possibilities and challenges as a result of the changing digital ecosystem. The affiliate marketing industry is changing as a result of the emergence of ad-blocking software, rising consumer mistrust of internet ads, and the expanding significance of tailored marketing strategies (Goldfarb & Tucker, 2021). Moreover, future marketing strategies can benefit from an analysis of how these patterns affect the connection between affiliate marketing and customer purchase intentions. Hence, it is in the light of these that the study seeks to evaluate the effect of affiliate marketing on consumer purchase intention for malt beverage brands in Asaba metropolis.

1.3  Objectives of the Study

The main purpose of this study is to evaluate the effect of affiliate marketing on consumer purchase intention for malt beverage brands in Asaba metropolis. Specifically, the study will;

1.Determine the extent to which consumers are aware of affiliate marketing strategy of Malt Beverage Brands in Asaba metropolis.

2.Determine the affiliate market strategies that trigger consumer purchase intention of Malt Beverage Brands in Asaba Metropolis.

3.Assess the factors that influence consumers' preferences of Malt Beverage Brands promoted through affiliate marketing.

4.Assess the impact of affiliate marketing on consumer purchase intention of Malt Beverage Brands in Asaba Metropolis.

1.4 Research Questions

The following questions have been prepared for the study:

What is the extent to which consumers are aware of the affiliate marketing strategy of Malt Beverage Brands in Asaba metropolis?

What affiliate marketing strategies trigger consumer purchase intention of Malt Beverage Brands in Asaba Metropolis?

What factors influence consumers' preferences for Malt Beverage Brands promoted through affiliate marketing?

What is the impact of affiliate marketing on consumer purchase intention of Malt Beverage Brands in Asaba Metropolis?

1.5  Research Hypotheses

H0: Affiliate marketing has no significant effect on consumer purchase intention for malt beverage brands in Asaba metropolis.

Ha: Affiliate marketing has a significant effect on consumer purchase intention for malt beverage brands in Asaba metropolis.

1.6  Significance of the Study

The study findings will help marketers and businesses develop more effective marketing strategies. Furthermore, consumers will become more aware of the influences shaping their purchase intentions, enabling them to make more informed choices. Additionally, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard the effect of affiliate marketing on consumer purchase intention for malt beverage brands in Asaba metropolis.

1.7 Scope of the study

The scope of this study is boarded on the effect of affiliate marketing on consumer purchase intention for malt beverage brands in Asaba metropolis. Geographically, the study will be delimited to residents of Asaba metropolis.

1.8 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

 1.9 Definition of Terms

Affiliate marketing: A performance-based marketing strategy where businesses reward affiliates (partners) for driving traffic or sales to their products or services through the affiliate's marketing efforts.

Purchase intention:  refers to a consumer's desire to purchase a product based on past experiences and information.

Consumer: An individual that purchases goods or services for personal use.