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Simpson & Mortimore (2015) “The influence of direct mail marketing on buyer purchasing decisions.” JRSBM: 1/1 pp119-142 Journal of Research Studies in Business & Management Vol. 1. August 2015 119 The influence of direct mail marketing on buyer purchasing decisions: A qualitative analysis of perceptions by age group. James Simpson Helen Mortimore Plymouth Business School, University of Plymouth, UK. ___________________________________________________________________________ Abstract With a continued suggestion of online replacing offline, this study has uncovered, through qualitative methods, a variety of benefits, perceptions and implications of direct mail on the overall intention to purchase. It identifies three key areas in which direct mail can impact the decision to purchase, as well as providing an analysis of the effect of age on the uncovered factors. It also provides insight in to the situations where it can be best applied. Finally, it draws a conclusion on the overall findings of this research, which support the continued use of direct mail as a future advertising method. Keywords Offline, Marketing, Direct Mail, Purchase Decision. __________________________________________________________________________ Introduction & Aims of Research With the rise of the Internet and growth of the online consumer, Internet advertisement has been an increasing source of information for consumers (Tsao and Sibley, 2004), with online spend at a record £91bn in 2013 (Rigby, 2013). Marketing overall can be defined as “The process by which companies create value in order to obtain greater value from the consumer in return’ (Kotler, 2010), as such it plays a crucial part in the success of an organization. Moreover, with a decrease in direct marketing spend between 2008-2011 (Ofcom, 2012) and an increase in online spend, the need for comparison of offline vs. online is clear (Edgecliffe-Johnson, 2012). With increased adoption of the Internet as a purchasing platform and the lack of current literature on the affect of Direct Mail on the purchase decision, the main objectives of this study were to answer the following key questions: Can direct mail marketing still influence the buyers purchasing decision in the 21st century? Establish how widely spread direct mail marketing is currently being used? Distinguish the perceived advantages and disadvantages of offline marketing (Direct Mail) from a consumer perspective Analyze if Age effects the adoption of Direct Mail as an advertising Medium? Understanding how has the Internet impacted the perceived benefits of Direct Mail? Each of the above objectives has been analyzed through a qualitative based approach, using interviews and focus groups as the main data collection methods. This study looks for depth of understanding as opposed to generalizable data, following an interpretivist approach, however this study provides some basic quantification through the manually coding of texts and themes. Literature review Various models have looked to provide a structure to marketing, most notably the popularization of McCarthy’s (1964) “Four P’s Model” by Phillip Kotler (1967). There model widely accepted as the tool kit for marketers

Transcript of The influence of direct mail marketing on buyer … · The influence of direct mail marketing on...

Simpson & Mortimore (2015) “The influence of direct mail marketing on buyer purchasing decisions.” JRSBM: 1/1 pp119-142

Journal of Research Studies in Business & Management Vol. 1. August 2015

119

The influence of direct mail marketing on buyer purchasing decisions: A

qualitative analysis of perceptions by age group.

James Simpson

Helen Mortimore

Plymouth Business School, University of Plymouth, UK.

___________________________________________________________________________

Abstract

With a continued suggestion of online replacing offline, this study has uncovered, through qualitative methods,

a variety of benefits, perceptions and implications of direct mail on the overall intention to purchase. It

identifies three key areas in which direct mail can impact the decision to purchase, as well as providing an

analysis of the effect of age on the uncovered factors. It also provides insight in to the situations where it can be

best applied. Finally, it draws a conclusion on the overall findings of this research, which support the continued

use of direct mail as a future advertising method.

Keywords

Offline, Marketing, Direct Mail, Purchase Decision.

__________________________________________________________________________

Introduction & Aims of Research

With the rise of the Internet and growth of the online consumer, Internet advertisement has been an increasing

source of information for consumers (Tsao and Sibley, 2004), with online spend at a record £91bn in 2013

(Rigby, 2013). Marketing overall can be defined as “The process by which companies create value in order to

obtain greater value from the consumer in return’ (Kotler, 2010), as such it plays a crucial part in the success of

an organization. Moreover, with a decrease in direct marketing spend between 2008-2011 (Ofcom, 2012) and an

increase in online spend, the need for comparison of offline vs. online is clear (Edgecliffe-Johnson, 2012). With

increased adoption of the Internet as a purchasing platform and the lack of current literature on the affect of

Direct Mail on the purchase decision, the main objectives of this study were to answer the following key

questions:

Can direct mail marketing still influence the buyers purchasing decision in the 21st century?

Establish how widely spread direct mail marketing is currently being used?

Distinguish the perceived advantages and disadvantages of offline marketing (Direct Mail) from a

consumer perspective

Analyze if Age effects the adoption of Direct Mail as an advertising Medium?

Understanding how has the Internet impacted the perceived benefits of Direct Mail?

Each of the above objectives has been analyzed through a qualitative based approach, using interviews and

focus groups as the main data collection methods. This study looks for depth of understanding as opposed to

generalizable data, following an interpretivist approach, however this study provides some basic quantification

through the manually coding of texts and themes.

Literature review

Various models have looked to provide a structure to marketing, most notably the popularization of McCarthy’s

(1964) “Four P’s Model” by Phillip Kotler (1967). There model widely accepted as the tool kit for marketers

08 Fall

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Journal of Research Studies in Business & Management Vol. 1. August 2015

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that includes, Product, price, place and promotion, with an 3 additional P’s added (People, Physical Evidence

and Processes) to accommodate for services (Booms & Bitner, 1981). This study will focus on the promotional

aspect of the marketing mix, due to its strong influence on the purchase decision of consumers. Kotler (1994)

advocates 4 main promotional tools, advertising, sales promotion, personal selling and public relations. Naik &

Peters (2009) add greater depth presenting, direct marketing, print media and radio, in their classification. This

study focuses on direct marketing, as it’s the format at greatest risk from online (Dutta-Bergmann, 2004).

Various academics providing examples of each, Kotler & Armstrong (1998) put forward catalogue-marketing,

kiosk marketing, marketing by mail and direct TV advertising as the main communication tools of direct

marketing. Naik and Peters (2009) provide examples of Television Advertisement as Promotional Channels and

Sponsorship. Allen (1997) list direct mail as catalogues and informative material, but state it must be addressed

for it to be classified as direct mail in Kotler and Armstrong (1998). Print media including magazines, flyers and

posters as there main advertising formats (Kotler, 1998).

With total offline advertising spend contributing £7.6Billion to the UK economy in 2013 and with digital

advertising increasing in uptake (PWC, 2014), There is a strong indication that Offline Marketing is having a

decreasing effect in the Marketing Mix. As such, the purpose of this study was to focus on direct marketing as a

future advertising tool. Direct marketing defined as “Any form of one-to-one communication with potential

customers. With the ultimate objective of effecting the sale of a particular good or service (Adapted from Allen,

1997:10), which indicates the structure for this study, that is to understand if direct mail can still effect the sale.

Allen (1997) identifies the components of the direct marketing as direct mail, direct response marketing,

telemarketing, mail order and direct selling. Berry (2001) further dissects each tool distinguishing Direct Mail as

“Personally addressed advertising, delivered through the post” (Berry, 2001 Pg. 7). Berry’s distinction is one

that will be carried through this research project, as it differentiates Direct Mail from “Junk Mail” – defined by

Zhang (2003) as any mail that is ‘Unsolicited’ and ‘Unwanted’, in both online and offline formats. Moreover,

Berry (2001) advocates the high usage of direct mail, providing a strong argument for its continued use,

accounting for 16% of total direct marketing expenditure (DMA, 2012).

Benefits of Offline Marketing/Purchase

With high usage, academia would suggest there are numerous benefits to purchasing products offline or in

home. Gillette (1970) examined the perceived convenience of in store and in home purchasing, finding In-

Home as the perceived more convenient method of purchase, Berkowitz et al (1979) strengthens this trend

further in their investigation of in home grocery shoppers, finding the main motivating factor behind in home

purchase is convenience. Darian (1987), Reynolds (1974) and Gillette (1970) contradict the above, all

highlighting that no higher purchases were made at home, which emphasizes the need for further research of the

benefit of convenience (Darian, 1987). Another benefit identified by Rosenberg & Hirschman (1980) and

Darian (1987) is a greater product assortment, as catalogues create a greater selection in comparison to in store

formats. In contrast Solomon & Kim (1994) note the inability to examine products as a potential limitation to

television/catalogue purchasing. Moschis & Moore (1982) construct a quantitative study, identifying improved

brand perceptions and increased intent to purchase as the main benefits of television advertising, however it

lacks the depth needed to understand perceptions fully, whilst Kaufman-Scarborough & Lindquist (2002)

advocate comfort and convenience, as the main motives to purchase at home.

Direct Mail

Research into the benefits of direct mail have been limited over the past decade, instead a greater focus on the

online benefits is evident across academia. With the rise of the online consumer, it has been widely touted that

the benefits of Offline Marketing far outweigh its costs (Dutta-Bergman, 2004). Berry (2001) broadly outlines

the advantages of offline but provides little indication of these advantages in practice.

Lariscy & Tinkham (1996) research into Direct Mail found a number of benefits in the context of political

campaigns 1) Direct mail increased the percentage of votes amongst the non- incumbents; 2) Direct mail created

greater targeting of consumers to grant them more competitive offerings. To counter the above, Akaah (1995)

research provides a contradictory view of Direct Mail, stating it as “Junk Mail” and invades consumer privacy,

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in their study on consumer attitudes, therefore a split amongst academia exists. Finally, Briggs & Borin’s

(2005), case specific Ford F-150 launch campaign provides evidence that magazine advertisement creates

significant return on investment in the case of Ford. Bergemann (2010) later agree with these findings, stating

Direct Mail allows for greater customer targeting. More recently Santana (2013) identifies that consumers

remember more information from Print media in comparison to online media. The above literature has exposed

various advantages to offline direct methods of advertising, however with much of the research conducted prior

to the Internet it opens the opportunity for up to date research of the perceived benefits, forming the structure for

one of the research objectives - Understanding how has the Internet impacted the perceived benefits of Direct

Mail?

Online Marketing

Literature surrounding online marketing is relatively new to the world of academia, as the Internet and e-

commerce have risen most notably in the past decade. Most broadly E-Marketing can be defined as: “The use of

electronic data and applications for planning and executing the conception, distribution and pricing of ideas,

goods and services to create exchanges that satisfy individual and organizational goals” (Strauss and Frost,

2001: 454), this proposes a much broader scope to online marketing than just promotion and looks to

incorporate all 4 elements of the promotional mix (Kotler, 1967). Shah (2001) narrows the breadth of E-

Marketing coining who the term “Internet Marketing”, establishing a direct link between the Internet and its

impact on the marketing function. Jones (2005) provides clarity to Internet marketing structure, suggesting four

tools, social media, website advertisement, search engines and email marketing. Social Media sites have seen

increased usage, Twitter with 500Million users (Twitter, 2015) and Facebook 1.23 Billion users worldwide

(Guardian, 2014). In the context of advertisement spend, UK Digital Ad spend grew 15% year on year to

£6.3Billion in 2013. With mobile spending now contributing £1 in every £6 of spend (PWC, 2014).

Benefits of Online-Marketing

A strong argument is that organizations substitute offline methods (Direct Mail; Print Media; Direct Calling)

with the use of online methods (Social Media; Websites; Email) (Klein and Ford, 2003). Most recent studies

focus on a comparison of alternatives, with strong suggestions that online will replace offline (Dutta-Bergman,

2004). Kiang (2000) research into the benefits of online marketing approach was conducted at a time when the

Internet will still in its infancy, academia presenting three advantages where the Internet can benefit an

organization - Communication, Transaction and Distribution. Communication advantages are highlighted as

improved interactivity between marketer and consumer and stronger relationship with customer (Peterson Et Al,

1997). Transaction benefits include improved visibility and a substantial reach with one single campaign.

Furthermore, online allows for easier customization and flexibility (Long, 1997). Distribution benefits

including, fewer intermediaries needed to distribute the same content online. E.G no requirement for a printers

or logistics firm to distribute catalogues, resulting in lower costs (Edwards, 1998). Later research by Pinheiro

(2013) adds the further benefits to an organization as increasing knowledge, easier measurement of

effectiveness and is a user- friendly tool. Bayo-Moriones (2007) identifies the advantages from a consumer

perspective as product diversity, competitive pricing and convenience as the main drivers for information

technology.

Direct Marketing as a Future Marketing Medium

Since the rise of the Internet there has been an increased literature in comparing offline and online marketing.

Jones et al (2005) takes a psychological approach to research, contrasting the printed page to the computer

screen, focusing on memory as opposed to intent to purchase, which puts forward the theme that paper based

advertisement is more effective for long term memory, however it lacks incorporation of the purchase decision

in the research. Danaher (2011) work focuses more on perceptions in his literature Comparing perceptions of

marketing communication channels", include a basis of opinion on the differential between various marketing

tools. Direct marketing scoring second highest on the basis of purchase intention, providing strong evidence

towards direct marketing as a future medium. For this study, this evidence would suggest hat even in the wake

of the Internet, consumers are still actively adopting direct marketing as there preferred medium. However,

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being conducted in Australia, this research has limited applications to the UK consumer, as culture is a huge

determinant in consumer choice (Yakup, 2011). Danaher (2011) work will form the basis for this study, but will

uncover more clarity to direct mailing as a marketing tool.

Leeflang Et Al (2000) counters the above, arguing that direct mail does not have a place in the future, their

research highlighting a considerable right distribution skew, indicating a considerable proportion of the

population having no intention to purchase through the mail. However, later research from Leeflang Et Al

(2013) counters their previous opinion to identify a direct mail-prone consumer, establishing a link between

socio-economic group and preferences of marketing communications. Through a quantitative testing of

hypothesis they find 1) Younger people are more likely to be direct mail prone and 2) Younger individuals are

more likely to purchase through direct mail, which contradicts the view of Barnes & Peters (1982) and Greco

(2011) that highlight 60-74 as the main users of direct mail. The limitation of the research is the location of the

sample, being a Dutch study; its applications are limited to the UK population. Moreover, Leeflang Et Al (2000;

2013) fail to define age categories, only using the subjective terms ‘Young’ and ‘Old’. Therefore, based on the

limitations and trends of previous research, the objective will be to obtain depth and understanding of the UK

consumer.

The Buying Process

As Kotler (2010) puts forward in his definition of marketing “The process by which companies create value in

order to obtain greater value from the consumer in return’, it can be suggested that marketing is a ‘process’

which the consumer follows. Overall the decision making process, can be defined as a broad organized set of

structures that reflect the basic process of decision making from certain viewpoints and within certain contexts

(Walters, 1972; 42 Cited In Erasmus, 2001; 84). Various models being constructed to arrive at a generalized

process for the decision making process (Erasmus et al, 2001).

The buying process is an area of research that has continually been of interest to researchers. The most widely

used models of consumer behaviour evolved during the 1960’s and 70’s, as academics started to research theory

as opposed to marketers (Erasmus et al, 2001), due to the lack of consumer theory around this time. Howard

(1969) was first to propose a theory of consumer purchase decision, with their model of consumer purchase

theory (Howard, 1989; Du Plesis et al, 1991). Further models from Howard & Sheth (1969), Engel, Blackwell

& Miniard (1968) and Andreason (1965) form the basis of literature today. The work of Simon (1959) must also

be noted, his three-stage model setting the foundations for newer research. Although explanations of the buying

process may vary, five main stages to the process are accepted across all models (Mitchell and Boustani, 1994;

Lee, 2005).

More recently, Kotler et al (1990) proposed the black box model, a theory that identifies a range of cultural,

social, personal and psychological characteristics that affect the decision to purchase. Each of the models

advocate the idea that stimuli or factors affect the decision to purchase, this literature review will focus on two

of the most predominant and developed models since the work of Simon (1959), the Theory of Buyer Behaviour

(Howard & Sheth’s, 1969) and Model of Consumer Decision (Engel-Blackwell-Miniard, 1990).

Theory of Buyer Behaviour

Howard & Sheth (1969) proposed a 4-stage model to the consumer decision process. Inputs, perceptual

constructs, learning constructs and outputs, their model being the first to propose an effect of Stimuli on the

decision to purchase. Inputs are the first stage at which stimuli affect the consumer, categorising three forms of

input stimuli:

Symbolic Stimuli: Are the verbal and non-verbal characteristics of the product the consumer intends to

purchase.

Significative Stimuli: Are the physical characteristics of the product and information provided on the

product, by marketers.

Social Stimuli: Influences that come from the individual’s social environment, such as information

from friends and family.

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Each stimulus having an impact on the way consumers decide to purchase (Batra, 2009). Sheth (1975; 44) later

emphasises the importance of inputs on the decision making process, citing “The availability of information” as

a primary factor in the decision making process With information playing a crucial part in the purchase decision

process, it is of particular interest for marketers looking to increase product uptake. As such, identification of the

affect of information via direct mail will be a key objective of this research project. With this model

contributing concepts on how marketers can influence the decision.

Constructs are separated into two forms, perceptual and learning constructs, perceptual constructs are the factors

which deal with the psychological constructs affecting the consumer whilst contemplating their decision, based

on the inputs provided. Learning constructs include information about competing brands, preferences and

buying intentions (Sheth, 1975). The final stage of output, involves the actual purchase of the intended item,

after evaluation of all alternatives based on the inputs provided, Sheth (1969). The incorporation of social,

psychological and marketing influences is commented as a benefit of this model (Bray, 2008; Loudon & Della-

Bitta 1993). Although this model provides the concept that marketing effects the decision, it fails to identify the

what, how and when marketing has an impact. A limitation this research aims to improve, identifying the ‘how’

and ‘what’ influences purchase. Further critique by Newman (1972) questions the validity of the model, due to

its lack of empirical data, instead using scientific methods to test hypothesis (Haines 1970, Bray 2008 & Hunt

1972). Horton (1984) counters the above argument, suggesting the model is comprehensive model, as a result of

empirical research.

Consumer Decision Model

Engel-Blackwell-Miniard first proposed their theory of Consumer Decision in (1990) in their book titled

consumer behaviour. Their model as with the Theory Of Buyer Behaviour (1990) worked on a fundamental

stage structure, adding a fifth stage “post evaluation” stage to complete the Consumer Decision Model. The post

evaluation stage plays a crucial role for marketers, as it’s at this point where consumers evaluate the received

information for future purchases (Schiffman & Kanuk, 1994). Further to the post information evaluation,

marketers can also effect the decision through ‘Stimuli” during the early evaluation stages (Lindholm, 2008).

Engel-Blackwell-Miniard (1990) differentiates information sources in two categories I) Internal ii) External.

Engel-Blackwell-Miniard (1990) differentiate the internal sources information as past experiences, word of

mouth and memory, in comparison external sources of information can come from various sources, including

leaflets, mail, online and other information sources. Marketers have little immediate influence on the pre-

existing past internal information, due to this already being present in the consumers mind set, the way in which

they can influence the purchase decision is through the 4P’s marketing mix (Product, Price, Place and

Promotion). Promotion can be defined as the activities that an organisation performs in order to connect and

transfer information with potential and actual customers (Kotler, 2002). With advertisement expenditure

approximately £21.5billion in 2012 (Oliver & Ohlbaum Associates Ltd, 2013), it is key for organisations to

fully understand the perceptions of each.

Amongst academics there is an increasing argument that the above models provide a generalised view of the

process (Erasmus et al, 2001). Hoyer (1984) and Dí Astous et al (1989) proposed that the models of Sheth

(1969) and Engel (1968) ignore the influence of purchase dimensions such as the importance of purchase,

suggesting the greater the importance of the purchase, the more complex the decision process (Du Plessis &

Rousseau, 1999). Cox et al (1983) and Erasmus et al (2001) advocate Hoyer’s (1984) concept of to idealise, in

that they suggest consumers follow exact processes, Cox and Erasmus counter this ideology suggesting

numerous other factors influence the decision. Olshavsky and Granbois (1979) and John & Whitney (1982)

suggest that consumer models could be simplified much further. Arguing that the average consumer passes

through the decision process far quicker than suggested, providing an overcomplicated version of the process

(Erasmus et al, 2001).

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How Marketing (Promotion) Effects the Purchase Decision

Howard & Sheth (1969) & Engel-Blackwell-Miniard (1990) both agree that information plays a crucial part in

the consumer decision process, classifying information as ‘Stimuli. However these models lack explanation on

how the Marketer can directly effect the purchase decision. Lariscy et al (1995) work on these limitations,

finding) Increased direct mail distribution enhances the decision to vote 2) Using multimedia campaign

outperforms that of a single media campaign. Kijewski et al (1993) research contradicts this view finding 1)

‘direct impact of offering information on buying intention was negative’, however they are first to note the

validity issues in their research. Their variables “Offering Information” and “Company Reputation” not clearly

defined from the offset. Later studies by Weng et al (2013) research broadly evidences that consumer buyer

behaviour is impacted by various promotional activities, but fails to identify which advertisement technique is

preferred. Therefore, further research is needed to distinguish the influence marketing can have on the consumer

in an age of increased Internet usage.

Perceptions of Direct Mail

Research on perceptions and attitudes towards promotional methods have increased in momentum, as academics

begin to discover the impact of perceptions on motive to purchase (Lutz, 1985). Various studies have attempted

to measure the perceptions of attitudes amongst students (Sandage & Leckenby, 1980; Meuhling, 1987)

comparing them on a cross-cultural basis (Mehta, 1995). Akhter & Durvasula (1991) typically identify two

types of perceptions to direct mail, favourable and unfavourable. This rather broad classification of perceptions

is too general to benefit marketing professionals. Early work by Korgaonkar (1984) found in his study of older

individuals that consumer perceived in home shopping to be more convenient, furthermore identifying the price

conscious consumer as a higher user of direct mail. Finally Akaah et al (1995) suggests that any perception of

direct mail is dependent on the shopping orientation of the consumer. For example, consumers that dislike

receiving mail are more likely to perceive Direct Mail as “Junk Mail” (Pg. 217). This project adopts an

interpretivist stance, building on the limitations of depth in previous studies. Finally, analysing various

perceived benefits of promotional methods will contribute highly to organisations, a key objective of this study.

How Can Perceptions Affect The Decision To Purchase?

Perceptions are areas that have been researched across a variety of industries. Shukla (2012) investigated the

“The influence of value perceptions on luxury purchase intentions” with an analysis of consumers from four

countries (USA, UK, India and Malaysia). Identifying a positive correlation between favourable perceptions and

the intent to purchase, however finding distinct differences amongst nationalities. This view counters the view

of Hoftstede et al (1999) who suggests that perceptions are homogenous across nations and populations. From

an advertising perspective, Wells et al (2011) analysis of website perceptions on perceived quality further found

that favourable perceptions, improved the perceived quality of products. Chen et al (1998) research has the

greatest application to this study, finding that improved perceptions increased the intent to purchase amongst

individuals. Moreover, that promotion acceptance is improved when perceptions are favourable. As such, it can

be deducted that improved perceptions of marketing techniques will 1) improve the acceptance of that

advertisement and 2) Increase the intent to purchase.

Effect of Age on Media Preferences

Earlier studies of in home shopping preference have regularly shown that younger consumers have a greater

preference for purchases in home or directly (Greco and Fields, 2011). Gillet (1976) identifies no relationship

between age, transportation method or presence of young children, in his study of in home shoppers. Settle et al

(1994), later discovering similar results in there survey of consumer perceptions, significantly, “The total image

ratings for the other four mail/ phone order shopping media did not differ although the profiles did vary

slightly”. Darian (1987) study of in home shopper contradicts the above patterns finding 1) “those over 65 years

are less likely to shop via direct mail than those under 50” and 2) “Younger individuals are more likely to shop

at home”. Older studies have focused on primarily on the purchase behavior of women (Darian 1987;

Cunningham 1973 and Gillet 1973), as such a limiting factor in their overall application to the population.

Another limiting assumption of this research is its Age, as the Internet wasn’t a factor that could effect purchase

decision during the 1980’s.

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A more recent study Bachman Et Al (2010) research looked at the effects of age on media consumption within a

political voting environment. This study highlights a clear distinction between the preferences of offline media

for older participants in comparison to their younger individuals. Proposing preference for offline advertising

increases with age. These findings forming the basis of Hypothesis 1 of intended research – “As age increases

favourable perceptions for Direct Mail will increase”. This literature is limited in its applications to predict

Direct Mail it uses newspaper and television as the two media formats, although provides some suggestion

towards offline vs. online preferences. To increase its applicability, a wider range of media sources such as

direct mail, posters, catalogues and leaflets would have to be considered to fully understand the correlation

identified by Bachman Et Al (2010). Holt Et Al (2013) research achieves this to an extent, establishing

relationships amongst news media, by incorporating the effects of social media within a political participation

environment. Underlining a direct correlation between age and media platform, with social media becoming an

increasing. As age increased the need for offline media increased, social media usage decreasing in older age

groups. The strong inconsistency amongst academia provided the justification for the analysis of age in this

study.

Justification for Study

From the reviewed literature, there are clear benefits of Offline marketing and in particular Direct Mail.

However, research has been limited over the past 10 years Berry (2001), Akaar (1995) and Lariscy Et Al (1996)

providing to be the most significant studies in the past 20 years. In comparison numerous more recent studies

(Pinheiro, 2013; Bayo-Moriones, 2007; Kiang 2000) have been conducted on the perceived benefits of Online

Communication methods. This lack of modern research opens the opportunity for further research for the effects

of Direct Marketing in the 21st century. Moreover, from analyzing literature it would suggest marketing could

influence the buying decision, but lacks the discovery of “How” an objective this research will determine.

Research Methodology

Research has been defined as a “Systematic Investigation, designed to develop or contribute to generalized

knowledge” (Burns, 1997; Mackenzie, 2006). The process of research involves intellectualising an identified

problem, setting the research question, collecting data and analysing the collected data (Bogdan and Taylor,

1975). Denzin and Lincoln, (1994) identify a 5-stage process when selecting the method of research design. To

start the researcher must identify whether a quantitative or qualitative approach is applicable to research

objectives. Second is to identify the research paradigm, with research paradigm shaping the intent and

expectations of the research (Mackenzie, 2006). Third is to link the chosen paradigm to the research, through

construction of the research methodology. Guba and Lincoln’s (1989, 2005) categorize paradigms as the “views

that reflect the researchers assumptions about reality and methodology”. The final two stages involving

selection of data collection method and choice of analysis method, Denzin and Lincoln (1994) 5-stage process

providing the structure for this section.

Research Philosophy

Various suggestions for a definition of paradigm have been proposed. Kuhn (1996) terms the concept as ‘an

entire constellation of, values, techniques and beliefs ’ (Kuhn, 1996, p.175). In contrast Guba (1990, p. 17)

termed the concept as ‘World Views’ that are ‘A basic set of beliefs that guide research action’ later adding

ontologically and epistemologically consideration in there definition (Guba and Lincoln, 1994:105). Overall, it

can be suggesting that different philosophical assumptions lead to different research and methodological design

(Mertens, 2012). Amongst social sciences three general ‘World Views” or “Philosophical approaches” exist

Povisitist, Constructivist/Interpretivist and Pragmatist (Creswell, 1990). Lincoln and Guba (2000) distinguishing

each of the above paradigms on the basis of three central questions (ontological, epistemological and

methodological), with every paradigm based upon its own ontological and epistemological ideals (Scotland,

2012). Broadly Mack (2010) defines a positivist approach as the scientific paradigm (Pg.6), with the purpose of

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statistically representing generalized findings. The Interpretivist approach also referred to as ‘Anti Posivitist’

due to it being developed in reaction to the posivitist approach (Mack, 2010).

Ontology

Ontology can be defined as the study of being (Crotty, 1998, p. 10). Ontological positions are based on what

formulates reality, Scotland (2012) defining it as the “What Is” of the research paradigm.

The positivist ontology argues reality as being “out in the world” to be discovered using constructive

methodologies (Bassey, 1995 & Tuli, 2010). A positivist perspective of ontology therefore is that of realism

(Scotland, 2012). Positivists consequently argue that reality is not expressed by our senses, but by factual

statements (Mutch, 2005). As such, the world exists by quantifiable fact and researchers can use a quantitative

approach to discover it (Cohen, et al, 2007). Creswell (2003; 14) suggesting experiments and surveys

questionnaires and structured interviews, as the methods to obtain generalizable date from the population

(Babble, 1990).

The Interpretivist ontology counters the view that reality is simple enough to observe through accepted rules,

irrespective of human interaction (Tuli, 2010 & Saunders, et al 2012). An interpretivists approach argues

relativism, the view that reality is individual and differs across populations (Guba & Lincoln, 1994). Opposing

positivists, in that reality is constructed by our senses, claiming without perceptions the world would be

meaningless (Scotland, 2012). Reality is thus a human construct (Mutch, 2005). The role of an interpretivist

researcher is consequently “Understanding and demystifying social reality through understanding” Cohen et al

(2007, p. 19). This suggests that reality varies on an individual level, with qualitative methods providing the

depth needed to understand separable differences (Tuli, 2010). A pragmatist approach would argue the

researcher is free from the forced choice of post positivism and constructivism as a chosen research paradigm

(Creswell & Plano Clark, 2007, p. 27 & Feilzer, 2010), researchers aren’t prisoners of a particular method

(Robson, 1993, p. 291). With pragmatism offering an alternative ‘World View’ to positivism and interprivitism,

focusing on finding the ‘truth’, whether that requires a Qualitative or Quantitative approach (Dewey, 1925).

Epistemology

Epistemology as defined by Crotty (1998, Pg. 3-10) is the study of ‘What know and how we know it’. An

interpretivist epistemological therefore advocates that reality is relative (Hudson and Ozanne, 1988) and

knowledge is socially constructed and perceived (Berger and Luckman, 1967, p. 3). Their research aims for less

rigidity, through the adoption of flexible research structures (Carson et al., 2001), to fully reconcile the

perceptions of reality. Therefore, the objective of an interpretivist researcher is to capture report and interpret

data to identify relevant perceptions, views and attitudes of the population (Neuman, 2000 & Hudson and

Ozanne, 1988). In comparison, positivist’s dispute there is a single objective reality that exists in society for a

researcher to discover, leaning towards more rigid structures, in order to statistically generalize a single reality

(Easterby-Smith et al, 2012).

Methodological Assumptions

Methodological assumptions shape the way the researcher goes about finding out what is known (Guba and

Lincoln, 1994, p.108). Within social sciences there are strong arguments for both Quantative and Qualitative

tools. Quantitative data collection methods form the basis of positivist research paradigm (Travers, 2001),

obtaining quantifiable data to test hypothesis. Qualitative research is usually inductive, in that allows researchers

to gain broader, less specific generalisations of the population, instead understanding is deeply described (Cohen

et al., 2007; Farzanfar, 2005) supporting an Interpretivist approach, however it can be used to test a hypothesis

in a positivist paradigm of inquiry (Babbie, 2001).

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Research Approach

This research will undertake an interpretivist approach, as this is what shapes reality (Robson, 2002). As this

research looks to understand the attitudes, ideas, motives and purchase intentions, a qualitative research

approach best suiting the objectives of this research (Kitzinger, 1995).

An interpretive methodology aims to gain new understanding from an individual’s perspective, through

investigation of interactions, perceptions and experiences amongst individuals, as well as the historical context

that people occupy (Robson, 2002; Creswell, 2009, p. 8; Tuli, 2010). Thus, the purpose of this study is to

understand ‘new’ and ‘undiscovered’ perceptions. In contrast the positivist approach argues that it is ‘Reality’ is

already pre determined and therefore cannot be shaped. In addition, Bryman (2012) favours the use of

qualitative methods in an interpretivist approach, as it gains a more conclusive understanding of individual’s

behaviour, rejecting a quantitative approach due to its failure to provide explanations to human behaviour.

Moreover, a preference for qualitative methods is made when examining real life contexts and where claimed

and actual attitudes vary (Belk, et al 2005; Sinkovics, Penz, & Ghauri, 2005; Sykes, 1990). Sample size also

differs between approaches, the positivist approach employing larger samples sizes in order to achieve

generalizability (Gray, 2014), interpretivists adopting smaller sample sizes, to achieve more in-depth data

(Gerring, 2007).

The split between positivist and Interpretivist approaches in the field of consumer research has been of strong

debate. Hunt (1991) explored the idea that Positivist approaches are favoured in the field of consumer research,

concluding that no favoured approach dominated the field. Shankar & Patterson (2001) advocating Hunt’s

(1991) research, stating, “The dominant position within consumer research has been, and still is, occupied by

positivism and its variants” (Pg. 482). They propose an emerging trend towards a more diverse mix of

paradigms in the future. Chung & Alagaratnam (2001) acknowledging Shanker & Patterson’s (2001) work and

studying the patterns of paradigms in Marketing Research, explaining the reason for a scarcity of qualitative

marketing research due to the ‘lack of managerial applications’ (Calder, 1977).

This research follows Bryman (2012), as it aims to explain how direct marketing can influence the purchase

decision. Qualitative research typically generates more descriptive data, useful in obtaining more individual and

in depth data regarding people’s opinions on a particular subject (Dey, 1993). Due to the lack of opinions based

research on direct marketing in the 21st century are relatively unknown, a qualitative approach will generate the

depth needed to establish current opinions (Kitzinger, 2005). Focus groups and Semi-Structured Interviews will

be the tools used for data collection.

Methodology

Focus groups originate as a research method with Bogardus (1925) who adopted them as a research method in

his work with the social sciences. A primary objective of focus groups is “Obtaining a range of perspectives on

the same topic, in participants own words” Litosseliti (2003:18). Kitzinger (2005) a well-established academic

within the research world suggests focus groups provide the tools to examine individuals “experiences, points of

view and concerns (Liamputtong 2011). Zeithaml (1988) study of ‘Consumer Perceptions’ provides a strong

argument for the use of focus groups as a method to identify perceptions.

Various academic moderators have suggested optimum focus group sizes from 5-6 (Green & Hart, 1999), 6-8

(Krueger, 1998), 6-12 (Lindoff, 2002) and Brown (1999) suggesting homogeneity is a factor effecting focus

group size. The aim was to achieve twelve participants; however eight was achieved due to contributors

removing themselves from the research See Table 1).

A moderated approach was adopted within the focus group, the main purpose of the moderator being to keep

discussions on track and provide lively discussions (American Statistical Association, 1998), and the researcher

acting as the moderator in this study.

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Focus Group One Focus Group Two

Participant Number 9 11

Age Range 25-34 35-45

Location Cornwall Council Offices Wadebridge School

Duration 55Minutes 61 Minutes

Recorded ✓ ✓

Moderated ✓ ✓

Table 1: Focus Group Structure

Qualitative Research – Interviews

Further to focus groups, semi - structured interviews were used to access different aspects of peoples opinion

(Michell, 1999), interviews also provide the participants with freedom to express their viewpoint, as well as

providing the interviewer with comparable qualitative data (Bernard, 1988). Moreover, participants were asked

a set of pre-constructed questions to provoke more common themes, allowing for basic quantifiable of data

(Bryman and Bell, 2011).

Boyce and Neale (2006:248) suggest that in an interview guide there should be no more than 15 main questions

to guide the interview. Probing and prompting skills helping the researcher to clarify what participants say and

get more details on specific issues thus eliciting the richest data (Lofland, 1971) and reduce the chance of

participants moving off the designated research topic (Morgan, 1988).

Hoepfl (1997) and Patton (1990) identify 3 interview formats 1) informal interviews 2) semi-structured

interviews 3) structured formal interviews. A semi-structured format was used opposed to a structured

interview, due to its increased flexibility, allowing the researcher to gain more elaborate information (Gill,

2009). Semi-structured interviews also allowed the research objective to be met, with perceptions generally

much deeper than data collection in a quantitative based approach.

Interviews took place based on the individual requirements, with the time and location of interview being most

suitable for each participant (Gill, 2008). A digital recorder was used to ensure no information was missed and

later used for transcription. Interview length ranged dependent on the responsiveness of each individual, no

strict time scale was ensuring full depth of response (See Table 2).

25-34 Age Range 35-45 Age Range

Interview Numbers 6 5

Location Home, Work & Social Settings Home, Work & Social Settings

Duration 35-55 Minutes 45-57 Minutes

Recorded ✓ ✓

Transcribed ✓ ✓

Table 2: Interview Structure

Selecting Participants

Participants for interviews were selected using purposive sampling, selecting participants on the basis of the

requirements for the research project (Miles & Huberman, 1984). Participants where random in most aspects

apart from age, familiarity amongst individuals was minimised to reduce the influence from acquaintances

(Barnett, 2002). Due to early struggles in coordinating individuals from various locations to participate in a

focus group, a snow balling approach was used to focus group sampling. In Snowball sampling participants are

recruited and then asked to help with the recruit individuals who would be interested in participating (Ellis,

1993), selecting key advocators of the study to convince any potential doubters to partake.

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Ethical Considerations

Streubert and Carpenter (1993:33), highlight a set of three main ethical considerations that must be considered

when following a qualitative approach. The first consideration is autonomy, which is the right for participants to

voluntary participate or remove themselves from the study (Mathison, 1998). Participants in this study where

informed, involvement in the study was completely voluntary and omission from the study could be taken at any

point during the interview/focus group. Secondly, Struebert and Carpenter (1999) highlight the importance of

continued information with participants due to the changing nature of qualitative research. Prior to focus groups

and interviews commenced a full briefing and signed consent was obtained from participants, informing them of

the objectives and how involvement contributed to the study. Additionally, the aims and objectives of the study

were presented verbally to the individuals and further clarifications were made when necessary. Struebert and

Carpenter (1999) note principles of beneficence and justice as two final considerations, arguing complete

anonymity is impossible within qualitative research. Confidentiality was insured through the following

procedures 1) No personal information was obtained from participants; details omitted from the transcription

process and referred to as ‘Interviewee 1’ etc. 2) Interview recordings were only used for the purpose of

transcription and this data was treated accordingly in line with Plymouth University procedures. 3) After

transcription and analysis recordings where then deleted. Moreover, a full debriefing followed interviews and

focus groups, where questions or queries could be answered.

Analysis Method

Transcription is the process of translating of sound/image into a text format (Duranti, 2007). Transcription in its

nature is has to be selective due to the impossibility of recording all features of talk and interactions from

recordings (Davidson, 2009). Och’s (1979) proposes, “A more useful transcript is a selective one” (Pg. 44).

Both interviews and focused groups were transcribed and analysis of each transcribe took a grounded theory

coding approach. The process of coding involves identifying themes through “reading and re-reading of the

data” (Rice & Ezzy, 1999, p. 258 and Federay Et Al, 2006). Coding as a mechanism is used to reduce the

quantity of data (Huberman and Miles, 1994) and understand the meaning of the data (Bryman and Bell, 2007).

However, codes can do much more than just fragment and retrieve elements of research text (Strauss and Corbin

1990; Coffey and Atkinson, 1996). Data was first transcribed into a word format from recordings and then

processed using Nvivo software. Bryman and Bell (2007) identify Coffey and Atkinson (1996) three levels of

coding namely basic, awareness and analytical codes; Crabtree and Miller (1999) recommend ‘template’

approach to coding (Federay Et Al, 2006) and Boyatzis (1998) this process involves identifying important

moments and coding it prior to interpretation. This research used a mixture of Crabtree and Miller (1999),

Coffey and Atkinson (1996) and Boyatzis, (1998), using created a coding structure. The template of codes

allowed for a clearer analysis of the identified code (Fereday et al, 2006). To gain greater recognition from

positivist supporters coding undertook basic quantification, as with the work of Hardy (2001) and Bryman and

Bell (2011) simplistic code counting will be applied to the observed codes, using frequency occurred in

population as the main statistical identifier.

Findings & Discussion

The purpose of this chapter is to analyse the key findings in each section, then present a discussion that relates

the findings of this research to literature.

How Is Direct Marketing Defined & Used?

We can first gain an understanding of the perceptions of Direct Mail, by analysing how Direct Mail is defined.

Understanding how people define direct marketing gives an early indication of consumer perceptions.

I5: “direct marketing is the process of providing targeted information to me, through the Mail and Email”

FC2: “Direct Marketing is directed advertising technique to encourage purchase“.

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In their definitions of direct marketing (I5 & FC2), participants commonly referred to the concepts of 'targeting'

and 'purchase”, in addition to the high frequency of respondents highlighting the key themes of “purchase” and

“targeted” provides two main suggestions. Firstly, the identification of “Purchase” as a main theme across

definitions provides an indication that consumers view direct mail as a medium that does affect purchase.

Secondly, “Targeted” as Lariscy et al (1996) note is a key advantage of direct mail, suggesting that the Internet

has not impacted the benefits of direct mail.

What Attracts You To Marketing?

As well as understanding the factors that influence the decision to purchase, further value is placed on

understanding the features that attract individuals to a marketing medium. The surprising result of this

discussion is the importance of preconceptions in a consumer’s uptake of a certain advertising medium.

Amongst respondents both the preconceptions of brand and the opinion of marketing tools highlighted occurred

most often.

FG1: “brand image has the biggest effect for me… if I receive marketing t from Apple, I immediately

favour that marketing”

FG2: “How marketing is administer is important, Junk Emails and Spam Flyers do not attract me”

From the above (FG1 & FG2) and further responses it can be noted that “Preconceptions” of brand and

marketing tools play a role in the overall attraction to marketing. As Kotler (2010) identifies a positive view of

the marketing mix will increase the overall intent to purchase, this research would suggest that if favourable

perceptions of direct mail exist, the sale of the promoted product increase. In light of the discovery of the

importance of preconceptions in the purchase decision, the following chapters will seek to uncover perceptions

of Direct Mail are favourable.

Perceived Advantages of Direct Mail

Trust

One of key findings of this study is the identification of the “Trust” element in the purchase decision and how

direct mail contributes to this, being a new benefit previously not identified by academia. A main objective of

this research was to identify “How direct marketing can influence the decision to purchase in the 21st century”

the proceeding discussion provides depth of evidence towards this. To identify the influence of the purchase

decision, perceived benefits would first need to be identified, Chen et al (1998) highlights the impact of positive

perceptions on increased adoption of advertising mediums. Within the sample “Trust” was identified the second

highest perceived benefits of direct mail, identifying an average frequency of 50% amongst all participants, 40%

amongst 25-34 year olds and 59% in 35-45 age category (See Table 3).

Age

Group

Advantage Frequency Age Group Advantage Frequency

25-34

Convenience 62%

35-45

Trust 59%

Trust 40% Convenience 48%

Personal 25% Reminder 30%

Reminder >5% Personal 30%

Information Rich >5% Information Rich 25%

Table 3 – “Comparison of Perceived Advantages Of Direct Mail”

Furthermore, the importance of trust is not limited to interviewees in 35-45 age ranges as highlighted above.

Interviewee numbers four in the 25-35-age range highlighting a lack of confidence online.

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I4: “Products mis-advertised through fraudulent websites fail to live up to expectations, therefore a brand I can

trust improves the repeat purchase of that brand”

The use of “Fraudulent” and “Mis-Advertised” indicates a possible negative prior experience with the Internet

as a purchase platform. This trend is uncovered further when a variety of sub-questions where used in order to

provoke depth in response, “Do you trust direct mail?” and if so “Why Do You Trust Direct Mail?” where used

to uncover greater depth. Of the responses, again Interviewee three and eight provided the most valuable

responses.

I3:“The Internet is becoming in-secure, which increasingly encourages me to purchase through more offline

other formats”

I8:“Content on paper is physical and costly to distribute, being less likely to be dishonest. Online people create

scams and defraud with greater ease”

Across both respondents a clear worry of “insecurity”, “fraud” and “scamming” is evident across both sample

sets. Signifying a lack of unity towards agreeing with the work of Pinheoro (2014) who highlights “Security” as

a key benefit of online purchasing. However, in the respondents who did not highlight “Trust as a perceived

advantage (I2, I5, I7, I10), the sub-question “Do you not trust Direct Mail? Was generated to know the reasons

why. The most valuable response was from Interviewee 10:

I10: “I trust Direct Mail, but I do not receive enough of it to value it as an advertising format anymore”

This implies that even for individuals who did not directly identify “Trust” as a perceived benefit, the attribute is

still a part of their overall perceptions of Direct Mail. Moreover, this early indicator provides strong evidence in

answering the main objective of this research “Can direct mail marketing still influence the buyers purchasing

decision in the 21st century?” providing early signals that direct mail is perceived in a favourable manner by

both age groups. Amongst focus group participation, 35-45’s coincided with that of interviewees also citing

“Trust” in their perceptions of Direct Mail.

FG2: “Direct Mail is trustworthy in the way it is distributed and my previous experiences of it. I haven’t

purchased a product or be mislead through direct mail campaigns”

The responses above showing clear correlation to responses found in prior interviews, further impacting the

overall importance of trust in this age group. Conversely, participants in Focus Group 1 (25-35) did not

highlight “Trust” to a great extent, occurring only 5 times through the duration of the Focus Group. Therefore

the depth of trend has smaller implications for the suggested age range.

Convenience

With increased online usage there has been greater suggestion that online services will replace the need for

offline (Dutta-Bergman, 2004). This suggestion strongly backed due to the high number of benefits online offers

including; Interactivity (Kiang, 2000 & Peterson et al 1997), Convenience (Bayo-Moriones, 2007),

Customization and flexibility (Long, 1997). As such, due to the high number of benefits and increased usage it

is clear why there are increasing numbers of advocates of Dutta-Bergman’s (2004) work. Findings from this

research would tend to disagree with the above suggestion and present new insight into consumer opinions. As

table 1 underlines

I4: “Being directly posted on me it saves the need to search for information, I do not have to search online or

visit the store”

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FG2: “As it arrives on my doorstep, it reduces the need for me to search, improving the overall convenience”

Moreover this lack of agreement with previous literature is further strengthened by later responses by the

respondents cited above. When questioned directly “What are the benefits of online advertising?” a scarcity in

the “Convenience” code adds greater depth to the above-mentioned themes. Of the respondents who did not

highlight convenience as a benefit of online, 45% of 25-35 instead highlighted convenience as an offline benefit

and 35% in 35-45 age groups, with some respondents openly stating which side they take.

The implication of the above findings add greater clarity in answering the research object “Can direct mail

marketing still influence the buyers purchasing decision in the 21st century?” Within two scenarios, both sample

sets (25-35 & 35-45) advocating clear advantages over that of the online alternatives. That would critically

demonstrate a place for Direct Mail in the 21st century.

Reminding Effect

One additional highlight of this research is the recognition from the sample of the “Reminder” effect that direct

mail offers. Although not recognised in a high frequency <5% amongst 25-34 year olds, the high presence the

reminder theme amongst 35-45 year olds is of greater interest.

FG2: “As direct mail is a physical advertising format as opposed to on screen it is continuously reminding me

of that product/service. As I keep picking that up piece of mail up and re reading it”

FG2: “When I receive mail or advertisement, it is placed in the family basket of mail, as such other family

members have the opportunity to view it at there convenience, moreover it allows me to re- read the information

at a later date”

The interesting points to draw from the responses above, firstly is the idea that advertisement is viewed more

than once, the concept of “Re-reading” is evident in both the above, a concept originally coined by Bergemann

(2010). Response No.2 gives greater value to overall research project, as it presents an effect previously not

identified. The idea that “Others have the opportunity to view”, is a suggestion previously un-identified in

literature, but is an extremely strong potential benefit to marketers. Due to the increased reach a singular

marketing campaign can have, improving the availability of information and overall the likelihood of purchase

(Howard & Sheth, 1969).

What Effects The Decision To Purchase?

By understanding what effects purchase, it will clearly identify the factors in which marketing can contribute

towards. As such, it will assist in answering the question if Direct Mail can exist despite the rise of the Internet.

Responses to the questions “What attracts you to marketing?” and “What puts you off from marketing?” where

mixed and highly varied. Individuals aged 25-34 provoked responses focus around the central idea of content,

the themes of “Colour”, “Images”, “Convenience”, “Information” and “Trust” occurring at the highest

frequency. In comparison 35-45 concentrated on the process itself suggesting ‘Honesty’, ‘Convenience’,

‘Information’, ‘Trust’ and ‘Opinions’ as the main marketing influences contributing to the purchase decision.

The two main points to draw from this is the following 1) importance of trust increases with age and 2) The

greater an acceptance of advertisement, the increased level of purchase. Implications to management are the

advantages direct mail can offer at a time when trust in online advertisement is tarnished. With it generally

accepted that Internet usage is rising at consumer and organisational level, this study however would indicate a

lack of confidence in online, and consequently causing organisations to revaluate the distribution of online and

offline spend, in order to create a trustworthy brand.

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How Can Direct Mail Effect the Purchase Decision

Improve Trust

It has been highlighted that the way in which marketing perceived is directly linked to the uptake of that product

(Kotler, 2010). Trust, convenience and reminder were increasing factors effecting purchase across both age

groups, with an average frequency of above 20% across the sample (Table 4). This reveals “Trust”,

“Convenience” and “Reminding Effect” as the largest influencers in the decision to purchase.

Age

Group

Stimuli Frequency Age Group Stimuli Frequency

25-34

Convenience 77%

35-45

Trust 56%

Trust 42% Convenience 48%

Price 25% Past Experience 30%

Information >5% Information 30%

Past Experience >5% Personalisation 25%

Table 4 - Stimuli Affecting Purchase

The above findings would highlight the impact of trust is far more important than previously considered in the

works of Howard & Sheth (1969) and Engel-Blackwell-Miniard (1990) who did not directly feature trust as a

stimuli. As Interviewee 3, 7 and focus group 1 suggests, the level of trust they placed in a brand directly

correlates to the volume and frequency of purchase.

I3: “Trusting a brand increases the amount I purchase from that company, as I know exactly what I am going to

receive”

I7: “The assurance I have of a products quality, honesty and reliability the increased likelihood I will purchase

from the organisation again”

FG1: “I have to be confident in the method of purchase before I commit to that process”

This theme has the potential to impact purchase situations that demand high levels of trust and honesty. As

respondents clearly indicate inkling towards situations that require trust and honesty. To contribute further depth

of understanding, the question “In what situations can Direct Mail work best in?” was put forward in later

discussions to uncover in what situations consumers viewed direct mail would have its greatest effect,

provoking the following responses:

FC2: “Direct Mail exhibits trust, therefore I would see Direct Mail in situations where trust is essential –

Banking, Health Care and Insurance”

FC2: “When purchasing a car, stereo or television I have always found that Direct Mail is suited best to these

situations”

Responses would suggest that direct mail has a strong case for applications in the above-mentioned sectors.

Moreover, the views of I8 and I3 (Pg. 18), who highlight the disadvantages of Online/The Internet as “Insecure”

and “Full of scams”, strengthens the case for Direct Mail as a future advertising, but also purchase medium.

However, a much deeper analysis in the purchase environment would be needed to prove/disprove the identified

themes.

Offer Convenience

Convenience occurred at an average frequency of 62.5% across both age groups, which would suggest

individuals have limited spare time. As such if time constraints exist within an individuals lifestyle, it has the

potential to lower the effectiveness of television and radio as advertising formats, due to increased usage needed

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to gain exposure to these formats (Wilby, 2001). The way in which age differs the way in which they consider

convenience across age was of particular interest in this study.

I1: “The convenience of being able to purchase on the move through the Internet has become of increasing

importance when looking to buy a product” & FC1: “time is always limited, any factor improving the overall

speed and convenience of purchase is seen favourable, E.g. Mobile & Contactless”

I9: “Having somewhere local view, feel and purchase the product” & FC2: “The comfort of viewing catalogues

at home, on the train or during my break gives me more time to justify purchase”

The above responses specify a clear dissimilarity between conveniences across age, what is important to note is

the citing of online and offline between age groups. I1 and FC1 point out primarily online methods of

advertising an purchase, citing “Mobile”, “The Internet’ and “Contactless” in comparison to I9 and FC2 who

cite offline methods “Catalogues” and “Local Stores”. This provides a sign that as age increases the preference

for offline formats of advertising and sales are favoured. However Interviewee 2 and Interviewee 7 contradicted

this above trend.

I2: “Any offering that can be directly placed in my hand, improves the overall convenience of purchase and will

benefit me” And I7: “A process that lowers the time I have to spend searching and offers me the best price”

FC2: “Direct mail is a physical advertising format in comparison to on screen, it continuously reminds me of

that product/service, as I keep re reading it”

Each contradicting the previous suggestions by I1, I9, FC1 and FC2, creating a basis for further study as the

perceptions and preferences amongst age are inconclusive and require greater examination. In addition to the

main discovery of “Trust” and “Convenience” as the main influences effecting purchase, reminding effect also

has a direct influence on the intent to buy.

Increase Consumer Knowledge

In literature two main sets of academics have sought to discover the process of the decision to purchase, as well

as a variety of factors influencing this decision. Howard & Sheth (1969) providing “Stimuli” as a classification

for the various pieces information influences. As FC2 implies a huge benefit to consumers is the concept that

you can pick up and re read the content, furthermore the focus on “Physicality” in the definition is an area that

could be of interest in further research. As the models of buyer behaviour imply consumers evaluate a

information at a variety of levels (See Figure 1), the results of this study therefore suggest that consumers will

evaluate the information more than once, consequently a greater exposure to information can greatly improve

the decision to purchase, due to it improving the knowledge consumer has of that product (Engel-Blackwell-

Miniard, 1990). However, it must be noted that frequency of the “Reminding” code was limited, an overall

indictor of its strength in prompting purchase.

Trust, convenience and reminding are the main “Stimuli” affecting the overall intention to purchase and Direct

Mail exhibits these as the main benefits from a consumer perspective (Table 1), it offers strong evidence to

answering the research objective “Can direct mail marketing still influence the buyers purchasing decision in the

21st century” in that it contributes the qualities consumers look for.

Direct Mail In The Future

This research has clearly identified that Direct Mail will still have an effect in years to come, supporting the

work of Dannaher (2011). When directly asked “Do you see a place in the future for Direct Mail?” response

amongst both groups was positive (Table 5). Providing a new direction to the research area since the work of

Leeflang et al (2013) who advocate limited Direct Mail in the future. With the overall objective of

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understanding perceptions, this investigation went further by providing some suggestion to the situations in

which Direct Mail would have its biggest effect.

Age Yes No

25-34 76% 24%

35-45 80% 20%

Table 5 – Will Direct Mail exist in the future – Age Comparison

The implications to managers is that is provides suggestion to the situations in which a Direct Mail approach

would be best suited namely, high information and personal products. With Internet and Mobile Banking

continually increasing (McKinsey, 2013) and online spend increasing five fold in 2014 (Daneshkhu, 2014),

indicates a strong movement online. This study counters this view, indicating that Direct Mail should not be

ignored as a future advertising medium. Furthermore, the strong perceived benefits of Direct Mail in

comparison to the lack of online benefits, provides a compelling argument for Direct Mail as a future medium.

As discussed above, one final point that provides a strong argument for the continued preference of Direct Mail

is evidenced by the results in this study.

Age Online Offline

25-34 45% 55%

35-45 40% 60%

Table 6 – Advertising Preference – Age Comparison

When individuals were given a the choice between social media and direct mail after lengthy discussions of

both, age groups showed a preference for direct mail, with the code “Offline“ being used, with frequency’s

greater than 50% (See Table 6). However, these suggestions must be taken in light of the limitations of the

research, namely sample size and research validity.

Discussion

In addition to the highlighted it is important to note this study’s perceptions in relation to previous academia

(Table 3). Berry (2001) is one of the main researchers on this area, highlights personal, selective, flexible and

discreet as the main perceived benefits of direct mail. This study has clearly identified personal as a main

benefit of direct mail, with a high frequency amongst respondents (See Figure 3.0). Moreover, the importance

of it in the purchase decision strengthens its applications in the 21st century. However, it can be argued that

much of what Berry (2001) highlights as advantageous is from an organizational perspective; therefore it

provides some explanation to the lack of agreement with Berry’s work. Earlier research by Lariscy et al (1996)

highlighted greater targeting and more competitive offerings, this study would provide support for the perceived

benefit of “Targeted” due to its high occurrence in early definitions. The absence of “More competitive

offerings” can be partially explained by the scenarios in which research was conducted. Lariscy et al (1996)

analyzing consumer’s actual purchase in much greater depth.

The areas in which this research agrees most directly to literature, is with the work of Korgaonkar (1984) and

Santana (2013). “Convenience” as highlighted by Korgaonkar (1984) was one of the highest identified benefits

of this study (See Table 1), furthermore as a strong attribute affecting purchase, it indicates that direct mail can

still have a huge effect in the purchase decision, supporting the work of Gillette (1970) and Berkowitz et al

(1979). Furthermore the scarcity of “Convenience” as a perceived benefit of online advertisement reinforces the

suggestion of direct mail as a future advertising medium. Of more recent studies, Santana (2013) pinpoints

“Reminding effect” as the main advantage of direct mail. Findings from this research strongly back his work. As

with convenience, the reminding effect was a main theme of this research. More importantly, the strong

presence of “Information” as a stimuli-effecting purchase bolsters the argument for future direct mail

advertisement.

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Furthermore, the observed importance of “Trust” as a perceived benefit has a great impact on the overall

decision to purchase. As Cheng et al (1998) and Shukla (2012) note, perceived benefits correlate to the overall

decision to purchase. As with convenience, direct mail is viewed as trustworthy and is a stimulus that the

consumer looks for, its applications as marketing tool in the 21st are strengthened to a greater extent. Finally,

the importance of the “Reminding effect” agrees with the prior work of Bergemann (2010), but adds greater

depth to his work by proposing a new knock on affect previously not highlighted. In relation to the low number

of unique benefits online can offer, it would indicate the long-term success of Direct Mail.

Effect of Age

Of the various studies that have been conducted over the past thirty years, there has been little consensus on the

effect of age on both the intent to purchase and its impact on perceptions. From the literature conducted this

research would counter the findings of Darian (1987) who states as age increases the preference for direct mail

decreases. Direct mail instead being viewed as favorable and having a place in the future (See figure 122).

Advocating the previous findings of Gillet (1976) and Settle et al (1994) who find little difference between age

and the adoption of a certain advertising format, instead suggesting both ages favor direct mail. The importance

of this is in relation findings in relation to the Eurostat (2010) statistics which highlight increased Internet usage

amongst younger individuals, suggesting a preference for online formats (Dutta-Bergmann, 2004). As such,

with such an indication, it provides a strong argument for management to reconsider the appropriate methods to

target younger consumers.

Conclusions / Recommendations

Since the work of early work of Gillette (1970), Reynolds (1974) and Darian (1987) various academics have

looked to discover the perceived benefits of offline advertisement, but few have examined offline effectiveness

in a marketplace flooded with online marketing tools (Social media, emails and Google ads). Moreover, with a

greater focus amongst current literature for online, the central objective of this research was to identify the

current and future influence of direct mail in the purchase decision; it has been successful in achieving this,

supporting the use of direct mail as a future advertising medium.

Findings have shown across a range of variables that Direct mail is still a highly influential method of

advertising. Most notably, the identification of convenience, trust and the reminding effect are further

strengthened by their correlation with the stimuli that effect purchase (Information, trust, convenience and

price). Additionally, the clearly consensus amongst respondents for direct mail existing in the future, but also

the situations in which direct mail will have its greatest influence (Banking and High trust situations).

Furthermore, based on the identification of benefits of direct mail this study can conclude that the Internet has

no detrimental impact on the perceptions of direct mail, but instead created further advantages (Personalised). In

regards to age, this study has offered suggestion that age has a limited impact on the perceived advantages of

direct mail, supporting the general trend found amongst previous studies (Gillette, 1976).

The significance of this study is that it clearly contributes to a new direction in future studies, opposing the trend

that online will replace offline (Dutta-Bergmann, 2004). With numerous perceived benefits that match

consumers wants, our findings would strongly suggest a reconsideration of spend, with a greater focus on direct

marketing to reach a range of age groups. Moreover, the strong perceived benefits despite increased Internet

usage, cements its place as a contributing factor in the purchase decision for years to come.

Recommendations for Further Study

Although this research has been successful in identifying a range of important implications for managers, it has

two limitations that can be addressed in future research. Depth of perceptions and attitudes have been the focus

of this study, but lacks the depth in sample size, future research should focus on gaining further depth of

understanding amongst the population, a wider use of qualitative methods would establish greater knowledge of

the wider perceptions of UK consumers, as location is an unexamined factor in the purchase decision. Age is

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another variable that hasn’t been fully examined, only comparing the attitudes of two age sets, other groups (18-

25 & 65+) also have an importance for marketers, due to the perceived high and low Internet usage.

Additionally, this study does not test if what people claim, follows through to actual purchase, therefore a gap

exists in research to test purchase patterns based on their perceptions of direct mail, requiring substantial

investment to establish enough data to gain validity.

Delimitations of Research & Limitations

The research has not focus on the following Direct Marketing techniques 1) Television Advertisement, 2)

Radio, primarily to narrow the focus of the research to allow for a more in-depth review of Direct Mail as an

advertising medium. Moreover, Dutta-Bergmann (2004) amongst other academics cites direct mail one as the

advertising most at threat. Additionally, Radio and Television cannot directly be replaced by Internet

alternatives; as such these marketing mediums will be excluded in this research. As Radio and Television will

still have a presence, even in the wake of increased Internet usage.

Limitations of Research

This research has several limitations, as a qualitative based study, this research aimed to gain depth to

understanding as opposed to generalizability. Sample size was therefore small in comparison to a quantitative

based study, which positivists would argue limits its validity and credibility. Sample size remained small

because of time constraints imposed by other assessments during the same period. If time constraints didn’t

exist then research would take a more triangulated approach, Mathison (1988) suggests triangulation improves

the validity of research. Additionally only accounting for two age ranges, a wider analysis of age must be

assessed to fully understand the population, a wider analysis of age would have contributed to more to marketers

and organisations. Finally, throughout this study there has been a strong indication from the sample that Direct

Marketing is still a favourable marketing method, but at no point has this been tested within a purchasing

scenario. As such proposals have been made of how these limitations can be incorporated into future studies.

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