Journal of Positive School Psychology http://journalppw.com
2022, Vol. 6, No. 6, 9398-9408
A Study On Awareness And Perception Of Customers
Towards Affiliate Marketing With Special Reference To
Agra Region
1
Dr. Govind Narayan ,
2
Prof. (Dr.) Abadh Narayan Singh
1
Assistant Professor, Faculty of business administration, R.B.S. Management Technical Campus, Agra (UP),
narayangovind007@gmail.com
2
Director, R.B.S. Management Technical Campus, Agra (UP), abadhyadav@yahoo.co.in
Abstract
Affiliate marketing is an advertising model in which a company compensates third-party publishers to
generate traffic or leads to the company’s products and services. The third-party publishers are affiliates,
and the commission fee incentivizes them to find ways to promote the company. The internet has increased
the prominence of affiliate marketing. In this sense, affiliate marketing is essentially a pay-for-performance
marketing program where the act of selling. The current study is being conducted to analyze the awareness
level of affiliate marketing among the respondents the study will be carried out by taking the survey of 180
respondents by non-probabilistic convenience sampling method from Agra Region by using structured
questionnaires and interview technique. Study found that there is awareness among the respondents towards
Affiliate marketing and it was also found that all socio-economic variables like age, education qualification,
gender and area of residence of the respondents have significant relationship with awareness level of
respondent towards the usage of affiliate marketing.
Keywords- Affiliate marketing, Perception, Awareness, Attitude, Socio economic variables.
Introduction
Internet marketing has gained significance with
the high growth rate of online media penetration
at global level because it offers richer
possibilities to directly target global consumers
and among the online available options. Affiliate
marketing has grown as one of the choicest
promotional tools for lead generation the digital
promotion Affiliate programs was appeared in
1996 when Amazon start to pay websites for
referring customers to join their site (Dabs
&Manaktola, 2007). In the pre-world wide web,
the concept of affiliate marketing was improved
by aircrafts, and then hotels and other travel
agencies, through global distribution systems
(GDS) to obtain wider reach to their target
audiences (Dale, 2003). The tourism sector was
one of the beginning industries to realize that
progresses in information technology allowed
companies to increase awareness, grow market
share via 24 hours online access to existing and
potential tourists, and to offer solution to the
traditional industry problems and seasonality
(Inkpen, 1998; Werthner& Klein, 1999; Barnett
&Stading, 2001; Law, Leung, & Wong, 2004).
Affiliate marketing is a kind of internet
marketing, whereby an organization (an
advertiser or merchant) signs an agreement with
another corporation (a publisher or affiliate) to
display a link for its website an affiliated sites
(Goff, 2006).
Affiliate marketing is an advertising model in
which a company compensates third-party
publishers to generate traffic or leads to the
company’s products and services. The third-party
9399 Journal of Positive School Psychology
publishers are affiliates, and the commission fee
incentivizes them to find ways to promote the
company. The internet has increased the
prominence of affiliate marketing. For example,
Amazon (AMZN) popularized the practice by
creating an affiliate marketing program whereby
websites and bloggers put links to the Amazon
page for a reviewed or discussed product to
receive advertising fees when a purchase is made.
Affiliate marketing based offline has been in use
much longer. An example from tourism: a
receptionist recommends a restaurant to the
customer .The receptionist then receives a
commission from the owner of the restaurant as
he has brought him a new customer. The affiliate
partner puts merchants' links on his web page and
for each visitor who buys something off these
links online; the affiliate receives a commission
from the merchant. Affiliate programs offers may
benefits for merchants, such as:
• Promotion.
• Choice, possibility of performance based
payment.
• Sale or some other transaction.
• Linking and increasing number of customers via
(SEO).
Although, there are many of travel affiliate
websites some users don't use them again or
repurchasing while other are more loyal to them.
In getting the reason beyond losing customer's
loyalty, we require to define the factors that can
effect on repurchasing and the customer's loyalty.
Online Advertising Compared To
Traditional Marketing
Publicizing on the web became amazingly quick.
Actually, internet promotion is viewed as the
quickest developing type of direct advertising.
There has been a discussion on whether the
Internet is to be viewed as customary promoting
or is another type of direct showcasing. Turban
et al. (2019) promoting is characterized as a push
to convey data so as to improve deals.
Conventional promoting was exceptionally
indifferent, in light of the fact that it generally just
comprised of one-way mass correspondence.
With direct showcasing, advertisers attempted to
customize publicizing and to make it
progressively viable. Despite the fact that
customary direct showcasing approaches worked
truly well, they were simply excessively costly
and moderate. Turban et al. Regular postal mail
battles had a reaction pace of just 1 to 3 percent.
In the event that the crusade cost would, at that
point be around $1 per individual, the expense per
reacting individual would run from $33 to $100.
This would just legitimize for costly items, for
example, vehicles. Market division helped
however didn't take care of the issue. The Internet
is presented as intelligent promoting. This is on
the grounds that it empowered publicists to
cooperate straightforwardly with clients as
buyers could now get more data or send messages
to pose inquiries. There are significant focal
points of publicizing on the web over
conventional mass promoting. Customary
publicizing media, for example, TV, radio,
papers, and magazines are broadly utilized, in any
case, the market is continually changing and
increasingly 9 individuals are investing more
energy in the web and utilizing cell phones.
Advertisers and sponsors are keen on arriving at
such potential. Presumably, the greatest
advantages that web-based promoting and
bringing to the table are low costs, productivity,
and intuitiveness.
Affiliate Marketing
Affiliate advertising is a sort of execution based
advancing in which a business compensations at
any rate one auxiliary for each visitor or customer
brought by the part's own exhibiting tries. It is a
type of on-line showcasing strategy wherein a
distributor advances a business endeavor through
promotion on their site and that prompts business
compensates the member with the commission
each time a guest, the client creates deals. Enfroy
(2018) Affiliate promoting is a well-known
strategy to drive deals and produce noteworthy
online income. Amazingly gainful to the two
brands and offshoot advertisers, the new push
towards less customary showcasing strategies has
paid off.
Facts:
• 81% of brands and 84% of distributors
influence the intensity of subsidiary showcasing,
a measurement that will keep on expanding as
offshoot promoting going through builds each
year in the United States.
• There is a 10.1% expansion in subsidiary
advertising spending in the United States every
Dr. Govind Narayan 9400
year, implying that by 2021, that number will
reach $6.8 billion.
• In 2020, content showcasing costs were
checked to be 62% of customary advertising
plans while at the same time producing multiple
times the leads of conventional strategies.
Actually, 16% of all requests caused online to can
be credited to the effect of member promotion.
• In March of 2020, Amazon's subsidiary
structure changed, offering paces of 1-10% of
item income for makers, giving the chance to
subsidiaries to significantly build their automated
revenue dependent on the vertical they're selling
on.
• The subsidiary promoting of Jason Stone, also
called Millionaire Mentor, was liable for as much
as $7 million in retailer deals just in the long
stretches of June and July in 2021.
Review of Literature
Sharma (2019) explained the importance of
Internet Marketing in e-commerce and gives a
brief introduction of Internet marketing.
Advantages of Internet advertising have been
explained while explaining the various e-
commerce revenue models like CPA, CPL, CPM
and CPI. The research examined various e-
commerce website like Flipkart, Snapdeal,
Shopclues, Homeshop18, Fashionandyou and
Dealsandyou. He concludes that Internet
Marketing is an essential tool for any company
that wants to improve their revenue.
According to Edelman and Brandi (2020) some
of the common frauds that affiliate may indulge
in are adware, cookie stuffing, typo-squatting and
loyalty software. Study discussed the various
affiliate management structures i.e. in-house
affiliates, specialist affiliate and the affiliate
network, which provides required technical
infrastructure. The research shows that affiliate
marketing allow sellers to advertise more
efficiently via Internet.
Dr. Sonal Kala & Rajesh Kumar Sharma
(2021) Stated that Internet is the central-hub for
quick and rapid lifestyle, communication,
connecting with people for official purposes. The
interactions between customers and service
providers in electronic commerce through the
retailer’s website. This study measured the
relationship between various characteristics of
online shopping and customer purchase
behaviour towards online shopping and future of
online shopping in India.
Obaidat, M. S., & Lorenz, P. (2019) Short form
of electronic commerce is e-commerce, it is a
type of innovative business model where
individual or group or a firm can buy and sell on
electronic network with support of internet. The
another names of e-commerce are online
commerce, web commerce, e-retail, e-tail and e-
comm. But e-tail refers to any transactional
processes around retail.
Venugopal et al (2021) Affiliate marketing is a
crucial source of the many things which provides
the mandatory tools for the creative and
hardworking individual to venture out on their
own. It can provide ample opportunity to earn
money doing what you're good at and also allows
someone to use their skills and expertise for his
or her own finances. It can get people started in
their own business enterprises with nearly no cost
or risk to themselves and does more with
relevance recent trends in web marketing. To get
a handle on increasingly about the idea, we
underline on the patterns and chances of
association advertising and its utilization in
current business through referrals in online
promoting. There are innumerable options with
the smallest amount possible risks that carry the
interested persons to the success and also the
technical and manual hazards to be avoided are
discussed during this paper.
Grzegorz Mazurek (2019) Affiliate marketing
may be a prospective strategy of internet
marketing and e-commerce, which essence lies
within the shift of responsibility for sales onto a
3rd party, in particular, on customers, who are
compensated commission subsequent to
persuading different customers to search for
items offered by a support (organization utilizing
the e-advancement tools). This text explores the
characteristics of affiliate marketing and presents
the perspectives of affiliate activities onto the
Polish e-market. The results are prepared on the
premise of literature review, a quantitative
inquiry conducted by means of an electronic
9401 Journal of Positive School Psychology
questionnaire on e-shops’ marketing managers in
Poland, and some interviews with experts from
affiliate marketing networks.
Statement of the problem
One of the recent trends in the field of marketing
is consumerism and the process of selling the right
quality of products to the right consumer and at
the right time. With the increasing competition,
exposure to customers, changing lifestyles it is
important that companies come up with different
strategies to keep the consumers on their toes and
ensure to provide them with accessibility and
convenience. Therefore, it is important that
everyone is aware of the recent strategies such as
Affiliate marketing which helps consumers to
access products faster and better competitively.
Therefore, this study is conducted in analyzing
the awareness and perception of consumers
towards affiliate marketing among the
respondents in India.
Objectives of the Study
• To study the level of awareness of affiliate
marketing among the respondents of the Agra
Region
• To understand the perception and
attitude of the respondents towards
the adoption of affiliate marketing
• To study the relationship between
demographic variable and level of awareness
of the Agra Region
Hypothesis
1. There is no significant awareness of
affiliate marketing among respondents
2. There is no significant relationship
between demographic variable and
the level of
awareness among
respondents towards affiliate
marketing
Research Methodology
Under this study the researchers will use both
primary data and secondary data. Primary data is
collected through questionnaire from Agra
Region. Secondary data is also used for the
purpose of the study from various sources like
Published books Newspapers, Journal, Published
articles, unpublished articles, various websites
etc. The sample size is 180 that are data will be
collected from Agra Region. Under this study the
researchers have used non probability sampling
method to collect data. Under non probability
sampling convenient sampling technique has
been used by the researcher for collecting the
sample. For this study appropriate hypothesis are
developed and will be tested by using statistical
tool- Regression analysis, factor analysis and chi-
square. Data analysis will be carried out with the
help of SPSS Version28.
Analysis and Interpretation
Regression Analysis
For analyzing the awareness level among the respondents about effective use of affiliate marketing
regression analysis was conducted.
Dependent factor
Heard about affiliate marketing.
Independent factor
Online shopping, affiliate wallet payments, online advertising,
online feedback system, e-commerce, e-
Search, email marketing, social media marketing.
F value of the model
11.001
R
2
.751
Significance level
.031
Dr. Govind Narayan 9402
The regression model is said to be
significant if the significance value is less
than 0.05 that is (p<0.05). The R-Square
value is .565 which is approximately
equal to 0.7 which means that the ten
independent variables influence the
awareness level to an extent of .751. The
dependent variables h a v e a
significant influence on the level of the
awareness of the respondents towards
affiliate marketing. The results are
analyzed to test the hypothesis H1 that is,
there is no significant awareness and
effect use of affiliate marketing in India.
Therefore, the null hypothesis that is, there
is no significant awareness of affiliate
marketing in India is rejected and the
alternative hypothesis that is, there is
significant awareness of affiliate
marketing in India is accepted.
H
o
1
H
0
Rejected
Ha
Accepted
Factor Analysis
The main objective to conduct factor
analysis is to determine the attitude of the
respondents towards affiliate marketing.
Factor analysis is the most common data
reduction technique using principle
component analysis.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
0.818
Approx. Chi-Square
823.981
Bartlett's Test of Sphericity
Df
45
Sig
.000
KMO=.818 which is greater than 0.7,
which indicate that all variables are
significantly correlated. Hence, it is
appropriate to carry out factor analysis.
Variables with less than 0.4 as
communality are not going to
significantly contribute to the entire data.
Hence, we discard such variables. Here the
table of communalities is provided below
in which all the variables have
communality value more than 0.4. Hence,
we consider all variables for the study.
Total Variance Explained
Componen t
Initial Eigenvalues
Extraction Sums of Squared Loadings
Total
% of
Variance
Cumulative
%
Total
% of
Variance
Cumulative
%
1
5.829
58.287
58.287
5.829
58.287
58.287
2
1.113
11.134
69.421
1.113
11.134
69.421
3
.840
8.397
77.818
9403 Journal of Positive School Psychology
4
.649
6.488
84.305
5
.377
3.772
88.078
6
.342
3.417
91.495
7
.247
2.471
93.966
8
.244
2.443
96.409
9
.186
1.865
98.273
10
.173
1.727
100.000
Extraction Method: Principal Component Analysis.
To find the new factors and the variables associated with them
Components
1
2
Affiliate
marketing is
.870
convenient in terms of usage
transactions through affiliate
.879
marketing saves time
affiliate marketing is better
.892
High Potential
than offline marketing
transaction through affiliate
.819
marketing will have proper
accountability
affiliate
marketing is user
.822
friendly
affiliate
marketing help in
.737
curbing black money
Not in favour
affiliate
costly
marketing is less
.773
affiliate
marketing
affiliate marketing is not safe
.872
and secure
affiliate
marketing will
.508
decrease cash flow in market
The number of factors to be chosen is based on
the Eigen values of the factors (>1) and the total
variance explained by such factors (>60%). In the
present case, we take 2 factors for further analysis
since they have Eigen values>1 and total variance
explained is 69.421% which is more than 60%.
These groups of respondents are highly interested
in affiliate marketing. They are active users of
affiliate marketing for day-to-day transactions.
They support affiliate marketing and this group of
respondents doesn't support affiliate marketing
they highly depend on direct transactions.
CHI SQUARE
To investigate the relationship with the
social economic variables and the level
of awareness among the respondents
towards usage of affiliate marketing, Chi-
Dr. Govind Narayan 9404
square analysis was done
Demographic Variable
Factor
Education qualification of
respondent
1. Heard about affiliate marketing.
Chi-Square Tests
Value
Df
Asymp. Sig.
(2-sided)
Pearson Chi-Square
3.691
a
6
.018
Likelihood Ratio
2.679
6
.248
Linear-by-Linear
Association
.832
1
.362
N of Valid Cases
180
Demographic variables
Factors
Education qualification of the respondent
Heard about affiliate marketing
Chi-Square Tests
Value
Df
Asymp. Sig.
(2-sided)
Pearson Chi-Square
18.033
a
8
.021
Likelihood Ratio
8.734
8
.365
Linear-by-Linear
Association
1.465
1
.226
N of Valid Cases
180
Demographic variables
Factors
Gender of the respondent
Heard about affiliate marketing
Chi-Square Tests
Value
Df
Asymp. Sig.
(2-sided)
Pearson Chi-Square
1.623
a
4
.001
Likelihood Ratio
2.050
4
.027
Linear-by-Linear
1.086
1
.297
Association
N of Valid Cases
180
Demographic variables
Factors
9405 Journal of Positive School Psychology
Area of the respondent
Heard about affiliate marketing
Chi-Square Tests
Value
Df
Asymp. Sig.
(2-sided)
Pearson Chi-Square
8.033
a
2
.015
Likelihood Ratio
6.034
2
.067
Linear-by-Linear
Association
0.765
1
.212
N of Valid Cases
180
From the above table age, education
qualification, gender and area of
residence are selected to check whether
there is significant relationship between
socio-economic variable and the level of
awareness among respondent towards
usage of affiliate marketing. The above
table shows the chi square values as
3.691, 18.033, 1.623 and 8.379
respectively and table value is .018, .021,
.001 and .015 which is less than 0.05, so
we reject the null hypothesis and accept
the alternative hypothesis that is there is
relationship between socio-economic
variables and the level of awareness
among the respondent towards the usage
of affiliate marketing.
H
o
2
H
0
Rejected
Ha
Accepted
Findings of the study
• As the main objective was to analyse the
awareness level among the respondents
towards the usage of affiliate marketing it was
found that there is awareness among the
respondents towards Affiliate marketing.
• The second objective of the study was to
analyse the attitude and consumer behaviour
towards the adoption of affiliate marketing
for which factor analysis was conducted.
Respondents were grouped in to two different
category based on the 10 variables as High
potential and Not in favour of affiliate
marketing.
• It was also found that all socio-economic
variable like age, education qualification,
gender and area of residence of the
respondents have significant relationship
with awareness level of respondent towards
the usage of affiliate marketing.
Conclusion
Present study has made an attempt to understand
the perception and attitude of the respondents
towards the adoption of affiliate marketing in
India particularly in Bengaluru city. The main
objective of this research is to determine the level
of awareness, attitude and relationship of social
economic variables towards the usage of affiliate
marketing. This study has a total of 180
respondents which was collected from Agra
Region and data collected was being analyzed by
using SPSS 28. The level of awareness towards
affiliate marketing was moderately high. As for as
attitude, it varies among the respondents. All the
Dr. Govind Narayan 9406
demographic variables had significant
relationship with awareness and effective use of
affiliate marketing. The growth of users of
Smartphone and internet penetration in such area
also facilitated the adoption of affiliate
marketing.
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