Executive Summary

The aim of current study has focused on exploring the online sales promotion that might influence consumers’ online decision making in China combine with the case study of Taobao. The research has focused on fulfilment of three key objectives. The first objective pertainsto evaluation of online sales promotion in shaping decision making of online purchasers. The second objective is about identification of identification of effective sales promotion on Taobao, while the final objective is about investigation of problems that are associated with online sales promotions at Toabao. The current research has been motivated by the notion that online sales promotion are being offered significant lacing to influence consumer’s purchasing decision making. The study has relied on extensive review of literature with an aim of setting theoretical foundation for the underlying research issue. The literature has significantly supported the notion that exist a considerable association between online sales promotion and purchasing decision making of online consumers.

In order to fulfil the aim of current study and to answer the underlying research questions, the quantitative research design has been adopted by the researcher by focusing on the numerous benefits of the quantitative study. The primary data collection method has been implied by the researcher and the data has been obtained through administration of online survey. The population of current research is comprised of online consumers of Taobao in China and UK. The 120 respondents have provided data for the current research, who have been contacted through internet and the link of online survey has been sent to them in email. While collection of data, the ethical concerns have been considered significantly by the research and neither of the respondent has been coerced in any manner for participation in current research study.

The researcher has kept his interference to minimum level to ensure high reliability and validity of data. The collected data has been analysed through descriptive method of analysis. The frequency distribution table and bar charts are being used to display the responses of participants. The results have indicated that online sale promotions are highly important for shaping the purchasing decision making of online consumers. The results have further provided that online sales promotion tools used at Taobao are highly effective for shaping consumer’s decision making and there are limited problems which are being faced by online consumers. Overall the results of current study were highly aligned with the findings of previous related studies. The results of the current study are highly significant for both practitioners and researchers as it can be implied by the retailers on Taobao to influence purchasing decision making of online consumers. Likewise, the findings of study have significantly added in the stream of growing literature. Moreover, in the light of limitations of current research, some improvements has been suggested that can be pursued by the future researchers. Finally, the study has been concluded by highlighting the important aspects along with main findings of the present research.

1Introduction

In contemporary business environment of intense competition, the organizations need to communicate the differentiated benefits of products to the consumers in effective manner (Ranganathan and Ganapathy, 2002). The active communication with consumers has been considered as an important way of creating value for the products and it also helps in shaping the purchasing intentions of consumers. The modern organizations are available with active source of communicating with consumers through internet. The internet has revolutionized the way to which companies can promote their products to the potential consumers in real time with greater reach and increasing effectiveness (Simonson and Nowlis, 2000). The online sales promotion can be pursued by relying on number of strategies such as online discount, online coupons and free shipping of products to the final consumers (Limayem, Khalifa and Frini, 2000). The greater ease to approach the products at reasonable prices act as an important element for influencing the purchasing decisions of consumers.

Along with this, the online sales promotions are carried out in way that has higher level of persuasion for the target consumers. The target consumer must be able to interpret message in the way that can arouse the intention of consumers for purchasing (Zhang, Prybutok and Strutton, 2007). The online sales promotions are considered as effective as internet can help the businesses to reach to huge number of consumers at one. The today’s consumers are likely to visit the website of companies prior to making purc