Online Marketing in Turkish E-retail Sector

Tamer Duymaz
Student’s ID No: 26548
Online Marketing in Turkish E-Retail
Sector: Analysis of Business and Consumer
Perspectives
MSc dissertation written under supervision of
PhD Izabela Koładkiewicz
Warsaw 2015

Abstract
Dissertation author: Tamer Duymaz
Dissertation title: Online Marketing in Turkish E-Retail Sector: Analysis of Business
and Consumer Perspectives
In this internet age, information technologies are increasingly penetrating our
daily life. Online shopping has become significantly important both for customers and
companies. Thus, importance of online marketing has increased and it has become a
crucial factor of success for companies. Online marketing currently constitutes a
significant marketing channel for a large number of firms, especially for e-retailers.
In Turkey, with the increased penetration rate of internet and adoption of online
payment, e-retail is the most promising and fast-growing sector. And as e-retail is
accounting for a larger percentage of overall e-commerce volume, there is a need to
identify the use of online marketing and managers’ profile in this sector. However, there
are very limited studies to investigate consumers’ opinions about online advertisements
in a developing country context.
In order to better address the concerns described above, this study explored online
marketing, e-retailing and online consumers. Furthermore, a comparative study has been
conducted to analyze the use of online marketing in Turkish e-retail sector both from
business and consumers perspectives. Additionally it attempted to give a fresh view both
for online consumers’ and e-retail managers’ profiles. The findings showed that e-
retailers should pay attention to privacy and security for consumers. Therefore, e-retail
companies should also consider to be present online and have integrated marketing
strategies on internet. Finally, e-retail managers should manage more personal and user
dedicated online marketing campaigns.
Key words: Internet, e-commerce, e-retail, online marketing, internet advertising, online
consumers, Turkey
Subject area code in “Erasmus for all” program: 04000
ii

Abstract ii
Table of Contents iii
List of Tables v
List of Figures vi
Glossary viii
Table of Contents
INTRODUCTION................................................................................................................................. 1
1.1. Background and Research Gap ..................................................................................................1
1.2. Research Aims and Objectives ....................................................................................................4
1.3. Research Questions ....................................................................................................................5
1.4. Thesis Structure..........................................................................................................................5
CHAPTER 2 - RETAIL, E-COMMERCE AND ONLINE CUSTOMERS IN TURKEY & WORLD..... 7
2.1. Retailing Overview......................................................................................................................7
2.2. Retail Sector in Turkey ...............................................................................................................9
2.3. E-Commerce Overview ............................................................................................................. 11
2.3.1. Types of E-Commerce............................................................................................................ 12
2.3.2. Types of Online Payment Systems.......................................................................................... 14
2.4. E-Retail Overview..................................................................................................................... 15
2.5. E-Commerce and E-Retail in Turkey........................................................................................ 16
2.6. Online Customers..................................................................................................................... 20
2.7. Online Customers in Turkey..................................................................................................... 21
CHAPTER 3 - ONLINE MARKETING IN TURKEY & WORLD ...................................................... 26
3.1. Online Marketing Overview...................................................................................................... 26
3.2. Online Advertising Pricing/Revenue Models............................................................................. 29
3.2.1. Impression Based Models - CPM and CPV......................................................................... 29
3.2.2. Performance Based Models – CPC, CPA and CPL.............................................................. 30
3.3. Types of Online Advertising...................................................................................................... 30
3.3.1. Search Engine Marketing ................................................................................................... 31
3.3.2. Display / Banner Advertising.............................................................................................. 33
3.3.3. Social Media Marketing ..................................................................................................... 34
3.3.4. Mobile Advertising ............................................................................................................ 35
3.3.5. Rich Media / Video Marketing ........................................................................................... 36
3.3.6. Media Buying / Sponsorship............................................................................................... 36
3.3.7. Affiliate Marketing............................................................................................................. 37
3.3.8. E-mail Marketing............................................................................................................... 38
3.4. Online Marketing in Turkey..................................................................................................... 38
CHAPTER 4 - METHODOLOGY....................................................................................................... 42
4.1. Research Methodology.............................................................................................................. 42
4.1.1. Research Aims and Objectives ........................................................................................... 43
4.1.2. Research Questions............................................................................................................ 43
4.2. Sampling Design....................................................................................................................... 44
4.3. Primary Research..................................................................................................................... 44
iii

4.3.1. Online Questionnaires........................................................................................................ 45
4.3.2. Preparation of the Questionnaires ....................................................................................... 46
4.4. Secondary Research.................................................................................................................. 48
4.5. Limitations................................................................................................................................ 48
CHAPTER 5 - RESULTS AND CONCLUSIONS............................................................................... 50
5.1. Data Analysis of Business Questionnaire ................................................................................. 50
5.1.1. Age.................................................................................................................................... 50
5.1.2. Gender............................................................................................................................... 51
5.1.3. Education Level ................................................................................................................. 51
5.1.4. Income Level ..................................................................................................................... 52
5.1.5. Occupation / Position in Company...................................................................................... 52
5.1.6. Internet Usage.................................................................................................................... 53
5.1.7. Companies’ Data................................................................................................................ 55
5.1.8. Business Questionnaire Results .......................................................................................... 60
5.2. Data Analysis of Consumer Questionnaire............................................................................... 61
5.2.1. Age.................................................................................................................................... 61
5.2.2. Gender............................................................................................................................... 62
5.2.3. Education Level ................................................................................................................. 62
5.2.4. City.................................................................................................................................... 63
5.2.5. Internet Usage.................................................................................................................... 63
5.2.6. Online Shopping Experiences............................................................................................. 65
5.2.7. Online Advertising Experiences ......................................................................................... 68
5.2.8. Consumer Questionnaire Results ........................................................................................ 69
5.3. Findings ................................................................................................................................... 71
5.4. Conclusions.............................................................................................................................. 76
5.5. Recommendations for Further Research .................................................................................. 79
BIBLIOGRAPHY ............................................................................................................................... 80
APPENDIX I: Online Questionnaires - Business................................................................................ 92
APPENDIX II: Online Questionnaires - Consumers .......................................................................... 99
iv

List of Tables
Table 2.1 - Top 20 Retailers in 2014…………………………………….………...……..8
Table 2.2 - 2013 Global Retail Development Index…………………………………….10
Table 2.3 - Classification of E-commerce………………………………………...…….13
Table 2.4 - E-commerce Transactions in Turkey between 2013 and 2014…………….18
Table 2.5 - Top 15 Countries With Internet Penetration More Than 45% in 2013……..22
Table 2.6 - Use of Information and Communication Technology (ICT) in Households
and Individuals in Turkey 2011-2013……………………………………….……..…..23
Table 2.7 - Results of the ICT Usage in Households and by individuals in Turkey
2013…………………………………………………………………………………….27
Table 3.1 - IAB Turkey Digital Advertising Investments…….………………...……..40
v

List of Figures
Figure 1.1 – Global Internet Users Between 1996 and 2013..……………………………2
Figure 1.2 - Digital Ad Spending Worldwide, 2012-2018…….…………………………3
Figure 1.3 - Thesis Structure…………………………………………………………….6
Figure 2.1 - Share of Online Retail to Total Retail by Country in billion TL in 2014...…17
Figure 2.2 - E-commerce Market Size Turkey – Categories in 2013…….……………..19
Figure 2.3 - Broadband Internet Subscribers Numbers in Turkey………..……………..22
Figure 3.1 – The First Example of Online Advertising, Web Banner…………..………27
Figure 3.2 - U.S. Annual Internet Advertising Revenue 2004 – 2013…………….…….28
Figure 3.3 - Global Internet Advertising Revenue 2008 – 2013………………...………28
Figure 3.4 - Internet Ad Revenues by Pricing Model……………………….…………..29
Figure 3.5 - Ad format revenues comparison 2012 and 2013………………..………….31
Figure 3.6 - Global Search Engine Market Share 2014…………………..………….….32
Figure 3.7 - IAB Display Advertising Guidelines………………………………………34
Figure 3.8 - Online Ad Growth YOY in Europe in 2013……………………….……….41
Figure 3.9 - Display Ad Growth Including Mobile Ad YOY in Europe………….……..41
Figure 5.1 – Business Respondents’ Age………………………………………………51
Figure 5.2 – Business Respondents’ Gender………………………………...…………51
Figure 5.3 – Business Respondents’ Education Level…………………………………52
Figure 5.4 – Business Respondents’ Income Level……………………….……………52
Figure 5.5 – Business Respondents’ Occupation………………………………………53
Figure 5.6 - Business Respondents’ Internet Usage Years……………...………………53
Figure 5.7 - Business Respondents’ Online Hours…………………………………..…54
Figure 5.8 – Business Respondents’ Working Years in E-Retail Sector…………..……54
Figure 5.9 – Business Respondents’ Employee Numbers of E-Retail Companies…...…55
Figure 5.10 – Business Respondents’ E-Retail Company Product Categories………....56
Figure 5.11 – Business Respondents’ E-Retail Company Payment Systems………..….57
Figure 5.12 – Business Respondents’ Online Marketing Channels Management…...….57
Figure 5.13 – Business Respondents’ Online Marketing Spending of E-Retail
Companies……………………………………………………………………………...58
Figure 5.14 – Business Respondents’ Online Ad Formats……………………...………59
Figure 5.15 – Business Respondents’ Online Pricing Models……………….…………59
vi

Figure 5.16 – Consumer Respondents’ Age……………………………………………62
Figure 5.17 – Consumer Respondents’ Gender……………………………...…………62
Figure 5.18 – Consumer Respondents’ Education Level…………………….…………63
Figure 5.19 – Consumer Respondents’ Cities…………………………………..………63
Figure 5.20 – Consumer Respondents’ Internet Usage Year……………………...……64
Figure 5.21 – Consumer Respondents’ Online Hours…………………………………64
Figure 5.22 – Consumer Respondents’ Online Shopping Experience………….………65
Figure 5.23 – Consumer Respondents’ Online Shopping Products/Goods……………66
Figure 5.24 – Consumer Respondents’ Payment Systems………………………..……67
Figure 5.25 – Consumer Respondents’ Influence Factors……………………...………67
Figure 5.26 – Consumer Respondents’ Sources……………………………………..…68
Figure 5.27 – Consumer Respondents’ Online Advertising Formats……………..……69
vii

Glossary
Banner Ad: A graphical web advertising unit.
B2B: Business-to-business
B2C: Business-to-consumer
BKM: The Turkish Interbank Card Center
CAGR: Compound Annual Growth Rate
C2C: Consumer-to-consumer
CMS: Consumer management system
CPC: Cost per click or pay per click
CPA: Cost per action or cost per acquisition
CPM: Cost per mille or cost per thousand
CPL: Cost per Lead
EU: European Union
IAB: Interactive Advertising Bureau
OBG: Oxford Business Group
PwC: Pricewaterhouse Coopers
ROI: Return on Investment
RTB: Real time bidding
SERPs: Search engine result pages
SEM: Search engine marketing
SEO: Search engine optimization
SMM: Social media management
TL: Turkish Lira, the currency Republic of Turkey
TUBISAD: Turkish Informatic Industry Association
TUIK: Turkish Statistical Institute
TÜBİTAK: The Scientific and Technological Research Council of Turkey
WEB / WWW: World Wide Web
WTO: The World Trade Organization
viii

INTRODUCTION
This chapter outlines the background and the context of the study. Objectives of
the research are also presented which serve as a basic foundation to formulate the broad
focus for this study. The part covers the scope of the study and the arrangement of the
overall thesis structure are also summarized.
1.1. Background and Research Gap
The Internet began as a way of linking different computers over the phone
network, but now it connects billions of users worldwide from wherever they happen to
be via portable or fixed devices. The Internet is a multi-billion dollar industry in its own
right, but it is also a vital infrastructure for much of the world’s economy (OECD, 2012).
Internet becomes an indispensable part of daily life due to computer, mobile phone and
other hard wares that cheapen through developing communication technologies. Hence
popularity of online purchasing is increasing from 90s and people use internet not to only
research specific information seeking or communication, but also to fulfill their daily
needs and purchase product and services via online shops.
Today, the internet has become fundamental to the global economy with more
than 2,6 billion worldwide internet users (see Figure 1.1) and online audience almost
reached 3 billion that is over representing 40.4% of the population in July 2014, also 520
million Europeans use internet via a home or work computer (Internet Live Stats, 2014).
In this perspective internet has turned into a major economic and social force that has
almost substituted some of the more traditional communication methods and it is
continuing to affect a broad range of other important activities in our everyday lives.
Internet technology has changed the world rapidly in the past decade, nevertheless
people’ shopping habits have changed too. People do not only use the Internet only for
communication and information seeking, yet online purchasing is increasingly popular.
A new business which calls electronic commerce established via website as web stores
and the influence of that business brought out new marketing methods and channels.
Hence, the new types of marketing strategies appeared for that online business.
1

Figure 1.1: Global Internet Users Between 1996 and 2013
Source: KPCB (2014) - United Nations / International Telecommunications Union, US
Census Bureau, Euromonitor International, web.
Online marketing campaigns are important to build long-term relationships with
customers is emphasized for varying reasons in marketing literature. However, modern
marketing philosophy which suggests building ongoing, interactive and long term
relationships with customers is hard to realize in today’s markets. Because, company’s
resources are limited, number of products and services available in the market are many
and consumers are more sophisticated than ever. For that reason, effective usage of
marketing channels and understand consumer’s behavior of interaction to online
advertising becoming more and more important than customer acquisitions and sales
strategies for marketers. Hence, rapid growth of internet usage and e-commerce leads us
to analyze this business and consumers' online shopping behavior which is becoming
increasingly crucial to setting effective marketing strategies.
In this study, Turkey is examined as a developing country with comparison of
global market data. Turkey is a prospective member of European Union, it is needed that
Turkish market requires a comprehensive study in terms of consumer behavior and online
marketing. Internet penetration in Turkey has more than doubled in the last 5 years and
reached 45% at the end of 2013 (KPCB, 2014). Furthermore, Turkey has the youngest
European internet audience with nearly 70% under the age of 35 that states biggest
2

proportion of young internet users all around Europe (Deloitte Retail, 2013). Online
marketing and internet retailing are the promising business sectors in Turkey. According
to IAB Press Release April 2014, global online ad spending almost reached almost to
$120 billion in 2013, Europe has $25 billion and Turkish market has about $500 million
share within that outlay. It also estimated that will increase by a further 14,8% at the end
of 2014 to $137,53 billion and will almost double in 2018 (see Figure 1.2)
Figure 1.2: Digital Ad Spending Worldwide, 2012-2018
Source: eMarketer, March 2014, web
Furthermore, comScore reports that total desktop-based U.S. retail e-commerce
spending was $211 billion in 2013 and accrued $56.1 billion in Q1 2014, up 12%. year
ago (comScore, May 2014). The Turkish Interbank Card Centre is cited by Euromonitor
as stating that Turkey had an e-commerce volume of US $15.7 billion in 2013 (BKM
Reports, 2014) At the same time these numbers show that internet retail sector in Turkey
is growing at a remarkable pace through a number of brand new initiatives and strong
demand from online consumers.
Based on this background information presented above, early studies for major
developed countries were examined to develop a better understanding of online business.
3

Also, sophisticated researches in consumer behavior literature helped to understand the
utilitarian and hedonic needs of online customers. Since online marketing and customers
behavior literature is mostly western originated and thereby a nonwestern, especially a
Turkish view will be an addition to the existing literature body. Although various studies
have been done, the investigation of these areas is limited for Turkey. Although emerging
researches aimed to identify online business, retail sector and online consumers’
behavior, there is a need to provide general outlook for online marketing of e-retail
companies, manager’s profiles and consumers’ opinions for online advertising.
1.2. Research Aims and Objectives
The internet is undoubtedly one of the biggest social revolutions of our times and
online marketing has a great potential to contribute to improving profit of companies and
boost their reputations. Understanding these factors will better help to companies to
manage presence in online media also, marketing budgets can be allocated more
productively to maximize returns. Therefore, upon the advent of the internet, traditional
retail companies started to make their products and services available to customers online,
opening up the new communication methods and delivery channels to online websites. In
order to have a better understanding of e-commerce sector, it’s important to identify
retailing, marketing and customers within both traditional and online perspectives.
As mentioned at the research gap chapter, there is a need to analyze online
marketing activities of e-retail sector in Turkey. And it is necassary to identify decision
makers and managers’ profiles based on demographics, experiences and online marketing
decisions factors. However, there is also an opportunity to identify Turkish online
consumers’ demographical profile and analyze their integration with online marketing.
This study helps to fill these voids by investigating online marketing strategies of e-retail
companies in Turkey. It aims to identify the use of various online marketing channels and
advertising types in these companies. Hence, this study also helps to find out Turkish
consumers' opinions about online marketing activities and variables of advertising types
that affect their shopping behavior. Furthermore, it is important to consolidate the
findings of research, so both business and consumers’ aspects helps to better analyze the
4

results. The findings of research about online marketing can provide benefits not only
for e-retail, but also to other online business sectors.
This study aims to fill these gaps with analyzing the use of online marketing in
Turkish e-retail sector both from business and consumers perspectives, additionally it
attempts to give a fresh view both for online consumers’ and e-retail managers’ profiles.
The specific objectives of this research can be then summarized as follows:
I. To identify profiles of Turkish decision makers/managers in e-retail sector
(demographics, work experiences and online marketing strategies)
II. To identify profiles of Turkish online consumers and analyze their
interaction with online marketing channels and online ad formats
III. To analyze the use of online marketing e-retail sector in Turkey
1.3. Research Questions
This study use primary and secondary data to analyze and gather information
about online marketing and e-retail business in Turkey, the above objectives were
translated into the following research questions:
Q1. What is the general profile of Turkish decision makers & managers in e-retail sector?
Q2. What is the general profile of Turkish online consumers?
Q3. What are the opinions and attitudes of Turkish online consumers for online
advertising?
Q4. Which online marketing channels and types are using for e-retail sector in Turkey?
1.4. Thesis Structure
The thesis contains five chapters and it is designed to support a confirmatory
structural equation modelling approach, as illustrated in figure 1.3. Following the
introduction chapter which provide general outlook of the study, next two chapter provide
literature reviews. Chapter 2 covers the literature reviews about retailing and e-commerce
5

overview, also indicates analyzes of online consumers both in Turkey and World. In
Chapter 3 online marketing channels and advertising formats will be identified and
presents general outlook of online marketing sector in Turkey. In Chapter 4, the
methodology, research limitations, research strategy and approaches are discussed. The
last section is Chapter 5 where provided data results of survey and research findings are
discussed and compared with the literature. Concluding remarks support the research
findings and justifications also answering thesis questions based on results. Last chapter
also offers the implications of the current research results on practice and proposed
research directions for the future.
Figure 1.3: Thesis Structure
Chapter 1 General Introduction
Chapter 2 Literature Review
Chapter 3 Literature Review
Chapter 4 Methodology
Chapter 5 Results and Conclusions
Structural Model
Development &
Confirmation
6

LITERATURE REVIEWS
The following two chapters contain the literature reviews of retailing, e-
commerce, online consumer’s data and online marketing details both for Turkey and
Worldwide coverage.
CHAPTER 2 - RETAIL, E-COMMERCE AND ONLINE
CUSTOMERS IN TURKEY & WORLD
2.1. Retailing Overview
Retailing is the sale of goods and services to the ultimate consumers for personal,
family or household use. Thus retailing involves more than selling tangible products. The
purchase of a service as a haircut or dry cleaning is also a retail transaction (Roger C.,
Paul B. 1988). David Gilbert (1999) defined retail as: “Any business that directs its
marketing efforts towards satisfying the final customer based upon the organization of
selling goods and services as a means of distribution.” There are many approaches to
understanding and defining retailing; most emphasize retailing as the business activity of
selling goods or services to the final customer. The actual term “retailing” is thought to
be derived from the old French word “retaillier” which means “a piece of” or “to cut up”
(Brown, S. 1992). This implies the breaking of bulk function of the retailer that is the
acquiescing of large amounts of the products they sell and dividing it up into smaller
amounts to be sold to individual consumers.
However, the concept also referred as middleman or intermediaries. That means
they receive and pass on products from producers and wholesalers to customers which
occupying a middle position. While the trading of goods has always been a part of
traditional societies, in recent times the buying and selling of products has become a much
more formalized and brand-dominated activity (David G. 1999). According to the
Fairhurst and Fiorito (1990), the definition of the retail buying is “The decision-making
process used by the buyer to discover, evaluate, and select merchandise for resale to the
final consumer.” In literature, most of the researchers studied the industrial buying and
7

neglected the retail buying; because of this, there are not too much models about the retail
buyer‘s decision process.” David G. (1999 p. 21) also indicates the importance of retailing
process; “Retailers are becoming increasingly important in their role as gatekeepers
within the channel of distribution. In the past, when suppliers were dominant, retailers
supplied the merchandise that was on offer and customers selected from this. However,
as retailers have become significantly more powerful they are more able to exert their
power over suppliers and stock only the brands they wish to sell, depending on their
overall retail strategy and supplier relationship.” According to Deloitte Global Retail
Report 2013, the retail industry accounts for over US$15 trillion in global revenue, and
is expected to maintain strong growth. Table 2.1 shows the top 20 retailers based on sales
all around the World.
Table 2.1: Top 20 Retailers in 2014
Source: National Retail Federation 2014, web https://nrf.com/2014/top100-table
As a retail structure becomes increasingly developed, the retailing industry has
experienced numerous changes during the technological revolution. The following
definition of retailing by Ganesh (2004 p. 140) reflects the multichannel orientation of
the industry. "Retailing can be defined as the delivery of goods and services demanded
by consumers at the right time, price and place. Retailing is a broad umbrella term used
to denote a firm selling to consumers in a store, through the Internet, mail, phone,
television shopping networks, door-to-door or consumer’s vending machines." Even the
Rank Company
2013 Retail
Sales (000)
USA Sales Growth
('13 v '12)
Worldwide
Retail Sales
(000)
USA % of
Worldwide
Sales
2013 Stores Growth ('13 v '12)
1 Wal-Mart $334,302,000 1.7% $473,979,000 70.5% 4,779 4.6%
2 Kroger $93,598,000 1.6% $93,598,000 100.0% 3,519 -1.8%
3 Costco $74,740,000 5.2% $105,100,000 71.1% 447 2.8%
4 Target $71,279,000 -0.9% $72,596,000 98.2% 1,793 0.8%
5 The Home Depot $69,951,000 6.6% $78,812,000 88.8% 1,965 0.0%
6 Walgreen $68,068,000 1.3% $70,096,000 97.1% 7,998 2.3%
7 CVS Caremark $65,618,000 3.1% $66,682,000 98.4% 7,621 2.0%
8 Lowe's $52,210,000 3.6% $53,417,000 97.7% 1,717 0.1%
9 Amazon.com $43,962,000 27.2% $77,551,000 56.7% N/A N/A
10 Safeway $37,534,000 -3.7% $42,982,000 87.3% 1,335 -5.3%
11 McDonald's $35,856,000 0.7% $89,126,000 40.2% 14,267 0.9%
12 Best Buy $35,766,000 -1.2% $42,159,000 84.8% 1,492 -0.5%
13 Publix $28,917,000 5.2% $28,917,000 100.0% 1,273 2.8%
14 Macy's $27,868,000 0.9% $27,931,000 99.8% 837 -0.5%
15 Apple Stores / iTunes $26,648,000 11.0% $30,736,000 86.7% 254 1.6%
16 Sears Holdings $26,614,000 -13.4% $31,283,000 85.1% 1,905 -41.0%
17 Ahold USA / Royal Ahold $26,118,000 1.1% $44,028,000 59.3% 767 -0.6%
18 Rite Aid $25,526,000 0.5% $25,526,000 100.0% 4,587 -0.8%
19 TJX $20,923,000 7.7% $27,423,000 76.3% 2,454 5.1%
20 H-E-B $19,683,000 8.1% $21,000,000 93.7% 311 0.3%
8

size of this sector large, retail companies have to consider perspective of consumers and
newest technological improvements for sustainable business. So, based on new trends of
consumers decisions, changing the shopping environment and other globalization issues,
major retail multiple chains are looking for new opportunities new areas in which to grow
their business, and expanding their businesses by moving internationally (Levy and
Weitz, 2003). In this manner, developments in technology and direct marketing and other
improvements within the sector, moved retailers in different ways in 20th century and the
born of internet paved the way for online shopping.
2.2. Retail Sector in Turkey
According to study conducted by Nebahat and Yonca, until the 1980s, Turkey
relied on a development strategy based on import-substituting industrialization, under
which the semi-controlled mixed economy showed little response to changes in the
international circumstances. The business environment was protected and directed to the
internal market, and there was an overall discouragement of direct foreign investment.
The modern retailing started after liberal economic reforms in 1980s which directly
affected to flow of foreign direct investment to the various sector in Turkey. Since the
late 1980s, in addition to large domestic conglomerates, international retailers have also
entered the market by cooperating with Turkish firms either through licensing agreements
or joint ventures. In Turkey, Koç, Sabancı, Tekfen, and Doğuş groups are most popular
domestic players in retail, also most of worldwide retailers are present in the country
(Nebahat and Yonca,1998). “One of the major changes through which the Turkish
economy has gone in the last two decades has been in the balance between formal and
informal economy. More than 50% of Turkey’s economy was “black” before the 1990s.
Traditional retailers didn’t not have a disciplined invoicing practice, while modern
retailers enforce strict rules for invoicing. Despite the strong pressure from bakkals
(corner stores) and other traditional retailers and the risk of anti-populism, the Turkish
government supports organized retailers for VAT and corporate taxes (PwC İstanbul
2006, p.251-262).” In the following years, the retail sector continue to grow shifted by
economic changes and governmental support.
9

According to IMF World economic outlook report (IMF 2013) Turkey is the
largest 17th
largest economy in the world with US$821.798 GDP in 2013. General
overview shows that, after a remarkable performance at previous years, with experienced
mild GDP growth, estimations for next years are positive too. Retailing benefited from
the positive economic conditions in Turkey especially in 2012. GDP growth and
increasing disposable incomes resulted in faster growth in retailing. Based on Atkearney
2013 Global Retail Development Index, Istanbul is the eleventh most attractive location
for international retailers in Europe. Turkey is the 7th
largest organized retail market in
Europe and 10th
in the world. Also, Turkey 6th
most attractive country within retail sector.
(see table 2.2)
Table 2.2: 2013 Global Retail Development Index
Source: Atkearney (2013) Global Retail Index, web
This economic growth affects not only retail sector, but each business and life
standards with market attitudes of Turkish consumers. Based on The Turkish Interbank
Card Center data, the total value of credit and debit card transactions in supermarkets and
shopping centers grew with a Compound Annual Growth Rate -CAGR- of 12% in the last
six years and reached €275 million in 2013 (BKM Annual Reports 2014). In this case
Turkish retail sector is maintaining momentum due to increasing per capita disposable
income, coupled with an ever-growing consumer appetite. Furthermore the total size of
organized and unorganized retail sector is estimated to have reached $300 billion in 2013.
10

Deloitte’s retail sector update research points that the size is expected to grow with a
CAGR of 10% between 2013 and 2017 (Deloitte, 2014). One of the biggest challenges to
companies for retail and consumer products are sustainability, marketing effectiveness,
market value recognition and influence of new technology in Turkey. These challenges
need to be confronted with internet technologies in order to fully realize the potential of
Turkey’s retail sector. Growth needs to be promoted, yet scrutinized, and regulations need
to be thoughtfully crafted to ensure long-term benefits for the country (OBG 2012). Due
to economic perspective and general outlook of the sector, e-retailing is one of the
promising business area in Turkish economy.
2.3. E-Commerce Overview
The internet as one of the greatest technological inventions, which transformed
society, daily life and business, also changed the fundamental mechanisms of the global
economy. Because this research concerns online marketing approaches of e-retail
websites which are part of overall of e-business, it is important to understand the
definitions of e-business, online shopping, e-commerce, e-retail and related
classifications. One of the important outcomes of advancements in information
technology is the development of the internet and networking technologies that are the
backbone of today’s e-business or e-commerce (Porter, 2001; Smith & Correa, 2005). E-
commerce defines as “technology-mediated exchanges between parties “individuals or
organizations” and the electronically based intra- or inter-organizational activities that
facilitate such exchanges”. (Rayport and Jaworski 2004, p. 495) E-business refers to “a
broader definition of e-commerce, not just the buying and selling of goods and services,
but also servicing customers, collaborating with business partners, and conducting
electronic transactions within an organization” (King et al., 2002, p. 5). Previously the
terms e-commerce and e-business had been used interchangeably, both by scholars and
practitioners (Fillis et al., 2004; Ramsey et al., 2003; Simpson Docherty, 2004).
However, Turban et al. (2006) argue that the term e-business refers to a broader
conceptualization of electronic trading than e-commerce, as it also includes the buying of
goods/services, collaborating with business partners, conducting e-learning and the
support of internal business processes. E-commerce is considered to be part of the broader
11

category of electronic business, the founding application of which was electronic data
interchange. “E-business incorporates services that do not directly involve commercial
transactions such as online customer support, account maintenance, provision of
information resources etc.” (Browne 2000). However, knowing the core technology
principles of the internet is vital to anticipating new approaches as they emerge and
matching the marketing approaches to technological capabilities. The digital, networked,
individual framework starts with the foundation of it all the move to digital economy
(Ward and Kırthi, 2007).
Traditional retailers build the online channel to complement conventional stores,
supplementing conventional stores with an internet presence (Burt and Sparks 2003).
Thus, they are called multi-channel or “bricks and clicks” retailers (Reynolds 2000). Pure
players are companies that do not have an up-front store presence and sell products only
via the internet (Browne 2000). Web-shopping behavior does not necessarily follow
traditional consumer behavior in the bricks-and-mortar retailing environment. Thus,
Internet marketers are urged to explore the determinants of customer online purchasing
intention among web shoppers (Lohse and Spiller, 1999). Online shopping takes place in
different contexts, forms, and sizes and also frequencies of orders. Online retailing has
hence emerged as an electronic means of shopping due to the facilitation of e-commerce
(Turban et al. 2006). One of the first usages of “E-commerce” was from IBM in 90’s and
also they created a first thematic campaign based on this term using rich media
technology, which allows web surfers to interact with an ad in greater depth than before,
and then it became worldwide reach and created an enormous business with its sub sectors
(AdAge, 1999).
2.3.1. Types of E-Commerce
E-commerce is handled by three types of parties; business, consumer and
government. Based on business model, user and pricing perspectives, it’s widely used
three main classifications for e-business: Business-to-Business “B2B”, Business-to-
Consumer “B2C” and consumer-to-consumer “C2C”. B2B refers to business
transactions, including e-business transactions, between firms; in particular, the term
refers to a firm’s supply chain members, intermediaries, and business customers (Trites
12

et al., 2006). Table 2.3 indicates the relations between these parties, therefore in this study
we mostly focus on B2C, B2B and C2C among these nine forms of e-commerce.
Table 2.3: Classification of E-commerce
Business Consumer Government
Business
B2B
Supply chain,
Wholesalers
B2C
Retailers (Goods or
services)
B2G
Contract bidding,
Privatization
Consumer
C2B
Public bidding
marketplaces,
Auctioneers
C2C
Public flea markets
C2G
Public
government
auctions
Government
G2B
Tax and fees collection
G2C
Tax and fees collection
G2G
Budget allocation
Source: Murillo, 2001, p.371
Kenneth and Carol indicates these types of e-commerce in more details; the most
commonly discussed type of e-commerce is Business-to-Consumer (B2C) e-commerce,
in which online businesses attempt to reach individual consumers. Within the B2C
category there are many different types of business models, such as; portals, online
retailers, content providers, transaction brokers, market creators, service providers and
community providers. E-retail is a major B2C model (Kenneth & Carol 2011).
Business-to-Business (B2B) e-commerce, in which businesses focus on selling to
other businesses. There are two primary business models used within the B2B arena; net
marketplaces, which includes e-distributors, e-procurement companies, exchanges and
industry consortia and private industrial networks which include single firm networks and
industry (Kenneth & Carol 2011).
Consumer-to-Consumer (C2C) E-commerce provides a way for consumers to
sell to each other with the help of an online market maker such as the auction site eBay
or the classified site Craiglist. In C2C e-commerce, the consumer prepares the product
for market, places the product for auction or sale and relies on the market maker to provide
13

catalog, search engine and transaction-clearing capabilities so that products can be easily
displayed, discovered and paid for (Kenneth & Carol 2011).
2.3.2. Types of Online Payment Systems
With the growing complexities in the e-commerce transactions, different
electronic payment systems have appeared in the last few years. At least dozens of
electronic payment systems proposed or already in practice are found (Ward H., Kırthi
K. 2007). There are several payment methods supporting electronic payments and
ecommerce over the internet:
• Electronic payment cards (credit, debit, charge): These are widely used to pay on
line. Initially there was relatively little adaptation of credit or debit cards to online
payments apart from additional security codes. It also include virtual credit cards
which are belong to owner’s bank account. (Turban, E., et.al 2006)
• Electronic funds transfer (EFT): EFT involves electronic transfer of money by
financial institutions (EPS, 2013).
• E-wallets: They include stored financial value and other important personal and
financial information used for online payments (EPS, 2013).
• Electronic cash/money (e-money/e-cash): This is standard money converted into an
electronic format to pay for online purchases.
• Person-to-person (Peer-to-Peer) payment methods (Payment Websites): It allows
the transfer of digital cash via e-mail between people who have accounts at e-Cash
enabled banks. P2P transactions allow online payment and financial transfers between
consumers, e.g. PayPal (EPS, 2013)
• Mobile payments (Wireless payments): Mobile payments are payments conducted
through wireless devices. They may be used to conduct payments for example via a
bank account or via the telephone bill (EPS, 2013).
According to BKM Reports 2014 the most preferred payment system is credit and
bank/debit cards in Turkey, however mobile payment systems and cash on delivery is
also increasing trends among online retail sector. (BKM 2014) So, in this study these
14

payment methods “Credit Card, Bank Transaction, Cash on Delivery, Payment Websites
and Mobile Payment” will be considered to analyze overall researched e-retail business.
2.4. E-Retail Overview
E-Commerce provides the format in which online retailers can communicate with
customers and offer products and services for sale over the internet. Customers can obtain
information about products, buy products, and have informational goods delivered over
the network 24hrs a day from anywhere around the world. (Levy and Weitz, 2003). This
definition emphasizes the ways in which online retailing is gaining its position as a major
non-store shopping medium worldwide, enhanced by internet technologies (Dennis et al.
2009). Technological innovations have created a consumer-friendly online retailing and
online marketing environment. Technological developments have enabled development
of retail platforms and models that enable retailers to offer products and services online
as well as sell and transact on these offerings (Taylor and Strutton, 2009).
In this sense, traditional retailers had opportunity to move their business online.
These companies can be segmented by their presence between online and offline sector.
There are various ways to classify online retailing. A traditional retailer operate in
physical stores or malls, known as “brick-and-mortar” companies (Laudon and Traver,
2001), when they shift their business online while maintaining physical stores, they
known as “click-and-mortar” companies. On the contrary, when they run online business
without physical store, they known as “pure-play” online retailers (Jones et al., 2002).
The web has created a new marketplace for millions of consumers to conveniently shop
and e-retail is one the most profitable over electronic commerce (Kenneth, Carol 2011).
Furthermore, nowadays internet retailers offer various products and services. Customers
are able to purchase electronics, home products, cosmetics, toys, flowers, food and
beverage, also event tickets, exotic trips and most of other online products and services.
Rowley (2001, p. 203-212) identified a number of unique attributes of the e-retail:
• “The essential nature of the channel is different from more traditional channels; for
example the ability to view marketing communications round the clock and from
15

anywhere that there was the facility to do so – creating reach and availability of
unprecedented scale,
• The potential audience is global and undifferentiated, but once reached, can be
differentiated and identified,
• The channel constrains marketing communication to non-human contact forms, but
at the same time provides greater scope for interactivity through dialogue rather than
broadcast.”
The internet enables companies to enter new markets with ease and at low cost, so e-
retailing brings new opportunities into the business market. Especially, small enterprises
can widely reach to their target audience, expand their targets and provide products or
services all around the world. There are no such costs as rent, payment of sales people
and storage deposits, and there are no publishing and a more intense scope of advertising
can be realized with lower costs (Charles et.al. 2004). In summary, the basic purpose of
internet retailing is to generate revenue from selling services and products to online
customers. The difference in business formats could be related to the difference in the
purpose of Internet sales channel establishment. This difference, then, could be associated
with the different focus of business strategy and online marketing approaches.
2.5. E-Commerce and E-Retail in Turkey
At the first years, internet and e-commerce has started and supported by
governmental institutions in Turkey. The Scientific and Technological Research Council
of Turkey (TÜBİTAK) arranged a meeting to decide the principles of e-commerce
roadmap of Turkey in 25th August 1997 and endeavors on transformation into an
information society have also started to increase since early 2000s in parallel to
worldwide developments. The citizenship services are implemented into the digital
perspective and started to operate online to accept applications or data queries, such as
passport, residency, traffic issues and many more. E-commerce sector struggled to gain a
quick momentum due to speed of internet, lack of technology, not many international
private company and general economic reasons (Çakır, Topçu, 2005). State Planning
Organization declared their strategy as; “To be a country that has become a focal point in
the production of science and technology, that uses technology as an effective tool, that
16

produces more value with information-based decision-making process and that is
successful in global competition, with a high level of welfare” (DPT, July 2006, p.2 ).
That governmental organization is also adapted a roadmap and supported online business
sector; “E-retail allows enterprises, especially the SMEs, to get a bigger share from world
trade. In order to ensure that enterprises benefit from this opportunity at maximum level,
the security problems slowing e-commerce” (DPT, July 2006, p.28). However, the
increasing trend of internet usage especially from 2004, lead the companies to present on
web and reach their customers with online channels. According to Deloitte 2014 report
retailing was the pioneer sector as first entries to e-commerce business in Turkey and
reached to rewarding position as an emerging country (see figure 2.1).
Figure 2.1: Share of Online Retail to Total Retail by Country in billion TL in
2014
Source: Deloitte 2014 Global Powers of Retailing, web
Based on Oxford Business study, e-commerce in Turkey grew spectacularly over
the last years, and has become a sell-side channel as a result of the increasing
competitiveness between major retailers. Although retail’s ascent is supported by
encouraging demographic factors, such as a large young, tech-savvy population, and
steady investments particularly in retail real estate some concerns have arisen (OBG
2012). The numbers simultaneously increased year by year and according to BKM -
Interbank Card Centre, online Turkish retail transactions grew with total value of e-
commerce transactions which includes online payment of tax charges but excludes
17

payment on delivery, through virtual point of sales networks reached €190 million in 2013
(see table 2.4), indicating 35% year-over-year growth. (BKM Reports 2014)
Table 2.4: E-commerce Transactions in Turkey between 2013 and 2014
Source: BKM Reports 2014, web
In the overall coverage of Turkish e-commerce sector, there are some stakeholders
that are proportionally affected from the growth of the e-commerce sector. In this study,
covered portion only include companies that sells goods / services, which are assessed
under different categories, with some exceptions: some worldwide retailers which are not
physically existent in Turkey, ‘Booking.com’, ‘hotels.com’ and similar foreign sites are
excluded and digital content sites are not also taken into consideration due to limitations
of measurement. Turkish e-commerce eco-system covers these numbers and data;
(TUBISAD 2013)
• 620 websites in Pure Online Retail category,
• 430 websites in Multi-Channel-Retail category,
• 234 websites in Travel & Transportation category,
• 6 websites in Online Legal Betting category.
Companies in multi-channel category;
• Clothing & Footwear: Damat, Defacto, Flo, LCW, Penti, etc.
• Electronics: Bimeks, Gold, Teknosa, Vatan, etc.
• Travel & Transportation: IDO, Kamil Koç, Onurair, Pegasus, THY, etc.
• Leisure: Biletix, D&R, Joker, Mybilet, etc.
2013 YEAR
2014 YEAR
(1st & 2nd
quarters)
105.810.679 92.702.688 € 6.680,152 € 6.862,969
E-COMMERCE TRANSACTIONS IN TURKEY
Total Total Total Total
193.324.855 168.061.356 € 11.899,62 € 11.933,12
The Number of Transactions Volume of Transaction (Million €)
Domestic and
International
Transactions with
Domestic Cards
Domestic
Transactions with
Domestic and
International Cards
Domestic and
International
Transactions with
Domestic Cards
Domestic
Transactions with
Domestic and
International Cards
18

• Home & Decoration: Doğtaş, Ikea, Koctas, Tekzen, Tepe, etc.
• Other: Carrefour, Dominos, Migros, Saat & Saat, Tchibo, etc.
Companies in pure online category;
• Multi-Category: Hepsiburada, Kliksa, Webdenal, etc.
• Legal-Online Betting: Bilyoner, Misli, Nesine, Tuttur, etc.
• Vertical: Evim.net, Kitapyurdu, Lidyana, Vivense, etc.
• Market Place: Gittigidiyor, N11, sahibinden.com, etc.
• Private Shopping: Limango, Markafoni, Morhipo, Trendyol, etc.
• Travel & Transportation: Neredekal, Tatilsepeti, Tripsta, etc.
According to TUBISAD market definition and sizing report, online retail has 1.3%
market share within total retail spending (TUBISAD 2013). Multi-channel category
websites which are offering various good and services to customers are performing better
than the others in e-commerce market (see figure 2.2). It shows the online shopping
environment develops, that some retail sectors are particularly vulnerable to the growth
of online shopping.
Figure 2.2: E-commerce Market Size Turkey – Categories in 2013
Source: TUBISAD 2013, web
2,90
0,90
0,80
0,70
0,70
0,50
0,40
0,30
0,30
0,20
0,10
0,30
0,00 1,00 2,00 3,00 4,00
Multi - Channel– Transportation&…
Pure Online – Market Place
Pure Online - Betting
Pure Online – Private Shopping
Pure Online – Multi Category
Multi-Channel–Electronic
Pure Online – Transportation&…
Multi-Channel– Other
Multi-Channel– Clothing & Footwear
Multi-Channel– Home & Decoration
Multi-Channel– Leisure
Multi-Channel– Other
E-commerce Market Size Turkey - Categories
Billion USD (2013)
19

2.6. Online Customers
Related the growth of internet, more enterprises and retail companies shift their
business into the online stores and these effect the importance of online customers. The
internet has significantly improved the way organizations distribute goods and services,
communicate with customers, and promote their goods and services. There have been
many research and analyses conducted to understand the factors of online users’ behavior
and their opinions about online shopping. According to Rodriguez-Ardura et al. (2009)
the identification and analysis of the factors involved in explaining the consumer’s
predisposition or intention to buy on the Web as well as an explanation of the actual
buying behavior have emerged as prominent in recent consumer behavior research.
Understanding what customers demand and having which products or sevices available
are important components of e-retailing. Joines, Scherer and Scheufele (2003) identified
that online shopping is becoming one of the primary uses of the internet and that there is
a strong link between the activities and motivations of internet use and online shopping,
and hence, e-retailing. Online consumer behavior theory is ultimately a derivative of
consumer behavior theory as online consumers display similar behavioral characteristics
to traditional consumers (Dennis et al. 2009). Online and offline behavior have aligned
in the consumer decision-making process, increasing consumer spending (Sands et al.
2010). The increasing sophistication of online retail websites has also influenced online
consumer behavior dynamically, perceptually and interactively (Mollen and Wilson,
2010). In this perspective, e-commerce trends being perceived as a key influence on
online consumer behavior. Such phenomenal growth may be attributable to the Internet’s
potential to increase buyers’ access to information and choice, as well as retailer
opportunities (Varadarajan and Yadav, 2002).
Today’s e-retail business for needs of customers, it has become critical the
importance of online presence and multi-channel retailing for the survival of retailers. It
has been estimated that Internet marketing in the form of advertising alone will remain
the fastest growing marketing medium (Gill, 2008). Studies have shown that multi-
channel retailers, who first had a traditional retail outlet and then established a web
presence, acquired double the consumer click rate of retailers who were only internet-
based (Shoenbachler and Gordon 2002). According to comScore report (March 2013),
47% of UK consumers said they would be more likely to shop with a retailer if they could
20

buy online and collect the item in-store, while 58% want the ability to buy online and
return items in-store. Many consumers are willing to research and select products online
but would rather not to wait delivery. These consumers find online shopping and in-store
pickup attractive (Ward H., Kırthi K. 2007). According to Monsuwe, Dellaert et al.
(2004), online environments fulfil customer needs more than conventional environments,
due to the following reasons:
• The ability to browse the whole product assortment with minimal efforts.
• Consumers have increased competency in making better shopping decisions due to
their ability to obtain critical knowledge about firms, products and brands.
• Consumers can compare products‟ features, prices and availability in a more effective
and efficient manner.
• Shopping can take place with a level of anonymity especially with sensitive products.
• Online shopping saves time to consumers and offers high level of convenience.
Finally, these reviews show that with online shopping, customers’ behavior changes
so, the firms should also understand and respond these customer’s needs. It’s becoming
more important to engage online users, and reach them via internet channels using
effective way of online marketing.
2.7. Online Customers in Turkey
Turkey has been suited between Europe and Asia continents served as a bridge
between Eastern and Western ideals, cultures and societies. It has major characteristics
of a Mediterranean culture. Turkish customers’ demographic characteristics are
significantly different from those of western customers’ in terms of age and cultural
aspects (Lighther and Yenisey et. al. 2002). It’s important and also useful for many
aspects to investigate e-commerce, e-shopping and online marketing for consumers of a
developing country. Turkey has great potential with a very big young population, internet
users and online market. Internet penetration almost reached to 45% at the end of 2013
(see table 2.5) and total internet subscribers increased to 35 million. (see figure 2.3)
21

Table 2.5: Top 15 Countries With Internet Penetration More Than 45% in 2013
Source: KPCB (2014) - United Nations / International Telecommunications Union, US
Census Bureau, web
Figure 2.3: Broadband Internet Subscribers Numbers in Turkey
Source: ICTA 2014, Electronic Communications Market in Turkey, p. 24
22

According to the press release of Turkish Statistical Institute (TUIK, August
2013), the highest proportion of computer and internet usage is at 16-24 age group.
Internet access is 90,8 percent for enterprises and 49,1 percent for households. Proportion
of regular Internet user aged 16-74 who uses the internet almost every day or at least once
a week is 49,9 percent. Proportions of the internet users men have 59,3%, and women
have 38,7% within whole group (see Table 2.6).
Table 2.6: Use of Information and Communication Technology (ICT) in Households
and Individuals in Turkey 2011-2013
Information Society Statistics, 2011-2013
%
2011 2012 2013
ICT Usage in Enterprises
Computer Usage 94,0 93,5 92,0
Internet Access 92,4 92,5 90,8
Having Website 55,4 58,0 53,8
ICT Usage in Households and Individuals
Computer Usage (Total) 46,4 48,7 49,9
Male 56,1 59,0 60,2
Female 36,9 38,5 39,8
Internet Usage (Total) 45,0 47,4 48,9
Male 54,9 58,1 59,3
Female 35,3 37,0 38,7
Households with access to the
Internet
42,9 47,2 49,1
Source: TUIK 2013, Turkish Statistic Institute, Main Statistics, web
Due to high number computer and internet usage also with promotional factors,
the numbers of Turkish online shoppers are respectively increasing than previous years.
According to the results of ICT Usage Survey in Households and Individuals carried out
in (TUIK 2013) 24.1% of Internet users aged 16-74 bought goods or services over the
Internet for private purposes. The proportion of Internet customers was 21.8% in the
previous year. 48.6% of Internet customers bought clothes and sports goods, 25.8% of
23

that electronic equipment, 25.6% of that household goods, 20% of that other travel
arrangements (transport tickets, car hire, etc), 15.9% of that books, magazines,
newspapers (including e-books) and 15.7% of that foods or groceries between the
research dates. However, TUIK research shows that the main purpose to use internet is
reading online news among Turkish people and almost 60% of internet users are seeking
information about goods or services on websites. (see Table 2.7)
Table 2.7: Results of the ICT Usage in Households and by individuals in Turkey,
2013
Purposes %
Sending/receiving e-mails 62,5
Participating in social networks 73,2
Reading or downloading online news/ news papers/news magazines 75,6
Subscribe to news services or products to receive them regularly 21,3
Seeking health-related information (e.g. İnjury, disease, nitration, etc.) 59,6
Looking for information about education, training or course offers 45,9
Finding information about goods or services 59,9
Downloading software (other than games software) 19,1
Posting opinions on civic or political issues via websites (e.g. blogs, social
networks, etc.)
28,7
Taking part in online consultations or voting to define civic or political issues 12,8
Doing an online course (in any subject) 8,4
Consulting wikis to obtain knowledge on any subject 32,6
Looking for a job or sending a job application 12,9
Participating in professional networks (creating user profile, posting messages,
or other contributions to Linkedln, Xıng etc.)
4,2
Using services related to travel or travel related accommodation 26,6
Selling of goods or services, e.g. via auctions 9,3
Telephoning over the Internet / video calls (via webcam) over the Internet 55,1
Internet banking 24,8
Source: TUIK 2013, Turkish Statistic Institute, Main Statistics, web
24

Based on Sina Afra’s report, the young population of Turkey, helped to increase
the usage and popularity of new technologies and especially provide substantial
background for e-commerce sector. This increase is also triggered by decrease price of
internet, widespread the usage of internet and increase of its speed, rise of credit card
holders and new technologies of banking systems. Therefore, credit card is the major
online payment option for online customers in Turkey (Sina Afra, 2013). A previous
study by Lighther and Yenisey et al (2002) revealed that there are some significant
differences in online shopping habits and preferences of Turkish customers, when
compared to US customers. Turkish users responded that they are more concerned about
technology issues, security, and privacy in Internet shopping than are their US
counterparts. In general, technology infrastructure is still an issue in Turkey. Therefore,
Turkish consumers expressed more concern about the speed of online information
retrieval. Turkish participants expressed more concern with Internet security and privacy,
which were mentioned as major limitations of developing countries in EC diffusion
(Lighther and Yenisey et. al. 2002).
Even if these numbers and conditions are promising, online shopping is still at the
development stage in Turkey, especially the correlation between online marketing and
attempting of users’ online purchases is insufficient data. There are not much information
is known about user’s opinions about online marketing. Therefore, it is crucial to have a
general profile of business sector and individuals who manage these online marketing
campaigns for these users. This study also helps to fill this gap by investigating channels
of e-retail websites in Turkey.
25

CHAPTER 3 - ONLINE MARKETING IN TURKEY & WORLD
3.1. Online Marketing Overview
First of all it’s important to understand the definitions of marketing and
advertising in term of online strategies. Marketing is summarized by Blythe (2009) “as a
process of determining the products or services which will attract people to consume or
purchase, and a time period of progressing a strategy to improve business potential by
creating customers and sale of the goods and services.” Richards and Curran (2002)
attempted to update the definition of advertising. After a series of interchanges with
advertising experts, they developed the following definition (p.74): “Advertising is a paid,
mediated form of communication from an identifiable source, designed to persuade the
receiver to take some action now or in the future.” By extension, it would seem quite
logical to define Internet advertising as any form of communication that meets the
definition of advertising. And advertising also defined by Bruner and Gluck (2006) “ as
nonpersonal communication of information usually paid for and usually persuasive in
nature, about products, services, or ideas by identified sponsors through various media.”
As same in the traditional definitions terms advertising is part of overall marketing
process. The consensus conclusion is that consumers who shop multiple channels are
spending more than consumer who shop only with a single channel, in part because they
have more discretionary income but also because of combines number of “touch” points
that marketers are making with consumers (Kenneth and Carol, 2011).
Results of growing internet usage as a new medium, let the companies to serve
their products or services to customers via websites, so this has led to a new form of
marketing known as online marketing. Online marketing which is also called
digital/internet or e-marketing is the process of marketing a brand using digital channels.
Therefore, in the most basic of definitions, online advertising which is part of whole
marketing activities is the promotion of a product or brand via any form of electronic
media (Wikipedia, Online advertising, 2014). Kenneth and Carol (2011) also defines
online advertising “as a paid message on a website, online service or other interactive
medium. Online ads also provide great opportunities for interactivity two-way
communication between advertiser and potential customers” However, internet
26

advertising is a push-pull-interact strategy. The advertiser makes the advert available on
the net “push”, the user select the advert “pull” and if he is further interested he can for
instance E-mail the advertiser “interact” (Kenneth and Carol 2011). Online marketing
leverages web technologies and applications to create new ways in which consumers and
organizations can interact between each other. (Parsons, Zeisser, & Waitman, 1998). The
internet offers many advantages to online firms such as the shortening of the supply chain,
eliminating or reducing inventories, improving organizational visibility to a wider
customer base, increasing revenues through cross-selling opportunities, improving
interactivity, and gathering massive amounts of information on customers via surveys and
spending habits (King et aI., 2002).
Trends and numerous researches provide that online advertising has been on a
steady rise. Since 2004, its growth has outpaced not only cable advertising but also any
other marketing medium. The history of online advertising starts with a static banner on
website. AT&T was the first to display the online ad they created, a 468 x 60 banner that
came to life on October 25 1994. At the figure 3.1, this artsy, graffiti'd print on a black
background telling you to click "right here" is supposedly the first banner ad to ever
appear on the Internet. (Ward and Kırthi 2007)
Figure 3.1: The First Example of Online Advertising, Web Banner
Source: Ward and Kırthi, 2007
Kridler positively predicted the future of online advertising in 2004, “The online
advertising industry is growing at a rapid rate. Since its incepting in 1994, the online
advertising has faced various challenges and changes. However, the use of online
advertising is increasing in popularity at a fast pace. It is projected the online advertising
industry will grow exponentially compared to advertising in other medium.” Online
advertising is diverse, due to the different modes of communication the internet offers.
Some of the popular forms of online advertising include: e-mail advertising, mobile,
affiliate advertising, banner/video advertising and search engine advertising etc. (Kridler,
2004). In this study, there are detailed analyses each of these types of online advertising.
27

Hence, the popularity of online advertising increasing year by year. Based on
IAB’s report (IAB, April 2014), online advertising revenues in the United States totaled
$42.8 billion for the full year of 2013, and increased 17% over 2012. (see figure 3.2) And
the other graph shows the global internet advertising revenue by years. (see figure 3.3)
Figure 3.2: U.S. Annual Internet Advertising Revenue 2004 - 2013
Source: IAB/PwC Internet Ad Revenue Report, 2014, web
Figure 3.3: Global Internet Advertising Revenue 2008 - 2013
Source: KPCB (2014) - PwC Global Entertainment & Media Outlook, 2013, web
28

3.2. Online Advertising Pricing/Revenue Models
The revenue and pricing models of online advertising mainly divided to two main
categories; impression based models and performance based models. Performance based
ones called as CPC, CPA, CPL, impression based ones are CPM and CPV (IAB, 2014).
However, these pricing model definitions may change usage by medium or channel, the
other concept “hybrid” is also taking into consideration to evaluate online advertising
revenues. Figure 3.4 shows the comparison between these pricing models.
Figure 3.4: Internet Ad Revenues by Pricing Model
Source: IAB Internet Ad Revenue Report, April 2014
3.2.1. Impression Based Models - CPM and CPV
Cost per thousand “CPM” or thousand impressions pricing model (the “M” stands
for Mille – which represents 1,000 in Latin) is based on the exposure/reach of an ad to an
audience banner ads typically have varying CPMs based on their size, position, and
placement on website. Khan et al. describe “Cost per thousand (CPM) is a pricing model
in which the publisher is paid for each impression served. Regardless of the effectiveness
of the advertisement, the advertiser must pay a rate negotiated based on every thousand
impressions served. This pricing model is commonly used in branding efforts and tends
to range from as low as $1 CPM for non-premium space to more than $30 CPM for
29

premium inventory” (Khan et al., 2010). However, after the popularity of video ads, a
new pricing/revenue started to use, which is called CPV – Cost per View. Same as CPM,
this model based on impressions but video ads. Advertisers pay only if users watch the
video more than particular seconds or click the video to lead their website or landing
pages (Fulgoni and Morn, 2009).
3.2.2. Performance Based Models – CPC, CPA and CPL
Cost per click (CPC) is also known as PPC (Pay per Click) a performance-based
pricing model in which is paid for each unique click on an advertisement. Advertisers pay
each time a user clicks on their banner adv. Cost per Action/Acquisition/Activity (CPA)
like cost per click, this method is also performance based, but the publisher is instead paid
every time a user completes an advertiser-defined conversion. CPA pricing is most often
used with lead generation and affiliate advertising (IAB, 2014). Cost per
Lead/Conversation (CPL), Cost per Order (CPO) and Cost per Engagement (CPE)
another performance based models which the advertiser defines the required action by the
user – whether that be signing up for a service, ordering a product, downloading a
document, etc. (Rayport, and Jaworski, 2004). This model and is commonly used in
affiliate marketing.
3.3. Types of Online Advertising
Online advertising is growing and becoming as much important as traditional
methods, however measurement and targeting possibilities continue to evolve, that
provide to use various types of online ads for companies. “The internet has the ability to
support a variety of online advertising formats, some of which we do not find in
traditional media” (Ward H., Kırthi K. 2007). Therefore new technologies provide new
channels for marketers and progressive types of online ads occurring or evolving as
hybrid types and now it’s more crucial to optimize budgets and analyze the effectiveness
among these types. The internet offers marketers the widest spectrum of advertising
formats (IAB 2012). According to Wolin, Korgaonkar and Lund (2002), “web
advertising’s broad format consists of commercial content paid for by sponsors, designed
for audiences, delivered by video, print, audio, graphics or animation”.
30

Advertisers have so many more options that it can be overwhelming. “Related to
the rapid developments in Internet world, there are several types in online advertising.
The types can be listed as banners, sponsorships, pop-ups, interstitials, push technologies,
links, paid search, behavioral targeting, contextual ads, rich media (including online
commercials, video on demand, webisodes, others) and e-mail marketing” (Belch &
Belch, 2007). Among various type of online advertising search remains the leading
format, representing a larger amount of the share within other ad formats. (see Figure 3.5)
In this study, the main ones and also most favored types are introduced.
Figure 3.5: Ad format revenues comparison 2012 and 2013
Source: IAB (April 2014) Internet Advertising Revenue Report 2013 full year results,
web
3.3.1. Search Engine Marketing
There are three major search engine dominates the industry, Google, Yahoo and
Bing (Microsoft) but obviously Google pioneer with most of the country, except such as
Yandex popular only Russia or Baidu in China. Figure 3.6 shows the global market share
of search engines, Google is the top search engine with 70% market share
(NetMarketShare Website 2014).
31

Figure 3.6: Global Search Engine Market Share 2014
Source: NetMarketShare Website 2014 Market Share Statistics for Internet
Technologies, web
However, using search engine became a daily routine for our life, as people
connect to internet first they open their web browser with automatically leading a search
engine page, and also use these engines for any data or information. Based on Statista
website statistics, top four major search engines processed appx. 19 billion search queries
in October 2014 in USA. Therefore, pioneer search engine Google Sites processed about
12,58 billion at the same month in USA and so far 6 billion daily search queries globally
in 2013 (Statista April 2014) Google is a part of popular culture, with “googling” as a
verb for checking information online. Millions use it as their automatic choice to find
people, websites, movie reviews or any information.
Popular search engine company Google is also founder of keyword based of
search engine advertising which is another online advertising tool. “The commercial
potential of Google developed gradually and somewhat surprisingly. At first, Google had
traffic but no revenue. The breakthrough for Google was the Adwords system, which lets
advertisers put simple text-based ads on the same page as search engine results. When
users click on an ad, taking them to the advertiser’s web site, Google charges a fee to
advertisers. The relevance and focus of the ad proves to be highly effective, as it is
Google - Global;
69,66
Baidu; 17
Yahoo - Global;
6,36
Bing; 5,92 AOL - Global; 0,24
Ask - Global; 0,14
Yandex - Global;
0,04
TOTAL MARKET SHARE
32

triggered by the searchers own words. Adwords are easy to create and let advertiser
carefully track the profitability of their keyword advertising. Fees are set by auction,
generating much more revenue than a flat fee” (Ward H., Kırthi K. 2007).
Search engine marketing mainly divided two major categories; search engine
advertising and search engine optimization. Search engine advertising “SEA” also called
paid search engine inclusion and placement, one of the most popular online advertising
method. Fees advertisers pay online companies to list and/or link their company site
domain name to a specific search word or phrase (IAB April 2014). Search engine
optimization “SEO” is not included paid placement on search results but listing on
organic searches. Even it knows as free visibility on search engines, due to high
competitiveness especially for generic keywords. Because of that a new service occurred
to optimize webpages to get higher rank on the search results. IAB (April 2014) reports
describe as “site optimization – payments made to optimize a site in order to improve the
site’s ranking in search engine results pages.” This new form of advertising involves
progressive techniques to direct users to websites. More than any other forms of online
advertising, search engine marketing has altered the entire marketing industry. The
increasing usage of search engine and seeking information via this platforms created a
new style of online ad (Richards and Curran 2002).
3.3.2. Display / Banner Advertising
Banner ads, like affiliate ads, redirect the user to the advertisers Web site when
clicked on. However, even if the ad is not clicked on, banner ads have been shown to have
an influence on visitor attitudes and help build the advertiser brands (Hofacker & Murphy,
1998). Display Ads were the first internet advertisements. A banner ad displays a
promotional message in a rectangular box at the top or bottom of a computer screen. A
banner ad is similar to a traditional ad in a printed publication but has some added
advantages (Kenneth and Carol, 2011). Display ads are categorized by three main specific
style such as; classic banner ads, rich media ads and video ads. In more details, banner
ads can be created as static image, flash banner, animated gifs or interactive rich media
forms. And The Interactive Advertising Bureau (IAB), an industry organization, has
established voluntary industry guidelines for these banner ads. Their guidelines includes
33

specifications for virtually all types of ads and buttons to allow marketers to develop ads
featuring enhanced interactivity as well as expanded creativity. See figure 3.7 examples:
Figure 3.7: IAB Display Advertising Guidelines
Source: IAB Display Advertising Guidelines (2012)
3.3.3. Social Media Marketing
The rising of internet brought social media channels new style of online
communication into the daily life and social media shifted integration between customers
and companies. Hence, before examining social media marketing it’s essential to describe
the Social Media itself. Safko and Brake (2009, s.6) define social media as “activities,
practices, and behaviors among communities of people who gather online to share
information, knowledge, and opinions using conversational media”. Consequently, online
social networks, as very popular destinations of many online visitors, take a large part on
34

the internet. Based on Facebook Report (2014) that the most popular social platform has
1.32 billion monthly active users as of June 30, 2014, an increase of 14% year-over-year.
Social Media Marketing (sometimes calls social network marketing) covers these
online networks such as major social platforms: Facebook, Twitter, MySpace and
websites or forums which enable users to communicate each other based on similar
interests and mutual topics. Users may open an account and create their personal profiles
to connect their friends to share their thoughts. Andreasen (1995) describe social
marketing as “the application of commercial marketing technologies to the analysis,
planning, execution, and evaluation of programs designed to influence the voluntary
behavior of target audiences in order to improve their personal welfare and that of their
society.” Social marketing is an approach to individual and social change that draws on
concepts and techniques from commercial marketing. While commercial marketers
encourage consumers to exchange money for products or services, social marketers
encourage individuals to exchange unhealthy lifestyles for healthy ones (Kotler &
Roberto, 1989). The idea is that consumers will tend to buy what their friends buy and
recommend (Kenneth and Carol, 2011). According to research done by Li (2007), 50%
of adult online social network users tell their friends about products advertised. Even
though that does not necessarily include the brand recognition development, it certainly
points to the fact that the advertisements in online social networks are noticed and
interesting enough for users to share them with friends (Li, 2007).
3.3.4. Mobile Advertising
Mobile advertising tailored to and delivered through wireless mobile devices such
as smartphones feature phones and media tablets. Typically taking the form of static or
rich media display ads, text messaging ads, search ads, or audio/video spots, such
advertising generally appears within mobile websites, mobile apps, text messaging
services or within mobile search results (IAB Press Release, 2014). Mobile advertising
includes the use of mobile applications, display banner ads, games, e-mail, location based
services and mobile friendly websites. According to PwC research, mobile phone usage,
especially smart-phones are tremendous global trends and the number of ownership
therewithal the mobile advertisement spending and mobile revenue are increasing. The
35

global mobile advertising revenue is forecast to leapfrog classified advertising to become
the third-largest Internet advertising channel with almost 20 $ billion in 2014 (PwC 2014).
3.3.5. Rich Media / Video Marketing
In the most basic of definition, advertisements which users can interact with in a
web page format are called rich media advertising. These advertisements incorporate
animation, sound, and/or interactivity in any format and they can be used either singularly
or in combination with various technologies (Levine et al, 2001). Bruner and Gluck
describe this type of advertising as “Rich media ads are interactive banners that created
as animation with or without audio. This type of online ads are more eye catching and
attract attention for users. These types could be different size of standard banners and
animate a clip or video on any side of the website.” Furthermore, rich media/display
category in-game advertising are either static or interactive (Bruner and Gluck, 2006).
On the other hand, herewith of digital publishing trend and social media usage
increase, video websites and broadcasting are increasing, so video marketing become
important type of online advertising. Based on Youtube (2014) statistics, more than 1
billion unique users visit YouTube each month, over 6 billion hours of video are watched
each month on YouTube - that's almost an hour for every person on Earth and 100 hours
of video are uploaded to YouTube every minute. Digital video advertisements appear as
video commercials before, during or after video content including streaming video,
animation, games and music videos. And the other one video ads are like TV ads that
appear as in-page video commercials or before or after a variety content. Bruner and
Singh (2007) suggest that video is the hottest new format for online advertising. The high
engagement factor of video, combined with the Internet's tracking and targeting
capabilities, offers a valuable revenue stream for Web publishers and a highly
accountable method for brand advertisers to sway the hearts and minds of target audiences
(Hallerman, 2007).
3.3.6. Media Buying / Sponsorship
Media buying, a sub function of advertising management, is the procurement of
media real estate at an optimal placement and price (Wikipedia, Media buying, 2014).
36

However, growing internet usage evolved this function into the digital media. Based on
Magna Global Advertising Forecast Report (Magna, 2014) “Globally, media owner
advertising revenues grew by +3.2% in 2013 to $489.6 billion. And digital media was the
fastest growing media category in 2013, increasing 16% to $118bn and reaching a 24%
market share globally.” Eventually, it’s important to presence on popular websites and
digital media buying becoming a crucial part of online marketing structure.
Sponsorships occur when custom content created specifically for an advertiser is
placed on publisher Web sites. This content may include display ads, logos, advertorial,
or video or in video games as advergaming. Sponsorship represents the custom content
which is created for an advertiser including display advertising, brand logos (Bruner and
Singh 2007). According to IAB definitions Advertiser pays for custom content and/or
experiences, which may or may not include ad elements such as display advertising, brand
logos, advertorial, or pre-roll video (IAB 2012).
3.3.7. Affiliate Marketing
Affiliate marketing is a type of performance-based marketing in which a business
rewards one or more affiliates for each visitor or customer brought by the affiliate's own
marketing efforts (Wikipedia, Affiliate Marketing). This is the online application of a
marketing method, where one website agrees to pay another website or an individual
writing a blog a commission for new business opportunities it refers to the site. This type
of online marketing approaches are getting popular especially e-commerce websites,
which offer exclusive programs for website owners to place their ads on their website
Amazon, eBay and other large e-commerce companies with affiliate programs typically
administer such programs themselves (Kenneth and Carol, 2011). The holder of ads may
get a percentage of revenue with providing sales, registration or any lead generation such
as the number of views of pages or ads and also lead generation. The affiliate adds a link
to the company’s website on its own site and encourages its visitors to patronize its
marketing partner. Smaller e-retail firms who wish to use affiliate marketing often decide
to join an affiliate network. (Kenneth and Carol, 2011) An affiliate network acts as an
intermediary between publishers –affiliates- and merchant affiliate programs. It allows
website publishers to more easily find and participate in affiliate programs which are
suitable for their website (Wikipedia, Affiliate network). Affiliate networks can
37

substantially increase an organization's visibility. However, they have to be chosen
carefully as their reputation reflects on that of the advertiser (Constantinides, 2002).
3.3.8. E-mail Marketing
E-mail advertising is the use of e-mails by advertisers to carry out marketing
campaigns. Emails are used to generate sales, acquire new customers, notify existing
customers on promotions and sales, and to develop a constant dialogue and relationship
with customers (DuFrene, Engelland, Lehman, & Pearson, 2005). Based on Email
Statistics Report conducted by Radicati Group, the number of worldwide email accounts
continues to grow from over 4.1 billion accounts in 2014 to over 5.2 billion accounts by
the end of 2018. The total number of worldwide email users, including both business and
consumer users, is also increasing from over 2.5 billion in 2014 to over 2.8 billion in 2018
(Radicati Group 2014). A survey conducted by Harris Interactive, found that people
actually like emails based on previous shopping behaviors and preferences. In fact, 81%
of US digital shoppers surveyed said they were at least somewhat likely to make
additional purchases, either online or in a store, as a result of targeted emails. The biggest
advantage of e-mail marketing is the potential level of intimacy a marketer may reach
with their consumer, however there is a common complaint about e-mail marketing is
that most of these communications are “spam,” or unsolicited bulk email (eMarketer
January 2014).
3.4. Online Marketing in Turkey
Information and literature collection having many problems with lack of statistical
data archive for online marketing in Turkey. There are not enough significant study or
research especially for last years, so in this study only most recent data gathered for
review due to previous data differ based on source and not consistent. Both globally and
in Turkey, as mentioned before at first chapter, the internet is growing and this is
attracting advertisers with its rapidly expanding audience, extensive reach, interactive
nature and ability to target specific demographics and performance. According to
declaration of the Turkey branch office of The Interactive Advertising Bureau (IAB
AdEx-TR 2013) which operates in order to develop digital marketing industry on 43
38

countries; online ad spend reached to 20% within overall marketing sector and online
advertising investment in Turkey experienced growth of 24% in 2013 with a total value
of appx. €400 million. (see table 3.1) IAB Turkey AdEx-TR 2014 First Half Report
reveals that, digital ad investments in Turkey in first half of 2014 reached 226 million
Euro with a 20,1% growth (IAB AdEx-TR 2014).
Based on IAB AdEx 2013 report, here is the detailed segmentation of investments
for online marketing channels in Turkey;
• Total digital advertising investments which include Display, Search, Mobile,
Classifieds & Directories, E-mail Marketing and In-Game Advertising reached €395
million,
• “Display Advertising Investments‟ which are composed of advertising based on
display/click, video, sponsorships and affiliate marketing hit €150 million,
• “Search Engine Advertising Investments‟ that consist of, keyword based advertising
and search engine ad network performance advertising reached €198 million,
• Mobile ad investments had €15 million value in total with Mobile advertising display
and Mobile opt-in SMS/MMS,
• Classifieds & Directories hit €27 million while E-mail marketing and In-game
advertising investments reached €1,8 million in total. (IAB AdEx-TR 2013)
39

Table 3.1: IAB Turkey Digital Advertising Investments
2013 Full year 2014 First Half
2013 vs. 2014
First Half
Million €
Total Digital Advertising Investments 394,93 225,69 20,1%
Display Advertising Investments 150,84 85,76 14,8%
Advertising Based on Display/Click 107,84 59,72 10,2%
Video 23,48 14,93 38,4%
Sponsorship 12 6,60 11,4%
Affiliate Marketing 7,5 4,51 21,2%
Search Advertising Investments 198,41 116,32 25,4%
Keyword Based Advertising 135,64 76,74 24,5%
Search Engine Ad Network Performance
Advertising
62,77 39,58 27,3%
Mobile Advertising Investments 15,14 8,68 25,1%
Mobile advertising-display 5,54 3,47 37,1%
Mobile opt-in SMS/MMS 9,59 5,21 18,3%
Classified & Directories 26,79 12,85 8,4%
Other 3,82 2,08 17,4%
E-mail marketing 1,99 1,04 14,1%
In-game advertising 1,82 1,04 21,1%
Source: IAB Turkey AdEx-TR Report 2014, web
According to IAB Europe AdEx Benchmark 2013, online ad growth was 11,9%
(see figure 3.8) also display advertising grew 32,3% year over year (see figure 3.9), which
stated Turkey the first country among European countries. Online video is now a
significant part of display advertising and Turkey grew 13,1% with video share of display,
online video growth was 54,4% from 2012. Finally, total 2013 online video ad spending
was €28.2 millions in Turkey.
40

Figure 3.8: Online Ad Growth YOY in Europe in 2013
Source: IAB AdEx Benchmark 2013, European Online Advertising Expenditure, web
Figure 3.9: Display Ad Growth Including Mobile Ad YOY in Europe
Source: IAB AdEx Benchmark 2013, European Online Advertising Expenditure, web
41

CHAPTER 4 - METHODOLOGY
First three chapters discussed existing literatures that has shaped the background
this research. This chapter provides the research methodology under which this study was
conducted. It reviews of research methodology in business and management field, and
justifies the appropriate research methods, also discusses the organization of research and
methods of data analysis.
4.1. Research Methodology
Methodology deals with logic of enquiry and of how new knowledge is generated
and justified (Blaikie, 2000). The methodology overview of this study includes a
discussion of the predictor and predicted variables. For research purposes there are two
main types of information. Primary data is information that is specifically collected by
the researcher for a particular research situation (Tull and Hawkins, 1993). And secondary
data have information that has already been published for general or other uses, and the
researcher re-uses and re-analyses data that has therefore already been collected. Both
primary and secondary data were required to conclude research aims & objectives, as they
complement each other’s validity and reliability (Easterby-Smith et al. 2002).
In addition to answering the research questions, the purpose of this study was to
bring together a number of diverse source and viewpoints about the retail, e-commerce
industry and online advertising from both primary and secondary sources in Turkey and
the world.
- primary research collected via online questionnaires,
- secondary research through a review of existing literature and data.
Primary research was a kind of key component of this study, comprising both
business (see Appendix I) and consumer (see Appendix II) online questionnaires.
Secondary resources included a number of online and offline resources.
42

4.1.1. Research Aims and Objectives
This study aimed to analyze the use of online marketing in Turkish e-retail sector
both from business and consumers perspectives, additionally it attempted to give a fresh
view both for online consumers’ and e-retail managers’ profiles.
As mentioned at the research gap chapter, there was a need to analyze online
marketing activities of e-retail sector in Turkey. And it was necassary to identify decision
makers and managers’ profiles based on demographics, experiences and online marketing
decisions factors. However, there was also an opportunity to identify Turkish online
consumers’ demographical profile and analyze their integration with online marketing.
This study helped to fill these voids by investigating online marketing strategies of e-
retail companies in Turkey. It aimed to identify the use of various online marketing
channels and advertising types in these companies. Hence, this study also helped to find
out Turkish consumers' opinions about online marketing activities and variables of
advertising types that affect their shopping behavior. Furthermore, it was important to
consolidate the findings of research, so both business and consumers’ aspects helped to
better analyze the results. The findings of this research about online marketing can
provide benefits not only for e-retail, but also to other online business sectors.
The specific objectives of this research can be then summarized as follows:
I. To identify profiles of Turkish decision makers/managers in e-retail sector
(demographics, work experiences and online marketing strategies)
II. To identify profiles of Turkish online consumers and analyze their
interaction with online marketing channels and online ad formats
III. To analyze the use of online marketing e-retail sector in Turkey
4.1.2. Research Questions
In this study both primary and secondary data used to analyze and gather
information about online marketing and e-retail business in Turkey, the above objectives
were translated into the following research questions:
43

Q1. What is the general profile of Turkish decision makers & managers in e-retail
sector?
Q2. What is the general profile of Turkish online consumers?
Q3. What are the opinions and attitudes of Turkish online consumers for online
advertising?
Q4. Which online marketing channels and types are using for e-retail sector in
Turkey?
4.2. Sampling Design
Sampling is a process of using a small number of items or parts of a larger
population to make conclusions about the whole population (Zikmund, 2003). In this
study, population defined with two sampling. First one was the primary Business
Sampling; decision makers and internet marketing managers in e-retail business. As the
objectives of this study were to analyze e-retail sector, the respondents selected from these
companies. Therefore, the business sample questionnaire had to distribute to the right
person in a company to obtain appropriate responses. In the context of this research, key
informants should have knowledge and/or be able to give their perceptions on the strategic
orientation of company’s online business. An appropriate list was created by investigating
business network social media websites like “1
Linkedin”, local business database
“Webrazzi Database” (vt.webrazzi.com2
) and other online platforms to obtain the right
respondents whoever deal with online marketing approaches. And the secondary one
Consumers Sampling; online consumers in Turkey. This sample data was collected from
the customer list and blog subscribers of researcher’s owned e-retail website
“Gurmereyon.com3
”. Additionally, it was collected via other secondary sources, such as
online directories, social media and social channels.
4.3. Primary Research
Primary research is conducted with the purpose of dealing with specific research
objectives (Kotler and Armstrong, 2004). There are two types of primary research
1
https://www.linkedin.com is a global professional network website
2
http://vt.webrazzi.com/ is a local professional network database&directory in Turkey
3
https://www.gurmereyon.com is a local e-retail website which specified to provide gourmet products
to online users and manages by researcher in Turkey
44

Online Marketing in Turkish E-retail Sector

Online Marketing in Turkish E-retail Sector

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