Executive Summary

This report aims to study the business model of Netflix and Blockbuster. We analyze why Blockbuster failed even though it has become a vast multinational business and the role Netflix played in the downfall of Blockbuster. Moreover, we also discuss the business model and strategy adopted by Netflix, which are responsible for the continued success it has earned over the years. Through our findings, we were able to conclude that the main reason for the decline of Blockbuster was it’s of lack innovation along with changes in culture and technology. Conversely, Netflix was successful because it has been innovative and disruptive from the start.


As technology progresses, business models that previously held value face complete downfall if they fail to upgrade their business strategy according to the demands of the consumers. Even future expectations need to be kept under close consideration while planning and executing the business strategy. Failure to do so has led some of the most prominent and well-established companies to the ground while others replaced them quite successfully. One such example is of Blockbuster, which was a CD/video rental service provider. During the 1980s and 1990s, it was all extremely in demand and hence, one of the top business models. But approaching, the mid-2000s, when Netflix was founded, Blockbuster got replaced effortlessly, and today it is no more than a historical entity in the world of business and movie lovers. Certain strategic failures led to the demise of Blockbuster and similarly, some strategic success which allowed Netflix to replace it and reach the top in the entertainment business. In this report, we will discuss the strategic model and paths taken by both Netflix and Blockbuster and analyse their differences which led to one’s success and the other’s fall.


Historical and cultural analysis of Blockbuster and Netflix and their path dependencies

Video rentals became common in the early 1980s. Soon in 1985, David Cooks opened the first blockbuster store. At the time, there was a lot of potential in this business venture. It was expected to spread rapidly like fire across America. Which is why investor Wayne Huizenga, who precepted the business to be nothing short of a sort of McDonald’s, decided to invest in and became the CEO. Blockbuster’s lifespan was almost the same as the lifespan of the industry of video renting. Down the lane, the company had other financial and competitive issues as well apart from Netflix. By 1993, Blockbuster had 3,600 stores across America, and by 1994, Huizenga sold the company to Viacom. Blockbuster was facing serious competition by 1995 by Hollywood video which wanted to make an even larger physical footprint than Blockbuster. This may be seen as the first hit Blockbuster took as the next year in 1996, the company issued its positive net income which was to be the last in the coming decade. Soon in 1998, Netflix launched its subscription service, but it hadn’t yet become the company’s serious competition as opposed to Walmart, Target and Best Buy, which had high DVD sales in 2003. By 2005 Blockbuster fails to overcome Hollywood Video and sales decline even though the company launched the online business a year before. Still, there was also late fee which was despised by most customers. After some other failures and hits, Blockbuster finally files for Chapter 11 Bankruptcy with hopes to reorganize and continue. Dish Network buys the company out of bankruptcy in 2011 but is forced to close down all of the company-owned stores in 2013 (Green, 2015). Other franchised stores close down as well with a single Blockbuster store left open in Bend, Oregon in 2019.

Netflix started in 1999. Their pricing model was entirely different. Instead of charging rent per movie, Netflix was offering monthly subscriptions where customers could pay a monthly fee and then rent as many movies as they wanted. Another perk unlike Blockbuster was that there was no prescribed return date for the movies, and hence, there was no issue of late fee nor was it used to generate revenue. However, to rent more movies, one had to return the previously held ones. Blockbuster did not cut back on late fee immediately, which cost it a lot of loyal customers and market share which Netflix took over (Halal, 2015).


Strategic position analysis

Blockbuster realized its mistakes too late. It decided to launch its online business in 2004, but it was still a lot behind Netflix. Moreover, it also decided to finish late fee, but that again caused a huge dent in the revenue for the company. At the same time, Viacom took its leave from Blockbuster further weakening, and to properly establish the online business, the company needed around 200 million dollars. With all this and Netflix on the rise, Blockbuster lost 75 per cent of its market value from 2003 to 2005. Soon after, it went bankrupt with all the stores closing let alone one in Bend, Oregon(Olito, 2020).

Blockbuster also tried to make the following changes. Blockbuster adopted a by-mail service which allowed customers to get CDs delivered to their homes. The company’s website also allowed customers to download and watch movies on their computers. Moreover, Blockbuster partnered software developers to make apps that customers could download on their mobiles. They also got into a joint venture with IBM to develop a unique distribution channel which would replace inventory with digital files (ACM, 1993).Moreover, they implemented a short-range scheduling model which eased shipping operations and made them efficient, and also reduced labour and transportation costs (Chung, Dawande, et al, 2011).Despite of all this, the company wasn’t able to withstand competition. The chief restructurer officer at Blockbuster gave five main reasons for the revenue decline of the company. “Increased competition in the media entertainment industry; technological advances that changed the landscape of the industry; changing consumer preferences; the rapid growth of disruptive new competitors; and the general economic environment” (David, Higgins, 2013).

Blockbuster was also drowning in debt which further led to bankruptcy. The competitors were using channels that were more attractive to consumer demands, and hence, they earned greater market shares and market value as well as replacing Blockbuster. There was also economic recession during 2009-2010 which further worsened the situation for Blockbuster. Unemployment was on the rise; thus, consumer spending had considerably decreased, which faired negatively for the business. As a result, the company had to reduce a lot of its administrative expenses and shut down a lot of underperforming stores. It was fighting a lot of financial problems in the meanwhile, Netflix expanded and loomed all over the business(David, Higgins, 2013).

Strategic choices

Ever since the beginning of Netflix in 1999, it has taken the right business moves, which have helped Netflix reach the place it has today. Started with DVD leasing services, then it moved on to streaming and finally became a global TV network. Netflix was able to recognise that streaming services are the “new beasts” (Fagerjord, Kueng, 2019).The business model continued to skyrocket and be constructive. The company’s organizational structure was such that it did not become stagnant and continued to change through time and hence, was also effectively able to face competitors. As of 2017, Netflix amassed 11.7 billion dollars in revenue with 175 million subscribers. Today, Netflix produces its content as well, which is not only limited to Hollywood but amasses other countries’ cinemas as well. It has won awards for various contents (Teece, 2010).

The current business model of Netflix allows subscribers to a huge variety of things, including movies, tv shows, documentaries et cetera on various internet-connected gadgets. Customers have to buy membership subscription and pay monthly for it. They can subscribe to different packages according to their need and price preferences. The key partners for Netflix are content creating studios from whom Netflix buys content from to stream to its subscribers. The business also makes use of aggressive marketing strategies to increase the number of subscribers. Money earned from subscriptions is used primarily to purchase more content and also to produce its own, which comes under key activities for the business. Netflix also makes a profit through strategic product placement which is another smart business move. This implies that many products are highlighted in the shows as a way of advertisement. The Netflix business model makes effective use of its resources (Teece, 2010).

Even though Netflix also started as a DVD distribution service, it did not stop there like Blockbuster. The company rightly believed in the power of data analytics and used it to its advantage profusely. It was able to build a recommendation engine using the best possible data science algorithms. So, the system could now predict DVD requests more efficiently. This made them even better than Blockbuster and other video rentals. Netflix always believed in disruption via innovation as a business strategy, and it was successful in implementing that (Osur, 2016).

Strategy in action

Netflix also targets consumers very smartly. The main target audience includes young adults to middle-aged males and females. That is a huge segment of people. It also implies that instead of focusing on demographics, Netflix focuses on psychographics to lure people in. Hence, Netflix targets individuals who are too busy or broke to go and buy movies, and they want easy, cheap fix for entertainment. Thus, the value proposition is extremely important in the business model for Netflix. The company has been able to earn so many subscriptions because it is affordable for the majority. Secondly, the services can be availed on any range of internet-connected devices, making it convenient to use. Thirdly, there’s a huge variety of genres and shows that an individual can choose from. Every user gets personalized recommendations of shows and movies, which essentially makes most people hooked to Netflix for hours on a stretch. This is because of the algorithms they use. Binge-watching has become increasingly common on Netflix as entire seasons are released at a time instead of single episodes. Moreover, the absence of ads is a huge attraction for the majority as they can stream without any interruptions. Since Netflix is investing a lot of money in making original content, this allows them competitive advantage (Osur, 2016).

Any company’s financial conditions are the most important in predicting the future success of the company. Looking at Netflix’s financial conditions for three years between 2013 to 2015, it can be concluded that the business is doing well in terms of liquidity, profitability, and its assets. The company has up to a billion dollars in cash and equivalents, which can be immediately used for investments. An organizations ability to handle short term assets to pay off obligations is determined by liquidity and it has increased for Netflix in this time interval.However, it is dependent more on inventory rather than liquid assets. Debt to equity ratio shouldn’t be too high ideally, and Netflix has a small number of 1.07. Profitability ratios show the firms capacity to make a profit in terms of revenue and assets. Data shows that Netflix is very stable and balanced in this area. This can be attributed to the company’s international expansion and the creation of original content. Shareholders’ equity has also only increased in the case of Netflix since 2013. The company has been able to control costs effectively as well. “High working net operating profit implies that the organization has a great cost control and that sales are increasing faster than costs, which delineates a profitable solution for a company.” This is not in favour of Netflix, however. The company’s costs are expanding at a faster rate than its income. Revenue and net profit also decreased in 2015 in comparison to the previous two years as Netflix had a lot of expenses due to upgrades in content quality. Efficiency calculates the generation of sales revenue in a company using its assets. A high ratio shows that the company is effectively using its assets to generate revenue. In the case of Netflix, asset turnover has been decreasing even though there is an increase in total revenues from assets. This is because Netflix is spending a lot on expanding and on creating content, thus incurring huge costs (Mazzolini, Bozzolan, 2016).

However, overall, the company is doing very well and has been able to maintain continuous development and a good level of profit. The challenge for Netflix is to maintain an increase in rates of return. If profits grow smaller, it will become harder for Netflix to fight against competitors who have a more capital and financial backup. As of now, Netflix seems to be on the right track with its international expansion and newer content coming in. Netflix has to hold more content as well so that companies such as HBO and Amazon can’t outsource it for content. Failure to do this would lead to significant losses in subscriptions and ultimately, revenues which are why their original content apart from what is coming from their clients is a great help (Mazzolini, Bozzolan, 2016).


Blockbuster was a huge hit in the limited, give or take, twenty-year period. Firstly, because at that time there was no other way to enjoy movies unless one bought the VHS tapes, so rental stores were naturally a huge hit. Then the investors that pooled in money into the business in its early years took Blockbuster to the top in a short period and the business had a total of 6000 stores worldwide in 1944. It was dealing with billions of dollars. But all this did not last long. The late fee had aggravated a lot of people. In fact, Blockbuster earned 16 per cent of its revenue which makes for 800 million dollars just by the late fee. Netflix founder Reed Hastings is reported to have said that he founded Netflix because he was frustrated by the late fees at Blockbuster. So, in its early days, Netflix would deliver DVDs right at homes for monthly subscriptions and no late fees. This was, of course, a much welcome change to entertainment consumers, so they replaced Blockbuster. Another faulty move by Blockbuster was that the company never acted on its decision of buying Netflix when it was new. They were to buy it for 50 million dollars but never did so. The company seriously underestimated its competition because it was doing well at the time with 9000 stores globally and 60,000 employees and earned 5.9 billion dollars in revenue in 2004 (Olito, 2020).

The Netflix founder, Reed Hastings, went to the CEO of Blockbuster, John Antioco, in 2000 to propose a partnership but he was laughed out. At the time, Netflix was new. Fast forward to the future, Blockbuster failed miserably, and Netflix became a 28 billion dollars company, many times more worthy than Blockbuster ever was. The biggest fault of the company, however, seems to be the late fee. It is what truly drove customers away. Penalizing its customers for profit, was a faulty move in the business model for Blockbuster. Netflix’s popularity grew by word of mouth. More and more people fell in love with the services it provided. It became trendy. This behaviour is called threshold model of collective behaviour. Plus, it helped Netflix in the coming years that online networking became easier and popular through sites such as Facebook and Twitter. Both of these were not available to Blockbuster or were ignored by the company. The organization had a very tight internal network only and this also adversely affected it (Satell, 2014).

Discussion (Strategy Choices)

Netflix has promising plans for the future as well. There are two main projects that the company is expected to pursue which catch the eye. Firstly, Netflix television and secondly, the High Dynamic Range (HDR). Netflix television would emerge via partnerships with cable TV companies such as RCN, Grand Communication and Atlantic Broadband. The advantage of this business project would be that a new market segment could be tapped. There are a lot of people who aren’t avid internet or gadget users so, they would be able to avail Netflix services via television. However, there are also complications related to contracts, licenses and permits. So, for this project to be applicable and successful, Netflix would have to acquire rights from various cable TV studios. On the other hand, Netflix is trying to develop the feature of HDR, which is a new standard for image quality. It has invested quite a lot of capital in making this feature. This essentially provides an even better watching experience than HD. If this were to be successful competitors would face a blow (Mazzolini, Bozzolan, 2016).

In order to be successful in the future as well there are some strategic choices that Netflix can make. First of all, they always need to be aware of the changing trends in consumer decision making. Hence, Netflix should look into consumer technology such as IoT systems so that they can compete with companies such as Amazon. Secondly, Netflix needs to create something that is unique to their brand and adds to consumer experience like Alexa or Siri. Many companies such as Disney are collaborating with others to create something entirely different. This is so that Netflix sticks in the life of the consumers. Hence, Netflix needs to build up a strong collaborative strategy.They can partner with these companies to set up boxes or gaming consoles (Winter, 2011).Netflix should continue keeping its subscription price low and streaming quality high so there are minimum barriers to entry and more and more people continue to join. This way they can fight off competition (Fagerjord, Kueng, 2019).The company also needs to acquire more content on the basis of what consumer demand. For example, a lot of famous movies and tv shows are still not on Netflix and other companies such as Disney and Warner Bros are coming up with their own streaming channels which could cause Netflix to lose viewership with increased competition (Snyman, Gilliard, 2019).


Netflix has a platform business model. It has four main components which are producers, consumers, providers and owners. Advantage of this model is that it is not heavily dependent on physical assets, unlike the Blockbuster business model. The focus is on digital assets instead. Digital assets comprise of data by users. Access to this data has allowed Netflix to “build a state-of-the-art customer-centric business” which is another perk in this business model. This also aids in the reduction of costs such as store maintenance and other related costs. Thus, the efficiency of the company increases. They were easily able to innovate too, unlike Blockbuster, which had zero “innovative disruption” and hence, was driven out of the market (Brunetta, Turner, Ciccone, 2017). A platform business model does not acquire other businesses or fixed assets but instead makes links with more and more user networks(Fagerjord, Kueng, 2019).Lack of innovation leads to Blockbuster’s failure (Grshon, 2013). All this and the analysis done above shows how Netflix will be able to dominate in the industry of content streaming thanks to its malleable business model.


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Networking is a linked system of different elements. A network represents a social phenomenon or describes natural operations while networking is a complex process of connecting more than two systems to give shape to the social system. Today, all kinds of electronic sociotechnical systems are known as digital networks. These systems allow processing of information flow and linkage with social systems. The techno-social system work in collaboration with human and technological factors (Dominici, Di Fatta & Cupido, 2017). A most common example of a digital network is the internet. The system appears sound and integrated with multiple technologies that are based on the internet and give rise to multiple complex interconnected systems. They have an integral role in the current era, known as the digital era. The objective of this paper is to explain the role of networking in the digital era.

 Technological progress and networking

In information and communication technology, networking holds a central place. The technological progress is continuing rapidly, thus driving new applications. Networking is an example of recent technological advancement that is attributable to three recent developments. The first is the interdisciplinary network theory. It is the science of networks that provides a broader explanation of scientific approaches linked to organizational patterns. It elaborates prevailed networks surrounding everyone. The network theory was introduced in 1960 by Stanley Milgram that was later known as six degrees of separation. In 1970 it was known as weak ties by Mark Granovetter. In 1990, the concept was further modified by Duncan Watts as small-world networks.

This approach explained network as different clusters that occur under human-made and natural systems. Later it was discovered that these small word networks are aristocratic and scale-free in nature, yet they consist of small multiple connected system and nodes. These networks were examined under math laws (Dominici, Di Fatta & Cupido, 2017). The second process explains the dominant cultural logic in prevailing time. Due to changed practices today, the organizational structures are changed, so a change in degree is common in the developing world. The networking society is structured around digital patterns and communication. Current society is living in the network information economy where circulation and flow of information are enormous and based on market forms. A network of information-based society is based on individualization.

Internet is playing a crucial role to facilitate society by offering complex networks that are working at a broader level. The rise of the network society, individualism and networked economy is supporting the whole economy (Hong, 2017). Networking system is mutually constitutive due to overlapping digital spaces. Digital transformation is an advanced concept that is linked to technology. Digital assets are changing as organizations are moving. This is involving technology and realigning technological perspectives while extending all other constituents. Digital transformation is working on improved performance of the enterprise. It is also the priority of all IT businesses. The digitalization is enhancing the business landscape, so they are reshaping at an unprecedented rate.

Digital transformation is inherent in various companies. For instance, I experienced in Alpha company that technology framework is so big that it is playing a crucial role in all processes. In the UK, all the technical processes are linked to advanced networking system (Kotarba, 2018). A proof of this is evident from the book Leading Digital, where it is found that organizations have to master in digital transformation, and due to this implementation, companies have acquired better profits. Business in the UK has embraced digitization in all aspects, some of them I experience are: capturing new opportunities in the market, offering better customer experience, streamlined business operations and expanding outreach of businesses. For example, I studied about Revolut and Blockchain in the UK are focusing on cloud computing where IT mergers are using the best practices for business and allowing enterprises to use cloud services and implement the better internal infrastructure. I am working as a technical person in the IT field, and my knowledge about networking is extended on the basis of daily experience. With several IT companies, I have experienced many projects that engaged me in networking and expanded my knowledge.

Networking has a significant scope in Darktrace in the UK, one of my friends was IT manager in this company and I gained insights on how networked participation is spread everywhere that strengthens the relationship of digital networks. This experience is further backed up by structural improvement under the mapping process of networking. The UK business companies are using networking in multiple approaches to strengthen businesses; for example, it is enabling people to exploit every digital channel and manage it to reach more customers. This point is very helpful for me because I am planning to enter into networking world that has a significant place in modern IT companies. In another past experience, I witnessed the implementation of big data analytics. It is a core framework in a network that is allowing digital organizations to create minimum data.

The role of networking is also significant in boosting customer experience because it enhances digitization in the form of personalization (Kotarba, 2018). Retaining customers is a long term success for companies, who work on maintaining technological transformation. Cloud computing allows companies to develop internal cloud infrastructure. In another case of a company, I have done my internship in the web browsing aspect that has an integral role in managing technology. The streaming of media and video conferencing are important components that are responsible for client evolution.  Another important component in networking in the digital era is the internet of things. This is the networking of physical devices, operational technology, sensors, vehicles and data analytics.

In the UK and other global countries, networking is expanded on a broader scope because all the centric technology means networking is critical to set up a business(Dominici, Di Fatta & Cupido, 2017). Few organizations have linked this transformation to their networking; for instance, ZK research discussed their digital strategy to integrate networking into the strategy of the business. This plays a central role in accomplishing digital plans for the company (Pegrum, 2010). For instance, connectivity, security, business insights and automation are some key uses. Computing is mainly server focused networking that enables the device to get connected with other devices. According to Metcalf’s law, the value of the network is proportional to the connected devices so that mean networking will be exploding. Security is another component that secures end pints and protects IT structure. The norms of a digital platform are IoT, cloud and mobility that increase the security’s effectiveness.

In my experience, some organizations witnessed malware in operations. Security is necessary to protect not only network but also digital enterprise other operations, internal environment and the perimeter. The digital era witnesses successful businesses related to networking. IT processes are automated when networking is implemented. Due to networking, connections are established because huge information is offered to the business. For instance, networking offers granular information to the shoppers, retailers and offer business insights to provide a perfect shopping experience.

Networking Significance

In the UK, multiple IT organizations place the latest technology to get rid of the traditional style of communication and networking allows a better understanding of business capabilities. Networking is the core part of any business (Ross, 2012). A survey of LinkedIn in 2017 reported that 80% of professionals think networking is very important for the business.

But, in similar research, it has been shown that the approach of networking by the businessmen is not adequate. Specifically, networking is not used by half of the businessmen when their businesses are going well(Dominici, Di Fatta & Cupido, 2017). Networking is a dual way traffic, and, to develop the relationships strong with the online community, they must always work hard to provide more than the return. There are different procedures for providing significance to the network. Like, share the content of network members on the social media platforms, mention the members, also give the link of their post. If a member posts a significant content, use its link on the business’s website to support them increase their authority and traffic. Help members of the community to contact each of them through social networks or email. The members of the network should be encouraged to share their content on the business’s website (Ross, 2012).

When online content is discussed, it is generally linked to backlinks, high rankings and SEO. But, the development and marketing of content are much more than that. By developing unique, relevant, informative and fresh content, there is an opportunity to stand the business as a strong resource online (Xu, 2018). In the start, the content development strategy should be diversified. Experiment with the media platforms that are used to publish the content. It can be social networks, other appropriate industry websites or blogs etc. There can be diverse kinds of quality content anybody can create, for example, how-to guides, articles, infographics, videos, whitepapers, podcasts etc.

The content helps to widen the network. High-quality content gets lots of likes, backlinks and shares online. Such as, if a how-to guide gives reasonable solutions to a certain problem, people of the related industry start sharing it with their networks through different social media platforms. To increase the extent of business content, relevant online groups can be joined. The basic aim is to stand on top of related discussions and observe the topic that the targeted customers are talking about. So that relevant content can be developed to attract the targeted audience (Pegrum, 2010).

Around the globe, in the businesses, digital transformation is developing the methods of organizations, whether big or small the way they operate. In today’s digital economy, digital transformation is attributable to networking. Its characteristics in management processes and manual configuration allow for the safety of the system, i.e. external threats to security. The digital business goals at the global level are based on valuable business capabilities and to align network functioning. It is a digital networking system that meets the changing scope of systems as well as the dynamic needs of the enterprise (Venkatesh, Mathew & Singhal, 2019). The demand for growing network today is based on reliable connectivity to meet the expectations of the consumer. There are several fundamental components in this regard, such as scale, speed, cloud, security and simplicity.

The scale is about investment in digital platforms that works with best-operating models. Internet of things and mobile are the substantial parts of networking, and it is important to securely connect massive platforms with distributed networks. Many organizations in the UK are moving at a faster pace due to networking and digital initiatives. The IT infrastructure establishes a business and allows keeping up with modern style (Pegrum, 2010). The networks of organizations are built to support the internal process of the company and its operations continuity. The scope of networking is based on the diversity and simplicity of applications. The simplified, automated network operations are linked to the structure of management. The networking teams are occupied with the innovative IT support that works with business capabilities (Venkatesh, Mathew & Singhal, 2019).  In another example that I observed in Cisco, IT experts use digital networking readiness model. It was related to the network planners and leaders to effectively stimulate the operations and meet challenges.


Networking priorities allow companies to take an architectural approach to manage time. Network modifications are aligned on the distributary system within the enterprise to access the data centre. Networking in the digital era is moving with a fast pace and building open standards for the interfaces. Digital transformation needs an open solution for standards to support business capabilities. A centralized policy-based protocol is essential in networking that increases automation. Due to the structural dynamic, agile networking system, a business can build its model in the digital era. It is prudent to consider networking a key part of IT architecture because it offers innovative services to companies and incorporate virtualization. The operation wide networking is increasingly implemented to help companies navigate in the transactions of the market.


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This paper aims to show that during the Great Depression, which started on October 29, 1929, and continued until 1939 when the second World War began, was a period of massive suffering for the citizens. The country suffered at all fronts; there was an exponential increase in poverty as exports and imports fell, investment in local industries reduced dramatically, and output was at a recorded low, the rate of unemployment became extremely high which contributed to the decrease in consumerism. As the condition worsened, the municipal and provincial governments, as well as the volunteer organizations, could not do much to help the citizens. Therefore, the federal government stepped in to solve the problem through the implementation of several acts, provision of relief and by creating employment opportunities. The role that the government played during the Great Depression eventually led to Canada becoming a welfare state.

First of all, it is necessary to understand Canada’s context during the 1920s to understand why it was so devastated when the stock market in New York crashed. When the first World War ended, the whole world—except the United States—had suffered massively. However, Canada soon propelled out of the slump as it began to export minerals needed in the production of goods such as automobiles and electronics increased. The mining industry saw a boom as more and more US investors became interested in mining of minerals such as zinc and copper. Not only this, “US carmakers had plants in Canada able to produce half a million automobiles a year” (Clements, 2012, p. 210) which also stimulated the Canadian economy. Added to this, the agricultural yield in the year 1928 was record-breaking. All these profited the economy, but it is imperative to note that the Canadian economy was heavily dependent on the economy of the United States. Unsurprisingly, when the New York stock market crashed in October 1929, the effects were felt profoundly by the Toronto Stock exchange as well. The Great Depression that followed was extraordinarily severe, and its effects continued to be manifested in every domain for the next many years to come, so much so that Canadian authors have termed the 1930s as the “ten lost years” and “the dirty thirties”.

During the Great Depression, Canada saw dramatic deflation as “from 1929 to 1933, Gross National Product fell by 42 per cent in current, and 29 per cent in constant dollars,” (Horn, 1984, p. 3) income in 1933 dropped to being just 51 per cent of what it used to be in 1929, and “imports by volume were down by a huge 56.7 per cent from 1929 to 1933” (Horn, 1984, p.3).While the whole world was suffering, Canada was pressed at several fronts. Trade deteriorated as well; “average export prices for all Canadian goods in 1933 were only 62.6 per cent of what they had been four years earlier…[while] import prices were still 71.3 per cent of what they had been in 1929” (Horn, 1984, p.5).It did not help that one of the economic warfare strategies employed was the placement of high tariffs and export subsidies. This caused the exports to decline and therefore, Canada that relied heavily on exporting of raw and semi-produced good suffered substantial economic losses.

At the same time, different parts of the country fared differently. Western farmers, especially the Saskatchewan—who were heavily dependent on the export of wheat—suffered most. Not only were their crops plagued by droughts and grasshoppers, but now they also had to compete with Argentina, Australia, Russia, as well as the United States. During the Great Depression, prices had fallen, and the currency was devalued, so all these countries were trying to export their surplus crops. “Prior to the Great Depression, exports of wheat and wheat flour were between 7 and 8.5 per cent of GNP, roughly a third of total exports” (Amaral &MacGee, 2016, p.6). However, “wheat exports (in bushels) fell by 25 per cent between 1927 and 1933 and the price fell by over half. The fall in our exports was due to both the quantity exported and the price falling in half by 1933” (Amaral &MacGee, 2016, p.7).Their loss can be assessed by the fact that “the total provincial income was little more than one-quarter in 1933 of what it had been five years earlier” (Horn, 1984, p.5).

A decline in agricultural export is only one component of the larger picture, but one thing was connected to a multitude of other things. As the demand for wheat declined, it negatively impacted the functioning of railways. Firms that produced capital goods such as tractors could neither continue to maintain the same output, nor did the people have the same power of buying and saw meagre sales. “Export-oriented areas and industries, miners in Cape Breton and on the British Columbia-Alberta border, forest workers in Quebec, Ontario and British Columbia: these and others like them suffered severely” (Horn, 1984, p.9).Workers in sectors such as those of finance, services or retail were usually still employed, but many of the blue-collar workers fared worse-off and were laid off. Average unemployment rates in 1933 range from 19.3 to 27 per cent, whereas in 1929, the unemployment rate averaged between 2.5 to 4.2 per cent. In May 1933, one-third of wage earners no longer had a job.

It was not just the earners who suffered. One-third of these unemployed meant that not only them, their whole families suffered. Not being able to pay for education meant that many children were taken out of schools. At the same time, fresh graduates were stepping into a world where there were no jobs. Doctors, engineers, lawyers were depressed as there were not enough people who would be able to pay for their services, especially when highly experienced practitioners were also competing. All this meant that the country was forced to take a step back in technology. Poverty in rural areas was not lesser, but it was relatively easier to bear that when you could sustain yourselves through growing your own food. So, the rural to urban migration that gained momentum in the nineteenth century stopped, and more people were likely to move to western provinces or the farmlands basically.

People in the cities had to be fed and kept alive. The population out of work and unable to feed themselves was so high that neither the provincial governments nor the non-profitable organizations could provide food and shelter to them for more than a few days. Therefore, it was “only government that could keep thousands of Canadians from starving or freezing to death. Relief, by 1935, cost the Canadian government a total cost of $173 million” (Horn, 1984, p.7).By 1933, around 1.5 million people were dependent on the government for basic needs. This number increased to 1.9 million in 1934, which shows that even though the Great Depression is said to be ended by March 1933, people were still devastated in Canada. When people could not even afford food, they went “on the pogey.” “Pogey,” that was relief provided by the government in the form of cash or vouchers.

  1. L. Mackenzie King was Canada’s Prime Minister when the Depression broke out. He took a lot of time even to acknowledge that the country was in a state of economic crisis. When he did, he made little measures to provide relief to the people. He had the mindset that the responsibility of creating jobs to reduce unemployment fell on the provinces. His unwillingness pushed him out of government, and R. B. Bennett was elected as the Prime Minister. Bennett, a Conservative, also held the same beliefs. Both King’s and Bennett’s “reluctance to tackle unemployment contributed to a fiscal collapse in the four western provinces and in hundreds of municipalities” (Struthers, 2013).However, once in office, Bennett allocated $20 million for relief programs. Work camps were part of the relief system Bennett had devised in the early 1930s. These work camps were operated by the Department of National Defence and were aimed to help young men who were otherwise ineligible to receive relief. Far from city centres, these men would get a room, medical care, and a meagre amount of $0.20 for their daily expenses, in exchange for their manual labour on projects. However, “in 1935, a protest against conditions in the camps culminated in the Regina Riot. This was Canada’s most violent episode of the Depression” (Struthers, 2013).

As a response to the federal government’s persistence that providing jobs was the responsibility that laid on the shoulders of the provinces and that people are responsible for their well-being, several reforms from opposing parties sprang out. Occurring at a provincial level, these movements’ main objective was that it was the government that initiates recovery. One of these was these were the Social Credit theory, proposed by William Aberhart. He “sought to increase consumer spending by issuing credits worth $25 a month to citizens. Not wishing to encourage idleness, these dividends could be suspended if people refused available employment” (Clements, 2012, p.218).Unsurprisingly, farmers of Alberta were thrilled by this promise. Others who proposed alternate strategies to revive the economy included,“the British Columbia Premier T. Dufferin Pattullo, the democratic socialism of J.S. Woodsworth and the Co-operative Commonwealth Federation (CCF) as well as the Union Nationale in Quebec, led by Maurice Duplessis” (Struthers, 2013).

Along with these, other groups such as “the Workers Unity League, the League for Social Reconstruction, the Relief Camp Workers Union, Jeune-Canada and the National Unemployed Workers Association” (Struthers, 2013) which used the unemployed frustrated population to participate in marches and protests did push Bennett into taking a number of measures. The Canadian Wheat Board was set up to provide shelter to prairie farmers and design strategies to market their wheat to the world market. Other acts—such as the Farmer’s Creditors Arrangement Act and the Prairie Farm Rehabilitation Act—were implemented to help ease the debt of farmers and to propose solutions to the drought their lands faced. Following this, the Bank of Canada was set up to formulate the government’s monetary policy. Moreover, Bennett proposed the New Deal, that finally reflected an aggressive approach to tackle the economic crisis, contrary to what his beliefs had been. Bennett’s new deal was supposed to deal with wages, hours of work, natural resource marketing, as well as provide unemployment insurance. Before it could be implemented, Bennett lost office, and King was re-elected who was not in favour of this act. He realized the need for the state to provide long-term relief to the citizens and in 1940, “the federal government assumed responsibility for the jobless by introducing a national unemployment insurance scheme and employment service” (Struthers, 2013).

The transition of the state to provide public investment to create jobs so that the rate of unemployment could be decreased as private investment failed to do so, were in line with the economic theories of British economist John Maynard Keynes. Keynes’s ideas influenced the National Employment Commission report (1938) and the report of the Royal Commission on Dominion-Provincial Relations (1940). When World War II broke out, Keynesian economics actually became integrated into the government policy, only to shape the country as a welfare state. Through active measures by the government and “the massive state expenditures necessitated by the war finally reduced unemployment to minimal levels by 1942” (Struthers, 2013). In the long run, the Great Depression directed the government into taking more active roles in providing people with relief, grants, employment opportunities and facilities.

Conclusively, the years during the Great Depression were extremely difficult for the citizens as well as the governments in power. Its impacts were continued to be faced for successive years. However, during these testing times, the government was pressurized by opposing parties, groups, and the public to take a more active role to think about their well-being and to create jobs through the investment so that the economy could retain its economic footing. In retrospect, “some of the developments that made Canada one of the most robust welfare state systems can be traced back to the 1940s,” (Vivekanandan, 2002)to the time when the country had successfully come out of the “bitter thirties” with the “vision to build a new Canadian society based in equal opportunities and equal facilities, with employment security for everybody in the country” (Vivekanandan, 2002).






Amaral, P. S., &MacGee, J. (2016). Trade, Relative Prices, and the Canadian Great           Depression.

Brady, A. (1940). Report of the Royal Commission on Dominion‐Provincial           Relations. Canadian Historical Review21(3), 245-253.

Clements, P. (2012). The Great Depression and the Americas 1929-39. Hodder Education.

Horn, M. (1984). The Great Depression of the 1930s in Canada (No. 39). Canadian Historical       Association.

Purvis, A. B., & National Employment Commission. (1938). Final report of the National   Employment Commission, 26th January 1938.

Struthers, J. (2020). The Great Depression in Canada | The Canadian Encyclopedia.               Retrieved May 20 2020, from              

Vivekanandan, B. (2002). Welfare State System in Canada: Emerging Challenges.             International Studies, 39(1), 45-63.




The Swedish furniture company is expanding globally. It has started business ventures in many countries under its global recognition. The home furniture retailer IKEA was started by a Sweden person Kamprad that later expanded to a titan.  The quality production and IKEA investment under private segments provide specialization of restructuring. Company is efficient in its production and specifically invests in Sweden. The estimated equity investments of IKEA in 2009 are from $15-$70 million with the observed sale value from $30-$150 millions. The investment ventures under IKEA’s personal capital are mainly in AB Company in Europe (Fröding & Lawrence, 2017). The performance of IKEA in global regions is remarkable due to retail business. This paper will discuss main marketing tactics of IKEA, its growth strategies and main reasons why it is not operating in Brazil.

IKEA, as a furniture company from Sweden, is planning to enter in Brazilian market and has started its first research station in Curitiba, Parana. In South America, Brazil is currently leading the furniture industry, holding around 63% of market share in the whole region. Furniture companies of Brazil are mainly small and micro sized with low technology and unskilled workers. The Brazilian environment and market size are attractive to many furniture companies from around the world having enough skilled workers and technical competence like IKEA and also other big brands like Bed Bath & Beyond. Entering the Brazilian market has both opportunities as well as threats for any industry (Kohl, 2015).

IKEA Business Strategies

The hundreds of stores in multiple locations are working on leadership of IKEA. The basis of marketing and business growth is accrued to the unique idea. IKEA is a value driven entity that make products for the people and provide them a variety to choose and fulfill their dreams from. The main priority of the company is to meet customer demand and gain competitive edge by providing top notch quality. This is relevant to establish a culture of satisfaction and maintain loyalty. The role of strategic position by the company is inherent, since it is related to the long run sustainability (Fröding & Lawrence, 2017).

IKEA is a successful company and following sustainable operations for its business. Its operations are expanded to different countries of the world. The reduction of macroeconomic factors by the company is central to get a streamlined growth company. This is undertaken by expanding the supply chain mechanism. The possibility of improving unique products is bright and company is employing latest technology in its manufacturing. Since a large network is playing its role for the company, there is an increased chance of complexity in its functioning. This is tackled by establishing stabilized conditions to get long term profitability from innovation.

The prominent business strategy of the company is to build foundations for growth in terms of re-investing, quality and an integrated approach. IKEA is strongly pursuing its vision to produce quality products and it never compromise on the quality standards. The steady reduction of a product price is a main strategy by IKEA. By leadership, this is considered an art that is making company’s growth enviable by the competitors.  The full knowledge regarding manufacturing, design and production activities are acquired. Production costs are reduced; low prices and high quality are the key tactics that IKEA is maintaining in the market.

IKEA has positioned itself after the global recession of 2008 as it is necessary to maintain the long term growth strategy. The increased saving is re-invested again to acquire core business competency. This is helpful to orient the directions of company and streamline its growth potential. The price reduction strategies are also stable and employed to get a forward looking strategy (Kohl, 2015).

IKEA not operating in Brazil

IKEA focuses on some specific factors before expanding into global markets. These factors are essential to run business in an effective way. The international franchising is a magnificent opportunity for the company like IKEA which is needed to expand in the market. IKEA focuses on international expansion; innovation and research and development environment that can help the company grow at international level. For instance, research is the center of the franchising plan and to enter in Brazil, IKEA is focusing on research. The role of a multinational firm is to focus on demographics, consumer attitude, aspirations, tastes and cultural roots. These specific elements provide information about their buying behavior (Fröding & Lawrence, 2017).

IKEA will open in Santiago de Chile by 2020 and it has planned to follow eight establishments in Lima, Chilean capital, and Bogota, according to BBC. The company has not found good infrastructure and high speed efficiency in Brazil and Mexico. It needs high volume markets, larger size of supply chain and efficiency in areas like Peru, Columbia, and Chile because these areas have more than 100 million people (Magnusson & Molin, 2018).

The success factors that IKEA focuses on for its development are the main elements that are not readily available in Brazil. IKEA is not expanding its business into Brazil due to several reasons. The company focuses on selling its products at random level. It mainly involves customers to sell its products. Customers play a central role to get required furniture design as own desired interior. The customer involvement is the main innovation by IKEA. Though, this idea does not always embrace success and in some places, IKEA has failed to implement this idea. In the developed markets, IKEA is listed among the low-priced big-market brand, but in developing countries where low prices are much needed, it hits the growing middle class that requires products of international lifestyle in lesser prices. In BRICS countries China already has 18 stores and Russia has 14. Also the organization is planning to open three more stores in China in Suzhou, Chengdu and Guangzhou. While in Russia their revenue increased by 11 percent in a single year.   IKEA opened its first store in India in August 2018 after a customer research of few years in the country. According to media reports, the stores first day attracted a large number of visitors. IKEA has not included Latin America in its aggressive plans of expansions due to low income population. These regions have different patterns of spending, for instance, in Latin American population; furniture is not considered a consumer commodity and the spending priorities do not include furniture (Post, 2018).

The market size and environment in Brazil is conducive for business and it has attracted many multinational companies to work. It is investigated by many researchers that how IKEA can enter into Brazilian market and how it can explore their customers. The exploring of middle class consumer might serve as an opportunity for IKEA to reach its potential customers. The growth potential is prevailed in government policies and in 2012, in Brazil, average wage ate per hour was increased from $5.5-$5.8 that helped increasing consumption of food items. This provides the role of middle class as affluent enough to help a company in growth.

For the middle class, IKEA has to aim excellence in Latin America, as it is not consistent and broad. It is globally known as a business with low prices but for the market of Brazil and Mexico, it has to go for an aspirational profile. According to Brazilian perceptions, the firm should target middle and low income population (Magnusson & Molin, 2018).

IKEA needs to target right customers in Brazil but it is unable to accomplish this. It is a main reason for no expansion and business startup. Online market in Brazil is significant and IKEA can perform very well only it targets right websites for its marketing. The potential expansion of IKEA relies in the penetration of social media in Brazil; since its people spend on average spend 10 hours on social media. High focus on family and connectivity can be targeted by IKEA. In addition to this, company can start online campaigns. It can work like to start allowing all brands to get insights about affluent consumers.

The Swedish brand IKEA is facing some difficulties in entering Brazilian market. Though it has good profitability ratios in 34 multiple countries, such as Russia, Poland and China has seen good growth rates. It has grown 10.3 per cent that is up to €2.97-billion in last year. The revenue growth rate in Sweden is estimated to be €25.17-billion with its existing stores. It has also planned to open 28 new stores in India. Their estimated goal is to reach at €50 billion in sales by 2020. Beside this performance at global level, company is facing difficulties in targeting customers in Brazil. The competition in markets of Brazil is appearing complex for IKEA. In addition to this, it is facing tough logistic structure and the taxation difficulties to operate (Post, 2018).

The internet has helped many businesses to enter and grow in the Brazilian market. The Brazilian customers are perfectly ready for IKEA to start business in their market; as increase in usage of internet in Brazil will allow the company to keep their approach of selling its products online with low prices. There are around a 100 million internet users in Brazil, which represents a major potential for an online market for IKEA.

IKEA in Mexico

IKEA has an excellent opportunity of growth in furniture market of Latin America through the online business stores, but, Latin America is far behind the other developed countries in terms of internet access for its people. In Latin America around only 45 percent of the population has the internet access which is much less as compared to rest of the world. These figures show IKEA that they cannot rely only on the online trade stores as less than half of their targeted customers has the access to their products through the internet (Edvardsson & Enquist, 2011).

Mexico and Brazil are living in turbulent times, and waiting for the implementation of North American Free Trade Agreement (NAFTA). Brazilian market is unstable due to political climate and presidential elections. IKEA is planning with its franchise partner Flabella to invest $600 million to enter in the South America. It needs physical investments in form of staff, knowledge and support to operate in Mexico and Brazil (Post, 2018).

This brand also needs to differentiate itself according to the Brazilian customer. Entering into a new market needs to target the demographics of customers.  The complex situation in Brazil is different for IKEA.  Government policies have supported the growth that has helped in increase the minimum national wage to help the low income people. In 2010, 5.57 USD per hour was the minimum national wage and it was increased in 2012 by 5.82 USD. This had supported decrease in poverty and made a large customer base for drink, food and retail sectors. In accordance with this, growth can be supported by providing prosperity to the middle class community as well.

Government schemes have been initiated to provide the ownership of consumer products like washing machines and refrigerators to the low income people. Government is also encouraging the commercial banks to offer loans or credit to more persons, particularly the poor. This tendency along with more spending by consumers and rise in minimum wage shows that IKEA entered in Brazilian market well in time. The number of customers that IKEA needs to target has increased already. Many Brazilian customers can now purchase the products and repeat the purchase from IKEA stores with variety of prices (Schirone & Torkan, 2012).

Looking into the Brazilian middle class’s rapid growth in the internet usage and household expenditure, it is eminent that there are great opportunities for the international companies like IKEA to start their business.  For the better understanding of the market, IKEA has to analyze the consumer behavior in Brazil. Brazilian customers are proven to be more eco-friendly, they are more concerned about the assembly or manufacturing of the products. IKEA is a major organization in corporate social responsibility (CSR) and dealing issues regarding environment is the organization’s major objective. The increasing number of people with growth in income indicates that more people can now be selective and particular about the furniture type they need to buy. The eco-friendly trend has already become famous in some markets of Brazil, with many supermarkets already has started selling eco-friendly products, and reduces to use plastic bags. Brazilian customers have cited that any company doing business in market should be responsible towards environment, according to a survey more than 60 percent Brazilians feel that it is the key obligation of any organization (Warren, 2018).


IKEA considers environment an important factor and takes care while manufacturing their products. They term it important that their products must be manufactured under suitable working conditions by their workers. IKEA developed its first environmental policy in 1990 and has been working for sustainability since then. It focuses on areas such as providing sustainable products and diminishing their carbon footstep. As an eco-friendly organization is so reflected in the working of IKEA. The produce flat packs furniture which allows its delivery easy from industry to market, that also lessens damage. IKEA is working to reduce their levels of power consumption since 2005 and shifting its stores towards alternative renewable energy. Thus IKEA can be a great contender to enter into a flourishing eco-friendly market in Brazil and can be a big success if the requirements set by the Brazilian customers matches the organization’s ethos.

Brazil is now the only BRICS country where there is no IKEA store. In Brazil, matters are always likely to be more complicated than others. There are some reasons that can be challenging for IKEA if they choose to start their business in the Brazilian Market. For example, Brazil has increasingly high rate of taxes for imported products, nearly 75 percent or more over FOB rate. Local businesses like Tok & Stok have also faced similar issues, but perhaps they have already improved their purchases to control the tax impact. Also the logistics in Brazil is a serious problem. Ports are sluggish where the country is huge. The transport is much expensive and limited. Moreover, IKEA can have a tough competition in Brazil as the county has already established businesses in its strong furniture market; also some of them have already a model comparable to IKEA’s. The market lobby-groups of Brazil’s furniture industry have simply averted IKEA to enter market in Brazil. As long as they do not find out the solution of these issues and develop a strong business strategy for Brazil, it may not be possible for them to open a store in Brazilian market. The good thing is that they already have established an office in Brazil, analyzing these problems and understanding the environment, customer behavior and market trends.


Edvardsson, B., & Enquist, B. (2011). The service excellence and innovation model: Lessons from IKEA and other service frontiers. Total Quality Management & Business Excellence22(5), 535-551. doi: 10.1080/14783363.2011.568242

Fröding, K., & Lawrence, G. (2017). Sustainability at IKEA. Linnaeus Eco-Tech, 67. doi: 10.15626/eco-tech.2010.008

Kohl, M. (2015). Bloom units for IKEA and ASP in California, and market in Japan. Fuel Cells Bulletin2015(4), 7-8. doi: 10.1016/s1464-2859(15)30084-5

Magnusson, N., & Molin, A. (2018). Ikea Puts Latin America, Southeast Asian Markets in Its Sights. Retrieved from

Post, L. (2018). Learn how Ikea will arrive to Latin America. Retrieved from

Schirone, D., & Torkan, G. (2012). Food in IKEA: A Strategy to Support the Core Business. Business And Management Research1(4). doi: 10.5430/bmr.v1n4p81

Warren, M. (2018). Can this robot build an IKEA chair faster than you?. Science. doi: 10.1126/science.aat9251






Humans are spending hectic and bustling lives, they have a short time to approach such commodities that accomplish their demands, and therefore marketing is the best source to get a desirable product. Marketing movement is a source to stay in touch with potential customers to satisfy their needs by providing those engaging commodities and products. Business flourished when promotional opportunities and different strategies are applied to meet the expectations of customers. These promotions are administered in different ways and advertisements also encouraged by marketers to capture the customer’s attention (Fraj-Andrés & Salinas, 2007).

Purchasing and selling movements is the origin of marketing that provides the means of conversation to customers and organizations. Different strategies can be adapted to develop a business-like including signboards, pennants, advertisement, public association; direct marketing, product installation, promotion on social media, and buy one get one free opportunity. These marketing strategies hit the consumer’s mind and emphasize them to use these products that are dealing with promotional activities. Gangai, & Agrawal, (2016) explained that if the organization establishes a vast network of advertisements, it will be essential to target the positioning of consumers.

When a company introduces its promotional strategies by using different ways, it directly affects consumer’s psychology because every customer has a different choice and demand. This psychology of consumers is helpful to meet the consumer expectations, to understand and by creating more innovative product to relax the consumers with the commodity, because consumers usually focus on such products that would not be time-consuming, readily available, fulfil their needs, and advertisement strategies also gain the attraction of users (Genchev& Todorova, 2017). Several companies follow various ways for promotional merchandise, which provide the substitution procedure to the buyer. Culture is also a well common factor that affects the marketing strategies and assists to promote any commodity because it examines the behaviour, features, and self-individualism of humans. Hulten, & Atwal, (2010) mentioned the cultural properties implement on individual demand and need. Organizations need to implant such promotional activities that would not hurt the other cultural values because every culture possesses its customs and traditions.

Every organization has to introduce its product by informing all features to captivate the possible buyers. The company can adopt various techniques to notify the essential elements of the product. Pamphlets, samples, internet websites, publications methods, electronic media also fascinate the users to consume the product. These are conventional methods but effective ways to promote the product (Jerman, &Završnik, 2013). These ways leave a long and lasting impression on the consumer’s mind and compel them to use. All advertisement techniques create a sense of purchasing into consumers. Besides this, the features, ingredients, quality, and price must be mentioned in the advertisement. When a company provides the necessary information of the product through publication, it assists in gaining the consumer’s demand and in reaching the company’s target level.

Celebrities play a criticalpart in the commercial purpose, and gain the trust and promotion of the product. Celebrity attachment has a motivational effect on consumers. Most people follow their ideal celebrity. The followers want to use the popular product of their personality (Griffith, 2017). The company needs to be aware of the needs of its buyers and bring changes to the product according to the user’s demand to compete with the business among the other rivals. A conversational method toward the buyers is also helpful to manufacture the desirable and profitable commodity to run the business efficiently.

Fraj-Andrés, & Salinas, (2007) discussed that market competition is becoming worse with time because the marketing strategies are improving to obtain the consumer’s attractions. The organization gives preference to the consumer’s psychology. The company should focus on consumers’ thoughts, emotions, ideas, expectations, ways to fulfil the need, and also give an alternative source in case of skipping the first one product by changing its ingredients, or manufacturing methods. The organization also keeps it in mind the environmental conditions because it directly interacts with the needs and demands of buyers. Promotions of different offers are also an effective way to get the target consumers and interact with the consumer’s psychology.

Psychology directly influences the marketing tools; it establishes a way that developed the business by understanding the consumer’s expectation. Consumer psychology is a helpful subject to be aware of the companies with the consumers need and critically analyze their expectations and prepare the source for development to the company. Psychology also encourages people to purchase the product. This study also analyses the habits, customs, and traditions, preferences of the followers, and craft research on people’s behaviour, which makes it helpful to formulate the alternative source for the buyers which meet their expectation level (Gangai& Agrawal, 2016).

An experienced and honest marketer uses psychology’s legal and ethical techniques to achieve the attraction of the buyers. Although marketing and psychology have an inverse relationship, when we examine the needs of people by using psychology, it creates a close relationship between them. Psychology is helpful to promote the marketing attempts that flourish the business.

With theincrease in internet adaptation, (E-Marketing) like online, web, and digital platforms have expanded the business. These are modern techniques to access the customer. Internet marketing can be conducted on wireless media or by email. There are four-dimensional strategies available in electronic marketing like electronic mail marketing, web marketing, mobile marketing, and online marketing provide a promotional tool to convert the perception of consumers toward the product. This type of marketing offers a variety of technology to engage consumers with commodities (Hulten& Atwal, 2010). This is the most advanced feature to introduce the product in front of customers that provide the online facility and save time.

In this type of marketing, bargaining cannot be done, so it is an easy and safer way to gain maximum profits. It provides a global approachability. It’s a comfortable way of marketing with respect to conventional marketing, and it facilitates the consumer and marketer equally (ChandraSekhar, 2012). E-marketing provides a list of relatively products with its price list but also presents the complete awareness to people to encourage the beneficial outcome. E-marketing just needs a limited but high-speed internet connection, and complex websites, to gain the consumer’s viewpoints.


The current study attempts to focus on marketing tools that influence consumer behaviour. Marketing techniques can change the behaviour of consumer due to their outreach, and they spread the message to a targeted audience.


The specific purpose is to identify the role of marketing tools in influencing consumer behaviour.

The first chapter of the study is the introduction. It is about problem statement and objective of research. The second chapter is the theoretical framework. Multiple theoretical concepts and critical definition of marketing and consumer behaviour will be explained. The third chapter will describe the literature review. Extensive literature review of scholarly studies will be included to gather crucial evidence and facts about marketing tools and their influence. The last chapter will be about concluding remarks of study.




Under multiple theoretical concepts, this paper will discuss key themes related to marketing.

The behaviour of consumer pertains to critical concepts related to consumer, buying motives, consumer involvement and the decision to change its preferences. Consumer behaviour is widely the study of persons, or companies and the processes customers used to search, choose, use and dispose of services, products, ideas, or experiences to satisfy desires and its effect on the customer and society.


Apparently, the customer is easy, yet studies show it is complex to analyze, since irrational elements are significant to alter the wants, needs, and demand of consumers (Boulding, &Staelin, 1994). The term customer is strongly related to cultural, social and psychological factors that impact consumer behaviour.

Consumers versus Customers:

The term consumer is an individual who involves typically the activities of search, chooses, utilize and dispose of the services, products, ideas, or experiences. Whereas, the customer is particular in terms of company, brand, or shop. It reflects individuals who regularly or customarily buy a specific brand, buy a specific company’s product, or buy from a particular shop. So, an individual who purchases Nike shoes or who uses Levis clothing is a customer of these companies (Jerman&Završnik, 2013).

Need – Want – Demand

Need is a necessary element for people to live and survive. A want is the desire of people that can be current or in future. Demand is also desired that relates to the consumer when they need a product. Wants and demand can be differentiated on the basis of desire. A desirable product can change wants and allow customers to change their preferences.

Consumer Motive:

Consumers have a motive for buying a specific product. The rationale is a powerful urge, feeling, desire, emotions and instinct that develops the purchaser to make a decision to purchase (Babu, 2016).

Buying Motive:

It is described as, those considerations or influences which give the urge to buy, provoke action or decide choice in the buying of products or services. This motive is generally controlled by social, psychological and economic influences etc. (Barutçu, 2007). The buying motives can be classified into two types, (i) patronage motive, and (ii) product motive.

(i) Patronage Motives:

These can be described as impulses or consideration, which influences the individual to particular patronage shops. These motives can also be categorized as rational and emotional as like product motives.

Rational motives are such motives that come up when deciding a place depending upon the satisfaction of buyer that it provides a wide selection, latest designs, offer better after-sale service etc. (Ashraf &Shahzadi, 2017).

Emotional motives that influence a consumer to purchase from particular shops, without any proper reason. For instance, the consumer may be just wanted to buy from his favourite market.

(ii) Product motives:

These can be described as those desires, impulses and considerations that provoke the customer to buy a product. These are further classified into two types on the basis of satisfaction nature.

Rational Product Motives are described as those urges which come upon the basis of proper evaluation and logical analysis. The buyers decide rationally after detailed valuation of the purpose, available alternatives, cost benefits and same valid reasons (Makkar, 2009).

Emotional product motives are those urges that influence the customer on the grounds of his emotions. The person doesn’t think about the reason or analyze logically the desire of the purchase. He buys any product to satisfy his pride, urge to instigate others, ego-sense, and his wish to be unique.

Why Study Consumer Behavior:

This study supports every person in the world, as all our customers. It is essential for merchandisers to understand customers to succeed and survive in this competitive environment of the market (Chen&Zhou, 2017). Following are the reasons which highlight the significance of this study as a discipline;

Importance in Daily Life:

The reason for analyzing a study is to support someone to understand its contribution better. The idea behind consumer behaviour study is the cause of the part it plays in human lives. People spent most of their free time in the markets, shopping or involving in other leisure activities (Su & Tong, 2015). People usually pass their extra time in thinking and knowing about services and products, talking about them with their friends, and following commercials related to such products and services through different media channels. The utilization of them considerably shows the lifestyle of people. All such reasons develop the study needs.

Relevance to Decision Making:

Consumer behaviour is taken as the functional discipline, as many decisions are importantly influenced by their behaviour and possible actions. There are two perspectives which seek function of its information are societal and micro views.

The macro or societal perspectives use the information of consumers to collective-level confronted by society or mass as a whole. Consumer behaviour has a considerable effect on the level and quality of the living standards (Sarstedt& Lehmann, 2017). The micro perspectives engage consumer understanding to help an organization or firm to achieve its targets. The persons involved in this fieldwork to know consumers for the purpose to be more efficient at their duties.

Consumer Involvement:

Several consumers are identified to be more engaged in shopping and products than others. A consumer who is much engaged with a product would take an interest in getting a lot of information about it before buying. Thus he studies catalogues in detail, compares models and brands available at multiple stores, asks questions, and requests for recommendations (Qureshi et al. 2017). Hence, consumer involvement can be described as a resounding state of knowledge that inspires consumers to attend to, seek out, and learn about the information of the product before purchasing it.

Reasons for Consumer Involvement:

Following are the factors that affect consumer involvement in the markets;

  1. Product Factor;

The consumer involvement increases as the level of observed risk in the buying of service of the product grow. It is expected that people will believe more engaged in the purchase of a house for them instead purchasing a shampoo, it can be a more risky purchase. Differentiation of product influences involvement (Loureiro, 2013). The relationship grows as the quantity of alternatives increases. The reason behind this is the reality which consumers think the variety that means more significant risk. The happiness a person finds by using a service or product can also affect involvement. Some products can be a more substantial source of joy for people than others. Coffee and tea have comparatively a high level of satisfaction value than let’s say hand wash soaps.

  1. Personal Factors:

The three personal factors are needs, self-concept, and values that affect the amount of consumer involvement in a service or product. Celebrities, for instance, present specific values, self-image and needs. They use to utilize services and products that reveal their living style. The get much engaged in buying expensive products like imported cars, designer shoes and clothing etc.

  1. Situational Factors;

The situation in which something is got or utilized can create emotional involvement. The purpose of buying or event of purchase influences involvement. For instance, purchasing a pair of shows for their own self is very less involved than getting a gift for someone very close.


A process of communication that can implement, develop, and evaluate driver of persuasive communication in relation to a current and potential customer. It can be linked with customers, employees and stakeholders. The marketing process involves the exchange of offerings, so it brings value to customers and advocacy campaigns and business activities that can actively change consumer behaviour (Loureiro, 2013).

Marketing Tools

Marketing tools are inherent to contribute to the marketing mix, which is a set of tactical and controllable device for a company to target audience. The concept of the marketing mix relates to execution and planning steps that are employed by a company to influence the demand of its product (SAM, 2017). In 1953, Neil Borden introduced the concept of the marketing mix that generally takes the sense of different factors that can influence the decision of the consumer to buy a product. In an effective marketing strategy, the tools of marketing acquire central space under the marketing mix. These are designed to meet the objective of a company to market its products, thus gain value.

Frame of Reference

What is 4P’s

The four P’s are Product, Price, Place and Promotion. The 4Ps’ of the marketing mix is common in marketing, and collectively they establish the customer value. They also position the target market of customers. The 4P model was first introduced by Jerome McCarthy in 1960 with a framework that is used for business to design campaigns and strategies that can promote goods (Labeaga et al. 2007). This framework is useful to increase the conversions and targeted audience because each P is valuable to influence the decision of the consumer.


 Product is goods and services that a company offers to its customers. The product can be quality, variety, brand name, features, design, services and packaging. A product is a physical good that provides a unique experience to the consumer. The users of this product can be attracted to the features, packaging, name, support, quality of ease of use. The transaction of this physical product influences the whole buying experience of the customer. Ideally, a product should be compelling for consumers. To that end, marketers tend to the understanding product life cycle and plan different methods to deal with these life cycles (Iglesias et al, 2011). The type of product determines what should be the price, and how should it be placed and promoted.


A cost that consumer pays for the product to use it is its price. Marketers link the products’ original price and perceived value because they have to seasonal consumer discounts, supply costs and the price of competitors. If the product is intended to be more luxury, its price level is increased. The marketers also determine that whether discounting is valuable because it sometimes draws in more customers (Pulido Polo, 2018). Price is a critical element to consider because the often high priced product is viewed as unnecessary by the user unless it is a luxury brand. Key pricing strategies are used by businesses such as competitive, bundle, economy, subscription, psychological and discount.


This decision allows the company to sell and deliver a product on the market. Business executives, in this regard, tend to get their products in front of most readily consumers. Placing a product in different stores is about to garner the attention of the user. This concept is related to the placement of a product on TV shows, web pages or in advertisements. The distribution of product is placing, and this concept is based on resellers, wholesalers and intermediary businesses. The decisions about placing allow the business to set up product stores for display. Placement helps to enhance reviews and attract customer. Some businesses set up catalogues to display product effectively. It is a useful activity to analyze competitor’s policies and get the idea to differentiate.


Public relations, advertising and promotional strategy are some critical ways of promotion. These activities allow consumers to participate in buying actively. This P of the marketing mix set a value for the consumer and show them the need for the product. Marketers unite placement and promotion together to get the audience involved. In today’s’ digital age, development and place are acting elements of online and offline activities (Kumar &Rajan, 2011). It is a mere communication tool for people to choose a product, so it encompasses the entire marketing function. Promotion allows people to set target according to their needs. In this form, communication will enable people to know what they need and how will they benefit from it.


Influence of Marketing Tools

Marketing tools have a significant influence on business. To establish a business, various techniques are applied in which some conventional methods are planned like signboards, pennants, pamphlets, newspaper, brochures, through a video station, and phonic directories are some strategies which are used by organizations to promote selling quantity and capture the target consumers. All methods are just adopted for a flourishing business (Goldsmith et al. 2010).

Electronic media has also impacted on marketing methods. Different software is used to attract consumers. Mobile marketing, email marketing, and online marketing technologies are established for these purposes. These are advanced and modern marketing tools. The online partnership is to run associate marketing and sponsorship as a marketing tool.

Web investigation is also a necessary element of digital marketing that produces pieces of information for internet users following online movements. Through this method, companies can possess the positioning of buyers (Iglesias et al. 2011).

Social media marketing is a subgroup of E-marketing. Social media also reacts to online marketing and has the similar ambition to meet the expectation level of consumers for business promotion. Social media facilitate the marketer by granting the equipment like online journals, twitting, posting, linking, liking, binding, bookmarking, sharing, networking, and commenting on various websites like Facebook, YouTube, Twitter, and different additional social media platforms provide the strategic resources to consumers and marketers (Išoraitė, 2015). Social media marketing offers a source to organizations and marketers by offering a low rate of advertisement with an attractive profit.

Marketers follow this kind of tool to keep in touch with users and to make a communicative relationship with them to be conscious about their needs and demands toward the product. People usually use social media to be in touch with relatives, comrades, and to be aware of new fashion and trends and also to discover the product reports. This platform informs the consumers about upcoming updates toward their beloved product (Schnerrer, 2014).

By using social media, platform organization wants to engage demographic consumers to deliver the marketing thought. Marketers should follow passionate, thrilled, delightful, engaging, true, and genuine marketing tools. Promotional drives also promote marketing affairs because these strategies help shift the buyer’s attraction to the product. All marketing tools are supporters and promoters of relevant brands or products and have an impact on online and offline marketing services.

Empirical Study

Organizations use leverage methods to capture users through online and offline facilities. Marketers should prepare such tools that affect emotional feeling. Psychological techniques are much helpful to stay connected with the emotional feeling of buyers. When any brand has an emotional attachment with its customers, it will never lose them all. Marketers should apply promotional tools for business growth; these tools are booklets, business cards, informative broadcasting, merchandising strategies, and use of websites (Goldsmith et al, 2010). Several elements provide the complete detail about the product, and which highly supports the characteristics and features of the commodity. Business cards show the trademark and stamp of the business and provide contact to the supporters and audience. All marketing strategies have a basic purpose of increasing the selling level and encouraging new customers. They also provide awareness to buyers, but the price also must be controlled under full attention for the growth of the business (Hulten& Atwal, 2010).

Elaboration Likelihood Model (ELM)

An internal communication tool is a persuasion that is a convincing argument backed up with valid reasons. John Cacioppo introduced the elaboration likelihood model that seeks to explain the process of humans’ stimuli and how it works to change the attitudes, so behaviour. ELM elaborates results when a certain amount of effort is used to communicate a message, so people react. A high elaborative model scrutinizes the content of a message because it is backed up with high motivation. Users invest time to know what is in the message, so they make a pronouncement. Marginal processing of routecontributes to elaboration of low level in case user is not scrutinizing a communication to gain efficiency (Griffith, 2017).

Some communication forms used in this model can be attractive for people; they give endorsement to people. For instance, enticing imagery appeal to people, imagery related to food, travel, or free products attract people and forms their attitude. High motivation makes their decisions, and they get high capacity (Francisco et al, 2014). Marketers incorporate ELM in their designs to increase access of the user. It is a form of communication that is not risk alienating, but it frames behaviour by persuading them.


 Analysis of Empirical Data

Extensive literature has discussed the role of marketing tools to influence consumer behaviour. This section will discuss some key themes under marketing tools that change the behaviour of the consumer.

Sales promotion

A study accomplished by Genchev& Todorova (2017) discussed marketing tools, i.e. sales promotion as an effective strategy to win new clients, so increase profit margins. The sales promotion acts as a drive to attract new customers while retaining old; this marketing activity adds value to the products. Authors discussed that it stimulates the effectiveness of intermediaries and stimulate purchases of consumers. The study investigated 60 participants about sales promotion impact and found out that it is an effective instrument that directly impacts the behaviour of the consumer. It is also found out as the most suitable communication channel that gets information about the user’s perspective of marketing.

Marketing communication is an active activity to make the differentiation. They enhance firms’ capability to shield itself from price competition in future. Boulding, &Staelin (1994) discussed that advertising and sales force are key instrumental variables of marketing that represent differentiation measures. These variables represent their own price elasticity which is helpful to attract a large consumer base. Future differentiation is carried out with the basic premise of communication that provides positive messages. The study found out that unique messages and strong conversation allow the customer to believe over price and quality of the product. Sales promotion leads to more price elasticities and generates positive message about the product. A marketing plan that constitutes product offerings allows desirable attributes, so customer acquires desirable attributes.

Schnerrer (2014) elaborated about sales promotion in a book that it can work most importantly in marketing communications. The channel of marketing through sales promotion can attain specific objectives as compared to any other marketing communication tool. Sales promotion theory and practice has a central position at the global level because it is based on retail outlets and guarantee success in influential B2B businesses. The element is invaluable in advertising due to its capability to enhance consumers’ interest. Under sales promotion techniques, advertisement and communication acquire huge involvement and build customer base (Ercis&Yildiz, 2019). Advertising promotion is the main aspect of integrated marketing because it is linked to inherent communication.

3.2. Sampling

Sampling has been proved as an important part of marketing research. Sarstedt,& Lehmann, (2017) examined research about sampling techniques and how they work for advertising. Authors observed 1028 studies from 2008-16 from leading advertising journals. The sampling procedures have been proved beneficial for the estimation of customer involvement. Researchers focused on the sampling fluctuations that relate to fundamental aspects of sampling in the advertisement. Chen, & Zhou (2017) described the free sampling process as a digital format that is a common business practice.

The marketing framework undertakes sampling to offer the consumer a good experience with products. Word of mouth is an online marketing strategy that enhances product visibility. The research study explored other literature to know key dimensions of marketing and drawn that free sampling has amplified sales and has a strong role in marketing (Coelho et al, 2018). CNET under free sampling lead allows a large volume targeting for amazon in the online market. Free sampling has a positive impact on products sales, and its role in online word of mouth cannot be ignored. This study suggested free sampling strategy has an interplay with low-cost methods and word of mouth strategy in marketing.  


A fast way to promote products and employ effective communication tool is coupons under marketing. Coupons are a nice marketing tactic and marketing tool that develops brand image and enhances customer loyalty. It needs modern infrastructure, and coupon campaigns are the main source of data tracking to build a loyal audience. Kumar &Rajan (2011) highlighted the role of coupons in a study that they are an emerging trend in the marketing perspective that attract customers and provide a profitable business model to marketers. Social coupon service is a part of the analytical model that works for profitability and recover any shortfalls occurred in profit. Authors used data from three different business endeavours and worked on customer acquisition that can be a future orientation in marketing.

Išoraitė (2015) analyzed the framework of coupons under theoretical aspects and how they can be used as sale promotion tools. Coupons are readily available tools for shopping, provided by marketers or companies that give flexibility and discount to purchase customer’s favourite products. Coupons are an important source to follow the latest business trends, so they promote sales. Online shopping, advertisement and marketing strategies frequently use coupons as a part of a sales tool. Hulten& Atwal (2010) illustrated the concept of promotional tools for retail marketing that inspire consumers buying patterns. The report discussed the reputation of samples and coupons to change consumer behaviour and found out that two main behaviours are related to it. One is brand switching; second is customer loyalty. On the basis of multiple kinds of literature, marketing is found to be playing a special role to change consumer behaviour under these promotional tools (Esmaeilpour, 2015).

Buying Behaviour of Consumer and Brand Loyalty

Thebehavior of consumer is linked to the new-fangled concept of advanced marketing. ChandraSekhar (2012) explored the dimensions of consumer behaviour under the decisive aspect of advertising. The upshot of the consumer is brand loyalty. It asserts influence on consumer behaviour because the quality and pricing of a product help consumer decide about purchase decisions. Finding a product and sticking to the brand is a brand value that is determined by quality and price, so it changes consumer behaviour. The image of a brand is the main element that determines purchasing power and decisions related to it. Ashraf, &Shahzadi (2017) examined the relationship of marketing variables like brand image and consumer buying behaviour. The study undertook key dimensions that play a major role in determining consumer behaviour; for instance, marketing tools act as big communication methods with consumers that shape their decisions.

Branding is influential for consumers to take valid decisions. Brand knowledge allows consumers to choose healthy dimensions about the product by knowing its value (Qureshi & Malik, 2017). The loyalty of a brand increases as consumer ages, so family culture and social factors play a significant role in determining the consumer decision. Authors of this study analyzed the research by finding gender the main variable that can impact consumer buying behaviour. The consumers are status-conscious, so they carefully select products and use brands when it comes to their choice (Ercis, 2019).


The study has investigated the behaviour of consumer and change in decision making due to the influence of marketing tools. The promotional tools are significant to shape consumer behaviour that leads to brand loyalty. Influencing factors that can shape consumer attitude are linked to marketing, perceived quality perception values. The study analyzed consumer behaviour, needs, wants and desires. Different kinds of motives are worthy of explaining consumer attitude and preferences. Marketing is a consistent framework that allows various channels of advertising to work and shape consumer attitude. The study reviewed extensive literature to find out its objective, which is to analyze the marketing tools in influencing consumer behaviour.

This study found a strong relationship between marketing tools and consumer behaviour due to mediating variables such as promotional tools and techniques of marketing. Each association needs to present its item by illuminating all highlights to enthrall the potential purchasers. The organization can embrace different methods to advise the fundamental components of the item. Handouts, tests, web sites, distributions techniques, electronic media additionally allow clients to expend the item. These are ordinary strategies yet powerful approaches to advance the product. Psychology straightforwardly impacts the showcasing apparatuses; it builds up a way that built up the business by understanding the customer’s desire. It is a useful concept to know about the organizations with the purchasers’ need and basically break down their desires and set up the hotspot for advancement to the organization.

The theoretical concepts contributed to explaining the consumer perception, attitude and behavioural framework, which is influenced by marketing. The targeted market is based on positive perception about a product, so that company can create a better product to respond to consumer wants and needs. This study is found to be helpful for future research because it has explained key dimensions of marketing under promotional tools that work coherently to alter consumer behaviour.


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  1. Discuss the theoretical arguments in relation to neoclassical and managerial motives of takeovers

The ‘neoclassical’ set of theories suggests that firms will engage in takeovers if this leads to an increase in wealth for the shareholders of the acquiring company. The increase in wealth may arise from the following areas

  • Economies of scale. M&A brings together two or more firms into one. Consequently, the merged entity increases its size, and as such the realization of economies of scale is envisaged.
  • Firstly, it is argued that lower interest rates are charged because larger firms are usually perceived as being less risky than smaller firms. Secondly, it is argued that the transaction costs involved in raising finance become proportionately lower as the amount of finance required increases.

However, the ‘managerial’ school of merger motives upholds the view that management will seek to maximize its on utility whether or not this is consistent with the maximization of shareholder wealth. Firms will maximize sales not profits. Firms maximize a sustainable growth level, at which profitability is constant. Moreover, in conditions of imperfect competition improvements in efficiency are likely to be offset by increases in costs due to management slack. Hence, mergers will probably not improve profitability, even if efficiency gains are expected to occur.

  1. To what extent do mergers and acquisitions (M&A) impact on the wealth of shareholders?

We live in a low inflation and low interest rate situation, so it is a big incentive for the corporates to take transformative decisions.  One of the main objectives of mergers is to maximize the shareholders’ value by the means of increase in dividends and increase in share prices, so the shareholders can enjoy the capital gains. But, is almost two third of cases, mergers produce wealth gains for target shareholders and more or less zero gains to acquirers. the cumulative abnormal returns (CAR) of target firm has been increased to 14.8% after merger and the bidding firm loose a significant 2.2%, whereas the combined firm neither created nor destroyed the shareholders’ value. Also, the long term performance is improved when mergers involve inefficient bidders, payment not just made by cash and earnings are not diversified. Shareholders of the acquiring company experience a marginal loss of voting power, while shareholders of a smaller target company may see a significant erosion of their voting powers in the relatively larger pool of stakeholders. Moreover, if equity is used as a method of payment instead of cash, then merger deals earn lower returns because of the fact that equity signal to the market that the equity is overvalued.

  1. Using one example, discuss how event study methods can be used to test hypotheses in Finance?

An event study is a statistical method to assess the impact of an event on the value of a firm. Finance theory suggests that capital markets reflect all available information about firms in the firms’ stock prices. Given this basic premise, one can study how a particular event changes a firm’s prospects by quantifying the impact of the event on the firm’s stock. Finance scholars have developed the ‘event study methodology’ to perform this type of analysis – in its most common form, with a focus on stock returns, in less used forms, with a focus on trading volumes and volatilities. The steps for an event study are as follow:

  • Definition
  • Criteria
  • Normal and Abnormal Return Measurement
  • Estimation Procedure
  • Testing Procedure
  • Empirical Results
  • Interpretation

Suppose that there are two factors that affect returns: Size and B/M (Book Equity, Market Equity). We do not know whether there is a stable or linear relationship, then what to do? Sort all returns into 10 deciles according to size. Compute the average return of the 100 portfolios for each period; this gives us the expected returns of stocks given the characteristics.

For each stock, study:

  1. What size decile the belong.
  2. Find in what B/M decile.
  • Compare the return of the stock to the corresponding portfolio return.
  1. Deviations are called “abnormal” return.

In 1989, Frank and Harris published a study that examined the effect of over 1,800 U.K. takeovers on shareholder wealth in the period 1955–1985. It shows that around the merger announcement date targets gain 25 to 30 percent and bidders earn zero or modest gains.


Discussion 6

There is a strong relationship between content & personalization. Persona’s play an integral role in the making of a material as the content nowadays revolves around the persona rather than the other way around. The content is turning into a secondary thing. Adding to these is the channel mix that plays a very pertinent role in effective outreach of the material. If the persona is impactful & so is the research as well as content yet the channels are chosen are a flop, it would make the whole predicament worse. Hence it is an essential element to understand that all the three are made and executed in the most efficient manner. Likewise, if the content is strong, yet the persona is a flop, that will also ruin the final target. It can only be achieved if the execution of all the three elements is flawless & made in the most appropriate and according manner as required. Hence we conclude that there is an essential relationship amongst content & personalization that needs to be realized while formulating either one of them. This is the only way to attain perfection that will the product presented to the viewers in the end.

Discussion 7

The tools, as well as tactics used in terms of Earned Media, are paid promotions on the media. These can be the TV & Social Media ads that are displayed on various mediums that impact the overall process. The aspect of not giving any medium the advertisement to run can turn out as reactive, and In this case, they can turn out in the form of negative reviews. The proactive approach solves the problems even before the issue is set to originate. This makes it dead before anyone notices. The reactive approach responsively deals with the issue after it occurs. It does not respond prior to the point originating & the problem is dealt with via paid promotion on all tools that are available. Comparatively, the later seems weak as due to the reason that if the news that wasn’t supposed to get out is out.There is little that one can do in that predicament if it is over. Apart from them, influencers from the social media also play a role in building the trust of the rand. These tools are useful, considering the modern day needs of integrated PR that includes all mediums to focus on the brand.



The business that has been chosen for the purpose of this report is called AT&T. It is situated in the United States. The company is a digital media giant, especially in America, where it widely provides mobile, telephone, and television services all across the country. The company is also a manufacturer of technological gadgets and telecommunication devices. It is prominent not only in America but around the rest of the world as well. The full form of AT&T is American Telephone and Telegraph Company, and it was founded in 1885. The company is related to Alexander Graham Bell himself, who invented the telephone. Today AT&T has made its position at the top of the Fortune 500 list of companies in the world. It is headquartered in Dallas, Texas, United States(Cleverism).

Customer Segment

As discussed above, AT&T is a giant telephone, mobile, and television services providers in the United States. So, it deals with mass markets and has a vast customer base. It provides different packages that offer a different combination of these services. The company also offers wireless network services such as the internet. The customer base has reached and surpassed 100 million people. There is a wide range of customer groups that avail AT&T services, which include private subscribers to retailers to government organizations as well. AT&T uses demographic and psychographic strategies to reach more people(Bhasin, 2018).

Value Propositions

The services that AT&T provides are well established and reliable. Their plans and packages are also attractive to customers as they fit different customer demands, such as affordability ranges. The support network of the company is also quite durable and is accessible online as well, apart from the stores and over phones. AT&T is also attractive for business owners precisely as well because, for them, AT&T offers services that have higher efficiency and provide more security to them as well. Hence, overall, it generates a lot of value for its customers. However, there is rising competition for the company as well. Many domestic companies offer the same services for cheaper rates and may be more attractive to consumers in that regard(Cleverism).


The company is widespread throughout the United States and various spots around the world as well. In America, there are a total of 2200 stores and many other retailers. Another approachable network is the company sales team and the website, both of which are easily accessible. The sales team can be contacted through phones or online. Subscribers can also manage their accounts and adjust changes by logging into the website. The app for AT&T is also available on android and iOS both. Personal statements and apps are the most convenient for users(Cleverism).

Customer relationships

As discussed above, customers can directly contact the supports team of AT&T via stores or phones. Other than that, they can manage their accounts either on the website or the app. Closer relationshipsare needed by the customers that are businesses because they have specific requirements that need to be met so, they are in more frequent contact with the sales and marketing team. Apart from all this, the company also maintains a presence on social media platforms such as Twitter and Facebook, where it posts updates and other important news(Cleverism).

Revenue streams

Revenue is generated through the mobile, telephone, television, wireless services that the company provides to private users and businesses. The business solutions that AT&T offers are especially fruitful for the company and earned them an annual revenue of 71 billion dollars in 2015. Business solutions include a wireless network, security services, and speedy broadbands. The second place is secured by entertainment services, which include television services, and thirdly, revenue is generated by mobile and other wireless services (Cleverism).

According to the 2018 annual report, the overall revenues for AT&T were 170.8 billion dollars. This was a 6.8% increase from the previous year. The revenue segmentation seems to be different here, though. “The Communications segment can further be divided into Mobility, making up 39% of revenues; Entertainment Group, making up 25%; and Business Wireline, accounting for 14%.” (McFarlane, 2018).

Key resources

As digital service providers, the critical resources for AT&T are its workers, suppliers, and cell towers and cables. The working team includes its sales team and marketing team, and also workers who take over the installations for customers. If these critical resources were to be segmented, then the cables and cell towers are resources for value propositions. The sales and marketing team is required for revenue streaming and customer relationships. The middlemen or retailers are also a vast resource as they help in integrating luring in more customers for the company(Cleverism).

Key activities

Critical activities for AT&T include providing mobile, telephone, television, and wireless broadband services for customers in America. A unique combination of these services, including security, is offered to business owners as well. As technology is advancing day by day, the company also remains up to date. It continues to come up with more innovative ways to provide their services, which make things easier for their customers. They also build trust in their customers through an energized team of workers (Mccorcle, n.d).

Key Partnerships

AT&T has numerous partnerships with many businesses, both big and small. The selection of partners is made based on the advantages the organization would provide the company, such as enhance its services or products. The partnership contracts are mostly structured in a way that the partner is authorized or has to provide AT&T services to its customer base and clients. In return, the partner company receives bonuses, discounts, funds, or other support from the company. Some partner companies include “IT solutions company Merrill Hill Lynch, mobile data service provider DatXoom and IT infrastructure firm Alliant Technologies.” AT&T also has supplier partners who are again both big and small. Technology partners are also present that provide computer and network devices.

Cost Structure

AT&T incurs a lot of cost by providing its services as they have to be installed and maintained via various channels and networks. So, support services take in a lot of expenses. Costs for employees are also skyrocketing. Being such a large company, AT&T has over 10000 employees, so their salaries incur a lot of costs as well. Moreover, expanding and maintaining the business across the entire country takes a lot of operations and marketing costs.

Business model pattern

There are five distinct business models, which include unbundled business models, extended tail business models, multi-sided business models, free business models, and open business models. The business model that most resembles AT&T is the unbundles business model.

The unbundled business is which groups several models into one. The three main parts of an unbundled business model are customer relationships, product innovation, and infrastructure management. It is apparent why this is the best fit for AT&T. The company also focuses on building relations with customers as only then will they be able to convince them to acquire their digital services. A huge focus in AT&T is on innovation when it comes to the services they provide. The aim is to make things simpler and more accessible for the customer base, whether it be private consumers or business owners. Infrastructure management includes tasks related to “building and managing facilities for high-volume, repetitive operational tasks.” Since these three conditions satisfy for AT&T, we can conclude that it follows an unbundled business model. The company has to continuously work towards bettering customer relationships, coming up with updated services that are also cost-effective, and they also have to face competition as well. Plus, telecommunication or mobile communication companies generally do follow an unbundled business model (Yatskevich, Matyunina, 2018).

(Mousavi, 2020)


Yatskevich, O., and Matyunina, J., 2020. Five Business Model Patterns For Online Enterprise. [online] Web and Mobile Development Company – CodeTiburon. Available at: <> [Accessed 10 May 2020]. 2020. How AT&T Successfully Maximized Revenue Through Indirect Channels. [online] Available at: <> [Accessed 10 May 2020].

McFarlane, G., 2020. How AT&T Makes Money: Mobility, Video, Broadband, And More. [online] Investopedia. Available at: <> [Accessed 10 May 2020].

Bhasin, H., 2020. Marketing Strategy Of AT & T – AT & T Marketing Strategy. [online] Marketing91. Available at: <> [Accessed 10 May 2020].

Cleverism. 2020. AT&T. [online] Available at: <> [Accessed 10 May 2020].

Cathy Mousavi. 2020. AT&T Business Model. [online] Available at: <> [Accessed 10 May 2020].


The word metaphysics is derived from Aristotelian works and is defined differently by many. Generally, it means the stream of the academia of Philosophy that deals with the reality’s nature. There are many differences and similarities between the concept’s modern and contemporary approaches.

One of the significant differences is that where the modern metaphysics might be limited to “obstinate attempts to think clearly and consistently” (James), the contemporary metaphysics is harder to define as it encompasses more areas such as actions and behavioral patterns that make the term harder to frame in a limited way. Moreover, the evolution of metaphysics expands to a vast period, and the contemporary philosophy’s “hyper-specialization” of presenting a big picture of the concept poses an issue (Moore). The modern version delves into lesser oversimplification. On the other hand, one of the significant similarities between modern and contemporary is the intention behind studying the branch: getting to know the nature of the world and the present humans in it. This similarity unites the different periods’ version of metaphysics firmly.

The renowned German philosopher Martin Heidegger left a mark in the field of philosophy, especially about hermeneutics, phenomenology, and particularly existentialism. His existentialist concepts reject the notion of dualism while focusing more on holism by disregarding the duality between body and mind, including the theories of “consciousness,” “experience,” and “mind.” He stressed the concept of Dasein that is a German word meaning “being there”. His work primarily deals with finding authenticity or Eigentlichkeit that is German for “own-ness” by taking an ontological approach.

His work “magnum opus Being and Time” searches for the meaning that is given to the concept of “being” and its connection with a human. He posits that this search only occurs because of the personal questions. Dasein exists because it is the “place” where the Being is found. This idea is different from the traditional school of thought that proposes that the existence of Being is possible as the “substantial” pulls together all the bodies and entities (Aristotle). The idea of Dasein encompasses the “way” human being is, as Heidegger mentioned, “The essence of Dasein lies in its existence.”

Moreover, the theorist argues that the concept and the manifestation of Dasein are unlike that of any substance in the sense that the former is not fixed while the latter is. This can be evidence using a human being as they acquire unfixed variable places and locations. It appears that the site Dasein acquires might be virtual, and that is not to say that it is not real or empty. Here virtuality entails that the place and space consist being that ontologically permit for Dasein. Dasein and the world we live are interconnected: Dasein cannot exist absolutely without the world, and neither can the world exist without Dasein as it allows for the experience that is necessary to feel the existence.

The existentialists look towards feelings such as anxiety to enhance their points. Anxiety isolates the Being as it builds up “angst” that triggers the feeling of loneliness, and that leads to the Being individualizing itself. Heidegger believes that a significant method to grasp the concept of Dasein in its original form is to expose it in the field of human being “moods.” This entails that Dasein is embedded in the idea of moods. Existence is not merely confirmed by the fact that human beings can think (Descartes) but is actually cemented by the fact that human feelings such as anxiety suggest the existence of self and being. Hence, human moods are given sheer importance in the concept of explaining existentialism.

The teachings of Heidegger are recognized in academia, and the French philosopher Jean-Paul Sartre has some similar teachings, but there are some areas of dissimilarity as well. The similarities in their works are there as well. Both appeared to be inspired by the great philosopher Edmund Husserl. Sartre encountered his writing in his youth and got attracted to phenomenology. Likewise, the works of Heidegger are suggestive of the fact that he too was a follower of Edmund Husserl, but the views of Sartre and Heidegger diverge when the latter’s works omit the usage of consciousness. Where the concept of consciousness can be traced in Heidegger’s works, he never utilized the direct usage of this word. However, on the other hand, Sartre rigorously used this concept, especially its offshoot idea of “intentionality.” Sartre’s view of the idea suggests that “consciousness is not to be identified with a thing (for example, a mind, soul or brain), that is to say, some repository of ideas and images of things. Rather, consciousness is nothing but a directedness towards things”. He believes that the notion of consciousness is not a substance; that is a bit similar to Heidegger’s ideas. Sartre recognizes the existence of humans as “for-itself” and the beings as “in-itself.” This puts his ideals forwards that consciousness might be considered as “nothingness” as it does not encompass the idea of “being conscious of.” This elaborates that if it is established that consciousness is not a “thing,” usual natural laws do not apply to it, particularly when it is not limited by the restrictions of “identity” and is not a “substance.”

Sartre believes that “Intentionality” exhibits itself. He points out the distinctive features of the passive, “static,” and “active desire and want of a being to not only observe and see the world but also be a participant and project him/her self. He gives the example of marriage: if one intends to commit in matrimony, then a commitment is required that becomes the part of life, but it works in two ways: by becoming a part of oneself and by becoming a part of the partner. However, the act may appear to be authentic. There is underlying inauthenticity involved concerning the act of projecting one’s own self. The person displays him/her self as being “married” in the future, such as being a fixed entity. This is where the tension arises. The act of projecting oneself in the future entails absolute freedom that is actually not there. Hence, this proposes the view of imbalance that the person appears to be what he/she really is not. However, contrarily, the projection also entails that “something” is being projected, and the fact that it is a thing that suggests the insufficiencies in the projection. The projection is indicative of both freedom and otherwise. Here, the act becomes preposterous, and the concept of “existential anxiety” surfaces because the being tries to contradict itself by aiming to become “for-itself-in-itself” as the act of freedom is proclaimed by a thing that is limited by its very nature of being a “thing.” Hence, Sartre believes that the existence of humans is in a persistent state of disconnection by delving towards its inauthentic self. Another similarity is found in the points of Sartre and Heidegger as the former’s ideas resonate with the latter’s ideas of inauthenticity being present.

The extent of their dis-similarity can be proved by the exchange of letters they had in the 1940s. Sartre, in his famous lecture titled “Existentialism is a Humanism,” suggested that the actions of humans are the definitive factor that defines his/her humanity. When another theorist, Jean Beaufret, wrote a letter to Heidegger inquiring about the connection he suggested existed between the existence of human beings, Heidegger’s response suggests that he denied the French form of existentialism that suggests the great divide between Sartre and Heidegger’s ideological conception of the concept. It is important to note that although Heidegger rejected to be recognized as an existentialist in the letter, it is commonly understood that he was addressing the French version of it as his many works and lectures point in the other direction as he gives the examples of moods, “anxiety,” “existence” and “crowd” to prove existence.


Sartre and Heidegger also disagree on the nature of the existence of Being. Sartre’s views are in sync with the traditional aspects of Descartes. It is to be noticed that from the view of Heidegger, Sartre’s view on existence resulted from the ideals and values presented in the humanism movement of the Renaissance era that propelled the human feelings to stick to a supreme level. Sartre’s definition of existence entails that a human is whereas Heidegger’s definition incorporates the language of Dasein that is in a state of connection with the world, and the nature of that connection is inseparable. “Man is not the lord of beings. Man is the shepherd of Being” (Heidegger 1993:245). This confirms the difference in the philosophers’ differences in the way they perceive existence, and hence their differences in the theories of existentialism arise.


It is interesting to note that even basic knowledge about human existence is still a hot topic in philosophy, and the transition from modern to contemporary metaphysics might seem subtle, but when looked carefully is reflective of the changes brought by time. The content on existentialism is essential in understanding the human world and can help in answering many crucial debating topics, including the necessity of material things for a thing. Also, the ideas discussed to shed light on the broader debate surrounding God and Immortality as the ideas of internal and external appearances and presences are brilliantly described by both Heidegger and Sartre. Hence, we can study these debates and teachings not only for their intended purpose but also for solving individualized daily life dilemmas efficiently.


Moore, A.W., (2012) The Evolution of Modern Metaphysics: Making Sense of Things

Hazlett, Allan, Contemporary Metaphysics

Internet Encyclopedia of Philosophy

Encyclopedia Britannica


European colonists called themselves civilized people, whose purpose of colonizing Africa was to make “barbaric” Africans became civilized. But if there is no difference between the behavior of “civilized” European colonists and “barbarians”, can they still be called civilized colonists? The essay would indicate three aspects of the scene which are the natural environment,the word “incomprehensible” and Marlow’s words“he called them enemies!” how to associated with colonialism.

The muzzles of the long six-inch guns stuck out all over the low hull; the greasy, slimy swell swung her up lazily and let her down, swaying her thin masts. In the empty immensity of earth, sky, and water, there she was, incomprehensible, firing into a continent. Pop, would go one of the six-inch guns; a small flame would dart and vanish, a little white smoke would disappear, a tiny projectile would give a feeble screech—and nothing happened. Nothing could happen. There was a touch of insanity in the proceeding, a sense of lugubrious drollery in the sight; and it was not dissipated by somebody on board assuring me earnestly there was a camp of natives—he called them enemies!— hidden out of sight somewhere.(20)

Samet Guven indicated a viewpoint that is “Conrad also shows how a civilized man turns into a savage when the profits are taken into consideration. His novel reflects the realities of the world in the 19th century, that is, the Europeans regard Africans as primitive and immature to colonize them.”Heart of Darkness shows that the European colonizers used the high ideals of colonization as a cover to help them to viciously  plunder wealth and casually kill Africans.

Marlow sees a warship firing randomly into the continent where maybe there is nobody. The malevolent faces of the European colonists are exposed through Marlow’s account of this incredible attack. “In the empty immensity of earth, sky, and water, there she was, incomprehensible, firing into a continent.” Marlow sees the natural environment which has the sky, the water, and the earth are silent that contrast with gunfire. And the gunfire is discordant sound which breaks what was supposed to be the quiet home of the African. Furthermore,“low hull,” “thin masts” contrast with the empty immensity of the surrounding environment to show European colonizers who are just a small part of nature not only casually kill Africans but also break the silence of environment. European colonizers pretend to be colonialists who had lofty colonial ideals but they are doing what barbarians do。

“Incomprehensible”is used by Conrad to indicate the ridiculous things of the European colonialist. The word does not explain the practical facts or opinions that Marlow sees , but rather indicates that Marlow cannot explain the phenomena what he sees. In other words, Marlow’s idea of colonialists is that they are civilized people, who are mainly for their own interests, but they will bring civilization to the African colonies. At least Marlow does not think that the colonists are also barbarians. So he is shocked by the barbarism of the European colonists after he saw these what is called “civilized” people firing randomly into the continent. Conrad explained that the European colonists not only robbed the African’s property, but also destroyed their lives and revealed the dark hearts of the colonists through Marlow’s narration。Meanwhile, Conrad points out that the absurd behavior of the colonists is an act of destroying the nature by comparing the description of the ships and guns of the European colonists with the huge natural environment.

Furthermore, at the end of the passage, Marlow says“ it was not dissipated by somebody on board assuring me earnestly there was a camp of natives—he called them enemies!— hidden out of sight somewhere.” Marlow cannot understand why the men on the ship are firing into the continent , which seemed to be deserted. He asked almost everyone on the ship, and no one can explain to him. This scene reflects that when the European colonists are shooting, they had no clear target or idea, but they just attacked tentatively. It also reflects the aimlessness even bewilderment of European colonial life in Africa, as they have been swallowed up by the power of the jungle. Thus, the European colonists, who has been swallowed up by the power of the jungle had become barbarians, which only wanted to plunder the wealth with the power of barbarism. They do not care about the value of life, as their nature of civilization has been replaced by greed.

In summary, Conrad reveals that the Europeans pretended to be colonialists not only pillaging the land and wealth of Africans, but also killing them with violence and cruelty. At the same time, Conrad also writes about the cruel human nature of the colonialists, the hope that the great greed will eventually be defeated by the mysterious forces of nature. Europeans claimed to want to “civilize” the African continent, their actions spoke otherwise: they were interested solely in gaining wealth and did not care how they did it, or who was killed. The European colonists are no longer “civilized” because their own civilization had been defeated by the power of the jungle, which means greed. They pretend to be colonists but  treated Africans cruelly, so they were not real colonists but “savage” people completely occupied by desire.



1.Post-Colonial Analysis of Joseph Conrad’s Heart of ›


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