Chapter 1

Introduction

Internet marketing or online marketing is a type of marketing that utilizes Internet to

deliver promotional marketing message to prospective customers. It includes email
marketing, social media marketing, Search engine marketing, display advertising as well as
mobile advertising. It consists of a number of parties: publisher, advertiser, advertising
agencies, ad server and advertising affiliate. Publisher integrates advertisement into the
online world and advertiser is the one that provides advertisement that be displayed on
publishers content. Ad agency helps generate and place the ad copy. Ad server helps
deliver the ad and track statistics.

Affiliate marketing is a form of online business in which a third party i.e. the affiliate is
awarded for every visitor it provides with the help of hyperlinks on the website. It is very
similar to paying a finders fee for the introduction of new client or multiple clients to a
business. There are various ways in which an affiliate can be compensated. They are CPC
or Cost per click, CPL or Cost per Lead, CPM or cost per thousand, CPO or Cost per order.

CPC or cost per click is the price paid by the advertiser per ad click. CPL or cost per lead is
the cost paid by the advertiser per valid lead provided by the publisher. CPM or cost per
thousand is the price paid by the advertiser per thousand ad impressions.

CPA or Cost per affiliation or Cost per order or cost per purchase is the price paid by the
advertiser per orders. It is used to make comparison across advertising media and vehicles
and can also be used to measure the profitability of a firm's Internet marketing.

Affiliate marketing and its working

Affiliate marketing is a form of online business in which a third part i.e. the affiliate is
awarded for every visitor it provides with the help of hyperlinks on the website.
It consist of 3 main parties:
Advertiser: Advertiser is a term used for an individual or a firm selling any product via
online websites and applications.
Affiliate: Affiliate is a term used for an individual or a firm promoting products of the
advertiser with the help of a website or an application.
Customer: Customer is a term used for an individual or a firm that visits the affiliate
website or the application and if he or she likes the advertisement clicks on it. The
customer is then directed to the merchants website.

1
 Figure 1: Pictorial Representation of affiliate marketing concept
Source: Prabhu and Sathpathy (2015)

Cost Per Affiliation

CPA or Cost per affiliation or Cost per order or cost per purchase is the price paid by the
advertiser per orders.
It is used to make comparison across advertising media and vehicles and can also be used
to measure the profitability of a firm's Internet marketing.

It consist of following activities:

Filling the form
Taking the estimate of the cost of the product
Signing up for the application or the website
Buying the product.

2
 Figure 2:Working of CPA system
Source: http://backlinko.com/

Companies like Flipkart, Amazon etc. have started their own affiliate program where
affiliate companies are paid a predefined rate of commission for bringing in customers to
their website. Companies that uses affiliate program are:
Online retailing companies like Flipkart, SnapDeal, Amazon, Tradus and yepme etc.
Matrimonial websites like Bharatmatrimonial, shaadi, jeevansathi etc.
Tour and travel industries like Yatra, makemytrip, Expedia, tripadviser, Ixigo etc.
Online job sites like careerbuilder, monster, indeed, GulfNaukri etc.
Some other affiliate marketers are apple, raddison, quickheal, Indiamart, godaddy etc.

3
 Chapter 2
Company Overview

Skillmate

Skillmateisan androidbasedappthatlet'syouteachyourtalents;learnnewskillsand
partnerforfunactivitieswithpeoplenearyouskillfullyinDelhiNCR.FromYogato
Drums,PhotographytoJazz,CookingtoSwimming,younameaskillorahobbyandits
there.

Skillmate is a Gurgaon based startup, founded by Mr Arjun Khera.

Key Facts and Milestones

1st runner in Times App search 2016

Featured article on Indian Express and the Times of India.
Rating- 4.9
Available on Android only.
The app was launched for android users on 10th July.

Skillmate plans to partner with affiliate program of various e-commerce portals like
Flipkart, Amazon, Snapdeal etc. They plan to show affiliate ads in their app as one of the
source of revenue.

4
 Chapter 3
Literature Review

3.1 Indian Authors

3.1.1 Prabhu and Satpathy (2015)
The authors of the research paper tried to analyze the adaptability of the affiliate marketing
in Indian scenario and to measure the future potential it holds. The research paper
explained the entire process of affiliate in detail. The research used secondary data for their
research paper from a research carried out by ASSOCHAM. The research paper explained
the concept of Affiliate Marketing and also threw light on the affiliate program followed by
various e-commerce websites. The research was divided into four different parts: top
affiliate program followed by online retail companies, by matrimonial websites, by tour and
travel industry and by online job site. The research showed that affiliate marketing would
continue to grow.
Critical Analysis
The authors have used secondary data in their study. The research looks incomplete. Each
of their topics in their research could have been a different topic of research. The facts and
figures are missing.

3.1.2 Sharma (2015)

The author of the research paper tried to prove the importance of Internet Marketing in e-
commerce. The research paper gives a brief introduction of Internet marketing. It then
explains the advantages of Internet advertising. Further it explains the various e-commerce
revenue models like CPA, CPL, CPM and CPI. The research examined various e-commerce
website like Flipkart, Snapdeal, Shopclues, Homeshop18, Fashionandyou and
Dealsandyou. The research shows that Internet Marketing is an essential tool for any
company that wants to improve their revenue.
Critical Analysis
The author did not follow a proper format of a report. There is no objective in the entire
research. Also, there is no information of the methodology implemented by the author of
the research paper. The research also fails to give facts and figures for their conclusion.

3.1.3 Gupta and Vyas (2014)

The authors tried to identify factors affecting the use of m-commerce in India. The authors
wanted to find the benefits of m-commerce in India and to study ways to expand or enlarge.
According to the research paper, m-commerce is user friendly, secure and easy to access
even in low connection area. The authors have also explained the drawbacks of m-
commerce i.e. lack of internet connectivity, language barrier, lack of awareness and less
number of mobile phone users can have an adverse affect on the business.
Critical Analysis

5
The research conducted by the authors is presented in a very poor manner. Some of the key
elements, which are essential for a research paper, are missing. There is no proper

objective. In fact, the entire methodology section of the research paper is missing. There is
no flow of facts and figures. The research lacks any data analysis.

3.2 International author

3.2.1 Janssen et al. (2007)
The research paper tried to study the impact of affiliate marketing on search engine
ranking. The research paper tries to find out how the seven different affiliate marketing
network affects the search engine ranking. The study used primary data for their research.
The authors used longitudinal research design.ie the study was carried over same
population over different period of time. It is a form of descriptive research design. The
conclusion of the research paper shows that increase in the affiliate network has been
positively influenced by the increase in the number of potential affiliate which are active in
the advertising web page. The research also highlights the importance of growth in the
affiliate network as it increases the search engine ranking of the website which further the
viewership.
Critical Analysis
The research paper explains the concept of affiliation marketing and its relation with search
engine ranking in details. The correct research design has been used in the study. The report
follows the appropriate pattern required. The objective has been clearly defined. The final
conclusion is in sync with the main objective of the study. The tables have been properly
referenced.

3.2.2 Bread and Barnes (2009)

The research tries to analyze the effect of affiliate marketing on UK financial service
industry. The 3 main topic of research were mortgage, credit card and motor insurance.
Primary data was used while conducting the study .The authors used self-completion
survey method. The authors used random sampling method. The sample size of their study
was 900 divided into 3 parts: 300 for mortgage, 300 for credit card and 300 for motor
insurance. The research showed that most consumers do not know how to research in an
efficient manner. Their research also showed that affiliate marketers were able to take
advantage of credit card section more than others.
Critical Analysis
The authors are not very clear with the main objective of the study. The objective given by
them is not very clear. They have analyzed a number of things when each of them could
have been a separate study. The tables and figures have not been referenced properly.

3.2.3 Fox et al. (2007)

The research tried to explain the essential guidelines, which need to be followed in a one to
many affiliate programs. The authors have conducted a study on 3 major affiliate networks

6
in Spain. The research tried to explain how online retailers control the business model and
promotional tools, which can be used by their affiliate. The researchers have used primary
data from the travel segment. According to the research, 2.2% of the affiliate marketers use
email marketing and 1.5 % require affiliate to communicate their policies to visitor. The
research shows that there is a significant lack of transparency in the guideline and

restriction communicated to affiliates, which increases the risk of misconduct on part of the
affiliate.
Critical Analysis
The research explains the importance of the guideline and restriction, which should be
imposed, on the affiliates. The researchers have given proper facts and figures to support
their conclusion. The objective of the study is properly given. The result is in sync with the
main objective of the study.

3.2.4 Edelman and Brandi (2014)

The research paper tried to study the risk involved with online affiliate marketing. The
authors have tried to explain the information required for online affiliate marketing as well
as incentives attached to it. According to the authors, some of the common frauds that
affiliate may indulge in are adware, cookie stuffing, typo-squatting and loyalty software. It
explains the various affiliate management structure possible i.e. in-house affiliates,
specialist affiliate and the affiliate network, which provides required technical
infrastructure. The research use primary data .The sample size is 4523.The variables used
in the study are affiliate fraud by merchant, incidence rate and the management structure.
The research shows that affiliate marketing allow sellers to advertise more efficiently via
Internet.
Critical Analysis
The researchers have explained the core case of study appropriately. The objective of the
research has been properly explained. Every statement made by the author have been
backed by facts and figures. The facts and figures used in the study have been properly
referenced. The conclusion given by the authors of the research paper is in sync with the
main objective of the paper.

3.2.5 Li et al. (2011)

The authors tried to interpret consumer emotion with respect to m-commerce. The study
tried to shed light on the experimental aspects of m-commerce regardless of the type of
consumption. The authors of the research paper conducted primary study. The sample of
293 respondents was taken. Questionnaire was formulated and distributed over email. The
study showed that emotion plays a very important role in consumer experience. The
research also showed that utilitarian factor had a negative effect on the consumption
experience of consumer.
Critical Analysis
The objective of the research has been properly explained. Every statement made by the
authors is backed by facts and figures. The facts and figures used in the study are properly
referenced. The conclusion given by the authors of the research paper is in sync with the
main objective of the paper.
7
3.2.6 Yasin et al. (2015)
The authors of the research paper tried to analyze the importance of digital marketing for
marketers as well as customers. The research also tried to find the impact of digital
marketing on sales. The authors used primary data collection method. Random sampling
was used. Sample size of the study was 150 firms and 50 executives. Correlation was used
for data analysis. The research showed that even for a startup or a local business, there is a
way to market their product via Internet.

Critical Analysis
The research paper is informative and also follows the necessary format for a research
paper. The objective of the research has been properly defined. There methodology has also
been properly explained. The conclusion given by authors is also in line with main
objective of the research.

8
 Chapter 4
Research Methodology

This paper is based on complete survey work. The survey aims at extracting knowledge and
information regarding customer satisfaction from service quality. The research was also
conducted to collect some personal information of the respondents.

4.1 TYPE OF RESEARCH DESIGN

There are 2 types of research design:

Exploratory Research Design
Conclusive Research Design.

Conclusive research design was used while conducting this research. Under Conclusive
research design, Descriptive research design was used.

4.2 SCOPE OF RESEARCH

To study about affiliate marketing and its working with respect to M-commerce.
To study about various compensation models.
To study the impact of affiliate marketing on consumer behavior with respect to M-
commerce.
To study the impact of factors affecting affiliate marketing on gender.

4.2 SURVEY DEVELOPMENT

For the research, 21 items were included in the questionnaire, which were divided into 6
parts. They are:
Demographics (1-7)
Trust (8-10)
Attitude (11-13)
Indignity (14-15)
Price perception (16-18)
Advertisement Utility (19-21)
9
 A survey was conducted to show the impact of affiliate marketing on customer behavior
with respect to m-commerce in India. The survey covered the respondents of Delhi NCR
regions only. The survey was conducted using questionnaire method. Convenience
sampling was used to obtain data. Sample includes response from friends and family.

In this research, a 5-point LIKERT SCALE was used. Respondents were asked to rate
ranging from 1 to 5 where 1 show strongly disagrees where 5 shows Strongly agree. The
collected data was statistically processed with the help of SPSS software. The processed
data was than analyzed and interpreted to get research finding.

4.3 TECHNIQUE OF DATA COLLECTION

In this research paper, primary data collection method was used. The technique used to
collect data was survey method. The data was collected via an online survey conducted
among friends and family in Delhi NCR region only.

4.4 SAMPLE SIZE

152 responses were collected out of which 35 responses were rejected as they didnt fit the
target population or the data was incomplete. Thus, a sample size of 119 was taken.

4.5 SAMPLING TECHNIQUE

Convenience sampling was used to obtain data. Sample includes responses from friends
and family.

4.6 QUESTIONNAIRE FORMULATION

For the research, 21 items were included in the questionnaire, which were divided into 6
parts. They are:
Demographics (1-7)
Trust (8-10)
Attitude (11-13)
Indignity (14-15)
Price perception (16-18)
Advertisement Utility (19-21)

4.7 HYPOTHESIS FORMULATION

Hypothesis formulation constitutes the null and alternate hypothesis with respect to each
test used in the research.

4.7.1 INDEPENDENT T-TEST

10
To measure the difference in the trust of male and female.
Ho: There is significant difference between the trust of male and female.
Ha: There is no significant difference between the trust of male and female.

To measure the difference in the Attitude of male and female.

Ho: There is significant difference between the attitude of male and female.
Ha: There is no significant difference between the attitude of male and female.

To measure the difference in the Price perception of male and female.

Ho: There is significant difference between the price perception of male and female.
Ha: There is no significant difference between the price perception of male and female.

To measure the difference in the Perceived indignity of male and female.

Ho: There is significant difference between the perceived indignity of male and female.
Ha: There is no significant difference between the perceived indignity of male and female.

To measure the difference in the advertisement utility of male and female.

Ho: There is significant difference between the advertisement utility of male and female.
Ha: There is no significant difference between the advertisement utility of male and female.

4.7.2 CHI-SQUARED TEST

To measure the relationship between trust and gender.
Ho: There is no relationship between trust and gender.
Ha: There is relationship between trust and gender.

To measure the relationship between attitude and gender.

Ho: There is no relationship between attitude and gender.
Ha: There is relationship between attitude and gender.

To measure the relationship between indignity and gender.

Ho: There is no relationship between indignity and gender.
Ha: There is relationship between indignity and gender.

To measure the relationship between price perception and gender.

Ho: There is no relationship between price perception and gender.
Ha: There is relationship between price perception and gender.

To measure the relationship between advertisement utility and gender.

Ho: There is no relationship between advertisement utility and gender.
Ha: There is relationship between advertisement utility and gender.
11
4.7.3 CORRELATION
To measure the correlation between trust and attitude.
Ho: There is no statistically significant relation between trust and attitude.
Ha: There is no relation between trust and attitude.

To measure the correlation between trust and indignity.

Ho: There is statistically significant relation between trust and indignity.
Ha: There is statistically significant relation between trust and indignity.

To measure the correlation between trust and price perception.

Ho: There is no statistically significant relation between trust and price perception.
Ha: There is statistically significant relation between trust and price perception.

To measure the correlation between trust and advertisement utility.

Ho: There is no statistically significant relation between trust and advertisement utility.
Ha: There is statistically significant relation between trust and advertisement utility.

To measure the correlation between attitude and indignity.

Ho: There is no statistically significant relation between attitude and indignity.
Ha: There is statistically significant relation between attitude and indignity.

To measure the correlation between attitude and price perception.

Ho: There is no statistically significant relation between attitude and price perception.
Ha: There is statistically significant relation between attitude and price perception.

To measure the correlation between attitude and advertisement utility.

Ho: There is no statistically significant relation between attitude and advertisement utility.
Ha: There is statistically significant relation between attitude and advertisement utility.

To measure the correlation between indignity and price perception.

Ho: There is no statistically significant relation between indignity and price perception.
Ha: There is statistically significant relation between indignity and price perception.

To measure the correlation between indignity and advertisement utility.

Ho: There is no statistically significant relation between indignity and advertisement
utility..
Ha: There is statistically significant relation between indignity and advertisement utility.

To measure the correlation between price perception and advertisement

utility.
Ho: There is no statistically significant relation between price perception and
advertisement utility.

12
 Ha: There is statistically significant relation between price perception and advertisement
utility.

4.8 TECHNIQUE USED FOR DATA ANALYSIS

4.8.1 CHI-SQUARED TEST

Chi squared test is a type of non-parametric test which is used when the data is discrete and
in the form of frequencies.

Some of the requirements essential for the use of chi-square test:

Distribution should be non-symmetric.
The values of chi-square should be greater than or equal to zero.
The shape of the distribution depends upon degree of freedom.

The various applications of chi square test are:

Test for goodness
Test for the independence
Test for equality of 2 or more population proportion.

4.8.2 PEARSON COEFFICIENT OF CORRELATION

Correlation between sets of data is a measure of how well they are related. The most
common measure of correlation in stats is the Pearson Correlation. It shows the linear
relationship between two sets of data. In simple terms, it answers the questions; can line
graph be drawn to represent the data? Two letters are used to represent the Pearson
correlation: Greek letter rho () for a population and the letter r for a sample.
High correlation: .5 to 1.0
Medium correlation: .3 to .5
Low correlation: .1 to .3.

4.8.3 INDEPENDENT T-TEST

The Independent Samples t-Test compares the means of two independent groups in order to
determine whether there is statistical evidence that the associated population means are
significantly different. The Independent Samples t-Test is a parametric test.

The Independent Samples t-Test is commonly used to test the statistical differences
between the means of two or more groups, statistical differences between the means of two
or more interventions or the statistical differences between the means of two or more
change scores

4.9 SOFTWARE PACKAGES USED FOR ANALYSIS

13
 STATISTICAL PACKAGE FOR THE SOCIAL SCIENCES (SPSS)
SPSS statistics is a software package used for statistical analysis. SPSS is a widely used
program for statistical analysis in social science. Market researchers, health researchers,
survey companies, government, education researchers, marketing organizations, data
miners, and others also use it.
Statistics included in the base software:
Descriptive statistics: Cross tabulation, Frequencies, Descriptive, Explore, Descriptive
Ratio Statistics
Bivariate statistics: Means, t-test, ANOVA, Correlation (bivariate, partial, distances),
Nonparametric tests
Prediction for numerical outcomes: Linear regression
Prediction for identifying groups: Factor analysis, cluster analysis (two-step, K-means,
hierarchical), Discriminant

14
 Chapter 5
Detailed Analysis and Interpretation

5.1 Qualitative Analysis

Age

35-50; 3% 50 and above; 5% Less than 18; 2%

25-35; 14%

18-25; 76%

Figure 3:Age

Key Findings
76% of the respondents are from age group 18-25.
14% of them are from age group 25-35.

15
 3% of the respondents are from age group 35-50.
5% of the respondents are of age group 50 and above.

Gender

Female; 32%

Male; 68%

Figure 4:Gender

Key Findings:
68% of the respondents are male
32% of them are female.

16
 Income
Less Than Rs 50,00 Rs 50,000-Rs 1,00,000
Rs 1,00,000-Rs 2,50,000 More than 2,50,000

31%

54%
7%
9%

Figure 5:Income

Key Finding:
54% of the respondents have an annual income of less than Rs 50,000.
30% of them have an annual income of more than Rs 2,50,000.
7% of the respondents have an annual income between Rs 1,00,000
and Rs 2,50,000.
9% of the respondents have an annual income between Rs 50,000 and
Rs 1,00,000.

17
 Highest Education Qualification

10th; 2%
Post Graduate; 20%
12th; 19%

Graduate; 59%

Figure 6:Highest Education Level

Key Finding:

59% of the respondents are graduates.

20% of them are post graduates.
19% are fresh out of high school.
2% of the respondents have the highest education qualification of 10th.

18
 Online E-commerce Users
Yes No

1%

99%

Figure 7:Number of online respondents

Key Findings:
The survey shows that 99% of the respondents are active users of e-
commerce portals.

User Preference
Mobile Application Only Website only
Both

30%

57%
13%

Figure 8: User Preference

Key Findings:
30% of the respondents access mobile application only to access e-
commerce portals.
19
 13% of the respondents uses website only for the same.
The survey shows that 57% of the respondents uses both website and
mobile application to access e-commerce portals like amazon, flipkart
etc.

Trust Level
80
70
60
50
40
30
20
Axis Title 10
0

Figure 9:Trust Level of User on Advertisement shown on M-

commerce

Key Findings:
68.93% of the respondents agree to the fact that they can trust
advertisement that are shown on m-commerce website or applications.
12.43% of the respondents have a neutral view to the fact that they
can trust advertisement that are shown on m-commerce website or
applications.
8.6% of the respondents strongly agree to the fact that they can trust
advertisement that are shown on m-commerce website or applications.
8.33% of the respondents disagree on the fact that they can trust
advertisement that are shown on the m-commerce websites and
applications.
Only 1.7% of the respondents strongly disagree to the fact that they
can trust mobile advertisement.

20
 Attitude
70
60
50
40
30
20
Axis Title 10
0

Figure 10: Attitude of Consumers towards affiliate marketing

Key Findings:
65.5% of the respondents agree to the fact that advertisement gets
their attention and have a positive attitude towards advertisement.
9.2% of the respondents strongly agree to the fact that advertisement
get their attention and have a positive attitude towards advertisement.
14.1% of the respondents are neutral to the fact that advertisement
get their attention and have a positive attitude towards advertisement.
7.7% of the respondents disagree to the fact that advertisement get
their attention and have a positive attitude towards advertisement.
3.4% of the respondents strongly disagree to the fact that
advertisement get their attention and have a positive attitude towards
advertisement.

21
 Indignity
60
50
40
30
20
Axis Title 10
0

Figure 11:Attitude of consumers towards content shown in

advertisement

Key Findings:
55.2% of the respondents agree that the advertisements that are
shown on mobile application insult their intelligence.
3.9% of the respondents strongly agree that the advertisements that
are shown on mobile application insult their intelligence.
12.1% of the respondents are neutral to the fact that the
advertisements that are shown on mobile application insult their
intelligence.
21.55% of the respondents disagree that the advertisements that are
shown on mobile application insult their intelligence.
7.35% of the respondents strongly disagree that the advertisements
that are shown on mobile application insult their intelligence.

22
 Price Perception
60
50
40
30
20
Axis Title 10
0

Figure 12:Impact of advertisement on price

Key Findings:
53.13% of the respondents agree to the fact that advertisement leads
to an increase in the price of the goods.
3.16% of the respondents strongly agree to the fact that advertisement
leads to an increase in the price of the goods.
16.93% of the respondents are neutral to the fact that advertisement
leads to an increase in the price of the goods.
25.26% of the respondents disagree to the fact that advertisement
leads to an increase in the price of the goods.
1.43% of the respondents strongly disagree to the fact that
advertisement leads to an increase in the price of the goods.

23
 Advertisement Utility
80
70
60
50
40
30
20
Axis Title 10
0

Figure13: Advertisement utility

Key Findings:
70.13% of the respondents agree to the fact that advertisements are
helpful in taking consumer-buying decision.
3.73% of the respondents strongly agree to the fact that
advertisements are helpful in taking consumer-buying decision.
19% of the respondents are neutral to the fact that advertisements are
helpful in taking consumer-buying decision.
6.9% of the respondents disagree to the fact that advertisements are
helpful in taking consumer-buying decision.
.3% of the respondents strongly disagree to the fact that
advertisements are helpful in taking consumer-buying decision.

24
 5.2 Quantitative Analysis

5.2.1 Independent T-test

Table 1: p-value for independent t-test

Variables p-value
Trust and age .384
Attitude and age .005
Indignity and age .003
Price perception and age .202
Advertisement utility and age .000

Key Finding:

P-value obtained is .384. Thus, alternate hypothesis is accepted while performing

independent t-test between trust and age. This shows that there is no significant
difference between trust levels of various age groups.

P-value obtained is .005. Thus, null hypothesis is accepted while performing independent
t-test between attitude and age. This shows that there is significant difference between
attitudes of various age groups.

P-value obtained is .003. Thus, null hypothesis is accepted while performing independent
t-test between indignity and age. This shows that there is significant difference between
perceived indignity levels of various age groups.

P-value obtained is .202. Thus, alternate hypothesis is accepted while performing

independent t-test between price perception and age. This shows that there is no
significant difference between price perceptions of various age groups.

P-value obtained is .000. Thus, null hypothesis is accepted while performing independent
t-test between advertisement utility and age. This shows that there is significant
difference between perceived advertisement utility of various age groups.

25
 Variables p-value
Trust and gender 0.367
Attitude and gender 0.258
5.2.2 Chi
Indignity and gender 0.169 Square Test
Price perception and gender 0.062
Advertisement utility and gender 0.037
Table 2: p-value for Chi square test

Key Finding:

P-value obtained is .367. Thus, alternate hypothesis is accepted while performing

independent t-test between trust and gender. Thus, alternate hypothesis is accepted and
that shows that there is a relationship between trust and gender.

P-value obtained is .258. Thus, alternate hypothesis is accepted while performing

independent t-test between attitude and gender. Thus, alternate hypothesis is accepted and
that shows that there is a relationship between attitude and gender.

P-value obtained is .169. Thus, alternate hypothesis is accepted while performing

independent t-test between indignity and gender. Thus, alternate hypothesis is accepted
and that shows that there is a relationship between indignity and gender.

P-value obtained is .062. Thus, alternate hypothesis is accepted while performing

independent t-test between price perception and gender. Thus, alternate hypothesis is
accepted and that shows that there is a relationship between price perception and gender.

P-value obtained is .037. Thus, null hypothesis is accepted while performing independent
t-test between advertisement utility and gender. Thus, null hypothesis is accepted and that
shows that there is no relationship between advertisement utility and gender.

26
 Variables Pearson p-value
coefficient 5.1.3
Trust and Attitude 0.387 0.000

Trust and Indignity 0.091 0.324

Trust and Price 0.138 0.133
perception
Trust and 0.268 0.003
Advertisement Utility
Attitude and 0.257 0.005
Indignity
Attitude and Price 0.459 0.000
perception
Attitude and 0.733 0.000
Advertisement utility
Indignity and price 0.087 0.346
perception
Indignity and 0.809 0.000
Advertisement Utility
Price Perception and 0.514 0.000
Advertisement
Coefficient of correlation

Table 3: Pearson Coefficient and p-value for correlation

27
 Key Findings:

The Pearson Coefficient value between trust and attitude is 0.387 and p-value is 0.000.
This shows there is a positive, low and statistically significant relation between trust and
attitude.

The Pearson Coefficient value between trust and indignity is 0.091 and p-value is 0.34.
This shows there is a positive, low and statistically insignificant relation between trust
and indignity.

The Pearson Coefficient value between trust and price perception is 0.138 and p-value is
0.133. This shows there is a positive, low and statistically insignificant relations between
trust and price perception.

The Pearson Coefficient value between trust and advertisement utility is 0.268 and p-
value is 0.003. This shows there is a positive, low and statistically significant relation
between trust and advertisement utility.

The Pearson Coefficient value between attitude and indignity is 0.257 and p-value is
0.005. This shows there is a positive, low and statistically significant relation between
attitude and indignity.

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 The Pearson Coefficient value between attitude and price perception is 0.459 and p-value
is 0.000. This shows there is a positive, low and statistically significant relation between
attitude and price perception.

The Pearson Coefficient value between attitude and advertisement utility is 0.733 and p-
value is 0.000. This shows there is a positive, medium and statistically significant relation
between attitude and advertisement utility.

The Pearson Coefficient value between indignity and price perception is 0.087 and p-
value is 0.346. This shows there is a positive, low and statistically significant relation
between indignity and price perception.

The Pearson Coefficient value between indignity and advertisement utility is 0.809 and p-
value is 0.000. This shows there is a positive, high and statistically significant relation
between indignity and advertisement utility.

The Pearson Coefficient value between trust and attitude is 0.514 and p-value is 0.000.
This shows there is a positive, medium and statistically significant relation between price
perception and advertisement utility.

5.3 SUMMARY INTERPRETATION

The main purpose of the research is to study the impact of affiliate marketing on consumer
behavior with respect to m-commerce. Independent t-test was used to measure the
reliability of the study.

By conducting chi squared test in our study, it was seen that:

Trust is an important factor and varies with respect to gender.
Attitude, indignity and price perception also varies with respect to gender.

With the help of Pearson Correlation Analysis, it is seen that:

Indignity and Advertisement utility has a positive, high and statistically significant
relation.
Price perception and advertisement utility as well as attitude and advertisement utility
has a positive, medium and statistically significant relation.
Trust and attitude, trust and price perception, trust and advertisement utility, attitude
and indignity as well as attitude and price perception has a positive, low and
statistically significant relation.

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 Trust and indignity, trust and price perception as well as indignity and price
perception have a statistically insignificant relation.

Thus, the above study shows that there has been a positive impact of affiliate marketing
on consumer behavior with respect to m-commerce.

Chapter 6
Conclusion

6.1 CONCLUSION

Affiliate marketing is a form of online business in which a third party i.e. the affiliate is
awarded for every visitor it provides with the help of hyperlinks on a website or a mobile
application. It is very similar to paying a finders fee for the introduction of new client or
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 multiple clients to a business. The various companies that offer affiliate programs in India
are Flipkart, Amazon, Snapdeal etc.

Companies like Flipkart, Amazon, Snapdeal etc. uses CPA or Cost per Affiliation
compensation method to reward their affiliate partners. CPA or Cost per affiliation or Cost
per order or cost per purchase is the price paid by the advertiser per orders. It is used to
make comparison across advertising media and vehicles and can also be used to measure
the profitability of a firm's Internet marketing. These affiliate have a pre-defined
Commission rates, which are different for different product category. The commission rate
of the companies also varies according to the customer. The affiliate partners are paid more
in case of a new customer as compared to a repeated customer. Different affiliates offer
different commission rates. Commission rates offered by Flipkart and Amazon is higher as
compared to companies like Snapdeal, Infibean etc.

Affiliate marketing has had a positive impact on consumer behavior with respect to m-
commerce. Even though, a majority of customers do not like watching advertisement in
their mobile applications, their acceptance towards advertisements is increasing. The
various factors like trust, attitude and advertisement utility are interdependent on each other
and plays an important part in influencing customer behavior towards affiliate marketing.
Consumer behavior towards affiliate marketing is also dependent upon education level,
age, gender as well as income of the consumers.

Majority of male population are of the belief that there is a need for improvement in the
content of the advertisement. However, that is not the case for female population and they
are happy with the content of the advertisement, which are shown to them. The utility of
the advertisement is also different for different gender. Each gender has a different view
about the utility of the advertisement.

6.2 LIMITATIONS
The various limitations that may have risen while preparing the project report are:

The project report was prepared under a limited time constraints.

The respondents may not have filled the questionnaire properly.
Use of articles for the explanation of certain concepts.

6.3 SUGGESTIONS
The various methods, which can be used to further improve the acceptance of users towards
advertisements, are:

Use native advertisement as the acceptance level of native advertisement is higher as

compared to normal advertisement. The chances of a user clicking on native ad is greater
as they are does not break the flow of the website or an app.
Take user permission before taking users to a different website or to a different
application download link.
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 Introduce an advertisement free edition to the users. For example, only show ads to users
who do not avail the in-app purchase in the application.

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