Statement of the Problem
Regular physical activity is essential for preventing chronic diseases and reducing the risk of premature death Studies show that higher levels of physical activity correlate with improved wellbeing, with the most active individuals facing the lowest health risks Notably, the greatest health improvements occur among those who transition from inactivity to regular exercise.
Exercise is widely recognized as an effective means of enhancing physical and emotional wellbeing Research indicates that yoga may offer health benefits comparable to, or even exceeding, traditional exercise for both healthy individuals and those with health conditions (Ross and Thomas, 2010) As awareness of the advantages of a healthy lifestyle grows, the health and fitness industry continues to expand With rising healthcare costs, consumers increasingly understand the financial benefits of prioritizing good health over the expenses associated with treating lifestyle-related illnesses (Warburton et al, 2006).
Maslow's hierarchy of needs suggests that after fulfilling physiological needs, individuals seek safety, which encompasses health and well-being Once these foundational needs are met, the desire for belonging and social acceptance emerges Many people join gyms not only for physical and mental health benefits but also to connect with others and feel part of a community This growing trend in the fitness and yoga industry in Vietnam highlights the increasing competition among firms, which must continuously innovate to attract and retain customers.
In the age of rapid information technology advancement, the media landscape has expanded significantly, with the Internet experiencing the most remarkable growth Since its inception, the Internet has been instrumental in transforming various facets of daily life, offering unparalleled advantages that enhance communication, access to information, and connectivity.
Thanks to the Internet, society is growing faster and stronger The more developed the society, the more important is the role of the Internet
According to a WeAreSocial report, by January 2018, over 4 billion people were using the Internet, representing 53% of the global population, with 42% actively engaging on social media Additionally, more than two-thirds of the world's population owns a mobile device, with a significant majority utilizing smartphones.
As of January 2016, Vietnam's population reached nearly 94 million, coinciding with a significant rise in internet usage among its citizens On average, Vietnamese individuals spend nearly 5 hours online using computers and 2.5 hours on mobile devices, primarily engaging with social media With approximately 47.3 million social media users—about 50% of the population—around 35 million actively participate on these platforms, and 29 million access them via mobile The average time spent on social networks is 2 hours per person, indicating a robust online presence that presents new business opportunities and innovative customer engagement strategies.
In recent years, consumer behavior has shifted significantly, with customers increasingly seeking product information and services online before making purchases Consequently, businesses must recognize and leverage the opportunities that digital marketing offers Digital marketing channels enable companies to effectively engage with targeted audiences at a cost-effective rate, providing immense value in the process.
Although digital marketing has been around for nearly 30 years since the term was first coined in the 1990s with the launch of the Archie Search Engine, research in this field remains limited in Vietnam The potential of digital marketing is not fully leveraged, highlighting the need for more studies As global and local marketing landscapes evolve, it is crucial for businesses in Vietnam to conduct further research in digital marketing to gain a competitive edge by better understanding customer behavior.
This research investigates the impact of digital marketing on consumer behavior, specifically focusing on how it influences choices regarding fitness services at California Fitness and Yoga Center (CFYC) in Ho Chi Minh City Given the scarcity of studies examining this relationship in the context of rapidly advancing technology, this study aims to contribute to the field of social science The findings will not only enhance understanding within the fitness industry but also offer valuable insights for future research Additionally, the results will provide actionable recommendations for businesses, particularly CFYC, to refine their customer engagement strategies.
Objectives
This study aimed at learning the application of digital marketing in motivating consumers to choose fitness services at CFYC
The study was expected to complete through archiving specific objectives including:
(i) analyzing the current situation of CFYC and the application of digital marketing in the company
(ii) suggesting solutions regarding optimizing the effectiveness of using digital marketing at CFYC from a management perspective.
Research questions
In line with the three specific objectives, the central questions to be examined are:
2 How is the reality of applying digital marketing in CFYC?
3 What are the recommendations to improve the use of digital marketing at CFYC?
Scope of the study
The study focuses on investigating people who are currently members of California Fitness and Yoga Center, including students, parents, workers, etc
This research focuses on individuals utilizing fitness services at CFYC, exploring the impact of rapid advancements in science and technology on marketing strategies within the fitness industry.
Research Methodology
The research was conducted with the qualitative approach through the following steps:
Preliminary research explored the theoretical foundations of digital marketing and its applications, utilizing observation and expert interviews to assess the impact of digital marketing on consumer attitudes towards advertisements A quantitative approach was employed to gather data, concluding insights into customer perceptions of digital marketing ads Data collection involved a questionnaire featuring 12 items related to informativeness, entertainment, credibility, and irritation, measured on a Likert scale from 1 (strongly disagree) to 5 (strongly agree), along with 6 demographic items including gender, age, occupation, income range, online time, and the channels through which participants discovered fitness club information All collected data was processed and analyzed using Excel.
Structure of the study
Chapter 1: Theoretical Basis - This chapter reviews relevant studies to establish a comprehensive overview of definitions, concepts, and theories pertaining to the topic This foundational analysis aids in developing the theoretical framework and hypothesis model.
Chapter 2 explores the current state of digital marketing within the fitness industry at CFYC, highlighting significant findings that enhance the researchers' understanding of existing challenges and opportunities in this sector.
Chapter 3: Conclusion and Recommendations summarizes the key findings of the research, presents appropriate solutions, and addresses study limitations while suggesting directions for future research This chapter emphasizes the logical synthesis of the results and proposes potential remedies for the identified research problems.
LITERATURE REVIEW
Theoretical basis
Digital marketing (DM) involves promoting products or services through digital technologies, primarily online, but also via mobile devices, display advertising, and other digital platforms According to Chaffey (2013), it utilizes technology to enhance marketing efforts and better understand customer needs Since the 1990s and 2000s, the evolution of digital marketing has transformed how brands leverage technology for promotion The significant rise in mobile device usage in 2017 led to increased internet connectivity and social networking, prompting companies to recognize the critical role of digital marketing As digital platforms become more integrated into marketing strategies and daily life, digital marketing has emerged as a universal and effective approach.
Digital marketing techniques, including search engine optimization (SEO), search engine marketing (SEM), content marketing, influencer marketing, and data-driven marketing, are increasingly gaining popularity Additionally, strategies such as social media marketing, social media optimization, email direct marketing, and campaign marketing are essential for effective online engagement and brand visibility.
Digital marketing has evolved to include non-Internet channels, such as SMS and hotlines, which distinguishes it from traditional online marketing This broader approach allows for effective engagement with audiences through various digital media platforms.
1.1.2 Some features of digital marketing
Digital marketing performance can be easily and effectively measured using tools like Google Analytics These tools provide insights into the number of clicks and impressions from various ads and channels, the duration of customer visits, and the points at which users exit the website This data allows marketers to evaluate the effectiveness of their campaigns more quickly and accurately.
Effectively targeting desired customers is crucial for businesses, as it can significantly enhance the impact of marketing strategies and boost sales By utilizing digital marketing techniques, companies can generate interest and demand for their products and services, tailor advertisements to specific segments, drive customer engagement, and concentrate efforts on those with genuine needs, ultimately reducing advertising costs.
Digital marketing enables businesses to analyze, test, and optimize their campaigns effectively By leveraging tools such as Google Analytics, Clicky, Statcounter, and Adobe Marketing Cloud, companies can identify which channels yield the highest click, impression, and conversion rates This data-driven approach not only enhances campaign performance but also aids in conducting comprehensive marketing research.
Customer interaction is essential for motivating product and service choices, as well as fostering brand loyalty By gathering feedback and insights from customers, companies can enhance their offerings, making customers feel valued and appreciated This engagement not only boosts customer loyalty but also strengthens brand credibility.
1.1.2 Digital marketing and Traditional marketing
Traditional marketing, widely recognized and prevalent, employs non-digital methods to promote businesses, contrasting with digital marketing, which leverages digital channels to attract customers This article explores key comparisons between the two marketing approaches.
Table 1.1 Comparison of digital marketing and traditional marketing
Methods The Internet, digital platforms, social media, etc
Space Not restricted by national and territorial boundaries
Limited by national and territorial boundaries
Time 24/7 year-round exposure is possible
24/7 year-round exposure is not possible
Response Immediate response and interact with the audience
Take long time to respones Sometime impossible
Segment can easily be targeted
Specific customer segment cannot be targeted
Cost Reasonable and controllable High
Can only be assigned once
Data Storage Customers‟ data can be easily gathered and stored with unlimited number
Data is hard to gather and stored
Campaign Can be easily changed and innovated
Once campaign prevails for a long time
1.1.3 Some most-used Digital Marketing channels
Table 1.1 Some digital marketing tools and channels
The process of getting traffic from unpaid search results
Able to get targeted traffic
Google Ads Google‟s pay- per-click service that draws traffic to
Could be expensive depending on keywords
Google‟s websites certificate from Google
Cost is controllable recommendations could be distractive
Facebook Facebook advertising allows business to reach people based on location, age, gender, interests etc
Free tutorial and certificate from Facebook
Could be expensive depending on user‟s experience
Website The process of using website for marketing
Potential to reach wider audience
Place and time flexible Interact between consumers and firms
Information could be considered unreliable
Unreliable connection is bad for business
Email The means of marketing using personalized email sent to customers
Able to test before send
Cost-effective Flexible in time
Could be annoying Could be undelivered
Require to be concise Could be annoying Could be ignored
1.1.4 Application of Digital marketing in business
In today's business landscape, traditional marketing has been largely replaced by digital marketing, driven by significant technological advancements and evolving market dynamics This shift has positioned digital marketing as a crucial tool for brand development and enhancing website traffic for companies.
Digital marketing offers businesses valuable insights into their customers and prospects, enabling effective one-to-one marketing and fostering two-way communication To implement successful one-to-one marketing, it is essential to gather customer-oriented information that identifies their needs and preferences, allowing for tailored adjustments to the marketing mix By leveraging digital tools for customer interaction, businesses can gain a clear understanding of their audience Additionally, digital marketing provides the opportunity to explore new demand for products or services, facilitating informed decisions before targeting new markets.
Companies can create and monitor online marketing campaigns to assess their effectiveness and allocate resources to the most successful ones They can track customer actions and identify which advertisements influenced purchases By testing various online strategies, companies can continue to invest in ads that yield strong performance (Pura, 2013).
From a consumer's perspective, digital marketing technologies enable continuous access to product and service updates This engagement allows consumers to interact with companies in real-time, ensuring their needs are met and reducing the likelihood of information misinterpretation Additionally, it provides a platform for consumers to give feedback directly to businesses.
Literature Review
In "Longitudinal Study of Digital Marketing Strategies Targeting Millennials," Smith (2012) utilized both qualitative and quantitative methods to reveal that millennials spend significant time online, making digital marketing an effective communication tool for this generation The study identified online coupons as the most popular digital marketing strategy, followed by email marketing, while YouTube ads and pop-up ads were consistently unpopular Although website interaction garnered attention, it failed to retain visitors, with promotions being the key factor that encourages millennials to revisit websites.
Ducoffe (1995) identified key factors such as entertainment, informativeness, and irritation that influence consumers' evaluations of ad value and their attitudes toward advertisements This model was validated and expanded by Brackett and Carr (2001), who introduced credibility and consumer demographics as additional components They found that credibility directly impacts both advertising value and attitudes, while demographic factors like college major, age, and gender primarily affect attitudes toward advertising Both studies measured attitudes toward ads based on favorability and unfavorability.
A study by Pawar (2014) on the effectiveness of online marketing within integrated marketing communication found that consumers increasingly depend on modern marketing tools to gain in-depth knowledge of brands, enabling them to assess strengths and weaknesses and make quicker purchase decisions The research highlighted that the rapid growth of online marketing is largely driven by rising internet literacy among consumers However, it also noted that skepticism regarding internet safety persists due to concerns about fraud and privacy issues.
Pikas and Sorrentino (2014) examined the effectiveness of online advertising on Facebook, Twitter, and YouTube, utilizing descriptive statistics and questionnaires for data collection Their findings indicate that while businesses recognize the necessity of a social media presence, the effectiveness of advertising on these platforms remains debated Properly formulated online advertising strategies can target a vast audience, but they must align with consumer opinions and preferences The survey revealed that most respondents find online advertisements intrusive and are generally averse to being exposed to marketing content on social media, suggesting that these advertising methods may not be effective for companies.
According to Pura (2013), a qualitative study on the "Effectiveness of Online Marketing Tools" revealed that email marketing stands out as the most effective tool, delivering significant value, while organic search marketing follows closely Email marketing is perceived as less intrusive than social media, as consumers are accustomed to receiving commercial emails However, to optimize its efficiency, certain constraints must be observed The study also highlighted that the primary purpose of social media is to facilitate communication between companies and customers rather than direct sales Social media allows customers to express their opinions, enabling companies to gather feedback and enhance customer service, thereby fostering word-of-mouth marketing.
Brajnik and Gabrielli (2010) conducted a comprehensive study titled “A Review of Online Advertising Effects on the User Experience,” which aimed to analyze the impact of banner advertisements on user behavior and attitudes over the past decade Through qualitative analysis of relevant research abstracts, the study identified key findings that highlight the connection between usability and user attention It revealed that the effectiveness of animation in ads can vary based on its density, while interactive advertisements significantly enhance perception, attitude, comprehension, and persuasion Furthermore, well-designed and strategically placed ads increase the likelihood of users engaging with emotionally appealing and rewarding content.
A study by Taiminen and Karjaluoto (2015) explored the use of digital marketing channels in small and micro enterprises (SMEs) within a regional economy, employing a multiple case study approach to analyze their marketing practices Through qualitative analysis and descriptive techniques applied to survey data, the research revealed that many SMEs are not fully leveraging the potential of digital tools, resulting in missed opportunities for growth and engagement.
Verissimo et al (2014) conducted a study on digital marketing and social media, highlighting the importance of relationship-based interactions for enhancing customer engagement Through a survey of marketing managers and descriptive analysis, the research reveals that companies encounter both internal and external pressures to establish a presence on social media platforms Additionally, firms' digital marketing engagement can be classified based on perceived benefits and the extent of digital marketing usage.
Royle and Laing (2014) explored the skills gaps in the communication industry through their work, "The Digital Marketing Skills Gap: Developing a Digital Marketer Model for the Communication Industries." Their research aims to enhance both industry and academic understanding of these gaps by providing an evidence-based model to assist educators and practitioners Utilizing a qualitative approach, the study incorporated interviews and focus groups to validate the findings, ultimately presenting a model that delineates the essential skills and competencies required for an ideal digital marketer.
In a study conducted by Ngo My Tran and Mai Vo Ngoc Thanh in Vietnam, titled "The Effectiveness of Social Network Marketing on Consumers' Purchase Intention in Can Tho City," data was collected from 193 consumers The research identified four key factors of social network advertising that influence purchase intention, revealing that social interactivity, permission, and entertainment significantly enhance consumers' likelihood to buy.
Chapter 1 had given an overview on the theories about digital marketing and its role in a business as well presented some related researches These theories contributed as a basis for proposed research models
The upcoming chapter will outline the current status of CFYC and explore the implementation of digital marketing strategies within the organization It will also present research findings, relevant statistics, and a comprehensive conclusion.
REALITY OF APPLYING DIGITAL MARKETING IN
Introduction of California Fitness and Yoga Center
2.1.1 An overview of California Fitness and Yoga Center
Founded in 2007 and owned by California Management Group Asia (CMG.ASIA), California Fitness and Yoga Center has emerged as the first and largest international fitness company in Vietnam Its mission is to promote health and wellness through a variety of fitness and yoga programs.
With over a decade of experience, CFYC has established itself as a leading fitness club system in Vietnam, featuring 15 clubs in Ho Chi Minh City, 10 in Hanoi, and 6 in other regions The organization employs around 5,000 staff members, with 95% being Vietnamese, including several in senior management roles Since opening its first club in District 7, Ho Chi Minh City, CFYC has garnered a loyal membership base of over 150,000 individuals nationwide, all while striving to "make life better."
In Ho Chi Minh City, the fitness market is categorized into three segments: high-income, middle-income, and low-income The high-income segment features prestigious clubs located in renowned hotels and upscale apartments, as well as popular chains like California Fitness and Yoga Centers, Elite Fitness, City Gym, Get Fit Gym, and Fit24.
As a leader in the fitness industry, CFYC has established a dominant market presence that is difficult to overlook According to a social listening report by Buzzmetrics, CFYC is the most talked-about fitness brand, highlighting its significant impact and popularity among consumers.
Figure 2.1 A social research of Fitness Industry 01/09/2015 - 30/11/2015
The report highlights that CFYC's fanpage stands out as the most effective among fitness brands, generating significantly more discussions than its competitors in the industry.
In recent years, the demand for training and healthcare has surged, leading to a rapid increase in the number of fitness clubs in Ho Chi Minh City The significant profits generated by the fitness industry have prompted companies to continually invest in expanding their operations This growth presents both opportunities and challenges for CFYC as it strives to maintain its market position.
CFYC is a premier international gym system featuring state-of-the-art equipment and facilities, complemented by additional services like hot showers, saunas, and massages Membership options vary, offering exclusive benefits based on card class and duration, with platinum cardholders enjoying unlimited access to all clubs nationwide CFYC caters to diverse consumer needs by providing a range of tailored services.
Group fitness are cardio, running, cycling classes, etc with the aim of reducing excess fat, strengthening body strength and endurance by burning at least
Burn 650 kcal in just one hour with our inclusive fitness group classes designed for everyone Enjoy social interaction while engaging in a variety of fun workouts, including Bums' n Tums, Bodypump, Polefit, Caliride + RPM, Bodybalance, Sexy Dance, Body Combat, and Cycling.
Muscle tension relaxation treatment helps alleviate the unwanted pressure on muscles and joints caused by exercise, sports activities, prolonged sitting, poor posture over the years, and wearing high heels.
Dancing offers numerous benefits for both the body and mind, including burning 600-800 calories per hour, aiding in weight loss, boosting self-confidence, improving flexibility, slowing the aging process, and relieving stress Popular dance classes such as Zumba, classical dance, pole dance, pop dance, and Sh'Bam provide enjoyable ways to stay active and healthy.
Yoga offers significant benefits for both mental and physical health, making it an effective practice for weight loss This has led to an increasing number of CFYC members participating in yoga classes Popular styles of yoga include Hot Yoga, Power Yoga, Ashtanga, and Hatha Flow.
CFYC provides tailored personal trainer packages that include personalized instruction and dietary recommendations to optimize training effectiveness Personal training is the most effective service for individuals aiming to manage their weight Clients can select from a variety of packages, such as weight loss training, post-injury recovery sessions, mixed martial arts (MMA) coaching, and one-on-one yoga lessons through the Yogi & I program.
Kickfit is a dynamic martial art that blends elements from various disciplines, including boxing, jujitsu, Muay Thai, kickboxing, judo, and Vovinam This sport emphasizes powerful techniques such as punching and kicking, making it an excellent choice for physical training and bodybuilding With its diverse approach, Kickfit offers a comprehensive workout that enhances strength, agility, and overall fitness.
2.1.3 An overview of business performance of CFYC
CFYC is a highly efficient company that has made significant investments in recent years to renovate its equipment and enhance service quality By integrating science and technology into its operations, CFYC has successfully improved its overall business performance.
Revenue of sales and service increased over the years Revenue from 2015 to
From 2016 to 2017, CFYC experienced a revenue increase of $5,893,871, culminating in a total increase of $7,747,166 in 2016, with an average growth rate of 11% This success underscores CFYC's effective business strategies, largely attributed to the initial implementation of digital marketing, which solidified its crucial role in the company By continuously adapting to customer demands and enhancing service quality, CFYC maintains its competitive edge in the rapidly growing fitness industry.
Figure 2.2 Revenue of CFYC during 2015 to 2017 period
Digital marketing application at CFYC
2.2.1 The situation of applying digital marketing in 2015-2017 period
Since implementing digital marketing strategies, CFYC has experienced significant revenue growth, averaging a 15% increase annually Digital marketing plays a crucial role in attracting new customers, contributing to 10.5% of the company's overall annual profit Additionally, there are tailored transfer methods for the sales department to manage existing customers, with their revenue not included in the total reported by the digital marketing department.
Since then, it can be seen that digital marketing plays a key role in creating a new and stable source of income for CFYC This role is undeniable Therefore, it is
Revenue necessary to have effective promotion measures for DM activities to bring better revenue for the whole company
Figure 2.3 Total Digital marketing revenue and cost 2015-2017
CFYC currently divines its digital marketing into four main channels: Facebook, Google, Affiliate and Internal
Facebook is the leading channel for generating new consumers, or "leads," for CFYC, delivering over 60,000 leads annually It contributes the highest revenue, averaging 36.9% of total earnings, largely due to the extensive daily use of Facebook among the Vietnamese population The platform operates on a cost-per-click and cost-per-mille basis, meaning increased user interaction with ads results in higher costs Consequently, Facebook accounts for approximately 71.7% of total advertising expenses, highlighting the necessity for effective optimization of Facebook advertising strategies.
Figure 2.3 Total Facebook revenue and cost 2015-2017
Google advertising encompasses Search Engine Marketing (SEM) and the Google Display Network (GDN) SEM enhances website visibility in search engine results through paid ads, while GDN displays advertisements on Google Adsense partner sites, primarily serving branding purposes Google Ads generates approximately 36,000 leads annually, contributing to 25% of total digital marketing revenue, despite accounting for only 18.6% of average marketing costs.
Figure 2.4 Total Google revenue and cost 2015-2017
CFYC is an important partner of many affiliate marketing agencies In 2016, CFYC and Pmax, Ad-Asia joined hands for marketing on affiliate channels In
In 2017, Accesstrade and Chin Media partnered to generate nearly 31,000 leads annually, contributing to 6.2% of total revenue while only incurring 9.7% of total costs This collaboration proved to be a cost-effective channel with a cost-income ratio (CIR) of approximately 6.3%, significantly lower than Facebook's 16.4% and Google's 13.2%.
Figure 2.5 Total affiliate revenue and cost
Internal channels, including websites, blogs, chat centers, SEO, hotlines, SMS marketing, and email marketing, are among the most effective communication tools for businesses In 2017, alongside traditional digital tools, SMS and email marketing began to gain traction, with their full potential being realized in early 2018 Enhancements such as chat-center integration on websites, optimized hotline setups, and advanced platforms for email and SMS distribution have significantly improved the performance of these channels Over the course of a year, internal channels generated nearly 32,000 leads, contributing to 32% of total revenue without incurring operational costs Given their immense potential, it is crucial for firms to continuously enhance these internal channels.
2.2.2 Evaluation of the application of digital marketing at CFYC
As can be learnt so far, the use of digital marketing of CFYC has helped the firm itself achieve certain effectiveness and some limitations are to be improved
Digital marketing has significantly boosted CFYC's revenue by attracting new customers at a reasonable cost, while also enhancing brand visibility Key improvements to internal channels have further increased performance and enriched the customer experience when engaging with CFYC.
While digital marketing offers numerous advantages, it also presents challenges related to investment, human resources, processes, and technology Effective channel management necessitates teamwork, especially given the over 300 campaigns assigned annually to each channel With such a high volume of campaigns, achieving consensus and alignment among teams managing the primary channels is crucial Unfortunately, a lack of agreement on campaign standards can hinder overall effectiveness.
Revenue teams and within each team Consequently, channel‟s performance is difficult to keep track and the cost is difficult to optimize
When a lead is registered in the Customer Relationship Management (CRM) system, the telemarketing team reaches out via phone to schedule an appointment at the club However, this process can be time-consuming due to the large volume of leads generated every hour As a result, new leads with urgent needs often experience delays in contact, which diminishes the likelihood of generating revenue.
Facebook ads were the least effective digital marketing channel, consuming 71.7% of the total marketing budget while generating only about 10% more revenue than unpaid channels Similarly, Google Ads, despite being less expensive than Facebook, also represented a significant portion of the digital marketing budget and faced similar challenges with high customer acquisition costs.
Consumer negativity towards digital marketing has prompted a need for clarity and solutions To address this issue, a quantitative study was conducted to explore and analyze consumer attitudes towards digital marketing.
Consumer attitude towards digital marketing application at CFYC
This study utilized a qualitative methodological approach to explore consumer attitudes towards the digital marketing strategies of CFYC in Ho Chi Minh City By conducting one-on-one interviews followed by focus groups, the research aimed to gather rich, detailed responses and triangulate findings The interview design encouraged in-depth discussions, allowing participants to elaborate on specific interests and uncover complex phenomena related to digital marketing As noted by Miller and Glassner (2011), interviews can reveal valuable insights into the contexts and situations surrounding the phenomena under investigation, enhancing our understanding of social dynamics and consumer perceptions in the digital marketing landscape.
The interviewees for this research were carefully chosen from CFYC's Marketing Department to ensure they possessed relevant experience in digital marketing These professionals were selected based on their regular use of digital marketing tools and their ability to provide in-depth insights This purposeful selection method enhances the research's effectiveness by focusing on specific expertise and shared experiences among participants Consequently, a proposed model of consumer attitudes toward digital marketing ads emerged from the findings (Royle & Laing, 2014).
The primary method is collecting data through questionnaire which consists of
The study utilized a 12-item Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree) to assess responses from both fitness club members and non-members of CFYC The questions were designed to align with components of a proposed model, ensuring clarity for respondents Data collected from the survey was systematically processed and analyzed using Excel for accurate results.
Based on interview results and theoretical analysis, a proposed model has been developed to identify factors influencing consumer attitudes toward digital marketing advertisements Key determinants of these attitudes include informativeness, entertainment, credibility, and irritation, primarily grounded in Ducoffe's model of consumer attitudes toward advertisements.
1996 and developed model from Ducoffe‟s original model by Brackett and Carr
(2001) as well as other mentioned research model
The proposed research model outlines the objectives for developing a scale to investigate the factors influencing attitudes toward digital advertisements This scale, validated through numerous prior studies and endorsed by interviewees, will effectively measure the relevant aspects of this topic.
Table 2.1 Factors affecting attitude towards digtal marketing arts
Informativeness refers to the ability of
1 DM Ads of CFYC are good
(1995) How advertising to inform consumers of product alternatives so that purchases yield the greatest possible satisfaction sources of service information
2 DM Ads of CFYC provide relevant service information
3 DM Ads of CFYC provide timely information consumers assess the value of advertising Journal of Current Issues and Research in
The ability to fulfil an audience's needs for escapism, diversion, aesthetic enjoyment, or emotional enjoyment
1 DM Ads of CFYC have interesting content
2 DM Ads of CFYC are highly entertaining
3 DM Ads of CFYC are pleasing to view
(1995) How consumers assess the value of advertising Journal of Current Issues and Research in Advertising, 17(1), 1-18, with adjustments
Credibility Consumers‟ perception of the truthfulness and believability of advertising in general
1 DM Ads of CFYC are trustworthy
2 DM Ads of CFYC are believable
3 DM Ads of CFYC are
MacKenzie, S B., & Lulz, R J (1989, April) An empirical examination of structural antecedents of attitude toward the ad in an advertising persuasive prestesting context
Irritation The annoyance that intervenes with the advertisement
1 DM Ads of CFYC appear too much
2 DM Ads of CFYC are annoying
3 DM Ads of CFYC are irritating
(1995) How consumers assess the value of advertising Journal of Current Issues and Research in Advertising, 17(1), 1-18, with adjustments
The questionnaire was sent by e-mail to people who have provide their contact information during the interaction with CFYC, in which, 109 responses were gathered
The questionnaire is divided into two sections, with the first focusing on demographic information, including age, gender, occupation, income range, online activity duration, and the digital channels through which respondents discover the brand.
From the 109 respondents, 34% of them were male, leaving 66% were female
The study analyzed three distinct age groups, revealing that individuals under 25 years old comprised 34% of the total participants, while those aged 25 to 35 represented 40% Meanwhile, participants older than 35 years accounted for 26% of the overall sample.
In a recent survey, 39% of respondents identified as students, while 54% were employed, and the remaining 7% fell into other categories Income data showed that 16% of participants earned less than 2 million VND monthly, 52% earned between 2 million and 10 million VND, and 32% reported earnings exceeding 10 million VND per month.
According to recent statistics, 31% of individuals spend less than 4 hours online each day, while 54% are active for 4 to 8 hours Additionally, 32% of users dedicate over 8 hours to online activities daily.
About the number of people who have already used fitness service, among
109 people responding, there were 98 (90%) of them are fitness club members
The questionnaire revealed that Facebook and Instagram are the most popular digital channels for discovering fitness services, with search engines like Google and YouTube following closely behind Additionally, recommendations from friends and family play a significant role in how individuals learn about these services.
Figure 2.9 Most used digital channels
The second part of the questionnaire was questions related to factors influencing consumers‟ attitude towards digital marketing advertisement
The survey results indicate that consumers value informativeness the most in digital ads, achieving a mean score of 3.7645, suggesting they find these ads to be reliable sources of relevant service information presented timely Credibility follows with a mean score of 3.3976, indicating that respondents generally view CFYC's digital ads as trustworthy and believable In contrast, the entertainment aspect scored lower at 2.8318, reflecting a lack of interest in the content of CFYC's ads, which respondents did not find entertaining or enjoyable Additionally, the frequency of digital ads did not lead to annoyance, as evidenced by a mean score of 2.6972, showing that respondents were not particularly irritated by their presence.
Respondents rated their attitude towards CFYC's digital marketing ads with a mean score of 3.8991, indicating a neutral perception that suggests room for improvement Enhancing customers' attitudes towards these digital ads is essential for better engagement and effectiveness.
Results
The research employed expert interviews to identify factors influencing customer attitudes towards digital advertisements and to develop a research model based on these insights It highlights the crucial role of digital marketing in the technological era for overall business growth, particularly for CFYC However, the study acknowledges inherent drawbacks, notably how commercial advertisements are perceived by the audience Data analysis indicated that informativeness emerged as the most significant factor, followed by credibility, while entertainment ranked lowest in importance Overall, the findings suggest that improving informativeness and credibility in digital ads can enhance customer perceptions.
Informativeness Entertainment Irritation Credibility Attitude
Digital advertisements often frustrate consumers, leading to a neutral perception that affects their effectiveness, as evidenced by a cost-income ratio exceeding 10% This highlights the need for strategic improvements in digital marketing efforts To enhance performance and reshape customer attitudes, it is essential to promote positive elements while addressing and refining those aspects that fail to resonate with the audience.
This chapter provides an overview of CFYC and its current application of digital marketing in business, highlighting the significant contributions of digital marketing to brand development It identifies operational challenges related to communication, management, processes, and advertising A research model was developed through expert interviews in the digital marketing field, leading to a study aimed at identifying the factors that influence customer attitudes toward advertisements.
Chapter 3 will give conclusion to the study Recommendations will be presented to optimize digital marketing performance, as well research limitations and managerial implication will also be included.
CONCLUSION AND RECOMMENDATION
Conclusion
The study explored how digital marketing influences customer motivation to select services at CFYC Findings enhance our understanding of digital marketing's role, highlighting how consumers value brands and services on digital platforms and consider the information shared through these channels.
CFYC has experienced revenue growth since implementing digital marketing strategies, which serve as a significant source of new traffic due to their expansive reach However, operational and advertising content restrictions hinder efficiency and increase costs, largely influenced by consumer attitudes Identifying the factors that affect customer agreement or disagreement with these restrictions is essential for making recommendations to enhance digital marketing performance.
Research indicates that four key factors influence consumer attitudes toward advertisements: informativeness, entertainment, credibility, and irritation Among these, informativeness is the most widely agreed upon factor, while entertainment received the least approval from consumers.
As the leading fitness brand in Vietnam, CFYC holds the largest market share; however, it must continually seek improvement to maintain its competitive edge Without innovation and adaptation, emerging competitors could pose a significant threat to CFYC's established position in the industry.
Recommendation
Digital marketing advertisements often prioritize commercial goals, leading to information overload for customers while sacrificing enjoyment Di Pietro and Pantano (2012) discovered that incorporating fun and interactive elements in advertisements encourages customers to engage more with promoted services A social listening report by Buzmetrics highlights the viral trend of sharing training results and challenging body poses on social media, which has received positive feedback Additionally, infotainment sites have played a significant role in popularizing these fitness trends Therefore, CFYC should focus on integrating entertaining elements into its digital advertisements and marketing strategies to enhance customer engagement.
Promotional videos significantly influence viewers' emotions and psychology through compelling visuals, sounds, and effects, delivering meaningful messages that resonate, especially with those overwhelmed by text-heavy content With longer interaction times compared to static posts and the potential for unlimited views, video ads can effectively convey creative and exclusive content, fostering a viral impact in the online space Engaging video ads enhance brand recall, attract attention to advertised services, and strengthen community connections with the brand.
To boost gym attendance and engagement, it is recommended to create viral trends or competitions on social media that showcase training stories and results This strategy can be complemented by offering a special membership package tied to these trends Additionally, prioritizing video advertisements will help expand the reach of CFYC to a broader audience.
According to survey results, concise and clear advertisements capture the attention of digital audiences more effectively To engage fitness-conscious consumers, brands should provide valuable content such as training instructions, diet tips, and success stories from customers who have achieved their fitness goals Content marketing is rapidly gaining traction and has demonstrated its effectiveness, with CFYC excelling in this area However, email marketing, despite its high conversion rates, has not yielded significant value in this context To enhance email marketing efforts, adopting a new platform that automates the timely delivery of HTML emails could be beneficial.
Boosting a brand's credibility can be effectively achieved through customer reviews, as research indicates that word-of-mouth is a powerful marketing tool Positive testimonials from satisfied customers significantly influence potential buyers, making them more likely to make a purchase Therefore, providing a platform for customer reviews not only enhances brand credibility but also drives sales.
Enhancing a brand's image significantly boosts its credibility, as customers are increasingly concerned about a company's social reputation beyond the services offered Engaging in social initiatives such as charity events, fundraising, and offering environmentally friendly products or services is an impactful way to elevate brand value and credibility while contributing to the betterment of the community.
Irritation in advertising can significantly diminish its effectiveness, leading consumers to develop a negative perception of ads due to irrelevant and distracting information that intrudes on their privacy (Stewart & Pavlou, 2002) To combat this issue, it is recommended to reduce the prevalence of spam ads and enhance user autonomy in advertising This approach, known as permission-based advertising, empowers consumers by allowing them to control the timing, location, and format of the advertisements they receive (Carroll, Barnes, Scornavacca & Fletcher, 2007).
Consumers are increasingly annoyed by frequent ads on social networks, as these ads compete with user-generated content in their feeds, leading to a decline in click-through rates Businesses often prioritize advertising without fostering customer relationships, resulting in a psychological indifference towards social media ads that are easily overlooked To avoid this pitfall, CFYC should focus on building trust and enhancing their reputation through meaningful customer interactions Additionally, it is essential to provide customers with the freedom to engage with or ignore ads, ensuring a more comfortable advertising experience.
To enhance digital marketing operations at CFYC, it's essential to establish a consensus among the ads performance teams regarding campaign names, rules, and content This alignment will facilitate easier tracking of revenue and optimization of costs.
CFYC should streamline the online guest process to enhance user experience, as the current system is time-consuming and frustrating for consumers Implementing a booking site would allow customers to schedule a club visit immediately after submitting their information, thereby saving time and alleviating the workload on the telemarketing team.
CFYC operates nationwide, providing a unique opportunity for wifi marketing through its extensive network By implementing wifi marketing in shopping mall clubs, businesses can offer free wifi in exchange for guests' phone numbers, significantly expanding their digital marketing reach.
Research limitations
Although the study can give some useful suggestions, it cannot avoid some mistakes and limitations
The most obvious limitation is that this study was not able to examine the reliability of the proposed model, the correlation of the factors etc
The study's findings indicate a limitation in sample representativeness, as it primarily includes individuals under 25 years old, who are the predominant users of digital marketing channels Additionally, the research is confined to Ho Chi Minh City, which restricts its ability to reflect the diverse range of consumers.
Some theories applied in this study may be outdated, and the research lacks a focus on specific digital marketing channels Consequently, the detailed information may differ across brands based on their unique digital marketing strategies.
This study explores the role of digital marketing in influencing consumer attitudes and purchasing decisions within the fitness industry The findings reveal that key factors such as informativeness, entertainment, credibility, and irritation significantly impact how consumers perceive digital marketing advertisements These insights are valuable for practitioners and managers of online companies seeking to enhance their marketing strategies Future research should focus on emerging factors related to new digital technologies and employ a quantitative approach to validate the proposed model, thereby deepening the understanding of digital marketing's effects on consumer behavior.
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DIGITAL MARKETING FACTORS AFFECTING CONSUMER
BEHAVIORS TO CHOOSE FITNESS SERVICE
This is a questionnaire to research the purchase behavior to choose fitness service in Ho Chi Minh City I would love to receive answers from you
I guarantee your answers to these questions are for research purpose only Yours sincerely,
1 What is your gender? a Female b Male
3 What is your job? a Student b Worker c Others
4 How much do you earn a month? a 7 millions
5 How much time are you online on average? a < 4 hours b 4 hours -8 hours c > 8 hours
6 Where did you learn of fitness service? a Facebook/ Instagram Ads b Google c Youtube Ads d Club websites e Infortainment/ Electronic newspaper f Fitness blogs/forums g Reference from friends and family h Others
7 Have you been a fittness club member before? a Yes b No
Thank you for accepting to do this survey, below are important questions, please help us complete those questions Thank you
Only choose one out of five options, scores are:
DM Ads of CFYC are good sources of service information
DM Ads of CFYC provide relevant service information
DM Ads of CFYC provide timely information
DM Ads of CFYC have interesting content
DM Ads of CFYC are highly entertaining
DM Ads of CFYC are pleasing to view
DM Ads of CFYC are trustworthy
DM Ads of CFYC are believable
DM Ads of CFYC are persuasive
DM Ads of CFYC appear too much
DM Ads of CFYC are annoying
DM Ads of CFYC are irritating
Interviewee Contact number Job Tittle
Erik David 090 269 4545 CFYC‟s Marketing Vice President Pedro Baliza 0125 794 1242 CFYC‟s Marketing President
Duong Tu My 093 687 8424 Performance marketing consultant Kieu Thanh Nguyen 097 875 0756 Data engineer team leader
Nguyen Minh Chau 098 785 4484 Google - Affiliate Manager
Huynh Thien Duc 096 821 2079 Google Ads Senior Executive Tran Thuy Thuy Huong 08 194 8822 Affiliate Senior Executive
Huynh Nhat Trung 090 992 8161 Senior Marketing Executive
Dang Dung 035 596 9365 Senior Campaign Executive
Hien Tran 093 994 6469 Senior Digital Marketing