Black Book Project
Black Book Project
A017
A PROJECT REPORT ON
IMPACT OF SOCIAL MEDIA ON CONSUMER BEHAVIOR
Submitted to University of Mumbai for partial completion of the degree of
BY
BY
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DECLARATION BY LEARNER
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ACKNOWLEDGMENT
To list who all have helped me is difficult because they are so numerous and
thedepth is so enormous.
I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me
chanceto do this project.
I would like to thank my Principal, PROF. (DR.) PREETA NILESH for
providing the necessary facilities required for completion of this project.
I take this opportunity to thank our Coordinator, PROF. SEEMA PAWAR for her
moral support and guidance.
I would also like to express my sincere gratitude towards my project guide Ms. PROF.
AMRUTA KHANOLKAR whose guidance and care made the project successful. I
would like to thank my College Library, MR. PARITOSH PAWAR & MISS
KAVITA MEHTA for having provided various reference books and magazines
related to my project.
Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my Parents and Peers
who supported me throughout my project.
Chapter No. Content Page no.
1 Introduction
1.1 How Can we Define Social Media? 1
2 Research Methodology
2.1 Objective of the study 17
5.2 Conclusion 54
5.3 Suggestion 55
5.5 Webliography 58
Appendix 59-61
Introduction
If we were to ask a group of strangers on the street what they thought social media
meant, we would probably get a list of various social media platforms, such as Facebook
and Twitter; however, we would find it hard to find someone who could give a concrete
definition of what social media meant. Study of social media is in a similar state, where
one might acknowledge the consensus on what tools are considered social media but
also the existing ambiguity on what defines social media, especially across various
disciplines.
It is not as if scholars till now have not tried to define social media. They have, and
across various related fields such as the discipline of communication, information
science, public relations, as well as mass media. These definitions usually surround the
notion that social media can be defined as “digital technologies emphasizing user-
generated content or interaction” (e.g., Kaplan & Haenlein, 2010; Terry, 2009).
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Giving a Different Definition to Social Media
We look at the various aspects of social media and then try to formulate a working
definition of the same, while keeping in mind its dynamic personality.
- Persistent channels. Unlike services that are synchronous, such as Skype and
Zoom, where a user needs to be online for you to communicate, social media
platforms are formed through persistent online spaces, where messages are
created, transmitted and consumed regardless of who is online and who is not.
Snapchat is an example of a persistent service too. It allows users to send
pictures and texts that could be deleted shortly after they’ve been viewed, hence
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forming continuously accessible channels.
- User-generated value. This means that the enjoyment of using social media
comes from the constant contributions from or interactions with other users
rather than content that is generated by organizations or individual that host the
medium. Desanctis and Poole’s (1994) adaptive structuration theory posits users
can either faithfully or ironically adopt a technology by either using it for its
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intended or unintended purposes, respectively. Viewed through the lens of
adaptive structuration theory, users may derive value from a service not
intended to provide value through user-generated content and ironically adopt
an asocial medium, using it as a social medium. For example, though imgur.com
is a simple image-sharing website, users often derive gratification from
interactive user comments and exchanges below each picture (Mikal, Rice,
Kent, & Uchino, 2014) and have appropriated the service for political activism
and journalism (Pearce, 2014). Thus, understanding from where utility is
derived for a specific medium may be an idiosyncratic process.
Some major social media platforms include Twitter, Facebook, WhatsApp, YouTube,
and Instagram. They employ various psychological techniques to keep users on their
platforms for as long as possible, so they can make revenue. For example, the ad
platform of Facebook and Instagram allows a seller to target specific users based on
parameters such as age, demographics, and interests. Social media, therefore, actively
influences ‘consumer’ behavior, where the person is a consumer of both the social
media content and the products and services offered on the platforms.
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Increasing Use of Social Media
It would be harder to find someone without a social media presence than someone with
one. A 2015 study conducted by the Pew Research Center, a nonpartisan fact tank,
observed the following statistics:
Across demographic groups, a number of trends emerge in this analysis of social media
usage:
- Age differences: Seniors make strides – Young adults (ages 18 to 29) are the
most likely to use social media – fully 90% do. Still, usage among those 65 and
older has more than tripled since 2010 when 11% used social media. Today,
35% of all those 65 and older report using social media, compared with just 2%
in 2005.
- Gender differences: Women and men use social media at similar rates –
Women were more likely than men to use social networking sites for a number
of years, although since 2014 these differences have been modest. Today, 68%
of all women use social media, compared with 62% of all men.
- Racial and ethnic similarities: There are not notable differences by racial or
ethnic group: 65% of whites, 65% of Hispanics and 56% of African-Americans
use social media today.
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- Community differences: More than half of rural residents now use social
media – Those who live in rural areas are less likely than those in suburban and
urban communities to use social media, a pattern consistent over the past
decade. Today, 58% of rural residents, 68% of suburban residents, and 64% of
urban residents use social media.
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The use of digital technology has exploded within the previous twenty years. it's
increased human exposure to long periods of screen time, which may be a developing
problem. Digital technology is defined because the use of equipment to store, generate,
or analyse data, moreover because the facilitation of communication and virtual
interactions on social media platforms via the net (Vizcaino et al., 2020). Computers,
laptops, palmtops, smartphones, tablets, and other screen-based devices are samples of
electronic gadgets. they're a way of communication, virtual exchanges, and human
connection. Humans require social connection to survive. Furthermore, social
interaction improves psychological state. Because to the COVID-19 epidemic, digital
networks became the sole way for people to keep up social and emotional connections
(Kanekar and Sharma, 2020). The digital age is here to remain.
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Consumer Behavior
Consumer behavior is referred to the actions and purchasing decisions of people who
buy or indulge in goods and services that satisfy their wants and needs.
The study of consumer behavior is extremely crucial for marketing. The expectations
of consumers can be understood and adjusted accordingly then. Through the study of
consumer behavior, marketers can also understand what kind of products are liked by
the consumers and what it is about the products that encourages the consumers to buy
them.
Consumer behavior not only involves buying, however, marketers are also extremely
interested in how a consumer acquires, uses, and disposes the product.
- Acquiring is the process by which a consumer comes to own an offering.
- Usage is a process by which a consumer uses an offering.
- Disposition is referred to the process by which a consumer discards an offering.
The sequence of acquisition, consumption, and disposition might occur over time in
what we can call a dynamic order of hours, days, weeks, months or years.
Consumer behavior involves many people and many decisions. Individuals engaging in
consumer behavior can take on many roles. For example, for a car purchase, one or
more family members might take on the role of information gathered by researching
different models. Others might assume the role of influencer and try to affect the
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outcome of a decision.
Similarly, different family members might take on the different roles of user and
disposer of the car.
Consumer behavior also involves emotions and coping.
Researches have shown the powerful role that emotions play in consumer behavior.
Consumer behavior is also affected by the consumer’s culture and by the typical or
expected behaviors, norms, and ideas of a particular group. Consumers belong to a
number of groups, share their cultural values and beliefs, and use their symbols to
communicate group membership. Household and social class influences are involved
in consumer behavior, as are each individual’s values, personality, and lifestyles.
Consumer behavior can be symbolic and express an individual’s identity. It is also
indicative of how quickly an offering spreads throughout a market. Further, ethics and
social responsibility also play a role in consumer behavior.
Marketers study consumer behavior to gain insights that will lead to more effective
marketing strategies and tactics. Ethicists and advocacy groups are keenly interested in
consumer behavior, as are public policy makers, and regulators who want to protect
consumers from unsafe or inappropriate offerings.
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Social Media Marketing (SMM)
The term social media marketing (SMM) refers to the utilization of social media
and social networks to plug a company’s products and services. Social media
marketing provides companies with how to interact with existing customers and
reach new ones while allowing them to market their desired culture, mission, or
tone. Social media marketing has purpose-built data analytics tools that allow
marketers to trace the success of their efforts.
Social platforms each have an ecosystem of their own. Creating a basic social media
presence is easy enough, getting your community to actually do something is more
difficult. Make sure your site is included in local business directories in order to help
ensure that consumers find you when they need you. Customizing messages across sites
help the message spread but it keeps users from receiving multiple identical
communications. By giving exclusive coupons to your social community, you’re
rewarding and reminding them that you are not only a brand to engage with, but also to
buy from. Taking advantage of these strategies can help you build your community,
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make your marketing more effective, and incentivize buying.
Email marketing is viewed by digital marketers as one of the pillars for successful lead
conversion. The widespread use of email marketing remains to be prevalent despite the
latest trend in digital marketing and marketers are taking the initiative of integrating
social media marketing to further strengthen their business lead conversions. By using
social media, your leads will find it easier to make a buying decision if they see your
brand within their friends’ social feeds. Social media marketers usually employ the
process of updating their email marketing content in their social media status updates
which effective in promoting brand marketing updates.
SWOT Analysis of Social Media
Strengths – Social media has proved to be very beneficial for small and big
businesses alike. They can reach wider audiences, listen to their concerns, build
rapport and trust with consumers, and build communities.
Weaknesses – However, on the other side of the coin, some aspects of social media
can prove to be quite a problem too; for example, the risk of getting negative
feedback, necessity to come up with new things first, costly ad campaigns, etc.
Opportunities – To talk about the opportunities that social media provides, the first
thing that comes to mind is building brand awareness. Other than this, being able to
directly target customers with marketing campaigns is very beneficial too.
Threat – Some of the threats of social media include data threat or breach, brand
impersonation, lack of boundaries and legal safety guidelines, site compromise
phishing attacks, spam, confidential information leak and so on.
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Different Social Media Platforms
More than half of the people around the world now use social media. For business,
this means it’s possible to reach nearly any type of consumer on these platforms. Here
are some of the social media sites with various features, niches and user bases.
- Facebook: Facebook is one of the most recognizable social media platforms
in the world. With 2.7 billion monthly active users, more than a third of the
world’s population uses facebook. Founded on February 4, 2004. Facebook
has consistently evolved through the years to fit the needs of its users and
attract new ones. Facebook offer targeted advertising opportunities for those
who wants to increase visibility to specific customers.
- LinkedIn: LinkedIn is the most popular social media site for professional
networking. The platform has over 700 million registered users, with about
300 million active each month. Launched in 2003, LinkedIn allows a user to
add their resumes, connect with others in their industry, and even post and
respond to job listings. In a marketing sense, LinkedIn is often especially
useful for B2B businesses. It even offers paid ads and content publishing
options.
- Youtube: Youtube isn’t just the most popular video-sharing website in the
world. It’s also the second most popular search engine behind Google. The
company was founded in 2005 and was eventually bought by Google.
YouTube has over 2 billion logged-in visitors per month. There are even more
who visit the site and watch videos without signing into their own account.
Basically, any business that wants to use video marketing can use YouTube to
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reach a wide audience. The site also provides analytics, facilitates interaction
between users, and lets you embed videos in other websites .
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The Future of Social Media in Marketing
We have seen what social media means and how it works. We understand its importance
in connecting people and providing a constant interaction platform. However, with time
social media has evolved to serve a string of purposes that the previous generation could
never have imagined. Similarly, social media plays a huge role in marketing too.
It is vital for people to consider social media’s future in the context of marketing and
consumer behavior, since social media is now a vital channel for businesses,
organizations and institutions for marketing and communication. For many people,
social media is the main domain for the information they receive on any and every topic.
Social media is always changing.
Research has determined that retailers can increase awareness of their brand by being
creative when engaging customers on social media sites. “As more shoppers are using
social media (e.g., Twitter, Facebook, MySpace, and LinkedIn) and rely on them for
marketing shopping decisions, promotion through these media has become important”
(Shankar et al. 2011, 32). According to Curran et al. (2011), social media sites such as
Facebook are better than other advertising avenues because it stores information on all
its users thus ensuring marketing reaches a retailer’s specific target market. Social
media sites are a great stage for retailers to create an experience and retailers can use
information stored on social media sites to improve user experience with their brand.
Since social media sites can be exploited for the information it provides on consumer
behavior with regards to their purchasing intentions, research further suggests that
businesses should incorporate social networking sites into their business model or
promotional mix. A business model is a system of codependent structures, activities,
and processes that serve as a firm’s organizing logic and create value for customers,
itself, and its partners (Sorescu et al. 2011). Mangold and Faulds (2009) recommend
that social media should be regarded as an integral part of an organization’s integrated
marketing strategy and should not be taken lightly. As Curran et al. (2011) points out,
almost 1 in every 13 person in the world is an active Facebook user, which points to the
potential of finding a ready market for any product or service. Social networking sites
are being utilized to enhance a company’s brand appeal and increase their target market
because “new technologies allow for more personal, targeted communications, as well
as increased consumer participation in the creation of marketing and brand related
information” (Cappo 2033; Jaffe 2005 as cited in Muñiz and Jensen Schau 2007, 35).
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Mangold and Faulds (2009) stress that traditional communication examples, which
relied on the classic promotional mix to create integrated marketing communications,
must give way to a new paradigm that includes all forms of social media as potential
tools in designing and implementing integrated marketing communication strategies.
Retailers are paying attention when it comes to social media because it provides a key
component that businesses have struggled to collect for years: feedback (Gonzalez,
2010). Feedback from consumers has always been important when it comes to product,
brand, and business model development. Since, most studies have examined social
media marketing in terms of suggesting how to incorporate it within a business plan,
and how to gauge consumers’ responses, it is important that further research address
which strategies work. Although some studies have started to touch upon influences
and factors that affect consumers’ responses, previous research does not clearly state if
social media marketing is valuable to retailers’ in terms of return on investment.
Moreover, research based on a small retailer’s perspective is limited. How have smaller
firms utilized social media within their business model? How successful has social
media been with increasing their customer base, brand awareness, and sales? It has
become clear that when marketers from large corporations present a new product or
brand, they consider both traditional and nontraditional media in which to place
advertising in order to make sure they reach their target market (Cheong and Morrison
2008). Small retailers also need to start utilizing nontraditional methods of marketing
in creative and engaging ways to make certain that they attract a larger number of
consumers. Sorescu et al. (2011, 11) states “another way in which retailers can engage
customers is by selling not just products, but an entire experience that – while centered
on the products, adds an entirely new exciting layer to the retail setting.”
Additional research is warranted regarding which social media marketing tactics are
effective for small retailers. Further studies could look into both the positive and
negative longterm effects of social media marketing on a small firm. Small retailers
have a smaller budget and tighter constraints yet provide more personal retailing,
therefore a study examining how these 23 aspects factor into a small store’s social
media tactics would be beneficial. Studies should also suggest how small retail
businesses could initiate and maintain social media marketing to improve relationships
with their customer base. To stay relevant retailers need to keep up with the changes to
ensure that they will be noticed by consumers, reinforcing the fact that more research
would be valuable to all parties involved: retailers, marketers, and scholars. “Anyone
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who’s not engaged in some form of social media is [making] a mistake in today’s world
given the volume of people [who have] embraced and utilize social media” (Le Veque
as cited in Gonzalez 2010, 84).
Social media opens up a whole new world for small retailers by providing an endless
array of potential interactions with consumers, which is the main reason why there is a
need for an increase in studies examining the impact of this new phenomenon on small
retailers.
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Research Methodology
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same. Self-reported data is again not the most reliable source of information for a
valid study.
Data Collection
For the present study, both primary and secondary data has been used to study the area
of research. The sample size was 121. In statistical analysis, the collection of data
plays a significant role. Primary and secondary are the two methods of data collection.
Primary data is the data that is collected for the first time through personal experience
or evidence, particularly for research. The data collected through the questionnaire is
primary data in this paper.
The data was collected from 121 respondents in an online format. An online
questionnaire was constructed using the Google Forms in the English language.
Convenience sampling with snowballing (request forwarding) was used to distribute
the online questionnaire through e-mails, messaging applications (WhatsApp), and
social media channels (Facebook and Instagram). All questions were simple, clear and
understandable. Some questions were in the form of a point five Likert scale. The
questionnaire of this research is attached to the Appendix of this paper.
The questionnaire consisted of 16 questions. The first three questions were about the
respondent’s age, gender, and employment status. Since data was collected in the
online mode through convenience sampling, this would help us never down the
demographic of our respondents. The next question was about whether the respondent
had access to the Internet via their personal phone or any other wireless device,
followed by the question of whether the respondent was a social media user or not.
This was to make sure that the respondents were actively using social media and had
constant access to it through their phones.
The rest of the questions were related to the impact social media had on the
respondents’ purchasing decisions.
The data collected from the survey was statistically analyzed and presented in
numerical figures, using percentage, standard deviation, etc. The results were
interpreted and presented using charts, tables, and descriptions by words, in order to
have a clearer presentation of the findings.
Secondary data is a second-hand data that is already collected and recorded by some
researchers for their purpose, and not for the current research problem. It is accessible
in the form of data collected from different sources such as government publications,
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censuses, internal records of the organization, books, journal articles, websites and
reports, and so on.
In this paper, we focused on collecting published journal articles for review of
literature. The papers were scoped from Google Scholar, open access papers were
downloaded and for the ones that did not have public access, request for access was
sent to the respective authors.
Consumer decision quality has no objective measurement and is difficult to
operationalize. In order to measure decision quality, an objective or subjective
approach might be taken. Subjective measures are evaluations of the decision-maker,
capturing what is important to the individual with respect to the decision. Survey
questions were designed to measure the subjective evaluations of the respondents
regarding the quality of the stages, in order to study the effectiveness of their
decision-making.
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Review of Literature
A Study on Social Media and Consumer Behavior with Special Reference to East
Siang District of Arunachal Pradesh
The focus of this study was to determine the extent to which social media platforms
impact consumer buying and decision-making process and to examine the various
social media factors that play a part in consumer purchase decisions. Consumers
benefit greatly from social media since they are able to search information of the
products, and have access to not only a broad range of information on the product but
also in less time. Businesses also get the advantage of reaching a wider audience,
including rural area customers, with the help of social media. The research findings
show that various social media factors play a vital role in consumer decision making.
For example, advertising and presence of brands in social media had a great impact on
consumers’ decision making process. In the present study, it was found that most of
the customers accessed information on products and services from Facebook. In
conclusion, the results from this study show that consumers in an eastern district of
Arunachal Pradesh, India, are actively using social media platforms as a tool to
facilitate their purchase decision making process.
This paper presents an overview of how consumers use social media in the stages of
decision making process and the psychographic variables that influence their
behavior. The author conducted a survey of 120 consumers that were selected
randomly in the capital city of Pristina, in order to find out the extent to which
consumers are impacted by the use of social media, and what role it plays in their
decision making process. About 59% of the respondents reported that they had made
unplanned buying decisions based on the information obtained on the Internet, and
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61.5% of the respondents declared that they were motivated for buying products and
services because of the social media reviews made by their friends. The findings
suggest in what segments businesses in Kosovo need to focus their market research
and marketing strategy.
- Andrew T Stephen
The purpose of this article is to review recently published research about consumers in
digital and social media marketing settings. The author has identified five themes: (i)
consumer digital culture, (ii) responses to digital advertising, (iii) effects of digital
environments on consumer behavior, (iv) mobile environments, and (v) online word
of mouth (WOM). The most popular themes were online word of mouth, which was
covered by almost half of the articles, and advertising, represented by slightly over
one-quarter of the articles. The author then proceeded to discuss each of these themes.
The article concluded with recommendations for future research. Consumer digital
culture research considers the digital environments in which consumers are situated.
Digital advertising is a major topic in the marketing literature and, with respect to
consumer behavior, considers how consumers respond to various aspects of digital
ads. Several recent articles have considered behavioral aspects of digital advertising
from various perspectives. Consumer behavior in mobile settings is increasingly
important, as consumers use mobile devices more frequently.
This article, in its essence, establishes an understanding of “social media”. The paper
talks about theory building and how it requires a shared understanding of social media
in a way that transcends discipline and contexts so that models are derived from a
common meaning shared by all scholars and applied equally to all tools that meet the
definition’s criteria. Consequently, the article and the definition that it advances give
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the allied communication fields a foundation for future exploration from a unified
understanding.
With a stable conception of what social media are as channels, and how
communication is changing to account for them, traditional, new, and
multidisciplinary theories will be able to account for the communication and
processes occurring in these nascent technologies and will support scholars in their
efforts to understand a dynamically evolving media landscape. These technologies
have already woven themselves into the tapestry of our daily interactions, and will
only become more integrated. Thus, the onus will be on researchers to actively
prepare to carefully and theoretically study social media and the communication they
facilitate as more than mere channels, but sometimes as actors themselves.
- Holly Paquette
This paper concludes that retailers can increase awareness of their brand by being
creative and when engaging consumers on social media. Promotion through social
media has become increasingly importance and essential as more and more people
start using social media and rely on them for marketing shopping decisions.
According to one study discussed in the literature review, social media sites like
Facebook are seen to be better than other advertising avenues since it stores
information on all its users thus ensuring marketing reaches a retailer’s specific target
audience. Large companies are regarding social media sites as a strategic tool and
some businesses are hiring employees to oversee their social media pages.
Another thing that plays into this dynamic is that fact that consumers are no longer
just passive receivers of marketing messages; they are actively using social media
platforms to voice their opinions, whether positive or negative. Retailers need to be
active participants on social networking sites and need to maintain the virtual brand
communities they create, since consumers’ participation with a brand on social media
greatly influences their buying decisions.
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A Study on the Impact of Social Media Marketing Trends on Digital Marketing
The authors also discuss the benefits of using social media channels in promoting a
brand. They emphasize that investing in social media marketing has now become a
need rather than a want.
Those who used social media found decision-making to be much easier and enjoyed
the process more, when compared to those who used other information sources. They
also showcased greater amount of confidence and satisfaction during the process.
People showed more satisfaction overall when they perceived information on social
media to be of higher quantity then expectations. It was concluded that information
overload on products did not reduce consumer satisfaction with social media. The
current study also showed that the use of social media improved satisfaction for
consumers during the initial stages of informational search and alternative evaluation
but did not help much in improving satisfaction in the purchase decision stage, nor in
the post-purchase evaluation. Another important conclusion found was that consumers
were just as satisfied to reach their purchase decisions in the traditional physical stores
after having conducted their search and evaluation online, implying that brick-and-
mortar shops have not yet lost their significance.
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The Impact of Social Media and Online Influences 0n Consumer Behavior
- Anna Karni
In this paper, the author first discusses what consumer behavior means, the five stages
of consumer behavior and what social media includes. Then, the results of the
research are analyzed and the impact of social media and online influences on
consumer behavior is studied in detail. The paper also discusses the impact of new
technologies and new trends like “stories” and “teams” in the social media platforms,
and whether they change consumer behavior at all or not. Since the paper is written
from a marketing perspective, the author suggests ways that sellers and corporations
can increase their brand value through social media interactions.
These days, almost everybody owns a personal computer, smartphone, or any other
device with access to the internet, consequently making them spend a good part of
their day on these devices, engaging in online social interactions. People are therefore,
constantly exposed to text, images, and video content on all sorts of topics. Even
subconsciously this content influences consumers and changes their needs and
preferences, as well as their views on brands and their products and services.
Businesses, products, and brands are inevitably involved in the conversations among
people in the online communities worldwide. Based on the research findings of this
paper, the author accepts the hypothesis that social media and online influences do
impact consumer behavior and people do use them not only for connecting to one
another, but for mercantile reasons as well. This result is beneficial to businesses,
which can establish communication channels with their clients, provide them
information and awareness, as well as expose their products to new audiences with
comparative ease. While concluding, the authors encourages further research on social
media and its impact on consumer behavior.
The objectives of this paper included determining social media’s impact on consumer
purchasing decisions and to investigate the impact of social media platforms on
product consumption patterns. According to the survey, consumers in eastern Uttar
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Pradesh are actively using social media platforms as a tool in their purchasing
decisions. Social media is considered to an electronic form of word of mouth by a
majority of the respondents in the survey. The study found that social media has a
significant impact on customer purchasing behavior in this digital age. The findings of
the paper also include the fact that consumers are becoming exceedingly choosy when
making purchases.
The main objective of this research was look into the impact social networking has on
consumer behavior. The research was organized in five chapters and showcased the
overall influence of social networking on consumer behavior while also suggesting
ways to further study the topic under consideration. At an increasing rate, consumers
are looking at websites, as well as the habits and behaviors of peers before making
decision on a purchase or in selecting what type of entertainment they wish to
subscribe to. Social networking sites are breaking down barriers and building more
accessible communities online. The method of research subscribed to in this study
was quantitative in order to collect vast data related to the research topic. Collecting
numerical data was facilitated through this form of research. All the respondents of
the survey were males and females and older than 18 years old. Two hypotheses were
suggested: 1. There is no significant correlation between the degree of self-evaluated
interaction of consumers and UGC and consumers’ self-evaluated attitudinal
purchasing behavior, 2. There is a significant correlation between degree of self-
evaluated interaction of consumers and UGC and consumers’ self-evaluated
attitudinal purchasing behavior. Hypothesis one was supported by the findings; the
results of this research indicated that a strong, positive relationship exists between the
variables of UGC and consumers’ attitudinal purchasing behavior.
- Jonida Xhema
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Firstly, this study showed that there is a negative relation between social media usage
and customer loyalty. Meaning, the customers that spend more time using social
networks and search engines are less loyal to brands, implying that they do not
consider specific brands for future purchases, nor do they encourage others to buy
company’s products. Secondly, this study has shown that there is a negative relation
between social media usage and customer tolerance, meaning that customers that
spend more time on social networks and search engines are less tolerant to bad service
and over-pricing. Thirdly, this study has shown that there is a positive relation
between social media usage and customer experimenting. This shows that with the
increase of social media usage, customers tend to experiment more on their purchase
decisions. Through the means of statistical analysis (correlation and regression), these
three hypotheses were supported. Through this paper we understand that social
network have affected the behavior of customers and now there is a two-way
communication, where customers are less tolerant towards bad service or overpricing;
they do not consider themselves future buyers or high-end buyers of a company; and
finally, they like to try new products without seeing them.
- Shirley Cox
This study found that the attitude of a social network user toward online advertising
formats (i.e. blogs, video, and brand channel or page) differed to some extent across
age groups. The authors goes on to explain that users who fall in the 18-28 age
brackets had strong positive attitudes towards blogs, video, and brand channel ad
formats. This was because users’ found these ad formats to be eye catching,
informative, and amusing. The 35-54 age groups preferred ad formats on video and
brand channels because they found them to be more eye catching, informative, and
had better placement within the online 11 page layout. Overall, online advertising
formats with positive attributes are welcomed by users; however, ads that are intrusive
or interfere with online social networking activities, such as pop up, expandable, or
floating formatted ads were disliked by network users.
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Measuring the Effects and Effectiveness of Interactive Advertising: A Research
Agenda
There are new and difficult challenges that are posed by interactive advertising that
are related to the measurement of its effects and effectiveness. The paper discusses the
need for advertising evaluation to shift from a focus on outcomes to a focus on both
process and outcome. The role of the consumer in selecting when and how to interact
with an advertisement, if at all, and the goals and purposes of consumers involved in
the interaction will be especially important dimensions of advertising that will require
new measures and new conceptualizations of how advertising works. The paper also
compares and contrasts traditional notions regarding the measurement of advertising
effects with notions that recognize the active role of the consumer in interacting with
advertising and the advertiser.
- Veronija Nolcheska
The aim of this research paper was to examine the influence that social media
networks have on consumer behavior. It investigated how social network influenced
and the level of influence on each step of the purchasing decision-making process and
tried to establish a model of the influence of trust, perceived usefulness, convenience
and community, on consumer’s intention to buy. The paper also studies the
consumers’ attitudes towards social networks as marketing tool and how they
correlate to the impact of social network on purchase decision. Quantitative method of
research was adopted in the paper. Empirical data was collected through self-
completion questionnaires, from a convenience sampling of 120 social network users,
and was processed and analyzed in SPSS. The results showed that consumers have
positive attitude toward social networks and revealed positive correlation between the
attitudes and influences of social networks on consumers’ purchase decision. There
were several limitations of the study that were discussed by the author at the end. The
implications for marketers were also discussed.
27
Word of Mouth on the Web: The Impact of Web 2.0 on Consumer Purchase
Decisions
- Cate Riegner
Some of the objectives of the research were as follows: measuring the adoption of
Web 2.0 tools and participatory activities among broadband users, tracking the
influence of UGC on purchase decisions, and lastly, to explore how fans participate
online and understand the motivations that prompt them to participate. Research
shows that while UGC is already wielding influence over some product categories and
segments of broadband users, its influence is still in an early adopter phase, at the time
the paper was written.
28
Data Analysis & Interpretation
Age
121 respondents
Analysis
Out of the 121 respondents, 57.9% (70 respondents) were over the age of 40 years old.
28.1% (34 respondents) were between the age of 20 and 40 years only, and only 14%
(17 respondents) were under the age of 20 years old. It can be concluded that a
majority of the sample size taken in this study were over the age of 40 years old.
29
Gender
121 respondents
Analysis
Out of 121 respondents, 67.8% (82 respondents) identified as male, while 31.4% (38)
of the 121 respondents identified as female. One respondent selected the ‘Prefer not to
say’ option. It can be seen that a majority of the respondents are male. As seen in the
review of literature, the gender differences in online consumer behavior have been a
focus of study, though the research is still in its initial stages.
30
Current Status
121 respondents
Analysis
Out of 121 respondents, 66 (54.5%) were employed, while 55 (45.5%) were
unemployed. It can be seen that most of the respondents are employed and financially
independent, which could be better for the study since they would have more agency
over their purchase decisions, and would be more cautious with their buying behavior.
31
Do you have Internet access via your personal phone or any other
wireless device?
121 respondents
Analysis
Out of 121 respondents, 118 (97.5%) said that they had access to the Internet via their
personal phone or some other wireless device. Only 3 (2.5% of the respondents) said
that they did not have access to Internet on their phones. Since almost all of the
respondents have access to Internet access, they can surf the internet for information
related to products and services.
32
Are you a social media user?
121 respondents
Analysis
Out of 121 respondents, 95.9% (116) of the respondents said that they were a user of
social media. While 4.1% (5) of the respondents said that they were not a social media
user. Almost all of the respondents agreed to being active social media users, thus the
data collected from them can be considered reliable.
33
How much time do you spend on social media per day?
121 respondents
Analysis
Out of 121 respondents, 49 (40.5%) of the respondents said that they spent up to one
hour a day on social media. 44 (36.4%) of the respondents said that they spent about 1
to 3 hours a day on social media, while only 28 (23.1%) of the respondents said that
they spend over three hours a day on social media. We can see that about 40 percent
of the respondents spent at least an hour a day on social media.
34
Which of the following sources do you use before buying a product or
service?
Social Network
121 respondents
Analysis
Out of 121 respondents, 34 (28.1%) selected option 3. 25 (20.7%) selected option 5,
23 (19%) selected option 4, 22 (18.2%) selected option 1, and 17 (14%) of the
respondents chose option 2.
35
Microblogs (Twitter)
121 respondents
Analysis
Out of the 121 respondents, 74 (61.2%) respondents chose option 1. 18 (14.9%)
respondents chose option 2, 16 (13.2%) chose option 3, 7 (5.8%) respondents chose
option 5, and only 6 (5%) chose option 4. We can see that more than half of the
respondents chose option 1, which signified ‘not at all’. It can be concluded that less
than ten percent of the respondents used Twitter and other microblogs for market
research before buying a product.
36
Blogs
121 respondents
Analysis
Out of 121 respondents, 67 (55.4%) respondents chose option 1 and 24 (19.8%) chose
option 2. 18 (14.9%) chose option 3, 9 (7.4%) chose option 5, and only 3 (2.5%)
chose option 1. Since option 1 signifies ‘not at all’, we can conclude that a majority of
the respondents do not refer to online blogs to find information on products and
services.
37
Search Engines (Google)
121 respondents
Analysis
Out of 121 respondents, 39 (32.2%) chose option 5, 23 (19%) chose option 4 and 21
(17.4%) chose option 3. Option 2 and option 1 was chosen by 19 (15.7%) of the
respondents each. Option 5 signifies ‘very much’, implying that a lot of the
respondents turn to search engines such as Google for searching about a product or
service during their buying decision process.
38
YouTube
121 respondents
Analysis
Out of the 121 respondents, 35 (28.9%) respondents chose option 5, 29 (24%)
respondents chose option 4 and 21 (17.4%) chose option 1. Option 2 and 3 was each
chosen by 18 (14.9%) of the respondents. We can see that a lot of the respondents also
turn to video format sites, such as YouTube for searching up about a product or
service that they might be interested in.
39
Before a purchase, where do you search more for information?
121 respondents
Analysis
Out of 121 respondents, 105 (86.8%) of the respondents said that before making a
purchase, they looked to the Internet (Social Media) for information, in comparison to
13.2% (16) respondents who said that they preferred traditional media (TV, Radio,
Newspaper) for information before they purchased something.
40
Compared to traditional media, what are the advantages of using social
media?
121 respondents
Analysis
Out of 121 respondents, 74 (61.2%) respondents said that according to them, social
media is more advantageous than traditional media since there is more information
and the information is more easily accessible. 21 (17.4%) of the respondents said that
there is better communication with other consumers and sellers through social media,
while 14 (11.6%) respondents said that social media is more time efficient. 12 (9.9%)
of the respondents said that there is more reliability in the information accessed
through social media than through traditional media.
41
Do you think that social media has enhanced your knowledge regarding
different products and services?
121 respondents
Analysis
Out of 121 respondents, 33 (27.3%) respondents chose option 1. 30 (24.8%)
respondents chose option 2, 31 (25.6%) chose option 3, 15 (12.4%) chose option 4,
and 12 (9.9%) chose option 5. Option 1 signified ‘absolutely agree’ while option 5
signified ‘absolutely disagree’. It can be concluded that a lot of the respondents
believe that social media has enhanced their knowledge regarding different products
and services.
42
What drives your attention in social media?
121 respondents
Analysis
Out of 121 respondents, 49 (40.5%) respondents said that their attention goes to a
product based on whether the product is important to them or not. 45 (37.2%)
respondents said they see how much a product has been liked, commented on and
shared by others, 36 (29.8%) respondents said they are attracted to the visual elements
of advertisements and products, while 37 (30.6%) respondents said that the frequency
of exposure of products/ advertisements drew their attention to products online. 4
respondents wrote their own answers in the ‘other’ option, out of which 2 are rejected
due to incomprehensible language, while one mentions ‘no reason’. Another response
mentioned the relevance of the product as the factor that draws their attention to a
product online.
43
Have you bought anything unplanned due to frequent social media
exposure of the product or service?
121 respondents
Analysis
Out of 121 respondents, 72 (59.5%) chose option ‘no’, meaning that they never
bought anything unplanned due to frequent social media exposure of the product or
service, while 49 (40.5%) of the respondents said that social media did influence them
to buy something that they previously were not planning to buy.
44
What pushes you to buy products exposed in social media?
121 respondents
Analysis
Out of 121 respondents, 51 (42.1%) said that positive comments of previous users
encouraged them to buy the products exposed on social media. 37 (30.6%) of the
respondents said that videos and photos of the product posted by other users, and 21
(17.4%) respondents said that seeing friends and acquaintances using products on
social media encouraged them to buy the product too. 7 (5.8%) respondents said that
the desire to be like others influenced them to buy products from social media, while 3
(2.5%) respondents said that they bought the products to change others’ opinion about
them. One user said that nothing pushed them to buy products exposed on social
media, and another said that they bought the product if it was of use to them.
45
If a product goes viral on social media, how do you think it affects you?
121 respondents
Analysis
Out of 121 respondents, 36.4% (44 respondents) said that if a product goes viral on
social media, then they consider it as a potential alternative for buying in the future,
while 35.5% (43 respondents) said that a product going viral on social media did not
affect them at all. 25 (20.7%) respondents said that in such a case, their thoughts and
attitude about the product can change, for better or for worse). 9 (7.4%) respondents
said that if a product goes viral on social media then they buy it.
46
If you are not satisfied after buying a product, how do you show your
dissatisfaction?
121 respondents
Analysis
Out of 121 respondents, 64 (52.9%) respondents said that if they are dissatisfied with
a product then they complain directly to the company, either physically or via e-mail.
21 (17.4%) respondents said that they don’t complain, instead they just don’t buy the
product anymore. 15 (12.4%) respondents said that they complain about the product
anywhere on social media, through comments. 10 (8.3%) respondents said they post
different content (photos or videos) to show their dissatisfaction, and 9 (7.4%)
respondents said that they discuss with their friends and family. 2 respondents said
that they just return the product in valid time period.
47
How do you consider the social media impact on each of the stages of
your consumer decision making process?
121 respondents
(In this section, option 1 signifies ‘not at all’, option 2 signifies ‘little’, option 3
signifies ‘some extent’, option 4 signifies ‘rather much’, and option 5 signifies
‘very much’)
Need Recognition
Analysis
Out of 121 respondents, 47 (38.8%) respondents chose option 3. 21 (17.4%) of the
respondents each chose option 4 and 2. 17 (14%) respondents chose option 5 and 15
(12.4%) respondents chose option 1. Option 1 signified ‘not at all’ and option 5 meant
‘very much’.
48
Information Search
Analysis
Out of 121 respondents, 34 (28.1%) respondents each chose option 3 and 4. Option 5
was chosen by 27 (22.3%) respondents, while 18 (14.9%) and 8 (6.6%) respondents
chose option 2 and 1 respectively.
49
Alternative Evaluation
Analysis
Out of 121 respondents, 51 (42.1%) respondents chose option 3, 23 (19%)
respondents chose option 4, 21 (17.4%) respondents chose option 5, 19 (15.7%)
respondents chose option 2 and 7 (5.8%) respondents chose option 1. We can see
more than half of the participants chose the middle option.
50
Purchase Decision
Analysis
Out of 121 respondents, 39 (32.2%) respondents chose option 3. 31 (25.6%)
respondents chose option 4. 24 (19.8%) respondents chose option 5, 17 (14%)
respondents chose option 2 and 10 (8.3%) of the respondents chose option 1.
51
Post-purchase Behavior
Analysis
Out of 121 respondents, 40 (33.1%) respondents chose option 3. 27 (22.3%)
respondents chose option 4, 24 (19.8%) chose option 5, 22 (18.2%) respondents chose
option 2, and 8 (6.6%) respondents chose option 1.
52
Findings
As a general conclusion of the convenience sampling studied in this paper, we can say
that consumers spend a lot of time on their phones, and most of that is spent on social
media. Surprisingly, a majority of the consumers in the survey turned out to be 40
years or older. We need to keep this finding in mind while studying the responses to
the other questions. From the findings we can conclude that older, employed adults
were the main participants of this paper.
The most used social media by the respondents turned out to be Facebook, Google,
and YouTube. We can see that the interactive environment of platforms like
Facebook, the straight forward results from search engines like Google and video
format of YouTube might be the most attractive to the demographic studied in this
paper.
In the last part of the survey, it can be seen that most of the participants chose the
third option, which signified ‘rather much’ out of the five options in the Likert scale
provided. This is known as the response bias. This is a particular problem with self-
reporting participant surveys. The term response bias refers to the various conditions
and biases that can influence survey responses. In the case of the current paper, it
would seem that the participants could not comprehend the questions asked properly,
and hence chose the safest option – the middle option.
53
Conclusion
In conclusion, in the past decade, a lot of research has been done on the relation
between social media, internet and its impact on consumer behavior, and a lot of
important contributions have been made along the way. Though this research doesn’t
offer any new insights into the literature on the impact of social media on consumer
purchasing and decision-making behavior, it does affirm some of the findings of past
papers.
In the SWOT analysis studied in the paper, we can see that social media presents us
with various opportunities and threats, while having both strengths and weaknesses.
As long as sellers focus on their strengths and the opportunities presented by social
media, while keeping in mind its weaknesses and threats, they should be able to utilize
social media to its fullest potential for their businesses.
Similarly, the consumers need to keep themselves updated with changes in social
media marketing too, so as to know what they really need and want, and keeping
themselves safe from online threats.
From the findings of the survey, we can conclude that there is a relation between
social media and the decisions and purchases that a consumer makes.
Search engines on the Internet like Google and social networks are the main source
that people turn to in order to obtain information on products and services. Businesses
in India can use this to their advantage and increase their online presence and
engagement.
Social media, which includes the content, visuals, promotions, discounts and
influencers, has the ability to influence the buying behavior of consumers.
The effects of social media on consumer behavior cannot be ignored by brands and
businesses.
A Deloitte report highlighted that consumers who are influenced by social media are 4
times more likely to spend more on purchases. Moreover, the influence can be so high
that 29% of consumers are more likely to make a purchase on the same day of using
social media.
Companies should focus on customer engagement and online presence in order to
serve customers and satisfy their needs.
54
Suggestion
Literature on social media consumer behavior is ever-growing and increasingly
relevant in the digital age. Researches till now have mostly considered how
consumers use information available to them in online social environments.
Consumers’ behavior other than those related to online reviews and word of mouth
should be considered.
Businesses in India should improve their social media usage and presence.
We can say that frequent exposure of something on social media, especially if it is a
marketing strategy, can influence people to buy the product. However, more research
into the matter would be advised.
Researchers should also consider important topics that have emerged in the past few
years, especially consumer privacy issues in the context of digital marketing and
social media.
55
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58
Appendix
59
Blogs
Search Engines
(Google)
YouTube
8. Before a purchase, where do you search for more information?
In traditional media (TV, Radio, Newspaper)
In Internet (Social Media)
9. Compared to traditional media, what are the advantages of using social
media?
There is more information and easier access
Information Reliability
They’re time efficient
Better communication with other consumers and sellers
10. Do you think that social media has enhanced your knowledge regarding
different products and services?
(1 – Absolutely Agree, 5 – Absolutely Disagree)
1 2 3 4 5
11. What drives your attention in social media?
(Mark all the options that you agree with)
The frequent exposure of products/ advertisements
Visual elements of advertisements and products
How important a product is to you
How much a product is liked, commented on, and shared by
others
Other:
12. Have you bought anything unplanned due to frequent social media
exposure of the product or service?
Yes
No
13. What pushes you to buy products exposed in social media?
Posted videos and photos of the product
Positive comments of previous users
Friends and acquaintances using the product on social media
60
The desire to be like others
To change others’ opinion about me (via social media posts)
Other:
14. If a product goes viral on social media, how do you think it affects you?
My thoughts and attitude towards that product can be changed
(for better or for worse)
I consider it as a potential alternative for buying in the future
I buy it
It doesn’t affect me at all
15. If you are not satisfied after buying a product, how do you show your
dissatisfaction?
I complain directly to the company (physically, or via e-mail)
I comment regarding the product (anywhere on social media)
I post different content showing my dissatisfaction (photos,
videos)
I discuss with my friends and others
I don’t complain, I just don’t buy that product anymore
Other:
16. How do you consider the social media impact on each of the stages of
your consumer decision making process?
(1 – Not at all, 5 – Very much)
1 2 3 4 5
Need Recognition
Information Search
Alternative Evaluation
Purchase Decision
Post-Purchase Behavior
61