The Influence Of Social Media On Consumer Purchasing Behavior

Positive and negative influences of social media on consumer purchases

Does social media affect the consumer purchasing behavior? Social media becomes the most significant tool or platform that helps the people to connect with the people and organizations. Social media is used by the various people or organizations to share their experiences, information, reviews and data. It becomes easy to analyze the behavior of the consumers through social media platforms. There are various studies that evaluate the importance of social media information for the people for their future purchases or future planning. This research Project is of great use as it helps to analyze the role of technical revolution on the traditional marketing approaches. There are many marketers are using the social media as its advertising strategies and take full advantage in order to attract the more customers for the business. Social media and consumer purchasing behavior are the two different concepts and they both are influencing each other to a great extent.

Consumers and businesses have been more connected because of the presence of internet and technologically revolution. Therefore, the whole research revolves around the positive as well as negative influences of social media platforms on the consumer purchases. Social media is very effective tool which keeps going every day and it is estimated at around 500 million connecting with social media such as Facebook, Instagram, twitter, YouTube and LinkedIn. The goal of this research report is to ascertain influence of social media on consumer purchases through the review of selected literature on social media and also by conducting some quantitative research.

The main objective of this research is to gather, analyze and conclude all the necessary data and findings related to the influence of social media on consumer purchases and narrow down the focus on decision making processes of the consumers associated with the social media. Because of the technological revolution and increasing use of internet, consumer behavior and social media becomes a relatively challenging and broad topic.  Looking at the previous records and studies, it is estimated that Facebook has more than 600 million daily active users. Approximately 30 million pieces of content has been Shared on Facebook on monthly basis whereas 500 million tweets per day has been sent on the twitter. Moreover, the Global average time spent on social networking sites is 6.9 hours by a single person. Therefore, the use of social media sites by the marketer becomes the most important aspect of the consumer purchases. Acknowledging all these key aspects of consumer behavior, the objective of this study is to explain when, why and how social media has influenced the consumer purchases. Besides, the research will also focus upon the positive as well as negative influences on the companies and customers in the new marketing era (Maryanne, 2017).

Selecting and conducting this project from the perspective of consumers would be suitable approach with regard to the objective and this research project selection will help in both ways like academically as well as professionally. It is analyzed that there are many studies and reports to help the companies to gain better understanding in social media marketing but not to help the people or consumers to identify the benefits of social media in purchasing decision making. The reason behind choosing this topic is to build up the important ideas in order to determine the social media influence on the consumer buying behavior and suggesting some ideas to organizations to make effective marketing strategy.  Individuals are more active on the social media sites these days because of the rapid growth of the internet users. Also, the business promotions and the communication with the large number of people are connected with the social media approaches as well as the consumer behavior. Moreover, I found this topic very interesting because this research will help in the future also to analyze the changing nature, tastes and preferences of the consumers. This research project aims to serve as an indicator and guideline to all the potential companies to determine the taste and preferences of the consumers via social media sites and also highlights the various factors such as Technology, Cultural values and norms that affect the consumer purchases. Social media and its impact on the consumer purchases is no longer a new aspect because it is still considered as a developing an evolving topic. The information shared on the social media websites is a very helpful source because it influences the consumer decision making behavior. This topic is very broad and challenging because of the involvement of various social and technological factors (Fotis, 2015).

Decision making processes of consumers associated with social media

There are many studies already conducted in the previous years on the consumer behavior and how they are influenced by the social media. Consumers are the ones who purchase the products and services offered by them. According to the scholars, consumers are the most important part for any business activity and business would not exist without the consumers.

According to the viewpoints of the various economists, consumer behavior is defined as the attitude or style of the consumers when they try to buy some products or services. Consumer behavior is basically a process of taking decisions, especially when thinking about the purchase of a product. Consumer behavior is different for different products and brands. Consumer behavior is the reaction of the people towards the particular product or the number of alternatives. The behavior of every consumer is different from one another and has a different perspective or criteria to take their buying decisions (Anoche, 2017).

The traditional ways used by the business are the Radio, TV and the print media for the advertisement and these ads incurs high cost. On the other hands, the social media are the cost effective strategy as the posting of the business ads on the Facebook and other channels of social does not include high costs. The need of the further research arises because of the confusing and mixed views found in the previous studies and because of the gaps in the studies, this research report is carried out to find out the role of the social media in the buying behavior of the consumers. In the previous studies, there are many authors who gave their viewpoints in the favor of the social media and some of them are against these platforms. The conflicting views of the researchers forced to carry the further research.  In the context of trust and intentions of people, the authors like Ba and Pavlou (2002) said that there are two dimensions of the trust that is benevolence and creditability. Benevolence means consumers want to trust on the same users of the product and credibility means sharing of the relevant information through the social media platforms and people can trust on these online user reviews and good reviews always useful for the organizations (Chen, 2014).

According to the previous researches, there were many traditional ways to attract the customers for their products which includes the advertising campaigns, magazines, newsletters, etc. but people use the online marketing nowadays.  As per the social media networks reports, Facebook is the most used social platform which influences the decision making of the customers (Duggan & Brenner, 2013). In May 2012 year, Facebook has over 900 million users. This platform is used to share the photos, information, videos with friends and can search many people from their name or mail id.  The main motive of these social network platforms is to give power to the people to share their information and make the world connected and open.

According to the research of Kaplan and Nick, they analyzed that there are many several social media networks which are used by the various businesses because of its unique advantages (Kaplan & Haenlein, 2010). However, the recent trends show that all the social media networks become the main source of information for the various customers. According to Nick Hafele, business can generate brand awareness s among the people by sharing the information with the customers through blogs and by updating the new products of the company through online mode (Adilova, 2017). According to him, there is a still need to diversify the social media to ensure that information that is being shared with people is going to the appropriate audiences (Al-Dhuhli, Mukhaini, & Ismael, 2015).

Effective marketing strategies for organizations

After analyzing the previous literature, it is clear that the main focus was given on the better understanding of the social media marketing instead of analyzing the effect of the social media on the consumer purchases. There are many gaps has been found and this research project may contribute to fix all the research gaps. However, the research questions are given below on which this research project is based upon.

1. What are the factors influencing the buying behavior of the consumers during the purchase through social media?
2. How all the customers or people collect, analyze and select the information on social media before any purchase.
3. What are the different changes social media has brought to consumers in different stages of their decision making?
4. How the companies use social media platforms to build the cost effective strategies as a marketing tool?

Research methodology is the word that is used for the method of conducting the research in an appropriate way with the help of various tools and techniques.  The purpose of this research methodology is to determine the influence of the social media on the consumer behavior and also focuses on the important factors that help in changing the attitudes, behavior of the customers.

Research techniques

In order to understand the project, we followed the exploratory approach on the social media role in changing the buying behavior of the customers. In this study, the primary data was collected with the help of the online survey by distributing the questionnaire. A sample of the 100 respondents out of 500 has been taken who answered the questionnaire and this sample was drawn on the basis of the age, gender and tastes and preferences of the respondents.  All the respondents were social media users. We have used the quantitative research design methodology in order to determine the best results of the research project (Lee, 2013).

Data collection procedures

The quantitative research methodology is used for the collection of information from various primary sources. The best way to collect the primary data is questionnaire and interviews. The primary data is collected by doing survey with customers who purchases product through online. The use of the social media while purchasing the products was measured by asking the multiple choice questions from the social media users. The respondents were asked to indicate how, when and why social media sites used before any purchases. The questionnaire consists of multiple questions related to the actual purchasing experiences of the consumers. Moreover, the information gained through the survey must be kept private and confidential.  The authenticity and validity of the results can be calculated and measured by the test of the reliability. If the collected data are valid and reliable, then there is also a possibility that the results will be valid and accurate (Ioanas & Stoica, 2014).

Analytical techniques

The validity and the reliability of the results were assessed by a CFA (Confirmatory factor analysis which was used to test the most likelihood approaches. This analytical approach simply provides the information and various factors that that need to be considered while collecting the data. This is basically a statistical tool which is used to confirm or reject the various assumptions and the measurement theories (Hajli, 2015).

Timeline

This research project involved numerous activities such as the review of literature, collection of data, preparation of the questionnaires, and analysis of the data in order to reach the final conclusion. The below Gant chart depicts the various activities with the time:

Activities	1st week	2nd week	3rd week	4th week	5th week	6th week	7th week	8th week	9th week	10thweek
Weeks
Introduction
Literature Review
Research Design and Methodology
Questionnaire Preparation
Distribution of Questionnaire
Analysis of Data
Findings
Conclusion

Selected literature on social media

Also, it is required to consider all the ethical issues while doing some research on the topic. Some of the issues faced by the researcher can be related to the collection of the data as it is very difficult to convince all the participants to take part in the questionnaire survey. There are many steps that we can take to avoid the issues before starting up the research work. Under the data protection act 1998, it is necessary to maintain the confidentiality of the data.

This research was designed to identify the impact of the social media on the consumer purchases and it included the various methods to find out the better outcomes. The Whole research was based on the quantitative research techniques and data was collected with the help of the questionnaires. All the findings and results of the research survey have been represented in the form of graphs and the charts. The objective of this research was to find out why, when and how this social media influences the consumer purchases. It was analyzed in this research that opinions and the reviews shared or posted on the social media websites greatly affects the buying decisions of the consumers. This research gave the explanation of the various factors that considered by the buyers before making any purchase.

The findings and the conclusions presented in this research are highly based on the selected sample of the respondents and those results were valid and accurate. On the other side, these results did not provide the bigger picture of the topic because of which reasons it was recommended to conduct the future research.

The main objective of this study is to find out the viewpoints of the customers and their expectations while purchasing a product or any services. This phenomenon involves the perception of the customers as well as their changing consumer behavior, so it is possible through conducting research through the questionnaire sessions with the customers who have the experience of traditional as well as online shopping.  Therefore, the best part of this survey that all the participants in this survey are volunteers. There are many ethical values which are important to consider. The data that is collected is currently based on the surveys and feedback of the customers. The main purpose of this research is to find out the answers of the research questions with the help of Data Collection tools. However, questionnaire was used in this research as a data collection tool in order to match the research Design efficiently to the research questions. The population that was mainly focused in this research made up of the consumers using social media tools before purchase and who have different demographic and social economic features.  However, the objectives of this research report are:

• To find the positive as well as the negative influence of the social media on the consumer behavior
• To determine the advantages, disadvantages of the social media and its impact on the business performance as well as on the marketing of the products. 
• To identify the change in the consumer buying behavior of the consumers because of the social media online websites.
• To understand how the traditional media are obsolete and how are social media successfully to gain market penetration with cost effectiveness (Autos, 2017)

In order to identify the influence of social media on the consumer purchases, the research has gone through various steps. The research identified the population and sampling design as well as various sampling technique and data collection methods. Research Planning involves the various tasks including Research designing sampling and data collection methods and analysis of data. In this research project, sample size is not very large as it consists of 100 people of different age group. The consumers who are using the social media before purchasing were selected by a random sampling method. Questionnaires were prepared on the basis of the research questions and selected review of literature in order to determine the effect of social media on consumer purchases (Oketch, 2014).

Quantitative research

Research Design is basically of blueprint for the research process which shows exactly how the research was conducted in technical terms and how the data collection instruments were used during the specific tasks.  The research design refers to the different type of approaches that can be used for the research work and that include the different strategies with a purpose to receive the reliable and accurate data for the better results. The research is on the topic of the extent of influencing the customer behavior through social media platforms, and this is done by using the various tools and techniques, actions methods and with the help of other approaches. Research strategy is the other name of the research design approaches. The Quantitative approach is found useful in the collection of the primary data for understanding the human behavior. This is useful because participants in the survey are the people who have the great experience of buying the products (Alsubagh, 2015).

In this research project, primary data collected with the help of administration of questionnaires which was designed according to the research objectives and this questionnaire include open as well as close ended questions such as in the form of likert style and multiple choices. The questionnaire was divided into 2 sections. First section of the questionnaire basically include those questions related to the demographic information of the respondents such as gender, age and their time spent on the social media sites. On the other hand, second section includes the general questions related to the impact of social media on the consumer purchasing decisions. After the preparation of the questionnaire, all these were distributed among the consumers using the social media sites on daily basis and then gather the data to analyze the final results with the help of the analytical techniques (Hayta, 2013).

Data collection tool

This survey includes the multiple choice questions based on the consumer behavior and the influence of the social media on the purchasing of the customers. This questionnaire is distributed among the customers and individuals through online mode. There are two types of questions used in the survey questionnaire and these open ended and the closed ended questions. In the open ended questions, the participant has to provide the own answers as no options are provided on these type of the questions. The closed ended questions consist of the multiple choice questions and these questions are more appropriate because it saves time of the participant as well as provide the short and precise responses (Flórez, Restrepo, & Arango-Botero, 2017).

Ethical considerations

Ethical considerations are also the most important aspect of the survey as we need to follow some ethical values and principles.  All these ethics and values are essential to identify the moral information. The data that is collected is currently based on the surveys and feedback of the customers. The most important ethical consideration that we have to take into account is the authenticity and confidentiality of the collected data. First of all, before distributing this questionnaire survey among the customers, we should take care that there will be a volunteer participation of the customers (Ertemel & Ammoura, 2016). During the research project, confidentiality is the main ethical concern. Except this confidentiality ethical principle, there are many other ethical concerns also such as social responsibility, on objectivity common and informed consent. There are many professional organizations and Agencies adopted codes and policies especially in order to maintain the ethical behavior during the research projects. Moreover, during the research it is important to ensure the safety of human subjects and to make sure that human rights are not violated and all the ethical practices are being properly utilized. However, considering the ethical principles during the research work helps to protect the researchers from the legal implications from any kind of unethical behavior (Nolcheska, 2017).

Cost-effective advertising

Therefore, the best part of this survey that all the participants in this survey are volunteers. There are many ethical values which are important to consider while conducting the research and some of the ethical values are mentioned as below:

• Goodwill: The respondents will share their views regarding Awareness, attitude and behaviors only when they are willing to.
• Trust: The trust on the information and the research studies is very important to take the best decisions by the decision makers.
• Confidentiality and professionalism: This survey research is not forcing anybody to participate in the survey as it is totally based on the volunteer participation. The participant can stop or withdraw anytime from the survey whenever they wish too. The information collected through this survey questionnaire must be kept confidential and after achieving the final outcomes of the analysis, this information must be destroyed by the company (Ayarekar, 2015)

Findings

As the survey is conducted through the questionnaire data collection tool, so there were more than 500 respondents who answered the questionnaire. For this research, we took the sample of 100 respondents. Also, there are many people who did not respond during this survey. The frequency and percentage has been shown in below table.

Respondents	Frequency	Percentage
Response	583	97%
No response	17	3%

1. Age group of Customers

For this research the customers of the age group of above 18 years were considered and the different age groups are shown in the below table: 

Age group	Frequency	Percentage
1 to 19	10	10%
20 to 30	40	40%
30 to 40	25	25%
40 to 50	15	15%
More than 50	10	10%
Total	100	100%

From the above table, it is clear that the maximum customers who have responded to the survey belonged to the 20 to 30 years and their percentage is 40%. The second largest group of 25% belonged to the age group of 30 to 40 years.  Only 10% respondents belonged to the age group above 50% which is very minimum percentage.

2. Location of the respondents

This information was collected through online survey, where the question related to their location has been asked from the respondents. It has been found that the main people who responded during the questionnaire survey belong to the UK, USA and Australia countries.

Location of Respondents	Frequency	Percentage
UK	27%	27%
USA	23%	23%
Australia	28%	28%
Others	22%	22%

3. Gender of Customers

There are 65% of the respondents are males and the rest of the 35% were the females. The following table shows the gender of the customers and the composition, who have responded to the survey.

Gender	Frequency	Percentage
Males	65	65%
Females	35	35%
Total	100	100

4. Online buying frequency of the consumers

It is observed that the people are very much interested to buy the products through online to save their time and money. The frequency to buy the online products is increasing day by day which is very good for the business prospective.

Buying frequency	frequency	percentage
Once in a week	40	40%
Once in a month	29	29%
After 6 months	21	21%
After one year	15	15%

There are 35% people in the favor of buying products once in a week and that is around 60% participants buy the products very frequently like once in a month.

5. Why do you prefer social media platforms and what is main reason behind this usage?

6. Best social Media platform

The survey with regard to the social media platforms observed that the Facebook is the best platform as per the latest trends, use and needs of the consumers.

The above graph demonstrates the comparison of the different platforms and the 70% of the people are using Facebook in their daily life and found it most useful as compared to the other platforms. Moreover, Facebook marketing is the best strategy to improve the growth of the business.

7. Do you interested in following the Facebook pages of the top brands?

8. What of the following factors do you most likely to consider while taking a decisions regarding the shopping at a particular store or not.

9. What is the main mode of receiving the retail promotions?

Traditional advertising

10. Does your decisions highly influenced by the opinions and reviews posted on the social media sites?

From the above findings, it is clear that the consumer purchasing decisions are highly influenced by social media platforms. There are 65% of the respondents who prefer social media platforms for the shopping purposes. There are around 82 respondents out of 100 who followed the Facebook pages of the different brands which show that the consumer decisions are highly based on these social media platforms, the information posted on these pages as well as the reviews posted on these social media platforms by the other people also.  However, it is analyzed that the opinions and the reviews shared or posted on the social media websites greatly affects the buying decisions of the consumers. The below chart also depicts the maximum respondents feel that their decision is highly dependable on the reviews and the opinions shared on the social media websites. Every person either businessman or the customers always consider these reviews before taking any decision. For example- If a customer wants to purchase any product through online shopping portal, then his decision is influenced by the reviews and information of product posted on these social networking sites.

Moving further, it is also found that the consumers or buyers gone through the number of stages before taking any purchase decision such as Awareness, discovery, intent, evaluation and Buy.

All the social media platforms are the main source of creating awareness among the customers and the repeating ads on these platforms attracts them to buy the products. According to the buying model also, it is clear that the customers has to gone through the number of stages in order to take a one right decisions.

Research aims and objectives

The above research was a success to a great extent in order to achieve the research objectives. The research outcomes were useful in achieving the research objectives and aims.  According to the above findings, it is identified that the social media platforms becomes the essential part of the stages involved in consumer purchases. After analyzing the collected data, the results have shown that the social media has provided the more powerful platforms where the new products and services to be noticed by the consumers in a very easier way because there are millions of the people who are using the internet and social media profiles on daily basis such as Facebook, Instagram, LinkedIn and YouTube.  The evaluation of the results or findings has also shown the important factors that buyers consider before purchasing any product which includes the user reviews, family and friends’ opinion, social media advertisements, consumer complaints and the ratings given by the other people. Also, looking at the previous literature, it is evaluated that the there are many theories related to this subject which can be applied to understand the impact of the social media platforms on the consumer purchases. The general perspective was that the technological revolution brought many changes in the consumer purchasing. On the other side, the research was failed in the terms of providing the bigger picture of the research topic. Because of this reason, there is a need to conduct the future research.

Validity and reliability

The authenticity and validity of the research outcomes has been calculated and measured by the test of the reliability. The collected data were valid and reliable because it is based on the primary data and on the volunteer participation of the respondents.

Merits and demerits of research

There are many benefits of conducting this online survey and collecting primary data. The degree of accuracy in the primary data collection is quite high as it does not need any extra caution. Also, the plus point of gathering primary data is that it helps to depict the data in a great detail (Ozer, 2012).  The demerits or pitfalls in this research method are that it requires a lot of time in the collection of the data through the customer online survey and also in some cases; it is quite difficult to collect the data.  Collecting the primary data through questionnaire requires a lot of skill. The limitation of this study is that the whole research is based on the responses given by the different participants of the online survey. However, there are very less chances that all the participants will give the honest answers or replies; therefore, the credibility of the report is dependent on the honesty of the employees (Jashari, 2017).

Conclusion

The main objective of this research was to find out that to what extent the social media has impacted on the consumer purchases and also explain the main factors that consider by the consumers during purchases.  The overall research was designed to identify to the impact of the social media platforms such as Facebook, Instagram and many others on the consumer purchases.  To begin with the literature review, it is identified that the social media platforms brought immense changes in the consumers and businesses all around the world.  Also, the collected data also evaluated which shows that the consumer purchases has influenced by the social media to a great extent. The outcome of the survey through questionnaire has provided the great assistance in achieving the research objectives. 

Considering the limits of time and scope of this research, there are many theories and concepts which were not covered in this research and also it was a broad topic so it is very difficult to provide the bigger picture for the readers. So the main focus was given on the general perspectives of the consumer behavior.  Therefore, the future research could be conducted to provide the bigger picture of the topic to the readers as well as to achieve the research objective in an effective way (Ayarekar, 2015).

It would be great and quite useful to take the case company as a reference for the future research for the better understanding of the subject area. There were many areas and theories which were avoided during the research and it is recommended to consider all the perspectives in a broader way.  It is also suggested that the vague findings and conclusions could be achieved if we will take the case companies and apply some of the theories in the future research.

References

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