A

Project Report on
“Social media and consumer buying behaviour”

For the award of degree

MBA
(Masters of Business Administration)

Submitted By: SubmittedTo:

Sharmishtha Ghosal Dr. Vijay Jain

Naundita Gupta (Faculty of Management Studies)

Certificate

This is to certify that the Project Work titled “Social media and consumer buying
behaviour” is a bonafide work carried out by Sharmistha Ghosal & Naundita
Gupta student of Master of Business Administration (3rd Trimester) ofDIT
University, Dehradun
 Acknowledgement

A successful project can never be prepared by the single effort or the person to whom
the project is assigned, but it also demand the help and guidance of some conversant
person who helps in the undersigned actively in the completion of successful project.

Well, that was quite scripted. In our words, we just want to thank Prof. Vijay Jain for
guiding us in the right direction.We also want to thank forgiving us the relevant
information which we want who allow us to conduct survey for this project in social
media and buying behaviour.

Sharmishtha Ghosal

Naundita Gupta
 Introduction
So how big deal is social media?
Very big indeed. To give you an idea of numbers, when last updated there were:-

 More than 110 million blocked being tracked by a specialist blog search engine, up from
63 million at the beginning of the year.
 An estimated 100 million videos a day being watched out by video sharing websites,
YouTube, Facebook, Google, Instagram etc.
 More than 200 million profile created by users on social media.

Social media is a relatively recent phenomenon. Over the last decade, the WorldWide Web has seen a
proliferation of user-driven web technologies such as blogs, social networks and media sharing
platforms. Collectively called social media, these technologies have enabled the growth of user-
generated content, a global community, and the publishing of consumer opinions.
This movement now dominates the way we use the web and has given rise to popular platforms like
Facebook, YouTube, Instagram and Twitter, where people connect, produce and share content.The
social media revolution has led to new ways of seeking and obtaininginformation on the multitude of
products and services in the market. It has enabled consumers to connect and discuss brands with
each other quickly and easily. Consumer opinions on products and services are now increasingly
dominated by strangers in digital spaces, which in turn influence opinions in the offline space. Social
media have empowered consumers, as marketers have no power over the content, timing or
frequency of online conversations among consumers. The use of social media by consumers is
anxiously followed by marketers, but not much is known about how it influences the consumers’
decision-making. Many studies focus on consumer behaviour in the online shopping environment, but
without consideration of the effects of the internet on the different phases of consumers’ decision
process.
 OBJECTIVES

 To analyze why, when and how social media has impacted on consumer decision making
Process

 To identify reasons that tempt consumers to purchase online

Consumers and businesses around the globe have been more connected than ever before with the
presence of Internet. An average Internet user has 669 social ties (Hampton et al. 2011);
Facebook has more than 600 million daily active users, with over 1.5 million business pages
(Facebook 2013), and 30 billion pieces of content shared on a monthly basis (McKinsey 2011).
Approximately 500 million Tweets sent per day, at about 600 Tweets per second (Tweeter 2012).
LinkedIn has more than 225 million professionals worldwide, including all Fortune 500
companies (LinkedIn 2013). The global average time spent per person on social networking sites
is 6.9 hours per month (Delaney and Salminen 2012). Changes in consumer behavior due to
social media are one of the most intriguing aspects in the contemporary marketing.
Acknowledging that consumer behavior is a relatively general and broad topic, which it would
be challenging for the researcher to gather, inspect and conclude all the necessary data and
findings into one research; thus, the researcher has narrowed down the focus in association with
the decision making process, which associates with marketing through social media. The
objective of the research is to explain why, when, and how social media has impacted on
consumer decision making process. Besides, perhaps, with this particular perspective the
research holds, it can help to identity what are the opportunities and pitfalls companies are facing
with this impact on consumers’ decision making in order to seize and embrace the possibilities in the
new marketing era
 LITERATURE REVIEW

Social media have changed how buyers and sellers interact, and increased involvement through
social media may yield positive results for sales organizations if salespeople utilize it facilitating their
behaviors. (raj agnihotri,2016) The influence of social media on buying
behavior can be in any services or products. Quality, brand, advertising or price could effect
consumer decision-making.

In 2003, Western Kentucky University used a sample of 249 consumers' purchases to analyze the
type of product purchased, and the cost of item. The results of this research present that
consumers are buying either inexpensive or expensive items, and are doing so based on
recommendations from social media by their contacts or friends on social media (Forbes &
Vespoli, 2013).

Marketers could consider that social media does influence buying behavior. According to the
recommendations on purchases, 59% of all respondents were using Facebook as their social
media tool when they received a product recommendation. Thirty seven percent of all users were
using Twitter. From these results, social media has influenced their buying behavior.
The relationship between social media and consumer decision-making present that social media
affects advertising attitudes, brand attitudes, and purchasing intentions of consumer. It will not
necessarily affect consumer’s decision-making, but might possess a mediating effect (Taining,2012).

Social media can build brand attitudes that affect buying behavior. The good image of brand or
product can lead the consumer to make decision on their purchases. When consumer’s friend on
social media shares or recommends services or products on their social media, it affects
brandattitude and influences their decision-making. Yet, advertising on social media, which is
provided by commercial sources affect both consumer brand attitudes and purchasing
intention(Yang, 2012). From that information, it helps marketers plan their marketing strategies.
Many marketers use social media for marketing campaigns. It is the easy way to communicate with
consumers; also it is inexpensive to advertise their brands or services.
Social media is not only for advertising, but it can also be a tool for brands or services to
connect with their consumers. Another study shows that social media allow consumers and
prospective consumers to communicate directly to a brand representative. Since most consumers
are using the social media as tool to search and purchase items, brands or services use this
advantage to advertise their products. The online consumer is a booming market worldwide,
however it is giving a globalized level of segmentation cross-culturally (Vinerean, Cetina
&Tichindelean, 2013).
If they have some problems on products or services, consumers could reach the company viasocial
media, which is an easy way to connect and contact with them. Companies are challengedby how
they chose to react to comments or responses on social media. Their reactions and responses can
build strong brand images and get more consumers to purchase products or services. When a
consumer wants to make decision on product, every single detail could be an influence to their
decision-making.

Consumer motives for engaging in social media provide insights into consumers’ activities.
Consumers have three main gratifications or motives for using the Internet as a medium, namely,
information, entertainment, and social aspects (Heinonen, 2011). The motivation is in two main
groups: rational motives, such as knowledge-sharing and advocacy, and emotional motives, such as
social connection and self-expression (Krishnamurthy & Dou, 2008). Consumers’ activities insocial
media have been found based on consumers' conduct online. Nowadays consumers are using
Internet as their tools to achieve their motivations. Their motivation could be connected totheir
old friends, business, or reviews to support their decision-making. Reviews on social media become
second-hand resources to support consumer’s decision-making because they want they want value
from their dollar. Reviews on social media not only affect to expensive items, but
also inexpensive items as well. People can see the reviews on cosmetics, books, cars, hotels, or
even nail polishes. Those reviews can motivate purchases or support consumers decision making
by make it more reasonable to spend the money on it.

Social media does not only effect consumers’ decision making on products or services, but also
it helps in other fields of studies or careers such as political or juror impartiality and fair trials
too. In context of justice system, the easily accessible nature of the Internet has results in jurors
having the ability to consult an online social media source in order to aid their decision-making
and deliberations(Simpler, 2012).

Social media helps juror to broadcast their options about ongoing court. Jurors find some
advantages of information or any evidence that can support their decision and help them making
their decision. Twitter is the most important for sharing news, and information, which is up-todate.
This information may not be confirmed that it is true or not true but at least it will give the jurors
the idea and know what other people think about the case. Today researchers have found that
social media helps jurors to have a wide open vision of the case and can also influence to the
juror’s decision making(Simpler, 2012).

Another study examined the effect of social media on a person's decision-making by sharing
health information on news and social media. The study observed the coverage of influenza
vaccination on Dutch news sites and social media websites. Dutch news sites and social media
websites were promoting the campaigns of influenza vaccine during February, March, and April,
2012. From this study the results showed that news media and social media give different tones
in messages. News media reports tended to be more objective and non-judgmental, while social
media more critical of behaviors of Internet users and may influence the success of vaccination
campaigns and recommendations made by health authorities (Lehmann, Ruiter & Kok, 2013).

However, this study concludes that it was a first step in e-Health announcements. People tend to
respond to the news on social media more than news media. It is att ractive and influences people
on their decision-making due to the Internet and might be an important source of health
information. Since people can’t try travel-related products and services before they consume
them, dynamic processes with various amounts and types of information sources have been used
(Fodness, & Murray,1977). Many studies have found that many travelers used social media as a
guideline for their trip. Reviews of places, hotels, transportation, food, or restaurants could have
large affects on traveler’s decisions. Travel organizations and businesses have used social mediaas
a communication tool for their audience by posting travel information; uploading photos,
warnings, advice, or sharing personal traveler reviews. Those things can influence trip's
decisions and even create future trip destination impressions. Fifty-eight percent of U.S. online
travel used ratings for their travel information: 49% of them checked reviews and
recommendations: 18% used photos and friends’ social network sites : 12% read blogs: and
5%watched videos (eMarketer, 2007) Venkatesh, Speir, and Morris (2002) showed the theory of
social influence affected person’s
decision-making. People participating in social media activities are usually incommunities and
appear to be socially influenced by the community group members. Social influence is defined as
the degree to which a person believes that person to perform a particular behavior (Venkatesh,
Speir, & Morris, 2002). From the social theory, it shows the support of the idea that social media
has become a key influence in a person's decision-making process..., they need confirmation on
what they decide is the best.
RESEARCH METHODOLOGY

TYPES OF RESEARCH DESIGN

This study will adopt descriptive research design and will reveal the impact of
social media on consumer decision making process. This research will be
quantitative in nature.

SAMPLINGPLAN
 Sampling method
 Multi stage sampling
 Purposive sampling
 Convinience Sampling

TOOL OF DATA COLLECTION

 The tool for primary collection data is self-administered questionnaire.

PRIMARY DATA
Primary data are those collected specifically by, or for, the data users by Questionnaire Method.

SECONDARY DATA
Secondary data are those that have been collected by other organizations, such as government
agencies, newspapers and magazines, etc.

Area of The Study

The study will be conducted in areas of Dehradun

Universe
People who are using social media for purchasing.

DATA COLLECTION, ANALYSIS AND INTERPRETATION

We collected the data by using the tools and the data will be coded, tabulated,
analyzed and interpreted using appropriate statistical techniques.
CONCLUSION

The objective of the research was to to explain why, when, and how social media has impacted
on consumer decision making process. Research questions were designed to narrow down the
subject and to help the researcher to identify the explanations of the issue the five-stage
decision making model has provided a systematic approach in outlining the
general stages that consumers engage in all purchase, while the information process theory
addresses an in-depth perspective of how information is in used of throughout the course of
decision making.

The aforementioned theories and the data analysis of the research have both proven that, no
matter it is in association with social media or mass media, consumers are highly selective in
attending, process, and selecting the information before a purchase takes place. Information
exposure is highly selective in the initial stage of information, because consumers have the
selections of information source, in which determinates the type of information that consumer
will be exposed to. To be noted, personal attitude is a crucial factor which underlines during the
course of information acquisition and evaluation. As a result, not only judgments regarding
products or services are presumably based, but also it is a vital determinant of the information
consumers will seek out in which it eventually affects the extent of the information reception.
At the essence, all platforms available on social media have offered a two-way communication
flow, which is highlighted theoretically and practically. Consequently, this principle feature of
social media has created a new landscape in supporting the socialization of information, and has
forced marketers to give up what they old mindset in dealing with mass media marketing.

As the collected feedbacks from the individuals, it has emphasized that, in particular with social media,
consumers are able to access to customer experiences and word of mouth, in which surpasses the
marketing and advertising mumbo-jumbo or polished slogans.
In other words, marketing via social media is more about creating high-quality contents that are
consumer relevant (Drury 2008), instead of being a brash product placement. Moreover,
marketing through social media focuses on building relationships between consumers and
companies. The research findings have shown that the position of the consumer in the new
marketing approach is the centralized gravity, because consumers are empowered. As many
respondents have reflected that social media has provided effective platforms to
communicate with one another and with the company.

Finally, the core objective of the entire research was to find out the changes that social media has
brought to consumers in each stage of their decision making process. According to the findings,social
media still cannot be considered as a powerful tool to trigger a purchase in Finland, whereas
individuals have reflected that mass media still remains a certain influence in gaining
awareness, for instance discounts available in stores, or a good deal. Social media has considered
as a powerful tool in getting relevant information, while mass media creates awareness of certain
discounts or promotions.

In theory, information exposure through mass media is considered as a passive process as

individuals are exposed and receiving information unconsciously. However, when consumers
seek out information initiatively, it is perceived as an active process. In the research findings,
consumers play an active role in the course of information acquisition because of the
accessibility and availability of information on social media platforms.
The accessibility and transparency of information that social media has offered to consumers
have been indicated throughout the entire research. Consumers are able to access to relevant
information not only in a great range but also in a faster speed, which mass media consumes
more time in searching information. In contrary, contents are not in control and monitored, thus the
chance of getting fasle and nonfactual information which the consumers have shown concern of. In
terms of a business context, marketers have to be aware of the bad mouth on social media, because
it can be spread virally and led to a damage to brand’s reputation.
The research finding has revealed the current situation concerning consumers’ post purchase
behavior in Finland. Many individuals have noticed and agreed that with social media, they are
able to voice out their opinions and to communicate with other consumers and with the company
more effectively. However, again, many of them have felt not encouraged to voice out their
feedbacks and to pass along their comments to peers, friends, or family members via social media.
In responding to the purchase validation tool (Evans 2008), the reason why social mediahas added
value to today’s marketing is by bridging up the post-purchase word of mouth with the
consideration stage of the consumer decision process, which has extended purchase funnel.

Specifically, due to the word of mouth and user-generated contents on social media, the “talks”
are able to generate an experiential data for prospects; however, the findings have shown that the
word of mouth would be insufficient for the influence because of unwillingness to share the
information via social media. In the perspective of marketers, this pitfall may serve as a
bottleneck in association with marketing via social media; thus, marketers should identify the
reason of this particular negative feelings among consumers and initiate consumers to participate in
the conversations.
Social media has altered the communication model which it used to be in mass media (see Smith
and Zook 2011), instead of having companies deliver messages to the public all times, social
media has fostered a web communication between customers and opinion leaders in which spins
around the brand; consequently, this particular new communication flow has built interactivity and
communities among all users, which the effects of it has penetrated in every stage of the decision
making process. This influence has been reflected from the collected opinions (see
Appendix 3).
To conclude, from the findings of this research, it can be observed that consumers in Finland are actively
utlilizing social media platforms as a tool in validating of the purchase decisions;however, consumers are
deemed to be inactive in sharing their word of mouth to others with the available social media platforms.

The consistency in the gathered data and time-honoured theories relating to consumer behavior and
contemporary frameworks regarding social mediamarketing, it has suggested that the essence of consumer
behavior still remains the same evenafter the advent of social media, in which individuals have to go
through the all the stages before a purchase, instead of straight to the purchase decision once a thought of
purchase being triggered.
 Limitation

 Despite the fact that theories were approved by findings from survey and the research is able to
provide a certain degree of new insights in relating to the current situation, limitations may still exist.

 In the foregoing chapter the above findings cannot represent all individuals across Finland as a
whole, due to the decision making process involves psychological factors which may result in
different behavioral actions. Also, regarding the summarization of question 31 in the survey, it may
result in the lack of objectivity because the researcher may only highlight the comments according to
the researcher’s intention.