CHAPTER - 01

INTRODUCTION

1.1 Introduction
 Lately, there has been a constantly increased spread and usage of social media from single
users and companies, worldwide. Social networking sites such as Facebook, Twitter or
Instagram, are being used as means of communication amongst users, data exchange,
information about recent topics in addition with market issues. Truly, social media have
transformed radically the information sharing facilitating thus the assimilation of information
on the Internet (Akrimi & Khemakhem, 2012). Additionally, customers view social media sites as
a service channel, where they can engage on real-time bases with the businesses (Leggat,
2010). Social networking sites are a powerful marketing tool being widely used as means of
connection amongst users and between companies as users. Thus, it can be said that social
media helps firms to build brand loyalty through networking, conversation, and community
building (McKee, 2010).

Social media marketing is different than traditional methods of marketing; therefore, it requires
special attention and strategy building to achieve brand image and loyalty (Erdoğmuş & Çiçek,
2010). Social media marketing is related to relationship marketing, where the firms need to
shift from "trying to sell" to "making connections" with the consumers (Gordhamer, 2009). The
consumer is given this way the opportunity to meet new products or be informed about
provided products-services of any brand. It is widely acknowledged that the consumers' brand
loyalty is affordable if the brand itself emphasizes on better customer's service in order to
maximize customer's experience Studies in domestic and international case studies
demonstrated a lack in researches related to the influence of social media advertising on
consumers' behavior and companies' product sales. It has been specified, in former research,
that consumers' brand attitude is influenced by social media (Abzari et al., 2014). In this
particular research the sample is narrowed amongst undergraduate students, thus, the
extension of the research is recommended for further analysis.

People were communicating with other people without a language in olden days. There is a
massive change in the method of communication in modern days. Social Media have become a
convenient way to communicate among all age clusters. The Internet and particularly social
media have modified the shoppers and marketers communicating medium. The Internet has
characteristics such as - the power to inexpensively store huge amounts of data at different
locations - the powerful search engines, organizing and disseminating of data - the power to
function a physical distribution medium as software - relatively low prices. With the help of net
and the presence of various social media sites it is now possible for business people to meet
worldwide customers at single click of the button. Thanks to the internet technology, which
helps the consumer to search the product on the web, view the review and ranking of existing
customers for the product before he purchased the product. Consumers use the technology
now a days too much as computer is used by many consumers so use of online marketing.
Consumer purchase decision is influenced by social media through group communication. The
web platform is a new method for developing the business. Social media modifies the
communication methods between sellers and buyers. E commerce influences the consumer in
their purchase decision. Communication through social media is a new platform to exchange
information about product and services. The analysis of consumer behavior is the core activity
for selling product and service since most consumers are using the internet and on-line social
media tools. Social media become an important media to introduce and market products and
also to do surveys. Nowadays Social media is an important marketing tool for promotional
activities. Hence it becomes necessary to perceive how Social media is affecting consumer
behavior. The present study aims at estimating the influence of the use of online
advertisements in consumers’ behavior. This paper is related to the impact of social media on
consumers’ behavior, therefore it has been made a quantitative research.

1.2 Social Media

1.2.1 Definition of social media.

It is termed as the collection of online communication of various inputs which may be

community-based or individual, interactions, intercommunications, contents sharing, websites
and many more among different users”. Whereas various social media specialists define the
term Social Media and their definitions on the various points: it's

 An on-line medium powered by the net for social communication.

 A two-way communication medium.
 A medium that permits creation and exchange of information.
 A medium that is supported by web technology services.
 Are platforms like Twitter, Facebook, Social Gaming, Blogs, Social Bookmarking, etc.

1.3. The rise of online social networking sites.

According to Wikipedia report, there are three hundred and more Social Networking Sites and
150 crore members all over the world (www.en.wikipedia.org). At the basic level social network
is a web community where people move through profiles that represent themselves to others.
The important reason for today’s people to browse these sites is because of the emergence of
Social Networking Sites major paradigms shift that has taken place among the millions of
people. The Social Networking Sites able to realize friends simply and form teams accruing to
the interest, business, etc. It is very straightforward to transfer photos, share views on culture,
cinema, sports, education and day- to-day events and happenings.

Social Networking Sites is reuniting old friends and helps to continue the broken bonds.
Through Social Networking Sites knowledge grows in cultural, social and economical aspects.
The ultimate reason for the ascension of Social Networking Sites is because of its user
friendliness. Anybody can have an account and relate with anyone. Most of the content shared
in Social Networking Sites is personal details, photos, interest etc.
Social Networking Sites are still terribly a lot of its early stage but contains many software
applications which are used worldwide, when it attains maturity stage, new applications will
come into existence. Social media concentrates on relationship with the users by way of sharing
of information and interest among users. There are numerous Social Networking Sites present
across the world, ranging from Facebook, MySpace, Orkut, and Cyworld to LinkedIn Among the
rapidly growing list of Social Networking Sites, Facebook is the global leader, catering to
concerning 300 million registered users around the world.

1.4 Bird’s eye view of the social media

Figure-1- Social Media Landscape by Brain Solis

(Source -www.briansolis.com)

1.5 History of social networking sites

In 1995, classmates.com helps to establish connection and communication with their
classmates where they have previously studies. Now the website has forty million users. This
website doesn’t permit the users to connect with different users, it permits to establish
communication only with the users who studies in the same college. Six degrees.com started in
1997, the earlier social networking website that permits its members to establish
communication with different users.

Social networking began with the on-line communities like Theglobe.com which was started in
the year 1994, Geocities started its working in the year 1994 and Tripod.com started in the year
1995. This community centered on user interaction by on chatting and helps social media users
to share personal data and concept via websites by providing free web space for websites.
Classmates.com has a new approach by having links to every user through mail. In 1990s, user
profiles were a feature of Social Networking Sites, permits users to have a list of friends and
search for different users with interest of similar nature.

In 1987, online social network was witnesses with the users in GreenNet within the Britain who
communicates with their colleagues at the Institute for Global Communications (IGC), earlier
termed as PeaceNet and EcoNet, in the US. People shared information in a method which will
be thought-about on-line social networking. When we take these features in into consideration,
then we can say that the Social Networking Sites already exists even in 1990’s. It is possible to
do several of the items, since the olden days that social networking website users do currently,
like creating personal websites and human action with others through interfaces such as
internet relay chat, online forums and communities. Several function of Social Networking Sites
what we have today was there in late 1990‟s.

Six degrees.com which was established in 1997, as a company permits its users to maintain
profiles, friends list which helps them to connect each other. The company was closed after 3
years of establishment because it failed to perform well. The reason for failure was less usage
of net and there were limited number of social networking sites. There was dating sites with
different user profiles, but the sharing of profiles was absent during that time.
In 1999, live journal was created which helps to exchange journal with their friends. A Korean
company named cyworld was started in the year 2001, with the option of soail networking. In
Sweden, lunarstrom was created followed by cyworld which has option of maintain friend‟s list.
A website with name ryze was created with th aim of establishing connection with business
people in san franscisco. Similar social networking sites like friendstr, likendin, Tribe was
established one by one. Tribe was familiar with business people, friendstr was failed to
withstand in the market during the infant stage but gained momentum in the later stage.
Many new social networking sites came into existence with many advances options for the
users to maintain friend list and to communicate with friends. In 2002, freindstr gained
importance and many people started using it followed by MySpace, LinkedIn and bebo. Because
of the increase in usage of social networking sites, in 2005 myspace was viewed by more people
than Google. In 2004, face book, the largest & most popular social networking website was
launched.

LinkedIn the famous website was concentrated on developing and establishing employment
and business networks. Flickr was established for a specific purpose of photo sharing. Myspace
became a competitive website to other social networking site including friendstr. Myspace
permits users to customize their profile which got heavily attracted by the user community and
the position of holding largest users in social networking sites. Increase of love passion and
fashion for Social Networking Sites, many teams additionally ventured this field. The other
Social Networking Sites that emerge during this period includes YouTube, Zoomr and BlogSpot.

For the people at the age of 50 and above, sagazone was started in the year 2007. With the
advancement of technology and growth in the usage of net users social networking sites began
to grow leaps and bounds among the internet users particularly among the kids. The main of
the social networking sites is to locate friends, permitting the users to communicate with friend
of friends, share photos, establish chats, develop business networks, create employment
opportunities through known sources, sharing of information and experience about product
and services. At the end of 2010, there were numerous sites for social networking and millions
of people were users of these sites.

1.6 Evolution of social media

The first and foremost purpose of social media is to communicate; People were interacting
even before communication tools were fancied. Discussions have always existed however the
speed to that the connections happened modified eventually that gave rise to social media
platforms. Traditionally these discussions used to unfold through Word of Mouth. Social Media
has become part life, thoughts, culture and business world wherever folks have started
exploitation digital technologies for networking, socializing, information gathering and
spreading. Social media, in one form or another form has been presence since the 1970’s. The
look and feel has modified greatly since the early days, the communication concept remains the
same. Today technology permits for a larger interaction and period of communication however
similar to its roots; social media allows people to broadcast to the lots.
The bulletin board system began as a virtual imitation of bulletin boards found in schools,
community halls and grocery stores. Primarily used by gamers, 7 hackers and other net users,
Bulletin Boards were among the first on-line communities. Users could communicate by email,
dial-up chat rooms and community message boards. Prodigy brought the first industrial bulletin
board system, yanking social media up from the underground and making it additional thought.
It was launched in 1990 it gained mass appeal due to its color interface. The internet existed
since the late Sixties, as a network, but the Worldwide internet became publically out there on
6th August 1991.

Friendster was launched in 2002. It permits the users to set up profiles, contact other members
and share data with them. In 2003, Myspace was launched and it held the title of most
widespread social networking website for a few years. It is still a useful website for artists and
musicians to push their work. In the year 2004, the most famous website Face book was
established by, Mark Zuckerberg. The platform has been integral in bringing social media into
the thought and nowadays sees over millions of active users. Twitter was launched in 2006 and
is a popular micro-blogging website. Currently social networks exist for each passion, hobby,
interest, industry and cluster. Corporations in all types of industries are developing variety of
niche social networking sites. Social media is not just restricted alone, it includes sending
photos, multimedia message contents etc. With the growth of social media, the social media
websites started concentrating on developing technology for sharing of information in various
forms like photos, audio and video. Photobucket was established in 2003 for sharing of photos
through website. In 2005, YouTube was launched which was the first and foremost video
sharing and hosting site. The advent of social news and bookmarking sites like Delicious, Digg,
and Reddit, within the mid-2000′s caused an entire new way of exchanging of information in
the world. Social media has evolved itself day by day from the period of bulletin boards and
presently there were separate social networking sites for searching, financial solutions, movie
reviews, book reviews, sharing and shaping of personal goals, sharing business ideas etc.

1.7 Functions of social networking sites

Social Networking Sites help people to maintain their existing relationships with friends and
family and interact with them with ease and rapidity. Though the function of Social Networking
Sites was believed to fortify real-world relationships, users often loosen the means of friends
and extend their networks to acquaintances and strangers.

1. Categorizing Social Networks

Social Networking Sites can be classified in an exceedingly variety of the way, with specific
function. Digizen, a company categorizes the social network, based on different functions.

2. Profile-based social networks

This is based on user’s Profile pages. www.facebook.com, www.bebo.com and

www.myspace.com, are examples for profile based social networks. The webpage developed by
users include a variety of ways in which they typically contribute to every other’s areas – usually
text, embedded content, links to other contents. Some sites permit the users to post video links
from various sites in their profile pages.

3. Content-based social networks

User profile plays an important role in establishing connection with others. But they have a very
little role when compared to posting of contents. The contents are mostly in the form of photos
and these photos are commented by other users in social network.

4. White-label social networks

They offer their users a chance to make and be a part of communities which implies that users
can develop their own personalised small Site concerning to the social network with an
importance to their area of subject matter of importance. Wetpaint is a website which forms a
group, where people become members of this site and they are permitted to create a content
on their subject interest and communicate with others whose subject of interest is one and the
same.

Mobile social networks

When people are connected through social network using mobile phones, that is termed as
mobile social network. Currently Face Book and bebo are providing the service and many other
sites are also working on this environment.

Multi-User Virtual Environments 9

Multi user Gaming sites like Runescape and Second Life permit users to create virtual users like
various real-world avatars in the game to make them interesting.

Micro-blogging updates
This type of network provides user to post short messages about the current moods and
thoughts. It helps the people to understand what the user of the group is thinking and talking
about. Twitter is a good example.

5. Social Search

these type of social networks helps the people to search various social networking sites and
profile pages of people and permits the user to find a person by way of name, location or
subject interest. Social networking sites such as wink, spokeo are good examples.

Local Forums
These types of category are not actually coming under the preview of social networking, but it
plays the role of social networking by way of loacalised discussion through online and offline.

1.8 Types of users on social networks

To be a member of social media site, the user needs to register with their personal information.
The users of Social Networking Sites can be classified as-

1. Friends – Friends are termed as users of the social networking sites whom the users are
aware of the person and believe them as friends, and can be shared anything like
photos, blogs, information and many more.

2. Friendsters - Friendsters are users who might be termed as friends by others despite the
fact that they're not far-famed and trust worthy. It shows that Friendsters are showing
as friend but they are not of that category where anything can be shared.

3. Fakesters - Fakesters won’t reveal their original identity to others in the network. They
are completely different from friends and wants to hide themselves, no body can idea
who they are and what they need.

4. Fraudsters - Fraudsters are users of social media and they will pretend them to be
persons and will take part in deceitful monetary or issues inflicting damage to other
users in the social media. There are many members in that case are misusing the
information which is uploaded on websites like information on Face book and many
more social networking sites, that‟s why they are coming under Fraudsters.
1.9 Social media marketing

It is a method by using social media site to attain the attention of people. These programs
concentrate on developing a content which will attract the attention of the readers in social
media and make them to share the contents in their social networking site.
Any statement that is shared in the social networks, which included short messages,
information about a product or service, brand or a company is termed as electronic word of
mouth. When the information about a product / service / brand / company is shared in a social
media by a user, it is reshared by many users in other social networks and when the
information is shared by a trustworthy source, it becomes appositive promotion for the product
than the promotion done through paid sources. This shows the power of social media
marketing.

What the major search engines seek for in terms of social media signals are the source's
authoritativeness and trust. Authoritativeness is different from Authorship. Authorship is a
function released by Google in 2011, which permits authors and publishers to add varied parts,
including photos, ratings and more details to search engine results pages. Trust is fundamental
to social signals being read by the search engines. Those people, whose social media profiles
have a trust score, are called as influencers.

As per consumer socialization theory, communication with customers plays an important role
and its influence the psychological feature of customer. It also has an impact of attitude of the
customer. Social media networking sites provides an environment that enables the consumers
to communicate in the web which will have an important impact on consumer socialization
concept.

1.9.1 Benefits of social media marketing

In the above diagram which is showing information about Social Media Marketing Report and it
is clearly showing various benefits which are as follows:

1. Increased exposure:

Now a days the importance of Social Media Marketing has increased. Consumers and Marketers
are using the Social Networking too much. The exposure increased now a days which is showing
92%.

2. Increased Traffic:
With the introduction of web-based marketing the users are increasing day by day. The
research says that consumers and even marketers using social networking sites too much and
due to that site, the traffic has increased day by day which is showing the research that traffic
increased up to 80%.

3. Develops Loyal Fans:

Brand Loyalty is the another is most important advantage of social networking sites. Taking an
example if a consumer is satisfied with any product, he or she will never go to any other
company to buy the product. This creates brand loyalty.

4. Provided Marketplace insight:

Social networking sites provides information about product and is available clearly. That means
its Features, Functions, Price etc. Consumers will get full information about product only on
websites and customers don‟t have to go to anywhere. The result shows that 72% customers
agreed that social networking sites are providing marketing insights.

5. Generated Leads:

There are various different ways to lead generation. Most of the social networking sites
generate leads for product and services. For example- A blog give as hub for customers
engagement. No doubt Face Book is also important source, so in short it is generated leads.

6. Improved Search Rankings:

Most of the customers are now spending hours even more than watching television too. And
what curiosity they get as social networking sites are the search engines. With the help of social
networking the ranks given to products on the basis of feedback given by the customer online.

7. Growing Business Partnerships:

As a Trading form of selling and purchasing is now replacing with Social Media in the same idea
of business is also changing. After taking many years now Binch Box wants beauty obsessed
Instagram followers to join them. Now a days growing partnership are also important
advantage of social networking sites too.

8. Reduced Marketing Expenditure:

Trading method of selling the product is too costly. As business man needs salesman, office and
many more requirement. But now a days social networking sites are user friendly and anybody
can use the social media at any time and even businessman can do the advertisement on social
media site very cheaply.

9. Improved Sales:

In the present scenario where 4600 photos are shared, 600 websites are created every day.
1,00,000 tweets are sent. Now a days different social networking sites are created so differently
as customers can purchase the goods online at any time. No doubt now a day revenue has
increase online as compare to earlier days.

1.10 Effects of social media marketing on consumer behavior.

Daily more than one lakh different types of tweets are sent, nearly Seven lakhs contents are
posted on facebook, millions of information are searched in google, thousands of photos are
sent through instagram, six hundred websites are hosted. There were lot of business
opportunities due to development and advancement of social media. In the business
environment, consumers become the focal point because of the powerful presence of social
media. Several studies were conducted to find out the influence of social media and results of
these studies helps the firms to maintain a good position in the market with the help of social
media.

1.11 Social media platforms

1 Social networking websites

Social media helps the people to establish communication with each other and build a good
relationship with others. It enables the firms to directly communicate with their customers. This
strategy makes the consumers to feel more better than the traditional methods of selling and
advertising. Social media permits the users to share information, post comments on products
which others can see and repost them to others. When a message is shared by many users of
social media it reaches more individuals. When a information about product / service are
shared more through social media websites it brings huge traffic to the product / service. If the
information retweeted is positive and from the original source then there are more chances
that the users of social media becomes a prospective customer for that product.
1. Mobile phones

Mobiles phones with social networking facility are a powerful platform for selling products.
With the help of mobile phones people came to know about the recent changes, happenings
and discussions in the social media. Mobiles phones enable continuous connection with social
networking sites and firms are using this chance to update their product and services to their
customers through social sites. Firms are using QR codes to make easily available to their
customers about their websites and other services. Smart Phones are enabled with QR code
readability with helps the customer to know the information in an easier and quicker way.

2. Engagement

When the customers of the product become the participant in social media for promotion of
the product, then it is termed as engagement. With the help of social media, user can post or
comment on a product or service. With the concept of engagement, the client of the company
promotes the product by way of posting a comment, whereas the viewers will see the
comment. By engaging the existing customers to market the product through social media,
selling becomes more successful.

2. Twitter

Twitter permits the users to post one hundred forty characters to advertise and promote about
their product or service. This message can be a text, website link, photo etc…

4. Facebook

It helps to post information about a product and enables to post comment on the post. It
facilitates the user to like the page r post and also share the page or post to other users in the
facebook. The information posted includes text, audio, video and website links. Facebook is
designed in such a way it will connect with twitter page.

5.Google+

Google + contains some of the features of facebook and is associated with google adwords and
maps. Google + includes location-based search, navigation services, location - based selling etc.
Google+ helps in marketing activities.

6. LinkedIn
It is a social networking site which enables the firms to develop for professional and business
profiles to network with people. Twitter can be merged with linkedin page. It helps the users by
providing opportunity by way of generating leads. The pages are similar to facebook pages
which can be used to promote their product and services.

7. YouTube

Youtube permits the users to upload videos. Youtube is used to upload advertisements for
target their customers by firms. The taste and style of the customers can be reflected in the
commercial ad‟s developed by the companies and it can be used as medium to market the
products by way of advertisements. Youtube videos cabn be downloaded anytime on request.
Sponsoring of video is possible on youtube.

8. Delicious, Digg and Reddit

These are well liked social sites used for marketing activities. These sites are the targets of
social media marketers to advertise their websites and to share the links to their customers.

9. Blogs

Blogs are webpages developed by companies that contains information about products and
allows consumers, employees to post comments, view and share information to others.
There are some positive impacts as well as some negative impacts are there of social websites
which are doing the job of marketing. Some of them are as follows:

Positive Impacts:
1. Social media which is doing the marketing helping to businessmen to understand their
customers by understanding their likes and dislikes.

2. It helps various firms to understand how different types of activities can be done.

3. Social websites are helping to make not only to old customers but also to many new
customers to attract them.

4. it increases awareness for consumers how to use branded goods and services.

Negative Impacts:
1. Social websites are not fully protected. Anybody can misuse the websites information like
Facebook anybody can take the image of any person can create problem for consumers.

2. Social websites are sending many advertisement mails, messages to customers due to those
customers are thinking as unsought goods.

3. Wrong type of brand advertisement can create a big problem for the company.

4. Many companies are not getting feedback from the customers though it is a free of cost. But
still consumers are reluctant to share ideas and thoughts.

Figure - 3 - Key Social Platforms

Source: By Researcher

1.12 Social media marketing techniques

The main purpose of social media marketing is communicating about the product to the
consumer and makes them accessible to people who doesn’t know about the product. Social
media is used by companies to promote the product to the prospective customers. Social media
marketing helps the consumers at a various stage of buying process. A research indicates that
of thee ten factors for effective marketing, Social media is one amongst them, which indicates if
any brand is in operative on social media, then the result will be less chances of the brand to be
present on google searches. There is large no of users in facebook, Twitter and Google and
there is huge exchange of information which made the business firms t use the social media to
interact with prospective customers.

Instagram has hundred thirty million users monthly and twitter has two hundred ten million
monthly users and the average communication rate ranges from 1.46 percent on Instagram and
6.03% in the case of twitter. The cost involved in social media marketing is very less when
compared to ancient modes of advertisements using TV/Radio/Print channels. Infact there is no
price involved when using social networking site, it also covers wide range of people.
Many firms are now changing their approach for interaction with customers they are using
online platforms for better client interaction and visibility. Social media are used as a platform
by customers to post reviews, recommendations, ratings, raise queries to the firms.
Companies are employing people to handle social media communication with the customers
and they are working as online community managers. The job of these managers are to handle
social media communications in an effective manner and win the trust of customer. Firms are
taking steps to manage client issue, identify various modes of social media marketing, engage
the customers to influence the new and prospective customers to market their product/service.

Targeting, COBRAs, and Electronic Word of Mouth

To successfully advertise online, social media marketing is used which includes consumer
COBRA & e-wom. The comments post by users of facebook that is likes and dislikes are shared
with advertisers. When there 17 are more likes for a product/service, then business people will
more advertise for the product. COBRA will help to market their product with the consumer.
Consumer to consumer interaction in the social media will help the firms in cost free
advertisement. Product review, Ranking, recommendation are examples of e-wom. On the
other hand, if there is a negative review by customers which will have a negative impact on the
marketing of the product.

Companies like Dell and Sony have got experience that use of social networking sites have
increased their sales. In the second month of the calendar year Sony had made declare through
Twitter. They have earned a surplus of Dollars one point six million in sales. After that in the
sixth month of calendar year the US based company Dell announced through Twitter accounted
for dollars three million risen in sales. It is very clear today that internet is a treasure of
knowledge and information. Social networking sites are playing a very important and crucial
role in the life of many people. How social media is working it is very clear. First of all, we have
to do formation of Attitude that how and what social media have knowledge and it could be
monitored and how it can use.

Not only one type of social networking site is important but some like Blogs are important for
many companies as they can increase the reputation of business and many organizations very
easily. Social media which are doing the job of marketing is now also known as social media
marketing too. Social media marketing a new concept of brand building and image which is
generated by many marketers. Attitude the behavior of any person is a part of overall
personality. It is part of all of us. No doubt there are millions of people are here in this world
and all of them are different from each other in one way or other. It is very clear now that how
people are using mobiles phones for using of social media. with the help of web pages through
using of internet the consumers are changing their attitude towards pattern of consumption.
Nowadays, websites are using in different areas like communication, business and many more
fields. Even many literatures showed that social marketing has a great impact on many and
varied consumers. Nobody can not deny in the light of the present situation where
communication plays a very important role and in this process internet in particular which
changes the decision power of many consumers. With the invent of third generation not all
smart phones but tablets, mini laptops and various notebooks are also used to attract the many
and different types of consumers.

The study clearly showed that are consumer is always affected by another consumer who might
be his friend. The reason behind that people like to share ideas, thoughts, feelings either
directly or indirect. These behaviors describe how the behavior of one person can change the
other individual. With the help of social media people means consumers can build social
relationship, ask and reply any kind of question and answer. Friends can distribute information
is the form of many photos, videos, audios and even tweets and retweets too. The question
arises why people and many friends, consumers are using social media the reasons are like to
stay touch with friends, find partners, find those people who are having same kind of interest,
reconnect with old friends, even stay touch with family and there are many more reasons are
there where people can take the help of these kind of social networking sites. Again, question
arises why people share any kind of information with others and the research concluded that
there are many reasons like efficiency, personal gain community interest, social interest,
reputation, etc.

1.13 Advantages of social media

1.Increased Brand Recognition

Social Media is a new platform for promoting the brand. Social Media helps the companies to
attain new customers and also have quick access to customers. When a particular brand is
familiar and available in multiple social media sites, It increases the brand recognition to the
customers and also attract new customers. When the brand is tweeted frequently in the social
media, then the company‟s brand image will get increased, there by increasing the growth of
the company business.

2. Improved brand loyalty

A research work published in US, indicated that when there is higher level of interaction about
a brand in social media, then there exists higher level of trust about the brand among
customers. It also suggests that companies can take the benefit by using social media tool to
connect with its customers.
The study also suggests there should be some strategic plan for use of social media to influence
the customers. Another study indicates that fifty three out of hundred in American population
are following their brands in social media and also, they found to be loyal to their brands.

3. Chances to Convert

There is chance that each and every comment, post, sharing, likes in social media will become a
sale and bring customer. Every comment, post, website links, video, tweets will make the
viewers to visit the page and view the product and thereby there is a chance for conversion into
sale. Though all the comments may not get a chance for conversion into sale but every good
comment about the product will get a chance for conversion into sale.

4. Conversion ratio

The conversion rate of conversion of discussion in a social media into sales is high. It is the
important element as seen by business people nowadays. The brands and the reviews about
the product started to speak like individual salesman in the social media channels. Due to this
effect business people want to improve and increase their business with various people in
social media than with firms.

6.Brand Authority
Continuous communication with the customers will bring a faith about the product among the
customers. People are searching and viewing the comments in the social media about products
and services, whenever they are planning to buy a product or avail a service. Every new post
about a product in social media by a user will attract many users in the social media and they
follow the page for information update. When there is more talk about a product in social
media, there it becomes more attractive brand.

6. Reduction in selling price

Due to the presence of social media, the advertising cost is getting reduced by way of
advertising through twitter, face book etc… Hubspot research concludes that six hours of
spending in the net in a week by a seller for social media will bring more in number of viewers
to the product in social media. In order to get more customers, sellers can spend one hour a
day in the social media which will definitely bring more customers and thereby reducing the
cost on advertisement which in turn seller can reduce the price of the goods.

1.13 Limitations of social media:

As we know that there are always two coins of the same coin. In the same way no doubt there
are many advantages of social media in the same way there are some limitations too.
Some of them are as follows:

1.Not enthusiastic:

Think of the situation where consumers do not seem to be completely depend on online
purchasing. Delayed shipping, improper packing, complicated cancellation process these are
the important points which consider by the consumer and he is believing not enthusiastic.

2. Issues related with security:

There are many problems are related with security. Privacy concerns have hampered the
thinking of consumers towards purchasing of online goods. Consumers is worried about
transection frauds.

3. Still traditional better:

Still there are certain consumers who are thinking that as compare to online purchasing, better
option is traditional as no problem of changing, fraud, deduction of money without successful
transection.
4. Financial risk:

There is big risk of financial risk involved in online purchasing which is thinking by consumers.
The level of uncertainty surrounding is also affecting online buying by the consumers.

5.Lack of physical approach:

This is the important limitation of social media. As consumers are purchasing the goods only
online and consumers have no idea or not in a position to see the goods physically and in turn
consumers will not ready to buy the goods online.
We have seen the various advantages and limitations of the social media but in reality, these
are not full-fledged limitations we can say them as partial negative limitations.

1.15 Consumer behavior

It is the study about individual, group of individual and the method people use to purchase and
use the product or service to satisfy their wants. The study combines various subjects which
include economics, sociology, psychology and marketing. Consumer behavior will make an
attempt to find out the various factors which are behind the consumer decision making process
for purchase of product. It also studies the demographic and psychological characteristics of
consumers and how consumers are influenced by various factors such as friends, relatives,
members in the family, co-workers, people living in the society.

Consumer behavior, also known as client behavior, provides information concerning client and
his/her consumption patterns. An organization will still survive if it will offer client desires and
demands with a comprehensive understanding of them. This shows the importance of studying
client behavior. This requires understanding client behavior that isn't thus easy.
A group or individual in a group can make an influence on the behavior of consumer. The group
can be small or large in number. Some of the groups which will make on influence over an
individual behavior are members belong to family, workers in the organization, individuals living
close to the consumer. Other group which may affect the individual consumer behavior are
workers union, associations, trusts, community group etc. These groups do not have regular
communication with the individual customer.

1.16 Various factors that affects consumer behavior

The factors that affect consumer behavior are as follows:

1.16.1 Various Marketing Factors:

There are various marketing factors which affecting consumer behavior that is product, price,
promotion and place of distribution.

1. Product:

Product plays a very important role. There are various features of product like in which affect
market behavior.
 Physical Appearance.
 Packing and Packaging.

2. Pricing: Price is also important factor which affect consumer behavior that is

 Target customers
 Price sensitivity

3. Promotion:

There are various elements components of promotions that are advertising, publicity Which
affect consumer behavior. There are various elements components of promotions that are
advertising, Publicity etc, which affect consumer behavior.

4. Place:

The channel of distribution is mainly of two types that is direct channel and indirect channel
which affect marketing behavior, marketers make an attempt to select proper channel of
distribution.

1.16.2 Personal Factors:

There are various factors which affecting consumer behavior that is.

1. Age:
Age is the most important factor which affect consumer behavior for example when consumer
is younger that teenager may prefer trendy cloths where has an office executive may like to
were formal clothing.

2. Gender:
Gender is also important factor which affecting consumer behavior like girls may prefer certain
favorable color like pink, purple peach where as boys may like blue, black, brown and so on.
3. Education:
The consumer who are educated may like to spends on book, personal care products and so on.

4. Income level:
Income is also an important factor which affect consumer behavior. Highly income person
wants to spend more and vice- versa.

1.16.2 Psychological Factors:

There are various Psychological Factors also which affects consumer

1. Learning:
Learning means change in individual behavior when a consumer by product online or way like
perform and if he satisfied then he will always follow different social media Marketing.

2. Attitude:
The response given by an individual during a given situation. There exists a positive attitude to a
consumer.

3. Beliefs:
It is a thought about a product/ thing by a person. If there is strong belief about a
product/person/ thing/method then it will have an impact on the behavior of the customer in
buying the product.

1.16.3 Social Factors:

Social factors are also affecting Consumer behavior like:

1. Reference groups:

It may be small or big team which contains coworkers, friends and others.

1. Family:
Members of the family will influence the behavior of the individual consumer and their
contribution will be more when compared to others.

1.16.5 Cultural Factors:

1. Culture.
Culture is also an important factor which affecting consumer behavior. For Example- the culture
of South Indian is different from North Indian. Where as the culture of Indian is different from
other countries too like.
2. Sub-culture
Sub-culture is yet another factor which affecting consumer behavior.

1.17 Purchase decision and social media

Social media permits the users to post comments, give reviews about product and services, put
status for the product or service which includes likes and dislikes, tweet about the products.
When a customer is satisfied with the product, he might recommend the product to different
users of social media by passing the message with the help of various available social media
tools. In earlier days, consumer digest was used to put the reviews about the products, but
nowadays social media is slowly taking the position for placing the product reviews, ranking and
recommendations. Ten years before, people rely on the opinion of the retails shop owners and
specialists for purchase of new product, but today consumers rely on the opinion and advice of
the people in social media.

Companies are reducing their budget for paid advertisements and concentrating on social
media advertisements. Ernst & Young surveyed forty-eight firms that have strong social
presences and implied that Eighty three percent of the firms have presence in social media and
out of this forty two percent of the firms using social media to post advertisement, conduct
web contest about their product. They have also used social media tools to build their brand.
Buying decision can be defined as the method by which customers pass through various stages
of buying decision process.

`1.18 Stages in consumer buying - decision process

The various stages involved in consumer buying decision process are

 The problem recognition stage: the identification of product a client desire.

 The search for info: which suggests search for data bases or external data sources for
information on the merchandise.
 The possibility of different options: which means whether or not there's higher or
cheaper product offered.
 The choice to purchase the merchandise and
 The actual purchase of the product.

The below given is the diagram which is showing the various stages.
figure -4 -Stages in Consumer Buying - Decision Process
 Sources: By Researcher

This shows the complete process that a client can possibly, whether recognizably or not, go
through after they move to buy a product. When creating a purchase decision, social media
influence take part a necessary role. When a customer decided to purchase, then he prepares a
list of options for deciding the proper product. Even though e commerce sites are offering
various tools for browsing, searching for the product, proving product specifications, it is
continuous to be a difficult task for the customer. Nearly eighty percent of users of the internet
are not using the e-commerce sites because they could not find the right product which they
need. Individuals are looking for reviews, recommendations and ranking from the existing
customers and from trusted people which includes workers in the organisations, members from
family, relatives and friends. Most of the times these trusted people may be out of reach for
discussion.

Social media sites provide quick access to the friends, relatives and trusted people through web
and also permits the customer to view and access to their post and comments in an easier way.
This technique helps the consumer to know about the product information shared and posted
by others in social media and also this can be viewed in offline also.
In any way the most important part of any organization is Consumer. Without consumer there
is no value any firm and business organization. It is the duty of business organization whether
online or offline to build the relationship with consumers. There are various points which clearly
explain why there is a need to maintain consumer relationship.
1. Better consumer perception:
Consumer is the king of market. Every consumer is expecting the good quality of goods and
services at cheap and reasonable rates at most important duty of suppliers to sell the goods at
reasonable price and does not change exorbitant price. This will increase the sale of the goods
and services of the business firm.

3. Customer satisfaction:
Consumer satisfaction means how consumers are satisfied with the current product and
services which is going to be provided by the supplier. In this modern world where completion
is too much customer satisfaction playing a 26 Very important role. It will be very clear that if
customer is going to satisfied the sale will increase.

3. Customer loyalty:
It means repeat purchase. When consumer will get good quality of goods he never will go to
any other shop or any other business to purchase the goods from other way.

4. Customer retention:
Customer retention means not a loosing of customer or consumer. Consumer is the focal
situation of any business. Usually, a loyal customer will never leave your shop and go to any
other shop and purchase the goods.

5. Increase in revenue:
With the increase in the number of consumers the revenue generation to increase at a faster
rate. For Example, we can see that Flipkart has cross the sale of rupees Fourteen hundred
crores in a single day which is an extra adding thing.

6. Low cost:
If consumer will purchase that means there is brand loyalty he will never shift to any other
business. And for the expenditure of advertisement which is the most important expenditure
will be low and automatically the cost will be low.

1.19. Uses and significance of social media

There are various ways to make use social networking sites to attract consumers by the
marketers. In modern times social media is like a one kind of tool which is not only helping
marketers but also consumers too. Now a days it is a very powerful tool to maintain relations
with customers but also with society too. Social networking sites are helping to businessman to
sell the goods as well as share thoughts and interact with each other too.
One of the important use or significance of social media marketing is giving advantage to
consumers to select and order the goods from variety of goods available online. It is a one kind
of communication between marketer and consumers. These websites are helping to consumers
to buy the product, share thoughts and many more. In traditional method of marketing
consumers are don’t have that much space to select the product but in social media consumers
have variety of options to select that. With the help of social media marketing the consumer
can update his knowledge by visiting various social media networking sites for example
everyday approximately 510 million are visiting Google, 131 million are using Instagram and
many people are using facebook, skype etc.

There are different organizations and companies are there who are using internet for Wiki.
They are doing this to college huge amount of information for many reasons like Wiki is
supplying a lot of information to companies regarding different types of services, product and
how to increase the product development and much more information. Social networking sites
are going most popularity nowadays among many consumers. We know that what is today
become outdated tomorrow, so it is impotent for companies to bring the social media many
closer to thing about like and dislike of consumers. It is to be noted that social networking sites
are creating an extra adding platform for themselves and for consumers too.

There is various research did in the light of this area that people might be enjoying social media
to stay in touch with their friends, make various and different types of plans, make new friends
also with the use of new technology and increasing the growth of digital media, many
advertisement companies are getting information of many social networking site. No doubt
whenever advertisement done through these online websites it becomes very cheap and not
costly for them. Even nowadays the behavior of consumers that means buying pattern of
consumer are changing. It can be seen that nowadays before purchasing any goods and product
by consumers must get the information through collecting information from those friends who
are either using social websites or through internet.

1.20 Social media and consumer behavior

In the last 5 years, social media grow with leaps and bounds and become an important platform
for communication among people. The social media tools also advanced due to technological
improvement. Social sites are engaging in continuous research to improve communication
methods in social media sites. Many websites are providing various tools to advertise and sell
products to the customers, but social media provide not only selling tools but also provides
tools to network the people. A nowadays social media network becomes the important
marketing tool for companies. Social media is a place for interaction and communication where
millions of individuals meet daily and it became an important market place for firms to
advertise and sell their product and services. Social media is the best place for posting
marketing information, advertising the product, illustrating the product etc.,

Many professionals and small retailers and giant retailer and big business houses ignore the
importance of social marketing. They not understand how social marketing are increases its
path in many different types of business and services too. Taking an example Linkdin which was
started in the year Two thousand and three a present there are many users of this websites
over one hundred and twenty million are there. Linkdin gives you an updated professional
identity online. Another way of changing way of thinking is Facebook. Nowadays everyone
hears about Facebook. Not only business class people and consumers but also many college
students are using the Facebook marketing. Facebook is an extra ordinary way of doing the
marketing and can attract as many as customers. Facebook has opened the door of many types
of professionals, students and even housewives.

The basic role for doing marketing on Facebook is increase your network. Every person can
create Facebook for page and can do the marketing over that. Each and every marketer must
encourage to do community interaction over that. There are many common mistakes are doing
by many people on Facebook like broadcasting, don’t put more advertisement as if you don’t
have many social connections. Doing advertisement on Facebook does not means just post it.
You have to give the time to your social contacts. Another important mistake people are doing
that is validating rates of Facebook and immediately your page will be blocked. Do that kind of
work that not you but Facebook do work for you. Twitter can be used for business purpose.
Twitter is also a very important social networking sites like other websites. Say example
YouTube, Whatsapp and many more. The maximum limit of character of Twitter is around one
hundred and forty characteristics at a time and not more than that. Twitter allows you to share
your thoughts with many people around you or those who are far away from you. In SMS the
word SMS means Short Message Service is the same way in Twitter the message what you sent
is known as tweet. Twitter can be used to develop a business as well as relationship with many
people as you need it.

Another type of business online services can be used is Google plus. In the year Two thousand
and four the Google company expanded its activities to Google plus. This is a new avenue
created by the company to may online users. If anyone can use Google plus in proper way with
proper guideline it will help to change the way of doing the business. No doubt Google is
founder of Google plus so anyone can use the benefit which is providing by this type of
organizations to many users. To do the business on this website is damn easy as compare to
traditional way like the advertisement, banners for wall and many more. Many social websites
are doing advertisement and earning lot of money over that.
Social media is using the help of internet and is highly scalable as well as accessible to anyone
mean individuals in particular and public in general. It clearly shows that social websites have
many users, Television, radio are very much outdated in modern world. Many advertisements
clearly showing that how the various apps are helping to read the news instead of sitting in
house and watch the television. To watch the television and listen to radio is an old and
traditional way, now people are reading all such kind of stuff on YouTube, times.com and many
more social websites. Social media is not a monologue like radio or just a television it is
dialogue between one to one and one to many. Many different sellers can contact and instantly
get back of consumer on various social web site. Traditional method of advertising is not
helping to build relationship with many consumers but social media is helping to build not only
relationship but brand image also.

Some companies are using social media not only with other parties but internally too. As it is
very cost effective of doing communication among various employees, peers so many
companies are preferring nowadays even start up business and small size of business too doing
this kind of communication. No doubt there are many ways to reach to various types of
consumers through online companies are helping too many consumers to do brand awareness
about the product and various types of services too. The research made in this regard and it
shows that around seventy seven percent of marketers are using social networking sites to
attract many and useful customers. Total users of Facebook are one point fifteen billion users
are there and out of that around fifty five percent are females where as Forty six percent are
males. Those who are age of sixty-five to hundred the users are twenty-three approximately.
While in case of YouTube the users are nearly eight hundred million are there in the whole
world and two hundred and thirty-eight are LinkdIn and in case of Twitter it reaches to five
hundred million. There are other websites too which are using by many marketers and
consumers too that is instagram, pinterest, foursquare and many more.

In modern times the role of technology in general and internet in particular is increasing day by
day. Internet is source where people, community, society are connecting in different ways and
allow them to share their thoughts, feelings, ideas and emotions. And the most famous way to
connect with each other is social media websites. There provide users friendly platform which is
going to change the mind and behavior of many consumers. According to Krishanan in the year
two thousand and one now the main focus of marketing is to maintain and create the image
building in the mind of consumers. With this not only brand image but brand equity is
increasing everyday. We know that the behavior of consumer is ever changing and at any time
he can choose his mind to purchase the goods and services. In modern world the electronic
marketing is developing. This kind of marketing are focus on consumer too much. Due to
increase in the value of digital age, the responsibility of marketers is increasing to much.
Hoffman in the year Two thousand writes that the internet has played s very dynamic role and
due of vast amounts of numbers of consumers the role of business id increasing to provide
good quality of not only goods but the services too.

Golden in the year Two thousand Eleven listed the following features of social media marketing
which are as follows:

TONE: Honesty is the most important feature of social media marketing. Even every business in
social websites must be not only honest but more of above is authentic. Always market should
remember that whatever the message is going to the audience and consumers must be reliable.
CONVERSATION: it is not a one-way communication like traditional way of communication of
doing the advertisement. But it is two way of communication or we can say it is a multiple way
of communication.

Now a day’s people are spending more time on the web and the penetration of media into
society has an impact on the business. Due to this impact, the consumption trends have
modified. The traditional methods of marketing such as use of magazines, catalogs, brochures
are entirely replaced by email marketing, social media marketing etc., Due to the effective
presence of social media, people are spending more time in the web.

Social media becomes a market place to offer products and sell the products to the customers.
Because of the social media, the consumer decision making methods have changed and the
behavior of the consumer also modified, the impact of social media in the decision process and
behavior of consumer is unpredictable which is big issue to the business firms to decide on the
market strategies. Consumers are influenced by Social media where different users were
present. The impact of social media on behavior of consumer are split into 3 groups.

Behavior which affects consumption pattern.

Behavior affected by others regarding consumption.
Behavior affected by social media.

All those factors which affects the client behavior like demographic, social, cultural,
psychological and situational factors are also applicable for social media which affect the
consumer. Social media users can be classified in different ways like gender, age, income,
location, education, marital status. Companies classify the users of social media using family
cluster, social class, cultural variables to market the products to different segments of
customer.
Changes in client behavior have altered the marketing strategies during the last ten years.
Consumers normally get the product information through television, Newspapers, magazines
and co-workers. But with the development of internet and its vast usage, Social media occupies
lives of the consumers. The concept of branding gain importance and wide spread with the help
of social media. Today most of the companies are using Social media to improve their band
visibility. Social media has millions of users and there exists of thousands of social media sites
which are contributing to everyday business. Social media affects the consumer choices
because of the instant posting of comments, independent of time and location, availability and
accessible to all users of the web. Thus, we can understand that the social media has an impact
on consumer choices and buying decision process.

1.21 Primary Objectives of the study:

Following are main and primary objectives of the present study:

1. To study the concept of social media.

2. To evaluate the various channels preferred by consumers for buying decision over traditional
channels.

3. To analyse the impact of social media on consumer buying behavior.

4. To find out which is the best social media preferred by customers.

5. To find out impact of social media on consumers with reference to Nepalese economy.

1.22 Scope of the study:

1. The Scope of this research is ultimately to understand many features,

advantages of social media marketing.

2. Understand the behavior of the consumer, factors affecting consumer

behavior.

3. Traditional method of marketing like Radio, Television are considered

Upstarts with questionable staying power.

4. Many progressive business owners are dabbling in social media

Marketing.

5. The long-term benefit of an effective broad scope social media marketing

campaign cannot be measured in days or weeks.

6. Bloggs, Twitter, FaceBook fans, Digglinks, Skype are various tools

Adopted by customers as well as marketers too.

7. Scope is concerned with the place of the research also, for that researcher
Has taken area in respect of Nepal, a part from this, researcher has
Taken kathmadu, Kanchanpur, Dang, Darchula etc.
1.24 Hypothesis:
Hypothesis is a predictive statement, capable of being tasted by scientific method that relates
to an independent variable to some dependent variable. Hypothesis refers to any assumption
or predication made by a researcher while doing research work.

In simple words Hypothesis means “Hypothesis is a tentative proportion formulated for

empirical testing it is a deductive statement combining concepts. It is a tentative answer to a
research question. It is tentative because its veracity can be evaluated only after it has been
checked”.

The importance of hypothesis lies in their ability to bring direction, specificity and focus to
research study. It clearly tells to researcher what specific information to collect and thereby
provide greater focus. Always hypothesis should be empirically testable. It must be
conceptually clear. It should specific and explain the expected relationship between two
variable that is independent and dependent variable. It must be logically consistent.

The important point to be considered while prepareation of hypothesis is research problem.

The construction of hypothesis is not easy task. The researcher should give importance to valid
investigation. The hypothesis must have great importance as it give direction, particular idea
and give focal point to research study. There are many examples of hypothesis like suppose if
one train is late so automatically others trains too late. Here hypothesis can be framed that
trains may be late and may not be late and researcher can do the research over that. So,
hypothesis is always based on certain logic and certain assumptions.

There are various features of hypothesis which are as follows:

1. It must be simple to understand.

2. It be must be specific.
3. It must be intellectually clear.
4. It must be easy to understand.
5. It must be of capable of verification.
6. It must be related to past experience.
7. It must be made on the basis of certain conclusion.
8. It must have objectivity.
9. It must be related to available technique.
10. It must have conceptual clarity.

Following is the explanation of it:

1. It must be simple to understand:

Hypothesis must be so simple that each and everybody can understand easily.

2. It must be specific:

Here specific means particular. Hypothesis must relate to the concerned research or study.

3. It must be intellectually clear:

It as intellectual as clear. It must represent the problem related to current situation and gives
clear idea how to solve that particular problem.

4. It must be easy to understand:

Hypothesis must be so easy and understandable that everybody can understand without much
problem.

5. It must be capable of verification:

Here verification means result, it must give a perfect answer for a given situation.

6.It must be related to past experience:

There are many Hypothesis, some of them are historical which shows that result can be
obtained with the help of past information.

7. It must be made on the basis of certain conclusion:

It should focus on the result in turn the conclusion can be drawn easily on the basis of that.

8. It must have objectively:

Hypothesis must be objective in nature and not a subjective one. It must relates with the
current situation.
9. It must be related to available technique:

Hypothesis is that tentative assumption which must related to the techniques which is easily
available like some parametric test.

10. It must have conceptual clarity:

Hypothesis is based on certain concept without proper concept the clarity of the hypothesis is
not perfect one.

So, in short hypothesis are temporary solution. But here problem is that how it must be
constructed. To understand this, we have to see various sources of hypothesis.

1. Observation: Hypothesis can be drawn from various observations. For example- why
monopoly is charging different prices to different consumers that means he is following
discriminating policy. On the basis of that the research can be made it.

2. Association: Another important source of hypothesis is association.

3. Sort of Knowledge: The most important source of hypothesis is knowledge. It can be

accepted or rejected on the basis of knowledge.

4. Culture and sub-culture: Hypothesis can be made on the basis of culture and sub culture too.
For example- the hypothesis can be made on the traditional culture of Nepal and modern
Nepal.

5. Investigation: Hypothesis can be constructed on the basis of investigation made by the

researcher.

6. Small survey: The hypothesis can be made on the basis of pilot study that means small survey
made the researcher.

So, it be seen that hypothesis can be made on the basis of various sources. There many
functions of the hypothesis which are as follows:

1. It gives proper direction to research staff.

It gives a road map or clear image to research staff. If hypothesis is not prepared it will be very
difficult for the research staff to conduct research which will be almost difficult for any one to
arrive at a proper conclusion.

2. It gives an idea about sense of enquiry.

It is the most important source of enquiry. Whenever any study taken place it happens only
because researcher has some kind of questions are moving in his mind for example when one
train is late automatically another train is also late then the researcher can find out this answer
by using simple hypothesis. So, it gives idea about how to make an enquiry about an any
problem.

3. It gives an idea about collection of data.

From the hypothesis the data can be collected. The data may be first hand that is original data
or second-hand data. The research gives an idea which kind of data needed for example if a
researcher has to do the field experiment in that case, he has to depend on experimental
hypothesis so in short it gives an idea which kind of data can be collected for that.

4. On basis of hypothesis theory can be formulated.

It is best way to formulate any kind of theory. When it is tested the information can be
collected from various sources and specific theory can be formulated and that can be applied in
any form of research and future researcher can use that.

5. It gives proper focus on the study.

It is very important because the researcher can give importance to the study. It gives a clear a
map of the road where exactly where researcher is now and where he has to go. That means it
completely focus on the particular study of which researcher has been taken.

6. It gives important conclusion.

From the various types of hypothesis, the researcher can take the important conclusion. Which
gives an information to the researcher that he must follow the rules for testing of hypothesis.

7.It gives a basis of study.

Hypothesis are the main base of any particular research. Without or improper forming of
hypothesis the result will not give a true picture of any research. So, study cannot be completed
without its using.

8. It is temporary in nature
Hypothesis are temporary means it is giving tentative solution for any particular problem. So,
researcher must find out first temporary solution for any specific problem.
Briefly all functions are here described:
It gives a road map or clear image to research staff. If hypothesis is not prepared it will be very
difficult for the research staff to conduct research which will be almost difficult for any one to
arrive at a proper conclusion.

Hypothesis are of different types which are as follows:

Types of Hypothesis

1. Descriptive hypothesis.
2. Relational Hypothesis.
3. Working Hypothesis.
4. Null Hypothesis.

5. Statistical Hypothesis

6. Complex Hypothesis

7. Analytical Hypothesis

1.Descriptive Hypothesis:
These are the type of hypothesis which shows the various features of different variable on
which research is going to be done. For example- to find out the unemployment among young
generation particularly graduates.

2. Relational Hypothesis:
This type of hypothesis gives the idea about relationship between two or more variables. The
relationship may be positive or negative. For example- rich families are spending much more
money on their recreation.

3. Working Hypothesis:
The working hypothesis provide the basis for further investigation. It is subject to modification
as the investigation proceeds, it is denoted as H1.

4. Null Hypothesis:
 These are hypothetical statement denying what are explicitly indicated in working
hypothesis. They do not nor were ever intended to exit in reality. It is denoted as H0.

5. Common sense Hypothesis:

This type of hypothesis shows common sense of different types of ideas. Common statement
mostly making confused like more using of mobile phone is creating much problem for the
person specially, young generations.

6. Complex Hypothesis:
These are the type of hypothesis which shows the aim at testing the existing of logically derived
relationship between practical similarity. So, we can see that there are different types of
hypothesis are there and its shows how important are these in the research area. They tell to
researcher the particular information how to collect information and how to do the work.

Hence, hypothesis is a concept which shows tentative generalization partially right or wrong.
As we know hypothesis are nothing but temporary solution to the problem. In every study of
research hypothesis are most important part of study or that particular research. Probably
these may be hypothesis or may not be. But in most of the research articles, in research journal
and in many proposals, hypothesis is may be possible.

Before coming to the final conclusion of every research the tentative assumption must be
checked with various tools and techniques which are available in the hands of researcher.
Following steps must be followed while tentative Generalizations are tested:

Step-1 Preparation of Hypothesis:

The first and foremost step in the checking of hypothesis, the research must formulate
hypothesis. It must have understandable qualify. Basically, the research has many tentative
generalizations. He or she has to select any two that is walking or null hypothesis. The null
hypothesis the innocent result while the walking hypothesis is what the researcher trying to
solve the problems.

Step-2 Assessment of tentative Generalization:

In this step it must be clear that the tentative Generalization is one tailed or two tailed. If
Ha is more than or less than. In that case researcher use one tailed or another one he can
use.

Step-3 Level of Significance:

As the researcher prepared the hypothesis, he must select the validity of it with the level of
significance. Most probably researcher user level of significance ten percent, five percent or at
the most one percent but always value must be taken into consideration in between Zero and
one.

Step-4 Finalization of sample:

Researcher must finalize the sampling. As without sampling the research could not be in
position to complete it. So, research must consider the sample from various alternatives. If the
sample is less than sample size of thirty then T-test must be applied. Otherwise, other various
types of tests are available.

Step-5 Analyzing and calculation of sample:

After completion of understanding and finalization of sample the researcher must analysis
and also calculates the sample that is random sampling distribution.

1.25: Hypothesis for the present study:

1. Ho: Social media marketing is not preferred by consumers over traditional channels of
marketing.
H1: Social media marketing is preferred by consumers over traditional channels of marketing.

2. Ho: There is no positive impact of social media on consumer buying behavior

H1: There is positive impact of social media on consumer buying behavior.

3. Ho: All social media types are not equally preferred by consumers for buying decisions.

H1: All social media types are equally preferred by consumers for buying decisions.

4. Ho: Area of consumer and its impact are independent of each other.

H1: Area of consumer and its impact are dependent of each other
 CHAPTER 02

REVIEW OF LITERATURE
2.1. LITERATURE REVIEW

Social media such as Facebook, Twitter, Youtube and most recent Instagram, are acknowledged
as online platforms where users are able to sign up with a personal account in order to
communicate with other users, receive information or be advertised. The rapid increase in the
popularity of social media created the necessity for the use of social media as a fundamental
tool of industry's promotion and product sales. Social media are able to modify the marketing
methods, since businesses interact immediately with the consumers-user (Solomon et al, 2010).
Social networking sites lead the race in human communication and have a huge impact in
human behavior (Cheung & Lee, 2010). The high levels of effectiveness of social media
compared with traditional ways of communication, has leaded the industry titans to report the
compulsory-coordinated presence every company should have on social media in order to
succeed in digital environments (Kaplan & Haenlein, 2010).

In 2010, Cox made a research in order to investigate the relation between age and consumer’s
attitude. In this particular research is concluded that social media users' behavior in contrast to
other digital users ‘behavior differed among various age groups. Cox (2010) mentioned that the
age group of 18-28 expresses a positive attitude against blogs, videos and brands' official
websites. Age group of 35-54 seems to prefer videos and brands' channels. The general
conclusion is that direct advertisements are welcomed by the users. On the contrary, pop up
advertisements or those with website extensions were labeled as disturbing by users of social
media and web (Cox, 2010). Internet groups seem to affect directly the consumer's purchase
intentions while having an indirect impact on the final purchase decision making. For example,
social media are an extraordinary means of expression and information sources about products
and services, thus facilitating the users' final decision (Kozinets et al., 2010).

Social media comprises of blogs, public forums, social media sites, that is used for
communication of some information. The data provided in social media is beneficial for
organization/ firms and customers. Customers benefitted from the product information posted
by others, recommendations by other customers. Firms benefitted by the information provided
by the customers in social media about their products, getting the feedback on their product
market, information about the prospective customers, customers need and demographic
characteristics. This article emphasis on how social media information is essential for
companies and customers in their decision-making process (Zembik, 2014). ManjuAhuja et al.,
(2003), In their article, targeted on investigating the factors that influence the shopping
behavior and browsing behavior of consumers during online purchase specifically, the study has
been conducted about the consumers using business-to-consumer sites. The researchers also
investigated buying preferences of consumers with varied demographic profiles which may
reveal different buying approaches and consumer behaviors for a specific class of merchandise
and services. Social media is the1 most effective factors that influence buying behaviour of
customers.

Ates BayazitHayta (2013) conducted a study to grasp the influence of social media in today’s life
and brings new view and to see the consequences of social media networks on shopping
behaviors of shoppers. The sample consisted of a around 600 young shoppers between the age
limit of 18-24 years who use social media marketing and have account in any of the social
networks. Interview technique was used to confirm the study. The primary data collected
through structured form consists of inquiries about demographic data of teenagers, the length
and aim of teenagers to use net and social media. In the Questionnaire, 5-point scale was
applied to confirm the link between buying behaviors of teenagers and social media. The
Cronbach Alpha scale was employed to find the connection between shopping behaviors of
shoppers and social media and the result was 0.965. The result of the study implies that social
media technique produces a vital impact on buying behaviors of shoppers with respect to age
and academic qualification.

The study explains how social media influence on the buying decision process of consumer and
also how it differ at each stage of buying decision process. A structure form and two semi-
structured interviews is used to gather data for the study. The study finds that Social Media
varies at every stage of buying decision. As the buyer dig deep to get more information about
the product, the influence of Social Media is reduced. The study highlights that there areThe
study explains how social media influence on the buying decision process of consumer and also
how it differ at each stage of buying decision process. A structure form and two semi-structured
interviews is used to gather data for the study. The study finds that Social Media varies at every
stage of buying decision. As the buyer dig deep to get more information about the product, the
influence of Social Media is reduced. The study highlights that there are possibilities for the
sellers to hold the influence of Social Media in buying decision.

The researchers had found that the consumers who are using facebook, twitter, whats up are
maintain their attitude towards social websites. We know that advertising is a paid form but
non personal communication are using by various types of traditional marketing. Based on the
various studies as compare to offline traditional marketing now many business community are
using the help of various social websites. Research shows that social websites are viral and
carrying very important message and information and also creating brand building and brand
equity too. The study shows social websites different from old traditional methods of
marketing. Social websites are not only attracting consumers but also the various business
community also using the various social websites.

In modern time to stay in competition is a challenge for many business community and social
media is one gift for them to stay in the competition by attracting consumers. The research
shows that still many consumers are using electronic mail still but as research shows that its not
giving immediate response which is possible in social websites like facebook, whats up. So many
consumers are attracting towards social websites.
Various experts like Rajesh Lalwani the promoter of blogwork says that every business man
have various commercial opportunities are available the marketers can take the advantage of
social websites.
Many researchers found out that social media marketing promotes various services like:
a. Audit of social media.
b. More blog development.
c. Monitoring of social media.
d. Advertisement on face book.
e. Tweet on twitters.
f. Sharing on whats up.
g. Uploading on you tube.

Many research articles, surveys shows that social websites are new domain for many
consumers. Since, last twelve years the internet has changed the life of millions consumers.
Internet has transformed the life of consumers from traditional to modern and to electronic.
Due to rise in applicability of internet day by day every walk of life, consumers are influenced by
these social websites. Before introduction of social networking sites people were talking over
phone, sending inland letters which is now completely changed due to introduction of social
websites, Now it‟s very easy for consumers to contact with any one of their friend within
millions of second part.

Now social networking sites are using by many consumers as also business purposes when both
are communication with each other. With introduction of social media marketing such blogs,
online forums, social networks etc. social media provides an extra ordinary floor for many
consumers who want to purchase the goods as also services too. Due to introduction of social
media marketing business community are taking advantage over those who are using
traditional marketing. In modern era the choice of consumers has changed, they want quality
goods at low price without much wasting of time and social networking sites are the best way
to follow that understand the behavior of consumers. No doubt to understand behavior of
consumers are not an easy task, but social media has certain features which are changing the
mind of the consumers like sharing information, discussion on net, sharingof images and many
more things.

The research shows that social media has offered many ways to attract the customers. The
research studies done by many experts and shown that there are many business communities
are there who are now creating web pages and these web pages are changing minds of
consumers. Now traditional consumers want to become internet consumers. Not only the
business community but also consumers are taking the advantage of social media. Study shows
that in olden days traditional marketing like pamphlets were using as medium of advertising the
product, which is taking place by social media marketing.

The review of literature has shown that research for the last two decades was undertaken on
impact of social media marketing on various angles and parameters viz., purchase intention,
perception, attitude, buying-decision, demographic profiles, reviews and recommendations,
Web-based social communities, Soci-cultural factors, e Word of mouth. The review shows that
social networking sites are following transformation process.

Various studies were conducted on different age groups about their thinking on social
networking sites. The research provides useful information to the companies which conveys
that companies should not disturb the customers during their privacy and should find ways of
advertising the products by engaging the customers. Companies should get the feedback from
the consumers and those positive feedbacks can be passed on to others by way of social media.
The social media tools can be effectively utilised as for marketing the products by bringing in
consumers to participate in the marketing activity. Instead of pulling the consumer alternatively
companies can push the messages to the consumer through social media tools. With the
presence of internet, sellers and buyers are connected round the clock and round the world.

There are various researches who investigating about consumer satisfaction from Social Media
Marketing. For that Social Media is doing Loyalty Programmes too. Some studies say that
companies should take advantage of social networking sites by involving the audience too. The
researcher have done study about ten weeks and so and build a model as buying decision of the
customer through online. Everyday millions of chat rooms are opening and that affect the
behavior of customer. The Research Statistical analysis shows that how these web pages are
changing the mind of consumers.

The survey shows every day many people join Facebook, Twitter, Bloggs and Marketing are
doing advertisement and that also to attract Consumers. Nowadays Social networking sites are
very successful tool available in the hands of Marketing. Study also says that before buying any
product by the Consumer he is always doing survey. It depends upon the product like if he
wants to buy from his relatives, friends etc. where when he wants to buy routine product like
breads he does not ask anything is known as routine response.

There are different types of Internet customer are there who are always doing survey before
buying any product. They are reading the reviews which are written by various users on Social
networking sites. Research was conducted on time that how much time consumer is spending
on net to buy the product. There are various tools available to Social networking sites which
find center at of traction customers. Some research 69 studies and explained that Social
networking sites are no-marketing factor which influence the customers. Reviews also suggest
that not only internet but various other agencies like family with whom consumers are living.

In modern world to create a brand image is very difficult one, social media has make the way
very easy as anybody can use the path and can build the image. Not only the garment,
electronic, electrical but many industries are associated with social networking sites. We are
living the globalized era where everything is very easy and any consumer can buy any services
and goods too within very short span of time. In last some years the way of shopping has
changed as well improved too. In olden days consumers were buying goods and services with
the help of moving here and there. But in today‟s world this has changed the imagination and
thinking of many end users. And the reason is online buying of goods and many different types
of services. At present everywhere consumers are purchasing wide variety of products and
other things through online purchasing. Many online users are active for twenty four hours like
many users who are using facebook and Whatsapp are updating their status in few minutes
every day and they are showing that social media really is now active.

There are many end users are there who are updating their images, photograph on instagram
every day or in other words in fractions of seconds. The researcher has made an a complete
study to bring out what the earlier researcher has done and what the researcher want to do
and to find out gap in between that. Hence the researcher has taken up this study with
reference to Darchula district.
 CHAPTER 04

RSEARCH METHODOLOGY AND RESEARCH

DESIGN
3.1 Introduction of social websites which are doing marketing and which is affecting
consumer behavior.
Social websites which are doing marketing is a new method of gaining importance or
attention among various consumers. Now a days electronic mouth is going to play crucial
role. Social Media Marketing pulls attraction and push those people who are reading and
want to share it on their social websites.

Social websites which are doing marketing created new avenue for most marketers and
consumers who can communicate, exchange ideas, sell and purchase of variety of goods
and also services through use of social websites which are doing marketing.
Technology in general and internet in particular is filled with many people who are
individuals who wanted to satisfy, share communicate due to that there are many
companies now a days have pages on social websites which are doing marketing to give
information about various types of product, and also services and many more.

In modern times scenario social websites like blogs, FaceBook, Twitter, Skype etc. is going
to play very crucial role in decision making of the consumer. Social Media marketing is not
only powerful tool have emerged but also it is very cheap too. Most surveys showing that
around 75 percent nepalese who are in the young age are using social websites for sharing
with each other, communicating, buying, selling and also purchasing of goods like olx.com.
As today popularity of these sites increasing due to that various corporate houses and even
Government organizations are using it as a tool to reach masses audiences in the way to
attract them.

Consumers are using Social websites in their routine life for many different reasons or
purposes. Many of the people who want to maintain relationship interpersonally. Due to
various advantages of social media not only to consumer but to a businessman also to
connect with the end user or consumers directly. Hence, it becomes very much important to
understand how social websites are going to change behavior of consumers and our study is trying
to look into this.

3.2 Procedure for research methodology for the current study of impact of social
media on consumer buying behavior with reference to napalese economy:
The most important thing have to understand that Research methodology is system to solve
the related problem. It is not only science but also an art how to do research scientifically. It
is the logic to be used in the context of research. Here problem can be identified from the
various literature reviews and previous knowledge. The researcher has to understand the
problem which gives him the direction how to solve the problem. Research methodology
consists of series of actions or steps necessary to carry out research work effectively. It not
only involves research methods but also logic behind the methods we use, in the context of
research.

3.3. Research area according to various parameters:

The researcher has tried to collect the on the basis of various parameters and various areas
are selected from the Nepal which are as follows:

Location: Researcher has selected area related to Nepal that is Kathmandu, Kanchanpur,
Dang, Darchula, and near by area.
Demographic ratio: Data collected from various categories of males and females.
Age group of range: As we know that social websites which are now doing the job of
marketing are vary much popular not only among young generation but also from every age
and every corner of the city and town and mostly teen agers and almost in the ages of all
people are going for online now. So, age is ranging from 18 to 55 years and above also
taken into consideration.

Occupation: on the basis of occupation the data collected from various students,
professionals, service class employees, housewives and even from various business class
people and others are taken into for that.

3.4: Methods of collection of data:

A technique of data collection refers to tools/methods of selecting the units for data. In the
broader sense, there are two techniques for selection of units in the process of collecting
data they are;

1. Census technique
2. Sample technique.

Data plays an important role in research. Facts, information or premises properly collected
and formally presented for the coming and for the purpose of drawing conclusions may be
called data. Statistical information collected, formatted and presented for the purpose of
establishing relationships between variables can be included in the data.
Mostly there are two way to collect data as popularly known as primary and secondary data.
So, data can be collected through two different sources that is Primary that is first hand and
Secondary data which is already published

1. Primary Data:
Primary data is known as first hand information in order to find out the solution of a specific
problem. Primary data is collected from its primary sources i.e.- source of its origin, where
the data is generated. It is first time collected by its investigator for statistical analysis.

2. Secondary data:

Secondary data are the data are in actual existence, in records, having been already
collected and also treated statistically. In short, it is the data that have been already
collected, presented, tabulated and located with analytical that have been collected by
some agencies, government department and research workers. It can be obtained from
records, books, government publications and journals.
Utmost care has taken by the researcher while collecting the data from the various sources.

3.6 Sampling technique / size

The survey will be conducted on the basis of sampling method. The total population Is 2000
customers. The researcher is going to develop sample design, the researcher will be
collecting the information from 600 customers that is 30% of the population were selected
for the present study in Nepal, Other than Nepalese districts and village areas in the Nepal
.
3.7 Statistical methods
There are millions of people who are researchers are using various statistical methods. For
calculation of whether hypothesis is giving correct result or not. Many researchers are
preparing more hypothesis even many of them don’t know how to do proper test applicable
and due to that improper and invalid result is coming. In simple language hypothesis means
testing of two variables with each other and one will be treated as alternative hypothesis
whereas other will null. For example- a coin when through in air two possibilities will come
that 0.50 chances are coming head and 0.5 chance at tale. In short everybody knows what
probability in general and particularly in stats. Everywhere normality testing is mandatory
steps to be followed in hypothesis testing. No doubt hypothesis is a mathematical temporary
solution which is not proved yet and it is like mathematical expectations based on the
variance. Hypotheses are based on amount of information collected by the researcher. It
has a proper validity and reliability too.

It is based on certain assumption which cannot be accurate. If respondents have not given
proper response the result will be inaccurate. May be the hypothesis is working for
someone and for other it may be null and vice versa. Hypothesis can be tested on the basis
of parametric and non-parametric test like z-test, t-test, one-way ANOVA are the type of
parametric test whereas Wilcoxon Mann Whitney test, Kruskal Wallis test are non-
parametric. It depends upon the researcher which of test he will apply for the testing of
hypothesis.

In case of parametric test population parametric must be taken into consideration. It is

always based on many assumptions. Whereas in case of non-parametric it does not involve
population parametric, it can be calculated on the basis of measured on any scale, it can be
used with all types of scale, it is very easy to calculate or compute these kinds of test. It
may be noted in this regard that it may be exact procedure adopted like in case of
parametric. But it has many problems in testing of hypothesis like it require larger amount of
data in under to arrive at conclusion.

For the purpose of various analyses simple data descriptive statistics methods will used.
Charts and diagrams will be used to emphasis and highlight growth of impact of social
media. In addition to this, the statistical tools such as tabulation, charts, measures of
dispersion, ANOVA, Chi-square tests will be used by the researcher.

3.8 Hypothesis testing

The hypothesis will be tested by the following techniques:

1. CHI-SQUARE TEST
2. ANOVA
3. Multi-variate analysis
4. Factors Analysis

3.8.1 Chi-square test

Chi-square is the measure which checks or evaluates extent to which a set of the observed
frequencies of a sample of deviates from the corresponding set of expected frequencies of
the samples. It is the measure of aggregate discrepancies actual and expected frequencies.
This distribution is called χ2 distribution. It was first introduced by helmet in 1875. It is also
known as “goodness for fit”. It is used as test static in testing hypothesis that provides the
theoretical frequencies with which observed frequencies are observed.
It is denoted as X^2 =
(F0-Fe)2
Σ _______
Fe
3.8.2 ANOVA (Analysis of variance)
In stats we mostly want to get an information if the mean of two popular are equal. To
answer this, we need to use ANOVA (analysis of variance). It is a particular type of
statistical hypothesis testing mostly used in the analysis of experimental data. In the typical
application of ANOVA (analysis of variance), the Hypothesis which is Null is that all groups
are simply random samples of the same population. The wordings of ANOVA (analysis of
variance) is the synthesis of different types ideas and it is always used for various purposes
and implement it.
3.8.3 Multi-variate analysis
The importance of Multi-variate analysis is to show the related structure and meaning
clearly showing within these sets of variables through application and inferences of many
statistical method. It is showing richer original design, it can help control for the error.

3.8.4 Factor analysis

Factor analysis is yet another tool for testing hypothesis as it shows data reduction tool. It
shows correlated variables with a smaller set of variables. It allows to use gain insight in
categories, it is also useful in regression. It helps us to explain various variables using few
factors.

3.9 Study of object selection

The Researcher has interacted with various customers who are the active users of the
internet in general and various social websites in particular.
Customers who are interacted with the researchers are the actively using online marketing
and before any purchasing they will decide everything before buying product online. Due to
limitations of monetary factors and time the researcher has collected the data from the
resident of Kathmandu, Kanchanpur, Dang, and Darchula.

3.10 Design of the present research

In the current research, mostly qualitative primary data collected through mails, messages,
and oral interview with various types of customers through questionnaire which is pre coded
and pre tested near by area; where as secondary data collected among various Social
Websites, various Literature Review, National, International Journals and various Thesis.
3.11 Interview questions design for consumers

The questionnaire is sub divided into four parts which are as follows:

First part:
The questions which are designed for customers is starting with the personal information of
the customers that is Name of customer, Age, Gender, Education, Occupation etc.

Second part:
The second part of the questions are related with the internet users or mobile users who are
using internet on mobile.
Third Part:

The third part of the questions are related with the information about social media marketing
and how consumers are using social websites which are doing marketing for buying
purpose.

Fourth Part:
The last that is fourth part shows the suggestions given by the customers.

3.12 Utility of the research

1. Checking of there is positive or negative impact of co-relation between social websites
which is doing marketing and consumer Buying behavior.
2. Understanding the concept of Social Media Marketing.
3. Understanding the concept of Consumer behavior and various different types of factors
affecting it.

4.Understanding of various social media marketing tools like Facebook, twitter, skype
and their importance for consumer.

5.Understanding the concept of Social Media Marketing and it’s impact on consumer
buying behavior.

6.How Traditional Marketing is different from Social Media Marketing.

7. Need to understand why Social websites which are doing marketing has
changed the outlook of customer towards buying behavior.
 CHAPTER 04

RESULT AND DISCUSSIONS