Influence of Social Media on Consumer’s Purchasing Behavior

A Research Proposal

Abstract

The purpose of this research proposal is to analyze social media activities and different influencing factors which are changing the perception of consumer’s decision making process. This research will be advantageous to the business organization who are undertaking their business through the means of social media which will provide them in-depth understanding and essence of consumer experience. Furthermore, research proposal will analyze the consumer’s power of word-of-mouth transmitted via online social websites. Determine positive and negative impact on consumer behavior through social media. Similarly, Consumers commitment loyalty towards brand interrelated with purchasing decision. Viral ads and Mobile activity are changing the consumer perceptivity on purchasing a product. Social commerce related to increased trust and intention to purchase a product. For the research methodology Qualitative method will be practiced which will focus to answer research question how and why certain circumstances might occur rather than finding how often with 30 numbers of participants. Questions are prepared from the information collected from literature review. Thematic analysis will be done within the data which will focus to pinpoint, examine and analyze the information gained from the consumers. Conclusively, proposal imparts implications and discussion of the research, conclusion, references and appendix.

Table of Contents

1.0 Introduction…………………………………………………………………………………

1.1Objective of the study………………………………………………………………..

2.0 Literature review……………………………………………………………………….

3.0 Research Methodology……………………………………………………………

3.1 Research plan…………………………………………………………………………..

4.0 Discussion of implications of research…………………………………………………….

5.0 Conclusion………………………………………………………………………………….

6.0 Reference

7.0 Appendix

Influence of social media on consumer’s purchasing behavior.

1.0 Introduction

In context of present business, there is an increasing interest of consumer activity in digital interaction especially in social media. Information technology is providing empowerment and encouragement to consumer act from becoming inactive receiver of information to become active customer of information related to business products. Previously the consumer performing activity was controlled by companies whereas in context of today’s business, the entire marketing strategy has been completely changed. Therefore, companies now have understood the changing behavior of consumer and developed mutual benefits from the use of social media in the business. Online activity in consumer’s behavior is gradually growing at a very fast rate. With the tremendous involvement in social media and user created content (UCC) on sites, like Face book, blogs, Google My business, YouTube, Trip Advisor, LinkedIn, Foursquare for business, etc (Heinonen,2011).

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Consumer decision making process to purchase a product contains various steps from the recognition of a need through pre-purchase search of information about the product through social media to satisfy the need, the evaluation of purchase and post purchase including experience involving social media. Social media is being used by the consumer as a platform for sharing information. Individual consumers are utilizing different social media tools such as reviews, ratings, online forum and communities, recommendations to interact with other consumers via online. Within the social network domain increasing share of communication has been arise because consumers are spending more and more time on social media.

1.1 Objectives of the Study

This research proposal focuses on the quality of consumer experience, an understanding of underlying reasons, opinions and motivations. Social media activities will be analyzed and influencing factors which are changing the perception of consumer to purchase a product. Some of the objectives of this research are as follows:

How social media is influencing the consumer to purchase a product?

How Brand, viral advertisement, Mobile activity are changing the perception of consumer?

Positive and negative impact on consumer’s behavior through social media.

Why consumers are using social media as a means of social commerce?

Analyze the consumer’s power of word-of-mouth transmitted via online social websites.

Why consumers are being involved in variety of activities while purchasing a product?

2.0 Literature review

2.1 Electronic Word of Mouth (EWOM)

A major influence on consumer decision making is from the information gained through social media. The growth of digital consumer behavior is due to the use of increased technology. Word of mouth is considered to be key areas that are developing through social media. Electronic word of mouth (EWOM) transmitted through social websites has Positive and negative influence on consumer purchasing intention. Reviews, feedbacks, recommendation, ratings, reviews given by the customers for the purchase of product and services are generally available in internet. Word of mouth such as positive feedback, recommendations, ratings, and reviews about product has a positive impact on consumer’s decision making process. On the other hand, Negative word of mouth or any negative comments about any product or brand has a strong influence consumers’ purchasing intention than positive comments(Taylor, 2015).

2.2 Social Commerce

Social media is used as a platform for sharing information and social interaction to generate social support among the customers. Several factors like product uncertainty, seller uncertainty which is effecting the consumer’s buying intention is influencing consumers’ purchasing behavior through social commerce. An individual consumer review the another particular consumer feedback and opinion in order to reduce their risk about the pre-purchase information. Social support influences the trust of consumer which is generated through social media. The effect of social commerce is helping on consumer’s trust and intention to purchase a product (M. N. Hajli, 2014).

2.3 Brand Loyalty

Consumer perception on brand also influences purchasing decision process. Consumers have put on view to adoption of decision rule to purchase a product that they are often familiar with and well-known brands. With the engagement of social media applications like Face book, it has increased the commitment towards brand which is also indicated as positive WOM activities. It has shown that when a consumer is more loyal towards a particular brand they tend to talk and purchase more the product which therefore spreading positive WOM. Consumers like to purchase from a brand they are familiar with the product. As well as they recommend to other consumer to purchase the product. “59 % of consumer like to purchase a new product that is from the similar brand they are familiar with on the other hand only 21% of the consumer like to new product from the brand they like.” (Hutter et al., 2013).

2.4 Viral Advertisement.

Viral ads on social media sites are another factor that has an impact on the consumer purchasing intention. Viral advertising is a strategy to do business which uses social platform for promotion and encouragement to purchase a product. Information about the product spreads from one consumer to another through their social networks it is same as the virus spread from one person to another. From social media consumer receive the page link and share the ad link to different websites as well as pass through emails, web page and social media profile (Holly, 2013).

2.5 Mobile Activity

In today’s world consumers are frequently using their cell phone and consumer behavior in mobile setting is increasing in context of shopping online. Many consumers prefer to shop online using their mobile via social media application rather than visiting the store. Instead of visiting the store to purchase a product consumers are more likely to purchase product simply scrolling the list of products and touching them which can inspire the ownership feeling of consumer psychologically. Mobile display ads uplift consumer attitudes and intentions for high-involvement to the purpose to purchase a product (Stephen, 2016)

3.0 Research Methodology

Qualitative research methodology will be practiced for the research which will focus to answer research question how and why certain circumstances might occur rather than finding how often. Grounded theory will be followed in order to interpret the meaning with the social interaction with consumer and discover new understanding of consumers’ behavior. Thematic analysis will be done within the data which will focus to pinpoint, examine and record the information gained from the consumers. Interpretivism research philosophy will be followed where data will be collected from small samples, in-depth investigations related to research objectives.

3.1 Research Design

Every person plays a role of consumer because they purchase a goods and services in their daily life. So, In order to conduct the research in total 30 numbers of IIBIT students and teachers will be taken an interview by asking open ended question providing them with some option asking them to chose among option and state their reason or idea. The questions which will be asked are prepared by information gained from literature review. The data will be gathered and analyzed from interview taken to 30 numbers of IIBIT students and teachers by asking both open ended questions related to purpose of the research. Answers from open ended question will provide the researcher with the variety of ideas and help to collect data from those ideas. Likewise, Valuable data will be analyzed from information gathered from wide variety of idea.

4.0 Discussion and Implications of research

Every individual’s consumer experience, an understanding of underlying reasons, opinions and motivation can be gained from the implication of research. This research will be appropriate to the business organizations, retailers who are conducting their business via social media which will provide them in-depth understanding of consumer experience and influencing factors. Findings/ data will be the answers related to the questions that are prepared for interview. Electronic word of mouth such as reviews, feedbacks, recommendation and ratings are changing the perception of consumer. Within those EWOM which is the most influencing factor can be understood through perspective of consumer. Electronic Word of mouth can have both positive and negative impact on consumer purchasing intention. Recommendations, ratings, and reviews about product have a positive impact on consumer’s decision making process. Among Positive or negative EWOM which has an overpowering influence on consumer purchasing decision making process can be analyzed in-depth. Before purchasing a product consumer are unsure about a new product and seller they are going to purchase a product, how consumer are being benefitted by social media as to gather more information related to product can be understood. How Brand commitment, mobile activity and viral ads are changing the decision making intention of a consumer can be find out. Inclusively, information gained from consumer experience will benefit the online business organization and also will provide them what kind of marketing strategy should be implemented.

6.0 Conclusion

This research proposal is centered on the nature of consumer’s experience; provide an insight to underlying reasons, considered opinion and motivations of consumers. Qualitative methodology, thematic analysis, data collected from small sample thirty numbers of participants by asking open ended interview question. Moreover, Consumer decision making process contains various steps to purchase a product from pre-purchase process which involves recognition of a need ,search of information about the product through social media to satisfy their need, the evaluation of purchase and entire post purchase activities including experience involving social media tools such as reviews, ratings, feedback, recommendations etc. Electronic word of mouth which is transmitted through social media is empowering to consumer. Positive and negative EWOM has a huge impact on consumer purchasing intention. Social commerce is helping consumer to build a trust, social support information sharing etc. Viral advertisement, brand loyalty and commitment are related with the decision making process of consumer. After reviewing the complete research business organization and retailers who are performing their business through online via means of social media will be benefited as well as helps them to enhance their marketing strategy.

References

Bronner, F., & De Hoog, R. (2014). Social media and consumer choice. International Journal of Market Research, 56(1), 51-71.

Hajli, M. N. (2014). A study of the impact of social media on consumers. International Journal of Market Research, 56(3), 387-404. doi:10.2501/IJMR-2014-025

Hajli, N., & Sims, J. (2015). Social commerce: The transfer of power from sellers to buyers. Technological Forecasting and Social Change, 94, 350-358. Retrieved from http://www.sciencedirect.com/science/article/pii/S0040162515000141. doi:https://doi.org/10.1016/j.techfore.2015.01.012

Heinonen, K. (2011). Consumer activity in social media: Managerial approaches to consumers’ social media behavior. Journal of Consumer Behaviour, 10(6), 356-364. doi:10.1002/cb.376

Holly, P.,(2013). Social Media as a Marketing Tool: A Literature Review. Retrieved from http://digitalcommons.uri.edu/tmd_major_papers/2

Hutter, K., Hautz, J., Füller, J., & Dennhardt, S. (2013). The impact of user interactions in social media on brand awareness and purchase intention: The case of MINI on Facebook. Journal of Product and Brand Management, 22(5), 342-351

Stephen, A. T. (2016). The role of digital and social media marketing in consumer behavior. Current Opinion in Psychology, 10(C), 17-21. doi:10.1016/j.copsyc.2015.10.016

Taylor, C. R. (2015). The International Journal of Advertising in 2015 and beyond. International Journal of Advertising, 34(1), 1-2. doi:10.1080/02650487.2014.996277

Appendix-A Interview Questioner

How do you think social media is changing your perception while purchasing a product?

Viral advertisement

Mobile display ads

Social interaction

Please provide a reason below

………………………………………………………………….

What is the most influencing factor for you while purchasing a product?

Ratings/Review

Brands

Feedbacks

Recommendation