The Impact of Social Media on Consumer Choice

DOES SOCIAL MEDIA AFFECT CONSUMER CHOICE?
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Executive Summary
The main motive of the research is how consumer decision-making process has
changed in the Digital age, mainly in the field of social media. The information available
to us goes on increasing day by day resulting in exposure and presenting different
features of data via Social Web. In today’s market social media usage has become part
of daily routine to access different platforms either for conducting business or for
purchasing. The research contains literature review to get the analysis of various critics
on how consumer behavior has changed immensely. In order to get the best outcomes
and recommendations in terms of Starbucks, survey of twenty people has been done to
go through the changes in their behavior on online purchasing in recent years. Interview
of two managers has also been taken to understand the values that companies do for
social media marketing which ultimately leads to proper decision-making of the
consumers.
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Table of Contents
Task 1................................................................................................................................4
1.1 Identifying factors contributing to process of research project selection....................4
1.2 Undertaking critical review of key reference of research topic....................................6
Aims, Objectives and Research Questions.......................................................................7
Task 2................................................................................................................................9
2.1 Matching resources effectively to research questions................................................9
2.2 Undertaking proposed research investigation...........................................................15
2.3 Recording and collating required data.......................................................................16
Task 3..............................................................................................................................16
3.1 Using appropriate research evaluation techniques...................................................16
3.2 Interpreting and analyzing results.............................................................................17
3.3 Making recommendations as well as justifying further research...............................23
Task 4..............................................................................................................................24
4.1 Using format and appropriate media for presenting outcomes of research..............24
Reference List..................................................................................................................25
Appendices......................................................................................................................28
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Task 1
1.1 Identifying factors contributing to process of research project
selection
According to Hollensen and Raman, (2014, p.17), in today’s world, social media
becomes a part and parcel of an individual’s life. Different social media platforms like,
Twitter, Facebook, on the other hand, Instagram and LinkedIn includes a number of
users which keeps on growing daily. Overall it is found that more than millions of people
are actively communicating through social media. Marketers are being attracted towards
the growing rate of users and have recognized that social media marketing is a major
part of helping marketing interactive techniques. Also, the companies helped via social
media marketing in order to communicate with the customers for decision-making
purposes. This collaboration with the marketers helps them to identify and understand
the needs of the customers and their choices regarding particular product or service.
The main business factors of social media towards consumers are that it acknowledges
in estimating products, making endorsement to the contacts, and sharing any of the
investments through social media platform. Online marketing imposes communication
through these social podiums which create an impact on consumer choices and
marketing strategies. Customer socialization theory anticipates that the increase rate of
communication among patrons not only affect cognitive attitudes but also the intuitive
and behavioral aspects. Advertising on social media folio has taken a new chapter of
consumer’s behavior. The consumers spending more time in online window shopping
tend to make purchases or start business on social media because they are more active
and communicate with people largely. Consumer’s choices or decision making has a
huge impact on the recommendations made by their connections on social media. It
helps in brand awareness, buying attitudes and in advertising mediums. The more
generous responses a product or service receives, the more rates of consumer
purchasing increases. Therefore, it shows that most of the top brands and their services
views it and lead to social media marketing for its brand image to grow.
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Starbucks is considered as the largest coffeehouse chains in the world, and definitely
the largest in the United Kingdom. It was established in the year 1998 and has over 539
stores alone in UK and more than 21,366 stores across the globe. Starbucks
successfully entered the European market because of its number of Seattle Coffee
Company in the UK (Starbucks Coffee Company, 2017). Both the companies shared a
familiar culture which focuses on the assurance to customer-built coffee. It has same
company values with a bonding of respect for each other for the consumers and the
environment.
Starbucks buys and roasts high-quality whole bean coffees and its essence of having a
genuine service makes the customers attracted towards the company. These
coffeehouses have become a flare for all coffee lovers in the entire world because they
are getting an inviting atmosphere and a superb cup of mouth watering richly brewed
coffee. In order to please the taste buds, they offer varieties of premium teas, pastries,
and other delicious treats. The ambiance filled with a music which is chosen for its
artistic decoration and the appeal. The environment welcomes people to chat, meet up
or even sometimes to work. As a part of daily routine, it stands up as a neighborhood
hanging out place which makes it as proud reward to be so close to the heart of the
customers. Everything the company takes as an initiative to do makes it sure to do for
the benefits of its patrons, i.e., from the commitment of serving fine quality of coffee to
the way engaging with the communities for developing the business in a responsible
way. It has also participated in social media platform to reach out to its consumers for
availing the offers and discounts and receiving high rates of reviews from the. The
advertisements they put on their Facebook pages helps them to rise in their business
prospect (Starbucks Coffee Company, 2017).
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Figure 1: Logo of Starbucks
(Source: Starbucks Coffee Company, 2017)
1.2 Undertaking critical review of key reference of research topic
As stated by Ashley and Tuten, (2015, p.16), the usage of social media has reached a
high growth level where the consumers in recent years, prefer to purchase products and
services and also to conduct business through social media platforms. Consumers are
getting influenced while buying products because of variety of options available in social
media and the comments and reviews of other users about the particular product or
services. In order to analyze whether social media really affects in consumer’s choices
of purchasing, it is needed to look after and research the amount of time they spent on
the internet and how they get influenced by other users. On company’s pages on
Facebook, Instagram, Twitter, etc it gets to see the pictures, comments, and reviews of
the people visited the place or purchased items from that particular websites. Generally,
the consumers planning to visit or purchase go through the opinions of other customers
and judge it as the rates the particular site obtained. So, it can be said that social media
affects in customer’s decision making as it has opened a wide platform where people
can post pictures, comment, and review as per their opinions.
As mentioned by Cader and Tenaiji, (2013, p.546), the onset of social media has
emerged a new landscape that creates a new grid of personal connections. Business
enterprises see abundant opportunities to extent its platform towards the mass and are
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