Impact of Social Media Marketing on Online Purchasing Decisions
Added on 2023-04-03
46 Pages13534 Words428 Views
Data Science and Big DataPhilosophyStatistics and Probability
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DISSERTATION
(A study on the impact of social-media marketing on online
purchasing decisions; A case study on Amazon)
1
(A study on the impact of social-media marketing on online
purchasing decisions; A case study on Amazon)
1
Acknowledgement
I would like to pay a great thanks to my supervisors who had provided me high level of
assistance during the entire investigation and make it possible for me to complete the study
successfully and on time as well. There coherent and unconditional support really proven as a great
help for me in completing the investigation successfully without compromising the quality.
Moreover, I am really thankful to every participants and members in the study i.e. my friends &
family members who provided me enough level of support & inspire to not lose hope and devoted
full mind to carry out the investigation.
2
I would like to pay a great thanks to my supervisors who had provided me high level of
assistance during the entire investigation and make it possible for me to complete the study
successfully and on time as well. There coherent and unconditional support really proven as a great
help for me in completing the investigation successfully without compromising the quality.
Moreover, I am really thankful to every participants and members in the study i.e. my friends &
family members who provided me enough level of support & inspire to not lose hope and devoted
full mind to carry out the investigation.
2
Abstract
In the modern period, social media emergence has revolutionised the traditional and earlier
modes of marketing communications used by the corporations i.e. televisions, print media,
magazines, radio and newspaper ads. Social-media marketing (SMM) is a continuous and ongoing
process whereby companies gain excessive user traffic or millennial audience base through the use
of social-media networking channels. In this, companies promote their offerings on social media
platform & foster the relationship with the stakeholders online. Amazon is a leading American
cloud computing and e-commerce business that has a very broad product portfolio and
headquartered in Seattle, Washington, US. The research aimed at finding out the impact of its social
media marketing on the online buying intentions and purchasing preferences of the consumers. For
this a survey has been conducted to gather the responses of 100 regular online customers of Amazon
using inductive approach and intepretivism philosophy which has been examined by thematic
perception test. The findings of the report concluded that SMM greatly helps the audiences in
diversified ways such as delivery of required information online about product quality, prices and
offers. Thus, users can search any information any time just on a single click which helps them to
make solid buying decisions & satisfy their own needs & expectations accordingly. Word of mouth
(WOM) publicity at the social media encourage the buyers to demand a particular goods and service
that Amazon is offering at its e-commerce and also provide them enough information in selecting
the best item. High interactivity is the main reason why they prefer SNS highly in comparison to the
other traditional mediums of marketing such as TV and newspaper ads & others. Under the online
channel, people can easily read the other persons opinion and know their reviews and comments
thus, it delivers trustworthy & reliable information to the user upon which they can easily believe to
make good decisions. Thus, it must be recommended to the Amazon’s marketing division to
consider the reliability of the content, boosting consumer engagement and establishing greater
connectivity and interactivity using social networking medium.
3
In the modern period, social media emergence has revolutionised the traditional and earlier
modes of marketing communications used by the corporations i.e. televisions, print media,
magazines, radio and newspaper ads. Social-media marketing (SMM) is a continuous and ongoing
process whereby companies gain excessive user traffic or millennial audience base through the use
of social-media networking channels. In this, companies promote their offerings on social media
platform & foster the relationship with the stakeholders online. Amazon is a leading American
cloud computing and e-commerce business that has a very broad product portfolio and
headquartered in Seattle, Washington, US. The research aimed at finding out the impact of its social
media marketing on the online buying intentions and purchasing preferences of the consumers. For
this a survey has been conducted to gather the responses of 100 regular online customers of Amazon
using inductive approach and intepretivism philosophy which has been examined by thematic
perception test. The findings of the report concluded that SMM greatly helps the audiences in
diversified ways such as delivery of required information online about product quality, prices and
offers. Thus, users can search any information any time just on a single click which helps them to
make solid buying decisions & satisfy their own needs & expectations accordingly. Word of mouth
(WOM) publicity at the social media encourage the buyers to demand a particular goods and service
that Amazon is offering at its e-commerce and also provide them enough information in selecting
the best item. High interactivity is the main reason why they prefer SNS highly in comparison to the
other traditional mediums of marketing such as TV and newspaper ads & others. Under the online
channel, people can easily read the other persons opinion and know their reviews and comments
thus, it delivers trustworthy & reliable information to the user upon which they can easily believe to
make good decisions. Thus, it must be recommended to the Amazon’s marketing division to
consider the reliability of the content, boosting consumer engagement and establishing greater
connectivity and interactivity using social networking medium.
3
Table of Contents
CHAPTER – 1 INTRODUCTION.......................................................................................................6
1.0 Introduction................................................................................................................................6
1.1 Background of the study............................................................................................................6
1.2 Statement of the problem...........................................................................................................7
1.3 Research aims and objectives....................................................................................................8
1.4 Research questions.....................................................................................................................8
1.5 Significance of the study............................................................................................................8
1.6 Structure of the dissertation.......................................................................................................9
CHAPTER – 2 LITERATURE REVIEW..........................................................................................10
2.0 Introduction..............................................................................................................................10
2.1 Concept of social-media marketing.........................................................................................10
2.2 Role of Social Media Advertisements in e-commerce business models.................................12
2.3 Benefits and challenges faced in social-media advertisement.................................................13
2.4 Impact of social-media marketing on online purchasing decisions.........................................15
CHAPTER – 3 RESEARCH METHODOLOGY..............................................................................18
3.0 Introduction..............................................................................................................................18
3.1 Research philosophy................................................................................................................18
3.2 Research approach...................................................................................................................19
3.3 Research design.......................................................................................................................19
3.4 Research type...........................................................................................................................20
3.5 Data collection.........................................................................................................................21
3.6 Universe and sampling.............................................................................................................22
3.7 Sampling techniques................................................................................................................22
3.8 Data analysis............................................................................................................................23
3.9 Ethical implications.................................................................................................................23
CHAPTER – 4 DATA FINDINGS AND ANALYSIS........................................................................25
4.0 Introduction..............................................................................................................................25
4.1 Data analysis and examination................................................................................................25
CHAPTER -5 CONCLUSION & RECOMMENDATIONS.............................................................37
5.0 Introduction..............................................................................................................................37
4
CHAPTER – 1 INTRODUCTION.......................................................................................................6
1.0 Introduction................................................................................................................................6
1.1 Background of the study............................................................................................................6
1.2 Statement of the problem...........................................................................................................7
1.3 Research aims and objectives....................................................................................................8
1.4 Research questions.....................................................................................................................8
1.5 Significance of the study............................................................................................................8
1.6 Structure of the dissertation.......................................................................................................9
CHAPTER – 2 LITERATURE REVIEW..........................................................................................10
2.0 Introduction..............................................................................................................................10
2.1 Concept of social-media marketing.........................................................................................10
2.2 Role of Social Media Advertisements in e-commerce business models.................................12
2.3 Benefits and challenges faced in social-media advertisement.................................................13
2.4 Impact of social-media marketing on online purchasing decisions.........................................15
CHAPTER – 3 RESEARCH METHODOLOGY..............................................................................18
3.0 Introduction..............................................................................................................................18
3.1 Research philosophy................................................................................................................18
3.2 Research approach...................................................................................................................19
3.3 Research design.......................................................................................................................19
3.4 Research type...........................................................................................................................20
3.5 Data collection.........................................................................................................................21
3.6 Universe and sampling.............................................................................................................22
3.7 Sampling techniques................................................................................................................22
3.8 Data analysis............................................................................................................................23
3.9 Ethical implications.................................................................................................................23
CHAPTER – 4 DATA FINDINGS AND ANALYSIS........................................................................25
4.0 Introduction..............................................................................................................................25
4.1 Data analysis and examination................................................................................................25
CHAPTER -5 CONCLUSION & RECOMMENDATIONS.............................................................37
5.0 Introduction..............................................................................................................................37
4
5.1 Conclusion and recommendations...........................................................................................37
5.2 Limitation and future research.................................................................................................39
REFERENCES...................................................................................................................................40
APPENDIX........................................................................................................................................44
5
5.2 Limitation and future research.................................................................................................39
REFERENCES...................................................................................................................................40
APPENDIX........................................................................................................................................44
5
CHAPTER – 1 INTRODUCTION
Research title: A study on the impact of social media advertising on online purchasing decision: A
case study on Amazon
1.0 Introduction
In the first section of the thesis, the background & a brief overview of the study has been
presented to have an idea about the area of investigation. Moreover, the problem statement also has
been analyzed to identify the need of the current study and on the basis of it, target aims and
objectives has been framed. Further, the contribution of the study has been presented along with the
structure that how the study will be progressed.
1.1 Background of the study
In modern times, Information and Communication Technology (ICT) has witnessed
considerable change in the global corporate scenario with the emergence of wireless technology,
new and unique enterprise software, applications and others. In the past decade, technological
advancement through internet revolutionised major changes in corporate world by the means of
online presence. Now-a-days, internet becomes an important part of everyone’s life because it
provided an opportunity to the people to interact with others using online networking without the
need of physical meetings. According to the recent statistical data, in Australia, 85.1% proportion of
the population totalled to 20,679,490 is the internet users who access various online medium and
channels for different purpose. The emergence of web 2.0 technology can be considered as a unique
advancement which brought significant change in the online commerce & trading functions by
introducing social-networking channels & social media (Tuten and Solomon, 2014). It built a strong
interconnectivity and boosted the active participation on internet. The technology emphasizes more
upon user-centred content and use social media sites as the channel of developing connection with
the public (Heymann-Reder, 2012). With the rise of web connectivity & social-media users,
establishments started incorporating social networking channels like Facebook, blogs, video sharing
channels (YouTube) and other web applications in their marketing and promotional campaign to
attract greater number of audiences from all around the world. Social-media marketing (SMM) is a
continuous and ongoing process whereby companies gain excessive user traffic or millennial
audience base through the use of social-media networking channels. In this, companies promote
their offerings on social media platform & foster the relationship with the stakeholders online
(Hoffman and Fodor, 2010). It has an ability to reach broad market covering both the inbound and
outbound consumers, facilitates online communication, relationship management and boost brand
popularity to fuel competitive success. It made a significant contribution in the e-commerce by
6
Research title: A study on the impact of social media advertising on online purchasing decision: A
case study on Amazon
1.0 Introduction
In the first section of the thesis, the background & a brief overview of the study has been
presented to have an idea about the area of investigation. Moreover, the problem statement also has
been analyzed to identify the need of the current study and on the basis of it, target aims and
objectives has been framed. Further, the contribution of the study has been presented along with the
structure that how the study will be progressed.
1.1 Background of the study
In modern times, Information and Communication Technology (ICT) has witnessed
considerable change in the global corporate scenario with the emergence of wireless technology,
new and unique enterprise software, applications and others. In the past decade, technological
advancement through internet revolutionised major changes in corporate world by the means of
online presence. Now-a-days, internet becomes an important part of everyone’s life because it
provided an opportunity to the people to interact with others using online networking without the
need of physical meetings. According to the recent statistical data, in Australia, 85.1% proportion of
the population totalled to 20,679,490 is the internet users who access various online medium and
channels for different purpose. The emergence of web 2.0 technology can be considered as a unique
advancement which brought significant change in the online commerce & trading functions by
introducing social-networking channels & social media (Tuten and Solomon, 2014). It built a strong
interconnectivity and boosted the active participation on internet. The technology emphasizes more
upon user-centred content and use social media sites as the channel of developing connection with
the public (Heymann-Reder, 2012). With the rise of web connectivity & social-media users,
establishments started incorporating social networking channels like Facebook, blogs, video sharing
channels (YouTube) and other web applications in their marketing and promotional campaign to
attract greater number of audiences from all around the world. Social-media marketing (SMM) is a
continuous and ongoing process whereby companies gain excessive user traffic or millennial
audience base through the use of social-media networking channels. In this, companies promote
their offerings on social media platform & foster the relationship with the stakeholders online
(Hoffman and Fodor, 2010). It has an ability to reach broad market covering both the inbound and
outbound consumers, facilitates online communication, relationship management and boost brand
popularity to fuel competitive success. It made a significant contribution in the e-commerce by
6
boosting strong connection in the cyberspace because, now, customers can inquire any sort of
information using internet and make rational buying decisions to satisfy themselves (Kaur, 2016).
Amazon is a leading American cloud computing business that is listed on NASDAQ and
operates worldwide. It is an e-commerce business that has a very broad product portfolio and
headquartered in Seattle, Washington, US. It is the strongest online retailer firm that has a strong
customer base and offers the best online shopping experience to them. It has number of online retail
websites in UK, Ireland, US, Germany, Netherland, Brazil, Japan, India, Mexico, Australia, Spain
and others which shows its worldwide presence. It promote its brand through social networking
channels under the promotional campaign wherein the first post each and every information on
social sites like Facebook, Twitter and Pinterest and others and get amazing results to build a strong
brand popularity and thereby gain competitive edge (Amazon’s Approach to Social Media, 2013).
The thrust of the current research is to investigate the impact of social media marketing and
advertisement practices on the online buying preferences and decisions of the consumers. The study
will investigate that how social sites can influence consumers purchasing intentions by making an
online communication with the users. Furthermore, it emphasized on finding the key benefits and
challenges that Amazon has gained and might faced in their social-media promotional programs.
1.2 Statement of the problem
With the rapid evolution of social networking medium, companies all over the world has paid
attention to devise many SMM promotional plans and strategies to attract million of users on their
websites so as to strengthen their brand popularity inside and outside the domestic marketplace.
Thus, the investigation will find out the key determinates of customers buying decisions in the
online market and thereby identify that how social-media platform influence the users whether to
buy the particular goods or services or not. The main problems towards which the study pays focus
is determining the impact of social-media marketing and advertisement practices of Amazon on the
purchasing intention & behaviour of customers (Shenoy and Prabhu, 2016). It is important to be
studied because currently, almost each & every entity regardless their size and scope of operations
are involved in the online marketing by the means of social-media networking channels. Moreover,
it will be a two-folded study which will carry out a thorough investigation of both the positive &
negative impact of SMM on the Amazon’s performance. Finding out the key challenges in the
marketing practices of the business enable the investigator to make solid plans & strategies that e-
commerce companies might implement so as to foster the strong online connectivity & build sound
relationship with the existing and potential users to gain large customer traffic (Chitra and Sasikala,
2016). Thus, the main emphasize of the thesis will be upon finding out the impact of social media
7
information using internet and make rational buying decisions to satisfy themselves (Kaur, 2016).
Amazon is a leading American cloud computing business that is listed on NASDAQ and
operates worldwide. It is an e-commerce business that has a very broad product portfolio and
headquartered in Seattle, Washington, US. It is the strongest online retailer firm that has a strong
customer base and offers the best online shopping experience to them. It has number of online retail
websites in UK, Ireland, US, Germany, Netherland, Brazil, Japan, India, Mexico, Australia, Spain
and others which shows its worldwide presence. It promote its brand through social networking
channels under the promotional campaign wherein the first post each and every information on
social sites like Facebook, Twitter and Pinterest and others and get amazing results to build a strong
brand popularity and thereby gain competitive edge (Amazon’s Approach to Social Media, 2013).
The thrust of the current research is to investigate the impact of social media marketing and
advertisement practices on the online buying preferences and decisions of the consumers. The study
will investigate that how social sites can influence consumers purchasing intentions by making an
online communication with the users. Furthermore, it emphasized on finding the key benefits and
challenges that Amazon has gained and might faced in their social-media promotional programs.
1.2 Statement of the problem
With the rapid evolution of social networking medium, companies all over the world has paid
attention to devise many SMM promotional plans and strategies to attract million of users on their
websites so as to strengthen their brand popularity inside and outside the domestic marketplace.
Thus, the investigation will find out the key determinates of customers buying decisions in the
online market and thereby identify that how social-media platform influence the users whether to
buy the particular goods or services or not. The main problems towards which the study pays focus
is determining the impact of social-media marketing and advertisement practices of Amazon on the
purchasing intention & behaviour of customers (Shenoy and Prabhu, 2016). It is important to be
studied because currently, almost each & every entity regardless their size and scope of operations
are involved in the online marketing by the means of social-media networking channels. Moreover,
it will be a two-folded study which will carry out a thorough investigation of both the positive &
negative impact of SMM on the Amazon’s performance. Finding out the key challenges in the
marketing practices of the business enable the investigator to make solid plans & strategies that e-
commerce companies might implement so as to foster the strong online connectivity & build sound
relationship with the existing and potential users to gain large customer traffic (Chitra and Sasikala,
2016). Thus, the main emphasize of the thesis will be upon finding out the impact of social media
7
ads on customer behaviour.
1.3 Research aims and objectives
Aim: The focus of the research is “To critically investigate the role of social-media marketing
practices upon the online purchasing preferences and decisions of the consumers in the context to
Amazon”.
Objectives:
To investigate the role and significance of social-media advertisement & marketing
To explore the relationship between consumer perception towards online shopping & social-
media ads placed by Amazon
To identify the major benefits and challenges faced by Amazon in their social-media
advertisement
To recommend the most viable strategies to the Amazon to reach the crowded audiences
during their buying decisions journey
1.4 Research questions
Q.1. What is the concept of marketing through social-media platform?
Q.2. How Amazon’s social media networking channels can influence the buying decisions of the
consumers?
Q.3. What are the opportunities and risks can be faced by the Amazon’s marketing division in their
SMM?
Q.4. How Amazon and other marketers can utilize the SMM tools effectively in order to reach
millennial consumer base?
1.5 Significance of the study
In today’s period, companies invest a large amount of capital in the online marketing, more
importantly, on social media platform to gain a heavy crowd and large audience base. With context
to Amazon, it also invest a huge fund on online marketing to bring attention of the audiences from
inside and outside market for acquisition of more profit. Although, there are enormous studies has
been investigated prior but majority of the scholars has focused the core attention on the benefits &
drawbacks of the SMM for the businesses instead of findings its impact on the buying decisions of
the consumers. Thus, the study is decided to be conducted focusing the impact of the social-media
marketing practices of Amazon on the buying intention, preferences and decisions of the social-
media users. The outcome of the study presents an unique contribution for the e-commerce
businesses like Amazon to create the innovative plans & strategies to effectively utilize the tools of
social-media marketing to reach the larger audience base. In addition to this, scholars who are
8
1.3 Research aims and objectives
Aim: The focus of the research is “To critically investigate the role of social-media marketing
practices upon the online purchasing preferences and decisions of the consumers in the context to
Amazon”.
Objectives:
To investigate the role and significance of social-media advertisement & marketing
To explore the relationship between consumer perception towards online shopping & social-
media ads placed by Amazon
To identify the major benefits and challenges faced by Amazon in their social-media
advertisement
To recommend the most viable strategies to the Amazon to reach the crowded audiences
during their buying decisions journey
1.4 Research questions
Q.1. What is the concept of marketing through social-media platform?
Q.2. How Amazon’s social media networking channels can influence the buying decisions of the
consumers?
Q.3. What are the opportunities and risks can be faced by the Amazon’s marketing division in their
SMM?
Q.4. How Amazon and other marketers can utilize the SMM tools effectively in order to reach
millennial consumer base?
1.5 Significance of the study
In today’s period, companies invest a large amount of capital in the online marketing, more
importantly, on social media platform to gain a heavy crowd and large audience base. With context
to Amazon, it also invest a huge fund on online marketing to bring attention of the audiences from
inside and outside market for acquisition of more profit. Although, there are enormous studies has
been investigated prior but majority of the scholars has focused the core attention on the benefits &
drawbacks of the SMM for the businesses instead of findings its impact on the buying decisions of
the consumers. Thus, the study is decided to be conducted focusing the impact of the social-media
marketing practices of Amazon on the buying intention, preferences and decisions of the social-
media users. The outcome of the study presents an unique contribution for the e-commerce
businesses like Amazon to create the innovative plans & strategies to effectively utilize the tools of
social-media marketing to reach the larger audience base. In addition to this, scholars who are
8
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