Social Media and Consumer Behavior

This assignment delves into the profound impact of social media on consumer behavior. It analyzes how user interactions on platforms like Facebook influence brand awareness and purchase intentions, drawing upon academic research and real-world examples. The assignment further explores the role of social media in shaping consumer decision-making processes and highlights the importance of understanding this evolving landscape for businesses.

Consumer Insight

Table of Contents
LITERATURE REVIEW................................................................................................................1
Influence of social media marketing upon buying behavior of consumer...................................1
REFERENCES..............................................................................................................................11

LITERATURE REVIEW
Literature review may be defined as a technique or process by which individual can
critically evaluate the secondary sources of information. It includes books, journals and research
paper which facilitate better understanding towards the research topic. It provides deeper insight
to the researcher in terms of benefits and drawbacks of the research topic (Ferrari and et.al,
2015). Through this, researcher is able to conduct research in an appropriate manner. The present
literature will discuss the influence of social media upon the buying behavior of consumer. It will
also shed light on the consumer insight aspect. Through this, marketer or researcher is able to
assess the triggers or motivating factors which highly affect their buying decisions.
Influence of social media marketing upon buying behavior of consumer attitude of customers
towards social media marketing
Consumer insight may be defined as the cross-way among the interest aspect of
consumers and features of brand. The main objective behind such interaction is to assess the
behavior, mindset and expectation from the particular brand (What are consumer insights, 2016).
Through this, marketer can easily identify the aspect which motivates consumer to make
purchase of the product or services of particular brand due to their beliefs, attitude, awareness
and features of the product. In accordance with the view point of Jobber and Ellis-Chadwick
(2012), now a days people spend huge time on social networking sites such Facebook, twitter
and my year book. As per the view point of Hair Jr and Lukas (2014) social media is the best
medium in the area of communication. Through this, marketer can easily promote and distribute
their products and services.
In the present era, marketer can undertake social networking sites which help them in
attracting large number of customers. By placing advertisement on the sites of social media,
marketer can easily communicate all kinds of information in terms of discounts, combo offers
etc. Frequency in relation to make the use of social networking site is very high in the present
scenario. Therefore, customers have positive attitude towards the social media marketing. This
statement is contradicted by Hollensen (2015) that not all the customers operate social
networking sites. Most of the customers do not access social media sites due to lack of awareness
about such sites. High percentage of old people does not access to the social networking sites
and thereby it adversely affect the customer awareness towards the product or services which are
offered by different marketers.Nevertheless, large segment of customers make use of social
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media sites. Increasing awareness towards the social networking also provides assistance to
marketer in order to promote their products through social networking sites.
Homburg, Kuester and Krohmer, (2013) claimed that customer having positive attitude
towards the social media marketing. Growing knowledge towards the access of social media
marketing helps marketer in attracting more customers. In social media marketing, company or
marketer places advertisement on the right side of screen. Through such advertisement, marketer
can easily covey information to the existing or potential customers about the price, feature and
offer etc. Through this, customers are able to compare products or services of one brand to
another. It provides assistance to customer in making cost effective decisions which provide
greater benefits to them. Thus, large number of customers prefer to access the advertisement
which is placed by an organization on the sites of social media. This aspect represents that
customer possesses positive attitude towards the advertisement that is displayed on social
networking sites. However, it is to be critically evaluated by Gerbaudo (2012) that customer can
also make comparison of brands by going through the sites of that particular brand. By accessing
the particular sites of brand, customer can get in depth knowledge about the brand and there by
the information about the effectiveness of products and services.
According to the view point of Tufekci and Wilson (2012) there is an increasing trend
towards the working women. Due to this aspect, they do not have enough time to visit retail
store. It is the main cause due to which they prefer to access products or services through online.
This aspect shows that there is large number of customers who prefer to make online shopping of
the products or services. In this situation, social media sites provide brief knowledge about the
brand as well as cost and benefits of the products or services. Thus, costumer owns positive
attitude towards the products or services which are advertised on social networking sites. Such
attitude proves to be more fruitful for the marketer in terms of high sales and profit. It helps them
in attaining competitive advantage in the dynamic business arena.
Influence of social media marketing upon consumer awareness
Customer awareness refers to the knowledge and information which customer possesses
about the different brands and its products and services. Customer awareness about the product
and services is also the main factor which is offered by different companies at the competitive
marketplace. According to the view point of Stephen and Galak (2012) people are highly
attached to a particular brand which they use in their routine life. Once customers are attached to
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the particular brand or product, then they prefer to make the use of products of that particular
brand. For instance: Customers who make the use of L'Oreal shampoo to strengthen their hair.
In this case, if shampoo gives positive results, then customer prefers to use the shampoo of that
brand only. This aspect reflects that customer decision making is highly affected by the features
and outcomes of brand. However, it is to be critically evaluated by Solomon and et. al. (2014)
that not only features and outcome of the brand impact upon the consumer buying decisions, but
awareness about the product and services is also a factor which closely affects the decision
making aspect of customers. If, customers have no information about the substitute products
which are offered by different companies then they avoid to buy the product of another brand.
Thus, to resolve such issue, marketer prefers to place advertisement on social media sites as there
is an increasing trend towards the access of social networking sites. Thus, by placing
advertisement on Facebook, twitter etc. organization or marketer is able to develop awareness
among the customers.
It is argued by Goh, Heng and Lin (2013) that customer’s knowledge and information are
highly affected by the frequency to which existing as well as potential customers make the use of
social media. There is high level of variation among customers who make the use of internet.
Demographic factors such as age, income and qualification aspects have high level of influence
upon the extent to which customer makes the use of social networking sites. Usually people who
are in the age of 16-50 are influenced from the social media marketing. People who lie in such
age group make the use of social networking sites and thereby, they are attracted from the
advertisement which is displayed on the social networking sites. Whereas, people are not lie in
such age group make the use of internet as well as social networking sites with the slow pace.
This aspect also creates in pushing up the sales and profitability aspects to the desired level.
In addition to this, qualification of customer segment is also the main aspect which is
heavily influenced the customer awareness. Advertisement which is placed by company or
marketer upon social networking sites also gets affected by the educational aspect of customers.
If, customers have no knowledge about how to access Facebook, twitter etc. then they are unable
to go through the advertisements which are placed by the companies on the social sites. Thus,
level of education is also the main factor which impacts the level of customer awareness.
Divol, Edelman and Sarrazin (2012) claimed that social media marketing plays a vital
role in developing awareness among customers in relation to the products or services which are
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offered by different marketers. In the present era, large number of people are having smart
phones or tablets. Through this, they can access social networking sites at any time without
facing any difficulties. Thus, company can easily develop awareness among customers by
placing advertisement on social media. Usually, companies prefer to make advertisement on the
right side of screen which is much eyed catching. As per the scientific facts, customers primarily
see the things which are placed in the right side. It is the main cause due to which marketer gives
advertisement in the right side of screen. Through this, marketers are able to give information to
the customers about the brand, their features and price factor.
Social media advertisements also provide information to customers about the offers
which are introduced by an organization. For instance: Dove has placed information on the social
networking sites that they give conditioner with the pack of shampoo on the special occasion
such as anniversary of organization or any festival. By this, Dove can evolve awareness among
customers about the products or services which are offered by the respective brand. It provides
opportunity to customers to make comparison of the prices and benefits provides by dove as
compared to other brands. Thus, social media provides more assistance to marketer in relation to
develop awareness among the customer segment. It is contradicted by Wang, Yu and Wei,
(2012) that marketer or company can communicate information only when they have attained
success in the selection of appropriate social media channel. Now, there are several social
networking sites which customer accesses. Thus, companies also require to make high level
efforts in order to make the selection of suitable social networking sites. By assessing the number
of active users, company can easily provide information to the wide customer segment about the
products or services that are offered by them.
In accordance with Solomon, Russell-Bennett and Previte (2012) content of social media
advertisement also has high level influence upon customer awareness. In order to develop
awareness, brand owner requires to adopt an interesting social content strategy. As per this
aspect, marketer needs to frame interesting content in order to attract large number of customers.
To make interesting content, marketer is required to add images, slogans etc. in the content of
advertisement. If, content is more interesting then targeted audience like, share and comment on
such viral images. It is one of the best mediums which provides assistance to the retail
companies in order to generate awareness among the customers. This statement is contradicted
by Hudson and Thal (2013) that sometimes such images also create confusion in the mind of
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targeted audience. Sometime, images which are viraled by an organization about the offers are
outdated. Nevertheless, there are some people who continuously like the images to show their
loyalty towards that particular brand. In addition to this, people who like the slogans of the brand
prefers to share it with their loved ones. This aspect may cause confusion which is occurred in
the mind of targeted customer segment.
According to the view point of Sparks, Perkins and Buckley, (2013) integration between
organizational strategies is highly required in order to develop awareness among the consumers.
Company can develop awareness through social media only when personnel of the organization
actively participate in such kind of marketing campaign. It is not possible for organization to
individually make efforts to deliver information about the products or services. Brand owner of
organization can develop awareness by undertaking multiple hubs and spoke approach. Hub
refers to the team of trained experts who provide guidance to the personnel of firm. Besides this,
spoke places more emphasis upon the special social media activities. By this, owner of the brand
is able to provide brief introduction of the products or services which are offered by them.
As per the view point of Hutter and et. al. (2013) company can build and develop healthy
relationship with the potential customers by taking into consideration the timing aspect. By
assessing peak time, brand owner can place their advertisement at that particular time. For
instance: During 12 am to 3 am, large number of the customer access social networking sites
such as Facebook, twitter etc. In addition this, by identifying days, brand owner is able to
provide information to the wide group of customers. For example: During Wednesday to Friday,
there is the high percentage of customers who access social media. By assessing such kind of
information, firm can establish healthy engagement with the targeted audience. It enables brand
owner to place their advertisement during the peak period and thereby, they become able to
communicate the features and other characteristics of products to the customers. However, it is to
be critically evaluated by Goh, Heng and Lin (2013) that placement of an advertisement during
the peak period of time imposes high cost in front of the marketer. For such type of campaign,
brand owner has to incur high financial cost. Thus, financial capability of an organization also
affects the flow chart of marketing campaign. If, company does not have enough financial
resources then they are unable to create awareness among the people. Besides this, if company
does not have capability in relation to the assessment of peak hours or days, then they are not
able to take desired outcome from the marketing campaign.
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Tufekci and Wilson (2012) claimed that social media such as Facebook, twitter are the
best mediums which help in globalizing brand. Facebook has worldwide presence and it is
operated by all the people who reside at different places of the world. Thus, by making
advertisement on the social site, brand owner can create awareness among the customers. For
instance: dairy milk has placed an advertisement on Facebook about the product such as dairy
milk silk as well as silk bubbly. Through this, brand owner of dairy milk is able to provide
information to the targeted audience about the new products or services which are offered by
them. It is the only best way or medium through which brand can make their global presence. In
the present era, more than 1.35 billion people use Facebook. Thus, by undertaking such medium,
marketer or company can reach to the global customer segment. This statement is contradicted
by Gerbaudo (2012) that on an average user rate of Facebook is increasing by 14% which is the
positive sign for the organization who make the use of social sites in their advertisement.
Nevertheless, only 864 million people access Facebook on the daily basis. It is also the main
cause which highly impacts the success and outcome of marketing awareness campaign.
In accordance with the view point of Wang, Yu and Wei, (2012) followers of the
particular brand also play a vital role in developing awareness among the customers. By
commenting on images, company itself or their followers can make interesting the images which
are uploaded by them. According to the view point of Wang, Yu and Wei, (2012) company or
brand owner can increase customer traffic on the web page by including key terms on the
website. Through this, company is able to communicate information about the product or
services to the large group of customers. Through this, brand owner is able to create awareness
among customers and thereby, it can take benefit from it. Customer awareness makes remarkable
contribution in the productivity and profitability aspects of an organization.
Impact of social media on the decision making of customers
Decision making of customers may be defined as a process in which marketer selects one
activity or action over the several alternatives which are available to them. According to the view
point of Hudson and Thal (2013) social media marketing closely impacts the buying decisions of
customers. Now days, social Media has become a vital part of human life and their dependency
on such sites are also increased as time passes. Social networking sites such as Facebook, twitter
and Instagram have several users. Through such sites, individuals can share information with the
large number of people. Social media provides opportunity to marketers in order to communicate
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with their existing as well as potential customers. It facilitates effective communication as well
as coordination between customers and marketers. Such interaction provides assistance to
marketer or brand owner to build or develop healthy relationship with the customers. Thus,
communication which takes place through social media has high level of influence upon the
customer’s decision making. Marketer can assess likes, dislikes, wants, desires and expectations
of customers with the help of effective communication. Through this, marketer is able to produce
or deliver the products or services as per the needs and wants of customers. It helps marketer in
attracting large number of people towards the products or services which are offered by them.
Good image of brand helps organization in maximizing their profitability aspect. However, it is
to be critically evaluated by Solomon, Russell-Bennett and Previte, (2012) that if, marketer fails
to build and maintain effective communication with the customers then it negatively impacts the
decision making aspects of therm. For instance: If marketer undertakes social media to provide
information to the targeted audience about the hair spray which is recently launched by them.
In this case, if such product is not available in the market then it closely hampers the image of
that particular brand. This aspect also affects decision making of the customers.
As per the view point of Wang, Yu and Wei (2012) in social media group of people are
interacting with each other and sharing their feelings towards the particular brand which they
use. On Facebook, Twitter individual share their feelings with friends and family members.
Usually, recommendations which are communicated by the friends and family members have
high level of influence upon the decision making aspect of customers. For instance: Jorz
recommend the shoes of Nike to his cousin. He told him that design of the shoes which are
offered by Nike is very unique. Besides this, he also said that prices of Nike shoes are also very
reasonable. Thus, feeling and suggestions which are shared by the loved one of individual on
social networking sites closely influence the purchasing decision of customers.
Social media positively influences the decision making aspects of people. This statement
is contradicted by Divol, Edelman and Sarrazin (2012) that social media not only makes positive
impact upon the decision making aspect of customers. Social media also has negative impact
upon the buying decisions of customers. It is not necessary that people who share their feelings
are always in terms of positive. When people express their feelings then they also share the
negative aspects of other brand. For instance: As per the above mentioned, Jorz has
recommended the shoes of Nike to his cousin. In addition to this, he has also criticized the shoes
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of Reebok on the basis of their price. He said that prices of Reebok shoes are very high as
compared to Nike. In this, individual favors one brand and thereby, he represents his views in
against of another brand. Thus, social media has both positive and negative implications upon the
buying decision of consumers.
Goh, Heng and Lin (2013) claimed that 59% people access to the social networking sites
whereas 30% people make access to Twitter. On the basis of this aspect, large number of people
access Facebook and thereby, they make interaction with each other. Thus, by placing
advertisement on social networking sites, marketer can increase their customer base. In addition
to this, marketer can also increase the impulse purchasing of customers. When people see
advertisement then they are attracted towards the advertisement which is displayed on the social
networking sites. For instance: when individual sees discounting offers then he or she thinks to
purchase that product in order to get price benefits. Thus, social media plays a significant role in
impulse buying or purchasing decision of the customers. Besides this, social media marketing
may be served as a tool which helps marketer in developing awareness among the customers. For
instance: when people go to retail store then they think or recall product which is advertised on
social media. This aspect also influences the decision making aspect of customers.
As per the view point of Goh, Heng and Lin (2013) there is a growing trend towards the
working of women. Due to this aspect, they have less time to go to retail store and purchase
product which is needed. It is the main cause due to which working women prefer to make online
shopping of the products or services. It provides convenience to them and there by encourages
people to make online shopping. In this case, social media marketing plays a vital role in
influencing decision making aspect of customers. For instance: individual who wants to purchase
the electronic gazettes, than they can access offers which are placed by different types of
marketers. Social media marketing provides opportunity to individual in order to make the
comparison of price, features and other aspects of the product. It provides assistance to
individual to purchase the most suitable product at the best prices. However, it is to be critically
evaluated by Tufekci and Wilson (2012) that security aspect acts as a barrier in getting desired
outcome from the social media marketing campaign. Usually, people who make purchase of
products and services through online store, they are required to give information to marketer
regarding their bank accounts. Increasing rate of crime causes the feeling of insecurity among the
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people. It is also the main aspect which affects the buying decision of customers who make
online shopping of the products and services.
According to the view point of Solomon, Russell-Bennett and Previte (2012) awareness,
consideration, intent and decisions are the main phases. By going through such stages or phases,
consumer makes decision in the respect of buying products or services. Such process of
consumer decision making is highly influenced by social media. Customer makes decision in
relation to purchase products and services when they have identified any need. In this situation,
customer awareness towards brand as well as products and services closely affects purchasing
decisions. Thus, social media plays a crucial role in creating awareness among the potential
customers about the products or services manufactured by them. Thus, by identifying the need of
potential customers, marketer is able to identify the actual needs and wants of them. Through
this, marketers are able to place appropriate advertisements on Facebook and Twitter. It helps
marketer in developing awareness among the customers. In addition to this, Facebook also
makes assessment in page views. It provides deeper insight to the marketer about the number of
users who visited the page. Through this, marketer is able to make extra efforts in order to attract
large number of customers.
According to the view point of Hugstad and Durr, (2015) social media marketing has
positive influence upon the buying decisions of customers. In past, marketer placed
advertisement through traditional mediums such as newspapers, books etc. This form of
promotional method is not highly effective. Moreover, through traditional methods of
advertisements, marketer is unable to approach the global customers. In addition to this, they are
also unable to make the clear image of brand in the mind of customers. Social media marketing
provides assistance to the marketer in resolving such kind of issues. More the people operates
social networking sites such as Facebook and Twitter then more the visibility of the brand
becomes clear in the mind of potential customers. As more image of the advertised product
displayed on the screen people are attracted towards such products (Is Social Media the Biggest
Influencer of Buying Decisions, 2015). Besides this, it also acts as a reminder which recalls the
products and services of particular brand when individual is going to make buying decision.
Thus, social media marketing influences the buying decisions of customers to the large extent.
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REFERENCES
Books and Journals
Divol, R., Edelman, D. and Sarrazin, H., 2012. Demystifying social media. McKinsey Quarterly.
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Ferrari, S. and et.al., 2015. A literature review of clinical tests for lumbar instability in low back
pain: validity and applicability in clinical practice. Chiropractic & manual therapies.
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Gerbaudo, P., 2012. Tweets and the streets: Social media and contemporary activism. Pluto
Press.
Goh, K.Y., Heng, C.S. and Lin, Z., 2013. Social media brand community and consumer
behavior: Quantifying the relative impact of user-and marketer-generated content.
Information Systems Research. 24(1). pp. 88-107.
Hair Jr, J.F. and Lukas, B., 2014. Marketing research. McGraw-Hill Education Australia.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Homburg, C., Kuester, S. and Krohmer, H., 2013. Marketing management: A contemporary
perspective. McGraw-Hill Higher Education.
Hudson, S. and Thal, K., 2013. The impact of social media on the consumer decision process:
Implications for tourism marketing. Journal of Travel & Tourism Marketing. 30(1-2). pp.
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Hugstad, P.S. and Durr, M., 2015. A study of country of manufacturer impact on consumer
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Hutter, K. and et,al., 2013. The impact of user interactions in social media on brand awareness
and purchase intention: the case of MINI on Facebook. Journal of Product & Brand
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Jobber, D. and Ellis-Chadwick, F., 2012. Principles and practice of marketing (No. 7th).
McGraw-Hill Higher Education.
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the base of the pyramid: Bridging the gap between for‐profit and social responsibility
strategies. Strategic Management Journal. 36(2). pp.307-317.
Solomon, M., Russell-Bennett, R. and Previte, J., 2012. Consumer behaviour. Pearson Higher
Education AU.
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Solomon, M.R. and et. al., 2014. Consumer behavior: buying, having, and being. Upper Saddle
River, NJ: Prentice Hall.
Sparks, B.A., Perkins, H.E. and Buckley, R., 2013. Online travel reviews as persuasive
communication: The effects of content type, source, and certification logos on consumer
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Stephen, A.T. and Galak, J., 2012. The effects of traditional and social earned media on sales: A
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Tufekci, Z. and Wilson, C., 2012. Social media and the decision to participate in political protest:
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Wang, X., Yu, C. and Wei, Y., 2012. Social media peer communication and impacts on purchase
intentions: A consumer socialization framework. Journal of Interactive Marketing. 26(4).
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Online
Is Social Media the Biggest Influencer of Buying Decisions?. 2015. Online. [Available through:
<http://www.socialmediatoday.com/marketing/masroor/2015-05-28/social-media-biggest-
influencer-buying-decisions>. [Accessed on 11th January 2016].
What are consumer insights. 2016. [Online]. Available through:
<http://www.huffingtonpost.com/jure-klepic/what-are-consumer-insight_b_5906624.html?
ir=India&adsSiteOverride=in>. [Accessed on 11th January 2016].
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