Impact of Social Media Marketing on Consumer Buying Decision

Impact of social media
marketing on
consumer buying
decision

ABSTRACT
After the introduction of globalisation, internet and social media has gained an advantage
and also promoted E- commerce as a platform where buyers and sellers can meet globally. After
the innovation in social media platforms and development of awareness in customers there has
been a constant debate about various factors that are responsible for controlling the buying
decision of consumers in developing as well as developed countries. Main purpose of this study
is to assess the various social media platforms and their impact on buying decision of customers.
Maintaining and framing effective strategies helps Proctor and Gamble in achieving a
competitive edge over their competitors and rival firms in competitive market. Main aim of this
report is to analyse the impact of social media on buying behaviour of consumer in respect to
Proctor and Gamble.
Furthermore, various opportunities that are available for business concerns in competitive
market have been assessed here. For evaluation, qualitative type of research method has been
considered for data collection an d interpretation. Furthermore, a combination of both primary as
well as secondary data has been collected for evaluating and assessing aim and objectives.
Lastly, it is concluded that employees in P& G need to be trained effectively so that they can
help in growth of a business concern and enhancement of productivity level. By doing so,
company can achieve a competitive edge over other rival firms and increase their customer base
as well.

Table of Contents
ABSTRACT.....................................................................................................................................2
CHAPTER 1: INTRODUCTION....................................................................................................2
1.1 Introduction......................................................................................................................2
1.2 Background of the study...................................................................................................2
1.3 Background of the company.............................................................................................3
1.4 Research problem:............................................................................................................4
1.5 Rationale or worth of the study........................................................................................4
I.6 Research aims and objectives............................................................................................4
1.7 Research Questions..........................................................................................................5
1.8 Significance of the research..............................................................................................5
1.9 Chapter structure..............................................................................................................5
CHAPTER 2- LITERATURE REVIEW.........................................................................................8
2.1 Concept of social media marketing..................................................................................8
2.2 To determine the impact of social media marketing on customer buying decision.......10
2.3 The importance of social media marketing....................................................................12
2.4 The major challenges of social media marketing faced by Procter and Gamble...........14
CHAPTER 3- RESEARCH METHODOLOGY...........................................................................17
3.1 Research design..............................................................................................................17

3.2 Research approach..........................................................................................................18
3.3 Research philosophy.......................................................................................................18
3.4 Data collection method...................................................................................................19
3.5 Sampling method............................................................................................................19
3.6 Ethical issues..................................................................................................................20
3.7 Validity and reliability....................................................................................................21
3.8 Data analysis...................................................................................................................21
3.9 Accessibility issues.........................................................................................................22
3.10 Research strategy..........................................................................................................22
CHAPTER 4: DATA ANALYSIS................................................................................................24
4.1 Data Interpretation on the basis of primary research......................................................25
4.2 Data Interpretation on the basis of secondary research..................................................13
CHAPTER 5: RECOMMENDATION AND CONCLUSION.....................................................16
5.1 Conclusion......................................................................................................................16
5.1 Recommendation............................................................................................................17
REFERENCES..............................................................................................................................20
APPENDIX....................................................................................................................................22

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CHAPTER 1: INTRODUCTION
1.1 Introduction
Social media marketing is a quite vast concept in today's fast growing world. It has
gained pace since the last decade after social media became more popular among people . This
type of marketing discipline is an advantage as it provides ample of space to both consumers and
business entities for maintaining effectiveness while building relationships. Consumer behaviour
on the other hand refers to an art that deals with various activities that are somehow connected to
purchase and sale of goods and services (John Wiley & Sons.Felix, Rauschnabel and Hinsch,
2017). This buying and selling process can be both online as well as offline. This research is
basically undertaken for assessing the impact that social media has put on consumer's buying
decision in case of “ Proctor and Gamble”.
In today's scenario, technology and use of internet has made doing business a quite faster
process. By the use of social media people from all over the world are able to communicate with
each other and share their thoughts and ideas. One key impact of social media and technological
advancement on consumer's buying decision is that it that behaviour of consumers has changed
completely. They have become more aware about the products and services that are being
provided in the market. In addition to this, it can also be said that social media plays a significant
role in attracting customers towards a product or influencing consumer behaviour. It acts as a
main source by which people all over the world have become more aware about the products and
current markets trends or situations. On the other hand, change in consumer behaviour has
resulted in frequent shift in demand and switching of products.
Customer are well aware about different goods. The increase in knowledge has allowed
them to make effective and profitable decisions. By communicating with friends and relatives,
consumer grabs knowledge about different things. Thus, by analysing them, they take proper
decisions. In coming years' technology will play a significant role in providing information about
products and services to people. It will allow them to share it quickly with others. The use of
social media will make them aware about different goods. It will also help in gaining knowledge.
1.2 Background of the study
Social media is the most preferred platform in today's world that creates a sense of
awareness in people. Technological advancement on the other hand refers to developing
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applications and software which helps in providing information to individuals worldwide. One
major example that can be considered here is E- commerce which has come into existence after
introduction of new technological advancements. By this, consumers are able to differentiate
between different products which one is best suitable for them. Social media advancement also
affects the product switching behaviour of customers (Scott, 2015). This research has been based
on Proctor and Gamble which is a business concern in consumable goods industry. As per this
research, it has been assessed that managers of P& G need to identify issues which influence
buying decision of customers and resolve them in an effective manner. This will further help
them in gaining a competitive edge over their rival firms.
Buying behaviour of customers is greatly affected by a significant rise tin their awareness
and knowledge level. Nowadays customers have become well aware about technological
advancements and they communicate with each other through social media platforms for getting
information and data in a more detailed manner. Also, companies provide offers on products in
order to attract them. Moreover, it has been noticed that there are various factors that affect or
influence behaviour of consumers in global market. These factors are personal, social as well as
psychological behaviour of an individual.
1.3 Background of the company
The Procter and Gamble Company (P&G) had initiated as an American multinational
business concern that deals in consumer goods corporation which has its headquarters in
Downtown Cincinnati in Ohio. It was founded in the year 1837 by British American William
Procter and Irish American James Gamble. This business concern specialises in a wide range of
products ( personal health/ consumer health/ personal and hygiene products) These products are
further classified into various segments such as beauty, grooming, health care, personal care etc.
In 2014, P& G recorded a sale of $ 83.1 billions and announced streamlining of a business
concern in the same same year on August 1. As per the words of previous chairman of P&G, Mr.
A.G. Lafley , the future of P& G was expected to be much simpler thereby making it lesser
complex business concern with leading brands that are easier to operate and work with. The
current chairman of Procter and Gamble is Mr. David Taylor, who also believes the same
ideology.
Managers of P&G provide training to their already existing workers soi that they can
comfortably work with new and innovative technology. This helps in fostering growth of the
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company and also leads to customer satisfaction. In context of younger employees, they are
active and quick in adopting new technology which further saves time. It also reduces costs of
production due to which company can earn higher benefits.
1.4 Research problem:
In the present context, advancement and innovation in technology has created a number
of issues. Due to this advancement, business concerns nowadays have to keep themselves
updated with the technology and infuse great amount of money into it. Due to this they are not
able to maintain their production cycle intact which further hampers their productivity. Another
major issue is that customers are getting influenced by other innovative products by the use of
social media. Hence, the business is facing difficulty in retaining their customer base.
1.5 Rationale or worth of the study
As per many studies that are done social media is considered as a major marketing tool
that aims towards enhancement of marketing communication. But even then lesser attention has
been paid to identification of ways in which firms can benefit from this scenario. Hence, to lower
the gap and assess the opportunities available for social media in Canadian region researcher has
decided to conduct a study. Moreover, the main reason due to which this topic was chosen is
personal interest of researcher in social media. A significant reason behind getting this research
conducted is identification of factors which have major impact on consumer behaviour. Also,
this research throws light on the various technological tools and methods that are used by
consumers for raising their knowledge base (Tuten and Solomon, 2017). In addition to this, it
also helps in doing evaluation regarding social media and the impact it has put on consumer
behaviour. Lastly, it will also help in understanding the changing scenario in decision making
process of buyers with the introduction of information technology.
I.6 Research aims and objectives
Research aim: “To assess the impact of social media on consumer buying behaviour. A case
study on Procter and Gamble”
Objectives: The objectives of the study have been stated as under:
 To evaluate the concept of social media marketing.
 To determine the importance of social media marketing.
 To analyse the impact of social media marketing on customer buying decision.
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