[PDF] Impact of Social Media on Consumer Behaviour

HOW SOCIAL MEDIA
INFLUENCES CUSTOMER
PURCHASE

TABLE OF CONTENTS
TITLE..............................................................................................................................................1
TASK 1............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
1.1 Research Background............................................................................................................1
1.2 Factors Contribute to the process of Research project selection...........................................2
1.3 Literature Review..................................................................................................................2
1.4 Research Methodology.........................................................................................................6
1.5 Time Scale.............................................................................................................................8
TASK 2............................................................................................................................................9
2.1 Match the resources efficiently to research question............................................................9
2.2 Questionnaire........................................................................................................................9
2.3 Record and Collate Required Data......................................................................................10
TASK 3..........................................................................................................................................17
3.1 Research Evaluation Techniques........................................................................................17
3.2 Interpret and analyse the result...........................................................................................17
3.3 Recommendation.................................................................................................................20
TASK 4..........................................................................................................................................20
4.1 Covered in PPT...................................................................................................................20
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................22
APPENDIX....................................................................................................................................25
Questionnaire............................................................................................................................25

TITLE
To examine how social media influence's customer purchase. With reference to the case study
of - Tesco Plc.
TASK 1
INTRODUCTION
1.1 Research Background.
Consumer behaviour defined as individual, groups, organisation and all activities
associated with the purchase of product and services (Alalwan, 2018). Therefore, perception,
learning, motivation, belief's and attitude are those factors that can affect the buying behaviour
of the consumer. Social media tools have more considerable influences over the purchasing
decisions of the customers. However, it includes networking such as Facebook, Twitter,
Instagram and Twitter. Consumer behaviour is one of the vital concepts that need to be
understood to have an enhancement in the purchase of commodities (Fotiadis and Stylos, 2017).
The present report is based on business activities of Tesco, the supermarket chain that
deals in multinational groceries, one of the largest multinational retailers of the UK. This entity
has a market share of 28.4%.
Herein, the report will cover the following topics as aims and objectives that will be
framed on the basis of the research topic. Methodologies will be defined to opt suitable methods
so that depth investigation can be carried out. Lastly, the timescale will be given in terms to
provide a deadline for each task to get it done on the stipulated time.
Aim:
“To determine the influence of social media on the customer purchase in retail industry.
A study on Tesco”.
Objectives:
 To comprehend the concept of consumer purchasing behaviour.
 To determine the impact of social media on the customer purchase decisions.
 To identify the relationship between the social media marketing in retail and consumer
purchase.
 To determine the factors associated with the consumer purchase decision.
Research Question:
1

1. What is the concept of consumer purchasing behaviour?
2. How to determine the impact of social media on the customer purchase decisions?
3. What is the relationship between the social media marketing in retail and consumer
purchase?
4. What are the factors associated with the consumer purchase decision?
5.
1.2 Factors Contribute to the process of Research project selection
The existing research topic is based on to identify the influence of social media over
customer purchase. Therefore, Social media plays a crucial role in terms of attracting the
customer towards the product and services. It represents one of the significant roles to boost the
sales of the enterprise, by conducting the depth research on social media activities towards
analysing the behaviour of customers helps to satisfy the demand and wants of customers.
Raising customer demand towards social media is the factor that leads researcher to select this
topic and current issue is the biggest factor. However, social media aids to influence the mindset
of the customer towards changing their attitude and beliefs. Futher personal interest is another
factor to select this topic as this research will help the researcher in terms to gain the
understanding of social media marketing, and this also helps to the customer in order to identify
the reason that social media change its marketing process (Elg and Hultman, 2016). This
research will help to serve as an indicator to focus on potential areas that lead to enhancing
profitability and productivity within the enterprise.
1.3 Literature Review
Concept of consumer purchasing behaviour
According to the Bellini, Cardinali and Grandi, (2017) consumer buying behaviour is
the result of the attitude belief, preferences, intentions and decisions made by the consumer in
the market place before buying a product. Consumer buying behaviour is the interdisciplinary
subject areas which states the changing of attitudes of customers. It is quite difficult of the
organisations to determine the behaviour of consumer as it very frequently. Karimi, S.,
Papamichail and Holland, (2015) said that, the base of consumer behaviour is their analysis of
needs and demands.
As per the Pantano and Priporas, (2016), consumer behaviour is the process of decision
making where consumer select the products and services from variety of multiple of available
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products to the expectations of meeting the needs and demands that maximise the level of
satisfaction by minimising the cost. Roe and Bruwer, (2017) argued that, there are various
factors that determine the decision making of consumer which are preference, budget, age,
group, gender, budget, habits etc.
Impact of social media on the customer purchase decisions.
Ramanathan, Subramanian and Parrott, (2017) stated that, the journey of customers
contained variety of factors that lead to influence the consumer like products and services, target
ads, reviews and the most popular social media. Social media has raise the personal involvement
in the decision making of company regarding the production of goods and services. Social media
is said to be consumer generated media which undertake broad varieties of new sources of
online information. As per the findings from the report that, thee are 1.73 billion people across
the world. In 2017, the social operators at global level was estimated to be 2.55 billion (World-
wide Social Media Users, 2017). However, Grewal, Roggeveen and Nordfält, (2017) argues
that, the positive comments of users intends other to purchase the particular products of the
company is one of the benefit of social media. Social media has raise the engagement of
customers to the company as through social like Facebook, Instagram, twitter etc. they can ask
for products, designing, delivery date and any information regarding the product. Social media
has raise the interaction of customers towards the brand.
According to the Kang and Kim, (2017) social media also raises the concept of branding
as with social media, customers living in remote area of any where where outlet or store of
particular brand is not available so with the social media, consumer can purchase the brand
products from social media. Often customers are shaped by brand awareness. Lindsey-Mullikin
and Borin, (2017) said that, the increasing usage of social media has lead to major shift in the
approach to pursuing the awareness of consumer brand along with a good connection with brand
awareness and and buying intention. Social media has make the customers self directed as they
investigate about the brand, product and services online or through there network before making
the decision for purchase.
Relationship between the social media marketing in retail and consumer purchase.
According to the Pantano and Gandini, (2017) the behaviours of consumer is influences
by the social media of all the groups by applying the most suitable strategies of marketing as
well as to raise the sales of the company. There is being direct relationship between social media
3

marketing in retail and consumer purchase as social media marketing is able to change the
perception, attitudes of customers towards purchase and it has been identified that social media
is one of the largest effect on the customer buying decisions. Thus, the brand image is raised by
the increasing perception of customers towards the products and services of the company. Social
media has also raise the access or range of firm as with this new marketing strategies firm have
universal access. With over 3.19 billion social media users worldwide in 2018, social media has
become an important communication channel for brands (World-wide Social Media Users,
2018).
As per the views of Wu, Quyen and Rivas, (2017) social media has incredible impact of
the mind of consumer that has result in high on the consumer engagement. Consumer
engagement is one of the best advantage for the company as it build the customer loyalty and
customer loyalty is the most valuable asset for the company. Customer engagement also result in
boosting the website traffic as people used to click and visit website. There are about 2.77 billion
social media users in 2019 (Effect On Website Traffic, 2019). In branding of products social
media has plays profound role as it has increased the awareness of customers as well as it has
also keep the customer with daily updates which is another way to keep the customer in touch.
With the increasing preference of social media, now customers are expecting from all the brands
or company to have online presence so that they can do shopping from anywhere instead of
searching for stores.
4

Factors associated with the consumer purchase decision
According to the Lo, Lin and Hsu, (2016) the behaviour of consumer is widely
categorized between decision and actions that influence the behaviour of customers. It aids in
underlying the factors that deal wit the customers attitudes and priorities. Social media is one of
the medium that companies inn retail industry is regularly finding new ways to reach customers.
As per the views of Cho and Lee, (2017) printing advertising and television is said to be the
primary elements of marketing strategies but time has changed as now social media has become
fundamental components of marketing strategies of the company. There are some critical factors
which are associated with the purchasing decision. Economic factor is the primary one that
influence the purchasing decision as it states that either customer can able to buy the product or
services or not. It is simple that people cannot able to purchase when they cannot able to afford
it.
5
Illustration 1: Effect On Website Traffic
(Source: Effect On Website Traffic. 2019)

Badgaiyan and Verma, (2015) said that, group influence is the factor that is associated
with the purchase decision as group can be family members, classmates, finds, peers, relatives.
For example, fast food is preferred by mass people over green vegetables. Baubonienė and
Gulevičiūtė, (2015) argued that, marketing campaign is said to be one of the factors that
influences the purchasing decision of customers. It can be said that, marketing campaign is
known to bring a great shift in market shares of retail industry by influencing the purchase
decision of customers. Marketing campaign keep the customers aware about the products and
services. On the contrary, social media is also one of the factor that enable customer to purchase
the particulars goods and services. The likes and dislikes of users on the post also influence's
customer to purchase that particular goods.
1.4 Project Specification and Research Methodology
In this research project there are four task in which in Task one there is proposal where
researcher will outline the research report such as what is the methods is to be selected, aims and
objectives, time scale etc. In task 2, researcher have panned the resources used for the research
and also collect the data and prepare themes accordingly. In last, task three, scholar has
presented outcomes of data collection.
Introduction
It is defined as a systematic plan that aids to conduct the research activities. It is effective
term that aids to opt the suitable method to gather the detailed information (Daniel, Kumar, and
Omar, 2018). Therefore, research methodologies defined in the following manner as -
Research Philosophy
This is a procedure that defined as belief with the help of which data about the
phenomenon can be collected, analysed and used. This is one of the vast topics that aids to
discuss the topic in great details (Cazeaux, 2017). Therefore, research philosophies categorised
as ontology, epistemology etc. Hence, epistemology classified into components as positivism,
realism and Interpretivism. However, research will adopt interpretive philosophy so that better
conclusion can be drawn.
Research Approach
This is defined as plan and procedure that consisting of the broad assumption to the
detailed method of data collection, analysis and interpretation. Therefore, the approaches to the
6

researcher classified as inductive, deductive and Abductive etc. Hence, research will use the
inductive approach so that it will help to contribute to the emergence of new theory. This is the
theory that aids to generalise the data from specific to general (Teherani and et.al., 2015).
Research Design
It is defined as a framework that aids to combine several techniques chosen by the
researcher to analyse various components relates to the study. This relates to framing the overall
strategy that helps to decide to integrate differed element of study inconsistent and formal
manner (Abdulkadiroğlu and et.al., 2017). Hence, research design classified as quasi-
experimental, descriptive, correlation, and experimental. In this, the researcher will have the use
of descriptive analysis so that extent data can be gathered over the topic of research.
Sampling
This termed out as statistical analysis, and there is a number of predetermined
observations that can be taken from a larger group of population. Sampling can be divided into
two categorises which are probabilistic and non-probabilistic sampling Hence, research will
have the use of a probabilistic sampling method in terms to carry out the process of research
systematically (Yang and et.al., 2018). Therefore, the sampling size will be taken as 20
respondents as consumers by using random sampling technique.
Data collection
This is defined as a process that leads to gathered and measured information on the
variables on interest. It is one of the systematic methods that enable to get complete and accurate
data from a variety of sources. Hence, data can be collected with the help of primary and
secondary method. Primary methods are which where data is collected for the first time and it is
collected by the researcher own efforts. Whereas, secondary methods are which where data is
collected from other sources (Yeakley and et.al., 2016.). To determine the implication of social
media over the customer purchasing behaviour, the researcher will have use primary methods as
researcher will conduct survey and gather the data via questionnaire.
Data analysis
It is one of the effective methods that process as to analyse, cleansing, transforming and
modelling the data in terms to deal with the goal of discovering information. It is a procedure
that is classified into categories as qualitative and quantitative analysis. In this, the researcher
7

will use qualitative techniques by adopting thematic analysis. This will be helpful in terms to
undertake reliable and authentic information (Mihas, 2019).
1.5 Time Scale
The time scale of research aids to define the time limit in which activities relate with
research has to be conducted. Therefore, it defines the schedule of activities that provides the
stipulated deadline so that all task can be accomplished. Thus, it's defined as:
Activities
Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Week
7
Week
8
Week
9
Week
10
Week
11
Week
12
Selection of topic
Framing aim and
objectives
Conducting
literature review
Selection of
research methods
Completion of
research proposal
Conducting
literature review
Selection of
research methods
Collection and
Analysis of Data
Drawing
conclusion and
framing
recommendations
Final submission
8

TASK 2
2.1 Match the resources efficiently to research question
Resources are the materials which are required for the competing the task or activity. It is
very important to have proper allocation of resources before starting the research activities.
Resources required for competing the research are human and financial resources. Human
resources includes staff members such as risk manager, assistant data collector and some other
person On the other hand, financial resources includes the money to buy the research materials
for the study such as stationery items, laptop, USB, travelling cost etc. Further, it also required
fund for paying the charges of several websites which are locked and need access from that. In
addition to this, the relationship between research questions and hypothesis is the both are
developed before the study starts.
2.2 Questionnaire
QUESTIONNAIRE
Name:
Age:
Gender:
1. Are you aware of the social media?
 Yes
 No
 May be
2. Did you shop from online networking site?
 Yes
 No
 Sometimes
3. Do you agree that social media is one of the best channel for shopping?
 Highly Agree
 Agree
 Neither Agree nor Disagree
 Highly Disagree
 Disagree
9

4. What is the impact of social media marketing on business?
 Increase brand awareness
 Boost Website Traffic
 Generate leads and sales
5. What are the factors that influence the customer purchase?
 Economic
 Marketing Campaign
 Likes and Dislikes on post
 Group Influence's
 Others
6. Did you think social media impact on the customer purchase decisions?
 Yes
 No
 May be
7. How often you shop through social media?
 On sale and offers
 Monthly
 Occasion
 Most Probably
8. What are some social media network you mostly prefer?
 Facebook
 Instagram
 Twitter
2.3 Record and Collate Required Data.
Theme 1: Maximum customers are aware of social media.
PARTICULARS FREQUENCY
Yes 12
No 6
May be 2
10

Theme 2: Maximum customers shop from online networking site.
PARTICULARS FREQUENCY
Yes 11
No 5
Sometimes 4
11
Yes No May be
0
2
4
6
8
10
12
CUSTOMERS

Theme 3: Social media is one of the best channel for shopping.
PARTICULARS FREQUENCY
Highly Agree 7
Agree 5
Neither Agree nor Disagree 1
Highly Disagree 3
Disagree 4
12
Yes No Sometimes
0
2
4
6
8
10
12
CUSTOMERS

Theme 4: Impact of social media marketing on business is that it raises brand awareness.
PARTICULARS FREQUENCY
Increase brand awareness 9
Boost Website Traffic 4
Generate leads and sales 7
13
Highly Agree
Agree
Neither Agree nor Disagree
Highly Disagree
Disagree

Theme 5: Likes and Dislikes on post is the factors that influence the customer purchase.
PARTICULARS FREQUENCY
Economic 5
Marketing Campaign 4
Likes and Dislikes on post 7
Group Influence's 3
Others 1
14
Increase brand awareness
Boost Website Traffic
Generate leads and sales

Theme 6: Social media impact on the customer purchase decisions?
PARTICULARS FREQUENCY
Yes 10
No 6
May be 4
15
Economic
Marketing Campaign
Likes and Dislikes on post
Group Influence's
Others

Theme 7: Customers shop through social media on sales and offers.
PARTICULARS FREQUENCY
On sale and offers 7
Monthly 3
On Occasion 5
Most Probably 5
16
Yes No May be
0
1
2
3
4
5
6
7
8
9
10
CUSTOMERS

Theme 8:Facebook social media network that customer mostly prefer.
PARTICULARS FREQUENCY
Facebook 10
Instagram 6
Twitter 4
17
On sale and offers
Monthly
On Occasion
Most Probably

TASK 3
3.1 Research Evaluation Techniques
Summative and Formative are two research evaluation techniques which are used in the
research. Summative evaluation means the assessment of participants where the focus in on the
result of program. On the other hand, formative assessment for diagnostic testing. In this
present research study, researcher have used summative assessment as the main focus is on
survey.
3.2 Interpret and analyse the result.
Theme 1 Interpretation:
The above graphical and tabular presentation presented for the outcomes of 20
responders and it has been identified that maximum customers are aware of social media as said
by 12 responders. They said that they are using all social networking sites and said it has become
one of the important part of life. On the other side, there were 6 who were not aware of social
media as they said they only heard about it but never use before. Lastly, rest of 2 were confused
either they are aware or not.
Thus, it can be said that, maximum customers were aware of social media and it can be
supported the view point of author as there are 2.55 billion people are use social media in 2017.
so all responders are eligible to answer the question to the research.
18
Facebook Instagram Twitter
0
1
2
3
4
5
6
7
8
9
10
CUSTOMERS

Theme 2 Interpretation:
The above graphical and tabular presentation presented for the outcomes of 20
responders and it has been identified that maximum customers shop from online networking site
as stated by 11 responders. They said that, online shopping is one of the most convenient
method. They like to shop from online because of frequent offers, sale that attract them towards
the products. On the contrary, there were 5 who said that they do not like to shop online because
they do not have experience of shopping and they also feel risk of frauds in payment, material of
clothing during online shopping. Rest of 4 said that they do but not frequently, they used to
shop sometimes like when end sale, festival sale etc.
Theme 3 Interpretation:
The above graphical and tabular presentation presented for the outcomes of 20
responders and it has been identified that social media is one of the best channel for shopping as
7 were highly agreed. They said that social media allows people to share their views and ideas
regarding the products and services and they also said that social media has becomes one of
trustworthy medium for communicating and interacting with retailers. 5 customers were also
agreed that social media is best for shopping as they can see the reviews of people on the
products that enable them to take an idea about the product. It can be supported by the view
point of author that, Social media has raise the engagement of customers with the company as
through social sites like Facebook, Instagram, twitter etc. On the contrary, there were 7 (3+4)
who were against of this as they said social media is not the best channel for shopping as they
said that they cannot get idea of size and quality of clothes and mode of payment is also very
confusing. They said that they like to prefer shopping on the stores. Only single responder were
not having specific answer as they were confused. Thus, it can be said that, Tesco can also
expand the business in social media platform as from the outcomes it has been proved that social
media is one the best channel of shopping for customers.
Theme 4 Interpretation:
The above graphical and tabular presentation presented for the outcomes of 20
responders and it has been identified that impact of social media marketing on business is that it
raises brand awareness as said by 9. They said social media offer many opportunities to the
companies so that they can come out with their creativity in crafting the social media promotion.
The views from literature supported that, online platform is the best way to keep the audience or
19

customer engage with the company. 4 customer stated that social media marketing boost website
traffic as people click and visit the website. The views in secondary information supported that,
in 2019 there were 2.77 billion users of social media. Whereas, there were 7 respondents said
that it generates leads and sales for the company. Thus, it can be said that, Tesco should improve
the presence of social media platform as it has raises the brand awareness, boost traffic and
generate leads and sales.
Theme 5 Interpretation:
The above graphical and tabular presentation presented for the outcomes of 20
responders and it has been identified that likes and dislikes on the post is the factor that
influence the customer purchase as 7 were highly supporting. They said that before shopping
they used to check the reviews which they feel as they feel convenient to shop which is not
available on offline stores as store manager on praise thee products. It can be supported by the
view point of author that, likes and dislikes of users on the post also influence's customer to
purchase that particular goods. 5 responders were there who feel that economic factors is the
fundamental one that influence the customer purchase they said money is very important factor
to have to purchase any thing. The views in literature supported that people can buy only when
they can afford. There 4 who said that, marketing campaign is also the factor that influence the
customer decision. They said marketing campaign brings keep the customer attracted and
updated from the company. There were 3 more who said that group influence's is the major
factors that influence's the customer purchase decisions as if people around us use same products
than they get influence's with that product.
Theme 6 Interpretation:
The above graphical and tabular presentation presented for the outcomes of 20
responders and it has been identified that social media impact on customer purchasing decisions.
as said by 10 responders. They said that social media enable company to raise the interaction
between customers and retailer that helps in building customer loyalty. It can be supported by
the view point of scholar that, social media marketing in retail social media marketing is able to
change the perception, attitudes of customers towards the company. On the other side, there
were 6 who were not agreed as they said social media do not impact on the customer purchase.
Theme 7 Interpretation:
20

The above graphical and tabular presentation presented for the outcomes of 20 customers
and it has been identified that customer mostly shop through social media on sales and offers as
said by 7 customers. They said that online shopping offers so many sales for customers that
attract them to purchase from online shopping sites. Whereas, there were 3 who said that, they
shop through social media in month and 5 said they used to make purchase on occasion. 5
customers were there who said that customers used to shop most probably and randomly. Thus,
it can be said that Tesco can expand there online platform and offer more sales offers as
customers uses to shop most probably.
Theme 8 Interpretation:
The above graphical and tabular presentation presented for the outcomes of 20 customers
and it has been identified that social media network that majorly prefer by the customers is
Facebook. They said that they used to check the shopping offers on Facebook. It can be
supported by the literature views that Facebook users are more as compare to other social
networking sites. Other said that they used to shop from Instagram and twitter. Thus it can be
said that, Tesco should post more on Facebook to attract the customers.
3.3 Recommendation
From the above conducting primary research, researcher have identified some of the
recommendations for Tesco which are as follows-
 Tesco should expand there online platform and work more on it because customers are
attracting towards the online shopping (Zhang and et.al., 2017).
 It can be recommended from the above research that Tesco should run social media
contest to attract new customers as this strategy is best to increase the online base of
customers.
 Tesco should make further more improvement in the website of the company so that
customer get attracted from it (Duan and et.al., 2016).
TASK 4
4.1 Covered in PPT
CONCLUSION
From the above research it can be concluded that social media influence's the customers
purchasing decision. Social media influences the shopping behaviour of all age groups, and with
21

the help of adopting suitable marketing strategies, it can be possible to boost sales. Further, it
has also been identified that, it helps to control the buying behaviour of customers. Marketing of
the commodities leads to satisfying the demand and wants of customers, and this also aids to
achieve the purpose of the enterprise. Social media is a very attractive tool as it leads to building
the brand attitude that can affect the buying behaviour.
22

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APPENDIX
Questionnaire
QUESTIONNAIRE
Name:
Age:
Gender:
1. Are you aware of the social media?
 Yes
 No
 May be
2. Did you shop from online networking site?
 Yes
 No
 Sometimes
3. Do you agree that social media is one of the best channel for shopping?
 Highly Agree
 Agree
 Neither Agree nor Disagree
 Highly Disagree
 Disagree
4. What is the impact of social media marketing on business?
 Increase brand awareness
 Boost Website Traffic
 Generate leads and sales
5. What are the factors that influence the customer purchase?
 Economic
 Marketing Campaign
 Likes and Dislikes on post
 Group Influence's
 Others
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