[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:
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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
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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.
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