Impacts of social media on customer behaviour

Impacts of social
media on
customer
behaviour

Table of Contents
INTRODUCTION ..........................................................................................................................3
Theoretical background ..................................................................................................................4
Literature Review .......................................................................................................................4
Them 1: Impact of social media on decision making of the consumer ......................................4
Theme 2: Ways in which social media influences consumer behaviour....................................5
Theme 3: Strategies for improving consumer experience through social media ......................6
Theme 4: Challenges faced by business organisations in effective utilisation of social media .6
Justification and contextualisation...................................................................................................7
Methodology ...................................................................................................................................9
Asses and ethics ............................................................................................................................11
Limitations ....................................................................................................................................11
Bibliography .................................................................................................................................12

Title: An investigation into the influence of social media on consumer behaviour in the
retail industry. A case study on Sainabury's.
INTRODUCTION
Social media has huge impact on consumer lifestyle and social media trends dictate
success or failure of business endeavours in retail industry. It is vital to understand the influence
of social media on consumer behaviour in order to gain profound information about consumer
habits. In addition to this, information about the influence of consumer behaviour on social
media can be used for constructing effective promotional strategy and enhance consumer
experience. Sainsbury's is a UK based organisation and second largest member of the British
retail industry. The firm faces the issue of social media influencing consumer behaviour which
impacts their sales and consumer interaction.
54% of social media users brows social media to research products before buying the
product. It is essential for business organisations in the retail industry to gain an understanding
about the influence of social media on consumer behaviour and decision making in order to
create successful business strategies. Every large business firm in the retail industry faces the
issue of social media dictating sales of their products and consumers interaction. Social media
impacts consumer behaviour which directly impacts various business operations. Marketing is
the main business operation which is affected by this issue. Business organisations in the retail
industry have changed their marketing practices due to rising influence of social media on
consumers.
Research Aim: To determine the impact of social media on consumer behaviour in the
retail industry.
Research Objective
 To understand the concept and importance of social media in context of consumer
behaviour.
 To identify the impact of social media on consumer behaviour.
 To examine social media strategies used by Sainsbury's to increase positive consumer
experience.

 To determine the challenges faced by Sainsbury's in using social media to influence
consumer experience.
Research questions
 What is concept and importance of social media in context of consumer behaviour?
 How is social media impacting consumer behaviour in retail industry?
 What are the social media strategies used by Sainsbury's which increase positive
consumer experience?
 What the challenges faced by Sainsbury's in using social media to influence consumer
experience?
Theoretical background
Literature Review
Them 1: Impact of social media on decision making of the consumer
According to Barker (2017) Social media was initially used to connect with family and
friends but has evolved to become an impactful tool for various business organisations. In the
current digital world it is essential for business organisations to have strong social media
presence in order to influence consumers behaviour for the profitability of the company. 74 % of
the consumers make their purchase related decisions on the basis of social media. Influencers
which defined as famous social media personalities impact consumer decision making process.
Consumers make products related decision on the basis of reviews from their preferred social
media influencer. Consumer behaviour examines how emotions, attitude and preferences affect
buying behaviour of consumers. Product referrals from friends and family play a significant role
in influencing consumer behaviour (How Social Media Is Influencing Purchase Decisions,
2017). Business organisations which encourage consumers to participate in social media
decisions gain a better understanding of consumer behaviour and how consumers utilise social
media to search for and share the experience with product of the company. Social media can be
used as a tool to understand purchase related consumer decisions and affect such decisions for
the growth and profitability of the company. Social media trends affect consumer behaviour and
results in increased sale of a certain product or services. Business organisations which are able to
create social media trends can influence consumer behaviour and increase the sale of their
products. Corporations need to understand the role of social media in shaping purchase related