How Social Media Affect Customers' Behaviour - Postgraduate Major Project on Marketing

Running head: POSTGRADUATE MAJOR PROJECT ON MARKETING
Postgraduate Major Project on Marketing
Name of the Student
Name of the University
Author Note

POSTGRADUATE MAJOR PROJECT ON MARKETING1
Abstract
The use of social media is something that is increasing with every passing day. More
and more people are taking recourse to the use of the internet in order to entertain themselves,
and also to participate in business activities of many different kinds. Social media is popular
among people of all ages largely because of the fact that it is so easy to access and because it
is also cost effective, not requiring people to pay any money to use it. Social media enables
people to stay in touch with one another over long distances. It enables people to partake in
various types of cultural and other activities online, to stay connected and to even promote a
business if they own a business or are part of one. In fact, business promotion is something
that can be carried out in a highly effective manner if social media is used for this purpose, as
knowledge dissemination is capable of being implemented very quickly and easily through
social media. This project undertakes an investigation as to whether or not social media is
something that influences consumer behaviour. Chapter 1 of the dissertation introduces the
topic of the research and points out the research aims and objectives as well as the research
questions. Chapter 2 engages in an in-depth literature review on the subject of social media
and consumer behaviour following which the gaps in the literature review are also addressed.
The third chapter outlines the research methods that have been used in order to do the
research along with the ethical factors that have been taken into consideration when doing so
as well as the limitations for the same. The fourth chapter interprets the data that has been
collected for investigation, after which it is analysed in a fair amount of detail. The fifth and
final chapter concludes on the topic of the research and also points out a number of effective
ways by which social media influence on consumer behaviour can be well enhanced or
improved upon.

POSTGRADUATE MAJOR PROJECT ON MARKETING2
Table of Contents
CHAPTER 1: INTRODUCTION..............................................................................................3
1.0 Introduction.....................................................................................................................3
1.1 Background to the study...................................................................................................3
1.2 Problem Statement...........................................................................................................5
1.3 Research Aim and Objectives..........................................................................................5
1.4 Research Questions..........................................................................................................6
1.5 Research Significance......................................................................................................6
1.6 Summary..........................................................................................................................6
Gaps in the Literature Review/Rationale for the Research..................................................24
Results......................................................................................................................................32
Descriptive...........................................................................................................................32
Inferential Statistics..............................................................................................................37
Correlation Analysis.........................................................................................................37
Regression Analysis.........................................................................................................39
General Analysis..................................................................................................................40
Chapter 5 – Conclusion and Recommendations......................................................................43
5.1. Overview.......................................................................................................................43
5.2. Recommendations.........................................................................................................45

POSTGRADUATE MAJOR PROJECT ON MARKETING3

POSTGRADUATE MAJOR PROJECT ON MARKETING4
Topic- How Social Media affect customers’ behaviour
CHAPTER 1: INTRODUCTION
1.0 Introduction
This research investigates how social media affect customers’ behaviour. It is learnt that
the advent of social media has opened an innovative avenue of marketing for corporations. It
has been learnt that conventional ‘word-of mouth’ publicity has been replaced by word of
web because customers are increasingly referring to social media sites before making an
appropriate purchase greatly influencing purchasing behaviour. Although most organizations
presently have an official website which hold complete information about their products,
customers conventionally engage with an organization after reading news and feedback from
existing consumers. Social media has the potential to reach and focus on a large market,
which means due to extending coverage, marketers are able to target and influence the
consumers living remote location. Purpose of the study is to investigate how social media
affects consumer behaviour. This chapter of the dissertation provides a comprehensive
background about consumer behaviour and social media. On the basis of background,
research questions and objectives have been developed in the following.
1.1 Background to the study
It is certain that before buying a product, every consumers wish to ensure that the
product is the best in its class and offers good value for money. According to Goh, Heng and
Lin (2013), advertisements do not always give a fair idea, as every organization claims the
supremacy of their products. Hence, social media plays a great role in defining customers’
behaviour and people who have used the product can describe their experience along with its
strength and weaknesses. In this context, Laroche, Habibi and Richard (2013) commented
that people are more likely to trust those who tend to give a more significant account of a

POSTGRADUATE MAJOR PROJECT ON MARKETING5
product instead of celebrity who is paid to promote or endorse the product. It has been
identified that social media allows people across the globe. It has been identified that social
media allows people across the globe to form a community of customers, giving them the
power to harm and herald the brand. It has been learnt that several sector bigwigs have
performed studies and surveys to know the effect of social media on customers’ behaviour
and it has been discovered that customers mostly like to develop an interactive relationship
with the brands, thereby, they can easily pass on feedback, suggestions and all sort of
complaints (Chu, and Kim 2011). According to the nature of social media, anything positive
or negative which is being said about the nature of product or company is easily accessible to
the global community of customers and this essentially means that the business and the
marketing strategy can be harmed in a matter of hours. it is certain that social media has
developed and opened up new opportunities, both for the business and customers to
communicate with each other on a real time basis (Doh, and Hwang 2009).
Therefore, it can be added that responsibility remains on corporate house to envisage
a particular strategy and thereby they could make their presence observed on social media
networking scene. It has been identified that some organizations often take a head start but to
gain a desired success, it is highly important that their site is easily accessible (Sigala,
Christou, and Gretzel 2012). There is a plenty of information on social media site and if the
service is not up to mark, it is obvious to public views. It is necessary that business has
formalized social media presence along with a designated workforce to make sure that it
function smoothly. Jahn and Kunz (2012) mentioned that this not only helps to build
customer relationship but also in launching the brand to key consumers. Several
organizations for joining the bandwagon, spread themselves too thin by generating profiles
on innumerable websites which certainly creates disconnection with the consumer and this
remains a significant business concern. As the presence of social media is rapidly increasing,

POSTGRADUATE MAJOR PROJECT ON MARKETING6
customers’ behaviour is not influenced by large organizations but due to technology
advances, small and medium size organizations can target consumers sitting at a remote
location. Likewise, there are several other factors that come into discussion when it comes to
social media and its influence on consumers’ behaviour.
1.2 Problem Statement
It has been identified that technology advances enabled both small and medium size
organizations to target and influence consumers of large market. Consumers’ behaviour can
be influenced by brands that are in social media. Social media is large platforms which hold
millions of users on a regular basis. Thus, it is the best way and the platform of targeting
consumers, controlling and influencing their behaviour when it comes to making a purchase
decision. As the business is largely dependent on the digital platform, marketers are in the
need of a suitable marketing strategy that effectively control consumers’ behaviour (Ashley
and Tuten 2015). However, it is worth stating that digital market environment such as social
media has been dynamic in nature, existing strategy of influencing consumers, especially
their purchase behaviour is difficult to consider. Even though many studies have been
performed on social media and its impact but hardly a study has been performed to learn
extent to which social media influences consumers behaviour.
1.3 Research Aim and Objectives
Research Aim
Aim of the study is to investigate the potential impact of social media on consumers’
behaviour. Study secondarily aims to identify the extent to which consumers are influenced
by social media activities of the brands. Following are the key objectives to meet the stated
research aim
 To analyse the concept and application of social media in business

POSTGRADUATE MAJOR PROJECT ON MARKETING7
 To evaluate the factors affecting consumers behaviour
 To investigate the impact of social media on consumers behaviour
1.4 Research Questions
 What are the factors that influence consumers’ behaviour in today digital market
environment?
 How does social media impact consumers’ behaviour today?
1.5 Research Significance
It is certain that today’s business environment is rapidly changing due to technology
advances and marketers are in the rush of developing a suitable business strategy which
would help business not to lose their existing position in the market. Social media is an
emerging concept of business today as numerous business irrespective of their size and type
are getting into the platform. Certainly, social media platform is crowded by both audiences
and businesses. So, this study would help to know how this crowd is managed and how
businesses are being profitable by influencing consumers’ behaviour. Outcome of the study
helps to generate new business ideas for today’s dynamic business environment. Marketers
can use the theories developed in the study. Moreover, the study can be used as the
supporting material for future research work.
1.6 Summary
This chapter of the dissertation presents a preliminary ideas about the context which has been
investigated further in the study. Social media platform has been a hot topic of discussion
both in business and academic research. Businesses are gaining new exposure due to the
growing presence of social media. Considering this growing presence of digital media, this