Annotated Bibliography on Social Media and Consumer Behavior

This assignment involves compiling an annotated bibliography on the impact of social media on consumer behavior. It includes a list of relevant references with summaries and analyses of key findings from academic articles and research papers. The sources cover topics such as the effects of social media on brand equity, customer decision-making processes, and consumer perceptions. The bibliography aims to provide insights into the complex relationship between social media and consumer behavior, highlighting the importance of understanding these dynamics for businesses and marketers.

RESEARCH ESSAY
(Effectiveness of digital technologies and internet on influencing buying
behaviour of consumers: how social networking sites impact on
consumer's purchasing behaviour)

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
Buying decision process and factors that influence the mind of consumers..........................2
Effectiveness of internet/ digital technologies in changing mind of customers.....................5
Communication theories.........................................................................................................7
Impact of social media on consumer's buying behaviour.......................................................8
CONCLUSION................................................................................................................................8
REFERENCE ..................................................................................................................................9

INTRODUCTION
Technical revolution has changed the condition of nation to great extent. Use of internet,
digital technologies, social networking sites have given huge success to the business unit. Use of
social media is the revolution for traditional marketing , it supports in developing communication
between marketer and consumers (Armstrong and et.al, 2015). Twitter, Facebook, Instagram
give opportunity to business to interact with consumers more effectively. Through this medium
individual can gather much information about products of the firm and they can get to know
about attractive features that are provided by entities to them. With the assistance of social
media people are now able to share information and get reliable detail easily.
Internet and social media has provided great environment to the population that supports
them in increasing their interaction. It encourages consumers to use web services and get to
know about new offers of organization. The study concentrates on impact of social media on
consumers buying behaviour. There are approx 600 million people in UK those who are using
Facebook daily. 30 million people shared information through social media tools. As per the
record of 2013, total online sale has reached to 1850 billion in that year in the United Kingdom.
Internet and e-commerce have given opportunity to consumers to get their favourite products at
minimum cost. Social media is being used by most of the companies to promote their brand and
attract new consumers towards the brand (Nick Hajli, 2013). Because of rapid growth of online
sales, most of the retailers and big organizations are taking support of this platform.
This research concentrates on impact of internet and social media on consumers buying
pattern and changing their perception. It was established through this study that digital
technologies are associated with the companies profit. It helps in reducing overall cost of entity
thus, firms try to provide products to consumers at reasonable rates. This paper will argue hat
increasing use of social media and internet supports in changing consumers buying behaviour. In
the modern era maximum people use smart phone and smart devices. They get to know about
new offers by using internet on their mobile devices. A study shows that Dell has earned 3
million from using Twitter (Fitore Jashari, 2017). However, important question is required to be
explored for understanding consumer buying behaviour and they purchasing pattern in UK. For
example, does increment in capabilities of individual to get connected with others change their
mind towards particular products and services?
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People communicate with each others and share their experience through social
networking sites. It makes other positive towards the brand and they try to experience products
of the company. Internet is the easiest way to shop products and services. They can order
anything on internet and can get home deliver of goods. It enhances their interest and they
become frequent buyers of particular firm. Internet gives them variety of option and goods at
affordable rates. That helps in changing their perception and behaviour of purchasing anything.
The study will pay attention on factors that influence consumers buying behaviour.
Furthermore, it will emphases on benefit of shopping through online platform for customers and
why their mind gets influenced (Schivinski and Dabrowski, 2016, pp. 189-214). In addition,
argument will be made on effectiveness of social networking sites on changing perception of
customers and building strong relationship with them. Finally, it will argue on how social media
increase connectivity between people and organization and encourage them to shop from here.
MAIN BODY
Buying decision process and factors that influence the mind of consumers
Godey and et.al, (2016) (pp.5833-5841) has developed theory of buying behaviour. This
models states various elements that are involved in decision making process of individuals.
These elements are divided into three set of groups: motive, alternative option and decision
mediator. Motive is considered as specific need of the person to buy particular product and
services. Lower income class or upper income class people like to purchase anything as per their
requirements. They select such material that can fulfil their this requirement. Alternatives are
considered as other brand that provides similar products to customers as per their requirements.
Howard- Sheth theory contributes well in understanding buying decision process of individual, it
is called stage model.
Erkan and Evans, (2016) (pp.47-55) has given five stage model in order to develop
understanding about buying process of consumers. These five stages are: need recognition,
searching information, evaluation of alternative, purchase decision and post purchase evaluation.
Author has stated that buying decision is considered as integral part of buying behaviour.
Consumers first analyses their needs and accordingly they search information that can fulfil their
needs. After that they look at the alternative options from where they can get similar products at
reasonable price and quality (Wolny and Charoensuksai, 2014, pp. 317-326). After that they
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make final decision of purchase. Some times' opinion of others impact on their decision and they
change their mind and move to other brands.
As per the view of Dessart, Veloutsou and Morgan-Thomas, (2015) (pp.28-42) Howard
Seth theory develops understanding about buyers decision making system, it emphases on
variables, hypothetical constructs and exogenous variables. Wolny and Charoensuksai, (2014)
(pp. 317-326) argued that The Marshallian model is the best theory that described about
consumers behaviour and their buying patters. It states that customers do economic calculations
before buying any products from any shop. They look at the utility of the things and after that
they make final decision. Sometimes individual ignore the brand of particular products, if thing
is able to satisfy needs of consumers and it is in its budget.
Kim, Lee and Bonn, (2016) (pp. 96-107) stated that direct marketing through internet is
changing perception of customer to great extent. This medium offers quality products to
consumers at reasonable rates. Thus, customers change their perception and become loyal
towards the brand. It is the medium on which people can share their views about company and its
services. This publicity encourage others as well. If someone like particular firm on its social
networking site then it changing mind of others as well and they think to experience this product.
Through social networking sites companies are trying to understand needs of consumers and try
to offer them products as per their requirements. As per the view of Dehghani and Tumer, (2015)
pp.597-600) psycho graphic variables are considered as one of the most important element that
influence the consumers and change their perception to great extent. It includes perception,
memory, attitude and self conception of particular person towards the goods and services.
Perception can be defined as process of selecting the products out of many options. Marketers try
to expose their goods sot at consumers get to know about it and they change their mind. It pushes
them to buy particular material and change their mind. Companies are giving their
advertisements on social networking sites, interested people click on this advertisement and
change their mind if they get satisfactory products. Fitore Jashari, (2017) .study shows that 23.1
million consumers have discovered new brand which is unable in the local market. On internet
they can get variety of brands and variety of options. These brands strongly influenced them and
they change their mind easily.
Smem Ozer, (2012) argued that price is the main element that influence the mind of
customers to great extent. If companies offer quality products to their valuable customers at
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reasonable prices then they will get attracted towards the brand and will retain with the
organization for longer duration. Internet is the medium through which companies are able to
reduce their expenditures because they do not have to spend much amount in distribution of the
products. In such manner they are able to reduce their operational cost and able to provide
quality products to customers at minimum cost. Whenever individual buy any product from retail
store then retailer add their profit margin in the price that becomes costly for the customers. But
on internet individual can buy goods directly from company without any interferences of
mediator thus, they are able to get cheaper products. This change the mind of customers and they
make purchase decision. As per the view of Fitore Jashari, (2017) service quality impact on the
mind of consumers and it changes their mind. If consumers get exceptional attention then it
encourages people to buy items from particular site. Service quality make the person loyal
towards the brand and they change their perception towards brand. This makes them frequent
buyers of the company.
Ethel Lee, (2013) argued that social factors are considered as one of the most important
component that influence the mind of customers to great extent. It impacts on consumer's buying
behaviour significantly. Society influence buying decision of the person. Reference group,
family, status etc. change the mind of consumers and they encourage or discourage the person to
buy particular thing. These reference groups influence self image of individuals, these group of
people suggest some points that change life style and behaviour of individuals. Family, friends,
work group are the moist common elements that changing buying decision of customers. If any
friend of consumers is giving negative feedback about online shopping then individual will not
shop. Thus, perception of others influence the buying behaviour of the person and they change
their mind.
According to Wolny and Charoensuksai, (2014) (pp. 317-326) personal factors are the
main element that influence the mind of consumers. Age, life cycle, education, income level etc.
are various components that impact on the decision making process of the person. If individual is
in the old age group then person prefer to buy products from retail stores. Whereas young people
like to purchase through online platform. Social networking sites have changed perception of
consumers and they get more information about any company and its products. They buy
products from internet because they think that it is easy for purchasing. Because on this platform
they get variety of options and home delivery. Thus, it saves their time that is why they like to
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buy from internet rather than purchase from retail stores. On other hand income level is another
major element that impact on the mind of customers to great extent. If their person belongs from
low income class group then they think before buying anything. They look at the value of the
item and compare it with their needs. After that they make their mind whether to buy product or
not.
Effectiveness of internet/ digital technologies in changing mind of customers
As per the view of Kim, Lee and Bonn, (2016) (pp.96-107) internet and digital
technologies are changing mind of customers. In the modern era people do not have much time
to spend in purchasing. They are very busy in their daily routine life. Apart from this they have
to give more value whenever they buy any items from retail shop. Digital technologies are
changing mind of customers to great extent. Social networking sites such as Face book, Twitter
have become the essential tool for the marketers and they promote their products on these sites.
People use internet, social media frequently. They look at reviews of particular company and
accordingly they make their mind of purchasing. Research has shown that social sites and digital
technologies have provided new platform to the consumers on which they can communicate with
others easily. In the modern era most of the firms are using social sites in order to coordinate
with their customers. By this way firms get to know needs of consumers and they provide them
goods and services as per their requirements.
Manuel Castellsis the famous scholar who has given article on impact of digital
technologies and communication on movements of society (Castells, 2017). It has brought social
revolution in the society and people have changed their perception and their buying behaviour
has been changed a lot. In the Spain and Middle east social revolution has occurred due to use of
internet. By this medium consumers have become able to coordinate well with each others. It has
given their freer voice and way to make connection with others.
Beck, (2015) stated that everyone is living two life: Vibrant online and boring off line.
This social network has helped in making connection between mass audience. Now through this
platform people can coordinate well with each others and can share their views about any
product or services (Beck, 2015, pp. 125-140). It is the platform that supports in keeping the
person update. In the recent era small kids also know the way of operating LinkedIn and other
smart phones. Companies try to meet with customers in such manner so that it can fulfil their
sophisticated needs and can enhance their satisfaction level to great extent. Schmitz Weiss,
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(2015) is the famous researcher who have given article on how social networking sites are so
effective in changing mind of consumers. It has been stated that earlier to social networking sites
people have to be depended on business for buying their required products and services.
Business gets opened for particular period of time (Schmitz Weiss, 2015, pp. 116-131). Digital
technology have changed the scenario of market now customers do not have to wait a lot to
purchase any items. They can get this facility 24*7 on internet. Internet has given birth to e-
commerce, now people can access these sites from their smart phones as well any time. Apart
from this now consumers can compare products with other brands and can make final decision to
buy particular thing easily. It is time and cost effective as well.
As per the view of Boban, (2017) In the past era companies were taking support of email
and tale- communication sources in order to prompt their brands. But on email they were unable
to get quick response (Boban, 2017, pp. 493). But now social media platforms have given new
opportunity to business to do live chat with customers. In this manner, people can share their
views and can discuss about their needs. This supports entity in providing satisfactory good and
services to consumers. When people get immediate response to their quarries then their mind
gets changed easily and enhances their interest as well. If companies are unable to give quick
response to their potential buyers then it may hurt their expectation and they can become
negative towards the brand as well (Liu and Fraustino, 2014, pp.543-546). This impacts on brand
reputation to great extent. In order to change expectation and enhancing their interest companies
are taking support of various communication tools. Through this communication medium people
can directly coordinate with organization and can get in-depth detail of the product. Internet and
social media have supported the consumers in keeping track of their each purchase. Through
internet people are able to get attractive discounts, alternative options, products at reasonable
prices etc. this has changed mind and perception of consumers. By this way they have become
frequent buyers, over the past few years online business is increasing with rapid speed (DeFleur
and DeFleur, 2016).
Many studies have been done on the effectiveness of internet and digital technology in
changing perception of consumers. Comments and reviews of others change their mind and they
try to experience goods and services of the brand. This encourages them and they feel that it is
the right way to buy anything because they can get home delivery, attractive discount and quality
products at minimum prices as compare to other retail stores.
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Communication theories
There are many communication theories that are applied by different organization in
order to coordinate well with their consumers. As per the view of DeFleur and DeFleur, (2016)
media dependency theory is considered as most effective model of communication. This theory
states that audience depends upon the media in order to get relevant information. These media
sources are able to fulfil needs of the customers. Through this mass media companies make
interaction with audience and create needs and interest of them so that they get motivated to buy
things. According to Klöckner, (2015) cultivation theory states that media gives shape the person
and individual become aware with reality. Many of the people get to know about any product of
company through mediated sources and they get influenced by other's experiences (Klöckner,
2015, pp. 45-68).
Schmitz Weiss, (2015) argued that Stimulus response theory is effective in order to
understand coordination with large number of people. This models state that mass media impact
on the communication, effects of mass media can be: selective exposure and selection perception
and retention ( Schmitz Weiss, 2015, pp. 116-131). Seven Cs communication model supports in
effective interaction between two people. It is the tool that can assist in overcoming from
barriers. It has seven Cs: clarity, credibility, content, context, continuity, capability, channels. If
communicators has clarity in information and content are appropriate then it supports in
changing mind of the person and make them understand with reality. Most of the firms are taking
support of this communication theory in order to change purchasing behaviour of consumers.
They take support of various channels such as Facebook, Twitters to coordinate with mass
audience. It encourages people to purchase from particular site.
Frank Dance has given model of Dance's Helix in which communication process is being
explained. This explains that in the communication process small portion of information is being
circulated from one to another. It gradually develops and expand its boundaries. Companies are
required to take support of correct sources and have to circulate their necessary detail one to
another from easy manner (Beck, 2015, pp. 125-140). So that no confusion gets arisen. If
company shares exp[anded information at the initial level then it may cause difficulty and
confusions as well (Theories of Communication, 2003).
Impact of social media on consumer's buying behaviour
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As per Kumar and Kannan, (2016), in a myriad of campaign any individual with access
to the internet enabled cell phones or smart devices can potentially can get connected and
involved. On the purchasing behaviour of customers positive impact can be there due to use of
social media in the business. The social media sites such as Facebook, twitter and you tube etc
are been used by many company's in order to conduct promotions of the products and services.
As the capability to connect with, organize , engage and mobilize through social media is
shifting so there have been change in the communication, political protest and activism. The
stronger connections in between many people is been created by the social media. According to
Schivinski and Dabrowski, (2016, in order to engage consumers in a social interaction on the
internet social media have provided new opportunities. The social media such as online
communities is been used by consumers in order to generate content and to network with other
users. In the recent years the advancement in the Internet have made new systems available to
the business such as social media. From e-mail to twitter and Facebook the general availability
has given individual the opportunity to make use of social medial without the requirements of
physical meetings. The individuals can easily share and access the information with the rise of
social media and online communities. For social interactions and sharing information the social
networking sites are an effective web technology. As stated by Godey and Singh, (2016), to
many sources of information and experiences today the consumers have access which have been
facilitated by information and recommendation that is made by other customers. Through social
media in marketing this is an essential as customer involvement. For creating brand awareness
the social media is used widely. The reach of audience will be increase due to use of social
media and with the potential and existing customers the relationship will develop. In many social
media will be useful in a business. The impact of consumer purchase decision is been impacted
by the social media. In order to make purchasing decision about 75% of consumer depends on
social media. The research is been done by the consumers about the brand before making any
purchasing decisions. With people the people conduct business and not with the brand or logo.
Based on social media referrals about 70% of consumers are likely to make purchase. The
customer buying decision are being influenced by the companies social media posts that related
to images, offers, events etc. On the social networking profile every blog, post,image ,video
gives a chance to someone to reach and every reaction lead to potential consumer to social site.
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The conversation rates are increased use to this. The punishing decision are being impacted by
the social medial posts of the company.
As per Chung and Koo, (2015), to many new view points opinion and ideas the
consumers are been exposed due to online communities and forums. Through these communities
and online forums the consumer research their solution of their problems. Before making
purchase decisions the consumers go to social media channel. With a wider audience the social
media platform such as Facebook, twitter and Instagram allow the brands to be effectively
interact and engage. In order to look at the information about the products or to check out the
new products the consumer typically follow brands on social media channel.
According to Agnihotri and Krush, (2016), through Facebook when the customer is
browsing without any interaction of purchasing bit when they see live demonstration of the
product or celebrity on social media then in this case on would rationalize its purchasing
decision by emotions .The promotion that is been done about the product on these social media
sites also influence the purchasing decision of the consumer. By seeing the product the customer
gets attracted and based on this decision is been made by them whether to purchase or not while
seeing the promotion on these sites. The ability to customers is been given to review and rate
product .With other users also individual can share their experiences and information easily with
the rise in social network .Through social media the social interaction of costumers is
encouraged through social commerce which is a new stream in e-commerce. In order to become
more attractive globally social media provides opportunities to business.
CONCLUSION
In essence debate relating to effectiveness of digital technologies and internet on
influencing buying behaviour of consumers: how social networking sites impact on consumer's
purchasing behaviour, it is agreed with the view that social media growth have changed scenario
of corporate world. Social networks and diversities have helped organizations in shaping
messages so that needs of consumers can be fulfilled. Internet has become is the easiest way
through which companies have become able to make people aware with their products and
services. Social media such as Facebook, twitter used by entities to prompt their brand. Reviews
of others and attractive offers encourage consumers to purchase from particular site. This impact
on their purchasing behaviour.
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A well established body of research can be concluded as that digital technologies, internet
and social media campaigning are effective tools for understanding requirements of consumers
and providing them services accordingly. Above study can be summarised as if companies take
support of effective communication sources and coordinate with consumers effectively then it
can help in attracting new buyers and making people positive towards the brand. Through
internet and social media individuals can get to know about new offers, discounts and can
compare the products with others brand. This supports in changing their perception. These
facilities they can not get on retail store purchasing. Thus, use of these advance digital
technologies motivates people to get quality products at less time and reasonable prices.
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REFERENCE
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Godey, B. and et.al., 2016. Social media marketing efforts of luxury brands: Influence on brand
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