Social Media and E-commerce Analysis

This assignment involves a comprehensive analysis of the relationship between social media and e-commerce. It includes an examination of various sources, such as academic articles, research papers, and online resources, to understand the advantages and disadvantages of e-commerce, the impact of social media on consumer behavior, and the benefits of e-commerce for retailers and customers. The assignment also explores the effects of social media networks on e-commerce and the Amazon effect on consumer expectations and buying decisions.

Research Proposal

Table of Contents
Title: THE EFFECTS OF SOCIAL NETWORKS ON E-COMMERCE.......................................1
1.0 INTRODUCTION.....................................................................................................................1
1.1 Identifying specific researchable topic area:....................................................................1
1.2 Importance of problem.....................................................................................................2
1.3 Aim of research project....................................................................................................2
2.0 Research Objectives and research questions..............................................................................3
Research Objectives ..............................................................................................................3
Research Questions................................................................................................................3
3.0 Literature Review.......................................................................................................................3
4.0 Research Methodology..............................................................................................................7
4.1 Research Design, research approach and research type...................................................7
4.2 Rationale...........................................................................................................................8
5.0 Access to Data and Research Ethics..........................................................................................9
6.0 Limitations.................................................................................................................................9
REFERENCES..............................................................................................................................10

Title: THE EFFECTS OF SOCIAL NETWORKS ON E-COMMERCE
1.0 INTRODUCTION
E- commerce refers to the activity in which buying and selling of products is done
through online sources (Hajli, 2014). Social networking sites are considered as online platform
where people, individual or businesses could share about their experience, thoughts or view.
Now a days, business organisations are using social sites to communicate to its customers in
order to understand their buying behaviour. In addition to this, it can be said that social networks
also provides opportunities to business organisation belonging to e-commerce industry. These
opportunities are in the form of quick access to customers, it also provides additional business
opportunity to companies as they get other business offer from social network sites only. In
addition to this, social network also allow company to interact with its customers as a result this
interaction with customers that provides feedback to company. It directly contributes in
developing their existing products and services according to customers requirements. The present
research report is based Amazon, which is an American multinational e-commerce company
which is one of the biggest online retailer across the overall world. The company was founded
by Jeff Bezos in the year 1994 on July 5 which is headquartered in Washington, U.S. It provide
various product and services at global level such as video games, electronics, amazon studios,
furniture, kindle e-readers and many more over its e-commerce websites.
It has been analysed that this company is facing some of the issues related social
network which impacts negatively on its sales. In this regard, top management team of this
company have planned to conduct an effective research through which their profits can be
enhanced.
1.1 Identifying specific researchable topic area:
Social media impact largely on e-commerce. It has it’s metaphorical hand in different
stages of e-commerce. Initiating from how a consumer interacts with brand, to post-checkout, to
checkout stage, social media is a driving variable. Amazon is facing decline in sales due to
negative impact of advertisements through social networking sites. Therefore, the main aim of
choosing this research topic is to enhancing understanding of company on social networking
sites and how it can be used by Amazon for regaining its brand name back. This study further
helps in analysing the impact of social networks on e-commerce. In addition to this, it can be
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said that impact of social network on e-commerce is directly interrelated with customers, their
shopping behaviour and demand pattern.
1.2 Importance of problem
The chosen topic is highly important as it will reflect actual impact of social networking
on business activities. It has been analysed that around $8.3 billion businesses are using social
media as its advertisement tool. Also, approximately 78 % are using social site like Twitter for
complaining about product on hourly bases (122 Amazing Social Media Statistics and Facts,
2019). It can be said that this affected approximately 120 businesses worldwide. With the
reference to the present research, it can be said that the chosen study will help Amazon in
improving its brand image among customers. Along with this, negative publicity of company
through social networking sites will impact negatively on sales of company. At further, it can be
said that this research will provide deep description of about social networks and how
importantly it has affected work of companies belonging to retail industry.
With reference to academic zone, it can be said that this research will help develop
knowledge of learners as their professional skills have been developed in effective manner.
Along with this, leaner can enhance their knowledge and skills on a particular topic. At last, from
the scholar point of view, this research will help them in increasing their knowledge about all the
operating activities of Amazon. As a result, this research project will help the scholar while
working within the same industry in near future. Business organisations faces some negative
impact while they post something on social media and people interpret it in a wrong way.
Various impacts can be face by an organisation in this relation. Some of the reason can company
start reducing its profit margin as sales of the company decline rapidly. Sales volume of the
company reduces which affects the overall brand image (Sigala, 2017). Also, buying behaviour
of consumers mainly depends upon the brand image or goodwill of the company. In reference to
this if a company loose its brand image which automatically reduces its profit margin. Investors
and shareholders start withdrawing their money from company. As a result, company reduces its
overall capital.
1.3 Aim of research project
“To evaluate the effects of social networks on e- commerce in regard to consumer
buying behaviour and demand patterns in UK.” A case study on Amazon.
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2.0 Research Objectives and research questions
Research Objectives
 To understand concept of social media and its impact upon e-commerce business.
 To analyse benefits of e-commerce websites in fulfilling demand of customers.
 To analyse the influence of social media on e-commerce buying behaviour of Amazon's
customer.
 To determine the effect of e-commerce over demand pattern of customers of Amazon.
Research Questions
 What is the concept of social media and its impact upon e-commerce business?
 What are the benefits of e-commerce websites in fulfilling demand of customers?
 What is the influence of social media on e-commerce buying behaviour of Amazon's
customer?
 How e-commerce affect demand pattern of customers of Amazon?
3.0 Literature Review
To understand concept of social media and its impact upon e-commerce business.
According to Milsont. D., (2017), social media in electronic commerce is highly
attributed to proliferation of mobile devices and emergence of internet. It has potential to impact
demand patterns of particular product and determining decisions of consumer. The power of
social networks in influencing customer's decision is pivotal in realization of firm's success in the
field (The Rise Of Social Media And Its Unprecedented Impact On E-Commerce, 2017). Social
networks highly contribute in increasing sales and profits of e-commerce businesses. Along with
this, it can be social networks also helps business organisation in communicating to their
customers at regular basis in smooth manner. This communication can be related to new product,
feedback, regular interaction, discussion of required changes that company is required to adopt.
As per the thoughts presented in the article given by Value Walk, it has been analysed
that their maximum number of people are using social networking sites as it helps them in
communicating to huge variety of people at single platform (Hajli and et. al., 2017). It has been
evaluated that around 1.2 billion users are actively using Facebook, near about 70 million uses
Pinterest and approximately 200 million of users uses Twitter actively. From this provided data,
it can be said if e-commerce industry uses social networking site then they will be better
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opportunity to grab attention of maximum number of customers. At further, it has been analysed
that after approaching social networks companies belonging to e-commerce industry are
generating around $2.4 million (The impact of social media on e-commerce, 2017). It has been
further seen that usage of social networks are not only beneficial for e-commerce companies but
at the same time it also generates additional revenue for social sites too.
On the other hand, it has been further evaluated that impact of social networks is not
always positive for companies belonging to e-commerce industry. This is because, social
networks develops extensive competition for overall industry which indirectly reduces their
profits at individual level (Busalim, 2016). In addition to this, it can be said that if social
networking sites are not used in right direction then might develop their negative image among
customers. As a result, this negative image reduces number of customers for business
organisation (Huang and Benyoucef, 2015).
Benefits of e-commerce websites in fulfilling demand of customers
E-commerce helps in speeding up the purchasing process as when someone thinks of
buying a particular product from physical store, it takes more time. But with e-commerce
websites, customer can avail a specific product speedily and easily. It will help customers in
saving their time and provides plenty of options to choose from (Advantages of E-commerce,
2018). As per the thoughts provided by Sharan, D., (2015), A swinging success has been
enjoying by Amazon on account of its offerings to consumers. The bigwig of e-commerce offers
a lot on customer's platter, including easy accessibility to streaming service ‘Amazon Instant
Video’ of brand and free 2 day shipping facility. Amazon understands the specific needs of
various customers and strives to satisfy them with dash of innovation (Aghamirian, Dorri and
Aghamirian, 2015). Firm basks in the glory of having large number of satisfied consumers and
approximately 60% of global businesses are willing to work with it. This is one of the main
reason behind sky high revenue and sustained growth of Amazon (Amazon is the King of E-
commerce, 2015).
On the basis of perception of Brianna Wills, (2014), e-commerce is considered as the
platform where buying and selling of products are done through internet. It is the one among the
fastest developing trend which is supported with technology. Now a days, business organisations
are focusing on the enhancing their businesses by opening its online stores in order to reach
untouched or leftover customers (18 Major Benefits of e-Commerce Business for Retailers &
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Customers 2018, 2018). It has been analysed that main benefit of e-commerce websites in
fulfilling customers demand is that it convenient to each and every customers which makes it
easier for them to order to their desired product without facing any difficulty.
The impact of social media on e-commerce buying behaviour
On the basis of thoughts presented by Riter, T., (2017), it has been analysed that Amazon
have set bars for customers expectation as they are comparing all of the websites which are able
at e-commerce sites in order to buy perfect product according to their expectations. It has been
seen that around more than 500 suppliers, distributors, retailers and logistics conducted an
collaborative survey in which response gathered from respondent have been evaluated together.
This evaluation have provided to Amazon in evaluation customers buying behaviour.
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According to above specified graph, it can be said that customer buying behaviour is
based on numerous of factors such as Pricing, product availability, free shipping, trending social
media, free returns, better internet discovering, trending on social networks etc. In this, it has
been identified that around 68% of customers thinks that they gets best price on Amazon (E-
commerce) platform. It has been further seen that approximately 54% of customers thinks that
product availability is the main thing which influences their interest towards shopping from
online site. 36% of them thinks that product assortment is essential factor influences buying
decision of customers. Apart from this, there are numerous of factors which affects buying
behaviour of customers that have represented as above. Along with this, it is further seen that
modern customers are also giving preference to additional services that are being offered by
Amazon. Thus, on the basis of overall evaluation, it can be said that by analysing all factors
Amazon can enhance its profitability (Akter and Wamba, 2016).
As per the views presented by Kwahk and Ge (2012), it can be said that social
networking sites allows business organisation in identifying actual experience of customer with
the company, their expectation, buying behaviour and changing demand. It has been evaluated
that social networking sites plays an essential role in identifying customers buying behaviour as
they represents their real life experience on social sites which helps company in understand them
well.
Impact of e-commerce on Demand patterns of customers
As per the view point of Tom K, 2017, globalisation and e-commerce are becoming more
intertwined now a days that provided businesses an opportunity to increase their connectivity and
boost up their speed of expansion. This has supported online retailers like Amazon by providing
them an medium to communicate with its customers in order fulfil their need by altering services
as per the shopping pattern of customers (E-Commerce Influence, 2017). E-commerce has also
changed the demand pattern of customers by providing them more options and alternatives to
compare over internet anytime as per their requirement in order to select best which provide
maximum benefit over minimum cost to customers.
According to the view point of Jun-Sheng Li, 2019, omni-channel retailing has now
become a goal that every retailer now a day dreaming for but only few of them become able to
achieve. Amazon now become a king of omni-channel which perform around 50% trade that
covered in overall e-commerce. This achievement has supported Amazon to provide its customer
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a seamless shopping experience wherever customer like to shop. These all benefits has changed
the demand pattern of customers as now they started expecting retailers to provide more
customised services where product are as per customer requirement. In addition to this now
customer started expecting to get more options to analyses in order to get a product or services of
their choice.
4.0 Research Methodology
In this present research for Amazon, investigator have used numerous of research
methodologies in order to complete it in a effective manner. By using effective research
methodology investigator got opportunity to collect and evaluate details on chosen research topic
that is To evaluate the effects of social networks on e- commerce in regard to consumer buying
behaviour and demand patterns in UK (Chaffey, 2015).
4.1 Research Design, research approach and research type
Research design: In current research for Amazon, investigator have adopted descriptive
research design that emphasises on conducting in depth evaluation. This is because, researcher
wants to collect and evaluate detailed information about a particular project. Scholar use
descriptive approach to fulfil the main aim which is effect of social network on demand pattern
of customers. It has also been evaluated that there are some positive and negative outcome which
affects the overall result for current research (Awa, Ojiabo and Emecheta, 2015). With the help
of natural survey and observations researcher get authentic data for its research project. On the
other hand, negative outcome is that it is a time consuming process and requires lot of effort.
Research approach: In present research report, investigator have used deductive
approach. If researcher have prepared hypothesis for the dissertation which is required to be
either rejected or accepted during the process of research than deductive research is followed.
This is because, deductive approach helps researcher in conducting effective result with quality
outcome. In order to achieve aim of this Amazon research report, which is buying behaviour of
customer, scholar use deductive approaches (Djafarova and Rushworth, 2017).
Research type: In this research, Scholar have used secondary method of data collection
so that desired result can be achieved. This data refers to already collected or published data by
some other person but used by researcher for own purpose. Using this method have both negative
and positive impact on the current report. By using secondary data in this research, time and
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money both saved by the researcher. On the other hand, due to past research, secondary data
might not provide required outcome. For successfully accomplishing the aim of this present
report, which is buying behaviour pattern of consumers, secondary data is used by researcher
(Dwivedi and et. al., 2016).
4.2 Rationale
In present research report, in order to obtain research aim, researcher used secondary
method of data collection. By using qualitative method this will be done effectively as this will
provide information on the basis of human perception. Also this methodology will help in
developing effective structure which will provide guidelines to the team who is involve in this
research. As a result, every individual will work in common direction which will provide
accurate information to readers (Frederiks, Stenner and Hobman, 2015).
Research paradigm: In the present report researcher apply both type of research which
is positivist paradigm and interpretivist paradigm. In order to accomplish the objective of this
research that is effect of social media, both research paradigm are used. Using interpretivist
paradigm provide positive outcome as it is based on human behaviour (Hilbert, 2016).
Research Methodological approach: In the current research project, qualitative research
methodology is used by investigator. Reason behind using this methodology, is that it is based
on non-numerical data. In context to present research topic related to e-commerce and buying
behaviour of customers qualitative research is considered as the best one. Positive impact of this
research is that it is based on human observation and experience which aid the investigator while
conducting this research (Liu and Park, 2015).
Research Equipment: While conducting present research report, scholar use zeta sizer,
accusizer, HPLC equipments for collecting secondary data available at various website. In
context to objective of this research that is influencing buying behaviour of consumers,
investigator used previously stated equipments (Nadeem and et. al., 2015).
Data Analysis: With the help of secondary data available at various websites,
investigator have interpreted them according to the requirement of current research. In this
regard, mainly investigator have used online articles for research on e-commerce and Amazon.
Amazon is large scale company, that made it easier for investigator to gather information from
online articles (Ngai and et. al., 2015).
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5.0 Access to Data and Research Ethics
The access of data has been done by following legislation of Data protection act 2002 in
order utilise required information in proper manner. However, the investigator provides
appropriate explanation to selected respondents regarding actual reason and needs of carrying
research of specific topic (Ramanathan, Subramanian and Parrott, 2017). In addition to this,
respondents were never forced to participate in investigation and researcher did not disclose any
kind of data & facts to any outside authorities. Moreover, proper respect & dignity has been
maintained and collected did not utilised for any other purpose that is commercial in nature.
Furthermore, overall information for conducting study has been collected by primary and
secondary sources without manipulating the data.
6.0 Limitations
Considering the study, it has been analysed that limitations of the investigation is in context
of variances of project in terms of cost as well as duration of time. However, it is not possible to
carrying out in depth analysis due to lack of sufficient funds and period of time to conducting
investigation. Moreover, the research could not collect accurate data from entire targeted
population and not successfully evaluated entire attributes of investigation (Teng and Wang,
2015). Furthermore, the study evaluation based on cross sectional basis rather than longitudinal
basis.
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