Impact of Social Media on Consumer Buying Behavior: A Case Study of Woolworths Limited, Australia

This research investigates the impact of social media on consumer buying behavior in the case of Woolworths Limited, Australia. The research aims to analyze the conceptual understanding regarding social media and consumer buying behavior, evaluate the impact of social media on consumer buying behavior, and recommend social media strategies to enhance consumer buying behavior towards Woolworths products and services.

Running head: INDUSTRY RESEARCH PROJECT

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Table of Contents
Research problem........................................................................................................................................3
Research aim...............................................................................................................................................3
Literature review.........................................................................................................................................4
Research questions......................................................................................................................................9
Research design...........................................................................................................................................9
Research plan..........................................................................................................................................9
Research method: Qualitative, Quantitative or Mixed method..............................................................10
Sampling...............................................................................................................................................10
Ethical consideration.............................................................................................................................11
Research tools........................................................................................................................................11
Survey through questionnaire................................................................................................................11
Interview questions................................................................................................................................14
References.................................................................................................................................................17

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Industry partner
Woolworths is a renowned superstore in the region of Australia. It has over 995 stores in across
the country of Australia. It has recruited more than 115,000 employees in their retail stores and
distribution in order to offer the prompt and quality services to their consumers. It also purchases
the raw material through producers along with farmers. It also makes sure to deliver the finest
services to consumers.
Research problem
The key issue of Woolworths is to decline the retention rate of consumers and gaining the
turnover of the consumer because of a lack of effective marketing strategies. This investigation is
practiced to assess the “Impact of social media on consumer buying behavior in the case of
Woolworths Limited, Australia” (Woolworth’s group, 2018). In an organization of Woolworths
limited, social media is implemented in marketing strategy as it can be significant to obtain the
immediate feedback and reviews from customers. This marketing strategy is also significant to
persuade the purchasing behavior of consumers with regards to products and services.
Research aim
The key aim of this research is to address the “Impact of social media on consumer buying
behavior: A case study of Woolworths Limited, Australia”. Following objectives will be used to
attain the key aim of investigation:
RO1: To analyze the conceptual understanding regarding social media and consumer buying
behavior: A case study of Woolworths Limited, Australia
RO2: To evaluate the impact of social media on consumer buying behavior: A case study of
Woolworths Limited, Australia

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RO3: To recommend the social media strategy to enhance the consumer buying behavior
towards the products and services: A case study of Woolworths Limited, Australia
Literature review
Conceptual understanding regarding social media and consumer buying behavior: A case
study of Woolworths Limited, Australia
According to Solomon et al. (2014), social media marketing is defined as the process of
advertising the products with the help of social media platforms and digital communication
techniques. Furthermore, a number of aspects are related to marketing techniques like keeping
persistence, engaging contents and developing a loyal base for customers who actually react to
the content posted on digital sites. Social media is used by the customer to assess the review of
products. It also makes link amid advertisement and leading taglines to influence the consumers.
These related concepts act as a catalyst to develop the business by leveraging customer attention
with regards to particular advertisements.
In opposed to this, Godey et al. (2016) evaluated that these related concepts such as influential
taglines, and engaging contents can have a negative impact on the operation of marketing. Since,
there is a need for the company to give extra efforts during the implementation of marketing
activities. Moreover, eye catchy contents, taglines, effective product’s description can adversely
impact on the emotional sentiments in case of using the improper content.
In the view of Ioanăs and Stoica (2014), there are different conceptual models and theories that
are based on social media marketing. These theories should be used by an organization to gain
competitive benefits. In the way, AIDA model is used by different dynamic business companies
in order to develop the brand and create awareness regarding products among an individual. This

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model is related to data analysis tool which aids a company to build awareness regarding the
products and generate a sense of interest and desire between the customers.
Figure1: AIDA model of social media marketing
(Source: Kumar, et. al., 2016).
According to Schivinski and Dabrowski (2016), the capability of persuading the desire of
customers can aid to generate the favorable action of consumers regarding the products. This
model aids to resolve the needs of people and generate the product’s strategies with considering
needs through consumer behavior assessment.
In contrast to this, Erkan and Evans (2016) stated that the implementation of social exchange
theory is beneficial to influence the consumer buying behavior. This theory focuses on the
perception of an individual regarding a specific brand on the social media page.

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Figure 2: Social exchange theory
(Source: Hajli and Sims, 2015).
In support of this, Dessart et al. (2015) stated that buying decision of an individual can be relied
on both favorable and unfavorable aspects illustrated by consumers socially. For illustration, a
favorable review of customers regarding any product can generate a positive impact on sales rate
and negative reviews can generate unfavorable impact on the sales rate. Woolworths limited can
use this theory to assess and determines the comments regarding particular products and
community page to make enhancement in a certain idea in future.
Impact of social media on consumer buying behavior: A case study of Woolworths Limited,
Australia
According to Stephen (2016), the social media generates the awareness with regards to products
and services between customers as it may help to make their own judgment. By using the social
media, organizations can enhance the communication with the customers. In contrast to this,

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Zhang and Benyoucef (2016) illustrated that social media is an effective tool that may increase
the attractiveness of existing globalization time. Social media marketing is incorporated by an
organization for marketing the products as well as services. It can be cost-effectively for the
company because it broadens the marketing area in terms of sharing the valuable information in
less time among the bulk of customers. Social media provides the global connectivity. The
communities and forum on social media support an individual to interact with others and
distribute their opinions. This can lead the customers to make ultimate purchasing judgment.
In the view of Xiang et al. (2016), target advertising can be applied through online social media
channels at the workplace. It is an essential strategy to distribute the facts and figures of
Woolworths limited in front of the high amount of customers. It can be used for 24*7 hours.
Social networking plays a fundamental role to enhance the satisfaction degree among customers.
It is also an essential technique for a corporation in order to launch the products as per the
customer’s needs. This can favorably influence the consumers by reacting quickly.
In contrast to this, Sigala (2016) exhibited that there are certain social media platforms within the
marketplace that can be applied by an organization to advertise the products and services. These
platforms are Twitter, LinkedIn, YouTube, Facebook, and Instagram. There are large numbers of
companies which cannot survive without applying the social media platform as Woolworths
limited should use it to communicate with targeted customers without trouble.
Social media strategy to enhance the consumer buying behavior towards the products and
services: A case study of Woolworths Limited, Australia
According to Kim and Johnson (2016), recognized people can generate five times more faith as
compared to brand marketing. Hence, a corporation should hire celebrities, recognized person,

Dependent variable
Consumer buying behavior towards purchasing the Woolworth’s products
Independent variable
Social media
Such as Facebook, Twitter, Instagram and SEO
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and sportsperson in order to promote their brand as it would be effective to persuade the
purchasing judgment of consumers.
In opposed to this, Kim and Johnson (2016) stated that customers are spending a longer period
on surfing the social media sites and makes a judgment with respect to buying the products.
Moreover, customers can persuade their friends and the other person. The social media has made
quite rapid and made keenness to customers as they want to get immediate gratifications.
Consumers also want the instant answer and services hence the corporation should offer
instantaneous virtual dialogue to customers with regards to the brand. Furthermore, the company
should offer fast service as compared to make a delay in services as it would be beneficial to
influence the purchasing behavior of consumers.
Conceptual framework
From the above conceptual
From the above conceptual framework, it can be stated that there are two variables involved in
the research such as an independent and dependent variable. In this way, the independent
variable is social media on which consumer buying behavior depends (Hajli, 2014).

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Research questions
RQ1: What is the conceptual understanding regarding social media and consumer buying
behavior in the case of Woolworths Limited, Australia?
RQ2: How social media has an impact on consumer buying behavior in case of Woolworths
Limited, Australia?
RQ3: Which social media strategy can improve the consumer buying behavior towards the
products and services in the case of Woolworths Limited, Australia?
Research design
Research plan
Area of Work/Weeks 1 2 3 4 5 6 7 8 9
Consideration of research issue
Meeting and Feedbacks via Supervisors
Understanding on background
Assessment of literature review
Data gathering via primary data
Assessment of data and report writing
Editing and Proof-Reading
Final Submission of report
The above time plan would be beneficial for the investigator to complete the investigation in a
pre-determined time. Moreover, through a timescale, an investigator can be competent to build
knowledge regarding activities, which would be performed (Ioanăs, and Stoica, 2014). The
above research plan demonstrates that data gathering via primary sources will take more time as
compared to other activities.

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Research method: Qualitative, Quantitative or Mixed method
With the intention of this research, a mixed research design would be selected by an investigator
to complete the investigation in a particular time framework. This research design would be
selected as it contains the attributes of both quantitative and qualitative designing of research. In
such way, quantitative research design would be beneficial to gather numeric information
associated with research concern and qualitative research design would be effective to pool the
conceptual understanding regarding research issue (Khare, 2015). It would be also feasible for
evaluating the association amid consumer behavior and social media. This research design would
be chosen as it will enable an investigator in order to avoid the limitation and barriers of
investigation that may create during the investigation. Since, this design will be selected to frame
the theoretical knowledge and gain the practical understanding about the impact of social media
on consumer buying behavior (Jung, et. al., 2016).
Sampling
In this study, the researcher will use a probability sampling method by considering the simple
random sampling method to conduct their research and obtain a reliable outcome. Simple
random sampling method will allow the researcher to select research participants in randomly
basis and conduct the particular research. It is an imperative tool for selecting a sample of the
population from a different region. Through this model, each sample size is selected from the
whole population without any biases. The random sampling method declines the possibilities of
biases from the research (Bai, Yao, and Dou, 2015).
For conducting this researcher, the researcher will use a survey through questionnaire and
interview method to conduct the research. Researchers will select 55 research participants from
the different region. A researcher will select 50 consumers for the survey through questionnaire

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and 5 managers for conducting the interview method. From this method, the researcher will
collect the opinion of research participants towards the research matter.
Ethical consideration
The researcher will use the Data Protection Act 1988 for securing the information of the research
participants and main the relationship with them. The researcher will also use the ethical norms
at the time of conducting their research and eliminating possibilities of ethical issues. In addition,
the researcher will consider the guidelines of research participants to conduct the research in an
ethical way. The researcher will also not demonstrate the manipulative information in a research
report to conduct a study in an ethical way. For involving the managers in research, an
investigator will inform regarding the purpose of the investigation to the manager prior to
pooling the data (Jung, et. al., 2016).
Research tools
For this research, both primary and secondary data collection method will be used to gather the
information regarding research concern. Primary data would be gathered via using different
sources such as interview and survey through a questionnaire. Along with this, secondary data
would be collected through several sources like academic publication, journal articles, textbooks,
online articles, and offline articles. These data collection methods would be beneficial to gather
the reliable and valid data (Khare, 2015).
Survey through questionnaire
Demographic-based factor
Please specify your gender
Male
Female

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Please mention your age-group
26-30
31-35
36-40
Above 40 years
Objective based questions
RO1: To analyze the conceptual understanding regarding social media and consumer
buying behavior: A case study of Woolworths Limited, Australia
Do you agree that social media is used by you to gain the information regarding products
and services?
Strongly agree
Agree
Neutral
Strongly disagree
Disagree
What is the key reason for using the social media?
Interact with customers
Shopping of products
Share views regarding products
Access review about Product
Do you believe that social media is used to gain depth awareness regarding products and
services?
Strongly agree

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Agree
Neutral
Strongly disagree
Disagree
RO2: To evaluate the impact of social media on consumer buying behavior: A case study of
Woolworths Limited, Australia
Do you agree that social media has a favorable impact on their purchasing decision?
Strongly agree
Agree
Neutral
Strongly disagree
Disagree
Do you believe that social media affects you to move towards competitor’s brand?
Strongly agree
Agree
Neutral
Strongly disagree
Disagree
RO3: To recommend the social media strategy to enhance the consumer buying behavior
towards the products and services: A case study of Woolworths Limited, Australia
Which social media channel is highly used by you to make a purchasing decision?
Facebook
Twitter

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Instagram
LinkedIn
Do you agree that the company should provide offer fast service as compared to make a
delay in services?
Strongly agree
Agree
Neutral
Strongly disagree
Disagree
Do you believe that a corporation should hire celebrities, recognized person, and
sportsperson in order to promote their brand?
Strongly agree
Agree
Neutral
Strongly disagree
Disagree
Interview questions
Demographic-based questions
Please specify your gender
Male
Female
Please mention your age-group
26-30

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31-35
36-40
Above 40 years
Please specify your experience in the retail industry?
Less than 1 year
2-5 years
6-9 years
More than 9 years
RO1: To analyze the conceptual understanding regarding social media and consumer
buying behavior: A case study of Woolworths Limited, Australia
Do you agree that social media marketing is defined as the process of advertising the products
with the help of social media platforms and digital communication techniques?
Do you agree that AIDA model can be used by Woolworth’s limited in order to develop the
brand and create awareness regarding products among an individual?
RO2: To evaluate the impact of social media on consumer buying behavior: A case study of
Woolworths Limited, Australia
Do you agree that social media has a positive impact on consumer buying behavior? If yes, why
and if no, why?
Do you agree that social networking plays a fundamental role to enhance the satisfaction degree
among customers?
RO3: To recommend the social media strategy to enhance the consumer buying behavior
towards the products and services: A case study of Woolworths Limited, Australia

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Which social media strategy can enhance the consumer buying behavior towards the products
and services?
Do you agree that communities and forum on social media supports an individual to interact with
others and distribute their opinions?

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References
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