Analyzing Consumer Behavior Influence on Facebook and Purchase in SMEs

This report investigates the influence of consumer behavior and Facebook on consumer purchase decisions within small and medium-sized enterprises (SMEs). It explores the benefits, implications, and challenges of integrating Facebook and consumer behavior insights into SMEs, highlighting their role in driving business success. The report covers stages of digital transformation, the impact of e-commerce, emerging technologies like cloud computing and big data, and the importance of stakeholder engagement. Methodologically, it employs the research onion framework to systematically analyze the research topic, emphasizing the role of research philosophy in guiding the information gathering process. This study aims to provide a comprehensive understanding of how digital technology and consumer behavior interact to shape the business activities and purchasing power within the SME landscape.

Consumer behavior influence on Facebook and consumer purchase

Importance of digital technology in the business activities
Table of Contents
Introduction......................................................................................................................................3
Literature Review............................................................................................................................5
Methodology....................................................................................................................................8
References................................................................................................................................ 13
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Importance of digital technology in the business activities
Introduction
Research aim:
“How Consumer behavior influence on Facebook and consumer purchase"?
Research objectives:
This research study has created a focus on the purchase of the consumers behavior and Facebook
that helps to grow the consumer behavior.
➢ To emerge the effectiveness of the behavior within the organization of the small and medium
enterprises.
➢ To understand the current market scenario of the small and medium enterprises on the basis of
the change in consumer behavior.
➢ To improve the implications of the behavior and Facebook on the small and medium enterprises.
➢ To highlight the success of the small and medium enterprises and E-commerce.
➢ To focus all the business activities of the stakeholders through the digital technology such as
Facebook.
Research questions:
➢ What are the benefits of the consumer behavior and Facebook in an SMEs?
➢ What are the implications of the consumer behavior and Facebook on SMEs?
➢ What are the challenges to integrate the consumer behavior and Facebook within organizations?
➢ How consumer behavior and Facebook drives the success of the business of SMEs?
Background of the topic:
The aim of this research project is to investigate or to study all the usefulness of the channel of
the digital technology such as Facebook and behavior of consumer on the small and medium
sized enterprises (SMEs). Digital technology and steadily change in consumers has a lot of uses
or benefits in the small and medium enterprises such as for the purpose of administration the
Facebook and other social media is rapidly used. Facebook is also used to collaborate, connect,
communicate and for building relationship with each other in a large scale or globally (Haight et
al. 2014). In this research report all the impact of the digital technology such as Facebook and
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Importance of digital technology in the business activities
behavior of consumers is having great impact of consumer purchase and the business activities of
the business of the small and medium enterprises has been described briefly.
Rationale:
In this project report we are going to analyze the impact or effectiveness of the consumer
behavior and Facebook on the purchase of consumers which are relatively small and medium. In
today’s world of competition all the business activities depend on the behavior of consumer and
digital technology such as Facebook that is used to promote and advertise the product of the
business. It also effect the purchasing power of the buyers, In present situation of market, the
Facebook has a great impact on every business as well as small and medium business also. It has
the major contribution for emerging the technology within the organization of the small and
medium enterprises and purchasing decision of consumer. The Facebook is always responsible to
drive the success of the business activities of the small and medium enterprises and it also covers
all the stages of the SMEs with the help of digital transformation. It also helps to enhance the
growth of the consumer behavior. Digital technology has the power to engage with the
stakeholders in the small and medium business to improve the technology (Westerman et al.
2014). For proper development in the small and medium enterprises the transformation of the
digital technology is very useful. Consumer behavior has also a great impact on the small and
medium enterprises. It reduces the overall loss and also reduces the costs of investigation.
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Importance of digital technology in the business activities
Literature Review
This research report describes about the five elements of the small and medium enterprises.
These all the elements are described one by one as follows:
Stages of Digital transformation:
There are six stages of the digital information which are included such as:
1. Business as Usual: The small and medium enterprises operate with the customers, business
models, processes and technology and also believe in the solution of the digital relevance.
2. Present and Active: There have a lot of experiments for driving the digital literacy and the
creativity throughout the small and medium enterprises to improve globally for implementing the
success in the specific processes and the touch point.
3. Strategic: The strength in collaboration can be recognized by creating individual groups.
Individual groups contribute to the new roadmaps which plan for the ownership of the
transformation in digital (Kane et al. 2015).
4. Converged: Facebook can creates to guide the strategy and the operations which are based on the
small and medium enterprises.
5. Innovative and Adaptive: Consumer behavior and Facebook identifies the present trends of the
market of small and medium enterprises. It becomes very innovative that can be easily adapted
by anyone in the organization.
6. Formalized: The digital transformation becomes more promising and initiates a great result to
support the new technology and the resources. It also executes a better environment to get
success in the business activities of the small and medium enterprises future.
Consumer behavior and Facebook on SMEs:
The Consumer behavior and Facebook has a great impact on the business activities of the small
and medium enterprises. The future growth can be achieved only by using the new and the
innovative digital technology such as Facebook in the small and medium enterprises. In order to
stay in this world of competition the digital technology is very beneficial. This could be anything
from bringing in new devices so that the employees of the small and medium enterprises can
perform their duties remotely or without any physical contact and this can be done by creating
any mobile app to improve the internal communication. It is always a better thing to work any
task with the help of artificial intelligence as this artificial intelligence reduces the time of work
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Importance of digital technology in the business activities
also reduces the heavy burden of work in the small and medium enterprises (Bustinza et al.
2013). By switching to the demand of the latest technology in digital the employees of the small
and medium enterprises save the time of working as well as the investment of money both. The
Facebook in the digital world advances the growth of the small and medium enterprises and
holds a lot of value to remain in the level of competition and also to compete with other by
adopting new technology of the digital world.
E-commerce:
E-commerce or electronic commerce is a concept or methodology of the modern business such
as the small and medium enterprises. It addresses all the requirements of the business which is
done by the process of selling or buying of goods or services with the help of digital technology
such as the social medial or the internet (Hill et al. 2015). It promotes the business to get
countless customers and also extends the network of the business of small and medium
enterprises all over the world. E-commerce helps to reduce the overall cost of the business and
has a lot of advantages in small and medium business which are explained briefly.
● Creates a flow of short term revenue.
● Operates the better communication to the customers by reducing the cost.
● Creates a opportunity to operate nationally as well as internationally.
● Provides the low operational costs and the better quality of services.
● Requires no theoretical geographic limitations.
● Improves the visibility of the customers by using the search engine optimization.
● Helps to provide in depth information about each and every product or service to the customers
(Wu et al. 2015).
● Identifies the important barriers or the inhibitors in the small and medium enterprises.
● Reduces the information search and also the costs of transaction.
Emerging Facebook and consumer behavior within organizations:
It is important for an organization to be known or familiar with the demand of consumers and
their behavior towards the organization and Facebook in the small and medium enterprise. There
are many other emerging technologies in the small and medium enterprises that affect the
consumer behavior which are as follows:
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Importance of digital technology in the business activities
1. Cloud Computing: Cloud computing is an information technology which enables to access the
shared data. It offers the flexibility to grow the small and medium business enterprises efficiently
as well as more economically. It is simply computing the delivery services such as databases,
networking, software and many more thing on the internet.
2. Specialized software: Every small and medium business relies on the specific tasks. It is
associated with paying the staffs and the suppliers, the events or the meetings. These all the
activities are done with the specialized software in the small and medium enterprises.
3. Productivity and collaboration: The collaboration and the productivity of the small and medium
enterprises includes the following activities such as simultaneous editing of the documents,
instant messaging, video, voice and web conferencing (Katz et al. 2014).
4. Big data: The collection of data is not a new thing in the small and medium enterprises. These
big data challenges to the data storage, sharing, transfer, information privacy, data analysis and
also updating the information in the small and medium enterprises.
Stakeholders of digital technology:
The chance of successfully transforming to digitalization gets increased by getting on board the
following stakeholders:
1. Senior management- In public sector enterprises and organizations, trying to bring change is
very difficult. The cuts in the devoted budget in the public sector organizations have affected the
availability of resources and specialized experts in different fields (Oldhamet al. 2015). The
most appropriate way to accelerate the change is to buy-in at the highest level of management.
Convincing the senior managers and getting them on board to execute the changes is often an
option for the benefit of the organization which is trying to transform itself to digital means.
2. IT Department-Information Technology is still the required stakeholder to undergo digital
transformation when cloud based services and digital transformation initiatives are playing major
roles. The department works towards blending the new technologies with those of the existing
ones in the premises to bring about digital transformation.
3. Finance- Digital transformation poses challenges in the way to acquire financial resources for
securing the necessary methods to undergo changes. Return on investment is the reason to get the
required funding. The digital transformation must also be explained on the relevance of getting
more return from the investments.
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Importance of digital technology in the business activities
Methodology
Research onion
This part of the study helps in analyzing the topic in details on the basis of key divisions being
listed in Research onion which is regarded as an important tool of methodology. Research onion
is referred to as the tool which proves to be a guide for students related to academics and their
research is conducted in a particular format by the stages listed in the structure of methodology
(Johnston 2014). This type of methodology helps in extracting the desired results out of a
research study.
Figure 8: Research Onion
(Source: Saunders et al. 2009)
The above diagram is pictorial representation of the stages involved in the study procedure of the
format of methodology which helps the students in conducting research study in a systematic
procedure according to the format of methodology and it helps them to derive more information
and the desired results out of the research study.
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Exploratory DescriptiveExplanatory
Research Design
Importance of digital technology in the business activities
Research Philosophy:
Implementing research philosophy in the research methodology helps in identifying relevant and
appropriate steps in order to gather information regarding the research study. Cameron (2009)
stated the fact that research philosophy helps the students undertaking research study to assume
the relevant information required to take forward the research topic. The evaluation of a
particular research topic varies from person to person because of different thought process of
every individual thus it is very necessary to align the philosophy of the research study to give it
an effective outcome. Positivism, realism and interpretive are the forms of research philosophy.
Research Approach:
A definitive approach to the research study must be established in order to conduct the research
procedures in an organized manner. Inductive or deductive are the two ways in which a topic can
be undertaken for research study (Savin-Badenet al. 2013). One of the either forms of study can
be undertaken on the basis of the nature of the research study.
Research approach and its justification
In this present topic, the study will try to lay down the impact of digital technology on the
business activities depending on the study of different theories stating its influence and thus
deductive is way to be adopted for this research study.
Research Design:
The framework on which the research study is to be carried forward is determined by the
research design theories. The data is collected in a specific manner which justifies the objectives
to be attended in research study which is referred to as the research design (Lewis 2015).
Figure 9: Kinds of Research Design
(Source: Toloie-Eshlaghyet al. 2011, pp. 152)
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Importance of digital technology in the business activities
Research design and its justification
Descriptive design was integrated in this research study as it was the most appropriate design to
have justified the study of different impacts of digital technology in various business activities.
Adaptation of this process is mainly due to the descriptive nature of the study which involves
theories determining the impact of digital technology.
Data collection procedure:
Association of relevant details and information is referred to as the data collected for the study of
the research topic. Data collection helps the researcher to arrive at conclusions desired out of the
research study (Weigoldet al. 2013). There is a definite process to collect data and this is referred
to as the data collection procedure.
Data sources:
The data sources help the research study to gather information in details to help the topic to be
analyzed and studied deeply to get the best possible result out of the research study (Charneset
al. 2013). Primary and secondary are the two categories under which data collected type is
divided into.
In this research study primary sources are the employees providing an account of the impact of
digital technology in their working involving business activities.
Data technique:
➔ Qualitative:
Qualitative kind of data helps to add theories in the research study in order to lay the study in a
better and descriptive manner which would explain the study with more details and provide a
better understanding.
➔ Quantitative:
Quantitative data helps in acquiring statistical details relevant to establish better understanding of
the topic in the research study (Rezvaniet al. 2015). In this study a mixed approach has been
adapted by the researcher to provide a detailed study about the impact on business activities of
digital technology.
Population and sample:
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Importance of digital technology in the business activities
➔ Sampling technique:
Sample here refers to the account of information provided by the employees of different
companies. The account has been on the context of their observation about the impact of digital
technology in business proceedings. Interview by the top level officials have also been taken as
the part of the survey who have provided an account on the profitability of the business due to
technology.
➔ Sample size:
100 employees from different companies and industries have been the [art of the survey while
interview of 5 top level officials have been considered in this research study.
Time Horizon:
Important activities 1st
week
2nd
week
3rd
week
4th
week
5th
week
6th
week
7th
week
Choice of topic ·
Data accumulation: secondary
sources · ·
Layout preparation ·
Review of literature · · ·
Research plan build up · ·
Choice of appropriate
techniques of research · ·
Data collection: Primary · ·
Data collection analysis · ·
Data findings ·
Topic conclusion ·
Creation of Rough Draft · ·
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Importance of digital technology in the business activities
Final work submission · ·
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