Consumer Behaviour and Social Media Impact

This report investigates the impact of social media on consumer behavior, focusing on how platforms like Facebook and Instagram influence purchasing decisions. It includes a detailed analysis of research findings, methodologies, and recommendations for businesses, particularly Asda, to enhance their marketing strategies through effective social media engagement.

CONSUMER BEHAVIOUR- DOES SOCIAL MEDIA AFFECT
CONSUMER CHOICES
STUDENT NAME:
STUDENT ID:
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................5
1.1 Formulating and recording the outline specification of research project..................................5
1.2 Influential factors contributed in the selection process of research project...............................5
1.3 Critical review on the impact of social media on consumer behaviour.....................................6
1.4 Research project proposal on the impact of social media on consumer choices.......................7
1.5 Plan and Procedure....................................................................................................................7
Task 2...............................................................................................................................................8
2.1 A. Resources required for research............................................................................................8
B. Relationship between resource research and research questions................................................8
2.2 Research investigation...............................................................................................................8
2.3 Recording and collecting data....................................................................................................9
TASK 3..........................................................................................................................................11
3.1 Research Evaluation Methods..................................................................................................11
3.2 Analysis of Outcome................................................................................................................14
3.3 Recommendation and Justification..........................................................................................15
Task 4.............................................................................................................................................16
4.1 Outcomes and recommendations.............................................................................................16
Reference list.................................................................................................................................18
Appendices.....................................................................................................................................19
Appendix 1.....................................................................................................................................19
Appendix 2.....................................................................................................................................20
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Introduction
Over time the choices of customers have gone through remarkable changes. The growing
sophistication of technology and the changes in lifestyles have influenced these choices. In this
context the role of social media in context of customer choice has created curiosity among
people. In regards to this, this study aims at conducting a research on this case and presenting the
process that is essential for a credible research work.
Background
In order to analyse the research in a better way Asda Stores Ltd. has been taken as an example to
identify the case study of it. It is a British supermarket retailer founded in 1965
(Mysupermarket.co.uk, 2017). In between 2003 to 2014, it has been considered as the second
largest supermarket chain by market share which has integrated its marketing in social media
platform by engaging a huge number of customers (Mysupermarket.co.uk, 2017).
Research rationale
The rapid growth of using social media marketing in terms of affecting customer’s choices of
making decision while buying any product or services. In today’s world companies are using
social media platform to reach to its target market because in modern times people are more
engaged with online media than any other media. In order to drive sales Asda is using social
media podium to get closer to the customers (As stated by kardes et al. 2014, p.23). The
shopping app of Asda helps the purchasers to manage their budgets which will eventually lead
down to lowest money categories (According to Bolton et al. 2013, p.245).
Research aim, objectives and main research question
The aim of this research is to significantly study the effects of social media on consumer decision
making.
Objectives:
 To crucially observe the influence of social media on the customers of Asda
 To recognise the outcomes of social media on decision making while purchasing
 To assess the impact of customer’s decision making on the entire business of Asda
 To recommend few methods through which Asda can advance their strategies of social
media marketing.
Main research question
What is the impact of social media on consumer choice?
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Scope
Social media is having vital impact on the consumer behaviour. Different social sites provide a
platform to the business for enhancing the growth. The research work will help Asda Stores Ltd
to focus on the consumer properly. The topic will be helpful to identify the approach of the
consumers to the social media. For increasing the competition in the market different
organisations are upgrading their strategies. Marketing consultants have considered that the
reason customers buy products is either to solve an issue which will accordingly erode way the
loss or to increase enjoyment level for staying trendy Therefore a big presence of the companies
should be on social media because majority of the population are dependent on social media for
making a purchasing decision. The research project is having great importance to expand the
influence of social media on business development.
Research methodology
By analysing the influences of social media on customers, the researcher will observe this recent
research by evaluating the impact of customer’s decision making on the overall business of
Asda. The beginner for the current research will gather both primary and secondary types of
data. Chief qualitative data will be collected by interviewing two Asda’s social media marketing
executives; on the other hand, secondary qualitative data will be composed from different
journals, books, etc.
Research Design
It refers to the overall planning of integrating research components properly. The integration
needs a logical way. Without logical process, research components cannot be merged properly.
There are different types of research designs such as co-relational, descriptive, and experimental
and semi experimental. This research work has adopted descriptive design or explanatory design.
Research Philosophy
Research philosophy deals with the source and improvement of knowledge. There are mainly
two types of research philosophy, which different research works follow. The one is positivism
and other is Interpretivism. The topic has followed positivism philosophy because the research
work has focused on the real life facts.
Research Approach
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There are mainly two types of research approaches. The one is inductive and another is deductive
approach. This research project has followed deductive approach the research has made the
evaluation of assumptions.
Task 1
1.1 Formulating and recording the outline specification of research project
According to Chu and Kim, (2013, p.47), the role of social media on consumer marketing
decisions is going on startling in recent years due to more involvement of the companies in social
media strategies. It is considered to be quite unfortunate that many organisations without having
any clear strategy dive into social media platform which result into decline progress of the
company. The impact of social media marketing on consumer purchasing decisions acts greatly.
In this study, the various aspects of consumer decision-making process have been discussed to
get a clear view of its emerging significance in businesses. The ways and plans have been
presented in order to show the vital activities of this topic and how it can be implemented. The
research has also presented the feedback of 25 respondents in terms of their views towards the
effectiveness of social media in their purchasing choices. The future recommendations have been
stated for the companies to get the influential aspects in order to run their business productively
and could get their target market through social media marketing.
1.2 Influential factors contributed in the selection process of research project
As stated by Hajli (2014, p.387), in today’s scenario, social media has become an integral part of
an individual’s life. There are various social media platforms which are being used widely by the
customer to get in touch with the companies for making decisions whether to buy their products
or services. Such platforms include; Facebook for marketing purpose, Twitter on the other,
Instagram to get in through picture uploads of various markets and LinkedIn where wide number
of users is connected with the corporate world and the professionals get in touch with them.
Overall the estimation of active participation in social media is beyond millions. It has been
recognised by the marketers that social media marketing plays a significant role in
communicating marketing strategies. The companies get help from the social media platform for
marketing as well as communicating with the customers for the purpose of their choices while
purchasing any commodity. Therefore, this combination with the market professionals will help
in identifying and understanding the customer requirements and their choices based on certain
products or services. In regards to this potential of emerging social media involvement in
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organisational performance, this particular topic is selected. Further, various works on related
field enhance the availability of information and this reflects the possibility of representing a
credible work. Considering these factor, this particular topic is selected.
1.3 Critical review on the impact of social media on consumer behaviour
According to Solomon, (2014, p.5), social media usage has reached to a high progress level
where in recent scenario; consumers mostly prefer purchasing goods and services from online
and in addition, also operate business through social media podiums. During purchasing
commodities, consumers are getting influenced on variety of available options present in social
media sites including the reviews and comments of other users about the relevant product or
services which the former wants to purchase. For analysing the outcome of whether social media
genuinely affects consumer’s decisions of buying, it is essential to have an outlook and proper
research on the time consumed on internet and their influence level by others. Most of the
companies today have its pages on Facebook, Instagram, Twitter and other social media sites. On
these pages it is often observed that the social media marketing manager of the companies post
pictures, comments and also provide reviews of those customers who either often visit their place
or buy items from their websites.
It is generally seen that the consumers when plan to purchase any product go through the
opinions of other reliable customers and judge it accordingly. Thus, it can be stated that social
media adversely affect the customer's choice of purchasing because it has offered a broad
platform for the mass to post comments, viewpoints and pictures in terms of their opinions. A
distinct landscape has been evolved through the onset of social media in order to create a new
network of personal connections (Zhang et al. 2014, p.75). For extending this platform, trade
organisations views huge opportunities towards the population and they show curiosity to step
into the trend. On the other hand, to the core of the industrial world, customers are kept behind
for social media. This research project will reflect a detail study based on selection procedure of
the people, decisions related to it and implementing the decisions before purchasing.
As opined by Aral et al. (2013, p.3), the outcomes and findings of the research project represents
that individuals perform effective role in order to search information and materials on social
media mostly rather than mass media. This includes the both objective and subjective methods of
strategies while conducting the assessment. All the challenges brought up by the social media to
the consumer’s technique of buying and in their decision-making process have been
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appropriately identified. As commented by Goodrich and De Mooij (2014, p.103), the growing
sophistication on the ground of digitalisation changed the organisational performance tactics of
different business entities. In today’s world, consumers can approach to all essential data not
only in a vast range but with high speed of operation. Thus, social media is seen to play a vital
role in collecting data, ideas and values as well as about the offers and discount stuffs.
1.4 Research project proposal on the impact of social media on consumer choices
The key marketing aspects of social media towards its patrons are that it recognises in creating
endorsement to the referral, estimating commodities and sharing its investment by using social
media platforms. Hajli (2014, p.387) mentioned that communication through online marketing
has been imposed via some social podium which builds an impact on both marketing strategies
and on consumer decision-making. The rise of communication rate has been anticipated by
customer socialisation theory among the customers which not only results into disturbing
cognitive attitudes but also the behavioral and intuitive factors. On social media sites, advertising
has taken a new phase of consumer behavior. Consumers spending more time on online shopping
sites tend to either purchase or start business on social media itself due to their active
participation and communication with large group of mass. It has been observed that consumer
decision-making has created a huge impact on the recommendation which is made by the people
who are in connection with them socially (Bolton et al. 2013, p.245). This will create brand
awareness; customer’s buying attitudes and various mediums of advertising. The rate of
consumer purchasing increases on the basis of high responses of received products and services.
Thus, it reflects that the top most brands go through an overall view of t his statistics and extend
to social media marketing for rise in brand image.
1.5 Plan and Procedure
In order to plan the research, the learner has developed a chart with different activities with a
time period of three weeks. The planning of research on effect of social media on consumer
choices takes two and a half week followed by the literature review which only takes three days.
The research methodology took a time period of two weeks where collecting primary data started
from the middle of first week till second week. For analysing data the learner started his job from
the end of second week to 3rd week. Draft submission was done on the beginning of third week
followed by final draft and the submission was done at the end of third week.
(For Gantt chart, refer to Appendix 2)
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Task 2
2.1 A. Resources required for research
In accordance with this research, resources have been met with research question that on how
social media can affect consumer’s choice of decision making. With this purpose it has been
considered that social media networks of various brands are utilised by the customers in order to
be upgraded about all relevant top brands and the development of products by following online
available information. Facebook imposes a brand community which links up people from all
over the globe in order to have an outlook on the contents in the pages of various goods. As
commented by Zhang et al. (2014, p.78), the customers here not only view the page but also can
like it and review the items used by them. Many companies are aware of brand communities
which divert their concentration by providing useful advantages to the customers by means of
entertainment, social partnership and various networking sites. For example, Facebook in
accordance with corporate profile are mainly used for marketing basis and involve the mass for
building up relation with other potential patrons.
B. Relationship between resource research and research questions
As stated by Gu and Ye, (2014, p.570) social media influence the consumers to make their
choices of decisions by going through the reviews of their purchased product and services before
buying. Modern world companies are using social media platform to get in touch with the target
audience in order to increase the marketing progress of the company. This gets link with the
research question that how social media impact on customer decision making. As Asda provide
shopping app and websites for the buyers to make them easy and reliable for shopping to save
both time and money. This, results into fast decision making through the presence of social
media. It also encourages people who want to start business with the help of social media
podiums and thus they connect with business-oriented sites like LinkedIn. This helps the
companies to compete better in the market for earning huge amount of profit.
2.2 Research investigation
The research questionnaire has been made with the help of Google link on the basis of influence
of social media on consumer choices of decision making while purchasing any product. On
different social media platforms of Asda, the questionnaire has been put so that the customers
can easily avail it and fill up with their individual opinions. This will help to collect the data
provided by the customers to the organisation and analysing the areas where improvement is
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needed, affecting areas and negativity also. The following survey will lead to betterment of
social media operations in business so that the customers are more influenced with the
techniques and the marketing procedure gets increased. As Asda is a renowned retailer, therefore
the customer survey will help to build its image for future progress.
(Refer to appendix2)
2.3 Recording and collecting data
Q.1) How far do you agree that social media influenced customer’s interest on decision
making?
Options % of respondents Number of respondents Total respondents
Agree 28% 7 25
Strongly agree 56% 14 25
Neutral 4% 1 25
Disagree 8% 2 25
Strongly disagree 4% 1 25
Table 1: Influence of social media on consumer choices
(Source: Created by the author)
Figure 1: Influence of social media on consumer choices
(Source: Created by the author)
Q.2) How far do you agree that social media creates interest on new customer’s
preference?
Options % of respondents Number of respondents Total respondents
Agree 48% 12 25
Strongly agree 33% 8 25
Neutral 8% 2 25
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Disagree 8% 2 25
Strongly disagree 4% 1 25
Table 2: Interest of social media on new customer’s preference
(Source: Created by self)
Figure 2: Interest of social media on new customer’s preference
(Source: Created by self)
Q.3) How far do you agree that social media is having negative impact on providing
information?
Options % of respondents Number of respondents Total respondents
Agree 24% 6 25
Strongly agree 8% 2 25
Neutral 16% 4 25
Disagree 40% 10 25
Strongly disagree 12% 3 25
Table 3: Negative impact of social media on providing information
(Source: Created by self)
Figure 3: Negative impact of social media on providing information
(Source: Created by self)
Q.4) How far do you agree that business are effectively using social media for influencing
consumer choices?
Options % of respondents Number of respondents Total respondents
10

Agree 40% 10 25
Strongly agree 32% 8 25
Neutral 4% 1 25
Disagree 16% 4 25
Strongly disagree 8% 2 25
Table 4: Effective use of social media in business
(Source: Created by the author)
Figure 4: Effective use of social media in business
(Source: Created by the author)
Q.5) What do you recommend for influencing consumer choice using social media?
Options % of
respondents
Number of
respondents
Total
respondents
Providing authentic information 20% 5 25
Connecting with the customers 16% 4 25
Promoting events through social
media
40% 10 25
Collecting customer feedback and
suggestion
24% 6 25
Table 5: Recommendation for influencing consumer choice
(Source: Created by the author)
Figure 5: Recommendation for influencing consumer choice
(Source: Created by the author)
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TASK 3
3.1 Research Evaluation Methods
According to Goh, Heng and Lin, (2013, p.88), it is very much essential for any types of
evaluation process to verify the information accessed for the purpose of research project. Social
media helps to individuals to seek out data actively in lieu of receiving information passively. It
is very much essential to identify platforms which are used in searching data. Research
evaluation techniques are basically of two types. One is formative and another one is summative.
Formative evaluation refers to the development of the course of action. On the other hand,
summative evaluation means making judgment of efficiency of a course of actions. In case of
formative assessment, evaluation is made in early stage. This type of assessment is helpful for
the new project. Out of these two evaluation methods, summative technique is more appropriate
in this project than the formative technique. As stated by Bolton et al. (2013, p.245), the research
project is prepared by accumulating data from different sources. The assessment is not
implemented on the early stage of the project work. Information which is collected from various
sources is used in a systematic manner in this topic. This is why the summative technique is
followed.
As per Hajli (2014, p.387), the main goal of any evaluation is to provide a proper feedback to a
variety of audiences. As per the feedback collected from audiences are used as concrete
information for decision making process. In this research project also the feedback has been
taken from different audiences and ultimate decision has been made. There are so many
strategies of evaluation. These are explained below.
● Scientific experimental model which is sometime called historically dominant evaluation
strategy. In this model values are taken from social science.
● Program evaluation and review technique provides more effective result in the research work.
● Qualitative model makes the focus on the observation process.
● Participants’ model emphasises on the central importance of the evaluation participants.
Each of the above strategies provides productive result to the evaluation process. Strategies are
varied as per complexity of the problem. In this research work scientific experimental strategy is
adopted as it is a specific objective based research. Qualitative and Participants models are also
applied here partially.
Methods to calculate mean, mode, median, range, standard deviation and variance
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