Impact of Social Media on Consumer Buying Behavior - BUSN20019 Report

This report analyzes the impact of social media on consumer buying behavior, focusing on how social media platforms influence purchasing decisions across different age groups and demographics. The study examines how social media functions as an advertising medium, affecting attitudes towards advertisements, branding, and consumer purchase intentions. The research utilizes secondary data to highlight the influence of social media advertisements on consumer behavior, citing examples and statistics. The report also addresses the impact of social media on a company's financial performance, referencing the EBM model and relevant literature. Furthermore, the report includes references to support the analysis and findings, providing a comprehensive overview of the subject.

ANALYSIS ON THE
IMPACT OF THE
SOCIAL MEDIA ON
CONSUMER BUYING
BEHAVIOR

Field of Research
 The research based work which has been done in
the project is based on the criteria and situations
that creates an impact by the social media on the
behavioral characteristics of the consumer on the
matter of buying products (Ioanăs & Stoica, 2014).
 The research work is carried out solely on the basis
of the reaction and the behavior of the customers
to identify the impact of the social media on buying
behaviors of consumers by the strategiesof classical
EBM model.

IMPACT OF SOCIAL MEDIA ON
CONSUMER BUYING BEHAVIOR
The social media applications platforms
influences the behavior regarding the
shopping in all categories of the ages and
groups. The social media works as a
advertiser to the brand or the product that is
being sold. The social media directly affects
the attitudes on the advertisement, branding
based attitudes and the intentions of the
consumers on purchasing the products
affecting the buying behavior.

Secondary Data
• Maximum number of
youths agreed with the
point of getting
influenced by the
advertisements of the
products on the social
media applications
(Goh, Heng & Lin, 2013).

Secondary
data
From the diagram
presented, it has been
made clear that 122
responses out of the total
223 responses agree on
the matter of the influence
or the impact has been
created due to the social
media advertisement on
the consumers buying
behavior characteristics
(Balakrishnan, Dahnil & Yi, 2014).
Most of the various social
media platform assist the
clients to recognize about
the product including the
facts and details of the
product.

Secondary data
worksheet of
WOOLSWORTH for last 10
yearsWoolsworth
Ratio Formula 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Net profit margin Net profit/sales 3.16% 2.90% 2.66% 4.20% 4.08% 3.87% 3.85% 3.95% 3.94% 3.75%
Operating margin Operating profit/sales 4.49% 4.24% 4.63% 6.82% 6.27% 6.14% 5.96% 6.05% 5.96% 4.73%
Return on equity Net income/shareholders equity 16.55% 16.13% 16.01% 21.96% 23.35% 24.35% 25.85% 27.28% 26.07% 26.36%
Return on asset Net income/total assets 8.83% 8.10% 5.98% 9.65% 10.15% 10.18% 10.12% 10.28% 11.02% 10.89%
Woolworthsgroup.com.au. 2019. [online] Available at:
https://www.woolworthsgroup.com.au/icms_docs/195396_annual-report-
2018.pdf

Research question:
• What is the impact of social media on the
financial performance of a company?

References:
Ioanăs, E., & Stoica, I. (2014). Social media and its impact on
consumers behavior. International Journal of Economic
Practices and Theories, 4(2), 295-303.
Goh, K. Y., Heng, C. S., & Lin, Z. (2013). Social media brand
community and consumer behavior: Quantifying the relative
impact of user-and marketer-generated content. Information
Systems Research, 24(1), 88-107.
Balakrishnan, B. K., Dahnil, M. I., & Yi, W. J. (2014). The
impact of social media marketing medium toward purchase
intention and brand loyalty among generation Y. Procedia-
Social and Behavioral Sciences, 148, 177-185
Woolworthsgroup.com.au. 2019. [online] Available at:
https://www.woolworthsgroup.com.au/icms_docs/195396_annu
al-report-2018.pdf