Analyzing Social Media's Influence on E-commerce and Consumer Behavior

This report delves into the impact of social media on e-commerce, examining its influence on customer purchasing behavior and demand patterns. It explores how social networks like Facebook and Twitter contribute to business development and online presence, as highlighted by Bowen and Ozuem (2014) and Bravo, Montaner, and Pina (2012). The report discusses how social media facilitates customer engagement, transparency, and brand loyalty, as noted by Rajagopal (2013) and Sasmita and Suki (2015). It emphasizes the importance of social media in providing customers with product reviews and complaint mechanisms, ultimately affecting customer satisfaction and business success. The report references key studies to support its analysis, offering insights into how businesses can leverage social media for effective e-commerce strategies.

To determine the impact of social networks on e-commerce
with a special reference to customer purchasing behavior and
demand patterns.

Impact of social networks on e-
commerce
• According to Bowen and Ozuem ( 2014), social networking plays a critical role in
development of business activities. It has been noticed that by having effective use of
diverse social media portals the businesses can have better presence in the market. E-
commerce success is dependent over online presence so it indicates the beneficial norms
for the company.

Contd…
• Bravo, Montaner and Pina (2012) has stated that use of Facebook and Twitter provides
an impressive user base to businesses who are more engaged with e-commerce activities.
It has been witnessed that establishing a strong digital presence by the creation of
personal profiles on all social media hubs guarantees a firm grasp on a wider audience
sector.

Contd…
• Rajagopal (2013) has contended that use of social networking also allows business firm
to have effective communication with customers. It means the communication and
engagement with customers can be advanced effectively if e-commerce businesses are
having appropriate investment on e-commerce.

Contd…
• Sasmita and Suki (2015) has argued that use of social networking might advance the cost
and impact the business activities in negative manner. It means businesses must ensure
about standards properly so that long term opportunities can be attained. However, it is
beneficial for sustainable relationship with customers in order to attain success.

Social media influence on customer
behaviour/ demand
• Bowen and Ozuem ( 2014), has contended that social media allows customers to have
appropriate research about company and its products. It means transparency in
businesses activities can be advanced with a use of social media.

Contd…
• Sasmita and Suki (2015) has said that before making purchase the customer can attain
review about products in order to ensure about quality. It build trust among customers
and attract them towards company.

Contd…
• According to Bravo, Montaner and Pina (2012), customers can also provide complain to
organisations about defects in products. It allows businesses to resolve issues and offer
better satisfaction level to customers.

Contd…
• Sasmita and Suki (2015) has stated that consumer loyalty is also a critical issue which
can also be resolved with an assistance of social media. It impacts positively on the
customer satisfaction and lead business to impressive level of success.

References
• Bowen, G. and Ozuem, W., 2014. Computer-Mediated Marketing Strategies: Social
Media and Online Brand Communities. IGI Global.
• Bravo, R. Montaner, T. and Pina, M. J., 2012. Corporate brand image of financial
institutions: a consumer approach. Journal of Product & Brand Management.
21(4) .pp.232 – 245.
• Rajagopal., 2013. Managing Social Media and Consumerism: The Grapevine Effect in
Competitive Markets. Springer.
• Sasmita, J. and Suki, M. N., 2015. Young consumers’ insights on brand equity: Effects
of brand association, brand loyalty, brand awareness, and brand image. International
Journal of Retail & Distribution Management. 43(3) .pp.276 – 292.