Literature Review Report: HI6008 Business Research Project

This report presents a comprehensive literature review on the influence of social media advertising on consumer buying behavior. It begins with an introduction to the research problem, research questions, and the concept of social media advertising. The report explores different types of social media advertisements, including Facebook, Instagram, YouTube, and Twitter, and their respective roles in influencing consumer behavior. It defines buying behavior and examines the various factors that affect it, such as marketing campaigns, economic conditions, personal preferences, group influences, and purchasing power. Furthermore, the report discusses different models of consumer buying behavior, including the Bettman information-processing model and the Nicosia model. Finally, it analyzes the effects of social media advertising on buying behavior, summarizing the key findings and providing a list of references. The report is a valuable resource for understanding the complex relationship between social media and consumer purchasing decisions.

Running head: BUSINESS RESEARCH
Business Research
Name of the student
Name of the university
Author Note

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Table of Contents
Opening statement......................................................................................................................2
Research problem...................................................................................................................2
Research question...................................................................................................................2
Concept of social media advertisement......................................................................................2
Different type of social media advertisement............................................................................3
Concept of buying behaviour.....................................................................................................4
Factors affecting buying behaviour............................................................................................5
Models of consumer buying behaviour......................................................................................7
Effects of social media advertising on buying behaviour..........................................................8
Summary....................................................................................................................................9
Reference..................................................................................................................................10
Appendix..................................................................................................................................13
Team charter.........................................................................................................................13

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Opening statement
Research problem
The research problem associated with the topic includes managing the expectations of
the customers by using social media channels that includes significant and effective
challenges that exists in while using social media. As observed by Dwivedi, Kapoor and
Chen (2015) the buying behaviour of the customers can vary depending on the manner in
which success of the marketing components of the customers can be undertaken. Therefore, it
can be said that the research problem helps in understanding the effective as well as
impertinent use of social media in the modern business world. The effectiveness of the
application can be considered to identify the various components of the purchase behaviour
associated with the customers.
Research question
The research questions associated with the understanding of the topic includes:
 How does social media advertising influence the buying behaviour of consumers?
 What are the different elements of social media advertising?
 What are the various components of the purchase behaviour of the consumers?
Concept of social media advertisement
In the modern world, social media advertisement plays an important role in
influencing the changes in the behaviour of the people. At the same time, as stated by Tuten
and Solomon (2017) social media advertisements provide opportunities for users to create
and share the contents and experience of the people with others. Therefore, in the words of
Sajid (2016) any promotion or critique related to a product or service can be provided via

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social media advertisements and at the same time, help in establishing a proper relation with
the customers. In this regard, from the analysis of Ashley and Tuten (2015) it can be said that
the advent of social media and its application in the market, can have a negative impact on
the development of buying behaviours among the customers. Thereby, the different types of
social media advertisements are taken into consideration to understand the concept.
Different type of social media advertisement
Social media advertisements need to be provided via the use of social media websites
and networks. In the words of Dahl (2018), the most common types of social media networks
that can be used for advertisements include Facebook, Instagram, YouTube and Twitter.
These assist in providing different modes of advertisement that can be used for gaining the
trust of the customers as well as understanding the buying behavior pattern that exists with
the customers.
Facebook: It is one of the most used as well as preferred social media website if
compared with all other social media websites. As observed by Keegan and Rowley (2017)
the popularity of social media has been high since the launch of Facebook in 2004. The
website is used for social networking and for maintaining a strong connection with the
people, which can be beneficial for the development relationship with the customers. The
application of Facebook as a social media advertisement can help in maintaining effective
communication with the customers due to advantages in terms of networking that is provided.
Instagram: In the modern world, Instagram has attained a high growth rate in terms
of popularity among internet surfers. Instagram is an effective platform for the promoting
new advertisements via photo sharing. As stated by Pappas (2016) the application of
Instagram can be of advantage mainly because customers can view the things that they are
supposed to purchase. Therefore, as stated by Khare (2015) the application of Instagram as a

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social media advertisement platform can be considered as a strategic advantage and for
understanding the reactions that customers provide before and after purchasing a particular
product. Thus, Instagram can be concluded as one of the best social media advertisement
media in the market.
YouTube: YouTube is mainly used for sharing videos via the online platform.
Youtibe is one of the social media sites that are in existence for a long time. Therefore, as
stated by Badgaiyan and Verma (2015) the longevity makes up for this being an important
site for social media advertisements in terms of sharing video related to manufacturing of a
product or any new product in the market. Therefore, from the words of Jain et al. (2018) it
can be said that the application of YouTube as a social media advertisement process can be
considered as effective only if videos are being preferred as a mode of promotion.
Twitter: Twitter as a social networking site consists of a significant number of
followers. The assistance provided by Twitter is unique as it provides value to its users in
terms of opinion as well as promotion of a product. According to Visser, Schoormans and
Vogtländer (2018), the micro blogging can be considered as one of the most important
aspects that help in the development of Twitter and thus, advocates various celebrities for
endorsement of a product. As stated by Desai and Mistry (2017) the application of Twitter
can also help in maintaining connection with the people all over the world and help in
maintaining the loyalty of the customers.
Concept of buying behaviour
Buying behaviour refers to the sum total of attitudes as well as preferences regarding
customer behaviour based on the purchase of products and services in a market. According to
Felix, Rauschnabel and Hinsch (2017), buying behaviour is also considered as the decision
undertaken that helps in facilitating decision-making process and acts on the perception of the

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people and the customers. Therefore, from the words of Godey et al. (2016) it can be said that
the buying behaviour helps in understanding the mentality of the customers along with the
factors that influence it. As stated by Stephen (2016) it provides the customers with a need
for recognition and search relevant information before making an investment in the
evaluation of alternatives. According to Leung, Bai and Stahura (2015), it is highly affected
by purchase and post-purchase decisions. The understanding of the buying behaviours of the
customers can be made by analysing the models that can be associated with it.
Factors affecting buying behaviour
Some of the factors that affect the buying behaviour of the customers include:
Marketing campaign: Advertisement plays an important role while influencing the
buying behaviour. According to Ramya and Mohamed Ali (2016), they even provide great
shift in the market share and ensure that the competitive industries can be influenced by the
purchase decisions undertaken by customers. As stated by Mihaela (2015) the regularity of
the marketing campaigns can help customers in identifying the purchasing decisions so that it
can help in reminding the customers about the advantages that can be gained from the
purchase of a product. Therefore, the marketing campaign is important for identifying the
buying behaviour of the customers.
Economic condition: The decision to spend is influenced by the economic situation
that exists in a country. According to Tung and Carlson (2015), the economic condition
provides for an understanding of the personal preferences so that purchases can be made as
per the economic condition and by balancing the income and expenditure. In this regard, from
the analysis of Kumar and Dash (2015) it can be said that for the development of an economy
the influence provided for customers can be taken into consideration. Thus, the economic

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condition of the customers can be influenced by the ability of the customers to purchase
various products.
Personal preferences: The influence of customer behaviour is done by the various
manners of likes and dislikes. According to Tuten and Solomon (2017), these preferences
vary in terms of industries and at the same time, take into account any form of personal view
and opinion for customers. As stated by Sajid (2016) this pertains to the style so that
dominant and influencing factors based on personal development can take place. In this
regard, it can be said that the purchase preferences have a greater influence in the final
purchasing ability of the customers and thus can have a proper ability for the proclamation of
business.
Group influence: The group influence can be considered as a major factor that affects
the decisions made by customers. According to Felix, Rauschnabel and Hinsch (2017), the
group decisions normally consists of the family members, neighbours as well as friends that
may play a big role in the development of customer satisfaction in the market. In this regard,
as stated by Godey et al. (2016) it can be said that purchase decisions of customers can have
a superior influence in terms of deciding upon the products that are required to be purchased
based on economic condition as well as purchase power of the people.
Purchasing power: The customer behaviour is also influenced by the purchasing
power of the customers. According to Stephen (2016), general analysis of the purchasing
capacity of the customers can be further influenced by undertaking buying or purchase
decisions that may fail to meet the purchasing ability of the buyers. Therefore, from the
words of Leung, Bai and Stahura (2015) it can be said that segmentation of customers based
on the purchasing power can be done to understand the results obtained and ensure that its

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influence can have a superior effect for the advent of understanding the purchase behaviour
of customers.
Models of consumer buying behaviour
In order to understand the concept of buying behaviour along with its influential
factors, it is necessary to understand the models that can help in the development of its
concepts. As observed by Kumar and Dash (2015) one of models that can be associated with
the buying behaviour of the customers includes the Bettman information-processing model.
According to Tuten and Solomon (2017), the model subscribes to a distinctive cognitive
information-processing point of view. Sajid (2016) is of the opinion that this defines the
inability of the customers to undergo complex analysis while facing choices based on the
suitable product needed to be chosen. As stated by Ashley and Tuten (2015) the
simplification of the decisions ensures that customers gain choices in terms of side stepping
as well as overburden of tasks.
At the same time, from the analysis made by Felix, Rauschnabel and Hinsch (2017) it
can be said that the application of another model Nicosia model can be used to understand the
interrelationships that exist between the customers as well as the decision-making models of
the customers. In the words of Godey et al. (2016), the marketing communication associated
with the feedback received from the customers can be used to promote an organisation as
well as the brand image of a product. According to Stephen (2016), the application of this
model, helps in influencing customers via marketing actions and ensure that customers return
the influence that are organised via the purchase actions. Thus, as pointed out by Leung, Bai
and Stahura (2015) it can be said that the application and choice of this particular model can
help in analysing the influential factors of the customers.

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These two models help in pioneering the influence that external and internal factors in
a business environment influence the purchase behaviour of the customers. According to
Dwivedi, Kapoor and Chen (2015), it is necessary to ensure that development as well as
application of the models help in ensuring that customer satisfaction is maintained, and that
the effects of social media influence the buying behaviour as well. Thus, it can be said that
the overall impact of the models can be traced back to the practical application as well as the
genuine impact it may have on the buying behaviour.
Effects of social media advertising on buying behaviour
In the modern world, social media advertising plays an important role in trying to
influence the purchase decisions that are made by the customers. According to Dwivedi,
Kapoor and Chen (2015), social media have grown immensely and have a powerful impact
on the manner in which branding as well as innovation can be influenced. As stated by Dahl
(2018) customer satisfaction and the behaviour of the customers have had a high impact on
the business transactions mainly because of the influence of social media advertisement.
Therefore, in the words of Keegan and Rowley (2017) the factors identified had been
rendered as ineffective as customers prefer to make decisions based on the contents shown in
the advertisements.
In this regard, as stated by Pappas (2016) it can be said that the effects of the social
media can be positive for marketers. According to Khare (2015), the advantage provided by
the social media can be considered as fruitful for the marketers mainly because it can help to
understand the purchasing power of the customers. Badgaiyan and Verma (2015) stated that it
could also help to understand the manner in which each of the factors can be influenced and
analysed based on the ability to make effective purchases. Thus, as pointed out by Jain et al.

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(2018) the social media advertisement is a way to understand the feedback of the customers
so that improvement of the product can be made.
Therefore, from the analysis, conclusion can be drawn about the positive impact that
social media has and on the buying behaviour. According to Visser, Schoormans and
Vogtländer (2018), each of the elements in the social media marketing can be influenced by
the manner in which the customers perceive to view the products. In this case, from the
analysis of Desai and Mistry (2017) it can be said that for the success of business, it is
necessary that social media advertisements be used for the development of the economy as
well as for enhancing customer satisfaction in the market. In this regard, analysis of Ramya
and Mohamed Ali (2016) states that for the development of customer satisfaction as well as
influencing the buying behaviour, social media advertisement plays a significant role for
enhancing customer loyalty.
The analysis implies that the buying behaviour of the customers can be predicted by
the social media advertisement and it can help in the development of a company. According
to Mihaela (2015) without effective analysis of the market at hand, it can be difficult for
gaining popularity and earning the trust of the customers. As observed by Tung and Carlson
(2015) from the point of view of the customers, social media advertisement can ensure that
each of the demand of the customers are met and that the customers can identify the
necessary changes that exist in the market. Thus, the overall effect of social media
advertisement on the buying behaviour of the customers can be considered as influential as
well as positive (Dahl 2018).
Summary
As a summary, it can be said that in order to understand the buying behaviour of the
customers, the application of social media can be used for understanding the significance.

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The effects that social media has in the modern world can be attributed to the changing
demand of the customers. The application of models related to the customer buying
behaviour can be highlighted to understand the significance of the study and at the same time,
ensure that every aspect associated with social media advertisement can be considered as one
of the most important developments for understanding the buying behaviour.

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Reference
Ashley, C. and Tuten, T., 2015. Creative strategies in social media marketing: An exploratory
study of branded social content and consumer engagement. Psychology & Marketing, 32(1),
pp.15-27.
Badgaiyan, A.J. and Verma, A., 2015. Does urge to buy impulsively differ from impulsive
buying behaviour? Assessing the impact of situational factors. Journal of Retailing and
Consumer Services, 22, pp.145-157.
Dahl, S., 2018. Social media marketing: Theories and applications. Sage.
Desai, P. and Mistry, S.H., 2017. A Study Of Influence Of Demographic Factors On
Consumer Impulse Buying Behaviour. Sankalpa, 7(1), pp.35-42.
Dwivedi, Y.K., Kapoor, K.K. and Chen, H., 2015. Social media marketing and
advertising. The Marketing Review, 15(3), pp.289-309.
Felix, R., Rauschnabel, P.A. and Hinsch, C., 2017. Elements of strategic social media
marketing: A holistic framework. Journal of Business Research, 70, pp.118-126.
Godey, B., Manthiou, A., Pederzoli, D., Rokka, J., Aiello, G., Donvito, R. and Singh, R.,
2016. Social media marketing efforts of luxury brands: Influence on brand equity and
consumer behavior. Journal of business research, 69(12), pp.5833-5841.
Jain, V., Tripathi, S., Ganesh, B.E. and Sheth, J.N., 2018, May. Internet Addiction and Its
Impact on Consumer’s Buying Behaviour: A Conceptual Framework: An Abstract.
In Academy of Marketing Science Annual Conference (pp. 393-394). Springer, Cham.
Keegan, B.J. and Rowley, J., 2017. Evaluation and decision making in social media
marketing. Management Decision, 55(1), pp.15-31.