Social Media Advertisement Impact on Consumer Behavior: Australia

This literature review investigates the impact of social media advertising on consumer purchasing behavior within the Australian fashion industry. It highlights the shift in marketing power to consumers through social media, enabling information exchange and comparative product studies. The review acknowledges the increasing trend of online fashion purchases in Australia and examines how social media ads influence consumer decision-making processes. It delves into the role of digital marketing, social networking, and mobile technologies in shaping consumer behavior, emphasizing the importance of transparency, accessibility, and consumer reviews. The research also considers sociological perspectives, globalization, and the rise of social networking platforms in influencing fashion consumption. Ultimately, the review aims to provide insights for businesses on leveraging social media advertising to enhance sales and influence consumer choices while also addressing potential drawbacks and societal impacts.

INSTITUTIONAL AFFILIATION(S)
BUSINESS RESEARCH
Impact of social media advertisement on purchasing behavior of consumers:
A case study of the fashion industry in Australia
STUDENT NAME
[Pick the date]

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Table of Contents
INTRODUCTION.................................................................................................................................3
PROJECT OBJECTIVE...........................................................................................................................4
PROJECT SCOPE.................................................................................................................................4
LITERATURE REVIEW..........................................................................................................................5
RESEARCH GAP................................................................................................................................10
CONCLUSION...................................................................................................................................11
REFERENCES....................................................................................................................................12

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INTRODUCTION
The appearance of web is the most astonishing development in the history of trade
and commerce. With the evolution of social media, this revolution in digitalisation had
affected the traditional marketing systems in the marketplace situated worldwide. The era of
social marketing and advertising has changed the meaning of relationship between
stakeholders and the marketers by shifting the powers in the hands of consumers (McCarthy,
n.d.). According to Ertemel and Ammoura (2016), democracy is allowed in social media
marketing as consumers can come in contact with each other by exchanging information
about the product especially at the time of making purchases. Moreover, advertisements
educate consumers about new products for which they may or may not desire. Making choice
between more products is liked by consumers as they can make comparative study through
social media networking sites. Hence, an impact is created on consumer buying behaviour
and with regards to fashion industry in Australia; the online buying trend has been seen
increasing day by day. According to a recent survey, the online spending in fashion products
is 15.7% of the total online market where fashion market takes the third position after
groceries and home wares. The researchers estimate a growth of 26% in the following years
(Levashov, 2016). This shows the changing trend of customers where social media
advertising plays a very significant role.

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PROJECT OBJECTIVE
Acknowledging that online purchaser’s behaviour is a broader topic, to conclude with
one objective at one time is necessary. Therefore, this research has focussed on making a
detailed investigation on impacts of social media advertisements and decision making of
consumers through it. The research objective behind making a literature review is to find out
how the social media advertisements have impacted the decision process along with finding
pitfalls of it that are faced by consumers themselves. This research will analyse Australian
fashion marketing via online advertisements to make this study applicable in practical world.
PROJECT SCOPE
With regards to objectives, the research from consumer’s perspective will be
considered as a suitable approach. The research will also provide assistance to the potential
readers, organisations, in what way they can use social media advertisements for enhancing
sales by influencing consumer’s decision making.

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LITERATURE REVIEW
Social media and fashion industry: From past few decades, development in digital
marketing and social networking has become an important tool used by retailers that have
helped them to reach consumers in a developed way via online retailing. From developed
sales and product enhancement, the initiation of internet and social networking has made
online retailers move faster than before with the help of virtual transaction and ‘dot-com’ era.
Consumers on the other hand have started making more research on internet to compare and
contrast similar products before making online purchasing. The influence of social media
advertisements in social sites may not result in direct transactions but, creates an impression
on consumers mind in regards to purchases. Even they look forward in social sites for
upcoming brands and latest trends through advertisements. Approximately, 169,000
Australian teenagers were found making online purchasing using social media platform. Even
small SME used social sites for business purposes and reported a positive effect including
enhancement in sales. By getting good reviews from customers, the opportunity for making
more advertisements grew that shows a positive sign for fashion retailers in Australia
(Australian Communications and Media Authority, 2011).
Figure: Number of users using social media for making online purchases (Frank, 2017)

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Consumers buying behaviour: consumers in general can be referred as individuals who
consume products after purchasing them. Whereas buyers are the ones who can be individual
or group of people who acts as a mediator between producer and consumer. Consumers
possess a behavioural pattern during purchase process of goods or service in which they
eagerly find cues of latest fashion for fulfilling their needs in setting their perceptions.
Businesses who are incapable of reaching their consumers are the ones who suffer bottleneck
in industry as the consumers without getting enough knowledge, will never buy their product.
Transparency and accessibility of information’s has influenced the decision making process
of consumers and therefore fashion industry needs to examine the hurdles and gaps between
their consumers and latest prospects (K., 2017).
During the purchasing stage, factors that influences consumers are; purchase intensions and
secondly the purchase decision. Other factors may include preferences for particular brand,
utility of the product, purchasers buying capacity, etc. In the entire process, advertisements
undoubtedly influence the consumers and the companies who promote advertisements in the
form of blogs, web page, or in social sites have to anticipate the latest trend. The companies
who have understood the power of advertising latest fashion in social networking sites have
even turned unexpected purchaser making online purchases. After the consumption process,
the next level comes to satisfaction or dissatisfaction in consumers from the purchased
product. The wisdom of choice is evaluated in this process that makes them more confident
whether to make further purchase or not. Whenever consumers experience discord towards
the product or service, their choice becomes devaluated and hence the consumer starts
making alternative searches and others opinions for future purchasing. This triggers the
buying behaviour post purchasing in which consumer decides upon whether to use same
brand or website for more purchases or not. Since there are lot of choices available, the
consumers can choose new frequencies according to their experience. On the other hand,

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satisfied consumers will became comfortable in using specific brand product while making
recommendations to other. These recommendations have shown greater influence over
purchasers and many of new customers even depend on such comments and suggestions
(MIZOBE, 2014).
Changes in communication and globalisation: Sociological perspectives are the key drivers
who dictate consumers behaviour in which, consumption activities creates a communication
process where consumers flaunt their statuses and roles. Most of the purchases made in
fashion are made to create self identity. It can be said that internet and social sites are highly
responsible for such change in attitude of consumers buying behaviour. Fashion industry in
Australia has influenced online shopping where a recent survey showed that ratio of one in
five online purchases are made in fashion products. Growth in upcoming years are expected
to rise significantly as consumers over there feel more comfortable in making online purchase
in foot wares, active wears, fashion accessories, beauty products, etc. Even the metropolitans
are leading there way by rising 18.9% as compared to previous years (Australia Post, 2017).
This shows the way social media advertisements have made changes in consumers buying
behaviour in countries where youngsters are more influenced by it.
The methods in which consumers search for products have also changed in which
consumers compare the review made by other people rather than utilising their own
knowledge. The accessibility of comparative study of different products through ample
sources of information is offered online. While selecting any product, consumers surf’s local
websites but can even opt for foreign countries websites for fast delivery or cheaper rates.
Therefore purchasing foreign products also becomes easy. This shows that how people have
developed their exposures in different reference groups which belong to people spread
globally. Millions of people are united through web who shares their information in the form
of forums, fan clubs, product reviews and recommendation. Whenever any advertisement is

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made and shared in social sites, it is assumed that the person who has shared the
advertisement must have experienced positively out of it. And the chain continues to form
among other group members. In social sites, several groups are created with reference to
consumption of particular product category in which they discuss their experience and latest
trend. These kinds of group are studied by fashion retailers and most of the products are
launched by them according to it. Further they get supported through the reviews made in
groups and the cycle continues (Mittica, 2012).
Social networking: Fashion products can also be referred as luxury when the brand factors
are given more attention. Unlike traditional method of selling and purchasing of branded
products through shops and stores, people now demands more comparative and interactive
marketing approach. Social Medias proves significant here as it has given scope for luxury
and fashion brands to promote themselves in front of consumers through advertisement and
promotions. With growing popularity of social networking sites like Facebook, Twitter,
LinkedIn, etc., the power of consumers can be observed with the rise of fashion brands
advertisements in them. Even the advertisers need to become very specific in their approach
or else any bad remark can shut their brand (Gul et al., 2014). Fashion brands are entitled to
educate their customers regarding latest trends rather than fixing upon specific fashion. By
making changes in their product advertisements occasionally, the customers feel that the
company deals in latest fashion and thus starts believing in them. On the other hand, if a
branded company makes advertisement of particular product repeatedly, consumers get bored
and start ignoring it. Also, the motive of fashion brands shall be to remain alive in customers
view and for that they need to be more creative and innovative. After all, fashion brands
advertisements are not made merely to enhance sales but to keep fashion brands dream alive.
And thus, by getting more visibility in social media, communication between consumers and
brand suppliers becomes easy (Lee, 2013).

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Figure: Money spend on advertisements in social sites (Richter, 2013)
Social media advertisements through mobile phones: According to Irvine (2018), “Rapid
technological developments are continuing to drive change in online retailing”. This
statement was given by a news reporter while making a recent survey in Australian online
marketing related to fashion product. According to the researcher, this trend is expected to
rise in upcoming years as technological developments have changed the habits of consumers
in regards to online purchasing of fashion products (Danlos, 2016). Smartphone have added
competence in revolution along with making consumers more comfortable than before. They
can surf social sites whenever they desire without thinking about surrounding and place via
smart phones. Many applications are even loaded with advertisements in which option of
making purchase is available. Mobile marketing are even more attracting which is the reason
why many companies have implemented mobile marketing strategies in their marketing plans
(Kaushik, 2016).
Overview: The study made on consumers buying behaviour through social media
advertisement represents the craftsmanship, taste and tradition of Australian fashion brands
which also demonstrates social status of the country. For consumers situated in all regions,
responds to social media accounts and thus social sites becomes their primary source of
information on fashion and luxury brands (Pütter, 2017). Advertisements made on Facebook

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shows more response than any other social sites as it allows sharing ideas through comments
and likes which is also capable of making brand famous within no time. Fashion brand
advertisements not only educates consumers about latest trends but also initiates the desire
among them. But, consumers who have limited capacity to buy latest brands can face
degradation from society’s point of view that can even affect their social activities. Ones who
spend more money on latest fashions rule the society whereas others, out of peer pressure
makes purchases above their purchasing capacity. Fashion products may seem necessity for
someone while others nay treat it as luxury. However, the advertisements have influenced the
society as a whole and have made people follow trend whether out of pressure or out of
interest (Mousseaux, 2013).
The consumers harbour important distinctions between brands that make advertisements in
social sites and the ones who interact with them while creating relationship with customers.
Therefore it becomes essential for brands to maintain both the distinct features while making
social media marketing to get response of customers in positive way. Consumers seek honest
and clear information before engaging in purchases or else they might feel discontented.
Negative impact shows that due to few groups and people, larger portion of society can get
influenced regarding any product or company. A customer may like any product while other
one might dislike it but the feeling of both matters a lot to the advertisers (Bond et al., 2010).
RESEARCH GAP
The above study has been made while keeping in mind the consumers perspectives
towards online purchasing in fashion brands. In Australia this trend has been seen increasing
day by day and thus further research on the topic needs to be made from seller’s point of
view. If further research is made from advertiser’s point of view, it will bring a clear picture

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about impacts of social media advertisement as a whole. Further research on age factors also
needs to be studied to find out the effects of social media marketing in different ages and in
what age it influences the most.
CONCLUSION
The changes in consumers buying behaviour have been seen impacting the fashion
companies where they have to change their policies according to the customers. The
advertisers roles have not been limited to make advertisements only, but taking part in social
interactions have also become necessary. The increasing demand for trustworthy data in
fashion industry has made social networking tools very important as they are capable of
instant interaction among consumers. Therefore it becomes essential for advertisers to
maintain correct information in their content or else adverse affects are predictable. While
this study have made a research on fashion industry in Australia, it can conclude by saying
that Australian fashion market needs to take social media marketing more critically by
expanding their business in other countries also. Presently, all fashion brands of Australia are
not available in global online market, although it has great potentiality in it. According to the
research it can be said that social media advertisements have great influence on purchasing
behaviour of consumers and opportunity of it shall be utilised by fashion industrialists.

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REFERENCES
Australia Post, 2017. Inside Australian Online Shopping. [Online] Available at:
https://acquire.startrack.com.au/pdf/Inside%20Australian%20Online%20Shopping
%202017.pdf [Accessed 24 April 2018].
Australian Communications and Media Authority, 2011. Communications report 2010–11
series Report 1—E-commerce marketplace in Australia:Online shopping. [Online] Available
at: http://workspace.unpan.org/sites/internet/documents/B6AU11%20E-commerce
%20Marketplace%20in%20Australia%20Online%20Shopping.pdf [Accessed 24 April 2018].
Bond, C., Ferraro, C., Luxton, S. & Sands, S., 2010. Social Media Advertising: An
Investigation of Consumer Perceptions, Attitudes, and Preferences for Engagement. [Online]
Available at: https://researchbank.swinburne.edu.au/file/1618f811-57be-4b51-8a60-
c1eedd6b3e9c/1/PDF%20%28Published%20version%29.pdf [Accessed 24 April 2018].
Danlos, M., 2016. Social Media and Fashion:How people can influence marketing
strategies? [Online] Available at:
https://www.theseus.fi/bitstream/handle/10024/124066/Danlos_Maurane.pdf?
sequence=1&isAllowed=y [Accessed 24 April 2018].
Ertemel, A.V. & Ammoura, A., 2016. THE ROLE OF SOCIAL MEDIA ADVERTISING IN
CONSUMER BUYING BEHAVIOR. [Online] Available at: http://oaji.net/articles/2017/2748-
1485002365.pdf [Accessed 24 April 2018].
Frank, 2017. Social Media Statistics Australia- August 2017. [Online] Available at:
http://frankmedia.com.au/2017/09/01/social-media-statistics-australia-august-2017/
[Accessed 24 April 2018].