Literature Review on the Impact of Social Media on Online Shopping

This literature review explores the empirical evidence surrounding the influence of social media on online shopping behavior. It examines the advantages of social media advertising, focusing on brand awareness and reputation, and how these factors impact customer purchasing decisions. The review delves into various customer behaviors, including complex, variety-seeking, dissonance reduction, and habitual buying patterns, as they relate to online shopping. Furthermore, it analyzes the impact of social media on the customer decision-making process, from need recognition and information research to the evaluation of alternatives, purchase decisions, and post-purchase behavior. The review identifies gaps in existing literature and provides a comprehensive overview of the current understanding of the relationship between social media and online consumerism, emphasizing the strategic role of social media in modern marketing.

Running Head: LITERATURE REVIEW
LITERATURE REVIEW
Name of the Student:
Name of University:
Author Note:

1LITERATURE REVIEW
Table of Contents
Overview.........................................................................................................................................2
Conceptual framework.................................................................................................................2
Advantages of social media advertisements............................................................................3
Online shopping behaviour of customers..................................................................................5
Complex buying behaviour......................................................................................................5
Variety-seeking buying behaviour..........................................................................................6
Dissonance reduction buying behaviour...............................................................................6
Habitual buying behaviour.......................................................................................................7
Impact of social media on online shopping...............................................................................7
Need recognition.......................................................................................................................8
Information research.................................................................................................................8
Evaluation of alternatives.........................................................................................................8
Purchase decision.....................................................................................................................9
Post purchase decision............................................................................................................9
Literature gap...............................................................................................................................10
Summary......................................................................................................................................10
Reference.....................................................................................................................................11

2LITERATURE REVIEW
Social media advertising
Need recognition
Information research
Alternative products
Purchase decision
Post-purchase decision
Shopping behavior of customers
Overview
This literature review is trying to elucidate the empirical evidences on the given
topic. The purpose of this chapter is to facilitate a justification for the theme of the
research with the help of the empirical evidences and peer reviewed journals. Both the
independent and the dependant variables are included into the discuss in reference to
find the existing perception of those variables and set a logical explanation of the
variables so that it will be effective to carry forward the research properly. The literature
review also helps the research in the analysis chapter where the researcher can use the
logical arguments of the empirical evidences with the findings of the research.
Conceptual framework

3LITERATURE REVIEW
Advantages of social media advertisements
Brand awareness is identified as one of the important aspect that attracts the
customers to a great extent. Brand awareness is more like a brand recognition process
to attract large number of customers. Sasmita and Mohd Suki (2015) articulated that the
brand awareness provides a long term value for the products. As a result of that it
becomes a tool for the business companies to fix the advertisements effective enough
to maximise customers. Moreover, Barreda et al. (2015) tried to point out the
importance brand awareness by stating that brand awareness instilled trust in the
audience and consumers so that they will get attracted by the brand and decide to
purchase the product. However, the role of the social media in this regard is considered
to be an important aspect. Shabbir, Khan and Khan (2017) stated that the business
organisations were currently using social media as the most exclusive mechanism to
increase the brand awareness. One of the major reason is that most of the people are
using social media in their daily life. As a result of that promoting the brand in social
media platform will definitely get potential customer base as they can get the details of
the product and able to compare it with other products. The popularity of the product
can be hiked rapidly through the social media promotion.
Popularity of a product is not enough for the customers to get intrigued and buy
it. The reputation of the brand and its popularity are also identified as great concern for
the customers who like to make purchase decisions on the basis of brand reputation.
However, a well reputed brand must have strong customer base and enough reputation
in the market. As Han, Nguyen and Lee (2015) advocated that brand reputation defines
the goodwill of the brand among the customers or within the market. While

4LITERATURE REVIEW
understanding the purchasing decision of the customers Alwi, Ali and Nguyen (2017)
highlighted that a specific trend among the customers to go for reputed brand. It makes
them highly satisfied to purchase a good quality product because they believe and trust
on the organisation. However, for a new purchaser it is very critical to decide which
brand is the most trusted. It is possible that verbal promotion can be possible but
reaching to the exact customer is a possible phase. Therefore, the targeted customers
can easily get attracted through the social media. One of the most interesting
advantages of using social media as an advertisement tool is that the customers can
easily get information about a brand with the review and feedback columns of the
company. It will provide them enough information regarding the background and past
history of the company with its customer relationship. A good review definitely brings
confidence among the customers and influence their purchasing behaviour through
social media. Along with this, direct interaction with the manufacturer is also possible for
the customers through social media. According to Foroudi (2019) the use of direct
interaction through chat by the service and manufacturing companies is surely an
important aspect for business. It can be stated that the purpose of the direct interaction
with the customers is to incorporate the customers into the business practice.
Therefore, the confidence and the perception of the customers about the company or
the brand will be revived and a positive relationship between the customers and the
organisation can easily be formulated. From the research of Sengupta, Balaji and
Krishnan (2015) it can be argued that direct chatting with the customers can also be
created through the official website of the organisation. Nevertheless, social media

5LITERATURE REVIEW
plays a unique role with the characteristics of cost effectiveness. Therefore, social
media can be used as a strategic tool for the business corporations.
Online shopping behaviour of customers
The online shopping behaviour of the customers are dynamic and based on a
number of factors. According to Pappas et al. (2016) social media is defined as one of
the influential aspects for the online shoppers. Based on this influence, it can be stated
that there are four types of customer behaviour can be identified by the influence of
social media. Complex buying behaviour, variety-seeking buying behaviour, dissonance
reduction buying behaviour and the habitual buying behaviour are the four key type of
customer buying behaviour.
Complex buying behaviour
According to Mallapragada, Chandukala and Liu (2016) the complex buying
behaviour is associated with the high buying process of the customers. It means there
are certain number of customers who like to gather information about the product before
making decision to purchase it. Therefore, the product specification and functions are
very important to them. Moreover, there is other features that the complex buying
behaviour of a customer can be seen. Chen et al. (2015) advocated that the long term
goals of the customers with high value on the product is considered to be most valuable
objective for the complex buyers. As a matter of fact, this kind of buying behaviour can
be created due to the presence of a number of different brands in the market and
intense competition among them.

6LITERATURE REVIEW
Variety-seeking buying behaviour
The variety seeking buying behaviour of the customers depends on the less
involved purchasing trend of the customers. In other words, Demarque et al. (2015)
argued that there are certain customers who are not fond of buying product with the
detailed information of the product. Rather they are moved by the buying practice where
the product provides variety of service. Therefore, the uniqueness of the product
becomes important to them rather than its efficiency. This kind of customers has low
involvement in the buying process as they are looking for the unique products only. As a
matter of fact, the difference between brands is also less important for the variety
seeking buying behaviour of the customers as they are more intrigued by the unique
service of the product.
Dissonance reduction buying behaviour
One of the important feature of the dissonance reduction buying behaviour of the
customers can be identified as high level of customer involvement in the process of
buying same type of products. It means the customers of this type are looking for same
products provided by two different companies. Then the customers will compare both
the companies on the basis of its quality, popularity and the price. Similar product from
different countries make the customers to have a wide range of options but lack of
uniqueness in the product makes this type of buying behaviour very traditional and rigid.
Therefore, Bilgihan (2016) stated that brand value and brand awareness are played
most effectively in this kind of purchasing attitude because the customers become a
loyal consumer of the company. For the easy available products, this kind of customer
attitude can be identified.

7LITERATURE REVIEW
Habitual buying behaviour
The habitual buying behaviour of the customers can be seen in case of
purchasing day to day product. In this kind of purchasing behaviour, the customers are
very much stick with their particular brand despite of having a number of other
companies with the same product. Xu-Priour, Cliquet and Palmer (2017) defined that
this particular nature of the customers was basically made of their habit of buying the
product with a specific product value. No such willingness to explore new products or
brand cannot be seen in this type of product. Bilgihan, Kandampully and Zhang (2016)
articulated that the habitual buying behaviour of the customers creates low involvement
in the purchasing attitude. The reason is that the customers do not buy product excess
to their demands. Therefore, the market demand is steady and linear in this kind of
product manufacturing.
Impact of social media on online shopping
The purchasing decision of the customers is associated with a number of
important aspect and followed by a step by step practice where each of the step is
highly closed with the next step. It is a general layout of the customer decision making
where the customers are followed a five steps process from need recognition to post
purchase decision. In this regard, the relationship between the customer purchasing
decision making processes with the social media is going to be evaluated so that the
researcher can get a clear picture of the link between social media and the purchasing
decision making of the customers.

8LITERATURE REVIEW
Need recognition
According to Xie and Lee (2015) need recognition is resembled with the extreme
urge of the customer to buy that specific product. As a result that it is necessary for the
customer to identify the needs and behave such a way that the desired needs of the
customers will be fulfil properly. Therefore, it is important for the customer to highlight
and prioritise his needs at first. Henceforth, the role of the social media is to boost up
the urge or the demand of the customer in such a way that it drives him to buy the
product. Henceforth, it can be stated that social media plays a pivotal role in order to
influence the customers to a great extent.
Information research
Based on the need recognition, it is the next phase of the customer decision
making process to gather information about the product as far as he can. Wang and Yu
(2017) advocated that the specification of the product is a concerned matter for many of
the customers. They are specifically buy a product after go through its specification. In
this regard, information about the product is crucial for buyers to determine that the
product fits with their demands or not. The use of social media makes it easier for the
customers to get the information properly. Moreover, information regarding the review of
the other purchaser is also defined as an important determinant for the customers
before purchasing a product (Wang and Yu 2017). Therefore, social media definitely
plays significantly in getting enough information about the product.

9LITERATURE REVIEW
Evaluation of alternatives
Price, quality and service are also pertinent aspects for the customers in order to
purchase a specific product. The alternative products are also entitled to satisfy the
needs and requirements of the customers. Henceforth, customers are always looking
for alternative products that provides them more satisfaction in compare to the actual
product (Chen, Lu and Wang 2017). However, it is not possible for the customers to get
enough knowledge about the alternative products. Therefore, the social media comes to
the forefront where many users post their reviews and enough information with links
from which the customer can pursue towards the alternative products. In this regard,
social media acts as a guiding source for the customers where they can get enough
information as per their need (Yan et al. 2016).
Purchase decision
The above process will deliver a positive vibe towards the customer that
enhances the confidence of the customer to purchase the product. According to Ansari
et al. (2019) it can be stated in this stage the consumer arrives at a logical conclusion to
buy the product. The function of social media in this phase is to assist the customer to
find an easy gateway for payment. In the social media sites, the companies share their
link to purchase and payment. It makes the entire process easier for the buyer as the
entire process takes just a few minutes and successfully placed the order through online
channels.

10LITERATURE REVIEW
Post purchase decision
In the post purchase decision, the satisfaction of the customer and his evaluation
of the product has been comprised. The evaluation confirms that whether the product is
useful for the customer or not. Therefore, both the negative and positive reaction of the
consumer are identified in the post purchase decision phase (Hajli et al. 2017).
According to Godey et al. (2016) the social media is the right platform for the customer
to share their experience with the product so that next buyers will get influenced and
purchase the product. The companies are intentionally used the social media platforms
so that a positive promotion can be facilitated without bearing little amount of costs.
Literature gap
Despite of having an in-depth analysis about the relationship between the
consumer behaviour and influence of social media, there are certainly a number of gaps
that the literature review is facing. First of all, it can be stated that not any of the
literature is company based that will provide more insights into the matter. It is a
significant limitation of the literature review. Moreover, it is also true that there is no
mention of fashion industries as case study that pushes the researcher to conduct this
research. It creates further research opportunity into the prescribed subjects in future.
Summary
This literature review effectively discussed the role of the social media in the
process of influencing the customers positively. The impact of social media in every
steps of customer decision making process significantly creates more importance of this

11LITERATURE REVIEW
research where the researcher tries to analyse the impact of social media in the context
of online shoppers in fashion industry. Moreover, identifying different types of customers
also helps the literature review to support the research findings further. Therefore, it can
be concluded that the literature review is highly relevant with the research and rational
enough to support the research in discussion chapter.

12LITERATURE REVIEW
Reference
Alwi, S.F.S., Ali, S.M. and Nguyen, B., 2017. The importance of ethics in branding:
Mediating effects of ethical branding on company reputation and brand loyalty. Business
Ethics Quarterly, 27(3), pp.393-422.
Ansari, S., Ansari, G., Ghori, M.U. and Kazi, A.G., 2019. Impact of Brand Awareness
and Social Media Content Marketing on Consumer Purchase Decision. Journal of Public
Value and Administration Insights, 2(2), pp.5-10.
Barreda, A.A., Bilgihan, A., Nusair, K. and Okumus, F., 2015. Generating brand
awareness in online social networks. Computers in human behavior, 50, pp.600-609.
Bilgihan, A., 2016. Gen Y customer loyalty in online shopping: An integrated model of
trust, user experience and branding. Computers in Human Behavior, 61, pp.103-113.
Bilgihan, A., Kandampully, J. and Zhang, T., 2016. Towards a unified customer
experience in online shopping environments: Antecedents and outcomes. International
Journal of Quality and Service Sciences, 8(1), pp.102-119.
Chen, A., Lu, Y. and Wang, B., 2017. Customers’ purchase decision-making process in
social commerce: a social learning perspective. International Journal of Information
Management, 37(6), pp.627-638.
Chen, Y., Yan, X., Fan, W. and Gordon, M., 2015. The joint moderating role of trust
propensity and gender on consumers’ online shopping behavior. Computers in Human
Behavior, 43, pp.272-283.

13LITERATURE REVIEW
Demarque, C., Charalambides, L., Hilton, D.J. and Waroquier, L., 2015. Nudging
sustainable consumption: The use of descriptive norms to promote a minority behavior
in a realistic online shopping environment. Journal of Environmental Psychology, 43,
pp.166-174.
Foroudi, P., 2019. Influence of brand signature, brand awareness, brand attitude, brand
reputation on hotel industry’s brand performance. International journal of hospitality
management, 76, pp.271-285.
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.
Hajli, N., Sims, J., Zadeh, A.H. and Richard, M.O., 2017. A social commerce
investigation of the role of trust in a social networking site on purchase
intentions. Journal of Business Research, 71, pp.133-141.
Han, S.H., Nguyen, B. and Lee, T.J., 2015. Consumer-based chain restaurant brand
equity, brand reputation, and brand trust. International Journal of Hospitality
Management, 50, pp.84-93.
Mallapragada, G., Chandukala, S.R. and Liu, Q., 2016. Exploring the effects of
“What”(product) and “Where”(website) characteristics on online shopping
behavior. Journal of Marketing, 80(2), pp.21-38.

14LITERATURE REVIEW
Pappas, I.O., Kourouthanassis, P.E., Giannakos, M.N. and Chrissikopoulos, V., 2016.
Explaining online shopping behavior with fsQCA: The role of cognitive and affective
perceptions. Journal of Business Research, 69(2), pp.794-803.
Sasmita, J. and Mohd Suki, 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.
Sengupta, A.S., Balaji, M.S. and Krishnan, B.C., 2015. How customers cope with
service failure? A study of brand reputation and customer satisfaction. Journal of
Business Research, 68(3), pp.665-674.
Shabbir, M.Q., Khan, A.A. and Khan, S.R., 2017. Brand loyalty brand image and brand
equity: the mediating role of brand awareness. International journal of innovation and
applied studies, 19(2), p.416.
Wang, Y. and Yu, C., 2017. Social interaction-based consumer decision-making model
in social commerce: The role of word of mouth and observational learning. International
Journal of Information Management, 37(3), pp.179-189.
Xie, K. and Lee, Y.J., 2015. Social media and brand purchase: Quantifying the effects of
exposures to earned and owned social media activities in a two-stage decision making
model. Journal of Management Information Systems, 32(2), pp.204-238.
Xu-Priour, D.L., Cliquet, G. and Palmer, A., 2017. The Influence of Buyers’ Time
Orientation on Online Shopping Behavior: A Typology. International Journal of
Electronic Commerce, 21(3), pp.299-333.

15LITERATURE REVIEW
Yan, Q., Wu, S., Wang, L., Wu, P., Chen, H. and Wei, G., 2016. E-WOM from e-
commerce websites and social media: Which will consumers adopt?. Electronic
Commerce Research and Applications, 17, pp.62-73.