The Influence of Social Media on Consumer Buying Decisions in Retail

This research project investigates the influence of social media on consumer buying decisions within the retail industry, focusing on Marks and Spencer. The report begins with an introduction outlining the research question, objectives, and hypothesis, followed by a literature review exploring consumer behavior, online communication platforms, and their impact on purchasing decisions. The methodology section details the research philosophy, approach, techniques, data collection methods, and sampling strategies employed. The findings are presented through survey data analysis, revealing consumer perceptions of online platforms and their influence on shopping experiences. The study concludes with recommendations and references, providing a comprehensive analysis of social media's role in shaping consumer choices in the retail sector. The research utilizes both primary and secondary data collection methods, including surveys from 30 customers of Marks and Spencer. The report also includes a Gantt chart outlining the time-scale of research activities.

RESEARCH PROJECT

Table of Contents
INTRODUCTION...........................................................................................................................4
1.1 Background of research area in form of question, objective and hypothesis........................4
1.2 Statement of the rationale and reasons for choosing the research project............................5
1.3 Literature review for the research specification....................................................................5
1.4 Research methodology..........................................................................................................7
1.5 Time-scale of research Activities..........................................................................................8
Part – 2 ..........................................................................................................................................10
INTRODUCTION ........................................................................................................................11
TASK 1 : UNDERSTANDING FORMULATION OF RESEARCH SPECIFICATION............11
1.1 Background of the research ................................................................................................11
1.2 Literature review for the research description ...................................................................12
1.3 Research methodologies .....................................................................................................13
TASK 2 : Implementation and evaluation of the research project ................................................15
2.1 Collecting and recording relevant information and data ....................................................15
Conclusion ....................................................................................................................................18
Recommendation ..........................................................................................................................19
REFERENCES..............................................................................................................................20
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INTRODUCTION
In the present time, technology has been advanced and useful in every business
enterprises as well as individual life. Through technological development, within organisation
drastic changes has been occurred. In order to influence the customers for purchasing, several
corporation uses effective technology and marketing. In this manner, social media is one of the
tool that have great impact upon the individual as well as organisation.
Consumer behaviour and choice is very sensitive as they influence through many things
like environment, price factor, their requirement, demographic factor etc (Liu and Zhenhua,
2003). Social media is one of the platform that can hugely affect the choice and decision of
customers regarding product and services. In the current study, the analysis of social media and
its impact on the people buying decisions in respect to varied products is done respect of Retail
industry. For attain this purpose, researcher will implement some research methodology
methods.
1.1 Background of research area in form of question, objective and hypothesis
Consumer behaviour refers to the situation where individual customers buying pattern is
analysed in detail and on that basis strategy is formulated for enhancing sales of product. There
are several factors through which consumer behaviours can influence such as marketing factor,
personal factor, psychological factor, situational factor, social factor etc (Miguéns, Joana, Baggio
and Costa, 2008). Factors that are named above have significance impact on buying behaviour of
individuals whatever product an individual intend to purchase from the market. In the present
time, online conversation applications are the tools which mostly used by organization for
influence its customer toward product and services. With help of this medium, corporation can
easily advertise and promote its product and services and announce information regarding the
same.
Research Aim
To understand the influence of online communication platform on the consumer purchase and
choice in the retail sector: A research work on Marks and Spencer
Research Objectives
To identify and analyse terminology of social media platforms and its several channels
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To understand the concept of consumer behaviour and choice
To find out significance of online communication platform for influence on selection made by
the people and purchasing decision
To find out impact that online mode of communication have on customer selection and
purchasing decision in the retail industry
Research Question
What is the terminology of social media and its several channels?
What is the concept of consumer behaviour and choice?
What is the impact that online mode of communication have on customer selection and
purchasing decision in the retail industry?
1.2 Statement of the rationale and reasons for choosing the research project
At the time of selection the research project topic, decision of researcher have affected by
several components. One of the major reason for selection of this research topic is scholar own
interest and curiosity. Researcher actually wants to acknowledge about the significance of social
media and its impact upon customer decision and purchasing toward product and services. In
addition to this, researcher actually implement his theoretical knowledge into practical work that
is why consumer behaviour topic has been chosen.
1.3 Literature review for the research specification
Terminology of consumer behaviours and its components
According to the view of Bruhn, Manfred, Schoenmueller and Schäfer, (2012) consumer
behaviour is a study of organisation, individual and group of people related to their purchasing
decision for product and services. Consumer behaviours is the action and decision procedure of
the individual while they purchase product and services for their personal consumption. In the
opinion of Chan, Ling and Guillet, (2011) personal factor is major component that affect
consumer behaviour and purchasing decision for product and services. It consists with age,
gender, education, occupations, income level etc. This factor is related to the customer
requirement and need regarding their personal life. In the contradicting view Fotis, John, Buhalis
and Rossides, (2012) stated that psychological factor also major factor that affect consumer
behaviour and nature. In this includes buying motives, perception, attitude, behaviours, thoughts,
feeling etc. As per this factor, consumer purchasing decision and choice may influence by their
perception and attitude toward that particular product and services. In the opinion of Dinan,
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(2000) price is another major factor that can affect the choice and behaviour of the customer
regarding product and services.
Understanding the meaning of online communication platform and associated channels
According to the view of Hays, Stephanie, Page and Buhalis, (2013) online mode of
communication to large extent are used by the business firms to do marketing of products and
services at workplace. By making use of online channel of communication marketing, firm may
share information about its products on the internet and its various channels like Facebook,
Twitter, Instagram etc. In the opinion of Hjalager and Anne-Mette, (2010) social media is the
collective of online communication channels that facilitate the sharing and creating of
information, idea, thoughts etc. Social media is a unique path of sharing and transmitting
information in various direction. There are various channels associated with like Facebook,
Twitter, You tube etc.
Assessment of impact that online mode of communication have on selection made by
customers and purchasing product and services in the retail industry
According to the view of Hudson, Simon, and Thal, (2013) social media marketing is
mostly used in the retail industry for promote and advertise product and services. By use of
social media channels, organization can have impact on the choice and behaviour of customers.
In this manner, retail organisation can post its information about product and services on the
several mediums such as Facebook, You Tube, Twitter etc. By reading the information about
commodity, customer may influence to purchase it. In the opinion of Leung, Daniel and et al.,
(2013) the major advantage of social media is that it is platform where anyone can easily connect
and access the information which post by company. Thus, it becomes easy to identify the
positive as well as negative comments of the customer who already used company's product and
services.
In the opinion of Hvass, Kristian and Munar, (2012) by use of social media platform
company can easily post the image, video, content information, link, picture of the product and
services on the internet for attract customers toward it. It is the best medium to promote and
advertise the product in the market because company can announce the information to many
users in the market.
In the opinion of Leung, Daniel and et al., (2013) while any customer purchase product
and services in the retail organisation then they search commodity on the social media. By this
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platform, customer can read other customer reviews and feedback about the same commodity.
Positive comments influence them for purchasing the product and services whereas negative
comments resist their purchasing decision. In addition to this, they can also identify the
customer's experience and feedback about the same product and services. Hence, it can be said
that in order to influence customer purchasing decision and choice in the retail industry, social
media have great role.
1.4 Research methodology
RM is assumed as one of the important section of the research study or considered as one
of the crucial part that helps to scholar in identifying research issue as well as its solution
(Garner and Scott, 2013). By implement these all techniques, researcher can find out the best
alternative solution of research problem. In the current study major focus is on finding out
impact that online channel of communication have on individuals buying decisions and decision
regarding purchasing product and services in the Retail industry. For attain this objective,
researcher will apply several techniques which are obstinate below- Research Philosophy- Research philosophy is crucial method of research methodology
through which investigator can easily identify the best alternative solution of research
issue. There are major two method of research philosophy that is interpretive and
positivism (Flick, 2011). For analyse the impact of social media on the customer choice
and decision researcher will apply positivism research philosophy. Research approach- Research approach is another significant technique for analysing
and understanding the actual objective of study. With help of this method, investigator
can assess and analyse the information for find out the best alternative solution. Inductive
and deductive are two major research approach. Deductive research approach can apply
for analyse the impact of social media on the customer choice and purchasing decision. Research technique- It is one of the important part of the research study because in this
data is collected, analysed and interpreted about the subject (Fiegen, 2010). There are
multiple methods of doing research like quantitative method and qualitative method.
There is difference between both approaches as by using quantitative method thematic
analysis is done where through charts respondents response are received. In quantitative
research tools like SPSS are used to analyse data.
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 Data collection- Data collection is the one of the important part of the research study
because reliability of results largely depend on the way in which and sort of quality of
data gathered. Major primary and secondary two method for data collection (Daniel and
Sam, 2011). While researcher collects information from survey, interview, observation,
questionnaire then it is known as primary data collection. Secondary data refers to the
facts and figures which are already published in any source of information. In the current
research study researcher will conduct survey from 30 customers of Marks and Spencer
for collect information about the research subject.
 Sampling- This is crucial method in the research methodology by which researcher can
select some specific group of people for collecting information about the subject
(Creswell, 2013). Sampling is a systematic procedure for selecting some people from the
entire population. In the current study, researcher will select 30 consumers of Marks and
Spencer who regular purchasing product and services from it.
1.5 Time-scale of research Activities
In order to overcome the impact of limited time period and accomplish all research activities
within specific time period, scholar will use Gantt chart method.
Tasks /WEEK 1 2 3 4 5 6 7 8 9 10 11
 Research project topic
selection
 Determine research topic
significance
 Identification of the aim ,
objective and hypothesis of
research subject
 Construct the literature
review along with several
themes of the subject
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 Research methodology
specification
 Selection of appropriate
methods of research
 Implementation of several
research methodologies
 Prepare a systematic
questionnaire
 Conduct primary data
collection from the
consumer of Marks and
Spencer
 Selection of research
evaluation technique and
its implementation within
study
 Collect relevant
information about the
subject
 Thematic technique is
applied to the present
outcomes.
 Detailed analysis of facts
 Preparing conclusion
section
 Final submission of
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research project
 Modification according to
the feedback
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Part – 2
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INTRODUCTION
Advance technology is very beneficial for each and every organization or business as
well as for public. Technological development enables great changes within the organizations, in
order to attract more customers every company is utilizing effective technology in their various
business functions such as production, marketing etc. Regarding this social media is one of the
most influencing tool to which has a great impact on the consumer choices and purchasing
decisions.
Choice and behaviour of consumer are very sensitive and can be affected by various
elements in the environment such as market demand, demographic factor, price factor etc. Social
media is the most influencing platform that is affecting the purchasing decisions and choices of
the customers related to a product or service. In this research project the investigator identified
impact of social media on the purchasing decisions of the customers with regards to retail
industry. The researcher has used various research approaches or methodologies in order to
obtain effective results.
TASK 1 : UNDERSTANDING FORMULATION OF RESEARCH
SPECIFICATION
1.1 Background of the research
Consumer behaviour can be referred as a situation in which the buying patterns and
decisions of the customers are analysed in order to developed effective strategy leading to the
increase in sales of the services and products. There are various elements affecting the consumer
behaviour such as personal choices, social factors, situational factors, psychological factor,
marketing factors etc. All the above mentioned elements have a huge impact on the consumer's
purchasing decisions with regards to a particular produce tor service in the marketplace. The
researcher has a great interest in consumer behaviour and their purchasing decisions which
influenced him to select this topic of research(Dörnyei and Ushioda,2013). In this research
project the researcher will apply various research methodologies in order to determine the
consumer perceptions with respect to the impact of online platform on the purchasing decisions
of the customers.
Research Aim – To understand the impact of online communication platform on the purchasing
decisions of the consumers in the retail sector. A study on Marks and Spencer
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