A Report on How Social Media Shapes Customer Buying Behavior

This report investigates the significant influence of social media on customer buying behavior in the contemporary market landscape. The introduction highlights the transformative impact of social media on purchasing patterns, emphasizing the increased use of platforms like smartphones and e-commerce sites. The literature review delves into the digital evolution of marketing, highlighting how social media tools and techniques have attracted customers and provided platforms for companies to promote products. The report explores customer decision-making processes, the importance of reviews, and the shift from traditional to digital marketing. The research methodology section outlines the exploratory research design, realism research philosophy, and inductive research approach used to understand the influence of social media. It details the random sampling method for data collection from a sample of 100 individuals and the use of quantitative techniques, including thematic analysis, to convert raw data into meaningful insights. The report aims to identify the factors influencing consumer buying behavior on social media and the changes social media has brought to consumers in different stages of their decision-making process.

How social media can
influence customer buying
behaviour

TABLE OF CONTENTS
INTRODUCTION: .........................................................................................................................1
LITERATURE REVIEW ...............................................................................................................2
RESEARCH METHODOLOGY.....................................................................................................4
TIMELINE OF RESEARCH ..........................................................................................................5
REFERENCES:...............................................................................................................................7

INTRODUCTION:
In the recent scenario, social media has highly influenced the buying behaviour of
customers. It has transformed the way of purchasing products. The use of social media is rapidly
increasing among people. Mostly, youngster’s interest has increased due to ease of technology.
However, there has been high demand of smartphones in the market. Social media has created a
great impact on the buying behaviour of customers (Flick, 2015). It is because of marketing of
products on networking site. Companies are now promoting their products on social media.
Besides this, platform has given opportunity to companies to attract a large number of customers.
This has developed various e-commerce sites for doing business. As more and more people
interact with each other on social media, they discuss about product’s features. After using that,
product’s reviews are given. Reviews given by people play a vital role in influencing the
behaviour of other people. Reviews and feedback helps in identifying how much a product
values. Also, what unique feature it has (Robson, 2014). Thus, by knowing reviews and ratings
of products, decisions are taken.
Customer behaviour is related to the decision and choice of people while purchasing a
product. It refers to the factors that influence people in their buying behaviour. These factors are
related to social, psychological behaviour, etc. of people. Along with this, change in tastes and
preferences of people also lead to change in their needs. A negative review about a product will
create a bad image of that. This will allow them to not to buy that. If a consumer becomes loyal
with a company then he or she will always say positive about it. It will help in creating a strong
brand image of company (Smith, 2015).
Importance of research
Social media is a platform where a person is connected with millions of other people. So,
if anything recommend by him will be observed by them. This is the main reason why
companies promote their products on social media. Also, a positive or negative comment given
by individual will let others in making decision. Moreover, generally people buy products only
after getting reviews from others. For example- a new product is launched in the market. So, if
positive reviews are given by people then it will help in easy promotion. Thus, by this, company
will be able to increase its sales and generate more profits (O’Leary, 2017).
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Rationale of research
This research is based on How social media can influence customer buying behaviour. It
will show why there has been change in consumer behaviour and what factors are involved in
this. People have been focused on social media to purchase any products. They search for
information and then compare it with other. This helps them to make correct decision. The
objective behind conducting this research is to find out the factors that influence consumer
buying behaviour while purchasing products on social media.
Research objectives:
 To identify impact of social media on consumer buying behaviour
 To identify impact of social media on business marketing strategies.
 To identify the changes social media has brought to consumers in different stages of their
decision making.
Research questions
 What is the role of consumer buying behaviour in purchasing goods and services?
 What is the role of social media in marketing of products?
 How social media influence customer buying behaviour?
LITERATURE REVIEW
The digital evolution has transformed entire way of doing business. It has provided many
techniques and tools through which products and services are advertised (Bell, 2014). The
methods and tools used in this have attracted a large number of customers in less time. Also, it
has provided a platform for companies to promote their products at same place. However, it has
effectively used technology for marketing products. For this, social media and internet have been
a great tool for companies. It is because; people are highly attracted towards various networking
sites. The increase in use of social media among youngsters have converted companies to use
them as a useful source. Moreover, the benefits of using this source are it is very cheap and large
number of people like to spend most of their time on networking sites. They interact with each
other and share their views and opinions (Dyas, and Leighton, 2014). It has provided a variety of
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choices to people to purchase products. For this, social media and email marketing are highly
being used. This has created a high impact on consumer behaviour to take decisions.
Customer buying behaviour is related to their attribute’s preferences and decisions while
purchasing a product. It has become easy for them to search information about goods. People can
easily get every detail of product on internet. Also, by this, they compare it with other
alternatives and do evaluation on the basis of features, price, etc. After this, they take decision to
purchase the same (Pant, 2017). If people are satisfied it with product they recommend it to
others. This is known as post purchase behaviour where consumers can either spoil or improve
the brand image of company
Customer decision while purchasing a product depends upon his needs and demands.
Also, it depends what they have heard about it from others. Connecting with different people
helps in sharing their ideas and thoughts. It also helps in knowing what they think about a
particular brand or company. Moreover, companies are now focused on digital marketing rather
than traditional marketing (Sudesh, Dognapped, and Nethra, 2016). It is due to change in
behaviour of people while buying goods. From previous research done, it has been found that
people are influenced by reviews that are shared on social media. They get emphasis more on
reviews to know the quality of product. Before purchasing it, they read its reviews so that
comparison can be made. It is the best way to compare two products of same category and price.
By this, they can buy the best one. Any negative comment about products will lead to decrease in
sales whereas, positive comment will result in high demand.
Social media is platform where if any new product can be launched to attract people. It
will help in identifying their behaviour by taking their feedback. Also, according to it changes
can be made in services so that customers can be retained (Ellis, 2018). It helps in measuring
performance of digital marketing. It is done by measuring website traffic, brand awareness, etc.
By using social media companies are able to maintain customer relationship management. It
helps in identifying what changes have occurred in taste and preference of customers. People
have been focused on social media to purchase any products. They search for information and
then compare it with other. This helps them to make correct decision.
Deloitte report shows that 47% of millennials are influenced by social media as compared
to 19% of all age groups (Wilson, 2015). Moreover, people are US are highly influenced by
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social media. This report also gave results on various categories. It showed that 56% of
consumer buy baby products are influenced by social media. While 40 % in home furnishing,
33% for health and 32% for automotive. Furthermore, the affect can be seen in figures as 29%
people are more likely to purchase product suing social media while going to store. The various
factors that considered while using social media by company are it helps in keeping brand
visible. It makes sales more convenient to consumers. It can reach to vast number of consumers
at same time. At last it increases engagement of likelihood for purchase (Wong, and Psych,
2016).
Due to vast amount of information available it is difficult for people to make decision but
social media provides opportunity to take appropriate decision. Moreover, people buying
behaviour changes when they get to know something unique about product (Smith, 2015). This
attracts them to purchase it. Social media allow people to interact with other people. This help in
giving choices and information for a product. By this people get influence very easily. It is
because of people perception that they share with others. Sharing features and benefits of goods
catch eye sight of people. They get excited to know more information about goods. Then
afterwards search for this is done on internet. By reading reviews and comments on quality,
price, features of product decision is made (O’Leary, 2017). This decision is based on other
person reviews. Post purchase decision means how they feel after using that product. How their
needs were satisfied or how much it created. This is the reason why people behaviour changes
after they use good. Then they turn to other company product for to satisfy their needs.
RESEARCH METHODOLOGY
Research design -Research design plays a crucial role in conducting the research. It can be
divided into two groups that are exploratory and conclusive. This research was based on
exploratory design (Dyas, and Leighton, 2014). It is because it just gives an insight about the
situation that is how social media has influenced customer buying behaviour. It will help in
providing different factors that affect people behaviour while purchasing a product. The aim is
using this design is only giving a brief overview of how social media is considered as important
source. Also, why people behaviour changes when they read reviews on social media and how
they react to it.
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Research philosophy - The philosophy used in conducting this research is realism research
philosophy. It is based on assumption of scientific approach to develop knowledge (Satheesh,
Dognapped, and Nethra, 2016). Here scientific approach taken is why there has been influence
on buying behaviour of consumers. So, the relation between them is identified to develop
knowledge about how social media is influencing customer behaviour. Realism is divided into
two groups that is direct and indirect. Direct means what we see is what we get. In this research
it is seen change in behaviour of consumer due to social media. Critical realism means humans
do experience real image of the world. So, there has been change in consumer behaviour as
products are promoted on social platforms. Decisions taken by them depends upon what other
have said about particular product (Wong, and Psych, 2016).
Research approach – For this research inductive research approach can be used. It shows that
how by using social media people takes decision. It will give results on factors that has
influenced their behaviour. It focuses on general aspect of research. In this data used will be
provide a framework about what specific factors have influenced behaviour. Also, how there has
been change in pattern of behaviour of people (Bell, 2014). Moreover, this research aims at
generating theory.
Data sampling- Data collected is done by using selecting random sampling method. This
method is taken because it is very easy to sample and less time and cost is required in this. There
is no choice taken while selecting population. This will be useful in finding out people of
different demographics on how they use social media in purchasing products. It is because it will
be easy to know the overall influence of social media on people (Wilson, 2015). There will be no
bias in this. Also, they represent the entire population. In this random sampling is done rather
than lottery method. The data sample will be of 100 people. It will consist population from all
segments and thus from this it will be easy to identify influence on buying behaviour due to
social media.
Data analysis: The data analysis is done by using quantitative technique. It will help in
converting raw materials into meaningful data. In this thematic analysis is used. It is used
because it will help in analysing data in effective way and giving specific results. It is because
this research is based on rational approach. Also, it will help in finding out differences between
variable. It will show at what level people have been influenced by social media (Flick, 2015).
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TIMELINE OF RESEARCH
Timeline of research shows that how the entire research has been conducted. It divides
activities into various tasks so that it can be identified which activity has to be performed and
when. By creating timeline proper research is conducted. Also, it helps in reviewing entire
research process. It is 20 weeks research timeline that starts from February to August.
Activity 1the
to 2nd
Week
3rd.
to
4th
Week
5
the
to
6th
Week
7the
to
8
the
Week
9the
to
10
the
Week
11
the
to
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the
Week
13the
to
14
the
Week
15
the
to
16ht
Week
17th to
18
the
Week
19th to
20th
Week
Identify
research topic
Review of
Literature
Drafting
Methodologies
Complete
Proposal
Design question
and pilot
research
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Documentation
of records
Analysing data
and
interpretation
Discussion and
Conclusion
Final Report
Editing &
Completion
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REFERENCES:
Books and journals:
Bell, J., 2014. Doing Your Research Project: A guide for first-time researchers. McGraw-Hill
Education (UK).
Dyas, J. and Leighton, P., 2014. EFFECTIVE RESEARCH PROPOSAL. An Introduction to
Health Services Research: A Practical Guide. p.51.
Ellis, C., 2018. A Research Proposal: The Effect of Visual Merchandising on Female Consumer
Shopping Behaviour.
Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research
project. Sage.
O'Leary, Z., 2017. The essential guide to doing your research project. Sage.
Pant, P., 2017. Corporate Social Responsibility and Consumer Buying Behaviour: A Research
Proposal.
Robson, C., 2014. How to do a research project: a guide for undergraduate students. Wiley
Global Education.
Smith, J.A. ed., 2015. Qualitative psychology: A practical guide to research methods. Sage.
Sudesh, K., Dognapped, D.R. and Nethra, S.S., 2016. How to write a research proposal? Indian
journal of anaesthesia. 60(9). p.631.
Wilson, S., 2015. Implementing the Indigenous paradigm in the research proposal.
Wong, P.T. and Psych, C., 2016. How to write a research proposal. Langley: Trinity Western
University Langley. Retrieved.26.
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