Analyzing Social Media's Impact on Customer Choice in Retail (M&S)

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Added on  2020/01/23

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This research project investigates the impact of social media on customer choice within the retail industry, using Marks & Spencer as a case study. The project begins with an introduction highlighting the crucial role of social media in modern marketing, focusing on how companies can connect with customers, provide information, and influence purchasing decisions. The project aims to analyze the effects of social media on customer attraction and perception, identifying various techniques employed by retailers like Marks & Spencer to engage customers. The project includes a literature review defining key concepts such as customer behavior, social media, and relevant social media techniques like Facebook, Twitter, and YouTube. The research methodology section outlines the research philosophy (positivism), research approach (deductive), and data collection methods to be used. The project is designed to explore how social media influences consumer decisions, particularly in the context of online purchasing and the impact of both positive and negative information on customer choices. The research also considers resource implications, including time and funding constraints, and the use of tools like Gantt charts to manage the project effectively. The project concludes with an overview of the research specifications and the component that lead to the process of research project.
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Research Project
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Table of Contents
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Research Title
To Analyse the impact of social media on the customer choice in retail industry: A
study of Marks &Spencer
INTRODUCTION
In the present era, social media plays a very crucial role in the marketing sector
because most of the people are connected to this platform. Social media is a platform at
which company can easily get touch with the customer and provide the information
about product and services. It is the best medium for the corporation to attract the
customer and provide information about product price, feature, discount etc (Creswell,
2013). The following research project provides the depth knowledge and understanding
about the social media impact on the customer choice and perception. Social media
assist to customer attraction and getting their feedback and review about the product
and services. The present research is based on the study of social media on the
customer choice and perception in the Mark &Spencer. It is one of the famous retail
outlets which deal with clothing, home products and luxury food product. The major
objective of this research is to analyse the impact of social media and identify that how it
helps on the customer attraction toward the organisation. Various techniques of social
media will identify in this respect to encourage and attract the customer toward the
product sand services of Marks and Spencer. In addition to this, ways will also suggest
by the researcher which can assist in encouraging customer by social media.
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1.1 Preparation and recording possible research project outline specifications
Aims: To Analyse the impact of social media on the customer choice in retail industry: A
study of Marks &Spencer
Objective
To understand the meaning of customer behaviour
To understand the meaning and concept of social media
To determine the techniques used by retail industry for attracting customers
To assess the impact of social media on marketing and sales To recommend several ways through which social media can help to attract the
large number of customer
Resource implication
For the current study, the investigator will use some resource to accomplish the entire
research. In the entire research, an investigator will limit time period and fund thus it
becomes hard for the investigator to carry out the study. In order to overcome the
impact of time and fund resource, the investigator will adopt the activity based costing
method under which activities will plan according to limited time and fund. While the
whole research will finish within the small period and this implication will influence the
result of the entire work. In order to decrease the impact of resource, an investigator will
use Gantt chart technique. Each activity and event will allocate within a specific time
duration so as the desired work can accomplish within a time period. Furthermore,
some secondary resource will also use by the investigator to collect the data.
1.2 Component that leads to the process of research project
At the time of selecting the topic of research, an investigator will face several factors
which affect the perception. The major factor is the personal interest which influence
scholar at large manner because researcher desires to identify the impact of social
media on the customer perception and choice in the Marks &Spencer. The another
reason for selecting this topic is to assess that how many social media techniques can
be used in the retail industry. Furthermore, there is sufficient data are available on this
topic thus the scholar influence to choose this particular topic of customer behaviour.
There will various studies conduct by the scholar so their finding and argument can
assist scholar in getting the appropriate result about the topic.
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1.3 Critical review of key references
Meaning of customer behaviour and perception
As per the view of (Smith, 2015) customer behaviour is the study of individuals, group or
organisation and the processes they used to select, secure, use and dispose of product
and service to satisfy their desires. As per the view of (Fiegen, 2010), a customer is that
individual who purchases product and services from the market for their end use.
Silverman, 2016 Customer behaviour is an attribute which affects various kind of
components like demographic, geographic, social, psychological etc. Customer
behaviour is very sensitive and mostly influenced by their needs, wants and desire
about something. As per the view of customer behaviour refers to the actions of
customers in the marketplace and the underlying motives for those actions. Customer
behaviour is the decision and action of the individuals who purchase goods and
services from the market for their personal consumption. Personal factor is the major
component of age, gender, education and income level which affect the customer
behaviour at the time of purchasing.
Meaning and concept of social media
According to the (Fiegen, 2010), social media is one of the online communication
channels which assist in sharing the information and message between the individuals.
It is a kind of application and website that enables users to share and create their won
page and content in social networking. As per the view of social media is a medium
through which any individual can create their won page and share their information to
other or public. It is an electronic communication platform through which people create
online communities to exchange information, idea, thoughts, mood, personal message
and other content like audio, video, images, links, files etc. As per the view of (Garner
and Scott, 2011), social media assist in identifying customer feedback and review about
the product and services. The company can easily get touch with the customer and ask
the feedback and their comment about the product and services. By identifying the
comment and review of a customer, a firm can make necessary changes in the existing
commodities and services.
Analyse the techniques of social media
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As per the view of (Kumar, 2014.) With the assistance of social media
techniques, a company can attract a large number of a customer at a single time and
also provide the information about a product to a large number of public. As per the
view of (Panneerselvam, 2014. ) customer can more attract toward purchasing because
social media platform attracts them by disclosing images, video, audio, and other
content of product and services. Following are various tools and technique related to
social media which can use by organisation to influence customer choice-
Facebook: As per the view of (Silverman, 2016) Facebook is a social networking site for
the user so as they can communicate and transfer their information and message with
other and get keep in touch with friends and other individuals. In the context of the
corporation, Facebook is a page where a company can generate its own content able
business as well as product and services. The company can generate Facebook pages
about its own business and get comment and review of a customer about product and
services. On the Facebook, there is a like and share button through which anyone can
easily like by click and share that particular page to other.
Twitter: As per the view of (Silverman, 2016) twitter is defined as a microblogging. In
this social media marketing site, a user of Twitter send some Tweets which is just like a
text messaging in 140 characters. This media can use by the retail sector to promoting
their product and services. A retail outlet can use this platform like Facebook.
YouTube- As per the view of (Safko and Lon, 2010) you, a tube is one another
important platform of social media through which anyone can share their own video to
the public. By making a small video about product and services, a company can make
its one image in the front of a customer and attract them for purchase. Thus, it is the
best platform to attract the people toward the product and services.
Assessment of the impact of social media on the customer choice in retail
organisation
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As per the view of (Stelzner and Michael, 2011), social media is the very helpful
platform for the retail industry because it is as the medium through which corporation
can create and generate the own page on the internet website and share the content
send information about product and services. The customer is those individuals who
purchase the product and services for their end use from the market. In the retail sector,
there is a large demand for customer goods and services so if company promote its
product by social media then it will great impact of the perception and choose of a
customer. As per the view of (Safko and Lon, 2010) in the today's era, customer are
more prefer to use the internet and online purchasing because in today's time internet
use is continuously increased. Every customer wants to purchase the product by online
because it is the time-saving method. The customer is influenced by the information
available on these platforms. As per the view of (Smith, 2015) customer is more
influenced by negative information than the positive information in making a product
choice with social media. While any customer wants to purchase the product then social
media is the very helpful platform which assists in proving the review of the particular
product and services. By reading comment and review, a customer can influence to
purchase that particular product. The content and information about product and
services are easy to spread by use of social media which help a customer to
understand the usefulness and feature of a product. By attractive design, audio, video,
content and full information about the company as well as product, a customer can
more attract toward the commodities to purchase.
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1.4 Research project specification
The following research is based on the study the impact of social media on the
customer choice in the Retail industry. In order to carry out the study, the researcher will
be selected Marks &Spencer UK. In order to attain the research objective, scholar will
take the consideration of following research specification-
A methodology is an approach which is used by the scholar in order to conduct the
research and get the appropriate conclusion. Research methodology is based on the
various factor that is divided into their sub-parts (Daniel and Sam, 2011). It is a studied
which is the important part of the entire research and which gives the idea for gathering
the data and information. Research methodology assists in designing such element
through which research study can easily conduct. Data collection and data analysis is
very important part of the research methodology which helps in attaining the aim and
objective of research by collecting the information and their analysis.
Research philosophy-
The research philosophy depends on the explanation of the process of collection of
data and analysis. It is an idea which assists investigator in defining the entire
procedure of data collection and analysis. There are major two kinds of philosophy that
are positivism and interpretivism. In the context of positivism, the scholar will use the
various theories and find to test the subjective concept. In this manner, scholar used to
different concept and result to test the research (Garner and Scott, 2013). On the other
hand in the context of positivism research philosophy, the scholar will consider the
major objective of the research. In the present research, a scholar will use positivism
research philosophy because project address some objective and aims. With the
assistance of positivism philosophy, a scholar can analyse the impact of social media
on the customer choice in the retail industry.
Research approach- Research approach assists to scholar to analyse and determine
the appropriate conclusion and result of the research by either hypothesis or theory.
There is major two type of research approach that is inductive and deductive which
assist to scholar to perform the research outcomes (Panneerselvam, 2014). In the
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context of the inductive approach, in the starting of the study general view will explain
so as the study can develop as a different theory which assists in the development of
the conceptual framework for the analysis of data. If the research question is already
valuable in the research then investigator will sue the inductive research approach. On
the other hand, if research will base on the hypothesis frames to address the research
issue then it is known as a deductive approach of research. In the following research,
the scholar will use the inductive framework because entire research will base on the
research question which will frame to identify the impact of social media on the
customer choice in the retail company.
Research technique- In the research, analysis of the collected data is very important
which aids in obtaining the appropriate result of the study. There are major two kinds of
research technique through which collect the data and analyse them to get the effective
finding that is qualitative and quantitative. In the context of qualitative technique, the
information and data can collect from the relevant theories, models and concepts. In this
technique, there is not any kind of calculation based on the maths (Silverman, 2016).
On the other hand in the quantitative research, the research study based ion the fact's
and finding which can obtain from the data collection and figure. In the present
research, both methods will use because investigator will know about the concept of
social media, its techniques and consumer behaviour by various theories and literature.
On the other hand, a scholar will take the response from the customer of Marks and
Spencer who is influenced by the social media and purchase the product by online.
Research design- In the entire research project, research design plays a very crucial
role because research design can be done in so many ways that are descriptive,
experimental and other casual research. In the following research, a descriptive design
will use by investigator so the components which are already in practices their
explanation can be done.
Data collection-
In the research data collection is one of the mots important parts through which
investigator can able to collect the data about the research topic. There are two kinds of
data that is primary and secondary. In the primary data, an investigator will prepare a
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structured questionnaire to contain with open and close-ended questions (Smith, 2015).
The main aim of these question is to identify the impact of social media on the customer
perception of retail organisation and how they influence to purchasing by this medium.
On the other hand, secondary data will collect from books, blogs, journals, Marks
&Spencer websites etc.
Sampling: In order to address the research objective, the investigator will use random
number sampling which provides appropriate criteria of investigation (Silverman, 2016).
The total number of a sample will 20 respondent or customer of the Marks and Spencer
who use the social media for purchasing the product.
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1.5 Appropriate plan and procedure for the agree research specification
Activity/Week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Formulation of research proposal
Preparing aim and objectives
Writing background research
study
Assortment of suitable research
methodologies
Data collection by using primary
and secondary sources
Examination of the collected data
Interpretation of collected
information to generate expected
results
Conclusion and recommendations
Submission of draft report
Modifications as per the feedback
comments
Final Submission
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TASK 2
2.1 Contest resources expeditiously to the research question
In order to carry out the research, the scholar has been focused on the major three
resources that are employees, finance and time. While scholar conducted the research
then he/she requisite for some fund in order to printing questionnaire, travelling cost,
internet cost, take membership of various research websites etc. The entire research
has been accomplished within 16 weeks so as the study can finish within appropriate
time.
Demographic information
1. Name: ___________________
2. Age
15 to 20 years
20-30 years
30-40 years
40 and above years
3. Gender
Male
Female
4 From how many times you purchase the product of Marks and Spencer?
Less than one year
From one year
Last Tow year
Five and more than five year
5 Which factor affect you most while purchasing the product and services?
Personal factor
Geographic factor
Demographical factor
Other
6 Are you influence with social media tools in regard with Mark and Spencer?
Yes
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No
7 What is your intention of using social media tools in regard to purchasing the product?
Gaining information about products and service
Find the best product by post and pages
Providing feedbacks for accessed services
To Get Exclusive Offers
8 Which type of social networking website did you use mostly?
Facebook
Twitter
Hi 5
YouTube
9. Are you satisfied with social media initiatives of Marks and Spencer?
Highly satisfied
Satisfied
Neutral
Dissatisfied
10 Kindly recommend the way through which Marks and Spencer can improve social
media service for its customer?
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2.2 Undertake the projected research enquiry in accordance with the agreed
specification and process
In the above research, the scholar has taken the personal email id of 20 customers of
Marks and Spencer who is the member of the social media page of cited venture.
Further, investigator prepared a structured questionnaire which is based on the
customer perception and social media impact. In order to collect the information of from
respondent, an investigator has been sent the questionnaire on customer personal
email id so as they can freely feel their answers of questions.
2.3 Recording and collecting data from participants from the questionnaire
Theme: Mostly 20 to 30-year customers used social media website of Mark and spencer
Age Frequency
15 to 20 years 6
20-30 years 10
30-40 years 4
Theme 1: Many of the customer purchase the product of the Marks and Spencer from
Two year
From how many times you purchase the product of Marks and
Spencer? Frequency
Less than one year 3
From one year 5
Last Tow year 7
Five and more than five year 5
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Theme 2: Personal factor affect customer most while they purchase the product and
services
Which factor affect you most while purchasing the product and
services? Frequency
Personal factor 10
Geographic factor 4
Demographical factor 4
Other 2
Theme 3: Most of the customer influences from social media tools in regard to Marks
and Spencer.
Are you influence with social media tools in regard with Mark
and Spencer? Frequency
Yes 16
No 4
Theme 4: Most of the customer have the intension to collect the information about
product and services on social media.
What is your intention of using social media tools in regard to
purchasing the product? Frequency
Gaining information about products and service 8
Find the best product by post and pages 5
Providing feedbacks for accessed services 3
To Get Exclusive Offers 4
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Theme 5: Most of the customer use Facebook website in order to collect the information
Which type of social networking website did you use mostly? Frequency
Facebook 8
Twitter 6
Hi5 2
YouTube 4
Theme 6: Most of the customer are satisfied with social media initiative of Marks and
Spencer
Are you satisfied with social media initiatives of Marks and
Spencer? Frequency
Highly satisfied 8
Satisfied 8
Neutral 1
Dissatisfied 3
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TASK 3
3.1 Using proper research assessment method with justification
In order to evaluate and assess the gathered data, researcher has two kinds of
techniques that are formative and summative research techniques. In the formative
evaluation, programs or project are typically evaluated during their development to
render the information about how the appropriate action can be taken to improvement
(Daniel and Sam, 2011). In a simple word, it can be said that formative evaluation
research is exploratory and is done at the beginning project. On the other hand in the
context of summative research, it is done at the end of a project and used to determine
its success. In the following research, a scholar has used formative research evaluation
so as he/she can analyse the reliable and valid outcomes.
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3.2 Interpretation and analysis the result of original research specifications
Theme: Mostly 20 to 30-year customers used social media website of Mark and
Spencer
Age Frequency
15 to 20 years 6
20-30 years 10
30-40 years 4
Interpretation and analysis: This section stated that most of the customer who is 20 to
30 year old has sued the social media channel or website of Mark and Spencer. Further
very few customers of age 30 to 40 used this channels. Thus, it has been analysed that
old age people do not use this social media channel for purchasing the product and
services.
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15 to 20 years 20-30 years 30-40 years
0
2
4
6
8
10
12
Frequency
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Theme 1: Many of the customer purchase the product of the Marks and Spencer from
Two year
From how many times you purchase the product of Marks and
Spencer? Frequency
Less than one year 3
From one year 5
Last Tow year 7
Five and more than five year 5
Less than one year
From one year
Last Tow year
Five and more than five year
0 1 2 3 4 5 6 7 8
Frequency
Interpretation and analysis: This section stated that in the Marks and Spencer
organisation, from the 20 customers, 7 customers are using the product and services
from last two years. Further, 5 customers are using the product from 1 year and five
customers are using the product from more than five years. On the basis of these data,
it has been analysed that many customers are using a product of Marks and Spencer.
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Theme 2: Personal factor affect customer most while they purchase the product and
services
Which factor affect you most while purchasing the product and
services? Frequency
Personal factor 10
Geographic factor 4
Demographical factor 4
Other 2
Personal factor
Geographic factor
Demographical factor
Other
Interpretation and analysis: This sector stated that from the 20 customers of cited
venture, 10 customer purchasing decision affected by their personal factor which
includes income, lifestyle, occupation, education, perception, beliefs, attitude etc. From
the 20 customers only 4 customer decision affected by their geographical and
demographical factor. From this collected data it has been analysed that customers are
more influenced by their personal beliefs, attitude.
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Theme 3: Most of the customer influences from social media tools in regard to Marks
and Spencer.
Are you influence with social media tools in regard with Mark
and Spencer? Frequency
Yes 16
No 4
Yes No
0
2
4
6
8
10
12
14
16
18
Frequency
Interpretation and analysis: This section states that most of the in the Marks and
Spencer company, from the 20 customers, 16 customers are influenced by the social
media channels like Facebook, twitter, youtube etc. From this data, it has been
analysed that social media is very effective and crucial channel in the retail industry
through which customer can influence to purchase and they can also collect the data
about the product.
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Theme 4: Most of the customer have the intension to collect the information about
product and services on social media.
What is your intention of using social media tools in regard to
purchasing the product? Frequency
Gaining information about products and service 8
Find the best product by post and pages 5
Providing feedbacks for accessed services 3
To Get Exclusive Offers 4
Gaining information about products and serviceFind best product by post and pagesProviding feedbacks for accessed servicesTo Get Exclusive Offers
0
1
2
3
4
5
6
7
8
9
Frequency
Interpretation and analysis: This section stated that in the cited venture from the 20
customers, 8 customers are using the social media channel with an intension to collect
the data and information about the product and services. Further, 5 customers used
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social media for find the best post and pages about the product and remaining customer
used this channel by providing feedback and get attractive offers. Thus, from this data it
has been analysed that customer is mostly sued social media by several reasons and
its is the very helpful platform which provides information about a product to them. Most
of the customer used a channel to collect the information about product and service.
Theme 5: Most of the customer use Facebook website in order to collect the information
Which type of social networking website do you use mostly? Frequency
Facebook 8
Twitter 6
Hi5 2
YouTube 4
Facebook
Twitter
Hi5
YouTube
Interpretation and analysis: This section stated that in the Marks and Spencer
company, from the 20 customers, 8 customers used the Facebook channel for collect
the data about the product. Remaining 6 customers used twitter and 4 used youtube.
From this information, it has been analysed that customer is mostly used Facebook and
twitter in order to gather information, provide feedback and identify the product and
service of Marks and Spencer.
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Theme 6: Most of the customer are satisfied with social media initiative of Marks and
Spencer
Are you satisfied with social media initiatives of Marks and
Spencer? Frequency
Highly satisfied 8
Satisfied 8
Neutral 1
Dissatisfied 3
Interpretation and analysis: This section stated that in the Mark and Spencer, from 20
customers 8 customers are highly satisfied from the social media marketing of cited
venture. Remaining 8 are satisfied from the company's social media strategy and
channels. From this data, it has been analysed that company is effectively influenced
the customer for purchasing the social media. However, 3 customer are dissatisfied due
to the negative comment about a product in the social media. Thus, it can be said that
social media is very helpful to influence the customer for purchasing the product.
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Highly satisfied Satisfied Neutral Dissatisfied
0
1
2
3
4
5
6
7
8
9
Frequency
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3.3 Advice and justification area for further consideration
Marks and Spencer should improve its performance on social media channels so as
the customer who is against the social media can positively influence to use the same.
As per the entire research, it has been found that many customers is positively
influenced by the social media channel and websites of Marks and Spencer. However,
there is most negative thing is that only 20 to 30-year customers mostly used this
channels and 30 to 40-year-old people do not use this social media channels. So in
order to reduce this negative thing, Marks and Spencer should take the right step.
Following are some recommendation-
The company should start its own online daily on the social media so as the
customer can easily change their perception about social media.
The company should make the regular update on the social media about product
and services so as the customer can easily get the information and touch with
the company. This thing will change the customer perception about social media.
The corporation should share an attractive post, picture, video, audio and images
about the product and services so as the customer can more attract toward a
company.
Further area
The following research will use in the travel and tourism sector through which company
can assess the impact of social media on customer perception. On the other hand , this
research can conduct within the context of any other retail business organisation like
Tesco, Asda etc so as it can overcome the negative thing of social media in customer
purchasing process.
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REFERENCES
Books and Journals
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