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CHAPTER 5

FINDINGS AND CONCLUSION

This chapter describes the salient findings, the implications of the

study to stakeholders and future research directions.

5.1 SALIENT FINDINGS

The following are the salient findings of the study

5.1.1 Reliability, Validity and Factor Structure

 The reliability of Consumer Socialization Antecedents,

Outcomes and the complete questionnaire are found to be 0.88,
0.85 and 0.94 respectively.

 Validity of the questionnaire is established through content,

face, construct and convergent validities.

 Consumer socialization antecedent is composed of two factors.

The two factors identified through CFA are tie strength and
identification with peer group.

 The nine factors of consumer socialization and outcomes

confirmed using CFA, are peer communication, product
involvement, product attitude, EWOM, disposition to trust, IBT,
trusting belief and VCC and purchase intention.
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5.1.2 Consumer Socialization Antecedents (CSA)

 The consumer socialization antecedent, tie strength, predicts the

IPG significantly and has positive relationship with it.

 Tie strength predicts peer communication of a consumer in

social media. It has a positive association with peer
communication.

 Identification with peer group predicts peer communication

positively.

5.1.3 Consumer Socialization Antecedents (CSA) and Consumer

Socialization Process (CSP)

 The two factors of CSA namely tie strength and identification

with peer group predict peer communication engaged by a
consumer in social media. Both factors of CSA have positive
associations with peer communication.

5.1.3.1 Consumer Socialization Process (CSP) through Social Media

Peer Communication (SMPC)

 Peer communication in social media predicts the product

involvement of consumer significantly and has a positive
association with it.

 Peer communication also predicts the product attitude of

consumer and has positive association.

 The two factors of SMPC, viz. peer communication and product

involvement, predict the product attitude of a consumer. Both
have positive associations with product attitude.
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 Product involvement mediates the relationship between peer

communication and product attitude.

5.1.3.2 Consumer Socialization Process (CSP) through Social

Networking word of Mouth Communication (SNWMC)

 EWOM communication predicts the trusting beliefs of a

consumer and has a positive association with it.

 EWOM communication predicts IBT and has a positive

association with it.

 The two factors EWOM and IBT, predict trusting beliefs

significantly and have positive associations with it.

 IBT mediates the relationship between the EWOM

communication and trusting beliefs.

 DTT predicts trusting beliefs of a consumer significantly and

has a positive association with it.

 DTT predicts the IBT and has a positive association with it.

 EWOM communication predicts VCC and has a positive

association with it.

 Trusting beliefs mediates the relationship between the EWOM

and VCC process and is positively associated with it.

5.1.4 Consumer Socialization Process (CSP) and purchase decision

 All eight factors of consumer socialization process significantly

predict the purchase decision of the consumer. Of the eight
factors, VCC plays a major role in purchase decision of a
consumer in social networking.
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 Product attitude of a consumer positively predicts the purchase

decision.

 EWOM significantly predicts the purchase decision of a

consumer.

 Trusting beliefs of a consumer positively predicts the purchase

decision.

 VCC predicts the purchase decision of a consumer.

 VCC mediates the relationship between trusting beliefs and

purchase decision.

 The factors EWOM, trusting beliefs and VCC positively predict

the purchase decision of a consumer.

 IBT mediates the relationship between EWOM and trusting

beliefs.

 Trusting beliefs mediates the relationship between EWOM and

purchase decision.

 VCC significantly mediates the relationship between EWOM

and purchase decision.

 Trusting beliefs predicts the VCC significantly.

 Peer communication and EWOM plays a significant role in

purchase decision.

5.2 IMPLICATIONS OF THE STUDY

The research findings provide implication for interactive marketing

practitioners, online advertisers, social media website operators etc.
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5.2.1 Managerial Implications

The findings of the study can help scholars and interactive

marketing practitioners understand the role of social media for consumer
behavior and marketing. Consumer socialization is an influential aspect of
consumer behavior. It is used to understand how consumers are influenced to
purchase a product based on product reviews available through social
networking websites. The socialization antecedents, tie strength and
identification with peer group, influence the socialization agents of social
media. When managers listen to customers’ voices, and innovate, they can
create better products in the long run. Increased awareness of brand helps to
establish such progress.

One can easily communicate to the peers using social media about
the product or service of an organization. Business to consumer (B2C) e-
commerce practitioners can gain insight on how to better utilize resources in
social media to build their product images. Better strategy can be framed
using social network platform to improve VCC process with customers. Such
processes would encourage the consumer to repeatedly purchase the product
or avail of services, thereby increasing the sales volume.

Product involvement has an impact on consumer purchase

intentions and this differs for high and low involved consumers. High
involved consumers prefer to take the central route and take more time for
their purchase decisions. Marketing managers should be aware of the fact that
high involved consumers behave differently from low involved consumers.

Consumers trust EWOM communication more than company

information. Marketing managers must have specified social media marketing
strategies to have credible EWOM communication and thereby manage
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EWOM communication. An awareness of EWOM would enable marketing

managers to choose the right communication channel.

In case of peer communication, online experts are perceived as

credible sources, where cognitive information prevails. Managerially,
understanding social relationship variables that affect consumers’ EWOM
behaviour in SNS could help marketers identify influencing individuals in
social networks and effectively incorporate social media as an integral part of
IMC.

5.2.2 Implications for Marketers

Social media provides opportunities for businesses to engage with

potential customers. A social networking website must allow consumers not
only to exchange product information but also provide socializing experience
with current and potential customers. Social media websites can stimulate
their visitors to learn more about product categories by highlighting the values
of offerings. Marketers take effort to increase the trust worthiness of active
reviewers to enhance the persuasive effect of peer communication.

Marketers who hope to gain revenue through EWOM on social

networking websites may increase positive attitude by giving possible
incentives like percent discounts, loyalty inducement, free shipping and gift
offers. This study corroborates with previous research that have shown that
peer communication and EWOM communication about products have effects
on purchase intention (Gregorio et al. 2010; Mangleberg et al. 1998; Nelson et
al. 2005). In order to improve product attitude, marketers must monitor
product reviews available in social media and address any complaints posted
online.
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Social media strategy is imperative for businesses that aim for

success and growth. It is well-known that a successful business is one that has
struck a chord with its customers – in terms of making interactions, contacts
and connections easier. EWOM in social media can help marketers in
identifying opinion leaders. Before commencing marketing activities,
marketers should understand the usage pattern of SNS and factors that
motivate users to use SNS.

Social media addresses this need by providing ample opportunities

for creating these connections, and hence it is important for marketers to tap
into this area. When managed successfully, it can create goodwill and
business for the company. This is an important reason for companies today, to
actively pursue web and craft a social media strategies. Such strategies would
enable marketers to capitalize on connections because people use social media
for three main purposes: to learn about something new, to evaluate a decision
and to connect and interact with others.

5.2.3 Implications for Online Advertisers

The results of this study will help businesses understand the

potential customer available on social networking web sites. Businesses
should include referral to friends to increase purchase intention or enter the
arena themselves through social networking websites to influence usage and
gain increased interaction between users. Positive attitude towards forums
increase purchase intention. Creating a positive attitude between peers will
increase the likelihood of purchasing the product. The “Like” function
available in Facebook can enhance publicity for products. Furthermore,
product information can be made easily accessible through social networking
websites.
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Business owners must use online social networking sites to gain

access to international exposure of brands and create a strong network of
customers. Social advertisement is an avenue for targeted marketing by
customizing the placement of ads based on the customer base. It is common to
find a Like, Tweet or Share button along with the product details on social
network applications. Provide the linking functionality to share information
about brand makes the website interactive and helps in improving the
relationship of the consumer with the company.

5.2.4 Implications for Social Media Website Operators

Organizations have traditionally used paid media to push message.

Social media has empowered consumers with a wealth of information at
finger tips, leveraging social media to make buying decisions. This decision
and experience, good or bad, influence many others also in the process. From
the organizational perspective, this highly interactive nature of social media
provides valuable data regarding customer preferences and behavior from
direct and immediate feedback. This direct engagement increases brand
loyalty and credibility. Social media websites provide an opportunity for
businesses to engage and interact with potential consumers and build
relationships with them.

Companies can award points, badges and special offers for

performing specific actions such as sharing with their friends on social
networks. Sharing these points and badges with friends results in a sense of
competition among the customer. Gamification is another avenue that
increases user engagement as well as user retention. Website operators must
ensure that social media forums offer credibility, relevance. Advance safety
mechanisms should also be in place to ensure high quality peer
communication and trust based interactions. By setting up tell-a-friend
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function on websites, online peer communication can be encouraged and thus

influence others to shop online.

5.3 FUTURE RESEARCH DIRECTIONS

The following directions for future research are foreseen:

Different socialization agents can be used on new technological

innovation including mobile commerce. Hybrid theoretical models can be
used to focus on peer and technological socialization agents. This will focus
on the relationship between an individual and technology.

Social learning processes in virtual communities remains a complex

process and future studies can focus research plans accordingly. Research
should find ways to reduce undesired negative effects of postings.

Researchers should explore the roles of other influential variables

for comprehensive results. Further investigations can be carried out with other
mediators and moderators.