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INFLUENCE OF SOCIAL MEDIA MARKETING ON CONSUMER BUYING DECISION

MAKING PROCESS

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 INFLUENCE OF SOCIAL MEDIA MARKETING ON CONSUMER
BUYING DECISION MAKING PROCESS

Perumal Prasath 1 and Archchana Yoganathen2

1
Department of Management, Eastern University, Sri Lanka
2
Department of Management, Eastern University, Sri Lanka

p.prasathlife@gmail.com, ammui2007@gmail.com

ABSTRACT

Social media marketing puts consumers back to the center of the business world and provides
marketers a new set of tools to interact with consumers and to integrate them into the brands
through innovative ways. In essence, marketers have to understand how the social media has
influenced consumer buying behavior. Social media marketing is the contemporary style of
marketing as it concentrates on opening new horizons for marketers in order to promote a
product or service as compared to conventional media. In recent times, consumer behavior and
satisfaction has become an important asset for any organization to attain its position in the
market and to increase its profitability. For this purpose, organizations are employing social
media technique. From research, it is evident that companies are employing social media
marketing in order to interact with the consumers. Social media marketing has given
organizations a new way of dealing and changing the buying behavior of the consumers.
People use social media to share their experiences, reviews, information, advice, warnings,
tips and any kind of issues that are interesting to their “connection” or friends. Social media is
used as advertising for the marketer. Marketers take this advantage and create marketing
strategy, which in turn could help them gain more customers. The social media environment is
very easy to apply and to reach the customer. These benefits give persons convenience to
achieve what they are looking for. The sample counted 220 respondents and from the
statistical perspective, the conclusions were established in terms of the univariate and bivariate
analysis. Likewise, after doing the complex statistical analysis using SPSS and the analysis
offered by the online platform the host of questionnaire, it can be seen how much it is
influenced and the real impact of Social Media Marketing reflected in the Consumer Buying
Decision Making process. In this research the Pearson’s Correlation analysis explores a positive
significant linear relationship between Social Media Marketing and Consumer Buying Decision
Making. The correlation coefficient (r2) was 30.9% at the 1% level. This implies that Consumer
Buying Decision Making can be predicted with Social Media Marketing. Future studies can be
devised to identify additional variable(s) for explaining the CBDM. Extend this study by
considering social media content and other respondents too for further understanding of target
customer’s decision making behavior.
Keywords: Social Media Marketing, Consumer Buying Decision-Making Process
 1. INTRODUCTION
The inception of Social Media Marketing (SMM) is one of the mightily development in the
history of commerce. This particular technical revolution during the last decade has drastically
revolutionized the traditional marketing approaches and brought marketers to a new era.
SMM puts consumers back to the center of the business world and provides marketers a new
set of tools to interact with consumers and to integrate them into the brands through innovative
ways. In essence, marketers have to understand how the social media has influenced
Consumer Buying Decision Making (CBDM).Consumer behavior is an important aspect of
marketing as it assists marketers to devise strong and robust marketing strategies and
techniques. For instance, organizations launch new products or services, which are generally
bought by few customers in the initial phase and gradually, there is an increase in the users.
Today, organizations are employing social media technique in order to change consumer’s
behavior and to win their loyalty.

Nowadays social media becomes part of a person's life. Social media such as Facebook,
Twitter, Instagram or LinkIn has a numeral number of the user and keeps growing every day.
It is estimated that over 500 million people are interacting with social media (Ostrow, 2010).
The number of social media users growing has attracted marketers. Marketers have recognized
that social media marketing as an important part of their marketing communication strategies.
Also, social media helps organizations to communicate with their customers.

These interactions help marketers determine customer needs and understand what their
market might look like. Key business factors of social media allow consumers to estimate
products, make recommendations to contacts or friends, and share any of the purchases
through their social media. Communication through social media has found impact on
consumer decision-making and marketing strategies. Consumer socialization theory predicts
that communication among consumers affects their cognitive, affective, and behavioral
attitudes (Ward, 1974). Also, the advertising on social media page has built new consumer’s
behavior. Consumers tend to make purchases or conduct business on social media.

Recommendations by friends or connections on social media also could help consumers on

decision-making. Those recommendations could help brand attitudes, purchasing attitudes,
and advertising attitudes. The more good responses on the products or services, the more
attractive for consumer purchasing. Most of top brands and services notice it and started to
focus on social media marketing.

Therefore this research attempts to explore how SMM influences on CBDM process. The
specific research question of this study is:

“Does Social Media Marketing influences on Consumer Buying Decision Making Process
among social media users”
It is lack of literature in Sri Lanka to examine the relationship between SMM and CBDM
process. Thus, there exists a clear empirical gap with respect of the influences of SMM on
CBDM process within the context of social media users. This empirical gap becomes a
problem to companies who are promoting their services through social media to know whether
their service is successful or not among the social media users. Indeed, there is a need to
evaluate what extend the SMM influenced on CBDM process among social media users.

2. LITERATURE REVIEW

Based on Rockendorf 2011, thus social media becomes a hub for market intelligence as
marketers begin to understand consumer’s purchasing behaviour and gain insight as to why
consumers feel the way that they do about certain. This article examines the SMM tools, role
of online advertisement, online communities, and E-word of mouth influencing consumer’s
brand loyalty and intentions to purchase. Regarding to Forbes & Vespoli, 2013, The influence
of social media on buying behavior can be in any services or products. Quality, brand,
advertising or price could affect consumer decision-making. The results of this research
present that consumers are buying either inexpensive or expensive items, and are doing so
based on recommendations from social media by their contacts or friends on social media.

University used a sample of 249 consumers' purchases to analyze the type of product
purchased, and the cost of item. The results of this research present that consumers are buying
either inexpensive or expensive items, and are doing so based on recommendations from
social media by their contacts or friends on social media (Forbes & Vespoli, 2013).

The relationship between social media and consumer decision-making present that social
media affects advertising attitudes, brand attitudes, and purchasing intentions of consumer. It
will not necessarily affect consumer’s decision-making, but might possess a mediating effect
(Taining, 2012). Social media can build brand attitudes that affect buying behavior. The good
image of brand or product can lead the consumer to make decision on their purchases. When
consumer’s friend on social media shares or recommends services or products on their social
media, it affects brand attitude and influences their decision-making. Yet, advertising on social
media, which is provided by commercial sources affect both consumer brand attitudes and
purchasing intention (Yang, 2012). From that information, it helps marketers plan their
marketing strategies. Many marketers use social media for marketing campaigns. It is the easy
way to communicate with consumers; also it is inexpensive to advertise their brands or
services.

Social media is not only for advertising, but it can also be a tool for brands or services to
connect with their consumers. Another study shows that social media allows consumers and
prospective consumers to communicate directly to a brand representative. Since most
consumers are using the social media as tool to search and purchase items, brands or services
use this advantage to advertise their products. The online consumer is a booming market
worldwide; however it is giving a globalized level of segmentation cross-culturally (Vinerean,
Cetina & Tichindelean, 2013). If they have some problems on products or services, consumers
could reach the company via social media, which is an easy way to connect and contact with
them. Companies are challenged by how they chose to react to comments or responses on
social media. Their reactions and responses can build strong brand images and get more
consumers to purchase products or services. When a consumer wants to make decision on
product, every single detail could be an influence to their decision-making.

Consumer motives for engaging in social media provide insights into consumers’ activities.
Consumers have three main gratifications or motives for using the Internet as a medium,
namely, information, entertainment, and social aspects (Heinonen, 2011). The motivation is in
two main groups: rational motives, such as knowledge-sharing and advocacy, and emotional
motives, such as social connection and self-expression (Krishnamurthy & Dou, 2008).
Consumers’ activities in social media have been found based on consumers' conduct online.
Nowadays consumers are using Internet as their tools to achieve their motivations. Their
motivation could be connected to their old friends, business, or reviews to support their
decision-making. Reviews on social media become second-hand resources to support
consumer’s decision-making because they want they want value from their dollar. Reviews on
social media not only affect to expensive items, but also inexpensive items as well. People can
see the reviews on cosmetics, books, cars, hotels, or even nail polishes. Those reviews can
motivate purchases or support consumers decision-making by make it more reasonable to
spend the money on it.

Social media does not only effect consumers’ decision making on products or services, but
also it helps in other fields of studies or careers such as political or juror impartiality and fair
trials too. In context of justice system, the easily accessible nature of the Internet has results in
jurors having the ability to consult an online social media source in order to aid their decision-
making and deliberations (Simpler, 2012). Social media helps juror to broadcast their options
about ongoing court. Jurors find some advantages of information or any evidence that can
support their decision and help them making their decision. Twitter is the most important for
sharing news, and information, which is up-to-date. This information may not be confirmed
that it is true or not true but at least it will give the jurors the idea and know what other people
think about the case. Today researchers have found that social media t helps jurors to have a
wide open vision of the case and can also influence to the juror’s decisionmaking (Simpler,
2012).

Another study examined the effect of social media on a person's decision-making by sharing
health information on news and social media. The study observed the coverage of influenza
vaccination on Dutch news sites and social media websites. Dutch news sites and social media
websites were promoting the campaigns of influenza vaccine during February, March, and
April, 2012. From this study the results showed that news media and social media give
different tones in messages. News media reports tended to be more objective and non-
judgmental, while social media more critical of behaviors of Internet users and may influence
the success of vaccination campaigns and recommendations made by health authorities
(Lehmann, Ruiter & Kok, 2013). However, this study concludes that it was a first step in e-
Health announcements. People tend to respond to the news on social media more than news
media. It is attractive and influences people on their decision-making due to the Internet and
might be an important source of health information.

Since people can’t try travel-related products and services before they consume them,
dynamic processes with various amounts and types of information sources have been used
(Fodness, & Murray, 1977). Many studies have found that many travelers used social media as
a guideline for their trip. Reviews of places, hotels, transportation, food, or restaurants could
have large affects on traveler’s decisions. Travel organizations and businesses have used
social media as a communication tool for their audience by posting travel information;
uploading photos, warnings, advice, or sharing personal traveler reviews. Those things can
influence trip's decisions and even create future trip destination impressions. Fifty-eight
percent of U.S. online travel used ratings for their travel information: 49% of them checked
reviews and recommendations: 18% used photos and friends’ social network sites: 12% read
blogs: and 5%watched videos (eMarketer, 2007). Venkatesh, Speir, and Morris (2002) showed
the theory of social influence affected person’s decision-making. People participating in social
media

Activities are usually in communities and appear to be socially influenced by the community
group members. Social influence is defined as the degree to which a person believes that
person to perform a particular behavior (Venkatesh, Speir, & Morris, 2002). From the social
theory, it shows the support of the idea that social media has become a key influence in a
person's decision-making process..., they need confirmation on what they decide is the best.

Based on these literature reviews, this study is taken in to account about how the social media
marketing impacts over the consumer buying decision making. Regarding this study the
hypothesis statement constructed such as below

The hypothesis statement regarding this study is

H0: SMM does not significantly impact on CBDM process

H1: SMM significantly impact on CBDM process

 3. METHODOLOGY

A web-designed questionnaire was designed for this research purpose by using “Google
drive” which can be based on a web link, which can be open in all internet operating systems
such as internet explores, Google chrome, Firefox, and Mac OS, etc. Primary data were
collected for address both dependent and independent variables by based an on-line survey
utilizing a structured questionnaire in a web page format posted in the “wall” of My Facebook
which can be sent to all friends of us. Among 500 friends, about two hundred twenty (220)
friends have been responded to the uploaded questionnaire within the required time frame. The
type of research is deductive and variables are measured with quantitative analysis. Primary
data are collected through structured questionnaires with closed statements measured with
Likert’s scale (1-5 as strongly agree, agree, neutral, disagree, strongly disagree respectively),
based on result from face book respondents. Among 500 friends, about two hundred twenty
(220) friends have been identified using convenient sampling technique (see Table 1).

Table 01: Sampling Framework

Study Setting All social media users

Unit of Analysis Face book respondents

Sample Size Two Hundred Twenty (220) customers

Sample Method Convenient Sampling Technique

4. RESULTS AND DISCUSSION

4.1 Choice of Social Media Contents

There are several social media contents available in worldwide. Within these, Social
Networking Sites (e.g. Facebook), Micro-blogging (Twitter), Blogs/Forums, Social bookings
sites/Social news (e.g. Reddit, Digg), Photo & Video Sharing Sites (e.g. Flickr, YouTube) are
selected for this study purpose. From 220 respondents of 91.81% consumer’s choice is Social
Networking Sites (e.g. Facebook), 4.54% of consumer’s choice is Photo & Video Sharing
Sites (e.g. Flickr, YouTube), and 3.63% off consumer’s choice is Micro blogging (Twitter),
and no one depend on blogs or reddit digg. So with in this social media contents people mostly
prefer to go for facebook references when they make decisions about purchasing (see Table 2).

Table 2

Distribution of social media contents

Choices of Facebook Twitter You Tube Blogs/Forums Reddit, Digg

Social Media
Contents

Frequency 202 8 10 00 00

Percent (%) 91.81 3.63 4.54 00 00

4.2 Variables and Dimensions

4.2.1 Level of Independent Variable and Its Dimensions

Based on the literature review SMM is evaluated with three dimensions: E-word of mouth,
social community and social advertising. SMM as an independent variable has high level
attribute of the customers buying decision making process (Mean X1 = 3.454545 and see
Table 3). In addition, most of the respondents expressed generally a common opinion
regarding the variable of SMM concepts (Standard deviation = 0.6382486). With individual
analysis, it is also noted that about all respondents in this study have high level attribute for the
Social Media Marketing.

Specifically, all dimensions of SMM have high level attributes in relation to their mean values
(mean values of E- Word of mouth Factors X1.1 = 3.66, Social community X1.2 = 3.50 and
social media advertising X1.3=3.205). Among these dimensions, E word of mouth high value
of mean and social media advertising is comparatively lower than other dimension that
contributes to social media marketing.(see table 4)
 Table 3

Overall Measures of Independent Variable

Description Social Media Marketing (X1)

Mean 3.454545

Standard Deviation (SD) 0.6382486

Decision Attribute High Level

Table 4

Measurements for dimensions of SMM

Dimensions of SMM X1
E- Word of mouth 3.66

Social community 3.50

social media advertising 3.205

4.2.2 Level of Dependent Variable and its dimensions

The CBDM is assessed with four dimensions: information search, evaluate the alternatives,
purchase decision and post purchase behavior. Indicatively, all dimensions of CBDM have
high level attributes of respondents in relation to their mean values (mean values of
information search X2.1 = 4.01, evaluate alternatives X2.2 = 3.65, purchase decision X2.3 = 3.50
and post purchase behavior X2.4= 3.832). Among these dimensions, information search Of
CBDM process has high value of mean; and Status is comparatively lower than other
dimensions in contribution to Consumer Buying Decision Making.
 Table 5

Overall Measures of Dependent Variable

Description Consumer Buying Decision Making (X2)

Mean 3.74886

Standard Deviation (SD) 0.403854

Decision Attribute High Level

Table 5

Measures For dimension of CBDM

Description Consumer Buying Decision Making (X2)

information search 4.01

evaluate alternatives 3.65

purchase decision 3.50

post purchase behavior 3.832

4.3 The Relationship between SMM and CBDM

The correlation analysis is initially carried out to explore the linear relationship of SMM
with CBDM, if it exists. Results indicate that there is statistically linear and positive
relationship (r2 = 0.309, p <0.01) between SMM and CBDM. Because dots are show
upward in the straight line. Which mean there is a positive relationship between the social
media marketing and consumer buying decision making. (See picture 1)
 Picture: 01

Thereby, accept the Hypothesis 1 H1 – i.e., SMM impacts on CBDM process.

Table 6

Correlation between SMM and CBDM process

Pearson Correlation: r 0.556**

Sig. (2-tailed) 0.000

** Correlation is significant at the 0.01 level (2-tailed).

According to the table 6 we can emphasize that WE reject the H0: there is no correlation between SMM
and CBDM, because according to the sig (2 tailed) 0.000 significance level. Based on the rejection rule
it is below the 0.05 so we reject the H0 and accept the H1 which is denoted by there is correlation
between SMM and CBDM. When look at the person correlation, it denotes that there is the positive
and strong correlation between SMM and CBDM. So regarding this study we have the conclusion that
SMM impacts on CBDM.
 5. CONCLUSION AND RECOMMENDATIONS

This study considers SMM as independent variable and CBDM as the dependent variable.
While these variables individually have moderate level attributes of the respondents, the
Pearson’s Correlation analysis explores a strong positive linear relationship between SMM
and consumer buying decision making. The correlation coefficient (r2) was 30.9% at the 1%
level. This implies that buying decision making can be predicted with social media marketing.

According to Chui and Manyika (2012),Rockendorf 2011,Forbes & Vespoli, (2013) SMM can
have positive effect on consumer buying decision making. Our study also has the same
positive effect of SMM on buying decision making. Which mean SMM has slight positive
impact on CBDM process.

Recommendation: Based on conclusion some suggestions are put forward to social media
marketers to improve their services. Regarding conclusion some suggestion for them to win
the social media market they are, Good SMM requires in-depth knowledge of its organization
and a solid plan of how it can be used to achieve business goals. Before attempting to promote
their business on the various networks, think about SMM not as a temporary solution that will
get marketers traffic now. And second one is They don’t want to risk losing visitors and
potential customers, make sure they have a very specific SMM schedule that you stick to no
matter what.

6. IMPLICATIONS

Considering the limited time and scope of this research, many theories related to the subject
were covered but in a rather general perspective so as to provide a big picture for the readers.
Therefore, if further research could be conducted, then an in-depth survey should be carried
out in tackling the research objective. This study focuses on one independent variable SMM to
explain CBDM and to explore the relationship between them. However, it is explicit that there
may be other variable(s) to be considered to explain the variation of CBDM. Future studies
can be devised to identify those additional variable(s) for explaining the consumer’s CBDM.
Extend this study by considering social media content and other respondents too for further
understanding of target customer’s decision making behavior.
 REFERENCES:

 Ayda Darban, Wei Li. (2012). The impact of online social networks on consumers’
purchasing decision.

 Elisabeta Ioanăs, Ivona Stoica. (2014). Social Media and its Impact on Consumers
Behavior.

 Ethel Lee,B.(2013).Impacts of social media on consumer behavior- Decision making

process.

 Ostrow (2010). Social Media and its Impact on Consumers Behavior.

 Patarawadee sema (2013). Does Social Media Affect Consumer Decision-Making?

 Rebecca Sawyer (2011). The Impact of New Social Media on Intercultural

Adaptation

 Ward (1974). Impacts of social media on consumer behavior- Decision making

process.

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