The impact of social media marketing on consumer

buying decision
An Empirical Study on Telecom Egypt Company’s costumers

‫تأثير التسويق عبر وسائل التواصل االجتماعى على قرار شراء المستهلك‬
‫دراسة تطبيقية على مستخدمين االنترنت فى مصر‬

DBA-Eng. Business Administration

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Table of Contents

Introduction..................................................................................................................3
Social media................................................................................................................... 3
Social media marketing................................................................................................4
Digital group.................................................................................................................4
Psychographic variables...............................................................................................5
Research Problem.........................................................................................................6
Research Significant.....................................................................................................7
Research objectives.......................................................................................................7
Research Questions.......................................................................................................8
Research Hypotheses....................................................................................................8
Questionnaire Construction.........................................................................................9
Research limitations.....................................................................................................9
Research Methodology...............................................................................................10
Literature review........................................................................................................11
Research Plan.............................................................................................................. 18
References.................................................................................................................... 18

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Introduction

The social media are increasingly influencing and changing the way the consumers
behave, and how they make the decision to buy. In this paper the term "social media" will
be used to refer to online communication channels, while the term "traditional mass
media" will refer to conventional communication media like TV, radio, newspapers, etc.
The consumer decision marketing process consists of 5 stages: Need/problem
recognition, information search, alternative evaluation, purchase decision and post-
purchase decision.

Social media

Social media takes us back to the beginning when people lived in groups and clans and
took decisions together by being affected with each other. By simple definition, the social
media refers to activities, practices, and behavior among communities of people who
gather online to share information, knowledge, and opinions using conversational media
(Web based applications). Today, a web page is a necessity for the marketing mix of a
company, and the social media content is considered as King. Through the social media,
viral marketing is developed, which refers to the strategy of urging the visitors of web
page to share information published on Internet, to their friends, so that, they can inform
more people for a product or event, through photos, videos, etc.

According to google, there are some types of social media, like: Blog, Microblog
(Twitter), Social Networks (Facebook, LinkedIn), Media sharing (YouTube, Flickr),
Social News and Bookmarking (Digg, Reddit), Rating and reviews pages (Yelp), Forums
and Virtual Worlds (Second Life). Using them has many benefits for consumers, such as:
saving consumers time, better informing possibilities, more reliable information, reduced
cost of informing, better communication with companies, and reduced prices. Almost half
of the world’s population used the Internet and the social media, and this trend is in a
rapid rise.
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Social media marketing

It is a method by using social media site to attain the attention of people. These programs
concentrate on developing a content which will attract the attention of the readers in
social media and make them to share the contents in their social networking site.

Any statement that is shared in the social networks, which included short messages,
information about a product or service, brand or a company is termed as electronic word
of mouth. When the information about a product / service / brand / company is shared in
a social media by a user, it is reshaped by many users in other social networks and when
the information is shared by a trustworthy source, it becomes appositive promotion for
the product than the promotion done through paid sources. This shows the power of
social media marketing.

What the major search engines seek for in terms of social media signals are the source's
authoritativeness and trust. Authoritativeness is different from Authorship. Authorship is
a function released by Google in 2011, which permits authors and publishers to add
varied parts, including photos, ratings and more details to search engine results pages.
Trust is fundamental to social signals being read by the search engines. Those people,
whose social media profiles have a trust score, are called as influencers.

As per consumer socialization theory, communication with customers plays an important

role and its influence the psychological feature of customer. It also has an impact of
attitude of the customer. Social media networking sites provides an environment that
enables the consumers to communicate in the web which will have an important impact
on consumer socialization concept.

Digital group

Consumer decision is influenced by reference groups. Nowadays the digital groups are
more influential than ever. There are different “Brand communities”, “Consumer clans”,
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and “Anti-brand communities”, that consist of people who share the same thoughts,
preferences or dislikes toward products. These groups have a huge impact on their
member’s decision, creating so the “crowd effect”, that means that people observe others
decision, and tend to practice it. This is also known as the “wisdom of crowds”, where
the group is considered wiser than the individuals.

Psychographic variables

There are different internal factors that impact consumer decision, known as psycho-
graphic variables, like: motivation, perception, learning, memory, attitude and self-
conception. Studies show that these variables are very influenced and tend to change due
to the social media usage. Perception - Is the process of selecting, organizing and
interpreting stimulus/incentives the individuals are exposed to. The perception process
consists of three stages: exposure, attention and interpretation. Marketers tend to expose
their product to their consumers as much as they can. Even if these stimuli do not
immediately push people to buy, they are memorized in the consumer’s mind, and
whenever they face a need, that stimulus automatically will come to their mind.
According to studies, 1.54 seconds are sufficient for an attractive advertising to draw the
consumer’s attention. Learning and memory - A frequent exposure of stimulus, and the
learning of those stimulus, affects the “family branding “, which means that due to such
frequent exposure, the consumer becomes more familiar with the brand. Social media has
impact on the “observational learning”, according to which, consumers observe others
decision, and learn indirectly from others experiences. According to psychology, people
tend to remember more visual elements, that’s why social media content is supposed to
remain longer in consumer’s mind. Attitudes and interactive communication -
Communication through social media, and its content, can cause changes of consumer’s
attitudes toward different products or advertisements. Self-conception - The beliefs
individuals have toward their attributes, and the way they evaluate them. We decide to
buy some products to be consistent with the real ourselves, and to help us reach the ideal

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self. Managing impressions, means that people work hard on managing what others think
of them.

Research Problem

Nowadays social media becomes part of a person's life. Social media such as Facebook,
Twitter, Instagram has a numeral number of the user and keeps growing every day. It is
estimated that over 42 million people are interacting with social media in Egypt
(datareportal.com, 2020). The number of social media users growing have 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 better 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.

In this research it will be studied the impact of social media marketing in WE telecom
Egypt Company on consumer buying decision. which will measure the relation
effectiveness between two variables: dependent variable consumer buying decision and
how it will be effected by: independent variable social media marketing.
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Research Significant
This study is of significance and interest to various stakeholders. The study mainly
affects the below;

Scholars and Academicians

Researchers can use this study to facilitate further research on other sectors
especially those that are related to social media platforms. The study provides
baseline data that assists people to carry out similar studies among other
organizations where the business environment is similar.

Companies and Organizations

The study assists companies to increase their profits by utilizing their sales
opportunities. The study also helps online retailers through social media to adapt to
the changing consumer tastes and preference to avoid heavy losses when stocks pile
up. The research also aims to serve as an indicator to potential companies of how
they can tap into the market niche of the youth via social media sites.

Online Consumers

Often, online shoppers are not aware of the factors that impact their decisions. The
research provides measures required to ensure that consumers purchase quality
products that suit their needs.

Research objectives
The main objectives of the study show how social media marketing has changed the life
of consumers. Not only traditional media changed but now in modern era social media
marketing has emerging rapidly. People are sharing their views on various social media

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marketing like what’s up, YouTube, Facebook, skype, and many and the aim and
objectives of this study is:

- To determine the impact of social media marketing on buying decision.

- To determine which social media platform has the great impact on consumers buying
decision.
- To find out which is the best social media preferred by customers.

Research Questions
For the purpose of the study, the question arises:

1. Does social media marketing have an influence to purchase decision?

2. How do social media influence the purchasing decision?
3. which social media marketing platform has the major impact on buying decision?
4. Which steps of consumers’ purchasing decision process do online social networks
influence?

Research Hypotheses
As a means to provide communication, selling and relationship to their customers,
company have now turn to social media. This two way communications platform is
perfect for sharing information and opinions. Social media is considered sincerer to
consumers because it communicates what the brand is instead of try to control its image.
This type of interaction enhanced positive attitudes towards the brands, affects stronger
commitment and purchase-decision making process therefore we will try to find out the
outcomes of testing the following hypotheses:

H0: There is no significant impact of social media marketing on consumer buying

decision.

H1: There is a significant impact of social media marketing on consumer buying

decision.
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Questionnaire Construction
The Questionnaire is presented with a list of closed – ended question for information on
Social media and Consumer Buying Decision then Likert-Scale is used to rate statements
on a 5-point from (1 Strongly Disagree to 5 Strongly Agree). Social media marketing is
the independent variable while the Consumer buying Decision is the dependent variable.

A pilot study will be organized to be tested and modified before Questionnaire distributed
to consumers.

Research limitations
- Human limitation: The research sample size is only limited on online users in Egypt.
- Location limitation: Study applied on online users only through survey.
- Time limitation: applied survey will be in the first quarter of 2021.

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Research Methodology
- The study focuses on the impact of social media marketing on consumer buying
decision, the sample size will be 300 consumers from the online.

- for the purpose of testing the hypotheses will be done by

A. Distributing Questionnaire to consumers in stores.
B. Analyzing the Questionnaire results using SPSS software
- Regression models which will be used to test the impact of social media marketing
on consumer buying decision.
Y=α+βX+ε
Y: consumer buying decision dependent variable
X: social media marketing independent variable
α: constant term
β: the coefficient of regression
ε: the error term

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Literature review

Researcher Year Objective Results

This paper had The result showed that the social media
discussed marketing practices in different marketing
purposes have distinct impacts on brand
Usage and
awareness and sales performance, respectively.
Wafaa Effectiveness of
Notably, it was found that the brand awareness
Galal 2016 Social Media
resulted from social media marketing activities
Marzouk Marketing in
positively influenced sales performance.
Egypt: An
Moreover, the brand awareness influenced
Organization
brand loyalty not only directly but also
Perspective
indirectly.

Khaled 2017 This paper had This research suggests that social media have
Alhatem discussed created a phenomenon over the last decades.
Facebook, Instagram, WhatsApp, and Twitter
The Influence
have emerged as the most popular websites and
of Internet and
have continued to grow in popularity. Social
Social Media
networking websites also offer new and
on Purchasing
innovative ways to communicate with other
Decisions in
individuals in a quick manner. Individuals are
Egypt and a
using social media at increasing rates and
Comparison
visiting them quite frequently. These websites
between Egypt
create new opportunities for the companies to
and Kuwait
promote it products, and communicate with
customers. This study makes an important
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 contribution in understanding the role of social
networks in influencing purchasing decisions
among consumers in Egypt; moreover, compare
results from this research, and the one obtained
in the previous study about Kuwait. The
comparison indicates some difference in social
media usage due to lifestyle of Kuwaitis and
the limited average income for the Egyptians.

The Impact of The results indicate that the mobile as a digital

Digital marketing channel has a negative impact on the
Marketing on consumer buying decision through all the
Amira M.
Consumer stages of the consumer buying decision
Omar &
2020 Buying process. Also, re-targeting has a high impact on
Nermine
Decision consumer decisions in the evaluation stage;
Atteya
Process in the then, information research needs recognition,
Egyptian purchase decision, and post-purchase.
Market

Nermeen 2019 This paper had study showed that there was no significant
Mekawiea discussed correlation between consumers’ purchasing
& Understanding decision and participants’ attitude towards FB
The Factors advertising, benefits awareness, corporate
Aly Hany
Driving reputation, and celebrity endorsement.
Consumers’
Purchase
Intention of
Over The
Counter
Medications

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 Using Social
Media
advertising In
Egypt

This paper had The result had stated that all Companies that
discussed are adept at integrating strategic approaches to
the use of social network platforms are likely to
The Impact of
be most successful in reaching, engaging, and
Social Media
maintaining a consumer base moving forward.
on Consumer
Factors that influence brand perception and
Buying
intention to buy include things like the social
Intention
mechanism that drive consumer perspectives,
and the views of others posted demonstrated in
Michael
2017 social media posts. An emerging strategic focus
Pütter
is on the use of user-generated content, content
that is created by consumers in response to
specific brands or brand requests and influences
the perceptions of other consumers. This kind
of strategic approach requires a high degree of
maintenance and companies utilizing this
method should be prepared to designate a
marketing service to the management of online
customer relationships .

Areeba 2017 This paper had The results of this study imply that marketers in
Toor, discussed The Pakistan need to consider the strategic role of
Mudassir Impact of consumer engagement in arousing purchase
Husnainand Social Network intention. They also need to strategically
Talha Marketing on enhance their social media marketing

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 Consumer communication so that the maximum benefits
Purchase of engaging customers can be reaped.
Intention in Marketers should consider offering some
Pakistan: additional support to consumers through their
Consumer social media page design, for example, allow
Engagement as space for consumers to share their related
Hussain a Mediator experiences and opinions of using certain
products or services with other consumers. This
kind of information can help other consumers
to decide on what they want to purchase. By
posting comments and adding reviews about
products or services, other consumers will also
be influenced.

This paper had The results had concluded that social media is
discussed the gaining popularity in contemporary society.
Influence of People and especially companies become more
Social Media successful in their attempts to influence
Mersid
Content on different users via social media and social
POTURAK
2018 Consumer networks in particular. The buzz around
, Sumeja
Purchase products increases the brad equity, which in
SOFTIĆ
Intention: turn drives the sales for a brand.
Mediation
Effect of Brand
Equity

Nufazil 2014 This paper had The results had concluded that social media
Altaf discussed plays an important role in influencing the
impact of consumer’s buying decisions. consumers
social media on regularly read the blogs on internet to view

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 consumer’s online advertisements. They use social media to
buying decision provide feedback about the products/services
they use. Some of the respondents use social
media to view online advertisements to keep
themselves aware of the new products/services.
Consumers also seek opinions about
products/services via social media. Social
media has revolutionized the world of
advertisement and has moved a far away from
traditional advertising. It is agreed that social
media is more informative. Interactive and
more reliable that traditional marketing tools.
Consumer’s analyze the past performance of
product/services via social media by checking
likes and dislikes for it. Various subscriptions
are made by consumers to keep themselves
updated with the new launches and the changes
in the existing products/services. Consumers
are of view that innovative firms use social
media as their marketing tool. Public image of
the company is also build through social media.

Patria 2018 This paper had The results had concluded that social media
Laksamana discussed marketing is significantly impacts both
Impact of purchase intention and brand loyalty. It also
Social Media reveals that purchase intention affects brand
Marketing on loyalty. These findings offer new insights for
Purchase both research and managerial implications.
Intention and

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 Brand Loyalty:
Evidence from
Indonesia’s
Banking
Industry

The paper had The results had concluded that the main
discussed the influencing factors of customers purchase
impact of social decision used in social media are the following:
media on ● Online marketers generated content such as
customer’s paid ads or display banners. Indeed, the
purchase company can create a social media account and
Douglas, decision –Case: published content in order to reach their
Frink, and 2018 Chocolatier customers and prospects. However, online
Ferris Thibaut, France marketers do not have all influencing power on
social media. ● Several previous researches has
shown that customers are more likely being
influenced by their social connection. This
phenomenon is explained by the fact that
customers are easily influenced by someone
they trust and know the reliability.

The paper had The results had concluded the following:

discussed the
- Individual’s level of EI correlates positively to
Anggraeni Impact of
the transformational leadership. - EI level
Permatasari Social Media
2018 correlates positively with transactional
on Consumers’
leadership factor, namely contingent reward.
Purchase
Intention: A
Study of

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 Ecommerce
Sites in Jakarta,
Indonesia

However, the application of such framework in measuring the impact of social media
marketing on consumer buying decision in Egyptian’s Telecommunication sector is still
limited, to the knowledge of the researcher.

Research Plan

The thesis will contain five chapters as follows:

⮚ Chapter One: Research Framework.
⮚ Chapter Two: Theoretical Framework.
⮚ Chapter Three: The relationship between social media marketing and consumer
buying decision
⮚ Chapter Four: The applied study
⮚ Chapter Five: Results and Recommendation.
⮚ References

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