Professional Documents
Culture Documents
BUSINESS ECONOMICS
BBA101
TO
Submitted by Submitted to
Radhika goyal Megha Sharma
BBA 1st Semester
Division B(Evening)
Session 2022 – 23
TABLE OF CONTENTS
Acknowledgement
Introduction
Review of literature
Research methodology
o Research objectives
Data analysis and interpretation
Conclusion
Suggestions
Limitations of study
Bibliography
Annexure
ACKNOWLEDGEMENT
With the profound sense of gratitude and regard, I express my thank to my guide
and mentor Ms. Megha Sharma for her valuable guidance and the confident she
instilled in me, that help me in the successful completion of this project report.
Without her help , this project would have been a distant affair, her thorough
understanding of the subject and professional guidance was indeed of immense help
to me.
INTRODUCTION
The Merriam-Webster dictionary defines social media as “form of electronic
communication (as websites for social networking and blogging) through which users
create online communities to share information, ideas, personal messages, and other
content (as videos).” It also defines networking as “the exchange of information or
services among individuals, groups, or institutions; especially: the cultivation of
productive relationships for employment or business.” Social networks have evolved
over the years to the modern-day variety which uses digital media.
In the last decade, social media received a great boost with an advent of many social
networking sites such as Wikipedia, Facebook, Twitter, Yahoo!360, MySpace,
LinkedIn, Youtube and many more. This enhanced and metamorphosed the ways
individuals interacted and shared common interests in music, education, sports, and
friendship.
The growth of social media within India and the world has been nothing less than
astounding.
This year, eMarketer estimates, 1.61 billion people will log in to social networking
sites at least monthly, from any electronic device. That's a 14.2% gain on social
networker numbers from 2012, and double-digit growth is expected to continue for
another year. By 2017, 2.33 billion people will use social networks.
A key business component of social media is that it now allows consumers to evaluate
product, make recommendations to contacts or friends, and link current purchases to
future purchases through status updates and twitter feeds. In addition, the use of social
media presents a valuable tool for firms in which a satisfied user of a product could
recommend that product (good or service) to other potential users. In essence, the social
media world is slowly taking the place of product reviews and panels found in outlets
such as “Consumer Digest” in previous generations. Where consumers once patronized
trusted retails outlets and relied on employee experts in each department, today's
consumers might often be relying on the recommendation and expert opinion of a friend
or acquaintance found within their social media network.
The companies are looking for taking advantage of increasing trend of customers
relying on social media for their purchases. For social-savvy businesses in India, paid
ads on the networks are becoming standard practice. Ernst & Young surveyed 48
companies in the country that have robust social presences and found that 83% of
respondents used social media advertising this year. The greatest portion of this group
(42%) used these ads to promote an online campaign or contest. The next most common
use of social ads was general brand building.
Social is also taking a notable slice of the overall marketing budget at these companies.
The greatest percentage (42%) reported devoting between 1% and 5% to social, but
another 37% said their social spend was between 6% and 10%. And nearly 22% of
companies reported spending more than 10% of the marketing budget on social media.
Facebook and Twitter remain the properties where companies are likely to expend much
of their social effort. More than two-thirds reported posting on Facebook more than twice
per day, and 62% said they did the same on Twitter.
Even as these businesses have made social a priority, they have been less effective at
tracking their successes on the platforms. When asked how social media engagement
had affected a change in revenue at their company, the overwhelming majority—
78%—said they either didn't know or hadn't measured.
In this background, it is important to study how social media habits influence customer's
purchase decision process. A buying decision process describes the process a customer
goes through when buying a product. It consists of five stages-Problem recognition,
information search, alternative evaluation, purchase decision, andpost-purchase
behaviour.
The study attempts to assess an impact of social media on different stages of purchase
decision process and analyses if the demographic variables mediate the impact of
social media on a purchase process.
REVIEW OF LITERATURE
The social media has aroused a lot of interest among researcher and academicians. As use of social
media is increasing at phenomenal rate and companies showing tendencies of allocating
increasing budget to social media to communicate and reach customers; the study of social media
has been of a great importance to all the stakeholders.
Forbes and Vespoli(2013)investigates consumers who made a purchase of an item based on
the recommendation of a peer or contact via social media results indicate that consumers are
buying either very inexpensive, or very expensive items, and aredoing so based on
recommendations from people they would not consider “opinion influencers or leaders”. In
addition, results indicate a slow shift from more traditional forms of social media like
Facebook to quicker types of social media like Twitter. Numerous respondents indicated their
desire for information now, not even a day or two old, and this research indicates a shift towards
that form of social media which is consistent withgeneral themes of today's social media.
Leerapong andMardjo(2013) examine the factors that influence their online purchase decision
through online social network, particularly Facebook. The customers ranked in order of
importance relative advantage, trust, perceived risk, compatibility as the factors that encouraged
or discouraged them from purchasing product through Facebook.
Sharma and Rehman (2012)find that positive or negative information about a product or a
brand available on the Social Media has significant overall influence on consumers purchase
behaviour. The customers spread positive word of mouth through social media.
Pietro and EleonoraPantano(2012) investigate to what extend social networks, as Facebook,
influence consumer ' s purchasing decision. They find that enjoyment is a key determinant of social
networks usage as tool for supporting the purchasing decision. They also suggest that
consumer's usefulness perception ofrecommendations and suggestions on products on Facebook,
consumers' enjoyment in the use of the socialnetwork Facebook for information searching on
products and brands, and perceived ease of use of the provided tools influence consumers ' attitude
in using the system assupporting tool for their purchasing decision. They also suggest a casual
positive relationship between attitude of customers towards social media and behavioural intention.
Social media has also influenced consumer behavior from information acquisition to post-
purchase behavior such as dissatisfaction statements or behaviors (Mangold&Faulds, 2009).
Themba and Mulala (2012) investigate the extent to which students at the University of
Botswana engage in brand-related eWOM via social media and the effects of such engagement
on their purchase decisions. They report that the level of engagement in brand-related eWOM
via social media is relatively low and engaging in brand-related eWOM generally and
specifically opinion seeking significantly and positively influence purchase decisions.
Most of the studies conducted report that the social media influences purchase decision of the
users;however, there is a need to study whether the impact is likely to vary across different stages.
This will help marketer to set their communication goals on social media strategically and plan
thebudget allocation on social media better.
THEORETICAL FRAMEWORK
SOCIAL MEDIA
Social media is interactive digitally-mediated technologies that facilitate the creation or
sharing/exchange of information, ideas, career interests, and other forms of expression via virtual
communities and networks. Social media are used to document memories; learn about and explore
things; advertise oneself ; and form friendships along with the growth of ideas from the creation of
blogs, podcasts, videos, and gaming sites. Some of the most popular social media websites, with
over 100 million registered users ,include Facebook , TikTok , WeChat, Instagram, QZone , Weibo,
Twitter, Tumblr, Baidu Tieba , and LinkedIn. Depending on interpretation, other popular
platforms that are sometimes referred to as social media services include YouTube, QQ, Quora,
Telegram, WhatsApp, LINE, Snapchat, Pinterest, Viber, Reddit, Discord, VK, Microsoft Teams,
and more. Wikis are examples of collaborative content creation.
DEFINITION OF SOCIAL MEDIA
❖ “Social media are primarily Internet-based tools for sharing and discussing information among
human beings.”
FEATURES OF SOCIAL MEDIA
While challenges to the definition of social media arise due to the broad variety of
stand-alone and built-in social-media services currently available, there are some
common features:-
1. Social media are interactive Web 2.0 Internet-based applications.
2. User-generated content—such as text posts or comments, digital photos or videos, and data
generated through all online interactions—is the lifeblood of social media.
3. Users create service-specific profiles for the website or app that are designed and maintained by
the social-media organization.
4. Social media facilitate the development of online social networks by connecting a user's profile
with those of other individuals or groups.
RESEARCH OBJECTIVES
1. To assess the impact of social media on purchase decision of Indian consumers
2. To study the relationship between personal characteristics of social media users and
impact of social media on their purchase decision.
3. To find out post purchase behavior of social media users.
4. To study relationship between personal characteristics and post purchase behavior of
social media users.
RESEARCH DESIGN
Information search
The next step in the purchase process is to do some research. When a need is identified, the
customer is motivated to seek further information and enter the research phase. The
customer may be more alert or actively seeking out information. When it comes to how much
searching a customer does, it is determined by several factors, including the quantity of
information that the consumer must start, how easy it is to acquire more information, how
much he values the extra information, and how satisfied he is with his results.
Different sources of information are available to buyers or consumers to learn about the
products which they tend to purchase
• Personal sources include members of one's own family, friends, neighbour’s, and other
acquaintances.
• Advertising, salesmen, dealers, packaging, and display are examples of commercial
sources
• Public sources include mass media, consumer rating agencies, and other such entities.
Providing information makes them confidential as well.
• Sources used in experiments include handling, inspecting, and employing. Because of this,
the information becomes crucial and private.
The third step in the purchasing process is to evaluate the options. Different alternatives
and their attractiveness are evaluated using various pieces of information gathered from
various sources. Different customers utilize various grounds for assessing goods and
services. To make an informed decision, buyers often weigh the benefits and drawbacks of
several options based on the product's features, importance, trust in the brand, and other
factors.
Purchase decision
At this point in the buying process when the consumer makes their purchase. Consumers
make purchases after weighing their options. They go for the most reputable brand when
making a purchase. However, the attitudes and situational factors of others would affect
their decision. Typically, they will go with the brand that is most familiar to them. However,
buying intention and purchase choice can be influenced by two things. The first thing to
consider is what other people think of the consumer. Unexpected situational variables are
the second consideration. The consumer's purchasing intention may be influenced by
variables including the expected price and the expected advantages of the product.
0%
100%
Yes No
Interpretation
Out of total respondents in this survey all the participants use social media. It can
be interpreted that social media has a great influence in the day to day life of the
people.
Figure No:4.2
Shopping Chatting Information Make Friends
Interpretation
Most of the respondents use social media for information. Along with this they
also use social media for chatting. Only few use social media for shopping and
making friends.
Interpretation
Out of 30 respondents, majority of them are using what’s app daily. Some of
them are also using Twitter . Only few are using Facebook and Instagram
daily
Table No:4.4 Time spent on social media per day
Time spent 0 hour 1-5 hour 5-10 hour 10 hours or
on more
social media
per day
Number of 1 20 9 0
Respondents
Interpretation
Out of total respondents in this survey, majority of them spent time on social
1-5 hours per day. Some of them spent 5-10 hours per day. None of them
spent 10 hours or more on social media. Only one respondent is not spending
time on social media daily. It can be interpreted that social media has become
part of our daily life.
Interpretation
Out of total people participated we can understand that most of the
respondents are paying attention to advertisements on social media. Some of
them are not paying attention to social media. Some of them may be paying
attention to advertisements on social media.
Number of 25 5
Respondents
Figure No:4.6
Yes No
Interpretation
Most of the respondents trust on social media. Still 5% don’t have trust on
social media.
Interpretation
Out of 30 respondents , the buying decision of 19 respondents are influenced
by social media. Buying decision of 5 respondents are not influenced by social
media. Buying decision of 6 respondents may be influenced by social media.
Interpretation
From the above figure we can understand that 25%-50% of purchase of 14
respondents are influenced by social media. Along with this 50%-75% of
purchase of 3 respondents and below 25% of purchase of 13 respondents are
influenced by social media. It is interpreted that 75%-100% of purchase of
none of the respondents are influenced by social media.
Figure No:4.9
1st Qtr Social media Friends&relatives Advertisements
Interpretation
Friends and relatives are the most preferred source of information for
buying decision and next mostly preferred source is social media. The least
preferred source of information for buying decision are company’s websites
and advertisements.
Table No: 4.10 Type of social media that influence purchase decision
Type of Instagram Facebook Youtube Blog post
social media
that
influence
purchase
decision
Number of 16 5 6 3
Respondents
Interpretation
Purchase decision of most of the respondents are influenced by Instagram
and YouTube. Only few of them are influenced by Facebook and blog post.
Figure No:4.12
Low price Saves time Quality of Easy to Offers & discounts in social media
the product make
payment
Interpretation
From the above table we can understand that most of the respondents are
motivated by offers & discounts in social media to shop through social media.
Along with this they are also motivated by factors like low price , saves time,
quality of the product. Only of few of them are motivated by the factor easy
to make payment.
Table No:4.13 Mostly Preferred online shopping sites
Mostly Flipkart Myntra Amazon
preferred
online
shopping sites
Number of 11 9 10
Respondents
Interpretation
Flipkart is the online shopping site that is mostly preferred and next mostly
preferred app is amazon.in. The least preferred app is Myntra.
Interpretation
Most of the respondents have the opinion that there is more information &
easier access in social media compared to traditional media. Some of them
have the opinion that social media saves time & has information reliability
compared to traditional media. Only few of them have the opinion that social
media has better communication with other consumers and business
compared to traditional media.
Figure No:4.15
Strongly Agree Agree Neutral DisAgree Strongly disagree
Interpretation
More than 40 respondents agree with statement that social media increased
knowledge regarding different products and services. 11 respondents don’t
have particular any particular or strong opinion. Only 12 respondents
strongly agree with the statement and none of them strongly disagree with
the statement.
CONCLUSION
This study shows that social media has a great influence in the behavior of
the consumers. Discounts and deals on social media, likes and comments
about the product, social media influencers, reviews about the product in
social media are the factors that influence consumer behavior. It is also clear
from the study that social media has many advantages compared to
traditional media. Consumers are attracted towards the products by
watching advertisements in social media. It is found that offers & discounts
in social media is the factor that motivate consumers to shop through social
media platforms. According to the survey Flipkart is most preferred online
shopping site. Most of the people are using information available on social
media in case of uncertainties regarding a product. It can be concluded that
social media has the power to influence potential consumers from start until
the stage of a purchase and beyond as well. It also enhanced the knowledge
of consumers regarding the products and services. There is no doubt that,
importance of social media will increase in future .
SUGGESTIONS
o Advertisements on social media should be made more attractive so
that more people will be paying attention towards it.
o Social media can provide more information about the products and
services, which will improve the knowledge of the consumer.
o Information provided on social media should be correct and reliable
,which will increase the trust of the people.
o More offers & discounts should be made on products in social media,
so that more people will be motivated to shop through social media
platforms.
LIMITATIONS OF THE STUDY
o Social media marketing is not a new aspect and it is always
changing and evolving. There are many journals/articles on this
topic but very few link social media with changes in consumer
behaviour. The study is presented in a general manner.
o Data sample was quite small that shows limited generalizability of the
study conducted. Sample size should be increased as it would cover
more people in the society and help create a better and accurate set of
results.
o The people who participated in the survey were mainly from Delhi,
but the study can be conducted on a broader scale by collecting data
from different parts of the world to get a better picture of the impact
social media is having on consumer buying process.
o As cultures and values change from country to country, consumer’s
buying behaviour may also vary. A study involving many countries
should be conducted on this topic for more accurate and generalized
results.
o As the study was limited to a specific time period, i.e. May 2020. Thus,
it cannot be used to analyse behaviour over a period of time as the
timing is not guaranteed to be representative.
o In order to increase the level of focus of the study objectives have been
narrowed down and the research only contains information on what
needs to be studied considering the objectives.
o Data was collected from the members of the population who were
conveniently available and able to participate in study. This may lead
to a bias error and also may be an untrue representation of the
population.
BIBLIOGRAPHY
1. Keith A. Quesenberry, “ Social Media Strategy”- Third Edition
2. Claudiu v. Dimofte, Curtis P. Haugtvedt, Richard F. Yalch, “ Consumer
Psychology in a Social Media World”
3. Nripendra P. Rana , Emma L. Slade, Ganesh P. Slade, “ Digital and Social Media
Marketing”
4. Barry Connolly, “ Digital Trust”
5. Barbara Cruz, “ Purpose of Social Media”
6. Mufit Aydin, “ Social Media Marketing’s Impact on Brand Perception”
7. Gohar F. Khan, “ Creating Value with Social Media Analytics”
8. Brittany Hennessy, “ Influencer”
9. Philip Graves, “ Consumerology”
10. Nathalie Nahai, “ Webs of Influence”- 2 nd Edition
11. Jerry C. Olson, “Consumer Behavior and Marketing Strategy”
12.www. clootrack.com
13.https://www.easymedia.in
14.https://en.wikipedia.org
15. https://www.webfx.com
16. https://www.shareyouressays.com
17. https://businessjargons.com
18. https://www.omniconvert.com
ANNEXURE
1. Do you use social media?
• Yes
• No
2. You use social media for?
• Shopping • Chatting
• Information • Make friends
3. Which of the following type of social media are you using on a daily
basis?
• Facebook • Instagram
• What’s app • Snap chat
4. Time you spent on social media per day ?
• 0 hour • 1-5 hours
• 5-10 hours • 10 hours or more
5. Do you pay attention to advertisement on social media websites?
• Yes • No
• Maybe
6. Do you trust social media?
• Yes • No
7. Does social media influence your buying decision?
• Yes • No
• Maybe
8. How much of the purchase do you feel was influenced by social media?
• Below 25% • 25%-50%
• 50%-75% • 75%-100%
9. What is your preferred source of information for buying decision?
• Company’ website • Social media
• Friends & relatives • Advertisements
10. Which type of social media influence your purchase decision?
• Instagram • Facebook
• You Tube • Twitter • Blog Post
11. In your opinion which of these factors drives your attention in social
media?
• The frequent exposure of products/advertisements
• Visual elements of advertisements & products
• How important a product is to me
• How much a product is liked, commented & shared by others
12. In your opinion which of these factors motivate you to shop through
social media platforms ?
• Low price • Saves time
• Quality of the product • Easy to make payment
• Offers & discounts in social media
13. Which of the following online shopping sites are mostly preferred by
you?
• Flipkart • Myntra • Amazon.in
14. In your opinion what are the advantages of social media compared to
traditional media ?
• There is more information and easier access
• Information reliability
• They save my time
• Better communication with other consumers and business
15. Do you agree with the statement that social media increased and
enhanced my knowledge regarding different products and services ?
• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree