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IMPACT OF DIGITAL MARKETING AND

SOCIAL MEDIA ON PURCHASING DECISION


OF YOUTH (OF BHOPAL)

Research project submitted in partial fulfillment of the


requirements for the degree of:
BCOM Honours
To the

Department of commerce
THE BHOPAL SCHOOL OF SOCIAL SCIENCES
FEBRUARY 2021

Submitted by: Guided by:


Ms. Pallavi Singh Kushwaha Dr. Rasmeet Kaur Malhi
CERTIFICATE

It is certified that the work submitted in the project report titled


“IMPACT OF DIGITAL MARKETING AND SOCIAL MEDIA ON
PURCHASING DECISION OF YOUTH (OF BHOPAL)”, by Ms. Pallavi
Singh Kushwaha, has been carried out under my/our supervision and
this work has not been submitted elsewhere for a degree.

Signature of supervisor

Name: Dr. Rasmeet Kaur Malhi

Department:- Commerce

The Bhopal School Of Social Sciences

February, 2021
DECLARATION

I hereby declare that this project report entitled “IMPACT OF


DIGITAL MARKETING AND SOCIAL MEDIA ON
PURCHASING DECISION OF YOUTH (OF BHOPAL)”
was carried out by me for the degree of BCOM Honors under
the guidance and supervision of Dr.Rasmeet Kaur Malhi,
associate Professor of Department of commerce, BSSS college.
The interpretations put forth are based on my reading and
undertaking of the original texts and they are not published
anywhere in any form. The other books articles and websites,
which I have used are acknowledged at the respective place in
the text. This research report is not submitted for any other
degree or diploma in any other university.
Place:- BHOPAL

Name of the student: - Ms. Pallavi Singh Kushwaha

Class &Year:-BCOM HONOURS, 3rd year

DATE:- 28/04/2021
ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my research guide


Dr. Rasmeet Kaur Malhi, associate professor of Department of commerce
as well as our Principal Father John P.J. who gave me the golden
opportunity to do this wonderful research project on the topic: “IMPACT
OF DIGITAL MARKETING AND SOCIAL MEDIA ON
PURCHASING DECISION OF YOUTH (OF BHOPAL)” which also
helped me in doing a lot of research and I came to know about so many
new things.

Secondly, I would like to thank my parents, friends and seniors who


helped me a lot in financing this project within the limited time frame and
understanding different concepts where I was stuck.
ABSTRACT

The goal of this paper is to research on how the digital marketing has taken over in
the market world and how it has emphasized towards attracting the consumers
towards e- marketing and shopping. Changes in consumer behavior has made many
business and firms to digitalize and work for consumers according to their behavior.
The research shows about 70% of the consumers love to shop online and around
30% is not satisfied with the online market. The major effect of social media has
changed the tastes and preferences of mostly the youngsters (from the age of: 15 to
25). The digital marketing however classifies the wide consumers needs and wants
and the marketers work accordingly. The producers have taken a step towards digital
marketing and promoting their products thoroughly. Thereforeto gain the consumers
loyalty, digital platform is outgrowing for the retailers and consumers interactions.
The social media allows firms to inherit new forms of communication. The
innovative advertisement forms are the best to attract the consumers and to give them
a brief info about the product.
INDEX

CHAPTER NO. PARTICULARS PAGE NO.

1 Introduction 7-14

2 Literature Review 15-18

3 Research 19-20
methods

4 Data analysis & 21-32


interpretation

5 Results and 33-35


discussions

6 References 36-37

7 Annexure 38-41
IMPACT OF DIGITAL MARKETING AND
SOCIAL MEDIA ON PURCHASING DECISION
OF YOUTH (OF BHOPAL)

INTRODUCTION

Who are consumers? What is consumer buying


behavior?
A consumer is a person or group of persons who intends to order, purchase goods,
products for their needs and wants. They purchase certain goods for his/her own
need and uses or for their consumption. They do not resell the goods but utilize it for
their satisfaction.

CONSUMER BUYING BEHAVIOUR:-


Consumer buying behavior is a study of individuals, groups, or firms and all
activities associated with purchasing and use of goods and services to satisfy their
needs and wants.

TYPES OF CONSUMER BUYING BEHAVIOUR


COMPLEX DISSONANCE- HABITUAL VARIETY
BUYING REDUCING BUYING SEEKING
BEHAVIOUR BUYING BEHAVIOUR BUYING
BEHAVIOUR BEHAVIOUR

1. Complex buying behavior:-


This type of behavior happens when consumer is buying expensive and infrequent
type of product. For e.g, while buying a house or a car.

2. Dissonance-reducing buying behavior:


This type of behavior occurs when consumer is highly involved for buying
products but sees little difference between the brands. E.g, while purchasing
diamond rings

3. Habitual buying behavior:


This type of behavior happens when consumers does not think much before
buying and their decision making is low and they buy products very often.

4. Variety seeking buying behavior:


This type of behavior occurs when consumers are not involved with lots of
purchase but keeps on changing their product brands and varities according
to their tastes and preferences.
WHAT IS DIGITAL MARKETING?
Digital marketing refers to online market that utilizes internet or digital based
technologies to promote products and services. It helps in connecting with the
customers and are available 24/7. Though in digital marketing the customers might
not be able to connect to the retailers directly but they can shop anywhere and
whenever they want to. This includes not only social media but, email, web based
advertising and also texts and multimedia messages which are opted by many
marketers as their marketing tactics.

TYPES OF DIGITAL MARKETING

SEARCH PAY-PER-CLICK SOCIAL MEDIA CONTENT


ENGINE MAREKTING MARKETING

EMAIL MOBILE MARKETING


MARKETING MARKETING ANALYTICS
CONCEPT OF SOCIAL MEDIA INFLUENCE ON
CONSUMER BUYING BEHAVIOUR

CONTENT:-
Around the world companies are trying to find out new techniques and ways to keep
them constant in a market. In current year, traditional market is just a small segment.
therefore, many firms are opening digital approaches and are taking help of social
media to advertise their products to increase the value of goods and services provides
by them.

 In understanding the effects of social media on advertisement of brand name


and image is taking a vital control on the world.
 The social media had laid down a vital information carrier and granted the
connection between the retailers and consumers stronger.
 Customer satisfaction is the most imp. point whenever anyone talks about
social media marketing. In the survey- the researcher has found that only 70%
consumers are satisfied will e-marketing and the rest 30% are still dependent
and likely to prefer nearby or local market.
 Social media helps the producer in creating awareness about their products
and boost their sales in every type of market.
ADVANTAGES OF SOCIAL MEDIA ON
CONSUMER PURCHASING DECISIONS
 Brand Awareness: Social media helps in creating the awareness around
the world about a firm's new brand product.

 Helps in Promoting and Advertising: Social media not only aware


the people, the consumers around the world, but it helps the firm to get
recognized and attract new customers to try new product.
 Survival in the market: Social media helps the firm to survive at one
firm will get to know what the other firms are opting, which strategies &
techniques which will help the companies to modify & adopt the new
techniques &new strategies for their survival.
 Connection with the consumer: These days all types of brand
whether it is a skin product, clothing, accessories etc provides the customers
to give their opinions or reviews about the product so that the producers can
connect and understand the consumer preferences and choices. It would help
them to connect improvise their products or brands.
 Customer loyalty: When consumers review and opinions are taken up
happily by the producers, the loyalty increases towards the brand &
consumers might advertise or promote the product. In the research the
customers loyalty was more than 67% than the unlinking one, as the like to
shop again & again through e-market
 Media sites are free: Many social media sites provides the companies
or small businesses to make profile and advertise their product, For e.g.-small
businesses like cake baking, small water stores etc, can easily make their profit
on Instagram these days free of cost. This helps in advertising & promoting
the products easily & conveying directly to the consumers and can easily viral
their business to national and international boundaries.

DISADVANTAGESOF SOCIAL MEDIA ON


CONSUMER PURCHASING DECISIONS
 Time consuming: Though some social media sites are free but they
require a lot more time as the businesses tries to provide good & respective
info about product. Therefore, it takes a lot of time and is a very time
consuming process.

 Decrease in ROI(Rate of interest): Many social sites are required


daily basis interactions as brands or businesses are require daily info. to the
customers, if not there would be decrease in ROI and will reduce the
followers.

 Negative feedback: Due to the options of the reviews are available


feedback can pull one leg downtowards defaming of a brand or a product so
sometimes social media is not a good option for the promotion.
 Difficult in measuring: It is very difficult in measuring the effort and
effectiveness on social media. The interactions with customers are good but
at someplace it's difficult to analyze the business and what measure &
strategies should one can opt for stabilizing in the market.
 Limited social media platform: When someone talks about
advertising in social media platform, the very famous & only Facebook,
Instagram, YouTube, LinkedIn comes in mind but what about the other
platforms? Many people even think the ads which pops in other social media
sites are fake.

 Does not work for all Business: Social media maybe become a good
choice for some business but what about the small business which doest have
the customer loyalty to prove themselves in the market they don't get the
recognition. Therefore, social media does not work for all business but it is
effective for the other high standards companies.
CHAPTER- 2

LITERATURE REVIEW

 Stegmann & Sutton Brady analyzed that online marketing issues, digital
advertising, public relations have a psychological impression in the minds of
customers. Many organisation believes that online marketing can reach
maximum number of potential customers.

 Mo. Irfan in his study on the topic “consumer behavior decisions: Personal
selling & sales promotion” stated that the actions of consumers who want to
buy or not become important parts of individual selling & sales promotion on
partially and simultaneously purchasing decisions. The sample in this study
was 100 respondents. The data analysis, technique in this study uses multiple
linear regressions.

 Sara Radicati, 2010, suggests that from unsolicited commercial email, also
known as “spam” which is an increasing problem for consumers accessing
their email.

 Rowley, 2004, P.26- The digital revolution has impacted consumers and
business alike. The internet – a huge source of information has created a
platform where it has several important marketing aspects and various
companies which has builded 24/7 online E-market for the customers to shop
whenever and wherever they would like to.
 William E Baker in his study suggested the marketing strategies and firm
performance. The marketing and the natural environment have called for
research that connects environmental marketing strategies to the performance
of the firm. This research constructs and examines its relationship with the
firm’s performance.

 Mo. Nagsimha Kanagal of IIM Bangalore , stated in his journal about digital
marketing and its strategies. The digital marketing is also called online
marketing where various firms promotes their brands and products through
online purchasing sites which are available 24/7. Therefore around 70% of the
young generation believes in online shopping.

 Winer (2009) states the opportunity of advertising on blogs, which describes


as a website built around a theme where the users share their opinions and
encourages others to discuss by explanation.

 Mei-Lien-Li in his study stated that the trust is the most important aspect for
any kind a business where we customer satisfaction should be a significant
factor only for purchase intention. Retailers should deliver more values to
shoppers through promotion activities to build a long term and mutually
profitability relationship with shoppers.

 Kiani (1998) has presented in his research a set of guidelines for advertising
on the web. The impact is immediate. Nutella is the perfect example; when
many passionate consumers began creating online opportunities around the
brand where the company intervened.
 Rishika A Kuma,2012 on her topic ”the effect of costumers participation in a
firms social media states the relationship has grew in years and many firms
has opted for advertising on social media as amny users gets attracted towards
ads presented on social sites.

 Mehta and Sivadas, 1995 states that for online buyers, income was predicted
the most importsnt factor of e-purchasing.

 Dahiya Richa, 2012, Gurgaon, states the growth of online shopping which has
conquered the new idea of purchaseing from anywhere and whenever they opt
for. And most no. of E-market consumers are youth. The 21st century
generation has given a new technology to the world in terms of shopping.

 Naveed 2012 on his topic- “impact of social media on consumer buying


behaviour” studies that relationship between the producers and consumers has
so far increased and as well as new type of trust has builded by applying
different strategies and technique.

 Erdogumas and Cicek, 2012- stated that social media marketing concept deals
with the brand loyalty of the customers and is receiving a full attention from
the practitioners.

 Odhiambo,2012 studies the use of scientific research to analyze whether


social media is more effective than a traditional market by a survey to see the
challenges and different perceptions faced by producers.
 P.K Kananan, Hongshuang, 2017 stated in his research that wherever there
are digital technologies in marketing strategy process it will have a significant
impact. Therefore, digital world has not only made us believe on the points of
socializing but also believe to opt for new digital scenerios and to get in media
process.

 Morris N -2009; states in their topic “understanding digital marketing:


strategies for enagaging digital generation” – that the independent marketers
are trying to stabilized in this fast growing world. Inspite of applying many
marketing strategies, the digital marketing had already made a place in the
mindset of thus new generation towards e-market.

 M. Nick Hajili,2014; in their research stated that social media had provided
many new opportunities for the marketers for not only for the sales but to
create a good content and by understanding the purchasers tastes and
preferences.

 Afrina Yasmin, Sadia Tasneem, Kainz Fatema (Bangladesh) in their study on


the topic- “Effectiveness of digital marketing in the challenging age: a
empherical study “states that digital marketing is the most common marketing
tactic which is opted by other firm in the competitive market. It is widely used
to show various elements and to discuss a basic comparision between
traditional and digital marketing.
CHAPTER- 3

RESEARCH METHODS

 OBJECTIVES OF THE STUDY:


 To study the relationship between the modes of digital marketing and social
media.
 To examine the effect of implementation of social media for purchasing decisions
of youth of Bhopal city.
 To determine the possibility of embracing the strategies by online retailers by
registering with the consumers.

 HYPOTHESIS OF THE STUDY:


 H0- There is no significant relationship between effective marketing strategy
and consumer behavior.

 H1- There is a significant relationship between effective marketing strategy


and consumer behavior.

 STUDY DESIGN :
This project will be using primary as well as secondary data. The primary
sources will be used to collect the data from the respondents for the accurate
results for the study whereas the secondary sources are referred for the
theoretical references.

GEOGRAPHICAL AREA :
The research of the project was conducted mainly within the economic
boundaries of Bhopal, MP, India .

 DURATION OF THE STUDY :


The study of this project was done in 40 days.

 DATA COLLECTION PROCEDURE :


The data for this research project is mainly collected from the
questionnaire and some secondary data such as books, journals,
research papers and articles have been used.

 SAMPLE SIZE:
The sample size for this research study is 100.

 DATA ANALYSIS PROCEDURE :


Tables, graphs and descriptive statistical tools are used to analyze the
data collected from the questionnaire, journals, articles and research
papers.
CHAPTER -4

DATA ANALYSIS AND INTERPRETATION

1. Do you like purchasing products online more than nearby


markets

OPTIONS NO. OF PERCENTAGE


RESPONSES
YES
70 70%

NO 30 30%

TOTAL 100
This question analyze about how many respondents like to purchase products
through online sites more than nearby markets, through which about 70% of the
respondents replied that they like to purchase products online and about 30% likes
to buy through nearby markets.

2. How do u get information about products?

OPTIONS NO. OF PERCENATGE


RESPONSES
FRIENDS 11 11%
FAMILY 07 7%
ADS ON TV 13 13%
ADS ON DIGITAL 21 21%
MEDIA
ADS ON SOCIAL 36 36%
MEDIA
SOURCES 12 12%
TOTAL 100
This question analyze about how the respondents get the information about
any product in any type of market. For this responses has been come out in
favour of ads on social media whereas the digital media has the influence on
the respondents more than the other options with a percentage of 36% and
21% respectively.

3. Do you collect information before purchasing the


product?

OPTIONS NO. OF PERCENTAGE


RESPONSES
YES 96 96%

NO 04 4%

TOTAL 100
This question analyze that do the respondents collect information before purchasing
any product. And with a huge favour towards yes atleast 96% of the consumers do
collect info regarding any product before purchasing.

4. which type of social media provides you the relevant


information about any product?

OPTIONS NO. OF PERCENTAGE


RESPONSES
Facebook 15 15%
Instagram 44 44%
Whatsapp 0 0
Youtube 06 6%
Others 11 35%
Total 100

facebook
instagram
whatsapp
youtube
others

This question analyze about that how the consumers get the information from which
social media. And the analysis shows that Instagram had a more impact and vital
information about products with 44%.
5. What type of products do you like to buy online?

OPTIONS NO. OF PERCENTAGE


RESPONSES
Fashion and 65 65%
clothing trends
Beauty 05 5%

Accessories 15 15%

Electronics 15 15%

Total 100

fashion and clothing


trends
beauty and personal care

accessories

electronics and appliances

This question analyze that what kind of products do customers prefers the most
in online shopping and there the questionnaire provides that 65% of the
respondents love to buy fashion and clothing stuff followed by electronics and
accessories 15% respectively.

6. What type of information will you collect while


buying online?

OPTIONS NO. OF PERCENTAGE


RESPONSES
Price 04 4%

Quality 14 14%

Attributes 01 01%
Quantity 0 0

Customer’s 13 13%
satisfaction
All of the above 68 68%
TOTAL 100
PRICE
QUALITY
ATTRIBUTES
QUANTITY
CUSTOMER'S SATISFACTION
ALL OF THE ABOVE

This question analyze that what type of information is collected the most by the
consumers during online shopping. And for this the answer highly believes that the
68% customers like to get all type of info i.e., price, quantity, attributes, quality,
customers satisfaction etc., all these types of info is likely to be collected by them
before purchasing.

7. Do you change your initial purchase preferences after


searching relevant information via social media sites ?
OPTIONS NO. OF PERCENTAGE
RESPONSES
Always 11 11%
Often 23 23%
Sometimes 51 51%
Rarely 10 10%
Never 5 5%
TOTAL 100

always
often
sometimes
rarely
never

This question analyze that does the customers change their preference after
collecting relevant info via social media. And around 51% do changes their
preferences after getting influenced by social media.

8. How satisfied are you by the products ad on various


social media platform?

OPTIONS NO. OF RESPONES PERCENTAGE

More than 80% 14 14%


Between 50-80% 67 67%

Less than 50% 19 19%

TOTAL 100

more than 80%


between 50% - 80%
less than 50%

This question analyze about how much satisfied does consumers get after purchasing
products online. And around 67% are somewhat satisfied between 50-80%.

9. Do you follow fashion brands on social networking


site?

OPTIONS NO. OF PERCENTAGE


RESPONSES
YES 52 52%

NO 48 48%

TOTAL 100

YES
NO

This question analyze that 52% of the respondents follow fashion brands pages on
social media. This has huge influence to buy any product.

10. How much do you agree that social media helps in


acquiring information about fashion trends?
OPTIONS NO. OF PERCENTAGE
RESPONSES
Strongly agree 29 29%
Agree 49 49%
Neutral 19 19%
Disagree 2 2%
Strongly 1 1%
disagree

TOTAL 100

strongly agree
agree
neutral
disagree
strongly disagree

This question analyze that how much does social media helps in acquiring
information about fashion trends. And about 49% consumers do agree that the best
platform to analyze about any product is the social media platform.
CHAPTER- 5

RESULTS AND DISCUSSIONS

FINDINGS:

5.1) This paper suggests that place attractiveness, word-of-mouth customer to customer
marketing, customer service beyond simple product advice, community embeddedness
and informal but meaningful interpersonal relations between shop owner and customers
are some of the key pillars of the strategic marketing approach that should be undertaken
by the retailers for influencing the consumer behavior.

5.2) The findings support a positive impact of marketing strategy on customer


satisfaction, and, in turn, profitability. The researcher demonstrates the benefits of
different digital marketing strategies and social media marketing which lead to increasing
customer satisfaction using both an empirical forecast and a new analytical model.

5.3) A structured questionnaire was given to 100 respondents of Bhopal City to know
their perception and preferences’ regarding various preferences and it was found out that
the age group of 15-25 years constitute the largest group among the respondents who are
excessively influenced by the implication of social media marketing and online
purchasing .

5.4) It has been observed that various factors such as demonstration of the product, fair
prices, ease in transaction, other promotional activities etc plays a vital role in enhancing
the sales and, in turn, profitability of online business concern. So in order to grab the
opportunities in the business environment and prepare for the threats, a rational retailer
should not overlook the following factors.
5.5) Finally, two new findings emerges; first, there is a significant relationship between
the effects of marketing strategies and consumer behavior, and second, customer overall
satisfaction with the firm is positively affected by undertaking effective marketing
strategies.
DISCUSSIONS & CONCLUSIONS

6.2) From the following research it has been observed that the majority of the customers
are reliable on online purchasing. 70% of the consumers are more likely After obtaining
the responses from questionnaires distributed among 100 customers of Bhopal City, the
data obtained was analyzed. After analyzing the data and successfully interpreting, the
researcher would like to make the following suggestion in context of the impact of
marketing strategies on the behavior of consumers of Bhopal City.

6.1) To succeed in business, a retailer has to focus on satisfying its customer’s satisfaction
through having clear cut marketing strategies and integrating its various marketing
activities.

to buy online and the rest 30% has the interest towards the nearby markets.

6.3) Majority of the Customers retailed that they are more likely to buy a product after
seeing a demonstration of the product being used. The most important factor that arises is
the effective promotional activities should be opted because in this fast growing world
youth are more towards the social media and through that most of them get the
information about the product. So a retailer should keep this factor in mind for expanding
his or her sales.

6.4) Ambassador should try to be effective in its promotional activities to communicate


the benefits offered by its products and initiate customers towards purchase and go with
different technologies.

6.5) Rational purchases are those purchases which are mainly based on profit, security,
utility, caution and health. Majority of the customers are likely to buy a product after they
try it at the store which indicates their sense of security.
6.6) Evaluation and analysis should be done before the final implementation of the
marketing mix strategies. The researcher would recommend that a marketing strategy to
be adopted by the marketer should be one that gives maximum profit to the firm and at
the same time offers maximum value to the consumer.

6.8) When the company provides products with a good quality, and though they may
increase the price of the product, the customers will still remain loyal towards the brand
and the product.

6.9) The inherent quality of the Indians to get discounts and best deals are very much
prevalent, though it is not the influencing factor.

6.10) Finally, the more customers are satisfied with regard to the 4p’s of marketing mix,
the higher the rewards of business. Highly satisfied customers are not price sensitive and
they remain customers for a long period of time. They also buy additional products
overtime as the company introduces related products or improvements like a new design
model. Thus, Ambassador should effectively manipulate these marketing mix elements
because it strongly determines the long run survival and profitability of the company.
CHAPTER-6

REFERENCES

7.1) Michael Putter- marketing 3(1) 13/7/2017

7.2) D Chaffey, F Ellis- Chadwick-2019

7.3) Ethel Lee (Turun ammattikorkeakoulu,2013)

7.4)WinaiWongsurawat- journal of direct, data and digital marketing (practice


17/2)- 2015

7.5) Kothari C.R (2019) “Research Methodology”, methods and techniques 4th
edition, new age international publication ltd.

7.6) P.K Kannan- International journal of research in marketing 2017- Elsevier.

WEB REFERENCES :-
https://www.reserachgate.net

https://www.marketinginsidergroup.com

https://www.techjackie.com

https://www.booksgoogle.com

https://www.disruptiveadvertising.com
https://www.marketo.com

https://www.wordstresam.com
CHAPTER- 7

ANNEXURE
QUESTIONAAIRE

Subject- Questionnaire on “IMPACT OF SOCIAL MEDIA ON PURCHASING DECISION OF


YOUTH OF BHOPAL CITY”

 Name: ___________

 Email: _________

 Do you like purchasing products online more than nearby markets?

YES:

NO:

 How do u get information about products?

FRIENDS -

FAMILY -

ADS ON TV-

DIGITAL MEDIA-

OTHER-

SOCIAL MEDIA
 Do you collect information before purchasing the product

YES:

NO:

 Which type of social media provides you the relevant information about any product?

FACEBOOK-

INSTAGRAM-

WHATSAPP-

YOUTUBE-

OTHER-

 What type of products do you like to buy online?

FASHION AND CLOTHING TRENDS

BEAUTY AND PERSONAL CARE

ACCESSORIES

ELECTRONICS AND APPLIANCES

 What type of information will you collect while buying online?

PRICE

QUALITY

ATTRIBUTES
QUANTITY

CUSTOMERS SATISFACTION

ALL OF THE ABOVE

 Do you change your initial purchase preferences after searching relevant information via
social media sites?

ALWAYS

OFTEN

SOMETIMES

RARELY

NEVER

 How satisfied are you by the products ad on various social media platform

MORE THAN 80%

BETWEEN 50- 80%

LESS THAN 50%

 Do you follow fashion brands on social networking site

YES

NO

 How much do you agree that social media helps in acquiring information about fashion
trends
STRONGLY AGREE

AGREE

NEUTRAL

DISAGREE

STRONGLY DISAGREE

GOOGLE FORM USED FOR QUESTIONAAIRE :-

https://docs.google.com/forms/d/e/1FAIpQLSdmFzazi4kZ4oXR8RxZDWO
Bt2Ci6mqp1FSUJkYC3L3gaBKevw/viewform

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