THE IMPACT OF SOCIAL MEDIA ON

MARKETING ON CONSUMER BEHAVIOUR : A

COMPREHENSIVE ANALYSIS

Bachelor Of Business Administration (Oil and Gas

Management)

Under the Guidance of

DR. SHATRUGAN YADAV

Submitted By:
TANAY CHANDEL
SAP ID: 500083858
Roll No: R170220035
School Of Business
 UNIVERSITY OF PETROLEUM & ENERGY STUDIES
School of Business, Dehradun

Dissertation On:
THE IMPACT OF SOCIAL MEDIA ON MARKETING ON CONSUMER
BEHAVIOUR : A COMPREHENSIVE ANALYSIS

Program

Logistics Management

2021-2024

Guided By:
DR. SHATRUGAN YADAV

Submitted By: TANAY CHANDEL

BBA Logistics Management
5th Semester
 R170220035
SAP ID 500083858

Mentor Agreement Form for Dissertation

I___ TANAY CHANDEL_, student of BBA Logistics Management Semester 5th , with
Enrollment number_ R170220035__ and SAP ID_500083858 will undertake
Dissertation in the topic __

THE IMPACT OF SOCIAL MEDIA ON MARKETING ON CONSUMER

BEHAVIOUR : A COMPREHENSIVE ANALYSIS

under the guidance*of ___Dr Navneet Rajoria_ and will submit the synopsis latest by 20th of
December 2020.

Student Name: TANAY CHANDEL_, Mentor Name: Dr. SHATRUGAN YADAV

Signature Signature

HOD Name: Dr Neeraj Anand

Signature

* The guide for dissertation I will guide the student for dissertation II also. In case of change
“no objection” from the guide of dissertation I should be taken in following format.
 STUDENT DECLARATION

I hereby solemnly declare that the report(

THE IMPACT OF SOCIAL MEDIA ON MARKETING ON CONSUMER BEHAVIOUR :
A COMPREHENSIVE ANALYSIS) is based on my own work carried out during the course
of our study under the supervision of (Dr. SHATRUGAN YADAV).

I assert the statements made and conclusions drawn are an outcome of my research work. I
further certify that;
● The work contained in the report is original and has been done by me under the general
supervision of my supervisor.

● The work has not been submitted to any other Institution for any other
degree/diploma/certificate in this university or any other University of India or abroad.

● We have followed the guidelines provided by the university in writing the report.

● Whenever I have used materials (data, theoretical analysis, and text) from other sources, I
have given due credit to them in the text of the report and giving their details in the
references.

Name: TANAY CHANDEL

SAP ID: 500083858
Roll No.: R170220035
Course: BBA Logistics Management
Batch: 2021-2024
 ACKNOWLEDGEMENT

I would like to express the deepest appreciation to my Professor Dr SHATRUGAN YADAV,

who has the attitude and the substance of a genius: he continually and convincingly conveyed
a spirit of adventure in regard to research and an excitement in regard to teaching. Without his
guidance and persistent help this dissertation would not have been possible.

TANAY CHANDEL
BBA Logistics Management
Contents
INTRODUCTION.....................................................................................................................................6
BUSINESS PROBLEM AND JUSTIFICATION..............................................................................................8
REVIEW OF LITERATURE........................................................................................................................9
Research Gap.......................................................................................................................................11
RESEARCH OBJECTIVE.........................................................................................................................11
RESEARCH METHODOLOGY.................................................................................................................12
EXPECTED FINDINGS............................................................................................................................14
Conclusion...........................................................................................................................................15
Limitations of Research.......................................................................................................................16
REFERENCES........................................................................................................................................17
 INTRODUCTION
Social Media Marketing

Marketing has recently undergone significant changes in the way information is delivered to
the customers (Mangold and Faulds, 2009). Social networks (SN), as a part of Web 2.0
technology, provide the technological platform for the individuals to connect, produce and
share content online (Boyd and Ellison, 2008). As such, for brand owners, they offer the
potential for (1) advertising—by facilitating viral marketing,

(2) product development—by involving consumers in the design process, and (3) market
intelligence— by observing and analyzing the user generated content (UGC) (Richter et al.,
2011).

As an outcome of this change in the field of marketing, a new phenomenon, generally known
as social media marketing (SMM) was introduced. Social media marketing, a form of WOM
marketing, but also known as viral marketing, buzz, and guerilla marketing is the intentional
influencing of consumer-to-consumer communication through professional marketing
techniques (Kozinets et al., 2010). This is not to be seen as a replacement for the traditional
marketing techniques but rather as an additional marketing channel that could be integrated
with the traditional ones as a part of the marketing mix.

The advantage of this new electronic channel is that it can be used to communicate globally
and to enrich marketing toward consumers at the personal level (Mangold and Faulds, 2009).
Through users‘ feedback or by observing conversations on social media, a company can learn
about customers‘ needs, potentially leading to involvement of members of the community in
the co-creation of value through the generation of ideas (Palmer and Koenig-Lewis, 2009).
Despite the general popularity, viral marketing on SNSs has not yet reached the high
expectations set (Clemonset al., 2007).

Although many SMM channels have already been created, how these channels are being
used, what their potential is and how consumers interact remains largely unknown.

2012; Harris and Rae 2009; Mangold and Faulds, 2009).

SMM can be defined as usage of the existing social media platforms for increasing the brand
awareness among consumers on online platforms through utilization of the WOM principles
(Drury, 2008). As such, it supports two forms of promotion: (1) traditional marketing
promotion, which refers to the communication driven by the companies towards their
customers and (2) social promotion, which is unique for social media platforms and is
embodied within the consumer-to-consumer communication (Mangold and Faulds, 2009).

Social media marketing is related to relationship marketing, where the firms need to shift
from ‗trying to sell‘ to ‗making connections‘ with consumers (Gordhamer, 2009).
Companies also need to keep away from

‗big campaigns‘ and stick with ‗small acts‘ since some small campaigns can easily reach lots
of people and accomplish the objectives in a very short period of time (Coon, 2010).

Social Media and Face book

Various definitions describe social media as ‗content that has been created by its audience‘
(Comm, 2009); as ‗online tools and platforms that allow internet users to collaborate on
content, share insights and experiences, and connect for business or pleasure (Strauss and
Frost, 2009, p.326). There is a definitive typology of different types of social media (Kaplan
and Haenlein, 2010), but it is common to differentiate among social networking (e.g.
Facebook), professional networking (e.g. LinkedIn), Video-sharing (e.g. YouTube), picture
sharing (e.g. Flickr), social bookmarking (e.g. Delicious, Digg), social sharing of knowledge
(e.g. Wikipedia), micro-blogging (e.g. Twitter), blogs (e.g. blogger), and user forums. The
common characteristic is that these social media allow individuals and entrepreneurs to
engage in social interactions, in a way and on a scare that were not possible before (Fischer
and Reuber, 2011).

Attracted by the large number of users, companies have created brand communities in social
media such as Facebook, which boasts having more than a billion monthly active users
(Facebook, 2013). Facebook initially began as a series of forums through which young
people connected, and rapidly evolved into important platforms for social and commercial
exchange.

When a registered Facebook user visits a page, that user can become a fan by clicking on the
button‗like‘. This permits the owner of a page to post informational content that will appear
in the news for their fans, who will react by liking it, commenting on it and sharing it. In this
way Facebook gives brands a voice and establishes an active conversation with Facebook
users. Essentially on Facebook, users can participate in the following types of activities
(Patterson, 2012): Status updates. Facebook messages, Facebook wall posts, Facebook pokes

Smith et al. (2012) reviewed studies on Facebook and concluded that they have focused on
the site‘s functionality and norms and how and why people use it, as well as identity
management and self presentation on the site. However, it remains to be seen whether the
investments in Facebook are well spent. While much is written on pages that garner a lot of
‗likes‘ and fans, the extant literature is mostly silent regarding Facebook effectiveness to
reach customer engagement. In fact, Chapman (2008) recommends looking beyond the
‗friend‘ and ‗fan‘ metric since they are a simple numbers game. Business Problem and
Justification

BUSINESS PROBLEM AND JUSTIFICATION

XYZ Company is in trouble because it's selling less and losing customers in the online
shopping world. This happened because many other companies are also selling things online,
and XYZ hasn't kept up with what customers want. Their advertising isn't working well, and
sometimes they can't deliver products on time. This is a big problem because it's not just
about losing money now—it's about making sure the company can stay in business for a long
time. To fix this, XYZ needs to come up with smart ways to advertise, make sure they have
the right products, and deliver them to customers on time. If they don't do this, they could end
up going out of business.

REVIEW OF LITERATURE

CONSUMER ATTITUDES

It is vital for retailers and marketers to be aware of the factors that affect consumer attitudes
and motives because consumers are increasingly creating content about brands, something
previously controlled solely by companies (Heinonen 2011). As a result, current research has
examined what aspects of social media sites affect consumer attitudes and motives. Chu
(2011) examined the link between Facebook brand related group participation, advertising
responses, and the psychological factors of self- disclosure and attitudes among members and
nonmembers of Facebook groups. The study determined that users who are members of
groups on Facebook are more likely to disclose their personal data than nonmembers are. Chu
(2011) that explains group participation and engagement with online ads requires a higher
level of personal information because users openly reveal their connections with Facebook
groups and promote brands or products when they pass on ads to their friends. "Facebook
groups

provide channels that consumers deem useful when seeking self-status in a product

category, as does passing on viral content about brands to their social contacts" (Chu 2011).

Chu (2011) has also found that users who are Facebook group members maintain a more
favorable attitude toward social media and advertising. Users who have more positive
attitudes toward advertising are more likely to join a brand or a retailer's Facebook group to
receive promotional messages. Based on this result, Chu (2011) suggests that a link exists
between consumers' use of and engagement in group applications on social media sites. The
relationship between consumers' use of and engagement with group applications influences
the rate and effectiveness of advertising on social media, particularly Facebook. Generally, as
Chu (2011) notes, Facebook's college-aged users have the most favorable attitudes toward
social media advertising and are the largest growing demographic, which suggests that social
media sites are a potentially rich platform for online advertising campaigns, especially for
companies with a younger target market.

Cox (2010) also investigated the correlation between age and attitude and found that social
network user attitude toward online advertising formats (i.e. blogs, video, and brand channel
or page) differed to some extent across age groups. She explains that users who fall in the 18-
28 age brackets had strong positive attitudes towards blogs, video, and brand channel ad
formats. This was because users found these ad formats to be eye catching, informative, and
amusing. The 35-54 age groups preferred ad formats on video and brand channels because
they found them to be more eye catching, informative, and had better placement within the
online page layout. Overall, online advertising formats with positive attributes are welcomed
by users; however, ads thatare intrusive or interfere with online social networking activities,
such as pop up, expandable, or floating formatted ads were disliked by network users (Cox
2010).

According to Chi (2011), users perceive advertising differently depending on the social
network, which suggests user motivations for online social networking may play a vital role
in defining consumers’ responses to social media marketing. As mentioned previously in the
explanation of Pookulangara and Koesler's (2011) study, the technology acceptance model
(TAM) was also used by Harris and Dennis (2011). Harris and Dennis (2011), however, used
TAM as a loose framework that combined trust and the factors associated with TAM (i.e.
perceived enjoyment, ease of use, and usefulness). The TAM determined that consumers,
specifically students, hold a hierarchy of trust when using social media such as Facebook.
Students trust 'real' friends, then Facebook friends, followed by expert blogs and independent
review sites and lastly celebrities and e-retailer sites (Harris and Dennis 2011).

Di Pietro and Pantano (2012) conducted further research using the TAM to discern that
enjoyment is the major factor that influences consumers to use social networks as a platform
for assisting in their buying decisions. They found that the fun provided by Facebook, as well
as the opportunity it provides users to ask for suggestions in an easy and entertaining way,
motivates individuals to pay more attention to the products promoted on Facebook.
"Facebook promotes a consumer to consumer approach, exploited by consumers to share
experiences and create a common knowledge on products and services; on the other, it
provides managers a direct channel for communicating with clients through a business to
consumer approach" (Di Pietro and Pantano, 2012). Retailers can improve their Facebook
page appeal by adding games,

contests, and interactive applications, which can attract more users (Di Pietro and Pantano,
2012).

However, retailers also need to be educated on consumers attitudes when it comes to social
media marketing. A deeper understanding of how consumers perceive social marketing will
help ensure marketing strategies are effective. Consumer activities of consumption,
participation, and production are not related to just one motivation according to Heinonen
(2011), who concluded that consumer activities are a combination of a variety of motivations.
The classic notion of individuals as mere consumers is outdated; consumers can now be seen
as active producers of business value because user generated content is reducing the influence
of traditional marketing tactics (Heinonen 2011). Awareness of consumer's motives is
important because it provides a deeper understanding of what influences users to create
content about a brand or store.

Research Gap
As many research has been done on Social Media Marketing on consumer buying behavior,
but no research is done on “A Study on Social Media Marketing on consumer buying
behavior with special reference.

RESEARCH OBJECTIVE

1. To find out which types of posts: content or media type encourage customer online
engagement.

2. To exam

3. ine the factors that influence customer online engagement.

4. To analyze the relationship between social media marketing and customer

engagement.
RESEARCH METHODOLOGY
RESEARCHHYPOTHESIS

This analysis has been done to know the hypothesis that how people of different age groups
use social media and what is their perception towards it and how much they are satisfied with
the purchasing of social media.

NULLHYPOTHESIS

Consumers are not satisfied with the online shopping from social media platform.

ALTERNATIVEHYPOTHESIS

More and more consumers are satisfied with the online shopping from social media in
comparison to local market.

DESIGNOFTHERESEARCH

In the current study, most qualitative primary data was gathered through a questionnaire that
was pre-codedandpre-
testedinthesurroundingcity,whilesecondarydatawasgatheredfromnumerous social media
pages, literature reviews, national and international journals, and theses.

Duration of the study :6 MONTH

Samplesize: 100

Samplingtechnique:Simplerandomsamplingthroughthequestionnairefromthepopulationofcity
of Bhopal

Datacollectionprocedure:WiththeassistanceofGoogleForms,datawasobtainedviaanonline
survey questionnaire. The researchers used a common questionnaire to create a useful tool for
evaluating social media ads and customer purchasing habits. An online survey, which has
increased in popularity since it was first widely used, is a structured method of collecting data
from a targeted audience across the Internet. Google Forms, on the other hand, is a well-
known method for performing online surveys. It's a Google-provided cloud-based data
analysis tool for developing and constructing web-based questionnaires. Before doing the
study's online poll, the researchers first asked the participants for permission.Researchers sent
out questionnaires to possible responders in Bhopal City by submitting and sharing links to
an online survey questionnaire.

After the questionnaire was sent out, data was collected through online replies, tallied, and
analysed statistically using the right statistical methods.

How the data will be analysed: descriptive statistics will be used on qualitative data.

Instrument for collecting data: For this study, the researchers used first-hand information,
such as sending an organised questionnaire to people online. In order to get information for
social media marketing, the poll was mostly about how social media affects how people act.
The study looked at how the Internet changes the way people act and was done in Bhopal, a
nearby city. The results show that the effectiveness and power of social media ads are highly
linked to how people buy things, and that the quality of the content, the ease of use, and the
number of visits all have a positive effect on people's plans to buy. Researchers also updated
surveys that focused on different experiments that looked at how people buy things to find
out how people buy things.The model shows how marketing inputs and environmental factors
affect buyer traits (like attitude, cognition, and knowledge) and decision-making processes
(like buying something and acting afterward), as well as how these factors affect the buyer's
reaction. On a 5-point Likert scale, people can rate how they answered the questions on the
form. The descriptive ranking, pick of means, and description would be used to find the mean
of the indicators.
EXPECTED FINDINGS
This study aimed to identify certain factors that affect consumers' online and offline
purchasing intentions, as there were few studies on the subject in India. Even though social
media has been around for a while in India and is being used for a variety of purposes, there
are still some businesses that do not see the value in it.Just a few online stores allow
consumers to shop directly from their social media accounts The results suggest that
purchasing intent is one of the most significant variables in evaluating real purchase
behaviour as customers browse for goods and services on social media. In a social media
context, the study identified a number of antecedent factors that affect consumers' online
purchasing intentions. Consumer behaviour and social media are influenced by a variety of
factors such as class, gender, age, and many others. There are numerous social networking
sites, such as Twitter, Instagram, Facebook, Blogpost, You Tube, and others, that influence
consumer behaviour. By comparing online and offline retail sites, it is easy to infer that social
media has a stronger impact on customer behaviou
Conclusion
The findings gained from this study will be able to contribute to the body of literature in
a number of ways. First, this study extends the knowledge on how social media
marketing effects can be related to consumer purchase intention. In a rapidly evolving
technology world, it appears that India has also experienced a rapid growth of social media
usage in the last few years, which render a specific study to be conducted within the
country context. The findings support the fact that many Indiais are very much engaged
with social media platforms such as Facebook. While studies in the past have concentrated
on social media marketing by using the UGT as an approach, majority had focused on the
reason users attended to certain media. Nonetheless, this study is able to expand on the use
of the UGT to highlight the outcome of social media marketing and its impact on
consumer purchase intention. In that regard, this study has shown that social media could
be used as a marketing tool to successfully arouse consumer purchase intention. Given that
the social media has unique features which allow for viral effects, consumers could be
offered greater opportunities to share their personal experiences and other additional
information with regards to brands, products or services. This strategy can highlight the
possible effect of consumer engagement in purchase intention. Further, unlike prior studies
that looked at the impact of social network on education and pedagogical implications, this
study is more business inclined in nature as it investigates the effect of social media on
purchase intention.
The results of this study imply that marketers in India need to consider the strategic
role of consumer engagement in arousing purchase intention. They also need to
strategically enhance their social media marketing communication so that the maximum
benefits of engaging customers can be reaped. Marketers should consider offering some
additional support to consumers through their social media page design, for example, allow
space for consumers to share their related 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 strategy
will enable marketers to acquire the relevant information concerning the consumption
attitude of users of social media platform which can then be used to improve their
marketing
Limitations of Research
Although this study has provided satisfactory results, a single hypothesis was used to
test the influence of social media marketing on customer engagement. A more comprehensive
study using a number of other hypotheses in different cultural contexts can be examined in the
future. This could include a larger sample size and more variables to test and predict the
influence of social media marketing on customer engagement.
Furthermore, different brand pages elicit various user motivations for participation and result
in unique engagement with the content, which was not investigated in this study.
Understanding the motivations associated with various brand pages is critical and requires
further investigation. It also remains unclear whether people like what they like or what others
like. Moreover, because of the limit of algorithms, future studies should incorporate data from
more social networking sites. The development of measured indicators that make it possible to
monitor and evaluate engagement behaviours in social networking sites is important for the
design of organizational strategies both for the firm itself and for its brands.
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