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CONSUMER BEHAVIOR IN THE

AGE OF SOCIAL MEDIA

Instructor: Abhijeet Shrestha


(Summer project)
Researcher: Sandesh Neupane
BACKGROUND OF THE STUDY

The study of consumer behavior in the digital age is rooted in the profound
transformations brought about by advancements in technology and the
widespread adoption of digital platforms.
• Technological Advancements
• Social Media Influence
• E-Commerce Evolution
PROBLEM STATEMENT

In the contemporary landscape of consumer behavior, the pervasive influence of


social media introduces complexities that demand a nuanced understanding.
Some problems are:
• Information Overload and Skepticism
• Authenticity and Transparency in Brand-Customer Interactions
• Influence of Social Media on Identity and Perception
OBJECTIVES

• Examine the Impact of Social Media on Decision-Making


• Understand Information Processing
• Investigate Privacy Concerns and Trust Building
RATIONALE OF THE STUDY

Why is it crucial to understand consumer behaviour?


• Shift in Information Consumption Patterns
• Influence on Purchase Decisions
• Emergence of Social Commerce
LITERATURE REVIEW

• Social Media and Information Seeking:


Research emphasizes the role of social media as a primary source for information seeking and
product discovery.
• Influence of Social Media on Consumer Decision-Making:
Studies consistently show that social media significantly influences the decision-making process of
consumers
• Social Commerce and Online Shopping Behavior:
Social commerce has emerged as a prominent aspect of consumer behavior on social media
platforms.
THEORETICAL FRAMEWORKS AND MODELS

Social Influence Theory:


Overview: This theory explores how individuals' thoughts, feelings, and behaviors are influenced by
others.
Application: Social media platforms are powerful channels for social influence, with peer
recommendations, user reviews, and influencer marketing impacting consumer choices. This theory
helps explain the mechanisms behind these influences.
CASE STUDY AND THEIR IMPLICATIONS

Consumer Behavior Observations:


Influencer Impact: Consumers were influenced by the recommendations and
reviews of social media influencers. The authenticity and relatability of influencers
contributed to trust-building.
FOMO and Trend Adoption: The use of limited-edition products and time-
sensitive promotions created a Fear of Missing Out (FOMO), driving impulse
purchases and trend adoption among consumers.
RESEARCH METHODOLOGY

1. Literature review
2. Research design
3. Sampling strategy
DATA COLLECTION & ANALYSIS

Data collection:
• Data sources
• Online surveys and questionaires
• Observational studies

Data analysis:
• Data cleaning
• Segmentation analysis
• Interpret and draw conclusions
EXPECTED OUTCOMES

• Insights into Online Shopping Behavior


• Evaluation of User Experience
• Influence of Social Media

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