The Effect of Social Media on Consumers Buying Behaviour
Abstract of The Effect of Social Media on Consumers Buying Behaviour
The study examined social media advertising and buying behaviour of Babcock University undergraduate students, a study Babcock University undergraduate students.
The study employed the survey design and the purposive sampling technique to select 450 students across all faculties. A well-constructed questionnaire, which was adjudged valid and reliable, was used for collection of data from the respondents. The data obtained through the administration of the questionnaires was analyzed using the Pearson correlation analysis.
The results showed that there is positive and significant relationship between social media channels and consumption pattern (r=0.772; p<0.05). Social media awareness and referrals (r=.896; p<0.05).Social media communication and Purchase decision making (r=0.772; p<0.05). The study concluded that social media advertising has a significant effect on buying behaviour of Babcock University undergraduate students.
The study concludes that; Companies should perform a comprehensive online market research to study the market for effective social media decision and strategy to later improve manufacturing sales by satisfying their consumers; Marketing and sales managers should get sufficient training on the latest social media used by most consumers which will help them set effective relationship that would increase their custoomer interest and the sales of companies; Marketing and sales managers should employ well thought out social media strategies that would help them improve on sales and their competitiveness; Companies to reduce the perceived risk consumers have on them by being more open and fast in terms of providing information, answering queries, solving problems for consumers.
Chapter One of The Effect of Social Media on Consumers Buying Behaviour
INTRODUCTION
Background to the Study
The advancement in the internet in recent years has increased the options available to businesses today; the social media platforms being a good example (Boulianne, 2009). It is no secret that the general availability of the internet has given individuals the opportunity to use online platforms as mediums of communication, from email to Twitter and Facebook, which has led to business interactions without the need for physical meetings (Picard & Robert, 2011). Furthermore, as part of the growth the internet experienced, the social media platform has become a major communication channel. The online world has become a new vehicle for social communication that has connected people to different online communities. Paquette (2013) reckons that the social media community has grown to more than 12.5% of the entire world population. This has presented another communication channel for various businesses and brands today.
The term social media can be defined as a range of tools and services that facilitate direct user interaction online. Social media are web based services which are otherwise called “social networking Sites” (Miller, 2016). Social media refers to a network of connections and communications among various gatherings or people (Kaplan, 2010). Stelzner (2016) defined social media as a platform that was centered on the concept of a read and write web, where the audience and users are past the passive viewing of web content and move on to actually contributing to the content. In simple terms, social media covers anything that makes use of the Internet to enable conversations and most often take the form of social networking sites, blogs, and Wikis (Celine, 2012). Furthermore, Chaffey (2016) defined a social network site as an online service that permits users to create and modify a profile, either public or semi-private, accumulate a list of connections, as well as view the list of their connections and others utilizing the services. Social Media (SM) refer to network of relationships and interactions among different users (groups or individuals) (Kempe & Chin, 2003). Social media platforms include popular networking sites like the Facebook and Twitter as well as bookmaking sites like Reddit (Ashley, 2015). Online communities and social networking sites are an effective web technology for social interactions and sharing information (Lu & Hsiao, 2010). Social Media such as Facebook, Instagram and Twitter enable users to maintain great connections among themselves as well with others by achieving more than one task and facilitating the way of communicating and sharing different information (comments, thoughts, videos and images) (Kietzmann, 2011).
One of the important contributions of social media is in the way it has changed the method of communication between consumers and marketers (Hennig-Thurau, Gwinner, Walsh & Gremler, 2004). Informational society has always had a significant influence on consumer buying decision and product evaluation, however, with the advent of social media, a new channel to acquire product information has been provided which allows peer communication (Kozinets, 2009). Today’s consumers have access to many different sources of information and experiences, which have been facilitated by other customers’ information and recommendations (Senecal & Nantel 2004). This is an important point as customer involvement through social media is a key factor in marketing (Do-Hyung, Jumin & Ingoo, 2007).
Furthermore, Social networking sites have taken centre-stage in the development of e-commerce in the current environment where consumers make social connections and participate in cyberspace (Miller, 2010). Similarly, social media offers different values to firms, such as enhanced brand popularity, facilitating word-of-mouth communication, increasing sales, sharing information in a business context and generating social support for consumers (Ali, Ballantine & Stephenson, 2011). In addition, the networking of individuals through social media provides shared values, leading to a positive impact on trust (Wu, Chen &Chung, 2010). Today, with the expansion of social media and social networking sites (SNSs), a study of consumer behaviour on these platforms is a research agenda because social media is likely to develop marketing strategies in firms that will affect the customers’ intention to buy their products and services. Therefore, this research will aim to examine how social media marketing strategies will affect consumer buying behavior.
Statement of the Problem
The introduction of the Internet has changed the way organizations promote their products and services as well as the channels of communication between them and their customers (Miller, 2010). Therefore, the promotional focus of some organizations is shifting from the conventional mass media advert style to a more digital approach online. Social media is one of the digital platforms available to businesses to market their products. However, despite the fact that social media marketing is fast advancing across the global marketplace, there have been studies that have questioned its effectiveness as a marketing tool in influencing consumer behavior (DiStaso, McCorkindale, & Wright, 2011).
Furthermore, there have been studies that show that regular mass media channels are beginning to lose viewership. According to Hutton and Fosdick (2017), every year, the percentage of viewership of younger audiences drops by 13%. Furthermore, Boulianne (2015) noted that viewing by 4 to 15-year-olds has tumbled by 22% and viewing among 16 to 34-year-olds is down 15%. This shift is taking place because of the rise of online media content and social media channels such as Facebook, Twitter, YouTube, Instagram e.t.c. Therefore many scholars (Bond, Farriss & Jones, 2009; Kramer, Marlow, Settle, & Fowler, 2012; Picard, 2011) have suggested that using mass media channels is not an effective platform for marketing products and services. However, the dilemma remain are social media channels more effective and if they are do they significantly shape consumption patterns.
Also, the use of social media channels by companies has given them a platform to spread the awareness of new and existing products or services among consumers. According to Furlow (2016), 95% online adults aged 18-34 are most likely follow a brand via social networking. However, while this is impressive, the problem remains how effective social media awareness can trigger referrals and product trials among the consumers.
Furthermore, one of the advantages that social media gives businesses today is the ability to engage personally with a customer or consumer. The use social media messengers today allow the companies and their customers to interact one on one giving the companies rare personal access to their customers’ lifestyle and perception of their product. According to Jahn & Kunz (2016) 33% of social media users prefer to contact brands using social media rather than the telephone. This shows social media is fast becoming an effective customer service tool. However, there is a need to understand if this communication strategy is effective in convincing customers and consumers to repeatedly purchase products and services.
It is against this background that this study needs to be carried out in order to determine the rate at which social media affects the buying behavior of students in Babcock University.
Objectives of the Study
The main objective of this study is to investigate the effects of social media on consumer buying behavior. Other specific objectives are to:
1. To examine the effect of social media channels on the consumption pattern of Babcock University students.
2. To establish the relationship between social media awareness and referrals of Babcock University.
3. To determine the effect of social media communication on Purchase decision making of Babcock University students.
Research questions
The research will seek to answer the following questions:
1. What is the effect of social media channels on consumption pattern of Babcock University students?
2. To what extent has social media awareness influenced referrals of Babcock University students?
3. How has social media communication affected Purchase decision making of Babcock University students?
Research Hypotheses
The following hypotheses are formulated for testing:
H0(1): Social media channels do not have any effect on consumption pattern of Babcock University students.
H0(2): Social media awareness does not significantly influence referrals
H0(3): Social Media communication does not significantly affect Purchase decision making of Babcock University students.