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IMPACT OF
SOCIAL MEDIA
CONSUMER
BUYING
BEHAVIOUR
ON
Presented By:
SHINJON SENGUPTA
19PGDM-BHU061
IMI Bhubaneswar
2. 1
ABOUT THE INDUSTRY
• The social media marketing is gaining popularity with each
passing day due to the fact of increasing participation from the
users across various platforms.
• With over 2.4 billion users, Facebook is the most popular
platform among the other social media platforms today followed
by YouTube and WhatsApp standing at 2 billion users each.
• 75% of the people who are actively using internet services use
social networking sites such as Facebook, Twitter, YouTube,
Pinterest, Instagram etc. to interact with friends and colleagues.
• The Indian Government has helped in promoting digital media as
there has been an increase in the online shoppers from 100
million in 2017 to 120 million in 2018 and is expected to reach
220 million by 2023.
• The number of app downloads is very strong in India with the
amount standing at more than 19 billion which was downloaded
by the Indian population in 2019. The average time that an
individual person spends each week is approximately 17 hours
that is more than China and U.S.
3. 2
• The worldwide social media penetration
currently stands at 49 percent.
• After the 4G introduction the data traffic has
hugely increased in India by approximately 47%.
• In 2019, India had 560 million active users and
in 2020 the number stands at just below 700
million. Out of these 250 million were active
social media users.
• The growing digitization efforts combined with
low data prices has enabled people to actively
use internet.
GROWTH &
PENETRATION
5. 4
Why Social Media
www.website.com
This platform is the most popular with over 2
billion monthly users. Facebook Groups helps to
build a community and trust with the consumers.
The more the content is interesting, engaging the
consumers get influenced to purchase the brand.
This platform is preferred by influencers, bloggers
and consumers get influenced to purchase the
brand based on the reviews. It is most popular
among teens and young adults.
This platform has an active user base of around
300 million. It is popular among B2B
organizations. Hashtags and engaging videos
helps to connect with the target audience with a
tweet on this platform.
This platform is currently the 2nd most popular
social media platform after Facebook. YouTube
influencers and engaging videos works best on
this platform.
6. 5
OBJECTIVES OF THE STUDY
To establish the impact of social media on consumer’s decision-making
process.
The study will aim to understand the reasons or factors that tempts
consumers to purchase online and analyze the stated factors.
To determine how social media influences the pre-purchase stage of a
consumer.
7. 7
• Michael Putter (2017) mentioned in his paper “The Impact of Social Media on
Consumer Buying Intention” about how social media can be effectively used by
companies to interact with target groups.
• Manju Ahuja (2003) found out the factors that influence the shopping behaviour and
the browsing behaviour during online shopping and the study was conducted using
B2C sites.
• Constantinides (2004) found out the important elements of consumers visiting
websites. This paper also highlights why consumers use social media to purchase
products.
• Garima Gupta (2013) analysed the influence of social media on buying behaviour of
consumers.
LITERATURE
REVIEW
8. 8
1 Type of Research Descriptive Research
2 Sources of Data Primary & Secondary
3 Research Instrument Google Forms, SPSS, MS Excel
4 Location of Study Questionnaire to be floated
through social media platforms
to random people.
5 Sample Plan Simple Random Sampling
RESEARCH DESIGN
9. 10
RESEARCH
METHODOLOGY
Primary Data – A Questionnaire was floated with the help of Google forms to random people to
collect data.
Secondary Data – Collected through the internet for taking reference from various websites and
articles.
• The sample size of the study is limited to 164 individual responses.
• The sampling method used in this study is Simple Random Sampling.
• The sampling frame includes all age-groups, occupation & Gender.
• Research Technique used in the study is Factor Analysis, Multiple Regression Analysis & Cross-tabs.
11. 12
0
10
20
30
40
50
60
70
80
Student Business Service Professional
Series1 77 20 38 29
Student, 77
Business, 20
Service, 38
Professional, 29
EMPLOYMENT STATUS
64
11
20
34
35
NOT APPLICABLE
LESS THAN 10000
11000-30000
31000-50000
ABOVE 50000
INCOME-LEVEL
12. 13
15%
41%
44%
HIGHEST EDUCATION
X / XII
Graduation
Post-
graduation/Masters
Facebook
20%
Instagram
37%
YouTube
26%
WhatsApp
10%
Snapchat
7%
PREFERENCE FOR SOCIAL MEDIA PLATFORM
Facebook
Instagram
YouTube
WhatsApp
Snapchat
13. 14
FACTOR
ANALYSIS
Kaiser-Meyer-Olkin (KMO)
It is a measure of sampling adequacy that are to be used for Factor Analysis.
The KMO value is .634 which is relevant and significant and states that the correlations between pairs of variables
can be explained by other variables and that factor analysis will be appropriate. A value of 0.5 is suggested
minimum.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .634
Bartlett's Test of Sphericity Approx. Chi-Square 334.629
df 78
Sig. .000
14. 15
FACTOR
ANALYSIS • There were 14 variables of which 1 was the
dependent variable. So, out of the 13 factors or
variables not all 13 are retained only the first 5
factors or variables are retained.
• Eigenvalues are the variance of factors. The total
column contains the eigenvalues. The first factor
accounts for the most variance thus having the
highest eigenvalue and the next factor accounts for
the left-over variance and so on.
• The % of variance column gives the percentage of
total variance accounted for by each component.
• The cumulative % column gives the cumulative
percentage of variance accounted for by the current
and preceding factors. Here the cumulative % for the
fifth component is 60.617 that means that first 5
factors account for 60.617% of the total variance.
16. 17
MULTIPLE REGRESSION
ANALYSIS Dependent Variable – Customer Buying Behaviour
Independent Variable – Factors
• Referral
• Trust
• Awareness
• Communication
• Convenience
The model summary shows that R value is 0.912 which is correlation of five independent variables with
dependent variable.
R square value is 0.832 which means that 83.2 percent of the variations in the dependent variable
(Customer buying behaviour) is been explained by the independent variables (Referral, Trust,
Awareness, Communication, Convenience) taken into consideration in the model.
17. 18
HYPOTHESIS
TESTING
H1 – Referral significantly impacts customer buying behaviour.
H2 – Trust significantly impacts customer buying behaviour.
H3 – Awareness significantly impacts customer buying behaviour.
H4 – Communication significantly impacts customer buying behaviour.
H5 – Convenience significantly impacts customer buying behaviour.
Testing H1
There is a significant and positive relationship between
Referral and customer’s buying behavior while purchasing
online with Beta = .439 and p-value is 0.000 which is less than
0.05. Referral impacts more than 43 percent customer buying
behavior while purchasing online. Thus, we accept H1.
Testing H2
Trust impacts more than 31 percent customer buying behavior
while purchasing online. Thus, we accept H2.
Testing H3
There is a significant and positive relationship between
Awareness and customer’s buying behavior while purchasing
online with Beta = .233 and p-value is 0.000 which is less than
0.05. Thus, we accept H3.
Testing H4
There is no significant relationship between customer buying
behaviour and Communication in online shopping with Beta=
.054 and p value is .074 which is greater than 0.05. Thus, we
reject H4.
Testing H5
There is a significant and positive relationship between
Convenience and customer’s buying behavior while purchasing
online with Beta = .054 and p-value is 0.047 which is less than
0.05. Thus, we accept H5.
18. 19
Based on SPSS results, the Regression Model of the study is Customer
buying behaviour = -.356 + 0.439(Referral) + 0.312 (Trust) + .233
(Awareness) + 0.054 (Convenience)
It can be interpreted that -
The Customer buying behaviour while purchasing online is mainly been
impacted by four variables namely Referral, Trust, Awareness and
Convenience.
19. 20
CROSSTAB
ANALYSIS
• The above cross tab shows relationship between Age and the preferred social media
platform. We can interpret that the platform Instagram impacts most in the age-group
18-23 and 24-28. YouTube impacts the most in the age-group 24-28. The people in the
age-group 29-35 feel that Facebook and YouTube influence their purchase decision.
• From the chi-square test we can see that the p-value is 0.04 which is less than 0.05
which is the designated alpha value, so the result is significant, and we reject the null
hypothesis that asserts that the two variables are independent on each other.
20. 21
• This cross tab shows us the relationship between Employment status or occupation and
the Preferred social media platform. We can see that people in business category are
impacted evenly by Instagram and YouTube, professional people are more inclined
towards Facebook and Instagram when they purchase online, and the students are
heavily impacted by Instagram and to some extent YouTube as well.
• Here the p-value is 0.021 which is less than 0.05 which is the standard p-value so we
reject the null hypothesis which states that the two variables are independent of each
other, but we can see that there is association between them.
21. 22
RESULTS &
FINDINGS
The study examines and lists out the factors of the social media that influence an
individual consumer before purchasing online.
After running the Factor Analysis, the five factors that came out were Referral,
Trust, Awareness, Communication and Convenience which the customers look at
before purchasing online.
The multiple regression analysis is conducted in this study to find out the most
impacting factor. The five influential factors were taken as independent variables
in the study.
The findings of the study also indicate that Referral, Trust and Awareness are the
most significant factors for customer buying behaviour in the online shopping.
With the help of crosstabs, I could figure out the preferred social media platforms
across different age-groups and people across different backgrounds.
22. 22
CONCLUSION/RECOMMENDAT
IONS
The 4 factors that has significant impact on the customer buying behaviour
suggests that social media has a major impact on consumer buying decisions.
The brands should focus on these 4 factors when they are looking to market their
products on social media as it impacts the consumers in the pre-purchase stage.
The age-group 18-23 and 24-28 are mostly impacted by social media platforms
Instagram and YouTube when they purchase online so the brands should focus on
the social media handles and work on the 4 factors mentioned in the study if their
target segment falls under this age-group.
