Effect of Social Media on Consumer Purchasing Behavior Elhadi Baby American Military University DEFM200 Assignment 2 Professor Oscar Solano 26 December 2021 Social Media Platforms Influence Consumer Purchasing Behavior Introduction Social media has become an excellent avenue for retailers to extend their marketing campaigns and influence consumer buying behaviors for a broad range of products in today's technology-driven world. Social media provides an effective and reliable communication channel where retailers and buyers do not have to meet physically to influence customer buying decisions (Voramontri & Klieb, 2019). Social media platforms, including Facebook, Instagram, Twitter, My Space, and Linkedln, have enabled consumers to connect with others and sellers through information sharing, thoughts, and opinions about particular agricultural products. Consumers are on social media networks than ever before, looking for products recommendations and reviews to make buying decisions. Consumers require awareness about different products, which is readily provided through constant dialogue between the seller and the buyer. The informative and attractive content about particular products can glue consumers to the product and influence purchasing decisions. Topic Definition Social media involves an internet-grounded technology that allows disseminating information content via virtual communities and networks. It is computer-grounded and offers users quick communication electronically, including videos, personal information, photos, and documents. Social media platform refers to distributing information or content through the internet to a given group of followers. Social media platforms include Facebook, Instagram, Twitter, My Space, and Linkedln. Consumer purchasing behavior can be defined as actions taken by a consumer before purchasing a service or product. Social media platforms affect the extent to which consumers feel a connection with a particular product or service, therefore affecting their behavior to buy. Topic Explanation Social media has provided various online activities for agricultural produce consumers, including chatting, blogging, messaging, and even gaming. Such activities offer practical approaches for the potential client to gather advice and details about particular farm products (Alnsour et al., 2018). Social media platforms have changed the manner of sharing interests and information and communication ways. Due to the rapid growth of social media platforms, product marketers have found a new channel for contacting their clients. Although marketers are spending heavily on social media platforms, it is hard to measure the real return on investment. There is inadequate research elaborating the exact role of social media on consumers' different phases of purchasing decision-making procedures. The topic aims at studying how social media influences consumer buying behavior. Defending P ...

1. Effect of Social Media on Consumer Purchasing Behavior
Elhadi Baby
American Military University
DEFM200 Assignment 2
Professor Oscar Solano
26 December 2021
Social Media Platforms Influence Consumer Purchasing
Behavior
Introduction
Social media has become an excellent avenue for retailers
to extend their marketing campaigns and influence consumer
buying behaviors for a broad range of products in today's
technology-driven world. Social media provides an effective
and reliable communication channel where retailers and buyers
do not have to meet physically to influence customer buying
decisions (Voramontri & Klieb, 2019). Social media platforms,
including Facebook, Instagram, Twitter, My Space, and
Linkedln, have enabled consumers to connect with others and
sellers through information sharing, thoughts, and opinions
about particular agricultural products. Consumers are on

2. social media networks than ever before, looking for products
recommendations and reviews to make buying decisions.
Consumers require awareness about different products, which is
readily provided through constant dialogue between the seller
and the buyer. The informative and attractive content about
particular products can glue consumers to the product and
influence purchasing decisions.
Topic Definition
Social media involves an internet-grounded technology
that allows disseminating information content via virtual
communities and networks. It is computer-grounded and offers
users quick communication electronically, including videos,
personal information, photos, and documents. Social media
platform refers to distributing information or content through
the internet to a given group of followers. Social media
platforms include Facebook, Instagram, Twitter, My Space, and
Linkedln. Consumer purchasing behavior can be defined as
actions taken by a consumer before purchasing a service or
product. Social media platforms affect the extent to which
consumers feel a connection with a particular product or
service, therefore affecting their behavior to buy.
Topic Explanation
Social media has provided various online activities for
agricultural produce consumers, including chatting, blogging,
messaging, and even gaming. Such activities offer practical
approaches for the potential client to gather advice and details
about particular farm products (Alnsour et al., 2018). Social
media platforms have changed the manner of sharing interests
and information and communication ways. Due to the rapid
growth of social media platforms, product marketers have found
a new channel for contacting their clients. Although marketers
are spending heavily on social media platforms, it is hard to
measure the real return on investment. There is inadequate
research elaborating the exact role of social media on

3. consumers' different phases of purchasing decision-making
procedures. The topic aims at studying how social media
influences consumer buying behavior.
Defending Position of the Topic
Having a prominent presence on social media as a seller
has become essential in today's world of technological
advancement. Social media hold significant power to influence
possible consumer behavior from the beginning to the buying
stage and even beyond. The informative and attractive content
about particular products glues consumers to the development
and influences purchasing decisions. According to Pütter
(2017), sharing pictures, testimonials, case studies, and
comments of happy clients about a particular commodity boosts
the products' trust, therefore influencing more people to buy the
product. Voramontri & Klieb (2019) reveal that
recommendations and opinions about a particular product can
significantly influence buying habits, even when the idea comes
from a stranger on social media.
Conclusion
Social media is utilized for sharing and passing
products' information among the users through comments and
recommendations, which create valuable information sources
for making a purchasing decision among the online users. The
platforms provide an avenue to receive other people's views on
particular products, eventually influencing consumers' attitudes
towards a specific product. People are likely to purchase a
specific product after getting a recommendation from people
they trust. Positive influence encourages the customer to buy
the product in question. Social media affects consumers
purchasing behavior differently; therefore, the research problem
focuses on the insufficient information regarding the impact of
social media on consumer purchasing habits.

4. References
Alnsour, M., Ghannam, M., Al-Natour, R., & Alzeidat, Y.
(2018). Social media effect on purchase intention: Jordanian
airline industry. Journal of Internet Banking and Commerce,
23(2), 1-16.
Pütter, M. (2017). The impact of social media on consumer
buying intention. Marketing, 3(1), 7-13.
Voramontri, D., & Klieb, L. (2019). Impact of social media on
consumer behaviour. International Journal of Information and
Decision Sciences, 11(3), 209-233.
Risk analysis and Management Plan Between GM and FCA
Page | 2
Risk Analysis and Risk Management Plan
General Motors Company (GM) and Fiat Chrysler Automobiles
(FCA)

5. Table of Contents
Letter to Board of
Directors……………………………………………….……………
………1
Introduction…………………………………………………………
……………………………2
Identification and Assessment of Risk Items 3-4
Industry Risks
Company Risks
Analysis and prioritization of
risk………………………………………………………………5
Recommendation of risk mitigation and management
measures………………………….…6
Conclusion 7
References 8
DATE: January 24, 2022
TO: Senior executive of General Motors Company
THROUGH: Chief Financial Officer
FROM:
Risk Analysis and Risk Management Plan
Dear CFO,

7. Introduction
Mergers and acquisitions can bring some unique due diligence
considerations for the acquiring company however, it is
necessary to work on how to minimize the risk of
implementation, people, cultures, different legacy systems,
business disruption, etc. are taken as the complex matters which
need to be considered. During acquisition, any business takes
the assets, contracts, and liabilities of the acquired company.
In contents of the acquisition of Fiat Chrysler Automotive
(FCA), it’s considerable for General Motors (GM) to reckon
with the risks they are acquiring. Fiat Chrysler Automotive is an
international automotive company, so General Motors needs to
be prepared to take on all risks associated with foreign
complexity that include risks such as international tax law risk,
regulatory risk, labor law risk. Also, FCA has 189 thousand
employees, which means the risk factor is associated with
culture. Differences in culture between acquirer and target
create complexity that is often not considered because it is not
seen as a financial risk. Most important is a financial obligation
that needs to be considered. Although Fiat Chrysler Automotive
is much smaller than General Motors, which has an annual
revenue of $123 billion, FCA the world’s seventh-largest
carmaker with a market capitalization of $30.9 billion, reported
revenue of € 108 billion in 2019, net debt had fallen to 1.3
billion euros ($1.6 billion) by the end of March. ( Flak A., 2018
)

8. Identification and Assessment of Risk Items
Industry Risks
Risk Factors
Description
Technology advancement
The automotive industry is facing an unprecedented
transformation with changes in technologies. Trends in
connectivity, mobility-as-a-service, autonomous driving, and e-
mobility are rapidly changing vehicle technologies from the
body to the drivetrain.
Market risk
Automotive OEMs are challenged by peak demand
andincreasing competition. Auto sales are flattening in many
mature markets such as Japan and Europe, while North America
faces the prospect of slowing demand conditions in the market.
From 2014 to 2019, the global light-vehicle sales are estimated
to increase at a compound annual growth rate of only 3.1%.
Cultural integration risk
The integration is a large risk of M&A process. It involves
many areas including involving in internal management audits,

9. the integration of sales forces, the threat of employee
enhancement, loss of value, etc. The most important issue is the
cultural of the target company.
Company Risks
Risk Factors
Description
Uncertainty in revenue
The uncertainty in revenue is one of the leading company risks
facing the acquisition plan between General Motors and Fiat
Chrysler Automobiles. The automotive market has experienced
a drastic shrinking in the recent past. The sector has recorded a
slowdown in the production and sales of motor vehicles, leading
to reduced revenues. For instance, FCA sold 4.42 million
vehicles in 2020, registering an 8.8 percent drop from 2018
(Felipe, 2020). Although the Covid-19 pandemic significantly
contributed to reduced sales, the market share had started
shrinking in 2019, before the disruption. The uncertainty is also
brought about by the increasing competition from players in
emerging markets such as China. Moreover, lifestyle changes
pose a considerable risk to the company. Today, most customers
have become more environmentally conscious, thus preferring
electric cars that use clean energy. Court cases challenging the
acquisition might also delay or prevent the company from
generating significant revenues.
Accounting practices
The risk of accounting practices is also a critical challenge
during acquisition. Accounting practices risk involves the
possibility of the company reporting misleading or incorrect
financial information. The problem can arise due to failure of
controls or fraud. Most often, accounting fraud misleads
investors and partners. The occurrence of this risk can result in

10. losses and damage to the reputation and integrity of the
company. FCA has been indicted in accounting malpractices in
the past. For example, in 2019, the Securities and Exchange
Commission (SEC, 2019) charged and ordered FCA to pay $40
million for misleading investors. The report indicates that the
company falsely reported the number of vehicles sold in the
United States between 2012 and 2016. As such, accounting
practices is a critical risk to be considered during the
acquisition.
Losing Talented Workforce
The company risks losing a talented workforce after the
acquisition. In most cases, companies trim the workforce after
acquisition to manage costs. Sometimes this approach dampens
morale among employees, leading talented workers to leave the
company. Moreover, the differences in organizational culture
between the two companies can orchestrate high employee
turnover. This risk is likely to occur since GM and FCA have
different cultures.
Liability risk
The company faces various potential liabilities due to
acquisition. For instance, the company will bear all the losses
made by the target company

11. Analysis and Prioritization of Risk
Risk prioritization is a crucial process in risk management. It
involves determining the type of risks to act upon first before
addressing others. Notably, risk prioritization follows a risk
impact assessment, whereby risk events that are more likely to
occur and have higher impacts are prioritized. In this case, the
two companies should focus on high-priority risks during the
acquisition. For instance, the company should develop employee
retention strategies to avoid losing talented employees. Ideally,
this risk event has a high likelihood of occurrence and severe on
the company. Consequently, the company should prioritize
uncertainty in revenue since it has a significant impact on the
company’s growth.
Recommendation of Risk Mitigation and Management Measures
Risk Factors
Mitigation
Technology advancement

12. · Invest in R&D in e-drive and other technologies such as
Advanced Driver Assist Systems (ADAS).
Market risk
· Become a comprehensive solutions provider with
complementing capabilities in one segment, such as interior,
electronics, or connected cars.
· Keep the customers loyal to the company’s brand and attract
new customers with new designs and technologies.
· Develop a new product line such as a connected car.
Cultural and integration risk
· Allow members of the due diligence team to become part of
the integration team. An experienced and skillful integration
team will help with integration planning during diligence to
gain a better understanding of the target company.
· The integration planning should begin early, GM should
collect information on the target’s culture as soon as possible.
Be open and consistent in communication.
· Quick implementation of restructuring initiatives.
Recommendation of Risk Mitigation and Management Measures
Company Risk Factors
Mitigation
Uncertainty in revenue
Accounting practices
Losing Talented Workforce
Liability risk

13. Conclusion

14. References
Felipe. (2020). 60% of FCA sales are SUVs/pickups. Fiat Group
World, https://fiatgroupworld.com/2020/03/24/60-of-fca-sales-
are-suvs-pickups/
Flak A., 2018 “Fiat Chrysler cuts debt by more than expected “
https://www.reuters.com/article/us-fiatchrysler-results-
idUSKBN1HX1OG
Securities and Exchange Commission. (2019). Automaker to Pay
$40 Million for Misleading Investors.
https://www.sec.gov/news/press-release/2019-196