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A Study on Consumers'
Perceptions &
Their Responses in
Facebook Marketing
A Graduate Research Report
Presentation Submitted to
ACE Institute of
Management
Pokhara University
Submitted for the degree of
Master of Business
Administration (MBA)
Submitted by:
Mr. Bidur Raj Joshi
5/11/2013
1
Consumers' Perceptions & Their
Responses in Facebook Marketing
Objectives
 To understand about how consumer perceives
Facebook when used as a marketing platform
and their perception towards advertising on it.
 To examine the effectiveness of Facebook for
marketing.
 If Facebook Marketing increase awareness about the
product or services
 If Facebook marketing help to increase the credibility of
the brand / business that advertises.
 If Facebook Marketing impact on consumer purchasing
intention
5/11/20132 Consumers' Perceptions & Their Responses in Facebook Marketing
Objectives
 To explore the factors that influence Facebook users to
become followers of brands/ business or act as
endorsers.
 To find out what type of marketing is viewed as eye-
catching by consumers and will it influence their
purchasing intention after seeing marketing message on
Facebook.
5/11/20133 Consumers' Perceptions & Their Responses in Facebook Marketing
Significance of the study
 The results of this study will greatly impact integrated
marketing communication plans in all industries.
 This will directly affect
 college curricula,
 workshops,
 public relations,
 advertising and marketing agencies, and
 public relations,
 advertising and marketing departments.
 A greater understanding of these perceptions and
consumer response will lead to improvement of
advertising planning and marketing decisions.
5/11/20134 Consumers' Perceptions & Their Responses in Facebook Marketing
Limitations of the study
 Time Frame
 Sample size limitation
 Geography
 Generalisability
 New Technology
5/11/20135 Consumers' Perceptions & Their Responses in Facebook Marketing
Theoretical Framework
5/11/2013Consumers' Perceptions & Their Responses in Facebook Marketing6
Research Gap
5/11/2013Consumers' Perceptions & Their Responses in Facebook Marketing7
 Facebook Marketing is still very recent
phenomena it is hard to know how to use them
effectively.
 Limited research has been done on consumer
perception and response to such marketing
techniques.
 Therefore, there is a need of study on Facebook
Marketing from consumers’ point of view.
RESEARCH METHODOLOGY
5/11/2013Consumers' Perceptions & Their Responses in Facebook Marketing8
 Description of the Sample

User age distribution on Facebook in Nepal (Nov 2012)
RESEARCH METHODOLOGY
5/11/2013Consumers' Perceptions & Their Responses in Facebook Marketing9
 Analysis Plan
 SPSS and Excel were used
 Test Conducted
 Cross Tabulation
 χ2 test of independence
 Paired Samples T- Test
 One-way analysis of variance (ANOVA)
 Correlations among multiple variables
 Paired Samples Correlations
 Tukey's HSD Post-hoc test
Summary of Major Findings
5/11/2013Consumers' Perceptions & Their Responses in Facebook Marketing10
 want companies to use Facebook for marketing.
 are aware of Facebook Advertisement but do pay
attention to advertising on Facebook
 Facebook users do use Facebook for commercial
activities like searching for information about
company and products or services.
 share links or act as endorsers by share links or giving
comment/feedbacks on Facebook about products or
services if it is interesting.
 consumers are more inclined to spread contents which
are informative, funny, entertaining or interesting.
Summary of Findings
5/11/2013Consumers' Perceptions & Their Responses in Facebook Marketing11
 ““Information gained” is the most important factor
when they join any Facebook group or become Fan of
Facebook page of any Brand or services.
 do not changes the credibility of the Brand or company
that advertises
 Negative WOM in Facebook has a stronger influence
on consumer perception and behavior than positive
communication.
 Even though Facebook marketing significantly
increases the awareness of consumers but does not
have a significant impact on consumer purchasing
decisions in both high involvement product and low
involvement products.
Conclusions
5/11/2013Consumers' Perceptions & Their Responses in Facebook Marketing12
 Facebook provides many ways for marketing but it
has its limitations.
 It doesn’t provide a fast track to purchase decisions.
 With careful planning and some common sense it
can be put into effective use.
 the content is the key- entertaining, informative or
otherwise attractive
 The direct advertisements shouldn’t be the primary
reason for going into Facebook.
Recommendation and scope for future research
5/11/2013Consumers' Perceptions & Their Responses in Facebook Marketing13
 Increase sample size and conduct probability
sampling
 Explore relationship between demographics and
consumer perception and response
 Develop real-time campaigns to measure
effectiveness
 Conduct research data collection informal, proper
settings
Thank you
5/11/2013
14

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A Study on Consumers' Perceptions and Their Responses in Facebook Marketing

  • 1. A Study on Consumers' Perceptions & Their Responses in Facebook Marketing A Graduate Research Report Presentation Submitted to ACE Institute of Management Pokhara University Submitted for the degree of Master of Business Administration (MBA) Submitted by: Mr. Bidur Raj Joshi 5/11/2013 1 Consumers' Perceptions & Their Responses in Facebook Marketing
  • 2. Objectives  To understand about how consumer perceives Facebook when used as a marketing platform and their perception towards advertising on it.  To examine the effectiveness of Facebook for marketing.  If Facebook Marketing increase awareness about the product or services  If Facebook marketing help to increase the credibility of the brand / business that advertises.  If Facebook Marketing impact on consumer purchasing intention 5/11/20132 Consumers' Perceptions & Their Responses in Facebook Marketing
  • 3. Objectives  To explore the factors that influence Facebook users to become followers of brands/ business or act as endorsers.  To find out what type of marketing is viewed as eye- catching by consumers and will it influence their purchasing intention after seeing marketing message on Facebook. 5/11/20133 Consumers' Perceptions & Their Responses in Facebook Marketing
  • 4. Significance of the study  The results of this study will greatly impact integrated marketing communication plans in all industries.  This will directly affect  college curricula,  workshops,  public relations,  advertising and marketing agencies, and  public relations,  advertising and marketing departments.  A greater understanding of these perceptions and consumer response will lead to improvement of advertising planning and marketing decisions. 5/11/20134 Consumers' Perceptions & Their Responses in Facebook Marketing
  • 5. Limitations of the study  Time Frame  Sample size limitation  Geography  Generalisability  New Technology 5/11/20135 Consumers' Perceptions & Their Responses in Facebook Marketing
  • 6. Theoretical Framework 5/11/2013Consumers' Perceptions & Their Responses in Facebook Marketing6
  • 7. Research Gap 5/11/2013Consumers' Perceptions & Their Responses in Facebook Marketing7  Facebook Marketing is still very recent phenomena it is hard to know how to use them effectively.  Limited research has been done on consumer perception and response to such marketing techniques.  Therefore, there is a need of study on Facebook Marketing from consumers’ point of view.
  • 8. RESEARCH METHODOLOGY 5/11/2013Consumers' Perceptions & Their Responses in Facebook Marketing8  Description of the Sample  User age distribution on Facebook in Nepal (Nov 2012)
  • 9. RESEARCH METHODOLOGY 5/11/2013Consumers' Perceptions & Their Responses in Facebook Marketing9  Analysis Plan  SPSS and Excel were used  Test Conducted  Cross Tabulation  χ2 test of independence  Paired Samples T- Test  One-way analysis of variance (ANOVA)  Correlations among multiple variables  Paired Samples Correlations  Tukey's HSD Post-hoc test
  • 10. Summary of Major Findings 5/11/2013Consumers' Perceptions & Their Responses in Facebook Marketing10  want companies to use Facebook for marketing.  are aware of Facebook Advertisement but do pay attention to advertising on Facebook  Facebook users do use Facebook for commercial activities like searching for information about company and products or services.  share links or act as endorsers by share links or giving comment/feedbacks on Facebook about products or services if it is interesting.  consumers are more inclined to spread contents which are informative, funny, entertaining or interesting.
  • 11. Summary of Findings 5/11/2013Consumers' Perceptions & Their Responses in Facebook Marketing11  ““Information gained” is the most important factor when they join any Facebook group or become Fan of Facebook page of any Brand or services.  do not changes the credibility of the Brand or company that advertises  Negative WOM in Facebook has a stronger influence on consumer perception and behavior than positive communication.  Even though Facebook marketing significantly increases the awareness of consumers but does not have a significant impact on consumer purchasing decisions in both high involvement product and low involvement products.
  • 12. Conclusions 5/11/2013Consumers' Perceptions & Their Responses in Facebook Marketing12  Facebook provides many ways for marketing but it has its limitations.  It doesn’t provide a fast track to purchase decisions.  With careful planning and some common sense it can be put into effective use.  the content is the key- entertaining, informative or otherwise attractive  The direct advertisements shouldn’t be the primary reason for going into Facebook.
  • 13. Recommendation and scope for future research 5/11/2013Consumers' Perceptions & Their Responses in Facebook Marketing13  Increase sample size and conduct probability sampling  Explore relationship between demographics and consumer perception and response  Develop real-time campaigns to measure effectiveness  Conduct research data collection informal, proper settings

Editor's Notes

  1. The main objective of the research is to gain an insight into the consumers’ perceptions and response towards Facebook Marketing like;To understand about how consumer perceives Social Media like Facebook when used as a marketing platform and their perception towards advertising on it.To examine the effectiveness Facebook for marketing.If Facebook Marketing increase awareness about the product or servicesIf Facebook marketing help to increase the credibility of the brand / business that advertises.If Facebook Marketing impact on consumer purchasing intention
  2. To explore the factors that influence Facebook users to become followers of brands/ business or act as endorsers. A quantitative study about the consumer habits of a randomly selected group of respondents answer questions based on theory presented in this thesis and conclusions will be drawn from the survey analysis. In addition aspects of how effective a platform it is for a company to attract more customers will be covered. This study will go in detail about what type of marketing is viewed as eye-catching by consumers and will it influence their purchasing intention after seeing marketing message on Facebook.
  3. Significance of the studyUnderstanding social media and how marketing is perceived on social media like Facebook is an important area of research for academics and marketers. The results of this study will greatly impact integrated marketing communication plans and all industries. If this study finds that customers favor business that use social media tools, organizations will need to hire social media specialists. This will directly affect college curricula, workshops, public relations, advertising and marketing agencies, and internal public relations, advertising and marketing departments. Social media will become a new channel to disseminate messages to segmented audiences and public relations practitioners will need to become experts on how to harness the power of social media. This study will be also beneficial to advertisers. The rapid adoption of online social networking, these sites could potentially be a very effective medium to engage the target market. This study seeks to provide evidence that advertising in the online social environment like Facebook is perceived differently to advertising on other type of internet sites and traditional media. A greater understanding of these perceptions and consumer response will lead to improvement of advertising planning decisions. 
  4. Limitations of the studyThere are a number of limitations within this study.Time FrameThe research was prepared within the time period of three months. Sample size limitation Due to time and resource constraint, the total sample sizes of 300 respondents were used. GeographyThe participants in this study are all residents of the Kathmandu area, and as such are not representative of all Facebook uses living in Nepal.GeneralisabilityOwing to the exploratory nature of the study and the small sample size the findings of the study cannot be generalized. New Technology The online Social networking world is incredibly dynamic in nature and today’s experiences and perceptions may be superseded by new technology. Therefore, the findings represent the current technological environment.Despite the limitations listed above, this study will provide an insight into the consumers’ perceptions and response towards Facebook Marketing. These insights will be of benefit to marketers or advertisers who are seeking to engage with consumers in the online environment.
  5. Facebook is a great medium for reaching target customers in a personal way which encourages their feedback, sharing of information, and a positive affiliation with brand or businesses. In the above framework, the research talked about four independent variable of Facebook marketing and they are as follows.Facebook PostFacebook Page / GroupDirect AdvertisementSocial Media WOMFacebook empowers Facebook user to share information (WOM) they “like” with people they know. The average person on Facebook has around 130 friends, this means that anything the average person comments on or “likes” is automatically shared with their 130 friends. If one, two, three or more of their friends comments on or “likes” this information then it is shared with their 130, 260, 410 or “numerous “friends, respectfully. It is easy to see the potential for going viral and increasing brand awareness by using Facebook to Market one’s product or services. Additionally, it should be noted that people who have been referred (WOM) by a friends to a product, service or brand are more likely to make a positive affiliation (awareness and credibility) with the brand, share the information with another friends and ultimately impact on purchasing intention/ decision. A stimulus, such as Facebook advertisement of a particular brand, has an effect on a consumer’s belief system which in turn influences and leads to the consumer developing a specific attitude towards the advertised brand. The attitude which a consumer has with regards to a brand has an impact on a consumer’s intention to purchase the brand offering.Uses and Gratification Theory.According to Katz, Blumler and Gurevitch (1974), the uses and gratifications theory is based on the assumption that (1) the audience is active, (2) the media choice lies with the audience member, (3) all mediums compete with other sources of need/goal fulfillment, (4) mass media goals can be found in the message of the source, and (5) cultural value judgments should be not be taken into consideration as the audience explores their own opinions. The “uses and gratification” theory provides important insight into why Facebook is so widely used. As an audience-based theory, uses and gratification hypothesizes that different consumers use the same media messages for different purposes, depending on their individual needs and goalsBy directly applying these assumptions to mass media in terms of the social networking sites (specifically Facebook), a few customized observations can be made. First, the average Facebook user is active, as he or she has willingly created an account, and is a member of the site. Next, the user chose Facebook as a means to fulfill his or her wants and goals over other sources. Essentially, the Facebook user came to the site for a unique purpose. This can include the need to connect interpersonally as well as the want to promote a business or product (i.e. advertising). In order to understand the perspective of a potential consumer, it is essential to study why Facebook users visit the site in the first place. The uses and gratification theory is a reminder that these needs are customized for each person, and therefore cannot be generalized to an entire population. However, meaningful information can be developed covering smaller populations with common characteristics. For the purpose of this study, the researcher selected the subjects from different age groups who are already Facebook users, having joined the site for their own specific reasons.
  6. Facebook marketing is potentially a very valuable marketing tool but given that it is still very recent phenomena it is hard to know how to use them effectively. Limited research has been done on consumer perception and response to such marketing techniques. A successful marketing strategy is one that is effective in attracting, satisfying and retaining target consumers. Hence, there is a need to draw the connection between any form of marketing technique and its impact on consumer perception and behavior in order to evaluate its market effectiveness. While it is rather undisputable that Facebook Marketing is effective in reaching out to potential consumers, it remains a question of how well consumer receptivity is to this new form of marketing. Therefore, the researcher felt that there is a need of study on Facebook Marketing from consumers’ point of view.
  7. Nowadays people from all demographics have the possibility to get online and get around the internet. When more and more people often are online, it of course offers the online marketers the possibility to reach a broader scale of different segments of the demographic prosperity. The online population here is defined as all the users in Nepal who use internet. In the statistic record of SocialBakers.com (2011), there are around 2.4 million online populations in Nepal. Currently, there are 1,924,220 Facebook users in Nepal which grew by more than 519,560 in the last 6 months. (Nepal Facebook Statistics, 2011)In December 2011, Facebook.com statistic shows that the largest age group was 15-24 with total of 1,143,940 users, followed by the users in the age of 25-34 with total of 532,760 users.
  8. Summary of FindingsThe Summary of the main findings of this research are as below in accordance with the ten hypotheses.H11 revels that Facebook users want companies to use Facebook for marketing. H101 revels that there is significant difference between Facebook users from different age groups on the level of acceptance of companies or organization should use Facebook for Marketing. This finding will be vital for marketers to perform further research on how Facebook tools can give voice to any brand, business or organization to join the conversation with Facebook users. Companies that are not using Facebook are missing out on this opportunity to send their messages through additional channels. But it doesn’t mean that they should use Facebook just because everyone else is using it. Use it because customers are there to readily receive messages.H21 shows that Facebook Users are aware of Facebook Advertisement. And H2a0 revelsthat there is no significant difference between Facebook users from different age groups on the level of aware of Facebook Advertisement. H31 revels that Facebook users do pay attention to advertising on Facebook. H3a1 revelsthat there is significant difference between Facebook users from different age groups on the level of pay attention to advertising on Facebook. Hence, it is statistically proved that Facebook marketing is potentially a very valuable marketing tool. It can bring about benefits to marketers with its advantages such as low cost, high reach, high credibility, accountability, fast speed, ease of usage and ability to reach a large audience.H41 shows that Facebook users do use Facebook for commercial activities like searching for information about company and products or services. They do share links on Facebook about products or services if it is interesting but, only few peoples are interested on clicking Facebook advertisements. They also act as endorsers by share links or giving comment/feedbacks on Facebook about products or services if it is interesting. There are numerous ways to get your message delivered and spread but the content is the key. It may be entertaining, informative or otherwise attractive. Marketers have to find the means to harness the possibilities that lie in Facebook, since the possibilities can be utilized with so cost efficiently.H51 shows the important factors for Facebook users when they join any Facebook group or become Fan of Facebook page of any Brand or services. As the researcher predicted five important factors, “Information gained” is the most important factor in compared to other factors, followed by “Entertainment value”, “honesty of the source “Stay up-to-date” and “interact with source” respectively. Therefore, it is concluded that all of the above factor are important for Facebook users when Facebook Users “join” a group or “like” on Facebook page.Above mention five hypotheses explained how the consumer perceives Facebook as a marketing platform. And further hypotheses were tested to find the effectiveness Facebook for marketing.The rejection of H60 revels that Facebook Marketing do not changes the credibility of the Brand or company that advertises. This finding may seems obvious that only marketing in Facebook doesn’t change the perception and credibility of the Brand or company that advertises since there are other considerable factor involve in Brand perception and building brand equity. When a business has a strong presence on Facebook, it could be a part of the conversations among the users and they have access to the most powerful kind of word-of-mouth marketing. There is nothing like word-of-mouth (WOM) to take the business to the next level. In this study, H71 affirms the point that negative WOM in Facebook has a stronger influence on consumer perception and behavior than positive communication. This means that marketers should be cautious of negative feedback which is taking place regarding their product or services. Marketers need to devise counter strategies to avoid the feedbacks from snowballing. They should be clear with their objectives and choose a proper way to deliver their brand with effective communication to their prospective customer. Therefore, businesses need to be very careful of what they do, and of what they say, and whom they say it to. People are going to talk and gossip and complain about their products and services. Business may not have control over these conversations, but if they have a social media strategy and can get comfortable with some basic tools and tactics, they can use social media to their advantage. Business can have considerable influence, and influence is the foundation of successful relationship with their customers, employees, vendors, family, and friends.H81 revels that Facebook Marketing significantly increases the awareness about the product and services. This means that Facebook is a very attractive channel for marketers to increase the awareness of their brand and product. This is the right tool for them to establish their brand presence among their target consumers. The rejection of H90 revels that there is no significant impact on consumer purchasing decisions in both high involvement product and low involvement products. Even though Facebook marketing significantly increases the awareness of consumers but does not have a significant impact on consumer purchasing decisions. This finding will be vital for marketers to perform further research on how Facebook Marketing can lead to actual purchase behavior in order for it to result in higher revenue for the company.Lastly, H101 shows the motivators behind consumers in wanting to become “influential” and spread messages to friends and family. The results conclude that monetary incentive is not the top motivator. In general, consumers are more inclined to spread contents which are informative, funny, entertaining or interesting. Companies might take this into consideration in their marketing plan and if Facebook Marketing is employed as one of the strategies, they might adapt the advertisement or message and add a humorous touch to it.These hypotheses findings are the primary findings of this research paper. Other insights are generated from quantitative research methods in gaining a fundamental understanding into the topic of consumer perception and response towards Facebook Marketing.
  9. Summary of FindingsThe Summary of the main findings of this research are as below in accordance with the ten hypotheses.H11 revels that Facebook users want companies to use Facebook for marketing. H101 revels that there is significant difference between Facebook users from different age groups on the level of acceptance of companies or organization should use Facebook for Marketing. This finding will be vital for marketers to perform further research on how Facebook tools can give voice to any brand, business or organization to join the conversation with Facebook users. Companies that are not using Facebook are missing out on this opportunity to send their messages through additional channels. But it doesn’t mean that they should use Facebook just because everyone else is using it. Use it because customers are there to readily receive messages.H21 shows that Facebook Users are aware of Facebook Advertisement. And H2a0 revelsthat there is no significant difference between Facebook users from different age groups on the level of aware of Facebook Advertisement. H31 revels that Facebook users do pay attention to advertising on Facebook. H3a1 revelsthat there is significant difference between Facebook users from different age groups on the level of pay attention to advertising on Facebook. Hence, it is statistically proved that Facebook marketing is potentially a very valuable marketing tool. It can bring about benefits to marketers with its advantages such as low cost, high reach, high credibility, accountability, fast speed, ease of usage and ability to reach a large audience.H41 shows that Facebook users do use Facebook for commercial activities like searching for information about company and products or services. They do share links on Facebook about products or services if it is interesting but, only few peoples are interested on clicking Facebook advertisements. They also act as endorsers by share links or giving comment/feedbacks on Facebook about products or services if it is interesting. There are numerous ways to get your message delivered and spread but the content is the key. It may be entertaining, informative or otherwise attractive. Marketers have to find the means to harness the possibilities that lie in Facebook, since the possibilities can be utilized with so cost efficiently.H51 shows the important factors for Facebook users when they join any Facebook group or become Fan of Facebook page of any Brand or services. As the researcher predicted five important factors, “Information gained” is the most important factor in compared to other factors, followed by “Entertainment value”, “honesty of the source “Stay up-to-date” and “interact with source” respectively. Therefore, it is concluded that all of the above factor are important for Facebook users when Facebook Users “join” a group or “like” on Facebook page.Above mention five hypotheses explained how the consumer perceives Facebook as a marketing platform. And further hypotheses were tested to find the effectiveness Facebook for marketing.The rejection of H60 revels that Facebook Marketing do not changes the credibility of the Brand or company that advertises. This finding may seems obvious that only marketing in Facebook doesn’t change the perception and credibility of the Brand or company that advertises since there are other considerable factor involve in Brand perception and building brand equity. When a business has a strong presence on Facebook, it could be a part of the conversations among the users and they have access to the most powerful kind of word-of-mouth marketing. There is nothing like word-of-mouth (WOM) to take the business to the next level. In this study, H71 affirms the point that negative WOM in Facebook has a stronger influence on consumer perception and behavior than positive communication. This means that marketers should be cautious of negative feedback which is taking place regarding their product or services. Marketers need to devise counter strategies to avoid the feedbacks from snowballing. They should be clear with their objectives and choose a proper way to deliver their brand with effective communication to their prospective customer. Therefore, businesses need to be very careful of what they do, and of what they say, and whom they say it to. People are going to talk and gossip and complain about their products and services. Business may not have control over these conversations, but if they have a social media strategy and can get comfortable with some basic tools and tactics, they can use social media to their advantage. Business can have considerable influence, and influence is the foundation of successful relationship with their customers, employees, vendors, family, and friends.H81 revels that Facebook Marketing significantly increases the awareness about the product and services. This means that Facebook is a very attractive channel for marketers to increase the awareness of their brand and product. This is the right tool for them to establish their brand presence among their target consumers. The rejection of H90 revels that there is no significant impact on consumer purchasing decisions in both high involvement product and low involvement products. Even though Facebook marketing significantly increases the awareness of consumers but does not have a significant impact on consumer purchasing decisions. This finding will be vital for marketers to perform further research on how Facebook Marketing can lead to actual purchase behavior in order for it to result in higher revenue for the company.Lastly, H101 shows the motivators behind consumers in wanting to become “influential” and spread messages to friends and family. The results conclude that monetary incentive is not the top motivator. In general, consumers are more inclined to spread contents which are informative, funny, entertaining or interesting. Companies might take this into consideration in their marketing plan and if Facebook Marketing is employed as one of the strategies, they might adapt the advertisement or message and add a humorous touch to it.These hypotheses findings are the primary findings of this research paper. Other insights are generated from quantitative research methods in gaining a fundamental understanding into the topic of consumer perception and response towards Facebook Marketing.
  10. Summary of FindingsThe Summary of the main findings of this research are as below in accordance with the ten hypotheses.H11 revels that Facebook users want companies to use Facebook for marketing. H101 revels that there is significant difference between Facebook users from different age groups on the level of acceptance of companies or organization should use Facebook for Marketing. This finding will be vital for marketers to perform further research on how Facebook tools can give voice to any brand, business or organization to join the conversation with Facebook users. Companies that are not using Facebook are missing out on this opportunity to send their messages through additional channels. But it doesn’t mean that they should use Facebook just because everyone else is using it. Use it because customers are there to readily receive messages.H21 shows that Facebook Users are aware of Facebook Advertisement. And H2a0 revelsthat there is no significant difference between Facebook users from different age groups on the level of aware of Facebook Advertisement. H31 revels that Facebook users do pay attention to advertising on Facebook. H3a1 revelsthat there is significant difference between Facebook users from different age groups on the level of pay attention to advertising on Facebook. Hence, it is statistically proved that Facebook marketing is potentially a very valuable marketing tool. It can bring about benefits to marketers with its advantages such as low cost, high reach, high credibility, accountability, fast speed, ease of usage and ability to reach a large audience.H41 shows that Facebook users do use Facebook for commercial activities like searching for information about company and products or services. They do share links on Facebook about products or services if it is interesting but, only few peoples are interested on clicking Facebook advertisements. They also act as endorsers by share links or giving comment/feedbacks on Facebook about products or services if it is interesting. There are numerous ways to get your message delivered and spread but the content is the key. It may be entertaining, informative or otherwise attractive. Marketers have to find the means to harness the possibilities that lie in Facebook, since the possibilities can be utilized with so cost efficiently.H51 shows the important factors for Facebook users when they join any Facebook group or become Fan of Facebook page of any Brand or services. As the researcher predicted five important factors, “Information gained” is the most important factor in compared to other factors, followed by “Entertainment value”, “honesty of the source “Stay up-to-date” and “interact with source” respectively. Therefore, it is concluded that all of the above factor are important for Facebook users when Facebook Users “join” a group or “like” on Facebook page.Above mention five hypotheses explained how the consumer perceives Facebook as a marketing platform. And further hypotheses were tested to find the effectiveness Facebook for marketing.The rejection of H60 revels that Facebook Marketing do not changes the credibility of the Brand or company that advertises. This finding may seems obvious that only marketing in Facebook doesn’t change the perception and credibility of the Brand or company that advertises since there are other considerable factor involve in Brand perception and building brand equity. When a business has a strong presence on Facebook, it could be a part of the conversations among the users and they have access to the most powerful kind of word-of-mouth marketing. There is nothing like word-of-mouth (WOM) to take the business to the next level. In this study, H71 affirms the point that negative WOM in Facebook has a stronger influence on consumer perception and behavior than positive communication. This means that marketers should be cautious of negative feedback which is taking place regarding their product or services. Marketers need to devise counter strategies to avoid the feedbacks from snowballing. They should be clear with their objectives and choose a proper way to deliver their brand with effective communication to their prospective customer. Therefore, businesses need to be very careful of what they do, and of what they say, and whom they say it to. People are going to talk and gossip and complain about their products and services. Business may not have control over these conversations, but if they have a social media strategy and can get comfortable with some basic tools and tactics, they can use social media to their advantage. Business can have considerable influence, and influence is the foundation of successful relationship with their customers, employees, vendors, family, and friends.H81 revels that Facebook Marketing significantly increases the awareness about the product and services. This means that Facebook is a very attractive channel for marketers to increase the awareness of their brand and product. This is the right tool for them to establish their brand presence among their target consumers. The rejection of H90 revels that there is no significant impact on consumer purchasing decisions in both high involvement product and low involvement products. Even though Facebook marketing significantly increases the awareness of consumers but does not have a significant impact on consumer purchasing decisions. This finding will be vital for marketers to perform further research on how Facebook Marketing can lead to actual purchase behavior in order for it to result in higher revenue for the company.Lastly, H101 shows the motivators behind consumers in wanting to become “influential” and spread messages to friends and family. The results conclude that monetary incentive is not the top motivator. In general, consumers are more inclined to spread contents which are informative, funny, entertaining or interesting. Companies might take this into consideration in their marketing plan and if Facebook Marketing is employed as one of the strategies, they might adapt the advertisement or message and add a humorous touch to it.These hypotheses findings are the primary findings of this research paper. Other insights are generated from quantitative research methods in gaining a fundamental understanding into the topic of consumer perception and response towards Facebook Marketing.
  11. Recommendation and scope for future researchThe Recommendation for future research related to Facebook Marketing and consumer behavior are: Increase sample size and conduct probability samplingIf time and resources permit, it would be good to conduct a full scale study on consumer perception and response. The sample size of the quantitative research should be increased, and probability sampling such as random sampling should be employed instead of convenience sampling to provide a more representative view of the population.Explore relationship between demographics and consumer perception and response As Facebook marketing is a global trend, it will be of interest to explore how differences in the demographics of consumers will lead to differences in the way they view and act towards Facebook marketing. For instance, investigations into how differences in gender, culture, nationality and ethnic groups influence consumer perception can be performed and relationships can be hypothesized and tested.Develop real-time campaigns to measure effectivenessIn using case studies to understand consumer perception and observe their behavior, it is also recommended to make use of new, unseen, or even fictional advertisements for the purpose of studying consumer response. This will help to eliminate the time issue problem the researcher faced and also get rid of any bias or preconceptions of a brand that consumers might possess prior to the study.Conduct research data collection in formal, proper settingsLastly, the researcher also recommended future researchers to make use of more appropriate settings in their data collection. The qualitative research is crucial for the investigation of the topic and it is necessary to have interaction with the respondents to better understand the way they act and feel. If possible, focus groups should be conducted in order to gain rich, in-depth consumer insights. Researchers might want to consider using formal focus group rooms or set rules such as switching off mobile phones to avoid unnecessary disruptions.To conclude this study, the researcher believed that Facebook Marketing possesses immense potential as a marketing line of attack and in future, more companies will attempt to harness its power and reap the benefits of this internet tactic. It will be essential to perform more profound and thorough research into consumer behavior towards Facebook Marketing to develop even more successful marketing and communication strategies in time to come.