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THE INFLUENCE OF SOCIAL NETWORK ON ONLINE PURCHASING
BEHAVIOUR OF CONSUMERS
Submitting in partial fulfilment of the requirements
for the Award of the Degree of
BACHELOR OF BUSINESS ADMINISTRATION
By
RADHIKA PATEL
18MG1A3189
Under the Guidance of
Dr. B. SUBHA
KRISTU JAYANTI COLLEGE (AUTONOMOUS)
K. NARAYANPURA, KOTHANUR POST,
BANGALORE - 560077
2020-2021
2
KRISTU JAYANTI COLLEGE (AUTONOMOUS)
CERTIFICATE FROM GUIDE
This is to certify that this project /dissertation work titled “The Influence of Social Network on
Online Purchasing Behaviour of Consumers” is based on an original project study conducted by
Radhika Patel (18MG1A3189) of 6th semester BBA under my guidance.
This project work has not formed the basis for the award of any degree/ diploma by Bangalore
University or any other university.
Place: Bangalore
Date: Name of the Guide
3
KRISTU JAYANTI COLLEGE (AUTONOMOUS)
CERTIFICATE FROM COLLEGE
This is to certify that this project/dissertation work titled “The Influence of Social Network on
Online Purchasing Behavior of Consumers” is based on an original project study conducted by
Radhika Patel (18MG1A3189) of 6th semester BBA under the guidance of
..............................................
This project/dissertation work is based on original and has not formed the basis for the award of
any degree/diploma by Bangalore University or any other University.
Head of the Department Principal
Place: Bangalore Place: Bangalore
Date: Date:
4
DECLARATION
I RADHIKA PATEL, hereby declare that this project work titled titled “The Influence of Social
Network on Online Purchasing Behavior of Consumers” is based on the original project/
dissertation conducted by me under the guidance of......................................
This has not been submitted earlier for the award of any other degree/diploma from Bangalore
University or any other University.
Place: Bangalore
Date:
Reg. No: (Student’s Name)
5
ACKNOWLEDGEMENT
I am indebted to Kristu Jayanti College, Autonomous, Bangalore and Department of Management,
which as accepted me for BBA program and provided me with an excellent opportunity to carry
out the dissertation work.
Firstly, to begin with, I thank Principal Fr. Augustine George, the Financial administrator Fr.
Lijo P Thomas, the Director, Library, and Information Technology Fr. Som Zacharia and the
Director Jayantian Extension services and Jayantian Alumni Association Fr. Emmanuel P J for
providing the necessary facilities.
I extend my deep sense of gratitude to my guide Dr. B. Shubha for guiding me to do this work
for my academic growth and development. She has been very kind and warm as a person. My
refreshing and encounters and experience with her is noteworthy, her wisdom, knowledge and
commitment to the highest standards inspired, motivated, and encouraged me to accomplish this
study.
My parents for giving me education and supporting me in all my endeavours.
Finally, I am sincerely obliged to all those who have helped me directly and indirectly in the
completion of this study. Above all I am thankful to Almighty whose grace and blessings made
everything possible.
Last but not the least my friends for their kind support and encouragement which helped me to
successfully complete this dissertation
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TABLE OF CONTENTS
CHAPTER
NUMBER
PARTICULARS PAGE NUMBER
1 Introduction 9-15
2 Subject Definitions 16-21
3 Industry Profile 22-26
4 Research Design 31-32
5 Data Analysis and Interpretation 32-53
6 Findings and Recommendations 54-56
7 Conclusion 57
8 Appendices 58-61
9 Bibliography 62
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LIST OF TABLES
Table No. Title of the Table Page No.
6.1 Age of the respondents 32
6.2 Gender of respondents 34
6.3 Usage of social media by respondents 34-35
6.4 Purpose of usage of social media 36
6.5 Types of social media used 36-37
6.6 Attention paid to advertisement on social
media
37-38
6.7 Trust on social media 38-39
6.8 Influence of social media in buying decision 39-40
6.9 Preferred source of information for buying
decision
40-41
6.10 Preferred sources for buying decision 41-42
6.11 Products purchased currently influenced by
advertisement on social media
42-43
6.12 Time spent using social media per week 43-44
6.13 Social media sites to seek out products/services
information actively
44-45
6.14 Outcomes of social media 45-46
6.15 Prejudgment towards products 47-48
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6.16 Factors causing prejudgment 48-49
6.17 Information search 49-50
6.18 Social media triggering to purchase a product
or services
50-51
6.19 Attractiveness of advertisements on mass
media
51-52
6.20 Comparison of media for information search 52-53
6.21 Pre search of information on social media
before purchase
53-54
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LIST OF GRAPHS
Graph No. Title of the Graph Page No.
Table No. Title of the Table Page No.
6.1 Age of the respondents 32
6.2 Gender of respondents 34
6.3 Usage of social media by respondents 34-35
6.4 Purpose of usage of social media 36
6.5 Types of social media used 36-37
6.6 Attention paid to advertisement on
social media
37-38
6.7 Trust on social media 38-39
6.8 Influence of social media in buying
decision
39-40
6.9 Preferred source of information for
buying decision
40-41
6.10 Preferred sources for buying decision 41-42
6.11 Products purchased currently
influenced by advertisement on social
media
42-43
6.12 Time spent using social media per week 43-44
6.13 Social media sites to seek out
products/services information actively
44-45
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6.14 Outcomes of social media 45-46
6.15 Prejudgment towards products 47-48
6.16 Factors causing prejudgment 48-49
6.17 Information search 49-50
6.18 Social media triggering to purchase a
product or services
50-51
6.19 Attractiveness of advertisements on
mass media
51-52
6.20 Comparison of media for information
search
52-53
6.21 Pre search of information on social
media before purchase
53-54
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CHAPTER 1.
1.1 INTRODUCTION
This dissertation aims to explore the impact of social network on online purchasing behaviour of
consumers. This chapter commences by presenting a brief introduction about the social media and
its implications, as a prerequisite to address the question whether Websites & its related
applications like social media that can be considered as medium to influence online purchasing
buying behaviour.
The consumer buying behaviour is basically the study of how an individual or the organisation
selects and uses products and services. This mainly focuses on psychology, motivations, and
behaviours, such as how people choose between brands, how they research and shop, and how
marketing campaigns can be improved so that brands can effectively influence them.
With all the facts and figures, we now understand that the consumer buying behaviour works can
establish the best practices before investing in social media advertising and all the other marketing
tactics.
There are basically 3 factors that influence the consumer buying behaviour: personal,
psychological, and social factors.
a) Personal factors: It usually deals with the interests and the opinions, which are all affected
by their demographics.
b) psychological factors: These factors are usually based on the perceptions and attitudes,
including the ability to comprehend the information and how people see their needs.
c) Social Factors: These are basically made of one’s peer groups, socioeconomic classes, and
even social medial influence.
The consumer purchase decision is influenced by social media through communication through
groups. It is now the web platform that is the new method of developing the business. Social media
tries Communication through the social media is a new platform to exchange to modify all the
communication between the buyers and the sellers.
This study is made of the decision process of consumers for complex purchases, with a special
emphasis on how this process is influenced by possible use of social media. Complex buying
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behavior in this context refers to expensive infrequent purchases with high consumer involvement,
significant brand differences, and high risk.
Social media is a relatively recent phenomenon. Over the last decade, the World Wide Web has
seen a proliferation of user-driven web technologies such as blogs, social networks and media
sharing platforms. Collectively called social media, these technologies have enabled the growth of
user-generated content, a global community, and the publishing of consumer opinions. This
movement now dominates the way we use the web and has given rise to popular platforms like
Facebook, YouTube, Instagram and Twitter, where people connect, produce and share content.
The social media revolution has led to new ways of seeking and obtaining information on the
multitude of products and services in the market.
It has enabled consumers to connect and discuss brands with each other quickly and easily.
Consumer opinions on products and services are now increasingly dominated by strangers in
digital spaces, which in turn influence opinions in the offline space. Social media have empowered
consumers, as marketers have no power over the content, timing or frequency of online
conversations among consumers. The use of social media by consumers is anxiously followed by
marketers, but not much is known about how it influences the consumers’ decision-making. Many
studies focus on consumer behavior in the online shopping environment, but without consideration
of the effects of the internet on the different phases of consumers’ decision process. This research
explores how the presence and abundance of these new information sources is influencing the
decision process of consumers for complex purchases. A quantitative survey was used to
retroactively attempt to explore aspects of the phases in the decision process. A total of 112
participants completed the survey, and their responses were used to analyses the decision-making
process of their complex purchase instances.
Social media as electronic word-of-mouth
The concept of word-of-mouth (WOM), introduced in the 1950s, has been revitalized by the
internet. According to Arndt, WOM is a “person-to-person communication between a receiver and
a communicator whom the receiver perceives as non-commercial regarding a brand, product, or
service.” WOM is a primary source of information for consumer buying decisions, shaping
attitudes, perceptions and expectations of brands, products and services, and impacting all phases
of consumer decision-making: from product awareness to selection and post-purchase evaluation.
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WOM has gained new prominence today as a result of greater inter-connectedness of people on
social media. Online or electronic word-of-mouth (eWOM) is a form of WOM where internet users
provide reviews and ratings to all kinds of products, brands and services on review sites. It is
defined as “any positive or negative statements made by potential, actual, or former customers
about a product or company, which is made available to a multitude of people and institutions via
the Internet”. Electronic WOM can be disseminated in many ways, on social media platforms or
the comments sections on e-commerce sites; and the information disseminated is rarely available
through company-led marketing communications. Content generated by internet users, who are
also consumers, is generally perceived to be independent of commercial influences. This trust
makes consumers go to forums, blogs and other unbiased social media sources to gather
information for purchase decisions.
The actual purchase is just one step. In fact, there are six stages to the consumer buying process,
and as a marketer, you can market to them effectively.
1.1 Problem Recognition
Put simply, before a purchase can ever take place, the customer must have a reason to believe that
what they want, where they want to be or how they perceive themselves or a situation is different
from where they actually are. The desire is different from the reality – this presents a problem for
the customer.
However, for the marketer, this creates an opportunity. By taking the time to “create a problem”
for the customer, whether they recognize that it exists already or not, you’re starting the buying
process. To do this, start with content marketing. Share facts and testimonials of what your product
or service can provide. Ask questions to pull the potential customer into the buying process. Doing
this helps a potential customer realize that they have a need that should be solved.
1.2 Information Search
Once a problem is recognized, the customer search process begins. They know there is an issue
and they’re looking for a solution. If it’s a new makeup foundation, they look for foundation; if
it’s a new refrigerator with all the newest technology thrown in, they start looking at refrigerators
– it’s fairly straight forward.
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As a marketer, the best way to market to this need is to establish your brand or the brand of your
clients as an industry leader or expert in a specific field. Methods to consider include becoming
a Google Trusted Store or by advertising partnerships and sponsors prominently on all web
materials and collaterals.
Becoming a Google Trusted Store, like CJ Pony Parts – a leading dealer of Ford Mustang parts –
allows you to increase search rankings and to provide a sense of customer security by displaying
your status on your website.
Increasing your credibility markets to the information search process by keeps you in front of the
customer and ahead of the competition.
1.3 Evaluation of Alternatives
Just because you stand out among the competition doesn’t mean a customer will absolutely
purchase your product or service. In fact, now more than ever, customers want to be sure they’ve
done thorough research prior to making a purchase. Because of this, even though they may be sure
of what they want, they’ll still want to compare other options to ensure their decision is the right
one.
Marketing to this couldn’t be easier. Keep them on your site for the evaluation of alternatives stage.
Leading insurance provider Geico allows customers to compare rates with other insurance
providers all under their own website – even if the competition can offer a cheaper price. This not
only simplifies the process, it establishes a trusting customer relationship, especially during the
evaluation of alternatives stage.
1.4 Purchase Decision
Somewhat surprisingly, the purchase decision falls near the middle of the six stages of the
consumer buying process. At this point, the customer has explored multiple options, they
understand pricing and payment options and they are deciding whether to move forward with the
purchase or not. That’s right, at this point they could still decide to walk away.
This means it’s time to step up the game in the marketing process by providing a sense of security
while reminding customers of why they wanted to make the purchase in the first time. At this
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stage, giving as much information relating to the need that was created in step one along with why
your brand, is the best provider to fulfil this need is essential.
If a customer walks away from the purchase, this is the time to bring them back. Retargeting or
simple email reminders that speak to the need for the product in question can enforce the purchase
decision, even if the opportunity seems lost. Step four is by far the most important one in the
consumer buying process. This is where profits are either made or lost.
1.5 Purchase
A need has been created, research has been completed and the customer has decided to make a
purchase. All the stages that lead to a conversion have been finished. However, this doesn’t mean
it’s a sure thing. A consumer could still be lost. Marketing is just as important during this stage as
during the previous.
Marketing to this stage is straightforward: keep it simple. Test your brand’s purchase process
online. Is it complicated? Are there too many steps? Is the load time too slow? Can a purchase be
completed just as simply on a mobile device as on a desktop computer? Ask these critical questions
and make adjustments. If the purchase process is too difficult, customers, and therefore revenue,
can be easily lost.
1.6 Post-Purchase Evaluation
Just because a purchase has been made, the process has not ended. In fact, revenues and customer
loyalty can be easily lost. After a purchase is made, it’s inevitable that the customer must decide
whether they are satisfied with the decision that was made or not. They evaluate.
If a customer feels as though an incorrect decision was made, a return could take place. This can
be mitigated by identifying the source of dissonance, and offering an exchange that is simple and
straightforward. However, even if the customer is satisfied with his or her decision to make the
purchase, whether a future purchase is made from your brand is still in question. Because of this,
sending follow-up surveys and emails that thank the customer for making a purchase are critical.
Take the time to understand the six stages of the consumer buying process. Doing this ensures that
your marketing strategy addresses each stage and leads to higher conversions and long-term
customer loyalty.
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1.7 Social Media Today –
After the invention of blogging, social media began to explode in popularity. Sites like Myspace
and LinkedIn gained prominence in the early 2000s, and sites like Photobucket and Flickr
facilitated online photo sharing. YouTube came out in 2005, creating an entirely new way for
people to communicate and share with each other across great distances.
By 2006, Facebook and Twitter both became available to users throughout the world. These sites
remain some of the most popular social networks on the Internet. Other sites like Tumblr, Spotify,
Foursquare and Pinterest began popping up to fill specific social networking niches.
Today, there is a tremendous variety of social networking sites, and many of them can be linked
to allow cross-posting. This creates an environment where users can reach the maximum number
of people without sacrificing the intimacy of person-to-person communication. We can only
speculate about what the future of social networking may look in the next decade or even 100 years
from now, but it seems clear that it will exist in some form for as long as humans are alive.
Globalization as described by Hill is the shift towards a more integrated and interdependent world
economy thereby merging historically distinct and separate national markets into one huge global
marketplace. The Economic Intelligence Unit reported that during the recession which commenced
in 2007, the global market place was affected by changes in exchange rates, inflation and consumer
purchasing behavior.
These changes in the economy forced organizations to remodel business strategies in order
communicate their brands more effectively. Davis writes that one of an organization’s most
valuable assets is its brand and the modern organization needs to realize that capitalizing on its
brand is important as it can help achieve growth, profitability objectives and sustainability. Brands
can be built by means of advertising, meeting customer specific needs, associating a specific type
of image to a product, identifying and closing a gap that competitors have not identified, aggressive
communication and pricing strategies.
As recessions are times of high anxiety, it was important for organizations to keep honest, open
channels of communication and maintain a good reputation in the most cost-effective way . One
of the most popular means of communicating brands during the recession was through social media
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marketing; online or electronic media which facilitates participation, openness, conversation,
community and connectivity amongst online users.
Social media such as Facebook, Twitter and YouTube are dynamic tools that facilitate online
relationships. It is a relatively low-cost form of marketing and allows organizations to engage in
direct and end-user contact. Given the choices made available to consumers and the influential role
of social media marketing, the brands and consumers have a changing role to play in the
organization’s strategy in that they now have an economic impact. Brands influence customer
choice. Customers influence other customers. These chains of events affect repurchases, which
further affect future earnings and long-term organizational sustainability. A leading brand thus
influences consumer’s buying behavior and creates value by generating demand (through
repurchases) and securing future earnings for the business.
Therefore social media marketing represents communication opportunities and requires new and
unconventional thinking to ensure that consumers experience brand orientation and product
orientation . This new era of social engagement and digital communication is paramount to
business strategy.
As organizations become more globally competitive it is important for marketing strategy to
explore more innovative and compelling avenues to attract larger pools of customers.
This leads to the research problems as outlined below.
1.8 MAIN RESEARCH PROBLEM
The social phenomena investigated in the research study that follows are the elements of
consumer’s purchasing behavior in online environments and the influence of social media
marketing in the consumer’s purchase decision. The main problem which this study aims to
address, more specifically the impact of social media marketing as a research tool during the
consumer’s decision-making process when purchasing products or services.
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CHAPTER-2
SUBJECT
Definitions:
2.1 Definition of social media.
It is termed as the collection of online communication of various inputs which may be community-
based or individual, interactions, intercommunications, contents sharing, websites and many more
among different users”. Whereas 3 various social media specialists define the term social media
and their definitions on the various points: it's
 An on-line medium powered by the net for social communication.
 A two-way communication medium.
 A medium that permits creation and exchange of information.
 A medium that is supported by web technology services.
 Are platforms like Twitter, Facebook, Social Gaming, Blogs, Social Bookmarking, etc.
2. Social Media:
It is the computer-based technology that helps sharing of ideas, thoughts, and information through
the building of the virtual networks and communities with people all around the world.
3. Purchasing Behaviour:
It refers to the decisions and the acts that people undertake to buy products or services for an
individual or for their group use.
4. Consumers:
A consumer is defined as an individual or a group of people who pay to consume and goods or
services produced by a seller or any company. (i.e., company, organisations).
5. Social Search:
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these type of social networks helps the people to search various social networking sites and profile
pages of people and permits the user to find a person by way of name, location or subject interest.
Social networking sites such as wink, spoke are good examples.
2.2 Local Forums -
These types of categories are not actually coming under the preview of social networking, but
it plays the role of social networking by way of localised discussion through online and offline.
Mobile phones
Mobiles phones with social networking facility are a powerful platform for selling products.
With the help of mobile phones people came to know about the recent changes, happenings
and discussions in the social media. Mobiles phones enable continuous connection with social
networking sites and firms are using this chance to update their product and services to their
customers through social sites. Firms are using QR codes to make easily available to their
customers about their websites and other services. Smart Phones are enabled with QR code
readability with helps the customer to know the information in an easier and quicker way.
Twitter
Twitter permits the users to post one hundred forty characters to advertise and promote about
their products or services. This message can be a text, website link, photo etc.
Facebook
It helps to post information about a product and enables to post comment on the post. It
facilitates the user to like the page or post and also share the page or post to other users in the
Facebook. The information posted includes text, audio, video and website links. Facebook is
designed in such a way it will connect with twitter page.
Google+
14 Google + contains some of the features of Facebook and is associated with google AdWords
and maps. Google + includes location-based search, navigation services, location-based selling
etc. Google+ helps in marketing activities.
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LinkedIn
It is a social networking site which enables the firms to develop for professional and business
profiles to network with people. Twitter can be merged with LinkedIn page. It helps the users
by providing opportunity by way of generating leads. The pages are similar to Facebook pages
which can be used to promote their product and services.
YouTube
YouTube permits the users to upload videos. YouTube is used to upload advertisements for
target their customers by firms. The taste and style of the customers can be reflected in the
commercial ad’s developed by the companies and it can be used as medium to market the
products by way of advertisements. YouTube videos can be downloaded anytime on request.
Sponsoring of video is possible on YouTube.
Delicious, Digg and Reddit
These are well liked social sites used for marketing activities. These sites are the targets of
social media marketers to advertise their websites and to share the links to their customers.
Blogs
Blogs are webpages developed by companies that contains information about products and
allows consumers, employees to post comments, view and share information to others.
2.3 Importance of consumer buying behaviour
Studying and understanding consumer behaviour allows brands and marketing specialists to
identify what influences consumers and their decisions.
Consumer behaviour analysis helps:
 Identifying consumer pain points – mapping and explaining customers issues and
difficulties with a brand, product, or service.
 Optimizing marketing efforts – understanding the best way to engage with consumers
and convert them.
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 Improve product and brand innovation – identifying what products or services
consumers are missing in the current market, later using the data in product development
or improvement.
But perhaps most importantly, consumer behaviour analysis helps you understand what
consumers think and feel about a brand, what influences them to choose one over the other,
why and how they shop, and how their environment influences their behaviour.
2.4 Benefits of making online purchase
Customers can purchase items from the comfort of their own homes or workplace. Shopping
is made easier and convenient for the customer through the internet. It is also easy to cancel
the transactions. The benefits are:
 Saves time and efforts.
 The convenience of shopping at home.
 Wide variety/range of products are available.
 Good discounts / lower prices.
 Get detailed information about the product.
 We can compare various models/brands.
No pressure shopping
 Generally, in physical stores, the sales representatives try to influence the buyers to buy
the product. While in online shopping, you're free to do as you will.
Online shopping saves time
 Customers do not have to stand in queues in cash counters to pay for the products that have
been purchased by them. They can shop from their home or workplace and do not have to
spend time travelling.
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Comparisons
 There is a wide range of products online. The sellers display all the stuff they've got. This
enables the buyers to choose from a variety of models after comparing the finish, features,
and price of the products on display.
Availability
 The mall is open on 365 x 24 x 7. So, time does not act as a barrier, wherever the vendor
and buyers are.
Online tracking
1) Online consumers can track the order status and delivery status tracking of shipping is also
available.
Online shopping saves money
 To attract customers to shop online, e-retailers and marketers offer discounts to the
customers as they have cut down on real estate and maintenance cost the sellers won't back
out in giving huge discounts.
2.5 Factors influencing online consumer buying
1. Younger Consumers
The younger generations, Millennials and Generation Z, were brought up in the digital
age. Generation Z in particular can’t remember a time before the internet and technology.
They don’t know any different than shopping and browsing online. They’re both
multiscreen generations that like to do online research before making a purchase, so even
if they’re buying in-store they’ve probably done some sort of browsing online first.
2. Smartphones
The first iPhone landed on our doorsteps in 2007, and ever since then the internet has been
far more accessible. Smartphones give consumers quick and easy access to technology no
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matter where they are. Mobile commerce sales rose from Rs.19,21,79,47,50,000 in 2017
to Rs.21,85,02,24,00,000.00 in 2018 so there’s no sign of it slowing down.
3. Store Boredom
Another reason that consumers are opting to buy online instead of going in-store is because
they’ve grown accustomed to exciting and interesting experiences. The boom in high street
retail before the recession brought with it a lot of the same layout and feel to stores. Today’s
consumer has a strong need for invigorating experiences that a lot of stores don’t live up
to. Retailers that can create a positive buying experience will reap the results of more traffic
coming to their stores.
4. New Online Retailers
With the rise of online retailers came a new era of online stores. Online retailers like
Fashion nova, ASOS, Ocado, and Net a Porter grew in huge popularity prompting even
more online stores to pop up, and prompting high street stores to provide their offering
online.
5. Credit Cards
Consumers have always been enthusiastic users of debit and credit cards. This movement
has even been moved onto smartphones in the form of contactless payment. Low interest
rates and high credit card usership has moved consumers towards online retailers. Very
few consumers constantly carry cash anymore so physical stores that don’t except card will
be left behind.
2.6 PROCESS OF ONLINE PURCHASE USING THE SOCIAL NETWORKING SITES
The consumer decision process also called the buyer decision process, helps markets identify how
consumers complete the journey from knowing about a product to making the purchase decision.
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Understanding the buyer buying process is essential for marketing and sales. The consumer or
buyer decision process will enable them to set a marketing plan that convinces them to purchase
the product or service for fulfilling the buyer’s or consumer’s problem.
The consumer decision process is composed of problem recognition, search, evaluation, and
purchase decision. Post-purchase behavior is the result of satisfaction or dissatisfaction that the
consumption provides. The buying process starts when the customer identifies a need or
problem or when a need arises. It can be activated through internal or external stimuli.
Consumers go through 5 stages in deciding to purchase any goods or services.
5 Stages of the consumer decision process (buyer decision process) are;
1. Problem Recognition or Need Recognition.
2. Information Search.
3. Evaluation of Alternatives.
4. Purchase Decision.
5. Post-Purchase Evaluation.
When making a purchase, the buyer goes through these 5 stages of the decision process.
2.6.1 Identify the Problem
This is the first stage of the buying process. A consumer will not initiate a purchase without the
recognition of the needs or wants. When a consumer feels the need to buy a particular product, he
will go for a purchase decision. There is an unmet need or there is a problem which can be solved
by buying a particular product.
Needs arise as there is a problem. For example, you broke your table that you were regular
ling using for your business. And due to this problem, you now have to buy a new table.
Wants arise either because you have needed a product or just because you are influenced by
external factors. For example, you see your friends using a laptop for their project work. You might
also have seen numerous advertisements about how a laptop can help you in your project work.
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Due to this influence, you feel you want to upgrade to a laptop though you may already have a
desktop.
In this stage, the marketer should identify the needs of the consumers and offer the products based
on the desire.
2.6.2 Information search
At this stage, the consumer is aware of his need or want. He also knows that he wants to buy a
product that can relive his problem. Therefore, he wants to know more about the product that can
relive of his problem. This leads to the information search stage.
The consumer will try to find out the options available and the best solution for his problem. The
buyer will look for information in internal and external business environments. A consumer may
look into advertisements, print, videos, online and even might ask his friends and family.
When consumers want to buy a laptop, they look for a laptop, its features, price, discounts,
warranty, after sales service, insurance, and a lot of other important features.
Here, a marketer must offer a lot of information about the product in the form of informative
videos, demos, blog, how-to-do videos, and celebrity interviews.
2.6.3 Evaluation of Alternatives
By now the consumer has done enough research about the kind of product that can solve his
problem. The next step is to evaluate alternative products that can solve his problem. Various
points of information gathered from different sources are used in evaluating alternatives.
Generally, consumers evaluate the alternatives based on a number of attributes of the product.
Looks, durability, quality, price, service, popularity, brand, social media reviews are some to the
factors that consumers consider.
The market offers many products that can solve the problem of a consumer. Hence the consumer
has to make a choice after evaluating the various alternatives available.
At the end of this stage, the consumer will rank his choices and pick a product that best matches
his needs and wants.
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2.6.4 Purchase Decision/Purchase
At this point, customers have already explored multiple options. They are aware of the pricing and
payment options available. Here, consumers are deciding whether to buy that product or not. Yes,
even at this stage they can still drop the purchase and walk away.
Philip Kotler (2009) says, the final purchase decision may be ‘interrupted’ by two factors.
Customer may get a negative feedback from friends or other customers who bought it. For
example, a customer shortlisted a laptop, but his friend gave a negative feedback. This will make
him to change his decision. Furthermore, the decision might also change. Sudden change in
business plans, financial crunch, unexpected higher prices, etc. might lead the consumer to drop
the idea of buying the laptop.
The Consumer, chooses the product that he wants to buy, but many times, he may not actually buy
it for various reasons. At this stage, a marketer should find out the various reasons due to which
the consumer is hesitating to buy. The reasons could be price, value, and change in the needs of
the consumer.
Marketer needs to step up the game. Start by reminding the customers of the reason behind their
decision to buy the product. Furthermore, give as much information regarding your brand
reiterating that you are the best provider of the product that can fulfill his needs.
Retargeting by simple email reminders can enforce the purchase decision.
2.6.5 Post-Purchase Evaluation
This is the last stage and most often ignored by marketers.
After buying the product, customers compare products with their expectations. There can be two
outcomes: Either satisfied or dissatisfied. Consumers will be happy after buying the product if it
has satisfied their needs. But in case the product was not up to his expectations, the consumer will
be dissatisfied. A consumer can be lost even at this stage.
A dissatisfied customer might feel as though he took an incorrect decision. This will result in
returns! Offering an exchange will be a straightforward action. However, even when a customer is
satisfied, there is no guarantee that the customer might be a repeat customer.
27
Customers, either satisfied or dissatisfied, can take actions tot distribute their experience in the
form of customer reviews. This may be done through reviews on customer forums, website, social
media conversations or word of mouth.
A marketer has to make sure that the consumer will be satisfied with the product so that his
experience will lead to repeat customers. Brands need to careful to create positive post-purchase
experience.
Wrapping up
Marketers need to take time to understand the five stages of the consumer buying process. Doing
this establishes that your marketing strategy addresses each component of a consumer buying
behaviour.
28
CHAPTER-03
Industry Profile
3.1: History of E-Commerce
In India, online consumer base is increasing dramatically, as gadgets like smartphones and tablets
are available at reasonable prices and access to 4G and broadband is easy. This technology
adoption by masses has fuelled the success of domestic e-commerce players like Flipkart and
Snapdeal, and lured international players like Amazon and Alibaba into Indian market.
While domestic companies are experimenting with their business models to attract and expand
their customer base, international companies are banking on their deep pockets, strong domain
knowledge and international exposure. One of the fastest growing segments of e-commerce is
online retail. Significant funding is required in India due to underdeveloped e-commerce
ecosystem and e-retailers are deploying large chunks of their investments to build infrastructure
like fulfilment and logistics on their own.
Young population, growing internet penetration and upwardly rising middle class will propel e-
commerce and overall retail business in India in coming years. But this opportunity can only be
encashed by e-commerce business if they have significant understanding of evolution and current
scenario of the Indian e-commerce market which has seen a dotcom burst earlier in 2000. Extant
review of literature from reliable market research reports, books, journals and web has been done
covered in this chapter to present evolution and current status quo of e-retail market in India.
INDIAN SCENARIO
3.2 Types of electronic commerce
There are several ways to characterize different types of electronic commerce. Here five major
type of electronic commerce are discussed based on nature of market relationship-who is selling
to whom and technology based P2P and m-commerce.
• B2B - Business-to-business or B2B electronic commerce is normally used to describe complete
range of product or service e-commerce transactions occurring between two organizations. B2B
includes activities like procurement, supplier management, inventory management, channel
29
management, sales activities, payment management, and service and support. Scope of B2B has
enhanced over the years form sales to promotion of investment, stock trade and financial alliances.
B2B is largest form of ecommerce in the world. B2B transactions in India has shown growth of
over 30- 40% and soon to reach mark of $100 billion. Some of the leading B2B exchanges in India
are Tradeindia.com (India’s largest B2B portal), AuctionIndia.com, Indiamart.com, Fast parts and
Free Markets.
• B2C - Direct commercial transactions between businesses and consumers are termed under
Business-to-Consumer e-commerce. This new genre of e-commerce bagged popularity in late
1990s after internet became more accessible. B2C e-commerce includes online travel, online
retail/e-tailing, online classifieds, digital downloads and financial services. In India online travel
holds 71% of B2C market but online retail is also significantly catching up with 16% of total B2C
market. Flipkart.com, myntra.com, Jabong.com, Shoppoing.indiatimes.com and
Homeshop18.com are few of the leading online retailers. Since past few years online services like
hotel booking, matrimonial classifieds, banking, and bill payment are also gaining grounds. Ex.
Amazon, Amazon Prime, Amazon Originals.
• C2C - Consumer-to-consumer commerce is prevalent since ages, even before internet, it has just
transformed into a global phenomenon due to worldwide connectivity. In Consumer-to-consumer
e-commerce consumer can sell to each other on an auction site/common platform provided by an
online market maker. Customer make a listing of the product on the website and relies on the
market maker, who catalogues, optimize search engines, set transaction procedures so that product
gets displayed, sold and paid for with ease. eBay.in is one of the leading C2C e-commerce market
maker in India. Ex. E-Bay, OLX.
• P2P - Peer to Peer lending (P2P lending) is one of the methods of obtaining finances for your
business. P2P functions as an online platform offering ease of access, flexibility and choice of
lending and borrowing for lenders and borrowers. P2P model aggregates lenders and borrowers,
facilitates the matching of lenders with borrowers. Lenders can get earn interest higher than from
bank savings, while the borrowers can obtain funds at an interest rate lower than banks. 1. P2P
business model The P2P lending model is based on the crowd-funding model. Most of the P2P
lending platforms are organised as NBFC (Non-Banking Financial Companies)
Fintech companies. Unlike traditional banking and financial institutions, the P2P model is a
30
modern credit model to meet current business credit needs. A few P2P platforms offering services
include Faircent, Paisadukaan, Finzy, Rupeecircle, and so on.
The P2P lending offers a platform for aggregation of all types of savings from individuals, high
net worth (HNI), Hindu Undivided Families (HUFs) and other non-banking institutions. Under the
P2P business model, an auction is conducted where the lender can make a bid for a borrower’s
loan requirements and the borrower can either accept or reject the bid. Further, the platform can
offer services such as credit assessment, recovering loans, and so on. The platform generally co-
ordinates the transaction between the lender and the borrower. Ex. LenDenClub.
• M-commerce - M-Commerce is E-commerce on mobile phones. E-Commerce introduced
Anytime online transactions and M-Commerce introduced anytime anywhere online transactions.
The ubiquity, reachability, mobility and flexibility features of M-Commerce have increased the
mobile users and mobile internet subscribers in India.
Mobile money transfer, Mobile ticketing, Mobile vouchers, coupons and loyalty cards, Mobile
vouchers, coupons and loyalty cards, Location-based services, Information services are
the M- Commerce services which the mobile subscribers can use through different mobile
applications using internet. Ex. Google Pay, Phone Pay, Paytm are widely used by the people in
India for cashless transactions.
3.3 Five Value Delivery Methods for Ecommerce Innovation
Here are a few of the popular approaches taken by industry-leaders and market disruptors.
1. D2C – Direct to consumer.
By cutting out the middleman, a new generation of consumer brands have built loyal followings
with rapid growth. Online retailers like Warby Parker and Casper set the standard for vertical
disruption, but brands like Glossier are showing us how D2C can continue to be an area for
innovation and growth.
2. White label and private label.
To “white label” is to apply your name and brand to a generic product purchased from a distributor.
In private labelling, a retailer hires a manufacturer to create a unique product for them to sell
31
exclusively. With private labelling and white labelling, you can stay lean on your investments in
design and production and look for an edge in technology and marketing.
3. Wholesaling.
In a wholesaling approach, a retailer offers its product in bulk at a discount. Wholesaling is
traditionally a B2B practice, but many retailers have offered it to budget-conscious consumers in
a B2C context.
4. Drop shipping.
One of the fastest growing methods of ecommerce is drop shipping.Typically, drop shippers’
market and sell items fulfilled by a third-party supplier, like AliExpress or Pointful. Drop shippers
act as a middle man by connecting buyers to manufacturers. Easy-to-use tools allow
BigCommerce users to integrate inventory from suppliers around the world for their storefronts.
5. Subscription service.
As early as the 1600s, publishing companies in England used a subscription model to deliver books
monthly to their loyal customers. With ecommerce, businesses are going beyond periodicals
and fruit of the month clubs. Today, virtually every industry has seen the arrival of subscription
services to bring convenience and savings to customers.
Online Shopping:
Online shopping became popular during the Internet boom in 1999-2000. Amazon.com, the online
bookstore founded by Jeff Bezos, created history by becoming the first bookstore with a presence
only on the Internet. Following the success of Amazon, many bookstores with a physical presence
also created an online presence on the Internet. Later, portals such as Yahoo.com and MSN.com
also started online shopping channels where people could buy more than just books. Closer home,
portals such as Indiatim .
The major advantages on online shopping are, it is convenient, faster and sometimes also cheaper.
For instance, rather than standing in a long queue and waiting for your turn to purchase a ticket,
people are finding it simpler to log on to a website and buy it. In some instances, you may have to
pay a premium for an online purchase but it is still preferred because the convenience factor is
32
higher.
For instance, if you want to buy movie tickets online you may have to shell out a small premium
over the actual price of the ticket.
Travel is the most popular category for online purchases. Not surprisingly, the maximum number
of online transactions in the country is made at irctc.co.in, the site of the Indian Railways, where
train tickets can be purchased online. Air tickets are also a growing category in online purchases.
People can go to the air.
You can purchase almost anything online — starting with groceries and greeting cards to cell
phones and ringtones for the cell phones, everything can be purchased online. While most people
still find it convenient to buy their groceries from the neighbourhood shop, many people are
purchasing rail and air tickets over the Internet. In addition, people and corporates as well, are also
purchasing a variety of services online — such as a broking service or job search service.
33
CHAPTER 4
RESEARCH DESIGN
Title of the study:
THE INFLUENCE OF SOCIAL NETWORK ON ONLINE PURCHASING
BEHAVIOUR OF CONSUMERS.
Social media has nowadays become an essential tool for consumers online in this generation.
There is no surprise that all kinds of businesses nowadays have turned towards social media
to find and connect with their target market. It is said that
Statement of the Problem:
How social networking sites influences the buying behaviour of the consumers?
This research is completely focusing on understanding the social networks and their impacts
on consumer for buying behaviour. As we know that the internet is nowadays the initial and
primary source of information, companies are constantly focusing on improving their
presence online.
Objectives of the study:
The main objective of this study are as follows:
1. The study an in-detailed concept of social media.
2. The examine the impact of social media on consumer buying behaviour.
Scope of the study:
This report will give us a brief knowledge about the various types of social media
platforms that influence the consumer buying behaviour.
Sampling Method:
Convenience sampling – The participants were selected based on their availability and
interests to take part.
Sample Size – 112
34
Methodology:
The descriptive research design is used for analysing and studying the influence of social
network on online purchasing behaviour of consumers.
Limitations of the study:
1. Does not produce representative results.
2. Time consuming as people usually do not fill in the details immediately
35
CHAPTER-5
Data analysis and Interpretation
Table No 5.1: Age of the respondents
AGES RESPONSES PERCENTAGE (%)
15-25 110 99.1
25-35 0 0
35-45 2 0.9
45-60 0 0
Analysis
Here most of the respondents are aged between 15-25 and the other respondents are aged between
35-45.
Graph No 5.1: Age of the respondents
36
Inference:
From the above pie chart, it is inferred that almost all the respondents are between the age group
of 15-25 and the rest 0.9% of the respondents are aged between 35-45.
Table No 5.2: Gender of the respondents
GENDER RESPONSES PERCENTAGE (%)
MALE 59 52.7
FEMALE 50 44.6
PREFER NOT TO SAY 3 2.7
Analysis
In my collected data 52.7.% of respondents are male. Whereas, 44.6% of respondents are female.
And the rest 3% prefer not to say their gender.
Graph No 5.2: Gender of the respondents
Inference
In my collected data 52.7.% of respondents are male. Whereas, 44.6% of respondents are female.
And the rest 3% prefer not to say their gender.
37
Table No 5.3: Usage of social media by respondents
OPTIONS RESPONSES PERCENTAGE (%)
YES 109 97.3
NO 1 0.9
MAYBE 2 1.8
Analysis:
The above pie chart shows that 97.3% of people use social media sites on daily basis. And from
my data collected from 112 respondents, 87 respondents use social media.
Graph No 5.3: Usage of social media by respondents
Inference:
From the above pie chart, it is inferred that 97.3% of people use social media sites on daily basis.
And from my data collected from 112 respondents, 87 respondents use social media.
38
Table No 5.4: Use of social media by respondents
OPTIONS RESPONSES PERCENTAGE (%)
SHOPPING 21 18.8
CHATTING 32 28.6
INFORMATION 49 43.8
MAKING FRIENDS 21 8.9
Analysis:
Above given tables shows that 43.8% of the people use social media for gathering information
from social media , 28.6% of the respondents use social media for chatting, 18.8% of them use
social media for shopping and the rest 8.9% of the people use it for making friends.
Graph No 5.4: Purpose of Social Media Usage
Inference:
From the above pie chart, it is inferred that 43.8% of the people use social media for gathering
information from social media, 28.6% of the respondents use social media for chatting, 18.8% of
them use social media for shopping and the rest 8.9% of the people use it for making friends.
39
Table No 5.5: Types of social media used by respondents
OPTIONS RESPONSES PERCENTAGE (%)
FACEBOOK 3 2.7
INSTAGRAM 79 70.5
WHATSAPP 28 25
SNAPCHAT 3 2.7
Analysis:
Above given table shows that 70.5% of the respondents use Instagram the most, 25% of them use
WhatsApp and the rest 1.5 % of them use Facebook and 3% of them use Snapchat.
Graph No 5.5: Type of Social Media used the most
Inference:
From the above pie chart, it is inferred that 70.5% of the respondents use Instagram the most, 25%
of them use WhatsApp and the rest 1.5 % of them use Facebook and 3% of them use Snapchat.
40
Table No 5.6: Attention paid to the advertisements on social media websites by the
respondents
OPTIONS RESPONSES PERCENTAGE (%)
YES 60 53.6
NO 17 15.2
MAYBE 35 31.3
Analysis:
Above given table shows that 53.6% of the respondents have paid attention to the advertisements
shown on the social media websites. 31.3% of the people haven’t paid attention to the advertises
shown on the websites. Rest 15.2% may or may not have paid attention to the advertisements
shown on the social media
Graph No 5.6: Paid attention to advertisements on social media websites
41
Inference:
From the above pie chart, it is inferred that 53.6% of the respondents have paid attention to the
advertisements shown on the social media websites. 31.3% of the people haven’t paid attention to
the advertises shown on the websites. Rest 15.2% may or may not have paid attention to the
advertisements shown on the social media.
Table No 5.7: Trust on social media by the respondents
OPTIONS RESPONSES PERCENTAGE (%)
YES 13 11.6
NO 35 31.3
MAYBE 64 57.1
Analysis:
Above given table shows that 57.1% of the respondents may or may not trust social media. 11.6%
of the people trust using social media & 31.3% of them do not trust social media.
Graph No 5.7: Trusting Social Media
42
Inference:
From the above pie chart, it is inferred that, 57.1% of the respondents may or may not trust social
media. 11.6% of the people trust using social media & 31.3% of them do not trust social media.
Table No 5.8: Social media influencing buying decisions of respondents
OPTIONS RESPONSES PERCENTAGE (%)
STRONGLY AGREE 11 9.8
AGREE 37 33
NEUTRAL 48 42.9
DISAGREE 12 10.7
STRONGLY DISAGREE 4 3.6
Analysis:
Above given table shows that 42.9% of the respondents have neutral influence of social media in
buying decision. 33% of the people agree that social media does influence in buying
decision.10.7% of people disagree that social media does not influence their buying decision. And
rest 3.6% of the people strongly agree that social media does influence their buying behavior.
43
Graph No 5.8: Influence of social media in buying decision
Inference:
From the above pie chart, it is inferred that 42.9% of the respondents have neutral influence of
social media in buying decision. 33% of the people agree that social media does influence in
buying decision.10.7% of people disagree that social media does not influence their buying
decision. And rest 3.6% of the people strongly agree that social media does influence their buying
behavior.
Table No 5.9: Preferred source of information for buying decision
OPTIONS RESPONSES PERCENTAGE (%)
COMPANY’S WEBSITE 54 48.2
SOCIAL MEDIA 21 18.8
FRIENDS AND
RELATIVES
20 17.9
ADVERTISEMENTS 17 15.2
44
Analysis:
Above given table shows that 48.2% of the respondents use the company’s website as their
preferred source of information for their buying decision. 18.8% of them use social media. 17.9%
of them use friends and relatives as the source and rest 15.2% of them use advertisements as their
preferred source of information for their buying behavior.
Graph No 5.9: Preferred sources for buying decision
Inference:
From the above pie chart, it is inferred that 48.2% of the respondents use the company’s website
as their preferred source of information for their buying decision. 18.8% of them use social media.
17.9% of them use friends and relatives as the source and rest 15.2% of them use advertisements
as their preferred source of information for their buying behavior.
Table No 5.10: Products purchased currently influenced by advertisement on social media
OPTIONS RESPONSES PERCENTAGE (%)
1-5 ITEMS 68 60.7
5-10 ITEMS 15 13.4
MORE THAN 10 ITEMS 25 22.3
NEVER PURCHASED
ANYTHING ONLINE
4 3.6
45
Analysis:
Above given table shows that 60.7% of the respondents have purchased 1-5 items influenced by
advertisement on social media. 22.3 % of the respondents have purchased more than 10 items
influenced by advertisement on social media. 13.4% of the respondents have purchased 5-10 items
influenced by advertisement on social media. Rest 3.6% of the respondents have never purchased
anything online.
Graph No 5.10: Products purchased by getting influenced by the advertisements shown on
social media
Inference:
From the above pie chart, it is inferred that 60.7% of the respondents have purchased 1-5 items
influenced by advertisement on social media. 22.3 % of the respondents have purchased more than
10 items influenced by advertisement on social media. 13.4% of the respondents have purchased
5-10 items influenced by advertisement on social media. Rest 3.6% of the respondents have never
purchased anything online.
46
Table No 5.11: Time spent on social media per week
OPTIONS RESPONSES PERCENTAGE (%)
0 0 0.9
2 24 21.4
4 25 22.3
6 22 19.6
10 or more 40 35.7
Analysis:
Above given table shows that, 35.7% of the respondents have spent 10 or more than 10 hours of
their time using social media. 22.3% of the people have spent around 4 hours a week using social
media. 21.4% of them have spent around 2 hours. And 19.6% of them have spent around 6 hours
using social media. 0.9% of them have never used social media.
Graph No 5.11: Total time spent on social media
47
Inference:
From the above pie chart, it is inferred that 35.7% of the respondents have spent 10 or more than
10 hours of their time using social media. 22.3% of the people have spent around 4 hours a week
using social media. 21.4% of them have spent around 2 hours. And 19.6% of them have spent
around 6 hours using social media. 0.9% of them have never used social media.
Table No 5.12: Social Media sites able to seek out products/ services information actively
OPTIONS RESPONSES PERCENTAGE (%)
YES 58 51.8
NO 10 8.9
MAYBE 44 39.3
Analysis:
Above given table shows that 51.8% of the respondents think that social media sites are able to
seek out products/services information initiatively. 39.3% of them may or may not seek for the
same. 8.9% of the respondents do not find that social media sites help to seek out products /
services information initiatively
48
Graph No 5.12: Outcomes of social media
Inference:
From the above pie chart, it is inferred that 51.8% of the respondents think that social media sites
are able to seek out products/services information initiatively. 39.3% of them may or may not seek
for the same. 8.9% of the respondents do not find that social media sites help to seek out products
/ services information initiatively.
Table No 5.13: Prejudgment towards the products
OPTIONS RESPONSES PERCENTAGE (%)
YES 72 64.3
NO 13 11.6
MAYBE 27 24.1
49
Analysis:
Above given table shows that 64.3% of the respondents have either positive or negative
prejudgment towards a particular product or service before an actual purchase. 24.15 of them may
or may not have one. 11.6% of them do not have any prejudgment.
Graph No 5.13: Prejudgment towards the products
Inference:
From the above pie chart, it is inferred that 64.3% of the respondents have either positive or
negative prejudgment towards a particular product or service before an actual purchase. 24.15 of
them may or may not have one. 11.6% of them do not have any prejudgment.
50
Table No 5.14: Factors causing prejudgment
OPTIONS RESPONSES PERCENTAGE (%)
PREVIOUS EXPERIENCE 58 51.8
KNOWLEDGE OR
AWARENESS OF
PRODUCTS
57 50.9
BRAND REPUTATION 51 45.5
INFORMATION FROM
INTERNET
63 56.3
INFORMATION FROM
MASS MEDIA
23 20.5
INFORMATION FROM
PEERS AND FRIENDS
47 42
Analysis:
Above given table shows that how various factors have caused in the prejudgment for the
consumers before purchasing any product or services.
51
Graph No 5.14: Factors causing prejudgment
Inference:
From the above pie chart, it is inferred that how various factors have caused in the prejudgment
for the consumers before purchasing any product or services.
Table No 5.15: Information search
OPTIONS RESPONSES PERCENTAGE (%)
YES 68 60.7
NO 11 9.8
MAYBE 33 29.5
Analysis:
Above given table shows that, 60.7% of the people tend to seek out information that is consistent
with initial opinion for a purchase. 29.5% of the respondents may or may not. Rest 9.8% of the
respondents do not tend to seek out any information.
52
Graph No 5.15: Information search
Inference:
From the above pie chart, it is inferred that, 60.7% of the people tend to seek out information that
is consistent with initial opinion for a purchase. 29.5% of the respondents may or may not. Rest
9.8% of the respondents do not tend to seek out any information.
Table No 5.16: Social Media Triggers to purchase a product or services
OPTIONS RESPONSES PERCENTAGE (%)
YES 49 43.8
NO 24 21.4
MAYBE 39 34.8
Analysis:
Above given table shows that ,43.8% of the respondents think that social media triggers them to
purchase a product or service. 34.8% of them think that if may or may not trigger them to purchase
a product or services. 21.45 of them thin k that social media doesn’t triggers them to purchase a
product or services.
53
Graph No 5.16: Social Media Triggers to purchase a product or services
Inference:
From the above pie chart, it is inferred that 43.8% of the respondents think that social media
triggers them to purchase a product or service. 34.8% of them think that if may or may not trigger
them to purchase a product or services. 21.45 of them thin k that social media doesn’t triggers
them to purchase a product or services.
Table No 5.17: Attractiveness of advertisements on mass media
OPTIONS RESPONSES PERCENTAGE (%)
YES 55 49.1
NO 24 21.4
MAYBE 33 29.5
Analysis:
Above given table shows that , 49.1% of the respondents found that advertisements on mass media
are still attractive. 29.5% of them think that it may or may not be attractive. Rest 21.4% of the
respondents feel that the advertisements on mass media are not attractive.
54
Graph No 5.17: Attractiveness of advertisements on mass media
Inference:
From the above pie chart, it is inferred that, 49.1% of the respondents found that advertisements
on mass media are still attractive. 29.5% of them think that it may or may not be attractive. Rest
21.4% of the respondents feel that the advertisements on mass media are not attractive.
Table No 5.18: Attractiveness of mass media channels
OPTIONS RESPONSES PERCENTAGE (%)
TV 81 72.3
RADIO 9 8
NEWSPAPER 35 31.3
MAGAZINES 41 36.6
Analysis:
Above given table shows that how various mass media channels are attract the respondents. 72.3
% of the respondents found Tv to be most attractive. 8% of them found radio to be attractive.
31.3% of them found newspaper to be attractive. 36.6% of them found magazines to be attractive.
55
Graph No 5.18: Attractiveness of mass media channels
Inference:
From the above pie chart, it is inferred that how various mass media channels are attract the
respondents. 72.3 % of the respondents found Tv to be most attractive. 8% of them found radio to
be attractive. 31.3% of them found newspaper to be attractive. 36.6% of them found magazines to
be attractive.
Table No 5.19: Comparison of media for information search
OPTIONS RESPONSES PERCENTAGE (%)
STRONGLY DISAGREE 5 4.5
DISAGREE 3 2.7
NEUTRAL 25 22.3
AGREE 53 47.3
STRONGLY AGREE 26 23.2
56
Analysis:
Above given table shows that 47.3% of the respondents agree that information searching is easier
via social media comparing to mass media. 23.2% of the respondents strongly agree for the same.
22.3% of them are neutral about their thought. 4.5% of them strongly disagree and 2.7% of them
disagree for the same.
Graph No 5.19: Comparison of media for information search
Inference:
From the above pie chart, it is inferred that 47.3% of the respondents agree that information
searching is easier via social media comparing to mass media. 23.2% of the respondents strongly
agree for the same. 22.3% of them are neutral about their thought. 4.5% of them strongly disagree
and 2.7% of them disagree for the same.
57
Table No 5.20: Pre search of information on social media before purchase
OPTIONS RESPONSES PERCENTAGE (%)
ALWAYS 37 33
OFTEN 35 31.2
SOMETIMES 32 28.6
RARELY 6 5.4
NEVER 2 1.8
Analysis:
Above given table shows that 33% of the respondents always search for the related information on
social media before purchase. 31.2% of them often search for it. 28.6% of the respondents
sometimes search for the related information on social media site before purchase. 5.4% of the
respondents rarely search for the information and the rest 1.8% of the respondents never searched
for the information on social media before purchase
.
Graph No 5.20: Pre search of information on social media before purchase
58
Inference:
From the above pie chart, it is inferred that 33% of the respondents always search for the related
information on social media before purchase. 31.2% of them often search for it. 28.6% of the
respondents sometimes search for the related information on social media site before purchase.
5.4% of the respondents rarely search for the information and the rest 1.8% of the respondents
never searched for the information on social media before purchase
59
CHAPTER-6
FINDINGS AND RECOMMANDATIONS
6.1: FINDINGS
The key finding of the research is that 97 % of the respondents use social media sites, out of which
majority of them use social media sites for information & shopping. After extensive discussions
with respondents and induct analysis of the feedback received. The research has found out the
following findings about respondents of how the social media influences the purchasing behaviour
of the consumers.
 Majority of them use social media.
 Most of the respondents are between the age group of 15-25.
 Most of them use social media for information & shopping.
 Most of them use Instagram and some of them use WhatsApp the most out of all social
networking sites.
 Most of them pay attention to the advertisements on social media websites.
 Half of them trust social media and few of them don’t.
 Most of them agreed that social media influences their buying decision and few of them
don’t feel that it influences their buying decision.
 Most of them prefer company’s website for source of information for their buying decision.
 Half of the respondents have purchased almost 1-5 items influenced by advertisement on
social media.
 Few of the respondents have spent around 10 or more hours of their time using social media
per week and few of them have spent around 4 hours per week using media sites.
60
 Half of the respondents think that with the social media sites they are able to seek out
products / services information initiatively.
 Majority of the respondents have prejudgement (positive/negative) towards a particular
product or service before an actual consumption.
 Majority of the respondents tend to seek out information that is consistent with your initial
opinion/ preference for a purchase.
 Few of the respondents feel that social media triggers them to purchase a product/ services.
 Half of the respondents find that advertisements on mass media are still attractive.
 Half of the respondents agree that information searching is easier via social media
comparing to mass media (e.g. TV, radio, newspaper and so on ).
 Few of the respondents always search for related information on social media before a
purchase and few of them don’t.
6.2: RECOMMANDATIONS
So here after completing all the study and analysis, the researcher has come up with certain
suggestions for the respondents that will help them in their behavior for purchasing anything.
 Respondents should use social media for information related to the products and services
more often so as to avoid any sort of problems in the coming future.
 Respondents should try looking for the information more on Instagram as, at present there
are more active people on Instagram as compared to any other social networking sites. One
should avoid believing on the forwarded messages on WhatsApp as they can be fake
information about a products or services.
 Respondents should also pay attention to the advertisements on social media websites as
they let the customers know more about a particular product or services.
61
 Respondents should not always completely trust on the information showed on the social
networking sites. One should always try to search about the products or the services l the
other sites as well, like on google or one can also go with word of mouth.
 Respondents should try to look for a product or a service from the official site of that
particular company and then should compare it with the other sites and pages and then
decide from where they want to make a purchase.
 Respondents shouldn’t place an order for more than 1 product at a time as one can’t be sure
of how the product will be and what quality of product will be received at the end. So as to
avoid any sort of losses, respondents shouldn’t place any bulk order.
 Respondents should not only look for the information on social networking sites, but also
the other mediums like radio , TV , newspaper and all.
 Respondents should always look for the related information on social media before making
any purchase, especially when the product is expensive and one has limited information
about it.
 Respondents should always check the sites, if they are the genuine sites or the fake ones
before making any sort of purchase.
62
CHAPTER-7
CONCLUSION
The motive of the research was triggered by personal interest in how social media effect consumer
buying behavior regarding to the five steps need recognition model of buying decision, in this
report for social media examiner website indicated that around 94% of people used social media
such as Facebook for both B2B and B2C, less than this percentage but still important in other
social media platforms. Thus, researcher totally believes that social media advertising have an
impacts on consumer buying behavior, and recommend marketing managers that their social media
advertising should be as a comparative advertising and avoid providing information about the
product itself as consumers don’t rely on social media advertising as a source for information
searching, at the same time it is important to study the differences in the demographic factors if
there are regarding to the results in this study when they design the advertising. In addition, it is
very important to taking into account the limits of this.
Social media, which includes the content, visuals, promotions, discounts and influencers, has the
ability to influence the buying behaviour of consumers.
The effects of social media on consumer behaviour cannot be ignored by brands and businesses.
More buyers are now on social media networks than ever before. Consumers are looking for
reviews and recommendations. Therefore, it’s essential to have a prominent online presence on
various social media platforms.
The latest trend in marketing is the introduction of the social media. Social media has the power
to influence potential customers from the start until the stage of a purchase and beyond as well.
To start off, consumers need awareness about your brand and its offering.
The study indicates that factors influencing consumer buying behavior differs while taking social
media into consideration. Considering the limited time and scope of this research, many theories
related to the subject were covered but in a rather general perspective so as to provide a big picture
for the readers. Therefore, if further research could be conducted, then an in-depth survey should
be carried out in tackling the research objective
63
APPENDICES
1. Do you use Social Media? *
 Yes
 No
 Maybe
2. You use media for: *
 Shopping
 Chatting
 Information
 Make Friends
3. Type of Social Media you use the most: *
 Facebook
 Instagram
 WhatsApp
 Snapchat
4. Do you pay attention to advertisement on social Media websites? *
 Yes
 No
 Maybe
5. Do you trust Social Media? *
 Yes
 No
 Maybe
64
6. Social Media influence your buying decisions: *
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
7. What is your preferred source of information for your buying decision? *
 Company's Website
 Social Media
 Friends & Relatives
 Advertisements
8. How many products have you purchased currently influenced by advertisement on
social media? *
Choose
9. Time (approx.) spent on social media sites per week: *
Choose
10. Do you think that with the social media sites, you are able to seek out products/services
information initiatively (actively)? *
 Yes
 No
 Maybe
65
11. Do you have prejudgement (positive/negative) towards a particular product and/or
service before an actual consumption? *
 Yes
 No
 Maybe
12. Which of the following factors are the cause of your prejudgement? (You may select
more than one answer) *
 Previous experience
 Knowledge or awareness of the brand
 Brand reputation
 Information from the internet (e.g., user reviews, blogs, forums, and so on)
 Information from the mass media (e.g., TV, radio, magazine, and so on)
 Information from peers, friends, or family members
13. Do you tend to seek out information that is consistent with your initial
opinion/preference for a purchase? *
 Yes
 No
 Maybe
14. Do social media triggers you to purchase a product/service? *
 Yes
 No
 Maybe
15. Do you find advertisements on mass media are still attractive? *
 Yes
66
 No
 Maybe
16. Which of the following mass media channels you still find attractive? *
 TV
 Radio
 Newspaper
 Magazines
17. Do you agree that information searching is easier via social media comparing to mass
media (e.g., TV, radio, newspaper, and so on)? *
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
18. Do you search for related information on social media before a purchase? *
 Always
 Often
 Sometimes
 Rarely
 Never
67
BIBLIOGRAPHY
WEBSITES:
https://www.ligsuniversity.com/en/blogpost/the-impact-of-social-media-on-consumer-behavior
https://journals.sagepub.com/doi/full/10.1177/0973258618822624
https://www.researchgate.net/publication/338513337_The_role_of_influencers_in_the_consumer
_decision-making_process/link/5e187cbaa6fdcc2837667960/download
https://www.iedunote.com/buyer-decision-process
https://www.researchgate.net/profile/Adnan-Veysel-
Ertemel/publication/325668080_THE_ROLE_OF_SOCIAL_MEDIA_ADVERTISING_IN_CO
NSUMER_BUYING_BEHAVIOR/links/5b1c41eaa6fdcca67b68261a/THE-ROLE-OF-
SOCIAL-MEDIA-ADVERTISING-IN-CONSUMER-BUYING-BEHAVIOR.pdf
file:///C:/Users/radhi/Downloads/The_role_of_influencers_in_the_consumer_decision-m.pdf

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THE INFLUENCE OF SOCIAL NETWORK ON ONLINE PURCHASING BEHAVIOUR OF CONSUMERS

  • 1. 1 THE INFLUENCE OF SOCIAL NETWORK ON ONLINE PURCHASING BEHAVIOUR OF CONSUMERS Submitting in partial fulfilment of the requirements for the Award of the Degree of BACHELOR OF BUSINESS ADMINISTRATION By RADHIKA PATEL 18MG1A3189 Under the Guidance of Dr. B. SUBHA KRISTU JAYANTI COLLEGE (AUTONOMOUS) K. NARAYANPURA, KOTHANUR POST, BANGALORE - 560077 2020-2021
  • 2. 2 KRISTU JAYANTI COLLEGE (AUTONOMOUS) CERTIFICATE FROM GUIDE This is to certify that this project /dissertation work titled “The Influence of Social Network on Online Purchasing Behaviour of Consumers” is based on an original project study conducted by Radhika Patel (18MG1A3189) of 6th semester BBA under my guidance. This project work has not formed the basis for the award of any degree/ diploma by Bangalore University or any other university. Place: Bangalore Date: Name of the Guide
  • 3. 3 KRISTU JAYANTI COLLEGE (AUTONOMOUS) CERTIFICATE FROM COLLEGE This is to certify that this project/dissertation work titled “The Influence of Social Network on Online Purchasing Behavior of Consumers” is based on an original project study conducted by Radhika Patel (18MG1A3189) of 6th semester BBA under the guidance of .............................................. This project/dissertation work is based on original and has not formed the basis for the award of any degree/diploma by Bangalore University or any other University. Head of the Department Principal Place: Bangalore Place: Bangalore Date: Date:
  • 4. 4 DECLARATION I RADHIKA PATEL, hereby declare that this project work titled titled “The Influence of Social Network on Online Purchasing Behavior of Consumers” is based on the original project/ dissertation conducted by me under the guidance of...................................... This has not been submitted earlier for the award of any other degree/diploma from Bangalore University or any other University. Place: Bangalore Date: Reg. No: (Student’s Name)
  • 5. 5 ACKNOWLEDGEMENT I am indebted to Kristu Jayanti College, Autonomous, Bangalore and Department of Management, which as accepted me for BBA program and provided me with an excellent opportunity to carry out the dissertation work. Firstly, to begin with, I thank Principal Fr. Augustine George, the Financial administrator Fr. Lijo P Thomas, the Director, Library, and Information Technology Fr. Som Zacharia and the Director Jayantian Extension services and Jayantian Alumni Association Fr. Emmanuel P J for providing the necessary facilities. I extend my deep sense of gratitude to my guide Dr. B. Shubha for guiding me to do this work for my academic growth and development. She has been very kind and warm as a person. My refreshing and encounters and experience with her is noteworthy, her wisdom, knowledge and commitment to the highest standards inspired, motivated, and encouraged me to accomplish this study. My parents for giving me education and supporting me in all my endeavours. Finally, I am sincerely obliged to all those who have helped me directly and indirectly in the completion of this study. Above all I am thankful to Almighty whose grace and blessings made everything possible. Last but not the least my friends for their kind support and encouragement which helped me to successfully complete this dissertation
  • 6. 6 TABLE OF CONTENTS CHAPTER NUMBER PARTICULARS PAGE NUMBER 1 Introduction 9-15 2 Subject Definitions 16-21 3 Industry Profile 22-26 4 Research Design 31-32 5 Data Analysis and Interpretation 32-53 6 Findings and Recommendations 54-56 7 Conclusion 57 8 Appendices 58-61 9 Bibliography 62
  • 7. 7 LIST OF TABLES Table No. Title of the Table Page No. 6.1 Age of the respondents 32 6.2 Gender of respondents 34 6.3 Usage of social media by respondents 34-35 6.4 Purpose of usage of social media 36 6.5 Types of social media used 36-37 6.6 Attention paid to advertisement on social media 37-38 6.7 Trust on social media 38-39 6.8 Influence of social media in buying decision 39-40 6.9 Preferred source of information for buying decision 40-41 6.10 Preferred sources for buying decision 41-42 6.11 Products purchased currently influenced by advertisement on social media 42-43 6.12 Time spent using social media per week 43-44 6.13 Social media sites to seek out products/services information actively 44-45 6.14 Outcomes of social media 45-46 6.15 Prejudgment towards products 47-48
  • 8. 8 6.16 Factors causing prejudgment 48-49 6.17 Information search 49-50 6.18 Social media triggering to purchase a product or services 50-51 6.19 Attractiveness of advertisements on mass media 51-52 6.20 Comparison of media for information search 52-53 6.21 Pre search of information on social media before purchase 53-54
  • 9. 9 LIST OF GRAPHS Graph No. Title of the Graph Page No. Table No. Title of the Table Page No. 6.1 Age of the respondents 32 6.2 Gender of respondents 34 6.3 Usage of social media by respondents 34-35 6.4 Purpose of usage of social media 36 6.5 Types of social media used 36-37 6.6 Attention paid to advertisement on social media 37-38 6.7 Trust on social media 38-39 6.8 Influence of social media in buying decision 39-40 6.9 Preferred source of information for buying decision 40-41 6.10 Preferred sources for buying decision 41-42 6.11 Products purchased currently influenced by advertisement on social media 42-43 6.12 Time spent using social media per week 43-44 6.13 Social media sites to seek out products/services information actively 44-45
  • 10. 10 6.14 Outcomes of social media 45-46 6.15 Prejudgment towards products 47-48 6.16 Factors causing prejudgment 48-49 6.17 Information search 49-50 6.18 Social media triggering to purchase a product or services 50-51 6.19 Attractiveness of advertisements on mass media 51-52 6.20 Comparison of media for information search 52-53 6.21 Pre search of information on social media before purchase 53-54
  • 11. 11 CHAPTER 1. 1.1 INTRODUCTION This dissertation aims to explore the impact of social network on online purchasing behaviour of consumers. This chapter commences by presenting a brief introduction about the social media and its implications, as a prerequisite to address the question whether Websites & its related applications like social media that can be considered as medium to influence online purchasing buying behaviour. The consumer buying behaviour is basically the study of how an individual or the organisation selects and uses products and services. This mainly focuses on psychology, motivations, and behaviours, such as how people choose between brands, how they research and shop, and how marketing campaigns can be improved so that brands can effectively influence them. With all the facts and figures, we now understand that the consumer buying behaviour works can establish the best practices before investing in social media advertising and all the other marketing tactics. There are basically 3 factors that influence the consumer buying behaviour: personal, psychological, and social factors. a) Personal factors: It usually deals with the interests and the opinions, which are all affected by their demographics. b) psychological factors: These factors are usually based on the perceptions and attitudes, including the ability to comprehend the information and how people see their needs. c) Social Factors: These are basically made of one’s peer groups, socioeconomic classes, and even social medial influence. The consumer purchase decision is influenced by social media through communication through groups. It is now the web platform that is the new method of developing the business. Social media tries Communication through the social media is a new platform to exchange to modify all the communication between the buyers and the sellers. This study is made of the decision process of consumers for complex purchases, with a special emphasis on how this process is influenced by possible use of social media. Complex buying
  • 12. 12 behavior in this context refers to expensive infrequent purchases with high consumer involvement, significant brand differences, and high risk. Social media is a relatively recent phenomenon. Over the last decade, the World Wide Web has seen a proliferation of user-driven web technologies such as blogs, social networks and media sharing platforms. Collectively called social media, these technologies have enabled the growth of user-generated content, a global community, and the publishing of consumer opinions. This movement now dominates the way we use the web and has given rise to popular platforms like Facebook, YouTube, Instagram and Twitter, where people connect, produce and share content. The social media revolution has led to new ways of seeking and obtaining information on the multitude of products and services in the market. It has enabled consumers to connect and discuss brands with each other quickly and easily. Consumer opinions on products and services are now increasingly dominated by strangers in digital spaces, which in turn influence opinions in the offline space. Social media have empowered consumers, as marketers have no power over the content, timing or frequency of online conversations among consumers. The use of social media by consumers is anxiously followed by marketers, but not much is known about how it influences the consumers’ decision-making. Many studies focus on consumer behavior in the online shopping environment, but without consideration of the effects of the internet on the different phases of consumers’ decision process. This research explores how the presence and abundance of these new information sources is influencing the decision process of consumers for complex purchases. A quantitative survey was used to retroactively attempt to explore aspects of the phases in the decision process. A total of 112 participants completed the survey, and their responses were used to analyses the decision-making process of their complex purchase instances. Social media as electronic word-of-mouth The concept of word-of-mouth (WOM), introduced in the 1950s, has been revitalized by the internet. According to Arndt, WOM is a “person-to-person communication between a receiver and a communicator whom the receiver perceives as non-commercial regarding a brand, product, or service.” WOM is a primary source of information for consumer buying decisions, shaping attitudes, perceptions and expectations of brands, products and services, and impacting all phases of consumer decision-making: from product awareness to selection and post-purchase evaluation.
  • 13. 13 WOM has gained new prominence today as a result of greater inter-connectedness of people on social media. Online or electronic word-of-mouth (eWOM) is a form of WOM where internet users provide reviews and ratings to all kinds of products, brands and services on review sites. It is defined as “any positive or negative statements made by potential, actual, or former customers about a product or company, which is made available to a multitude of people and institutions via the Internet”. Electronic WOM can be disseminated in many ways, on social media platforms or the comments sections on e-commerce sites; and the information disseminated is rarely available through company-led marketing communications. Content generated by internet users, who are also consumers, is generally perceived to be independent of commercial influences. This trust makes consumers go to forums, blogs and other unbiased social media sources to gather information for purchase decisions. The actual purchase is just one step. In fact, there are six stages to the consumer buying process, and as a marketer, you can market to them effectively. 1.1 Problem Recognition Put simply, before a purchase can ever take place, the customer must have a reason to believe that what they want, where they want to be or how they perceive themselves or a situation is different from where they actually are. The desire is different from the reality – this presents a problem for the customer. However, for the marketer, this creates an opportunity. By taking the time to “create a problem” for the customer, whether they recognize that it exists already or not, you’re starting the buying process. To do this, start with content marketing. Share facts and testimonials of what your product or service can provide. Ask questions to pull the potential customer into the buying process. Doing this helps a potential customer realize that they have a need that should be solved. 1.2 Information Search Once a problem is recognized, the customer search process begins. They know there is an issue and they’re looking for a solution. If it’s a new makeup foundation, they look for foundation; if it’s a new refrigerator with all the newest technology thrown in, they start looking at refrigerators – it’s fairly straight forward.
  • 14. 14 As a marketer, the best way to market to this need is to establish your brand or the brand of your clients as an industry leader or expert in a specific field. Methods to consider include becoming a Google Trusted Store or by advertising partnerships and sponsors prominently on all web materials and collaterals. Becoming a Google Trusted Store, like CJ Pony Parts – a leading dealer of Ford Mustang parts – allows you to increase search rankings and to provide a sense of customer security by displaying your status on your website. Increasing your credibility markets to the information search process by keeps you in front of the customer and ahead of the competition. 1.3 Evaluation of Alternatives Just because you stand out among the competition doesn’t mean a customer will absolutely purchase your product or service. In fact, now more than ever, customers want to be sure they’ve done thorough research prior to making a purchase. Because of this, even though they may be sure of what they want, they’ll still want to compare other options to ensure their decision is the right one. Marketing to this couldn’t be easier. Keep them on your site for the evaluation of alternatives stage. Leading insurance provider Geico allows customers to compare rates with other insurance providers all under their own website – even if the competition can offer a cheaper price. This not only simplifies the process, it establishes a trusting customer relationship, especially during the evaluation of alternatives stage. 1.4 Purchase Decision Somewhat surprisingly, the purchase decision falls near the middle of the six stages of the consumer buying process. At this point, the customer has explored multiple options, they understand pricing and payment options and they are deciding whether to move forward with the purchase or not. That’s right, at this point they could still decide to walk away. This means it’s time to step up the game in the marketing process by providing a sense of security while reminding customers of why they wanted to make the purchase in the first time. At this
  • 15. 15 stage, giving as much information relating to the need that was created in step one along with why your brand, is the best provider to fulfil this need is essential. If a customer walks away from the purchase, this is the time to bring them back. Retargeting or simple email reminders that speak to the need for the product in question can enforce the purchase decision, even if the opportunity seems lost. Step four is by far the most important one in the consumer buying process. This is where profits are either made or lost. 1.5 Purchase A need has been created, research has been completed and the customer has decided to make a purchase. All the stages that lead to a conversion have been finished. However, this doesn’t mean it’s a sure thing. A consumer could still be lost. Marketing is just as important during this stage as during the previous. Marketing to this stage is straightforward: keep it simple. Test your brand’s purchase process online. Is it complicated? Are there too many steps? Is the load time too slow? Can a purchase be completed just as simply on a mobile device as on a desktop computer? Ask these critical questions and make adjustments. If the purchase process is too difficult, customers, and therefore revenue, can be easily lost. 1.6 Post-Purchase Evaluation Just because a purchase has been made, the process has not ended. In fact, revenues and customer loyalty can be easily lost. After a purchase is made, it’s inevitable that the customer must decide whether they are satisfied with the decision that was made or not. They evaluate. If a customer feels as though an incorrect decision was made, a return could take place. This can be mitigated by identifying the source of dissonance, and offering an exchange that is simple and straightforward. However, even if the customer is satisfied with his or her decision to make the purchase, whether a future purchase is made from your brand is still in question. Because of this, sending follow-up surveys and emails that thank the customer for making a purchase are critical. Take the time to understand the six stages of the consumer buying process. Doing this ensures that your marketing strategy addresses each stage and leads to higher conversions and long-term customer loyalty.
  • 16. 16 1.7 Social Media Today – After the invention of blogging, social media began to explode in popularity. Sites like Myspace and LinkedIn gained prominence in the early 2000s, and sites like Photobucket and Flickr facilitated online photo sharing. YouTube came out in 2005, creating an entirely new way for people to communicate and share with each other across great distances. By 2006, Facebook and Twitter both became available to users throughout the world. These sites remain some of the most popular social networks on the Internet. Other sites like Tumblr, Spotify, Foursquare and Pinterest began popping up to fill specific social networking niches. Today, there is a tremendous variety of social networking sites, and many of them can be linked to allow cross-posting. This creates an environment where users can reach the maximum number of people without sacrificing the intimacy of person-to-person communication. We can only speculate about what the future of social networking may look in the next decade or even 100 years from now, but it seems clear that it will exist in some form for as long as humans are alive. Globalization as described by Hill is the shift towards a more integrated and interdependent world economy thereby merging historically distinct and separate national markets into one huge global marketplace. The Economic Intelligence Unit reported that during the recession which commenced in 2007, the global market place was affected by changes in exchange rates, inflation and consumer purchasing behavior. These changes in the economy forced organizations to remodel business strategies in order communicate their brands more effectively. Davis writes that one of an organization’s most valuable assets is its brand and the modern organization needs to realize that capitalizing on its brand is important as it can help achieve growth, profitability objectives and sustainability. Brands can be built by means of advertising, meeting customer specific needs, associating a specific type of image to a product, identifying and closing a gap that competitors have not identified, aggressive communication and pricing strategies. As recessions are times of high anxiety, it was important for organizations to keep honest, open channels of communication and maintain a good reputation in the most cost-effective way . One of the most popular means of communicating brands during the recession was through social media
  • 17. 17 marketing; online or electronic media which facilitates participation, openness, conversation, community and connectivity amongst online users. Social media such as Facebook, Twitter and YouTube are dynamic tools that facilitate online relationships. It is a relatively low-cost form of marketing and allows organizations to engage in direct and end-user contact. Given the choices made available to consumers and the influential role of social media marketing, the brands and consumers have a changing role to play in the organization’s strategy in that they now have an economic impact. Brands influence customer choice. Customers influence other customers. These chains of events affect repurchases, which further affect future earnings and long-term organizational sustainability. A leading brand thus influences consumer’s buying behavior and creates value by generating demand (through repurchases) and securing future earnings for the business. Therefore social media marketing represents communication opportunities and requires new and unconventional thinking to ensure that consumers experience brand orientation and product orientation . This new era of social engagement and digital communication is paramount to business strategy. As organizations become more globally competitive it is important for marketing strategy to explore more innovative and compelling avenues to attract larger pools of customers. This leads to the research problems as outlined below. 1.8 MAIN RESEARCH PROBLEM The social phenomena investigated in the research study that follows are the elements of consumer’s purchasing behavior in online environments and the influence of social media marketing in the consumer’s purchase decision. The main problem which this study aims to address, more specifically the impact of social media marketing as a research tool during the consumer’s decision-making process when purchasing products or services.
  • 18. 18 CHAPTER-2 SUBJECT Definitions: 2.1 Definition of social media. It is termed as the collection of online communication of various inputs which may be community- based or individual, interactions, intercommunications, contents sharing, websites and many more among different users”. Whereas 3 various social media specialists define the term social media and their definitions on the various points: it's  An on-line medium powered by the net for social communication.  A two-way communication medium.  A medium that permits creation and exchange of information.  A medium that is supported by web technology services.  Are platforms like Twitter, Facebook, Social Gaming, Blogs, Social Bookmarking, etc. 2. Social Media: It is the computer-based technology that helps sharing of ideas, thoughts, and information through the building of the virtual networks and communities with people all around the world. 3. Purchasing Behaviour: It refers to the decisions and the acts that people undertake to buy products or services for an individual or for their group use. 4. Consumers: A consumer is defined as an individual or a group of people who pay to consume and goods or services produced by a seller or any company. (i.e., company, organisations). 5. Social Search:
  • 19. 19 these type of social networks helps the people to search various social networking sites and profile pages of people and permits the user to find a person by way of name, location or subject interest. Social networking sites such as wink, spoke are good examples. 2.2 Local Forums - These types of categories are not actually coming under the preview of social networking, but it plays the role of social networking by way of localised discussion through online and offline. Mobile phones Mobiles phones with social networking facility are a powerful platform for selling products. With the help of mobile phones people came to know about the recent changes, happenings and discussions in the social media. Mobiles phones enable continuous connection with social networking sites and firms are using this chance to update their product and services to their customers through social sites. Firms are using QR codes to make easily available to their customers about their websites and other services. Smart Phones are enabled with QR code readability with helps the customer to know the information in an easier and quicker way. Twitter Twitter permits the users to post one hundred forty characters to advertise and promote about their products or services. This message can be a text, website link, photo etc. Facebook It helps to post information about a product and enables to post comment on the post. It facilitates the user to like the page or post and also share the page or post to other users in the Facebook. The information posted includes text, audio, video and website links. Facebook is designed in such a way it will connect with twitter page. Google+ 14 Google + contains some of the features of Facebook and is associated with google AdWords and maps. Google + includes location-based search, navigation services, location-based selling etc. Google+ helps in marketing activities.
  • 20. 20 LinkedIn It is a social networking site which enables the firms to develop for professional and business profiles to network with people. Twitter can be merged with LinkedIn page. It helps the users by providing opportunity by way of generating leads. The pages are similar to Facebook pages which can be used to promote their product and services. YouTube YouTube permits the users to upload videos. YouTube is used to upload advertisements for target their customers by firms. The taste and style of the customers can be reflected in the commercial ad’s developed by the companies and it can be used as medium to market the products by way of advertisements. YouTube videos can be downloaded anytime on request. Sponsoring of video is possible on YouTube. Delicious, Digg and Reddit These are well liked social sites used for marketing activities. These sites are the targets of social media marketers to advertise their websites and to share the links to their customers. Blogs Blogs are webpages developed by companies that contains information about products and allows consumers, employees to post comments, view and share information to others. 2.3 Importance of consumer buying behaviour Studying and understanding consumer behaviour allows brands and marketing specialists to identify what influences consumers and their decisions. Consumer behaviour analysis helps:  Identifying consumer pain points – mapping and explaining customers issues and difficulties with a brand, product, or service.  Optimizing marketing efforts – understanding the best way to engage with consumers and convert them.
  • 21. 21  Improve product and brand innovation – identifying what products or services consumers are missing in the current market, later using the data in product development or improvement. But perhaps most importantly, consumer behaviour analysis helps you understand what consumers think and feel about a brand, what influences them to choose one over the other, why and how they shop, and how their environment influences their behaviour. 2.4 Benefits of making online purchase Customers can purchase items from the comfort of their own homes or workplace. Shopping is made easier and convenient for the customer through the internet. It is also easy to cancel the transactions. The benefits are:  Saves time and efforts.  The convenience of shopping at home.  Wide variety/range of products are available.  Good discounts / lower prices.  Get detailed information about the product.  We can compare various models/brands. No pressure shopping  Generally, in physical stores, the sales representatives try to influence the buyers to buy the product. While in online shopping, you're free to do as you will. Online shopping saves time  Customers do not have to stand in queues in cash counters to pay for the products that have been purchased by them. They can shop from their home or workplace and do not have to spend time travelling.
  • 22. 22 Comparisons  There is a wide range of products online. The sellers display all the stuff they've got. This enables the buyers to choose from a variety of models after comparing the finish, features, and price of the products on display. Availability  The mall is open on 365 x 24 x 7. So, time does not act as a barrier, wherever the vendor and buyers are. Online tracking 1) Online consumers can track the order status and delivery status tracking of shipping is also available. Online shopping saves money  To attract customers to shop online, e-retailers and marketers offer discounts to the customers as they have cut down on real estate and maintenance cost the sellers won't back out in giving huge discounts. 2.5 Factors influencing online consumer buying 1. Younger Consumers The younger generations, Millennials and Generation Z, were brought up in the digital age. Generation Z in particular can’t remember a time before the internet and technology. They don’t know any different than shopping and browsing online. They’re both multiscreen generations that like to do online research before making a purchase, so even if they’re buying in-store they’ve probably done some sort of browsing online first. 2. Smartphones The first iPhone landed on our doorsteps in 2007, and ever since then the internet has been far more accessible. Smartphones give consumers quick and easy access to technology no
  • 23. 23 matter where they are. Mobile commerce sales rose from Rs.19,21,79,47,50,000 in 2017 to Rs.21,85,02,24,00,000.00 in 2018 so there’s no sign of it slowing down. 3. Store Boredom Another reason that consumers are opting to buy online instead of going in-store is because they’ve grown accustomed to exciting and interesting experiences. The boom in high street retail before the recession brought with it a lot of the same layout and feel to stores. Today’s consumer has a strong need for invigorating experiences that a lot of stores don’t live up to. Retailers that can create a positive buying experience will reap the results of more traffic coming to their stores. 4. New Online Retailers With the rise of online retailers came a new era of online stores. Online retailers like Fashion nova, ASOS, Ocado, and Net a Porter grew in huge popularity prompting even more online stores to pop up, and prompting high street stores to provide their offering online. 5. Credit Cards Consumers have always been enthusiastic users of debit and credit cards. This movement has even been moved onto smartphones in the form of contactless payment. Low interest rates and high credit card usership has moved consumers towards online retailers. Very few consumers constantly carry cash anymore so physical stores that don’t except card will be left behind. 2.6 PROCESS OF ONLINE PURCHASE USING THE SOCIAL NETWORKING SITES The consumer decision process also called the buyer decision process, helps markets identify how consumers complete the journey from knowing about a product to making the purchase decision.
  • 24. 24 Understanding the buyer buying process is essential for marketing and sales. The consumer or buyer decision process will enable them to set a marketing plan that convinces them to purchase the product or service for fulfilling the buyer’s or consumer’s problem. The consumer decision process is composed of problem recognition, search, evaluation, and purchase decision. Post-purchase behavior is the result of satisfaction or dissatisfaction that the consumption provides. The buying process starts when the customer identifies a need or problem or when a need arises. It can be activated through internal or external stimuli. Consumers go through 5 stages in deciding to purchase any goods or services. 5 Stages of the consumer decision process (buyer decision process) are; 1. Problem Recognition or Need Recognition. 2. Information Search. 3. Evaluation of Alternatives. 4. Purchase Decision. 5. Post-Purchase Evaluation. When making a purchase, the buyer goes through these 5 stages of the decision process. 2.6.1 Identify the Problem This is the first stage of the buying process. A consumer will not initiate a purchase without the recognition of the needs or wants. When a consumer feels the need to buy a particular product, he will go for a purchase decision. There is an unmet need or there is a problem which can be solved by buying a particular product. Needs arise as there is a problem. For example, you broke your table that you were regular ling using for your business. And due to this problem, you now have to buy a new table. Wants arise either because you have needed a product or just because you are influenced by external factors. For example, you see your friends using a laptop for their project work. You might also have seen numerous advertisements about how a laptop can help you in your project work.
  • 25. 25 Due to this influence, you feel you want to upgrade to a laptop though you may already have a desktop. In this stage, the marketer should identify the needs of the consumers and offer the products based on the desire. 2.6.2 Information search At this stage, the consumer is aware of his need or want. He also knows that he wants to buy a product that can relive his problem. Therefore, he wants to know more about the product that can relive of his problem. This leads to the information search stage. The consumer will try to find out the options available and the best solution for his problem. The buyer will look for information in internal and external business environments. A consumer may look into advertisements, print, videos, online and even might ask his friends and family. When consumers want to buy a laptop, they look for a laptop, its features, price, discounts, warranty, after sales service, insurance, and a lot of other important features. Here, a marketer must offer a lot of information about the product in the form of informative videos, demos, blog, how-to-do videos, and celebrity interviews. 2.6.3 Evaluation of Alternatives By now the consumer has done enough research about the kind of product that can solve his problem. The next step is to evaluate alternative products that can solve his problem. Various points of information gathered from different sources are used in evaluating alternatives. Generally, consumers evaluate the alternatives based on a number of attributes of the product. Looks, durability, quality, price, service, popularity, brand, social media reviews are some to the factors that consumers consider. The market offers many products that can solve the problem of a consumer. Hence the consumer has to make a choice after evaluating the various alternatives available. At the end of this stage, the consumer will rank his choices and pick a product that best matches his needs and wants.
  • 26. 26 2.6.4 Purchase Decision/Purchase At this point, customers have already explored multiple options. They are aware of the pricing and payment options available. Here, consumers are deciding whether to buy that product or not. Yes, even at this stage they can still drop the purchase and walk away. Philip Kotler (2009) says, the final purchase decision may be ‘interrupted’ by two factors. Customer may get a negative feedback from friends or other customers who bought it. For example, a customer shortlisted a laptop, but his friend gave a negative feedback. This will make him to change his decision. Furthermore, the decision might also change. Sudden change in business plans, financial crunch, unexpected higher prices, etc. might lead the consumer to drop the idea of buying the laptop. The Consumer, chooses the product that he wants to buy, but many times, he may not actually buy it for various reasons. At this stage, a marketer should find out the various reasons due to which the consumer is hesitating to buy. The reasons could be price, value, and change in the needs of the consumer. Marketer needs to step up the game. Start by reminding the customers of the reason behind their decision to buy the product. Furthermore, give as much information regarding your brand reiterating that you are the best provider of the product that can fulfill his needs. Retargeting by simple email reminders can enforce the purchase decision. 2.6.5 Post-Purchase Evaluation This is the last stage and most often ignored by marketers. After buying the product, customers compare products with their expectations. There can be two outcomes: Either satisfied or dissatisfied. Consumers will be happy after buying the product if it has satisfied their needs. But in case the product was not up to his expectations, the consumer will be dissatisfied. A consumer can be lost even at this stage. A dissatisfied customer might feel as though he took an incorrect decision. This will result in returns! Offering an exchange will be a straightforward action. However, even when a customer is satisfied, there is no guarantee that the customer might be a repeat customer.
  • 27. 27 Customers, either satisfied or dissatisfied, can take actions tot distribute their experience in the form of customer reviews. This may be done through reviews on customer forums, website, social media conversations or word of mouth. A marketer has to make sure that the consumer will be satisfied with the product so that his experience will lead to repeat customers. Brands need to careful to create positive post-purchase experience. Wrapping up Marketers need to take time to understand the five stages of the consumer buying process. Doing this establishes that your marketing strategy addresses each component of a consumer buying behaviour.
  • 28. 28 CHAPTER-03 Industry Profile 3.1: History of E-Commerce In India, online consumer base is increasing dramatically, as gadgets like smartphones and tablets are available at reasonable prices and access to 4G and broadband is easy. This technology adoption by masses has fuelled the success of domestic e-commerce players like Flipkart and Snapdeal, and lured international players like Amazon and Alibaba into Indian market. While domestic companies are experimenting with their business models to attract and expand their customer base, international companies are banking on their deep pockets, strong domain knowledge and international exposure. One of the fastest growing segments of e-commerce is online retail. Significant funding is required in India due to underdeveloped e-commerce ecosystem and e-retailers are deploying large chunks of their investments to build infrastructure like fulfilment and logistics on their own. Young population, growing internet penetration and upwardly rising middle class will propel e- commerce and overall retail business in India in coming years. But this opportunity can only be encashed by e-commerce business if they have significant understanding of evolution and current scenario of the Indian e-commerce market which has seen a dotcom burst earlier in 2000. Extant review of literature from reliable market research reports, books, journals and web has been done covered in this chapter to present evolution and current status quo of e-retail market in India. INDIAN SCENARIO 3.2 Types of electronic commerce There are several ways to characterize different types of electronic commerce. Here five major type of electronic commerce are discussed based on nature of market relationship-who is selling to whom and technology based P2P and m-commerce. • B2B - Business-to-business or B2B electronic commerce is normally used to describe complete range of product or service e-commerce transactions occurring between two organizations. B2B includes activities like procurement, supplier management, inventory management, channel
  • 29. 29 management, sales activities, payment management, and service and support. Scope of B2B has enhanced over the years form sales to promotion of investment, stock trade and financial alliances. B2B is largest form of ecommerce in the world. B2B transactions in India has shown growth of over 30- 40% and soon to reach mark of $100 billion. Some of the leading B2B exchanges in India are Tradeindia.com (India’s largest B2B portal), AuctionIndia.com, Indiamart.com, Fast parts and Free Markets. • B2C - Direct commercial transactions between businesses and consumers are termed under Business-to-Consumer e-commerce. This new genre of e-commerce bagged popularity in late 1990s after internet became more accessible. B2C e-commerce includes online travel, online retail/e-tailing, online classifieds, digital downloads and financial services. In India online travel holds 71% of B2C market but online retail is also significantly catching up with 16% of total B2C market. Flipkart.com, myntra.com, Jabong.com, Shoppoing.indiatimes.com and Homeshop18.com are few of the leading online retailers. Since past few years online services like hotel booking, matrimonial classifieds, banking, and bill payment are also gaining grounds. Ex. Amazon, Amazon Prime, Amazon Originals. • C2C - Consumer-to-consumer commerce is prevalent since ages, even before internet, it has just transformed into a global phenomenon due to worldwide connectivity. In Consumer-to-consumer e-commerce consumer can sell to each other on an auction site/common platform provided by an online market maker. Customer make a listing of the product on the website and relies on the market maker, who catalogues, optimize search engines, set transaction procedures so that product gets displayed, sold and paid for with ease. eBay.in is one of the leading C2C e-commerce market maker in India. Ex. E-Bay, OLX. • P2P - Peer to Peer lending (P2P lending) is one of the methods of obtaining finances for your business. P2P functions as an online platform offering ease of access, flexibility and choice of lending and borrowing for lenders and borrowers. P2P model aggregates lenders and borrowers, facilitates the matching of lenders with borrowers. Lenders can get earn interest higher than from bank savings, while the borrowers can obtain funds at an interest rate lower than banks. 1. P2P business model The P2P lending model is based on the crowd-funding model. Most of the P2P lending platforms are organised as NBFC (Non-Banking Financial Companies) Fintech companies. Unlike traditional banking and financial institutions, the P2P model is a
  • 30. 30 modern credit model to meet current business credit needs. A few P2P platforms offering services include Faircent, Paisadukaan, Finzy, Rupeecircle, and so on. The P2P lending offers a platform for aggregation of all types of savings from individuals, high net worth (HNI), Hindu Undivided Families (HUFs) and other non-banking institutions. Under the P2P business model, an auction is conducted where the lender can make a bid for a borrower’s loan requirements and the borrower can either accept or reject the bid. Further, the platform can offer services such as credit assessment, recovering loans, and so on. The platform generally co- ordinates the transaction between the lender and the borrower. Ex. LenDenClub. • M-commerce - M-Commerce is E-commerce on mobile phones. E-Commerce introduced Anytime online transactions and M-Commerce introduced anytime anywhere online transactions. The ubiquity, reachability, mobility and flexibility features of M-Commerce have increased the mobile users and mobile internet subscribers in India. Mobile money transfer, Mobile ticketing, Mobile vouchers, coupons and loyalty cards, Mobile vouchers, coupons and loyalty cards, Location-based services, Information services are the M- Commerce services which the mobile subscribers can use through different mobile applications using internet. Ex. Google Pay, Phone Pay, Paytm are widely used by the people in India for cashless transactions. 3.3 Five Value Delivery Methods for Ecommerce Innovation Here are a few of the popular approaches taken by industry-leaders and market disruptors. 1. D2C – Direct to consumer. By cutting out the middleman, a new generation of consumer brands have built loyal followings with rapid growth. Online retailers like Warby Parker and Casper set the standard for vertical disruption, but brands like Glossier are showing us how D2C can continue to be an area for innovation and growth. 2. White label and private label. To “white label” is to apply your name and brand to a generic product purchased from a distributor. In private labelling, a retailer hires a manufacturer to create a unique product for them to sell
  • 31. 31 exclusively. With private labelling and white labelling, you can stay lean on your investments in design and production and look for an edge in technology and marketing. 3. Wholesaling. In a wholesaling approach, a retailer offers its product in bulk at a discount. Wholesaling is traditionally a B2B practice, but many retailers have offered it to budget-conscious consumers in a B2C context. 4. Drop shipping. One of the fastest growing methods of ecommerce is drop shipping.Typically, drop shippers’ market and sell items fulfilled by a third-party supplier, like AliExpress or Pointful. Drop shippers act as a middle man by connecting buyers to manufacturers. Easy-to-use tools allow BigCommerce users to integrate inventory from suppliers around the world for their storefronts. 5. Subscription service. As early as the 1600s, publishing companies in England used a subscription model to deliver books monthly to their loyal customers. With ecommerce, businesses are going beyond periodicals and fruit of the month clubs. Today, virtually every industry has seen the arrival of subscription services to bring convenience and savings to customers. Online Shopping: Online shopping became popular during the Internet boom in 1999-2000. Amazon.com, the online bookstore founded by Jeff Bezos, created history by becoming the first bookstore with a presence only on the Internet. Following the success of Amazon, many bookstores with a physical presence also created an online presence on the Internet. Later, portals such as Yahoo.com and MSN.com also started online shopping channels where people could buy more than just books. Closer home, portals such as Indiatim . The major advantages on online shopping are, it is convenient, faster and sometimes also cheaper. For instance, rather than standing in a long queue and waiting for your turn to purchase a ticket, people are finding it simpler to log on to a website and buy it. In some instances, you may have to pay a premium for an online purchase but it is still preferred because the convenience factor is
  • 32. 32 higher. For instance, if you want to buy movie tickets online you may have to shell out a small premium over the actual price of the ticket. Travel is the most popular category for online purchases. Not surprisingly, the maximum number of online transactions in the country is made at irctc.co.in, the site of the Indian Railways, where train tickets can be purchased online. Air tickets are also a growing category in online purchases. People can go to the air. You can purchase almost anything online — starting with groceries and greeting cards to cell phones and ringtones for the cell phones, everything can be purchased online. While most people still find it convenient to buy their groceries from the neighbourhood shop, many people are purchasing rail and air tickets over the Internet. In addition, people and corporates as well, are also purchasing a variety of services online — such as a broking service or job search service.
  • 33. 33 CHAPTER 4 RESEARCH DESIGN Title of the study: THE INFLUENCE OF SOCIAL NETWORK ON ONLINE PURCHASING BEHAVIOUR OF CONSUMERS. Social media has nowadays become an essential tool for consumers online in this generation. There is no surprise that all kinds of businesses nowadays have turned towards social media to find and connect with their target market. It is said that Statement of the Problem: How social networking sites influences the buying behaviour of the consumers? This research is completely focusing on understanding the social networks and their impacts on consumer for buying behaviour. As we know that the internet is nowadays the initial and primary source of information, companies are constantly focusing on improving their presence online. Objectives of the study: The main objective of this study are as follows: 1. The study an in-detailed concept of social media. 2. The examine the impact of social media on consumer buying behaviour. Scope of the study: This report will give us a brief knowledge about the various types of social media platforms that influence the consumer buying behaviour. Sampling Method: Convenience sampling – The participants were selected based on their availability and interests to take part. Sample Size – 112
  • 34. 34 Methodology: The descriptive research design is used for analysing and studying the influence of social network on online purchasing behaviour of consumers. Limitations of the study: 1. Does not produce representative results. 2. Time consuming as people usually do not fill in the details immediately
  • 35. 35 CHAPTER-5 Data analysis and Interpretation Table No 5.1: Age of the respondents AGES RESPONSES PERCENTAGE (%) 15-25 110 99.1 25-35 0 0 35-45 2 0.9 45-60 0 0 Analysis Here most of the respondents are aged between 15-25 and the other respondents are aged between 35-45. Graph No 5.1: Age of the respondents
  • 36. 36 Inference: From the above pie chart, it is inferred that almost all the respondents are between the age group of 15-25 and the rest 0.9% of the respondents are aged between 35-45. Table No 5.2: Gender of the respondents GENDER RESPONSES PERCENTAGE (%) MALE 59 52.7 FEMALE 50 44.6 PREFER NOT TO SAY 3 2.7 Analysis In my collected data 52.7.% of respondents are male. Whereas, 44.6% of respondents are female. And the rest 3% prefer not to say their gender. Graph No 5.2: Gender of the respondents Inference In my collected data 52.7.% of respondents are male. Whereas, 44.6% of respondents are female. And the rest 3% prefer not to say their gender.
  • 37. 37 Table No 5.3: Usage of social media by respondents OPTIONS RESPONSES PERCENTAGE (%) YES 109 97.3 NO 1 0.9 MAYBE 2 1.8 Analysis: The above pie chart shows that 97.3% of people use social media sites on daily basis. And from my data collected from 112 respondents, 87 respondents use social media. Graph No 5.3: Usage of social media by respondents Inference: From the above pie chart, it is inferred that 97.3% of people use social media sites on daily basis. And from my data collected from 112 respondents, 87 respondents use social media.
  • 38. 38 Table No 5.4: Use of social media by respondents OPTIONS RESPONSES PERCENTAGE (%) SHOPPING 21 18.8 CHATTING 32 28.6 INFORMATION 49 43.8 MAKING FRIENDS 21 8.9 Analysis: Above given tables shows that 43.8% of the people use social media for gathering information from social media , 28.6% of the respondents use social media for chatting, 18.8% of them use social media for shopping and the rest 8.9% of the people use it for making friends. Graph No 5.4: Purpose of Social Media Usage Inference: From the above pie chart, it is inferred that 43.8% of the people use social media for gathering information from social media, 28.6% of the respondents use social media for chatting, 18.8% of them use social media for shopping and the rest 8.9% of the people use it for making friends.
  • 39. 39 Table No 5.5: Types of social media used by respondents OPTIONS RESPONSES PERCENTAGE (%) FACEBOOK 3 2.7 INSTAGRAM 79 70.5 WHATSAPP 28 25 SNAPCHAT 3 2.7 Analysis: Above given table shows that 70.5% of the respondents use Instagram the most, 25% of them use WhatsApp and the rest 1.5 % of them use Facebook and 3% of them use Snapchat. Graph No 5.5: Type of Social Media used the most Inference: From the above pie chart, it is inferred that 70.5% of the respondents use Instagram the most, 25% of them use WhatsApp and the rest 1.5 % of them use Facebook and 3% of them use Snapchat.
  • 40. 40 Table No 5.6: Attention paid to the advertisements on social media websites by the respondents OPTIONS RESPONSES PERCENTAGE (%) YES 60 53.6 NO 17 15.2 MAYBE 35 31.3 Analysis: Above given table shows that 53.6% of the respondents have paid attention to the advertisements shown on the social media websites. 31.3% of the people haven’t paid attention to the advertises shown on the websites. Rest 15.2% may or may not have paid attention to the advertisements shown on the social media Graph No 5.6: Paid attention to advertisements on social media websites
  • 41. 41 Inference: From the above pie chart, it is inferred that 53.6% of the respondents have paid attention to the advertisements shown on the social media websites. 31.3% of the people haven’t paid attention to the advertises shown on the websites. Rest 15.2% may or may not have paid attention to the advertisements shown on the social media. Table No 5.7: Trust on social media by the respondents OPTIONS RESPONSES PERCENTAGE (%) YES 13 11.6 NO 35 31.3 MAYBE 64 57.1 Analysis: Above given table shows that 57.1% of the respondents may or may not trust social media. 11.6% of the people trust using social media & 31.3% of them do not trust social media. Graph No 5.7: Trusting Social Media
  • 42. 42 Inference: From the above pie chart, it is inferred that, 57.1% of the respondents may or may not trust social media. 11.6% of the people trust using social media & 31.3% of them do not trust social media. Table No 5.8: Social media influencing buying decisions of respondents OPTIONS RESPONSES PERCENTAGE (%) STRONGLY AGREE 11 9.8 AGREE 37 33 NEUTRAL 48 42.9 DISAGREE 12 10.7 STRONGLY DISAGREE 4 3.6 Analysis: Above given table shows that 42.9% of the respondents have neutral influence of social media in buying decision. 33% of the people agree that social media does influence in buying decision.10.7% of people disagree that social media does not influence their buying decision. And rest 3.6% of the people strongly agree that social media does influence their buying behavior.
  • 43. 43 Graph No 5.8: Influence of social media in buying decision Inference: From the above pie chart, it is inferred that 42.9% of the respondents have neutral influence of social media in buying decision. 33% of the people agree that social media does influence in buying decision.10.7% of people disagree that social media does not influence their buying decision. And rest 3.6% of the people strongly agree that social media does influence their buying behavior. Table No 5.9: Preferred source of information for buying decision OPTIONS RESPONSES PERCENTAGE (%) COMPANY’S WEBSITE 54 48.2 SOCIAL MEDIA 21 18.8 FRIENDS AND RELATIVES 20 17.9 ADVERTISEMENTS 17 15.2
  • 44. 44 Analysis: Above given table shows that 48.2% of the respondents use the company’s website as their preferred source of information for their buying decision. 18.8% of them use social media. 17.9% of them use friends and relatives as the source and rest 15.2% of them use advertisements as their preferred source of information for their buying behavior. Graph No 5.9: Preferred sources for buying decision Inference: From the above pie chart, it is inferred that 48.2% of the respondents use the company’s website as their preferred source of information for their buying decision. 18.8% of them use social media. 17.9% of them use friends and relatives as the source and rest 15.2% of them use advertisements as their preferred source of information for their buying behavior. Table No 5.10: Products purchased currently influenced by advertisement on social media OPTIONS RESPONSES PERCENTAGE (%) 1-5 ITEMS 68 60.7 5-10 ITEMS 15 13.4 MORE THAN 10 ITEMS 25 22.3 NEVER PURCHASED ANYTHING ONLINE 4 3.6
  • 45. 45 Analysis: Above given table shows that 60.7% of the respondents have purchased 1-5 items influenced by advertisement on social media. 22.3 % of the respondents have purchased more than 10 items influenced by advertisement on social media. 13.4% of the respondents have purchased 5-10 items influenced by advertisement on social media. Rest 3.6% of the respondents have never purchased anything online. Graph No 5.10: Products purchased by getting influenced by the advertisements shown on social media Inference: From the above pie chart, it is inferred that 60.7% of the respondents have purchased 1-5 items influenced by advertisement on social media. 22.3 % of the respondents have purchased more than 10 items influenced by advertisement on social media. 13.4% of the respondents have purchased 5-10 items influenced by advertisement on social media. Rest 3.6% of the respondents have never purchased anything online.
  • 46. 46 Table No 5.11: Time spent on social media per week OPTIONS RESPONSES PERCENTAGE (%) 0 0 0.9 2 24 21.4 4 25 22.3 6 22 19.6 10 or more 40 35.7 Analysis: Above given table shows that, 35.7% of the respondents have spent 10 or more than 10 hours of their time using social media. 22.3% of the people have spent around 4 hours a week using social media. 21.4% of them have spent around 2 hours. And 19.6% of them have spent around 6 hours using social media. 0.9% of them have never used social media. Graph No 5.11: Total time spent on social media
  • 47. 47 Inference: From the above pie chart, it is inferred that 35.7% of the respondents have spent 10 or more than 10 hours of their time using social media. 22.3% of the people have spent around 4 hours a week using social media. 21.4% of them have spent around 2 hours. And 19.6% of them have spent around 6 hours using social media. 0.9% of them have never used social media. Table No 5.12: Social Media sites able to seek out products/ services information actively OPTIONS RESPONSES PERCENTAGE (%) YES 58 51.8 NO 10 8.9 MAYBE 44 39.3 Analysis: Above given table shows that 51.8% of the respondents think that social media sites are able to seek out products/services information initiatively. 39.3% of them may or may not seek for the same. 8.9% of the respondents do not find that social media sites help to seek out products / services information initiatively
  • 48. 48 Graph No 5.12: Outcomes of social media Inference: From the above pie chart, it is inferred that 51.8% of the respondents think that social media sites are able to seek out products/services information initiatively. 39.3% of them may or may not seek for the same. 8.9% of the respondents do not find that social media sites help to seek out products / services information initiatively. Table No 5.13: Prejudgment towards the products OPTIONS RESPONSES PERCENTAGE (%) YES 72 64.3 NO 13 11.6 MAYBE 27 24.1
  • 49. 49 Analysis: Above given table shows that 64.3% of the respondents have either positive or negative prejudgment towards a particular product or service before an actual purchase. 24.15 of them may or may not have one. 11.6% of them do not have any prejudgment. Graph No 5.13: Prejudgment towards the products Inference: From the above pie chart, it is inferred that 64.3% of the respondents have either positive or negative prejudgment towards a particular product or service before an actual purchase. 24.15 of them may or may not have one. 11.6% of them do not have any prejudgment.
  • 50. 50 Table No 5.14: Factors causing prejudgment OPTIONS RESPONSES PERCENTAGE (%) PREVIOUS EXPERIENCE 58 51.8 KNOWLEDGE OR AWARENESS OF PRODUCTS 57 50.9 BRAND REPUTATION 51 45.5 INFORMATION FROM INTERNET 63 56.3 INFORMATION FROM MASS MEDIA 23 20.5 INFORMATION FROM PEERS AND FRIENDS 47 42 Analysis: Above given table shows that how various factors have caused in the prejudgment for the consumers before purchasing any product or services.
  • 51. 51 Graph No 5.14: Factors causing prejudgment Inference: From the above pie chart, it is inferred that how various factors have caused in the prejudgment for the consumers before purchasing any product or services. Table No 5.15: Information search OPTIONS RESPONSES PERCENTAGE (%) YES 68 60.7 NO 11 9.8 MAYBE 33 29.5 Analysis: Above given table shows that, 60.7% of the people tend to seek out information that is consistent with initial opinion for a purchase. 29.5% of the respondents may or may not. Rest 9.8% of the respondents do not tend to seek out any information.
  • 52. 52 Graph No 5.15: Information search Inference: From the above pie chart, it is inferred that, 60.7% of the people tend to seek out information that is consistent with initial opinion for a purchase. 29.5% of the respondents may or may not. Rest 9.8% of the respondents do not tend to seek out any information. Table No 5.16: Social Media Triggers to purchase a product or services OPTIONS RESPONSES PERCENTAGE (%) YES 49 43.8 NO 24 21.4 MAYBE 39 34.8 Analysis: Above given table shows that ,43.8% of the respondents think that social media triggers them to purchase a product or service. 34.8% of them think that if may or may not trigger them to purchase a product or services. 21.45 of them thin k that social media doesn’t triggers them to purchase a product or services.
  • 53. 53 Graph No 5.16: Social Media Triggers to purchase a product or services Inference: From the above pie chart, it is inferred that 43.8% of the respondents think that social media triggers them to purchase a product or service. 34.8% of them think that if may or may not trigger them to purchase a product or services. 21.45 of them thin k that social media doesn’t triggers them to purchase a product or services. Table No 5.17: Attractiveness of advertisements on mass media OPTIONS RESPONSES PERCENTAGE (%) YES 55 49.1 NO 24 21.4 MAYBE 33 29.5 Analysis: Above given table shows that , 49.1% of the respondents found that advertisements on mass media are still attractive. 29.5% of them think that it may or may not be attractive. Rest 21.4% of the respondents feel that the advertisements on mass media are not attractive.
  • 54. 54 Graph No 5.17: Attractiveness of advertisements on mass media Inference: From the above pie chart, it is inferred that, 49.1% of the respondents found that advertisements on mass media are still attractive. 29.5% of them think that it may or may not be attractive. Rest 21.4% of the respondents feel that the advertisements on mass media are not attractive. Table No 5.18: Attractiveness of mass media channels OPTIONS RESPONSES PERCENTAGE (%) TV 81 72.3 RADIO 9 8 NEWSPAPER 35 31.3 MAGAZINES 41 36.6 Analysis: Above given table shows that how various mass media channels are attract the respondents. 72.3 % of the respondents found Tv to be most attractive. 8% of them found radio to be attractive. 31.3% of them found newspaper to be attractive. 36.6% of them found magazines to be attractive.
  • 55. 55 Graph No 5.18: Attractiveness of mass media channels Inference: From the above pie chart, it is inferred that how various mass media channels are attract the respondents. 72.3 % of the respondents found Tv to be most attractive. 8% of them found radio to be attractive. 31.3% of them found newspaper to be attractive. 36.6% of them found magazines to be attractive. Table No 5.19: Comparison of media for information search OPTIONS RESPONSES PERCENTAGE (%) STRONGLY DISAGREE 5 4.5 DISAGREE 3 2.7 NEUTRAL 25 22.3 AGREE 53 47.3 STRONGLY AGREE 26 23.2
  • 56. 56 Analysis: Above given table shows that 47.3% of the respondents agree that information searching is easier via social media comparing to mass media. 23.2% of the respondents strongly agree for the same. 22.3% of them are neutral about their thought. 4.5% of them strongly disagree and 2.7% of them disagree for the same. Graph No 5.19: Comparison of media for information search Inference: From the above pie chart, it is inferred that 47.3% of the respondents agree that information searching is easier via social media comparing to mass media. 23.2% of the respondents strongly agree for the same. 22.3% of them are neutral about their thought. 4.5% of them strongly disagree and 2.7% of them disagree for the same.
  • 57. 57 Table No 5.20: Pre search of information on social media before purchase OPTIONS RESPONSES PERCENTAGE (%) ALWAYS 37 33 OFTEN 35 31.2 SOMETIMES 32 28.6 RARELY 6 5.4 NEVER 2 1.8 Analysis: Above given table shows that 33% of the respondents always search for the related information on social media before purchase. 31.2% of them often search for it. 28.6% of the respondents sometimes search for the related information on social media site before purchase. 5.4% of the respondents rarely search for the information and the rest 1.8% of the respondents never searched for the information on social media before purchase . Graph No 5.20: Pre search of information on social media before purchase
  • 58. 58 Inference: From the above pie chart, it is inferred that 33% of the respondents always search for the related information on social media before purchase. 31.2% of them often search for it. 28.6% of the respondents sometimes search for the related information on social media site before purchase. 5.4% of the respondents rarely search for the information and the rest 1.8% of the respondents never searched for the information on social media before purchase
  • 59. 59 CHAPTER-6 FINDINGS AND RECOMMANDATIONS 6.1: FINDINGS The key finding of the research is that 97 % of the respondents use social media sites, out of which majority of them use social media sites for information & shopping. After extensive discussions with respondents and induct analysis of the feedback received. The research has found out the following findings about respondents of how the social media influences the purchasing behaviour of the consumers.  Majority of them use social media.  Most of the respondents are between the age group of 15-25.  Most of them use social media for information & shopping.  Most of them use Instagram and some of them use WhatsApp the most out of all social networking sites.  Most of them pay attention to the advertisements on social media websites.  Half of them trust social media and few of them don’t.  Most of them agreed that social media influences their buying decision and few of them don’t feel that it influences their buying decision.  Most of them prefer company’s website for source of information for their buying decision.  Half of the respondents have purchased almost 1-5 items influenced by advertisement on social media.  Few of the respondents have spent around 10 or more hours of their time using social media per week and few of them have spent around 4 hours per week using media sites.
  • 60. 60  Half of the respondents think that with the social media sites they are able to seek out products / services information initiatively.  Majority of the respondents have prejudgement (positive/negative) towards a particular product or service before an actual consumption.  Majority of the respondents tend to seek out information that is consistent with your initial opinion/ preference for a purchase.  Few of the respondents feel that social media triggers them to purchase a product/ services.  Half of the respondents find that advertisements on mass media are still attractive.  Half of the respondents agree that information searching is easier via social media comparing to mass media (e.g. TV, radio, newspaper and so on ).  Few of the respondents always search for related information on social media before a purchase and few of them don’t. 6.2: RECOMMANDATIONS So here after completing all the study and analysis, the researcher has come up with certain suggestions for the respondents that will help them in their behavior for purchasing anything.  Respondents should use social media for information related to the products and services more often so as to avoid any sort of problems in the coming future.  Respondents should try looking for the information more on Instagram as, at present there are more active people on Instagram as compared to any other social networking sites. One should avoid believing on the forwarded messages on WhatsApp as they can be fake information about a products or services.  Respondents should also pay attention to the advertisements on social media websites as they let the customers know more about a particular product or services.
  • 61. 61  Respondents should not always completely trust on the information showed on the social networking sites. One should always try to search about the products or the services l the other sites as well, like on google or one can also go with word of mouth.  Respondents should try to look for a product or a service from the official site of that particular company and then should compare it with the other sites and pages and then decide from where they want to make a purchase.  Respondents shouldn’t place an order for more than 1 product at a time as one can’t be sure of how the product will be and what quality of product will be received at the end. So as to avoid any sort of losses, respondents shouldn’t place any bulk order.  Respondents should not only look for the information on social networking sites, but also the other mediums like radio , TV , newspaper and all.  Respondents should always look for the related information on social media before making any purchase, especially when the product is expensive and one has limited information about it.  Respondents should always check the sites, if they are the genuine sites or the fake ones before making any sort of purchase.
  • 62. 62 CHAPTER-7 CONCLUSION The motive of the research was triggered by personal interest in how social media effect consumer buying behavior regarding to the five steps need recognition model of buying decision, in this report for social media examiner website indicated that around 94% of people used social media such as Facebook for both B2B and B2C, less than this percentage but still important in other social media platforms. Thus, researcher totally believes that social media advertising have an impacts on consumer buying behavior, and recommend marketing managers that their social media advertising should be as a comparative advertising and avoid providing information about the product itself as consumers don’t rely on social media advertising as a source for information searching, at the same time it is important to study the differences in the demographic factors if there are regarding to the results in this study when they design the advertising. In addition, it is very important to taking into account the limits of this. Social media, which includes the content, visuals, promotions, discounts and influencers, has the ability to influence the buying behaviour of consumers. The effects of social media on consumer behaviour cannot be ignored by brands and businesses. More buyers are now on social media networks than ever before. Consumers are looking for reviews and recommendations. Therefore, it’s essential to have a prominent online presence on various social media platforms. The latest trend in marketing is the introduction of the social media. Social media has the power to influence potential customers from the start until the stage of a purchase and beyond as well. To start off, consumers need awareness about your brand and its offering. The study indicates that factors influencing consumer buying behavior differs while taking social media into consideration. Considering the limited time and scope of this research, many theories related to the subject were covered but in a rather general perspective so as to provide a big picture for the readers. Therefore, if further research could be conducted, then an in-depth survey should be carried out in tackling the research objective
  • 63. 63 APPENDICES 1. Do you use Social Media? *  Yes  No  Maybe 2. You use media for: *  Shopping  Chatting  Information  Make Friends 3. Type of Social Media you use the most: *  Facebook  Instagram  WhatsApp  Snapchat 4. Do you pay attention to advertisement on social Media websites? *  Yes  No  Maybe 5. Do you trust Social Media? *  Yes  No  Maybe
  • 64. 64 6. Social Media influence your buying decisions: *  Strongly disagree  Disagree  Neutral  Agree  Strongly agree 7. What is your preferred source of information for your buying decision? *  Company's Website  Social Media  Friends & Relatives  Advertisements 8. How many products have you purchased currently influenced by advertisement on social media? * Choose 9. Time (approx.) spent on social media sites per week: * Choose 10. Do you think that with the social media sites, you are able to seek out products/services information initiatively (actively)? *  Yes  No  Maybe
  • 65. 65 11. Do you have prejudgement (positive/negative) towards a particular product and/or service before an actual consumption? *  Yes  No  Maybe 12. Which of the following factors are the cause of your prejudgement? (You may select more than one answer) *  Previous experience  Knowledge or awareness of the brand  Brand reputation  Information from the internet (e.g., user reviews, blogs, forums, and so on)  Information from the mass media (e.g., TV, radio, magazine, and so on)  Information from peers, friends, or family members 13. Do you tend to seek out information that is consistent with your initial opinion/preference for a purchase? *  Yes  No  Maybe 14. Do social media triggers you to purchase a product/service? *  Yes  No  Maybe 15. Do you find advertisements on mass media are still attractive? *  Yes
  • 66. 66  No  Maybe 16. Which of the following mass media channels you still find attractive? *  TV  Radio  Newspaper  Magazines 17. Do you agree that information searching is easier via social media comparing to mass media (e.g., TV, radio, newspaper, and so on)? *  Strongly disagree  Disagree  Neutral  Agree  Strongly agree 18. Do you search for related information on social media before a purchase? *  Always  Often  Sometimes  Rarely  Never