LIVE PROJECT (EXPERIENTIAL LEARNING) OF

BUSINESS ECONOMICS

BBA107

“TO STUDY THE IMPACT OF SOCIALMEDIA MARKETING ON CONSUMER

PURCHASE DECISION”

Submitted in partial fulfilment of the requirements For

the award of degree of

BACHELOR OF BUSINESS ADMINISTRATION

TO

Guru Gobind Singh Indraprastha University, Delhi

Submitted by Submitted to
Prerna Ms. Megha Sharma
BBA 1st Semester Assistant professor

Division B(Evening) (management department)

Session 2022 – 23
 ACKNOWLEDGEMENT

With profound sense of gratitude and regard. I express my sincere thanks to my guide and mentor

Ms.Megha Sharma for her valuable guidance and the confidence she instilled in me, that helped me in

the successful completion of this project report. Without her help, this project would have been a distant

affair, her thorough understanding of the subject and professional guidance was indeed of immense help

to me.

I am also thankful to the faculty members of our institute who cooperated with me and gave me their

valuable time.

Prerna

BBA-1Y_EB
 INDEX

S.NO. CONTENT PAGE NO. TEACHER’S SIGN

1 INTRODUCTION 4-10
2 REIVEW OF 11-13
LITERATURE
3 RESEARCH 14-15
METHODOLGY
4 DATA ANALYSIS 16-31
AND
INTERPRETATION
5 FINDINGS, 32-35
SUGGESTIONS AND
CONCLUSION
6 BIBLOGRAPHY 36
7 APPENDEX 37-39
.

TABLES OF CONTENTS

SL . NO. CONTENTS PAGE NO:

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1 INTRODUCTION 1-5

CHAPTER 2 REVIEW OF LITERATURE 6 - 20

CHAPTER 3 THEORETICAL FRAMEWORK 21-38

DATA ANALYSIS AND

CHAPTER 4 39 - 59
INTERPRETATION

FINDINGS, SUGGESTIONS &

CHAPTER 5 60 - 63
CONCLUSION

BIBLIOGRAPHY 64

APPENDIX 65-70
CHAPTER 1 INTRODUCTION
 INTRODUCTION

Social media has occupied an important position as a communication tool. It is all about
facilitating people to express and share ideas, thoughts and opinions with others. People across
the globe use social media to connect other people or organisations. The latest trend in marketing
is the introduction of social media. Now-a-days Social media had became very strong tool in
influencing buying decisions of consumer. Social media has the power to influence potential
customers from the start until the stage of a purchase and beyond as well. There are four ways in
which social media influences consumer behaviour. They are : social media(a) builds product
awareness,(b)social proof as a greater force of buying decisions, (c) promotions discounts and
deals on social media,(d)social media influencers.

Social media is a huge influence on consumers when they are attempting to build awareness
about a particular product. A large section of the audience gets to know your brand through the
content that is distributed on social media, in this way people get to know about your product.
Social proof has emerged due to the tendency of people to imitate the behavior of people around
them. Happy customers tend to go about praising the products with likes, shares, reviews and
comments on social media.

When consumers see promotions, discounts and deals on social media, it influences their buying
behavior. Consumers are more likely to buy when they get recommendations from a person they
trust. Celebrities and popular people inspire their audience and influence their buying behavior.
Social media which includes

1
the content, visuals, promotions, discounts and influencers has the ability to influence the buying
behavior of consumers.

In the modern era the using of social networking websites has extensively effect on the
consumers in various ways. There are many online networking sites which affect consumer
behavior. They are Google+, LinkedIn, You tube etc. Now-a-days social media is used by almost
all the ages of consumers like college students, working class and even old age people too. The
main aim of this study is to examine how social media will affect the final consumer behavior
among person who mostly use social media websites. Consumer referred to here is general
public. The study has also undertaken to analyze how social media will affect buying decisions of
general public and the factors that motivate general public to shop through social media
platforms.

Statement of the problem

In today’s world people start their day with smart phones and they are easily attracted towards
recent updates and ads in social media accounts. Now-a-days social media platforms like
Whatsapp, Instagram, You Tube, Facebook etc. influence consumer behavior a lot and also make
purchase very easy through online. Hence the aim of this study is to examine how social media
will influence consumer behavior of general public and also analyze the factors affecting the
general public to purchase through social media platforms.

Objectives of the study

The main objective of this study is to examine the impact of social media on buying
behavior of consumers. Specific objectives of the study are:-

2
 1. To analyse how have social media channels affected buying behaviour ofconsumers.

2. To identify the factors that motivate consumers to shop through socialmedia

platforms.

3. To find out which is the best social media preferred by customers.

Scope of the study

The scope of the study covers the general public, the study will help us to understand the impact
of social media on consumer behavior.

Significance of the study

Social media has an important role in influencing buying decisions of consumer. This study has
made an attempt to understand the influence of social media on consumer behavior. Social media
has the power to influence potential customers from the start until the stage of a purchase and
beyond as well. The study is greatly significant because in today’s world social media has an
important role in day to day activities of people. The study will also reveal how social media will
affect buying decisions of general public and the factors that motivate general public to purchase
through social media platforms.
SOCIAL MEDIA

Social media is interactive digitally-mediated technologies that facilitate the creation or

sharing/exchange of information, ideas, career interests, and other forms of expression via
virtual communities and networks. Social media are used to document memories; learn about
and explore things; advertise oneself ; and form friendships along with the growth of
ideas from the creationof blogs, podcasts, videos, and gaming sites.

Some of the most popular social media websites, with over 100 million registered users,include
Facebook , TikTok, WeChat, Instagram, QZone, Weibo, Twitter, Tu mblr, Baidu Tieba, and
LinkedIn. Depending on interpretation, other popular platforms that are sometimes referred
to as social media services include YouTube, QQ, Quora, Telegram, WhatsApp, LINE,
Snapchat, Pinterest,Viber, Reddit, Discord, VK, Microsoft Teams, and more. Wikis are examples
of collaborative content creation.

.
 CONSUMER BEHAVIOUR

Consumer behaviour is the study of individuals, groups, or organizations and all the activities
associated with the purchase, use and disposal of goods and services, and how the consumer's
emotions, attitudes and preferences affect buying behaviour. The study of consumer behaviour
formally investigates individual qualities such as demographics, personality lifestyles, and
behavioural variables (such as usage rates, usage occasion, loyalty, brand advocacy, and
willingness to provide referrals), in an attempt to understand people's wants and consumption.
Also investigated are the influences on the consumer, from groups such as family, friends, sports,
and reference groups, to society in general, including brand- influencers and opinion leaders.

The study of consumer behaviour assumes that the consumers are actors in the marketplace. The
perspective of role theory assumes that consumers play various roles in the marketplace. Starting
from the information provider, from the user to the payer and to the disposer, consumers play
these roles in the decision process. Consumer behaviour entails "all activities associated with the
purchase, use and disposal of goods and services, including the consumer's emotional, mental
and behavioural responses that precede or follow these activities.

FACTORS INFLUENCING CONSUMER BEHAVIOUR

The marketers try to understand the actions of the consumers in the marketplace and the
underlying motives for such actions. These motives are the factors that influence the consumer
behavior. These are:

33
1. Psychological Factors: The human psychology plays a crucial role in designing the
consumer’s preferences and likes or dislikes for a particular product and services. Some of the
important psychological factors are:

Motivation
Perception
Learning
Attitudes and Beliefs

2. Social Factors: The human beings live in a complex social environment wherein they are
surrounded by several people who have different buying behaviors. Since the man is a social
animal who likes to be acceptable by all tries to imitate the behaviors that are socially
acceptable. Hence, the social factors influence the buying behavior of an individual to a great
extent. Some of the social factors are:

Family

34
 Reference Groups
Roles and status

3. Cultural Factors: It is believed that an individual learns the set of values, perceptions,
behaviors, and preferences at a very early stage of his childhood from the people especially, the
family and the other key institutions which were around during his developmental stage. Thus,
the behavioral patterns are developed from the culture where he or she is brought up. Several
cultural factors are:

Culture
Subculture
Social Class

4. Personal Factors: There are several factors personal to the individuals that influence their
buying decisions. Some of them are:

Age
Income
Occupation
Lifestyle

5. Economical Factors: The last but not the least is the economic factors whichhave a
significant influence on the buying decision of an individual. These are:

Personal Income
Family Income
Income Expectations
Consumer Credit
Liquid Assets of the Consumer
Saving

35
CHAPTER 2 REVIEW OF LITERATURE
This chapter looks at the previous research based on consumers' social media and online buying patterns. It

clarifies the similarities in the relationship that have been proposed in the literature and shows how

emotional engagement affects the processes of buying patterns of Consumers. The effectiveness of social

media can be assessed using the following criteria, which measure Garza‐Reyes et al., (2012) theory of

embeddedness of participation. Finally, the impact of social media on consumer buying decision literature

will also be discussed.

Online social networks

Individuals create public accounts on social media platforms (Facebook, Instagram, Twitter, etc.) to

express their knowledge and memories and upload information about themselves (Bagozzi, 2007). They

communicate with people who have common interests (Bagozzi, 2007). Companies and consumers have

mutual contact and relationships across social media, which changes the way consumers think of marketing

(Al Amin et al., 2020). Because of online social networking, the way businesses communicate with 6 | P a g

e their consumers has shifted, and control has shifted from businesses to consumers (Bennett, 2019).

Online social media portals have been an essential aspect of human contact and engagement, influencing

people's attitudes and communication in various ways (Bernoff & Li, 2008). Consumers' online interactions

with businesses affect goods and brands' value (Al Amin et al., 2020). There are three types of social forces

that can affect a consumer's decision to buy.

1) When people know that a social actor of authority expects them to do something, they call it obedience

(subjective norms) (Argo, J.J., 2020).

2) Internalization (group norm) is when people tend to conform to idealized goals that they share with

others, and

3) When people embrace power because they want to form a bond with another person or a community,

this is referred to as identification (social identity) (Argo, J.J., 2020).

As per the conditions, the strength of these three social control modes may vary (Brown et al., 2007).

When consumers engage with one another, their actions will change (Heinrichs et al., 2011). Disclosure of

knowledge and perspectives among members is one of the most important aspects of online social networks

(Boyd & Ellison, 2007).

Online social networks have become a powerful platform and source of product and service information

and a driving force for action (Subramani & Rajagopalan, 2003). Social media platforms have emerged as
one of the most significant networking sources, resulting in a power transition between users and

conventional messages to information producers (Cheung & Lee, 2010). Social networking sites also enable

users to connect and form virtual communities based on shared interests and 7 | P a g e viewpoints

(Baumgartner & Ebner, 2010). There are different forms of virtual communities that affect consumers'

purchase decisions in different ways

: • Multi-user dungeons (MUDs): a type of game in which players form social bonds (Glassman, M., et al.,

2020).

• Spaces, circles, and lists: rooms (chat rooms), rings (organizations associated with the home pages), and

lists (categories) (group of individuals that sharing information via email) (Woodring, D., et al., 2019).

• Board: online forums that encourage people to post messages about music, movies, cars, and even

restaurants (Li, X. and Cox, A., 2021).

• Blogs: Weblogs, also known as blogs, are personal journals and a form of the online community that is

rapidly growing. Usually, users who have a shared purpose follow blogs(König, M., 2019).

The majority of people who join virtual communities are looking for networking or sharing knowledge,

thoughts, and experiences about topics that they have in common (Constantinides, 2004). There are many

advantages of interactive worlds that can be listed. For example, most individuals in specific communities

communicate, which can help reach a diverse community (Chiang, Wong & Huang, 2019. Consumers may

use virtual communities to learn more about an organization, a product, or a service (Chiang, Wong &

Huang, 2019). Online social networks have surpassed traditional company records as a reliable and

meaningful source of information; therefore, consumers seek products and companies on online social

networks (Dellarocas, 2003). Social networks have an impact on consumers buying decisions because

consumers enjoy interacting and communicating with one another (Chiang, Wong & Huang, 2019). They

like to get constructive or negative advice about various goods or services. 8 | P a g e According to research,

internet users spend 27% of their time on contact (social networking sites, blogs, email), 27% on recreation,

and entertainment, which is more than the time spent gathering, and reading news and personal hobbies

(Denegri‐Knott, 2006). Figure 1 explains the individuals' and consumers' total time by searching and
scrolling on the internet.
 CHAPTER3

RESEARCH METHODOLOGY
Research Methodology

Research methodology is a process used to collect information and data for the purpose of
making decisions. The methodology may include publication research, interviews, surveys and
other research techniques.

Data Collection

The data is collected from both primary and secondary sources.

Primary Data

The source of primary data is through questionnaire based on the objectives.

Secondary Data

The secondary data were collected from books, journals, websites and other published sources.

Sample Design

A self- designed questionnaire was developed and given to general public. The questionnaire is
related to impact of social media on consumer behavior.

Sample Population

The population of the study is general public.

Limitations of the study

• Respondents bias towards the questions.

• The study is conducted within limited time.

• Lack of face to face interaction with respondents.

 CHAPTER 4

DATA ANALYSIS AND

INTERPRETATION
 DATA ANALYSIS AND INTERPRETATION

Table No: 4.1 Usage of social media

Usage of social media Yes No

No. of. respondents 61 0

Figure No: 4.1

Interpretation

Out of total respondents in this survey all the participants use social media. It canbe interpreted
that social media has a great influence in the day to day life of the people.
 Table No: 4.2 Purpose of usage of social media

Purpose of usage Shopping Chatting Information Make Friends

of socialmedia

No. of. 7 22 29 3
respondents

Figure No:4.2

Interpretation

Most of the respondents use social media for information . Along with this theyalso use social
media for chatting. Only few use social media for shopping and making friends.
 Table No:4.3 Type of social media used daily

Type of social Facebook Instagram Whatsapp Snap chat

media used

No. of. respondents 5 15 40 1

Figure No:4.3

Interpretation

Out of 61 respondents, majority of them are using whatsapp daily. Some of themare also using
instagram. Only few are using facebook and snapchat daily.
 Table No:4.4 Time spent on social media per day

Time spent on 0 hour 1-5 hour 5-10 hour 10 hours or

social media per more
day

No. of. 1 42 18 0
respondents

Figure No: 4.4

Interpretation

Out of total respondents in this survey, majority of them spent time on social 1-5 hours per day.
Some of them spent 5-10 hours per day. None of them spent 10 hours or more on social media.
Only one respondent is not spending time on socialmedia daily. It can be interpreted that social
media has became part of our daily life.
 Table No:4.5 Attention paid to advertisement on social media

Attention paid to Yes No Maybe

advertisement on
social media

No. of. 26 18 17
respondents

Figure No: 4.5

Interpretation

Out of total people participated we can understand that most of the respondentsare paying
attention to advertisements on social media. Some of them are not paying attention to social
media. Some of them may be paying attention to advertisements on social media.
 Table No:4.6 Trust on social media

Trust on social media Yes No

No. of. respondents 40 21

Figure No:4.6

Interpretation

Most of the respondents trust on social media. Still 34.4% don’t have trust onsocial media.
 Table No: 4.7 Influence of social media on buying decision

Influence of social Yes No Maybe

media on buying
decision

No. of. 31 13 17
respondents

Figure No: 4.7

Interpretation

Out of 61 respondents , the buying decision of 31 respondents are influenced bysocial media.
Buying decision of 13 respondents are not influenced by social media. Buying decision of 17
respondents may be influenced by social mdia.
 Table No:4.8 percentage of purchase influenced by social media

Percentage of
Below 25% 25%-50% 50%-75% 75%-100%
purchase
influenced by
social media

No. of.
14 34 13 0
respondents

Figure No:4.8

Interpretation

From the above figure and table we can understand that 25%-50% of purchase of34 respondents
are influenced by social media. Along with this 50%-75% of
purchase of 13 respondents and below 25% of purchase of 14 respondents are influenced by
social media. It is interpreted that 75%-100% of purchase of none ofthe respondents are
influenced by social media.

Table No:4.9 Preferred source of information for buying decision

Preferred source
Company’s Social media Friends & Advertisements
of information
website relatives
forbuying
decision

No. of.
9 19 26 7
respondents

Figure No:4.9
Interpretation

Friends and relatives are the most preferred source of information for buyingdecision and next
mostly preferred source is social media. The least preferredsource of information for buying
decision are company’s websites and advertisements.

Table No: 4.10 Type of social media that influence purchase decision

Type of social
media that
influence Instagram Facebook You Tube Twitter Blog Post
purchase
decision

No. of.
30 4 24 0 3
respondents

Figure No: 4.10

Interpretation

Purchase decision of most of the respondents are influenced by instagram and YouTube. Only
few of them are influenced by facebook and blog post. None of them are influenced by twitter.

Figure No:4.11 Factors that drives attention in social media

Factors that The frequent Visual elements How importanta How a productis
drives exposure of of product is to me liked,
attention in product/ advertisements& commented &
social media advertisements products shared by
others

No .of.
12 13 26 10
respondents

Figure No: 4.11

Interpretation

The importance of a product to consumer is the most important factor that drivesattention in
social media. Along with this exposure of products/advertisements, visual elements of
products/advertisements, likes and comments shared by othersare also factors that drives
attention in social media.

Figure No:4.12 Factors that motivate consumers to shop through social media

Factors that motivate

consumers to shop
through social Low Saves time Quality of Easy to Offers &

media price the product make discounts in

payment social media

No. of.
11 12 11 5 22
respondents

Figure No:4.12
Interpretation

From the above table and figure we can understand that most of the respondents are motivated
by offers & discounts in social media to shop through social media.Along with this they are also
motivated by factors like low price , saves time, quality of the product. Only of few of them are
motivated by the factor easy to make payment.

Figure No:4.13 Mostly Preferred online shopping sites

Mostly preferred
Flipkart Myntra Amazon .in
online shopping
sites

No. of. respondents

36 2 23

Figure No: 4.13

Interpretation

Flipkart is the online shopping site that is mostly preferred and next mostlypreferred app is
amazon.in. The least preferred app is Myntra.

Figure No: 4.14 Advantages of social media compared to traditional media

Advantages of There is more Better

Information They save my
social media information and communication
reliability time
compared to easier access with other
traditional consumers and
media business

No. of.
28 11 17 5
respondents

Figure No: 4.14

Interpretation

Most of the respondents have the opinion that there is more information & easier access in
social media compared to traditional media. Some of them have the opinion that social media
saves time & has information reliability compared to traditional media. Only few of them have
the opinion that social media has better communication with other consumers and business
compared to traditional media.
 CHAPTER 5 FINDINGS, SUGGESTIONS AN

CONCLUSION
 FINDINGS

1. All the respondents are using social media.

2. Most of the respondents use social media for information.
3. Majority of the respondents are using whatsapp daily.
4. About 1-5 hours are spent on social media by majority of respondents perday.
5. Many of them are paying attention to advertisement on social mediawebsites.
6. Majority of respondents have trust on social media.
7. Buying decision of majority of respondents are influenced by social media.
8. About 25% - 50% of purchase of most of them are influenced by socialmedia.
9. Friends & relatives are the most preferred source of information for buyingdecision of
many of the respondents.
10. Purchase decision of most of the respondents is influenced by instagram.
11. The importance of a product to the consumer is the factor that drivesattention of
many of respondents in social media.
12. Offers & discounts in social media is the factor that motivate many of themto shop
through social media.
13. Many of the respondents have opinion that social media has moreinformation and
easier access compared to traditional media.
 SUGGESTIONS

• Advertisements on social media should be made more attractive so that morepeople will
be paying attention towards it.

• Social media can provide more information about the products and services,which will
improve the knowledge of the consumer.

• Information provided on social media should be correct and reliable ,whichwill increase
the trust of the people.

• More offers & discounts should be made on products in social media, so thatmore people
will be motivated to shop through social media platforms.
 CONCLUSION

This study shows that social media has a great influence in the behavior of the consumers.
Discounts and deals on social media, likes and comments about the product, social media
influencers, reviews about the product in social media are the factors that influence consumer
behavior. It is also clear from the study that social media has many advantages compared to
traditional media. Consumers are attracted towards the products by watching advertisements in
social media. It is found that offers & discounts in social media is the factor that motivate
consumers to shop through social media platforms. According to the survey flipkart is most
preferred online shopping site. Most of the people are using information available on social
media in case of uncertainties regarding a product. It can be concluded that social media has the
power to influence potential consumers from start until the stage of a purchase and beyond as
well. It also enhanced the knowledge of consumers regarding the products and services. There is
no doubt that, importance of social media will increase in future
 BIBLOGRAPHY

1. Keith A. Quesenberry, “ Social Media Strategy”- Third Edition

2. Claudiu v. Dimofte, Curtis P. Haugtvedt, Richard F. Yalch, “ Consumer Psychology in a Social Media
World”
3. Nripendra P. Rana , Emma L. Slade, Ganesh P. Slade, “ Digital and Social Media Marketing”
4. Barry Connolly, “ Digital Trust”
5. Barbara Cruz, “ Purpose of Social Media”
6. Mufit Aydin, “ Social Media Marketing’s Impact on Brand Perception”
7. Gohar F. Khan, “ Creating Value with Social Media Analytics”
8. Brittany Hennessy, “ Influencer”
9. Philip Graves, “ Consumerology”
10. Nathalie Nahai, “ Webs of Influence”- 2 nd Edition
 APPENDIX

QUESTIONNAIRE

1. Name:
2. Age Group:
• Under 18
• 18-25
• 25-40
• 40 & above
3. Gender:
• Male
• Female
• Other
4. Occupational status:
• Student
• Employed
• Unemployed
5. Do you use social media?
• Yes
• No
6. You use social media for
• Shopping
• Chatting
 • Information
• Make friends
• Other
7. Which of the following type of social media are you using on a dailybasis?
• Facebook
• Instagram
• Whatsapp
• Snap chat
• Other
8. Time you spent on social media per day
• 0 hour
• 1-5 hours
• 5-10 hours
• 10 hours or more
9. Do you pay attention to advertisement on social media websites?
• Yes
• No
• Maybe
10. Do you trust social media?
• Yes
• No
11. Does social media influence your buying decision?
• Yes
• No
• Maybe
12. How much of the purchase do you feel was influenced by social media?
• Below 25%
• 25%-50%
• 50%-75%
• 75%-100%
13. What is your preferred source of information for buying decision?
• Company’ website
• Social media
• Friends & relatives
• Advertisements
• Other
14. Which type of social media influence your purchase decision?
• Instagram
• Facebook
• You Tube
• Twitter
• Blog Post
• Other
15. In your opinion which of these factors drives your attention in socialmedia?
• The frequent exposure of products/advertisements
• Visual elements of advertisements & products
• How important a product is to me
• How much a product is liked, commented & shared by others
• Other