ADDIS ABABA UNIVERSITY

SCHOOL OF COMMERCE

DEPARTMENT OF MARKETING MANAGEMENT

THE EFFECT OF SOCIAL MEDIA MARKETING ON CUSTOMER PURCHASE

DECISION: THE CASE OF ETHIOPIAN AIRLINES

A RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILLMENT OF

THE REQUIREMENT FOR THE COURSE DIGITAL MARKETING AND E-
COMMERCE

By

ANDINET ABDULKADIR
DANIEL TEKLU
ELLENI DEMOZ
FEDILA MUDESIR
FIKRU SHAMBLE

ADVISOR: MULUGETA GEBREMEDHIN (PhD)

January, 2024

ADDIS ABABA, ETHIOPIA

I|Page
Table of Contents Page

ACRONYMS AND ABBREVIATIONS.................................................................................................................II

ABSTRACT.............................................................................................................................................................1
CHAPTER ONE: INTRODUCTION.......................................................................................................................2
1.1 Background of the study...........................................................................................................................2
1.2 Statement of the problem:...............................................................................................................................2
1.3 Basic Research Questions...............................................................................................................................2
1.4 Objectives of the Study...................................................................................................................................3
1.4.1 General Objective....................................................................................................................................3
1.4.2 Specific Objectives..................................................................................................................................3
1.5 Significance of the study................................................................................................................................3
1.6 Scope of the study..........................................................................................................................................3
1.7 Limitations of the Study.................................................................................................................................4
1.8 Definition of Key Terms.................................................................................................................................4
CHAPTER TWO: RELATED LITERATURE REVIEW........................................................................................5
2.1 Introduction....................................................................................................................................................5
CHAPTER THREE: RESEARCH METHODOLOGY............................................................................................5
3.1 Research Methodology...................................................................................................................................5
3.2 Research Design.............................................................................................................................................5
3.3 Population and Sample Design.......................................................................................................................6
3.3.1 Study Population.........................................................................................................................................6
3.3.2 Sampling Technique....................................................................................................................................6
3.3.3 Sample Size.................................................................................................................................................6
3.5 Data Types and Sources.................................................................................................................................6
3.4 Data Collection Method..................................................................................................................................7
3.6 Data Analysis Method....................................................................................................................................7
Reference:................................................................................................................................................................8
Annex.......................................................................................................................................................................9

II | P a g e
ACRONYMS AND ABBREVIATIONS

SPSS: Statistical Package for Social Science

SM: Social Media

SMM: Social Media Marketing

III | P a g e
 ABSTRACT

The main purpose of this study is to assess the effect of social media marketing on customer
purchase decisions in the case of Ethiopian Airlines. The study will employ an explanatory
research design and use a mixed approach. A sample of 384 Ethiopian Airlines travelers will
be selected by using a random sampling technique. A questionnaire will be used to collect
primary data from the respondents. The collected data will be organized, presented, analyzed,
and interpreted quantitatively with the help of SPSS version 29.0. Based on the findings of the
study conclusion will be drawn on how social media marketing affects the choice or purchase
decision of customers of Ethiopian Airlines services. Finally, a recommendation will be on
improvement areas of social media marketing and performance expectations to be dominant in
the industry.

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CHAPTER ONE: INTRODUCTION

This chapter will cover the introductory part of the proposal which is the background of the
study, statement of the problem, research questions, the objective of the study, hypothesis,
definition of terms, significance of the study, and scope of the study.

1.1 Background of the study

1.2 Statement of the problem:

Competition in the airline sector is tough and expanding all the time. Ethiopian Airlines is up
against a lot of competition from international airlines. Taking advantage of social media's
opportunities and monitoring its performance will provide advanced ways to improve customer
service, giving the airline a competitive advantage in terms of boosting existing relationships and
increasing brand awareness. However, there are no research done before on social media
marketing and consumer behavior based on the specific airline industry.

The main problem this study aims to address is the lack of comprehensive understanding
regarding the effect of social media marketing on customer purchase decisions in the airline
industry, specifically for Ethiopian Airlines. Although social media marketing has gained
popularity, there is a significant gap in research that examines its impact on consumer behavior
in the context of Ethiopian Airlines. By identifying the research problem, this study aims to
bridge this gap and contribute to the existing body of knowledge in the field of social media
marketing and its influence on customer purchase decisions.

1.3 Basic Research Questions

The following will be the basic question of the research:

1. What are the current social media marketing strategies employed by Ethiopian Airlines?
2. Do customers are aware about Ethiopian Airlines through social media platforms?
3. Does social media marketing affect customers' purchase decisions?
4. Which social media platforms of Ethiopian Airlines' is most influential?

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1.4 Objectives of the Study

1.4.1 General Objective

The main objective of this study is to analyze and identify the effect of social media marketing
on Ethiopian Airlines customer purchase decisions.

1.4.2 Specific Objectives

The following are some of the specific objectives of the study: -

 To examine the current social media marketing strategies employed by Ethiopian

Airlines.
 To explore customers’ perception and awareness of Ethiopian Airlines through social
media platforms.
 To analyze the effect of social media marketing on customers' purchase decisions.
 To identify the most influential social media platforms for Ethiopian Airlines' target
audience.

1.5 Significance of the study

One of the significances of this study will be serving as a reference for the Ethiopian Airlines
marketing division to better understand the effect of using social media marketing on the
purchase decision of customers. Additionally, it helps the Airline in identifying and improving
its social media marketing.

1.6 Scope of the study

The scope of the study only focuses on individual international travelers of Ethiopian Airlines
customers.

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1.7 Limitations of the Study

One of the major limitations that the researchers list is the sample size of the population taken
from the large number of Customers of the Airline. Time on the other hand will be the other
constraint.

1.8 Definition of Key Terms

Social Media: (SM): as defined in Merriam Webster dictionary, Social media is a form of
electronic communication through which users create online communities to share information,
ideas, personal messages, and other content. It is also characterized as mostly internet or mobile
phone-based applications and technologies that allow users to share information
(Businessdictionary.com)

Social media marketing (SMM): Social media marketing can be simply defined as the use of
social media channels to promote a company and its products. This kind of marketing can be
thought of as a subset of online marketing activities that complete traditional Web-based
promotion strategies, such as e-mail newsletters and online advertising campaigns (Barefoot &
Szabo 2010).

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CHAPTER TWO: RELATED LITERATURE REVIEW

2.1 Introduction

This chapter gives an insight to readers about the theoretical reviews and empirical reviews of
the topics under study. The Hypothesis and conceptual framework of the study is also presented
at the end of this chapter.

CHAPTER THREE: RESEARCH METHODOLOGY

This chapter will discuss various methodological techniques that will be used in the research.
Research Approach, Research Design, Target Population and Sampling Design, Method of Data
Collection, Method of Data Analysis, Validity and Reliability, and finally Ethical Consideration
will be covered in this chapter.

3.1 Research Methodology

A quantitative research approach which has the advantage of emphasizing numerical and
statistical tests to reach a generalized conclusion besides exploring and testing the relationship
between variables (Saunders, 2012) will be applied in this research. Moreover, it is beneficial to
fulfill the purpose and research question of the study as it enables accuracy, as well as the
attainment and analysis of a large number of numerical data. Hence, the quantitative research
method is most appropriate for this research.

3.2 Research Design

As the proposed research work is to explore the Effect of Social Media Marketing on Customer
Purchase Decisions in the Airline industry, an Explanatory research method will be applied. The
reason we chose to apply the Explanatory Research Method is due to its convenience in
indicating if the value of a variable affects the value of another and establishing a link between
them. Carl McDaniel, 2010, further explains that it usually quantifies the level of influence of the
independent variables on the dependent variable.

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3.3 Population and Sample Design

3.3.1 Study Population

Transit Passengers and Passengers originating from Addis Ababa will be considered for this
study. These passengers will be found at Bole International Airport, Addis Ababa, Ethiopia.

3.3.3 Sample Size

To determine our sample size, we have applied Cochran 1977, sampling calculation method
inferring to the infinite number of population and confidence level at 95%.

2
Z Pq
no= 2
e

Where: -
no =Sample size
Z= the selected critical value of the desired confidence level
P= is the estimated proportion of an attribute that is present in the population
q=1-p
e= is the desired level of precision

( 1. 96 )¿2 ( 0. 5 ) ( 0 .5)
no = 2 = 384.16
(0 . 05)

The result from calculating the sample size is 384.16 samples which means that the appropriate
sample size for this study should be at least 384 samples.

3.5 Data Types and Sources

Hox & Boeije, 2005, define sources of data as primary and Secondary. They further explain, the gathering
of primary and secondary data as data collection. They defined data collected directly from sources for a
specific research aim as Primary data. These data can be obtained from experiments, questionnaires, and
interviews are examples. On the other hand, the utilization of these data as a source by other researchers
to build their research is referred to as secondary data.

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3.4 Data Collection Method
The researchers will develop a close-ended questionnaire as it will be easy to gather the required
information effectively in terms of cost and time.

3.6 Data Analysis Method

This is the section where the researchers will present the analysis of the Data collected. The data
will be interpreted using the two most common methods for interpreting quantitative data
descriptive and inferential statistics (Saunders et al., 2009). We will use descriptive analysis to
summarize the information gathered on customers of Ethiopian Airlines' purchase decisions and
give additional context (Given, 2008, p. 209). Frequencies, percentages, mean, minimum value,
maximum value, and standard deviations will be used in the analysis of data.

On the other hand, we will use inferential statistics for the testing of hypotheses and the use of
data to form population conclusions based on the sample (Geisler, 2004). The statistical analysis
software Statistical Package for Social Science (SPSS) version 29.0 will be used to conduct all
the analyses in this study.

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Reference:

Barefoot, D. & Szabo, J. (2010). Friends with benefits: A social media marketing handbook. San
Francisco, CA: No Starch Press

Given, L. M. (2008). The sage encyclopedia of qualitative research methods. Sage.

Hox, J. J., & Boeije, H. R. (2005). Data Collection, Primary vs. Secondary. In Encyclopedia of
Social Measurement (pp. 593-599). Amsterdam: Elsevier.
https://doi.org/10.1016/B0-12-369398-5/00041-4

Malhotra, N. K. (2007). Review of Marketing Research, v–v. https://doi.org/10.1108/s1548-

6435(2007)0000003004

Saunders, M., Lewis, P. &Thornhill, A. (2009). Research Methods for Business Students, (5th
edition), Essex: Pearson Education Limited

Stern, B. L., McDaniel, C., & Gates, R. (1992). Contemporary Marketing Research. Journal of
Marketing Research, 29(3), 379. https://doi.org/10.2307/3172748

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 Annex
ADDIS ABABA UNIVERSITY SCHOOL OF COMMERCE DEPARTMENT OF
DIGITAL MARKETING AND E-COMMERCE

RESEARCH QUESTIONNIARES

This questionnaire has two parts. The first part will focus on the demographic information
of respondents and the second part is questions that help to determine " The Effect of
Social Media Marketing on Customers Purchase Decision: The Case of Ethiopian
Airlines"

Part I: Demographic Character

Please put  mark where you agree

I. Gender

Female Male

II. Age

20 - 30 31 – 50 51-60 Above 6 1

III. Educational Level

Below Diploma Diploma University Degree Above

IV. Occupation

Employed Not Employed Self Employed

Part II:

a. Descriptive data
2. Do you utilize social networking sites like Facebook, Twitter, YouTube, and other similar
sites?

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 Yes No

3. Does social media trigger you to purchase a product?

Yes No

4. In the last two years, how many trips have you taken with Ethiopian Airlines?

1-5 6 - 10 11 - 15 16 - over

5. How familiar are you with Ethiopian Airlines' social media posts, tweets, and other
communications?

Not at all Somewhat well Very well Extremely well

b. Please put  mark where you agree

1 - Strongly Disagree 2 - Disagree 3 - Uncertain 4 - Agree 5 - Strongly Agree

Questions Strongly Disagree Neutral Agree Strongly

Disagree Agree
Ethiopian social media advertisement contains
enough information which is useful for me to
decide ticket purchase.
Ethiopian social media advertising Provides
the information I need.
The information obtained from social media
advertisements is really useful.
Social media advertisement helps to keep me
up-to-date
I found that the content of advertisements on
social media is enjoyable and entertaining
The content on Ethiopian Airlines' social
media channels is innovative and entertaining
I enjoy watching an advertisement on social
media
Social media advertisements do not just sell—
they also entertain me

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I use social media advertising as a reference
for purchasing
I trust social media advertisements as a source
of information
The content of advertisements provided by
Social Media advertising is credible
Social media advertisements is usually
believable
I will be happy to decide if I get a reply on
social media advertisement
Social media which encourages me to give
feedback will make me decide to purchase that
product
Replying to my feedback and comments will
give me confidence in the product
Reading comments and getting more feedback
from other customers trigger me to purchase
Using Social media advertisements saves me
time
Social media advertisement motivates me to
buy the product
I find using social media advertisements useful
Social media advertisement helps me to
accomplish things more quickly
I will likely buy Ethiopian Airlines tickets
usually
I am highly interested to involve in Ethiopian
airline travel
I am satisfied with the social media advertising
and real service of Ethiopian airlines
I have a positive pre-judgment towards a
service of Ethiopian Airlines before actually
buying tickets due to social media
advertisements
I prefer the service of Ethiopian Airlines
because I was influenced by social media
advertisements

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