Assignment of Business Research Methods

Submitted to

Sir.Sarfaraz

Research paper conducted by

Majid khan

9206

Sharoon Gulfam

9232

Zain Farooq

9230

M.Adeel

9263

Mujtaba

9216

Mehran Iqbal

9211

Social Media and its Impact on Consumers

Behavior
Abstract:
Technology gives consumer the power to investigate products to label
them and criticize them in equal measure,
and more. Therefore many companies today have pages on social networks to
complement the information held about
products, held by the feedback of consumers about products and tend to relate more to
a company after reading various
reviews. The paper is related to impact of social media on consumers behavior. How
the decision power is effected by the social media is discussed in this paper. The
questionnaire is provided to the people and the result is calculated after the answers are
provided to every question.

Introduction:
In recent years the online environment is viewed by users from a new
perspective, in a commercial way. Its development and the emergence of online stores
have turned users into consumers. Also the most important role of social media has
changed the way of how consumers and marketers communicate. (Hennig-Thurau et
al., 2004) Informational society influences affects the consumer decision processes and
product evaluations.
Social media provides a new channel to
acquire product information through peer communication, (Kozinets, 1999) Moreover, by
using social media, consumers have the power to influence other buyers through
reviews of products or services used. Consumers are also influenced by other
psychosocial characteristics like: income, purchase motivation, company presentation,
company or brand's presence on social networks, demographic variable (age, sex,
disposable income etc.), workplace method of payment, type of stores (online or
physical), etc.
In this paper we study the influence of social networks on the decision to purchase in
the online users. The first section presents a brief introduction to the chosen theme,
followed by relevant information on literature review, where are presented previous
specialized studies. The second part describes the research methodology and data
analysis. Finally, we present conclusions.

Literature review:
Internet and virtual communities have transformed
consumers, societies, and corporations with wide spread access to
information, better social networking and enhanced communication abilities
(Kucuk and Krishnamurthy, 2007).
Social media network are defined as sites which connect unlimited users
from all the world with same interests, hobbies and views. Facebook, twitter,
Instagram, Myspace, LinkedIn and many others are examples of social media
networks that are popular among all levels of consumers.
Users use several online formats to communicate with each other to share
ideas about a given product, service and brand. Now a days social media
plays an important role on the products sales.
The unique aspects of social media and its immense popularity have revolutionized
marketing practices such as advertising and promotion (Hanna, Rohn and Crittenden,
2011)
Social media has influenced consumer behavior about the information of products and
the company. In the last few years can be noticed a great influence of the companies on
online networks. Social media websites provide an opportunity for businesses to
engage and interact with potential consumers, encourage an increased sense of
intimacy with consumers, and build all important relationships with potential consumers.
(Mersey, et al., 2010)
Previous research has indicated that even a small amount of negative information from
a few postings can have substantial impacts on consumer attitudes (Schlosser, 2005).
Palmer (1996) stated that individuals have an underlying need for an emotional bond
with high-involvement products that they buy. Brand development and relationship
development are complementary and substitutable strategies toward this bonding. The
relationship between the brand and the consumer is very important for the company and
strengthening it leads to loyalty.
Due to the advantages of social media in connecting businesses directly to end
consumers, in a timely manner and at a low cost (Kaplan and Haenlein, 2010), has
been seen that a great influence on customer perceptions and behaviors (Williams and
Cothrell, 2000), and has been brought in the center of attention in different industries in
the last few years.

Research Objectives:
The present research aims 3 objectives:
1. Measuring the degree of consumer confidence in purchasing products online
2. Consumer attitudes toward other consumer feedback from online

3. Determine the age group of the consumers that buy the products online

Conceptual frame of work:

In our research we have two variables

Social Media(Independent variable)

Consumer behavior(Dependent variable)
Social media is going to have an impact on the consumer behavior. If the impact
is positive consumers will buy the products online or see the stuff information
online before purchasing the product. If the impact is negative by any means of
the social media the perception of the customer is changed due to the social
media the customer will not buy the product online.

Social
Media
Consumer
Confidence
Attitude
towards
online
feedback

Consum
er
Behavio
ur

Consumers
Group

Research design:
This is a pure/basic type of research done for information/knowledge-gathering
purposes.

Research methodology:
A questionnaire based method is used for the research based on the public opinions.

Data Collection:

Data is collected in the form of questionnaire, conducted upon a sample of 30 social

media users that buy products online.

Conclusion:
After the analysis of the collected information from the 30 subjects, we can conclude the
fact that most consumers who buy online are indeed young, between 25-29 years. As a
result, 47% of the subjects who buy online products are between 25-29 years.
Before purchasing a product on online they usually inform themselves from forums,
companys websites, Facebook accounts or peer reviews. Even more, among the
reasons which most consumers prefer online transactions are convenience (42%) and
the fact that the product is readily delivered home (39%).
Now a days social media has a great impact on people life as well as the companies
products that advertise their products on the social media. From the questionnaire it is
concluded that people have full confidence in the companys name. They fully trust
company policies and buy the products.

Questionnaire of the research:

Which category includes your age? *

17 or younger
18-24
25-34
35-44
45-54
55-64
65+
What is your gender?*
Male
Female
What is your educational background?*
High School
Undergraduate
Postgraduate
Other
Do you use social media?
Yes
No
Which of the following Social Media do you use on a daily basis?
(you can provide more than one answer)
Social Networking Sites (Facebook)
Microblogging (e.g. Twitter)
Blogs/Forums
Social Bookmarking Sites/ Social News (Reddit, Digg)
Photo & Video Sharing sites (e.g. Flickr, Youtube)
On average, how many hours per week do you spend on social media?

0 hour
1 to 3 hours
4 to 6 hours
7 to 9 hours
10 hours or more
Do you have positive thought towards a particular product/service before use?
Always
Most of the Time
Sometimes
Rarely
Never
Do you have negative thoughts towards a particular product/service before use?
Never
Rarely
Sometimes
Most of the Time
Always
Which of the following can influence your decision to purchase a product/service?
(you can provide more than one answer)
Knowledge or awareness of the brand
Previous experience
Information from the internet (e.g. user reviews, blogs, forums)
Brand reputation
Information from mass media (e.g. TV, radio, magazine)
Information from peers, friends or family members.
Do you tend to seek out information that support your initial preference/opinion for a purchase?

Always
Often
Sometimes
Rarely
Never
Have you ever bought a product/service after seeing it on social media
Yes
Not sure
No
Do you still find advertisements on mass media (Tv, radio, newspaper) attractive?
Yes
No
If yes, Which of the following mass media channels do you prefer?
TV
Radio
Newspaper
Magazine
Other (Please Specify)
Do you agree that searching for information on a product or services is easier on social media compared to Mass Media?

Strongly
Agree

Agree

Neither
Agree nor
Disagree

Disagree

Before you buy a product/service do you use social media to checkout more information about it?
No
Yes
If yes, how often do you use social media to find out information about a product/service?

Strongly
Disagree

Never
Less than Once a Month
Once a Month
2-3 Times a Month
Once a Week
2-3 Times a Week
Daily
Rank on a scale of 1 to 5, for the source of information on Social Media you use before a purchase?
(1 being least, 5 being most)

1
Twitter

Facebook

Online Forums/
Communities/ Blogs

YouTube

Social Bookmarking
Sites (e.g. Digg)

Agree

Neither
Agree nor
Disagree

Strongly Agree
a) Do you think that
advertisements via
Social Media is an
effective way to
influence you to try
new

a) Do you

b) Do you

think that
advertisement
s via Social

think that
Social Media
has provided

c) Do
you think
that
marketing

Disagree

Strongly
Disagree

Strongly Agree

products/services?

Agree

more
Media is an
effective
effective way
platforms to
to influence
new
you to try new products/servi
products/servic
ces than
es?
mass media
channels?

Neither
Agree nor
Disagree

Disagree

Strongly
Disagree

via Social
Media is
more
acceptable
than Mass
Media?

b) Do you
a) Do you
b) Do you think that
Social Media has
provided more
effective platforms to
new
products/services
than mass media
channels?

c) Do

think that
think that
Social Media
advertisement has provided
s via Social
more
Media is an
effective
effective way
platforms to
to influence
new
you to try new products/servi
products/servic
ces than
es?
mass media
channels?

you think
that
marketing
via Social
Media is
more
acceptable
than Mass
Media?

b) Do you
a) Do you

c) Do you think that

marketing via Social
Media is more
acceptable than Mass
Media?

think that
think that
Social Media
advertisement has provided
s via Social
more
Media is an
effective
effective way
platforms to
to influence
new
you to try new products/servi
products/servic
ces than
es?
mass media
channels?

c) Do
you think
that
marketing
via Social
Media is
more
acceptable
than Mass
Media?

From question 17c, why do you agree to this?

Do you rely on information provided on Social Media if you have uncertainties regarding the purchase of a product/service?

Always
Often
Sometimes
Rarely
Never
Do you change your initial purchase preference after searching relevant information via Social Media sites?
Never
Rarely
Sometimes
Most of the Time
Always

Are you likely yo share comments/reviews/blogs posts/related articles to peers or friends via Social Media after you purchase a
product/service?
Never
Rarely
Sometimes
Most of the Time
Always
Are you likely to change your attitude towards a certain product/service after you have read positive comments/reviews/online
articles?
Yes
Maybe
No
Do you agree that reviews, comments, post etc on Social Media affect your purchasing decision behaviour?
Strongly Disagree
Disagree
Neither Agree nor Disagree

Agree
Strongly Agree

Do you agree that Social Media provides an effective and powerful platform for consumers to communicate with each other and
the companies
Strongly Disagree
Disagree
Neither Agree nor Disagree
Agree
Strongly Agree

Are information on Social Media regarding products and services of higher credibility than on mass media channels because th
information is beyond the company's control?
Yes
No

Which of the following stage of your buying decision process has been affected mostly because of Social Media? Rank on a sc
to 5. (1 being least, 5 being most)

Exposure
Exposure to
product/service
information

Problem
to
product/servi
ce
information

Recognition

Search
for the
alternatives

Evaluatio
n of
Information

Purchase
review

Exposure
Problem
Problem Recognition

Search for the

alternatives

to
product/servi
ce
information

Recognition

Exposure

Problem

to
product/servi
ce

Recognition

Search
for the
alternatives

Search
for the
alternatives

Evaluatio
n of
Information

Evaluatio
n of
Information

Purchase
review

Purchase
review

information
Exposure
Evaluation of
Information

Search

Problem
to
product/servi
ce
information

Recognition

for the
alternatives

Evaluatio
n of
Information

Purchase
review

Exposure
Search

Problem
Purchase review

to
product/servi
ce
information

Recognition

for the
alternatives

Evaluatio
n of
Information

Purchase
review

Do you think that Social Media complicate your decision making behaviour?
Strongly Disagree
Disagree
Neither Agree nor Disagree
Agree
Strongly Agree
The following factors affect the length of your decision making process. Rank on a scale of 1 to 5 (1 being least, 5 being most)

Strongly
Disagree
Resource
Resource (time,
finance)

(time,
finance)
Resource

Amount of available
information

(time,
finance)

Disagree
Amount

Neither
Agree nor
Disagree
Personal

of available
information

factors (e.g.
pressure)

Amount

Personal

of available
information

factors (e.g.
pressure)

Agree
Uncertain

Strongly
Agree

Risk

ity

Uncertain
ity

Risk

Strongly
Disagree
Resource
Personal factors (e.g.
pressure)

(time,
finance)
Resource

Uncertainity

(time,
finance)
Resource

Risk

(time,
finance)

Disagree
Amount

Neither
Agree nor
Disagree
Personal

of available
information

factors (e.g.
pressure)

Amount

Personal

of available
information

factors (e.g.
pressure)

Amount

Personal

of available
information

factors (e.g.
pressure)

Agree
Uncertain

Strongly
Agree

Risk

ity

Uncertain

Risk

ity

Uncertain

Risk

ity

In your opinion, what is the biggest difference in making a purchase decision between using information from the Social Media
information from the mass media

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