The Impact Of Social Media On Customer Habits - Research Paper Example

The Impact of Social Media on Customer Habits Student’s Name Course Professor’s Name University City (State Abstract Social media which is part of our lives has a major impact on the customer habits. We live in a technological world where information sharing has been revolutionized by the use of internet through social media platforms. People access lots of information from the internet process it through making comparisons researching and asking around. After they are contented to have the right and enough information they select what to acquire. The information sharing has made social media a great marketing and advertising tool where brand advertisers and promoters use in brand introduction promotion and selling. Since social media provide a virtual connection between the sellers and the customers sometimes information is said to be misleading. A section for advertisers and marketers still argue that physical interactions are more instrumental compared to virtue social media interactions. However, information gathered through social media is really available to the brand users and also helps in different decision-making stages in an organised process. Table of Contents Abstract 2 Introduction 5 Research Objectives 6 1.1 Research Objectives 6 1.2: Research Question 7 1.3: Research hypothesis 7 2. LITERATURE REVIEW 8 2.1 Introduction 8 2.2 The Process of Attending, Processing and Selecting the Information 8 2.3 Social Media Purchasing experiences versus in-store Purchasing experience 9 2.4 Changes by social media to different purchase decision stages 10 2.5 Social Groups 11 2.6 Culture and Consumer Psychology 12 Methodology 13 3.1 Research Design and Justification 13 3.2 Research Limitations 13 3.3 Sampling 14 3.4 Research Methods 14 3.5 Research design 14 3.6 Data collection 15 3.7 Data analysis 15 3.8 Data presentation 15 3.9 Timeline 15 3.10 Ethical Considerations 16 Appendix 1. Section 1 17 4.1 Research Questionnaire Introduction 17 4.2 Questionnaire 18 4.3 Questionnaire results 23 Findings 28 Discussion 29 Reflection 30 Bibliography 30 Introduction Social media is the computer-mediated technologies that facilitate and allows the creation, sharing and distribution of ideas, information, interests, careers and other forms of expressions through the use of virtual community and networks. In today’s technological world, social media has become part of people daily lives. Companies use social media in advertising their products in an extensive manner. This research study pursues to investigate the impact of social media on customer habits. The research is aimed at providing the researcher with a better, strong and comprehensive academic knowledge concerning the importance of social media in today’s business organization and the impact that social media has on customer’s habits. The study is significant since it helps in the revolutionization of the relationships that customers have with the organization hence influencing their behaviors towards the products. According to a survey conducted in the year 2016, they were about 1.79 billion monthly active Facebook users which was a 16% increase compared to the year 2015. The emergence and introduction of online stores have created a new perspective on the consumer behaviour. This has been made through chain of how the consumers and marketers communicate with each other while conducting their business. The information that is shared, generated and spread through social media has become instrumental in influencing the consumer decisions process and how the customers evaluate products and services produced by an entity. Through the use of social media, peer communication is enabled in an effective and comprehensive manner. Consumers also use social media as marketers where they help in influencing other buyers through making reviews of products and services that they use. People view such comments and rating don by other consumers then they become motivated to make purchases for the same products and services. Connectively, consumers, are also influenced by other psychosocial factors such as income, company presentation, purchase motivation, brand or company present on social networks, workplace method of payment and demographic variables such as age, sex, and disposable income. High income is largely associated with high purchases since people can afford to purchase goods and services as compared to low-income earners who have less disposable income. People are a social animal who work and make a decision based on how they are motivated or influenced in making them. A company that presents itself and the products it makes as superior quality will attract many customers in buying its products. This study seeks to identify how social media influences the consumer behaviors such as the decision to buy. The study will involve an abstract part that will highlight the entire paper; the introduction part will briefly explain how social media influences the consumer behavior. A literature review will follow which will present, Therefore; the study will be helpful to organizations, policy makers, managers and other people within the marketing field. Research Objectives 1.1 Research Objectives 1. RO1: To investigate the process in which consumers attend, process, and select the information provided through social media before they purchase. 2. RO2: To find out the differences among young students between customer experiences in social media platforms and customer experiences through physical interaction. 3. RO3: to identify has social media brought among the young students in different stages of their decision making. 1.2: Research Question In which ways do young students attend, process, and select the information provided through social media before they purchase? RQ2: What are the differences among young students between customer experiences in social media platforms and customer experiences through physical interaction? RQ3: Which changes has social media brought among the young students in different stages of their decision making? 1.3: Research hypothesis RQ1: there are no ways to which young students attend, process, and select the information provided through social media before they purchase. RQ2: there are no any differences among young students between customer experiences in social media platforms and customer experiences through physical interaction? RQ3: there are no changes that social media brought among the young students in different stages of their decision making? 2. LITERATURE REVIEW 2.1 Introduction The resolve of this chapter is intended to present a review of other previously conducted research and literature on social media and consumer behavior. This section will also consist an effective understanding the consumer behavior. It will also consist if an understanding of consumer and how such behavior takes place within the digital environment and the ways through which digital inclusive may influence the buying behavior. The technological interactions through the use of social media the main factors that influence consumer purchase decisions will be explained where different buying stages shall be evaluated. 2.2 The Process of Attending, Processing and Selecting the Information Yogesh, and Yesha, (2014). Argue that customers have different but unique ways in which they attend, process, and select the information organizations and marketers present to them through social media. Consumer behavior has been discussed as a psychological method of both the decision-making process and physical action. Alsubagh (2015) has established that there are several activities that occur before the customer purchases and others that occur after the purchase is completed. His research continues to observe that consumers have a tendency of looking at the habits and behaviors of their peers before making a decision to purchase. He surveyed 150 participants who are 18 years and older who were asked to name firms they liked on the social networking site Facebook (Alsubagh, 2015). Similarly, Gros (2012) has extensively discussed consumers’ purchasing decision-making process theories, and models and the influence social media has on various stages of the consumer purchasing decision-making process. According to the findings of this study, customers have needs which are triggered by both the internal and external stimuli. My study will look at international students who are between 21-25 years old. According to Gros, (2012), social media has the power to trigger these needs through the adverts placed on social media platforms, including Facebook and YouTube among others. The researcher has continued to observe that every time a person clicks the ‘like’ button, that like will appear on the feeds of all his/her friends. As such, there are some friends whose purchase decision will be influenced by that ‘like.’ Therefore, Alsubagh’s (2015) and Gros’s (2012) studies appear to have similar findings. First, Alsubagh’s study has there are activities that happen prior to making the purchase decision. The ‘like’ activity represents the first activity among many others that follow before the consumer decides to purchase a product or service. Both Alsubagh’s study and Gros’s study are relevant to the present study because their conclusions are very insightful. 2.3 Social Media Purchasing experiences versus in-store Purchasing experience The purchasing behavior of young students is considered to be the foundation to the eventual purchasing activity. Rassega, Troisi, Torre, Cusino, Santoro and Prudente’s (2015) article have discussed consumer purchasing behaviour as a popular marketing topic. This research study has divided purchasing behavior into four steps: problem identification, information search, alternative evaluation, purchasing decision, and post-purchase behavior. This discussion on the steps involved in consumer’s purchasing behavior seems to compliment or support the proposition provided by Alsubagh’s (2015) study that there are several activities that happen before making the purchase decision by the consumer. The findings of the former research study advance the proposition that purchasing decisions are influenced by a complex combination of internal and external influences. This study is relevant to the present research because social media represents one of the external factors influencing the consumers’ buying behaviors. Some of the most important factors identified by Rassega’s et al.’s study are the group membership and social networks, representing the group in which social media falls. Both Alsubagh’s study and Rassega et al.’s study are relevant to the present study because their conclusions are very insightful. 2.4 Changes by social media to different purchase decision stages Jeddi, Atefi, Jalali, Poureisa & Haghi (2013) provide the most comprehensive discussion about consumer behavior and consumer purchase decision process. The authors indicate that different steps within the purchase decision process have their own different complexities. However, one of the most important representing the strength of this article is the observation that a consumer tries to make his/her buying process simple through trusting his/her peers and loyalty to the brand. Here, people buy things based on other people experience with the brand where they are given tips on a given commondy, making them desire to use the product. However, other people experience with a brand may not necessarily be assumed that it will provide the same experience with other persons. This represents the strongest point because social media networks are made up of networks of friends; therefore, it social media represents one of the most powerful tools in the purchase decision process. The propositions made in this article compliment the findings by Gros (2012) that social media influences the purchase decision process. Similarly, Yogesh & Yesha (2014) have extensively investigated the influence of social media on the consumer purchase decision process. Similar to Jeddi et al.’s study, Yogesh & Yesha have examined the five stages involved in the purchase decision process. 2.5 Social Groups Based on an argument made by Moore, et al., (2002), any other group of people, consumers are known to share information in a continuous manner with people close to them. Such information is shared in the small available groups such as family, co-workers, and friends. Additionally, information is also shared with the secondary groups that people belong to; they include the professional and religious groups that involve less interaction. The information gathered from such groups have a direct influence on consumer behaviors and decision-making attitudes (Moore, 2002). According to Kotler, et al., (2009), within a group, there are people who have leader roles where they are required to offer information and advice based on their expertise, opinion, and experience. In a situation where they gave professional information, people are more likely to follow their advice hence having a high hand in influencing people buying intentions. Consumers may also have a belief about a given market in a situation where they may require a knowledgeable advice about a product or product expertise. Since leaders have a high role and major influencing abilities on people, it is important for such people to ensure they reach to the opinion of leaders as highly information sources within the buying process. Connections created through the use of social media platforms such as twitter and facebook and provision of sponsorship in popular marketing blogs that will communicate based on their hobbies and interests (Kotler, et al., 2009). Kotler, et al., (2009) argues that a family unit is the most significant consumer buying reference group for many people. This is mainly because people tend to meet their family members more often and hence they are influenced by such people. Moreover, parents have a high influence on their children’s buying decisions when buying electronics and other expensive things. This is because children are through to have a wider knowledge of what they buy. 2.6 Culture and Consumer Psychology Peter, & Grunert, (1999) conducted a research and found out that in some parts of the world, culture is the primary factor of consumer wants and buying behaviors. Cultural norms and societal values also serve as major guidelines on how people buy and purchase things in a given community. Cultures has different smaller subcultures that are instrumental in the provision of socialization and specification for people who subscribe to such cultures. Different geographical regions are turning to be more culturally diverse where marketing campaigns are defining the target markets base don the cultural diversity (Peter, & Grunert, 1999). It is human nature to exhibit a form of social class that consists of members who share similar interest, values, and behaviors (Peter, & Grunert, 1999). Marketers understand the different characteristics of social classes since such classes tend to show distinct brand and product preferences in areas such as leisure, clothing automobiles and home furnishing. Based on for people to make an effective buying decision, they pass through a psychological process such as motivation, perception, memory, learning and influence on consumer purchase decisions (Peter, & Grunert, 1999). Methodology 3.1 Research Design and Justification The present research study used the qualitative method of data collection. Qualitative data collection in form of in-depth interviews were conducted because they allow the researcher to gain deep insight into the factors that motivate consumers among the young students to engage in social media networking and purchasing, consumer behaviours specific to social media networks. In addition, the researcher used questionnaires to collect data from students who were not be physically present for the interviews. The questionnaires also allow for time-saving because in-depth interviews are appropriate for the present study because it guides participants through concrete and abstract attributes, values, and benefits to provide a deep understanding of the factors that underlie social media engagements. The research aims to identify how social media influence buying decision among people. Since people have become more connected through the use of social media. 3.2 Research Limitations Due to limited time and financial constrains shall not be able to cover the entire number population, some people were not willing to respond to our questions and interviews. Additionally, others respondents failed to respond to our questionnaires claiming that we might disclose their information to their competitors, others failed to accept and answer our questionnaire because of organizational policy not to answer research question, lack of time and ignorance. Some respondents misplaced our questionnaire making it difficult for us to retrieve any information from them. 3.3 Sampling This study is a census, because it has led to precise information, exact information has been obtained and the information obtained from every unit has been necessary. 3.4 Research Methods As indicated above, the research method used was the in-depth interviews. In-depth interviews were selected because of the value they add to the issue being addressed. These interviews are purposely framed to guide the participants on the ladder of abstraction by asking the questions which are important to them. In an in-depth interview, the subsequent question result from the previous one, as the interview continues to delve deeper. There is no better tool to investigate the issue at hand than in-depth interviews because they delve and get to the depth of the issue. In-depth interviews were conducted with 10 study participants. In-depth interviews have their strength in that they allow the interview process to continue up to the point where the respondent can no longer provide any further information. The sample size is considered to be an ideal number because it will be easily manageable. Also, the researcher managed to exhaustively extract all the information required from every participants within the time allocated. In addition, the researcher sent questionnaires with 50 questions to the students. These questionnaires allowed the researcher an opportunity to collect data from a wide range of study participants who were not be physically present for in-depth interviews. 3.5 Research design The study utilised the interview method of data collection through questionnaires. In elucidating information from the respondents in both open ended and close ended questionnaire were administered on a drop and pick basis. Questionnaires were appropriate because they give options, saves time; convenient, free from the bias of the interviewer and the results obtained is dependable and reliable. 3.6 Data collection The data were collected using closed end questionnaires which were administered different respondents by the researchers, in a view to determine the impact of social media on customer buying habits. 3.7 Data analysis After the data was collected it was analysed using mean mode median and standard. This method shows the strength of the relationship between the variables that is, the use of accounting information system and its effectiveness in decision making. The main advantage of both methods is that they provide greater mathematical precision as they consider all observation and also provide useful measures of determining and assessing the accuracy of the estimated confidence interval. 3.8 Data presentation The collected data is presented in the form of bar graphs, tables and pie charts so as to bring out graphically the findings of the research. 3.9 Timeline Period Activity Week 1 to 3 Developing literature review Week 4 to 5 Questionnaire design and interview design Week 6 to 7 Collection and Data analysis Week 8 to 9 Final Preparation and submission of Research Proposal 3.10 Ethical Considerations Today, ethics in social media is receiving a great deal of attention because at the heart of consumer protectionism in the concern of consumer privacy. As such, one of the ethical issues that are likely to present during the study is student privacy. Most of the information that the study participants will provide will need to be protected. To address this issue, the researcher will obtain a written consent from every study participant and ensure that the participants remain anonymous to protect them from direct identification. The researcher did not provide personally identifiable information unless the participant gives him the consent to do it. Appendix 1. Section 1 4.1 Research Questionnaire Introduction This questionnaire was conducted by students who studying at XXX College. The aim of this questionnaire was to understand how and why the social media has influenced the students’ habits. This questionnaire should take each participant 5 minutes approximately. If you have any questions, please contact me. Thank you for your time and support. Signature: ______________________ 4.2 Questionnaire Tick or answer where applicable (√) 1. What is your nationality? ______________________ 2. What is your gender? a) Female b) Male 3. What is your age? a) 16 to 20 b) 21 to 25 c) 26 to 30 d) Above 30 4. What level of programme are you on in College? a) Preparatory b) Foundation c) Pre-Masters d) Others (Please Specify: _____________________________ ) Section 2 5. In a typical day, how likely are you to use social media? a) Extremely likely b) Very likely c) Moderately likely d) Slightly likely e) Not at all likely 6. If using Social networking Sites, which of these sites are you mostly on? a) Instagram b) Facebook c) WeChat d) Weibo e) Others (Please Specify: __________________________) 7. When you're on professional networking websites, about how much of your time do you spend posting updates about yourself? a) All of it b) Most of it c) About half of it d) Some of it e) None of it 8. Which kind of information do you like the best on the social media? a) Political b) Economic c) Entertainment d) Advertisement e) Others (Please Specify: _____________________________) 9. When you're on professional networking websites, how often are affected by someone’s shopping experience? a) Often b) Sometimes c) Rarely 10. When you consider buying something, will you search some information on the social media? a) Often b) Sometimes c) Rarely 11. How many friends do you already have on your social media? a) 300 12. In your opinion, how do you rank factors below of the social media that are important to you? Please rank accordingly: ____________________ a) Get information b) Make new friends c) Communication d) Kill time 15. Which of the following are the most frequently you normally do approach the Internet? a) Play the game b) Watch movie/TV series c) Shopping d) Use social media e) Others (Please Specify:________________________) 16. What kind of social media would affect you when buying things? a) Celebrity recommendation b) The Ads keep popping up attracts me c) Blogger or follower’s recommendation d) Friend's recommendation 15. What sources of information do you find most trustworthy/convincing? a) Recommendations given orally b) Images sent via social media c) Information sent via traditional media 17. Is customer experience in social media platforms similar to customer experience through physical interactions? a. Yes b. No 4.3 Questionnaire results re2. What is your gender? Options Subtotal % a) Female 19 63.33% b) Male 11 36.67% c) Other 0 0% Participant 30 3. What is your age? Options Subtotal % a) 16 to 20 3 10% b) 21 to 25 16 53.33% c) 26 to 30 9 30% d) Above 30 2 6.67% Participant 30 4. What level of programme are you on? Options Subtotal % a) Preparatory 0 0% b) Foundation 3 10% c) Pre-Masters 27 90% d) Others (Please Specify: _____________________________ ) 0 0% Participant 30 5. In a typical day, how likely are you to use social media? Options subtotal % a) Extremely likely 22 73.33% b) Moderately likely 5 16.67% c) Not at all likely 3 10% Participant 30 6. If using professional Social networking Sites, which of these sites are you mostly on? Options subtotal % a) Instagram 7 23.33% b) Facebook 4 13.33% c) WeChat 11 36.67% d) Weibo 1 3.33% e) Others (Please Specify: ) 7 23.33% Participant 30 7. When you're on professional networking websites, about how much of your time do you spend posting updates about yourself? Options subtotal % a) Most of it 3 10% b) Some of it 19 63.33% c) None of it 8 26.67% Participant 30 8. Which kind of information does you like the best on the social media? Options subtotal % a) political 3 10% b) economic 2 6.67% c) entertainment 22 73.33% d) advertisement 0 0% e) Others (Please Specify: ) 3 10% Participant 30 9. When you're on professional networking websites, how often are affected by someone’s shopping experience? Options subtotal % a) often 8 26.67% b) sometimes 13 43.33% c) rarely 9 30% Participant 30 10. When you consider buying something, will you search some information on the social media? Options subtotal % a) Often 13 43.33% b) Sometimes 13 43.33% c) Rarely 4 13.33% Participant 30 11. How many friends do you already have on your social media? Options subtotal % a) 300 20 66.67% Participant 30 12. In your opinion, how do you rank factors below of the social media that are important to you? Please rank accordingly: ____________________ Options average 3) communication 3.37 1) get information 2.9 4) kill time 1.8 2) make new friends 1.73 13. Which of the following are the most frequently you normally do approach the Internet? Options subtotal % a) Play the game 1 3.33% b) Watch movie/TV series 5 16.67% c) Shopping 2 6.67% d) Use social media 22 73.33% e) Others (Please Specify :) 0 0% Participant 30 14. What kind of social media would affect you when buying things? Options subtotal % a) celebrity recommendation 3 10% b) the Ads keep popping up attracts me 0 0% c) blogger or follower’s recommendation 11 36.67% d) friends recommendation 16 53.33% Participant 30 15. What sources of information do you find most trustworthy/convincing? Options subtotal % a) Recommendations given orally 5 16.67% b) Images sent via social media 21 70% c) Information sent via traditional media 4 13.33% Participant 30 Findings From the results there are more females than males where information also came from people within their middle age where the majority age was from 21 to 30 years. In today’s world, people yearn to be the best in almost every life aspect. Therefore, based on this study, the level of program that the people are in is the pre-master. Additionally, the technological use of the internet and social media has increased at an alarming rate. People are more prone to log in into social media. Moreover, the age bracket is characterised by the need to socialise and communicate with others which provides high affinity to people logging into social media platforms. Here, we find out that weChat is more preferred by most persons. Due to the need of diversification, only some of the respondent’s time is used in the perusal and updating of social network sites. People visit these sites mostly for their personal entertainment videos. Most people consider searching information on social media before making the buying decision on any piece expected. Since this is a social media platform, people have more than 300 friends, the more friends one has the more they’re likely to get more information. Most people rank communication and a source of information as people largely use the internet for social media engagements. Blogger, friends and followers recommendations are the identified as the most reliable source of information for people willing to buy things. Additionally, people rely largely on the images sent through the use of social media as they offer evidence to the buyers that influence their buying decision Discussion . From the research that was conducted, it was apparent that females were the majority respondents; this is because females are identified as the caretakers and persons who are responsible for their families in most family decision making. Therefore, there are largely involved in the buying decisions and actual buying. The This is the age bracket where decisions are made. Within this age, it is possible to influence others and also made decisions based on the information available. Therefore, the age group is composed of informative and reliable persons. The pre-masters are largely more interested in the internet based programmes where most people are extremely likely to visit social media platform. Most people where they are free, they make it a habit to log into their social media platform as a source of entertainment. There is an even distribution of people in various social media platform; people are more interested in platforms that provide all-inclusive services such as posting comments and picture and for messaging purposes. People need to work, internet is largely used as a source of entertainment, and this makes the users to visit the internet only when they got free time. It is human nature for people to seek entertainment from every available source, social media and the internet forms a good source of information. Since humans are social beings, they depend on information from other people in making decisions. This explains the high percentage in influence on the buying decision on humans. Moreover, such people will highly search information on the social media. The more friends one has on social media platform the more information and confirmation reliability such information becomes. Reflection The study explains that the social media has a large impact on how consumer buys products from stores. High percentage of people finds social media as a source of entertainment and information. The information however should be from reliable sources such as the bloggers, friends or from celebrities. However, people shy from trusting celebrities since they are used as advertising medium. Social media is also used as a form of communication and information gathering tools since people can offer their own experience on a variety of products that may be sold or advertised in the social media platform. Since any person can post anything they prefer on the social media platform, people tend to lean on the side of images sent through the social media platform as they provide an element of evident that acts as a backup to the information given. 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