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IMPACT OF SOCIAL MEDIA ON CONSUMER BEHAVIOUR

CHAPTER ONE

INTRODUCTION

BACKGROUND TO THE STUDY

New technical breakthroughs can have a significant impact on businesses by changing the social environment and accelerating information transfer and the emergence of new ideas. (Kling and colleagues, 2005). Social media will be useful as an example of a new technical breakthrough that is having a significant impact in today’s organizations. Previously, social media-inspired innovations were considered a chapter. However, time has revealed that to be incorrect. We’ve witnessed how these new communal technologies are transforming the world on a daily basis, offering organizations fresh hope for outcomes that were previously unthinkable. Most organizations nowadays are primarily interested in implementing social media into their business structures, but they lack a thorough understanding of what social media is all about. They also lack a clear means of determining the benefits that these technologies can provide. According to a survey conducted by McKinsey and Company in 2009, many firms were able to gain from each other through the effective use of social media in ways such as sharing ideas, improving communication, and improving the workplace environment. Because an increasing number of organizations are endorsing and leveraging the different opportunities in social media, the value that social media offers to organizations is enormous. Globalization, according to Hill (2009), is a shift toward a more unified and interdependent economy that has historically merged distinct national marketplaces into one massive global marketplace. During the crisis that began in 2007, the global market place was swamped by changes in exchange rates, consumer purchasing behavior, and inflation, according to the Economic Intelligence Unit (2009). As a result of these economic trends, businesses have been forced to rethink their business strategies in order to better express their brands. According to Davis (2001), a company’s brand is one of its most valuable assets, implying that today’s businesses must recognize the importance of capitalizing on their brand. As the number of recessions has risen in recent years, it has become increasingly important for businesses to keep an open and honest line of communication while still maintaining a positive image in a cost-effective manner (Unit for Economic Intelligence, 2009). During the recession, social media marketing was a prominent method for businesses to express their branding. Some of these mediums include online electronic media, which promotes online end user interaction, response, consultation, connectivity, and networking (Mayfield, 2008). Twitter, Facebook, YouTube, LinkedIn, and other dynamic social media channels are some of the dynamic platforms that have helped create online rapport (Golden, 2011). It is a relatively low-cost marketing pattern that allows firms to interact direct end-users via their relationships (Heinlein and Kaplan, 2010).  Consumers influence other customers, and brands have a significant impact on customer choice. These series of events have an impact on repurchases, as well as future earnings and long-term organizational continuity (Oliveira and Sullivan, 2003). As a result, a prominent brand can often impact a consumer’s purchasing decisions. This value is created through creating demand (via repurchases) and securing the organization’s future profitability (Sullivan and Oliveira, 2003). As a result, social media marketing provides communication opportunities and relies on novel and unusual thought processes (Heinlein and Kaplan, 2010; Kweskin, 2008). This improves the product and brand experience of customers.

PROBLEM STATEMENT

The introduction of the Internet and public acceptance of it has changed the way businesses market their services and products, as well as the channels of contact between them and their customers. This can be observed in how they sell and communicate their brands and products these days, which has become a difficult project. Marketing ads and promotional events can be overwhelming to customers. Customers’ sensitivity to become enthused about promotional events is waning, and consumers are beginning to oppose some companies’ marketing efforts.

The traditional mass media advertising strategy, which includes commercials on television, radio jingles, and advertisements in print formats such as newspapers and magazines, as well as billboard placements, is essentially the promotional focus of some businesses. It is now well documented that, as the Internet spreads rapidly throughout the global economy, traditional mass media’s effectiveness is rapidly dwindling.

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