THE EFFECT OF SOCIAL MEDIA ON CONSUMERS BUYING BEHAVIOUR

THE EFFECT OF SOCIAL MEDIA ON CONSUMERS BUYING BEHAVIOUR

Abstract

This study examined the social media advertising and purchasing behavior of Babcock College students.

This study used a survey design and targeted sampling techniques to select 450 of her students from all faculties. A well-structured questionnaire that was judged to be valid and reliable was used to collect data from the respondents. Data obtained from administering questionnaires were analyzed using Pearson’s correlation analysis.

The results showed a positive and significant association between social media channels and consumption patterns (r=0.772; p<0.05). Social media awareness and referrals (r=.896; p<0.05).Social media communication and Purchase decision making (r=0.772; p<0.05). The study concluded that social media advertising has a significant effect on buying behaviour of Babcock University undergraduate students.

The study concludes that; Companies should perform a comprehensive online market research to study the market for effective social media decision and strategy to later improve manufacturing sales by satisfying their consumers; Marketing and sales managers should get sufficient training on the latest social media used by most consumers which will help them set effective relationship that would increase their custoomer interest and the sales of companies; Marketing and sales managers should employ well thought out social media strategies that would help them improve on sales and their competitiveness; Companies to reduce the perceived risk consumers have on them by being more open and fast in terms of providing information, answering queries, solving problems for consumers.

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The advancement in the internet in recent years has increased the options available to businesses today; the social media platforms being a good example (Boulianne, 2009). It is no secret that the general availability of the internet has given individuals the opportunity to use online platforms as mediums of communication, from email to Twitter and Facebook, which has led to business interactions without the need for physical meetings (Picard & Robert, 2011). Moreover, as the Internet has grown, social media platforms have become an important communication channel. The online world has become a new means of social communication that connects people to various online communities. Paquette (2013) calculates that the social media community has grown to her over 12.5% ​​of the world’s total population. It provides another communication channel for today’s various companies and brands.

The term social media can be defined as a set of tools and services that allow users to interact directly online. Social media are web-based services, also known as “social networking sites” (Miller, 2016). Social media refers to networks of connections and communication between various gatherings and people (Kaplan, 2010). Stelzner (2016) defined social media as a platform focused concept of the literate web. It’s where audiences and users go beyond passively browsing web content and actually contribute to it. Simply put, social media includes anything that uses the Internet to facilitate conversation, most often in the form of social networking sites, blogs and wikis (Celine, 2012). Additionally, Chaffey (2016) describes social networking sites as online that allow users to create and modify public or semi-private profiles, collect lists of connections, and view lists of connections and other users’ die services. defined as a service. Get Social Media (SM).

Furthermore, Social networking sites have taken centre-stage in the development of e-commerce in the current environment where consumers make social connections and participate in cyberspace (Miller, 2010). Similarly, social media offers different values to firms, such as enhanced brand popularity, facilitating word-of-mouth communication, increasing sales, sharing information in a business context and generating social support for consumers (Ali, Ballantine & Stephenson, 2011). In addition, the networking of individuals through social media provides shared values, leading to a positive impact on trust (Wu, Chen &Chung, 2010). Today, with the expansion of social media and social networking sites (SNSs), a study of consumer behaviour on these platforms is a research agenda because social media is likely to develop marketing strategies in firms that will affect the customers’ intention to buy their products and services. Therefore, this research will aim to examine how social media marketing strategies will affect consumer buying behavior. 1.2 Problem Description

The advent of the Internet has changed not only the way businesses advertise their products and services, but also the communication channels between businesses and their customers (Miller, 2010). As a result, the advertising focus of some organizations has shifted from traditional mass media advertising styles to more digital online approaches. Social media is he one of the digital platforms that businesses can utilize to sell their products. Despite the fact that social media marketing is rapidly advancing in the global marketplace, there are studies that question the effectiveness of social media as a marketing tool to influence consumer behavior (DiStaso, McCorkindale, and Wright, 2011).

Additionally, there are studies that show that regular mass media channels are starting to lose their audience. According to Hutton and Fosdick (2017), viewership among young viewers is declining by 13% each year. In addition, Boulianne (2015) found that viewership among 4-15 year olds decreased by 22% and that among 16-34 year olds decreased by 15%. This change is being driven by the rise of online media content and social media channels such as Facebook, Twitter, YouTube and Instagram. Many scholars (Bond, Farriss & Jones, 2009; Kramer, Marlow, Settle & Fowler, 2012; Picard, 2011) have therefore suggested that the use of mass media channels is not an effective platform for marketing products and services. doing. However, a dilemma remains as to whether social media channels are more effective and, if so, whether they significantly influence consumer behavior.

In addition, businesses’ use of social media channels provides a platform for spreading awareness of old and new products and services among consumers. According to Furlow (2016), 95% of online adults aged 18-34 are most likely to follow brands through social media. While this is great, there are still questions about how effectively social media awareness can trigger consumer recommendations and product testing.

Additionally, one of the benefits that social media offers businesses today is the ability to connect personally with customers and consumers. Today, social media her messenger allows businesses and their customers to interact one-on-one with her, giving businesses personal access to their customers’ lifestyles and product perceptions. rice field. According to Jahn & Kunz (2016), he 33% of social media users prefer to reach out to brands via social media over the phone. This shows that social media is rapidly becoming an effective customer service tool. However, you need to understand whether this communication strategy will persuade your customers and consumers to purchase your product or service repeatedly.

With this in mind, this study should be conducted to determine the extent to which social media influences the purchasing behavior of Babcock College students.

1.3 Purpose of the survey

The main purpose of this study is to examine the impact of social media on consumer purchasing behavior. Other specific goals are:

1. A study of the impact of social media channels on the consumer behavior of Babcock College students.

2. Establish a relationship between social media visibility and Babcock College recommendations. 3. Determine the impact of social media communications on the purchasing decisions of Babcock College students.

1.4 Research question

Research should attempt to answer the following questions:

1. How do social media channels affect the consumer behavior of Babcock College students?

2. To what extent has social media visibility influenced student endorsements at Babcock College?

3. How did social media communications influence the purchasing decisions of Babcock College students?

1.5 Research hypothesis

The following hypotheses are formulated for testing.

H0(1):
Social media channels do not influence the spending behavior of Babcock College students.

H0(2):
Social Media Awareness Does Not Significantly Influence Recommendations

H0(3):
Communication via social media does not significantly influence the purchasing decisions of Babcock College students.

1.6 Operationalization of variables

The variables assumed in this study are:
Social media and consumer buying behavior. This study seeks to examine the impact of social media. Independent variable, dependent variable. consumer purchasing behavior.

Therefore, variables in this study are manipulated as follows.

Y = f(X)

Y = Consumer buying behavior

X = social media influence

where Y = dependent variable

X = independent variable

y = f(x1,x2,x3…xn)

x1 = social media channel

x2 = social media awareness

x3=social media communication

y = (y1, y2, y3)

y1 = consumption pattern

y2 = reference

y3 = purchase decision

y = f(x1) __________________ (1)

y = f(x2) __________________ (2)

y = f(x3) __________________ (3)

This study will focus on equation (4) above.

Based on regression,

y1 = α0 + β1×1 + μ…. (1)

y2 = α0 + β2×2 + μ…. (2)

y3 = α0 + β3×3 + μ…. (3)

where α is a constant in the equation, β is the coefficient of the independent variable X, and μ is the error or probability term in the equation.

1.7 Scope of investigation

This study focuses on the impact of social media platforms on the purchasing behavior of Babcock College students. The target group is her 9239 students at Babcock College. The survey sample size was 383 students, which was achieved using the Yard formula. In this study, we apply a simple random sampling technique while analyzing the data using regression analysis.

The geographic location of the study is Babcock University, Ilichan Remo, Ogun State. Finally, the survey will be conducted between September 2017 and April 2018 (8 months).

1.8 Validity of research

This study is important for the management of business organizations as it shows the importance of authentic social media presence aimed at convincing consumers of product quality.

The study will help the industry by helping them understand the importance of marketing via social media sites and helping them build consumer confidence about what drives their tastes before purchasing a product. It is important. This increases brand loyalty and increases profitability.

The investigation will help the government to scrutinize regulators. Regulators should continuously review organizational practices online for unethical behavior. The study will help the government address the problem of substandard, counterfeit and adulterated goods in the Nigerian consumer market.

The study benefits society as it educates consumers about the metrics that influence consumer choices, especially the media they use and the influence of their online followers on their preferences and preferences when purchasing products. The research also helps consumers understand the need to consider satisfaction-related benefits and needs before purchasing a product.

1.9 Definition of Operational Terms

consumer:
Consumers are people who buy products and services from manufacturers. (Business Dictionary, 2017)

consumer behavior

The study of how, where, when and why people buy, use and dispose of products and services. (Business Dictionary, 2017)

consumer buying behavior

The process by which individuals seek, select, purchase, use and dispose of goods and services to satisfy their needs and desires (Hershey & Blanchard, 2017).

consumer choice

The process by which consumers identify their needs, gather information, evaluate alternatives and make purchasing decisions (Hershey & Blanchard, 2017)

Social media

Internet or mobile phone-based applications and tools used to exchange information between people. This includes all aspects of blogs, forums, and interactive presences that allow individuals to engage in frequent conversations (Hershey & Blanchard, 2017).

economic factor

A look at how consumers’ disposable income and other financial resources influence purchasing behavior (Hershey & Blanchard, 2017).

sociocultural factors

A set of beliefs, habits, conventions, and behaviors that exist within a group (Hershey & Blanchard, 2017)