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1 INFLUENCE OF SOCIAL MEDIA ON THE PURCHASE DECISION OF A CONSUMER HEMA MALINI.S 1 Dr. V. THYAGARAJAN 2 1 Associate Professor, Department of Corporate Secretaryship (SS), Ethiraj College for Women, Chennai 8 2 Associate Professor, Department of Commerce (Aided), Pachaiyappa s College, Chennai 30 ABSTRACT Technology is an integral part of a man s life in the current scenario. The development of technologies broadly affects the standard of living and the organisation of economic activity. The growth of the technology has resulted in to a new arena called the social media. The growth of this media has been phenomenal over the past 15 years. This social media has resulted in a network called social network through which people communicate and interact with others. It has not only changed the communication aspect of the people but also their views about buying a product or even whether to buy or not to buy a product. This online social networking phenomenon has created a new type of consumers who are more interactive and engaged in communication with brands. The consumers in general before buying a product they look into the various factors of the product namely the cost, quality, longevity, utility and the other functions. But with the introduction of technology consumers gather more information about a product through social media based on the users feedback about the product. This significant information obtained by consumers from interpersonal sources influences the consumer decision making has been well recognized by the manufacturers and marketers. KEYWORD: Social media, Consumers, Purchase decision INTRODUCTION People use social media in their daily life for various reasons. Most of them attempt to maintain and stay connected with their friends, relatives, colleagues. Social media is of paramount importance to consumers who freely share their experience, opinions and rapidly spread information and opinions regarding products and services in their social networks comprised of friends, personal contacts and other acquaintances. Now comparing the price and quality of a product or products offered has become much easier with the help of online portals rather than the earlier days where people had to visit various shops to find where it is available economically. And also to know about the review of the product they need to wait for sometime till they have used or either a friend or a relative. Today s trend is that people can obtain anything at a click of a button similarly they also get to know the review of the product by the click of a button. This review expressed could be by the actual consumers who have used the product/ service through social networking pages, companies through their pages or various forums/ blogs by the observers of the product. These reviews act as information to set the mind of the consumer either to purchase or not to purchase a product. In this paper we study about the influence of social media on the purchase decision of a consumer. NEED FOR THE STUDY Social media is an informal form of communication for discussion of personal/ professional matters or products/ services. It is observed that people discuss about everything and anything in social media 7 editor.researchscripts@gmail.com

2 right from buying a pen till going for the best treatment. It is evident from this; social media has occupied an integral part of one s life. This discussion in social media has led to a change in the attitude, belief and knowledge of consumers of a product/ service. This is mainly because they receive first hand information about a product/ service and also they are in a position to interact with the user of the product/ service to get their realistic view. Another main advantage of social media is that it covers length and breadth of this world at the touch of a button enabling the consumer to get opinions from different parts of the world. This convenience of getting information by the consumer has made a consumer a well informed consumer even before he could buy the product. This advantage has led to this research to understand the influence of information shared through social on the purchase decision of a consumer. This paper is divided into three segments where the first segment comprises of a brief introduction of the topic along with the need for the study followed by the literature review of previous related studies and objectives of the research. The second segment consists of research methodology and data analysis. Finally, the conclusion of this study is given in the third segment. 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 (Kuruk and Krishnamurthy,2007). Therefore, social networks are defined to be websites which link millions of users from all over the world with same interests, views and hobbies. Blogs, YouTube, MySpace, Facebook are examples of social media that are popular among all level of consumers (Sin, et al., 2012). Users are using several online formats to communicate, (e.g., blogs, podcasts, social networks, bulletin boards, and wikis) to share ideas about a given product, service or brand and contact other consumers, who are seen as more objective information sources (Kozinets,2002). 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). The much higher level of efficiency of social media compared to other traditional communication channels prompted industry leaders to state that companies must participate in Facebook, Twitter, Myspace and others, in order to succeed in online environments (Kaplan and Haenlein, 2010). A study of Deloitte Touche USA revealed that 62% of US consumers read consumer generated online reviews and 98% of them find these reviews reliable enough; 80% of these consumers said that reading these reviews has affected their buying intentions (Industry statistics) (Pookulangaran, et al., 2011). Communication of brand/ company and users help create a favourable or less favourable image of other users who read information posted and consider them in the information or purchase. Interactivity with target brand in social media is perceived differently by consumers depending on the message they convey (Shin, 2008). The perceived risk of purchasing and how much money are willing to pay for a product also determines the user to think more about the quality and the utility of the product (Ioanas,2012). 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). 8 editor.researchscripts@gmail.com

3 Consumers use social networks in daily life for various reasons. Most of them want to maintain relationships with relatives or colleagues/ friends. Maintaining interpersonal connectivity between online users of a social media channel has benefits derived from establishing and maintaining contact with other people in a manner of giving social support, friendship, and intimacy (Utpal et al., 2004). These allow users to connect with peers by adding them to networks of friends, which facilitates communication, particularly among peer groups (Ahuja and Galvin 2003). Online groups exert a noticeable influence on the behavior and consumer buying intent and implicitly on the purchase decision. For example, social media websites provide a public forum that gives individual consumers their own voice, as well access to product information that facilitates their purchase decisions (Kozinets et al., 2010). RESEARCH OBJECTIVES To identify the most considered factor in a product by consumers at the time of making a purchase decision To identify the most sought after social media by online consumers To identify the attributes of social media in influencing the consumer decision RESEARCH METHODOLOGY In order to achieve the above objectives both quantitative and qualitative methods were employed to examine the influence of social media on the purchase decision of a consumer. Questionnaires were distributed to collect primary data. Secondary data was collected from books and online journals. This research is restricted only to the consumers of Chennai city. Random sampling technique was used for this study. 145 questionnaires were distributed. Snow ball sampling techniques were carried out for getting references. 135 questionnaires were returned, of which 120 completed questionnaires was taken up for further analysis. SPSS 15.0 was used for data analysis. Analysis was done by Friedman s Rank test, Descriptive Statistics and Percentage analysis. The conclusions of these tests are indicated below: Table 1. Ranking of the most sought after factor in a product by a consumer before buying the product Factors of a Product Mean Rank Rank Product Features Quality Design After Sales Service Price Brand From the above Table 1, on applying Friedman Rank Test, it is clear that the consumers check for the quality a product before buying the product as it has been ranked number 1 by the respondents. The features of a product are the second preferred factor they look into before buying a product. Price and the design of the product has gained the third and fourth rank respectively in the ranking with a very minimum difference in the mean, this discloses that the consumers look in to the price factor and design if they are satisfied with the quality. Brand and After Sales Service factors have secured the fifth and sixth rank respectively which proves that the consumers are not brand conscious as they have not considered the brand to be their primary focus. 9 editor.researchscripts@gmail.com

4 Table 2. Ranking of the Social Media most used by Online Consumers Social Media most Used Mean Rank Rank Facebook Company Forum Consumer Forum Blogs Seller's Site Blog You Tube Whatsapp / Viber From Table 2, it is evident that Whatsapp/ Viber is rated first which reveals the respondents prefer to use this mode of social media the most compared to others, followed by Facebook as the second most common social media they prefer to use. The next in rank are You Tube, Seller s Site Blog, Blogs, Consumer Forum and Company Forum. Table 3. Ranking of the Social Media which a consumer depend more for buying the product Social Media Mean Rank Rank Blogs Consumer Forums Company Forum Seller's Site Forum Social Networking Sites Friend/ Relative Recommendation The above Table 3 clearly disclose that, Friend/ Relative recommendation of a product is the source which a consumer trust more before buying a product followed by the views expressed in Social Networking Sites. Seller s Site Forum like Snap Deal, ebay, Flipkart where, the consumers express their views about a product below the description of each product is ranked as three by most of the respondents. Consumer Forums, Blogs and Company Forum respectively are the next preferred social media by consumers. Table 4. Ranking of the Attributes of Social Media which a Consumer depend more for buying the product Attributes of Social Media Mean Standard Deviation Opinions expressed by Friends/ Relative Consumers expressing personal experience Videos/ Pictures attract me Companies give true picture about their products Consumer forums give true picture editor.researchscripts@gmail.com

5 On the application of Descriptive Statistics in Table 4, it is found that of the five different attributes of Social Media the consumer depend more on the Opinions expressed by the Friend/ Relative as it has a high mean followed by Consumers expressing their personal experience. These two are considered to be the most dependent attribute as it has a mean value of above 3. Following these two attributes are Videos/ Pictures attract the consumers and Consumer Forums give true picture of a product are the next two attributes which a consumer depend up on. It is to be noted here that these two attributes differ in rank with a negligible difference of 0.02 which shows that consumers depend on these two factors almost equally. Companies give true picture of their products is the last attribute which the consumer depend before buying a product. In all the above attributes the Standard Deviation is less than 1 except for Companies give true picture of their products, this shows that there is not much deviation in the mean values as the respondents have all taken the same stand in ranking the different attributes. Thus, it is clear that consumers do depend not only on social media but also consider the various attributes of social media in making a purchase decision. Table 5. Factors which a Consumer check in Social Media before buying a Product and their Influence on Purchase Decision Factors Mean Standard Deviation Product Review Feature Comparison Reviews Influence Decision Believe the Reviews Express Feedback The above Table 5 discloses the factors which a consumer checks in social media before buying a product and its influence on the purchase decision. On applying Descriptive Statistics it is observed that Product Review by Consumers is the first factor which a consumer checks in social media as it has the high mean value, the next is Feature Comparison the given by the consumers. Believe the Reviews of the Consumers, Reviews Influence the Purchase Decision and Express their Personal Feedback are the next factors which they consider respectively. Table 6.Percentage of Opinions expressed in Social Media Influence the Purchase Decision of a Consumer Opinions expressed in Social Media influence the Purchase Decision of a Consumer No. of Respondents Percentage (%) Yes % No 7 6% Total editor.researchscripts@gmail.com

6 It is inferred from the above Table 6 that, a majority of 94% of the respondents believe in the views/ opinions expressed in the social media influences the purchase decision of a consumer whereas, only 6% of the respondents have disagreed the same. CONCLUSION From the survey results, data analysis and interpretation it is clear that the opinions/ views expressed in social media plays a significant role in influencing the purchase decision of a consumer. Friedman rank test clearly indicate that the Quality of a product is the main factor which a consumer checks before he buys a product followed by its Features and it also discloses the brand is the 5 th most important factor which a consumer consider followed by After sales service feature. This result also shows the confidence of the consumer, that is buying a quality product does not require any service after sales and this could be one of the reasons why After sales service is ranked last. It is also found that most of the respondents prefer Whatsapp/ Viber as the most frequently used social media followed by Facebook, YouTube, Seller s Site Blog, Blogs, Consumer Forum and lastly the Company Forum. From the results calculated above, it is evident that consumers depend more upon the Recommendations made by a Friend/ Relative in buying a product followed by the views expressed in Social Networking Sites. Descriptive Statistics results also clearly indicates that of the five attributes of social media the Opinions expressed by Friend/ Relative is widely accepted by the respondents, with a high rating of the same. Following this attribute is, Consumers expressing their personal experience is second most accepted. Descriptive Statistics also clearly confirm that Reviews expressed in social media influence the purchase decision of the consumer is strongly accepted, with a high rating of Product Review by a consumer before buying a product. The percentage analysis has revealed that a majority of 94% respondents have strongly believed that the opinions expressed in the social media influence the purchase decision of a consumer This study confirms that consumers are no longer attracted towards a product for its colour, advertisement or their favourite stars endorse the product. They are becoming more aware of the fancies and frills attached to a product during its advertisement or launch. This is possible because of the widespread advancement of technology which also has branched in social media. This medium of communication has been widely accepted in the world both by the young and the old as it is the fastest and instant communication medium. It has become ubiquitous in everyone s life. This media also shares reviews/ opinions/ views/ utility/ negative aspect of a product/ service. People come to know about the product in few minutes after its launch. Thanks to the social media users! On buying a product they immediately express their experience however it is good or bad to the other users. This in turn educates the other interested people who have the willingness to buy the product. Thus, the consumer today is well informed about a product even before he purchases the same by a click of a button/ swipe of a screen. REFERENCES Ahuja M. and Galvin J., (2003), Socialization in Virtual Groups, Journal of Management, 29 (2), Ekin Pehlivan, Funda Sarican and Pierre Berthon, 2011, Mining messages: Exploring 12 editor.researchscripts@gmail.com

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