THE EFFECT OF SOCIAL MEDIA ON CONSUMER BUYING DECISION PROCESS A

CASE STUDY OF CAPITAL SHOPPER’S SUPERMARKET NAKAWA BRANCH

BY

LUGONVU ALLAN
 CHAPTER ONE
1.0 Introduction
This chapter represents the background of the study, problem statement, purpose of the
study,

1.1 Background of the Study

In today’s technology driven world, social media has become an avenue where retailers
can extend their marketing campaigns to a wider range of consumers. Evans, Jamal and
Foxall (2009) observe that the growth of social media have become important
communication channels and virtual communities have emerged that may never meet in
the physical world but nevertheless can affect behavior including purchasing decisions.

Social media is commonly associated with social networks such as Facebook, My Space,
LinkedIn (Boyd & Ellison, 2007). Additionally, social media has recently outpaced email
as the most popular online activity and has enabled consumers to connect with others by
sharing information, opinions and thoughts about products and brands.

Kaplan and Haenlein (2010) state that the concept of social media is top of the agenda for
many business executives today, so firms try to identify ways in which they can make
profitable use of applications such as Facebook, YouTube, Twitter and Linkedln Each
social media application usually attracts a certain group of people and firms should be
active wherever their customers are present (Kaplan and Haenlein, 2010) Thus, social
media can be an important marketing tool for companies to engage with their customers
In a competitive environment, businesses can use social media as a communications tool
to attract their customers and reach their target group with low costs and effective
messages.

Companies have considered entire departments devoted to the enterprise and control of
social media inside their organizational structures (Belch & Belch, 2003). Also Mangold
and Faulds (2009) further argues that because of global competition, businesses have
gone beyond the traditional boundaries of purchasing, selling or other commercial
transactions and consequently, the boundaries of national markets have disappeared and
become indistinct. Therefore, social media has become very important tool regarding the
 effective dissemination of information. However, more recently, concern has been raised
over the influences of these media on consumption habits and their possible use in the
advancement of communication and marketing strategies (Belch & Belch, 2003).

With the widespread proliferation and usage of Social Media across the different aspects
of life in both our social and professional capacities, it is extremely important for
marketers to understand the components of the social media environment to successfully
communicate with the youth who are actively utilizing this new, globally complex
platform. Consumers have three main motives for using the Internet as a medium,
namely, information, entertainment, and social aspects (Heinonen, 2011).

Supermarkets in Uganda have generally been enjoying tremendous growth in recent

years. In the same vein, the environment has continually changed bringing more and
more challenges to the players. This can be witnessed in supermarket like capital
shoppers where various changes have been witnessed in the legal environment,
competitive field, consumer needs and also in the area of technology. To improve
competitiveness, capital shopper’s supermarket needs to adopt the
In order for organizations such as capital shoppers to be more completive is important to
understand how young online consumers perceive the factors that influence their
attitudes, as this determines social media marketing communications content, and also
assist in improving the effectiveness of online strategies of various social media platform
other than use of facebook only in order to influence a positive buying behavior.

1.2 Problem Statement

Over the past five years, the operating landscape of capital shoppers supermarket has
been witnessed by noticeable changes due to macro- and micro-environmental forces.
(Watchravesringkan, 2010). These changes range from technological advancement and a
saturated domestic market, increasingly demanding and sophisticated consumers, as well
as escalating competition. Rogers, (2003) notes that social media has created a new
platform to provide social and viral capabilities for consumers by increasing their
participation and interaction on the Web. Supermarkets today are adopting new
technologies which have done away with barriers and boundaries that used to
 characterize personal interactions and communication within the public realm. However a
few like capital shoppers supermarket lack a regulatory policy and has failed to realize
the importance of social media marketing promoting positive customer buying behavior .
This has made the supermarket loose to about 3% of its customers to other supermarkets
like Turkeys and Shoprite that have embarked on social media marketing in order to
improve on customer loyalty and hence retain them. (Business Daily, Tuesday July 27 th
2010). According to the 2018, annual sales report of capital shoppers supermarket, there
has been a limit on the use of different platforms of social media marketing like twitter
and instagram by the management which has created little awareness about the available
products to those who mostly use social media especially students around Nakawa
institutions like MUBS, UICT, MTAC and Nakawa Vocational institute whose students
relay on the use of social media even when purchasing some items. This has greatly
affected the buying decision of these students (youth) and some have resorted to buying
from Shoprite Lugogo instead of capital shopers super market since Shoprite lugogo
adopted the use of many social media platforms like whatsapp, instagram, facebook
among other. Due to this competition capital shoppers has registered a fall in its annual
sales 3% in performance. This has forced the researcher to carry out a research on the
social media on consumer buying decision process of capital shopper’s supermarket.

1.3 Purpose of the study

The main aim of the study is to establish the effect of social media on consumer buying
decision process of capital shopper’s supermarket.

1.4 Objectives of the Study

i. To identify the different types of social media marketing used by capital shopper’s
supermarket.
ii. To establish social, individual and cultural factors influence that influence consumer
behaviour
iii. To find out the relationship between social media on consumer buying decision process
of capital shopper’s supermarket.
1.5 Research Questions.
iv. Which are the different types of social media marketing used by capital shopper’s
supermarket.
v. what social, individual and cultural factors influence consumer behaviour at capital
shopper’s supermarket.
i. What is the relationship between Social on Consumer Buying Decision Process.

1.6 Scope of the study

1.6.1 Conceptual scope
The study will concentrate on establishing the impact of Social Media (independent
variable) on Consumer Buying Decision Process (dependent variable) in capital
shopper’s supermarket

1.6.2 Geographical scope

This research will be carried out at Capital Shopper’s Supermarket Nakawa Branch
located on Port Bell Road, Nakawa, Kampala.

1.6.3 Time scope

The research will be carried out for the period of two months that is to say April to June
2019.

1.7 Significance of the study

i. The research acts as a valuable tool for academicians, institutions and other individuals
who would want to learn more about the impact of social media on Consumer Buying
Decision Process
ii. The findings of the research can assist Capital Shopper’s Supermarket to know which
social media platforms can influence on Consumer Buying Decision Process
iii. The study can improve the researcher’s scope of understanding of social media on the
entire public.
iv. The research can also enable the researcher be awarded a bachelor’s degree in business
international business.
1.7 Structure of the report
Chapter one: Background
This chapter contains the back ground of the study, statement of the problem, purpose of
the study, objective of the study, research questions, scope of the study, significance of
the study as well as the conceptual frame work.
Chapter two; Literature review
This contains the review of the relevant literature that has been advance by different
authors in line with the topic under study.
Chapter three: Methodology
This chapter involves the description of how the study will be conducted that is the
research design, sampling design, population study, Sampling techniques, sources of
data, data collection techniques, data processing and analysis and limitations of the study.
Chapter Four:
Presentation, Analysis and Interpretations of Findings, This present the presentation,
analysis and interpretation of findings from the field study. The tools to be used for
analysis will include frequency distribution tables and percentages.
Chapter five:
This involves the introduction, summary of findings, conclusion and recommendations.