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The Impact of Social Media To Customer Purchase Decision
The Impact of Social Media To Customer Purchase Decision
CHAPTER 1
INTRODUCTION
Social media marketing is no longer a new aspect, but still considering an evolving
topic in the field. The internet and especially social media have change how
engagement” while the Social Media is the tool used to communicate with mass
audience (Harshorn 2010). Social media has a tremendous impact on our culture, in
business, on the world-at-large. Social media is helping to create awareness and can
also be effective in driving repeat sales and also allow people to share content
There are two types of Social Media Users: Digital Natives and Digital Immigrants.
Digital Natives are generally born after the 1980’s and they are comfortable in the
digital age. However, digital Immigrants are the older crew, weren’t raised in a digital
platforms, Look book, to life streams to social networks and much more.
intentions and decisions and regarding the consumer’s behavior in the marketplace
when purchasing a product and this requires decision and the decision involves a
This research aims to assess the frequency at which the customers are social
impact on the purchase decision, all these questions will be answered through this
research paper.
This study determines the Impact of Social Media to Customer Purchase Decision,
Age
Gender
Occupation
2. What are the factors to consider in social media that can create impact to the
3. What kind of social networking does the customer use when purchasing a
Shopping Frequency
social media?
Objectives
The main objective of this study is to identify the impact of social media to customer
Theoretical Framework
only concerning with observable stimulus response behaviors, and states all
behaviors are learn through interaction with the environment. According John
Watson (1913) the behaviorist movement began which set out a number of
Types of Behaviorism
1. Methodological Behaviorism
control of behavior. The behavior of man, will all refinement and complexity,
2. Radical Behaviorism
According to B.F Skinner recognized the role of internal mental events. Radical
behaviorism accepts the view the organisms are born with innate behaviors and
Post-
Need
Purchase
Recognition
decision
Actual-
Information
Purchase
search
decision
Evaluation
of
Alternatives
This theory of Kotler’s is helping to know how the customers actually make buying
decision. The first step for the buying decision process is to have recognition. The
second step is the information search, in this stage the customers searches the
information about the product or services. The third step is to evaluate the
alternatives, after getting the required knowledge about the product, the customer
evaluates the various alternatives on the basis of the satisfying the power, quality
and features. The fourth step is to purchase decision, after evaluating the
alternatives the buys the suitable product. The last step is post purchase behavior,
Conceptual Framework
•Demographics
PROCESS • The Impact of
•Behavioral Profile Social Media to
Shopping Frequency • Survey
Shopping plan Decision Customer
Questionnaires
•Impact of using Social Purchase Decision
Media Application
INPUT OUTPUT
Operational Framework
Identify the
problem
Prepare a
Tally the
research
results
questionnaire
Hypothesis
This study is design to determine the impact of social media to customer purchase
decision.
purchase decision.
Consumers- This study will help the consumers to know how the social media can
Researchers- This study will help the Researchers to enhance the ability to do a
Future Researcher – This study will allow Future Researcher to benefit from this
This study focuses primarily on the impact of social media on purchasing decision of
customers with in San Pedro City Laguna. This study will be limited on the barangays
Definition of Terms
1. Behaviorism - the theory that human and animal behavior can be explained in
mental impression.
CHAPTER 2
Foreign Literature
Researchers and media experts have proposed various definitions for social media.
Kaplan and Haenlein (2010) give a general definition of social media in consideration
applications that build on the ideological and technological foundations of Web 2.0
and that allow the creation and exchange of User Generated Content (Kaplan &
Parr (2010) defines social media as the use of electronic and Internet tools for the
purpose of sharing and discussing information and experiences with other human
Jantsch (2008) considers social media as the use of technology combined with social
Dykeman (2008) regards social media as “the means for any person to: publish
digital, creative content; provide and obtain real-time feedback via online
The online encyclopedia wiki defines social media as media for social interaction,
using highly accessible and scalable publishing techniques. Social media use web-
based technologies to transform and broadcast media monologues into social media
dialogues. Despite all kinds of definitions, it is not hard to identify three fundamental
elements that support the existence and prosperity of social media that is content,
communities and Web 2.0. Without the technology, social media is just empty talk.
The Web 2.0 technology enables people to use various platforms to share, discuss
create value. From that point of view, communities, content and Web 2.0 are
Just as much as variety in social media definitions, there are also different kinds of
summarize some general types of social media in order to set boundaries between
is an online platform which people use to build social networks or social relationship
with other people who share similar personal or career interests, activities,
backgrounds or real-life connections. Just like the majority of social media platforms,
the connections made on social network sites are primarily based on user’s social
networks in real life and users are encouraged to provide real personal information.
In that sense, social networks sites along with other social media tools merely
provide platforms for real world friends to communicate in the virtual world.
Nevertheless, social network sites nowadays are far more than just platforms rather
it has gradually been integrated into people’s daily life. The original version of social
network sites dated back to 1995 where community such as classmates.com tried to
help people find back their old friends and school mates by having people’s email
addresses linked to each other. It was not until early 2000s, with the development of
user profile functions, social network sites entered the second stage and the new
generation of social network sites emerged and became popular soon (Taprial &
Kanwar, 2012, s. 18). The best examples are Friendster in 2002 and MySpace in 2003.
The real fever of social media sites started with the birth of Facebook founded by
Mark Zuckerberg and his colleagues in 2004. By the end of December 2013, it had
1.23 billion active users monthly worldwide. Almost all the basic functions of social
network sites can be found in Facebook and it keeps delighting people with new
2.2.2 Blogs
The term ‘blog’ appeared as both noun and verb in 1999 which is shortened form of
‘Web log’ (Andrew, 2009, s. 49). Blogs are online journals and it is most often
arranged in the chronological order containing text, data, images and other media
objects recorded and retrievable through a web browser. There are number of
features that distinguish blogs from portal website and other general websites. Blogs
tend to write in a personal tone and conversational style. There is usually a topic
before bloggers start to write. Blogs are flexible and extensive in the way that
bloggers can create links and make references from other sources which enable both
readers and bloggers track back while they are reading blogs. Blogs also allow
community groups. Bloggers and wikis are the most two popular blog platforms.
2.2.3 Wikis
structure directly from web browser. In a typical wiki, text is written using a
simplified markup language and often edited with the help of a rich-text editor. A
wiki is run using wiki software, otherwise known as a wiki engine. A wiki engine is a
type of content management system, but it differs from most other such systems,
including blog software, in that the content is created without any defined owner or
leader, and wikis have little inherent structure, allowing structure to emerge
2.2.4 Podcasts
Webster.com, 2014). Audio and video files are published on the internet that allows
users to subscribe to. The feature of subscription truly represents the sociability and
community characteristics of social media. People have long been able to upload
video and audio files on the internet, but with the subscription feature, each
individual is doing their own marketing by notifying subscribers as soon as they have
updates. This enables everyone to build their own audiences and communities which
is the basic formation of social media. Apple’s iTunes is the most widely used
podcast platform around the world. The podcast can be either listened to on the
2.2.5 Forums
The internet forum is also known as community bulletin board or message board.
The formation of forum starts with a group of people who share the same interests
or would like to discuss a specific topic. Forum can be considered as the longest form
of online social media. Not surprisingly, forum has a strong sense of community with
one or several administrators serve the role as moderators that regulate improper
posts on the forums. The discussion on the forum is called thread in which different
forums members participate for the purpose of online debate, enquiring advice or
seeking help, etc. The threads do not necessarily start by the administrator and
unlike blogs which is owned and managed by the bloggers, threads are started by
any members in the forums who want to discuss and share something with others
(Mayfield, 2008).
podcasts. It shares some common features from these two social media forms.
content such as photo, video, music and bookmarks (Mayfield, 2008). Examples of
(bookmarks).
2.2.7 Microblogs
is more than just a blog. It combines the basic elements of blogs with the functions
of instant messaging and social networking from other social media platforms.
Twitter is no doubt the dominant player in the micro-blog field with over 200 million
active users. Tweets are the messages send by users through various platforms
including twitter websites, mobile device applications and SMS. Messages are limited
to 140 characters which is the most obvious feature of ‘micro’ blog. Different users
treat twitter for different purpose but the fundamental aim is to simply keep in
touch with own networks and share thoughts or start conversation even though
With the mature of Web 2.0 technology, social media has reached almost everyone
around the world as long as you have electronic devices connected to Internet. It has
already been integrated into part of our daily life. Nevertheless, when people are
discussing the widely-circulated term social media, very few have truly understood
the essence of social media. Understanding the characteristics of social media is not
only important for individuals but also crucial for companies who want to compete in
the market. Consumers who have good command of social media skills and
perception of social media characteristics will make their life easier and bring
search, etc.). Companies employing social media as part of their marketing strategy
failure. Even though thousands of articles and blog posts have been discussing social
media from different aspects, there is quite little theoretical literature which
community and connectedness. Taprial and Kanwar (2012) identify five properties
that are more powerful and distinguish the social media from the traditional media.
summarized as follow:
2.4.1 Community
Community in social media share same features with other online and virtual
communities, which are formed based on people who share the same interests or
background. However, there are differences in which the network formed in social
media is often an extension of the network in the real world and trust in social media
2.4.2 Connectedness
integration in the sense that sites, resources, and people are connected through
2.4.3 Openness
Almost all the social media platforms are free to join and anyone can use social
2.4.4 Speed
One of the advantages of online social network compared with real life network is
opinions may disappear into thin air, online WOM spreads consistently results in
viral effect. Contents published on social media platforms are instantaneous and
are available to everyone in your network as soon as they are published. (Taprial &
Kanwar, 2012).
2.4.5 Accessibility
Like the traditional media which relies on technology and platforms to function, the
same applies to social media which is the product of web 2.0 technologies and user
2.4.6 Participation
Burgoon et al. (2000) defines participation as the extent to which two or more
participation and feedbacks. One party creates content and shares on the platform
to arouse the interest of the other party so that they will actively contribute and give
feedbacks. From this point of view, the line between media and audience becomes
of contents on the platforms and each individual’s identity is shifting all the time
(Mayfield, 2008).
2.4.7 Conversation
which means everyone becomes the source for communication. This means two-way
Foreign Studies
The study on consumer buying behavior based on purchase intention has been
developed in marketing for more than 20 years. One issue remains disputable is
forecast sales of existing consumer goods and services. The results proved that
sales trends.
deep into analysis of customer’s buying decision process which focuses on their
experiences in learning, choosing, using and even disposing of a product (Kotler et al.
2009). Marketers developed a stage model of buying decision process to simplify the
complexity of real-world situation and at the same time capture the core processes
and stages involved. Five key stages, which are problem recognition, information
are involved in the model. Marketing researchers generally posit purchase intention
in the phase of purchase decision. In this stage, consumers have already formed
preferences among various brands and ready to make the final purchase decisions.
However, according to Kotler et al. 2009, preferences and even purchase intentions
are not completely reliable predictors of purchase behavior. Two general factors may
somehow intervene between the purchase intention and the purchase decision.
They are attitudes of others and unanticipated situational factors. These two factors
are crucial in the conceptual model proposed in the next part even though they are
purchase a particular good or service in the future. But purchase intention comes
from behavioral science and evolves from the term intention. According to Fishbein
(1975, 1991), intention is the subjective probability that one perform a particular
action. The concept was then extended to purchase intention which described the
probability that consumers are willing to execute the buying action. Similar definition
has also been proposed by Dodds (1991), Grewal, Monroe and Krishnan (1998),
buy a specific product. Fandos & Flavian (2006) stated that purchase intention
to predict what products or brands consumers will buy next time when they do
shopping. Positive purchase intention not only indicates high probability of actual
the mechanism from different views and perspectives. At present, there are several
Local Literature
PH world’s No. 1 in terms of time spent on social media. The Philippines again
topped the world in terms of social media usage as the number of internet users in
the country hit 67 million people, according to a new report by London, United
Kingdom-based consultancy We Are Social. In its Digital 2018 report, which compiled
data from various third-party sources, We Are Social said Filipinos spent an average
internet users in the county. Another 10 million Filipinos were on Instagram, which is
owned by Facebook.
The Philippines was ahead in terms of social media usage in a list of 40 countries.
Least interested in social media were the Japanese, who spent an average of 48
minutes a day updating their Facebook status and posting pictures on Instagram.
Overall, Filipinos spent 9 hours and 29 minutes a day on the internet, based on the
2018 report.
This was the second-highest in the world after Thailand at 9 hours and 38 minutes.
Apart from social media, Filipinos used the internet to watch videos on YouTube and
The high usage comes as Filipinos still lagged behind most regional neighbors and
the global average in terms of internet speed. Overall, internet usage in the
Philippines remains on a growth trajectory with seven million users added over last
year. Internet penetration now stands at around 63 percent out of 105.7 million
Filipinos. Moreover, more than half of the population, or 61 million, access the
Local Studies
In a global study called Wave7, Filipinos are using social media to primarily connect
with their families living overseas. As of this writing, there are more than 11 million
Filipinos living outside the Philippines. Social media has become a way for them to
communicate with their families and friends instead of using overseas call and text,
in the Philippines, it seems that Filipinos have grown fond of using apps such as
WeChat, Line, Skype, and Facebook Messenger. Line has a Free Call services. I use
Skype to call my friends abroad. With social media, the barrier to communications
between families separated by countries have diminished, and only the country’s
This is how Filipinos use social media – broken down according to its respective
activities, to keep company – 62%, to share new experiences to friends and followers
– 63%, to have fun – 65%, to meet new people – 70% and to stay in touch with
Over the years, the study has widened its study and strove to find that connection
between human behavior and social media use. During the study’s 7th year, the
results clearly suggested that our behavior in social media are driven by inherent
human truths that underpin consumer’s relationship with products and brands.
opinions and earning respect) and Learning (exploring the world and keeping up-to-
date).
intentions, helps to clarify the definitions relevant terms and also helps to
understand different views of researchers on these topics and themes, more specific,
the ways they approach and solve the problems. The following are some conclusions
from literature review; first, the concept of social media has been well elaborated.
Social media is the outcome of both web 2.0 technology and user generated content,
shares similarities with traditional media, but also differs from the traditional media
there are various types or forms social media that exist nowadays and new social
media platforms are launch on Internet every day. A common classification of social
microblogs.
market. Social media in the Philippines will continue to grow and become part of
every Filipino’s daily life. Creation of consumption of social media content will
continue to integrate into local culture as well, and whether this will be positive or
The fact that purchase intentions have been studies by researchers from various
perspectives, the communality of these views on purchase intentions can found that
CHAPTER 3
Research Methodology
Research Instrument
The researchers will use questionnaires to gather data, to know the statistically
information that will be helpful for the study. This statistical method will determine
Sampling Method
The researchers use purposive sampling or systematic sampling in this study. This is a
Residence of San Pedro Laguna who are using shopping application to purchase
𝒏
𝑵=
𝟏 + 𝑵ⅇ𝟐
The researchers are going to use Slovin’s Formula to compute the total number
Occupation:
Please check the following questions if STRONGLY AGREE, AGREE, NEUTRAL, STRONGLY
DISAGREE or DISAGREE.
Interview Questions
Do you consider the feedbacks and reviews before you purchase online?
Do you think your website data will be protected when you purchasing an
item?
San Antonio
Landayan
Langgam
San Vicente
Cuyab
Pacita 1
Pacita 2
Magsaysay
Chrysanthemum
Fatima
Estrella
United
San Roque
United Better
Living
Maharlika
Laram
Poblacion
Sampaguita
Rosario
BagongSilang
San Lorenzo
Nueva
Calendola
Santo Nino
Riverside
GSIS
Nerra
TOTAL
References:
https://business.inquirer.net/246015/ph-world-leader-social-media-usage
pure.au.dk/portal/files/75142267/The_influence_of%20_social_media_on_consume
r_behavior.pdf.
https://technology.inquirer.net/58090/ph-worlds-no-1-terms-time-spent-social-
media.
https://vulcanpost.com/12971/research-philippines-social-media/
https://www.d8aspring.com/eye-on-asia/4-more-reasons-why-social-media-in-the-
philippines-is-huge