Professional Documents
Culture Documents
Reseach of People
Reseach of People
CHINYEMBA VIMBAINASHE O
(C16128181A)
SUPERVISOR : MR DANHA
CHAPTER 1
INTRODUCTION
1.0 Introduction
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This chapter gives information about social media advertsing on customer purchase
decision. The growth of online social networks around the world has created a new place of
interaction and communication among people. Individuals can share their knowledge,
opinions and experiences with one another due to the online social networks provided
features and may have an impact on people’s behaviour in terms of communication and
purchasing (Darban, Li 2012). According to the cambridge dictionary (2017), social media
can be defined as websites or applications, which allow users to participate in social
networking by creating or sharing content. With the creation of social media platforms,
people are easier and faster connected to each other. In order to increase brand and
product awareness, companies need to take advantage of this connectivity (Meslat,2018)
Adept companies recognize that consumers have countless brand opportunities and
choices on a daily basis and social media impacts how they perceive different brands at the
moment that they make buying decisions (Hutter, Hautz, Denhardt, Fuller,2013). The
research tends to assess the impact of social media advertisement on customer purchase
decision at K.C.I Microfinance Eastlea branch. Most importantly, the research seeks to find
the effectiveness of social media advertising on customer purchase decision.
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activities that took place in order to create awareness from unawareness, persuade
potential clients to apply for loans and to remind existing clients about company products.
In 2017, an idea was brought forth to add another social media channel to enhance social
media advertising in K.C.I. Whatsapp was installed on K.C.I Microfinance hotline which was
attended at Eastlea branch where customers would also ask questions pertaining company
products and queries via the whatsapp thus advertising in the form of creating awareness to
those who are not aware of the product and persuading those who would have learnt about
the product to make purchase trials. Whatsapp was also used to notify customers on
promotions for example during school opening seasons, there is a promotion where existing
clients can apply for a school fees loan even though they would have a running loan. Clients
are notified via direct messaging and whatsapp statuses for already known customers.
Whatsapp proved to be a convenient form of communication for many potential clients
since it’s a cheap mode of communication. As a result, many customers responded more on
Whatsapp for social media advertisement. The management also fused digital marketing
workshops in order to empower the marketing department staff with much knowledge in
social media advertising.
In 2018, K.C.I Eastlea branch did not add any form of social media advertising channel on the
existing channels. However, it kept putting more effort on advertising using the existing
social media advertisement channels. In January 2019, K.C.I Eastlea branch joined Twitter
for advertisements purposes. Sadly, there was no tweets in as much as advertising credit
loans is concerned since they opened an account with Twitter. This is due to incompetent
social media advertising personnel. Notably, customer purchasing decision portrayed a
negative trend upon launching social media advertising within the organization. This has
been noted by a significant decrease in sales since sales are directly linked with customer
purchase decision, whether a customer decides to purchase or not to purchase it still has an
impact on sales. The table below shows years and corresponding sales for Eastlea branch.
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Table 1.1 Eastlea Branch Sales
Branch Name Year Sales
Eastlea Branch 2015 $60 000,00
2016 $68 000,00
2017 $62 000,00
2018 $55 000,00
2019 $50 000,00
The table is showing an increase in sales in the year 2016 by $8 000,00 from 2015 sales. This
is because advertising increased by the launching of social media advertising through
Facebook were customer purchasing decisions were positive. Sales started decreasing from
2017 up to 2019. Reasons that contributed to a decline in sales in that period which are
social media advertising related are that there was an incompetent social media advertising
personnel, the marketing department was understaffed and there was not a single laptop or
computer for the marketing department until a laptop was purchased end of 2018. All this
while the hotline tablet has been used for answering phone calls, social media advertising
and typing the necessary marketing documents. Below is graph showing changes in sales
since the implementation of social media advertising at K.C.I Microfinance Eastlea.
Figure 1.1 Eastlea branch sales graph
The graph in figure 1.1 is showing a decreasing trend on sales which is not a good sign for
the company. If the sales continue to decrease as they are doing according to this trend
shown on the graph, then the company is more likely to incur huge losses where it will
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struggle to remunerate its employees, lose its market share in the industry and the worst
case is shutdown of its operations hence the need for the researcher to undertake this
research study to investigate and suggest solutions to the existing problem.
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3. What are the recommended social media advertising platforms that can be adopted by
K.C.I microfinance.
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1.8.3 To K.C.I Microfinance
The research is going to assist the management and marketing department at K.C.I
Microfinance in designing social media advertising strategies that will unearth the
effectiveness of social media advertising on customer purchase decision. On areas of
weaknesses, the researchers are going to make use of the findings to provide reference on
how best the organization can make use of social media advertising on improving customer
purchase decision, as the road map to increase sales and competitive advantage in the
industry.
The research will focus on social media advertising and its impact on customer purchase
decision as part and parcel of managing performance on sales. The research will establish
whether there is a relationship between social media advertising and customer purchase
decision and whether social media advertising is effective on yielding a positive customer
purchase decision. Facebook, WhatsApp and twitter will be considered as social media
platforms for advertising. The research will be conducted at K.C.I Microfinance, Eastlea
branch as a case study.
1.10 Limitations
⮚ There was a constraint in terms of internet connection as the internet used by the
researcher would be unavailable during times of research conducting which would
slow down the research study.
⮚ The spreading of the corona virus worldwide, which originated in China, Wuhan
caused the researcher to finish her research study at home since most countries
including the researcher’s country Zimbabwe enforced a lockdown, where people
were encouraged to stay home so as to minimise the spreading of the pandemic
disease.
⮚ Time constraint is another limitation the researcher faced since the research is done
within one year and there are more things that needed to be explored in as much as
social media advertising on customer purchase decision is concerned.
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⮚ Not everyone is free to volunteer information which became a constraint for the
research study since some customers refused to cooperate with the researcher.
Social media advertising is defined as a form of digital advertising that serves paid ads to
your target audience using social media platforms such as Facebook, Twitter, Instagram,
LinkedIn and Pinterest according to Deshpande (2019).
Customer
Current or potential, and all others with problems and needs who seek either product or
service solutions. (Griffin, 2005).
This is the thought process that leads a consumer from identifying a need, generating
options, and choosing a specific product and brand according to Wharton University of
Pennsylvania (2011).
Sales
Microfinance
These are financial services especially in the form of microloans provided to impoverished
individuals and groups in poor and developing regions. Merriam Webster.com dictionary (6
June, 2020)
Credit loans
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According to Kagan, (2020), the term loan refers to a type of a credit in which a sum of
money is lent to another party in exchange for future repayment of the value or principal
amount.
Competitive advantage
Maritan and Peteraf (2016) define competitive advantage as the degree to which a firm
creates more economic value than rival firms in a given product market.
In summation, this chapter focuses on the introduction of the topic, background of the
study and objectives of the study which needs to be achieved as well as research questions
and hypothesis. Assumptions, delimitations, limitations that are encountered during the
research study and scope of the study are also in this chapter. The important factors that
motivated the research to have a desire to carry out the research on the impact of social
media advertising on customer purchase are also covered.
CHAPTER 2
LITERATURE REVIEW
2.0 INTRODUCTION
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This section is focused on providing the existing literature on the relationship between social
media advertising on customer purchase decision. It reviews the associated literature giving
theoretical and empirical literature on the research in question. Frameworks related to the
study are also given under this chapter.
The implication of Maslow’s hierarchy is that one must first satisfy basic needs before
progressing up the ladder. This suggests that consumers value different product attributes
depending upon what is currently available to them. Abraham Maslow put forward his
hierarchy of needs in 1943, sending ripple effects through the entire psychological
community. Under his theory, people act to fulfill their needs based on a five-part priority
system. The needs include, in order of importance: physiological (survival), safety, love,
belongingness, esteem/ego needs and self-actualization needs. According to Maslow, once
an individual has taken care of his basic physiological needs (food, water, shelter) and feels
safe and secure and some needs for love and belonging may rise to the forefront of their
concerns. Need for the respect of our fellows and for self-respect would come after and the
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very last one is called Maslow self-actualisation. Self-actualisation is about achieving self-
fulfilment. It is the desire to become all that one can be, to achieve everything of which one
is capable sometimes to make a real difference in the world (Buckley, 1997). People who
manage to achieve this level within our society are usually those who have a successful
career, who have enough financial security to ensure that their physical needs will be met,
and who have already won the esteem and respect of their social group.
Maslow’s theory has been translated over the year and includes a number of basic
assumptions. The first one is that lower-needs must be satisfied before higher-level
needs become motivators. The second is that once a need is satisfied it no longer
serves as a motivator. Finally the third one is that there are more ways to satisfy higher
level needs than lower level needs.
Now the basic assumptions of this theory have been understood, it would be interesting to
use it in order to prove that particular customer purchase decisions may really follow
Maslow’s hierarchy of needs such that upon satisfying a certain level of the hierarchy they
will aspire to fulfil the next level. Exposure of credit loans via social media through
advertising will attract customers because of their need to satisfy the next level on the
hierarchy. Loans are then viewed as a quicker way to satisfy the next level hence the
decision to apply for the loan. Once a need is satisfied it no longer serves as a motivator.
Therefore, a need on the next level of the hierarchy will motivate the customer to decide on
applying for the loan again to satisfy the arising need.
This part will deal with the consumer decision making process model. The consumer
decision making process model tends to be of importance to companies’ marketing
departments since it helps marketers understand how consumers make their purchase
decisions. It will provide transparency and encourage them to find some strategies in order
to influence the final purchase decision of their possible customers thus the relevance to
study it. In consumption, consumers pass through different stages that put together form
the consumer’s purchasing decision-making process (Belch and Belch, 2003). Specific stages
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are involved in this process. Hoyer and MacInnis (2010) and Sternthal and Craig (1982)
recognized five stages that are need recognition, information search, evaluation of
alternatives, decision making and post purchase evaluation. In their purchasing decision-
making process, consumers are often influenced by both internal and external influences
(Belch and Belch 2003). Today the accessibility and transparency of information has
profoundly influenced the decision making process; therefore, it is important to examine
what are the hurdles and fiction points that hold prospects becoming consumers, or keeps
consumers hesitating from repurchasing. (Silverman,2001)
Problem recognition:
This stage takes place whenever a consumer recognize a significant difference between the
desired and actual state of affairs, which is insufficient magnitude to arouse and activate the
decision process (Solomon, Bamossy and Askegard,2002), or need triggered by internal or
external stimuli. Need recognition occurs when consumers realize that they have an
unfulfilled need (Hoyer, MacInnis 2010). Needs by triggered by internal stimuli but also by
external stimuli. What is of interest here is that media might trigger needs through
advertisements displayed on a Facebook page for example K.C.I Microfinance Facebook
page, through discussions with a friend that could make consumers recognize that they have
unfulfilled need. Nowadays the mass media is no longer the only source of information,
which may serve as a trigger of a purchase to individuals. As a result, consumers are
exposed to vast amount of information, in order to get through the consumer’s filter
marketers have to identify a claim or promise about their services or products, which are
strongly penetrative. Filter, in this case, is a fact of being overlooked because of too much
information competing in the market place. (Silverman 2001).
Information search:
When prospects have a certain interest in a product or service, they tend to go through the
following steps before carrying out any action – identifying available options, studying
information selected options, and eventually judging which of these options can most likely
deliver the best outcome (Silverman 2001). Internal search indicates former information and
experience of an individuals which will result in future behaviour that the consumers will be
likely to take (Solomon, Bamossy and Askegaard, 2002). Even when a consumer is attentive
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towards a marketing offer, it does not imply that the offer will be comprehended as
intended. Therefore, aside from the accumulated information, any information or message
that is generally analysed and stored in the consumers’ memory in forms of certain meaning
will be used to evaluate alternatives.
Hoyer and MacInnis (2010) said that once the need recognition stage is over, consumers
want to be exposed to information. Social media offers them this information exposition
since consumers can get information from their ‘friends’ but also from brands about
products and services through pages they can ‘like’ on Facebook or ‘follow’ on Twitter. Belch
and Belch (2003) stated that consumers in the information search stage undertake internal
and external search. The authors said that consumers often consult personal sources when
they seek information. This means that consumers that are seeking for information about
products, services or brands can use social media platforms and tools to grasp or ask
information to their ‘friends’.
Evaluation of alternatives:
Regarding the amount of choices that is now available in our current societies, this step is
certainly the most difficult one during the purchase process. When a consumer is going to
choose between several alternatives, he will build for himself what can be called a set
alternatives. There exist several kinds of sets. The alternatives a consumer knows about is
called evoked set and the ones they actually consider will be his consideration set. The
evoked set gathers the products present in the consumers’ memory plus the ones that he
has discovered during his information research. Surprisingly it appears that consumers often
include small amounts of alternatives in their evoked set. For that reason, the main
objective of the marketers will be to make sure that their brain is in their target market’s
evoked set in order in order to have a chance to be selected by their customers during their
decision making process. Once it has been determined by the customer what can satisfy
their need, they will start seeking out the best option available. This evaluation can be based
upon different factors like quality, price or other factors important for customers. They may
compare prices or read reviews and then select a product which satisfies their parameters
the most (Show,2018).
Product choice:
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Once customers have assembled and evaluated the relevant options, they will have to
choose one. In order to do so, they will evaluate the criteria of each single option.
Evaluative criteria are the dimensions we use to judge the merits of competing options
(Solomon, Bamossy, Askegaard & Hogg, 2010). It is important to do that because
each product differs from one to another and it is according to those differences and to
their determinant attributes that customers are going to do their selection. Determinant
attributes are the features we actually use to differentiate among our choice (Solomon,
Bamossy, Askegaard & Hogg, 2010). Thus customers will look at the attributes of
the different products they have pre-selected and they will choose one of them
according to the attribute(s) more important for them.
The consumption actually occurs during the post-purchase phase. It is only after the
purchase that consumers will consume and evaluate their investment. The total time of the
consumption phase can vary widely, ranging from only few seconds through several hours
to a number of years. The evaluation will take place in the second part. Evaluation will take
place after actual purchase have been made Phillip Kotler (2008). Customers will think about
their purchase, they will try to figure out if the money they spend on it was worthwhile or
not and they will evaluate their possible satisfaction or dissatisfaction. This last part should
not be forgotten by marketers because they have the power to play on the satisfaction of
their customers by adding some after-sale and other services. Indeed trying to keep the
satisfaction of their customers at a high level will have a positive effect on their future
situation.
Created by Martin Fishbein and Icek Ajzen in the late 1960s. The theory of reasoned action
centres its analysis on the importance of pre-existing attitudes in the decision-making
process. The core of the theory posits that consumer act on behaviour based on their
intention to create or receive a particular outcome. In this analysis, consumers are rational
actors who choose to act in their best interests. According to theory, specificity is critical in
decision-making process. A consumer only takes a specific action when there is equally
specific result expected. From the time the consumer decides to act to the time the action is
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completed, the consumer retains the ability to change his or her mind and decide on a
different course of action. Marketers can learn several lessons from the theory of reasoned
action. When marketing products to consumers, marketers must associate a purchase with
a positive result and must be specific. Marketers must understand that long lags between
initial intention and completion of the action allows consumers plenty of time to talk
themselves out of a purchase or question the outcome of the purchase.
First of all, there exist several types of customer purchase decision behaviour. Kotler (2005)
has defined four different types of customer purchase decision behaviour based on different
levels of brand’s distinction and customer’s involvement. These four different types of
customer purchase decision behaviour are: complex buying behaviour, variety-seeking
buying behaviour, dissonance-reduction buying behaviour, habitual buying behaviour.
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The second type of customer buying behaviour is dissonance-reduction buying behaviour.
Dissonance-reducing behaviour is the consumer buying behaviour in situations
characterised by high involvement but few perceived differences among brands (Kotler and
Armstrong, 2008). It is defined by high level of customer involvement but low brands
differentiation. Customers are very attentive to the product’s features, however they do not
carefully compare similar products from different brands. In this type of buying behaviour,
the consumer is familiar with the product and various brands available, but has no
established brand preference. Here the buyer is more complex as compared to routine
buying behaviour because the consumer is confronted with an unfamiliar brand in a familiar
product class. This behaviour can apply when customers are buying easily available
products. The consumer would like to gather additional information about the brands to
arrive at his brand decision. Here, the marketer needs to design a communication
programme, which will help the buyer to gather information, increase his brand
comprehension and gain confidence in the brand.
Variety-seeking buying behaviour takes place when customer is less involved in purchase
process. Variety-seeking buying behaviour is the consumer buying behaviour in situations
characterised by low consumer involvement but significant perceived brand differences
(Kotler and Armstrong, 2008). However, they are carefully considering differences between
brands. This type of behaviour usually apply for goods or services at low price. This type of
behaviour is difficult to manage for brands because customers won’t hesitate to switch
brands if they are not satisfy by the product. Consumers often express satisfaction with their
present brand but still engage in brand switching. The motive is variety seeking which occurs
most often when there are many similar alternatives, frequent brand shifts and high
purchase frequency.
The final buying behaviour here is called habitual buying behaviour. This refers to the
purchase of day to day goods or services. Habitual buying behaviour is consumer buying
behaviour in situation characterised by low consumer involvement and few significant
perceived brand differences (Kotler and Armstrong, 2008). Customers are not particularly
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involved in the process and do not really pay attention to differences between brands. In
the case of the chocolate factory used in this thesis, customers’ variety-seeking buying
behaviour is the one that occurs. Most of the time the buyer is familiar with the various
brands available and the attributes of each and has a well-established criteria for selecting
their own brand. The buyers are well aware of the product class, know the brands and also
have a clear preference among the brands. Indeed, customer are usually not highly involved
in the purchase process and do not carefully compare different brands. However, if not
satisfy, they can easily switch brand. The marketer must continue to provide satisfaction to
the existing customers by maintaining quality, service and value. He must also try to attract
new customers by making use of sales promotion techniques.
This section presents empirical literature which summarises studies researched on customer
purchase decision. The studies are divided in global, African and local perspective.
Khatib (2016) conducted a research on the quantitative study of impact of social media
advertising on customer purchase decision in the Saudi Arabian market. He said that the
five- stage decision making model has provided a systematic approach in outlining the
general stages that consumers engage in all purchase stages. Results showed that social
media had direct influences on every stage of the consumer decision-making process
including information on acquisition, purchase behaviour and purchase communication and
evaluation, as well as influencing general opinions and attitude formation. This is consisting
with previous literature (Kaplanand Haenlein, 2009; Mangold and Faulds, 2009). The study
demonstrated that the influence of social media seemed to be very strong on the
information search decision stages. Consumers are highly selective in attending process, and
selecting the information before a purchase takes place. Information exposure is highly
selective in the initial stage of information, because consumers have the selection of
information source, in which determines the type of information that consumer will be
exposed to. To be noted, personal attitude is a crucial factor which underlines during the
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course of information acquisition and evaluation. As a result, not only judgements regarding
products or services are presumably based, but also it is a vital determinant of the
information consumers will seek out, in which it eventually affects the extent of the
information reception. Concerning the evaluation of alternatives stage, unbiased advices
and customer experiences may turn consumers’ choice from a brand to another. The notion
of trust seems really important since consumers tend to trust more peers than companies.
In the research findings, consumers play an active role in the course of information
acquisition because of the accessibility and availability of information on social media
platforms. The implication of this role of social media in purchase decision stage means that
consumers have been able to use a wide range of comparison tools, recommendation and
reviews available on social media that help them to make their purchase decision. The
influence of social media seems to be lower and a smaller importance at the need
recognition and post purchase behaviour stages compared to the other stages of the
consumer’s purchasing and decision making process. The research finding has revealed the
current situation concerning consumers’ post purchase behaviour in Saudi Arabia. Many
individuals have noticed and agreed that with social media, they are able to voice out their
opinions and to communicate with other consumers and with the company more
effectively. The researcher developed a questionnaire in accordance with his research
model as well as previous studies. The researcher judged the questionnaire by many
colleagues in marketing and business departments in Prince Sultan College. The
questionnaire developed three parts: the first one describes demographic characteristics,
the second one related to social media dimensions and the third one handles consumer
purchasing decision making process. A five-point Likert scale (1 strongly disagree to 5
strongly agree) were used in the second and third sections of the questionnaire to obtain
the information to test the impact of social media on consumer purchasing decision making.
Ogunyombo, Oyero and Azeez carried out a research on “Influence of social media
advertisements on purchase decisions in the Nigerian market. The research study was
quantitative in nature. In line with the objectives of their study, their findings revealed that
young people would generally view advertisements on social media. Also 66.9%
respondents ranging from some extent to very large extent viewed social media
advertisement. This means the ads on social media are very visible in terms of exposure to
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the audience. Social media itself is a visible medium and it is expected that its ads too have
similar visibility. Fred (2017) notes that social media is vital for brand creation and visibility.
Measuring visibility has also become part of survey elements carried out on social media;
hence, brand managers are usually concerned about social media visibility of their own
brand (Close, 2012). The study also established the visibility feature of social media.
Regarding the factors that may influence how young people pay attention to social media
advertisements, the level of creativity in the advertisements and relevance of the product to
the users are the major factors identified in the study.
This study revealed that young users of social media platforms are frequently exposed to
adverts on Facebook (31.5%) probably because another follow-up question showed that
Facebook is the most visited social media platform among them. Oyero et al (2011) in his
study on the study on the pattern of Facebook utilisation found that most youths spend
their time on Facebook, thus drawing attention to the role Facebook plays in the lives of
young people and the consequent influence. Therefore both findings established the
potentials of Facebook as the major social media platform that may serve the purpose of
advertisers on social media platforms. Findings on how social media advertisements on
purchase decisions show a significantly low influence. Social media advertisements appear
limited in driving purchasing decisions among young people in Nigeria. This study is
consistent with that of Otugo et al (2015) and Adelabu (2015) in which they identified very
low interest in young people’s decision to make a purchase or like a brand after being
exposed to the brand’s advertisement on social media. It may be therefore inferred that
making purchasing decisions based on exposure to advertisements on social media
platforms is not a major gratification for young social media users in Nigeria.
The quantitative method was adopted in this study. The universities were purposively
selected while a multistage sampling technique was used to select the faculties,
departments, levels and respondents in this study. The responses to the questionnaire were
processed and analysed with 15.0 version of the Statistical Package for Social Scientists
(SPSS).
Mudondo (2019) carried out a quantitative research study on the impact of social media
marketing on Zimbabwean commercial bank customers’ behaviour. The findings indicated
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that the bank customers perceived social benefits and customer satisfaction are significantly
positively related. This finding is consistent with those reported by such researchers as
Gordon and Levesque (2000), Lin and Lou (2011), and Liang, Ting Peng, Lu, Chi Chung, Wu,
Chia, Hsein (2008). This outcome may suggest that commercial bank customers in Zimbabwe
are more satisfied with an entity’s social media marketing activities if it allows them to
develop a sense of belonging and community as they check each other’s posts and
comments: to interact with their peers and friends and exchange valuable information.
Additionally, the bank customers satisfaction is further enhanced when meaningful social
relationship are a sense of identification are developed through personalised attention. The
findings also revealed a relatively positive and significant relationship between the
perceived information benefits inherent in social media marketing and the bank customers’
satisfaction. This finding is consistent with those reported by Ramanathan, Subramanian and
Parrot (2017): and Muntinga, Moorman and Smit (2011), all of who established the
existence of a strong link between the perceived informational benefits and customer
satisfaction. It therefore may suffice to argue that customers feel satisfied with their banks’
social media platforms were they are able to obtain, exchange and share information they
deem important in solving brand related problems through online question and answer
sessions.
A quantitive research approach was used to survey 384 bank customers in Harare and
Bulawayo, Zimbabwe using a structured questionnaire. Descriptive and inferential statistical
analyses were conducted using the Statistical Package for Social Sciences program.
Structural Equation modelling revealed a positive and significant relationship between the
perceived social, informational and monetary benefits inherent social media marketing and
the bank customers’ satisfaction.
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2.4 Chapter Summary
This chapter concentrated on the review of literature which is related to the research study.
The concepts under literature review which is related to the research topic are the hierarchy
of needs theory, consumer decision making process, theory of reasoned action and buying
decision theory. The chapter also comprises of empirical evidence which is the past studies
which were done globally, continentally and locally and the present research was justified at
the end. The next chapter looks at research methodology that the researcher used.
CHAPTER 3
RESEARCH METHODOLOGY
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3.0 INTRODUCTION
This chapter entails how the research was done. Research methodology refers to the
systematic, theoretical analysis of the methods applied to a field of study. The main purpose
of this section seeks to explain how research was conducted focusing on the research
design, research method, data sources, data collection method, data collection instrument,
population and study sample, sampling design techniques, procedures for data collection,
data analysis plan and ethical considerations. This therefore aids to shed light on data and
information on social media advertising and its impact on customer purchase decision
making
According to Akhtar (2016) research design is the conceptual blueprint within which
research is conducted. It is the arrangement of conditions for collection and analysis data in
a manner that aims to combine relevance to the research purpose with economy in
procedure. Kothari (2004) also observes that research designs are a blue print aimed at
facilitating the even sailing of a variety of operations in research, hence; it makes research
to be as well-organized as possible in order to yield utmost information where negligible is
realized in terms of effort, money as well as time. Research designs deal with making
decisions regarding to the techniques which are applied in gathering data, the type of
strategies and instruments for sampling that are used, and the way in which the constraints
of time and cost can be dealt with.
The research study concentrated on a quantitative type of methodology using a descriptive
survey research design. Quantitative methodology is the most appropriate type of research
as it has more advantages over qualitative methodology. The research permits a methodical
and well organized description that is valid, accurate and reliable. The statistical
calculations were conducted after the researcher collected the completed questionnaires
from the respondents and entering the collected data into the SPSS system. It is of
importance for a researcher to give a brief explanation on what is involved in the
quantitative research methodology and stressing out its main advantages.
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Murphy (2016). The target population is the entire aggregation of respondents that meet
the designated set of criteria. (Burns and Groove 1997). Cooper (2003) describes a
population as the total collection of elements about which we wish to make some interests
and a sample is a selection of some of the elements in a population, so that we may draw
conclusions at out the entire population. This study targeted all the customers at K.C.I
Microfinance, Eastlea branch because all the customers at Eastlea branch are considered to
have the appropriate information as per the requests of this study. This is because social
media advertising is done to fascilitate the customers’ purchasing decisions.
The sample size determination table below is derived from the sample size calculation
which expressed as blow equation (a) (Krejcie and Morgan ,1970). The Krejcie and Morgan’s
sample size calculation was based on p=0,05 where the probability of committing type/error
is less than 5% or p<0.05
Where
X2 = the table value of chi-square for 1 degree of freedom at the desired confidence level
(0,05= 3,45)
P = the population proportion (assumed to be 0.50 since this would provide the maximum
sample size).
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According to the table below it illustrate the sample size of the population according to
Krejcie and Morgan. For example, one may wish to know the sample size required to be
representative of the opinions of 9000 high school teachers relative to merit pay increases.
To obtain the required sample size enter Table 1 at N = 9000. The sample size
representative of the teachers in this example is 368. The table below is applicable to any
defined population.
The relationship between sample size and total population is illustrated in Figure 1. It should
be noted that as the population increases the sample size increases at a diminishing rate
and remains relatively constant at slightly more than 380 cases.
Table 3.3
_________________________________________________________________________
N S N S N S
_________________________________________________________________________
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85 70 440 205 4000 351
_______________________________________________________________________
S is sample size.
REFERENCE
Small-Sample Techniques. The NEA Research Bulletin, Vol. 38 (December, 1960), p. 99.
The sample size for the this study is 80 the researcher determine the sample using the table
above as adapted by Krejcie and Morgan. This is so because the population of MRDC is 100
which translate to the sample size of 80.
3.3.1Sampling
Sampling is a process used in statistical analysis where predetermined number of
observations are taken from a larger population. Cena et al explains that sampling is a
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process of choosing a sample. Pride and Ferrel (2000) states that sampling in marketing
research is the process of selecting representative units from a total population. There are
two types of sampling namely probability sampling and non-probability sampling. Fleetwood
et al defines probability sampling as sampling technique in which the researcher chooses
samples from a larger population using method based on the theory of probability. For a
participant to be considered as a probability sample, he or she must be selected using
random sampling. Non-probability is sampling used in trial research and does not represent
the target population, (Lovric, 2011). Non probability sampling uses subjective judgement
and utilizes convenient selection of units from the population. The researcher has adopted
non probability sampling using the convenience sampling for convenience and this assist the
researcher to carry out the research on available people.
Also, there are no criteria required to be part of this sample. Thus it becomes incredibly
simple simplified to include elements in this sample. All components of the population are
eligible and dependant on the researcher’s proximity to get in the sample. According to
Willaman (2011) convenience sampling allows the researcher to obtain basic data and
trends regarding her study without complications of using a randomised sample.
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In addition, it cost less than other sampling techniques since it is usually costly to carry out
research on samples. Researchers use convenience sampling in situations where funds are
not available to carry out the research.
However, convenience sampling come with drawbacks like limitation on generalisation and
inferences making about the entire population, since the selection itself is biased,
inaccuracies are bound to be encountered.
⮚ it allows the researcher to have higher level of control on how the information is
gathered.
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⮚ it is less expensive to obtain
⮚ it is easily available
However the main difficulty faced was that some data was obsolete due to the dynamic
business world to this end, primary data was then used to conceal such issues and making
the research more relevant and meaningful.
3.4.0 Instrument
3.4.1 Questionnaires
In carrying out the study, the researcher used primary data in which the researcher
distributed the questionnaires to customers from Eastlea branch. The semi planned
questionnaire comprised of close-ended, open-ended and Likert scale questions. The close
ended questions gives room for specific types of responses such as Yes or No, while in the
open ended type, respondents give responses according to personal thinking. Likert scales
generally give the respondents an extensive range of statements emerging from the literary
discussion, where they are expected to agree to or disagree. This is crucial for making sure
that the study objectives are expansively evaluated.
Questionnaires were preferable for the study due to the fact that they are incredibly cost
saving, time and energy saving as well. They are also capable of giving an easier analysis
because they come in the immediate serviceable form.
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3.4.2 Interviews
The interviews were used to link the information gaps presented by the questionnaires.
According to Cresswell (2012), Interviews are primarily done in qualitative research and
occur when researchers ask one or more participants general, open-ended questions and
record their answers. Often audiotapes are utilized to allow for more consistent
transcription. Interviews may be useful to follow-up with individual respondents after
questionnaires, e.g., to further investigate their responses. (McNamara, 1999). Advantages
of interviews include better control over the types of information that the interviewer
(researcher) receive. The interviewer can pick his own questions leading to precise
information that he will be looking for. Moreover, Interviews provide useful information
when participants cannot be directly observed. (Quad, 2017).
Also there is an advantage of Information Priorities interviews are a good method for
producing data based on informant’s priorities, opinions and ideas. Informants have the
opportunity to expand their ideas, explain their views and identify what regard as their
crucial factors.
On disadvantages, the interview answers may be deceptive because the interviewee tries to
respond in a way that will please the interviewer. This results in biases when collecting the
information. Also, equipment may be a problem. Equipment may be costly and require a
high level of technical competence to use.
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respondents a few days to complete the questionnaires and assured respondents that their
confidentiality was going to be observed as according to Cooper and Schindler (2006). Each
of the questionnaire was numbered after collection of the questionnaires. Data was coded
so that large quantities of information are reduced into a form than can be more easily
handled. Lastly, the researcher appreciated the efforts made by respondents and thanked
them for sacrificing their time to contribute to the study.
The software which was used for data analysis is Statistical package for social sciences (SPSS)
by use of descriptive and inferential statistics. Mean, frequencies, standard deviation and
percentages were used to profile sample characteristics as descriptive statistics. Correlation
analysis was used to establish the relationship between the dependent variable and the
independent variables. Tables, graphs and pie charts were used for presenting quantitative
data.
3.5.0 Delimitation
Delimitations are those characteristics that limit the scope and define the boundaries of
your study according to Simon (2011). The delimitations are in the control of the researcher.
The research was limited to K.C.I Microfinance Eastlea branch. The respondents were
Easslea branch customers. The research study focused on the impact of social media
advertising on customer purchase decision. The independent variables were Facebook
advertising, Whatsapp advertising and Twitter advertisng whilst the dependant variables
were customer purchase decision and sales.
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3.5.1 Validity and reliability
Reliability refers to how consistently a method measures something. If the same result can
be consistently achieved by using the same methods under the same circumstances, the
measurement is considered reliable, Middleton (2019). Zikmund (2003) defined reliability as
the degree to which measures are free from error and therefore yield consistent results.
Test-retest reliability, internal consistency reliability and equivalent forms reliability are the
methods that reliability can be measured. According to Polit and Hungler (1999) reliability
refers to the stability constancy and dependability of an instrument as highlighted by the
researcher used a questionnaire as an instrument, which is reliable, which correctly
measure and reflect time score of attributes under the study. The reliability co-efficient
indicates how well the items in a set are positively co-related to one another. A pre-test was
taken in order to understand the respondent better.
The researcher used research questions to develop the questionnaire. On the issue of
validity, the researcher discussed the instrument with her supervisor for affirmation. The
researcher was able to identify questions that needed to be revised and those with
ambiguities. The final questionnaire was then printed and released to the field for data
collection.
APPENDIX
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Dear Respondent
I kindly ask for your assistance in this research by sparing your time to respond to this
questionnaire. Please note that all answers are anonymous and strictly for academic
purposes only and no information will be used for personal purposes. Your cooperation will
be greatly appreciated.
1. Gender:
Male Female
2. Age:
On internet Haphazardly
Other:
Yes No
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Section 2
NB Using the provided scale of 1 to 5, where 1 means strongly agree and 5 means that you
strongly disagree, please tick one response that best describes your response to each of
the following statements. Remember, there are no wrong answers and your responses
will be kept confidential.
Statement 1 2 3 4 5
Statement 1 2 3 4 5
Statement 1 2 3 4 5
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9 There are frequent K.C.I Microfinance advertising posts on Twitter.
Section 3
2. Personal comment:
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