Download as pdf or txt
Download as pdf or txt
You are on page 1of 27

Impact of social media marketing on consumer behavior (college

students)
(Innovative Project Report on Business Analytics)

Submitted By:
2K19/DMBA/070 – Priyanka Gupta
2K19/DMBA/086 – Samyak Jain

Faculty Guide: Prof. PK Suri

Delhi School Of Management, Delhi


Technological University
November, 2020
TABLE OF CONTENTS

S No Topic Page No

1. Introduction......................................................................................................3

2. Literature Review............................................................................................4

3. Problem Statement..........................................................................................9

4. Objective...........................................................................................................9

5. Questionnaire...................................................................................................10

6. Sampling Design and Sampling Size..............................................................12

7. References.........................................................................................................14

8. Demographic Profiling………………………………………………………15

9. Tests to see suitability of data ……………………...……….………………18

10. Multiple Regression………………………………………………………….20

11. Conclusion……………………………………………………………………24

12. Limitations…………………………………………………………………...24
ABSTRACT

Online advertising plays an important role in the Indian advertising industry and in the
current generation, advertisers are looking for a big break to go beyond traditional offline
advertising. Current literate Indian customers have mapped out a roadmap for online
advertisers and they use too much on the Internet. This study aims to assess the effects
of social media marketing on online shopping behaviour of students. The study also aims
to find consumers' preferences for online shopping via social media marketing rather than
buying in physical stores. The purpose of this research is to discover the importance of
perceived usability, perceived ease of use, perceived joy, perceived reliability and social
influence on purchasing intensity during online shopping via social media.
Introduction

Social media is a trend that is relatively recent. The World Wide Web has endured a
proliferation of user-driven web technologies including blogs, social networks, and media
sharing platforms over the previous decade. Social media has changed the way how people
interact with each other as well as with businesses. The information about anything is very
easily accessible to the whole world. Social media has made a broader impact on the brands
as every parameter good or bad is judged and information is shared. This has created a need
for brands to do social media marketing.
The rise in social media has led to new ways to look for and obtain information on the
market's multitude of products and services. This paved the way for customers to quickly
and easily connect and discuss products with each other Customer views on products and
services are constantly influenced in online spaces by outsiders, which in turn impacts
opinions in the market.
Of various social media platforms, Facebook has more than 750 Million users, Twitter has
250 Million users, LinkedIn has 115 Million users and Myspace has 50 Million users. The
generation of Millennial is the largest consumer of goods and to get their attention brands to
need to adopt Social media marketing. Social media has become an important tool for brands
to build brand image and generate a customer base. The celebrities like Cristiano Ronaldo,
Kylie Jenner are paid in excess of $150,000 US for a single post for a brand. This shows that
companies do understand now the impact of Social Media. The importance of Social Media
is known by Brand managers but not much is known as to how much they impact the
consumer decision-making process.
Many brands nowadays get paid reviews done on various websites and blogs to build a brand
image. The need for brands to understand the impact of these actions is important to
determine their further strategy and gain a competitive advantage. The main source of
revenue of Facebook, Google is the revenue generated through Social Media marketing and
this impact is going to develop further as the technology is growing continuously.
The century is dedicated to the Technology revolution especially the internet. India has more
than 600 Million active mobile phone users and with cheap data, the impact of Social media
marketing will further impact the brand and the markets. WhatsApp is another medium with
more than 400 Million active monthly users and the impact of reviews and communication
is ever-evolving. The brands need to communicate properly and understand the impact of
such communications as this will ultimately help in developing a further strategy going
forward.
LITERATURE REVIEW

1. UNDERSTANDING SOCIAL MEDIA MINDSET OF


CONSUMERS: AN INDIAN PERSPECTIVE
Sita Mishra & Archana Tyagi, Vol. 12, No. 2, August 2015
The above research studies the increasing importance of social media and the factors that
influence the level of acceptance of social networking sites by Indian consumers. Mainly,
firms are using social media to reach out to the teenagers and young adults who use social
media on a continuous basis. The final analysis showed a positive influence of perceived
usefulness, perceived ease of use, and personal fit while a negative influence of perceived
risk on the consumer purchase decision.
Businesses are increasingly using online medium to create online communities, at the
centre of which are social networking sites. It is facilitating interaction between consumers
and community with a positive association between online purchases and internet use. It
helps create brand awareness, customer acquisition, customer growth and loyalty, customer
research etc. Social networks help connect to consumers and disseminate information as
well as getting consumer inputs. There is a stark difference between the behaviour and
attitude towards social media from a marketer’s perspective and a consumer perspective. A
study showed that consumers stop shopping online if they are irritated by the company’s
social media behaviour. Among the social networking sites, Facebook is the most trusted
and popular site.
Social networking sites are especially providing an opportunity to the small businesses to
network with each other and their consumers and increase their reach. It is cost-effective
and marketers can customize plans and initiatives as per the target group. Still new to this
trend, they can see the huge potential that social networking sites hold.
The study focused on the following 2 questions:
1. What is respondents’ opinion towards marketing of products on social networking
sites?
2. Which factors influence consumers’ attitude towards marketing of products through
Social Networking Sites?
Online shoppers look for utilitarian value which is associated with the cognitive aspects of
a product and the economic benefits of it. Shoppers’ online get the convenience of
comparing merchants, evaluating price or quality and comfort of shopping from home.
The research studied the following hypothesis:
H1: The perceived usefulness of marketing through SNS has a positive and significant
effect on the consumers’ attitude.
H2: The perceived risk of marketing through SNS has a negative and significant effect on
the attitude.
H3: The personal fit with the brands marketing on SNS has a positive and significant effect
on the attitude.
In terms of perceived usefulness, it has a strong influence where users are driven to use a
technology because of the functions it provides along with the customization it provides. In
terms of the perceived risk of a purchase decision, it directly impacts the purchase attitude
of the consumer in a negative association. Third, personal fit plays an important role in
terms of consumers basing their purchase decision based on whether the brand or product
matches the consumer’s perception of the self, and the person-brand relationship.
The social media sites are providing interesting marketing opportunities, but there is need
to inspect the social networking sites from a managerial perspective.

2. The Impact of Social Media on Consumers’ Acculturation and


Purchase Intentions
Hatice Kizgin, Ahmad Jamal, Bidit Lal Dey & Nripendra P. Rana, December 2017

The aim of the study is to examine how the use of social media affects the acculturation
and subsequently the consumption choices of immigrants and ethnic-minority consumers.
The study further shows that social media is an important driver of cultural change, and
therefore consumption choices.
There can be seen a rise in the cultural diversity around the world leading to increasing
interdependence and integration of markets as well as differentiation to cater to different
segments of the society.
Here, acculturation is defined as the culture change that happens due to interaction with
people from other cultures, and different cultural environment. Enculturation is defined as
learning about one’s own culture.
As per the research, social media is now considered to be an important and effective means
which enables interactions among peers, consumer groups and organizations and develop
and maintain social and business relationships. Social media is used as a tool to collect
information about the marketplace and facilitate change.
The model studied here consists of 4 hypotheses:
H1: Separation in language preference on social media is a) positively associated with
enculturation and b) negatively with associated with acculturation.

H2: Assimilation of the host culture’s language on social media is a) negatively associated
with enculturation and b) positively associated with acculturation.

H3: Integration in an immigrant’s language preference on social media is positively


associated with a) enculturation and b) acculturation.

H4: Enculturation and acculturation are positively associated with purchase intentions.
Apart from consumers, profit and non-profit businesses also have an interest in connecting
with consumers through social media to promote their products and disseminate
knowledge surrounding products and services. Through social media, businesses can
identify different customer segments and target customers they want based on
demographics and similar interest groups. Digital helps the business customize their
marketing strategy in terms of incorporating both mainstream cultural values and
customizing as per their target group. In connecting with consumers online, businesses also
look at identifying influencers to better connect with consumers based on their assimilation
tendencies.

3. The Effects of Social Media Marketing Antecedents on Social Media


Marketing, Brand Loyalty and Purchase Intention: A Customer
Perspective
Bader M. A. Almohaimmeed, Journal of Business and Retail Management Research
(JBRMR), Vol. 13 Issue 4, July 2019

The aim of this study was to explore the effects of the antecedents of social media marketing,
brand loyalty and purchase intention. The study also aims at investigating the effect of social
media marketing on brand loyalty and purchase intention. The final objective of the study is
to identify the effect of brand loyalty on purchase intention.
The model studied here consists of 6 hypotheses:
H1: Social Media Marketing (SMM) antecedents significantly affect SMM
H2: SMM significantly affects brand loyalty.
H3: SMM significantly affects customer purchase intention
H4: SMM antecedents significantly affect brand loyalty
H5: SMM antecedents significantly affect purchase intention
H6: Brand loyalty significantly affects purchase intention
All the 6 hypotheses tested in the study were accepted. Furthermore, concerning the effect
of SMM antecedents on social media marketing found in this study, there were similar results
that had been revealed in previous studies.
For organizations to start an effective social media marketing campaign, five precursors
which should be considered include: Business reputation, frequency of updates on social
media, content quality, social media motivations and brand communications.
Reputation of the organization directly translates into trust of the potential customer and
hence makes social media marketing more effective. In a paper published in 2015, Ashley
and Tuten emphasized on the importance of content and frequency of social media updates.
Their study showed that the content should be fresh, incentivizing customer engagement and
should be frequently updated. There are 2 main levels of brand loyalty which explains its
effect on customer purchase intention: behavioral and cognitive loyalty. The former is
related to customer behavior and can be described or measured in terms of customer repeat
purchase of the same brand whereas, cognitive loyalty refers to the customers’ initial choice
of the brand. Increased brand loyalty is ultimately aimed at increasing customer purchase
intention.

4. THE INFLUENCE OF SOCIAL MEDIA MARKETING ON


CUSTOMER SATISFACTION IN HOSPITALITY INDUSTRY
Kishor Chandra SAHOO , Kakuloor Rohith Sai GOUD , Sandeep Kumar VADLAKONDA, Kathi Sai
VARDHAN, Journal of Tourism Challenges and Trends, Vol. XI, 2018, pp. 31-48.

The purpose of the study is to understand the effect of social media on customer satisfaction
using factors from various secondary research. The main factors whose influence was
studied are Reviews & Ratings, Blogs, Banner Advertisement’s, and Brand
Communication’s. The data was collected from 250 residents from Hyderabad and its
validity is tested by exploratory factor analysis. Further regression analysis is done to
generate a model to understand the influence of these factors combined. The result indicates
that these factors effect positively the consumer satisfaction. The hypothesis generated on
paper is a proof of these factors influence and further research can be conducted with a large
sample to validate these results. The questionnaire laid the foundation for the model. The
model generated will help the managers understand and generate new strategies based on
these factors. The below factors indicates the relationship between customer satisfaction and
hypothesis generated to test the influence.

5. ONLINE MARKETING AND CONSUMERPURCHASE


BEHAVIOUR: A STUDY OF NIGERIAN FIRMS
 J. Gabriel  Published 2015
_____________________________________________________________________________

The purpose of the study is to understand the behavioural factors of consumers that affect
the effectiveness of e-marketing is crucial. While some researchers have addressed this
issue, few studies draw their conclusions by focusing on the customer angle. The fact that
the survey of developing countries in this regard has been less than expected. The aim of
the work is to empirically validate, while analysing Nigerian companies doing internet
marketing, how these influence the purchasing behaviour of consumers. The paper try to
understand the extent to which the functionality of the Internet infrastructure and Internet
security issues influence consumers' decisions to buy. The survey used a structured
questionnaire to obtain information from selected companies in Lagos State, Nigeria. A
reliable Cronbach's alpha was used to determine the reliability of the questionnaires. Data
were analysed using simple regression while the hypotheses drawn were tested. The results
show that online marketing has influenced consumer buying decisions in Nigerian
companies. There is a significant relationship between consumer purchasing decisions and
the Internet infrastructure in Nigeria. There is also a relationship between internet security
and consumer buying behaviour.
6. A STUDY ON IMPACT OF ONLINE ADVERTISING ON
CONSUMER BEHAVIOR (WITH SPECIAL REFERENCE TO E
-MAILS)
SRIVASTAVA PRIYANKA. PUBLISHED 2012
____________________________________________________________
The purpose of the study is to understand the effects of the Internet distribution model.
The study suggests that a delivery model on the Internet is what many large advertisers have
been waiting for. They want Internet advertising to be more like TV advertising. In fact, they
want to do better than television advertising: all the visual effects of traditional broadcasting
with added value of interactivity. The goal of advertisers is to make their ads more engaging.
Interactive advertising allows customers to become more engaged as they initiate most of
the action. The experience gained during this interaction will drive the brand's attitudes. The
big trend is that web advertising is moving away from the banner and marketers are
experimenting with new forms such as games and demonstrations of interactive products in
new forms such as pop-ups, children's windows and page frames. Feedback is one of the
strengths of websites, and an effective website captures visitor information in a systematic
way that can be used in strategic planning.

7. Digital marketing strategy in promoting product


IMELDA CHRISTINA, FENNI, DEVIA ROSELINA PUBLISHED 2019

The study focuses on the fact that the rapid development of the Internet and its function
has become one of the most important technologies in the world as it is very influential
for people's lives. Against this background, one of the pay-tv companies achieves
integrated marketing communication with the Internet as a tool for marketing its
products. This study aims to understand the role and strategy of various digital marketing
channels, including the website, search engine marketing (SEM), promotional online,
display advertising, email marketing and social media marketing in product marketing.
The methodology is qualitative descriptive with the help of the interview and observation
of the participants. The data was collected through documents and literature related to
digital marketing. This study found that the digital marketing strategy has an important
role in marketing products. The entire digital marketing strategy has its own specificity in
planning, implementation or evaluation. This showed that the digital marketing strategy
was well implemented in the company.
8. Impact Of Online Advertising On Consumer Attitudes And
Interests Buy Online (Survey On Students Of Internet Users In
Makassar)
Muhammad Ali Aqsa, Dwi Putri Kartini. Published 2015

The purpose of the study is to understand that the rapid development of


technology today means that Internet users are constantly increasing. This is
supported by the easy access to the internet for internet users via PC, laptop,
mobile phones, tablets and other media. The increase in the number of Internet
users makes the Internet a real marketing by using online advertising. With a wide
reach and access to various layers of the Internet, media environments can be
suitable advice for marketing the business. However, an increasing number of
Internet users, especially in the city of Makassar, is not accompanied by an
increase in the number of purchases online. On this basis, it is necessary to
examine how the effects of online advertising on the buying behavior of
consumers and online, as well as how controlling behavior and subjective
standards affect the attitudes and interests of consumers buying online. This study
aims to analyze and test the effect of online advertising on consumers' attitudes
and interest in buying online, a survey of students for Internet users in Makassar.
The study was conducted on students from public and private universities in the
city of Makassar. The method used was a quantitative analysis using the technique
of the motivated sampling method with a sample of 340 persons. Testing this
hypothesis using structural equation modeling (SEM). The results showed that
online advertising affects consumers' shopping behavior and online. Interactivity
Dimensions of online advertising have the greatest influence on the attitudes and
interests of consumers who shop online.

9. ONLINE ADVERTISING AND ITS IMPACT ON CONSUMER


BUYING BEHAVIOR
Gaurav Bakshi , Dr. Surender Kumar Gupta Volume 3, Issue 1 (February 2013)

The magazine talks about online advertising. It starts with an introduction to online
advertising. Online advertising has grown very fast over the last decade. In 2000, online
advertising spending in the United States was $ 8.2 billion (Hollis 2005). These numbers
have grown to $ 12.7 billion as more people are connected and spend more time online.
Additional devices (for example, mobile phones and televisions) can provide additional
internet connection. The document shows the following facts and figures regarding the
use and commitments of Indian consumer behavior:

1 recommendation people know 93%


2 Editorial content 87%
3 brand pages 78%
4 newspapers 77%
5 TV 76%
6 consumer reviews published 74%
7 magazines 73%
8 Brand sponsorship 72%
9 Radio 66%
10 emails 65%
11 signs / outdoor 62%
12 ads before movies 61%
13 Search Result Ads 50%
14 video ads online. 50%
15 banner ads 48%
And concluded that word of mouth is the most reliable source of advertising.
The document concluded by stating that with the increased adoption and cleavage of the
Internet, the World Wide Web has gradually become a standard advertising platform. The
web offers the commercial advertising world richer multimedia tools, interactive services
and a global reach. The need is to understand the target customers and then develop
sound strategies to get the most out of this new medium.

10. Impact of Online Advertisements on Students and Professional


Employees: A Research on Consumer Behaviour
Ramesh Babu Kakumanu. International Journal on Customer Relations; New Delhi Vol. 1,
Iss. 2, (2013)

The study suggests that online advertising plays an important role in the Indian advertising
industry and in the current generation, advertisers are looking for a major break to go beyond
traditional offline advertising. Current literate Indian customers have mapped out a roadmap for
online advertisers and they use too much on the Internet. This study examines the effects of
online advertising on students and professional staff and their purchasing behaviour. This analysis
is performed to investigate customer recalls from various online ads such as size, type, layout,
behaviour and product categories. The study is done by dividing the samples into two categories
of men and women and two subcategories of students and working group. The study's conclusion
suggests that students are more attracted to online advertising. This can be explained more
because the study indicates that the category of men is more readable than for women in the
category of employees.
PROBLEM STATEMENT
People consider social media as a reliable source of information and as a
platform to form active communities where they can participate in discussions
about different issues. This study is to gauge the impact of social media
marketing on online purchase behaviour among college students. The study
also aims to find consumer preference on online purchase through social media
marketing as compared to purchase through physical brick and mortar stores.
The study involves examining both consumer interaction within themselves as
well as consumer interaction with businesses. It is to understand the difference
in effect of both these parameters on online purchase behaviour of these college
students.

OBJECTIVES
1) To determine factors affecting purchase intention of consumers online
2) To determine whether Perceived usefulness of social media influence
purchase intention while shopping online
3) To determine whether Perceived trustworthiness of social media
influence purchase intention while shopping online
4) To determine whether Perceived ease of use of social media influence
purchase intention while shopping online
5) To determine whether Perceived enjoyment of social media influence
purchase intention while shopping online
6) To determine whether Social Influence influence purchase intention
while shopping online
7) To determine whether the distribution of purchase intention is same
across the genders.
8) To determine whether the distribution of purchase intention is same
across the college types
9) To determine whether there is a significant correlation between
independent variables.
SAMPLING DESING AND SAMPLE SIZE
Target Population:
The survey will be conducted among the college students of Delhi and nearby cities like Noida,
Ghaziabad, Gurgaon, Faridabad etc., together known as National Capital Region (NCR).

Sampling Population:
The respondents should be using social media platforms for buying products and services.
The respondents should be college students studying in Delhi NCR.
The respondent will be selected using Quota Sampling and Non-Probabilistic Voluntary Sampling.

Sample size:
Sample size is calculated based on the Cochran’s formula as following:

n=Z2 (π)(1-π)/(e2)

where,
n = Sample size
Z = Confidence interval of 95%
π = Proportion of social media users above 18-24 years of age (college students) among
social media users of Delhi NCR i.e. 0.8
e = maximum allowance of error
Z = 1.96 for the 95% confidence interval

π = 0.8
e = 0.05

n = (1.96)2(0.8)(0.2)/(0.05)2
n = 246
Quota Sampling:
Non-probability sampling technique “Quota sampling” is used based on college type,
where in the quota of target population are determined by dividing no. of college students
of one type by total no. of colleges. We have used number of colleges students all over
India as a proxy for number of college students studying in Delhi NCR since that data is
not readily available

College type College students(in weight Sample size


lakhs)
MBA 5.88 0.031034 8
ARTS 93.49 0.493429 121
ENGINEERING 38.4 0.202671 50
COMMERCE 40.3 0.212699 52
MEDICAL 11.4 0.060168 15
Source: Aishe.nic.in

DEMOGRAPHIC PROFILING

The demographics of the sample show that maximum responses were received from youth
from the Arts background followed by students from Commerce and Engineering
background. This was based on the quota as the maximum number of students in Delhi
NCR are Arts students. The concentration of MBA students in Delhi NCR is least among all
the fields of education.
Education level
140

120
121
100

80

60

40 52 50

20
8 15
0
Arts Commerce Engineering MBA Medical

Household income is an important factor in the overall spending of a consumer. Therefore,


it also affects the online spending patterns. It was observed that 35% of the respondents
were having a household income of Rs 5-10 lakhs and 37% of the respondents were having
a household income of Rs 10-20 lakhs.

Household income (per annum)

(blank)

Above 20 Lakhs

10 Lakhs - 20 Lakhs

5 Lakhs - 10 Lakhs

2.5 Lakhs to 5 Lakhs

Below 2.5 lakhs

0 20 40 60 80 100

The analysis of the amount spent on online shopping shows that 42% of the respondents
spend less than Rs 1000 per week approximately. Also, 71% respondents spend less than
Rs 2500 on online shopping. This can be due to the maximum number of students being
from the under-graduate level wherein they are dependent on their parents and don’t have
their own income sources. This limits their online spending compared to post-graduate
students who would be employed and earning.
How much(approx.) do you spend on online
shopping (zomato, amazon, etc) in a week

1000-2500
29%
2500-5000
42%
5000-10000

Above 10000

Below 1000
20%
7%
2%

Seeing the social media websites that the respondents use, almost all use social networking
websites like Facebook, Instagram etc. Also, photo and video sharing websites like YouTube
and Pinterest have gained popularity among the youth as a way of interacting with other
consumers. Very few students use LinkedIn as it is a platform generally used by
professionals for employment and job-seeking purposes and professional networking.
Distribution of Purchase Intention across college type

ANOVA
AVG-PI
Sum of Squares df Mean Square F Sig.
Between Groups 7.508 4 1.877 3.268 .012
Within Groups 138.423 241 .574
Total 145.931 245

With significance level 0.012(<0.05) we can say there is a significant difference between
distribution of purchase intention across college type( Medical, Engineering, MBA, etc)

Distribution of Purchase Intention across genders

ANOVA
AVG-PI
Sum of Squares df Mean Square F Sig.
Between Groups .099 1 .099 .166 .684
Within Groups 145.832 244 .598
Total 145.931 245

With significance level .684(>0.05) we can say that there is no significant difference in
means of Purchase Intention across genders(Male and Female)

TESTS TO SEE SUITABILITY OF DATA FOR REGRESSION ANALYSIS

Normal Distribution of Residuals:

According to above Histogram the residuals seems to be normally distributed which


signifies that the Linear regression model can be built on the factors assumed.
Autocorrelation Test:

The Durbin-Watson test is performed to check the autocorrelation between the residuals.
According to Durbin-Watson test performed in the model, the value of Durbin-Watson test
comes out to be 1.654 which is in acceptance range of 1.5 to 2.5. This indicates that the
autocorrelation is absent between the residuals.

Multicollinearity Check:
Multicollinearity check is performed using CI and VIF. The values of both are available in
the table below:
From the above two table the values of VIF is coming out to be in the ranges of 1 to 2 which
is acceptable( The acceptable range for VIF is <10). Which suggests Multicollinearity is
absent in the model and Regression can be performed. Similarly the value of CI comes out
to be less than 25. Previously it was more than 29 in original model with 6 independent
factor, to correct that Facilitating Conditions variable was dropped to remove
multicollinearity. Now the values are in acceptable range which suggests that
Multicollinearity lies in acceptable range and we can proceed with the regression analysis.

MULTIPLE REGRESSION MODEL

Table.1 Model Summary


Table.2

Table.3

Y = .555+.283*X1+.002*X2+0.148X3-0.045X4-.381*X5+e

Where,
Dependent Variables:
Y = Purchase Intention

Independent variables:
X1=Perceived Usefulness
X2=Perceived Ease of Use
X3=Perceived Enjoyment
X4=Perceived Trustworthiness
X5=Social Influence
Confidence level = 95%
The value of coefficient correlation(R) which is used to measure the quality of prediction
of dependent variable is 0.607(Table1). Which indicates a good level of prediction. R^2
represents percentage of variation in dependent variable explained by the model. In our case
R^2 is equal to .369 i.e. we are able to explain 36.9% of variation in dependent variable,
PI.

F statistic is used to check whether model is a good fit for the data. Since, in our case P(0.000)
is smaller than 0.05(alpha level), we can say that independent variables in our model
significantly explain the variability in dependent variable, PI.

Unstandardized Coefficients show how much a unit change in an independent variable leads
to change in dependent variable when all the other variables are kept constant. Coefficient
for PU is 0.347 which means a change in one unit of PU leads to change of 0.347 in PI.
Similarly, Coefficients for PEOU, PE, PT, SI are 0.003, 0.171, -0.44, 0.389 respectively.
PU, PEOU, PE and SI share a positive relationship with PI whereas interestingly PT share a
negative relationship with PI.

Hypothesis Testing

1) H0: Perceived Usefulness (PU) does not have a significant influence on


Purchase Intention (PI) while shopping online through social media
H1: Perceived Usefulness (PU) has a significant influence on Purchase
Intention (PI) while shopping online through social media

Here, PU has a p-value of 0.000 which is below 0.05 (alpha-level) and thus we reject the
null hypothesis. Thus, PU has a significant impact on the Purchase Intention.
2) H0: Perceived Ease of Use (PEU) does not have a significant influence on
Purchase Intention (PI) while shopping online through social media
H1: Perceived Ease of Use (PEU) has a significant influence on Purchase
Intention (PI) while shopping online through social media

Here, PEU has a p-value of 0.970 which is above 0.05 (alpha-level) and thus we accept the
null hypothesis. Thus, PEU does not have a significant impact on the Purchase Intention.

3) H0: Perceived Enjoyment (PE) does not have a significant influence on


Purchase Intention (PI) while shopping online through social media
H1: Perceived Enjoyment (PE) has a significant influence on Purchase
Intention (PI) while shopping online through social media
Here, PE has a p-value of 0.015 which is below 0.05 (alpha-level) and thus we reject the
null hypothesis. Thus, PE has a significant impact on the Purchase Intention.

4) H0: Perceived Trustworthiness (PT) does not have a significant influence on


Purchase Intention (PI) while shopping online through social media
H1: Perceived Trustworthiness (PT) has a significant influence on Purchase
Intention (PI) while shopping online through social media

Here, PT has a p-value of 0.452 which is above 0.05 (alpha-level) and thus we accept the
null hypothesis. Thus, PT does not have a significant impact on the Purchase Intention.

5) H0: Social Influence (SI) does not have a significant influence on Purchase
Intention (PI) while shopping online through social media
H1: Social Influence (SI) has a significant influence on Purchase Intention (PI)
while shopping online through social media

Here, SI has a p-value of 0.000 which is below 0.05 (alpha-level) and thus we reject the
null hypothesis. Thus, SI has a significant impact on the Purchase Intention

Pearson
Correlation among PU, PEU, PT, PE, SI

Pearson correlation investigates whether there is a statistically significant correlation


between independent variables being studied. Table below concludes there is statistically
significant relationship between Perceived usefulness(PU), Perceived ease of use(PEU),
Perceived Trustworthiness(PT), Perceived Enjoyment and Social Influence. Therefore it
shows increase or decrease in one independent variable leads to change in other variable

CONCLUSION

The purpose of this research is to find out the significance of Perceived Usefulness,
Perceived Ease of Use, Perceived Enjoyment, Perceived Trustworthiness and Social
Influence on Purchase Intention while shopping online through social media.
The result shows that there is a significant positive correlation reported between all 5 factors,
therefore any change in any of the variables under study will lead to change in other
variables.
Another analysis was done to investigate the impact of these 5 variables (PU, PEU, PE, PT
and SI) on Purchase Intention of online shopping through social media. In order to check the
validity of the model, ANOVA test is used and it proves that the model is significant.
CORRELATIONS

AVG-PT AVG-PU AVG-PEU AVG-PE AVG-SI

AVG-PT Pearson Correlation 1 .230** .422** .426** .331**

Sig. (2-tailed) .000 .000 .000 .000

Sum of Squares and Cross- 150.430 27.786 46.636 54.594 47.972


products

Covariance .614 .113 .190 .223 .196

N 246 246 246 246 246

AVG-PU Pearson Correlation .230** 1 .412** .267** .425**

Sig. (2-tailed) .000 .000 .000 .000

Sum of Squares and Cross- 27.786 96.758 36.458 27.422 49.373


products

Covariance .113 .395 .149 .112 .202

N 246 246 246 246 246

AVG-PEU Pearson Correlation .422** .412** 1 .461** .481**

Sig. (2-tailed) .000 .000 .000 .000

Sum of Squares and Cross- 46.636 36.458 81.095 43.355 51.189


products

Covariance .190 .149 .331 .177 .209

N 246 246 246 246 246

AVG-PE Pearson Correlation .426** .267** .461** 1 .246**

Sig. (2-tailed) .000 .000 .000 .000

Sum of Squares and Cross- 54.594 27.422 43.355 108.935 30.401


products

Covariance .223 .112 .177 .445 .124

N 246 246 246 246 246

AVG-SI Pearson Correlation .331** .425** .481** .246** 1

Sig. (2-tailed) .000 .000 .000 .000

The result of multiple regression shows that 3 variables (PU, PE, SI) have a significant
impact on Purchase Intention while online shopping through social media. Whereas the other
Sum of Squares and Cross- 47.972 49.373 51.189 30.401 139.784
products

Covariance .196 .202 .209 .124 .571

N 246 246 246 246 246

**. Correlation is significant at the 0.01 level (2-tailed).

2 factors (PEU, PT) does not have a significant impact on Purchase Intention while shopping
online through social media.

Therefore, we can say that people find social media useful in terms of getting information of
products and services easily. The influence of their peer groups is also a deciding factor in
their online purchases and they find these opinions reliable.

Limitations:

1. The model is based on a limited number of factors which may not hold true if more
number of factors are added. Conversely more number of factors can be added which
require more time and further analysis.
2. The sample size of the survey is small which when increased can provide further
analysis and give further insights into the model.
3. The model may not be accurate in times of economic distress and can change when
people’s income changes or the economic changes are further improved.

Recommendation:
1. The number of factors can be increased and further analysis can be done to
understand the influence of social media on buying decisions and more insights can
be generated.
2. The sample size can be increased which will further give more data and proper
insights can be generated from the model. The significance of the model can be
increased further though these two recommendations.

REFERENCES
1. Understanding social media mindset of consumers: an indian perspective by sita
mishra and archana tyagi, volume 12, no. 2, august 2015.
2. The impact of social media on consumers’ acculturation and purchase intentions
by hatice kizgin, ahmad jamal, bidit lal dey and nripendra p. Rana, december
2017.
3. The effects of social media marketing antecedents on social media marketing,
brand loyalty and purchase intention: a customer perspective by bader m. A.
Almohaimmeed, journal of business and retail management research, volume 13,
issue 4, july 2019.
4. The influence of social media marketing on customer satisfaction in hospitality
industry by kishor chandra sahoo, kakuloor rohith sai goud, sandeep kumar
vadlakonda, kathi sai vardhan, journal of tourism challenges and trends, volume
11, 2018.
5. Online marketing and consumerpurchase behaviour: a study of nigerian firms by
j. Gabriel published 2015

6. A study on impact of online advertising on consumer behavior (with special


reference to e -mails) by srivastava priyanka. Published 2012

7. Digital marketing strategy in promoting product by •imelda christina, fenni,


devia roselina published 2019

8. Impact of online advertising on consumer attitudes and interests buy online


(survey on students of internet users in makassar) by muhammad ali aqsa, dwi
putri kartini. Published 2015

9. Online advertising and its impact on consumer buying behavior by gaurav


bakshi , dr. Surender kumar gupta volume 3, issue 1 (february 2013)

10. Impact of online advertisements on students and professional employees: a


research on consumer behaviour by ramesh babu kakumanu. International
journal on customer relations; new delhi vol. 1, iss. 2, (2013)

http://aishe.nic.in/aishe/viewDocument.action;jsessionid=0ADDE1D7AC43FD7D99689D51D47158
25?documentId=262

You might also like