BUSINESS ANALYTICS

INTERNALASSESSMENT

Title: “Analysis on Social media marketing and Influencer

marketing strategies used by companies that impact the
purchasing intent of Generation Z.”

NMIMS BBA Semester: V Section: Mktg B

Name:
Aarit Shah U275

1
INDEX

Sr no. Title Page

1. Abstract 3

2. Introduction 3-5

3. Literature review 5-7

4. Methodology 7-8

5. Data collection Process 8-9

6. Theoretical Framework 10-13

7. Research Findings 14-17

8. T-test Analysis 17-22

9. Conclusion 22-23

10. Limitations of the study 23

11. References 24

1. ABSTRACT

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One of the best ways to connect with and engage Generation Z consumers is
through social media marketing and influencer marketing. The only generation
to have grown up with social media, Gen Z is highly skilled at using it to find
new products and companies. Influencers have a stronger impact on Gen Z
since they are perceived as real, relevant peers.

Companies can directly affect Gen Z consumers' purchasing intentions in

several ways by utilizing social media marketing and influencer marketing. For
instance, they can use social media to spread the word about their businesses
and products, share gratifying feedback, and provide exclusive deals and
promotions to their fans. They can also work with influencers to produce
sponsored content that more effectively and authentically promotes their goods
and services.

The many social media marketing and influencer marketing tactics that
businesses employ to connect with, and sway Gen Z consumers will be
examined in this research study. It will also look at how these tactics affect Gen
Z's intention to buy.

2. INTRODUCTION

2.1 In recent years, social media marketing and influencer marketing have
grown in popularly as businesses look for more genuine and interesting ways to
interact with their target consumers. This is especially true for Generation Z
consumers, a group of buyers who are more likely to believe peer
recommendations than traditional advertising.

The first generation to have social media and the internet permeate every aspect
of their lives is Generation Z. They are quite tech aware and utilize social media

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to keep in touch with loved ones, learn about new goods and services, and pass
the time. They are therefore a top target for businesses that employ influencer
marketing and social media marketing techniques.

Utilizing social media sites like Instagram, TikTok, and Twitter to engage with
and connect with clients is known as social media marketing. Utilizing social
media, businesses can communicate with customers directly, run promotions
and contests, and post content about their goods and services.

Working together with people who have a sizable and active social media
following is known as influencer marketing. These influencers can help a
business advertise to their following about its goods or services. As Generation
Z consumers are more likely to believe suggestions from people, they perceive
to be genuine and relevant, influencer marketing can be a very effective strategy
for reaching this demographic.

Research problem – To analyse whether social media marketing tactics and

influencer marketing tactics used by companies have a direct impact on the
purchasing intent of the consumers.

Objectives of the study:

1. To analyse whether social media marketing tactics have a direct impact

on the purchasing intent of the Gen Z consumers.
2. To analyse whether Influencer marketing tactics have a direct impact on
the purchasing intent of the Gen Z consumers.
3. To understand the factors influencing the purchasing intent of the Gen Z
consumers.

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 4. To identify the most effective social media platforms and content types
for reaching Generation Z consumers.

2.2 Keywords that are used to describe the findings of the research paper:

1. Social Media Marketing

2. Influencer Marketing
3. Generation Z
4. Purchasing Intent
5. Digital Marketing
6. Consumer Behaviour
7. Online Engagement
8. Brand Influence
9. Social Media Platforms

3. LITERATURE REVIEW
Generation Z, born between the mid-1990s and mid-2000s, represents a
significant consumer demographic with unique characteristics and preferences.
Their reliance on social media platforms for information and entertainment has
made them a prime target for marketing efforts. This literature review aims to
analyse the strategies employed by companies in the realms of social media
marketing and influencer marketing to directly influence the purchasing intent
of Generation Z.

The research paper summaries that follow are studies that support this research
report and serve as an introduction to this study:

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3.1 Research paper 1

“SOCIAL MEDIA INFLUENCER MARKETING: A SYSTEMATIC

LITERATURE REVIEW”

The study realises that there is a necessity to conduct a systematic literature

review available on social media influencers.

This study provides an overview of the trends and themes covered by relevant
literature such as the role of social media influencer in buying behaviour, the
impact of social media influencers on firm’s image and performance, and
highlights the domains where influencers play a significant role.

3.2 Research paper 2

“SOCIAL MEDIA INFLUENCER AND BRAND LOYALTY ON

GENERATION Z: THE MEDIATING EFFECT OF PURCHASE
INTENTION”

This study aims to investigate the effect of influencers on brand loyalty of

Generation Z with purchase intention as a mediating variable.

The marketers believe that implementing influencer marketing appropriately

may form a positive customer view of a product or brand so it can bring
customers loyalty on the brand.

The result show that social media influencers can influence generation Z brand
loyalty and purchase intentions are able to mediate social media influencers and
generation Z brand loyalty.

3.3 Research paper 3

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“Role of Social Media Marketing Activities in Influencing Customer Intentions:
A Perspective of a New Emerging Era”

The aim of this study is to explore social media marketing activities (SMMAs)
and their impact on consumer intentions (continuance, participate, and
purchase). This study also analyses the mediating roles of social identification
and satisfaction.

Results show that SMMAs have a significant impact on the intentions of users.
Furthermore, social identification mediates the relationship between social
media activities and satisfaction, and satisfaction mediates the relationship
between social media activities and the intentions of users. This will help
marketers how to attract customers to develop their intentions.

4. METHODOLOGY

4.1 In this study, we combined statistical tools with research methodologies to

analyse the replies gathered from respondents. These techniques gave us a
thorough comprehension of the data and made it possible for us to derive
valuable insights. The methods used were as follows:

1. Visual and graphical representations: Our team utilized this method to

compile and display the dataset's key characteristics.
2. T-test method: A t-test is a statistical test that compares the means of two
groups. It is often used in hypothesis testing to determine whether a
process or treatment influences the population of interest, or whether two
groups are different from one another.

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4.2 JUSTIFICATION ON USING THE ABOVE METHODOLOGIES

1) The Visual and Graphical representations gave an overview of the

demographics.
2) T-test method was used to compare the means of two different data
groups.

5. DATA COLLECTION PROCESS

The data collection process involved circulating a Survey with the help of
Google forms. Google forms were used as a medium of platform because of
reasons as below:

- Ease of use.
- Mobile friendly.
- Customizable and ease of circulation.

The survey was shared among the target audience (Gen Z) to get responses
which were an integral part of formulating this research paper.

Following steps were carefully considered while designing the questionnaire.

1. Simple and Direct Questions: We carefully crafted the survey

questions to be simple, direct, and pertinent to the study's goals.
This reduced ambiguity and raised the standard of the responses.
For the sake of making, it simple for every respondent to read, we
chose simple terminology and grammar.
2. Pilot Testing: To find and address any potential difficulties with
the survey instrument before the official release, we carried out a

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 pilot test within our organization, using those who were engaged
on various projects.
3. Anonymity and Confidentiality: Respondents were given the
assurance that their answers would be kept private, which
promoted candid feedback.
4. Response Validation: To ensure accurate and consistent responses,
we incorporated data validation tests within Google Forms.
5. Ethical Considerations: Adhere to ethical guidelines for research,
particularly in studies involving human subjects. Obtain informed
consent and follow ethical review board approvals as needed.
6. Data Analysis Transparency: Clearly describe the data analysis
procedures, including statistical methods and software used. Report any
assumptions, limitations, or potential biases in our data. Providing a step-by-
step account of our analysis process for reproducibility.

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6. THEORITICAL FRAMEWORK

6.1 Social Media Marketing Tactics

Social media marketing has developed into a crucial component of every

company's marketing plan. It enables companies to establish relationships with
their target market and market their goods and services.

Over time, as companies become more adept at using social media, social media
marketing strategies changed. Among today's most popular strategies for social
media marketing are:

1. Create and distribute useful information, such as blog posts, articles,

infographics, and videos, to draw in and keep the attention of potential
customers.
2. Social media advertising: Using paid advertisements on social media sites
to promote goods or services to a larger audience.
3. Social media engagement is the act of interacting with followers there by
answering their comments and queries, taking part in discussions, and
holding freebies and contests.
4. Social listening is the process of keeping an eye out on social media for
mentions of your company, its goods, and related topics to gain more
insight into your audience and spot opportunities to interact with them.

6.2 Influencer Marketing Tactics

The rise of influencer marketing strategies and customer purchase intent are
closely tied. Influencers are people who have a significant and active social
media following and have developed a reputation for their knowledge and

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experience on a certain subject. Influencers and brands collaborate to promote
one other's offerings to each other's audiences.

When someone they respect and trust recommends a product or service,

consumers are more inclined to buy it. Being genuine, open, and relatable helps
influencers gain the audience's trust. Additionally, they can speak from personal
experience about goods and services, which has the potential to be more
persuasive than conventional advertising.

6.3 Research Problem

With the help of this research paper, we intend to address to issue whether social
media marketing tactics as well as Influencer marketing tactics directly
influence the purchase intent of Generation Z.

6.4 Factors influencing the purchasing intent of the Generation Z.

6.4.1 Social Media Marketing Tactics

The first generation to develop with social media as a major aspect of daily life
is Generation Z. They are more likely to be impacted by social media than
earlier generations because they are more social and active online.

Here are some elements that affect Generation Z's intention to buy when a
business employs social media strategies:

6.4.1.1 Genuineness

Gen Z customers can recognize fraudulent and untrue stuff a mile away. They
look for openness and sincerity in the brands they support. Businesses must
participate authentically on social media platforms and produce content that
speaks to and engages with their target market.

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6.4.1.2 Creating engaging and informative content.

Gen Z consumers are constantly being inundated with information, so it's

crucial to produce content that is both attention-grabbing and educational. To
engage their target audience, businesses can employ a range of content types,
including videos, infographics, and interactive tales.

6.4.1.3 Run social media contests and giveaways.

Contests and giveaways are one of the means to increase engagement level on
social media.

6.4.1.4 Convenience

Gen Z customers value convenience. They want to be able to swiftly and simply
shop and research things online. Businesses must make sure that their social
media platforms are easy to use and that their websites are mobile-friendly.

6.4.2 Influencer Marketing tactics

Generation Z is the first generation to grow up with social media and

influencers, so they are more likely to be influenced by their favourite
influencers' purchase recommendations. Here are some of the factors
influencing purchasing intent of Generation Z while a company is using
influencer marketing tactics:

6.4.2.1 Expertise

Gen Z consumers also value expertise, so they are more likely to be influenced
by influencers who they see as experts in their field. Companies should work
with influencers who have a deep understanding of their products and services
and who can create informative and educational content.

6.4.2.2 Create long-term partnerships with influencers.

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For Gen Z consumers, long-term relationships with influencers are important
since they are more likely to trust them. Instead of just doing one-off initiatives,
businesses should concentrate on creating long-term connections with
influencers.

6.4.2.3 Transparency

Gen Z customers respect openness and authenticity, they are more likely to be
persuaded by influencers that come across as real and approachable. Companies
should select influencers who will provide authentic content that appeals to Gen
Z consumers and who are a good fit for their brand.

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7. RESEARCH FINDINGS

The form`s responses showed that 2% who filled in the form belonged to the age group 22-
24, 66.2% belonged to the age group 19-21, 17.9% belonged to 25-45 and the remaining
belonged to age group 18 or younger.

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73% (11 respondents) of our total respondents use social media apps like
Instagram and YouTube for advice products like clothes, cosmetics, etc.
Generation Z is active on several social media sites, each with its own user base
and content structure. Companies must select platforms that are compatible with
their target audience and product/service. Instagram and TikTok, for example, are
popular channels for visual material among Gen Z, although Twitter may be more
successful for news and trends. Example: A fashion brand targeting Gen Z might
prioritize Instagram and TikTok for their visually appealing content and high
engagement rates. Whereas for a tech product the company might want to
advertise on YouTube.

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Our respondents have stated that they tend to try and purchase products
recommended by their favorite influencers on social media due to their good
image. Choosing the right influencers is crucial. Companies should choose
influencers who share the interests and beliefs of Generation Z. For specialty
products or services, micro-influencers with a niche following may be more
effective than macro-influencers.
Encouraging Gen Z to develop UGC linked to a brand or product can have a
significant influence. User-generated material not only fosters a sense of

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community, but it also offers genuine recommendations. As a part of the research
and previous literature review it was found out that there is a positive relationship
between engagement and UGC.

8. HYPOTHESIS TESTING

T-TEST

A t test is a statistical test that is used to compare the means of two groups. It is
often used in hypothesis testing to determine whether a process or treatment
actually has an effect on the population of interest, or whether two groups are
different from one another.

8.1 To prove whether Direct Social media marketing tactics have a positive
relationship with purchasing intent among Generation Z.

To prove the hypothesis, 2 groups have been formulated.

The first group would be in the age category of the term “Gen Z” who buy
products while being directly exposed to social media marketing tactics.

The second group would be in the age category of the term “Gen Z” who buy
products while not being exposed to direct social media marketing tactics.

H0 = There is no relationship between direct social media marketing tactics and

purchasing intent among Generation Z.

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H1 = Direct Social media marketing tactics have a positive relationship with
purchasing intent among Generation Z.

8.1.1 The following is the data of group 1

8.1.2 The following is the data of group 2

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8.1.3 To prove the hypothesis T- test method will be used.

8.1.4 Analysis and Interpretation

We conducted a two-sample t-test to compare whether direct social media tactics

have a direct influence over Generation Z, between Group 1 and Group 2. The t-
statistic was 13.9856 with 23 degrees of freedom, and the p-value was
approximately 9.82707E-13 for a two-tailed test.

Our chosen significance level (α) was 0.05. Since the p-value (9.82707E-13) is
significantly less than α, we reject the null hypothesis and accept the alternate
hypothesis.

Hence, we conclude that Direct Social media marketing tactics have a positive
relationship with purchasing intent among Generation Z.

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8.2 To prove whether Influencer marketing has a positive relationship with
purchasing intent among Generation Z.

To prove the hypothesis, 2 groups have been formulated.

The first group would be in the age category of the term “Gen Z” who buy
products while being directly exposed to influencer marketing tactics.

The second group would be in the age category of the term “Gen Z” who buy
products while not being exposed to direct influencer marketing tactics.

H0 = There is no relationship between influencer marketing and purchasing

intent among Generation Z.

H1 = Influencer marketing has a positive relationship with purchasing intent

among Generation Z.

8.2.1 The following is the data of group 1

8.2.2 The following is the data of group 2

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8.2.3 To prove the hypothesis, the T- test method will be used.

The t-statistic was 13.8213 with 22 degrees of freedom, and the p-value was
approximately 2.5188E-12 for a two-tailed test.

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Our chosen significance level (α) was 0.05. Since the p-value (2.5188E-12) is
significantly less than α, we reject the null hypothesis and accept the alternate
hypothesis.

Hence, we conclude that Influencer marketing tactics have a positive relationship

with purchasing intent among Generation Z.

8.3 Overall Findings

• More than 50% of the sample size Occasionally buy products by being
influenced by social media marketing or Influencer marketing tactics.
• Instagram and YouTube are the most used social media apps by
Generation Z.
• Generation Z are more indulged in social media content such as memes,
review videos etc.

9. Conclusion

Companies can utilize influencer marketing and social media marketing as two
effective strategies to directly affect the purchasing intentions of Generation Z.
The most technologically adept generation to date, Generation Z, spends a lot of
time on social media sites. As a result, businesses may connect with this target
market by producing interesting content and working with appropriate
influencers.

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Brand exposure, lead generation, and sales can all be increased through the
usage of social media marketing. Social media may be used by businesses to
engage with new clients, tell their brand's story, and advertise their goods and
services. They can also hold prizes and contests on social media, which can
encourage participation and excitement.

A key component of influencer marketing is collaboration with people who

have a sizable social media following. You can leverage these influences to
market goods and services to your audience. Influencers' recommendations
increase the likelihood that their followers will make a purchase.

Businesses that wish to successfully engage Generation Z should think about

utilizing influencer marketing and social media marketing. These resources can
be applied to forge a personal connection with this target market and affect their
purchasing choices.

10. Limitations of the research paper

1. Limited Generalizability: Research papers is based on specific samples;

these sample may not represent the entire population of Generation Z
2. Time Sensitivity: The field of social media and influencer marketing is
rapidly evolving.
3. Changing Algorithms: Social media platforms frequently change their
algorithms and policies. These changes can significantly impact the
effectiveness of marketing strategies, making it difficult to draw
definitive conclusions.

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11. References

1. Glucksman, M. (2017). The Rise of Social Media Influencer

Marketing on Lifestyle Branding
2. Hermanda, A., Sumarwan, U., & Tinaprillia, N. (2019). The Effect of
Social Media Influencer on Brand Image, Self-Concept, and Purchase
Intention
3. Bashir, A. (2013). Consumer Behaviour Towards Online Shopping of
Electronics
4. Paakkari, A. (2016). Customer Journey of Generation Z in Fashion
Purchases

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