Capstone Project 2021-23

Phase 3 Report
Sem-III

Title of the Project:

Impact of Social Media on E-Commerce

Submitted by:

Name of Faculty Name of the

Guide: Vijay S Student: Amey
Karvande Hemant Khebade

Designation: Roll No:

20630021177
Program:
PGDM(Marketing
)
Batch: M3 – CKP
Semester: III
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Impact of Social Media on E-Commerce
 Institute for Technology and Management
Plot No. 25 / 26, Institutional Area,
Sector – 4,
Kharghar, Navi Mumbai

CERTIFICATE FROM THE FACULTY GUIDE

This is to certify that the Project Work titled …………………………………………………
……………………………………………………is a bonafide work carried out by

Mr./Ms,…………………………………………….
Roll No……………………………………………………….., a student of the PGDM program

2020 – 2022 of the Institute for Technology & Management, Kharghar, Navi Mumbai under my
supervision & guidance.

Signature of Guide :

Name of Guide: Dr/Prof. Vijay S Karvande

Designation: Assistant Professor/Associate Professor//Professor, ITM Kharghar

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Impact of Social Media on E-Commerce
Date: Place: Kharghar, Navi Mumbai

Abstract

Over the last decade, social media has gotten a lot of attention throughout the
world, and the emergence of new age social media like Facebook has given it
a new lease on life. Facebook, Twitter, LinkedIn, Instagram, and YouTube
are examples of social networking services that bring the entire world closer
to us. To be more specific, social media has become an integral part of our
life. E-commerce, on the other hand, has become one of the world's fastest
expanding industries. Especially since Amazon and Flipkart entered the
online market, life has been lot easier. It becomes very comfortable for
companies to reach the consumers easily and vice versa. The main objective
of this report is to highlight the impact of social media platforms on E-
commerce consumers and as well as E-commerce companies too.

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Impact of Social Media on E-Commerce
 Objective of the study

Learn how to Leveraging the power of social networks, to understand

how the businesses can now understand their customers better, reach
the masses, and strengthen their connections. Social media platforms
aim at improving the interaction between the clients and e-commerce
businesses instead of just educating them about profitable deals and
new product launches.

Learn how A part of the social media platforms allows direct selling
by utilizing a couple of social groups and communities.

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Impact of Social Media on E-Commerce
 ACKNOWLEDGEMENT

Execution of a project of this nature is impossible without active

support from the faculty guide and professors of the Institute. I
would like to express my sincere gratitude to my guide
Dr/Prof…………………………………… for his/ her guidance
during the entire project duration.

I also extend my sincere thanks to all those who directly and

indirectly helped me to complete the project.

Name of the Student ……… Signature of the Student……………

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Impact of Social Media on E-Commerce
6
Impact of Social Media on E-Commerce
 Content Page No.

Front Cover Page I

Certificate from the Faculty Guide II

Abstract III

Objective of the study IV

Acknowledgement V

Table of Contents VI- VII

Chapter 1 Introduction 8-28

1.1 Social networks and social media

1.2 Types of social media platforms

1.3 Social media marketing

1.4 Advantages of social media marketing

1.5 Uses of Social Media

1.6 E-Commerce

1.7 Types of E-Commerce

1.8 Uses of E-commerce

1.9 Online marketing and purchasing

1.10
Statistics and Facts of E-commerce

1.11
SWOT Analysis

Chapter 2 27-29
Literature Review

Chapter 3 30-34
Research Methodology

3.1
Types of Research methodology

3.2
Questionnaire

3.3 Research Design

3.4 Sampling Technique

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Impact of Social Media on E-Commerce
3.5 Sample Size

3.6 Data Collection

 Introduction

Interconnectivity between people has grown as a result of advancements in the

web and the advent of social media. This enhancement allows people and
organisations to collaborate online. This has evolved as a result of internet-
based life, which allows customers to create content and communicate with one
another via social media. Several social media platforms have pushed data
sharing. For example, Wikipedia, a free online reference book, is one of the
most well-known media and includes a data-sharing office where clients can
collaborate. Clients can survey and rate things on other platforms that have the
ability to make surveys and evaluations, such as Amazon.com.

Furthermore, people in these stages are quite dependant. Customers can make
valuable contributions and provide valuable advice to others by employing
internet networking. This new advancement has seen a development in web
networks and an electronic system of people on social media, where people
share material in an all-encompassing and speedy manner. With the growth of
social networks, a new era of content creation has emerged, in which people
may easily share encounters and data with different users. The next generation
of online businesses will be built on networks, which will be an effective tool
for attracting new customers. The executives' framework, for example, offers
access to another advancement where firms can boost performance, and on the
web networks provide a chance for associations to have a better client
interaction. Individuals can also become comfortable with one another on those
stages where shoppers have social collaboration, potentially providing a
wellspring of trust.

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Impact of Social Media on E-Commerce
This might have a significant impact on a client's desire to buy. As a result, it is
critical for businesses to establish a strategy that is tailored to social business.
Another type of web-based business is social business, which energises client
social connections through web-based social networking. Organizations might
become increasingly enticing all over as a result of internet-based live.
In later sections, I'll talk about the impact of social media on e-commerce
customers.

Social networks and social media

The term "social network" was originally used to distinguish between

networks that were used for business and networks that were used for
socialising. However, the most widely accepted definition of social networks
relates to interactive websites that give users with message boards, chat
rooms, and the ability to submit comments and have a debate with other
people, particularly in the workplace, universities, and high schools.
Alternatively, a virtual community website that brings individuals together to
speak, share ideas and hobbies, or make friends is referred to as a social
network. Social media refers to this form of collaboration and sharing on
social networking sites.Unlike traditional media that is typically created and
controlled by only a bunch of people, the social media allows users to share
their opinions, views and encourages interactions and community building
shaped by consumers.

The phrase "Social Media" was coined by combining the words "Social" and
"Media," which are defined as follows: The term'social' refers to engaging
with other individuals for the purpose of exchanging information and is
marked by amicable companionship or relationships. The term'media' refers
to any kind of communication that reaches a large number of people, such as
radios, television, newspapers, magazines, and the internet.
As a result, we can define social media as a web-based social communication
tool that allows people to communicate with one another through sharing and

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Impact of Social Media on E-Commerce
 consuming information. According to Safko and Brake, "social media" refers
to "activities, practises, and behaviours among groups of individuals who
gather online to share and exchange information, knowledge, and ideas via
communicational means."

Social media, according to Weinberg, refers to the sharing of information,

experiences, and viewpoints through community-oriented websites. Web-
based technology is used in social media to turn and broadcast media
monologues into social media discussions. Since the last decade, social
media has progressed from a simple communication hub to a change agent
that has influenced human behaviour and, as a result, changed people's lives.

Politics and public service

The introduction of personal computers revolutionised the way businesses were done.
From politics and public service to business and customer pleasure, social networks are
changing the demographics of our society. Non-profit organisations, environmental
campaigners, and political factions have all turned to Facebook to reach out to thousands
of potential volunteers. Almost every progressive politician makes use of Twitter to
promote their causes. People may now express their worries and thoughts, discuss their
ideas, and even communicate with political leaders on a one-on-one basis, thanks to social
media platforms.

Marketing and advertising

Marketing and advertising techniques have shifted from mass market channels like
television and radio to the social platform as a result of the introduction of social media.
Today, all big brands and organisations boast enormous fan bases and followers on major
social media platforms such as Facebook, Twitter, YouTube, and Instagram, among
others. Social media platforms are not only cost-effective, but they also bring the
producer and consumer closer together.

Journalism

People may quickly and easily share links and information with a huge number of people
via social media platforms such as Facebook and Twitter. Because they know that a
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Impact of Social Media on E-Commerce
 recommendation from a friend carries more weight, several news websites include a list
of news items recommended by their friends. On the other hand, social media has ushered
in a new era of citizen journalism. From traffic updates to natural disasters, everyone with
access to social networking sites is essentially a citizen journalist in only a few clicks.

Business

Today, almost every big corporation has a social media presence. Existing and new
businesses are now aggressively utilising social networking sites to market their products,
services, and obtain valuable client feedback. In fact, for businesses, social media
participation has practically become the de-facto norm for evaluating customer service.
Small or home-based enterprises that run purely through their Facebook pages have
become commonplace.

Types of social media platforms

The most commonly used social media platforms are

Facebook

In terms of both name recognition and total number of users, Facebook is the most
popular social networking site on the internet. It has almost 1.8 billion active users and
serves as a fantastic platform for connecting people all over the world with your
company. Facebook has evolved from a simple website to a multi-dimensional network
and mobile platform where anyone may communicate with anyone else across the world
in the previous decade. Keeping in mind Facebook's Pages feature, it can be quite
beneficial to one's business.

Twitter

Twitter is a social media platform where users may express themselves using short text
messages and other media. Twitter is a fantastic platform for communicating with
virtually anyone in the globe just by mentioning their usernames in postings. This social
networking platform is a fantastic tool to promote and market a company. It's also a good
way to handle customer service issues.

Instagram

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Impact of Social Media on E-Commerce
 Instagram is a visual social media website that only allows users to publish photographs
and videos. It is also owned by Facebook and differs from the competition in terms of the
various filters and photo editing capabilities available.

LinkedIn

LinkedIn is a social networking site devoted to professional and employment-related

services. LinkedIn allows people to create profiles in an online social network that can
depict real-world professional contacts, whether they are employees or employers.

Fig 1: Most Popular Social Networking Sites

The figure 1 shows the graph of top networking sites in the world as of
2022. As it is clearly visible, Facebook is leading the pack followed by
YouTube, whatsapp, Instagram

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Impact of Social Media on E-Commerce
Social media marketing

Social media marketing is the most recent trend to emerge in recent years,
when it began to dominate internet communication. It's a type of online
marketing that makes use of a variety of social media channels to reach
marketing and advertising goals. For the purposes of advertising, social
media marketing entails the sharing of content, videos, and photographs.
Businesses utilise a variety of marketing tactics to target the correct
audience, engage in consumer online brand activities, and spread electronic
word of mouth.

Advantages of social media marketing

The various advantages of using social media marketing are

• Social media posts can be used to bring targeted traffic to a specific
audience, and it can also be utilised to improve the SEO of a company's
website. Building traffic on a company's social media accounts will help
their websites rank higher in search engines.
• Social media may aid in the development of true producer-consumer
relationships, as tweets on Twitter and Facebook posts provide insight into

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Impact of Social Media on E-Commerce
 their consumers' everyday life, allowing them to develop stronger marketing
strategies.
• Because most users regard Twitter and Facebook as social media platforms
rather than advertising and marketing tools, they are more receptive to a
commercial proposition.
• The most significant benefit of using social media is brand recognition,
since the media becomes the brand's content and voice.

Uses of Social Media:

As in the modern world, which is more commonly referred to as a

technologically driven world. We live in a society where social media has
become an integral part of our everyday routine. There are numerous benefits
to using social media. Let's have a peek.

Communication:

The technologies used in the communication section are essentially a well-

known form of social media. These tools include blogs and websites where
you can create articles and web diaries to connect, communicate, illuminate,
and engage your audience. Individuals who visit your websites will be able
to leave comments. Other applications include social media sites such as
Twitter, Facebook, and Instagram, which increase the chances of contact
between people by using personal details, comments, pictures, videos, and
much more. People can form strong personal relationships with one another

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Impact of Social Media on E-Commerce
 with the help of these stages. Organizations can effectively communicate
with their audiences.

Collaboration:
The majority of us use a variety of tools that have a social component to
them, and we use these gadgets on a regular basis. Let's look at an example.
Do you know what Wikipedia is? All things considered, it is a stage of
information that allows people to refresh their perspectives. It is simply a
web-based reference book that can be accessed and updated by anyone.
There is also a model known as Google Docs, which allows users to edit and
share documents extensively over the internet. With the help of this
community-oriented device, you will also be able to download and transmit
records. It's known as online networking since it allows several users to share
a single platform. Various people can work together in the most tailored and
result-oriented way possible to achieve normal results in a highly
coordinated manner.

Brand Monitoring:

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Impact of Social Media on E-Commerce
 Currently, brand monitoring gadgets are not the ones that everyone thinks
about, but they are undeniably important. Brand monitoring systems are used
by all purchaser brands and organisations that control the open to understand
what is being discussed with their brands and organisations. With the help of
web-based existence, this kind of essence in the online world is possible.
These devices are invaluable when it comes to compiling all of the inputs
and comments regarding a given firm. Social media's uses are tremendous in
terms of allowing you to see what people are saying about your business,
product, or service. This will also enable you to manage the online reputation
of your image.
Indeed, if someone is disparaging your image online, you may quickly
address the problem, ensuring that your online reputation is unblemished.

Entertainment:
Well, the gaming industry was never completely reliant on social media
networks, but it is today. On social media sites, games like Farmville and
Mafia Wars are popular. In addition, the entertainment sector is completely
reliant on social networking sites. Take, for example, entertainment-related
websites. Because of the widespread use of social media, there are numerous
outlets that promote live entertainment. These websites not only improve
people's contact, but they also keep them entertained. Different social media
portals are also used to advertise movies and television series.
Social media networks are used to launch television shows. Businesses also
produce a range of entertainment videos to inform, entertain, and engage
their audiences.

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Impact of Social Media on E-Commerce
Media Sharing:

YouTube is, without a doubt, one of the most well-known and well-
recognized sites for sharing material. This site, which has more than 500
million users, is now on the top of the list because of the amazing services it
provides to its customers. Vimeo is another platform that facilitates the
sharing of media. These are also the sites that assist people in creating
channels and forming connections with one another. There are quite a few
websites that can assist with music sharing. Locales such as Spotify and
others come with explicit highlights of sharing music, which is good with
most people. We now have the ability to download and transfer media
content without difficulty thanks to web networking.

Advertising:

Paid adverts on numerous web-based social networking entrances are also

really effective for internet-based life jobs. You may run paid promos on
social media networks like Facebook, LinkedIn, Twitter, Snapchat, Pinterest,
and others. Social media channels today have a large audience base on which
you can demographically target to increase the online visibility of your brand,
product, and services. You may also monitor the progress of your paid
promotion campaigns and adjust your strategy as needed to achieve better
results. Online life promotions are also really reasonable, and you will see
evidence of increased returns on your investments. Paid adverts will display to
your target interest groups, assisting in lead generation and transformation.

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Impact of Social Media on E-Commerce
E-Commerce:
Ecommerce, often known as electronic trade or web commerce, is the buying
and selling of goods and services through the internet, as well as the
exchange of money and information required to complete these transactions.
Ecommerce refers to the sale of actual goods over the internet, but it can also
refer to any type of business transaction that takes place over the internet.
While e-business encompasses all aspects of running an internet firm, E-
commerce specifically refers to the exchange of goods and services.
The first ever online sale took place on August 11, 1994, when a guy sold a
CD by the band Sting to a friend using his website Net Market, an American
retail platform. This is the first instance of a consumer purchasing a product
from a business over the Internet, or "ecommerce" as it is currently known.

Global retail ecommerce sales are projected to reach $5.5 trillion by 2022.

Types of E-Commerce:

There are 5 types of E-Commerce

 Business to Consumer (B2C)
 Business to Business (B2B)
 Consumer to Consumer (C2C)
 Consumer to Business (C2B)

B2C (Business to Consumer) refers to when a company sells a product or

service to a single customer (for example You purchase a dress from an
online retailer).

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Impact of Social Media on E-Commerce
 Business to Business (B2B): When one company provides a good or service
to another company (for example, a bank). A company sells programming as
a service for other companies to use.)

Consumer to Consumer (C2C): When one client provides a product or

service to another customer (for example You sell your old vehicle on Olx to
another buyer).

Consumer to Business (C2B): When a customer sells their own products or

services to a company or organisation (for example An influencer offers
presentation to their online crowd in return for an expense, or a picture taker
licences their photograph for a business to utilize)

Top E-commerce sites in India

 Amazon India
 Flipkart
 Myntra
 IndiaMART
 Book My Show
 Nykaa.
 Snapdeal

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Impact of Social Media on E-Commerce
 FirstCry
 1mg

And many more companies which are growing in a rapid speed in E-

Commerce sector in India.

Uses of E-commerce:

As in the modern world, which is more commonly referred to as a

technologically driven world. We live in a society where e-commerce plays a
significant role in our day-to-day lives. E-commerce has numerous
advantages. Let's have a peek.

Online marketing and purchasing:

Web and E-business allow for the collection of data about customer
behaviour, preferences, demands, and purchase habits. This aids promoting
exercises such as value fixation, exchange, item highlight upgrading, and
client relationship.
Retail and discount:

In the retail and discount industries, web-based business offers a variety

of uses. E-retailing, often known as online retailing, is the sale of goods
from a business to a consumer using electronic storefronts that are
designed around an electronic inventory and shopping basket paradigm.

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Impact of Social Media on E-Commerce
 Cybermall is a single website that offers a variety of products and
services in a single online location. It uses a Web software to bring the
client and the merchant together in one virtual location.

Finance:
The use of E-trade by financial institutions is extensive. Clients can use on-
line banking or E-banking to monitor the balances of their reserve funds and
advance accounts, transfer money to another account, and pay their bills. On-
line stock trading is another application of E-business. Several websites
provide news, summaries, information about the company's profile, and
analyst ratings on the stocks.

Manufacturing:

Online business is also applied in an organization's gracefully chained tasks.

A few businesses set up an electronic trade by combining the purchase and
sale of goods, the interchange of display data, and the management of back
office data, such as stock control. This ranks the progress of raw materials
and finished goods among the members of the business network. The use of
plans of action is limited by a variety of concerns associated with critical and
serious issues. Organizations may be hesitant to trust their competitors and
fear losing exchange-privileged information if they participate in huge
electronic trading.

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Impact of Social Media on E-Commerce
Statistics and Facts:

Statistics and Facts of Social Media:

India has embraced the internet with zeal, and its computerised population
has grown rapidly in the last decade, with over 680 million active internet
users. What began as simple email correspondence has evolved into a digital
universe, with social networking sites such as Google, Facebook, and Twitter
becoming a part of many Indians' everyday lives. Orkut was one of the
country's earliest and largest long-range social networking sites, owned by
Google and named for the employee who created it. It was one of the most
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Impact of Social Media on E-Commerce
 visited sites in the country in 2008 until its closure in 2014. For all intents
and purposes, this did not stop Indians from socialising — the country just
switched to Facebook. Starting in 2020, India had around 300 million
Facebook members, making it the most populous country on the planet.

As internet packages become more affordable and internet becomes more

widely available, more Indians are embracing the electronic lifestyle.
Simultaneously, cell phones are increasingly becoming the primary display
for Indian customers. Indeed, it looks that India skipped the work area era
entirely and moved straight to versatile. In 2019, an astounding 99 percent of
India's provincial Internet users primarily used cell phones to access the
internet, indicating that smart phone applications are a burgeoning
commercial area in the country. Indians, being a sociable people, adore
social networking apps. India has the world's highest number of downloads
of WhatsApp and Tik-Tok smartphone applications in 2020. The average
web user in the country spends more than three hours each day on web-based
networking media. Furthermore, a large portion of this clientele was made up
of recent college graduates and Generation Z. In 2018, more than 73 percent
of Facebook clients in India were somewhere in the range of 18 and 24 years
old.

Apart from long-distance social networking tools, video streaming services

such as YouTube are well-known in India. With the Indian Premier League
blooming in 2010, YouTube usage in India skyrocketed, with more than two
billion views per day. From then on, this obviously increased with each IPL
season. Around the same time, T-Series, a relatively unknown (to the outside

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Impact of Social Media on E-Commerce
 world) Indian music label, was steadily but unflinchingly expanding on
YouTube by distributing old Bollywood and Indian popular music.
The substance took off, and T-Series is now the most watched and purchased
YouTube channel on the planet. According to estimates, there would be just
over 450 million informal organisation clients in the country by 2023, up
from just over 326 million in 2018. This rapid expansion in the division has
also boosted the public relations industry. The computerised advertising
sector in India is valued more than 160 billion Indian rupees today, and it is
expected to grow to 560 billion rupees by 2023.

Statistics and Facts of E-commerce:

The Indian E-business industry has been growing at a rapid pace, and it is
expected to overtake the United States to become the world's second largest
E-commerce market by 2034. The E-trade market is expected to reach Rs
13,97,800 crore (US$ 200 billion) by 2027, up from Rs 2,69,076.5 crore
(US$ 38.5 billion) in 2017, thanks to rising pay and a surge in web users.
India's online clients reached 120 million in 2018 and are expected to reach
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Impact of Social Media on E-Commerce
 220 million by 2025. Out of nearly 100,000 pin numbers in the country,
online businesses deliver to 15,000-20,000. In 2019, it was estimated that
one out of every three Indians shopped on their phone.

A substantial portion of the company's growth has been fueled by the

expansion of web and mobile access. Cell phone users are expected to reach
859 million by 2022, while the E-commerce sector is expected to rise 1,200
percent by 2026. Mobile phone shipments in India increased 8% year over
year to 152.5 million units in 2019, making it the world's fastest growing
commercial sector among the top 20 cell phone markets.
In India, web infiltration grew from 4% in 2007 to 52.08 percent in 2019,
with a CAGR of 24% between 2007 and 2019. The number of internet users
in India is expected to rise from 687.62 million in September 2019 to 829
million in 2021.

This division's main drivers are a younger segment profile, increased web
infiltration, and comparatively superior financial execution. The Government
of India's policies and administrative frameworks, such as 100 percent
Foreign Direct Investment (FDI) in B2B E-commerce and 100 percent FDI
in a programmed course under the commercial centre model of B2C E-
business, are expected to help the sector grow. According to the new FDI
strategy, online elements cannot sell things that are sold by shops in which
they have a value share through an outside venture.

The government released the Draft National E-Commerce Policy in February

2019, which encourages foreign direct investment in the commercial centre

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Impact of Social Media on E-Commerce
 model of E-business. It further states that the FDI policy for the E-business
industry was developed to ensure a level playing field for all participants.
According to the proposal, for E-commerce sites and applications to work in
India, an enrolled element is essential. The Indian government also suggested
the National E-business Policy to establish a legal framework for cross-
border information flow, stating that no information will be shared with other
governments without prior approval from the Indian government.

The government's Digital India project, as well as the overnight

demonetization of certain currency notes in November 2016, accelerated
digitization. Although the latter created tremendous economic disruption and
chaos in the weeks following the announcement, the shortage of currency
made digital use, particularly for payments, explode. Due to home
confinement measures, the economic effects of the coronavirus (COVID-19)
lockdown from late March enhanced the adoption of online payments in
2020.

The Indian government hopes to create a trillion-dollar internet economy by

2025 as part of its Digital India campaign.

SWOT Analysis

STRENGTHS WEAKNESSES
 Lucrative brand loyalty  Psychological Impact
 Engagement with customer  High customer expectations
 Marketing - advertising is cost-effective  Low margins

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Impact of Social Media on E-Commerce
 with high ROAS  Trust

 Low level entry barriers

OPPORTUNITIES THREATS
 24/7 availability  Rapidly evolving technology
 Global Reach  Fierce competition
 Better Customer Targeting  Authenticity concerns
 E-commerce growth  Increase of B2C on social media
 Social Media E-commerce Integrations  Fraud
 Branding  Privacy concerns
 Awareness

 Better customer service

By conducting we understand that with social media we can advertise our brand
and services at an effective cost with a high return on advertisement spend and
with a low barrier entry into social media it's simpler for new start-ups and
businesses to grow. But they have to consider the weakness such as Psychological
impact- the absence of direct interaction between the customer and seller affects
decision making. HIGH CUSTOMER EXPECTATIONS - Some consumers
expect the same level of service from small businesses (1-4 employees) and
industry giants like amazon.com, as the result it leads to customer dissatisfaction.
Also the margin on products remains slim due to presence of major small scale and
big competitors who are undercutting the margins and profits. Trust is also a major
look out for any brand Trust of customer while buying though social media is the
most important aspect. Social Media does allow companies and brand to increase
awareness about brands and also branding and make brands trustful and faithful.
The major issue of social media is increasing fraud activity Some consumers have
concerns about fraud and misuse of their financial data. This fact forms a whole
segment that is not likely to do business or make purchases via the Internet.
Considering the growth of e-commerce and the amount of tax revenue lost to it, the
government could write legislation to impose a tax on all online sales. This would
remove one incentive to conducting business online.
Literature Review:

A literature review, often known as a narrative review, is a type of review

paper. A literature review is a thought-provoking article that summarises
current knowledge, including significant discoveries as well as hypothetical
27
Impact of Social Media on E-Commerce
 and methodological contributions to a certain area. A literature review is a
collection of secondary materials that does not report on fresh or original
research. Such audits, which are frequently associated with intellectual
writing, can be found in scholarly journals and should not be confused with
book reviews, which can also appear in a similar distribution. In almost
every academic discipline, a literature review is a justification for study. A
thin extension writing audit might be incorporated as a component of a friend
explored diary article introducing new exploration, serving to arrange the
current investigation inside the body of the important writing and to give
setting to the pursuer. In such a case, the survey for the most part goes before
the strategy and results in segments of the work.
I have collected some research papers and journals and done analysis.

The review of these papers is as follows:

A study of the impact of social media on consumers by M. Nick Hajli

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Impact of Social Media on E-Commerce
 In this research paper, the author discussed about multidisciplinary model,
building on the technology acceptance model and relevant literature on trust
and social media. The model has been validated by SEM-PLS, demonstrating
the role of social media in the development of e-commerce into social
commerce. The data emerging from a survey show how social media
facilitate the social interaction of consumers, leading to increased trust and
intention to buy.

https://www.lyfemarketing.com/wp-content/uploads/2015/05/Compressed-
PDF.pdf

The Role Of Social Media As A Platform For E-Commerce By Vaasan

Ammattikorkeakoulu

In this research paper, the author discussed the awareness and usage patterns
of social media tools to users, to establish if social media has reduced firms
operating cost and to analyse the impact of social media on customer
relationship. In addition, this research revealed that e-commerce has brought
about a reduction in distribution costs through the elimination of
intermediaries. It also revealed that the multi-media nature and real-time
capabilities of the internet have fostered an environment that is conducive for
relationship building between firms and their customers.

https://docplayer.net/80907808-The-role-of-social-media-as-a-platform-for-
e-commerce.html
The Impact of Social Media on E-Commerce Decision Making Process by
University of Economics in Bratislava

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Impact of Social Media on E-Commerce
The authors of this article demonstrate how social media influences e-commerce
decision-making by first reasoning on theoretical concepts about online
customers' behaviours and the factors that influence their purchasing decisions,
and then by illustrating useful statistics that show how social media marketing
has grown exponentially over the last decade.

http://68.183.220.147/index.php/journal/article/view/128/55

RESEARCH METHODOLOGY
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Impact of Social Media on E-Commerce
The methodology is generally a guideline system for solving a problem, with
specific components such as phases, tasks, methods, techniques, and tools.
Research methodology is the way to systematically solve the research problems.
In simple words, it describes the way the research has been carried out. It
includes overall research design, setting objectives, the format for data
collection, the data collection method, the sample design, the various tools and
techniques used to present the data, and last but not least the analysis procedure.
In the case of the present study, we are studying “Impact of Social Media on E-
Commerce”

Types of Research methodology:

Types of research methods can be broadly divided into two quantitative and
qualitative categories.

Quantitative research “portrays, induces, and settles issues utilizing numbers.

Accentuation is put on the assortment of numerical information, the rundown of
those information and the drawing of inductions from the information"

Qualitative research, then again, depends on words, sentiments, feelings, sounds

and other non-numerical and unquantifiable components. It has been noticed
that "data is viewed as subjective in nature on the off chance that it can't be
examined by methods for numerical strategies. This trademark may likewise
imply that an episode doesn't occur regularly enough to permit dependable
information to be gathered"

Methodological Approach:

My research topic is “Impact of Social Media on E-Commerce”. Social media

plays a key role in influencing e-commerce consumers in many ways. Many E-
commerce companies use social media platforms for advertisements about the
products, brands according to interest, and preference of consumer. According
to the data 70-80 of the business people are using Social media platforms for
advertisements. And also 80% and above consumers are being influenced by
social media platforms in buying products from e-commerce sites.

Research Design
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Impact of Social Media on E-Commerce
Descriptive study has been used which is carried out to describe accurately
the characteristics of an individual, or group, or a particular situation. A
descriptive study is one in which information is collected without changing
the environment. In human research, a descriptive study provides information
about the naturally occurring health status, behaviour, attitude and other
characteristics of a particular group. Accuracy is the best benefit of this type
of study as most of the social researches are done under this category.
Therefore, descriptive study eliminates biasness and maximizes reliability

Sampling Technique

For this study probability simple random sampling technique is used. A

probability sampling method is any method of sampling that utilizes some
form of random selection. In order to have a random selection method, you
must set up some process or procedure that assures that the different units in
your population have equal probabilities of being chosen.

Sample Size

In this project, Navi Mumbai is considered as population whereas Kharghar

is considered as sample. My project sample size is 113 approx. by using
random sampling method.

Data Collection
Data collection is any process of preparing and collecting data, for example,
as part of a process improvement or similar project. The purpose of data
collection is to obtain information to keep on record, to make decisions about
important issues, or to pass information on to others.

I have used both primary data and secondary data for the study.

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Impact of Social Media on E-Commerce
Primary data:

 The primary data has been directly collected by Questionnaire.

 It was floated among several people. Structured, non-disguise
questionnaire was prepared.

Secondary data:
 The secondary data for this study has been collected from various
publications,
 Journals, Magazines , books and online sites.

Method of data collection:

a questionnaire was sent to various people with a request to answer the

questions and submit the questionnaire. The questionnaire consisted of a
number of questions
typed in a definite order

I have used both primary data and secondary data for the study.

Primary data:
 The primary data has been directly collected by Questionnaire.
 It was floated among several people. Structured, non-disguise
questionnaire
was prepared.

Secondary data:
The secondary data for this study has been collected from various
publications,
Journals, Magazines, books and online sites

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Impact of Social Media on E-Commerce
 Questionnaire

1. Your Name-

2. Your Gender-

3. Are you aware of the various Social Media Sites?

 Yes
 No

4. How much time do you spend on social media?

 Less than 30 minutes
 30 minutes to an hour
 1-2 hours
 3 or more hours

5. Does the online visibility of a business affect your purchase?

 Yes
 No

6. Do you currently follow any businesses on social media?

 Yes
 No

7. Do you believe that business will achieve better results when it comes to customer
loyalty and profits if social media is integrated into marketing?
 Yes
 No

8. How often do you flip through these sites?

 1-2 Times
 3-4 Times
 5-6 Times
 more than 6 times

9. Are you aware of the various online shopping sites?

 Yes
 No

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Impact of Social Media on E-Commerce
 10. Do you prefer online buying?
 Yes
 No
 Sometimes

11. What made you prefer online buying?

 Advertisements
 Family
 Friends
 any other (please specify)

12. Does Social Media impact your online buying preferences?

 Strongly Disagree
 Disagree
 Partially Agree
 Strongly Agree
 Agree

13. Social media usage creates an opportunity for customers to interact with the firm
 Maybe
 Yes
 No

14. Why do you prefer online buying?

 Easy availabilty
 Variety
 Pricing
 Others

15. What is your opinion regarding EFFECTIVENESS OF SOCIAL MEDIA ON THE

PROCESS OF E-COMMERCE

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Impact of Social Media on E-Commerce
Data Collection, Analysis & Interpretation

The survey found that 70% of respondents were men, 25% women, and 5% preferred not to
answer.

According to a recent survey, 92.2% of people are aware of social media sites. The rest are
not sure.
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Impact of Social Media on E-Commerce
According to a recent survey, nearly half of all people (47%) spend at least 1-2 hours online
every day, with 33% spending 3 hours or more. Only 15.7% of people said they spend 30
minutes or less each day, while the rest said they spend less than 30 minutes online.

According to our latest survey, 78.4% of respondents reported spending the most time on
Instagram, while 39.2% said they used Facebook the most. Twitter came in at a close third
with 35.3%, and the remaining 19.6% said they were most active on Reddit.
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Impact of Social Media on E-Commerce
According to a recent survey, 72.5% of people prefer shopping from Instagram ads, while
39.2% said they prefer shopping from Facebook ads. 9.8% of respondents said they prefer
shopping from ads on Reddit, and the remaining 5.9% said they prefer shopping from ads on
Twitter.

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Impact of Social Media on E-Commerce
As per a survey, 31.4% of people face difficulty making payments, 21.6% face internet
connectivity issues, and 66.7% feel that social media is unsecured.
According to a recent survey, 70.6% of people follow businesses on social media. However,
21.6% don't follow businesses on social media, and the rest (7.8%) are unsure.

According to a recent survey, the majority of respondents (80.4%) believe that businesses can
achieve better results in terms of customer loyalty and profits if social media is integrated
into marketing. 11.8% of respondents were unsure about this, while the rest did not agree.

This suggests that integrating social media into marketing could be a beneficial strategy for
businesses to pursue, in order to improve their chances of success. However, further research
is needed in order to confirm this theory.
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Impact of Social Media on E-Commerce
According to the survey, 35.3% of people browse through these websites 1-2 times a day,
35.3% pf people swipe 3-4 times a day, 19.6% of people browse through these websites 5-6
times a day, and 9.8% of people browse through these website more than 6 times a day.

Majority of the people, 86.3% as per the survey, are aware of various shopping sites. 11.8%
of people are unsure about it and the remaining 1.9% doesn't know about any.

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Impact of Social Media on E-Commerce
Most people prefer buying online, according to a survey. 72.5% of respondents said they
prefer to buy online, while 19.6% said they aren't sure or don't prefer to buy online.

According to a recent survey, the majority of people (54.9%) said they had bought something
after seeing it advertised on social media. 19.6% said they had done so after a friend's
recommendation, and 9.8% after a family member's recommendation. The remaining
respondents cited convenience, fast delivery, variety, and discount as their reasons for
preferring online shopping.
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Impact of Social Media on E-Commerce
According to a recent survey, nearly half of respondents (46.3%) agreed that social media has
at least some impact on their online buying decisions. 22.2% of people strongly disagreed,
while 16.7% and 14.8% disagreed and strongly disagreed, respectively.

According to the survey, 68.6% of respondents belive that social media usage creates an
opportunity for customers to interact with the firm. 23.5% of respondents were unsure, and
the rest do not belive that social media provides such an opportunity.

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Impact of Social Media on E-Commerce
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Impact of Social Media on E-Commerce
Summary & Recommendations

Social media is an integral asset for e-commerce sites. The capacity to not just direct
customers toward another item or an alluring arrangement, yet to draw in with them and
make a feeling of the network, is staggeringly valuable. A total web-based life nearness
additionally incorporates direct deals through certain systems, just as having the back-end
devices set up to let clients share items and late buys with companions and supporters
through only a single click.

While it's occasionally difficult to gauge solid profits for the circuitous parts of utilizing
social networks, for example, asking queries and taking part in discussions with followers,
these segments help to construct brand reliability and a feeling of network. When it comes to
dealing with consumer care issues, these social media interactions are important in retaining
customers and demonstrating a commitment to resolving problems.

Just as social media advances an e-commerce storefront, the store fronts need to feature a
social presence. Investing significant energy making posts for one or numerous systems isn't
powerful if customers aren't coordinated toward and urged to follow these pages. Utilize
online networking symbols at the base of every site page and give connections to sharing
explicit items.

It's additionally imperative to have a procedure before jumping into web-based life.
Beginning with only a couple of channels is best for new organizations, truth be told. Making
a steady tone that mirrors the disposition of the business additionally makes a difference.
Examination and instinct both have an impact on a web-based life system since posts are
based principally around discussions. Figure out where the time and exertion that goes into
online networking will be the best. Setting aside the effort to include top-notch item photos
and a business logo to the image and foundation fields of web-based social media accounts
will also help to unify branding and craft a consistent presence.

Social media needs to be a part of your company’s marketing budget because it gives you a
powerful way to create a connection with your target audience. From Instagram to LinkedIn,
there are virtually limitless ways for you to interact, give and share information as well as
market your products. When you perform social marketing effectively, it adds instant value.

Social networks enable you to connect with new customers and stay in touch with the
customers you already have. They also give you the opportunity to provide access to your
brand in an enjoyable and convenient way. The content that you offer through social
networks is just as significant as a sign at the entrance of a store or a displayed poster.

To be more precise we can say that Social media influences (attracts) consumers through
their posts, advertisements in choosing products and brands. Based on the search history
using data an analytics post has been displayed accordingly in social media sites. Over all
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Impact of Social Media on E-Commerce
more than 70% people says that social media helps them in purchasing online. This implies
that social media plays a key role in e-commerce consumers.

Conclusion:

In this project, I performed survey on how social media impacts on e-commerce consumers
by circulating questionnaire to among 113 people from different ages and different sectors.
The findings and results of my survey clearly signifies that social media helps in building
strong relationship between companies and consumers. Social media influences consumers
by suggesting and displaying brands and products on their respective social media page.
Social media helps e-commerce sites to design a marketing strategy for their products.

It can be concluded that daily usage of social media applications like Facebook, Instagram,
and Twitter builds a engagement between consumer and companies. This study concludes
that social media can be used to increase customer loyalty through its ability to communicate
directly to the consumer

Limitation:

The findings are restricted to Navi Mumbai. The present research work is based on
the data collected from the respondents. The views expressed by the respondents may
be biased one. Hence, the conclusion drawn on such information is one of the
limitations of the study. The selection of area where the study has been carried out is
another limitation from the limited area coverage point of view.

The statistical tools and techniques used in the study do have their own limitations.
Besides this, the resource and time factors are the other limitations for carrying out
the present study. In spite of all these limitations, an honest and sincere attempt has
been made to make the study a systematic and reliable one.

The results are not conclusive until replicated on a larger sample, thus limiting the
external validity of the study. The behaviors and habits of college students are unique
to the college experience, I am mentioning this because most of the respondents are
students. The researcher is not expected to generalize the findings of the present study to
older audiences, as adult populations presumably have lower interests in online purchase,
social media is majorly meant for teenagers and youngsters.

SCOPE FOR FUTURE STUDY

 This study has been performed in Navi Mumbai So, for better outcome and
understanding of buying behavior, this can be done in few more areas and then can
summarize a collated result of all.

 There is a scope of analyzing more factors which affects the buying behavior like
the effect of social media influencers, offers in sale, Promocodes, celebrity
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Impact of Social Media on E-Commerce
 endorsements.

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Impact of Social Media on E-Commerce
 References:
1. Double Tap: How Social Media Has Changed E-Commerce
https://www.licenseglobal.com/new-mediasocial/double-tap-how-social-media-has-changed-e-
commerce

2. What is the Impact of Social Media on Ecommerce?

https://www.ecomz.com/blog/what-is-the-impact-of-social-media-on-ecommerce

3. THE ROLE OF SOCIAL MEDIA AS A PLATFORM FOR E-COMMERCE - Moses

Kwame Kumah
https://core.ac.uk/download/pdf/161423643.pdf

4. The Impact of Social Media on E-Commerce Decision Making Process

https://www.econstor.eu/bitstream/10419/194865/1/19106-78062-1-10-20190316.pdf

5. The Effects of Social Media on E-Commerce: A Perspective of Social Impact Theory

https://www.computer.org/csdl/proceedings-article/hicss/2012/4525b814/12OmNvk7JJ7

6. The positive impact of social media on eCommerce

https://blog.clover.com/the-positive-impact-of-social-media-on-ecommerce/

7. Types of Ecommerce Business Models: Traditional and Innovate New Ones to

Consider
https://www.bigcommerce.com/articles/ecommerce/types-of-business-models/

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Impact of Social Media on E-Commerce

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Impact of Social Media on E-Commerce