Impact of Social networking on consumer buying behaviour

Introduction: In recent years use of social networking sites has been rising especially by teenagers and middle aged people. Social networking sites are a medium for meeting new people and remaining in contact with friends. This trend is mainly due to the increasingly busy schedules of people. Business related interactions also takes place over the web these days. Consumption related interaction also takes place over these networking sites as people exchange viewpoints and opinions about products. Online word of mouth is an effective tool in marketing which the companies can monitor. As an information source for customers, word of mouth communication is an important variable that affects closely corporate image, reputation, relationships and promotion activities. Moreover word of mouth is strongly related with repurchases and brand switching behaviors. First social media site were established at 1997 with the name of sixdegrees.com. After that web sites in different locations were established which allow users to communicate and create individual or professional profiles like asianavenue, black planet, migente, live journal, cyworld, lunarstorm, ryze.com, tribe.net, linkedin, friendster etc. Myspace has followed these sites in 2003 and quickly became popular. Facebook founded in 2004 with restrictions and it removed boundaries after the year of 2005.

Background Social media has made it possible for people to sit down and browse through the Internet, while communicating with other people about brands, products, and services provided for consumers. Marketers and advertisers are always looking for ways to understand the consumer better. In order to do so, businesses need to gather more information about consumers. Shopping and social networking Websites gather a lot of information about online users, and

has become tremendously useful for companies to track and model consumer behavior. As compared to traditional shopping at a mall and stores, the operating costs for an online store can be a lot lower than a storefront type of retailer. In addition, an online shopping site makes it easier for merchants to track online activity. This enables many companies to build large databases of online shopping activities, such as what the consumer has looked at, or what product the user has searched for. These companies now have the data to analyze aggregate and individual consumer behavior. social networks generally are having positive impact on businesses, especially reputable ones who take the time to engage online with their customer base.

Academic Justification : For an Academician, this study of impact of social networking on consumer buying behavior helps to understand how to lead and to learn from people within your company, marketers outside it, and, most of all customers. This study will help to understand The rapid adoption of technology globally is creating new market opportunities for buyers and sellers.

Business Justification: Social media has made it possible for businesses to communicate instantaneously and simultaneously with consumers (b to c) and consumers to communicate with other consumers (c to c) regarding products, brands and services continuously. This reciprocal cycle is magnified greatly in the marketplace and has impacted marketers and consumers usage o f this medium. Consumer behavior is changing at a breakneck pace as your customers embrace social media. They are making themselves heard everywhere, sharing their opinions about products and services, and influencing the buying decisions of their peers. To capitalize on these opportunities, you need a solution that brings together the best of ecommerce and social media in a single unified platform - one that goes where the consumers are, expanding touch

points, integrating with social media sites, engaging in context with shoppers, providing a seamless cross-channel experience, empowering merchandisers, and analyzing customer behavior to drive customer delight. Companies that embrace such a solution will be able to not only deepen consumer engagement but also amplify sales.

Personal justification : Nowadays social networking is playing a very important role in every individuals life. It has made a great impact on social life. Anybody can collect any kind of information & knowledge. Its just the matter of clicking computer keys & save our valuable time. We can buy and sell various items using this online facility as well as perform our financial & banking transactions very easily sitting at home without any stress. It has given us as individuals control over our lives and how we express ourselves. Everyone can express themselves to the world and carve out and create their own corner of influence. It would benefit us in various other ways. Social networking will inform us everything and everywhere. It is very convenient and beneficial in our day to day life. In this faster growing world it has became a needful instrument for everyone. It may motivate us to take control of our life and business with the new world of online publishing and marketing via blogs and social media networks. It will benefit us in following ways. Purpose of the study The increase in the trend of usage of social networking site has opened up new channels of communication. Today its the world of online shopping, thus it creates an interest to study how social networks influence buying behavior. Social Networking Sites have changed the way individuals communicate with the world, however, everyday designers are finding new and innovative ways in which they can use the sites to connect one person to the rest of society.

Literature review According to social media statistics 2012, 80 percent of social media users prefer to connect with brands through Facebook. (source:Business2Community) A whopping 77 percent of B2C companies and 43 percent of B2B companies acquired customers from Facebook. (source: Business2Community) A survey was conducted to know Does opinion of a product / brand Change if it has no presence on social media sites? 55% of respondents claimed that their opinion of a brand did not change if that brand was not actively engaged on-line and 45% claimed that their opinion does change if the brand is engaged on-line. Backer (2010) have investigated the usage pattern in adoption of new technologies like Facebook and Smart phones on students and found that such applications create a sense of motivation and responsibility as well as it enriches their learning experiences. (International Conference on Technology and Business Management) Sara Typ (2010) have analysed the impact of advances in technology and how it transformed the traditional business procedures in communicating to their target audience. (International Conference on Technology and Business Management) Dwyer (2007) express the mailing platforms, blogs and virtual brand communities as important meeting locations which are created by customers. (European Journal of Economics, Finance and Administrative Sciences - Issue 44 (2012)) Hu, Liu and Zhang (2007) mention that online word of mouth, which contains Evaluations and reviews about products, is a reliable information source for customers. (European Journal of Economics, Finance and Administrative Sciences - Issue 44 (2012)) Social media tools have become superb channels for marketers to reach consumers. The article titled, Expand your Brand Community Online states that social media is important for marketers because it allows them to dialogue directly with consumers, which in turn engages consumers directly with company brands (Hanlon, Patrick, Hawkins, & Josh, 2008)

When Facebook users communicate whats on their mind or update their status, they are offering a representation of the self, which is based on thei r social interactions with others (Ellis, 2010, p. 39).

Objectives of the project To Study how social networking sites helps companies to understand consumer buying pattern. To understand why consumers/buyers consider social media sites as valuable & credible resource for researching products & services. To study how online marketers are targeting a global audience through social networking sites.

Hypothesis H0 = There is an impact of social networking on consumer buying behavior. H1 = There is no impact of social networking on consumer buying behavior.

Questionnaire 1. Do you think that social media has a positive impact on sales of the company? Male Female

Response
Yes No 9% 0% May be 3% Can't Say Yes

Response
No May Be 4% Cant say

20% 0% 88% 76%

Interpretation Yes, according to this study social media has positive impact on sales because it is quick, easy access & less time consuming. With social media the businesses can connect with
their targeted customers for free, the only cost is energy and time. Through Facebook, Twitter, LinkedIn or any other social site you can lower your marketing cost to a significant level.

The increasing popularity of social sites like Twitter, Facebook and LinkedIn, social networks has gained attention as the most viable communication choice for the bloggers, article writers and content creators.

These sites have opened the opportunity for all the writers and bloggers to connect with their tech savvy clients to share your expertise and articles. Your audience will further share your articles, blog or expertise in their social circle which further enhance your networks of the followers.

Social networks have removed all the communication and interaction barriers, and now one can communicate his/her perception and thoughts over a variety of topics. Student and experts are able to share and communicate with like-minded people and can ask for the input and opinion on a particular topic.

2. Which of these social networking sites do you prefer the most? Male Response
Google+ Orkut 10% 19% 0% 39% 58% 71% 0% Facebook Twitter

Female Response
Google+ Facebook 3% Orkut Twitter

Interpretation-Most people prefer to visit face book because Facebook users like it when businesses display their brand affiliation with friends. Social budging is an important reason for which people choose to be fans. They like their friends to know about the brands they like.

3. In social networking sites which pages do you like the most?

Male

Female

Response
Companies Product and service Sports releted Any other 9% 19% 33% 39% 0%

Response
Companies Products and services Sports related Any other

29%

18%

53%

Interpretation- Most people like products and services pages on social networking sites. It makes it important for companies to post details about their business. Relevant news stories and blogs should be posted on the business facebook page . Fans like to read about the upcoming products and deals that businesses intend to offer.

4. Which of the following websites you have frequently visited for online shopping? Male Female

Response
Flipkart Jabong Olx.com Ebay.com Flipkart

Response
Jabong OLX E-bay

11% 18% 14% 7% 8% 67% 0% 75%

`
Interpretation - Cash on Delivery is a buying option that most customers probably like the most. With multiple occurrences of payment gateway failures and wrong deliveries, its the best bet. Even for people with no net banking option or cards, its a boon

5. How much do you spend daily on social networking sites? Male Female

Response
1Hr 1-2 HRS 2-3 HRS

Response
A B C D

4% 4% 13% 24% 32% 55% 68%

6. Do you get sufficient information related to any products through chartrooms? Male Female

Response
Yes No May be 6% Not sure Yes

Response
No May be not sure

29% 42% 23%

20%

20%

16% 44%

Interpretation We got response that sometimes they get information through chatrooms and sometimes not. For example, through friends we can get opinion related to the particular products.

7. For awareness which media you prefer the most? Male Female

Response
Television Social Networking Sites Radios Newspaper & Visuals 18% 0% 21% 61%

Response
Television Social networking site Radios Newspapers and visuals 0% 10%

40%

50%

Interprtation- Television is popular because it is easy entertainment. Unlike most other forms of entertainment, television is brought right into homes so there is no effort to receive it. Television brings with it a huge choice of content. It is very easy to find something on air that will entertain.

8. What is the most important factor taken into consideration while online shopping? Male Female

Response
Price Quality Guarantee/Warrantee After sale service 8% 17% 45% 30% 18%

Response
Price Quality Guarranty/Warranty After sales service 15% 35%

32%

Interpretation-majority of people while online shopping take into considaration the pricing factor generally people refer pricing factor with local market. Mostly people compare the products and look for discount which is on flipkart like 20% or 25% off .

9. Have you ever purchased a product or service based on an advertisement on a social network? Male Female

Response
Yes No

Response
Yes No

45% 55%

44% 56%

Interpretaion Almost more than 50% of people would prefer to buy online. Advertisements through Facebook can narrow down who you want to target by geography, age, sex, martial status, education, interests and more. This data produces an estimated reach fits your goals and expectations.

10. Why do 'like' brands on Face book? Male Female

Response
To show solidarity To updated E Solve Challenge Discount/Freebies

Response
To show solidarity updated news Communication lines 0% 3% To solve challenges discounts/Freebies

19% 7%

19% 9%

19%

28% 46%

50%

Interpretation - Followers on social networks like Facebook often translate to loyal customers for brands. A positive brand experience online leads to more sharing and engagement and, as a result, more business. But what is it that makes people want to follow a brand.