influence of social medias on brand choice

Influence of Social Medias on Brand Choice

2

INFLUENCE OF SOCIAL MEDIAS

ON

BRAND CHOICE

Prepared for:

Imrana Yasmin

Associate Professor

Prepared By:

Shampa Jahan

Roll: 156

Sec: ‘B’

Batch: 16th

DEPARTMENT OF MARKETING

FACULTY OF BUSINESS STUDIES

UNIVERSITY OF DHAKA

Date of Submission: April 24, 2014


3

Letter of Transmittal April 24, 2014

Imrana Yasmin

Associate Professor

Department of Marketing

Faculty of Business Studies

University of Dhaka

Subject: submission of the thesis paper on ‘Influence of Social Medias on Brand

Choice’.

Dear Madam,

With due respect, I would like to inform you that here is my BBA project paper based on

topic selected by you on ‘Influence of Social Medias on Brand Choice’. Social medias

now have great impact in our decision process and brand choice. This thesis paper is

bases on the influence of famous social medias on our brand choice. Our academic course

like marketing research, product and brand management, e-commerce was helpful for this

research. And I am grateful to you for your kind cooperation and expert opinion.

I have tried my level best to make this thesis paper and will be pleased to deliver you

further information regarding this thesis paper. I hope you will consider all unexpected

mistakes and limitation of this paper in a kind and forgivable manner.

Sincerely Yours,

……………………..

Shampa Jahan

Roll: 156 Sec: B

Batch: 16th



University of Dhaka


4

Authorization Letter

This is to certify that Shampa Jahan is a student of BBA, ID: 156, Batch: 16th , Section:

B, Department of Marketing has successfully completed her project paper entitled

“Influence of Social Medias on Brand Choice” under my supervision as the partial

fulfillment for the award of BBA degree.

She has done her project paper according to my supervision and active guidance. She has

tried her best to do this successfully. I wish her success and prosperity.

………………………

Imrana Yasmin

Associate Professor



University of Dhaka


5

Acknowledgement

At first, I would like to express my gratitude to Allah for enabling me

successfully complete this thesis paper in due time.

Then I would like to thank our supervisor Imrana Yasmin. This is my first thesis

paper and so I lack practical experience. It was a challenging job for me. My supervisor

Imrana Yasmin, Associate Professor of Department of Marketing, University of Dhaka

helped me a lot with her experienced advice and instructions. Without her supervision,

cooperation, and instructions my thesis paper would not come into light.

I would also like to thank our friend Sazzad Hossain, Department of Accounting

and Information System, University of Dhaka who helped me to learn SPSS software.

And finally I would like to thank my family and friends who helped me and

inspired me a lot to complete the thesis.


6

Table of Contents

Particulars Page No.

Letter of Transmittal 3

Authorization Letter 4

Acknowledgement 5

Abstract 7

Introduction 8

Literature Review 11

Objectives 14

Impacts Of Social Sites 14

Some Benefits of Using Social Medias for Brand Choice 18

Methodology 19

Findings 21

Recommendations 55

Limitations 56

Conclusion 56

References 58


7

Impacts of Social Medias

On

Brand Choice

Abstract:

Social Medias are becoming more popular day by day. Use of social sites for

various purposes is increasing. It is the interaction among people in which they create,

share or exchange information and ideas in virtual communities and networks. These

social Medias or sites like face book, twitter, Google plus, LinkedIn can be used as a

source of information and to share information. We know that social media depend on

mobile and web-based technologies and create highly interactive platforms through

which individuals and communities can share, co-create, discuss, and modify user-

generated content. These social sites can be used as a source of brand information.

People can use these sites to compare different brands and products they buy. Even they

can compare price and quality over B2C and C2C e-commerce sites. So the contribution

of these social sites is increasing. This paper aims to investigate consumers’ attitude

towards using these social sites as a medium of brand choice and for getting brand

information. For finding out the impact of social sites on brand choice I have conducted

a survey on 50 respondents in Dhaka city, more specifically in Dhaka University through

a structured questionnaire. This study intends to explore the factors about consumers’

perception about social sites and using social sites as a source of information about

brand information and using this information for brand choice. I hope this survey will

help to determine the perceived benefits, risks, and consumers’’ willingness to use social

sites as a source of brand choice. This paper also attempts to detect how consumers

evaluate the concept of using social sites for purposes like shopping. And finally we

evaluate the implications of these findings and suggest actions to related parties.

Keywords: social sites, social medias, brand, brand choice, consumers


8

Introduction:

Now a day’s social media has become a part of our day to day life. The number of

user of social medias like Facebook, Twitter, LinkedIn, and Google+ is increasing day by

day. On a daily basis in present-day, 100,000 tweets are sent, 684,478 pieces of content

are shared on Facebook, 2 million search queries are made on Google, 48 hours of video

are uploaded to YouTube, 3,600 photos are shared on Instagram, and 571 websites are

created (James, 2012). Think about a few years ago, when word of mouth could not travel

very far, we had to rely on our near friends and peer groups for information about

products and services. Advertising and sales promotions had a significant impact on the

consumer decision making process. Sure, running from store to store or shop to shop was

a regular duty to find out the right product and service or brand. But now, social media

gives word of mouth wings. The impact of social media on awareness, brand attitudes,

and social norms is so strong we often refer to viral marketing or buzz marketing to

reflect tactics designed to stimulate positive word of mouth. Now we can get expert

information from our friends, peer groups through social medias. Often most people use

information on social media as the guideline for their future purchase or planning their

future trip. Moreover, marketers use these social media as a medium of advertising. They

have marketing strategy to gain more customers through these social sites. It is easy to

gain customers attention using social sites, because people often tend to believe in what

their friends or peers recommend. Facebook, Twitter, or Linked in, Google plus are some

of the most popular social media sites that people use to share their lifestyle, stories,

where they went for vacation and even what they are doing or going to do. They post

information which could lead their friends to do the same thing or their friends can use

their information to make their own decisions. So the brand choice of one friend can be

influenced by another friend through social sites.

In today’s technology driven world, social networking sites have become an

avenue where retailers and even customers themselves can extend their marketing

campaigns to a wider range of consumers. Social media marketing can be defined as a

“connection between brands and consumers, while offering a personal channel and


9

currency for user centered networking and social interaction” (Chi, 2011). The tools and

approaches for communicating with customers have changed greatly with the emergence

of social media. Now the consumers can learn about any product or service form their

friends in social sites. The easy interactions among the users of social media allow the

users to share their feeling about a brand and/ or service. And these sharing and

communications help the users to choose their desired brand from a wide range of brand

or products.

Online sales are increasing, cost of customer acquisition is decreasing, and new

ways of customer retention are being developed through using social sites. Consumers

connect, rate, discuss, and consume product information and reviews like never before.

They can get instant recommendations of their friends about a product or service. They

make survey before they purchase a product. They learn about different brand and get

required information from their friends in social sites. They can compare brands over

social sites. When savvy consumers are in the market for something like a new pair of

shoes, a DSLR camera, cosmetic products, a fridge or a cell phone they turn to the web,

knowing there's a wealth of knowledge and information to be had. They can get all

information they need from social sites. They can get expert opinion from a friend who

has experience. For luxury products they can get the appreciation and choice of other.

Consumers are much more likely to discover about new products and brands in social

medias. They now refer to social media before making purchase decisions. People use

social medias for various purposes. Some of these are to-

· Discover new brands or products through social media,

· Learn about unfamiliar brands or products ,

· Make purchase decisions by taking opinions in social media,

· Refer to social media before making purchase decisions,

· Find coupons or other discounts for local businesses,

· Compare or check prices social medias,

· Refer to reviews for brands/places/services,


10

So it is clear that the importance of social medias for choosing the most feasible

product or service is huge and the importance is increasing at a great pace. Consumers are

now integrating social media usage with their mobile phone activity. Teenagers and

adults who have ever used social media are now accessing it through their mobile device.

As a result, social media is now a 'wherever I am' option, integrated into the mobile-plus

social media users' shopping experience and habits; these medias like face book, Google

plus, twitter, LinkedIn are Tying consumer interactions back to brands and purchase

decisions. The Faces of Social Media gives brands the ability to not only understand, but

also act on that influence. This move to mobility combined with the increasing influence

of social media during the purchase process has great implications for both marketers and

consumers.

There are various statistics that account for social media usage and effectiveness

for individuals worldwide. Some of the most recent statistics are as follows:

· Consumers continue to spend more time on social networks than on any other

category of sites—roughly 20 percent of their total time online via personal

computer (PC), and 30 percent of total time online via mobile.

· Total time spent on social media in the U.S. across PCs and mobile devices

increased 37 percent to 121 billion minutes in July 2012, compared to 88 billion

in July 2011.

· Facebook remains the most-visited social network in the U.S. via PC (152.2

million visitors), mobile apps (78.4 million users) and mobile web (74.3 million

visitors), and is multiple times the size of the next largest social site across each

platform.

· 51% of people aged 25–34 used social networking in the office, more than any

other age group. (Nielsen, 2012)

So the use of social sites has a huge impact in consumers brand decision. And so the

importance of social medias is increasing day by day.


11

Literature Review:

The influence of social sites on buyer’s brand choice behavior can be in any

services or products. Quality, service, advertising or price could affect consumer brand

choice. Brand experience and brand service can be the base of brand loyalty. In 2003,

Western Kentucky University used a sample of 249 consumers' purchases to analyze the

type of product purchased, and the cost of item. The results of this research present that

consumers are buying either inexpensive or expensive items, and are doing so based on

recommendations from social media by their contacts or friends on social media (Forbes

& Vespoli, 2013). We can consider the effect and can say that social media does

influence buying behavior and their brand choice. According to the recommendations on

purchases, 59% of all respondents were using Facebook as their social media tool when

they received a product recommendation. 37% of all users were using Twitter. From

these results, social media has influenced their buying behavior.

Consumers and businesses around the globe have been more connected than ever

before with the presence of Internet. An average Internet user has 669 social ties

(Hampton et al. 2011). Facebook has more than 757 million daily active users on average

in December 2013(Facebook Newsroom, 2014) with over 1.5 million business pages

(Facebook 2013), and 30 billion pieces of content shared on a monthly basis (McKinsey,

2011). Approximately there are 645,750,000 active registered Twitter users, 58 million

Tweets are sent per day, at about 9,100 Tweets happen per second (Tweeter, 2014). And

LinkedIn connects the world's professionals to make them more productive and

successful. With more than 277 million members worldwide, including executives from

every Fortune 500 company, LinkedIn is the world's largest professional network on the

Internet (LinkedIn, 2013). The global average time spent per person on social networking

sites is 6.9 hours per month (Delaney and Salminen, 2012). Changes in consumer

behavior due to social media are one of the most intriguing aspects in the contemporary

marketing.


12

There is relationship between social sites and consumer brand choice. Using

social sites affects brand attitudes, and purchasing intentions of consumer. It will not

necessarily affect consumer’s decision-making, but might possess a mediating effect

(Taining, 2012). Social media can build brand attitudes that affect buying behavior. It can

help to build a good image of a brand or product and can lead the consumer to make

decision on their purchases. When consumer’s friend on social media shares or

recommends services or products on their social media or praise a branded product it

influences the decision-making process and the brand attitude of the buyer. Advertising

on social media, which is provided by commercial sources affect both consumer brand

attitudes and purchasing intention (Yang, 2012). Many marketers use social media for

their marketing campaigns because it is easy to communicate with consumers through

social sites and it is inexpensive to advertise brands or services. On pages for brands and

products, however, some companies have reported CTR as high as 6.49% for Wall posts.

According to Curran et al. (2011), social media sites such as Facebook are better than

other advertising avenues because it stores information on all its users thus ensuring

marketing reaches a retailer’s specific target market. Social media sites are a great stage

for retailers to create an experience and retailers can use information stored on social

media sites to improve user experience with their brand. A study found that, for video

advertisements on Facebook, over 40% of users who viewed the videos viewed the entire

video, while the industry average was 25% for in-banner video ads. As Curran et al.

(2011) points out, almost 1 in every 13 person in the world is an active Facebook user,

which points to the potential of finding a ready market for any product or service.

Now if we talk about brand we can say Brand is essentially the sum of all

experiences related to the product, service, and companies that make and deliver the

product. A brand is more than a product, because it can have dimensions that differentiate

it in some way from other products designed to satisfy the same needs (Keller, 2009, p-

27). Brand perceptions are shaped by functional experiences as well as emotional

experiences the customer associates with the product and company. Brand experiences

and perceptions are developed over time through a variety of sources, including:


13

· Previous experience with the brand

· Interactions with sales, customer service, and other employees

· Recommendations from friends and colleagues

· Reviews by reputable sources

· Advertising

So recommendations from friends and colleagues can act as a source of brand

choice information. Social sites can allow a prospective consumer to communicate with

friends and colleagues about a product or brand. Study shows that social media allows

consumers and prospective consumers to communicate directly to a brand representative.

So it can be said that consumers are using the social sites as tool to search and purchase

items, brands or services. The online consumer is a booming market worldwide; however

it is giving a globalized level of segmentation cross-culturally (Vinerean, Cetina &

Tichindelean, 2013). If they have some problems on products or services, consumers

could reach the company via social media, which is an easy way to connect and contact

with them. Some of the dissatisfied customers will share their feelings and experience in

social sites. So users of social sites can get that information about brand and they can also

get information about good brands. The reactions and responses can build strong brand

images and get more consumers to purchase products or services. When a consumer

wants to make decision on product, every single detail could be an influence to their

decision-making and brand choice.

Consumer motives for engaging in social media provide insights into consumers’

activities. Consumers have three main gratifications or motives for using the Internet as a

medium, namely, information, entertainment, and social aspects (Heinonen, 2011). The

motivation is in two main groups:

· Rational motives, such as knowledge-sharing and advocacy, and

· Emotional motives, such as social connection and self-expression (Krishnamurthy

& Dou, 2008).

Consumers’ activities in social media have been found based on consumers' conduct

online. Nowadays consumers are using Internet as their tools to achieve their motivations.


14

Their motivation could be connected to their old friends, business, or reviews to support

their decision-making. Reviews on social media become second-hand resources to

support consumer’s decision-making because they want value from their money. Reviews

on social sites not only affect expensive items, but also inexpensive items as well. People

can see the reviews on cosmetics, books, cars, hotels, or even nail polishes. Those

reviews can motivate purchases or support consumer’s decision-making by making it

more reasonable to spend the money on it.

Objectives:

The objectives of the study are to

1. Identify and understand how people use social sites to make decisions about brand

choice.

2. Define the benefits and limitations of these sites.

3. Make the use of these sites more acceptable and fruitful.

Impacts of social sites:

The phrase social sites and social media can be used interchangeably .Kaplan and

Haenlein (2010,p- 61) define social media as “a group of Internet based applications that

build on the ideological and technological foundations of Web 2.0, and allow the creation

and exchange of user generated content.” Sinclaire and Vogus (2011, p-294) cite

O’Reilly’s (2005) definition: “social media is a broad term that describes software tools

that create user generated content that can be shared.” However, there are some basic

features necessary for a website to meet the requirements as a social network website: the

site must contain user profiles, content, and a method that permits users to connect with


15

each other and post comments on each other’s pages, and join virtual groups based on

common interests such as fashion or politics. (Gross & Acquisti, 2005; Ellison, Steinfield

& Lampe, 2007; Lenhart & Madden, 2007; Winder, 2007; Boyd & Ellison, 2007 as cited

in Cox 2010). We will consider some of the famous social sites such as Facebook,

Twitter, Google plus, and LinkedIn. “As more shoppers are using social media (e.g.,

Twitter, Facebook, MySpace, and LinkedIn) and rely on them for marketing shopping

decisions, promotion through these media has become important” (Shankar et al. 2011,

32).

Brand awareness refers to customers' ability to recall and recognize the brand

under different conditions and link to the brand name, logo, and jingles and so on to

certain associations in memory. It consists of both brand recognition and brand recall. It

helps the customers to understand to which product or service category the particular

brand belongs and what products and services are sold under the brand name. It also

ensures that customers know which of their needs are satisfied by the brand through its

products (Keller, 2009). Brand awareness is of critical importance since customers will

not consider your brand if they are not aware of it.

According to a study by the digital marketing agency ODM Group, 74% of

consumers rely on social networks to guide purchase decisions. Social media platforms

like Facebook and Twitter have allowed brands to effectively market to a wider audience.

For consumers, these platforms allow easy access to brands, but also help to guide

product decisions and purchases. On Twitter, 53% of consumers recommend companies

or products in their tweets. Of those, 48% follow through with the intent to buy that

product or service (Jennifer Beese, 2011).

The most effective platforms in terms of mobilizing consumers to talk about

products are Facebook with 86%, followed by Twitter at 65%, blogs and reviews are tied

at 55%, and videos come in last with 50%. Not only should you have a social presence on

these platforms, but you should make sure to monitor closely for mentions of your brand

or products (Jennifer Beese, 2011). Social media always influences our purchasing

decisions. Here are some statistics that prove that social media influences our choice.


16

1. Consumers are 71% more likely to make a purchase based on social media referrals

(Hubspot, 2012)

2. Social networks influence nearly 50% of all IT decision makers (LinkedIn - learn more

at TechConnect '12)

3. Out of 53% of consumers who said they use Twitter to recommend companies or

products in their Tweets, 48% bought that product or service (SproutSocial, 2011)

4. Twitter is the #1 online channel for influencing purchasing decisions surrounding

electronics (Mashable, 2011)

5. 15,100,000 consumers go to social media channels before making purchase decisions

(Knowledge Networks, 2011)

6. 49% of consumers use Facebook to search for restaurants (Mashable, 2011)

7. 74% of consumers rely on social networks to guide purchase decisions (SproutSocial,

2011)

8. 58% of Facebook users expect offers, events or promotions when they become fans

(Hubspot, 2012)

9. Facebook is the most effective platform to get consumers talking about products

(SproutSocial, 2011)

10. Facebook is the #1 online channel for influencing the purchase of baby products

(Mashable, 2011)

11. 79% of consumers like a Facebook company page because it offers discounts and

incentives (Forbes, 2012)

12. 44% of automotive consumers conduct research on forums (Mashable, 2011)


17

13. 38,000,000 13 to 80 year olds in the U.S. said their purchasing decisions were

influenced by social media (Knowledge Networks, 2011)

14. 81% of US respondents indicated that friends' social media posts directly influenced

their purchase decision (Forbes, 2012)

15. As of June 2011, there were 213,000,000 fans of Facebook Pages (Mashable, 2011)

16. 32.5% of women say they're influenced by special offers on Facebook vs. 29% on

Twitter (Business2Community)

17. 78% of respondents said that companies' social media posts impact their purchases

(Forbes, 2012)

18. Moms are 45% more likely than other women to say they made a purchase from a

recommendation on social (MarketingProfs, 2012)

19. 70% of active online adult social networkers shop online, 12% more likely than the

average adult internet user (Nielsen, 2011)

20. 44% of social media savvy women said their trusted/favorite blogger influences their

purchasing decision (Business2Community)

If we talk about Facebook then we have to admit that it has affected the social life

and activity of people in various ways. With its availability on many mobile devices,

Facebook allows users to continuously stay in touch with friends, relatives and other

acquaintances wherever they are in the world, as long as there is access to the Internet. It

can also unite people with common interests and/or beliefs through groups and other

pages, and has been known to reunite lost family members and friends because of the

widespread reach of its network.

Some argue that Facebook is beneficial to one's social life because they can

continuously stay in contact with their friends and relatives, while others say that it can

cause increased antisocial tendencies because people are not directly communicating with


18

each other. Some studies have named Facebook as a source of problems in relationships.

Several news stories have suggested that using Facebook can lead to higher instances of

divorce and infidelity, but the claims have been questioned by other commentators.

Some Benefits of Using Social Medias for Brand Choice:

A user of social media or site can get several benefits while using social medias

for choosing brands. Some of the benefits are given below-

· They can attain information very quickly through social media networks whereas

in mass media the situation is quite different in that you have to rely on for

instance magazines or TVs and that takes really time

· They can gather information about customer experiences, word of mouth, going

behind the marketing and advertising mumbo-jumbos/polished slogans

· When using social media, one can actually search for the aspects that interest

them.

· One can filter the information from hundreds of users' opinion and comments

before making the decision of purchasing a brand.

· In social media one can argue with friends about future purchase, shortcomings

and their previous experience with the same products or brands.

· They are able to make a comment and discuss about brands with others.

For these benefits the use of social media for brand choice is increasing. More and more

people are using these medias for deciding their brand or are at least checking the brand

preview of friends.


19

Methodology:

There are two distinct research methods – quantitative and qualitative, in

collecting data for the purpose of obtaining information from them, to solve or answer a

particular research problem or question (Ghauri & Gronhaug 2005, p- 109). But taking

the sample size into consideration, it has been decided not to conduct any in-depth

interviews with the targeted respondents.

Qualitative research is an unstructured, exploratory research methodology based

on small samples that provides insights and understanding of the problem setting. And

quantitative research is a research methodology that seeks to quantify the data and

typically applies some form of statistical analysis. (Malhotra & Dash, 2012). For the

purpose of this research, quantitative data was gathered and utilized. With the strategy of

survey, it allows the collection of a large amount of data from a sizeable population in a

highly economical way (Saunders et al. 2009); it is also a logical and critical approach

which allows the researcher to control measurement and outcome. Here the research

focuses on a geographical area; the research reach individuals whose age range from 15

to 35 years. As more responses will result higher credibility of the findings I tried to

gather enough response.

Although it is usually better to link quantitative data with other methods (such as

in-depth interviews) in order to complement the findings of a research (Saunders et al.

2009), this research is to identify the importance of social medias in the consumer

decision making process and brand choice, and for that we have to identify the

relationship between overwhelming information on social media and its impact on

consumers’ brand choice.

The survey was carried out in the form of questionnaire. Since there was only one

chance to collect the data, the researcher had to identify precisely of what data is needed,

and to design the questionnaire in order to meet the research objectives (Saunders et al.

2009). In order to ensure respondent decodes the questions in the way the researcher


20

intended, the clarity of the questionnaire structure was a dominant factor. Moreover the

appropriate length and logical order of the questions in the questionnaire is also

important. to examine the relationship between social media and consumer behavior

many questions are designed to reflect individuals’ beliefs and attitudes, considerations,

their knowledge and appreciation. Questions are expressed in the form of scale questions.

Data for the study were collected through using 5-point likert scale. Here strongly agree=

5, agree=4, neutral=3, disagree= 2 and strongly disagree=1. Before sending the

questionnaire to the targeted respondents, I have consulted with supervisor and the

questionnaire was approved by the thesis supervisor. Analyses and conclusions of the

research are made upon actual numerical facts of the collected data, in order to obtain

verified and applicable data.

The survey was sent out to approximately 80 individuals, and the number of

participants was 50, therefore the total percentage of responses was 62.5%. the total the

questionnaire contains 24 questions. Moreover the questionnaire included 4 questions

regarding demographic variables. Respondents were taken who use internet for various

purpose or at least has internet access. and the sample drawn for this research was

balanced by age, gender, educational factors.

To analyze the collected survey data, SPSS software has been used. And to

prepare the graph and bar commercial spreadsheet package MS Excel was used.

Questions were divided into 8 tables. They are- Sample Profile, Consumers Awareness of

Social Sites and Brand , Consumer’s Idea about Using Social Medias for Brand Choice ,

Considered Factors While Using Social Sites to Know About Brand, Perceived Benefits,

Perceived Risks , Consumers Willingness to Purchase Branded Goods Based on

Information Gathered from Social Sites , and Consumer’s Deal Evaluation .


21

Findings:

The first table contains the demographic variables. It shows that all the

respondents fall into the age group of 15 to 35 years and all the respondents are educated.

It also shows that forty percent of the respondents are male and sixty percent is female.

Table 1: Sample Profile

Consumer’s Demographic Variable % of respondent

Name

Age 15 to 35 years 100%

Education All are educated 100%

Gender Male : 40%

Female 60%

Table 2: Consumers Awareness of Social Sites and Brand

Factors Influence Consumer to Use Social Sites for Brand

Choice

%of responses

Yes No

1 I know about social sites and Brand 94% 6%

2 I use social sites 98% 2%

3 I purchase branded products 96% 4%

4 I am aware that social sites can be used as a source of brand

information

92% 8%

Table 2 shows consumer awareness of social sites and brands. Both brand and

social medias are familiar term to most of the respondents. 98% of the respondent said

they use social medias and 96% purchase branded products. And 92% of the respondents

are aware that social sites can be used as a source of brand information.


22

Table 3: Consumer’s Idea about Using Social Medias for Brand Choice

Factors Influence Consumer

to Use Social Sites for Brand

Choice

% of Responses in 5Point Likert Scale Mean

Value

Strongly

Agree

(SA)

5

Agree

(A)

4

Neutral

(N)

3

Disagree

(D)

2

Strongly

Disagree

(SD)

1

(SA*5+A

*4+N*3+

D*2+SD*

1)/100

5 I agree social sites are

successful in linking

people and organizations

34% 50% 14% 2% 0% 4.16

6 Social sites help us to share

our thoughts about

different brands and

services.

28% 54% 10% 8% 0% 4.02

7 Branded products and

services assure good

quality and services.

30% 44% 22% 2% 2% 3.98

8 Use of social sites can

bring change in our brand

choice.

8% 56% 22% 14% 0% 3.58

The third table contains questions that are related with consumers’ idea about

using social media as a source of information.34% strongly agree that it can link people

and organization, 50% agree with the statement, 14% remain neutral and 2%

disagree.28% strongly agree that social sites help them to share their thoughts, 54% agree

with it, 10% of them remain neutral about the statement and 8% disagree.

30% strongly agree that branded products and services assure good quality and

services, 44% agree, 22% of the respondents are neutral, 2% disagree and 2% strongly

disagree with this statement. 8% strongly agree that using social sites can somehow bring


23

change in our brand choice, 56% agree with this statement, 22% remain neutral and 14%

disagree with this statement.

Table 4: Considered Factors While Using Social Sites to Know About Brand

Factor Influence Consumer

to Use Social Sites for Brand

Choice


Value

Strongly

Agree

Agree Neutral Disagree Strongl

y

Disagre

e

(SA*5+A

*4+N*3+

D*2+SD*

1)/100

9 I consider the shared

sites, liked pages, chat

and tweet about products

to gain information about

brands.

20% 50% 18% 10% 2% 3.76

10 I consider the safety and

mental satisfaction of

buying branded products.

32% 48% 20% 0% 0% 4.12

11 I consider the WOM and

buzz marketing factors

that I get from my used

social sites

12% 52% 32% 4% 0% 3.72

12 I consider the time,

money and energy that

can be saved by using

social sites to choose

brands.

10% 50% 30% 10% 0% 3.60

13 I consider brand variety

and friend’s preferences

while choosing brand.

22% 62% 10% 6% 0% 4.00


24

People consider various factors while use social sites or buy branded products.

These factors are important. Table 4 shows these factors that are considered.20% strongly

agree that they consider shared and liked pages, tweets of friends to gain information

about brands. 50% agree with the statement 18% remained neutral 10% disagree and 2%

strongly disagree with the statement. 32% said that they consider the safety and mental

satisfaction of buying branded products, 48% agree with them and 20%was neutral.12%

strongly agree that they consider the buzz marketing and WOM factors that they gather

from the social sites, 52% agree, 32% are neutral and 4% does not consider these.10%

strongly agree that they consider the time, money and energy that can be saved, 50%

agree ,30% remain neutral and 10% does not consider these factor.22% said that they

consider brand variety and friends preferences for choosing brand, 62% agree, 10%

remain neutral and 6% disagree.

Table 5: Perceived Benefits

Factors Influence Consumer

to Use Social Sites for

Brand Choice


Value

Strongly

Agree

Agree Neutral Disagree Strongly

Disagree

(SA*5+A

*4+N*3+

D*2+SD*

1)/100

14 Easy to compare Brands 22% 54% 12% 12% 0% 3.86

15 Energy, time ,and money

saving

12% 68% 14% 6% 0% 3.86

16 Expert opinion about

brands

16% 48% 30% 4% 2% 3.72

17 Price considerations and

comparing prices

20% 52% 18% 10% 0% 3.82

Table 5 includes the perceived benefits of using the social medias for choosing

preferable brand. 22% strongly agree and 54% agree that it is easy to compare brand over


25

the social sites, 12% remain neutral and 12% disagree. 12% strongly agree and 685 agree

that it saves time, energy and money, 14% remain neutral and 6% disagree. 16% strongly

agree, 48% agree that social media help to get expert opinion about brands, while 30% is

neutral, 4% disagree and 2% strongly disagree. 20% strongly agree and 52 % agree that it

is easy to compare price and 18% remain neutral while 10% disagree.

Table 6: Perceived Risks

Factors Influence

Consumer to Use Social

Sites for Brand Choice


Value

Strongly

Agree


Disagree

(SA*5+A

*4+N*3+

D*2+SD*

1)/100

18 Sometimes the process

can be complicated

34% 56% 8% 2% 0% 4.22

19 Missing the fun of

shopping by visiting

several stores and

markets

44% 36% 14% 6% 0% 4.18

20 Information gained from

social sited are not

always trusted

50% 38% 10% 2% 0% 4.36

Table 6 includes the perceived risks, the risks that can result while using social

media for choosing brand. 34% strongly agree, 56% agree that the process is

complicated, while 8% remain neutral and 2% disagree. 44% strongly agree and 36%

agree that they miss the fun of visiting while shopping, 14% remain neutral and 6%

disagree. 50% strongly agree, 38% agree that the information gained is not always

trustable, 10% remain neutral, and 2% disagree with this statement.


26

Table 7: Consumers Willingness to Purchase Branded Goods Based on Information

Gathered from Social Sites

Factors Influence




Value

Strongly

Agree

Agree Neutral Disagre

e

Strongly

Disagree

(SA*5+A

*4+N*3+

D*2+SD*

1)/100

21 I often visit online stores

and stores referred in

social sites

18% 52% 14% 10% 6% 3.66

22 I purchase brand that are

praised in social sites

12% 38% 20% 26% 4% 3.28

Table 7 considers consumers’ willingness to purchase branded goods based on

information gathered from social sites. 18% strongly agree, 52% agree that they visit

online stores and stores reffered in the social medias they use. 14% remain neutral 10%

disagree and 6 % strongly disagree with this starement.12% strongly agree and 38%

agree that they purchase brands that are praised in social sites they use. 20% were neutral,

26% disagree and 4% strongly disagree with this statement.


27

Table 8: Consumer’s Deal Evaluation

Factors Influence




Value

Strongly

Agree


Disagree

(SA*5+A

*4+N*3+

D*2+SD

*1)/100

23 I think social sites will

be more preferable for

comparing and choosing

brand

18% 38% 36% 4% 4% 3.62

24 I think using social sites

is helpful for brand

choice

14% 52% 28% 6% 0% 3.74

This table evaluates the deal of consumers’. 18% strongly agree and38% agree

that social sites will be more preferable for comparing and choosing brands in future.

36% remain neutral, $% disagree and 4% strongly disagree with the statement. 14%

strongly agree and 52% agree that social sites are helpful for brand choice while 28% are

neutral and 6% disagree.

These findings were taken from SPSS software and the frequencies , percent,

valid percent, cumulative percent, mean median, mode, standard deviation, related bar

graphs with each questions is given below.


28

Frequencies

Notes

Output Created 06-Apr-2014 22:53:07

Comments

Input Active Dataset DataSet1

Filter <none>

Weight <none>

Split File <none>

N of Rows in Working

Data File 50

Missing Value

Handling

Definition of Missing User-defined missing values are

treated as missing.

Cases Used Statistics are based on all cases

with valid data.

Syntax FREQUENCIES

VARIABLES=Question_1

Question_2 Question_3

Question_4

/STATISTICS=MEAN

MEDIAN MODE SUM

/ORDER=ANALYSIS.

Resources Processor Time 00:00:00.000

Elapsed Time 00:00:00.000


29

Statistics

Question_1 Question_2 Question_3 Question_4

N Valid 50 50 50 50

Missing 0 0 0 0

Frequency Table

Question_1

Frequency Percent Valid Percent

Cumulative

Percent

Valid No 3 6.0 6.0 6.0

Yes 47 94.0 94.0 100.0

Total 50 100.0 100.0

Graph: Question 1


30

Question_2


Cumulative

Percent

Valid No 1 2.0 2.0 2.0

Yes 49 98.0 98.0 100.0

Total 50 100.0 100.0

Graph: Question 2

Question_3


Cumulative

Percent

Valid No 2 4.0 4.0 4.0

Yes 48 96.0 96.0 100.0

Total 50 100.0 100.0


31

Graph: Question 3

Question_4


Cumulative

Percent

Valid No 4 8.0 8.0 8.0

Yes 46 92.0 92.0 100.0

Total 50 100.0 100.0

Graph: Question 4


32

Frequencies

Notes


Comments

Input Data C:\Users\user\Documents\ques

4-8.sav

Active Dataset DataSet1

Filter <none>

Weight <none>

Split File <none>


Data File 50

Missing Value

Handling

Definition of Missing User-defined missing values are

treated as missing.

Cases Used Statistics are based on all cases

with valid data.

Syntax FREQUENCIES



Question_8

/STATISTICS=STDDEV

MEAN MEDIAN MODE

/ORDER=ANALYSIS.




33

Statistics


N Valid 50 50 50 50

Missing 0 0 0 0

Mean 4.1600 4.0200 3.9800 3.5800

Median 4.0000 4.0000 4.0000 4.0000

Mode 4.00 4.00 4.00 4.00

Std. Deviation .73845 .84491 .89191 .83520

Frequency Table

Question_5


Cumulative

Percent

Valid D 1 2.0 2.0 2.0

N 7 14.0 14.0 16.0

A 25 50.0 50.0 66.0

SA 17 34.0 34.0 100.0

Total 50 100.0 100.0


34

Graph: Question 5

Question_6


Cumulative

Percent

Valid D 4 8.0 8.0 8.0

N 5 10.0 10.0 18.0

A 27 54.0 54.0 72.0

SA 14 28.0 28.0 100.0

Total 50 100.0 100.0


35

Graph: Question 6

Question_7


Cumulative

Percent

Valid SD 1 2.0 2.0 2.0

D 1 2.0 2.0 4.0

N 11 22.0 22.0 26.0

A 22 44.0 44.0 70.0

SA 15 30.0 30.0 100.0

Total 50 100.0 100.0


36

Graph: Question 7

Question_8


Cumulative

Percent

Valid D 7 14.0 14.0 14.0

N 11 22.0 22.0 36.0

A 28 56.0 56.0 92.0

SA 4 8.0 8.0 100.0

Total 50 100.0 100.0

Graph: Question 8


37

Descriptive Statistics

N Minimum Maximum Mean

Std.

Deviation

Question_5 50 2.00 5.00 4.1600 .73845

Question_6 50 2.00 5.00 4.0200 .84491

Question_7 50 1.00 5.00 3.9800 .89191

Question_8 50 2.00 5.00 3.5800 .83520

Valid N (list

wise) 50

Frequencies

Notes


Comments

Input Data C:\Users\user\Documents\QUES9=24

.sav

Active Dataset DataSet1

Filter <none>

Weight <none>

Split File <none>


Data File 50

Missing Value Handling Definition of Missing User-defined missing values are

treated as missing.

Cases Used Statistics are based on all cases with

valid data.


38

Syntax FREQUENCIES









Question_24

/STATISTICS=MEAN MEDIAN

MODE SUM

/ORDER=ANALYSIS.



Statistics

Question_9 Question_10 Question_11 Question_12 Question_13

N Valid 50 50 50 50 50

Missin

g 0 0 0 0 0

Mean 3.7600 4.1200 3.7200 3.6000 4.0000

Median 4.0000 4.0000 4.0000 4.0000 4.0000

Mode 4.00 4.00 4.00 4.00 4.00

Sum 188.00 206.00 186.00 180.00 200.00


39

Frequency Table

Question_9


Cumulative

Percent

Valid SD 1 2.0 2.0 2.0

D 5 10.0 10.0 12.0

N 9 18.0 18.0 30.0

A 25 50.0 50.0 80.0

SA 10 20.0 20.0 100.0

Total 50 100.0 100.0

Graph: Question 9


40

Question_10


Cumulative

Percent

Valid N 10 20.0 20.0 20.0

A 24 48.0 48.0 68.0

SA 16 32.0 32.0 100.0

Total 50 100.0 100.0

Graph: Question 10

Question_11


Cumulative

Percent

Valid D 2 4.0 4.0 4.0

N 16 32.0 32.0 36.0

A 26 52.0 52.0 88.0

SA 6 12.0 12.0 100.0

Total 50 100.0 100.0


41

Graph: Question 11

Question_12


Cumulative

Percent

Valid D 5 10.0 10.0 10.0

N 15 30.0 30.0 40.0

A 25 50.0 50.0 90.0

SA 5 10.0 10.0 100.0

Total 50 100.0 100.0


42

Graph: Question 12

Question_13


Cumulative

Percent

Valid D 3 6.0 6.0 6.0

N 5 10.0 10.0 16.0

A 31 62.0 62.0 78.0

SA 11 22.0 22.0 100.0

Total 50 100.0 100.0

Graph: Question 13


43

Statistics


N Valid 50 50 50 50

Missing 0 0 0 0

Mean 3.8600 3.8600 3.7200 3.8200

Median 4.0000 4.0000 4.0000 4.0000

Mode 4.00 4.00 4.00 4.00

Sum 193.00 193.00 186.00 191.00

Question_14


Cumulative

Percent

Valid D 6 12.0 12.0 12.0

N 6 12.0 12.0 24.0

A 27 54.0 54.0 78.0

SA 11 22.0 22.0 100.0

Total 50 100.0 100.0

Graph: Question 14


44

Question_15


Cumulative

Percent

Valid D 3 6.0 6.0 6.0

N 7 14.0 14.0 20.0

A 34 68.0 68.0 88.0

SA 6 12.0 12.0 100.0

Total 50 100.0 100.0

Graph: Question15


45

Question_16


Cumulative

Percent

Valid SD 1 2.0 2.0 2.0

D 2 4.0 4.0 6.0

N 15 30.0 30.0 36.0

A 24 48.0 48.0 84.0

SA 8 16.0 16.0 100.0

Total 50 100.0 100.0

Graph: Question16


46

Question_17


Cumulative

Percent

Valid D 5 10.0 10.0 10.0

N 9 18.0 18.0 28.0

A 26 52.0 52.0 80.0

SA 10 20.0 20.0 100.0

Total 50 100.0 100.0

Graph: Question17


47

Statistics

Question_18 Question_19 Question_20

N Valid 50 50 50

Missing 0 0 0

Mean 4.2200 4.1800 4.3600

Median 4.0000 4.0000 4.5000

Mode 4.00 5.00 5.00

Sum 211.00 209.00 218.00

Question_18


Cumulative

Percent

Valid D 1 2.0 2.0 2.0

N 4 8.0 8.0 10.0

A 28 56.0 56.0 66.0

SA 17 34.0 34.0 100.0

Total 50 100.0 100.0

Graph: Question18


48

Question_19


Cumulative

Percent

Valid D 3 6.0 6.0 6.0

N 7 14.0 14.0 20.0

A 18 36.0 36.0 56.0

SA 22 44.0 44.0 100.0

Total 50 100.0 100.0

Graph: Question19


49

Question_20


Cumulative

Percent

Valid D 1 2.0 2.0 2.0

N 5 10.0 10.0 12.0

A 19 38.0 38.0 50.0

SA 25 50.0 50.0 100.0

Total 50 100.0 100.0

Graph: Question20

Statistics


N Valid 50 50

Missing 0 0

Mean 3.6600 3.2800

Median 4.0000 3.5000

Mode 4.00 4.00

Sum 183.00 164.00


50

Question_21


Cumulative

Percent

Valid SD 3 6.0 6.0 6.0

D 5 10.0 10.0 16.0

N 7 14.0 14.0 30.0

A 26 52.0 52.0 82.0

SA 9 18.0 18.0 100.0

Total 50 100.0 100.0

Graph: Question21


51

Question_22


Cumulative

Percent

Valid SD 2 4.0 4.0 4.0

D 13 26.0 26.0 30.0

N 10 20.0 20.0 50.0

A 19 38.0 38.0 88.0

SA 6 12.0 12.0 100.0

Total 50 100.0 100.0

Graph: Question22


52

Statistics


N Valid 50 50

Missing 0 0

Mean 3.6200 3.7400

Median 4.0000 4.0000

Mode 4.00 4.00

Sum 181.00 187.00

Question_23


Cumulative

Percent

Valid SD 2 4.0 4.0 4.0

D 2 4.0 4.0 8.0

N 18 36.0 36.0 44.0

A 19 38.0 38.0 82.0

SA 9 18.0 18.0 100.0

Total 50 100.0 100.0


53

Graph: Question23

Question_24


Cumulative

Percent

Valid D 3 6.0 6.0 6.0

N 14 28.0 28.0 34.0

A 26 52.0 52.0 86.0

SA 7 14.0 14.0 100.0

Total 50 100.0 100.0


54

Graph: Question24


55

Recommendations:

Because social media provides a new stage for brand marketing and consumers

are actively contributing to the communication by marketing brands, businesses have

become creative when trying to gain control of their marketing (Chi, 2011). So the

customers who use social sites to decide must be conscious. Analyzing the survey result

we can see that people are now using social medias for various purposes and they

consider it as a source of information for brand choice. Most of the respondent considers

various advantages that can be gained by using social medias for choosing brands and

they think that social media can be used for choosing brand. Most of respondent even

believe that social medias will become reliable source for brand information in future.

But all information in social medias is not always trustable so while making decision the

consumers should follow some rules.

· Information gathered from social medias must be verified.

· Before choosing brand all information about brand must be gathered.

· Information shared by trustable persons should be considered.

· Compare price, quality of recommended brands.

· Trust recommendation of expert persons.

· Visit the shared or liked pages but compare the brands before purchase.

· Always remain aware about the privacy of personal information.

While purchasing online or deciding the brand based of information shared in social sites

consumers’ must remember these facts.


56

Limitations:

Here the theories were approved by findings from survey and the research is able

to provide a certain degree of new insights in relating to the current situation but yet some

limitations may still exist.

· The above findings cannot represent all individuals who use social medias as a

whole,

· The decision making process involves psychological factors which may result in

different behavioral actions.

· The research result may lack objectivity.

Conclusion:

Social media has advanced from simply providing a platform for individuals to

stay in touch with their family and friends. Now it is a place where consumers can learn

more about their favorite companies and the products they sell. Marketers and retailers

are utilizing these sites as another way to reach consumers and provide a new way to

shop. “Technology related developments such as the rise of powerful search engines,

advanced mobile devices and interfaces, peer-to-peer communication vehicles, and online

social networks have extended marketers’ ability to reach shoppers through new touch

points” (Shankar et al. 2011, p-30). Not only marketers the consumers are also

benefitting. They can now gather information sitting in home; they can even shop in

home. People can consider different brand aspects and can use them to build their own

brand choice. This is the most obvious impact on consumer buying decisions from social

media. Folks ask friends for recommendation on social networks or consult social

networks such as Yelp for evaluations before buying a product. Friends offer unsolicited

recommendation either directly, through their endorsement of the brand, or indirectly, by

showing images of them with the brand or checking in at the location using apps like


57

Foursquare. Even social media has a big impact on evaluations — the weighing of

alternatives. Sometimes social networks impact evaluations by encouraging more

emotional and less cognitive factors in the process.

Social media impacts consumers decisions regarding brands because friends can

help you find the brand you decided to buy, talk you out of it if they don’t agree, maybe

even help find a way to pay for the item. Social media helps to overcome obstacles in the

way of buyers who have decided on a purchase. But social media can sometimes create

problems. It has a big impact on cognitive dissonance. Let’s say you just bought a new

car and a friend posts about a different new car they just bought and how wonderful it is.

Or, you just spent some money on a new dress and now your friends are talking about

taking a ski trip next weekend, but you don’t have the money. These can result in

Cognitive dissonance.

So, social media has a great impact in our choice. As it can influence our decision

making and brand choice we should be more conscious while using social media for

brand choice. More and more people now use social medias and the use is increasing so

the importance is also increasing. Social medias have become a part of our daily life and

the day when these social media will strictly decide the brand choice of user is not far.


58

References:

Chi, Hsu-Hsien. 2011. “Interactive Digital Advertising VS. Virtual Brand Community:

Exploratory Study of User Motivation and Social Media Marketing Responses in

Taiwan.” Journal of Interactive Advertising 12:p- 44-61.

Cox, Shirley A. 2010. “Online Social Network Member Attitude Toward Online

Advertising Formats.”MA thesis, The Rochester Institute of Technology.

Curran, Kevin, Sarah Graham, and Christopher Temple. 2011. “Advertising on

Facebook.” International Journal of E-Business Development 1: 26-33.

Delaney, J.; Salminen, N.; Lee, E. 2012. Infographic: The Growing Impact of Social

Media. Available:http://www.sociallyawareblog.com/2012/11/21/time-americans-

spend-per-month-on-social-media-sites/ Retrieved April 15, 2014.

Forbes, L.P., & Vespoli, E.M. (2013). Does social media influence consumer buying

behavior? An investigation of recommendations and purchases. Journal of

Business & Economics Research, 11(2), 107-111.

Ghauri, P. & Gronhaug, K. 2002. Research Methods in Business Studies, a Practical

Guide. Harlow: Financial Times. Prentice Hall.

Heineonen, K. (2011). Consumer activity in social media: Managerial approaches to

consumers' social media behavior. Journal of consumer Behavior , 10 (6), 356-

364.

Heinonen, Kristina. 2011. “Consumer activity in social media: Managerial approaches to

consumers’ social media behavior.” Journal of Consumer Behavior 10: 356-364.


59

James, J. How Much Data is Created Every Minute. http://www.domo.com /blog/

2012/06/ how-much-data-is-created-every-minute / Retrieved April 17, 2014

Jennifer Beese. (November 16, 2011). Social Networks Influence 74% of Consumers’

Buying Decisions. Available: http://sproutsocial.com/insights/social-networks-

influence-buying-decisions/. Last accessed 15 April, 2014.

Jennifer Pricci. (Sep 12, 2011). Nielsen social-media-report. Available:

http://www.slideshare.net/jenniferpricci/nielsen-socialmediareport. Last accessed

April 15,2014

Kaplan, Andreas M. and Michael Haenlein. 2010. “Users of the World, Unite! The

Challenges and Opportunities of Social Media.” Business Horizons 53: 59-68.

Kaplan Andreas M., Haenlein Michael (2010). "Users of the world, unite! The challenges

and opportunities of social media". Business Horizons 53 (1). p. 61.

Keller (2009). strategic brand management. 3rd ed. India: dorling kindersley. p27, p120-

128.

Kotler, Armstrong (2010). Principles of Marketing. 13th ed. USA: Pearson Education.

p490-522.

Lauren Drell. (December 18, 2011). Social Media Influence. Available:

http://mashable.com/2011/12/18/social-consumers-infographic/. Last accessed 15

April, 2014.

LinkedIn.(2013). Retrieved April17,2014 , from LinkedIn : http: //www. Linkedin .com /

company / linkedin


60

Malhotra, N. K., & Dash, S. (2012). Marketing Research: An Applied Orientation (6th

ed.). India: Dorling Kindersley.

McKinsey. (2011, October). Big Data:The next frontier for innovation,competetion and

productivity. Retrieved April 17, 2014

Mike Ewing. "social media referrals" http://blog.hubspot.com/blog/tabid/6307

/bid/30239/71-More-Likely-to-Purchase-Based-on-Social-Media-Referrals-

Infographic.aspx. n.p., January 9, 2012. Web. April 15, 2014.

Saunders, M., Lewis, P. & Thornhill, A. 2009. Research Methods for Business Students.

Fifth Edition. England: Pearson Education Limited.

Shankar,Venkatesh, Jeffery Inman, Murali Mantrala, Eileen Kelley, and Ross Rizley.

2011. “Innovations in Shopper Marketing: Current Insights and Future Research

Issues.” Journal of Retailing 1:s29-s42,

Sinclaire, Jollean K. and Clinton E. Vogus. 2011. “Adoption of social networking sites:

an exploratory adaptive structuration perspective for global organizations.”

Information Technology Management 12: 293-314

“State of the media: The social media report 2012". Featured Insights, Global, Media +

Entertainment. Nielsen. Retrieved 9 December 2012.

Steve Olenski. (2012). Are Brands Wielding More Influence In Social Media Than We

Thought?. Available: www.forbes.com/sites/marketshare/2012/05/07/are-brands-

wielding-more-influence-in-social-media-than-we-thought/. Last accessed April

15,2014 .

Taining, Y. (2012) The decision behavior of facebook users. Journal of Computer

Information Systems, 52(3), 50-59


61

Twitter-statistics. (2014, 1 1). Retrieved 4 17, 2014, from Twitter: http: // www.

statisticbrain. com/twitter-statistics/

Vinerean, S., Cetina, I., & Tichindelean, M. (2013). The effects of social media

marketing on online consumer behavior. International Journal of Business &

Management, 8(14), 66-69.

influence of social medias on brand choice

Business

brand choice

thesis paper

brand management

bba project paper

marketing research

department of accounting

supervisor imrana yasmin

letter of transmittal