ABSTRACT
As noted in marketing and consumer behavior literature, information that consumers get from their interpersonal sources invariably influences their decisions towards whether to purchase a particular brand. Even though advertisement commercials and other non-personal messages are also significant in the development of consumer awareness towards brands, products or services, word-of-mouth (WOM)—which is known as an act of exchanging marketing information among different customers—has been seen to play an even more critical role in changing consumer behavior and attitude toward different products and services. This study therefore seeks to investigate the effect of social media on online consumers. In order to attain this objective, the study focused on students of college management science in Al-Hikmah University Ilorin who are the users of selected social media platforms (such as instagram, Facebook, Twitter and BBM) as a case study. Convenience sampling technique was used to select the sample from the population of 911 college of management sciences students who are users of social media. With the aid of the sample size of 337was determined. Data were analyzed using frequency table, correlation and regression was used in testing the research hypotheses. The findings indicated that social media serves as a credible source for consumers’ decision making therefore social media marketing significantly affect online consumers decision. It was also discovered that social media have significant impact in communicating company product/brand to consumer. It was then recommended from the result of findings that Managers should be aware of the importance of social media sites in influencing online shopping by identifying and targeting different types of customers and taking initiatives to recognize and highlight customer interests.
CHAPTER ONE
INTRODUCTION
- Background to the Study
Human beings are social and nowadays, consumers are participating in variety of activities, from consuming content to sharing knowledge, experiences, opinions, and involved in discussion with other consumers online (Heinonen, 2011).
In the present competitive business world, marketers are now moving from the traditional brick and mortal world to marketing space, the ways in which most marketers interact with their respective customers has brings about quick response from company via their customer’s complaints. Technology advancement has brought about online business where both the buyer and seller meet together to interact for exchange of goods and services and where company’s engaged in other for them to promote their products. In recent years online environment is viewed by users from a new perspective, in a commercial way. Development and the emergence of online stores have turned users into consumers. Also the most important role of social media has changed the way of how consumers and marketers communicate (Hennig-Thurau, Gwinner & Walsh, 2004). Informational society influences affects the consumer decision processes and product evaluations. Social media provides a new channel to acquire product information through peer communication (Kozinets, 1999). Moreover, by using social media, consumers have the power to influence other buyers through reviews of products or services used. Consumers are also influenced by other psychosocial characteristics like: income, purchase motivation, company presentation, company or brand’s presence on social networks, demographic variable (age, sex, disposable income etc.), workplace method of payment, type of stores (online or physical), etc.
The unique aspects of social media and its immense popularity have revolutionized marketing practices such as advertising and promotion (Hanna, Rohn & Crittenden, 2011). Social media has also influenced consumer behavior from information acquisition to post-purchase behavior such as dissatisfaction statements or behaviors about a product or a company (Mangold & Faulds, 2009). In the last few years, it can be noticed that there is great influence of the companies on online networks. Social media websites provide an opportunity for businesses to engage and interact with potential consumers, encourage an increased sense of intimacy with consumers, and build all important relationships with potential consumers (Mersey, Davis, Malthouse & Calder, 2010). Organizations need to differentiate by the company or brand image through which to communicate distinctive advantages and positioning of the product. Many marketers believe that the organizations should aggressively promote only one advantage in the market concerned (Moise, 2011) and social networks in the online environment allows them to appear more attractive to consumers. The much higher level of efficiency of social media compared to other traditional communication channels prompted industry leaders to state that companies must participate in Facebook, Twitter, My space, YouTube, Blogs, Black Berry Messenger (BBM)among others, in order to succeed in online environments (Kaplan & Haenlein, 2010). The social media tools are used to communicate company brand to consumer, with this feedback is easy to get via using the social media tools by both company and consumers. Communication of brand/company and users help create a favorable or less favorable image of other users who read information posted and consider them in the information or purchase. Interactivity with target brand in social media is perceived differently by consumers depending on the message they convey (Shin, 2008). The perceived risk of purchasing and how much money are willing to pay for a product also determines the user to think more about the quality and the utility of the product( Ioanas, 2012).
