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A comprehensive study on Digital and social
media marketing on Consumer Behaviour
A Capstone Research Project Report
Submitted to
International Management Institute
Bhubaneswar
IN PARTIAL FULFILMENT FOR THE AWARD OF
POST GRADUATE DIPLOMA
In
MANAGEMENT
By
Soumyajit Karmakar
21PGDM-BHU102
2023
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Preface
As a part of PGDM curriculum and to gain practical knowledge in the field of management,
we are required to make a report on “A comprehensive study on Digital and social media
marketing on Consumer Behaviour”
By doing this project, we come to know about the importance of customer satisfaction and
customer loyalty. We also learn about the importance of conducting surveys and understand
the customer’s preferences.
We also got the opportunity to observe and understand the market trend in the city of
Bhubaneswar and its impact on the shopping behavior of people.
Last but not the least, we got to know about the importance of marketing strategies and how
they affect the shopping decisions of people.
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Acknowledgement
It gives me immense pleasure and a sense of satisfaction and contentment to present a Capstone
Research Report on “A comprehensive study on Digital and social media marketing on
Consumer Behaviour” The report is divided into five parts. The first part gives a brief
overview of the subject and its relevance in the current market. The second part discusses the
various theories, models, and frameworks related to the topic. The third part examines the
impact of the topic on the business environment. The fourth part evaluates the role of the firm
in achieving its goals and objectives. The final part provides the conclusion and highlights of
the report.The research conducted for the report was based on primary and secondary sources.
Primary sources include interviews with industry experts, surveys, and focus groups.
Secondary sources included online databases, books, journals, and other published materials.
The report is designed to provide an in-depth understanding of the subject, its implications for
businesses, and its role in the current competitive environment. It is expected that the findings
of the report will be useful to firms in developing their strategies and making informed
decisions.
The scope and complexity of my subject were significant, and I couldn't have finished this
project without the invaluable assistance and advice of numerous individuals. They provided
me with continuous feedback, recommendations, direction, and support on how to advance.
Their involvement has provided solid backing for the project. I would like to take this
opportunity to thank Prof. Pritish Kr Sahu.
Growing up, I was surrounded by people who believed in me and enabled me to reach my
potential. My parents were always there to listen to my ideas and provide guidance and support.
My siblings were there to provide encouragement and cheers of joy when I achieved something
I was proud of. My friends were also there to provide a different kind of support - comfort,
laughter and understanding.
Thanks to all of you, I have been able to persevere through difficult times and have the
confidence to take on new challenges. Your unwavering support has been an invaluable asset
and has enabled me to become the person I am today.
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Student’s Undertaking
I, Soumyajit Karmakar bearing Institute Roll.no 21PGDM-BHU102, declare that the capstone
project report titled “A comprehensive study on Digital and social media marketing on
Consumer Behaviour” is my original work and completed under the supervision of Prof.
Pritish Kr Sahu.
Signature:
Name: Soumyajit Karmakar
Date: 06.03.2023
Place: International Management Institute, Bhubaneswar
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Table of Contents
Sr. No. Content Page No.
1 Preface 2
2 Acknowledgement 3
3 Table of contents 6
4 Abstract 7
4 Introduction 8-11
5 Literature Review 12-14
6 Research Objective 15
7 Research Framework 15-16
9 Response Analysis 17-23
10 Data Analysis & Interpretation 24-30
11 Findings 31
12 Limitation 32
13 Conclusion 33
14 Annexure 34-37
16 References 38
17 Plagiarism Report 39
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Abstract
Digital and social media marketing is a dynamic concept in the field of consumer behaviour.
In the changing market and environment, the cognitive mind of people is constantly changing
and needs exploratory research to explore different factors that influence and trigger impulsive
buying decisions. The industry trends is changing drastically and it changes every day. Industry
sense and changing envirleadsnt lead to a change in consumer perception and we need to
explore that change from time to time. With the change in the business model, emergence of
business ethics and corporate social responsibility, there will be a change in consumer
perception and business practices. Hence, this research is done to achieve the same.
This project explores the concepts of a comprehensive study on Digital and social media
marketing on Consumer Behaviour. It aims to examine several factors that influence impulsive
buying behaviour among customers.
Literature Review resulted in several factors- Social Media Influencers, Social Media Trends,
Hedonic Motivation, Mood and situation, customer preferences, Promotion & Price. In
conducting an Exploratory Factor Analysis, a total of twenty variables were divided into three
factors- Social Media, Customer Preference & Stimuli, Promotion & Pricing. Hedonic
Motivation, Friends & Family influence were rejected in the factor analysis.
After conducting a logistic Regression, we found that Social Media factors and Customer
Preferences & Stimuli positively trigger the impulse buying behaviour oof consumer, whereas
Promotion & Price does not influence the impulse buying behaviour of the customer.
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Introduction
The everyday lives of a billion individual now include using this same internet, social networks,
smartphone applications, as well as other digital communication tools. For instance, there are
currently about 323 million internet consumers in India and about 3.2 billion worldwide. These
amounts are also elevated in younger individuals, that this next wave of global customers.
Additionally, people are spending more time online.
To market products or services, traditional methods like print ads, billboards, and TV or radio
commercials are used. In contrast, digital marketing utilizes a range of online channels like
social media, email marketing, search engine optimization, and internet advertising.
One of the main differences between traditional and digital marketing is the way in which
consumers interact with these methods. With traditional marketing, consumers are often
passive recipients of the message, while with digital marketing, consumers are able to engage
with the content and interact with the brand in a more active way. This two-way communication
can help to build stronger relationships between consumers and brands.Another difference is
the level of personalization that can be achieved with digital marketing. With the help of data
analytics, businesses can target specific audiences with personalized messaging, which can be
more effective at capturing the attention and interest of consumers.
However, it's important to note that traditional marketing still has its place in today's world,
especially for certain industries and demographics. For example, print ads may still be effective
for targeting older consumers who may not be as active online.
Ultimately, the most effective marketing strategies are those that are tailored to the specific
needs and preferences of the target audience. By understanding the strengths and limitations of
both traditional and digital marketing, businesses can develop a comprehensive approach that
incorporates the best of both worlds.
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Consumer Digital Culture
Consumer digital culture study takes the digital environments that customers are situated
in very seriously. Understanding how consumers' identities and self-concepts stretch into
digital realms, such as Belk's work, has been a crucial component of this research. Belk
expanded on his earlier research on the "ideal self" to take into account the ict tools in
which modern consumers find theirself. This is a vital step in the theory-building process
because it takes into account ideas like the possibility that customers may have numerous
selves in the a result of having various online "archetypes." Belk also identifies a number
of potential study topics. Other studies on this topic focused on more particular
occurrences. McQuarrie et al. concentrated on fashion blogging as a way to record the
"megaphone effect," which refers to the capacity of common consumers to reach big
crowds through digital/social media. This is a significant impact, and they addressed how
writers develop their readerships and amass social capital by exhibiting "good taste." This
basically means that what a blogger (or "influencer" in a context of social media) sets rules
that let others know she is an expert. Since signalling favourable personal characteristics
is probably a common reason for sharing specific things on platforms such as Facebook, it
has ramifications for minds of customer' information habits on social networks in general.
Research on customer behaviour has concentrated on how people respond to various
aspects of digital ads, or rather Ads is really a frequent topic in commercial books. Recent
pieces from different viewpoints examined the behavioural elements of digital advertising.
This few pieces presented an intriguing viewpoint on how to deal with (supposed)
psychiatric reactivity carried on by the customization of internet targeted advertising.
Today's internet users are dispersed throughout the globe and have increased demand in a
number of industries. New contact channels through digital media had made it possible to
involve customers in various business sectors. Internet tools are also multiplying quickly
to contact new clients. Many businesses have seen it happen as they become more involved
and well-known on social media. Their company grows quickly as a consequence of this.
According to reports, Facebook had close to 400 million members in 2010. A total of 1.5
million people are involved in commerce.
Sony revealed on Twitter in February of last year that they had made an additional $1.6
million. Following the direct client connection in June, Dell Company also saw a rise in
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its four businesses as a whole. It raises the issue like whether social networking is most
effective for well-known companies or whether it is beneficial for smaller brands.
Throughout 2009, social networking provided the solution using the fictitious case of a
tiny Canadian shoe business. The business was called John Fluevog Footwear and Shoes,
and after beginning social media advertising, they observed a 40 percent increase in
revenue. Social media is a new area of business study, but there is still some, Social media
provides a variety of management techniques for the situation just described. They provide
recommendations rather than experimental evidence for their methods. Social media had
looked into the user-tempting areas, per prior results. Additionally, they are looking for
relevant and interesting information (Vinerean.et.al, 2013). In his book from 2009, Larry
Weber argued that the internet is a novel promotional tool in which the public's perception
can change each extra few minutes, 15 min, or even 2nd, but the attitudes of consumers
towards products cannot start changing at such a fast rate.
So over recent years, digital networks has altered how businesses conduct online business,
and as a consequence, advertising on social media has established a distinct identity in the
commercial world. Numerous social networking websites exist that influence customer
behaviour. like YouTube, Facebook, Google+, etc. Nowadays, people of all categories use
social media, including those in the working class, college students, and even senior
citizens. Young people in their 20s and 30s use social media in millions. Social networking
sites like Facebook, MySpace, and Orkut have a variety of features that appeal to and
influence a large audience.
History's customers employ social media as an extremely powerful and practical instrument
when making purchases. Every consumer's existence has altered as a result of technology.
Due to their busy scheduler. Social media has become a platform for users to share
knowledge on how to purchase products online, eliminating the need for physical travel.
Additionally, customers can gather information about businesses and their background
through social networking sites, broadening their understanding beyond just the products.
Even social media encourages interaction between users and various stakeholders, such as
businesses, customers, society, and other stakeholders, who are players rather than viewers
in the purchase process.
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Consumers can use a variety of social media marketing tools, some of which include:
1. Social media monitoring.
2.Social media
3.Site marketing, third.
4. Promotion and tagging for social books.
5. Statistics and Social Metrics.
6.Social Union, number.
The ephemeral appeal of social media platforms like Google+, Facebook, Instagram, and others
is changing how people behave as consumers.
Process of the Digital Marketing of a Product:
 Marketing/prospecting to your target market and audience
 Building credibility and trust
 Escorting and courting the buyer through the process
 Presenting the product or service that meets their needs
 Closing the sale
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Literature Review
Social media has allowed companies to connect directly with customers by offering more
personalized experiences. Companies can create tailored messaging and offers that are
specifically designed to appeal to individual customers. Companies can also use social media
to engage customers in conversations and get feedback. Companies can leverage this feedback
to improve their products and services, as well as to create content that resonates with their
target audience.In addition to offering more personalized experiences, companies can also use
social media to create more targeted campaigns. Companies can use data gathered from their
followers to create campaigns that are tailored to their specific audience. Companies can also
use social media to reach new audiences and test the effectiveness of their campaigns.
Finally, companies can use social media to create more efficient customer service experiences.
Digital customer service tools such as live chat and automated messaging can be used to
quickly respond to customer inquiries and complaints. Companies can also use social media to
create more engaging customer service experiences, such as offering discounts and running
contests.
It also provides them with an opportunity to reach a wider audience, spread brand awareness,
and increase sales. Furthermore, social media platforms can be used to monitor customer
opinions and attitudes, enabling businesses to respond to customer comments and complaints
quickly (Göker and Türker, 2018). This can help to strengthen customer loyalty and trust in the
company.Today's internet users are dispersed throughout the globe and have increased demand
in a number of industries. New contact channels through digital media had made it possible to
involve customers in various business sectors. Internet tools are also multiplying quickly to
contact new clients. Recent marketing studies indicate that social media is interfering with
people's lives and increasing their dependence. With billions and billions of clients, the
marketing strategies are amazing. The entire globe accesses social media platforms such as
Facebook, Twitter, and blogs for roughly 1.7 trillion minutes each year (Tuten and Solomon,
2014). Users of social media grew by up to 24percent last year, according to analysis. The
aforementioned element does not cast any question on how business intersects with people's
lives via social media. Social media enhances engagement by making material available to the
public and piqueing visitors' interest. Social media platforms are instruments for informing
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customers. Inside and outside of the workplace, people are disseminating private or public
information.
Andrew Stephen T. (2016)
1. Consumer Digital Culture - The first theme focuses on understanding how digital culture is
shaping the behavior and attitudes of consumers. This includes understanding the impact of
digital technologies on consumer trust, loyalty, and engagement. Additionally, it looks at how
social media is impacting how people interact with brands, how they perceive the value of
products and services, and how they are making decisions.
2. Reactions to Digital Advertising - The second theme looks at the effectiveness of digital
advertising, in particular how consumers respond to different types of digital advertising.
This includes examining the impact of creative elements, such as visuals and messaging, on
consumer behavior and attitudes.
3. Impacts of Online Spaces on Customer Behaviour - The third theme focuses on how online
spaces, such as websites, forums, and social networks, are influencing customer behaviors.
This includes understanding how different types of content, such as product reviews and
testimonials, are impacting customer decision making.
4. Mobile Environments - The fourth theme looks at the impact of mobile environments, such
as apps and messaging services, on consumer behavior. This includes examining how the use
of mobile technology is influencing the way people interact with brands, how they consume
content, and how they make decisions.
5. Understanding Consumer
On the other hand, with digital marketing, the budget allocated to each of these channels can
be easily quantified. This is because digital marketing is highly trackable and measurable. We
can measure the effectiveness of campaigns through detailed analytics and A/B testing, which
helps us to determine the ROI of each digital marketing campaign. We can also create targeted
campaigns and use behavioural insights to further customise our campaigns. Through our
digital efforts, we can easily monitor our customer databases, track their behaviour, and adapt
our campaigns to their needs. We can also use data-driven insights to identify opportunities
and trends to better engage with our target markets.In conclusion, using digital and social media
marketing strategies is the best way to increase sales, lower our marketing costs and remain
relevant in the market for the next five years. Digital marketing allows us to track customer
behaviour, monitor our competitors, create targeted campaigns and use data insights to better
personalise our campaigns. In this way, we can remain competitive and continue to generate
revenue in the future.
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To promote their products, companies are increasingly using influencers to reach a wider
audience. Influencers have the ability to garner attention and build a relationship with their
followers, thus leading to a positive attitude towards the brand and product (Gaedtke, 2021).
They also create an image of trustworthiness and credibility, which encourages people to
purchase the product. This is especially effective for luxury brands, where consumers are more
likely to trust an influencer than a conventional advertisement. The use of influencers in
marketing communication has become increasingly popular, as it allows companies to connect
with their target audiences in a more personalized and authentic way. Influencers are seen as
more credible than traditional advertising, as they have a direct connection with their followers
and can be trusted. Companies can also use influencers to create a dialogue with their audience
and build a stronger relationship. Furthermore, influencers can provide a unique perspective on
a product or brand, which is seen as more trustworthy than a generic advertisement.
In conclusion, influencer marketing is an effective tool for companies to reach their target
audiences and promote their products. It allows for a more personalized and authentic approach
to marketing communication, and is seen as more credible and trustworthy than traditional
advertising. Influencers can also help companies build
Impulse purchases can be a form of instant gratification, but they can also put a dent in your
budget. Additionally, there is the potential for buyer’s remorse or guilt after making the
purchase, which can make the initial feeling of happiness short-lived. Therefore, it is important
to weigh the pros and cons when considering an impulse purchase.
The use of online retailing platforms and digital marketing strategies can be used to encourage
customers to make spontaneous purchases. These strategies include employing persuasive
techniques such as discounts, free gifts, and free shipping, as well as creating an appealing
website design (visuals, user experience, and web navigation) that draws customers in. The use
of social media platforms and influencers can also be used to reach potential customers and
encourage them to purchase products spontaneously. Additionally, the use of predictive
analytics can help marketers target customers with personalized promotions and offers, thus
increasing the likelihood of customers making spontaneous purchases.
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Research Objective:
 The aim is to investigate how digital marketing affects consumer purchasing decisions
and determine if consumers are cognizant of the role that digital channels play in
influencing their buying behavior.
 The objective is to assess the different channels that consumers favor when making
purchasing decisions compared to traditional channels.
 To analyze the impact of social media on consumer buying behavior
Research Methodology:
This study primarily focuses on the factors and motivation that impact Role of Digital and
Social Media marketing on Consumer Behaviour.
o The questionnaire was structured to evaluate the factors discussed in the literature
review, with participants being asked to rate their responses on a scale of 1 to 5, with 1
being strongly disagree and 5 being strongly agree.
o The participants were queried on their history with online shopping, their attitude
toward making impulsive purchases, and their thoughts on the factors that impact their
impulse buying habits.
o The study findings indicate that most individuals refrain from impulsive buying and
prefer conducting research before purchasing a product. Moreover, the study revealed
that the majority of the respondents seek a diverse range of options while shopping
online. The research further highlights that website quality, trust, ethical values, and
situational variables are the main factors affecting consumer behavior. The study
employed logistic regression to create a model and predict the outcomes.
o The study utilized logistic regression analysis to examine the impact of the independent
variable (use of social media or digital marketing) on the dependent variable, which is
categorical and binary in nature (consumer's purchasing behavior).
o There was not enough variance in the data to determine the relevance of the
Discriminant Model. Hence ran a Logistic Regression to understand which variables
are able to Establishing the factors that impact Role of Digital and Social Media
marketing on Consumer Behaviour.
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 Conducted Secondary research with the help of a Literature review (Reports, Past Studies
& Research Papers and articles) to conceptualise the topic.
Research Framework:
The google form was shared with students and friends across different Business schools,
Undergraduate Colleges and Schools; professionals in organisations and colleagues. The
sample size was 111. The sampling method used is Convenient Sampling.
Data Collection: Primary Data (Survey)
Demographic Questions:
1. Age
2. Gender
3. Education Qualification
4. Income per annum
5. Employment status
Dependent Variable (Dichotomous Question):
On overall, considering everything, the overall impact of social media and Digital Marketing
on consumer buying behaviour
Independent Variables-
 Preference of Social Media Platform
1. Facebook
2. Instagram
3. Youtube
4. Whatsapp
5. Friends and Family often influence my impulse buying behaviour.
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Response Analysis:
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Logistic Regression:
Ran Logistic regression with the Factors that are included in the discriminant function to
understand what is the exact association of these factors with the of impact of social media and
digital marketing on consumer behaviour.
Divided the data into test data and training data.
There are 66 training data. There are 45 Test Data.
Training data is used for Model creation and Test data is used for Validation.
To run logistic regression, the two categorical variables- ‘1 means = There is impact’ '0
means = There is no impact', that are included in the discriminant analysis has to be loaded
into the test and training data.
X_train = train_df[['Preference','Social Media Ads','Information about different
products','Reviews','Social Media Advertising', 'Popularity','Watch Influencer','Tell my
friends','Brand Presence over social media', 'Credibility of Youtube influencer',
'Brand community','Compare products','Directly from brand page','Purchasing
time and cost saving','Male']]
y_train = train_df[["Impact"]]
X_test = test_df[['Preference','Social Media Ads','Information about different
products','Reviews','Social Media Advertising', 'Popularity','Watch Influencer','Tell my
friends','Brand Presence over social media', 'Credibility of Youtube influencer',
'Brand community','Compare products','Directly from brand page','Purchasing
time and cost saving','Male']]
y_test = test_df[["Impact"]]
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Ran Logistic Regression-
from sklearn.linear_model import LogisticRegression
logreg = LogisticRegression()
logreg.fit(X_train,y_train)
Accuracy: 0.8888
The Accuracy of the Model is 0.888, which is 88.88%. It can be concluded that the model
formed is a good model which can predict with an accuracy of 88.88%.
The precision of a confusion matrix serves as an indicator of the accuracy of a classification
model. The calculation involves dividing the number of true positives (TP) by the sum of true
positives and false positives (FP). The outcome denotes the percentage of predicted positive
cases that are indeed positive. A higher precision score denotes a more precise model.
“Precision” of the model is 90.24%
The recall of a confusion matrix assesses the comprehensiveness of a classification model. To
calculate it, the number of true positives (TP) is divided by the sum of true positives and false
negatives (FN). The output reflects the percentage of actual positive cases that the model could
detect. A higher recall score implies a more precise model.
“Recall” of the model is 97.37%
The Coefficients of the model are:
Intercept -2.885
Male -0.318
Preference -0.109
Social Media Ads 0.013
Information about different products 0.334
Reviews -0.438
Two Way interaction 0.049
Popularity 0.404
Watch Influencer Review before Purchasing online
0.132
Tell my friends 0.017
Brand Presence over social media -0.086
Credibility of Youtube influencer 0.726
Brand community -0.124
Compare products 0.473
Directly from brand page 0.354
Purchasing time and cost saving -0.636
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Model:
Logit= -2.885 – 0.318*(Male) – 0.109*(Preference) + 0.013*(Social Media Ads) +
0.334*(Information about different product) - 0.438*(Reviews) - 0.049*( Two Way
interaction) + 0.404*(Popularity) + 0.132*( Watch Influencer Review before Purchasing
online) + 0.017*(Tell my friends) - 0.086*( Brand Presence over social media) + 0.726*(
Credibility of Youtube influencer) - 0.124* (Brand community) + 0.473*( Compare products)
+ 0.354*( Directly from brand page) – 0.636*( Purchasing time and cost saving)
Odd Ratio:
 The odds of impact of social media and digital marketing on consumer behaviour in Male
0.728 times than that of a female customer.
 One Unit increase in Preference would decrease the odds of impact of social media and
digital marketing on consumer behaviour by 0.896 times.
 One Unit increase in Social Media Ads would increase the odds of impact of social media
and digital marketing on consumer behaviour by 1.103 times.
 One Unit increase in Information about different products would decrease the odds of
impact of social media and digital marketing on consumer behaviour by 1.396 times.
 One Unit increase in Reviews would increase the odds of impact of social media and digital
marketing on consumer behaviour by 0.645 times.
Intercept 0.056
Male 0.728
Preference 0.896
Social Media Ads 1.103
Information about different products 1.396
Reviews 0.645
Two Way interaction 1.050
Popularity 1.498
Watch Influencer Review before Purchasing online
1.141
Tell my friends 1.017
Brand Presence over social media 0.918
Credibility of Youtube influencer 2.065
Brand community 0.884
Compare products 1.604
Directly from brand page 1.420
Purchasing time and cost saving 0.529
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 One Unit increase in Two Way Interaction would increase the odds of impact of social
media and digital marketing on consumer behaviour by 1.050 times.
 One Unit increase in Popularity would decrease the odds of impact of social media and
digital marketing on consumer behaviour by 1.498 times.
 One Unit increase in Watch Influencer Review before Purchasing online would increase
the odds of impact of social media and digital marketing on consumer behaviour by 1.141
times.
 One Unit increase in Tell my friends would increase the odds of impact of social media
and digital marketing on consumer behaviour by 1.017 times.
 One Unit increase in Brand Presence over social media would increase the odds of impact
of social media and digital marketing on consumer behaviour by 0.918 times.
 One Unit increase in Credibility of Youtube influencer would decrease the odds of impact
of social media and digital marketing on consumer behaviour by 2.065 times.
 One Unit increase in Brand Community would increase the odds of impact of social media
and digital marketing on consumer behaviour by 0.884 times.
 One Unit increase in Compare products would decrease the odds of impact of social
media and digital marketing on consumer behaviour by 1.604 times.
 One Unit increase in Directly from brand page would increase the odds of impact of
social media and digital marketing on consumer behaviour by 1.420 times.
 One Unit increase in Purchasing time and cost saving would increase the odds of impact
of social media and digital marketing on consumer behaviour by 0.529 times.
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Relation between demographic factors and impact of social media and
digital marketing on consumer behaviour:
As per the literature review, consumer demographics might influence consumers’ impulsive
buying behaviour. There is a need to establish the fact whether there is any association between
two variables, that is a demographic variable and the of impact of social media and digital
marketing on consumer behaviour.
Running a chi-square test between Age-group, education qualification, Gender, Income,
employment status & impulsive buying decision to conclude, whether the demographics have
any association or not.
Chi-Square Test:
1. Age Group-
H0: There is no association between age-group and impact of social media and digital
marketing on consumer behaviour.
H1: There is an association between age-group and impact of social media and digital
marketing on consumer behaviour.
The p-value (Sig.) is 0.057 which is more than 0.05 significant level (p-value > 0.05). Hence,
the null hypothesis is accepted. There is no association between age and the impact of social
media and digital marketing on consumer behaviour.
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2. Education Qualification-
H0: There is no association between education qualification and the impact of social media and
digital marketing on consumer behaviour.
H1: There is an association between education qualification and the impact of social media and
digital marketing on consumer behaviour.
The p-value (Sig.) is 0.103 which is more than 0.05 significant level (p-value > 0.05). Hence,
the null hypothesis is accepted. There is no association between education qualification and the
impact of social media and digital marketing on consumer behaviour.
3. Gender-
H0: There is no association between gender and the impact of social media and digital
marketing on consumer behaviour.
H1: There is an association between gender and the impact of social media and digital
marketing on consumer behaviour.
The p-value (Sig.) is 0.390 which is more than 0.05 significant level (p-value > 0.05). Hence,
the null hypothesis is accepted. There is no association between gender and the the impact of
social media and digital marketing on consumer behaviour.
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4. Income-
H0: There is no association between income and impact of social media and digital
marketing on consumer behaviour.
H1: There is an association between income and impact of social media and digital
marketing on consumer behaviour.
The p-value (Sig.) is 0.244 which is more than 0.05 significant level (p-value > 0.05). Hence,
the null hypothesis is accepted. There is no association between income and impact of social
media and digital marketing on consumer behaviour.
5. Employment Status-
H0: There is no association between Employment status and impact of social media and
digital marketing on consumer behaviour.
H1: There is an association between employment status and impact of social media and
digital marketing on consumer behaviour.
The p-value (Sig.) is 0.856 which is more than 0.05 significant level (p-value > 0.05). Hence,
the null hypothesis is accepted. There is no association between occupation and the impact of
social media and digital marketing on consumer behaviour.
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Findings and Managerial Implications
1. The impact of social media and digital marketing on consumer behaviour, depends on the
mood, emotional and product stimuli, and the trend in the market. Hence there is no specific
product category that is preferred by the consumers.
2. Out of 111 respondents, 91 that is the majority of respondents, think that online shopping
portals and platforms have highly influenced their impact of social media and digital
marketing on consumer behaviour.
3. The findings of the study also indicate that Referral and Trust are the most significant
factors for customer buying behaviour in the online shopping.
4. This study model is statistically significant, but the factors cannot fully explain the
dependent variable.
5. As per the study Age group, Education Qualification, Income, Employment Status and
Gender has no association with impulsive buying decision. Emotional stimuli have more
association with impulsive purchasing, hence age-group, education, Employment Status,
Gender and income have no association.
6. The factors that are formed are correctly classified. The model is statistically significant
and is good in terms of prediction accuracy.
7. With the help of crosstabs, I could figure out the preferred social media platforms across
different age-groups and people across different backgrounds.
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Limitation
1. As Data is limited to 111 Responses.
2. The majority of the respondents are students in a specific age group, income group and
education qualification. There is a possibility that due to this unequal distribution, the
variance in the discriminant data is not being explained properly.
3. The 4 factors that has significant impact on the customer buying behaviour suggests that
social media has a major impact on consumer buying decisions.
4. The brands should focus on these 4 factors when they are looking to market their products
on social media as it impacts the consumers in the pre-purchase stage.
5. The age-group 18-23 and 24-28 are mostly impacted by social media platforms Instagram
and Facebook when they purchase online so the brands should focus on the social media
handles and work on the 4 factors mentioned in the study if their target segment falls under
this age-group
33
Conclusion
From the studies conducted, it can be concluded that digital and social media marketing have
a major impact on consumer behaviour. Consumers are becoming increasingly exposed to
digital and media marketing through various channels such as online search, online advertising,
and social media platforms. This increased exposure has led to an increased level of
engagement with these marketing activities, resulting in a greater level of purchase decisions
being influenced by digital and social media marketing. Furthermore, the use of digital and
social media marketing has also been found to have a positive effect on consumer loyalty and
advocacy.
Overall, the findings from this study suggest that digital and social media marketing are a
powerful tool for influencing consumer behaviour. For businesses, this means that they should
be leveraging digital and social media marketing to reach their target audiences, increase brand
awareness, and ultimately increase sales. Furthermore, businesses should be aware of the
potential implications of digital and social media marketing on consumer behaviour, and should
ensure that their strategies are in line with the goals of their customers.
34
Annexure
1.Gender*
Male
Female
2. Age Group*
Less than 18
18-23
24-28
29-35
Above 35
3. Employment Status*
Student
Business
Service
Professional
4. Income Level*
Not Applicable
Less than 10000
11000 - 30000
31000-50000
Above 50000
5. Education*
High School
Graduation
Post-Graduation
Phd
others
6. Preference of Social Media Platform*
Facebook
Instagram
Youtube
Whatsapp
Snapchat
7. Social media ads are more informative as compared to traditional media.
*
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
35
8. I get information about different products through social media i.e., Facebook, Twitter,
YouTube, blogs etc.
*
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
9. The reviews from my friends and family over social media helps me in purchasing that
particular product online.
*
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
10. Social media advertising provides two-way interactions between the buyer and seller.
*
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
11. The popularity of the brand over social media helps me in purchasing products from that
particular brand.
*
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
12. I prefer to watch the reviews of influencers before purchasing products online.
*
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
13. I usually tell my friends about the advertisement of social media and the product then
share it.
*
36
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
14. The brands presence over social media helps in providing information about the brand
and their product range or new product launches.
*
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
15. The credibility of YouTube influencers, bloggers influences my buying decision
*
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
16. Social media allows to interact with the brand community to know more about the
products of the brand.
*
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
17. I like to compare products from different brands over social media.
*
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
18. I prefer to purchase directly from the Digital media page of the brand.
*
Strongly disagree
Disagree
Neutral
37
Agree
Strongly agree
19. Digital media reduces the purchasing time as well as the cost while purchasing products
online.
*
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
20. On overall, considering everything, the overall impact of social media and Digital
Marketing on consumer buying behaviour
*
Yes
No
38
References
Bayley, G., & Nancarrow, C. (1998). Impulse purchasing: a qualitative exploration of
the phenomenon. Qualitative market Research: An International Journal, 1(2):99-114.
Rook, D.W. (1987). The buying Impulse. Journal of Consumer Research, 14(2):189-
199.
Thompson, Craig J., Locander, William B.&Pollio, Howard R. (1990). The lived
meaning of free choice: An existential-phenomenologica l description of everyday
consumer experiences of contemporary married women. Journal of Consumer
Research, 17, 346–361.
Weinberg, Peter, & Gottwald, Wolfgang. (1982). Impulsive consumer buying as a result
of emotions. Journal of Business Research, 10, 43–57
Rook, DennisW., &Gardner, Meryl. (1993). In the mood: Impulse buying’s affective
antecedents. Research in Consumer Behavior (Vol. 6, pp.1–28)
Rook, DennisW.,&Hoch, Stephen J. (1985). Consuming impulses. InMorris Holbrook
and Elizabeth Hirschman (Eds.), Advances in Consumer Research (Vol. 12, pp. 23–27).
Provo, UT: Association for Consumer Research.
Hoch, Stephen J.,&Loewenstein, George F. (1991). Time-inconsistent preferences and
consumer self-control. Journal of Consumer Research, 17, 492–507.
Mick, David Glen, DeMoss, Michelle, & Faber, Ronald J. (1992). A projective study of
motivations and meanings of self-gifts: Implications for retail management. Journal of
Retailing, 68, 122–144.
Dittmar, Helga, Beattie, Jane, & Friese, Susanne. (1995). Gender identity and material
symbols: Objects and decision considerations in impulse purchases. Journal of
Economic Psychology, 16, 491–511.
Bellenger, Danny N., Robertson, Dan H.,&Hirschman , Elizabeth C. (1978). Impulse
buying varies by product. Journal of Advertising Research, 18, 15–18.
Statistica Global Consumer Survey, 2019
Zheng, Y., Yang, X., Liu, Q., Chu, X., Huang, Q. and Zhou, Z. (2020), “Perceived stress
and online compulsive buying among women: a moderated mediation model”,
Computers in Human Behavior, Vol. 103, pp. 13-20, doi: 10.1016/j.chb.2019.09.012.
39
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Impact of Digital and Social Media Marketing on Consumer Behaviour

  • 1. A comprehensive study on Digital and social media marketing on Consumer Behaviour A Capstone Research Project Report Submitted to International Management Institute Bhubaneswar IN PARTIAL FULFILMENT FOR THE AWARD OF POST GRADUATE DIPLOMA In MANAGEMENT By Soumyajit Karmakar 21PGDM-BHU102 2023
  • 2. 2 Preface As a part of PGDM curriculum and to gain practical knowledge in the field of management, we are required to make a report on “A comprehensive study on Digital and social media marketing on Consumer Behaviour” By doing this project, we come to know about the importance of customer satisfaction and customer loyalty. We also learn about the importance of conducting surveys and understand the customer’s preferences. We also got the opportunity to observe and understand the market trend in the city of Bhubaneswar and its impact on the shopping behavior of people. Last but not the least, we got to know about the importance of marketing strategies and how they affect the shopping decisions of people.
  • 3. 3 Acknowledgement It gives me immense pleasure and a sense of satisfaction and contentment to present a Capstone Research Report on “A comprehensive study on Digital and social media marketing on Consumer Behaviour” The report is divided into five parts. The first part gives a brief overview of the subject and its relevance in the current market. The second part discusses the various theories, models, and frameworks related to the topic. The third part examines the impact of the topic on the business environment. The fourth part evaluates the role of the firm in achieving its goals and objectives. The final part provides the conclusion and highlights of the report.The research conducted for the report was based on primary and secondary sources. Primary sources include interviews with industry experts, surveys, and focus groups. Secondary sources included online databases, books, journals, and other published materials. The report is designed to provide an in-depth understanding of the subject, its implications for businesses, and its role in the current competitive environment. It is expected that the findings of the report will be useful to firms in developing their strategies and making informed decisions. The scope and complexity of my subject were significant, and I couldn't have finished this project without the invaluable assistance and advice of numerous individuals. They provided me with continuous feedback, recommendations, direction, and support on how to advance. Their involvement has provided solid backing for the project. I would like to take this opportunity to thank Prof. Pritish Kr Sahu. Growing up, I was surrounded by people who believed in me and enabled me to reach my potential. My parents were always there to listen to my ideas and provide guidance and support. My siblings were there to provide encouragement and cheers of joy when I achieved something I was proud of. My friends were also there to provide a different kind of support - comfort, laughter and understanding. Thanks to all of you, I have been able to persevere through difficult times and have the confidence to take on new challenges. Your unwavering support has been an invaluable asset and has enabled me to become the person I am today.
  • 4. 4 Student’s Undertaking I, Soumyajit Karmakar bearing Institute Roll.no 21PGDM-BHU102, declare that the capstone project report titled “A comprehensive study on Digital and social media marketing on Consumer Behaviour” is my original work and completed under the supervision of Prof. Pritish Kr Sahu. Signature: Name: Soumyajit Karmakar Date: 06.03.2023 Place: International Management Institute, Bhubaneswar
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  • 6. 6 Table of Contents Sr. No. Content Page No. 1 Preface 2 2 Acknowledgement 3 3 Table of contents 6 4 Abstract 7 4 Introduction 8-11 5 Literature Review 12-14 6 Research Objective 15 7 Research Framework 15-16 9 Response Analysis 17-23 10 Data Analysis & Interpretation 24-30 11 Findings 31 12 Limitation 32 13 Conclusion 33 14 Annexure 34-37 16 References 38 17 Plagiarism Report 39
  • 7. 7 Abstract Digital and social media marketing is a dynamic concept in the field of consumer behaviour. In the changing market and environment, the cognitive mind of people is constantly changing and needs exploratory research to explore different factors that influence and trigger impulsive buying decisions. The industry trends is changing drastically and it changes every day. Industry sense and changing envirleadsnt lead to a change in consumer perception and we need to explore that change from time to time. With the change in the business model, emergence of business ethics and corporate social responsibility, there will be a change in consumer perception and business practices. Hence, this research is done to achieve the same. This project explores the concepts of a comprehensive study on Digital and social media marketing on Consumer Behaviour. It aims to examine several factors that influence impulsive buying behaviour among customers. Literature Review resulted in several factors- Social Media Influencers, Social Media Trends, Hedonic Motivation, Mood and situation, customer preferences, Promotion & Price. In conducting an Exploratory Factor Analysis, a total of twenty variables were divided into three factors- Social Media, Customer Preference & Stimuli, Promotion & Pricing. Hedonic Motivation, Friends & Family influence were rejected in the factor analysis. After conducting a logistic Regression, we found that Social Media factors and Customer Preferences & Stimuli positively trigger the impulse buying behaviour oof consumer, whereas Promotion & Price does not influence the impulse buying behaviour of the customer.
  • 8. 8 Introduction The everyday lives of a billion individual now include using this same internet, social networks, smartphone applications, as well as other digital communication tools. For instance, there are currently about 323 million internet consumers in India and about 3.2 billion worldwide. These amounts are also elevated in younger individuals, that this next wave of global customers. Additionally, people are spending more time online. To market products or services, traditional methods like print ads, billboards, and TV or radio commercials are used. In contrast, digital marketing utilizes a range of online channels like social media, email marketing, search engine optimization, and internet advertising. One of the main differences between traditional and digital marketing is the way in which consumers interact with these methods. With traditional marketing, consumers are often passive recipients of the message, while with digital marketing, consumers are able to engage with the content and interact with the brand in a more active way. This two-way communication can help to build stronger relationships between consumers and brands.Another difference is the level of personalization that can be achieved with digital marketing. With the help of data analytics, businesses can target specific audiences with personalized messaging, which can be more effective at capturing the attention and interest of consumers. However, it's important to note that traditional marketing still has its place in today's world, especially for certain industries and demographics. For example, print ads may still be effective for targeting older consumers who may not be as active online. Ultimately, the most effective marketing strategies are those that are tailored to the specific needs and preferences of the target audience. By understanding the strengths and limitations of both traditional and digital marketing, businesses can develop a comprehensive approach that incorporates the best of both worlds.
  • 9. 9 Consumer Digital Culture Consumer digital culture study takes the digital environments that customers are situated in very seriously. Understanding how consumers' identities and self-concepts stretch into digital realms, such as Belk's work, has been a crucial component of this research. Belk expanded on his earlier research on the "ideal self" to take into account the ict tools in which modern consumers find theirself. This is a vital step in the theory-building process because it takes into account ideas like the possibility that customers may have numerous selves in the a result of having various online "archetypes." Belk also identifies a number of potential study topics. Other studies on this topic focused on more particular occurrences. McQuarrie et al. concentrated on fashion blogging as a way to record the "megaphone effect," which refers to the capacity of common consumers to reach big crowds through digital/social media. This is a significant impact, and they addressed how writers develop their readerships and amass social capital by exhibiting "good taste." This basically means that what a blogger (or "influencer" in a context of social media) sets rules that let others know she is an expert. Since signalling favourable personal characteristics is probably a common reason for sharing specific things on platforms such as Facebook, it has ramifications for minds of customer' information habits on social networks in general. Research on customer behaviour has concentrated on how people respond to various aspects of digital ads, or rather Ads is really a frequent topic in commercial books. Recent pieces from different viewpoints examined the behavioural elements of digital advertising. This few pieces presented an intriguing viewpoint on how to deal with (supposed) psychiatric reactivity carried on by the customization of internet targeted advertising. Today's internet users are dispersed throughout the globe and have increased demand in a number of industries. New contact channels through digital media had made it possible to involve customers in various business sectors. Internet tools are also multiplying quickly to contact new clients. Many businesses have seen it happen as they become more involved and well-known on social media. Their company grows quickly as a consequence of this. According to reports, Facebook had close to 400 million members in 2010. A total of 1.5 million people are involved in commerce. Sony revealed on Twitter in February of last year that they had made an additional $1.6 million. Following the direct client connection in June, Dell Company also saw a rise in
  • 10. 10 its four businesses as a whole. It raises the issue like whether social networking is most effective for well-known companies or whether it is beneficial for smaller brands. Throughout 2009, social networking provided the solution using the fictitious case of a tiny Canadian shoe business. The business was called John Fluevog Footwear and Shoes, and after beginning social media advertising, they observed a 40 percent increase in revenue. Social media is a new area of business study, but there is still some, Social media provides a variety of management techniques for the situation just described. They provide recommendations rather than experimental evidence for their methods. Social media had looked into the user-tempting areas, per prior results. Additionally, they are looking for relevant and interesting information (Vinerean.et.al, 2013). In his book from 2009, Larry Weber argued that the internet is a novel promotional tool in which the public's perception can change each extra few minutes, 15 min, or even 2nd, but the attitudes of consumers towards products cannot start changing at such a fast rate. So over recent years, digital networks has altered how businesses conduct online business, and as a consequence, advertising on social media has established a distinct identity in the commercial world. Numerous social networking websites exist that influence customer behaviour. like YouTube, Facebook, Google+, etc. Nowadays, people of all categories use social media, including those in the working class, college students, and even senior citizens. Young people in their 20s and 30s use social media in millions. Social networking sites like Facebook, MySpace, and Orkut have a variety of features that appeal to and influence a large audience. History's customers employ social media as an extremely powerful and practical instrument when making purchases. Every consumer's existence has altered as a result of technology. Due to their busy scheduler. Social media has become a platform for users to share knowledge on how to purchase products online, eliminating the need for physical travel. Additionally, customers can gather information about businesses and their background through social networking sites, broadening their understanding beyond just the products. Even social media encourages interaction between users and various stakeholders, such as businesses, customers, society, and other stakeholders, who are players rather than viewers in the purchase process.
  • 11. 11 Consumers can use a variety of social media marketing tools, some of which include: 1. Social media monitoring. 2.Social media 3.Site marketing, third. 4. Promotion and tagging for social books. 5. Statistics and Social Metrics. 6.Social Union, number. The ephemeral appeal of social media platforms like Google+, Facebook, Instagram, and others is changing how people behave as consumers. Process of the Digital Marketing of a Product:  Marketing/prospecting to your target market and audience  Building credibility and trust  Escorting and courting the buyer through the process  Presenting the product or service that meets their needs  Closing the sale
  • 12. 12 Literature Review Social media has allowed companies to connect directly with customers by offering more personalized experiences. Companies can create tailored messaging and offers that are specifically designed to appeal to individual customers. Companies can also use social media to engage customers in conversations and get feedback. Companies can leverage this feedback to improve their products and services, as well as to create content that resonates with their target audience.In addition to offering more personalized experiences, companies can also use social media to create more targeted campaigns. Companies can use data gathered from their followers to create campaigns that are tailored to their specific audience. Companies can also use social media to reach new audiences and test the effectiveness of their campaigns. Finally, companies can use social media to create more efficient customer service experiences. Digital customer service tools such as live chat and automated messaging can be used to quickly respond to customer inquiries and complaints. Companies can also use social media to create more engaging customer service experiences, such as offering discounts and running contests. It also provides them with an opportunity to reach a wider audience, spread brand awareness, and increase sales. Furthermore, social media platforms can be used to monitor customer opinions and attitudes, enabling businesses to respond to customer comments and complaints quickly (Göker and Türker, 2018). This can help to strengthen customer loyalty and trust in the company.Today's internet users are dispersed throughout the globe and have increased demand in a number of industries. New contact channels through digital media had made it possible to involve customers in various business sectors. Internet tools are also multiplying quickly to contact new clients. Recent marketing studies indicate that social media is interfering with people's lives and increasing their dependence. With billions and billions of clients, the marketing strategies are amazing. The entire globe accesses social media platforms such as Facebook, Twitter, and blogs for roughly 1.7 trillion minutes each year (Tuten and Solomon, 2014). Users of social media grew by up to 24percent last year, according to analysis. The aforementioned element does not cast any question on how business intersects with people's lives via social media. Social media enhances engagement by making material available to the public and piqueing visitors' interest. Social media platforms are instruments for informing
  • 13. 13 customers. Inside and outside of the workplace, people are disseminating private or public information. Andrew Stephen T. (2016) 1. Consumer Digital Culture - The first theme focuses on understanding how digital culture is shaping the behavior and attitudes of consumers. This includes understanding the impact of digital technologies on consumer trust, loyalty, and engagement. Additionally, it looks at how social media is impacting how people interact with brands, how they perceive the value of products and services, and how they are making decisions. 2. Reactions to Digital Advertising - The second theme looks at the effectiveness of digital advertising, in particular how consumers respond to different types of digital advertising. This includes examining the impact of creative elements, such as visuals and messaging, on consumer behavior and attitudes. 3. Impacts of Online Spaces on Customer Behaviour - The third theme focuses on how online spaces, such as websites, forums, and social networks, are influencing customer behaviors. This includes understanding how different types of content, such as product reviews and testimonials, are impacting customer decision making. 4. Mobile Environments - The fourth theme looks at the impact of mobile environments, such as apps and messaging services, on consumer behavior. This includes examining how the use of mobile technology is influencing the way people interact with brands, how they consume content, and how they make decisions. 5. Understanding Consumer On the other hand, with digital marketing, the budget allocated to each of these channels can be easily quantified. This is because digital marketing is highly trackable and measurable. We can measure the effectiveness of campaigns through detailed analytics and A/B testing, which helps us to determine the ROI of each digital marketing campaign. We can also create targeted campaigns and use behavioural insights to further customise our campaigns. Through our digital efforts, we can easily monitor our customer databases, track their behaviour, and adapt our campaigns to their needs. We can also use data-driven insights to identify opportunities and trends to better engage with our target markets.In conclusion, using digital and social media marketing strategies is the best way to increase sales, lower our marketing costs and remain relevant in the market for the next five years. Digital marketing allows us to track customer behaviour, monitor our competitors, create targeted campaigns and use data insights to better personalise our campaigns. In this way, we can remain competitive and continue to generate revenue in the future.
  • 14. 14 To promote their products, companies are increasingly using influencers to reach a wider audience. Influencers have the ability to garner attention and build a relationship with their followers, thus leading to a positive attitude towards the brand and product (Gaedtke, 2021). They also create an image of trustworthiness and credibility, which encourages people to purchase the product. This is especially effective for luxury brands, where consumers are more likely to trust an influencer than a conventional advertisement. The use of influencers in marketing communication has become increasingly popular, as it allows companies to connect with their target audiences in a more personalized and authentic way. Influencers are seen as more credible than traditional advertising, as they have a direct connection with their followers and can be trusted. Companies can also use influencers to create a dialogue with their audience and build a stronger relationship. Furthermore, influencers can provide a unique perspective on a product or brand, which is seen as more trustworthy than a generic advertisement. In conclusion, influencer marketing is an effective tool for companies to reach their target audiences and promote their products. It allows for a more personalized and authentic approach to marketing communication, and is seen as more credible and trustworthy than traditional advertising. Influencers can also help companies build Impulse purchases can be a form of instant gratification, but they can also put a dent in your budget. Additionally, there is the potential for buyer’s remorse or guilt after making the purchase, which can make the initial feeling of happiness short-lived. Therefore, it is important to weigh the pros and cons when considering an impulse purchase. The use of online retailing platforms and digital marketing strategies can be used to encourage customers to make spontaneous purchases. These strategies include employing persuasive techniques such as discounts, free gifts, and free shipping, as well as creating an appealing website design (visuals, user experience, and web navigation) that draws customers in. The use of social media platforms and influencers can also be used to reach potential customers and encourage them to purchase products spontaneously. Additionally, the use of predictive analytics can help marketers target customers with personalized promotions and offers, thus increasing the likelihood of customers making spontaneous purchases.
  • 15. 15 Research Objective:  The aim is to investigate how digital marketing affects consumer purchasing decisions and determine if consumers are cognizant of the role that digital channels play in influencing their buying behavior.  The objective is to assess the different channels that consumers favor when making purchasing decisions compared to traditional channels.  To analyze the impact of social media on consumer buying behavior Research Methodology: This study primarily focuses on the factors and motivation that impact Role of Digital and Social Media marketing on Consumer Behaviour. o The questionnaire was structured to evaluate the factors discussed in the literature review, with participants being asked to rate their responses on a scale of 1 to 5, with 1 being strongly disagree and 5 being strongly agree. o The participants were queried on their history with online shopping, their attitude toward making impulsive purchases, and their thoughts on the factors that impact their impulse buying habits. o The study findings indicate that most individuals refrain from impulsive buying and prefer conducting research before purchasing a product. Moreover, the study revealed that the majority of the respondents seek a diverse range of options while shopping online. The research further highlights that website quality, trust, ethical values, and situational variables are the main factors affecting consumer behavior. The study employed logistic regression to create a model and predict the outcomes. o The study utilized logistic regression analysis to examine the impact of the independent variable (use of social media or digital marketing) on the dependent variable, which is categorical and binary in nature (consumer's purchasing behavior). o There was not enough variance in the data to determine the relevance of the Discriminant Model. Hence ran a Logistic Regression to understand which variables are able to Establishing the factors that impact Role of Digital and Social Media marketing on Consumer Behaviour.
  • 16. 16  Conducted Secondary research with the help of a Literature review (Reports, Past Studies & Research Papers and articles) to conceptualise the topic. Research Framework: The google form was shared with students and friends across different Business schools, Undergraduate Colleges and Schools; professionals in organisations and colleagues. The sample size was 111. The sampling method used is Convenient Sampling. Data Collection: Primary Data (Survey) Demographic Questions: 1. Age 2. Gender 3. Education Qualification 4. Income per annum 5. Employment status Dependent Variable (Dichotomous Question): On overall, considering everything, the overall impact of social media and Digital Marketing on consumer buying behaviour Independent Variables-  Preference of Social Media Platform 1. Facebook 2. Instagram 3. Youtube 4. Whatsapp 5. Friends and Family often influence my impulse buying behaviour.
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  • 24. 24 Logistic Regression: Ran Logistic regression with the Factors that are included in the discriminant function to understand what is the exact association of these factors with the of impact of social media and digital marketing on consumer behaviour. Divided the data into test data and training data. There are 66 training data. There are 45 Test Data. Training data is used for Model creation and Test data is used for Validation. To run logistic regression, the two categorical variables- ‘1 means = There is impact’ '0 means = There is no impact', that are included in the discriminant analysis has to be loaded into the test and training data. X_train = train_df[['Preference','Social Media Ads','Information about different products','Reviews','Social Media Advertising', 'Popularity','Watch Influencer','Tell my friends','Brand Presence over social media', 'Credibility of Youtube influencer', 'Brand community','Compare products','Directly from brand page','Purchasing time and cost saving','Male']] y_train = train_df[["Impact"]] X_test = test_df[['Preference','Social Media Ads','Information about different products','Reviews','Social Media Advertising', 'Popularity','Watch Influencer','Tell my friends','Brand Presence over social media', 'Credibility of Youtube influencer', 'Brand community','Compare products','Directly from brand page','Purchasing time and cost saving','Male']] y_test = test_df[["Impact"]]
  • 25. 25 Ran Logistic Regression- from sklearn.linear_model import LogisticRegression logreg = LogisticRegression() logreg.fit(X_train,y_train) Accuracy: 0.8888 The Accuracy of the Model is 0.888, which is 88.88%. It can be concluded that the model formed is a good model which can predict with an accuracy of 88.88%. The precision of a confusion matrix serves as an indicator of the accuracy of a classification model. The calculation involves dividing the number of true positives (TP) by the sum of true positives and false positives (FP). The outcome denotes the percentage of predicted positive cases that are indeed positive. A higher precision score denotes a more precise model. “Precision” of the model is 90.24% The recall of a confusion matrix assesses the comprehensiveness of a classification model. To calculate it, the number of true positives (TP) is divided by the sum of true positives and false negatives (FN). The output reflects the percentage of actual positive cases that the model could detect. A higher recall score implies a more precise model. “Recall” of the model is 97.37% The Coefficients of the model are: Intercept -2.885 Male -0.318 Preference -0.109 Social Media Ads 0.013 Information about different products 0.334 Reviews -0.438 Two Way interaction 0.049 Popularity 0.404 Watch Influencer Review before Purchasing online 0.132 Tell my friends 0.017 Brand Presence over social media -0.086 Credibility of Youtube influencer 0.726 Brand community -0.124 Compare products 0.473 Directly from brand page 0.354 Purchasing time and cost saving -0.636
  • 26. 26 Model: Logit= -2.885 – 0.318*(Male) – 0.109*(Preference) + 0.013*(Social Media Ads) + 0.334*(Information about different product) - 0.438*(Reviews) - 0.049*( Two Way interaction) + 0.404*(Popularity) + 0.132*( Watch Influencer Review before Purchasing online) + 0.017*(Tell my friends) - 0.086*( Brand Presence over social media) + 0.726*( Credibility of Youtube influencer) - 0.124* (Brand community) + 0.473*( Compare products) + 0.354*( Directly from brand page) – 0.636*( Purchasing time and cost saving) Odd Ratio:  The odds of impact of social media and digital marketing on consumer behaviour in Male 0.728 times than that of a female customer.  One Unit increase in Preference would decrease the odds of impact of social media and digital marketing on consumer behaviour by 0.896 times.  One Unit increase in Social Media Ads would increase the odds of impact of social media and digital marketing on consumer behaviour by 1.103 times.  One Unit increase in Information about different products would decrease the odds of impact of social media and digital marketing on consumer behaviour by 1.396 times.  One Unit increase in Reviews would increase the odds of impact of social media and digital marketing on consumer behaviour by 0.645 times. Intercept 0.056 Male 0.728 Preference 0.896 Social Media Ads 1.103 Information about different products 1.396 Reviews 0.645 Two Way interaction 1.050 Popularity 1.498 Watch Influencer Review before Purchasing online 1.141 Tell my friends 1.017 Brand Presence over social media 0.918 Credibility of Youtube influencer 2.065 Brand community 0.884 Compare products 1.604 Directly from brand page 1.420 Purchasing time and cost saving 0.529
  • 27. 27  One Unit increase in Two Way Interaction would increase the odds of impact of social media and digital marketing on consumer behaviour by 1.050 times.  One Unit increase in Popularity would decrease the odds of impact of social media and digital marketing on consumer behaviour by 1.498 times.  One Unit increase in Watch Influencer Review before Purchasing online would increase the odds of impact of social media and digital marketing on consumer behaviour by 1.141 times.  One Unit increase in Tell my friends would increase the odds of impact of social media and digital marketing on consumer behaviour by 1.017 times.  One Unit increase in Brand Presence over social media would increase the odds of impact of social media and digital marketing on consumer behaviour by 0.918 times.  One Unit increase in Credibility of Youtube influencer would decrease the odds of impact of social media and digital marketing on consumer behaviour by 2.065 times.  One Unit increase in Brand Community would increase the odds of impact of social media and digital marketing on consumer behaviour by 0.884 times.  One Unit increase in Compare products would decrease the odds of impact of social media and digital marketing on consumer behaviour by 1.604 times.  One Unit increase in Directly from brand page would increase the odds of impact of social media and digital marketing on consumer behaviour by 1.420 times.  One Unit increase in Purchasing time and cost saving would increase the odds of impact of social media and digital marketing on consumer behaviour by 0.529 times.
  • 28. 28 Relation between demographic factors and impact of social media and digital marketing on consumer behaviour: As per the literature review, consumer demographics might influence consumers’ impulsive buying behaviour. There is a need to establish the fact whether there is any association between two variables, that is a demographic variable and the of impact of social media and digital marketing on consumer behaviour. Running a chi-square test between Age-group, education qualification, Gender, Income, employment status & impulsive buying decision to conclude, whether the demographics have any association or not. Chi-Square Test: 1. Age Group- H0: There is no association between age-group and impact of social media and digital marketing on consumer behaviour. H1: There is an association between age-group and impact of social media and digital marketing on consumer behaviour. The p-value (Sig.) is 0.057 which is more than 0.05 significant level (p-value > 0.05). Hence, the null hypothesis is accepted. There is no association between age and the impact of social media and digital marketing on consumer behaviour.
  • 29. 29 2. Education Qualification- H0: There is no association between education qualification and the impact of social media and digital marketing on consumer behaviour. H1: There is an association between education qualification and the impact of social media and digital marketing on consumer behaviour. The p-value (Sig.) is 0.103 which is more than 0.05 significant level (p-value > 0.05). Hence, the null hypothesis is accepted. There is no association between education qualification and the impact of social media and digital marketing on consumer behaviour. 3. Gender- H0: There is no association between gender and the impact of social media and digital marketing on consumer behaviour. H1: There is an association between gender and the impact of social media and digital marketing on consumer behaviour. The p-value (Sig.) is 0.390 which is more than 0.05 significant level (p-value > 0.05). Hence, the null hypothesis is accepted. There is no association between gender and the the impact of social media and digital marketing on consumer behaviour.
  • 30. 30 4. Income- H0: There is no association between income and impact of social media and digital marketing on consumer behaviour. H1: There is an association between income and impact of social media and digital marketing on consumer behaviour. The p-value (Sig.) is 0.244 which is more than 0.05 significant level (p-value > 0.05). Hence, the null hypothesis is accepted. There is no association between income and impact of social media and digital marketing on consumer behaviour. 5. Employment Status- H0: There is no association between Employment status and impact of social media and digital marketing on consumer behaviour. H1: There is an association between employment status and impact of social media and digital marketing on consumer behaviour. The p-value (Sig.) is 0.856 which is more than 0.05 significant level (p-value > 0.05). Hence, the null hypothesis is accepted. There is no association between occupation and the impact of social media and digital marketing on consumer behaviour.
  • 31. 31 Findings and Managerial Implications 1. The impact of social media and digital marketing on consumer behaviour, depends on the mood, emotional and product stimuli, and the trend in the market. Hence there is no specific product category that is preferred by the consumers. 2. Out of 111 respondents, 91 that is the majority of respondents, think that online shopping portals and platforms have highly influenced their impact of social media and digital marketing on consumer behaviour. 3. The findings of the study also indicate that Referral and Trust are the most significant factors for customer buying behaviour in the online shopping. 4. This study model is statistically significant, but the factors cannot fully explain the dependent variable. 5. As per the study Age group, Education Qualification, Income, Employment Status and Gender has no association with impulsive buying decision. Emotional stimuli have more association with impulsive purchasing, hence age-group, education, Employment Status, Gender and income have no association. 6. The factors that are formed are correctly classified. The model is statistically significant and is good in terms of prediction accuracy. 7. With the help of crosstabs, I could figure out the preferred social media platforms across different age-groups and people across different backgrounds.
  • 32. 32 Limitation 1. As Data is limited to 111 Responses. 2. The majority of the respondents are students in a specific age group, income group and education qualification. There is a possibility that due to this unequal distribution, the variance in the discriminant data is not being explained properly. 3. The 4 factors that has significant impact on the customer buying behaviour suggests that social media has a major impact on consumer buying decisions. 4. The brands should focus on these 4 factors when they are looking to market their products on social media as it impacts the consumers in the pre-purchase stage. 5. The age-group 18-23 and 24-28 are mostly impacted by social media platforms Instagram and Facebook when they purchase online so the brands should focus on the social media handles and work on the 4 factors mentioned in the study if their target segment falls under this age-group
  • 33. 33 Conclusion From the studies conducted, it can be concluded that digital and social media marketing have a major impact on consumer behaviour. Consumers are becoming increasingly exposed to digital and media marketing through various channels such as online search, online advertising, and social media platforms. This increased exposure has led to an increased level of engagement with these marketing activities, resulting in a greater level of purchase decisions being influenced by digital and social media marketing. Furthermore, the use of digital and social media marketing has also been found to have a positive effect on consumer loyalty and advocacy. Overall, the findings from this study suggest that digital and social media marketing are a powerful tool for influencing consumer behaviour. For businesses, this means that they should be leveraging digital and social media marketing to reach their target audiences, increase brand awareness, and ultimately increase sales. Furthermore, businesses should be aware of the potential implications of digital and social media marketing on consumer behaviour, and should ensure that their strategies are in line with the goals of their customers.
  • 34. 34 Annexure 1.Gender* Male Female 2. Age Group* Less than 18 18-23 24-28 29-35 Above 35 3. Employment Status* Student Business Service Professional 4. Income Level* Not Applicable Less than 10000 11000 - 30000 31000-50000 Above 50000 5. Education* High School Graduation Post-Graduation Phd others 6. Preference of Social Media Platform* Facebook Instagram Youtube Whatsapp Snapchat 7. Social media ads are more informative as compared to traditional media. * Strongly disagree Disagree Neutral Agree Strongly agree
  • 35. 35 8. I get information about different products through social media i.e., Facebook, Twitter, YouTube, blogs etc. * Strongly disagree Disagree Neutral Agree Strongly agree 9. The reviews from my friends and family over social media helps me in purchasing that particular product online. * Strongly disagree Disagree Neutral Agree Strongly agree 10. Social media advertising provides two-way interactions between the buyer and seller. * Strongly disagree Disagree Neutral Agree Strongly agree 11. The popularity of the brand over social media helps me in purchasing products from that particular brand. * Strongly disagree Disagree Neutral Agree Strongly agree 12. I prefer to watch the reviews of influencers before purchasing products online. * Strongly disagree Disagree Neutral Agree Strongly agree 13. I usually tell my friends about the advertisement of social media and the product then share it. *
  • 36. 36 Strongly disagree Disagree Neutral Agree Strongly agree 14. The brands presence over social media helps in providing information about the brand and their product range or new product launches. * Strongly disagree Disagree Neutral Agree Strongly agree 15. The credibility of YouTube influencers, bloggers influences my buying decision * Strongly disagree Disagree Neutral Agree Strongly agree 16. Social media allows to interact with the brand community to know more about the products of the brand. * Strongly disagree Disagree Neutral Agree Strongly agree 17. I like to compare products from different brands over social media. * Strongly disagree Disagree Neutral Agree Strongly agree 18. I prefer to purchase directly from the Digital media page of the brand. * Strongly disagree Disagree Neutral
  • 37. 37 Agree Strongly agree 19. Digital media reduces the purchasing time as well as the cost while purchasing products online. * Strongly disagree Disagree Neutral Agree Strongly agree 20. On overall, considering everything, the overall impact of social media and Digital Marketing on consumer buying behaviour * Yes No
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