Beruflich Dokumente
Kultur Dokumente
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Group A
Firstly, we would like to express our sincere gratitude towards Kathmandu University
We would also like to thank Mr. Rupesh Krishna Shrestha, Course Facilitator for
Consumer Behavior for the proper guidance, constructive advices, suggestions and valuable time
We are also thankful to all our teachers and staffs of KUSOM including librarians as
well as lab personnel who has helped directly or indirectly in giving proper shape to our research
study.
We are also indebted towards all our respondents for providing their valuable time,
support and suggestion which has been the great resources for completing this report.
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Contents
1.0 Introduction 5
1.1 Objectives of the Study 7
1.2 Rational of the study 7
1.3 Limitations of the study 8
2.0 Literature Review 9
2.1 Conceptual Model Development 16
3.1 Methodology 18
3.1.1 Data Collection Technique 18
3.1.2 Sampling Design 18
3.1.3 Research Design 19
4.1 Demographic Profiling 21
4.2 Media Habits 23
4.3 Findings 25
Age and Purchase Intention: 25
References 33
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4
List of Figures
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I
Introduction
1.0 Introduction
Human society has found the most interactive and engaging technology based digital platform in
the 21st century that each member of the society involved can add value with her/his
views/update and alteration-that is 'social media'. People are connected to this cost-free platform
24/7 with exponential networking facility that marketers are always keen to keep eye on. So the
marketers have found this social media as the most promising platform to connect with and
attract target consumers, added with the value of voluntary word of mouth, with their marketing
stint.
As we scroll through various social media like Facebook, Twitter, Instagram, Snapchat etc we
get exposed to various advertisements of the products. Before jumping into the proposal, let's
Social Media
" Social media is todays most transparent, engaging and interactive form of public relations. It
combines the true grit of real time content with the beauty of authentic peer-to-peer
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Social Media Marketing
Social media marketing (SMM) refers to techniques that target social networks and applications
to spread brand awareness or promote particular products. Social media marketing campaigns
contests
Social media marketing is perceived as a more targeted type of advertising and is therefore
As per the statistics, the use of social media is increasing with facebook being the most
dominating one (Chaffey, 2016). Catching up this trend, marketing in social media is also
increasing which can be visible in the social media that we use. Various brands are flooded in the
social networking sites. But will it have any effect on buying intention of the consumers once
they are exposed to advertisements in such platform? Will they develop a positive attitude
towards a product or a brand? Will it have a different impact on different age groups?
One study found that online adults aged 18-34 are most likely follow a brand via social
networking (95%) (LaMontagne, 2015). The other study says that 20% of Facebook posts
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generate an emotional response while no ads did (Smith, 2016). This shows the strength of social
media marketing.
Social Media Marketing touches various demographics of the consumers. This research will be
focusing on attitude of consumers belonging to various age brackets towards the products
The finding in the research paper The Impact of Social Media Marketing Medium toward
Purchase Intention and Brand Loyalty among Generation Y (Balakrishnan, Dahnil, & Yi, 2014)
indicate to marketing managers that social media marketing medium has become an important
marketing tool to reach emerging younger generation consumers. According to Kim and kou
(2011), social media can have great effect on the popularity of commercial brand.
consumers
Social media research and insight is a powerful tool for companies in this day and age, and in
todays context, its important to understand why. Social Media Examiner found that using social
media for marketplace insight ranked as the third most valuable benefit of social media, with 72
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percent of those spending 11 hours per week using social media for research reported seeing
benefits. Thats a huge number, and with 78 percent of companies planning to further integrate
or begin integrating social media data into marketing campaigns, more companies than ever are
To marketers, social media marketing is a powerful platform that must be taken advantage of
while its still in the spotlight. According to Hubspot, 92% of marketers in 2014 claimed that
social media marketing was important for their business, with 80% indicating their efforts
increased traffic to their websites. And according to Social Media Examiner, 97% of marketers
are currently participating in social mediabut 85% of participants arent sure what social
This demonstrates a huge potential for social media marketing to increase sales, but a lack of
understanding on how to achieve those results. Social media develops 18% of the purchase
intention on consumers (Insights in Marketing). Through this study, we wanted to verify the
purchase intention that social media marketing formed in Nepal. The findings from this study
would be beneficial for the marketers who are thinking of promoting their products through
social media. It would be beneficial for them for segmenting, targeting and positioning.
The sample size may not be representative or large enough to generalize the purchase
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intention of social media users. The study could have been more meaningful had we
As the study was carried out within a short duration, it might not have held the
meaningful implication for the concerned parties in future. The efforts, resources and
expertise could have been better utilized with more time for this study.
The respondents in this research are more homogenous group, therefore the findings
II
Literature Review and Conceptual Framework
Having reviewed various literatures regarding social media, attitudes towards marketing in this
platform and consumer purchase intentions, it has helped to clarify the definitions and relevant
terms. It also helps to understand different views of researchers on these topics and themes, more
specific, the ways they approach and solve the problems. The following are some conclusions
Kaplan and Haenlein (2010, 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, 294) cite OReillys
(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
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website to meet the requirements as a social network website: the site must contain user profiles,
content, a method that permits users to connect with each other and post comments on each
others 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,
"Social media marketing is the use of social medial platforms and websites to promote a product
or service. Most of these social media platforms have their own build-in data analytics tools,
which enable companies to track the progress, success, and engagement of ad campaigns.
Companies address a range of stakeholders through social media marketing including current and
potential customers, current and potential employees, journalists, bloggers, and the general
public. On a strategic level, social media marketing includes the management of the
implementation of a marketing campaign, governance, setting the scope (e.g. more active or
passive use) and the establishment of a firm's desired social media "culture" and "tone". To use
social media effectively, firms should learn to allow customers and Internet users to post
user-generated content (e.g., online comments, product reviews, etc.), also known as "earned
media", rather than use marketer-prepared advertising copy. While social media marketing is
government organizations are engaging in social media marketing of their programs of services."
Wikipedia
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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, 30).
Consumer Attitudes/Motives
It is vital for retailers and marketers to be aware of the factors that affect consumer attitudes and
motives because consumers are increasingly creating content about brands, something previously
controlled solely by companies (Heinonen 2011). As a result, current research has examined
what aspects of social media sites affect consumer attitudes and motives. Chu (2011) examined
the link between Facebook brand related group participation, advertising responses, and the
Facebook groups. The study determined that users who are members of groups on Facebook are
more likely to disclose their personal data than nonmembers are. Chu (2011) explains group
participation and engagement with online ads requires a higher level of personal information
because users openly reveal their connections with Facebook groups and promote brands or
products when they pass on ads to their friends. Facebook groups provide channels that
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consumers deem useful when seeking self-status in a product category, as does passing on viral
Chu (2011) also found that users who are Facebook group members maintain a more favorable
attitude toward social media and advertising. Users who have more positive attitudes toward
advertising are more likely to join a brand or a retailers Facebook group to receive promotional
messages. Based on this result, Chu (2011) suggests that a link exists between consumers use of
and engagement in group applications on a social media sites. The relationship between
consumers use of and engagement with group applications influences the rate and effectiveness
Facebooks college-aged users have the most favorable attitudes toward social media advertising
and are the largest growing demographic, which suggests that social media sites are a potentially
rich platform for online advertising campaigns, especially for companies with a younger target
market.
Cox (2010) also investigated the correlation between age and attitude and found that social
network user attitude toward online advertising formats (i.e. blogs, video, and brand channel or
page) differed to some extent across age groups. She explains that users who fall in the 18-28 age
brackets had strong positive attitudes towards blogs, video, and brand channel ad formats. This
was because users found these ad formats to be eye catching, informative, and amusing. The
35-54 age groups preferred ad formats on video and brand channels because they found them to
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be more eye catching, informative, and had better placement within the online page layout.
Overall, online advertising formats with positive attributes are welcomed by users; however, ads
that are intrusive or interfere with online social networking activities, such as pop up,
expandable, or floating formatted ads were disliked by network users (Cox 2010).
Keeping track of the behavior is extremely important for both advertisers and the websites
themselves, as they obviously influence the consumers attention (Cheng, Blackson, Wang &
Cho, 2009). According to a study, only 22% of consumers questioned had a positive attitude
towards digital advertising, and 8% of users studied had left a certain social network because of
The principle of advertising on social media is to include the potential customer at every level of
the marketing strategy: his role is no longer only passive (Parsons, 2013) and the challenge is to
get him involved and to establish a lasting connection by making him participate indirectly in the
marketing operation. The customer can now be an active player in the process, and the
advantages of this are numerous and mutual (Rodgers & Chen, 2002). Such customer
participation is less expensive than common advertising as it enables both direct links and
communication between the targeted public and the organization, allowing a customized
promotion. Long-term relationships are built through interaction, which is enabled by the tools of
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social networks - the comments, the likes and the different features offered by the platforms.
One of the purposes of this kind of marketing is to participate actively but not too formally, in
peoples lives, so that in turn users are involved in the creation of marketing content (Chu, 2011).
Companies can participate on the platforms in different ways: by creating their own page or by
interaction with consumers, just like these latter do with their friends and family (Rodgers &
Thorson, 2000).
Viral Advertising
Viral advertising has become a way in which retailers are marketing and providing more
information on their brands or products. A viral approach to online advertising has a major
al., 2008). This can be attributed to the fact that viral communication affords the marketer a
greater degree of creative license through a message delivery medium that is more intimate and
personalized, thereby increasing the likelihood of reaching hard to get audience members
(Bampo et al. 2008, 274). Viral advertising is unpaid peer to peer communication of
provocative content originating from an identified sponsor using the Internet to persuade or
influence an audience to pass along the content to others (Porter and Golan as cited by Chu
2011, 31). Viral advertising differs from UGC because an identified sponsor is associated with
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the ad, thus signifying the origin of the ad and who created it. Numerous studies of viral
advertising have found that humor, sexuality, stealth, and positive experiences are relevant
Kelly et al. (2010) determined that three factors influencing ad avoidance online: interruption of
task, perceived clutter on the Internet sites, and negative past experiences with Internet
advertising. Research shows the believability of trustworthiness of the medium influences how
the consumer views the credibility of the information offered (Moore and Rodgers as cited in
Kelly et al. 2010, 17). Based on this study, the majority of ads featured on social networking
sites are not relevant to consumers, and they only notice ads when it annoys or entertains them. It
has become clear that advertisements that provide entertainment are usually liked and accepted
While purchase intention referred to the subjective judgment by the consumers that is reflected
after general evaluation to buy products or services (Hsu, 1987; Dodds et al., 1991; Blackwell et
al., 2001 and Shao et al, 2004). There is several meaning from the statement, which is: (1)
consumer willingness to consider buying, (2) buying intention in the future, (3) decision
repurchase. Other than that, purchase intentions refer to the degree of perceptual conviction of a
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Word of Mouth
Word of Mouth is the powerful tool to influence people and also can influence their buying
behavior. This can be proved according to (Richins & Root-Shaffer, 1998) stated that Word of
Mouth has been shown to play major role for customers buying decisions. According to Hennig
Thurau et al. (2004, 39) define online Word of Mouth as being: Any positive or negative
statement made by potential, actual, or former customers about the product or company which is
made available to a multitude of people and institutions via the internet. While as consumers are
increasingly using the Internet and social media tools such as Facebook, Twitter, Blog, Flickr,
and so on. According to Cheung et al. (2008) more and more consumers use Web 2.0 tools such
as online discussion forums, consumer review sites, weblogs, and social network sites to
exchange product information. Online Word of Mouth can provide the opportunity to consumers
to read other consumers consumption opinions and experiences as well as write contributions by
themselves.
Forum are online communities formed around a specific interest (Pitta and Fowler, 2005; 266)
and are usually divided into specific topic areas. For the product information, they can post their
opinion whether they satisfied after they consume the product. Within each area, users can start
forum threads about different topics, and these threads can continues for years, allowing
newcomers to read the previous communication within the forum and learn from wider
Online advertisement works very quickly given the fact that the day that one gets started is the
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same day that results manifest. There is basically neither waiting period nor long startup process.
Once an entrepreneur is ready to get started, he/she can very easily launch a successful
Loyalty is a core dimension of brand equity. Aaker (1991, p. 39) defines brand loyalty as the
attachment that a customer has to a brand. Grembler and Brown (1996) describe different levels
of loyalty. Behavioral loyalty is linked to consumer behavior in the marketplace that can be
indicated by number of repeated purchases (Keller 1998) or commitment to rebuy the brand as a
primary choice (Oliver 1997, 1999). Cognitive loyalty which means that a brand comes up first
in a consumers mind, when the need to make a purchase decision arises, that is the consumers
first choice.
While purchase intention referred to the subjective judgment by the consumers that is reflected
after general evaluation to buy products or services (Hsu, 1987; Dodds et al., 1991; Blackwell et
al., 2001 and Shao et al, 2004). There is several meaning from the statement, which is: (1)
consumer willingness to consider buying, (2) buying intention in the future, (3) decision
repurchase. Other than that, purchase intentions refer to the degree of perceptual conviction of a
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engagement hours in social media and attitude towards social media with the purchase intention.
which in turn developed positive attitude towards social media marketing. Positive attitude and
purchase intention have direct and positive relationship. Similarly one research suggested that
long standing user engagement in Facebook applications, incentives and interaction, consumers
tend to establish more favorable brand attitudes and greater purchase intentions pertaining to
brand advertising on this platform (Rau et al., 2008). Ha and Janda (2014) postulated that
positive attitudes had an influence on online behavioral intentions. Similarly, another paper
suggested that the effects of product placement conducts (product prominence and presentation)
in social media are similar to the effects of product placement in other media (Liu, 2015).
Placement of advertisement helps in formation of attitude towards a product. Thus with these
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Figure 1 Conceptual Model
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III
Research Design
3.1 Methodology
This section describes the methodology of this research through the model operational process.
This process will be supported by the data collection technique, the sample selection and by an
understanding of the respondent group characteristics that are considered for future research on
other groups of respondents. The data analysis will illustrate measure and specify the conceptual
students, professionals, household). Participants involved by means of set of questions. All the
respondents are of various sectors and ensure valid responses to questions about their perspective
The questionnaires were distributed to the respondents through email and through social media.
Questions related to consumer demographics, media habits, attitude towards social media
marketing and purchase intention were asked. The questions were formed after reviewing the
literature.
Thus target population are all the users of social media sites
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Sample frame: The target populations are the ones who have account on social media sites and
Sample design: Non probability sampling technique was used for this research as only the
contacts in our list were requested to fill up the form. Thus, convenience sampling was done by
matter and our motive is to describe the several characteristics of the variables involved. So the
Study setting: The quantitative approach was conducted in a natural setting. The respondents
Unit of analysis: Unit of analysis is individual. Respondents were asked to fill up the form once
Type of investigation: Co-relational investigation is carried out. This study intends to identify
Time horizon: Cross-sectional time horizon will be used for this study as it will be conducted
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Instrumentation
Based on the literature reviews, a standard questionnaire were developed for the purpose
acquiring the relevant data for analysis. This questionnaire was used as an instrument of
investigation in order to get a clear picture of the purchase intention that a social media
marketing created.
Analysis of data
The data collected from questionnaire are analyzed using quantitative technique through
Statistical Product and Service Solution (SPSS) software. Statistical analysis such as correlation
analysis, regression analysis, standard deviation and mean were carried out. The results were
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IV
Survey Outcomes
The responses were sent through email and through social media to fill up the form. Total 120
responses were collected and the personal information related to age, gender and income were
collected.
of them belonged to 20-29 years, 39.2% belonged to 30-39 Years, 3.3% belonged to below 20
years and 1.7% of them belonged to 40-49 Years of age group. No other responses were received
from age group of more than 50 years of age, from which it can be implied that the age group
belonging to the age group more than 50 years of age are not so active in social media.
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Gender: Out of 120 respondents 64.2% were female and 35.8% of them were male respondents
Figure 3 Gender
Income Group: Most of the respondents belonged to the income group below Rs 20,000 of
group. 25% of the respondents belonged to the income bracket 41,000 - 80,000 while 23% of the
respondents belonged to 21,000 - 40,000. 4.2% of the respondents belonged to income group
81,000 to 1,00,000 while 5% of the respondents belonged to income bracket of Rs. more than
1,00,000.
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4.2 Media Habits
Account on Social Media: Majority of the respondents used Facebook (98.3%), followed by
Instagram(51.7%) and Twitter (46.7%). The respondents were exposed to the advertisements of
the products and in these social media most of the time. Other social media that the respondents
used were LinkedIn, Pinterest, Snap Chat and few other social networking sites.
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Figure 4 Social Media Usage
73% of the respondents who had account on various social media were interested to follow the
The respondents used social media mostly for Networking. Other than networking, they were
also interested in knowing the market trends on goods and services (54.2%) and viewing user
reviews on products and services (47.5%). Similarly, some of them used social media for
purchasing goods and services (36.7%) when it came to goods and services in social media. The
respondents seemed quite interested in learning about products and services through social media
according to this survey when they were asked why they were interested in using social media.
However the major reasons for using social media was entertainment factor in there followed by
networking.
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Most of the respondents (35%) spent 1-2 hours of their time per day in social media. There were
also respondents who spent less than an hour of their time in a day in social media (17.8%). The
time spent by the respondents in social media ranged from less than an hour to more than 5 hours
as depicted by the graph below. The observation of social media engagement in terms of hours
also substantiates the Rational of the Study on this topic where people in this part of the world
4.3 Findings
Age and Purchase Intention:
Table 1 Age and Purchase Intention
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5
Below 20 3.08
Years
As shown in the table, Social media marketing influenced the purchase intention of the
customers who belonged to the age group 30-39 Years most. It influenced the people belonging
to other age groups as well, but it least influenced the people who belonged to the age group
40-49. It must be because some of them in this age group do not belong to the Generation Y who
were exposed to digital and electronic technology. From this it can be inferred that, the marketers
in social media should focus on the people belonging to Generation Y (1980s and 1990s) or
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Gender and Purchase Intention
r 5
Female 3.40
Male 3.19
This survey findings showed that social media marketing formed purchase intention more on
females than males. It's not that males were not at all influenced after getting exposed to social
media marketing but females were more prone to form an intention to make a purchase after
Marketers should therefore place more feminine products and target female customers in order to
influence them to reach a purchase decision. Since lesser male formed purchase intention
through social media marketing, marketing proportionally more products for females can boost
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Table 3 Income and Purchase Intention
21,000-40,000 3.56
41,000-80,000 3.17
1,00,000
As per the findings from this survey, social media marketing developed the purchase intention to
all income groups as each of them stand above the average. Social media marketing seems to be
very beneficial for the marketers as it influenced all income groups, be it the people belonging to
low income group or high income group. Though this finding has not shown the direct
relationship between income and purchase intention, it certainly shows that it makes an impact to
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Engagement in Social Media and Purchase Intention
Media 5
The mean value of purchase intention with respect to the time spent in social media shows that
purchase intention is formed most of the time once they use the social media and are exposed to
advertisements in social media. Marketers need to make the adverts in social media more
engaging so that purchase intention is formed more. The survey showed that 3-4 hours of
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engagement in social media develops purchase intention the most. Therefore marketers should
focus on promoting their advertisements at least once a day in social media as all of the
respondents in this survey used social media every day. The findings in this research paper do
not match with the finding in another paper which says purchase intention increases with the
Advertisement Mean
Informative 4.29
Amusing 3.59
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Catching e g Placement
Intention Correlation
As per this survey, it suggests that when the advertisement in social media is informative, it
develops the purchase intention the most. It must be because, people do not get to touch and feel
the product or service. Most of the time they can't place a query and get an instant reply like
while making queries face to face. Therefore when customers in social media are provided with
enough information about the product or service, their intention for purchasing a product is
developed. All the variables of visual appeals in social media marketing are positively correlated
with purchase intention. Therefore Marketers should give utmost care while making any
advertisement in social media visually appealing so that it forms the purchase intention. Similar
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Table 7 Attitude and Purchase Intention
Attitud
Intention Correlation
N 120
Attitude towards social media marketing and purchase intention are positively correlated and
significant relationship between these two. This means, when a customer views the marketing
activities positively on social media, he is most likely to form a purchase intention for the
product. Similar finding was made in another study as well (Rau et al., 2008).
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Conclusion and Recommendation
The research study revealed so many insights related to marketing and how marketing
professionals make best use of them. The marketing manager should first know who their target
customers are and whether that group falls in the category of people who use social media
extensively. If the target customer belongs to an age of 30-39, then the company should focus
social media promotion that will influence the purchase intention of the customers.
As per research findings, the male products being promoted through social media is able to
appeal the purchase decision. So the company whose product line is male products should invest
their time and effort in social media promotion as it is valuable enough. Similarly the marketing
exceedingly promote their items by advertising in social networking sites as the females are more
The income of customers didnt make that much of difference, so being a marketing manager,
social media promotion targeting any income level customer will be worthy. Social media
promotion without customer engagement is not beneficial at all so ads that can increase customer
engagement and make the customers be repetitive in watching those promotional items so that it
will ultimately influence purchase decision. So the promotional strategy should be made in such
a way that the ads are appealing, engaging and compelling a customer to be attracted towards the
product.
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While making promotional strategy for a product or service, a marketing manager should focus
on making promotional items informative as well as people seek for information while they are
surfing the Social Medias. The first thing that strikes in their minds while surfing these Medias is
Appealing Information attached with the product / service. This informational content will help
to get the initial engagement of the customer and now the content has to be really appealing so
In a nutshell, using social media for the promotion is commendable enough if a marketing
manager exactly knows his/her customer in terms of they using social media, make the content
informative and appealing, increase the customer engagement and ultimately influence the
purchase decision.
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References
https://www.techopedia.com/definition/5396/social-media-marketing-smm
Liu, S.-H. (2015). An exploratory study of product placement in social media. Emerald Insight .
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