APPLICATION OF CONSUMER BEHAVIOR

CONSUMER BEHAVIOR

by
Dafa Munif Ramadhan (1401180599)
Verrel pramagusta (1401184598)
Whalid Ghozi (1401182611)

INTERNATIONAL ICT BUSINESS

ECONOMIC AND BUSINESS FACULTY
TELKOM UNIVERSITY BANDUNG
2019
Table of Contents

COMPANY PROFILE.........................................................................................2

CHAPTER 1.........................................................................................................3

CHAPTER 2.........................................................................................................5

CHAPTER 3.......................................................................................................13

References..........................................................................................................14
PREFACE

By mentioning the name of the almighty Allah, the merciful and the
compassionate. We have done this to the best of our ability and therefore received
all kinds of criticism and suggestions from our readers we hope that this paper on
social media platform facebook

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COMPANY PROFILE
Facebook (FB) is an American online social media and social networking
service based in Menlo Park, California and a flagship service of the namesake
company Facebook, Inc. It was founded by Mark Zuckerberg, along with fellow
Harvard College students and roommates Eduardo Saverin, Andrew McCollum,
Dustin Moskovitz and Chris Hughes.
The founders initially limited the website's membership to Harvard
students and subsequently Columbia, Stanford, and Yale students. Membership
was eventually expanded to the remaining Ivy League schools, MIT, and higher
education institutions in the Boston area, then various other universities, and lastly
high school students. Since 2006, anyone who claims to be at least 13 years old
has been allowed to become a registered user of Facebook, though this may vary
depending on local laws. The name comes from the face book directories often
given to American university students.
The Facebook service can be accessed from devices with Internet
connectivity, such as personal computers, tablets and smartphones. After
registering, users can create a customized profile revealing information about
themselves. They can post text, photos and multimedia which is shared with any
other users that have agreed to be their "friend", or, with a different privacy
setting, with any reader. Users can also use various embedded apps, join common-
interest groups, buy and sell items or services on Marketplace, and receive
notifications of their Facebook friends' activities and activities of Facebook pages
they follow. Facebook claimed that it had more than 2.3 billion monthly active
users as of December 2018. However, it faces a big problem of fake accounts. It
caught 3 billion fake accounts in the last quarter of 2018 and the first quarter of
2019. Many critics questioned whether Facebook knows how many actual users it
has.
It receives prominent media coverage, including many controversies.
These often involve user privacy (as with the Cambridge Analytica data scandal),
political manipulation (as with the 2016 U.S. elections), psychological effects
such as addiction and low self-esteem, and content that some users find
objectionable, including fake news, conspiracy theories, and copyright
infringement.Commentators have accused Facebook of helping to spread false
information and fake news. In 2017, Facebook partnered with fact checkers from
the Poynter Institute's International Fact-Checking Network to identify and mark
false content, though most ads from political candidates are exempt from this
program. Critics of the program accuse Facebook of not doing enough to

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CHAPTER 1

2.1 Marketing Strategy

2.1.1 Fact

A marketing strategy refers to a business's overall game

plan for reaching prospective consumers and turning them into
customers of the products or services the business provides. A
marketing strategy contains the company’s value proposition, key
brand messaging, data on target customer demographics, and other
high-level elements.
Facebook marketing refers to creating—and actively using—a
Facebook page as a communications channel to maintain contact
with and attract customers. Facebook actively provides for this,
allowing users to create individual profiles or business pages for
companies, organizations, or any group attempting to develop a fan
base for a product, service, or brand.

2.1.2 Problem

More than 267 million Facebook users’ IDs, phone

numbers, and names were exposed to an online database that
could potentially be used for spam and phishing campaigns.

Security researcher Bob Diachenko uncovered the

database, according to Comparitech. The database was first

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indexed on December 4 2018, but as of today, December 19, it
is unavailable. Comparitech reports that before the site was
taken down, the database was found on a hacker forum as a
downloadable file.

Most of the Facebook users that were affected by this

leak are located in the U.S., and the data included people’s
Facebook IDs, phone numbers, and their full names.

Diachenko told Comparitech that the leaked data was

most likely a result of illegal scraping or a hole in Facebook’s
API. Scraping is against Facebook’s policies but can be easily
done, especially if users have public profile settings.

2.1.3 Solution

Because of this, Facebook users are advised to set their

privacy settings to “Friends” and set the “Do you want search
engines outside of Facebook to link to your profile?” setting to
“No.” Diachenko also said to be wary of suspicious, unsolicited
text messages.

Digital Trends reached out to Facebook to comment on

the leaked data and what they have done in response, and we’ll
update this story once we hear back.

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 It is important to note that frequently changing your
password and using unique passwords for different platforms
are essential for online privacy and security. It’s no secret that
we are bad at password management, but having better
password habits can be a defense against data leaks.

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CHAPTER 2
2.1 Informed Individuals
2.1.1 Fact
Facebook ads are one of the trendiest online advertising tools because of
their wide reach and relatively low cost. However, right when people believe they
have figured it out, Facebook is going to surprise them with something they didn’t
know and that might change their strategic approach.

1. Facebook bids are extremely sensitive to seasonality.

The whole Facebook algorithm is built on a bidding system that
determines a price of an impression based on multiple variable factors. The
amount of accounts bidding on a specific target is one of the factors that
influences the price the most. The more people bid on a specific target, the more
expensive an impression will be. This is why Christmas, Black Friday and other
busy days usually have a higher cost per click.

2. Facebook offers a click to chat ad option. 

This is not something new, but it certainly is one of the least used
functions on Facebook. Click to chat campaigns can be great for customer service,
and they can be set up using the click to website campaign type. Click to chat
campaigns work very well with users who have already visited a website because
they are familiar with a product or service and might have questions before
committing to a purchase.

3. Facebook placements need different ad strategies.

Facebook currently offers an ad platform that encourages you to create ad
sets that advertise across multiple devices automatically. However, different
devices have different ad requirements and customer behaviors. I recommend you
breakdown your campaigns and ad set by device to maximize performance.
 

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4. The amount of text in the image influences delivery.
The more text you have in an image, the lower your delivery will be.
Facebook prefers posts with images with little or no text. This will be rewarded
with a higher distribution and a lower cost per impression. Facebook is currently
classifying the image text ratio as ok, low, medium and high, which are
explanatory units of measure.
5. Refreshing ad creatives is extremely important.
Most Facebook campaign types don’t give advertisers control over the
frequency of ad delivery to the same user. This can easily create some discomfort
in potential customers and drive them away from a potential purchase. Facebook
advertisers need to change the content and creative of the ads quite often to avoid
this issue.

6. Audience insights are a great source of targeting methods.

Using audience insights with conversion data can be a great source of
information for any campaign. It provides additional ways to target users based on
their online behaviors, purchase habits, housing situation, income and much more.
Finding additional ways to communicate to targeted users will likely help expand
the reach of a campaign and generate better performance.

7. Facebook has a pre-selected similar reach targeting option.

This option allows Facebook to show ads to audiences that are similar to
the ones that you have selected and that are likely to generate extra conversions at
a lower CPA. This option helps businesses expand their overall reach and
visibility. This function works similarly to lookalike targeting, but it differs
because it is based on data that comes from Facebook and not from the ad account
manager.

8. Facebook allows you to limit the exposure on the audience network.

Many advertisers consider the audience network not a great ad placement
because it doesn’t generate quality traffic. Facebook understands these concerns

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and developed two options to solve this issue. The first issue is to exclude specific
website categories from displaying ads such as dating and gambling. The second
option is to proactively upload a list of websites to exclude. This is going to boost
performance by limiting the amount of clicks from placements that will never turn
out to be a conversion.

9. Video ads don’t generate a great direct response.

If the goal of a company is to generate most of its business through video
ads, Facebook is not the way to go. Video ads are great to communicate a
message, but they aren’t necessarily the best option when it comes to website
clicks. Videos are so engaging that the cost per impression needed to generate a
click to the site will boost due to people taking other social action on the post,
such as commenting and liking it.

10. The same bid won’t work forever.

Considering how Facebook bids are sensitive to changes in the
marketplace, one strategy will not always be effective. Something that was
working perfectly today might become unprofitable in a few days. This means
Facebook bids require much more maintenance and constant tune ups.

2.1.2 Problem
Another issue that might be affecting the success of your ad is whether
your bid is too low. Now if the word ‘bid’ instantly brings up images of an
auction house, you’re right on the money. Whenever you send your campaign out
into the great advertising beyond, your ads are competing against thousands of
others, at the same time, in what’s more or less a giant digital auction.
Interestingly enough when it comes to picking the winner of these
“auctions,” Facebook doesn’t always look at the price. The 3 major things that
factor into Facebook’s decision are:

 Bid price – The price you’re willing to pay for the desired action.

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 Estimated Action Rates – How likely your audience is to take the above
action.
 Relevance and Quality – How interesting your ads are to your audience,
and the quality of those ads (which is determined by the amount of
negative/positive feedback)
Based on these three factors, Facebook calculates a “total value” and this total
value is what is used to determine whose ads are shown and whose are not.
Naturally, if you want to achieve the highest value possible, your goal for
every campaign should be to maximize all three factors. Later on, we’ll discuss a
little bit more about Estimated Action Rates and Relevance and Quality, but for
now, let’s focus on the bid portion of this equation.
When purchasing an ad, Facebook allows you to choose what actions you
pay for (link clicks, etc..) as well as how much you want to pay for them. To
determine how much you want to pay, you have two options: Lowest cost or
lowest cost with bid cap. By choosing “Lowest cost” bidding, you’re allowing
Facebook to choose the best price for your selected action and bid
competitively. For 90% of advertisers, this is a great option as it ensures that your
bid price will never be set too low (and under deliver).
Adding a bid cap, on the other hand, is a different case. When selecting a
bid cap, you’re the one telling Facebook what you’re willing to pay for your
action, which is accomplished by designating your average or maximum bid.
Facebook even mentions that you will have trouble with delivery if your bid is too
low.

2.1.3 Solution
When bidding here, it is crucial to ensure that you are bidding an
appropriate amount for your action. Setting a bid that’s too low will nearly
guarantee delivery problems, and chances are your ads will be shown very little or
not at all. In some cases, Facebook will display a message inside Ads Manager
alerting you to this problem:

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 When bidding here, it is crucial to ensure that you are bidding an
appropriate amount for your action. Setting a bid that’s too low will nearly
guarantee delivery problems, and chances are your ads will be shown very little or
not at all.
Your Facebook Posts Get Little to Zero Engagement.. Despite posting regularly
on Facebook, your engagement is low or non-existent. You’ve tried multiple post
types, published at different times of the day and week, and still aren’t seeing
results. It’s crucial that you understand who your audience is on Facebook and
what topics they want to see and hear about, so you can fill those gaps with
entertaining or interesting content. Check your Facebook Audience Insights to see
exactly who your audience is and what they’re interested in, and check what times
and days they’re online.

2.2 Interactive Marketing 

2.2.1 Fact
Personality is the unique, integrated and organized system of all behaviour of
a person. Personality is the sum total of one’s experience, thoughts and actions; it
includes all behaviour patterns, traits and characteristics that make up a person. A
person’s physical traits, attitudes, habits and, emotional and psychological
characteristics are all parts of one’s personality. Genetically influence on
personality is seen clearly in the effect of physiology on physique and
temperament, their interaction, and the role of nervous system in the acquisition of
personality traits.
The cultural influence commences at birth with the infant’s response to
environment and continues throughout life as the influence of the home,
community and society increases during growth and maturity of the individual.
Parents, teachers and friends exercise great influence on the formation of attitudes
and of the personality as a whole.
Some commonly used personality types are introverts and extroverts.
According to Guilford (1965), the introverts are people whose interests are turned

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inward upon themselves and their own thoughts, whereas the extroverts are those
whose interests are turned outward upon the environment. In facebook with
million user maybe it can be advantage or disadvantage
 
2.2.2 Problem 
Imperfect Understanding of Human Behavior. Customer behavior is dynamic,
and you have to be on your toes to understand what resonates with customers,
what their preferences are and how their expectations change. Predicting human
behavior is quite a challenge as behaviors spring from psychological makeup,
social factors, one’s personal history, economic status, genetics, external factors,
etc. imagine in facebook with million people users is maybe can make some
problem

2.2.3 Solution
There is still not a definitive answer on how to predict human behavior, but
today you have the advantage of having access to massive consumer data sets
available through their social profiles, browsing history, shopping carts, content
consumption, search analytics, etc. The actions we need to take are:
Find the data, analyze it, segment it, and expand on it
Develop a 360-degree profile of your prospect or your customer using their data
Apply heuristics – analyze existing databases to check if a customer made a
purchase, backtrack to find what led to the purchase, correlate this information
with age, gender, income, location etc. and create a customer profile.
A customer profile will allow you to create targeted content with which he
can interact. For example, an assessment on the type of car that would suit the
customer’s needs, or a calculator that predicts the monthly EMI or fuel
consumption based on his usage, or a quiz on his knowledge about your brand, the
result of which can offer a discount on his favorite car.

2.3 Event and Experience

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 2.3.1 Fact
The facts show that audiences of all generations are active on
social. According to Pew Research, 78% of adults aged 30-49 are now on social
media. And so are 37% of those who are at least 65 years old. But just because all
generations are on social media doesn’t mean they behave the same way on those
platforms. When you look closer, you can parse exactly where and how
generations spend their time on these channels. Use these five facts to get to know
the social media habits of your audience, so you can be strategic about marketing
to them on social.
 
2.3.2 Problem 
So hard to get a attention in generation x because some of them not using the
social media , and then its make a problem to get the engagement for the
generation x , as the fact  37% of those who are at least 65 years old using a social
media.
 
2.3.3 Solve
To Get the attention in that area with make a massive advertising with a
content in their age with interactive  , it can in the any platform but must in correct
target and the behavior of the customer, it maybe can hard because we must
analyaze where the demand.
 
2.4 Publicity and Public Relation
 
2.4.1 Fact
A PR agency’s job is to get your story in front of the pre2ss and potential
customers. It might set you back $5,000 per month. But what if you could get the
same—if not better—results yourself, by using Facebook ads?
Facebook ads are one of your biggest business opportunities. The targeting
capabilities, the tracking functionality and the low cost of getting started means
they beat any other form of advertising hands down. If you’re not using Facebook

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ads as part of your overall marketing strategy, you’re missing a trick. Facebook
has a neat little feature called workplace targeting that many people don’t even
know about—and from a PR perspective, it could save you thousands of dollars
every month.
 
 

2.4.2 Problem
A PR agency’s job is to get your story in front of the press and potential
customers. It might set you back $5,000 per month. But what if you could get the
same—if not better—results yourself, by using Facebook ads? Facebook ads are
one of your biggest business opportunities. The targeting capabilities, the tracking
functionality and the low cost of getting started means they beat any other form of
advertising hands down. If you’re not using Facebook ads as part of your overall
marketing strategy, you’re missing a trick.
Facebook has a neat little feature called workplace targeting that many people
don’t even know about—and from a PR perspective, it could save you thousands
of dollars every month.

2.4.3 Solution
Resuming you already have an advertising account, when you’re in the ads
manager, click on create advert. You’ll be taken here, where you need to choose
your campaign objective. You can target the media through any objective, so what
you choose here will be entirely dependent upon your goals. For example, if
you’re trying to get people to take a specific action, such as download an eBook,
you’ll want to choose the conversions objective. If your goal is to drive traffic to a
blog post, you might want to use the traffic objective.
The objective you choose will alter how Facebook optimizes your ads (if you
choose conversions, Facebook will show your ad to the people it thinks are most
likely to convert. If you choose traffic, Facebook will show your ad to the people

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it thinks are most likely to click through). Again, Facebook has data on what
action you’re most likely to take, based on your user behavior.

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CHAPTER 3
3.1 REGULATOR POLICY

3.1.2 Facts
In addition to fiscal and monetary policies, a government affects the economy
through Regulatory Policy, which aims to limit what can be done in the
marketplace. Most governments have some regulations covering a variety of
areas, including:
 Banking, insurance, and other financial businesses
 Safety
 Environmental impact
 Minimum wages

3.1.3 Problems
The latest regulation issued by the government is PP 77 of 2019 concerning
the Implementation of Electronic Transactions and Systems (PTSE). This PP is a
revision of PP 82 of 2012 concerning the same thing.In PP 71 of 2019, one of
them is the government imposed financial financial sanctions on the organizers of
electronic systems (PSE) who violate the rules.Earlier it was mentioned, fines that
must be paid to offenders PSE ranged from Rp 100 to Rp 500 million per content
that displayed negative content.

3.1.4 Solution
Facebook agreed to abide by these rules.Facebook Indonesia's Head of Public
Policy, Ruben Hattari, said, without the rules issued by the Indonesian
government, Facebook as a platform has community standards."We have
community standards regarding what types of content are not permitted and may
be in our services. We as a whole fully support government policies that regulate
certain types of content," Ruben said at the Ministry of Communication and
Information, Jakarta, Thursday (11/7) 2019),and also facebook must coorporate
with the goverment to have a transparency

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REFERENCE
https://www.digitaltrends.com/news/facebook-data-leak-267-million-users-
affected/
https://www.statista.com/statistics/408971/number-of-us-facebook-users/
https://www.marketing-schools.org/types-of-marketing/facebook-marketing.html
https://www.liputan6.com/tekno/read/4105436/facebook-siap-patuhi-regulasi-
indonesia-soal-layanan-digital

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