Impact Digital technology provides a new channel to

Impact of Social Media on Consumer Buying Behaviour-A
Conceptual Study

ABSTRACT

Today
digitization has changed consumer behavior in several ways. The automation of
processes has resulted in the changes not only in human actions but also in their
behaviour. Buying behavior
is changing at a faster rate in the customer-oriented market environment. The access
to information and social networking is creating the impact of new technologies
deeper into the organization. The purpose of this study is to explore the impact
of social media in business in greater detail and gain insights about how
consumers experience and are influenced by the social media.

Key
Words

Digital Environment,Consumer
Behavior, Behavioural Pattern, social technologies

.

Introduction

Digital environment has opened the new horizons for the users from
a new perspective, in a commercial way.The 
new form of  social marketing  have turned users into consumers. Digital
technology provides a new channel to acquire product information via social networking..The digital platform, on
a mass scale, connect people in ways that facilitate sharing information,
thereby reducing the opportunities for exploitation—whether by charging more
than a competing supplier for otherwise identical goods and services or
charging anything at all for products that simply don’t work.. The Social Web
dramatically levels the playing field by making information plentiful, just as
it also levels businesses and organizations that operate on the principles of
making information scarce. The Social Web exposes the good, the bad, and the
ugly, simultaneously raising up what works and putting down what doesn’t
without regard for the interests of any specific party

 

Web
2.0 is challenging business leadership not only in the marketplace but now as
well across business fronts ranging from corporate reputation and  retention of key employees to the design of
new products and services

. Social
business—the application of social technologies as a formal component of
business processes—revolves around understanding how your customers or
stakeholders connect to your business and how you reshape your business to
understand, accept, and innovate based on their involvement. Social business is
about integrating all your business functions: customer support, marketing, the
executive team, and more. Digital platforms not only facilitates transactions
in tangible goods and services but also gives online access to content and
services. Access to content and digital services create numerous advantages due
to low marginal costs of distribution, instant and unlimited access and reduced
environmental costs.

Literature
Review

Significance
of Social Media in context of Businesses

” What’s so appealing about
social media is its power to reach not just one consumer at a time, but a huge
network of friends through the open graph. Businesses must learn to do this or
risk losing their connection with consumers altogether. Social Media Marketing:
The Next Generation of Business Engagement shows you how. —Roger Katz, CEO,
Friend2Friend, Palo Alto, CA, and Barcelona

“Innovation is not a
one-way street where you walk alone! Take your customers on the journey, and
see the difference. Social technologies, clearly explained in Dave’s book,
enable you and your customers to work as a team.”
—Kaushal Sarda, Founder, Uhuroo, Bangalore

“Purchase decisions are now
influenced by complex networks of friends, family, and peers. The new market
winners will be the companies that excel at identifying and engaging with their
customers’ influencers across the Social Web.”
—Paul May, Founder and CEO, BuzzStream, Austin, TX

A study conducted on Consumer behaviour in a
digital environment in (August 2011) concludes that 
Consumers are unable to search and analyse all relevant information
available online and use
search and filtering tools to identify the most relevant information.

A study conducted on Consumer Buying Behavior
In Digital Era”  by Prof. Lalitkumar P.
Patil  to study factors which affects
consumer’s online purchase decision. The study concluded that  Increased used of internet and socialmedia
are increasing online purchase. study shows that people are more likely to buy
products and services online, there is much scope for the online sellers to
grab customers who are not yet using internet services

A study conducted on  Impact Of Information Technology On Consumer
Purchase Behavior by Dr. Mahabir Narwa and Dr. Geeta Sachdeva in (July 2013)
Objective of Study was to  study the
impact of IT on consumer purchase behavior .The findings state that every field
of human activity, may it be his daily life, official life, everything is now
influenced under the cover of IT. The findings highlight that IT has a great influence on consumer
purchase behavior. It is argued that the outcome of the study will certainly be
helpful for the marketers to define their marketing strategies accordingly.

A study conducted on  -A shift Paradigm of Consumer towards
online shopping by   Dr. Vipin Kumar*
& Kadambini Kumari  The objective of
study to improve our understanding of online and physical consumer behaviour.
People are intend to try new things & like to be noticed as early adopter
of technology advancement .

 Consumer engagement in social media and rise in use of
technology  has resulted in paradigm shift
in consumer behaviour with respect to activities, habitats, attitude and
interactions. Due to advancement of technology ,the businesses have embraced
the digital marketing as a tool for customer engagement. Being a new tool for
interaction, organisations need to understand how social media has impacted
consumer buying behaviour. Consumer behavior is
defined as the study of how individuals, organizations and groups select ,buy
and make  use of products, services,
experiences and ideas  to satisfy their
need and wants (Kotler and Keller, 2012).With the dawn of the Internet,
scholars began predicting a shift in power from the marketer to the consumer,
suggesting a new form of consumer–firm relationship (Bakos 1991; Deighton and
Kornfeld 2009; Kozinets 1999; Levine et al. 2000; Shipman 2001). The diffusion
of Internet technologies and their associated characteristics influence the
emergence and evolution of consumer empowerment (Kozinets et al. 2010). The
rise of Internet commerce removed geographic and time constraints, empowering
consumers through expanded assortments, increased retail options, and new
service features (Day 2011).

Using
the internet, social media, mobile apps, and other digital communication
technologies has become part of billions of people’s daily lives.This is for
many purposes, including in their roles as consumers as they search for
information about products, purchase and consume them, and communicate with
others about their experiences. Marketers have responded to this fundamental
shift by increasing their use of digital marketing channels. In fact, by 2017
approximately one-third of global advertising spending is forecast to be in
digital channels Thus, future consumer marketing will largely be carried out in
digital settings, particularly social media and mobile. It is therefore
necessary for consumer research to examine and understand consumer behavior in
digital environments. This has been happening over the last decade, with
increasing amounts of research focusing on digital consumer behavior issues.
The literature is still in the dawn stage and more research is of course
needed— particularly given the ever-changing nature of the digital/social
media/mobile environments in which consumers are situated and interact with
brands and each other.     

Area of
Exploration

A PARADIGM SHIFT FROM PAST

 

 

 

 

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