To study the impact of social media on online buying behavior of youth

A PROJECT SUBMITTED BY
MASTERS OF FINANCIAL MANAGEMENT
SEM II

.TO
TIMSR
BY
Dr. Vinay Kumar
UNDER

TIMSR
MFM – BATCH – 2017-2020
Shyamnarayan Thakur Marg, Thakur Village,
Kandivali (East), Mumbai 400101
Abstract:
In today's scenario social media became a very useful tool in buying behavior decision making. it is
influencing customer/consumer in a dynamic manner. Now customer/consumer is taking help of social
media regarding purchasing of any product. Social media like face book twitter Skype are going to
play a very important role in consumer/customer buying behavior decision making. Now in today's
scenario social media like Blogs, LinkedIn, face book, twitter, Skype, etc. are playing a very important
role in consumer buying behavior decision making process directly and indirectly. In recent trend of
innovation in management social media becomes powerful and cost free approach to promote
product to consumer. As per the survey result India's 75% youth are using social media for sharing
their thought and views and comment in different area of country. In our research study we try to find
out impact of social media in buying behavior of consumer/customer with special reference to Mumbai
city.

Over 130 million Indians are connected to the Web via fixed and mobile broadband. This research
insight studies the impact of social media on online shopping among Indians based on a consumer
survey. This insight discusses the apparent benefits of social media and how it can be applied by
enterprises to their advantage. It also presents an overview of future online retailing trends and
discusses the difference between traditional and social media marketing.

Introduction:
New communication technologies offer media based sharing and discussion, and create
environments where people can share their ideas, products and services. Social media has become a
preferred internet application and is the most important communication tool today. As the frequency of
using the Internet increases, the rate of social media use has also increased
Unlike traditional media, social media impacts a wider audience at a greater pace. The term social
media can be defined as social platforms that enable users to share information, ideas or interests,
and interact, via the internet or mobile systems. These social platforms include some applications
such as chat rooms, discussion forums, location services, social networking, social guides, social
bookmarking, social status networks, weblogs, blogs, podcasts, video casts, wikis, Facebook and
twitter.
As a result of global competition, businesses have gone beyond the traditional boundaries of
purchasing, selling or other commercial transactions and consequently, the boundaries of national
markets have disappeared and become indistinct. A new global vision requires businesses to carry on
their commerce globally rather than in one country, and hence to use their core skills and information
efficiently. Therefore, social media has become very important tool with regard to the effective
dissemination of information.
For this reason, it is beneficial to investigate how target consumers use social media and how they
behave while purchasing a product. This study aims to introduce social media penetrating into our
lives in recent years and bringing a new dimension to internet and to determine the effects of social
media networks on buying behaviors of young consumers in different age groups and educational
levels.
Review of Literature:
Research Topic: Influence Of Social Media Marketing On Brand Choice Behaviour
Among Youth In India: An Empirical Study

According to Bernadette D’Silva Roshni Bhuptani and Sweta Menon Journal Name:
International Conference on Technology and Business Management Page No 757 Results from
the analysis indicate that social media is a very important tool for networking among youngsters.
Youth are increasingly using these websites to stay connected with their friends and family. These
websites also help in building professional contacts and provides the user with various networking
applications that makes them hooked on to these social media websites. Unique features of social
media websites like Facebook, Twitter etc have created huge impetus on the communication platform.
Social media is also used as a marketing tool in creating brand awareness and brand preference among
the consumers. Social media is the cheapest medium for seeking information. Hence it is widely used
by majority of customers for evaluations of brands and products. There is an increasing trend among
youngsters to buy products online through these websites. Marketers have realized the importance of
social media website as an essential component of integrated marketing communications.

Research Topic: Online Shopping Attitude Among The Youth: A Study On University
Students

According to Deepjyoti Choudhury And Abhijit Dey Journal Name International Journal of
Entrepreneurship and Development Studies (IJEDS) 2(1) 2014, 23-32 Page No 30 Since majority
of the respondents shop online, thus this fact can be beneficial for the corporate sector looking for
promoting their brands and doing business over the internet. Majority of respondents shop online but
still the respondents think the reason of not shopping online is due to inability to touch and see the
product physically while shopping It has been found that internet literacy has significant relationship
on online purchase, thus proper care should be taken to promote internet literacy so as to promote
online shopping . From the study it was found that online product price listing has significant impact
on online purchase.

Research Topic: Social Media And Its Impact On Consumers Behavior

According to Elisabeta Ioanăs, Ivona Stoica Journal Name International Journal of Economic
Practices and Theories, Vol. 4, No. 2, 2014, Special issue on Marketing and Business
Development, e-ISSN 2247–7225 Page No:300 After the analysis of the collected information from
the 116 subjects, we can conclude the fact that most consumers who buy online are indeed young,
between 25-29 years. As a result, this first hypothesis can be entirely verified, 47% of the subjects
who buy online products are between 25-29 years. From this research we could do a consumer profile
of the people who buy online. The consumers that usually buy from online are young, working in a
company, with salary over 2001 lei monthly, most of them are females and has at least an account on
social ln network. Before purchasing a product on online they usually inform themselves from
forums, company’s websites, Facebook accounts or peer reviews.
Research Topic: The Impact Of Online Social Networks On Consumers’ Purchasing
Decision

According to Ayda Darban Page No 38 Consumers’ choices regarding food retailers can be
influenced
by the gathered information from different sources especially from online social networks.
Consumers the most convenient way to compare between different food retailer
shops, products, or services is on Facebook because of its features. Consumers can express
their satisfaction or dissatisfaction about their experience to companies, about
products, or services, or share their knowledge and opinions on their online social network
and share with others

Research Topic: A Study Of Indian Youth's Inclination Towards Online Shopping Via
Social Networking Sites

According to Seema Sharma Journal Of Department Of Communication Studies

University Of Pune Page No 31 Young professionals and students who were very prompt to answer
the questionnaire appeared little puzzled when the actual analysis is done .The internet access is all
time favorite activity for all individuals but they seemed to be confused of incorporating their buying
activity online while they are on social network . More than 85% young women and men like online
shopping but their buying decision does not always happen when they are on social network. But only
25% respondents agreed that they incorporate their social network presence with actual buying. Their
shopping experience starts with the clicking the ads which appear on the screen while they are
checking messages or updating status on social networking site but it very rarely turns into buying a
product after browsing . It was found that men are more likely to browse ads and explore more
options and other shopping portals than women but only 50% men do click the ads and browsing
shopping portals, in young women this percentage is only 40%. Thus the unplanned buying decision
happen only once a month or twice a month among both men and women.

Research Topic - Online Shopping Behavior Among Higher Education Students With
Special Reference To Palakkad, Kerala, India

According to, M. Mahesh Kumar, Sobha.P.G, online shopping is becoming increasingly popular
for a variety of reasons. The study brought to therefore that online shoppers are young, highly
educated, active, intensive, and are expert users of the internet. Research has confirmed that the
perceived marketing mix and perceived reputation could impact on the consumers’ attitude of
adopting online shopping. The largest driving factor for online shopping is convenience.

Research Topic: - Factors Influencing Online Buying Behavior Of College Students: A

Qualitative Analysis

According to, Vilasini Jadhav and Monica Khanna, Journal Name, Page no – 10, attempt was
made to explore the factors influencing the online buying behavior of the college students, in
Mumbai. The main influencing factors for online shopping were identified as availability, low price,
promotions, comparison, convenience, and customer service, perceived ease of use, attitude, time
consciousness, trust and variety seeking.
Research topic: - a study on online shopping behavior among the students.

According to, Ms. Neha Gupta/Dr. Deepali Bhatnagar, IOSR Journal of Business and
Management (IOSR-JBM), Page No – 06, Factor analysis results reveal that Experimental
Uniqueness, Customer Service and Convenience tend to be three significant dimensions as to why
customers prefer internet shopping. This use of technology has opened new doors and opportunities
that enable for a more convenient lifestyle today. Online shopping is a vast growing technology. Thus,
a consumer being the king of the market needs a treatment like king.

Research Topic: A Study On Online Shopping Behavior Of Hostel Students

According to, Tarun Gupta Shikhar Mani Assistant Professor A successful webstore is not the
just a good looking website with the dynamic technical features but is also emphasis on building the
relationship with customers with making money. Firstly understanding the customer’s needs and
wants is very essential for building a relations with the customers keeping companie’s promises gives
a customer a reason to come back and meeting the expectations gives them a reason to stay.
It shows the company value towards its customers over the website communication. Customers needs
and the expectations are the not the same age, gender, experience, culture are all the important factors.
Users with more online influence focus on the variables that directly influence the task .

Research topic: a study on the lifestyle of youth and its impact on online shopping.

According to Dr. Venugopal Swamynathan.C Journal of Research in IJEMR December 2016 - Vol 6
Issue 12 - Online - ISSN 2249–2585 Print – ISSN 2249-8672
To conclude, the youth, their lifestyles, their purchasing power, awareness about theproducts etc. have
greater influence on the buying behaviour. Changing lifestyles warrant the marketers to understand the youth in a
better way to devise suitable marketing strategy to retain the present and to capture the potential
market. Of late Foreign Direct Investment is also increasing in the youth segment, hence under this
study, the focus is on the youth as an influencing agent to the marketers who needs to produce what the customer needs
so as to survive in the market. India is rich in young population. In India, internet is around two
decades old. India is among the top 3 population of internet users with 145 million consumers. The online shopping
is having just 3-4% of organised retailing. This reveals that some elements are the hindrance in the
prosperity of online marketing in India. The risk perceived by the youth in India is one of them. The
prosperity of online shopping in India is huge because of its big size of youth population. The
government is investing a lot in internet infrastructure.

Research Topic: Consumer Attitude Towards Online Shopping’s

According To Muhammad Umar Sultan And Md Nasir Uddin Department Of Business

Administration. Online shopping is becoming more popular day by day with the increase in the
usage of World Wide Web known as www. Understanding customer’s need for online selling has
become challenge for marketers. Specially understanding the consumer’s attitudes towards online
shopping , making improvement in the factors that influence consumers to shop online and working
on factors that affect consumers to shop online will help marketers to gain the competitive edge over
others.
Research Topic: Globalization does lead to change in consumer behavior: An empirical
evidence of impact of globalization on changing materialistic values in Indian
consumers and its aftereffects

According to Nitin Gupta, Emerald Group Publishing Limited,:Vol. 23 Issue: 3, pp.251-269, The
results showed that predisposition towards foreign brands had a significant impact on materialistic
values among the Indian consumers. he younger Indian consumers had significantly higher
materialistic values than the older age groups. Lower income groups have showed significantly
greater materialistic values than the higher income groups.

Research Topic: Social Institutions and the Changing Roles of Youth

According to, Margaret Weigel Katie Davis Carrie James Howard Gardner, New Digital Media
Page No: 40 In this paper we have examined how an individual's role as a student, consumer,
producer and civic actor may be influenced in the digital age by both internal developmental factors
and external deployment of NDM.

Research Topic : To Study the Reasons For Customer Abandoning Their On-Line
Shopping Cart Before Purchase Completion Stage

According to Ojaswita Shrivastava, The International Journal Of Engineering And Science

(IJES) Page No 71 Among the risk factors that were identified the risk that someone might steal
personal information has a significant impact on the preference of shoppers to shop on-line. The risk
factor that someone might steal credit card number also has a positive impact.

Research Topic : An Effect of Social Media on the Youth Buyer Behaviour for Apparels

According to Sumit Chaturvedi, Dr. Sachin Gupta & Dr. Devendra Singh Hada, Page no. 4 This
study had given a clear indication that youth buying behavior is changing very rapidly & marketers
have to change their strategies according to the scenario. Varies studies have been said that Social
media is mostly use by youth .So now the retailers have to focus on their promotional strategies. They
have to change them according to the taste and preferences of youth. Therefore, proper formulation of
marketing strategy needs an overall understanding of this behavioral pattern of youth.

Objectives of the study:

1. To study the demography of respondent.
2. To study the behavior of respondent while shopping online due to social behavior.

Hypotheses:
Hypo 1 - There is a significant difference between Gender and level of awareness about the social
media sites or references.

Hypo 2- There is a level of agreeableness of the impact of social media on online shopping.

Hypo 3- It also shows the % of usages of social media.

 Data analysis:
T-Test: Two-Sample Assuming Unequal Variances

Male Female
Mean 8.083333 7.966666667
Variance 6.023714 9.836571429
Observations 36 36
Hypothesized Mean Difference 0
df 66
t Stat 0.175769
P(T<=t) one-tail 0.430507
t Critical one-tail 1.668271
P(T<=t) two-tail 0.861014
t Critical two-tail 1.996564

An independent-samples t-test was conducted to compare the scores of males and females. There
was a significant difference in scores of males (M 09, SD = 2.45) and females (M = 08, SD = 3.13; t =
0.60, p = 0.28, two-tailed). The magnitude of the differences in the means is 0 (assumption). There is
a difference in the scores of male and female.

Hence, There is difference in the level of scores between the male and female.