Impact of Social Media Advertising on Consumer Buying Behavior in Indian

SUMEDHA-Journal of Management Kunal Gaurav*, Aishwarya Suraj Ray**

Referred Journal of CMR College of Engineering & Technology
January - March, 2020, Volume 9, No. 1, pp 41-51
ISSN: 2277-6753 (Print) ISSN: 2322-0449 (Online)
http://cmrcetmba.in/sumedha/
DOI: https://doi.org/10.46454/sumedha/9.1.2020.3

Impact of Social Media Advertising on Consumer

Buying Behavior in Indian E-commerce Industry
Kunal Gaurav*, Aishwarya Suraj Ray**
*Area Chair (Research and Consultancy), Siva Sivani Institute of Management, Secunderabad, India
https://orcid.org/0000-0001-8757-9577
**Assistant Professor (Marketing), EThames Degree College, Hyderabad, India
https://orcid.org/0000-0003-1210-3640

Abstract
PUBLISHING C HRONOLOGY
Over the past two decades, marketing has made a paradigm shift from the P APER SUBMISSION D ATE :
traditional approach to the digital approach. The single biggest event that NOVEMBER 15, 2019;
has affected marketing in the last two decades is the mass adoption of the P APER SENT BACK FOR REVISION :
internet into everyday life. Our generation is experiencing a digital D ECEMBER 12, 2019;
transformation. Digital marketing is changing the market every second. The P APER A CCEPTANCE D ATE :
way customers buy products now is very different from how they used to J ANUARY 7, 2020
buy in the past. Customers are now educated, smart, and exposed to different
platforms where they can get information about any product in a fraction of Cite this Article as follows as
seconds. Businesses have been quick to realize how critically important it is per APA:
to build their online presence for creating brand awareness, generating Gaurav, K., &Suraj Ray, A.
business, and also to exist in this highly competitive market. Social Media is (2020). Impact of Social Media
playing a critically Significant part in the buyer's journey as social media Advertising on Consumer
advertising influences customers at every stage of the buying process starting Buying Behavior in Indian
from recognition of a need and till post-purchase behavior of customers. E-commerce Industry.
Companies are focusing on improving post-purchase behavior as it leads to SUMEDHA JOURNAL OF
customer satisfaction and hence ultimately leading to positive customer MANAGEMENT, 9(1), 41.
experience. By recognizing the importance of social media, the study is doi:10.46454/sumedha/
undertaken to investigate the impact of social media advertising on consumer 9.1.2020.3
buying behavior.
Keywords: Social media advertisement, consumer buying behavior, multiple
regression analysis, and online advertising.
JEL Classification:M30, M31, M37

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Impact of Social Media Advertising on Consumer Buying Behavior in Indian
Kunal Gaurav*, Aishwarya Suraj Ray**

INTRODUCTION
In recent years, advertising has evolved drastically due to an exponential increase in the use
of the internet. The mass adoption of the internet in day to day life across the globe has given
rise to the increasing use of social networking platforms. Since 1994 internet-based advertising
is transforming the advertising and e-commerce industry by providing more efficient
mediums of advertising (Evans, 2009). With the advent of social networking platforms, users
are now constantly connected to the internet and to each other which has made advertising
incredibly social. Advertising has expanded since the 1980s and today does not have the
limits of TV and print. The Internet along with social media has encouraged marketing to
take so many different forms to create new strategies. Online advertising is evolving since its
interception from 1994 and it will continue to evolve to suit the demands of time, marketers,
and customers.
Social Media has given consumers the power to investigate products and services to label
them, criticize them, and more (Ioanas and Stoica, 2014). The online environment is now
viewed by users from entirely different and new perspective i.e, in a commercial way. The
development and establishment of online stores have converted users into buyers. Social
media has changed the way consumers and marketers communicate. Today companies have
promotional pages on social networking platform which not only provides information but
also complements the information held about products and services as this information is
held by the feedback, reviews, and testimonial of consumers about products and services. In
simple terms, social media has provided a virtual network place where consumers can enjoy
expressing and exchanging opinions, information, feedback on an everyday basis (Altaf, 2014).
It's quite evident that folks are using social media extensively, also they read and write on
different products and services they use. Hence, consumers are more likely to get influenced
by advertisements displayed on their social media pages. There might be several reasons
why customers get influenced by ads shown on social networking websites. Advertisers take
advantage of the user demographic information and make their advertisement more customer-
centric. The main intention of using social media advertisements is to determine a robust
customer base and enhance the customer's experience. At this backdrop, the study is intended
to find customers are affected by which social media advertising platform and empirically
measure the impact of social media advertising on consumer buying behavior.

LITERATURE REVIEW
Over the past few decades, marketing has made a transactional shift from the traditional
approach to the digital approach. Researchers and practitioners have written on a variety of
issues in the area of social media and social media advertising. It has given bundle of
opportunities to consumers for changing the way they shop and buy. Facebook, Youtube,
and Instagram have played an extremelyimportant role in expanding consumers' online
purchases (Mukhaini, Ismael, and Dhuhli, 2015). One of the reasons for this change is cookies
based advertising, which is often considered as a modern form of direct marketing.

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 Impact of Social Media Advertising on Consumer Buying Behavior in Indian
Kunal Gaurav*, Aishwarya Suraj Ray**

Advertisements are broadcasted by targeting potential markets by segmenting the market

based on various demographic, geographic, psychographic, and behavioral aspects (Riegner,
2007). Levin and Weller (2005), found that most of the online shoppers are often younger,
wealthier, educated, gadget literate, spend time on the internet and shop online. Singh and
Sinha (2013) further supported this study and examined the Indian market and found that
the number of young customers has increased drastically (Balakrishnan, Dahnil and Yi, 2014).
Convenience, ease of access, innovation, rich information, and price are the key factors that
motivate young customers to buy. On the other side, Li and Zhang (2002) determined factors
driving the purchase behavior of customers. They concluded that the look of a website, feel,
design, a variance of website and brand not only converts a social media user into an online
shopper but also leads to customer satisfaction. In an extended study, researchers suggested
marketers to focus more on quality rather than price and glamour, to reduce the number of
times an advertisement is shown to avoid boredom and keep the novelty of a product alive
and finally suggests that celebrities should be used for affirmatively positive advertisements
and how these factors shall be used effectively not just during the prime watching time but
rather in a qualitative way (Ahmed and Ashfaq, 2013). India has always been the growing
market for social media networks as a large number of people come online.
Because of this, there has been an increasing trend of online shopping among Indians. The
shopping behavior of customers has always been changing (Dey, 2017). While carrying out
any marketing activity marketers are considering various factors right from customer
perception about the online channel to the shopping needs of customers. Li, Kuo, and Rusell
(1999) proposed a model to understand the customer online buying behavior which focused
on how demographics, knowledge of that online platform, perceptions about that online
channel, and its uses, shopping needs, and orientations guided the purchasing decision of
consumers online. Consumer buying behavior on online platforms is also governed by various
intrusive and extrusive factors like, need for recreation, convenience, website attributes, online
advertising, social communication, information search and security, and privacy concerns,
this was validated by Bagga and Bhatt (2013) by conducting research based on these factors
and finalized an approach to identify several effective internet tools that brands and companies
could use for their online marketing and advertising to capture their required consumers'
buying behavior patterns. The study was further supported by Chawla, Khan, and Pandey
(2015) where they found that online behavior is influenced by demographics and there are
other theoretical and psychological aspects behind it. The study also mentioned that a proper
understanding of the online buying behavior of customers provides the best opportunities
for designing ideologies, strategies, and capabilities that online buyers quench for and value.
Hence, to formulate strategies and decide marketing budget it is highly important for
marketers to understand which social networking sites customers use and are likely to believe
more. Hutter, Hautz, Dennhardt, and Fuller (2013) explained how the importance of
applications like Facebook, Youtube, and networking sites is growing and increasing influence
on customers' communication habits. Undoubtedly, the new transformed communication
setup has converted consumers from being passive participants in marketing to being active

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Impact of Social Media Advertising on Consumer Buying Behavior in Indian
Kunal Gaurav*, Aishwarya Suraj Ray**

creators and influencers. Social Media has indeed given much power to customers. It is now
evident that social media has a significant positive impact on consumer buying behavior
which was supported by Berger, Mathur, Black, Cao, and Weinberg (2012) in their study on
the impact of social media usage on consumer buying behavior. It's quite fair to say that
consumers behave differently on different platforms. The way a customer behaves in a physical
retail store is very different from how he behaves on virtual stores i.e., Customers exhibit
different behavior while browsing websites of an e-tailer. This is commonly known as online
buying behavior, which is often influenced by several internal and external factors. Despite
the fact that India is still in its initial stage of development, online retailing has shown
tremendous growth in India from last few years, which gave many opportunities to social
media platforms to rule the cookie based advertising. Undoubtedly, social media advertising
contributes immensely to the sales of e-commerce companies and hence, it has become highly
important for marketers to know and understand customers are influenced by which social
media platforms at large.

RESEARCH OBJECTIVES
• To investigate the impact of social media advertising on consumer buying behavior.
• To appreciate the influence of independent variables on the dependent variable.

RESEARCH METHODOLOGY
The base for this study is primary data collected from social media users at Hyderabad. A
convenience sampling method was considered for identifying the respondents for the present
study. A sample size of 400 was considered for collecting data which was collected through
giving a structured questionnaire to respondents directly, which resulted in primary data
collection, and the study is intended to appreciate the customer's perspective concerning the
impact of -Social Media Advertising on Consumer Buying Behavior. The two major sources
for secondary data were EBSCO and Google scholar; various research papers and articles
were sourced from these data sources.
The various items used in the questionnaire to measure the construct dimensions were adopted
from previous research, viz., Alalwan (2018), Fotis, Buhalis, and Rossides (2020),
ErtemelandAmmoura (2016). The various variables and items were identified from research
papers related to the present study while undertaking an exhaustive literature review. In the
structured questionnaire, all the selected items were presented in the form of variables along
with a five-point scale where 1 stood for highly insignificant and 5 stood for highly significant
in the agreement of the variable.
The two-step strategy was adopted for data analysis. At the first stage, the mean score of four
independent variables (Facebook Advertisement, Youtube Advertisement, Instagram
Advertisement, and Pinterest Advertisement) and one dependent variable (consumer buying
behavior) variable was commuted. At the second stage, multiple regression analysis was
performed to find the impact of social media marketing on the consumer buying behavior

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 Impact of Social Media Advertising on Consumer Buying Behavior in Indian
Kunal Gaurav*, Aishwarya Suraj Ray**

and investigate the impact of a demographic variable (viz., gender and age) on Social media
marketing -Consumer buying process relationship.

DATA ANALYSIS AND INTERPRETATION

Multiple Regression analysis is one of the very important and significant tool for the
researchers which helps in obtaining the estimates correctly and interpreting them in
abundance. It is commonly known as MRA which is often used to measure the impact of the
various independent variables on one dependent variable. The technique turned out to be
very helpful in quantifying the impact of social media advertising on consumer buying
behavior. In the present research, consumer buying behavior was considered as the dependent
variable and four major constructs of social media advertisement viz. Pinterest Advertisement,
Facebook Advertisement, Youtube Advertisement, Instagram Advertisement were considered
as independent variables (Refer Figure 1). Consumer buying behavior score was estimated
by calculating the arithmetic mean for various constructs associated with consumer buying
behavior that were extracted from the extant literature review.
The following multiple regression equation was developed to investigate the impact of social
media advertising on consumer buying behavior;

Y = αi + β1 Xi1 + β2 Xi2 + β3 Xi3 + β4 Xi4 + Ui

Where,
Y represents Consumer Buying behavior (dependent variable);
i represents the sample unit from i to n;
i represents the constant;
Xi1 , Xi2 , Xi3 , and Xi4 represent different constructs of Social Media Advertisement viz.
PinterestAdvertisement , Facebook Advertisement, Youtube Advertisement, Instagram
Advertisement;
1, 2,3, 4, and 5 represent the strength of different constructs of Social Media Advertisement
viz. Pinterest Advertisement, Facebook Advertisement, YoutubeAdvertisement, Instagram
Advertisement;
Ui represents the error terms
Figure 1: Showing the Schema of the Research

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Impact of Social Media Advertising on Consumer Buying Behavior in Indian
Kunal Gaurav*, Aishwarya Suraj Ray**

The multiple regression model was found to be highly significant (F = 819.183, p<0.0) (Refer
Table 1) at a 5% level of significance which indicates that all the independent variables
considered for multiple regression model are significant in determining consumer buying
behavior. In addition to this, a Significant ANOVA test effectively supported the employment
of multiple regression analysis to measure the impact of social media advertisement constructs
on consumer buying behavior. To simplify, it can be assumed that the multiple regression
model applied here accurately calculates the degree of influence of social media
advertisements constructs have in determining consumer buying behavior.
Table 2 is the model summary that provides R, R square, adjusted R square, standard error,
and Durbin- Watson value which is used to determine how well a regression model fits the
data. The .945 value of R which is also known as multiple correlation coefficient indicates a
good level of prediction. It exhibits how effectively the independent variables predict the
dependent variable. R's adequate value reflects the strength of the relationship between
independent and dependent variables. The positive or negative sign of R shows the orientation
of the relationship, i.e., direct or inverse. In this MRA, the R-value of .945 indicates a stronger
association between the constructs of social media advertisements and consumer buying
behavior. Another measure in the model summary is R², which stands for Coefficient of
determination signifies the amount of variation in the dependent variable explained by the
regression model. The statistic of R² gives vital details about the goodness of fit concerning a
multiple regression model. When R-value is 1, it indicates that the regression line perfectly
fits the data. R² value ranges from 0 to 1, R² value of 0.3 and above considered a good model
in case of multiple regression analysis. From the output of the model, it can be concluded
that the adjusted R Square of this model is .892 with R Square = .893, which means that the
multiple regression analysis explains 89.2% of the variance in the data. The Durbin- Watson
d= 2.010, which is between the two critical values of 1.5 < d < 2.5 and therefore it can be
concluded that there is no first-order linear autocorrelation in the data. The last critical measure
in the model is the Durbin Watson test, it is often used for detecting the presence of
autocorrelation in the residuals from a regression analysis. The value which is less than 1.0
suggests that there might be cause for concern. Durbin-Watson value of 2.010 exhibits no
issue of serial autocorrelation in the data used for analysis.
Table 1
ANOVAa
Model Sum of Df Mean F Sig.
Squares Square
1 Regression 87.802 4 21.951 819.183 .000b
Residual 10.477 391 .027
Total 98.279 395
a. Dependent Variable: Subscale1Mean
b. Predictors: (Constant), Pinterest Advertisement , Facebook Advertisement,
Youtube Advertisement, Instagram Advertisement

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 Impact of Social Media Advertising on Consumer Buying Behavior in Indian
Kunal Gaurav*, Aishwarya Suraj Ray**

Table 2

Model Summaryb
Model R R Adjusted R Std. Error of Durbin-
Square Square the Estimate Watson
1 .945 a .893 .892 .16369 2.010
a. Predictors: (Constant), Pinterest Advertisement, Facebook Advertisement,
Youtube Advertisement, Instagram Advertisement
b. Dependent Variable: Consumer Buying Behavior
Table 3

Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
1 (Constant) .334 .073 4.584 .000
Facebook Advertisement .229 .009 .441 24.582 .000
Instagram Advertisement .200 .016 .257 12.845 .000
Youtube Advertisement .232 .011 .370 20.801 .000
Pinintrest Advertisement .259 .013 .364 20.449 .000
a. Dependent Variable: Subscale1Mean
The above table (Table 3) shows the regression coefficients, the intercept and the significance
of all coefficients and the intercept in the model. In this multiple regression analysis, all four
constructs of social media advertisement viz. Facebook Advertisement, Instagram
Advertisement, Youtube Advertisement, and Pinterest Advertisement turned out to be
significant at 5% level in determining consumer buying behavior. The role of the independent
variable in predicting and describing the dependent variable can be determined by the beta
coefficient since it implies that the contribution of the independent variable is higher when
the value of the beta coefficient is more. The beta coefficient is expressed in standard deviation
units and depends on how independent variables affect the dependent variable.The following
multiple regression model can be written as given below;
Consumer Buying Behavior =.334 + .229 (Facebook Advertisement) + .200 (Instagram
Advertisement) + .232 (YoutubeAdvertisment) + .259 (Pinterest Advertisement)
Unstandardized ? coefficients are known to extract the equation of multiple regression analysis
in this study. From the above analysis, the significant relationship between the independent
variables (Facebook Advertisement, Instagram Advertisement, Youtube Advertisement, and
Pinterest Advertisement) and dependent variable i.e. Consumer Buying Behavior can be
concluded. From the positive signs of all four estimates of beta coefficients, it can be concluded

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Impact of Social Media Advertising on Consumer Buying Behavior in Indian
Kunal Gaurav*, Aishwarya Suraj Ray**

that the higher will be the extent of these social media advertisement constructs, higher will
be the level of consumer buying behavior. Pinterest advertising turns out to be more effective
among four considered platforms because it is incredibly active platform with large number
of female user base. The engagement rate is often high because the advertisements are highly
targeted and are of user's interest. Hence, among all four constructs of consumer buying
behavior Pinterest stands first with a beta coefficient value of .259 whereas Instagram
Advertisement with beta coefficient value of .200 is found to be having least impact on
consumer buying behavior. Hence, based on the regression performed, it can be said that
consumers are highly influenced by advertisements shown on their social networking page.

FINDINGS OF THE STUDY

The present study successfully investigated the impact of social media advertising on
consumer buying behavior. The objectives of the study were two-fold that included: to identify
which social media constructs influence consumer buying behavior at large; and to investigate
the impact of social media advertisement constructs on consumer buying behavior in the
context of the Indian e-commerce market. The four commonly used social networking
constructs were identified for analysis. All the four constructs were found to be very important
in deciding the strength of social media advertising in Ecommerce Market. The multiple
regression analysis has revealed that all the constructs of social media advertising viz.
Facebook Advertisement, Instagram Advertisement, Youtube Advertisement, and Pinterest
Advertisement contribute significantly to consumer buying behavior and predict a substantial
percentage of the variation in consumer buying behavior. Concerning the impact of social
media advertising on consumer buying behavior in the Indian e-commerce industry, findings
of the present study were found to be consistent and also supports the findings of some
previous studies, which suggested the high influence of social media advertisement on the
consumer buying behavior (Ertemel and Ammoura, 2019; Lee and Hong, 2016; Bakshi and
Gupta, 2013).

CONCLUSIONS
In simple words, it can be said that the buying behavior of e-commerce customers in India is
highly influenced by social media advertising. In this era of technological advancements,
social media does prove to be very influential on our decisions due to the benefit of its virtual
ambiance and online world that it encompasses us in which does bring out the fact that
social media will potentially grow into a bigger marketplace for businesses to promote their
brands and products to fetch customers and our research did allow the fact of its impact on
a consumer's buying behavior to turn true. Ultimately it can be suggested that as a marketer
it is essential to keep up with the trends of an ever-changing market, this research could be
used as a base to understand the actual scope of social media advertising holds in deciding
the response of a consumer and how well an organization can utilize this for their benefit.

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 Impact of Social Media Advertising on Consumer Buying Behavior in Indian
Kunal Gaurav*, Aishwarya Suraj Ray**

LIMITATIONS AND FUTURE RESEARCH

The research study is based on the primary data collected from social media users at
Hyderabad. As convenience sampling is used for collecting data, the findings of the research
study cannot be generalized. Though the research was intended to examine the impact of
social media advertising on consumer buying behavior, the sample was biased. Although
this study has successfully examined the impact of social media advertising on consumer
buying behavior, future researcher may include other social media websites like Linkedin,
Snapchat and Twitter. Hence, consideration of good number of social media platforms and
using random sampling method will add value to the existing body of knowledge. Researchers
may also consider the impact of other demographic variables like age and gender. At the
same time, the study can be replicated in other geographical and cultural context.

AUTHOR’S CONTRIBUTION
The research idea was conceived by Ms. AishwaryaSuraj Ray and the research model was
developed by Dr. KunalGaurav with the help of inputs taken from extensive literature survey.
Ms. AishwaryaSuraj Ray extracted relevant research papers from EBSCO, Emerald & Google
Scholar, filtered using releanat key words, and developed strong research foundation by
developing extent literature review for the research study. Dr. KunalGaurav verified the
literature review and in consultation with Ms. AishwaryaSuraj Ray developed the instrument
for data collection and subsequently the instrument was administered to the selected
respondents for the purpose of primary data collection. The empirical data analysis was
conducted and relevant data analysis tools were employed in SPSS 20.0. The data
interpretations were devised and manuscript of the research paper was written by Ms.
AishwaryaSuraj Ray in consultation with Dr. KunalGaurav.
CONFLICT OF INTEREST
The authors certify that they have no affiliations with or involvement in any organization or
entity with any financial interest, or non-financial interest in the subject matter or materials
discussed in this manuscript.
FUNDING ACKNOWLEDGEMENT
The authors received no financial support for the research, authorship, and/or for the
publication of this article.

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 Impact of Social Media Advertising on Consumer Buying Behavior in Indian
Kunal Gaurav*, Aishwarya Suraj Ray**

AUTHOR’S PROFILE
Dr. KunalGaurav is a rare amalgamation of an educator, an administrator and a researcher.
He is an agriculture science graduate and holds MBA (Gold Medalist) with specialization
in marketing management. He is an AIMA - Accredited Management Teacher and currently
working as Area Chair - Research & Consultancy at Siva Sivani Institute of Management,
Secunderabad, India.. He also holds the honorary position of Senior Vice President of
Operations - Internationally Accepted Marketing Standards Board (IAMSB), International
Institute of Marketing Professionals (IIMP), Canada. Moreover, He is also associated with
reputed institutions such as ICFAI University Group, Hyderabad, Tata Institute of Social
Sciences (TISS) - Hyderabad Campus, Symbiosis Law School, Hyderabad &NMIMS Global
Access School for Continuing Education- NMIMS University, Mumbai as a Visiting Faculty
in the area of Marketing& Strategy.
Ms. AishwaryaSuraj Ray. She is currently associated with EThames Degree College,
Hyderabad as Assistant Professor in the area of Marketing. She has earned her MBA in
Marketing from Jaipur National University, Jaipur, India and M.Com from Dr. A P J Abdul
Kalam University, Indore, India. She has analytical bent of mind and she often undertakes
research in contemporary trends in marketing. She has presented her research works at
various National and International level conferences. In addition, she has published number
of research papers in journals listed at UGC-Care and Indexed by Scopus. Her research
areas of interest include Customer Experience Management, Visual Merchandising and
Online Buying Behavior. Prior to her academic career she has been associated with top
Indian organizations like Reliance JioInfocomm Ltd., Concrete Builders and ICICI Bank.
She is Google certified digital marketer and holds various certificates in the same area. She
has gone through extensive training of Business Analytics using R and SPSS.

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Reproduced with permission of copyright owner. Further reproduction
prohibited without permission.