Effect Of Social Media On Consumer Buying Behaviour Of Jumia Nigeria

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Effect Of Social Media On Consumer Buying Behaviour Of Jumia Nigeria


Abstract


This research examined the effect of social media on consumer buying behaviour of Jumia Nigeria in Calabar metropolis. The study was conducted in a bid to provide empirical evidence on the effect of social media on consumer buying behavior in order toassist Jumia Nigeria influence the behavior of its customers favourably using social media. It had the specific objectives of examining: the effect of FaceBook, Twitter and YouTube on consumer buying behavior towards Jumia Nigeri, Calabar. The research design adopted for this study was the cross-sectional survey research design. The research instrument used for this study was the Structured Questionnaire. Analytical techniques comprising simple tables, percentages and simple regression in the Statistical Package for the Social Sciences (SPSS V.20.0) were used to analyze and treat the data collected.

The results obtained from the study showed that: FaceBook, Twitter and YouTube had a significant effect on consumer buying behavior towards Jumia Nigeria, Calabar. Taking the findings of this study into consideration, the following recommendations were made: Jumia Nigeria should intensify its marketing campaigns on its FaceBook platform in order to favourably influence consumer buying behavior towards its products; Jumia Nigeria should intensify its marketing campaigns on its Twitter platform in order to favourably influence consumer buying behavior towards its products; and Jumia Nigeria should intensify its marketing campaigns on its YouTube platform in order to favourably influence consumer buying behavior towards its products.


Chapter One


Introduction

1.1 Background of the Study

Kaplan and Haenlein (2010) defined Social Media as a collection of Internet-based applications that form ideological and technological fundamentals of web 2.0 that allow creation and interchange of User Generated Content (UGC). The adoption process of social media has been examined by Gunther et al (2009) using the Unified Theory of Acceptance. Social media entrepreneurship campaigns have emerged as a very important inbound internet marketing strategy. The key to using social media in a business is to understand how it can promote awareness of your products and promote sales.

Boyd and Ellison (2008), Ellison (2011), Kaplan and Haenlein (2010), Pouwelse (2008) and finally Trednnick (2006) documents the evolution of social media. Due to continuous evolution of the technology obviously the studies need to be rationalized in the dynamic bionetworks of social media. It has developed from isolated technology such as assimilation of email and chat by Google and currently video and voice chat, shaping photos by Flickr‟s, uploading videos by YouTube, and music networks. Due to this reverence Facebook can be termed as a hybrid social media platform offering its users capability to share photos and videos, link with friends, maintain groups, maintain and share links, browse through various services, planning holidays, seeking opinions and now a most simplified messaging service connecting users to their hand device the mobile Facebook.

Social media marketing aims at increasing website traffic or consideration through social media Trattner and Kappe (2013). The programs usually put effort into creating content that attracts attention from consumers which they share to their friends in social networks. Any account that consumers share through the Internet, for instance, web sites, social networks, instant messages and news feeds are denoted to as electronic word of mouth, on which they share about an occurrence, service experience, product used, favorite brand or preferred company Kietzmann and Canhoto (2013). Once the message binges from consumer to consumer, it actually booms because it comes from a dependable third party source, as unlike to the brand or company itself Schivinski and Dabrowski (2013). Social media has developed to be the innovative platform, gears and technology for a business to become successful Evans (2012).

In a study on Intelligent Customer Complaint System, Fead (2003) noted that there existed no appropriate methodology which allows customers to voice their opinion. He suggested that company must provide a safe and trustworthy setting on which customers can have faith in, so that if they need to protest about a problem, they can lodge their complaint without fear. People also expect to get appropriate and swift feedback. Each social media page must have this ability to estimate the onset of customer grievances as complaints solving is a fundamental part of the customer service evaluation procedure. The benefit of social media advertising is about efficiently communicating with the customer. Customer feedback, challenges, merchandise information or advertisements can be found easily in their social media page. If the customer is satisfied with the services provided, it will lead to the word of mouth marketing which will bring positive effects to the brand image.

Moghaddam (2010) shows that, new economic system acts more in virtual space and slowly, more volume of economic interaction would migrate there. Social media has a key role in digital and online marketing. As billions of consumers continue to visit social networks and platforms, more and more people go to the Internet to look or ask for advice prior to a purchasing decision. Social media is now large enough to generate nearly twice the marketing leads when compared to direct mail, telemarketing, and trade shows. In addition, its lead conversion rates are 13 percent more than the average conversion rate (Rey, 2013). Global and economic communication is an era in which space, habitant and geography is not important.

Go-Gulf (2005) a website design team based in Dubai has compiled data and designed an info-graph to show how social media is influencing businesses. It offers statistics on how to better understand the power of social media on online marketing promotions. With statistics from Sales force, Experian, and Hub spot graphic exposes that 27 percent of the entire online period is spent on social linkages, in which Facebook had 85 percent of Internet users and Twitter accounts for 49 percent of the same population. In order to show how powerful social media is to products awareness, the graphic shows that 84 percent of virtual customers are using the social platform to seek advice before they make a purchasing decision. When it comes to customer acquisition by industry, Facebook leads Consumer Goods with 73 percent of companies, Twitter is the leading Technology with 50 percent, and LinkedIn stood out in Marketing Agency with 58 percent of corporations and Professional Services with 56 percent, Technology (Software) with 50 percent, and Financial Services with 38 percent.

Hubspot (2014) has shown product awareness to be a useful intervening variable between advertising campaigns and trial for new products. Aided brand awareness is superior to unaided awareness as an intervening variable. Awareness is a series of many measures i.e. KPIs (key performance indicators) e.g. visits to the page, time spent on the page, number of shares and followers. Social media sites offer businesses the opportunity to utilize its volume economy, bestowing them with a fast increasing immense user base of potential clienteles and communications goals for free.

Ever since the introduction of social media, the marketing shaft has dramatically changed from the simple to a very complicated form Haven (2007). Refining the level of product awareness is one of the dealers‟ challenges as shown in the complex funnel. Attaining the different levels of product awareness, recognition, recall, and dominancy, brands must mark a strong association with customers. Based on the existing researches, website traffic, customer engagement and content consumption are some measures of products awareness.


1.2 Statement of the Problem

Business Wire (2012) illustrates that proper understanding of social media tools has yet to be fully achieved through a survey conducted by Constant Contact Inc. in the United Kingdom (UK) on 680 SMEs in October 2011. A number of SMEs reported that social media has a rapid effect on the growth of sales and employment rate in their enterprises. The study also sought to bridge the gap for SMEs to understand how social media are able to transform and grow them in terms of usage as marketing and communication tools, and how they can tap into the dynamism and potential social media presents.

Ambrose and Catherine (2013) found that social media tools play different roles to different SMEs and that the tools could be incorporated into different operational roles in the businesses. They found out that 23% of SME‟s in Nairobi use social media for customer relation management (CRM), 22% to sell their products, 21% to access new markets and 15% to collect data on customers. The respondents were asked to explain how the impacts they have cited above had resulted from social media. Some respondents said that new customers had grown their sales hence increased their profits. The respondents noted that the customers are able to market products indirectly as they recommend products to their friends. They also review and encourage usage of good products. The respondents also noted that social media have made communication cheaper and convenient both for the business and customers.

The study established that most SMEs in Nairobi had not fully understood and internalized the potential of social media for their businesses. Those who use social media do not optimally utilize social media tools as they use only selected few tools due to limitations emanating from technical capabilities and infrastructure. This means that businesses in Nairobi have not benefited adequately from technology and specifically social media despite its wide usage by potential customers.

The above studies did not show how managers can use the social media platform and take advantage of social media marketing to optimize products awareness in order to increase customer portfolios. They also fail to describe how to engage with the audience on a personal level and did not provide a prediction method for future analysis. This study seeks to fill these gaps and help managers emphasize on the use of social media to help small businesses increase their products awareness to make more profits. If they don‟tutilize this platform fully, they might never be able to expand their market to the unknown customers. Also due to dynamics of ICT, there is need to update these studies more often as social media platform keep on improving with new features. The current generation has also gone high tech and everything is shifting to digital platform like customers ordering online and items being delivered to their door step Max and Sylvester (2000). A good example is Jumia. The study seeks to assess the use of social media factors on consumer buying behaviourin Nigeria.


1.3 Objectives of the Study

The main objective of the study was to assess the use of strategic social media to influence consumer buying behaviour.

  1. To establish influence of cost of media usage on consumer buying behaviour.
  2. To establish influence of availability of network on consumer buying behaviour.
  3. To determine influence of business exposure on consumer buying behaviour.
  4. To determine influence of access to information on consumer buying behaviour

1.4 Research Question

The following research questions guided the study;

  1. What is the influence of cost of media usage on consumer buying behaviour?
  2. What is the influence of availability of network on consumer buying behaviour?
  3. What influence does business exposure have on consumer buying behaviour?
  4. What influence does access to social media information have on consumer buying behaviour?

1.5 Significance of the Study

Starting a small business is a challenging feat for many entrepreneurs, as they focus on creating quality services and products that will add value to the lives of their target consumers. Just like the people who operate large businesses, small business owners have to devise creative ways to grow their market share. Developing advertising ideas for small businesses comes with both advantages and disadvantages. Small businesses have significantly lower budgets than large corporations, so they allocate less money to advertising activities, which limits their visibility. While large corporations opt for glossy advertisements in national publications to reach their market, small business owners place advertisements in local publications. Social media offers these businesses a host of benefit for an alternative form of advertising campaign. Small businesses use social media networks such as Twitter, Facebook, LinkedIn and YouTube to connect with their existing and potential customers. These social networks give businesses the opportunity to build relationships with their customers by sharing tips and blog content, soliciting feedback, engaging them in trivia, sharing pictures and videos, and driving visitors to their websites. This study will aid:

Businesses – New and small firms that lack a trading record or are otherwise unable to convince traditional (cash flow based) media that there is a solid business; in knowing that social media present an alternative source of cheap and effective form for advertising their products. It allows firms to tap the new market through friends, family and referrals. Social media provides new channels for brand‟s voice and content. This is important because it simultaneously makes a business easier and more accessible for new customers, and makes you more familiar and recognizable for existing customers. For example, a frequent Twitter user could hear about your company for the first time only after stumbling upon it in a newsfeed. Or, an otherwise apathetic customer might become better acquainted with your brand after seeing your presence on multiple networks.


1.6 Scope of the Study

The focus of the study was individuals and small businesses in Nigeria that use social media to market their products. However, due to constraints of privacy of information, the study was confined to Jumia online shopping in Nigeria. They sell online and deliver to customers anywhere in the country to homes and offices. The focus was on their Facebook, Twitter and LinkedIn adverts and their followers, this is because they are the most used by the biggest percentage and are easier to operate by many people.


Chapter Five


Summary, Conclusions and Recommendations

5.1 Introduction

The chapter considers the findings of the study done with specific reference to the objectives and research questions being used as units of analysis. Data was interpreted and the results of the findings were correlated with both empirical and theoretical literature available. The conclusion relates directly to the specific objectives/ research questions. The recommendations were deduced from conclusion and discussion of the findings.


5.2 Summary

The study sought to establish the influence of strategic social media factors on products awareness. Specifically, the study considered strategic social media factors adopted by Jumia online shop. The specific objectives of the study were: To establish influence of cost of media usage on products awareness, to establish influence of availability of network on products awareness, to determine influence of business exposure on products awareness and to determine influence of access to information on products awareness.

The study was a case study of Jumia online shopping page in Nigeria where employees and members were targeted. This research relied on primary data which was collected using a semi-structured questionnaire which contained open ended and close ended questions. The questionnaires were self-administered by the researcher and two research assistants through mails

With regards to cost of media usage, the research findings revealed that social media is very affordable. However, majority of the respondents indicated that Jumia online shopping had implemented different loyalties to provide reward for loyal customers in their page this is triggered by the low cost of operating the business using social media. The findings compliment the findings of Kaplan and Haenlein (2010) and Barnes (2010) who argues that that using social media can be low cost and have higher levels of efficiency than using traditional communication methods.

The research findings revealed that Jumia network is widely available in social media and the page is easily accessible. The findings compliment the work of Olivia (2001) who contends that exchanging information, selling and buying, analyzing customer needs and monitoring competitors are easier to perform by using internet.
Further, the findings revealed that the content posted by Jumia is tailor made to meet the local needs of their customers and mobile phones are used to access the products to a great extent. The findings are supported by the findings of Berthon et al. (2012) who argued that customers now demand immediate responses with no international boundaries or consideration of time zones. Also Weber (2009) found that Electronic word of mouth (E-WOM) can be a powerful tool to promote a product, which can be used as one of the advertising tools such as recommending a product from the fan page of a brand to others who may not be aware of the brand.

Majority of the respondents also indicated that Jumia has increased prospects, leads and chances of closing more business to a great extent in their effort to create products awareness. E- Marketing in comparison to other types of marketing communication mix is faster, broader, and easier with exponential progress Thackeray (2008).


5.3 Conclusion

The objective of this study was to assess the use of strategic social media factors affecting products awareness at Jumia online shopping page. Based on previous studies, the variables under study were expected to have a positive effect on products awareness. The study findings indicate that there is a significant positive effect on products awareness as a result of adopting various strategic social media factors namely: cost of media usage, availability of network, business exposure and access to social media information.

This concurs with the findings of Cheung (2008) who argues that 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.

Elsewhere Pitta and Fowler (2005) argues that online advertisement works very quickly given the fact that the day that one gets started is the 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 marketing promotion on a number of social media channels. It can therefore be concluded that adoption of strategic social media factors under study significantly affects products awareness of a business.


5.4 Recommendations

This study is a justification that social media platform have a significant positive effect on products awareness of business. With due regard to the ever increasing desire to have high customer satisfaction in the businesses in Nigeria today, Technology has significantly improved the ways of communication systems. Social media has made it more convenient and cost effective. Businesses have been impacted due to this phenomenon and marketers are keenly monitoring and exploring means to gain benefits through these innovative communications. Specifically the study recommends the following:

  1. Managers of the business to employ social media monitoring tools to manage social media adequately to cater for social media consumers. This will go a long way in enhancing customers‟ access to information as indicated in the findings that reveal a very strong relationship between access to social media information and products awareness.
  2. The management of Jumia to consider scheduling their posts at the right time in order to have captive audience, when they are likely to be available in the network especially the busy professionals as indicated in the positive relationship between availability of networks and products awareness.
  3. Take advantage of the cost effective platform of social media to invite their audience to share their thoughts and engage with the brand as found out in the study.
  4. Consider concentrating on improving their mobile apps to expose the business more to different customer segments in order to address the rising demands for their products as indicated by the positive relationship between business exposure and products awareness.
  5. Increase brand awareness by interacting and knowing their audience on their terms and making engagement easy and attractive, this will drive more sales and revenue as found out in the study.

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