The Impact Of Social Media On Consumer Buying Behaviour Of Consumable Products (A Study Of Dangote Group Products)

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The Impact Of Social Media On Consumer Buying Behaviour Of Consumable Products (A Study Of Dangote Group Products)


Abstract


This study was carried out to examine the impact of social media on consumer buying behaviour of consumable products using Dangote Group Products as a case study. The study was specifically set to find out the extent social media has a significant influence on consumers, ascertain whether social media increases consumers awareness of Dangote Group of Products, investigate whether social media has a significant impact on consumers purchase decision and ascertain whether social media channels has a significant impact on consumers consumption pattern of Dangote Group of Products. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprise of employees of Dangote industry, Lagos State. In determining the sample size, the researcher conveniently selected 119 respondents while 110 were received and 100 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables and percentage, while the hypotheses was tested using Chi-square statistical tool. The result of the findings reveals that the extent social media has a significant influence on consumers is high. Furthermore, the study showed that social media channels has a significant impact on consumers consumption pattern of Dangote Group of Products. The study recommends that companies can be more connected with customers through Social media because the brands can communicate with them regularly and help or guide them to make a better purchase decision. To mention but a few.


Table of Content


Chapter One:

Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objective of the Study
  • 1.4 Research Questions
  • 1.5 Research Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Scope of the Study
  • 1.8 Limitation of the Study
  • 1.9 Definition of Terms
  • 1.10 Organization of the Study

Chapter Two:

Review of Literature

  • 2.1 Conceptual Framework
  • 2.2 Theoretical Framework
  • 2.3 Empirical Review

Chapter Three:

Research Methodology

  • 3.1 Research Design
  • 3.2 Population of the Study
  • 3.3 Sample Size Determination
  • 3.4 Sample Size Selection Technique and Procedure
  • 3.5 Research Instrument and Administration
  • 3.6 Method of Data Collection
  • 3.7 Method of Data Analysis
  • 3.8 Validity of the Study
  • 3.9 Reliability of the Study
  • 3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

  • 4.1 Data Presentation
  • 4.2 Analysis of Data
  • 4.3 Answering Research Questions
  • 4.4 Test of Hypotheses

Chapter Five:

Summary, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • References
  • APPENDIX
  • QUESTIONNAIRE

Chapter One


Introduction

1.1 Background to the Study

The advancement in the internet in recent years has increased the options available to businesses today; the social media platforms being a good example (Boulianne, 2009). It is no secret that the general availability of the internet has given individuals the opportunity to use online platforms as mediums of communication, from email to Twitter and Facebook, which has led to business interactions without the need for physical meetings (Picard & Robert, 2011). Furthermore, as part of the growth the internet experienced, the social media platform has become a major communication channel. The online world has become a new vehicle for social communication that has connected people to different online communities. Paquette (2013) reckons that the social media community has grown to more than 12.5% of the entire world population. This has presented another communication channel for various businesses and brands today.

The term social media can be defined as a range of tools and services that facilitate direct user interaction online. Social media are web based services which are otherwise called “social networking Sites” (Miller, 2016). Social media refers to a network of connections and communications among various gatherings or people (Kaplan, 2010). Stelzner, (2016) defined social media as a platform that was centered on the concept of a read and write web, where the audience and users are past the passive viewing of web content and move on to actually contributing to the content. In simple terms, social media covers anything that makes use of the Internet to enable conversations and most often take the form of social networking sites, blogs, and Wikis (Celine, 2012). Furthermore, Chaffey (2016) defined a social network site as an online service that permits users to create and modify a profile, either public or semi-private, accumulate a list of connections, as well as view the list of their connections and others utilizing the services. Social Media (SM) refer to network of relationships and interactions among different users (groups or individuals) (Kempe & Chin, 2003). Social media platforms include popular networking sites like the Facebook and Twitter as well as bookmaking sites like Reddit (Ashley, 2015). Online communities and social networking sites are an Impactive web technology for social interactions and sharing information (Lu & Hsiao, 2010). Social Media such as Facebook, Instagram and Twitter enable users to maintain great connections among themselves as well with others by achieving more than one task and facilitating the way of communicating and sharing different information (comments, thoughts, videos and images) (Kietzmann, 2011).

One of the important contributions of social media is in the way it has changed the method of communication between consumers and marketers (Hennig-Thurau, Gwinner, Walsh & Gremler, 2004). Informational society has always had a significant influence on consumer buying decision and product evaluation, however, with the advent of social media, a new channel to acquire product information has been provided which allows peer communication (Kozinets, 2009). Today’s consumers have access to many different sources of information and experiences, which have been facilitated by other customers’ information and recommendations (Senecal & Nantel 2004). This is an important point as customer involvement through social media is a key factor in marketing (Do-Hyung, Jumin & Ingoo, 2007).

Furthermore, Social networking sites have taken centre-stage in the development of e-commerce in the current environment where consumers make social connections and participate in cyberspace (Miller, 2010). Similarly, social media offers different values to firms, such as enhanced brand popularity, facilitating word-of-mouth communication, increasing sales, sharing information in a business context and generating social support for consumers (Ali, Ballantine &Stephenson, 2011). In addition, the networking of individuals through social media provides shared values, leading to a positive impact on trust (Wu, Chen &Chung, 2010). Today, with the expansion of social media and social networking sites (SNSs), a study of consumer behaviour on these platforms is a research agenda because social media is likely to develop marketing strategies in firms that will affect the customers’ intention to buy their products and services. Therefore, this research will aim to examine how social media has affected consumer buying behavior.


1.2 Statement of the Problem

The introduction of the Internet has changed the way organizations promote their products and services as well as the channels of communication between them and their customers (Miller, 2010). Therefore, the promotional focus of some organizations is shifting from the conventional mass media advert style to a more digital approach online. Social media is one of the digital platforms available to businesses to market their products. However, despite the fact that social media marketing is fast advancing across the global marketplace, there have been studies that have questioned its Impactiveness as a marketing tool in influencing consumer behavior (DiStaso, McCorkindale, & Wright, 2011).

Furthermore, there have been studies that show that regular mass media channels are beginning to lose viewership. According to Hutton and Fosdick (2017), every year, the percentage of viewership of younger audiences drops by 13%. Furthermore, Boulianne (2015) noted that viewing by 4 to 15-year-olds has tumbled by 22% and viewing among 16 to 34-year-olds is down 15%. This shift is taking place because of the rise of online media content and social media channels such as Facebook, Twitter, YouTube, Instagram e.t.c. Therefore many scholars (Bond, Farriss & Jones, 2009; Kramer, Marlow, Settle, & Fowler, 2012; Picard, 2011) have suggested that using mass media channels is not an Impactive platform for marketing products and services. However, the dilemma remain are social media channels more Impactive and if they are do they significantly shape consumption patterns.

Also, the use of social media channels by companies has given them a platform to spread the awareness of new and existing products or services among consumers. According to Furlow (2016), 95% online adults aged 18-34 are most likely follow a brand via social networking. However, while this is impressive, the problem remains how Impactive social media awareness can trigger referrals and product trials among the consumers.

Furthermore, one of the advantages that social media gives businesses today is the ability to engage personally with a customer or consumer. The use social media messengers today allow the companies and their customers to interact one on one giving the companies rare personal access to their customers’ lifestyle and perception of their product. According to Jahn & Kunz (2016) 33% of social media users prefer to contact brands using social media rather than the telephone. This shows social media is fast becoming an Impactive customer service tool. However, there is a need to understand if this communication strategy is Impactive in convincing customers and consumers to repeatedly purchase products and services.

It is against this background that this study needs to be carried out in order to determine the rate at which social media affects the buying behavior of consumers using Dangote Group Products as a case study.


1.3 Objectives of the Study

The main objective of this study is to investigate the impacts of social media on consumer buying behavior of Dangote Group Products.

Other specific objectives are to:

  1. Find out the extent social media has a significant influence on consumers.
  2. Ascertain whether social media increases consumers awareness of Dangote Group of Products.
  3. Investigate whether social media channels has a significant impact on consumers purchase decision.
  4. Ascertain whether social media has a significant impact on consumers consumption pattern of Dangote Group of Products.

1.4 Research Questions

The research will seek to answer the following questions:

  1. What is the extent social media has a significant influence on consumers?
  2. Does social media increases consumers awareness of Dangote Group of Products?
  3. Does social media has a significant impact on consumers purchase decision?
  4. Does social media channels has a significant impact on consumers consumption pattern of Dangote Group of Products?

1.5 Research Hypotheses

The following hypotheses are formulated for testing:

  • Ho: Social media channels do not have any Impact on consumers consumption pattern of Dangote Group of Products.
  • Ha: Social media channels has a significant impact on consumers consumption pattern of Dangote Group of Products.

1.6 Significance of the Study

The study will be significant to Management of business organizations in showing the importance of a veritable social media presence aimed at convincing consumers about their product quality.

The study will be significant to Industries by allowing them understand the importance of marketing through social media sites and building consumer trust therein which instigates their preference before buying products. This in turn would increase brand loyalty as well as increase profitability.

This research will help the Government to take a deeper look at the regulatory bodies whom should continually check the practices of organizations online for unethical behaviors. This research would help the government to address issues of sub-standard, fake and adulterated products in the marketplace consumed by Nigerians.

The study will be beneficial to society as it will educate consumers on the indicators that affect their choices especially the mediums to use and the impact of the clout of online followers on their tastes and preferences when buying products. This research will also help consumers understand the need to consider usefulness and needs in relation to their satisfaction before buying products.


1.7 Scope of the Study

This study focuses on the impact of social media on consumer buying behaviour of consumable products (a study of Dangote group products).The study will by extension delve into finding out the extent social media has a significant influence on consumers, ascertaining whether social media increases consumers awareness of Dangote Group of Products, investigating whether social media has a significant impact on consumers purchase decision and ascertaining whether social media has a significant impact on consumers consumption pattern of Dangote Group of Products. This study will be obtained from Dangote industries, Lagos State.


1.8 Limitations of the Study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. However, the researcher were able to manage these just to ensure the success of this study.

Moreover, the case study method utilized in the study posed some challenges to the investigator including the possibility of biases and poor judgment of issues. However, the investigator relied on respect for the general principles of procedures, justice, fairness, objectivity in observation and recording, and weighing of evidence to overcome the challenges.


1.9 Definition of Terms

Consumers:

Consumers are people who buy products and services provided by the producers. (Business Dictionary, 2017)

Consumer Behaviour:

The study of how, where, when and why people buy, use and get rid of products and services. (Business Dictionary, 2017)

Consumer Buying Behavior:

The process by which individuals search for, select, purchase, use and dispose of goods and services, in satisfaction of their needs and wants (Hershey & Blanchard, 2017).

Consumer Decision Making:

The processes, by which consumers identify their needs, collect information, evaluate alternatives and make the purchase decision (Hershey & Blanchard, 2017)

Social Media:

Internet or cellular phone based applications and tools used to share information among people. It involves blogging and forums and any aspect of an interactive presence which allows individuals the ability to engage in conversations with one another often (Hershey & Blanchard, 2017).

Economic Factors:

A consideration regarding how a consumer’s disposable income and other financial resources tend to impact their buying activities (Hershey & Blanchard, 2017).

Socio Cultural Factors:

A set of beliefs, customs, practices and behavior that exists within a population (Hershey & Blanchard, 2017).


1.10 Organization of the Studies

The study is categorized into five chapters. The first chapter presents the background of the study, statement of the problem, objective of the study, research questions and hypothesis, the significance of the study, scope/limitations of the study, and definition of terms. The chapter two covers the review of literature with emphasis on conceptual framework, theoretical framework, and empirical review. Likewise, the chapter three which is the research methodology, specifically covers the research design, population of the study, sample size determination, sample size, and selection technique and procedure, research instrument and administration, method of data collection, method of data analysis, validity and reliability of the study, and ethical consideration. The second to last chapter being the chapter four presents the data presentation and analysis, while the last chapter(chapter five) contains the summary, conclusion and recommendation.


Chapter Five


Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings on the impact of social media on consumer buying behaviour of consumable products using Dangote, Lagos State as a case study. The chapter consists of summary of the study, conclusions, and recommendations.


5.2 Summary of the Study

In this study, our focus was onthe impact of social media on consumer buying behaviour of consumable products using Dangote, Lagos State as a case study.The study was specifically set to find out the extent social media has a significant influence on consumers, ascertain whether social media increases consumers awareness of Dangote Group of Products, investigate whether social media has a significant impact on consumers purchase decision and ascertain whether social media channels has a significant impact on consumers consumption pattern of Dangote Group of Products.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 100 responses were validated from the enrolled participants where all respondent were employees of Dangote Group of Products, Lagos State.


5.3 Conclusions

In the light of the analysis carried out, the following conclusions were drawn.

  1. The extent social media has a significant influence on consumers is high.
  2. Social media increases consumers awareness of Dangote Group of Products.
  3. Social media has a significant impact on consumers purchase decision.
  4. Social media channels has a significant impact on consumers consumption pattern of Dangote Group of Products.

5.4 Recommendation

Based on the findings the researcher recommends that;

  1. Companies should give more importance to Social media marketing. Their presence on Social media can give them more visibility and it can also increase the brand value that will lead to more customer loyalty and customer lifetime value.
  2. Companies can be more connected with customers through Social media because the brands can communicate with them regularly and help or guide them to make a better purchase decision.
  3. Companies can use Social media more frequently to draw the consumer attention and brand awareness.
  4. Brands can be more interactive with the customers and it can get more customers insights and their reviews and feedbacks to make them feel that they are a part of the brand.
  5. Brands can share more positive experience of the customers who have already used that product so that the prospects and the ones who are already planning to buy can relate themselves more.
  6. Brands need to show themselves as more influential and it should try to make the product viral on Social media.
  7. Social media influencers should be chosen wisely, they should be the one who can connect with the customers with their want and needs.

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