Influence and usage of social media on

marketing strategy

A Literature Review Proposal

Presented

by

Vikas Dubey
Gaurav Behera
Haneesh Reddy

© Copyright by Vikas Dubey,Gaurav Behera,Haneesh Reddy 2022

All Rights Reserved

1
 LITERATURE REVIEW

Introduction

In today’s technology driven world, social networking sites have become an

avenuewhere retailers can extend their marketing campaigns to a wider range of
consumers. Chi (2011,46) defines social media marketing as a “connection between
brands and consumers, [while] offering a personal channel and currency for user
centered networking and social interaction.”The tools and approaches for
communicating with customers have changed greatly with the emergence of social
media; therefore, businesses must learn how to use social media in a way that is
consistent with their business plan (Mangold and Faulds 2099). This is especially true
for companies striving to gain a competitive advantage. This review examines current
literature that focuses on a retailer’s development and use of social media as an
extension of their marketing strategy. This phenomenon has only developed within the
last decade, thus social media research has largely focused on (1) defining what it is
through the explanation of new terminology and concepts that makeup its foundations,
and (2) exploring the impact of a company’s integration of social media on consumer
behavior.
This paper begins with an explanation of terminology that defines social media
marketing, followed by a discussion of the four main themes found within current
research studies: Virtual Brand Communities, Consumers Attitudes and Motives, User
Generated Content, and Viral Advertising.Although social media marketing is a well-
researched topic, it has only been studiedthrough experimental and theoretical research;
studies never precisely describe the benefit retailers gain from this marketing tactic. In
reviewing the rich plethora of multi-disciplinary literature, it is has become clear that
studies are focusing on describing what social media marketing is as well as examining
what factors affect consumer behavior relative to social networking.
Despite the initial progress made by researchers, development in this area of study has
been limited.

2
Research needs to expand by providing a deeper understanding of the longterm
promotional gains retailers obtain from social media marketing. More formalized
studies are also needed to progress beyond theorized or predicted outcomes in order to
gain knowledge of real life applications. This review of literature touches upon the gaps
that currently exist within social media marketing research and points out the need for
future studies to explore the benefits gained by marketing on social networking sites,
especially for small retailers

2.1 History and classification of social media

MySpace and Facebook, two social networking services that were launched in 2003
and 2004, respectively,to the phrase "social mediagrowing "'s popularity.Web 2.0 was
also coined for the first time.At this moment, the internet is being used in a new way
as a platform where content is not censored ,no longer authored and published by a
single person, but is instead constantly changed by many users in an interactive and
cooperative way (Kaplan and Haenlein, 2010).Wikis, interactive blogs, and
collaborative projects were all made possible by Web 2.0.The development of user
networks, as well as the exchange of ideas, expertise, and information users
(Constantinides, 2014).(McGrath & O’Connor, 2015)
The term "user generated content" (UGC) describes media content that is made by users
created by consumers (Kaplan and Haenlein, 2010), while the OECD (2007) states that
it Ideally, they should have been developed outside of professional routines and without
a market context. The latter refers to the content creator, and the UGC's subject matter
can include (and often is) a commercial good or service that the discussion participants
offer their comments on tese ideas of Web 2.0 and UGC allow social media to be
described as a collection of internet-based programmes that expand on the conceptual
and technical underpinnings of Web 2.0 and its ability to create and share user-
generated content .(Kaplan & Haenlein, 2010)

3
Collaborative projects (Wikipedia, blogs), content communities (YouTube), social
networking (Facebook), virtual gaming worlds (World of Warcraft), and virtual social
worlds (Second Life) are some examples of social media categories(Kaplan &
Haenlein, 2010). Today, e-commerce and expert review websites like Amazon and
dpreview.com allow user-generated content (UGC). (Kaplan & Haenlein, 2010)

2.2 Social media as electronic word-of-mouth

The internet has given the 1950s-introduced idea of word-of-mouth (WOM) new life.
WOM is a "person-to-person communication," claims Arndt (1967) involving a name,
a product, or a service, between a receiver and a communicator whom the recipient
considers as non-commercial." WOM is a key information source that influences
customer purchasing decisions. attitudes toward and expectations for particular
companies, goods, and services (Maslowska et al., 2017), influencing every stage of
customer decision-making, from product selection to from selection to evaluation after
purchase, there is awareness.
Nowadays, WOM is more prominent than ever thanks to increased interconnectedness
of social media users (Kimmel and Kitchen, 2014) electronic or online word-of-mouth
(eWOM) is a type of WOM where online users rate and review various products of
goods, services, and brands on review websites (Bronner and Hoog, 2010). It's
explained as "any comments made by future, present, or previous consumers, whether
favourable or unfavourable" regarding a firm or product that is made available to a
large number of people and institutions are accessible online (Hennig-Thurau et al.,
2004).
WOM in electronic form spread in a variety of method Internet users who are also
consumers create content that is widely seen as to not be influenced by business
interests (Bronner and Hoog, 2010). Due to this trust, to collect information, people
turn to forums, blogs, and other unbiased social media outlets information to help with
buying decisions (Powers et al., 2012). Variations in the behaviour of buyers Kotler
and Armstrong (2014) divided purchasing patterns into two categories: high and low

4
involvement of the consumer and pronounced or minimal brand distinctions. The four
types of complex purchasing entails considerable risk, thus information gathering and
assessment of choices in products become more significant. Unlike dissonance-
reduction, it behaviour that carries a high risk due to the stark brand disparities and
would have the buyer going through every step of the decision-making process.
Therefore, this research focuses on complex buying situations where the influence of
social media is presumed to be most visible.(Voramontri & Klieb, 2019)

2.3 Consumer buyer behaviour

Depending on the purpose of the research, there are numerous approaches to model
consumer behaviour, but one effective strategy is the decision-process approach, which
examines the events that occur before and after a purchase, and that describe the
decision-making process (Karimi, 2013). The "behaviour patterns" of consumers could
be used to define their decision-making of customers that come before, control, and
continue the decision-making process for acquiring need-satisfying goods, concepts, or
services (Du Plessis et al., 1991). The simplicity of consumer models has varied, but
among the least complex are the economic model (where customers adhere to the
maximisation of utility and spend the psychological model (based on Maslow's
hierarchy of needs; lowest amount for maximum advantages); individuals are driven
by their greatest needs according to a hierarchy of requirements),the pavlovian learning
model (behaviour brought about by practice, learning and experience),and sociological
model (buying influenced by society or social norms). Towards the end of the 1960s,
several complex models were developed, for instance Nicosia (1966), Engelet al.
(1978) and Howard and Sheth (1969).

Occasionally, these three types are referred to as "great models" of consumer conduct.
In the decision-making process, the Nicosia (1966) model included four spheres of
action:consumer attitude formation, information evaluation and search, purchasing
behaviour, and post-purchase comments.Also included in the Howard and Sheth (1969)
model were four sets of variables: stimuli as an input; conceptions of learning and

5
perception; and consumer as an output both internal factors (behaviour, buying
decision) and external factors (social, psychological, aspects of marketing). The EBM
model, which Engel et al. (1990) later dubbed the EKB model, contains four parts:
decision stages, information processing, decision process, and information input
variables.Consumer decision-making involves five consecutive steps: need
recognition, information-seeking, alternative assessment, decision-making, and results
(post-purchase), each of which is influenced by distinctive qualities,environment-
related factorsand psychological processes. The three large models each depicted a
different step of the purchasing process, although they all their presentation and
emphasis on various elements.They were, nevertheless, criticised for being too
ambiguous, having a lot of poorly specified variables, and being very complex
relationships and a lack of evidence for the claim (Karimi, 2013).
In response, in the simpler models from the 1970s and 1980s, such as Ajzen's Theory
of Planned Behavior (TPB),introduced the Bettman model. The TPB does not discuss
how decisions are made in contrast to how the Bettman model depicts the process as a
decision tree controlled by how under the limitations of limited information, consumers
process external information. processing.(Voramontri & Klieb, 2019)

2.4 Impact of social media on consumer decisions

Several authors have recently researched how social media affects consumer behaviour,
though typically not from the perspective of the decision-making process (for
example,Chu and Kim (2011); Xie and Lee (2015)). Social networking is used by
customers for their own profit instantaneous availability of information for their
convenience (Mangold and Faulds, 2009), assisting them in making purchasing
decisions or providing information about new brands or items when where they want,
too (Powers et al., 2012). Examples are provided by Goh et al. and Gretzel, Xiang
(2010).Online customer reviews have a causal relationship to impact on consumers'

6
product selection and purchasing behaviour (Yayli and Bayram,2012). Social media
has spawned a "participatory culture" in which users connect with one another. similar
people to participate in an endless cycle of knowledge sharing, keeping track of
developments and collecting feedback and ratings on a variety of goods and services
both activities (Ashman et al., 2015). The standard of internet product reviews is best
described as based on perceived amount, informativeness, and persuasion, as well as
reviews, it has been discovered, significantly affect buyers' decision to buy intentions
(Zhou et al., 2013; Zhang et al., 2014). (Zhou et al., 2013; Zhang et al., 2014). People
believe social media to be a more compared to business communications and other
sources of information,advertisements.Constantinides (2014) asserts that there is a
broad sense of mistrust toward the mass media.As a result, people are abandoning
traditional including television,magazines, and newspapers as sources to guide their
purchases(Mangold and Faulds, 2009).
A major problem with making decisions online is information overload using social
media due to the overwhelming amount of information available, customers now suffer
from analysis paralysis, which It's challenging to navigate all the information accessible
(Powers et al., 2012). owing to bound According to rationality (Simon, 1960; Thaler
and Mullainathan, 2008), people can only process so much information at once, making
it impractical to assess every piece of information OPTION ALTERNATIVES WITH
DETAIL (KARIMI, 2013). (Voramontri & Klieb, 2019)

2.5 The gap between marketers and consumers

The literature amply supported how significant and growingly influential social media
is on consumer behaviour.However, according to McKinsey & Company (2011, p. 1),
few marketers are now interacting with customers on social media, making digital
media and online technologies an underutilised resource for businesses. Marketers
understand the value of social media in influencing consumer behaviour, and while
more businesses are now active on social media, very few of them are actively
interacting with customers. (Voramontri & Klieb, 2019)

7
 Summary of the Literature Review

Overview

There is no doubt that social media are now important sources of information for
consumers in their purchase decision-making, especially in instances of complex
buying behaviour. More and more people are turning to consumer opinions online due
to the ease of access, low cost, and the wide availability of information. Peer
recommendations on social media are viewed as an eWOM and as more trustable
sources of information when compared to advertisements and other marketer-generated
information.The conventional way that consumers make purchasing decisions has
changed as a result of the rise of social media in recent years
Through their recommendations on social media, peers, who have always been a source
of influence for consumers, are now exerting an even greater influence.Given that peer
influence can now propagate more easily, the Need Recognition stage may need to be
adjusted. Reviews and suggestions posted on social media may also have an impact on
the information search stage. Unbiased recommendations and customer experiences
with regard to the evaluation of alternatives stage may cause consumers to choose a
different brand. Since consumers tend to trust their friends more than brands, the idea
of trust seems to be quite essential.

Social Media, as previously said, also play a role in the Purchase Decision stage
considering that consumers have been able to use a wide range of comparison tools,
recommendation and reviews available on Social Media that help them to make their
purchase decision. For the last stage, consumers might use Social Media to share their
consumers’experiences.Having the option to rate and review goods, services, and
brands on social media .The other customers using social media may also be subject to
a significant impact from media.The analysis of the literature revealed that social media
appears to have an impact at various phases of the consumer's decision-making process.
However, it still appears to be unclear exactly what role social media influence had at
the various stages of the process. Social media's impact on consumers' decision-making

8
has significant ramifications for marketers.Thus, marketers must consider the
enormous influence of word-of-mouth, which enables customers to talk positively as
well as negatively about a brand. In addition, we observed that marketers should
influence
Social Media in order to identify influencers and engage with consumers. Finally the
literature review pointed out that marketers should use Social Media to engage
consumers to build trust.. However, these seem to be more advices to consumers rather
than implications arising from Social Media’s

9
 BIBLIOGRAPHY

AHMAD, M. (2018). ONLINE SHOPPING BEHAVIOR AMONG UNIVERSITY

STUDENTS: CASE STUDY OF MUST UNIVERSITY. Advances in Social
Sciences Research Journal, 5(4). https://doi.org/10.14738/assrj.54.4429
Ahmad, N. S., Musa, R., & Harun, M. H. M. (2016). The Impact of Social Media Content
Marketing (SMCM) towards Brand Health. Procedia Economics and Finance, 37.
https://doi.org/10.1016/s2212-5671(16)30133-2
Aksoy, L., & Cooil, B. (2011). A Multivariate and Latent Class Analysis of Consumer
Decision Quality Measures in an E-Service Context. SSRN Electronic Journal.
https://doi.org/10.2139/ssrn.916566
Ali, S. A. (2016). Factors Influencing Consumer Buying Behaviour: A Review.
International Journal of Interdisciplinary Studies Pune Research World, 1(1).
Andzulis, J., Panagopoulos, N. G., & Rapp, A. (2012). A review of social media and
implications for the sales process. In Journal of Personal Selling and Sales
Management (Vol. 32, Issue 3). https://doi.org/10.2753/PSS0885-3134320302
Aswini, N., Ashok, K. R., Hemalatha, S., & Balasubramaniyam, P. (2021). Consumer
Preference towards Milk Products in Tamil Nadu. Asian Journal of Agricultural
Extension, Economics & Sociology.
https://doi.org/10.9734/ajaees/2020/v38i1130470
Brennan, B., & Schafer, L. (2010). Branded! how retailers engage consumers with social
media and mobility. In Branded!: How Retailers Engage Consumers with Social
Media and Mobility. https://doi.org/10.1002/9781119200567
Chandra Verma, V. (2018). An Investigative Study of Factors Influencing Dining out in
Casual Restaurants Among Young Consumers. European Business & Management,
4(1). https://doi.org/10.11648/j.ebm.20180401.16
Clootrack. (2020). What are the 5 Factors Influencing Consumer Behavior? - Clootrack.
In 2020.
Dadhich, A., & Dixit, K. (2020). CONSUMER PERCEPTION AND BRAND
LOYALTY TOWARDS OVER THE COUNTER BRAND MEDICINES OF
MAJOR PHARMACEUTICALS COMPANIES WITH SPECIAL REFERENCE
TO RAJASTHAN. International Journal of Engineering Technologies and
Management Research, 4(9). https://doi.org/10.29121/ijetmr.v4.i9.2017.97
Duffett, R. G. (2017). Influence of social media marketing communications on young
consumers’ attitudes. Young Consumers, 18(1). https://doi.org/10.1108/YC-07-
2016-00622
Et. al., A. S. (2021). Impact of Social Media on Consumer Behaviour. Turkish Journal of
Computer and Mathematics Education (TURCOMAT), 12(5).
https://doi.org/10.17762/turcomat.v12i5.1788
Ibrahim, S. & Ganeshbabu, P. (2018). A Study on the Impact of Social Media Marketing
Trends on Digital Marketing. Shanlax International Journal of Management, 6(1).
Kaplan, A. M., & Haenlein, M. (2010). Kaplan, A. M., & Haenlein, M. (2010). Users of
the world, unite! The challenges and opportunities of Social Media. Business
Horizons. https://doi.org/10.1109/WCNC.2006.1683604

10
Maslowska, E., Malthouse, E. C., & Bernritter, S. F. (2017). The Effect of Online
Customer Reviews’ Characteristics on Sales. In Advances in Advertising Research
(Vol. VII). https://doi.org/10.1007/978-3-658-15220-8_8
McGrath, A., & O’Connor, N. (2015). Re-defining the role of the customer in social
media marketing : A formula for success. 11th Annual Tourism and Hospitality
Research in Ireland Conference (THRIC 2015).
Orzan, G., Platon, O. E., Stefănescu, C. D., & Orzan, M. (2016). Conceptual model
regarding the influence of social media marketing communication on brand trust,
brand affect and brand loyalty. Economic Computation and Economic Cybernetics
Studies and Research, 50(1).
Qazzafi, S. (2020). Factor Affecting Consumer Buying Behavior: A Conceptual Study.
IJSRD-International Journal for Scientific Research & Development|, 8(May).
Rancati, E., & Niccolo, G. (2014). Content Marketing Metrics: Theoretical aspects and
empirical evidence. European Scientific Journal, 10(34).
Sahut, J. M., Iandoli, L., & Teulon, F. (2021). The age of digital entrepreneurship. Small
Business Economics, 56(3). https://doi.org/10.1007/s11187-019-00260-8
SURENDERKUMAR, C. V. (2016). A STUDY ON IMPACT OF SOCIAL MEDIA
MARKETING ON CONSUMER BUYING BEHAVIOR WITH REFERENCE TO
THANE DISTRICT. Business Management and Strategy, 4(5).
Veselovská, L., Závadský, J., & Bartková, L. (2021). Consumer behaviour changes
during times of the covid-19 pandemic: An empirical study on slovak consumers. E
a M: Ekonomie a Management, 24(2). https://doi.org/10.15240/TUL/001/2021-2-
009
Voramontri, D., & Klieb, L. (2019). Impact of social media on consumer behaviour
Duangruthai Voramontri * and Leslie Klieb. Int. J. Information and Decision
Sciences, 11(3).
Zhang, Y., Xiao, C., & Zhou, G. (2020). Willingness to pay a price premium for energy-
saving appliances: Role of perceived value and energy efficiency labeling. Journal
of Cleaner Production, 242. https://doi.org/10.1016/j.jclepro.2019.118555

AHMAD, M. (2018). ONLINE SHOPPING BEHAVIOR AMONG UNIVERSITY

STUDENTS: CASE STUDY OF MUST UNIVERSITY. Advances in Social
Sciences Research Journal, 5(4). https://doi.org/10.14738/assrj.54.4429
Ahmad, N. S., Musa, R., & Harun, M. H. M. (2016). The Impact of Social Media Content
Marketing (SMCM) towards Brand Health. Procedia Economics and Finance, 37.
https://doi.org/10.1016/s2212-5671(16)30133-2
Aksoy, L., & Cooil, B. (2011). A Multivariate and Latent Class Analysis of Consumer
Decision Quality Measures in an E-Service Context. SSRN Electronic Journal.
https://doi.org/10.2139/ssrn.916566
Ali, S. A. (2016). Factors Influencing Consumer Buying Behaviour: A Review.
International Journal of Interdisciplinary Studies Pune Research World, 1(1).
Andzulis, J., Panagopoulos, N. G., & Rapp, A. (2012). A review of social media and
implications for the sales process. In Journal of Personal Selling and Sales
Management (Vol. 32, Issue 3). https://doi.org/10.2753/PSS0885-3134320302
Aswini, N., Ashok, K. R., Hemalatha, S., & Balasubramaniyam, P. (2021). Consumer
Preference towards Milk Products in Tamil Nadu. Asian Journal of Agricultural

11
 Extension, Economics & Sociology.
https://doi.org/10.9734/ajaees/2020/v38i1130470
Brennan, B., & Schafer, L. (2010). Branded! how retailers engage consumers with social
media and mobility. In Branded!: How Retailers Engage Consumers with Social
Media and Mobility. https://doi.org/10.1002/9781119200567
Chandra Verma, V. (2018). An Investigative Study of Factors Influencing Dining out in
Casual Restaurants Among Young Consumers. European Business & Management,
4(1). https://doi.org/10.11648/j.ebm.20180401.16
Clootrack. (2020). What are the 5 Factors Influencing Consumer Behavior? - Clootrack.
In 2020.
Dadhich, A., & Dixit, K. (2020). CONSUMER PERCEPTION AND BRAND
LOYALTY TOWARDS OVER THE COUNTER BRAND MEDICINES OF
MAJOR PHARMACEUTICALS COMPANIES WITH SPECIAL REFERENCE
TO RAJASTHAN. International Journal of Engineering Technologies and
Management Research, 4(9). https://doi.org/10.29121/ijetmr.v4.i9.2017.97
Duffett, R. G. (2017). Influence of social media marketing communications on young
consumers’ attitudes. Young Consumers, 18(1). https://doi.org/10.1108/YC-07-
2016-00622
Et. al., A. S. (2021). Impact of Social Media on Consumer Behaviour. Turkish Journal of
Computer and Mathematics Education (TURCOMAT), 12(5).
https://doi.org/10.17762/turcomat.v12i5.1788
Ibrahim, S. & Ganeshbabu, P. (2018). A Study on the Impact of Social Media Marketing
Trends on Digital Marketing. Shanlax International Journal of Management, 6(1).
Kaplan, A. M., & Haenlein, M. (2010). Kaplan, A. M., & Haenlein, M. (2010). Users of
the world, unite! The challenges and opportunities of Social Media. Business
Horizons. https://doi.org/10.1109/WCNC.2006.1683604
Maslowska, E., Malthouse, E. C., & Bernritter, S. F. (2017). The Effect of Online
Customer Reviews’ Characteristics on Sales. In Advances in Advertising Research
(Vol. VII). https://doi.org/10.1007/978-3-658-15220-8_8
McGrath, A., & O’Connor, N. (2015). Re-defining the role of the customer in social
media marketing : A formula for success. 11th Annual Tourism and Hospitality
Research in Ireland Conference (THRIC 2015).
Orzan, G., Platon, O. E., Stefănescu, C. D., & Orzan, M. (2016). Conceptual model
regarding the influence of social media marketing communication on brand trust,
brand affect and brand loyalty. Economic Computation and Economic Cybernetics
Studies and Research, 50(1).
Qazzafi, S. (2020). Factor Affecting Consumer Buying Behavior: A Conceptual Study.
IJSRD-International Journal for Scientific Research & Development|, 8(May).
Rancati, E., & Niccolo, G. (2014). Content Marketing Metrics: Theoretical aspects and
empirical evidence. European Scientific Journal, 10(34).
Sahut, J. M., Iandoli, L., & Teulon, F. (2021). The age of digital entrepreneurship. Small
Business Economics, 56(3). https://doi.org/10.1007/s11187-019-00260-8
SURENDERKUMAR, C. V. (2016). A STUDY ON IMPACT OF SOCIAL MEDIA
MARKETING ON CONSUMER BUYING BEHAVIOR WITH REFERENCE TO
THANE DISTRICT. Business Management and Strategy, 4(5).

12
Veselovská, L., Závadský, J., & Bartková, L. (2021). Consumer behaviour changes
during times of the covid-19 pandemic: An empirical study on slovak consumers. E
a M: Ekonomie a Management, 24(2). https://doi.org/10.15240/TUL/001/2021-2-
009
Voramontri, D., & Klieb, L. (2019). Impact of social media on consumer behaviour
Duangruthai Voramontri * and Leslie Klieb. Int. J. Information and Decision
Sciences, 11(3).
Zhang, Y., Xiao, C., & Zhou, G. (2020). Willingness to pay a price premium for energy-
saving appliances: Role of perceived value and energy efficiency labeling. Journal
of Cleaner Production, 242. https://doi.org/10.1016/j.jclepro.2019.118555

13