Social Media Effects on Consumer Behaviour Essay

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Introduction

Social media are a crucial part of many modern individuals’ lives. Many people in the world use social media to share their images and experiences. Most importantly, however, they utilize such platforms to present their opinions on services or products they have purchased. As a result, today, consumer behavior is closely linked to social media and the way individuals use them, which means that studying the effects of online sources on purchase intentions and decisions is vital. This paper discusses how the rise of social media is affecting current consumer behavior. The paper features sections about the aspects of consumer behavior, the relationships between customers’ trust and the growth of social media, the effects of electronic word-of-mouth (eWOM), and the significance of brand awareness. Moreover, the work addresses the data about blogging as the aspect of the rise of social media and its link to consumer behavior. The paper is based on thirteen sources on the topic; they include scholarly articles and a book on marketing.

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Consumer Behaviour

Consumer behavior can be analyzed from various perspectives; however, in this study, it will be perceived as the actions that precede and follow purchases. Tanwar (2017) and Voramontri and Klieb (2018) reveal that purchase models customers utilize unconsciously consist of several stages. They include needing recognition, information search, alternative evaluation, purchase decision, and post-purchase behavior. It is possible to say that social media can affect customer behavior at each of the presented stages. For instance, social media platforms are significant for information search, as they allow customers to read other individuals’ reviews on products, view pictures of them, and communicate with others to learn about their experiences.

Studies by Kotler and Armstrong (2014) and Tanwar (2017) correspond to this perspective. The authors note that individuals tend to perform searches through not only personal sources, such as their families, but also through commercial and public media ones, including the Internet. Notably, individuals tend to perceive online reviews as reliable and complete means of product assessment (Kotler & Armstrong 2014; Tanwar 2017). An additional benefit of social media platforms is that they allow consumers to evaluate the existing alternatives because the information about them is easily accessible.

It is vital to mention that, throughout the past centuries, different types of media have affected consumer behavior (Kotler & Armstrong 2014; Tanwar 2017). For instance, before the rise of social media, individuals could obtain information about goods and services through newspapers or radio. However, it is possible to say that the impact of these media was different from the effect of today’s social media platforms. The reason for it is that modern social media have several channels that consumers can utilize to make purchase decisions (Constantinides & Fountain 2008; Tanwar 2017). They include both company websites, images, and descriptions of products or services, and the experiences other individuals share. Some of the goals organizations may have while using these channels are improving customers’ trust and brand awareness, as well as increasing the number of positive reviews.

Trust and Social Media

One of the crucial ways in which the rise of social media is affecting customer behavior is through enhancing individuals’ trust. Companies may utilize these platforms to motivate their clients to interact with each other and share their opinions on products and services online (Tanwar 2017; Farook & Abeysekara 2016). The works by Tanwar (2017) and Farook and Abeysekara (2016) reveal that in today’s world, advertisements on television may not have such a significant impact on purchase intentions. The reason for it is that individuals tend not to trust companies and believe that they present a glorified image of their products. Instead of purchasing items or services after seeing an advertisement, customers prefer communicating with each other and sellers. Social media platforms are highly appropriate for communication, as individuals may contact organizations directly and be updated on all launches and innovations companies introduce (Tanwar 2017; Farook & Abeysekara 2016). Moreover, social media allow individuals to read reviews from worldwide consumers, which may also affect consumer behavior significantly.

The studies by Tanwar (2017) and Farook and Abeysekara (2016) agree in the argument that the growth and development of social media platforms have allowed customers to voice their opinions and concerns easily, enhancing trust. The authors note that companies cannot dictate communication terms anymore, as they are many ways in which individuals can share their opinions with each other and brands. Instead, organizations are now focused on improving their image, which requires them to participate in open dialogue with customers and be relevant in their campaigns and claims (Tanwar 2017; Farook & Abeysekara 2016). To companies, social media are open and cost-effective networks that can eliminate geographic barriers and create value together with consumers due to their flexibility, interactivity, and broad scope. Today, many organizations start to realize that the utilization of social media can help them to gain individuals’ commitment and trust. Therefore, companies have started to utilize tools to improve consumer behavior and increase trusts, such as eWOM, blogs, and measures to enhance brand awareness.

EWOM

One of the other ways in which the rise of social media is affecting current consumer behavior is through eWOM. The development of social media has contributed to the importance and progress of eWOM. The definition of eWOM is similar to the one of word-of-mouth, which is a person-to-person communication about a brand, a service, or a product (Tariq et al. 2016; Reimer & Benkenstein 2016). The difference, however, is in the fact that eWOM is focused on the means of electronic communication, such as social media websites and platforms. EWOM is a highly influential marketing instrument as today, consumers have an opportunity to search for information posted by previous customers before purchasing services or products (Erkan & Evans 2016; Bao & Chang 2016). Erkan and Evans (2016), along with Tariq et al. (2016), report that currently, there are many platforms appropriate for eWOM, including personal blogs, review websites, discussion forums, and social media websites.

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The latter are highly significant because they not only help people to communicate but also allow brands, organizations, and opinion leaders to create and promote profiles associated with their services or products. Some social media platforms, such as those focused on visual content, are especially crucial in affecting consumer behavior, as this type of content makes eWOM more appealing to individuals (Erkan & Evans 2016). Other authors support this perspective, too; for instance, Poturak and Turkyilmaz (2018) report that companies are now utilizing social media services to enhance their capacity to connect with customers. Social media platforms allow individuals to receive recommendations from not only brands but also their friends and colleagues, and they can browse companies’ websites instantly and make a purchase.

It is vital to mention that when consumers learn about products or services through eWOM, they are highly likely to buy or order them (Lkhaasuren & Nam 2018; Tariq et al. 2017). As mentioned above, today, individuals tend not to develop an interest in products only through advertisement; they need to use several channels to find information about products (Constantinides & Fountain 2008; Tanwar 2017). EWOM can be considered one of the most accessible ones, as it is easy to find reviews on items on social media. Moreover, customers may trust each other reviews more than they trust the information companies provide. Thus, eWOM is one of the significant marketing tools that appeared with the rise of social media and can be used to affect consumer behavior.

Blogging and Consumer Behaviour

When discussing the impact of the rise of social media, it is crucial to mention blogging. Blogging has appeared because of the development of the Internet and social media platforms in particular (Navarro 2016; Tanwar 2017). Today, many blogs are used to address individuals’ opinions, life experiences, and current events. However, the development of social media has resulted in a new wave of blogging, which is review blogs. Currently, many organizations collaborate with bloggers, sending them products for reviews. Such a strategy helps companies to enhance customers’ awareness of their products and services, especially the new or emerging ones (Navarro 2016; Tanwar 2017). One of the largest social media platforms where bloggers review items are YouTube, where customers can watch videos to learn about other people’s experiences and see the reviewed items in detail.

It is possible to say that for companies, blogging is a significant benefit of the rise of social media because it can motivate individuals to purchase their products. Navarro (2016) and Tanwar (2017) agree that blogs can help consumers to find recommendations the information about current trends and spend their money wisely. In addition, blogs allow individuals to comment on the reviews and share their opinions with other followers. It is necessary to mention that, in today’s world, it has become easier for people to present their views on products and services, as all of the communication can be handled online through blogging. Moreover, blog posts may provide more information than simple reviews online, as they may feature detailed descriptions of items and many pictures in addition to other users’ comments (Navarro 2016; Tanwar 2017). Thus, consumer behavior has been affected by more factors than it had been before the development of social media, and blogging has contributed to such an outcome significantly.

Enhancing Brand Awareness

Another way in which the rise of social media affects consumer behavior is through the enhancement of brand awareness among individuals. Tariq et al. (2017) and Erkan and Evans (2016) note that in today’s world, it is evident that customers’ experiences are significant for determining marketing strategies. Before purchasing a product or service, many individuals look for information about the brand, along with other clients’ reviews, to make better decisions and avoid possible negative experiences. While researching the data about the company or its services, customers become more familiar with the brand, which means that their awareness of it enhances. Higher brand awareness, in its turn, can be associated with increased purchase intentions among customers (Tariq et al., 2017; Roy, Datta, & Basu, 2017). Tariq et al. (2017) add that social media platforms can improve brands’ image as well. Organizations can utOrganizationsatforms to motivate customers to develop an interest in their brands. They can post images of their products, discuss the benefits of items, and address how these items can affect individuals’ lives positively.

Current studies reveal that brand awareness and popularity of products contribute to customers’ purchase decisions significantly. For instance, Bao and Chang (2016) and Tariq et al. (2017) report that consumers social media may increase the popularity of products and services among individuals, which may increase sales and enhance product satisfaction. Roy, Datta, and Basu (2017) agree with this perspective and add that review recurrence is particularly crucial for improving brand awareness. It means that when individuals see a review on a particular brand, product, or service often, they are likely to have a higher loyalty to them. Thus, improving consumers’ awareness is highly crucial for organizations, and social media is a significant tool for doing it.

Conclusion

The paper presents a discussion on how the rise and development of social media have affected consumer behavior in today’s world. The report addresses the aspects of consumer behavior and notes that customers utilize purchase models unintentionally; social media can affect individuals’ decisions on each step of these models. The paper discusses the significance of trust as one of the most crucial aspects of purchase intentions and reveals that today, individuals tend to develop trust not through advertisements but through reviews online, which means that social media platforms affect their behaviors highly. Moreover, the paper addresses eWOM and blogging as crucial tools for online communication that allows consumers to share their experiences with products and services and find the data they may need to make purchase decisions. The report also shows that brand awareness is vital for improving consumer behavior; social media can help companies to enhance awareness among individuals significantly. The paper reveals that the rise of social media shapes consumer behavior and is beneficial for many companies.

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Reference List

Bao, TT & Chang, TLS 2016, ‘The product and timing effects of eWOM in viral marketing’, International Journal of Business, vol. 21, no. 2, pp. 99-111.

Constantinides, E & Fountain, SJ 2008, ‘Web 2.0: conceptual foundations and marketing issues’, Journal of Direct, Data and Digital Marketing Practice, vol. 9, no. 3, pp. 231-244.

Erkan, I & Evans, C 2016, ‘The influence of eWOM in social media on consumers’ purchase intentions, I: an extended approach to information adoption’, Computers in Human Behavior, vol. 61, pp. 47-55.

Farook, FS & Abeysekara, N 2016, ‘Influence of social media marketing on customer engagement’, International Journal of Business Management Invention, vol. 5, no. 12, pp. 115-125.

Kotler, P & Armstrong, G 2014, Principles of Marketing, 15th edn, Pearson Education, London.

Lkhaasuren, M & Nam, KD 2018, ‘The effect of electronic word of mouth (eWOM) on purchase intention on Korean cosmetic products in the Mongolian market’, Journal of International Trade & Commerce, vol. 14, no. 4, 161-175.

Navarro, GM 2016, ‘The influence of blogs in fashion in consumer behavior: an exploratory approach’, Vivat Academia, vol. 19, no. 135, pp. 85-109.

Poturak, M & Turkyilmaz, M 2018, ‘The impact of eWOM in social media on consumer purchase decisions: a comparative study between Romanian and Bosnian consumers’, Management and Economics Review, vol. 3, no. 2, pp. 138-160.

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Reimer, T & Benkenstein, M 2016, ‘Altruistic eWOM marketing: more than an alternative to monetary incentives’, Journal of Retailing and Consumer Services, vol. 31, pp. 323-333.

Roy, G, Datta, B, & Basu, R 2017, ‘Effect of eWOM valence on online retail sales’, Global Business Review, vol. 18, no. 1, pp. 198-209.

Tanwar, A 2017, ‘Impact of social media on consumer behaviour’, International Journal of Research, vol. 4, no. 6, pp. 1205-1215.

Tariq, Abbas, Abrar, M & Iqbal, A 2017, ‘EWOM and brand awareness impact on consumer purchase intention: mediating role of brand image’, Pakistan Administrative Review, vol. 1, no. 1, pp. 84-102.

Voramontri, D & Klieb, L 2018, ‘Impact of social media on consumer behaviour’, International Journal of Information and Decision Sciences, vol. 462, pp. 1-24.

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IvyPanda. 2021. "Social Media Effects on Consumer Behaviour." July 31, 2021. https://ivypanda.com/essays/social-media-effects-on-consumer-behaviour/.

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IvyPanda. "Social Media Effects on Consumer Behaviour." July 31, 2021. https://ivypanda.com/essays/social-media-effects-on-consumer-behaviour/.

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