A Project Report

On

“A Study on Impact of Social Media Marketing on Consumer Buying

Behavior towards E- Commerce Websites in Nagpur City”
(PUT YOUR TITLE HERE)

Submitted to

R.T.M. Nagpur University, Nagpur

In Partial fulfillment of M.Com. Sem III Examination

Submitted by
(STUDENT NAME)
Batch: 2024-25

Under the guidance of

Name of Guide
Designation

Name of Co-Guide
Designation

2024-2025
L.A.D. & Smt. R.P. College for Women, Nagpur
 L.A.D. & Smt. R.P. College for Women, Nagpur

CERTIFICATE

This is to certify that Miss. (Name of Student) is a bonafide student of Master of Commerce
(M.Com.) in the session 2024-2025 of L.A.D. & Smt. R.P. College for Women, Nagpur.

The candidate has worked under the supervision of Dr. (Name of Guide) & (Name of Co-Guide)
and has satisfactorily finished the project work in this academic session. The project submitted
by her is her own work and is complete so as to warrant its permission for examination.

A project work entitled “(Title of the project)”, which is in partial fulfillment for the above
course and is being forwarded to Nagpur University for examination.

PROJECT GUIDE PRINCIPAL

(NAME OF GUIDE) DR. POOJA PATHAK

CO-GUIDE
(NAME OF CO-GUIDE)
 DECLARATION

The project entitled “(Title of the project)”, submitted to Rashtrasant Tukadoji Maharaj Nagpur
University, Nagpur in the discipline of commerce has been completed under the guidance of Dr.
(Name & Designation of Guide) & (Name & Designation of Co-Guide), at L.A.D. & Smt. R.P.
College for Women, Nagpur. This study has been an outcome of my own efforts and not
submitted either in part or in whole to any other university for any other degree.

Miss. (Name of Student)

Place: Nagpur (M.Com Semester III)
 ACKNOWLEDGEMENT

I, the Researcher take this opportunity to express my gratitude to all those involved in the
preparation and completion of the research activity. I express my deep sense of gratitude to
Dr. Pooja Pathak, Principal, L.A.D. & Smt. R.P. College for Women, Nagpur, my project guide
Dr. (Name & Designation of Guide) & my co- guide (Name & Designation of Co-Guide),
L.A.D. & Smt. R.P. College for Women, Nagpur. Their endeavor for perfection, foresight and
innovation helped me in completing this project within the stipulated time.

I am thankful to -------- (add the names you want to thank)

I am also thankful to all the respondents for helping me in accessing the necessary
information for the study.

At last, I would like to thank my parents and friends, who stood supportive at every stage to
save loss of time, effort and money.

Miss. (Name of Student)

Place: Nagpur (M.Com Semester III)
 INDEX

SR CHAPTERS PAGE

NO. NOS.

1. INTRODUCTION
1.1 Introduction
1.2 Company Profile

2. REVIEW OF LITERATURE

3. RESEARCH METHODOLOGY

4. DATA ANALYSIS & INTERPRETATION

5. FINDINGS & CONCLUSION

6. SUGGESTIONS

BIBLIOGRAPHY

ANNEXURE
 CHAPTER – 1
INTRODUCTION
1.1 INTRODUCTION

Social media marketing (SMM) refers to techniques that target social networks and applications
to spread brand awareness or promote particular products. Social media marketing is perceived
as a more targeted type of advertising and is therefore believed to be very effective in creating
brand awareness. Social media presence is a necessity for many customer-driven enterprises as it
gives the impression of a more immediate connection between the customer and the seller.
Moreover, campaigns spread through social media are believed to have more resonance because
they are usually discovered through links shared by trusted sources. The rich data available
through social media can allow advertisers to target their message to very specific audiences,
providing the potential for better results. Social Media Marketing allows individuals, businesses
and other organizations to interact with one another and build relationships and communities
online. When companies join these social channels, consumers can interact with them directly.
That interaction can be more personal to users than traditional methods of outbound
marketing and advertising. Social networking sites act as word of mouth or more precisely, E-
word of mouth. The Internet's ability to reach billions across the globe has given online word of
mouth a powerful voice and far reach. The ability to rapidly change buying patterns and product
or service acquisition and activity to a growing number of consumers is defined as an influence
network.Social networking websites are based on building virtual communities that allow
consumers to express their needs, wants and values, online. Social media marketing then
connects these consumers and audiences to businesses that share the same needs, wants, and
values. Through social networking sites, companies can keep in touch with individual followers.
This personal interaction can instill a feeling of loyalty into followers and potential customers.
Also, by choosing whom to follow on these sites, products can reach a very narrow target
audience. Social networking sites also include much information about what products and
services prospective clients might be interested in. Through the use of new semantic analysis
technologies, marketers can detect buying signals, such as content shared by people and
questions posted online. An understanding of buying signals can help sales people target relevant
prospects and marketers run micro-targeted campaigns.In 2017, over 85% of business executives
identified social media as an integral part of their business.Business retailers have seen 133%
increases in their revenues from social media marketing.The increasing presence of social media
in India gives an active advantage to marketers to attract consumers through advertisements, still
the Indian consumers perception towards these advertisements remain unexplored. Sharing news,
photos, experiences and opinions on social media and being affected by them represents a quite
natural process for a great number of people. Through the years, social media studies and
research have increased interest in the web. In fact, the Internet is studied as a source of data
about society and culture. Social media is characterized by invisible codes which enable a type of
ubiquitous connectivity. All one needs is internet connection to interact with others and to share
information. Social media such as Facebook, Twitter and YouTube are dynamic tools that
facilitate online relationships. It is a relatively low cost firm of marketing and allows
organizations to engage in direct and end -user contact. Given the choices made available to
consumers and the influential role of social media marketing, the brands and consumers have a
changing role to play in the organization’s strategy in that they now have an economic impact.
Brands influence customer choice and these customers influence other customers. These changes
of events affect repurchases, which further affect future earning and long term organization
sustainability. So, after the introduction or emergence of social media, each and every
organization started to perform their marketing activities on those social media websites which
are frequently used by the people due to the advent of technological advancements and
internet.Social media advertising is a new version of corporate advertising which has been
adopted as new techniques by many companies. Both two way communication and customized
advertising are factors which maximize the effect of brand trust on customer’s
perceptions.Information Technology’s advancements are revolutionizing every business and
firms. In today’s scenario, the world is witnessing the phenomenon where online networks
became the bridge for global interactions through “sharing” and “following”. Within the past few
years, the phenomenon of social media on the internet has detonated into the main stream.
Further, this online information and data within Social media Networking Web sites (SNW) have
begun to be used for purposes beyond its intended use of just social interaction. In the following
decade with the growth of Web 2.0 technologies and rising online communications, communities
moved to begin its largest engagement of interactions through social media such as forums,
wikis, blogs, twitter, social networking websites like Facebook, Whatsapp and video hosting
sites like YouTube, Hotstar, Amazon Prime etc. Social media has quickly changed today‘s
marketing approach, and given the marketer connection between brands and consumers with new
possibilities and opportunities to increase brand awareness for consumers.

INFLUENCE OF FACEBOOK MARKETING ON CONSUMER BEHAVIOR

Consumer behavior is the study of individuals, groups, or organizations and the processes they
use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and
the impacts that these processes have on the consumer and society. It blends elements from
psychology, sociology, social anthropology and economics. It attempts to understand the
decision-making processes of buyers, both individually and in groups. It studies characteristics of
individual consumers such as demographics and behavioral variables in an attempt to understand
people's wants. It also tries to assess influences on the consumer from groups such as family,
friends, reference groups, and society in general. In a consumer buying behavior, the customer
plays three distinct roles of user, payer and buyer. Consumer behavior is very difficult to predict,
even for experts in the field. It is influenced by internal conditions such as demographics,
psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs, and feelings.
Psychological factors include an individual’s motivation, perception, attitude and belief, while
personal factors include income level, personality, age, occupation and lifestyle. Behavior can
also be affected by external influences, such as culture, sub-culture, locality, royalty, ethnicity,
and family, social class, past experience reference groups, lifestyle, and market mix factors.
Facebook advertisement is the effective source to emotionally motivate customers towards
buying the advertised products. Facebook advertising influences liking of products and attitude
towards brand. Attitude-towards-the –ad, is a well-known theory of advertising. Attitude towards
the ad theory is influencing consumers’ feelings towards brand that leads to purchase intent.
Consumer buying behavior is laid on the perceptions’ that they will decide to. Advertising is
done with the aim to influence consumers’ feelings toward brand, increasing sales and to create a
positive emotional response to advertisement. Therefore, the basic goals of advertisement are to
encourage purchase action and create awareness. With billions of active people, Facebook
provides a great opportunity for marketers to reach customers all over the world. Marketers
quickly realize the value of brand promotion by using Facebook. Why not market the business to
billions of people? What’s more, it is free to build a Facebook page. A lot of renowned
companies are attracted to promote their brands on Facebook, such as Amazon, Samsung,
Flipkart, Nike, Myntra, Snapdeal, Craftsvilla, E-bay and so on. They carry out marketing
campaigns by leveraging Facebook’s features. Effective marketing strategies help them build an
engagement with current customers and attract potential customers. Facebook is a platform
which satisfies marketer’s needs to take part in a conversation with customers. It provides an
open and transparent circumstance where information can flow freely between consumers and
marketers. Being one of the largest social media platforms, it provides insight into its users’
interests, likes, dislikes, personal life and buying behavior. This large database of information
can be tapped into by the business or organization to generate high quality leads, sales enquiries
and traffic to your website. Facebook pages assist businesses, brands and organizations in
sharing information and reaching out to people. Users like the pages that they are interested in.
With this, they can stay in touch and get updates about different activities. There are a number of
ways brands can use Facebook marketing to benefit their marketing efforts. The use of Facebook
marketing in the digital era not only allows for brands to market their products and services, but
also allows for online customer support through 24/7 services to make customers feel supported
and valued. The use of Facebook media interaction allows brands to receive both positive and
negative feedback from their customers as well as determining what media platforms work well
for them. As such, Facebook marketing has become an increased advantage for brands and
businesses. Word of mouth communications and peer-to-peer dialogue often have a greater effect
on customers, since they are not sent directly from the company and are therefore not planned.
Customers are more likely to trust other customers’ experiences. It is increasingly advantageous
for companies to use social media platforms like Facebook to connect with their customers and
create these dialogues and discussions. Facebook is type of social media, where people with
common interest shares their ideas and comments in a virtual environment (Weber, 2009).
Facebook advertising enables customers to share their experience, ideas, interest and useful
information about a brand. Facebook advertising is useful in the sense that it is interactively
helpful in collecting feedback and demographic information of targeted customers. In current
business environment, Facebook advertising is an effective source to reach targeted customers.
Facebook advertising provides the opportunity to build up your brand and engages with
customers on a large social network.

Facebook advertising is done to create likeness, attraction and influence buying behavior in
positive way. Attitude-towards-the ads, is an interesting theory of advertising often used to
understand the buying behavior. Effective advertisement influences the attitude towards brand
and finally leads to purchase intention. Ideally, consumers buying behavior is the products
purchase decision. Social media particularly Facebook has become a marketing channel to reach
target market. According to a study, “Expand your Brand Community Online” social media has
become a significant marketing channel to reach directly targeted customers and engages them
with company brands .The leading brands have collected consumers on a single platform (i.e.
Facebook) and keep them updated at lower cost. According to Lukka and James (2014)
Facebook is an effective source to market your products in a personal way. Facebook has
enabled marketers to customize their advertisements for a specific group of people. Marketers
target these individual on the basis of demographic information’s and mutual interest. Facebook
has made it possible to reach these targeted people in cost effective and interesting way instead
of traditional marketing channels. Facebook advertisers are using different techniques to
effectively convey commercial messages to create purchase decision. Facebook offers better
“smart advertising” option that has enabled advertisers to customize all the facts in their ads for
viewers corresponding.
1.2 COMPANY PROFILE: FACEBOOK

Facebook is the world’s largest social network service. Users can create a personal
profile, add other users as friends, exchange messages, and keep in touch with friends, family
and colleagues. It connects those with shared interests across political, economic and geographic
borders. In February 2004, Mark Zuckerberg, with the help of Andrew McCollum
and Eduardo Saverin, launched a website that would change online social interaction forever.
The Facebook started on the campus of Harvard University, where the three friends
were students, Zuckerberg being a psychology major of all things. Within 24 hours of going live,
The Facebook was a community of 1200 Harvard University students. The Facebook buzz grew
on the Harvard campus and within weeks students from Stanford and Yale wanted in.
The network was extended and by April 2004, the Facebook was available on all Ivy
League servers. Facebook may be accessed by a large range of devices
with Internet connectivity, such as desktop, laptop and tablet computers, and smartphones. After
registering to use the site, users can create a customized profile indicating their name,
occupation, schools attended and so on. Users can add other users as friends, exchange messages,
post status updates, share photos, videos and links, use various software applications and receive
notifications of activity. Additionally, users may join common-interest user groups organized by
workplace, school, hobbies or other topics, and categorize their friends into lists. Additionally,
users can complain about or block unpleasant people. Facebook has more than 2 billion monthly
active users as of June 2017. Today it is one of the leading social media websites to connect
people. Facebook continues to be the reigning champ of social media sites, as the #1 spot where
friends connect and share online. Whether you're a big corporation or a small local
biz, Facebook is a powerful marketing tool – it's a great space to keep customers informed,
develop brand identity, and broaden the reach. The world’s most popular social networking site
Facebook has been attracting eyeballs of the marketers from almost every industry and seems to
be getting enough results to continue the marketing campaign. Facebook Marketing is simply the
practice of using Facebook as a platform to carry out the marketing activities of a company. The
gateway of this market place is the Facebook pages. With over 1.23 billion users and still
counting, Facebook has overshadowed any other social networking site that ever existed. Almost
every social media app today has an option to log in with Facebook. It is the primary social
networking site which is so influential that some people even confuse it to be the internet itself.
In such circumstances, it becomes very difficult for the marketers to ignore such an influential
network knowing that their potential audience is making use of this media on a regular basis.
There is a need for businesses to mark their online presence in order to go digital but that does
not allow us to conclude that Facebook presence is what will solve the purpose. However, there
are several perks of having the business’s products being marketed on the world famous social
media app and networking sites. At present, every smartphone includes a Facebook app in the
list of apps that are stored internally. Facebook marketing includes each and every activity that is
practiced to drive user traffic to the website or simply boost sales in general. The Facebook
marketing strategy is prepared in accordance with the functioning of the social media site unlike
the traditional practices of marketing; the strategy adopted is relatively different.Facebook isn’t
just powerful. It’s flexible. No matter what type of company you run, it has enough different
marketing options that you can tailor your marketing efforts to fit your company, your budget,
and your time constraints. Yes, it can take some time to get to know all of its features, but it’s
worth it. Facebook still is growing at a rapid pace, and every day it becomes a more
indispensable part of social media marketing.It’s also important to strike while the iron is hot.
For the moment, companies that are savvy about Facebook marketing still enjoy an early-adopter
advantage. Once more traditional marketers start transitioning into the space, competition will
increase, advertising prices will rise, and users will become much pickier.

IMPORTANCE OF FACEBOOK MARKETING

Facebook has come a long way since its humble beginning as a way for the people to connect,
being the largest social media network in the world. Today it is considered a powerful marketing
tool and an affordable, yet effective way to grow any brand. It goes without saying that it’s
important for any brand to be on Facebook. It is estimated that one out of three people
(approximately 128 million) use Facebook daily. With such high traffic volume, Facebook is a
valuable tool for advertisers. The businesses create a great impact on the minds of the people
through their facebook marketing strategy.Since Facebook was first developed in 2004, it has
grown to become the biggest social media platform on the web. As it grew in popularity, the
executives at Facebook realized the potential it held for advertising. Facebook Advertising is one
of the most popular methods of online advertising.Facebook Advertising allows businesses to
use detailed market segmentation to reach only their best customers. The design of Facebook
ads, specially the news feed ads, integrates them into the social content so well that many people
don’t realize that they are seeing advertisements. This makes viewers more receptive to the
messages as they don’t feel like they are being “sold” to.

To some entrepreneurs, Facebook marketing is the “next big thing,” a temporary yet powerful
fad that must be taken advantage of while it’s still in the spotlight. To others, it’s a buzzword
with no practical advantages and a steep, complicated learning curve. Facebook has a huge
potential for companies to increase sales and create its brand image. Here are some of the points
that elaborate the importance of Facebook marketing for the E-commerce sites-

 Growth- Facebook is improving by the day. In the last four years, the number of users
has almost doubled. The future is looking very bright. There will be more users to show
the content and advertising will likely keep getting better and cheaper. There is no
denying that Facebook is here to stay. It’s amazing to think that what started as a simple
way to stay in touch with friends has turned into a platform that connects people and
brands all across the world.

 Consumer psychology- One of the biggest advantages of Facebook (or social media in
general) is that it gives everyone a voice that will be heard. In addition to providing the
ability to share opinions on products or services, Facebook enables users to endorse
businesses within their own community by simply hitting the “Like” button. Companies
 can leverage this phenomenon and turn everyday users into brand influencers. 9 in 10
consumers take the words of their peers into account during the buying process.

 Quick feedback- In the old days, when businesses wanted to reach out their customer
base for feedback on products or services, they would have to do things like direct-mail
voting polls or cold call surveys. Luckily, those days are over and brands need to look no
further than social media. Facebook makes it easy for businesses to simply post a
question on their status and sit back and watch for the comments. Time is perhaps the
most valuable asset in business. Facebook is great for companies looking to get an
impression of their image and product quickly so they can see what works and what
doesn’t without hassle.

 Early-stage brand awareness- Facebook can work a lot like PR if managed

strategically. The Brand Awareness objective uses a combination of real-time proxy
metrics with both the reach and attention users give to a campaign to provide brands with
maximum exposure. Getting started with this early on is critical so that later campaigns
can have a bigger audience. The goal is capture attention across the board to get in front
of people most likely to be interested in any brand.

 Maximum visibility at minimum cost- Advertising on Facebook is comparatively

cheaper than on Google. Also, Facebook video views are cheaper than YouTube.
Research shows that consumers spend 90% of time spent on mobile is on apps and
Facebook leads the way as the most downloaded platform of the first half of 2017.

 Custom-targeted audience- Facebook advertising campaigns are built around (and for)
specific audiences. For this reason, the Facebook Custom Audience Tool can work
magic. This tool enables marketers to upload lists of contacts such as emails, UIDs, and
phone numbers so that they can target the customers with certain ads.
It is clear that Facebook has been a primary vehicle for brands in not only the promotion
of products but also in online transactions. One of the reasons is that Facebook allows
consumers to share and talk about the products and services they like, which influences
the purchasing decisions of their virtual friends. According to a report from Sociable
Labs, 62 percent of online shoppers have read product-related comments from their
Facebook friends, 75 percent of them have clicked on the product link to visit the
retailer’s site, and 53 percent of those who clicked go even further and buy the product. It
is clear that according to the present scenario, people spend a lot of time on social media
especially Facebook. It is one of the best platforms to market a business online. As there
are a lot of engagements in this, it paves way for enormous new opportunities to grow a
business. Facebook marketing enhances the growth of the online business to a great
extent. It enables social networking that helps online enterprises to become more focused
on their customers than ever before. Businesses are finding out what people want and
delivering those things much more quickly. Company executives believe they have more
control over their businesses' reputations on the Internet because they can influence
people's perceptions in cyberspace. This also applies to how an online company is viewed
by suppliers and as a competitor to other companies. Social networking technology can
help online businesses learn more about what their competition is doing and respond
rapidly. Customers who participate in social networks are feeling more empowered in
their interactions with E-Businesses. People are seeing businesses responding to the
opinions people post online and that makes customers feel like they're having more
influence on businesses' behavior. Facebook media can also help the businesses to
connect with millions of potential customers worldwide. Website traffic has received a
boost owing to Facebook media channels, and business sales have improved considerably
with specific marketing campaigns.
 CHAPTER – 2
REVIEW OF LITERATURE
2.0 REVIEW OF LITERATURE

A literature review can be defined as a written summary of past research that critically evaluates
specific findings that may be related to the current study's topic. Also, a literature review does
not discuss a new study. Literature reviews are important because the current researcher is
expected to create a new study based off of these previous studies in order to further the findings
and knowledge known about that area of study. A literature review is a text of a scholarly paper,
which includes the current knowledge including substantive findings, as well as theoretical and
methodological contributions to a particular topic. Literature reviews use secondary sources, and
do not report new or original experimental work. A literature review may constitute an essential
chapter of a thesis or dissertation, or may be a self-contained review of writings on a subject. In
either case, its purpose is to:

 Place each work in the context of its contribution to the understanding of the subject
under review
 Describe the relationship of each work to the others under consideration
 Identify new ways to interpret, and shed light on any gaps in, previous research
 Resolve conflicts amongst seemingly contradictory previous studies
 Identify areas of prior scholarship to prevent duplication of effort
 Point the way forward for further research
 Place one's original work (in the case of theses or dissertations) in the context of existing
literature
 The literature review itself, however, does not present new primary scholarship.

Ali, H., in his research paper, “Exchanging value within individual’s networks” (2011), stated
that, Social media offer 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.
Bagozzi, R.P. & Dholakia, U.M., in their researcher paper, “Intentional social action in
virtual communities” (2002), found that with the rise in social networks, a new era of content
creation has emerged, where individuals can easily share experiences and information with other
users. The next generation of online businesses will be based on communities - a good tool for
new customer attraction.

Bronner, F. & de Hoog, R., in their research paper “Consumer-generated versus marketer-
generated websites in consumer decision making (2010)”, found that, reviews are one of the
key areas that have emerged from social media. Customer reviews are widely available for
products and services, generating great value for both consumers and companies.

Fuller, J., Muhlbacher, H., &Matzler, K., in their research paper, “Consumer empowerment
through internet-based co-creation” (2009), stated that, by using social media, consumers can
create content and offer valuable advice to others. This new development has seen online
communities and an electronic network of individuals emerge on social platforms where
members share information globally and quickly.

Lorenzo, C., Constantinides, E., &Geurts, in their research paper, “Impact of web experience
on e-consumer responses, e-commerce and web technologies” (2007), states that, Social
media provide opportunities for businesses to become more attractive universally. Consequently,
it is important for companies to have a business model adapted to social commerce. Social
commerce is a new stream in e-commerce, which encourages the social interaction of consumers
through social media.

Wang, X., Yu, C. & Wei, Y., in their research paper, “Social media Peer communication and
impacts on purchase intentions: a consumer socialization framework (2012), opine that,
Consumer socialization occurs through social media directly by social interactions among
consumers, and indirectly by supporting product involvement. The social relationship of
consumers generated through social media significantly affects the perceived trust of consumers.
 CHAPTER – 3
RESEARCH METHODOLOGY
Research is defined as human activity based on intellectual application in the investigation of
matter. The primary aim for applied research is discovering, interpreting, and the development of
methods and systems for the advancement of human knowledge. Research refers to search for
knowledge. It is a scientific and systematic search for pertinent information on a specific topic
“Research is an organized and systematic way of finding answer to questions”. Research
methodology is a way to systematically solve the research problem. It is process used to collect
information and data for the purpose of making business decisions. The methodology may
include publication research, interviews, surveys and other research techniques, and could
include both present and historical information. Research methodology has many dimensions. It
includes not only the research methods but also considers the logic behind the methods used in
the context of the study and complains why only a particular method of technique has been used.

PROBLEM STATEMENT

Facebook is one of the most popular social networks on the internet. Utilizing Facebook for
digital marketing strategy is without doubt one of the best ways to connect and grow a social
following online. The world’s most popular social networking site Facebook has been attracting
eyeballs of the marketers from almost every industry and seems to be getting enough results to
continue the marketing campaign. Facebook Marketing is simply the practice of using Facebook
as a platform to carry out the marketing activities of a company. Through the study, the
researcher tried to explore:-

 To what extent can social media advertising be used to create a multi-way dialogue
between users and online shopping websites?
 How can Facebook advertising induce an initial set of user to purchase online?
 How effective is the Facebook Advertising as a tool for enhancing brand image and brand
equity?
NEED FOR THE STUDY

The purpose of this study was to increase the understanding of Facebook marketing within the
environment of social media. This study attempted to answer the question: “Why is it necessary
for online shopping websites to establish a presence in social media especially on Facebook?
What strategies can be developed for Facebook marketing?” The study was carried out with the
customers of various ‘online shopping sites doing Facebook marketing.’ Today almost every
educated and modern person is active on social media like Facebook. So it is pertinent that
advertising of various products on it would definitely attract the users of social media and induce
them to at least login to the E-commerce shopping sites and view the products which in few
attempts can also motivate them to buy the goods and services as well.

OBJECTIVES OF THE STUDY

The aim of this study is to determine the effectiveness of social media marketing especially
through Facebook on purchase behavior of the consumers.Besides this, the researcher tries to
find out these factors:

 To identify how social media advertising can enhance dialogue between e-commerce
sites and customers by multi-way communication.
 Identify consumer perceptions towards social media advertising approach.
 To identify how much the consumers respond, positive or negative,towards social
media advertising.

STATEMENT OF HYPOTHESIS

A hypothesis is regarded as a statement that asserts a relationship between variables. It is also

regarded as a provisional answer to the question that the investigator intends to answer through
the research mechanisms. Following Hypothesis is framed for the proposed research;

Null Hypothesis (H0): There is no significant relation between consumer purchase behavior and
Facebook marketing done by online shopping sites.
Alternate Hypothesis (H1): There is significant relation between consumer purchase behavior
and Facebook marketing done by online shopping sites.

The study is restricted to the consumers making online purchases especially through Facebook
marketing in Nagpur city. Although there are many social media options, but the Researcher is
considering only Facebook as a marketing tool for the purpose of the study.

b) Research Design
The research design will be used in this study is both ‘Descriptive’ and ‘Exploratory’

c) Sample size
A sample of 150 consumers who purchase products from online shopping sites via Facebook ads
will be taken as respondents.

d) Sampling Technique
In this research, each and every individual of Nagpur city, who purchase products from online
shopping sites via Facebook ads, will be the member of the population or universe of the study.
For the purpose of this study, Convenience sampling, a type of non-probability sampling
technique will be used to select the respondents.

e) Sources of data collection

For the purpose of the study, the Researcher will be collecting both primary data and secondary
data. Primary data will be collected in two ways. One method will be observation of the
Facebook page for E-commerce sites advertisements’ and the other one by delivering
questionnaires, both online and offline; to Facebook users who tend to buy goods online via
facebook ads. Secondary data will be availed through various books, journals, websites etc.

f) Research approach
The survey method was adopted for collected the primary data.Survey research is systematic
gathering of data from respondents throughquestionnaire.

g) Statistical Tools
Cross Tabulation will be used for the purpose of the study. A Cross Tabulation is a joint
frequency distribution of cases based on two or more categorical variables. Displaying a
distribution of cases by their values on two or more variables is known as contingency table
analysis and is one of the more commonly used analytic methods in the social sciences. The joint
frequency distribution would be analyzed using this method to conduct hypothesis testing.

1.8 LIMITATIONS OF THE STUDY

 Area of the study is restricted to Nagpur city only.

 Due to the limitation of time and resources, sample size will be of only 150 respondents.
 The study will be using some secondary data which may have some deficiencies.
 Enough care is taken in formulating the questionnaire, still some errorsmay creep in.
 Convincing the respondents to spare time for filling the questionnaire will also be a challenge
 The project is based on the survey methodology by a structured questionnaire and the
personal skills of the researcher undertaking the project may affect the results.
 The consumer behavior varies according to different products
 CHAPTER – 3
DATA ANALYSIS AND
INTERPRETATION
3.0 DATA ANALYSIS AND INTERPRETATION
For the purpose of analysis and interpretation of data, the researcher has illustrated the
responses received through questionnaires that have been sent to the respondents, online and
offline. The presentation of the data has been done in the graphical form. The responses are
elaborated as below:

Table No. 1 Gender

Gender Responses
Male 67
Female 83
Total 150

Graph No.1

Gender

Male
45%
Female
55%

The graph above shows that, nearly 55% of the respondents were females while 45%
were males who use Facebook.

This reveals that majority of the respondents were females.

 Table No. 2 - Age
Age Group Responses
18 - 30 134
31 - 50 14
50 above 2
Total 150

Graph No. 2

Age
18 - 30 31 - 50 50 above

10% 1%

89%

The graph above shows that, 89% of the respondents belonged to the age group between
18-30 years, 10% of them belonged to the group of 31-50 years. Only 1% belonged to the age
group of more than 50 years.

This reveals that majority of the respondentsbelonged to the age group of 18-30.
 Table No. 3 –Occupation

Occupation Responses
Business 11
Profession 21
Service 15
Students 97
House Wife 6
Total 150

Graph No. 3

Occupation
Business Profession Service Students House Wife

4% 7%

14%

10%

65%

The graph above shows that, 65% of the respondents were students, 14 % of them
were professionals, 10% were in service, 7% were involved in business and 4% were
housewives.

This reveals that majority of the respondents are students who are attracted towards
facebook marketing and resulting online purchases. The youth in our country have a positive
liking towards facebook and thus using this media as a tool of advertising can influence the
buying behaviour of the users.
 Table No. 4 – Frequency of Using Facebook

Options Responses
Daily 92
Few times a week 31
Few times a month 9
Rarely 18
Total 150

Graph No. 4

Frequency of using Facebook

Daily Few times a week Few times a month Rarely

12%
6%

21%
61%

The graph above shows that, nearly 61% of the respondents use facebook daily, whereas
21% use it few times a week, nearly 12% few times a month and 6% use it rarely.

This reveals that most of the respondents use facebook daily and thus it can be a very
good tool for marketing various products online. This frequency of using facebook can again be
a very important reason for choosing facebook for marketing by E-commerce websites.
 Table No. 5 - Frequency of Online purchases via Facebook

Options Responses
Frequently 13
Sometimes 92
Rarely 45
Total 150

Graph No. 5

Frequency of online purchase via Facebook

marketing

Frequenty Sometimes Rarely

9%
30%

61%

The graph above shows that, nearly 61% of the respondents have made frequent
purchases via Facebook marketing, 92% have made purchases sometimes and 30% have made
rare purchases.

This reveals that, although most of the respondents make online purchases through
facebook marketing not very frequently, but growing popularity and attraction towards facebook
can definitely increase the ratio of buyers through facebook ads.
 Table No. 6 - Products purchased via Facebook Marketing

Products Frequency
Electronics 39
Household items 52
Cosmetics 35
Apparels 75
Books 12
Footwear 25
Sporting goods 7
Accessories 36
Others 20

Graph No. 6

Products purchased via Facebook marketing

75

52
39 36
35
25
20
12
7

The graph above shows that, nearly 26% of the respondents purchased electronic items,
24% purchased accessories, 35% purchased household items, 23% purchased cosmetics, 50%
spent on apparels, 8% purchased books, 17% purchased footwear, 5% spent on sporting goods,
while 13% purchased other categories of goods through Facebook marketing.

This reveals that, purchase of apparels, household goods, cosmetics and electronic items
are the most popular products that attract the online buyers while surfing the facebook page. This
is an opportunity for these online retailers to increase their sale volume by personally attract the
facebook users.
 Table No. 7 – Favorite E- Commerce Sites

E-Commerce sites Responses

Amazon 91
Shop clues 26
Myntra 19
Jabong 39
Snapdeal 78
Flipkart 8
E-Bay 17
Others 16

Graph No. 7

Favourite E-Commerce Sites

Others
16
E-Bay
17
Flipkart
8
Snapdeal
78
Jabong
39
Myntra
19
Shop clues
26
Amazon
91

The graph above shows that,61% of the respondents liked to purchase through Amazon,
52% liked Snapdeal, 26% liked Jabong, 17% liked Shopclues, 13% liked Myntra, 11% liked E-
Bay and 5% liked Flipkart. 11% of the respondents chose other sites as their favorites.

This reveals that Amazon and Snapdeal are favorites E-commerce sites of majority of
respondents that use Facebook marketing. Thus it can be concluded that facebook also have a
share in creating popularity of these E-commerce websites.
 Table No. 8 –Effectiveness of Facebook Marketing

Options Responses
Yes 115
No 12
Neutral 23
Total 150

Graph No. 8

Effectiveness of Facebook Marketing in inducing

customers

Neutral
15%
No
8%

Yes
77%

The graph above shows that, 77% of the respondents feel that Facebook is an effective
tool in inducing customers for making online purchases, 8% disagreed to this whereas 15%
showed neutral responses.

This reveals that most the respondents are of the view that Facebook is an effective tool
in inducing customers for making online purchases.
 Table No. 9 – Facebook Media as an effective source of information

Options Responses
Yes 81
No 26
Neutral 43
Total 150

Graph No. 9

Facebook media as a good source of information

Neutral
29%

Yes
54%

No
17%

The graph above shows that, 54% of the respondents feel that Facebook media is an
effective source of information on product brands, 17% disagreed to this whereas 29% showed
neutral responses.

This reveals that most of the respondents are of the view that Facebook media is an
effective source of information on product brands.
 Table No. 11 – Behavioral Responses

Assertions Yes No Neutral Total

Frequently of seeing E-Commerce Ads on 112 16 22
150
Facebook (75%) (10%) (15%)
Facebook Marketing promotes impulsive 89 25 36
150
purchase (59%) (17%) (24%)

Graph No. 11

Behavioural Responses
Frequently of seeing E-Commerce Ads on Facebook
Facebook Marketing promotes impulsive purchase
112

89

36
25 22
16

Yes No Neutral

The above analysis shows, most of the respondents agree that they see the E-Commerce Ads
very frequently on the Facebook page which induces the users towards impulsive purchases. This
is evidence that Facebook marketing definitely has an advantage in promoting the products of E-
Commerce websites and thereby increasing sales.
 Table No. 12 – Informative Responses

Assertions Yes No Neutral Total

68 43 39
Product Information on Facebook ads is sufficient 150
(45%) (29%) (26%)
The comments about brands/products are relevant and
87 24 39
helpful 150
(58%) (16%) (26%)

Graph No. 12

Informative Responses
Product Information on facebook add suffient
The comments about brands/products are relevant and helpful

87

68

43
39 39

24

Yes No Neutral

The above analysis shows that majority of respondents consider the information provided by the
E-Commerce sites through Facebook is sufficient enough for making purchase decision. This
revelas that when a person is directed towards the website through Facebook, he can easily get
access to all the products of various brands, thereby making sound purchase decisions. Also it
can be seen thatmost of the respondents rely on the comments and feedback of various
experienced customers which also positively promotes the brands.
 Table No. 12 – Brand Image

Assertion Yes No Neutral Total

Easy recognition of brand on Facebook

87 36 27 150
advertisements

Brands I have seen through Facebook Ads are reliable

79 31 40 150
and attractive

Effective tool for creating brand image and brand

94 11 45 150
equity

Graph No. 12 – Brand Image

Brand Image
Easy recognition of brand on Facebook advertisements
Brands I have seen through Facebook Ads are reliable and attractive
Effective tool for creating brand image and brand equity
94
87
79

45
36 40
31 27
11

Yes NO Neutral

The above analysis shows that Facebook is an impactful media for the E-Commerce sites to
create their brand image and brand equity among the customers. Majority of the respondents
agreed that it is easy to recognize the product brands on Facebook page. Moreover, they found
the brands to be reliable and attractive
 CHAPTER – 4
HYPOTHESIS TESTING
4.0 HYPOTHESIS TESTING

A hypothesis test is a statistical test that is used to determine whether there is enough
evidence in a sample of data to infer that a certain condition is true for the entire population.
A statistical hypothesis test is a method of statistical inference. Commonly, two statistical data
sets are compared, or a data set obtained by sampling is compared against a synthetic data set
from an idealized model. A hypothesis is proposed for the statistical relationship between the
two data sets, and this is compared as an alternate to an idealized null hypothesis that proposes
no relationship between two data sets. The comparison is deemed statistically significant if the
relationship between the data sets would be an unlikely realization of the null
hypothesis according to a threshold probability—the significance level. Hypothesis tests are used
in determining what outcomes of a study would lead to a rejection of the null hypothesis for a
pre-specified level of significance. The process of distinguishing between the null hypothesis and
the alternative hypothesis is aided by identifying two conceptual types of errors (type 1 & type 2)
and by specifying parametric limits on e.g. how much type 1 error will be permitted.

Hypothesis Testing
To test the hypothesis “There is no significant relation between consumer purchase behavior and
Facebook marketing done by online shopping sites” one way Anova test is applied where impact
of facebook marketing is taken as fixed factor and Brand attitude representing buying behavior
of the respondents is taken as dependent variable, where following results were obtained:

ANOVA

Sum of Squares df Mean Square F Sig.

I easily recognize brand Between Groups 2.700 2 1.350 1.859 .018

features in Facebook Within Groups 30.500 42 .726

advertisements Total 33.200 44
Brands I have seen through Between Groups .631 2 .315 .383 .004
Facebook Ads are reliable Within Groups 34.569 42 .823
and attractive Total 35.200 44
Facebook is an effective tool Between Groups .078 2 .039 .060 .002
for online retailers to create Within Groups 27.167 42 .647
their brand image and brand
equity on the minds of the Total 27.244 44
consumers
In case of all the variable the sig. value (p value) obtained is less than 0.05 (p < 0.05), which
states that there is significant association between consumer purchase behavior and Facebook
marketing done by online shopping sites and it is concluded that Facebook marketing done by
online shopping sites has a positive impact onconsumer purchase behavior. Hence the hypothesis
there is no significant relation between consumer purchase behavior and Facebook marketing
done by online shopping sites is rejected. And alternate hypothesis i.e. There is no significant
relation between consumer purchase behavior and Facebook marketing done by online shopping
sites is accepted.
 CHAPTER – 5
FINDINGS AND CONCLUSION
5.0 FINDINGS
From the responses collected from 150 persons, the findings can be listed as-
 As per the findings, majority of the respondents use facebook daily and thus it can be a
very good tool for marketing various products online.

 The respondents have used Facebook for their online purchases from different brands.

 E-Commerce sites like Amazon and Snapdeal are favorites of majority of respondents
that use Facebook marketing.

 As per the findings, majority of the respondents are of the view that Facebook is an
effective tool in inducing customers for making online purchases.

 Facebook media is a great source of information on product brands.

 The respondents frequently see E-Commerce Ads on their Facebook page.

 As per the findings, the respondents are of the opinion that that Facebook Marketing
promotes impulsive purchases.

 The information about products and services of a brand on Facebook is sufficient to make
a purchase decision.

 Most the respondents are of the opinion that the comments about brands/products on
facebook are relevant and helpful.

 The respondents easily recognize brand features on Facebook advertisements.

 Majority of the respondents trust the brands seen though Facebook ads and think them to
be reliable and attractive.

 As per the findings, Facebook is an effective tool for online retailers to create their brand
image and brand equity on the minds of the consumers.
5.1 CONCLUSION
Today, as more and more users connect to the social network, it stands to reason
that social media is becoming the increasingly accepted mode of communication for the
Internet audience especially Facebook. Facebook advertising enables customers to share
their experience, ideas, interest and useful information about a brand. It is useful in the
sense that it is interactively helpful in collecting feedback and demographic information
of targeted customers. In current business environment, Facebook advertising is an
effective source to reach targeted customers. It provides the opportunity to build up your
brand and engages with customers on a large social network. Facebook is an effective
tool in inducing customers for making online purchases. Facebook media is a great
source of information on product brands. The information about products and services of
a brand on Facebook is sufficient to make a purchase decision. It is an effective tool for
online retailers to create their brand image and brand equity on the minds of the
consumers. The benefits for organizations of marketing on Facebook we have seen above
are lower communication costs, personalized and directed advertising, immediate
feedback from customers, word-of-mouth referrals and positive influence on buyer
behaviour.
CHAPTER – 6
SUGGESTIONS
  Facebook should provide more opportunities to small and medium scale online retailers
to promote their brands.
 Handle negative comments and complaints, on facebook page regarding products, in an
appropriate way is must for the marketers. People do occasionally view other customer’s
comments before purchasing. It is normal for a company to receive some negative words
or complaints from customers. The key is to understand how to handle them correctly.
 Business Fan pages can also be an attraction. Fans should receive updates from the
company as new information is posted. The organization can regularly post information
on the business/fan page on upcoming events, articles, games, blogs, podcasts, videos and
links.
 Sellers must interact with community members in order to spread positive word-of-mouth
and to collect information on consumer tastes and needs.
 Because Facebook is becoming a new marketing tool for companies to enhance their
brand awareness, they need to adopt new marketing policies and strategies that are
different from the traditional ones. Marketing teams need to learn new communication
strategies about how to maintain and improve long-term relationships with existing
customers and also how to reach out to other prospective customers.
 Facebook should also be used as a platform to spread social messages like Human
Trafficking, organ donation, Child abuse etc., to spread awareness, that can benefit the
society and protect it from evils.
 Organizations might create a group page where they can arrange direct connection with a
community of people linked by one common interest. Through these communities,
marketers are able to identify consumer tastes and likes, which is essential in helping to
create market segmentation and targeting and positioning strategies

FUTURE SCOPE
Facebook can be an ideal alternative to telemarketing and marketing research because
people are tired of telemarketing and marketing research calls made through call centers.
Facebook is an excellent direct-response marketing platform, which can provide immediate and
direct answers to marketing questions and problems within the least time period. Through the
interaction with customers, organizations can gain valuable insights and feedback about existing
and potential products and services. In todays scenario Youtube, seems to be more equipped in
grabbing customer attention through innovation in the marketing strategies and facilities. It can
be a challenge to facebook to bring more strategies and be a more superior marketing tool.
BIBLIOGRAPHY
BIBLIOGRAPHY
 McCole, E, Ramsey, E. & Williams, J. (2010) Trust considerations on attitudes towards
online purchasing: the moderating effect of privacy and security concerns, Journal of
Business Research.
 Wang, X., Yu, C. 8c Wei, Y. (2012) Social media peer communication and impacts on
Purchase intentions: a consumer socialization framework, journal of Interactive Marketing.
 Bronner, F. & de Hoog, R. (2010) Consumer-generated versus marketer-generated websites
in consumer decision making. International Journal of Market Research.
 Ali, H. (2011) Exchanging value within individuals’ networks: social support implications
for health marketers. Journal of Marketing Management.
 Fuller, J., Muhlbacher, H., &Matzler, K. (2009) Consumer empowerment through internet-
based co-creation. Journal o f Management Information Systems.
 Bagozzi, R.P. & Dholakia, U.M. (2002) Intentional social action in virtual communities.
Journal of Interactive Marketing.

 www.youtube.com
 www.wikipedia.com
 www.facebook.com
 www.shodhgangainflibit.com
ANNEXURE
 QUESTIONNAIRE
A STUDY ON IMPACT OF SOCIAL MEDIA MARKETING ON CONSUMER BUYING
BEHAVIOUR TOWARDS E- COMMERCE WEBSITES IN NAGPUR CITY
(WITH SPECIAL REFERENCE TO FACEBOOK MARKETING

Name of the Respondent: ________________________________

Gender: Male [ ] Female [ ]
Age: _____ Yrs.
Occupation: ______________________
______________________________________________________________________________

From Q.1–10: Please respond to the following questions by putting[]:

1. Do you have a Facebook Account?

( ) Yes ( ) No

2. How frequently do you use Facebook?

( ) Daily ( ) Few times in a week

( ) Few times in a month ( ) Rarely

3. How often do you make online purchase via Facebook marketing?

( ) Frequently ( ) Sometimes
( ) Rarely

4. Which of the following did you purchase via Facebook Marketing?

( ) Electronics ( ) Household items

( ) Cosmetics ( ) Apparels
( ) Books ( ) Footwear
( ) Sporting goods ( ) Accessories

( ) Others (Please specify) ___________________________

 5. From which of the following websites (that advertise on facebook) have you made an
online purchase?

( ) Amazon ( ) Snapdeal
( ) Shop clues ( ) Flipkart
( ) Myntra ( ) E-Bay
( ) Jabong

( ) Others (Please specify) ___________________________

6. Do you think different brands of the same product serve one and the same purpose?

( ) Yes ( ) No
( ) Neutral

7. Do you think Facebook marketing is effective in inducing customers towards online

purchase?

( ) Yes ( ) No
( ) Neutral

8. Do you trust Facebook media as a good source of information on products and services
for different brands?

( ) Yes ( ) No
( ) Neutral

9. Do you agree that information search is easier via Facebook marketing as compared to
other media sources?

( ) Yes ( ) No
( ) Neutral

From Q.11–20: Please respond to the following questions by putting[]:

(a) Agree (b) Disagree (c) Neutral

BEHAVIORAL RESPONSES

Sr.
Statements a b c
No.
12. I frequently see E- commerce Ads on my Facebook page

13. Facebook marketing promotes impulsive purchases

INFORMATIVE RESPONSES

Sr.
Statements a b c
No.
14. The information about products and services of a brand on
Facebook is sufficient to make a purchase decision

15. I prefer to shop only from large retailers on Facebook

E.g. Amazon, Flipkart etc.

16. I closely follow the suggestions of the positive comments on

Facebook and purchase the recommended product/brand

17. The comments about brands/products are relevant and helpful

BRAND ATTITUDE
 Sr.
Questions a b c
No.
18. I easily recognize brand features in Facebook advertisements

19. Brands I have seen through Facebook Ads are reliable and
attractive

20. Facebook is an effective tool for online retailers to create their

brand image and brand equity on the minds of the consumers

From Q. 21–25 : Please Rate on a scale from 1 to 5, the impact of Facebook media in each
stages of your buying behavior or purchase decision making process-
1- No impact 2- Slight impact 3- Fair impact
4- Great impact 5- No response

Sr. Rating
Impact
No. ( 1to 5 )
21. Frequent Exposure
22. Information Search
23. Purchase Decision
24. Secured
25. Brand Image

Q-26. Anything more you wish to state about the Impact of Facebook Marketing?

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