The impacts of Social Media on UK Consumers Brand Perceptions and Purchase Decisions - Essay Example

THE IMPACTS OF SOCIAL MEDIA ON UK CONSUMERS BRAND PERCEPTIONS AND PURCHASE DECISIONS Table of Contents Table of Contents 2 Introduction 4 1. Aim of the Research 4 1.2 Objectives of the current research 5 1.3 Research Questions for the research 5 2. Critical Review of Literature: 6 2.1. Rationale of the research 6 2.2. Concept of social Media 6 2.3. Concept of brand perception 7 2.4. Consumer buying behaviour or decision making 8 2.5. Role of social media in making buying decision making 11 3. Research Methodology: 12 3.1. Research Design 13 3.2. Research philosophy 13 3.3. Research approach 14 3.4. Data collection process 15 3.4.1. Data sources 15 3.4.2. Data technique 15 3.5. Population and sampling of the respondents 16 3.6. Set of research questionnaire 16 3.7. Ethical issues involved in the research: 16 3.8. Limitations of the research 17 4. Data analysis 17 4.1. Data Analysis Plan 18 5. Conclusion 18 6. Time schedule of the Project 19 Reference list 21 1. Introduction Organisations are facing intense challenge in the globalised era regarding profitability, sustainability and growth. Customers buying behaviours will get the affect of the product features, marketing policies and medium of market. In the current study, an in dept analysis of impacts of social media among the UK consumers regarding brand perceptions and purchase decisions is recorded (Aaker, 2011). Contemporary marketing strategies are converting their domain towards the online atmosphere. Online perspective of marketing has increased potential reach of the customers with advertising messages. Organisations are able to explore the market in a more commercial manner. Online medium of advertising evolved development of the communication strategies. In developed countries like the UK and USA people are increasing use of social networks for making social connections. Social media is developing the communication aspects among the UK based consumers and firms. In the current study, retail industry of the UK is used to contrast the impacts of social media on retail customer’s brand perceptions and purchase decisions (Apéria and Georgson, 2011). 1.1. Aim of the Research This research will be aimed to investigate the impacts of social media on brand perceptions and purchase decisions of the consumers of the UK. Moreover, this study will be emphasising consumer behaviour factors in the UK based retail industry (Berry, 2007). British people are having various retail firm options like “Big Four” firms like Tesco, ASDA, Sainsbury and Morrison, apart from those retailers like LIDL, ALDI and Walmart. This research will be aimed to investigate on the potential effects of social media marketing strategies on consumer behaviour (Ofgem.gov.uk, 2015). 1.2 Objectives of the current research Research objectives will help in guiding the research activity in a systematic manner and with specified guidelines To investigate the effects of social media on brand perceptions and customer buying behaviour. To critically evaluate the social media policies in creating brand perceptions and affecting purchase decisions of consumers. To examine social media polices adopted by the UK based Retail firms. To recommend some social media marketing development policies to increase brand perceptions and consumers buying decisions. 1.3 Research Questions for the research Questions will provide the researcher with a particular framework for conducting research. In the current research 1. How social media affecting the brand awareness and buying behaviour of consumers? 2. What are major social media strategies adopted by the globalised firms to influence the decision making of consumers? 3. How the UK based retailers are using social media strategies in developing the brand perceptions and purchase decisions of potential and existing customers? 4. Does brand perceptions and purchase decisions affects organisational growth and sustainability? 2. Critical Review of Literature: 2.1. Rationale of the research Retail market of the UK is facing intense challenge of the competition from different organisations (Chernatony and McDonald, 2012). In retail market, Mainly, these small sized firms are limiting scope of the profitability and growth of other firms (Ofgem.gov.uk, 2015). Increased competition in the market is seeking for well established strategies for growth and sustainability. Current study will create a link among the different type of the social media advertising strategies to create brand awareness and favourable buying decision making from the retail customers. Social media is increasing popularity among the different ages and demographical areas (Clifton and Ahmad, 2009). 2.2. Concept of social Media Social media is one of the majorly used advertising and promotion medium for the organisations. Consumers are able to interchange experience and other concept about any brand or different products available in the market. Mainly, social networks are increasing the consumer ability or power of influencing other buyers. Social media are collecting and disseminating products and service related reviews from the users (Davis, 2010). Online marketing policy is increasing market efficiency or capacity of reaching more peoples. Social networks are playing crucial roles in making decisions for purchase or retail products. Social networks are creating commercial entity or brand value of different products and services. This platform is leading the people to create “Word of Mouth” promotions of any products or service (Retailresearch.org, 2015). 2.3. Concept of brand perception According to Berry (2007), brand perception or identity is one of the key aspects for developing the marketing strategies. The concept denotes capacity of the consumers for classifying products or services in market. Branding will help consumers to select best brand from the market. Again Buckingham (2011) stated that brand perception is the image of customers that is developed with the help of performance of products and service. Perception of consumer’s will impact buying behaviours of customers. In addition, brand equity also develops certain brand related perceptions. Brand perception will create additional potential for the products or services to achieve growth and sustainability in the competitive market scenario (Giehl and Lepla, 2012). Giehl and Lepla (2012) stated that brand perception of the customers depends on four different dimensions. Retailers can create brand value or image with the help of factors like “brand awareness, brand association, perceived quality, and brand loyalty”. Awareness of the customers about any brand will inspire them to spot out the product or service from a bunch and they can make positive buying decisions. According to Gunelius (2009), retailers are having huge range of products. Therefore, brand perception can create more competencies among the retail organisations. Brand perception can be created by the retailers with the help of some attribute of actions strategies like designing feasible marketing plan, products or service value development schemes and creating feasible positioning statement. Designing feasible brand development policy: Retailers are using the strategy of using the symbol of companies. They are using different type of colours, and motto to create perception among people. Branding policy also includes various marketing plan. Kapferer, (2008) critically evaluated branding process of retailers as they thinks innovative designs, colour schemes and marketing channels are more essential elements of reaching more customers. Products or service value proposal: Mennen (2011) stated the marketing and branding strategies of the company must ensure communication of products and service features. In the retail industries, organisations should develop the marketing plans providing all the aspects of service and products quality and features. Mennen (2011) argued that in the post recessional economic condition, customers are seeking for increased value in the products and service they are purchasing. Positioning statement: according to Okonkwo (2007), positioning report is used by the organisations in terms of developing the strategic fits for any products or service branding policies. This statement is developed by the company sales and marketing management to provide the employees some schedules and methodical process. Parameswaran and Jacob (2011) critically evaluated that consumer’s perception can be initially developed with the help of the feasible position statement. Positive image among the customers will make favourable buying. 2.4. Consumer buying behaviour or decision making Proper theoretical approach will help the researcher in outlining the consumer buying behaviour or potential purchase decision making in retail market. Kapferer (2012) stated that there are several theories regarding consumer buying behaviour. Standard Theory of consumer purchase behaviour or decisions: Purchases related decisions of the consumers are developed on the basis of different aspects. Standard theory of consumer decision making demonstrates some of the trait factors. Conventional model of decision making develops identification of need for any products. People will explore the features of various products and factors of pricing (Okonkwo, 2007). In the retail industry, people will be seeking for information regarding product details. Parameswaran and Jacob (2011) argued that retail industry is consisted of various companies and they are offering various ranges of products to the customers. Customer’s buying decisions are depending on evaluation of characteristics of various retail products. Temporal (2011) stated that customers will contrast benefits of products of different organisations and pricing policy of different products. Customers purchase decisions will be based on the perception and idea of products and services. Thus, satisfied customers will purchase more of the products (Scholz, 2012). Cultural Buying decision making theory: Alvarez and Casielles (2008) stated that cultural background of the customer can influence the buying decision making behaviour. Individuals can change their preference and expectation on the basis of their cultural traits. Values and beliefs of the peoples are impacting the buying behaviour. Attributes like professions, earning capacity and learning of the customers will manipulate the buying behaviour. Bottomley and Holden (2009) critically evaluated that retail industry of the UK will face some amount of complexity in terms of buying behaviours of customers. According to Apéria and Georgson (2011), family and other associates of the individuals will provide feedback regarding any products or services. People feel more secured if they get feedback of any products if they are getting feedbacks of any products from any individuals. Mainly trust or word of mouth promotion will impact the buying decisions (Alvarez and Casielles, 2008). Environmental Buying Behaviour Theory: As stated by Keller and Aaker (2008), buying behaviour of the customers will change as per different circumstances and different time. Customers of the retail firms will change their expectation for the different products in different seasons. Dick and Basu (2007) argued that post recessional economy forced customers to contrast prices of different products. Retail supermarkets of the UK also faced lower economic parity among the British people. Consumers are looking for economic products and avoid higher priced products. In addition, different weathers will manipulate customer’s choice in the global perspective (Shimp, 2008). Internal consumers buying decision making theory: Cho (2010) stated that shopping is one of the crucial actions of the consumers. In the retail and other industry, customers will explore all available products in the retail stores. People will evaluate various pricing policies of the UK retailers prior to making purchase decisions. Bolton and Lemon (2009) argued that selection of products also depends on the ability of self evolution of the products. People will select the best possible option from the available products ranges in respects to price and features. Standard of living of buyers also negotiates buying behaviour. People will be using costly and luxurious products to maintain status symbols (Temporal, 2011). 2.5. Role of social media in making buying decision making Social networks are getting huge popularity among the people for different reasons. Grace and OCass (2005) stated that it is one of the easier medium of making contacts and sharing beliefs with the relatives, friends and other associates. This medium is ensuring high rate of interpersonal connectivity among the people. Online users are able to share their experience and feedbacks with potential and other existing users quite well (Bearden and Jesse, 2006). According to Chaudhuri (2007), social media turned out to be the most emerging marketing channel for the organisations to attract people. Potential customers are able to acquire benefits of using products and services. Bearden and Jesse (2006) argued that retailers are using the social platform to increase the word of mouth promotion. Bearden and Jesse (2006) stated that consumer behaviour can be influenced by brand perception and marketing policies. Social media is controlling the traits of the customers in terms of earnings, buying enthusiasm, and appearance strategies. Social networks are using the brand appearance strategies to attract people towards any retail products. In addition, peoples are able to collect review of retailers and products from the social networks (Bottomley and Holden, 2009). Okonkwo (2007) investigated that social media marketing and brand orientation plans will cover the demographic attributes like age, gender, and disposable income of the customers. Social media is the major information source for consumers, providing them the features and quality characteristic of any retail products (Dawar and Philip, 2008). According to Mennen (2011), information will be negotiating buying behaviour of potential customers. Social networking sites are affecting customer buying behaviour as per the consumption and expenditure. Social platforms use strong communication among potential and existing customers. Buckingham (2011) critically evaluated that customer buying behaviours are also controlled by information regarding a particular products or service. Customers are highly influenced by the opinions provided by the exiting user which is a common trait of the people. Berry (2007) stated that social media is getting popular for the use of realistic communication tool. Customers are empowered to record rate of satisfaction or dissatisfaction for any sort of retail products they have purchased in the past (Chaudhuri, 2007). However, Buckingham (2011) contradicts on the social media marketing policy of the any organisation. Social media platform involves high initial cost for the management or firms. Organisations in the post recessional era need to be concerned about their spending. Many time peoples are manipulated by the social media groups. Mennen (2011) argued that social media can create negative brand perception among the peoples. Thus, purchase decision of the customers will hamper. 3. Research Methodology: Research methodology will be framing out systematic process of conducting the research. This section of the study will outline different research techniques that are used in conducting this research. Researcher will state the justifications for each and every techniques adopted. Brand perceptions and purchase decisions of the customers are investigated with feasible techniques. Research methodology will be developing the concept of social media concept in terms of developing marketing plan (Hatch and Schultz, 2008). In the current research, researcher adopted positivism philosophy in terms of investigating on the impacts of social media factors in the brand perceptions and purchase decisions of the UK based retail customers. This philosophy helped in citing or obtaining information having sound logic and assessment. Deductive approach of research is selected to conduct the research. Moreover, primary and secondary data sources are used in the research. Qualitative and quantitative data are contrasted to each other in terms of employing more evidence of the research (Grace and OCass, 2005). 3.1. Research Design Research process needs to be designed in a more feasible structure. Proper structuring of the research will help the researcher in gathering and choosing more realistic data sources for the topic. Any research can be designed in three different aspects like, exploratory, explanatory and descriptive. Researcher has selected descriptive design for investigating on the affects of social media factors in the brand perceptions and purchase decisions of retail customers of the UK. Such research design will cite more facts to provide critical knowledge on the concerned fact. However, exploratory and explanatory type of research designs will not contrast the theory or models of social media marketing, brand perceptions and consumer’s behaviour along with the collected primary data (Keller and Aaker, 2008). 3.2. Research philosophy Research philosophy will be controlling the choice of the researcher to conduct the research. Researcher can utilise any of the three philosophies like, positivism, interpretive and realism. Positivism is articulated by facts and information that helps in instilling better quality and proof for the study topic. On the contrary, interpretive study will aid the researcher to gain perceptive knowledge of complication faced by the organisational planning from the basis of social and cultural backgrounds of customers. Realism type of philosophy will generate real and contemporary ideas regarding the research topic (Lim and OCass, 2009). In the current research, researcher will be selecting positivism philosophy in order to obtain higher knowledge on brand perceptions and purchase decisions factors of the UK retail customers along with contrasting social media. Such philosophy inputs proper evidence and information regarding the social media policy of retailers of UK. However, interpretive and realism philosophy are not selected by the researcher as these two factors are unable to provide significant evidence of various theories and statistical data (Kapferer, 2008). 3.3. Research approach Research approach is crucial to develop the research with a relevant planning of collecting mandatory materials. Moreover, researcher will be able to make suitable format of research in the social media impacts. Researcher has the option of two types of research approaches like inductive approach and deductive approach. Inductive approach empowers the researcher to develop the analytical evolution of the collected resources and data. On the contrary, deductive approach will develop the research on the basis of some theories and newly formed theories on the concerned research attributes and collection of data (Berry, 2007). In the current research, researcher has chosen deductive approach to develop proper idea on impacts of social media on the brand perceptions and purchase decisions of customers of UK retail industry. This approach will help the researcher in citing suitable statistical data contrasting with the theoretical frameworks (Bolton and Lemon, 2009). 3.4. Data collection process Data collection is one the major actions of research process. Researcher will be able to gather proper information and facts regarding the impacts of the social media on the brand perceptions and purchase decisions of the retail customers of UK based firms. Current project used both the primary and secondary sources. 3.4.1. Data sources Data source are the resources that are helpful to conduct the research and gain feasible idea on the research topic. The researcher can mention outcome and information regarding the topic related factors. Primary and secondary are the two types of data option for the research. Primary data sources are the raw data that can be collected from the respondents with direct interaction (Bloemer and Kasper, 2006). These types of data are the most feasible data source that enriches the information and knowledge on the social media effects on brand perceptions and consumer behaviours. On the contrary, secondary data are collected from the sources like the printed materials like books, journals, empirical research and website blogs. In the current research, the researcher opted mixed approach to gain more details of the topic and increase the quality of information (Corstjens and Lal, 2008). 3.4.2. Data technique Data techniques are mainly having two different segments like qualitative and quantitative. The researcher can implement both the type of the data techniques to conduct the research. Here researcher used quantitative approach to evaluate the research topic. Quantitative approach will help the researcher in contrasting social media marketing effects in brand perceptions and consumer buying behaviours in retail market of the UK with most contemporary data (Carpenter and Fairhurst, 2009). 3.5. Population and sampling of the respondents Current study will have the population of the people or consumers of the retail industry of the UK. Tesco customers are mainly the population and universe of the current study. Mainly, the population of the study reported as 200 customers of the Tesco. Sample selection for the study is essential as this will aid the researcher in making the research process more effective and small sized set of respondents will make the analytical stage easy (Dick and Basu, 2007). 3.6. Set of research questionnaire A set of the questions will help the researcher to conduct research in a more systematic manner. Thus, researcher can explore the topic in a more qualitative manner and collect suitable evidence of social media impacts on the brand perceptions and purchase decisions of the customers of UK based retail industry (Cho, 2010). Researcher will be using the questions on demographic, economic, geographic and cultural aspects. Quantitative data will increase feelings and psychological data from the customers. Thus, the researcher will be able to explore affects of social media on consumer behaviour of UK retail market. 3.7. Ethical issues involved in the research: Application of collected statistics and other information: Materials collected in the time of research regarding the concerned topic needs to be used for the purpose of educational research only. Commercial use must not be made. Involvement of the respondents: Current research should be involving the researchers in voluntary manner. Researcher must not influence the respondents. This process will increase genuineness of the feedbacks reported by the respondents. Secrecy among the respondent’s facts: Respondent’s personal information must not be revealed to the further researchers. 3.8. Limitations of the research Genuineness of the collected data: Respondents of the research can input vague response or casual response. In addition, managers or employees of Tesco might be biased in the time of reporting the concern fact in the research. Time constraints: This educational research is facing the constraints of time that is limiting the researcher to explore various areas of the social media impacts of the brand perception and buying behaviour (Bothma, 2010). Financial constraints: This educational research will be restricted to Tesco UK social media policy because of the financial constraints. The researcher will be unable to expand the research depth (Cho, 2010). 4. Data analysis This research will be developed with the help of an appropriate data collection and analysis. Data analysis planning is a crucial strategy for the researcher in terms of conducting a feasible research. 4.1. Data Analysis Plan Current research will be involving a population size of more than 250 retail customers of the UK based retailers. ‘Simple random probability’ sampling technique will be used by the researcher in terms of the selecting retail customers in terms of collecting feasible data regarding social media impacts in brand perceptions and purchase decisions of the customers of the UK retail industries. Moreover, primary data collection will increase the rate of quality in the research. However, consumer’s reported data are analysed statistically with the help of table and graphs. Questionnaire survey will be made on the customers of the UK based retail industry. Respondents should be approached with the questions via social media like Facebook Again, data evaluation is made with the help of the statistical software like MS Excel and SPSS. Data analysis will help the researcher in contrasting the trends (Cho, 2010). 5. Conclusion From the study, it is obtained that the social media is increasing the reach of the people or potential customers. However, this policy will increase the feasibility of creating brand perception and customer decision making. Social media is increasing the communication potentials among the circles conveying positive and negative comments on the products features. In the globalised market, companies are using the social media strategies to create brand presence. The UK based retailers are facing the intense challenge of competition. It is observed that the people are using Facebook, Twitter, Pinterest and Instagram. Retailers are using the email marketing policies to create more brand image 6. Time schedule of the Project Research time schedule will help the researcher to conduct the research in a systematic manner. Moreover, each and every phase of research can be executed within time. Therefore, possibility of employing more quality in research will increase. Table 2: Gantt chart of research stages Main activities and stages of research 1st Week 2nd Week 3rd Week 4th Week 5th Week 6th Week 7th Week Selection of the research Topic Collection of Data from different sources as like primary and secondary Creating the Layout plan for the research Literature review development on the concerned factors of research Formulating a Research Plan for the current research Selection of suitable Research Techniques to conduct the research Primary data Collection for the research Data interpretation and Analysis on the basis of collection Reporting the Findings from Data evaluation statement Conclusion of the research development Formulating a Rough Draft of the project Submission of the Final research report Reference list Aaker, D.A., 2011. Building Strong Brands. 2nd ed. London: Simon & Schuster. Alvarez, B. A. and Casielles, R. V., 2008, Consumer evaluations of sales promotion: The effect on brand choice. European Journal of Marketing, 39 (1), 54-70. 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