EFFECT OF SOCIAL MEDIA ON CONSUMER BUYING BEHAVIOUR OF JUMIA PRODUCTS IN PORT HARCOURT

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Abstract

The study examines effect of social media on consumer buying behaviour of Jumia products in Port Harcourt. The survey design was employed since the study was to ascertain the relationship between social media and consumer buying behaviour. The study was designed to focus on selected Jumia Customers in Port Harcourt Metropolis in Rivers State. The population of this study constitutes all Jumia Customers in Port Harcourt Metropolis in Rivers State which was unknown. The judgmental sampling technique which is a non-probability sampling technique was used for selecting the sample size. The sample size of this study was a judgmental sample of 130 Jumia Customers in Port Harcourt Metropolis, Rivers State. In this study both the primary and secondary data were used. The study found a significant positive relationship between the three dimensions of social media and consumer buying behavior of Jumia products in Port Harcourt. Based on the findings,  it was recommended that corporate organizations should concentrate on their branding campaigns through the social media, which have robust audience base and the management of Jumia in Nigeria should adopt more aggressive marketing strategy that inculcates the social network sites in creating awareness for its products and services to help in enhancing their profitability.

Table of Contents

Title Page    i

Title Page    ii

Declaration iii

Certification         iv

Dedication  v

Acknowledgement         vi

Abstract      vii

Table of Contents viii

CHAPTER 1        1

INTRODUCTION         1

1.1 Background to the Study  1

1.2 Statement of the Problem  3

1.3 Purpose of the Study         4

1.4 Research Questions 4

1.5 Research Hypotheses        4

1.6 Significance of the Study   5

1.7 Scope of the Study  6

1.8 Limitation of the Study     6

1.9 Definition of Terms 7

CHAPTER 2        8

REVIEW OF RELATED LITERATURES 8

2.1 Conceptual Review  8

2.1.1 Concept of Social Media          8

2.1.2 Dimensions of Social Media    12

2.1.2 Concept of Consumer Buying Behaviour   14

2.1.4 Measures of Consumer Purchase Behavior 16

2.1.5 Social Media and Consumer Buying Behaviour   21

2.2 Theoretical Framework     24

2.2.1 Theory of Planned Behavior (Icek Ajzen, 1991)   24

2.3 Empirical Review    24

2.4 Summary of Related Empirical Studies         26

CHAPTER 3        28

RESEARCH METHODOLOGY      28

3.1 Research Design:     28

3.2 Population of the Study    28

3.3 Sampling Techniques Used         28

3.4 Sample Size    28

3.5 Sources of Data       28

3.5.1 Primary Source (s) of Data      29

3.5.2 Secondary Sources of Data      29

3.6 Research Instrument for Data Collection       29

3.7 Validity and Reliability of Instrument  29

3.8 Techniques for Data Analysis/Test of hypotheses   30

CHAPTER 4        31

DATA PRESENTATION AND ANALYSIS       31

4.1 Questionnaire Distribution and Retrieval:      31

4.2 Data Analysis and Presentation  31

4.3 Descriptive Statistical Analysis  33

4.4 Hypotheses Testing 36

4.5 Discussion of Findings:     37

CHAPTER 5        39

SUMMARY, CONCLUSION AND RECOMMENDATIONS         39

5.1 Summary       39

5.3 Conclusion     39

5.4 Recommendation     40

References  41

Appendix I 44

Appendix II          45

CHAPTER 1

INTRODUCTION

1.1 Background to the Study

In modern marketing, the study of consumer buying behaviour helps the manufacturers to know what to provide and also the marketer whom to sell the products to. Consumer buying behaviour is the assessment processes and acts of customers involved in buying and using goods or services. Consumer buying behaviour enables them segment the market and serve it satisfactorily and profitable. Marketers or organization must appreciate the importance of studying the behaviour of consumers in its target market, asserting that this may enable them to reasonably predict the consumer’s purchasing power.

Consumer buying behaviour thinks about studying individuals, groups or organization and every one the activities related to purchase, use and disposal of products and services, including the consumer’s emotional, mental and behavioural response that precede or follows these activities. Consumer behaviour includes all those activities or decisions through which a consumer passes for obtaining, consuming and taking away products and services (Shamsi, 2018).

It is important that each marketer must have relatively complete knowledge about the patron behavior normally. A consumer buying behavior is influenced by cultural, social economic/demographic, psychological factors. Amongst these factors, cultural factors exert the broadest and deepest influence. Consumer is the ultimate user of a product or services. A consumer is the one who derives the satisfaction or benefit offered (Nennaton & Peace, 2012).

Consumer buying behavior is often influenced by a leading brand. This value is created by generating demand (via repurchases) and securing of future earnings for the organization (Sullivan and Oliveira, 2003). Therefore social media marketing serves as opportunities for communication and depends upon new and unusual thought patterns (Heinlein & Kaplan, 2010; Kweskin, 2008).

Social media marketing was one of the popular channel organizations used to communicate their brands during the recession. Some of those mediums are; online electronic media which helps facilitates participation, responsiveness, consultation, connectivity and networking amongst online end users (Mayfield, 2008). Social media channels like Twitter, Facebook, YouTube, LinkedIn, Whatsapp, etc are some of the dynamic tools that have helped facilitate online rapport (Golden, 2011). Relatively, it is a low cost pattern of marketing which allows organizations to engage direct end-users through their contacts (Heinlein and Kaplan, 2010).

Kaplan and Haenlein (2010) give a general definition of social media in consideration of Web 2.0 and User-Generated Content. Social media is a group of internet-based applications that build on the ideological and technological foundations of Web 2.0 and that allow the creation and exchange of User Generated Content (Kaplan &Haenlein, 2010, s. 61). Parr (2010) defines social media as the use of electronic and Internet tools for the purpose of sharing and discussing information and experiences with other human beings in more efficient ways. Jantsch (2008) considers social media as the use of technology combined with social interaction to create or co-create value. According to Merriam-Webster dictionary, social media is defined as forms of electronic communication through which users create online communities to share information, ideas, personal messages and other content. Dykeman (2008) regards social media as “the means for any person to: publish digital, creative content; provide and obtain real-time feedback via online discussions, commentary and evaluations; and incorporate changes or corrections to the original content” (Dykeman, 2008). Hence, this study investigates the effect of social media on consumer buying behavior of Jumia products in Port Harcourt Metropolis.

1.2 Statement of the Problem

The coming of the Internet and its acceptance by the public, have altered quite a lot in the way organizations promote their services and products as well as the channels of communication between them and their customers. Miller, (2010) stated in his research that social marketing has made very important role in persuading consumers to buy online. He found that 70% of consumers are visiting Social Media to get useful information, 49% of them made the decision to buy certain product and 60% of consumers prefer to share their information about the products with others online. However, the actual transactions of purchasing processes occur for only 7% of consumers (Miller and Lammas, 2010). Basically, the promotional focus of some organizations is on the conventional mass media advert style which includes commercials on TV, radio jingles and advertisements in print formats such as newspapers and magazines along with billboard placements. It is now on record that as the Internet is fast advancing across the global marketplace, the effectiveness of traditional mass media is fast on the decline.

Studies have also shown that the use of external information affect the competitive strategy of firms and has a positive effect on the success of new products (Joshua, 2007). An additional problem has been that previous researches on social media were mostly conducted in western/developed countries. Recent studies have called for research of social media in non-western or developing countries settings. In particular, countries in transition to market based economies are good candidates for social media research. Hence, the study seeks to examine the effect of social media on consumer buying behavior of Jumia Product in Port Harcourt Metropolis.

1.3 Purpose of the Study

The main purpose of the study is to examine the effect of social media on consumer buying behavior of Jumia Product in Port Harcourt Metropolis. The specific objectives are as follows,

1.       To examine the extent to which social network site affects consumer buying behavior of Jumia Product in Port Harcourt Metropolis.

2.       To examine the extent to which wikis affects consumer buying behavior of Jumia Product in Port Harcourt Metropolis.

3.       To examine the extent to which blogs affects consumer buying behavior of Jumia Product in Port Harcourt Metropolis.

1.4 Research Questions

1.       To what extent does social network site affects consumer buying behavior of Jumia Product in Port Harcourt Metropolis?

2.       To what extent does wikis affects consumer buying behavior of Jumia Product in Port Harcourt Metropolis?

3.       To what extent does blogs affects consumer buying behavior of Jumia Product in Port Harcourt Metropolis?

1.5 Research Hypotheses

H01: Social network site does not affect consumer buying behavior of Jumia Product in Port Harcourt Metropolis.

H02: Wikis does not affect consumer buying behavior of Jumia Product in Port Harcourt Metropolis.

H03: Blogs does not affect consumer buying behavior of Jumia Product in Port Harcourt Metropolis.

1.6 Significance of the Study

This study is of significance and interest to various stakeholders. The study mainly affect the following;

Scholars and Academicians

 Researchers can use this study to facilitate further research on other sectors especially those that are related to social media platforms. The study provides baseline data that assists people to carry out similar studies among other organizations where the business environment is similar.

Companies and Organizations

The study will assist online retailers to increase their profits by utilizing their sales opportunities. The study will also help online retailers through social media to adapt to the changing consumer tastes and preference to avoid heavy losses when stocks pile up. The research also aims to serve as an indicator to potential companies of how they can tap into the market niche of the youth via social media sites.

Consumers

Since most consumers interact with social media in making decision relating to purchases of their choice, the findings of this study can be used to help the consumers establish the factors that impact on their choices based on the different stages of buyer decisions.

Online Consumers

Often, online shoppers are not aware of the factors that impact their decisions. The research will provide measures required to ensure that consumers purchase quality products that suit their needs.

1.7 Scope of the Study

The study is delimited under the following heading: content scope, geographical scope and unit of analysis.

Content Scope: The content scope of this study involves an investigation to ascertain the effect of social media on consumer buying behavior of Jumia Product in Port Harcourt Metropolis. The dependent variable is consumer buying behaviour, measured by demographic factors, cultural factors and social factors. While independent variable is social media measured by social network sites, blogs and wikis.

Geographical Scope: This study is delimited to Port Harcourt Metropolis with reference to selected Jumia Customers in Port Harcourt Metropolis in Rivers State.

Unit of Analysis: The unit of analysis in this research involves customers of Jumia at the time of the study.

1.8 Limitation of the Study

In course of carrying out this research, the researcher met with a lot of constraints. Among these constraints were: The time frame which this research was expected to be completed which was too short.

Secondly, the cost in carrying out this research work which acted as a barrier and the researcher was not financially buoyant to cope with all the cost.

Finally, assembling the relevant materials needed for this work was a problem. It was difficult due to the fact that some of the respondents were not willing to give us the required coorperation.

1.9 Definition of Terms

Consumer:  A consumer is the one who derives the satisfaction or benefit offered.

Consumer behavior: It is the study of how individual customers, groups or organizations select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants.

Social media: It is the use of electronic and Internet tools for the purpose of sharing and discussing information and experiences with other human beings in more efficient ways.

Psychological Factors: This are buying motives, perception of the product and attitudes towards the product.

Social Factors: They are social status, reference groups and family.

Cultural Factors: Are religion, social class—caste and sub-castes.

Blogs: A blog (a contraction of the term web long) is a type of website, usually maintained by an individual with regular entries of commentary, descriptions of events or other material such as graphics or video. Entries are commonly displayed in reverse-chronological order.

Facebook: Facebook, Inc. is an American online social media and social networking service company based in Menlo Park, California.

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