Influence of Social Media on Consumer Perception

towards online Small and Medium Enterprises (SMEs)

Applied Research Methods Term Report

Supervised by:
Mr. Mumtaz Khan

Group Members:
Madiha Narejo (1535379)
Ayesha Rahman (1535377)
Hussain Ali (

Section
MBA Open

Shaheed Zulfiqar Ali Bhutto Institute of Science & Technology (SZABIST)

Acknowledgement
We would like to acknowledge the continuous support of our course facilitator Mr. Mumtaz
Khan for making this study interesting and knowledgeable.
His supervision and research knowledge allowed us to complete this study in a professional
manner. His constant support and advice led us to successfully conduct our research and report
our findings in a professional manner.

Abstract
This research aims to examine the influence of social media on consumer perception towards
online small and medium enterprises. Social media is one of the fastest growing networks and is
becoming a major tool of marketing for all businesses. Consumer perception is important
towards all retailers on how they see a specific enterprise and how social media affects their
perception. Our framework was developed through four attributes: convenience, trust,
information and customer relationship management and it was tested against consumer
perception of SMEs. Data was collected through survey (questionnaires). The respondents of the
survey belonged to the age group of 18-40 years and were approached by using convenience
sampling. Data was collected from 384 respondents and all the respondents belonged to
Karachi, Pakistan. The findings of the study suggested that all four variables; trust, information,
convenience and customer relationship management have a significant effect on consumer
perception towards SMEs.

Keywords Small and Medium Enterprises (SMEs), Social Media, Consumer Perception,
Impact, Stakeholders

Contents
Chapter 1: Introduction.............................................................................................. 5
1.1. Background...................................................................................................... 5
1.2. The problem..................................................................................................... 8
1.3. Purpose............................................................................................................ 9
1.4. Research Questions.......................................................................................... 9
1.5. Research Objective........................................................................................... 9
1.6. Justification..................................................................................................... 10
1.7. Limitations...................................................................................................... 10
1.8. Scope............................................................................................................. 11
1.9 Definition of Key Terms.................................................................................... 11
Chapter 2 Literature Review.................................................................................. 12
2.1 Social Media................................................................................................. 12
2.2 Use of Social Media for Business Purposes............................................12
2.3 Consumers perspective:............................................................................ 14
2.3.1 CRM......................................................................................................... 14
2.3.2 Convenience.......................................................................................... 15
2.3.3 Trust........................................................................................................ 15
2.3.4 Information............................................................................................ 15
2.4 Business Perspective..................................................................................16
2.4.1 Customer relationship Management.................................................16
2.4.2 Convenience.......................................................................................... 16
2.4.3 Trust........................................................................................................ 17
2.4.4 Information............................................................................................ 17
2.5 Theoretical Framework:........................................................................................ 18
2.6 Research Gap.................................................................................................. 22
Chapter summary.............................................................................................. 22
Chapter 3 Research Methodology..........................................................................23
3.1 Research Design.............................................................................................. 23
3.2 Procedure........................................................................................................ 23
3.3 Population....................................................................................................... 23
3.4 Sample and Sampling Method.........................................................................24
3.5 Measurement / Instrument Selection...............................................................24
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3.6 Variables.......................................................................................................... 25
3.7 Hypothesis...................................................................................................... 26
3.8 Plan of Analysis:.............................................................................................. 26
3. 9 Software employed......................................................................................... 27
3.10 Validity and reliability.................................................................................... 27
Analysis.................................................................................................................... 27
4.0 Quantitative Analysis...................................................................................... 27
4.1 Reliability......................................................................................................... 27
4.2 Demographic analysis:.................................................................................... 28
4.3 Cross tabulation:............................................................................................. 30
4.4 Descriptive...................................................................................................... 32
4.5 Correlation....................................................................................................... 32
4.6 Regression....................................................................................................... 34
4.7ANOVA/T-test.................................................................................................... 35
4.11 Discussion..................................................................................................... 35
5. Conclusion:........................................................................................................... 38
6. Recommendations:............................................................................................... 39
Chapter 7 - References............................................................................................. 40
References................................................................................................................ 40
Chapter 8 Appendix............................................................................................... 43

Chapter 1: Introduction
1.1. Background
With the growing trend of ecommerce, Internet is now not only used as an
information provider but as a means for online shopping as well. A survey
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was done by Ernst & Young in 1998 which indicated that over 39 million
consumers shop online and enjoy their shopping experiences (Ernst &Young).
The evolution of digital technology has enabled individuals to engage in
electronic word-of-mouth as well (Hennig-Thurau et al., 2004). With the
passage of time, Internet has become an imperative part of many
individuals everyday lives, be it at workplace or for the purpose of social
interaction. In todays fast-paced world, it has ascertained to be the essence
of any business as it has allowed companies to increase their customer base,
carry transactions and market their products in the most cost effective way
(Chen et al, 2008). Internet has transformed the way businesses carry out
their functions or how individuals spend their leisure time. Globalization has
made businesses heavily dependent on technology as it has made
connectivity easier. Internet presence has presented companies with a global
platform; as the creation of smart phones, chat rooms etc. have enabled
people to connect everywhere and at any time.
In this era where technology has revolutionized the entire world, Internet
serves as a source of knowledge for businesses that want to be aware of all
the latest happenings and keeping a track of it otherwise they might become
outdated. Majority of the businesses make use of social media as a mode to
advertise its products as it has become an essential promotional tool. (Abu
Bashar, Irshad Ahmed and Mohammad Wasiq, 2012).Today, it has become
vital for almost every company to have social media presence to increase
exposure and target its potential customer segment, and with social media
this can be attained in the most economical way. Social media marketing has
become a significant part of any companys marketing plan these days as it
has altered the way marketers and consumers communicate with each other.
Social networks have made it easier for companies to interact with their
customers and act in response to their problems promptly. Consumers can
also create a positive impact on others purchasing behavior by reviewing
the product/service and giving their valuable feedback and influencing
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someones buying decision. This proves to be extremely effective and

dependable when it comes from the source directly, attesting to be word of
mouth marketing for the product, and in the long run this brand advocacy
can result in profitability for the company. (Hennig-Thurau et al., 2004)
The use of internet and its access is rapidly rising in Pakistan, and a key factor which contributes
to this progress is the extensive usage of smart phones and mobile internet, as businesses are
coming up with low-priced phones with greater functions and applications. Nowadays, internet
can be easily accessed by everyone and has become a standard communication mode for small
and medium size enterprises (SME). Usually small and medium size enterprises are new setups
or are local organizations; therefore they lack the resources to invest in ATL and promotional
activities which are costly and can lead to adverse impact on their profit margins. Thus various
social media platforms and websites assist companies to reach and target broad customer base
with minimal costs. Many entrepreneurs are penetrating into the market with innovative products
and services and considering the cost benefit have adopted social media tools for marketing and
advertising. However, product success or failure principally depends on consumer satisfaction
and numerous other elements that would affect online buying behavior of consumers as stated by
Chen and Chou (2011). Social media has proven to be one of the most effectual and inexpensive
way to promote a brand and to attract and respond to customer needs through direct interaction
and engagement. With the help of research studies and current trends, we have become aware of
the fact that in the past few years, businesses are greatly affected by online networks. This is
because in this era of technological advancement, social media websites act as a platform where
the prospective consumers and companies connect and bond with each other which facilitates the
companies to create personal relationships and inculcates self-assurance and trust in consumers
for the product that it wants to purchase. (Mersey, et al., 2010)
Nowadays consumers are using many different online platforms such as
podcasts, blogs, Face book and various other social networks to access
product information and share with others. These social media vehicles are
deemed extremely reliable by any consumer who wants to research a bit
while buying a product, as he or she receives information and advices from

another buyer.

Digital platforms like these allow consumers to share their

opinions about a product, service or brand. (Kozinets, 2002)

Ecommerce industry has attained immense popularity among both; the
consumers and businesses. It has altered the way individuals think and
perceive about any brand. In todays world, digital marketing has become an
essential part of any organizations marketing department, as it has
reformed practices like advertising and PR campaigns (Hanna, Rohn and
Crittenden, 2011). Moreover, it has transformed the shopping habits of
consumers who desire to shop online. With the product and all its information
and specifications available on net, consumers consider social media tools as
a one stop solution. Post-purchase review that is product satisfaction or
dissonance is also another area where marketers are taking an advantage of;
optimistic feedback is used to magnify the reach and do positive word-ofmouth marketing for its potential target audience (Mangold and Faulds,
2009).
This communication of users builds a favorable or undesirable picture of the
brand in the minds of other prospective purchasers who go through the
posted information before deciding to make a purchase. Interactivity with
target brand in social media is comprehended differently by consumers
depending on the message they try to impart (Shin, 2008).
Social media consists of various communication channels that connect
millions of users worldwide on a single website or application such as
YouTube, Twitter, Face book etc.; these social media websites are generally
used by consumers of all age groups and so companies use them in their
social media marketing strategies (Sin, et al., 2012). These social media
websites have created a strong connection between the organizations and
their customers, that is, Face book has traffic of over 600 million daily users
with over 1.5 million pages (Face book 2013) while on Twitter around 500
million tweets are sent in a day (Tweeter 2012). Through research studies

done on the use of Face book among SMEs, it has been learned that Face
book is widely used for achieving many organizational objectives such as
sales generation, advertising, publicity, communication strategy, market
research, problem resolution, customer services and employee recruitment
(Bhanot, 2012). These advantages make it a vital tool for SMEs as it helps in
assessing a consumers viewpoint and attitude towards their product/service.
Due to the numerous benefits associated with the entire social media system
and the service model which aids in linking companies directly to end-users
in an economical and timely manner; it has been observed that over the
period since social media became the in thing, consumers attitude and
their purchasing behavior has made businesses recognize that social media
is something prevailing and will most likely to be the future of every industry.
(Williams and Cothrell, 2000) (Kaplan and Haenlein, 2010).
1.2. The problem

With the introduction of several social media platforms such as Face book, Twitter, Instagram
and YouTube, companies and startup businesses are using it as an effective communication tool
to market their business and advertise their products. Large organizations are also adapting their
strategies and campaigns and are emphasizing on social media as compared to conventional
marketing tactics. These mediums try to alter a consumers opinion about the product or service
as consumers use these platforms to share their experiences and express their views which can be
either positive or negative. Once a user does that, it might influence the attitude and beliefs of
others on social media too; hence it is imperative to determine whether social media actually
creates an impact on a users perception about an SME who are benefiting from these tools to
publicize their products and service.
1.3. Purpose

The primary objective of our research study was to ascertain if social media actually influences a
consumers perception regarding small and medium enterprises that use social media tools to
advertise themselves and to induce users to purchase their product/service.
1.4. Research Questions
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1. Is it convenient to buy products from online mediums?

2. Do users actually rely on the information shared on social media?
3. Do users trust social media as compared to other modes of marketing?
4. Does customer relationship management create a perception of customers when purchasing
online?
5. What other factors does consumers consider important and what insights can be evaluated
when a user purchases through social media channels?

1.5. Research Objective

The key objectives of this research study are:1. To examine if users feel that buying from online mediums is convenient.
2. To ascertain if users actually believe the information/data shared online.
3. To evaluate if users really trust social media tools more than other forms of marketing.
4. To assess if customer relationship management creates a perception when consumers purchase
online.
1.6. Justification

Currently, majority of the entrepreneurs and businesses are using social media as a promotional
tool to influence consumers and form meaningful relationships with them. This research paper
evaluated the significant role of social media and how it influenced a consumers attitude and
changed their viewpoint regarding a company. This study will prove to be valuable for stake
holders who are directly or indirectly involved in social media activities; it will help them
discover that whether it has any returns or should they rather pay emphasis to other modes of
marketing. This research will help distinguish which social media tools businesses can use
effectually if it affects consumer perception.
Stakeholders (Direct and Related):
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Direct stake holders are SME's who devote their time, capital and resources in social media as
they want to earn revenue from their business and are inclined to spend to maximize their
profitability. This will help them to know if they are investing in the right social media tool or
whether they should change their marketing strategy and focus on other channels. As its the
mission of every company to grow, generate profits and survive the market conditions due to
fierce competition, SMEs should concentrate on selecting the best medium within a limited
marketing budget.
The related stakeholders of this research paper are users of social media; as they want the
optimal advantage from every product they purchase and they should know how to make wise
purchasing decisions based on the information available about the product offering. They would
want to know if social media really creates a positive or negative impact on their attitude towards
a product/service. Through this, users will be able to know the influencing factors and use it to
their advantage when deciding to buy a product/service from a SME.
1.7. Limitations

1. The limitation of our study primarily includes time and resources restraint as we had only
two months to conduct the entire research and also required financial means to do anindepth analysis.
2. The survey was executed mainly in Karachi, Pakistan; hence the research study will only
be pertinent to the trends in Pakistani market.
3. As the sample population consisted of Karachiites only, we would have to be vigilant to
generalize it on the whole population as individuals from different geographic areas think
from their own perspectives.
1.8. Scope

1. This study gave an idea about the influence of social media on consumers perception and
their attitude in Pakistan.
2. The study principally took into account those individuals who have an internet
connection and are directly connected with SMEs through any social media channel but
most importantly Face book as it is the most popular medium for purchasing goods
among consumers.

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1.9 Definition of Key Terms

Small and Medium EnterprisesOrganizations which employ more than 10 workers but less
than 250 workers are called SMEs.
Social MediaChannels or mediums that enable users to develop, produce or share
information/data or to use it for social interactions.
Consumer Perception It describes the process by which an individual forms an opinion about
any product or service; this is affected by reviews of opinion leaders, promotion, publications
and social media tools.
Stakeholders Stakeholders refers to individuals, groups or organizations that are concerned
about the operations/activities of an organization. They are directly or indirectly related and can
influence or are influenced by its plans and policies.

Chapter 2 Literature Review

2.1 Social Media
The term social media is derived from two different ideologies, firstly the word social comes up
which basically defines the interactivity of a person with its surroundings. Then the term media
denotes the medium of communication. Thus, this term social media is defined as a type of
media through which people can commute socially. In social media, every person is a publisher
and can talk about whatever they like and dislike. (Safko, L. & Brake, D. K. 2009) Social media
is a kind of a shared connection for individuals where they have openness to connect with others
and with the world through a bounded system. The main forms of social media includes social
networks such as Face book, MySpace, Blogs, Communities etc.(Mayfield, 2008) Charlene Li
(2010) claimed through his research that the best form of social media for networking according
to the research is Face book. Social media acts as a great tool for companies to interact with their
audience and with those people who are actually interested in their product. It gives firms to
establish their brand and nourish it accordingly. In addition to this, the overall concept of

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interacting and communicating is so much easier that many firms are inclining to move in the
area of social media. (Maria Vernuccio, 2014). In addition to the fact that businesses interact with
their customers through social media, it is possible for customers to communicate with other
customers as well through social media. (Mangold et al.2009) Alexa (2010) reported that digital
media has given a chance to customers and entrepreneurs to promote and distribute their offers
through EBay, Amazon, YouTube, Wikipedia, MySpace, Twitter, Trip advisor and Face book.
The use of computers has shifted to smart phones and portable computers. Top 15 websites have
more than 11 percent global traffic which is based on user-generated content. Face book,
MySpace, YouTube, Wikipedia, and Twitter are among top 15 websites viewed. With consumers
getting more inclined towards digital media, print media is facing a major crisis (EdgecliffeJohnson 2008).

2.2 Use of Social Media for Business Purposes

SixDegrees.com was the first social media website which was launched in 1997 but social media
advanced through the launch of Face book and MySpace in 2003 and by 2008 it had become a
global phenomenon (Boyd and Ellison, 2008). Initially, social media was used as a tool to
connect with friends and for them to communicate but now it has been adopted as a business tool
(Bughin and Manyika, 2007).Businesses are now on social media platforms and using it as a tool
to assist them in their process such as in marketing, customer relations management, (Kim et al,
2010; Harris and Rae, 2009b; Hawn, 2009), business networking both inside (Kim et al, 2010;
Leader-Chive et al, 2008; Misner et al, 2009) and outside (Misner et al, 2009; Kim et al, 2010)
the company and in the recruitment process (Millard, 2007).
With the advancement of the internet and social media networks, businesses and individuals are
now using social media to conduct their business. This is because customers are now more
engaged through social media which businesses should take advantage of and respond to them
aptly through social media (See Siew Sin, Khalil MdNor, Ameen M Al-Agaga, 2012). As stated
by Laroche et al (2012), brand managers should use Face book as part of their marketing
strategy. Managers should see social media as an essential part of the internet as many users use
it on a regular basis. Through social media, organizations interact and engage with potential
customers and this leads to better customer relationships (Amichai-Hamburger, 2008). Social
13

media cannot be used for promotional activities only but also to build relationships with other
businesses/professionals which can lead to increased business transactions and better
communication (Richard Derham, Paul Cragg, Sussie Morrish, 2011)
A study was conducted amongst SME managers in USA, UK, Australia and India and the
conclusion was that a firms innovativeness, age and geographic location have a significant
impact on Twitter adoption (Wamba and Carter, 2013) whereas Zeiller and Schauer (2011)
concluded that SMEs will only use social media only if these platforms provide relevant and up
to date content. As recognized by Chua et al (2009) and Parker and Castleman (2007), they
discussed that SMEs are not the same but are different in many ways from each other i.e. in
terms of different style of management, age, educational level, attitude towards E-Business,
business goals etc. These factors make each SME different from the other and some social media
tools would be beneficial for one SME such as blogs whereas for another it wouldnt be.
Moreover, SMEs are usually not driven by profits, growth or competitive advantage but more by
family values, they tend to keep true to their values and want to have a personal connection or
identity with their business. It was stated by Harris et al (2008) that SMEs struggle to adopt
technology due to their lack of resources as compared to large businesses, however, the internet
has largely reduced the costs of marketing as compared to traditional mediums.

2.3 Consumers perspective:

H: Customer relationship management has a significant correlation with consumer
perception towards online SMEs
2.3.1 CRM
Before the advent of social media, firms exercised complete control over the communication
messages that they diffused to the customers and the duration of the customers exposure to
them. However, in the age of the social media, once a message has been delivered to the
customer, the firm no longer has any control over it and the message can be received by
numerous customers who can comment, discuss and share it with others as stated by Mangold
&Faulds, (2009). It was further elaborated by Manish Parihar (Jan 2012) in his study that
although the traditional touch points with the customer will stay around, the social media has
14

revolutionized the concept of customer relationship management as now customers and the firm
have increased interaction online.
Megha Patil (2011) states that customers are important for the firm as its current profit and future
growth depend on it. Customer relationship management is basically the relationship between the
firm and customer; which involves two way communication and interaction. The aim of CRM is
to make this relationship mutually beneficial and profitable. These days the focus of the firms is
to integrate social media with their CRM strategies in order to get closer to them and gain
customer insights. However, integrating social media in CRM is also challenging. Hoards of
information are generated online and in order to be effective, companies have to monitor them
and use them accordingly.
H: Convenience has a significant correlation with consumer perception towards online
SMEs
2.3.2 Convenience
Shopping convenience has been one of the most important factors in making customers adopt
online mediums for shopping (Beaucamp and Ponder, 2010). Companies are now increasingly
trying to take advantage of this insight by ensuring the speed and ease of use in the online
shopping experience for their customers. In todays fast paced lifestyle, the customer is always
looking to save time and online shopping either through social media or websites is gaining
popularity, in contrast to shopping from traditional bricks and mortar stores.
H: Trust has a significant correlation with consumer perception towards online SMEs
2.3.3 Trust
Trust in the context of online purchases from social media is defined as the belief of the user
regarding the reliability, credibility and accuracy of the information obtained from Face book and
it is an important factor that influences a consumers perception towards a brand (Chai et al.,
2011). These days SMEs post a lot of information about their brand, products and services
online. Marketing and promotional material is also posted online. However, the information will
only benefit them if the customer perceives it as relevant and trustworthy.
15

H: Available information has a significant correlation with consumer perception towards

online SMEs
2.3.4 Information
Kateranttanakul (2002) presents the view in his study that the content placed by a company
online has a strong association with customer satisfaction and the customers overall perception
of the brand. The reliability of the information provided affects the consumers attitude towards
the brand.
In addition, Christy & Matthew (2005) identified that the quality of the information provided by
the brand online had a significant influence on the consumers level of satisfaction. The content
format, accuracy and quality increased the level of trust and allowed the consumer to be happy
with the online store.

2.4 Business Perspective

H: Customer relationship management has a significant influence on consumer perception
towards online SMEs
2.4.1 Customer relationship Management
As technology is growing significantly the impact on Customer Relationship Management
(CRM) is having a positive impact on businesses. Innovation of technology of cloud computing
and web-based technology has been adopted by researchers to improve business & sales
performance by building strong relations with customers (Hunter and Perreault, 2006; Jelinek,
Ahearne, Mathieu, and Schillewaert, 2006). To have a competitive advantage over any
competitor, technology is playing a vital role. It not only improves the business processes but
enhances the customer relationship (Bharadwaj, Varadarajan , and Fahy, 1993). For establishing
a new business, CRM technology gives a chance to communicate well to their clients for greater
opportunities (Ahearne, Jelinek, and Rapp, 2005).

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The information gathered from the interaction and conversation with the
client on social media can be utilized to enhance the firms CRM system
(Rodriguez, Peterson, and Krishnan, 2012, pg. 378).
H: Convenience has a significant influence on consumer perception towards online SMEs
2.4.2 Convenience
Convenience is defined as time-buying or time saving(Douglas 1976;
Strober and Weinberg 1977; Strober and Weinberg 1980; Schaninger and
Allen 1981; Reilly 1982). Convenience goods are easily purchased and are
accessible at stores (Copeland, 1923). Convenience is considered as integral
factor in consumption and considers psycho-behavioral and economic and
temporal terms (Etgar (1978); Feldman and (Hornik, 1981); Hendrix (1984)
and Nicosia and Mayer, 1976).
For all the internet users, convenience is a very important construct (Papacharissi and Rubin,
2000). The word convenience was indicated by enjoying the convenience of shopping on web
(Korgaonkar and Wolin, 1999). Equity is of three types: value, relationship and brand (Lemon et
al., 2001). Value Equity is the customers objective based on perception of what is received
(Vogel et al., 2008). The key influences on value equity are convenience, price and quality
(Lemon et al., 2001). Koetal (2005) said convenience is a motivational factor for interactive
advertising.
H: Trust has a significant influence on consumer perception towards online SMEs
2.4.3 Trust
Trust plays a vital role in online transactions for both the consumer and the business. Cybercrime
is increasing day by day. Companies' perception of online trust has steadily evolved. Companies
have developed number of rules and procedures to protect itself from assailant that includes
privacy, security, reliability and credibility of the users (Shankar, Venkatesh, Glen L. Urban, and
Fareena Sultan, 2002). Furthermore, trust online spans the end-to-end aspects of e-business
rather than being just based on the electronic storefront. There is a possibility that consumers
17

may not trust company generated advertisement within social media. According to Red Bridge
Marketing (2008), regarding products and services, 78 percent of global consumers believe and
trust the suggestions of other people over any other data. Similarly businesses want to take
precautions before moving to the final phase of the transaction.
H: Available information has a significant influence on consumer perception towards online
SMEs.
2.4.4 Information
In this modern age, internet has opened doors to vast number of gates to different platforms. One
of them is information. We have numerous number of web (2.0) based search engines that
enables us to explore the unbounded knowledge store on the internet. Moreover, today we have
social media platform where mass number of users create, modify and share information on the
internet. Businesses refer to material present on social media as consumer generated media
(CGM). Bhanot, S. (2012) Knowledge on the social media is useful to both; the consumer and
the company. Customers perceive this information as more reliable than straightforward business
communication. Hence, peer opinion becomes a major influence on buying behavior
(Constantinides, Amo, and Romero 2010). Companies use this type of data to plan its decisions.
There are many social media platforms that sell their users data to the interested companies.
These companies then analyze the data to find relevant information that can influence their future
decision making. Through this, they can find the highs and lows of todays dynamic market.
Moreover, it is possible to communicate with hundreds of thousands of people about a product
and the company providing that product. This way, the effect of communication from consumer
to consumer is broadened immensely in the marketplace (Mangold and Faulds 2009, 357).

2.5 Theoretical Framework:

Past researches have talked about this topic in great detail and factored in all the factors that
affect the whole process of consumer purchase decision. For the past 25 years, the consumer
behavior has evolved immensely and has shown a great change in the consumer buying patterns,
and the reasons of change have also been evident (Kar, 2010). Social media has played a great
18

role in changing the consumer buying patterns and decision making process as it evolves around
certain variables which effect the consumers decision, that are; convenience, customer
relationship management, information available and trust factor. These factors are discussed and
emphasized upon in the previous researches which show that each one of them plays a
significant role in the decision making process of the consumer.
The research by Palmer (1996) quantified that people need to connect with the brand and the
people related to it, when they are buying a high involvement product. The element of
developing a brand and maintaining a relationship between its consumers is very essential to
ensure that the consumer has a positive image of the brand in his/her mind. Even for
strengthening its loyalty a brand has to maintain a relationship. For that purpose SMEs have
strength in this department, as due to the size they are more focused at their consumers and
through social media they are always connected. Consumers use social networks in day to day
life for multiple reasons and maintaining relationships with friends and colleagues is one of
them, this provides an edge to the companies and organizations to connect with their potential
customers and maintain a contact with them through CRM. Establishing an interpersonal
connectivity between online users of a social media channel has positively affected the
companies, and when talking about SMEs and their focused approach it could be highly
beneficial and cost effective for them to maintain contact with their consumers for a positive
lasting impact. (Utpal et al., 2004).
The experience of shopping has always been social for most of the people, and social media
allows consumers to meet and communicate with each other at an online medium where they can
discuss products and services, though the cultural aspects have an influence on consumers as
well while they make a purchase decision. (Pookulangaran et al., 2011) Social media along with
ecommerce aids the organizations to reach to more potential buyers, as it provides them with the
convenience factor. One of the major advantages of social media is that it connects the business
to the consumers in a way which is time bound and cost effective (Kaplan and Haenlein, 2010).
Previous researches state that the factor of trust also plays a very vital role in the perception of a
consumer about a product or service. We have noticed a decreased consumers confidence in
brands and an increase in confidence and trust in the opinions of others through social media
medium. The credibility of the consumers is getting lesser by the day when it comes to brand
19

messages communicated via TV commercials and what others say or prefer via social media and
consumer opinions online (Dellarocas, 2003). Earlier researches have proved that even a small
amount of adverse information have created meaningful effect on the mind of the consumer as
he/she thinks more before buying a product which has a negative review of the customers;
therefore the element of trust is a key operator in consumers perspective towards a brand on
social media (Schlosser, 2005).
As far as information is considered, when we think about buying a product the first thing a
person does is that it gathers information or reviews about the product. Information has two types
of sources; external and internal information search. The internal search process highly requires a
consumers recall about a commodity, and the other type of search i.e. external search, includes
person to person communication, physical visits to stores, trial and error and finally the online
social media tool to connect (Kardes, et al, 2011). One of the salient features of social media is
its informal means of communication which could be classified as communication with friends,
family members and co-workers. This interaction leads to discussions and opinions about
products and services pertaining to its information. Friends, family and peers connect with each
other to ask the quality of service at a certain restaurant or even the fabric of a dress that they
bought (Solomon, et al, 2010). This is also known as word-of-mouth or an engagement of
consumers in positive or negative communication of an outcome of dissatisfactory or satisfactory
experiences. This person to person communication relates to products, services, brands, and
companies and what effect it creates on a consumers buying decision (Evans, et al, 2009).
Various studies show researches that have been done on this subject. We can clearly see that the
factors that had been identified are clearly influential on the consumer buying behavior. The
conclusions which are drawn from the study "The New Consumer Study", that took place in
2009 by the Euro RSCG Worldwide; proves that a new potential customer has a very high
confidence in online content generated by his/her colleagues and friends, and therefore uses the
majority of the online methods to do research about a product before buying it in order to make
the best purchase. Word-Of-Mouth communication is cheapest, quickest and one of the most
reliable tool which people rely on heavily. It provides them with great convenience as it is less
time consuming, requires lesser physical work and also proves to be cost effective due to no
additional charges. In addition to this, the factor of maintaining CRM also proves to be beneficial
20

as the consumer forms a bond of reliability with the brand when connected to it. (Dellarocas,
2003).
Through all this literature which we have identified, we will try to assess the relationship of all
these factors with Consumer perception through a quantitative analysis and would try to gain
further insights as to why people buy through social media from SMEs through a qualitative
analysis.

*Papacharissi and Rubin (2000), (Chai et al., 2011), (Sulaiman Ainin et.al 2015)

Definition of Variables of Framework:

In SMEs context, organizations post lot of information about their organization, products,
services and other promotional activities and also obtain information from Face book and gain
knowledge from it. (SulaimanAinin, Farzana Parveen, Sedigheh Moghavvemi, Noor Ismawati
Jaafar, Nor Liyana Mohd Shuib), (2015)
The essential success factor for the small business is good customer relationship that is
accommodated by social media. Expertise within the organization could share their ideas,

21

opinions and knowledge based on the queries of their customers via the social media (Schaffer,
2013).
Informational trust is defined as a users belief about the reliability, credibility and accuracy of
information obtained from Face book and is an important factor that influence usage (Chai et al.,
2011).
Papacharissi and Rubin (2000) had a construct called convenience for internet users and Koet al.
(2005) had a convenience motivation factor for interactive advertising. Korgaonkar and Wolin
(1999) also had the word convenience in some of their scale items such as enjoy the
convenience of shopping on the web.
2.6 Research Gap

After going through the articles, the conclusion drawn was that consumer perception of SMEs is
affected by trust of the medium, convenience, information available and customer relationship
management. Users consider those businesses more on social media which give out the right
information and who are seen as reliable and trustworthy and have a good reputation.
The result of the literature review showed a positive relationship between all the various
variables: researches on social media have been conducted in various countries and how it
impacts them in various ways and this has shown a positive relationship which is important and
determines if the consumer is going to buy from that SME or actually go offline to shop.
Chapter summary
After going through the literature review, we concluded that various factors affect a consumers
perception towards the SMEs but mostly researches have been done out of Pakistan. Our
research has been conducted in Karachi, Pakistan and it reveals the result on how consumer
perception is affected and influenced towards SMEs.

22

23

Chapter 3 Research Methodology

3.1 Research Design

The study made use of quantitative research methods as well as qualitative and the research
design that was used is descriptive.
The philosophy in our research proposed that based upon the positivist and interpretivism theory,
we deduced from the factors that if consumer perceptions tend to fluctuate depending on the size
of the SME, it affects their behavior online. We used a deductive approach for our study as the
underline variables had already been tested before on different theories and we found a
relationship between all the variables with respect to your consumer perception in the online
SMEs industry.
We used the survey method as our strategy and went with the multiple mixed methods as well as
used quantitative and qualitative methods for our longitudinal study and gathered our data over a
due course of time.
We collected our data from respondents and got our questionnaires filled out and conducted
focus groups from our target audience.
3.2 Procedure

This study was conducted by assessing the consumer perception towards online shopping
through a questionnaire and focus group. Firstly we got online questionnaire filled out by online
purchasers and the results were analyzed. We also held focus groups to get further insights and to
gauge the relationships presented in our hypothesis.
3.3 Population

The population of our study consisted of all the social media users of Pakistan who have
purchased products through Face book, Twitter, etc. For our research, we focused on social
media users who were in the age bracket of 16 to 45 and belonged to SEC A and B and upper C.
This is because people who fall in this category are mostly active on social media and often
make online purchases.
3.4 Sample and Sampling Method
24

According to international researches conducted on Pakistans social media usage, 13.4 million
Pakistanis are active on social media websites. A large chunk of these users come from the
largest and the most populous city of Pakistan which is Karachi. To come up with our sample
size of 384 we referred to the sample size formulas which were addressed in an article by Gang
Xutitled Estimating sample size for a descriptive study in quantitative research in the July
1999 issue of Quirk journal. The article had a table which we have referred to. According to the
article in business researches the confidence interval is taken as 95% and the margin of error is
taken to be 5%. Based on this according to the table any population of 1 million or above has a
sample of 384. This is how we came up at our sample size of 384.
The sampling method that was employed in this research is convenience sampling. We used this
method because it was easy for us to get the online questionnaires filled by our acquaintances
and we were able to ascertain that they are part of the relevant population who we had
considered for our research.

3.5 Measurement / Instrument Selection

Primary data was collected through a structured questionnaire and focus groups.
The questionnaire was designed with the help of other relevant past researches and our variables.
To make sure that the questionnaire was valid and effective, we conducted pilot testing on 30
respondents. That helped us in identifying any issues that were present in the questionnaire and
we replaced and edited the questionnaire accordingly.
The focus groups consisted of 10 social media users per group who belonged to SEC A, B and
upper C in the age bracket of 16 to 45 and made online purchases. People who met these criteria
were selected by us on the basis of convenience. The aim of the focus group was to further get
insights from consumers and check any relationship between the variables that had not been fully
analyzed in the questionnaire.
Secondary data was collected by reviewing relevant past researches on the topic as well as
articles and journals.
3.6 Variables
25

Conceptual Frame work

*Papacharissi and Rubin (2000), (Chai et al., 2011),(SulaimanAinin et.al 2015)

Definition of Variable of Framework

In SMEs context, organizations post lot of information about their organization, products,
services and other promotional activities and also obtain information from Facebook and gain
knowledge from it. (SulaimanAinin, FarzanaParveen ,SedighehMoghavvemi , Noor
IsmawatiJaafar , Nor LiyanaMohdShuib), (2015)
The essentialsuccess factor for the small business is good customer relationship that is
accommodated by social media. Expertise within the organization could share their ideas,
opinions and knowledge based on the queries of their customers via the social media (Schaffer,
2013).
Informational trust isdefined as a users belief about the reliability, credibility and accuracy of
information obtained from Facebook and is an important factor that influence usage (Chai et al.,
2011).
Papacharissi and Rubin (2000) had a construct called convenience for internet users and Koet al.
(2005) had a convenience motivation factor for interactive advertising. Korgaonkar and Wolin
(1999) also had the word convenience in some of their scale items such as enjoy the
convenience of shopping on the web.
26

3.7 Hypothesis

H1: Convenience has a significant correlation with consumer perception towards online SMEs
H2: Trust has a significant correlation with consumer perception towards online SMEs
H3: Customer relationship management has a significant correlation with consumer perception
towards online SMEs
H4: Available information has a significant correlation with consumer perception towards online
SMEs
H5: Convenience has a significant influence on consumer perception towards online SMEs
H6: Trust has a significant influence on consumer perception towards online SMEs
H7: Customer relationship management has a significant influence on consumer perception
towards online SMEs
H8: Available information has a significant influence on consumer perception towards online
SMEs.
3.8 Plan of Analysis:

a. Frequency circulation - To find out information and analyze the demographics on which
the research was based upon.
b. Cross Tabulation- To have a vast understanding of the information which was available to
use and was divided into classifications.
c. Descriptive analysis To analyze each stage of the study and comprehend it in a
meaningful way
d. Correlation To check if there was a relationship between the various variables used in
the study.
e. Regression To check any variety in the study and if it was reliant or not.

3. 9 Software employed

Microsoft Excel and SPSS were used to analyze the data and the findings were presented through
a report in Microsoft Word.
27

3.10 Validity and reliability

We conducted a pilot test of our questionnaires; the pilot survey was conducted on 19 people
through the concept of Face Validity, where they were asked to identify what the questions
signify and if they were able to relate to it and analyzed the results. After the results were
analyzed, we saw that our pilot testing was considerably valid and reliable to test it on our
sample size.

Analysis
4.0 Quantitative Analysis

To carry out the research and test the hypothesis, we developed a closed ended questionnaire to
perform quantitative analysis with sample of 384. Moreover, we used Statistical Analysis
Software Package (SPSS) to analyze the results of the study. The questionnaire was designed to
discover whether social media actually influences a consumers perception regarding small and
medium enterprises that use social media as way to promote themselves and influence users to
buy their product/service.
For the evaluation of internal consistency and homogeneousness in variables, Cronbachs Alpha
was calculated. The results of which are:
4.1 Reliability

Basically this research is inspired and based on the framework of past studies, which is why the
variables in the questionnaires are also derived from base study as well as complementing
studies. To ensure reliability, our research was checked via pilot testing. This was done with a
sample of fifteen participants, which resulted in 0.95 using SPSS software. The result concluded
that the research was heading in the right direction and with very high note. Moreover, we
calculated Cronbachs Alpha using SPSS statistical software. Proceeding with the study, we
conducted the test on the final data. The outcome was 0.93, suggesting that the items have
relatively high internal consistency. Moreover, there is high relatedness and dimensionality affect
among the fifteen items and are homogenous construct.

28

Reliability Statistics
Cronbach's

N of Items

Alpha
.931

4.2 Demographic analysis:

A survey was conducted to carry out the research for the proposed topic with a close ended
questionnaire in an attempt to gauge the response from a sample of 384 people in order to
identify the relation between the factors to use a social media platform to purchase a product
online and how it impacts the perception of the consumers and what are the insights to these
particular factors (independent variable) is then further gauged by qualitative focus groups. The
quantitative data was assessed through statistical inferences & cross tabulations whereas the
qualitative analysis has been conducted through the defined coding system.
The detailed quantitative analysis is mentioned below:

Gender

Frequen

Percent

Details

cy

age

Male

297

78%

The survey of 383 respondents included

Female

86

22%

78% males and 22% females.

AGE

Frequen

Percent

Details

cy

age

21-25

234

61%

Age group of our respondents was divided

26-30

65

17%

amongst ages 16-20 years, 21-25 years,

29

84

30 above

22%

26-30 and 30 above. No respondents were

from the 16-20 years age group, 21-25
years, 26-30 years and 30 years above
recorded 61%, 17% and 22% respectively.

Frequenc

Percent

age

Student

96

25%

Most

JOB

237

62%

employees

Businessperson

50

13%

respectively,

Occupation

Details
of

the

people

and

were

which

were

salaried

doing

shows

jobs
higher

trend towards the older age group in

this study.

4.3 Cross tabulation:

Yes
Frequency
Online
purchase

No
Percentage

Analysis

Frequency Percentage
All

384

100

the

384

respondents

have

somehow or the other used online

mediums to purchase a product.

30

Online purchase
Gender

Yes

No

Analysis

Male

297

When segregating on gender basis

Female

86

there were 297 males who have

marked yes to this question while the
females were 86.

Product bought online

Frequency

Percentage

Analysis

Clothes

84

22

Around 22% of the respondents had

Shoes

73

19

bought clothes online

Books

34

products followed by shoes which were

Food

61

16

19% and surprisingly food had been

Toys

11

consumed through online purchases by

Jewelry

22

only 16% of the sample.

Computer

84

22

11

& computer

products

Cosmetics

Social media website usage (daily)

Facebook

Frequency

Percentage

Analysis

360

94

Out of 384 respondents all those who use

Facebook daily were 94% of the sample.

Micro blogging 24

While 6% of the sample population marked

twitter as their daily use of social media.

Type of social media platform used for purchase

Facebook
(Social

media

networking

Frequency

Percentage

Analysis

214

56

Out of the 384 respondents 56% of the sample

used Facebook to purchase an online product
through a social media platform whereas 5%
31

sites)

used blogs and forums.

Blogs/Forum 19

s
Others

149

39

4.4 Descriptive

N
Convenience
Trust
Information
CRM
Perception
Valid N (list wise)

384
384
384
384
384
384

Descriptive Statistics
Minimum
Maximum

Mean

Std. Deviation

1
1
1
1
1

3.52
2.97
3.28
3.57
3.58

.951
.983
.980
.975
.917

5
4
5
5
5

In order to get a descriptive insights from respondents with regards to constructs included in
questionnaire, our survey incorporated some questions designed on Likert Scale. The scale was
based on 5 points with values ranging in between 1 to 5; with 1 being strongly agreed and 5
being strongly disagree. It can be seen that the mean value of all of the variants is in between
range of 1 to 3; which provides with information that majority of respondents agreed and
supported the given statements.
4.5 Correlation

Following are the correlation analysis of the variables namely Convenience, Trust, Information,
CRM and Perception. The results concluded that all the variables are positively correlated,
signifying strong and positive relationship between the said constructs. Furthermore it was
determined that perception was strongly correlated to influencing the consumers. Only trust had
an acceptable correlation, while information and CRM also had strong correlation.
Variables

Convenie

Trust

nce
Convenie

Pearson

nce

Correlation

Informati

CRM

on
.558**

.792**

Percepti
on

.782**

.856**

32

Trust

Sig. (2-tailed)
Pearson

.558**

Informati

Correlation
Sig. (2-tailed)
Pearson

CRM

Correlation
Sig. (2-tailed)
Pearson

Perceptio

Correlation
Sig. (2-tailed)
Pearson

on

Correlation
Sig. (2-tailed)

0.000
1

0.000
.682**

0.000
.

0.000
.620**

0.000
.792**

0.000
1

693**
0.000
.

0.000
.749**

0.000
.782**

682**
0.000
.

.679**

679**
0.000
1

0.000
.913**

0.000
.856**

693**
0.000
.

0.000
.749**

0.000
1

0.000

620**
0.000

0.000

913**
0.000

**. Correlation is significant at the 0.01 level (2-tailed).

The correlation analysis justifies and approves our research questions given below:
1. Is it convenient to purchase products from online mediums?
Users find it easier to purchase products from social media platforms as compared to offline
shopping as it not only gives them free time to do other stuff but they avoid traffic and rush
while shopping in the comfort of their home.

2. Do users actually believe the information shared on social media?

Our second research question was very vital because there is vast knowledge on the internet. It is
very important to filter all the information from forged and factual. Consumers sometimes
disregard all the information, if consumer suspects that it is deliberate information. Thus
consumers tend to rely on more on reviews then information provided by organizations.
3. Do users trust social media as compared to other forms of marketing?

Trust is a very important factor for buyer and seller on social media. If trust does not develop, the
SMEs will lose their customer. Due to which some of the respondents were hesitant to purchase
new products from a new source. As its very risky to purchase a product from anun-trustworthy
source. Furthermore there will be no guarantee that the product will be 100% original.
Additionally, if you may require returning the product, there are very limited options present at
the moment for such concerns.
4. To analyze if customers relationship management form a perception
when customers buy online?
33

Consumers tend to analyze and search for reviews and how the whole process of purchasing was
handled by the business and then through word of mouth or social media they tend to inform
their peers/colleagues/family/friends
4.6 Regression
Model Summary
Mode
l

R
.

Adjusted

R Std.

Error

Square Square

Estimate

.892

.303

.891

of

the

944
a

a. Predictors: (Constant), CRM, Information, Trust, Convenience

Coefficientsa
Unstandardized Coefficients

Standardized Coefficients

Std. Error

Beta

.230

.063

Convenience .262

.033

.272

7.954 .000

-.086

.025

-.092

-3.477 .001

Information

.134

.030

.143

4.522 .000

CRM

.627

.030

.667

21.208 .000

Model
(Constant)

1 Trust

Sig.

3.634 .000

a. Dependent Variable: Perception

After performing Regression Analysis in SPSS software, it was profoundly noticeable that all the
variables (Convenience, Trust, Information and CRM) were key influencer in the decision
making for purchasing. The regression evaluated value of adjusted R square to be at 0.89;
consequently proving that 89% variation in decision was due to the suggested variables.
Results from regression are found to be significant as p values are near to zero, which denotes
that independent variables carry a high impact on dependent variables in this case. The value of
34

impact of each independent variable individually is signified by Beta coefficient and the t value
of almost each variable with zero p value indicates that parameters have negligible chances of
being zero.
Regression equation found from test is given hereby:
Influence on consumers perception = -0.230 + (Convenience x 0.272) +
(Trust x -0.092) + (Information x 0.143) + (CRM x 0.667)
4.7ANOVA/T-test
ANOVAa
Model

Sum

of df

Squares

Mean

Sig.

Square

Regression 287.125

71.781

Residual

34.858

379

.092

Total

321.984

383

780.447 .000b

a. Dependent Variable: Perception

b. Predictors: (Constant), CRM, Information, Trust, Convenience

The value of p being < 0.05 denotes a high level of significance between variables and it can be
inferred that there might be an impact on Perception due to name Convenience, Trust,
Information and CRM.
4.11 Discussion

From the detailed analysis conducted on the defined sample population using
cross tabulations, statistical inferences & axial coding we were able to
identify and study the depth of the factors identified through the available
literature. It was observed from the cross tabulated data that people usually
use face book the most during their daily lives and the fact that they use
face book only the most to buy a certain product online. Further on it was
concluded that people tend to buy clothes and computer products through
35

online mediums the most followed by other categories such as food, toys,
books etc. The correlation shows a strong relationship between convenience,
CRM, information and consumer perception whereas the trust factors
correlation was in acceptable range with consumer perception. As far as the
regression

analysis

is

concerned

the

convenience,

CRM,

trust

and

information aspect have significant impact on consumer perception.

However, a shift in consumer perception by 1 unit will bring in a -0.86 impact
on trust, which can be defined by the fact that if consumer perception of
their prior experience is favorable the lesser they trust that particular
transaction. The qualitative analysis helped us to explore into insights into
the factors other than what we identified through the literature.
Taking the convenience factor in consideration, there were a couple of
questions in the questionnaire to gauge the relation & impact of convenience
towards

consumer

perception.

There

was

strong

relationship

in

convenience and consumer perception and a significant impact between the

two. That is, people do form the opinion that it is easy & convenient to
purchase a product through online social media platforms. According to the
literature identified from the secondary data businesses do understand the
importance of having an online presence while how convenient it is for
consumers to make purchasing decision through social media and how much
importance should they lay on this aspect can be clearly assessed through
our analysis.
With respect to the trust aspect of our research, there was a positive
relationship but in acceptable range and a significant impact of trust and
consumer perception. However when we study the beta value of the trust
factor, it can be assessed that a single unit of change in consumer
perception will bring in a negative change in the beta value of trust or it can
be said that it negatively impacts the trust aspect. In simple words the more
people form a perception about them buying from a face book page the less
likely it is possible for them to trust the credibility of that transaction. Thus
36

relation and impact is there however a change in perception impacts trust

negatively.
There was a strong relation and a significant impact of customer relationship
management

factor

and

consumer

perception

which

influences

the

perception of a person when he/she purchase a product online through social

media. Thus it can be said that it is easier to interact and communicate when
a person buys a product online, both for the business and the customer.
There was a strong relation and a significant impact of information factor and
consumer perception when a person purchase a product online. This means
that people do look out for clear information when they tend to buy products
through social media.
As far as the qualitative analysis is concerned, it helped us to explore into
insights into the factors other than what we identified through the literature.
The major ones that were identified through the focus group were the ease of
availability and company image aiding consumer perception when theyre
buying a product online and how they impact the process of online buying
which has been identified through the aforementioned axial coding.

37

5. Conclusion:
The core idea of this study lies in the concept of using social media to
purchase a particular product. The aim of our research was to identify how
does social media influences consumer perception when they purchase
through online Smes (facebook page) and to understand the relationship
between the two. For the aforementioned tasks a quantitative analysis was
conducted where as to gain further insights to the factors which one person
has in mind when he/she purchases through online SMEs, a qualitative
analysis was conducted.
Through the survey which was conducted on a sample size of 384 people, it
was analyzed that all four variables have high or moderate relation with
consumer perceptions. However the trust factor when a person buys through
online smes relation is in an acceptable range. As far as the regression
implication is concerned the convenience, CRM, trust and information aspect
have significant impact on consumer perception. However, a shift in
consumer perception by 1 unit will bring in a -0.86 impact on trust, which can
be defined by the fact that if consumer perception of their prior experience is
favorable the lesser they trust that particular transaction. Through the
qualitative analysis of focus groups we are able to gain insights as to what
entices a person to purchase a product from an online facebook page and
why. The insights that we gained other than the four factors identified
through literature include the company image and the ease of availability
aspect which a person consider when purchasing a product through online
means.
This analysis provides useful insight to entrepreneurs & business owners as
well as for the customers. For entrepreneurs this analysis would provide a
strong base to consider the facts to start a business online. For those
businesses who want to take their offline business online this research would
38

help them to find a competitive edge and factors to consider before

introducing their business in the online community. This research would
influence those consumer who prefer to buy product through conventional
means failing to see the advantages of online buying.

39

6. Recommendations:
Relying on the survey analysis and insights gained from the focus group, we
would like to propose the following recommendations for the relevant
stakeholders of this report(entrepreneurs willing to start an online business,
established business wishing to take their offline business online and the
consumers).:

Companies and entrepreneurs can take into account the insights from
this research to either start a business online or take offline business
online in an attempt to improve or frame their core business strategy

accordingly.
Companies can identify the core competence and can easily focus on

which particular aspect to focus on in order to be successful online.

Businesses can frame their marketing strategies as they would know
which factor have they focused on before coming up with the idea of
an online enterprise and can aim to position itself in the mind of the

customers accordingly.
Firms need to lay more importance on focusing on either one or all the
factors in order to flourish their business online.

40

Chapter 7 - References
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10.Maria Vernuccio, Department of Management, Sapienza University of Rome,

Via
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Castro
Laurenziano
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00161,
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Email: maria.vernuccio@uniroma1.it

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43

Chapter 8 Appendix
Questionnaire

On
Influence of Social Media on Consumer Perception towards online Small and Medium Enterprises
(SMEs)
1. Gender:
Male
Female
2. Age:
16-20

21-25

26-30

30 above

3. Occupation:
Student

Job

Businessperso
n

Housewife

Not working

4. Have you purchased a product from an online store?(Purchase means

your product has also been delivered)
Yes
No
Please do not proceed further if you have not made an online purchase
before.
5. When you say you bought a product online, what product did you buy?(You
can tick more than one option)
Clothe
s

Shoes

Books

Food

Toys

Jewelr
y

Furnitu
re

Comput
er
product
s

Cosmeti
cs

Other

6. Which of the following social media sites you are using on a daily basis?
Social
networking
sites (Face
book)

Micro blogging
(Twitter)

Blogs/Forum

Instagram

Others

44

7. Which Form of social media did you use for the purchase?
Social
networking
sites (Face
book)

Micro blogging
(Twitter)

Blogs/Forum

Instagram

Others

Convenience in this context is the ease with which a customer is able to make a
purchase (includes both pre & post purchase delivery aspect)
Stron
Questions

1
2
3

gly

Disagr

Neutr

Agre

Disagr

ee

al

ee
1

Stron
gly
Agree
5

Do agree that it is easier for people to search &

order online?
Do you agree that information searching
(differentiating b/w products) is easier through
social media?
Would you agree that ordering through social media
is more convenient than the traditional methods of
purchase?

Trust in this context is the amount of credibility people have on social media if they
want to purchase anything (includes both pre & post purchase delivery aspect)
Stron
Questions

1
2
3

gly

Disagr

Neutr

Agre

Disagr

ee

al

ee
1

Strong
ly
Agree
5

Do you agree that product & delivery claims made

on Facebook pages are reliable?
Do you agree that you have trust on the quality of
the product being purchased, as you cant touch the
product unless it is purchased?
Do you think product information & after sales
service on social media have a higher credibility as
compared to other mediums?

Information in this context is the level of information that is present on social

media in order for customers to make a purchase (Includes only pre-purchase
aspect).
Stron
Questions

1
2

gly

Disagr

Neutr

Agre

Disagr

ee

al

ee
1

Strong
ly
Agree
5

Do you agree that with the social media sites, you

are able to seek out products/services information
completely?
Do you agree that the amount of information

45

provided is sufficient to make the purchase through

social media?

Customer Relationship Management is the pre and post purchase exchange

between the customers & online retailers.
Stron
Questions

1
2

gly

Disagr

Neutr

Agre

Disagr

ee

al

ee
1

Strong
ly
Agree
5

Do you agree that communicating with the

company & with its customers is most suitable
when it comes to purchasing through social media?
Do you agree that feedbacks
(reviews/comments/posts and so on) on social
media affect your purchase?
Do you agree that social media provides an
effective and powerful platform for consumers to
communicate with each other and with the
companies?

Consumer Perception is the receptivity of consumers of buying through social

media.
Stron
Questions

1
2
3

gly

Disagr

Neutr

Agre

Disagr

ee

al

ee
1

Strong
ly
Agree
5

Do you agree that it is more convenient to order

online?
Are you likely to trust a certain brand or product or
service after you have read positive
comments/reviews/online articles etc about it?
Do you agree that, for instance,
advertisements/blog posts/ FB pages/user reviews
on social media influences you?
Do you agree that information inflow about products
aid in making a purchase?

46

47