THE IMPACT OF SOCIAL MEDIA MARKETING OF E- RETAILING COMPANIES ON THE BUYING BEHAVIOR OF CONSUMERS WITH REFERENCE TO AGE GROUP OF 18-40 YEARS IN NAVI MUMBAI. Thesis submitted to the D.Y. Patil University, Navi Mumbai School of Management In Partial Fulfillment of the requirements for The award of the degree of Master of Philosophy (M.Phil.) in Business Management Submitted by MRS. DEEPIKA JINDOLIYA ENROLLMENT NO.: DYP-MPhil-01460900002 Research Guide Professor Dr. R. Gopal Director & Head of the Department D.Y. Patil University, School of Management, Sector 4, Plot No. 10,CBD Belapur, Navi Mumbai – 400614 March 2017. I The Impact of Social Media Marketing of E- retailing Companies on the Buying Behavior of Consumers With Reference to Age Group of 18- 40 Years in Navi Mumbai II Declaration I hereby declare that the dissertation entitled ― THE IMPACT OF SOCIAL MEDIA MARKETING BY E-RETAILING COMPANIES ON THE BUYING BEHAVIOUR OF CONSUMERS WITH REFERENCE TO AGE GROUP 18- 40 YEARS IN NAVI MUMBAI‖ Submitted for the Award of Master of Philosophy in Business Management at the D.Y. Patil University, School of Management is my original work and the dissertation has not formed the basis for the award of any degree, associate-ship, fellowship or any other similar titles. The material borrowed from other sources and incorporated in the dissertation has been duly acknowledge. I understand that I myself could be held responsible and accountable for plagiarism, if any, detected later on. The research papers published based on the research conducted out of the course of the study are also based on the study and not borrowed from other sources. Date: Signature of student Place: Enrolment number: DYP-MPHIL-01460900002 III Certificate This is to Certify that the thesis entitled ―IMPACT OF SOCIAL MEDIA MARKETING BY E-RETAILING COMPANIES ON THE BUYING BEHAVIOUR OF CONSUMERS WITH REFERENCE TO AGE GROUP OF 18-40 YEARS IN NAVI MUMBAI‖ is a Bonafide Research Work carried out by Mrs.Deepika Jindoliya in partial fulfillment of the requirements for the award of the Degree of Masters of Philosophy in Business Management and that the thesis has not formed the basis for the award of any Degree, Diploma, Associate-ship, Fellowship or any other similar titles of any University or Institution. Also it is certified that the thesis represents an independent work on the part of the candidate. Place: Navi Mumbai Date: Signature of Director and Head of Department Signature of Guide IV ACKNOWLEDGEMENT I am grateful to D.Y.Patil University, School of Management for having given me an opportunity of career enhancement by carrying out the current research work. I am extremely thankful to my guide, mentor, philosopher Professor Dr. R. Gopal for having guided me with his valuable inputs and extending all his support throughout my research work. Without his able and valuable guidance this would not have been possible. I am immensely indebted to Dr.R. Gopal for ensuring the right direction and output of the research process. I would like to convey my gratitude to Dr. Pradeep Manjrekar, Dr. M. Mariappan and Dr. Sachin Deshmukh for their guidance, advice and encouragement during the course work and paper publications. I would also like to thank Mr. Sameer Yadav, Mr. Sandeep Surve, Ms. Vandna Salgaonkar and the administration staff of DY Patil University for helping me wherever needed. I would also like to thank all the faculty members for their valuable inputs. I sincerely thank my mother, father and brothers for their limitless support. I would also like to convey a special thanks to my husband for always being a source of encouragement to me. Lastly I also thank everyone who has been directly and indirectly instrumental in the completion of my dissertation. Place : Navi Mumbai. Deepika Jindoliya Date : M.Phil. Enrolment number: DYP-MPH01460900002 V Table of Content Chapter No. Title Page No. Cover Page I Title II Declaration III Certificate IV Acknowledgement V Table Of Content VI List Of Abbreviations VIII List Of Tables IX List Of Figures XIX Executive Summary XXI 1 Introduction 1. 2. Literature Review & Research Gap 19 3. Objectives, Hypotheses &Research Methodology 56 4. Social Media 61 5. Consumer Behaviour 94 6. E-Retailing 103 7. Data Analysis 109 8. Findings and Conclusions 181 9. Recommendations 184 10. Annexure 187 Bibiliography 187 VI Webliography 193 Questionnaire 195 VII List of Abbreviations S.no. Abbreviations Full Form 1 ASSOCHAM Associated Chambers of Commerce and Industry of India 2 BPI Business Performance Indicator 3 CPC Cost Per Click 4 CRM Customer Relationship Management 5 CAGR Compounded Annual Growth Rate 6 EBITD Earning Before Interest, Taxes and Depreciation 7 E-WOM Electronic Word OF Mouth 8 FB Facebook 9 IMC Integrated Marketing Communication 10 Li Linkedin 11 MAU Monthly Active Users 12 MNC Multi Nation Company 13 SE Search Engine 14 SM Social Media 15 SMM Social Media Marketing 16 SNS Social Networking Sites 17 Twt Twitter 18 USD United States Dollar 19 WOM Word Of Mouth 20 YT YouTube VIII List of Tables Table Details Page Number number 1. Type of information associated with questions 59 2. Calculation of sample size 60 3. Types of consumer behavior 95 4. Agreement level of respondents on the statements 110 about the impact of social media marketing on buying behavior 5. Binomial test to analyse responses on ―impact of social 110 media marketing‖ 6. Structural Equation Model to analyse ―impact of SMM‖ 111 7. Responses to rate social media as a marketing tool 111 8. Chi-Square test result to analyse responses to rate SM 112 as a marketing tool 9. Response on using social media account to log into e- 112 retail websites 10 Chi-Square test to analyse use of social media to login 112 e-retail website 11 Responses on whether the respondents login to e- 113 retailers website via their social media account 12. Chi-Square test for analyzing responses on whether the 113 respondents login to e-retailers website via their social media account. 13. Reason of purchasing from e-retailers via social media 113 account 14 Chi-Square test to analyse the responses on reason of 114 purchasing from e-retailers via social media account 15 Level of agreement on the statement that respondents 114 had no plan of purchasing anything but end up purchasing a product on seeing advertisement on social IX media 16 Chi-Square test to analyse the response that 114 respondents end up purchasing a product on seeing advertisement on social media although there was no prior plan 17 Percentage of respondents using different social media 115 websites 18 Marascuillo procedure to compare more than two 116 proportions for use of different social media websites 19 Table on whether the ads on given SNSs are attractive 117 and appealing 20 Table on whether the offers and images on given SNSs 118 are genuine and correlate to actual product. 21. Table regarding respondent‘s intention of future 119 purchase after seeing advertisement on given smns 22. Table of basic data distribution according to gender 120 23 Table of level of agreement of respondents(gender- 121 wise) with the statement whether they are frequent users of social media 24 Chi-Square Tests to analyse the relationship between 121 gender and use of social media 25 Level of agreement of respondents(gender- wise) with 121 the statement whether availability of social media has made them more informed about brands 26 Chi Square Test for analyzing the relationship between 122 gender and ability of social media to make respondents more informed about brands 27 Level of agreement of respondents(gender- wise) with 122 the statement whether they are more likely to respond to social media marketing than traditional media 28 Chi Square test to analyse relationship between gender 123 and ability of social media to extract response from customers X 29 Level of agreement of respondents (gender- wise) with 123 the statement whether they are more exposed to marketing communication as a result of increased social media use 30 Chi-Square test to analyse the relationship between 123 gender and increased exposure to marketing communication due to social media 31 Level of agreement of respondents(gender- wise) with 124 the statement whether they are more likely to purchase a product before launch due to extensive promotion on social media 32 Chi-Square test for relationship between gender and 124 respondent‘s likelihood to purchase product prior to launch as a result of promotion on social media 33 Level of agreement of respondents(gender- wise) with 125 the statement whether social media provide effective two way communication between buyer and e-retailer 34 Chi-square test for analyzing relationship between 125 gender and ability of social media to serve as an effective two way communication channel between respondents and e-retailers 35 Level of agreement of respondents(gender- wise) with 126 the statement whether the information spread via social media has lasting impact on perception of customer 36 Chi-square test for analyzing the relationship between 126 gender and ability of social media to have a lasting effect on respondent‘s perception 37 Table for Rating social media as a means of marketing 127 for E-Retailers as per gender. 38 Chi-square test for analyzing relationship between 127 gender and effectiveness of social media as a marketing tool 39 Basic data distribution according to education 128 XI 40 Education-wise Responses to the statement whether 128 respondents are frequent users of social media 41 Chi-Square Test for analysing the relation between 129 education and frequency of use of social media 42 Education-wise Responses to the statement whether 129 availability of social media has made them more informed about brands.