The Role of Social Media

Chapter 1

INTRODUCTION

Rationale

The field of consumer behavior has ever fascinated many people ever since

the

beginning of ages that is according to (Bakewell and Mitchell, 2003). However, these

studies have demonstrated that the behavior of shopper is dynamic and

unpredictable as attested by (Jin and Kim, 2004). According to research conducted

in Lithuania, the study shows that the most crucial factor of consumer buying

behavior is shopping which is 38%, e-shop security which is 20% and e-shop

informativeness which is 44% (Vida Davidavicience et al., 2021).

Consumers reduced their consumption and wastefulness in crisis situation as

they become more careful in the decision-making process (Ang et al., 2000).

Research developed by (Arogoncillo and Orus, 2018) revealed that 40.0% of

consumers spend more money than planned, in physical stores compared to 25.0%

in online purchase.

Impulse Buying is defined as the act of purchasing something that an

individual had not meant to buy but proceeded with the purchase out of attraction. A

research conducted in the Philippines, according to responses, 43% of them have

medium impulsive inclination to purchase products and services without edegrate

planning. (Rename D. Azu et al., 2023).

 According to a research conducted in Panabo City, the overall mean level of

consumer buying behavior of the respondents is 3.88% with a standard deviation of

0.36%. This shows that the level of consumer buying behavior of the respondents is

evident, indicating that the respondents buying behavior as a customer is oftenly

observe (Joylyn Pintado et al., 2021)

Research Objectives

The study aimed to examine the mediating effect of Online Shopping in

response to the relationship between Buying Behavior among senior high school

students

1. To describe the level of Online Shopping in terms of:

1.1 Product risk

1.2 Convenience risk

1.3 Financial Risk

1.4 Non-delivery risk

2. To describe the level of Buying Behavior in terms of:

2.1 Impulse Buying

2.2 Influence of Window Display

2.3 Influence of in-store form/mannequin display

2.4 Influence of Floor Merchandising

2.5 Influence of Promotional Signage

3. To describe the level of Social Media

4. To determine the significant relationship between;

4.1 Online Shopping and Buying Behavior

4.2 Online Shopping and Social Media

4.3 Social Media and Buying Behavior

5. To determine the mediating effect of Social Media on the relationship of Online

Shopping and Buying Behavior

Hypotheses

The research hypothesis was tested at 0.05 level of

significance.

1. There is no significant relationship between the respondents’ level of Social Media

on Online Shopping and Buying Behavior.

2. There is no domain of Social Media that significantly affects the Buying Behavior

among senior high school students.

Review of Related Literature

The theories, ideas, and concepts of numerous authors contributing to this

study are examined in this chapter in order to offer a solid framework of references

on the variables being studied.

Online Shopping

In an article done by (Adamczyk G., 2021) entitled

“Compulsive and compensative buying among online shoppers: An emperical study”,

the findings provide light on the ways in which characteristics including online

shopping frequency, online shopping expenditures relative to offline shopping,

attitudes about online shopping, and socioeconomic status all play a role in this kind

of purchasing. Another article made by (Georgie N.A., 2021) titled as “The influence

of selected factors on online shopping behaviour: a study with respect to Kottoyam

district”, investigated the extent into which customer preferences plays a part in
determining a business’ fortunes. Online shopping, which uses the internet as a

sales channel, has a similar dilemma due to the diversity of opinions held by online

shoppers. According to (Shanthi and Desti, 2015) one hundred students from

Madras University and Madras Christian College were surveyed using a Structure

questionnaire to learn about their thoughts on internet shopping and the kinds of

products they like to purchase from these websites. The study found out that E-

commerce businesses may better serve their clientele by using customized

advertising strategies to bring in new customers to quickly encourage immediate

purchase.

Product Risk refers to the “perception that a product purchased may fail to

function as it was originally expected.” that is according to a study made by (Kim &

Rao, 2003). It was also defined as “the uncertainty and the consequences of a

product not functioning at some expected level.” in a thesis made by (Ward S. J.,

2008). It is also pertain to as “the possibility of product failure to meet the

performance of what is originally intended for.” in a research made by (Zheng L. et

al., 2012). In short, Product risk becomes the reason why many consumers do not

intend to make purchases over the internet, over 25% of consumers are anxious

about the product quality that may not meet their expectations. (Teo T., 2002).

Convenience risk is directly connected with the consumer’s mind when they

try to buy something on the internet. Some of the convenience risk is if the wrong

order is placed, it is very difficult to cancel the order. If somehow a consumer places

and order but has bad experience, then it has a very bad influence on their behavior.

In other words, it is a time loss for the buyers. It is about the risk that the purchased
product will take a lot of time and effort and adjust before it can be used (Bhatti et al.,

2018). According to research, most people do not know how to operate computers.

In Pakistan, only 1% of the people can operate computers due to the low education

and literacy rates. When consumers cannot find the right product, many problems

fears and treats will emerge in the consumer’s mind (Forysthe et al., 2006). In other

cases, almost 43% of the people face problems when placing their orders. They

cannot complete their orders due to the lack of awareness. This had caused irritation

to the consumers (Adnan, 2014).

Convenience risk incurred by some causes like consumer first search of a

particular product, then order said product and the product might be damaged before

reaching the actual buyer. Convenience risk also refers to the risk attached with the

goods that a buyer purchased such a product shipped to the other person, a lost of

goods or the goods damaged after the placement of the order (Claudia, 2012).

Research had stated that is based on consumer perception that the product might

arrive late and when the buyer received the product, it may be not have much worth

due to time wastage (Hsin Chang & Wen Chen, 2018).

One of the reasons of the decreasing online shopping transactions is

convenience risk. It was stated that there is need to study convinience risk with the

online shopping behavior in the future (Bhatti, 2018; Bhatti et al., 2018b).

Furthermore, some previous researchers investigated the influence of convenience

risk on internet buying behavior. Moreover, Convenience risk involved delays in

shipping or the wrong products being shipped (Qureshi, Fatima, & Sarwar, 2014).

Convenience risk occurs in online shopping after placing a particular order

then
consumer wait for that product and the product may be damaged or arrived late. It is

higher to happen on online buying as compared to the traditional buying (Frosythe et

al., 2006)

Financial risk refers to the loss in the monetary term associated with buying.

it is a loss of money in a bad purchasing experience. Financial risk is the first major

and big risk during buying online (Sinha & Singh, 2017). In addition, it is also the

strongest predictor of online shopping behavior. Financial risk plays a major role in

consumer decision making for buying online (Bhatti et al., 2018; Haider & Nasir,

2016)

Financial risk is a money loss that possibly the fraud of credit card and

discloses

card information that’s why people avoid buying online (Masoud, 2013; Sinha &

Singh, 2014). There is a lot of debate going on about the negative aspects of online

shopping, and financial risk is one of them. Financial risk plays an important role in

consumer decision making. This loss is termed as net loss of money. A negative

impact of financial risk on consumer online shopping has been proved by previous

literature. More often, people stop online shopping due to financial insecurities

(Masoud & Management, 2013).

Similarly found the relationship betwwen financial risk and internet shopping.

By using the Least Square method it was concluded that not just the financial risk but

other risks like social, time, and convenience risk are also negatively related to

online shopping (Pi & Sangruang, 2011)

Financial risk, is often also know as “economic risk”, is defined as the

“likelihood
of suffering a financial loss due to hidden or replacement costa as a result of the lack

of warranty or a faulty product” (Kiang et al., 2011). Price is the product element that

has been reported to play a significant role in a consumer’s purchasing decision and

as the monetary value of a product increases, so does the financial risk associated

with the purchase (Pappas, 2016).

When purchasing products online, the fundamental financial risk that

consumers perceive is often said to be related to security and privacy concerns

(Pantano, 2014). Concerns regarding security aspects (such as credit card fraud)

increase the reluctance of consumers to make online payments. Many generations

why consumers are cautious to shop online or to provide their personal information

online, due to fears of a lack of privacy and the possibility that their information will

be misused (Visa, 2012).

Non-delivery risk is a risk that involves failure that could result in the loss of

goods, the damage to the goodsand being shipped to incorrect place after confirming

their order (Dan and Kim, 2007). Also referred to as buys furnishing with the correct

updates on the shipment status, consumers should look forward to the arrival

schedule of the product, allowing customers to reduce their thoughts on

transportation and not being able to get their delivery (Masoud, 2013).

Non-delivery risk is one of the biggest worries when customers decided to buy

products online according (Dan et al., 2007). According to Naiyi Ye (2004) the

consumers are concerned with the delivery process, for example, the product may

get damaged during transportation, delivered to the wrong address, or in some

cases, delayed. (Claudia I. 2012) said that consumers fear about delivery will be
delayed due to various circumstances, such as the delivery company won’t deliver

the purchased products within the time frame agreed with customers.

Nowadays, people prefer to buy online due to technology than go to store

according to (Rahman, Khan, & lqbal, 2018)

Buying Behavior in a research work presented the idea of customer

satisfaction, defines condition of loyalty, described selected methods of customer

satisfaction measuring and presents international standards referring to customer

satisfaction measurement (Biesok G. et al., 2011). Buying behavior represents as the

outcome of the relative strengths of conflicting approach and escape behaviors

where it is determined by its own reinforcers (Alhadeff, 1982). However, the cognitive

perspective views buying behavior as a more voluntary, rational, and intentional in

nature rather as a mere response to the environment. People buy what they want

and their reasons for buying the products that they desire embraces “whatever

consideration induced, inclined, weighed with or decided them to buy” (Beck, 1975).

An economic indicator of the quality of economic output, calculation of the net

had presented that the value of their company’s customer base as an asset over

time information for strategic business applications; a predictor of consumer

spending and corporate earnings (Karolina Ilieska, 2013).

A study had considered that some changes can happen at any time, both in

the consumer and social psychological aspects and in consumer culture. This study

was aimed to investigate, analyze, and know in detail the influence of high-quality

products, service and trust to customer satisfaction and its impact on customer

loyalty in PT ABC Tbk felixible packaging division (Erry Rimwan et al., 2017).
 Impulse Buying, in recent years, the study of consumer behavior has been

marked by significant changes mainly in decision-making processes and

consequently in the influences of purchase intention (Stankevich, 2017). The

markets are different and characterized by an increased competition, as well as a

constant innovation in products and services available and a greater number of

companies in the same market. In this scenario, it is very important to know the

customer well (Varadarajan, 2020).

The study identified that there is positive relationship between consumer

characteristics i.e. gender, age, mood, shopping enjoyment, impulsive buying

tendency and impulsive buying behaviour of the consumers except materialism.

Product characteristics also have significant relationship with the consumers' impulse

buying behaviour (Srivastava Priyanka, 2012).

Examined the effect of perceived risks, service and infrastructural variables

and return policy on attitude of consumers towards online shopping. Impact of

domain specific innovative, subjective norms perceived behavioural control and

attitude towards the online shopping behaviour of the consumers (Moshref Javadi et

al., 2012).

Influence of Window Display, merchandising is one of the most important

aspects of marketing technique. (Cant et al., 2014) argues that the visual

merchandising consists of two main techniques: interior and exterior displays, known

as space design in retail, and Windows display. The display will be one of the

techniques used in visual merchandising. Display is a form of self-service sales of

goods. Displaying goods in stores and storefronts, has considerable influence on

sales. Self-service success in product depends on the layout or the layout of the
display. There is also a classification in the purpose of display as (1) Attracting the

attention of the consumers (2) Making the desire to enter the store and make a

purchase. It also stated that the window display not only display products, it also

displays the image of the store, so the window display should attract the attention of

prospective customers (Buchari Alma, 2014).

Store windows offer ample opportunities to do so near a potential purchase,

which makes them highly relevant for retailers in their pursuit of increased store

traffic (Ailawadi, Beauchamp, Donthu, Gauri, & Shankar, 2009).

Consequently, store window displays are commonly used to influence

consumers' perceptions of store and brand image and, ultimately, their decisions

about whether to enter a store (Edwards and Shackley, 1992, Oh and Petrie, 2012,

Sen et al., 2002). Still, little academic research documents these effects.

The extant literature on store windows suggests that the presence (Mower,

Kim,

& Childs, 2012) and size (Edwards & Shackley, 1992) of store windows determine

their ability to attract visitors to a store.

In terms of store window displays, research suggests that retailers have two

main concerns: what items to display and how to display them (Oh and Petrie, 2012,

Sen et al., 2002).

This argument is based on previous research that shows (a) consumers

primarily use store windows as inspiration (Oh and Petrie, 2012, Sen et al., 2002)

Consumers' mindsets are different when they are outside a store compared

with when they are inside a store (Lee and Ariely, 2006, Turley and Milliman, 2000).

Influence of in-store form/mannequin display, the main emphasis is

specified based on the two different variables discussed before: the structure of the

pathways (store layout) and the design of the shelves. In scientific research, there is

still a lot to examine in terms of shop layout and shelf design (Valenzual et al., 2013).

Mannequin is a model of the human body used by retailers to demonstrated

their products, designed especially to show how clothing items should be worn and

how it should sit on the body (Jain et al. ,2012). This is placed in windows of a store

to create cues that allow consumers to better visualize how clothes will took on their

body (Sen et al. ,2002). It was said that mannequins had generate a positive

response from consumer because it allows them to get a mental picture of the store

brand (Kerfoot et al., 2003).

However, using mannequins with natural body shapes can decrease the

perception that only a person with an ideal body shape is alternative and that

garments only look good on a person who is unrealistic size (Law et al., 2012).

Addition to that, people can envision themselves in outfits worn by mannequins only

if they can relate to the mannequin in short customers can't picture out their selves

wearing particular clothes because of they can't relate themselves to the mannequin

(Anitha and Selvaraj, 2016).

These mannequins were displayed in windows to attract customers into the

store. It tends to make customers put themselves into the display and imagine

themselves in the featured garments (Law et al., 2012).

(Neuhas, 2013) stated that money kings have an importance in connecting to

the customers.

Influence of Floor Merchandising has been accepted that the impact of the
form display, window display, promotional signage size of 250 Indian respondents

upon applying Pearson correlation. In any case, floor merchandising and shot brand

name are positively allied to consumer impulse buying behavior. The website’s

design elements and the product placement may significantly impact the customer”s

shopping decision (Bashar & Ahmed, 2012).

According to a well designed website company that the attractive product

placement can influence the customer’s buying behavior. In addition, the online

store’s verbal and visual information, including the product description and images,

can have an effect on customer’s attitudes and buying intention. As regards of user

protection, three main factors affect the customer experience: pleasure, arousal and

the readability. The degree of which customers find the online shopping experience

pleasurable and arousing the effect of their overall perception of the website and

influence the buying behavior.

Different emeperical studies and found that the store atmosphere has a strong

influence on consumer behavior, and store image. The study had further concluded

considering the emperical studies that the store atmosphere has a strong influence

on consumer consideration of the merchandise and arouse consumer reaction

towards the store. Impulse buying and store display are correlated. Floor

merchandising is also correlated with impulse buying (Groeppel-Klein, 2005).

Findings had suggested that window display, floor merchandising are

positively

correlated with impulse buying behavior of consumer. Store display is not correlated

with the impulse buying. Overall, the study proved that visual merchandising has a

greater impact on the consumer buying behavior (Bashar & Irshad, 2012).

The proper and effective visual merchandising including illumination helps in

differentiating the retail brand, contribute to brand preference and encourage the

brand preference (Park, 2014).

Customers are influence by attractive window displays, proper store layout,

and

appealing visual merchandising themes. (Pillai, 2014).

Influence of Promotional Signage, promotional signage is one of the best

ways to attract and communicate with the customers and it has to be clear so that it

is visible to the customers and also does not require a salesperson’s help (Mehta &

Chugan, 2013). Promotional signages plays an important role in making memorable

experiences to the customers and it has an impact on the impue lsive behavior of the

customers. Promotional signage is used as an advertisement and promotion to a

particular product. An effective promotional signage encourages customers to buy

products and services, it also educate the target audience about the market

presence and its offer. A well designed promotional signage can persuade large

amounts of customers and helps in growing the business and improvise brand and

identity while helping better sales (Roppa & Dr. Romesha, 2022).

In accordance to (Adams, 2022) when attracting shoppers to enter the store

and to convince them to buy products, sellers use various strategies from

advertisement, discount, prices etc. Face-to-face promotion is a form of practice that

caused buyers to know more characteristics and benefits of the product that is

presented in such a way that caused the influence to customers buying behavior.

Promotional signage is a business basic link to customers and aims to convey a

message or information to customers. Signage must communicate with customers

quickly and effectively by introducing themselves and their products and/or services

(Merugn & Vaddadi, 2017).

In the study of (Nyagba and Tsetim, 2022) it was stated that signage is one of

the techniques that influences the customer buying behavior and also it is stated that

there are various type of signage and one of it is promotional signage which informs

the customers about off price events or schemes and it helps to publicizes the

various promotional schemes that might be running in the store. Additionally, it is

also used in providing a short cut for communication about a product and also it is

the “silent salesperson” for retailers that reflect the correct brand image.

Theoretical Franework

This study is anchored of the theories of (Davis, Bagozzi and Warshaw, 1989)

which is Technology Acceptability Model, Theory of Planned Behavior by (Ajzen,

1991) and the Theory of Rational-Action by (Fishbeing and Ajzen, 1975).

Technology Acceptability Model, a model used to research fundamental

factors that drive users to adopt the new information system and accept it as well.

The theory is applicable to this research as social media (TAM-Model for technology

adoption) also helped consumers to take decisions without having to go to the

stores. This explains also that, although it is a comparatively modern networking

technology, people use social media or the internet for their advertising outreach

activities. Since social media (technology through technology acceptance model-

TAM) has assisted consumers in making purchasing decisions without having to go

to the shop, the theory is applicable to the research.

Theory of Planned Behavior, Ajzen’s theory of planned behaviour (TPB)

sets
the objective of performing an act, is what influences behaviour, subjective standards

and perceived compartmental strength. The theory also sought to explain all acts

which are influenced by people through their desires. Behavioral intent is a key

component of this model; behavioral intent is based on one’s attention to the likely

outcome of the action, and one’s subjective cost-benefit evaluation of that outcome.

Theory of Rational-Action is a model for the prediction of behavioral intent,

which involves predictions of attitude and actions. This was derived from previous

research which started with the theory of attitudes and progressed towards the study

of attitudes and behavior.

Conceptual Framework

Figure 1 shows the conceptual framework of the study. The independent variable is

peer support by the following indicators; Product risk, Convenience risk, financial

risk, and non-delivery risk. Perceived risk refers to the lack of information seen by the

buyer in purchase decision. Perceived products risk refers to the threat in consumers mind

about products that might not meet expectations and fail to perform an original function.

Convenience risk refers to the risk linked with individual’s perceptions who assume that

there will be issues in placing orders or delays in delivery of securities or in cancelling the

purchase. Financial risk refers to the loss in the monetary term associated with buying or a

loss of money in a bad purchasing experience. Lastly the Non- delivery risk refers to the

potential fail of delivery which caused by goods lost, goods damaged and they were sent to

the wrong place after confirmation of online order.

Figure 2 Product Risk is generally about purchased produces many tail product man

convent is tail to function as originally expected. Convenience risk is about consumer

perception of risks that the purchased product will take a lot of time and effort to
 repair and adjust before it can be used. Financial risk is the potential risk of perceive

loss on the financial side, where consumers are afraid of losing some money when

making payments in online shopping. Non-delivery risk defined as the potential tail of

delivery which caused by goods lost, goods damaged and they were sent to the

wrong place after confirmation of online order.

Figure 3 Social Media the means of interactions among people in which they create, share,
Customer Buying Behavior
and/orOnline Shopping
exchange information and ideas in virtual communities and networks
Impulse buying

Perceived products risk Influence of window display

Convenience risk Influence of in-store

Financial risk Mannequin display

Non-delivery risk Influence of floor merchandising

Influence of promotional signage

Social Media

Figure 1. Conceptual Framework of the Study

Significance of the study

 The result of this study will serve as a basis on which Senior High School

students may understand and embrace the importance of online shopping on buying

behavior. This study will help the individuals such as:

The findings of this research will help Senior High School Students

understand how online shopping has an impact on buying behavior. This research

could also help improve their own buying behavior when it comes to online shopping.

This study will also help future researchers who might make another research or

study of the same topic and this research will provide information and can serve as a

reference. They will get ideas on how online shopping has an impact on the buying

behavior of the customers.

Defintion of Terms

Online Shopping is a form of e-commerce which permits consumers to

directly

purchase goods or services from a seller by using the internet. Other names are e-

shop, e-store, Internet shop, web store, virtual store and online store. An online shop

arouses the physical similarity of buying products as well as services from internet

shop and this process of shopping is called business to consumer shopping (Amit

Kumar Singh and Malsawmi Sailo, 2013).

Buying Behavior is the study of how people buy, what they buy, when they

buy

and why they buy (Kotler, 1994). It is also the study “of the processes involved when

individuals or groups select, purchase, use, or dispose of products, services, ideas,

or experiences to satisfy needs and desires (Solomon et al., 1995).

 Social Media is the collection of tools and online spaces available to help

individuals and businesses to accelerate their information and communication needs

(Schultze, 2009). Also it is defined as web-based communication platforms that allow

users to easily connect with others and consume content (Aichner et al., 2021) .