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10.11 Hypothesis Testing: Correlation Between Social Media and It'S Impact in Consumer Marketing

This document analyzes the correlation between social media and its impact on consumer marketing. It tests three hypotheses using a Likert scale survey: 1) Social media impacts consumers' purchase decisions, 2) Social media induces impulse buying, and 3) Social media establishes personal connections through personalization. Cronbach's alpha tests show the survey questions reliably measure the three variables. T-tests and descriptive statistics provide strong evidence that social media does impact purchases, induce impulse buying, and create personal connections via personalization, leading to rejection of the null hypotheses.

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Mahima Sharma
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0% found this document useful (0 votes)
78 views

10.11 Hypothesis Testing: Correlation Between Social Media and It'S Impact in Consumer Marketing

This document analyzes the correlation between social media and its impact on consumer marketing. It tests three hypotheses using a Likert scale survey: 1) Social media impacts consumers' purchase decisions, 2) Social media induces impulse buying, and 3) Social media establishes personal connections through personalization. Cronbach's alpha tests show the survey questions reliably measure the three variables. T-tests and descriptive statistics provide strong evidence that social media does impact purchases, induce impulse buying, and create personal connections via personalization, leading to rejection of the null hypotheses.

Uploaded by

Mahima Sharma
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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10.

11 HYPOTHESIS TESTING

CORRELATION BETWEEN SOCIAL MEDIA AND IT’S IMPACT IN CONSUMER MARKETING


To determine the minimum and the maximum length of the 5-point Likert type scale, the
range is calculated by (5 − 1 = 4) then divided by five as it is the greatest value of the scale (4
÷ 5 = 0.80). Afterwards, number one which is the least value in the scale was added in order
to identify the maximum of this cell. The length of the cells is determined below:
 From 1 to 1.80 represents (strongly disagree).
 From 1.81 until 2.60 represents (do not agree).
 From 2.61 until 3.40 represents (true to some extent).
 From 3:41 until 4:20 represents (agree).
 From 4:21 until 5:00 represents (strongly agree).

QUESTION MEAN STANDARD ACTUAL EXPECTED


DEVIATION PERCEPTIO PERCEPTION
N
I refer to social media to check Agree
for reviews prior to making a
big purchase
Advertisements/blogs/reviews Agree
on social media influence my
decision in terms of trying out
a new product/brand
I change my initial purchase Agree
decision on the basis of the
information available on social
media

Table 30: Impact on Purchase Decision Analysis

QUESTION MEAN STANDARD ACTUAL EXPECTED


DEVIATION PERCEPTIO PERCEPTION
N
The advertisements displayed Agree
on my social media account
are personalised to suit my
interests
Social media helps brands Agree
establish a personal connect
with the customer and
strengthen the customer
relationship

The deals/offers displayed on Agree


social media are attractive and
more exclusive than what is
available on the usual websites

Table 31: Personalisation Aspect Analysis

QUESTION MEAN STANDARD ACTUAL EXPECTED


DEVIATION PERCEPTIO PERCEPTION
N
I often find myself browsing Agree
through products to buy when
all I intended to do was have a
leisure time scrolling through
the newsfeed on social media
Social media leads to impulse Agree
buying
In the recent past, I bought Agree
more than what was needed
because of an offer/deal I saw
on social media

Table 32: Impulse Buying Analysis

VARIABLES CRONBACH’S ALPHA SPECIFICATION


IMPACT ON THE PURCHASE 0.766 Acceptable
DECISION
SOCIAL MEDIA AND 0.768 Acceptable
PERSONALISATION
IMPULSE BUYING 0.694 Acceptable

Table 33: Reliability Analysis

By measuring the Cronbach alpha values, we have observed that the survey questions can
be combined for further analysis

Hypothesis 1:
H0 = Social Media has no impact on the consumers’ purchase decision
H1 = Social Media impacts the consumers’ purchase decision

One Sample T-Test              


95% Confidence
t=3           
Interval
Mean Effect
  t df p Lower Upper
difference Size
Social media impacts
the consumers’ 9.76 139 < .001 0.650 0.644 0.98 0.825
purchase decision

Table 34: Impact on purchase decision- T test

Std.
error Standard
N Mean mean Median deviation
Social media impacts the
consumers’ purchase decision 140 3.65 0.0666 3.67 0.788

Table 35: Impact on Purchase Decision- Descriptive

Hypothesis 2:
H0 = Social media does not induce impulse buying in the consumers
H1 = Social media induces impulse buying

One Sample T-Test              


95% Confidence
t=3           
Interval
Mean Effect
  t df p Lower Upper
difference Size
Social media induces
7.08 139 < .001 0.505 0.644 0.98 0.598
impulse buying

Table 36: Impulse Buying- T test

Std.
error Standard
N Mean mean Median deviation
Social media induces impulse
buying 140 3.50 0.0713 3.67 0.844
Table 37: Impulse buying- descriptive

Hypothesis 3:
H0 = Social media does not establish a personal connect via the personalisation aspect
H1 = Social media establishes a personal connect via the personalisation aspect

One Sample T-Test              


95% Confidence
t=3           
Interval
Mean Effect
  t df p Lower Upper
difference Size
Social media
establishes a personal
11.9 139 < .001 0.683 0.644 0.98 1.00
connect via
personalisation

Table 38: Personalisation Aspect- T test


Std.
error Standard
N Mean mean Median deviation
Social media establishes a personal
connect via personalisation 140 3.68 0.0576 3.68 0.681

Table 38: Personalisation Aspect- Descriptive


Inferences:
 Large t value and small value of p indicates high level of significance. As all the t values are
greater than 3, which means that the null hypothesis can be rejected and we can accept the
alternate Hypothesis. In each case, the Null Hypothesis is rejected and we can say that Social
media impacts the purchase decision, induces impulse buying and also creates a personal
connect via the personalisation aspect.
 The results presented in table of one sample statistics show the mean of populations
responses, standard deviation and standard error. Mean value provides the idea about the
central tendency of the values of available. Number of observations of each variable is 140.
Standard deviation gives the idea about the dispersion of the values of a variable from its
mean value. The minimum value is 1 while maximum value is 5.

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