ASSESSMENT FILE

Project work done as a requirement of Continuous Assessment of the course

IT SKILLS AND DATA ANALYSIS - II

IMPACT OF SOCIAL MEDIA MARKETING

Sem III, Second year

Session: 2024-25

Submitted by:
Kamiya Aggarwal (23335), Kush Agarwal(23339), Revant Kalra(23358), Somave Nath
Sawhney(23368), Khushali Mehta(23401)

Bachelor of Business Administration Financial Investment Analysis (BBA FIA)

Shaheed Sukhdev College of Business Studies

November 2024
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INTRODUCTION
Introduction to the Framework
In recent years, the rise of social media platforms has transformed the marketing landscape, positioning
social media marketing (SMM) as a pivotal tool for businesses to influence consumer mindsets and
behaviors. With billions of daily users on platforms like Facebook, Instagram, Twitter, and TikTok, the
relevance of effective SMM cannot be overstated. This study explores how SMM shapes brand
perception, purchase intent, and consumer engagement, providing insights into strategies businesses can
adopt to thrive in the digital age.

Social media offers brands an unparalleled opportunity to craft narratives and directly engage with
consumers. Tailored content, interactive posts, and real-time responses foster positive brand perceptions,
encouraging loyalty and a sense of community. A proactive social media presence enables brands to
resonate with their target audience, linking emotional connections to their identity.

SMM profoundly impacts purchase intent. Consumers often make purchasing decisions influenced by
social media interactions, such as influencer endorsements and peer reviews. The immediacy of social
media amplifies the effectiveness of promotions and product launches, driving impulse purchases and
enhancing sales.

Consumer engagement is another critical dimension of SMM. By utilizing interactive tools like polls,
contests, and user-generated content, brands establish two-way communication channels that strengthen
relationships with their audience. This engagement not only boosts visibility but also fosters a loyal
consumer base that actively advocates for the brand.

As social media usage grows, understanding its dynamics is vital for businesses in competitive markets.
This study delves into SMM's multifaceted effects and highlights strategies for leveraging its potential.
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Understanding Consumer Mindset

Consumer mindset refers to the psychological framework shaping how individuals perceive, evaluate,
and decide on products or services. It includes perceptions, attitudes, beliefs, and purchasing
behaviors—key factors marketers must align with consumer preferences.

● Perceptions: Shaped by experiences, advertising, and social influences, consistent product quality
fosters positive perceptions and loyalty.
● Attitudes: Emotional responses to brands often stem from relatable social media campaigns that
personally resonate with consumers.
● Beliefs: Influenced by cultural, social, and personal values, these guide purchasing decisions.
Brands engaging in corporate social responsibility, as noted by Malshe and Agarwal (2018), often
gain consumer trust and preference.

The Impact of SMM on Consumer Mindset

SMM significantly shapes consumer mindset, influencing brand perception, purchase intent, and loyalty.

1. Brand Perception
Authenticity and content quality are critical. Transparency, social cause engagement, and
responsive communication enhance trust. As Hennig-Thurau et al. (2010) found, authentic brands
generate stronger positive attitudes.
2. Purchase Intent
Social media’s immediacy drives impulse buying through strategic promotions and influencer
collaborations. Visually appealing, informative content aligns brand values with consumer needs,
boosting intent.
3. Consumer Engagement
Frequent interactions like comments and shares foster a sense of community and loyalty. Baird
and Parasnis (2011) note that consistent engagement strengthens emotional bonds, while
high-quality content boosts advocacy and visibility.
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Research Framework and Objectives

OBJECTIVE OF THE RESEARCH:
A. Analyze the Role of User-Generated Content (UGC)
B. Assess the Impact of SMM on Purchase Intent
C. Understand Consumer Engagement through SMM
D. Explore the Influence of SMM on Brand Perception
E. Understand Consumer Mindset in Response to SMM

HYPOTHESIS TO BE TESTED:

1. Social Media Usage vs Purchase Decisions

Hypothesis 1: Social media usage affects purchase decisions:

Variables: Social Media Usage Frequency vs Purchase Decision Frequency

2. UGC Importance vs Brand Perception

Hypothesis 2: UGC importance affects brand perception:

Variables: UGC Importance vs Brand Interest

3. Brand Interaction vs Satisfaction

Hypothesis 3: Brand interaction affects satisfaction:

Variables: Brand Interaction Frequency vs Product Satisfaction Rating

4. Age Group vs Impulsive Purchases

Hypothesis 4: Age affects impulsive purchases:

Variables: Age Group vs Impulsive Purchase Behavior

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5. Influencer Trust vs Purchase Decisions

Hypothesis 5: Influencer trust affects purchase decisions:

Variables: Trust in Influencers vs Purchase Decision Frequency

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DESCRIPTIVE DATA ANALYSIS

1. Age Group vs Social Media Usage (Heatmap):

The heatmap illustrates the intensity of social media usage among various age groups. Younger
demographics, particularly those aged 18–24, show the highest activity levels, likely driven by greater
tech-savviness and the appeal of social platforms for entertainment and socializing. Usage gradually
decreases among older age groups, with a notable drop in individuals aged 50 and above. This trend may
reflect generational differences in digital adoption and interests.

2. Social Media Platform Preference by Age Group

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The chart highlights platform preferences segmented by age. Younger users predominantly prefer
Instagram and TikTok, aligning with their visual and engaging content formats. Conversely, older
demographics show a stronger inclination toward Facebook, valued for its user-friendly interface and
community features. LinkedIn emerges as a favorite among professionals aged 25–44 due to its
career-oriented focus.

3. Purchase Decision Frequency Distribution by Age and Gender

This distribution reveals that purchase frequency is higher among females aged 18–34, likely influenced by
active engagement in social media shopping trends and influencer recommendations. Males aged 25–44
also show significant activity, potentially due to higher disposable income and interest in tech-related
purchases. Purchase frequency declines noticeably in individuals aged 50 and above, regardless of gender.
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4. Content Type Impact by Employment Status (Heatmap)

The heatmap showcases how employment status affects content preferences. Students predominantly
engage with entertaining and visually rich content, such as memes and short videos. Professionals display
a preference for educational and industry-related posts, reflecting their career-focused mindset. Retired
individuals show minimal engagement, likely due to reduced social media usage overall.

5. Brand Interaction vs Purchase Decision Impact

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This chart indicates a strong correlation between brand interaction and purchase decisions. Users who
actively engage with brands through likes, comments, and shares are significantly more likely to make
purchases. The impact is particularly pronounced in younger demographics, where social validation plays
a critical role. Exceptions are seen in older groups, where interaction does not necessarily translate into
purchasing behavior.

6. Product Satisfaction Rating Distribution by Age Group

Satisfaction ratings vary by age, with individuals aged 25–44 reporting the highest levels of satisfaction.
This group may align well with targeted product features and marketing strategies. In contrast, satisfaction
is lower among those aged 18–24, possibly due to higher expectations or limited purchasing power. Older
consumers report mixed satisfaction levels, influenced by product relevance and usability.
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7. Impulsive Purchase Behavior by Age Group

Impulsive buying behavior is most prevalent among individuals aged 18–34, driven by targeted ads, flash
sales, and social media trends. Impulse purchases decline with age, as older groups prioritize planned
decision-making. This trend underscores the importance of leveraging urgency-based marketing
strategies for younger consumers.
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INFERENTIAL DATA ANALYSIS

1. Social Media Usage vs Purchase Decisions
Hypothesis 1: Social media usage affects purchase decisions:

Variables: Social Media Usage Frequency vs Purchase Decision Frequency

Means: 0.600 vs 3.043

Variances: 1.113 vs 1.897

T-statistic: -11.781

P-value: 0.0000

Critical t-value: ±1.977

Pearson Correlation: 0.042 (p-value: 0.7306)

Conclusion: Reject null hypothesis

Summary

In summary, the analysis suggests that while there is a statistically significant difference in the means of
social media usage and purchase decision frequencies, the correlation between the two is weak. This
indicates that while social media usage may influence purchase decisions, the relationship is not strong,
and other factors may also play a significant role in influencing purchasing behavior.

2. UGC Importance vs Brand Perception

Hypothesis 2: UGC importance affects brand perception:

Variables: UGC Importance vs Brand Interest

Means: 3.686 vs 3.257

Variances: 1.204 vs 1.295

T-statistic: 2.268
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P-value: 0.0249

Critical t-value: ±1.977

Pearson Correlation: 0.553 (p-value: 0.0000)

Conclusion: Reject null hypothesis

Summary

In summary, the analysis indicates a significant relationship between the importance of user-generated
content and how consumers perceive a brand. The statistical evidence supports the idea that higher
perceived importance of UGC correlates with greater brand interest, leading to the conclusion that brands
should leverage UGC in their marketing strategies.

3. Brand Interaction vs Satisfaction

Hypothesis 3: Brand interaction affects satisfaction:

Variables: Brand Interaction Frequency vs Product Satisfaction Rating

Means: 2.629 vs 3.443

Variances: 1.425 vs 1.033

T-statistic: -4.345

P-value: 0.0000

Critical t-value: ±1.977

Pearson Correlation: 0.149 (p-value: 0.2168)

Conclusion: Reject null hypothesis

Summary

In summary, the analysis indicates that while there is a statistically significant difference in satisfaction
ratings based on brand interaction frequency, the actual correlation between the two variables is weak.
This suggests that while brand interaction may influence satisfaction, other factors could also play a
significant role in determining how satisfied consumers feel about a product.
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4. Age Group vs Impulsive Purchases

Hypothesis 4: Age affects impulsive purchases:

Variables: Age Group vs Impulsive Purchase Behavior

Means: 0.514 vs 1.257

Variances: 0.920 vs 0.484

T-statistic: -5.246

P-value: 0.0000

Critical t-value: ±1.977

Pearson Correlation: 0.081 (p-value: 0.5034)

Conclusion: Reject null hypothesis

Summary

In summary, the analysis suggests that there is a significant difference in impulsive purchase behavior
between different age groups, with one group exhibiting higher impulsivity. However, the weak
correlation indicates that age alone may not be a strong predictor of impulsive purchasing behavior.

5. Influencer Trust vs Purchase Decisions

Hypothesis 5: Influencer trust affects purchase decisions:

Variables: Trust in Influencers vs Purchase Decision Frequency

Means: 0.514 vs 3.043

Variances: 0.253 vs 1.897

T-statistic: -14.428

P-value: 0.0000

Critical t-value: ±1.977

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Pearson Correlation: 0.010 (p-value: 0.9374)

Conclusion: Reject null hypothesis

Explanation of the Analysis

Summary

In summary, the analysis indicates that while there is a statistically significant difference in purchase
decision frequency based on trust in influencers, the correlation between these two variables is very
weak. This suggests that while trust in influencers may influence purchase decisions, the relationship is
not strong, and other factors may also play a significant role in influencing consumer behavior.
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CONCLUSION
1. All five hypotheses resulted in rejection of the null hypothesis (p < 0.05)
2. The strongest correlation was found between UGC importance and brand interest (r = 0.553)
3. Most relationships showed significant differences in means but weak correlations, suggesting
non-linear relationships
4. Age group and impulsive purchases showed significant differences but weak correlation
5. Influencer trust and purchase decisions showed very significant mean differences but nearly zero
correlation
6. Younger audiences dominate social media, favoring visual and interactive content like videos and
polls.
7. Impulse buying is common among younger users, influenced by influencers and social media
trends.
8. Older demographics engage more selectively, relying on traditional ads and planned purchases.
9. Authenticity, high-quality content, and responsive engagement are key drivers of positive brand
perception and loyalty.
10. Excessive or irrelevant content leads to unfollowing, emphasizing the need for balanced, tailored
strategies.
11. Influencer recommendations hold more trust than traditional ads, making them crucial for
engagement.
12. By understanding these dynamics, brands can craft effective, audience-targeted strategies to
enhance loyalty and drive sales.