The Impact of Social Networking Sites On College Students' Consumption Patterns
The Impact of Social Networking Sites On College Students' Consumption Patterns
The Impact of Social Networking Sites On College Students' Consumption Patterns
BY
Medha Mishra
at the
Tribhuvan University
New Baneshwor
April 6, 2018
Letter of Approval
This summer project entitled "The impact of social networking sites on college students'
consumption pattern" has been submitted by "Medha Mishra" for final examination to the
faculty of management, Tribhuvan University, in fulfillment of the requirement for the
degree of BBA. The research committee of this campus has found this summer project
report satisfactory in scope and quality and has therefore forwarded for examination.
Chairman
ii
STUDENT'S DECLARATION
This is to certify that I have completed the Summer Project entitled "The impact of
social networking sites on college students' consumption pattern” under the guidance of
“Mr.Bharat Rai” in partial fulfillment of the requirements for the degree of Bachelor of
Business Administration at Faculty of Management, Tribhuvan University. This is my
original work and I have not submitted it earlier elsewhere.
Date:
Signature:
iii
CERTIFICATE FROM THE SUPERVISOR
This is to certify that the summer project entitled “The impact of social networking sites
on college students' consumption pattern” is an academic work done by Medha Mishra
submitted in the partial fulfillment of the requirements for the degree of Bachelor of
Business Administration at Faculty of Management, Tribhuvan University under my
guidance and supervision. To the best of my knowledge, the information presented by
him/her in the summer project report has not been submitted earlier.
______________________
Designation:
Date:
iv
ACKNOWLEDGEMENTS
My outmost gratitude goes to the Tribhuvan University for including this Project Work in
the syllabus of BBA, which I think is very helpful in developing practical knowledge of
the student. This report aims to examine the impact of social networking sites on college
students' consumption pattern.
I have tried my best to present the subject matter in a most simple and easily
understandable form. The persons who remained source of inspiration and
encouragement to present this report deserve to be acknowledged in the right earnest. I
am thankful to the people who kindly contributed their time for the completion of this
report.
Finally, my deepest appreciation goes to Mr. Bharat Rai, Professor Dr. Jeevan Kumar
Bhattarai, Asso. Professor Dr.Prakash Neupane, Mr. Chandra Dip Lamichhane and Mr.
Surya Devkota whose guidance gave me support to accomplish this task.
Thank you!
Medha Mishra
April, 2018
v
Table of Contents
Cover Page i
Letter of Approval ii
Letter of Approval ............................................................................................................ ii
STUDENT'S DECLARATION ...................................................................................... iii
CERTIFICATE FROM THE SUPERVISOR .............................................................. iv
ACKNOWLEDGEMENTS ............................................................................................. v
Table of Contents ............................................................................................................. vi
List of Tables .................................................................................................................. viii
List of Figures ................................................................................................................... ix
Executive Summary .......................................................................................................... x
CHAPTER I ...................................................................................................................... 1
INTRODUCTION............................................................................................................. 1
1.2 Context Information .................................................................................................. 1
1.2 Purpose of the Study ................................................................................................. 2
1.3 Significance of the study........................................................................................... 2
1.4 Literature Survey ...................................................................................................... 2
1.5 Research Methods ..................................................................................................... 3
1.5.1 Research Design................................................................................................. 3
1.5.2 Population .......................................................................................................... 4
1.5.3 Sample Size........................................................................................................ 4
1.5.4 Sample Method .................................................................................................. 4
1.5.5 Source of Data.................................................................................................... 4
1.5.6 Data Collection Instruments .............................................................................. 4
1.5.7 Data Analysis Tools ........................................................................................... 5
CHAPTER II ..................................................................................................................... 6
DATA PRESENTATION AND ANALYSIS .................................................................. 6
2.1 Respondent's Profile ................................................................................................. 6
2.1.1 Gender of Respondents ...................................................................................... 6
2.1.2 Age ..................................................................................................................... 7
Figure 2.2 Working status of respondents ...................................................................... 9
2.2 Data Presentation and Analysis ................................................................................ 9
vi
2.2.1 Facebook Usage ................................................................................................. 9
2.2.2 Frequency of checking facebook of respondents ............................................. 10
2.2.3. Number of friends on facebook ...................................................................... 11
2.2.4 Number of companies/businesses liked on facebook ...................................... 13
2.2.5 Frequency of shopping at the stores liked on facebook ................................... 14
2.2.6 Frequency of receiving information from companies liked on Facebook ....... 15
2.2.7 Opinion of respondents regarding the main cause triggering the online
shopping among students .......................................................................................... 15
2.2.8 Measurement of Impact of Social Networking Sites ....................................... 16
2.2.9 Respondents comments or additional information or suggestions on impact of
social networking sites on college students' consumption pattern ............................ 21
2.3 Findings and Discussion ......................................................................................... 22
CONCLUSION AND ACTION IMPLICATIONS ..................................................... 23
3.1 Conclusion .............................................................................................................. 23
REFERENCES
Annex- A Questionnaire .....................................................................................................
Annex-B: Mean Calculation...............................................................................................
vii
List of Tables
viii
List of Figures
ix
Executive Summary
The research is about the impact of social networking sites on college students'
consumption pattern. The general objective of conducting this research is to analyze the
impact of social networking sites on college students' buying habit. The specific
objectives are to examine the view of college students, social media usage frequency and
effect of word of mouth advertising.
For the completion of this research, 100 samples were taken. The data was collected
through structured questionnaire.
This research study examines the effect of social media, particularly Facebook, on the
purchasing habits of college students. Moreover, the research also examines the role of
gender and social media usage frequency on consumption patterns. Findings revealed that
Facebook is being used to obtain sales information and promotions. Furthermore, gender
has an impact on social networking sites. Additionally, this study found the higher the
frequency of social media usage the more likely customers are to shop at the businesses
they have befriended.
x
CHAPTER I
INTRODUCTION
1
1.2 Purpose of the Study
The major purpose of the study is to analyze the impact of facebook on buying habit of
college students.
To examine the role of social media on consumption patterns between male and
female.
To identify the impact of word-of-mouth to purchase the product from social
networking.
To examine the impact of frequency of facebook usage.
2
Many studies have supported the idea that a positive correlation exists between online
product reviews and sales (Hu, Liu, & Zhang, 2008). In 2008, Hu, Liu, and Zhang tested
the idea that products with favorable reviews sell better than products with unfavorable
reviews. In addition, Hu et al. sought to determine whether the quality of the reviewer
(reviewer appears more reliable) would influence the effectiveness of the review. By
analyzing reviews found on Amazon.com’s Web Service, Hu et al. (2008) discovered
statistically significant differences in sales between products that had favorable and
unfavorable online reviews. These findings are important because they show electronic
word-of-mouth communications do influence consumers, though the influence may be
moderated by other factors (Hu et al., 2008). Managers who are seeking to improve
electronic word-of-mouth communications would be better served by targeting the
influential reviewers, as their reviews will be given greater consideration (Hu et al.,
2008).Early research on social media focused on understanding the characteristics of
individuals who used this communication medium
A similar study conducted by Hyllegard, Ogle, Yan, and Reitz (2011) sought to
understand students’ motivation in using Facebook and fanning, or liking, particular
brands on the social networking site. The researchers found students use the site to
establish personal connections with others and use the site to create affiliations with
brands that define who they are and help them establish a sense of self (Hyllegard et al.,
2011).
3
1.5.2 Population
The population for this study is comprised of all students of university taking different
courses who use social networking sites. For this purpose convenience sampling method
is used as to make our research more simple and efficient. Samples of the students of
NCC BBA are chosen for our research. To gather the primary information on preference
of consumers, questionnaire survey was conducted with 100 respondents (25 students of
each semester).
i. Primary Source: Structured questionnaires have been used as the primary source of data
collection.
ii. Secondary Source: Various internet sites, previous similar research works, Journals,
relevant books have been used as a source of collecting secondary data.
4
o Rank order question
o Closed end questions
o Likert scale questions
o Respondents’ personal information.
5
CHAPTER II
DATA PRESENTATION AND ANALYSIS
This chapter presents and analyzes the primary data collected through structured
questionnaire from NCC BBA students. The questionnaires were distributed to 100
people out of which all 100 were responded. The collected data was sorted, classified,
tabulated and presented in the form of tables, charts, graphs and bar diagrams for the
purpose of drawing conclusion.
This chapter shows the respondent's profile, data presentation and analysis and findings
and discussion which are discussed below:
6
The statistics in the table 2.1 presents that 54 percent of the respondents are female and
46 percent of them are male. It shows higher majority of female respondents than male
respondents.
2.1.2 Age
Table 2.2 shows the age group of respondents taken under the study. For conducting this
study, the respondents have been classified into five group of age: Under 18 years, 18-20
years, 20-22 years, 22-24 years and 25 years and over.
The responses provided by the respondents about their age have been presented in table
and bar graph as follows:
Table 2.2 Age of Respondents (n=100)
Under 18 9 9
18-20 26 26
20-22 38 38
22-24 20 20
24 and over 7 7
The Table 2.2 presents that thirty eight percent of respondents belong to the age group of
20-22, which is followed by 26 percent in age group 18-20. There are 20 percent
respondents whose age is in between 22-24. There are nine percent respondents whose
age is under 18. Also we can see few percent of respondents i.e. seven percent
respondents in age group 24 and over. So, the majority of respondents fall in the age
group 20-22.
7
The age distribution of respondents has also been shown in figure 2.2
40
35
30
25
Percentage
20
15
10
5
0
Under 18 18-20 20-22 22-24 24 and over
Age
Unemployed 63 63
8
Unemployed
Working status
0 20 40 60 80
Percentage
This section presents the presentation and analysis of data after administering the
questions to respondents. Percentage, pie-chart and bar- graph are used for the purpose of
proper presentation and analysis of data. This contains measurement of impact of social
networking sites, particularly facebook on consumption pattern of NCC BBA students'
consumption pattern which is discussed as under:
No 0 0
9
120
100
80
60
40
Percentage
20
0
Yes No
Facebook Usage
The responses provided by the respondents regarding the question have been presented in
table and bar diagram as follow:
Never 0 0
Often 38 38
Very frequently 55 55
10
60
50
Percentage 40
30
20
10
0
Never Only once a day Often Very frequently
Responses
From the above diagram it can be observed that fifty five percent respondents check their
facebook accounts very frequently, thirty eight percent check it often, seven percent
check it only once in a day and there are no one who never check their facebook
accounts.
11
Table 2.6 Number of friends on facebook
401-500 23 23
301-400 18 18
201-300 7 7
101-200 3 3
1-100 0 0
The table 2.6 indicates the number of friends respondents have on facebook. Most of the
respondents have more than 500 friends (i.e. forty nine percent), twenty three percent
have 401-500 friends, eighteen percent have 301-400 friends, seven percent have 201-
300 friends, three percent have 101-300 friends and no one has less than 100 friends.
3%
7% Number of friends on facebook
23%
12
2.2.4 Number of companies/businesses liked on facebook
The responses to the question "How many companies/businesses have you liked on
Facebook?" are divided into five categories: None, 10-20, 20-30, 30-40, 40-50 and More
than 50. The responses are presented in following table and bar diagram:
Table 2.7 Number of companies/businesses liked on facebook
Number of companies/businesses liked Frequency Percentage (%)
None 0 0
10-20 9 9
20-30 17 17
30-40 21 21
40-50 20 20
More than 50 33 33
15
10
5
0
None 10-20 20-30 30-40 40-50 More than
50
Number of companies/businesses liked
From the Table 2.8 it can be observed that thirty nine percent respondents often shop
from the stores they liked on facebook, twenty eight percent shop frequently, eighteen
percent never shop and 15 percent shop very frequently.
Never 18 18
Often 39 39
Frequently 28 28
Very frequently 15 15
Very frequently
Frequencyof shopping
Frequently
Often
Never
0 10 20 30 40 50
Percentage
14
2.2.6 Frequency of receiving information from companies liked on Facebook
The responses to the question "How often do you receive information about sales,
specials or coupons from the companies you liked on Facebook?"are dived into four
categories: Never, Often, Frequently and Very Frequently..The responses of respondents
regarding the question are presented as follows:
Never 17 17
Often 56 56
Frequently 20 20
Very frequently 7 7
The table 2.9 shows the frequency of receiving information from companies liked on
Facebook. From the above response provided by respondent we come to know that the
respondents often receive information about sales, specials and coupons from the stores
they have liked.
2.2.7 Opinion of respondents regarding the main cause triggering the online
shopping among students
The question 2.2.7 is concerned with the question “What do you think can be the main
cause triggering the online shopping among students?" It is a ranking question where the
respondents have to rank the given option assigning 1 for most effecting factor and 3 for
least one. It is noted that the number 1 denoted effecting factor has lowest mean value
and the number 3 has highest mean value. The option is divided into three categories:
Word of mouth advertisement, Frequent checking of social media and Attractive offers
and sales. The responses provided by the respondents regarding the question has been
presented in table as follow:
15
Table 2.10 Opinion of respondents regarding the main cause triggering online shopping
Table 2.11 presents the five point likert scale statistics to analyse the impact of social
media on consumption pattern of college students. The 5-point likert scale has been used
with scales: strongly disagree, disagree, neutral, agree and strongly agree from 1 to 5
point respectively. The responses of 100 respondents are presented using the table 2.11:
Table 2.11 Measurement of impact of social media on consumption pattern
16
A. Opinion of respondents regarding more female consumer shopping online than
male
The Figure 2.8 shows that out of 100 respondents, almost half of the respondents i.e. 43
percent reported they agree to the statement “There are more female consumer shopping
online than male.” Twenty four percent respondents were neutral to the statement
whereas twenty percent reported they were strongly agree to the statement. Thirteen
percent reported they disagree to the statement. There were no respondents who strongly
disagree to the statement.
Strongly agree
Agree
Opinion of respondents
Neutral
Disagree
Strongly Disagree
0 10 20 30 40 50
Percentage
Figure 2.8 Opinion of respondents regarding more female consumer shopping online than
male
17
B. Opinion of respondents regarding liking and visiting pages recommended by
friends
The second statement addressed in likert scale is related with liking and visiting pages
recommended by friends.
The pages which are recommended by friends are
mostly liked and visited.
Strongly agree
Opinion of respondents
Agree
Neutral
Disagree
Strongly Disagree
0 20 40 60 80
Percentage
Figure 2.9 Opinion of respondents regarding liking and visiting pages recommended by
friends.
The second statement of likert scale is "The pages which are recommended by friends are
mostly liked and visited." The figure shows that more than half of the respondents (70
percent) agree to the statement and more than one by fifth respondents i.e. 21 percent
strongly agree to the statement. Five percent respondents reported that they disagree with
the statement. Out of the 100 respondents, 3 percent respondents were neutral with the
statement and only one percent strongly disagrees with the statements.
18
C. Opinion of respondents regarding frequent checking of facebook and exposure to
different pages and their promotions
The third statement is related with exposure to different pages and their promotions are
directly linked with frequent checking of facebook account.
Strongly agree
Agree
Opinion of respondents
Neutral
Disagree
Strongly disagree
0 20 40 60 80 100
Percentage
Figure 2.10 Opinion of respondents regarding frequent checking of facebook account and
exposure to different pages and their promotions
The third statement is “The frequent checking facebook account leads to exposure to
different pages and their promotions." Out of the 100 respondents, 84 percent of the
respondents strongly agree to the statement. Sixteen percent reported that they agree with
the statement. There were no respondents who disagree and neutral with the statement.
19
D. Opinion of respondents regarding the attractive sales and offers encourages
buying the online products.
The fourth statement is related with the impact of attractive sales and promotions.
Majority of respondents agree with the statement which is presented in Figure 2.12 as
under:
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Percentage
Figure 2.11 Opinion of respondents regarding the attractive sales and offers encourages
to buy the online products.
The fourth statement is "the attractive sales and offers encourages to buy the online
products."Out of the 100 respondents, 63 percent of the respondents strongly agree to the
statement. Thirty seven percent reported that they agree with the statement. Since all
respondents agree with the statement, it shows attractive sales and offers encourage to
buy the online products.
20
2.2.9 Respondents comments or additional information or suggestions on impact of
social networking sites on college students' consumption pattern
Respondents were asked about their thoughts or suggestions regarding impact of social
networking sites on college students' consumption pattern and most of them agreed that
social networking sites have highly influenced their buying habits. Respondent’s
comments and suggestions on impact of social networking sites are classified in table
2.12 as under:
Respondents
2 Attractive offers 21 21
6 No response 14 14
21
Table 2.12 shows comments and suggestions by the respondents regarding impact of
social networking sites. Forty two percent respondents reported that advertisements atrrat
buyers, twenty one percent reported attractive offers, fourteen percent reported
availability of unique products, seven percent reported that the low quality products were
misrepresented with the help of attractive pictures, two percent suggested for the
availability of easy payment services and rest fourteen percent didn’t give any response.
22
CHAPTER III
3.1 Conclusion
The research is conducted on NCC BBA students and opinion has been collected
regarding the impact of social networking site, particularly Facebook on consumption
pattern of college students through structured questionnaire. As analysed in the above
data presentation and analysis made in above chapter, we can conclude that due to word
of mouth advertisement students are encouraged for online shopping. Mostly females are
involved in buying online products. The attractive sales and offers also encourage buying
online products. The frequent checking of facebook account is prone to expose the
students to number of companies and their promotions. Above all, Facebook is the most
commonly used social networking site and it is leading to significant impact on
consumption pattern of college students.
23
REFERENCES
Facebook.(2018).Facebook.com Statistics.Retrieved from http://www.facebook.com/
press/info.php/statistics
Hu, N., Liu, L., & Zhang, J. J. (2008, March 11). Do online reviews affect product sales?
The role of reviewer characteristics and temporal effects. Information Technology and
Management, 9(3), 201-214.
Hyllegard, K. H., Ogle, J. P., Yan, R., & Reitz, A. R. (2011, September). An exploratory
study of college students' fanning behavior on Facebook. College Student Journal, 45(3),
601-616.
x
Annex- A Questionnaire
Dear Respondents,
1. Respondent's Profile
a. Name (optional): ………………………..
b. Gender: Male Female
c. Age:
Under 18
18-20 years
20-22 years
22-24 years
24 years and over
d. Do you work a…
Full time job
Part time job
I am not currently employed
xi
4. How many friends do you have on Facebook?
More than 500
401-500
301-400
201-300
101-200
1-100
6. How often do you shop at the stores you have liked on Facebook?
Never Often
7. How often do you receive information about sales, specials or coupons from the
companies you liked on Facebook?
Never Often
8. What do you think can be the main cause triggering the online shopping among
students?(Rank 1 for the main factor and 3 for least affecting factor)
Word of mouth advertisement
Frequent checking of social media
Attractive offers and sales
xii
9. To what extent would you agree or disagree in following statements. [Please assign 1
to strongly Disagree, 2 for disagree, 3 for neutral, 4 for agree, and 5 for strongly agree]
Statement 1 2 3 4 5
The pages which are recommended by friends are mostly liked and
visited.
10. Please provide any additional information or comments, if any, regarding impact of
social networking sites on college students' consumption pattern.
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
…………………………
xiii
Annex-B: Mean Calculation
Ranking 1 2 3 Total
1 93 93
2 5 10
3 2 6
X F Fx
1 5 5
2 34 68
3 61 183
N=100 Σfx=256
xiv
Calculation of mean for frequent checking of social media
X F fx
1 2 2
2 61 122
3 37 111
N=100 Σfx=235
xv