Sajan Final Research

A STUDY ON SOCIAL MEDIA MARKETING ON CONSUMER
PURCHASING DECISION
A business Research Report
Submitted by:
Sajan Shrestha
KU Registration number: A025795-18
Batch: 2018-2022
Bachelors of Business Administration (BBA)
Nepal College of Management (NCM)
Submitted in:
Partial Fulfilment of the requirement for Bachelor of Business Administration (BBA)
Degree
Submitted to:
Office of Dean
School of Management
Kathmandu University
Lalitpur, Nepal
Submitted on:
22th September, 2022
DECLARATION
I, Sajan Shrestha, the degree candidate, hereby declare that the information presented
in this report is an original, genuine work done originally by me under the specialized
Supervisor's close supervision and guidance, following the stipulated guidelines and
the same report has not been submitted elsewhere for the award of any degree. All
informational sources used in this research are cited with the names of the contributing
writers and year of publication. I firmly understand that this document becomes a
university property on its acceptance and promise to abide by the respective norms of
the university in this respect.
---------------------------
Sajan Shrestha
Degree Candidate
i
ACKNOWLEDGEMENT
This research report is the result of the continuous effort made and the unconditional
support of many people. It required a lot of effort and input from a large number of
people to complete this report. Firstly, I would like to express my gratitude to
Kathmandu University for designing a platform where we can obtain not only
theoretical knowledge but also practical knowledge.
I am very thankful to Nepal College of Management for providing me an opportunity

to acquire practical knowledge and special thanks to Mr. John Koirala, and Mr. Ujjwal
Bhattrai, my Business Research Supervisors for their valuable guidance and persistent
help during the entire period and preparation of this business research report.
I would like to thank Prof. Dr. Sushil Bhakta Mathema, Principal of Nepal College of
Management, Mr. Prem Prasad Silwal, Vice Principal of Nepal College of
Management, and Ms. Deepa Shree Mishra, faculty member for their valuable support,
inspiration, cooperation, and feedback during the entire period of the preparation of the
report.
Finally, I would like to pay heartwarming thanks to my family and my dear friends for
their valuable support and assistance, without their support this report would not be
possible. I have tried my best to design a complete application that fulfills all the
requirements. Though I am not a professional or experienced in this field I tried my
level best to make this research report according to the guidelines provided.
Sincerely,
Sajan Shrestha
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RECOMMENDATION
This is to certify that Mr. Sajan Shrestha has finished his Business Research Report
work titled A STUDY ON SOCIAL MEDIA MARKETING ON CONSUMER
PURCHASING DECISION as partial fulfillment of the requirements for Bachelors of
Business Administration (BBA) degree under our supervision following the respective
guidelines for paper documentation. We, therefore, recommend the report for
acceptance and approval.
Mr. John Koirala Mr. Prem Prasad Silwal

Business Research Supervisor Business Head
iii
CERTIFICATE OF ACCEPTANCE
Following a successful presentation and evaluation by the Research Evaluation

Committee, this report entitled A STUDY ON SOCIAL MEDIA MARKETING ON
CONSUMER PURCHASING DECISION submitted by Mr. Sajan Shrestha has been
accepted and forwarded to the University for awarding Bachelor of Business
Administration (BBA) degree.
Research Evaluation Committee
Mr. John Koirala Signature:_______________

Business Research Supervisor Date:___________________
Mr. Prem Silwal Signature:_______________

Member, Research Evaluation Committee Date:___________________
Prof. Dr. Sushil Bhakta Mathema Signature:_______________

Chairman, Research Evaluation Committee Date:___________________
iv
ABSRACT
The main purpose of conducting the present research is to study the influencing factors
behind consumers' acceptance of online purchasing. Throughout the study, the present
researcher is determined to carry out research to analyze the driving forces behind the
consumers' acceptance of online purchasing.
The present research was carried out by using a quantitative method followed by a
conclusive research design and a descriptive research design. A sample size of 112
respondents was taken to conduct the present research survey. Samples were chosen
using the convenience sampling method as the customers were large in number. In order
to conduct the survey, a questionnaire was created which were further coded and
analyzed, presented, and used to produce key findings about the impact of social media
marketing on Consumer Purchase Decision.
After analysis of the data, the key findings of the present study revealed that social
media marketing has a strong and positive relationship with the consumer purchase
decision. Hence, social media marketing is a very important factor that affects the
consumer purchase decision
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TABLE OF CONTENTS
DECLARATION ............................................................................................................ i
ACKNOWLEDGEMENT .............................................................................................ii
RECOMMENDATION ............................................................................................... iii
CERTIFICATE OF ACCEPTANCE ............................................................................ iv
ABSRACT ..................................................................................................................... v
TABLE OF CONTENTS .............................................................................................. vi
LIST OF TABLES ........................................................................................................ ix
LIST OF FIGURES ....................................................................................................... x
LIST OF ABBREVIATIONS ....................................................................................... xi
CHAPTER I: INTRODUCTION ................................................................................... 1
1.1 Background of the Study ...................................................................................... 1
1.2 Statement of the problem ..................................................................................... 2
1.3 Objectives of the Study ........................................................................................ 4
1.4 Significance of the Study ..................................................................................... 4
1.5 Limitations of the study........................................................................................ 4
1.6 Organization of the study ..................................................................................... 5
CHAPTER II: LITERATURE REVIEW ...................................................................... 6
2.1 Concept................................................................................................................. 6
2.2 Theoretical Review .............................................................................................. 7
2.2.1 Social Media Marketing ................................................................................ 7
2.2.2 Consumer Purchase Decision ........................................................................ 8
2.2.3 Advertising and Consumer Purchase Decision ............................................. 9
2.2.4 Influencer Marketing and Consumer Purchase Decision ............................ 10
2.2.5 Online Customer Reviews and Consumer Purchase Decision .................... 10
2.3 Empirical Review ............................................................................................... 11
2.4 Research Gap...................................................................................................... 12
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2.5 Conceptual Framework ...................................................................................... 13
CHAPTER III: RESEARCH METHODOLOGY ....................................................... 15
3.1 Research Design ................................................................................................. 15
3.2 Research Method ................................................................................................ 16
3.2.1 Study Area and Population .......................................................................... 16
3.2.2 Sources and Nature of Data ......................................................................... 16
3.2.3 Sampling Techniques .................................................................................. 17
3.3 Data Analysis ..................................................................................................... 17
3.3.1 Descriptive Analysis .................................................................................... 17
3.3.2 Inferential Analysis...................................................................................... 18
3.3.2.1 Summary Statistics................................................................................ 18
3.3.2.2 Regression Analysis .............................................................................. 19
Multiple Linear Regression ........................................................................... 19
Exploratory Factor Analysis (EFA) .............................................................. 20
KMO and Bartlett’s Test ............................................................................... 20
Communalities .............................................................................................. 21
Total Variance Explained .............................................................................. 21
Common Method Bias (CMB) ...................................................................... 21
3.5 Plan of Action..................................................................................................... 22
CHAPTER IV: DATA ANALYSIS ............................................................................ 24
4.1 Descriptive Analysis .......................................................................................... 24
4.1.1 Demographic Characteristics ....................................................................... 24
4.1.1.1 Gender................................................................................................... 26
4.1.1.2 Age of Respondents ............................................................................... 27
4.1.1.3 Education Level .................................................................................... 28
4.1.1.4 Employment Status ................................................................................ 29
4.1.1.6 Social Media Usage .............................................................................. 31
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4.1.2 Research Variables ...................................................................................... 31
4.1.2.1 Advertising ............................................................................................ 32
4.1.2.2 Influencer Marketing ............................................................................ 33
4.1.2.3 Online Review ....................................................................................... 35
4.1.2.4 Consumer Purchase Decision ............................................................... 37
4.3 Inferential Analysis ............................................................................................ 38
4.3.1 Descriptive Statistics ................................................................................... 38
4.3.2 Exploratory Factor Analysis ........................................................................ 39
4.3.3 KMO and Bartlett’s Test ............................................................................. 39
4.4 Hypothesis Testing ............................................................................................. 43
4.5 Summary of Key Findings ................................................................................. 44
Chapter 5: Summary, Conclusion, and Recommendations ......................................... 45
5.1 Summary of the Study ........................................................................................ 45
5.2 Conclusion.......................................................................................................... 46
5.3 Recommendations .............................................................................................. 47
5.4 Areas for Future Study ....................................................................................... 48
REFERENCES ............................................................................................................ 49
APPENDIX A: SURVEY QUESTIONNAIRE........................................................... 55
viii
LIST OF TABLES
Table 1: Skewness and Kurtosis .................................................................................. 19
Table 2: KMO and Bartlett’s ....................................................................................... 20
Table 3: Plan of Action ................................................................................................ 23
Table 4: Demographic components ............................................................................. 25
Table 5: Likert Scale of Advertising Variable ............................................................. 32
Table 6: Likert Scale of Influencer Marketing Variable .............................................. 34
Table 7: Likert Scale of Online Review Variable ........................................................ 36
Table 8: Likert Scale of Consumer Purchase Decision Variable ................................. 37
Table 9: Descriptive Statistics ..................................................................................... 39
Table 10: KMO and Bartlett’s Test ............................................................................. 39
Table 11: Communalities ............................................................................................. 40
Table 12: Rotated Component Matrix ......................................................................... 41
Table 13: Total Variance Explained ............................................................................ 42
Table 14: Hypothesis Testing ...................................................................................... 43
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LIST OF FIGURES
Figure 1: Concept of Social Media Marketing .............................................................. 8
Figure 2: Conceptual Framework ................................................................................ 13
Figure 3: Gender-wise display of respondents............................................................. 26
Figure 4: Age group-wise display of respondent ......................................................... 27
Figure 5: Education Qualification of respondents ....................................................... 28
Figure 6: Employment status of respondents ............................................................... 29
Figure 7: Monthly Income of respondents ................................................................... 30
Figure 8: Preference of social media for customer purchase ....................................... 31
x
LIST OF ABBREVIATIONS
KU : Kathmandu University
BBA : Bachelors of Business Administration
KUSOM : Kathmandu University School of Management
SPSS : Statistical Package for the Social Sciences
NCM : Nepal College of Management
N : Number (Frequency)
SMM : Social Media Marketing
AV : Advertising
IM : Influencer Marketing
OR : Online Reviews
OCR : Online Customer Reviews
eWOM : Electronic Word-of-Mouth
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CHAPTER I: INTRODUCTION
This chapter provides an overview of the study. The background of the study is
described, the statement of the problem is addressed and the questions and objectives
that the study will examine are provided in the study. The significance and organization
of the study are also clarified in general.
1.1 Background of the Study
Consumer purchasing decision-making is the process of choosing a product from a

range of alternatives and purchasing through real follow-up. The consumer considers
their options before deciding which attitude to take. The marketer may be successful in
marketing its goods or services if they are successful in understanding customer
behavior as it relates to the consumer's purchasing decision-making process (Qazzafi,
2019).
Further, Parson (2013) argued that interacting with customers on social media increase
the number of potential customers and the chances of converting them into potential
buyers. In addition to shifting current potential customers into purchasers, social media
encourages customers to promote and share their purchases with their friends by
providing good or negative feedback on a product they have purchased.
Social media marketing (SMM) is the way of promoting a website, brand, or business
by engaging with or attracting the interest of present or potential customers via social
media channels. Moreover, Ansari et al. (2019) stated that the most popular social
media platforms used by companies and celebrities to promote their brands and
themselves are Facebook, Twitter, and YouTube. In other words, SMM is any form of
direct or indirect marketing that uses the social web's tools, such as blogging,
microblogging, social networking, social bookmarking, and content sharing, to increase
awareness, recognition, recall, and action for a brand, company, product, person, or
other entity (Gurnelius, 2011).
On top of that, there are various factors or determinants of SMM that affects consumer
purchase decision. Some of them are Advertising, Influencer Marketing, and Online
1
Reviews. Advertising is a marketing promotional strategy to catch people's attraction
to specific actions for products or services (Saleem & Abideen, 2011). A lot of
businesses have prioritized advertising on social media. Whereas, Trivedi & Sama
(2020) explains that another factor i.e., influencer marketing has a significant
relationship with the consumer purchase decision. Influencers emphasize the product
or service attributes and drive a brand’s message to reach the target segment (Allen,
2017). Furthermore, Ba & Pavlou (2002) explains that consumer purchase decision
depends upon the fact that the more positive comments, reviews, and ratings of previous
consumers on social media, the more effective in building trust in potential customers.
Online reviews refer to any positive or negative online consumer comments for
products or sellers (Hennig-Thurau et al., 2004).
However, in social media marketing, there are numerous factors to take into account
that affect consumer purchasing decisions. The existing research suggested mixed
results. For instance, a study by Darmatama & Erdiansyah (2021) suggests advertising
on TikTok social media had a partially significant relationship with the consumer
purchase decision. But, some research shows a strong and positive relationship between
advertising and consumer purchase decision (Nizam & Jaafar, 2018).
It is a valuable step to assess the role of social media in the field of marketing. The aim
of this research is to explore the impact of the determinants of social media marketing
on consumer purchase decisions. The current researcher considers examining the gap
i.e., advertising, influencer marketing, and online reviews as determinants of social
media marketing in consumer purchase decisions.
1.2 Statement of the problem
The usage of social media has become incredibly frequent and in order to engage
customers and affect their purchasing behavior of customers, businesses consider social
media marketing seriously. There are various factors or determinants of the social
media marketing that affect consumer purchase decisions. Therefore, it is very
important to identify key determinants of social media marketing and analyze its effect
on a consumer purchase decision. The present research is conducted to examine the
effect or impact of social media marketing on a Consumer Purchase Decision.
2
There are various factors to consider in online advertising that affects the consumer
purchase decision. Many research has considered some important factors that make
advertising more effective. However, the effect of these factors is always changing. So,
the statement of the problem is “Does advertising in social media affects consumer
purchase decision?”
To the best of our knowledge, there has been little research investigating the
relationship between influencer marketing in social media and consumer purchase
decisions. Therefore, this thesis questions “Does influencer marketing affects consumer
purchase decision?” and sets out to investigate how influencer marketing affects
consumers’ purchase intentions.
Online customer reviews (OCRs) have become a major source of information for
customers on the internet. Understanding the impact of OCRs on customers’ decisions
is an important challenge for academics and practitioners and it raises the question
“Does online customer reviews affect consumer purchase decisions?”
In the context of Nepal, various questions need to be addressed to understand the impact
of social media marketing on consumer purchasing decisions which are given below:
1) What is the relationship between social media marketing and consumer

purchase decision?
2) What are the major factors of the social media marketing that influence the
consumer purchase decision?
3) What is the impact of advertising, influencer marketing, and online reviews on

the consumer purchasing decision?
3
1.3 Objectives of the Study
The general objective of this study is to study the impact of social media marketing and
consumer purchase decision. In line with this specific objective are as follows:
1) To study the relationship between advertising in social media and consumer
purchase decision.
2) To study the relationship between influencer marketing in social media and
consumer purchase decision.
3) To study the relationship between online reviews in social media and consumer
purchase decisions.
1.4 Significance of the Study
This research shed light on the areas related to the impact of social media marketing in
consumer purchase behavior in Kathmandu. This study can help marketers to recognize
the effect of social media marketing on a consumer purchase decision. This study will
benefit firms who are just getting started with social media as well as existing firms that
want to understand the impact of social media marketing on consumer purchase
decisions. Acceptance of social media and understanding its marketing prospects
through social media is an important field of research for educational and business
purposes. The outcomes of this survey will have an impact on business marketing
strategies. The research would benefit the concerned researchers, students, and teachers
by giving a reference for their research. Furthermore, it will provide future researchers
with secondary information and data that may be useful for conducting this type of
research.
1.5 Limitations of the study
In this research, the samples of the study; users or customers who purchase the products
or services from social media such as Facebook, Instagram, TikTok, YouTube,
WhatsApp, and LinkedIn. The samples of this research are limited to the users of social
media. However, there are other social media too where businesses perform social
media marketing such as Google, Viber, Telegram, Direct Mail, Discord, etc. that can
affect the outcome of the research.
4
The researcher performed conclusive research where the conclusion was made using
the obtained information. However, if we were able to perform time series analysis
where the pattern of shifting in consumer purchase decision due to factors of social
media marketing could be analyzed, would provide more relevant data sets for the
research.
1.6 Organization of the study
The study is divided into five distinct chapters. The first chapter gives a quick overview
of the subject at hand. It includes a background of the study, statement of the problem,
objective of the study, significance of the study, limitations of the study, and
organization of the study. Then the second chapter examines the literature, including
reviews of related books, journals, articles, previously unpublished graduate research
reports, reviews of related studies and the conceptual framework. The study's research
technique is explained in the third chapter. It covers topics including research design,
population and sampling, data kinds and sources, data gathering procedures, analysis
methods, and analytical tools. Subsequently, the fourth chapter introduces the analysis
of data collected, as well as its interpretation and presentation. Finally, the fifth chapter
presents the study's summary, conclusions, and suggestions based on the overall
experience of the study and descriptive analysis of research data.
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CHAPTER II: LITERATURE REVIEW
The primary goal of performing a literature review is to introduce the necessary

theoretical and conceptual understanding of the current study's subject of interest. The
current researcher concentrated on theoretical and conceptual knowledge about the
social media marketing and consumer purchase decision. The literature review sections
will concentrate on a review of theoretical views relevant to the current topic A Study
on Social Media Marketing on Consumer Purchase Decision. Finally, the conceptual
framework is used to shape the whole research project.
2.1 Concept
Researchers are interested in identifying the relationship between the factors of social
media marketing and consumer purchasing decision. There are various factors of social
media marketing such as advertising, influencer marketing and online reviews.
The consumer purchase decision is the activity through which a consumer determines
whether or not to purchase a product based on need, desire, and expectation, which
might lead to product satisfaction or dissatisfaction (Olshavsky & Granbois, 1979;
Puccinelli et al., 2009).
Advertising is the business of announcing the availability of something for sale or

attempting to persuade buyers to purchase a product or service (Colin, 2020).
Advertising can effectively reach geographically distributed buyers (Kotler & Keller,
2012).
Singh & Diamond (2012) define social influence marketing as "a technique that uses
social media (content created by everyday people using highly accessible and scalable
technologies such as blogs, message boards, podcasts, microblogs, bookmarks, social
networks, communities, wikis, and vlogs) and social influencers (everyday people who
have an outsized influence on their peers by virtue of how much content they share
online) to achieve an organization's marketing and branding goals."
6
Online review systems are viewed as a key source of electronic word-of-mouth
(eWOM) (Ba & Pavlou, 2002; Chau & Xu, 2012; Kuehl, 1999) and include many
components such as rating score, textual areas, usefulness indications, and other distinct
components. Consumers may react to review content, to reviewers’ credibility, and
review ratings. Various online review system components are aimed to convey other
consumers' thoughts and experiences to current and potential customers in an honest
and accurate manner.
2.2 Theoretical Review
Theoretical review discussed literature on the basis of theoretical concepts and themes.
This review focuses on theories on consumer purchase decision, social media marketing
and its factors.
2.2.1 Social Media Marketing
Social media platforms offer a place for people with similar interests, beliefs, and ideas
to connect. Users of social media sites communicate with one another in order to find
and exchange content. Some of the other ways in which social networking can be used
are for self-disclosure and self-representation and thus creating and managing a social
or even a professional identity (Haythornthwaite & Wellman, 1998).
Over the past decade, a shift in marketing has occurred. Senior Lecturer in Marketing,
Charlesworth (2014) defines social media as "any digital presence where users can add
their own content but do not have control over the site in the same way they would their
own website".
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Figure 1: Concept of Social Media Marketing
Source: (Elghannam & Mesias, 2019)
In the context of the current study, the above model can be understood as an
understanding relationship between social media marketing and consumer purchase
decisions. Social media marketing (SMM) aims to "engage" potential customers on
social media by using promotions, contests, content, articles, video, photos, groups, and
so on. Whatever it takes to get people talking to you and with you and talking to other
people (Kelsey, 2017). Once social media user has formed an opinion, they are free to
share their thoughts and experiences with the rest of the world, which can impact how
other users see their own experiences. Croteau (2019) in recent years, social media has
emerged as a strong component of social interaction.
2.2.2 Consumer Purchase Decision
According to (Johansson & Burt, 2004; Kohli et al., 2004; Levy & Lee, 2004), the
purchasing decision process refers to the stages that a buyer goes through when
deciding on a specific product or service. The decision to buy can influence how the
decision-making process is carried out (Schiffman & Kanuk, 2004). The purchase
decision is a buying decision process that includes determining what will be purchased
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or not obtained from previous activities. According to Kotler & Keller (2012),
purchasing decisions are a problem-solving process that includes analyzing needs and
wants, information retrieval, resource assessment, alternative purchase selection,
purchasing decisions, and post-purchase behavior.
2.2.3 Advertising and Consumer Purchase Decision
Advertising plays a significant and significant function in promoting goods and

services. Advertising has become an important element of the promotion mix due to the
fast development of technology and the influence of media. Advertisements, whether
printed or electronic, can reach a larger audience and have a greater impact on them.
They can be used to inform larger customers, persuade them to purchase the product,
and have a significant impact on consumer decision-making. Advertisements can also
be used to remind current customers of their connection to their products (Amandeep
et al., 2017) .
Social media is one of the most popular ways for individuals to communicate with one
another, and it allows people to share their beliefs and opinion, ideas, and even emotions
(BELMONTE-JIMÉNEZ, 1988; Stieglitz & Dang-Xuan, 2013). Social media
advertising or social media targeting are advertisements served to users through social
media platforms. This is a competitive advertisement plan (Bimpikis et al., 2016). It
may also be used for selling products and services directly (Ramo & Prochaska, 2012;
Ramo et al., 2014) although there are many challenges in the online shopping (Guha et
al., 2010). Social networks utilize users' information to serve highly relevant
advertisements based on interactions within some specific platforms (Zubcsek &
Sarvary, 2011). When a product or service is advertised on the internet, it is vital to use
relevant methods to identify the target people (Aggarwal et al., 2014).
It is not easy to make customers recognize their needs and attract their attention to focus
on one product advertised on social media, particularly the TikTok social media app.
However, Advertising on TikTok social media has a strong and significant influence
on consumer purchasing decisions, which means that beauty product advertisements on
TikTok social media are increasingly being enhanced by paying attention to the
dimensions -dimensions: advertising content (such as credible information, creative
9
content, offering something new) and sales promotion content (such as offering
discounts, giving gifts, lowering product prices) will further enhance consumer
purchasing decisions (Darmatama & Erdiansyah, 2021).
2.2.4 Influencer Marketing and Consumer Purchase Decision
The marketing field is changing simultaneously with the digital world and social media
influencer marketing would be a good alternative to other old types of marketing (Lê
Giang Nam, 2018).
Gillin (2007) states that influencer marketing on social media involves interactions with
influential people to drive a brand’s message and products to the world market.
Influencer marketing is simply the action of marketing through influencers. This form
of marketing goes hand-in-hand with creating messages that are carried by influencers
to enhance the extent of brand awareness towards consumer segmentations. (Brown &
Hayes, 2008) explain impacts that could occur in one–to–situation or in large groups
and affect both cognition and emotion. Moreover, Brown & Hayes (2008) identify
influencers' dynamics to use companies' messages, demonstrating that influencers tend
to work with firms if firms' messages are valuable, and most importantly, add value to
their influence. This is also an important part of a successful influencer marketing plan.
With the development of major influencers on social media, marketing through
influencers has recently become more popular and effective.
2.2.5 Online Customer Reviews and Consumer Purchase Decision
Consumers' attitudes and intentions to purchase are influenced by the reviews they
create about a product or service in social media (Purnawirawan et al., 2012). For
instance, consumer reviews are important for learning about experience goods such as
hotel rooms as their quality is often unknown before purchase (Nelson, 1970; Pine &
Gilmore, 1998). According to Gretzel & Yoo (2008), online reviews provide quality
information to reduce risk while purchasing experiencing products. Online reviews
enable consumers to learn about the perception of product quality and service
satisfaction from previous consumers without experiencing the goods themselves.
10
Online consumer reviews have become an important source of information for
consumers, substituting for other forms of business-to-consumer (Jiang & Chen, 2007)
and offline word-of-mouth (WOM) communication (Lewis & Bridger, 2011) about the
quality-of-service providers.
More positive comments, reviews, and ratings contribute to more trust in a vendor (Ba
& Pavlou, 2002).
2.3 Empirical Review
This section of the review of literature focuses on similar studies done by other
researchers in the past. The section includes studies based on the effect of social media
marketing on consumer purchase decisions. Numerous works of research samples were
found and similar types of related studies are taken into consideration. There are a lot
of factors that affect the consumer purchase decision.
According to Omar & Atteya (2020), the mobile as a digital marketing channel has a
negative impact on the consumer purchasing decision through all the stages of the
consumer purchasing decision process (i.e. need recognition, information search,
evaluation of alternatives, purchase decision, and finally post-purchasing decision).
Another study in Oman shows that there is a significant relationship between
advertisements on consumer purchase decisions reference to consumer durable goods.
Moreover, it concluded that there are four factors i.e. Ad recall, Ad persuasiveness,
attitude towards Ad, and Ad attractiveness all these factors contribute significantly to
Ad effectiveness, Ad persuasiveness has the largest contribution to Ad efficiency and
on the other hand Ad persuasiveness and Ad Attractiveness contribute heavily to
purchase intention (Amandeep et al., 2017). Moreover, Nizam & Jaafar (2018) suggests
that online advertising and consumer purchase decision has a more significant and
strong relationship when the attitude towards ads, ability to recall ads, and frequency
of clicking ads has a significantly given impact on the purchase decision by the
customers.
Similarly, a study conducted in India contributed to the understanding of consumer

behavior toward influencer marketing in an emerging market. Furthermore, it observed
the impact of an expert influencer in relation to an attractive celebrity influencer on
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brand attitude, which further influences brand admiration and finally results in online
purchase intentions (Trivedi & Sama, 2020).
Some other researchers studied that online review in social media marketing is very
important in consumer purchase decisions. It studied that review quality of online
consumer reviews has a positive effect on offline hotel popularity which actually may
impact the consumer decision to book the room and make a stay in the hotel (i.e., in our
research term consumer purchase decision) (Xie et al., 2016). Consumer reviews
written by previous buyers reveal a specific level of evaluation and feedback on
experience products, thus providing an important reference for new buyers to help them
make informed decisions and choose the products that best match their preference. As
a result, nearly three-quarters of consumers increasingly use online consumer reviews
when planning their tourism services (Xie et al., 2014), and nearly 50% visit an online
review site for information related to their online travel purchasing (Embracing
Consumer Buzz 1. Measurement Challenges for Marketers, 2006).
The relationship between social media and consumer decision-making shows that social
media influences consumer advertising attitudes, brand attitudes, and purchase
intentions. It will not necessarily influence customer decisions, but it may have a
mediating effect (Sema, 2013). Social media can influence brand attitudes, which in
turn influence purchasing behavior. A good image of a brand or product might
influence consumer purchasing decisions. When a consumer's social media friend
shares or recommend services or products on their social media, it influences brand
attitude and decision-making. However, commercial advertising on social media may
impact both consumer brand opinions and purchasing intentions (Yang, 2012).
2.4 Research Gap
From the review of the existing literature, it is observed that several research studies
have been conducted regarding the impact of social media marketing and consumer
purchase decision. Social media usage has increased dramatically, and businesses are
taking social media marketing seriously in order to engage customers and influence
their purchase decision. There are several aspects or characteristics of social media
marketing that influence customer purchasing decisions. As a result, it is critical to
12
identify major factors of social media marketing and study their impact on customer
purchasing decisions. The current study is conducted to investigate the impact or
consequences of social media marketing on a consumer purchase decision. For that the
present researcher has taken advertising, influencer marketing and online reviews as
the factors of social media marketing and evaluated its effect and impact on consumer
purchase decision.
2.5 Conceptual Framework
(Edwards, 1998) states that, a conceptual framework is a differentiation and relationship

conceptualization that opens up the essential attributes of the type of case being
examined and whose value can be evaluated against other cases. There are several
conceptual models relating to social media marketing factors with consumer purchase
decision.
The current study looked at three main aspects of social media marketing that affects
the consumer purchase decision. They are; Advertising, Influencer Marketing and
Online Review.
Social Media Marketing
Advertising
Influencer Consumer Purchase

Marketing Decision
Online
Review
Figure 2: Conceptual Framework

The conceptual framework is developed by identifying the dependent and independent
variables and explaining how they related to one another (Fauzi & Pradipta, 2018). In
13
the conceptual framework for the analysis of the study, consumer purchase decision
(CPD) is taken as dependent variable and determinants of social media marketing i.e.,
Advertising (AV), Influencer Marketing (IM) and Online Reviews (OR) are taken as
independent variable.
The current researcher has recognized three hypothesis testing in this research. They
are as follows:
H1: There is a positive and significant relationship between advertising in social media
and consumer purchase decision.
H2: There is a positive and significant relationship between influencer marketing in

social media and consumer buying decision.
H3: There is a positive and significant relationship between online review in social
media and consumer purchase decision.
14
CHAPTER III: RESEARCH METHODOLOGY
This chapter explains the research methodology employed in this study. Research
methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically (Patel & Patel,
2019). It discusses the sampling and selection method, the data collection process and
sources of data, the analytical procedure, and the testing of the data used in the study's
reliability and validity. It is essentially an exploratory research study that follows a face-
to-face interview.
The first section describes the research design suggested by scholars and the actual
research design used in this study. The second section presents the method of research
being used to conduct the study. Further followed by study area and population, sources
of data and nature of data, sampling techniques, data analysis which is further
categorized into descriptive analysis and inferential analysis (summary statistics, and
regression analysis), and plan of action.
3.1 Research Design
The present researcher conducted the survey research focusing on the conclusive
research design and descriptive research design. The researcher will study the present
situation of consumers purchase decision based on different factors of social media
marketing in Nepal and its marketing strategies. And the researcher will describe the
characteristics of various aspects influencing the consumer purchase decision and its
effect with the help of small but representative sample.
The research is based on the quantitative research method. Quantitative research is used
to quantify the problem for generating numerical data or so that the data can be used
for statistical purposes. It uses measurable data to formulate facts and patterns in
research. It is more structured than the Quantitative method and it includes surveys
(Online, Paper, and Mobile), face-to-face interviews, telephone interviews, online
polls, systematic observations, and longitudinal studies (Amaratunga et al., 2002).
15
3.2 Research Method
The research methods are the strategies or techniques used in data collecting or analysis
to discover new information or acquire a better knowledge of a topic (i.e., a study on
social media marketing in a consumer purchase decision). There are various types of
research methods that use different data collection tools. In this section, we discuss the
study area and population, sources of data collection and nature of data collection,
sampling techniques, research instruments, and so on.
3.2.1 Study Area and Population
The researcher has limited the study to Kathmandu Valley i.e., Kathmandu, Lalitpur,
and Bhaktapur customers who purchase products or services from social media.
Kathmandu region as the present researcher can only focus on the population of
Kathmandu region as the whole population of customers all over Nepal is diverse as
well as large, it cannot be covered all into account.
The population is the total number of individuals or objects about which we want to
draw judgments (Cooper & Schindler, 2013). In the present research, the study of the
population will consist of customers who buy the products and services from social
media.
3.2.2 Sources and Nature of Data
The researcher has used primary data in this study. Primary data are those collected or
obtained for the first time by the researcher through direct effort and experience in order
to make decisions on research problems, whereas secondary data are those collected for
purposes other than existing problems (Tull & Hawkins, 1984).
The current researcher used primary sources of data collecting to ensure that the
research is carried out correctly. As a primary source, the current researcher prepared
the questionnaire and secondary data will be gathered from a variety of secondary
sources, including journals, books, websites, and numerous published documents by
various scholars and institutions.
16
3.2.3 Sampling Techniques
Convenience sampling (also known as Haphazard Sampling or Accidental Sampling)

is a type of non-probability or non-random sampling in which members of the target
population who meet certain practical criteria, such as easy accessibility, geographical
proximity, availability at a specific time, or willingness to participate, are included in
the study. (Dörnyei & Taguchi, 2009)
The present researcher used a convenience-based technique where the sampling

distribution is obtained on the basis of variables like respondents' age group, gender,
monthly income, profession, and academic qualifications. The samples will be drawn
from social media users such as Instagram, Facebook, YouTube, TikTok, WhatsApp,
and LinkedIn users who have made a purchase.
3.3 Data Analysis
For the purpose of data collection from general customers who purchase from social
media, the present research has used a survey questionnaire. The aim of collecting data
was to understand the impact of social media marketing in a consumer purchase
decision. For analyzing the data, Statistical Package for Social Science (SPSS) was
used. The data interpretation was done using a quantitative approach precisely
descriptive statistics and regression analysis.
3.3.1 Descriptive Analysis
The descriptive analysis's goal is to summarize the set of data by combining tabular
description, graphical description, and statistical commentary. It also discovers and
describes population trends and variances, develops new measures of essential
phenomena, or simply describes samples in studies intended at determining cause
effects (Loeb et al., 2017). It is used to give quantitative descriptions in an
understandable manner. It is used to rationally simplify vast volumes of data (Sarmento
& Costa, 2019). The descriptive analysis contains a frequency measure, central
tendency, dispersion/variation, and position, as well as various kinds (nominal, ordinal,
interval, and ratio). It aids in data visualization and allows data to be displayed in a
17
clear and intelligible manner, allowing for a more simplified interpretation of the data
set in the question (Loeb et al., 2017).
3.3.2 Inferential Analysis
The goal of inferential analysis is to employ different analytical tools to make

conclusions about the population data from sample data. By evaluating the samples
received from it, it helps to develop a good knowledge of the population data.
Inferential statistics seek to make broad generalizations about a group (Zhang et al.,
2018). Inferential statistics are often used to compare the differences between the
treatment groups. It allows researchers to come to reasonable assumptions about the
larger population based on the sample’s characteristics. It enables researchers to make
descriptions of data and draw inferences and conclusions from the respective data
(Moyaho & Beristain-Castillo, 2019). For inferential analysis, applications such as MS
Excel and SPSS for data analysis are used. The inferential analysis is followed by
summary statistics and regression analysis.
3.3.2.1 Summary Statistics
Summary statistics help in summarizing and presenting the essence of the sample data.
It provides information about the value in the data set. It gives a brief summary of data
and is especially useful for comparing one set of data to another (Marshall & Jonker,
2010). The median, standard deviation, skewness, kurtosis, and coefficient of variation
are all summary statistics. As a result, the researcher will compute both the dependent
and independent variables' means, standard deviations, and coefficients of variation.
The term mean is used to calculate the average value of a set of values. The standard
deviation indicates how much variance exists within a set of numbers. The coefficient
of variation measures the extent of variance in proportion to the population mean (Sykes
& Gani, 2016).
18
Particular Range Decision
Skewness -3 to +3 If less than zero to -3 left skewness
If equal to zero normal skewness
If higher than zero to +3 right skewness
Kurtosis -7 to +7 If less than zero to -7 leptokurtic kurtosis
If equal to zero normal kurtosis
If higher than zero to +7 leptokurtic kurtosis
Table 1: Skewness and Kurtosis
Source: Kallner (2018)
3.3.2.2 Regression Analysis
Regression analysis is a statistical technique used to estimate the relationship between

variables that have a cause-and-effect relationship (Cooper & Schindler, 2013).
Regression can be performed in one of two ways:
Multiple Linear Regression

The model that comprises more than one regressor in it is called the multi-linear
regression model. In general, the dependent variable y may be related to ‘n’ regressor’s,
x1, x2……in, so that,
𝐶𝑃𝐷 = α + β1 ∗ AV + β2 ∗ 𝐼𝑀 + β3 ∗ 𝑂𝑅 + ϵ
where,
CPD = Consumer Purchase Decision
α = Constant effect of social media marketing
β1 = Beta value of Advertising on consumer purchase decision
β2 = Beta value of Influencer Marketing on consumer purchase decision
β3 = Beta value of Online Review on consumer purchase decision
AV = Advertising
IM = Influencer Marketing
OR = Online Review
ϵ = a random error component
19
Exploratory Factor Analysis (EFA)
Factor study explores the inter-correlations that exist between a large number of items
(questionnaire responses), reducing the items into smaller groups known as factors.
These variables are connected and are often relatively similar in terms of content or
meaning (Hooper, 2012). EFA is used when a researcher wants to find out how many
factors influence variables and which variables 'go together.' EFA performs better with
bigger sample sizes in general (Yong & Pearce, 2013).
KMO and Bartlett’s Test

A statistic called the Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy
demonstrates the percentage of variance in the variables that may be explained by
underlying factors. Bartlett's test of sphericity is a measure of multivariate normality
distribution of a set of distributions and it is used to take a look at the null hypothesis
that the variables in the population correlation matrix are uncorrelated. It investigates
whether your correlation matrix is an identity matrix, implying that your variables are
unrelated and thus unsuitable for structure detection. Hadia et al., (2016), it examines
whether your correlation matrix is an identity matrix, which would indicate that your
variables are unrelated and inappropriate for structure detection. Using KMO in SPSS,
the sample's suitability is assessed. The sampling is adequate or sufficient if KMO is
greater than 0.5. It is advised that the value be at least 0.6; else, the factor analysis result
won't be very helpful (Bölükbaş & Göl, 2021).
Range Acceptable
0.9 to 1.00 Marvelous
0.8 to 89 Meritorious
0.7 to 0.79 Middling
0.6 to 0.69 Mediocre
0.5 to 0.59 Miserable
0.00 to 0.49 Unacceptable
Table 2: KMO and Bartlett’s
Source: Gaskin (2021)
20
Communalities
The communality is the degree to which an item correlates with all other items. The
proportion of each variable's variance explained by the factors is referred to as
commonalities. Initial communalities are estimates of the variance in each variable that
all components or factors can account for (Watkins, 2018). The variance in each
variable accounted for by the components is estimated using extraction communalities.
To balance the variance-covariance matrix of the indicator variables, latent variables
were created using commonalities on a scale of 0.5. Thus, the value of communality is
also a deciding factor in whether or not to include a variable in a factor analysis
(Samuels, 2016).
Total Variance Explained

The proportion of each variable's variance explained by the retained factors is indicated
in this column. The initial solution, extracted component, and rotated component
explain the variance. In the common factor space, variables with high values are highly
represented, while variables with low values are poorly represented field (Yong &
Pearce, 2013).
Common Method Bias (CMB)

CMB arises when estimates of relationships between two or more constructs are biased
due to the use of the same measurement method. Method bias is assumed to be caused
by a variety of factors (Jordan & Troth, 2020). The response tendencies that raters can
apply uniformly across measures are one of the primary causes of CMB. This could be
owing to a respondent's social desirability tendencies, dispositional mood states, or
inclinations to acquiesce or respond in a mild, moderate, or extreme manner (Podsakoff
& Organ, 2012). Similarities in the structure or wording of survey items that elicit
similar replies from respondents, the closeness of items in an instrument, and similarity
in the timing, medium, or place in which measurement data are collected can all
contribute to CMB (Jordan & Troth, 2020).
21
3.5 Plan of Action
A plan of action is a timetable of activities created to complete a project or study.

Throughout the duration of the study, the current researcher will follow the set schedule
and plan. The research project's work is separated into many parts to ensure timely
completion. The current researcher will require this Gantt chart to carry out the
investigation more effectively and within the allotted time frame. The following is the
prepared action plan for the overall research.
Work Schedule
S.N. Activities Weeks
1 2 3 4 5 6 7 8 9 10 11 12 13
1. Explore and finalize the

area of research
2. Perform preliminary
review of literature
3. Design the research
4. Final review of literature
5. Development of method
and techniques for
analysis
6. Collecting the various
data and financial
statement
7. Analyze financial
Statement and financial
ratios
22
8. Perform data
presentation and
analysis
9. Work on closing
remarks
10. Produce first draft of the
study report
11. Perform editing and
refinement of the draft
report
12. Make a flash
presentation to collect
feedback
13. Incorporate feedback
and prepare final report
for university
submission
Table 3: Plan of Action
From the above figure, the vertical axis represents 13 various tasks to perform and the
horizontal axis represents approximately 13 weeks of time. This chart defines the
arrangement of tasks and the required time to complete those tasks.
23
CHAPTER IV: DATA ANALYSIS
In this chapter, we deal with the data presentation, analysis, and findings. Analyzing
data involved reducing and arranging the data, synthesizing, searching for significant
patterns, and discovering what was important. According to Ary et al. (2018),
organizing, interpreting, and summarizing data are the three phases that make up data
analysis. The data collected from the respondent was entered into spreadsheet software,
particularly IBM SPSS, for arranging and computing the data that has been introduced
in the section of the exploration report. The closed-ended questions were given
numerical codes which were done on a varying scale depending on the responses. The
data were analyzed using descriptive analysis and correlation. The data were collected
randomly and entered into SPSS for the systematic analysis and output of data.
4.1 Descriptive Analysis
The descriptive analysis here explains the demographic characteristics of the 112
respondents, their social media usage, and preferences for purchasing products or
services from social media and analyzes the responses of respondents in the
questionnaire based on dependent and independent variables of the study.
4.1.1 Demographic Characteristics
The Socio-Demographic characteristics of the sample that was surveyed are included
in this section. Data are collected from the entire 112 individuals who use social media
for purchasing any products and services. This section contains the gender, age,
education, profession & income of the respondent and has been tabulated and proven
in one kind of diagram so that a clear picture of the Socio-demographic characteristics
of the pattern facts can be interpreted.
24
Table 4: Demographic components
Demographic Profiles Frequency Percentage

Gender
Male 50 44.6%
Female 59 52.7%
Others 3 2.7%
Age
Below 20 11 9.8%
20-29 83 74.1%
30-39 16 14.3%
40-49 1 0.9%
50 and above 1 0.9%
Education Level
School 1 1%
High School 10 9%
Under-Graduate 77 69%
Graduate 18 16%
Post-Graduate 6 5%
Employment Status
Unemployed 4 3.6%
Student 79 70.5%
Employed 16 14.3%
Self-employed 5 4.5%
Business owner 3 2.7%
Others 2 4.4%
Monthly Income (NRs.)
Less than 19,999 75 70%
20,000-39,999 17 15.2%
40,000-59,999 9 8%
Above 60,000 11 9.8%
25
4.1.1.1 Gender
Others
3%
Male
44%
Female
53%
Figure 3: Gender-wise display of respondents
Gender is the physical appearance-based categorization of persons as male, female, or

others. The above figure 3 explains that there are altogether 50 males, 59 females, and
3 others out of a total of 112 respondents which consist of 44%, 53% and 3%
respectively. The researcher observed that the majority of the respondent was female.
26
4.1.1.2 Age of Respondents
90
80
70
60
50
40 83
30
20
10
16
11
0 1 1
Below 20 20-29 30-39 40-49 50 and Above
Figure 4: Age group-wise display of respondent
Age is significant because of its linkage with individual and personal accumulated
knowledge. Figure 4 demonstrates the respondents on the basis of the age group. The
table shows that the total respondents 112 were from below the age of 20 to the age of
50 years old and above. Where 11 respondents were of the age below 20, the highest
respondent was from the age group of 20-29 i.e., 83 respondents, 16 respondents were
from the age group of 30-39, 1 respondent was from the age group of 40-49 and again
1 respondent was from 50 and above.
27
4.1.1.3 Education Level
Post-Graduate School High School
5% 1% 9%
Graduate
16%
Under-Graduate
69%
Figure 5: Education Qualification of respondents
From the figure 5, we can observe that the respondents are from different education
levels i.e. School, High School, Under-Graduate, Graduate, and Post-Graduate. One of
the respondents is from schooling education level, 10 respondents are from high school,
77 are from under-graduate level, 18 are from the graduate level and finally, 6 are from
post-graduate level.
28
4.1.1.4 Employment Status
Others
Business owner
Self-employed
Employed
Unemployed
Student
0 10 20 30 40 50 60 70 80 90
Figure 6: Employment status of respondents
The above figure 6 shows the employment status of the respondents i.e. student,
employed, unemployed, self-employed, business owners, and others. Here, 79
respondents (70.5%) are students, 4 respondents (3.6%) are unemployed, 16
respondents (14.3%) are employed, 5 respondents (4.5%) are self-employed, 3
respondents (2.7%) are business owners and 5 respondents (4.4%) are others.
29
4.1.1.5 Monthly Income
Less than 19,999 20,000-39,999 40,000-59,999 60,000 and above
Figure 7: Monthly Income of respondents
The figure 7 shows the monthly income of the respondents is categorized in four ways.
i.e. (Less than NRs. 19,999), (NRs. 20,000-39,999), (NRs. 40,000-59,999) and (NRs.
60,000 and above). And, 63 respondents, 15 respondents, 7 respondents, and 11
respondents fall under monthly income respectively.
30
4.1.1.6 Social Media Usage
TikTok LinkedIn
YouTube
Facebook
Whatsapp
Instagram
Figure 8: Preference of social media for customer purchase
From the survey as shown in figure 8, we found that there are 88 respondents (78.6%),
1 respondent (0.9%), 14 respondents (12.5%), 2 respondents (1.8%), 6 respondents
(5.4%), and 1 respondent (0.9%), that use Instagram, WhatsApp, Facebook, YouTube,
TikTok, and LinkedIn respectively as social media to purchase products and services.
4.1.2 Research Variables
There are altogether four research variables i.e., 3 independent variables (IV) and 1
dependent variable (DV). The independent variables are Advertising (AV), Influencer
Marketing (IM), and Online Review (OR). Here, the response is collected on the basis
of the Likert scale basis where 1, 2, 3, 4 and 5 represent ‘Strongly Agree’, ‘Agree’,
‘Neutral’, ‘Disagree’, and ‘Strongly Disagree’ respectively.
31
4.1.2.1 Advertising
Advertising as a Likert Scale

determinant of Social 1 2 3 4 5
Media Marketing
Advertising in social 20 43 29 8 12
media has made me (17.86%) (38.39%) (25.89%) (7.14%) (10.71%)
recognize the need of
product or service. (AV1)
I have searched about the 21 53 19 7 12

product or service after I (18.75%) (47.33%) (16.96%) (6.25%) (10.71%)
saw Advertisement
(AV2)
I have evaluated the 20 38 33 8 13

products or service that (17.86%) (33.93%) (29.46%) (7.14%) (11.61%)
was advertised. (AV3)
I have made a purchase 9 45 30 14 14

that was advertised in (8.03%) (40.18%) (26.79%) (12.5%) (12.5%)
social media. (AV4)
I have post-evaluated the 17 36 30 16 13

product or service that I (15.18%) (32.14%) (26.79%) (14.29%) (11.6%)
bought from social
media. (AV5)
Table 5: Likert Scale of Advertising Variable
The above table 5 explains that advertising in social media has made respondents
recognize the need for the product or service (AV1) and 20 out of 112 respondents
strongly agree ‘1’, 43 respondents agree ‘2’, 29 respondents are neutral ‘3’, 8
respondents disagree ‘4’ and 12 respondents strongly disagree ‘5’ with the statement.
32
Similarly, the table summarizes the respondent’s agreeableness on the statements such
as “I have searched about the product or service after I saw advertisement”. And the
response was 18.75%, 47.33%, 16.96%, 6.25% and 10.71% in 1, 2, 3, 4 and 5
respectively. In this way the above table explains the responses to other questions such
as “I have evaluated the products or service that was advertised”, “I have made a
purchase that was advertised in social media” and “I have post-evaluated the product
or service that I bought from social media”.
4.1.2.2 Influencer Marketing
Influencer Marketing as Likert Scale

a determinant of Social 1 2 3 4 5
Media Marketing
I have recognized the 8 43 37 15 9
need of product or service (7.14%) (38.39%) (33.04%) (13.39%) (8.04%)
that influencer promoted
and suggested to buy.
(IM1)
I have searched and 10 52 31 10 9

gathered information (8.93%) (46.42%) (27.77%) (8.93%) (8.04%)
about the product or
service that influencer
promoted. (IM2)

products or service that (7.14%) (43.75%) (27.68%) (14.29%) (7.14%)
influencer promoted and
suggested to buy in social
media (IM3)
33
I have purchased the 12 40 32 19 9
product or service that (10.71%) (35.72%) (28.57%) (16.96%) (8.04%)
influencer promoted and
suggested to buy in social
media. (IM4)

product or service that I (10.67%) (42.8%) (26%) (14.28%) (6.25%)
bought from social media.
(IM5)
Table 6: Likert Scale of Influencer Marketing Variable
The above table 6 explains that influencer marketing in social media has made
respondents recognize the need for the product or service (IM1) and 8 out of 112
respondents strongly agree ‘1’, 43 respondents agree ‘2’, 37 respondents are neutral ‘3’,
15 respondents disagree ‘4’ and 9 respondents strongly disagree ‘5’ with the statement.
Similarly, the table also explains the respondent’s agreeableness on the statements such
as “I have searched and gathered information about the product or service that
influencer promoted”. And the response was 8.93%, 46.42%, 27.77%, 8.93% and
8.04% in 1, 2, 3, 4 and 5 respectively. In this way, the above table explains the responses
to other questions such as “I have evaluated the products or service that influencer
promoted and suggested to buy on social media.”, “I have purchased the product or
service that influencer promoted and suggested to buy on social media.” and “I have
post-evaluated the product or service that I bought from social media.”
34
4.1.2.3 Online Review
Online Review of Other Likert Scale

Buyers as a determinant 1 2 3 4 5
of Social Media
Marketing
Online Review of other 18 58 27 5 4
buyers in social media has (16.07%) (51.79%) (24.11%) (4.46%) (3.57%)
made me recognize the
need of product or
service. (OR1)
I have searched and 13 61 25 9 4

gathered information (11.61%) (54.46%) (22.32%) (8.04%) (3.57%)
about the product or
service from online
review of other buyers.
(OR2)

products or service on the (11.61%) (50.9%) (26.78%) (8.03%) (2.68%)
basis of online review of
other buyers about the
product or service. (OR3)
I have purchased the 22 65 18 6 1

product or service (19.64%) (58.04%) (16.07%) (5.36%) (0.89%)
considering online
reviews of other buyers in
social media. (OR4)
35
product or service that I (15.18%) (32.14%) (26.79%) (14.29%) (11.6%)
(OR5)
Table 7: Likert Scale of Online Review Variable
The above table 7 explains that online review in social media has made respondents to
recognize the need of the product or service (OR1) and 18 out of 112 respondents ‘1’,
58 respondents ‘2’, 27 respondents are ‘3’, 5 respondents ‘4’ and 4 respondents strongly
disagree ‘5’ with the statement.
Similarly, the table also explains the respondent’s agreeableness on the statements such
as “I have searched and gathered information about the product or service from online
review of other buyers”. And the response was 11.61%, 54.46%, 22.32%, 8.04% and
3.57% in 1, 2, 3, 4 and 5 respectively. In this way the above table explains about the
responses in other questions such as “I have evaluated the products or service on the
basis of online review of other buyers about the product or service”, “I have purchased
the product or service considering online reviews of other buyers in social media” and
“I have post-evaluated the product or service that I bought from social media”.
36
4.1.2.4 Consumer Purchase Decision
Consumer Purchase Likert Scale

Decision 1 2 3 4 5
I have decided to buy any 13 57 29 9 4
products or services from (11.6%) (50.9%) (25.9%) (8.03%) (3.57%)
social media. (CPD_SM)
My consumer purchase 8 52 37 11 4
decision is influenced by (7.14%) (46.43%) (33.04%) (9.82%) (3.57%)
advertisements. (CPD_A)
decision is influenced by (10.71%) (39.29%) (33.04%) (14.28%) (2.68%)
celebrities or influencer
marketers. (CPD_IM)
decision is influenced by (12.5%) (50%) (25%) (8.93%) (3.57%)
online reviews of other
buyers (CPD_OR)
Table 8: Likert Scale of Consumer Purchase Decision Variable
This is the dependent variable table that is used in questionnaire to process the data.
The first row of data collection questions the respondent if they have bought the product
or service form social media (CPD_SM). In that question, 13 respondents respond to
‘1’, 57 respondents to ‘2’, 29 respond to ‘3’, 9 respond to ‘4’ and 4 responds to ‘5’.
Similarly, it calculates the responses of CPD_A, CPD_IM, and CPD_OR.
37
4.3 Inferential Analysis
The inferential analysis is used to apply the results of a random sample to the population
from which the sample was derived (Monsen, 2018). This section contains detailed
information on the impact of social media marketing factors i.e., advertising, influencer
marketing, and online review on the consumer purchase decision. The data discovered
and analyzed throughout the survey are provided and summarized.
4.3.1 Descriptive Statistics
The given table displays the total number of observations, lowest and maximum value,
mean, standard deviation, skewness and kurtosis values from 4 constructs. It also shows
the descriptive for the variables used in the regression estimation as causes and
indicators.
Std.
N Minimum Maximum Mean Deviation Skewness Kurtosis
Std. Std.
Statistic Statistic Statistic Statistic Statistic Statistic Error Statistic Error
AV1 112 1.00 5.00 2.5446 1.18465 .686 .228 -.230 .453
AV2 112 1.00 5.00 2.4286 1.18332 .937 .228 .111 .453
AV3 112 1.00 5.00 2.6071 1.20328 .580 .228 -.381 .453
AV4 112 1.00 5.00 2.8125 1.15104 .556 .228 -.563 .453
AV5 112 1.00 5.00 2.7500 1.21922 .372 .228 -.745 .453
IM1 112 1.00 5.00 2.7679 1.03960 .530 .228 -.224 .453
IM2 112 1.00 5.00 2.6071 1.04284 .801 .228 .191 .453
IM3 112 1.00 5.00 2.7054 1.03661 .620 .228 -.227 .453
IM4 112 1.00 5.00 2.7589 1.10890 .372 .228 -.565 .453
IM5 112 1.00 5.00 2.6250 1.05800 .571 .228 -.264 .453
OR1 112 1.00 5.00 2.2768 .91247 .940 .228 1.302 .453
OR2 112 1.00 5.00 2.3750 .92147 .939 .228 .929 .453
OR3 112 1.00 5.00 2.3929 .89400 .753 .228 .684 .453
OR4 112 1.00 5.00 2.0982 .80494 .874 .228 1.296 .453
OR5 112 .00 5.00 2.4196 .86616 .761 .228 1.261 .453
CPD_SM 112 1.00 5.00 2.4107 .92565 .822 .228 .723 .453
CPD_A 112 .00 5.00 2.5268 .91985 .521 .228 .727 .453
CPD_IM 112 1.00 5.00 2.5893 .95440 .341 .228 -.245 .453
CPD_OR 112 1.00 5.00 2.4107 .94491 .784 .228 .544 .453
38
Valid N 112
(listwise)
Table 9: Descriptive Statistics
There are 112 respondents overall in table 9 provided; hence, there are no missing
observations. It can be seen that the mean and standard deviation have respective ranges
of 2 to 2.9 and 0.80 to 1.25. The standard deviation shows a low value, which means
that most of the responses are not very spread from the mean data.
The accepted range of Skewness value should be +2 to -2 and the Kurtosis value should
be +3. Thus, the values of Skewness and Kurtosis are outside the range of normality.
4.3.2 Exploratory Factor Analysis
Exploratory Factor Analysis was done using Varimax rotation performed through SPSS
for data extraction after the data was found to be suitable for analysis. It helped in
finding the factors that determined the relationship among the different variables. The
various steps of Exploratory factor analysis such as KMO and Bartlett’s test,
communalities, total variance explained, and rotated component matrix was calculated
to determine the minimum number of essential factors are component matrix were
calculated to determine the minimum number of essential factors that are a higher
number of variables and also for determining the relationship among various variables.
4.3.3 KMO and Bartlett’s Test
During the factor analysis, the KMO and Bartlett's Test helps to determine the
appropriateness and suitability of the sample data.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .896
Bartlett's Test of Approx. Chi-Square 2204.739
Sphericity df 171
Sig. .000
Table 10: KMO and Bartlett’s Test
In the given table 10, we can see that the KMO value is greater than 0.5 i.e., 0.896
which means that the factor analysis is useful with our data and the data doesn’t have
39
any issues of reliability and validity. There is sufficient connection among the
components using the Kaiser-Meyer-Olkin Measure of Sampling Adequacy for
individual variance was revealed.
The value of Bartlett’s test of Sphericity is 0.000 which is less than 0.05 that indicates
factor analysis is useful with our data fit further process. The Bartlett’s Test of
Sphericity’s content was deemed appropriate, and the test’s results offered enough
clarity to warrant the application of exploratory factor analysis.
Communalities
Communalities Croanbach’s Alpha
Initial Extraction
AV1 1.000 .693 .880
AV2 1.000 .747
AV3 1.000 .735
AV4 1.000 .775
AV5 1.000 .550
IM1 1.000 .763 .925
IM2 1.000 .791
IM3 1.000 .830
IM4 1.000 .854
IM5 1.000 .775
OR1 1.000 .799 .926
OR2 1.000 .849
OR3 1.000 .808
OR4 1.000 .762
OR5 1.000 .765
CPD_SM 1.000 .939 .939
CPD_A 1.000 .821
CPD_IM 1.000 .869
CPD_OR 1.000 .941
Extraction Method: Principal
Component Analysis.
Table 11: Communalities
In order to balance the variance covariance matrix of the indicator variables, four latent
variables were produced using communalities on a scale of 0.5. The overall variable in
the table 11 has an extraction value that is more than 0.5, indicating that the entire
variable satisfies the extractive collective condition. The communalities between the
40
measured items loaded on EFA model in this study ranged from 0.55 for AV5 to 0.941
for CPD_OR. As a result, we can use all of these variables in our factor analysis.
Cronbach’s Alpha is used to measure internal consistency. The higher value of
Cronbach’s alpha indicates greater internal consistency. Here, our finding revealed that
the value of Cronbach’s alpha is greater than 0.70 which represent good internal
consistency among variables.
Component Analysis
There are four variables i.e., Advertising, Influencer Marketing, Online Review and
Consumer Purchase Decision that needs to be analyzed for calculating rotated
component matrix. The loadings of the each of items of the four constructs that were
characterized in the EFA are presented in the rotated component matrix in Table 4.3.4.
Component
1 2 3 4
AV1 .736
AV2 .772
AV3 .778
AV4 .818
AV5 .635
IM1 .808
IM2 .801
IM3 .770
IM4 .800
IM5 .720
OR1 .785
OR2 .814
OR3 .782
OR4 .749
OR5 .768
CPD_SM .802
CPD_A .705
CPD_IM .742
CPD_OR .815
Table 12: Rotated Component Matrix
The table 12 contains the rotation factor loadings, which represents the weights
assigned to the variables for each component as well as their association with each
other. Coefficient of correlation between statements and a factor, were all found to be
greater than 0.50 for all of the items. The table 4.3.4 have presented that the first five
41
variable AV1, AV2, AV3, AV4 and AV5 are correlated with component 3. The other
five variable IM1, IM2, IM3, IM4 and IM5 are correlated with component 2. Likewise,
OR1, OR2, OR3, OR4 and OR5 are correlated with component 1 and CPD_SM,
CPD_A, CPD_IM and CPD_OR are correlated with component 4.
Common Method Bias

Extraction Sums of Squared
Initial Eigenvalues Loadings
% Of % Of Cumulative
Component Total Variance Cumulative % Total Variance %
1 8.549 44.995 44.995 8.549 44.995 44.995
2 4.238 22.304 67.299
3 2.305 12.134 79.433
4 1.398 7.359 86.792
5 .490 2.579 89.371
6 .348 1.833 91.204
7 .315 1.657 92.861
8 .263 1.385 94.246
9 .228 1.198 95.444
10 .199 1.048 96.492
11 .161 .847 97.339
12 .138 .726 98.065
13 .119 .626 98.691
14 .097 .511 99.202
15 .059 .312 99.514
16 .042 .219 99.734
17 .033 .175 99.908
18 .014 .073 99.981
19 .004 .019 100.000
Table 13: Total Variance Explained
The table 13 shows the loading of each item of the four constructs that were
characterized in the EFA. It shows about the total variance explained. Here are 19
components extracted from SPSS. The cumulative percentage is 100% which means
the 4 factors explained 44.995% of the variance.
42
4.4 Hypothesis Testing
Hypothesis testing is among the most misunderstood quantitative analysis methods

from data science. Despite its seeming simplicity, it has complex interdependencies
between its procedural components. In this paper, we discuss the underlying logic
behind statistical hypothesis testing, the formal meaning of its components and its
connections. .(Emmert-Streib & Dehmer, 2019)
Hypothesis Path Beta R2 T-Value P-Value Conclusion

Coefficient
H1 AV CPD .552 .385 8.300 .000 Significant
H2 IM CPD .610 .424 9.000 .000 Significant
H3 OR CPD .781 .484 10.161 .000 Significant
Table 14: Hypothesis Testing
H1: There is a positive and significant relationship between advertising in social media
and consumer purchase decisions. As indicated in table 4.4, the P-value is 0.000 which
is smaller than 0.05 (p < 0.05), it shows that there is a significant relationship between
IV and DV (i.e., AV and CPD respectively). And as beta ‘β’ is greater than 0, i.e., β =
0.552, there is a positive relationship between AV and CPD.
Hence, the result supports hypothesis H01.
H2: There is a positive and significant relationship between influencer marketing in

social media and consumer buying decisions. The P-value is 0.000 which is smaller
than 0.05 (p < 0.05), indicating that IV and DV have a significant relationship (i.e., IM
and CPD respectively). Additionally, since beta ‘β’ is greater than 0, i.e., β = 0.610,
there is a positive relationship between IM and CPD.
Hence, the result accepts the hypothesis.
H3: There is a positive and significant relationship between online review in social
media and consumer purchase decision. The P-value is 0.000 which is smaller than 0.05
(p < 0.05), it shows that there is a significant relationship between IV and DV (i.e., AV
and CPD respectively). And as beta ‘β’ is greater than 0, i.e., β = 0.781, there is a
positive relationship between AV and CPD.
Therefore, the conclusion supports the hypothesis.
43
4.5 Summary of Key Findings
The present researcher developed many conclusions that helped in reaching the
research’s conclusion based on the analysis and presentation of all the facts discussed
above. The present researcher found that there is a significant and positive relationship
between advertisement and consumer purchase decision, influencer marketing and
consumer purchase decision, and also online review and consumer purchase decision.
The present research has identified the following key points:
a. In the survey done, it shows that the number of female respondents is greater
than that of male and others respondents. i.e., 59, 50, and 3 respectively.
b. The highest number of respondents were of the age group 20-29 which is 83
respondents out of 112.
c. Most of the respondents among 112 were undergraduate and from the
employment status student. 69% of the respondent were undergraduate whereas
the least percentage of respondents i.e., 1% was from school.
d. 63 respondents were from the income level of less than NRs. 19,999.
e. And most of the respondents 78.6% uses Instagram as social media for the
purchase.
Based on these points, the key findings of this research are:
a. There is a significant and positive relationship between advertising and

b. There is a significant and positive relationship between influencer marketing
and consumer purchase decision.
c. There is a significant and positive relationship between online review and
44
Chapter 5: Summary, Conclusion, and Recommendations
The main purpose of this chapter is to offer overall findings, analysis, and conclusion
regarding the study on social media marketing on consumer purchase decisions. This
chapter has been divided into five distinct sections. This first section includes the
summary of the study. The second section includes the relevant discussion which is
followed by the lessons learned and the overall conclusion.
5.1 Summary of the Study
The primary purpose of this research is to identify the major factors of social media
marketing that affects consumer purchase decision because social media marketing
influences consumer purchase decision.
The present era is highly influenced by social media which is why marketing through
social media is a cost-effective and efficient way to advertise products and services. It
was a valuable step to assess the role of social media in the field of marketing. The aim
of this research is to explore the impact of the determinants of social media marketing
on a consumer purchase decision. The current researcher considered examining the gap
i.e., advertising, influencer marketing, and online reviews as determinants of social
media marketing in a consumer purchase decision.
The data was gathered through both primary and secondary research. The secondary
data was used for a literature review of the research conducted by various researchers
throughout the world. The current researcher used EndNote 20, a reference managing
software for updating proper citation in reference. The current researcher used a survey
questionnaire as the major source of information to fulfill the objectives of collecting
responses from the consumers who use social media to purchase the products or
services. The present researcher has chosen conclusive research and descriptive
research under quantitative research design to examine the effect of social media
marketing to consumer purchase decision.
45
To conduct the research, the researcher collected 112 responses from individuals who
have purchased any products or services from social media such as Facebook,
Instagram, TikTok, YouTube, WhatsApp, and LinkedIn. Here, most of the respondents
were female (52.7%), age group of 20-29 by 74.1%, educational background of
undergraduate (69%) being a student (70.5%) having an income of less than NRs.
19,999 (70%).
The data collected through a survey questionnaire were administered by Statistical

Package for Social Science (SPSS) for Windows, Version 20 which facilitates the
present research with data coding, transcribing, refining and analyses. After the data
were collected the data were taken into the excel sheet for further analysis then the data
were coded and taken to SPSS for further test.
5.2 Conclusion
The research work has provided useful insights into understanding the relationship
between social media marketing and consumer decision purchase. The objective of this
study was to analyze the impact of social media marketing on consumer purchase
decisions. The consumer purchase decision was sued as the dependent variable, and
three independent variables such as advertising, influencer marketing, and online
reviews. The data was collected from primary sources.
On the basis of the data presentation, analysis, and study findings of the present
research, it can be concluded that advertising is a very important factor in social media
marketing that affects the consumer purchase decision. Also, influencer marketing as a
factor of social media marketing is an essential element that affects the consumer
purchase decision. Finally, the most vital factor of social media marketing i.e., the
online review has the most significant and positive relationship with consumer purchase
decisions.
This makes all the variables of independent variable as factors of social media
marketing has a significant and positive relationship with the dependent variable i.e.,
consumer purchase decision. Hence, the social media marketing is a very important
factor that affects the consumer purchase decision.
46
5.3 Recommendations
Here, the present researcher would like to produce the following recommendation.
Recommendation for managerial implication based on the findings, discussion and
conclusion the present researcher would like to craft a few suggestions for managerial
implications.
With the emergence and availability of the Internet, the importance of Internet
marketing is clearly understood by today's marketers and business owners. Social media
platforms help in maintaining a good relationship with consumers through an online
environment. Here, the present researcher would like to give a few suggestions for
managerial implications:
1. Companies may look forward to investing in advertising on social media and
hence improve their ad's performance.
2. Businesses should focus on creating a great platform for generating online
reviews review portals on social media. For instance, businesses can ‘Pin’ the
customer’s positive reviews on Instagram profiles and share the positive
reviews of customers on Instagram Stories.
3. Businesses should hire attractive celebrity influencers that have a great
following on social media that helps to enhance the brand perception and
attitude in consumers’ minds which helps to generate consumer purchase
decisions.
4. Companies should focus on targeting students and employees since they
represent the greatest portion of social media users.
5. Companies should make an effort to make maximum use of the opportunities
provided by the Internet.
6. The present study revealed that out of various types of social networking sites
(i.e., social media), Instagram is highly preferred by the social media users to
purchase products or services followed by Facebook and TikTok.
7. Online review optimizations in social media mainly Instagram can influence
consumer purchase decisions and achieve the organizational goal.
Therefore, organizations should be aware while choosing the right social media to
account for the promotion
47
5.4 Areas for Future Study
The present research can be highly effective for conducting any additional and similar
type of research in the same field. The present researcher would like to give some
suggestions for the research initiatives to be carried out by the researchers in the future
endeavor:
1. The present researcher has limited the present research to Kathmandu Valley
only. The further researcher can conduct the survey outside Kathmandu Valley
in order to get a complete picture of customer perception.
2. The present researcher has only used a quantitative research methodology; the
further research should consider mix research methodology i.e., both qualitative
and quantitative methods.
3. To get more precise result, further research in similar field of interest must use
both descriptive and casual research design unlike in the present research where
only descriptive research design is used.
4. What are other factors of social media marketing that affects consumer purchase
decision? Such as Online support, engaging contents, call to action posts, etc.
5. In order to understand the effect of social media marketing in customer
perception about the product or services.
6. What are other factors of social media marketing that affects consumer purchase
decision? Such as Online support, engaging contents, call to action posts, etc.
48
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APPENDIX A: SURVEY QUESTIONNAIRE
Namaste!
I am Sajan Shrestha, Bachelor of Business Administration (BBA) student at

Kathmandu University School of Management (KUSOM), studying at Nepal College
of Management (NCM) in Lalitpur, Nepal.
I've been conducting a survey titled A STUDY ON SOCIAL MEDIA MARKETING

IN CONSUMER PURCHASE DECISION as part of my academic requirement. I
needed to conduct a general public survey of individuals who had purchased any
products or services from any business as a result of social media marketing as part of
my survey design for this project. In this respect, it gives me immense pleasure to
request you to accept my proposal to consider yourself as one of the valuable
respondents in this survey.
For this, I would like to request you to contribute about 10 minutes of your valuable
time to respond to the questions attached in the subsequent sections. I want to assure
you that all information provided by you will be treated as highly confidential and
used for academic purposes only.
Section 1: Demographic Details
Please choose appropriate number and place it in the corresponding box as far as applicable.
Q1. Please specify your gender:
Male………………………………………………………..………1
Female……………………………………………………………...2
Others……………………………………………………………....3
Q2. Please select the answer that best describes your age:
Below 20…………………………………………….…….……….1
20-29 …………………………………….………….…….………..2
30-39……………………………………...…………………………3
40-59……………………………………….………..………………4
50 and above..…………………………………………...…………..5
55
Q3. Please select the answer that best describes your current level of education:
School………………………….…………………………………1
High School……………...…………………………………..…...2
Under-Graduate…………………………………………………..3
Graduate…………………………………………………………..4
Post-Graduate.…………………………………………………….5
Q4: Your professional line of involvement:
Unemployed…………………………………………….………….1
Self-Employed……………. ……………………………….………2
Employed…….……………………………………….….…………3
Business Owner.………………………………………...………….4
Students…………………………………………………………….5
Q5: Your Monthly Income (NRs.)
Less than 19,999……………………………………………………..1
20,000-39,999………………………………………………………..2
40,000-59,999………………………………………………………..3
Above 60,000…………………………………………………..……4
Section 2: A study on Social Media Preference to purchase any products or services.
Q6: Which social media do you use the most to buy the products or services?
Instagram…………………………………………………………….1
TikTok……………………………………………………………….2
Facebook……………………………………………………………..3
YouTube……………………………………………………………...4
LinkedIn………………………………………………………………5
WhatsApp…………………………………………………………….6
56
Section 3: A Study on Factors of Social Media Marketing in Consumer Purchase
Decision
To what extent do you agree with the following statement?
Please check out (✓) the box next to the number that best matches your opinion. (Scale for
each opinion: ‘1’ Strongly Agree, ‘2’ Agree, ‘3’ Neutral, ‘4’ Disagree and ‘5’ Strongly
Disagree)
Advertising as a determinant of Social Media 1 2 3 4 5

Marketing
Advertising in social media has made me recognize
the need of product or service.
I have searched about the product or service after I saw
Advertisement
I have evaluated the products or service that was
advertised.
I have made a purchase that was advertised in social
media.
I have post-evaluated the product or service that I
Influencer Marketing as a determinant of Social 1 2 3 4 5
Media Marketing
I have recognized the need of product or service that
influencer promoted and suggested to buy.
I have searched and gathered information about the
product or service that influencer promoted.
I have purchased the product or service that influencer
promoted and suggested to buy in social media.
I have purchased the product or service that influencer
promoted and suggested to buy in social media.
Online Review of Other Buyers as a determinant of 1 2 3 4 5
Social Media Marketing
Online Review of other buyers in social media has made
me recognize the need of product or service.
I have searched and gathered information about the
product or service from online review of other buyers.
I have evaluated the products or service on the basis of
online review of other buyers about the product or
service.
I have purchased the product or service considering
online reviews of other buyers in social media.
57
Customer Purchase Decision 1 2 3 4 5
I have decided to buy any products or services from

social media.
My consumer purchase decision is influenced by
advertisements.
My consumer purchase decision is influenced by
celebrities or influencer marketers.
My consumer purchase decision is influenced by online
reviews of other buyers
58

Sajan Final Research

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A STUDY ON SOCIAL MEDIA MARKETING ON CONSUMER

A business Research Report

I am very thankful to Nepal College of Management for providing me an opportunity

Mr. John Koirala Mr. Prem Prasad Silwal

Following a successful presentation and evaluation by the Research Evaluation

Research Evaluation Committee

Mr. John Koirala Signature:_______________

Mr. Prem Silwal Signature:_______________

Prof. Dr. Sushil Bhakta Mathema Signature:_______________

RECOMMENDATION ............................................................................................... iii

CERTIFICATE OF ACCEPTANCE ............................................................................ iv

TABLE OF CONTENTS .............................................................................................. vi

LIST OF TABLES ........................................................................................................ ix

LIST OF FIGURES ....................................................................................................... x

LIST OF ABBREVIATIONS ....................................................................................... xi

CHAPTER I: INTRODUCTION ................................................................................... 1

1.1 Background of the Study ...................................................................................... 1

1.2 Statement of the problem ..................................................................................... 2

1.3 Objectives of the Study ........................................................................................ 4

1.4 Significance of the Study ..................................................................................... 4

1.5 Limitations of the study........................................................................................ 4

1.6 Organization of the study ..................................................................................... 5

CHAPTER II: LITERATURE REVIEW ...................................................................... 6

2.2 Theoretical Review .............................................................................................. 7

2.2.1 Social Media Marketing ................................................................................ 7

2.2.2 Consumer Purchase Decision ........................................................................ 8

2.2.3 Advertising and Consumer Purchase Decision ............................................. 9

2.2.4 Influencer Marketing and Consumer Purchase Decision ............................ 10

2.2.5 Online Customer Reviews and Consumer Purchase Decision .................... 10

2.3 Empirical Review ............................................................................................... 11

2.4 Research Gap...................................................................................................... 12

CHAPTER III: RESEARCH METHODOLOGY ....................................................... 15

3.1 Research Design ................................................................................................. 15

3.2 Research Method ................................................................................................ 16

3.2.1 Study Area and Population .......................................................................... 16

3.2.2 Sources and Nature of Data ......................................................................... 16

3.2.3 Sampling Techniques .................................................................................. 17

3.3 Data Analysis ..................................................................................................... 17

3.3.1 Descriptive Analysis .................................................................................... 17

3.3.2 Inferential Analysis...................................................................................... 18

3.3.2.1 Summary Statistics................................................................................ 18

3.3.2.2 Regression Analysis .............................................................................. 19

Multiple Linear Regression ........................................................................... 19

Exploratory Factor Analysis (EFA) .............................................................. 20

KMO and Bartlett’s Test ............................................................................... 20

Total Variance Explained .............................................................................. 21

Common Method Bias (CMB) ...................................................................... 21

3.5 Plan of Action..................................................................................................... 22

CHAPTER IV: DATA ANALYSIS ............................................................................ 24

4.1 Descriptive Analysis .......................................................................................... 24

4.1.1 Demographic Characteristics ....................................................................... 24

4.1.1.2 Age of Respondents ............................................................................... 27

4.1.1.3 Education Level .................................................................................... 28

4.1.1.4 Employment Status ................................................................................ 29

4.1.1.6 Social Media Usage .............................................................................. 31

4.1.2.1 Advertising ............................................................................................ 32

4.1.2.2 Influencer Marketing ............................................................................ 33

4.1.2.3 Online Review ....................................................................................... 35

4.1.2.4 Consumer Purchase Decision ............................................................... 37