Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the review of related literature and studies of the
study.

Social Media Marketing

Social media refers to online applications, platforms, web tools or

technological systems that facilitate collaboration and con tent sharing

between community members (Kaplan and Haen lein, 2010 as cited in

Cheung, Pires, Leung, and Ting, 2021) where Facebook, Instagram,

LinkedIn, WeChat, Blog and Twitter are some of the examples (Tess,

2013). As time went by, social media evolved from a mere source of

entertainment into a serious and effective marketing and

communication tool (Baylon, F., Baylon, M., Espina, Marigondon,

Nueva, & Osano, 2019). Businesses have multiple ways to perform

social media marketing—including the consideration of different

messages and activities, resulting in conceptual richness that

benchmarks social media marketing as a multidimensional concept

(Ngai et al., 2015; Pham and Gammoh, 2015).

A study made by Cheung, Pires, Leung, and Ting (2021),

discovered that the importance of social media marketing activities in

strengthening consumers’ intention for value co-creation and

consumer-brand engagement is limited. The study examines the role of

SMM in building value co-creation and CBE, as well as repurchase

intention and on-going search behavior as behavioral responses. the

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data were gathered from a survey of 392 smartphone users in China

and Hong Kong, They found out that effective SMM strategies lead to

the strengthening of value co-creation, CBE, repurchase intention and

ongoing search behavior. The findings also enrich the marketing

literature by showing that value co-creation acts as an antecedent of

CBE, driving consumers’ behavioural intention, reflected by on-going

search behaviour and repurchase intention.

In a study conducted by Calleja, Baluyan, and Babon (2019), they

determined whether social media is an effective tool in the marketing

activities of selected businesses. The study makes use of the

descriptive correlational design to assess which certain variables were

related to determine if a significant relationship occurs. Respondents of

the study are 100 conveniently selected social media consumers in

Pasay City who were 15 years old and above. The respondents usually

spend 1 to 3 hours two times a day socializing mostly with Facebook,

Twitter, and Instagram of which Lazada is the brand where they are

commonly exposed to as ads in the social media. They found out that

social media marketing is effective in terms of getting the attention

(M=3.90), interest (M=4.06), and desire (M=3.92) of the respondents

towards the ads seen in the social media. Attention and time spent in

the use of social media is X2 = 28.983, d.f.=16 and p=0.024 which is

less than É‘=0.05 showing a significant relationship between the two

variables.

Consumer Buying Behavior

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Consumer buying behavior or buyer behavior is the concept

which answers what, why, how, when, and where an individual makes

purchase (Amoguis, 2017). Furthermore, Team (2020), explains that

consumer buying behavior is the actions taken (both on and offline) by

consumers before buying a product or service. This process may

include consulting search engines, engaging with social media posts, or

a variety of other actions. Belmis (2015), explained that prevailing

buying behavior concentrated on problem recognition, consumer

information processing, evaluation of alternatives and purchase and

post purchase evaluation. The study concluded that the consumer who

was highly satisfied with the purchased made was more likely to make

a repeat purchase. The consumer was also inclined to endorse the

product to other students and friends. If the consumer was not fully

satisfied, he/she was more likely to consider other brands first before

making a repeat purchase of the product first bought.

The understanding of consumer behavior is a defining matter for

buyers and a success key to the marketers. Qazzafi (2019) concluded

that consumers purchase the products when the need arises, and they

use all five stages of consumer buying decision making process:

consists of Problem recognition, Information search, Evaluation of

alternatives, Purchase decision, and post-purchase behavior. during

purchase of high involvement (costly products) while the probability of

skipping one or more than one stages are more in low involvement

(daily usage products). This is supported by the study of Regmi (2022),

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which highlights that some of the determinants affecting consumer

buying behavior in Nepal is the price fairness and availability of

products. Additionally, there are four main factors that directly affect

consumer buying behavior such as Personal factor, Psychological

factor, Social factor, and Economic factor. It is also stated that the

surrounding of the consumer plays a major role on influencing its

buying decision (Qazzafi, 2020), which align the findings of Regmi

(2022) that an individual may have a very favorable decision toward

purchasing industrial products, if he/she believes that buying those

products helps them to enhance their status to the society.

Social media marketing and consumer buying behavior

Social media marketing significantly influences consumer buying

behavior wherein consumers are influenced by process factors and

external stimuli brought by social media marketing (Jacinto, Pintado,

Ibañez, Dagohoy, Buladaco, 2021). However, consumers in the digital

age are quite selective while making a purchase (Varghese & Agrawal,

2021). As such, brand owners need to focus on the timing and

consistency of posts to grow a social media audience (Sumague &

Briones, 2022).

Consumer satisfaction mediates the relationship between social

media marketing and consumer buying behavior (Palalic, Ramadani,

Gilani, Gërguri-Rashiti, & Dana, 2021). Aside from that, social media

influencers, targeted advertisements, and customer service contribute

to the purchasing behavior (Autio, 2020). Observing social media

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marketing's prospects in the age of digital business, through the

elements of emerging media platforms, marketers can customize their

strategy to make their products more appealing to current and

potential buyers (Khan, 2021).

As stated from the abovementioned literatures and studies,

brand owners and online marketers should understand the importance

of social media to encourage the buying behaviors of the consumers.

Consequently, it is crucial for both the marketers and consumers to

find out how different factors such as brand image, price fairness,

social signals, and product quality influence (both positively and

negatively) the decision-making process.