Apeksha Hooda, Ankur / East Asian Journal of Business Management 8-3 (2018) 5-12 5

Print ISSN: 2234-3040 / Online ISSN 2234-3059

doi:10.13106/eajbm.2018.vol8.no3.5

Acceptance of Social Media as a Marketing Tool : A Quantitative Study

Apeksha Hooda*, Ankur**
Received: December 29, 2017. Revised: February 17, 2018. Accepted: July 15, 2018.

Abstract
Purpose - The purpose of current paper is to identify features of advertisements at social media that generate the ad-click
and to further identify if these advertisements lead to purchase. If no purchase is made, then reasons for not making
purchase are identified. Users' purchase experience after users clicked at advertisements are also studied.
Research design, data, and methodology - Research design followed is exploratory research, where various factors leading
to ad-clicks and generating purchase at social media platform were explored. Raw data was gathered by means of survey
among a sample of 185 respondents in India using online structured questionnaire. GLM model and multinomial regression
were used to analyze the data.
Results - Several factors including endorsement by friends, advertisement aesthetics, product reviews, and aggressive pricing
played major role in generating ad-clicks. Major impediment to purchase on were product misrepresentation in advertisement,
false discounts, and site security. Female users clicked more on social media advertisements and made more purchases
compared to their male counterpart.
Conclusions - Social media advertisements have significant positive effect on buying behavior of online customers.
Transactions culminating from social media ad-click generated significant positive experience for social media users. Thus,
social media can be effective marketing tool.

Keywords: Social Media (SM), Social Media Marketing (SMM), Advertisement (Ad), Facebook, Buying Behavior.

JEL Classifications: M10, M20, M30, M31, M37.

1. Introduction With the introduction of Web 2.0 technologies, human

interaction with social media has reformed significantly. As a
The rapid growth of social media platforms has result, market analysis methodologies have undergone 360
permanently altered the way in which consumers interact degree change. Earlier businesses relied on field surveys to
with each other and organizations. Speed of online identify user preferences. Now same firms utilize social
communications and numerous online information sources media sites like Facebook, Twitter to analyze users’
have made advertising at social media more lucrative preference, taste, and what they desire. Inexpensive access
(Duffett, 2015). to the internet has opened up doors to social media
Historically main purpose of social media was to enable marketing and made it possible for companies to reach out
people with common interests to share information, and to millions of customers in a extolling way that was not
express opinions. However, social media use is no longer previously possible(Hansson et al., 2013). Further, increased
limited as a communication tool to the users sharing use of smartphones and mobile phones have also spurred
common interests (Barreto, 2013). Marketers have begun to the social media usage (Oviedo-García et al., 2014).
realize the influence of social community in terms of Few organizations will afford to forgo such opportunity
interactivity that comprises of personalized sections, shopping cost of utilizing social media into its marketing strategy. But
experiences, greater convenience, and widespread information the problem in emerging countries is lack of research on
search (Duffett, 2015). utilization of social media as a marketing tool (Duffett, 2015).
Previous researches on social media as a marketing tool
* First Author and Corresponding Author, Senior Research Fellow, are focusing more on identifying intention to purchase,
Faculty of Management Studies, University of Delhi, Delhi, India. attitude towards online shopping, consumer perception
Tel: +91-9582388451, E-mail: [email protected] towards online shopping, shopping orientation, online
** Manager HR, KEC International, RPG Group, Gurugram, India. shopping habit, website design and attributes, and
E-mail: [email protected] demographic factors (Duffett, 2015; Gong et al., 2013; Jiang
6 Apeksha Hooda, Ankur / East Asian Journal of Business Management 8-3 (2018) 5-12

et al., 2013; Gehrt et al., 2012; Rajamma et al., 2009; directly to the targeted audience in an effective manner and
Khalifa & Liu, 2007; Monsuwéet et al., 2004). No study has to build strong relationships with them (Hopkins, 2012).
been conducted on identification of social media Social media marketing delivers both direct and indirect
advertisement features that would lead to ad-clicks. Until or value to businesses (Hopkins, 2012). Past researches have
unless advertisement is appropriate and objective, no confirmed that social media marketing do have positive
consumer is going to click on it. It is imperative that influence on intention to purchase and final purchase
businesses utilizing social media marketing have complete (Duffett, 2015).
understanding of all advertisements' features that lead to Since social media tools like Facebook are inexpensive,
ad-clicks, especially in terms of demographic characteristics quick to set up, and do not require technical expertise to
of users clicking on advertisement. This will enable online create a page or post an advertisement (Hopkins, 2012).
retailers to target their marketing expenditure on those ad Therefore, almost every business now has a Facebook page
features and demographic characteristics that yield the to mark its presence over social media where each and
maximum response. Thus, the current research has been every user’s action can minutely be followed (Vejacka,
undertaken with following objectives presented as research 2012). Facebook pages enable brand to attract more
questions (RQ): customers, identify online customers, effectively communicate
with them, and understand their needs and expectations
RQ1: Are advertisements posted at social media actually
(Hopkins, 2012).
clicked by users and if yes, do they really lead to
The rapid growth of social media platforms has altered
purchase?
the way the consumers interact with each other and
First null Hypothesis has been formed here. organizations. Reaching out to millions of customers is no
H01: Ads posted at social media has no significant longer an issue (Hansson et al., 2013). What matters is how
positive influence on buying behavior of online quickly brand is targeting its customer (Duffett, 2015). Using
customers. social media, customer can directly speak to the businesses
RQ2: What factors refrain consumer from clicking ads about his/her desires. Therefore, when a business uses
posted at social media? social media as a marketing channel, it has an opportunity
RQ3: What factors contribute to ad-clicks at social media? to influence the quality of customer service (Duffett, 2015;
RQ4: What factors refrain user from making purchase Hansson et al., 2013; Hopkins, 2012).
post clicking these ads? Users’ demographic characteristics play a major role in
RQ5: How is the user’s purchase experience after ad- acceptance of social media as a marketing tool. Consumers’
clicks at social media age, and income has significant effect on online shopping
intention (Gong et al., 2013). However, there is no
Second null hypothesis has been formed here.
significant difference between advertisements seen and
H02: Purchase made after user clicked advertisements at
clicked among male and female (Barreto, 2013). A study by
social media do not generate significant positive
Duffett (2015) confirmed that there is no significant
purchasing experience.
difference in terms of age and gender on intention to
RQ6: How can social media improve in terms of its
purchase and purchase perception of Facebook advertising.
advertisement strategy?
RQ7: Do demographic factors viz. gender, age, income, 2.2. Advertisement Features at Social Media that
and metro city dwelling have effect on decision to
Leads to Ad-click.
click ads and intention to purchase post clicking
these ads at social media? Various advertisement features lead to different ad-clicks
frequency. No previous study has exclusively focused on
features of advertisements leading to ad-clicks. Very few
2. Literature Review studies mentioned features of advertisements in their study
and no empirical study has been conducted. Product
2.1. Social Media and Marketing
images/pictures are found to be most influential feature
Social media is a technology under Web2.0 ambit, which leading to ad-clicks (Hansson et al., 2013). Company's
allows like-mind people to come together in virtual world to profile had some influence on user's behavior. Other
create and exchange user-generated content, enable attributes found to be influential are product review and
communications, and opinion sharing among themselves. recommendation by friends. Users rely more on the advice
Whilst most users at social media have account primarily and suggestion of consumers who are already using the
to remain in touch with family and friends than making new product than any professional critics (Barreto, 2013; Hansson
contacts, they are also well aware that social media is now et al., 2013; Kodjamanis & Angelopoulos, 2013; Kodjamanis
widely used as a marketing channel for brands. Social & Angelopoulos, 2013; Hopkins, 2012).
media has enabled companies to spread their messages
 Apeksha Hooda, Ankur / East Asian Journal of Business Management 8-3 (2018) 5-12 7

2.3. Precariousness of Social Media Advertisement 3. Research Methodology

There are many precariousness of social media 3.1. Research Design
advertisements which refrain users from clicking ads, most
notable are privacy and security concerns especially Research design followed is exploratory research, where
personal information thefts (Vejacka, 2012). Many users’ give various factors leading to ad-clicks and generating purchase
wary glance at these ads and think that these are merely a at social media platform were explored. Facebook was
hogwash to steal their personal information (Vejacka, 2012). chosen to study the acceptance of social media as marketing
Mostly users use social media to remain in touch with the tool among Indian netizens since it is the most adopted
friends and to socialize (Hansson et al., 2013). Literature social networking site in India (Statista, 2018) and it has
support evidence that users refrain from purchasing on average 1.4 billion daily active users as in December, 2017
social media when product range is different from what was (Facebook, 2018). Facebook's user base is still growing,
shown in advertisement. Further fear of virus attack, and thereby increasing its marketing and advertising potential
fear of personal information theft were deterrent (Hansson et (Vejacka, 2012).
al., 2013; Vejacka, 2012; Rajamma et al., 2009). Still, this
form of social media marketing is gaining momentum. In fact, 3.2 Design of Research Instrument and Data collection
companies which are using social media are more connected
to market trends as they are directly getting consumer input This section is divided into two phases:
along with real time feedback (Hansson et al., 2013). 1. Questionnaire Development
2. Data Collection and Data Analysis
2.4. Cynicism about Social Media Advertisement
3.2.1. Phase 1: Questionnaire Development
Despite marketing potential of social media sites, social
media future can be endangered by a few cynicism Owing to the non-availability of existing scales in literature
(Vejacka, 2012). When ads are posted in users’ profile, in the context of reasons to click advertisements and reasons
users should be allowed to search for the companies for not making purchase post clicking advertisements at
themselves, rather than bombarding users’ profile with social media, new scales were developed based on
company messages (Hansson et al., 2013). Vejacka (2012) variables identified from literature review and interviews of
argued that many firms often try to lure users to their fifty Facebook users residing in Delhi, National Capital
groups by using ostensible name or contents and later such Territory of India in the age group above twenty years.
groups are used to reach users by the commercial Reliability of scale items used in Questionnaire was
messages. Users targeted in this manner often rebuff such checked with Cronbach’s alpha test(<Table 1>). To ensure
overtures and it has scandalous effect on company image. unidimensionality of scale w.r.t. reasons to click on ads and
Therefore, brands are advised to seek user’s preference if reasons for not making purchase post clicking these ads at
advertisements can be posted in his profile, ask for user’s Facebook, Exploratory Factor Analysis (EFA) was ran
preference of advertisement that can be posted in his profile (<Table 1>).
or post ads based on user’s browsing history, and display
images of only those products in advertisements that are
really available (Hansson et al., 2013; Vejacka, 2012).

<Table 1> Cronbach alpha test of reliability and EFA Results of Scale Unidimensionality.
Factor Cronbach Alpha KMO Measure of Bartlett's Test of % of Variance
Reason to Click on Ads Indicators
Loading (Reliability test) Sample Adequacy Sphericity(Significance) explained
Product image .679
Best deals available .695
Diverse product range .933
Product review .944
Aesthetic look of advertisement .947 0.961 0.946 .000 82.887
Best product choice available .978
Latest trend .977
Viewing how product can be marketed at Facebook .984
Friends recommendation .988
Reasons for not making Purchase Indicators
Paid shipping charges .974
Product range different from what shown in
.838
advertisement image
False claim on discounts and offers .911 0.752 0.886 .000 90.842
Product out of stock .987
Server not available error .994
Fear of virus attack .976
Fear of stealing personal information .981
8 Apeksha Hooda, Ankur / East Asian Journal of Business Management 8-3 (2018) 5-12

Phase 2: Data Collection and Analysis reasons for not making purchase after advertisement click,
multiple response analysis was conducted. This is a
3.2.1.1. Sampling Method bivariate analysis as two variables were analyzed here,
namely, "Ad-clicks" and "Purchase done post clicking ads".
Snowball sampling method was used to identify the There was one open-ended question, which aimed to
sample members where each respondent was asked to give identify consumer’s purchase experience after ad-clicks. This
reference of 10 people from whom questionnaire could be question was analyzed manually and result was drawn in
filled out. Facebook users based in India in the age group the form of tree summary (<Figure 4>).
above 20 years were selected to fill in the questionnaire.
Data was cross sectional in nature.

3.2.1.2. Sample Size Determination

4. Results and Discussion
Bartlett et al. (2001) suggested that if population is finite,
4.1. Respondent Details
variables in study are categorical in nature, and factor
analysis technique has been used, then sample size should
<Figure 1> below provides the detail of respondents’ w.r.t
not fall below 100 observations and the ratio of observations
ad-clicks at Facebook.
to the independent variables should not fall below five else
there will be a risk of overfitting. Considering these
constraints along with non-respondents and missing data
consideration, it was decided to keep sample size at 500 as
it gave ratio of 55.5 with nine independent variables
undertaken in current study, which is greater than the
threshold value five. However, 206 filled questionnaires were
received out of which 185 were valid. It was decided to
conduct study with these many questionnaires as past
studies on social media usage were conducted with even
smaller sample size (Israel, 2013). KMO Measure of Sample
Adequacy also supported the sample size (<Table 1>) (Hair
et al., 2010).

3.3. Data Analysis Tools used

This study used statistical software named SPSS (version Source: Data Analysis using SPSS
23) to capture and analyze the data. Cronbach’s alpha test
was used to establish reliability of questionnaire scale items <Figure 1> Respondents Detail
(Field, 2013; George & Mallery, 2003). Further to ensure
undimensionality of scale items, exploratory factor analysis 4.2. Results based on Objectives
was used (Field, 2013). Simple descriptive statistical
measures (mean, standard deviation, frequencies) were RQ1: Are advertisements posted at social media actually
employed to provide the basic description of results. One clicked by users and if yes, do they really lead to purchase
sample T-test was utilized to test the hypotheses, which is The results of T-test indicated statistical difference
used when one independent variable need to be compared between ad-clicks and no ad-clicks where t= 18, p< .05.
to an quantitative score (Field, 2013). ANOVA test was used This study revealed that only 21.6% of respondents did not
to study the effect of Facebook user’s demography on like to click on ads posted at Facebook. 14.6% of
ad-clicks and purchase done. ANOVA used Wald chi square respondents indicated that though they did not click on ads
test and measured as Generalized Linear Model (GLM) to yet but may click in future. 63.8% respondents liked clicking
establish if there is significant difference in ad-clicks w.r.t. on ads.
demographic factors and purchase done post clicking these However, Facebook users did click advertisements posted
ads w.r.t. demographic factors. Percentage method was used at Facebook but they did not like to click advertisements
to establish differences, and to interpret the findings more often (<Table 2>). When Z score of skewness and Z
conclusively (Field, 2013). Multinomial regression was used score of kurtosis was calculated, then Zskewnes Score = .524/
to identify reasons to click on advertisements. To identify .223 = 2.35; ZKurtosis Score = .294/ .442 = 0.66.
reasons for not clicking advertisements and to improve Positive z value of skewness calculated above indicates
advertisement strategy, percentage method was employed too many low scores in the distribution (Field, 2013) which
owing to univariate and nominal variable analysis. To identify further confirmed that users’ frequency of clicking
 Apeksha Hooda, Ankur / East Asian Journal of Business Management 8-3 (2018) 5-12 9

advertisements was skewed more on left side of distribution fit as χ2 (9,118) = 24.363 and p< .05 (Field, 2013).
which reflect ‘normal frequency’ and ‘less than normal
frequency’ of clicking ads posted at Facebook(<Table 2>). Z <Table 3> Multinomial Regression result for reasons to click on
value of kurtosis lying between -1.96 to 1.96 confirmed that ads
data was normally distributed (Field, 2013) so distribution of Model Fitting Likelihood Ratio
response did not impose a problem. Criteria Tests
Factors -2 Log
Chi-
<Table 2> Ad-clicks frequency Likelihood of df Sig.
Square
Reduced Model
Std. Error Std. Error
Ad-click Valid Product image 56.096 1.343 1 .246
Frequency Skewness of Kurtosis of
Frequency Percent
Skewness Kurtosis Best deals available 59.183 4.431 1 .035*
Never 7 5.9 Diverse product range 55.173 .420 1 .517
Sometimes 46 39.0 Product review 59.697 4.944 1 .026*
Normally 47 39.8 Aesthetic look of advertisement 64.019 9.266 1 .002*
.524 .223 .294 .442
Often 13 11.0 Best product choice available 55.901 1.149 1 .284
Always 5 4.2 Latest trend 54.990 .238 1 .626
Total 118 100.0 Viewing how product can be
56.206 1.454 1 .228
marketed at FB

50.8% of users clicking advertisements went ahead with Friend’s recommendation 67.223 12.471 1 .000*
making purchase, thus ascertaining that social media users Note: df : Degree of freedom, Sig. : Significant value
do like to click on advertisements and make purchase post * Likelihood ratio test showed significant value at p =.05
clicking these advertisements.
When influence of Facebook advertisements on consumer RQ4: What factors refrain user from making purchase
buying behavior is analyzed using one sample T-test then post clicking these advertisements?
these advertisements were found to have positive influence 49.2% of respondents clicked on ads but never made any
on buying behavior of consumers (t= 5.877 and p< .05), purchase post clicking these ads. When their reasons for no
therefore null hypothesis H01 is rejected and it is concluded purchase were analyzed using multiple response analysis, it
that advertisements posted at social media has significant was identified that 49.1% of non-buyers felt that product
positive effect on buying behavior of user. range was different from what shown in advertisement.
38.6% of non-buyers experienced false claim on discounts
RQ2: What factors lead to no click on advertisements and offers. Safety was another concern that Facebook users
posted at social media? quoted as a reason for not making purchase where fear of
Majority of Facebook users in India who did not like to virus attack and fear of stealing personal information,
click on ads posted at Facebook, uses the same to remain collectively constituted 36.8% of valid response.
in touch with friends rather than using the same as a However, reasons viz. paid shipping charges, product out
shopping tool. Using percentage method, main factor leading of stock, server not available, and other reasons were not
to no ad-clicks at Facebook was identified as usage of very much evident in restricting user from making purchase
Facebook mainly to remain in touch with friends (50% online.
contribution to reasons for no ad clicks). Additionally, users
considered clicking advertisements posted at FB as wastage RQ5: How is the user purchasing experience post clicking
of time (27.5% contribution to reasons for no ad clicks). ads at social media?
Users preferred to use Facebook for socialization than for 50.8% of respondents clicking ads made purchase and
shopping (25% contribution to reasons for no ad clicks). when their response regarding purchase experience was
analyzed then it was found out that only 11.6% of users
RQ3: What factors contribute to ad-click at social media? had bitter experience post purchasing. Main reason identified
Based on the results of multinomial regression, four main for bad experience was that product delivered was not same
features were identified that led to ad-clicks at Facebook viz. as displayed in advertisement posted at Facebook. However,
best deals available (aggressive pricing), product review, many respondents quoted that experience is not related to
aesthetic look of advertisements and friend recommendation purchase through Facebook but depends on specific website.
with highest effect of friend recommendation followed by Facebook just hosts the link of seller's page. Few
aesthetic look of advertisements, product review, and lastly respondents made the point that it was bit tougher to get
best deals available(<Table 3>). This model was found to be misfit products exchanged than e-retailers’ sites like Amazon.
10 Apeksha Hooda, Ankur / East Asian Journal of Business Management 8-3 (2018) 5-12

Source: Based on response analysis of an open ended question

<Figure 2> Respondent Experience making purchase post clicking Ads at Facebook.

Purchase done post-clicking ads posted at social media effect in terms of Wald chi square test. The Wald chi
generated significant positive purchasing experience. 46.7% square test revealed that there is no significant impact of
of respondents had satisfactory purchase experience and demographic factors except of gender, on decision to click
41.7% has neutral experience post clicking the ads. One on ads and decision to make purchase post clicking these
sample T-test result, t=12.093, p<.05, rejected Null ads at p= .05.
Hypothesis H02. Thus, it is concluded that purchase done
post-clicking ads at social media does generate significant <Table 4> Effect of demographics on decision to click
positive purchasing experience. advertisements at Facebook
<Figure 2> below presents the summarized analysis of Demographic Factor Wald Chi-Square df Sig.
open-ended question regarding the factors leading to Age 9.232 5 .100
satisfactory purchase experience post clicking the ads posted
Gender 4.374 1 .036*
at Facebook.
Individual Monthly Income 5.797 4 .215
RQ6: How can social media improve in terms of its Metro City .043 1 .835
advertisement strategy? Occupation 7.563 7 .373
Majority of respondents believed that advertisements Note: *Wald chi square test showed significant difference at p=
posted at Facebook showed images of products that were .05.
different from what they really were where 49.2% of
respondents who clicked on the ads gave the <Table 5> Effect of demographics on decision to purchase post-
recommendation that advertisements should show the clicking advertisements at Facebook
images of products that are available. 24.6% of respondents Demographic Factor Wald Chi-Square df Sig.
suggested that Facebook should ask for user preference, if Age 3.649 5 .601
ads can be posted in his profile, and 23.7% of respondents
Gender 4.026 1 .045*
suggested that Facebook should ask for user preference of
ads that can be posted in its profile. Individual Monthly Income 2.400 4 .663
However, respondents had given other suggestions also, Metro City .214 1 .644
apart from what were mentioned in survey instruments. They Occupation 6.967 7 .432
desired that user permission should be sought to display Note: *Wald chi square test showed significant difference at p=
ads based on his browsing history, illogical advertisements .05.
should be banned, and deliver what company promises or
shows. Gender showed strong impact on choice of clicking
advertisements and choice of making purchase post clicking
RQ7: Do demographic factors viz. gender, age, income, these advertisements whereby female clicked advertisements
and metro city dwelling have effect on intention to click on (%age=43.8%) more than male (%age=34.6%) and females
advertisements and intention to purchase post clicking these (%age=68.3%) made more purchase than males (31.7%).
advertisements at social media?
GLM ANOVA as discussed in prior text was used, since 4.2. Hypotheses Result
data contains different number of observations for some
independent variables which can be observed by larger
<Table 6> below summarizes the result of hypotheses
standard error (Field, 2013; George & Mallery, 2003).
testing.
<Table 4> and <Table 5> below shows the demographic
 Apeksha Hooda, Ankur / East Asian Journal of Business Management 8-3 (2018) 5-12 11

<Table 6> Results of Hypotheses testing using SPSS.

S No Null Hypotheses Method used Findings
Ads posted at social media has no significant positive effect Null hypothesis Rejected
H01 One sample T Test
on buying behavior of online customers. (p < 0.05)
Purchase done post-clicking ads posted at social media does Null hypothesis Rejected
H02 One sample T Test
not generate significant positive purchasing experience. (p < 0.05)

5. Conclusion sample size in survey research appropriate sample

size in survey research. Information Technology,
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Gehrt, K. C., Rajan, M. N., Shainesh, G., Czerwinski, D.,
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Step by Step: Answers to Selected Exercises. A
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