Analyzing the Influence of Social Networks on Consumer Behavior

Abstract

The rise of social networking sites over the past few years has fundamentally altered the patterns of consumer behavior and practice. This paper examines the impacts of social networks on the individual decision making process on purchasing, brand attitude formation, and consumption behaviors. The investigation of user behavior on Facebook, Instagram, and Twitter was conducted using a mixed strategy incorporating sentiment analyses, surveys, and behavioral tracking of users’ activities on the various platforms. The results uncover the impacts of peers on consumer decisions, the impacts of social proof in marketing, and the impacts of digital word of mouth. The main findings also indicate that the participation in user generated content (whether as a participant or an observer) and influencer advertisement leads to higher engagement of consumers and thus an increase in conversion rates. The study also demonstrating variation of behavior across different demographics and types of networks. The merit of this research for practitioners and businesses is to rethink their approach and construction of social marketing justice. The findings advance the construction of customization for the identified ad deeper engagement strategies based on social media behavioral data.