Academic Master

Business and Finance

Consumers’ response towards social media advertising in activating behavioural effects: The moderating role of corporate brand image

1.1 Introduction:

The rapid progressive extension in the subjects related to the internet in last few years have envisioned and enabled new forms of work and hence pave the way to develop new systems to facilitate business. Significantly, social interaction and community building through social media is one such vibrant example (Lu, Fan, and Zhou, 2016). The easy access and usability of the internet have provided an opening to the people to use social media to facilitate the communication from making use of email to use a more vibrant way of interaction through Facebook and Twitter without the need of physical presence (Pattanachai, 2015). Interestingly, social media has earned popularity among masses in a very short span of time (Knoll, 2016). With the emergence and growth of social media and online communities’ people know can effortlessly acquire the access to any form of information with the facility to share (Dwivedi, Kapoor and Chen, 2015).

The community system formed through social networking sites (SNSs) have constructed a lively web of frequent exchange of communication for social connections and as well as information share (Ngai, Tao, and Moon, 2015). Due to such developments now, consumers have access to numerous sources of information and knowledge that have been provided by other consumer’s experiences, feedback and recommendations. It indicates and signifies the critical role of consumer involvement through social media engagements and its influence over making a purchasing decision a key consideration in marketing (Al-Dmour et al. 2016).

1.2 Background of research:

Social media provides numerous avenues to business firms, which includes enhancement in the corporate identity and the brand image (de Vries, 2015). Simplifying the most convenient mode of communication that is the word-of-mouth (Chen et al. 2011b) as progressive growth in the sales (Agnihotri et al. 2012). Spreading and targeting information from a business perspective (Dwivedi, Kapoor and Chen, 2015) and instigating to construct supporting platforms through social media for consumers (Keller, 2016.; Ballantine & Stephenson 2011). Furthermore, the connectivity between individuals through social media delivers mutual values, formulating a positive development of trust (Lemon, and Verhoef, 2016). Thus, making the previous methods of consumer engagement through conventional advertising have become less effective with the rise of social media networking (Schivinski and Dabrowski, 2016). A revolution has taken place in the methods of advertising, and social media has emerged as a new advertising platform for brands which permits its users to associate with each other and engage with the brands. The underlying driving force in the market stays with the consumer’s response and the behaviour towards the brands (So, King, Sparks and Wang, 2016.). Such responses activate a behaviour which then generates demand for the goods and services that can enable organisations to fulfil the gaps in the market and satisfy the consumer. In the cluttered world of advertising marketers, today are faced with a grim set of circumstances and are eager to learn the factors that influence and activates the consumer behaviour. The current study examines consumer’s response, behaviour, attitude towards social media advertising triggering a behavioural effect that facilitates the corporations to build a stronger brand image that can eventually generate buying or purchase intentions towards their brands.

1.3 Literature Gap:

A large number of studies have attempted to excavate the findings regarding social media and its impacts regarding consumer’s buying behaviour. However, there are micro-level approaches which have more focused on either a singular social medium or a specific application or based on consumer’s responses. Although these approaches are effective and answer the proper paradigm of confined resources, it cannot be attributed to drawing an overall picture of the social media on the whole. However, the stages involving the consumer’s perception regarding social media advertising is relatively lesser (Schivinski, and Dabrowski, 2016).

Moreover, another study of Stephen (2016), the consumer’s behaviour is discussed social media roles, but the study did not focus on the relevant variables to evaluate the research paradigms. The role of social media has understood, but the impact of social media advertising should be evaluated too.

1.4 Research aim:

This study is aimed to discuss the significances of the social media advertising on consumer’s behaviour and response. It is also important to evaluate the circumstances which have a direct and indirect impact on consumer’s behaviour. Nevertheless, it is essential to ascertain the positive and negative associations of social media advertisements on the society as a whole. Moreover, the convincing factors which lead to enrich and develop consumer purchasing behaviour would provide insight into the market development of the corporations and brands.

1.5 Research objectives:

The research objective of the study has elucidated and embarked the area of consumer’s response while activating a behaviour through social media advertisements. Moreover, it is critically examined that the consumer behaviour influenced by social media has the indirect influence on the decision making of the consumer.

  • To investigate the consumer’s cognitive responses towards social media advertising.
  • To analyse critically, the relation of the consumer’s behaviour with social media advertisement.
  • To develop the relationship of decision making with consumer’s response.
  • To estimate the intensity of social media impact on the behaviour of the consumer.
  • To investigate the strategy of for influencing brand image towards social media advertising.

1.6 Research questions:

The research questions of the study are as follows:

Q:1 What is the parameter to quantify customer’s response?

Q:2 What are the direct and indirect factors that are involved in the setting of favourable environments for positive behavioural effect?

Q:3 Why social media advertisement has become a serious concern for marketers?

Q:4 What is the strategy to influence the consumer’s buying perceptions towards corporate image?

Q:5 What can be the brand implications in social media advertising?

1.7 Delimitation of the research:

As indicated by Dane (2011), this is a fundamental concern for the researcher to look into that can confine the research. Thus care is to be taken to minimise the effect of the limitations and hence uncover reality. Though the limitations can be lessened to an insignificant sum whose results or impact ends up impracticable however it can’t be limited to zero. While carrying out this study, the researcher was presented with various impediments from the corporation in the gathering of information, in regards to the customer’s loyalty programs. The principal purpose for that was customer’s loyalty data information programs are the chief driving elements for corporation’s competitiveness. Despite the fact that, there was a probability of information control of certainties acquired through real customers. Besides, the analyst needed to handle the restriction of time, back and absence of experience which manages the sample size and adroitness of information

1.8 Purpose of study:

This study is reserved to unearth the intentions and factors that can instigate and influence the consumer’s behaviour through social media advertising. It is anticipated to discover the applicable related factors and reasons which are successful and have criticalness in changing over a consumer’s reaction towards the purchase choice. Today, online social networking is an extensive platform that performs an effective role successfully in connecting the consumers with the corporations and within the community circles of the consumers among themselves (Oni and Oni, 2018).

In this way, the researcher has absorbed it to be fundamental to inspect the positive and negative part of online social networking media advertising in enacting a customer’s reaction driving it particular conduct. Hence This will encourage and help in planning a narrative identified with exhibiting of pre-consumer and post-consumer behavioural example.

Chapter 2: Literature Review

2.1 Introduction:

The emergence of social media has intensely altered and redesigned the communication landscape (Edwards, 2011). Predominantly it has transformed the consumer’s approach to thinking (Mir and Zaheer, 2012). Social media communication exchange channels have brought about a deep impact on human attitudes and behaviour. In recent times the democratic spring movements in the middle-east have validated the claim of the ground-breaking impact of social media communication. It was mainly due to connectivity through social media unified the common man in the region against the decades-old dictatorial regime and hence facilitated them in bring down such dictatorial regimes (Eltantawy and Wiest, 2011; Marzouki et al., 2012). Hence due to such impactful influence over people, social media has become a channel of absolute interest for marketing communication and also among the most preferred medium of corporate communication today.

Through social media, businesses are now able to interact directly with their consumers and with time at an economical cost (Kaplan and Haenlein, 2010). Web-based social networking is composed of a broad-based umbrella with diversified online interconnectivity systems like for instance community networking there are certain platforms which enable users to connect efficiently through Facebook, Twitter, LinkedIn etc. For knowledge encyclopedia access there is Wikipedia, experiencing with the mode of picture, sound and videos there is a certain platform like YouTube, Soundcloud, Flickr, Pinterest etc. For education there are virtual online universities like Second life, for bookmarking links or information there is Digg and Web-based social networking provides the individuals all around the globe to interact with ease and exchange information with each other at different times and events (Edwards, 2011; Heinrichs et al., 2011).

Unlike the traditional media where the user has limited control, on web-based social networking content is controlled and generated by users themselves (Dickey and Lewis, 2011). With the rise in the phenomenon of use of social media across the countries around the world took companies to look it with keen interest to convert such a platform for their advantage to augment interest in their offered services or products in community network (Mathur et al., 2012). Presently, marketer put to use several different social media platforms to highlight and deepen their corporate and brand integration among the life of consumers. Hence, the markets use the social media platform to promote their products or services by placing adverts on display within the social media sites to influence the uses and activate their behaviour to buy their offerings (Neti, 2011). Regardless of the rise of social media around the world and its impact effects on people’s attitude and behaviour, the research in this sphere of web-based social communicative advertising is still at investigative sate. Mostly the research studies which have carried out evaluating consumer respond toward social media advertising are conducted in west particularly in the US. The present study proposes to learn the consumer insight into social media advertising and how it influences the behaviour to make a purchasing decision. More importantly, it will focus on the consumer perception about social media advertising and its impact on consumers behaviour.

2.2 Theoretical Framework:

2.2.1 Consumer’s perception:

In broad-spectrum, the conviction regarding the persuasiveness of advertising in a consumer’s mind is a common phenomenon (Bauer and Greyser, 1968). Researchers have submitted and shared conflicting ideas concerning the connection between consumer’s perceptions and their behaviour towards advertising. According to one school of thought, it is considered that in the consumer’s viewpoint and their attitude are substitutable as they both form theoretically and operationally (Mehta, 2000; Schlosser & Shavitt, 1999). Consequently, the other school of thought illustrates that consumer belief or viewpoint and their attitude are distinctive psychological components (Brackett and Carr, 2001; Ducoffe, 1996; Pollay and Mittal, 1993). By and large, the perception encourages the consumer’s behaviour towards advertising (Bauer and Greyser, 1968). The empirical indication within the perspective of internet and internet based social network advertising has supported this impression. Young generation consumer is expected to evade the internet-based social media advertising if they presume the communication message is negative or they identify the communication message unimportant or they have a certain view about the advertising channel (Kelly, Kerr, and Drennan, 2010). Like the conventional form of advertising, the social media network advertising has brought about the same divergent observations (Chu, 2011; Kelly et al., 2010).

Consumers’ perception concerning advertising is a multi-dimensional build. Bauer and Greyser (1968) distinguished two dimensions core consumers’ perceptions: one is economical and second is communal. Polly and Mittal (1993) categorised consumers’ perception as regards to advertising hooked on two dimensions: Individual uses and communal impacts. An individual method comprises of three dimensions; Product knowledge, shared role and reflection, hedonic and joy, shared effects comprise of fruitful for the economy, greediness, value corruption and falsity/no intellect. Ducoffe (1995) recognised four factors; usefulness, deceptiveness, annoyance, and amusement as an initial spot meant for how consumers consider the worth of advertising. Concerning in the case of online advertising Wang and Sun (2010) distinguished five conviction scope: information, amusement, reliability, economy and value.”

Mostly familiar principle extent recognised in the conventional and online advertising settings are “information”, “entertainment”, “good for the economy” and “value corruption”. Present study centres rest on these four components of consumer perception about advertising in a social media perspective. Consumers’ perception of advertising as “informative” is central belief dimension influencing consumer behaviour toward online advertising (Ducoffe, 1996; Wang and Sun; 2010; Wolin et al., 2002). Present study presumes with the aim of consumers take in social media advertising as a vital and positive resource for product knowledge. Consumers believe advertising as a sufficient supply of information for the precise reason that product information exposed in advertisements assist them in creating the informed and right purchase decisions.

2.2.2 Consumer’s Behavioural Response

Consideration consumers’ behavioural reaction is crucial since behavioural response/buying intentions help in anticipating the consumers’ buying behaviour (Flew, 2007). Consumers’ affirmative demeanours toward advertising are anticipated to facilitate consumer towards recalling the brands exposed in the ads and persuade their behavioural motives (Flew, 2007). The green theory of consumption has predicted the behaviour of consumers. In this regard, the green theory of buying explains the three “casual recipes” for consumption behaviour. These combinations are social, emotional and conditional values combined with the functional value. When the green theory has applied, it effects on the functional value of consumer’s which affect the consumer’s behaviour (Gonçalves, Lourenço, and Silva, 2016).

Existing study accept with the aim of consumers’ positive approach concerning social media advertising has an evident effect on their behavioural retort. Behavioural reaction comprises of two effect variables; many time consumers click on the banner ads and watch/read them and purchase the products/brands shown in those ads. Ad clicking is a valuable instrument to assess the efficiency of online advertising (Dreze and Zufryden, 1997). The identical technique can be connected to evaluate the usefulness of social media advertising since on the whole of the social media advertising is similar to online advertising (esp. poster ads/display ads on SNSs, YouTube etc.). Nonetheless, the background in which these ads display is discrete.

2.2.3 The social media Advertising:

To illustrate the social media advertising method, we depend by the side of an arrangement of theories in the field of media research (social presence, media richness) and social methods (self-presentation, self-disclosure), the two fundamental components of Social Media. Concerning the media-related element of Social Media, social presence theory (Short, Williams, & Christie, 1976) states to media contrast in the extent of ‘‘social presence’’. Defined as the audio, visual, and bodily contact that can be there achieved–—they consent to appear connecting two communication accomplices. Social presence is influenced by the relationship either interpersonally or mediated. Additionally instantaneousness like offbeat vs synchronous of the medium, as well as can be anticipated to be lessened for interceded (e.g., telephone talk) than interpersonal (e.g., face-to-face conversation) and for offbeat (e.g., e-mail) than synchronous (e.g., live chat) communications.

The superior the social presence, the bigger the social influence that the communication accomplices possess on each other’s behaviour. Intimately connected to the notion of social presence is the concept of media richness. Media richness theory (Daft & Lengel, 1986) relies on the hypothesis with the aim of the purpose of any communication is the declaration of vagueness and the diminution of ambiguity. It states that media vary in the level of richness they possess that is, the sum of information they permit just before transmitted during a specified point in time and that consequently, a quantity of media is extra efficient than others in settling uncertainty and vagueness. Connected to the background of Social Media, we believe that a first distinction formulated relied on the richness of the medium and the extent of social presence it permits (Kaplan, and Haenlein, 2010).

2.2.4 Corporate brand image

Brand image is the realisation, opinion and perception that individuals possess concerning an organisation, and throughout which they recognise, explain, recall, and connect to that organisation. Brand image characterises the arrangement of affiliations a consumer has amid a brand (Huang and Ku, 2016). As markets expand additional competitive, organisations have to mould their metaphors to be competitively appealing. A positive brand image has a positive influence taking place on brand equity and consumer behaviour (Huang and Ku, 2016). Earlier studies have long-established the constructive association between the brand image and consumers’ buying plan (Chang & Liu 2009; Khan et al. 2015; Wang and Tsai 2014). Similar to for-profit firms, non-profit brands can originate recognition and segregation characteristics in a competitive background, build up confidence in their conduct and accordingly assured their size of contributions (Voeth & Herbst 2008). Past studies have revealed that the non-profit’s brand image has a substantial blow on donors’ plan to contribute (Michel & Rieunier 2012).

2.4 Conceptual Framework:

The conceptual model has drawn upon the past research which evaluates the relationships of consumer’s response and behaviour, impacting on the social media advertisements by mediating corporate brand image. This model has helped in drawing the hypotheses of the present study.

2.5 Hypothesis:

The hypotheses have designed by secondary literature which has found relative to the consumer’s response to cognitive behaviour. The following are the proposed hypotheses.

H1. The positive attribute of the consumer response influences the worth of social media advertising.

H2. External environment effects on the consumer’s behaviour regarding social media advertising.

H3. The social media advertisement is becoming new hybrid in marketing for brand image.

H4. The key strategies encode the contribution of consumer’s behaviour and consumer’s response towards the brand image.

H5. The brand image positively mediates both the response and perception to social media advertising.

Chapter: 3 Research Methodology

The research methodology comprises of the qualitative design with a pragmatic approach. Further, it will elaborate the practice of the quantification of the impact of advertisement. However, it will also draw a successful response regarding the consumer’s buying behavior. Further, the evaluation of research questions would also be evaluated.

3.1 Sample Selection

The sample will be selected after evaluation of the population size of the certain region. The sample size would be calculated by the formula which has described as under:

3.2 Population frame

A non-random sampling method will be used to evaluate the data, and hence a representative portion of the population has been selected. As this sampling concerned with the experimentation, judgment, and preferences of the researcher, then the overall population has not reflected. The selection of the whole population becomes difficult to assess and would require a large period and resources. It would also require the funding and volunteers to design the research.

3.3 Unit of analysis

The unit of analysis will be the impact of negative and positive advertisements on the consumer’s buying behavior which will ultimately describe the societal norms and culture.

3.4 Type of study

The study will be conducted on different population quadrants to analyze the variation in different selected areas. Further, the research will be of applied nature, and the results would be used to assess the impact of the social media advertisements.

3.5 Time horizon

The study period will be of three months that is May to July 2018. Throughout the specific time, the researcher will gather the data and encrypt it into the digital format.

3.6 Researcher’s strength

The researcher has the effective communication and verbal skills. Also, the researcher can comprehend the English language effectively along with the native language. Further, the observatory and analytical skills of the researcher are proficient regarding the evaluation of the different responses.

3.7 Instrument development/selection

The survey questionnaire will be designed and distributed in the form of hard copy along with a consent form. The questionnaire will contain the closely relevant questions. Further, the questions will have assumed to be close-ended. The questionnaire entails a small section for recommendation and suggestion that will be analyzed and further incorporated in the research. The development of the questionnaire will be appropriately designed to avoid the further ambiguities. Also, the margin of re-designing of the questions will have opened during the research.

3.8 Data collection procedures

The quantitative nature of the data will be used to explain the design of the semi-structured interviews. It will use the primary research and secondary research methodology in which the primary research includes the surveys, questionnaire while the secondary research will use the reviewed scientific journal. These interviews will be helpful in the evaluation of the knowledge regarding the design and structuring of the concepts of advertisements and consumer’s buying behavior. Furthermore, it has assessed that the advantage of the semi-structured interviews is that they can be modified at any point of the research for elaboration and specificity of the research. However, the generalized structures of the questionnaires are not evaluated with peculiar specificity. Further, the variety of the intellect and entrepreneurs, hence, are unable to explain the core of the research theme.

3.9 Data analysis techniques

The data will be analyzed using the statistical tool SPSS v.20. The reliability and validity of the data would also be assessed and evaluated. Further, the responses will be evaluated regardtoing the intervention of supervisor observation and analysis. Also, the statistical analysis will explain the quantification of the influence of the consumer’s behavior.


Agnihotri, R., Kothandaraman, P., Kashyap, R. and Singh, R., 2012. Bringing “social” into sales: The impact of salespeople’s social media use on service behaviors and value creation. Journal of Personal Selling & Sales Management32(3), pp.333-348.

Al-Dmour, H., Al-Madani, S., Alansari, I., Tarhini, A. and Al-Dmour, R.H., 2016. Factors affecting the effectiveness of cause-related marketing campaign: moderating effect of sponsor-cause congruence. International Journal of Marketing Studies8(5), p.114.

Chang, H.H. and Liu, Y.M., 2009. The impact of brand equity on brand preference and purchase intentions in the service industries. The Service Industries Journal29(12), pp.1687-1706.

Chen, Y., Wang, Q. and Xie, J., 2011. Online social interactions: A natural experiment on word of mouth versus observational learning. Journal of marketing research48(2), pp.238-254.

Chu, S.C., 2011. Viral advertising in social media: Participation in Facebook groups and responses among college-aged users. Journal of interactive advertising12(1), pp.30-43.

Daft, R. L., & Lengel, R. H. 1986. Organizational information requirements, media richness, and structural design. Management Science, 32(5), 554—571.

de Vries, L., 2015. Impact of social media on consumers and firms. University of Groningen.

Dreze, X. and Zufryden, F., 1997. Testing web site design and promotional content. Journal of Advertising Research37(2), pp.77-91.

Dwivedi, Y.K., Kapoor, K.K. and Chen, H., 2015. Social media marketing and advertising. The Marketing Review15(3), pp.289-309.

Flew, T., 2007. New media: An introduction. Oxford: Oxford University Press.

Fournier, S., 1998. Consumers and their brands: Developing relationship theory in consumer research. Journal of consumer research24(4), pp.343-373.

Gonçalves, H.M., Lourenço, T.F. and Silva, G.M., 2016. Green buying behavior and the theory of consumption values: A fuzzy-set approach. Journal of Business Research69(4), pp.1484-1491.

Huang, S.L. and Ku, H.H., 2016. Brand image management for non-profit organizations: exploring the relationships between websites, brand images and donations. Journal of Electronic Commerce Research17(1), p.80.

Kaplan, A.M. and Haenlein, M., 2010. Users of the world, unite! The challenges and opportunities of Social Media. Business horizons53(1), pp.59-68.

Keller, K.L., 2016. Reflections on customer-based brand equity: perspectives, progress, and priorities. AMS review6(1-2), pp.1-16.

Khan, N., Rahmani, S.H.R., Hoe, H.Y. and Chen, T.B., 2014. Causal relationships among dimensions of consumer-based brand equity and purchase intention: Fashion industry. International Journal of Business and Management10(1), p.172.

Knoll, J., 2016. Advertising in social media: a review of empirical evidence. International Journal of Advertising35(2), pp.266-300.

Lemon, K.N. and Verhoef, P.C., 2016. Understanding customer experience throughout the customer journey. Journal of Marketing80(6), pp.69-96.

Lu, B., Fan, W. and Zhou, M., 2016. Social presence, trust, and social commerce purchase intention: An empirical research. Computers in Human Behavior56, pp.225-237.

Michel, G. and Rieunier, S., “Nonprofit Brand Image and Typicality Influences on Charitable Giving,” Journal of Business Research, Vol. 65, No. 5:701-707, 2012.

Ngai, E.W., Tao, S.S. and Moon, K.K., 2015. Social media research: Theories, constructs, and conceptual frameworks. International Journal of Information Management35(1), pp.33-44.

Okazaki, S. and Taylor, C.R., 2013. Social media and international advertising: theoretical challenges and future directions. International marketing review30(1), pp.56-71.

Oni, A.O. and Oni, I., 2018. Impact Of Social Media On Consumer Behaviour.

Pattanachai, K., 2015. The Impact of Social Media Marketing On Fine Dining Choice Decision.

Scheinbaum, A.C. ed., 2012. Online consumer behavior: theory and research in social media, advertising and e-tail. Routledge.

Schivinski, B. and Dabrowski, D., 2016. The effect of social media communication on consumer perceptions of brands. Journal of Marketing Communications22(2), pp.189-214.

Short, J., Williams, E., and Christie, B. 1976. The social psychology of telecommunications. Hoboken, NJ: John Wiley & Sons, Ltd.

Stephen, A.T., 2016. The role of digital and social media marketing in consumer behavior. Current Opinion in Psychology10, pp.17-21.

Tariq, A., 2017. Examining the effect of Consumer’s Brand Related Social media activities on the Brand Relationship Quality. Moderating role of Extroversion. M.Sc. Thesis. CAPITAL UNIVERSITY OF SCIENCE & TECHNOLOGY. Islamabad

Voeth, M. and Herbst, U., 2008. The concept of brand personality as an instrument for advanced non-profit branding–an empirical analysis. Journal of Nonprofit & Public Sector Marketing19(1), pp.71-97.

Wang, Y.-H. and Tsai, C.-F., “The Relationship between Brand Image and Purchase Intention: Evidence from Award Winning Mutual Funds,” The International Journal of Business and Finance Research, Vol. 8, No. 2:27-40, 2014.

Xue, F. and Muralidharan, S., 2015. A green picture is worth a thousand words?: Effects of visual and textual environmental appeals in advertising and the moderating role of product involvement. Journal of Promotion Management21(1), pp.82-106.



Calculate Your Order

Standard price





Pop-up Message