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Qin Ye
Professor Lee
Introduction
In recent years, there has been a growing interest in studying the effect of social media
in consumer behavior. This interest has been motivated by the development of Web 2.0,
which has transformed the internet to a social environment by introducing social media (Lai
& Turban, 2008). In Web 2.0, internet users not only utility social media-online communities
and social networking sites-to generate content online and interact with other users (Hajli,
2014), but they also participate in e-commerce marketing through social media.
Developments in social media have made new platforms available to businesses: the
social networking site Facebook is a good example. Facebook is not only a platform that
allows users to access and share different information and experiences, but it also allows
them to participate and interact with one another. Besides individual users, an increasing
number of brands also create their Facebook pages, share up-to-date commerce information,
and interact with their fans, for the sake of enhancing popularity (de Vries, Gensler, &
Leeflang, 2012) and increasing sales (Agnihotri, Kothandaraman, Kashyap & Singh, 2012).
Currently, with the expansion of users (include individuals and brands) on Facebook,
users' activities on Facebook is growing research area. However, little attention has been
given to whether Facebook has impact on all users or just part of them, as well as the factors
The purpose of this study is to investigate the likelihood about the influence of Facebook
in user's buying behavior and examine the factors that affect Facebook users' buying
This study firstly provides a background and literature review. Secondly, two data sets
are collected to analyze the impact of Facebook among its users. One of the data sets is
buying frequency across entire buyer base and Facebook brand fans base for a chocolate
brand and a soft-drinking brand (based on 2011 consumer panel data with a 12-week rolling
average), another data set is from 1,491 adult buyers in the United States through an online
questionnaire about their buying behavior after become Facebook brand fans. By comparison
and analysis, those data reveal a striking trend of buying behavior of entire buyers and that of
Facebook brand fans, as well as the buying behavior between brand fans and non-brand fans.
Finally, the conclusions based on those data are given, as well as the future research direction.
Literature Rreview
Social media, such as social networking sites, have emerged into mass use rather
recently (Boyd and & Ellison, 2008). Because of Web 2.0 applications, social media have
provided new opportunities for users to interact with others on the internet (Hajli, 2014),
generate content online (Lai & Turban, 2008), and participate in e-commerce marketing
through social media. In recent years, there has been a growing interest in consumer
activitiesy onin social media (Heinonen, 2011) and the effect of social media in marketing,
because social media are likely to affect customers intention of purchase (Hajli, 2014).
Numerous social networking sites (SNS) that have generated reviews and content,
facilitated information sharing, and advanced social interactions. (Hajli, 2014). This
advancement enables the internet users and businesses to collaborate on the internet (Fller,
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Mhlbacher, Matzler & Jawecki, 2009). SNS users are engage ining various activities such
as, which are from consuming content, participating in discussions, sharing knowledge with
other users and contributing to other users activities (Heinonen, 2011). These activities lead
to a chain reaction: electronic word of mouth is produced, which then helps users in their
consumption decisions (Pan & Chiou, 2011), and then users are attracted online to exchange
consuming information and receive social support (Ridings & Gefen, 2004). As Yang et al.
Compared to other social networking sites, Facebook may be the only one that can boast
the speed of increasing users. With around 11 million users in 2013, and 22 million active
users in 2014, Facebook provides marketers with numerous opportunities to attract and
interact with potential customers through messages, videos, and other content (Smith, 2013).
An increasing number of brands create their Facebook pages, attract Facebook users to like
them, share up-to-date commerce information, and interact with their fans in order to enhance
popularity (de Vries, Gensler & Leeflang, 2012) and increase sales (Agnihotri et al., 2012).
Numerous studies have examined the commercial relationship between Facebook, users
and brands. Some studies have demonstrated that brand fans on Facebook may spend more
time and money on Facebook than non-fans (Brown, 2011). Facebook provides businesses
with the capability to interact with actual customers, develop potential customers (ComScore,
2011), change fans into active brand advocates, and create new networks with other users
(Nelson-Field, Riebe & Sharp, 2012). Although studies and discussions about Facebook in
marketing are common, how Facebook leverage brands and user buying behavior is still
limited and inadequate. Figuring out whether Facebook influences buying behavior of all
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users or particular users and the factors that may influences users behavior would help
brands to draw up plans regarding using Facebook to advertise their products, maintain their
Methods
To examine the impact of Facebook in buying behavior, this study used two data sets.
One of the data sets is the buying behavior data from two different groups. One group was
from Facebook Brand Fan base and another group was actual consumersa population of
typical shoppers. The study selected two brands in two different repeat-buying categories: a
chocolate brand and a soft drinking brandboth are fast moving consumer goods and have
Facebook pages.
In order to ensure consistence of the comparison between two groups, it was classified
the buyer categories: a) non-buyersnever buy the brand ; b) light buyersonce purchase;
c) moderate buyerstwo or three times purchase; and d) heavy buyersfour or more times.
There were two data collection sources used in this study. The purchase data of
Facebook Brand Fans about two brand categories (chocolate and soft drinking) were
collected by self-completion Web-based links. One link was on the brands Fan page on
Facebook, where only the fans of the brand could use the link to respond; another link was
about an online panel, where the Fans of any brand in chocolate or soft drinking category
could provide responds. The purchase data of typical shopper was a panel data about the
This study used percentage to compare the buyer proportion data across the Facebook
Brand Fan base and the entire buyer base for the same brand, and also to present the
proportion of buyer categories across Facebook Brand Fans base for chocolate and soft
drinking.
Additionally, this study also used another data sets to analyze the users buying behavior
on Facebook. This data is collected from 1,490 Facebook users who are above 18 years old in
the United States, through an online questionnaire. The percentage data of buying behavior
that was used in this study was based on Facebook brand fans.
Does Facebook have the likelihood of influencing users buying behavior? In order to
find out the answer, this study classified the level of buying rates to study the distribution of
buyer proportion across the entire buyer base and Facebook brand fan base for a same
chocolate brand. The results revealed an extremely difference between the buyer proportion
of a typical buyer population and that of Facebook brand fan base: the entire buyer group had
high percentage of non-buyers (67 percent), fewer light and moderate buyers, and only 3%
was heave-buyers, while the Fans base provided an opposite trenda particular high number
Table 1: Buyer proportion (%) across the Entire Buyer Base and Facebook Brand Fan Base
Facebook Brand 1 9 33 57
Fan
The same trend appeared in the analysis of buyer proportion regarding a soft-drinking
brand. By comparison, there was few heavy-buyers in the entire buyer group (2 percent) and
most were non-buyers (81 percent) while there was 62 percent heavy-buyers included in the
Table 2: Buyer proportion (%) across the Entire Buyer Base and Facebook Brand Fan
Fan
Table 3 showed the findings that were consistent between two different brands of two
categories across the Facebook brand fan base: the trend was skewed to heavy-buyersthere
were 56 percent of chocolate brand buyers (n=1000) were heavy-buyers and 63percent in
Table 3: Buyer Proportion (%) across the Facebook Brand Fan Base by Category.
behavior after Facebook users become brand fans on Facebook: 51 percent of Facebook fans
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likely to buy a product of the brand after they became the Facebook fans, and 56 percent of
Figure 1 Percentage of fans likely to buy from brand after becoming fans
Figure 2: Percentage of fans likely to recommend brand to friends, after becoming fans
The findings outlined above demonstrate that Facebook could not impact all users
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buying behavior, because although the two brands have their own Facebook pages, the
analyses of Table 1 and Table 2 reveal that the buyer proportion of the two brands in entire
buyer base was in a decline trendmost of buyers were non-buyers or only had bought the
However, Facebook indeed impacts fans buying behavior. Because the distribution of
buying frequency across Facebook Brand Fans base showed a striking different trendthe
heavy buyer was the biggest proportion of buyer categories in each of both brandsmore
than 50%. Another data set also revealed that Facebook users have buying intention after they
In addition, the analyses also demonstrate that Facebook may impact other users
buying behavior through their friends who are fans of brands, because more than 50 percent
Facebook users want to recommend the brands to their friends after they become brand fans.
audience for advertising. Facebook fans can share their experience regarding brands, provide
positive reviews and generate great value for both products and brands. These activities
produce electronic word of mouth (eWOM) (Hajli, 2014). The electronic word of mouth
generates when buyers share any statement about a product, brand, service and so forth
through Internet. This word of mouth may influence non-fans buying decisions through
Facebook interaction (Pan & Chiou, 2011), because brand fans often provide positive
eWOM, which could increase brand credibility and generate potential trust relationship
between brand and Facebook users. On the other hand, recommendation is a useful tool for
developing potential buyers. Research has demonstrated that potential buyers are more
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interested in brand users recommendations rather than only product information (Ridings &
Gefen 2004). By recommending, such interactions in Facebook during brand fans and other
users, could help to increase credibility and build up a networking between brands and other
Facebook users, facilitate to target potential buyers and impact Facebook users buying
behavior..
Conclusion
that represented in this study, Facebook could not impact buying behavior of all users,
although brands have their Facebook page, the proportion of heavy-buyers is virtually zero.
However, the analyses also demonstrated that the high proportion of heavy-buyer exists in
brand fans, and they prefer to buy the brand after becoming fans. The results shows that
Facebook indeed influence brand fans buying behavior, even their interaction behavior
because brand fans like recommending brands to their friends. In the process of interaction on
Facebook, the users who are not brands fans may become the brand fans. The future research
could caution brands using Facebook to drive their grouch. Furthermore, brands should learn
how to use Facebook to capture light buyers who may be the important source for brand
growth.
References
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de Vrien, L., Gensler, S., & Leeflang, P.S.H. (2012). Popularity of Bbrand posts on brand fan
Fller, J., Mhlbacher, H., Matzler, K. & Jawecki, G. (2009). Consumer empowerment
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Like-How-Brands-Reach-and-Influence-Fans-Through-Social-Media-Marketing
Nelson-Field, K., Riebe, E., & Sharp, B. (2012). Whats not to like? Can a Facebook fan
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Pan, L.-Y., & Chiou, J.-S. (2011). How much can you trust online information? Cues for
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Yang, J., Mai, E. & Ben-Ur, J. (2012). Did you tell me the truth? The influence of online