Research Proposal On

The Impact Of Social

Media On Individuals
and Businesses

Written by Khurram Chaudhry

May 17, 2017
Provisional Title:
Measuring The Impact Of Artificial Intelligence And Human-Machine Interactions In Social Media On
Consumer Behavior And Market Structure: A Comparative Study Of The Privacy Concerns Of Consumers
And The Use of Big Data By Businesses Using Cost-Benefit Frameworks And Social Influence Process
Theories.

Abstract
The worlds most valuable resource is no longer oil, but data,1 according to the Economist, and the
new data economy requires a rethinking of privacy and antitrust laws. Firms such as Amazon, Microsoft,
Facebook and Googles Alphabet are one of the most valuable listed firms in the world2, and their
dominance in the market has prompted calls for them to be broken up - similar to how Standard Oil was
in the early 20th century. In addition, these companies have an even greater obligation to protect the
personal information entrusted to them, no matter how its processed3.

The newest and most sought after tool in digital marketing today is Artificial Intelligence (AI), and the
businesses who seek to manage their brands and touch points in social media more effectively are
investing in marketing automation solutions which employ AI to interpret specific details about
potential customers, such as where they spend time online, what products they like and how they use
social media, and apply deep layers of analysis to determine relevant marketing messages4.

The central question that this research project will ask is: What information is AI currently processing
about consumers, what are consumers attitude towards this, how does it affect their behavior, how are
firms processing this information as Deep Learning and how will proprietary algorithms that are the
exclusive intellectual properties of individual companies shape the market and social media
management, with regard to competitive market structure and consumer privacy?

Methodology
This research requires innovative methods to understand how consumers identify with social media -
and the growing trends and attitudes towards new technologies, specifically with reference to greater
human-machine interaction and virtual marketplaces. Real-time captures of social networking timelines

1
"The world's most valuable resource is no longer oil, but data." 6 May. 2017,
http://www.economist.com/news/leaders/21721656-data-economy-demands-new-approach-antitrust-rules-worl
ds-most-valuable-resource. Accessed 17 May. 2017.
2
"The world's most valuable brands revealed | The Independent." 1 Feb. 2017,
http://www.independent.co.uk/news/business/news/worlds-most-valuable-brands-facebook-google-apple-amazo
n-a7556571.html. Accessed 17 May. 2017.
3
"Big data vs. privacy: the big balancing act - Information Age." 4 Aug. 2016,
http://www.information-age.com/big-data-vs-privacy-big-balancing-act-123461795/. Accessed 17 May. 2017.
4
"3 Ways to Take Advantage of Artificial Intelligence in Social Media."
https://www.oktopost.com/blog/artificial-intelligence-in-social-media/. Accessed 17 May. 2017.
and news feeds, as well as online surveys, web chats and webinars have greatly enhanced and enriched
how consumer insights can be captured. In addition, qualitative studies will provide explorative
feedback on what are the trending technologies and interfaces popular in the target segment. Specific
regions such as North America, Western Europe and the Pacific Rim are proposed to be targeted where
significant tech-savvy consumers exist, and the desired segments will be Millennials of both genders
who have a significant social media presence - and who spend a significant amount of time online.

A parallel study will be inducted in tandem which will explore how digital marketing managers utilize
social media for brand activation and product promotion and the tools employed in collecting consumer
data. Specific touch points will be identified and those companies will be targeted that have made
significant investments in AI, marketing automation, and Virtual Reality (VR) and/or Augmented (AR)
interfaces. This study will focus more on the cutting-edge technologies that create virtual marketplaces
and social media where companies have an opportunity to employ deep learning strategies. This study
will not focus on sites such as Facebook, Twitter or Instagram alone, but will be targeting new virtual
spaces where human-machine interaction is also present.

AR is set to become the primary driver of a $108 billion VR/AR market by 2021 (underperform $94
billion, outperform $122 billion), with AR taking the lions share of $83 billion and VR $25 billion5
[Exhibit 1]. Companies such as Facebook and HTC have launched Oculus Rift and Vive, respectively, and
Samsung has recently introduced an experimental hands-free VR interface called FaceSense6 at the VRLA
Expo 2017 in Los Angeles.

Exhibit 1
In order to measure the costs and benefits, the adoption of a social influence process theory is proposed
where we examine three enticementsthe motivation of relationship management through SNS, the

5
"The reality of VR/AR growth | TechCrunch." 11 Jan. 2017,
https://techcrunch.com/2017/01/11/the-reality-of-vrar-growth/. Accessed 17 May. 2017.
6
" C-Lab's FaceSense Introduces Biometric-based VR Navigation ...." 25 Apr. 2017,
https://news.samsung.com/global/c-labs-facesense-introduces-biometric-based-vr-navigation. Accessed
17 May. 2017.
perceived usefulness of SNS for self-presentation, and the subjective social norms of using SNS7, as
co-developed by Professor Jinyoung Min8.

In addition, existing literature, journals and published research will be explored, as well as blogs by
prominents entrepreneurs such as Jeff Bezos, Elon Musk and Larry Page. Many authors and researchers
have written about social networking and so called anonymous environment and its effect on and how
consumers interact. According to a published research, the anonymity of cyberspace provides people a
unique environment to behave more freely and openly with less restraint from the real word9, and it
has also been established that individuals tended to play-act at being someone else or act out their
underlying negative impulses in the online world10. This behavior or representation of the self by
consumers has been termed as the branded self or the reflexive project of the self11.

This phenomenon has deeper implications as business who rely and invest on Big Data have a vested
interest in the data being accurate and real. An assumption can be made that businesses will want
consumers to feel comfortable in being their true self so that data captured is useful and possesses
marketable value.

To sum up, the research methodology aims to provide a unique insight into the interactive world of
social networking by capturing real-time interaction as well as consumer attitudes towards sharing their
personal information. The cost-benefit mechanism employed by the consumers when creating online
profiles and allowing businesses to provide services and products that cater to their specific needs will
require delving into the private moments of consumers to measure how close their branded self is to
their actual personality. And in tandem, the question for businesses will be closely linked - as an
assumption being made in this study is that digital marketers want the online personas of consumers to
closely reflect their real buying behavior and attitudes. A thorough study will be made on how
proprietary technology and branded virtual spaces affect the structure of the markets.

A provisional timetable for the project:

Time Period Anticipated Activities

7
"Abstract - Wiley Online Library." http://onlinelibrary.wiley.com/doi/10.1002/asi.23206/abstract. Accessed 17
May. 2017.
8
"Jinyoung Min (Chosun University, Gwangju) on ResearchGate ...."
https://www.researchgate.net/profile/Jinyoung_Min2. Accessed 17 May. 2017.
9
"Disinhibition of negative true self for identity reconstructions in ... - PLOS." 11 Apr. 2017,
http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0175623. Accessed 17 May. 2017.
10
"Identity construction on Facebook: Digital ... - ross.mayfirst.org." 17 Mar. 2008,
http://ross.mayfirst.org/files/zhao-Identity-construction-facebook.pdf. Accessed 17 May. 2017.
11
"Meat, Mask, Burden`: Probing the contours of the ... - ResearchGate." 18 Nov. 2016,
https://www.researchgate.net/publication/249671894_Meat_Mask_Burden_Probing_the_contours_of_the_bran
ded_self. Accessed 17 May. 2017.
Year One In-depth reading about Deep Learning, Virtual
Marketplaces and Impression Management

Courses on Quantitative Methods for

Managerial Sciences

Courses on Modelling Decisions and Markets

In-depth study on Social network analysis and

Social Influence Process Theories

Year Two Drafting of Literature

Review

Pilot testing of methodology and analysis

Start recruitment of participants

Data collection begins

Initial attempts of analysis

Start thesis outline and draft

Year Three Data collection ends

Final analysis

Final write up begins

Completion of final write up