Research Question and Aims

Topic: To what extent do social media platforms affect younger generations’ Consumption Patterns in UK Markets?

The aim of the study is to examine the extent to which social media has affected the UK market. The study also aims to establish how these special media platforms are used in business. Therefore, the following research questions will be used to guide the study:

The following questions will be examined as part of the research study:

1. What is the effect of social media platforms such as websites on the UK market?
2. In the UK market, which social media platforms are currently utilised?
3. Introduction (?300?)

Social media platforms led by Facebook and Twitter have changed the way business is conducted, especially online. The interconnectivity brought about by the phenomenon of social media has profoundly changed advertising, and how businesses keep in touch with their clients and other partners. Over time, these platforms have come to be considered as a market place by themselves (Spero & Stone, 2004).

This is especially so among younger people, according to Budden et al. (2007). Due to the opportunities offered by social media, businesses have tried to formulate strategies that tap into this market. It is easier to target market segments using social media due to the more detailed information available. Marketers have therefore had an easy time in targeting social media users, and especially young people, since they can reach them through these networks. This has been seen to increase their knowledge on purchasing patterns.

The social media has eased the creation and exchange of information (Kaplan & Haenlin, 2010). This provides a unique opportunity for businesses, whereby they are able to create and communicate content at low costs. To fully reap the benefits social media presents, businesses and marketers must be able to integrate social media into their businesses Spero and Stone (2004).

The efficiency of social media in communications has not been lost on interested parties as they look to market, sell, and research and socialise. To enable businesses retain their edge and be able to take advantage of changes in their environment, they must be able to appreciate and harness the power posed by social media (Kietzmann et al., 2011; Mangold & Faulds, 2009).

As discussed above the role of social media in influencing and analysing the consumption habits is well documented. This research will look at this influence in the American market. As is already clear, those companies with better and more positive social media presence are likely to be more successful. The research will examine why this is the case (Hu et al., 2008).

To help in the research, a randomised sample of UK businesses will be selected. 20 companies with a strong social media presence will be able to give the information required to complete the research aims.

Social commerce

Social media platforms have created new avenues that entrepreneurs can use to reach their customers. The increased use of social media has opened up new possibilities in terms of markets that could have previously not have been reached. While social commerce has given new possibilities for entrepreneurs, it has also increased the need for theories that help scholars and entrepreneurs better utilise social commerce (T. & Turbman, 2014).

The definition of social commerce itself has been an ongoing controversy, ever since Yahoo tried its forays into the discipline in 2005. Social commerce does not only include social shopping. It is not the simple buying and selling of goods and services. It involves networks of buyers and sellers, who meet on social media platforms to transact and. Sellers, are also referred to as curators by some curators, due to their role of facilitators of social commerce. Social commerce is enabled by electronic commerce. Using this tool, it is possible for social media platforms to actually become marketplaces, on which clients can buy products and easily pay sellers (Baethge, Klier, & Klier, 2016).

Literature Review

Social commerce is important since through it, new business opportunities that previously did not exist have been exploited. At the same time, businesses have gained access to large and diverse markets, resulting in more revenues. Social commerce has also improved the quality of customer service businesses give to their customers.

Sharing economy

A sharing economy refers to a situation whereby private individuals are able to exchange goods and services for free, or at a fee. The sharing economy has over time come to rival conventional business models. This concept has been tried by Uber and others, with astounding success. The rise of independent workers has also been associated with the sharing economy and the role of social media in this. These types of workers have existed for long, but they are expected to be even more in years to come (Journalist’s-Resource, no date).

The sharing economy has been strengthened by the internet. People participate in collaborative networks in a sharing economy due to affordability, convenience and ease of transacting. A sharing economy also benefits from another attribute few others can boast of – the ability to have their participants actually enjoys themselves in the process. Before, economical and institutional reasons forced people away from the concept of a sharing economy. The internet, coupled with greater need for social networks and ethical issues about environmental sustainability have driven people to embrace this practice. Therefore, while the sharing economy has been in existence for a long time, it has been revolutionalize by technology, more so social networking platforms (Hamari, Sjöklint, & Ukkonen, 2016).  

Perceived risk 

According to Tsiakis, the conduct of business online, and especially on social media platforms is also influenced by safety concerns. Many consumers feel that there is a high risk of their information being divulged to the public, via untrustworthy parties which may want to profit from such information. This has a significant negative effect on buying trends using the internet. Some companies which are more trusted by online consumers are likely to enjoy more business. This translates into more business for them and less for those deemed ill equipped to guarantee the security of personal data.

Businesses that hope to tap into the infinite opportunities offered by social commerce should come up with plans to secure the data of their customers. This should be done in a collaborative way. Customers should not be asked for information that is unnecessary for the purposes of the sale or for marketing research. This will enhance the seller’s credibility. Additionally, the company should invest in security systems that are well capable of keeping cyber criminals at bay. The perceived benefits from social commerce usually overrule the misgivings about security. They should however not be taken for granted, especially in an era where people are increasingly keen to secure their privacy (Farivar & Yuan, 2016).

Peer to peer networks

In a trend similar to the sharing economy phenomenon discussed above, peer to peer networks have also gained prominence in the recent parts. These networks do not however precede the internet, but are largely a product of it. They are especially common in the sharing of electronic information such as audio and video files, eBooks and other material. The trend has come into sharp focus due to the intellectual property issues involved. Artists fear that P2P networks account for a significant loss of income, since the transfers are in many cases unauthorised and difficult to monitor (Hajli, 2016).  

Social Commerce

Despite this, the peer to peer networks are expected to become even more common in future. Future developments in the phenomenon are expected, as more people turn to the internet for more of their needs. The success of peer to peer networks lies in how the issues about copyright laws are addressed. There is also a significant concern about privacy of people who engage in these networks, as well as their long term economic viability. For now though, they do seem like t he current trend (Benyoucef & Zhang, 2016).

• Research model (Reputation, Transaction safety, Information quality)

The research aims to find out the vital role that social media plays in the current global economy, with specific focus on the American economy. The issues of social commerce, sharing economy, peer to peer networks and other social media phenomena will be examined. The secondary research will include a review of literature, to establish the precise relationship between different variables that affect them.

The issues of reputation, transaction safety and information quality are all ongoing issues which affect how social commerce is viewed. While there is great potential for this business, there are still huge obstacles to be overcome. The safety of transactions remains a lingering problem, especially a cybercriminals devise more sophisticated tools of breaching security and stealing information. The quality of information peddled in social media marketing has on some cases been erroneous, further damaging the credibility of this channel as an able competitor to traditional avenues of commerce

Despite these issues, social commerce will be around for a while longer, especially due to the changing trends towards embracing more and more of technology. The underlying challenges are likely to pose a threat to increased social commerce activity (Benyoucef & Zhang, 2016).   

Sample selection 

The selection of the random will not be random, but will be carefully considered. 20 companies with a prominent social media presence will be chosen. The companies will be from five sectors – financial services, government, online shopping, manufacturing and multinationals. Their suitability will also be judged on the accessibility of data to evaluate the objectives of research.

The sample will be informed through emails and letters, whichever is applicable. They will be required to fill a questionnaire and where possible, a short interview with the relevant personnel.

The research will not be limited to these companies. Current trends will be examined to predict the future of this industry.

Ethical issues or validity and reliability

The issues of ethics will be considered very seriously in the research. For instance, the issue of privacy of information generated will be a top priority of research. The information will not be applied for any other purpose besides the intended ones. Additionally, the information will not be shared with any other party under any circumstances.

 All parties who will take part in the research will be required to sign a consent form. This form will clearly state the nature of research, and how their information will be used. Only upon receipt of the signed consent form will the research commence in relation to specific parties.

References 

Baethge, C., Klier, J., & Klier, M. (2016). Social commerce—state-of-the-art and future research directions. Springer Journals , 26 (3), 269–290.

Benyoucef, M., & Zhang, M. (2016). Emerging Issues and Trends in Social Commerce. Journal of Innovation in Digital Ecosystems , Published online.

Farivar, S., & Yuan, Y. (2016). Understanding Social Commerce . Twenty-second Americas Conference on Information Systems (pp. 1-10). San Diego: California State University.

Hajli, N. (2016). Social Commerce and the Future of e-Commerce. Computers in Huma nbehavior , published online.

Hamari, J., Sjöklint, M., & Ukkonen, A. (2016). The Sharing Economy: Why people participate in collaborative consumption. Journal of the Association for Information Science and Technology , 67 (9), 2047-2059.

Journalist’s-Resource. (no date). Uber, Airbnb and consequences of the sharing economy: Research roundup. Retrieved 03 15, 2017, from journalistsresource.org: https://journalistsresource.org/studies/economics/business/airbnb-lyft-uber-bike-share-sharing-economy-research-roundup

T., L., & Turbman, E. (2014). Introduction to the Special Issue Social Commerce: A Research Framework for Social Commerce. INternational Journal of Electronic Commerce , 5-14.

Tsiakis, T. (2012). Consumers’ Issues and Concerns of Perceived Risk of Information Security in Online Framework. The Marketing Strategies. Procedia – Social and Behavioral Sciences , 62, 1265-1270.