Money in Motion: Financial Literacy, Fintech and Behavioural Insights in Emerging India (ISBN: 978-93-49468-66-5)

Role of Social Media Marketing in Influencing Purchase Decisions of Indian Consumers

Author: Ms Anuradha Sarin & Ms Alveera Khan

The world is rapidly evolving, and the use of internet-connected devices has become more widespread than ever, making social media platforms like Instagram, YouTube, Facebook, WhatsApp, LinkedIn, and X (formerly known as Twitter) a part of our lives. These platforms have revolutionized how people communicate, how they access information and how they interact with brands. Social media has not only helped connect people on a social level across distances, but it is also a very powerful marketing space that allows companies to talk about their products, generate brand awareness, communicate with users and make decisions about what they buy. The importance of social media marketing for businesses, as well as for researchers, has grown in the context of the ever-increasing digital engagement of consumers. In this context, the current study focuses on the impact of social media marketing on the buying behaviour of the Indian consumers. Among the dimensions of social media marketing studied are influencer recommendations, content created by the firm, UGC, customer reviews and ratings, promotional offers and discounts, as well as interactive communication with the brand. It aims to explore the effect of such factors on the consumer's awareness, trust building, evaluation of the product, and its intention to purchase. Special focus is dedicated to the Indian context, where the adoption of technology has taken a huge leap and social media has changed the buying trend of the people. The study utilizes primary data obtained from a structured questionnaire which was given to 125 respondents that engage in social media platforms. Results revealed that social media has a pivotal role in product discovery, information search, brand comparison and purchase consideration. The promotional incentives, interactive content and peer generated reviews were identified as factors that impact consumer behaviour, and that influencer marketing was more effective at creating awareness than trust. Overall, the study highlights the significant influence of social media marketing on consumer purchasing decisions in India and offers valuable guidance for marketers looking to craft successful digital marketing strategies, improve customer engagement, and foster lasting customer relationships.

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