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- International Journal of Management (IJM)
Volume 11, Issue 2, February 2020, pp. 14–22, Article ID: IJM_11_02_002
Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=11&IType=2
Journal Impact Factor (2020): 10.1471 (Calculated by GISI) www.jifactor.com
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
© IAEME Publication Scopus Indexed
AN EMPIRICAL EXAMINATION OF THE
IMPACT ON SOCIAL MEDIA ON BUSINESS
Dr. SwetaRani
Assistant Professor, Army Institute of Management, Kolkata, India
Snehashish Patra
Student, Army Institute of Management, Kolkata, India
ABSTRACT
This is a project about the economic impact of social media on business entities. It
is in line with the initiative of the government for digitalization for business purposes.
The primary aspects of social media that are being considered for these projects are
WhatsApp, Facebook, Instagram. The usage of social media for the various purposes
done by the business entities has been considered. Data collection has been done
through a survey. In today’s world of globalization and digitalization where our
business stands I have tried to find out. This has a direct impact with the volume of
business done by the entity. So it has been named as the economic impact of social
media.
Keywords: Growth, MSME, Public Sector Banks, Performance, Impact.
Cite this Article: Dr. SwetaRani and Snehashish Patra, An Empirical Examination of
the Impact on Social Media on Business, International Journal of Management (IJM),
11 (2), 2020, pp. 14–22.
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=2
1. INTRODUCTION
This is a project about the economic impact of social media on business entities. It is in line
with the initiative of the government for digitalization for business purposes. The primary
aspects of social media that are being considered for these projects are WhatsApp, Facebook,
Instagram.
The usage of social media for the various purposes done by the business entities has been
considered. Data collection has been done through a survey. This survey has been conducted
at various shops and outlets of almost all the types of industries. There has been a primary
data collection conducted through this survey. It consisted of a concise and elaborate
questionnaire that contained the various aspects of usage of social media. The respondents
had to answer those questions and their valuable opinions have been recorded in the survey.
This data has been used for analysis through the analytical tools and techniques. The
importance and relevance of social media for business have been found out as per the
http://www.iaeme.com/IJM/index.asp 14 editor@iaeme.com
- Dr. SwetaRani and Snehashish Patra
analysis. In today’s world of globalization and digitalization where our business stands I have
tried to find out. This has a direct impact with the volume of business done by the entity. So it
has been named as the economic impact of social media. It affects the economic position of
the entity individually as well as it affects the economy of the industry to which it belongs. It
has impact both at micro and macro level.
2. LITERATURE REVIEW
Raman Deep Kaur (Blog writer of Myindia.com) - Role of social media in business and
consumer market in India cannot be undermined. It is the change in consumers’ behavior that
is changing the role of social media in India. With time, use of social media has seen a drastic
change from just used for fun to fun plus knowledge and marketing. For business purposes,
Facebook is the most important social media platform as there is customers’ engagement,
followed by Twitter, YouTube and blogging.
Mohammed Begum (Lecturer of Ameen Institute of Information Sciences) - In 2017,
80% businesses have increased their digital marketing budget, which may have surpassed the
IT budget. Only the illiterates cannot access the potentials of the digital marketing because of
the accessibility to computing devices and computer education. Many of the people in this
category still don’t trust the method of an online payment and they lack training in English
Language and other foreign languages to market online in global markets.
Lips India Blogs - Customer acquisition is essentially the art of building and maintaining
relationships to improve the traditional customer acquisition and retention processes. It’s not
restricted to social media, but social media is certainly a good place to start. Apart from the
traditional push marketing, pull marketing has also become an integral part of the system.
70% of the people trust brand recommendations from friends and family. People talk about
different brands on social media, follow them or even like the pages. And the cost of not
being involved with social media is rising with every single day.
Lyfe Marketing (A Marketing Website)- Social media proves to be a powerful tool
when it comes to growing your brand awareness. There are businesses who dismiss it as a
way to build a brand, but by doing that, they’re leaving an open ground for competitors. On
the other hand, many reputable chief marketing officers agree that social media has a definite
impact on brand awareness. Before you start focusing on a particular social platform, find out
whether your target audience is on it. You can do this by searching for relevant conversations
about your product or industry.
3. RESEARCH METHODOLOGY
Research methodology is a systematic theoretical analysis of methods applied to field of
study. It comprises of body of methods and principles associated with a branch of knowledge.
This process is used to collect information and data.
4. RESEARCH DESIGN
Research design is the framework that has been designed to seek answers to the research
questions. The arrangement of conditions for the collection and analysis of data in a manner
that aims to combine relevance to the research purpose. Research design is the collection,
measurement and analysis of data. It provides the outline as to what the researcher will do
from writing the hypothesis to operational findings to final analysis of the data. It is
conceptual structure for conducting research.
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- An Empirical Examination of the Impact on Social Media on Business
Exploratory- An Exploratory research design is conducted for a research problem for
gaining insights and for investigation undertaken when problems are in the preliminary stages
of investigation.
Conclusive - Conclusive research is used for statistical tests, advanced analytical
techniques, larger sample sizes with exploratory studies. It is more likely to be used for
quantitative studies than for qualitative studies.
Conclusive Research has two types- Descriptive Research-Descriptive research is a type
of conclusive research. It means that it gathers quantifiable information that can be used for
statistical inference on target audience through data analysis. As a consequence, this type of
research takes the form of close ended questions which limits its ability to provide unique
insights. This research design is followed in this study.
Casual Research- As the name specifies tries to determine the cause underlying a given
behavior. It finds the cause and effect relationship between variables. It seeks to determine
how the dependent variable changes with variations in the independent variable.
Data Collection-Data collection is the process of gathering and measuring information on
variables of interest, in an established systematic fashion that enables one to answer stated
research questions, test hypotheses, and evaluate outcomes.
4.1. Methods of Data Collection
The instrument that was used for collecting data were:
1-Structured designed questionnaire in tablet
2-Face to face interview
3- Personal interview
Sample size -The sample size refers to the number of units that were chosen for collecting
the data. There is a designated sample size which is number of sample units selected for data
collection.
Sample size- 300
5. DATA ANALYSIS & FINDINGS
5.1. Type of Digital Media used
Interpretation
From the above pie chart, it can be observed that most of the respondents (67%)prefer only
WhatsApp for their business activities followed by the respondents (22%) who prefer both
WhatsApp and Facebook for their business activities. People use Facebook (7%) for business
purposes and they use Facebook
- Dr. SwetaRani and Snehashish Patra
Table 1 Classification of org according to number of workers I am going to read out the names of
some digital platform Cross tabulation
Count
Q1212Iamgoingtoreadoutthenamesofsomedigitalplatform Total
Facebook Facebook, Facebook, Facebook, Facebook, WhatsApp WhatsApp,
Instagram WhatsApp WhatsApp WhatsApp,
Instagram
classification small 1 0 0 5 1 29 0 36
of org Large 2 0 0 10 0 8 0 20
according to Micro 22 1 1 48 6 162 1 241
number of 0 0 0 2 2 3 0 7
Medium
workers
Total 25 1 1 65 9 202 1 304
Table 2 Chi-Square Tests
Value Df Asymp. Sig. (2-sided)
Pearson Chi-Square 32.069a 18 .022
Likelihood Ratio 22.644 18 .205
N of Valid Cases 304
Table 3 Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Contingency Coefficient .004 .022
N of Valid Cases 304
Figure 1
Interpretation
From the above symmetric measures table, the p value can be observed as less than .05. so we
can reject H0 and we can accept H1 and we can conclude that there is significant association
between classification of organization according to the number of workers and preferred
digital platform.
Test of association between type of company and some digital platform used
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- An Empirical Examination of the Impact on Social Media on Business
Chi square Test
Ho: There is no significant association between type of company and type of digital platform
used
H1: There is significant association between type of company and type of digital platform
used.
Table 4 Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 41.937a 12 .000
Likelihood Ratio 27.849 12 .006
N of Valid Cases 304
14 cells (66.7%) have expected count less than 5. The minimum expected count is .07.
Table 5 Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Contingency Coefficient .003 .000
N of Valid Cases 304
Figure 2
Interpretation-
From the above symmetric measures table, the p value can be observed as less than.05. So we
can reject H0 and we can accept H1 and we can conclude that there is significant association
between type of company and type of digital platform used.
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- Dr. SwetaRani and Snehashish Patra
5.3. Frequent Usage of Instagram
Table 6 Frequent use Instagram
Frequency Percent Valid Percent Cumulative
Percent
More than once a day 10 3.3 66.7 66.7
About once a day 3 1.0 20.0 86.7
Valid
Few times a week 2 .7 13.3 100.0
Total 15 4.9 100.0
Missing System 289 95.1
Total 304 100.0
Figure 3
Interpretation
From the above graph we see that Instagram is used for more than once a day by 66.67%
users. The frequency of usage of Instagram is being seen here. It is found that the respondents
who use Instagram for their business purpose are using it for more than once a day. Instagram
is a important medium for them for all the factors that we have considered like getting
feedback, showing the product or service, making announcement etc. The different editing
features of a picture makes this digital app appealing to the business persons to use it.
5.4. Frequent use of WhatsApp
Table 7 How often you use WhatsApp for Business purpose
Frequency Percent Valid Percent Cumulative
Percent
More than once a day 235 77.3 85.5 85.5
About once a day 16 5.3 5.8 91.3
Valid
Few times a week 24 7.9 8.7 100.0
Total 275 90.5 100.0
Missing System 29 9.5
Total 304 100.0
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- An Empirical Examination of the Impact on Social Media on Business
Figure 4
Interpretation
From the above graph we find that WhatsApp is being used for business purposes for more
than once a day by 85.45%. WhatsApp is more of a personal medium, it provides the facility
of one to one than Facebook, Instagram. So it is being used by business persons for multiple
purposes. The proprietor or the seller can take advantage of direct communication with his
prospect customers and can inform them about their products or services.
5.5. Frequent use of Facebook
Table 8 How often you use Facebook for business purpose
Frequency Percent Valid Percent Cumulative
Percent
More than once a day 80 26.3 79.2 79.2
About once a day 12 3.9 11.9 91.1
Valid
Few times a week 9 3.0 8.9 100.0
Total 101 33.2 100.0
Missing System 203 66.8
Total 304 100.0
Figure 5
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- Dr. SwetaRani and Snehashish Patra
Interpretation
It can be seen from the above table that Facebook is being used for more than once a day. The
frequency of using Facebook is more than once a day. Facebook has wide coverage. It can be
used for making announcements or showing a product or service. All the users can see the
announcements made through the Facebook. It is a public forum. Business person can keep
using the platform of Facebook for this purpose. Facebook is thus gaining popularity and is
being used for more than once a day.
6. CONCLUSION
From the above project we find out the relevance and usage of digital platforms for business
purposes. We find that from the responses of the survey WhatsApp is being used by 65% of
the people for the business purpose. This was followed by 22% people who use WhatsApp
and Facebook. For showing the product Facebook is considered the most important medium
as it has a wide range of audience. For selling the product WhatsApp is considered the most
important medium as the business persons can communicate one to one with customers. For
making announcements Facebook is considered as most important medium as Facebook has a
wide coverage of audience.
Through the Chi-square test we found that there is significant relation between type of
organization and type of digital platform used. We also found there is significant relation
between type of organization and type of digital platform used.
WhatsApp, Facebook, Instagramare being used for more than once a day by the
businesses that are using it. Thus it indicates there is high acceptability among the persons
who are using it for the business purposes. As we move into the era of digitalization these
digital platforms are becoming more relevant with the passage of time. They have a wide
variety of features. They provide the facility of reaching out to a large audience. Physical
presence is no longer a necessity as people are using digital media to reach out to various
markets. This have a direct impact on their revenue and it is increasing. With more
adaptability and more usage of internet the relation between digital media and increase in
revenue will keep on increasing day by day.
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http://www.iaeme.com/IJM/index.asp 21 editor@iaeme.com
- An Empirical Examination of the Impact on Social Media on Business
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