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Essay / The Impact of Social Media Retargeting on Consumer Purchase Decision
Table of ContentsCritical Analysis StatementResearch MethodologiesLiterature ReviewArmstrong, G. & Kotler, P. (2007). Marketing: an introduction. Smith, C. (2016). The Conversion Code: Capture Internet Leads, Create Quality Appointments, Close More Sales. Blanchard, O. (2011). ROI of social media. Chauhan, S. and Rathore, S. (2014). Ethics in behavioral targeting: mapping consumer perceptions. Stephen, A. (2016). The role of digital marketing and social media in consumer behavior. Zarouali, B., Ponnet, K., Walrave, M. and Poels, K. (2017). “Do you like cookies?” Adolescents' skeptical treatment of retargeted Facebook ads and the moderating role of privacy concern and textual debriefing.Taylor, G. (2018). 57% of shoppers say retargeting has no influence on online purchasing decisions. Steingold, L. (2018). Advertising in the age of mobile, social networks and AI. The purpose of this research is to try to understand how retargeting on the social media platform Instagram can influence the consumer's purchasing decision. Instagram is of particular interest as research from marketing companies across the UK suggests that social media users aged 18-25 are leaving Facebook faster than expected and flocking to Instagram. Instagram currently has 800 million users worldwide; 63% of these users are aged between 18 and 25. This creates a mass audience that organizations can target and submit for retargeting. It is therefore essential that marketers know how to advertise to this age group. Uses and gratification theory will help understand why and how people seek out one social media platform over another, assuming the consumer has full control over it. This research will examine knowledge of retargeting among this age group in the UK and challenge their understanding of what it is and how it works. The aim is to find out whether people in this age group find retargeting useful in their purchasing decision, or whether they think it is unethical and an invasion of their privacy, and, furthermore, if it deters people from purchasing from that organization. plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay It also aims to further explore consumers' knowledge about a company's data and cookie usage. As consumers become increasingly aware of companies storing their personal data, due to new GDPR regulations, the study aims to reveal whether people fully understand what personal data they allow companies to have and what Online activities companies can track after accepting their cookie. policies. To understand this, research needs to be done into how GDPR has affected the way organizations can use data tracking files, as well as different cookie policies, to see how much information there is. 'they reveal to the consumer at first glance. The Technology Acceptance Model will take the insights found using Uses and Gratification Theory further, mapping and showing how, or if, consumers have come to accept consumer data technology. cookies and, therefore, retargeting on social media platforms. Research conductedby Brandweek” suggests that online advertising was the least effective at engaging consumers and, therefore, influencing a purchase. This contradicts other research conducted, which found that retargeted marketing influences the consumer's purchasing decision. However, a study conducted by Mangold and Faulds in 2009 explores social media as a new element in the promotional mix due to its multiple opportunities to influence the consumer's purchasing decision. Andrew Stephen agrees with this, saying that information from social media has a major influence on consumer decision-making. However, we cannot exclude that among 18-25 year olds, retargeting becomes less effective, as they become more skeptical about their privacy, especially online. The theory of technological determinism assumes that technological advances are the primary influence on social relations and cultural practices. So it will be useful to see how retargeting has affected the online shopping experience and what consumers think of the retargeted brand. People aged 18-25 use Instagram more than any other social media platform, so it is the ideal channel for businesses to retarget products and services towards this age group, helping to influence the decision of consumer purchase. However, in a data-conscious society, this age group finds retargeting invasive and wants to find solutions to prevent it from happening. How does retargeting, via the use of Instagram, influence the purchasing decisions of consumers aged 18 to 25? How invasive does this retargeting become?Critical Analysis StatementTechnological Determinism: As this research focuses on how retargeting affects the consumer's purchasing decision, it is important to explore the theory of technological determinism because it assumes that the technology of society determines the development of its social structure and cultural values. He argues that technological advances are the main influence on social relations and cultural practices. It will be able to determine whether technological advances in the use of cookies, among online businesses, are the main driver of social change in purchasing habits. Uses and Gratification Theory: I want to understand why consumers use a particular social media platform over others. , and therefore, businesses retargeting online. This theory seeks to understand why and how people actively seek out specific media to satisfy specific needs. However, this assumes that people have power over the media they use, rather than positioning them as passive consumers of the media. This will give me a different perspective since the research examines whether consumers are influenced by media. Technology Acceptance Model: This is an information system theory that models how users come to accept and use technology. It will be interesting to see if we have come to accept that companies use our information to retarget their products through the use of social media. Research Methodologies The research conducted will mainly focus on secondary qualitative data, in order to acquire existing and up-to-date knowledge. on how many young people aged 18 to 25 use Instagram and how they use it. It will also review research already done on ethical guidelines established for businesses using retargeting, as well as new GDPR regulations and guidelines established for organizations onthe use of cookies online. Primary research will also be conducted to ensure up-to-date information. Firstly, using primary qualitative collection, in the form of questionnaires, the research will make it possible to understand what 18-25 year olds think about retargeting on social networks in general and more specifically on Instagram. It will also examine whether they find it invasive or whether it helps them decide, thereby influencing their purchasing decision. However, in order to help explain why people responded a certain way, focus groups will be held, allowing more probing questions to be asked to see if there is a difference in responses when They are placed in a group situation, rather than responding alone. Using case studies will help better understand how retargeting has worked in the past, especially on other social media platforms, because even though retargeting has only just become a part of the Instagram feed, Other social media platforms, such as Facebook, have been subject to retargeting for many years. Case studies are essential because they capture the complexity of real-world situations. This method integrates qualitative and quantitative data, allowing for comprehensive and synergistic data analysis. However, a case study has its limitations, as it often makes it difficult to reach generalizations or conclusions, but it will give a good indication of how retargeting affected the consumer's purchasing decision over another platform and will allow a comparison. Literature Review Armstrong, G. & Kotler, P. (2007). Marketing: an introduction. This book suggests that consumers are increasingly concerned about how organizations use their personal data online to contribute to marketing efforts, thereby influencing the consumer's purchasing decision. However, it also examines and contradicts this research by exploring how companies use the information they obtain and how this could result in a mutually beneficial relationship for the consumer and the company. Armstrong raises the question: are consumers aware of how their information is used? Smith, C. (2016). The Conversion Code: Capture Internet Leads, Create Quality Appointments, Close More Sales. In Conversion Code, he examines how businesses can best use retargeting and expresses concerns about overwhelming consumers with too many social media ads. It states that retargeting is essential for an organization because it is the link between marketing and advertising. This book takes stock of the new sales environment and explores the reasons for the downward spiral of traditional media and why it is so important for marketers to start advertising online. It also provides insight into how marketers can find, reach, engage consumers and position themselves as the ideal solution to the consumer's needs. Blanchard, O. (2011). ROI of social media. Blanchard examines the ROI that organizations and markets get from traditional forms of media versus the ROI they get from advertising on social media platforms. Traditional media has a “spend and reach” mentality, but it’s clear that this doesn’t always work. Blanchard suggests that social media connects people in a useful, meaningful, and practical way, on their own terms; which means after thousands of messages.