UNIVERSITY OF GHANA 

COLLEGE OF HUMANITIES 

UNDERSTANDING HOW USERS MAKE PURCHASE DECISION ON 

SOCIAL MEDIA: CHOICE-BASED CONJOINT ANALYSIS APPROACH 

 

 

 

BY: 

RICHMOND MAWULI KUDJORDJI 

(10563193) 

 

A THESIS SUBMITTED TO THE UNIVERSITY OF GHANA, LEGON, IN 

PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD 

OF MASTER OF PHILOSOPHY (MPHIL) IN MANAGEMENT 

INFORMATION SYSTEMS DEGREE 

OCTOBER, 2023 

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I 

 

DECLARATION 

In accordance with academic standards, I affirm that the present thesis constitutes 

my original research and that no part of it has been previously submitted by myself 

or any other individual for the purpose of obtaining an academic degree in this or 

any other institution. Additionally, all sources cited within this work have been duly 

acknowledged. 

 

  

 

 

 

 

 

 

 

 

 

……………………………. 

Richmond Mawuli Kudjordji 

(Student) 

……………………………… 

Date 

31/10/2023 

…………………………….. 

Dr. Eric Afful-Dadzie 

(Supervisor) 

……………………………… 

Date 

…………………………….. 

Dr. Emmanuel Kolog Awuni 

(Co-Supervisor) 

……………………………… 

Date 

31/10/2023 

 

31/10/2023 

 

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DEDICATION 

I humbly dedicate this work to the Almighty God, who has granted me the 

opportunity, strength, and wisdom to undertake this study. Additionally, I sincerely 

thank my beloved parents for their unending love, unwavering support, 

encouragement, and prayers. 

 

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III 

 

ACKNOWLEDGEMENT 

I want to express my sincere gratitude and appreciation to all those who have 

contributed to the completion of this research paper. 

First and foremost, I would like to extend my heartfelt thanks to my supervisors, 

Drs. Eric Afful-Dadzie and Emmanuel Kolog Awuni for their invaluable guidance, 

insightful feedback, and unwavering support throughout the research process. Their 

expertise and encouragement have been instrumental in shaping my research and 

helping me achieve this study's goals. 

I am also profoundly grateful to the participants who willingly gave their time and 

effort to participate in this research. Without their valuable contributions, this study 

would not have been possible.  

I would also like to acknowledge the contributions of the academic and 

administrative staff of the University of Ghana, who provided me with essential 

resources and support that helped me complete this research. 

In addition, I would like to extend my sincere appreciation to my family and friends 

for their encouragement, motivation, and understanding during this research. Their 

unwavering love and support have been a constant source of strength and inspiration. 

Finally, I would like to express my gratitude to all the researchers whose work and 

publications have been used as references in this paper. Their research has been an 

invaluable source of knowledge and inspiration, and I am grateful for the insights 

and ideas that have contributed to the development of this study. 

Thank you all for your invaluable contributions.  

 

 

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IV 

 

TABLE OF CONTENTS 

DECLARATION............................................................................................................................ I 

DEDICATION.............................................................................................................................. II 

ACKNOWLEDGEMENT .......................................................................................................... III 

LIST OF TABLES ................................................................................................................... VIII 

LIST OF FIGURES .................................................................................................................... IX 

LIST OF ABBREVIATIONS ..................................................................................................... X 

ABSTRACT ................................................................................................................................. XI 

CHAPTER ONE ........................................................................................................................... 1 

INTRODUCTION......................................................................................................................... 1 

1.1 Research Background ....................................................................................................... 1 

1.2 Research Problem ............................................................................................................. 5 

1.3 Research Purpose ............................................................................................................. 8 

1.4 Research Objectives ......................................................................................................... 8 

1.5 Research Questions .......................................................................................................... 8 

1.6 Research Significance ...................................................................................................... 8 

1.7 Organisation of the Study ................................................................................................. 9 

CHAPTER TWO ........................................................................................................................ 11 

LITERATURE REVIEW .......................................................................................................... 11 

1.8 Introduction .................................................................................................................... 11 

1.9 Social Media ................................................................................................................... 11 

1.10 Social Media vs. Social Networks .............................................................................. 12 

1.11 Evolution of Social Networks ..................................................................................... 14 

1.12 Reasons for Using Social Networking Sites ............................................................... 15 

1.13 Social Networking Sites ............................................................................................. 16 

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1.14 Facebook ................................................................................................................. 16 

1.15 Instagram................................................................................................................. 17 

1.16 Twitter ..................................................................................................................... 18 

1.17 LinkedIn .................................................................................................................. 18 

1.18 Advertising on Social Media ...................................................................................... 19 

1.19 Purchasing Decision ................................................................................................... 23 

1.20 Demographic Factors That Influence Purchase Decision-Making on Social Media

 24 

1.21 Factors That Influence Purchasing Decisions on Social Media.............................. 26 

1.22 Influence of Social Media on Purchasing Decisions .............................................. 27 

1.23 Chapter Summary ....................................................................................................... 28 

CHAPTER THREE .................................................................................................................... 29 

THEORETICAL FOUNDATION ............................................................................................ 29 

1.1 Introduction .................................................................................................................... 29 

1.2 Evolution of the Consumption Values Theory ............................................................... 29 

1.3 Consumption Values Theory .......................................................................................... 30 

1.4 Functional Value......................................................................................................... 32 

1.5 Social Value ................................................................................................................ 33 

1.6 Emotional Value ......................................................................................................... 33 

1.7 Epistemic Value .......................................................................................................... 33 

1.8 Conditional Value ....................................................................................................... 34 

1.9 Random Utility Model ................................................................................................... 34 

1.10 Chapter Summary ....................................................................................................... 36 

CHAPTER FOUR ....................................................................................................................... 37 

RESEARCH METHODOLOGY .............................................................................................. 37 

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1.11 Introduction ................................................................................................................ 37 

1.12 Research Paradigm ..................................................................................................... 37 

1.13 Positivist Paradigm ................................................................................................. 39 

1.14 Interpretive Paradigm.............................................................................................. 40 

1.15 Critical Paradigm .................................................................................................... 42 

1.16 Choice of Positivist Paradigm ................................................................................. 44 

1.17 Research Design and Methods ................................................................................... 44 

1.18 Experimental Design ............................................................................................... 46 

1.19 Survey as A Design .................................................................................................... 48 

1.20 Research Population................................................................................................ 48 

1.21 Sampling Method .................................................................................................... 49 

1.22 Sample Size ............................................................................................................. 50 

1.23 Data Collection ........................................................................................................... 52 

1.24 Data Analysis .............................................................................................................. 53 

1.25 Choice-Based Conjoint Model ................................................................................ 53 

1.26 Hierarchical Bayes .................................................................................................. 54 

1.27 Model Fitness Test...................................................................................................... 55 

1.28 Ethical Issues and Consideration ................................................................................ 55 

1.29 Chapter Summary ....................................................................................................... 56 

CHAPTER FIVE ........................................................................................................................ 57 

RESEARCH ANALYSIS AND FINDINGS ............................................................................. 57 

1.1 Introduction .................................................................................................................... 57 

1.2 Data Cleaning ................................................................................................................. 57 

1.3 Demographics................................................................................................................. 58 

1.4 Results ............................................................................................................................ 61 

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1.5 Model Fitness ................................................................................................................. 70 

1.6 Chapter Summary ........................................................................................................... 72 

CHAPTER SIX ........................................................................................................................... 73 

DISCUSSIONS ............................................................................................................................ 73 

1.1 Introduction .................................................................................................................... 73 

1.2 Unveiling Consumer Decision-making on Social Media: A Choice Framework .......... 73 

1.3 The Social Media Trade-Off: Prioritizing User Attributes for Purchasing Decisions ... 76 

1.4 Unlocking Consumer Preferences: Analysing Demographic Variations ....................... 78 

1.5 Chapter Summary ........................................................................................................... 80 

CHAPTER SEVEN ..................................................................................................................... 82 

SUMMARY, CONCLUSION AND RECOMMENDATION ................................................. 82 

1.6 Introduction .................................................................................................................... 82 

1.7 Summary ........................................................................................................................ 82 

1.8 Implication for Research, Practice and Policy ............................................................... 88 

1.9 Implication for Research ............................................................................................ 88 

1.10 Implication for Practice........................................................................................... 88 

1.11 Implication for Policy ............................................................................................. 89 

1.12 Study Limitations ....................................................................................................... 89 

1.13 Future Research Directions ........................................................................................ 89 

REFERENCES ............................................................................................................................ 91 

APPENDIX ................................................................................................................................ 119 

 

 

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VIII 

 

LIST OF TABLES 

Table 2.0.1: Definitions of Social Media Attributes & Sub-attributes ......................................... 21 

Table 4.0.1: Population ................................................................................................................. 49 

Table 4.0.2: Sample Size of the Study .......................................................................................... 51 

Table 5.0.1: Percentage Distribution of Respondents’ Sex (Gender) ........................................... 58 

Table 5.0.2: Percentage Distribution of Respondents’ Age .......................................................... 58 

Table 5.0.3: Percentage Distribution of Respondents’ Educational Status .................................. 59 

Table 5.0.4: General Social Media Usage .................................................................................... 60 

Table 5.0.5: Frequency of Advertisements on Social Media Platforms ....................................... 60 

Table 5.0.6: Influence of Social Media Advertisements on Purchasing Decisions ...................... 61 

Table 5.0.7: Means of Attributes .................................................................................................. 62 

Table 5.0.8: Part-worth Utilities and Relative Importance of the Attributes and Sub-Attributes 63 

Table 5.0.9: Relative Importance of Attributes Across Demographic Groups ............................. 66 

Table 5.0.10: Goodness Fit Statistic ............................................................................................. 71 

Table 7.0.1: Mapping Research Objectives and Findings and Contributions (Matrix) ................ 85 

 

 

 

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LIST OF FIGURES 

Figure 3.0.1: Consumption Values Theory ................................................................................... 31 

Figure 4.0.1: Choice Task ............................................................................................................. 47 

Figure 6.1: Choice Framework ..................................................................................................... 74 

 

 

 

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LIST OF ABBREVIATIONS 

AD - Advert 

AHP - Analytical Hierarchy Process 

AIC - Akaike Information Criterion 

CA - Conjoint Analysis 

CBC - Choice-Based Conjoint  

CVT - Consumption Values Theory 

DF - Degrees of Freedom 

DM - Decision Making 

GIMPA - Ghana Institute of Management and Public Administration 

HB - Hierarchical Bayes 

IS - Information Systems 

RMSE - Root Mean Squared Error 

RUM - Random Utility Model 

SBC - Schwarz Bayesian Criterion 

SC - Social Commerce 

SM - Social Media 

UG - University of Ghana 

 

 

  

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XI 

 

ABSTRACT 

The continuous advancement of technology has profoundly influenced users' decision-making 

process, particularly within social media. With social media platforms firmly ingrained in our daily 

lives, users are confronted with an abundance of choices and information that profoundly shape 

their decision-making behaviours. A notable consequence of the evolution of social media is the 

rise of social commerce, which empowers users to engage in commercial activities directly on 

these platforms. By leveraging social media, businesses can effectively showcase their products or 

services, while users can make purchases without leaving the platform. 

In light of this dynamic landscape, the primary objective of this study is to delve into the intricacies 

of how users navigate their purchase decisions on social media, primarily focusing on the role 

played by the available attributes within these platforms. This research sheds light on the factors 

influencing users' decision-making processes in social media-based transactions by closely 

examining these social media attributes, such as user reviews, product descriptions, visual content, 

and social endorsements. 

Through a comprehensive exploration of these dynamics, this study aims to provide valuable 

insights into the interplay between social media attributes and users' purchase decisions. 

Ultimately, the findings contribute to a deeper understanding of consumer behaviour in the realm 

of social commerce and provide actionable knowledge for businesses seeking to optimize their 

strategies in this rapidly evolving landscape. 

The study employed an experimental design to manipulate social media attributes to comprehend 

the study participants' choices. The consumption values theory and the random utility model 

guided the research. The consumption values theory enables the segmentation of user choices 

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XII 

 

based on their attached values. At the same time, the random utility model acknowledges that users 

have varying preferences for options and ultimately select the option that provides the most 

significant utility or satisfaction. 

The research focused on students, and simple random sampling was used to collect responses from 

a total of 304 students from the University of Ghana (UG) and the Ghana Institute of Management 

and Public Administration (GIMPA). The collected data was analysed using choice-based conjoint 

analysis and hierarchical Bayes estimation as the analytical techniques. 

Based on the study's findings, users tend to consider several factors when making purchase 

decisions on social media platforms, such as warranty terms, vendor attributes (such as a verified 

account), sponsored ad characteristics, and product attributes (such as the price). Additionally, the 

study revealed that these preferences vary based on users' demographics, including gender, age, 

and level of education. 

The study offers valuable implications across research, practice, and policy domains. In terms of 

research, it encourages further exploration of social media purchase decision-making using diverse 

perspectives, populations, theories, and methodologies. In practice, businesses on social media can 

optimize their strategies based on user preferences identified in the study, thereby increasing lead 

generation. From a policy perspective, implementing measures related to warranty, account 

verification, transparent pricing, and informative advertising can aid consumers in making well-

informed purchase decisions on social media platforms. 

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CHAPTER ONE 

INTRODUCTION 

1.1 Research Background 

The ubiquitous presence of social media platforms has brought about a profound transformation 

in various aspects of human life, permeating both personal and professional spheres (Kaul, 2012). 

It has altered the manner in which individuals interact, produce, and work with each other. Experts 

say social media has significantly influenced a company's information technology, leading to 

substantial changes in various aspects of their business operations. This includes transformations 

in marketing promotions and the establishment of trust-based relationships with customers. (Aral 

et al., 2013).  Due to the rapid advancement of social media and the incorporation of web 2.0 

technology, social commerce has emerged (Yahia, Al-Neama, & Kerbache, 2018a). Web 2.0 

describes the upcoming generation of internet-based tools, services, and programs. It enables users 

to engage in activities such as content creation, publication, sharing, trading, and reproduction of 

diverse information across various social media platforms. (Laudon & Traver, 2018; Turban, 

Bolloju, & Liang, 2010). Many individuals and businesses use it to create networks and social 

communities, exchange information, raise awareness, advertise, and transact business. Social 

media has evolved into a tool for broadcasting, approaching, and influencing various people and 

sharing user-generated content between companies and individuals (Alalwan, Rana, Dwivedi, & 

Algharabat, 2017).   

Yahoo first introduced social commerce in 2005 and has gained recognition globally (Han, Xu, & 

Chen, 2018). Social technology, interpersonal relationships, and commercial activities have been 

identified as the three key characteristics of social commerce. (Lu, Fan, & Zhou, 2016). Scholars 

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such as Hajli (2014), Huang and Benyoucef (2013) and Lu et al. (2016) view social commerce as 

a new stream and evolution of e-commerce where individuals can socially interact with others 

about their purchasing intentions. New designs and social features on social media platforms were 

made possible by advancements in Web 2.0 technology, allowing users to contribute their ideas 

through recommendations, ratings, and comments. As a result, the user experience was enhanced 

with rich, informative information, making the purchasing process more trustworthy (Lu et al., 

2016). 

Social commerce, involving buying and selling on social media platforms, is considered the 

upcoming wave of digital transformation (Gaurav & Suraj Ray, 2020; N. Hajli, 2015). Popular 

social media sites for social commerce include Facebook, Twitter, Instagram, LinkedIn, Pinterest, 

WeChat, and TikTok. The global social commerce market is expected to reach $1.2 trillion by 

2025 as many continue to make conscious efforts to understand and tap into the opportunities and 

the business prospects it brings (Lammertink, 2022). Social commerce sites create benefits for 

vendors, suppliers, and consumers (Mustafi, 2010). Vendors on social commerce sites can gather 

customer information, reach new audiences, personalize shopping experiences, and improve 

product quality because of the technologies embedded in social commerce sites. On the other hand, 

consumers also enjoy some benefits from using social commerce sites, such as informed decisions, 

better products, community support, and other benefits (A. Chen, Lu, & Gupta, 2017; Vikas Gupta, 

2019; Rambe & Jafeta, 2017). 

New sales channels have been made possible thanks to social commerce. As mentioned earlier, 

one aspect of social commerce involves businesses utilizing social media platforms for various 

business activities, including marketing and financial transactions (Turban et al., 2010). Businesses 

have recently tapped into the potential of social media platforms as virtual shops to market and 

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sell their goods, especially recently established ones. These platforms, such as Facebook and 

Twitter, already enjoy a massive user base, allowing businesses to tap into a vast audience and 

leverage the popularity and accessibility of these platforms for marketing and sales purposes 

(Adamopoulos & Todri, 2015). Customers who submitted favourable evaluations about their 

brands, products, and services and then shared and linked to them on other social media sites 

helped businesses improve their sales  (Enginkaya & Yılmaz, 2014; Kang & Park, 2009). 

Another corporate benefit from social commerce is improved customer service (Stephen & Toubia, 

2010). Having a company presence on social media has improved customer service. Through 

social commerce, businesses can markedly enhance their customer relationships by improving the 

speed, volume, and accessibility of customer interactions. (Chung, Pinsonneault, Animesh, & Han, 

2015; Culnan, McHugh, & Zubillaga, 2010). The tools social media platforms provide have 

allowed businesses to communicate directly with their customers in various ways, such as 

answering questions and getting comments (Kaplan & Haenlein, 2010). 

Improved brand image is also a commercial advantage derived through social commerce. With 

social media users growing annually, companies have been searching for innovative ways to 

interact and engage with their consumers to improve their brand image (Adamopoulos & Todri, 

2015; Wu, Shen, & Chang, 2015). Setting up a company profile on Facebook and Twitter, posting 

advertisements on YouTube, sharing photos on Instagram, and including information about the 

company on Wikipedia have all been linked to higher traffic and improved business results (Chung 

et al., 2015). 

In recent years, many businesses on social media platforms like Facebook, Twitter, LinkedIn, and 

Instagram have utilized its commerce features, such as paid digital ads, to reach their potential 

consumers (Maslowska, Ohme, & Segijn, 2021). Facebook is the most popular social media site, 

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with about 2.89 billion monthly active users (Statista, 2021). Facebook users are exposed to 

approximately 70 classified ads weekly from various advertisers (Maslowska et al., 2021).  

Users are confronted daily with a plethora of ads that primarily influence their purchasing 

decisions. As a result, they look for specific characteristics of ads which support users in making 

decisions by perusing them with innovative features, attention-grabbing elements, emotional 

appeal, and celebrity endorsement (Sriram, Namitha, & Kamath, 2021). However, users may face 

social commerce risks, such as scams or misleading offers, if they click on the wrong ad. Ashoer 

and Said (2016) identified seven risks social commerce users are likely to face. The hazards 

associated with social commerce include those related to money, time, social interaction, products, 

delivery, security and privacy, and after-sale support. Social media users, conscious of the fact that 

the use of social media for trading exposes them to all sorts of risks, rely on some attributes social 

media platforms provide to decide whether to make a purchase (Kwahk & Kim, 2017). 

Despite the risks social media users are sometimes exposed to, social media plays a vital role in 

users' decision-making process (Power & Phillips-Wren, 2011). Social media can influence 

various decisions that people make, such as purchase decisions, educational decisions, career 

decisions, social decisions, political decisions, health decisions, and travel decisions (Afful-Dadzie 

& Afful-Dadzie, 2021; Galan, Lawley, & Clements, 2015; Lautiainen, 2015; Lăzăroiu, Neguriţă, 

Grecu, Grecu, & Mitran, 2020; Mariani, Ek Styven, & Ayeh, 2019; Power & Phillips-Wren, 

2011b; Rizki & Nindyta, 2017). Social media can significantly impact people’s decisions across a 

wide range of areas, highlighting the need to evaluate social media attributes and their role in 

decision-making critically. 

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This study provides valuable insights into what influences the purchase decision-making process 

of users by exploring social media attributes they look out for and trade-off when making a 

purchasing decision. 

1.2 Research Problem 

Numerous research studies have been undertaken to investigate, analyze, and comprehend the 

multifaceted dimensions of social media (specifically social commerce) and its impact on users’ 

purchasing decisions (Cao et al., 2020; A. Chen et al., 2017; Enginkaya & Yılmaz, 2014; N. Hajli 

et al., 2017a; Huang & Benyoucef, 2013, 2017; Lee, 2013; Maia et al., 2018; Owusu et al., 2022; 

Riaz et al., 2021; Sohn & Kim, 2020; Yahia et al., 2018a; Lim, 2020; Yogesh & Yesha, 2014). For 

instance, Huang and Benyoucef (2017) studied the effect of social commerce design on the 

purchasing behaviour of consumers. They identified various factors of social commerce design 

(usability, functionality, and sociability) and stages of consumers’ decision process awareness, 

information search, evaluation, purchase, and post-purchases. The study's findings revealed that 

any social commerce website must achieve a minimum set of social commerce design features 

because social commerce design influences consumers at every stage of their decision-making 

process. In other words, a set of design requirements affects customers at each level of the decision-

making process.  

From the users’ perspective, Mao and Zhang (2015) studied what motivates social media users to 

respond to ads on social media. After highlighting the various forms of social media ads, they 

proposed that ad-clicking behaviour is influenced by three broad aspects: ad content, media 

context, and individual factors. The results revealed that customers are more likely to click on 

social media display ads when they perceive them as helpful, reliable sources of information about 

products and services, yet entertaining. Lastly, when considering users’ characteristics, those 

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driven by engaging and consuming motivations are more inclined to click on social media ads. 

However, if users are motivated by connection motivation, they are less likely to pay attention to 

ads and click on them.  

Yahia et al. (2018) conducted a study to explore the perceived characteristics of the social 

commerce vendor and investigated their influence on users’ trust. Using the Unified Technology 

Acceptance and Use of Technology Model 2, the authors tested the influence of trust and the 

platform’s perceived usage. According to the findings, reputation and price advantage impact trust 

most, though habits mitigate these effects. Contrary to popular belief, social interactions with the 

social commerce vendor reduce trust, and product differentiation, on the other hand, undermines 

trust.  

Hajli et al. (2017) investigated the role of trust in a social networking site on purchase intentions. 

In order to explain this association, researchers looked at the connection between purchase 

intentions and trust in social commerce. They presented three models by combining three ideas—

social commerce information seeking, platform familiarity, and social presence. The models 

demonstrated how trust, familiarity, social presence, and social commerce information-seeking 

influence behavioural intentions on social commerce platforms. Results from a poll of Facebook 

users show that confidence in social networking sites (SNS) enhances information seeking, 

increasing platform familiarity and a feeling of social presence. The possibility of making a 

purchase is also increased by familiarity and social presence. 

Accordingly, Sohn and Kim (2020) conducted a study to explore the attributes of social commerce 

and their impact on purchase intentions. The study employed factor and multiple regression 

analyses to classify social commerce attributes and determine their effect on purchase intentions. 

The results revealed that five attributes - economy, necessity, reliability, interaction, and sales 

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promotion –can be used to classify social commerce. Furthermore, economy, necessity, reliability, 

and sales promotion were shown to have a significant effect on purchase intentions. 

Although each of these researchers has made a significant contribution to IS research concerning 

social media, there are still some gaps worth exploring, such as: 

 

I. Theory Gap: Several of the studies conducted in the social media space used various 

relevant theories (Theory of Planned Behaviour, Technology Acceptance Model (TAM), 

The Associative Network Theories of Memory (ANT), Social Learning Theory, and 

Unified Theory Acceptance and Use of Technology (UTAUT2)) to explain, explore, and 

understand how social media influences the purchase decision-making process of users 

(Akar & Dalgic, 2018; Lin & Kim, 2016; McClure & Seock, 2020; Riaz et al., 2021; Sin 

et al., 2012; Wajahat et al., 2019; Wang et al., 2012). Users make purchase decisions based 

on some values they attach to the features or attributes the platforms provide. Hence, this 

study uses the Consumption Values Theory and the Random Utility Model to explore the 

purchase decision-making of social media users. 

II. Context Gap: The majority of the studies conducted in the sub-region regarding social 

media focused on the use of social media and its impact on child behaviour, academic 

performance, and elections (Apeanti & Danso, 2013; Bernard & Dzandza, 2018; Bruce et 

al., 2022; Dzisah, 2018; Karikari, Osei-Frimpong, & Owusu-Frimpong, 2017; Serwaa & 

Dadzie, 2015). This study explores how users make purchase decisions, primarily focusing 

on students. 

  

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1.3 Research Purpose 

Following the identified research problem and gaps outlined, this study aims to understand how 

social media users evaluate social media platforms to make purchase decisions based on social 

media attributes such as product, vendor, terms and conditions, and ad characteristics. 

1.4 Research Objectives 

The objectives of the study include:  

1. To model and validate a choice framework on how users make purchasing decision on 

social media. 

2. To understand social media attributes users prioritize and trade off when making 

purchasing decisions. 

3. To ascertain the differences in preference across selected demographic profiles. 

1.5 Research Questions 

The questions the study intends to address include; 

1. What choice framework can show how users make purchasing decision on social media? 

2. What social media attributes do users prioritize and trade-off when purchasing decisions? 

3. What are the differences in preference across selected demographic profiles? 

1.6 Research Significance 

This study aims to understand how social media users decide whether ads meet their own criteria 

based on the seller's characteristics, the product's characteristics, the terms and conditions, 

celebrity endorsements, etc. 

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This study adds to the several studies conducted on social commerce by focusing on users of social 

commerce. The study also contributes to knowledge by understanding the various social commerce 

attributes that motivate users to transact business on the platform and attributes users see as red 

flags. 

Lastly, the study provided valuable information for policymakers, developers, and users of social 

commerce platforms to make informed decisions when using social commerce platforms, setting 

standards, and developing social commerce platforms. 

1.7 Organisation of the Study 

Following the introduction, the rest of the study is structured as follows.  

Chapter Two reviewed relevant literature on social media, social media business, social media 

advertisements, social media users, attributes of social media ads, and finally, the behaviour of 

social media users towards social media ads. This chapter highlighted the various studies 

conducted in the social media space and helped identify critical knowledge gaps.  

Chapter Three provided an in-depth examination of the theoretical framework employed in this 

study. It delves into the historical development of the framework, tracing its origins and evolution. 

Furthermore, it elucidates the fundamental principles and key concepts that underpin the theory, 

offering a comprehensive understanding of its core elements. This chapter establishes a solid 

foundation for the subsequent analysis and interpretation of the study's findings by exploring the 

theoretical framework's historical background and essential components.  

Chapter Four discussed the methodology adopted for the study to help find answers to the listed 

research questions driving this study. This chapter also discusses the positivist paradigm and why 

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it is appropriate for the study. The chapter further discusses the sampling method, sample size, 

data collection method and instrument, and finally, the data analysis method.  

Chapter Five of the study presents the findings by providing an in-depth exploration and analysis 

of the data collected, shedding light on the key insights obtained through the research process. This 

chapter acts as the bridge between the research objectives and the empirical results, providing a 

clear and detailed account of what was uncovered during the study. 

Chapter Six presented a comprehensive analysis of the research findings. This analysis delved into 

how the research outcomes directly addressed the research questions, effectively connecting theory 

with the empirical data. By offering this synthesis of findings, theoretical foundations, and 

directions for further investigation, Chapter Six added depth and insight to the study’s overarching 

purpose. 

Lastly,  chapter seven of the study provided a summary, implications, limitations, and conclusion 

of the entire study. Additionally, the chapter included a matrix table that effectively mapped the 

research objectives, key findings, contributions, implications, and recommendations. This table 

offered a clear and concise overview of how the study’s components were interconnected, 

enhancing the reader’s understanding of the research's holistic framework.

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CHAPTER TWO 

LITERATURE REVIEW 

1.8 Introduction 

The previous chapter gave a background into social media and social media advertising. It also 

discussed the research problem, objectives, and questions driving this study. This chapter reviewed 

relevant literature pertaining to social media, social media users, social media advertising, and 

decision-making on social media.  

1.9 Social Media 

The internet and social media have become indispensable aspects of our daily lives in the twenty-

first century. These platforms have broadened educational and entertainment horizons and 

captured the interest of entrepreneurial individuals and businesses. Millions of people conduct 

business through social media platforms. Despite its widespread popularity, there is no formal, 

concise, and universally accepted definition of social media (Carr & Hayes, 2015).  

As per the definition provided by Merriam-Webster, social media refers to an electronic 

communication method like social networking sites and blogs that promote the formation of virtual 

communities, allowing users to share information, thoughts, personal messages, and a wide range 

of content, including videos. Constantinides and Fountain (2008) use the term social media as a 

synonym for “Web 2.0”, claiming that Web 2.0 and social media are terms that can be used 

interchangeably. Similarly, Cox et al. (2009) use the term “Web 2.0 websites” in parallel with the 

term “user-generated content websites” to describe blogs, wikis, podcasts, and social networks as 

“key types of Web 2.0 user-generated content sites”. 

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On the contrary, Kaplan and Haenlein (2010) suggest that the two terms are different: They define 

social media as a group of web-based programs that support the production and sharing of User 

Generated Content and are based on the ideologies of Web 2.0. 

1.10 Social Media vs. Social Networks 

Social networking and social media are intertwined. Although both are methods of disseminating 

information, social media is distinct from social networking. According to Merriam-Webster, 

social media are electronic communication methods (such as social networking websites and 

blogging platforms) that allow users to establish online communities for sharing information, 

ideas, personal messages, and various types of content, including videos. Again, according to 

Merriam-Webster, networking is the process of sharing information or services among individuals, 

groups, or organisations, specifically emphasising nurturing beneficial relationships for 

employment and business purposes. 

There are several distinctions between social media and social networks (Hartshorn, 2010). Social 

Media can be defined as a strategy and a broadcasting outlet, whereas Social Networking is a tool 

and a utility for connecting with others (Cohen, 2009). Jansen et al. (2009) use the terms “Social 

communication platforms” and “Social communication services” as umbrella terms for social 

networks, virtual reality, and online communities such as Wikipedia, YouTube, and Flick. Social 

networking is an act of engagement as people with common interests associate together and forge 

relationships through community, whereas social media is still a medium primarily used to 

transmit or share information with a broad audience (Cohen, 2009; Hartshorn, 2010). 

In addition to being a platform for businesses and individuals to share user-generated content, 

social media has evolved into a tool for connecting with and influencing a variety of people 

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(Alalwan et al., 2017). Individuals with the same interests, attitudes, or interpersonal connections 

use social networks, which are services, applications, platforms, or electronic websites (Alalwan 

et al., 2017).  

Social networking is the use of social media to interact with others in person and establish a 

genuine connection with them. Social networking websites enable people to communicate, share 

information, and form new relationships. As we adjust to our increasingly technological world, 

social interaction is impacted in numerous ways as the popularity of social networking websites 

rises. Internet communication and interaction between users has changed and is still changing. 

These users now interact socially online, diminishing the value of traditional social interaction 

(Asur & Huberman, 2010). 

Between 2004 and 2006, social networking saw a surge in popularity thanks to the creation of 

Facebook and MySpace. Millions of users worldwide have flocked to social networking sites, 

which have rapidly developed and become a part of their daily lives (Li & Bernoff, 2008). Every 

year, a slew of new social networking sites emerge. Some are used for social and recreational 

purposes, while others are used for professional purposes (Edosomwan, Prakasan, Kouame, 

Watson, & Seymour, 2011). For example, Facebook, WhatsApp, Twitter, and Snapchat have 

billions of followers (Statista, 2021). LinkedIn, on the other hand, was created for a more 

professional audience. It enabled business professionals to create profiles and connect with other 

professionals, resulting in a network of linked professionals (Dach, 2015; Edwards, Stoll, Faculak, 

& Karman, 2015). 

  

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1.11 Evolution of Social Networks 

David Bohnett and John Rezner created the first social network, Geocities, in 1994. Geocities 

allow users to create and customize their websites by categorizing them as “cities” based on the 

site’s content (Brügger, Goggin, Milligan, & Schafer, 2017). Instant messaging services such as 

SixDegrees.com and AOL Instant Messenger became available in 1997, allowing users to chat 

with friends and create profiles freely. The precursor to today’s social networking websites was 

AOL. Users could search for other members and share information about themselves in their 

membership profiles (Guru, Motaghem, Kumar, & Devanoor, 2016). 

Many social networking websites emerged in the 1990s. Some examples include Six Degrees, 

BlackPlanet, Asian Avenue, and MoveOn. These sites allowed people to interact, such as public 

policy advocacy sites and a social network based on a web of contacts model. Additionally, 

websites for blogging were created, including Blogger and Epinions. Epinions’s website allows 

users to read or post product reviews (Edosomwan et al., 2011). 

In the 1990s, two software programs were developed: ThirdVoice and Napster, which are no 

longer available. Users could leave comments on websites using the free plug-in ThirdVoice.  

The proliferation of various social networking platforms in 2000 significantly amplified the 

widespread adoption of social media. The interaction of people and organizations with similar 

interests in music, education, movies, and friendship was significantly boosted and transformed as 

a result, thanks to social networking. Wikipedia, Six Degrees, Cyworld, and LunarStorm were 

among the sites that were launched. Fotolog, Sky Blog, and Friendster were launched in 2001. 

MySpace, LinkedIn, LastFM, tribe.net, Hi5, and others were launched in 2003 after Fotolog, Sky 

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Blog, and Friendster in 2001. 2004 saw the birth of well-known names such as Facebook Harvard, 

Dogster, and Mixi (Junco, Heiberger, & Loken, 2011). 

Most popular social networks facilitate user connections with friends from different countries and 

offer multilingual support. They provide a platform for users to discuss important topics, share 

various forms of content like text, videos, and photos, and exchange opinions and experiences 

(Tsay-Vogel, 2016). 

1.12 Reasons for Using Social Networking Sites 

One prevalent misperception regarding social media is that it is used to form online interactions 

with other people. Social networking allows you to connect with groups of individuals who share 

common interests and stay in touch with family and friends. Reasons why people utilize social 

media have been the subject of theoretical research. Hallikainen (2015) introduced a value-based 

approach to social media use to understand better why individuals use social media sites. The 

findings demonstrated that social rewards and social capital—both of which come from 

interactions with others—are essential drivers of social media use. 

Matikainen (2015) also looked into the motivations behind users who post their content on social 

media platforms. This study found three factors that encourage social media use: (3) community—

people want to be a part of online groups and interact with one another; (4) self-expression—

people, especially young people, want to act independently and freely on the Web and share 

information about their lives; and (5) desire to be a part of the Internet and develop oneself 

accordingly (p. 41). The author concluded that the chosen platform may impact the user’s 

motivation. 

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Whiting and Williams (2013) discovered through qualitative research that people utilize social 

media for a variety of reasons. The most common reason for using social media is to interact with 

others, but users also use it for information searching, entertainment, relaxation, and expressing 

opinions. Additionally, they found that social media users may find it helpful as a tool for 

monitoring and staying informed about the activities of others. 

1.13 Social Networking Sites 

This session discusses social networking sites used for marketing purposes and their impact on 

consumer behaviour. Social networking sites (SNS), or “social network sites”, are the most 

widespread types of social media, and their popularity continues to increase worldwide (Belanche, 

Casalo, Flavian, & Guinaliu, 2010; Richter & Koch, 2008). Social networking sites enable internet 

users to communicate, share information, have fun, and focus on topics and events of their 

interests.  Facebook, Twitter, Instagram, and LinkedIn are typical examples of SNS. 

These network sites enable people to create personal profiles, connect with friends and colleagues, 

and view each other’s profiles. These engaging social media profiles contain a wealth of content, 

from insightful blogs to captivating videos and pictures, providing users with a diverse and 

informative experience. (Boyd & Ellison, 2007; Kaplan & Haenlein, 2010).   

Each social networking site is dynamic; thus, the different platforms offer essential features crucial 

to user decision-making. Below is a breakdown of the different types of social networking sites 

and their distinctive characteristics. 

1.14 Facebook  

Facebook, a private website for social networking, was introduced in February 2004 and is 

operated by Facebook, Inc. (Facebook, 2004). When the website started, Harvard students were 

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the only ones who could access it. While Mark Zuckerberg was a Harvard undergraduate, he and 

other individuals founded Facebook. Subsequently, high school students and individuals aged 13 

and above were granted the same privilege (Boyd & Ellison, 2007). 

With 271 million active members, Facebook is the most widely used social media site in 2021, 

according to Statista (2021). Users can connect and share information and photographs on 

Facebook. Users can build a personal profile, add other users as friends, and exchange messages, 

including automated notifications, images, and comments when they update their profile. 

Facebook users can join groups with shared interests organized by workplaces, institutions of 

higher learning, or other criteria. Facebook is a social media platform that allows businesses to 

advertise, allowing customers to engage with the brand and the advertisement on their home page. 

Facebook is a useful tool for enhancing the reputation of a variety of products and services 

(Dehghani & Tumer, 2015). 

1.15 Instagram 

According to Statista (2019), Instagram has one billion active users and is owned by Facebook. 

Sheldon and Bryant (2016) describe Instagram as a social media platform where users can upload 

and share pictures and interact by liking and commenting on other photos. According to Voorveld, 

van Noort, Muntinga, and Bronner (2018), Instagram stands out as one of the most widely utilized 

social media platforms among consumers during their leisure, with the additional observation that 

Instagram advertising offers a more engaging and entertaining experience compared to other 

platforms. According to Djafarova and Trofimenko (2019), companies use Instagram for 

marketing to reach a larger audience. 

  

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1.16 Twitter 

Dorsey, Williams, Stone, and Glass founded Twitter in 2006 (Icha & Agwu, 2015). Twitter is a 

microblogging and social networking service that allows users to send and read short text messages 

known as tweets. In January 2019, Twitter had 326 million active users (Statista 2019). Icha and 

Agwu (2015) pointed out that Twitter permits users to retweet, favourite, or respond to original 

tweets, enabling companies to gain insights into their customers’ purchasing behaviours. 

Additionally, they noted that companies have the option to purchase advertising space on 

individuals’ timelines. Twitter became popular due to its diverse features, including microblogging 

and celebrity endorsement. Twitter has been rebranded as “X” under the ownership of Elon Musk 

(“Elon Musk Completes $44 Billion Deal to Own Twitter - The New York Times,” n.d.), and 

Linda Yaccarino as the new CEO (“Twitter’s New CEO Linda Yaccarino Has First Day at Work 

After Musk’s Appointment - Bloomberg,” n.d.) 

1.17 LinkedIn 

Launched in 2003, LinkedIn is a social network for professionals with more than 300 million users 

worldwide (Novet, 2015). Through networking opportunities, job postings, news, and industry-

specific insights, LinkedIn aims to help career professionals excel. According to a Pingdom Royal 

study conducted in 2012, LinkedIn is the world’s largest professional network, with over 300 

million members in over 200 countries, mainly serving an older audience. LinkedIn serves as a 

central platform for job seekers while offering a range of services customized for younger users 

exploring their interests. (Dach, 2015). 

  

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1.18 Advertising on Social Media 

Social media advertising presents a novel dimension to the field of advertising by providing users 

with interactive experiences, particularly on Facebook, which stands as the prevailing social media 

platform (Logan, Bright, & Gangadharbatla, 2021). Facebook advertising enables users to actively 

interact with ads on their page by allowing them to ‘like’ and ‘share’ ads and see which friends or 

others have also engaged with the same ads. These features highlight that social media connects 

like-minded individuals and promotes collective engagement and sharing of views. Establishing 

connections between online users or customers and their social relationship graphs is increasingly 

considered highly valuable for predicting customer responses to online marketing strategies and 

messages. This value remains true despite the numerous benefits of social media advertising.  

The effectiveness of advertising is closely linked to its credibility, as customers’ perceptions of 

reliability and overall message credibility are becoming significant considerations. These 

perceptions about social media advertisement stem from consumers perceiving certain 

advertisements as more trustworthy than others. From the perspective of certain research studies, 

social media can serve as a mechanism to assess the credibility of initiators who promote brands. 

In accord with the findings of Lee (2013), consumers view consumer-generated messages on social 

media as being motivated by altruism than marketer-generated messages.  

Furthermore, Enginkaya and Yılmaz (2014) examined the factors that motivate customers to 

engage in product referral actions on social media. The findings revealed that customers readily 

accept products or brands recommended by fellow consumers, as opposed to those recommended 

by the manufacturer or marketing agencies (Chatterjee, 2011). According to the findings of 

Voorveld et al. (2018), the environment that fosters user engagement in endorsing product brands 

varies depending on the specific social media platform being studied.  

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Researchers developed categorizations to assess the level of customer engagement. Through these 

categorizations, it was observed that customers who utilize social media platforms actively 

contribute to shaping the brand image of a product by expressing their approval or sharing ideas 

associated with the product online. These activities of social media users highlight the constructive 

impact of social media activity in relation to a specific organization's products. 

Calder, Malthouse, and Schaedel (2009) support the notion that social media advertising 

encourages diverse forms of user engagement online. They present evidence indicating that 

customers who utilize various social media platforms demonstrate interactive behaviours, which 

facilitate communication. 

This study builds upon previous research (Maia et al., 2018; Rahman, Kim, Noh, & Lee, 2020; 

Shimp & Bearden, 1982; Wongkitrungrueng & Assarut, 2020; Yakimin Abdul Talib & Hanim 

Rusly, 2015) aimed at understanding how social media users make purchase decisions influenced 

by the attributes of the social media platforms they engage with. In doing so, it identifies common 

social media attributes and sub-attributes that span various social media platforms to gain insights 

into how users make purchase decisions in this context. 

The social media attributes and sub-attributes gleaned from literature include vendor attributes 

(influence characteristics, location, and verified account), product attributes (brand and price), 

terms and conditions (warranty and no warranty), and lastly, ad Characteristics (sponsored, 

organic, and celebrity endorsement). Detailed explanations of these attributes and sub-attributes 

can be found in Table 2.0.1. 

  

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Table 2.0.1: Definitions of Social Media Attributes & Sub-attributes 

Attribute Definition Reference 

Vendor A vendor is an individual or entity that sells 

goods or services to another party within the 

economic production chain. The vendor attribute 

has three main sub-attributes: influence 

characteristics (number of posts, likes, and 

followers), location, and verified account. 

The sub-attribute influence characteristics entail 

the number of posts, likes and followers the 

vendor has to their credit.  

Posts are regular updates vendors share about a 

product to advertise the product and also attract 

potential customers or buyers. 

Likes on social media are ways users approve a 

content or vendor's post. 

A Follower on social media is a user who 

subscribes to a vendor's ideologies. 

Location is another sub-attribute of a vendor 

indicating where the physical shop or store is. 

A verified account is one of the critical sub-

attributes of a vendor that shows that a social 

media account has been validated using the 

user's original documents (National ID card, 

drivers’ license, passport, etc.). 

(Aydin, 2020; Hajli, 

2014; Handarkho, 2020; 

Tafesse & Wien, 2017; 

Yahia et al., 2018b)  

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Attribute Definition Reference 

Product A product is an item (e.g., mobile phone, 

laptop, television, etc.) a vendor advertises for 

consumers to patronise.  

The selected sub-attributes of a product are 

brand and price.  

A brand is a name or trademark distinguishing a 

product from similar products. 

Price is the amount of money required for the 

payment of a product. 

(Ardiansyah & 

Sarwoko, 2020; Gupta 

et al., 2014; Roselius, 

1971; Schultz, 2017) 

Terms & Condition Terms and conditions are the rules and 

guidelines for buying a product on social media. 

The selected sub-attributes are warranty and no 

warranty. 

A warranty is a written guarantee promising a 

repair or replacement of a purchased product 

within a specific time. 

No warranty means no repair or replacement of 

a purchased product. 

(Alalwan, 2018a; 

Roselius, 1971; Shimp 

& Bearden, 1982) 

Ad Characteristics Ad characteristics enhance the effectiveness of 

social media advertising in terms of visibility 

and reach. 

The selected sub-attributes of ad characteristics 

are sponsored, organic, and celebrity 

endorsement. 

(Alalwan, 2018b; 

Gayathri & Anwar, 

2019; Gross & von 

Wangenheim, 2022; Jin 

et al., 2019; Dash & 

Piyushkant, 2020; Seiler 

& Kucza, 2017; Sriram 

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Attribute Definition Reference 

Sponsored ads are social media adverts that 

have been paid for to boost their effectiveness 

in terms of reach and visibility. 

Organic ads are free social media adverts and 

are only seen by the followers of a vendor 

sharing them. 

Celebrity endorsement is the use of famous 

personalities or celebrities who command a 

high degree of recognition to advertise a 

product, influencing buyers positively. 

et al., 2021; Stubb & 

Colliander, 2019) 

 

 

1.19 Purchasing Decision 

Consumers’ online engagement on social media platforms has been identified based on their online 

behaviour. In the present day, consumers utilize the Internet as a means to accomplish their 

objectives. Their incentive could be related to old friends, companies, or reviews to help them 

make a purchasing decision. The cognitive process that causes an individual to select a specific 

product and brand is often referred to as a purchasing decision (Lăzăroiu et al., 2020). A key 

business component of social media is its ability to influence consumers' purchasing decisions.  

According to studies investigating the interplay between social media, consumer decision-making, 

and the impact on attitudes towards advertising, brands, and purchasing intentions, social media 

has been revealed to influence these aspects (Yang, 2012). Through status updates and Twitter 

feeds, consumers can make a purchase decision, assess products, recommend to contacts or 

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acquaintances, and link current and future purchases. Additionally, social media usage offers 

businesses a useful tool in the form of customer referrals, in which a satisfied consumer suggests 

that product (item or service) to other potential customers (Maia et al., 2018). 

1.20 Demographic Factors That Influence Purchase Decision-Making on Social Media 

The influence of psychological and socio-demographic variables on customers’ purchasing 

behaviour has received scholarly attention from researchers (Durmaz, 2014; Lichev et al., 2017; 

Ostrovskiy, Garkavenko, & Rybina, 2021) because they play an important role in purchasing 

decisions. 

According to Rani (2014), consumers possess distinct personal attributes, including psychological 

and sociodemographic characteristics such as age, annual income, economic situation, occupation, 

or personal lifestyle. These factors play a substantial role in shaping consumer purchasing 

behaviour. These characteristics contribute to the distinctiveness of an individual, shaping their 

perception of the world and influencing their decision-making processes, including the act of 

making a purchase. Yakup and Jablonsk (2012) also emphasise the need to consider the 

consumer’s traits because each consumer is unique in terms of personal characteristics and nature. 

Scholarly research on demographic parameters influencing purchase decision-making on social 

media has highlighted age as a key component in individuals’ decision-making. Summers, Belleau, 

and Xu (2006) discovered that the increasing age of Malaysian customers reduces the effect of age 

on purchasing intention. As a result, consumers aged 17-21 are more likely to influence purchasing 

intentions. Moreover, studies have also shown that some participants perceived their age-related 

attributes as influential factors in their decision-making process regarding the purchase of leather 

garments. 

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A study by Daneshvary and Schower (2000) discovered that demographic characteristics, 

particularly age, significantly influence the intention to purchase. Based on previous research, 

younger consumers exhibit a more substantial impact on their purchasing intentions. This assertion 

could be attributed to the fact that younger consumers tend to be more open to novel experiences 

and less focused on price concerns.  

Lim, Mohd Radzol, Cheah, and Wong (2017) and Shanmugam, Sun, Amidi, Khani, and Khani 

(2016 discovered that consumer gender influences their purchasing intention. Lim et al. (2017) 

discovered that a consumer’s gender influences their purchase intention by moderating their 

income level. Male and female attitudes towards purchase intention differ significantly, according 

to Jain and Sharma (2012). The authors affirmed that gender influences purchase intentions for 

many fast-moving consumer products.  However, Khan et al. (2012) discovered that both men and 

women showed equivalent brand knowledge and purchasing intent. There is no significant 

difference between male and female purchase intentions. Female customers have slightly higher 

behavioural intentions concerning the product than male customers.  

Educational level is another key component in individuals’ decision-making. Previous research 

found that education level significantly influenced customer attitudes towards purchasing organic 

foods. According to Storstad and Bjorkhaug (2003), bio-food consumers are more knowledgeable 

than non-organic customers. 

According to Omar et al. (2016), Malaysians’ intentions to buy organic foods are significantly 

influenced by their level of education or consumer awareness. Kumar and Kumar (2019) 

discovered that less informed customers were definitely in agreement with receiving guidance, 

whereas others were partly in agreement. It was also discovered that educated consumers were 

more aware of the importance of buying durable goods and making their own purchasing decisions.  

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1.21 Factors That Influence Purchasing Decisions on Social Media 

Through online social networks, especially Facebook, Leerapong and Mardjo (2013) explored the 

variables affecting their online purchasing decisions. In terms of influencing customer purchase 

behaviour on Facebook, customers ranked relative benefit, trust, perceived risk, and compatibility 

as the primary factors that either motivated or discouraged them from making a purchase. The 

presence of positive or negative information about a product or brand on social media platforms 

significantly influences customers’ overall purchase behaviours (Sharma & Rehman, 2012).   

In their study, Pantano et al. (2021) looked at the extent to which social media sites like Facebook 

influenced customer purchase decisions. They discovered that enjoyment is an essential 

component of social network usage as a tool to support purchasing decisions. They also reveal a 

casually positive link between client attitudes about social media and behavioural intention. 

According to Oliveira et al. (2017), the sources of customer trust influence factors like the online 

retailer’s knowledge, integrity, and friendliness, all of which impact the end user’s overall trust 

and consequently affect their desire to make an online purchase. The lack of direct contact 

facilitates online buying behaviour in a variety of ways, exhibiting various crucial intentions. 

Consumers’ trust in Internet retailers influences their online purchasing intent. The consumers’ 

level of trust ultimately impacts their level of intent in terms of searching for and purchasing things 

from online businesses, as well as speaking positively of them to other end users (Cherrett et al., 

2017). 

By disseminating health information on news and social media, a study by Lehmann, Ruiter, and 

Kok (2013) looked at how social media influences a person’s decision-making. The review 

investigated how social media and mainstream outlets in the Netherlands covered influenza 

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vaccination. In contrast to traditional media, individuals exhibit a higher tendency to engage with 

news and respond to it on social media platforms. Given its allure and the influence of the Internet 

on people’s choices, social media can serve as a vital source of health-related information.  

Cherrett et al. (2017) argue that the absence of face-to-face interaction plays a significant role in 

shaping online purchasing behaviour, manifesting through a multitude of important intentions. 

Consumers' trust in Internet retailers influences their online purchasing intent. The consumers’ 

level of trust ultimately impacts their level of intent in terms of searching for and purchasing things 

from online businesses, as well as speaking positively of them to other end users. 

Zhang and Curley (2017) assert that customers’ trust in an online recommender agent and 

willingness to accept its recommendations are greatly affected by the explanation technique, 

availability, and perceived personalization. End users’ perceived personalization of the online 

recommender agent enhances the influence of both its availability and the way it explains end 

users’ trust perceptions. This, in turn, mediates the effects on their intention to use the service. 

1.22 Influence of Social Media on Purchasing Decisions  

Social media can influence how people choose which services or products to buy. Quality, brand, 

advertising, and pricing all have the potential to affect consumer decisions.  As evidenced by the 

relationship between social media and consumer decision-making, social media has an impact on 

consumer attitudes toward advertising, brands, and purchasing intentions. It may have a mediating 

effect instead of necessarily influencing consumer decisions (Yang, 2012).  

Commercial advertising on social media influences both consumer brand sentiments and 

purchasing intentions (Yang, 2012).  Social media has the power to shape brand impressions and, 

ultimately, consumer behaviour. The reputation of the brand or product may have an impact on 

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the consumer’s choice to buy. Social media friends of customers who post or advocate goods or 

services have an impact on their perception of the company and their purchasing behaviour.  

Social media is a standard tool used by marketers in their promotional campaigns. This makes it 

easy for customers to get in touch with them, and it gives them a low-cost means to market and 

sell their products (Sema, 2013).  

Beyond advertising, social media serves as a platform for businesses to connect with their 

customers. Managing responses to comments or reactions on social media can be challenging. 

However, the way companies handle these interactions can leave lasting brand impressions and 

influence more people to purchase their products or services. When a consumer is making a 

product-related decision, every single detail can influence their decision-making process (Sema, 

2013).   

Consumer motivations for using social media provide insights into consumer behaviour. 

Consumers’ primary motivations for using the Internet as a medium are information, 

entertainment, and social features (Heinonen, 2011). 

1.23 Chapter Summary 

The primary purpose of this chapter is to shed light on social media, social commerce, and 

decision-making on such platforms. In summary, this chapter provides an overview of relevant 

literature on social media, its uses, impact, and evolution over the years. The chapter further 

provides an in-depth review of the impact of social media on decision-making, definitions of the 

selected social media attributes, and lastly, attributes of social media that influence purchase 

decisions. 

 

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CHAPTER THREE 

THEORETICAL FOUNDATION 

1.1 Introduction  

The previous chapter delved into relevant literature regarding previous studies on social media use 

and its influence on users’ purchase decision-making process. This present research is grounded 

on the Consumption Values Theory (CVT) and the Random Utility Model (RUM). This chapter 

briefly introduces the consumption values theory and the random utility model and their 

application to uncover the purchase decision-making process of social media users. 

1.2 Evolution of the Consumption Values Theory 

The Howard-Sheth Model is a strategy for classifying logically the interactions between social, 

psychological, and marketing variables that influence consumer and industrial customer 

purchasing behaviour or preferences (Farley & Ring, 1970). The Howard-Sheth model is one of 

several models that depict market customer behaviour. It clarifies why consumers purchase items 

with limited information and cognitive capacity. It explores how non-obvious behaviours, 

reactions, and thinking processes manifest themselves on the outside (Reddipalli, 2020). 

John Howard and Jagadish Sheth presented the Howard-Sheth Model in 1969 through their 

publication, "The Theory of Buyer Behaviour." This model outlines the three key phases involved 

in a buyer's decision-making process when choosing a specific brand. For a novice buyer entering 

the market, the initial phase of the decision-making process involves an extensive problem-solving 

stage. Being unfamiliar with the available brands and lacking any specific product or service 

preference, such a consumer assumes the role of an information seeker who evaluates multiple 

brands in the market before reaching a purchase decision (Burucuoglu & Erdogan, 2016).  

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The limited problem-solving stage is the buyer's decision's second step. At this level, the buyer 

knows little or nothing about the product, market, or brands that operate in it. The various 

alternatives can be perplexing for the buyer at times. Consequently, before reaching a purchasing 

decision, the individual conducts comparative research on the diverse brands and commodities 

offered within the market (Sheth, Newman, & Gross, 1991).  

The penultimate stage, known as habitual response behaviour, occurs when the customer possesses 

comprehensive knowledge of the products provided by various companies, including their 

respective features, advantages, and disadvantages. At this point, the buyer can analyse and 

compare the numerous options available in the market. Consequently, the buyer preselects the 

product to be purchased (Olshavsky & Granbois, 1979).  

The primary focus of the Howard-Sheth Model lies in examining the recurring purchasing 

behaviour exhibited by consumers and industrial buyers. This model adopts an empirical approach 

to comprehending the buyer's mindset during the process of acquiring a product or service. It has 

been extensively implemented and subjected to thorough testing to assess its effectiveness and 

applicability. 

The Howard-Sheth model contains conceptual faults despite its evident importance in the 

development of consumer decision-making models. Evidence indicates that consumers do not 

always adhere to the model's recommendations, and the model is overly complex for routine 

transactions (Olshavsky & Granbois, 1979). 

1.3 Consumption Values Theory 

Sheth et al. (1991) propounded the theory and its values by combining economics, marketing, 

consumer behaviour, sociology, and psychology; thus, the consumer value theory provides a 

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multidisciplinary perspective for research on consumer choice behaviour. The theory focuses on 

consumption values, explaining why customers prefer one brand over another, one product type 

over another, or whether they will use a product. Figure 3.0.1 is a pictorial representation of the 

consumption values theory. 

Figure 3.0.1: Consumption Values Theory 

The consumption value theory, which is applicable to a wide range of product types (consumer 

non-durables, consumer durables, industrial goods, and services), has been tested for different 

consumer decisions and is used as the foundation to explore the patronage decision specifically  

(Sheth et al., 1991). By emphasizing consumption behaviour, this theory explains and predicts 

choice behaviour and illuminates the rationale for consuming behaviour. The consumption values 

theory has been applied to research consumer behaviour in a variety of circumstances, including  

the usage and acceptance of technology (Bødker, Gimpel, & Hedman, 2009), e-learning adoption 

(Ray, Bala, Dasgupta, & Srivastava, 2020), and mobile banking adoption (Burucuoglu & Erdogan, 

2016b). The theory's practicality is limited to individual, systematic, and voluntary decision-

        

      

         

               

                

            

                 

               

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making. Based on the prior assessment, the alternative (product or service) that best fulfils the 

value they intend to obtain from using the option is perceived (Sheth et al., 1991). 

Three fundamental propositions are axiomatic to the theory: 

1. Consumer choice is a function of multiple consumption values. 

2. The consumption values make differential contributions in any given choice situation. 

3. The consumption values are independent. 

According to the consumption value theory, five consumption values influence consumer decision-

making. They include functional value, social value, emotional value, epistemic value, and 

conditional value. Any or all of the five consumption values could influence a decision. 

1.4 Functional Value 

The functional value is the primary determinant of consumer choice. (Sheth et al., 1991) defines 

this function as “the perceived utility of a product or service to attain utilitarian or physical 

performances that result from attributes, such as durability, reliability and price.” Ferber (1973) 

asserts that an alternative’s dependability, durability, and cost can be used to determine its value. 

The dimension of functional values can thus be described as the benefits obtained from a product's 

performance, quality and price (Ünal, Erciş, & Candan, 2013). For example, the sub-attributes 

location and price can be categorised under functional because the location of the vendor and the 

price of the product provide practical information to the user regarding where they locate the 

vendor and the cost of the product. 

  

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1.5 Social Value  

The perceived benefit that comes from associating an alternative with particular social groups is 

termed social values. These social benefits can positively and negatively affect specific 

demographic, socioeconomic, and cultural (ethnic) groups (Sheth et al., 1991). Terms such as 

social class, symbolic value, conspicuous consumption, reference groups, and opinion leadership 

are used to study social values (Ünal et al., 2013). Sub-attributes such as influence characteristics 

and celebrity endorsement can be classified under social value. The influence characteristics 

provide users with social proof and the opinions of others. The celebrity endorsement also appeals 

to users who are influenced by the lifestyle of public figures. 

1.6 Emotional Value  

Emotions can be defined in the context of consumer behaviour as feelings or emotional reactions 

to components such as “situations, products, advertisements, and brands”. The benefit derived 

from one's emotional and sensational state is referred to as emotional value (Sheth et al., 1991). 

How customers react to a product determines its value. Products and services are commonly linked 

to emotional responses. For example, social media users can attach an emotional value to a brand 

or an organic ad. A brand or an organic ad can evoke an emotional response, such as the feeling 

of prestige or authenticity. 

1.7 Epistemic Value 

The benefit that meets the desire and need for innovation can be described as epistemic value 

(Sheth et al., 1991). Examples of epistemic value include the product's perceived curiosity and the 

benefit it provides in satisfying the desire and need for innovation (Sheth et al., 1991).  

 

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1.8 Conditional Value  

Conditional value refers to the benefit that results from a specific condition that the individual 

making a decision encounters and experiences at that time. This additional benefit appears 

unexpectedly as a factor that increases functional or social worth. The perceived utility of an 

alternative is determined by the specific situation or circumstances that the decision-maker 

currently faces (Ünal et al., 2013).  

Social media users can attach conditional value to sub-attributes such as verified accounts, 

warranty or no warranty, and sponsored ads. The sub-attribute, verified account gives users some 

form of assurance that the vendor is legitimate. Warranty is also a sub-attribute that assures users 

that they can receive compensation or a replacement in case of defects or malfunction. No warranty 

provides social media users with the knowledge that they will not receive any compensation or 

replacement in case of defects or malfunctions. A sponsored ad also provides social media users 

with the knowledge that the vendor has paid to promote their product. 

1.9 Random Utility Model  

The Random Utility Model (RUM) is the second theory guiding this study. It is a mathematical 

framework used in economics, particularly in choice modelling and econometrics, to understand 

and analyse individual decision-making, often in the context of consumer choices (Hess, Daly, & 

Batley, 2018a).  

The Random Utility Model (RUM) development is rooted in foundational microeconomic 

consumer theory.  Over the years, RUM has evolved as a framework in economics and choice 

modelling. Some notable scholars whose work contributed significantly to the theory formulation 

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include Leon Thurstone, Jacob Marschak, R. Duncan Luce, Kelvin Lancaster, and Daniel 

McFadden (Walker & Ben-Akiva, 2002). 

The model approximates an individual's preferences by giving each alternative a real-valued score 

from a parameterized distribution, usually independently, and then ranking the options according 

to the scores (Soufiani, Parkes, & Xia, 2012).  

The Random Utility Model (RUM) posits that the desirability of a choice can be broken down into 

two components. The first component depends on measurable attributes (observable covariates) 

and certain parameters that need to be determined through estimation. The second component, on 

the other hand, is a random element that encapsulates all the unobservable factors influencing an 

individual's preference, like personal inclinations and psychological aspects. This approach 

acknowledges the complexity of decision-making and the interplay of observable and 

unobservable factors in determining a choice. 

RUM finds versatile applications in various fields, such as economics, marketing, transportation, 

and healthcare. It is used to understand and predict individual choice behaviour. RUM has been 

used in numerous studies (Afful-Dadzie & Egala, 2022; Bastin, Cirillo, & Toint, 2010; Masiero, 

Yang, & Qiu, 2019), including travel behaviour analysis, market research, environmental 

economics, healthcare decision-making, travel demand forecasting, and tourism. Its adaptability 

and capacity to model individual preferences make it a valuable tool for applications where choices 

play a critical role in decision-making. 

Using the Random Utility Model (RUM) effectively eliminates cyclic preferences and allows for 

a more precise capture of preference intensity, enhancing our understanding of consumer choices. 

Each agent’s outcome correlates to a real-number order, meaning the modelling approach provides 

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a numerical representation of preferences, making it easier to quantify and analyse choices, 

ultimately enhancing the understanding of consumer behaviour (Hess, Daly, & Batley, 2018b). 

1.10 Chapter Summary 

The present chapter presented a detailed exposition of the theoretical frameworks that underpin 

the study, namely the consumption values theory and the random utility model. The chapter 

commences by providing a concise historical overview of the consumption values theory. 

Subsequently, it explicates its multiple components, elucidates its application in past research 

endeavours, and explicates its potential utility in illuminating the preferences of social media users. 

Following this, the chapter proceeds to explicate the relevance of the random utility model in 

expounding the intricacies of the decision-making processes of the study participants and in 

providing a more precise forecast of their preferences. 

 

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CHAPTER FOUR 

RESEARCH METHODOLOGY 

1.11 Introduction 

The previous chapter discussed the appropriate framework for the study and its applicability to 

this study. This chapter elaborates on the methodology used in the study. Research methodology 

is crucial to ensure an adequate level of credibility for any kind of information systems research. 

The chapter first expatiates the various research paradigms used in information systems research 

and then selects the appropriate paradigm with justification. This chapter further discusses the 

target population, sampling technique, data gathering method, data gathering instruments, and data 

analysis technique.  

1.12 Research Paradigm 

Typically, research is built upon a collection of philosophical assumptions that mirror the 

researcher's perspectives and beliefs (Krauss & Putra, 2005). Paradigms consist of a collection of 

beliefs that shape researchers' perspectives within a specific discipline regarding the selection of 

research topics, the methodologies employed, and the interpretation of study findings (Bryman, 

1998). Kuhn (1996) defined paradigm as a framework of beliefs by which reality is interpreted. 

(Johnson, Burke R. Christensen, 2017) also defined research paradigm as a viewpoint on research 

that a community of researchers ascribe based on a shared set of presumptions, beliefs, values, and 

activities. Research paradigms can be categorised into three (3) viz. Ontology, Epistemology, and 

Methodology.  

“The nature of our beliefs about reality” is referred to as ontology (Richards, 2003). Ontological 

presumptions define what constitutes genuine researchable issues by referring to the nature and 

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shape of reality and truth (Guba & Lincoln, 1994). Researchers sometimes make implicit 

assumptions about the nature of reality, its functioning, and the potential knowledge that can be 

acquired from it. The ontological inquiry arises when a researcher seeks to explore and understand 

the fundamental nature of reality (Rehman & Alharthi, 2016). 

Epistemology, a branch of philosophy, deals with the essence of knowledge and the processes by 

which it is acquired and verified (Gall, Borg, & Gall, 2003). The epistemological perspective 

examines the type of connection between the knower and what is knowable. The “nature and forms 

[of knowledge], how it can be gained, and how it is communicated to other human beings” are of 

significance to this perspective (Cohen et al., 2018). The epistemological inquiry leads researchers 

to explore “the possibility and desirability of objectivity, subjectivity, causality, validity, and 

generalizability” (Patton, 2002). Conforming to a specific ontological belief system, whether overt 

or implied, gives rise to particular epistemological presumptions.   

A number of academics have defined the methodological stance. Guba and Lincoln (1994) define 

methodology as a perspective that entails the procedure for investigating a phenomenon. “An 

articulated, theoretically informed approach to the production of data” is what methodology is 

(Ellen, 1984). It alludes to the research and evaluation of data generation techniques. One's choice 

of research methodologies is influenced by one’s “strategy, plan of action, process, or design” 

(Crotty, 1998). The methodological approach “concerns how a specific piece of research should 

be conducted” (Grix, 2004). The methodological question helps the researcher choose the best data 

collection methods that align with the study goals and the data required. It prompts the researcher 

to contemplate the optimal approach for conducting a comprehensive study (Rehman & Alharthi, 

2016).  

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Information systems research encompasses three primary paradigms: the positivist paradigm, the 

interpretive paradigm, and the critical realist paradigm (Orlikowski & Baroudi, 1991).  

1.13 Positivist Paradigm 

Positivists argue that social phenomena are governed by laws that can be formulated and 

communicated through empirical statements using scientific methodologies (Rehman & Alharthi, 

2016). Positivism asserts that reality exists independently of humans.  It is unmediated by our 

senses and is governed by unchanging laws. The positivist paradigm is a systematic approach that 

combines deductive reasoning with precise empirical data to establish and validate a collection of 

probabilistic causal laws that enable making comprehensive predictions (Neuman, 2014).  

Realism is the positivists’ ontological position. Positivism seeks to understand society in a manner 

analogous to how it comprehends the natural world. Just as nature exhibits a cause-and-effect 

relationship between phenomena, positivism aims to establish this relationship to anticipate future 

occurrences of such phenomena with a high degree of certainty (Rehman & Alharthi, 2016). The 

positivist paradigm is an epistemic view that supports using natural scientific approaches to 

explore social reality and other topics (Bryman & Bell, 2016). The positivist paradigm allows the 

formulation of a hypothesis that can be tested for an explanation to be deduced. The goal is to 

understand reality’s genuine essence and how it operates (Bryman, 2012; Guba, 1990). 

Positivists hold an objectivist epistemological position. Researchers approach the examination of 

phenomena that exist independently of them by assuming the role of impartial observers who avoid 

interference or modification of the observed events. Using words and symbols, they describe 

phenomena in their actual, unaltered state (Rehman & Alharthi, 2016). Experimentation is central 

to positivist methodology. Propositional or question-based hypotheses are made regarding the 

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relationship between various events and their causes. The gathered empirical evidence is 

subsequently analysed and synthesized into a theoretical framework that elucidates the impact of 

the independent variable on the dependent variable.  

The deductive approach to data analysis is employed, whereby a hypothesis is initially posited and 

subsequently validated or disproven through statistical analysis. The objective is quantitatively 

measuring, regulating, predicting, establishing laws, and attributing causality (Cohen et al., 2018). 

The positivist perspective has been critiqued by academic scholars (Richards, 2003). They contend 

that objective and scientific methods are less useful when examining social phenomena than 

natural items. 

According to Richards (2003), as cited in Rehman and Alharthi (2016), there is a critique that 

positivists’ assumption of applying scientific methods to the examination of social phenomena 

leading to the discovery of governing laws is “naive”. Richards (2003) supports this assertion 

based on the findings of other researchers. 

Laboratory experiments, field experiments, and surveys are often the positivists’ preferred research 

techniques. Researchers seek substantial volumes of empirical data that can be subjected to 

statistical analysis in order to identify latent patterns (Weber, 2004). 

1.14 Interpretive Paradigm 

Interpretivism arose as a “response to positivism’s over dominance” (Grix, 2004). Interpretivism 

challenges the notion that a solitary, verifiable reality exists autonomously from our sensory 

perceptions. The interpretive paradigm recognizes people’s explanations of how they comprehend 

the world and its structures and processes. The interpretive paradigm assumes that individuals 

construct and connect their own subjective and intersubjective meanings as they engage with their 

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environment. As a result, researchers look to participants’ interpretations of occurrences in an 

effort to comprehend them (Myers & Avison, 2002; Orlikowski & Baroudi, 1991).  

Interpretive ontology embodies anti-foundationalism, which challenges the existence of permanent 

and unchanging (or foundational) criteria through which universal truths can be apprehended 

(Guba & Lincoln, 2005). Subjectivity is a characteristic of Interpretive epistemology. People 

interact socially with one another and society, giving many social phenomena names and 

meanings. (Grix, 2004) asserts that researchers are “inextricably part of the social reality being 

examined, i.e., they are not “detached” from the subject under investigation” (p.83). Rather than 

pursuing knowledge and truth that surpasses context and value, interpretive research strives to 

understand how individuals perceive the social phenomena with which they interact. 

The primary objective of interpretive methodology is to comprehend social phenomena within 

their contextual framework. Similar to ethnography and case studies, interpretivists predominantly 

collect qualitative data from individuals over an extended duration. Interpretive methodology 

necessitates viewing social phenomena “through the eyes of the participants rather than the 

researcher” (Cohen et al., 2007, p. 21). Case, ethnographic, phenomenographic, and 

ethnomethodological studies are frequently used as favoured study methodologies by interpretive 

researchers (Weber, 2004). While numerical data may be included, interpretive researchers do not 

rely on them heavily, as they employ methodologies that generate qualitative data. Data collection 

procedures such as observations, field notes, personal notes, document analysis, and open-ended 

interviews with varying levels of structure are employed to gather qualitative data. 

Inductive data analysis is employed to examine patterns within the data, which are subsequently 

condensed into overarching themes to elucidate a phenomenon and construct a theory. This 

approach contrasts with the deductive method, where researchers identify patterns and themes 

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prior to data collection and subsequently search through the data for instances of the predetermined 

patterns and themes in the form of words, statements, and events. (Rehman & Alharthi, 2016). 

Interpretivists refrain from employing deductive reasoning since they view theory as emerging 

from the process of data collection rather than serving as the primary driver of research. (Grix, 

2004). In order to “preserve the events in a fairly authentic manner for subsequent data analysis,” 

data often assumes a conversational nature rather than being presented in statistical form. 

Furthermore, this data is commonly captured through audio or video recordings (Gall et al., 2003). 

Guba and Lincoln (1994) proposed a framework of standards for evaluating the credibility of 

interpretive research. This framework states that a study is of good quality if it demonstrates 

credibility (internal validity), transferability (external validity), dependability (reliability), and 

confirmability (objectivity). 

1.15 Critical Paradigm 

The critical paradigm posits that individuals are frequently misled and inclined to believe 

falsehoods. Therefore, it is the researcher’s responsibility to remove the top layer of fabrication to 

expose the hidden level of objective reality Neuman, 2007). The critical researcher looks closely 

at social circumstances and situates them within a broader historical framework. By analysing 

current social systems and exposing any inconsistencies and conflicts that may be inherent within 

their structures, the critical researcher attempts to critically analyse and reform the social reality 

under examination (Orlikowski & Baroudi, 1991). 

Critical theorists adopt an ontological stance of historical realism, acknowledging the existence of 

reality but recognizing its formation through the interplay of cultural, political, ethnic, gender, and 

religious influences within a social system. From an epistemological perspective, critical theory 

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embraces subjectivity, acknowledging that researchers inevitably influence the subjects they study 

and thereby cannot maintain complete objectivity.  

Critical educational research aims to transform society, not just to describe or understand it (Patton, 

2002). Instead of producing knowledge about the current state of the social world and reinforcing 

existing knowledge, critical researchers aim to uncover the beliefs and behaviours that restrict 

human freedom, with the ultimate objective of transforming the situation (Kincheloe, 2008, cited 

in Rehman & Alharthi, 2016, p.57). 

Guba and Lincoln (1994) assert that Critical methodology is dialogic and dialectic