The Effect of Social Media Marketing on Consumer Purchasing Decisions

1.1 Introduction

Social media marketing is defined as the use of social media platforms and digital technologies to create, communicate, deliver, and exchange marketing messages that influence consumer behavior and build relationships between businesses and customers (Tuten & Solomon, 2017). In recent years, social media marketing has become a dominant force in the global marketing environment due to the widespread adoption of internet-enabled devices and the growing popularity of social networking platforms.

Businesses now rely heavily on social media to promote products, engage consumers, and drive sales, as these platforms provide interactive, cost-effective, and measurable marketing opportunities compared to traditional advertising channels (Kaplan & Haenlein, 2010). Among various social media platforms, Instagram has emerged as a powerful marketing tool because of its visual orientation, user engagement features, and integration of business-friendly tools such as product tagging, sponsored posts, stories, and direct messaging (Kotler & Keller, 2016).

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are significance of the study, scope of work, research hypothesis and questions, limitation of the study and definition of terms.

1.2 Background of Study

In Nigeria, social media adoption has grown significantly over the last decade, driven by increased smartphone penetration, affordable internet access, and changing consumer behaviors. It is reported that Nigerian businesses, particularly small and medium enterprises (SMEs), have increasingly used Instagram as a platform to reach consumers, promote products, and facilitate online sales (Eze et al., 2020). Vendors leverage features such as product tagging, live videos, and influencer collaborations to attract attention and build trust among potential buyers. The visual appeal and interactive nature of Instagram have transformed consumer expectations, as online engagement now plays a major role in purchase decision-making.

Historically, consumer purchasing decisions were heavily influenced by in-person interactions, physical inspection of goods, and word-of-mouth recommendations. Kotler and Keller (2016) stated that the rise of e-commerce and social media marketing has changed this dynamic, as consumers now evaluate products based on online content, peer reviews, and social influence before completing a purchase. In the Nigerian context, where many Instagram vendors operate informally without physical storefronts, social media marketing has become a crucial determinant of consumer trust and buying behavior (Kotler and Keller, 2016).

Social media marketing has become a transformative tool in the contemporary business landscape, offering businesses the ability to reach, engage, and influence consumers through digital platforms. According to Kaplan and Haenlein (2010), social media marketing is the utilization of social networking sites to promote products and services, build brand awareness, and foster relationships between businesses and consumers. These platforms provide interactive features that allow businesses to communicate directly with customers, receive feedback, and create personalized marketing content tailored to consumer preferences.

Instagram, in particular, has emerged as a significant platform for social media marketing due to its visual-centric interface, user-friendly design, and robust features such as stories, reels, and shopping tags. Mangold and Faulds (2009) reported that visual content has a strong influence on consumer perception and decision-making, as images and videos enhance engagement and help consumers evaluate products before making purchases. In Nigeria, Instagram has become a hub for small and medium-scale entrepreneurs who operate online businesses, leveraging social media to reach wider audiences without relying on physical storefronts.

Kotler and Keller (2016) asserted that consumers evaluate product alternatives based on perceived value, trust, social influence, and prior experiences. In the context of Instagram marketing, influencers, peer recommendations, and interactive content play a significant role in shaping consumers' attitudes and buying intentions. Tuten and Solomon (2017) stated that social media marketing fosters both brand engagement and consumer loyalty, which are key drivers of repeated purchase behavior. Eze et al. (2020) contended that social media marketing effectiveness is influenced not only by the promotional strategies employed but also by the socio-economic and cultural contexts in which consumers operate (Eze et al., 2020). The growing adoption of Instagram for commercial purposes underscores the need to understand how social media marketing strategies influence purchasing decisions in Nigeria. Many businesses rely heavily on these strategies, yet empirical evidence regarding their effectiveness in driving actual consumer purchases remains limited. This study is set against the backdrop of investigating the effect of social media marketing on consumer purchasing decisions, using Instagram vendors in Nigeria as a case study.

1.3 Statement of Problems

Investigation revealed that the rapid growth of social media platforms has transformed the way business activities are conducted globally, with Instagram emerging as one of the most prominent marketing platforms for small and medium-scale vendors in Nigeria. Also, many vendors invest significant time and financial resources into content creation, influencer collaborations, and paid advertisements without clear evidence of how these strategies shape consumer attitudes, trust, and actual buying behavior.

Furthermore, consumer purchasing decisions are increasingly influenced by online factors such as product reviews, influencer endorsements, visual appeal, and perceived credibility of vendors on social media. However, the extent to which these factors translate into actual purchase decisions among Nigerian consumers remains unclear. Some consumers are exposed to frequent promotional content on Instagram yet still hesitate to make purchases due to concerns about product quality, online fraud, lack of physical inspection, and poor after-sales service. It is against this backdrop that this study seeks to investigate the effect of social media marketing on consumer purchasing decisions, using Instagram vendors in Nigeria as a case study.

1.4 Aim and Objectives of Study

The aim of this study is to evaluate the effect of social media marketing on consumer purchasing decisions, focusing on Instagram vendors in Nigeria. In achieving this aim, the following specific objectives were laid out as follows:

1. To examine the impact of Instagram promotional content on consumer purchase decisions.
2. To assess the influence of influencer endorsements on consumers' buying behavior.
3. To determine how visual content (images and videos) affects consumer trust and purchasing intentions.
4. To identify the challenges and limitations faced by Instagram vendors in influencing consumer purchases.
5. To provide recommendations for enhancing the effectiveness of social media marketing among Instagram vendors.

1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• How does Instagram promotional content influence consumer purchasing decisions?
• What is the effect of influencer endorsements on consumers' buying behavior?
• In what ways does visual content (images and videos) affect consumer trust and purchase intentions?
• What are the challenges faced by Instagram vendors in influencing consumer purchases?
• How can the effectiveness of social media marketing among Instagram vendors be improved?

1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

• H₀1: There is no significant effect of social media marketing on consumer purchasing decisions among Instagram vendors in Nigeria.
• H₀2: Social media promotional content has a significant effect on consumer purchasing decisions.
• H₀3: Influencer endorsements significantly affect consumers' buying behavior.
• H₀4: Visual content significantly influences consumer trust and purchasing intentions.

1.7 Significance of Study

It is believed that at the completion of the study, the findings will help Instagram vendors improve marketing strategies, enhance consumer engagement, and increase sales performance. The study will also contribute to academic knowledge on social media marketing in developing economies and offer evidence-based recommendations for marketers and policymakers.

Furthermore, the study will inform policies that support safe and effective social media commerce, protecting both vendors and consumers.

Lastly, the study will provide a basis for further research into social media marketing, consumer behavior, and e-commerce trends in developing countries.

1.8 Scope of Study

The scope of the research is focused on Instagram vendors operating in Lagos State, Nigeria, examining their social media marketing strategies and their influence on consumer purchasing decisions.

The research specifically investigates small and medium-scale businesses that rely primarily on Instagram for product promotion and sales. The study assesses factors such as promotional content, influencer endorsements, visual marketing, consumer trust, and purchasing behavior within the Nigerian market context.

1.9 Limitations of the Study

During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
3. Initial Cooperation Delay from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.

1.10 Definition of Terms

Social Media Marketing:

Social media marketing is defined as the use of social networking platforms to create and share content that engages consumers and promotes products or services (Tuten & Solomon, 2017).

Consumer Purchasing Decision:

This refers to the process through which individuals recognize needs, evaluate alternatives, and make choices regarding the acquisition of goods or services (Kotler & Keller, 2016).

Instagram Vendor:

An Instagram vendor is an individual or business entity that uses the Instagram platform as the primary channel for marketing and selling products to consumers (Eze et al., 2020).

Influencer Endorsement:

This is a marketing strategy where popular social media users with a significant following promote a product or service to influence their audience's purchasing decisions (Mangold & Faulds, 2009).

Visual Content:

This includes images, videos, reels, and other visual media used on social media platforms to attract consumer attention, communicate product information, and influence purchasing behavior (Kaplan & Haenlein, 2010).