KARELIA UNIVERSITY OF APPLIED SCIENCESInternational Business

Sergei Ziginov

CUSTOMER ENGAGEMENT VIA SOCIAL MEDIA. HOW DOESSOCIAL MEDIA MARKETING AFFECT CONSUMERDECISION-MAKING PROCESS AND SALES?CASE: ASOS

ThesisMay 2021

THESISMay 2021International Business

Tikkarinne 980220 JOENSUUFINLAND+358 13 260600 (Switchboard)

AuthorSergei Ziginov

TitleCustomer Engagement via Social Media. How Does Social Media Marketing Affect ConsumerDecision-Making Process And Sales? Case: ASOS

Commissioned byKarelia University of Applied SciencesAbstract

This paper examines how social media marketing helps to increase sales by influencing consumer

decision-making processes. In this thesis all the significant parts of social media and consumer behaviour

are covered: major social media platforms such as Instagram & Facebook, Global Trends in Social Media

and Consumer Behaviour, Consumer Behaviour Theories, Consumer Behaviour Online.

After considering the theoretical materials, this thesis paper shows the example of the British e-commerce

company ASOS, which sells clothes and accessories globally. In using the company as an example, the

paper demonstrates that it is significant to engage with customers via social media to understand and

influence their decision-making process. Thus, by participating in social media marketing correctly the

company can increase its sales and expand year by year.

The results of the research show that even when operating only online it is possible to be a leader on the

market by communicating with the audience via social media platforms. This is especially true with the

young generations. It is important not only to attract them but also maintain their loyalty by being in touch

24/7 with all segments of the audience. The outcomes include that site visits increase by 19% yearly, order

frequency increases by 7%, and active customers rate increases by 19% yearly, along with many others.

LanguageEnglish

Pages 37Appendices 5Pages of Appendices 5

Keywords

Social media, Social media platforms, Web 2.0, Marketing, Social media marketing, Trends, Online,Consumer Behaviour, Decision-making process, ASOS, Sales, Customer Engagement, Customer Loyalty,Social Media Performance

CONTENTS1 INTRODUCTION……………………………………………………………………..4

1.1 Background of the study……………………………………………………41.2 Research problem …………………………………………………………....41.3 Study limitations …………………………………………………………....51.4 Structure of the thesis………………………………………………………..6

2 THEORETICAL BACKGROUND …………………………………………………..62.1 What is social media?………………………………………………………..72.2 What is Web 2.0?…………………………………………………………….72.3 Social media as a marketing tool ………………………………………….92.4 Major social media platforms ……………………………………………..10

2.4.1 Facebook …………………………………………………………102.4.2 YouTube ………………………………………………………….112.4.3 Instagram ………………………………………………………...122.4.4 Twitter …………………………………………………………....122.4.5 LinkedIn ………………………………………………………….12

2.5 Global trends in social media ………………………………..132.6 Consumer behaviour ……………………………………………………….142.7 Consumer behaviour theories ……………………………………………..15

2.7.1 Marshallian economics …………………………………………..152.7.2 Psychoanalytic theory …………………………………………...152.7.3 Pavlovian theory ………………………………………………...162.7.4 Veblenian social-psychological theory …………………………162.7.5 Maslow’s hierarchy of needs (Figure 3) …………………………17

2.8 Decision-making process …………………………………………………..182.9 Consumer behaviours online ………………………………………………192.10 Global trends in consumer behaviour …………………………………...20

3 LITERATURE REVIEW/RESEARCH METHOD ………………………………….223.1 Qualitative and quantitative methods ……………………………………...223.2 Mixed methods research ……………………………………………………...233.3 Research process …………………………………………………………...24

4 CASE STUDY ……………………………………………………………………….244.1 ASOS ………………………………………………………………………254.2 Data analysis ……………………………………………………………....254.3 Findings…………………………………………………………………….30

5 CONCLUSION ……………………………………………………………………....315.1 Essentials of the findings…………………………………………………...315.2 Suggestions for further research…………………………………………....335.3 Summary of the thesis paper ……………………………………………….34

REFERENCES…………………………………………………………………………35

APPENDICES

Appendix 1 Digital around the world in 2018Appendix 2 Average number of social media accounts held by internet usersAppendix 3 Maslow’s hierarchy of needs within five levelsAppendix 4 Factors that influence decision-making processAppendix 5 The reply from ASOS representative

4

1 INTRODUCTION

This thesis paper studies social media and its impact on the consumer decision-making

process. The case company is the British apparel retailer ASOS.com. Its annual report

and professional articles about it were researched.

In this chapter a clear overview of the topic is presented by defining the background of

the study with its aims and goals. The relevance and problem statement are described,

too. Lastly, the study limitations are provided.

1.1 Background of the study

In the 21st century social media has become a significant part of daily routines; it

covers the majority of spheres, from usual communication to closing business deals. It

is impossible to imagine a single day without browsing the feed and exploring the latest

news. The same is happening with businesses. Those that want to increase their brand

awareness and customer loyalty always keep in touch with the stakeholders online on at

least a weekly basis.

Due to the increased value of social media activity, companies want to succeed online

since it is easier and faster to improve the customer performance.

It is crucial to attract potential and already existing consumers by using social media

sources since it affects their decision-making process and results in companies’ sales.

1.2 Research problem

In 2019 it is almost impossible to do any business without going online. However, there

are companies that still do not know how to do business in social media and, what is

more important, why they should do it.

5

It is crucial to engage with both existing and potential customers online before the

competitors attract them first. Attraction is the first key reason why companies go

online. Companies could catch the eye of a potential buyer while they are browsing the

net.

On the other hand, organisations and managers sometimes have no clue what steps

should be implemented in order to succeed in social media, what tools should be used,

and why today consumers prefer purchasing products and services online and from

companies that use social media as a direct channel for communication with all

stakeholders.

This study shows the necessity of social media trends in the business sector and how

organisations and management are able to benefit from it.

1.3 Study limitations

Despite the influence of the internet and social media, there are not many professional

studies of social media’s influence on business topics.

In addition, ASOS.com provides more financial results, key performance indicators

(KPI) and strategies for the future rather than marketing and social media appearance

indicators.

Moreover, in order to obtain more official data, an email to ASOS.com’s public

relations department was sent. In the email the data related to social media and

customer engagement that could not be found in the annual reports of the company was

requested. However, an ASOS.com representative replied with denial, referring to the

company’s policy of non-disclosure of such kind of information. He suggested checking

and analyzing the data and statistics that could be found online.

6

1.4 Structure of the thesis

The thesis paper consists of five major chapters. The first one makes an introduction of

the thesis with its background, research problem and explains the study limitations. The

second chapter mainly consists of theory and a literature review with academic

knowledge about social media and consumer behaviour. The topics of the internet,

major social media platforms and global online megatrends are described there. To add,

key consumer behaviour theories and decision-making processes are provided with the

explanations of existing and the prediction of future trends in the buying process.

The third chapter describes the case research process, what techniques were used to

complete the case part, what kind of information was provided and how it was gathered.

In Chapter 4 the case study is presented. In the beginning there is information about the

case company ASOS.com, its core activities and history. Then, there is an analysis of its

annual reports and necessary data, the latest marketing and social media of the company

are compared. In addition, customer relationships and engagement are studied. In the

end, the findings of the research related to ASOS.com are mentioned.

The final Chapter 5 is a conclusion where the thesis paper with all findings and the most

crucial information are summed up. Moreover, recommendations for further research

are suggested.

2 THEORETICAL BACKGROUND

This chapter contains information and studies the cores of social media and consumer

behaviour. First, the definitions of social media and Web 2.0 are explained. The usage

of social media in marketing is described. Five different social media platforms are

compared. Then, the global megatrends in social media are covered. Secondly,

consumer behaviour and all its five theories are covered. Also, the consumer behaviour

theories trends and decision-making process are defined.

7

2.1 What is social media?

Social media is “a group of Internet-based applications that build on the ideological and

technological foundations of Web 2.0, which allows the creation and exchange of

user-generated content.” (Kaplan and Haenlein 2010). However, despite the fact that

this definition is common and knowledgeable, the researchers still disagree about the

meaning and purpose of social media. It happens due to the rapid changes in the sources

where people gather data and information; basically anybody is able to provide his or

her own explanation to the definition of social media online. For instance, in the year

2008 the determination of social media was “an umbrella term that defines the various

activities that integrate technology, social interaction, and the construction of words and

pictures. This interaction, and the manner in which information is presented, depends on

the varied perspectives and 'building' of shared meaning, as people share their stories,

and understandings" (Wikipedia 2008). However, in 2011 it was changed to this:

"Social media are media for social interaction, using highly accessible and scalable

communication techniques. Social media is the use of web-based and mobile

technologies to turn communication into interactive dialogue."

Since social media is developing rapidly on a daily basis, its definition is expanding and

gaining new terms and factors.

This change could be caused by the global Megatrend (Rapid development of the

Internet and web Technologies) and the way people use it. (Dufva 2020.)

2.2 What is Web 2.0?

There is no clear definition of the term “Web 2.0”. However, generally professionals

believe that it is the Internet in all its terms. In reality this is true. Web 2.0 is an updated

form of the usual Web but with the shift from the typical HTML written pages to more

difficult platforms created with the help of many other script languages. In a nutshell,

Daniel Nations (2019) describes it as “the move toward a more social, collaborative,

interactive and responsive web”.

8

The first version of the Web was used more like a tool for life purposes such as the

gathering of the information. Web 2.0 has transformed this from a tool to a lifestyle and

the Internet era where everybody depends on it and the whole life has transferred to the

‘online world’. Social media platforms, online calls, web chats, money transfers and

security systems are all the parts of Web 2.0, so it can easily be called the Internet itself.

Web 2.0 has made humanity engaged in the process of Internet globalisation. (Nations,

2019.)

In other words Web 2.0 is “people connecting with other people”. The first Web was

used for consumption. Web 2.0 is developing itself through the millions of people who

use social media. Such social media platforms as Facebook, Instagram, Twitter, Reddit,

and YouTube are updated every single day with millions of posts connecting people

from different parts of the globe. Web 2.0 can be replaced with the words “online

interaction”. (Nations 2019.)

Furthermore, one more distinctive sign of Web 2.0 is the ability to work autonomously

and responsively. AJAX (abbreviation of Asynchronous Javascript And Xml)

technology is the cornerstone of Web 2.0. Such technologies and script languages are

capable of making a website collaborate with computers and downloaded Internet

browsers with no help of a person. It allows proceeding with anything online without,

for instance, clicking on it. The idea is to make the internet easier to use. The

easier to use, the more people are attracted. The clearest example here can be displayed

website notifications. (Nations 2019.)

In O’Reilly Dictionaries, Web 2.0 is explained as “the business revolution” in the

Information Technologies (IT) industry that began with the shift from the simple web

pages to the social platform. (O’Reilly 2005.)

9

2.3 Social media as a marketing tool

Due to the dramatic rise of social media in recent years it has been particularly

documented and followed by the analytics and the professionals. The growth of such

communicative tools and platforms as Twitter, Facebook, Instagram, etc. has driven the

life shift towards online-live communication even though the progress started in the

past two decades. (Chatterjee 2014.)

It has changed not only human lives but business cycles as well. Companies that

actively use social media as a marketing tool obtain more business opportunities seen in

increases of sales, brand awareness, and customer relationships. Social media activity

provides companies with the opportunity to interact with audiences, clients and

stakeholders online. Simple steps such as answering the questions of customers in social

media might benefit in attracting wider audiences and potential buyers. (Chatterjee

2014.)

On the other hand, in the last few years it has been becoming challenging since users

are getting used to internet activities and marketing techniques that sometimes can even

cause antipathy when people actually realize how some of them work. It is more

complicated to influence them as it was, for instance, five-ten years ago. This is why

companies are in need of finding out new tactics of attraction in order to be more

competitive in the social media field.

Nowadays, one of the cornerstones of social media is a fast-paced environment.

Companies realize that their social media accounts must be constantly updated, creative

and fresh because users seek for trends and new features all the time. In the 21st century

it is crucial to be creative and resourceful since the information and tendencies are

changing rapidly. (Chatterjee 2014.)

The challenge here is that brands not only should differ from competitors but also

predict what the customer wants to see. Every year the megatrends are changing; people

grow and needs become more sophisticated. Companies have to keep in mind

everything that goes on not only in their business sectors but in the rest of the world as

10

well. In the times of social media megatrend peaks, companies need to take into account

that life is slowly moving towards an online world that sometimes bears absolutely

different values. (Chatterjee 2014.)

In a nutshell, social media marketing is the way to attract new customers from both

millennials and generation Z, to stand out from the competitors, to interact with the

audience, to increase brand awareness and to rule the new shift towards online buying

and online marketing campaigns.

2.4 Major social media platforms

As mentioned, social media is rapidly expanding. The major source of progress and

innovation is human communication. The Internet has made a significant step in terms

of bringing people together and closer. Nowadays, they are able to reach and influence

each other in seconds just by texting on one of the platforms. This is one of the main

reasons why the Internet with its social media platforms are so rapidly growing and

widely used.

According to Statista, in 2015 the number of social media and online applications users

were over 2 billion (2.14 billion). In 2018 the number reached the point of 2.62 billion.

The majority of users are located in the Eastern, Southern and

Southeast Asia with 1,158 million, 449 million and 402 million, respectively. (Statista

2019.)

The text below describes the most popular social media platforms, according to Statista.

2.4.1 Facebook

Facebook is the most well-known social media platform in the world. It was launched in

2004 by an American entrepreneur, Mark Zuckerberg. Since the beginning the number

of users has been dramatically increasing, and by October 2012 it jumped to over one

billion active profiles. (Jokela 2013.) Facebook belongs to the social networking group

11

according to Brian Solis’ conversation prism 5.0 (Solis 2019). Facebook’s mission is

“to bring people around the world closer”, according to its homepage (Facebook 2019).

Basically anybody is able to use Facebook. To register there a user needs to have a valid

e-mail address that would help to create a personal or business profile. After registering,

users are able to complete a huge number of activities there. For instance, they are able

to add other users to the “friend list”, chat with them via private messages or post on

their pages if allowed. They can share anything by posting news, posts, photos, videos,

and memories on their own pages. Users are allowed to create groups and events where

they can invite other people, too. The Events option helps to attract people to, for

example, concerts, conferences, sport games, parties, etc. Groups can be created for

anything from a dogs’ fun club to a marketplace. (Jokela 2013.)

2.4.2 YouTube

Founded in 2005, YouTube started gaining awareness rapidly. The core idea of

YouTube is to upload a video and share it with the rest of the world. In 2019 it had over

30 million visitors a day, and around 500 hours of video were added each minute

(Kuligowski 2019). YouTube is one of the most highly visited websites, ranking second

place for global traffic. (Alexa 2019)

As with all other social media, YouTube allows users to like, comment, subscribe, share

and go livestream. People upload videos, and with the increasing number of views the

video becomes a trend. Users who gain a lot of views, for instance, over 100,000, are

able to get YouTube awards and money benefits. YouTubers were one of the first social

media influencers. (Kuligowski 2019.)

Since YouTube is one of the attended and used platforms on the Internet companies are

willing to invest in the advertising campaigns there. In each video a user clicks on there

are one or two short advertisements for something, from general goods and services to

even political campaigns. Those who post the advertising pay YouTube for it, and

YouTube pays Youtubers who get the advertising in their videos. In 2016 YouTube was

12

purchased by Google. (Kuligowski 2019.)

2.4.3 Instagram

As with Facebook, Instagram has the idea of sharing news and posts with followers.

The only difference is that on Instagram it is possible to share only visual posts, such as

photos and videos that are no more than one minute long. The Instagram app mainly

consists of a profile page and the main pool where the posts of people are shared. As on

Facebook, it is possible to follow other users, “like” their photos and videos, comment,

communicate via direct messages and browse popular posts in the exploring area.

During the past few years Instagram first launched “stories” that a user is able to post

for 24 hours. These also can be both photo or video, but the length is not more than 15

seconds. (Moreau 2019.)

2.4.4 Twitter

To add, one of the most popular social media platforms is Twitter, which was launched

in 2006. This platform is mostly for news, where users are able to write not more than

240 characters per post. These are known as “tweets”. (Driver 2019.)

2.4.5 LinkedIn

Linkedin is a social networking platform for professionals. Some people compare it to

Facebook but with the possibility to boost a career. The idea is quite similar: to connect

with people and chat on a professional topic. A user can create his/her profile where

professional and academic backgrounds are described. Then he/she can get in touch

with classmates, former and present colleagues and employers and even with unknown

people in order to expand professional networks, share professional and vital articles,

apply for new vacancies and create a resume. A company can also create its profile and

post its news and new job openings. (Nations 2019.)

13

2.5 Global trends in social media

As all the spheres Social Media has its own global megatrends that are impacted by

both inside and outside factors. It is crucial to stay updated with the latest trends in

order to succeed with social media marketing campaigns.

The first megatrend is continued growth of social media users. In 2019 over 4.3 billion

people had access to the internet with almost 3.5 billion active social media users

(Chaffey 2019). Every year the number of users increases by hundreds of millions of

people. For instance, in 2018 there were just more than 4 billion Internet users with 3.2

billion social media active daily accounts. (Radcliffe 2019.)

The second global megatrend is the shift from desktop devices to smartphones and

tablets. People are willing to go online and browse social media feeds via mobile

phones. It is faster; it is more convenient; it is easier. According to the latest research,

nine out of ten users access their profile with handheld devices. For example, Ofcom,

the United Kingdom’s communications regulator, and comScore explored that in

Europe, the Americas and Asia, the majority of media consumption occurs on mobile

devices. (Radcliffe 2019.) Companies should take it into account while starting their

marketing campaigns since they need to be designed specifically for the smartphones

and tablets. (Radcliffe 2019) (Figure 1.)

Moreover, Messengers are growing and slowly force the general networks out. Tools

such as, for instance, Facebook messenger, Snapchat or Chinese WeChat have started

including more and more services. They are not just about messaging anymore, they

include messaging, calls, video calls, livestreams and many more. Some of them have

marketplaces, and even the ability to order food and cabs. (Radcliffe 2019.) It is more

useful to have everything in one application than tens of different apps on a device.

On the other hand, despite the convenience of having everything in one application,

users continue to register to different social media accounts. According to

GlobalWebIndex, people who actively use the Internet have around eight accounts in

different social media platforms. To compare, in 2013 it was around four profiles per

14

person. (Radcliffe 2019) (Figure 2.) This could be caused by the popularity of those

social platforms or due to globalisation and its ability to connect the globe.

The last but not the least is the hype of “stories”. Stories are the short videos,

approximately 15-seconds long and varied according to platforms. They generally last

only for 24 hours and then are automatically deleted. In 2018, more than 300 million

“stories” were used daily in Instagram, 70 million were in Facebook Messenger, and

over 450 million were in WhatsApp messenger. (Radcliffe 2019.)

“Stories” are created for the mobile era. They are recorded and immediately posted to

the platform. This is why they are popular, they are here and now. This is essential in

the fast-paced world of today. “Mobile-first storytelling formats will come increasingly

to the fore” (Block Party 2018). Mark Zuckerberg believes that “stories” will replace

the usual feed that we are used to because “stories is a better format for sharing multiple

quick video clips throughout the day. The growth of stories will have an impact on how

we build products and think about our business” (Radcliffe 2019). Understanding that

“stories” are not just the future but already the present means that brands and

organisations are dynamically using this tool in social media marketing campaigns.

2.6 Consumer behaviour

Consumer behaviour is the applied science study that covers organisations and

individuals, their purchases and usage. Moreover, it consists of behavioural and

psychological aspects that are connected with these actions. Consumer behaviour is an

essential part of the marketing field since consumers are the ones who bring revenue

(Chand, 2021.)

In this chapter consumer behaviour and the decision making process are covered and

described.

15

2.7 Consumer behaviour theories

This subchapter explains five different consumer behaviours theories: Marshallian

Economics, Psychoanalytic Theory, Pavlovian Theory, Veblenian Social-Psychological

Theory, and Maslow’s Hierarchy of Needs. Their particular qualities are included.

Furthermore, the connection to the marketing and decision-making process exists.

2.7.1 Marshallian economics

Marshallian Economics Theory was founded by Alfred Marshall, a British economist,

who believed that consumers purchase a product or a service based on what is able to

bring more personal gratification. This theory is mostly argued about due to the fact that

human beings generally purchase what might offer satisfaction to them based on

affordability. (Nguyen 2018.)

The major points of this theory are:

● Sales are higher when a product has a lower price.

When a product has a lower-priced replacement, its sales will be higher. (Nguyen 2018.)

● If consumers’ income is growing, sales of a certain product will be greater in

case that the quality is even at a price. (Nguyen 2018.)

2.7.2 Psychoanalytic theory

Psychoanalytic Theory was founded by the Austrian psychologist Sigmund Freud. Even

though his studies did not emphasize consumer behaviour, they still could be applied to

the marketing field. In general he believed that human beings were not able to grasp

their own motivations and thoughts since they cannot control the factors which induce

16

their actions due to their strong connection with human desires and urgent needs that are

able to cause the feelings of guilt. (Bernstein 2018.)

As for consumer behaviour, the psychoanalytic theory states that customers react to

symbolic issues in the same way they do with the economic and functional ones. Any

external factors such as, for instance, income, age or any other demographic points

cannot absolutely influence the consumer behaviour of individuals since motivations

and thoughts are strongly connected to psyche. Thus, marketing campaigns focused on

an emotional exhortation to human feelings as, for example, hopes and fears are

generally more effective. (Bernstein 2018.)

2.7.3 Pavlovian theory

Pavlovian Theory comes from the studies of Ivan Pavlov, a Russian psychologist. As a

result of his efforts, he discovered that by ringing a bell right before feeding the dog, the

dog would start salivating. He concluded that the same study can be applied to human

behaviour that is caused by conditioned responses. (Bernstein 2018.)

This theory is well-known and used by marketing professionals. During the process of

starting a business or rebranding, marketing managers are able to form or turn customer

habits, or to strengthen the parts of the brand that were especially appreciated by the

consumers. (Bernstein 2018.)

2.7.4 Veblenian social-psychological theory

The Veblenian Social-Psychological Model was firstly found by Thorstein Veblen, an

American economist. He stated that humans are “social creatures” whose behaviour

changes due to the standards and trends of the subgroups they inhabit. In his opinion, a

person's wants and needs are influenced by those of the masses. (Bernstein 2018.)

17

Most of all, he applied his model to the high-income class of people. Veblen stated that

their desires and needs were focused more on the prestige and luxury goods rather than

on “utilitarian need fulfilment”. Even though his state could seem subjective and

personal, it still might be used by marketers. For example, it might help to find out what

social and demographic factors influence consumer decision-making. (Bernstein 2018.)

2.7.5 Maslow’s hierarchy of needs

Maslow’s hierarchy of needs (Appendix 3) is usually defined as a theory that describes

human motivation based on major psychological needs. Generally the hierarchy is

described in a pyramid. The lowest level is the most important one and must be

accomplished first in order to satisfy all the other ones one by one (Maslow 1987, 69.)

It was founded by the American psychologist Abraham Harold Maslow in 1943 and

updated in 1954. There are five levels of needs: psychological, safety, belongingness

and love, esteem, and self-actualization (Maslow 1987, 69.)

The core and bottom level is called psychological needs. This includes the needs a

human requires for living such as food, water, warmth, a place to sleep, breath, etc.

These are the core elements that maintain a person's life and body. Maslow believed that

other needs are optional and useless until these are not satisfied (Maslow 1987, 69.).

The second level is safety needs, which consists of personal space, security, laws,

justice, freedom, etc. They are in second place as others are able to be met only if a

person is free and not afraid of his/her life (Maslow 1987, 64.).

Thirdly, comes the level of belongingness and love. This implies interpersonal

communication and relationships such as friendship, trust, conversations, etc. A human

should not feel lonely in his/her life since relationships and belonging to one group or

another motivate state of mind and character (Maslow 1987, 64.).

The fourth level includes esteem needs. These needs could be divided into two

sub-groups. The first one is self-esteem, which might be maintained by achievements,

18

results, independence, etc. The second one is esteem based on a public opinion

generally accomplished by an earned status or, for instance, diversity that helps to stand

out from the crowd (Maslow 1987, 64.).

The last but not the least is the level of self-actualization needed. This one is more about

‘what else a person can do’. For example, understanding full self-potential and the

desire to develop and grow (Maslow 1987, 64.).

In a nutshell, a typical man ‘climbs the stairs’. After getting to one level he/she obtains

the motivation to get to another one through life experience. However, Maslow

mentioned that for each human the order of level is flexible. For some people

self-esteem is much more significant than for instance belongingness or safety. Other

people, for example, are ready to sacrifice basic human needs to find love. It all

depends on many factors such as personal thoughts, education, demographic aspects,

etc. That is why it is crucial to take into account that different target groups would need

different marketing campaigns since they all have different motivations, and the orders

and priorities of needs might differ significantly (Maslow 1987, 71.).

2.8 Decision-making process

Decision-making is the thinking process when a person chooses one consequential

selection out of the available options. While making a choice, a person should make a

comparison of advantages and disadvantages of each version and find out all the

alternatives. To obtain the most effective decision making, it is also essential to predict

the outcome of each version and only after that by comparing all the aspects might a

person define the most appropriate option for the exact case. (BusinessDictionary, 2019)

In a nutshell, the consumer decision-making process includes three main common

phrases that can be divided into five or seven. The first one is awareness, where the

person understands the need for an exact product/service. The second one is

consideration, where the person makes a market research to identify that companies

19

provide such service/products. The last stage is conversation, where the person makes a

selection of where to purchase.

Nowadays, businesses have a clear understanding that in the 21st century social media

directly influences the consumer decision-making process. According to the Relevance

report, 54 percent of the information from social media is used for decision-making in

the United States (Abimbola 2019). Furthermore, 75 percent of B2B consumers were

impacted by social media advertisements (Gilhan 2015). Professionals with the

expanded network usually gather the information regarding services and products

online; this is how their decision-making process starts (Abimbola 2019). The Deloitte

research says that in the process of purchasing 47% of millenials and 19% of other

generation groups are affected primarily by social media channels. (Abimbola 2019.)

Facebook is a proper example of the awareness and conversion phases. It helps to widen

the audience that would see ads and learn about a brand. Instagram is useful to make

buyers consider the brand by providing qualitative photo and video content. (Abimbola

2019.)

2.9 Consumer behaviours online

First of all, while discussing online consumer behaviour, it is significant to mention

again that the global online population is growing rapidly. In 2014 the global population

on the internet was estimated to number 2.32 billion (Saleh 2019). In the United States

alone the number of online customers consisted of 201.1 million people in 2015 (Saleh

2019).

Regarding gender, females are more willing to purchase online than males, 79% against

77% (Saleh 2019).

Most of all, online buyers keep purchasing online due to low prices, discounts, free

shipping option and time saving. The convenience and ability to compare prices rapidly

20

are among the top reasons why people prefer online purchasing instead of the usual

ways. (Saleh 2019.)

Regarding online purchases, people mostly buy clothing and accessories (71% of

females and 29% of males), making apparel retail the most popular among online

shoppers. Next comes equipment for hobbies, which is bought by 67% and 33% of

women and men constantly. Men are more willing to pay for event tickets and

electronics on the internet. (Saleh 2019.)

As to factors influencing the e-customer behaviour, there is the FFF Model of Online

Consumers Behavior by Ujwala Dange and Vinay Kilmar. It explains that there are

external factors that include demographics, environment and politics, culture and

marketing, and internal ones consisting of the behaviour, hobbies and interests, income

level, state of mind and attitudes towards the product. (Grabowski 2017.) (Appendix 4.)

After the factors there are motives that might be impacted by the functional ones that

refer to the person’s needs such as time, the ability to purchase online, product

selection, and by the non-functional ones which are reflected in the values of society

that might, for instance, impose the brand image or reputation. (Grabowski 2017.)

The third stage is filtering. Buyers generally check the trustworthiness and feedback

from the former customers, the privacy policy to keep the personal information safe and

to avoid the opportunity of getting spammed, and, lastly, security to make the payment

details secure. If one of these elements does not satisfy the consumer’s concern he/she

will not make a purchase and will search for other options. (Grabowski 2017.)

The last phase in this model is the re-check. Here the buyers again weigh all the pros

and cons, decide if they need a product or should they rather prolong this purchase. If

everything is fine, the person proceeds to the final payment and finishes buying.

(Grabowski 2017.)

21

2.10 Global trends in consumer behaviour

Global trends always change; recently one of the key trends in consumer behaviour was

the desire to escape from reality so people were more willing to invest in, for instance,

machines and games to entertain themselves. A general customer was thinking more

about personal satisfaction rather than the stability of society. However, in 2019 this

phenomenon is modifying more towards common sustainability and facing reality.

People are still willing to invest their money into machine learning but for more

productive and useful purposes such as, for example, eco-friendliness rather than

entertainment. (Danziger 2019.)

Such a phenomenon has created the global megatrend called “Responsible

Consumerism”. This megatrend includes the customers’ desire to purchase the brands

that would drive them towards smart and responsible choices. People are coming back

to nature protection and want to face environmental issues in order to create a circular

economy in the end. (Danziger 2019.) H&M is an example of responsible consumerism.

The company has started providing discount coupons for old clothing recycling. A

person just needs to bring a small bag with old textiles and clothes to the nearest store

and he/she will get a discount. Both textiles and bags get recycled, as stated on the

H&M corporate website (H&M, 2021.)

In the food industry, healthy and organic food are taking over the shelves. People would

like to know what they eat and what food is made from. They understand that healthy

food influences their bodies, health in general and welfare. Consumers trust less in

factory-made food, and prefer farm-made products more. Farmers also understand such

shifts and some of them already offer online orders and free delivery. (Danziger 2019.)

Unhealthy lifestyles cause many diseases, including cancer, which humans are afraid of,

so the shift towards the organic and healthy is obvious. The manufacturers of chemical

food, tobacco and alcohol will get a fall in sales and be trustworthy. (Infiniti Research

2019.)

Furthermore, safety becomes one of the key trends in online purchasing. Not only is

safe buying essential nowadays, but so are products and services that provide safety and

22

security in personal and daily life. For example, safe systems and smart and automatic

solutions for home are among the top online purchases nowadays. (Danziger 2019.)

Last but not least, Forbes strongly believes that generation Z has made a shift in luxury

goods. Young people do not trust and respect logos and labels. They do not feel that, for

instance, wearing brands shows someone's identity or superiority. Due to this reason a

dramatic decrease in popularity of famous and big brands is forecasted. The youth

would like to purchase something that brings an important value to the society, such as

tolerance or sustainability. (Danziger 2019.)

3 LITERATURE REVIEW/RESEARCH METHOD

The following chapter will explain what research methodology was used in order to

make a report and to complete the empirical study. The chapter itself contains three

parts. First of all, the qualitative and quantitative approaches are described with the

conclusion why one specific approach was chosen. Then, the data collection process

and sources are provided. Lastly, the validity is discussed.

3.1 Qualitative and quantitative methods

Both qualitative and quantitative methods are used to support study papers and research

in different fields from business and management to medicine (Stumpfegger 2017).

Qualitative research provides an opportunity to complete a systematic way of

discussing a phenomenon within a specific field and subject (Mason 2019). Phenomena

are studied from all sides, which is especially effective when issues are in an

exploratory phase. The data gathered generally includes verbal reports of professional

experiences. Data is usually initiated through a variety of theoretical opinions,

observation and assumptions, interviews, life experience, records. (Stumpfegger 2017.)

23

On the contrary, studies based on a quantitative approach are directed at confirming or

refuting assumptions and hypotheses by a deep analysis of existing data (Stumpfegger

2017). Quantitative studies allow researchers to research and analyse strong connections

between materials, papers and situations. Quantitative statistics mainly includes

numbers gathered by analysing correct and proved records. (Mason 2019.)

In this particular thesis paper both approaches were applied. It is called the mixed

methods approach and it is described in the next subchapter. Mostly the quantitative

method was in use to describe the problem and prove it with the theory. The fact that the

topic is new and not studied well yet causes the scarcity of data and numbers. On the

other hand, several topics such as gathering of statistics and comparisons include

quantitative approaches with proven records and data. To conclude, this study

implements both qualitative and quantitative methods.

3.2 Mixed methods research

When it comes to the case, when the research includes both qualitative and quantitative

approaches, it is called a mixed methods research that requires collecting and analysing

data and, finally, providing proofs and findings.

This type of method is beneficial when it is impossible to get the answers only by

analysing the qualitative or quantitative data. To add, it helps to identify a correlation

between two approaches. Thus, mixed methods might explain the scientific evidence in

numbers and connect them to the experts’ opinions and findings.

On the other hand, the mixed methods approach generally takes more time than the

other ones to obtain and relate all the information. To be more specific, while

conducting mixed methods research, more time resources are attracted to it. (Shorten &

Smith 2021.)

3.3 Research process

24

As previously mentioned the major research method chosen to complete the study was a

qualitative one supported with a quantitative approach. It was the key factor in finding

the outcome of the research. The found data was analysed in order to look at the issue

from different perspectives and points of view. The data was gathered in English.

First of all, social media in general, major social media channels and global megatrends

were analysed in order to get a coherent understanding of modern social media and why

it is significant in this particular thesis paper. For that statistics from trusted sources

were gathered and compared. Statistics included people’s usage of different online

sources by geography, age, purposes of platforms, etc.

After that, major consumer behaviour theories and decision-making processes were

discussed in order to understand how consumers react and behave specifically in

different situations and what motivates them to purchase. This was accomplished by

looking at the theoretical backgrounds and plenty of research. For instance, after

discussing consumer theories in general, they were compared to the consumer theories

focused on online purchasing.

Later, the analysed knowledge was applied to the practical case of ASOS.com. In the

beginning, ASOS.com was described in general. Then, its statistics and numbers from

the latest annual reports were studied with the outcomes concluded. The outcomes were

found with the help of applied information from the theoretical parts. The practical part

and the thesis findings are presented below.

4 CASE STUDY

The chapter includes the basic information regarding one of the British leaders in the

e-commerce industry. Then, it contains the analysis of the online strategy of ASOS,

cases in social media marketing and the outcomes that they have received. The

outcomes include numbers in terms of revenue, active users, new users, etc. Then, the

25

findings of the research are mentioned.

4.1 ASOS

ASOS was launched in 2000. However, in the beginning it was called ‘As seen on

screen’ by Nick Robertson and renamed to ASOS (the abbreviation of the previous

name) in 2003. Nowadays, it is the largest fashion retailer in the United Kingdom;

however, it is also very well-known and actively used in the rest of Europe, too. ASOS

provides its customers with more than 36,000 labelled and own fashion and beauty

products such as male and female clothing, perfumes, footwear, accessories, make-ups

and beauty products. ASOS is an online platform where people explore and purchase

products with delivery all over the world. (ASOS, 2010) In a year their product mix

consisted of over 85,000 branded and self-labelled items. (ASOS 2016.)

The target audience includes mostly generation Z and millennials. The age group ranges

from 16 to 34. (ASOS 2010.) However, in ASOS’s 2016 annual report it was stated that

the company is focused on 20-somethings (ASOS 2016).

4.2 Data analysis

To begin with, ASOS invests quite a lot into marketing campaigns. In 2018 the

company’s expenses were estimated at £1,135.2 million. Marketing expenses consisted

of £106.7 million, making almost 9.5 % of the entire expenses. The share of marketing

is increasing dramatically. To compare, in 2017 the company invested £86.8 million,

which is 23% less than in 2018, in marketing. (ASOS 2018.) In ASOS’s annual report

of 2018 it is stated that “Marketing costs decreased by 10bps to 4.4% of sales as a result

of digital marketing efficiencies” (ASOS 2018). This information is evidence of

Chapter 2.3, which explains that social media is one of the most significant marketing

channels today.

26

Regarding customer engagement, ASOS affirms: “Our business model is specifically

based around engagement with a focussed group of customers, namely 20-somethings,

including providing them with a range of fashion services and content as well as great

fashion retail – which in turn reduces the reliance of the business on e-commerce

drivers such as digital marketing” (ASOS 2018). The company understands that the

target audience is 20-somethings that grew up in the era of internet development and are

active online users (relates to the Chapter 2.5 & 2.10 with its global trends). One of the

cornerstones of the e-commerce of the company that deals with online retail is

successful digital social media campaigns. Due to this, ASOS is ready to invest time

and money into qualified content in order to build strong relationships with the existing

and potential customers (Bradford 2018). Additionally, the 20-something target

generation group’s values and thoughts are the drivers of ASOS’s business boost. Forty

percent of Generation Z and 35 percent of millennial shoppers constantly give feedback

online. The most famous way is to leave feedback on retail websites. (ASOS 2018.)

This information evidences the data from Chapters 2.6 and 2.9.

ASOS believes: “Having been one of the first movers in online fashion retail, we have

greater experience in how to best use e-commerce drivers such as brand advocacy and

digital marketing in a fashion context than newer entrants to the market” (ASOS 2018).

The company clearly understands what it is. ASOS is among the most successful digital

brands. The company has achieved this status due to the numerous successful social

media marketing campaigns to guarantee customer engagement that support sales and

business development activities. (Bradford 2018.) This paragraph evidences all the

theory from all of Chapter 2 but mostly from Chapter 2.8, which describes the

consumer decision-making process.

ASOS uses different online tools. The major ones are social media accounts in

Instagram, Facebook and Twitter. ASOS is proud to believe that it provides its

consumers with “shared through an unbeatable online experience” that is the

“compelling content” ASOS posts (ASOS 2018). All in all, ASOS has over 22 million

social media followers on social media platforms (ASOS 2018). The company tries to

make the customer experience as convenient and memorable as possible. For instance,

ASOS has launched its website in ten languages to make people from different

27

geographical areas browse and purchase in their native languages (ASOS 2018). Thus,

ASOS was able to increase the activity of its international customers, upgrade

navigation, visual features and communication tools both on the web page and in the

application (ASOS 2018). Finally, due to localisation and targeting, ASOS has

modernized its push notifications and displayed messaging software to chat with the

website visitors in their own language. This added the possibility to target on-site

messages in the United States of America, the Russian Federation and Australia (ASOS

2018). The paragraph clearly evidences Chapter 2.3.

To add, engagement via social channels keeps one of the key parts of ASOS customer

strategy in terms of social media content. Since Instagram has launched its “stories”,

ASOS has been using them actively. This caused a dramatic engagement through this

Instagram tool. In 2018 the company’s “stories” were viewed around 244 million times

(ASOS 2018). This information evidences Chapters 2.3, 2.4 and 2.5.

By collaborating with Instagram, ASOS developed with Instagram shopping. Together

both companies have launched “a geo-targeted shopping feed”. To say more, ASOS

became the first brand that successfully launched in different currencies despite the

strict policy of currency restriction for retail (ASOS 2018). This information evidences

Chapters 2.3, 2.4 and 2.5.

Furthermore, ASOS tries to make each customer unique but united with others through

common values. One of these values is sustainability and responsibility, the chance to

create a circular economy. On the ASOS website and digital platforms there are plenty

of recommendations on how to use clothing properly, how to wash it in the right way in

order to prolong its life, and how to choose more sustainable clothing. ASOS does it

online to attract more people to spend more time and make them become more loyal in

order to build strong customer relationships as a result. People start believing that they

are part of something big and that they are able to make the world better. For instance,

ASOS planned to launch a garment “collection scheme” and recycling campaigns in the

United Kingdom and Germany by 2020. (ASOS 2018.) And they did it.

28

In the company’s annual report it is mentioned that “The ASOS Purpose is to ‘give you

the confidence to be whoever you want to be’. This underpins the product and

proposition we present, the way we do business, as well as the way we interact and

engage with our customers.” (ASOS 2018.) Moreover, they have launched the hashtag

‘#AsSeenOnAsos’ so basically everybody who purchased goods from ASOS would be

able to post in social media what they bought and how they look in it. This means that

ASOS supports its buyers’ tastes and styles. On the other hand, this is a good step to

expand the online audience. People do marketing for ASOS instead of ASOS doing it.

This is a win-win situation since the retailer chooses the best photos and shares them on

its verified accounts. Right under each post there is the link to the application so people

are able to directly purchase featured clothes. (Bradford 2018.) According to Hannah

Clark, who is the Head of Social Media at ASOS, the more people participate in their

hashtag campaign, the more they feel as an inspiration and an example for others. Also,

as with any other company operating online, they collaborate with influencers who

create posts and “stories” about ASOS as a means of advertising to attract more social

media users to check the ASOS profile, website and application (Bradford 2018). This

mostly refers to Chapters 2.9, 2.8, 2.3 and properly approves the information from

there.

ASOS presents its new branded collections online by making releases. Thus, in 2018

ASOS made approximately 2,900 releases in their digital accounts illustrating new

collections, fresh customer features and updates in the shopping experience (ASOS

2018).

Likewise, since ASOS does not have the retail shops but only online ones, it wants to

provide its clients with many opportunities to pay for the goods. ASOS wants their

customers to feel safe and free to choose any option they want. For example, ASOS has

added Google and Apple Pay, and are working on the Afterpay and Yandex Payment

options (ASOS 2018).

Additionally, crucial parts of investments were directed into the data science, artificial

intelligence (AI) and analytics platforms. Thus, ASOS main platforms have got more

efficient recommendation algorithms and interactive interfaces. In a nutshell, ASOS

29

platforms are able to understand and reply to customer commands, both voice and text,

for any purpose regarding products or site issues. (ASOS 2018.)

To continue with the key performance indicators (KPIs), ASOS digital campaigns have

brought about the following positive consequences:

● Site visits increased by 19% each year (ASOS 2018);

● Medium order frequency raised by 7% (ASOS 2018);

● The number of active customers is about 18.4 million, with an 19 percent

increase year-on-year (ASOS 2018);

● Student customer quantity improved by 31% since the previous year due to the

global student community marketing campaign (ASOS 2018).

To speak about consumer care KPIs, ASOS policy provides 24/7 customer care service.

In 2018:

● I23.2 million contacts (calls, social media messages, emails and online chat)

were handled (ASOS 2018);

● The Fraud Prevention Team has manage to prevent over £10 million of hacking

attacks among 62,229 orders (ASOS 2018);

● Technical and physical security systems were modified in order to protect

customer personal details (ASOS 2018).

ASOS believes that every consumer is important, so the company has started an

accessible digital platform for disabled people. ASOS has gained such tools as screen

readers, dynamic text sizing and AA contrast ratios to satisfy the needs of everybody.

(ASOS 2018.)

ASOS made retail sales grow 26 per cent with customer engagement due to the

customer engagement constant rise. The financial year 2018 ended with:

30

● 18.4 million active customers, that is up to 19% compared to the previous year,

due to the creative content, social media marketing campaigns and platforms’

modifications (ASOS 2018);

● Web site visits increased by 19% (ASOS 2018);

● There was the 27 percent increase in orders (ASOS 2018);

● Order frequency raised bt 7%, too (ASOS 2018);

● 1 percent increase in the average basket value (this KPI grew five years in a

row). (ASOS 2018).

Finally, ASOS keeps the customer engagement and social media marketing strategy as a

priority. The steps are:

● To emphasize creating and developing an engaging ASOS digital experience

(ASOS 2018);

● To develop a customer care team in order to provide direct feedback and advise

on all aspects of the digital experience (ASOS 2018);

● To focus on the latest market and technological trends to provide the better and

more convenient service(ASOS 2018);

● To continue the IT Security and Data Protection teams improvements, to always

meet the policy requirements and make the customers 100% safe with their shopping

(ASOS 2018);

● To build even stronger client engagement: e.g. “active customers +19%, average

basket value +1%, order frequency +7%” (ASOS 2018).

4.3 Findings

ASOS has strong and effective customer relationships and social media marketing

campaigns that have both advantages and disadvantages. This subchapter is created to

sum up all the essentials from their related activities from the previous part of Chapter

4.

First of all, ASOS was launched in the 2000s and now it focuses on the 20-something

age group. This brings to the conclusion that the company not only tries to widen its

31

audience but also tries to keep customers that were growing with ASOS. Thus, this is an

example of loyalty from and to the customers. Moreover, ASOS retains strong customer

relations by frequent website modifications, new tech tools, constant assistance and

attention to the feedback.

Secondly, ASOS is one of the global leaders among online retailers who sell both

branded and own apparels and accessories. Obtaining the reputation of an online

retailer, they do mostly online advertising and launch numerous social media campaigns

that actually work and expand the customer groups that in the end raise revenue. This

statement correlates to Chapters 2.3 & 2.5, which describe social media as a marketing

tool and social media global megatrends. Lately, ASOS has increased the number of

active online users and sales year-on-year due to the successful and frequent social

media activities and investments into marketing. This statement correlates to Chapter

2.6 and 2.9, which describe consumer behaviour nowadays.

Thirdly, the major way to get attention for ASOS is social media channels. The

company has created an organic customer engagement. On the contrary, users actively

participate in the campaigns, use the tips and recommendations and bring new

audiences to ASOS and get in the process of strong customer relationships. Thus, ASOS

made these two fields of customer engagement and social media marketing

management work for each other, influencing each other almost automatically.

5 CONCLUSION

The chapter, firstly, describes the significant aspects of the empirical study. Then, the

suggestions and recommendations for further research of the topic are provided. Finally,

the summary of the thesis ends the thesis paper.

32

5.1 Essentials of the findings

The crucial aspects of ASOS’s marketing focus on digital campaigns and policies that

are reviewed and connected to the customer engagement and consumer

decision-making process. Due to the scarcity of the data sources it was challenging to

compare the information and make conclusions, but the logical connections and

statements of the ASOS representatives in the annual reports made it possible to draw

several conclusions. Despite the study limitations, the fact that ASOS invested a lot of

resources into marketing and especially into digital marketing and social media

marketing campaigns was obvious and proved. This statement was based on examples

of online activities such as, for instance, frequent posting of “stories”, launching

hashtag contents and attracting influencers. Being one of the top global online retailers

binds over to keep the strict policy of online engagement with the clients in order to

attract them and conquer their loyalty to the brand. The necessity of these actions was

described in the statistics and financial statements from the ASOS Annual Report 2018,

where the users’ activities, general sales and average sales per buyer were indicated

with a dramatic increase compared to the past years. All in all, the results of the digital

campaigns were impressive and positive and provided the conclusion that ASOS is on

the right path in social media and on its e-platforms.

Furthermore, the topic of the consumer decision-making process was learnt and

reviewed in the case of ASOS. One of the key factors and motives influencing this

process is the security and protection of personal information. ASOS invests huge

amounts of money into developing data science and cyber protection to provide its

customers with the highest level of defence. To add, the retailer ensures 24/7 online help

via platforms (website and application), live chats, calls, emails and messages, so if

anybody gets a question regarding products or any other issues they are able to solve it

almost immediately. Moreover, ASOS frequently launches sales and different price

drops such as, for example, student discounts, and advertises them via online channels.

It also causes the inflow of trustworthiness that affects the decision process. It is

described more specifically in Chapters 2.8 - 2.10. Next, ASOS follows the global

megatrends such as sustainability, circular economy, being oneself, etc. It actively urges

people to make the world better, use recycled materials, prolong clothing life cycles,

33

express themselves and wear whatever they are willing to wear. Such actions cause

added value that consumers would like to see in the brand and would like to keep

purchasing with it. To sum up, it is possible to state that ASOS makes everything

possible to maintain the reputation of a respectful brand in order to make people buy

their products, and, since the sales are up, it succeeds.

Regarding the question in the thesis topic “How does social media marketing affect

sales and consumer decision-making process?”, the answer is also in Chapter 4. By

completing a proper and qualitative social media marketing campaign with unique and

modern features, people would get attracted to the brand and would even help to expand

its popularity. It would speed up the process of decision-making (see Chapters 2.7 &

2.8). Speed and effective online support would multiply the chances to gain a wider

audience (see Chapters 2.7 & 2.8). Easy, clear and protective process of purchasing

would impact the consumers’ decisions (see Chapters 2.7 & 2.8). The ability to refer

potential clients from the social media channel to the website or application would

increase sales (see the entirety of Chapter 2). The ability to sell directly in the social

media channels will also raise sales. To conclude, knowledge of the target audience’s

online behaviour was useful for ASOS in order to launch plenty of successful organic

digital campaigns, knowledge of their consumer needs influenced the behaviour of their

consumers in a positive way. As a result, consumer decision processes and social media

marketing made win-win situations and helped each other autonomously and caused

increases in sales.

5.2 Suggestions for further research

After studying social media and its connection to huge enterprises and its impact on

sales and consumer decision-making process, few suggestions for further research

arose. ASOS is one of the most influential retailer brands at least in Europe, and its

need in social media and professional digital marketing is vital to be able to keep active

customer engagement. On the other hand, it would be useful and interesting to learn

what the average ASOS customer thinks about the brand, if he/she really cares about

ASOS advertisements and social media channels, and why he/she chooses specifically

34

ASOS among the dozens of other retailers. Other significant questions are how does

ASOS know what the audience wants to see, how are people going to react, how do

they avoid repetition and what are their competitive advantages. Such information from

inside could open many more opportunities in studying this case. Unfortunately, ASOS

generally does not provide researchers with such information. Appendix 5 shows

ASOS’s policy of providing information.

5.3 Summary of the thesis paper

The goal of this thesis was to research and obtain the most fresh information of such

definitions as social media, consumer behaviour, and the decision-making process.

Furthermore, the additional objective was to identify that social media platforms are

most attractive to businesses nowadays and that they help to boost sales by speeding up

the consumer decision-making process. To add, the final aim was to understand how

such successful retail companies as ASOS use social media platforms to increase brand

awareness, maintain customer loyalty, influence the decision-making process and raise

revenue.

First of all, the theoretical background was analysed. To be more specific, the terms

social media and Web 2.0 were defined. After, five social media platforms (Facebook,

YouTube, Instagram, Twitter, Linkedin) were chosen and described. Then, social media

& consumer behaviour Megatrends were touched to understand what drives the

decision-making process today. Also, consumer behaviour, its theories and

decision-making process were taken into account to describe how consumers behave

and decide what should be bought now.

Thirdly, qualitative and quantitative approaches were analysed. The conclusion stated

that this specific research mostly included qualitative data with some quantitative ones.

This is called the mixed methods approach.

In the beginning, ASOS’s activities and ideal customer profile were mentioned. Then,

ASOS’s social media activities were analysed. Moreover, ASOS’s strategies in terms of

35

social media marketing with the outcomes were open. In a nutshell, ASOS operates

only online, and this helps to increase sales year by year. Statistics from several annual

reports were attached. The outcomes: site visits increased by 19% yearly, order

frequency increased by 7%, and active customers’ rate increased by 19% yearly.

REFERENCES

Abimbola, A. 2019, The Role of Social Media in Decision MakingMauc Online,https://mauconline.net/the-role-of-social-media-in-decision-making/

Alexa Internet, Inc., 2019, Youtube.com Competitive Analysis, Marketing Mix andTraffichttps://inlnk.ru/rZdnY

Shorten, A. & Smith J. 2021, Mixed methods research: expanding the evidence baseBMJ Journals, Evidence Based Nursinghttps://ebn.bmj.com/content/20/3/74

ASOS, 2010, ANNUAL REPORTS AND ACCOUNTS 2010https://cutt.ly/jnmleXu

ASOS, 2017, ANNUAL REPORTS AND ACCOUNTS 2017https://cutt.ly/jnmli2S

ASOS, 2018, ANNUAL REPORT, 2018https://cutt.ly/EnmlpHB

Bernstein, R. 2018, Top Consumer Behavior TheoriesHusson University

Bradford, A. 2018, #AsSeenOnAsos - How ASOS Engages Customers viaSocial MediaWaterloo, Social Media for Business Performance

BusinessDcitionary.com, 2019, Decision Making Definitionhttp://www.businessdictionary.com/definition/decision-making.html

Chaffey, D. 2021, Global social media research summary 2021Smart Insights,https://www.smartinsights.com/social-media-marketing/social

Chand, S. 2021, YourArticleLibrary the next generation library, Consumer behaviour:Meaning/Definition and Nature of Consumer behaviour,https://www.yourarticlelibrary.com/marketing/market-segmentation/consumer-behaviour-meaningdefinition-and-nature-of-consumer-behaviour/32301

Chatterjee, K. 2014, How Can Social Media Be Used as a Marketing ToolB2B Marketing,https://www.b2bmarketing.net/en-gb/resources/blog/

36

how-can-social-media-be-used-marketing-toolCollins, K. 2018, Online customer behavior in 2018: Where consumers browse andpurchase,

ClickZ Marketing Technology Transformation,https://www.clickz.com/online-customer-behavior-2018/218754/

Danziger, P.N. 2019, 5 Global Consumer Trends For 2019, And The Brands That AreOut In Front Of Them, Forbeshttps://www.forbes.com/sites/pamdanziger/2019/01/13/6-global-consumer-trends-and-brands-that-are-out-in-front-of-them-in-2019/?sh=2ddf697b4fe4

Dr. McLeod, S. 2020, Maslow’s Hierarchy of NeedsSimply Psychology,https://www.simplypsychology.org/maslow.html

Dr. Stumpfegger, E. 2017, Qualitative Versus Quantitative ResearchMunich Business School of Applied Scienceshttps://www.munich-business-school.de/insights/en/2017/qualitative-vs-quantitative-research/

Driver, S. 2021, Twitter for Business: Everything You Need to KnowBusiness News Daily,https://www.businessnewsdaily.com/2017/qualitative-vs-quantitative-research/

Dufva, M. 2020, MEGATREND 4: Technology is becoming embedded in everythingSitra

Facebook.com, 2004, Facebook’s Mission Statementhttps://investor.fb.com/resources/default.aspx

Gageler, L. & van der Schee, J. 2016, Jonkoping UniversityProduct Placement on Social Media

Gilhan, C. 2015, The role of social media in B2B buyers’ decision makingB2B Marketing,https://www.b2bmarketing.net/en-gb/resources/blog/role-social-media-b2b-buyers-decision-making

Grabowski, P. 2017, Key Factors Influencing Online Consumer BehavioreCommerce Insighters,https://clck.ru/VKxVV

H&M, 2021, The Garment Collection Programm,https://www2.hm.com/en_us/women/campaigns/16r-garment-collecting.html

Infiniti Research, 2019, Top Global Consumer Trends Shaping Consumer BehaviorёInfiniti Research,https://www.infinitiresearch.com/thoughts/top-global-consumer-trends-shaping-consumer-behaviour

Jokela, R. 2013, Vaasa University of Applied Sciences, Social Media - Brand BuildingTool

Mehta, K. 2020, Contemporary Theories of Consumer Behaviorhttps://thestudentssocietyofsocialsciences.wordpress.com/2020/08/24/contemporary-theories-of-consumer-behaviour/

Abraham H. Maslow, 1987, Motivation of Personality (3 edition), 64-71Mason, S.A. 2019, Qualitative Versus Quantitative Approaches

Springer,Volkmar, F., Encyclopedia of Autism Spectrum Disorders,

Moreau, L. 2021, What is Instagram and Why Should You Be Using It?

37

Lifewire,https://www.lifewire.com/what-is-instagram-3486316

Nations, D. 2020, What Does ‘Web 2.0’ Even Mean?Lifewire,https://www.lifewire.com/what-is-web-2-0-p2-3486624

Nations, D. 2020, What Is Linkedin and Why Should You Be on ItLifewire,https://www.lifewire.com/what-is-linkedin-3486382

Nguyen, T. 2019, What is Marshallian economics?Quora,https://www.quora.com/What-is-Marshallian-economics

O’Reilly, T. 2005, Web Squared: Web 2.0 Five Years On,WHAT IS WEB 2.0

Power, D. J. & Phillips-Wren, G. 2011, Journal of Decision System 20(3):249-261Impact of Social Media and Web 2.0 on Decision Making

Radcliffe, D. 2018, 5 global social media trends to know,IJnet, International Journalists’ Network,https://ijnet.org/en/story/5-global-social-media-trends-know

Saleh, K. 2019, Online Consumer Shopping Habits and Behavior,Invesp,https://www.invespcro.com/blog/online-consumer-shopping-habits-behavior/

Spencer, J. 2021, 101 Social Networking Sites You Need To Know About in 2021,Make A WebsiteHub.com,https://makeawebsitehub.com/social-media-sites/

Tankovska, H. 2021, Number of social network users worldwide from 2017 to 2025,Statista,https://www.statista.com/statistics/278414/number-of-worldwide-social-network-users/

Tankovska, H. 2021, Number of social network users worldwide in 2020, by region,Statista,https://www.statista.com/statistics/454772/number-social-media-user-worldwide-region/

Tankovska, H. 2021, Most popular social networks worldwide as of January 2021,ranked by number of active users,Statista,https://www.statista.com/statistics/272014/global-social-networks-ranked-by-number-of-users/

UKEssays.com, 2015, Company Analysis of ASOS,UKEssays,https://www.ukessays.com/essays/marketing/company-analysis-of-asos-marketing-essay

Appendix 1

Figure 1. The table showing the increase of active mobile social users. (Figure 1)

Image source: http://staunstrup.se/wp-content/uploads/2018/02/was18a.jpg

Appendix 2

Figure 2. The chart demonstrates an increase of using different social media platforms by a single

person.

Appendix 3

Figure 3. The pyramid explains Maslow's hierarchy of needs within five levels.

Appendix 4

Figure 4. The figure explains both external and internal factors and how they move a consumer

towards the buying decision.

Appendix 5

Picture 1. The reply of the ASOS Team with the description why I cannot be provided with the

internal and detailed information regarding ASOS buyers.