The Influence of Social Networking, Thesis Paper Example

The Influence of Social Networking and Traditional Word of Mouth Marketing in relations to Online Buying Behavior of Malaysia Internet Users versus Malaysia Internet Buyer

Abstract

The social networking platform has grown to epic proportions in Malaysia. The social networking and WOM have been making quite an impact on the Asian buyer Internet purchasing behavior.  The number of overall Malaysia Internet users has increased which is significant because the Malaysia number of Internet buyers have a direct impact on the social networking statistics in Malaysia. The paper will look at the impact of WOM and social networks while determine the relationship between Malaysia Internet users to Malaysia Internet buyers.

List of Abbreviations & Terms

Word of Mouth (WOM)

Comscore : Technology company that measures what people do the digital world

Social Bakers: Technology company that measures social media and brands

Nielsen Inc.: Measures media online audiences Malaysia

Twitter-Social Network

Facebook: Social Network

Cyberspace: Electronic medium of computer networks,

Kuala Lumpur: is the federal capital and most populous city in Malaysia

Chapter I

Introduction

The online social networking has become engraved in the fabric of Malaysian society. The online social networking allows anyone from any age group to connect with other friends and business associates online.  The most common social networking communities are Twitter, and Facebook. Our definition of social networking activities included both online activities (Face book, Facebook, and IMing) as well as text messaging (Davilia, 36).The consumer has the ability to create a free profile and their own fanpage that allows the member to build a profits or posts photos. The consumer can add or delete friends or find their favorite products online or read reviews to determine which one has the best price. Today, social networking in Malaysia is the primary was of communicating with the Internet, cell phones or email. In the dawn of social network dominance, Malaysian social networking sites have become the major source delivery for products and services to Malaysian Internet users and Internet buyers online. In the new social networking age, the Malaysian online population is flocking to the Internet to purchase products and services. Social networking is taking over the way people research and purchase products and services in Asia. According to Nielsen, in Malaysia have more than 12 Million online users belong to some community. In terms of social networking (Digital Media Across Asia, 2012).

The traditional WOM still has an impact on the marketing and sales of a new product or service. However, the dynamics have changed on how social networking marketers evaluate traditional ways of reaching customers by word of mouth versus social networking. However, the important factor to consider does the total number of Malaysian online users has a relationship to purchasing versus Malaysian Internet buyers.  Compulsive buying of consumer goods increasingly occurs in conventional shops and stores, but has also started to emerge when people buy goods or services online (Dittmar, Long& Bond, 2007).The Malaysian marketing methods used in the past to deliver products and services to consumers have drastically changed from the newspaper, radio, and television advertisements. The Malaysian male and female consumers have gravitated towards the Internet because they enjoy the Internet experience while searching for products and services using social networking platforms like Facebook, and Twitter – two of the most used web portals in the world (Media Bistro (2012).

The Facebook and Twitter in Malaysia has changed the face of social networking because WOM plays an integral part in influencing the Asian buyer habits. The social network platforms have an opportunity 24/7 to present different goods and services like a commercial reminding the Malaysian consumer on which product to consider. However, the power and influence of the WOM is just as relevant because the change in buyer behaviors and marketing techniques that measure the social networker buyer likelihood to purchase or “like a product. The social networking features ‘Likes” has change the foundation of buyers purchasing habits because marketers have developed a real time indicator whether the Internet shopper likes a specific product. However, more importantly, the marketers have narrowed down likes to buyer tendencies by individual and culture. There was a recent study performed by Power Net Global (2012) that indicated that the social networking industry should not underestimate the social media influence concerning the products and services buy online. Everyone knows word of mouth advertising always wins, but now social media has the power to influence consumers to buy certain brands according to what their family and friends likes& follows (ISPOS, 2012).

Online social networking is fast becoming engraved in the fabric of Malaysian society. The online social networking allows anyone from any age group to connect with other friends and business associates online. Social networking is the classification of people into specialized groups of friends, for instance quaint remote cities or a surrounding area subdivision. Even though social networking is feasible face-to-face, particularly at the office, educational institutions, and universities, it is extremely acclaimed online.  Social networking is the practice of broadening the number of one’s internet marketing business and/or networking acquaintances by developing communications through people. Even though social media marketing has progressed on virtually as long as communities themselves have existed, the phenomenal possibilities of the World-wide-web to encourage such communications is exclusively currently becoming completely distinguished and taken advantage of, by using Cyberspace communities like Facebook and Twitter to influence online buyers.

Our definition of social networking activities included both online activities (Facebook, Twitter, and Skype) as well as text messaging (Davilia, 2011).The Malaysia consumer has the ability to create a free profile and or own fan page that allows the member to build a profits or posts photos. The consumer can add or delete friends or find their favorite products online or read reviews to determine which one has the best price. Today, social networking in Malaysia is the primary way of communicating with the Internet, cell phones, or email. Social networking has several different definitions according to the individual, group or community is presenting the concept. Nowadays, we can explain the Facebook and Twitter online community as the combination of women and men formed together into individual communities, frequently for instance tiny local community or a local area. Although social networking is achievable face-to-face, specifically in colleges or in the work environment, this is numerous prominent on the World Wide Web.  It is because contrary to most high educational institutions, universities, or businesses, the world-wide-web is made up of millions, if not more, of individuals who will be trying to meet other internet purchasers and develop friendships. With regards to online community on the web, internet web sites are used. These kind of online resources are best known as social networking web sites. Social networking internet sites are, in a manner, like a web-based population of internet consumers. Dependent upon on the social networking internet site mentioned , plenty of these on the online world community account owners share a common connection , no matter whether that bond be hobbies and interests , religious beliefs , or state policies . Anytime you are given connection to a social networking internet site you can begin to fraternize. This socialization occasionally include reading through the people or profile page posts of other users or simply getting in contact with them . The friends that you may put together are merely one among a variety of benefits to social networking through the web. Yet another one of these positive aspects contains diversity. Unlike in many educational facilities or office facilities, the world-wide-web presents men and women, from around the globe, communication to social networking sties. This indicates despite the fact that one are in the United States, you could establish an online friendship with an individual throughout the world. Not only will certainly one put together a new acquaintance, one but might also discover a thing or two concerning a new civilization.

A basic understanding that a relationships exists between social networking and sense of belonging is evident in literature, demonstrating that relationships as being important to the well being for men and women (Brown, 2012).The social networking is a place for men and women to feel a sense of belonging to a group such as the social networks like Twitter and Facebook. The social aspect has enter the news, movies, political, business and personal platforms from a psychological standpoint of having the need to check the email to see what news or new friend has joined their network. The social network is an addicting relationship that each person that has a social networking account feels compelled to build a relationship with friends as well as new subscribers joining the groups with the same interest or ideas.

The face-to-face relationships are quite different because the actions or results that be taken for an online relationship. The consumer has the ability to block, delete, or limit access to his or her own social networking platform. This platform gives the consumer a sense of control over who has access to their profile. In contrast, face-to-face confrontations can lead to some unwanted conclusions. The social networking link to relationships with men and women is developing into a great tool for the marketing guru is to analyze to better understand the behavior associated with these buyer behaviors. The benefits of the social networking far outweigh complaints about the addition of the Internet and social networking platforms. However, no one can deny the amazing speed that social networks spread information using the social network platforms and WOM. The Malaysian social media networks can reach a consumer in minutes or seconds using real time Internet services such as Twitter and Facebook. Social Networking is a very effective media in Malaysia because it develops a personal relationship with consumers. In addition, Social media distributes information rapidly while providing advice on life, products, services, and goods.

WOM methods in Malaysia are still one the most used tactics by the market because WOM can account for a large portion of sales. The close-knit dynamics of Asian families contribute to staggering sales results.  The understanding of the theory is that friend’s trust other friend’s opinions in Malaysia, through the derived relationship within virtual communities – concerning products or services, for which decisions are made online. The social networking platform can build new relationships as well as reach out to old relationships in the past. It is no denying the impact of the Malaysian consumer on Facebook, and Twitter as the most powerful form of communication using social networking membership sites (Hui, 2008). This is the new way to stay connected to family, co-workers, friends and meet build new business or personal relationships. WOM works very well with those who are looking for a college to attend. Most friends will ask other friends about which college to choose on line. More people are using the computer to handle their daily business transaction such as bill paying, mortgage payments, loans, appointments, and job hunting. However, Malaysian social networking has begun to change the way people communicate, including WOM avenues. Within the striving industry today, marketing professionals and analysts are not convinced that WOM is the underlying catalyst behind the gradual rise for the social networking numbers. Marketing managers have indicated it is hard to measure whether the sale was made because of online advertising and marketing or if a friend suggested they purchase a product. The new technology advances has changed the face of social networking and the value of WOM marketing methods.

WOM was the number one way marketers believe the consumer would purchase more products. Many people tend to ask a friend before making purchases because consumers have been buying products for years based on friend’s recommendations. It has been argued that WOM is the reason for the success of the social network memberships because they are sharing their buying habits and favorite places to shop with their friends and family. The Malaysia social networks are becoming a major force in advertising and marketing to customers on the Internet as well as its significant rise in revenue. According to SKMM (2012) Facebook, of course is the current hot social network in Malaysia. Some 100,000 Malaysians are joining Facebook every month, on top of the 1.4 million Malaysians who are already on board. Social networks are personalizing the experience and their products for consumers, while providing more opportunities for marketers and businesses to present their products to consumers online. The best example in comparison is the Nike versus Adidas marketing strategies to cater to specific social networking groups to improve Nike and Adidas sales during the Olympics. According to Adage (2012), Nike created a buzz commercial online using YouTube that received over 4.5 million hits online while using social networking to reach internet users and internet purchasers.  As we all know, the Internet is full of impulse buyers that purchase with very little inducement. The Malaysia digital growth allows consumers to utilize Wi-Fi, IPhones, computers, cell phones, and other forms of media technology. In the new marketing game, the advertisers are looking for innovative methods to teach reach new consumers. The marketing companies are offering free MP3 player and other incentives to join the social network. These incentives introduce new goods and services but more importantly, the marketing companies get the consumer to opted-in or agree to receive regular updates and information from specific companies. The marketers understand the power of suggestion and the WOM method within any community. If the family is shopping online or in the mall they will recognized a name brand, which will encourage the family member or friend to buy a product just because a friend has heard of the name and reputation. There are number studies that indicate the WOM method is still just as valuable as the social networking methods such as Facebook and Twitter platforms. The advent of the Internet age spawned a new breed of consumers, who spent the days and nights on this new place to meet find and share information. Facebook has risen to new heights in the Asian countries which owner Zuckerberg has mention in an interview in 2011. Zuckerberg writes simply, “I’m trying to make the world a more open place. The site is now the biggest social network in countries ranging from Indonesia to Colombia. Today, at least one out of every fourteen people in the world has a Facebook account. Zuckerberg (Vargas, 2010). The realization that the market is developing inexpensive platforms like digital technology, YouTube options, video conferencing, game programs and virtual platforms that can reach the Malaysia population regardless of the consumers choice of digital or technology preferences. Digital and video options are gaining acceptance with online consumers, which YouTube is listening. YouTube has launched localized services for the Malaysia Internet social networkers (Tech in Asia, 2012).

Social Networking

The global social networking service has grown so large that marketers are rethinking how consumer purchases services or goods on the Internet. The Malaysia online platform focuses on building a market place for consumers to be social while seeking advice, jobs, cell phones, education, and other products that the consumer may purchase. The makeup of the social network starts with the consumer or member building a personal profile on Facebook or Twitter. The Malaysian consumer enters some basic information however; the social networks are asking for and receiving more information such as hobbies, interest, and car buying habits, education level, and financial salary range.  Marketers are becoming more sophisticated in their strategies toward targeting consumer’s needs to ensure they purchase more often online. The IMC marketers use a balance marketing targeted strategy using a combination of marketing avenues such as direct marketing to social networks, digital media channels, and providing a specific brand that the online shopper has already share that preference.

The IMC strategies gathers the specific needs and wants information on the online consumer to determine which targeted plan will work the best. Example, if the Malaysia online shopper has shared in their profile that they want Glade air fresher, the IMC marketing campaign can concentrate on products they know the online shopper is purchasing. The IMC marketers can turn this information on buyer’s tendencies and turn them into Internet buyers. . In addition, social networking is building a new infrastructure that is replacing the everyday shopping mall experience, where you make purchasing decisions or find out where the best restaurants are, at the comfort of your own home. Online social networking communities are generating billions of subscribers that join because of shared interests, which is also the reason why smaller business are able to thrive – people are conforming more niche products and services that allows the consumer to be creative, but more importantly communicate directly on what they want. Malaysian Social networking websites allow consumers to communicate with the world in a variety of different platforms but more importantly, social networks and the act of social networking is ‘open around the clock’ – allowing a global feed of constant information and sharing between virtual communities. The social networking web-based society has made it possible for the entire world to share personal, family, economic, professional, and political views across a wide variety of forums.

Malaysian communication channels has increased since the Social Network media platforms has grown using email, cell phones, Skype, video conferencing,IPhones,Nooks. The Malaysia Internet capabilities and online communities are using every form of media communication devices to make purchases.  Malaysian social networking is creating a real-time platform with additional features such as voting, surveys, consumer contact campaigns to name a few. Social networks are providing a plethora of way for consumers to communicate on the information highway. Some consider virtual communities as groups of people sharing ideas and information, as old channels of communication lack the ability to communicate uniformly, according to the consumer’s wants and needs. Malaysians are officially social media addicts according to ComScore, (2012, who found that social networks accounted for one third of the time spent online in the country in August. The Malaysians populations have such a significant increase in users, increase in usage time online and increase in Malaysia Internet buyers. There are many factors that determine the buyer habits, however, the available research found the number of Internet users versus the Internet buyers that may have some significance in providing some answers on the buying habits of Malaysia online consumers. Interestingly, In Malaysia, “Facebook is listed as the country’s second most watched video content site. Though YouTube occupied the top spot with almost 9 million unique visitors from the country, Facebook notched 4.1 million video viewers – which are impressive considering it is not a video specialist (TheNextWeb, 2). It will be interesting to observe how Face book’s video viewing progresses in Asia where the social network continues to grow steadily. Coupled with growing access from mobile devices, social media in Malaysia is vastly becoming the sole avenue for media related content and its video sharing content over the platform at increasing rates (TheNextWeb, 1).

Twitter

Malaysia’s social media statistics reached a great milestone last year. The Facebook Malaysia consumers are reaching record numbers with the Facebook platform. The Facebook users have exceeded 12 million in Malaysia since Decem­ber 2010 and the Malaysian Twitter users have exceeded 470,000 in October 2010. Today, Malaysia has over 1 million users of Facebook in Malaysia (TechinAsia, (2012). Friendster said there are 2.2 million active Malaysian users on its social network. In December 2008, Twitter Facts estimated a total of 3,429 Twitter users in Malaysia. TwitDir have a total of 4,013,391 accounts and 2,231 of them with ‘Malaysia’ within their location detail. (Grey Review, 2).

Active digital consumers in Malaysia predominantly use Facebook, according to the above metric. It also shows that Blogger and Youtube are more popular in Malasyia then Twitter among active digital consumers.

Facebook

The Facebook platform is one the most active social networking platforms on the Internet with plenty of competition with Twitter. However, these virtual entities also work simultaneously. Facebook is a type of WOM vehicle but it is taking it to another level with notoriety – whether if it is a conversation at work or chatting with friends, the general concept of social networking is always adding friends and sharing your personal interest with each other.  Facebook is approaching 80 million members and with sign-ups at an insane pace of 2 million weekly (Bulik, 1).  The digital world of Social Networking is evolving every day creating a new way consumers can find goods and services that cater to their specific profiles. The online industry is trying to determine which is the better driving force between the already proven WOM or social network platforms. The social revolution has begun with the new membership technology that tracks a personals likes and dislikes on social networking platforms. The social networking marketing methods always target consumers that have the highest usage levels. This leads to the success of membership based social networking. The social network has the real time data on when they sign on, what they buy what offers they turn down and when they like to shop. All this information is saved in real-time and it refreshes each time the consumer refreshes their screen based on their tendencies. The real genius of Twitter and Facebook is they are able to consistently create a viral buzz for all their current and potential new customers using many different referral methods or gifts methods. The members get discounts and special gifts for referring a friend to the social network. This means the social networks are the best at presenting their products and goods brands to the teenagers, children, and adults. The online businesses are following the leaders by spending more revenues for Internet marketing efforts that will improve the quarterly sales numbers.   It is fascinating to note how Facebook rose to this level, surpassing media power by web giants Google and Yahoo. In the last one year, Facebook grew 34 percent with a total number of profiles to 130 million, making itself a high visibility website for brands to advertise (McDermott, 22).  The new model of advertising and marketing is building social network communities, providing all the essential guidelines for novice users to spend all of their time in a specified network site that provides all the available applications they need.

Fig1

Mobile Market

The above chart demonstrates that the average daily online sessions in Malaysia occur more than 2-3 times per day. In fact up to 44% of the smart phone users who access the internet do it all day in Malaysia. The majority of internet use on Smart Phones in Asia is done on Symbians in Malaysia instead on Android.  The main information that can be taken from this is that while smart phone use is a global trend, each respective country, especially in the east utilizes the new technology for different key purposes and they favor different providers. As Salehi notes, “the growth of Internet technology in Malaysia has enormous potential as it reduces the costs of product and service delivery and extends geographical boundaries in bringing buyers and sellers together (Salehi, 2012, p.394).” Salehi goes on to point out that over 76% of Malaysians, specifically young people use the internet to play games, for entertainment or communicate. A large majority of these users access the internet through smart phone devices.

Fig2

This data retrieved from outmobileplanet.com reveals the most popular activities for which Malaysians use their Smart Phones. The top six activities include: browsing the internet, checking e-mail, social networking, taking photos and recording videos, listening to music and playing games, the most popular of these, of course, being browsing the internet. This data indicates that Malaysians have adopted the western trend of using digital phone devices more for accessing digital media than for traditional telephone use.

While internet use is on the rise in Malaysia, e-mail use is actually in decline. The explanation for this trend could be an increase in social media use as tools like Skype, Twitter, Facebook and LinkedIn, provide users with ample communication tools to exchange information in the form of direct engagements or shared data.

Fig3

The above chart shows the impact of social media in Malaysia on consumer decision making. It shows that a large majority of Malaysians are significantly influenced by the opinions of their friends on social network sites, specifically when it comes to consumer product endorsements. As social networks are the fastest most empowered method of spreading word of mouth today, it can be assumed that in Malaysia social network advertising is highly lucrative and marketable. Top brands in Malaysia are growing more aware of this trend as well.

Integration of social media channels with company websites in many countries in Asia, brands are keeping their social media efforts very separate from their other online presences. But why not bring them closer? As authors note, “the use of Twitter is gaining popularity among enterprises. Astro, the subscription-based satellite TV provider, is the one and only Malaysia’s big brand on Twitter (Hui, 2008, p.1).” Another brand worth noting utilizing social media is Maybank. It is Malaysia’s largest bank and it’s also the first bank with a blog for banking Maybank2u.com (Hui, 2008, p.1). All of these companies are taking advantage of the new consumers.

There are numerous digital consumers who have connected or interacted with brands, services, or products through social media within the last 12 months. It shows that there is a major consumer market accessible through social networks in Asia, specifically in Malaysia, the Philippines and Singapore. As previously noted, the most popular social media channel in Malaysia is Facebook, accounting for over 11.1 million.

Statement of Problem

The Malaysia data for online shopper’s buyer behaviors is limited. Most of the research will provide the information for 1 year; therefore, it’s not feasible to compare just 1 year with no data. The Malaysian online data from Nielsen and Comscore was not specific enough to address the comparisons of buyer habits for Asian Internet buyers.

Purpose of Research

The purpose of the research is to determine the impact of Twitter and Facebook when Kuala Lumpur population is making online purchases. The goal is to find out if social networking is a major factor in choosing products by way of WOM and social networking platforms. The research search for a reliable Kula Lumpur reliable database of 200,000, which would be a large enough sample size (Kula Lumpur current population is approximately 14 million (Mongabay.com) Internet users to determine the buyer behaviors in relation to Twitter and Facebook. However, the databases where either outdated or the dated had too many emails unverified meaning the statistical analysis would be skewed unless the population increased with verified Internet users.  The research will use liner regression model to determine the significance of Malaysian Internet users to Malaysia Internet buyers.

Research Questions

The Internet provides much different statistical analysis or reports concerning the Asian buying habits specially the Malaysia buyer habits; however, what is the quantifiable number of the Malaysia population that makes buying decisions on the Internet because of Twitter and Facebook affiliations. The primary hypothesis there is not any relationship with the number of Malaysia online users to the number of Malaysia online purchasers. The alternative hypothesis is there is a significant relationship with the number of Malaysia online users to the number of Malaysia online purchasers.

Significance of the Study

The significance of the study is monumental because Social Networking can provide Asian countries with the opportunity to become more competitive in the business industry all over the world. The world economics can improve is the Asian countries are gaining purchasing power on the Internet. In addition, the research can analyze the true impact of Twitter and Facebook on the Asian buyer’s habits using the social network platforms. There is very little evidence that specifically addresses studies in Kula Lumpur. The information is not as credible depending on who is reporting the numbers such as the Malaysia government or marketing companies or telecommunication companies. Regardless, of the audience no true quantitative data has been presented on the buyer habits of Malaysian population in direct relation to WOM and social networking platforms that pertains to Twitter and MySpace. The available data that compared Malaysian Internet users to Malaysian Internet buyers over 5 years period will be analyze for the significance to research.

Chapter II

Literature Review

The Power Reviews (2011) surveying 1004 people completed a study; the study revealed that men and women with a household income over 100,000 do most of their shopping online at 27 percent.  This is a small indication but important that those using social network use other factors before making an informed purchasing decision. That is 73% that may depend on WOM to make that final decision to purchase (Power Reviews, 2011).

The Internet has been concerned about the safety of consumer personal information. The marketers have found that the more the consumer feels comfortable giving out their credit card information, the more they will purchase. Davila,et al. (2012) found that social networking is related to WOM) and it is impossible to separate them because they are one in the same. Social networking indirectly relates to immediate online purchasing, but purchasing power is also the delayed based on WOM. The research and studies performed by Helou (2002), indicates that Asian students performed better with access to Social Networking and digital platforms. The sample population consisted of the Malaysian university student population concerning the impact of social networking with their education studies, communication and delivery. The previous research analyzes the Twitter and Facebook connections and memberships that were utilized by the Malaysian students. The studies found that social networking usage has doubled because of the digital platforms as well as the university creating a Social Networking platform for all students. The study indicates that many universities were already using the Social Networking platforms long before Zuckerman created Facebook. The university was already proving that the social network platforms increase student, staff and personal usage every year.

The past research findings by Dittmar, Long&Bond (2007), indicated that the consumers are in favor of marketing that helps them make purchasing decisions. Based on those studies the social marketing platforms cater to the consumer’s profile. The profile will give them the person’s age, which gives an idea on what type of product to be promoted or advertised. Location determines what type of region the consumer is from and is likely to affect the types of products advertised according to individual taste.  Hobbies give the companies information on what books they like reading so they can build integrated marketing communication campaigns to meet those needs. The premise of the studies indicated that the customer is always one click away from a sale, if you provide the right incentive. Based on the findings of three surveys carried out in the UK, we propose that the extent to which individuals endorse materialistic values is linked to their compulsive buying tendency (Dittmar, Long& Bond, 2007).

The literature addresses how each consumer is very predictable on what they will buy but more important the marketers want to know when potential consumers will buy so they can plan and strategies for their next promotion or campaign for the consumer. This was one the more relevant studies because it discusses the physiological battle in the mind of consumer during the purchasing process. The authors go on to share how consumers like certain colors or deals that will make them buy every time they are on the Internet. The bottom line the more information you can collect from the consumer, the more you can determine what they want to buy. There is consensus that compulsive buying has three core features: the urge to buy is experienced as irresistible, individuals lose control over their buying behavior, and they continue to buy despite adverse consequences in their personal, social, or occupational lives, and financial debt (Dittmar, Long& Bond, 2007)

The studies completed by Dittmar, Long&Bond (2007), shared that the social network culture will continue to build momentum because the businesses have figured out their buying tendencies. Many social networks are offering various types of freebies to gather personal information and buyer habits, from current and prospective consumers. The big corporations online are following the trend. It is possible to complete all your personal shopping for books, stamps, mortgages and cars without leaving the comforts of home. This literature further reveals that the consumer will continue to make impulsive purchases because we live in a materialistic society and marketers are making it easier and more efficient to purchase products or services. The current consumer cultures characterized by a growing materialistic value orientation: the pursuit of money and material possessions in order to gain image, status, and happiness (Dittmar, Long& Bond, 2007). The literature by Brown (2012), share the reasons why consumers are addicted to the social networking platform. The study indicated that consumers are social animals that are seeking fulfillment in one place. It’s a natural process for the consumer to shop online because of convenience. Brown (2012), discuss predicators which estimate how, when, where and what a consumer will buy online. The predicators or predictions are based on a formula based on each personal profile. For example, if Jane likes books she will receive free offers and incentives from Amazon.com.my or if she likes computers she will get offers from Apple.com.my. The point being made by Brown (2012) in his literature is consumers expect the Internet to cater to their needs. If the marketers or businesses can pinpoint those predictors, they will be able to improve revenues for the business.

The literature presented by Bulik (2006), chose the opposite end of marketing, which is WOM. The research completed by Bulik (2006) indicated that WOM method is more powerful than most people think. WOM method is the primary tool every human being uses to make decisions – where its source may not always be in real time but nonetheless, the method WOM is just as effective as social networking sites. The only thing is that WOM does not get the proper credit, since it is an action that influences change that can be derived from any communication source.  A consumer decides to purchase a television long before they sign on to the social network. Builk (2006), literature introduces some solid theories in support of the WOM methods.

The Nielsen literature is the foundation of the research. The Nielsen. (2012) Social Media Social Networking Report 2007 provides some very clear and precise trends from several points of views including various populations include in the studies such as England, Switzerland and Germany. The literature is not biased and very accurate. The Nielsen reports all support the fact that social networking is more effective than WOM; however, the Nielsen literature allows each person to make a sound decision because the information is presented clearly and easy to read charts and graphs.

The uniqueness of the Nielsen literature is based on the fact they have been presenting these type of reports for years for the United States but now they present information that is based on the how the whole world is impacted by social networking, as well as other internet based media entities. The Nielsen literature provided data from the last 5 years while pulling all available Social Networking statistics into one report. This literature gives the paper credence because no other organization has collected as much real data and in real time. The numbers are not manipulated, which Nielsen goes to extreme measures and cross checks to ensure they have the best accumulation of social networking data in the world. The literature provides an unexpected statistic that is believed no other research has accumulated in one place. The report provides exactly how many minutes the consumers spend shopping online. This information is invaluable to any research concerning social networking because the numbers can now be broken down to the smallest denominator, which validates the data. The same report provides the same data for minute’s usage by digital, music, books, DVD’s and video games.

Related Theories

Mohamed & Hawa (2012), performed research on the perceived behaviors of online buyers that can be influence by incentives on the Internet. The theory based the relationship of men and women in social networks as uncontrollable behaviors that achieve a comfort level because they feel the social network provides a certain amount of Internet privacy that they control. Based on this study the individuals’ buyer habits can be learned by finding their vulnerabilities that make them shop online (Mohamed & Hawa, 2012). The primary goal was to learn the driving factors that determine how and when the consumer makes a purchasing decision based on the amount of privacy they perceived. For example, if the purchase they make is secured enough for the consumer to release their financial information.

In their study, Consumer Attitudinal Insights About Social Media Advertising, the author approaches social media from an Asian perspective. He notes that, “Yaakop, Hemsley-Brown and Gilbert (2011) found Malaysians having more positive attitude towards the advertising than non-Malaysian because of their belief about advertising ability in providing pleasure-seeking and entertaining materials (Mir, 2012, p.269).” Here he points out that Asians, specifically Malaysians have developed a knack for entertaining themselves through the use of social media. In many ways this can be seen in how Malaysians adopt western trends off social network sites. Mir notes that, “If Facebook and Twitter are not enough to show how cute and adorable your fluffy cat is, it’s time to check out Catmoji. Malaysian developers have launched a special social network for cat lovers (“Meow! Malaysia launches social network for cats”, 2013, p.1).”  The western fad of sharing funny cat videos, has not fallen short on Malaysian culture. Thanks to the influence social networks and digital media have had in the region Malaysians have taken it upon themselves to invent their own social network just for cat lovers. This site has developed in popularity, but it also demonstrates the popularity of social media in Malaysia and how it’s being used to leverage new brands.

Brand´s view. (Companies):

In the his article ‘Social Media Marketing and Malaysia’s Biggest Brands” Lim Yung Hui talks about the relationship social media marketing has been developing with Malaysia’s biggest consumer brands. He says, “About 60% of Malaysia’s most valuable brands are leveraging social utilities like Facebook, YouTube and Twitter (Hui, 2008, p.1).”  Hui goes on to point out three industries in particular taking significant advantage of the benefits provided to them by social media. The three main industries Hui focuses on are the airline industry, the retail industry, and the banking industry, all of which he claims the top competitors in those markets are tapping into the power of social Media to leverage an edge.

In regards to the relationship the airline industry has in Malaysia with social media, the author notes that, “the budget airline has the most interesting and purposeful usage social media marketing tools and are ‘designed’ to engage with its target audience (Hui, 2008, p.1).” Utilizing social media as an effective method of engagement between the consumer and the service provider is a marketing relationship that has not been lost to top tier Malaysian businesses. Some airlines have taken it a step further than simple engagement and they have actually invested in web infrastructure platforms to provide additional services outside of air transportation. Hui notes that through AirAsia’s blog the company has been able to set a more conversational tone to the relationship they share with their customers and one that is much more engaging than their competitor Malaysia Airlines’ Living Malaysian Hospitality. The blog is is geared towards providing corporate news, specifically for their business travelers (Hui, 2008, p.1).

Hui points out that many Malaysian banks have taken to providing customer service on Twitter as an alternative location for bank members to engage with the company. “The use of Twitter is gaining popularity among enterprises. Astro, the subscription-based satellite TV provider, is the one and only Malaysia’s big brand on Twitter (Hui, 2008, p.1).” The fast-growing social network is by far the most used social utility among the biggest brands in Malaysia, followed by YouTube. Facebook ranked 8th in Malaysia’s Alexa Top 100 Sites; YouTube ranked 4th (as of Oct 19 2008) (Hui, 2008, p.1).” In regards to the banking industry, the author notes that Maybank is one of the largest most respected banks in Malaysia but it grew to even greater notoriety by engaging is consumers on Twitter. “Malaysia’s largest bank, Maybank, is the first Malaysian bank with a blog; uses its “AllYou” blog to complement its online banking site, Maybank2u.com (Hui, 2008, p.1).” “Tony Fernandes of AirAsia is the only Most Valuable Brand’s CEO with a blog (Hui, 2008, p.1).” These airline barands, as well as consumer oriented retail brands , like Parkson, Bonia, and Padini apparel all develop their notoriety in Malaysia through Twitter marketing. Hui finally notes that “Financial institutions dominated the MMVB list, with 32% representation. However, out of the eleven big brands that are not using social media, six of them (or 54%) are from the financial industry (Hui, 2008, p.1).” This is can largely be credited to the success of social media platforms in the region.

Chapter III

Methodology

Location and Subjects of Study

The study consisted gathering all the population data for Kumala Lumpur however; the databases of specific online users and buyers were unable to obtain verifiable email addresses of Malaysian demographics needed for the study. The second phase of the study gathered statistics from Twitter, Comscore, Neilson and Facebook to determine   which reports are quantifiable with their results, sources, and interpretation. The

Research Approach

The research approach was gathering the Malaysia and Kuala Lumpur social networking databases to send thousands of Internets opted surveys, however, this approach had to be abandon because the reliability factor was too high for an unsuccessful or unreliable data. The Malaysian government had warned to beware gathering data on social networking from Malaysian companies because many were not reliable. The databases are slowing becoming more reliable over time however; the market demand has pushed some of the prices in the thousands. The research strategy changed to  the Malaysia Internet users and Malaysia Internet buyers because they data covers the last 5 years which allowed the use of the liner regression model to analyze the data.

Research Strategy

The research used the simple linear regression is the least squares estimator of a linear regression model with a single explanatory variable. In other words, simple linear regression fits a straight line through the set of n points in such a way that makes the sum of squared residuals of the model (that is, vertical distances between the points of the data set and the fitted line) as small as possible. The research strategy used linear regression models to performed the t statistic, confidence interval 95%, critical value = 3.182 I got the 3.182 number from the Table A.2.

Using B= 95 and dof or degrees of freedom = n-k-1 which is  5-1-1=3

# of observations: 5

# of independent variables: 1

Data Collection

The data was collected from a study completed by Ken Ong, who is an up and coming Marketing expert that provide five year comparison of the Malaysia Internet Users and Malaysia Internet buyers. The study provided a breakdown with enough statics to do a liner regression model. The data was compared to other data for 1 single year to determine if this data had some type of pattern to indicate the information was valid.

Significance of the study

The old school marketers say “Word of Mouth is the best advertising” but that might be challenged with the advent of the social networking platforms. This has been a tremendous paradigm shift towards consumer’s buyer habits using social media platforms to make informed buying decisions. However, very little research has been completed on the significance of the changes. The study has major implications and significance on the social networking changes in the way we do business. The changes are based on companies trying to sell a product to making connections with the target market. As Salehi notes, “the growth of Internet technology in Malaysia has enormous potential as it reduces the costs of product and service delivery and extends geographical boundaries in bringing buyers and sellers together (Salehi, 2012, p.394).” Many marketing companies are good at finding the best social networking strategies however; they do not know which marketing strategies is producing sales. In order to enhance online consumerism in Malaysia, analyzing online e-commerce behavior of consumers and factors influencing them when making these purchasing decisions should be made a major priority (Salehi, 2012, p.395). Is the WOM producing more sales because consumers are influence by others to purchase or have the social networking platforms drive customers to purchase products impulsively?

Empirical Data

The research experimented with the Nielsen data searching for the Twitter and Facebook statistics based on Malaysia. “Researches indicate that majority of Malaysian (76%) specially young people were using internet for non-shopping activities such as seeking for information , entertainment , playing games and communication with others (Salehi, 2012, p.395).” However, it was difficult to drill down Malaysia data for several years for Malaysia buyer habits. The Nielson data was observed to determine if enough statistical data for Malaysia concerning buying habits for Malaysian Internet users and Malaysia Internet purchases.

Chapter IV

Results and Discussion

The Hypothesis: H1 There is not any relationship to the number of Malaysia Internet users to the number of Malaysia Internet buyers? Alternative Ho:  There is a significant relationship to the number of Malaysia Internet users to the number of Malaysia Internet buyers.

In the chart provided: A statistic for Malaysian Online Shopping there is a trend that shows although the number of internet users varies from 2008 – 2012 the buyer power continues to increase. In my Linear Regression, Model R square is 0.87.  The Adjusted R square is 0.74.  This means that 74% of the variable in Y can be explained by factors other than the variables in the model.  R square is the proportion of total variation of the observed values of the dependent variable y that is accounted for by the regression equation of the independent variables.  Generally speaking, the higher the value of R square the better the regression model although there are exceptions to the rule. The coefficients are as follows: The 1^st Linear Regression Model results were: y = 20265206.48 + -0.87953152×1: B1 = For each additional unit increase in the # of internet users, internet buyers increase by -0.879. Performed the t statistic, confidence interval 95%, critical value = 3.182 I got the 3.182 number from the Table A.2,Using B= 95 and dof or degrees of freedom = n-k-1 which is  5-1-1=3: # of observations: 5: # of independent variables: 1

Ho B = 0

Ha Bk not = 0

Reject Ho if the calculated t statistic is greater than critical value

B1 = -0.87953/ 3.6293 = -1.47977E-07. Since -147977E-07 < 3.182, we accept the null hypothesis. This proves that the # of internet users does have an effect on the buying power of internet users. It is not statistically significant.

Had the t statistic been greater than the critical value, we would have rejected the null hypothesis.  This would have proved that the number of internet users does have an effect on the buying power of internet users.  It would be statistically significant.

Chapter V

Conclusion

The conclusion the Malaysia, Twitter and Facebook data for the last 5 years is scattered with either not enough data or not enough data for the specific region or the data only covers Malaysia but not central region of Kumala Lumpur. The data collected from a 5 year study providing enough information to perform a liner regression model to that proved the null hypothesis.

Recommendation and Implication

 The implications about the current research show that additional research is required to drill down the specific regions of Malaysia. The study of the Lumala Lumpur will provide some difficulty in research because there is very limited data and the collecting of the information does not have historically data. The research will be needed to determine the true online buyer behaviors of the Asian region.

Limitation of Study

The limitation of the study is the databases because there are so many unverifiable. The Malaysian online statistics have found to be only from 1 year which does not allow for comparison on the impact of the Internet buyers and Internet users.

Suggestions for Future Research

 The future research should be based on the reputable Malaysian database with customers that have opted to receive surveys. That is the problem with obtaining quality population to survey. The market is demanding thousands of dollars for unverifiable databases with Malaysian and Kumala Lumpur Regions but many of the services are very unreliable. The future research should include finding a population that can be opted consumers that want to complete the information versus sending a survey to an unsuspecting citizen of Malaysia. The next research should be based on college university online users because the data would be easier to obtain for interviews and surveys. Many universities in Malaysia and Kuala Lumpur would be willing to allow a study performed using their student body because the study will give the university exposure.

Results and discussion

The results indicated that the number of Malaysia of internet users does have an effect on the buying power of internet users. It is not statistically significant. According to Nielsen (2012), states that among the Asian countries Malaysia is the 3^rd rank as most users in the last 4 weeks and the last 12 months. These numbers are the most current numbers concerning social networking in Malaysia. The Nielsen Media index indicates that among the Asian Countries Malaysia using the Internet ranks 3^rd in most categories such number of males, number of females, 15-19 years of age,20-29 years of age,30-30 years of age 40years and above. The trends arecontinuing with the ranking of Malaysia with Internet usage for Social Networking websites. Nielsen study indicates that Malaysia is the second most utilize Social Network consumers based on daily, weekly and monthly uses. Malaysian ranks 3^rd amount Asian countries in Social Networking usage pertaining to video usages. Malaysia ranks 1^st with Social Networking digital usage , Ranked number 1 email usage, Ranked number 1 updated social networking profiles, Ranked number 2 for updating social networking comments using the Internet among all Asian Countries.  Malaysia decision to buy products based on interaction with brands, products or companies in the last 12 months Malaysia ranks 1^st as consumers that interact and make buying decisions base done online marketing on Social Networking platforms. Malaysia ranks number 1 among Asian countries when making purchasing decisions based on social networking discussions and online reviews of products and services.The social networking has reached far beyond the United States. The largest growth that occurred was found in the German social market. The German sector reached a 51% of Germans online versus the previous year of only 39% the previous year. The secondary reason these statistics are accurate is because Nielsen gives the population but they also identify which global regions. The results indicate there is a 10 percent increase online in UK, Spain and Switzerland, France, Austria, England, and Germany and United States. Also, the figures show it’s about trust online, if the consumer does not trust you they will not purchase your product. The member community online has broken the mold of slow growth during the slow economy. The numbers show the proof that Social Networking is growing more popular than WOM. There are circumstances where the customer may get the advice of a friend before they make a purchase but the Social Networking is becoming so personal that anything the consumer wants to know about a product or who bought it or who does not like it is available at their fingertips. While WOM will always be a factor in purchasing decisions, however, with these types of numbers, the Social Networking is becoming the leader on the Internet for consumer’s buyer choices. It appears the consumer is spending more time on the Internet in Social Networking communities because the chart shows that Switzerland has over 200 % increase in how much time consumers spend in the social networking communities.

The member community online has broken the mold of slow growth during the slow economy. The numbers show the proof that Social Networking is growing more popular that WOM. There are circumstances where the customer may get the advice of a friend before they make a purchase but the Social Networking is becoming so personal that anything the consumer wants to know about a product or who bought it or who does not like it is available at their fingertips. While WOM will always be a factor in purchasing decisions, however, with these types of numbers, the Social Networking is becoming the leader on the Internet for consumer’s buyer choices. It appears the consumer is spending more time on the Internet in Social Networking communities because the chart shows that Switzerland has over 200 % increase in how much time consumers spend in the social networking communities.

The consumer Generated media reports provide some good statistics for WOM; however, the Forrester respected reports are from 2004. The trust factor is important showing that over 68 percent of consumers trust the recommendation of others. However, the report makes the point that consumer trust from others feedback is not the driving factors for the sale its Social Networking. Malaysia has increased their Facebook usage of the Social Networking platforms in the last few years. Malaysia has 13,154,060 Facebook users in Malaysia, which positions the county as the number 18^th ranked country (Social Bakers, 2012). Our social networking statistics show that Facebook penetration in Malaysia is 50.28% compared to the country’s population and 77.82% in relation to number of Internet users. The total number of FB users in Malaysia is reaching 13154060 and grew by more than 696500 in the last 6 months. Malaysia Facebook demographics are other social media statistics we monitor. The largest age group is currently 18 – 24 with total of 4 472 380 users, followed by the users in the age of 25 – 34. There are 54% male users and 46% female users in Malaysia, compared to 52% and 48% in Japan and 51% and 49% in Taiwan

The Nielsen results indicated that the traditional methods still worked and do not abandoned those ideas. However, the paradigm shift to social networking clearly outperforms the WOM advertising and marketing methods. The biggest growth in social networking is Facebook. This is the temperature in real time if the WOM or Social Networking is providing the best products sales for businesses. The shows the amount of growth by age which shows that more and more adults and teenagers are flocking to the Internet. According to Nielsen, the main users are in the age group 35 to 49. The social networking has reached almost every country in the world. The secondary reason these statistics are accurate is because Nielsen gives the population but they also identify which global regions.

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Appendix 1

B1 = -0.87953/ 3.6293 = -1.47977E-07. Since -147977E-07 < 3.182, we accept the null hypothesis. This proves that the # of internet users does have an effect on the buying power of internet users. It is not statistically significant.

Appendix 2

The liner regression method was based on the degrees of freedo

Appendix 3

Facebook: The rankings by Social Bakers are number 18# for Facebook for Malaysian using social networking. However, Social Bakers primary goal is to analyze any positive shift in social networking groups or countries. Comscore is important because they have a larger population of data from the top media companies that report this data on a daily basis. Comscore studies consist of five types of data collection activities of the 15 largest media companies in the world. The studies are so detailed searching specifically for conversations and choices of users. Four of these activities are run directly on the media company’s website. Each time there is any type transaction between the user computer and one of the media companies that information is gathered. The quantitative data from the Comscore is very accurate because they system is unbiased on the information that are reporting. The results indicate that Twitter is not even close to the number of user’s transaction that Facebook has recorded.

Appendix 4

Facebook: An analysis of top social networks in each of the Asia-Pacific markets included in this report revealed various brand preferences across markets (Comscore, 2012). Facebook.com was the social networking leader in eight of the markets – Facebook has top position in reaching the Malaysia web population.  The Malaysia penetration is 77.5 percent which clearly indicates the Malaysian preferred social networking.

Appendix 5

Central Region: The Comscore August data report that the Central Region which includes Kuala Lumpur was the leader of Internet online usage which accounted for over 54.4 percent of the entire Internet audience along with 51.3 percent of pages consumed and 52.6 percent of minutes spent online for the whole country.

Appendix 6

Malaysia Online Demographics: The Malaysian Internet audience has a reoccurring theme of males utilizing the Internet and accessing the pages over 50 percent more than females. The data shows males 947 views while females had 547 views. The demographic composition of visitors to the News/Information category revealed strong skews toward older male segments. All male age groups, with the exception of the 15-24 year old age segment, reported above average consumption, with males ages 45-54 consuming 114 percent more pages of content than an average Malaysian Internet user and males age 55 and older consuming 183 percent more content than average. Although females consumed significantly less content than males (only 37 percent of total pages were consumed by females), females age 55 and older consumed more than twice as many pages of content as the average Internet user(Comscore,2012).

Appendix 7

WOM: According to Power Net Global (2012), who reported a study by Ipsos Global that measured the impact of the social networking male and females using the “likes” button. The study shows that social media does influence the brands we buy. The findings are that WOM will always win over social networking advertising because WOM is present in the buyer decision because WOM can make that product a household item that will be purchased on an ongoing basis. The social networking is effective in a different way social networking reaches the entire family influencing them to purchase a specific brand based on what the family “likes”.

This previous study is an accurate representation of Internet user’s buyer habits pertaining to the influence of the “like” button selected by a friend or family member. The survey clearly gives a snapshot demographic of Internet users who would buy a brand because a friend “likes” or “follows” on their Facebook or Twitter social network accounts.

Appendix 8

Appendix 9

The statistics for Malaysian Online Shopping shows that the trend for online purchasing is the 2^nd most percent of purchases Malaysian buyers. The trend shows 59.43 percent of the Malaysian Internet community that is buying products and services. The information is credible because the author is a Marketing Consultant Ken On who has a reputation of providing accurate data concerning the Malaysian Social Network growth over the last 5 years. Ong has collegiate and professional following that respects his quantitative and qualitative analysis that was completed during his professional and educational pursuits.

Appendix 11

This study by Ken Ong shows the steady increase in online shopping by Malaysian population, which is enough to speculate that the Social Networking is responsible for this increase including Twitter and Facebook. According to the 2010 Visa E-Commerce Consumer Monitor, Malaysia is ranked number three in online shopping, with the average amount spent over the past 12 months at US$2,006, behind Taiwan and China at US$4,041 and US$2,557 respectively, and among six countries surveyed (Jayaraman, 2012). As of 2010 Malaysis online shopping trends have increased based on the increase in Twitter and Facebook affiliations.

Appendix 12

Facebook Malaysia: This study from Burston Marsteller indicates that Facebook has more market penetration than Twitter. In Malaysia Facebook is the number one social network utilized by Malaysians. The chart shows that over 66% of the Malaysian population uses the internet.

Appendix13

SURVEY

Hello:

You are invited to participate in our survey that we are using as part of our study to estimate the impact of social networking versus the impact of word-of-mouth (WOM) on Asian online buying habits specially the Malaysia buyer habits. Approximately 200,000 people will be asked to complete this survey that asks questions about demographics, lifestyles, and purchasing preferences. It will take only 5 to 7 minutes to complete the questionnaire.

Your participation in this study is completely voluntary. There are no foreseeable risks associated with this project. However, if you feel uncomfortable answering any questions, you can withdraw from the survey at any point. It is very important for us to learn your opinion.

Your survey responses will be strictly confidential and data from this research will be reported only in the aggregate. Your information will be coded and will remain confidential. If you have questions at any time about the survey or the procedures, you may contact us by email at the email address specified below.

1. How are you today?

• Great
• Okay
• Not so good
• I am feeling low today

2. What is your Gender?

• Male
• Female

3. What is your age?

• 15-24
• 25-34
• 35-44
• 45-54
• 55+

4. What is your country of residence?

• Asia-Pacific
• Philippines
• Australia
• Indonesia
• Malaysia
• Singapore
• New Zealand
• Taiwan
• Hong Kong
• India
• South Korea
• Vietnam
• Japan

5. What is your current level of employment?

• Student
• Unemployed
• Self-employed
• Employed part-time
• Employed full-time
• Others

6. Do you have access to the following media?

• The Internet
• Magazines and Newspapers
• Mid market tabloid reader
• Popular tabloid reader
• I have access to satellite/cable/digital TV

7. Have you bought any product or service online lately?

• Yes
• No

8. How often do you usually shop online?

• Almost never
• Sometimes (At least once a month)
• Often (At least once a week)
• Very often (daily)

9. What type of products do you usually buy online?

• Jewelry
• DVD
• CD
• Computer
• Tech Accessories
• Movie Tickets
• General Consumer Goods
• Books
• Travel (Included Air Tickets)

10. How would you categorize yourself in terms of online buyer behavior

• Impulsive, you barely think about cost, quality, durability, or any other characteristic
• Analyzing every detail of the product and comparing with other sites.
• Following your friends, family, colleges, or other people that in some way influence you

11. Do you have a profile and social networks like Facebook or Twitter?

• Yes, I have a Facebook and a Twitter profile
• I only have a Facebook profile
• I only have a Twitter profile
• No, I don´t have a profile on any social network

12. Do you think the advertisements on Facebook or Twitter influence you when it comes to purchasing any product online?

• Yes, always
• Yes, but just sometimes
• No, never

13. Have you ever bought any product online basedon your friends´ “likes” on Facebook or your followers on Twitter?

• Yes
• No

14. What do you think is the most important?

• Analyze the products, read reviews, and compare with others to discover the best product on your own
• Trust in your friends’ experiences and their opinion about the product

15. Which of these forces produce more influence on your online shopping?

• WOM (Word-of-mouth)
• Advertisements on social networks
• Advertisements you see when you are surfing the net