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Effects of social media on consumers’ purchase decisions: evidence from Taobao

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  • Kee-Young Kwahk

    (Kookmin University)

  • Byoungsoo Kim

    (Yeungnam University)

Abstract

Given the rapid growth of social media, it is important to understand the effects of social media on consumers’ purchase decisions in the e-commerce environment. However, although some e-commerce sites have started to link themselves to social media to enhance user interactions, previous studies of social media and service management have shed little light on the effects of social media on consumers’ purchase decisions. This study proposes a theoretical research model that includes social media factors, social impact transfer factors, and e-commerce outcome factors. We posit social interaction ties and social media commitment as key elements of social media. An online questionnaire was conducted to test the research model and hypotheses based on survey data collected from Taobao, the largest e-commerce site in China. The analysis results indicate that social interaction ties have significant positive effects on social impact transfer factors and trust in online vendor, whereas they do not directly influence visit intention. Social media commitment plays a crucial role in increasing social impact transfer factors and e-commerce outcomes. The findings reveal the different effects of normative and informational social influences on consumer purchase decisions. Further implications are discussed.

Suggested Citation

  • Kee-Young Kwahk & Byoungsoo Kim, 2017. "Effects of social media on consumers’ purchase decisions: evidence from Taobao," Service Business, Springer;Pan-Pacific Business Association, vol. 11(4), pages 803-829, December.
  • Handle: RePEc:spr:svcbiz:v:11:y:2017:i:4:d:10.1007_s11628-016-0331-4
    DOI: 10.1007/s11628-016-0331-4
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    2. Sanz-Blas, Silvia & Buzova, Daniela & Pérez-Ruiz, Pilar, 2021. "Building relational worth in an online social community through virtual structural embeddedness and relational embeddedness," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
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    5. Hui Li & Narisa Zhao, 2019. "Better Earlier than Longer: First-Mover Advantage in Social Commerce Product Information Competition," Sustainability, MDPI, vol. 11(17), pages 1-17, August.
    6. Mohammed Anam Akhtar & Khurram Ajaz Khan & Hung Cuong Hoang, 2023. "Role of Social Networking Sites in Financial Product Choice: An Investigation Through the Theory of Planned Behavior," Business Perspectives and Research, , vol. 11(1), pages 44-62, January.
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