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                                                                               Social media landscape  
                                                                                       in India 
                                                                                                            
                                                                                                            
                                                                                                            
                                                                                                            
                                                                                                            
                                                                                                            
                                                                                                            
                                                                                                            
                                                                                                            
                                                                                                  September 2009 
                                                                                                  By Preeti Anand 
                                                                                                            
                                                                                                            
                                                                                                            
                                                                                                            
                                                                                                            
                                                                                                            

 
Preeti Anand, 2009                                                                                                                             1 | P a g e  
 
This report may not be reproduced without the author’s permission 

Executive Summary 
Social media usage is rapidly growing in India and holds immense opportunity for Indian businesses to cost-effectively reach out to a large number of
consumers. However, in this increasingly consumer-centric world, Indian businesses will need to spend a considerable amount of effort in studying the
consumer behaviour to effectively reach out to them through this medium with the right benefits and value.

While a number of social media studies have been conducted in Western countries, this field has been relatively unexplored in India. An oft sited issue
surrounding the adoption of social media by firms in India is their low awareness on how this medium can be leveraged for business. This report consolidates
the findings from 647 responses of an online questionnaire on social media, and seeks to provide a better understanding of social media usage patterns of Indian
consumers.

Key findings in the report are:

     •     Social media users in India are young, predominantly male and have well paid occupations
     •     The top five social media sites in India provide a near captive audience, a majority of whom are long-time and returning users
     •     Motivation for social media usage in India is driven the most by the desire to build relationships
     •     Indian consumers are turning to social media for guidance on buying decisions in a variety of categories
     •     Social media users in India consider peer and professional opinion as more credible sources for purchase guidance than either of them alone
     •     Indian consumers no longer wish to be passive entities but want to actively participate in collaborative marketing on social media
     •     Indian users’ perception of value from social media sites is affected by frequently updated, quality content
     •     Like with the Internet, privacy issues are of the biggest concern for the users of social media

This report provides some interesting insights into social media usage and consumer behaviour, some of which challenges conventional understanding of social
media marketing. This report can hence help businesses design more effective strategies, which are adapted to the Indian context, to tap into the target
consumer base.

 

Preeti Anand, 2009                                                                                                                                                     2 | P a g e  
 
This report may not be reproduced without the author’s permission 
                                                                            

 

 

 

 

 

 

 




                                                                                                                                                               




Preeti Anand, 2009                                                                                                                                 3 | P a g e  
 
This report may not be r
                                                                                                                                       reproduced witho
                                                                                                                                                      out the author’s p
                                                                                                                                                                       permission 

Soci
   ial med
         dia user
                rs in India 
Social media users in India are pre
       m            n             edominantly male, are between the age gr
                                              m                          roup of 21 and 40 years and have well pa occupation being
                                                                                      d            d            aid        ns,
primari employed with the priv
      ily                    vate sector. Li
                                           ifestyle brands, especially t
                                                                       those for the youth, have a real opportu
                                                                                                              unity to use f
                                                                                                                           focussed
strategi and tactics through socia media to tap into this lucr
       ies                       al           p              rative market s
                                                                           segment.




                                                                        

                                                                        




                                                                                      INCOME
                                                                        

                                                                        
                                                                       GEN
                                                                         NDER & AGE



                                                                                           

                                                                                           

                                                                                           

                                                                                               PROFESSION
                                                                                           

                                                                                           

                                                                                           




Preeti An
        nand, 2009                                                                                                                                                             4 | P a g e  
 
This report may not be r
                                                                                                         reproduced witho
                                                                                                                        out the author’s p
                                                                                                                                         permission 

Soci
   ial med
         dia usag
                ge patte
                       erns, Sit
                               tes visited 
                                                                                                                       T social med sites
                                                                                                                       Top        dia
                                                                                                                       in India are Orkut,
                                                                                                                        n
                                                                                                                       L
                                                                                                                       LinkedIn                          and
                                                                                                                       Facebook.                     Social
                                                                                                                       N
                                                                                                                       Networking si
                                                                                                                                   ites are
                                                                                                                       th top prefere
                                                                                                                        he          ences in
                                                                                                                       al age groups, though
                                                                                                                        ll          ,
                                                                                                                       th users in th 31-40
                                                                                                                        he          he
                                                                                                                       an 41-50 age group
                                                                                                                        nd        e
                                                                                                                       pr
                                                                                                                        refer            profe
                                                                                                                                            fessional
                                                                                             networking sites (LinkedIn) compared to the
                                                                                                      g
                                                                                             users in th
                                                                                                       he     21-30 ag group who prefer
                                                                                                                     ge        o
                                                                                                       etworking site (Orkut, Facebook).
                                                                                             personal ne            es

                                                                                             The top 5 s
                                                                                                       sites have a h
                                                                                                                    huge share of t total
                                                                                                                                  the
                                       POPULAR SO
                                                OCIAL MEDIA SITES IN INDIA 
                                                          A                                  social medi users. Poor proliferation of other
                                                                                                       ia
                                                                                             sites indica that there is little fragmentation
                                                                                                        ates
in the Indian social m
       I             media market The top five sites provid a nearly cap
                                t.           e            de           ptive audience making it ea
                                                                                    e            asier to conce
                                                                                                              entrate ad spe
                                                                                                                           ends and
reach th critical 3/5 impressions m
       he                         mark quickly.



Preeti An
        nand, 2009                                                                                                                               5 | P a g e  
 
This report may not be r
                                                                                                                                       reproduced witho
                                                                                                                                                      out the author’s p
                                                                                                                                                                       permission 

Soci
   ial med
         dia usag
                ge patte
                       erns, Ex
                              xperience
                                      e & Frequ        usage  
                                              uency of u
A large majority of s
      e             social media u
                                 users have bee using socia media at lea for a year. The 21-30 ag group has the most expe
                                              en          al           ast         .            ge                      erienced
                                                                       socia media user A significa number o social med beginners are in the ol
                                                                           al         rs.         ant      of         dia                     lder age
                                                                       categ                                     have now adopted the Inter
                                                                           gory of 41-50 years. Older age groups h
                                                                                       0                                                  rnet and socia media
                                                                                                                                                       al
                                                                       rathe than growin up in the In
                                                                           er          ng           nternet with social media all around them. ◄

                                                                       The frequency of v
                                                                                        visits to social media sites is an indicator of the active u
                                                                                                       l                                           usage of socia media
                                                                                                                                                                al
                                                                                                                    ority of users visiting socia media sites at least
                                                                                          in India, with a large majo
                                                                                                       h                                        al
                                                                                          once a day.►
                                                                                                     ►




                  EXPERIEN
                         NCE WITH SO
                                   OCIAL MEDIA                                                               FREQUE
                                                                                                                  ENCY OF USA
                                                                                                                            AGE OF SOCIAL MEDIA TO
                                                                                                                                                 OOLS 
Long ti (have been using for mo than a year and returnin users (visit about once in two days) in an un-fragme
      ime        n            ore         r)           ng           t             n            n            ented market, is ideal
for soci media mark
       ial        keters.
Preeti An
        nand, 2009                                                                                                                                                             6 | P a g e  
 
This report may not be r
                                                                                                          reproduced witho
                                                                                                                         out the author’s p
                                                                                                                                          permission 

Soci
   ial med
         dia tech
                hnograp
                      phics 
‘Techno
      ographics’ ref
                   fers to the lev of audien participation in social c
                                 vels      nce                       computing rat
                                                                                 ther than spec
                                                                                              cific technolog adoption. C
                                                                                                            gy          Creators
create the user gene
       t           erated content Critics and Collectors h
                                t,          d            help dissemina it and Sp
                                                                      ate                     consumers of the content. Joiners
                                                                                pectators are c          f
                                                                           specifically participate in social netwo
                                                                                                     n            orking sites a play
                                                                                                                               and
                                                                           all the other four roles in t context.
                                                                                                       that

                                                                           Most users are present i the “Spect
                                                                                                  in         tators” and “J
                                                                                                                          Joiners”
                                                                           category. T
                                                                                     The significa
                                                                                                 ant number of “Creator
                                                                                                                      rs” and
                                                                                      uggest many active users in India. Th large
                                                                           “Critics” su                                   he
                                                                           number of “Joiners” in
                                                                                                ndicates the popularity of social
                                                                                                                         f
                                                                                                               media usage.
                                                                           networking over other for of social m
                                                                                                   rms

                                                                           Before brand and online publishers att
                                                                                      ds                        tempt to deplo social
                                                                                                                             oy
                                                                           technologies they must understand th target aud
                                                                                      s,                      heir       dience -
                                                                           specifically its social “technographic” make-up - a only
                                                                                                                             and
                                                                           then create a social media strategy.
                                                                                                    a

                                                                            


                          SOCIA MEDIA TECHNOGRAPHIC PROFILE
                              AL
                                                                        

 

 


Preeti An
        nand, 2009                                                                                                                                7 | P a g e  
 
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                                                                                                           reproduced witho
                                                                                                                          out the author’s p
                                                                                                                                           permission 

Purpose of
         f social media usage
People turn to social media for ful
                                  lfilling variou motives or n
                                                us           needs. Indian consumer’s m
                                                                                      motivation to u social med is driven t most
                                                                                                    use        dia         the
by the desire to build relationship although many users see fulfillment of a multitud of other ne
                                  ps,        m            ek                        de          eeds like netw
                                                                                                             working, learni
                                                                                                                           ing, and
entertai
       inment etc. Cl
                    learly social m
                                  media is succes
                                                ssful at satisfy an individual social and psychological needs.
                                                               y             l’s                      l

                                                                                      rity of the ty
                                                                            The popular            ype of social media sites (social
                                                                                                               l
                                                                            networking, blogs etc.) is closely lin
                                                                                                                 nked to the relative
                                                                            importance o the user ne
                                                                                       of          eeds. So for instance, the n
                                                                                                                              need for
                                                                            relationships is identified as a user need and this is r
                                                                                        s                            d,            reflected
                                                                            in the popul
                                                                                       larity of socia networking sites. These results
                                                                                                     al         g            e
                                                                            indicate tha the user m
                                                                                       at         motivation ca be an im
                                                                                                              an       mportant
                                                                            indicator of w
                                                                                         which social m
                                                                                                      media sites are adopted by th user. 
                                                                                                                    e             he

                                                                            Knowing the motives and needs of the target audie
                                                                                      e           d            e            ence can
                                                                            be an imp
                                                                                    portant facto in design
                                                                                                or        ning the ma
                                                                                                                    arketing
                                                                            communicati
                                                                                      ion as a pu strategy s
                                                                                                ull        since its suc
                                                                                                                       ccess is
                                                                            dependent o the volun
                                                                                      on        ntary particip
                                                                                                             pation of the target
                                                                                                                         e
                                                                            audiences. H
                                                                                       However marketers should tr
                                                                                                                 read with caut
                                                                                                                              tion; the
                                                                            user desire to build relatio
                                                                                                       onships indica that socia media
                                                                                                                    ates       al
                                                                            is a place f friends an not for corporations to intrude
                                                                                       for        nd
       PUR
         RPOSE FOR W
                   WHICH SOCIA MEDIA SITES ARE VIS
                             AL                  SITED BY
                                                                            upon.
                                                  USERS IN INDIA
                                                      S


Preeti An
        nand, 2009                                                                                                                                 8 | P a g e  
 
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Preeti Anand, 2009                                                                                                                                 9 | P a g e  
 
This report may not be r
                                                                                                          reproduced witho
                                                                                                                         out the author’s p
                                                                                                                                          permission 

Guid
   dance o
         on buyi
               ing decisions
Social media is used for guidance on purchase decisions in a variety of pr
       m           d                                                     roduct/service categories. In
                                                                                                     nformation on certain categ
                                                                                                                 n             gories of
      ts/services lik Travel, Consumer electr
product             ke                      ronics, Media i.e. Books, M
                                                        a             Movies and M
                                                                                 Music are mo likely to b sought tha other
                                                                                            ore         be         an
product
      t/service categ
                    gories like Fin
                                  nancial or Heal
                                                lthcare.

                                                                            The top 5 categories – travel des
                                                                                                            stinations, electronic
                                                                            gadgets, res
                                                                                       staurants, boo and movi
                                                                                                    oks      ies, and auto
                                                                                                                         omobiles
                                                                            fall into the search cate
                                                                                        e           egory i.e. pro
                                                                                                                 oduct or servi with
                                                                                                                              ice
                                                                            features   an
                                                                                        nd     character
                                                                                                       ristics        easily
                                                                                                                           y    evaluated             before
                                                                            purchase, o experience category i.e. product or service
                                                                                      or
                                                                            where prod
                                                                                     duct character
                                                                                                  ristics are dif
                                                                                                                fficult to obs
                                                                                                                             serve in
                                                                            advance, bu these chara
                                                                                      ut          acteristics can be ascertaine upon
                                                                                                                              ed
                                                                            consumption Hence th
                                                                                      n.       hese product or servic
                                                                                                          ts        ces are
                                                                            potentially m
                                                                                        more likely to be looked u on social m
                                                                                                     o           up          media as
                                                                            compared to credence pr
                                                                                      o           roducts i.e. wh
                                                                                                                here it is diffi
                                                                                                                              ficult for
                                                                            consumers to judge the quality or rel
                                                                                                                levant attribut of a
                                                                                                                              tes
                                                                            product, like in financial s
                                                                                        e              services or healthcare.

                                                                            Businesses i these popul categories can be early a
                                                                                       in          lar                       adopters
                                                                            of social me marketing
                                                                                       edia      g.

      PRO
        ODUCT/SERVI
                  ICES REFFERRED FOR PUR
                                       RCHASE GUID
                                                 DANCE ON
                                                     SOCI
                                                        IAL MEDIA

Preeti An
        nand, 2009                                                                                                                                 10 | P a g e  
 
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                                                                                                                    reproduced witho
                                                                                                                                   out the author’s p
                                                                                                                                                    permission 

Sou
  urce refe
          erred fo
                 or purc
                       chase guidance on so
                                          ocial me
                                                 edia 
                                                                       Majority of Social media users in India look for a c
                                                                                                                          combination o user
                                                                                                                                      of
                                                                       and company generated in
                                                                                 y            nformation and not just use information alone.
                                                                                                           d            er
                                                                       Consumers a evaluating the brand promise com
                                                                                 are        g                     mmunicated th
                                                                                                                              hrough
                                                                       company pro
                                                                                 ovides sources against the u
                                                                                              s             unbiased opin
                                                                                                                        nions of other users,
                                                                                                                                     r
                                                                       to reduce the uncertainty in decision-ma
                                                                                   e              n           aking.

                                                                       Peer opinion is considere a more cr
                                                                                  n            ed        redible sourc than professional
                                                                                                                     ce
                                                                       opinion on social media. Company p
                                                                                                        provided infor
                                                                                                                     rmation is the least
                                                                                                                                  e
                                                                       referred sour for guidanc on purchase ◄
                                                                                   rce         ce          e.




       SO
        OURCE REFFERRED FOR PU
                             URCHASE GUI
                                       IDANCE

   Indians repose les faith in th corporation on social media. A
                    ss          he          ns
   major
       rity of the users are no willing to share their personal
                              ot         o           r
   inform
        mation with businesses even in return for better service ►
                                  n             r              es.

   Onlin marketing communicatio campaign without som form of
       ne                     ons      n,          me
   consu
       umer involvem
                   ment, is likel to be ineff
                                ly          fective in eng
                                                         gaging the
   consu
       umers. The su
                   uccess of onlin marketing campaigns wil be based
                                 ne          c           ll
   on its integration w end-user p
        s             with       provided feedb
                                              back.
                                                                                             USER WILLINGNES TO SHARE PERSONAL
                                                                                                           SS       E
                                                                                   INFORMATIO FOR BETT
                                                                                   I        ON       TER SERVICE FROM COMPA
                                                                                                                          ANIES
Preeti An
        nand, 2009                                                                                                                                          11 | P a g e  
 
This report may not be r
                                                                                                                                  reproduced witho
                                                                                                                                                 out the author’s p
                                                                                                                                                                  permission 

Valu
   ue of Co
          onsume
               er‐to‐Consumer (C2C
                                 C) exchanges o
                                              on socia
                                                     al medi
                                                           ia 
                                                                                         Informatio about a com
                                                                                                  on          mpany or its p
                                                                                                                           products/servi
                                                                                                                                        ices has a bear
                                                                                                                                                      ring on
                                                                                         consumer behavior wh
                                                                                                            hich ranges fr
                                                                                                                         rom generatin interest abo the
                                                                                                                                     ng           out
                                                                                         company    and/or      its       products/services       to   c
                                                                                                                                                       customer           adv
                                                                                                                                                                            vocacy
                                                                                      
                                                                                         manifested through rec
                                                                                                              commending the brand to others. Whe this
                                                                                                                                    o           en
                                                                                      
                                                                                         informatio is mapped with user g
                                                                                                  on        d           generated or company gen
                                                                                                                                               nerated
                                                                                      
                                                                                         informatio it is seen that C2C (co
                                                                                                  on,                                 onsumer) exchanges
                                                                                                                          onsumer-to-co
                                                                                      
                                                                                         represent a powerful source of additio source of value creatio
                                                                                                                              onal      f             on.
                                                                                      
                                                                                                hanges are driv
                                                                                         C2C exch             ving a new tren of social sh
                                                                                                                            nd           hopping where
                                                                                                                                                     e
                                                                                                            
                                                                                                               indiv
                                                                                                                   viduals recom
                                                                                                                               mmend to other the produc and
                                                                                                                                            rs         cts
                                                                                                            
                                                                                                               serv
                                                                                                                  vices that they brought or us The peer-
                                                                                                                                              sed.      -
                                                                                  
                                             PRODUCT/SERVICE
     ON
                ACCESSING INFORMATION OF A




                                                                                                               influ
                                                                                                                   uence factor an visible feed
                                                                                                                                 nd           dback channel in
                                                                                                                                                          ls
                                                                                                               the f
                                                                                                                   form of comm
                                                                                                                              ments, online p
                                                                                                                                            polls etc. are
     CONSUMER




                                                                                                                  ouraging peop to be more participative i the
                                                                                                               enco           ple                        in
                                                                                                               social Web.
                                                               ON SOCIAL MEDIA




                                                                                                               Soci media mark
                                                                                                                  ial        keting should imbibe a mix
                                             OR
     ON




                                                                                                               cons
                                                                                                                  stituting “push (advertising and websit
                                                                                                                                h”           g          tes)
                                             COMPANY




                                                                                                               and “pull” (inform
                                                                                                                                mation from             neutral, infor
                                                                                                                                                                     rmal
     IMPACT




                                                                                                               com
                                                                                                                 mmunication) m
                                                                                                                              marketing tactics to engage the
                                                                                                                                                        e
                                                                                                               targe consumer b
                                                                                                                   et         base.
Preeti An
        nand, 2009                                                                                                                                                             12 | P a g e  
 
This report may not be r
                                                                                                         reproduced witho
                                                                                                                        out the author’s p
                                                                                                                                         permission 

Soci
   ial med
         dia and collabo
                       orative marke
                                   eting 
Social media can pla an importan role in colla
       m           ay          nt            aborative mark
                                                          keting. Under the rubric of collaborative marketing, co
                                                                      r             f                           onsumers beco
                                                                                                                            ome co-
produce i.e. empowered partici
      ers                    ipants in the process of both creation as well as co
                                                                                onsumption, r
                                                                                            resulting in m
                                                                                                         more active, e
                                                                                                                      engaged
                                                                        consumers.

                                                                                   umers no long wish to be passive enti
                                                                        Indian consu           ger        e            ities but
                                                                        want to ac
                                                                                 ctively partic         managing their own
                                                                                              cipate in m
                                                                        consumption Consumers i India would like to most interact
                                                                                  n.          in          d
                                                                        with a compa on social media for ne product ide The
                                                                                   any                    ew          eas.
                                                                        other top cat
                                                                                    tegories are f
                                                                                                 feedback on p
                                                                                                             products/servic and
                                                                                                                           ces,
                                                                        creating and maintaining relationships.

                                                                                   rative marketi effort wit these co-pr
                                                                        The collabor            ing        th          roducers
                                                                        can have a direct impac on a firm’ productivit gains
                                                                                              ct         ’s          ty
                                                                        through bette customer en
                                                                                    er          ngagement, increased custom self
                                                                                                                          mer
                                                                        service     and
                                                                                      d       hence   re
                                                                                                       educed        costs
                                                                                                                         s,     better          cu
                                                                                                                                                 ustomer
                                                                        relationships, improved communicati
                                                                                                          ions and in
                                                                                                                    ncreased

           MARKETING E
           M         EFFORTS FOR WHICH CON
                               R         NSUMERS WO
                                                  OULD LIKE             transactions.
                                     TO
                                     T BE REACH
                                              HED ON SOCI
                                                        IAL MEDIA
                                               

Preeti An
        nand, 2009                                                                                                                                13 | P a g e  
 
This report may not be r
                                                                                                              reproduced witho
                                                                                                                             out the author’s p
                                                                                                                                              permission 

Perc
   ception
         n of valu
                 ue and service
                              e expec
                                    ctations
                                           s  
Indian consumers’ p
                  perception of v
                                value from so
                                            ocial media sites is
affected by frequentl updated, qu
       d            ly          uality content. Consumers a no
                                              .           are
longer a passive audi
                    ience but seek participation in active, eng
                                 k             n              gaging
convers            provides them with genuin value. One-way
      sations that p           m           ne
marketi approache as seen in tr
      ing       es            raditional mas media mark
                                           ss         keting,
telemar
      rketing, promo
                   otional emails etc., may pro to be ineff
                                s             ove         fective
to targe the new age consumers. ►
       et




                                                                                  ENGAGEM
                                                                                        MENT DRIVER ON SOCIA MEDIA
                                                                                                  RS       AL

                                                                       Though most social media sites a free and open for partic
                                                                            h                         are                      cipation,
                                                                       consum
                                                                            mers have bas service ex
                                                                                        sic        xpectations lik protection of user
                                                                                                                 ke
                                                                       informa
                                                                             ation, site ava
                                                                                           ailability, and usability. Priv
                                                                                                                         vacy issues ar a big
                                                                                                                                      re
                                                                       concern and consume in India de
                                                                             n           ers                      rong sense of mistrust
                                                                                                     emonstrate str
                                                                       when c
                                                                            companies try to engage with them th
                                                                                        y                      hrough social media.
                                                                       Compan
                                                                            nies will hen need to d
                                                                                        nce                    lear values based on
                                                                                                  demonstrate cl
               MAIN CONC
                       CERNS IN INT
                                  TERACTING THROUGH
                                            T                          openness, flexibility and an external customer fo
                                                                                                                       ocus.◄
                                             SOCIAL M
                                                    MEDIA
Preeti An
        nand, 2009                                                                                                                                    14 | P a g e  
 
This report may not be reproduced without the author’s permission 

About the author 
Preeti Anand is a recent grad from the MBA batch of 2008-09 from Lancaster University Management School in the UK (ranked 27th in
the global FT 2009 MBA ranking). This report is part of the work carried out for her dissertation on the ‘Impact of Social media on
Consumer behavior’.

Preeti has prior technical and managerial work experience of nearly 6 years in the IT industry in India, having worked for companies like
Hewlett-Packard, EMC and Motorola. Currently, she works as a consultant with Oracle Financial Services to assist them on their social
media strategy and has also authored several whitepapers for them on new age technologies, such as Cloud computing, Building brand
equity on social media, Virtualization etc.




Email: anand.preeti@gmail.com

Preeti Anand, 2009                                                                                                                                  15 | P a g e  
 

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India Social Media Study 2009

  • 1. This report may not be reproduced without the author’s permission              Social media landscape   in India                    September 2009  By Preeti Anand                Preeti Anand, 2009                                                                                          1 | P a g e    
  • 2. This report may not be reproduced without the author’s permission  Executive Summary  Social media usage is rapidly growing in India and holds immense opportunity for Indian businesses to cost-effectively reach out to a large number of consumers. However, in this increasingly consumer-centric world, Indian businesses will need to spend a considerable amount of effort in studying the consumer behaviour to effectively reach out to them through this medium with the right benefits and value. While a number of social media studies have been conducted in Western countries, this field has been relatively unexplored in India. An oft sited issue surrounding the adoption of social media by firms in India is their low awareness on how this medium can be leveraged for business. This report consolidates the findings from 647 responses of an online questionnaire on social media, and seeks to provide a better understanding of social media usage patterns of Indian consumers. Key findings in the report are: • Social media users in India are young, predominantly male and have well paid occupations • The top five social media sites in India provide a near captive audience, a majority of whom are long-time and returning users • Motivation for social media usage in India is driven the most by the desire to build relationships • Indian consumers are turning to social media for guidance on buying decisions in a variety of categories • Social media users in India consider peer and professional opinion as more credible sources for purchase guidance than either of them alone • Indian consumers no longer wish to be passive entities but want to actively participate in collaborative marketing on social media • Indian users’ perception of value from social media sites is affected by frequently updated, quality content • Like with the Internet, privacy issues are of the biggest concern for the users of social media This report provides some interesting insights into social media usage and consumer behaviour, some of which challenges conventional understanding of social media marketing. This report can hence help businesses design more effective strategies, which are adapted to the Indian context, to tap into the target consumer base.   Preeti Anand, 2009                                                                                          2 | P a g e    
  • 3. This report may not be reproduced without the author’s permission                    Preeti Anand, 2009                                                                                          3 | P a g e    
  • 4. This report may not be r reproduced witho out the author’s p permission  Soci ial med dia user rs in India  Social media users in India are pre m n edominantly male, are between the age gr m roup of 21 and 40 years and have well pa occupation being d d aid ns, primari employed with the priv ily vate sector. Li ifestyle brands, especially t those for the youth, have a real opportu unity to use f focussed strategi and tactics through socia media to tap into this lucr ies al p rative market s segment.     INCOME     GEN NDER & AGE         PROFESSION       Preeti An nand, 2009                                                                                   4 | P a g e    
  • 5. This report may not be r reproduced witho out the author’s p permission  Soci ial med dia usag ge patte erns, Sit tes visited  T social med sites Top dia in India are Orkut, n L LinkedIn and Facebook. Social N Networking si ites are th top prefere he ences in al age groups, though ll , th users in th 31-40 he he an 41-50 age group nd e pr refer profe fessional networking sites (LinkedIn) compared to the g users in th he 21-30 ag group who prefer ge o etworking site (Orkut, Facebook). personal ne es The top 5 s sites have a h huge share of t total the POPULAR SO OCIAL MEDIA SITES IN INDIA  A social medi users. Poor proliferation of other ia sites indica that there is little fragmentation ates in the Indian social m I media market The top five sites provid a nearly cap t. e de ptive audience making it ea e asier to conce entrate ad spe ends and reach th critical 3/5 impressions m he mark quickly. Preeti An nand, 2009                                                                                   5 | P a g e    
  • 6. This report may not be r reproduced witho out the author’s p permission  Soci ial med dia usag ge patte erns, Ex xperience e & Frequ usage   uency of u A large majority of s e social media u users have bee using socia media at lea for a year. The 21-30 ag group has the most expe en al ast . ge erienced socia media user A significa number o social med beginners are in the ol al rs. ant of dia lder age categ have now adopted the Inter gory of 41-50 years. Older age groups h 0 rnet and socia media al rathe than growin up in the In er ng nternet with social media all around them. ◄ The frequency of v visits to social media sites is an indicator of the active u l usage of socia media al ority of users visiting socia media sites at least in India, with a large majo h al once a day.► ► EXPERIEN NCE WITH SO OCIAL MEDIA  FREQUE ENCY OF USA AGE OF SOCIAL MEDIA TO OOLS  Long ti (have been using for mo than a year and returnin users (visit about once in two days) in an un-fragme ime n ore r) ng t n n ented market, is ideal for soci media mark ial keters. Preeti An nand, 2009                                                                                   6 | P a g e    
  • 7. This report may not be r reproduced witho out the author’s p permission  Soci ial med dia tech hnograp phics  ‘Techno ographics’ ref fers to the lev of audien participation in social c vels nce computing rat ther than spec cific technolog adoption. C gy Creators create the user gene t erated content Critics and Collectors h t, d help dissemina it and Sp ate consumers of the content. Joiners pectators are c f specifically participate in social netwo n orking sites a play and all the other four roles in t context. that Most users are present i the “Spect in tators” and “J Joiners” category. T The significa ant number of “Creator rs” and uggest many active users in India. Th large “Critics” su he number of “Joiners” in ndicates the popularity of social f media usage. networking over other for of social m rms Before brand and online publishers att ds tempt to deplo social oy technologies they must understand th target aud s, heir dience - specifically its social “technographic” make-up - a only and then create a social media strategy. a   SOCIA MEDIA TECHNOGRAPHIC PROFILE AL       Preeti An nand, 2009                                                                                   7 | P a g e    
  • 8. This report may not be r reproduced witho out the author’s p permission  Purpose of f social media usage People turn to social media for ful lfilling variou motives or n us needs. Indian consumer’s m motivation to u social med is driven t most use dia the by the desire to build relationship although many users see fulfillment of a multitud of other ne ps, m ek de eeds like netw working, learni ing, and entertai inment etc. Cl learly social m media is succes ssful at satisfy an individual social and psychological needs. y l’s l rity of the ty The popular ype of social media sites (social l networking, blogs etc.) is closely lin nked to the relative importance o the user ne of eeds. So for instance, the n need for relationships is identified as a user need and this is r s d, reflected in the popul larity of socia networking sites. These results al g e indicate tha the user m at motivation ca be an im an mportant indicator of w which social m media sites are adopted by th user.  e he Knowing the motives and needs of the target audie e d e ence can be an imp portant facto in design or ning the ma arketing communicati ion as a pu strategy s ull since its suc ccess is dependent o the volun on ntary particip pation of the target e audiences. H However marketers should tr read with caut tion; the user desire to build relatio onships indica that socia media ates al is a place f friends an not for corporations to intrude for nd PUR RPOSE FOR W WHICH SOCIA MEDIA SITES ARE VIS AL SITED BY upon. USERS IN INDIA S Preeti An nand, 2009                                                                                   8 | P a g e    
  • 9. This report may not be reproduced without the author’s permission                                        Preeti Anand, 2009                                                                                          9 | P a g e    
  • 10. This report may not be r reproduced witho out the author’s p permission  Guid dance o on buyi ing decisions Social media is used for guidance on purchase decisions in a variety of pr m d roduct/service categories. In nformation on certain categ n gories of ts/services lik Travel, Consumer electr product ke ronics, Media i.e. Books, M a Movies and M Music are mo likely to b sought tha other ore be an product t/service categ gories like Fin nancial or Heal lthcare. The top 5 categories – travel des stinations, electronic gadgets, res staurants, boo and movi oks ies, and auto omobiles fall into the search cate e egory i.e. pro oduct or servi with ice features an nd character ristics easily y evaluated before purchase, o experience category i.e. product or service or where prod duct character ristics are dif fficult to obs serve in advance, bu these chara ut acteristics can be ascertaine upon ed consumption Hence th n. hese product or servic ts ces are potentially m more likely to be looked u on social m o up media as compared to credence pr o roducts i.e. wh here it is diffi ficult for consumers to judge the quality or rel levant attribut of a tes product, like in financial s e services or healthcare. Businesses i these popul categories can be early a in lar adopters of social me marketing edia g. PRO ODUCT/SERVI ICES REFFERRED FOR PUR RCHASE GUID DANCE ON SOCI IAL MEDIA Preeti An nand, 2009                                                                                   10 | P a g e    
  • 11. This report may not be r reproduced witho out the author’s p permission  Sou urce refe erred fo or purc chase guidance on so ocial me edia  Majority of Social media users in India look for a c combination o user of and company generated in y nformation and not just use information alone. d er Consumers a evaluating the brand promise com are g mmunicated th hrough company pro ovides sources against the u s unbiased opin nions of other users, r to reduce the uncertainty in decision-ma e n aking. Peer opinion is considere a more cr n ed redible sourc than professional ce opinion on social media. Company p provided infor rmation is the least e referred sour for guidanc on purchase ◄ rce ce e. SO OURCE REFFERRED FOR PU URCHASE GUI IDANCE Indians repose les faith in th corporation on social media. A ss he ns major rity of the users are no willing to share their personal ot o r inform mation with businesses even in return for better service ► n r es. Onlin marketing communicatio campaign without som form of ne ons n, me consu umer involvem ment, is likel to be ineff ly fective in eng gaging the consu umers. The su uccess of onlin marketing campaigns wil be based ne c ll on its integration w end-user p s with provided feedb back. USER WILLINGNES TO SHARE PERSONAL SS E INFORMATIO FOR BETT I ON TER SERVICE FROM COMPA ANIES Preeti An nand, 2009                                                                                   11 | P a g e    
  • 12. This report may not be r reproduced witho out the author’s p permission  Valu ue of Co onsume er‐to‐Consumer (C2C C) exchanges o on socia al medi ia  Informatio about a com on mpany or its p products/servi ices has a bear ring on consumer behavior wh hich ranges fr rom generatin interest abo the ng out company and/or its products/services to c customer adv vocacy   manifested through rec commending the brand to others. Whe this o en   informatio is mapped with user g on d generated or company gen nerated   informatio it is seen that C2C (co on, onsumer) exchanges onsumer-to-co   represent a powerful source of additio source of value creatio onal f on.   hanges are driv C2C exch ving a new tren of social sh nd hopping where e   indiv viduals recom mmend to other the produc and rs cts   serv vices that they brought or us The peer- sed. -   PRODUCT/SERVICE ON ACCESSING INFORMATION OF A   influ uence factor an visible feed nd dback channel in ls the f form of comm ments, online p polls etc. are CONSUMER ouraging peop to be more participative i the enco ple in social Web. ON SOCIAL MEDIA Soci media mark ial keting should imbibe a mix OR ON cons stituting “push (advertising and websit h” g tes) COMPANY and “pull” (inform mation from neutral, infor rmal IMPACT com mmunication) m marketing tactics to engage the e targe consumer b et base. Preeti An nand, 2009                                                                                   12 | P a g e    
  • 13. This report may not be r reproduced witho out the author’s p permission  Soci ial med dia and collabo orative marke eting  Social media can pla an importan role in colla m ay nt aborative mark keting. Under the rubric of collaborative marketing, co r f onsumers beco ome co- produce i.e. empowered partici ers ipants in the process of both creation as well as co onsumption, r resulting in m more active, e engaged consumers. umers no long wish to be passive enti Indian consu ger e ities but want to ac ctively partic managing their own cipate in m consumption Consumers i India would like to most interact n. in d with a compa on social media for ne product ide The any ew eas. other top cat tegories are f feedback on p products/servic and ces, creating and maintaining relationships. rative marketi effort wit these co-pr The collabor ing th roducers can have a direct impac on a firm’ productivit gains ct ’s ty through bette customer en er ngagement, increased custom self mer service and d hence re educed costs s, better cu ustomer relationships, improved communicati ions and in ncreased MARKETING E M EFFORTS FOR WHICH CON R NSUMERS WO OULD LIKE transactions. TO T BE REACH HED ON SOCI IAL MEDIA     Preeti An nand, 2009                                                                                   13 | P a g e    
  • 14. This report may not be r reproduced witho out the author’s p permission  Perc ception n of valu ue and service e expec ctations s   Indian consumers’ p perception of v value from so ocial media sites is affected by frequentl updated, qu d ly uality content. Consumers a no . are longer a passive audi ience but seek participation in active, eng k n gaging convers provides them with genuin value. One-way sations that p m ne marketi approache as seen in tr ing es raditional mas media mark ss keting, telemar rketing, promo otional emails etc., may pro to be ineff s ove fective to targe the new age consumers. ► et ENGAGEM MENT DRIVER ON SOCIA MEDIA RS AL Though most social media sites a free and open for partic h are cipation, consum mers have bas service ex sic xpectations lik protection of user ke informa ation, site ava ailability, and usability. Priv vacy issues ar a big re concern and consume in India de n ers rong sense of mistrust emonstrate str when c companies try to engage with them th y hrough social media. Compan nies will hen need to d nce lear values based on demonstrate cl MAIN CONC CERNS IN INT TERACTING THROUGH T openness, flexibility and an external customer fo ocus.◄ SOCIAL M MEDIA Preeti An nand, 2009                                                                                   14 | P a g e    
  • 15. This report may not be reproduced without the author’s permission  About the author  Preeti Anand is a recent grad from the MBA batch of 2008-09 from Lancaster University Management School in the UK (ranked 27th in the global FT 2009 MBA ranking). This report is part of the work carried out for her dissertation on the ‘Impact of Social media on Consumer behavior’. Preeti has prior technical and managerial work experience of nearly 6 years in the IT industry in India, having worked for companies like Hewlett-Packard, EMC and Motorola. Currently, she works as a consultant with Oracle Financial Services to assist them on their social media strategy and has also authored several whitepapers for them on new age technologies, such as Cloud computing, Building brand equity on social media, Virtualization etc. Email: anand.preeti@gmail.com Preeti Anand, 2009                                                                                          15 | P a g e