Impact of Social Media on Sales Activities of Small Businesses in Hyderabad

Abstract

Abstract: Social media can be a powerful tool to help businesses in any size to reach their sales targets. This study attempts to investigate the impact of social media on sales activities using a quantitative approach to obtain a profound view of this phenomenon. An online questionnaire was distributed to the listed small businesses in Hyderabad, Telangana State, India via their emails. Data were collected from small businesses through self-administered questionnaire. 197 participants were accomplished. Descriptive and inferential statistics are applied to the measured variables under study. Brand Awareness, Sales Transactions, Sales Revenue, Engagement Tool, Customer Relations and Product/Service Improvement are used as determinants of Sales Activities in this study. Confirmatory Factor Analysis, Discriminant Validity and Hypothesis testing are used in the practical analysis to examine the impact of social media on the determinants of sales activities. The results show that social media has a positive significant impact on the all involved variables (constructs) i.e., Brand Awareness, Sales Transactions, Sales Revenue, Engagement Tool, Customer Relations and Product/Service Improvement. Apparently, small businesses should focus on social media to incorporate sales performance into their marketing tactics.