The Role of Social Media in Shaping Consumer Behavior in Online Retail: A Systematic Review

The proliferation of social media has fundamentally reshaped the landscape of consumer behaviour, particularly within the realm of online retail. Platforms such as Instagram, Facebook, Twitter, and YouTube are now powerful channels for product discovery, peer reviews, and recommendation so much so that they have become embedded in consumers’ decision-making journeys (Aslam et al., 2021). These platforms foster highly interactive, community-driven environments where users co-create content, share feedback, and influence others in dynamic dialogues, moving far beyond passive consumption of brand messages.

Social media now anchors the entire consumer decision-making process from initial awareness and information gathering to purchase decisions and post-purchase reflection. In the absence of physical touch and sensory inspection especially in online retail consumers increasingly rely on peer opinions, user-generated content (UGC), influencer endorsements, and visually rich narratives to evaluate products (Aslam et al., 2021; Wikipedia on UGC). Meta-analyses have shown moderate to strong relationships between influencer characteristics (e.g., credibility, attractiveness, and informational value) and purchase intention or customer engagement (effect sizes 0.45–0.57).

Trust serves as a cornerstone in this digital context. On social commerce platforms, where direct interaction with retailers may be limited or anonymized, trust built via perceived social presence, peer reviews, and community consensus has a profound influence on purchase intention and repurchase behaviour (Wu et al., 2020; Frontiers in Psychology). Social learning theory further explains how individuals internalize observed behaviours from communities and influencers especially in cross-cultural applications as a driver of purchase behaviour (Chen et al., 2022).

The rise of influencer marketing has accelerated these trends. Influencers promote brands through authentic narratives, lifestyle content, and emotional resonance, lending credibility that often exceeds traditional advertising (Wikipedia on Influencer marketing; Frontiers Meta-analysis). According to research, influencer attraction, homophily, expertise, and entertainment value each independently contribute to increased customer engagement and intent to purchase (Sustainability meta‑analysis).

Social media advertising and personalized ads further generate psychological triggers such as impulse buying, particularly when relevance, novelty, and ease-of-payment are mediated by trust and perceived utility (Aslam et al., 2021). At the systemic level, a multi-platform social media strategy can meaningfully amplify brand exposure and sales by reinforcing repeated consumer impressions across channels (Wang et al., 2025).

In summary, social media’s transformation from a communication tool into a pivotal driver of brand engagement and purchase decisions is supported by robust empirical evidence. Creative content, authenticity, trust-building mechanisms, and cross-platform reinforcement collectively shape online consumer behaviour in today’s retail landscape.

Adam Rapp et al. (2013) In one of the earliest and most comprehensive studies on the multi-level effects of social media across the distribution channel, Rapp et al. (2013) develop and validate a framework to measure social media use at three critical levels: supplier, retailer, and customer. Their empirical research supports a contagion effect, where social media adoption and engagement propagate from suppliers to retailers and ultimately to consumers. The study emphasizes that social media usage is not an isolated phenomenon but rather a socially influenced behavior that can transmit through interconnected business relationships. Findings reveal that supplier usage significantly affects retailer usage, which in turn influences customer usage, thereby enhancing brand performance, retailer performance, and consumer–retailer loyalty. Notably, the strength of these contagion effects is moderated by brand reputation and service ambidexterity, meaning that well-known, agile brands see more pronounced benefits.

Godey et al. (2016) examine social media marketing efforts (SMMEs) and their impact on brand equity and consumer behavior in the luxury fashion sector, focusing on iconic brands like Dior, Gucci, and Louis Vuitton. Using a structural equation modeling (SEM) approach with survey data from 845 consumers across China, France, India, and Italy, the authors demonstrate that SMMEs significantly enhance brand equity by boosting brand awareness and brand image.

SMMEs are conceptualized holistically through five key elements:

• Entertainment.
• Interaction.
• Trendiness.
• Customization.
• Word-of-Mouth (WOM).

These factors collectively enhance brand preference, willingness to pay price premiums, and brand loyalty. The study further underscores that luxury consumers are highly responsive to social media content that reflects brand values and engages them emotionally, indicating that digital luxury branding can no longer be ignored.

Andrew T Stephen et al. (2016) Stephen and co-authors (2016) present a meta-review of academic literature on digital and social media marketing, organizing findings across five major thematic domains:

1. Consumer Digital Culture.

2. Responses to Digital Advertising.

3. Effects of Digital Environments on Consumer Behavior.

4. Mobile Environments.

5. Online Word-of-Mouth (WOM).

This work highlights how consumers today experience, influence, and are influenced by digital environments that permeate their everyday lives. The review also points out a disproportionate focus on WOM, suggesting that future studies should look into immersive, mobile, and cultural digital behaviors to build a more holistic understanding of social media's impact.

Duangruthai Voramontri et al. (2019) Focusing on complex, high-involvement purchases in Southeast Asia, Voramontri and Klieb (2019) explore the influence of social media across different stages of the consumer decision-making process, specifically through the Engel Blackwell Miniard (EBM) model. This includes:

·                    Information search.

·                    Alternative evaluation.

·                    Final purchase decision.

Results from their quantitative survey confirm that social media enhances satisfaction in each stage especially in the information search and alternative evaluation phases leading to greater purchase confidence. As users transition toward post-purchase behavior, social feedback loops (e.g., sharing reviews, testimonials) amplify brand trust and community engagement.

Bilal Zafar et al. (2020) Bilal Zafar et al. (2020) conduct an in-depth qualitative study in the Pakistani context, particularly among supermarket consumers in Lahore, to explore how social media compares with traditional media in shaping consumer behavior. Through a series of semi-structured interviews with diverse respondents, the study uncovers a clear preference for social media over conventional media (TV, print, radio) due to its interactive, personalized, and real-time nature. The study reveals that social media platforms serve as critical tools for information seeking, peer recommendations, and influencer engagement, all of which influence purchase decisions. Consumers increasingly trust peer-generated content, such as reviews and influencer posts, over traditional ads. The study emphasizes that businesses in Lahore and similar emerging markets should strategically invest in social media marketing to enhance visibility, foster engagement, and build stronger consumer relationships.

Kaiyi Wang et al. (2023) explore the multifaceted relationship between social media and consumer behavior in a rapidly digitizing global environment. The study acknowledges that the rise of social commerce, online reviews, and algorithm-driven personalization has drastically altered the way consumers approach their shopping journeys.

The paper discusses four core mechanisms:

·                    Social Influence: Consumers mimic the behaviors and choices of peers and influencers.

·                    Personalization: AI-driven content curation tailors offerings to individual preferences.

·                    Advertising: Targeted and retargeted ads shape awareness and intent.

·                    Social Commerce: Integration of shopping within platforms like Instagram and TikTok streamlines purchase behavior.

Wang et al. also caution about negative implications, such as information overload, privacy concerns, and addictive consumerism, indicating that while social media facilitates informed decisions, it also shapes impulsive and habitual behavior.

Ulviyya Rzayeva et al. (2023) focus on how social media platforms shape consumer behavior among young users, particularly through the influence of social influencers. The study draws attention to how social networks act as primary decision-making tools for young consumers, especially when deciding to purchase products recommended on platforms like Instagram, Facebook, and TikTok.

The research argues that social media, as a modernized version of word-of-mouth, has become more powerful than traditional advertising because of:

• Smartphone penetration.
• Always-on connectivity.
• Reliance on influencer validation.

Young people show a strong inclination to follow trends, emulate peers, and trust influencers, often bypassing traditional information sources entirely. The study also notes the political and societal implications of social networks, which are increasingly used not only for brand marketing but also for public communication and policy dissemination.

Sahil Sagar et al. (2024) present a comprehensive study on the digital transformation of the retail industry and its dual impact on management strategy and consumer behavior. This research goes beyond social media to include broader digital trends such as:

• Omnichannel retailing.
• AI-driven personalization.
• Data analytics.
• Supply chain digitization.

The study underscores how digital transformation is reshaping consumer expectations—shoppers now demand instant gratification, personalized experiences, and seamless integration between online and offline touchpoints. Additionally, social media functions as a key touchpoint in this ecosystem, especially in influencing opinions through reviews, influencer content, and live interactions.

Using a mix of case studies and literature synthesis, the paper demonstrates how companies that invest in social listening, e-commerce integration, and real-time engagement outperform competitors in customer satisfaction and market reach.

Social media platforms such as Instagram, Facebook, Twitter, and YouTube have emerged as pivotal drivers in shaping the consumer journey within online retail. Firms increasingly leverage visual storytelling, real-time feedback, and social proof to influence consumer behavior (Efendioglu & Durmaz, 2022).

Influencer Marketing and Trust

Research demonstrates that influencer credibility characterized by expertise, trustworthiness, and attractiveness has a strong positive effect on consumer attitudes and purchase intentions (Ashraf et al., 2023; Chen & Zhang, 2023; Weismueller et al., 2020). Self‑congruence between consumers and influencers (i.e., perceived similarity in values or identity) further strengthens these purchase intentions, especially when combined with strong social presence on live-stream platforms (Nugroho et al., 2020; Sokolova & Kefi, 2019).

User‑Generated Content (UGC) and Peer Influence

UGC including reviews, testimonials, and unboxing videos consistently outperforms traditional ads in trust and authenticity. According to a survey by Ipsos, nearly 90% of shoppers say UGC influences their purchase decisions, with 73% reporting increased confidence in their choices.Further industry data reveals that Gen Z shoppers have near-universal reliance on social platforms for purchase inspiration, with 97% using social media as a primary source and 81% willing to pay more or wait longer for products accompanied by UGC.

The Role of Social Proof and Community Engagement

The principle of social proof where individuals follow actions observed in others underpins much of social media’s persuasive power in digital retail (Cialdini, 1984). Communities formed around brands online foster consumer participation, elevate trust, and contribute to identity formation via online interactions (Cheung et al., 2015).

Consumer–Brand Engagement (COBRA Model)

The COBRA model conceptualizes consumer engagement in three stages: Consumption (viewing content), Contribution (commenting, liking), and Creation (posting brand-related content) (Smit et al., 2011; Schivinski et al., 2016). Active engagement in these stages enhances trust, brand loyalty, and propensity to purchase (Niu, 2025).

Platform-Specific Influence and Affiliate Marketing

Data from e-commerce platforms indicate that influencer and affiliate marketing can account for up to 20% of sales during high-traffic events like Cyber Monday (Adobe Analytics, 2024), underscoring the effectiveness of influencer-linked product recommendations over regular social posts.

In summary, social media influences online consumer behavior through a combination of:

• Authentic narratives by influencers (credibility and congruence).
• Peer-generated content that builds trust and authenticity.
• Social proof mechanisms that encourage conformity and trend adoption.
• Structured consumer engagement pathways that deepen brand relationships.

These multifaceted processes drive not only product discovery and preference formation, but also impulse purchasing, brand advocacy, and long-term loyalty in the digital retail environment.

Trust in User-Generated Content

Multiple studies confirm that consumers place greater trust in peer-generated content such as reviews, unboxing videos, and testimonials compared to brand advertisements. In the fashion retail context, both user-generated content (UGC) and firm-created content (FCC) positively influenced purchase intentions, with UGC often yielding larger effects on credibility and intention to buy. In a broad international survey (n=260), perceived credibility, brand engagement, information quality, and perceived benefit were all significant predictors of a positive attitude toward UGC which in turn significantly increased purchase intention. This evidence suggests that social proof rooted in consumer narratives provides stronger persuasion than direct brand messaging.

Demographics and Behavior

Millennials and Gen Z dominate social media driven online retail engagement. One study among Indian users (age 18–50) found that nearly all major demographics on social platforms belonged to Millennials or Gen Z, with these groups exhibiting far greater responsiveness to trendiness, entertainment, and word-of-mouth stimulation from social media marketing activities.Generation Z demonstrates heightened impulsivity, especially when exposed to flash sales, scarcity marketing, and influencer endorsements which evoke emotional triggers such as FOMO (Fear of Missing Out)

Impulse Buying and Instant Gratification

Social media use whether active or passive increases emotional arousal (enjoyment or depression), which in turn significantly elevates impulse buying rates among youth populations. A focused study on Gen Z in collectivistic cultures confirmed that visual appeal, scarcity promotions, and discounts (all common on platforms like Instagram) strongly stimulate impulsive purchase behaviour via positive emotional response while negative emotions are less influential.

Further, research with Chinese Gen Z consumers showed that online convenience boosted both cognitive and affective attitudes toward impulsive purchasing. These attitudes were further moderated by the presence of social media celebrity endorsements, heightening buying propensity

Brand Loyalty and Engagement

Perceived social media marketing activities (interaction, entertainment, customization, trendiness, and WOM) substantially enhance customer relationship quality which in turn drives brand trust, commitment, satisfaction, and ultimately loyalty in Indian e-commerce consumers (n = 487). In U.S. samples (n = 402), strong positive effects were found linking social media marketing to self-brand connection (β = 0.131), brand equity (β = 0.782), and brand trust (β = 0.800). These constructs jointly explained over 42% variance in brand loyalty, illustrating how digital touchpoints foster repeat purchase and advocacy behavior

Table 1: Key Themes and Empirical Evidence

Social media has dramatically reshaped the landscape of consumer behavior by transforming passive buyers into active participants within the retail ecosystem. Contemporary consumers are no longer mere recipients of brand communication; they actively shape brand narratives through content creation, reviews, sharing, and direct interaction (Hajli, 2014). The convergence of entertainment, information, and commerce on social media platforms has led to the blurring of boundaries between personal and commercial communication, allowing users to fluidly move between roles as consumers, influencers, and brand ambassadors (Appel et al., 2020).

This transformation is closely tied to the participatory culture of Web 2.0, where user-generated content (UGC) holds significant sway over brand perception. UGC not only builds trust but also fosters a sense of community, which is critical for emotional engagement and long-term loyalty (Chu & Kim, 2011). In this context, consumers have evolved into co-creators of value, influencing product development, marketing strategies, and brand equity (Labrecque et al., 2013).

Retailers and marketers must adapt to this shift by acknowledging the social and psychological dynamics that underpin online consumer behavior. Key factors include peer influence, identity signaling, social trust, and emotional resonance (Kim & Johnson, 2016). For example, influencer marketing leverages peer trust and perceived authenticity to influence purchase decisions, particularly among younger demographics (De Veirman, Cauberghe, & Hudders, 2017). Similarly, strategies like gamified content, interactive polls, and live shopping experiences have proven effective in enhancing engagement and driving conversions (Hu, Zhang, & Wang, 2020).

Furthermore, demographic segmentation plays a crucial role in campaign effectiveness. Research shows that Gen Z consumers prioritize authenticity, real-time interaction, and short-form video content, especially on platforms like TikTok and Instagram Reels (Djafarova & Bowes, 2021). In contrast, Millennials respond more favorably to value-driven, cause-oriented, and experiential messaging, emphasizing brand ethics and personalized experiences (Smith, 2012).

These findings highlight the need for nuanced social media strategies tailored to specific audience segments. Rather than one-size-fits-all marketing, success in the current digital landscape depends on hyper-targeted, platform-specific, and emotionally intelligent communication that resonates with consumers' values and identities.

Social media has revolutionized the retail ecosystem by transforming consumers from passive recipients into active participants in brand communication. Platforms like Instagram, TikTok, and YouTube have blurred the lines between personal and commercial content, enabling users to act as critics, creators, and influencers. This shift emphasizes the importance of peer influence, authenticity, emotional engagement, and trust in shaping consumer behavior. Retailers must adapt by leveraging strategies such as influencer marketing, gamified content, and real-time interaction to engage audiences meaningfully. Additionally, demographic preferences should guide campaign design Gen Z responds to short-form, authentic content, while Millennials value experience-driven, socially conscious messaging. To succeed in this evolving landscape, marketers must embrace personalized, interactive, and socially aware approaches, treating consumers not just as buyers, but as co-creators of brand value.