Economic Impact of Social Media Engagement on Consumer Spending: A Comparative Study of Facebook and Instagram

ABSTRACT: The rapid digitalization of economies has transformed traditional consumer behaviour, with social media emerging as a key driver of economic transactions. Facebook and Instagram, two of the most influential platforms, play a pivotal role in shaping consumer purchase decisions. This study aims to examine the economic implications of social media engagement, focusing on how customer interactions such as likes, shares, comments, and brand posts which affect purchasing behaviours and contribute to the revenue generation of businesses in the fashion, beauty, and apparel industries. The research explores the extent to which consumer engagement on social media influences purchasing decisions, how gender-based differences impact engagement levels, and which platform: Facebook or Instagram has a more significant economic influence on consumer spending. By employing a quantitative research methodology including a combination of both primary and secondary research, the study surveys respondents from Kolkata who actively use social media for shopping related activities over the recent years. Statistical tools are used to analyze the data. The findings of this study will provide valuable insights into the economic significance of social media marketing, helping businesses optimize their digital strategies to enhance consumer engagement and increase sales. This research also contributes to the broader field of digital economies by highlighting the role of social media platforms in driving market transactions, influencing consumer demand, and contributing to overall economic activity in the online retail industry. Key Words: Social Media Economics, Consumer Behavior, Digital Marketing, Economic Impact, Facebook, Instagram, Online Purchasing, E-commerce, Market Trends