Impact of Social Media on Consumer Behaviour

Social media has fundamentally transformed the landscape of consumer behaviour in the 21st century. With over 5.0 billion active social media users globally as of 2025, platforms such as Instagram, TikTok, Facebook, YouTube, and X (formerly Twitter) have become powerful intermediaries between brands and consumers, reshaping how purchasing decisions are made, how brand loyalty is cultivated, and how information is processed and trusted. This research paper provides a comprehensive, in-depth examination of the multidimensional impact of social media on consumer behaviour. Drawing from an extensive review of empirical studies, behavioural economics frameworks, and digital marketing literature, the paper investigates the psychological mechanisms through which social media influences consumers, including social proof, FOMO (Fear of Missing Out), parasocial relationships with influencers, algorithmic personalisation, and user-generated content credibility. Key findings reveal that approximately 76% of consumers have purchased a product after seeing it on social media; influencer marketing yields an average ROI of $5.78 per dollar spent; and social commerce is projected to reach $2.9 trillion globally by 2026. The paper further explores demographic variations in social media's impact, platform-specific behavioural differences, and the ethical implications of data-driven consumer manipulation. The study concludes with strategic recommendations for businesses seeking to leverage social media marketing effectively while maintaining ethical standards, and identifies critical areas for future research in the rapidly evolving digital consumer landscape.