Social media advertising and consumer buying behaviour among smes in Kampala Central Division

Abstract

This study examined the effect of social media advertising on consumer buying behaviour among SMEs in Kampala Central Division. Specifically, it investigated (i) the impact of electronic word of mouth (e-WOM), (ii) the impact of information credibility, and (iii) the role of Social Media Platforms on consumer decisions. A causal-comparative research design was adopted, using both qualitative and quantitative methods. Simple linear regression analysis assessed how e-WOM, credibility, and Social Media Platforms affect consumer buying behaviour. Data was gathered from 176 respondents (165 SME operators and 11 Vloggers) through structured questionnaires and interviews. The results revealed that Information Credibility has a very strong and significant effect on consumer behaviour (β=0.896, P<0.05), followed by e-WOM (β=0.556, P<0.05), and Social Media Platforms (β=0.584, P<0.05). These findings underscore the crucial role social media advertising plays in shaping consumer choices among SMEs in the area. The study concludes that social media advertising through e-WOM, information credibility, and platform utilization significantly affects consumer buying behaviour. It recommends that SME stakeholders consistently provide accurate and reliable product information on social platforms to enhance customer trust and purchasing decisions. Additionally, SME marketers should diversify their use of platforms to reach varied audiences and ensure product accessibility. Finally, improving internet accessibility across Kampala Central Division is essential to maximize the reach and effect of social media advertising on consumer behaviour.