Influence of Internet Economy in Consumption

CONTENTS

Contents…………………………………………………………………...…………Page No.

1. Introduction……………………………………………………………………...……...3

1.1 Literature Review …………………………………………………………….….3-4 1.2

Research objectives ………………………………………………………………..4 1.3

Research Questions…………………………………………………………...……4 1.4

Research Methodology……………………………………….…………...…...…4-5 2.

Impact of usage of social media in innovation and entrepreneurship……………..6-11

2.1. Success stories in social media…………………………….………………………..8-11

3. Consumption of online educational services affect student’s behaviour………….12-16

4. Demand in the consumption of OTT services during the pandemic……………...17-19

5. Conclusion………………………………………………………………………...…..20

6.

Bibliography…………………………………………………………………………21-22
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1. INTRODUCTION:

"There are decades when nothing occurs, and weeks where decades happen,"

Year 2020 the year from when on pandemic began is very much evident of the latter.
Digitalization is basically the buzzword of the twenty-first century. Almost everyone from the
youngsters to the elderly are surrounded by laptops, computers, tablets, and cell phones using
it in everyday life activities be it communication purposes or for educational or for
entertainment purposes. Digital technology is vastly advancing, and virtually all industries are
evolving with it. The recent Covid 19 pandemic has affected the pace and scope of digital
transformation in many sectors and has fuelled the growth of online services vastly. This
consumption of internet which has been in existence since prior to the pandemic and which
grew rapidly after the pandemic is an important part of the booming consumer market. The
topic which is influence of internet economy in the consumption has its base of the pandemic.
Because it is during the pandemic where there was evident change in the consumption style of
the people --- Due to social distancing norms – with that of physical movement kept to
minimum and nationwide lockdowns, the pandemic has necessarily resulted in an increase in
the usage of digital technology and almost acted as the lifeline of it.
 1.1. Literature Review

Consumption of OTT Media Streaming in COVID-19 Lockdown: Insights from PLS

Analysis:

This article discusses views concerning the shift in consumer media consumption notably
during the Covid-19 shutdown period which resulted in the battle amongst the streaming
service providers to recruit and maintain subscribers. It examines consumers media
consumption behaviour in light of the change induced by the pandemic. It further delves into
the role of satisfaction and habit in affecting the consumption of the OTT services.

The Influence of Internet Economy on High School Students’ Consumption Concept

The article focuses on the analysis of the development status of the Internet Economy and the
Characteristics of high school student’s consumption concepts. And, basically on its basis it

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expounds on how to guide high school students to form the correct consumption concepts
under the internet economy from the three dimensions of school, family and individual. And
provides for favourable and unfavourable point of views on the internet economy’s influence
on the high school students.

The Impact of Social Media on Business Growth and Performance in India This article
examines the elements that influence student entrepreneurship's use of social media as a
commercial platform. It dives into the elements that contribute to the use of social media as a
platform, particularly among student entrepreneurs. It highlights the most popular and
fascinating social networking platforms from a corporate standpoint, such as Facebook,
Instagram, and Twitter. However, it claims that social media increases the breadth of
reputation threats. It indicates that social media may be used for more than simply
socialising; it can also be utilised for hiring and introducing companies. According to the
problems and potential of social media, the notion of social media is at the top of many
corporate leaders' agendas today.

1.2. Research Objectives

1. To find out the impact of usage of social media in innovation and entrepreneurship
 2. To understand the effect of consumption of online educational services in student's
behaviour

3. To find out the demand in the consumption of OTT services during the pandemic

1.3. Research Questions

1. What is the impact of usage of social media in innovation and entrepreneurship? 2. How
does consumption of online educational services affect student's behaviour? 3. Why is there
an increasing trend in the demand in the consumption of OTT services during the pandemic?

1.4. Research Methodology

This assignment is prepared using secondary and primary sources of information. Secondary
sources were liberally used. Secondary sources are sources which interpret and analyse
primary sources. They are created by someone who did not experience first-hand or
participate in the

4
events or conditions while researching. The researcher has depended on secondary data like
journal articles, websites and research papers to determine consumer’s behaviour. Along with
that, primary sources of information were used by the researcher in the making of this
assignment which included basic online surveys and interviews to determine social media’s
marketing strategies. Primary sources are documents, artifacts, or data created during the
specific time period being studied. Documents from the first publication cycle such as
newspaper articles, letters, or research notes, etc, are considered primary sources.
 5
2. IMPACT OF USAGE OF SOCIAL MEDIA IN
INNOVATION AND ENTREPRENEURSHIP

In this age of Information Technology, our daily tasks which used to be dependent on people
are now carried out by IT applications. Our dependence on social media websites is huge. It is
not only restricted to domestic lives but also has a great impact on running businesses in the
world. The use of social media is increasing rapidly. It is not just restricted to social
networking activity but is also used by entrepreneurs to follow the new relevant trends in the
market. Mostly small to medium scale businesses are using social media platforms like
Facebook, Instagram, Snapchat, YouTube, etc. as compared to large organizations. Today, the
internet is a widely used mode for interaction. Small and mid-size enterprises (SMEs) are
businesses that have revenues, assets, or a number of employees below a certain threshold.
SMEs play an important role in the economy of any nation. These types of businesses have a
high potential to generate jobs, increase exports and bring innovations to young
entrepreneurs. SMEs are a fertile ground to experiment with new forms of innovation in order
to empower young entrepreneurs. This cannot be achieved unless a strong supply chain is
created to improve competitiveness social media is, then, an asset in the hands of young
entrepreneurs who seek to connect with their ecosystems. It has been found that social
networks help entrepreneurs to have access to not only tangible resources, such as labour and
capital, but also to intangible resources, including social support, information, reputation and
risk-taking habits. Moreover, social networks make it possible for entrepreneurs to create new
business ideas, and enhance business performance. Another way these networks can benefit
business is by alleviating uncertainty and enlightening decision-making. Access to venture
capitalists is another key benefit provided by social networks, as investors are more likely to
be interested in business proposals by people in their networks. Intangible resources, such as
knowledge and experience through social networks, are also key factors of the success of
startups. Entrepreneurs use social media for different reasons, such as mobilizing financial
resources, connecting with potential investors in an attempt to get funding, and connecting
with other startups. Another use of social media is to consult with advisors for knowledge
creation, the process of innovation and innovation capabilities, which allows them to find
more opportunities. Moreover, novice entrepreneurs and CEOs of established companies
seem to be looking for different things via social media: the former would search for any type
of support from any source, while the latter

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are more interested in knowledge and experience. In developing countries, entrepreneurship
growth has increased by e-commerce. Like, Chinas’ biggest online shopping store,
Alibaba.com, is making a lot of business. Other online stores are Amazon, AliExpress, eBay,
etc. These stores advertise their products on social media, through which their customers or
followers increase. Today, leaders get benefit from these social media platforms by
formulating strategies for the growth of their business. Building a firm relationship is
imperative for progress, entrepreneurs in general utilize social media to share data and find
better chances. Business visionaries additionally endeavour to extend their interpersonal
organizations and online interchanges to find new thoughts. Individuals who effectively
utilize social networks should get more information and change the data obtained. Social
media can raise the attention to platform changes and client conduct & go about as a trigger
for making an opportunity that fulfills client needs. Social media has many tools that help
entrepreneurs for the success of their business. These tools gather like-minded people on a
large scale. The social network contains much information about the customers and the
competitors. The most important strategies for using social media channels are to make
contributions, share valuable content, and connect with the appropriate network . These tools
are valuable for lead generation.

It has made communication easy for users. Millions of users are spending much of their time
interacting on social media sites for personal or professional use. Social media is a tool that
provides a platform to an individual or a team to build a public profile so that it could be
shared with or view by others. It is a good communication platform where conversation can
be done directly. Social media helps a lot in business growth. It is a supportive technology to
increase customers. Social media gathers the customers and the entrepreneurs on a single
platform to share and communicate their views with each other. Most of the companies use
social media for marketing. Marketing is defined as a procedure to find what products or
services can be attracted to customers. Companies are spending much on their brand
promotion, advertisement, or awareness. In marketing, the important tasks are to find target
customers, a suitable social media platform for advertisement, consumers’ choice, etc. to give
related information. Through marketing, people get awareness about the products, their
quality, and price. Social marketing is a popular and effective way of getting vital information
that is essential to the success of one’s business. Social media is a source of shared
communication between the customer and the organization. Communication helps in building
customer relationships by understanding the needs of the customers and those needs should
be fulfilled by the organizations. The relationship between leaders and their clients is
facilitated by the new technologies i.e., social

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media platforms. Innovation in social media brings a variety of communication tools. For
example, Facebook allows the user to broadcast their messages by updating a status. Social
media usage easily provides information about the latest trends, competitors, and customer
needs. It has made information accessible to everyone. This is a platform where people come
to know about the opportunities they can have. Platforms like Twitter, Facebook, LinkedIn,
Instagram, and YouTube allows the users to interact with each other.

Success stories in social media

Below presents two SME’s that leverage social media in doing their business successfully.
Examples of their business along with some takeaways are provided so anyone can
benchmark to include in business efforts. We're starting to see more and more big brands
bring social media to "real life" by creating viral stunts like this one. The print screens below
will depict how
SME’s promote their business in social media and have succeeded in their endeavour.

Figure 1 and Figure 2, depict a post by a baker based in Guwahati who sells her products
entirely through social media and has gained considerable amount of customers from 2015.
The baker has won recognition as the Home Baker of the Year 2020 by Guwahati Food
Awards. In conversation with the entrepreneur, it was found out that, social media had played
a very important role in the business as constant engagement could be done through social
media. On asking how the business grew, the baker said that the business was promoted on
Instagram after which customers purchased it and put on stories and posts on different social
media sites because of which assurance was built and revenue was created. According to the
entrepreneur, 10 % of her orders could be attributed to the social media platform Facebook,
30% could be attributed to word of mouth and 60% to Instagram . Giving constant updates
and posts, good pictures and showing the customers the work helped the entrepreneur in
growing her business. “The more flashy it looked, the more people texted for , depiction of
work attracts the people.

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Social media is complicated. You either do business or manage sm. You need to invest time.”

Figure1,2: An Instagram post of the

business of @the_cake_freak dt. May 3,2022
Figure 3, 4,5,6 depicts a business of mandala, resin, acrylic and home décor product based in
Guwahati. If one goes through the profile the profile looks aesthetically pleasing which
depicts the hard work and perseverance to build it. The business was started four years ago
through the social media platform, Instagram. The entrepreneur envisioned a website to sell
products although the vision was transferred to the social media platform Instagram. Selling
was done mainly through posts and stories. Feedbacks from customers played in big role in
success of the entrepreneur and resulted in a two way advantage. Firstly, it helped build a
bunch of customers. Secondly, it motivated the entrepreneur build confidence to work ahead.
To sustain a business is difficult in a city like Guwahati where the revenue generated is not
quite good so there is a need to have a side income until one is not fully established. Social
media did help in building business but it also had a different side of likes, followers,
comparison with pther businesses which might demotivate and affect the mental health of the
entrepreneur. “Social media is business is all about keeping up with the trend, showcasting
one’s work attractively is all that matters. Social Media has the power to build and ruin as it
helps in building businesses as well as affects the mental health of the entrepreneur. Daily
consistentency and updates is a must to build one’s business. This is what helped me thrive.” -
musie.susie

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Figure 3,4,5,6: An Instagram post of the business @musie_susie dt. September
15, 2021

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Figure 7,8 and 9 depict a post by designer Jita Konwar of her business, kaxhori. This business
exclusively sells pure silk and muga mekhela sador and gains profits like no other mekhela
selling business.
 Figure 7,8,9: An Instagram post of business by
@kahori dt.March 16, 2022
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3. CONSUMPTION OF ONLINE EDUCATIONAL
SERVICES AFFECT STUDENT’S BEHAVIOUR

Hereunder it is very pertinent to note a particular age category of people which is that of 16
and above which had essential role in the increasing consumer market and are highly impacted
by the influence of the internet economy. School and college students are in a critical period of
the formation of world outlook, outlook on life and values, and their consumption concepts
are easily influenced by the subtle influence of the Internet economy. The huge number of
Internet users among students is an important part of booming consumer market and has laid
a solid user base for the development of the Internet economy. Especially during the
pandemic, it has come into the observation that students has increasingly become an
important part of the Internet consumption market, and its consumption concept is also deeply
influenced by the Internet economy. Therefore, based on the current situation of Internet
development and the characteristics of high school students’ consumption concepts with that
of the analysis of the development status of Internet economy and the characteristics of high
school students consumption concept can lay a realistic foundation for a better understanding
of the impact of Internet economy on students consumption concept and use of the internet
and social media has both positive and negative impact on students’ social life with that of
which is evident during the pandemic. The quality of education is assumed to differ between
online and face to-face studies; therefore, we start by discussing the importance of educational
quality and its effects on individual productivity and earnings. The evidence on students’
academic success and the factors affecting performance in online versus traditional courses
has been mostly inconclusive. The pandemic caused a necessary shift in the education system
from the traditional to online mode. We can try to understand this with the concept of PPM-
Push Pull Mooring Model. This model is frequently seen to be used in exploring the shifting
intentions taking into account important factors that motivates on leaving the initial position
and relocating to some new position. Push basically has the negative motivating elements and
pull basically being the positive ones. Taking a little glimpse to that of the push factors we get
to see that comfortable educational environment with that of personalized space. To a certain
extent it has been observed that traditional face-to-face classrooms in schools or training
institutions of the past; overly complex learning environments or crowded schools or
classrooms produced various problems and, thus, affected academic performance of the
students. It is evident that students would choose to stay away from traditional, offline courses
to avoid security risks during the COVID-19 pandemic when they realize that such risks stem

12
from the external environment. Basically, higher the perception of the impact of the university
students on safety risks, the lower their acceptance of learning in physical courses and the
higher their intention to switch to Online mode of acquiring their education. Now
understanding of the factors promoting students to switch from the traditional learning model
to the model based on online learning platforms aka pull factors we get to see that online
educational platform enables users to gain professional benefits in specific forms such as
practical skills for earning a promotion, seeking a job, or starting a business. It also help to
realize self-development-oriented education or educational benefits. It is also see that
attributes of IT, such as quality, ease of use, and usefulness, affect the attitude of the users,
emotions, beliefs, motivation, and self-efficacy regarding the information system here under
suggesting that during the pandemic, learners identified the usefulness of the online learning
platforms students being more willing towards accepting the change from the traditional
offline mode to the online mode. With that of moving towards the third factor which is that of
mooring. The mooring factors in this study referred to the negative factors that hindered
individuals from switching from the traditional environment to the online environment.
Switching costs are regarded as a crucial mooring factor; they are important explanatory
variables for switching behaviour regarding platforms and a decisive factor that determines
and regulates customer satisfaction. Switching costs are the costs incurred by a user as a
direct result of switching from the status quo to a new situation. Moreover, the concept of
switching costs varies among different situations. In addition, the cost of learning during the
transition from traditional, offline learning to online learning environments is considered as a
key factor affecting learning efficiency of the students. Hence it is to be observed, that weaker
the relationship between the pull factors and the switching intentions of the students, the
higher the switching cost.

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Figure 10: Push -pull-mooring model

We got to see how students in the online mode were using many educational platforms like
that of the very mandatory google meet or zoom for attending their regular classes and some
other informative sites were seen being used at very high rate with that of used for self
development-oriented education. Students in high school and college are at critical stage of
developing and creating their worldview, attitude on life, and values, and the subtle effect of
the Internet economy has a significant impact on their consumer conceptions. Students have
undergone several changes in their researching and data collection skills during this long
period of break from the offline learning, from what is been seen and analysed this type of
learning environment basically, is seen to increase the learning potential of the students. It has
been seen that the technological knowledge has been enhanced to a moderate level. Students
are seen opting for different kinds of online form of acquiring knowledge through many
educational sites merely anywhere and anytime, thereby developing new skills in the process
leading to life-long learning. Also there has been emergence of many online mode of
coaching centres especially in the India for aspirants of medical, engineering, law for their
competitive exams like NEET, JEE, CLAT etc. In a country like India the perks of Online
education and its influence over the people in such times of crisis cannot be ignored.

Internet access and smartphone ownership rates in these emerging and developing nations are
greatest among the well-educated and the young, that is those of Gen Z which is a
demographic

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aged 16 to 26 now make up 40% of consumers who came of age in an era of massive
technological advancement. The new millennium has seen the world transforming from a
handicraft and manufacture-based economy to one that relies heavily on technology and
innovation. Make up-tutorials, life hacks to avoid waste, vegan food recipes, or insights into
their private life—these and many other topics have led so-called social media influencers to
become significant figures in many adolescents’ lives. Additionally, the content provided by
social media influencers fits adolescents’ frame of reference, since they are often close in age
to their audience. As a consequence, watching videos by social media influencers has even
become more important than watching traditional television programs for many adolescents
these days. Many people engage in content creating are basically seen to be initially opting it
as some kind of alternative income source and later they are seen to almost make a business
out of it, there are very much well known youtuber who have multiple accounts and almost
clothing-merch business, this is seen to be the most usually taken path. And not just that
people in their professional career opting for mass media or digital marketing are mostly seen
to be very much active in social media sites. In the time of increasing present day online
marketplaces, the notion of sales and marketing have come a long way. We are now in the
“Relationship era” where companies prioritize engaging and retaining consumers through
loyalty programs and personalized social media content. With the rapid penetration of social
media platforms such as Facebook, Instagram, YouTube, Twitter, TikTok (though banned
later but was a very engaging influencer market), India’s marketing scene has also undergone
an overhaul as marketers switched from traditional marketing and advertising methods to the
digital plane. It has been noticed that when the covid 19 precipitated with the massive decline
in traditional advertising, social media influencers witnessed a 46% increase in their ad-based
revenue. The digital marketing agencies in India conducted a survey among 250 marketers
and social media influencers in Feb 2022. It was found out that as the pandemic threw up a
major challenge for offline marketing activities across India, brands turned to social media to
amplify their messages. The survey further indicated that micro-influencers (individuals with
having 500 to 10,000 followers) are witnessing up to 60% rise in engagement rates compared
to macro-influencers (individuals having 10,000 to 1 million followers). The fundamentals of
advertising haven’t changed: telling the right story in the right place, to the right people. But
every one of those concepts has fundamentally changed with the digital era. So what is the
right story? Well, there’s a lot of power in native content by creators and user-generated
content by brand audiences, followers tend to relate to the

15
creators they subscribe to and, most importantly, they listen to them. Now coming to where is
the right place? The answer to this is “Digital media” where consumers spend most of their
time and can be individually tracked. And to the question on who are the right people? These
are the active audience management shows who respond to content, identified through first
party data. Their domain has expanded beyond content creation and now they are becoming a
brand themselves. Influencer marketing’ would play a significant role in this as it continues to
dominate digital marketing plans. The impact and reach of influencers have grown since
2021.
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4. DEMAND IN THE CONSUMPTION OF OTT SERVICES
DURING THE PANDEMIC

Digitalization across the globe has changed the way media is consumed. Increase in number
of internet connections, better networks, technological innovations and availability of smart
devices have resulted in the rise of new OTT media that offers services to viewers directly via
the internet. Over the top media platform is a streaming media service offered directly to
viewers via the internet. It bypasses cable, broadcast, and satellite television platforms. The
prominent players among the OTT platforms in India are ‘Netflix’ and ‘Hotstar’. India is
expected to become second biggest OTT market after the US with over 500 million users in
2020. The emergence of Jio is the driving force for the growth of OTT platforms in India. It
provided cheap data and since then India became the second country on the basis of data
usage. The acceptance of the platforms was remarkable signifying a greater change over in
the near future. Covid-19 pandemic and the across the nation lockdown has not only slowed
down the growth of the enterprises and financial outcome, yet has additionally prompted
change in the behavioural pattern of the individuals towards consumption of products and
services, including that of digital based consumption. The transition is the consumer
behavioural patterns brought about by the lockdown implemented by the Government of
India and hypothesized that a significant number of these social changes are not transient in
nature; they are probably going to remain long haul.

Many production houses have become busy trying to connect to their audiences by releasing
their movies/shows on these platforms owing to the nationwide closure of multiplexes and
cinema halls. As of now, with its freemium features, Disney+ Hotstar is ruling the hearts of a
roaring 400 million Indians followed by Amazon Prime, Netflix, BigFlix, ZEE5, VooT, Sony
Liv, Eros Now and other independent content creators like TVF, Spuul, Scoopwhoop, Zoom
Studios and Arré. The OTTs have opened up whole new vistas for content creators and in
recent times, a huge surge has been seen in their consumer trends.

The figure below shows the result of a study with a sample size of 491 respondents (52.55%
females and 47.45% males) with 93.08% of the respondents ranging in the age groups of 18-
30 from different parts of India about OTT watching time of respondents before and after
CoVId. It can be seen that there has been an increase in the watching of OTT services.

17
Figure 10: Use of OTT services before and after COVID-19

Fig.10 shows the OTT Watching time of respondents before and after the onset of COVID-19.
In regard to our question on how much time they spend on OTT platforms before and after the
COVID-19 outbreak, the viewers’ responses are shown in the following table.

Table-I shows that 6.5% of the respondents whose watch time was upto 6 hours before
COVID 19 increased to 19.6% after the onset of COVID-19. Also, there is a massive decline
in the two hours watch time column. Four hours watch time column is standing steady before
and after COVID-19. In both male and female categories, watching alone bar is highly set.
When asked about the reasons, a few of them responded saying that their focus will be
deterred with people around and that they are afraid of being judged for the content they
watch.

Due to gradual increase of internet penetration in the market the future of OTT platforms is
bright. India is a price sensitive country having diverse culture, so the viewership of watching
movies, TV shows, sports etc on DTH cable operators is creeping mostly in rural areas due to
lack of high speed internet services. However this limitation is been slowly eradicating as the
 18
digital infrastructure of India is in process of installing cables in rural region. Thanks to
Reliance jio which is offering affordable smart phones with cheap data plans to those who
can’t afford laptop, smart TV, tablets etc. In India OTT content is consumed mostly on
handheld devices like smart phones .If we talk about millennials which comes under the
generation Y category they don’t have patience to wait for movies, TV shows etc to air on
television. They want to watch the content just like preparing maggi noodles which is
masaledaar, instant and on demand. Binge watching movies, TV shows, web series etc on
OTT platforms have become part of their daily routine. Corona virus has disrupted the
smooth functioning of many businesses especially tourism but for OTT platforms and other
organizations involved into business of online content delivering it is a blessing in disguise
and opportunity of growth. Due to lockdown binge watching has significantly increased
among millennials as watching movies, TV shows, sports, web series etc on OTT platforms
have become their only option for home entertainment. This research talks about six major
which encourages millennials to adopt OTT services

(1) Content availability

(2) Innovation in content

(3) No of Ads insertion

(4) audio and video quality

(5) price

(6) overall experience.

At the end what matters to consumers especially millennials is that the OTT platform which
they have subscribed to is affordable ,offers good and innovative content, provides best audio
and video quality, lastly contains minimum no of ads or even no ads during streaming of
video.
 19
5. CONCLUSION

The patterns of consumption have changed drastically over a period of the last 20 years and as
technology is making advancements in almost every arena, the evolution can be seen in the
trends of entertainment, educational services, and media services. Mostly small to medium
scale businesses are using social media platforms like Facebook, Instagram, Snapchat,
YouTube, etc. as compared to large organizations. The pandemic further caused a necessary
shift in the education system from the traditional to online mode. Students in the online mode
were using many educational platforms like that of the very mandatory google meet or zoom
for attending their regular classes and some other informative sites were seen being used at
very high rate with that of used for self-development-oriented education. These are the active
audience management shows who respond to content, identified through first party data.
Today, the internet is a widely used mode for interaction Over-the-top (OTT) video streaming
services that offer direct streaming services to the viewers have been gaining popularity
throughout the world in the past few years. The outbreak of COVID-19 saw a robust increase
in viewership of over-the-top (OTT) media platforms.
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