Volume 02, Issue 10
Published on: October 2026
THE IMPACT OF SOCIAL MEDIA INFLUENCE ON INVESTOR BEHAVIOR AND PURCHASE INTENTION IN THE INDIAN STOCK MARKET
Jeevan H B
Dr.Vanishree.K
Faculty of Management and commerce
Ramaiah University of Applied Science
Gnanagangothri Campus,MSR Nagar, Bengaluru-560054, India
Ramaiah University of Applied Science
Gnanagangothri Campus,MSR Nagar, Bengaluru-560054, India
Article Status
Plagiarism Passed
Peer Reviewed
Open Access
Available Documents
Abstract
In spite of the fast rise in participation of retail investors in the Indian stock market through social media, the available body of literature on the topic has not tried to disentangle which of the above-mentioned elements of 'social media influence' drive investment actions. The purpose of this study was to analyze how social media affects investors and, more precisely, to find out which of the social media-related elements are strong predictors of purchase intention among retail investors in the Indian stock market. A descriptive-cum-analytical approach was used for this study and primary data were collected from 202 retail investors using structured five-point Likert scale questionnaire employing non-probability or convenience purposive sampling method. Social Media Exposure, Perceived Content Credibility, Trust, Social Media Engagement and Herding Behaviour were considered as independent constructs while Purchase Intention was considered as the dependent construct. The data collected in SPSS software underwent analysis based on descriptive statistics, Cronbach's Alpha, Exploratory Factor Analysis, Pearson correlation and multiple linear regression analysis. It was found that all six constructs had acceptable-to-good reliability and each of the independent constructs had positive and significant correlation with Purchase Intention. However, the regression analysis revealed a model to be significant with F(5,196)= 25.410, p < .001, which accounted for 39.3 percent of the variance in Purchase Intention. Among independent constructs, Trust and Social Media Engagement emerged as the two significant individual predictors while Exposure, Credibility and Herding, though having positive correlation with Purchase Intention, lost their significance when other variables were controlled for. Thus, platforms and regulators can expect more benefits out of developing verifiable trust and engaging investors than just increasing exposure of investment content.
Keywords: Social Media Exposure; Perceived Content Credibility; Trust; Social Media Engagement; Herding Behaviour; Purchase Intention; Retail Investors; Indian Stock Market t.
Keywords: Social Media Exposure; Perceived Content Credibility; Trust; Social Media Engagement; Herding Behaviour; Purchase Intention; Retail Investors; Indian Stock Market t.
How to Cite this Paper
B, J. H. (2026). The Impact of Social Media Influence on Investor Behavior and Purchase Intention in the Indian Stock Market. International Journal of Creative and Open Research in Engineering and Management, <i>02</i>(10), 1-9. https://doi.org/10.55041/ijcope.v2i10.036
B, Jeevan. "The Impact of Social Media Influence on Investor Behavior and Purchase Intention in the Indian Stock Market." International Journal of Creative and Open Research in Engineering and Management, vol. 02, no. 10, 2026, pp. 1-9. doi:https://doi.org/10.55041/ijcope.v2i10.036.
B, Jeevan. "The Impact of Social Media Influence on Investor Behavior and Purchase Intention in the Indian Stock Market." International Journal of Creative and Open Research in Engineering and Management 02, no. 10 (2026): 1-9. https://doi.org/https://doi.org/10.55041/ijcope.v2i10.036.
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The research investigated the possible correlations between the social media and the buying intention of the investors who deal in stocks in India. To achieve the study objectives, the researchers collected primary data from 202 respondents and made use of the technique of descriptive statistics, reliability testing, exploratory factor analysis, Pearson correlation technique, and multiple linear regression. Overall, the results have indicated that social media is significantly related to the buying willingness of investors, in that all the analyzed constructs have proven to have a statistically significant correlation with Purchase Intention, and the overall regression model has shown to be statistically adequate explaining 39.3% of the variance in Purchase Intention.Nonetheless, the study’s real contribution is found in the interaction between the five aspects when they are reignited in isolation and tested collectively. Only Trust (β = 0.360, p < 0.001) and Social Media Usage Time (β = 0.198, p = 0.005) emerged as independently significant and valid predictors of Purchase Intention, while Exposure, Credibility, and Herding did not do so. This means that investors’ Purchase Intention is not affected by the simple presence of social media in their lives, the mere perception that the information which is supplied through social media is valid and credible, or even the fact that people are ready to follow the information provided by other people; ongoing interaction with information provided through social media is what influences Purchase Intention the most.
These results bear practical implications for the various stakeholders. Social media platforms and financial content producers should get it that the establishment of verifiable trust based on transparency, track record and real engagement can bring investors much more than the simple pursuit of reach.
By way of regulators like the Securities and Exchange Board of India (SEBI), the results obtained back the argument for stringent regulation for financial influencers as it has been pointed out that social media content triggers investor activity not through reach but through trust, along with the strong evidence in the industry that only a minority of popular creators are registered (CFA Institute Research and Policy Center, 2025). With respect to investor education initiatives, the important conclusion drawn here is that literacy initiatives should be focused on more than just providing generic information about the riskiness of social media, but on giving investors an understanding of how much trust they can put in the sources of information and in what manner they can deal with such sources.
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- •Peer Review Type: Double-Blind Peer Review
- •Published on: Oct 07 2026
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