Project – The Influence of Social Media Consumption on Spending Behaviour and Financial Decision-Making among Polytechnic Students

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The emergence of digital technologies has significantly transformed human communication, social interaction, consumption patterns, and economic behaviour across the world. Among the most influential digital innovations of the twenty-first century is social media, which has evolved from a communication platform into a powerful environment where individuals interact, exchange information, promote products, build personal identities, and make purchasing decisions. Social media platforms such as Facebook, Instagram, TikTok, YouTube, Snapchat, and X (formerly Twitter) have become central aspects of everyday life, particularly among young people who constitute the largest category of digital technology users globally. Beyond their social functions, these platforms have increasingly become commercial spaces where businesses, influencers, and consumers engage in marketing activities that influence attitudes, preferences, and spending decisions (Kaplan & Haenlein, 2010).

The rapid growth of social media usage has created new dimensions of consumer behaviour. Unlike traditional media channels such as television, radio, and newspapers, social media enables interactive communication between consumers and brands. Users are no longer passive recipients of advertisements; rather, they actively participate through comments, reviews, recommendations, content sharing, and online purchasing activities. According to the DataReportal (2024), billions of people worldwide actively use social media platforms, with young adults representing the most engaged demographic. This extensive exposure to digital content has created a situation where consumers are continuously influenced by online trends, peer opinions, celebrity endorsements, influencer marketing, and targeted advertisements.

The influence of social media on consumer behaviour has attracted significant scholarly attention because digital platforms increasingly shape how individuals perceive products, evaluate alternatives, and make purchasing decisions. Social media marketing allows companies to directly target consumers based on their interests, online activities, demographic characteristics, and browsing patterns. Through algorithms and personalized advertising, social media platforms expose users to products and lifestyles that may influence their consumption preferences and financial choices (Dwivedi et al., 2021). Consequently, social media has become an important factor affecting spending behaviour, especially among young consumers who are highly connected to online environments.

Spending behaviour refers to the patterns, habits, and decisions individuals demonstrate when allocating financial resources toward goods and services. It includes purchasing frequency, consumption preferences, budgeting practices, impulse buying tendencies, and expenditure priorities. Financial decision-making, on the other hand, involves the process through which individuals evaluate and select financial alternatives relating to spending, saving, investment, borrowing, and money management. Both concepts are closely related because the decisions individuals make regarding consumption directly influence their overall financial well-being.

Among young adults, particularly students, social media consumption has become increasingly associated with changing spending patterns. Students are among the most active users of digital platforms because social media provides opportunities for communication, entertainment, academic engagement, networking, and commercial interaction. However, frequent exposure to consumer-oriented content may encourage behaviours such as impulse purchasing, unnecessary consumption, lifestyle comparison, and preference for material possessions. Social media influencers, online celebrities, and peer networks often promote fashion trends, electronic gadgets, beauty products, restaurants, travel experiences, and other lifestyle goods, which may influence students’ desire to purchase products beyond their financial capacity.

The relationship between social media and consumer behaviour can be explained through several theoretical perspectives. The Theory of Planned Behavior (TPB) developed by Ajzen (1991) suggests that individuals’ behaviours are influenced by their attitudes, subjective norms, and perceived behavioural control. In the context of social media consumption, students may develop favourable attitudes toward products promoted online, perceive purchasing trends as socially desirable due to peer influence, and make buying decisions based on their perceived ability to afford such products. Similarly, the Social Learning Theory proposed by Bandura (1977) explains that individuals learn behaviours by observing and imitating others. Students may therefore adopt consumption patterns displayed by influencers, friends, and online communities.

Another relevant perspective is the Consumer Socialization Theory, which explains how individuals acquire knowledge, attitudes, and behaviours related to consumption through social interactions and environmental influences (Moschis & Churchill, 1978). In the modern digital environment, social media has become one of the strongest agents of consumer socialization among young people. Through continuous exposure to online content, students develop perceptions about fashion, status, lifestyle, and acceptable consumption patterns. This process may positively influence financial decisions by providing information about products and prices, but it may also encourage excessive spending and poor financial management.

Globally, research has demonstrated that social media influences purchasing behaviour through mechanisms such as electronic word-of-mouth (eWOM), influencer credibility, online reviews, and social comparison. Erkan and Evans (2016) found that social media information significantly influences consumers’ purchase intentions because users often rely on recommendations and opinions shared online when making buying decisions. Similarly, Djafarova and Rushworth (2017) reported that social media influencers significantly affect young consumers’ purchase decisions, particularly on platforms such as Instagram, where lifestyle presentation and product promotion are highly integrated.

The growth of influencer marketing has further intensified the relationship between social media and spending behaviour. Influencers often present carefully constructed lifestyles involving luxury fashion, expensive gadgets, travel, beauty products, and premium experiences. For young consumers, repeated exposure to such content may create aspirations to replicate these lifestyles. According to Lou and Yuan (2019), influencer-generated content affects consumer trust and purchase intention because followers often perceive influencers as relatable and credible sources of information. However, this influence may also contribute to unrealistic consumption expectations and financial pressure among students with limited income sources.

In addition to influencing purchasing decisions, social media consumption can affect students’ financial decision-making processes. Financial decisions involve choices regarding saving, budgeting, spending priorities, and resource allocation. Students with high levels of social media engagement may spend more money on products, services, and experiences promoted online. The ease of accessing online marketplaces, digital payment systems, and mobile shopping platforms has further reduced barriers to consumption. As a result, students may make quick purchasing decisions without adequate consideration of financial consequences.

Impulse buying represents one of the major financial behaviours associated with social media consumption. Impulse buying occurs when consumers make spontaneous purchasing decisions without prior planning or careful evaluation of financial implications. Research by Aragoncillo and Orús (2018) indicates that social media environments can stimulate impulse purchases because consumers are continuously exposed to attractive products, limited-time offers, and persuasive marketing messages. For students managing limited financial resources, frequent impulse buying may negatively affect budgeting practices, savings behaviour, and financial stability.

The Nigerian context provides an important setting for examining the relationship between social media consumption, spending behaviour, and financial decision-making among students. Nigeria has experienced remarkable growth in internet connectivity and digital technology adoption, particularly among young people. According to the Nigerian Communications Commission (NCC, 2024), internet usage continues to expand rapidly, with social media platforms becoming major channels for communication, entertainment, entrepreneurship, and commerce. Nigerian youths increasingly use platforms such as Instagram, TikTok, Facebook, and WhatsApp not only for social interaction but also for discovering products, following trends, and engaging in online shopping.

The increasing popularity of social commerce in Nigeria has further strengthened the connection between social media and consumer behaviour. Many small businesses and entrepreneurs now rely on social media platforms to advertise and sell products directly to consumers. Students frequently encounter advertisements for clothing, food delivery services, electronic devices, cosmetics, online courses, and other consumer goods through their social media feeds. While this development creates opportunities for entrepreneurship and access to affordable products, it also increases exposure to persuasive marketing strategies that may influence spending decisions.

Polytechnic students represent a particularly important group for studying this relationship because they are young adults experiencing increased independence in financial decision-making. Unlike secondary school students, many polytechnic students manage personal expenses relating to transportation, accommodation, feeding, academic materials, social activities, and personal needs. However, many students have limited income sources and depend primarily on parents, guardians, scholarships, or part-time employment. Therefore, decisions influenced by social media exposure may have significant implications for their financial stability.

Yaba College of Technology (YABATECH), located in Lagos State, provides an appropriate context for examining the influence of social media consumption on students’ financial behaviour. Established as Nigeria’s first higher institution of technical education, YABATECH has a diverse student population comprising individuals from different socioeconomic backgrounds pursuing programmes across various schools and departments. Located within Lagos, Nigeria’s commercial centre and a major hub for technology, entertainment, and digital commerce, students of YABATECH are highly exposed to social media platforms, online businesses, digital advertisements, and consumer trends.

The financial environment in Lagos makes this study particularly relevant. The increasing cost of transportation, accommodation, food, academic materials, and daily living expenses places significant financial demands on students. In such an environment, poor financial decision-making resulting from excessive social media influence may create additional financial challenges. Students who frequently engage with consumer-oriented social media content may experience pressure to purchase fashionable products, maintain online appearances, or participate in trending consumption activities, potentially affecting their ability to budget effectively and manage limited resources.

Despite the widespread use of social media among Nigerian students, there remains limited empirical evidence regarding how social media consumption influences their spending behaviour and financial decision-making. Existing studies have extensively examined social media marketing effectiveness, online purchasing behaviour, and consumer attitudes, but fewer studies have focused specifically on the financial implications of social media use among tertiary institution students. In particular, limited attention has been given to polytechnic students, who represent a significant segment of Nigerian youths navigating financial independence and digital consumption environments.

Understanding this relationship is important because social media is unlikely to decline in influence among young adults. Instead, digital platforms will continue to shape consumer behaviour through personalized advertising, influencer marketing, and online communities. Therefore, examining whether social media consumption encourages responsible financial decisions or contributes to excessive spending among students is essential for promoting financial awareness, responsible consumption, and improved money management practices.

Against this background, this study seeks to investigate the influence of social media consumption on spending behaviour and financial decision-making among polytechnic students, with specific reference to Yaba College of Technology (YABATECH). The study aims to provide empirical evidence on how students’ engagement with social media affects their purchasing patterns, financial choices, and overall financial management practices.

1.2 Statement of the Problem

The increasing dominance of social media in the daily lives of young adults has created significant changes in the way individuals communicate, access information, interact with businesses, and make consumption decisions. Among tertiary institution students, social media platforms have become important sources of entertainment, social interaction, product discovery, and commercial engagement. Platforms such as Instagram, TikTok, Facebook, YouTube, and WhatsApp expose students to continuous streams of advertisements, influencer content, peer recommendations, lifestyle displays, and online shopping opportunities. While these developments provide benefits such as access to market information and convenient purchasing channels, they have also raised concerns regarding their possible influence on students’ spending behaviour and financial decision-making.

The problem arises from the possibility that excessive exposure to social media content may encourage consumption patterns that are inconsistent with students’ financial realities. Many students in Nigerian polytechnics operate within limited financial circumstances, depending largely on parental support, guardians, scholarships, or irregular sources of income. Despite these financial limitations, social media platforms frequently promote lifestyles associated with luxury, fashion trends, entertainment experiences, and consumer products. Continuous exposure to such content may create pressure among students to purchase items they may not necessarily need in order to conform to perceived social expectations or maintain online identities.

One major concern associated with social media consumption is the growth of impulse buying behaviour among young consumers. Unlike traditional shopping environments where consumers may have more time to evaluate purchasing decisions, social media platforms provide immediate access to products through advertisements, online stores, influencer promotions, and personalized recommendations. The convenience of digital purchasing combined with persuasive marketing strategies may encourage spontaneous buying decisions without adequate consideration of financial consequences. For students with limited financial resources, frequent impulse purchases may negatively affect budgeting, savings, and overall financial stability.

Furthermore, social media has intensified the phenomenon of social comparison among young adults. Social comparison theory suggests that individuals evaluate themselves by comparing their achievements, lifestyles, and possessions with those of others (Festinger, 1954). On social media, students are regularly exposed to carefully presented images of successful lifestyles, expensive possessions, fashionable clothing, vacations, and social experiences. Such exposure may create feelings of inadequacy and encourage individuals to engage in compensatory consumption by purchasing products or services to project similar lifestyles. This behaviour may influence students’ financial priorities and lead to spending beyond their available resources.

Although social media provides valuable opportunities for financial education, entrepreneurship, and access to product information, the extent to which it contributes to responsible financial decision-making among students remains uncertain. Some students may use social media to compare prices, discover affordable alternatives, learn about financial management, and support small businesses. Others may experience negative financial outcomes due to excessive consumption, online shopping addiction, peer pressure, and exposure to aggressive marketing strategies. This contradiction highlights the need to examine the specific relationship between social media consumption and financial behaviour among students.

Existing studies have largely focused on the role of social media in marketing effectiveness, brand awareness, customer engagement, and purchase intention (Kaplan & Haenlein, 2010; Dwivedi et al., 2021). While these studies have contributed significantly to understanding digital consumer behaviour, they have paid relatively less attention to the broader financial implications of social media usage, particularly among students who often have limited financial independence. Consequently, there is insufficient empirical evidence regarding whether social media consumption significantly influences students’ spending habits and financial decision-making processes.

Within the Nigerian context, this research gap is particularly important because young Nigerians represent one of the fastest-growing groups of social media users. The widespread availability of affordable smartphones, increasing internet penetration, and expansion of digital commerce have made social media an integral part of youth culture. However, despite the popularity of social media among Nigerian students, limited studies have examined how online exposure affects their financial choices, particularly within polytechnic institutions.

Polytechnic students present a unique population for investigating this issue because they are often at a stage of developing financial independence. Many students are responsible for managing personal expenses related to transportation, accommodation, feeding, academic materials, clothing, social activities, and technological needs. Poor financial decisions influenced by social media trends may therefore have direct consequences on their ability to meet essential academic and personal obligations.

Yaba College of Technology (YABATECH) provides an important case for examining this relationship because of its location within Lagos State, Nigeria’s commercial and digital innovation hub. Students of YABATECH are exposed to diverse social media influences arising from Lagos’ vibrant business environment, online commerce activities, entertainment industry, and technology ecosystem. Despite this exposure, there is limited empirical evidence regarding whether social media consumption affects their spending behaviour and financial decision-making.

Another concern is that financial education programmes in many tertiary institutions often focus on general financial literacy, entrepreneurship, and career development, while giving limited attention to the influence of digital environments on students’ financial choices. As social media increasingly becomes a major source of consumer information and lifestyle influence, understanding its financial implications is necessary for developing effective financial awareness programmes targeted at young adults.

Failure to understand the relationship between social media consumption and student financial behaviour may have several negative consequences. Students who develop unhealthy spending habits due to online influence may experience financial difficulties, reduced savings, increased dependence on others, and inability to effectively manage academic expenses. Conversely, understanding how social media can be used positively may enable students to leverage digital platforms for financial learning, entrepreneurship, and informed decision-making.

Therefore, this study seeks to address the existing knowledge gap by investigating the influence of social media consumption on spending behaviour and financial decision-making among polytechnic students, using Yaba College of Technology (YABATECH) as a case study. The study will provide empirical evidence on whether social media engagement significantly affects students’ consumption patterns and financial choices.

1.3 Aim of the Study

The main aim of this study is to examine the influence of social media consumption on spending behaviour and financial decision-making among polytechnic students, with specific reference to Yaba College of Technology (YABATECH).

1.4 Objectives of the Study

The specific objectives of the study are to:

1. examine the level of social media consumption among students of Yaba College of Technology (YABATECH).
2. identify the major social media platforms commonly used by YABATECH students.
3. assess the spending behaviour of students of Yaba College of Technology.
4. determine the influence of social media consumption on students’ spending behaviour.

1.5 Research Questions

The study will be guided by the following research questions:

1. What is the level of social media consumption among students of Yaba College of Technology?
2. Which social media platforms are most commonly used by YABATECH students?
3. What are the spending behaviours of students of Yaba College of Technology?
4. To what extent does social media consumption influence students’ spending behaviour?

1.6 Research Hypothesis

The following null hypothesis will be tested at the 0.05 level of significance:

H₀: Social media consumption has no significant influence on spending behaviour and financial decision-making among students of Yaba College of Technology (YABATECH).

1.7 Significance of the Study

This study will be significant to students, tertiary institution administrators, financial educators, policymakers, parents and guardians, digital marketers, financial institutions, and researchers because it provides empirical evidence on how social media consumption influences spending behaviour and financial decision-making among polytechnic students.

The study will be beneficial to students of Yaba College of Technology (YABATECH) by increasing their awareness of the relationship between their social media habits and financial behaviours. The findings will help students understand how online advertisements, influencer marketing, peer pressure, and lifestyle content may shape their purchasing decisions. Such awareness may encourage more responsible consumption practices, improved budgeting habits, and better financial planning. Students may also learn to differentiate between genuine financial needs and socially influenced wants, thereby reducing unnecessary expenditure.

The findings will assist YABATECH management and student affairs departments in understanding the financial challenges associated with digital media exposure among students. The institution may use the findings to design programmes that promote financial responsibility, digital literacy, and responsible online consumption. Workshops, seminars, and counselling initiatives can be developed to help students understand the psychological and financial effects of social media-driven consumption.

The study will also benefit academic counsellors and financial education professionals by providing insights into the emerging relationship between digital environments and student financial behaviour. Counsellors may use the findings to provide guidance on managing online influences, developing healthy spending habits, avoiding impulsive purchases, and making informed financial decisions.

For parents and guardians, the study will provide a better understanding of the financial challenges faced by students in an increasingly digital society. The findings may encourage parents to discuss financial management with their children and provide appropriate guidance on responsible spending, savings, and the use of digital platforms.

The study will be useful to financial institutions, fintech companies, and digital payment service providers by providing information on how young consumers interact with digital platforms and make financial decisions. Such organizations may use the findings to develop student-oriented financial products, budgeting tools, savings applications, and financial education campaigns that encourage responsible money management.

The findings will also be valuable to business owners and digital marketers by improving their understanding of student consumer behaviour. While marketing strategies influence purchasing decisions, understanding the financial limitations of young consumers may encourage more ethical and responsible marketing practices, especially when targeting students.

The study will contribute to the academic literature on social media consumption, consumer behaviour, and financial decision-making. Existing studies have extensively examined social media marketing effectiveness and purchase intention, but fewer studies have explored how social media exposure influences the broader financial behaviour of students, particularly within Nigerian polytechnic institutions. This research will therefore expand knowledge by providing evidence from the Nigerian tertiary education context.

The study will also be useful to government agencies and policymakers responsible for youth development, consumer protection, and digital financial education. Findings from the study may support the development of policies and educational programmes aimed at improving financial literacy among young Nigerians and addressing emerging challenges associated with digital consumption.

Finally, the study will serve as a reference material for future researchers investigating related areas such as digital consumer behaviour, social media influence, financial literacy, online shopping behaviour, youth financial management, and behavioural finance.

1.8 Scope of the Study

This study focuses on the influence of social media consumption on spending behaviour and financial decision-making among polytechnic students, using Yaba College of Technology (YABATECH) as a case study.

The geographical scope of the study is limited to Yaba College of Technology, Lagos State, Nigeria. YABATECH was selected because it is one of Nigeria’s leading polytechnic institutions with a diverse student population and is located within Lagos, a major centre of digital innovation, commercial activities, and social media-driven entrepreneurship.

The population of the study comprises students of Yaba College of Technology across selected schools and departments. Polytechnic students are considered appropriate for this study because they represent a technologically active youth population that frequently engages with social media platforms and is increasingly involved in independent financial decision-making.

Conceptually, the study is limited to three major variables:

Independent Variable: Social Media Consumption

The dimensions of social media consumption examined include:

• frequency of social media use;
• duration of social media engagement;
• exposure to advertisements and influencer content;
• interaction with online brands and commercial content; and
• online shopping activities.

Dependent Variable 1: Spending Behaviour

This includes:

• impulse buying;
• purchasing frequency;
• consumption preferences;
• expenditure patterns;
• lifestyle-related spending; and
• budgeting practices.

Dependent Variable 2: Financial Decision-Making

This includes:

• saving decisions;
• spending priorities;
• financial planning;
• evaluation of purchasing choices; and
• money management practices.

The study adopts a quantitative survey research design, using structured questionnaires as the primary instrument for data collection. The findings will be based on responses obtained from sampled YABATECH students and may not be generalized to all polytechnic students in Nigeria.

1.9 Operational Definition of Terms

For the purpose of this study, the following terms are operationally defined:

Social Media Consumption

Social media consumption refers to the extent to which individuals use digital social networking platforms for communication, entertainment, information acquisition, product discovery, and interaction with online content.

Social Media Platforms

These refer to digital applications and websites that enable users to create, share, and interact with content. In this study, they include platforms such as Instagram, TikTok, Facebook, YouTube, WhatsApp, Snapchat, and X.

Spending Behaviour

Spending behaviour refers to the patterns and habits demonstrated by students when allocating their financial resources toward goods and services. It includes purchasing frequency, impulse buying, expenditure choices, and consumption priorities.

Financial Decision-Making

Financial decision-making refers to the process through which students evaluate and make choices regarding the use of money, including spending, saving, budgeting, and financial planning.

Impulse Buying

Impulse buying refers to spontaneous and unplanned purchasing decisions made without extensive consideration of financial consequences.

Influencer Marketing

Influencer marketing refers to promotional activities where individuals with significant online followings promote products, services, or lifestyles to influence consumer attitudes and purchasing decisions.

Online Shopping Behaviour

Online shopping behaviour refers to students’ tendency to purchase goods and services through internet-based platforms influenced by digital advertisements, social media promotions, and electronic commerce platforms.

Consumer Behaviour

Consumer behaviour refers to the processes individuals use when selecting, purchasing, using, and evaluating goods and services.

Financial Literacy

Financial literacy refers to the knowledge and understanding required to make effective financial decisions involving budgeting, saving, spending, borrowing, and investment.

Polytechnic Students

Polytechnic students refer to individuals enrolled in academic programmes at Yaba College of Technology who are pursuing National Diploma (ND) and Higher National Diploma (HND) qualifications.

Project – The Influence of Social Media Consumption on Spending Behaviour and Financial Decision-Making among Polytechnic Students