Impact of Social Media On Customer Buying
Impact of Social Media On Customer Buying
1051-19-405-201
Project Submitted in Partial Fulfilment of For the Award of The Degree of B. Com
Applications
By
DECLARATION
I hereby declare that this project titled “A Study on Impact of Social Media on
Consumers Buying Behavior” submitted by me to the Department of
Commerce, Osmania University, Hyderabad, is a bonafide work undertaken by
me and it is not submitted to any other university or institution for the award of
any degree, diploma/certificate or published any time before.
Kasanaboina Nikitha
CERTIFICATION
This is to certify that the Project Report titled “A Study on Impact of Social Media
on Consumers Buying Behavior ”submitted in partial fulfillment for the award of
B.Com Computer Applications Programmed of Department of Commerce, Osmania
University . Hyderabad, was carried out by kasanaboina Nikitha under my
guidance. This has not been submitted to any other University or Institution for the
award of and degree /diploma /certificate.
This project work would not have been complete without the mention of
following people. We express our hearty gratitude to our principal sir Dr.
Viswanadham Bulusu for providing us the opportunity and platform to work
on the project.
And our project mentor Mrs.Veena Malkhed who has supported and
guided us throughout our project.
A Study on Impact of social media on consumer buying behaviour
Abstract
Now-a-days people are preferring online shopping more than offline shopping. Social media
became a major role in advertising a product online by which consumer gets the knowledge
about the product. social networking services are increasingly being used in various businesses
throughout the world. There are many online networking sites are there which affect consumer
buying behaviour. In present days social media is being used by almost all ages of consumers.
Social websites like Instagram, Facebook, YouTube etc. A survey has taken to understand the
consumer buying behaviour through social media marketing. In today’s world social media
become a very strong useful tool using by the consumer in buying decisions. In 21st century,
it is very difficult for the consumer to spend time on purchasing a product because of their busy
schedule. So, they are acquiring the followers and subscriber in networking sites where they
can get opinion and reviews about different brands and products, so that consumers can change
their mind before purchasing the product through online. Here some of the most recognized
influences advertise products by specific brands and by this way they share their opinions with
their followers, for doing this for a specific brand they get paid partnership by the organisation.
This allows brands to make strategic moves that help reach their marketing goals through social
media.
INDEX
1. Introduction
1.1. Need of the study 1-4
1.2. objectives of the study
1.3. Research methodology
1.4. Limitations of the study
3. Industrial profile
3.1 Facebook 8-13
3.2 Instagram
3.3 Twitter
3.4 YouTube
3.5 Snapchat
6. Annexure 38-41
List of tables
INTRODUCTION
1
Introduction
The social media are increasingly influencing and changing the way the consumers behaviour,
and how they make the decision to buy. In this paper the term "social media" will be used to
refer to online communication channels, while the term "traditional mass media" will refer to
conventional communication media like TV, radio, newspapers, etc. Social media
advertisement is a type of digital advertisement which has become one of the most effective
means of advertising through internet in an online platform. This type of advertisement is
spread all over the globe. It is the fastest and newest way for advertising. Nowadays, internet
provides a direct link on various sites for advertising the products or services. The provision
for pay per click advertising is also available. Social media advertisements are displayed in a
unique manner so that the customers visit the advertisements and show some interest. With the
increasing availability and usage of the internet, companies have had to change their sales
strategies and focus on catering to the new online demand for products and services. Social
Media has been a growing trend for many years, and it has become a useful platform for
businesses to promote their products and services. Online marketing simplifies the targeting
process, and social networking sites are the perfect place to gather customers and gain
knowledge about their preferences. Therefore, marketing efforts are increasingly focused
online as the reach that can be achieved through them is significantly higher than that of
traditional marketing channels such as television or radio. As the usage of Social Media is
especially high amongst young people, companies often use these networks to target their
younger audience. For this reason, and for the purpose of this, some of youth friends were used
as the reference group to analyse the impact of Social Media on consumers through online
consumption patterns. To do so, a quantitative approach was used in the form of questionnaires
that were distributed amongst the friends and family. The results of the questionnaires have
been used to illustrate the effect that Social Media platforms and electronic word-of-mouth
recommendations have on their online consumer behaviour. The frequency of usage and the
presence on different Social Media platforms give an insight on the direct effects for each case.
2
1.1 Need of the study:
The aim of this study is to examine how social media will influence consumer behaviour of
general public and also analyse the factors affecting the general public to purchase through
social media platforms.
For the present study both primary and secondary data has been used. However, the paper is
mainly based on primary data, collected through a survey questionnaire conducted with
consumers.
Primary Data
Secondary Data
The secondary data were collected from books, journals, websites and other published sources.
Sample Area
Hyderabad Telangana
Sample Size
Major tool used in the analysis process has been bar graphs and pie chart for
3
Hypothesis for the study:
4
CHAPTER-2
REVIEW OF LITERATURE
5
Review of literature
In their article, targeted on investigating the factors that influence the shopping behaviour and
browsing behaviour of consumers during online purchase specifically, the study has been
conducted about the consumers using business-to-consumer sites. The researchers also
investigated buying preferences of consumers with varied demographic profiles which may
reveal different buying approaches and consumer behaviours for a specific class of
merchandise and services. Social media is the1 most effective factors that influence buying
behaviour of customers.
In their study found that Social Network Marketing is becoming the most successful model in
advertising.This study aims at how Social Network Marketing influences the shopper buying
behaviour among consumers who use social networking sites. The study also analyses the
relationships between customer engagement, social media selling activities and shopper
purchase behaviour. A survey was conducted among fifty students of Malaysian National
University. The results showed positive relationships between consumer engagement of social
media and their buying behaviours.
3. Achille (2008)24
This study indicates that due to reviews and recommendations posted in various social media
sites by the online buyers has increased the number of online buyers to forty percent in the past
two years. As an impact of social media, through online forty one percent of consumers
purchased books, thirty six percent consumers purchased clothes and shoes, twenty four
percent consumers purchased video games and DVDs, twenty four percent consumers
purchased airline tickets and twenty three percent consumers purchased equipment.
6
4. OTX analysis DEI Worldwide (2008)25
In their study, analysed the influence of social media on buying behaviour of customers and a
survey was conducted among US population, which shows that buyers presently use social
media as high information resource for brands, companies, or product. It additionally concludes
that social media outreach by brands and firms, particularly if a private on-line representative
will make this outreach, are often far more important on shopper behaviour than advertisements
or different promotional devices. In fact, two thirds of shoppers are doubtless to pass the
knowledge they receive to others and over half are doubtless to require action on this
information. There is a significant stronger impact on shopper behaviour when the social media
is used as a positive outreach to share information.
In their analysis, investigated the various social media parameters that greatly affected the
purchasing decision of consumers. The analysis gave importance to find the influence of social
media on the consumers buying decision. The authors outlined the objectives of the studies, so
as to realize the objectives, a suitable research model is predicted and research hypotheses were
tested on the model.
7
CHAPTER-3
INDUSTRY PROFILE
8
Industry profile
3.1 Facebook:
Facebook is an American online social media and social networking services owned by Meta
Platforms. Founded in 2004 by Mark Zuckerberg with fellow Harvard College students and
roommates Eduardo Saverin , Andrew McCollum, Dustin Moskovitz, and Chris Hughes, its
name comes from the face book directories often given to American university students.
Membership was initially limited to Harvard students, gradually expanding to other North
American universities and, since 2006, anyone over 13 years old. As of 2020, Facebook
claimed 2.8 billion monthly active users and ranked fourth in global internet usage. It was the
most downloaded mobile app of the 2010s. Facebook can be accessed from devices
with Internet connectivity, such as personal computers, tablets and smartphones. After
registering, users can create a profile revealing information about themselves. They can post
text, photos and multimedia which are shared with any other users who have agreed to be
their "friend" or, with different privacy settings, publicly. Users can also communicate
directly with each other with Facebook Messenger, join common-interest groups, and receive
notifications on the activities of their Facebook friends and the pages they follow.
The subject of numerous controversies, Facebook has often been criticized over issues such
as user privacy (as with the Cambridge Analytica data scandal), political manipulation (as with
the 2016 U.S. elections) and mass surveillance Posts originating from the Facebook page
of Breitbart News, a media organization previously affiliated with Cambridge Analytica, are
currently among the most widely shared political content on Facebook.
9
3.2 Instagram:
Instagram is an American photo and video sharing social networking service founded in 2010
by Kevin Systrom and Mike Krieger, and later acquired by Facebook Inc.. The app allows
users to upload media that can be edited with filters and organized
by hashtags and geographical tagging. Posts can be shared publicly or with preapproved
followers. Users can browse other users' content by tag and location, view trending
content, like photos, and follow other users to add their content to a personal feed Instagram
was originally distinguished by allowing content to be framed only in a square (1:1) aspect
ratio of 640 pixels to match the display width of the iPhone at the time. In 2015, this
restrictions was eased with an increase to 1080 pixels. It also added messaging features, the
ability to include multiple images or videos in a single post, and a Stories feature—similar to
its main competitor Snapchat—which allowed users to post their content to a sequential feed,
with each post accessible to others for 24 hours. As of January 2019, Stories is used by
500 million people daily.
Originally launched for iOS in October 2010, Instagram rapidly gained popularity, with one
million registered users in two months, 10 million in a year, and 1 billion by June 2018 In April
2012, Facebook Inc. acquired the service for approximately US$1 billion in cash and stock.
The Android version was released in April 2012, followed by a feature-
limited desktop interface in November 2012, a Fire OS app in June 2014, and an app
for Windows 10 in October 2016. As of October 2015, over 40 billion photos had been
uploaded. Although often admired for its success and influence, Instagram has also been
criticized for negatively affecting teens' mental health, its policy and interface changes, its
alleged censorship, and illegal and inappropriate content uploaded .
10
3.3 Twitter:
Twitter is an American microblogging and social networking service on which users post and
interact with messages known as "tweets". Registered users can post, like, and retweet tweets,
however, unregistered users have the ability to only read tweets that are publicly available.
Users interact with Twitter through browser or mobile frontend software, or programmatically
via its APIs. Prior to April 2020, services were accessible via SMS. The service is provided
by Twitter, Inc., a corporation based in San Francisco, California, and has more than 25 offices
around the world Tweets were originally restricted to 140 characters, but the limit was doubled
to 280 for non-CJK languages in November 2017 Audio and video tweets remain limited to
140 seconds for most accounts.
Twitter was created by Jack Dorsey, Noah Glass, Biz Stone, and Evan Williams in March 2006
and launched in July of that year. By 2012, more than 100 million users posted 340 million
tweets a day and the service handled an average of 1.6 billion search queries per day. In 2013,
it was one of the ten most-visited websites and has been described as "the SMS of the Internet”.
By the start of 2019, Twitter had more than 330 million monthly active users in practice, the
vast majority of tweets are written by a minority of users. On April 25, 2022, the Twitter board
of directors agreed to a $44 billion buyout by Elon Musk, the CEO of SpaceX and Tesla,
potentially making it one of the biggest deals to turn a company private.
11
3.4 You Tube:
YouTube is an American online video sharing and social media platform headquartered in San
Bruno, California. It was launched on February 14, 2005, by Steve Chen, Chad Hurley,
and Jawed Karim. Owned by Google, it is the second most visited website, right after Google
itself. YouTube has more than one billion monthly users who collectively watch more than one
billion hours of videos each day. As of May 2019, videos were being uploaded at a rate of more
than 500 hours of content per minute.
In October 2006, 18 months after posting its first video and 10 months after its official launch,
YouTube was bought by Google for $1.65 billion Google's ownership of YouTube expanded
the site's business model, expanding from generating revenue from advertisements alone, to
offering paid content such as movies and exclusive content produced by YouTube. It also
offers YouTube Premium, a paid subscription option for watching content without ads.
YouTube and approved creators participate in Google's AdSense program, which seeks to
generate more revenue for both parties. YouTube's reported revenue for 2020 was $19.8 billion
Since its purchase by Google, YouTube has expanded beyond the core website into mobile
apps, network television, and the ability to link with other platforms. Video categories on
YouTube include music videos, video clips, news, short films, feature films, documentaries,
audio recordings, movie trailers, teasers, live streams, vlogs, and more. Most content
is generated by individuals, including collaborations between YouTubers and corporate
sponsors. Established media corporations such as Disney, Paramount, and Warner Bros.
YouTube has had an unprecedented social impact, influencing popular culture, internet trends,
and creating multimillionaire celebrities.
12
3.5 Snapchat :
Snapchat is an American multimedia instant messaging app and service developed by Snap
Inc., originally Snapchat Inc. One of the principal features of Snapchat is that pictures and
messages are usually only available for a short time before they become inaccessible to their
recipients. The app has evolved from originally focusing on person-to-person photo sharing to
presently featuring users' "Stories" of 24 hours of chronological content, along with
"Discover", letting brands show ad-supported short-form content. It also allows users to keep
photos in the "my eyes only" which lets them keep their photos in a password-protected space.
It has also reportedly incorporated limited use of end-to-end encryption, with plans to broaden
its use in the future.
Snapchat was created by Evan Spiegel, Bobby Murphy, and Reggie Brown former students
at Stanford University. It has become known for representing a new, mobile-first direction
for social media, and places significant emphasis on users interacting with virtual stickers
and augmented reality objects. As of July 2021, Snapchat had 293 million daily active users, a
23% growth over a year On average more than four billion Snaps are sent each day Snapchat
is popular among the younger generations, particularly those below the age of 16, leading to
many privacy concerns for parents.
13
CHAPTER-4
INTERPRETATION
14
Data analysis
1.Gender
Table – 4.1
Figure:4.1
Iinterpretation:
Frome the Above pie chart we can see that the most of the respondents are female than males.
Female respondents are 60% and male respondents are 40%.
15
2.Age
Table – 4.2
21-25 14 35%
26-30 1 2.5%
31-35 3 7.5%
36-40 1 2.5%
Figure:4.2
Interpretation:
The above pie chart shows age group respondents, it is observed that 15 to 20 and 21 to 25 age
group people have responded the most with 52.5% and 45% 26 to 30 and 31 to 35 and 36 to 40
have responded less with the percentage 2.5% 7.5% 2.5%
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3.occupation
Table – 4.3
Given choices No of respondents Percentage
Student 33 82.5%
Employee 4 10%
Business 3 7.5%
Others 0 0%
Figure:4.3
Interpretation :
From the above pie chart we can observe that 82.5% of the respondents are students with the
highest response and employee ,business are with 10% and 7.5%
17
4. Most often doing online shopping by the respondents.
Table – 4.4
Weekly 8 20%
Monthly 13 32.5%
Figure:4.4
Interpretation:
From the above pie chart we can see that most of the respondents do online shopping 1-5 times
in a year with 45% and some of the respondents do online shopping monthly with 32.5% these
are the highest among respondent .some of the people do online shopping weekly with just
20% and only 2.5% do everyday online shopping.
18
5. Apps/websites used most often when Buying products online.
Figure:4.5
Interpretation :
In the above graph we can see that Amazon and Flipkart are the highest online shopping website
mostly used by the respondents to shop with 67.5% and 60%. Myntra and mesh were used by
35% and 30% respectively Nykaa issued by 17.5% and remaining 20% are the other preference
of respondents.
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6. Users of Social media.
Table – 4.6
Yes 40 100%
No 0 0%
Figure:4.6
Interpretation :
In the above pie chart we can see that all of the respondents use social media it is 100% there
is no one who doesn't use social media from the respondents
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7. Social media websites that are used.
Given choices No of respondents Percentage
Table – 4.7
Facebook 18 45%
Instagram 36 90%
Twitter 5 12.5%
Snapchat 28 70%
You Tube 27 67.5%
Other 6 15%
Figure:4.7
Interpretation:
From the above graph it is observed that 90% of the respondent use Instagram followed by
Snapchat with 70% and YouTube with 67.5% these three website where almost used by
majority of the respondents .Facebook and Twitter are the least used by the respondents with
45% and 12.5% and the rest of the respondents prefer other with 15%.
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8. Time spend on using social media(per day).
Table - 4.8
Figure:4.8
Interpretation :
From the above pie chart we can see that 37.5% of the respondents spend 1-2 hours using social
media and 4-6 hours with 27.5% and 2- 4 hours with 25% and we can see that 10% of the
respondents spend less than 1 hour on social media.
22
9. Attention pay to advertisement on social media websites.
Table – 4.9
Given choices No of respondents Percentage
Yes 23 57.5%
No 17 42.5%
Figure:4.9
Interpretation :
From the above pie chart we can see that 57.5% of the respondents pay attention to
advertisement on social media website and 42.5% does not pay attention to the advertisement
on a social media website.
23
10. Often get to see an advertisement on social media.
Table:4.10
Figure 4.10
Interpretation :
From the above pie chat we can observe that 42.5% of the respondents get to see an
advertisement sometimes on social media and 32.5% of the respondents get to see an
advertisement always on social media .10% of the respondents see often and 12.5% sees rarely
and we can see that just 2.5% of the respondents could not see the advertisement on social
media.
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11. Preference to do online shopping through social media platforms.
Table – 4.11
Yes 16 40%
No 13 27.5%
Maybe 11 32.5%
Figure:4.11
Interpretation:
From the above pie chart we can observe that 40% of the respondents prefer to do online
shopping through social media platforms and 32.5% may think of to do online shopping on
social media platform and 27.5% of the respondents don't want to do online shopping through
social media platform.
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12. Buying a product after seeing it on social media.
Table – 4.12
Given choices Number of Percentage
respondents
Very often 6 15%
Often 6 15%
Sometimes 10 25%
Rarely 13 32.5%
Never 5 12.5%
Figure:4.12
Interpretation:
From the above pie chart we can see that 32.5% of the respondents buy a product after seeing
it on social media that is very rarely and 15% of the respondents buy products often and also
very often, 25% of the respondent buy sometimes and 12.5% never buys.
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13. Purchase is influenced by social media.
Table – 4.13
Figure:4.13
Interpretation :
From the about pie chart we can see that 42.5% of the respondents neither agree nor disagree
that there purchase is influenced by social media and 17.5% and 25% of the respondents
strongly agree and agree that there purchase is influenced by social media and 15% of the
respondents disagree.
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14. Affecting the most on purchasing decision.
Table – 4.14
Figure:4.14
Interpretation :
From the above graph we can observe that 50% of the respondents has effect of quality of the
product on their purchasing decisions and 45% of the responders has affect of friends and
families recommendations these two are the highest among all. social media influencers
recommendation and brand own social media advertising have 35% and 25% of response that
effects the most on their purchasing decision.
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15. Before purchasing searching for more information of the product.
Table – 4.15
Given choices Number of respondents Percentage
In traditional media (TV 4 10%
,radio, newspaper)
In internet( social media 36 90%
,other reviews)
Figure:4.15
Interpretation :
From the above pie chart we can observe that 90% of the respondent use internet to search
information about the product before purchasing any of the them and 10% of the respondent
use traditional media like TV, radio, newspaper to search information about the product.
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16. Social Media enhances knowledge and opinion about buying online products services.
Table - 4.16
Figure:4.16
Interpretation :
From the above pie chart we can observe that 45% of the respondent agree that there knowledge
and opinion has been enhanced by social media and 22.5% of them strongly agree and also
22.5% of the responders neither agree nor disagree that there knowledge is being enhanced by
social media or not. 7.5% of the responders disagree.
30
17. product or service get viral on digital media getting attracted towards that goods or
services.
Table - 4.17
Given choices Number of respondents Percentage
Yes 14 35%
No 7 17.5%
Maybe 19 47.5%
Figure:4.17
Interpretation :
From the above pie chart we can observe that 47.5% of the responders may think of to get
attract, if the product gets viral on digital media and 35% of the respondents already says that
they will get attracted if the product is getting viral in digital media and 17.5% say no.
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18. Social media place a important role in promoting a brand.
Table - 4.18
Given choices Number of respondent Percentage
Strongly agree 12 30%
Agree 21 52.5%
Neither agree not disagree 5 12.5%
Disagree 2 5%
Strongly disagree 0 0%
Figure:4.18
Interpretation:
From the above we can observe that 52.5% of the respondents agree that social media place an
important role in promoting a brand and 30% responders strongly agree it. 12.5% of the
responders neither agree not disagree that social media may play an important role in promoting
a brand or not and 5% of them disagree.
32
19. Social media influencers and celebrities endorsements place a big part in influencing
online purchasing decisions.
Table - 4.19
Figure:4.19
Interpretation:
From the above pie chart we can say that 50% of the responders accepts that celebrity
endorsement and influences on social media have a big influence in there online purchasing
decision and 17.5% strongly agrees it and 22.5% neither agree nor disagree it .10% disagree.
33
20. Social media platform has higher influence on online purchasing behaviour.
Figure:4.20
Interpretation :
From the above graph we can observe that Instagram has higher influence on their online
purchasing behaviour that is 90% and the rest all are least like Facebook is 32.5% you tube is
47.5% Snapchat is 22.5% Twitter is 12.5% and 15% are the other.
34
CHAPTER-5
35
Findings and conclusion
Findings
• It was found that all the respondents use social media on a daily basis.
• Instagram, YouTube and snap chat were the most frequently used social media websites
by the respondents.
• It was found that at least 45% of the respondents do online shopping at least 1-5times
in a year.
• It was found that while using social media 57.5% of the respondents came across
advertisement.
• The respondents are highly information seekers. They collect more information about
the products quality before purchasing a product.
• From all the total respondents , 45% of them have agreed that social media had
something impact on their online shopping.
Conclusion
From the above report it can be concluded that social media presence is unavoidable in coming
years. Not only is social media useful as marketing tool, it has become the order of the day to
be present in social media. The amount of information available to us increases each and every
day; as a result, we are overwhelmingly exposed and attained to different aspects of information
via the Social Media available to us on the Internet. In today’s Digital Age simply starting a
Facebook page and posting pictures of the product is not enough to attract customers,
companies need to make conscious efforts to stay up to date with the latest trends and come up
with innovative and engaging content for their social media. No matter what age or what gender
the user is, they somehow use social media in one way or another while purchasing products.
Either to read reviews, or to know about available discounts, promotions or to know more about
the brand in general.
36
Webliography
• www.instagram.com
• www.snapchat.com
• www.youtube.com
• www.quora.com
• www.investopedia.com
37
ANNEXURE:
Questionnaire
Name
Your name
Gender
• Male
• Female
• Prefer not to say
Age
• 15-20
• 21-25
• 26-30
• 31-35
• 36-40
Occupation
• Student
• Employee
• Business
• Other
Which all apps/websites do you use most often when buying a product online?(Choose
as many as you use)
• Amazon
• Flipkart
• Myntra
• Meesho
• Nykaa
• Others
38
Do you use social media?
• Yes
• No
What all are the social media websites that you use?(choose as many as you use)
• Facebook
• Instagram
• Twitter
• Snapchat
• You tube
• Other
39
• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
Which all effects the most on your purchasing decisions?(choose as many as you want
to)
• Friends/family recommendations
• Social media influencers recommendations
• Brands own social media advertising
• Quality of the product
• None of these
Before purchasing where do you search for more information of the product?
• In traditional media (Tv, Radio ,newspaper)
• In internet(social media, other reviews)
Do you think social media enhances your knowledge and opinion about buying online
products and services?
• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
If a product or services gets viral on digital media ,will you get attracted towards that
goods or services?
• Yes
• No
• Maybe
Would you say that social media influencers and celebrities endorsement play a big
part of influencing your online purchasing decisions?
40
• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
What all social media platforms do you think has a higher influence on your online
purchasing behaviour?(choose as many as you want to)
• Facebook
• Instagram
• Twitter
• Snapchat
• You tube
• Other
41