Social Media As A Marketing Tool A Lit Essay Example
Social Media As A Marketing Tool A Lit Essay Example

Social Media As A Marketing Tool A Lit Essay Example

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  • Pages: 14 (3785 words)
  • Published: March 25, 2018
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This article is available for free on the DigitalCommons@URL's Textiles, Fashion Merchandising, and Design section. It has been approved by DigitalCommons@URI's administrator to be included in Major Papers by Master of Science Students. For more information, please contact [email protected].
Deadline: Major Paper Literature Review Social Media as a Marketing Tool: A Literature Review Introduction In today's technology-driven society, social networking platforms have given retailers an opportunity to broaden their marketing strategies and reach a wider consumer audience.

Chi (2011, 46) defines social media marketing as the interaction between brands and consumers, offering a personalized platform for user-centered networking and social interaction. The emergence of social media has had a profound impact on communication methods used to engage with customers, necessitating the integration of social media into business plans (Mango and Faults 209

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9). This is especially crucial in literature that explores how retailers can leverage social media as an expansion of their marketing strategy.

In the last ten years, there has been extensive research done on social media because of its growing popularity. The research mainly focuses on two main areas: (1) understanding the definition and concepts of social media marketing, and (2) studying how a company's use of social media affects consumer behavior. This paper starts by explaining the terms used in social media marketing and then explores four important research topics: Virtual Brand Communities, Consumer Attitudes and Motives, User Generated Content, and Viral Advertising.

Despite the extensive research on social media marketing, the benefits that retailers gain from this tactic have not been precisely described. The existing literature focuses on defining social media marketing and exploring its impact on consumer behavior. However, research in

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this field has been limited so far.

The research should focus on expanding and gaining a deeper understanding of the long-term promotional benefits that retailers gain from social media marketing. Moreover, there is a requirement for more formalized studies that go beyond theoretical or predicted outcomes and learn from real-life applications. This literature review recognizes the gaps in social media marketing research and emphasizes the significance of future studies investigating the advantages of marketing on social networking sites, especially for small retailers.

Social media, a marketing tool, requires understanding various aspects. To comprehend social media, it is crucial to define Web 2.0 which signifies how end users utilize the World Wide Web. Web 2.0 facilitates collaborative and sharing content modification. This shift surpasses technology and focuses on how people use technology to create and consume information thus enhancing websites that support this behavior. Furthermore, Web 2.0 has progressed from simple information retrieval to interactivity, interoperability, and collaboration.

According to Kaplan and Heinlein (2010), social media can be described as Internet-based applications that are built upon the foundations of Web 2.0 allowing for the creation and exchange of user-generated content. Sinclair and Bogus characterize social media as software tools for generating shareable content.

For a website to be considered a social network, it must possess specific key features such as user profiles, capabilities for content sharing, connecting with other users, leaving comments on others' pages, and options for joining virtual groups based on shared interests (Gross & Campbell et al., 2011). The terms "social networking sites" and "social media" are commonly used interchangeably (Acquits, 2005; Ellison et al., 2007; Alienate & Madden et al., 2007; Winder et al., 2007;

Boyd & Ellison et al., 2007 as cited in Cox, 2010).

Social media is unique in that it brings people together by allowing them to create personal information profiles and invite others to view those profiles (Kaplan and Heinlein 2010, 63). This has changed the way consumers gather information and make purchasing decisions. Researchers consider Consumers' Sentiment toward Marketing (SCM) as a factor for assessing how consumers perceive social media marketing.

According to Lawson et al. (2001 as cited by Made 2011), Supply Chain Management (SCM) refers to the general feelings that consumers have for marketing and the marketplace. The overall perception of the marketplace plays a crucial role in determining an individual's willingness to engage in consumption activities. To effectively carry out a marketing campaign using social media, consumers need to be receptive towards the technology. Paranormal (2000 as cited by Made 2011, 195) defines consumer technology readiness as the inclination of individuals to embrace and utilize new technologies for achieving goals in both their personal and professional lives.

Consumer technology readiness is a crucial consideration for retailers when promoting on social networks. If their target market does not use or have a positive perception of social media, their social media marketing efforts will not yield desired results. Assessing technology readiness helps retailers determine if interactive advertising would be suitable for their target market. The Innovation Adoption Process (PAP) is a tool that offers insights into consumers' acceptance of new technology.

The PAP, as mentioned by Rogers in Made's study in 2011, refers to the progression an individual goes through in the innovation-decision process. This process includes five steps: gaining knowledge about the innovation,

developing an attitude towards it, making a decision to adopt or reject it, implementing the innovation, and confirming the decision. Marketers can benefit from understanding the PAP when creating successful social media marketing campaigns. Social media has evolved from its original purpose of facilitating communication between individuals and their loved ones.

The rise of search engines, advanced mobile devices, interfaces, and peer-to-peer interactions has opened up new avenues for businesses to engage with customers. As a result, the concept of shopper marketing has emerged, promoting interaction between companies and consumers (Shank et al., 2011, 30).

According to Shank et al. (2011, 29), shopper marketing encompasses all marketing efforts that influence a shopper's buying journey, starting from the initial motivation to shop until the final stages of consumption and recommendation. Retailers must also take into account the concept of perceived fit, defined as the level of similarity between an extension product category and the brand's current products (Delicious and Smith as cited in Chaw 2009).

Chaw (2009) states that if shopping services on social networking sites are seen as helpful and user-friendly, more individuals will be inclined to shop for products on these platforms. By offering shopping services on social networks, retailers can witness business expansion since there is a wide variety of consumers utilizing these sites. Consequently, retailers have the chance to reach numerous target markets, making social networks an effective platform for promoting their brand and products to potential customers.

Shank et al. (2011) state that shopper marketing and social media are integral in a retailer's marketing plan. They highlight that shopper marketing can collaborate with shoppers to enhance products, establish effective messaging, recognize

advocates, and facilitate in-store activities. Additionally, the authors emphasize the significance of social media in fostering consumer communities, which enable companies and customers to engage and exchange information about brand products in innovative ways.

Virtual brand communities are computer-generated spaces that allow consumers and retailers to connect through marketing. These communities, also known as Virtual Brand Communities (BBC), are formed online by consumers who share a common interest in a particular brand or product. This concept is being studied as a marketing tool, with scholars describing BBCs as aggregations of consumers on the internet (Muezzin and Gauguin as cited in George and Mink 2012, 3). A brand community is essentially a group of people who have a shared interest in a specific brand or product (Casualö, VivaÃn and Signaling 2008).

In general, Vic's are important for the creation and consumption of brand meaning (Muezzin and Jensen Schwa, 2007). Casualö, VivaÃn and Signaling (2008) discovered that when a member trusts the BBC they are part of, it leads to increased participation, and consumers who have a positive participation experience are more loyal to the brand. Trust plays a significant role in shaping a consumer's opinions about social networking sites and can ultimately influence the level of trust.

Since Bcc depend on individual users' participation, both group unity and awareness can enhance users' satisfaction with a BBC (Casualö, VivaÃn and Signaling 2008). According to a study by Casualö, VivaÃn and Signaling (2008), BBC and online interactions among consumers have significant influence on their purchasing behavior. Additionally, research has identified new forms of social interactions within Bcc, including Electronic Consumer to Consumer Interaction (cycle), which involves interactions between

consumers of e-services (George and Mink 2012).

The Consumer experience is enhanced by the opportunity to interact with others, and social networking sites facilitate such interactions among consumers and retailers (George and Mink 2012). The influence of consumers on each other's consumption decisions has become more significant through cycle. George and Mink (2012) identified 6 quality factors that contribute to the success of electronic consumer-to-consumer interaction (cycle), and they found that seven specific factors play a crucial role in this success.

The various aspects that consumers consider in their interactions with products and services include content, security, hedonistic meaning (i.e., emotional aspects), quality, atmosphere, convenience, and social factors. An instance of a cycle in e-service interaction occurs when a consumer asks a question about the fit or color of a product online and another consumer responds. If the question is answered promptly, accurately, and in a friendly manner, this cycle event would likely be considered of high quality.

The text explains how consumer interaction is a cyclical occurrence influenced by social and convenience factors. Mango and Faults (2009) state that when consumers have the opportunity to provide feedback, they feel more connected to products and companies. Hence, retailers must pay attention to their social media presence quality as it greatly impacts consumer shopping behavior.

When it comes to their social media presence, companies need to consider various factors, such as a consumer's social identity online. A study by BBC explored how social identity and group norms affect purchasing behavior in online groups. The characteristics and environment of these social media groups play a role in how members perceive brands and products. Group norms encompass the

shared objectives, beliefs, and values that influence the behavior of group members (Muezzin and Jensen Schwa, 2007).

Social identity, as explained by Zen, Hung, and Duo (2009), refers to the values and beliefs that influence group-related behavior. In online communities, community members belonging to a strong social group are more likely to have intentions of accepting advertising. For instance, if a Facebook group focuses on luxury brands, members may find ads related to high-end products more relevant. However, other members may interpret the ads differently based on their own experiences, attaching meaning to the brand represented (Muezzin and Gauguin as cited in Muezzin and Jensen Schwa, 2007).

Additionally, members of the BBC place importance on ads that are relevant to their community's theme. According to Muezzin and Jensen Schwa (2007), advertising and branding can undermine the intended message of an ad in order to align with the values of the brand community. This means that a BBC has the ability to modify or manipulate the true essence of an ad through its presentation or utilization for branding purposes. Frequently, Vic's alters the meaning of an ad through its display on the community forum.

The true meaning of an ad can be lost when a BBC modifies it to fit its community's theme. How people interpret ads on social media is influenced by their individual identity and the customs of the social community they belong to. The customs of the community may also be influenced by users' cultural backgrounds. In a study by Postulating and Kessler (2011), the impact of culture on social media was examined using the Technology Acceptance Modems (TAMA).

TAMA, which stands for

Technology Acceptance Model, focuses on the significance and steps related to perceived usefulness and perceived ease of technology. TAMA posits that the factors determining perceived usefulness will not impact perceived ease of use, and the factors affecting perceived ease of use will not impact perceived usefulness (Postulating and Kessler 2011). The researchers utilized TAMA to investigate whether an individual's cultural background influences perceived ease and perceived usefulness. This was done to understand users' behavioral intention towards social media.

In their research, the scholars utilized TAMA to examine if a person's cultural background has an impact on their interpretation of a message, event, or idea conveyed through a social networking platform. They constructed a research model employing TAMA to investigate this phenomenon. Postulating and Kessler (2011) contend, based on their research model, that culture does indeed shape how individuals behave and perceive events on technology-driven platforms like social media.

The interpretation of social media and its content is influenced by an individual's cultural or ethnic background. The emergence of social networking has brought about a new culture shaped not only by personal values and ideologies, but also by rituals and communication tools in the online space of Web 2.0" (Postulating and Kessler 2011, 352). When using social media, retailers must recognize the significance of culture as social networks bring together various cultures and give rise to new online cultures (Postulating and Kessler 2011).

Understanding the impact of cultural backgrounds and traditions on consumer attitudes towards brands is essential for retailers and marketers. In the past, companies had complete control over these attitudes, but recent studies have highlighted the role of social media in shaping consumer perceptions

and motivations.

In a study conducted by Chug (2011), the relationship between participation in Faceable brand-related groups, advertising responses, and psychological factors such as self-disclosure and attitudes was examined. It was found that members of Faceable groups are more inclined to share their personal information compared to nonmembers. This is attributed to the fact that users openly reveal their connections with Faceable groups and promote brands or products by passing on ads to their friends. Additionally, Faceable groups serve as useful channels for consumers seeking self-status in a specific product category, as they share viral content about brands with their social contacts (Chug 2011, 40). Furthermore, Chug (2011) discovered that Faceable group members have a more positive attitude towards social media and advertising. Those with favorable attitudes are more likely to join brand or retailer Faceable groups in order to receive promotional messages. Consequently, Chug (2011) suggests that a correlation exists between consumers' usage and engagement with group applications on social media platforms.

The rate and effectiveness of advertising on social media, especially on Facebook, is influenced by the way consumers use and engage with group applications. According to Chug (2011), Passbooks college-aged users have a positive attitude towards social media advertising and are the fastest-growing demographic. This indicates that social media sites, particularly Facebook, have great potential for online advertising campaigns, especially for companies targeting younger audiences.

In her study, Cox (2010) examined the relationship between age and attitude. She discovered that social network users' attitudes towards online advertising formats, such as blobs, video, and brand channel or page, varied among different age groups. Cox explains that individuals aged 18-28 exhibited particularly positive attitudes

towards these ad formats. This was primarily due to the fact that users perceived them as visually appealing, informative, and entertaining.

According to Cox (2010), individuals between the ages of 35-54 favored video and brand channel ad formats. They believed these formats were more attention-grabbing, informative, and better placed within the layout of online pages. Users generally welcome online advertising formats that have positive qualities. However, ads that disrupt online social networking activities, such as pop-up, expandable, or floating formatted ads, were disliked by network users.

According to Chi (2011), user responses to social media marketing vary depending on the social network. This implies that users perceive advertising differently on different platforms. As explained earlier, Postulating and Sleeker's (2011) study also utilized the technology acceptance model (TAM). Harris and Dennis (2011), on the other hand, adopted a more flexible approach by combining trust and the factors related to TAM, such as perceived enjoyment, ease of use, and usefulness.

The TAM found that when using social media like Faceable, consumers, particularly students, have a hierarchy of trust. They trust their 'real' friends the most, followed by Faceable friends, expert Blogs and independent review sites, and lastly celebrities and e-retailer sites (Harris and Dennis 2011). Pitter and Pantaloon (2012) conducted additional research using the TAM, which revealed that enjoyment plays a major role in influencing consumers to use social networks as a platform for aiding their purchasing decisions.

The research conducted by Did Pitter and Pantaloon in 2012 revealed that the enjoyable and interactive nature of Faceable encourages individuals to pay closer attention to the products being promoted. Faceable allows users to easily ask for suggestions, resulting

in a consumer to consumer approach where experiences are shared and a common knowledge is created. Additionally, Faceable serves as a direct channel for businesses to communicate with clients in a business to consumer approach. (Did Pitter and Pantaloon 2012, 20)

According to Pitter and Pantaloon (2012), retailers can enhance the appeal of their Facebook page by incorporating games, contests, and interactive applications, which can attract a larger user base. However, it is equally important for retailers to be knowledgeable about consumer attitudes towards social media marketing. To ensure the effectiveness of marketing strategies, a deeper understanding of how consumers perceive social marketing is necessary. Heinous (2011) found that consumer activities of consumption, participation, and production are influenced by multiple motivations, rather than just one.

The perception of individuals as consumers has changed, as they are now seen as active producers of business value. This shift is a result of the diminishing effectiveness of traditional marketing tactics, which can be attributed to user-generated content (Heinous 2011). It is important to understand why consumers generate content about a brand or store, as this provides valuable insights into their motivations. According to Gonzalez (2010), it is the individuals themselves and not the technology that have the ability to influence others on social media platforms.

The importance of user generated content in shaping a brand is recognized by marketers. User generated content encompasses various forms of media content that is created by ordinary users and publicly available through social media (Kaplan and Heinlein, 2010, 61). When individuals share a brand or information about it, they generate social currency (Cannibalize and Honed, 2011), which greatly influences brand reference and

is closely connected to the concept of social capital proposed by Boride (1977) and Colleen (1988).

Social capital is shaped on an individual level and exists within interpersonal relationships (Cannibalize and Honed, 2011). In addition, the extent of an individual's social capital relies on the size of their network of connections that they can effectively utilize (Broodier as cited in Cannibalize and Honed, 2011). These connections have the potential to contribute to the integration of brands into customers' social interactions through social networking. Expanding on [Boride's] theory in the context of today's exponentially growing online social interactions, social currency can be understood as the entirety of actual and potential resources a brand obtains from its presence in social networks and communities" (Cannibalize and Honed, 2011, p. 51). Social currency consists of six components: affiliation, conversation, utility, advocacy, information, and indemnity (Cannibalize and Honed, 2011). Social currencies emerge from interactions among consumers and are typically independent of a firm's direct control (Cannibalize and Honed, 2011).

According to Cannibalize and Honed (2011), their empirical study shows that brands do not depend on all six components of social currency to foster brand loyalty among users. However, the key to a brand's success is its integration into people's daily lives. This integration allows consumers to connect, interact, and benefit from other users of the brand, resulting in a higher chance of consumer-generated advertising for the brand (Cannibalize and Honed 2011).

Consumer Generated Advertising (GA) can be categorized as user-generated content. This refers to situations where consumers create brand-focused messages with the goal of informing, persuading, or reminding others. According to Muezzin and Jensen Schwa (2007) and Pelican, Corsican,

and Berthed (2011), GA can also be referred to as vigilante marketing. Vigilante marketing is when brand loyalists undertake unpaid advertising and marketing efforts on behalf of the brand. These efforts include one-to-one, one-to-many, and many-to-many commercially oriented communications.

According to Campbell et al. (2011), traditional marketing and GA now exist together. It is crucial for retailers to know this as GA can either enhance or harm traditional marketing efforts. Chosen and Morrison (2010) further support this notion by pointing out the importance of studying ICC to fully grasp the impact of user generated content (UGH), whether positive or negative, on credibility in marketing.

According to Heinous (2011), consumers are involved in various activities such as consuming content, participating in discussions, and sharing knowledge with other consumers. They also contribute to the activities of other consumers.

In a study conducted by Pelican, Corsican, and Berthed (2011) on the well-known Apple Corporation, GA (Grounded Advertising) was compared with VGA (Firm Generated Advertising). The researchers discovered that GA and VGA have different effects on consumer response. While both types of ads are appreciated by consumers, GA is found to be more entertaining and generates more discussion among consumers.

The study conducted by Chosen and Morrison in 2008 was similar to previous research. It aimed to explore the distinction between ICC (consumer-generated content) and PIG (producer-generated content), which refers to content created by marketers. The researchers interviewed college students to gather their insights. The study's findings indicated that consumers have more trust in product information created by fellow consumers compared to information generated by manufacturers. Consumers rely on the opinions of other consumers to lower their purchase risks and

obtain pre-purchase information. Consequently, consumer-generated information is viewed as more important than advertising. As a result, individuals who post ICC become opinion leaders according to Chosen and Morrison's study in 2008.

The study conducted by Taylor, Stratton, and Thompson (2012) examined consumer trust in GA compared to company-produced ads. The results supported previous research showing that consumers have more trust in GA and are likely to share highly entertaining ads. However, Taylor et al. (2012) also discovered another factor influencing social media users' sharing behaviors: the desire for self-enhancement. If individuals see an online ad that aligns with their identity, they are more likely to share it because it reflects their preferences and personal characteristics.

According to Taylor, Stratton, and Thompson (2012, 13), advertisers should consider the symbolic and self-expression properties of their online ads and match them to targeted consumers' self-concepts. In simpler terms, companies need to market products that align with their target audience's interests. The studies mentioned emphasize the importance of GA and its influence on online marketing. Muezzin and Jensen Schwa (2007) highlight the rapid creation and dissemination of GA through email, often without clear attribution or confirmation of its official corporate origin.

Therefore, brand managers are now faced with the challenge of determining how to respond when consumers discuss their brand (Campbell et al. 2011). According to Muezzin and Jensen Schwa (2007), GA is significant for businesses as it serves as evidence of consumer opinions and sentiments towards the brand. Additionally, they assert that GA is valuable due to its persuasive impact as conveyed by loyal brand advocates. Furthermore, it is anticipated that GA will continue to grow in prevalence.

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