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Social media impact on business performance
The impact of social media on business performance
Social media impact on business performance
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1. Social media marketing and brand attachment and/or engagement
Chi (2011) defines social media marketing as a “connection between brands and consumers, [while] offering a personal channel and currency for user centered networking and social interaction.” The tools and approaches for communicating with customers have changed greatly with the emergence of social media; therefore, businesses must learn how to use social media in a way that is consistent with their business plan (Mangold and Faulds 2009) the win-win of consumer brand relationship is that consumer derive satisfaction through greater attachment to brands and hat firms that better understand and respond to customer needs to generate mor brand loyalty and profitability. To achieve
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commercial activities are increasingly becoming the part of social media (Liang and Turban, 2011). Apart from branded fan pages and wee established brands’ advertising, these commercial activities are conducted by utilizing the group option on Facebook. Such type of social commerce known as C2C social commerce, which involves one group member as seller and other member as customer (Liang and Turban, 2011). These groups are commonly known as “buy and sell” groups which have may sellers and many buyers (Chen, Su,& Widjaja, 2016).
Hanjli (2014) sated that c2c social commerce gaining rapid growth on social media such as Facebook, Qzone and MySpace etc. the seller (social media user) market or sell any self made items such as hand crafts, homemade food items, second hand items and also act as merchandiser. He also stated that these type of groups are increasing rapidly on social media but researchers are giving very less attention to it.
C2c social commerce has open the new avenue for individual sellers and buy where they can make direct relationships and can communicate directly on social media platforms such as groups and discussion forums etc as these communication channels generate leads to sell the products (Chen, Zhang & Xu,
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Gao et al. (2009) concluded in his research that low self esteem in individuals induce compensatory status consumption. Another research explained that individual with low level of self esteem is filled with sensitivity of self-inadequacy which lead to stress and emotionally in danger (Higgins, 1987). Emotionally susceptible people have low locus of control and adapt impulsive buying behavior (Gifford, 2002). Low locus of control is related to self concept i.e. how a person thinks of herself/himself and this is highly associated with self esteem. Self concept and self esteem are developed by comparing ourselves to others, whom we admire (Sharma et al. 2014; Srivastava and Joshi, 2014). Roberts and Manolis (2012) stated that people exhibits impulsive buying behavior when they succumb to low locus of control.
12. Neuroticism ; CB and IB
People with high neuroticism get prone to have higher level of anxiety and depression however, low level of self esteem (Mikołajczak-Degrauwe et al, 2012).
Individuals with low on neuroticism show calm and self satisfied behavior (Bivens, Gore & Claycomb, 2013) while people with high levels of neuroticism exhibits insecurity, emotional distress, uneven and self worthless behavior (McCrae & John, 1992) which are associated with compulsive buying behavior (Sun & Wu, 2011). Consumers with high
Eysenck gave the name neuroticism to a dimension that range from normal, calm and collected
Intensity, sensation seeking propositions, attachment (Drouin & Tobin, 2014), agreeableness, risky behavior, addictive behaviors. Which are all areas of discussion within the argument and presented in the reviewed paper in more detail as part of the influence that take over people when they start communicating through sexting. It is also important to better understand the role of the sender and the respondent. Furthermore, other personality factors or traits to be aware of being neuroticism characteristics: people who generally experience high levels of anxiety, stress, anger, depressive moods which all make these groups in society extremely vulnerable (Delevi & Weisskirch,
If businesses expect to thrive in today’s world of connectivity, then they must accept that their most important asset is reaching and retaining customers. Expectations are higher than ever, and communities can provide the perfect outlet for customers to share their thoughts, opinions and needs. According to IBM’s research as many as 85 percent of users, say that social network sites influence them when making a purchase. By facilitating meaningful interaction between the companies and their customers, communities can supply another level of intelligence, improve customer satisfaction and therefore drive sales. Consequently, the allocation of resource, amongst each possible marketing channel, should be carefully considered in order to maximise marketing results.
The increased interest of social media usage has led numbers of company and business to provide new experiences for their customer to leverage media platforms to make more efficient and effective purchases (Rad, 2010). In addition, the emergences of Web 2.0 technologies are dramatically changing the web collaboration concepts, which made the web more social and interconnected. The aforementioned phenomenon is called “social commerce”. It is a subset of electronic commerce, which utilize social media, or online media that support interaction and user contributions to enhance the online purchase experience.
Troisi, J., Christopher, A., & Marek, P. (2006). Materialism and Money Spending Disposition as Predictors of Economic and Personality Variables. North American Journal of Psychology, 8(3), 421-436.
Schultz D. & Schultz S. (2008). Karen Horney: Neurotic Needs and Trends. In D. Schultz & S Schultz (Eds.) Theories of Personality (pp. 158 – 180).
Now one may wonder how come everyone experiencing a negative mood while shopping does not become a compulsive shopper? The reason for this is the biological, psychological, and sociological factors that cause individuals to be vulnerable and susceptible to compulsive shopping. In terms of biological factors, Faber (1992) states that many compulsive buyers are not only likely to have other impulse control disorders, but are also more likely to have eating disorders and alcoholism. Furthermore, individuals with impulse control disorders have been found to have low levels of serotonin, and, thus, when they are treated with drugs that block the reuptake of serotonin - an alleviation of symptoms is observed. This was the case for three compulsive
Workman & Paper (2010) stated that people found engage in the shopping or buying behaviour is work for escape from the negative feeling or situation, so they repeat the behaviour until fail to control the behaviour.
Social media in marketing is used as an apparatus that builds an identity for a brand and gives awareness that they thought they could have. It does not only respect buyers, but also customer allegiance. Social media is widely-ranged so it can be used in whatever way that best conforms to the strategy and wants of the business. In accordance to the social media marketing report of 2014, a considerable (64%) of marketers use social media for at least 6 hours or more and 41% for 11 hours or more weekly, more importantly nearly (19%) of marketers use up to 20 hours each week on Facebook, Twitter, LinkedIn, Instagram and many more. The report also showed 7 social media platforms that led in 2014 which are Facebook, Twitter, LinkedIn, Google+, Youtube, Pinterest and Instagram.
The second tactic is to use the Starkville Community Market’s social media page on Facebook as a method for vendors to target a wider audience. Currently, Facebook is a social networking site composed of over 400 million active users. Users of Facebook can interact with over 160 million objects including pages, groups, and events (Facebook Press Room, 2010). The Starkville Community Market Facebook page can provide detailed information about its regular vendors at the market. The number of people interacting with the page will help promote more viewers because the average user is connected to 60 pages, groups, and events (Facebook Press Room, 2010). This amount of connection can cause a spiral effect in bringing more people to its Facebook page and allowing new people to learn about more about the vendors at the market.
Social media marketing is a new trend of marketing where different Businesses have taken to social media sites to market and promote old and existing products and brands or create more awareness of their new products. Facebook and Twitter are the two most well known sites where firms market and promote themselves. Over one billion users worldwide use both sites everyday; from averages Joe’s to famous celebrities. Such is the power of each social media site that one post can make or break you.
The first advantage of using social media in business is increasing brand awareness. Social media can help business to build their brand awareness by increasing interactions with a business brand. Brand awareness means the total percent of a target people who know the company exists and what the company offers of products or services. When the brand awareness is increased, the possibility of buying is increased. Thus, efforts should be made to make the brand a part of the consciousness of customers. For example, Coca- Cola is one of the best companies that enjoy unusual...
Since social media users grow larger and larger, many companies take the opportunities of using social media marketing to reach more customers. Companies use social media marketing in order to achieve marketing communication and branding goals. Social media allows companies to see what prospects are saying about their brands and competitors. It also allows companies to build deeper relationships with existing customers that drives them to purchase again and again. Not only it can help them generate new leads, but it allows them to build deeper relationships with existing clients that drives them to purchase again and again. It has become common for businesses to branch out and experiment with multiple networks with the aim of reaching the maximum amount of costumers.
First, the higher level of hedonic consumption in women can lead to impulse buying. Buying can be a hedonic experience that involves pleasure. Moreover, the research found that hedonic consumption is statistically correlated to impulse buying and women scored higher in hedonic consumption than men (Tifferet & Herstein, 2012). Thus, women are expected to show higher levels of impulse buying. Second, women are more likely to suffer from anxiety and depression more than men (Tifferet & Herstein, 2012). Maybe, women use impulse buying as a way to get rid of the bad mood. Finally, the evolutionary development in men may prevent the behaviour of impulse buying (Tifferet & Herstein, 2012). In thousands year ago, men were responsible for looking for resources and it might require the skill of hunting. A hunt requires great care in the timing of the “purchase” which means if we strike too early and the prey will run away. Men may inherit this characteristic to be born with patience when it comes to making decision for buying.
To what extent are people willing to buy what they want over what they need, for the sake of feeding their addiction? Imagine this, a girl wakes up in the morning, brushes her teeth, dresses up, takes the car, drives through highway 75, and then reaches the destination that she has been dreaming of, North Park Mall. She roams the aisles of the mall; at first, it 's window-shopping. While looking at the beautiful window displays, she fidgets thriving for more, and more. The girl can’t control herself; her legs pull her to enter one of the luxurious stores, Gucci. While her eyes wonder at the exquisite shawls, the saleswoman interrupts her by showing her a purse, a ring, and then a dress. The girl leaves the store having spent around 5,000 dollars. She wakes up the next day, and does the same routine but with a different store. By the end of the month, the girl has spent five times the rent of her apartment, three times her gasoline bill, and ten times her grocery shopping costs. This routine is how a shopaholic functions every day. Therefore, people with lower self-esteem are more likely to be victims of being a shopaholic.