Studies on digital marketing have increased with the expansion of the social media space. Many salesmen have realized that social media can significantly aid in reaching out to more customers thereby boosting profits. However, few studies have been done concerning the use of social media as a digital marketing tool in South East Asia. In this section, the focus will be directed towards analyzing two existing researches done on the topic of social media as a marketing tool. The key issues which will be analyzed include the findings of the researchers, limitations of the studies, literature gaps, and methodology used. The analysis will be done with the aim of identifying ways in which the current study can be improved while avoiding the challenges pointed out by the previous researches. The two studies will also be compared and contrasted to understand the variations in line of thoughts of the researchers. The scope of the literature review will cover two main themes including managing of brands using social media and the impact of social media advertisement on consumer behavior.
Literature Review Search Strategy
In obtaining literature sources for the current study, the key words used included “Social Digital Marketing”, “Brand Management”, and “Social Media Advertising.” The searches were done on the Leeds University Library website. The inclusion criterion was that the selected article should have been published within the last ten years and should address the topic of study. Eventually, the two articles obtained included “The potential of social media for luxury brand management” by Seung-A Annie Jin and “Social media advertising in a competitive market: Effects of earned and owned exposures on brand purchase” by Mike Thornhill, Karen Xie, and Young Jin Lee.
Managing of Brands using Social Media
The main objective of Anne Jin (2012) study was to examine how social media marketing can be used to manage luxury brands. On one hand, the author observed that luxury brands tend to prefer exclusivity that is related with controlled distribution, premium pricing, and high quality. This implies that the luxury brands would not wish to risk brand integrity by meeting widespread demand which may arise while interacting with customers over the social media (Anne Jin 2012, p.688). As a result, luxury brand companies find themselves in a dilemma on whether to reach out to more customers over the social media or preserve their reputation by limiting their interaction with potential customers over the social media. On the other hand, the researcher noted that luxury brand companies do not have control on how customers post contents about their products. The situation is especially sensitive when a group of social media users form an anti-brand communities which intend to promote lawsuits and boycotts against the company. Such forums may post negative video clips and comments about a company’s brand hence undermining the company’s efforts to be seen as a luxury brand. Therefore Anne Jin (2012, p.689) sought to find out whether the visiting the online social media page of luxury brands translates to increased offline visits of luxury brand stores. The researcher also underlined two main functional theories associated with luxury brands. The first theory is social-adjustive theory which implies that consumers may purchase a commodity to gain approval or depict a desired social image. The second theory is the value-expressive theory in which buy goods to express their fundamental beliefs towards a particular brand. As such, the work by Anne Jin (2012, p.690) is built upon the idea on whether consumers make choices for value-expression or social adjustment.
The methodology of the study involved recruitment of 143 voluntary participants from a USA private university. The participants were instructed to sign the International Reviewed Board reviewed consent form preloaded on computers in a lab. After signing the form, the participants filled an online survey questionnaire (Qualtrics). A trained researcher then briefly explained to the participants the procedure of the study before asking them to take an online survey questionnaire. The questionnaire attempted to measure the perception of the participants on luxury brands. Participants’ attitude towards the Louis Vuitton’s brand was specifically gauged before they were directed to the brand’s Facebook page. The participants were afterwards directed by the researcher to the Facebook page of Louis Vuitton and asked to explore it for 15 minutes. The participants were then asked to complete the remaining part of the survey questionnaire. The last part of the questionnaire was designed to measure the participant’s satisfaction with the Facebook page of the luxury brand as well as the other endogenous variables. In particular, the respondents’ satisfaction level was measured by their willingness to share the brand’s Facebook page with other online friends. The researcher also analyzed the participants’ perspective of brands before the test and after the test to check whether the social media has an impact on influencing their attitudes. The responses of the participants were measured using a Likert scale with “7” representing strongly agree and “1” representing strongly disagree. The quantified data was then analyzed using LISREL 8.8.
Eventually, the research revealed several findings. Firstly, Anne Jin (2012, p.685) realized that most participants who visited the Facebook page for Louis Vuitton luxury brand expressed satisfaction with the Facebook interface of the brand. A strong correlation was identified between such group of participants and their intentions to make an offline purchase and also revisit the webpage in future. At the same time, the group of participants were willing to use the Facebook page to perform their online shopping. However, the study also showed a significant difference between participants who selected necessity goods with those who selected luxury goods (Anne Jin 2012, p.685). Specifically, the latter group were realized to express more positive attitude towards the brands and higher intentions to use Facebook online shopping as well as make offline purchase compared with the former group. The strongest correlation identified was that between customer’s attitude before viewing Louis Vuitton Facebook page and after visiting the webpage (R=0.75). The implication was that the customer’s perception about the luxury brand remained relatively the same before and after viewing the social media site.
The study by Anne Jin (2012, p.685) is significant because it provides an insight on how luxury brands can navigate the social media marketing domain and reach their intended customers. It shows that it is possible for luxury brands to successfully reach many customers without having to risk the integrity of their brands. It dispels the fear that maybe presence of luxury brands in social media can elicit negative comments and undermine the prestigious status of a brand. Additionally, the study explored the perception of the participants on whether they felt an item was a necessity or a luxury then correlated the findings with the participant’s attitude and intentions to buy the product offline. The findings of the study are crucial in validating the purpose of the current study since they indicate that consumers purchasing patterns are influenced by the design of a social media interactive page. However, in the current study, the focus will be directed towards Japan and South Korea societies which may have a different result from the study by Anne Jin (2012, p.688) which was done in the US. Comparing the researcher’s findings with those of the current study will be crucial in justifying cultural differences between the western and eastern societies in regards to how they perceive the use of social media. One aspect of the study which will be utilized in the current study is collection of qualitative data and using Likert scale to quantify the data so that it can be easily analyzed. In addition, the thematic paper structure of Anne Jin (2012, p.688) study will be emulated in the current research. The structure entails subdividing the study using subheadings as well as using research theories which underpin the study topic, and presentation of results in a table. The simple structure makes it easy for the reader to understand the topic of study and skim through the document.
The study by Anne Jin (2012, p.688) can also be compared and contrasted to that of Thornhill et al. (2017, p.85). A key similarity between the two studies is that both of them used qualitative analysis in their design. The similarity provides a hint that the research on digital marketing over the social media is a social construct which requires gathering of individual perspectives on the matter. The revelation is crucial in the current study since it will ensure qualitative questionnaires are appropriately developed to capture the main contents of the research. The concept of social status was analyzed by the two researchers in trying to understand how consumer patterns are influenced by social media marketing. For instance, Anne Jin (2012, p.688) analyzed the marketing within social media with keen reference to luxury goods which is regarded to fall within the high social status. On the other hand, Thornhill et al. (2017, p.85) explored consumer behavior for customers of all social classes. As such, the two studies help in promoting the idea that considering a demographic or marketed goods of a particular social class is a crucial aspect which shall be taken into account in the current study. Meanwhile, the two studies also exhibited some striking differences. Firstly, it was realized that while Thornhill et al. (2017, p.85) conducted their study over a period of 12 months by observing consumers behavior, Anne Jin (2012, p.688) completed her study within one week by issuance of questionnaire. As such, it was realized that the former developed a more detailed model for predicting consumer behavior with social media parameters compared to the model developed by the latter. However, due to time constraints, the current study will completed in relatively less period of six months. Moreover, while Thornhill et al. (2017, p.85) chose the participants of the study randomly based on who made a purchase, Anne Jin (2012, p.688) sampled the participants in her study from the same university. As such, it was observed that the strategy of the latter can lead to bias results compared to that of the former. The difference in sampling of participants will be carefully considered in the current study.
A review of the study by Anne Jin (2012, p.697) also revealed several limitations and gaps. Firstly, it was realized that the participants included in the research were sampled from a Private University which implies that they have a high tendency to view luxury brands positively. The research bias will be addressed in the current study by ensuring participants from diverse economic and social backgrounds are included. This will ensure the data collected resonates with the general opinions of the population targeted of Japan and South Korea. Secondly, the study was only confined to Facebook social media platform (Anne Jin 2012, p.697). This meant that participants who do not like the Facebook platform may not provide an accurate feedback not because of their dislike of the luxury brand being assessed, but rather, due to the insistence of using the social media platform. As a result, in the current study, the limitation will be addressed by allowing the participants to select the social media platform they are comfortable with and provide their opinions based on it. This is expected to evoke more accurate responses from the participants. Moreover, the study by Anne Jin (2012, p.697) only focused on one luxurious brand which was noted to be Louis Vuitton. This was noted to be a limitation since it can draw a biased opinion among a group of people such as those derived from the same university. This may be due to a trending notion about the brand within the institution. As such, a wide range of brands will be considered in the current study to ensure a more balanced feedback is obtained regarding the effectiveness of social media as a marketing too. Lastly, in the study by Anne Jin (2012, p.697), the participants were assessed as one group despite showing tendencies of selecting necessity or luxurious goods from the Louis Vuitton Facebook page. By not subdividing the participants based on their motivation to make purchases, the study did not explore how various motivations affect attitude and purchasing patterns over the social media. This gap will be addressed in the current study by assessing how various consumer motivations can be exploited by digital marketers in social media.
Impact of Social Media Advertisement on Customer Behavior
Thornhill et al. (2017, p.85) carried out a study on social media advertising in a competitive world. In the study the effects that earned and owned social media have on consumer purchase patterns of a brand are addressed. The aim of the analysis was to gauge how consumer behavior and social media advertisement relate. Further, the effect of social media advertising to both the competitors and the focus company is also investigated. The researcher noted that there are generally three aspects to social media advertising. The aspects revolve around targeting, tracking, and responding. The target group of a specific brand must be identified as an initial step. Consequently, brands must track the behavior of social media users that they target over a period of time to understand them. After understanding the target users, a proper response to their needs must be formulated and applied. As such, social media advertising should not just be done without carrying out proper background checks and coming up with effective methods. The research will be applicable in the current research in formulating ways to better target, track and respond to consumers.
The methodology of the study involved data sets which were provided by a Western European country containing the owned and earned social media exposure and the corresponding purchase brand purchase data. The brands set up Facebook pages mainly to engage and interact with consumers. The brands solely used Facebook. The media exposures were tracked for all the six brands. The brands included two brands from the focal company as well as four brands from selected competitors. For a period of 12 months, the brand purchase and social media exposure was tracked for each of the brands. Event logs that were cookie-enabled were used by the focal company to capture social media activities of the consumers. The focal brand randomly recorded the value of purchases by participating consumers who were considered as a representative sample of the entire consumer base. Whether or not an online promotion was carried during the period of the online purchase was also tracked. Consumers’ total spending during a given week, owned and earned social media exposures were then recorded. Further, promotions during the purchase time was also considered.
The researchers found out that that advertisement by a company may either affect competitors negatively or positively. Positive effect reminds the consumers about the industry which generates a spillover effects to the competitors while negative effect implies advertisement effectively convinces consumers to switch brand. On the other hand, the researchers also appreciate that advertisement by a particular brand can result into increased purchase of the competitor brands as well. When companies carries out advertisements that inform about the industry, the benefits trickle to other competitors as well (Thornhill et al. 2017, p.80). Most of such advertisements to create awareness about a general product. Social media strategies utilized by firms for the success of their products online have continuously driven the need for externality awareness. Accounting for advertising spillover by firms is one of the areas that have been extensively sought by firms. Such information are key in coming up with a proper online advertising model. The researches will be relevant to the current study in gauging both the internal and external effects of advertising. Although spillover effect is an extensively analyzed phenomena, the researchers do not shed sufficient light on online advertising spillover effect. The current research will investigate the spillover effect of social media advertising and from it, draw methods that effectively utilizes social media advertising. Particular emphasis will be placed on brands that exclusively uses online advertising for its products and services. The analysis will also pay attention to both the owned social media (OSM) and earned social media (ESM). The approach will help gauge the true effect of social media independently. It is important to note that investigating the effect that social media has on brand purchase and whether it benefits competing brands helps in proper design of the advertising mode.
Further, Thornhill et al. (2017, p.88) also investigated how consumers act affectively through the influence of OSM. Exposures and sentiments initiated by OSM influences the behavioral decisions regarding purchase. In an experimental observation, consumers were exposed to a group of products that compete with each other. The purchasing behavior when exposed to OSM and ESM effect was documented over a period of 12 months. It was realized that there is a significant advertisement spillover with OSM exposures. However, ESM exposure locks the advertising effects only to the focal brand and do not spillover the effects the competitor products. The study will be significant to the current study in understanding how various social media exposures influence consumer behavior and brand purchase. The current research will use the findings of this research to come up with effective online advertising strategies which effectively drives brand purchase. It is important to understand effect of various forms of social media exposure to brand purchase to explain the various consumer behaviors observed and the value of inputting exposure. However, it is noticed that the research does not investigate whether the effects observed could be as a result of other forms of advertising. A comparative analysis can be done to effectively follow the net effect of social media advertisement on brand purchase. The comparative analysis will divide separate the contribution made by other modes of advertising from those made by social media advertising.
Thornhill et al. (2017, p.89) also investigated the persistence of spillover effect among firms offering similar brands. The author noted quality belief that the first entrant is the best may serve to influence customer behavior. Subsequent entrants may find it difficult to change customer view. However, some forms of advertising such as those meant to inform may benefit competing brands and accelerate their market penetration. Thornhill et al. (2017, p.89) suggest that companies can create customer loyalty by giving incentives to loyal customers. Customers who develop product loyalty are rarely affected by the externalities including advertisement by competitors. The relatively narrow preferences of loyal customers is given as the reason for product loyalty. As such, social media exposure can be used to influence a product marketing strategies and product loyalty. Incentives given to loyal customers not only create customer loyalty but also increases their likelihood to refer others and recommend the product. The results of this research will be key in explaining the relationship between social media influence and product loyalty. However, a major gap Thornhill et al. (2017, p.85) is the failure to explore the effect that the age of social media users may have on the brands. The current research will fill the gap by dividing the target consumers into various age groups. Appropriate social media advertising approaches most effective for each age group will then be analyzed. Such will help brands to understand the best approach of online advertising most effective for each group of consumers. Further, there are several other factors that can be analyzed in respect to social media advertising. The most relevant ones include social status, alternative products in the market and the media platform adopted. Methods of leveraging product purchase through social media include announcing information relating to discounts and giving incentives for friend referrals. The current study will come up with ways in which social media can be effectively used to influence customer loyalty and accelerate brand purchases. Switching between brands will also be investigated and how it can be influenced.
Further analysis by Thornhill et al. (2017, p.90) investigates how consumers research brands that they probably want to use for the first time. The researcher investigates the most likely method that consumers use to learn about new products. The writer comes to a conclusion that since social media is free, it provides a cheap way for consumers to learn about a product. Additionally, social media adverts describes the products and their usage which are key when learning about a new product. Generally, the more positive OSM exposure and usually impacts brand purchase positively. The information about a product given in OSM platforms tend to sway customers to try the product thus increasing brand purchase. Such information may also convince other customers to switch products or at least, try the other product. The results of the research are current phenomena in advertising which have been observed with a range of products. However, the writer failed to investigate how product comparison with competitor products in terms of benefits and cost influence the purchase of the competitive products as well as the focus product. The current research will observe brand performance of products when social media pages display comparison features with competitors. From such, it will be easier to formulate appropriate content creation strategies that can be applied in social media advertising.
Thornhill et al. (2017, p.91) also analyses the effect of coexistence of social media advertisement and paid advertising. The researcher compared the effectiveness of social media exposure and those of paid advertisements. The aim is to come up with the relative effect of online marketing. The writer notes that most companies use the social media and paid advertisements concurrently. Use of social media and paid media concurrently is an emerging trend in marketing that companies utilize to reach the more conservative older generation and more tech savvy youths. The net effect may project increased brand purchase but at face value, it may be difficult to apportion any particular level of benefit to either social media advertisement or paid advertisements. However, when purchases are followed up, it is observed that social media advertising projects more effective influence as compared to the paid advertisement. The results of the research will be key in determining and proposing the most effective form of advertisement to invest in for the various groups of consumers. Such is also influenced by the type of product as well as observed consumer behavior.
Meanwhile, in her research, Ann Jin (2012, p. 697) also used a single brand, Louis Vuitton while Thornhill et al. (2017, p. 92) used 6 brands including 2 from a focal company and 4 brands from competitors. Additionally, the research by Anne Jill (2012, p.697) does not incorporate the effects that other factors such as discounts have on brand performance as a result of social media advertisement. However, Thornhill et al. (2017, p.92) in his research considers discounts promotions during the period of purchase. Further, Anne Jin (2012, p.689) concentrates on luxury brands in his study. However, Thornhill et al. (2017, p.92) does not specify the product types in his investigation. Specifying the product type may assist in explaining the views collected from participants as various products have varying demand curves. The degree of influence on luxury products due to online advertising may largely differ with other basic products.
Summary
Overall, the two studies found out that consumers brand social media pages have a strong correlation with the physical purchases made by the consumers. The two researches showed that consumers use social media to gain knowledge about products. This implies that satisfaction with the brand social media page also serves to influence purchases. More conspicuously is the fact that both researchers considered the participants as a single group of consumers. The participants were not divided into various ages or social class to better get an understanding of consumer behavior. Dividing participants into various groups is key in understanding various aspects of consumer views since each group will always have a different view. However, even though Anne Jin (2012, p.697) conducted her study in short period of time in which participants filled the survey form, Thornhill et al. (2017, p.92) carried out his observation over a 12 month period. The observation involved tracking consumer behavior over a period of 12 months depending on Facebook activity. Still a key gap in the studies is the use of a single social media platform and failure to analyze consumer behavior based on demographics including age and motive of purchase
Reference
ListAnnie Jin, S.A., 2012. The potential of social media for luxury brand management. Marketing Intelligence & Planning, 30(7), pp.687-699.
Thornhill, M., Xie, K. and Lee, Y.J., 2017. Social media advertising in a competitive market: Effects of earned and owned exposures on brand purchase. Journal of Hospitality and Tourism Technology, 8(1), pp.87-100.
