Raffles College of Higher Education Singapore

Applied Research Methods June 05th, 2012

Analysis of Social Media Affecting on Businesses: How Social Media Helps Companies Establish Effective Online Marketing - Assignment 2-

Lecturer: Student:

Mr. Rohai Chan Leo Loi (004MG412)

Table of Contents
Methodology ................................................................................................................. 2
Data Needs and Data Sources ............................................................................................ 2 Method of Data Collection.................................................................................................. 2

Data Analysis and Interpretation ............................................................................... 4

Users responses in depth..................................................................................................... 6

Conclusion and Recommendation .............................................................................. 8 Appendix ..................................................................................................................... 10

Survey Questions ........................................................................................................ 10

References ................................................................................................................... 11

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This report is continue from previous research topic, Analysis of Social Media Affecting on Businesses: How Social Media Helps Companies Establish Effective Online Marketing Assignment 1 (May 26th, 2012).

Methodology
Data Needs and Data Sources
Base on the previous literature research, the researcher spotted that there was some missing information related to the topic. In order to gain more relevant result to the research topic, the following information is needed. Statistics of online users responding to business pages or business ads on social media. The rate of business pages being share by subscribers to other users on social media. The aspects that motivated social media users to subscribe on brands.

Method of Data Collection

To retrieve relevant needed data, the researcher had gathered information through online articles, past research studies, as well as conducted the researcher own online survey. An online survey helps researchers to conduct their research in a more fast and efficient way, whereas enable them to easily monitor the results throughout the surveys launching period. Through this type of survey method, the researchers can also gain benefits such as to receive more accurate and relevant answers from the survey participants, due to the fact that the participants are allowed to do their survey in an unlimited time pressure, as well as to chances to re-read the questionnaires more

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clearly; Using online survey not only allowed the researchers to survey their questionnaires in an specific area, but also enabled them to reach out to world-wide audiences. Moreover, online survey are more cost efficiency compares to other survey methods, whereby has been favored by many researchers (Survey Bounty). The researcher conducted his online survey through Toluna Quick an online survey site. The survey was launched on May 28th, 2012 and ended after one-week period, whereby having only 25 respondents participated to the online survey.

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Data Analysis and Interpretation

Through the conducted survey on Toluna Quick, the researcher had also gathered data relevant to previous research on literature reviews. For instance, the rate of online users login to social media site, as well as the response rate of social media users toward business pages and ads. The survey used Facebook as the main social media site to gather related information, since Facebook is currently one of the most popular social media on the Internet, and being know worldwide. The survey received 25 respondents, whereas 45% were male and 55% were female. Over 96% of the respondents were in the age group of 18 to 34 and mostly are still undergraduate university or college students. Through out the survey, 80% percent of the respondents confirmed that they login to Facebook everyday, which relatively proved that the tremendous number of worldwide Internet users login into social media sites, such as Facebook tended to be true, and the use of these sites have changed the way we interact with Internet, and information technology.

Toward the research of social media users responding to business pages on social media sites; over 19 survey participants replied that they subscribed on brands or business pages on Facebook, whereas 64% of them responded that they actually follow these brands ads and posts on the site. A research conducted a year earlier by Chris Lake on E-consultancy also review on the same manner, whereby shows that

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most of social media users subscribing to business pages are mainly because they want to receive notification of new offering from the brand, as well as to follow events and leaving feedback. With the research aimed on more than 500 business page subscribers on Facebook, Lake analyzed that the norm between two and five respondents in his research, 35% replied that they followed more than five brands on the social media site, and 13% noted that they followed more than 10 brands on Facebook (Lake, 2011).

Through the conducted online survey, the researcher also collected data related to the rate of users share business pages to the people they know on social media, which may also reflected as the process of word-of-mouth in the research framework. The survey received more than 56% from the total of 25 respondents stated that they tended to recommend their friends to the brands or business pages they subscribed on Facebook. Similar to Lakes research, nearly 60% of his researchs sample size also stated they recommended friends to subscribe on brands as well (Lake, 2011). In order to gather the rate and aspects of how other users react to the recommended page by friends on Facebook, during the survey the researcher asked the participants in return of how they would respond to these recommended pages. As a result, 18 people of 25 respondents replied that they would subscribe the recommended brand base on personal interests; for other respondents, they tended to

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response base on the popularity and the well received contents from the business page.

Overall, the survey information gave the researcher an overview of how the users of social media sites respond to companies online marketing. Whereas generally reflect on the rate and interest of each individuals toward subscribing brands on the social media community.

Users responses in depth

In order to understand more deeply into the aspects that trigger the social media users to subscribe on business brands, the researcher reviewed some relevant past researches, which explains further of users motivation and social media marketing. A research conducted by Hsu-Hsien Chi from Shih Hsin University Taiwan gives information of how Taiwanese social media users respond to online Interactive Digital Advertising versus Virtual Brand Community. Through the report, Chi mentioned that there are two aspects that motivate us to use social media, which are the needs of social capital the social relationship (Social Capital Research), and Psychological Well-Being Self-esteem and life satisfaction; and two types of social media marketing, Interactive Digital Marketing and Virtual Brand Community.

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The different between the two types of social marketing is that, Interactive Digital Marketing basically aims at making advertisement that is able to differentiate, or stand out the brand from its crowd competitors in the market (Mehrotra, 2011). Whereas on the other side, Virtual Brand Community mainly focus on promoting the brand through several online tools, such as chat rooms, forums, and discussion areas such as social network. Different from Interactive Digital Marketing, Virtual Brand Community approach allows opportunities for companies to discover the motivations, feeling and issues regarding to the buyers behavior and market trends (Aviva). The research of Chi also shows relevant statistics of how Taiwanese online users respond to these two types of social media marketing approaches. As a result, most of the users voted for Virtual Brand Community, whereas this type of approach not only be able to allow them to have more in depth information about the products or services the company offers, but also enable them to receive more newsfeeds of the companys activities. Through this approach, the users can also find relevant information regarding to the customers experiences toward the company products and services, before they actually make their own purchase (Chi, 2011).

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Conclusion and Recommendation

As social media keep becoming popular and dominance the information technology era as a form of individuals communication channel, it also tends to attract more and more businesses to use it as a new form of communication tool to interact with their customers as well. The birth of social media has also changed the way of how companies used to conduct marketing via the Internet. Whether the business is big or small, establishing an online marketing on social media, such as Facebook can help the company to gain great benefits. Whereas besides enhancing brand recognition to the social community, the company also can gain much more benefits, such as low cost efficiency, customer feedback, as well as chances to counter new potential customers. Even then, the process of social media marketing requires frequent monitoring, which mean companies adapting social media marketing should regularly update their profiles and posting blogs regarding to their products or services, or events and activities which the company is offering; during this process, company should also pay attention to the contents they are posting, whereas posts that fill with positive content and creative design often grab more attention from the audience. On the other hand, posting too regularly can also trigger negative affect to the whole marketing effort, whereby the subscribers may find the brand to be annoying, as well as disturbing their privacy. Overall, this research study aims at proving that businesses have shifted their marketing effort from the traditional marketing concept, to a more social perspective. Whereas in today competitive markets, rich capital, resources and effective products and services production is not enough; the rise of information technology has also created more pressure to the competition, where customers are now deeply interact with products and services via the entire digital space. By doing this, they are now

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enabled to search for information from multiple outlets, giving feedback and share information with billions of online users worldwide. As a result, customers are now expecting more from businesses, whereas they would often search for companies that offer more benefits for them compare to others (Hisaka, 2012). Conducting online social media marketing allows companies to gain some more in depth to the expectation of their market. Whereas can help to enhance greater marketing result. But even then, companies should also focus on operate and develop their daily business operations. For instance, products and services production, human resource management, as well as other marketing approaches, such as TV or newspaper ads, conducting events and activities, customer relationship management. With effective mix and coordination from different function and department, the company will then be able to conduct its business in an effective way toward fulfilling its goals and mission in the competitive market.

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Appendix
Survey Questions

Analysis of Social Media Affecting Businesses

Dear survey participants, The following survey is conducted for the purpose of my Applied Research Methods class assignment - at Raffles College of Higher Education, Singapore. The topic of the assignment is related to analysis of how social media (such as Facebook) have affected to our global business environment. Your participation to the survey is truly appreciated. Thank you for spending your valuable time on this survey. Leo L. Chan Question 1: How often do you login Facebook? Everyday Few times a week Once every few weeks Months Question 2: Do you subscribe and follow brands/business pages you like on Facebook? Yes No Question 3: How often do you follow these brands new posts, events and advertisements on Facebook? Always Often Sometimes Rarely Never Question 4: Do you tend to recommend friends on Facebook to subscribe on these brands/business pages? Yes No Question 5: How are you willing to subscribe on brands/business pages that friends suggested on Facebook? Always Base on personal interests Base on popularity of the page Never Other, please specify ______________________

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References
Aviva. (n.d.). Virtual Brand Communities. Retrieved June 03, 2012, from Aviva: http://www.marketingcupboardmentor.co.uk/wp/?wpp=virtual%20brand%20commun ities&WPID=1497 Chi, H.-H. (2011). Interactive Digital Advertising vs. Virtual Brand Community: Exploratory Study of User Motivation and Social Media Marketing Responses in Taiwan. Retrieved June 03, 2012, from Journal of Interactive Advertising: http://jiad.org/article152 Hisaka, A. (2012, April 26). The Future of Social Media and Business. Retrieved June 03, 2012, from Social Media Today: http://socialmediatoday.com/alexhisaka/496960/future-social-media-and-business Lake, C. (2011, February 08). Why do people follow brands on Facebook? Retrieved June 03, 2012, from E-consultancy: http://econsultancy.com/us/blog/7136-why-dopeople-follow-brands-on-facebook Mehrotra, R. (2011, July 18). What is Interactive Advertising. Retrieved June 03, 2012, from Buzzle.com: http://www.buzzle.com/articles/what-is-interactiveadvertising.html Survey Bounty. (n.d.). 23 Advantages of Online Survey. Retrieved June 3, 2012, from Survey Bounty: http://www.surveybounty.com/articles/surveyadvantages.html Social Capital Research. (n.d.). Definitions of Social Capital. Retrieved June 03, 2012, from Social Capital Research: http://www.socialcapitalresearch.com/definition.html

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