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SUMMARY OF RESEARCH RELATED ARTICLES

The concept of the related articles that we gathered talks about the existence of
Social media as it affects the growth and performance of the business; how it contributes
to the tourism industry; how social media audience and complaints of customers affect the
business; how Facebook gives global economic impact; and lastly, how the business press
appears to become a watchdog that bites.
Before, the only form of media known to businesses were television, newspaper
and radio, however in the early 2000’s the revolution of media was witnessed and
introduced the world to Social media, wherein it is used as a tool for communication but
at a larger scale of social interaction using highly accessible and scalable communication
techniques. Based on research, 48% of small businesses, 54% of medium businesses and
79% of large businesses are now on social media as their way to prosperity. Regional
small businesses are more likely to have a social media presence than their metropolitan
counterparts. There is a high increase in social media use. People are using it more than
ever a connection tool. Fifty percent do so daily, with just over a quarter checking it more
than five times a day. For almost half, about 49% social networking is one of the first
things they do each day and this behavior has been growing steadily since 2012. Smartphone
continues to grow as the most likely device people use to access social media through an
app as opposed to a website. The proportion that log-in on their smartphone is only
marginally higher than recorded previously but there are now more people who own smart
phones. In the 18-29 and 30-39 age groups smartphones are used for social media
interaction by over 90% people.
Social media has a positive impact and influence on company as well as the
customers. It became an essential tool for marketers, which is at a very minimum
investment. In today, consumer’s judge a company based on their online presence, hence
company can innovate and simultaneously create a social presence by always catering to
their customer’s needs and concerns. Internationally, companies have adopted social media
as an essential tool for their marketing campaign. They used it as well as traditional form
of media to market their products and to have a better connect with their customers.
Through social media, they are able to reach out more customers and cater to their specific
needs better. Companies can build their brand image via social media. It is indeed, an
effective tool in doing business today and brings out innovative strategies out of companies
that used to be very monotonous. Companies that are at maturity stage in the product
lifecycle can adopt social media to extend their business survival. If they fail to do so;
they are undoubtedly going downhill in the coming years.
Social Networking is a powerful medium to advertise good things about people and
places. It is used to promote the tourism industry through networking sites where people
mostly communicate and meet new ventures. Facebook, Twitter, Youtube, Blogs and
Websites were the social networking sites frequently used by individuals and hospitality
industry. Social media applications served as an avenue to disseminate the information
faster especially for the tourism establishments with lesser cost. Facebook continues to be
the most popular platform by far, with Linked in and Twitter relatively prominent,
particularly in medium and large businesses where Instagram and Youtube are also common.
Other platforms do not have widespread appeal, although almost one in five large businesses
uses google+. Paying for advertising on social media correlates with business size, with
strong growth among large businesses. Large businesses are much more likely now paid
to advertise on social media than small businesses. Facebook is considered as the most
favored social media advertising channel across the business world with Linked In, Twitter
and Instagram gaining traction. Advertising their social media presence in traditional media
or other websites correlating with business size is not uncommon, especially for large
businesses. They are also, more likely to use links in on other directions, competitors, and
events than small businesses.
Facebook connects more than billions of people with their friends and families
around the world. It helps people to discover new products and services from local and
global businesses. It is a catalyst for economic activity in ecosystems which is composed
of marketers, app developers and providers of connectivity. It stimulates economic activity
and jobs in three broad effects: as a tool for the biggest and smallest of marketers; as a
platform for app development; and as a catalyst for connectivity. Facebook’s business
model focuses on tools that allow businesses to reach new and existing customers through
pages and advertising. These tools help businesses grow their sales and ultimately employ
more people. Marketing effects, form the largest share of the economic impact facilitated
by Facebook. The purchases of mobile devices and connectivity services motivated by
Facebook also contributed to the economic impact. Internet-based businesses such as
Facebook facilitate broader economic activity across a series of economic agents. These
broad economic impact enables far more revenue and jobs for global and local economies
that Facebook's own company operations. Thus, it facilitates economic activity. It allows
new and traditional businesses all over the world to reach customers locally, nationally
and globally. It also reduces barriers to marketing by helping businesses of all sizes raise
awareness of their brands and find the people most likely to be interested in their products
and services. It supports entrepreneurship by providing a way for businesses to promote
their activities. It enables new ecosystem such as the app economy that stimulate innovation
and generate jobs. It also influenced the increasing demand for mobile devices and internet
services that carry positive spill-overs to other part of the economy. Facebook really
captures a diversity of contributions across different regions. It has a positive effect in
global economy and help increases the number of jobs in the ecosystem. The economic
impact estimates include employee spending and economic activity generated in the supply
chains of the companies directly active on Facebook, and exclude intermediate costs.
Social media increasingly appeal as a customer feedback mechanism for rating and
reviews especially among small businesses. More and more people are rating and reviewing
products and services on social media platforms. One of the main reason customers connect
with businesses on social media is to get discounts and vouchers. In fact, three quarters of
small businesses are using this technique and two thirds of medium businesses. Among
businesses offering such incentives, discounts are easily the most popular with small
businesses for about 75%, stand out for medium sized businesses with 62% and large
businesses with 69%. The essence of establishing a good communication strategy towards
your customers is important especially those who engage on social media. Your social
media audience behave on how the conversation started. To maximize your audience, it is
important to establish a good conversation in a warm and accessible way. The basis of
deciding the content and strategy of your campaign lies on the biggest differentiator you
have, which is your personality. Your website tells your customers what you sell, but your
social tells your customers why they should buy it from you. Giving up on social media
is a big mistake because most of your customers engage on it and they are expecting
something from your business such as updates, additional features, free services, etc. Most
of the customers, follow a brand or continue to engage in your business when their
expectations met. It is important to provide your customers the satisfaction they want. They
expect content to reflect their reasons of following the brand, how they feel about it and
how it compliments their lifestyle. Social media is the new digital marketing tool for
businesses. The technique is not to think too much about the tools, but more on the type
of conversation you want to have with your customers. It is the interesting stuff that drives
engagement and differentiates you against your competitors. Accordingly, brand management
can be made simple if engagement remains the goal. Defining your social media strategy
is easy and will come across in a warm, accessible and engaging way if you imagine the
ideal dinner party conversation you want to have with your customers.
Complaints is considered as an indicator of organizational performance assessment,
signalling some problems or failures in internal processes that need quick recovery in order
to avoid migration of profitable customers. The organization must learn that the
consequences of losing clients are both profit decrease and negative word of mouth. There
are circumstances that customers become unhappy due to various problems or difficulties
that are not always under the direct control of the company. Customer’s opinions, thoughts
and expressions are not well presented which leads to bad impressions and unfair criticism.
They become dissatisfied when product or service performances are not up to their
expectations.
To address the problem, it is important that management must propose an action
plan. One must be familiar with different social media applications to avoid negative usage.
The social media application users must utilize filter folder against spammers to reduce
unnecessary messages. The establishment should conduct a meeting with their employees
regarding rules on the use of social media and how it affects the company’s reputation.
Management must implement strict rules that will protect the company and by keeping
them normed and posted with all the guidelines using social media in regards with the
company’s privacy. The first thing recommended to managers in their effort to systematically
learn about customer negative experiences, restore satisfaction and strengthen business
relationship is encouraging your clients to express their discontent.
Complaint management is the process of disseminating information aimed at
identifying and correcting various causes of customer dissatisfaction. It defines strategies
used by companies to solve and learn from the previous mistakes in order to restore
customer confidence in organizational reliability. The information gathered from customer
complaints has of great significance for the quality management process, as it can be used
to correct and learn about the weaknesses in product quality and delivery system.
Understanding the potential sources of dissatisfaction and customer’s reaction to negative
situations are necessary requirements in designing an effective service recovery strategies.
Complaint handling involves the strategies used by companies to solve and learn
from product and service failures in order to strengthen the organization’s reliability in the
eyes of the customer. The development of the effective complaint management process
must take into account customer expectations and justice dimensions in order to achieve
higher levels of customer satisfaction and to avoid switching behavior. Thus, it simply
proves that dissatisfaction lead customers to both migration behavior and negative referrals
to other potential buyers, adversely affecting retention rates, profitability and organizational
image. Therefore, customers who make complaints provide the company with additional
chances to identify internal deficiencies and to develop an appropriate recovery strategy.
The management should focus on actively encouraging complaining behavior and
establishing effective procedures to solve problems, to remove the causes of dissatisfaction,
and to provide prompt answers to affected customers. By designing an integrated complaint
management system, organizations have the opportunity to learn from customer feedback
and to exploit this information in order to decrease weaknesses, improve business
performance, avoid future negative experiences and re-establish customer satisfaction, loyalty
and relationship commitment.
In today’s generation, press is very influential in our everyday life. People tend to
believe directly the information they spread. In terms of financial communication, business
press is highly influential and powerful. Specialized analytical skills are strong in the
business and trade press. Market response tend to be huge when an article is published
based on original research. The Press is a very early source for uncovering accounting
malfeasance. They spend more energy examining big-name companies or small companies
with a “dirty laundry” angle. Actually, the press was generating the idea that there was an
issue. They start by collecting information to develop knowledge of these companies that
they start to get a sense of something that’s not right and then they follow up. It appears
that the press did the legwork, whether through private tips from somebody in the company,
through suppliers or customers at trade shows saying something was weird, or through
tracking the names of people who had been involved in fraud in the past and finding
another company they’re in. But, there is a real bias in whom they cover. They pursue to
big companies or small businesses if they can tell the story in an interesting way. It is
clear that they cover stories that are easier to identify. The more people that were involved
in a fraud, the more likely it was to end up in a press article.
The business press serve as a threat to managers more than anything else. A lot of
managers underestimate the press and think that they’re not resourceful enough to dig up
stuff and deal with highly technical information. But, what they think were wrong because
press are like watchdogs. They can switch from a repeater of stories to a creator of stories.
Thus, it is important to develop a good relationship with the press. Don’t try to spin
things and try to use them rather be honest with them. There’s always someone in the
press looking to put out negative spin. If you have developed a good relationship over
time, then you’ve got people who really understand the company. So, if somebody puts
out a negative spin that’s not correct, there’s going to be enough other press out there to
counter that. But if you only go to the press when you feel like you’ve been treated
negatively, there’s a doubt that they will believe you and take your side. Therefore, the best
thing that you should do in dealing with the press is to BE HONEST with them.

ARTICLE REFERENCES:
1. THE IMPACT OF SOCIAL MEDIA ON BUSINESS GROWTH AND
PERFORMANCE

2. EFFECTS OF SOCIAL MEDIA IN THE TOURISM INDUSTRYOF


BATANGAS
BY: DEXTER R. BUTED| Nancy S. Gillespie | Jandel B. Conti | Bernadeth A.
Delgaldo | Ruth Mae P. Marasigan | SherKimmie A. Rubico | Sevilla S. Felicen

3. ENGAGING YOUR AUDIENCE ON SOCIAL MEDIA


BY: YELLOW PAGES DIGITAL & MARKETING SOLUTIONS- CANADA

4. SOCIAL MEDIA AS A TOOL


BY: SMALL BUSINESS SECRETS

5. FACEBOOK’S GLOBAL ECONOMIC IMPACT


BY: 2015 DELOITTE LLP

6. HOW COMPLAINTS PSYCHOLOGY AFFECTS BUSINESS


PERFORMANCE

7. THE BUSINESS PRESS IS A WATCHDOG THAT BITES


BY: MARTHA LEGACE