CHAPTER ONE
INTRODUCTION
1.1. Background of the Study
Social media marketing has become one of the contemporary tools for marketing (Nanji, 2015). Since the beginning of 21st century, the use of internet and social media has turned out to be part of business strategies by many brands and individuals. With the revolution of internet/IT, the manner in which business transactions are conducted has changed greatly, and it is necessary for business owners to adapt and adopt the new technology (Li & Zhang, 2012). As a result, business owners these days are using internet/IT to market their products, and these tools are equally used by researchers, practitioners and policy makers (Gohary, 2012). Consumers, most especially students who are used to shopping at physical stores, such as the Shoprite malls, supermarkets, etc., for instance, are now applying the use of social media to make purchases for products they need without physical appearance (Hsiao, 2017).
Chi (2011) defined 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 channels to communicate with customers have changed significantly with the emergence of social media; for that reason, businesses must learn how to use social media appropriately in a way that is consistent with their business plan (Mangold & Faulds, 2018). This is especially true for business owners who are striving to gain a competitive advantage. Today, social media provides ease of access to customers with the intent of knowing their interests and needs as well as affecting their purchasing decisions. The exposure and embracement of social media as an important element in the daily lives of the global population has influenced the buying patterns of the consumers immensely (Ramanathan, Subramanian and Parrott 2017). Due to the change in the buyer-seller dynamics, firms and business owners are forming a new department which are separate from the traditional advertising sectors and marketing departments, by hiring social media analysts and brand community managers (Ramsaran-Fowdar 2013).
According to Eerdogmus (2012), social media is regarded as the websites that unite millions of users across various parts of the world who share similar interests, opinions and hobbies. Facebook, Twitter and YouTube are among the best examples on social media tools that are popular for a large proportion of consumers. Hence they are used for the exchange of ideas and reviews of a particular product, service or a certain brand to gather information and ideas as well as making the right purchasing decision (Ayda, & Wei Li, 2012). In this era of digitalization, customers utilize the internet by reviewing the retailers and trust other people’s opinions and experiences with the product or service mentioned in the review section. These reviews in social media guide shoppers via emotional experiences. Any negative review left by a customer may discourage the potential future buyers (Ramanathan, George and Ramanathan 2013). Prior to the age of internet, customers could only get information about a product by physically visiting the outlet or store. Therefore, firms need to explore more via social media marketing to ensure consumer satisfaction and profitability (Keiningham et al. 2014).
Through the use of smart phones, users like undergraduates have been able to stay connected with social networking websites (such as Facebook, Twitter, LinkedIn) on a daily basis (Raad et al., 2010). On social media, user-generated content are produced on a day to day basis in the form of product reviews by customers (Mathwick et al., 2016; Zhu and Zhang, 2015). The use of social media for marketing enhances the brand popularity (De Vries et al., 2012). Social media offers buyers the opportunity to consult with sellers or brand directly (Christodoulides and Jevons, 2011; Christodoulides, 2009), and express their perceptions with one another.
Most of university students now use social media networks as tools to disseminate information, communicate, and promote their products and services. University students use and apply social media tools as well in their academic research and their leisure time engagements. According to Adewale (2016), blogging in Nigeria is not just a pastime for opinion leaders, but a form of collective behavior emphasizing the cultural need of togetherness in the Nigerian society. Falahah and Rosmala (2011) argued that the phenomenon of social networking access occurs in higher education environment despite the debate about negative impact of social networking usage on academic performance. Some students and lecturers use these websites to disseminate information and enhance communication among them (Falahah & Rosmala, 2011).
In fact, the technological advancement, and its consequent globalization, has enabled every person to have access to the internet and social media websites irrespective of country or culture. According to a survey, 85percent of consumers expect firms to use social media as means of interaction with consumers (Facinelli 2009); the significance of social media as a communication channel is growing quickly. Time magazine has as well recognized the participation of the consumers, i.e., us, as 2006’s ‘Person of the Year: You’ (Grossman 2006). As a result, social media changes the perception of people all over the world. Therefore, social media marketing has greater impact on the behavior of consumers, especially undergraduates, as compared to other marketing tools.
1.2. Statement of Problem
In contemporary days, social media marketing has emerged as a new marketing tool. The aim of many business owners is to enhance profitability by using the effective marketing strategies (Cheung & Lee, 2015). Social media has become one of the important channels for maximizing profit because of its accessibility to consumers and across many users, with the aid of sites like Facebook, twitter and other media. The universal accessibility of the internet has ushered in the use of the internet as a marketing tool, and also offered opportunity to corporations and business owners to change the consumer perception through social media marketing.
The rapid rise in popularity of social media sites began in the second half of the last decade partly because of their extensive usage by school and university students. According to Ellison, Steinfield and Lampe (2017), for instance, a significant number (approximately 73percent) of Internet-using teenagers have joined social networking sites by the end of 2016, with almost half of them (58%) visiting social networking sites on daily basis. According to Paquette (2013), social media provide a lot of aspects that enable the firm and business owner to share their brand and attain the needed attention to it. For instance, social media websites can generate consumers’ sentiment, motives, contents, attitudes and prospects through the virtual community that they build for the brand (Andrei & Zait, 2014; Hashem, 2016).
Ellison et al., (2017) claimed that students tend to participate in such website activities while doing their homework and as a result, it may affect their academic performance negatively, because it will interrupt them from the learning process. Therefore, it is hard to ignore the fact that there may be a direct link between social media marketing platforms (Facebook, whatsapp, twitter, messenger, etc) and student academic performance. Since the problem is relatively new, it is believed that many attempts will be made to answer the research questions.
Furthermore, it has been observed that the issue of anonymity on all social media platforms offers an exceptional opportunity for promoting fake businesses, products and services, writing fake contents or broadcasting rumors concerning a product offer. This often leaves a negative impact on the potential customers and other genuine business owners (Cheung & Lee, 2015).
Though, quite a number of studies have been examined by various authors (Cheung & Lee, 2015; Ellison, Steinfield and Lampe, 2017) in different countries. However, despite the increased use of social media marketing among university students in Nigeria, there is little research done so far on this subject matter, and those researches were conducted in developed countries without attempt to address the perception and usage of social media marketing in developing countries. As a result, there exists a gap in this area. Thus, it is pertinent to engage in a systematic investigation of the credibility of social media marketing, with an emphasis on the impact of its usage among undergraduates in Nigeria. This study would use undergraduates of Pan-Atlantic University as a case study.
1.3. Research Objectives
The primary objective of this study is to investigate the credibility of social media marketing and its usage by Pan-Atlantic University undergraduates. However, the specific objectives are to:
- assess the credibility of social media marketing on customer engagement by undergraduates of Pan-Atlantic University
- examine the perceived impacts of social media marketing on branding by undergraduates of Pan-Atlantic University
- identify how undergraduates of Pan-Atlantic University use social media marketing to enhance customers-patronage.
1.4. Research Questions
Based on the above research objectives, the following research questions would be addressed:
- How likely are undergraduates of Pan-Atlantic University to perceive social media marketing as a credible source of customer engagement?
- What are the impacts of social media marketing on undergraduates of Pan-Atlantic University?
- To what extent do undergraduates of Pan-Atlantic University use social media marketing to enhance customer-patronage?
1.5. Significance of the Study
The findings of this study will add to the wealth of information presently available on social media marketing and its usage among university students, business owners, brands, potential users among others.
The results of this study would be significant in the sense that, it would enable business owners, brands, companies, and internet users in general identify the suitable social media marketing tool that will boost their customer engagement and patronage as well as promote their brand.
Furthermore, the outcome of this study will provide information on the credibility of social media marketing and its use by students. The results of the study also are expected to contribute to closing the gap in literature with respect to understanding the obstacles and opportunities for social media marketing in academic and business environment.
Lastly, the study will highlight the importance of social media marketing as a vehicle for promoting brands, products and services, as well as encouraging active patronage.
1.6. Scope of the Study
This study will investigate the credibility of social media marketing and its usage by undergraduates of Pan-Atlantic University. It will focus on undergraduates of Pan-Atlantic University in Lagos State, Nigeria, with the aim of determining how various social media marketing enhances the businesses of the students and how often they use social media marketing. The reason for the choice of undergraduates is that they are more knowledgeable when it comes to social media usage. This will enable the researcher gather first-hand information, with accuracy, on the subject matter.
1.7. Definition of Operational Terms
Social Media: Social media is defined as the websites that connect millions of users from different parts over the world who share same interests, point of view and hobbies.
Undergraduate: Undergraduates are student who are yet to receive their Bachelor’s Degree
Marketing: This is an organizational function and a set of processes for creating, communicating, and delivering value to customers, and for managing customer relationships in ways that benefit the organization and its stakeholders
Social Media Marketing: It is the type of marketing (buying and selling of goods and services) internet. It provides a way to consumers for social interaction and centered networking.
1.8. Literature Review
The necessity of the review of relevant literature is to determine the extent of works done on the area of study, as well as what the present study can benefit and the loopholes. Research work is not complete without having an insight and understanding of related knowledge or information in literature relevant to the study. An understanding of extant related works will give the researcher a better insight into the problem area, as the researcher will not only be equipped with information on what has been done but as well on what is yet to examined. It is on the above statement that one can consider the content and nature of related publications on social media marketing and its usage among undergraduates of Pan-Atlantic University, Lagos State, Nigeria.
Makesh (2013) report that, social media marketing is seen as a form of internet marketing that utilizes social networking websites (such as Facebook, Twitter, YouTube, etc) as a marketing tool. According to him, social media marketing provides organizations with a way to connect with their customers. However, organizations must protect their information as well as closely watch comments and concerns on the social media they use. A flash poll done on 1225 IT executives from 33 countries revealed that social media mishaps caused organizations a combined $4.3 million in damages in 2018. The top three social media incidents an organization faced during the previous year included employees sharing too much information in public forums, loss or exposure of confidential information, and increased exposure to litigation. Due to the viral nature of the internet, a mistake by a single employee has in some cases shown to result in devastating consequences for organizations.
Ghania, Mirza and Mirza (2014), examined the role of social media and social networks in consumer decision. The study results showed that media and social networking has an impact on consumer decision making. The consumers in Pakistan use few social media platform, e.g. YouTube compare to social network sites Facebook and Google along with their own personal decision making. The study showed that social networks had a positive impact on consumers’ behavior, in addition to the positive population interaction with virtual community of the social media. As a result these interactions collaborate into the strong implications of smart companies to become smarter about their online present. It as well highlighted the importance of raising awareness, consumer loyalty and trust. Furthermore the study covered the effect of e-marketing and online apparel business strategies on consumer decision. In conclusion the use of these online platforms are not just away for current existing companies to increase the awareness about their brands, but as well it is an opportunity for small business to familiarize more people about their unique product and services.
According to Ayda Darban, and Wei (2014), investigated the impact of Online Social Networks on Consumers’ Purchasing Decision. The purpose of this study is to examine the impact of online social networks (Facebook), the authors are trying to find which steps do online social networks influence consumers’ purchasing decision when it comes to food retailers; and why are these steps influenced by online social networks. Firstly, the steps are promotions and offers, company/store information, activities and services. Secondly, the reasons behind online social network (Facebook) on consumers’ purchase decision. It was found that, consumers can express their satisfaction or dissatisfaction about their experience to companies, about products, or services, or share their knowledge and opinions on their online social network and share with others.
According to Curran et al. (2011), social media sites such as Facebook are better than other advertising avenues because it stores information on all its users thus ensuring marketing reaches a retailer’s specific target market. Social media sites are a great stage for retailers to create an experience and retailers can use information stored on social media sites to improve user experience with their brand.
Chu (2011) also found that users who are Facebook group members maintain a more favorable attitude toward social media and advertising. Users who have more positive attitudes toward advertising are more likely to join a brand or a retailer’s Facebook group to receive promotional messages. Based on this result, Chu (2011) suggests that a link exists between consumers’ use of and engagement in group applications on a social media sites. The relationship between consumers’ use of and engagement with group applications influences the rate and effectiveness of advertising on social media, particularly Facebook. Generally, as Chu (2011) notes, Facebook’s college-aged users have the most favorable attitudes toward social media advertising and are the largest growing demographic, which suggests that social media sites are a potentially rich platform for online advertising campaigns, especially for companies with a younger target market.
Following the above review, it can be seen that despite the importance of social media marketing, no study has been conducted in the area of social media marketing and its usage among undergraduates. As a result, there exist a gap, which this study will shed more light by examining the effect of social media marketing and its usage among undergraduates of Pan-Atlantic University, Lagos State, Nigeria.
