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THE EFFECTIVENESS OF SOCIAL MEDIA IN ONLINE BUSINESS

RUNNING HEAD: THE EFFECTIVENESS OF SOCIAL MEDIA IN ONLINE


BUSINESS

THE EFFECTIVENESS OF SOCIAL MEDIA IN ONLINE BUSINESS

Balawang, May Lanie R.

Ereve, Angel R.

Escresa, Danica C.

Miday, Johnniel S.

Tirona, Jennyrose S.

Mr. Jayson Seel M. Maravilla

Practical Research 2

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THE EFFECTIVENESS OF SOCIAL MEDIA IN ONLINE BUSINESS

Table of Contents

Chapter 1

Acknowledgement ………………………………………………………… 3

Introduction …………………………………………………………..... 4

Background of the Study ……………………………………………………………. 5

Scope and Limitation ……………………………………………………………. 5

Significance of the Study ……………………………………………………………. 5

Hypothesis ……………………………………………………………. 6

Supporting Questions ……………………………………………………………. 6

Chapter 2

Review of related literature …………………………………………………………… 7

Conceptual Framework …………………………………………………………… 8

Chapter 3

Methodology …………………………………………………………… 9

Chapter 4

Review and discuss ……………………………………………………12

Table no. 1 ………………………………………………15

Graph no. 2 ………………………………………………16

Table no. 3 ……………………………………………… 17

Chapter 5

Summary of Findings ………………………………………………………14

Conclusion and Recommendation ……………………………………………………………14

Personal Background of the researchers ……………………………………………………..18

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Chapter 1

ACKNOWLEDGEMENTS

The researchers would like to extend their deepest gratitude and appreciation to all who

have helped and support them to finish this study.

The researchers would like to thank their thesis adviser, Sir Jayson Seel Maravilla, for his

consistent provision and guidance in doing this research paper. They are also extremely thankful

and indebted to him for sharing expertise, valuable guidance and encouragement.

The researchers would like to thank the participant in their survey, who had willingly

shared their precious time during the process of interviewing.

The researchers would like to extend their deepest appreciation and gratitude to their

families who has been there to encourage and support them.

Lastly is to God, for giving them the wisdom, strength, and patience in doing this

research study.

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THE EFFECTIVENESS OF SOCIAL MEDIA IN ONLINE BUSINESS

Introduction

These days, men cannot live without the internet. The internet is so popular nowadays

that almost everyone uses it. It can be accessed by user of any age and condition.

The Philippines has been consequently catching up with other countries over the past few

decades when it comes to providing the nation with access to the Internet and the rest of the

world. Since then, Philippines has seen quite a number of milestones in this journey, all of which

started in 21 years ago in March 29, 1994, when users first got to establish a connection to the

Internet. It has opened the doors for progress on the side of having Filipinos have access to the

information the Internet offers over the following years ever since.

Now, because of the Internet, the Philippines has one of the highest penetrations in social

media, according to the Wall St. report, "The Ten Nations Where Facebook Rules the Internet."

Now, Philippines has beaten the global average in terms of the proportion of businesses

that use social media as a means to market their products and boost revenues. This is according

to the results of the latest survey by Grant Thornton showing that 44 percent of enterprises in the

country use social media—one of which is the social networking site Facebook—to improve

profitability. Social media has become mainstream and businesses have seen this trend.

Social media is online communication channel that is widely used by mass consumers

and businesses had seen the opportunity to venture in the online world. With a vast reach of

social media, with a huge market and easy to access consumers, the researchers conclude that

social media is highly effective in the online businesses.

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THE EFFECTIVENESS OF SOCIAL MEDIA IN ONLINE BUSINESS

Background of the Study

The nature of online business is changing rapidly. Businesses create their own websites

before. Now, they also venture through social media applications especially Facebook, YouTube,

Instagram, Twitter and the like. In this research, the researchers want to know what the strategies

of entrepreneurs in online world are and how they handle their business especially in social

media.

The researchers have come up to this kind of study to be able to understand the E-

commerce as an ABM student. This will serve as a big aide for ABM student to know the

introduction matters of selling a product or services through social media and how it is effective

for the online businesses.

Scope and Limitation

This research aims to determine the effectiveness of social media in online businesses

effective strategy to promote the product, service or idea.

Students in Mayamot National High School will be covered as a part of respondents for

survey. The study is limited to 40 students of Mayamot National High School from School Year

2017-2018.

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THE EFFECTIVENESS OF SOCIAL MEDIA IN ONLINE BUSINESS

Significance of the Study

The importance of this study is to identify the effect of social media in online business.

This study helps understand social media as a medium business, it takes a positive outcome on

performances and growth in business. Social media is important in the business. The social

media strategy is compatible with mobile devices to guarantee the user experience. Social is

important for small and growing business in advertising and market what they offer.

Hypothesis

In this research, the researchers predict that social media is the most helpful when it

comes in business. And also the social media is the easiest way to promote their business

because 90% in the Philippines use the social media.

Statement of the problem

General Question: How does online business became effective?

Supporting Question:

1. What is the well renowned online business?

2. What are the products usually sold in online?

3. What are the qualities of good sold online in terms?

A. Price

B. Convenience

C. Service

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THE EFFECTIVENESS OF SOCIAL MEDIA IN ONLINE BUSINESS

Definition of Terms

Online Business

-is any business on the internet that sells products, services or advertising online.

Social Media

-are computer-mediated technologies that facilitate the creation and sharing of

information, ideas, career interests, and other forms of expression via virtual communities and

networks.

Service

-the action of helping or doing work for someone.

Price

-the amount of money expected required or given in payment for something.

Convenience

-the state of being able to proceed with something.

Internet

-providing a variety of information and communication facilities.

Survey

-examine and record the area and features of (an area of land) so as to construct a map,

plan or description.

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THE EFFECTIVENESS OF SOCIAL MEDIA IN ONLINE BUSINESS

Facebook

-spend time using the social networking website Facebook

Respondents

-a person who replies to something.

Research

-the systematic investigation into and study of materials and sources in order to establish

facts and reach new conclusions.

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Chapter 2

Review of related literature

“Social media has now crept into the boardrooms of business organizations and just like

the internet; it has transformed the selling and buying processes. Though social media is a recent

phenomenon, it has proven to be just as effective as or even more effective than traditional

marketing.” (Erwin 2015)

According to Nair (2017) various social platforms provide insights about customers in a

smooth and economical way. The communication that takes place through social media allows

millions of people to network, interact, and promote businesses.

“When building your social media strategy for your business, it helps to learn from what

other people in your industry are saying and doing. When it comes to your social media

marketing plan, there’s no point in re-inventing the wheel. Instead, take advice from businesses

that have found success when using social.” (Torr 2015)

According to de Mooji and Hofstede (2010), social media can build and raise product

awareness since a huge number of people are already visiting social media. A product spread all

over those networks can help inform people about it, creating product awareness.

“Consumers become aware of a need or want and a possible means of satisfying it,

typically announced in an advertisement for a new brand or product. They note mentally on the

information they have at hand to evaluate the advertiser’s claims.” (Baker 2010)

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Conceptual Framework

The conceptual framework discussed the flow of the study to be taken. The study used

the systems approach. The system of three (3) frames is composed of input, which went through

the process or operation and emerged as the output.

INPUT PROCESS OUTPUT

 Data Gathering
1. Profiles
 Name through Survey Assessing the
 Grade level
 Gender Questionnaire effectiveness of
2. Most saleable product in
social media social media in
 Analysis and
 Foods
 Clothes online
Interpretation of
 Cosmetics
 Gadgets businesses.
 Appliances
Data by manual
3. Online stores most people
buy computation of

 Buy and sell on social result.


media
 OLX  Presentation,
 Lazada
 Others Interpretation and
4. What are the reasons why
people buy online? Analysis of data.

FEEDBACK

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THE EFFECTIVENESS OF SOCIAL MEDIA IN ONLINE BUSINESS

Chapter 3

Methodology

The population was consisted the high school students of Mayamot National High School

during the school year 2016-2017.

From the high school students of Mayamot National High School during the school year

2016-2017, the researchers desired to acquire 10 respondents.

Research design

The descriptive design, particularly the survey was used to achieve the objective of this

study. According to Aggarwal (2008), descriptive research is devoted to the gathering of

information about prevailing conditions or situations for the purpose of description and

interpretation. This method sought to assess the effectiveness of social media on online

businesses.

Local of the study

Researchers focus here to conduct the research at Mayamot National High School.

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Vicinity Map

Subject/ Respondents of the study

The target number was consisted of 10 respondents. The respondents of the study were

the in Senior High, aged 17 and above, of Mayamot National High School during the school year

2016-2017. All respondents using online business through social media.

Data gathering procedure

Researchers conduct the survey form questionnaire and to get their information about

online business through social media most especially in Facebook.

In this questionnaire first graph have rating that people think what is the most saleable in

social media. Foods, clothes, cosmetics, gadgets, appliances are the products that given in the

questionnaire. 5 is the highest and 1 is the lowest.

Second question is which online stores that people mostly buy the choices are buy and

sell on social media, OLX, Lazada, and others. They check it what they prefer to buy.

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Lastly the reasons why people buy online, the choices are Price, Service, and

Convenience.

Statistical Procedure

Percentage of our survey

SENIOR PERCENTAGE

M 10 25%
F 30 75%
TOTAL 40

Chapter 4

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Review and Discussion

Facebook is more effective than other social media sites in promoting businesses. One of

the reasons why facebook is more effective than other social media sites, it is because Facebook

has more users, comprising of ten million in Philippines alone. Because of facebook's features,

mass market and varied consumers, promoting items such as shoes, clothes, make ups and other

merchandise becomes more effective as well. And also Facebook Page is a page you can create

on Facebook for everything you find interesting or want to promote or represent our business,

your favorite car, your favorite food whatever you want.

MOST SALABLE PRODUCTS OR SERVICE IN SOCIAL BUSINESSES

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Products Strongly Agree Fairly Disagree Very TOTAL MEAN Adjectival

Agree Agree Disagree Rate

5 4 3 2 1
Foods 60 56 21 6 4 147 3.68 Fairly

Agree
Clothes 70 42 18 10 0 140 3.5 Fairly

Agree
Gadgets 55 48 18 18 2 141 3.53 Fairly

Agree
Appliances 20 32 48 16 7 123 3.18 Fairly

Agree
Cosmetics 40 68 18 14 2 142 3.55 Fairly

Agree

In this first table shows that foods got the highest rate in online businesses, while the

clothes got the lowest rate. As you can see that has the same “fairly agree” in adjectival rate but

it contradict in mean.

SECOND GRAPH: ONLINE STORES THAT PEOPLE MOSTLY BUY

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Chart Title
25

20

15
Series 3

10

0
Others OLX Lazada Buy and Sell

In this second graph, out of 40 respondents considered in the study, 22 respondents

choose buy and sell in social media got highest online stores that people mostly buy. Second is

Lazada got 11 respondents. Third is OLX got 5 respondents and lastly the others that people they

buy in the other online stores that did not mention in questionnaire.

REASONS WHY PEOPLE BUY ONLINE

Rate 5 4 3 2 1
Price 75 56 21 4 4 160 4
Service 45 76 21 8 1 151 3.78

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THE EFFECTIVENESS OF SOCIAL MEDIA IN ONLINE BUSINESS

Convenience 40 64 33 2 4 143 3.58

The third graph shows, price got the highest rate out of 40 respondents, 22 respondents

choose Price why people buy online. Maybe it because have a price friendly especially in

students, discounts and sales. And the lowest rate is the convenience.

Chapter 5

Summary of Finding, Conclusions and Recommendation

Summary of Finding

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THE EFFECTIVENESS OF SOCIAL MEDIA IN ONLINE BUSINESS

The purpose of the study is to know the effect of social media in online business. Using

social media in business is changing rapidly especially Facebook, Twitter, Instagram, Youtube,

blogger, Because social media helps you listen to what people are saying, including your

customers and competitors.

Base on the survey students has the highest rate who use social media in business. Those

products is trending for millennials like affordable commestics, cloathes and shoes.

The summary of this research in the first table shows that food got the highest rate, the

most saleable product in online businesses. While the clothes is the lowest rate in the online

businesses.

In the second graph shows that which online stores they think people mostly buy and the

buy and sell on social media got the highest rate in the survey and the others is the lowest maybe

because the respondents buy in the online stores that not mention in survey form.

And the last table shows there the reasons why people buy in online. The price is the

highest rate just because the customer available, have a discounts especially in the students. And

the lowest is the convenience.

Conclusions and Recommendation

The importance of this study is to identify the effect of social media in online business.

Social media is important for small and growing business in advertising and market what they

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THE EFFECTIVENESS OF SOCIAL MEDIA IN ONLINE BUSINESS

offer. The social media strategy is compatible with mobile devices to guarantee the user

experience. And also using social media as a marketing tool can help you grow your brand.

Social media can help you to become professional online entrepreneur by the help of

using some tips and strategies to achieve goals. Mobile devices can easily access in any online

networking sites especially facebook. Facebook is one of the most useful in online business. the

reason why many people can resell a product by the owner, Our generation has a knowledge in

social media most likely for millennials.

Cited works

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THE EFFECTIVENESS OF SOCIAL MEDIA IN ONLINE BUSINESS

Tianxiang S. & Chunlin L. (2010). An empirical study on the effect of e ‐service quality on

online customer satisfaction and loyalty: Nankai Business Review International.

Retrieved from http://www.emeraldinsight.com/doi/abs/10.1108/20408741011069205

Li, D., Browne, G. J. & Wetherbe, J. C. (2010). Online consumers' switching behavior: a buyer-

seller relationship perspective. Journal of Electronic Commerce in Organizations:

Hershey, 30-36,38-42. Retrieved from

https://search.proquest.com/openview/3c1347481db5aae80a2f150607fe8701/1?pq-

origsite=gscholar HYPERLINK

Guillebeu, C. (2012). The $100 Startup: Reinvent the way you make a living, do what you love,

and create a new future. New York, USA: Crown Business an imprint of the Crown

Publishing. https://www.amazon.com/100-Startup-Reinvent-Living-Create/dp/0307951529

Halvorson K. & Rach, M. (2012). Content strategy for the web, 2nd edition. California, USA:

New Riders Publishing Thousand Oaks. Retrieved from https://www.amazon.com/Content-

Strategy-Web-Kristina-Halvorson/dp/0321620062

Scott, D. M. (2015). The new rules of marketing and pr: how to use social media, online video,

mobile applications, blogs, news releases, and viral marketing to reach buyers directly.

Retrieved from https://books.google.com.ph/books?id=gi5ECgAAQBAJ HYPERLINK e

Curtis, A. (2011). The brief history of social media. Retrieved from

http://www.uncp.edu/home/acurtis/NewMedia/SocialMedia/SocialMediaHistory.html

Owyang, J. (December, 2010). Framework: the social media ROI pyramid. Retrieved from

http://www.webstrategist.com/blog/2010/12/13/framework-the-social-media-roi-pyramid/

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Crain, R. (2011). Just how influential is your social-media program if it isn't helping to sell

product? Retrieved from http://web.ebscohost.com/ehost/detail?sid=c780f38b-9780-4501-

9af5-

0c1b3436bc04%40sessionmgr4&vid=9&hid=15&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d

%3d#db=buh&AN =57395967

Rooney, J. (2011). Loyalty innovation, now an “organic” campaign. Retrieved from

Fetherstonhaugh, B. (2010). The future of selling: it’s social: Forbes. Retrieved from

http://www.forbes.com/2010/12/03/future-of-selling-leadership-sales-leadership-

ogilvyone.html

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Questionnaires

• Personal Backgrounds

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Name: Balawang, May Lanie R.

Address: #75 upper 2 Penafrancia Cupang Antipolo City

Date of Birth: May 28,2000

Place of Birth: Antipolo City

Grade Level: Grade 12-Senior High School

Civil Status: Single

• Educational Background

Senior High School: Mayamot National High School 2016-2018

Junior High School: Mayamot National High School 2012-2016

Primary: Penafrancia Elementary School 2006-20012

• Special Skills

• Microsoft Software

• PowerPoint

• Encoding

Personal Backgrounds

Name: Ereve, Angel R.

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Address: 064 Sitio Tiaong Brgy. Mayamot Antipolo City

Date of Birth: January 16,2000

Place of Birth: Amang Rodriguez Marikina City

Grade Level: Grade 12-Senior High School

Civil Status: Single

• Educational Background

Senior High School: Mayamot National High School 2016-2018

Junior High School: Mayamot National High School 2012-2016

Primary: Mayamot Elementary School 2006-20012

• Special Skills

• Microsoft software

• Excel

• PowerPoint

Personal Backgrounds

Name: Escresa, Danica C.

Address: 79 Mac Adams Road, Mayamot Antipolo City

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Date of Birth: August 23, 1999

Place of Birth: Antipolo City

Grade Level: Grade 12-Senior High School

Civil Status: Single

• Educational Background

Senior High School: Mayamot National High School 2016-2018

Junior High School: Mayamot National High School 2012-2016

Primary: Mayamot Elementary School 2006-2012

• Special Skills

• Microsoft software

• PowerPoint

• MS Publisher

• Encoding

Personal Backgrounds

Name: Miday, Johnniel S.

Address: Purok Maligaya 2 Brgy. Mambugan Antipolo City

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Date of Birth: April 06. 2000

Place of Birth: Makati city

Grade Level: Grade 12-Senior High School

Civil Status: Single

• Educational Background

Senior High School: Mayamot National High School 2016-2018

Junior High School: Fort Bonifacio Highschool 2012-2016

Primary: Immaculate Conception cathedral 2006-2001

• Special Skills

• Microsoft software

• PowerPoint

• Encoding

Personal Backgrounds

Name: Tirona, Jhenny Rose S.

Address: #143 San Juan st.Brgy Mayamot Antipolo City

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Date of Birth: December 19,1998

Place of Birth: Cavite City

Grade Level: Grade 12-Senior High School

Civil Status: Single

• Educational Background

Senior High School: Mayamot National High School 2016-2018

Junior High School: Mayamot National High School 2014-2016

Primary: Julugan Elementary School 2006-20012

• Special Skills

• Microsoft software

• PowerPoint

• Encoding

• Excel

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