College of Management

Answer Book

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 College of Management

Answer Book

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Course / Code: Consumer behaviour / EA315 / MKT222E

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 College of Management

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 College of Management

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 College of Management

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Contents
Phase2 ............................................................................................................................................. 8
Introduction ................................................................................................................................. 8
Problem statement/Purpose of the study ..................................................................................... 9
Academic ................................................................................................................................ 9
Practical................................................................................................................................... 9
Research question ..................................................................................................................... 10
Phase 3 .......................................................................................................................................... 10
Literature review ....................................................................................................................... 10
Brand equity .......................................................................................................................... 10
Entertainment ........................................................................................................................ 10
Customer relationship management .......................................................................................... 11
E-WOM..................................................................................................................................... 12
Purchase intention ..................................................................................................................... 12
Phase4 ........................................................................................................................................... 13
Theoretical framework .............................................................................................................. 13
Hypothesis................................................................................................................................. 13
Conceptual definition ................................................................................................................ 14
Conclusion .................................................................................................................................... 16
Recommendations ......................................................................................................................... 17
Phase 5 .......................................................................................................................................... 18
Content analysis (Vodafone)..................................................................................................... 18
Purchase intention ..................................................................................................................... 18
Brand equity .............................................................................................................................. 18
Entertainment ............................................................................................................................ 19
E-WOM..................................................................................................................................... 19
CRM.......................................................................................................................................... 20
References ..................................................................................................................................... 21
Appendix ....................................................................................................................................... 25
 Social Media Marketing

Phase2
Introduction
Social media has changed the way advertisers present their goods and persuade consumers
to make a buying decision. Now, businesses can communicate directly with their
customers, and customers can connect with one another through social media platforms.
Brands are starting to use social media as a medium for contact, sales, and relationships
with their customers. This two-way communication platform is ideal for exchanging ideas
and knowledge. Since it expresses what the brand is rather than attempting to manipulate
its profile, social media is thought to be more transparent with customers.

This form of interaction improves brand perception, influences loyalty, and strengthens
purchase intention (Hutter et al., 2013). Furthermore, it has been discovered that social
media has an effect on brand sales (Zhu & Zhang, 2010). In addition, Kim and Ko (2010)
Purchase Intention is also affected by Social Media Marketing Activity, according to the
findings. Yadav and Rahman (2017) in the journal measuring customer perception of social
media marketing activities in the e-commerce industry: Scale growth & validation,
conducted research on the impact of Social Media Marketing Activity on Purchase
Intention, where the results showed that Social Media Marketing Activities positively
influence Purchase Intention. SMM, especially electronic word of mouth, online
communities, and online advertising, has positive effects on brand loyalty and purchasing
intention Balakrishnan et al. (2014). SMM and consumer relationships have a substantial
and optimistic impact on customers' purchasing intention, Gautam and Sharma (2017).

According to Hutter et al. (2013), SMM on Facebook had a positive impact on brand
recognition, word of mouth, and consumer buying intention. Furthermore, Dehghani and
 Tumer (2015) discovered that Facebook advertising has a significant impact on both brand
awareness and equity, which, in turn, has a significant impact on customers' purchase
intention. According to Ng (2013), the effect of a social network group on consumer
purchasing intention is influenced by trust.

Problem statement/Purpose of the study

The purpose of this study is to study the influence of social media marketing on customer
purchase intention
And to investigate the relationship between brand equity, entertainment, customer
relationship and E-WOM on customers purchase intention

Academic
In this digital age, social media has become an integral part of daily life as a communication
channel where people share their own consumption behavior, product preferences,
opinions and experiences with other users. This study will be useful for academics and
practitioners to understand the impact of social media marketing activities, especially on
purchase intention. Based on this research, it can be concluded that current generation are
heavy users of social media and are strongly influenced by social media messages in their
buying process. Companies and businesspeople must understand the importance of social
media as an effective tool for marketing products and using the variables we explained in
their marketing strategies. .In the end this research will help future researchers to
understand demonstrated the direct effect of marketing activities on social media on
consumer buying interest.

Practical
The study suggests the companies to follow some strategies in order to get the benefit of
the study:
The Importance of going toward using The Social Media to Market the products as it
attracts a large portion of the society. The importance of focusing on social media
(Facebook, Instagram and YouTube) due to its significant impact on purchasing decisions.
Finally organizations should give due importance to social media platforms and it should
be a major portion of their overall marketing mix
Research question
1- What is the relationship between brand equity and purchase intention?
2- What is the relationship between entertainment and purchase intention?
3- What is the relationship between customer relationship and purchase intention?
4- What is the relationship between E-WOM and purchase intention?

Phase 3
Literature review
Brand equity
Brand equity is defined as a bunch of brand assets and liabilities related with the brand, its
name, image and symbol. The set of brand assets or liabilities value can be added or
deducted to give the customer or the company the needed item of service. Brand equity is
also known as the added value of a product and service which reflects the consumers needs,
wants and how the consumer think and feel as well as the consumer's pride in using a brand.
Keller (1993) defines customer-based brand equity as a form of differentiation of brand
knowledge, which results from consumer experience of that brand. Brand equity according
to Aaker [26] is divided into four types which are the brand awareness brand associations,
perceived quality and brand loyalty.
Brand Equity dimension stems from the importance of customer satisfaction with a brand
(Aaker 1991), if customers are dissatisfied, they will not be loyal and look for other brands
(Kim & Kim, 2005). Kim and Ko (2012) studied the effect of SMMA on luxury brands on
Customer Equity and found that SMMA significantly affected the value of Brand Equity.
Chae and Han (2015) report that when consumers are motivated to use hashtags on social
media, they are more likely to have a positive effect on customer participation and Brand
Equity. Firms are progressively utilizing online media stages to draw in with people, as it
is perceived that a company's web-based media movement results, for example, number of
client remarks, supporters or preferences, sway brand value.

Entertainment
Entertainment is the result of the fun and play emerging from the social media experience
(Agichtein et al., 2008). A hedonic perspective views social media user as pleasure seekers
who are being entertained and amused, and who experience enjoyment (Manthiou, Chiang,
 & Tang, 2013). Various studies present entertainment as a strong motive for social media
use (Kaye, 2007; Muntinga, Moorman, & Smit, 2011; Park, Kee, & Valenzuela, 2009). For
example, Shao (2009) finds entertainment a strong motivation for consuming user-
generated content (UGC). Park et al. (2009) mention that entertainment drives participation
in social networks to some degree.

Entertainment in social media is a significant component that induces positive emotions,

increases participating behavior, and generates intention to use continuously (Kang, 2005).
Given that social media is a space for consumers to discuss and exchange ideas, interactions
in social media offer insights into users who contribute to social media platforms with
respect to brands; these users meet and interact with one another in cyberspace and discuss
specific products and/or brands (Muntinga et al., 2011). These interactions are
fundamentally changing the dynamics of brand-customer communications, and they also
motivated the development of user-generated content (UGC) in social media (Daugherty
et al., 2008; Gallauter and Ransbotham, 2010; Kaplan and Haenlein, 2010

Customer relationship management

Customer relationship management is a way to get closer and engage with customer in a
relevant and timely manner. Social media can deliver financial benefits to companies no
matter what sector they are operating in. Social media marketing have the potential to assist
companies build and manage relationships with their customers. Companies who
understand these trends can improve their competitive position in the marketplace.

Customer relationship management and purchasing intention are positively influenced by

social media marketing. Researchers clarified that any social media operation (such as
developing customer relationship management through personalized services and free
entertainment content, and gathering genuine information on respondents' personal
interests) improves customer relationship management and purchase intention (Kim and
KO, 2010). No matter what industry a company operates in, social media may have
financial benefits.
E-WOM
Gupta and Harris (2010) believe that the development of Internet technology gave rise to
electronic WOM. Since the golden age of the modern media era, more and more consumers
send and receive messages over the Internet. E-WOM is the positive or negative statement
of a customer about the product, the future, present or past of the company, and can be
accessed by any online user (Hennig Thurau et al., 2004). When consumers want to collect
product information, they generally look for product reviews or information online before
purchasing (Jalilvand & Samiei, 2012). Baker et al. (2016) indicated that positive word of
mouth will increase purchase intention, but if the information is negative, it will have an
impact on the lack of purchase interest.

Regardless of the type of virtual community, E-WOM will have a significant impact on
purchase intentions. Zeng Guoqiang and Chen explained in their research, “E-WOM was
found to play a very important role in purchase intention. In addition, this study found that
positive E-WOM is directly proportional to purchase intention, and its impact is greater
than advertising

Purchase intention
Purchase intention is the psychological stage or decision-making process in which a
customer expresses a sincere desire to act on a product or brand (Wells et al., 2011; Doddset
al., 1991). . The probability of purchasing a brand is also known as purchase intention
(Keller, 2013). The importance of a product and the recommendation of other customers
influence a customer's buying decision. Zeithaml (1988) and Schiffman and Kanuk (2009,
chaps. 8, 9). Purchase intention increases the likelihood of a purchase; therefore, the higher the
purchase intention, the higher the chance of a purchase (Schiffman and Kanuk, 2009).
Purchasing intention is influenced by social media marketing cues. Consumers are more
likely to repurchase a product or consider new products if a company has built brand equity.
When it comes to buying purpose, buyers tend to choose a more recognizable brand over
a less familiar brand Binwani and Ho (2019).
Phase4
Theoretical framework

Brand equity

Entertainment
Purchase intention
Customer
relationship

E-WOM

Hypothesis
• H1: Brand equity will positively affect customer purchasing intentions.
• H2: entertainment and social media activities will positively affect purchasing intentions.
• H3: Customer relationship has positive significant impact on purchase intentions.
• H4: E-WOM has a positive influence on Purchase Intention
Conceptual definition
variables Definition
Brand Equity Brand Equity is defined as a set of brand assets
and liabilities associated with a brand, its name
and symbol, which add or subtract the value
given by an item or service to the company or its
customers (Aaker, 1991, p. 15). According to
Kotler and Keller (2013) Brand Equity is the
added value of a product and service, which is
reflected in what consumers think, feel and do,
as well as the consumer's pride in using a brand.

E-WOM E-WOM is a positive or negative statement

made by customers in the future, present or past
about a product or company, and can be
accessed by anyone online (Hennig Thurau et
al., 2004).
According to Hennig-Thurau et al. (2004, 39)
define online Word of Mouth as being: “ Any
positive or negative statement made by
potential, actual, or former customers about the
product or company which is made available to
a multitude of people and institutions via the
internet”
Purchase Intention (DV)
Entertainment
Customer relationship management
Intention is a behavior that motivates people to
do something (Rezvani et al., 2012). According
to Kim & Ko, (2012) Purchase Intention is a
combination of consumer interest and the
possibility of buying a product
Entertainment on social media is an important
component that gives rise to positive emotions,
enhances participatory behavior and gives rise to
the intention to use it continuously (Kang,
2005). It is also supported by Hudson and
Hudson (2006) who believe that now marketers
have designed marketing content with
entertainment content to create a strong
emotional connection between brand and
consumer
There are various definitions of CRM in the
literature. Among the most representative, we
could quote (Scott, 2001), who defines CRM as
‘‘a set of business processes and overall policies
designed to capture, retain and provide service
to customers’’, or (Injazz and Karen, 2004), for
whom CRM is ‘‘a coherent and complete set of
processes and technologies for managing
relationships with current and potential
customers and associates of the company, using
the marketing, sales and service departments,
regardless of the channel of communication’’.
Conclusion
The effects of social media marketing on customer relationships, brand equity, E-WOM, and
purchase intention were investigated in this study. The study's findings revealed that social media
marketing and customer interactions have a beneficial impact on purchase intentions. When brands
care about their customers, their purchase intention rises, and customers become emotionally
engaged with the brand. Similarly, customer awareness of the brand, satisfaction, and E-WOM all
contribute to increased purchase intentions. As a result, every activity made possible by the usage
of social media improves customer relationships, brand equity, and purchasing intention. Many
firms and enterprises have started constructing brand profiles on social media communication
channels and generating activities that will engage consumers by sharing content. E-WOM, Online
Communities, and Online Advertising are examples of online marketing communications that are
effective in promoting a brand and product through a company's website and social media
platforms. In the end there is significant effect of social media marketing on the customer purchase
intention. People tend to listen to opinions shared by friends. Similarly, the marketing on social
media platforms by companies, shape the views of people about product or service. This intention
then transforms into the actual purchase in the future. So, this is concluded that companies and
their marketers should continue using the social media platform to promote their products and
services
Recommendations
In this study, we recommend that marketers focus on social media marketing activities
(entertainment, word of mouth, and trend) individually in order to anticipate purchase intentions.
They must combine their social media marketing efforts with a focus on client connections. To
maximize long-term performance in today’s highly competitive marketing climate, consumers'
future behavior or purchase intentions are a vital strategic asset that must be studied and treasured.
Customer relationships are crucial in strengthening the tie between the customer and the brand.
Phase 5
Content analysis (Vodafone)
Vodafone Egypt is already managing the biggest brand page on Facebook in Egypt by Number of
local fans, Egyptian fans out of total fans in September 2013 and ranked no. 9 in the Top 10
Facebook Telco Brands by number of fans worldwide. Vodafone Egypt proves a big brand can
master Facebook with 4.5 million Facebook likes; Vodafone Egypt has the largest presence on
Facebook in the Middle East.

Purchase intention
Vodafone sees that excellent customer service means higher sales, helps build a relationship
between you and your customers, and increases trust and awareness of your brand. Companies
spend a lot of money to get one customer, while keeping them costs less money, and this role is
played by customer service alone. By ensuring that they are kept happy and satisfied, improving
customer service not only enhances your brand, it makes customers happier, builds a good
company reputation, recommend Vodafone to their friends, and gets you people to fight back in
your absence. This factors positively influences purchase intention.

Brand equity
Vodafone Egypt has grown over the years to become the leading mobile operator in Egypt, not
only in revenue share but also to become the number 1 mobile operator in Egypt with the largest
customer base. Vodafone proudly serves more than 36.3 million customers offering the most
advanced technology for its customers, the best working environment for its 6,500 employees and
the strongest corporate responsibility initiatives for the community. Just like Mo Salah, Vodafone
is a star of its own. The international telecommunications company has operations in over 30
countries, including Ghana, South Africa and Egypt. With over 439 million subscribers, it is the
second largest network in the world, only second to China’s leading telecom, China Mobile. .One
of the toughest aspects of building a successful brand is building an emotional connection with
consumers and Mohammed Salah was chosen by Vodafone Egypt as an example to achieve
ambitions and to work towards a stronger and better future.
Entertainment
Amr Diab’s partnership with Vodafone Egypt started four months ago, allowing fans to subscribe
to an SMS service – Amr Diab World – that provides exclusive news, songs, and more content
from the superstar Amr Diab. Sherihan's announcement: Dealing with Vodafone's sponsorship has
affected people in a positive way. sponsorship has affected people in a positive way.

E-WOM

Vodafone has a Strong online presence on different social networking sites and efficient
social media management can enhance the effect of positive e-WOM and develop strong
relationships with customers. Their well-developed and efficiently integrated IT
infrastructure can improve the operational efficiency, increase knowledge of the latest
market trends for example Vodafone’s campaign in 2018 with MO salah had a significant
impact on people reviews on the social media. People were considering changing to
Vodafone after this ad; it also had a positive impact on customers’ reviews inside and
outside of Egypt (as shown in the 2 pictures below). They make sure that every statement
is positive to improve customer purchase intention.
CRM
• Vodafone’s ability to chart out an average life cycle allows it to market different services. It
prospects aggressively through advertising.
• 2nd stage combines provisioning and verification. Vodafone activates a customer’s account and
makes a first rating of the customer based on the application.
• Vodafone’s well planned welcome process includes a call informing clients of the Vodafone help
line & various value added services. At the end of this stage their first bill is generated.
• The first collection marks the start of up-selling and cross selling. Analytical module steps in,
CRM has to make every attempt count since clients can only be approached only a fixed number
of times.
• This stage may see a client wishing to leave. To keep churn down, Vodafone uses retention
policies and loyalty processes to bring clients back to the fold. Many clients are won back.
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Appendix
https://www.sciencedirect.com/science/article/pii/S0969698918307604
https://jbrmr.com/cdn/article_file/2019-07-02-18-53-41-PM.pdf
https://www.academia.edu/download/58795838/jurnal_inggris_dzul_2.pdf
https://copify.ir/wp-content/uploads/2018/01/2018-20.pdf
Impact of social media activity outcomes on brand equity | Emerald Insight
*Effect of social media marketing on Instagram towards purchase intention.pdf
Microsoft Word - AW-ICMITSGPR-20125-684 (worldresearchlibrary.org)
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https://www.inderscienceonline.com/doi/abs/10.1504/IJBIS.2018.091861
https://www.koreascience.or.kr/article/JAKO202029565519176.page