WISCONSIN INTERNATIONAL UNIVERSITY COLLEGE

THE IMPACT OF SOCIAL MEDIA ON TRADITIONAL

RETAILERS.
(A CASE STUDY OF RETAILERS IN THE AYAWASO WEST WOUGON)

EDO EMMANUEL

2022
WISCONSIN INTERNATIONAL UNIVERSITY COLLEGE

THE IMPACT OF SOCIAL MEDIA ON

TRADITIONAL RETAILERS.
(A CASE STUDY OF RETAILERS IN THE AYAWASO WEST WOUGON)

BY
EDO EMMANUEL

(WIUC/04/2097)

A Project submitted to the Department of Business Computing of the School of Computing

and Technology, Wisconsin International University College, in partial fulfilment of the
requirements for the award of Bachelor of Science Degree in Management with Computer
Studies.

JUNE, 2022

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 STUDENTS’ DECLARATION

I hereby do declare that this project work is my own original piece of work prepared in

accordance with the rules and regulations governing the writing and presentation of long

essay at Wisconsin University College Ghana, and that it has not been presented in part or

full as a research work in any institution. I duly take full responsibilities for any errors in our

work.

Candidate’s Signature: ………………. Date: ………………...

Name: Edo Emmanuel

Supervisor’s Declaration

I hereby declare that the preparation and presentation of the dissertation were supervised in

accordance with the guidelines on supervision of long essay laid down by the Wisconsin

University College Ghana.

Supervisor’s Signature: ………………. Date: ………………...

Name: Mrs. Nora Agyei-Ababio

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 ACKNOWLEDGEMENTS

I cannot express enough thanks to the Almighty God, for his blessings throughout the

research work to complete the project successfully.

Completion of this project could not have been accomplished without the guidance and

support of my supervisor, Mrs. Nora Agyei-Ababio to whom i express my sincere gratitude

for her patience in supervising this project.

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 DEDICATION

I dedicate this project to my beloved late mother, Mrs Felicia Asio.

May her perfect soul rest in Peace

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 ABSTRACT

There has been a paradigm shift in the business arena after the introduction of the internet and

this has ushered businesses into the new digital environment. Hence, some of the old

structures of business organizations have been challenged and their concepts revisited and

revised. In view of this, the study aimed at assessing the impact of social media on traditional

retailers in the Ayawaso West Wougon. The researchers used the descriptive research design

and research was conducted by the use of the quantitative method. The study sampled 100

retailers within the Ayawaso West Wougon municipality for the study. The researchers used

Statistical Package for the Social Sciences (SPSS) tool in analysing the quantitative data

collected. A descriptive analysis was conducted and the findings showed that some retailers

have a positive perception of social media while a few others perceived it to be negative.

Further analysis showed that majority of the traditional retailers prefer to augment social

media into their traditional retailing business and some of the factors that influence this

choice include, cost-saving, globalization, access to a wide range of markets, etc. Finally, the

correlational analysis indicates that social media has positive impact on traditional retail

businesses’ profit, sales, market share and customer relationship. In view of this, it was

recommended that traditional business owners should augment social media into their

business to stay relevant in the internet age as more businesses as well as consumers are

going virtual.

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 TABLE OF CONTENTS

STUDENTS’ DECLARATION.............................................................................................iii
Supervisor’s Declaration.......................................................................................................iii
ACKNOWLEDGEMENTS....................................................................................................iv
DEDICATION..........................................................................................................................v
ABSTRACT.............................................................................................................................vi
LIST OF TABLES...................................................................................................................x
LIST OF FIGURES................................................................................................................xi
CHAPTER ONE: INTRODUCTION....................................................................................1
1.1 Background of the Study......................................................................................................1
1.2 Statement of the Problem.....................................................................................................3
1.3 Purpose of the Study............................................................................................................4
1.4 Objectives of the Study........................................................................................................4
1.5 Research Questions..............................................................................................................4
1.6 Significance of the Study.....................................................................................................5
1.7 Scope of the Study...............................................................................................................5
1.8 Limitations of the Study.......................................................................................................6
1.9 Organization of the Study....................................................................................................6

CHAPTER TWO: LITERATURE REVIEW.......................................................................8

2.1 Introduction..........................................................................................................................8
2.2 The Paradigm Shift of the World Wide Web.......................................................................8
2.2.1 Defining of Social Media Development......................................................................10
2.2.2 Use of Social Media and Its Features..........................................................................11
2.3 Advantages of using social media......................................................................................13
2.3.1. Cost-related............................................................................................................13
2.3.2 Social Interaction...................................................................................................13
2.3.3 Interactivity............................................................................................................14
2.3.4 Targeted market.....................................................................................................14
2.4 Disadvantages of Adopting Social Media for Business.....................................................15
2.4.1 Time intensive........................................................................................................15
2.4.2 Trademark and Copyright Issues...........................................................................16
2.4.3 Trust, Privacy and Security Issues.........................................................................16

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 2.4.4 Negative Feedbacks...............................................................................................17
2.5 Theoretical Review............................................................................................................18
2.5.1 Social capital theory....................................................................................................18
2.5.2 Diffusion of Innovation Model.....................................................................................20
2.5.2.1 Relative advantage................................................................................................22
2.5.2.2 Compatibility........................................................................................................22
2.5.2.3 Complexity............................................................................................................22
2.5.2.4 Trialability............................................................................................................23
2.5.2.5 Observability.........................................................................................................23
2.5.3 Technology Acceptance Model (TAM)......................................................................23
2.5.3.1 Perceived Usefulness............................................................................................25
2.5.3.2 Perceived Ease of Use...........................................................................................26
2.6 Empirical Review...............................................................................................................27
2.7 Conclusion .........................................................................................................................30

CHAPTER THREE: METHODOLOGY............................................................................31

3.1 Introduction........................................................................................................................31
3.2 Research Design.................................................................................................................31
3.3 Research Population...........................................................................................................32
3.4 Sampling Technique...........................................................................................................32
3.5 Sample Size........................................................................................................................33
3.6 Data Collection and Instrumentation.................................................................................33
3.8 Data Analysis.....................................................................................................................34
3.9 Conclusion .........................................................................................................................34
4.1 Introduction........................................................................................................................36
4.2 Socio-Demographic Characteristics of Respondents.........................................................36
4.2.1 Gender.........................................................................................................................36
4.2.2 Age..............................................................................................................................37
4.2.3 Educational Background.............................................................................................37
4.2.4 Position held by Respondents......................................................................................38
4.2.5 Years of Operation......................................................................................................39
4.3 Perception of Retailers on the Use of Social Media..........................................................39
4.4 Choice and factors influencing the choice of Business......................................................41
4.5 Popular social media Known and Used by Retailers.........................................................43
4.6 Impact of social media on Traditional Retailers’ Operation..............................................46

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4.7 Conclusion..........................................................................................................................48

CHAPTER FIVE: SUMMARY, CONCLUSION, AND RECOMMENDATIONS........49

5.1 Introduction........................................................................................................................49
5.2 Summary............................................................................................................................49
5.3 Conclusion..........................................................................................................................51
5.4 Recommendations of the Study.........................................................................................51
5.5 Limitation of the Study and Areas for Further Research...................................................52
REFERENCES.......................................................................................................................53
APPENDIX: QUESTIONNAIRE SAMPLE.......................................................................59

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 LIST OF TABLES

Table 4.1. Gender of Respondents ……………………………………………………………

36

Table 4.2. Age of Respondents

……………………………………………………………….37

Table 4.3 Educational Qualification

………………………………………………………….38

Table 4. 4 Position of Respondents

…………………………………………………………..38

Table 4.5 Years of Operating Traditional business

…………………………………………..39

Table 4.7 Perception of Traditional Retailers on Social media ……………………………...40

Table 4.8 Preference for the Type of Business ……………………………………………...41

Table 4.9. Factors Influencing the Choice of social media ………………………………….41

Table 4.10. Frequency of using social media ……………………………………………….45

Table 4.11 Pearson Correlation ……………………………………………………………..47

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 LIST OF FIGURES

Figure 2.1. Social media platforms used worldwide in 2021 …………………………………

12

Figure 2.2. Diffusion of Innovation

…………………………………………………………..21

Figure 4.1. Popular social media Known among Retailers ………………………………….43

Figure 4.2. The Popular social media Used by Traditional Retailers ……………………….44

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 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Traditional business model (also known as Brick and mortar) is the common term used to

reference a retailer or business that operates a minimum of one physical location. It

references the material used to construct a physical location, although, of course, not all

physical locations are actually built using bricks and mortar. This type of business is greatly

operated across the world and it has thrived over the years. For example, Gitaru (2017)

revealed that 92% of businesses across numerous sectors and business sizes operated in

Ghana adopt the brick-and-mortar model. The positive contribution of traditional retail

businesses across the world is believed to be related to their characteristic features; their

small size enables them to be operationally and strategically flexible, which provides them

with the capability of taking advantage of new opportunities (Zhang & Morrison, 2017).

Nonetheless, there has been a paradigm shift in the business arena after the introduction of

internet and this has ushered businesses into the new digital environment. Hence, some of the

old structures of business organizations have been challenged and their concepts revisited and

revised (Pavic, 2010). The forces driving these changes are those that occurred in the 1990s

when, together with the Internet, fragmentation of the market initiated a flexible response to

customer expectations creating an open innovative network (Pavic, 2010).

Open innovation networks, which involve a diverse set of partners, have been known to be

essential for the sustainable development of new products and services in organizations

(Rehm et al., 2015; Chesbrough et al., 2013), and therefore have been a topic of interest

among researchers during the recent years. Information systems, and in particular social

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media platforms play a significant role in empowering such networks throughout the open

innovation process (Rehm et al., 2015). Social media platforms allow firms to create online

communities where users engage in collaborative approaches to create value by submitting

product reviews, providing feedback, generating ideas, suggesting new solutions to problems,

and identifying new sources of innovation (Di Gangi et al., 2010).

According to the McCay-Peet and Quan-Haase (2017), social media can be defined as web-

based services that allow individuals, communities and organizations to collaborate, connect,

interact, and build community by enabling them to create, co-create, modifies, share, and

engage with user-generated content that is easily accessible. Examples include; Facebook,

WhatsApp, Twitter, Instagram, YouTube, etc. Though social media started as a platform for

individuals to share photos with their friends and family, social media has evolved to become

much more impactful, especially for businesses. Social media has become a key component

of organizations marketing strategies and for good reasons, 74% of shoppers make buying

decisions based on social media. This shift isn’t specific to B2C, also, B2B is benefiting from

social media’s purchasing influence too (Baker, 2017). Previous studies have revealed how

social media influence consumer behavior (Van-der-Heiden, Tibert, & Marcel, 2003; Kotler,

2012), profitability (Gupta, 2011), sales performance (Rodriguez, Peterson & Krishnan,

2012), and innovation (Burgess et al., 2014; Kane, 2014, Chesbrough et al., 2013). The

findings of Rodriguez et al. (2012) support that social media has a positive relationship with

sales processes (creating opportunities and relationship management) and relationship sales

performance. According to Kotler (2012), consumer buying behavior can be influenced by

reviews on social media, and PwC’ (2016) total retail survey revealed that 45% of global

respondents said that reading reviews, comments, and feedback influences their shopping

behavior.

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Although most literature has focused on large firms, the academic literature also suggests that

small and medium-sized enterprises (SMEs) that operate trade using the traditional business

model can reap significant benefits if they use social media to collaborate with their external

partners, suppliers, customers, and other stakeholders, and to engage in open innovation

activities with them, perhaps because they lack sufficient resources such as time, budget, and

expertise, to innovate on their own (Rehm et al., 2015). These benefits can be the co-creation

of new solutions, increased efficiency saving and economies of scale, improved metadata

(knowledge of who knows what and who knows whom), and enhanced individual and

organizational learning. In view of this, the study aims at assessing the impact social media

has on traditional retail businesses.

1.2 Statement of the Problem

As of January 2021, Ghana registered approximately 16 million internet users, up from 14.76

million reported in the year before. The percentage of the population using the internet has

been increasing rapidly in the West African country (Sasu, 2021). Sasu (2021) further noted

that out of the 14.76 million users of the internet in 2020, 83.9% of them uses WhatsApp,

71% and 69.7% uses YouTube. Statista (2021) further noted that the number of registered

social media users has been rapidly increasing in the West African country. However, due to

the negative perception held by most retailers operating tradition businesses and the SME

sector at large had limited the presence of these retailers on the social media and the internet

at large (2014). As per Martins et al, (20111) most fraudsters operate on the internet now so

it’s not safe, and there is higher risk as a result of distance, virtual identity, and lack of trust in

the of regulation and response to customer’s problems in real-time is limited. In view of the

above, these retailers prefer stick to the traditional way of trading thereby failing to adapt to

the new era of business and take advantage of it.

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Previous research on internet adoption among SMEs in more developed economies provides

a guide to thinking about social media adoption by SMEs in Ghana. For example, it has been

found that owner/managers play a central role in SMEs, and the level of ICT adoption is

closely linked to the skills and attitudes of owner/managers (Martin & Matlay, 2011). Martin

(2014) stressed that owner/manager’s motivation and ability to develop tacit knowledge (i.e.,

know-how) were firmly associated with organizational success. Nonetheless, Shang (2014)

revealed that the diversity in socio-cultural factors and managers attitude have led to varying

and inconsistent findings on the adoption of social media by traditional firms and its impact

on these businesses. Therefore, it imperative to undertake studies in this regard across various

demographics and sectors to assess the impact of social media adoption and use on

businesses.

1.3 Purpose of the Study

The study aims to examine the impact of social media on traditional retailers in the Ayawaso

West Wougon Municipality. This was meant to uncover how social media affect the sales

revenue and the overall performance of these retail shops.

1.4 Objectives of the Study

i. To assess the perception of retailers on the use of social media in the Ayawaso West

Wougon Municipality.

ii. To assess the most popular social media known and used by retailers in the Ayawaso

West Wougon Municipality.

iii. To assess how frequent retailers in the Ayawaso West Wougon Municipality use

social media as a tool.

iv. To examine the impact of social media on traditional retailers’ operation.

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1.5 Research Questions

i. What is the perception held by retailers on the use of social media in the Ayawaso

West Wougon Municipality?

ii. What is the most popular social media known and used by retailers in the Ayawaso

West Wougon Municipality?

iii. How frequent do retailers in the Ayawaso West Wougon Municipality use social

media as a tool?

iv. What is the impact of social media on traditional retailer’s operation?

1.6 Significance of the Study

Social media has come a long way in influencing consumers in so many ways without their

knowledge in terms of what they purchase and it has made it very convenient for businesses

to communicate their products and services at a low price. The significance of the study is

that it will serve as a source of evidence for organizations to help them know how powerful

social media is in influencing customers to make a purchase, improving retailers’ sales

revenue and how they can utilize it to influence the buying behaviour of their customers.

The study will help industry players to understand the paradigm shift in the business arena

into the digital age and how best they can augment social media with their traditional

business operations to stay relevant and adapt to the changing environment. It will also help

managers as decision-makers to know how best they can adopt social media as a strategic

tool.

Also, this research essentially adds up to the literature and the research stream of developing

countries. It can become an academic and corporate reference point for further study and

policy formulation respectively.

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1.7 Scope of the Study

The study was geared towards the retailing activities and traditional retail shops and it was

constrained to the effect of social media on the profitability and general business performance

using consumer behavior as mediating variable. The study, therefore, focused on the retailer's

manufactured products out of the entire traditional business owners of the Ayawaso West

Wougon municipality which according to the 2021 population census, it is 72% of the entire

class of businesses in the municipality.

1.8 Limitations of the Study

The quantitative research method was selected for the study; this, therefore, restricts the

respondents on their responses since close-ended questionnaires were used to collect the data.

Also, another factor that will limit the generalization of the study finding is the geographical

coverage; thus, the number of cases selected for the study. Nonetheless, the adoption of the

mixed or longitudinal research method as well as increasing the period of carrying out the

study would have helped to address these issues.

Also, the work schedules of retailers and the frequent interruption due to make it nearly

impossible to easily collect data from the participants who were chosen for the study.

Although break hours and arrangements were made with these retailers, it will be difficult to

get quality time with the respondents to properly respond to the questionnaires.

Undertaking extensive research to cover different classes of firms will enrich the study,

however, lack of finances besides time makes it impossible to expand its scope.

1.9 Organization of the Study

The study is organized into five chapters. The chapter one discusses the research backdrop,

the problem that the study would have to be addressed, the questions required to be answered,

and the importance of the research and the scope of the study.

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The chapter two focuses on key literature on social media, traditional business, the impact of

social media on traditional businesses and the relationships that exist between these

constructs. The dissertation further covers the theoretical and empirical study framework.

The study technique is also discussed in the third chapter. Thus, the third chapter specifically

discussed the design of the study, the target population, the sample size, the sampling

method, the data acquisition, and the data gathering instrument as well as the data analysis

procedure.

The examination of the data acquired and the data analysis are discussed in Chapter Four of

this study. The analysis is further discussed in relation to the literature reviewed in the study’s

Chapter two.

Chapter five which is the concluding chapter focuses on the summary, suggestions, and study

findings. Consequently, future study recommendations are dealt with in this chapter.

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 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This section of the study discusses the literatures on social media by looking at the paradigm

shift in technology, define social, and discuss the advantages and disadvantages of adopting

and using social media. It further discussed the theoretical underpinnings of the study and

review empirical studies relating to social media and its impact on retailing traditional

businesses.

2.2 The Paradigm Shift of the World Wide Web

The emergence of the internet and the World Wide Web has changed society forever. When

the first-generation internet (Web 1.0) first became available to the public in the early 90’s it

was a web of limited information about goods and services (Wertime & Fenwick, 2008). The

users of Web 1.0 are best described as “consumers of content” because they had limited

access to information and were only publishers rather than participants (Allen, 2013). That

soon changed with the introduction of Web 2.0 in 1999 which enabled users to become

content creators and active participants (Allen, 2013). Web 2.0 changed the world by

enabling communication across country borders and time zones. It introduced immediate

access to limitless information and knowledge and changed the way people lived their lives,

how companies do business and sell their products and services, and transformed social

8
norms. Soon so-called social media emerged, revolutionizing human interaction through

technology.

Berthon, Pitt, Plangger, and Sharpio (2012) argue that the Web 2.0 technologies have caused

three irreversible changes in the company/consumer relationship. First, it shifted people’s

activity from the desktop to the web, which lead to greater and immediate accessibility of

information. Second, the possibilities of Web 2.0 gave rise to social media, which shifted the

value creation from the company to the consumer. Thirdly, these factors empowered

consumers like never before as power once belonging to the company transcendent into the

hands of consumers around the world (Berthon et al., 2012). The empowered consumer does

not only use and consume products and services, but rather adapts and transforms previously

standardized offerings to his/her demand (Berthon et al., 2012). The emergence of social

media facilitated limitless communication between individuals and applied technology to

bring about more interactive interaction between individuals and organizations. Suddenly,

people could consult with each other on different brands, products, and service experiences as

well as simply convey their own opinion.

The internet and social media have grabbed the attention of people of all ages, gender, social

position, and professions. Although the age gap between internet users is becoming smaller

(Kannenberg, 2017) the “digital natives” were the ones that changed the traditional marketing

perspectives. Millennials are considered to be digital natives although it is a generation born

before the internet. However, millennials were teenagers or young adults when the internet

emerged and are therefore digitally savvy and have adapted to the web and its prospects

(Ryan, 2014). So-called Generation Z came after the Millennials and represents the youngest

generation today. These individuals were born into the digital age and are living their lives

fully integrated with social media powered by information technology. These two generations

have a different mind-set toward business-to-consumer communications (B2C) and

9
traditional marketing (Ehlers, 2017). They grew up with social media and the vast access to

information at their fingertips, creating a new generation of informed consumers who are

highly selective about the content they are exposed to (Kannenberg, 2017). Consumers who

easily search for product and service information and freely share their opinions with others

operating beyond the control of manufacturers or service providers. Social media has armed

customers with the ability to damage or benefit companies (Kietzmann, Hermkens,

McCarthy, & Silvestre, 2011) and their products and services, transforming how companies

view customer engagement and value creation (Kumar et al., 2010). Channels such as

Facebook, YouTube, and Twitter etc. have created a platform for consumers to express

themselves openly and given companies free access to customer feedback enabling them to

leverage customer feedback and act on customer wishes. Hence, dramatically change go-to-

market strategies, product development, and promotional activities in today’s marketplace.

2.2.1 Defining of Social Media Development

Arman (2014) highlights several definitions of social media, therefore, defining four different

social media perspectives. First, the Technological Perspective maintains that social media

constitutes a combination of mobile and web-based technologies. In other words, Web 2.0

technologies generated internet-based applications that represent social media functions.

This is the scientific approach that only defines the general function of social media. Second,

General User Perspective explains further the concept of social media and sheds some light

on the difference between traditional media and social media. This perspective explains how

social media allows its’ users to participate in content creation and development, unlike the

traditional media where users were only consumers of the content. Social media enables its’

users to communicate, network, share and interact with each other about their own

perceptions, opinions, experiences, and perspectives. The third perspective is the Information

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and Communication Related to Business Perspective which is similar to the general user

perspective.

However, its’ focal point is on how organizations use social media to their advantage by

gathering information and communicating with customers. The fourth and final perspective

defined by Arman (2014) is the Marketing Perspective which views social media as a new

marketing tool that is both cost and time-effective. It claims that social media is an important

factor for revenue growth and brand promotion and extension. The Marketing Perspective

also outlines that social media is an effective channel to communicate with consumers which

makes it a fundamental part of business strategy. But what do social media consist of and

what is its function and value for individual users? Mayfield (2018) perceived social media as

a new type of media with five different applications: 1) Participation, 2) Openness, 3)

Conversation, 4) Community, and 5) Connectedness. Participation is key as social media

endorses user engagement, fading the line between media and audience. Because of its active

participation, social media services can be accessed by everyone who wants to make use of

its content. The conversation is what social media is all about as it established two-way

communication between the content provider and the reader/user. With active engagement

and interaction, social media quickly creates communities of similar interests and

perspectives where users can communicate easily and successfully. Last, but not least,

Connectedness is what social media thrives on and what Web 2.0, the foundation of early

social media, has enabled with social networking (Mayfield, 2008; Wertime & Fenwick,

2008). Social media connects not only websites and resources, but also people.

2.2.2 Use of Social Media and Its Features

A study carried out by the Statista Research team in 2021 showed that with the increasing

popularity of social media, it is more than evident that the most popular social media platform

used widely by businesses as a communication tool is Facebook. This is followed by

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Instagram, LinkedIn, Youtube, and Twitter (see figure 2.1) (Statista, 2021). This type of

communication can take place with a single individual or with a group of people (Daowd et

al., 2020).

Over the past few years, social media marketing has become one of the most popular and

successful forms of digital marketing. Thanks to the massive userbases of networks like

Facebook and Instagram, advertisers can reach billions of potential customers at the click of a

mouse. Among the many benefits of using social media platforms for business purposes,

industry professionals particularly value the increased exposure for their brands and products,

as well as the increased traffic on their websites (Statista, 2021).

Figure 2.1. Social media platforms used worldwide in 2021

Source: Statista, 2021

Facebook remains the most important social media platform for many marketers. With an

active user count of close to 2.8 billion, Facebook is the most popular social network

12
worldwide (Daowd et al., 2020). Therefore, the market leader also remains the most

important social media platform among marketers on the B2B and B2C spectrum. However,

as the social media landscape is quickly evolving and new players are fighting for attention

from audiences and marketers alike, Facebook is facing increasing competition (Daowd et al.,

2020). With Instagram and YouTube gaining momentum, many advertisers are planning to

reduce their activity on Facebook in the future (Statista, 2021). However, according to

Mammen and Bhakat, (2020) WhatsApp is one of the social media platforms which is

commonly used by everyone. For the effective presence of retailers, WhatsApp is very

helpful.

2.3 Advantages of using social media

According to Watson et al. (2002) cited by Sheth and Sharma (2005) with the popularity of

digital marketing on the rise, many businesses are investigating how social media can help

them promote their products and services to potential and existing customers. Social

networking sites like Facebook and Twitter have transformed the way some businesses think

about advertising. Some businesses direct customers toward their social network pages more

than they direct them to their own websites. There are certain advantages to marketing via

social media, but there are also related drawbacks as well (Watson et al. 2002; Sheth &

Sharma 2005).

The primary advantages of adopting and using social media marketing are discussed in the

subsections below.

2.3.1. Cost-related

According to Weinberg (2009), the main advantage of social media marketing is cost-related.

The financial barriers to social media marketing are quite low compared to others. The

majority of social media sites are free to access, create profiles and post information.

13
Whereas traditional marketing campaigns can cost millions of dollars, many social media

tools are free even for business use. Businesses can run highly successful social media

marketing campaigns on a limited budget. The advantage of reaching your targeted market

for little or no cash investment is substantial, and the audience wanting your information

voluntarily joins or follows you.

2.3.2 Social Interaction

One of the most notable phenomena of new media is how it has increased and created new

forms of social interaction. People spend more than a quarter of their time online involved in

communication activities (e.g., emails, IM chat, and social networks), which is equivalent to

the total time spent online for general leisure and entertainment (Hill & Moran, 2011). Social

networking sites have become so pervasive that they are the most popular Internet

destinations (Burmaster, 2009). Not only has new media demonstrably altered how often

people communicate online, but it has also enlarged the pool of individuals they

communicate with and led to new ways for behaviors to be influenced (Burmaster, 2009).

Consumer behavior studies reveal that individuals give greater consideration to advice and

information shared online, spending more time with websites that provide third-party

evaluations (Huang et al. 2009), and other studies indicate such information can directly

influence buying decisions, even if received purely ‘virtual’ sources (Hafele, 2011). Indeed,

many of the reported benefits of new media usage (increased reputation, anticipated

reciprocity) relate directly to its social interaction aspects (Hafele, 2011).

2.3.3 Interactivity

As observed by Hill and Moran (2011) unlike watching TV or listening to the radio, the

interactivity of new media lets consumers become more than just passive recipients of

stimulation. Interactivity can be broadly described as the extent to which users participate in

14
modifying the form and content of a mediated environment in real time (Steuer, 1992).

Interactivity is one of the defining characteristics of new media technologies, giving greater

access to information as well as supporting increased user control of and engagement with

social media content (Hill & Moran, 2011). Studies show that increased levels of

interactivity can lead to higher involvement (Bucy, 2003) and more positive attitudes toward

websites along with higher source credibility (Fogg, 2003; Hill & Moran, 2011).

2.3.4 Targeted market

Social media provide marketers with the ability to target audiences and consumers based on

site users' personal interests and what their friends like. For example, list country music as

one of your interests on a social networking site; you will most likely be seeing ads about

country music concerts and artists. Some sites' advertising will also highlight which country

artists your friends like to provide a personal connection. With such "smart" marketing and

advertising, marketers effectively reach the people who are most interested in what they have

to offer. Furthermore, social networking enables word of mouth to promote products beyond

what advertising alone does (Hill, Provost, & Volinsky, 2006).

2.3.5 Customer Service

Customer service is another crucial area for social media marketing (Helmsley, 2000).

Sometimes website designers cannot avoid a certain degree of complexity in the architecture

of a website. Therefore, it is necessary to have a thoughtful customer service system. Links to

Frequently Asked Questions (FAQs) and links to online representatives are useful in order to

assist customers in the selection or buying process. A marketer should not just offer online

assistance. In many cases, it is more convenient for customers to call a company. Therefore,

the use of a toll-free phone number for customers should be considered (Gommans et al.,

2001).

15
2.4 Disadvantages of Adopting Social Media for Business

The online environment creates not only opportunities, but also complications and challenges

for the social media marketing process. The transparency of the web makes online

information available to all audiences, and reinforces the need for consistency in the

planning, design, implementation and control of online marketing communication (Hart et al.,

2000). There are five main disadvantages need to be considered on social media marketing,

which are:

2.4.1 Time intensive

As the name implies, social media is interactive, and successful, two-way exchanges take

commitment. The nature of marketing changes in social networks, with the focus placed on

establishing long-term relationships that can turn into more sales. Somebody has to be

responsible to monitor each network, respond to comments, answer questions and post

product information the customer deems valuable (Barefoot & Szabo, 2010). Businesses

without a service to manage these social networks will find it difficult to compete. The first

preliminary consideration and probably the most important one is that social media marketing

requires a significant time investment (Barefoot & Szabo, 2010). As a general rule, simply

dabbling in a few social media resources and hoping to realize enormous returns is fanciful.

A company must realize the necessary time commitment and either accept or reject that

commitment as plausible for its operation (Barefoot & Szaboo, 2010).

2.4.2 Trademark and Copyright Issues

According to Steinman and Hawkins (2010), it is of the utmost importance for companies to

protect their own trademarks and copyrights when using social media to promote their brands

and products. A company’s brands and other intellectual property are often nearly as valuable

as the products or services that they offer. Social media’s capacity to facilitate informal and

16
impromptu communication often on a real-time basis can aid companies in promoting their

brands and disseminating copyrighted material, but it can also facilitate third-party abuse of a

business’ trademarks and copyrights (Steinman & Hawkins, 2010).

2.4.3 Trust, Privacy and Security Issues

Using social media to promote one’s brand, products, or services can also implicate trust,

privacy and data security issues. It is important for companies to aware of these issues and

takes appropriate measures to minimize their exposure to liability related to personal data

collection, use, and maintenance.

Trust, particularly the unique dimensions of transactional security and privacy (Hoffmann et

al., 1999), play a critical role in generating customer loyalty to social media marketers. A

study by Ratnasingham (1998) has shown that fear of online credit card fraud has been one of

the major reasons customers have not done more extensive online buying (Ratnasigham,

1998). Moreover, privacy concerns have led to a public relations fiasco for some major social

media marketing resulting in substantial brand image erosion (Advertising Age, 2000). Social

media companies like Facebook and Twitter generally have their own privacy policies that

govern their use of consumer data and third-party conduct on the social media platform with

respect to personal data. Marketers using third-party social media outlets should ensure that

their marketing campaigns do not encourage consumers or any other parties to engage in

practices that would violate the social media company’s privacy policy, and marketers should

also ensure that they are abiding by the policies as well. Companies that administer their own

blogs or other social media platforms should also maintain comprehensive policies that

disclose the company’s data collection, use, and storage practices, and any responsibilities

that third parties have regarding privacy and data security (Steinman & Hawkins, 2010).

17
Trust, which is closely related to security, is a very important factor in the online buying

process behavior process. In general, you cannot feel, smell, or touch the product. You cannot

look into the salesperson’s eyes (Steinman & Hawkins, 2010). Therefore, these ways of

developing trust are excluded on the Internet. Brand trust usually contributes to a reduction of

uncertainty. In addition, trust is a component of the attitudinal component of loyalty. So, it is

obvious that loyalty in general and brand trust in particular can help to overcome some of the

Internet’s disadvantages, e.g., to overcome perceptions that the Internet is an unsafe,

dishonest, and unreliable marketplace. In fact, these perceptions are still stopping some

potential customers from doing business on the web. A “third party approval” is a tool to

generate trust (Gommans et al. 2001).

2.4.4 Negative Feedbacks

Social media, in a way, converts consumers into marketers and advertisers, and consumers

can create positive or negative pressure for the company, its products, and its services,

depending both on how the company is presented online and on the quality of products and

services presented to the customer (Roberts & Kraynak 2008). Consumer-generated product

reviews, images, and tags, which serve as a valuable source of information for customers

making product choices online (Ghose, Ipeirotis, & Li 2009), have increased rapidly on the

Internet and have had a great impact on electronic commerce (Forman, Ghose, & Wiesenfeld

2008) following the emergence of Web 2.0 technologies.

One aspect of social networking that is especially damaging to marketing campaigns is

negative post responses. Unhappy customers or industry competitors are able to post

disparaging or offensive pictures, posts, or videos and there is not much a marketer can do to

prevent these occurrences (Cheung, Lee, & Thadani 2009). Still, negative or other non-

constructive feedback cannot be ignored. Social networks must be managed efficiently

18
enough to immediately respond to and neutralize harmful posts, which takes more time

(Hennig-Thurau et al. 2004)

2.5 Theoretical Review

The theoretical underpinnings of this study include the social capital theory, the Diffusion of

Innovation Model, and the Technology Acceptance Model (TAM). These theories were

discussed in this section.

2.5.1 Social capital theory

The social capital theory provides a foundation for understanding the impact and importance

of social media for organizations. The social capital theory is a sociological concept that

refers to connections within and between social networks (Lin 2001). This framework helps

understand how human interaction creates opportunities to leverage relationships for

solutions in the business community. People joining or creating these networks enjoy higher

rates of return because they are informed about, and perhaps help create, opportunities (Burt

1992). Social capital arises from individuals creating and controlling information flow in a

network (Burt 1992). Social capital is “the sum of the resources, actual or virtual, that accrue

to an individual or a group by virtue of possessing a durable network of more or less

institutionalized relationships of mutual acquaintance and recognition” (Bourdieu and

Wacquant 1992, p. 119). Social capital represents the goodwill available to individuals or

groups from their network of relationships (Adler and Kwon 2002). It is argued that social

capital facilitates information sharing, mutual trust, and joint problem solving, thus enhancing

efficiency of transactions (McEvily and Marcus 2005). Research on the causal influence of

social capital on firm outcomes should increase our understanding of managing relationships.

Social media networks provide a perfect opportunity for investigating the genesis and

usefulness of social capital. Sharing, rather than telling or selling, is the principle behind

social media. Using a “build your network before you need it” premise, individuals in

19
networked relationships with potential customers may find it easier to gain traction with

clients by meeting through means other than “cold calls.”

Organizations that proactively encourage employees to network can aggregate these

interactions into an intangible resource (Adler and Kwon 2002). This type of in-depth

interaction can create profitable opportunities for organizations. For instance, a sales proposal

that might otherwise have been rejected outright could now make it to the consideration set.

The “connection” in the customer firm may help the proposal to the next stage. Certainly, the

proposal will need to stand on its own merit, but the ability to present to the decision-making

unit is a coveted position for a selling organization.

In the B2B sales context, prospect development and customer acquisition are two central

themes in sales performance. This paper contends that firms can increase social capital by

systematically leveraging social media to expand networks and, as a result, increase

performance within their firms. Social capital exists at the individual and collective levels.

Therefore, strength in social capital can shorten transaction times because of the social

connections between knowledge seekers and knowledge owners (Baehr and Alex-Brown

2010). In essence, the prior social connectivity between buyers and sellers can potentially

affect outcomes based on networked familiarity and trust—that is, social capital between the

parties involved.

Van Deth (2003) concluded that an increase in social capital allows for less costly

collaborative transactions between concerned parties. Value, mutual trust, and reciprocity

enhance the chances of mutually beneficial exchanges through reduced risk of failed

transactions. Although Van Deth’s work is from a societal perspective, his conclusions are

readily useful for a sales force and selling organization.

20
2.5.2 Diffusion of Innovation Model

The diffusion of innovation model as asserted by Rogers (1983), describes a particular

innovation moving through a population over time. It states that with any new product or

practice some people will be the first to adopt it, others will wait until most of their peer

groups have already accepted it and others will never change their ways. The model will help

us to briefly understand how the adoption of e-business impacts the sales performance of the

traditional business. Everett Rogers propounded this theory in 1983. Rogers (1983) explains

that there are different phases of people who use and/or adapt to innovations when it is

established and these phases of people are the innovators, the early adopters, the Early

Majority, the Late Majority, and Late Majority. The model falls under the adopter category

which is also part of the Diffusion of Innovation decision-making process. Rogers (2003)

defined the adopter categories as “the classification of members of a social system based on

innovativeness” This is displayed in Figure 2.2 below

The innovators are people who like to try out new ideas and new things that have been

introduced. They constitute only 2.5% of the market. Rogers also defined them as

gatekeepers because they introduce innovations into the social system.

The Early adopters constitute only 13.5% of the market and are conscious of the need to

change or adapt to something new. They are usually leaders or people who have high

positions.

The early majority constitute only 34% of the market and are people who say seeing is

believing. They need to see that whatsoever new idea is working as it said it would before

they adopt. They do adapt to new ideas.

Late Majority are very skeptical about change. It takes quite some time for them to adapt to

change. They constitute only 34% of the market.

21
Laggards are people who are bound by old traditions. They are attached so much to their old

way of doing things and are difficult to bring on the ship of change. They constitute only 15%

of the market.

Figure 2.2. Diffusion of Innovation

Source: Rogers (2003)

The innovation diffusion theory has been used, for example, to explain Internet-based service

adoption. Therefore, a theory further addressed the components such as relative advantage,

compatibility, complexity, trialability, and observability which are believed to affect the rate

at which technology diffuses.

2.5.2.1 Relative advantage

Relative advantage is defined as the degree to which the innovation is considered as being

better than the existing method of performing the same task. It is suggested in the theory that

relative advantage has a positive influence on behavior intention. Relative advantage is the

degree to which an innovation is perceived as better than the idea it supersedes. The degree of

relative advantage may be measured in economic terms, but social-prestige factors,

convenience, and satisfaction are also often important components. It does not matter so

much whether an innovation has a great deal of "objective" advantage. What matters is

22
whether an individual perceives innovation as advantageous. The greater the perceived

relative advantage of an innovation, the more rapid its rate of adoption is going to be (Simon

& Schuster, 2003).

2.5.2.2 Compatibility

Compatibility is the degree to which an innovation is perceived as being consistent with the

existing values, past experiences, and needs of potential adopters. An idea that is not

compatible with the prevalent values and norms of a social system will not be adopted as

rapidly as a compatible innovation (Wejnert, 2002). The adoption of an incompatible

innovation often requires the prior adoption of a new value system.

2.5.2.3 Complexity

Complexity is the degree to which an innovation is perceived as difficult to understand and

use. Some innovations are readily understood by most members of a social system; others are

more complicated and will be adopted more slowly (Greenhalgh, Robert, Macfarlane, Bate,

Kyriakidou & Peacock, 2005). In general, new ideas that are simpler to understand will be

adopted more rapidly than innovations that require the adopter to develop new skills and

understandings.

2.5.2.4 Trialability

Trialability is defined as the degree to which an innovation may be experimented with on a

limited basis before making an adoption (or rejection) decision. New ideas that can be tried

on the installment plan will generally be adopted more quickly than innovations that are not

divisible. According to Greenhalgh et al., (2005) Ryan and Gross found that every one of

their Iowa farmer respondents adopted hybrid-seed corn by first trying it on a partial basis. If

the new seed could not been sampled experimentally, its rate of adoption would have been

23
much slower. An innovation that is trainable represents less uncertainty to the individual who

is considering it for adoption, as it is possible to learn by doing (Berwick, 2003).

2.5.2.5 Observability

Observability is defined as the degree to which the results of an innovation are visible to

others (Rogers, 1995). The easier it is for individuals to see the results of an innovation, the

more likely they are to adopt it. Such visibility stimulates peer discussion of a new idea, as

friends and neighbors of an adopter ask him or her for innovation-evaluation information

about it (Denis, Herbert, Langley, Lozeau & Trottier, 2002).

2.5.3 Technology Acceptance Model (TAM)

Davis (1989) developed TAM to explain or predict people’s behavior intention of adopting

IT systems/products. Davis originally suggested two important factors that influence users’

adoption of information systems. First, people tend to use a system/product depending on

how they believe a system/product will help them perform their job better (Tahar et al.,

2020), which is referred to as perceived usefulness and is defined as “the degree to which a

person believes that using a particular system would enhance his or her job performance”.

Second, even if users believe that a particular system or product is useful, they may also

believe that the system or product is too hard to use or adopt (Lee, Hsiao, & Purnomo, 2014).

Hence, they will consider the performance benefits of using this system or product are

outweighed by the effort of using the application. Davis (1989) referred to this perception as

perceived ease of use. Hsu and Lin (2008) further mentioned that enjoyment is the level of

emotional satisfaction of social network users, which consists of two factors: the using time

and the using performance. Therefore, it can be said that social networking users are involved

in the process of interacting with the social network as it brings joy and excitement (Lee et

al., 2014). Lin and Bhattacherjee (2010) further contended that perceived enjoyment can be

defined as the excitement and happiness derived from IT use.

24
The main advantage of this model over others is that the two related beliefs can generalize

across different settings. Thus, some argue that it is the most robust, parsimonious, and

influential model in explaining information technology adoption behavior (Elliot &

Loebbecke, 2000). Indeed, since its development, it has received extensive empirical support

through validations, applications, and replications for its prediction power (Venkatesh &

Morris, 2000). A number of modified TAM models were proposed to suit new technologies

including the Internet and intranet (Horton, Buck, Waterson, & Clegg, 2001).

A major theoretical limitation of the Technology Acceptance Model is the “exclusion of the

possibility of influence from institutional, social, and personal control factors” (Dillon &

Morris, 1996). Thus, the suitability of the model for predicting general individual acceptance

needs to be re-assessed as the main Technology Acceptance Model constructs do not fully

reflect the specific influences of technological and usage-context factors that may alter user

acceptance.

As a result of the shortcomings, many authors have extended TAM with additional

constructs. Mbogo (2010) for instance, employed TAM and extended it to include other

factors such as perceived ease of accessibility, perceived low cost, perceived security,

perceived convenience, perceived satisfaction, and perceived support to investigate the

success factors attributable to the use of CAS.

2.5.3.1 Perceived Usefulness

Perceived usefulness is “the degree to which a person believes that using a particular system

would enhance his or her job performance” (Dholakia & Dholakia, 2004). That is, potential

adopters, assess the consequences of their adoption behavior based on the ongoing

desirability of usefulness derived from the innovation (Venkatesh & Davis, 2000). In fact,

information system adoption research suggests that “a system that does not help people

25
perform their jobs is not likely to be received favorably” (Pagani, 2004). Perceived usefulness

is also known as performance expectancy which is based on the expectancy theory that

models the roles of beliefs in decision making (Venkatesh, Morris, Davis, & Davis, 2003).

That is, innovation is believed to be of high usefulness when a potential adopter believes that

there is a direct relationship between use, on the one hand, and productivity, performance,

effectiveness, and satisfaction, on the other (Lu, Yu, Liu, & Yao, 2003). Usefulness

recognition is important because it has been found to have a strong direct effect on the

intention of adopters to use the innovation.

According to Parasuraman, (2000) using the user acceptance theory developed by Triandis, as

a basis, Funk, (2005) argues that perceived usefulness can be split into two parts. Near-term

usefulness is perceived to have an impact on the near-term job fit, such as job performance or

satisfaction. Long-term usefulness is perceived to enhance the future consequences of

adoption including career prospects, an opportunity for preferred job assignments, or the

social status of adopters. Although perceived near-term usefulness has the most significant

impact on the behavioral intention to adopt an innovation, perceived long terms usefulness

also exerts a positive, yet lesser impact (Jiang, Hsu, Klein, & Lin, 2000).

The ease of use in social media depends very much on the interface design of the site, the

training in using the program, the presentation language, and the installation software needed

(Brodie et al., 2013). If the usage environment is too difficult and time-consuming, it will

lead to a negative attitude and eventually abandon the intention to participate in social media

(Aprilia & Kusumawati, 2021). The nature of social media is the interaction between the

users. Singaraju et al. (2016) claimed that social media users pay more attention to how fast

and easy to connect with other users and it will impede the approach process to social media

(Singaraju et al., 2016). In other words, it can be concluded that social media which can be

easily accessed, solve user’s problems flexibly, observe the interface easily and information

26
clearly will play an important role in shaping the positive attitude of users. The attitude of

users is reflected by their satisfaction in usefulness of social media (Al-Ghaith, 2015). Users

will greatly appreciate the usefulness of social media when it brings satisfaction to users and

helps them improve productivity in work and study

2.5.3.2 Perceived Ease of Use

Perceived ease of use is the “degree to which a person believes that using a particular system

would be free of effort” (Dholakia & Dholakia, 2004). Other constructs that capture the

notion of perceived ease of use, are complexity and effort expectancy (Venkatesh, Morris,

Davis, & Davis, 2003). Perceived ease of use may contribute toward performance, and

therefore, near-term perceived usefulness and the lack of it can cause frustration, and

therefore, impair the adoption of innovations (Venkatesh & Davis, 2000). The impact of

perceived ease of use on a user’s intention to adopt an innovation either directly or indirectly

through perceived usefulness has been documented well in the literature. However, its role in

the Technology Acceptance Model remains controversial (Fang, Chan, Brzezinski, & Xu,

2005). Fang et al., (2005) found that the nature of an innovation or a task or service related to

it may influence its perceived ease of use (Fang et al, 2005). For example, perceived ease of

use affects the intended use of innovation only when it provides intrinsic motivation but not

when it provides extrinsic rewards to its users (Gefen & Straub, 2000).

Tahar et al. (2020) suggested that the usefulness of social media is one of the first

determinants and important of user social media adoption. In addition, Kumar and

Shenbagaraman (2017) argued that user attitudes become positive when awareness of the

usefulness of social media is accepted and appreciated. Furthermore, according to Hsu and

Lin (2008), individuals would like to participate in social media activities because the

interacting process can create fun and enjoyment. Even though some previous studies have

underestimated the importance of enjoyment, fun and curiosity to motivate consumers to use

27
social media, researchers further confirmed that perceived enjoyment has a significant effect

on social media usage (Al-Ghaith, 2015; Lin & Bhattacherjee, 2010). TAM admitted that

three cognitive factors include perceived usefulness, perceived ease of use, and perceived

enjoyment are the basis for deciding attitude toward using social media.

2.6 Empirical Review

A study undertaken by Lekaj and Kercini (2017), was geared toward assessing the impact of

electronic communications on traditional businesses in Albania. The findings of the survey

indicate that most entrepreneurs are aware of the need to adapt to the modern digital world.

The Internet has had an all-around impact in commercial centers across the business world in

the form of sales, profit, market shares, and relationship building. Businesses are racing to

new markets on the internet. Although corporations use e-commerce for advertisement,

customer, and business-to-business transactions, businesses face many challenges; hence it is

not all blooming with e-business. The findings noted that entrepreneurs face many problems.

It was then concluded that the use of e-business resources poses both opportunities and

challenges. Research findings suggest that e-commerce services are evolving at such a rapid

rate that there will be many opportunities shortly for business centers; therefore, businesses

that stick to the old way of doing business will be submerged.

Rodriguez, Peterson and Krishnan, (2012) study on Social Media’s Influence on Business-

To-Business Sales Performance reveals the implementation of social media technology in a

firm’s marketing strategy has been adopted by some forward-thinking sales forces. Sharing

content and building a network of contacts are the principles behind social media. The

utilization of social media (e.g., LinkedIn and Twitter) for reaching business-to-business

clients is a relatively new phenomenon with performance outcomes essentially unknown.

Hence, to assess this impact, data were collected from 1,699 business-to-business salespeople

from over 25 different industries. Using structural equation modelling, the findings support

28
that social media has a positive relationship with sales processes (creating opportunities and

relationship management) and relationship sales performance.

Fotiadis and Stylos, (2017) also undertook a study on the effects of online social networking

on retail consumer dynamics in the attractions industry. The purpose of this study is to

examine the trends in retail consumers' consumption dynamics and patterns of purchase

behavior within this new technology-mediated environment. A behavioral purchase model

was developed and tested to understand the ways social networks influence the decision-

making of individuals planning to visit a theme park. In particular, the proposed model

delineates how online social networking (OSN) experience factors affect the actual use (AU)

of social media for purchasing theme park services through an assessment of perceived

usefulness (PU) and perceived ease of use (PEOU). An electronic survey was conducted with

members of a theme park's brand fan page on the Facebook social media site namely, the E-

da World theme park in the southern Taiwanese city of Kaohsiung. Smart PLS 3, a partial

least squares analysis, was employed to examine a series of eleven research hypotheses. The

finding of the study revealed that perceive ease of use and perceived usefulness have a direct

and significant effect on sales of service. The results of the study showed that social group

behavioral factors affect Online Social Network users' tendency to select and purchase

amusement services and give new marketing guidelines that can serve as a basis for the

effective positioning of theme parks.

Pourkhani, Abdipour, Baher, and Moslehpour’s (2019) study on the impact of social media

on business growth and performance showed from the beginning of 2005 through January

2019, 2682 articles have been indexed. The findings also showed that the United States with

1269 published articles and the Business Horizons Magazine with the publication of 73

articles, pioneered in the publications of this topic. Analysing the content of the works

produced in the applications of the social media help businesses growing trend in this area

29
Ainin, Parveen, Moghavvemi, Jaafar, and Mohd-Shuib’s (2015) study focused on

investigating the factors that influence Facebook usage among small and medium enterprises

(SMEs). In addition, it examines the impact of Facebook usage on the financial and non-

financial performance of SMEs. The researchers used an integrated model to examine the

influence of compatibility, cost-effectiveness, interactivity, and trust in Facebook usage on

organizations’ performance. Statistical analyses were based on the data collected, through a

survey questionnaire from 259 SMEs in Malaysia. The Partial Least Square (PLS) method

was used to test the hypotheses. The study revealed that Facebook usage has a strong positive

impact on the financial performance of SMEs. Similarly, it was also found that Facebook

usage positively impacts the nonfinancial performance of SMEs in terms of cost reduction on

marketing and customer service, improved customer relations, and improved information

accessibility. Additionally, factors such as compatibility, cost-effectiveness, and interactivity

were identified as factors that influence Facebook usage among SMEs.

2.7 Conclusion

The introduction of the web 2.0 was the point of transition into the internet age where most

businesses are going virtual with their operations or augmenting the internet operation to their

traditional business. Since the introduction of social media which has been adopted by several

business, it had influenced business operations and consumer behavior in terms of

perceptions and preference; hence, the social capital theory diffusion of innovation and

theory of acceptance model were the theoretical underpinnings of this study. The chapter

reviewed several empirical studies to outline the various findings of other researchers and

scholars in related studies. Such of which revealed the impact of social media on sales of both

firms using operating online and to those operating as traditional retailing. It was noted in the

literature review that several benefits have been accrued to both businesses and customers.

30
 CHAPTER THREE

METHODOLOGY

3.1 Introduction

This chapter discusses how the study was conducted which includes the research design,

study population, sampling and sampling procedures adopted for the study, the instruments

used, and procedures followed in the data collection and analysis outlined below.

The methodology for this research was mainly quantitative, as it is believed that this method

facilitates answering the study’s research objectives. Such approaches may underplay potent

emotional, situational and issue-contingent influences on individual decision making. Typical

quantitative methods include surveys, experiments, census, simulation, psychometrics

(Proctor, 2000).

3.2 Research Design

According to Creswell (2009), a research design is the research process that includes the

research potential and overall assumptions of the method of data collection and analysis. The

research study adopted the descriptive research design which describes phenomena and

accurate observations, and the focus on the validity and reliability of the observations (Terre-

31
Blanche, Durrheim, & Painter, 2006). According to Sanders & Smidt, (2007), the descriptive

method of research includes the procedure for collecting, classifying, summarizing and

presenting data. Accordingly, the instrument used in collecting information was a structured

survey questionnaire due to the quantitative nature of the study, and the source of information

was a primary source. The researcher used the Statistical Package of Social Sciences (SPSS

22) to processes the raw data collected into meaningful and interpretable information.

3.3 Research Population

According to Shayib (2013) population is a set of objects called elements that share a certain

property, and it is the entire group to be studied. The population of this study generally

focused on all forms of business within the district, especially those engaged in traditional

commerce. According to the Ghana Statistical Service (2021), the population estimation

stood at 75,303 and as per the district’s NBSSI office, 62 percent of its population is engaged

in all forms of business activity. Thus, the target population for the study was 46687 which

marks the population of the business owners in the Aywaso west Wuogon District.

3.4 Sampling Technique

This research employs a probability sampling, in that the sample is selected using a random

selection method (Saunders, Lewis and Thornhill, 2009). A simple random sampling was

adopted for the study to give all participants that fall within the sample size drawn an equal

chance to be selected to partake in the survey. Simple random sampling procedures have two

advantages; first, this strategy doesn't rely upon the accessibility of specific workers or a

particular individual, so all the members of the population will have the chance to respond on

an equitable premise; also, human predisposition is negligible or avoided. Such qualities are

the method of reasoning behind using the simple random sampling technique. A good

representative sample is the one that does away with bias and must be sufficiently enormous

32
to cover the research focus and serve the research objectives. In this manner, utilizing simple

random sampling was viewed as appropriate for this study, permitting any retailers and other

forms of business owners to be arbitrarily chosen, which would yield results that could

represent the entire population and it would have a high tendency of generalization (Bryman

& Bell, 2011).

3.5 Sample Size

Appropriate sample selection is crucial to successfully answer research questions and theory

building (Yin, 2002). Therefore, the sample size of the study was ascertained after obtaining

information from the district assembly the number of businesses operating within the

Ayawaso West Wougon Municipality. The sample size was 156 was selected using the

Yamane Taro formula presented to be: cackle

N
n= 2
1+ N ( e)

Where:

n = the sample size,

N= the population size (The target population is 46687)

e = the acceptable sampling error (the degree of freedom is 0.1 or 10%)

46687
n= 2
1+ 46687(0.1)

n=99.79

n ≅ 100

3.6 Data Collection and Instrumentation

A well-designed survey questionnaire was used as the data collection instrument. The

questionnaire designed with closed-ended questions that were set on the Likert scale basis.

33
According to Saunders, et al. (2009), using questionnaires as a data collection instrument is

efficient especially when collecting data from a large number of people because the

respondents will be asked to respond to the same set of questions, hence avoiding bias in the

data collection process. The questionnaire was divided into three sections. Section ‘A’

presented the respondents’ demographic information such as sex, age, educational status

among others. Section ‘B’ covered the questions on perception of traditional retailers on

social media, Section ‘C’ addressed the most popular social media known and used by

retailers and the frequency of use and Section ‘D’ covered the impact of the use of social

media on tradition businesses. A Cronbach alpha analysis is carried out to test the reliability

level of the instrument used in collecting the data. The Cronbach alpha test that falls below

7.0 was considered unreliable and hence cannot be relied on for generalization.

3.7 Administration of Research Instrument

The study survey questionnaire was printed after approval and physically distributed across to

the various respondents that fall with the evoked population. Due to the educational

background variation, the researcher explained the content of the questions to the respondent

to enable them to appropriately respond to the questionnaires. To avoid response bias,

respondents with a low educational background are allowed to tick the right respondents after

adequate guidance from the researchers. The researchers collect the administered

questionnaires immediately after completion.

3.8 Data Analysis

To achieve the objectives of this study, the data which is collected is analysed using the

descriptive statistics analytical tool. The Statistical Package for the Social Sciences (SPSS

22) is the analytical tool used in organizing and processing the data for interpretation. SPSS is

an analytical and scientific software used to organize the data, determine significant

34
relationships and identify differences, similarities with and between different categories of

respondents and constructs. The descriptive analyses on the various constructs are displayed

on graphs, charts and frequency tables.

3.9 Conclusion

In addressing the objectives of the question and examining the nature of the work, the study

deemed it appropriate to take the positivist stance. Therefore, the quantitative research

method is used to address the objectives alongside the utilization of descriptive research

design. The study also employed the random sampling technique to gather data from 100

respondents sampled for the study and used the survey questionnaire instrument to collect

data from this sampled size. The Statistical Package for the Social Sciences is the analytical

tool used to analyse, organize and summarize the data to be presented on tables and figures.

The analysis carried out took the form of descriptive analysis, correlation and regression

analyses. The next chapter will display the analysis from the data collected and discuss the

findings thereof.

35
 CHAPTER FOUR

DATA ANALYSIS AND INTERPRETATION

4.1 Introduction

This chapter presented the analysis from the data that was collected from one hundred (100)

respondents on their socio-demographic background, their responses towards knowledge and

use of social media, their perception of social media, and the impact of social media on

traditional retail business. These descriptive analyses are presented in diagrams and tables

below. It also discusses the findings of the study after running a correlation analysis to

establish the effect of one variable on the other.

4.2 Socio-Demographic Characteristics of Respondents

This section presented information on the respondents on their gender, age, educational

background, current position, years of operation in the retail business,

4.2.1 Gender

Table 4.1 below shows the gender distribution of the respondents to the study.

Table 4.1. Gender of Respondents

Variables Frequency Percent Valid Percent Cumulative Percent

36
Female 68 68.0 68.0 68.0
Male 32 32.0 32.0 100.0
Total 100 100.0 100.0

Source: Field data, 2022

The analysis in table 4.1 above showed that 68% (n=68) of the respondents were female

while 32% (32) were males. The nature of the retailing business which is mostly small and

medium in nature is noted to be dominated by females with just a handful of males.

Therefore, the dominance of female respondents over their male counterparts in this study

can be attributed to the nature of the retailing industry in Ghana.

4.2.2 Age

The analysis of the age distribution of respondents is displayed in Table 4.2 below.

Table 4.2. Age of Respondents

Variable Frequency Percent Valid Percent Cumulative Percent

20-29 years 10 10.0 10.0 10.0
30-39 years 46 46.0 46.0 56.0
40-49 years 21 21.0 21.0 77.0
50-59 years 22 22.0 22.0 99.0
60 years & above 1 1.0 1.0 100.0
Total 100 100.0 100.0
Source: Field Data, 2022

The study analysis indicated that most of the respondents are in their prime age and they fall

within the Millenia and the Generation Z. Table 4.2 above shows that 77% of the respondents

are within their active working years as they fall between 20 and 49 years. Those who fall

between 50 – 59 years recorded 22% (22) and only a person fell within 60 years and above.

According to Ryan (2014), Millennials are considered to be digital natives although it is a

generation born before the internet. However, millennials were teenagers or young adults

when the internet emerged and are therefore digitally savvy and have adapted to the web and

37
its prospects. So-called Generation Z came after the Millennials and represents the youngest

generation today. These individuals were born into the digital age and are living their lives

fully integrated with social media powered by information technology. Hence, this category

of respondents can fully grasp the essence of social media in business.

4.2.3 Educational Background

The table (Table 4.3) below displays the educational qualification of the main participants of

the study. It shows the highest educational qualifications of these respondents.

Table 4.3 Educational Qualification

Variables Frequency Percent Valid Percent Cumulative Percent

HND/Diploma 19 19.0 19.0 19.0
Bachelor's Degree 33 33.0 33.0 52.0
Master’s Degree 16 16.0 16.0 68.0
Primary/JHS 13 13.0 13.0 81.0
NVTI/COTVET/ 19 19.0 19.0 100.0
SHS
Total 100 100.0 100.0
Source: Field Data, 2022

The analysis of educational background showed that most of the respondents’ highest

education was Bachelor’s Degree and this was represented by 33% (33). The educational

qualification with the least number of respondents was Primary/JHS with a 13% (13)

representation. Other known qualifications were HND/Diploma and Master’s Degree which

recorded 19% (19) and 16% (16) respectively. Others such as (NVTI/SHS/COTVET) also

scored 19% (19) of the total number of respondents.

4.2.4 Position held by Respondents

Figure 4.4 presents the analysis of the various positions held by the respondents in the study.

38
Table 4. 4 Position of Respondents

Variables Frequency Percent Valid Percent

Business Manager 13 13.0 13.0
Business Owner 87 87.0 87.0
Source: Field Data, 2022

The interpretation displayed in Figure 4.4 revealed that owners of the retail businesses form

the majority of the respondents and are actively engaged in the day-to-day running of their

business; they are a total of 87% (87) respondents. It was observed by the researcher that

some of the SMEs within the Ayawaso West Wougon Municipality engage employees in

their day-to-day running of the business; such respondents were 13% (13) of the total

respondents. This indicated that the majority of the participants were the right people with

adequate information to assess the effect of social media on their traditional business.

4.2.5 Years of Operation

The analysis of respondents’ employment status within the organization and their years of

experience with the organization is displayed in Table 4.5 below.

Table 4.5 Years of Operating Traditional business

Years of Operation Frequency Percent

0-5 years 21 21.0
6-10 years 31 31.0
11-15 years 30 30.0
16 years & above 18 18.0
Total 100 100.0
Source: Field Data, 2022

The study also indicated that 31% of the respondents have operated their businesses between

6-10 years and 30% (30) of them have operated their retail businesses for a maximum of 15

years. The category of respondents who have operated their businesses for 16 years and

above was 18% (18). This indicates that most the retailers have worked for quite some time

39
to experience the various transformational changes that the retail business had gone through

in this fast-changing technological era.

4.3 Perception of Retailers on the Use of Social Media

This section of the analysis reveals the various perception of traditional retailers on social

media. The analysis of the responses is therefore displayed in Table 4.7.

Table 4.7 Perception of Traditional Retailers on Social media

Statement Mean SD
Online business is not credulous as most products are not exactly as 3.2308 1.03392
displayed
Social media is too complex 2.4487 1.09718
It’s difficult to build direct customer relationships over the internet 2.7821 1.12045
Social media is for bigger firms that deal in a huge quantity of 2.2051 1.12862
products
Social media requires a high level of expertise 2.8526 1.12338
Most fraudsters operate on the internet now so it’s not safe. 4.3782 1.07968
It is expensive to run an online business since you will need a 3.6795 1.18587
professional to outsource that to
There is a higher risk as a result of distance, virtual identity, and 4.3269 1.05441
lack of trust in the regulation.
Respond to customer’s problems in real-time is limited 4.1410 1.08031
Source: Field Data, 2022

The analysis in Table 4.6 responses ranges between 1 (Strongly Disagree) which signifies the

minimum response and 5 (Strongly Agree) which signifies the maximum. Therefore, the

average responses from the perception of retail business operators indicated that they

40
perceive Social media as not too complex, and easy to build direct customer relationships

over the internet, Social media is not for bigger firms with a deal in a huge quantity of

products and it requires a high level of expertise. But the respondents were indecisive about

whether online business is credulous as most products are not exactly as displayed or not and

it is expensive to run an online business since you will need a professional to outsource that

to or not. The respondents are of the perception that most fraudsters operate on the internet

now so it’s not safe, there is a higher risk as a result of distance, virtual identity, and lack of

trust in the regulation and response to customer’s problems in real-time is limited.

4.4 Choice and factors influencing the choice of Business

In spite of the diverse positive and negative perception of social media, a multiple response

analysis was run to assess the type of business retailers prefer to operate and the results was

displayed in Table 4.8.

Table 4.8 Preference for the Type of Business

Frequency Percen
t
Traditional Retailing 15 15%
Social media 22 22%
Both Traditional business and Online business 63 63%
Source: Field Data, 2022

The findings on business operating preference showed that 15% of respondents prefer to run

only traditional retailing business, 22% prefer operating solely online business on social

media while majority of the respondents prefer to augment social media online. A further

analysis to substantiate the reason behind their choice of business was conducted and the

results displayed in table 4.9 below.

Table 4.9. Factors Influencing the Choice of social media -41

41
 Statement N Mi Max Mean SD
n
Geographical Restriction in e-commerce is less 100 1.00 5.00 4.1410 .97682
compared to others.
There is no time restriction for trading online. Its 100 1.00 5.00 4.5936 .91930
available 24hours throughout the week
All the information is available regarding the 100 1.00 5.00 3.6282 1.00462
product so a customer can easily find their product
Variety and flexible payment options 100 1.00 5.00 3.4551 1.03701
Purchasing on Social media sites is easy and less 100 1.00 5.00 3.5897 .98944
time consuming
It is cost-saving and convenient 100 1.00 5.00 4.1192 .98682
More varieties of a product can be sold online with 100 1.00 5.00 4.2079 .80658
no need for shopping space
Better return and replacement policies are available 100 1.00 5.00 2.7949 1.03934
for the consumer on social media
Social media makes advertisement easy for business 100 1.00 5.00 4.1615 .79421
owners
It is easy to manage data and have an analytical 100 2.00 5.00 4.0244 .85439
report on transactions
Source: Field Data, 2022

The analysis in Table 4.9 displays the average response on the factors that influence the

choice of retailers on their means of trading. With the responses ranging from a minimum

response of 1 (strongly disagree) and 5 (strongly agree), the factors that were greatly agreed

upon include the fact that there is no time restriction for trading online and transactions are

processed 24hours throughout the week. Another factor that came out highly agreed upon

was the wide range and varieties of products can be sold at once online. Others are global

exposure for the business, cost-saving and convenience, ease of advertisement for business

owners and easiness of data management and analytical report on transactions. Despite these

revealing factors that support the choice of social media over the traditional business, it was

42
noted that return and replacement policies were considered as a factor that does not influence

most people to choose social media as a means of trading.

This study finding on preference of the type of business is consistent with the findings of

Gupta et al.’s (2018) study which showed that about majority of people prefer e-commerce

over the traditional market because it overcomes geographical limitations, gain new

customers with search engine visibility, lower costs, locate the product quicker, eliminates

travel time and cost, provide comparison shopping, enable deals, bargains, coupons, and

group buying, provide abundant information, create targeted communication and remain open

all the time. The factors that influence the majority of the retailers to choose to blend social

media way of operating business with their existing traditional business as it gives them an

extra advantage.

4.5 Popular social media Known and Used by Retailers

To understand the knowledge level of social media and why retailers hold such perceptions of

social media and their preference for the means of business operation, they were further

asked about the social media they know. Multiple responses were allowed and the results

were run and displayed in Figure 4.1.

Figure 4.1. Popular social media Known among Retailers

43
Source: Field Data, 2022

The analysis displayed in Figure 4.1 showed that the popular social media among traditional

retailers include WhatsApp with 98% rate, Facebook with 82% rate, and YouTube with 80%

rate, and Instagram with 73% rate. These were followed by Twitter and Snap chat. The social

media platforms that were unpopular among retailers in the Ayawaso West Wougon

municipality include Zoom, LinkedIn and Pinterest. This is because only 8% of the

respondents know about Zoom, 2% knows about LinkedIn and only 1% of the respondents

knows about Pinterest.

A further multiple responses analysis was run to know unearth the social media tool

traditional retailers use in line with their business. The study analysis revealed that most

respondents use more than just one social media in for their businesses. Thus, 92% of the

respondents revealed that they use Facebook, 71% use Instagram, 63% use YouTube and

57% of the same respondents use WhatsApp in addition to their traditional retailing business.

Only 24% and 2% of these same respondents use Twitter and LinkedIn respectively in their

line of business. Surprisingly, 9% noted they don’t use social media at all.

Figure 4.2. The Popular social media Used by Traditional Retailers

44
Source: Field Data, 2022
These respondents further revealed that, they have found social media tools useful to promote

and advertise their businesses as well as their products to reach the market beyond their

jurisdictions, to drive sales, to reach customers and to develop relationship with their

customers and to create a competitive edge for their business and product as these products

have saturated the local market and they have to compete for the same number of buyers. For

other reasons, few of the respondents noted that, they stay clear of social media and run

solely their traditional business because, they believe social media is a ‘den of thieves and

fraudsters’, for the younger generation and it is complex. They further noted that, they have

gained the popularity in their local market and hence, do not see the need to use social to

drive sales or whatsoever.

The findings of this current study are consistent with the recent discovery made by Statista

(2021) likewise Sasu (2021) who revealed that the popular social media that are widely used

across the world include Facebook, Instagram, YouTube and Twitter. Although they stated

that, top businesses often use LinkedIn and it came third on their chat, it quite the opposite in

the case here in Ayawaso West Wougon Municipality. Just a few people know about it and

use it. Furthermore, the reasons for augmenting social media into traditional retailing are

45
consistent with the discoveries of Hill et al. (2006) who revealed that social networking is

used to target market beyond the geographical parameters of the user, and with the Helmsley

(2000) who also noted that social media can be used as a tool for customer service. Hill and

Moran (2011) also revealed that the interactivity nature of social media helps form a good

relationship with customers and create a competitive edge. This further contributes to the

social capital theory which states that social media as a social capital facilitates information

sharing, mutual trust, and joint problem solving, thus enhancing efficiency of transactions

(McEvily & Marcus, 2005)

4.5.1 Frequency of Use of social media

Table 4.10 displays the analysis on how often respondents use social media to promote their

traditional retailing businesses and product, drive sales, and increase their market among

other reasons.

Table 4.10. Frequency of using social media

Frequency Percent
How often do you purchase Daily 31 31%
beauty products online? Weekly 22 22%
Monthly 10 10%
Quarterly 25 25%
Semi-Annually 7 7%
Annually 2 2%
I don’t sell online 3 3%
Source: field study, 2022
From the analysis above, majority of the respondents representing 31% of their respondents

uses social media daily. Also, 22% of the respondents noted that for business purposes, they

use social media weekly and 10% makes monthly budget for it and hence uses it monthly.

Those who use social media quarterly and semi-annually for their business purposes were

25% and 7% respectively. Just a handful of the traditional respondents noted that they use

social media once a year and they represent 2% of the total respondents; however, 3% do not

use any of the social media platforms for business purposes.

46
This finding buttresses the assertion made by Rogers (1983) in his diffusion of innovation

model. He explains that there are different phases of people who use and/or adapt to

innovations when it is established and these phases of people are the innovators, the early

adopters, the Early Majority, and the Late Majority. Also, the relative advantage to business,

complexity in use and observability of results defines why some will adopt and according to

the technology acceptance model, some will accept the new technology. Further on TAM

theory, the perceived usefulness and perceived ease of use defines these acceptance and

frequency of use of social media by traditional business retailers (Tahar et al., 2020). This

explains the current results why some uses social media as part of their traditional retailing

businesses and other do not.

4.6 Impact of social media on Traditional Retailers’ Operation

This section of the descriptive analysis displays the results on both correlation analysis to

establish the relationship between the dependent and independent variables. Thus, to know

the aspects in which social media impact traditional businesses?

Table 4.11 Pearson Correlation

  1 2 3 4 5
1. social media 1
2. Sales Performance .427** 1
3. Customer Relationship .329** .462** 1
4. Profitability .409** .826** .801** 1
5. Increase in Market Share .142** .518** .481** 0.254** 1
**. Correlation is significant at the 0.05 level (2-tailed). N=100

47
From the results, the independent variables (social media) correlate positively with the

dependent variables (thus, sales performance, customer relationships, profitability and

increase in market share). For instance, the use of social media has a correlation coefficient of

r = 0.427 with sales performance, r = 0.329 with improvement of customer relationship; r =

0.409 with Profitability and r =0.142 with increase in market share. This finding indicates

that, when traditional retailers augment social media in their businesses and increase these

tools, their sales performance, improvement in customer relationship, profitability and market

share will also increase.

This effect social media has on traditional businesses were confirms the results of Lekaj and

Kercini (2017), Rodriguez et al. (2012) and Ainin et al. (2015). Lekaj and Kercini (2017)

study results revealed that the Internet has had an all-around impact in commercial centers

across the business world in the form of sales, profit, market shares, and relationship

building. Also, Rodriguez et al. (2012) findings support that social media has a positive

relationship with sales processes (creating opportunities and relationship management) and

relationship sales performance. In a similar fashion, Ainin et al. (2015) revealed that social

media usage has a strong positive impact on the financial performance of SMEs. Similarly, it

was also found that social media usage positively impacts the nonfinancial performance of

SMEs in terms of cost reduction on marketing and customer service, improved customer

relations, and improved information accessibility.

4.7 Conclusion

The analysis of the study using descriptive statistics indicated that, the study is highly

characterized by the female than their male counterparts and most of these people are owners

of the retail shops sampled for the study and their highest education qualification is tertiary

whilst the some have only attained only a basic education level. A critical assessment of

perception on social media revealed diverse perception either in the negative or positive or
48
neutral. The study also indicated that there are several factors that influence retail business

owners to adopt and augment online business instead of just sticking to traditional method.

Some of these factors include, cost saving, convenience, coverage or globalization, 24 hourly

service, etc. In view of this, retailers use popular social media platforms such as Facebook,

Twitter, Instagram, WhatsApp, and YouTube. This study finally revealed that there is a

positive relationship between the use of social media and sales performance, improvement of

customer relationship, profitability and increase in market share of traditional retailers.

CHAPTER FIVE

SUMMARY, CONCLUSION, AND RECOMMENDATIONS

5.1 Introduction

This final chapter provides a snapshot of the entire work by providing a summary of the key

findings and recommendations of the study. The chapter ends by giving its conclusions and

suggestions for further studies.

49
5.2 Summary

The purpose of this research is to discover how social media affects traditional retailers in the

Ayawaso West Wougon Municipality. It is worth noting that the corporate world is taking a

technological turn and more firms are occupying the virtual space.

Establishing the fact that there are small retail businesses that are occupying the virtual space

and are offering the same homogeneous product with traditional businesses had led to this

assessment. Specifically, the study sought to assess the perception of traditional retailers on

social media, unearth the frequency of use of these social media and examine the effect of

social media on the traditional retail businesses in the Ayawaso West Wougon business

District. The study adopted the quantitative approach, the descriptive research design to

achieve the purpose of the study. A simple random sampling technique was adopted and

primary data was gathered for the study using a structured questionnaire. The data was

analysed by programming and coding each response into SPSS 22 and each response was

analysed producing descriptive statistics, correlation and regression analysis. The data was

presented using tables, charts and graphs. The following results were arrived at;

The study indicated that from the perception of retail business operators indicated that they

perceive social media is not too complex, easy to build direct customer relationships over the

internet, it is not for bigger firms that deal with a huge quantity of products and it requires a

high level of expertise. Also, the study showed that some of the respondents are of the

perceptions that most fraudsters operate on the internet now so it’s not safe, there is higher

risk as a result of distance, virtual identity, and lack of trust in the of regulation and response

to customer’s problems in real-time is limited. In spite of the negative and positive

perceptions, the majority of the respondents indicates that they prefer augmenting social

media into their traditional business operation. Also, the analysis indicated that the factors

that influence the adoption of e-business include an unrestricted time of operation, ability

50
offering of wide range and varieties of product to customers, global exposure for the

business, cost-saving and convenience, ease of advertisement for business owners and

easiness of data management and analytical report on transaction.

The study further revealed that social media most of the retailers frequently use social media.

Thus, majority of the retailers uses social media on a daily whilst quite a high number uses it

weekly and some monthly. A handful of these retailers makes a quarter, semi-annual, and an

annual budget for social media use hence, they only find it useful within these periods.

Nonetheless, some do not use it at all.

Finally, the correlation analysis shows that there is a direct significant relationship between

social media sales performance, improvement of customer relationship, profitability and

increase in market share of traditional retailers. The study, therefore, shows that the

emergence and insurgence of social media and it use improves the quantum of sales, the

margin of profit, the business-to-customer relationships and increases the market share of

traditional retailers.

5.3 Conclusion

The business arena is taking a turn towards the digital world. Both small and large firms alike

are taking over the virtual at the same cost. Firms that want to have a global appearance and

experience are no more building offices across nations and states but intensifying their

exposure on the internet space. This had led to a increase in sales, and other recurring

expenses such as rental, increase in sales and market shares.

The new normal has hastened the paradigm shift towards the masses occupying the social

media space and hence, firms are channeling their training resources to building expertise in

e-business and e-commerce. Hence, it is advisable for firms who are operating in the

traditional context alone to augment the business with social media or gradually migrate onto

a virtual business platform to survive the shift. The result of the study was evidential that the

51
upsurge of social media positively affects the sales performance, profitability, market share

among other factors of traditional businesses; hence, migration onto social media platform

has become a necessity.

5.4 Recommendations of the Study

Following the various findings of the study, the researcher made the

recommendations below;

It is essential for those engaged in traditional businesses to learn new skills and venture into

the new field of technology especially, getting vested in online businesses to learn how to

manage and augment e-business into their retail line of business. This will enable them to fit

into the age of the new normal where most activities are going virtue due to distancing

protocol.

The manufacturing firms who connected to such retail outlets should take it upon themselves

to organize workshops to educate and train traditional retail business owners to learn the new

way of doing business over the network and the benefit it comes with. This will enrich the

supply chain and have a ripple effect on the profitability of the main company

The government should set the right environment for businesses to go digital with their

operation in other to expand their coverage and market share to increase their profit. This will

help to increase the revenue base of the economy as more firms will be willing to pay tax.

5.5 Limitation of the Study and Areas for Further Research

The data collected for this analysis at the time using the descriptive study design. Therefore,

future research should use the longitudinal design approach to assess if the findings stay the

same or may change with time.

52
The quantitative methodology was also utilized for this research, but the study was unable to

further examine how and why social media affected sales performance and the other stated

variables positively. Hence, a further experiment should also use the mixed-method approach,

to better understand the relationship between the variables in both quantitative and qualitative

terms.

Additional studies can repeat this study in other industries and in other companies within the

same industry to determine whether the e-business has an impact on sales performance or not.

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 APPENDIX: QUESTIONNAIRE SAMPLE

IMPACT OF SOCIAL MEDIA ON TRADITIONAL RETAILERS IN THE

AYAWASO WEST WOUGON MUNICIPALITY

As part of the award of Bachelor’s Degree in marketing at Wisconsin International University

College, Ghana, I am carrying out a study on the above-stated topic, to collect useful

information on the impact of social media on traditional retail business. Any information that

you provide will be treated confidentially. Your openness to respond to the questions will

contribute immensely to this research. Please do not write your name or identify yourself on

any part of the paper. Tick [√] or write responses where applicable. I hope very much you

can be of help.

SECTION A: DEMOGRAPHICAL INFORMATION

1. Gender: Male Female
2. Age: 16 - 19 years [ ] 20 - 29 years [ ] 30 – 39 years [ ] 40 – 49 years [ ]

50 - 59 years [ ] 60 years and above [ ]

3. Highest Level of education: Primary/JHS [ ] SHS/NVTI/ COTVET [ ] Diploma/HND

level [ ] Bachelor‘s Degree Level [ ] Masters Level [ ] PhD [ ] None [ ]

Others (specify)………………………

4. Business Category of respondents: Owner of enterprise [ ] Employee [ ]

5. For how long has the business been in operation?

5 years and below [ ] 6-10 years [ ] 11-15 years [ ] 16 years and above [ ]

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SECTION B: PERCEPTION OF RETAILERS ON THE USE OF SOCIAL MEDIA
Use the scale below to tick [ ] in the space against the question.
Strongly Disagree (SD) = 1, Disagree (D) = 2, Neutral (U) = 3, Agree (A) = 4, Strongly
Agree (SA) = 5.

No Statements 1 2 3 4 5
.
1 Online business is not credulous as most products are not exactly as
displayed
2 Social media is too complex
3 It’s difficult to build direct customer relationships over the internet
4 Social media is for bigger firms that deal in a huge quantity of products
5 Social media requires a high level of expertise
6 Most fraudsters operate on the internet now so it’s not safe.
7 It is expensive to run an online business since you will need a
professional to outsource that to
8 There is a higher risk as a result of distance, virtual identity, and lack
of trust in the regulation.
9 Respond to customer’s problems in real-time is limited

SECTION C: CHOICE AND FACTORS INFLUENCING THE CHOICE BUSINESS

1. What is your preferred type of Business?
[ ] Traditional Retailing

[ ] Social media
[ ] Both Traditional business and online business

2. Factors Influencing the Choice of social media

Use the scale below to tick [ ] in the space against the question.
Strongly Disagree (SD) = 1, Disagree (D) = 2, Neutral (U) = 3, Agree (A) = 4, Strongly
Agree (SA) = 5.

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 No Statements 1 2 3 4 5
.
1 Geographical Restriction in e-commerce is less compared to others.
2 There is no time restriction for trading online. Its available 24hours
throughout the week
3 All the information is available regarding the product so a customer
can easily find their product
4 Variety and flexible payment options
5 Purchasing on Social media sites is easy and less time consuming
6 It is cost-saving and convenient
7 More varieties of a product can be sold online with no need for
shopping space
8 Better return and replacement policies are available for the consumer
on social media
9 Social media makes advertisement easy for business owners
10 It is easy to manage data and have an analytical report on transactions

SECTION D: SOCIAL MEDIA KNOWN AND USE BY RETAILERS

1. Which of the social media platform below do you know or heard of?
[ ] Facebook [ ] Twitter [ ] LinkedIn
[ ] Instagram [ ] Youtube [ ] Pinterest
[ ] WhatsApp [ ] Snapchat
[ ] Zoom
2. Select the popular social media used by you in your line of business
[ ] Facebook [ ] Youtube [ ] Zoom
[ ] Instagram [ ] Snapchat [ ] I don’t use social
media
[ ] WhatsApp [ ] LinkedIn
[ ] Twitter [ ] Pinterest

3. How frequent do you use this social media?

[ ] Daily [ ] Monthly [ ] Semi-annually
[ ] Weekly [ ] Quarterly [ ] Annually

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[ ] I don’t sell online

SECTION E: PERFORMANCE OUTPUT OF SOCIAL MEDIA

Use the scale below to tick [ ] in the space against the question.
Strongly Disagree (SD) = 1, Disagree (D) = 2, Neutral (U) = 3, Agree (A) = 4, Strongly
Agree (SA) = 5.
No Statements 1 2 3 4 5
.
1 My profit margin has gone up since I adapted to using social media
2 My sales revenue has also gone up after augmenting social media into
my business
3 I am able to interact and respond to issues concerning my products and
services in real time.
4 The proximity and relationship between myself and my clients has
improved
5 I have been able to sell to people beyond my vicinity and beyond the
boundaries of my region.
6 My customer base has increase in recent times since I hopped on social
media

Thank You!!

63