1.

BACKGROUND TO THE RESEARCH

1.1 Introduction
Today the internet has become the number one medium for media distribution and
communication in the world with the evolution of technology providing an ever-growing
expanse of opportunity for businesses to reach a target audience. Since its inception and
particularly over the last decade, the rise in the influence of social media has transformed the
world we live in. Initially created as a means to reconnect with lost friends, maintain ties
across borders and to communicate more easily, it has now increasingly evolved into an
indispensable component of how we live our everyday lives and as such changed the way in
which businesses operate across the globe.

One distinct business sector that has been affected by the social media juggernaut is the
fashion industry. Through the means of social media, what was initially only accessible to the
technologically and financially well off is now readily available to the mass market. For
example, because of an independent boutique owners’ Twitter feed, Instagram account or
Facebook page consumers previously uninformed or unconnected to the latest cyclical
fashion trends can now watch real time live footage of the Miss Universe beauty pageant or
Victoria Secret fashion show taking place from around the world, which previously was only
available to celebrities, industry members or high networked social individuals; free of
charge.

The internet has now become the international gateway to commerce with online purchasing
power playing a pivotal role in market behaviour and sales in the fashion industry. Where
previously businesses required financial investments in physical retail space, traditional
promotional channels and wide-ranging networks of partner outlets to expand the commercial
target demographics, all businesses need now is e-commerce websites with supporting social
media profiles to increase brand awareness, drive traffic and ultimately create sales.

Previous to this rise in social media outlets and the digital e-commerce age the only methods
of recording and analysing consumer sales numbers and trends were through financial
records, sales numbers and store traffic statistics. Now there are a variety of analytical data

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sources available that provide valuable insights into the effect social media has on sales as
part of a business strategy.

1.2 Aims and Objectives

The overall aim of the research is to evaluate the perceived benefits of integrating social
media marketing (SMM) into a business strategy, particularly the effect on consumer buying
behaviour and sales in the fashion industry. Furthermore the research explores the impact this
has in comparison to traditional marketing channels.

The objectives are as follows:

- To examine the traditional and digital methods of marketing in the fashion industry
- To investigate the influence factors involved in online purchasing behaviour
- To analyse the effect of social media marketing on sales performance
- To evaluate the most effective social media platform for sales in the fashion industry

The researcher will use statistical analysis to offer insights into the individual benefits and
conversion rates of marketing actions through various social networking platforms,
particularly for retailers. The study will expand on previous knowledge to provide a deeper
comprehension of the long-term gains obtained from a social media marketing strategy. The
research will offer conclusions into the benefits and disadvantages across both traditional and
digital marketing channels with an indication as to the importance of social media marketing
to a business competing in the worldwide fashion marketplace.

1.3 Rationale and Contribution to Research

The rationale of this research is to provide key insights into the direct effect on sales of a
social media marketing strategy within fashion along with the consumer buying behaviours
that can be augmented through online influence factors like celebrity endorsements and
content distribution. The research will contribute important data to existing academic and
industry knowledge, and provide insights that can be used to explore further relationships that
form the basis for a successful social media marketing plan as part of a larger digital business
strategy.

This data will be beneficial fundamentally to organisations that look to design and implement
a digital business strategy as part of an overarching business objective to boost sales and

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brand awareness of their company or products. This knowledge will empower organisations
in the fashion industry to better utilise the digital platforms available in influencing consumer
trends and purchasing behaviour.

Although there is initial progress by researchers the overall development in this field of study
is limited and primarily focussed on defining social media marketing as a construct as well as
investigating which factors effect consumer buying behaviour in respect to social networks.
Research needs to be supplemented by providing clearer evidence and understanding of the
benefits to businesses in the long term from using social media marketing in their business
strategy. Further definitive studies are required to progress from predictive and theorized
outcomes so as to provide knowledge in real life business applications. This literature review
broaches the existing gaps within social media marketing research and highlights the
requirement for future exploratory studies on the benefits gained by retailers who advertise
through social media platforms.

2. Literature Review
This section reviews multiple sources of literature to gain an understanding of the current
studies and knowledge available in the proposed research area and is accomplished in line
with the defined aims and objectives of this research.

2.1 Traditional and Digital Marketing Methods

Traditional methods of marketing such as magazines, print, posters, radio or tv provide a one-
way communication flow towards consumers with the sole objective of achieving a wide
potential reach. However, these methods have shown that achieving reach in large numbers
does not regularly translate into a true marketing exchange, with consumers becoming
innocent and often unwilling bystanders in the actions of marketeers (Hanna et al, 2011).
Through lack of interaction the information received by the consumer is limited and so the
potential for further brand investment and potential consumer purchase demand is reduced.
Mangold and Faulds develop this concept further with the notion of consumers rejecting the
“single way” construct and the adopting of a bilateral process that allows the two-way
exchange of perceptions, opinions and ideas (2009).

Traditional methods are now seen to be less effective than they once were, with McClure
highlighting that the fixed cost ramifications of inclusion in a business strategy are far higher

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than the significantly cheaper outlay of social media marketing (2009). With popular free
substitute online channels available such as Facebook, Instagram, Twitter and YouTube,
many companies have chosen to decrease their up-front marketing and advertising costs in
radio, printed media and TV (Mangold and Faulds, 2009) choosing instead opportunities that
allow consumers to learn and interact with the companies behind the brands.

Through technology customers are encouraged to interact with brands, resulting in the growth
of brand awareness, engagement, customer involvement and stimulating purchase. The term
Web 2.0 can be described as “the technical infrastructure that enables the social phenomenon
of collective media and facilitates consumer-generated content” (, thus is the basis for which
all digital marketing is formed. Berthon et al propose that the effects of the technological
revolution and in particular Web 2.0 primarily focusses on 3 aspects: a shift in the locus of
consumer activity from desktops to the web, a change in locus of the value production from
an organisation to the consumers and a shift in the locus of power away from businesses to
the consumers (2012).

Effectively Web 2.0 shifts the locus of control firmly to the consumer and becomes a
platform where the content is created, published and modified by all public participants in a
collaborative way rather than the original role of an individual or organisation in creating and
publishing all outward content. Hanna et al argue that the increase in digital media has
elevated consumer and company contact from Web 1.0 to Web 2.0 for the ability to direct
and control the context, nature and extent of marketing exchanges (2011). In essence the
change in Web 2.0 contrasting with Web 1.0 is that it can be thought of as the technology as
providing a shift in in focus from the organisations to consumers, publishing to participation,
from intrusion to invitation and the individuals to communities. Although Web 2.0 is classed
as technological the effects are clearly sociological with revolutionary implications for
worldwide business (Berthon et al, 2012).

Social media can be defined as “a group of internet-based applications that build on the
ideological and technological foundations of Web 2.0, and that allows the creation and
exchange of User Generated Content (UGC)” (Kaplan and Haenlein, 2010). Social media
offers a sharp contrast to traditional media in several ways, particularly its frequency,
flexibility, reach and quality.

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2.2 Influence Factors on Online Purchasing Behaviour
Internet based media has become a major factor in influencing numerous aspects in consumer
behaviour including opinions, awareness, information acquisition, attitudes, purchase
behaviour and post purchase communication and evaluation (Mangold and Faulds, 2009).
Social media is now identified by consumers as a more trustworthy source of information
relating to products and brands than the corporate voiced communications provided through
traditional channels (Foux, 2006).

A brand can affect consumer behaviour through any combination of changes in brand equity
or brand attitude. In particular research shows that social media communication that is user
generated has a positive impact on both brand attitude and brand equity, however company
created communications only affected the brand attitude. What’s more both brand equity and
brand attitude were demonstrated to positively impact on consumer purchase intention.
Schivinski and Dabrowski demonstrate that a company’s brand can be a major influence on
consumer purchasing intention (2016).

Brand equity has been described as a major marketing asset (Styles and Ambler, 1995) which
can create a relationship between an organisation and the public which then supports an
increase in loyalty and long-term purchasing behaviour (Keller, 2013). Additionally brand
attitude is understood as an overall evaluation of a brand (Olson and Mitchell, 1981) and is
formed around product related attributes like serviceability, durability, defects, features and
ultimately performance (Garvin, 1984). Schivinski and Dabrowski propose that ultimately the
strength of brand attitude can be used to forecast key interest behaviours to an organisation
such as consideration, purchase behaviour, purchase consideration and brand choice (2016).

The quantity and quality of information on a product, brand or organisation has been proven
to influence consumer purchasing behaviours (Brown et al, 2003). Through the internet
consumers can browse a significantly larger product catalogue with far less exertion than
previously possible through high street retail shopping and by using social media can quickly
and easily access user generated content such as product reviews and information (Lee and
Watkins, 2016). In particular is the ability to exercise product and price comparisons online
across multiple retailers; leading to a potential lower end-purchase cost for desired items,
which then result in changes in purchasing behaviours to a particular vendor along with an
improved user journey and increased purchase satisfaction. Wallace (1995) suggests that the

5
ability to conduct price comparisons have been cited as one of the dominant motives for
consumers using the internet.

It has been demonstrated that the use of video blogs in online marketing can develop the
relationship between an organisation and the consumer, with the resulting influence
impacting perception and purchase intentions (Lee and Watkins, 2016). Furthermore the
relationship on long term brand perception has been shown to be a key driver in continued
purchase intentions due to a strengthened preference and attitude towards a particular product
or brand (Kim and Ko, 2010).

2.3 Social Media Marketing on Sales Performance

The methods by which retailers communicate with customers have transformed enormously
with the birth and evolution of social media; therefore, to ensure survival and attempted
growth, businesses must become adept at using social media as part of their over-arching
business objectives (Mangold and Faulds, 2009). This is strikingly accurate for all companies
working towards gaining competitive advantages in their chosen industries.

Social media marketing has become an integral way of life and is now a fundamental part of
people’s lifestyles and not just a buzzword (McClure, 2009). This has emerged from the
growth of online communities and networks that provide the platform for people to share
communications, interests and ultimately their lives with each other with very little effort or
cost involved in the process.

Hanna, Rohm and Crittenden propose that the real influence of the social media ecosystem is
that everyone is connected (2011). Businesses are noting the ever-increasing power that
social media holds over consumers and as such social media marketing has produced new
opportunities for companies, advertisers and strategists. The modern-day marketeers are
realising the potential that these digital tools can provide in delivering a communications
message via online discussions which have developed the capacity of consumer-consumer
conversations in the online marketplace (McClure, 2009). This is best implemented when
traditional media channels (radio, television and print) are complemented by social media
activity across multiple and varying platforms and channels (e.g. YouTube, Twitter,
Instagram, Facebook and LinkedIn). It has been demonstrated that social media marketing for

6
luxury brands has increased consumer’s brand perceptions, desires for products and purchase
intentions (Kim and Ko, 2012, Phan et al., 2011).

Social media provides opportunities and challenges in equal measure when approaching the
management of customer relations. Schivinski & Dabrowski propose that the effect of social
media marketing can be seen in the facilitation of new avenues in which industries can
strengthen and broaden their relationship with consumers and develop brands with the use of
a varied digital business strategy (2016). Social networks in particular leverage the power of
interactive relationships and the collective knowledge of the masses to provide a variety of
communication channels through which organisations and individuals can be accommodated
(Berthon et al, 2012).

Conversely, Schivinski & Dabrowski highlight the potential negative implications with the
fact that brand pages across social media are unregulated communities where unavoidably
consumers will conduct conversations that are candid and open due to the format of
discussion, peer to peer, when referring to their opinions on products, services or
organisations (2016). From this we recognise the potential dividends and dangers of
consumer comments regarding an organisation; its products, services, staff or a combination
of these aspects.

Additionally, it is demonstrated that social media also has interpersonal factors to consider
when broadcasting marketing material, therefore informational or normative influences may
work in favour or against a brand depending on the level of consumer engagement and
investment (Mangould & Faulds, 2009).

2.4 Social Media Platforms

The exponential growth of social networking sites (SNS) such as Facebook, YouTube,
Twitter and LinkedIn along with photo sharing platforms like Instagram and Pinterest have
led to what can now be labelled as ‘the social media phenomenon’ (Kietzmann et al, 2011).
These sites attract billions of users, many of whom assimilate these into their everyday lives
(Body and Ellison, 2007). The number of social network users worldwide has nearly tripled
in the last decade growing from .97 billion in 2010 to 2.77 in 2019 (Statista, 2019). Facebook
is the most popular social networking site in the world with over 2 billion registered users

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(Facebook, 2018) with the latest report from Statista (2018) putting them ahead of YouTube
(1.9 billion), Instagram (1 billion), Twitter (335 million) and LinkedIn (303 million).

Although there are currently hundreds of SNS’s online they are said to have three major
features and capabilities: Firstly the capacity to create a public or semi-public profile;
secondly the ability to identify other users of which there is a shared connection and finally
the ability to track and view individual connections as well as those forged by others (Boyd
and Ellison, 2007). Furthermore it has been demonstrated that social media use is motivated
fundamentally by two social drivers: (1) the need to belong, and (2) the need for self-
presentation (Nadkarni and Hofmann, 2012). It has been shown that these functions allow
users to communicate and express their actual personality rather than promoting an idealised
version of themselves (Back et al. 2010) and as such provides freedom for self-disclosure
both consciously and unconsciously (Kaplan and Haenlein, 2010) that can sometimes be
difficult offline.

Within the term SNS there are three key formats that we understand as part of social media
use. Facebook is regarded as the prototypical SNS (Wilson et al, 2012) with the majority of
features optimised to facilitate social two-way interactions between its members within their
community and friends. Twitter is a microblogging site vastly different to Facebook where
the users provide very little personal information on their personal user profiles. Instead users
are offered a medium of one way interactions via character limited ‘tweets’ which can be
followed and then reacted to by others with no direct relationship to each other (Davenport et
al, 2014). Instagram as a photo sharing platform is one of the fastest growing sites in the
world, recently reaching 1billion active users worldwide (Statista, 2018). The site offers
networked intimacy for a non-reciprocal audience though mobile photography and real time
event capture, converting memorable events and interests into long term keepsakes that can
also be broadcast to a wide network of individuals at the touch of a button (Abadin, 2016).
YouTube users create and upload videos about their personal life or products they use, which
then increases their following along with traffic from subscribers and anonymous viewers
(Lee and Watkins, 2016). Both these sites function solely on the distribution of user
generated content to a mass market of ‘subscribers’ or ‘followers’ through one way
communication.

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Facebook contacts are more personal and as such labelled as ‘friends’ while on more
detached one-way content sharing platforms like Twitter, Instagram and YouTube they are
known as ‘followers’ or ‘subscribers’. This indicates Facebook relationships are reciprocal
while Twitter and Instagram are not (Davenport et al, 2014).

3. METHODOLOGY
The following section will include an examination of the theoretical framework of the
proposed research, the reasons for the chosen methods and their appropriateness for this type
of study into the effectiveness of social media marketing as a sales driver in the fashion
industry. It will include information on the research and data collection methods to be used,
assumptions made along with the validity and reliability of the research.

3.2 Research Methods

Multiple research methodologies were examined in selecting an appropriate design for this
project with quantitative and qualitative methods being the two main types. Selection of a
project’s research method is the principle part of the research process. Therefore, the
requirement to understand the main features of the various methods is crucial to be able to
choose the method most suitable for a project (Collis and Hussey, 2014).
Qualitative research concentrates on examining participants’ point of view with the aim to
provide a deeper understanding of a particular population or area of study. Data is normally
collected through observations and interviews with smaller samples that quantitative
research. Although sample sizes are smaller they provider a deeper understanding of a subject
area and can provide new insights to researchers.

Quantitative research however focusses on collecting numerical data in order to explain a

theory. Data collection is done through surveys and online analytical reporting tools with
large sample sizes that are far bigger than qualitative research samples. Questions are tailored
to a format that can be easily managed and analysed statistically with this approach seen to be
more critical and logical in comparison to qualitative research (Collis and Hussey, 2014).
Through conducting an exploratory literature review on the subject area, it was found that
several studies focussed on brands, attitudes and behaviour (Brown et al, 2003; Keller, 2013;
Kim and Ko, 2010; Lee and Watkins, 2016; Mangold and Faulds, 2009; Schivinski and
Dabrowski, 2016). However the gap in empirical evidence relating to the direct impact of
social media marketing on sales performance led to the researcher dismissing the use of a

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qualitative design in favour of a quantitative method that uses numerical data to explain the
phenomenon. This method will be used to gather empirical evidence that will assist in
examining the relationship between variables; social media marketing activity and sales
online in the fashion industry.

3.3 Data Collection

There are two data types; primary and secondary. Primary data can be collected through
experiments, surveys, observations and interviews. It is acknowledged that the method of
data collection is primarily dependant on the research method and there are different
approaches for quantitative and qualitative research methods. Secondary data relates to
information collected and is provided by people or organisations other than the researcher.
Which type to use is predominantly dependant on what information is required and the
research problem being investigated. It is crucial to consider the source of any data, how it
will be collected and firstly by which method (Collis and Hussey, 2014).

This project will use secondary data sources provided by three independent online fashion
retailers from the same worldwide population. The three organisations will be providing
marketing activity reports along with online analytics and online sales conversion metrics for
analysis. For the purpose of this research they will be grouped and classified under an
organisation’s internal documents and files. As such it must be noted that the data may have
been collected for a different purpose to that required and therefore the researcher must
question the reliability of the information. In many cases secondary data is all that is needed
to solve and explain a research problem and so no primary data is required.

3.4 Data Analysis

Using SPSS and statistical analysis, the researcher will use correlation analysis to examine
the relationship between numerically measured variables with the aim of establishing
possible connections between them. If it is found that there is a resulting correlation between
two variables it means there is also a logical and consistent change in the other and as such
will adjust together over a certain period of time. If the results show a correlation then
depending on the numerical values recorded this can be found as either negative or positive.

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This research will use Pearson’s product-moment correlation coefficient, commonly denoted
as r (Puth et al, 2014) and is the measurement of correlation and ranges between -1 and +1
(depending on the correlation). -1 designates the strongest negative correlation possible and
+1 designates the strongest positive correlation possible. Consequently the closer the
resulting correlation is to either of these numbers the stronger the correlation of the data is
represented.

The researcher will measure two variables X and Y for each of the N individuals to provide a
data set (X1,Y1),…,(XN,YN), then

3.5 Reliability and Validity

The purpose of reliability is to assess and measure consistency (Heale and Twycross, 2015)
and therefore is more reliable the less that mistakes occur. The reliability of data is strongly
associated with quantitative research, with larger sample sizes offering greater reliability. It
can also be established through repeat and parallel research. Potential causes for errors could
be an incorrect data source, faulty collection practises or an ambiguous research question
which therefore could have the potential to negatively impact the reliability of the research.

This research project will be using accurate and specific data direct from three organisation’s
internal reporting systems covering large population sample sizes. These factors reduce the
risk of the researcher’s influence on the data which therefore will ensure the reliability of the
theoretical framework.

Validity can be described as the degree in which a theory or concept is accurately measured
in a quantitative study (Heale and Twycross, 2015). Therefore when the empirical results are
congruous with the theoretical framework the research validity is good and so the researcher
will have provided high validity of data.

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4. Research Project Planning and Task Summary

This project plan is naturally divided into two different sections of management for the
proposed research project. The initial subject area choice, question formulation, preliminary
literature research and proposal creation all fall into stage one; completing upon proposal
submission by 11th January 2019. Module syllabus and timetable for Postgraduate Business
Research Methods forms the inception point for the research project.

The second and final section commences upon receipt of feedback from the research proposal
and initial contact with dissertation supervisor. This section is the major undertaking of the
research project and consists of multiple components being activated and worked on at any
given time. The literature review proper will evolve as the project develops and enters into
the latter stages of the research. This will progress from the current understanding of
literature in the subject area during the initial months of the project, leading to the review
stage which identifies and collects data to see how authors accomplished their work, compare
learning methods, and finally completion for comparison and presentation to others at the
final stage of the project ready for final submission.

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