Chapter I

Introduction

Rationale of the Study

Facebook describes itself as a social network that links users to their friends and

those who live, work, or attend school nearby. It is used by people to communicate with

friends, share text, audio, and video content, and discover more about new acquaintances.

It offers a user-friendly platform that can be accessed from practically anywhere in the

world. It can be used by businesses to market their goods and stay in touch with their

customers. It is excellent for maintaining contact with many of individuals. The typical

Facebook user has 130 Facebook friends and spends 700 minutes online each month

(Branckaute, 2010).

Users frequently connect onto Facebook because it recently held the top spot for

the most visited site (Clark, 2016). As a result, the Facebook platform offers advantages

to both customers and businesses. It is a way to stay connected 24/7 with the ability to log

on through computers, laptops, iPads, and mobile devices, and is regarded by many

businesses as a effective strategy to employ when communicating with customers

(Nelson-Field et al., 2012).

The modern marketing strategy has fast transformed as a result of social media. It

has created new chances and connections between marketers and other consumers with

the goal of raising consumer brand awareness (Comscore Media, 2009). The Pew

Research Center discovered that social networking sites like Facebook are used by 82%

of online adults ages 18 to 29, 79% of online adults ages 30 to 49, 64% of online adults
ages 50 to 64, and even 48% of online adults ages 65 and older. As a result, social media

marketing has grown to be a more widespread method of product promotion and

customer relationship building.

According to Statista, an online platform specialized in market and consumer data

that no other social network can provide your business with a comparable level of

potential exposure as Facebook, which has over 2.9 billion monthly users. When

compared to other platforms, Facebook offers the most integration tools, such as follow

buttons, account logins, and photo sharing, as it was the first and biggest social media

network to experience mainstream success. It enables people to get in touch with and

obtain information directly from businesses. These features make it feasible for people to

communicate quickly and directly with small businesses. These capabilities enable

businesses to reach out to more customers, making it simpler to convert them with a

single click.

Consumers can learn more about items benefits and brand values through

advertising. It makes it possible to boost small businesses reputation. It can influence

consumer impressions by using advertisements to elicit particular feelings or to share the

origin of the brand (also known as brand image). It helps to establish consumer trust and

loyalty and brings a business target market one step closer to closing a transaction as they

develop a stronger connection to the brand.

Advertising helps small businesses market more effectively and reaches the

correct audience with messages that are positive and well-targeted and turn potential

customers into paying customers. In order to increase brand awareness or encourage

returning business from devoted customers, it also aids in retargeting audiences. When it
comes to providing information and analytics on the effectiveness of ads, Facebook has

no restrictions. Even in monitoring and evaluating the performance of adverts, it offers a

great deal of power. It can focus on people based on their interests, habits, demographics,

ages, relationships, regions, or languages.

Conceptual Background

The main focus of this study is the effectiveness of Facebook Advertising as the

dependent variable. Based on the conceptual framework, the use of Facebook advertising

contributes advantages to clothing shops' sales growth, customer retention, supply and

demand, advertising new products, and enhancing shop reputation. These are the

independent variable of the study.

Sales growth is the metric used to assess how well the sales force performed in

boosting revenue over a pre-specified time frame. It has a direct correlation to revenue,

profitability, and is a key indicator of the strength of a sales staff. If a company's

heartbeat is its sales, its sales growth is its heart rate monitor, showing whether sales

targets are being met. It is essential to comprehend this measure in order to develop and

carry out a business strategy.

Customer Retention is a metric that gauges a business' capacity to retain

customers over time and gauges customer's loyalty. Businesses use a variety of strategies

to improve customer experiences and increase customer retention by lowering the

number of consumers that leave the company in a given time frame. It can also represent

or forecast consumer contentment, repurchase behavior, customer involvement, and

emotional attachments to a business in addition to revealing the amount of devoted

customers.

The relationship between supply and demand is crucial because it helps to

determine the costs and availability of most goods and services in a given market.

Changes in quantity and price affect both supply and demand. The amount of supply
produced and the number of items sought will be significantly impacted by changes in

price and quantity. The link between supply and demand balances out at some point in

the future.

Advertising new products promotes a brand's specific product rather than the

brand itself. Instead of emphasizing brand reputation or brand awareness, these

advertising concentrate on selling products based on their characteristics and benefits.

These advertising, however, aim to persuade viewers that a business' product is better

than competing ones on the market. It aims to increase consumer demand. This includes

raising consumer interest in the product and helping them become aware that it exists.

Additionally, the goal of product promotion is to influence customers to buy something

right away after seeing it.

Enhancing shop reputation makes the reputation stronger and a positive one. The

more people trust a shop and support it, the better its reputation is. Customers who trust

the business and are likely to buy the product or service are those who have a positive

shop reputation both online and offline. The secret to a successful shop reputation

strategy is realizing that the owner doesn't need to wait for consumers to build their own

opinions of the shop. Instead, by constructing the shop's experiences around the

requirements, wants, beliefs, and views of the target audience.

Customers become more aware of new products through advertising. It piques

their interest in the product and improves the shop's reputation. People will trust a

business more and stay loyal to it over time if it has a good reputation. Devoted

customers will undoubtedly purchase the goods and encourage others to do the same,

assisting in achieving the desired sales. Due to the fact that changes in quantity and price
have an impact on both supply and demand, strong sales growth has a significant impact

on these variables.
Conceptual Framework

Effectiveness of Facebook Advertising

Sales Customer Supply and Advertising Enhancing

Growth Retention Demand New Shop
Products Reputation

Figure 1: Conceptual Framework of the Study

 The Problem

Statement of the Problem

This study aims to determine and to assist how using Facebook advertising as a

marketing strategy can be effective in small scale clothing businesses in Poblacion,

Danao City.

Specifically, it sought to answer the following questions:

1. What is the demographic profile of the respondents in terms of

1.1. Name;

1.2. Age; and

1.3. Sex?

2. How much do you earn each month?

2.1 January 2022;

2.2 February 2022;

2.3 March 2022;

2.4 April 2022;

2.5 May 2022;

2.6 June 2022;

2.7 July 2022;

2.8 August 2022; and

 2.9 September 2022?

3. What type of Facebook Advertising being used?

3.1 Facebook News Feed

3.2 Facebook Like

3.3 Facebook Page

3.4 Facebook Marketplace

3.5 Facebook Group

3.6 Messenger

4. What are the benefits of Facebook advertising to the small-scale clothing shops in

terms of:

4.1 Sales Growth

4.2 Customer Retention

4.3 Supply and Demand

4.4 Advertising New Products

4.5 Enhancing Shop Reputation

Significance of the Study

This research will determine the effectiveness of using Facebook advertising as an

marketing strategy to small-scale businesses, especially in this generation where

everyone is mostly relying on technology and internet.

This study will be beneficial to the following:

The Owners and Staffs of the Shop. This study will help the owners and staffs of the

shop in determining the effectiveness of using Facebook advertising in selling their

products. This study will also serve as the clothing shop’s basis in determining whether

their sales increased or decreased as they use this kind of marketing strategy.

The Entrepreneurs. This study will give the entrepreneurs an idea on how can they

improve their business in terms of their sales, their marketing strategy and their company.

The Customers. This study will help customers to reflect how effective platform

Facebook is and to trust and purchase more on Facebook.

The Future Researchers. This study can be served as a guide and reference for the

future researchers once they conduct a research study dealing with this kind of topics.

Objectives of the Study

•To determine how effective using Facebook advertising as an marketing strategy on

small-scale businesses.

•To assess whether Facebook advertising can be effective on increasing the shop’s

visibility and their sales.

•To evaluate whether the clothing shop’s sales increased or decreased as they used

facebook advertising as their marketing strategy.

•To prove that facebook advertising can be helpful and convenient on promoting

products.

Scope and Limitations

This study is conducted primarily for the purpose of determining the effectiveness of

Facebook advertising on small-scale businesses in Poblacion, Danao City. This also

sought to determine how the shop’s sales increase as they used Facebook advertising

from the month of January to September. This study will be done with survey

questionnaire as a survey and reference.

Definition of Terms

The key terms in the study are given the following operational definitions:

Effectiveness- it is the capacity to achieve a successful outcome.

Facebook Advertising- a social network's advertising platform with the goal of

promoting goods and services through articles or advertisements in text, image, or video.

Facebook- it is an app that enables us to connect with on another easily because of its

feature.
Advertising- a marketing strategy that allows someone to promote their goods, products

and services.

Small-scale – it is a business or a company that only consist a small and limited number

of employees.

Business- it is an organization or entity that sells goods, products and services.

Seller- the person who sells or promotes a product, goods or services.

Customer- the person who buys the products, good and services.
 Chapter II

Review of Related Literature and Studies

Review of Related Literature

According to Wiese, M., Martínez-Climent, C., &Botella-Carrubi, D. (2020). Social

network use is a worldwide phenomenon, with Facebook reigning supreme as the most

popular social network service. Although Facebook is widely used in both developed and

developing economies, the enormous marketing potential of Facebook’s full range of

advertising tools (paid and free/organic) has received little attention. This cross-country

study looks at Facebook advertising. The theoretical foundation is provided by social

influence theory and regulatory focus theory. Data were gathered for a sample of 802

respondents (South Africa n = 401; Australia n = 401). The results of structural equation

modeling show that there are significant relationships between the constructs considered

in the model in both a developed context (Australia) and a developing context (South

Africa) (privacy concerns, trust, importance of control, advertising intrusiveness,

attitudes toward ads, advertising value, attitudes toward Facebook advertising, and

behavior toward the advertised and ad message). However, these contexts differ in terms

of users’ avoidance strategies.

Dehghani, M., &Tumer, M. (2015). The current study sought to investigate the

effectiveness of advertisements in increasing consumers’ purchasing intent on Facebook

in 2013. In terms of goals, it is an applied study, and in terms of methodology, it is a

descriptive survey. All undergraduate students at Cypriot universities were included in

the statistical population. To compare and analyze the effectiveness of advertisements, an

11-item researcher-created questionnaire was used. SPSS17, the parametric statistical

method of t-test, and the non-parametric Friedman test were used to analyze the data.

According to the findings of the study, Facebook advertising had a significant impact on

brand image and brand equity, both of which factors contributed to a significant change

in purchasing intention. The modern marketing strategy has quickly changed as a result

of social media. In order to raiseconsumer brand awareness, it has established a

connection between marketers and other consumers, opening up new possibilities and

opportunities. Advertising professionals have begun incorporating social networking

website appeals into their ads in order to grab consumers’ attention and cater to

customization of their needs. They want to foster free advertising and encourage users to

spread the brand’s image. Investigating why there might be a good reason to have high

expectations for social media as a marketing tool and what benefits a Facebook presence

might have over more conventional marketing strategies is therefore beneficial.

Ertugan, A. (2017).Marketers are increasingly utilizing Facebook. Naturally,

research in this field has increased in recent years. Businesses must comprehend

Facebook and its advantages in achieving effective advertising campaigns. More research

is needed to determine how effective social media, particularly Facebook, are for

advertising. The purpose of this study was to determine whether there is a link between

the effectiveness of Facebook advertising and the benefits gained from such advertising.

Statistical reasoning was used to assess the magnitude of two advertising benefits and

their relationship in developing effective Facebook advertising campaigns. Pearson’s

bivariate correlation and linear regression analysis were applied to data obtained from an

undergraduate student survey. The effectiveness of Facebook advertising was compared

to the advantages of “customer relationship management” and “promoting new

products.” The findings confirmed that Facebook is regarded as a powerful tool for

marketing and that it strongly correlates with the advantages of “customer relationship

management” and “promotion of new products.”

Flatten, T. C. (2015). Online social networks have put the current understanding of

the effectiveness of advertising to the test. The authors of the current study examined four

types of advertising stimuli on Facebook—“stream” (news feed) impressions, page

views, “Likes,” and user contributions—to ascertain their short- and long-term effects on

sales using a year’s worth of aggregate-level, daily data from a significant German e-

commerce retailer. It was possible to incorporate a direct-aggregation method that took

into account the lags between user activity and sales effects thanks to access to the data.

The changes brought about by new online channels are reflected in this research, which

expands on an earlier framework for studying how advertising functions.

Duffett, R. G. (2015). Social media has permanently changed how society

communicates and has changed attitudes and perceptions. The widespread use of

Facebook has changed how people connect with one another, with marketers, and with

brands in a creative way that has changed the way we see the world. However, in a

developing nation like South Africa, research on Facebook is still in its infancy. Since

Generation Y represents a sizable portion of the consumer population, marketers should

pay close attention to how they feel about social media advertising. The question of

whether the largest social media platform effectively reaches young adults in South

Africa and what impact it has on their cognitive attitudes, which affects their purchasing

behavior, has been raised as a result. The findings imply that Facebook advertising has a
positive impact on Generation Y’s awareness and knowledge levels as measured by the

hierarchy-of-effects model in South Africa. The study is useful for marketers who want to

use this potent channel to reach this wavering cohort.

WWH Cheng, ETH Lam, DKW Chiu (2020).Social media like Facebook have

become popular tools for different organizations like libraries in Marketing practice. To

build relationships with library users, libraries hope social media can engage its user

communities actively with their collections, services, and activities. This article aims to

employingquestionnaire to assess the success of using social media as a platform for

marketing contrasting the viewpoints on the University of Hong Kong Libraries’ (HKUL)

Facebook page of academic staff and students. The circumstances of HKUL’s Facebook

page right now and the causes. In order to suggest more effective tactics, factors

influencing visitors’ interest in and involvement on the page are examined.The future

requirements of library users in order for the library to meet those demands. Various

academic libraries can include fresh knowledge from the study.

Kim (2008). The influence and appeal of social networks are growing. Personalized

more than ever, customer communications are now feasible. Social networks are

applicable to daily life, as evidenced by the fact that teenagers are the group most likely

to adopt them, followed by a growing group of white-collar employees and people

between the ages of twenty-five (25) and thirty-four (34). The effects of this expanding

trend on marketers and advertisers are significant. Without understanding the efficiency

of various social networks, advertisers will struggle to build meaningful relationships

with customers.
 Corvi and Bonera (2010). The importance of comprehending what advertising

effectiveness is and how it is measured cannot be overstated given the amount of money

spent on advertising. Nevertheless, it is considerably more crucial to understand what

makes advertising effective because this way, any unnecessary spending may be

prevented. Since the turn of the century, social media use has grown, making this

increasingly difficult. The interaction of advertising with other company variables like

marketing, financial choices, and environmental variables like competition, in their

opinion, makes it difficult to gauge the success of advertising. They also think that the

effects of advertising have long-term effects that are sometimes difficult to quantify at the

time of costs and that the effects of advertising cannot always be quantified.

Review of Related Studies

Chiu, Y. P. (2022). The purpose of the current study is to determine whether self-

monitoring influences the Facebook advertising’s ability to persuade. This study used two

different experimental designs in its two to investigate the relationship between users and

advertising, claims of advertising stimuli are used in an experimental setting. The

findings of this study demonstrated that high (low) self-monitors increase the likelihood

of peripheral with image-focused (product-focused) Facebook advertising, users

demonstrated a more positive attitude toward advertising and purchase intent. This essay

offers a review of the main viewpoints in the Facebook advertising is moderated in part

by the ELM concept and self-monitoring. Managerial and theoretical the implications of

Facebook advertising’s strategic context and persuasion were discussed. The results can

also offer information that could help advertisers make their social media marketing plans

better.
 Rebaz Khaleel Khorsheed, B Othman, ZM Sadq (2019). The purpose of this study is

to investigate the effects of effective marketing through social media platforms. 64

Bazary online consumers who use social media to buy their products and services were

given a survey questionnaire that was divided into three parts and contained 21 questions

in order to perform this study. Data were quantitatively evaluated with the SPSS 20

application.The study indicated that there is a statistically significant association between

content quality and integration with other media platforms on effective marketing, and

that all consumers use social media sites for buying, with Facebook being the most

popular platform among them.

Brown-Peterson, AJ (2017). This study looked at how Missouri’s small companies

use Facebook as a strategic and effective marketing strategy. There are a variety of

features accessible on Facebook, therefore the research was required to identify those that

benefit small businesses the most. How Missouri’s small business owners could make the

most of their limited time and expertise to develop and put into practice efficient

Facebook marketing tactics was the issue under investigation. The goal of this study was

to learn how Missouri small businesses develop and use their Facebook marketing

strategies. The findings of this study are applicable to all Facebook-using businesses,

whether they be little or large, nonprofit organizations, or any other types of businesses.

Jiro Miguel Garbes, Don Carlo Harnecillo, Celine Almira Yu, Earl Pantoja

(2022).Today’s online landscape is flooded with subscription-based Video-on-Demand

streaming services (SVODs). Although consumer choice may differ, consumer

acceptance is necessary for these SVODs to succeed. This study looked at Facebook

adverts, social pressure, customer attitude, and purchase intention as the driving variables
in order to target millennials, who make up the largest segment of SVOD consumers. In

order to ascertain the importance between factors influencing a consumer’s propensity to

purchase SVODs, 196 respondents who were selected using convenience sampling

participated in this study. The findings indicate that millennials’ intentions to buy SVODs

in Central Luzon are highly influenced by social pressure and attitude. SVOD firms

should create Facebook advertisement material that is relevant to their services, according

to the researchers’ advice.

Gema W.Anastacio, Vanessa M.Dacalos, Al-Radjid F.Ismah, AMRE Tadeo

(2021).This study set out to evaluate the efficacy of social media as a marketing tactic.

The study's specific objectives were to determine the following: (a) the most popular

social media platforms used in marketing strategies; (b) the effectiveness of social media

platforms as marketing strategies; (c) the significant difference in the level of

effectiveness of social media platforms as marketing strategies when respondents' data

were grouped according to their demographic profile variables; and (d) the most popular

social media platforms used and the effectiveness of social media in marketing strategies.

The descriptive-correlational method was used in the investigation. The findings

indicated that Facebook and YouTube were the social media platforms most frequently

used in marketing strategies. Additionally, social media platforms were highly effective

when used as a marketing tactic. The hypothesis was disproved since there was no

substantial difference in the effectiveness of social media platforms as a marketing

approach. The hypothesis was accepted since there was a strong correlation between the

most popular social media platforms used and how well they worked for marketing

strategies. It was suggested that Universidad de Zamboanga’s top administration make a

long-term investment in social media platforms for a variety of marketing and

advertising.

Arthelo P. Palma (2016). Marketers were wary of Facebook’s 2014 decision to start

filtering out unpaid promotional content in user news paid since it might only result in

higher costs for online paid advertising. Facebook’s effectiveness has been extensively

investigated, but more research is needed to determine how it functions as a free

marketing tool now that new rules and regulations have been establish. Additionally, a

variety of discussions about consumer behavior on Facebook have been attempted, but

the personal context of desire in line with emotions and wants has received less attention.

By using articles containing content on wants and emotions, this study aimed to

investigate consumer behavior in the context of personally posted threads on Facebook.

Organic reach was discovered to enhance the results of a negative binomial regression

study.

Alice Mazzucchelli, Roberto Chierici, Angelo Di Gregorio, Claudio Chiacchierini

(2021). Social networks are a key factor in the digital revolution because they give

businesses the chance to promote their goods and services to global customers and

suppliers, build long-lasting relationships with them, and boost their own

competitiveness. The study examines the role played by Facebook in online advertising,

community building, social CRM implementation, market research, and sales channel

replacement for physical presence in firms’ performance in international export, both in

terms of managers’ perceptions and Facebook buy button conversion rate. A survey-

based empirical examination of 105 global fashion companies was done. Building brand

communities and having dialogues significantly influence foreign export performance,

according to the results of multiple regression models, but Facebook advertising

outcomes are inconsistent.

Cara Margarita E. Camara, Razel L. Lim, Francis Luigi S. Natanauan, Jason

Emmanuel S. Pascual, Ma. CP Assumpta C. Marasigan (2018). The goal of this study

was to identify which of the seven Facebook content orientations, which were adapted

from Camara et al. (2017), is most effective in evoking positive attitudes toward the

message, the brand, increasing the likelihood that consumers will buy products, and

increasing the willingness of consumers to engage (Rog, 2014) for three social

enterprises: Bayani Brew, AKABA Ltd. Design Co., Theo & Philo, and the study also

aimed to ascertain whether the Facebook content orientations affected the messages sent

by these businesses. Furthermore, the study sought to determine whether social business

branding influenced how Facebook content orientations influenced the message’s

effectiveness. 387 De La Salle University students participated in the researchers’ survey.

They discovered that the most beneficial content using Friedman Twoway ANOVA.
 CHAPTER III

Research Methodology

This chapter presents the type of research: research design, research environment,

research respondents, research instrument, research procedure, and the statistical

treatment of the study.

RESEARCH DESIGN

The research used the descriptive-normative method. For it provides data and information

and finds out which aspects that the subject is needed to be improved. The survey was

conducted by providing a survey questionnaire to a number of respondents from clothing

shop owners in Danao City. The collected data from the survey questionnaire using

purposive sampling from identified respondents. Furthermore, the questionnaire was

conducted with existing business firms that sell some products such as; clothes, footwear,

swimwear, bags, and etc.

RESEARCH ENVIRONMENT

This study was located and conducted in Danao City. It exists for multiple purposes such

as; creating new jobs and supporting other local businesses.

RESEARCH RESPONDENTS

The researchers respondents of the study were the selected clothing shop owners in

Danao City. The researchers used purposive sampling method. The researchers identify

(10) respondents. A total of sample population is 10 respondents.

RESEARCH INSTRUMENT

The researchers used a survey questionnaire as a main data-gathering and to determine

the The Effectiveness of Facebook Advertising to the Small-Scale Clothing Shops in

Danao City and it’s answerable on a four- point scale; Strongly Agree, Agree, Disagree,

and Strongly Disagree. Each scale has a corresponding indicator.

RESEARCH PROCEDURE

The researchers made a transmittal letter addressed to the Teachers and Principal of

Asian Learning Center School, and Mayor of Danao City to seek permission to allow

the researchers to conduct the study to the clothing shop owners and allow researchers to

allocate the researcher-made questionnaire for the data gathering to the selected clothing

shops owner.
 Survey Questionnaire

Name: Sex: Male

Age: Female

I. DIRECTIONS: Please indicate your shop’s gross monthly income in the following

timeline.

January 2022 – __________

February 2022 – _________

March 2022 – ___________

April 2022 – ____________

May 2022 – _____________

June 2022 – _____________

July 2022 – _____________

August 2022 – __________

September 2022 – ________

II. DIRECTIONS: Put a check mark (/) in the box to the answers that suits you best.

Check all that apply.

1. What type of Facebook Advertising do you use?

Facebook News Feed

Facebook Like

Facebook Page

Facebook Marketplace

Facebook Group

Messenger

III. DIRECTIONS: For each statement, kindly put a check on the box whether you

Strongly Agree, Agree, Disagree, and Strongly Disagree on what is listed below.

1.Sales Growth

Strongly Agree Disagree Strongly

Agree Disagree

Advertising supports the growth of

small businesses.

Small businesses can enhance sales

by using Facebook Advertising

2. Customer Retention

Strongly Agree Agree Disagree Strongly

Disagree

Facebook advertising aids in

growing consumer base.

Advertising helps in increasing

the loyalty of existing

customers.

Advertising helps in replacing

lost customers.

Advertising helps in

encouraging to buy more of a

business’ product.

Facebook mobile application

platform enables delivery

options to customers.
3.Supply and Demand

Strongly Agree Disagree Strongly

Agree Disagree

Using Facebook advertising

increases supply.

Advertising aids in boosting product

demand.

4. Advertising New Products

Strongly Agree Disagree Strongly

Agree Disagree

Facebook advertising allows easier

spread of new products to targeted

customers.

Facebook enables effective word of

mouth advertising.
5. Enhancing New Products

Strongly Agree Disagree Strongly

Agree Disagree

Facebook advertising enables

customer connection with the sellers

which results in brand credibility.

Facebook helps spread brand image

and reputation attracting potential

customers.

Facebook advertising helps register

the products in the minds of the

target customers.

Facebook can help a brand to grow

quickly and cheaply reaching

worldwide customers.
THE EFFECTIVENESS OF FACEBOOK ADVERTISING TO THE SMALL-
SCALE CLOTHING SHOPS IN POBLACION, DANAO CITY

A Research Study Presented to the Faculty of the Department of Senior High

School

Asian Learning Center Inc. Danao Campus

Danao City, Cebu, Philippines

In Partial Fulfillment of Grade 12 Requirements for Practical Research 2

by:

Benitez, Angeline S.

Capangpangan, Nikki Jane D.

Guisando, Meriane Jane A.

Miñoza, Jasmine Ann B.

Parra, Benedecto Rey P.

Tiansing, Keisha Kaye Q.

Toledo, Judy D.

October 2022