PAMANTASAN NG LUNGSOD NG SAN PABLO

GRADUATE SCHOOL
Brgy. San Jose, City of San Pablo, Laguna
Tel. no. (049) 536-7830
plspofficial@plsp.edu.ph

“ Exploring the Effectiveness of Social Media Marketing in Small Business”

A Research Paper
Presented to the Faculty
of College of Business Administration Department
Pamantasan ng Lungsod ng San Pablo
San Pablo City

Partial Fulfillment of the Requirements

for Business Research

by:

Aspa, Sweetciel M.
Carada, Tracy
Dela Cruz, Rachelle
Francisco, Janna
Hernandez, Arnel
Lucaba, John Patrick
Terrible, James Nicolas
 PAMANTASAN NG LUNGSOD NG SAN PABLO

GRADUATE SCHOOL
Brgy. San Jose, City of San Pablo, Laguna
Tel. no. (049) 536-7830
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CHAPTER I

The Problem and Its Background

The chapter includes the introduction, background of the study, theoretical framework, conceptual

paradigm, statement of the problem, hypothesis, scope and limitation, conceptual framework, and

definition of terms.

Introduction

Social media has had a great and significant impact in the business world, and extensive

research has explored the correlation between using this factor as a marketing strategy by

small businesses. As social media reaches tremendous fame in this modern age of

digitized living,. It has been put on a pedestal across varied streams for facilitating

participatory interaction amongst businesses, groups, societies, organisations, consumers,

communities, forums, and the like (The Marketing Review, 2015). Based on the Global

Social Media Statistics Research Summary 2024, 62.3% of the world's population uses

social media. The average daily usage is 2 hours and 23 minutes, making the number of

social media users globally grow from 4.72 billion in January 2023 to 5.04 billion in

January 2024. This accounts for an 8% growth of +320 million users YOY. With more

growth predicted over the rest of the year,. This gives you the opportunity to advertise

widely and reach a much wider audience.

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Using social networks as a sales and marketing tool is known as social media marketing.

Businesses that want to advertise their goods or services can do it in more ways than one

by creating an online presence and interacting with clients directly. Specifically, social

media marketing has made it possible for nearby companies to connect with potential

customers without spending an enormous amount of cash on advertising, as stated by

Dollarhide, Maya (2024).

This study aims to investigate how well social media marketing works for small

businesses in terms of encouraging customer interaction. This study looks at the different

approaches, instruments, and methods that small businesses use on social media

platforms in an effort to gain an understanding of how consumer involvement is molded

and influenced in the digital era. Comprehending the intricacies of customer involvement

within the domain of social media marketing is imperative for small enterprises to devise

efficacious tactics that gratify their intended audience and propel enterprise expansion in

a progressively cutthroat marketplace.

Background of the study

In the current digital era, social media has emerged as a powerful platform for businesses,

particularly small enterprises, to connect with their target audiences and promote their

offerings. An increasing number of small businesses are using social media marketing to

interact with customers, build brand awareness, and increase sales.

 PAMANTASAN NG LUNGSOD NG SAN PABLO

GRADUATE SCHOOL
Brgy. San Jose, City of San Pablo, Laguna
Tel. no. (049) 536-7830
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However, while social media marketing has become pervasive, there is a need to assess

its effectiveness in the context of small businesses. Understanding how social media

marketing influences key performance metrics such as brand recognition, customer

acquisition, and sales growth is essential for optimizing marketing strategies and

achieving sustainable business growth.

This study aims to explore the effectiveness of social media marketing for small

businesses by analyzing its impact on various aspects of business performance. By

examining the strategies, challenges, and outcomes associated with social media

marketing initiatives, this research seeks to provide valuable insights for small business

owners, marketers, and researchers alike, ultimately contributing to a deeper

understanding of the role of social media in modern marketing practices.

Conceptual Paradigm

This conceptual paradigm provides a structured approach for small businesses to

conceptualize and analyze the influence of social media on their operations and to

develop effective strategies for leveraging these platforms to achieve business objectives.
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GRADUATE SCHOOL
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Figure 1. The research paradigm shows the independent and dependent variables.

Statement of the Problem

This study will identify the effectiveness of social media marketing in small businesses of

BSBA-2F students of Pamantasan ng Lungsod ng San Pablo (PLSP) in the second

semester of S.Y. 2023-2024.

Specifically, this study will seek to answer the following question:.

1. How does social media marketing impact in terms of:

1.1 the visibility; and

1.2 Reach of small businesses

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2. What role does social media marketing play in terms of:

2.1 brand awareness; and

2.2 customer engagement

3. How does social media marketing influence, in terms of:

3.1 consumer behavior

3.2 purchasing decision; and

3.3 brand loyalty

4. What are the key success factors and challenges associated with implementing

effective social media marketing strategies for small businesses?

Hypothesis of the Study

The following hypothesis is proposed in this study:

1.
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Scope and Limitations of the Study:

This study wanted to prove that social media is an effective marketing strategy for small

businesses. The coverage of this study includes correlations set up among the systems

that are mentioned. This is limited to the effectiveness of social media marketing in

Pamantasan ng Lungsod ng San Pablo (PLSP) during the S.Y 2023-2024

Definition of Terms

Brand awareness - Brand awareness refers to the familiarity of consumers with a

particular product or service.

Brand loyalty - Brand loyalty is when customers continue to purchase from the same

brand over and over again.

Consumer behavior - Consumer behaviour is the study of individuals, groups, or

organisations and all the activities associated with the purchase, use, and disposal of

goods and services.

Customer engagement - customer engagement is the ongoing cultivation of a relationship

between the company and the consumer that goes far beyond the transaction.

The Digital Age - often known as the Information Age, refers to a historical era and

information technology - based economy originating in the twentieth century.

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Exploring - typically refers to the act of investigating or examining something with

curiosity or interest, often with the intent of learning or discovering new information or

experiences.

Effectiveness - refers to the degree to which something is successful in producing the

desired result or outcome. It often implies efficiency and the ability to achieve goals or

objectives with minimal waste of resources.

Social Media Marketing - Social media marketing is the use of social media platforms

and websites to promote a product or service.

Small Business - Small businesses are types of corporations, partnerships, or sole

proprietorships that have a small number of employees and/or less annual revenue than a

regular-sized business or corporation.

Purchasing decision - A purchase decision is the thought process that leads a consumer to

identify a need, generate options, and choose a specific product and brand.

Visibility - visibility is the measure of the distance at which an object or light can be

clearly discerned.