UNIVERSITI TEKNOLOGI MARA
LSS ACADEMY SDN BHD: “THE EVALUATION OF SOCIAL MEDIA EFFECTS ON MARKETING COMMUNICATIONS FROM CONSUMERS’ PERSPECTIVE”
PREPARED FOR: ENCIK ZULKEPLY KAMARUDDIN
PREPARED BY: NURSHEILA BINTI AHMAD 2008500133
BACHELOR OF BUSINESS ADMINISTRATION (HONS) (MARKETING) FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA SHAH ALAM
LETTER OF TRANSMITTAL
8 NOVEMBER 2010 Encik Kamal Mohd Nor The Head of Program Bachelor of Business Administration (Hons) (Marketing) Faculty of Business Management, Universiti Teknologi MARA 40450 Shah Alam, Selangor Darul Ehsan
Dear Sir, SUBMISSION OF PROJECT PAPER Attached is the project paper entitled “LSS ACADEMY SDN BHD: THE EVALUATION OF SOCIAL MEDIA EFFECTS ON MARKETING COMMUNICATIONS FROM CONSUMERS’ PERSPECTIVE” to fulfill the requirement as needed by the Faculty of Business Management, Universiti Teknologi MARA Shah Alam for your kind perusal. Thank you.
Nursheila binti Ahmad 2008500133 BBA (Hons) (Marketing)
BACHELOR OF BUSINESS ADMINISTRATION (HONS) (MARKETING) FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA SHAH ALAM
“DECLARATION OF ORIGINAL WORK”
I, Nursheila binti Ahmad (NRIC: 850317-14-5760) Hereby, declare that, i. This work not previously been accepted in substances for any degree, locally or overseas and it is not being concurrently submitted for this degree or any other degrees. ii. iii. This project paper is the result of my independent work and investigation, expect where otherwise stated. All verbatim extracts have been distinguished by quotation marks and sources of my information have been specifically acknowledged.
Date: 8 NOVEMBER 2010
T. Dr. supervision. Encik Zulkeply Kamaruddin and also dedicated examiner. Puan Norliah Abd Aziz for their invaluable support. A. brilliant ideas. my sincere thanks and appreciations to my beloved friends and colleagues. I would like to thank Allah S.W. my supervisor. I am as ever. Yours sincerely. I am heartily thankful to all my Managing Director in LSS Academy. I would like to express profound gratitude towards my supportive advisor. for giving me opportunity and strength to accomplish my project paper on “LSS ACADEMY SDN BHD: THE EVALUATION OF SOCIAL MEDIA EFFECTS ON MARKETING COMMUNICATIONS FROM CONSUMERS’ PERSPECTIVE”. and dazzling suggestions for my research. I offer my regards and blessings to all the respondents and for those who supported me in any respect during the completion of this project paper. Last but not least.Aruleswaran. Nursheila binti Ahmad 2008500133 BBA (Hons) Marketing
. encouragement. guidance and support from the initial to the final level enabled me to develop an understanding of the subject. Penton Wong (IT Manager) and all my colleagues whose encouragement. who shared their knowledge. Thank you. Denison Chua (Sales & Marketing Manager). especially indebted to my parents.ACKNOWLEDGEMENTS First and foremost. Not forgotten. and experiences with me. for their love and strong support throughout my life.
9 DEFINITION OF TERMS 2.7 HYPOTHESIS 1.1 SOCIAL MEDIA 2.8 LIMITATIONS OF THE STUDY 1.TABLE OF CONTENTS LETTER OF TRANSMITTAL DECLARATION OF ORIGINAL WORK ACKNOWLEDGEMENT TABLE OF CONTENTS FIGURES AND TABLES ABSTRACT EXECUTIVE SUMMARY TITLE 1.0 2.1 MISSIONS 1.3 PRODUCTS 1.5 AWARENESS OF SMP
.2 BACKGROUND OF THE STUDY 1.0 INTRODUCTION 1.4 INTERACTIONS THROUGH SMP 2.1 BACKGROUND OF THE COMPANY 1.3 SOCIAL MEDIA MARKETING 2.4 SIGNIFICANCE OF THE STUDY
2 3 4 5 7 8 9 PAGES
12 14 16 17 23 26 28 29 31 33 34 35 40 45 48 51 54 58
1.2 WEB 2.1.5 RESEARCH OBJECTIVES 1.1.0 LITERATURE REVIEW 2.2 WHY COMPANY INVEST WITH LSS ACADEMY 1.6 THEORETICAL FRAMEWORK 1.3 PROBLEM STATEMENT
5 DATA ADMINISTRATIVE AND ANALYSIS 4.1 DESCRIPTION AND JUSTIFICATION OF THE METHODS 3.2 RESEARCH DESIGN 188.8.131.52 DEMOGRAPHIC PROFILES 4. JOINER.2.2 AWARENESS OF SMP 4.0 –WEB 184.108.40.206 FINDINGS AND ANALYSIS 4. SAMPLING TECHNIQUE) 3.4 RELIABILITY AND VALIDITY 3.0 RESEARCH METHODOLOGY 3.0 CONCLUSIONS AND RECOMMENDATIONS BIBLIOGRAPHY APPENDICES
75 76 77
82 88 90 93
.0 CITIZENS 3.3 TARGET POPULATION AND SAMPLING DESIGN (SAMPLING FRAME.2. SPECTATOR.2 THE QUESTIONNAIRE DESIGN 3.1 INTRODUCTION 3. COLLECTOR.4 FREQUENCY TABLES FOR TECHNOGRAPHIC PROFILES OF SMP USERS –CREATOR.1 DATA COLLECTION METHOD (PRIMARY AND SECONDARY DATA) 3.6 CONSUMER 2.3 INTERACTIONS THROUGH SMP 4.2. AND CRITIC 5. SAMPLE SIZE.
3 Table 4.6 Table 4.FIGURES AND TABLES
Table 2.2 Table 4.2 Figure 2.1 Figure 2.7 Table 4.1 Table 4.8 Table 4.5 Table 4.1 Table 4.0 Service Percentage of Gender for Social Media Users Percentage of Age Group for Social Media Users Percentage of Races for Social Media Users Percentage of Nationality for Social Media Users Percentage of Monthly Income for Social Media Users
.1 Figure 4.4 Figure 4.9 Figure 1.1 Figure 2.2 Figure 4.3 Figure 4.3 Figure 4.5
Online Community Needs Frequency Table of Gender for Social Media Users Frequency Table of Groups of Age for Social Media Users Frequency Table of Races for Social Media Users Frequency Table of Nationality for Social Media Users Frequency Table of Monthly Income for Social Media Users Frequency Table of “Do you aware of SMP?” Frequency Table of “Do you / your organization use SMP tools?” Frequency Table of “How long have you been using this tool?” Frequency Table of “Are you familiar with the concept of UGC? Theoretical Framework Key Social Platforms The Closed Loop of Needs Participation Model of Web 2.4 Table 4.
Web 2. social media marketing. It defined the main social media tools and tested the consumer perceptions about the possible practices. and also the identification of consumer’s profile of social media in Malaysia. Design / methodology / approach – The quantitative research was conducted by arranging consumer survey among social media users. Research Limitations / Implications – The research was designed to test only the users of Social Media Properties (SMP). The deductive logic was used to verify the hypothesis.
.0. Originality / Value – The conducted study added the knowledge to the indicated information gap in academic literature regarding the social media usage for marketing campaigns from the consumer perspective.ABSTRACT Purpose – The evaluation of social media as affective marketing
communications tool and channel. The hypotheses were proven that social media can be a valuable tool and channel for marketing communications. marketing communications. it gathered the needed data to help marketers in their search for suitable tools when marketing in social media environment. Findings – The general Malaysian consumer profiles were identified. Even though. Keywords – Social media.
EXECUTIVE SUMMARY Social media is a conversation supported by online tools. A rapidly increasing segment of marketers are gaining the experience required to advance from novice to competent practitioner capable of achieving social marketing objectives and proving ROI. An important transition in the use of social media for marketing purposes is taking place. In the year ahead. They jumped into this new medium thinking tactically about the latest social media platforms they could add to the mix rather than thinking strategically about the objectives they needed to achieve. People are not just demographics anymore. Social media has opened a whole new world of possibilities for marketers. There is no denying that social media is changing the way companies communicate in the pursuit of brand building and commerce. Facebook. and other social media platforms. marketers have been captivated by the ample hype about Twitter. In the past year. but some companies do it better than others. Their reaction was. and staying abreast of its impact and potential is critical to the success of our business. Every company seems to be jumping onto the social media bandwagon. blogs. we see social marketing maturing to the point where a majority of organizations will be in transition from the trial phase to the strategic phase of the learning curve. for the most part. we need to understand that relationships are more powerful than marketing. Social media is continuously evolving. counter-intuitive to proven marketing principles. We see marketers first researching the medium (starting with resources like this report) and monitoring audiences to determine
. to connect with them.
These marketers report inadequate support from traditional marketing vendors in their SMM efforts. as traditional agencies often try to apply traditional tactics in an online environment that is typically hostile to those attempts. Furthermore. detailed planning. ‘viral’ channel that exists outside the organization’s primary marketing and advertising initiatives. community focused websites. as a communications medium.
. make it an inadequate long-term SMM strategy.0. the lack of dedicated time.realistic objectives. complementing and enhancing the results from other efforts and increasing ROI for the entire initiative. execution. Early attempts to integrate social media into the marketing mix have often treated social media marketing (SMM) as an experimental. and expertise in the medium hinders many companies from developing social media as a more robust marketing and advertising channel that can be integrated with the rest of their marketing plan in cross-channel campaigns. resources. the unpredictable nature of viral success and the uneven return on investment (ROI) when such efforts are successful. companies are just beginning to tap the potential of collaborative. In addition. Last but not least. and reporting of SMM by an interactive agency with SMM expertise can make social media a viable and powerful channel within an integrated marketing campaign. These viral initiatives demonstrate a willingness to innovate and can provide excellent feedback on extreme changes in creative direction. known collectively as social media or Web 2. then formulating tactics. However. while companies increasingly understand the need for ongoing participation in social media. and implementing tools for accomplishing those objectives.
Arul Aruleswaran.1. technology and cultural change management to accomplish. an MSC Status Company. Kirtland Leadership Propriety Ltd. LSS Academy is creating a record of successful implementation of Lean Six Sigma whilst building the thought-leading practices in the critical areas of value creation. LSS Academy’s deep. has successfully provided consultancy services for several international clients.1 Background of the Company
Quality + Speed X Fusion = Sounder Bottom Line Lean 6 Sigma is the de-facto methodology in the market today for organizations to adopt continuous improvements and drive towards maximized returns to the share holders.
. building the thought-leading practices in the critical areas of value creation and superior shareholder returns. achieve. LSS Academy is creating a record of successful consultancy. and sustain greater returns of shareholder value and returns. founded in 2007 by Dr. value-based management expertise provides them with a clear framework to connect value creation priorities to Lean 6 Sigma project planning and execution initiatives.
LSS Academy Sdn Bhd. The LSS Academy’s team formerly operated within IQL Consulting and partner. Lean Six Sigma (LSS) Academy Sdn Bhd is a thought leader in applying deploying Lean 6 Sigma to product and service firms in South Pacific & South East Asia.0 INTRODUCTION
1. aims to create the foundations in capability.
innovations. and organizational –that creates a sustainability effect on the capability to grow and succeed in a changing environment. and complexity elimination. and the personnel that are driving towards continuous improvement. organizations.LSS Academy delivers the strategic insight and execution methodology that is required to surpass the goals of growth. managerial.
LSS Academy’s unique value creation approach is to build business culture by addressing all four leadership levels: personal. speed and cost to businesses.
virtually 100% of our clients are willing to serve as references. innovative solutions to their clients to
help them create strategic insight. This organization is designed around client relationships.1 Missions
Customer Satisfaction LSS Academy believes that the success of a business rests entirely
with the successful relationship with its clients.1. Innovation and Business Process Automation. and deliver sustained value.
Intellectual leadership LSS Academy brings new.1. Market Share. etc. focusing on value creating activities aimed at measures such as Customer Satisfaction. to creating deep client capability. LSS Academy is unique as the teams are able to work with all spectrums of clients from generating strategic insight. improve operational performance. Wallet Share. As a result of the client-centered approach and the results delivered. LSS Academy thoughts leadership is embodied in principals of Lean 6 Sigma. to leading hands-on
implementation. Revenue Growth. Cross-Sell Ratio.
Value Creation LSS Academy works and guides their clients to maximize the
“intrinsic value” of their organization. Profitability.
Investing in People LSS Academy believes in helping their clients to internalize their
methodologies. change agents.
. trainers. and sponsor to grow to their individual potential. encouraging trainees. Black Belts. Green Belts. with every client relationship LSS Academy creates sustainable human capital in the client organization. eliminating the need for external consultation support in 18-24 months. Thus.
2 Why Company Invest with LSS Academy
LSS Academy prides itself on Business Excellence & Performance. and Change Management & Leadership. providing not only Coaching & Mentoring. and other delays Improved product warranty and compliance Reduced Inventories and Improved Working Capital Improved Customer Response. Relationships Gain in Market Share with Improved Revenues & EP Improve Supplier Performance Improve Complaint Management
. Among the benefits that company can gain by investing with LSS Academy are as follow:
• • • • • • • • • • • • • • • • •
Increase Uptime Lowering Costs & Lower Cost of Quality Improve Teamwork Culture & Improve Productivity Maximize Asset Utilization Faster Customer Response Less Inventory Optimized Shop Floor Utilization Flexibility-Multi-Product Lines Simplicity of Operation Improved Response with a Multi-Product Line Reduced wait time. but also Training & Certifications. queue time.1.1.
become misaligned with core business objectives. Enterprise Performance. lose focus and track of time. Champions need help to be successful. In order to develop a truly Lean Enterprise it is necessary for leaders to understand what
. However. Without Champions. They serve as mentors to project teams and act as a bridge between Black Belts and organization management.3 Products
LSS Academy has come out with LSS Solutions which include different aspect of product needed such as Leadership Series.1. and may not yield expected benefits. Design & Innovation. The Lean 6 Sigma Champion program provides that help by exploring basic Champion roles.
b) Enterprise Performance This workshop is designed for senior staff as a major stepping stone on a journey to creating a Lean Enterprise in their own organization.1. efforts can become entangled with internal obstacles. Maximizing Shareholders Values. The brief introductions of each section are as follow:
a) Leadership Series This is a program for Champions who play a pivotal role in a successful Lean 6 Sigma initiative. Delighting Customers. and Technical. investigating a sustainable support infrastructure for Champions and preparing Champions to avoid common pitfalls and lead successful Lean 6 Sigma initiatives.
This course provides the analytical tools and practical skills to bring results to a manufacturing environment. Participants will learn the following:
• • • •
Gaining an understanding of what ‘Lean Thinking’ is Gaining an understanding of what it means to you Gauging where you are on your lean journey Establishing a broad implementation plan and the next steps
Using the ‘QS Finance Model’. the workshop will provide you with insights into what true Lean Enterprise are. how it needs to be approached. A significant step on this journey is participating in the ‘Lean for Management Workshop’. often. the different elements that must be addressed. what their role is in leading the organization and how they need to instill a set of. This course takes candidates through a proven. and perhaps most importantly provide a framework for you to consider how you might go about creating a Lean Enterprise in your organization. new behaviors and levels of engagement.
c) Delighting Customers This is a program involving intense classroom training. cohesive approach to lean transformation.lean thinking is. unified management team. where you are on your lean journey. step-by-step methodology on the transfer of knowledge and process skills that
. It ensures that the initiative begins with a broad. and is led by a knowledgeable.
& other improvement methods Applying the DMAIC improvement process Selecting successful Six Sigma projects and project teams Planning and executing projects Significantly increasing profitability through Six Sigma projects Selecting the right statistical tools
d) Maximizing Shareholders Values Lean 6 Sigma Black Belts are the centerpiece of the program integrating the strategies of Lean and 6 Sigma. It is this
Participants will learn how to apply statistical methods for business process improvements like:
• • • • • • •
Communicating a business strategy across the organization Integrating with Lean Manufacturing. voice of the customer.leads to improved project results through support of Black Belt initiatives and enhanced technical problem solving skills. Lean 6 Sigma Black Belts are improvement experts that are deployed to conduct the project work that delivers to your overall goals and objectives. Participants apply the new knowledge from each session immediately between the training sessions. and many more. The widely accepted DMAIC model is taught. failure mode and effects analysis. TOC. including the popular principles such as histograms. Gage R&R. participants internalize the methods and tools of Lean and 6 Sigma. flow charts. data collection and measurement. Throughout development.
Lean 6 Sigma Black Belt Training program builds competent. how to transition it from phase to phase. real-life approach to Lean Six Sigma Black Belt training. teaching candidates how to integrate a variety of Lean Six Sigma tools into an overall approach to process improvement. how to complete a project and evaluate its success. Students are also encouraged to schedule one-onone mentoring sessions with their instructors to discuss project specific hurdles. manufacturers and service
. data-driven Lean 6 Sigma practitioners. Research and development teams.
There will be a hands-on. product developers. and that the learning of Lean Six Sigma Black Belt methods and tools takes place with real world goals in mind. Candidates work on an actual business project and apply classroom techniques to the project. Participants are taught how to define and successfully launch a project. The Black Belt program is technically challenging to ensure that all graduates learn how to implement solutions that can produce financial results. and finally.mechanism that ensures progress is being made quickly.
e) Design & Innovation TRIZ is rapidly gaining popularity as a powerful methodology for enhancing innovation and creativity inside corporate environments. The curriculum follows the DMAIC phases. Instructors provide formal project specific feedback to participants in each phase.
TRIZ is applicable to every industry and in every environment for the acceleration and innovation of problem solving. It will teach you how to use Minitab to implement successful data-driven improvement projects. reliable and creative.businesses alike are finding TRIZ to be a powerful tool for solving practical problems and building new technologies in their business. TRIZ is also used to improve the scope and strength of intellectual property. Topics covered are as follow:
• • • •
Charts Histograms Boxplots Dotplots
. Our training will also help you make more effective business decisions by teaching you how to more effectively analyze your data with Minitab. You will learn when and how to apply Minitab and practice your new skills immediately by working through scenarios and exercises that mirrors your own work.
f) Technical Basic Minitab Training maximizes your ability to improve quality.
TRIZ helps companies generate more solutions of a higher quality in less time. This program offers an intensive introduction to the foundational elements of TRIZ and provides an understanding of how to use them effectively to solve problems in a manner that is predictable.
learn how to match the appropriate statistical tool to your own applications and how to correctly interpret statistical output to quickly reveal problems with a process or to show evidence of an improvement. A strong emphasis is placed on making good business decisions based upon the practical application of statistical techniques commonly found in manufacturing.
engineering. Develop the foundation for important statistical concepts such as hypothesis testing and confidence intervals. Learn how to explore critical features in your processes through statistical modeling tools that help to uncover and describe relationships between variables. Tools covered include:
• • • • • •
t-Tests Proportion Tests Tests for Equal Variance Power and Sample Size Correlation Simple Linear and Multiple Regression
ANOVA & GLM
.• • • •
Scatterplots Tables Measures of Location and Variation ODBC
Advance Minitab Training augments your graphical analysis skills using Minitab's powerful statistical tools. and research and development endeavors. By analyzing a variety of real world data sets.
1. Wikis and consumer’s participation in these platforms forces companies to reevaluate their business strategies. networking and user created content (Eikelman et al. The birth of the Internet and its success in changing our society has been largely researched in various subjects and defined in various terms. social media users will exceed 1 billion by 2012.). The recent investments by leading companies like Microsoft (240 millions in Facebook) and Google (900 millions in MySpace) in social networks gives a clear signal that
The new applications and services are being developed and offered in order to catch up with changing information society define new concepts of doing business. The enormous growth of social networks (Facebook. etc. the Internet evolves and creates new rules for companies interacting and doing business with their customers and partners. MySpace. 2008).0 and social media has emerged as the definitions for second generation of web based services and communities that emphasize online collaboration.
According to Strategy Analytics report (2007). Twitter.2
Background of the Study
Technological development has been seen as one of the main factors effecting company’s processes and profitability in the last century. Blogs. But as year’s passes by. In the last few years the terms of Web 2.
It is the process of promoting the site or business through social media channels and it is a powerful strategy that will get the links.
. and brand awareness. Besides promoting and selling its product through the Internet. and many more. opportunity. LSS Academy also gets the chances to enhance its marketing communications with potential and existing clients.0 due to the emerging ‘world of technology’. MySpace.
LSS Academy is now implementing social media marketing and Web 2. It is about having a dialogue in which consumers and marketers are alike participate and respond. attention and massive amounts of traffic. and also sponsors. Social media marketing enables marketers to take engagement to the next level. Blogs.
There is no other low-cost promotional method out there that will easily give large numbers of visitors. partners.company’s presence in dialogue with consumer gains a new meaning in terms of communication strategy.
LSS Academy has a positive judgment that social media marketing is a great engagement tool with online communities to generate exposure. Common social media marketing tools include Twitter. Facebook. YouTube. branding initiatives. It is great for creating mindshare. LinkedIn. and sales. some of whom may come back to the website again and again.
It contrasts from standard SEO (search engine optimization) where consumers are looking for what you’re selling and at the point of purchase already. community building. interesting or attractive. flash games. This is because marketers are reaching consumers in a non-purchasing stage of the cycle. customer interaction. and etc. On the other hand. all of these elements will support a unique brand experience and support ongoing initiatives in this area.
Back to the basic. Each of these methods helps engage in a deeper dialogue or closer interaction with the existing consumer and also potential customer. and attractive contests based on user participation.
. It is very hard to create a social media marketing campaign that will result in direct sales. social media is less intrusive. Social media marketing is also good for brand building. customer support. Few examples of positive experiences include interesting videos. reputation management. Both positive and negative experiences can really have great impacts on a brand. customer feedback. good products. the bottom line for many marketing campaigns is to bring an increase in sales. Sometimes this is done directly and sometimes it is a very indirect process. If the experience is positive. relationship management. and a part of the reason people engaged is because there is more than just a selling message. high-energy. product development. useful contents.Social media is also a part of brand experience when users interact in these channels.
such as Information Week. and most of them list social media interaction as their favorite leisure activity. developers. and WSJ. social media has taken the web by storm over the last few years. indicated that social media content was their most trusted source of information for purchasing decisions. This same audience of decision-makers indicated that they spent on average of 2. above television. Social network users spend more than seven hours per week on social networks. executive decision-makers. CNN. second only to vendor websites as a reference for purchasing decisions. The reasons are many and compelling. according to a recent study by Fox Interactive Media (FIM). Audiences in general are moving from traditional media to the web and from the static web to Web 2. and IT decision-makers. IT analysts.0 / social media as their preferred free time activity. As Internet users flock to community-focused and collaborative websites.com. as compared to 2. marketers have struggled to determine effective ways to communicate their brand messaging to that audience.93 hours per week on social media websites.1.3 Problem Statement
A similarly compelling survey from IT Toolbox.
Some companies may still be wondering why they should go to all this elaborate effort in the first place. whose participants consisted of business managers.89 hours per week on editorial media.
. The most of the rare academic literature and professional insights are dedicated to US market and there are no findings presented how consumers perceive company’s initiatives to influence their private space on the net in Malaysia. Moreover.
So clearly. this subject is not enough researched in different environments.0 application.Nevertheless. it is not clear what applications and how they should be used by the company in order to make these communications more valuable. social media is a growing channel with a large and influential audience that is too big to be ignored for long. effective strategies for integrating it into an organization’s primary marketing and advertising efforts need to be established. Viral standalone campaigns can sometimes achieve success in this venue. Finally. but for social media to reach its maximum potential as a marketing communications tool. there is a clear shortage of academic literature which defines the social media environment and Web 2.
Analyze the general patterns of the consumer’s perception about the differences between social media and traditional media in Malaysia market.
Discover the evaluation of social media effects on marketing communications.
.0 applications by the consumer in terms of communication interactivity.0 and its benefits.
Define social media and Web 2.1. Evaluate the influence for different types of Web 2.4 Significance of the Study
It is essential to stay current on the latest industry trends because social media evolves at a rapid pace.
in order to enable Social Media Properties (SMP) to integrate into corporate commercial strategy. differences between exiting Web 2. the effects of Web 2.1. As this study concentrates particularly on the marketing communication strategies.0 applications on consumer behavior.
• • •
To identify “Who” are the users of SMP in Malaysia? To identify “What” SMP are they using? To identify “Where” and “How” are they using SMP?
.5 Research Objectives
According to Constantinides and Fountain (2008).0 applications effectiveness and their relationship with traditional mediums. the two main aims are identified below. followed by the objectives of the research:
Aim 1 .To determine the social media environment and identify Malaysian consumer’s profile:
To define the main changes brought by social media in marketing communications environment. these areas must be researched in greater depth.
Aim 2 .To evaluate the SMP effectiveness as marketing communication tool and channel:
To verify if the interactions through SMP could result in positive outcomes for the company.
To verify if different SMP have to be used for different communication purposes.
To verify the level of involvement needed by the company in order to maintain positive relationship with consumer.
To verify if communications through SMP triggers the positive word of mouth.
To verify if different type of consumers use different type of mediums
To verify if SMP could be a valuable channel in changing consumer’s attitudes towards the company.
6 Theoretical Framework
A theoretical framework is the foundation on which the entire research project is based.1. Spectator. There are four types of variables: • • • • Dependent variable Independent variables Moderate variables Intervening variables
Interactions through SMP Awareness of SMP Technographic profiles of SMP users (Creator. Critic. Collector) The Evaluation of Social Media Effects on Marketing Communications
Dependent Variables (DV)
Independent Variables (IV) *SMP – Social Media Properties
Figure 1. Joiner.1: Theoretical Framework
. Variables are anything that can take on differing or varying values. The relationship between the literature survey and the theoretical framework is that the former provides a solid foundation for developing the latter.
To investigate if there is a significant relationship between technographic profiles (Creator.0 applications are now being used widely all over the world.
Awareness of SMP
SMP will create awareness of the public since marketing communications is evolving and Web 2.
. there are three independent variables that will influence the dependent variable:
i. Joiner. Critic. Collector) of the consumer and the preferred media channel chosen.
iii. Critic. but the various online tools also differ in their degree of interactivity. Not only is interactivity a fundamental difference between traditional media and online media. Spectator. Joiner.0 applications generate different outcomes for the company.In this research.
Interactions through SMP
The interactions through Web 2.
Technographic profiles of SMP users (Creator.
. H1 – There is a significant relationship between technographic profiles of Social Media Properties users (Creator.
H0 – There is no significant relationship between the awareness of Social Media Properties and the evaluation of social media effects on marketing
communications.1. H1 – There is a significant relationship between the interactions through Social Media Properties and the evaluation of social media effects on marketing communications. Joiner. Joiner. H1 – There is a significant relationship between the awareness of Social Media Properties and the evaluation of social media effects on marketing
H0 – There is no significant relationship between technographic profiles of Social Media Properties users (Creator.7 Hypothesis
H0 = Null
H1 = Alternate
H0 – There is no significant relationship between the interactions through Social Media Properties and the evaluation of social media effects on marketing communications. Critic. Collector) and the evaluation of social media effects on marketing communications. Spectator. Spectator. Collector) and the evaluation of social media effects on marketing communications.
0 application very well.8 Limitations of the Study
In conducting this research. Occasionally.0 which can affect their understanding in answering the questionnaires. Most of the SMP users might know how to use the Web 2. professional insights.
. there is a doubt that the respondent may not really exposed to the terms of Social Media Properties (SMP) and Web 2.
Finally. the information for this research is very hard to attain because this subject is not enough researched in different environments. It is very challenging to distribute the questionnaires to the respondents through web survey. This limitation will contribute to the lack of local sources in Malaysia. and empirical study are dedicated to US market and few Europe markets compared to Malaysia market. they will give incorrect and irrelevant answer to each sequence of questionnaire.
Furthermore. Most of the academic literature. although they are not really aware of the terms and definitions. or can learn it naturally as they get used with the applications.1. there were certain limitations that the researcher had discovered. It is quite tough to control the obstacle since the research is conducted virtually.
But for social media technologies such as social networking. IT tools to support collaboration have existed for decades.
Web 2. enable collaboration on a much grander scale and support tapping the power of the collective in ways previously unachievable. Wikis and blogs.9 Definition of Terms
The real power of people can be noticed in the new revolutionized media channel – social media. facilitator and enabler of social media.0 should be perceived as the new tools for the marketing communication mix. social media is a set of technologies and channels targeted at forming and enabling a potentially massive community of participants to productively collaborate.
According to Anthony Bradley (2010). conversation. participation & engagement. community. Constantinides and Fountain (2008) defined Web 2. which share most or all of the following characteristics. According to Mayfield (2008). and connectedness.0
Web 2. openness. social media is best understood as a group of new kinds of online media.0 as a collection of open-source.1.
Blogs.com.0 is the term given to describe a second generation of the World Wide Web (www) that is focused on the ability for people to collaborate and share information through online.0 was previously used as a synonym for Semantic Web.0 has been used more as a marketing term than a computer-science-based term.0 basically refers to the transition from static HTML web pages to a more dynamic web that is more organized and is based on serving web applications to users.0. It’s a unique blend of networking skills (relationships). because we are building relationships. knowledge. and market power of the users as participants in business and social processes.interactive and user-controlled online applications expanding the experiences. they do not share precisely the same meaning. not overtly promoting. Web 2. Web 2. Web 2.
Social Media Marketing
Geoff Livingston (2008). Over time. traditional Public Relations
. author of Now is Gone and CEO of a Media Relations Firm said that social media marketing really requires networking skills first. Web 2. and web services are all seen as components of Web 2. but while the two are similar. Other improved functionality of Web 2.0 includes open communication with an emphasis on web-based communities of users and more open sharing of information.
Accessed from Webopedia. wikis.
brand managers. direct marketers. uniform impression across all forms of communication. goals in the business and / or marketing plan. To use social media marketing effectively. Internet marketers. the ultimate goal is to present an integrated.skills (building goodwill). service.
. products and / or services are worthwhile. and company communication. and customer service (delivering resolutions to issues).com. marketing skills (giving customers what they want). businesses have to be perceived as members of the social media community and willing to interact with other members.com. Those in general marketing. social media marketing consists of the attempt to use social media to persuade consumers that one's company. advertising managers / agencies. all participate in some aspect of marketing communications. Businesses use social media to sell their products or services. marketing communication is a broad term that encompasses all the ways businesses interact and communicate with a market. public relations professionals.
According to Websitemarketingplan. and sales people. publicists. This means addressing product. promotions specialists. For most.
According to About.
With the advent of personal computers and home video in the late 1980’s and the explosion in Internet use. information and communication technologies have emerged as a central focus and defining force in a wide range of occupations and lifestyles. and describe
psychographic. cell phones. technographic is a segmentation of market research analysis tool used to identify and profile the characteristics and behaviors of consumers through the process of market segmentation.com. BlackBerry. marketing communication is the management process that integrates the marketing function relates to audience to realize the wider brand and its consistency. personal digital assistants. and others in the 1990’s. market researchers realized the need for a segmentation scheme based on the role that technology plays in consumers' lives.
homogeneous clusters of consumers that comprise possible target markets.According to David Picton (2005). Traditionally market and researchers lifestyle focused to on various demographic. Accordingly.
According to Wikipedia. video games.
• Provided opportunities for interactive communication.
Grieco and Holmes (1999) (cited in Combe et al. As predicted by Newman (1991). The new ways of communications have been successfully adopted and become a norm. 3) Oculacy or the ability to communicate messages through images.
. • Provided the possibility of increasing the speed of communication. radio. The new technologies as telephone. 2003) identifies three powerful features of Internet:
Disintermediation or the removal of brokers by allowing direct
communication across spatial and sociometric distance.0 LITERATURE REVIEW
The last century was a gold age for the media development. and television have changed people’s lives forever. The last decade of the century brought the new innovative technology – Internet. 2) Asynchronicity of the removal of temporality as a barrier to
• Altered the meaning of geographic distance. • Allowed the huge increase in the volume of communication.2. • Allowed forms of communication that was previously separate to overlap and interconnect.
and capital. and communication technology (ICT). It creates the market space – a virtual realm where products and services exist as digital information and can be delivered through information-based channels (Rayport and Svikola. These interactive channels allowed companies to reach new markets or have a greater influence in the existing one’s (i.
.. and its potential to provide an efficient channel for advertising. media companies transferred their newspapers in order to reach new audiences) and the consumers had an opportunity to save time and money by communicating. the “Web” presents a fundamentally different environment – both as a medium and as a market – from traditional communication channels perspective. is commonly regarded both as an indicator of the postmodern era of globalization and as the very precondition for that era of intensive worldwide interactions of people and exchanges of goods. including information. marketing.e. 1995) argues that the popularity of the WWW as a commercial medium (in contrast to other networks on the Internet) is due to its ability to facilitate global sharing of information and resources. and even direct distribution of certain goods and information services. 1994).
According to Linda Peters (1998). the global spread of modern technology. information. or buying product and services online. Hoffman (Hoffman et al. services. looking for information. The companies and consumers quickly adopted the new concept of the new interactive world for their own benefits.According to Hermeking (2006).
The world have witnessed the evolution of a universal interconnected network of audio. 1998). video. user-to-user and user–to-message. the more interactive the communication is”. The shift is then from a “one (firm)-to-many (consumers)” model of communication to the “many-to-many” model where contribution to the medium and the message may come from both directions (Hoffman and Novak.. Ha and James (1998) suggested that “The more communication in a computer-mediated environment resembles interpersonal communication. and electronic text communications that blurred the distinction between interpersonal and mass communication. 1996). 2007) argues that such kind of communications allows mass customization and personalization and the messages send through Internet can be targeted more effectively. and between public and private communication (Neuman. Steuer (1992) defined users-to-message interaction as follows: “The extent to which users can participate in modifying the form and content of a mediated environment in real time”.
Commercial online services and the introduction of the web have created the potential for a mass interactive dialogue between exchange parties (Peters. Chaffey (Dave Chaffey et al. emergence of new media (Internet).
. Contemplating about user-to-user interactivity. brought new models of interactivity. 2003).According to Liu & Shrum (2002).
The new market space changed the behavior of the people and the communication models.
all within the same medium and within the same session (Economist. warm.
Control of contact .Moreover. the web is changing the traditional marketing communications concepts as the consumers can go all the way from “Awareness” to “Interest” to “Desire” to “Action” (AIDA Framework). personal. it is said to be interactive. Peters (1998) suggests four main changes in communication model. Where users are able to control the content or presentation of the message. receiving.
iii. and responding aspects of communication between the parties. 1996). comparing the new and old media:
i.early research into the willingness of consumers to utilize technology in shopping behavior concludes that the ability to control the pace and presentation of product information has the strongest influence on willingness to engage in computer-mediated marketing activity (Carson et al. sensitive..tend to have little or no time lag between the giving. and active.
Communication style . 2008). the feeling that communication exchanges are sociable.
ii.or perceived personalness.
Social presence .
. • Content – the content can be customized either by users or by senders.
suppliers. experience. it creates not simple massages but forms two-way conversations. 1998). digital technologies signals is a potentially radical shift of who is in control of information. One of the key features of the new electronic communication media is the ability of consumers to control both contact and content (Peters. because the value is constantly created in interaction with many different players. marketers are losing control over the communication messages their trying to deliver to their consumers.
Moreover. As a result. including consumers. and managers. Shapiro (1999) argues that the emergence of new. employees. according to Normann and Ramirez (1994) the consumers become co-producers. 2005).
. in the meaning of sharing information. meets interactivity. These conversations can be applied in production as
implementation of mutual ideas (consumers’ and producers’) in order to create new enjoyable products or services. According to Gatarski and Lundkvist (1998) when communication. and resources. Sohn and Lackenby (2002) suggest that individual’s participation in social communication processes is the crucial factor for increasing the perceived interactivity of the Internet (citied in Stafford and Ronald.Andrew L.
5) Connectedness: Most kinds of social media thrive on their
connectedness. 3) Conversation: Whereas traditional media is about ‘broadcast’
(content transmitted or distributed to an audience). games. It blurs the line between media and audience. According to Mayfield (2008). and many more. current issue. There are rarely any barriers to accessing and making use of content – password-protected content is frowned on. entertainments. such as hobbies.1 Social Media
The real power of people can be noticed in the new revolutionized media channel – social media.2. social media is best understood as a group of new kinds of online media. political and economic issues. 2) Openness: Most social media services are open to feedback and
participation. They encourage voting. and people. Communities share common interests. social media is better seen as a two-way conversation. which share most or all of the following characteristics:
contributions and feedback from everyone who is interested.
. 4) Community: Social media allows communities to form quickly and
communicate effectively. and the sharing of information. resources. comments. making use of links to other sites.
iii. or the local community. So anyone can create and operate the means of production. but there are several characteristics of new technologies and behaviors that set them apart from the past:
i. where the simple message delivery is changed by ongoing exchange of perceptions and ideas between company and the consumer. Today's technologies for media creation are available to anyone at little or no cost. Today's technologies simplify those processes. opining. broadcasting and creating has been long in our lives. or in some cases reinvent them.
Accessibility — The means of production for most media used to lie in the hands of enterprises with unlimited resources (financial or human). connecting.
Reach — Historically. both technically and creatively. friends.
Usability — The means of production typically required specialized skills and training. because marketing within social media is about building a relationship and conversation with the audience. audiences for the common person have been limited.
Haven (2008) suggests that social media key elements are not entirely new as features of sharing.Drury (2008) suggests that when analyzing social media. when “social” element is the key. a tribe. marketers too often concentrates on the “media” factor. Today's technologies provide scale and enable anyone to reach a global audience. family.
v.). and today's technologies make that both possible and purposeful. weeks. the time lag between
communications was typically long (days. location. Today's technologies enable instantaneous responses and dialog where only the participant determines the delay in response. It was a limitation of the technology or system in which it operated. historically kept personal information to themselves and had a general distrust of authority (enterprises.iv. and others) in a public venue. etc.
. people are willing to share anything about themselves (interests. Today. family situations.
Transparency — People.
Recency — When people did have the means of production and distribution in the past (albeit limited). health condition. especially Americans. government. or even months).
Social media and Web 2. and market power of the users as participants in business and social processes. knowledge.2 Web 2. dissemination.
The Web 2. interactive and user-controlled online applications expanding the experiences.e.0 should be perceived as the new tools for the marketing communication mix and facilitator and enabler of social media. sharing and editing / refining of informational content.
.” these companies realized that the “Web” is much more useful for delivering service than being used just as a platform for “packaged” products (i. According to Tim O’Reilly (2007) “The companies that survived the dotcom boom had something in common.2. the Web 2.0 are two terms which are often used interchangeably in the marketing literature. even though they are not entirely the same.
Constantinides and Fountain (2008) defined Web 2. It has originated from talks about social software and the communities surrounding these applications.0 as a collection of open-source. Web 2.0 applications support the creation of informal user’s networks. From the marketing perspective. software). facilitating the flow of ideas and knowledge by allowing the efficient generation.0 terms was introduced by Tim O’Reilly in 2004.
encyclopedias (wikis): Wikipedia.
Social networks: Applications allowing users to build personal websites accessible to other users for exchange of personal content and communication.0 applications. Hi5. For examples: Epinions. For instance.com. 2005) suggests that Web 2.com. Facebook.google. Examples: Myspace.com. Tagged. that is.com.com.0 is the philosophy of mutually maximizing collective intelligence and added value for each participant by formalized and dynamic information sharing and creation.com.com. Examples: Wordpress.com.
Blogs: Short form for Web logs. Blogger.com.
Forums / bulletin boards: Sites for exchanging ideas and information usually around special interests. social
iv. the most known and fastest-growing category of Web 2.com.
Content Communities: Websites organizing and sharing particular types of content.com. LinkedIn. applications applications Digg. Hoegg (Hoegg et al.com.com.
. the online journals. Blogs are often combined with Podcasts.com. digital audio or video that can be streamed or downloaded to portable devices.
iii. Xanga. of of and video photos publicly sharing: sharing: edited
Video. and Constantinides and Fountain (2008) classified Web 2. Friendster.org. Flickr.0 into 5 broad types according their nature:
i.Hoegg (Hoegg et al.com. YahooAnswer.
iPods – via podcasts).yahoo.0 into the precise groupings.0 features works on one platform. google. Social applications are becoming more and more popular on mobile devices (Phones. Therefore. this combination of two or more pieces of contents (or software. at a varying distance from that core. because the applications are interrelated and most of the time a few Web 2.0 applications. but rather. a gravitational core which could be visualized as a set of principles and practices that tie together a veritable solar system of sites that demonstrate some or all of those principles. according to BBC News (2008) one of the reasons the Internet usage on the mobile devices is increasing is because of Web 2.v.
. The mixture of Web 2. fast-moving. it is difficult to classify the Web 2.com/ig.0 applications is the adaptability in the different platforms.
According to Mayfield (2008).com.
customize the web content they wish to access. or websites) is one of the phenomena in social media that make it at once so exciting. and sometimes bewildering.0 applications working under one site are known as “Mash-ups”. In fact. But even more important feature of Web 2.0 doesn't have a hard boundary. These sites make use of a technique known as Real Simple Syndication or Rich Site Summary (RSS).my.
Tim O‟Reilly (2005) argues that Web 2. Examples: uk.
embracing blogs. or even days. and other multimedia
. organizations of all types and sizes are recognizing the ways in which social media can help them better understand. social networks. wikis. but images.
There are few types of benefits that can be achieved by corporations with the use of effective social media strategy:
Social media vehicles. audio. allow for instantaneous dissemination of not just news.2. respond to. on the other hand. businesses are now jumping on the social media bandwagon at a rapid pace. for a new announcement to reach the end consumer through traditional channels. and other vehicles to achieve their marketing and public relations goals. As a result. video. a journalist or writer must first wade through all the sales and marketing lingo to find the key points. and sent to an editor or proofreader before it is published. Then. When a press release is issued. It may take hours.3 Social Media Marketing
As the prevalence of social media continues to rise. and attract the attention of their target audience.
Get the Message Out Faster – and to More People
Social media enables more rapid sharing of information. the content must be re-purposed in article format.
can be a highly useful tool for enhancing both awareness and image. and its services to more people. dramatically increasing brand recognition and awareness. one recent study showed that almost one out of every four Internet users over 41 million people total in 2006 visits MySpace on a regular basis. While magazine readership and the number of available print publications continue to decline. And because releases geared toward social media outlets contain only key highlights.content as well. and use that intelligence for more
. pertinent facts.
ii. enabling breaking news to reach a much larger and broader reader base than standard media outlets alone. social media can enable executives to gather input and feedback directly from their target audience.
Social media and blogs in particular. and hyperlinks to related statistics and quotes. its products. For example.
Social media also provides more widespread coverage. Blogging can help “spread the word” about a company. the number of consumers using the Internet to access and share information continues to rise sharply. the information they contain can be immediately picked up and posted by bloggers and other online journalists.
and that content is then linked from del.
. it can generate a tremendous boost in Web traffic. Insight into why people like or hate a brand is needed to help change and control audience perceptions and preferences.us or Reddit. and links to blogs and other relevant Web content can dramatically improve search engine rankings.effective reputation management. social media expands the potential audience by creating alternate channels. and social media has proven its ability to significantly complement SEO initiatives. ticker symbols. while SEO relies on just a handful of popular search engines such as Google and Yahoo to drive target prospects to a site. title tags. Many companies also find it much easier to generate compelling content that is likely to be picked up by bloggers. when content is published to a site.
Boost the Impact of Direct Marketing
Search Engine Optimization (SEO) is a key component of today’s direct marketing and lead generation strategies. than it is to keep up with the “rules” required to rank high in today’s popular search engines. Many social media techniques such as frequent use of common jargon and key phrases.
iii. For example.
Armano (2008) argues that social media goes beyond the interactive marketing which is facilitated by computer-human interaction. automated e-mails) through online channels. but redefines interactivity and takes it to another level. does not change this idea. As summarized in the media landscape analysis. CRM.2. social networking. 2005) recognized the importance of creating two-way marketing channels between consumer and company for brand building. sales (and etc). The main difference is that the companies instead of pushing the content (i. Pettit and Brassington.). Most of the marketing academics (Kotler. engagement replaces interruption. diversity and self-expression replace conformism and unity.4 Interactions through SMP
The interactivity gains a new meaning when it is applied through Web 2. the
.e. 2003. Meadows-Klue (2008) suggests that in social media marketing.
Social media. the past decade was all about two-way
communications and interactions models.0 platforms and social media channels as dialogue between consumer and company becomes much more active and interactive. itself. Free production of content and voluntary distribution is the key elements of the social media. commenting. and introduces human-to-human interaction enabled by technology. empower people to engage and interact with other people and produce new content about the company (blogging. and etc.
In fact. marketers should provide the content which would be
. granular insights and rich data replaces generalization and conversations in marketing replace control. as the messages are already floating out there. Drury (2008) suggests that instead of sending simple messages. to do this is too late.media of the masses replace mass media. 2007). According to Mitchell (2008).
Another major change from the marketing perspective is the shift from persuasion to influence. the best marketers can do in this environment is to try to engage with the consumers through social media in order influence these messages. Armano (2008) suggests that people can be divided in different grouping according their “strength” as the massagers. 2008). According to Eikelmann (Eikelmann et al. but in the age where 25 percent of search results on Google for the world’s 20 largest brands links to consumergenerated content (Nielsen Buzz Metrics. not practical or impossible. this process is facilitated by the change of information flows from “top down” (B2C) to “bottom up” (C2B).
The User Generated Content (UGC) can become influential message of the consumer to the consumer (C2C) about the company and therefore should be carefully monitored. Past decades marketing practitioners were using the communication mix in order to “attack” consumers with pervasive messages to make them buy goods and services offered. the content is the new message in social media channels. which redefines marketing environment as marketers do not own the message.
Micro strategies are more valuable in fragmented media environment. Welcome to the age of influence. These strategies have to consider the increasing fragmentation in the markets which may shift the rules of targeting into behavioral marketing favor (Meadows-Klue. influence will become a standard measurement in Marketing 2. According to Godin (2008). 2008. 2008). and changing consumer behavior drives down the return on investment (Biegel.0 (Dowdell. Armano (2008) suggests that micro interactions and permission marketing /
unconventional marketing (Godin.”
Marketers are forced to look for alternative communication strategies to market in the social media environment because advertising clutter. unconventional marketing principals are effective because it considers the needs and wants of the people and listens to them. 2007). 2008). As blogger and social media strategist Douma (2008) put it: “The age of persuasion is over. as they generate more precise consumer insight and as a result are better targeted. 1999) should be the right strategy to approach the consumer in the new media world. Therefore. 2008). growing advertising literacy. Constantinides and Fountain.relevant for consumers and would generate conversations among them.
. Therefore it aims to build a more in-depth and lasting customer relationship based on loyalty and trust (Masterson.
Viral and Word of Mouth (WOM) marketing principals are the essentials in social media. Internet Consumption Report.
. 2008.0 applications and tools. which works as enablers in order to increase reach and speed of the messages. or conversely result in an astonishing backlash. word of mouth campaigns can take off very quietly through niche communities and can be powerfully persuasive. This medium provides a platform for Web 2. 2008) shows that people make purchasing decisions according what they here form other people about the products or services. According to Lockhorn (2007). It should be closely monitored by marketers as various researches (RazorFish.
2.5 Awareness of SMP
It was only approximately 20 some odd years ago that the average person was beginning to become associated with the Internet. Prior to that, the Internet was mostly reserved for academia and various government agencies. Before that, it was only reserved for the U.S. government (the official origins of the Internet began back in 1969 with the U.S. military’s funding of a research network dubbed “Arpanet”). Today, we not only have the Internet, but also social media tied in there as well.
The term “social media” implies; “media” (place where publications occur) and “social” implies that there is sharing occurring –sharing of ideas, opinions, and images. Social media also implies the tools, places, and services that allow people to gather for social interaction. Social media allows individuals to gather and express themselves in a much more simple and immediate fashion. By giving people this capability, they not only have the ability to share ideas, opinions and other contents, but also (if they wish) gain notoriety, and expand their influence.
The ability to do so has altered the way ideas change hands and how fast those ideas spread. At the same time, news and any information that would usually take days or even weeks to go from one location to another can now occur in seconds. This ease of communication has never been so available to
people around the world as it is now and it is still continuing to evolve. Remember that throughout history, many countless numbers of governments have created and held onto their power by controlling information and the spreading of ideas. Because of social media, many of these types of governments can no longer function this way any longer. Why? Because the technology available to a person is so economical and simple to utilize that virtually anyone with some education or training on the subject can become a point of contact for the communication of information.
The Delivery of News, the Sharing of Ideas, and the Expression of Opinions
Figure 2.1: Key Social Platforms
The spreading of an idea, or of news occurring somewhere in the world can no longer be completely blocked by any organization. As long as one person is able to connect to the Internet and express their view about a situation or simply about an idea, then the information that individual will want to share, will get out into the world. Remember, last year during the Iranian elections when there were (and to some extent still are) people disagreeing with the “official” election outcome, the Iranian government attempted to control the
communication and the images of what was occurring in Iran from getting out. They were never able to control all the information and images that were being seen by the world in ‘real-time’. In another example, when an earthquake rocked the country of Haiti, not only were images from the torn country in the aftermath of the quake being seen around the world, but commentaries and opinions of what people were seeing were being read and heard (from Haiti). Sites such as Facebook, Twitter, YouTube, and FriendFeed allow people to share ideas on not just news, but also on products and services. Products and services that before social media, many people would not have even heard about them, let alone request or want the service.
Needless to say, social media has forever changed the way society works, whether it’s the sharing of an idea, the communication of news, or the availability of a product or service. Society today is on the verge of a new way of existing that it’s never experienced before. No longer will people from one side of the world be really able to say that they will never see a person or communicate with
Here are few questions related to the awareness of social media:
What are some of your opinions as to how social media has changed society?
How do you believe social media will be in the future? What will social media look like in 5 or even 10 years from now? 15 or 20 years from now?
. No longer will the spreading of information or the expressing of an opinion be able to be completely silenced. share their music or art. if they really want to share it (no matter how radical it may be or no matter how many people may disagree with it).someone from the other side of the world ever in their life. As long as there is a person who wishes to express their opinion. or simply say hello to another human being in another country or culture. No longer will people not be able to share an idea. social media will allow them to do so.
tribes. Millennial. 2004. Millennial never experienced life without computers and are just a click away from the world any minute. 2008). Generation Y. and more tolerant of diversity than their predecessors. it is the first global generation ever which is smarter. and changing consumer behavior (Raaij. 2008). self-confident. semantic web. Constantinedes. 2005). A decade ago Raaij (1998) identified that social and technological developments will create new options and possibilities for consumers and will bring some real changes for marketing managers.6 Consumer 2. Cova 1997.0 Citizens
As powerful as it is technology is just enabler and it‘s the technology in the hands of almost always connected people that make it so powerful (Blume.
. These changes in postmodern marketing era are mostly driven by the new consumers. 2008). quicker. 1996. Flart et al. describing the new generation of tech-savvy.2. According to Tapscott (2008). 1995. success driven. The mass acceptance of the Web as social medium is the biggest recent change in internet behavior which allows the postmodern marketing concepts to flourish (Razorfish. just a few names often met in marketing literature. For the past 18 years. Simmons. citied in Li and Bernoff. interactivity. independent but community-minded people (Deloitte. but only today the discussed thoughts embrace their real meaning.0 –Web 2. the active discussions have taken place in marketing literature analyzing the relationship of postmodern marketing. 1998.
Tapscott (2008) identifies eight norms that define Net Geners: • • • • They value freedom and choice in everything they do. They love to customize and personalize. Deloitte (2005) suggests that Generation Y is impatient.
Moreover. They expect everything to happen fast. and is willing to see oneself as a (marketable) object in the different situations he / she encounters in order to make each a supremely exciting and enjoyable experience (Flrat et al. They expect constant innovation. as well as their social life.. the more they know (Deloitte. wants to produce something worthwhile and seeks to make a difference in order to be rewarded with a respect. This generation fits well the description of postmodern consumer which lacks the commitment to grand projects and seeks different experiences. They demand integrity and openness. 1995)
. including when deciding what to buy and where to work. 2005). • • • They love to collaborate. They scrutinize everything. • They want entertainment and play in their work and education.the younger they are.The reverse accumulation of knowledge is typical for them . needs the flexibility and space to explore.
0 Citizens. and resources to influence this phenomenon.
. So called “digital immigrants” (Palfrey and Gasser. they are not the only ones affecting the marketing environment.
Web 2. Wipperman (Trendbureo. 2008) or fast adapters of the technology arguably might have even bigger influence on the ongoing changes in marketing as they are aware about the changing situation and they have a power.Web 2. 2008) argues that the Maslow‘s pyramid of needs is changed with the closed loop (a feedback loop) where in the process that is never completed self-actualization remains the individual‘s basic motivation and is increasingly coming to the means of self-optimization. As both of these consumer groups are very important for marketers they could be grouped under one term of . knowledge.0 Citizens worries marketers as their consumption patterns and the perception of the value are evolving and the old marketing models are not working on them.Even though.
2000. Easily satisfied. Goulding. 1998). at the place and time they want. and other forms of user-generated content uncontrollable by the marketers. Source: Trendbureo (2008)
The changing needs affects buying behavior which makes it difficult for marketers to target the consumer. According to Kim (2000) (cited in Bowman and Willis.2: The Closed Loop of Needs. The consumption becomes a way for individuals to creatively appropriate and construct self-images that allow them to become more desirable or likeable in various social contexts (Dawes and Brown. what has considerable consequences for the distribution of goods and services (Raaij. These content creating people are keen in building online communities. referrals. blogs.Figure 2. 2003) the hierarchy of needs differ between offline and online communities. online forums. tagging. peer reviews.
. psychological and safety needs moves the postmodern consumer onto the search for social and self-actualizing experiences.
Constantinides and Fountain (2008) argues that in social web era. especially when the new consumer takes the initiative for transactions. in order to satisfy their social. self-esteem and self-actualization needs. consumer preferences and decisions are based on new inputs provided by parties beyond the control of online marketers. 2003). social networks.
brand communities are concerned about relationship between brand and consumer. • The brand community is not just formed around a product. it is part of the product. non-geographically bound community that is based on a structured set of social relations among admirers of a brand.1: Online Community Needs. furthermore. Source: Bowman and Willis (2003)
According to Cova (2002).
. Muniz and O’Guinn (2001) (citied in Ouwersloot and Odekerken-Schroeder. whereas tribes –relationship between consumers. Mairinger (2008) suggests that: • The brand community is not just formed around a brand.Table 2. the main differences are that the brand communities are explicitly commercial whereas tribes are not. 2008) describes a brand community as a specialized. it creates the brand.
1998). This media literacy evolved into digital media literacy and let the audience to manage and select their own exposure to marketing messages (Meadows-Klue. 2008). brand communities can add real experiences and emotion to the brand.Therefore. reach the long tail. Therefore. 2008). a power shift can be observed from the sender (advertiser) to the receiver (consumer) where communication obtains a service-oriented (experience creating) rather than a persuasive role (Raaij.. Flrat (Flrat et al. According to Mairinger (2008).
Communication Process Changing consumers requires different communication approach from marketers. According to Tapscott (2008). 1995) argues that in emerging postmodernity the consumer may be finding the potential
. address both individualism and collectivity needs and replace the celebrity endorsers with community brand advocates. Web 2. manage and enable these brand communities.0 citizens do not accept the oneway communication approach because they have been immersed in two-way communication from childhood or their growing frustration with traditional communication approaches has reached the maximum limit. social media can be viewed as an important channel and tool to interact. Considering that 49 % of people made a purchase based on friends recommendations on social media property (Razorfish. the creation and development of brand communities is one of the most important tasks of the marketer as it can guarantee the company success in the long term.
As a result. the value is gained trough completely different experiences where consumer becomes a producer – prosumer. Moreover.
. the service or product itself can be modified in order to enable the consumer to take a part in co-creation process and guarantee a positive word of mouth for the company. Lawer (2006) proposes eight styles of company-consumer value co-creation.to become a participant in the customization of his/her world by immersing her/himself as an object into the world of objects. instead of trying to maintain a position that is privileged to and detached from the objects. Lawer and Knox (2006) identified the new drivers of value which has to be considered when planning communication strategy. Therefore. Creating and sharing positive experiences becomes more important than just sending simple messages to the consumer. as the lines between consumers and producers disappear.
Changing customer’s perception of value affects the communication process as it is difficult to create suitable value proposition and target the consumer. Creativity and co-creation engages consumer. marketing has to include the consumer not as a target for products but as producer of experience. Constantinides and Fountain (2008) argues that changing communications has to consider the new factors influencing the decision making process of the consumer (online uncontrollable marketing factors). especially when it happens in neo-tribes or brand communities where the consumer can share the experience with others.
vi. "Collectors" . 2008): i. ii. the people could be divided in 6 social technographic profiles according to their participation level (Li and Bernoff.Read blogs or customer reviews. comment on blogs and forums. v.Maintain a profile / an account on social media site (Social network. write articles or stories and post them. "Critics" . add tags to web pages or photos "Joiners" . Inactives . Content community).None of these activities. iii. upload created videos/music. watch video or listen to audio (podcasts).From the social media perspective. contribute to articles or wikis. iv.Use RSS feeds.Publish a blog / website.
. "Creators" . "Spectators" .Post ratings / reviews.
. 2008). the social strategy could be adopted (Li and Bernoff.It is important to understand how social technologies are being adopted by the company’s costumers as according to consumer’s profile.
Figure 2. Hoegg (Hoegg et al. marketers should be concerned about “Creators” as they are most likely to be the trend setters / brand evangelists (opinion leaders).0. Source: Hoegg (2006)
.3: Participation Model of a Web 2. Especially. 2006) summarized the participation model of a Web 2.0 Service.
This chapter will outline the research methodology. iv. and procedures undertaken. ii.1 Introduction
Research methodology can be defined as a highly intellectual human activity used in the investigation of nature and matter. iii. The thorough description of research design will also be presented in this study. and interpreted. It will also explain how the research was planned and implemented. the effectiveness and efficiency of the research project can be achieved. applied techniques.
By conducted a good research design. and deals specifically with the manner in which data is collected.0 RESEARCH METHODOLOGY
Identify data and information Collection of data and information Analyze the data Disseminate the information
. A deep understanding of the following component of research design is required:
organisations’ and social systems’ behaviour as an opposite to ethnographic (subjective) approach which is analyzing practices more than theories in greater depth and more at individual level. According to Maylor and Blackmon (2005).1. the literature review was dedicated not to generate hypothesis. Sometimes it may not be possible to develop any hypothesis at all. the scientific (or objective) approach is more concerned with understanding the general patterns of people’s. Maylor and Blackmon (2005) suggest that sometimes when there is scarcity of data it may be an acceptable to use two research approaches in one study. since the main objective of this research is to verify a set of theories that describe “what” is changing in the marketing communications environment and analyze consumer’s behavior according to these hypotheses. Even though it is considered to be scientific research there are some appearances of ethnographic inductive logic. but to build-up the theory itself and to prove that in changing media landscape. if it is being investigated for the first time as there are no previous data is available (Bhojanna. 2007). scientific and ethnographic.3.
This research can be considered as a theory-led scientific study.1 Description and Justification of the Methods
There are two general types of the research approaches. because the research subject is relatively new. Therefore in this study. there are new marketing communication tools and channels requiring greater
the findings in the literature review were adopted in data analysis. Furthermore. In the short time frame. According to Maylor and Blackmon (2005). Therefore. the self-administrated online questionnaire method was chosen for conducting the survey. a suitable way to verify the research hypotheses and capture opinions.consideration.
The quantitative research strategies are used to count and measure the data in order to answer the questions “what”. both qualitative and quantitative research have their advantages and disadvantages and are used for different purposes. according to sample size and time frame. appropriate data had to be collected and processed. it is considered to be one of the best tools to gather large amounts of valid data. and “how much” as an opposition to qualitative research questions “why” and “how”. and facts is by doing a survey. There is a debate going on whether qualitative or quantitative research is better. In a result. behaviors. “where”. “how”. but according to Maylor and Blackmon (2005).
The success of the quantitative study is based on the validity of the data and statistical significance of the results that could be generalized.
. attitudes. and that chosen hypothesis are valid. “how many”.
Because of the scarcity of data in the academic literature. Therefore it has to be analyzed first before the collection of the new material. literature review was performed which analyzed secondary data. to discuss the reasoning behind the hypothesis.1 Data Collection Method (Primary and Secondary Data)
Malhotra and Birks (2003). some of the most valuable information was gained through the community of marketing bloggers and research reports by individual companies.3. 1991). primary data which has been collected in the process of the study by the researcher. The primary data has to be collected as well. the primary and secondary data were used in this study. and secondary data which has been already collected and analyzed by others (Ghauri et al.2 Research Design
First of all. There are two types of data. Both sources of data should be used to achieve efficiency and effective research objective. as the secondary data may not always provide the needed answer to all research questions (Ghauri. The secondary data provides an ability to save time and money.2. 1991). books. states that an appropriate data collection method contributes to the successfulness of research project. In order to answer the research questions.
. The academic articles and research papers. The secondary data was collected from various academics and practitioners sources.
3.2 The Questionnaire Design
According Easterby-Smith (1991). In order to produce a reliable questionnaire and minimize biases in the research. The general appearance of the questionnaire was selected from pre-designed themes for thesis type surveys suggested by the web portal providing the surveying services (Surveymonkey. the designer has to consider three areas of main issues. within the short time frame and limited resources. It enabled researcher to apply statistical analysis methods for the study.administrated questionnaire is the most appropriate method to collect data for research. Maylor and Blackmon (2005) suggest that in order to gather appropriate data with a questionnaire. the design and planning are the vital parts.2. the wording of the questions. academic and industrial magazines or solitary articles where used to generate a broader view on the subject.
In order to answer the main research question and to test the hypothesis proposed in the introduction.
.published case studies. a self. the appropriate categorization of variables. The simple commonly used expressions and terms were used in order not to confuse respondents. and the general appearance of the questionnaire (Sekaran. the primary data was collected through the web survey (self-administrated questionnaire were used).com).
In order to gather necessary data, different types of questions were chosen. The closed-ended question was mostly used in this research in order to gather defined answers. Even though, in some questions the combination of closed-ended and open-ended question were used in order to leave a possibility for respondents to identify additional concerns.
Target Population and Sampling Design (Sampling Frame, Sample
Size, Sampling Technique)
According to Maylor and Blackmon (2005), the choice of the sample and correct sampling methods are one of the key factors in gathering valid and measurable data for the research. Malholtra (2003) suggests the five steps for sampling design: i. ii. iii. iv. v. Define the target population Determine the sampling frame Select the sampling frame Determine the sample size Execute the sampling process
Population The target population was chosen considering the objectives of this research. As a result, only the people who have ever used Social Media Properties (SMP) were considered as possible respondents.
Sampling Frame The biggest social networking website, Facebook.com which represents almost all Web 2.0 features in one site was chosen as the sampling frame for this research. This sampling frame was used to define the sample size needed to collect appropriate and valid data for the research
Sampling Size Due to limited data about the total number of social media users in Malaysia and short time frame and the budget, only followers from LSS Academy’s Facebook were considered as the possible respondents. The researcher had determined the target to get 100 responses from the web survey questionnaires as the sample size.
Sampling Technique According to Maylor and Blackmon (2005), if there is an accurate sampling frame and the probability sampling methods are employed, there is a better chance to reduce the sampling error. Therefore, probability simple random sampling (SRS) method was applied as the sampling technique in this study.
3.2.4 Reliability and Validity
As the questionnaire is a highly structured data collection tools, limiting the powers of the researcher, the design of questionnaire should include three characteristics (Bhojanna, 2007):
Validity: Validity is the most critical criterion and indicates the degree to which an instrument measures what it is supposed to measure. Validity can also be thought of as utility.
Reliability: Reliability means, measuring instrument should provide consistent results, even if it is measured repeatedly.
Practicality: Measuring instrument must be economical and easy to use by the researcher. That means researcher must be able to measure what he intends to measure.
multiple choice.5 Data Administrative and Analysis
The researcher attached the questionnaires link at LSS Academy’s fan page in Facebook.
. Frequencies were used to analyze the demographic profile and also other data. In order to investigate the relationship between independent variables and dependent variable. reliability measure has been used to test the reliability of the variables. Finally.2.3. The researcher used different analysis to analyze the quantitative data generated by the dichotomous. the researcher used correlation analysis to test and achieve the objective. and Likert-scale questions. Statistical Package Social Sciences (SPSS) was used to administrate and analyze all the data. In addition.
Gender Cumulative Percent 48. As it seen in the Table and Figure 4.1: Frequency Table of Gender for Social Media Users
.0 FINDINGS AND ANALYSIS
4. the answers to the questionnaire were analyzed.1 Demographic Profiles
In order to achieve the “Aim 1” and create a general consumer profile of SMP in Malaysia. but female users outweigh the males. 52% of the respondents represented female and another 48% represented male.0
Valid Percent 48.0 52. The first question was designed in order to find out the dominating sex of Social Media Properties in Malaysia.0 100.0
Frequency Valid Male Female Total 48 52 100
Percent 48.1. the gender distribution among users is very similar.0 52.0 100.
1: Percentage of Gender for Social Media Users
0 28.2: Frequency Table of Groups of Age for Social Media Users
Figure 4.0 12.0 35.30 years 31 . It is possible to make an assumption that theses two groups are the main users of SMP from LSS Academy’s fan page in Facebook.0 100.As shown in the Table and Figure 4.40 year olds with the percentage of 28%. followed by 31 .0 100.0 12. Age Frequency Percent Valid Percent Valid Below 20 years 21 .0 60.0 35.40 years 41 years and above Total 25 35 28 12 100 25.0 100.0 88.2.0 25.0
Table 4. the respondents from 21 – 30 years age group where most keen in participating in the survey with the percentage of 35%.0 Cumulative Percent 25.0 28.2: Percentage of Age Group for Social Media Users
Table 4. and 17% of Malay.0 41. which represented 41% are Indian. majority of respondents.As shown in the Table and Figure 4.0 50.0 91.0
Valid Percent 17. This is followed by 33% of Chinese.0
Frequency Valid Malay Chinese Indian Others Total 17 33 41 9 100
Percent 17. Race Cumulative Percent 17.0 33.3: Percentage of Races for Social Media Users
.0 100.0 100.0 33.0 9. Other races such as Sikh and Caucasian represented the percentage of 9%.3.0 100.3: Frequency Table of Races for Social Media Users
Figure 4.0 41.0 9.
Nationality Cumulative Percent 66. another 34% are non-citizen. LSS Academy’s Facebook has international followers and customers since LSS Academy provide training not only in Malaysia. etc. most of the respondents who represented 66% are Malaysian citizen.0 100. China.0
Table 4.4: Percentage of Nationality for Social Media Users
.0 66.0 100.0
Frequency Valid Malaysian Non-Malaysian Total 66 34 100
Percent Valid Percent 66. but also in India.4.0 34.As shown in the Table and Figure 4.0 100. LSS Academy also has partnership with international consultation firm.4: Frequency Table of Nationality for Social Media Users
Figure 4.0 34.
followed by the income group of RM 3000 – RM 3999 (30%). majority of respondents who use SMP are from the income group of RM 2000 – RM 2999 (35%).0 Cumulative Percent 3.2 Awareness of SMP
. The least are from the income group of less than RM 1000. Monthly Income (RM) Frequency Percent Valid Percent Valid Less than 1000 1000 .0 35.0
Table 4.5. We can interpret that the two majority groups have stable monthly income.0 100.0 28.3999 4000 and above Total 3 28 35 30 4 100 3.0 4.0 30.0 35.0 66.As shown in the Table and Figure 4.0 30.5: Frequency Table of Monthly Income for Social Media Users
Figure 4.0 31.0 28.2999 3000 .0 4.0 100.1999 2000 .0 3.5: Percentage of Monthly Income for Social Media Users 4.0 96.0 100.
Valid Percent 89.0
Frequency Valid Yes No Total 89 11 100
Percent 89.7.0 100.Based on Table 4. which contribute the least percentage.0
Valid Percent 100.
Frequency Valid Yes 100
Percent 100.0 11.0
Cumulative Percent 89.6. We can say that.0 100. 100% or all respondents agree that they use SMP tools in their organization. most of us today realize the existence and usage of SMP.0
Cumulative Percent 100.6: Frequency Table of “Do you aware of Social Media Properties (SMP)?”
Based on Table 4. do not aware of SMP.0
Table 4.7: Frequency Table of “Do you / your organization use Social Media Properties (SMP) tools?”
. 89% of the respondents are aware of SMP and another 11%.0 11.
Frequency Valid Yes No Total 50 50 100
Percent 50.0 56.3 Interactions through SMP
. 56% of respondents (majority) have been using SMP for 2-3 years.0 50.0 56.9: Frequency Table of “Are you familiar with the concept of UserGenerated Content (UGC)?” 4.0 18.2 years 2 .0 50.3 years 3 years and above Total 26 56 18 100 26.0
Valid Percent 50. It is more than half.9.7.0
Cumulative Percent 50.0 100.0 26.Based on table Table 4.0 100.0 82.0
Cumulative Percent 26.0 100.0 18. It is equal.
Frequency Percent Valid Percent Valid 1 .0
Table 4. that’s mean most of them are aware of the usage of SMP for quite some time.0 100. and we can interpret that the term of UGC are rarely being applied by SMP users.8: Frequency Table of “How long have you been using this tool?”
Based on Table 4.0
Table 4. 50% of the respondents are not familiar with the concept of UGC and another 50% are familiar with the concept.0 100.0 100.
0 100.0 10. which means only 5 respondents use less than 1 hour for SMP per day.0 32.0 75. The least percentage is 5%.0 38. 32% of the respondents spend 1-3 hours for SMP per day.6 hours 7 .
.0 38.0 10.
How long do you spend your time for Social Media Properties (SMP) per day? Frequency Valid Less than 1 hour 1 .Did you (or will you) use Social Media Properties (SMP) recently? Cumulative Percent 100.3 hours 4 .0 Valid Percent 5.9 hours 10 hours and above Total 5 38 32 15 10 100 Percent 5.0 100.0 Cumulative Percent 5.0 100.0
Valid Percent 100.0 15.0 15.0
Frequency Valid • Yes 100
Percent 100.0 32.0
• • •
38% of the respondents spend 1-3 hours for SMP per day.0 43.0
All respondents (100%) were / will be using SMP recently.0 90.
0 57.0 16.0 100. 23% of the respondents use SMP tools for communication.0 7.0 Cumulative Percent 46.0 100.0 10.
.0 30.0 7.0 39.0 8. Blackberry. 30% of the respondents use SMP at the workplace.0 46.e.0 10.0
Communication Networking External Knowledge (blogs.0 30.0
Total 100 100.0 75.0 49.0 5.0 8.0 16.
19% of the respondents use SMP through on the go mobile (i.0 18.0 100.0 5. etc).0 81.0
Total 100 100.0 8.0 19.0 • The highest percentage.0 83.0 8.0 10. internal wikis) Hiring Marketing Community Involvement Customer Analysis Customer Service
23 16 10 8 18 8 7 10
23.0 46% of the respondents use SMP at home.From where do you use Social Media Properties (SMP) the most? Frequency Percent Valid Percent Valid Home Workplace Educational Institutions On the go Mobile • • • 46 30 5 19 46.0 10.0 90.0 18.0 100.0 76. Why do you use Social Media Properties (SMP) tools? Frequency Percent Valid Percent Cumulative Percent 23. iPhone.
0 100.0 57% of the respondents rate the use of technology in their organization as excellent.
Frequency Tables for Technographic Profiles of SMP users – Creator.0 Cumulative Percent 89.
How do you gauge the use of technology in your organization? Cumulative Percent 57.0 100.0 Valid Percent 100.0 23.0 89% of the respondents agree that SMP met their organizational goals.0 Cumulative Percent 100.0 100.0
Total 100 100. 23% rate as good.0 80.0 100.0 20. Spectator.0
Total 100 100.0 20. and Critic
Frequency Valid Excellent Good Fair • 57 23 20
Percent 57.0 Valid Percent 89.
Does Social Media Properties (SMP) provides any business advantage over traditional media? Frequency Valid • Yes 100 Percent 100.0 11.0 23.0
100% or all of the respondents agree that SMP provides business advantage over traditional media.Are Social Media Properties (SMP) tools met your business goals? Frequency Valid Yes No • 89 11 Percent 89. and none of them rate for poor.0
Valid Percent 57.0 11. Collector.
100. 17% are Critics. watch video or listen to audio) Creators (Publish a blog/website: upload your created videos/music: Write articles or stories and post them) Critics (Post rating/reviews: Comment on blogs and forums: contribute to articles or wikis) Collectors .Use RSS feeds.0
7.0 Cumulative Percent 42. add tags to web pages or photos) Total • and 10% are Collectors. Content Community) Spectators (Read blogs or customer reviews.0 42.0
100. 24% are Spectators.0
42% of the respondents are Joiners.0
7.Who are you the most? Frequency Percent Valid Percent Valid Joiners (Maintain a profile/an account on social media site: Social network.0
100. 42 42.0
17.5 23.6 41.0
The Social Media Properties (SMP) used by Creators Frequenc Valid Cumulative y Percent Percent Percent Valid Blogs ( Blogger. Digg.5 23.6 23. etc) Opinion Networks (Forums/Bulletin Boards) Total 3 4 17.8 100.0
11. Tumblr.7 88.8 100. Myspace.5 23.8 11. Hi5.2 ( Facebook.6 23.6 4 4 4 23.5 58.5 23.8 41. Flickr.0
100.5 Valid Percent 17.5 17. etc) Content Communities (Youtube.6
100. etc) Social Networks 2 11. etc) Microblog (Twitter.2
Make a purchase Trust the company more Interact more with the company Recommend the company to your friends Will interact more with other companies Total
100. 5 29.4 Wordpress.4 29.4 29.Most likely actions after the interaction with the company on SMP by Creators Frequency Percent 3 17.5 Cumulative Percent 17.6 23.
100.5 58. Flickr.4 Wordpress.8 41.8 100.6 23.6 4 4 4 23. etc) Opinion Networks (Forums/Bulletin Boards) Total 3 4 17.5 23.0
Statistics N Valid 42
100. 5 29.0
100. Xanga. Hi5.0
100.5 Valid Percent 17.2 ( Facebook.Most likely actions after the interaction with the company on SMP by Creators Frequency Percent 3 17.5 23.5 17. etc) Microblog (Twitter.4 29.8 82.4 29.6 23.2
Make a purchase Trust the company more Interact more with the company Recommend the company to your friends Will interact more with other companies Total
11. etc) Social Networks 2 11.7 88.6
17. Myspace. etc) Content Communities (Youtube.8 11.2 64. Digg.5 23.5 23. Tumblr.8 100.4
17.6 41.5 Cumulative Percent 17.0
The Social Media Properties (SMP) used by Creators Frequenc Valid Cumulative y Percent Percent Percent Valid Blogs ( Blogger.
5 Valid Percent 17.6 4 4 4 23.0
100.5 23.4 Wordpress.6 23.8 100.4
17. Xanga. etc) Social Networks 2 11.5 Cumulative Percent 17. Hi5.6 23. Myspace.7 88.0
11. Flickr. 5 29.5 23.4 29.6 41.6
17.2 64.8 82. Digg. etc) Opinion Networks (Forums/Bulletin Boards) Total 3 4 17.5 17.4 29.0
The Social Media Properties (SMP) used by Creators Frequenc Valid Cumulative y Percent Percent Percent Valid Blogs ( Blogger.5 23.8 11.8 100. etc) Content Communities (Youtube.6
Make a purchase Trust the company more Interact more with the company Recommend the company to your friends Will interact more with other companies Total
11.2 ( Facebook.Most likely actions after the interaction with the company on SMP by Creators Frequency Percent 3 17. Tumblr.8 41.0
100.5 58. etc) Microblog (Twitter.6 23.0
Statistics Missing 0
4. etc) Content Communities (Youtube.7 Cumulative Percent 16.0
.8 26. Hi5.8 26.2
4.7 16. Flickr. Wordpress. Tumblr.1 100.7
66. etc) Microblog (Twitter. Myspace.9
7.1 100.7 92.The Social Media Properties (SMP) used by Joiners Frequency Percent Valid Percent Valid Blogs ( Blogger. etc) Social Networks ( Facebook. Digg. etc) Opinion Networks (Forums/Bulletin Boards) Total 7 16.
8 21.8 21.0 Cumulative Percent 4.2 35.4 26.2 52.3 31.0
The external reasons for engagements by Joiners Frequency Percent Valid Percent Valid Reward Fast changing content Popularity of the content Relevant content Tools and platforms Total 2 9 11 15 5 42 4.9 100.9 100.8 26.4 88.0 100.7 11.0 100.3 33.The content preferred by Joiners Valid Percent 21.0
Frequency Percent Valid User-generated Content (UGC) Company provided content A mixture of both No difference Total 9 6 14 13 42 21.7 69.4 35.3 31.4 26.7 11.3 33.2 35.0 100.4 14.1 100.0 Cumulative Percent 21.4 14.0 4.
0 Cumulative Percent 21.The obstacles to interact on Social Media Properties (SMP) by Joiners Frequency Percent Valid Privacy Time Poor content Technology capabilities Not enough info No sharing Total 9 13 7 4 6 3 42 21.4 69.0
.3 7.6 92.4 31.0 16.1 100.1 100.5 14.3 7.0 Valid Percent 21.4 52.7 9.0 16.4 31.9 100.5 14.0 78.7 9.
The external reasons The content preferred for engagements by by Spectators Spectators N Valid Missing 24 0 The content preferred by Spectators Frequency Percent Valid User-generated Content (UGC) Company provided content A mixture of both No difference Total 5 3 6 10 24 20.2 100.5 25.8 20.0
8.0 79.8 12.3 58.0 41.7 100.8 12.8 20.7 100.0 Valid Percent 20.8 100.2 50.8 29.0
Cumulative Percent 8.3 100.3 29.5 25.3 20.3 20.0 24 0
The external reasons for engagements by Spectators Frequency Percent Valid Reward Fast changing content Popularity of the content Relevant content Tools and platforms Total 2 5 5 7 5 24
Valid Percent 8.8 100.0
.0 Cumulative Percent 20.2 20.2 20.8 33.8 29.
Statistics The external The Social Media reasons for Properties (SMP) engagements by used by Collectors Collectors N Valid Missing 7 0 7 0 The internal reasons for engagements by Collectors 7 0
The Social Media Properties (SMP) used by Collectors Frequency Percent Valid Blogs ( Blogger. Wordpress.3 Valid Percent 14. etc) Opinion Networks (Forums/Bulletin Boards) Content Aggregators (RSS) Total 1 14. etc) Social Networks ( Facebook. Flickr.0
28. Digg. etc) Content Communities (Youtube.0
14.3 Cumulative Percent 14.6
100. Hi5.6 100.1
4 85.7 100.0 Cumulative Percent 28.6 14.3 28.9 100.3 100.6 42.6 14.3 14.6 14.3 57.6 14.0 Cumulative Percent 28.3 28.6 14.3 100.9 71.0 Valid Percent 28.0
The internal reasons for engagements by Collectors Frequency Percent Valid Personal satisfication and actualization Brand myself Develop myself The feel of power and influence The sense of belonging to the community Total 2 1 2 1 1 7 28.6 42.1 100.3 57.1 100.The external reasons for engagements by Collectors Frequency Percent Valid Fast changing content Popularity of the content Relevant content Total 2 1 4 7 28.0 Valid Percent 28.6 14.3 14.0
0 100.0 30.0 30.0
.0 100.0 40.0 90.0 10.0 40.0 Valid Percent 20.Statistics The content preferred by Critics N Valid Missing 10 0 The external reasons for engagements by Critics 10 0 The internal reasons for engagements by Critics 10 0
The content preferred by Critics Frequency Percent Valid User-generated Content (UGC) Company provided content A mixture of both No difference Total 2 3 4 1 10 20.0 100.0 10.0 Cumulative Percent 20.0 50.
0 20.0 30.0
The internal reasons for engagements by Critics Frequency Percent Valid Personal satisfication and actualization Brand myself Develop myself The feel of power and influence The sense of belonging to the community Total 4 1 1 2 2 10 40.0 Valid Percent 10.0 20.0 20.The external reasons for engagements by Critics Frequency Percent Valid Reward Fast changing content Popularity of the content Relevant content Tools and platforms Total 1 2 2 3 2 10 10.0 50.0
.0 20.0 20.0 20.0 100.0 Valid Percent 40.0 20.0 20.0 20.0 100.0 Cumulative Percent 10.0 10.0 Cumulative Percent 40.0 30.0 10.0 30.0 80.0 100.0 10.0 100.0 10.0 80.0 100.0 20.0 100.0 50.0 60.
746 7 Based on the result.969 2 Based on the result. the researcher can interpret that the factor of interactions through SMP is reliable because the value of Cronbach’s Alpha is 0.969. which means the strength of association is low or poor.321. the researcher can interpret that the factor of awareness of SMP is not reliable because the value of Cronbach’s Alpha is 0.746.
Reliability Test for Interactions through SMP: Reliability Statistics Cronbach's Alpha N of Items
.321 4 Based on the result.
.Reliability Test for Awareness of SMP: Reliability Statistics Cronbach's Alpha N of Items
. which means the strength of association is very strong. the researcher can interpret that the factor of interactions through SMP is reliable because the value of Cronbach’s Alpha is 0.
Reliability Test for Creators: Reliability Statistics Cronbach's Alpha N of Items
. which means the strength of association is quite strong.
577** . p (<.577** . Correlation is significant at the 0. two tailed
There is a significant relationship between the awareness of Social Media Properties and the evaluation of social media effects on marketing communications.
.000 100 100 1 .01. r (sample) = result. p < 0.01 level (2-tailed).577. (2-tailed) N 100 .Correlation Analysis of Awareness of SMP:
Correlations Do you aware of How long Social Media have you Properties been using (SMP)? this tool? Do you aware of Social Media Properties (SMP)? Pearson Correlation Sig. (2-tailed) N How long have you been using this tool? Pearson Correlation Sig.=) number r (100) = 0.000 100 1
Correlation Analysis of Interactions through SMP:
100 .527** .926 100
. (2Social tailed) Media N Properties (SMP) per day? From where do you use Social Media Properties (SMP) the most? Why do you use Social Media Properties (SMP) tools? Are Social Media Properties (SMP) tools met your business goals? Pearson Correlation Sig.000 100
How do you Pearson
.948** .000 100 .000 100 .000 100
.000 100 . (2tailed) N Pearson Correlation Sig.872**
Why do you use Social Media Propertie s (SMP) tools? .377** .000 100
Pearson Correlation Sig.527** .345** .872** .921** .009 .377** .000
.948** .Correlations How long do you From spend where do your time you use for Social Social Media Media Propertie Properties s (SMP) (SMP) the per day? most? How long do Pearson you spend Correlation your time for Sig.468** . (2tailed) N 1 .000 100 100 Are Social Media Propertie s (SMP) tools met your business goals? .565** .926 100
. (2tailed) N
How do you gauge the use of technology in your organization ? .419** .419** .468** .
.01. Spectator. Joiner. r (sample) = result. (2-tailed) N 17 . two tailed
There is a significant relationship between technographic profiles of Social Media Properties users (Creator.01 level (2-tailed).Correlation Analysis of Technographic Profile:
Correlations Most likely actions after the interaction The Social with the Media company on Properties SMP by (SMP) used Creators by Creators Most likely actions after the interaction with the company on SMP by Creators The Social Media Properties (SMP) used by Creators Pearson Correlation Sig.000 17 17 1 . Collector) and the evaluation of social media effects on marketing communications. Critic. (2-tailed) N Pearson Correlation Sig.950. Correlation is significant at the 0. p < 0.950** .950** . p (<.000 17 1
**.=) number r (100) = 0.
According to technographic typology.0 Citizens were analyzed and the main differences between them were identified. 5 groups of Web 2. but the consumption patterns slightly differs from the consumers in other countries (US) and it differs amongst the 5 technographic consumer groups as well. it was identified that in general consumers prefers UGC rather than company provided content. the
. The relevance of the content is the single most important factor among all the consumers in Malaysia. The various Web 2.Finding 1: The Changing of Marketing Communication Environment and Consumers’ Profile in Malaysia. According to the research results. it was indentified that social media is changing the communication processes as the power shifts from company to the consumer and the meaning of the message itself is changing (content becomes the message). that social media in Malaysia penetrates into all aspects of daily life.0 properties were grouped and defined. It was noticed that the interactivity is much more personal in social media and is based on human to human interaction. but most of them see no difference between them or wants a mixture of both. The research found that social media environment comprises the features of medium and tool and is suitable for marketing to postmodern consumer.
The research had identified the general consumer profile within Malaysia market. Moreover. Moreover.
In the literature review the social media environment was analyzed and the main changes were indentified. It was noticed that.
the result suggest that different SMP have to be used in order to achieve different marketing communication goals. Therefore. the main findings can be summarized. but these communications push towards closer relationship with the company and are likely to outgrow into the monetary relationships. it could be concluded that interactions through SMP could result in positive outcomes for the company.0 citizens are their friends. Content communities and Blogs are most likely to cause grater relationships with the company and build trust. The interaction through Social networks.personal satisfaction or self-actualizing needs are driving the consumption and that the biggest influencers of Web 2. with a common trend that Content communities. The gathered data suggests that there is a relationship between SMP used and the positive outcomes after interaction. Moreover. 3 Hypothesis were tested. irrespectively from the message
Finding 2: The influence of SMP on the Consumers and Comparison with Traditional Media
In order to evaluate the influence of Social media as a medium for marketing communication campaigns. Surpassingly. according to gather data. According to the results. It was found that most of the consumers are afraid of losing time and privacy when participating in conversations within social media environment. who are most likely to affect their behaviors and “push” to the interactions. Blogs and Social Networks can be considered for Advertising and PR purpose.
As a result. In terms of media channels. In order to integrate social media in to the whole marketing communication campaign successfully they have to consider what other media channels are liked most by what type of group of consumers. it can be concluded that SMP could be a valuable channel in changing consumer’s attitudes towards the company. it can be stated that different types of consumers use different type of mediums. marketers have to consider that Web 2.0 citizens differ amongst themselves.
. according to the results from the consumers perspective there is no difference who initiates the interaction. it is important for them to approach the company by themselves or recommendations in order to spread positive word of mouth about the company. Due to this. Moreover. Finally. the assumption can be made that communications through SMP triggers the positive word of mouth.distributor consumers agree that the messages delivered through social media are likely to change their attitudes towards company or its products. In any case. it can be concluded that the company can start the conversation with the consumer on SMP without fear to annoy him / her. Therefore.
LSS Academy on the other hand.0 applications. but as it is still developing and changing. therefore the constant monitoring of SMP tools is required by marketing professionals and academics. As summarized in the findings. This research achieved its main goals and showed that the consumers welcome company’s initiatives to communicate through social media and the Web 2. and SMP itself. social media marketing.0 CONCLUSIONS AND RECOMMENDATIONS
The evolving media landscape and changing consumer behavior presents new challenges for marketing practitioners.
. Twitter. as this research just tested the theory that that social media is an effective marketing tool and channel. The growth of social media properties forces marketers to consider new tools in approaching the postmodern consumers. Youtube. discovers that the emerging of social media.0 applications can be used successfully as the new tools in marketing communication mix. and the rapid change of technology forces them to fully utilize the Web 2.5. It is clear that this media / marketing channel is here to stay. and other social media channels in order to reduce cost of advertisement and also to get engage with a long-term customer relationship. Even though. Hence. these tools vary depending from the consumers’ group. the further. LSS Academy also promotes and markets its products through Facebook fan page. media channel. possibly qualitative research is needed in order to understand the effectiveness of every tool on the consumer’s behavior.
culture. airlines. food. society. etc). hotels.
Web 2. government. Entire industries will consolidate over the next several years (automotive. and some will not make it. Many Fortune 500 companies will be confronted with their survival.0 also means reexamination or disruption of most areas of life.
Pervasive Web 2. except it is more powerful. The impact is similar to Ford’s production line.The implication of this research should mostly concern the marketing professionals as the data gathered provides interesting insights about the social media environment in Malaysia. ideas change and lead to action. Web communications mean we con116
. which accelerates volatility because when people talk. The Web 1. ramping strongly among consumers. Nevertheless. banking. thereby attracting an ever-larger portion of all human communications online. In 2009. consumer goods. so many enterprises are following. it gives an opportunity for other academic researchers to adapt or verify the presented theories in different marketing backgrounds. adoption reached critical mass. with withstand the volatility these forces are unleashing. and digital conversations happens faster and less expensively. it scales relationships.0 adoption rhythm is very instructive. and business because social networks alter how many and what kind of relationships people have. Social networks are rapidly making the Web human. Large organizations will remain in a profound state of turmoil because they were not built.0 and social networks drive down the cost of communication.
0 communication and empowerment are rapidly changing stakeholders’ expectations. define. Enterprise needs concrete answers for:
What are stakeholders (customers. understand. The good news is the way we make our transition to it will largely determine whether we survive or thrive. and expectations. investors. so companies need to be engaged with influencers. Company’s place in the value chain / web and the relationships with stakeholders will determine how immediately these trends affect us. In
general. Company needs to know how to show the right people how you care about them. The macro trends are economic uncertainty and increased collaboration tools. and engage the Web 2. regulators.
As for recommendations. skills. we can see that the Knowledge Economy represents a profound shift in society and business. It is no longer about having ads and “content” available.0 ecosystem. Enterprise should identify. how. it’s about interacting and creating relationships.
Nowadays. New entrants around the world compete for customers and leverage their lower costs and better innovation processes. and most companies do not understand how. which curtails product life cycles and leads to ultra-fast commoditization. partners. Companies will require unprecedented innovation to even stay in place. employees.sume novelty far more quickly.0 venues?
. and when to buy everything. customers are consulting each other on what. Web 2. alumni) doing in Web 2.
processes. Web 2. Keep in mind. our people and proxies have to learn how to act. Enterprise should develop resident skills with Web 2. you have to share your thoughts online. This might be LinkedIn Answers. and other players? Based on your culture. core competencies and business goals. MySpace or Yahoo forums.
Contribute to online forums frequented by stakeholders. For many companies.
. and sensibilities. it’s not a technology we can buy and put in place. Our presence will have a major impact on buying decisions. competitors.• • • •
Why they are into Web 2. Leave the latter for your website. wherever stakeholders are asking questions and solving problems. not about selling. and that’s a process we need to pursue aggressively. This is a strategic imperative because stakeholders will increasingly expect us to be available. industry forums prominent blogs. how can you engage efficiently and effectively?
Furthermore. No matter what your business is.0 and what are they trying to accomplish? Which venues do they use and how do they use each venue and why? How are they engaging with each other.0 is all about social behavior. 2010 will be the last year that they can move ahead of their competitors.
Blogging is about what we think. This also means engaging bloggers with impact on your stakeholders by commenting on their blogs.0 technologies.
Create a strategic dialog within the organization and with partners and people outside.
Develop a social business strategy that includes your overall approach considering risks. rewards and business strategy. Your company. Your availability to interact with stakeholders will increasingly drive your brand value because they will expect you to be present. This will proactively help to guide stakeholders’ expectations. and rich media. It’s not easy because people have to unlearn some key things that used to work but no longer do. timelines and resource requirements. in some cases counteracting each other. blogs. Having goals and meeting them collaboratively will significantly increase returns. employees and proxies need to learn how to do that. in 2010 and 2011.0 because changing stakeholder expectations will change our business.•
Deploy social business infrastructure internally to drive skill development and increase productivity.
The strategy will enable you to create a strategic dialog among management. kick off pilots in which teams use wikis. appropriate and sincere. goals. metrics and measurements. a risk-managed process to scale your initiatives. Enterprise should assign a top executive to manage our adoption of Web 2. microblogging. You need an adoption approach that considers the spec-
Next. executives are going to be doing remediation because social projects are happening all over the enterprise. social bookmarking.
People go to LinkedIn when they are looking for expertise.e. measure results.0 initiatives and use risk management best practices to maintain momentum. and engage “realistic enthusiasts” to understand IT’s capabilities and willingness to syndicate social content in from outside. here are some useful recommendations to keep track with Web 2.
In addition.0 is about interaction. Web 2. blogging. On LinkedIn. He / She should also be open to personally embracing social practices (i. and scale what is working. specific and rapid to shrink ROI discussions. Enterprise should create and maintain a relationship-centric mindset for your Web 2.
Your champion should have experience leading “innovation”-type initiatives that break rules and ruffle feathers. You can pay for content. Keep pilots small. this means:
As for individual. Enterprise should partner with IT on certain initiatives.0:
Start blogging. tweeting. Finally. not content. interacting online). Take your LinkedIn Profile up a level.trum of risks and focuses your efforts on rewards that move your business strategy. but your attention is priceless.
Commit to tweeting. give help. Invoking your blog posts on your profile with the WordPress or BlogLink Apps. Twitter is a new mode of communication that you need to understand because it is transforming communication and creating new kinds of relationships. You could have written 6 blog posts and answered 4 LinkedIn questions. At face-to-face networking events. it creates digital breadcrumbs that are always working for you. Cutting back on two events per month will give you more than enough time to ramp up online.
Putting your slides on your profile via Slideshare. or use it to our advantage. When you have a content strategy for your blog. where the leverage is far greater.
Cut back on unproductive networking. If you choose the LinkedIn questions you answer judiciously. We can choose to be creped out by that. When you are authentic and help people. and follow through on what you promise. other people see.0 environments. answer questions. Huge leverage. ask for help. In Web 2. other people are observing our interactions.
Participating in LinkedIn Answers: Answer others’ questions and ask questions. Make introductions. people will discover them at any time.
. Don’t fall into networking as an activity trap. the value dissipates much more quickly. so that you increase trust with people who count. this attracts attention.
Relentlessly conduct yourself.
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