GfK Next Generation LUROP Undergraduate Research Symposium Presentation 2014
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GfK’s Next Generation Marketing Research Competition Semifinalists’ present The Impact of Social Media on Consumer Involvement With businesses becoming increasingly global, social media marketing has become an indispensable and cost efficient tool for product branding, obtaining a representational consumer profile, increasing brand exposure, and directly interacting with the target market. Current social media marketing strategies are not as effective as they might be to accurately target consumers, generate attention- grabbing advertisements, establish brand loyalty, differentiate their brand, and provide a consumer experience to increase leisure in the consumer’s life. In order to generate insights that improve current business-to-consumer social media marketing strategies, cultivate innovation, and exceed revenue goals, an opportunity was found to collect data with the intention to discover opportunities that further consumer involvement with social media during the holiday season. Loyola University Chicago- Quinlan School of Business Nic Icaza Junior, Marketing Major | Louis Jaime Junior, Marketing and Entrepreneurship Major | Iris Wen Junior, Marketing Major Background Managerial Implications: The value in social media is assessed through the organization’s ability to foster consumer relationships. Social media users connect through their habits and desires, and social media marketing can promote brand visibility and increase engagement. During the holiday season, social media consumption can provide brand awareness and convey brand identity. This includes brand innovations, lead generation, and business-to-consumer communication. Associations existing between consumer involvement with social media and consumption patterns appear through the research, thus allowing organizations to better define their target audience for social media activity during holiday season. Research Objectives: Identify the visibility of social media marketing during the holiday season; Investigate consumers’ desired level of involvement through social media; Compare involvement of consumers on social media to business activities; And generate social media market strategies to further engage consumers in the holiday season. Social Media During the holiday season, 54 percent of consumers used social media to look for sales and discounts, also, researched gift ideas. Further, sharing and commenting on stores and sales were ranked second and third to the usage of social media, respectively. Since communication is an encompassing part of all social media platforms, the usage of social media for gift ideas showed a surprising 41 percent of social media users shared product reviews with friends online (“Usage of Social Media for Holiday Shopping in 2012”). Consumer Involvement In the past ten years, there has been a consistent growth in e-commerce; in 2013, retail e- commerce sales during the holiday months of November and December totaled $46.55 billion, an increase of over $4 billion dollars to the previous year (comScore). participants between the ages of 26 to 34 show the most interest in using social media to create a holiday wish list. The growing social media users between the ages of 35 to 54 show interest in using social media to sharing holiday offers. Since half of all social media users under the age of 35 follow their friends’ business recommendations, business-to-consumer activities on social media can have a significant impact on word-of-mouth marketing practiced online (Baur). 684,478 pieces of content are shared per minute 100,000 Tweets sent per minute 48 hours of video content are uploaded per minute Methodology Qualtrics Survey -Distributed Thanksgiving 2013 to mid- January 2014 -Distribution: Reddit, Facebook, Twitter, LinkedIn, e-mail, and word of mouth -“Gamified” experience, survey blocking, funnel approach, reduced bailout -26 questions: 19 nominal, 2 ordinal, 2 interval, 2 ratio questions Focus Group -6 participants that fell in the sampling frame -Held post-holiday season -Engagement questions were used for detailed insights from participants -Exploration questions investigated specific consumer perceptions In-depth Interview -3 participants conducted in person, on the phone, and over Skype -Held post-holiday season -Emphasized memorable advertising and promotions, brand awareness, and how the holiday season shapes social media activity Conclusion Visibility of Social Media Marketing 49.3% gift ideas generated from social media # 1 # 2 How communicate with consumers: - “Tell me about some advertisements you remember from the holiday season.” The responses implied that consumer recall is no better at the holiday season than it is at any other time during the year. Desired Involvement through Social Media 50% find excitement very important 51% used to research gift ideas 49.3% self-fulfillment is very important Smartphone & Computer users are more likely to connect with brands Facebook is the preferred social media platform for receiving product information and advertisements 36% of users sought special offers Social Media to Business Activities Top 3 Applications: -Increased Twitter usage observed during Black Friday and Cyber Monday Engage Consumer during the Holiday Season -While 62.5 percent of respondents acknowledged that they share photos through social media during the season, 84.9 percent don’t share videos. (implications from this finding could indicate that marketing communications be channeled through social media platforms where photo sharing is prevalent) -Awareness of brands and industries to produce more rich and engaging experiences - “I may also see what my friends’ ‘likes’ and ‘pins’ are to get inspiration for what they might want as a gift.” - Karen
Transcript of GfK Next Generation LUROP Undergraduate Research Symposium Presentation 2014
GfK’s Next Generation Marketing Research Competition Semifinalists’ present
The Impact of Social Media on Consumer Involvement
With businesses becoming increasingly global, social media marketing has become an indispensable and cost efficient tool for product branding, obtaining a representational consumer profile, increasing brand exposure, and directly interacting with the target market. Current social media marketing strategies are not as effective as they might be to accurately target consumers, generate attention-grabbing advertisements, establish brand loyalty, differentiate their brand, and provide a consumer experience to increase leisure in the consumer’s life. In order to generate insights that improve current business-to-consumer social media marketing strategies, cultivate innovation, and exceed revenue goals, an opportunity was found to collect data with the intention to discover opportunities that further consumer involvement with social media during the holiday season.
Loyola University Chicago- Quinlan School of BusinessNic Icaza Junior, Marketing Major | Louis Jaime Junior, Marketing and Entrepreneurship Major | Iris Wen Junior, Marketing Major
Background
Managerial Implications: The value in social media is assessed through the organization’s ability to foster consumer relationships. Social media users connect through their habits and desires, and social media marketing can promote brand visibility and increase engagement. During the holiday season, social media consumption can provide brand awareness and convey brand identity. This includes brand innovations, lead generation, and business-to-consumer communication. Associations existing between consumer involvement with social media and consumption patterns appear through the research, thus allowing organizations to better define their target audience for social media activity during holiday season.
Research Objectives: Identify the visibility of social media marketing during the holiday season;Investigate consumers’ desired level of involvement through social media;Compare involvement of consumers on social media to business activities;And generate social media market strategies to further engage consumers in the holiday season.
Social MediaDuring the holiday season, 54 percent of consumers used social media to look for sales and discounts, also, researched gift ideas. Further, sharing and commenting on stores and sales were ranked second and third to the usage of social media, respectively. Since communication is an encompassing part of all social media platforms, the usage of social media for gift ideas showed a surprising 41 percent of social media users shared product reviews with friends online (“Usage of Social Media for Holiday Shopping in 2012”).
Consumer InvolvementIn the past ten years, there has been a consistent growth in e-commerce; in 2013, retail e-commerce sales during the holiday months of November and December totaled $46.55 billion, an increase of over $4 billion dollars to the previous year (comScore).participants between the ages of 26 to 34 show the most interest in using social media to create a holiday wish list. The growing social media users between the ages of 35 to 54 show interest in using social media to sharing holiday offers. Since half of all social media users under the age of 35 follow their friends’ business recommendations, business-to-consumer activities on social media can have a significant impact on word-of-mouth marketing practiced online (Baur).684,478 pieces of content are shared per minute
100,000 Tweets sent per minute
48 hours of video content are uploaded per minute
Methodology Qualtrics Survey -Distributed Thanksgiving 2013 to mid- January 2014-Distribution: Reddit, Facebook, Twitter, LinkedIn, e-mail, and word of mouth-“Gamified” experience, survey blocking, funnel approach, reduced bailout-26 questions: 19 nominal, 2 ordinal, 2 interval, 2 ratio questions
Focus Group-6 participants that fell in the sampling frame-Held post-holiday season-Engagement questions were used for detailed insights from participants -Exploration questions investigated specific consumer perceptions
In-depth Interview-3 participants conducted in person, on the phone, and over Skype-Held post-holiday season-Emphasized memorable advertising and promotions, brand awareness, and how the holiday season shapes social media activity
ConclusionVisibility of Social Media Marketing
49.3% gift ideas generated from social media
# 1 # 2How communicate with consumers:
- “Tell me about some advertisements you remember from the holiday season.” The responses implied that consumer recall is no better at the holiday season than it is at any other time during the year.
Desired Involvement through Social Media
50% find excitement very important
51% used to research gift ideas
49.3% self-fulfillment is very important
Smartphone & Computer users are morelikely to connect with brands
Facebook is the preferred social media platform for receiving product information and advertisements
36% of users sought special offers
Social Media to Business ActivitiesTop 3 Applications:
-Increased Twitter usage observed during Black
Friday and Cyber Monday
Engage Consumer during the Holiday Season-While 62.5 percent of respondents acknowledged that they share photos through social media during the season, 84.9 percent don’t share videos. (implications from this finding could indicate that marketing communications be channeled through social media platforms where photo sharing is prevalent)
-Awareness of brands and industries to produce more rich and engaging experiences
- “I may also see what my friends’ ‘likes’ and ‘pins’ are to get inspiration for what they might want as a gift.” - Karen
