Impact of E-WOM through social media on consumer's purchase intention

7/21/2019 Impact of E-WOM through social media on consumer's purchase intention

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Arab Academy for Science and Technology & Maritime Transport

Faculty of Post Graduate studies

Thesis Titled

The impact of Electronic Word of Mouth (EW!M" through Socialmedia on #onsumer$s purchase %ntention

%n fulllment of

Master of 'usiness Administration Academic in Mareting

)*+,-)*+.

'y/ 0oha Fa12y Abdelader

3nder the Super4ision of

Professor Ahmed Shalaby

Table of Contents

Acknowledgements ..................................................................................................

................... II

Abstract ............................................................................................................................... ……..III



Key

Words .......................................................................................................................

..... …….IV

Abbreviations............................................................................................................

............. ……V Table of

Contents..................................................................................................................

……VI

#hapter +

1.1 ackgro!nd " T#e C#anging $ace of%arketing................................................................. .&

1.'(e)nitions........................................... ................................................................................... * 1.'.1 +ocial%edia............................................................................................................. * 1.'.' Cons!mere#avior............................................................................................... 11 1.'., -nline +ocial %edia Cons!mer

e#avior........................................................ 11

1., /roblem

(isc!ssion ..............................................................................................................1

1. -bectives -!tline of

t#esis ..............................................................................................1&

#hapter )

'. 2iterat!re

3eview ......................................................................................................................1

4

'.1

Inrtod!ction………………………………………………………………………………………………

…………………………14

'.' T#eoretical

ackgro!nd ...........................................................................................................1*

'.'.1 Word of

%o!t# .....................................................................................................................1*

'.'.' eW-% and

+5+ .....................................................................................................................'0



'.'., Cons!mers6 interaction in

eW-%..........................................................................................''

'.'. Cons!mers6 interaction in

+5+ ..............................................................................................'7

'.' T#eoretical$ramework ............................................................................................................'&

'.,.1 T#e im8act of eW-% on

cons!mers ....................................................................................'&

'.,.' T#e im8act of eW-% t#ro!g# +5+ on

cons!mers ...............................................................'4

'.,.'.' /!rc#ase

Intention .............................................................................................................'*

'. 9y8ot#eses 3esearc#%odel ................................................................................................,1

'..1 3esearc#9y8ot#eses ............................................................................................................,''..' 3esearc#%odel .....................................................................................................................,'

'.7+!mmary .................................................................................................................................,#hapter ,, 3esearc#%et#odology ........................................................................................................... .,7

,.1 3esearc#A88roac#. ............................................................................................................... .,7

,.'3esearc#+trategy……………………………………………………………………………………………………

………… ..,&

,.,%et#odsC#oice…………………………………………………………………………………………………………………. .,4,.:!antitativedata…………………………………………………………………………………………………………………. ,*,.7(ataAnalysis………………………………………………………………………………………………………………………… 0#hapter .

. (ata analysis 3es!lts '



.1Introd!ction…………………………………………………………………………………………………………………….……'

.' (escri8tion of t#e

+am8le………………………………………………………………………………………………..…..

.,/earsonCorrelation…………………………………………………………………………………………………………..…..7&

.9y8ot#esis Testing…………………………………………………………………………………………………………….…..74

.7:!alitative Analysis of +emi;str!ct!red interviews…………………………………………………………….….&

.7.1:!alititative Analysis of $oc!s <ro!8Interviews…………………………………………………………………&&#hapter 57. Concl!sions (isc!ssions...........................................................................................................&*

7.' T#eoreticalIm8lications............................................................................................................=0

7., 3ecommendations for $!t!reresearc#.....................................................................................='

7.+!mmary ...................................................................................................................................=,#hapter 6

&. 3eference2ist ..............................................................................................................................=

&.1 Articles ooks ........................................................................................................................=

&.' Web;sites ...................................................................................................................................47

#hapter 7

=.

A88endi> .....................................................................................................................................4&



=.1 A88endi> A?:!estionnaire .......................................................................................................4&A88endi> .$oc!s <ro!8Interviews…………………………………………………………………………………………..4=A88endi> C. +emi;str!ct!redInterviews……………………………………………………………………………………..*0

A88endi> ( 5estle +emi;+tr!ct!redInterview…………………………………………………………………………..101A88endi> ( Citroen +emi;+tr!ct!red Interview…………………………………………………………………………107

Acno1ledgementsWriting t#is t#esis #as been a very interesting and ed!cational e>8erience@ b!t att#e same time a very c#allenging and stressf!l one lots of time and eBort weredevoted to accom8lis# t#e best 8ossible res!lts. 9owever@ t#is st!dy wo!ld not#ave been 8ossible wit#o!t t#e #el8 and s!88ort of a n!mber of 8eo8le@ w#og!ided and enco!raged !s d!ring t#e w#ole 8rocess.

$irst of all@ my !tmost gratit!de and res8ect to my s!8ervisor@ /rof. A#med +#alaby@for 8roviding me wit# t#e academic g!idance@ for #is feedback@ #el8f!l advices andgood ideas t#at led me into t#e rig#t direction #is s!ggestions were of val!able#el8. 9is g!idance@ enco!ragement and 8atience t#ro!g#o!t t#e w#ole 8rocess

I wo!ld like to t#ank my 8arents and my brot#er for sec!ring to me t#e 8ro8erenvironment to st!dy for t#eir endless s!88ort@ for res8ecting t#is dream andlending me a #and w#enever I ran o!t of 8atience@ for t#eir emotional and )nancialbacking .9owever very s8ecial T#anks to my (ad for #is endless s!88ort and giving

me a ride to meet !8 wit# t#e interviewees and my s!8ervisor@ for driving me for#o!rs and waiting me for #o!rs@ for letting t#is dream come tr!e@ for #is fait# in me@for t#e reason for w#om I am now.

I also warmly t#ank my friend sister %argret %agdy for #er 8recio!s #el8 ands!88ort t#ro!g#o!t t#e writing of t#e dissertation.

I also want to e>8ress my gratit!de to my friend Amr mera for #el8ing me tocond!ct all t#e interviews wit# t#e com8anies.

2ast@ All my gratit!de goes to my )ancD and f!t!re #!sband 9es#am 9amdy for #isfait# in me@ for t#e endless s!88ort #e gave to me@ for #olding my tem8er w#en I

was down@ for 8!s#ing me forward to ac#ieve t#is dream. To All of you8 Than you so much9



Abstract

3esearc#ers@ com8anies and managers #ave for a long time acce8ted word;of;mo!t# as being a cr!cial marketing activity@ since it is e>tremely eBective

in s#a8ing cons!mers6 attit!des and be#avior. 5owadays@ T#e Internet #asbecome a maor 8art of many 8eo8les6 daily lives@ and social networkingsites attract millions of individ!als from all aro!nd t#e world. eca!se of t#is@word;of;mo!t# #as s#ifted to t#e digitaliEed world and a new term #as beendevelo8ed@ namely electronic word;of;mo!t#. lectronic word of;mo!t# #asbeen recogniEed to generate t#e same bene)ts to com8anies as word;of;mo!t#. (!e to t#e growt# of t#e Internet and social networking sites@electronic word;of;mo!t# #as t#e 8ower to reac# more 8eo8le and ist#erefore 8erceived as more inF!ential. T#is makes electronic word;of;mo!t#along wit# social networking sites@ two conce8ts to acknowledge. T#!s@ forcom8anies to make t#e most o!t of t#em@ t#ey need to gain t#e necessaryknowledge. T#e 8!r8ose of t#is researc# is to analyEe #ow cons!mers areaBected by electronic word;of;mo!t# t#ro!g# social networking sites.

In t#e s8eci)c area@ a researc# ga8 was noticed@ namely@ #ow electronicword of;mo!t# t#ro!g# social networking sites aBects cons!mers6 8!rc#aseintentions. ased on t#is ga8@ fo!r #y8ot#eses and a researc# model werecond!cted. T#e em8irical data was collected via G!estionnaire ' semistr!ct!red interviews and foc!s gro!8 interviews

It was revealed t#ro!g# t#e res!lts@ t#at electronic word;of;mo!t# t#ro!g#

social networking sites #as a direct 8ositive eBect on bot# cons!mers68!rc#ase intentions

:E;W!<=S/ lectronic word;of;mo!t#@ social networking sites@ cons!merbe#avior@ cons!mer aBection@ 8rod!ct 8erce8tion@ 8!rc#ase intention

Abbreviations

Abbreviation >8lanation+% +ocial %ediaW-% Word of %o!t#



;W-% lectronic Word ofmo!t#+5+ +ocial 5etworking +ites

#hapter + %ntroduction%ntroduction

+>+ 'acground ? The #hanging Face of Mareting

T#e recent emergence of +ocial %edia #as drastically c#anged t#emarketing landsca8e. $or /arker H'011@ 8'01@ t#e time of traditionalmarketing@ w#ere marketers were 8!s#ing o!t messages toward cons!mers!sing only a one;way comm!nication@ is over. 5owadays@ as said rown and9ayes H'004@ 81&7 Jads don6t work anymore in t#e real world beca!se t#ereare too many of t#em@ and beca!se t#ey interr!8t !s ina88ro8riately6. Incontrast wit# traditional media@ +ocial %edia #ave greatly c#angedrelations#i8s between cons!mers and com8anies by allowing a two;waycomm!nication H9oyer@ and %acInnis@ '010@ 8,4*. A new marketingf!nction called J+ocial %edia %arketing6 #as arisen.

T#is 8artic!lar tec#nical revol!tion d!ring t#e last decade #as drasticallyrevol!tioniEed t#e traditional marketing a88roac#es and bro!g#t marketersto a new era. In t#e new marketing era@ t#e social media #as likely to



revol!tioniEe t#e relationships marketers #ave wit# retailers@ c#annels ofdistrib!tion@ t#eir !ltimate cons!mers@ etc. It is an Information Age@ andcons!mers are in!ndated wit# overw#elming G!antities of information eac#and every day.

ased on t#e )ndings from %cKinsey H'011@ it #as revealed t#at w#en

com8anies go abo!t t#eir b!siness and interact wit# individ!als@ t#ey are

generating a tremendo!s amo!nt of digital e>#a!st data@L i.e.@ data t#at

are created as a by;8rod!ct of ot#er activities. +ocial media sites@ smart

8#ones@ and ot#er cons!mer devices #ave allowed billions of individ!als

aro!nd t#e world to contrib!te to t#e amo!nt of big data available.H%cKinsey

'011. CavaEEa H'010 said t#at +ocial %edia %arketing refers to t#e tools

and 8ractices !sed to identify and analyEe conversations@ to 8artici8ate and

initiate social interactions wit#in comm!nities and t#!s cons!mers. In

contrast wit# traditional media@ +ocial %edia oBer more 8ossibilities tomarketers to engage wit# c!stomers and #ave real interactions wit# t#em.

T#e marketing area #as t#!s evolved from a time w#ere marketers #ad t#e8ower of inF!ence to today w#ere cons!mers #ave a greater 8ower ofinF!ence on t#eir 8eers HMaBe@ '010. Indeed@ +ocial %edia enablecons!mers to s#are contents and ideas toget#er@ write recommendations@reviews and o8inions abo!t com8anies6 8erformance and to tell@ to a widera!dience t#an before@ abo!t t#eir own good or bad e>8erience wit# t#em

Hrown@ and 9ayes@ '004@ 81=*;140.

Cons!mers #ave access to a wide range of diBerent +ocial %edia ty8es@/latforms and tools@ wit# diBerent c#aracteristics and 8ossibilities t#at allowt#em to be connected and comm!nicate toget#er. +ago H'010 8= statedt#at +ocial %edia #ave signi)cantly im8acted #ow information is s#aredamong gro!8s of cons!mers.

Word;of;mo!t# 8lays a central role on +ocial %edia. Word;of;mo!t# is wellknown in t#e marketing area and t#is for decades. !t today@ word;of;mo!t#a88ears even more im8ortant t#an before in t#e inF!ence of cons!mers68!rc#asing decision;making 8rocess Hrown@ and 9ayes@ '004@ 81,*;1&.Indeed@ +ocial %edia can carry and s8read word;of;mo!t# between millionsof !sers@ like none of t#e ot#er c#annels #ave been able to do !ntil now. T#eC- of G!ired.com H'00* said t#at we are witness today of a f!ndamentals#ift in comm!nication beca!se of +ocial %edia tools. T#is s#ift #as beenmade 8ossible beca!se +ocial %edia !sage #as #ig#ly increased bycons!mers b!t also by marketers t#ese last years.

Alt#o!g# it #as been commonly known t#at W-% is a very 8owerf!l driverfor be#avior@ it is very diNc!lt to observe by researc#ers H/ark Kim@ '004.

Traditional W-% is verbal and t#erefore meas!ring and investigating itsindivid!al com8onents is e>tremely c#allenging. T#e 8roliferation of t#eInternet #as made cons!mer;generated 8rod!ct Information not only more



eBective b!t also easier to meas!re@ t#!s o8ening new /ossibilities forresearc#ers H/ark Kim@ '004. -nce electronic word;of;mo!t# H9encefort#e;W-% messages are comm!nicated@ t#ey are e>istent virt!ally forever@enabling researc#ers to isolate and meas!re single factors. Investigating e;W-% Com8onents are im8ortant since it oBers b!siness 8otential for bot#

advertisers as well as #osts of websites s8ecialiEed to cons!mer;generatedcontent H+ta!ss@ 1**= +ta!ss@ '000 %ari!ssen et al.@ '010.

In online comm!nities@ cons!mers e>c#ange o8inions regarding a variety of8rod!cts in a m!ltit!de of for!ms some cons!mers like to disc!ss 8rod!ctfeat!res on brand;s8eci)c online disc!ssion for!ms w#ile ot#ers oBer t#eire>8eriences regarding t#e 8rod!ct in a !sage sit!ation by writing onlinecons!mer reviews on 8rod!ct review websites. T#e o88ort!nities to read ande>8ress cons!mer generated information are endless.

;W-% messages are es8ecially im8ortant in online 8!rc#ases beca!secons!mers are !nable to 8#ysically see or to!c# t#e 8rod!ct@ w#ic# nat!rallydecreases t#e con)dence to 8!rc#ase HAlba et al.@ 1**=. In many 8rod!ctcategories and 8!rc#asing demogra8#ics@ t#is feel;eBect is t#e mostim8ortant criteria for t#e cons!mer@ es8ecially w#en im8!lse 8!rc#ases areconcerned HC#atteree@ '001. Con)dence to 8!rc#ase is es8ecially low if t#eavailable 8rod!ct information is limited to advertiser;generated informationonly HC#atteree@ '001. T#!s@ t#e online retailers !s!ally give cons!merst#e o88ort!nity to s#are and read abo!t cons!mers6 e>8eriences wit# t#e8rod!ct HC#atteree@ '001 C#en Oie@ '00.

Ps!ally t#e review contains a verbal message weig#ing t#e 8ositive andQornegative as8ects of t#e 8rod!ct followed by some formaliEed 8rod!ct rating.In addition@ t#e readers are able to rate t#e reviewer and indicate #ow#el8f!l or tr!stwort#y t#is individ!al and #isQ#er contrib!tions #ave been. T#is rating is visible to all readers and indicates #ow tr!sted t#is reviewer isby ot#er !sers H9enning;T#!ra! Wals#@ '00.

+ocial media 8!ts cons!mers back to t#e center of t#e b!siness world and

8rovides marketers a new set of tools to interact wit# cons!mers and to

integrate t#em into t#e brands t#ro!g# innovative ways. In essence@

marketers #ave to !nderstand #ow t#e social media #as inF!enced

cons!mer b!ying be#avior.

+>) =enitions+ ) + Social Media

+o!rce

%essa e

C#annel 3eceiver



According to vans H'004@ +ocial %edia relates to a self;generated@a!t#entic conversation between 8eo8le abo!t a 8artic!lar s!bect of m!t!alinterest@ b!ilt on t#e t#o!g#ts and e>8eriences of t#e 8artici8ants. T#erefore@ +ocial %edia is de)nitely all abo!t s#aring and aiming at acollective vision@ often intending to oBer a more;a88ro8riated or informed

c#oice at t#e end. $!rt#ermore@ +ocial %edia c#anges over time as it allows8eo8le to generate t#e content in a 8artici8ative way w#enever t#ey want toadd any additional 8iece of information. +ocial %edia are also evolvingconstantly as t#ey are 8art of internet #ig# tec#nologies@ w#ic# are modi)edreg!larly wit# additional or re8lacing feat!res.

+ocial %edia covers a wide variety of online and mobile@ word;of;mo!t#for!msincl!ding social networking websites@ blogs@ com8any s8onsored disc!ssionboards and c#at rooms@ cons!mer;to;cons!mer email@ cons!mer 8rod!ct orservice ratings websites and for!ms@ Internet disc!ssion boards and for!ms@

and sites containing digital a!dio@ images@ movies@ or 8#otogra8#s@ to namea fewL H9ollensen@ '011.

+ocial 5etworks@ or +ocial %edia +ites@ w#ic# are t#e main actors in t#e+ocial %edia medi!m@ can be de)ned as online comm!nities of 8eo8le w#oty8ically s#are a common interest or activity@ 8roviding a variety of ways for!sers to interact and #aving t#e ability to facilitate comm!nication.

+ocial %edia is growing every day. ven if *0R of t#e 14;' internet !sers

!se social network via any device at least once 8er mont#@ social mediaaBects every age gro!8 wit# m!c# #ig#er increase rates for t#e age gro!8sover ,7 H9!bs8ot@ '01'. Also@ w#en looking at t#e average #o!rs 8er weeks8ent on online activities@ we can de)nitely see t#at t#e world is becomingmore social@ wit# an average of .& #o!rs 8er week s8end on +ocial %edia+ites worldwide H$ig!re 1.

$ig!re 1? Average #o!rsQweek s8ent on online activities worldwide



Today@ online comm!nities #ave more and more inF!ence on cons!mers68!rc#asing decision;making. /arker H'011@ 8'&, stated t#at Jw#en 8eo8leare in t#e researc# or ed!cationL 8#ase of t#e b!ying cycle@ t#ey #aveaccess to a wider a!dience of c!rrent 8ast@ or 8ros8ective c!stomers

worldwide t#at t#ey can cons!lt before making t#eir decision6. Wit# +ocial%edia@ digitally em8owered s#o88ers #ave access to a wide range of newtools to )nd and researc# 8rod!cts and t#ey now cons!lt wit# 8eers ande>8erts HW#eat and (odd@ '00*@ 8. T#ese 8ossibilities oBered by +ocial%edia seem to be inF!ential at t#e Information

Wit# t#e emergence of +ocial %edia@ cons!mers #ave c#anged t#eira88roac# of cons!ming. T#ey are now com8aring 8rod!cts and servicest#anks to tools and websites s!c# as review and o8inions 8latforms t#atallow t#em t#ese com8arisons. T#ey can read reviews and ratings abo!t

8rod!cts@ services and com8anies 8erformance t#at are s#ared by t#eir8eers t#at #ad good b!t also bad cons!ming e>8eriences. $or!ms fore>am8le allow interactions w#ere t#ey can seek o8inions and ask G!estionsto more 8eo8le t#an before. +ocial %edia a88ear to be inF!ential on t#econs!mers at t#eir val!ation of Alternatives stage.

T#e traditional media 8ers8ective H$ig!re '@ we can recogniEe t#e basict#ree stages of t#e 8!rc#ase f!nnel. %any more stages can be added@ b!tt#ose t#ree are t#e basics one. $irst@ t#e a!dience becomes aware of t#e

brand@ 8rod!ct or service. T#en@ #e considers it as an event!al f!t!re8!rc#ase. And )nally@ #e takes t#e 8!rc#ase decision

$ig!re '? T#e Classical 8!rc#ase f!nnel for traditional mediaW#eat and (odd H'00*

-n t#e ot#er #and@ t#e contem8orary version of t#e 8!rc#ase f!nnel H$ig!re, incor8orates t#e +ocial %edia by s#owing #ow t#e !ser;generated mediain t#e 8ost;8!rc#ase e>8eriences can #ave im8acts on t#e basic stage ofconsideration w#ic# is !s!ally only 8art of t#e marketer;generated content.

$ig!re ,? T#e +ocial $eedback Cycle



W#eat and (odd H'00*

+>, Problem =iscussionW-% #as been acce8ted t#at it is vital in s#a88ing cons!mer6s attit!de andbe#aviors Hrown 3eingen@ 1*4=. And beca!se of digitiliEation W-% #as

been s#ifted to a new term ;W-% @ ;W-% is more inF!ential as it canreac# million of 8eo8le in a very s#ort time@ t#e researc#er c#oosed t#isto8ic to investigate t#e literat!re review and to test t#e researc# frameworkHmodel and t#e #y8ost#esis @ t#e researc#er wants to investigate w#ataBects cons!mer6s 8!rc#ase intention. +ocial media or t#e G!ality of e;womw#ic# means t#e e>tend to w#ic# t#e information received abo!t 8rod!cts orservices is not biased and t#e G!antity of e;wom w#ic# means t#e e>tend tow#ic# t#e n!mber of comments and reviewes can aBect t#e cons!mer6s8!rc#ase intention and t#e sender6s e>8ertise w#ic# meand t#e e>tend tow#ic# t#e so!rce is knowledgable wit# t#e 8rod!ct all t#ese variables will be

tested to #ave a concl!s!ion w#at aBectes t#e cons!mer6s 8!rc#aseintention

W-% comm!nication #as been a widely disc!ssed to8ic t#ro!g#o!t t#e

years@ and it #as been acce8ted t#at it is vital in s#a8ing cons!mers6

attit!des and be#aviors Hrown 3eingen@ 1*4=. +ome say t#at W-% is

m!c# more eBective t#an traditional marketing@ s!c# as advertisement

t#ro!g# news8a8ers@ radio and 8ersonal selling @ w#ile ot#ers state t#at it is

nine times as eBective as traditional marketing H(ay@ 1*=1. 9owever@ W-%

can eit#er occ!r nat!rally or be boosted by com8anies namely fertiliEedL

W-% HTr!sov@ et al.@ '00*.



T#is kind of W-% is biased and is t#erefore less eBective t#an organicL

W-% HIbid. 5evert#eless@ beca!se of digitaliEation@ t#ere #as been an

im8ortant s#ift from W-% to e;W-% H/rendergast@ et al.@ '010. ;W-% is

similar to traditional W-% in t#e way t#at it may be eit#er 8ositive or

negative@ b!t e;W-% can be diB!sed faster@ since it can reac# millions of

8eo8le@ making it more inF!ential t#an traditional W-% HIbid. Also@ in e;

W-%@ information can originate from an !nknown 8erson in contrast to

traditional W-%@ in w#ic# information is e>c#anged in a more 8ersonal way

H/ark 2ee@ '00*.

;W-% is an im8ortant factor to be analyEed by marketing researc#ers and

managers@ if we consider all t#e s8ecial c#aracteristics of t#e Internet@ s!c#

as t#e ability to be available to t#e general 8!blic for inde)nite time H9ennig;

T#!ra!@ et al.@ '00.%any #ave arg!ed t#at com8anies #ave to recogniEe

t#e im8act of W-% on cons!mers bot# negative and 8ositive W-%.Cons!mers are nowadays relying mostly on online information generated by

ot#er cons!mers to make decisions on f!t!re 8rod!ct 8!rc#ases H9!@ et al.@

'011. It is clear t#at brand awareness as well as information s#aring@

o8inions and attit!des are #ig#ly inF!enced by +% H%angold $a!lds@

'00*. +5+ 8latforms are on t#e rise and #ave already attained #!ndreds of

millions of !sers H3omero@ et al.@ '011. -ne of t#e fastest growing and most

8o8!lar Internet activities is to #ave at least one or more +5+ acco!nts

HIbid.$!rt#ermore@ +5+ allow marketers to engage in two;way

comm!nication wit# online cons!mers@ regarding 8ersonaliEed messagesand 8rod!ct related content H(!nne@ et al.@ '010. C#arlene 2i@ vice 8resident

and 8rinci8al analyst at $orrester 3esearc#@ stated t#at T#e more yo! know

and !nderstand t#e individ!als w#o make !8 t#e gro!nds well aro!nd yo!r

brand and yo!r com8any@ t#e more yo! can !se t#e new social networking

8#enomenon to yo!r advantageL H$orbes.

T#e '1st cent!ry #as been marked by a ra8id and contin!o!s growt# of +%H%angold $a!lds@ '00*@ and es8ecially +5+ and messages transmitted

t#ro!g# t#em HTr!sov@ et al.@ '00*. +5+ constit!te an ideal 8latform for e;W-%@ since cons!mers e>c#ange brand;related information t#ro!g# t#eironline social networks HVollmer /reco!rt@ '004 cited in C#! Kim '011.+5+ contacts may already e>ist in cons!mers6 establis#ed networks andt#erefore can be 8erceived as more tr!st wort#y t#an !nknown !sers t#ata88ear in ot#er +% 8latforms HC#! Kim@ '011. W#en e>c#anging e;W-%@an individ!al can become an o8inion 8rovider@ seeker and transmitter HIbid.In +5+@ o8inion seekers searc# for friends6 reliable recommendations ando8inion 8roviders s#are o8inions abo!t 8rod!cts wit# ot#er cons!mers HIbid.

It is clear t#at +5+ are an en#ancing tool for e;W-%@ and t#erefore a

bene)cial 8latform for com8anies@ since t#ey can reac# many cons!mers.ven t#o!g# W-% #as been an essential 8art of small and medi!m siEedb!sinesses H%arketing 8ilgrim & 8ercent of t#em do not !se +% for t#eir



b!siness HIbid. In order t#o!g#@ for t#e com8anies to be able to takeadvantage of W-%@ t#ey #ave to attain information abo!t cons!mers w#yt#ey interact in e;W-% on +5+ and #ow t#ey are aBected by it. y!nderstanding #ow cons!mers6 e;W-% be#avior is aBected in +5+@managers can incl!de +% in t#eir integrated marketing comm!nications

HC#! Kim@ '011.

T#erefore@ for com8anies and managers to be able to control and bene)tfrom e;W-%@ t#ey #ave to !nderstand t#e mec#anisms be#ind it@ andindicate t#e norms of cons!mer be#avior. T#e same a88lies for e;W-%t#ro!g# +5+. eing able to !nderstand #ow cons!mers are aBected by e;W-% t#ro!g# +5+@ can give t#e necessary knowledge t#at will enable t#ecom8any to make t#e most o!t of t#is 8#enomenon

+>. !b@ecti4es & !utline of thesis

T#e 8!r8ose of t#is st!dy is to analyEe #ow cons!mers are aBected by e;W-% t#ro!g# +5+.

T#e main conce8ts in t#e area of t#is t#esis are bro!g#t !8 in t#is c#a8ter. T#e im8ortance and necessity of e;W-% and +5+ are arg!ed in t#e 8roblemdisc!ssion. T#is st!dy aims to analyEe #ow cons!mers are aBected by e;W-% t#ro!g# +5+. T#is t#esis contin!es wit# t#e following main c#a8ters? T#eory In t#e literat!re review c#a8ter '@ t#e following will be 8resented abackgro!nd abo!t t#e role of W-%@ t#e im8ortance of e;W-% and +5+@ t#ereasons to w#y 8eo8le interact in e;W-% and +5+@ t#e im8act of e;W-%

t#ro!g# +5+ and t#e role of 8!rc#ase intention. And )nally t#e #y8ot#esesand researc# model will be drawn. C#a8ter , Methodology T#e met#odology c#a8ter will describe t#e way in w#ic# t#is researc# #asbeen done and t#e reasons to w#y t#e s8eci)c met#ods #ave been c#osen. T#e eBects of t#e selected met#ods will be e>8lained also. C#a8terAnalysis T#e analysis c#a8ter will start by 8resenting t#e descri8tive )ndings fromt#e G!estionnaire. T#e validity and reliability of t#is researc# will be tested. T#e 8rinci8al #y8ot#eses will be tested !sing a linear regression

#hapter 5 #onclusions T#e concl!sions and t#e res!lts of t#e #y8ot#eses will be 8resented in t#isc#a8ter. T#e t#eoretical and managerial im8lications will be dis8layed@ aswell as t#e limitations and s!ggestions for f!rt#er researc#.



#hapter ) iterature <e4ie1

)>+ %ntroduction T#e marketing landsca8e #as drastically c#anged in t#e last decade.efore@ com8anies and t#eir c!stomers #ad no direct link to eac#ot#er6s res8ective worlds HMaBe@ '010@ 81&0. T#e emergence of +ocial%edia #as c#anged t#e way cons!mers interact toget#er b!t also wit#com8anies. Cons!mers@ t#ro!g# t#eir growing !se of +ocial %edia andby !sing word;of mo!t#@ #ave now a 8owerf!l and even greaterinF!ence on 8eers. +ocial %edia 8latforms and tools allow !sers tos#are contents@ recommend 8rod!cts and tell abo!t t#eir 8ositive andnegative cons!mers e>8erience wit# com8anies Hrown@ and 9ayes@H'004@ 81=*;140.$otis@et@ al H'01'@ 81 reminded t#at (e Valck@ et alH'00* s!ggested t#at Jt#e virt!al comm!nities are becomingim8ortant networks of cons!mers knowledge t#at inF!ence cons!merbe#avior6. %oreover@ Wertime and $enwick H'004@ 8,1;71 added t#atJcons!mers are more likely to be 8artici8ating t#an watc#ing6 statingt#at t#ese last years we #ave been witness of a s#ift in t#e cons!merbe#avior from being Jcons!mers as viewers6 to cons!mers as8artici8ants6.

T#is c#a8ter starts by 8roviding a t#eoretical backgro!nd abo!t t#erole of W-%@ t#e im8ortance of e;W-% and +5+ and t#e reasons tow#y 8eo8le interact in e;W-% and +5+. $!rt#er@ in t#e t#eoreticalframework@ t#e im8act of e;W-% t#ro!g# +5+ and t#e role of 8!rc#ase

intention are 8resented.$inally@ t#e #y8ot#eses and researc# model are drawn and a s!mmarycom8iles t#e main t#eories reviewed in t#is c#a8ter.

)>) Theoretical 'acground

)>)>+ Word of Mouth/rior to 8!rc#asing decisions@ cons!mers collect 8rod!ct information to

red!ce t#e 8erceived risk of t#e !nknown HW! Wang@ '011./!rc#asing be#avior is determined by 8rod!ct involvement@ w#ic# is#ow im8ortant a 8rod!ct is to an individ!al t#e #ig#er t#e 8rod!ctsigni)cance is@ t#e #ig#er t#e 8erceived risk for t#e 8otential cons!merHibid.

%ost cons!mers !se vario!s c#annels to comm!nicate wit# t#ecom8anies and gat#er information to make a 8rod!ct;related decision

17



from bot# 8rint and electronic so!rces H3owley@ '001. In #er st!dy@3iegner H'00= identi)ed vario!s so!rces t#at inF!enced c!stomers68!rc#ase decisions. Accordingly@ t#e most 8o8!lar inF!ence isbrowsing retail stores and t#e second most 8o8!lar isrecommendations from close ties@ or W-% H3iegner@ '00=. +earc#

engines@ brand sites@ catalogs@ o!tdoor advertisement and !ser;generated sites are some of t#e ot#er inF!ential so!rces@ and it wasnoted t#at online so!rces were com8ared in a favorable way to oUineso!rces HIbid. ven t#o!g# in 3iegner6s H'00= researc# e;W-% wasfo!nd to be one of t#e least 8o8!lar so!rces@ s#e s!ggested t#at t#is isbeca!se it is still in an early stage@ in w#ic# it only #as an im8act ons8eci)c 8rod!cts and 8!rc#ase c#annels. 5evert#eless@ <odes and%ayElin H'00 arg!e t#at e;W-% #as a large inF!ence on brandattit!de and !dgment com8ared to ot#er inF!ential so!rces.

)>)>, EW!M and S0S

In t#e literat!re@ e;W-% #as often been referred to as t#e sameconce8t as viral marketing H9ennig;T#!ra! Wals#@ '00. T#eInternet is a vital com8onent of viral marketing@ since it is essentiallyW-% t#ro!g# electronic media and t#is is t#e maor diBerence

between viral marketing and W-% H<oyette@ et al.@ '010. +incetraditional W-% is similar to e;W-%@ t#e reasons t#at #ave been#ig#lig#ted in t#e literat!re@ as to w#y 8eo8le interact in traditionalW-%@ are also a88licable in e;W-% H9ennig;T#!ra! Wals#@ '00.5ot only t#e motives@ b!t also t#e connections t#at are fo!nd intraditional W-% are im8lementable in e;W-%@ since t#ey o8erate in asimilar way H+!n@ et al.@ '00& /rendergast@ et al.@ '010. Also@ t#et#eories t#at e>8lain #ow cons!mers are aBected by traditional W-%are transferable to an online environment H/rendergast@ et al.@ '010.

+5+ are based on t#e idea t#at a gro!8 of 8eo8le will oin a virt!al

comm!nity@ and t#en t#is initial gro!8 of 8eo8le will s8read invitations@or W-%@ for ot#er 8eo8le to oin t#is network too HTr!sov@ et al.@ '00*.+ocial websites are trying to attract !sers@ and enco!rage t#em tosocialiEe t#ro!g# t#em@ by !sing vario!s means and met#ods HKeenan +#iri@ '00*.

T#e eBectiveness of W-% #as been widely disc!ssed for a long 8eriodof time. +ome decades ago@ rooks H1*7= #ig#lig#ted W-% as of great

1&



im8ortance to marketing 8rod!cts and ma>imiEing t#eir sales. -t#erresearc#ers also em8#asiEed t#at W-% #ad t#e strongest inF!ence oncons!mers6 eval!ation on #ig# risk;8erceived 8rod!cts and t#at it #ast#e ability to s#a8e and mold ot#er cons!mers6 o8inions H(ic#ter@1*&& Arndt@ 1*&=.

T#e rise of t#e Internet@ #as increased cons!mers6 8ossibility to attain!nbiased o8inions on 8rod!cts H9ennig; T#!ra! Wals#@ '00 anden#anced t#e o88ort!nity to easily s8read t#ese o8inions to a largen!mber of 8eo8le H(ellarocas@ '00, 9ennig;T#!ra!@ et al.@ '00. T#etrans8arency@ siEe and accessibility of t#e Internet #ave givenmarketers t#e ability to inF!ence and monitor W-% HKoEinets@ et al.'010. %arketers w#o #ave seen t#e bene)ts of W-% #ave t#e 8owerto control some ty8e of e;W-% messages@ for e>am8le comments on

com8anies6 websites@ by deciding w#et#er to s#ow t#em or not H/ark Kim@ '004. If t#ey are to be s#own@ marketers are able to g!idecons!mers to 8ost comments in t#e way t#at t#e marketers wantHIbid.ven if com8anies do not #ave t#e means to ac#ieve t#is@ t#eynow #ave t#e 8ossibility to meas!re t#e im8act of W-%@ since t#ey areable to control w#at is being said abo!t t#eir 8rod!cts and cons!mers6attit!des towards t#e com8any@ and can t#erefore make necessaryad!stments H<oyette@ et al.@ '010.

9ennig;T#!ra!@ et al. H'00@ arg!e #ow im8ortant it is for marketers to8ay attention to e;W-%@ since o8inions online are available to a wide

s8an of individ!als for an !nlimited 8eriod of time. Also@ beca!se nowt#ey can reac# a wider a!dience at a lower cost H(ellarocas@ '00,@ e;W-% is e>tremely 8o8!lar@ and t#!s@ if e;W-% is managed well@ it #asa #!ge 8otential to transcend a 8rod!ct from a small market to a m!c#larger one H/ark Kim@ '00=.

W-% is 8erceived to be tr!stwort#y HArndt@ 1*&= one@ 1**7 <odes %ayElin@ '00 rown@ et al.@ '00=@ beca!se it is originated fromcons!mers w#o #ave no self; interest in t#e 8rod!ct HArndt@ 1*&=@ andalso it is believed to be !nbiased information originated fromcons!mers w#o are alike HAlso8@ et al.@ '00=. ;W-% #as a cr!cialinF!ence on cons!mers6 8!rc#ase intentions@ since t#ey rely on e;W-%before making a 8rod!ct 8!rc#ase H(o# 9wang@ '00*. Internet!sers do not follow comments 8osted online wit#o!t eval!ating t#emHC#e!ng@ et al.@ '00*. T#ey believe in o8inions abo!t a 8rod!ct t#atare s!88orted by a strong arg!ment. T#e o8inions need also to agreewit# t#e receivers6 beliefs as well as to be originated from atr!stwort#y so!rce HIbid. +ome negative comments can be bene)cial@

1=



beca!se if t#ere were only 8ositive o8inions online concerning a8rod!ct@ t#e tr!stwort#iness of t#e so!rce wo!ld decrease@ since itco!ld t#en believe to be originated from t#e com8any H(o# 9wang@'00*. In t#e st!dy done by (o# and 9wang H'00* it was fo!nd t#at*=.* 8ercent of t#e 8artici8ants tr!sted e;W-% before 8!rc#asing a

8rod!ct

).)>. #onsumers$ interaction in eW!M

;W-% in +5+ is a 8#enomenon w#ere cons!mers seek@ give orforward 8rod!ct;related information online t#ro!g# t#e a88lications oft#ese s8eci)c sites HC#! Kim@ '011. T#ere are )ve dimensions t#atinF!ence social relations#i8s and W-% as well as e;W-% intentions?tr!st@ inter8ersonal inF!ence@ tie strengt#@ so!rce credibility Hrown etal.@ '00=.

Tr!st is de)ned as a willingness to rely on an e>c#ange 8artner inw#om one #as con)denceL H%oorman@ et al.@ 1**,@ 8.4'. T#eliterat!re and st!dies s!ggest t#at tr!st is essential w#en e>c#angingo8inions in online comm!nities HC#! Kim@ '011 Marven8aa@ et al.@1**4. Accordingly@ t#e #ig#er t#e level of tr!st between individ!als@t#e #ig#er t#e 8ossibility of engaging in information seeking@ givingand 8assing HC#! Kim@ '011.

Inter8ersonal inF!ence is an inF!ential variable in cons!mer decisionmaking H!rnkrant Co!sinea!@ 1*=7. It consists of twodeterminants normative inF!ence@ w#ic# is t#e tendency of ada8ting

to ot#er 8eo8le6s e>8ectations@ by modifying one6s val!es andattit!des and informational inF!ence@ w#ic# is t#e tendency to acce8to8inions from 8eo8le w#o are knowledgeable abo!t t#e s8eci)c8rod!ct or brand HIbid. In t#eir st!dy@ C#! and Kim H'011 fo!nd a8ositive relations#i8 between inter8ersonal inF!ence and +5+ !sers6 e;W-% be#avior.

Tie strengt# is t#e 8otency of t#e bond between members of anetworkL H<ranovetter@1*=,@cited in %ittal@ et al.@ '004@ 8.1*&. stablis#ed 8rior relations#i8s between individ!als constit!te strong

ties@ for e>am8le family or friends@ w#ereas 8eo8le wit# no 8revio!srelations#i8 wit# eac# ot#er@ for e>am8le strangers or fellowcons!mers@ form weak ties Hrown 3eingen@ 1*4=. T#is variable wasfo!nd to #ave a 8ositive relations#i8 wit# o8inion seeking and 8assing@b!t it was not con)rmed to be related to cons!mers6 intention to giveinformation in +5+ HC#! Kim@ '011. C#! and Kim H'011 inter8rett#is d!e to t#e fact t#at +5+ !sers s#are t#eir 8rod!ct;related o8inions

14



wit# all t#eir online contacts@ even wit# 8eo8le t#ey don6t know t#atwell@ namely weak ties

$inally@ so!rce credibility refers to t#e e>tent to w#ic# t#e online so!rce

is e>8ert@ com8etent or biased in t#e information it carries Hrown@ etal.@ '00=. 5otably@ a credible so!rce obtains #ig# e>8ertise knowledgeand is not liable to bias HIbid. +t!dies #ave s#own t#at so!rcecredibility is 8redominantly eval!ated by t#e Web;site6s factors andsome eBort is given to eval!ate t#e individ!als 8roviding t#einformation on t#e s8eci)c Web;site HIbid. val!ations are based ons8eci)c online factors@ w#ic# are based on t#e Web;site6s w#olecontent and sense of a!t#orityL it generates rat#er t#an t#e individ!also!rce HIbid.

Pntil recently@ t#e iss!e of cons!mers6 e;W-% intention #ad not beendee8ly e>amined and t#erefore t#ere are no gro!nded t#eories orstable reasons for w#ic# cons!mers s8read e;W-% in +5+ HC#e!ng 2ee@ '01'. 5evert#eless@ t#ere #ave been a co!8le of st!dies t#at#ave e>8lored t#e motivations cons!mers #ave for engaging in e;W-%on Web;based cons!mer;o8inion 8latforms@ one of w#ic# is +5+. Int#eir st!dy@ 9ennig;T#!ra!@ et al. H'00 #ave investigated some oft#ese motives based on alas!bramian and %a#aan6s H'001 8revio!sresearc# and #ave concl!ded t#at t#ere are )ve cons!mer motivations@or as t#ey call t#em !tility so!rcesL.

$irstly@ focus-related utility is t#e !tility gained by adding val!e andstrengt#ening t#e comm!nity by t#e cons!mers6 contrib!tions@ s!c# asreviewing@ commenting and #el8ing ot#ers wit# 8!rc#ase decisionsH9enning;T#!ra!@ et al.@ '00. Pnder t#e !mbrella of t#is !tility@9ennig;T#!ra!@ et al. H'00@ 8.' identify fo!r motives? concern forot#er cons!mers@ #el8ing t#e com8any@ social bene)ts and e>8erting8owerL.

+econdly@ consumption utility is a 8ost;8!rc#ase advice;seekingmotivation for t#e cons!mer H9ennig;T#!ra!@ et al@ '00. T#econs!mer interacts in e;W-% to look for o8inions and 8revio!s

e>8erience to acG!ire t#e relevant skills to better !nderstand t#e8rod!ct HIbid.

T#irdly@ approval utility refers to an individ!al6s satisfaction derivingfrom w#en ot#er constit!ents cons!me and a88rove of t#econstit!ents own contrib!tionsL Halas!bramanian %a#aan@ '[email protected]'&. T#is feedback can eit#er be formal@ meaning t#at t#e 8latformo8erators make t#e rankings or informal@ meaning t#at a !ser 8!blicly

1*



or 8rivately congrat!lates anot#er !ser6s contrib!tions to t#e gro!8H9ennig;T#!ra!@ et al.@ '00. Two motives strongly related wit#a88roval !tility are self en#ancement and economic rewards HIbid.

$o!rt#ly@ moderator-related !tility is w#en a t#ird 8arty #el8s t#e

comm!nity member to com8lain in an easier way H9ennig;@ et al.@'00. %otives t#at are related wit# t#is !tility and e;W-% areconvenience and 8roblem;solving s!88ort by moderating t#e role oft#e 8latform HIbid.

$ift#ly@ homeostasis utility is concerned wit# e>8ressing 8ositive andnegative feelings to restore eG!ilibri!m after a dissatisfyingcons!m8tion e>8erience H9ennig;T#!ra!@ et al.@ '00. Accordingly@cons!mers balance t#eir emotions after s#aring t#eir 8ositive or

negative e>8eriences by commenting and s#aring t#eir feelings on ano8inion;s#aring 8latform HIbid.

)>)>5 #onsumers$ interaction in S0SWellman@ etal. H'001 arg!e t#at t#e time 8eo8le s8end online@ wo!ldbe more val!able by !sing it to s!bstit!te 8artly t#e face;to;faceinteractions. +everal st!dies s#owed t#at t#ere can be a 8ositiveo!tcome as far as t#e social ca8ital and t#e comm!nities evolve@ w#en8eo8le !se com8!ters for t#eir social interactions HKavana!g#@ et al.@'007 cited in llison@ et al.@ '00=. T#is !se of t#e Internet can be

bene)cial for 8eo8le wit# low emotional comfort d!e to weak socialties Harg# %cKenna@ '00. /eo8le t#at 8redominantly !se t#eInternet to connect wit# ot#ers@ do it to 8reserve e>isting contacts inlong distance relations#i8s HWellman@ et al.@ '001. In concl!sion@ t#egrowt# of online relations#i8s is not necessarily a sign t#at 8eo8le aredrawn away from t#e real world@ b!t instead t#ey are !sed tomaintaining contact wit# 8eo8le even w#en t#ey are not 8#ysicallyclose to eac# ot#er Hllison@ et al.@ '00=.

$indings in ibby H'004 and Coyle and Va!g# H'004@ s!ggested t#atkee8ing in to!c# wit# friendsL is t#e most common aim for !sing

social networking. +5+ are !sed tokee8 contact wit# bot# close andnon;close friends@ b!t it cannot s!bstit!te t#e 8ersonal oUineLsocialiEing of t#e individ!als HCoyle Va!g#@ '004. T#e researc# inCoyle and Va!g# H'004 concl!dedt#at 8ersonality is a signi)cantfactor determining 8eo8les6 interaction in +5+@ and t#is is consideredto be t#e most signi)cant res!lt@ since it can be !sed to determine a8attern in t#e +5+ !sage.

'0



In order for t#e com8anies to get t#e most o!t of e;W-%@ t#ey s#o!ldfoc!s on !sing t#e most eBective means in order to target t#e desiredgro!8 of 8eo8le HCoyle Va!g#@ '004. T#is task reG!ires money s8enton researc# and analysis@ b!t if taking into consideration t#e amo!nts8ent in general in +5+@ t#en t#e money is wort# s8ending HIbid.

$inally@ +5+ allow 8eo8le to e>8lore and demonstrate t#eir creativityt#ro!g# t#e !se of certain feat!res t#at@ among ot#ers@ allow t#em to8roect t#emselves@ by s#aring information abo!t t#eir 8ersonal life orgeneral interests Hibby@ '004.

)>, Theoretical Frame1or )>,>+ The impact of eW!M on consumers

Cons!mers seek W-% information 8rior to making decisions and8!rc#asing 8rod!cts HArndt@ 1*&= <odes %ayElin@ '00. W-% is of

big interest to com8anies@ since it is recogniEed to #ave an im8act oncons!mer be#avior and can aBect t#eir overall 8references H<odes %ayElin@ '00 one@ 1**7.

>8os!re to 8ositive W-% !s!ally leads to a 8rod!ct 8!rc#ase@ w#ile

negative W-% tends to #ave t#e o88osite eBect HArndt@ 1*&=.

3ecommendations available on;line@ can also #ave t#e same eBect and

increase a 8rod!cts overall sales@ since t#ey can #ave an im8act on

cons!mers6 o8inions regarding a 8rod!ct@ and t#erefore enco!rage a

8!rc#ase HC#e!ng@ et al.@ '00*. -n;line o8inions w#ic# #ave

originated from cons!mers #ave a 8ositive eBect on t#e receivers68rod!ct eval!ations and f!t!re 8!rc#ases H9ennig;T#!ra! Wals#@

'00 /ark@ et al.@ '00=@ and 8artic!larly t#ose o8inions t#at are

logical and well arg!ed wit# reasonable facts H/ark@ et al.@ '00=.T#e

amo!nt of comments available online are also s#own to increase

cons!mers6 8!rc#ase intentions@ since n!mero!s comments abo!t a

8rod!ct s!ggest t#at many 8eo8le #ave 8!rc#ased t#e 8rod!ct and

liked it H/ark@ et al.@ '00=. ;W-% #as increased in 8o8!larity and #as

become a cr!cial element d!ring cons!mers6 eval!ation of 8rod!cts

before making a 8!rc#ase H(o# 9wang@ '00*.

/rod!ct recommendations online #ave a #!ge inF!ence on t#ereceivers6 8rod!ct selections@ since it #as been con)rmed t#at t#osecons!mers w#o were confronted wit# a 8rod!ct recommendationonline were more likely to 8!rc#ase t#at 8rod!ct t#an t#ose w#o werenot H+enecal 5antel@ '00. In addition@ no signi)cant diBerence wasfo!nd between e>8erts and ot#er cons!mers relative to t#e inF!encet#ey #ad on cons!mers6 8rod!ct c#oices HIbid.5evert#eless@ some

'1



inF!ences are stronger t#an ot#ers Hansal Voyer@ '000. Ifcons!mers seek information regarding a 8rod!ct@ t#at information will#ave a bigger im8act on t#eir 8!rc#ase decisions HIbid. If a strongrelations#i8 among two cons!mers e>ists@ t#e information transferredbetween t#em will #ave a bigger im8act on t#e receiver6s 8!rc#ase

decisions too@ es8ecially if t#e sender is knowledgeable wit#in t#e areaof t#e 8rod!ct HIbid.

;W-% #as been acknowledged by many researc#ers to #ave asigni)cant im8act on cons!mers H3iegner@ '00= $erg!sson@ '004+!ng et al.@ '004 cited in 9ongwei@ et al.@ '01'. ;W-% is recogniEedto b!ild cons!mers6 brand awareness@ #el8s a com8any to create b!EEH$erg!sson@ '004 and #as an eBect on cons!mers6 brand loyaltyH+!ng@ et al.@ '004 cited in 9ongwei@ et al.@ '01'. ;W-% #as an eBecton 8!rc#ase intentions and decisions too@ b!t wit# some 8rod!cts moret#an ot#ers H3iegner@'00=. Cons!mers w#o 8!rc#ase 8rod!cts online

are more likely to be inF!enced by comments from ot#er cons!mersHIbid.

)>,>) The impact of eW!M through S0S on consumers.

Advertisement from com8anies on +5+ is most likely to be ignored by

t#e members@ since t#ese advertisements are com8any generated andt#erefore 8erceived as !ntr!stwort#y H(iUey@ et al.@ '011. Also t#efear of being e>8osed to vir!ses and t#at t#e advertisements were notof relevance to t#em make members ignore t#em HIbid

Cons!mers tend to seek information abo!t 8rod!cts on disc!ssion8latforms and t#ese 8latforms are 8erceived to be tr!stwort#y@ sincecons!mers believe it to be cons!mer generated HC#eong %orrison@'004. <iven t#e enormo!s growt# of +5+@ t#ese sites can be #!ge@w#en it comes to 8resentation of !ser generated comments HIbid.

Wallace@ et al. H'00* con)rmed t#at e;W-% t#ro!g# +5+ is m!c#more eBective in inF!encing cons!mers6 8!rc#ase intentions t#antraditional advertising t#ro!g# t#ese sites. +5+ can be !sed to s#areinformation abo!t oneself to ot#ers@ incl!ding !8dates of one6s recentactivities@ e>8eriences@ a88reciated t#ings and lifestyle H(!nne@ et al.@'010. A connection between +5+ and gro!8 acce8tance #as beenfo!nd and brand messages in +5+ do occ!r HIbid. Psers of some +5+

''



can become friendsL wit# a certain brand@ w#ic# is a way to s#ows!88ort for it@ and t#at in t!rn mig#t lead to 8ositive e;W-% HIbid.

W#en friends recommend a gro!8 t#at concerns a com8any@ t#e

receiver is m!c# more likely to oin t#at gro!8 too@ since friends often#ave similar interests H(iUey@ et al.@ '011. W#en cons!mers see8ict!res of 8rod!cts on t#eir friends6 8ro)les@ t#ey mig#t 8!rc#ase t#at8rod!ct@ if it #as made a good im8ression on t#em HC#eong %orrison@'004. Cons!mers6 attit!des towards 8rod!cts and com8anies can bes#a8ed by friends on +5+@ if t#eir comments are 8osted abo!t as8eci)c com8any or 8rod!ct@ since friends s#are similar interests andare 8erceived to be tr!stwort#y H(iUey@ et al.@ '011. If someone8ositively recommends or negatively eval!ates a 8rod!ct to anot#erfriend@ it im8acts t#eir be#avior towards t#e 8rod!ct HIbid. In t#eresearc# by +mit# H'00=@ it was fo!nd t#at cons!mers@ w#o #ad many

contacts in t#eir networks@ were more likely to be inF!enced by ot#ersand follow t#eir advice abo!t 8rod!cts.

ven t#o!g# it is con)rmed t#at 8eo8le connected on +5+ #ave astrong inF!ence on eac# ot#er and t#at t#ere is a #!ge 8otential in t#isarea for marketers@ t#is 8otential #as yet to be realiEed H(iUey@ et al.@'011.

)>,>)>+ Purchase %ntention/!rc#ase intention refers to t#e antici8ated be#avior of a cons!mer

regarding a f!t!re 8!rc#ase decision Hs8eel@ et al.@ '004. /recisely@ itis w#at kind of 8rod!ct to 8!rc#ase on t#e ne>t occasion. A 8!rc#aseintention is e>8ected o!tcome be#avior HIbid. /!rc#ase intention #asbeen meas!red e>tensively wit#in marketing and economic researc#and is often !sed to 8redict t#e sales of new 8ackaged 8rod!ctsHemmaor@ 1**7.

In t#e researc# done by /rice and $eick H1*4@ it was fo!nd t#at acons!mer6s 8!rc#ase intention is strongly inF!enced by t#e o8inions of friends@ family@ relatives or acG!aintances. A 8rod!ct6s 8o8!larity canbe establis#ed by t#e amo!nt of recommendations it #as generated

H/ark@ et al.@ '00=. Information generated fromCons!mers is eBective in forming ot#ers 8!rc#ase intentions and t#e8!rc#ase intention of a s8eci)c 8rod!ct is #ig#er wit#in #ig# involvedcons!mers HIbid.

',



T#at it #as an eBect only on certain 8rod!cts@ w#ile on t#e ot#er #andC#e!ng et al. H'00* and /ark et al. H'00= arg!ed t#at e;W-% caninF!ence cons!mers6 8rod!ct o8inions and f!t!re 8!rc#ases.%oreover@ e;W-% #as mostly been analyEed in s8eci)c conte>ts s!c#as cons!mers Jo8inion 8latforms and blogs. ven t#o!g# +5+ are t#e

most commonly !sed websites on t#e Internet H5ielsen1@ and manyresearc#ers #ave acknowledged t#eir 8otential@ not many st!dies #avee>amined w#et#er or not e;W-% on t#ese sites #as an im8act oncons!mers@ s8eci)cally aBecting t#eir 8rod!ct 8erce8tions and8!rc#ase intentions. Instead@ most researc# abo!t e;W-% #as beenfoc!sed on t#e reasons w#y cons!mers interact in e;W-% and +5+H9ennig;T#!ra!@ et al. '00 C#! Kim@ '011 C#e!ng 2ee@ '01'. T#e limited researc# done on #ow cons!mers are aBected by e;W-%t#ro!g# +5+@ #as only com8ared traditional advertising t#ro!g# +5+wit# e;W-% HWallace@ et al.@ '00* or st!dies #ave been cond!cted inIrelandH(iUey@ et al.@ '011@w#ic# makes t#eir researc# more conte>t

de8endent. T#is makes it very interesting to investigate and e>8lore e;W-% t#ro!g# +5+ and t#e eBect it #as on cons!mers6 8rod!ct8erce8tions and 8!rc#ase intentions.

We #ave also fo!nd a very limited amo!nt of information on #ow

diBerent cons!mer age gro!8s are aBected by e;W-% t#ro!g# +5+.

Wallace et al. H'00* is t#e only st!dy t#at was fo!nd to #ave noticed

t#at t#e 8!rc#ase be#avior of t#e age gro!8 17;' is more likely to be

aBected by e;W-%@ beca!se t#is generation is more involved in

comm!nication online. %oreover@ we #ave not fo!nd any literat!re

stating w#et#er men and women diBer on #ow t#eir be#avior isaBected by e;W-% t#ro!g# +5+. T#erefore@ it is also in o!r 8artic!lar

interest to investigate if gender and age #ave a moderating eBect on

t#e relation between e;W-% t#ro!g# +5+ and cons!mers6 be#avior

)>. Bypotheses & <esearch Model

)>.>+ <esearch Bypotheses

T#e researc# abo!t e;W-% t#ro!g# +5+ and its eBect is a 8ro8osalt#eory@ and is abo!t to be investigated in t#is st!dy. T#e literat!re t#at was em8loyed was s!itable for t#is researc#@beca!se it gave a general overview aro!nd t#e to8ic@ s#owing #ow t#ediBerent conce8ts are connected.

$!rt#ermore@ t#e researc#er noticed limited researc# regarding #ow e;W-% t#ro!g# +5+ aBects cons!mers6 8!rc#ase intentions. In addition

'



to t#is@ t#e researc#er t#inks t#at t#e conce8ts of 8!rc#ase intentionare of great im8ortance in cons!mer be#avior@ and t#at it wo!ld beinteresting to analyEe@ beca!se t#ese are two signi)cant ste8s t#at canlead to a f!t!re 8!rc#ase. ased on t#e literat!re@ t#e relation betweene;W-% t#ro!g# +5+ and cons!mers6 8!rc#ase intentions co!ld also be

bene)cial knowledge for com8anies and managers. T#is is beca!se ift#ey !nderstand w#at inF!ences cons!mers online in s#a8ing t#eir8erce8tion of a 8rod!ct and t#eir intention to b!y it@ com8anies andmanagers can take advantage of@ and bene)t from e;W-% t#ro!g#+5+.

T#e o8inions of friends@ family@ relatives and acG!aintances #ave astrong inF!ence on cons!mers6 8!rc#ase intentions H/rice $eick@1*4. %ore s8eci)cally@ e;W-% t#ro!g# +5+ #as far more inF!ence oncons!mers6 8!rc#ase intentions t#an traditional advertising HWallace@et al.@ '00*. We also fo!nd it im8ortant to contrib!te to t#e limited

researc# in t#is s8eci)c area and investigate if e;W-% t#ro!g# +5+ #asan im8act on cons!mers in a way t#at aBects t#eir 8!rc#aseintentions. 9ence@ we form!late #y8ot#esis as dis8layed below

Bypothesis #ontent

B+ ECposure to Social mediapositi4ely aDects consumer$spurchase intention

B) The uality of electronic 1ordofmouth positi4ely aDectsconsumers$ purchasing intention>

B, The uantity of electronic 1ordofmouth positi4ely aDects

consumers$ purchasing intention

B. Sender$s eCpertise positi4elyaDects consumers$ purchasingintention

'7



)>.>) <esearch ModelAfter taking t#e #y8ot#eses into consideration@ t#e researc#erreviewed similar researc# models related to t#is st!dy and ad!sted itand a new researc# model was formed H$ig!re '.1.

Pre4ious Model

Source: (Chinho Lin, Yi-Shuang Wu and Jeng-Chung Victor Chen,2013)

The <esearcher Model T#e left side of t#e model 8resents t#e inde8endent variableCons!mer6s 8!rc#ase intention and t#e rig#t side s#ows t#e de8endentvariables e>8os!re to social media and G!ality of ;W-% and G!antityof ;W-% and sender6s e>8ertise

'&

eW!M

uality

Sender

ECpertise

eW!M

uantity

Product%n4ol4ement

'rand%mage

Purchase%ntention



T#e 3esearc# framework of t#is st!dy

)>5 Summary

T#is c#a8ter #as 8rovided a brief literat!re review of 8revio!s st!diesrelated to t#e 8!r8ose of o!r researc#. $irst@ we establis#ed t#at e;W-% is a c#annel for cons!mers6 8rod!ct eval!ation@ and t#esigni)cance of e;W-% and +5+ were described. T#en@ we reviewedliterat!re describing t#e interaction in e;W-% and +5+. T#ereafter@ we8resented #ow cons!mers are aBected by e;W-% followed by #owcons!mers are aBected by e;W-% t#ro!g# +5+. In t#is area@ wenoticed t#at researc# was limited@ w#ic# lead !s to o!r #y8ot#eses and

researc# model.

#hapter , <esearch Methodology,> <esearch MethodologyIn t#is c#a8ter t#e met#odology of t#is researc# is 8resented. T#e wayin w#ic# t#e researc# #as been done and t#e reasons w#y t#e s8eci)cmet#ods #ave been c#osen are described. T#e eBects of t#e selected

'=

ECposure to SocialMedia

Cons!mer6

/!rc#ase

Intention



met#ods are e>8lained@ and at t#e end of t#e c#a8ter@ a s!mmary iscond!cted

,>+ <esearch ApproachAccording to +a!nders and al. H'00*@ 81';1'* O>>ii t#ere e>ist two

ty8es of researc# a88roac#@ ded!ctive and ind!ctive .(ed!ctivea88roac# is to develo8 a t#eory and #y8ot#esis in order to test t#e#y8ot#esis in order to con)rm or in)rm e>isting t#eory. And ind!ctivea88roac# is to develo8 a t#eory from t#e collection of data abo!t newsit!ation. $rom o!r researc#@ t#e researc#er fo!nd contents relativelynew in books@ articles@ videos or s!rveys. !t as t#is to8ic #as !stbeg!n to evolve recently@ we need to collect data in order to answero!r researc# G!estion. And ded!ction will #el8 !s to con)rm o!r)ndings from t#e literat!re review.

T#e a88roac# of t#is t#esis is ded!ctive. T#e fo!ndation of o!r

researc# is to test t#e literat!re review we cond!cted in t#e secondc#a8ter@ based on w#ic# we draw o!r #y8ot#eses. +8eci)cally@ t#eresearc#er )rst investigated t#e t#eory abo!t e;W-%@ +5+@ and t#ereasons for interacting in e;W-% and +5+. T#e researc#er alsoreviewed #ow cons!mers are aBected by e;W-% and +5+ individ!ally@b!t noticed limited researc# concerning t#e eBect of e;W-% t#ro!g#+5+ in 8!rc#ase intentions. $or t#is reason@ t#e researc#er c#ose t#is8artic!lar to8ic as o!r researc# investigation.

<esearch Strategies+a!nders et al. H'00=@ 81,7 identi)ed several researc# strategies t#atcan be !sed? e>8eriments@ s!rveys@ case st!dy@ action researc#@gro!nded t#eory@ et#nogra8#y and arc#ival researc#. $or t#e 8!r8oseof t#e dissertation@ I #ave !sed t#e s!rvey as a88ro8riate researc#strategies to answer t#e researc# G!estion H)g!re below.

T#e s!rvey strategy is related to t#e ded!ctive a88roac# !sed in t#eresearc# a88roac#. $ollowed t#is strategy a88eared as being wella88ro8riate to t#e researc# area and #el8ed to collect a large amo!nt

of data in a #ig#ly economical way H+a!nders@ et@ al@ '00=@ 81,4.

%oreover@ !sing s!rveys #el8ed me to reac# a lot of res8ondents@collect and analyEe a large amo!nt of data from a siEeable 8o8!lationfor free t#anks to t#e t#!s of Internet tools and 8latforms. To bestanswer t#e researc# G!estion t#ree ty8es of G!estionnaires #ave beencombined. I #ave )rst designed a self;administered G!estionnaire t#at#as been administered t#ro!g# t#e Internet by !sing +ocial media

'4



8latforms and tools and t#en I #ave !sed in an Interviewer;administered G!estionnaire@ t#e second G!estionnaire was designed asa semi;str!ct!red interviews. T#e self;administered G!estionnaire gaveme t#e large amo!nt of G!antitative data t#at was necessary to getval!able )ndings and answer t#e researc# G!estion. I #ave seen an

o88ort!nity to !se +ocial %edia to s#are t#e s!rvey since I believedt#at@ t#ro!g# t#eir !se of +ocial %edia 8latforms@ t#e res8ondents t#atare also cons!mers were already familiar wit# t#e area of researc# andt#e Jtec#nical6 terms !sed in t#e G!estions. 9owever@ as disc!ssedabove in t#e researc# a88roac#es 8art@ I also needed to collectG!alitative data. T#ese data #ave been collected t#anks to t#e semi;str!ct!red interviews and foc!s gro!8 interviews. T#ese interviewsallowed to go more in de8t# in t#e answers of res8ondents and #el8edme to know w#at im8lications arose from t#e answers of t#e )rstG!estionnaire. T#ese semi;str!ct!red interviews wit# two s8ecialist of+ocial %edia %arketing were very val!able to address t#e im8lications

for marketers related to t#e increasing inF!ence of ;W-% oncons!mers6 8!rc#ase intention. T#ese interviews t#at wereadministered to marketers 8rovided me wit# val!able answers. T#emarketers6 answers were really !sef!l since t#ey allowed me toconfront t#e t#eory wit# t#e reality on t#e )eld. And t#e foc!s gro!8interviews #el8ed me to go more de8t# wit# c!stomer6s 8erce8tionsand w#at aBects t#eir 8!rc#ase intention.Combining t#ese two ty8es of G!estionnaire a88eared t#!s to me asbeing t#e best met#od to collect t#e data necessary for t#e researc#.

Figure 5/ Types of uestionnaires (Saunders8 et al8 )**8p>,6,">

'*



Method choicesAccording to +a!nders and al. H'00*@ 8171;177 O>>vi G!antitative data collection is foc!sed on n!merical data and G!alitative data

collection is foc!sed on non;n!merical data.

We will !se bot# G!antitative and G!alitative in o!r researc# in order tomake a mi>ed; met#od researc#.

:!antitative data collection@ wit# ded!ctive a88roac#@ will be !sedfrom )ndings abo!t cons!mer attit!des #ig#lig#ted in t#e literat!rereview. And G!alitative data collection will be !sed@ wit# ind!ctivea88roac#@ in order to !nderstand and e>8lore be#avior of com8any.

In fact we !se G!alitative for Cons!mers com8any e>8erts

+o@ we will cond!ct a mi>ed met#od researc# in collecting andanalyEing G!antitative and G!alitative data@ one after t#e ot#er in aseG!ential way.

And t#en we will combine t#ose@ into t#e concl!sion@ in order toanalyEe cons!mer and com8any be#avior at t#e same time in order toanswer t#e researc# G!estion

,0



Figure 6/ <esearch choices (Saunders8 et al8 )**8 p>+5)">

uantitati4e data T#e sam8le of t#e G!antitative electronice G!estionnnaires was ,70#owever t#e researc#er received only ,00@ T#e researc#er c#osen torealiEe a s!rvey researc# wit# electronic G!estionnaires t#ro!g#

s!rveymonkey.com@ delivered on $acebook and via e; mail@ %oreover@in order to #ave more answers to t#e s!rvey@ T#e researc#er #ave also!sed t#e snowball met#od by asking t#e res8ondents to s#are t#es!rvey wit# t#eir own network of contacts on +ocial %edia. y doingt#is@t#e researc#er #ave s!cceeded to #ave a large amo!nt ofres8ondents and t#!s collected more data to analyEe.

;%!lti8le c#oices G!estions wit# m!lti8le answers;%!lti8le c#oice G!estions wit# one answer;And 2ikert scale from 1 to 7

Figure 7/ Sampling techniues (Saunders8 et al )**8 p)+,">

,1



,>7>, =ata analysisconcerning t#e analysis of G!antitative data@ sa!nders@ et al@ H'00*@

817 #ave identi)ed 8ersonal;com8!ter;based analysis software t#at

can be !sed. since@ t#e s!rvey will #ave diBerent meas!rement levels@

t#e analysis 8rovided categorical res8onses b!t also ordinal s!c# as

likert scale i #ave decided to !se microsoft e>cel software to enter t#e

data man!ally. i considered e>cel as being e>cellent software for data

analysis t#e )nal scores were t#en co8ied to I% +/++ software for t#e

correlation and regression analysis. t#e correlations and regression

were t#en com8!ted by +/++ software @Concerning t#e analysis of

G!alitative data@ t#e researc#er listened t#e recorded interviews and

wrote t#e most im8ortant as8ects t#at were of interest to answer t#e

researc# G!estion

#hapter . =ata Analysis.>+ %ntroduction T#is c#a8ter 8resents t#e res!lts of t#e statistical data analysis. T#e

data collection and analysis took 8lace to test t#e #y8ot#eses

,'



re8resented in c#a8ter , of t#e st!dy@ t#is c#a8ter is dedicated to t#e

8resentation of res!lts coming from t#e G!estionnaire and t#e semi;

str!ct!red interviews. T#is c#a8ter intends to 8resent t#e res!lts

wit#o!t trying to draw concl!sions. In a )rst 8art I will 8resent t#e

res!lts from t#e G!antitative analysis 8rocess and in t#e second 8art I

will 8resent t#e res!lts from t#e G!alitative analysis.

#omputing T#e com8!ting ste8s of t#e statistical G!antitative analysis were as

follows?

1; T#e answers for eac# G!estion for eac# 8artici8ant was entered

into e>cel. -ne s#eet was created for +!rvey re8ort.'; T#e score of eac# section of t#e G!estionnaire was calc!lated by

s!mming t#e answers of all G!estions in t#e section and t#en

dividing it by t#e n!mber of G!estions in t#e section to obtain t#e

average.

,; T#e )nal s!rvey score for eac# s#eet was obtained by calc!lating

t#e s!m of t#e 7 sections Hsection 1? :1 to :=@ section '? :4 to

10@ section ,? :11 to :1,@ section ? :1 to :1&@ section 7?:1=

to :'1@ t#en t#e o!tcome was divided by 7 to get t#e )nal

score.; T#e )nal s!rvey scores were t#en co8ied to I% +/++ software

for t#e correlation and regression analysis.7; T#e correlations and regression were t#en com8!ted by +/++

software.&; (escri8tive data of t#e sam8le Hgender and age were also

recorded for descri8tion 8resentation of t#e sam8le. <ender data

,,



were 8resented as 1%ale and '$emale@ w#ile age was

8resented as 1less t#an 1=@ '14;'@ ,'7;,@ ,7;@

77;7@&77;&

=; T#e scoring of t#e :!estionnaire meant t#at t#e minim!m score

wo!ld be 1 and t#e ma>im!m score wo!ld be 7

.>)>+ =escription of the sample

T#e sam8le !sed for my researc# is made !8 of ,00 res8ondents. 7&Rof my res8ondents are female and ,,., R are male and 11R!nidenti)ed H)g!re 4 below. As seen in )g!re * below@ *., R of

res8ondents are between '7 and , years old. And &=., R ofres8ondents are 8ost grad!ate st!dents

Figure H/ Gender of respondents (>))">

,



Figure / Age categories of the sample (>),"

Figure +*/ Education categories of the sample (>).">

.>)>) ECposure to Social Media

,7



As 8resented in )g!re11 below@ 40R of res8ondents #ave been !sing+ocial %edia for more t#an 7 years now. 17R #ave been !sing it for 'years to 7 years and '.=R between 1 and ' years. Concerning t#eaverage of #o!rs s8ent on +ocial %edia 8er week@ t#e )g!re 1' belows#ows t#at .,R of res8ondents said t#ey !sed +ocial %edia more

t#an 10 #o!rs 8er week@ '4.=R between 7 and 10 #o!rs and ''Rbetween ' to 7 #o!rs 8er week.

Figure ++/ Bo1 long consumers ha4e been using Social mediaI(>)"

Figure +)/ A4erage time spent on Social Media per 1ee (>,">As 8resented in )g!re 1, below@ cons!mers access +ocial %ediat#ro!g# diBerent devices. ,R of cons!mers !se tablet com8!ters and,,.=R !se smart8#ones. ,'.,R of cons!mers !se com8!ters.

,&



Figure +,/ =e4ices used by consumers to access Social Media

(>.">

As 8resented in )g!re 1 below@ cons!mers said t#at t#e +ocial mediasites t#ey are !sing on a daily basis 40.=R !ses $acebook and 11.=R!ses /#oto video s#aring sites HFicker@ So!t!be@ Instagram.

Figure +./ Social Media sites consumers are using on a daily basis(>5">

As 8resented in )g!re 17 below@ s#ows t#at =R of cons!mers agreedt#at t#ey are able to seek o!t 8rod!cts services information easily

t#ro!g# social media sites@ and '&., R strongly agree

,=



Figure +5/ #onsumers ability to see out information through

S0S (>6">

As s#own in )g!re 1& below@ '.= R of cons!mers agreed t#at t#eyreg!larly follow brands on +ocial %edia w#ereas '=.,R said t#at t#eyne!tral Hneit#er agree nor disagree

Figure +6/ #onsumers regularly follo1 brands on Social Media(>7">

.>)>, uality of EW!M$ig!re 1= below s#ows t#at 7,.,R of cons!mers agreed t#at t#eonline review is #el8f!l and 1*R strongly agree w#ile 14.=R ne!tral

,4



Hneit#er agree nor disagree.As seen in $ig!re 14 below@ 'R ofcons!mers agreed t#at t#e online review is credible w#ile ,&R ofcons!mers ne!tral Hneit#er agree nor disagree

Figure +7/ #onsumers see the online re4ie1 is helpful (>H"

Figure +H/ #onsumers see the online re4ie1 is credible (>"

As 8resented in t#e below )g!re 1*@ ,.=R of Cons!mers agreed t#at

t#e n!mber of reviews aBect t#eir 8!rc#ase intention@ w#ile '7.,R of

cons!mers t#at it6s ne!tral Hneit#er agree nor disagree

,*



Figure +/ #onsumer$s purchase intention aDected by numberof re4ie1s (>+*">

.>)>. uantity of EW!M

As 8resented in t#e below )g!re '0@ R of Cons!mers agreed t#at

t#e online reviews and comments of fas#ion clot#es 8rod!cts are

large w#ile '.=R of cons!mers said it is ne!tral Hneit#er agree nor

disagree@ And s#own in t#e )g!re '1 below@ ,*.=R of cons!mers

agreed t#at t#e online reviews and comments of 9ealt# ea!ty

8rod!cts are large@ w#ile '4.=R of cons!mers said it is ne!tral Hneit#er

agree nor disagree. And in )g!re '' s#ows t#at 0R of cons!mers

agreed t#at t#e online reviews and comments of electronics 8rod!cts

are large w#ile '.=R of cons!mers said it is ne!tral Hneit#er agree nor

disagree.

Figure )*/ 0umber of Fashion & #lothes online

re4ie1s-comments are large (>++"

0



Figure )+/ 0umber of Bealth& 'eauty products online re4ie1s &comments are large (>+)"

1



Figure ))/ 0umber of Electronics products online re4ie1s &

comments are large (>+,"

.>)>5 Senders ECpertise

As 8resented in t#e below )g!re ',@ R of Cons!mers agreed t#att#e 8erson w#o 8rovides online reviews and comments #ad a 8revio!s

e>8erience wit# t#e 8rod!ct@ w#ile '=.=R of cons!mers said it is

ne!tral Hneit#er agree nor disagree@ and in t#e )g!re ' below@ 7.=R

of cons!mers agreed t#at t#e 8erson w#o 8rovides online reviews and

comments #ave knowledge towards t#e 8rod!ct@ w#ile '=R of

cons!mers said it is ne!tral Hneit#er agree nor disagree@

Figure ),/ #onsumers trust in source ECperience 1ith the product(>+.">

'



Figure )./ #onsumers trust in source no1ledge to1ards theproduct (>+5"

As 8resented in t#e below )g!re '7@ ,=.=R of Cons!mers agreed t#att#e 8erson w#o 8rovides online reviews and comments #ave t#e ability

to !dge t#e 8rod!cts@ w#ile ,,R of cons!mers said it is ne!tral

Hneit#er agree nor disagree.

Figure )5/ #onsumers trust in the Source ability to @udgeproducts (>+6">

,



.>)>6 Purchase %ntentionAs 8resented in t#e below )g!re '&@ '=.=R of Cons!mers agreed t#att#ey c#eck online reviews comments before b!ying $as#ion Clot#es 8rod!cts@ w#ile ',R of cons!mers said its ne!tral Hneit#eragree nor disagree.In t#e )g!reH'= below s#ows@,'.=R of cons!mers

agreed t#at t#ey c#eck online reviews comments before b!ying9ealt# ea!ty 8rod!cts @ w#ile 'R of cons!mers said its ne!tralHneit#er agree nor disagree.@ In t#e )g!reH'4 8resented below s#ows@R of cons!mers agreed t#at t#ey c#eck online reviews commentsbefore b!ying lectronics 8rod!cts and 'R strongly agreed.

Figure )6/ #onsumers chec online re4ie1s before buying Fashion& clothes

products (>+7"



Figure )7/ #onsumers chec online re4ie1s before buying Bealth & 'eauty

products (>+H">

Figure )H/ #onsumers chec online re4ie1s before buying Electronics

Products (>+">

7



As 8resented in t#e below )g!re '*@ ,.=R of Cons!mers agreed t#at

t#ey tend to seek o!t 8rod!cts services disc!ssed in t#e online

reviews comments@ w#ile 'R of cons!mers said it is ne!tral

Hneit#er agree nor disagree@ And as s#owed in t#e )g!re H,0@,=R of

cons!mers agreed t#at t#ey tend to b!y in t#e f!t!re 8rod!cts

services disc!ssed in t#e online reviews comment@ w#ile ,'R of

cons!mers said it is it is ne!tral Hneit#er agree nor disagree.

Figure )/ #onsumers tend to see out products & Ser4icesdiscussed in the online re4ie1s (>)*">

&



Figure ,*/ #onsumers tend in the future to buy products & Ser4icesdiscussed in the online re4ie1s (>)+">

.>, Pearson #orrelation T#e correlation between t#e >8os!re of +ocial %edia and t#e /!rc#ase

intention 8artici8ants was signi)cant b!t moderate r H,00 .,'=@ p .

01.T#is res!lt means t#at t#e #ig#er t#e e>8os!re to social media t#e #ig#er

t#eir 8!rc#ase intention wo!ld be.

Correlations

ESPOSURE PURCHASEINT

ENTION

ESPOSURE

Pearson Correlation 1 .327**

Sig. (2-taile! ."""

N 3"" 3""

PURCHASEINTENTION

Pearson Correlation .327** 1

Sig. (2-taile! ."""

N 3"" 3""

**. Correlation is signi#i$ant at t%e "."1 le&el (2-taile!.

T#e second correlation between t#e :!ality of ;W-% and 8!rc#ase intention

was signi)cant and strong r H,00 .4'=@ p .01. T#is res!lt means t#at t#e

#ig#er t#e :!ality of ;W-% t#e more cons!mers6 8!rc#ase intention wo!ld

be.

Correlations

PURCHASEINT

ENTION

'UAIT)

PURCHASEINTENTION

Pearson Correlation 1 .2+**

Sig. (2-taile! ."""

N 3"" 3""

'UAIT)

Pearson Correlation .2+** 1

Sig. (2-taile! ."""

N 3"" 3""


T#e t#ird correlation between :!antity of ;W-% and 8!rc#ase intention was

signi)cant and strong r H,00 .4'0@ p .01. T#is res!lt means t#at t#e more

t#e :!antity of ;W-% t#e more cons!mers6 8!rc#ase intention wo!ld be.

=



Correlations

PURCHASEINT

ENTION

'UANTIT)

PURCHASEINTENTION

Pearson Correlation 1 .2"**

Sig. (2-taile! ."""

N 3"" 3""

'UANTIT)

Pearson Correlation .2"** 1

Sig. (2-taile! ."""

N 3"" 3""


T#e fo!rt# correlation between +o!rce >8ertise and 8!rc#ase intention wassigni)cant and strong r H,00 .41'@ p .01. T#is res!lt means t#at t#e

#ig#er t#e so!rce e>8ertise t#e more cons!mers6 8!rc#ase intention wo!ld

be

Correlations

PURCHASEINT

ENTION

SOURCEE,PER

TISE

PURCHASEINTENTION

Pearson Correlation 1 .12**

Sig. (2-taile! ."""

N 3"" 3""

SOURCEE,PERTISE

Pearson Correlation .12** 1

Sig. (2-taile! ."""

N 3"" 3""


.>. Bypotheses testing To be able to eval!ate if t#ere is a relation between t#e de8endent

variable and one or more inde8endent variables@ a linear regressioncan be a88lied H<#a!ri <ron#a!g@ '007. Wit# t#e 3 sG!are val!e@one can see #ow m!c# t#e variance of t#e de8endent variable ise>8lained by t#e inde8endent variable H%!is@ '00. T#e eta val!ewill s#ow #ow m!c# t#e de8endent variable will c#ange@ w#en t#einde8endent variable c#anges by one !nit HIbid. A signi)cance levellower t#an 0.07@ is ass!med to be a conventionally c#osen level ofsigni)cance H<#a!ri <ron#a!g@ '007.

4



.>.>+ Bypothesis +

91 stated t#at >8os!re to +ocial %edia #as a direct 8ositive im8act on

cons!mers J8!rc#ase intention. We got an 3X and ad!sted 3X val!es of 0.10=;

0.10@ as s#own in below Table w#ic# means t#at t#e variable >8os!re to+ocial %edia e>8lains 10. 8er cent of t#e variations in t#e variable

cons!mers 8!rc#ase intention. A signi)cance val!e of 0.000a@ indicates t#at

>8os!re to +ocial %edia for 8!rc#ase intention. As 8resented in below Table@

a +tandardiEed CoeNcient eta val!e of 0.,'= wit# a signi)cance val!e of

0.000a @ T#e res!lts s!ggest t#at it was statistically signi)cant 8ro8ortion F H'@

'** ,7.&'7@ p .0001.10= and .10 res8ectively means t#at t#ere is a

low degree of goodness of )t in t#e model. T#erefore 91 is reected.

Model Summary

oel R R S/are A0/ste R

S/are

St. Error o# t%e

Estiate

1 .327a .1"7 .1" .1+3

a. Prei$tors4 (Constant!5 PURCHASEINTENTION

ANOVAa

oel S/ o# S/ares # ean S/are 6 Sig.

1

Regression .1+3 1 .1+3 3.2 ."""8

Resi/al 1."3 2+ .17

Total 7.++ 2++

a. 9e:enent ;aria8le4 ESPOSURE

8. Prei$tors4 (Constant!5 PURCHASEINTENTION

Coefficientsa

oel Unstanari<e Coe##i$ients Stanari<e

Coe##i$ients

t Sig.

= St. Error =eta

1(Constant! 2.+ ."2 1.73 ."""

PURCHASEINTENTION .11" ."1 .327 .++ ."""

a. 9e:enent ;aria8le4 ESPOSURE

*



.>.>) Bypothesis )

9' stated t#at :!ality of ;W-% #as a direct 8ositive im8act on cons!mers

J8!rc#ase intention. We got an 3X and ad!sted 3X val!es of 0.&44;0.&4=@ as

s#own in below Table w#ic# means t#at t#e variable :!ality of ;W-%

e>8lains &4.4 8er cent of t#e variations in t#e variable cons!mers 8!rc#aseintention. A signi)cance val!e of 0.000a@ indicates t#at :!ality of ;W-% for

8!rc#ase intention. As 8resented in below Table@ a +tandardiEed CoeNcient

eta val!e of 0.4'* wit# a signi)cance val!e of 0.000a @ T#e res!lts s!ggest

t#at it was statistically signi)cant 8ro8ortion F H'@ '** &7&.',0@ p .

0001.&44 and .&4= res8ectively means t#at t#ere is a #ig# degree of

goodness of )t in t#e model. T#e concl!sion t#at t#e :!ality of ;W-% and

8!rc#ase intention signi)cantly related to eac# ot#er@ T#erefore 9' is

s!88orted.

Model Summary


S/are

St. Error o# t%e

Estiate

1 .2+a . .7 .172


ANOVAa


1

Regression 27.+7 1 27.+7 .23" ."""8

Resi/al 112." 2+ .37Total 3".3 2++

a. 9e:enent ;aria8le4 'UAIT)


Coefficientsa


Coe##i$ients

t Sig.

= St. Error =eta

1(Constant! 1.1" ."+2 12." ."""

PURCHASEINTENTION .+7 ."27 .2+ 2.17 ."""

a. 9e:enent ;aria8le4 'UAIT)

.>.>, Bypothesis ,

70



9, stated t#at :!antity of ;W-% #as a direct 8ositive im8act on cons!mers

J8!rc#ase intention. We got an 3X and ad!sted 3X val!es of 0.&=';0.&=1@ as

s#own in below Table w#ic# means t#at t#e variable :!antity of ;W-%

e>8lains &=.' 8er cent of t#e variations in t#e variable cons!mers 8!rc#ase

intention. A signi)cance val!e of 0.000a@ indicates t#at :!antity of ;W-% for

8!rc#ase intention. As 8resented in below Table@ a +tandardiEed CoeNcienteta val!e of 0.4'0 wit# a signi)cance val!e of 0.000a @ T#e res!lts s!ggest

t#at it was statistically signi)cant 8ro8ortion F H'@ '** &10.04&@ p .

0001.&=' and .&=1 res8ectively means t#at t#ere is a #ig# degree of

goodness of )t in t#e model. T#e concl!sion t#at t#e :!antity of ;W-% and

8!rc#ase intention signi)cantly related to eac# ot#er@ T#erefore 9, is

s!88orted.

Model Summary

oel R R S/are A0/ste RS/are

St. Error o# t%eEstiate

1 .2"a .72 .71 2.31+


ANOVAa


1

Regression 323.3+ 1 323.3+ 1"." ."""8

Resi/al 1"3.7+2 2+ .32

Total 7.17 2++

a. 9e:enent ;aria8le4 'UANTIT)


Coefficientsa


Coe##i$ients

t Sig.

= St. Error =eta

1 (Constant! 1.++ .3 .7 ."""

71



PURCHASEINTENTION 2.3 .1"3 .2" 2.7"" ."""

a. 9e:enent ;aria8le4 'UANTIT)

.>.>. Bypothesis .

9 stated t#at +o!rce >8ertise #as a direct 8ositive im8act on cons!mers

J8!rc#ase intention. We got an 3X and ad!sted 3X val!es of 0.&7*;0.&74@ as

s#own in below Table w#ic# means t#at t#e variable +o!rce >8ertise

e>8lains &7.* 8er cent of t#e variations in t#e variable cons!mers 8!rc#ase

intention. A signi)cance val!e of 0.000a@ indicates t#at +o!rce >8ertise for

8!rc#ase intention. As 8resented in below Table@ a +tandardiEed CoeNcient

eta val!e of 0.41' wit# a signi)cance val!e of 0.000a @ T#e res!lts s!ggest

t#at it was statistically signi)cant 8ro8ortion F H'@ '** 7=7.'7'@ p .

0001.&7* and .&74 res8ectively means t#at t#ere is a #ig# degree of

goodness of )t in t#e model. T#e concl!sion t#at t#e +o!rce >8ertise and

8!rc#ase intention signi)cantly related to eac# ot#er@ T#erefore 9 iss!88orted.

Model Summary


S/are

St. Error o# t%e

Estiate

1 .12a .+ . .711+


ANOVAa


1

Regression 31." 1 31." 7.22 ."""8

Resi/al 11.+ 2+ .1"Total 32.+1 2++

a. 9e:enent ;aria8le4 SOURCEE,PERTISE


Coefficientsa

7'




Coe##i$ients

t Sig.

= St. Error =eta

1(Constant! .+3 .117 .22 ."""

PURCHASEINTENTION .2+ ."3 .12 23.+ ."""

a. 9e:enent ;aria8le4 SOURCEE,PERTISE

.>5 ualitati4e analysis (SemiStructured %nter4ie1s">

.>5>+ Prole of %nter4ie1ees• 9es#am EE l;Arab %arketing and !siness +trategy -NcerL

+ince '010 in t#e %arketing and Comm!nication de8artment atCitroYn in gy8t.

• -mar Kamel@ +ocial %edia %anagerL in '011 in t#e %arketing

Comm!nications de8artment at 5estle gy8t.>5>) Social Media usage in companiesot# com8anies I interviewed !se social %edia@ b!t similarities anddiBerences a88ear in t#e 8latforms and tools !sed. Citroen and 5estlebot# !se $acebook to Jinform fans Hc!stomers abo!t t#e new 8rod!ctsand services6. ot# com8anies !se $acebook to comm!nicate abo!tt#eir marketing cam8aigns and la!nc# events. T#e st!dy indicated t#at +ocial %edia !sage de8ends of com8anies6obectives and targets. -mar Kamel@ from 5estle gy8t@ added t#att#ey recently started to !se So!T!be to create interactive contents toengage wit# t#eir c!stomers.

.>5>) Social Media to engage 1ith customers and build loyalty T#e interviews indicated t#at bot# com8anies see +ocial %edia as agood way to engage wit# t#eir c!stomers and 8rovide a goode>8erience online. If c!stomers #ave a good e>8erience online t#eywill Jfeel !nderstood@ listened by t#e brand and will be more likely to gointo o!r stores6@ 8roviding a good e>8erience to c!stomers 8lays a rolein t#eir cons!m8tion6. (amien MacG!es stated t#at J#aving a connection

7,



wit# t#e !sers t#ro!g# +ocial %edia #el8s !s to establis# a very long;term relations#i8 t#at can lead to cross sell6.

To t#e G!estions asking if com8anies s#o!ld allow cons!mers to s#aret#eir o8inions on t#e com8anies6 +ocial %edia 8ages@ bot# interviewees

answered t#at interaction is t#e matter of +ocial %edia. %oreover@ t#einterviews indicated t#at by listening to t#eir c!stomers@ com8aniesco!ld #ave more c#ance to know w#at t#ey e>actly want and co!ldt#!s better ada8t 8rod!cts to t#eir c!stomers6 needs. Abo!t t#e im8actof bad comments@ bot# interviewees said t#at t#ey )rst tried to!nderstand Jw#at went wrong6 in order to be able to resolve t#e8roblems. If t#e 8roblems #ave been 8roved to be t#e com8anies6res8onsibilities@ 5estle gy8t directs its c!stomers to t#e c!stomerservice to reward t#em and Citroen oBers disco!nts on t#e ne>t8!rc#ases. y doing so@ 5estle Citroen #o8es to oBer a better seconde>8erience to im8ress t#eir c!stomers t#at will say on t#eir )rst

comments t#at t#e brands really cared abo!t t#em. T#e st!dyindicated t#at t#e key was to react really G!ickly in order not to let t#ebad comments s8read all over +ocial %edia. y reacting G!ickly@ t#ey8roved to t#eir c!stomers t#at t#ey were listened to by t#e brands. To t#e G!estion Js#o!ld com8anies reward good commentsZ6 t#einterviews 8ointed o!t t#at 5estle and 5estle gy8t #ad same visions..ot# said t#at com8anies s#o!ld identify JinF!encers6 on +ocial %ediaand s#o!ld send t#em targeted rewards s!c# as invitations to s8ecialevents or to try s8ecialQnew 8rod!cts.Concerning t#e !se of +ocial %edia to b!ild loyalty@ bot# intervieweest#ink t#at com8anies s#o!ld seiEe t#e o88ort!nity oBered by +ocial

%edia to b!ild loyalty wit# t#eir c!stomers.

.>5>, Social Media 4ersus Traditional Mediaot# interviewees t#ink t#at com8anies s#o!ld not abandon traditionalmedia to only foc!s on +ocial %edia. T#e st!dy indicated t#at t#emedi!m s#o!ld de8end on t#e target and t#at com8anies s#o!ldremember t#at Jmost of older 8eo8le don6t correctly !se a com8!terand are not +ocial %edia oriented as is t#e <eneration S6. %oreover@since not everyone is 8resent on +ocial %edia@ it is 8aramo!nt forcom8anies to contin!e !sing ot#er media c#annels for t#eir8romotion and comm!nication.

.>5>. Social Media usage according to 0ationalitiesot# interviewees t#ink t#at com8anies s#o!ld take t#e c!lt!raldimension into acco!nt.

.>6 ualitati4e analysis (Focus Group %nter4ie1s">

7



.>6>+ Prole of %nter4ie1ees• 4 8artici8ants took 8art in eac# foc!s gro!8

• 17 $emales * males

• ' o!t of ' are em8loyed

• 1, o!t of ' are bot# em8loyed and 8ost grad!ate st!dents

• Age? '';'4.>6>+ <easons 1hy customers using Social Media

All cons!mers interviewed !se social %edia mainly for social

interaction wit# friends and families@ and most of t#em see +ocial

%edia as so!rce of information for 8rod!cts and services and to read

reviews and information from blogs abo!t 8rod!cts brands and to be

!8 to date wit# new 8rod!cts.

.>6>) <easons 1hy customers follo1 brands on Social Media

All cons!mers interviewed said t#at t#ey are following brands to get

!8dates on new 8rod!cts@ read comments and reviews abo!t 8rod!cts

and to com8are 8rices and 8rod!cts and get s8ecial oBers and to be

!8dated wit# feedbacks on new 8rod!cts and to see t#e new collection

for t#e brands@ Cons!mers get more information abo!t com8any and

can also s#are and s8read o8inion.

.>6>, :ind of purchase consumers use Social Media for

All cons!mers interviewed said t#at kind of 8!rc#ase t#ey look for in

+ocial %edia travel@ clot#es@ 9ealt# bea!ty@ lectronics@

entertainment@ cars

.>6>. Pro4iding a good interaction eCperience 1ith customersand brand through social media can inJuence their purchaseintention>

Cons!mers o8inions varied in t#is 8oint some of t#em see t#at goodinteraction abo!t new 8rod!cts wit# brands makes t#em c!rio!s to

know more abo!t t#e 8rod!ct and b!y it and t#ey see t#at com8anies

gives an image t#at it6s b!ilding relations#i8 wit# t#e c!stomers@ it

oBers credibility abo!t t#e brand and inF!ences t#eir 8!rc#ase

intentions #owever ot#er c!stomers said t#at some c!stomers may be

advocators or #aters

77



.>6>5 Bo1 positi4e re4ie1s and comments about products &ser4ices plays a role in #onsumer$s purchase decision and KiceKersa

Cons!mer6s o8inions varied in t#is 8oint some of t#em see it 8lays a

role in t#eir 8!rc#ase decision@ after t#ey read reviews and commentsabo!t 8rod!cts@ and some said t#at I will 8lays a role if t#ey read from

e>8erienced 8eo8le@ and some of t#em said t#at it will aBect t#eir

8!rc#ase decision if one of t#eir friends@ family write comments and

reviews.

.>6>6 =iDerence in maing a purchase decision bet1een usinginformation from the social media and information from themass media>

All cons!mers interviewed said t#at in social media@ t#ere are bot#8ositive and negative comments on t#e 8rod!cts and it allows more

critical t#inking on 8!rc#ase decision. In mass media@ only t#e 8ositive

side is s#own@ T#e information 8rovided via social media is !s!ally

more obective@ #ence making it more credible@ +ocial media #as more

eBect as yo! rely on yo!r friend6s o8inion more t#an !st mass media.

7&



#hapter 5> #onclusions & =iscussion

T#is c#a8ter starts by 8resenting t#e concl!sions and t#e res!lts of t#e

#y8ot#eses. T#en@ t#e t#eoretical and managerial im8lications will be

8resented in relation to t#e )ndings of t#is st!dy. $inally@ t#e

limitations t#at need to be taken into consideration are demonstrated

and we make some s!ggestions for f!rt#er researc#.

7.1 Concl!sions

T#e !ltimate aim of t#is st!dy was to analyEe #ow cons!mers are

aBected by e;W-% t#ro!g# +5+. After develo8ing a literat!re review

abo!t t#e signi)cance and t#e reasons be#ind interacting in e;W-%

t#ro!g# +5+@ t#e eBect of t#is interaction was reviewed@ and

s8eci)cally on cons!mers6 8!rc#ases intentions.

9y8ot#esis 1 stated t#at >8os!re to +ocial %edia +5+ #as a direct

8ositive eBect on cons!mers6 8!rc#ase intentions and #y8ot#esis '

stated t#at :!ality of e;W-% t#ro!g# +5+ #as a direct 8ositive eBect

on cons!mers6 8!rc#ase intentions and #y8ot#esis , stated t#at

:!antity of e;W-% t#ro!g# +5+ #as a direct 8ositive eBect on

cons!mers6 8!rc#ase intentions and #y8ot#esis stated t#at +o!rce

>8ertise #as a direct 8ositive eBect on cons!mers6 8!rc#ase

intentions.

$or t#e res8ondents in my +!rvey@ we con)rm t#at :!ality of e;W-%

t#ro!g# +5+ #as a direct 8ositive eBect on bot# cons!mers6 8!rc#ase

intentions and :!antity of e;W-% t#ro!g# +5+ #as a direct 8ositive

eBect on cons!mers6 8!rc#ase intentions and +o!rce >8ertise #as a

direct 8ositive eBect on cons!mers6 8!rc#ase intentions.

%y , 8rinci8al #y8ot#eses are t#erefore s!88orted. 9owever I fo!nd

t#at >8os!re to +ocial %edia #as a very low eBect on Cons!mer6s

8!rc#ase intention t#erefore 91 not s!88orted.

7=



5>) Theoretical %mplications

In t#e second c#a8ter@ a literat!re review was cond!cted@ in order to

gain knowledge abo!t e;W-%@ +5+@ t#e interaction wit#in t#em and

t#e eBect of e;W-% t#ro!g# +5+ on cons!mers6 be#avior. T#ere@ it was

recogniEed t#at e;W-% t#ro!g# +5+ is a newly develo8ed8#enomenon 9owever@ t#e trend of t#is to8ic #as been recogniEed by

researc#ers@ b!t t#ey #ave mainly foc!sed on t#e reasons be#ind t#e

interaction of !sers in t#ese sites. T#e eBect of e;W-% t#ro!g# +5+ on

cons!mers6 8!rc#ase intentions #as yet to be develo8ed.

y con)rming o!r t#ree 8rinci8al #y8ot#eses and increasing t#e

!nderstanding of t#is 8#enomenon@ it can be ass!med t#at t#is st!dy

#as made a contrib!tion and #as added credit to t#e limited e>isting

t#eories. %oreover@ t#e )ndings of t#is t#esis s!88ort t#e st!dy done

by Wallace@ et al. H'00*@ w#ic# stated t#at e;W-% t#ro!g# +5+ #as aneBect on cons!mers6 8!rc#ase intention. T#e researc# done by

(iUey@et al. H'011@ fo!nd t#at e;W-% t#ro!g# +5+ #as an eBect on

8!rc#ase intention@ w#ic# we also con)rmed. Wallace@ et al. H'00*

arg!ed t#at cons!mers aged 17;' are more likely to get aBected by e;

W-% t#ro!g# +5+. -!r concl!sions are contrary to t#e statement by

Wallace@ et al. H'00*@ since we discovered t#at cons!mers w#o are '7

to , years old are more aBected by e;W-% t#ro!g# +5+ t#an t#e

cons!mers t#at are 17 to ' years old.

0egati4e 1ord ofmouth is more important than positi4e

%ore t#an t#e maority s#are information abo!t 8rod!cts and services@

b!t negative word;of;mo!t# is more t#an 8ositive. Cons!mers s#are

often to very freG!ently information wit# t#eir network w#en t#ey are

!nsatis)ed by a 8rod!ct. +o@ cons!mer s8eaks a lot more abo!t bad

e>8erience t#an good. T#e rise of t#e word;of;mo!t# t#ro!g# social

media #as 8!s#ed com8any to develo8 t#em in order to control t#eir e;

re8!tation@ to be 8roactive and to control c!stomer content. In fact@

feedbacks from c!stomers are really im8ortant for com8anies today. In

answering cons!mers demand@ com8any can 8rogress and im8rove

t#eir b!siness.

• <ole of traditional and social media

$or com8any@ t#e role of traditional media is to reac# new 8eo8le@ and

for cons!mer is a so!rce of information in order to b!y new 8rod!ct.

74



Anot#er 8oint of view is it t#at traditional advertising is also im8ortant

to conserve beca!se Ads inF!ence 8eo8le wit# re8etition and via t#e

m!lti8licity of s!88ort !sed. T#erefore Com8any6s s#o!ldn6t abandon

traditional media@ t#ey #ave to !se bot# traditional media and +ocial

media order to b!y known 8rod!ct as well as 1&.=&R !sed social

media. T#e most of organiEation #as websites and@ now@ $acebook and

Twitter 8ages. Com8anies !se it as a c!stomer;relations#i8;

management in order to interact wit# 8eo8le and #ave feedbacks to

engage t#em@ b!t t#ey also !se it in order to reac# s8eci)c target. !t

t#e c#oice between media de8ends on t#e com8any6s target b!t also

of t#eir b!dget of comm!nication.

5>, <ecommendations

Clearly cons!mers want to be aware abo!t new 8rod!cts@ so com8any

#as to contin!e to advertise t#ro!g# traditional media b!t in a creative

and f!nny way@ in order to t#eir messages be listening.

Com8any #as also to be trans8arent@ sincere and be available for

cons!mer t#ro!g# diBerent s!88ort to reinstate tr!st of cons!mer

Hsocial media@ 8#one@ e;mail@ face to face@ video…. Wit# a total

availability to c!stomers and a good be#avior@ com8anies can en#ance

good c!stomer e>8erience in order to #ave good review on t#eir brand

to inF!ence ot#er 8eo8le. As cons!mers c#eck information t#ro!g#

diBerent c#annel@ com8anies #ave to diB!se t#e same messages wit#

t#e same be#avior t#ro!g# all c#annels t#ey !se. It6s w#y 8aying

8eo8le to add good comment is a really bad idea. +o it6s im8ortant toalways answer to c!stomer feedback and involve t#em in !sing social

media as a c!stomer relations#i8 management. Indeed@ social media is

a tool w#ic# can #el8 com8any to !nderstand and answer more easily

to #is target. Its w#y@ control e;re8!tation by controlling word of mo!t#

on social media in res8onding to every feedback Hbad and good is

really im8ortant.

7*



+o@ in listening cons!mer@ consider t#em@ engage t#em in brands and

gives t#em t#e ability to s#are abo!t t#e brand@ com8any can make

loyal #is c!stomer in order to generate more reven!e .T#is researc# is

also@ and es8ecially to 8revent com8any abo!t t#eir new cons!mer

I also s!ggest t#at t#e eBect of e;W-% t#ro!g# +5+ s#o!ld beinvestigated on ot#er as8ects of cons!mers6 be#avior s!c# as

8!rc#ase decisions@ cons!m8tion be#avior and ot#ers. Also@ t#e eBect

of e;W-% t#ro!g# +5+ can be com8ared to #ow traditional advertising

inF!ences cons!mers6 8rod!ct 8erce8tions and 8!rc#ase intentions.

T#ese s!ggestions are to add val!e to t#e limited researc# t#at e>ists

in t#is area.

5>6 Summary

T#is c#a8ter started by disc!ssing t#e )ndings of t#is researc#.9y8ot#eses '@ ,@ .were all con)rmed. T#e researc# model s#owed t#e

statistical res!lts fo!nd in t#e analysis. T#ereafter@ we im8lied t#at t#is

researc# will contrib!te to t#e limited e>isting t#eory and is a88licable

to com8anies and managers.

&0



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of;'011;digitalQ.

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http://blog.nielsen.com/nielsenwire/online_mobile/nielsens-tops-of-2011-digital/


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AppendiC A

=1



='



=,



AppendiC '/ Focus Group <eport

T#e 3esearc#er #eld , foc!s gro!8s disc!ssions wit# n!mber of

c!stomers on Q4Q'01. T#e foc!s gro!8 cond!cted as 8art of data

collection to know as m!c# as 8ossible abo!t t#e t#o!g#ts and

8erce8tion of t#e c!stomers

=



The =iscussion 1as designed to gather information from thecustomers in regard to the follo1ing outcomes/

+> To understand for 1hat reasons do customers use Socialmedia

)> To understand 1hy they are follo1ing brands on Socialmedia and 1hat ind of purchase they are looinginformation for

,> To understand the role positi4e & negati4e EW!M playsin their purchase intention

.> To understand 1hat impact consumer$s purchaseintentions

Participants =emographics

• H participants too part in each focus group• +5 Females & males• ). out of ). are employed• +, out of ). are both employed and post graduate

students• Age/ )))H

uestion +/ For What <easons do you use Social MediaI

+/ +#aring interests@ credible so!rce of information@ to kee8 in to!c#

wit# 8eo8le

)/ 3ead blogs abo!t 8rod!cts@ credible so!rce of information@ so!rce of

interaction and to kee8 in to!c# wit# 8eo8le

,/ +ocial interaction@ s#aring interests

./ +ocial interaction@ so!rce of information@ read reviews and

information abo!t brands 8rod!cts

5/ +ocial interaction@ )nd information and reviews abo!t new 8rod!cts

=7



6/ +ocial interaction@ so!rce of information@ read reviews and

information from blogs abo!t 8rod!cts brands

7/ +ocial interaction@ so!rce of information@ read reviews from blogs

H/ +ocial Interaction? <et !8dates regarding new brands@ tec#nologies

+*? To advertise for 8rod!cts and engage wit# c!stomers

++? +ocial interaction

+)? +ocial interaction

+,? +ocial interaction@ get !8dates for new 8rod!cts@ online 8rod!cts

+.? +o!rce of information@ read reviews on new 8rod!cts

+5? To be !8 to date wit# new 8rod!cts

+6? +ocial interaction@ get !8dates for new 8rod!cts

+7? ntertainment

+H? -nline 8!rc#ase@ social interaction

+? ntertainment

)*? +o!rce of information@ read reviews on new 8rod!cts

)+? +ocial interaction@ so!rce of information

))? <et !8dates on new 8rod!cts

),? ntertainment

).? +#aring interests@ connecting wit# 8eo8le

uestion )/ For 1hat <easons do you follo1 brands on Social

MediaI+/ To get !8dates on new 8rod!cts@ read comments and reviews abo!t

8rod!cts

)/ To get !8dates abo!t new 8rod!cts and services@ to com8are

8rod!cts 8rices

=&



,/ To get !8dates abo!t s8eci)c 8rod!cts and com8are 8rices

./ To get !8dates and information abo!t new 8rod!cts

5/ To get !8dates and information abo!t new ideas

6/ To get !8dates and information abo!t new 8rod!cts and readreviews from bloggers not from t#e brand itself

7/ To com8are 8rices@ to get !8dates and information abo!t new

8rod!cts

H/ To get !8dates and information abo!t new 8rod!cts@ to com8are

8rices and 8rod!cts

/ To get !8dates on new 8rod!cts and oBers

+*/ To read reviews on 8rod!cts I want to try

++/ To get !8dates on new 8rod!cts and s8ecial oBers

+)/ To be !8dated wit# feedbacks on new 8rod!cts

+,/ To read reviews from c!stomers on new 8rod!cts

+./ eing !8 to date wit# new 8rod!cts

+5/ I don6t follow brands on +ocial %edia

+6/ To com8are 8rod!cts@ 8rices@ G!ality

+7/ To be !8dated wit# s8ecial oBers

+H/ To com8are 8rices

+/ To see t#e new collection for t#e brands

)*/ To 3ead reviews on new 8rod!cts

)+/ To com8are 8rod!cts wit# 8rices G!ality

))/ To get !8dates and information abo!t new 8rod!cts and read

reviews from bloggers

),/ 3ead comments and reviews abo!t 8rod!cts

)./ eing !8 to date wit# new ideas

==



uestion ,/ What ind of purchase do you use Social Media

forI+/ Travel@ clot#es

)/ 9ealt# bea!ty@ travel@ clot#es

,/ Clot#es

./ 9ealt# bea!ty@ clot#es

5/ Clot#es@ travel

6/ lectronics@ entertainment@ cars

7/ Clot#es@ #ealt# bea!ty@ travel

H/ 9ealt# bea!ty@ travel@ clot#es

/ lectronic 8rod!cts

+*/ $as#ion Clot#es@ electronics

++/ 9ealt# ea!ty

+)/ 9ealt# ea!ty

+,/ 5ot#ing

+./ lectronic 8rod!cts

+5/ Travel@ clot#es

+6/ 9ealt# bea!ty@ travel@ clot#es

+7/ Clot#es

+H/ 9ealt# bea!ty@ clot#es

+/ Clot#es@ travel

)*/ lectronics@ entertainment@ cars

)+/ Clot#es@ #ealt# bea!ty@ travel

=4



))/ Clot#es@ travel

),/ lectronics@ entertainment@ cars

)./ Clot#es@ #ealt# bea!ty@ travel

uestion ./ =o you thin that pro4iding a good interactioneCperience 1ith customers and brand through social media caninJuence your purchase decisionI

+/ Ses@ good interaction abo!t new 8rod!cts wit# brands makes me

c!rio!s to know more abo!t t#e 8rod!ct and b!y it

)/ 5o@ +ome c!stomers may be advocators or #aters

,/ Ses@ if t#ere is a #ig#ly interaction on a new 8rod!ct it inF!ence my8!rc#ase decision

./ Ses

5/ Ses@ com8anies gives an image t#at it6s b!ilding relations#i8 wit#

t#e c!stomers

6/ Ses@ it oBers credibility abo!t t#e brand and inF!ences my 8!rc#ase

decision

7/ Ses it will inF!ence my 8!rc#ase intention

H/ 5o@ I don6t interact wit# brands

/ Ses@ as sometimes yo! mig#t need to cons!lt one of t#e c!stomer

services 8eo8le Q social media s8ecialist to ask abo!t a certain feat!re

in a 8rod!ct or get some clari)cations t#at mig#t make it easier for yo!

to decide w#at to get according to yo!r needs.

+*? -f co!rse it inF!ences t#e 8!rc#ase of t#e 8rod!ct and will

increase 8ercentage of 8rod!ct sold.++/ Ses@ like !8dates feedback

+)/ +!re

+,/ (e)nitely@ beca!se it6s easy to access and ask abo!t anyt#ing yo!

want. +ocial media for brands is a do!ble wea8on as it can inF!ence

=*



yo!r 8!rc#ase t#ro!g# good interactions or make yo! #ate t#e brand

from bad interactions and e>8erience from em8loyees.

+.? Ses@ com8anies gives an image t#at it6s b!ilding relations#i8 wit#

t#e c!stomers

+5/ Ses@ it oBers credibility abo!t t#e brand and inF!ences my

8!rc#ase decision

+6/ Ses it will inF!ence my 8!rc#ase intention

+7? +!re it will #ave a direct im8act on my decision

uestion 5/ =o you thin that positi4e re4ie1s and commentsabout products & ser4ices plays a role in your purchasedecision and Kice Kersa

+/ Ses it 8lays a role in my 8!rc#ase decision@ after I read reviews and

comments abo!t 8rod!cts

)/ Ses it 8lays a role b!t it de8ends on t#e nat!re of 8rod!cts@ e>? for

8rod!cts I don6t know it 8lays a role,/ Ses it 8lays a role if I read from e>8erienced 8eo8le

./ Ses it makes me want to try t#e 8rod!ct

5/ Ses@ it will inF!ence me if one of my friends gives me #is review

6/ Ses it 8lays a role if I read from e>8erienced 8eo8le

7/ Ses it 8lays a role if I read from e>8erienced 8eo8le

H/ Ses@ it will aBect my 8!rc#ase decision if one of my friends writescomments and reviews

/ (e)nitely@ as reading 8ositive comments from 8revio!s c!stomersmakes t#e decision easier.

+*/ -f co!rse it aBects as will increase t#e 8!rc#ase 8ercentage.

40



++/ Ses@ c!stomer service is very im8ortant

+)/ +!re

+,/ Ses@ t#ey #el8 in t#e decision making es8ecially for 8rod!cts yo!

can only b!y online and are not available in stores.

+./ yes

+5/ yes

+6/ Ses de)nitely. $eedback is a 8l!s^

+7/ Ses of co!rse

+H/ Ses.

+/ Ses will #el8

)*/ Ses

)+/ Ses.

))/ Ses

),/ +ometimes

)./ +!re as it facilitate taking a rig#t decision as 8eo8le w#o mades!c# comments 8ass t#ro!g# t#e same stage of 8!rc#ase

uestion 6/ %n your opinion8 1hat is the biggest diDerence inmaing a purchase decision bet1een using information fromthe social media and information from the mass mediaI+/ %ore 8rod!ct details availability

)/ T#e reliability of information is greater in social media t#an mass

media

,/ T#e biggest diBerence is t#at in social media yo! can arg!e wit#friends abo!t yo!r f!t!re 8!rc#ase@ s#ortcomings and t#eir 8revio!se>8erience wit# t#e same 8rod!cts

./ T#e information 8rovided via social media is !s!ally more obective@#ence making it more credible

41



5/ In social media@ t#ere are bot# 8ositive and negative comments ont#e 8rod!cts and it allows more critical t#inking on 8!rc#ase decision.In mass media@ only t#e 8ositive side is s#own6/ +ocial media #as real 8eo8le i know !sing t#e 8rod!ct.7/ In social %edia t#ere are diBerent as8ects on 8rod!ct and services

H8ositive vs. 5egative #owever in mass media its only 8ositive mostof t#e time d!e to advertising 8ayment.H/ C!stomer reviews. -8inions fo!nd online m!st be consistent wit# atrend Hie? maority dislikeQlike t#e 8rod!ct Will not f!lly tr!st reviews ift#ere only a few. %ass media 8rovides only a biased view from t#emarketer/ Word of mo!t#.+*/ +ocial media #as more eBect as yo! rely on yo!r friend6s o8inionmore t#an !st mass media++/ T#e amo!nt of information available.+)/ +ocial media gives an o88ort!nity to know a lot of diBerent

o8inions of real Cons!mers+,/ Credibility+./ W#en !sing social media@ yo! can act!ally searc# for t#e as8ectst#at interest yo!@ w#en in mass media yo! cannot really control t#einformation available to yo!+5/ I can get more gen!ine comments on social media.+6/ I t#ink information from social media is more reliable t#aninformation of mass media beca!se information from mass media isalmost every time com8anies own advertisement.+7/ In +ocial media we like to t#ink t#at 8eo8le tell t#e tr!t#...+H/ +ocial media is more tr!sted@ aBects yo!r t#inking. %ass media

aBects yo!r feelings@ wit# less info.

+/ Availability)*/ +ocial media #as real 8eo8le i know !sing t#e 8rod!ct$rom social media I 8ick !8 t#e most negative comments from myfriends to avoid t#eir mistakes and from mass media I #ear abo!tbrand and make my own researc#)+/ I g!ess t#e biggest diBerence is t#at #ow m!c# a 8erson !sessocial media in t#e )rst 8lace. If one is mostly aBected by mass mediaHlike myself one will more likely make 8!rc#asing decisions by !singt#e information given t#ere. Im always looking for credibility and

reliability no matter w#at I b!y@ 8l!s I t#ink t#at brand is a I< deal. Tr!stwort#y brands can always make it@ w#et#er t#ey markett#emselves in social media or in mass media.))/ /er#a8s@ mass media is t#e review of a 8rod!ctQservice from one8erson 8!blis#ed in a magaEine s!88orted by an organiEation orcom8any even enter8rise. !t w#en it is abo!t social media t#einformation co!ld be 8rovide by diBerent entities as bloggers@ normal!sers@ cons!mers@ clients@ same com8any

4'



AppendiC #/ SemiStructured %nter4ie1

1; (oes yo!r com8any !se +ocial %edia to comm!nicate wit#

cons!mersZ

'; $or w#at 8!r8ose do yo! !se +ocial %edia at yo!r com8anyZ

,; (o yo! t#ink t#at 8roviding a good interaction e>8erience Hwit# yo!rbrand to c!stomers t#ro!g# +ocial %edia can inF!ence t#eir 8!rc#asedecisionZ

; (o yo! t#ink t#at a brand s#o!ld engage wit# cons!mers by !sing+ocial %ediaZ

9ow is it done at yo!r com8anyZ

(o yo! t#ink t#at com8anies s#o!ld abandon t#e traditional media toonly foc!s on +ocial %ediaZ

7; (o yo! t#ink t#at com8anies s#o!ld allow cons!mers to s#are t#eiro8inions on t#e com8any6s +ocial %edia 8ageZ

(o yo! t#ink t#at negative reviews from friends and from 8eo8le t#eydon6t know co!ld diss!ade t#em to make t#eir 8!rc#ase decisionZW#at does yo!r com8any do in case of negative commentsZ

4,



&; (o yo! t#ink t#at 8ositive reviews and comments abo!t /rod!cts QservicesQ brands on +ocial %edia co!ld 8!s# t#em to make t#eir8!rc#ase decisionZ

(o yo! t#ink t#at com8anies s#o!ld reward c!stomers t#at 8ost8ositive reviewsZ

(oes yo!r com8any do itZ

A lot of res8ondents in my researc# said t#at t#ey follow brands on+ocial %edia to get !8dates abo!t 8rod!ctsQservices.

(o yo! t#ink t#at com8aniesQbrands s#o!ld !se +ocial %edia to

comm!nicate abo!t t#eir 8rod!ctsQservices !8datesZ and w#yZ


(oes yo!r com8any !se +ocial %edia to la!nc# marketing cam8aignsZIf yes can yo! tell me more abo!t w#at yo!r com8any didZ

=; (o yo! t#ink t#at com8anies s#o!ld !se +ocial %edia to b!ild loyalty

wit# c!stomersZ


4; (o yo! t#ink t#at com8anies s#o!ld take t#e c!lt!ral dimension into

acco!ntZ


AppendiC => 0estlL Egypt SemiStructured %nter4ie1 transcript

4

!mar :amel ocialMedia Managerin)*++ in Mareting &

#ommunicationde artment of



+ =oes 0estle Egypt use Social Media to communicate 1ithconsumersI

Ses we do@ we #ave 1' 8ages on $acebook related to all 5estlD

/rod!cts H5escafe; 5esG!ik;5I(-; 5estlD Ice cream gy8t; KitKat;

(olcie Ice Cream@ C32AC… all t#ese on social media 8latforms@ and

we !se +ocial %edia 8latforms tools like $acebook Twitter

Instagram for diBerent 8!r8ose for o!r branding image and to engage

wit# c!stomers directly online.

For 1hat purpose do you use Social Media at 0estle$ EgyptI

We !se $acebook to inform fans abo!t t#e new 8rod!cts Halmost everymont#@ to interact wit# t#em on o!r c!rrent 8rod!cts@ new 8rod!ctsla!nc# and do teasing cam8aigns to try t#e new 8rod!cts. 9aving t#isinteraction wit# o!r c!stomers #el8 !s to get feedbacks t#at will #el8!s to 8rovide t#e best G!ality to o!r c!stomers and take reviews inacco!nt to eval!ate c!stomers satisfaction.

) =o you thin that pro4iding a good interaction eCperience(1ith your brand" to customers through Social Media can

inJuence their purchase decisionI

Ses we do believe t#at 8roviding a good e>8erience to o!r c!stomer8lays a role in t#eir cons!m8tion@ We realiEed t#at !sing t#is +ocial%edia tool co!ld drive more b!siness @9aving a connection wit# t#e!sers t#ro!g# +ocial %edia #el8 !s to establis# a very long;termrelations#i8 t#at can lead to sell more 8rod!cts.

, =o you thin that a brand should engage 1ith consumers byusing Social MediaI

very brand can take advantage of +ocial %edia@ no matter t#e siEe oft#e com8any. /eo8le are looking for direct relationQinteraction wit#brands. It is a not insigni)cant o88ort!nity for brands to s#ow to t#eirc!stomers t#at t#ey care abo!t t#em@ to make t#em feel t#at t#ey are8rivileged and recogniEed as loyal c!stomers.

Bo1 is it done at 0estle EgyptI

47



To engage o!r fans@ we #ave )rst determined w#o t#ey are and w#att#ey want. W#en someone likes a brand it is to s#ow #isQ#er interest tot#e brand b!t also@ as I said before@ to be treated as a s8ecialLc!stomer. ngagement goes t#ro!g# diBerent ways like?

• ngagement 8osts H5ew la!nc# for 8rod!ct and 8romoting to itand :!estionnaire 8osts HAsking c!stomers w#ic# most t#ey8refer wit# 5escafe@ 5escafe wit# bisc!its or don!ts orc#ocolates and entertainment 8osts H%!sic 8laylist in t#eweekend for o!r fans.

• Incl!de t#em in o!r develo8ment take 8art of o!r develo8mentby games. $or e>am8le@ I #ave develo8ed a s8ecial game onsocial media linked to t#e website? create yo!r own 5escafereci8e and we will sell it for a s#ort 8eriod of time. It engaged t#e

fans and s#owed t#em t#at we care abo!t t#eir taste and desire.=o you thin that companies should abandon the traditionalmedia to only focus on Social MediaI

5o@ it wo!ld be a #!ge mistake for com8anies to abandon t#etraditional media in favor of +ocial %edia. %arketers need to remembert#at most of Jolder6 8eo8le don6t !se a com8!ter correctly and or not+ocial %ediaL oriented as is t#e generation S. %oreover some mediacannot be re8laced s!c# as banner@ board and so on. e 8resent andfoc!sed on all diBerent ty8e of media is t#e best way to know w#at8eo8le t#ink@ I believe t#at a com8any s#o!ld kee8 t#e two. -ne can

#el8 t#e ot#er. A com8any can invest more on one or t#e ot#erde8ending on its target and@ of co!rse@ its 8rod!ctsQservices. If t#emaority of t#eir c!stomers are on t#e social media@ t#en it makessense to invest more on t#is media.

. =o you thin that companies should allo1 consumers toshare their opinions on the company$s Social Media pageI

Ses. Allowing o!r cons!mers to s#are t#eir o8inions on o!r +ocial%edia6s 8age #el8 !s to increase o!r 8rod!ct G!ality@ comm!nicationand bo!nds between !sers and com8any

=o you thin that negati4e re4ie1s from friends and frompeople they don$t no1 could dissuade them to mae theirpurchase decisionI What does 0estle$ Egypt do in case ofnegati4e commentsI

We )rst try to !nderstand w#y t#is 8erson #ad a bad e>8erience in o!rstore by answering to #isQ#er comments. If a com8any does not want

4&



its bad comments to s8read all over t#e social media and gain moreintensity@ t#en@ t#ey #ave to react G!ickly and never let a badcomment wit#o!t answer more t#an 1'#o!rs on line. In most cases@ wedirect t#e 8erson to t#e c!stomer service to be com8ensated if #is bade>8erience is in relation wit# an em8loyee@ wit# t#e cleanness of t#e

stores or a 8rod!ct. In any case@ we answer t#at we #ave taken intoacco!nt #isQ#er comments and t#at we will try to im8roveQresolve… t#es!bect w#ic# matters.

5 =o you thin that positi4e re4ie1s and comments aboutProducts - ser4ices- brands on Social Media could push them tomae their purchase decisionI

=o you thin that companies should re1ard customers thatpost positi4e re4ie1sI5ot really reward eac# good comment b!t say t#anks at least. T#e

good comments are generally made by t#e inF!encersL of t#ecomm!nity t#en@ it de8ends on t#e loyaltyQreward 8rogram of t#ecom8any@ and we can send a targeted reward to t#em for s8ecialQnew8rod!ct la!nc# or any s8ecial events.

=oes 0estle$ Egypt do itI

Ses we did it@ we made a com8etition for fans to make a video on #owKitKat c#ange t#eir mood and best video maker was rewarded by 10bo>es of KitKat.

6 A lot of respondents in my research said that they follo1brands on Social Media to get updates aboutproducts-ser4ices>

=o you thin that companies-brands should use Social Media tocommunicate about their products-ser4ices updatesI And 1hyI$ansQfollowers e>8ect@ as yo! said@ to be !8dated on new 8rod!ctst#en@ obvio!sly@ yes com8anies #ave to s8eak abo!t t#eir 8rod!cts!8dates Hif it is a real !8date and it brings an advantage forc!stomers.

=oes 0estle$ Egypt do itI

Ses@ we comm!nicate on o!r new 8rod!cts and !8graded standards

4=



=oes 0estle$ Egypt use Social Media to launch maretingcampaignsI %f yes can you tell me more about 1hat yourcompany didI

5ot a w#ole marketing cam8aign We are creating small b!EE on t#e

new 8rod!cts few days before t#eir la!nc# Hwit# g!est games fore>am8le and we comm!nicate on t#em d!ring t#e cam8aign reg!larlyb!t !sing diBerent ty8e of 8osts@ very cam8aign #as a kind oft#emeL@ we ada8t t#e message and comm!nicate it

7 =o you thin that companies should use Social Media tobuild loyalty 1ith customersI

Ses@ com8anies s#o!ld seiEe t#e o88ort!nity of interactions oBer by+ocial %edia to b!ild loyalty wit# t#eir c!stomers.

=oes 0estle$ Egypt do itI5ot yet@ b!t its6 in t#e f!t!re 8lans

H =o you thin that companies should tae the culturaldimension into accountI=oes 0estle$ Egypt do itI Ses and no. Ses beca!se +ocial %edia are J+ocial6 like t#eir names say.+o it means t#at we need to ada8t to societal and c!lt!ral dimensions.9owever@ we #ave to maintain 5estle6 standards worldwide

AppendiC =/ Citroen Egypt SemiStructured %nter4ie1transcript>

+=oes #itroen Egypt use Social Media to communicate1ith consumersI

44

Besham E22ElArab 溺areting



Ses we do@ we !ses +ocial %edia 8latforms and tools for diBerent

8!r8oses. We !se $acebook and Twitter for o!r branding image and to

engage wit# cons!mers directly online. T#e 9!man 3eso!rces

de8artment of t#e gro!8 !se 2inkedIn.

We allocated o!r b!dget to comm!nicate t#ro!g# social network interm of C!stomer 3elations#i8 %anagement and to 8!r8ose games to

cons!mer to engage t#em. To s!88ort t#ese games@ we also 8osted

Fyers and 8osters in car dealers#i8 and distrib!ted Fyers in cities to

invite 8eo8le to 8lay games in order to win a tri8 at /aris for e>am8le.

For 1hat purpose do you use Social Media at #itroen EgyptI

We !se $acebook to inform fans abo!t t#e new car models@ to interact

wit# t#em on o!r c!rrent 8rod!cts@ new 8rod!cts@ inform t#em abo!t

availability of s8are 8arts t#ey are reG!esting

) =o you thin that pro4iding a good interaction eCperience(1ith your brand" to customers through Social Media caninJuence their purchase decisionI

If c!stomers #ave a good e>8erienceL online@ t#ey feel !nderstoodand listened by t#e brand t#en t#ey will be more likely to go into o!rstores. 9owever@ it does not mean t#at t#ey will go es8ecially intostores only beca!se we #ad good interaction. We need to 8!s# s8ecial

content s!c# as new innovative andQor !n!s!al 8rod!ct to get t#em tomove t#ere@9aving a connection wit# t#e !sers t#ro!g# +ocial %edia #el8 !s toestablis# a very long;term relations#i8 t#at can lead to sell more8rod!cts.

, =o you thin that a brand should engage 1ith consumers byusing Social MediaI

As o!r b!dget was low@ it was a c#ea8er and an easier way to to!c#

o!r c!stomers and a good sol!tion against t#e economic crisis.

%oreover as we wanted comm!nicate on t#e new C, car@ o!r targetwas yo!ng 8eo8le and t#e most of t#em was on social network. We

!sed social network as a C!stomer 3elations#i8 %anagement beca!se

most of t#em are on t#is c#annel w#en t#ey want b!y car or already

#ave bo!g#t one. Indeed@ generally@ 8eo8le go on social network w#en

t#ey know t#e brand and in t#is case want to kee8 informed@ to

become c!stomer or fan of o!r brand. T#ro!g# internet@ t#ere were

4*



more 8eo8le and it was easier to assess t#e feedback wit# t#e n!mber

of visit on o!r website

=o you thin that companies should abandon the traditionalmedia to only focus on Social MediaI

5o@ beca!se it6s not t#e same target as social network and we candiB!se diBerent messages.I t#ink t#at traditional media reac#es and to!c#es a lot of cons!mer inan e>tended way. In fact it de8ends on w#ic# comm!nication c#annelyo! !se@ beca!se following w#at yo! c#oose@ it to!c#es and inF!ences

diBerent ty8e of 8eo8le. =o you thin that companies should allo1 consumers toshare their opinions on the company$s Social Media pageI

J-f co!rse it is t#e matter of social media? interaction betweenc!stomers and a brand b!t it also gives t#em a 8latform w#ere t#eycan talk and s#are information wit# t#e ot#er members of t#ecomm!nity.

=o you thin that negati4e re4ie1s from friends and from

people they don$t no1 could dissuade them to mae theirpurchase decisionI What does #itroen 0estle Egypt do in caseof negati4e commentsI

T#e word of mo!t# e>ists for a lot of year and es8ecially in t#e carind!stry beca!se it6s a t#o!g#tf!l act of;b!ying. +o word of mo!t# isessential in o!r com8any. We are aware abo!t it raised by social mediaand instead of to !ndergo@ it6s im8ortant to control o!r e;re8!tation@ tobe 8roactive and to control c!stomer content. +ocial network is notreally a way to advertise b!t more a way to recover information fromt#e cons!mer. It allows t#e com8any to #ave a feedback from

c!stomer. $or e>am8le one of o!r car dealing created #is own oBerwit#o!t forecast CitroYn it was -ne CitroYn b!y@ one #o!se#olda88liance oBerL. T#is oBer was not in line to CitroYn strategy and onecons!mer tweet was? CitroYn #ave s!nk very lowL

5 =o you thin that positi4e re4ie1s and comments aboutProducts - ser4ices- brands on Social Media could push them tomae their purchase decisionI

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=o you thin that companies should re1ard customers thatpost positi4e re4ie1sI

5o@ t#is wo!ld be a big mistake. T#e w#ole system is working beca!se

of tr!st. <ive rewards to increase 8ositive reviews and yo! will destroyt#e tr!st. Also 8aying for #aving good reviews is t#e best way to #ide8rod!ct weaknesses. If 8eo8le #ave incentive to write good t#ingsabo!t yo!@ yo! will never know w#at is going wrong and yo! won6t beable to correct it.

=oes #itroen Egypt do itI

J5o we don6t do it at Citroen beca!se we don6t want to break t#e tr!st.%oreover we #ave con)dence in o!r 8rod!ct so we certainly don6t ask8eo8le to write good reviews abo!t !s.6

6 A lot of respondents in my research said that they follo1brands on Social Media to get updates aboutproducts-ser4ices>

=o you thin that companies-brands should use Social Media tocommunicate about their products-ser4ices updatesI And 1hyIJSes beca!se t#is w#at cons!mers e>8ect from com8anies6

=oes #itroen Egypt use Social Media to launch maretingcampaignsI %f yes can you tell me more about 1hat yourcompany didI

JWe #ave la!nc#ed several +ocial %edia cam8aign from EE lArab<ro!8 to Citroen. T#ese cam8aigns concerned disco!nt for t#e )rst 100comments to s8ecial +ocial %edia card.

7 =o you thin that companies should use Social Media tobuild loyalty 1ith customersI

Ses@ com8anies s#o!ld seiEe t#e o88ort!nity of interactions oBer by+ocial %edia to b!ild loyalty wit# t#eir c!stomers

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Impact of E-WOM through social media on consumer's purchase intention

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