The Effectiveness of Facebook as Perceived by its Fans An ...

77
The Effectiveness of Facebook as a Marketing Tool for Zalora Philippines as Perceived by its Fans An Undergraduate Thesis Presented to the Faculty of the Department of Arts and Communication College of Arts and Sciences University of the Philippines Manila In Partial Fulfillment of the Requirements for the Degree of Bachelor of Arts in Organizational Communication ROSE ANNE J. GOPEZ 2010 20584 April 2014

Transcript of The Effectiveness of Facebook as Perceived by its Fans An ...

Page 1: The Effectiveness of Facebook as Perceived by its Fans An ...

The Effectiveness of Facebook

as a Marketing Tool for Zalora Philippines

as Perceived by its Fans

An Undergraduate Thesis Presented to the Faculty

of the Department of Arts and Communication

College of Arts and Sciences

University of the Philippines Manila

In Partial Fulfillment

of the Requirements for the Degree of

Bachelor of Arts in Organizational Communication

ROSE ANNE J. GOPEZ

2010 – 20584

April 2014

Page 2: The Effectiveness of Facebook as Perceived by its Fans An ...

ii

APPROVAL SHEET

This thesis entitled “The Effectiveness of Facebook as a Marketing Tool for Zalora

Philippines as Perceived by its Fans,” proposed by Rose Anne J. Gopez in partial

fulfillment of the requirements for the degree of Bachelor of Arts in Organizational

Communication, is approved.

_________________________________

Prof. Myra L. Rondaris

Thesis Adviser

_________________________________ ______________________________

Dr. Donna Aelred C. Bautista Dr. Alex C. Gonzaga

Chair Dean

Department of Arts and Communication College of Arts and Sciences

Page 3: The Effectiveness of Facebook as Perceived by its Fans An ...

iii

ABSTRACT

Social media is indubitably a global phenomenon. The corporate world has seen

the value of the Internet in the communications field, leading them to maximize its

strength to reach out to its market. Considering that the Philippines is dubbed as "The

Social Networking Capital of the World," Filipino marketers have eventually utilized

social media to market their products. Social networking sites (SNS) have attracted

millions of users, many of whom have integrated these sites into their daily lives. One of

the many social networking sites that have initiated immense changes is Facebook

(http://www.facebook.com). Facebook serves as a potential marketing tool for many

companies. Thus, Philippine companies today utilize Facebook for their respective

marketing efforts.

The organization in focus is Zalora Philippines. Zalora Philippines is an online

fashion department store, offering a wide range of products including clothes, shoes,

accessories, and cosmetics, among others. Its main marketing tool is its Facebook brand

page with the URL of http://www.facebook.com/ZaloraPH. As of writing, it has gathered

over 910,000 fans.

This study aims to answer the main problem: Is the Facebook page of Zalora

Philippines perceived to be effective as a marketing tool by the individuals who "like" the

brand‟s Facebook page? This study seeks to answer the following sub-problems:

(1) What is the profile of the Facebook users who "like" the Zalora Philippines page in

terms of gender, age, highest educational attainment, and average family monthly

income?; (2) What is the extent of acceptance of Facebook in terms of the following: as a

promotional tool, as a provider of relevant consumer information, as a forum for closing

sales and business deals, and as a medium of advertisement? and; (3) How does the

Zalora Philippines Facebook page meet the criteria for a successful Facebook page

marketing?

In answering the questions posed, the researcher employed a quantitative

research. Online questionnaires are distributed through a Facebook message to the

individuals who have “liked” Zalora Philippines‟ Facebook page. One hundred thirteen

fans of the brand‟s Facebook page were asked to answer the questionnaire since they

have already been exposed to the marketing efforts of Zalora Philippines. The data

gathered were computed using frequency, percentage distribution, and weighted mean.

The study revealed that the profile of a Zalora Philippines Facebook fan is a

female, aged 20 – 25 years old, college degree holder and has an average family monthly

income of more than Php 100, 001. The over-all extent of acceptance of Facebook by the

fans is acceptable. Moreover, the fans agree that Zalora Philippines has met the criteria

for a successful Facebook page marketing. From these findings, it is therefore concluded

that the Facebook page of Zalora Philippines is perceived to be effective as a marketing

tool by the individuals who “like” the brand‟s Facebook page.

Page 4: The Effectiveness of Facebook as Perceived by its Fans An ...

iv

ACKNOWLEDGEMENTS

The thing is I have drafted my acknowledgements for this thesis many months

ago. I already had the list of people I want to thank right from the start. Like most theses

in the library, the list was very generic. This was the exact list I had as a draft: "To God,

to my thesis adviser, to my college friends, to my high school friends and lastly, to my

family – to Ate Ruth, Ate Che, Chin, Mommy and Daddy.” Ironically, I placed my

Daddy last in my list. This must have meant something. I successfully defended my thesis

on March 14, 2014. My Daddy passed away the following day, March 15, 2014.

It was an ordinary day for our family. During lunch, we ate together and he asked

me what I fed my panelists. Before I left for school, he asked me what time will I arrive

home. I received a phone call at around 5 PM. My sister said they were rushing my

Daddy to the hospital. I finally arrived at the hospital around 7 PM and there he was – my

Dad lying on a cold bed, lifeless. I broke down.

I remember my Daddy in everything that I do and everything that I see. This

computer I‟m using right now was his gift to me before I entered high school. This

computer has never failed me during my thesis writing and I’m grateful. I remember my

Daddy when I pass by my previous school. I thank my high school friends for always

pushing me to finish my thesis every single time we meet. My Daddy has always been the

one who cooked our meals at home and every time I eat outside now, I wish he was the

one who cooked it for me. For this, I want to thank my college friends who I ate together

with in the past four years. Krizzia, Kleir, Margot and Nadine, thank you for always

letting me share my crazy stories with you over good food. I remember my Daddy in

every adult who helped me become a better person. I want to express my sincerest

gratitude to my panelists, Sir Jop Baylon and Dr. Dianne Agbayani, for their insights. To

my thesis adviser, Ma’am Myra Rondaris, thank you for your support, kindness and

guidance. I remember my Daddy in every corner of the house. I know my sisters, my

niece and my mommy feel the same. Ate Che and Ate Ruth, thank you for always

providing for me. Chin, my best frenemy, thank you for allowing me to be happy and

angry at the same time. Mommy, you have been a rock right from the start. Most of your

previous students say you are their favorite teacher because the grades you gave them

were exceptionally high. You said, “Basta nakita ko yung bata nagbubuhos ng effort,

mataas na grade niya.” That is probably why you never demanded anything from me.

You see the efforts I pour in everything that I do and to tell you the truth, it is all for you

and Daddy. You are the definitely the greatest teacher in my life. Daddy, wherever you

are, I hope you are happy with the person I have become. I will miss everything about

you.

Daddy, you left us so early, but I know you had a reason. God has a plan for you

and for us. Thank you for cooking for me, for taking care of me, for teaching me to

become grounded, and for loving me wholeheartedly. Goodbye, I love you.

Page 5: The Effectiveness of Facebook as Perceived by its Fans An ...

v

TABLE OF CONTENTS

TITLE PAGE ……………………………………………………………………… i

APPROVAL PAGE ………………………………………………………………. ii

ABSTRACT ………………………………………………………………………. iii

ACKNOWLEDGEMENTS ………………………………………………………. iv

TABLE OF CONTENTS ………………………………………………………….. v

LIST OF TABLES AND FIGURES ……………………………………………… vii

Chapter 1: Introduction

Background of the Study 3

Statement of the Problem 7

Objectives 8

Significance of the Study 8

Scope and Limitations 9

Definition of Terms 12

Chapter 2: Review of Related Literature

Marketing 14

Facebook 20

Theoretical Framework 24

Conceptual Framework 26

Chapter 3: Methodology

Research Design 29

Sampling Procedure 30

Instrumentation 31

Data Gathering Procedure 33

Statistical Treatment of Data 34

Chapter 4: Results and Discussion

Company Profile 36

Results

A. Respondents‟ Profile 38

B. Extent of Acceptance of Facebook 39

C. Criteria of a Successful Facebook Brand Page 44

Discussion 47

Chapter 5: Summary of Findings, Conclusions,

Implications and Recommendations

Findings 52

Conclusions 54

Implications 56

Recommendations 57

Page 6: The Effectiveness of Facebook as Perceived by its Fans An ...

vi

REFERENCES ………………………………………………………………. 60

APPENDICES

A. Zalora Philippines Facebook Page Content ………………………….. 65

B. Research Instrument ………………………………………………….. 66

C. Pilot Test Results ……………………………………………………... 69

D. Letter to Zalora Philippines …………………………………………... 70

Page 7: The Effectiveness of Facebook as Perceived by its Fans An ...

vii

LIST OF TABLES AND FIGURES

List of Tables Page

Table 1: Interpretation Guide …………………………………………………….….. 34

Table 2: Demographic Profile of the Respondents ……………………………….….. 38

Table 3: Extent of Acceptance of Facebook as an Effective Promotional Tool …….. 40

Table 4: Extent of Acceptance of Facebook as a Provider of Relevant Information .. 41

Table 5: Extent of Acceptance of Facebook as a Forum for Closing Sales

and Business Deals …………………………………………………...……… 42

Table 6: Extent of Acceptance of Facebook as Medium of Advertisement …………. 43

Table 7: Criteria for a Successful Facebook Page Marketing ………………………... 45

List of Figures

Figure 1: Ball-Rokeach & DeFleur's Media Dependency Theory Model …………… 25

Figure 2: Conceptual Model of the Study based on Ball-Rokeach

& DeFleur‟s Media Dependency Theory ……………………….…………... 27

Page 8: The Effectiveness of Facebook as Perceived by its Fans An ...

Chapter 1

INTRODUCTION

Every generation challenges pre-existing ideas to produce innovative, fresh, and

original concepts. If these ideas prove to be worthy, then they create impactful

breakthroughs to the society.

Today, our generation continues to defy norms. We have advanced from

traditional methods to modern ones. The corporate world has seen the value of the

Internet in the communications field, leading them to maximize its strength to reach out

to its market. Without completely letting go of the traditional forms of marketing,

companies started utilizing social media to produce powerful and effective marketing

campaigns. If implemented properly, today‟s social media platforms serve as a potential

tool for the company. With social media continuing its rise, it has become one of the most

predominant promotional methods across the globe.

According to Philip Kotler and Kevin Lane Keller (2006), marketing "deals with

identifying and meeting human and social needs." In other words, it is "meeting needs

profitably." Marketing plays a major role in the society today as it becomes the link

between the producer and the consumer. It improves the living standard of society

because of the goods produced by the competition (Joshi, 2012). Today, the competition

in the marketing field has reached its pinnacle. Marketers are now looking for novel and

inventive ways to market their respective brands. Some of the marketing strategies that

have proliferated since include guerilla marketing, augmented reality, and tribe

marketing. In more recent years, they have started tapping social media.

Page 9: The Effectiveness of Facebook as Perceived by its Fans An ...

2

Social media is indubitably a global phenomenon. As social media continues to

thrive, new social media sites continue to emerge (Nielsen Holdings, 2012). Social media

introduces significant and effective changes to individuals, organizations and

communities (Kietzmann, Hermkens, McCarthy, & Silvestre, 2011). It is based on three

key elements: content, communities and Web 2.0; wherein it is the interaction among

individuals within communities creating, sharing and exchanging information through the

web (Ahlqvistt, Back, Halonen, & Heinonen, 2008). Furthermore, Kaplan and Haenlein

(2010) refer to social media as “Internet-based applications that build on the ideological

and technological foundations of Web 2.0, and that allow the creation and exchange of

User Generated Content” (p. 62).

Social media plays a big role in various organizations. Social media are of

importance to organizational communication processes because it allows new types of

behavior that were difficult to achieve with past technologies (Treem & Leonardi, 2012).

Moreover, it has become a cost-efficient marketing strategy as it allows users to become

a producer of content and deliver such content through interactive communication. Social

media is used because it has many advantages for time, relations, audience, and cost

issues. Marketers have then realized the capacity of social media as a powerful tool. This

encourages them to use it more intensively (Kirtis & Karahan, 2011). Truly, social media

is a significant phenomenon because of the numerous advantages that it offers.

Since its introduction, social networking sites (SNS) have attracted millions of

users, many of whom have integrated these sites into their daily lives (Boyd & Ellison,

n.d.). One of the many social networking sites that have initiated immense changes is

Facebook (http://www.facebook.com). With more than 1.19 billion active users,

Page 10: The Effectiveness of Facebook as Perceived by its Fans An ...

3

Facebook has become a virtual world unto itself (Facebook, 2013). It is no longer viewed

as a simple social networking site. Facebook has provided a wide range of tools for

different concerns of different industries. It can be fully utilized for advertising

campaigns. Furthermore, it can also be used as a useful marketing tool. It is an evolving

marketing tool which marketers can capitalize on.

As social media continue to flourish, we are expected to keep up. The researcher

aims to give insights on the perceived effectiveness of Facebook as a marketing tool for a

Philippine company, specifically, Zalora Philippines. At the end of the study, the findings

would contribute to the studies of social media marketing in the Philippine setting.

Background of the Study

Social media plays a significant role in various Philippine organizations today.

However, there are only few researches regarding social media marketing, its specific

implications to the organization, and social media use in Philippine organizations in

general. This study aims to contribute to the limited studies on the effects of social media

marketing, particularly, Facebook marketing to Philippine organizations.

The marketing arena in the Philippines has thrived since. Marketing has become a

necessity for organizations. It is something they need to invest in so as to succeed.

Filipinos are now exposed to a variety of marketing strategies they have not witnessed

before. Due to this, they have also become more wary of the market today. They have

become more critical and more careful on where their money would go. Filipino

marketers are then challenged to create effective campaigns for the brands they work in.

The competition in the marketing arena of the Philippines has been exciting given that

Page 11: The Effectiveness of Facebook as Perceived by its Fans An ...

4

they all want to be above the rest. This paved the way for new marketing strategies to

emerge.

Considering that the Philippines is dubbed as "The Social Networking Capital of

the World," Filipinos have eventually utilized social media for this very purpose – to

market their products. It is an efficient technique seeing that Filipinos are very active in

social media.

In the late 2000s, “Friendster” has been the talk of the town because of how it has

influenced Filipinos during that decade. “Multiply” soon followed afterwards with almost

one million photographs uploaded online by Filipinos every day. The Filipinos are also

considered as top photo uploaders and web video viewers, while they are second when it

comes to the number of blog readers and video uploaders to South Korea and Brazil,

respectively (Universal McCann, 2008). Since then, Filipinos have seen various

gimmicks and strategies through the different social networking sites. One social

networking site emerged from them all. It has created and is continuously making waves

in the country. With approximately 30, 214, 140 active users in the country alone,

Facebook is considered as an influential tool.

According to Socialbakers (2013), a social media analytics platform, there are

approximately 48% male users and 52% female users in the more than 30 million Filipino

Facebook users. The largest age group is currently from 18 – 24 years old, followed by

the 25 – 34 years old users. Internet usage has come a long way in the country. At

present, Facebook is being used in numerous ways by different businesses.

Page 12: The Effectiveness of Facebook as Perceived by its Fans An ...

5

One of the industries that rely on Facebook marketing is the e-commerce industry.

E-commerce is defined as the use of the Internet and the Web to conduct business

transactions (Nikov, 2010). It involves digitally enabled commercial transactions between

and among companies and individuals. E-commerce is said to reduce search costs for

consumers, simplify price discovery of various products and lower market entry costs for

merchants. Together, social media and e-commerce have complimented one another.

Because of their connection via the Internet, e-commerce businesses have tapped social

media.

In the Philippines, the Internet has paved the way towards a successful e-

commerce industry. The leading companies in the industries of airlines, banking, and

fast-moving consumer goods (FMCG) have been persistent with their use of the Internet.

They are encompassed by a law created by the Philippine government. Entitled "The

Electronic Commerce Act of 2000," the act “aims to facilitate domestic and international

dealings, transactions, arrangements, agreements, contracts and exchanges and storage of

information through the utilization of electronic, optical and similar medium, mode,

instrumentality and technology to recognize the authenticity and reliability of electronic

documents related to such activities and to promote the universal use of electronic

transaction in the government and general public." Through e-commerce, transacting is

easier and more accessible. It is also cost-efficient but still effective in relating

information. To make the most of this, an online shopping site in the country has

implemented a robust marketing campaign through social media. Zalora Philippines, an

online shopping website that provides a wide array of products, is now the 42nd

local

Page 13: The Effectiveness of Facebook as Perceived by its Fans An ...

6

Facebook page with the most number of Filipino "fans". It has gathered over 910, 000

"fans" as of writing (Socialbakers, 2013).

Zalora Philippines (http://www.zalora.com.ph) is a "one stop online destination

for everything fashion in the Philippines." Owned by Rocket Internet, an international

online business incubator established in 1999, it also has its counterparts in neighboring

Asian countries like Indonesia, Thailand, Vietnam, and Malaysia. It offers a variety of

products such as clothes, shoes, accessories, and cosmetics, among others. It was

launched in early 2012 and since then, Zalora has become the first large-scale full-service

e-commerce fashion site in the Philippines.

The respondents of the study are the fans who have "liked" the brand's Facebook

page. These individuals are exposed to the marketing strategies implemented by the

brand from the moment they clicked the “like” button of the Facebook page. Through an

online questionnaire, they were able to describe if the Zalora Philippines Facebook brand

page is effective as a marketing tool.

The Zalora Philippines Facebook page is handled by the company‟s online

marketing managers and social networking representatives. Their job roles include

posting regular content, answering comments and monitoring the activity of the page.

Most of the content posted on the Facebook page of the company features photos of the

products they are selling. A link to the company‟s website is provided along with the

photo in order for the fans to purchase the chosen product should they choose to. Zalora

Philippines posts content at least once a day and answers most questions on the

comments section of the post. Focusing on Zalora Philippines and its fans on Facebook

Page 14: The Effectiveness of Facebook as Perceived by its Fans An ...

7

only aims to give insights on the effectiveness of Facebook as a marketing tool for a

Philippine organization.

There is a great need to study the effectiveness of Facebook as a marketing tool

for an organization because of its potential; thus, this study aims to fill the gap on the lack

of studies on social media marketing in the Philippines. Most studies describe the

capabilities and potentials of social media in leveraging business activities, but never its

implications to the marketing field.

Statement of the Problem

This study poses the major research problem: Is the Facebook page of Zalora

Philippines perceived to be effective as a marketing tool by the individuals who "like" the

brand‟s Facebook page?

The sub-problems of the study are as follows:

1.) What is the profile of the Facebook users who "like" the Zalora Philippines page

in terms of gender, age, highest educational attainment, and average family

monthly income?

2.) What is the extent of acceptance of Facebook in terms of the following: as a

promotional tool, as a provider of relevant consumer information, as a forum for

closing sales and business deals, and as a medium of advertisement?

3.) How does the Zalora Philippines Facebook page meet the criteria for a successful

Facebook page marketing?

Page 15: The Effectiveness of Facebook as Perceived by its Fans An ...

8

Objectives

This study intends to determine the perceived effectiveness of Facebook as a

marketing tool for Zalora Philippines as perceived by its fans.

Specifically, this study aims to:

1.) describe the people who “like” the Zalora Philippines page in terms of gender,

age, highest educational attainment, and average family monthly income;

2.) find out the extent of acceptance of Facebook of those users who “like” the Zalora

Philippines page in terms of the following: as a promotional tool, as a provider of

relevant consumer information, as a forum for closing sales and business deals,

and as a medium of advertisement; and

3.) determine if the Zalora Philippines Facebook page has a successful page

marketing based on the given criteria

Significance of the Study

The study focuses on a phenomenon considered to shift paradigms in businesses

today. Social media has opened numerous possibilities for companies to grow and expand

themselves. As opposed to traditional media, social media involves a shift in the way

people discover, read and share news. It has connected so many people, enabling

businesses to offer their products, market new products and get feedback on their current

products promptly. Most companies today approve of social media as a valuable tool to

support their respective marketing communications.

Page 16: The Effectiveness of Facebook as Perceived by its Fans An ...

9

Companies can utilize the gathered data in this study to decide on whether they

should pursue social media marketing or not. They can maximize this information to their

advantage. At the same time, Facebook users will be able to understand the implications

of their Facebook usage on their buying behavior. They would be able to comprehend

how different social media marketing strategies are being carried out.

Furthermore, studies on the effectiveness of social media as a marketing tool are

limited. This is particularly perplexing since social media has continuously

revolutionized the marketing landscape today. Therefore, this study aims to contribute to

the limited studies on the effectiveness of Facebook as a marketing tool for a Philippine

organization.

To the field of Organizational Communication, the study would contribute to the

studies on marketing and social media. This study aims to provide new insights on the

field of social media marketing which has not been considered for the past theses. This

study aims to become a pioneer in such field since social media has, truly, a great

potential.

Scope and Limitations

This study aims to find out the effectiveness of Facebook as a marketing tool for

Zalora Philippines. Specifically, it aims to determine if the Facebook page of Zalora

Philippines is perceived to be effective as a marketing tool by the people who "like" the

brand‟s Facebook page.

There are seven ways to capitalize on Facebook for marketing (Marrs, 2013).

First, companies can create their own Facebook page. It is an online space to develop the

Page 17: The Effectiveness of Facebook as Perceived by its Fans An ...

10

brand identity of the company. Second, they could start contests to increase fans and

brand awareness. They use a third-party app for these promotions as there is no available

feature that Facebook offers. Third, they can promote their posts by paying a fixed rate.

This increases a specific post's reach. Fourth, there is the concept of "Sponsored Stories."

This option shows the interactions of a user's "friend" in his or her own news feeds. It

also capitalizes on the notion of "word of mouth." Fifth, Facebook also offers "Open

Graphs" which lets companies label a user's action with their app. Instead of the usual

"like" or "share," companies can include a new action with specific types of posts. For

example, if a user posts a song, "Open Graph" can include a "listen" or "favorite" option.

Sixth, this option lets companies take advantage of Facebook's feature of targeting a

specific audience. Facebook Exchange (FBX) targets audience based on their web history

data. Lastly, there is the concept of Facebook Ads. These are called "Marketplace Ads"

which include a copy, an image, and a link to a Facebook page, a Facebook app, or an

outside website. Companies have to pay a fixed rate for their ads to be placed on a user‟s

news feeds.

This study would only focus on the Facebook page created by Zalora Philippines.

This refers to the verified page in Facebook with the website URL:

http://www.facebook.com/ZaloraPH. Zalora Philippines' six other marketing efforts were

not considered in the study. The company‟s official website and banner ads displayed on

other websites were also not considered.

The online questionnaire accepted responses only until February 6, 2014. Content

posted after this date have not influenced the gathered responses of the study. The bases

of the responses of the study were the posts of Zalora Philippines from the moment the

Page 18: The Effectiveness of Facebook as Perceived by its Fans An ...

11

fans have “liked” the page until they have answered the questionnaire. There is no

specific period or timeframe this study is limited to. When the respondents were asked to

evaluate the Facebook page of Zalora Philippines, they could refer to the previous and

current posts of the brand. These posts of the company have more or less shown up on

their respective news feeds, which in turn, have influenced their opinions on the

company‟s marketing efforts. The questionnaire remained open for responses from

January 21 to February 6, 2014.

Furthermore, only those users who have previously "liked" the Zalora Philippines

Facebook page were studied. This is because they are subjected to the different content

posted by the company. The results gathered from the study were taken in general.

Page 19: The Effectiveness of Facebook as Perceived by its Fans An ...

12

Definition of Terms

The following terms were defined operationally for the purpose of the study:

Admin – people who create and manage activity in Facebook groups and Pages

Content – anything posted on the Facebook wall of an individual or brand page

e-commerce – commercial transactions conducted electronically on the Internet

Facebook – a social network service and website where users may create a personal

profile, add other users as friends and exchange messages, including automatic

notifications when they update their profile

Facebook apps – interactive software applications developed to utilize the core

technologies of the Facebook social networking platform

Facebook message – integrates e-mail, instant messaging, text messaging, and chat in

one conversation thread for one person (friend)

Facebook page – allows businesses, brands and celebrities to connect with people on

Facebook. Admins can post information and News Feed updates to people who

“like” their pages.

“fans” – Facebook users who have liked a certain Facebook page

Internet – a network that links computer networks all over the world by satellite and

telephone, connecting users with service networks such as e-mail and the World

Wide Web

Page 20: The Effectiveness of Facebook as Perceived by its Fans An ...

13

“like” – clicking the "Like" button in Facebook is a way to give positive feedback and a

way to receive updates on content an individual is interested with; moreover,

people who have “liked” a page become its fans

Marketing – the creation and the delivery of standards of living; it is finding out what

customers want, then planning and developing a product or service that will

satisfy those wants; and then determining the best way to price, promote and

distribute that product or service

News Feeds – an ongoing list of updates on a Facebook user's homepage that shows what

is new with their friends and pages they follow

Social Media – describes technology that facilitates interactive information, user-created

content and collaboration

Social Media Marketing – usually centers on marketing efforts to create content that

attracts attention and encourages readers to share it with their social networks

Social Networking Sites – web-based services that allow individuals to construct a

public or semi-public profile within a bounded system, articulate a list of other

users with whom they share a connection, and view and traverse their list of

connections and those made by others within the system

URL (Uniform Resource Locator) – refers to the address of a web page on the Internet

Website – refers to a collection of web pages

Page 21: The Effectiveness of Facebook as Perceived by its Fans An ...

14

Chapter 2

REVIEW OF RELATED LITERATURE

As this study aims to identify the effectiveness of Facebook as a marketing tool

for Zalora Philippines as perceived by its fans, an overview of the variables and relevant

studies will provide a strong foundation for understanding the problem. This chapter will

provide a synopsis of related literature on the use of Facebook as a marketing tool.

Significant studies related to the research will be discussed. At the end of the chapter, the

theoretical and conceptual frameworks of the study are presented.

Marketing

Marketing is everywhere. It has been of interest to everyone. Philip Kotler, one of

the world‟s leading authorities in marketing, and Kevin Lane Keller (2006) define it as

identifying and meeting human and social needs. According to them, it is “meeting needs

profitably.” Together with Armstrong, Saunders, and Wong (2008), Kotler also defines

marketing as “a social and managerial process by which individuals and groups obtain

what they need and want through creating and exchanging products and value with each

other.” In addition, the American Marketing Association (2008) offers the following

definition: “Marketing is the activity, set of institutions, and processes for creating,

communicating, delivering, and exchanging offerings that have value for customers,

clients, partners, and society at large.” On the other hand, the Chartered Institute of

Marketing (2008) gives this definition: it is “the management process which identifies,

anticipates, and supplies customer requirements efficiently and profitably.” Through the

years, marketing has transitioned from a goods-dominant perspective to a service-

Page 22: The Effectiveness of Facebook as Perceived by its Fans An ...

15

dominant perspective, in which intangibility, exchange processes, and relationships are

central (Vargo & Lush, 2004). Various definitions of marketing have been provided by

experts and professionals. From these definitions, we can generalize that marketing is a

management process addressing the consumers‟ needs through the exchange of goods

and services to gain profits.

Without a doubt, marketing is highly significant. Nearly every aspect of a

consumer‟s life is affected by marketing. It gives them a choice among products since

marketing is created to address their needs. It increases their living standard due to the

production of goods intended for them. It also increases the nation's income as it affects

the economic growth and development of the nation. Another significance of marketing

is the job opportunities that it offers. For continuous production, marketing is needed;

therefore, a company would hire professionals to fulfill this duty. At the same time, it

plays a major role in most companies today. Marketing connects the consumers and the

companies. It serves as a bridge between the two. The following marketing functions also

aid in the growth of the company: marketing planning, price management, product

management, marketing research, and communications management (Perreault, Cannon

& McCarthy, 2012; Joshi, 2012; Urbonavičius, Dikčius, & Kasnauskienė, 2007).

Certain concepts of marketing make it more profound. One of these is the 4Ps of

marketing - comprised of product, price, place, and promotion – which is common in

most marketing books. These are the four critical elements in marketing a product or

service of a company. (1) Product refers to the goods and services being offered to the

consumers; (2) Price refers to how much a company would charge for the product or

service; (3) Place involves the distribution channels used to bring the products to the

Page 23: The Effectiveness of Facebook as Perceived by its Fans An ...

16

consumers, and (4) promotions is the advertising and selling part of marketing. It is the

process of informing the consumers of the company's products. Together, the 4Ps create

the marketing mix of a product or service. A single element influences the other elements

since they are intertwined. If devised effectively, these four elements would lead to the

company's success (Ehmke, Fulton & Lusk, n.d.).

Due to its undeniable importance and effectiveness, marketing has proliferated

since. It has taken on various forms to achieve its goal of addressing the needs of the

consumers. Kirby and Marsden (2006 p. xvii) list different kinds of marketing: (1) Mass

media advertising is the promotion of a company by means of paid persuasive messages

through a media with a large audience; (2) Viral marketing is the promotion of a

company that is designed to spread, normally online, from person to person, and (3)

Word of mouth marketing, or buzz marketing, is the promotion of a company through

initiatives designed to get people and media talking positively about the company.

Industry leaders say that traditional marketing campaigns based on mass media

advertising are not working anymore due to technological advances. Among the many

types of marketing that have been utilized in the past few years, one stood out above the

rest because of its low cost and high efficiency – it is social media marketing. It continues

to flourish today. It is still in its infancy, yet it shows a lot of potential. Moreover, it is

likely that it will become the most important online marketing tool, even outperforming

traditional online marketing sites and portals (Laudon & Traver, 2008, p. 440).

Social media is here to stay. According to Chip Salyard (as cited in The Business

Times, 2012), “the proliferation of social media channels coupled with next-generation

applications and mobility has significantly changed the communication and business

Page 24: The Effectiveness of Facebook as Perceived by its Fans An ...

17

landscape.” Social media tools can empower both the employees and their organization to

communicate openly. He continues by saying, “When social media is effectively

implemented, we see that the benefits far outweigh the risks, allowing us to reach out to

more people.” Social media is defined as “Internet-based applications that build on the

ideological and technological foundations of Web 2.0, and that allow the creation and

exchange of User Generated Content (Kaplan & Haenlein, 2010, p. 62).” It is networking

and connecting by engaging in conversations through technology (Packer, 2011).

Accordingly, social media is becoming more important as a marketing tool given the

wide adoption by most consumers. It enables companies to talk directly to their

consumers, and consumers to talk directly with one another – a feat that no type of

marketing has yet achieved (Mangold & Faulds, 2009).

Weinberg (2009) defines „social media marketing‟ as the process that empowers

individuals to promote their products, or services through online social channels (social

networking sites), and tap into a much larger community that may not have been

available via traditional channels. Companies can promote their products and services,

provide instant support, or create an online community through all forms of social media.

Social media marketing is an innovative marketing concept. It is more sincere in its

communication with the consumers as it tries to show what the brand is rather than trying

to control its image (Erdogmus & Çiçek, 2012). It is about understanding how technology

connects people with their social networks and how companies can profit from that

understanding. In its simplest form, social media marketing is utilizing readily available

social media tools for the marketing efforts of the company. Companies today would like

Page 25: The Effectiveness of Facebook as Perceived by its Fans An ...

18

to learn how social media marketing can generate value for their businesses (Bashar,

Ahmad, & Wasiq, 2012).

Several studies (Wikström & Wigmo, 2010; Laroche, Habibi, & Richard, 2012;

Erdogmus & Çiçek, 2012; Laroche, Habibi, Richard, & Sankaranarayanan, 2012;

Michaelidou, Siamagka, & Christodoulides, 2011) show that social media is valuable to

most companies. It helps companies promote themselves and improve their consumer

relationship. It improves their brand awareness and reputation to their consumers. It can

also harness and control the nature of word of mouth between current customers and

potential customers. Consumers today prefer "recommendations" through these new

means rather than being the receiver of traditional marketing. Social media-based brand

communities of companies offer brand owners the ability to improve the value, brand

trust, brand loyalty and feelings of community among members. Brand communities,

defined as a “specialized, non-geographically bound community, based on a structured

set of social relations among admirers of a brand” (Muniz & O‟Guinn, 2001, p. 412)

established on social media, have positive effects on customer/product, customer/brand,

customer/company, and consumer/other customers relationships (elements of the

customer centric model of brand community), which in turn have positive effects on

brand trust, and trust has positive effects on brand loyalty. Furthermore, brand loyalty of

the consumers is affected when the brand offers advantageous campaigns, offers relevant

content, offers popular content, appears on various platforms, and offers social media

applications in their respective sites. Social media is used to complement the traditional

ways of marketing. It is used as a two-way communication. Companies will be closer to

their customers enabling them to create a unique brand identity and to differentiate

Page 26: The Effectiveness of Facebook as Perceived by its Fans An ...

19

themselves from their competition. Customers can also benefit from the company since

through their use of social media, they will be able to communicate with the company

and provide constructive feedback.

Social media has grown tremendously in recent years. It is emerging into the

marketing plan of businesses worldwide. Originally, social media was used solely for

“friendships” with others; now, it is being utilized as a form of advertising (Bayne, 2011).

Social media has become an important feature in today‟s marketing mix. Adapting some

form of marketing online through social media is a key node for all businesses, especially

in an industry where trends constantly change such as fashion and handicrafts (Bashar,

Ahmad, & Wasiq, 2012).

Companies need not worry because social media offers a variety of tools for them

to utilize. The key social media categories are blogs, social bookmarking, and social

networking sites (SNS). Blogs are defined as a website that contains an online personal

journal with reflections, comments, and often links provided by the author. Social

bookmarking is the practice of saving bookmarks to a public website such as YouTube

and Wikis. On the other hand, social networking sites are websites where people could

connect with friends. Some of the well-known SNS are MySpace, Twitter, LinkedIn,

Flickr, and Facebook (Anjum, More, & Ghouri, 2012). Among these online tools,

Facebook has been established as the top social networking site worldwide (Alexa, 2013).

It is for this reason that companies are starting to utilize Facebook to reach out to their

consumers. Companies have recognized the need to focus on what customers are looking

for on a site, what the company wants to communicate, and what the role of Facebook is

in communicating their message to the consumers (Kunz & Hackworth, 2011).

Page 27: The Effectiveness of Facebook as Perceived by its Fans An ...

20

Facebook

Facebook (http://www.facebook.com) has grown phenomenally. From a simple

Harvard social web application, Facebook has transformed into a social network which

allows its users to interact in new and exciting ways.

In 2003, a young programmer named Mark Zuckerberg matriculated in Harvard

University. One of his controversial projects called Facemash.com, where users would

choose between two pictures of Harvard female students based on physical attractiveness,

brought him before the university's administrative board on charges of breaching

computer security and violating Internet privacy and intellectual property policies.

Zuckerberg took a leave of absence from Harvard after the controversy, but Harvard

twins Cameron and Tyler Winklevoss brought Zuckerberg in to help finish a social

networking project they were working on. Instead of complying with their requests,

Zuckerberg created a separate website that served as a social application for Harvard

students. He concentrated his efforts on developing what was first known as

thefacebook.com. Initially, Facebook's aim was to connect Harvard students, but it

rapidly spread to include high school students, professionals, and then, everyone. To

maintain its growing momentum, Facebook opened its doors to non-academic users for

the first time in 2007. At present, Facebook has grown to be the largest social network

with more than 1.19 billion users worldwide. (Graham, 2008; Gershon, 2013).

More than a billion users share their interests and personal information on

Facebook today. These individuals connect to others, creating online communities of

Page 28: The Effectiveness of Facebook as Perceived by its Fans An ...

21

friends who share public information or send private messages. At present, it can be said

that Facebook is the world‟s largest social networking site.

Social networks have transformed the way people interact online and share

information. They have changed the ways consumers correspond with brands causing

companies to struggle in keeping up (Gregori & Baltar, 2011; Hoffman & Fodor, 2010).

Companies today actively utilize social networks to improve public relations, gain market

research data, reach customers, offer technical support, find new employees and more

(Shih, 2009). Stelzner (2012) also points out that through social media marketing,

companies can gain loyal fans, acquire marketplace insight, reduce marketing expenses,

improve search rankings on common search engines, generate leads, grow business

partnerships, increase exposure and improve general sales. These advantages are now

attracting more and more companies to deem Facebook as a powerful tool.

Brian Offenberger (2013) offers these reasons as to why companies should utilize

Facebook as a marketing tool: (1) Facebook has transformed into a search engine.

Facebook has started a new featured call "Graph Search" where the search rankings are

based on a person's connection with others. This results to optimized search results

distinct to the user. (2) A person's Facebook page influences the search engine rankings

on other search engines such as Google and Bing. Through engagement with its

followers, a company would be valued and ranked higher than others. (3) Facebook can

serve as a traffic generating machine for business. It has the potential to drive people to a

company's website and retail store. Offenberger states that some businesses have reported

a 300% increase in website referral traffic due to Facebook. (4) The customers are on

Facebook. It is for this reason that companies should be there, too. (5) Moreover,

Page 29: The Effectiveness of Facebook as Perceived by its Fans An ...

22

customers of a brand expect companies to market on Facebook. Customers follow

businesses on Facebook because they want something. They expect deals and

information, viewing Facebook as a site where they can get valuable customer service

assistance and information. (6) Lastly, companies could learn about their customers and

competitors through Facebook. They can gain helpful information through posts and

audience comments. He concludes by saying that Facebook requires time, planning and

patience. If utilized properly, it can be a strong marketing channel for any company.

In a competitive marketing battlefield, a company must learn how to create

effective and engaging campaigns that would lead to their success. Businesses can offer

current and potential customers something special - exclusive content, contests, or

discounts - which would aid in increasing their sales, leads, brand awareness, and social

word of mouth (Constant Contact, 2012). Facebook (2011) also advises companies to

build campaigns that are social by design, meaning it is integrated with the broader

marketing efforts of the company. It should also be interactive since Facebook has

already provided avenues to make it more engaging with the consumers. Most

importantly, companies should nurture the relationships they have established in the

medium. They should stay in touch and reward loyal consumers.

Since its launch, Facebook has attracted millions of followers. It claims to offer

new solutions to old problems. The way how brands and consumers communicate is

changing (Poynter, 2008). The increase of communication flow between the two entities

is creating a new level of complexity in the design and implementation of new marketing

strategies (Ramsaran-Fowdar & Fowdar, 2013). With Facebook, companies could create

Page 30: The Effectiveness of Facebook as Perceived by its Fans An ...

23

fresh and valuable marketing strategies that would attract and engage potential and

current consumers.

In the Philippines, the first Filipino logged on to the Internet through the first

public permanent connection achieved by the Philippine Network Foundation (PHNET)

in March 29, 1994. PHNET, a consortium of private and government institutions,

managed the country‟s only gateway to the Internet (Minges, Magpantay, Firth, & Kelly,

2002). According to the International Telecommunication Union (as cited in Labucay,

2011, p.2), there are about 8.3 million Filipino Internet users in 2009 from a mere 4,000

when it was first established in 1994. Social media has become a basic staple for

everyone with the Philippines having over 408 Internet service providers and an

estimated 2 million Internet subscribers in 2006 (National Telecommunications

Commission, 2006).

Social media has become a platform in the social web for individuals to find,

acquire and share information. Social networking sites, an example of which is Facebook,

have become avenues for data and communication (Angeles, 2010). Internet in the

country has definitely reached great lengths.

Page 31: The Effectiveness of Facebook as Perceived by its Fans An ...

24

Theoretical Framework

This study applies Sandra Ball-Rokeach and Melvin De Fleur's (1976) Media

Dependency Theory to the findings. It is a theory that aims to explain how individuals

make use of media in their lives. It states that the more dependent an individual is on the

media for having his or her needs fulfilled, the more important the media will be to that

person. In 1998, Ball-Rokeach explained the possible impact of the Internet in media

dependency. She wrote: “The Internet thus intrudes on traditional relations by being

integrated into an expanded media system that may expand the reach of understanding,

orientation, and play goals that individuals, groups, and organizations may attain through

media dependency relations.” Since then, the Internet has indeed become more integrated

into the lives of Internet users.

In the Media Dependency framework, Ball-Rokeach and De Fleur propose an

integral relationship among audiences, media, and a larger society. This tripartite

audience-media-society relationship is assumed to determine the effects that a specific

media has on people and society. It is grounded on the uses-and-gratifications theory

which explains that people consume media for various reasons, and the effect of

consuming such media would not be the same for everyone (Griffin, 2011). The Media

Dependency theory highlights the individual-media relationship in terms of the intensity

of the dependency relationship and the extent to which consumers relate to a medium like

Facebook to meet their specific goals such as consumer-related activities (Casquite,

2012).

Page 32: The Effectiveness of Facebook as Perceived by its Fans An ...

25

Figure 1. Ball-Rokeach & DeFleur's (1976) Media Dependency Theory Model

As shown in Figure 1, the model shows that social institutions and media systems

interact with audiences so as to create needs, interests, and motives. These, in turn,

influence the audience to select various media that can lead to their dependency on the

media. Individuals who become dependent on a specific media will be affected

cognitively, affectively, and behaviorally. As a result, media users are affected in

different ways and to different degrees by that specific media.

Scholars (Ball-Rokeach & DeFleur, 1976; Rubin & Windahl, 1986) propose that

dependency on a media develops from three relationships: 1) The relationship between

the society and media which explains that media access and availability are regarded as

important qualifications to an individual's perception with media. 2) The relationship

between the media and audience which is regarded as the key variable in the theory since

it explains how people would use a mass medium. 3) The relationship between the

society and audience wherein societies affect the audience's needs and motives for media

use. In general, Rubin and Windahl (1986) says that: "the more readily available, the

Page 33: The Effectiveness of Facebook as Perceived by its Fans An ...

26

greater the perceived instrumentality, and the more socially and culturally acceptable the

use of a medium is, the more probable that media use will be regarded as the most

appropriate functional alternative."

Conceptual Framework

The conceptual framework explains how the media dependency theory is applied

to the study. The concepts of the research study are embedded into the previous model. In

this way, the conceptual framework would relate the study‟s variables in order for the

researcher to answer the problems of the study.

Pattered after the paradigm of Noel Casquite‟s (2012) study, the variables of the

Media Dependency theory are replaced with the researcher‟s variables. The variables of

the study are as follows: the intensity of consumer-Internet mediated relationship (in

terms of extent of acceptance of Facebook), the uses and gratifications on media

(Facebook), and the Facebook users who have "liked" Zalora Philippines' Facebook page.

The first variable, the intensity of consumer-Internet mediated relationship,

explains the extent of acceptance of Facebook of the Facebook fan. This would include

qualitative descriptions. The second variable, the uses and gratifications on media,

includes the four purposes of utilizing Facebook of Zalora Philippines. The third variable,

Facebook users who have “liked” Zalora Philippines‟ Facebook page, replaced the

audience variable of the previous model. This would include the respondents of the study.

Page 34: The Effectiveness of Facebook as Perceived by its Fans An ...

27

Figure 2. Conceptual Model of the Study based on

Ball-Rokeach & DeFleur’s (1976) Media Dependency Theory

The audience of the study will be vital in understanding the other concepts of the

model. Since they have already "liked" the brand's Facebook page, they will be able to

answer the extent of their acceptance of Facebook for Zalora Philippines. The

relationship between the intensity of consumer-Internet mediated relationship and uses

and gratifications on media would vary for each use and gratification. The brand's

Facebook fans that have grown dependent on Facebook will be affected cognitively,

affectively, and behaviorally.

The theoretical and conceptual framework of the study has been presented. Both

frameworks give emphasis on the relationship between the society and media. This

relationship would help the researcher identify the effectiveness of Facebook as a

Page 35: The Effectiveness of Facebook as Perceived by its Fans An ...

28

marketing tool for Zalora Philippines as perceived by its fans. These frameworks, in turn,

serve as the representation of the study.

The diverse literature and studies presented in this chapter strengthened the

importance of identifying the effectiveness of Facebook as a marketing tool in a

Philippine organization. Understanding Facebook as a marketing tool could help

companies in their respective marketing efforts. With an appropriate methodology

complimenting the gathered data, the objective of identifying the effectiveness of

Facebook as a marketing tool for Zalora Philippines was achieved.

Page 36: The Effectiveness of Facebook as Perceived by its Fans An ...

29

Chapter 3

METHODOLOGY

The main intent of the study is to determine if the Facebook page of Zalora

Philippines is perceived to be effective as a marketing tool by the individuals who "like"

the brand‟s Facebook page. This chapter deals with the methods and procedures followed

in the pursuit of research data. An overview of the design, sampling techniques,

instrumentation of the study, data gathering procedures, and statistical treatment of the

data will be provided.

Research Design

This research is quantitative in nature and approach. This method is used to

describe, analyze and record the effectiveness of Facebook as a marketing tool for Zalora

Philippines. Moreover, the quantitative method is employed to statistically resolve the

problems posed by the researcher.

Respondents of the study are individuals who have previously “liked” the Zalora

Philippines Facebook page. Individuals who were just about to “like” or have already

“unliked” the brand‟s Facebook page were not considered as valid respondents. These

individuals have seen the different content posted by the company on their respective

news feeds. They were subjected to the marketing strategies of the brand making them a

reliable source of information. Respondents were asked to state their demographic profile

in terms of gender, age, highest educational attainment, and average family monthly

income, identify their extent of acceptance of Facebook in terms of the following: as a

promotional tool, as a provider of relevant consumer information, as a forum for closing

Page 37: The Effectiveness of Facebook as Perceived by its Fans An ...

30

sales and business deals, and as a medium of advertisement, and answer if the Zalora

Philippines Facebook page has met the criteria for successful Facebook page marketing.

There is no specific timeframe the study was limited to. Respondents could refer to the

previous posts of the page for their responses. An online questionnaire was implemented

for the study as this method will be more efficient.

Results of the study were tallied and interpreted descriptively. Appropriate

statistical treatment was applied to the data gathered from the online questionnaires. After

such process, the researcher concludes the study and provides recommendations to future

researchers.

Sampling Procedure

The respondents of the research study are individuals who have already “liked”

the Zalora Philippines Facebook page. The researcher gathered the necessary information

for the study from those who are already familiar with the brand. With this, the research

was able to obtain valid and credible data.

Using Slovin‟s formula (1960) with a 10% margin of error, the study will include

100 respondents out of the 910, 000 Facebook fans of Zalora Philippines. The

respondents were already aware of the brand since they have previously “liked” the

brand‟s Facebook page.

The study employed a non-random sampling technique, specifically, the

purposive sampling. Individuals who have liked, shared or commented on the content

posted in the Facebook page were contacted via Facebook message. The link to the

online questionnaire was sent out to these individuals via the message. Respondents of

Page 38: The Effectiveness of Facebook as Perceived by its Fans An ...

31

the research were presented with an online questionnaire which would include the details

of the research study.

Instrumentation

An online questionnaire was utilized in this study to gain the appropriate

information to understand the effectiveness of Facebook as a marketing tool for Zalora

Philippines. A questionnaire adapted from Noel Casquite‟s (2012) study of the same

subject matter was utilized. The questionnaire was forwarded to the respondents through

a Facebook message. The instrument addressed the three sub-problems stated by the

researcher. After answering the three sub-problems, the researcher was able to answer the

study‟s major research problem. The results gathered from the questionnaires were

recorded, computed and verified by the researcher.

The questionnaire is divided into three parts in order to address the three sub-

problems of the study. The first part addressed the question: “What is the profile of

Facebook users who "like" the Zalora Philippines page in terms of gender, age, highest

educational attainment, and average family monthly income?” It included questions

determining their respective demographic profiles. This helped the researcher identify the

profile of a Zalora Philippines Facebook fan. The questions on their gender, age, highest

educational attainment, and average family monthly income had pre-set choices. The

second part answered the question: “What is the extent of acceptance of Facebook in

terms of the following: as a promotional tool, as a provider of relevant consumer

information, as a forum for closing sales and business deals, and as a medium of

advertisement?” It includes questions and statements pertaining to how the Zalora

Page 39: The Effectiveness of Facebook as Perceived by its Fans An ...

32

Philippines Facebook page is accepted by its Facebook fans. These questions are based

on the study of Noel Casquite (2012) with the title, “Facebook as an Effective Marketing

Tool.” There are four main questions which have three sub-questions each. The four main

questions pertain to the four purposes of Zalora Philippines in utilizing Facebook as

stated in the conceptual framework, specifically, on the „uses and gratifications on media‟

variable. The sub-questions served as variables for the main question they are under. The

questions followed the Likert Scale answerable through the following responses: totally

unacceptable, unacceptable, acceptable, and perfectly acceptable. Lastly, the third part

answered the question: “How does the Zalora Philippines Facebook page meet the criteria

for a successful Facebook page marketing?” This part includes the eight criteria derived

from Jeremiah Owyang‟s (2010) article, “The 8 Successful Criteria for Facebook Page

Marketing.” The title of each criterion was provided along with a description of how the

criterion is applied in Facebook. The questions also followed the Likert Scale answerable

through the following responses: strongly disagree, disagree, agree, and strongly agree.

At the start of the questionnaire, a short introduction of the study was included. It

contained the details of the researcher and the research topic. An assurance of

confidentiality was also provided. After the respondents finish the questionnaire, the

contact details of the researcher were also provided, should the respondents have

questions or comments.

Before distributing the questionnaire to the fans of Zalora Philippines, a pre-test

was conducted in order to verify if the questionnaire is reliable. The company in focus for

the pre-test is Lazada Philippines, a sister company of Zalora Philippines, which has a

similar business setting to Zalora but sells different products. Thirty respondents

Page 40: The Effectiveness of Facebook as Perceived by its Fans An ...

33

answered the online questionnaire. The responses of the pre-test were tabulated and

subjected to Cronbach‟s Alpha, a common measure of internal consistency. The results

garnered alphas of more than 0.7 which made the adapted questionnaire valid.

Data Gathering Procedure

The researcher distributed the online questionnaires to individuals who have

already “liked” the Zalora Philippines Facebook page. When a Facebook user “likes” the

Zalora Philippines page, he or she would receive updates, usually composed of a photo of

their product, regularly. The individual has more or less read these updates more than

once. This means that the individual has already been subjected to the marketing strategy

of Zalora Philippines. The online questionnaire was distributed to the “fans” that have

liked, shared or commented on the content posted in the Facebook page. The lists of these

“fans” are shown in each post of the page. A sample of more than 100 respondents was

achieved making the research study conclusive.

The researcher has decided to employ an online questionnaire as it would be the

most practical data gathering technique. Since the topic of the research study deals with

an Internet-based subject, the population for the study would have access to it. Utilizing

an online questionnaire would also be timesaving and laborsaving.

The first part of the questionnaire was analyzed by frequency and percentage

distribution. Meanwhile, the second and third parts of the questionnaire were analyzed

through frequency, percentage distribution, and weighted mean. This treatment is

appropriate for the research study since data are classified according to numerical

categories. The tables are presented in this study.

Page 41: The Effectiveness of Facebook as Perceived by its Fans An ...

34

Statistical Treatment of Data

Throughout the study, the following statistical techniques were utilized:

frequency, percentage distribution, and weighted mean. The following interpretation

guide adapted from Casquite's (2012) study aided in the analysis of the data gathered.

This helped the researcher describe the extent of acceptance of Facebook and determine

if Zalora Philippines met the criteria for successful Facebook page marketing after

employing a four-point Likert scale:

Table 1. Interpretation Guide

Statistical Limits Numerical Descriptor

(from Questionnaire)

Qualitative Interpretation

3.81 to 4.00 4 Perfectly Acceptable/ Strongly Agree

2.51 to 3.80 3 Acceptable/ Agree

1.21 to 2.50 2 Unacceptable/ Disagree

1.00 to 1.20 1 Totally Unacceptable/ Strongly Disagree

The results of the first part of the questionnaire were computed by getting the

frequency and percentage distribution. This yielded results that identified the answer to

the first problem.

The second part of the questionnaire was computed by getting the frequency,

percentage distribution, and weighted mean. First, the frequency, percentage distribution,

and weighted mean were computed for each sub-question. After computing for each sub-

question, the over-all weighted mean of the three variables were then computed. The

Page 42: The Effectiveness of Facebook as Perceived by its Fans An ...

35

result for each question was then compared to the interpretation guide which answered

the respondents‟ extent of acceptance of Facebook in terms of the stated items.

The third part of the questionnaire was also computed by getting the frequency,

percentage distribution, and weighted mean. The frequency, percentage distribution, and

weighted mean of each criterion were solved. Afterwards, the over-all mean of the eight

criteria was computed. The result garnered was also compared to the interpretation guide

which determined if the Zalora Philippines Facebook page met the criteria for a

successful page marketing.

Page 43: The Effectiveness of Facebook as Perceived by its Fans An ...

36

Chapter 4

RESULTS AND DISCUSSION

This chapter provides the profile of the focus company, as well as the results and

discussion of the gathered data. The information gathered aims to provide answers to the

main problem and sub-problems of the study.

Company Profile

Zalora Philippines

ZALORA PHILIPPINES is an online fashion and lifestyle department store. It

offers local and international fashion brands. Offering an ever-expanding line-up of

choices of shoes, clothes, and accessories, it is Asia's fastest-growing online fashion and

beauty products retailer. It has then dubbed itself as a "one stop online destination for

everything fashion."

After launching in early 2012, it now considered as the first large-scale full-

service e-commerce fashion site in the Philippines. It has its counterparts in other Asian

countries such as Thailand, Vietnam, Hong Kong, Taiwan, Singapore, Indonesia and

Malaysia. After merely a year of operations, Zalora has achieved double-digit million

dollar revenues and employed more than a thousand individuals. Rocket Internet, a

German online startup incubator, found the company, alongside Lazada Philippines and

OfficeFab. Rocket Internet‟s goal is to identify successful Internet ventures and duplicate

them in emerging markets, or in this case, the Philippines.

Page 44: The Effectiveness of Facebook as Perceived by its Fans An ...

37

The company also prides itself on its customer service and free express shipping

for the customer's purchases. They follow the latest fashion trends in order to provide its

customers with fresh and trendy fashion products. They provide fashion tips and advice

through their social media outlets to keep the customers engaged with the brand. Zalora

Philippines stays true to its mission of offering an effortless online shopping experience.

Since the company belongs to the e-commerce industry, Zalora Philippines has

utilized various online marketing strategies. Miss Jessica de Mesa, a marketing officer of

the company, has admitted that most of their budget is allocated to their marketing

efforts. They pay for outside banners and search engine optimization (SEO) ads, among

others. However, most of their efforts are directed towards their social media accounts.

Zalora Philippines has accounts on Facebook, Twitter, Instagram, YouTube, Tumblr,

Pinterest, Polyvore, FourSquare, and Google+. Among these social networking sites, they

focus most of their efforts on their Facebook page.

Miss Jessica de Mesa has explained that there are two types of posts on their

Facebook page. There are posts that aim to engage fans by posting a question or a

quotable statement, and then, there are posts that feature their products along with a link

to their official website. Through these different posts, the Facebook page of Zalora

Philippines is continuously active. They make it a point to post regularly and answer the

comments posted on the page. Upon reaching a million likes, the company plans to hold

promos and sales for the fans as a celebration for this specific feat.

Page 45: The Effectiveness of Facebook as Perceived by its Fans An ...

38

Results

One hundred thirteen Zalora Philippines Facebook fans answered the online

questionnaire. The following tables illustrate the results gathered from the data gathering.

These tables present the answers of the respondents, showing both the frequency and

percentage. If needed, the mean and qualitative interpretations are also provided.

A. Respondents’ Profile

The following tables present the frequency and percentage of the respondents‟

gender, age, highest educational attainment, and average family monthly income. Based

on the results, most of the fans of the brand are female, aged 20 – 25 years old, college

degree holders, and has an average family monthly income of more than Php 100, 001.

Table 2. Demographic Profile of the Respondents

Demographic Variables Frequency (N = 113) Percentage (%)

Gender

Male

Female

27

86

24 %

76 %

Age

19 years old and below

20 to 25 years old

26 to 28 years old

29 years old and older

29

66

3

15

26 %

58 %

3 %

13 %

Highest Educational Attainment

High School Graduate

College Degree

Master‟s Degree

35

70

3

31 %

62 %

3 %

Page 46: The Effectiveness of Facebook as Perceived by its Fans An ...

39

Other 5 4 %

Average Family Monthly Income

Below Php 10, 000

Php 10, 001 to Php 20, 000

Php 20, 001 to Php 50, 000

Php 50, 001 to Php 100, 000

Over Php 100, 001

9

7

24

36

37

8 %

6 %

21 %

32 %

33 %

As reflected in Table 1, 76% or majority of the respondents are female. The

respondents are predominantly young, with 84% of them younger than 26 years old. Most

of the respondents are students, specifically, college students. 86% of the respondents

have an average family monthly income of more than Php 20, 001. 33% of the

respondents have an average family monthly income of greater than Php 100, 001,

closely followed by 32% of the fans with an average family monthly income of Php 50,

001 to Php 100, 000.

B. Extent of Acceptance of Facebook

The following tables show the extent of acceptance of Facebook in terms of the

following: as an effective promotional tool, as a provider of relevant consumer

information, as a forum for closing sales and business deals, and as a medium of

advertisement among the respondents of the study. Data are presented through a

frequency and percentage distribution, weighted mean, and a qualitative interpretation. At

the end of each table, the over-all mean for the three sub-questions are presented.

Page 47: The Effectiveness of Facebook as Perceived by its Fans An ...

40

Table 3. Extent of Acceptance of Facebook as an Effective Promotional Tool

Extent of acceptance of Facebook as an

effective promotional tool in terms of:

Frequency

(N=113)

Percentage

(%)

Mean and

Qualitative

Interpretation

Reliability in promoting products and

services

Totally Unacceptable

Unacceptable

Acceptable

Perfectly Acceptable

0

4

59

50

0 %

4 %

52 %

44 %

3.41

Acceptable

Makes consumers aware of products and

services

Totally Unacceptable

Unacceptable

Acceptable

Perfectly Acceptable

1

4

39

69

1 %

4 %

35 %

61 %

3.56

Acceptable

Provides bigger opportunities for the

business

Totally Unacceptable

Unacceptable

Acceptable

Perfectly Acceptable

1

3

42

67

1 %

3 %

37 %

59%

3.55

Acceptable

Over-all 3.51

Acceptable

With an over-all mean of 3.51, it can be said that the fans of Zalora Philippines

accept Facebook as an effective promotional tool. Data from the table reveals that the

consumer acceptance is acceptable in terms of reliability in promoting products and

Page 48: The Effectiveness of Facebook as Perceived by its Fans An ...

41

services, consumer awareness, and provision of bigger opportunities for Zalora

Philippines.

Table 4. Extent of Acceptance of Facebook as a Provider of Relevant Information

Extent of acceptance of Facebook as a

provider of relevant information in

terms of:

Frequency

(N=113)

Percentage

(%)

Mean and

Qualitative

Interpretation

Reliability, speed, and timeliness in the

provision of information needs

Totally Unacceptable

Unacceptable

Acceptable

Perfectly Acceptable

0

7

59

47

0 %

6 %

52 %

42 %

3.35

Acceptable

Usefulness of information found in the

Zalora Philippines Facebook page

Totally Unacceptable

Unacceptable

Acceptable

Perfectly Acceptable

2

7

55

49

2 %

6 %

49 %

43 %

3.34

Acceptable

Ease of sharing information and

connecting Zalora Philippines and its

consumers

Totally Unacceptable

Unacceptable

Acceptable

Perfectly Acceptable

1

5

46

61

1 %

4 %

41 %

54 %

3.48

Acceptable

Over-all 3.39

Acceptable

Page 49: The Effectiveness of Facebook as Perceived by its Fans An ...

42

Respondents of the study rated the reliability, speed, and timeliness of the

Facebook page in providing the information needs of consumers with a mean of 3.35.

The usefulness of information in the page has a mean of 3.34. Lastly, the ease of

information sharing and connecting both parties has a mean of 3.48. The over-all extent

of acceptance of Facebook as a provider of relevant consumer information for the study‟s

respondents is acceptable grounded on a mean of 3.39.

Table 5. Extent of Acceptance of Facebook as a Forum for Closing Sales and Business

Deals

Extent of acceptance of Facebook as a

forum for closing sales and business

deals in terms of:

Frequency

(N=113)

Percentage

(%)

Mean and

Qualitative

Interpretation

How the Zalora Philippines Facebook

page influenced their decision to buy the

products posted on their page

Totally Unacceptable

Unacceptable

Acceptable

Perfectly Acceptable

2

17

74

20

2 %

15 %

65 %

18 %

2.99

Acceptable

Cost-effectiveness of closing sales on

Facebook

Totally Unacceptable

Unacceptable

Acceptable

Perfectly Acceptable

2

16

65

30

2 %

14 %

58 %

27 %

3.09

Acceptable

Practicality and convenience of closing

sales with Facebook

Totally Unacceptable

2

2 %

3.19

Acceptable

Page 50: The Effectiveness of Facebook as Perceived by its Fans An ...

43

Unacceptable

Acceptable

Perfectly Acceptable

15

55

41

13 %

49 %

36 %

Over-all 3.09

Acceptable

Table 5 shows the results of the data gathered regarding the extent of acceptance

of Facebook as a forum for closing sales and business deals. As indicated, the over-all

extent of acceptance of Facebook as a forum for closing sales and business deals is

acceptable based on a mean of 3.09. All three items under this variable were also

acceptable to the respondents. The item as to how the Zalora Philippines Facebook page

influences the decision of the respondents on purchasing the brand‟s products garnered a

mean of 2.99, which is the lowest ranked item among all the variables. The cost-

effectiveness of closing sales is also deemed acceptable with a mean of 3.09. Finally, the

practicality and convenience of closing sales on Facebook is deemed acceptable as well

with a mean of 3.19.

Table 6. Extent of Acceptance of Facebook as Medium of Advertisement

Extent of acceptance of Facebook as

medium of advertisement in terms of:

Frequency

(N=113)

Percentage

(%)

Mean and

Qualitative

Interpretation

How easily the consumers are influenced

by ads posted on the brand’s Facebook

page

Totally Unacceptable

Unacceptable

Acceptable

Perfectly Acceptable

2

4

54

53

2 %

3 %

48 %

47 %

3.40

Acceptable

Page 51: The Effectiveness of Facebook as Perceived by its Fans An ...

44

How aware the consumers are of the

content

Totally Unacceptable

Unacceptable

Acceptable

Perfectly Acceptable

1

13

56

43

1 %

12 %

50 %

38 %

3.25

Acceptable

How interesting the posted

advertisements are

Totally Unacceptable

Unacceptable

Acceptable

Perfectly Acceptable

2

5

54

52

2 %

4 %

48 %

46 %

3.38

Acceptable

Over-all 3.34

Acceptable

As shown in Table 6, the over-all extent of acceptance of Facebook as a medium

of advertisement is acceptable grounded on a mean of 3.34. All three items, similar to the

rest of the items in other variables, are accepted by the fans of the Zalora Philippines

Facebook page. The item as to how easily the consumers are influenced by the ads posted

on the Facebook page registered a mean of 3.40, whereas the awareness of the consumers

of the content obtained a mean of 3.25. Moreover, the item as to how interesting the

posted advertisements are had a mean of 3.38

C. Criteria of a Successful Facebook Brand Page

The next table presents the gathered data from the respondents of the study to the

eight criteria for a successful Facebook page marketing adapted from Jeremiah Owyang‟s

(2010) paper. Data are presented through a frequency and percentage distribution,

Page 52: The Effectiveness of Facebook as Perceived by its Fans An ...

45

weighted mean, and a qualitative interpretation. The over-all mean for the eight criteria

are also presented at the end of the table.

Table 7. Criteria for a Successful Facebook Page Marketing

Criteria for a successful Facebook

page marketing

Frequency

(N=113)

Percentage

(%)

Mean and

Qualitative

Interpretation

1.) Sets Community Expectations -

Describes what fans can expect from

the brand

Strongly Disagree

Disagree

Agree

Strongly Agree

2

5

84

22

2 %

4 %

74 %

19 %

3.12

Agree

2.) Provides Cohesive Branding –

Completes profile information and

uploads brand logos

Strongly Disagree

Disagree

Agree

Strongly Agree

1

5

79

28

1 %

4 %

70 %

25 %

3.19

Agree

3.) Be Up to Date –

Keeps page current and consistently

adds fresh content

Strongly Disagree

Disagree

Agree

Strongly Agree

1

7

61

44

1 %

6 %

54 %

39 %

3.31

Agree

Page 53: The Effectiveness of Facebook as Perceived by its Fans An ...

46

4.) Practices Live Authenticity –

Uses first person point of view in posts

Strongly Disagree

Disagree

Agree

Strongly Agree

3

17

68

25

3 %

15 %

60 %

22 %

3.02

Agree

5.) Participates in Dialog –

Engages with fans

Strongly Disagree

Disagree

Agree

Strongly Agree

2

18

68

25

2 %

16 %

60 %

22 %

3.03

Agree

6.) Enables Peer-to-Peer Interactions –

Creates and environment that

encourages fans to interact with one

another

Strongly Disagree

Disagree

Agree

Strongly Agree

2

25

66

20

2 %

22 %

58 %

18 %

2.92

Agree

7.) Fosters Advocacy –

Encourages members to invite and

involve their friends

Strongly Disagree

Disagree

Agree

Strongly Agree

2

17

67

27

2 %

15 %

59 %

24 %

3.05

Agree

8.) Solicits a Call to Action –

Leads fans to purchase products

Strongly Disagree

Disagree

1

11

1 %

10 %

3.12

Agree

Page 54: The Effectiveness of Facebook as Perceived by its Fans An ...

47

Agree

Strongly Agree

74

27

65 %

24 %

Over-all 3.10

Agree

On the basis of data presented in Table 7, it can be inferred that the respondents of

the study agree that the Zalora Philippines Facebook page has met the criteria for

successful Facebook page marketing. The third criterion – be up to date – garnered a

mean of 3.31, which is the highest mean among the other criteria . In contrast , the

criterion, enabling peer -to-peer interactions , received the lowest mean of 2.92.

Respondents also agree that the Facebook page provides cohesive branding (x̄ = 3.19),

sets community expectations (x̄ = 3.12), solicits a call to action (x̄ = 3.12), encourages

members to invite and involve their friends (x̄ = 3.05), participates in dialog (x̄ = 3.03),

and has live authenticity (x̄ = 3.02). The fans of the Zalora Philippines Facebook page

agree that the brand meets the entire eight criteria for a successful Facebook page

marketing.

Discussion

The study posed the major research problem: Is the Facebook page of Zalora

Philippines perceived to be effective as a marketing tool by the individuals who "like" the

brand‟s Facebook page? After gathering 113 respondents, the data collected shed light to

the concepts of marketing, specifically, Facebook marketing.

Effectiveness of Facebook as a Marketing Tool

Based on the findings, it can be seen that the respondents commonly answered

"acceptable" when asked what their extent of acceptance of Facebook is. This response

Page 55: The Effectiveness of Facebook as Perceived by its Fans An ...

48

did not differ throughout the questionnaire. The means of the different sub-questions

varied from each other, but they still belong to the 'acceptable' scale of the agreed

interpretation guide.

The highest over-all mean among the four uses and gratifications on media by the

fans is the mean on their extent of acceptance of Facebook as a promotional tool with

3.51. This means that the company has successfully utilized Facebook as a promotional

tool. The fans see these efforts; hence, they accept Facebook as such. Zalora Philippines

positively makes the consumer aware of their products and services. The fans agree that

Facebook opened bigger opportunities in terms of marketing for the brand. Moreover, the

fans also deem the page as useful in promoting products and services.

The next highest over-all mean among the four is the mean on their extent of

acceptance of Facebook as a provider of relevant consumer information with a mean of

3.39. Zalora Philippines has provided its fans with relevant information but there might

still be certain information lacking. Fans of the brand would like to receive more

information seeing that most of them answered 'acceptable' only. In providing the

information needs of the fans, the respondents mostly answered 'acceptable.' They

answered the same in the two different sub-questions: the usefulness of information

found in the page and the ease of sharing information and connecting Zalora Philippines

and its consumers. The fans would like to be provided with more reliable, prompt and

timely information. They want this information to be of use to them. Through the

provision of information, the company and the consumers would have a stronger

connection.

Page 56: The Effectiveness of Facebook as Perceived by its Fans An ...

49

The second to the lowest over-all mean among the four is the mean on their extent

of acceptance of Facebook as a medium of advertisement garnering a mean of 3.34. This

mean is merely 0.05 away from the previous purpose. Fans of the brand have not only

accepted Facebook as a promotional tool, but have also accepted it as a medium of

advertisement. The two concepts differ from one another. When Facebook is used a

promotional tool, the brand aims to create awareness and promote their products and

services. On the other hand when Facebook is used as a medium of advertisement, the

brand would like to influence their views of the brand. They aim to create interesting ads

to affect the consumers. According to the results, fans of Zalora Philippines are

influenced by the advertisements posted on the page. These advertisements are usually

composed of a photo of the product as well as the corresponding price. These

advertisements are also interesting according to the respondents. They are aware of the

advertisements but since it has only acquired a mean of 3.25, Zalora Philippines could

instigate a more effective social media campaign.

Lastly, the lowest over-all mean among the four is their extent of acceptance of

Facebook as a forum for closing sales and business deals with a mean of 3.09. This mean

greatly differs from the highest over-all mean among the four. Zalora Philippines should

focus on improving this uses and gratification on media of the brand. As indicated in the

results, the fans accept Facebook as a practical and convenient way of closing sales. They

see it as cost-effective way to close sales and deals. The page influences their decision to

buy their products as well. However, this particular sub-question received the lowest

mean of 2.99 among the twelve sub-questions. This response could mean that while they

have accepted Facebook, this acceptance will not directly translate into sales. There

Page 57: The Effectiveness of Facebook as Perceived by its Fans An ...

50

might still be other factors that affect their decision on purchasing the product. The study

shows that Zalora Philippines could improve on their strategies to impact the decision of

their fans.

Upon applying the results to the study's conceptual framework, it can be

interpreted that the intensity of the consumer-Internet mediated relationship in terms of

their extent of acceptance of Facebook is acceptable for the four uses and gratification on

media. Facebook users who have "liked" the Zalora Philippines Facebook page utilize the

page for different concerns. They use and depend on the page as a promotional tool, as a

provider or relevant consumer information, as a forum for closing sales and business

deals, and as a medium of advertisement. According to the results, they accept Facebook

for the stated purposes. Because of this, it produces diverse effects to the fans

cognitively, affectively and behaviorally.

Through the gathered data, we better understand the Facebook fans of the brand.

They are mostly female, aged 20 – 25 years old, college degree holders and have an

average family monthly income of more than Php 100, 001. Zalora Philippines could

maximize this knowledge by conducting a study on what this demographic prefers. In

doing so, they would be able to target most of the fans and address their wants and needs.

The decision on whether to expand this demographic by including males and younger or

older individuals should also be considered.

These fans are also critical of the Facebook page they have “liked.” They expect

to gain something from the Facebook page, whether it is information on the company‟s

Page 58: The Effectiveness of Facebook as Perceived by its Fans An ...

51

products and services or a response to a question asked. The given criteria should be

taken into account if companies would like to maximize their use of Facebook.

Facebook is an effective channel to use but since the study shows that fans have

not perfectly accepted it as a marketing tool, as a provider of relevant consumer

information, as a forum for closing sales and business deals, and as a medium of

advertisement, marketers should still utilize other forms of marketing. They could also

improve on their online strategies in order for the fans to perfectly accept the said social

networking site. Furthermore, since Facebook is now accepted by the fans, companies

should take full advantage of the social networking site. With an over-all mean of 3.33

for the four uses and gratifications on media, Facebook is generally accepted by most

fans.

Page 59: The Effectiveness of Facebook as Perceived by its Fans An ...

52

Chapter 5

SUMMARY OF FINDINGS, CONCLUSIONS, IMPLICATIONS AND

RECOMMENDATIONS

After analyzing the gathered data, this chapter presents the summary of findings,

answers to the problems posed by the researcher which served as conclusions of the

study, implications of the study, and recommendations drawn from them.

Findings

Given these findings on the effectiveness of Facebook as a marketing tool for

Zalora Philippines as perceived by its fans, it is concluded that:

1.) The profile of a Zalora Philippines Facebook fan is a female, aged 20 – 25 years

old and a college degree holder. She also has an average family monthly income

of over Php 100, 001. This profile is obtained from a population of 910, 000

Facebook fans.

2.) The over-all extent of acceptance of Facebook by the Zalora Philippines

Facebook fans is acceptable.

a. As a promotional tool, their extent of acceptance of Facebook is

acceptable with a mean of 3.51.

b. As a provider of relevant information, their extent of acceptance of

Facebook is acceptable with a mean of 3.39.

c. As a forum for closing sales and business deals, their extent of acceptance

of Facebook is acceptable with a mean of 3.09.

Page 60: The Effectiveness of Facebook as Perceived by its Fans An ...

53

d. As a medium of advertisement, their extent of acceptance of Facebook is

acceptable with a mean of 3.34.

3.) The fans of the Zalora Philippines Facebook page agree that the brand meets the

criteria for successful Facebook page marketing.

a. The fans of the Zalora Philippines Facebook page agree that the company

sets community expectations with a mean of 3.12.

b. The fans of the Zalora Philippines Facebook page agree that the company

provides cohesive branding with a mean of 3.19.

c. The fans of the Zalora Philippines Facebook page agree that the company

is up to date with a mean of 3.31.

d. The fans of the Zalora Philippines Facebook page agree that the company

practices live authenticity with a mean of 3.02.

e. The fans of the Zalora Philippines Facebook page agree that the company

participates in dialog with a mean of 3.03.

f. The fans of the Zalora Philippines Facebook page agree that the company

enables peer-to-peer interactions with a mean of 2.92.

g. The fans of the Zalora Philippines Facebook page agree that the company

fosters advocacy with a mean of 3.05.

h. The fans of the Zalora Philippines Facebook page agree that the company

solicits a call to action with a mean of 3.12

From these conclusions, the major research problem: “Is the Facebook page of

Zalora Philippines perceived to be effective as a marketing tool by the individuals who

"like" the brand‟s Facebook page?” is answered. Since the results acquired from the study

Page 61: The Effectiveness of Facebook as Perceived by its Fans An ...

54

fell on the acceptable/agree scale, it is therefore concluded that the Facebook page of

Zalora Philippines is perceived to be effective as a marketing tool by the individuals who

“like” the brand‟s Facebook page. The research objectives of describing the people who

“like” the Zalora Philippines page in terms of gender, age, highest educational

attainment, and average family monthly income, finding out the extent of acceptance of

Facebook of those users who “like” the Zalora Philippines page in terms of the following:

as a promotional tool, as a provider of relevant consumer information, as a forum for

closing sales and business deals, and as a medium of advertisement, and determining if

the Zalora Philippines Facebook page has a successful page marketing based on the given

criteria are achieved.

Conclusions

Based on the previous chapter, the gathered data reveals the profile of Zalora

Philippines Facebook fan, the acceptance level of the fans of Zalora Philippines in terms

of Facebook as a promotional tool, as a provider of relevant consumer information, as a

forum for closing sales and business deals, and as medium of advertisement, and the

criteria of a successful Facebook page marketing met by the brand.

Zalora Philippines has continually implemented an engaging Facebook marketing

campaign. They monitor each post they have on their page. They keep their Facebook

page updated by posting new content and replying to fans who commented on their posts

everyday. Because of this, the number of Facebook fans of Zalora Philippines is growing.

If the company continues to do so and improve the points raised in this study, there is a

high possibility that the number of fans of Zalora Philippines would grow even bigger.

Page 62: The Effectiveness of Facebook as Perceived by its Fans An ...

55

The profile of a Zalora Philippines Facebook fan is shown to be a female, aged

20 – 25 years old, college degree holder and has an average family monthly income of

more than Php 100, 001. The posts on the page should then match the taste of these fans.

The posts should focus and attract fans that fall under this profile, since they comprise

most of the fans of the brand. Understanding the preferences of fans that fall under this

profile could greatly help the company.

The study shows that the fans of Zalora Philippines accept Facebook as a

promotional tool, as a provider of relevant information, as a forum for closing sales and

business deals, and as a medium of advertisement. Most of the respondents did not

choose the „perfectly acceptable‟ option. From this result it can be said that while most

fans accept Facebook as a means of marketing, they are still open to other forms of

marketing. They are aware and affected by the marketing strategy carried out by the

brand through Facebook, but deem it as not enough. With this, Zalora Philippines could

try implementing other types of marketing such as offline marketing, outbound

marketing, and trade show marketing, among others. In doing so, the company could

boost its marketing efforts.

The study also shows the fans only agree that the Zalora Philippines Facebook

page has met the eight successful Facebook page marketing criteria. According to the

data gathered, most fans agree that the page is up to date garnering a mean of 3.31.

Meanwhile, fans still agree that the page enables peer-to-peer interactions but has

garnered the lowest mean of 2.92. Zalora Philippines could make best use of this

knowledge by creating an environment that encourages fans to interact with one another.

Page 63: The Effectiveness of Facebook as Perceived by its Fans An ...

56

All criteria were answered by the „agree‟ option. The company could still improve on

each aspect in order for the fans to strongly agree that they have met the criteria.

Zalora Philippines has executed an effective marketing strategy by utilizing

Facebook as a marketing tool. The individuals who “like” the brand‟s Facebook page

perceived the Facebook page of Zalora Philippines as an effective marketing tool.

However, the company could still improve on certain points to maximize the potential it

currently holds.

Implications

This study on the effectiveness of Facebook as a marketing tool for Zalora

Philippines established the importance of social media marketing in Philippine

organizations today. Social media marketing, through the various social networking sites,

serves as a potential tool for organizations. It offers numerous advantages for a company

when used as a promotional tool, as a provider of information, as a forum for closing

sales and business deals, and as a medium of advertisement. To maximize the potential of

Facebook, one must follow certain standards to achieve successful page marketing. The

study shows that fans of the page still have not perfectly accepted Facebook. This implies

that Zalora Philippines could still improve their Facebook page to make the most of their

growing number of fans. Moreover, they should also utilize other forms of marketing as

the Facebook page proved to be not enough for the fans.

This study has explored social media marketing in the Philippine setting. This

provides readers a better understanding of the topic. This study, “The Effectiveness of

Page 64: The Effectiveness of Facebook as Perceived by its Fans An ...

57

Facebook as a Marketing Tool for Zalora Philippines as Perceived by its Fans,” has then

filled the gap on the lack of studies on social media marketing in the Philippines

Recommendations

From the findings and conclusions of the study, the researcher suggests the

following recommendations for the development of the organization and the study:

For the organization:

1. Utilizing social media in a technology-driven market should be of top

priority of Philippine companies. Today, Internet users have accepted

social media marketing. This serves as an opportunity for marketers to

capitalize the potential of social media.

2. To fully maximize the potential of Facebook as an effective marketing

tool, digital marketers are advised to bear in mind the following criteria

for successful Facebook page marketing: set community expectations,

provide cohesive branding, be up to date, practice live authenticity,

participate in dialog, enable peer-to-peer interactions, foster advocacy and

solicit a call to action. Companies would more likely be able to achieve

their marketing objectives if the stated criteria are followed. Companies

should have a long-term plan or vision in order to carry out the stated

criteria.

For future studies:

Page 65: The Effectiveness of Facebook as Perceived by its Fans An ...

58

1. The current number of fans of Zalora Philippines on their Facebook page

is 910, 000; however, the sample for the study was only 100 due to the

10% margin of error and practicality issues. It is then suggested that a

bigger sample should be studied to include more participants to answer the

research questions.

2. Since the Zalora Philippines Facebook page has two types of posts, the

question as to which of these two types are more effective as a marketing

tool is raised. Identifying the particular post which translated into sales or

generated more buzz is recommended.

3. The study only focused on the Facebook page created by Zalora

Philippines. The other types of Facebook marketing such as “Sponsored

Stories” or “Marketplace Ads” could be investigated in future studies.

Researchers could find out if these types of marketing are also effective as

a marketing tool.

4. Future studies could also determine if increasing the activity on the page

during peak seasons for shopping, such as the holiday and summer

seasons, would be beneficial to the company. In doing so, Zalora

Philippines could devise a social media campaign to their benefit.

5. A handful of other social networking sites are also being utilized today as

marketing tools. These social networking sites could be the main focus of

other future studies. Some of these social networking sites include Twitter,

Instagram, YouTube, and Tumblr.

Page 66: The Effectiveness of Facebook as Perceived by its Fans An ...

59

6. Future studies could also focus on comparing and contrasting the official

website of the company (http://www.zalora.com.ph) and other social

networking sites. Researches on what is more effective as a marketing tool

can be explored.

7. Since Zalora Philippines is only one of the many brands that has utilized

Facebook as a marketing tool, studying other companies in other fields

would contribute to the limited studies of social media marketing in the

country. Other fields that have utilized Facebook as a marketing tool are

the airlines industry, banking industry, and fast-moving consumer goods

(FMCG) industry.

8. The study focused on the effectiveness of Facebook as a marketing tool.

For future studies, researchers could find out the effectiveness of

Facebook in a different aspect. For example, future studies could focus on

the effects of Facebook on brand loyalty or purchase intention.

9. The study is quantitative in nature and approach. However, a qualitative

study could also be employed in the future. Interviews with both the

company and the fans could be used as data for the study.

Page 67: The Effectiveness of Facebook as Perceived by its Fans An ...

60

REFERENCES

Ahlqvist, T., Bäck, A., Halonen, M., & Heinonen, S. (2008). Social media roadmaps

exploring the futures triggered by social media. VTT Tiedotteita - Valtion

Teknillinen Tutkimuskeskus, 13, 2454.

Alexa. The Web Information Company. (2013). The Top 500 Sites on the Web. Retrieved

September 24, 2013, from http://www.alexa.com/topsites

Angeles, R. (2010). Social Media Powered by Wordpress. Retrieved February 27, 2013,

from http://socialmediaphilippines.com/wp-content/presentations/Word

Camp2010Preso.pdf

Anjum, A., More, V. S., & Ghouri, A. M. (2012). Social Media Marketing: A Paradigm

Shift in Business. International Journal of Economics Business and Management

Studies, 1,(3).

American Marketing Association. (2008).

Ball-Rokeach, S. J. (1998). A theory of media power and a theory of media use: Different

stories, questions, and ways of thinking. Mass Communication and Society, 1(1),

5-40.

Ball-Rokeach, S. J. & DeFleur, M. L. (1976). A Dependency Model on Mass-Media

Effects. Communication Research, 3, 3–21.

Bashar, A., Ahmad, I., & Wasiq, M. (2012). Effectiveness of Social Media as Marketing

Tool: An Empirical Study. International Journal of Marketing, Financial Services

& Management Research, 1,(11).

Bayne, K. (2011). The Effectiveness of Social Media Marketing: An Experimental

Inquiry on College Students' Awareness of, Interest in, and Intention to

Participate in a Campus Recreation Special Event. Kinesiology Theses, Paper 2.

Boyd, D. M. & Ellison, N. B. (n.d.). Social Network Sites: Definition: History, and

Scholarship. Retrieved November 30, 2013, from http://www.danah.org/papers/

JCMCIntro.pdf

Casquite, N. (2012). Facebook as an Effective Marketing Tool. The Paulinian Compass,

2, (3).

Chartered Institute of Marketing. (2008).

Constant Contact. (2012). 12 Awesome Facebook Marketing Campaigns. How small

business use Facebook to get big results. Retrieved September 8, 2013, from

http://img.constantcontact.com/docs/pdf/12-awesome-facebook-marketing-

campaigns-20121018.pdf

Page 68: The Effectiveness of Facebook as Perceived by its Fans An ...

61

Ehmke, C., Fulton, J., & Lusk, J. (n.d.). Marketing’s Four P’s: First Steps for New

Entrepreneurs. Retrieved September 24, 2013, from

http://www.extension.purdue.edu/ extmedia/ ec/ec-730.pdf

Erdogmus, I. E. and Cicek, M. (2012). The Impact of Social Media Marketing on Brand

Loyalty. Procedia - Social and Behavioral Sciences, 58.

Facebook. (2011). Best Practice Guide. Marketing on Facebook. Retrieved September 8,

2013, from http://ads.ak.facebook.com/ads/FacebookAds/Best_Practice_Guide_

042811_10.pdf

Facebook. (2013). Key Facts. Retrieved December 1, 2013, from

http://newsroom.fb.com/Key-Facts

Gershon, R. A. (2013). Facebook: A Business Perspective on the Power of Intelligent

Networking and Social Media. In M. Friedrichsen and W. Mu¨hl-Benninghaus

(Eds.), Handbook of Social Media Management, (pp. 375-389). Berlin: Springer-

Verlag.

Graham, W. (2008). Facebook API Developers Guide. New York, NY: Apress.

Gregori, A. & Baltar, F. (2011). „Ready to complete the survey on Facebook‟ Web 2.0 as

a research tool in business studies. International Journal of Market Research, 55,

1.

Griffin, E. (2011). A First Look at Communication Theory. (8th ed.). New York, NY:

McGraw-Hill.

Hoffman, D. & Fodor, M. (2010). Can you measure the ROI of your social media

marketing. MIT Sloan Management Review. 52 (1), 41-9.

Joshi, M. (2012). Essentials of Marketing. Retrieved June 18, 2013, from

http://bookboon.com/en/essentials-of-marketing-ebook

Kaplan, A. M., & Haenlein, M. (2012). Users of the world, unite! The challenges and

opportunities of social media. Business Horizons, 53(1), 61.

Kietzmann, J. H., Hermkens, K., McCarthy, I. P., & Silvestre, B. S. (2011). Social

media? Get serious! Understanding the functional building blocks of social media.

Business Horizons, 54, 241–251.

Kirby, J., Marsden, P. (2006). Connected Marketing, Oxford: Elsevier.

Kirtis A., & Karahan F. (2011). To Be or Not to Be in Social Media Arena as the Most

Cost-Efficient Marketing Strategy after the Global Recession. Procedia - Social

and Behavioral Sciences. 24, 260-268.

Kotler, P., & Keller, K. L. (2006). Marketing Management. (12th ed.). Upper Saddle

River: Pearson/Prentice Hall.

Page 69: The Effectiveness of Facebook as Perceived by its Fans An ...

62

Kotler, P., Armstrong, G., Wong, V., & Saunders, J. A. (2008). Principles of Marketing.

Upper Saddle River: Pearson/Prentice Hall.

Kunz, M. B., & Hackworth, B. A. (2011). Are consumers following retailers to social

networks? Academy of Marketing Studies Journal, 15,(2).

Labucay, I.D. (2011). Internet Use in the Philippines. Retrieved February 27, 2013, from

http://wapor.unl.edu/wp-content/uploads/2011/09/Labucay.pdf

Laroche, M., Habibi, M. R., & Richard, M. (2012). To be or not to be in social media:

How brand loyalty is affected by social media? International Journal of

Information Management, 33, 76 - 82.

Laroche, M., Habibi, M. R., Richard, M., & Sankaranarayanan, R. (2012). The effects of

social media based brand communities on brand community markers, value

creation practices, brand trust and brand loyalty. Computers in Human Behavior,

28, 1755–1767.

Laudon, K. C. & Traver, C. G. (2008). E-commerce: Business, technology, society (4th

ed.). Upper Saddle River: Pearson/Prentice Hall.

Mangold, W. G., & Faulds, D. J. (2009). Social media: The new hybrid element of the

promotion mix. Business Horizons, 52, 357–365.

Marrs, M. (2013). 7 Ways to Use Facebook for Marketing. Retrieved November 28,

2013, from http://www.wordstream.com/blog/ws/2013/04/15/facebook-marketing

Minges, M., Magpantay, E., Firth, L. and Kelly, T. (2002). Pinoy Internet: Philippines

case study. Retrieved from the International Telecommunication Union‟s (ITU)

Internet Case, from www.itu.int/asean2001/reports/material/PHL%20CS.pdf

Muniz, A., & O‟Guinn, T. (1996). Brand community and the sociology of brands. In the

special session, communities of consumption: A central metaphor for diverse

research. In K. P. Corfman & J. G. Lynch (Eds.), Advances in consumer research,

(Vol. 23, pp. 265–266). Provo, UT: Association for Consumer Research.

Michaelidou, N., Siamagka, N. T., & Christodoulides, G. (2011). Usage, barriers and

measurement of social media marketing: An exploratory investigation of small

and medium B2B brands. Industrial Marketing Management, 40, 1153–1159.

National Telecommunication Commission. (2006). http://www.nscb.gov.ph/statref/

pub_info. asp?call_no=NTCAR+2006

Nielsen Holdings (2012). State of the Media: The Social Media Report 2012.

Nikov, A. (2010). E-commerce Systems. Retrieved November 29, 2013, from

http://www2.sta.uwi.edu/~anikov/comp6350/questions.pdf

Page 70: The Effectiveness of Facebook as Perceived by its Fans An ...

63

Offenberger, B. (2013). Social Media Marketing: Why Your Business Needs to Market

Actively on Facebook. Retrieved September 16, 2013, from

http://www.casualliving.com/article/565453-Social_Media_Marketing.php

Owyang, J. (2010). The 8 Success Criteria for Facebook Page Marketing. Retrieved

January 3, 2014, from www.slideshare.net/jeremiah_owyang/the-8-success-

criteria-for-facebook-page-marketing#

Packer, R. (2011). Social Media Marketing: The Art of Conversational Sales. Retrieved

August 20, 2013, from http://wsiinstitute.com/media/ec/SocialMediaMarketing

Whitepaper.pdf

Perreault, Jr., W. D., Cannon, J. P., & McCarthy, E. J. (2012). Basic Marketing: A

Strategic Marketing Planning Approach. Retrieved September 23, 2013, from

www.mhhe.com/business/marketing/fourps/pdf/chap1.pdf

Poynter, R. (2008). Facebook: the future of networking with customers. International

Journal of Market Research, 50,(1).

Ramsaran-Fowdar, R. R., & Fowdar, S. (2013). The Implications of Facebook Marketing

for Organizations. Contemporary Management Research, 9,(1), 73–84.

Rubin, A M. & Windahl, S. (1986). The Uses and Dependency Mode of Mass

Communication. Critical Studies in Mass Communication, 9, 193.

Shih, C. (2009). The Facebook Era: Tapping Online Social Networks to Build Better

Products, Reach New Audiences, and Sell More Stuff. Prentice Hall Direct.

Socialbakers. (2013). Philippines Facebook Statistics. Retrieved February 28, 2014, from

http://www.socialbakers.com/facebook-statistics/philippines

Stelzner, M A. (2012). 2012 Social Media Marketing Industry Report: How Marketers

Are Using Social Media to Grow Their Businesses. Social Media Examiner.

The Business Times. (2012). Social media: the business perspective. Retrieved February

25, 2013, from http://0-search.proquest.com.lib1000.dlsu.edu.ph/docview/

921166041?accountid=28547

Treem, J. W. & Leonardi, P. M. (2012). Social Media Use in Organizations: Exploring

the Affordances of Visibility, Editability, Persistence, and Association.

Communication Yearbook, 36, 143 - 189.

Universal McCann. (2008). "Power To The People: Social Media Tracker, Wave 3."

Retrieved December 1, 2013, from http://www.universalmccann.com/Assets/

wave_ 3_20080403093750.pdf

Urbonavičius, S., Dikčius, V., & Kasnauskienė, G. (2007). Importance of Marketing

Functions in a Company. Engineering Economics, 53(3).

Page 71: The Effectiveness of Facebook as Perceived by its Fans An ...

64

Vargo, S. L., & Lush, R. F. (2004). Evolving to a New Dominant Logic of Marketing.

Journal of Marketing, 68, 1–17.

Weinberg, T. (2009). "The New Community Rules: Marketing on the Social Web." 1st

Edition. O' Reilly: California.

Wikstrom, E., & Wigmo, J. (2010). Social Media Marketing: What role can social media

play as a marketing tool? (Bachelor Thesis, Linnaeus University, 2010). ProQuest

Dissertations and Theses Database

Page 72: The Effectiveness of Facebook as Perceived by its Fans An ...

65

Appendix A – Zalora Philippines Facebook Page Content during Data Gathering Period

from January 21 to February 6, 2014. (Retrieved March 24, 2014).

Page 73: The Effectiveness of Facebook as Perceived by its Fans An ...

66

Appendix B – Research Instrument

Dear Respondent:

I am Rose Anne J. Gopez, a 4th year BA Organizational Communication student from the

University of the Philippines Manila. I am conducting a research on the effectiveness of

Zalora Philippines’ Facebook brand page (https://www.facebook.com/ZaloraPH) as a

marketing tool for the organization.

The purpose of this survey is to know your views about Zalora Philippines' Facebook page. Rest

assured that your answers will be kept confidential and will be used solely for this study. Your

participation is vital for the success of this undertaking.

Thank you very much.

Respectfully yours,

Rose Anne J. Gopez.

Researcher

PART I

Name (Optional):

Gender:

Male

Female

Age:

19 years old and below

20 to 25 years old

26 to 28 years old

29 years old and older

Highest Educational Attainment:

High School Graduate

College Degree

Master‟s Degree

Others: ____________________________

Average Family Monthly Income:

Below Php 10,000

Php 10,001 to Php 20,000

Php 20,001 to Php 50,000

Php 50,001 to Php 100,000

Over Php 100,001

Page 74: The Effectiveness of Facebook as Perceived by its Fans An ...

67

PART II

Please choose the response that best corresponds to the degree of your agreement to the

statements below.

Totally

Unacceptable

Unacceptable Acceptable Perfectly

Acceptable

1.) What is the extent of your acceptance of Facebook as a promotional tool?

A. reliability in promoting

products and services

B. makes consumers aware of

products and services

C. provides bigger opportunities

for the business

Totally

Unacceptable

Unacceptable Acceptable Perfectly

Acceptable

2.) What is extent of your acceptance of Facebook as a provider of relevant

information?

A. reliability, speed, and

timeliness in the provision of

information needs

B. usefulness of information

found in the Zalora

Philippines Facebook page

C. ease of sharing information

and connecting Zalora

Philippines and its consumers

Totally

Unacceptable

Unacceptable Acceptable Perfectly

Acceptable

3.) What is the extent of your acceptance of Facebook as a forum for closing sales and

business deals?

A. how the Zalora Philippines

Facebook page influenced

your decision to buy the

products posted on their page

B. cost-effectiveness of closing

sales on Facebook

C. practicality and convenience

of closing sales with

Facebook

Page 75: The Effectiveness of Facebook as Perceived by its Fans An ...

68

Totally

Unacceptable

Unacceptable Acceptable Perfectly

Acceptable

4.) What is the extent of your acceptance of Facebook as a medium of advertisement?

A. how easily the consumers are

influenced by ads posted on

the brand's Facebook page

B. how aware the consumers are

of the content

C. how interesting the posted

advertisements are

PART III

Strongly

Disagree

Disagree Agree Strongly

Agree

5.) How does the Zalora Philippines Facebook page meet these criteria?

A. Sets Community Expectations –

Describes what fans can expect

from the brand (e.g. products,

news, information, etc.)

B. Provides Cohesive Branding –

Completes profile information

and uploads branded logos

C. Be Up to Date –

Keeps page current by adding

fresh content

D. Practices Live Authenticity –

Uses first person point of view

in posts

E. Participates in Dialog –

Engages with fans

F. Enables Peer-to-Peer

Interactions –

Creates an environment that

encourages fans to interact with

one another

G. Fosters Advocacy –

Encourages member to invite

and involve their friends

H. Solicits a Call to Action –

Leads fans to purchase products

If you have any questions or comments, you may contact me through the following:

[email protected] or +63917 801 5850. Thank you very much!

Page 76: The Effectiveness of Facebook as Perceived by its Fans An ...

69

Appendix C – Pilot Test Results

The company in focus is Lazada Philippines. Over 30 respondents were gathered for the pilot testing. After

tabulating the gathered responses, the results were subjected to SPSS, a statistical analysis program. The

analysis yielded the following results:

PART II

The result is 0.943.

PART III

The result is 0.893

Since both are higher than 0.7, the questionnaire is valid.

Page 77: The Effectiveness of Facebook as Perceived by its Fans An ...

70

Appendix D – Letter to Zalora Philippines

Rose Anne J. Gopez

Block 12, Lot 10, Phase 5, the Oaks,

Carmona Estates, Carmona, Cavite

+63917 801 5850

[email protected]

December 26, 2013

Ms Jessica de Mesa

Zalora Philippines

4F, 50 Jupiter Street,

Makati City Metro Manila,

To Ms Jessica de Mesa:

Greetings!

I am Rose Anne J. Gopez, a 4th year student of the BA Organizational Communication from

the University of the Philippines Manila. A graduation requirement of my degree is an

undergraduate thesis related to the role of communication in an organization. I have chosen to

study the effectiveness of Facebook as a marketing tool for an organization.

It is in this light that I write you this letter. Zalora Philippines is famous for its online advertisements

in Facebook. I would like to ask for your permission to contact your company‟s Facebook fans to

know their views on the company‟s Facebook marketing efforts.

If granted my request, I also plan to talk to a representative of your marketing department in order to

gain a better understanding of your marketing efforts and strategy. Rest assured that all information

gained from this study will only be used for academic purposes.

I would greatly appreciate your company's participation in helping me accomplish this requirement. In

return for your assistance, I will share with you the results of my study. Together, we would

understand how Facebook can contribute to your company's marketing efforts.

May I request for an opportunity to meet with you in order to discuss this in detail? Should you need

to contact me, you may send an email to [email protected] or text and/or call me at +63917 801

5850.

Thank you for your time and I am hoping that you can accommodate this request.

Respectfully yours, Noted by:

Rose Anne Gopez. Myra Rondaris

Researcher Thesis Adviser