Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
443 ww.globalbizresearch.org
The Impacts of Social Media on Online to Offline (O2O) in Vietnam
NGUYEN THI KIM LIEN,
Graduate student, School of Business Administration,
Chang Gung University, Taiwan,
E-mail: [email protected]
HENRY KER-CHANG CHANG,
Professor, Dept. Information Management,
Chang Gung University, Taiwan,
E-mail: [email protected]
HARDY LIN,
Professor, Dept. Information Management,
Chihlee University of Technology, Taiwan,
E-mail: [email protected]
___________________________________________________________________________________
Abstract
Nowadays, social media is increasing at the numerous rates of 1.8 billion users in the world.
It not only permits people communicate directly with each other, but also allows companies
can advertise and sell their products to customers. Social media provides the huge
opportunity for producers to understand their customers well. Moreover, the
most applications of social media are becoming a suitable space to retrieve the humorous
customer’s experience, opinions and preference regarding each brand, product or some
special goods. According to chabrol in 2015 Vietnam has 28 million social media accounts,
the most popular social platform are Facebook (21%), Google+ (13%), Skype (12%) and
Viber (9%). Taking advantages of popularity and accessibility of social networking, especially
Facebook, in the recent years have a lot of companies, group members or an individual run a
business by creating a Facebook fan page as a marketing tool. As a matter of fact, if this tool
is being efficiently used, it will bring many benefits to the company. The purpose of this
study provides an Online to Offline (O2O) E-Commerce Service Model and takes the social
relationship steadfast, which can help marketers or brands to know their customers via social
network existing Big Databank (especially Facebook in Vietnam) and the methodology of
research data is surveyed by SPSS software to do analysis by which they can adapt the
current social commerce marketing strategy more effectively and responsively.
___________________________________________________________________________
Key Words: Social media, online to offline (O2O), SPSS, Big Databank
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
444 ww.globalbizresearch.org
1. Introduction
Online social networking websites such as: Facebook, Twitter, and Myspace etc. have
made a huge impact not only on individual’s life but also effect on how internet users
communicate, share their data, creating and maintaining their profile, establishing the links
with their friends (Faraz and Zohaib, 2012). Moreover, success of online social networks with
growing trends has allowed individual or organization to break through this new domain for
marketing their product. Many social networks allow companies to market their product
through different tools provided by them.
Facebook is the most successful social media network with more than 1.8 billion users and
the number is increasing day by day (Statista, 2016), it has offered many marketing tools for
the companies to target their customer like creating groups, pages. In Vietnam recently has
created a new wave of stimulating the development of social media. According to statistic in
2015, Vietnam has 28 million active social media accounts: Facebook 21%, Google+ 13%,
Skype 12%, etc. (Chabrol, 2015). Thus, the trend of marketing on social media is being more
popular, by spending a small fee or even no cost for brand promotion on social media,
companies can achieve positive results
Buying process including problem recognition, information search, evaluation of
alternatives, purchasing behaviors, after buying behaviors, and satisfaction is the consequence
of buyer’s experience during many purchasing stages (Kolter, 1997). Therefore,
understanding social users profile and how their satisfaction with the model O2O exist in
Vietnam nowadays is needed which helps entrepreneur can easy to increase brand awareness
and loyalty by customers. Moreover, they also can run targeted ads with the real time result.
Thus, we study the impacts of social network on Online to Offline (O2O) in Vietnam, to
achieve the overall aim of study, the following objectives are fulfilled: (1) identified the
profile of customer who buy product on social media, (2) identified which kind of products is
the most popular being buy via social media, (3) defining the reason why a customer buys a
product online, (4) customer attitude towards the feedback online from others customer, (5)
understanding customer satisfaction towards the O2O model in Vietnam.
2. Literature Review
Social media is the collective of online communication channels dedicated to
community-based input, interaction, content sharing and collaboration, websites and
applications dedicated to forums, micro blogging, social networking, social bookmarking,
and wikis are among the different types of social media (Margaret, 2013). According to the
statistic of the most popular social networking sties in the world, Facebook is the highest with
1,1 billion monthly visitors, Twitter stays in the second place with 310 million monthly
visitors and 120 million belong to Google+, etc. (eBizMBA guide, 2016). Similarly, according
to a research about social media usage in Asia, Vietnam has 77.58 % people in use social
media multiple times per day. Facebook is the most social networking site which they chose
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
445 ww.globalbizresearch.org
to use, following that are Zalo, Google+, Viber, Instagram and Twitter (Infogr.am, 2016).
There are a lot of studies to recognize and predict the relationship between products and
shopping behavior, these studies were indicating a list of products which would be suitable to
be sold via the internet. Miller and Lammas (2010) indicated that intangible products category
which provides information to consumer, such as, online video, music, computer software,
stock market, financial reports and weather information; tangible products category that has
variety classes, such as automobiles, electronic devices, books, clothes, accessories, flowers,
and jewelry.
Constantinides (2004) found that the important things of visiting the website are to help
consumers to communicate with other users in order to achieve their purposes. Using social
media becomes one of necessities that affect consumers via several factors; these factors can
be classified such as: functionality factors, design factors, psychological factors, and
information factors. To be more specific, functionality factors that enhancing the online
experience by presenting the virtual client with a good functioning, easy to explore, fast,
interactive website. Design factors that consumers are affected by the design characteristic of
web page, if the website is good designed and usually updated, they will be more attracted to
buy online. Psychological factors affected to consumers’ attitude towards online buying. For
instance, if consumers build a trust on a website they will have trend to buy online
comfortably and reduce uncertainty towards a product psychological factors, and information
factors. The last is information factors: consumers will be willing to buy online if diversity of
products and information are provided sufficiently. Also, offers warranties and guarantees that
are provided along with products will encourage consumers to shop online (Limayem et al.,
2000).
Kotler (1997) customer buying behavior is the outcome of the needs and the wants of the
consumer and they purchase to satisfy these needs and wants which depending on the
personal factors such as: age, psychology and personality. However, in the term of online
segmentation, there is a slight difference, this is because of there are two main online
segments we can refer to which are “Online Insiders” and “Social Clickers” (Riegner, 2007).
Consumers who actually buy online (Online Insiders): usually consumers’ choices are
influenced strongly by online brands and consumers are impacted to each other. This kind of
event usually affects the repurchase process as a result. Therefore, consumers are gradually
turning to social media in order to get more information on which to base their decisions
(Ramsunder, 2013). For instance, it can be notice that most of online shoppers tend to be
younger, wealthier, better education, more likely to spend time on internet, and shop online
(Levin et al., 2005); Consumers who browse the internet without buying online (Social
Clickers). Lee (2013) indicated that they are daily active people who tend to use the internet
for different purposes, such as getting news, doing different researches for different subject,
sharing information and communicating with other users and from other cultures. Moreover,
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
446 ww.globalbizresearch.org
they are heavy communicators, but the most participatory ones trend to be younger, and less
wealthy, these Social Clickers may not be influencing purchase decision today, but could
become strong influencers in the future (Vinerean et al., 2013).
Levy and Weitz (2007) noted that the satisfaction is a valuation about how much could be
the retailer meet or exceed customer’s expectation. Individuals who pay for a product or
service but who do not use this product or service should not be expected to have the type of
satisfaction or dissatisfaction that a product or service user will have and satisfaction is a
feeling; it is a short-term attitude that can readily change given a constellation of
circumstances. It resides in the user’s mind and is different from observable behaviors such as
product choice, complaining, and repurchases (Oliver, 1997).
Zhang (2014) indicated that model O2O E-commerce, O2O refers to a combination of
offline business and online commerce. O2O mode is characterized by its information flow and
cash flow on online, logistics and ecommerce flow on the offline which greatly expanded the
scope of business of e-commerce. The model construction of O2O E-commerce is including
these aspects: Merchant services information, recommendation and search related to which
users can search what they want to obtain service categories such as: catering, entertainment,
accommodation, etc. Online payment: when the user selects a decision to buy business
services, namely online payment into links, and then automatically in third-party payment
platform. Offline consumption: users can reply on proof of payment to get the appropriate
geographic location near the business entity to enjoy the service. Consumer feedback:
consumer can choose to comment the dealer service in O2O e-commerce platform after
completion of offline consumption.
Since the e-commerce should consider not only the information system but also marketing
strategy. Regarding the information system field, there are three main factors are e-commerce
system quality, product and delivery quality, and perceived price which impacts to customer
satisfaction (Lin, et al., 2011). E-commerce system quality: regarding the investigation of
consumers’ e-commerce behavior, the e-commerce system quality including: information
quality, system quality, service quality (Lin, 2007). Product quality and delivery quality:
perceived product quality is defined as the customer’s judgment about overall excellency or
superiority. On the other hand, the delivery of a product can affect all fundamental objectives
of the value propulsions. Ahn et al. (2004) indicated that the timely and reliable delivery
increase user satisfaction so they will shop again. Perceived price: from the customer’s
perspective, price is what given up or scarified to obtain a product (Zeithaml, 1988).
Perceived price examined the customer ratings of pre-purchase and post purchase service to
explain price variations in the online book market and found that the higher prices of the three
market leaders were most likely associated with higher satisfaction ratings of both pre- and
post-purchase satisfaction (Cao and Gruca, 2004).
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
447 ww.globalbizresearch.org
3. Methodology.
3.1 Research Questions
As indicated in the introduction, nowadays, social media creates the big change for
marketers who are introducing their products or services to consumers via the world of
connection. If this tool is used efficiency, it will create a huge profit for enterprise. But to
achieve those things, marketers should understand consumer attitudes toward products or
services which are selling on social media. Therefore, the purpose of this research is to
understanding the impacts of social media to O2O in Vietnam. Thus, the study rise two main
question
1. Which factors impact to deciding buy a product of users via social media?
2. What is customer’s attitude toward the model of O2O in Vietnam?
3. Which factors are the most impacts to customer satisfaction when they use O2O
model?
To answer those questions the research identifies seven objectives following:
- Identified the profile of customer who buy product on social media.
- Identified which kind of products is the most popular being buy via social media.
- Defining the reason why a customer buys a product online.
- Customer attitude towards the feedback online from others customer.
- Understanding customer satisfaction towards the O2O model in Vietnam
3.2 Research Model
Besides understanding profile of the consumers, the product is most being bought on
social media, the reason why they buy on social media, and how their attitude towards the
feedback from another customer. This study is also focused to know about customer
satisfaction towards O2O in Vietnam, the research used the model of Lin, et al. (2011) as in
Figure 1:
Finger 1: Model of customer satisfaction (Lin, et al., 2011)
3.3 Hypotheses and Development
According to the literature review, there are seven important independent variables of
E-commerce information system usage and user satisfaction, five independent variables of
E-commerce
System quality
Product quality and
delivery quality
Perceived price
Customer satisfaction
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
448 ww.globalbizresearch.org
product quality and delivery quality, Perceived price has a positive influence on online user
satisfaction. These factors have been applied in many contexts as indicated in the Table 1:
Table 1: Hypothesizes of the O2O customer satisfaction model
Factors Hypothesis formulated
E-commerce system
quality
H1: Design of the page has a positive influence on customer
satisfaction
H2: Easy to make order has a positive influence on customer
satisfaction
H3: Easy to find products have a positive influence on customer
satisfaction.
H4: Easy to pay via the system has a positive influence on customer
satisfaction
H5: Easy to give back products has positive influence on customer
satisfaction
H6: Employee’s attitude of O2O business has a positive influence
on customer satisfaction
H7: Feeling safe when customer pays via the payment system
Product quality and
delivery quality
H8: Information about products are mention on web page have
positive influence on customer satisfaction
H9: Diversity kinds of products has a positive influence on customer
satisfaction
H10: Quality of products point out on website and the quality of
customer reception have positive influence on customer satisfaction
H11: Delivery on time has a positive influence on customer
satisfaction
H12: Product quality has a positive influence on customer
satisfaction
Perceived price H13: The price is cheaper than traditional shopping goods; it
has a positive influence on customer satisfaction.
3.4 Research method
This study is focused on consumers who use social media to buy products. Thus, we use
quantitative research methodology by survey on social media and use Microsoft Excel 2010
and an SPSS 19 program to do the analysis.
The questionnaires are designed with Google Driver and send it to users who have social
media account such as: Facebook, Zalo, Viber, et al. as well as online shopping groups in
Vietnam to measure three factors: E-commerce system quality, product quality and delivery
quality and perceived price are effect to customer satisfaction, the scale’s question was
converted to five point Liker type scale (1: Strongly disagree, 5: Strongly agree).
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
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The research is used Regression Analysis in SPSS is the method of determining the
relationship between variables. It used to establish a linear relationship between the dependent
variable and independent variable. Regression analysis is carried out the function of the
independent variable called as the regression function and is used widely for prediction and
forecasting. Moreover, it is also sometimes administered to determine the causal relationships.
The accuracy of the regression analysis carried out is highly dependent on the accuracy of
data used for analysis. The regression model consists of the following variables:
1. Independent variable X
2. Dependent variable Y
3. Unknown factors (Beta)
Regression can mainly be of two types, simple linear regression and noon –linear
regression. This procedure is used because we want to find out how the customers satisfy with
the current O2O in Vietnam as well as which the factors are the most impacts to their
satisfaction.
4. Results and Discussion
The study is focused on customers who have experience about online shopping. There
were totally 710 questionnaires sent to users in Vietnam and got the feed backs from 619
users, from the Microsoft Excel 2010, there were 619 people who have social media, but just
had only 439 users who said that they have been bought products or service via social
networking. The rest number of 619 indicated that social clickers accounted for 29%, male
was outstanding with 107 in total 180 social clickers and the activities when they entered
social media were that: reading the news, connecting with their friends, just only 17 users
were answered that they use social media to looking for products. The result indicated that
online shopping through social media is still new in Vietnam.
In 439 customers who have bought products or service on social media, Facebook is the
most application which users refer to choose for shopping online accounted for 78% and 14%
was belong to Zalo in total 439 answers. Interestingly, there was 94% users’ responding that
they access to social media every day and each time they spend at least 30 minutes to 1 hour
on social activities reached to 56% of the answers and 30% were people who usually stay in
social media from 10 minutes to 30 minutes. The following Table 2 below is description the
relation among gender, age and education.
Table 2: The Description among Gender, Age and Education
Gender Age Education
<16 16-20 21-25 26-30 >30 Student Worker Employee Manager others
Male (42%, 185) 0 11 105 47 22 73 11 64 15 22
Female (254, 58%) 6 32 140 61 15 104 12 98 0 40
Total (439) 6 43 245 108 37 177 23 162 15 62
According to the Table 2, the percentage of female is exceeding than male (58% and 42%
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
450 ww.globalbizresearch.org
respectively). What is mention is that the age of users, who use social media in Vietnam for
buying a product or service are younger which the age around 21 years old to 25 years old
and almost they are student and employee, these things consideration on both side of gender
are man and women. Moreover, in total 439 customers who had experience of buying the
products, there were 60% of users were answered that they always read comment before buy
a product, 32% of people said that they often read comments from another customer and just
2% of consumers were replied that they had never seen the comment before they made an
order as shown in Figure 2:
Figure 2: The percent of customers who have read another consumer’s comment
before purchasing
In 439 responders, who use to be bought products online in Vietnam, they have monthly
income it was not really high, 30% users have earned around 1 to 3 million VND in one
month, 24% online customers got from 3 to 5 million VND in one month, 20% responders
said that they got 5 to 8 million VND a month, and the percentage of people who earned less
than 1 million VND and greater than 8 million VND a month was achieve the same amount
with 13% in total users who bought item for consumption.
In the question about the reason why they are interesting with purchase product online,
47% customers said that through these stages they can easy to find their feverous product, 29
% complain that on social media consumers can easy to compare about product price, product
function, besides that, 9% people replied that they do not have time for shopping outside and
14% user’s answers were social media provide for them another customer feedback which
will to be their reference.
Regarding to the Figure 3 below is demonstration about products which customers refer
to buy via social network.
Figure 3: The percentage of products which customers refer to bought via social media
39%
47%
8% 6%
Electroni
c
Fashion
60%32%
6%2% Always
Often
Seldom
Never
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
451 ww.globalbizresearch.org
Figure 4: The percentage kinds of electronic and fashion products which users bought online
According to the survey data, it indicated that through social media, fashion products are
the most popular products which were being bought by consumers with 47%, the second
popular products were electronic account for 39%, cosmetic and other products obtained 8%
and 6% in total respectively, to be more specific, the Figure 4(a) represents for the percentage
of electronic products which customers were buying on social media. In 169 feedbacks (47%)
from users who were purchased electronic products online, mobile phone accounted for 37%,
laptop was 24%, camera was 6%, and 33% people had a concern about buy accessory such as:
headphone, speaker, etc., by mean social media. Regarding to the Figure 4(b) about fashion’s
customers, it shown that clothes consumption on social media which were 83%, the
percentage of users who bought bags and shoes were quite similar amount with 10% and 6%
correspondingly and just only 1% caps were acquired via social network in Vietnam.
To understand about customer satisfaction toward model O2O in Vietnam, from the
survey analysis was entered into SPSS 19 to test the research hypotheses, an aggression
analysis was performed, using customer satisfaction as the dependent variable and three
proposed factors: E-commerce system quality, product quality and delivering quality and
perceived price as the independent variables. According to the Table 3, six hypotheses were:
H1, H3, H9, H11, H12, H13 has significant <0.05 that mean these hypotheses correlated
positively and significantly with customer satisfaction at the confidence intervals 95%. The
standardized coefficients were 0.099, 0.145, 0.116, 0.115, 0.118 and 0.119 so the perceived
price of customer was the most important factor that influence to customer satisfaction, and
product quality also play a significantly factor which impacts to user when they purchase a
merchandise via social media. These six independent variables explained 47.9 percent
variance in user satisfaction, R Square equal to 47.9% (see Table 4).
Table 3: Coefficients hypothesis
0
10
20
30
40
Labtop Mobile phoneCamera Accessory
Electronic products (39%)(a)
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients t Sig.
0
20
40
60
80
100
clothes Bags Shoes Caps
Fashion (47%)(b)
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
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Table: 4 Model Summary
Model Summaryb
Model R R
Square
Adjusted
R Square
Std. Error
of the
Estimate
Change Statistics
R
Square
Change
F
Change df1 df2
Sig. F
Change
1 .692a .479 .463 .723 .497 30.051 13 425 .000
a. Predictors: (constant). The price is cheaper than traditional shopping, Feeling safe when customer
pays via the payment system, Easy to give back products. Easy to make order. Diversity kinds of
products, Easy to pay via the system, Delivery on time, Quality of products point out on website
and the quality of customer reception, Easy to find products, Employee’s attitude of O2O
business, Design of the page, Information about products are mention on web page, Product
quality
b. Dependent variable: Satisfaction with model O2O in Vietnam
4. Conclusions and Recommendations
Based on the finding of this research, we can conclude the fact that most consumers who
buy online are indeed young, between 21 years old to 25 years old. Almost they are students
B Std.Error Beta
(Constant)
Design of the page
Easy to make order
Easy to find products
Easy to pay via the system
Easy to give back products
Employee’s attitude of O2O business
Feeling safe when customer pays via the
payment system
Information about products are mention on web
page
Diversity kinds of products
Quality of products point out on website and the
quality of customer reception
Delivery on time
Product quality
The price is cheaper than traditional shopping
goods
.010
.104
.021
.142
.020
.048
.043
-.002
.053
.124
-.009
.115
.191
.170
.187
.048
.043
.044
.040
.035
.047
.037
.044
.047
.043
.043
0.49
.037
.099
.022
.145
.022
.056
.041
-.002
.056
.116
-.009
.115
.181
.191
.055
2.171
.485
3.216
.505
1.360
.905
-.052
1.211
2.635
-.211
2.646
3.859
4.615
.956
.030
.628
.001
.614
.175
.366
.958
.227
.009
.833
.008
.000
.000
a. Dependent Variable: Satisfaction with model O2O in Vietnam
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
453 ww.globalbizresearch.org
and employees, before purchasing a product they usually read the comment from another
customer, Facebook is the most knowing place which they choose to buy the products via
social media. Online social customers are referred with purchasing fashion on social network,
and clothes are the most kind of clothes which they want to consume, via these networks they
can easy to find their feverous product.
Regarding the factors impact to customer’s satisfaction, O2O customer satisfaction
context related to six factors: design of the page, easy to find product on the page, diversity
kind of products which sell in the page, delivery on time, product quality and percept of
customer about product’s price is cheaper than traditional shopping. In these factors, percept
about product’s price and product quality are the most important factors effect to customer
satisfaction.
According to the finding of this study, to ensure customer satisfaction, the O2O manager
should develop good information system and the service quality. Price and product quality
which is the most influence user satisfaction positively so the E-commerce operator should
consider bout how to balance between product quality and fair price in order to boots sale and
company profit. Besides that, the managers website also need to design the company page on
social network in the professional way without complicated to make sure customers can easy
to find their refer products. Moreover, the company should pay more attention to the product
sourcing and cooperate with delivery supplier to provide higher quality of delivery such as:
right address, on time and safety packaging.
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