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The Influence of Social Media Advertising on Consumer Brand Preferences and Consumption: a Case of Advertisers and Students’ Perspectives on Energy Drinks

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The Influence of Social Media Advertising on Consumer Brand Preferences and Consumption: a Case of Advertisers and Students’ Perspectives on Energy Drinks THE INFLUENCE OF SOCIAL MEDIA ADVERTISING ON CONSUMER BRAND PREFERENCES AND CONSUMPTION: A CASE OF ADVERTISERS AND STUDENTS’ PERSPECTIVES ON ENERGY DRINKS by REITUMETSE JOYCE JAFETA M.TECH: BUSINESS ADMINISTRATION In the Faculty of Management Sciences SUPERVISOR PROFESSOR PATIENT RAMBE CENTRAL UNIVERSITY OF TECHNOLOGY, FREE STATE SOUTH AFRICA June 2018 © Central University of Technology, Free State DECLARATION I, Reitumetse Joyce Jafeta, student number , hereby declare that this research paper submitted at the Central University of Technology, Free State for MTech Business Administration is my own independent work and has not previously been submitted by me at another university. I further cede copyright of dissertation in favour of the Central University of Technology, Free state. ________________ June 2018 SIGNATURE OF STUDENT DATE i | P a g e © Central University of Technology, Free State ACKNOWLEDGEMENTS I wish to express my greatest gratitude and favour to God upon the completion of my dissertation. I extol the verse from 1 Thessalonians 5:16-18: Rejoice always, pray continually, give thanks in all circumstances for this is God’s will for you in Christ Jesus in gratitude and acknowledgement that I am blessed beyond measure through this completion. The task of completing a thesis seems overwhelming but I had a dedicated supervisor in Professor Patient Rambe. He graciously took me under his wing and I thank him for holding my hand and making this road a better one. I cherish his encouragement and knowledge during my dissertation. I extend my outmost gratitude to my parents Mapalesa Merriam Jafeta, my late father Leloko Lawrence Jafeta and little brother Jankie Alphonce Jafeta for standing by me through it all. Their support helped me to achieve this milestone. I also thank the love of my life Mongezi Moses Phandliwe sincerely for his enormous support and guidance. In many ways, it takes a village to complete a dissertation. As a result, I thank my colleagues and study partners for travelling this journey with me. I also especially thank Kanya Faith Mofokeng for being there always when I needed her. Finally, I extend my special thanks to the Central University of Technology for the financial assistance they offered me throughout my study. ii | P a g e © Central University of Technology, Free State DEDICATION I dedicate this dissertation to my mother and little brother. iii | P a g e © Central University of Technology, Free State LIST OF ACRONYMS AND ABBREVIATIONS ACRONYM FULL WORDS CA Competitive Advantage CUT Central University of Technology ED Energy Drinks ESRC Economic and Social Research Council SM Social Media SMA Social Media Advertising SME Social Media Engagement OMT Office Management and Technology WOM Word-of-Mouth iv | P a g e © Central University of Technology, Free State TABLE OF CONTENTS DECLARATION ........................................................................................................ I ACKNOWLEDGEMENTS ......................................................................................... II DEDICATION ............................................................................................................ III LIST OF ACRONYMS ............................................................................................... V LIST OF FIGURES.................................................................................................... X LIST OF TABLES ..................................................................................................... XI ABSTRACT ............................................................................................................ XII CHAPTER 1 ............................................................................................................... 1 ORIENTATION TO THE STUDY ............................................................................... 1 1. INTRODUCTION ................................................................................................ 2 1.1. Definitions of key concepts .............................................................................. 3 1.2. Problem statement ........................................................................................... 4 1.3. Aim of the study ............................................................................................... 6 1.4. Main objective .................................................................................................. 6 1.4.1. Secondary objectives ................................................................................ 6 1.5. Main research question ................................................................................... 7 1.5.1. Subsidiary research questions .................................................................. 7 1.6. Summary of the methodology .......................................................................... 8 1.7. Significance of the study .................................................................................. 8 1.8. Outline of the study .......................................................................................... 9 1.9. Chapter summary ............................................................................................ 9 CHAPTER 2 ............................................................................................................. 11 SOCIAL MEDIA ADVERTISING, CONSUMER BRAND ......................................... 11 PREFERENCES AND DECISION MAKING ............................................................ 11 2. INTRODUCTION .............................................................................................. 12 2.1. An overview of social media and consumer-oriented engagement ................ 12 2.2. Definition of social media advertising ............................................................. 13 2.3. Dimensions of social media advertising ......................................................... 13 2.3.1. Online Communities ................................................................................ 13 2.3.2. Social interaction ..................................................................................... 14 2.3.3. Sharing of Content .................................................................................. 14 2.3.4. Accessibility ............................................................................................. 14 2.3.5. Credibility ................................................................................................ 14 v | P a g e © Central University of Technology, Free State 2.4. Platforms for promoting social media advertising .......................................... 15 2.4.1. Facebook ................................................................................................ 15 2.4.2. Twitter ..................................................................................................... 17 2.4.3. YouTube.................................................................................................. 17 2.5. The evolution of social media advertising ...................................................... 19 2.6. Definition of brand awareness ....................................................................... 20 2.7. Types of brand awareness ............................................................................ 21 2.8. The evolution of brand awareness ................................................................. 22 2.9. Students’ brand awareness ........................................................................... 23 2.10. Definition of social media brand awareness ................................................ 25 2.11. Students perceptions on social media brand awareness ............................. 26 2.12. Students’ social media awareness of monster energy drinks ...................... 27 2.13. Reasons for student consumption of monster energy .................................. 28 2.14. Social media and brand decision making .................................................... 29 2.15. Student perspectives on decision making about social media platforms ..... 30 2.16. Students perspectives on decision making about monster energy drinks .... 31 2.17. Advertisers’ experiences of social media platforms ..................................... 32 2.18. Advertisers’ perceptions on social media brand promotion .......................... 34 2.19. Definition of competitive advantage ............................................................. 34 2.19.1. Porter’s sustainable competitive advantage model ............................... 36 2.19.1.1. Resources and Capabilities ....................................................................................... 37 2.19.1.2. Cost Advantage and Differentiation Advantage ......................................................... 38 2.19.1.3. Value Creation ........................................................................................................... 39 2.20. Conceptual framework ................................................................................. 40 2.21. Chapter summary ........................................................................................ 41 CHAPTER 3 ............................................................................................................. 42 METHODOLOGY ..................................................................................................... 42 3. INTRODUCTION .............................................................................................
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