Working with Social Media in Japan in the Case of H&M, Ikea and Volvo Corporation

Master Degree Project in Marketing and Consumption

Working with Social Media in Japan In the case of H&M, Ikea and Volvo Corporation

Sarah Müller and Elin Simonsson

Supervisor: Johan Hagberg Master Degree Project No. 2015:109 Graduate School

Master Degree Project in Marketing and Consumption Müller & Simonsson (2015)

Working with Social Media in Japan - In the case of H&M, IKEA and Volvo Cars Corporation

Sarah Müller MsC in Marketing and Consumption at School of Business, Economics, and Law at University of Gothenburg

Elin Simonsson MsC in Marketing and Consumption at School of Business, Economics, and Law at University of Gothenburg

Abstract Social media is an evermore important tool for companies to utilize in marketing, as it no longer is a question of if, but how social media can be employed for communicating to current and potential customers. However, it is also a tool that holds its complexities, and one in which companies are resistant to use. Therefore it is of interest to investigate how in particular MNCs work with social media in a foreign market, as the marketing medium thus holds both opportunities and challenges, as well as cultural mechanisms and behavior affecting usage on local markets. The purpose of this study is to investigate social media usage of Swedish companies H&M, IKEA, and VCC in Japan, in order to develop a framework of how MNCs work with social media, as well as identify factors that affect how foreign companies work with social media on a local market. This was done through semi-structured interviews conducted in Japan with the three case companies, as well as interviews in Sweden. Further, we have introduced the PIE model as a framework for social media usage and concluded distinctive factors that influence presence of Swedish MNCs on the Japanese market including: reachability, applicability, popularity, and professionalism. Moreover, to create interest among users, the distinctive factors of commercial information, inspiration, tutorial, and competition effect utilization. Lastly, to enable conversation and engagement the distinctive factors of adaptability, sociability, and caution influence social media usage on the local market of Japan.

Keywords Social Media, Japan, Social Media Usage, Japanese Culture, H&M, IKEA, Volvo Car Corporation

Introduction with key stakeholders (Arora & Predmore, 2013); making adaptation and Social Media has become a growing and implementation of alternative marketing ever-more influential part of 21st century’s methods in social media and marketing (Berthon et al., 2012) marketing activities strategy overall essential, as both transcend and strategy (Goodrich & Mooij, 2014). into a new, dynamic and interconnecting Unlike traditional marketing international marketplace (Okazaki & communications where a high degree of Taylor, 2013). managerial control and value production is present however, social media allows a With introduction of the Internet and Web shift from corporate to consumer 2.0 (O'Reilly, 2007) communication has interaction, content creation as well as become immediate, caused time- and control (Mangold & Faulds, 2009; Okazaki national boundaries to blur as well as & Taylor, 2013; Kietzmann et al., 2011). business transparency hard to omit. Thus In many ways the advent of social media this virtual “many-to-many” has changed the way businesses interact communication medium (Fuchs, 2014) has

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caused high global accessibility and foreign direct investment in Asia is scalability through populous penetration; steadily growing (International Monetary creating aftermath of consumption and Fund, 2015), and through utilizing of interactivity upon both global, national and social media, traditional marketing local level. Thus, multinational practices need to be modified for best corporations (MNCs) may realize that a practice, continued economic prosperity once global marketing strategy can be within APAC (Kemp, 2014) as well as reinterpreted, altered and adopted to fit consideration to cultural implementation cultural needs and values of local markets. (Sheth, 2011; Berthon et al., 2012). Further, what commences in one market will spread instantaneously, resulting in A nation within APAC, being referred to need to drive global brand value coherence as a “top technology affluent” market with local methods of adaptation for (Cheok & Fernando, 2012; International enhanced level-of-fit (Berthon et al., Monetary Fund, 2015) with an Internet 2012). Thus, social media though being a penetration of near 80 percent (Kemp, global phenomenon (Goodrich & Mooij, 2014), as well as having similar economic 2014) indeed mirrors a country's cultural circumstances, literacy rates and overall values, technology level as well as technological infrastructure to that of the historical- and governmental structure West (Gong et al., 2014) is Japan. The during interpretation, usage and interaction nation has enjoyed economic growth since (Berthon et al., 2012). post-war society (Hughes, 2013), and through having met contemporary financial Unlike initial internet adoption centered in struggle, Japan is the third-largest North America and Western Europe, social economy globally (BBC News, 2015) after media has shown to have highest the US and China (CNN Money, 2015). penetration and awareness in present-day The nation possess high level of foreign Asia (Gong et al., 2014). 2013 revealed direct investment through MNCs’ presence consecutive growth within the Asia-Pacific (Kemp, 2014) and through being (APAC) region for both Internet, mobile, recognized as a “regional and global technologies and social media usage economic superpower” (Hughes, 2013) (Kemp, 2014); suggesting the “digital Japan acts as predominant example of divide”, acknowledged as inequality of “imitation-based growth” for other information and media technology between emerging APAC nations (Kim & Nelson, nations (Ali, 2011) is decreasing (Bertot et 2000). al., 2010) on a global scale (Kemp, 2014). Factors behind amplified growth of social Considerable trend differing from other media, in Asia (Gong et al., 2014), APAC nations, as well as Western Europe particularly in emerging markets, may and North America, however is usage and derive from motivation of increased social, penetration of social media that has not political and governmental transparency been established to the same extent. Social through open platforms (Bertot et al., media usage in Japan represents mere 17 2010; Abbott, 2012), as well as wish to percent compared to APAC average of 25 take part in economic and educational percent, Western Europe of 44 percent and aspects of Web 2.0 (Ali, 2011). E- North America of 56 percent (Kemp, 2014; commerce, global marketing facilitation as Kende, 2014); deriving from aspects of well as many-to-many benefit of reach online anonymity among Japanese (Fuchs, 2014) through social media has consumers (Davies & Ikeno, 2002). Japan enabled MNCs to compete past traditional is thus described through past research to barriers of trade (Ali, 2011). Thus, national largely differ in terms of norms and values and international MNCs influence and as well as view of society versus self

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(Suzuki & Takemura, 2013). Cultural Social media is admitting an ever- differences have also manifested increasing role, however, it is still a tool themselves in communication methods and that companies are averse to fully employ tone-of-voice, which can vary during (Kietzmann et al., 2011; Taprial & online interaction between nations; thus Kanwar, 2012) in conjunction with impacting the transversal of marketing traditional media and marketing activities methods from the global to the local (Acar, (Hanna et al., 2011). Some reasons include 2013) for MNCs acting in Japan. Online loss of managerial control, possible and social media behavior in Japan may damage of reputation through then be a prominent example of influence misperceptions, unabridged transparency of culture and other factors (Berthon et al., (Van Dijck, 2013) as well as faulty 2012) differing across global communities communication spreading fast to a (Gong et al., 2014), in which MNCs act globalized and instantly reactive market and coexist (Ray, 2014). (Woerdl et al., 2008). Thus company participation on social media is not free of Background challenges (Kaplan & Haenlein, 2010), as merely being present is not sufficient With globalization and through use of enough for interaction and increased social media, brands are emerging in new awareness within the digital sphere. contexts and communities (Tuten, 2008), Consumer engagement requires interesting thus raising interest in the development in and creative content, in order to catch but international marketing (Baack et al., also maintain attention and engagement 2013) and how this area is managed (Hanna et al., 2011), coupled with (Berthon et al., 2012). Through 21st discretion through sensitivity during century’s technological development, interaction with consumers (Thackeray et innovation is moving at a fast pace and al., 2008); conjointly placing emphasis on consumers are quick to adapt new means resources of labor, technology, and capital of online brand interaction (Hanna et al., during utilization (Venkatesh, 2015). 2011). Social media implementation is growing among top Fortune Global 100 Social media thereby encompasses both firms and others especially since 2011 opportunities and challenges (Kaplan & (Goodrich & Mooij, 2014), and marketing Haenlein, 2010) upon all national markets, managers subsequently no longer face and are influenced by infrastructural questions of if, but how social media enablement, governmental regulations as marketing can be applied and enhanced, in well as cultural belief systems (Berthon et order to boost business and sales in a al., 2012). Japan is as introduced above, an particular market, as well as overall brand intriguing nation of academic study, as perception and importance within the social media usage despite high level of global marketplace (Taprial & Kanwar, technology-based growth in both social, 2012). Through social media as a “free-to- governmental and business based use” communication platform (Woerdl et structures still shows penetration close to al., 2008) companies can interact within a mere 17 percent (Kemp, 2014). Lack of global community in which the digital governmental hindrance, present within medium encourages consumers to create other nations of APAC showing greater and co-create value and activity amongst share of social media usage (Kemp, 2014), brand platforms (Berthon et al., 2012), thus has further enabled not only fast expansion increasing the power of marketing of usage for portable devices, but also has influence, engagement and reach than ever created a platform for further development before (Hanna et al., 2011). within digital field and social media networks (Ito, 2005). Lessened social

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media activity in Japan compared to other regions may thus have other explanatory Thus the research question is as follows: factors, such as the nation's deeply embedded culture (Davies & Ikeno, 2002; What are the distinctive factors of how Rosenberger, 1994; Sugihara & Katsurada, Swedish MNCs work with social media in 2002); thus being of academic interest to Japan? gain greater insight within the field for international marketing and social media The purpose is thereby to investigate social strategy. Share of foreign MNCs within media usage of Swedish companies H&M, Japan has been elevated since mid 1990s, IKEA, and VCC in Japan, in order to allowing new norms, managerial education develop a framework of how MNCs work and practices to have been introduced with social media, as well as identify (Kushida et al., 2013), that may have effect factors that influence how foreign upon Japanese cognition and social media companies work with social media on a utilization. As social media has been a local market, in order to add to research growing and influential part of 21st within the social media field. Social media century’s (Berthon et al., 2012) global marketing, even though attracting greater marketing activities (Goodrich & Mooij, levels of attention (Kietzmann et al., 2011) 2014), foreign MNCs aspire social media has yet to become a highly researched usage for success in Japan as in other topic (Goodrich & Mooij, 2014), making markets of operation. Through identifying cross-national analysis for MNCs (Okazaki factors utilized within a low social media & Taylor, 2013) evermore significant. penetration market by MNCs, such as Thus, identifying academically distinctive Japan, current and aspiring MNCs may factors influencing social media usage in enhance utilization of social media tools foreign markets may be of high value for going forward. Swedish based MNCs when comprehending how cultural norms and One nation with high MNC presence is behavior mechanisms affect social media Sweden, which in relation has both usage in Japan. Localization of usage upon national and economic similarities to Japan foreign markets is thus of particular through having both high geographical and interest and contribution to academia, since socio-cultural distance, defined as what commences in one market will spread differences between home and host speedily, resulting in need for MNCs to national cultures (Holmstrom et al., 2006). drive global brand coherence with local Thus, Sweden and Japan portray similar methods of adaptation for social media aspects of technological, economical as (Berthon et al., 2012). The chosen well as educational aspects, all having companies enable connections to be drawn impact upon enablement of social media as well as further discussion regarding implementation, usage and spread (Berthon identified factors to be made for social et al., 2012). Therefore, three Swedish media usage upon chosen marketplace of MNC, namely H&M, IKEA and VCC are Japan. chosen as an example of MNCs in foreign countries, as the common basis of choice Theoretical Framework includes size and economic influence; each In order to understand how social media is included within the Fortune 500 companies used within the national market of Japan (Fortune 500, 2014), common country of by Swedish MNCs, the theoretical origin, targeting of end-consumers, as well discussion will include a brief literature as all having presence within the Japanese review, followed by discussion of social national market and on social media media as an interactive and engaging tool platforms. using the so-called PIE model. Lastly, a

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section regarding Japanese culture is added mass marketing” with increased for enhancement of discussion and individualization of message within and findings later on. for the many interest groups (Solis & Breakenridge, 2009). Social media then Social Media Literature blurs distinction between personal and Social media is among the most rapidly public media (Meikle & Young, 2012), expanding research areas of interest within through aspects of accessibility, speed-of- marketing journals (Schultz & Peltier, spread through exponentiation, voluntary 2013; Gong et al., 2014), and described as targeting by peer-to-peer transmission a shift from the commercially traditional (Woerdl et al., 2008), as well as and one-way promotional marketing measurable response-rates and credibility method, to a more ‘virtual’ and ‘social’ through transparency (Tuten, 2008). means of communicating business practices (Dann & Dann, 2011; Solis & Marketing communication on social media Breakenridge, 2009). With introduction of thus entails a vast area in which many the term Web 2.0 (O'Reilly, 2007), control factors need to be considered when has altered from the producer to the communicating brand message and consumer through cooperation and informational activities (Berthon et al., transparency with other users; individuals 2012), as communication rests upon are not only retrieving or ‘consuming’ awareness, information, generating information, but also ‘contributing’, attitudes, and affecting behavior (Delozier, ‘reviewing’, and ‘refining content’ 1976 in Wijaya, 2012). Social media is (Constantinides & Fountain, 2008; defined in this study as a two-way- Berthon, et al., 2012). Further co-value medium, in which communication not only creation is possible upon what is occurs between companies and consumers conceptualized as “hypermedia computer- but also directly between consumers-to- mediated environments” (CME's) when consumers (Mangold & Faulds, 2009), referring to the dependence upon proposing a vast, ever-altering and technological platforms, as these can strategically challenging area (Goodrich & consist of among others social network Mooij, 2014). Accordingly, social media is sites (SNS), virtual communities/worlds, an important tool for generating growth in creativity work-sharing sites, instant sales, return on investment, positive word- message chats, File Transfer Protocol of-mouth, or mouse (Sun et al., 2006) as (FTP) or e-mail when communicating well as brand knowledge (Kumar et al., during such interactive forms of marketing 2013). Further, customer involvement is (Fuchs, 2014; Dann & Dann, 2011, Chu & positively related to an increase in Kim, 2011; Brodie et al., 2007). Thus, the purchasing expenditure (Goh et al., 2013) Internet may be both a “market and a and participation by customers within medium” (Ngai, 2003), entangling social media content increases frequency relationships through exchange of ideas, of visits (Rishika et al., 2013). Therefore, products and services, often referred to as interaction on social media exceeds “democratization of media” (Tuten, 2008). traditional conversations through more Therefore, content distribution is powerful communication that spreads to a converging towards less distribution large amount of users (Wu et al., 2013; through corporation editors, and to a Tuten, 2008; Evans, 2010). greater extent through online users, underlining both participation, interaction Even though social media has been and power as defining key concepts increasingly researched (Schultz & Peltier, (Fuchs, 2014; Constantinides & Fountain, 2013; Gong et al., 2014), there are still 2008); when combining “personalized perspectives and angles yet to be addressed

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(Macnamara, 2010) within the topic of opportunities (Adamopoulos & Todri, national markets and social media (Gong et 2014). Further, in order to maintain a good al., 2014; Okazaki & Taylor, 2013). Thus, presence in social media five aspects can in this article social media usage of be added from the literature in this Swedish companies within national market application (Kaplan & Haenlein, 2010), Japan is of interest. In order to map out the firstly to choose which social media to use specific area chosen for this paper, we with care and secondly if there is no have derived the PIE model, in which the suitable option there is the possibility of abbreviations ‘presence’, ‘interest’ and developing an own social media platform. ‘engagement’ build upon each other. This, Thirdly activity alignment as well as through working abductively with existing fourthly media plan integration is central. literature within the field as well as Lastly it is important to let all employees’ findings, with basis in the hierarchy-of- have access to social media profiles, in effects model AIDA (Kotler, 2002), since which some have administrative business-to-consumer products constitute responsibility and others are time-to-time of marketing/advertising communication participants (Kaplan & Haenlein, 2010). that need to incorporate Internet technologies within the promotion mix ‘Interest’ (Venkatesh, 2015). As follows, the AIDA ‘Interest’ refers to having content on social model is not used from the traditional media that sparks interest among users perspective (Strong, 1925) or through (Kaplan & Haenlein, 2010) as well as alterations made by later researchers content that encourages participation and (Robertson, 1971; Preston, 1982 in Barry can rouse conversation (Haydon, 2013; & Howard, 1990) or applied to how the Taprial & Kanwar, 2012). Content is a way area of advertising entails today (Wijaya, to interact through information about the 2012), but with the thought of a sequence brand or product through visuals that can from the perspective of engaging social reach many people, but also it is an media users with a company’s content as a opportunity to listen and understand more form of advertising and ultimately increase about customer interests and preferences brand awareness and in turn sales of (Enginkaya & Yilmaz, 2014; Coles, 2015). Swedish companies in the Japanese Ultimately, we argue that content drives market. ‘interest’ in social media and in order to spread marketing communication as well The PIE model as to boost sales and brand image it needs The PIE model was developed by the to speak to the audience. In order to take abductive research approach to existing advantage of the possibility to engage literature and our findings thus constituting people on social media, Haydon (2013) has a framework of how to work with social several suggestions for how this can be media - and in extension - what successful done; a company should look past content social media activities should include. In that is simply informative and instead take order to enhance our model we have added advantage of the viral effect that can occur relevant literature to the model that further on social media through for example help define distinctive areas. posting stories, tips, or insights of for instance products as opposed to ‘Presence’ promotional posts, since more content ‘Presence’ concerns to be present on the richness can generate enhanced attention. different social media in order to enable Further, extending discounts, special offers communication with potential fans and or giveaways on social media should be users, in order to draw advantage of the utilized (Haydon, 2013) since offering a effectiveness of social media for business high perceived value that requires little

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effort from the customers’ part on social while proper communication can only be media can have positive widespread provided through having ‘presence’. effects. The essential part is thus to spread Overall, the model we take forth to the interesting creative content while truly coming section involves ‘presence’ understanding what customers are ‘interest’ as well as ‘engagement; the PIE interested in (Haydon, 2013). model. However, in order to convey correct understanding of the distinctive ‘Engagement’ factors found, social media upon local The term ‘engagement’ is central in order markets is highly influenced by to reach out to users and spread brand mechanisms and behaviors deriving from awareness that increases preference for a culture (Berthon et al., 2012), which is brand and in turn sales. Kaplan & Haenlein mentioned in the following section. (2010) propose a five point framework concerning how a company should be Japanese Culture social when interacting with its consumers In order to add to the discussion of the and it includes being active (Kaplan & findings, culture and particularly Japanese Haenlein, 2010; Stavros et al., 2013), as in national culture will be put forth, as it is an building a relationship through an open essential influence to social media usage in conversation and being interesting (Kaplan Japan; thus comprising a dimension that is & Haenlein, 2010; Enginkaya & Yilmaz, discussed in relation to the findings. 2014), through posting content that consumers find enjoyable and valuable. National culture, norms and values, has Further, being humble through direct influence upon corresponding understanding how to participate in a behavior, perception of meaning, personal conversation is of importance as well as disposition, beliefs and character (Samuel being ‘unprofessional’. In social media, Craig & Douglas, 2006; Luna & Forquer being ‘over-professional’ can thus give the Gupta, 2001; Steenkamp, 2001; Carter, wrong connotations, and it important to set 2001; Yaprak, 2008; Ricks, 1993), thus the right tone similar to how users acting as a framework for construction of communicate in order to give an as natural the self, and well as the self in relation to impression as possible. Moreover also others (Markus & Kitayama, 1991; expressed by Sherman & Smith (2013), Hofstede, 1980; Hofstede, 1991; Schwartz, being honest is the most central part, since 1994; Schwartz, 1997). Consideration of users today are most sophisticated when it impact in regards to national culture for comes to Internet technology and MNCs’ acting in foreign markets will thus misleading information will come forth. influence positive or negative outcome of (Kaplan & Haenlein, 2010) Therefore, we investment (Ricks, 1993), perception of argue that thinking in terms of the five risk (Doney et al., 1998) as well as work- point framework is of great importance in related values applicable within ‘engagement’, since companies need to organizations (Hofstede, 1980; 1991). establish conversations with consumers, in National language is found to act as tool order to give a good impression on social for social interpretation, tone-of-voice as media (Sashi, 2012), which in turn can well as belonging (Cleveland et al., 2015), either benefit or harm a brand (Schultz & suggesting culturally embedded values to Peltier, 2013). be addressed through consideration upon foreign markets (Yaprak, 2008). Thinking in terms of the PIE model is of importance, as in order to have Social theory and application of Japanese ‘engagement’ by users; a company has to culture in society (Clammer, 1995), ensure ‘interest’ through creative content, suggest difficulty when theorizing Japanese way of living without including

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cultural, as well as historical aspects Vertical hierarchy is present, and during (Markus & Kitayama, 1991), but the interaction members of a group, most society is instead stated to be bundled by important aspect is to determine status and these contrasts (Carter, 2001; Rosenberger, level of formality for further action, 1994). In the following paragraph politeness and traits of conversation. culturally defining ‘way of thinking and (Davies & Ikeno, 2002; Edman, 2007) being’ within Japanese society (Davies & within both an online and offline setting. Ikeno, 2002; Edman, 2007; Carter, 2001; Rosenberger, 1994; Sugihara & Katsurada, What is denoted as beauty, fashion or 2002; Cheok & Fernando, 2012; Ohkura & perception of common-term ‘cute’ Komatsu, 2013) will be presented, that (‘kawaii’ in Japanese) has shifted over the may impact and influence social media years derived from historic and religious application and usage. influence (Cheok & Fernando, 2012; Carter, 2001), denoting the nation having The Japanese experience of self-construct post WWII gone from Chinese and Korean is based upon interdependence with others; influence to increased influence of a through finding meaning in behavioral Western style of living (Sugihara & patterns, fitting in through interpersonal Katsurada, 2002; Davies & Ikeno, 2002). relationships, as well as being of relevance Though Western styles are popular in to society (Markus & Kitayama, 1991). contemporary Japan, especially amongst The mere word ‘self’ in Japanese bears younger generations, there is national definition of “one's share of the shared life beauty and pride for Japanese traditions space” (Hamaguchi, 1985 through Markus and historical meaning that is growing in & Kitayama, 1991), and for fear of turning importance (Davies & Ikeno, 2002; against a group, whether in a company, Ohkura & Komatsu, 2013). Beauty is family or society at large, Japanese according to Japanese tradition a subjective individuals will conform with preference view in the eye of the beholder (Carter, of anonymity. This results in inability to 2001) to be found everywhere (Davies & denounce or reprimand openly, and typical Ikeno, 2002), in which globalization and ‘yes or no’ answers are avoided in order to increased outer influence has played a maintain harmony, with diversion of prominent role. During the 21st century answer or sentences including more than however studies have shown increasing just one intended meaning; so-called influence of the Japanese subculture ‘ambiguous’ answers as result. Thereby ‘kawaii’ upon global fashion, animation ambiguity in speech, and limited choice of and entertainment on a larger scale (Cheok words may protect both speaker as well as & Fernando, 2012; Ohkura & Komatsu, remaining group from insult, as 2013). Japanese ‘cuteness’ within oversimplifying or explaining can induce interactive systems and social media have feeling of un-knowledgeability, disrespect, thus displayed results of greater interaction or impoliteness, as well as lack of and co-creation output in Japanese and capability to sense the thoughts or feeling foreign markets, suggesting the nation to of others (Davies & Ikeno, be on the forefront for increase of design, 2002). Elimination of risk is an important user-friendliness and interactivity within aspect to interdependence with others, as a social media systems (Cheok & Fernando, Japanese will prioritize outer control 2012) through utilization of cultural (Markus & Kitayama, 1991) and loyalty influence. (Sugihara & Katsurada, 2002) with silence, ambiguity (Davies & Ikeno, 2002) rather In conclusion, the model that is taken than attempting directly at business henceforth through the discussion of opportunities and earnings (Edman, 2007). findings, in context of social media usage

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in Japan by Swedish companies involves; multinational company that designs and ‘presence’, ‘interest’, and ‘engagement’, sells ready for assembling furniture, namely the PIE model. Further, Japanese appliances and home accessories (IKEA culture as an area affecting usage is taken Sweden, 2015). Volvo Car Corporation into consideration when analyzing social (VCC) is a Swedish premium automobile media in Japan. manufacturer operating globally (VCC Sweden, 2015). Therefore, choosing these Method three cases can enable comparisons and conclusions to be drawn, thus comprising Qualitative Research Method of corporate brands that share similarities Since this study has the purpose to identify of corporate culture and common distinctive factors of how Swedish MNCs ‘Swedishness’ (Azar et al., 2011) for the work with social media in Japan, a research. qualitative research method was chosen to fulfill the aim. A qualitative approach Data Collection (Eriksson & Kovalainen, 2008) was found Semi-structured interviews (Bryman & appropriate, as this study bears an Bell, 2011) are utilized, as relatively exploratory manner, with focus on specific themes within the area of social interpretation and understanding rather media are studied and this method allows a than statistical analysis of quantitative greater degree of freedom in respondent's research approaches. In order to gain ability to answer. However, in order to deeper understanding interviews were attain answers that still connect to the area conducted, since the topic of interest is of interest, an interview guide was rather new, and thus helps to enhance developed in regards to literature within understanding of the area (Yin, 2003). the social media. The process of Moreover, the research approach in this developing a relevant interview guide was study is based on the abductive model that thus followed through the step-by-step allows to reassess the theoretical points (Bryman & Bell, 2011) below: framework after empirical findings are gathered, which goes in line with the 1. General Research Area exploratory nature of this study as it 2. Specific Research Questions provides an iterative process (Eriksson & 3. Interview Topics Kovalainen, 2008). This was utilized 4. Formulate Interview Questions through basing an initial framework on 5. Review/Revise Interview Questions theories and articles within marketing and 6. Pilot Guide social media in general for formulating the 7. Identify Novel Issues interview guide. Thereafter research was 8. Revise Interview Questions conducted, and later the framework was 9. Finalize Guide reassessed and relevant academic literature found to enable more interesting and deep The chosen interview-technique enabled analysis. questions to be asked by the researchers not previously stated in the interview For this study, H&M, IKEA and VCC guide, but related to the answers as were chosen as case companies, since these ‘follow-up questions’ for the respondents. MNCs each operate on foreign markets, This thus provided enhancement to the and specifically also Japan. H&M, being a richness of findings, as the aim is to Swedish multinational retail-clothing encourage dialogue in which conversation company, offers fast fashion for men, flows and the interviewees perceive women, teenagers as well as children themselves as experts within the specific (H&M Sweden, 2015). IKEA is a Swedish area (Thompson et al., 1989).

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The semi-structured interviews were degree of focus upon the next coming conducted with members of staff from both question, one of the researchers main task marketing and social media departments was to take notes, while the other was in within H&M, IKEA and VCC; three in charge of the interview and follow-up Sweden, and three in Japan during the first questions. This enabled the interviewee to half of the research process. Interviews focus more upon one person, and possibly were firstly conducted in Sweden to relax to a greater extent, noticing after a broaden researchers’ understanding of while an order of routine. Further, to social media strategy in general. A eliminate risk of speaking at the same time, Designer from H&M Sweden was the interviewers discreetly signaled each interviewed for about 40 minutes prior to other that a follow-up question was the visit and interview in Japan; a Social required. The flexibility of structure and Media Manager and a Project Leader from the order of questions differed in the six Inter IKEA Systems were interviewed conducted interviews, and permitted to through Skype about 55 minutes after the explore the area of social media in general, data collection in Japan; and Vice while keeping focus upon themes President Global Marketing from VCC particularly chosen within the market of was interviewed approximately 60 minutes Japan; thus enhancing the richness of prior to the conducted interview in Japan at information for interpretation and further VCC headquarters in Torslanda. The analysis. interviews in Japan were held with a Social Media Specialist from the Marketing Data Analysis Department at H&M by visiting their The collection of empirical data as well as headquarters in Shibuya, Tokyo and took its analysis is central within qualitative about 60 minutes; the Senior Web research, since it aims to provide an Specialist Marketing from IKEA was understanding of a specific topic and is interviewed by visiting their headquarters thereby sensitive (Eriksson & Kovalainen, in Funabashi, Tokyo and took 2008). After the interviews, the recordings approximately 80 minutes; and the from an iPhone were listened to as well as Marketing Director from VCC was transcribed in English, followed by first interviewed by visiting their headquarters attempts to interpret and code the given in Shibakoen, Tokyo and took about 60 answers, enabling possibility for reducing minutes. data, as well as extracting relevant statements that may go in line with aspects After opening questions were asked during of theoretical framework. In this manner the initial phase of the interview, the the analysis of data was divided into researchers thereafter let the conversation different factors within the theoretical flow with help of the interview guide to framework and discussion; namely reconnect to certain aspects of interest for ‘presence’, ‘interest’ and ‘engagement’, the study. Thus during the interview, the and results are presented in accordance to researchers advanced as well as upheld the commonly shared meaning and dialogue of topic through ‘what’ and ‘how’ interpretations made through statements by questions to gain deeper meaning, by the respondents. This process, as well as which ‘why’ questions were avoided. This combining findings and discussion, was since ‘why’ questions could make the decided upon by the researchers due to interviewees rationalize and interpret their enablement of coding according to own answers, which is the researcher's highlighted components, as well as responsibility at a later stage of the providing an interesting flow of discussion research process. In order to minimize risk and in turn analysis for the readers of ‘missing’ answers, or obtaining to high throughout the thesis.

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order to verify analysis in the study. Six Research Quality interviews were made to collect empirical When conducting qualitative research it is data, which may seem un-efficient, of importance to ensure quality or however, it provides sufficient amount of ‘goodness’ of the research, which naturally data as social media experts in the should be ensured while performing the respective companies were interviewed, study as well. One aspect to ensure quality which enabled the researchers to answer is the aspect of transparency, which can the research question through interviewees demonstrate strengths and weaknesses of firsthand experience within the area. the research thus enabling ‘goodness’ throughout the study. Further, Conformability (Eriksson & Kovalainen, trustworthiness of a qualitative method, 2008) concerns the notion of logically including dependability, transferability, extruding interpretations from data and credibility, and conformability, are writing out these in a simplified manner, measures that particularly assess quality which implies imagination not to be (Eriksson & Kovalainen, 2008). present when establishing interpretation; in order to fulfill this aspect. Also, direct Dependability concerns responsibility of quotes from the interviews are followed by presenting the information to the reader in direct analysis that ensures understanding a logically documented way (Eriksson & for the readers. Kovalainen, 2008). In this study, the different choices for the presentation are Findings and Discussion argued for in the beginning of each chapter, in order to clarify an In this section our findings are presented understanding for the reader and show and discussed through the PIE model. upon the process that was chosen from the Social media usage of H&M, IKEA and researcher’s perspective. Therefore, VCC Japan are thus described and dependability has been assured, since this analyzed on the basis of ‘presence’, was made with appropriate documentation ‘interest’ and ‘engagement’ in order to as well as knowledge of prior research that identify distinctive factors that were found was correctly referred to. during the coding of the findings from the interviews conducted in Japan, and thus Transferability concerns the researcher’s presented when applicable in the different responsibility to provide a degree of cases. similarity towards prior research of the area, in order to connect new research with ‘Presence’ previous results (Eriksson & Kovalainen, ‘Presence’ concerns being present on the 2008). This is fulfilled as this study is different social media in order to enable conducted to enhance understanding communication with users and potential regarding social media usage and through users (Adamopoulos & Todri, 2014). Thus this add to the general research area as the distinctive factors found were such. The theoretical framework is based reachability, applicability, popularity, and on previous research within the area in professionalism. order to put the findings of this study into the context of social media usage and Reachability thereby this aspect also is assured. Reachability concerns having ‘presence’ on social media, as ultimately, the aim is to Credibility (Eriksson & Kovalainen, 2008) reach fans and potential followers. Further, concerns to assure that the researchers are this factor is also influenced by the work of familiar with the topic of the research area employees to be active on social media in as well as are able to provide findings in

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order to reach out to the audience (Kaplan VCC started using social media about three & Haenlein, 2010). to four years ago, since “we can’t ignore social media as a marketing tool … as H&M started using social media five years Facebook is very popular in Japan” (VCC ago, in 2010 when “Twitter and Facebook Japan, 2015) in order to reach current was really huge in Japan” (H&M Japan, Volvo owners for retention and loyalty. 2015) by reaching its customers and Further, VCC “is not strong enough to potential customers through these two conquer the users” (VCC Japan), thereby media platforms; “as it is the first voice to we can identify that reaching consumers the consumer”, therefore “we have to do through being present on social media is it” (H&M Japan) in order to reach social considered important even if the extent media users. Further, the LINE application might be limited. Further, social media is is utilized by H&M since one year, being a handled by a marketing bureau in media with high potential consumer reach connection to VCC marketing department through provision of popular sticker packs in Japan, thus also comprising of a solid that create a “huge response because now responsibility division (Kaplan & we have 5 million friends on LINE … we Haenlein, 2010) in order to utilize social increased about 3 million friends” (H&M media to reach consumers. Japan). Thereby we identify a vast importance of especially LINE for H&M Thus we identify that reachability is a in this case, as securing presence upon factor that is important when having LINE elevates the number of followers. ‘presence’ for all three companies, since Further, one full-time social media social media is acknowledged as a tool to specialist is responsible for the social reach many users, as well as elevate media utilization for H&M, Japan, MNCs’ presence within the online field. contradicting to the suggestion of having time-to-time participants, as proposed by Applicability Kaplan & Haenlein (2010); thus The above concerns choosing social media potentially resulting in limiting human and with care and with regards to suitability to monetary resources during H&M’s current a company’s business and if there is no ‘presence’ on social media platforms. applicable one there is the possibility of developing an own platform. Further, this IKEA began utilizing social media three to connects to activity alignment and media four years ago, as “people started using plan integration possibilities, as the type of social media in Japan, it got bigger and media can ensure aligned and integrated people started checking in (to the stores) presence on social media (Kaplan & by utilizing Facebook“ (IKEA Japan, Haenlein, 2010). 2015) thus IKEA found that social media can “reach people easier … and the stores We identified that H&M utilizes the fast- can utilize this to connect to consumers” changing social media landscape to have (IKEA Japan). Further, IKEA uses Twitter presence where the consumers are at the through a ‘Ask Anna’ function, as part of moment, as “meeting consumers where their customer center to be reachable for they are” (H&M Japan) is the applicable questions from consumers on this media. use of social media for the brand, however Thus IKEA Japan points to the importance limiting the choice of social media with of Facebook in this case to reach care (Kaplan & Haenlein, 2010). H&M consumers with a social media team in uses primarily Twitter, as it is “kind of which one specialist has the overall free” (H&M Japan) and thereby fashion responsibility, thus having a efficient content is widely shared due to the ‘presence’ as stated in the PIE model. anonymity of this social media, as “Japanese people tend to be shy … on

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Facebook where names are mentioned” Kaplan & Haenlein (2010) this may entail (H&M Japan); thus directly relating to most possible value for end-users and elimination of risk (Markus & Kitayama, social media consumers thus ensuring 1991) through silence and ambiguity alignment and integration to a great extent. (Davies & Ikeno, 2002) during exposure of identity (Sugihara & Katsurada, 2002). We Hence we identify that applicability is observe that Twitter is the applicable dependent on where a company can apply choice of social media for H&M Japan, a large amount of social media considering also the culturally related communication, in which consideration is aspects, as being ‘present’ enables made towards applicability to the local alignment and integration with social market and brand values; thereby affecting media users. the choice of media in order to align and integrate their presence. IKEA has carefully chosen the social media best applicable for their business Popularity (Kaplan & Haenlein, 2010) within the This factor can be said to derive from the Japanese market; thus as H&M acting with ever-changing and vast social media consideration to national culture (Ricks, landscape in which many different social 1993); as well as contemplation of being a media emerge thus affecting presence of Swedish based brand in a foreign market; both MNCs and users (Goodrich & Mooij, thus “foreign brands need to make an effort 2014). and give an aspirational image” (IKEA Japan). Facebook has been chosen, as “it is This can be found for one of the cases, as seriously talking about topics” (IKEA for H&M Japan the choice of social media Japan) thus comprising of a social media usage is done with consideration to where the company can to be ‘present’ and consumer trends and “always trying assure media plan alignment and something new, because everyone (the integration that is important for, precisely, consumers) love that” (H&M Japan); applicability of presence (Kaplan & making choice of Twitter relevant as it Haenlein, 2010). may fulfill the need for being “hot and trendy” (H&M Japan). Further, LINE has VCC uses Facebook, as the most proven a significant social media that is applicable media for “owner retention and “very new and hot right now … because loyalty” (VCC Japan), and further Twitter everyone loves it” (H&M Japan), as for is refrained from active utilization, as it is H&M “always keeping an eye on perceived not to entail their target competition, on what they are doing” customers. Further, VCC Japan states that (H&M Japan) is central in order to stay LINE is a social media that their ahead. Thus media plan integration competition is using, however, this tool is (Kaplan & Haenlein, 2010) can be not applied in their marketing strategy due observed when having presence in order to to the expenses of use “being astronomic in maximize the potential within social media relation to size of (VCC’s) market share in channels. Japan as nation has been Japan” (VCC Japan). VCC Japan however sensitive to outer- and national influence, has developed their own platform named consumer and technological trends “My Volvo”, which is seen more valuable (Sugihara & Katsurada, 2002; Davies & and applicable for the owners by providing Ikeno, 2002; Cheok & Fernando, 2012), “direct services and warranty”, which we making choice of media with consideration identify manifests aspects of solid to popularity evermore essential in order to presence. By use of a own and highly- create positive word-of-mouth, or mouse developed platform, as proposed by (Sun et al., 2006) and brand knowledge

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(Kumar et al., 2013) in order to stay ahead that are deeply embedded also in social of competition (Goodrich & Mooij, 2014). media usage, hence affecting presence through the need of MNCs to convey a Therefore we identify that popularity is a certain set of connotations with regards to factor that comes as a result of the ever- formality and status. changing social media landscape in which pursuing latest trends upon a national ‘Interest’ market for consumer recognition is of ‘Interest’ concerns having creative content importance for having ‘presence’. that speaks to the interest and preferences of the users thus sparking interest through Professionalism understanding consumer interests and The need for professional ‘presence’ can preferences (Coles, 2015). Thus the be said to derive from the national culture distinctive factors found in regards to of Japan, as it is of importance to convey a content were commercial information, certain set of Japanese “thinking and inspiration, tutorial, and competition. being” within society (Davies & Ikeno, 2002) and thus this transcends into social Commercial Information media utilization (Berthon et al., 2012). Social media communication with the aim to boost sales and brand image thus This can be found for one of the cases, as comprising of content that is simply IKEA Japan utilizes presence on informative (Haydon, 2013), composes of Facebook, as “we still have to be aware this factor. For all three case companies in that people can react to whatever we Japan social media is used for commercial communicate … that we can be destroying purposes that can raise interest among our brand” (IKEA Japan) and Facebook is consumers and underlying commercial seen as a “professional and serious” (IKEA intentions (Ngai, 2003; Sun et al., 2006; Japan) social media “where there is the Goh et al., 2013) is naturally common chance to communicate well” (IKEA feature of consecutive factors presented Japan), since potential and/or current below. customers are posting and commenting under genuine profile details. Thus, in Firstly, H&M Japan addresses that accordance to Japanese culture, consumers commerce “is a central topic where we through personal accounts, will refrain state sales and discounts, pricing as well as from open complaint, explanation or seasonal campaigns”. IKEA Japan posts potential insult in order to maintain seasonal information in line with the harmony within the greater society (Davies calendar year such as around April 1st, & Ikeno, 2002; Edman, 2007). Thus, IKEA when a new fiscal year in Japan Japan states that Twitter is seen as “very commences, and consumers may reallocate different” (IKEA Japan) using anonymous both housing and/or business options. accounts, as opposed to Facebook, since “it Also, sustainability and charity topics are is an everyday media and people say communicated in order to inform and raise whatever” (IKEA Japan). We thereby interest for the brand. Further, department observe that, for IKEA Japan, choosing messages are also communicated on social social media with care (Kaplan & media, thus communicating enhanced Haenlein, 2010) is of great importance, as information of a particular line of home opposed to the other two companies, as appliances or choice of interior design, level of formality and status are central where beauty and fashion is seen as (Davies & Ikeno, 2002; Edman, 2007). important (Cheok & Fernando, 2012; Carter, 2001) in close conjunction with Thereby we identify that professionalism “high functionality of use” (IKEA Japan). as a factor derives from cultural aspects

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VCC Japan encourages consumer loyalty through touching upon the subculture of by providing current owners with global ‘kawaii’, ‘cute’ (Cheok & Fernando, brand-related information as well as 2012). Further, H&M Japan shares localized content for nationally distributed seasonal topics such as White Day, a local models through Facebook at least once a answer to Valentine’s Day, when men week. VCC Japan uses ‘My Volvo’ as an return gifts to women, thereby H&M Japan additional platform communicating with incorporates seasonal balance of their owners for personalized service, inspiration in their content for shoppers to dealer information and after-sales, further buy gifts at their stores. having information on other media of their choice. Thus, the companies post content IKEA Japan inspires through content such that is not seen to raise the ‘interest’ as ‘Behind IKEA’ stories with employees, overall, as Haydon (2013) states, however, events held at IKEA stores in Japan such such information may be targeting a as family sleep-overs covered on TV and certain group of consumers, as well as social media, language and cooking being a natural part of firms commercial courses. Thus IKEA Japan promotes the communication. brand more as an experience and as an inspiring brand that can spark further Therefore we identify that commercial interest among Japanese consumers information is a central part when working beyond being a ‘furniture selling with content on social media, as it is part company’. Japanese and Swedish holidays of marketing communication overall, and as well as Scandinavian food is thereby much needed for the companies. furthermore posted with strong emphasis, as “Japanese people share a strong interest Inspiration and love for food” (IKEA Japan), which Inspiration connects to the viral effect that they openly share through ‘Foodies’ a form can be taken advantage of when working of food images. Inspiring content goes in with social media and thereby posts line with Japanese affection for fashion content that can generate attention and beauty, using ‘cute’ imagery related to (Haydon, 2013) and entice conversation the so-called subculture of ‘kawaii’ (Taprial & Kanwar, 2012). Further, brand (Ohkura & Komatsu, 2013) in order to and product visuals comprise of content further enhance consumer interest (Kaplan that can be used for speaking to the & Haenlein, 2010). audience (Coles, 2015). VCC Japan posts marketing campaigns on H&M Japan incorporates inspiration in social media in accordance to print online content through sneak-peaks as well advertising in fashion magazines featuring as clothing collage imagery “that get more a popular blogger used for brand likes and favorites since it shows many promotion, as inspiring story content rather kind of visuals” (H&M Japan). Further than using direct commercial messages. content includes designer collaborations, Further there is possibility for store openings and special events “that owners/social media users to post content enhances the brand through being upon the official VCC Japan Facebook exclusive and high fashion” (H&M Japan). page, however, this is not utilized by Visual content is localized to Japanese consumers, and further not encouraged by models in reaction to Japanese women the Japanese social media admins. Also, “having trouble identifying with only “we (VCC) would like to be very Swedish western models” (H&M Japan), as well as as far as we can, because we are Swedish mixing Japanese and English words or brand” (VCC Japan), thereby raising expressions to enhance rate of attention interest through utilizing such imagery. We and “trendiness” (H&M Japan) of the posts

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observe that inspiring content on social not to ‘lose’ face in public. This goes in media in Japan is much in coherence with line with the PIE model through raising consumer’s interests (Coles, 2015), being interest upon local preferences (Coles, relevant in relation to local holidays, 2015) within chosen national market. preferences as well as utilizing images and communication in regards to cultural Thus we identify that tutorial is content acceptance, preference of anonymity rich in information, but also touches upon (VCC, 2015; Davies & Ikeno, 2002) and the cultural aspect of wanting to act in tone-of-voice (Yaprak, 2008; Cleveland et accordance to the “‘way of thinking and al., 2015). being’ within Japanese society.

Hence we identify that localized content Competition comprises of inspiration for users in Japan Having high perceived value, through through visuals as well as topics of interest competition requires little effort from the that can communicate their respective user's part and thus being able to spark brand and/or origin. Further localized tone interest (Haydon, 2013), as it is central to of voice and cultural traits found to be understand what consumers may be inspiring of the users are essential to interested in (Coles, 2015). include as content. This could be found for the case of H&M Tutorial Japan; as competitions of various forms The above concerns taking advantage of were well received. Described viral effects that can occur when using competitions could include posting on social media through posting attention Twitter through a ‘tweet’ with a hashtag in generating content, such as stories and order to receive an exclusive product, and advice (Haydon, 2013). Further aspects of also posting “selfie competitions” (H&M culture, through wanting to ‘fit in’ through Japan) in order to win tickets for designer interpersonal relationships with others and collaboration releases, since this is a society (Markus & Kitayama, 1991) may “really fun and great” (H&M Japan) way influence enhanced attention for tutorial- to raise interest. Thereby offering high- based content. perceived value, as proposed by Haydon (2013), comprises of content in order to This factor could be found in two of the raise interest on social media in Japan. cases, as a specific topic that raises interest upon social media are tutorials in the form Therefore we identify that competition is a of visuals and short videos, by H&M Japan factor that can spark interest among users and IKEA Japan. H&M Japan utilizes and thus comprise of a important tool for ‘how to’ tutorials for makeup, style social media usage. coordination, and “selfie advice” (H&M Japan), whereas IKEA Japan uses videos ‘Engagement’ for interior decoration, consultation, as ‘Engagement’ concerns engaging with well as images for assembly support. social media users (Stavros et al., 2013). Comprising of a specific interests that The following distinctive factors found touches upon this ‘how to’, and thus include adaptability, sociability, and conformance to society (Markus & caution. Kitayama, 1991; Davies & Ikeno, 2002; Adaptability Edman, 2007; Sugihara & Katsurada, Adaptability refers to engagement through 2002) beauty ideals (Carter, 2001), and being interesting, being “unprofessional” wanting to look ‘cute’ (Cheok & Fernando, as well as being humble, as it is of 2012; Ohkura & Komatsu, 2013), tutorials importance to set the “right tone” are important aspects aiding individuals

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(Cleveland et al., 2015) during conversation the conversation with consumers through and adapting communication to the users being humble (Kaplan & Haenlein, 2010), (Kaplan & Haenlein, 2010) in foreign as appropriate tone when communicating markets (Yaprak, 2008). elevates engagement (Cleveland et al., 2015). H&M Japan states that adapting the conversation creates positive reaction VCC Japan explains that engagement when engaging with users, as “H&M topics, which are posted, are related to (global) does not use ‘emoji’ due to market demand of for instance smaller cars guidelines, but we are in Japan so we have and “around 40% of Volvo market share to localize and sometimes use ‘emoji’” sales include the V40 (car model), making (H&M Japan). Thereby H&M Japan has almost all assets posted related to the V40” identified tendencies that consumers enjoy (VCC Japan). Therefore, we observe that when the company adapts to their way of adaption to relevance for Japanese communicating (Cheok & Fernando, 2012; consumers is made, when displaying Ohkura & Komatsu, 2013), since consideration to what is interesting for “Japanese people love these kind of things, further engagement (Kaplan & Haenlein, cute things, so I am trying to use” (H&M 2010). Japan), thereby targeting specific customers by being ‘interesting’ and As follows we identify that adaptability maintaining a somewhat ‘unprofessional’ when engaging is important in order to stance (Kaplan & Haenlein, 2010). Also, communicate using the right tone of voice H&M Japan has launched a sticker pack on within conversations. In order to be LINE exclusively for Japan that has proven perceived as a member of the social media popular among consumers; as “it is a platform, localized adaptations and correct Japanese trend, LINE is for everyone, … expressions with regards to local culture is every company has LINE” (H&M Japan), thus considered by the MNCs. thus comprising of a too important social media to ignore. Further, the time of Sociability posting content includes mornings and/or The indicated concerns being active when late night posts, with regards to commute engaging with users, but also touches upon hours, in order to speak to customers, thus the being humble and honest; as sociability H&M Japan appears to be active, as with regards to Japanese ideals of proposed by Kaplan & Haenlein (2010) maintaining harmony and societal when engaging with customers. acceptance (Davies & Ikeno, 2002) is of importance when communicating as a IKEA Japan has succeeded in adapting to MNC (Kaplan & Haenlein, 2010) in local local customs such as national holidays as markets (Samuel Craig & Douglas, 2006; well as utilizing “correct expressions” Luna & Forquer Gupta, 2001; Steenkamp, (IKEA Japan) regarding for example how 2001). to say ‘Happy New Years’ in the appropriate manner. IKEA Japan states In order to engage with customers, H&M that expressing themselves correctly upon Japan utilizes Twitter primarily by national holidays derives positive response commenting on posts, as well as searching and comments, as Japanese people tend to for posts by utilizing the “hashtag-search”, further respect a foreign company aspiring in order to reply customers that have adaption to local customs. This in turn thus tagged the company; “I may write ‘thank elevates brand image as “Japanese you’ or similar” (H&M Japan). Further, company tries to understand us (the concerning honesty (Kaplan & Haenlein, consumers)” (IKEA Japan), when adapting 2010), H&M Japan answers to complaints as well as reaches out to internal

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‘Customer Service’ in order to solve H&M Japan, however, takes a distant problems that are openly posted within the standpoint when engaging with consumers social media platform, thereby also within certain topics such as apparel touching upon the ‘being humble’ aspect regulations as “sometimes they are talking (Kaplan & Haenlein, 2010) through about for example fake fur, you know transparency of interaction. Thus, we can about animals” (H&M Japan), proving the identify that H&M Japan engages in only instance we could observe where the conversation, making the brand perceived company refrains from the proposed as one of the users through socialization framework of the PIE model. This may openly upon social media. derive from cultural aspects of inability to denounce or reprimand openly, as well as VCC Japan engages with all posts made potentially wanting to protect both speaker upon the mentioned social media platform as well as remaining group (of social Facebook, as “if no one replies you will media users) from insult (Davies & Ikeno, feel lonely” (VCC Japan), thereby 2002) and elimination of risk (Markus & engagement occurs in accordance with the Kitayama, 1991; Edman, 2007). proposed PIE model in the instances posts are made. Further, other aspects of IKEA Japan does not engage with its importance for ‘engagement’ within the consumers through replying or PIE model are less applicable for VCC commenting to ‘fan’ posts, for fear of users Japan, apart from Facebook, since their being “left out and not receiving attention” own social media platform is used for (IKEA Japan), thus displaying caution on owner retention and loyalty. Thus, as social media. IKEA finds engagement ‘engagement’ rather applies to catching difficult, “because a lot of people are very new ‘fans’ or ‘followers’ on social media, cynical, just going against anything … we cannot specify how this factor is because on Twitter is is easy to say utilized within the other platforms in anything, close an account and open a new accordance to the PIE framework. one” (IKEA Japan). Another aspect touched upon by IKEA Japan is that Accordingly we identify that sociability, among the older generation social media when actively engaging with consumers users, the medium is mostly viewed as a through being humble and honest in “showing off tool” (IKEA Japan), which accordance to local culture, is central in contradicts with norms and values on the order to be perceived as an equal among local market and how one should behave social media users, fans and followers. (Markus & Kitayama, 1991; Rosenberger, 1994; Clammer, 1995; Davies & Ikeno, Caution 2002). Thus, unspoken cultural aspects Caution is a factor that indirectly affects may further complicate application the way MNCs engage with their (Markus & Kitayama, 1991; Ricks, 1993) consumers on social media, as cultural of engagement on the Japanese market for mechanisms influence communication MNCs. In this case the framework (Kaplan (Ricks, 1993; Yaprak, 2008; Cleveland et & Haenlein, 2010) merely applies to the al., 2015) as well as transparency being extent of written and posted content, but hard to omit (Tuten, 2008). Thereby, being not for interaction, since IKEA Japan does honest (Kaplan & Haenlein, 2010) can be not engage with posts, positive or negative, said to have an essential role in a as “it is their (the user's) space to write conversation, as interaction can lead to what they want about our company” rapid exponential reach among consumers (IKEA Japan). In addition, the ‘like’ button (Woerdl et al., 2008; Sherman & Smith, on Facebook does not encompass the same 2013). conceptual meaning for Japanese users,

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compared to other parts of the world. In Japan the “like” button only includes positive meaning, in the sense of Presence Interest Engagement ‘Congratulations. Well done.’, but may in the West or North America include both Reachability Commercial Information Adaptability liking a post per se as well as an Applicability Inspiration Sociability acknowledgement that someone’s post has been seen, IKEA Japan states. Therefore Popularity Tutorial Caution IKEA Japan’s presence on Facebook, where user profiles are genuine and Professionalism Competition negative comments or complaints are uncommon, is likely to be associated with Figure 1. Distinctive factors of social media usage the factor of caution. If enquiries were to arise, IKEA’s Customer Center is informed and takes over the errand using direct- Conclusion communication with consumers IKEA The purpose was to investigate social Japan states. Thus, we can assume that media usage of Swedish companies H&M, engagement is a component that is not IKEA, and VCC in Japan, in order to fully utilized and thereby not applicable to develop a framework of how MNCs work a great extent, causing IKEA Japan to not with social media, as well as identify reach the full potential of engagement factors that affect how foreign companies when utilizing social media. work with social media on a local market.

In the case of complaints, VCC Japan We have introduced the PIE model and states these to be occurring on Twitter. identified distinctive factors that influence Depending on the gravity, the conversation presence of Swedish MNCs on the may be moved to direct-message Japanese market including: reachability, correspondence within the same media; applicability, popularity, and thus decreasing the level of honesty professionalism. Further to create interest (Sherman & Smith, 2013) and increasing when having presence, the distinctive use of caution through diversion of risk factors of commercial information, (Markus & Kitayama, 1991; Davies & inspiration, tutorial, and competition are of influence. Lastly, to converse and engage Ikeno, 2002). with social media users the distinctive Consequently we identify that caution is a factors of adaptability, sociability, and central factor of consideration for MNCs caution are effecting social media usage on during consumer and user engagement on the local market of Japan. This thesis social media platforms in Japan. Cultural contributes to the literature through norms and values have great influence, and proposing the PIE model for social media tone-of-voice within communication as usage of Swedish MNCs on the local well as correct interpretation of cultural market of Japan. Further, the distinctive mechanisms is essential when portraying factors contribute to practice as they can and representing the corporate brand on influence how MNCs work with social social media. media on the Japanese market, in order to employ activities for successful usage and equally be aware of aspects concerning local culture for greater consideration going forward.

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Limitations and Future Research Acar, A. (2013). Culture and Social Media Investigating social media usage by Usage: Analysis of Japanese Twitter Swedish companies H&M, IKEA and Users. International Journal of VCC in Japan includes limitations, as it is Electronic Commerce Studies. Vol. 4 a first attempt to map out the area of no. 1 pp. 21-32 research; thus addressing lack of similar Adamopoulos, P. & Todri, V. (2014). study found during the literature review. Social media analytics: The Also, this study focuses on social media effectiveness of promotional events on including Facebook, Twitter and LINE that brand user base in social media. Social encompass the most utilized media in media and digital collaborations. Japan for greatest relevance of findings. Ali, A. H. (2011). Power of Social Media Thus, further research within this area is in Developing Nations: New Tools for necessary, for comparability of results, as Closing the Global Digital Divide and well as reasons of the ever-changing nature Beyond. The Harvard Human Rights and vast amount of social media. Journal. Vol. 24 pp. 185-219 Additionally, as this study touches aspects Arora, P. & Predmore, C. E. (2013). Social of culture within both Sweden and Japan, Media as a Strategic Tool: Going the researchers are aware that the Beyond the Obvious. Advanced Series discussion of the findings are conducted in Management. Vol. 11 pp. 115-127 from a Swedish perspective, even if Azar, E., Hedvall, R. & Larsson, M. cultural comparisons are not explicitly (2011). What is Swedishness? - a intended or drawn. Naturally, products the qualitative research from the customer- companies sell differ and thus social media and organisational perspective. usage can vary, however, research of the Jönköping International Business companies in relation of each other is School. possible due to the shared ‘Swedishness’ Baack, D. W., Harris, E. G. & Baack, D. as well as operating on the same foreign (2013). International marketing. Sage market with similar economic Publications. circumstances, literacy rates and Barry, T. E. & Howard, D. J. (1990). A technological infrastructure to that of Review and Critique of the Hierarchy of Sweden. This study is limited to three Effects in Advertising. International Swedish MNCs and for more depth further Journal of Advertising: The Review of respondents, as well as academic social Marketing Communications.Vol. 9 no. media experts and Japanese cultural 2 experts may be of importance, which BBC News. (2015). Japan Country Profile should be addressed in future research. - Overview. Retrieved 2015-05-22, However, due to limited time it was seen from: as sufficient to lay a basis and theoretical http://www.bbc.co.uk/news/world-asia- understanding within the area of social pacific-14918801 media in Japan for the three companies. Berthon, P. R., Pitt, L. F., Plangger, K. & Shapiro, D. (2012). Marketing meets Web 2.0, social media, and creative List of References consumers: Implications for international marketing strategy. Abbott, J. (2012). Democracy@ Business Horizons. Vol. 55 no. 3 pp. internet.org Revisited: analysing the 261-271 socio-political impact of the internet Bertot, J. C., Jaeger, P. T. & Grimes, J. M. and new social media in East Asia. (2010). Using ICTs to create a culture Third World Quarterly. Vol. 33 no. 2 of transparency: E-government and pp. 333-357 social media as openness and anti-

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