THE MARKETING POWER THROUGH SOCIAL MEDIA Mathilde Segouffin A research project submitted in part fulfilment of the requirements of the degree of Bachelor of Marketing with Honours in Business Studies 9 089 words DUBLIN BUSINESS SCHOOL June 2011 Table of contents Table of contents .......................................................................................................... 2 List of Tables/Figures .................................................................................................. 4 Acknowledgements ...................................................................................................... 6 Abstract ........................................................................................................................ 7 1. INTRODUCTION .......................................................................................... 9 2. LITERATURE REVIEW ............................................................................ 11 2.1 Introduction .............................................................................................. 11 2.2 Definitions of the main concepts ............................................................. 11 2.3 New behaviour of company ..................................................................... 13 2.4 Consumers power through social media .................................................. 15 2.5 The company influence through Social media ........................................ 17 2.6 Conclusion ............................................................................................... 19 3. OBJECTIVES AND METHODOLOGY ................................................... 20 3.1 Introduction .............................................................................................. 20 3.2 Research Problem .................................................................................... 20 3.3 Research Question ................................................................................... 21 3.4 Research Objectives ................................................................................. 21 3.5 Research Methodology ............................................................................ 22 3.6 Conclusion ............................................................................................... 28 4. DATA ANALYSIS ....................................................................................... 29 4.1 Introduction .............................................................................................. 29 4.2 Quantitative analysis ................................................................................ 29 4.3 Qualitative analysis .................................................................................. 41 4.4 Conclusion ............................................................................................... 45 5. CONCLUSIONS AND RECOMMANDATIONS ..................................... 46 2 APPENDIX ................................................................................................................ 52 Appendix 1: Consumer confidence in business and media ........................................ 53 Appendix 2: Consumer confidence in fellow consumer ............................................ 55 Appendix 3: The rise of word-of mouth with Internet and Social Media .................. 56 Appendix 4: Think inside-out than think outside-in .................................................. 58 Appendix 5: From 80:20 to 50:50 (Jaffe, J., 2010, p56 and 235) ............................. 59 Appendix 6: From 4 P to 6 P (Jaffe, J., 2010, p217) .................................................. 60 Appendix 7: Conversation (6P‟s Model) Brian solis “The conversation prism” ...... 61 Appendix 8: Better customer service (Jaffe, J., 2010, p97) ....................................... 62 Appendix 9: 10 new rules of customer service (Jaffe, J., 2010, p128) ..................... 64 Appendix 10: Aknowlegement (ADIAS model) Coldplay‟s album .......................... 65 Appendix 11: Dialogue (ADIAS Model) Apple Store – Genius Bar......................... 66 Appendix 12: Incentivization (ADIAS Model) Starbucks – Card ............................. 67 Appendix 13: Activation (ADIAS Model) Panasonic community – Living in HD ... 68 Appendix 14: Activation (ADIAS Model) NikeiD – customize your choose ........... 69 Appendix 15: Electronic questionnaire 1 ................................................................... 70 Appendix 16: Electronic questionnaire 2 ................................................................... 71 Appendix 17: Semi-structured interview ................................................................... 73 Appendix 18: Semi-structured interview - Citroën .................................................... 74 Appendix 19: Semi-structured interview – Smart Tour ............................................. 80 Appendix 20: Semi-structured interview – 8 Bis Communication ............................ 86 Appendix 21: Repetition enhances believability (Edelman, 2011, p21) .................... 89 Appendix 22: Important factors for corporate reputation (Edelman, 2011, p16) ...... 89 Bibliography ............................................................................................................... 90 References .................................................................................................................. 97 3 List of Tables/Figures Figure 2.2.1: The model of consumer behaviour (Hoyer, W.D. and MacInnis, D.J., 2007, p12) .........12 Figure 2.3.1; Evolution of European advertising expenditure (ZenithOptimedia, 2011) .....................13 Figure 2.3.2: Advertising expenditure in Europe 2009-2011 (ZenithOptimedia, 2011, p13) ..............14 Figure 2.4.1: Effect of word-of-mouth on company brand (McKinsey&Company,2010, p5) ..............15 Figure 2.4.2: Trust in Social Media (Onprenduncafé, 2010) .................................................................16 Figure 2.5.1: AIDAS Model (Jaffe J.,2010, p122) ...............................................................................18 Figure 3.4.1: Uses of different types of interview in each of the main research categories ..................27 Figure 4.1.2.1: Age of the Sample ........................................................................................................29 Figure 4.2.2.1.1: Source(s) of information(s) to buy new product (Quest 1 - Q1) ................................30 Figure 4.2.2.1.2: source(s) of information(s) to buy known product (Quest 1 - Q2) ............................30 Figure 4.2.2.1.3: Consumer‟s use multiple sources of information (Quest 1 – Q3) ..............................31 Figure 4.2.2.1.4: Consumer attention on advertising (Quest 1 – Q4) ....................................................32 Figure 4.2.2.1.5: Type of advertisement that influence consumer (Quest 1 – Q5) ................................32 Figure 4.2.2.2.1: Consumer trust company and peers (Quest 1 – Q 6 - 7 ) ...........................................33 Figure 4.2.2.2.2: Level of consumer trust company and peers (Quest 1 – Q 6 - 7) ...............................33 Figure 4.2.2.3.1: Consumer trust in social media (Quest 1 – Q8) .........................................................34 Figure 4.2.2.3.2: Level of consumer trust on social media (Quest 1 – Q8) ...........................................34 Figure 4.2.2.3.3: Social Media used to obtain purchase‟s information (Quest 2 – Q1) ........................35 Figure 4.2.2.3.4: Consumer' listen advice from unknown Internet user (Quest 2 – Q2) .......................35 Figure 4.2.2.3.5: Influence of brand‟s fake comment on social media (Quest 1 -Q9)...........................36 Figure 4.2.2.4.1: Consumer‟s word-of-mouth (Quest 2 – Q3-4) ...........................................................36 Figure 4.2.2.4.2: Level of consumer word-of-mouth (Quest 2 – Q3-4) ................................................37 Figure 4.2.2.4.3: Group with customer shares information (Quest 2 – Q5) ..........................................37 Figure 4.2.2.5.1: Brands on social media (Quest 2 – Q6.A)..................................................................38 Figure 4.2.2.5.2: Consumer‟s expectations from brand on social media (Quest 2- Q6.B) ....................38 Figure 4.2.2.5.3: Consumer member or fan on a brand (Quest 2 – Q7) ................................................39 Figure 4.2.2.5.4: Consideration of consumer‟s comment on social media (Quest 2 - Q 8) ...................40 4 Figure 4.1.3.5.5: Consumer‟s influence to companies on Social Media (Quest 2 – Q9).......................40 Appendix1.1: Trust in business to do what is right (Edelman, 2011, p6) .............................................53 Appendix1.2: Trust in media to do what is right (Edelman, 2011, p8) .................................................54 Appendix 2.1: Consumer trust in each advertising channel (Ping Elizabeth,2009, p2) ........................55 Appendix 3.1: The consumer decision journey -Mc Kinsey & company (Jaffe J., 2010, p54) .............57 Appendix 3.2: Top 3 factors that influence at principal stages of the consumer decision journey – example mobile phone (McKinsey&Company,2010, p3) .....................................................................58 Appendix 5.1“Three types of premium customers” (Jaffe, J., 2010, p56 ..............................................59 Appendix 6.1The new customer-Activation model Jaffe, J. (2010, p217) ...........................................60