Business operations of Sainsbury PLC

Literature Review

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................2
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

AIM: “TO DETERMINE THE WAY IN WHICH SOCIAL MEDIA ADVERTISING
INFLUENCES THE PURCHASE DECISION OF CUSTOMERS IN RETAIL SECTOR OF
UK- A STUDY ON SAINSBURY PLC”
Objectives:
 To understand concept of social media advertising as promotional tool in retail industry
 To ascertain relationship between social media advertisement and customers perception
 To analyse importance of social media marketing is business operations of Sainsbury
PLC
 To communicate ways in which social media advertising influence purchase decision of
customer at Sainsbury PLC
INTRODUCTION
Literature review has been analysed as study and analysis of various other scholarly
papers in the research. Objective behind carrying out this review is to achieve or gather
information as well as critical analysis statement given by various other literatures. Further,
literature review also involves different theories, concepts and models in the research which
helps the scholar in identification of actual results. Present literature reviews of other scholar and
researchers on the social media advertisement and its influence on consumer decision making in
retail sector of UK (Rapp and et.al, 2013). Further, overall journals and articles which are
utilized has been cited properly. This part will help to establish an effective relationship between
different scholars. In addition, scope of this literature review is to determine various ways in
which social media advertisement impact of consumer decision within retail industry of UK.
Critical analysis of view points of different scholars will be accomplished to provide
understanding about different ways to communicate results and outcomes. In order to carry out
research, Sainsbury PLC has been selected by scholar which is an international retail business
enterprise. Company also has its business units in overseas nation but consider its main market as
retail sector of UK. Various innovative and effective promotional tools have been used by retail
industry companies in UK to promote their products and services in market. Social media
advertisement is emerging promotional tool which has enabled organisation to influence

purchase decision of customers. Present literature review will is based on various themes related
to aim of conducting research.
2

MAIN BODY
Concept of social media advertising as promotional tool in retail industry
According to Paquette, (2013), social media marketing is analysed as a form of internet
marketing which utilizes networking websites as an important marketing tool. It is medium on
online advertisement that concentrated on social networking services. With this, advertisements
are distributed to users depending upon information gathered from profiles of target group.
In past several years, retail industry of UK has achieved high growth and development in
comparison with other industries due to rapid increase in revenue of retail business enterprises.
Increase in income has also created competition in market between companies. In order to
sustain market position and sales, companies are giving more focus on promotion of their
products among target customers.
Social media advertisement is emerged as important tool for promotion of products and
services in market. Important benefits of advertising on social media sites is that companies can
also take benefits from the demographic information of their customers accordingly. It usually
combines various options of targeting segments such as geographical, socio-psycho graphic and
behavioural in order to make detailed group identification possible.
Social media has created its major influence on customer's perception towards products
and services. Individuals within age group of 15 to 45 are widely connected with each other on
such sites and share their experience about everything.
On contract to this Öztamur and Karakadılar, (2014), the issues with this social media
advertisement from company's perceptive is analysed that it will time consuming. Further, it is
not considered as shot affair that they need to be nurtured over time. No doubt it provided the
competencies to target in cost efficient way but also raised issues for retain companies to
influence consumer behaviour and decisions. Continuous competition has forced every business
in retail industry to adopt social media as a tool to provide recognition about difference in their
products and services in comparison with competitors.
3

In UK, there are various businesses in retail which offers wide range of products to customers
that contains similar products. Consumer perceptions towards products get influenced by
innovative and attractive advertisements, which are designed by sell their products.
Relationship between social media advertisement and customer’s perception
As per the view of Sashi, (2012), there is an effective relationship between advertisement
and customers perception because these are made to influence the behaviour of consumer
towards products and services.
Social media is methodology for analysis of factors that contributed to consumer
perception towards advertisement. It is proposed for analysing influence of productivity on
perception of customers. Customer rendered social media advertisement has a position impact on
both attitude and equity which further leads to the purchase intention as well. Further, Social
media like Facebook and twitter helps to build relation with consumers to get products and
brand related information.
In present scenario, marketers of retail companies are continuously using networking
sites more and more to reach consumers with their advertisement and promotional offers along
with personalized messages. Wide offers have been formulated by companies to attract
customers in the market. It tends to provide understanding about buying power of consumers in
market along with their taste and preferences towards retail products.
Mainly in clothing segment of retail, sales of products and services have increased after
social advertisement. It has also encouraged customers to select products from wide variety
offered by company in advertisement. Attractive offers and perks have created value among
customers towards a brand in market.
In contrast to this Schultz and Peltier, (2013), social advertising creates negative impact
on towards products awareness and do not add values for advertisements. Direct advertisement
by a company is unable to influence customers towards brands whereas social media content
creates a viral response, attracts more customers at one time, and generates more brand
awareness. (), found in their study that customers avoid advertising on social media and are not
much convenience with the shown by marketers on those sites. It creates traffic on customer's
cell phone which irritates them and creates negative perception towards social media. Further,
4

Fake advertisement are provided by companies to sell their products which hampers perception
of customers towards social media advertisement.
Importance of social media marketing is business operations.
According to (B. Valentine and Powers, (2013), retail sector enterprises highly emphasis
on using social media advertisement for marketing as it enables them to interact with the
customers. Going through the tweets and updates which are posted by their target customers
base provide them insight in to what they require. Further, it is helpful for companies to
formulate their marketing strategies which addressees their requirements. Social media ease the
process of providing and receiving feedback. Direct communication with customers through
messages tends to create an informational relationship of company with customers. It also
provides a convenient and easily assessable way to determine what they feel and provides
companies a chance to respond. With this platform, retail businesses are view their customer
complaints and assure their consumer that their problem will be resolved properly.
According to Malthouse and et.al., (2013), Social media advertisement is also important
because it does not require cost for marketing and reduces promotional cost of retail
organisation. It is important to treat appropriately as well as being continuous aware about
merits and demerits before implementation of the social media marketing. Through increase in
brand among awareness among customers companies will be able to generate high values and
quality of products among customer. In addition to this, retail industry lay down its emphasize of
this technology for greater customer engagement and greater access to international market.
Kim, Kim, and Nam, (2014) found in their study that social media advertisement has
been used to increase brand awareness among customers along with introduction of new and
attractive business position and situation that needs to increased in market. Retail organisation
have their business in overseas market and they have also made their strong customer in different
parts of country. When company make efforts to innovate their products in market, they usually
prefer to get feedback from customers. Social media marketing enable companies to
communicate with their people in different countries and provide opportunities to take
advantages of various communication and highly preferred skills and competencies at
workplace. Social media advertisements and high perception of customers can be analysed
5

through various important business principles that needs to be attained by management for
achievement of objectives effectively.
Ways in which social media advertising influence purchase decision of customer
According to Rai, (2012), “recommendation from peers will reap a lot of customers conversion”.
71% of individuals in UK will move towards online purchase if products and services will be
suggested by their peers and others. This can be impelled by people inbuilt mistrust of brands
and the traditional advertisement. People simply believe about the statement what their peer
would say and seek their opinion and often validation. Social media networking service has
connected people with each other through virtual media and encouraged direct communication
of people with their colleagues and family (Constantinides, 2014). This provide support to
customers in seeking recommendation for purchasing products from peers by sharing
information on social media applications. Social media enables consumers to get advice of their
peers and family in purchasing products and services.
Apart from this, Turban and et.al (2017) stated that companies existance on social media
provided major influence on behaviour of customers. Even when the brands achieve overall
attention from their customers and social influencers. Further, On social media advertisement it
will be difficult to convenience any person of company's own credibility as consistent feed
which showcases their products. A consistent feedback which determined their product in use
and provide different values with the help turn visitors in to the followers and in to the buyers.
Wide range of products and services will intend customers to purchase products and services.
Social media tends to create awareness about products and service among customers. Discovery
of new and unique method for promotion is also important way through which social media will
influence customer perception influence them to buy products online. As per view of Bruhn,
Schoenmueller and Schäfer, (2017), 84% of people are likely to be influenced to purchase
products on the basis of users generated content which is generated by companies on social
media application. This is an act of generating followers to share content such as reviews,
images and stories. Etc. In contrast to this Chaffey and Smith, (2013) has viewed that, risk of
ineffective and unwanted and in appropriate content in advertisement will create issues for
company and promotes negative perception among customers. Further, greater online exposure
6

will have the potential to attract risk for customers or organisation. Risk will involve the negative
feedback, information tasks or hacking.
CONCLUSION
From the above, it is concluded that social advertising is methodology of online
promotion of products and services that provide support to retail industry enterprises in
achieving high profitability in market. Continuous changes in consumers perception always
provided influence Sainsbury's method of consuming products and service in market. At present
social media advertisement has strong presence in market and it tends to create influence on
perception of customers. Study also provides understanding that consumers tends to buy
products having high quality and low prices. They always purchase products after making
comparison between brands. Social advertising has provided them opportunities to compare the
prices and quality of products and services. Further, it was also analysed that the perception of
consumers also gets influence through reviews of their peers and purchase experience of others.
7

REFERENCES
Books and Journals
8

9