Challenges for Small Event Management Companies When Adopting Social Media for Increasing Customer Loyalty

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Challenges for Small Event Management Companies When Adopting Social Media for Increasing Customer
Loyalty
Introduction
Research Background
The current literature regarding social media is moderately recent and
primarily sheds light on the opportunities and benefits of engagement between the
consumer and the brand. By comprehending and utilizing social media marketing,
knowing the expectations of social media consumers (Ashley and Tuten 2015).
Thus, creating reliable associations with those consumers, social media can be
implemented to any small organizations to enhance consumer loyalty. Social media
has aided consumers to talk about what they want, require, desire, prefer and
dislike in real time, thus increasing the opportunity for small businesses especially
event management organizations to focus in this data and connect to customers of
personal level. According to Ile, Nwosu and Udemba (2018), since social media is
being implemented at an increasingly rapid pace by customers, it is imperative to
conduct investigation on current strategies applied by professionals in the field of
marketing and public relations regarding challenges small event management
companies face while using social media for gaining consumer loyalty.
Why this topic
In current times, social media has had tremendous impact on small
businesses. Social platforms like Twitter and Facebook have transformed the way
that individuals communicate and in the process have shaped the way that
businesses interact with consumers (Rugova and Prenaj 2016). Social media’s
influence operates intensely than customer engagement. As a result, it is essential
to comprehend the challenges encountered by small event companies in using
social media to increase customer loyalty.
Previous research
As per the analysis, social media has developed as a vital way of
communicating for businesses-small, medium or large. Small businesses in recent
times very rarely can disregard challenges and impact of using social media. Social
media plays an imperative role in marketing and creating relationships with
customers and forming a reliable base for them (Ashley and Tuten 2015).
Srinivasan, Bajaj and Bhanot (2016) have noted that in social media driven
environment, it is necessary for small management enterprises to understand
Facebook, Twitter, and Instagram along with the strategies behind using social
media for increasing their business and consumer loyalty. However, with restricted
obstructions to entry, small businesses are gradually aiming to use social media as
primary means of marketing (Hassan, Nadzim and Shiratuddin 2015).
Unfortunately, several small businesses face challenges to use social media and
ways in which they can use social media strategies to engage customers.
Gaps between topics
There are extensive researches which analyse challenges regarding use
of social media by large corporations. However, struggles and impediments faced
by small event management in building customer loyalty and retention have been
largely overlooked. The research will analyse different challenges of social media
strategies faced by small event management companies and its impact on customer
loyalty and behaviour.
Research objectives
 To explore the relationship between Social Media and
Online Sales in small enterprises
 To understand the challenges and risks of Social Media
Marketing in the sector of small event management
companies
Research questions
1. What are the challenges for small event management companies
when adopting social media for increasing customer loyalty?
Literature review
Purpose of study
The primary purpose of this study is to evaluate social media as a tool for
successful marketing operations of small enterprises in 21st Century. It is vital for
small enterprises to provide effective product services in order to increase customer
loyalty. The current literature will offer explorations of challenge and importance of
social media marketing strategies in increasing customer loyalty.
Social Media and Online Sales in Small Enterprises
Nobre and Silva (2014) in their study have found that product and
service evaluations in social media space have been developing utmost importance.
Such high level of importance is elevating as customers have the competence to
engage and apply product and service reviews as a vital aspect of their purchasing
decisions. According to Dahnil et al. (2014), traditional market segmentation has
shown incompetence on forming linkages between individuals and products which
they prefer to purchase. As the means of selling to customers by separating them
from their social groupings significantly disregard choices of consumers and their
purchasing decisions, social media has been offering substantial opportunities for
small enterprises to target their customer. Cheong, Hallihan and Shu (2014) have
opined that as consumers have attained high contentment to make buying decisions
with the social arena. Thus small management enterprises are given the opportunity
to benefit from social media as well as e-commerce exhilaration.
Challenges and risks of Social Media Marketing in the sector of small event
management companies
Comprehensive studies of Ashley and Tuten (2015) have claimed that
Social Media Marketing for small event management enterprises primarily
necessitates knowledge and consequently encounters critical challenges and risks
before achieving success that is significant to point out. Srinivasan, Bajaj and Bhanot
(2016) in their studies have identified one of the main challenges for small event
management enterprises in using social media marketing that is possible harm their
reputation by using their social media sites inefficiently. Furthermore, extensive use
of promotions and advertising services in commercial way by small enterprises tends
to lose their audience base as audiences might develop exasperation due to extensive
advertising on social media and show a tendency to unfollow the company from
social media.
On the other hand, Rugova and Prenaj (2016) in their study have found
that social media comprises a wide range of new world of privacy, safety measures,
intellectual property, employment practices in addition to other potential legal risks.
Employee base of small event management organizations engaged in Social Media
Marketing department requires understanding information technology regulation
prior to the practice of social media activities. Meanwhile, Wang, Pauleen and Zhang
(2016) have opined that small event management companies must consider high
security and operational threats while using social media in enhancing consumer
loyalty. According to Cheong, Hallihan and Shu (2014), often small event
organizations encounter malware, viruses or in severe cases spyware while using
social media which cause small enterprises to be victims of financial risks.
Furthermore, there has been identified intellectual property as well as media risks in
relation to the protection of third-parties or the publication of fake positive reviews.
Thus, authors have opined that it is highly essential for small event management to
understand obstacles which arise while using social media.
Digital marketing on customer relationships
Wang, Pauleen and Zhang (2016) in their paper have primarily focused
on the value of digital marketing for both marketers and consumers. Dwivedi, Kapoor
and Chen (2015)have drawn insights from authors’ paper which explores the impact
of digital marketing on sales and products advertising. Furthermore, with the
increasing development in the use of social media practices in the domains of public
relations and marketing, emerging event managements have been aiming to
establish personal linkages between brands and consumers. Meanwhile, Dwivedi,
Kapoor and Chen (2015) in their study have found small event management
organizations can enhance their social media marketing strategies by engaging their
consumers by means of social media to efficiently compete in a competitive industry.
According to Dwivedi, Kapoor and Chen (2015), this type of engagement can be
promoted by sharing entertaining and interactive posts as well as constructive and
Research methodology
Research philosophy
A research philosophy is a belief regarding the way in
which data in relation to a phenomenon should be gathered,
analysed and used. Within the scope of business studies in particular
there are four major research philosophies namely, Pragmatism,
Realism, Positivism and Interpretivism. The paper will use an
Interpretivism approach which will help the researcher base the
study on naturalistic approach of data collection such
as interviews and observations and understand challenges and value
of social media in small event management companies (Mas et al.
2014). Advantages of Interpretivism relies on the fact that such an
approach will be associated with a high level of validity as data in
such studies are likely to be reliable and authentic. On the contrary,
primary disadvantage associated with Interpretivism mainly relates
to subjective nature of this approach and increasing chances of bias
on part of the researcher.
Research approach
There are two types of research approaches namely
inductive and deductive. A deductive approach typically begins with
a hypothesis, while an inductive approach generally employ research
questions drawn from the data in order to draw to new theory
emerged from the data (Mas et al. 2014). The current paper will use
inductive approach to gather data to meet research objectives
regarding challenges faced by small enterprises while using social
media for increasing consumer loyalty.
Research design
The research design mainly refers to the overall strategy
which researchers choose to integrate diverse components of the
study in a coherent and logical way. Qualitative research is
implemented in studies where a relationship between obtained data
and observation is established on the basis of perceptions and
scholars of participants. While, quantitative research is used to have
statistical conclusions to gather actionable insights. The current
study to understand challenges of social media by small event
enterprises will use descriptive research design by conducting
literature review.
Data collection
In the current study, the researcher will use primary method for data
collection. Furthermore, for collection of data, the researcher will
conduct focus group interview. The nature of the analyses of focus
group interview data will primarily be established by the research
question and the purpose for which the data are gathered (Alase
2017). Moreover, in the current study focus group interview will
provide an in- depth exploration of the challenges faced by small
event management companies in using social media to gain customer
loyalty.
Data Analysis
Data analysis is crucial to credible qualitative research.
The current study will conduct a thematic analysis for analysing data
collected from focus group interviews. Firstly, the researcher will
transcribe responses of interviewed focus groups and thematically
arrange the responses in order to gather the answers for each
interview protocol question. At the second stage, the researcher to
explore the views and perspectives of participants will review the
central ideas to identify thoughts and opinions transpiring
frequently.
Ethical Consideration
To maintain ethical considerations while conducting the
current study, researcher should be aware of the tone of the
discussion while conducting interview as well as during analysis and
reporting. Furthermore, researchers should avoid creating
apprehension and establish any potential hierarchies within the
group.
Conceptual framework
Customer loyalty and social media are identified as two vital
components which are decisive for small event management
organizations (Hassan, Nadzim and Shiratuddin 2015). The current study
will shed light on challenges faced by small enterprises while using social
media marketing strategies to enhance their customer loyalty. From the
conceptual framework, it can be analysed that product and service
perception determine consumer’s perceived value and their level of
satisfaction. These two elements are again perceived as vital factors
which create customer reliability thus, resulting to increased customer
loyalty.
Product and
Service
perception
Customer
perceived value
Customer
Contentment
Consumer
Reliability Consumer
Loyalty
References
Alase, A., 2017. The interpretative phenomenological analysis (IPA): A
guide to a good qualitative research approach.
International
Journal of Education and Literacy Studies,
5(2), pp.9-19.
Ashley, C. and Tuten, T., 2015. Creative strategies in social media
marketing: An exploratory study of branded social content and
consumer engagement.
Psychology & Marketing,
32(1), pp.15-27.
Cheong, H., Hallihan, G. and Shu, L.H., 2014. Understanding analogical
reasoning in biomimetic design: An inductive approach. In
Design
computing and cognition'12 (pp. 21-39). Springer, Dordrecht.
Dahnil, M.I., Marzuki, K.M., Langgat, J. and Fabeil, N.F., 2014. Factors
influencing SMEs adoption of social media marketing.
Procedia-
social and behavioral sciences,
148, pp.119-126.
Dwivedi, Y.K., Kapoor, K.K. and Chen, H., 2015. Social media marketing
and advertising.
The Marketing Review,
15(3), pp.289-309.
Hassan, S., Nadzim, S.Z.A. and Shiratuddin, N., 2015. Strategic use of
social media for small business based on the AIDA
model.
Procedia-Social and Behavioral Sciences,
172, pp.262-
269.
Ile, C.M., Nwosu, N.L. and Udemba, N.F., 2018. Social Media: A Tool For
Successful Operation Of Small And Medium Scale Enterprises
(Smes) In The 21st Century Nigeria.
Nigerian Journal of Business
Education (NIGJBED),
5(1), pp.123-134.
Mas, J.F., Kolb, M., Paegelow, M., Olmedo, M.T.C. and Houet, T., 2014.
Inductive pattern-based land use/cover change models: A
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& Software,
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Nobre, H. and Silva, D., 2014. Social network marketing strategy and
SME strategy benefits.
Journal of Transnational
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19(2), pp.138-151.
Research aim
To explore the challenges faced by small event management
companies while adopting social media strategies to increase
customer loyalty.