Impact of Social Media on Luxury Brands

This assignment delves into the influence of social media marketing strategies on customer equity within the realm of luxury fashion brands. It requires a critical analysis of existing research, focusing on empirical studies that investigate the relationship between social media activities and enhanced customer value for these prestigious brands. The assignment emphasizes understanding how content generation, brand engagement, and online interactions on platforms like Facebook, Twitter, Instagram, etc., contribute to building strong customer relationships and ultimately impact brand equity.

Research Project

Table of Contents
TITLE..............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................3
RESEARCH METHODOLOGY.....................................................................................................6
TIMELINE AND ACTIVITIES......................................................................................................7
.........................................................................................................................................................8
REFERENCES................................................................................................................................9

TITLE
To analyse the influence social media marketing practices used by Morrisons in
enhancing their profitability and customer base.
INTRODUCTION
Digital technology is considered as an advanced feature that can help in speeding up the
rate of operations and processes in order to increase the productivity rate of the organisation. IT
is obvious that as the competition between the organisations is increasing day by day, so every
single firm is focusing on the ways by which they can compete with the others and thus, can gain
a successful competitive advantage in the market place (Saravanakumar and SuganthaLakshmi,
2012). Social media marketings is one of the essential element of digital marketing technologies.
Social media marketing not only allows business enterprises to promote about their goods and
services to large number of users, but it also allows an effective platform through which the
management could easily interact with their consumers. In this context, the focus of this research
project will be analysing the influence of social media marketing practices utilised by Morrisons
in enhancing their profitability and customer base. Morrisons is fourth largest chain of
supermarkets in United Kingdom which headquartered in Bradford, West Yorkshire, England.
As per latest statistics the company had 498 superstores across England, Wales and
Scotland in 2016. The organisation with its effective and efficient marketing tactics, able to
generate millions of customers towards it. There are ample of advantages and disadvantages
associated with the use of social media marketing. In this context, the researcher with the help of
different articles and journals jotted by senior researchers establish a robust literature review.
The implications of social media marketing in today's organisations will be ascertained through
literature review. Afterwards, researcher will elaborate the research methods that he or she will
going to use in the present study in order to accomplish the aim and objectives of the study.
Eventually, researcher will provide timeline and schedule of accomplishing each and every
activity associated with the research.
Aim and objectives of research study
The aim of research is “To analyse the influence social media marketing practices used by
Morrisons in enhancing their profitability and customer base.”
Objectives
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In order to underpin the aim of study, researcher has formulated objectives which are listed
below:
 To ascertain the meaning of social media marketing and its applications.
 To examine the impact of social media marketing done by Morrisons.
 To identify the challenges and limitations faced by Morrisons by using social media
marketing. To recommend Morrisons to enhance the efficacy in using social media marketing.
Research Questions
 What is the meaning of social media marketing and its applications?
 What are the impact of social media marketing done by Morrisons? What are the challenges and limitations faced by Morrisons by using social media
marketing?
Rationale of research study
Social media marketing practices have been utilised by the organisations adequately. In
order to understand the impacts of social media marketing on organisation productivity and
profitability, researcher selected this topic for research project. The research will help in
enhancing the level of knowledge and education regarding implication of social media
marketing. Researcher will further able to enhance his or her learning in regards with digital
technologies and its implications on organisational success by reviewing literature. Through this
research, researcher will get familiar with Morrisons which is fourth largest supermarket chain
operating in United Kingdom. Eventually, this research will help in raising the level of
knowledge, skills and competencies of researcher. Thus, the rationale for selecting social media
marketing and its implication on organisation is to increase knowledge level and understanding
about the subject matter.
Significance of research
This research project will help the academicians by increasing their knowledge level
regarding the impacts of social media marketing on organisational productivity and growth. In
this research, researcher will critically analyse the benefits and limitations of social media
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marketing by reviewing authentic journals, books and articles jotted by senior researchers. This
will help in enhancing the level of understanding in end users and they will further use this
research in their future study. The research will help other researchers by providing deep insights
of social media marketing and its implications on organisations. Furthermore, the research will
help the management of Morrisons by providing them detail understanding about the utilisation
of social media marketing so that they can upgrade their existing practices and use it more
efficiently in the future.
LITERATURE REVIEW
This is important considered as it enables to provide viewers in depth understanding the
research topic and objectives set. Main focus of the research is carried out towards impact of
social media in raising the sales and profitability of the organization.
Meaning of social media marketing
As per Heymann-Reder, (2012) there are different type of changes that has taken place in
relation with technology and these are highly helpful companies to have direct interaction with
people around the world. There are different type of services and products that are included and
delivered by companies. The rate competition is high as there are firms that deliver their
customers with similar type of products and services (Lamberton and Stephen, 2016). When a
customer gets to know about the goods that are provided by the firm at regular basis, then it
enable to develop positive perception. There are certain set of expectations that individuals have
towards the services that are delivered to them. When management of the firm is able to
understand them and take up steps accordingly, then it helps to raise the business growth in
positive manner. According to De Vries, Gensler and Leeflang, (2012) social media marketing,
this is considered to be the technology that targets people making use of social networks and
applications that are spread towards brand awareness and in promoting particular products. There
are campaigns that are done around developing social media presences and for major platforms.
Further, it enables to create advertorials and content. Apart from this, there are different type of
issues that are faced by people and to develop strong relationship with them management make
sure that all the issues the issues that are faced by them are considered and appropriate steps are
taken to overcome them. There are many social sites like Facebook, Instagram, etc. that has
come up with an effective source through which employees are able to present the information or
offers that are provided by the companies.
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Kim. and Ko, (2012) stated that there are many activities that are included and all these
are required to be supported with finance. In all the tasks that are planned by the firm consists of
certain cost involved. Proper planning is required to be made so that firm is able to attain their
set of goals and objectives in appropriate manner. When a person gets to go through any type of
post that are made on social media just for seconds, then it enables to develop positive perception
within the mind of individuals. Another set of benefit that is attained with the help of social
media is that all the people who view the post can provide their views (Kumar, and et.al., 2016).
This is an effective way with the help of which firm can develop strategies to develop positive
perception within the mind of customers. When immediate steps are taken by management for
the issues identified, then they are able to develop trust, confidence and importance among
customers mind. Apart from this, another benefit is that post made by companies can be
forwarded (Macarthy, 2018). In situations when any post by a firm is liked or shared, then all the
friend who are added on the social media of that person will also get to see that post. This is an
effective way or promotional strategy to make high rate of people to know about the products,
services or offers that are provided by the organization.
Assessing the influence of social media marketing on consumers
According to Tuten and Solomon, (2017) social media has both positive and negative
impact on customers. The type of perception that are carried out by individuals are different.
Apart from this the expectations people have also differs. When consideration is made in which
people get known about the services, then it enables to make the business to meet the
requirements. For example, any of the customer post negative comment on the products or offer
made by the firm, then it causes serious issue for the firm as it will reduce the sales tremendously
(Schivinski and Dabrowski, 2016). Apart from this, due to high rate of competition, there are
strategies applied by companies who try to provide false information so that the consumption of
other firms gets reduced. In all these aspects, it is highly important to make the business in
developing trust among mind of customers. As per Chaffey, (2016) there are positive impact as
will in which all the requirements are needed to be focused. This is done by conducting frequent
research and survey on regular basis. There are frequent changes identified in taste and
preferences of individuals and it is important that changes are made accordingly. When these are
done, then it becomes helpful enough to raise the sales and profitability (Hudson and et.al.,
2016). Apart from this, employees play vital role in making customers meet their level of
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satisfaction. In conditions when workers do not have proper understanding about the set of roles
and responsibilities that has to be played by them, then they fail to clarify all the doubts that
customers. When these type of situation arise, then it make the business face serious issues.
Employees are the face of organization as they have direct interaction with customers.
The provided all the information regarding the products and services (Schivinski and Dabrowski,
2016). Apart from this, it also required to have proper support from each of the workers so that
all the goals that are set by the business can be attained. Thus, it can be stated that support from
the side of workers are highly effective in developing strong customer’s base (Dahl, 2018). In
order to taken up any decision, there are needed to gathering of information and factors that
motivate individuals to taken purchase decisions. In this context, there websites that provide the
review make by people who have already made use of the products or services. This is effective
enough for customers to know regarding the most effective product that will be able to meet their
requirements (Montalvo, 2016). When all these considerations that are made, then it makes the
business to achieve their goals and objectives in appropriate manner.
Challenges and demerits of social media marketing
Hyder, (2016) stated that one of the main issue identified by organization by making use
of social media is related with negative comments. When the type of experiences that customers
had with the services or products used were not effective, then the negative comments made
other customers also develop negative perception within their mind. All these are type of
condition because of which the rate of growth get reduced. Further, there are frequent changes
that are identified in the preferences of customers (Stephen, 2016). All these make the business
to taken up appropriate steps so that they are able to raise the level of motivation in effective
manner. With this respect, it can be motivation plays vital role in raising the performance level
and in boosting up customers moral. In order to take any purchase decisions, it is important for a
customer to have positive impact for the features and in meeting up the expectations. As per
Felix, Rauschnabel and Hinsch, (2017) one of the main benefit that is attained by the business is
that making promotions or advertisements on social media are highly cost effective. In order to
making any other type of advertisement and using tools like television, radio, newspaper, etc.
causes high cost involved. All these can be reduced efficiently as it makes the business to attain
their set of goals in such a way that all the activities related with the business are achieved and
the goals set are achieved. Apart from this, all the companies competitive with each other and for
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this purpose, they use strategies like pop ups in which customers are able to view the
advertisements immediately when they click on a like (Godey and et.al., 2016). As per the type
of perception some find it annoying and some find it interest and determine it be an effective
source for advertisement in which take purchase decisions.
RESEARCH METHODOLOGY
Research methodology is the framework of research project. In this section, researcher will
describe the different methods that will be used by him or her in attaining the aim and objectives
of research study (Taylor, Bogdan and DeVault, 2015). From the perspective of research study,
describing what kinds of research methods used by researcher is mandatory. This will help the
end users in comprehending the research more easily and efficiently. In this context, the research
methods that will be used by researcher is described below:
Research Philosophy: Research philosophy is the way through which researcher collects,
analyse and interprets the relevant data and information. Research philosophy deals with the
source, nature and knowledge of research study. It has been classified into four types which are
positivism, interpretivism, pragmatism and realism (Mackey and Gass, 2015). Each philosophy
has been used for specific purpose and for specific objectives. In the present research study,
researcher will use positivism research philosophy. As positivism research philosophy helps in
analysing the case study and assists in collection of data through which researcher would be able
to accomplish the aim and objectives of study.
Research Approach: Discussion of research approach is rudimentary in research study. Research
approach is the plan which consists of steps showing broad assumptions formulated by the
researchers to description of methods of collection of data. There are two types of research
approaches usually used by the researchers (Lewis, 2015). These are deductive and inductive
research approach. Deductive research approach is used by researchers in order to testify the
hypotheses or assumptions formulated by them. In the present research study, researcher will use
inductive research approach as it begins in analysing research questions to analysing aim and
objectives of study.
Research Design: Research design refers to the plan which helps researcher in attaining the
research questions effectively. In the present research study, researcher will use descriptive
research design in order to attain the research questions effectively.
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Research Strategy: Research strategies are the plans which helps researcher to attain the aim and
objectives of the research study (Flick, 2015). Through precise research strategies, researcher
will be able to accomplish goals and objectives of research in most precise and adequate manner.
In the present research study, researcher will use quantitative research analysis in order to
accomplish the aim and objectives of the research study. Quantitative research study helps in
analysing numerical data in effective and efficient manner.
Data Collection: Data collection is the process of gathering relevant data and information either
through surveys, questionnaires, interviews or through analysing previous researches. Data
collection is essential process and researcher has to collect data in precise manner in order to
enhance the effectiveness of the research (Silverman, 2016). In the present research study,
researcher will collect data using questionnaire method. Questionnaire will be provided to the
managers of Morrisons. The questionnaire will consists of 10 close ended questions directly
related with social media marketing and its impact on organisation.
Sampling: Sampling is the process used in statistical analysis in which a predetermined number
of observations are taken from a larger population (Ledford and Gast, 2018). It is essential and
important part of research project as analysing large population is not pragmatically possible for
researcher. In this research project, researcher will survey a sample of 15 managers working at
Morrisons. This will help him or her in analysing the data effectively and efficiently.
Data Analysis: Data analysis is the process through which researcher converts raw data into
meaningful information. In order to attain the aim and objectives of research, it is essential for
researcher to analyse the data in effective and efficient manner. In this research study, researcher
will use thematic analysis in order to analyse and interprets the research data.
TIMELINE AND ACTIVITIES
Task / Duration in week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Selection of topic
Developing the project
Preparing aims and objectives
Carrying out literature review
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Developing research
methodology
Conducting primary research
Analysis of data
Evaluation of data
Conclusion and
recommendations
Draft Submission
Final submission to tutor
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Chaffey, D., 2016. Global social media research summary 2016. Smart Insights: Social Media
Marketing.
Dahl, S., 2018. Social media marketing: Theories and applications. Sage.
De Vries, L., Gensler, S. and Leeflang, P.S., 2012. Popularity of brand posts on brand fan pages:
An investigation of the effects of social media marketing. Journal of interactive
marketing, 26(2), pp.83-91.
Felix, R., Rauschnabel, P.A. and Hinsch, C., 2017. Elements of strategic social media marketing:
A holistic framework. Journal of Business Research, 70, pp.118-126.
Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Godey, B., Manthiou, A., Pederzoli, D., Rokka, J., Aiello, G., Donvito, R. and Singh, R., 2016.
Social media marketing efforts of luxury brands: Influence on brand equity and consumer
behavior. Journal of business research, 69(12), pp.5833-5841.
Heymann-Reder, D., 2012. Social media marketing. Addison-Wesley Verlag.
Hudson, S., Huang, L., Roth, M.S. and Madden, T.J., 2016. The influence of social media
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Hyder, S., 2016. The zen of social media marketing: An easier way to build credibility, generate
buzz, and increase revenue. BenBella Books, Inc..
Kim, A.J. and Ko, E., 2012. Do social media marketing activities enhance customer equity? An
empirical study of luxury fashion brand. Journal of Business Research, 65(10), pp.1480-
1486.
Kumar, A., Bezawada, R., Rishika, R., Janakiraman, R. and Kannan, P.K., 2016. From social to
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of Marketing, 80(1), pp.7-25.
Lamberton, C. and Stephen, A.T., 2016. A thematic exploration of digital, social media, and
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inquiry. Journal of Marketing, 80(6), pp.146-172.
Ledford, J.R. and Gast, D.L., 2018. Single case research methodology: Applications in special
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Lewis, S., 2015. Qualitative inquiry and research design: Choosing among five
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