Challenges for Small Event Management Companies and Social Media Use

This report investigates the challenges encountered by small event management companies in leveraging social media to foster customer loyalty. It begins with a literature review that highlights the opportunities and benefits of social media engagement, emphasizing the importance of understanding consumer expectations. The research explores the impact of social media on small businesses, the challenges faced in using social media, and the gaps in existing research. The study aims to identify the specific challenges small event management companies face in adopting social media strategies. Key areas of focus include the relationship between social media and online sales, the risks of social media marketing, and the value of digital marketing for customer relationships. The report uses an interpretivism research philosophy and an inductive approach, employing a descriptive research design with a literature review and focus group interviews for data collection and thematic analysis. Ethical considerations are also addressed to ensure the integrity of the research. The report concludes by analyzing how product and service perceptions impact customer loyalty and satisfaction.

1
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 important content along with word of
mouth communication from other consumers and extrinsic reinforces related to
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
Figure 1: Conceptual Framework
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.
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Nobre, H. and Silva, D., 2014. Social network marketing strategy and SME
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14.
Research aim
To explore the challenges faced by small event management
companies while adopting social media strategies to increase
customer loyalty.