How Social Media Marketing Impacts Restaurant Purchases in London

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This report investigates the impact of social media marketing strategies on consumer purchasing decision-making within the restaurant sector in London. It explores the evolution of social media's influence, highlighting the shift from mass media to online platforms like Facebook, Instagram, and others. The study examines the customer decision-making process, the role of user-generated content, and the specific social media platforms and marketing strategies employed by London restaurants. The research addresses the research problems by comparing marketing strategies on social media and mass media, analyzing how reviews and valence on social media influence consumer choices, and investigating the data processing and selection consumers use before making purchasing decisions. The report also includes a literature review on social media and social media marketing, consumer behavior, and the customer decision-making model. The significance of the study lies in its contribution to understanding how restaurants can leverage social media to attract and retain customers in a highly competitive market, with the goal of providing insights into effective social media marketing practices.
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How Social Media Marketing Strategies Influence Consumer Purchasing Decision Making
in The Restaurant Sector in London
Table of Contents
INTRODUCTION: 1
1. BACKGROUND OF THE STUDY: 1
2.RATIONALE OF THE CHOSEN TOPIC: 2
3.PURPOSE OF UNDERTAKING THE STUDY: 3
4.RESEARCH PROBLEMS: 4
5.RESEARCH QUESTIONS: 4
6.RESEARCH AIM AND OBJECTIVES: 5
7.SIGNIFICANCE OF THE STUDY: 6
LITERATURE REVIEW: 6
1.SOCIAL MEDIA: 6
2.SOCIAL MEDIA MARKETING: 9
DEFINING DIFFERENCE BETWEEN SOCIAL MEDIA MARKETING STRATEGIES VERSUS MASS MEDIA MARKETING
STRATEGIES: 10
3.THE CONSUMERS: 13
THE CUSTOMER DECISION-MAKING MODEL: 13
INFLUENCE OF SOCIAL MEDIA MARKETING STRATEGIES ON THE CUSTOMER DECISION MAKING- PROCESS: 19
THE USER-GENERATED CONTENT: 22
MOSTLY USED SOCIAL MEDIA PLATFORMS USED BY CONSUMERS FOR PURCHASING DECISION MAKING IN THE
RESTAURANT SECTOR IN LONDON: 24
COMMONLY USED SOCIAL MEDIA MARKETING STRATEGIES BY RESTAURANTS IN LONDON: 27
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Introduction:
1. Background of the study:
Social media marketing is a blend of strategies used over the internet which guides buyers
and imminent shoppers to connect insights, getting knowledge about goods and their
experiences with others (Kaplan and Heinlein 2009). Online media sites like Facebook,
Twitter, WhatsApp YouTube, Instagram etc. have achieved popularity for searching
restaurant options for consumers in London and has the ability to influence different stages
of their decision-making process. So, restaurants in London are using up-to-date social
media marketing strategies to enhance services, infrastructure and facilities in eatery
industry. Lately the restaurant sector in the UK got developed than ever before. Shopper
consumption on eateries and bistros reached to 76 billion British pounds in 2016 and the
quantity of restaurants has continuously improved and contributed more than 16.5 billion
British pounds to the business economy in 2016 (Facts, 2018). Social media has become the
storehouse with the intensity of information exchanged to a huge group of people. It means
consumer's sentiment now have awesome impact and may influence the option of choices.
Now a day, consumers can consult about items and services they will recommend to other
users to maintain a strategic distance from (Atwong, 2015). Purchasers have constantly
esteemed feelings communicated specifically to them. Information exchange is the most
essential factors behind one fourth to half of all buying choices (Goldsmith, 2013). Social
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media marketing is advancing and ending up promptly accessible and available. Accordingly,
eateries are using these new marketing strategies to show signs of improved access to the
purchasing decision on consumers.
2.Rationale of the chosen topic:
People are using around 2.1 billion Smartphone’s around the world (Statista, 2018) with
chances of almost half of them being the frequent restaurant visitors. Since social media has
been growing rapidly, the restaurant industry has been exploring this area extensively.
Given that social media provides restaurant consumers with an opportunity to share their
dining experiences, several studies have examined the impact of social media on consumer
restaurant selection (Tran, 2015). As a part of the social media umbrella, online reviews are
significant factors that influence consumer restaurant selection (Park & Nicolau, 2015; Yang,
Hlee, Lee, Koo, 2017). Also, a vast lump of half of visitors utilize Facebook while looking for
eateries and an enormous amount of 15.2 million individuals goes to social media websites
before settling on a buy choice (Smart Brief, 2018). 61% of organizations with under 10
employees concurred that online networking has reduced their promoting costs and 73% of
participants likewise said that website traffic amplified just 6.5 hours given on social media
advertising (Weigel, 2018). Nearly nine out of ten restaurants used social networking sites in
2016 (Emarketer.com, 2018). The quantity of eatery openings in London hit a record in the
previous years but closures shot up by a third, underlining the intense competition in the UK
capital’s dining scene (Financial Time, 2018). Top reviewed restaurants in London like Leon,
Nando’s, The Ledbury, The Golden Chippy, Baileys Fish and Chips, Amrutha Lounge etc. are
continuously working on their online marketing to attract more customers than ever before
(Tandfonline.com, 2018). So, it seemed very reasoning to do research on how social media
marketing strategies influence consumer purchasing decision making in the restaurant
sector in London.
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3.Purpose of undertaking the study:
The 21st century has witnessed the significant influence of social media on consumer
behavior that is affecting awareness of products, purchase behavior, opinions, and
evaluation of products (Mangold & Faulds, 2009). Social media has provided the most
effective means of communication for organizations to connect with consumers on a
worldwide scale. With social media rising rapidly within general demographics, many
companies have noticed the potential of social media, and they have changed their
marketing strategies to take advantage of these new opportunities. Consequently, social
media enables consumers to share their purchasing experiences through electronic word of
mouth (eWOM) to create a reliable source for other consumers (Tran, 2015). Essentially,
this new form of web communication offers the sharing of information between service
providers and consumers via the Internet (Pantelidis, 2010). This project will be done in
perception of customers and expected to clarify the effects of social media marketing
strategies on various stages of consumers decision-making process, by discovering how
restaurant visitors take social media marketing strategies in the whole procedure of
decision making in the restaurant sector in London. Companies can learn directly from their
customers (Goldsmith, 2013). The research would assist companies to gain knowledge from
the customers point of view to distinguish potential entanglements and options by means of
social media marketing strategies like creating accurate approach to influence into the
decision-making process at the main time or to have a better idea of why companies social
media advertising efforts are not achieving much success as they would have estimated
beforehand. Retrieving this valuable information from consumers can help companies to
improve the social media marketing strategies to attract more customers.
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4.Research problems:
The development of the social media and online marketing strategies has completely
changed the way restaurants in London promote their products and services in recent
years. Consumer purchasing decision Making in the restaurant sector in London is
influenced by several factors like reviews and valence on social media. Customer's decisions
on fine feasting generally have strife with numerous options and they pick the best choice
that could augment their requirements. The vast majority of customers pick the eatery via
seeking post encounters of different purchasers via web-based networking media, for
example Pantip, TripAdvisor, Facebook page, and so on. These days social media are a
critical channel that impact to shoppers' decision choice by sharing remark about their
feasting experience in each restaurant. Because of that restaurants in London pretending to
attract their target customer by creating image on social media site by creative marketing
strategies. Promoting by mass media is not considered now a day as great as it was before,
however despite everything they contain have a specific impact in activating or catching
shoppers' consideration. Antagonistically, the information gained from social media has an
extraordinary effect on people to understand their demands or needs which would help out
for purchasing and have great influence over consumer purchasing decision making in the
restaurant sector in London.
5.Research questions:
What are the main contrasts between marketing strategies on social media and mass
media?
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How numbers of review and valence associated with different social media platforms
affect in customer purchasing decision-making process in the Restaurant Sector in
London?
How do consumers in London go through, process, and select the data from the social
media before deciding on their purchase on the Restaurant sector?
6.Research aim and objectives:
Eating out of home has become an integral part of people’s lives. This is because people
have changed their attitudes about food and also due to an increase in disposable income
(Capstick, 2011). Eating out normally takes place in restaurants which have become an
important part of our everyday lifestyles and offers ‘a place to relax and enjoy the company
of family, friends, colleagues, and business associates’ (Walker, 2014; p. 160.). Indeed, a
restaurant takes a human need - the act of eating - and transforms it into a civilized ritual
involving hospitality, imagination, satisfaction, graciousness, and warmth (Gunasekeran,
1992).Buyer conduct is a very broad and wide concept that is difficult to accumulate,
investigate and analyze the vital information and findings into a single project; accordingly,
the research is limited the concentration in different stages associated with the decision-
making process alongside social media advertising strategies influence consumer purchasing
decision making in the restaurant sector in London through social media. The research goal
is -
To figure out specific marketing strategies made social media more effective platforms
for restaurants in London to draw consumers attention than mass media channels.
To identify and analyze determinants which motivate consumer purchasing decision
making in the restaurant sector in London.
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To investigate changes social media marketing strategies has conveyed to customers in
various phases of their decision making and clarify when, why and how social media
marketing strategies have affected decision making process of consumer.
7.Significance of the study:
Wilkie (1994) claimed that a great deal of the cognitive and physical effort for purchasing
products ensue before the actual buying behavior. Therefore, marketers of any type ought
to know how consumers are influenced in the pre-purchase stage (Chen and Dubinsky,
2003). As discussed above the restaurant industry is highly competitive. In order to attract
and retain customers, restaurateurs ought to have a deep understanding of the wants,
needs, and perceptions of customers who most likely belong to the segment that will
choose their establishment (Gregoire et al., 1995).In the research determinants which
motivate consumer purchasing decision making will be conceptualized into a coordinated
framework to analyze consequence of social media promoting strategies into purchaser
behavior while choosing eateries in London to visit. The findings will reveal what specific
marketing strategies made consumers progressively moving far from mass media marketing
and making dependent on searching out on social media sites to look data related to
various restaurants since they consider it relatable and advantageous which encourages
them in better choice - making resulting minimum time wastage.
Literature review:
1.Social Media:
Social Media is the group of online interchanges channels devoted to network-based info,
communication, content-sharing and coordinated effort. Still scholars have many
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controversies and exchanges in regard to all-inclusive definition of social media because it
has been changing and developing with the advancement of social networking sites. (Brian
Solis, 2018). Sajithra Koli (2013) have shown how social media is framed in terms of
interconnected substances – social connection, components and correspondence media.
Social media has made another scene in supporting the socialization of data (Brian Solis,
2018), accordingly it has improved correspondence stream by making it less demanding and
to more individuals, and to spread helpful data with conceivably immense online gatherings
of people (Smith and Zook 2011). Safko (2012) agreed with the concept proposed by Kaplan
and Haenlein (2009), as they have defined social media as the “activities, practices, and
behaviors among communities of people who gather online to share information,
knowledge, and opinions using conversational media”. In any case, social media facilitates
the stream of correspondence by empowering commitments and input from everybody
who is intrigued, and it is a two-way discussion when contrasting with the customary media
since social media platforms are open up to criticism and support (Weigel, 2018).
In regards of the term Social media, Tim O'Reilly, the founder of O'Reilly media, has coined
that "Social Media is the business revolution in the computer industry caused by the move
to the Internet as platform, and an attempt to understand the rules for success on that new
platform." He has further provided a general business aspect in relations of Web 2.0 as the
“harnessing of collective intelligence”, in which Web 2.0 provides platforms and fills the
Web with user-generated content where all individuals – the former audience are able to
take part in instead of important decisions made by a few people. (O'Reilly 2006.)
Alternatively, Social Media is a platform whereby content and applications are continuously
modified and exchanged by all users in participatory and collaborative manner, and no
longer merely created and published by individuals (Kaplan and Haenlein 2009).
Many researchers have come across the interchangeable usage of the terms “social media”
and “Web2.0” (Safko and Brake 2009, 6; Kaplan and Haenlein 2009, 60); however, Safko and
Brake (2009, 6) have stated out that these two terms are closely related yet not exactly
synonymous, and they differ in terms of usage. For the purpose of this research, and in
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order to avoid any confusion, the above mentioned terms will be defined, despite the fact
that social media is the central gravity of the research.
There are still many ongoing debates and discussions regarding social media’s universal
definition; as social media has been transforming and merging into the evolving
development of New Media (Solis 2010). Regardless of what the standardized definition per
se would be, many of the existing studies and articles have stated out the common core
purpose of social media.
Figure 1: Social media components (Dann and Dann 2011).
According to figure 1, Dann and Dann (2011) have demonstrated how social media is
formed based upon the interconnected elements social interaction, content, and
communication media. Social media has created a new landscape in supporting the
socialization of information (Solis 2007), as a result it has facilitated and enhanced
communication flow by making it easier and to more people, and to spread useful
information with potentially vast online audiences (Smith and Zook 2011, 10), in which the
conversation may be taken place on media locally but lead to a global impact.
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Safko and Brake (2009) have supported the concept proposed by Kaplan and Haenlein
(2009), as they have referred social media to “activities, practices, and behaviors among
communities of people who gather online to share information, knowledge, and opinions
using conversational media”. Nonetheless, social media expedites the flow of
communication by encouraging contributions and feedback from everyone who is
interested, and it is a two-way conversation when comparing to the traditional media
because social media outlets are open up to feedback and participation (Mayfield 2008).
At its essence, social media describes the powerful new ways individuals are engaging with
content on the Internet, and vice versa; that is, as many have observed, social media is user-
centric in which it emphasizes and facilitates the process of creating, commenting, editing
and sharing. More importantly, social media is the democratization of content (Solis 2007).
2.Social Media marketing:
Social media marketing means utilizing social media platforms as marketing tools. It is
advanced process which enables individuals to advertise new item, services or facilities
through social media platforms which has a much larger community than the mass media
advertising (Weinberg,2009).Mass media advertisements today are not that much effective
as these was before because of less chance to deliver massage to the potential customers
(Weber,2013).In social networking platforms group of a people sharing common interest
gather for exchanging opinions, reviews and recommendations which lefts a great impacts
on the potential customers for their next purchasing decision. As a result, promoting
products and services through creative social media marketing strategies became more
important than ever before (Weber,2013).
Social Media Marketing is an umbrella term that can be described as the utilization of social
media platforms as marketing tools. According to Weinberg (2009), he refers social media
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marketing as leveraging the ‘social’ through the ‘media’ to ‘market’ businesses’
constituents; in other words, it is a process in empowering individuals to promote their
websites, products, and/or services through online social channels, to interact with and to
tap into a much larger community that may not have been available via traditional
advertising channels.
It is no longer a striking fact that most of the advertisements via mass media are not as
efficient as in the past, because by advertising through the mass, the message is generally
reaching far more people than the potential customer intended to reach (Weber 2009;
Weinberg 2009). Social web is where people with a common interest can gather to share
thoughts, comments, and ideas; hence, instead of continuing as broadcasters, marketers
should become aggregators of customer communities; that is, the Web should not be
considered as a mere advertising channel, it is a place where marketers can listen and
respond to communities, review contents, as well as promote a particular piece of content
within the vast social sphere (community building) (Weber 2009).
Defining difference between Social Media marketing strategies versus Mass Media
marketing strategies:
The major difference between mass media and social media is this; the mass media puts the
audience in a passive position. Social media puts the audience at the center. People are
both the audience and the content creator, it provides a unique experience of social
collaboration and social interaction.
Over the last years, social media has become an inseparable part of our lives, every day
more and more people are joining social media networks, they create content, interact with
each other, and collaborate with each other. Even brands are on social media, they organize
social media marketing campaigns and interact with their existing or potential customers.
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Still question remains at large which form of media influences the public and shapes the
public opinion best.
In order to gain a better position in the transition from traditional marketing approach to
social media marketing, marketers will have to, firstly, change their marketing mindset.
Social media platforms have radically changed the approach of segmentation in implanting
marketing strategy, instead of easily identified demographics, such as age, gender, or
income are relatively less important, it groups people by what they do, think, like, and
dislike, and more importantly by their behaviors, also known as behavioral targeting.
(Weber 2009).
Many marketing experts (Drury 2008; Mayfield 2008; Weber 2009; Weinberg 2009) have
always emphasized that since marketing via social media is rather about receiving and
exchanging perceptions and ideas, which makes social media marketing no longer one
dimensional but a two-way process engaging a brand and an audience (Drury 2008) as well
as a creation of increasingly visualize contents (Weber 2009). Oftentimes, content is a
critical factor in achieving an effective marketing via social media; however, according to
Curata’s “B2B Marketing Trends Survey 2012 Report” (MarketingProfs 2012), companies
seem to encounter challenges in creating original content, having time to create it, and
finding high-quality content.
Drury (2008) has argued that with social media in particular, the content of advertising and
branding must be provided as relevant value-added content that is more about consumer,
rather than brash product placement. When companies help their customers through social
media outlets, it is more likely to build a long-term relationship, which will in turn propel
and leverage the brand awareness and growth (Young Entrepreneur Council 2012)
Social media platforms serve as a tool for consumers who may not have an outlet or
support system to find one another; brands like Weight Watchers and Nike Women have
demonstrated how valuable social networking sites can be for bridging people who are
facing similar daily obstacles (Young Entrepreneur Council 2012).
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