Impact of Social Media on Customer Relationship Management

This report examines the influence of social media, particularly Facebook and Twitter, on Customer Relationship Management (CRM) within Samsung Mobile. The research explores the role of social media in enhancing customer relationships, focusing on how Samsung can improve its CRM practices through these platforms. The report investigates the competitive landscape, highlighting the intense competition between Samsung and Apple, and the importance of customer retention. It includes a literature review on the significance of CRM, the use of social media as a marketing tool, and the interconnectedness of hardware and software in the mobile industry. The methodology involves quantitative research for primary data and qualitative data for literature review, with a descriptive design and a deductive approach. The report presents findings on the use of social media for customer communication, the types of customer inquiries, and the responsiveness of Samsung. It concludes with recommendations for Samsung to optimize its social media strategies for improved CRM.

Research Methods for
Strategic Manager

Table of Contents
Table of Contents 1
Introduction 2
1.1 Select research question 3
1.2 Explain the factors that contribute to the process of successful research question selection
3
1.3 Justify your choice of research question 5
LO 2: Literature review 6
2.1 Conduct research to find literature review relevant to research question 6
2.2 Undertake a critical review of the key literature for inclusion in research proposal 7
LO 3: Techniques used to interpret data in research proposal 9
3.1 Evaluate techniques for use with quantitative data in research proposal 9
3.2 Evaluate techniques for use with qualitative data in research proposal 10
LO 4: Appropriate methodology to research the question 10
4.1 Evaluate appropriate research methodologies in terms of research question 10
4.2 Choose an appropriate methodology in terms of the research question 12
4.3 Justify the methodology selected in terms of the research question 12
LO 5: Presenting the findings of research proposal 14
5.1 Recording findings on research a question, literature review and methodology 14
5.2 Summarizing the findings 15
5.3 Presenting findings using suitable methods 16
5.4 Critically analyse the findings 17
Limitations 18
Further areas of research 19
Conclusion 19
References 20
Appendix 1 23
24
Appendix 2 26
Appendix 3 27
Appendix 4 30
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Introduction
In the modern era, social media has emerged as one of the biggest and most potential platforms
to advertise and market products and services. Nowadays, most of the business have started
using social media such as Facebook and Twitter as marketing tools. On the other hand,
competition among business has become so intense that businesses are required to retain their
customers. In the present scenario, organizations seek for the ways through which they can
enhance their customer base and manage relationship with them. This research will reflect that
how the use of social media can help in developing better relationship with all the customers.
Samsung is one of the leading manufacturers of smartphone in the current market. Samsung is
facing tough competition from Apple. Further, both these brands have emerged as the biggest
rivals of each other. In order to maintain its existing market share and customer base, Samsung
Mobile is required to make sure that it develops effective relationship with all its customers. This
report will focus on whether it is possible for Samsung to improve Customer Relationship
Management using social media.
Background
Competition among businesses in the mobile sector has become very intense and it is not easy
for brands such as Samsung to retain all its customers. In the present scenario, mobile companies
such as Sony, HTC have started to use social media as an important tool to manage relationship
with all its customers. The present study will demonstrate the benefits of social networking sites
Facebook and Twitter in developing good relationship with customers. Therefore, this study will
explain whether the use of Facebook and Twitter can help in retaining customers and developing
relationship with them.
1.1 Select research question
Research question helps in directing the efforts of a researcher and enables him to collect as well
as evaluate sources. In order to develop a research question, an orderly process is followed. This
comprises of the following steps:
1. Considering needs and interests of the readers
2. Reflecting on the role of the researcher
3. Generating potential research questions
4. Selection of a preliminary research question
5. Refining the preliminary question to arrive at the final research question
Research title ‘Use of social media to improve Customer Relationship Management in Samsung
Mobile UK”
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In the present study Quantitative research would be used to assess the primary data. On
the other hand, qualitative data will be used to assess literature review. Descriptive design will be
used as the researcher aims at determining the impact of social media on customer relationship
management. Deductive approach will be used as more specific data will be required. In terms
iof of philosophy intrepretivism philosophy will be used.
1.2 Explain the factors that contribute to the process of successful research question
selection
One of the main factors that contributed in selecting this research question is raising importance
of social media in the market. In the present era, every business enterprise strongly focuses on
using this tool for enhancing awareness in the market. Further, it has assisted every business to
attract large number of customers and in turn, it is possible to grab the range of opportunities.
Factors contributing to the process of successful research question selection are:
Interest: I find opportunity to conduct research on Social Media to improve Customer
Relationship Management. I was also interested in knowing the use of social media in managing
customer relations. Moreover, social media tools are well used in marketing field. Before
selecting this topic I have carried out a comparative study on the social media used by Apple and
Samsung. Further it was found that Samsung is more actively involved in social media activities
in order to communicate with all its customers. Apple is using social media tools such as
YouTube to inform people about its new products and services. On the other side of this,
Samsung use Facebook, Twitter and YouTube to stay in touch with customers and develop a
better relation with them. This has developed my interest with regards to the topic under
investigation.
Curiosity: Being a management student, I am curious about knowing the impacts of social media
in every field of management; therefore, I have chosen this topic for the present research
investigation. I was very eager to know what that kind of impact Facebook and Twitter have on
customer relationship management of Samsung. Apple is one of the biggest brands in the world
and facing intense competition from Samsung but they totally avoided to use Facebook and
Twitter as CRM tools. This developed my curiosity to know whether it is because of the use of
Facebook and Twitter enabled Samsung to develop good and long lasting relation with its
customers to reach in such position.
Aim and objectives;
To determine how social media can impact customer relationship management within Samsung.
To recommended ways through which Samsung can improve its customer relationship
management.
1.3 Justify your choice of research question
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All the research questions have been selected by considering the nature of study. Further, main
stress is on assessing the impact of social media in enhancing the customer relationship
management which has been accomplished by forming different type of questions. All the
questions are based on social media and the ways through which Samsung can enhance its social
media practices with the motive to enhance customer relationship management.
Scope of study
The present study will only focus on the impact of social media sites Facebook and Twitter on
customer relationship management of Samsung. Since free access to social media enabled
researcher to connect with intended organisation and investigate their activities with their
customers on social sites. This study will focus on Samsung operation in London and researcher
have the opportunity to visit Samsung store to investigate how the organisation uses the above
stated social networking sites and what kind of information it shares with customers or vice-
versa. Rather than making this study too broad by focusing in all across UK, this study will be
based on London and that will help researcher to complete full project within reasonable time
limit.
Rational of the study
The rationale behind carrying out this research is to understand the role of social media in
improving customer relationship management (CRM). Previous studies has shown that in order
to survive and grow in situation of such intense competition, businesses are required to adopt
effective CRM practises and the benefit of such practises is that they make customers loyal
towards a particular brand (Buttle, 2009) . Further, it can be stated that with the passage of time,
the market has become highly competitive. If, better relationship is not developed between a
brand and its customers then its long term profitability gets affected. Strong relation with
customers helps them to stay loyal and not to opt for the products and services offered by any
other market players.
Moreover, according to Dutta et al (2011) existing CRM practises such as communicating with
customers through Email and letter are not enough to increase the brand awareness and support
in improving customer experience in 21st century as a result of change in communication
methods between person to person. This study prove that a fast and more reliable method of
communication is necessary for the company to stay connected with their customer and social
media can be an optimum solution for this problem. However, previous studies focused on
customer relationship management and its effect on the business, but there is no particular study
carried out that can show how Facebook and Twitter can help businesses to build a strong
relationship with their customers.
As a result this study will help business like Samsung in understanding how the use of social
media such as Facebook and Twitter can help them to improve their customer relationship
management.
Research questions
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What is the significance and benefits of using Facebook and Twitter in customer relationship
management?
Do customers use social media or email more frequently to communicate with Samsung?
Do customers ask more about software or hardware related question?
What is the Length of time taken by Samsung to respond customer’s queries?
LO 2: Literature review
2.1 Conduct research to find literature review relevant to research question
Software and hardware
Hardware comprises of any physical device which is used with the computer system. This
includes the physical parts of a computer system. In contrast to this, software is defined as
installation of a collection of code to the hard drive of computer. Commonly, it is known as
programs which comprises of electronic instructions (DeMicheli and Sami, 2013). These
instructions provide direction to the hardware for performing certain tasks. As per the views of
Sucaet and Waelput, (2014), hardware and software are interconnected and interdependent
(Sucaet and Waelput, 2014). Wu and et.al., (2014) state that software systems are divided into
two categories namely, application software and system software. System software assists
computer hardware (Wu and et.al., 2014). In contrast to this, application software enables the
users to perform tasks such as web browsing, word processing etc.
Significant benefit of Customers Relationship Management
Customer relationship management (CRM) can be defined as the action plan and strategies
which organization implements in order to interact with customers and analyse their need and
demand. One of the main aims behind using CRM is to build and enhance business relationship
with all the customers (Wagner and Zubey, 2006).
This helps business to get aware of the changing market trends and needs of customers.
Companies use tools such as television, newspapers and magazines to interact with all its
customers. Further, it can be stated that advertisement of mobile company’s new products and
offers are being displayed on these media (Gupta and Lehmann, 2005). The result of this is that
more and more people become aware and are encouraged to buy particular products. It can be
also stated that cost of using traditional tools of advertisement is very high but it can make a
great impact on the mind of customers. (Note: Remaining part covered in appendix 2)
Social media as CRM tools
Social media
Social media refers to the collective online communication channels which are used for the
purpose of community based interaction and input. It also finds use for content sharing. Kumar,
(2010) explored different types of social media. These include social networking, social curation,
micro blogging, social bookmarking etc. some prominent examples of social media are facebook,
twitter, Google plus, Pinterest etc. as per the views of Libai and et. al., (2010) social media has
become an integral part of marketing. Organizations use it as a tool for promotion of their
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brands, marketing of products as well as connecting with their customers (Libai and et. al.,
2010).
Lin and Lee, (2005) defined social media as a collection of internet based applications that
enable creating and exchanging user- generated content (Lin and Lee, 2005). However,
Nambisan and Baron, (2007)have stated that social media refers to electronic tools which are
comparatively inexpensive and are widely used for publishing and accessing information. Payne
and Frow, (2005) asserted that social media marketing assists organizations to take advantage of
social networking. This helps in enhancing the brand exposure. Further, it also assists in
broadening the customer reach (Payne and Frow, 2005).
As per the view of Gupta and Lehmann, (2005) the ability to connect and share becomes
limitless as there are millions of people which access kind of online social networking sites. The
impact of social media on businesses is that they are able to create a customer experience which
was never ever created before. Libai and et. al., (2010) has evaluated that nowadays companies
are seeking various kinds of ways through which they can integrate social media with their
customer relationship management practises. The impact of this will be directly on the sales and
profitability of business enterprise.
(Note: Remaining part covered in appendix 3)
2.2 Undertake a critical review of the key literature for inclusion in research proposal
The impact of Facebook and Twitter on Customer Relationship Management
Smartphone industry is one of the most competitive business sectors in the world; in fact
smartphone is the fastest growing corporate sector in the history business a record that was
previously held by computing (Regalado, 2013). Nowadays, billions of people use Facebook and
roughly a third only login with their smartphone (THE VERGE, 2014). As a result of such
intense completion Mobile phones companies such as LG, Sony and Samsung are using social
media platforms to interact with their customers (Aula, 2010). These companies have developed
their pages on networking sites such as Facebook and twitter with the help of which market
presence of enterprises has been enhanced easily. Firms are having direct interaction with its
target market on social networking sites and this is supporting in sharing crucial information
(Gupta et al, 2011).Moreover, such networking sites enables rapid, viral distribution of offers
and content that may reach beyond what could be done in traditional expensive methods
(IBM,2011). Information linked with product development, pricing of products is shared with
target market on the basis of which purchase decision is being taken by customers and this has
supported business in a positive manner (Facebook, 2015). Further, Facebook has started to
integrate all its messenger services with advertisement. This has resulted in generation of money
as well as expanding itself in other areas.
On the other side of this, it can be explained that Samsung uploads videos, images and
information about its new products on Facebook. The video of Samsung galaxy S6 edge+ got
more than 197 thousand likes and 8.9 thousand comments from various people (Introducing the
new #GalaxyS6edge+., 2015). Both negative and positive comments were made by individuals
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on designs and features of the phones. This information will become very important at the time
of developing new products. For example, some people argued that they have been very loyal
customers of Samsung and now they are not as satisfied as they used to be with product quality
and features of the Galaxy S6. Further, customers also explain reason behind their dissatisfaction
of Galaxy S6 and it is mostly because of the removal of waterproof feature that Samsung had
introduced with previous Galaxy S5 device. This information can help Samsung to determine
whether or not they want to include this feature in their upcoming smartphone. However, Apple
doesn’t use Facebook and Twitter to provide information to their customers in a way that
Samsung does (the Telegraph, 2013) instead they use YouTube and their own held media event
known as ‘Keynote’ for such purpose (Apple September Keynote event available on YouTube).
For example, Apple provided information such as launch of iPhone 6s and many other devices
during September 2015 media event and uploaded that video on YouTube.
Other than this, with the help of photos and videos on Twitter, it provides information such as
end of a season, sales and discounts on mobile phones etc. (Samsung Twitter Handle, 2015).
Therefore, it can be stated that uses of social media has helped mobile phone companies to
inform customers about new offers and products. This also helps in developing effective and
long term relationship between companies and all their customers. As identified by IBM social
networking sites have positive impact on customer relationship management of companies
because such management is less costly but more effective than the traditional CRM methods.
Moreover, Facebook and Twitter allow businesses to stay in touch with their customers and
enabled companies to understand customers’ need and demand. Collecting information through
Facebook and Twitter smartphone companies can deliver products as per the need of people in
the market and as a result they can achieve greater customers’ satisfaction.
However, a strong relationship management with customers is not the only solution to survive in
the current market because in term of smartphone industry innovation also an important factors
that a company must focus to survive in current intense market condition (Atkinson, 2013).
Moreover, with the action of Apple it is also evident that Facebook and Twitter are not the only
effective tools to build strong SCRM; this is because tools such as YouTube or perhaps live
event with customers can be as helpful as Facebook and Twitter to build a viable CRM.
(Note: Remaining part covered in appendix 4)
LO 3: Techniques used to interpret data in research proposal
3.1 Evaluate techniques for use with quantitative data in research proposal
There are various techniques through which data can be collected for quantitative researches.
Further, it can be stated that questionnaire and survey method are some important techniques
used to collect quantitative data. One of the main advantages of using questionnaire is that it can
be very helpful in collecting large amount of useful information in very short span of time
(Gupta et al, 2011). On the other hand, its disadvantage is that it is not necessary that respondents
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provide truthful information. Survey method can be also used to collect quantitative data for
carrying out research. Further, it can be stated that survey can be easily developed in less time as
compared to other methods of data collection. Its disadvantage is that the boredom or lack of
subject knowledge can result in irrelevant information.
3.2 Evaluate techniques for use with qualitative data in research proposal
In order to collect qualitative data, techniques such as interview and focus group can be used.
The advantage of interview is that it can help in collecting new and fresh information with
regards to topic under investigation whereas; its disadvantage is that interviews can be very
costly in terms of time and money. On the other side of this, advantage of focus group is that it
does not encourage any kind of partiality at the time of data collection. Its disadvantage is that it
is not effective in providing in-depth information as compared to other techniques of data
collection (Saunders et al, 2009).
LO 4: Appropriate methodology to research the question
4.1 Evaluate appropriate research methodologies in terms of research question
It is the section of research that consists of the tools and techniques which will be used to carry
out research. Using right methodologies helps in obtaining the best possible results for any study.
On the basis of this section, the impact on social media in enhancing customer relationship
management will be analysed. The tools and techniques which will be used in this research are
mentioned below as:
Research philosophy: Positivism and interpretivism are the two main types of research
philosophies which are used in carrying out a study. Selection of these philosophies is based on
the nature of research that will allow researcher to conduct an in-depth analysis into literature
(Miller And Birch, 2012). For this research, interpretivism philosophy will be selected in order
to find out “significance and benefits of using Facebook and Twitter in customer relationship
management” which one of the important research question.
Research approach: Research approach is defined as a plan of actions or strategies which is
used to accomplish the aim and objectives of a study (Kothari, 2011). Further, inductive and
deductive are the two main approaches of research. The present investigation will make the use
of deductive investigation as it allows research to make specific finding from general
investigation. Deductive approach will be selected to gain more specific information to address
one of the research questions which is “How tools such as Facebook and Twitter can impact
customer relationship management within Samsung?”
Research design: Research design depicts the framework used to carry out a research and attain
its objectives (Chapman and McNeill, 2004). There are various kinds of research design such as
exploratory, descriptive, casual, cause and effect, experimental etc. Using descriptive design
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researcher will be able to gain more appropriate data on what kind of impact social media have
on CRM practises of the selected organization.
Research type: Qualitative and quantitative are the two common types of research which are
used to carry out a study. Selected research will help in finding out the best possible answer for
all the above stated research questions.
Sampling: Sampling can be defined as a process in which researcher selects appropriate sample
size to collect primary data. The sample size and technique will help in determining important
ways through which CRM practises can be improved with the help of social tools.
4.2 Choose an appropriate methodology in terms of the research question
Research philosophy: In the present study, intrepretivism philosophy will be used to understand
the use of social media to improve customer relationship management. The research philosophy
is suitable one that will help researcher to define a way to conduct present investigation.
Research approach: In the present study, deductive approach will be used as more specific
information will be required in context of using social media to improve customer relationship
management (Miller and Birch, 2012). Deductive research approach is going to be used for the
present research to know the significant impacts of social media tools and its role in improving
CRM.
Research design: In context of the present study, descriptive design will be used as the
researcher aims at determining the impact of social media on customer relationship management.
Research type: The present research will be carried out in both the above stated types such as
qualitative and quantitative. In this research, numeric and non-numeric data will be presented.
Quantitative research would be used to assess the primary data. On the other hand, qualitative
data will be used to assess literature review.
Reliability and validity
Reliability refers to the magnitude of consistency and stability in the results produced by an
assessment tool. In the present research, reliability will be maintained as effective tools were
used for collecting the data. Moreover, the information has been collected from reliable and
authentic sources. Only those books, journals and articles which has been published after 2005
are taken into consideration. The researcher has well taken care of all the ethical issues
associated with this study. It can be stated that the information collected from various sources
has been secured in the best possible manner. Proper permission from all respondents has been
taken before approaching them.
4.3 Justify the methodology selected in terms of the research question
The selected research methodologies will be more suitable and appropriate in order to address
the questions of research. This study focuses on to understand the significance and benefit of
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using social media to improve customer relationship management. The selected methodologies
will help research to obtain more accurate and reliable information regarding the impact of social
media on customer relationship management. For the collection of data for the present
investigation, primary and secondary data are going to be used that help in generating better
findings. Along with this, annual report of Samsung UK will also be taken into consideration to
identify the use of social media in order to develop strong relationship with customers.
Moreover, researcher will actively observe Facebook and Twitter communication process of both
customers and the Samsung through official Facebook and Twitter page of Samsung mobile to
collect information about such communication. Using both the sources of data collection will
help the scholar to get more specific and accurate results regarding the topic under
investigations. The entire part of research methodologies has been selected after carrying out in
depth analysis of the entire study (Chilisa, 2011). Along with the tabular presentation are going
to be used to assess the information and to conclude the factors. Therefore, it can be stated that
methodologies chosen will help in answering all the questions of this study in the best possible
manner.
Research philosophy: One of the main reasons behind choosing intrepretivism philosophy is that
it will help in exploring what kind of impact social media has on customer relationship practises
of Samsung. In addition to this, with the help of this philosophy, researcher will be able to
interpret findings easily.
Research approach: The rationale behind using deductive approach is that it will assist in getting
more specific information regarding the impact of social media on customer relationship
management of Samsung. On the other hand, inductive approach will not be used because it will
provide more generalized information which is not suitable for this study.
Research design: Descriptive design will help the scholar to understand and describe the various
elements associated with the study. Along with this, it will also help in in-depth analysis of the
impact of social media on customer relationship management.
Research type: Qualitative technique will be used to present non-numeric data and quantitative
technique will be used to present numeric data. Further, findings of primary research will be
presented with the help of various graphs and pie charts.
Sampling: Sampling can be defined as a process in which researcher selects appropriate sample
size to collect primary data. In the present study, primary data will be collected from employees
of Samsung UK with the help of questionnaire. Further, sample size will be of 10 employees
from Samsung mobile UK. The main reason why purposive sampling has been used is that it will
support in accomplishing purpose of this study. This means that only those people which can
provide useful information will be taken into consideration. A well-structured questionnaire will
be developed to identify what kind of impact social media have on customer relationship
management.
LO 5: Presenting the findings of research proposal
5.1 Recording findings on a research question, literature review and methodology
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From the above literature review, it has been found that social media is playing very important
role in enhancing customer relationship management of organizations. Along with the increase in
number of user of mobile phones, competition among businesses in mobile industry has also
increased to a great extent. The results of secondary data collected has helped in getting aware
of the fact that it is not easy for companies such as Samsung, Apple, Microsoft to retain their
customers in long run. Nowadays, people in the market are made available with large alternative.
This means a single mistake from one company can encourage all its loyal customers to use the
products and services provided by other market players. From the information gathered in
literature review it can be explained that one of the main elements which can help companies in
the mobile market to retain their customers is by developing and maintaining good relationship
with them. It has been analysed that the growing use of Facebook and Twitter have provided
organizations with a very effective platform to communicate with all their customers. The
integration of social media with practices of customer relationship management can help
business enterprise to achieve new heights of success.
The overall findings derived from the study are linked with literature review. Further, different
authors have said that social media is directly benefiting large number of organizations and has
supported in enhancing brand presence in the market. Apart from this, networking sites such as
Facebook and twitter are providing base to firms in accomplishing their long term aims and
objectives. On the other hand, the range of methodological tools adopted have provided base to
the entire research where chosen design, philosophy etc. have supported in accomplishment of
aim of the research.
5.2 Summarizing the findings
From the above literature review it can be analysed that effective use of CRM practices allows
organizations to develop effective bond with their customers. However, some themes are
presented to show exact findings of analysis:
Understanding needs of customers and satisfying them
While using social media tools, the marketers can understand and meet the demand of people in
the market in more effective manner. Nowadays, organizations seek for various kinds of ways
through which they can communicate with customers (Kim and Srivastava, 2007). With the help
of social media tool, business entities can identify the specific needs of customers and can satisfy
those needs to maintain good relations with them. This is found a main reason why companies
are putting more efforts on interacting with all their consumers is to develop good relationship
with them.
Using social media customer loyalty for a business can be increased
In the modern era, organizations are required to reflect the fact that they are really taking care of
their customers. From secondary investigation, it was found that social media is one of the best
ways to increase customer loyalty by satisfying their need and demand (Libai and et. al., 2010).
Quick respond to the ever changing need and demand
In the present scenario, the major problem associated with business enterprise is to respond
quickly to the ever changing need and demand of people in society. This is reason why
companies have started focusing on effective CRM practices. The integration of social media in
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