Research Report: Effect of Social Media on Brand Loyalty, BUSN20016

This report examines the impact of social media marketing on brand loyalty within Australian organizations. It begins by introducing the significance of online marketing and the role of social media platforms in enhancing brand effectiveness. The study identifies the benefits of social media marketing, such as increased customer engagement and brand recognition, while also addressing potential negative impacts like the spread of misinformation and the influence of competition. The research includes a conceptual framework, outlining key concepts and relevant literature, followed by a detailed discussion of the methodology, including research philosophy, approach, design, data collection, and ethical considerations. The report aims to analyze the positive and negative impacts of social media marketing on brand loyalty, offering recommendations for businesses to mitigate adverse effects and enhance their brand value through effective social media strategies. The study also provides a project schedule, budget, and Gantt chart.

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EFFECT OF SOCIAL MEDIA ON BRAND LOYALTY
[Author]
[Institution]

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Table of Contents
1. Introduction......................................................................................................................6
1.1 Introduction................................................................................................................6
1.2 Problem statement.....................................................................................................7
1.3 Research aim and objectives......................................................................................7
1.4 Research questions.....................................................................................................8
1.5 Potential output of the research.................................................................................8
2. Conceptual framework.....................................................................................................9
2.1 Introduction................................................................................................................9
2.2 Concept of Social media marketing...........................................................................9
2.3 Benefits of social media marketing to brand loyalty...............................................10
2.4 Impacts of social media marketing on brand loyalty of Australian organisations. .11
2.5 Recommendation to overcome with the adverse impact of social media marketing
on brand loyalty.........................................................................................................................12
3. Research methodology...................................................................................................13
3.1 Introduction..............................................................................................................13
3.2 Research philosophy................................................................................................13
3.3 Research approach...................................................................................................13
3.4 Research design.......................................................................................................14

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3.5 Data collection.........................................................................................................14
3.6 Sample size..............................................................................................................15
3.7 Data evaluation........................................................................................................15
3.8 Ethical consideration...............................................................................................15
3.9 Research limitation..................................................................................................16
4. Organization of study....................................................................................................16
4.1 Organization of study..............................................................................................16
4.2 Budget, project activities and Gantt chart................................................................17
4.2 Project activities and scheduling.............................................................................18
REFERENCES..................................................................................................................21

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List of table
Table 1: Budget of study.................................................................................................................9
Table 2: Schedule of project............................................................................................................9

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List of figures
Figure 1: Gantt chart......................................................................................................................12

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1. Introduction
1.1 Introduction
In the current scenario, marketing through online sources is having the significant impact
on the business, products and brand loyalty of the organizations. The utilization of social media
tools is playing the vital role in marketing and advertising of the products and services and
helping the organizations to increase the brand effectiveness in the market. The social media
tools like FaceBook, Twitter and Instagram are popular among the people and providing the
facilities to engage the people to communicate with them and provide the information in a
creative and understandable manner (Balakrishnan, Dahnil, and Yi, 2014). There are several
strategies are used for building brand loyalty and enhancing the brand value through online
mediums.
The term brand loyalty refers to when people have strong affinity towards the specific
brand and repeat the purchase with the organization. The major concept that has been followed
by the organization for increasing brand value is to offer Life Time Value (LTV) for every
customer. The organizations are developing and implementing creative strategies for engaging
customers (Hajli, 2014). The brand loyalty is helpful for organizations to increase their resistance
to competition and improve the advocacy using the social media tools. Moreover, the social
media marketing functions involve sharing of quality content, respond to customer issues in real
time, and improve the interaction with existing and potential customers and identification of
market opportunities to manage the relationship with the people that help in improvement of
brand loyalty (Ahmad, Musa, and Harun, 2016).

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1.2 Problem statement
The current study will look to identify the strategies and tactics that used by the
organizations of Australia for social media marketing that has the significant impact on the brand
loyalty of organization. There are various factors that have the negative impact on social media
marketing and influence the brand effectiveness of an organization (Godey and et al., 2016). The
modification and utilization of advanced technology in social media and online marketing are the
areas of concern for the study. However, the market research and survey that conducted by the
organizations help them to increase the knowledge about the online marketing functions for
increasing the brand loyalty but the offering of fake information, issues related to payment and
competition level affect the approach of the organization.
The purpose of the report is to find out the sustainable approaches and tactics that could
be beneficial for organizations to meet the goals and objectives of the organization using the
social media marketing tools that contribute in enhancing the brand loyalty. The research will
focus on existing approaches of organizations from Australia over social media marketing
functions and their impact on the brand loyalty in the market (Felix, Rauschnabel, and Hinsch,
2017). Apart from that, the study will also analyze the factors and issues that have the negative
impact on social media marketing functions and affect the brand loyalty of organizations. The
organizations are investing huge amount on promotion and marketing of products, services, and
business through online sources but lack of monitoring and consideration of market trends in the
particular industry is influencing their decisions. Moreover, the study will analyze the reliability
and validity of social media for enhancing the brand effectiveness.
1.3 Research aim and objectives
Aim

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The aim of research is to analyze the impact of social media marketing on the brand
loyalty of Australian organizations.
Objectives
 To find out the beneficial effects of social media marketing on brand loyalty of
Australian organization
 To find out how social media marketing adversely affects the brand loyalty of an
organization.
 To provide effective recommendation for eradicating the negative effect of social media
marketing on brand equity
1.4 Research questions
1. What are the potential benefits of social media marketing on brand loyalty of
Australian organizations?
2. What are the negative impacts of social media marketing on brand loyalty?
3. What strategies can be used for overcome the negative impact and increase the brand
effectiveness?
1.5 Potential output of the research
The research will find out potential benefits of using social media marketing tools on the
Australian organizations. The social media is one of the most powerful tools in the current time
for promoting the products, services, and brand in the target areas. The major output of research
will involve the positive and negative impact of the social media marketing on the retention of
customers and engaging them into repeat purchase (Rodriguez, Peterson, and Ajjan, 2015).
Moreover, the study will focus on strategies for encouraging the brand effectiveness of

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organization using social media tools. Moreover, the research will find out the alternative
functions that can be used for overcome the gaps that find out in the literature review related to
potential benefits and strategies that applied by the organizations to meet the determined goals
and objectives.
2. Conceptual framework
2.1 Introduction
The review of literature or conceptual framework is an important section which displays
the knowledge and understanding collected by the researcher on specific topic. This section
develops a theoretical base with the help of different concepts and theories on similar topic
carried out by renowned scholars in their past studies. Currently, the conceptual framework
would include the details about the impact of social media marketing on brand loyalty of
Australian organization specifically.
2.2 Concept of Social media marketing
In accordance to (Heggde and Shainesh, 2018), social media has become most used
technology in the recent trends for every segment of population. The social media marketing is
basically a form of internet marketing activity which makes use of social networking sites as a
marketing tool. It mainly includes the usage of social networks and social media websites so that
to market the products and services of the companies. The social media marketing assists the
organisations with the ways to approach new customer and get engaged with the existing
customers as well. It contributes in developing their brand recognition and promotes desired
values and mission among the wide customer segments. In addition to this, it is been identified
that social media marketing plays a significant role in approaching customers, interacting with
the target segment, communication and branding, conducting effective marketing and developing

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strong relationship with the customers (Felix, Rauschnabel and Hinsch, 2017). The direct
approach to the customer segment also leads the organisation to build a brand loyalty among the
target segments effectively.
2.3 Benefits of social media marketing to brand loyalty
According to Ismail (2017), the social media marketing activities had vitally changes the
ways in which businesses communicate with their target customers and the population at large.
The innovative and unique way of approaching the larger customer platform had provided the
business organisations with new avenues. There are various benefits of using social media
marketing as the promotional base with the intention to enhance the brand loyalty. Developing
brand loyalty is a crucial act could which lead the business towards either success or failure. The
social media marketing provides the businesses with a large number of audiences at single
platform which also enhances the time and cost efficiencies to the organisations (Alalwan, Rana,
Dwivedi and Algharabat, 2017). It is been found that social media helps in making the brand
more competitive and enhances the interest of the customers as well.
The increased promotional activities and online presence makes the brand noticeable
among the customers and thus establish a brand loyalty as well. The social media users acts as
the best advocates for the brand and works with the word of mouth as the most trusted source.
The word of mouth promotion leads towards the addition of loyal customers as well as
establishes a brand loyalty among them (Thompson, Martin Gee and Geurin, 2018). Moreover,
it has been also seen that the social media marketing develops a strong reliability and trust
among the customers about the brands. It constructs a brand loyalty among the consumers having
higher satisfactions and reliabilities over the same.

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2.4 Impacts of social media marketing on brand loyalty of Australian organisations
Social media marketing have become a new sensation for the current generation and had
covered a huge segment of the population all over the world. In the opinion of Zahoor and
Qureshi, (2017), the innovative techniques initiated to approach the marketplace had emerged as
an essential tool for the customer service, marketing activities and public relations. Having
immense benefits and ease to connect with the customers, social media marketing also come up
with few drawbacks to the organisations. It has been seen that the Australian consumer segment
is much adaptable and active on social media.
The new techniques initiated by the Australia organisation through social media had
made remarkable impacts in building their brand loyalty among customers (Potgieter and
Naidoo, 2017). As the brands establish a positive and prominent image of brands in the minds of
huge customer segment, they become over powering and irreplaceable and thus win the loyalty
of customers. The enhanced brand loyalty contributes in bringing sales revenues, profitability,
market share and brand positioning in the marketplace.
Kumar, Choi and Greene (2017) had discussed that brand loyalty is basically the
commitment of customers towards the brand to repurchase the products and services despite of
all the competitive actions. The customers with higher loyalty commit to become a client of that
business in future in regular basis. The social media marketing had impacted the brand loyalty in
both the positive and negative manners of Australian organisations. It has been found that the
brand loyalty of customer is been positively impacted by the social media marketing. The brands
influences the customers by offering advantageous campaigns, appearing on different social
media platforms, getting feedbacks and reviews and offering application on social media. These
acts had made the Australian organisations develop their brand loyalty among the customers at

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wider platforms (Crosby, 2017). However, there are some negative impacts also being laid by the
social media marketing activities on brand loyalty of the organisations. The negative feedbacks
of the customers could influence the other people as well and affect the brand loyalty of the
organisation.
2.5 Recommendation to overcome with the adverse impact of social media marketing on
brand loyalty
According to Ramadan, Abosag and Zabkar (2018) that having a social media marketing
strategy for brand loyalty includes wide range of benefits as well as difficulties for the business.
It has been seen that a single negative word of mouth over social media could lay an adverse
impact over the brand loyalty of the customers. Lacking in responding towards the feedbacks
could make the brand loyalty suffer and affect the organisation specifically. Therefore, So, Wu,
Xiong and King, (2018) had stated that making a smart use of effective strategies to eradicate the
negative impacts of social media marketing over the brand loyalty is important. It is essential for
the organisation to ensure the quick responses to the feedbacks of the customer so that to keep
them satisfied out of the issues. Customer and trust in brand are the most important keys to
sustain brand loyalty and gain higher profitability out of social media marketing. It has been seen
that the customer often desires to develop relationships with the brands.
Thus, it is recommended that the Australian organisation must develop strong public
relation by establishing two way conversations with the customer and the business effectively.
Responding to the customer queries and feedbacks would highly contribute in developing a
positive relationship with the customer (Colicev, Malshe, Pauwels and O’Connor, 2018). It
would even lead in eradicating the negative aspects over social media and would also reduce its
impact over brand loyalty of the Australian organisations.

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3. Research methodology
3.1 Introduction
Research methodology is the section which defines the tools and methods to be used
while initiating and throughout the research. It specifies the methodologies used by the
researcher to reach towards the end results (Fletcher, 2017). It includes specific elements such as
research philosophy, research approach, design, data collection, data analysis, ethical
consideration and research limitation which contribute in conducting the study effectively.
3.2 Research philosophy
In the opinion of Creswell and Creswell (2017), research philosophy includes the aspects
related to the knowledge and understanding acquired by the researcher on the subject matter. It is
mainly measured on the basis of source, nature and levels of information acquired by the
researcher. The realism, positivism and interpretivism philosophy are the three types of research
philosophy. In context to the current research the investigator would utilise the positivism
research philosophy. This type mainly focuses the objective nature of the study. The positivism
research philosophy would assist the investigator in exploring objective aspects of the study and
extract fruitful outcomes.
3.3 Research approach
According to Lægreid and Christensen, (2017) research approach helps in extending the
set assumptions of the research to a specific manner of acquiring, analysing and interpreting the
facts and information related to the topic. The research approach is divided into two types such
as deductive approach and inductive approach that aids the researcher in developing a strong
framework effectively. In context to the current research, the investigator would utilise the
inductive research approach. This type of approach would assist the researcher in developing

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informative decisions from the collected data. It would even contribute in recognising the most
suitable strategy for conducting the research and mitigate with the constraints faced into it.
3.4 Research design
Creswell and Clark, (2017) had stated that the outline of the ways in which study is going
to be conducted is termed as the research design. It is basically a description of diversified
aspects and methodologies to be followed by the investigator. Descriptive, exploratory and
casual research design is the three types of research design being used by the researchers to
conduct the study. In present study, descriptive research design would be applied by the
researcher based on the nature and objective of the study. This design would assist the
researcher in evaluating the impact of social media marketing on brand loyalty of Australian
organisations. It would also help in developing specific hypothesis based on the concepts and
extract effective results out of the same.
3.5 Data collection
Data collection is an important element of research methodology as it signifies the ways
and methods of collecting the required data and information relevant to the subject matter. The
collection of data is been conducted in two types i.e. primary data collection and secondary data
collection methods. The researcher in present study would make use of both the primary and
secondary data collection method where both the primary and secondary data would be collected
through different sources (McCormick, Lee, Cesare, Shojaie and Spiro, 2017). The primary data
would be collected by using questionnaire and interview where an open ended interview would
be conducted to avail the relevant information. In addition to this, nearly about 10 scholarly
articles related to the topic would be accessed by the researcher to collect the secondary data.

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3.6 Sample size
The researcher would make use of non probability sampling techniques for collecting
primary data. This method does not provide with the equal opportunities to the individual to get
selected (Rahi, 2017). However, the sample would mainly include managers of well reputed
organisations of Australia for conducting the interview.
3.7 Data evaluation
Data evaluation is another important section and plays an important role in accomplishing
the research effectively. There are various tools and techniques used for evaluating the collected
data and information. The investigator in present study would make use of the qualitative
analysis to evaluate the collected data and reach the end results. The qualitative analysis would
enable the investigation in gaining an in depth understanding of underlying reasons, motivations
and opinions towards the research topic (Straus, 2017). Additionally, the thematic analysis would
be used where themes would be framed for evaluating the hypothesis and construct useful
outcome.
3.8 Ethical consideration
Ethical consideration as per Wilson, Kenny and Dickson-Swift, (2018) is the set of
ethical standards which describes the authenticity and reliability of the research. It is important
for the investigator to ensure that ethical consideration is been followed throughout the study.
The researcher in present research had made sure to keep the ethical aspects in consideration and
no biasness or illegitimate acts have been included in the same. It has been ensured that the
respondents are been informed about the intention and objectives of the researcher and avail fair
consents prior to the interview. It is also guaranteed that no information is been shared to third
party without the consent of the respondents and is not used for any other purposes.

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3.9 Research limitation
Carrying out a research is not an easy task and includes wide range of complexities into
it. While conducting the research, the investigator came across various limitations which
confined its boundaries to explore the wider area of the platform. The major limitation faced by
the researcher was time and budget where many of the most relevant sources could not be
accessed as they were being charged. The time frame was limited which made the researcher
limited towards the exploration about the subject matter (Lindlof and Taylor, 2017). However,
the researcher managed to overcome with the issues by making use of time management
strategies to meet the deadlines. The investigator approached various other sources like online
journals, libraries and book which were available for free and relevant to the topic as well.
4. Organization of study
4.1 Organization of study
In order to carry out the research, the study has been divided into five chapters. The first
chapter of the research will be the Introduction section. This chapter will provide brief
information about the background of the study sand problem that going to be analyzed for
finding the appropriate solutions. Moreover, this chapter will also provide information about the
aim, objectives and research questions of the study. The next chapter will be the literature
review. This section of study will have the discussion regarding the topic using the critical
analysis of past studies and different views of authors on the selected subject. These studies are
considered for developing the strong theoretical background for study. The third chapter will be
the research methodology. This section of study will offer detail information regarding tools and

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techniques that used for maintaining the research flow and justification of the chosen methods
for the particular research.
The fourth chapter will be data analysis and findings. This chapter is one of the most
important parts of the study that helps in dawning appropriate findings for the study.
Additionally, the analysis and finding section will carry out by the researcher with the respect to
the data collected from both primary and secondary sources. The final chapter of research will be
conclusion and recommendations. In this chapter, the researcher will provide in-depth and
summative discussion about the finding related to aim and objectives of the study as well as
provide the appropriate recommendations for the study to improve the effectiveness of social
media marketing for encouraging the brand loyalty.
4.2 Budget, project activities and Gantt chart
For conducting the study, there is need of funds for managing the operations related to
data collection for developing strong literature, data for analysis and access of tools for analyzing
the data for the final outcome of the research. The approximate budget for the current study of
analyzing the impact of social media marketing on brand loyalty of four Australian organizations
will be $5000. The budget has been specified for the following aspects of the study:
 Literature review budget is $1500 as access of libraries and reputed journal
articles is expensive.
 Data collection is important part of research for collecting primary and secondary
data for study the cost would be around $2500
 Data analysis is having significant role in drawing the conclusion and meeting the
objectives of research by using SPSS and questionnaire analysis, the cost of this
will be around $1000

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Table 1: Budget of study
Purpose Estimated amount
Literature review $1500
Data collection $2500
Data analysis $1000
Total $5000
4.2 Project activities and scheduling
Table 2: Schedule of project
Task Name Duration Start Finish Predecessors
Project 41 days Wed 03-10-18 Wed 28-11-18
Introduction 2 days Wed 03-10-18 Thu 04-10-18
Problem
statement 3 days Fri 05-10-18 Tue 09-10-18 2
Primary
research on
impact of social
media 6 days Wed 10-10-18 Wed 17-10-18 3
Literature
review 4 days Thu 18-10-18 Tue 23-10-18 2,4
Secondary
research 5 days Wed 24-10-18 Tue 30-10-18 5

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Identification
of dependent 1 day Wed 31-10-18 Wed 31-10-18 4,6
Selection of
organization 5 days Wed 24-10-18 Tue 30-10-18 3,5
Conceptual
framework 2 days Thu 01-11-18 Fri 02-11-18 7,8
Research
methodology 4 days Mon 05-11-18 Thu 08-11-18 9
Data analysis
using SPSS 7 days Fri 09-11-18 Mon 19-11-18 10
Conclusion 3 days Tue 20-11-18 Thu 22-11-18 11
Recommendation 2 days Fri 23-11-18 Mon 26-11-18 12
Final report 1 day Tue 27-11-18 Tue 27-11-18 12,13
The schedule of the project will start on Wed 03-10-18 and completed by Wed 28-11-18.
The total frame of completing the project is 41 working days. The researcher will focus on the
activities according to schedule and try to complete them as per the estimated time. The major
activities of scheduled tasks involve the introduction, problem statement, literature review,

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research methodology, and data collection as well as analysis. Furthermore, the scheduling of
task involves the conclusion, recommendation final report generation and submission of study.
Figure 1: Gantt chart
The Gantt chart is offering information about the interrelation of the activities of the
project. The researcher will follow determine relation and schedule according to Gantt chart to
complete the research in the proposed manner.

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