A Comprehensive Report: Social Media Impact on Business Performance
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This report investigates the multifaceted impact of social media on business performance. It begins with an introduction to social media, its concept, and significance, followed by an analysis of its influence on organizational performance. The report explores various social media platforms utilized by businesses, including Facebook, Instagram, Twitter, and LinkedIn, and examines their roles in marketing, brand awareness, and customer engagement. The methodology section outlines the data collection methods, including the use of secondary data, qualitative research, and an interpretive research philosophy. The discussion section highlights both the positive and negative impacts of social media on business operations, such as enhanced profitability, brand value, and customer insights, as well as the potential costs and challenges associated with its implementation. The conclusion summarizes the key findings, emphasizing the crucial role of social media in modern business strategies. Finally, the report acknowledges its limitations and provides a list of references.

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Table of Contents
Topic: “Impact of Social Media on Performance of Business”.......................................................1
Introduction......................................................................................................................................1
Concept and significance of Social Media.............................................................................2
Impact of social media on performance of organisation........................................................2
Social media platforms utilised by organisation....................................................................3
Methodology....................................................................................................................................3
Discussion........................................................................................................................................5
Conclusion.......................................................................................................................................6
Limitations.......................................................................................................................................6
References........................................................................................................................................7
Topic: “Impact of Social Media on Performance of Business”.......................................................1
Introduction......................................................................................................................................1
Concept and significance of Social Media.............................................................................2
Impact of social media on performance of organisation........................................................2
Social media platforms utilised by organisation....................................................................3
Methodology....................................................................................................................................3
Discussion........................................................................................................................................5
Conclusion.......................................................................................................................................6
Limitations.......................................................................................................................................6
References........................................................................................................................................7

Topic: “Impact of Social Media on Performance of Business”
Introduction
The united term for applications and websites that emphasise on communication, content-
sharing, community based input, collaboration and content-sharing is referred to as social media.
There are various sites which are dedicated for social networking, social curation, wikis,
microblogging and forums (Avornyo and et. al, 2020). Generally, they are designed for aiding
people for sharing content in quick, real-time and efficient manner. The rationale behind making
use of social media is to promote services as well as other offerings that are being provided by
organisation. Therefore, it is crucial that manager must inspire their employees for making use of
social media techniques for brining in their products within the market. This report comprises of
aims as well as objectives and problems that can have negative influence on business.
Research Aim:
To investigate the impact of social media on business performance within the
marketplace.
Research Objectives:-
i. To acknowledge concept along with significance of social media.
ii. To understand influence of social media on performance of business.
iii. To determine distinct social media platforms utilised by business organisation for
grabbing the opportunity.
Research Questions:
Explicate the concept as well as significance of social media?
What impact social media creates on performance of organisation?
What are the different social media platforms that are being utilised by organisation for
grabbing opportunities?
1
Introduction
The united term for applications and websites that emphasise on communication, content-
sharing, community based input, collaboration and content-sharing is referred to as social media.
There are various sites which are dedicated for social networking, social curation, wikis,
microblogging and forums (Avornyo and et. al, 2020). Generally, they are designed for aiding
people for sharing content in quick, real-time and efficient manner. The rationale behind making
use of social media is to promote services as well as other offerings that are being provided by
organisation. Therefore, it is crucial that manager must inspire their employees for making use of
social media techniques for brining in their products within the market. This report comprises of
aims as well as objectives and problems that can have negative influence on business.
Research Aim:
To investigate the impact of social media on business performance within the
marketplace.
Research Objectives:-
i. To acknowledge concept along with significance of social media.
ii. To understand influence of social media on performance of business.
iii. To determine distinct social media platforms utilised by business organisation for
grabbing the opportunity.
Research Questions:
Explicate the concept as well as significance of social media?
What impact social media creates on performance of organisation?
What are the different social media platforms that are being utilised by organisation for
grabbing opportunities?
1
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Concept and significance of Social Media
As per opinion of (Bill, Feurer and Klarmann, 2020), social media is regarded as
communicative technology which aids within furnishing facilities associated with sharing
information, data and ideas with customers along with this their perspectives can also be taken
into consideration. There exist wide range of social media techniques that ranges from
advertisements, public relations, publicity and sales promotion for development of their offerings
in an enhanced manner. Social media renders business with enhanced benefits which clearly
states the significance this concept has. This aids within boosting the awareness associated with
brand for their customers in marketplace. Furthermore, it also assists businesses within boosting
awareness associated with brand for their customers in market. Apart from this, this will aid
within generation of leads that can lead business organisation to have growth and have their
strong customer base. An example can be taken to understand this aspect, suppose Tesco have
their pages in Facebook and update them as per offerings, discounts, bonus or any other concern
this will help them to promote their offerings.
At present scenario, ample of people makes use of social media, this makes it easy to
reach maximum number of people and will also make people aware about what the firm deals
within and can opt for services from them. This will have an affirmative impact on overall sales
of organisation. In addition to this, it will enable individuals to recognise their brand within the
marketplace. It implies that people are aware are about their offerings and their main rationale to
emphasise on satisfaction of ample number of customers in terms of quality, their preferences
and value for money (Chung and et. al, 2020). This will also allow them to grab attention of
particular group of population in stipulated time frame. Further, it will improvise reputation and
image of brand for their customers. Social media will allow firm to retain their customers for
longer time as they will be able to know what all benefits are being furnished by them in
comparison to their competitors. Through this they focus on rate of return so that it can be
maximised for declining the pessimistic impact that is created on profit of organisation.
Therefore, social media can be utilised to share information as it will lead to enhance brand
reputation and value of services as well as products within marketplace.
Impact of social media on performance of organisation
As per view point of (Della Corte and et. al, 2020), social media leads to creation of
direct influence on success as well as growth of business firms within the market. Firms make
2
As per opinion of (Bill, Feurer and Klarmann, 2020), social media is regarded as
communicative technology which aids within furnishing facilities associated with sharing
information, data and ideas with customers along with this their perspectives can also be taken
into consideration. There exist wide range of social media techniques that ranges from
advertisements, public relations, publicity and sales promotion for development of their offerings
in an enhanced manner. Social media renders business with enhanced benefits which clearly
states the significance this concept has. This aids within boosting the awareness associated with
brand for their customers in marketplace. Furthermore, it also assists businesses within boosting
awareness associated with brand for their customers in market. Apart from this, this will aid
within generation of leads that can lead business organisation to have growth and have their
strong customer base. An example can be taken to understand this aspect, suppose Tesco have
their pages in Facebook and update them as per offerings, discounts, bonus or any other concern
this will help them to promote their offerings.
At present scenario, ample of people makes use of social media, this makes it easy to
reach maximum number of people and will also make people aware about what the firm deals
within and can opt for services from them. This will have an affirmative impact on overall sales
of organisation. In addition to this, it will enable individuals to recognise their brand within the
marketplace. It implies that people are aware are about their offerings and their main rationale to
emphasise on satisfaction of ample number of customers in terms of quality, their preferences
and value for money (Chung and et. al, 2020). This will also allow them to grab attention of
particular group of population in stipulated time frame. Further, it will improvise reputation and
image of brand for their customers. Social media will allow firm to retain their customers for
longer time as they will be able to know what all benefits are being furnished by them in
comparison to their competitors. Through this they focus on rate of return so that it can be
maximised for declining the pessimistic impact that is created on profit of organisation.
Therefore, social media can be utilised to share information as it will lead to enhance brand
reputation and value of services as well as products within marketplace.
Impact of social media on performance of organisation
As per view point of (Della Corte and et. al, 2020), social media leads to creation of
direct influence on success as well as growth of business firms within the market. Firms make
2
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use of this platform for having enhanced performance at distinct levels. This also implies that it
will aid within gathering of efficacious information associated with demands and needs of
customer in market. Thus, it can be stated that social media have both pessimistic as well as
affirmative impact on sales and profitability of firm. An example can be taken like by making
use of Instagram firm can grab attention of ample number of people and as per their needs or
requirements furnish services to them . But if the comments made on posts are fake or may be
from personnel of their competitors then it can have negative impact and unnecessary cost will
also be wasted (Lal and et. al, 2020). This illustrates that both the aspects have enhance influence
on organisation. The brand value can be enhanced by this that enforces optimistic impact on
levels of performance. On context of unconstructive impact, cost associated with social media
will have unfavourable effect on profit of organisation.
Social media platforms utilised by organisation
According to (Martín-Rojas and et. al, 2020), there various kind of social media tools that
are being utilised by organisation, they are facebook, twitter, Instagram, LinkedIn and many
others that leads to creation of adequate influence on performance levels of organisation.
Facebook is utilised for promotion of brand awareness among their customers related with their
offerings. Apart from this, instagram is utilised for capturing ample of customers in business
firm. This will aid within sales of organisation through which they can ensure attainment of their
short term goals. Furthermore, Twitter is a platform through which they can attain leading
position of firm around the world. This will help firm to have enhanced market shares as it will
amplify their brand value in from of their probable customers. Apart from this, LinkedIn can be
utilised by HR of firm as it is a formal tool and will aid them within recruitment of well qualified
people as per their requirements. This will lead to enhancement of productivity and performance
of organisation with respects to their services.
Methodology
The process that is being opted by researcher or investigator for fulfilment of their
research as per desired standards and making sure that outcome attained is systematic as well as
precise is referred to as methodology. This is carried out with reference to topic that has to be
investigated. Research methodology is crucial section while inspecting each aspect related with
3
will aid within gathering of efficacious information associated with demands and needs of
customer in market. Thus, it can be stated that social media have both pessimistic as well as
affirmative impact on sales and profitability of firm. An example can be taken like by making
use of Instagram firm can grab attention of ample number of people and as per their needs or
requirements furnish services to them . But if the comments made on posts are fake or may be
from personnel of their competitors then it can have negative impact and unnecessary cost will
also be wasted (Lal and et. al, 2020). This illustrates that both the aspects have enhance influence
on organisation. The brand value can be enhanced by this that enforces optimistic impact on
levels of performance. On context of unconstructive impact, cost associated with social media
will have unfavourable effect on profit of organisation.
Social media platforms utilised by organisation
According to (Martín-Rojas and et. al, 2020), there various kind of social media tools that
are being utilised by organisation, they are facebook, twitter, Instagram, LinkedIn and many
others that leads to creation of adequate influence on performance levels of organisation.
Facebook is utilised for promotion of brand awareness among their customers related with their
offerings. Apart from this, instagram is utilised for capturing ample of customers in business
firm. This will aid within sales of organisation through which they can ensure attainment of their
short term goals. Furthermore, Twitter is a platform through which they can attain leading
position of firm around the world. This will help firm to have enhanced market shares as it will
amplify their brand value in from of their probable customers. Apart from this, LinkedIn can be
utilised by HR of firm as it is a formal tool and will aid them within recruitment of well qualified
people as per their requirements. This will lead to enhancement of productivity and performance
of organisation with respects to their services.
Methodology
The process that is being opted by researcher or investigator for fulfilment of their
research as per desired standards and making sure that outcome attained is systematic as well as
precise is referred to as methodology. This is carried out with reference to topic that has to be
investigated. Research methodology is crucial section while inspecting each aspect related with
3

topic in precise way (Moy, Cahyadi and Anggraeni, 2020). There are few mandatory entities
that have to be taken into consideration by researchers to carry out study in an efficacious way.
Data collection method: This is defined as approach that involves two methods
associated with assortment of information through which entire research can be concluded in an
effective manner. These two methods are secondary and primary data collection which are being
utilised by researcher for completion of project. With respect to this research, secondary methods
are being used to attain desired results within stipulated time frame. In addition to this,
researcher makes use of articles, newspaper, journals, books and various other sources for having
validated as well as authenticated information will be collected by researchers. The major aim
behind making use of this approach is that, it is cost efficacious method and also aids within
collection of information within desired time frame (Nematova and et. al, 2020). As a
implication, it leads to furnish enhanced affirmative impact on results as they are reliable, precise
and authentic.
Types of investigation: This implies kind of approach that assists researchers to examine
as well as analyse the gathered information in an adequate manner. In this there are two types of
investigations that are qualitative as well as quantitative research approaches. With respect to this
research, this is identified that researcher has opted to make use of qualitative method as this aids
within examination of information which is gathered in detailed manner depending on the basis
of insight into human behaviour.
Research philosophy: This method is being utilised by researcher for examination as
well as evaluation of information that has been gathered through usage of secondary method. It is
a research philosophy approach that is of two types, they are interpretive and positivism. In
context of this research, investigator has opted to utilise interpretive philosophy that is liable for
rendering guidance to investigator through which they can conduct all operations and
functionalities an adequate and effectual way (Olanrewaju and et. al, 2020).
Research design: For carrying out research, it is necessary that structure that is being
opted via investigator is efficacious as well as appropriate that will lead them to have affirmative
outcome. This has been implicated that there exist three research designs which can be utilised,
they are: exploratory, experimental and descriptive. With reference to this research, the
researcher has opted to make use of exploratory research design for carrying out investigation
within ethical as well as effectual way. The aim behind utilisation of this method is that it will
4
that have to be taken into consideration by researchers to carry out study in an efficacious way.
Data collection method: This is defined as approach that involves two methods
associated with assortment of information through which entire research can be concluded in an
effective manner. These two methods are secondary and primary data collection which are being
utilised by researcher for completion of project. With respect to this research, secondary methods
are being used to attain desired results within stipulated time frame. In addition to this,
researcher makes use of articles, newspaper, journals, books and various other sources for having
validated as well as authenticated information will be collected by researchers. The major aim
behind making use of this approach is that, it is cost efficacious method and also aids within
collection of information within desired time frame (Nematova and et. al, 2020). As a
implication, it leads to furnish enhanced affirmative impact on results as they are reliable, precise
and authentic.
Types of investigation: This implies kind of approach that assists researchers to examine
as well as analyse the gathered information in an adequate manner. In this there are two types of
investigations that are qualitative as well as quantitative research approaches. With respect to this
research, this is identified that researcher has opted to make use of qualitative method as this aids
within examination of information which is gathered in detailed manner depending on the basis
of insight into human behaviour.
Research philosophy: This method is being utilised by researcher for examination as
well as evaluation of information that has been gathered through usage of secondary method. It is
a research philosophy approach that is of two types, they are interpretive and positivism. In
context of this research, investigator has opted to utilise interpretive philosophy that is liable for
rendering guidance to investigator through which they can conduct all operations and
functionalities an adequate and effectual way (Olanrewaju and et. al, 2020).
Research design: For carrying out research, it is necessary that structure that is being
opted via investigator is efficacious as well as appropriate that will lead them to have affirmative
outcome. This has been implicated that there exist three research designs which can be utilised,
they are: exploratory, experimental and descriptive. With reference to this research, the
researcher has opted to make use of exploratory research design for carrying out investigation
within ethical as well as effectual way. The aim behind utilisation of this method is that it will
4
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assist within development of having in depth knowledge related with topic as well as will assist
within completion of project in precise and authentic way (Sohail, Hasan and Sohail, 2020).
Ethical consideration: This means that researcher must perform their operations in an
ethical way so that entire work can be accomplished in a relevant way. With respect to this
research, investigator has opted to make use of secondary method for data collection. It is crucial
for researcher to ensure that the ways in which information is being provided is accurate as well
as authentic so that optimistic result can be achieved. For completing this researcher, researcher
has opted for making use of latest journal through which research can be conducted in effective
and ethical manner.
Discussion
According to the topic, that is impact of social media on business in context of business
organisation, it is identified that it is approach which is being utilised for furnishing assistance
for growth as well as development of firm within the competitive market (Yang, Basile and
Letourneau, 2020). For each organisation that is delivering their services in present scenario it is
apt that they must opt for making use of social media to enhance performance of their business.
The reason behind this is that it furnishes relevant assistance to capture wide range of customers
which aids them within attainment of competitive edge within continuously evolving market. For
each firm, in modern era it is necessary that they make use of techniques related with social
media for capturing large number of customers through which they can have surety related with
long term sustainability within the marketplace.
In addition to this, the above illustrated analysis makes it very evident that social media
has both aspects related with it that is negative and positive impact on ways in which business
renders their functions. From positive aspects, firm can have enhanced profitability which will
lead to amplify their goodwill within rapidly changing market. Furthermore in terms of negative,
cost is involved and if it is not utilised in an appropriate manner then it will not be worth to make
investments. In addition to this, it has identified that through usage of social media needs along
with wants of customers that will, have affirmative impact on overall ways in which operations
are being carried out by firm (Avornyo and et. al, 2020). It is obvious from all the discussion that
social media will lead to creation of enhanced impact as through which customers can be
captured their needs can be analysed and what is being done of competitors that information can
also be attained.
5
within completion of project in precise and authentic way (Sohail, Hasan and Sohail, 2020).
Ethical consideration: This means that researcher must perform their operations in an
ethical way so that entire work can be accomplished in a relevant way. With respect to this
research, investigator has opted to make use of secondary method for data collection. It is crucial
for researcher to ensure that the ways in which information is being provided is accurate as well
as authentic so that optimistic result can be achieved. For completing this researcher, researcher
has opted for making use of latest journal through which research can be conducted in effective
and ethical manner.
Discussion
According to the topic, that is impact of social media on business in context of business
organisation, it is identified that it is approach which is being utilised for furnishing assistance
for growth as well as development of firm within the competitive market (Yang, Basile and
Letourneau, 2020). For each organisation that is delivering their services in present scenario it is
apt that they must opt for making use of social media to enhance performance of their business.
The reason behind this is that it furnishes relevant assistance to capture wide range of customers
which aids them within attainment of competitive edge within continuously evolving market. For
each firm, in modern era it is necessary that they make use of techniques related with social
media for capturing large number of customers through which they can have surety related with
long term sustainability within the marketplace.
In addition to this, the above illustrated analysis makes it very evident that social media
has both aspects related with it that is negative and positive impact on ways in which business
renders their functions. From positive aspects, firm can have enhanced profitability which will
lead to amplify their goodwill within rapidly changing market. Furthermore in terms of negative,
cost is involved and if it is not utilised in an appropriate manner then it will not be worth to make
investments. In addition to this, it has identified that through usage of social media needs along
with wants of customers that will, have affirmative impact on overall ways in which operations
are being carried out by firm (Avornyo and et. al, 2020). It is obvious from all the discussion that
social media will lead to creation of enhanced impact as through which customers can be
captured their needs can be analysed and what is being done of competitors that information can
also be attained.
5
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Conclusion
From above it can be concluded that, technology is making wide range of enhancements
in the ways in which operations are being carried out. Social media is also a kind of technology
that is utilised to have access to wide range of audiences to acknowledge their preferences. This
implies that there will be amplified impact of social media. Though, there are affirmative impacts
but along with this there are some negative aspects associated with this. Different research
methods are being utilised for making sure that adequate outcomes can be attained in context of
social media.
Limitations
It has been identified that there are certain restrictions or drawbacks which might resist
firms to make use of social media. But by looking at positive aspects it is better that firms make
use of social media to carry out their processes related with marketing of offerings and
enhancing their brand image. The major drawback is the comments which are being made by
people on the posts as there is highly probability that competitors may try that they defame or
give bad reviews for products offered by them. To deal with them adequate strategies have to be
implemented like social media expert can be hired who will be liable for dealing with this aspect.
6
From above it can be concluded that, technology is making wide range of enhancements
in the ways in which operations are being carried out. Social media is also a kind of technology
that is utilised to have access to wide range of audiences to acknowledge their preferences. This
implies that there will be amplified impact of social media. Though, there are affirmative impacts
but along with this there are some negative aspects associated with this. Different research
methods are being utilised for making sure that adequate outcomes can be attained in context of
social media.
Limitations
It has been identified that there are certain restrictions or drawbacks which might resist
firms to make use of social media. But by looking at positive aspects it is better that firms make
use of social media to carry out their processes related with marketing of offerings and
enhancing their brand image. The major drawback is the comments which are being made by
people on the posts as there is highly probability that competitors may try that they defame or
give bad reviews for products offered by them. To deal with them adequate strategies have to be
implemented like social media expert can be hired who will be liable for dealing with this aspect.
6

References
Books & Journals
Avornyo, F. and et. al, 2020. Social Media Technologies and Export Marketing. In Digital
Transformation in Business and Society (pp. 83-102). Palgrave Macmillan, Cham.
Bill, F., Feurer, S. and Klarmann, M., 2020. Salesperson social media use in business-to-business
relationships: An empirical test of an integrative framework linking antecedents and
consequences. Journal of the Academy of Marketing Science, pp.1-19.
Chung, S. and et. al, 2020. Financial returns to firms’ communication actions on firm-initiated
social media: evidence from Facebook business pages. Information Systems
Research, 31(1), pp.258-285.
Della Corte, V. and et. al, 2020. Impacts of Social Media on Business Value and Performance.
In Handbook of Research on Social Media Applications for the Tourism and Hospitality
Sector (pp. 82-101). IGI Global.
Lal, B. And et. al, 2020. Return on Investment in Social Media Marketing: Literature Review
and Suggestions for Future Research. In Digital and Social Media Marketing (pp. 3-17).
Springer, Cham.
Martín-Rojas, R. and et. al, 2020. Social Media Use and the Challenge of Complexity: Evidence
from the Technology Sector. Journal of Business Research.
Moy, M.M., Cahyadi, E.R. and Anggraeni, E., 2020. The Impact of Social Media on Knowledge
Creation, Innovation, and Performance in Small and Medium Enterprises. Indonesian
Journal of Business and Entrepreneurship (IJBE), 6(1), pp.23-23.
Nematova, G. and et. al, 2020. Social Media, Software Engineering Collaboration Tools and
Software Company’s Performance. In Computational Science and Technology (pp. 179-
188). Springer, Singapore.
Olanrewaju, A.S.T. and et. al, 2020. Social media and entrepreneurship research: A literature
review. International Journal of Information Management, 50, pp.90-110.
Sohail, M.S., Hasan, M. and Sohail, A.F., 2020. The Impact of Social Media Marketing on Brand
Trust and Brand Loyalty: An Arab Perspective. International Journal of Online
Marketing (IJOM), 10(1), pp.15-31.
Yang, J., Basile, K. and Letourneau, O., 2020. The impact of social media platform selection on
effectively communicating about corporate social responsibility. Journal of Marketing
Communications, 26(1), pp.65-87.
7
Books & Journals
Avornyo, F. and et. al, 2020. Social Media Technologies and Export Marketing. In Digital
Transformation in Business and Society (pp. 83-102). Palgrave Macmillan, Cham.
Bill, F., Feurer, S. and Klarmann, M., 2020. Salesperson social media use in business-to-business
relationships: An empirical test of an integrative framework linking antecedents and
consequences. Journal of the Academy of Marketing Science, pp.1-19.
Chung, S. and et. al, 2020. Financial returns to firms’ communication actions on firm-initiated
social media: evidence from Facebook business pages. Information Systems
Research, 31(1), pp.258-285.
Della Corte, V. and et. al, 2020. Impacts of Social Media on Business Value and Performance.
In Handbook of Research on Social Media Applications for the Tourism and Hospitality
Sector (pp. 82-101). IGI Global.
Lal, B. And et. al, 2020. Return on Investment in Social Media Marketing: Literature Review
and Suggestions for Future Research. In Digital and Social Media Marketing (pp. 3-17).
Springer, Cham.
Martín-Rojas, R. and et. al, 2020. Social Media Use and the Challenge of Complexity: Evidence
from the Technology Sector. Journal of Business Research.
Moy, M.M., Cahyadi, E.R. and Anggraeni, E., 2020. The Impact of Social Media on Knowledge
Creation, Innovation, and Performance in Small and Medium Enterprises. Indonesian
Journal of Business and Entrepreneurship (IJBE), 6(1), pp.23-23.
Nematova, G. and et. al, 2020. Social Media, Software Engineering Collaboration Tools and
Software Company’s Performance. In Computational Science and Technology (pp. 179-
188). Springer, Singapore.
Olanrewaju, A.S.T. and et. al, 2020. Social media and entrepreneurship research: A literature
review. International Journal of Information Management, 50, pp.90-110.
Sohail, M.S., Hasan, M. and Sohail, A.F., 2020. The Impact of Social Media Marketing on Brand
Trust and Brand Loyalty: An Arab Perspective. International Journal of Online
Marketing (IJOM), 10(1), pp.15-31.
Yang, J., Basile, K. and Letourneau, O., 2020. The impact of social media platform selection on
effectively communicating about corporate social responsibility. Journal of Marketing
Communications, 26(1), pp.65-87.
7
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