Analyzing Social Media Marketing and Consumer Loyalty at Walmart

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Added on 2019/11/12

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This research report critically analyzes the impact of social media marketing on consumer loyalty, focusing on the Australian retail industry and Walmart. It investigates Walmart's social media marketing strategies, challenges, and their effects on brand awareness and customer loyalty. The report includes an introduction outlining the research problem, aims, and objectives, followed by a literature review covering social media marketing concepts, business procedures, and relevant theories like the AIDA model and social exchange theory. The research methodology section describes the mixed research design, data collection, sampling, and data analysis methods employed. The report highlights current issues in social media marketing, such as content management problems and the failure to engage organic followers. By examining Walmart's past social media campaigns, the report aims to provide insights into effective strategies for improving social media practices and enhancing customer loyalty in the competitive retail landscape. The research emphasizes the importance of understanding consumer behavior and leveraging social media to create a strong brand image and influence purchasing decisions.

Running Head: APPLIED BUSINESS RESEARCH
CRITICALLY ANALYSING THE IMPACT OF SOCIAL MEDIA MARKETING ON
CONSUMER LOYALTY: A CASE STUDY OF WALMART

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APPLIED BUSINESS RESEARCH 2
Abstract
The main aim of this research is to critically analyze the impact of social media marketing on the
consumer loyalty. This report evaluates the social media marketing issues in the Australian retail
industry and Walmart Company. It also analyses the research issue by using the different
chapter. In the first chapter, it describes the introduction of the research topic and also defines the
research aims and objectives. Moreover, it determines the literature review regarding research
issue via gathering information through a journal article, online and offline sources, authentic
websites and textbook. In the next chapter, it defines the research design that would be used by
research to meet the research objectives. In the last, it defines the data analysis method that will
be used to present the information in a comprehensive manner.

APPLIED BUSINESS RESEARCH 3
Table of Contents
Abstract....................................................................................................................................................... 2
Introduction.................................................................................................................................................4
The research problem.............................................................................................................................. 4
Hypothesis............................................................................................................................................... 5
Background............................................................................................................................................. 6
Historical.................................................................................................................................................6
Aims and Objectives of the research....................................................................................................... 6
Literature review......................................................................................................................................... 7
Introduction............................................................................................................................................. 7
Conceptual framework............................................................................................................................ 7
Concept of social media marketing..........................................................................................................7
Theoretical............................................................................................................................................... 8
Business procedures and social engagement............................................................................................8
Association between social media marketing and brand loyalty..............................................................9
Current issues in the system regarding the use of social media practices...............................................10
Theories based on social media marketing............................................................................................11
Research methodology.............................................................................................................................. 13
Research design..................................................................................................................................... 13
Data Collection Method.........................................................................................................................13
Sampling................................................................................................................................................14
Data analysis..........................................................................................................................................14
Ethical consideration............................................................................................................................. 14
References.................................................................................................................................................15
Table of figures
Figure 1: Online sales growth dwarf in retail industry....................................................................5
Figure 2: Conceptual Framework....................................................................................................6
Figure 3: Walmart business model..................................................................................................8
Figure 4: Consumer decision journey..............................................................................................9
Figure 5: Issues in social media marketing techniques...................................................................9
Figure 6: AIDA model of social media marketing........................................................................11

APPLIED BUSINESS RESEARCH 4
Figure 7: Social exchange theory.................................................................................................. 11

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APPLIED BUSINESS RESEARCH 5
Introduction
In the recent business scenario, social media marketing is used by different businesses because it
is beneficial to deal with the global market. Social media platforms enable the different
corporation to channelize their way with respect to customers and act as a perfect way to create a
distinct image in the customer’s mind towards their products and services. It can be evaluated
that awareness of the brand is a centralized process for creating the loyalty among customer.
Although, social media marketing is beneficial for each corporation to increase their brand
popularity with less time and efforts yet there are different challenges faced by the company to
create uniqueness as well as create a trend which is to be omnipresent with advantages (Babin
and Zikmund, 2015). Along with this, word of mouth can be beneficial and disadvantageous for
the organization because it plays a vital role to encourage and discourage the purchasing decision
of people.
This research proposal emphasizes on the impact of social media on the customer’s loyalty. For
this research, an admired retail company named Wal-Mart is selected in order to assess its social
media marketing approaches and their primary flows.
The research problem
Social media marketing approaches require appropriate use of content, slang, and ellipsis to
persuade the high amount of customers towards the brand. It is identified that those companies
use social media practices can get benefits however this strategy is high receptive because one
small word can change the people’s thought. Walmart faces certain challenges with respect to
making content in social media. It is analyzed that this company made a large number of fault by
encouraging its brand awareness from the year of 2014-16 such as using controversial way. For
instance, this corporation had encouraged its strength products and services on the social media

APPLIED BUSINESS RESEARCH 6
websites by using the slogan ‘fat girl costumes’. However, it got negative feedback of customers
hence this initiative of Walmart Company is prone to using significant social media
advertisement (Einwiller and Steilen, 2015). Consequently, the company has lost its large
number of users who follow it on the social media websites which have ultimately effect on the
sales.
Figure 1: Online sales growth dwarf in retail industry
(Source: Ferrell and Fraedrich, 2015).
From the above chart, it can be stated that online sales in higher than the offline sales in the retail
industry. Hence, it is a key issue for those companies that are unable to use the social media
websites.
Hypothesis
H1- This research can be able to deliver beneficial suggestion by using social media marketing
theories and strategies
H0- This research cannot be able to assess the beneficial strategies for companies due to
inadequate information regarding existing theories.

APPLIED BUSINESS RESEARCH 7
Background
Social media marketing issue is a key issue which tends to exist in the recent business scenario.
But, at the same time, it facilitates the number of digital opportunities. It is analyzed that if this
social media issue will not be identified with time then it can create massive disaster and
financial issues in the future. The research of the link between social media marketing and
customer loyalty is a beneficial marketing tool that is required in current scenario (France, et. al.,
2015). Thus, it might be effective for companies to create effective management practices in
upcoming years.
Historical
Social media marketing issues arise from earlier 20’s century. This issue has been seen in each
marketing disaster which is a serious threat for companies. For instance, Walmart has blocked
out to Germany in 2002 for exploiting the data through social media sites (Grant, 2016).
Aims and Objectives of the research
● To explore the role of social media practices used by Walmart for increasing the
customer’s loyalty
● To identify the strategies by which social media marketing is used for persuading
customer base with respect to Walmart
● To illustrate the awareness of Walmart by using social media practices so as buying
behavior can be influenced
● To recommend the effective strategies to improve social media practices by the company

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Impact of
Social
Media
Marketing
Customer
LoyaltyAIDA model
Theory of Social Exchange
Consumer decision journey
APPLIED BUSINESS RESEARCH 8
Literature review
Introduction
A literature review is an effective part of research which develops an understanding regarding
substantial findings. This information is gathered from different journal articles, textbook, online
articles and company’s websites. This chapter emphasizes on the assessment of research issue
and develops critical analysis regarding research topic.
Conceptual framework
Figure 2: Conceptual Framework
Concept of social media marketing
According to the He et al. (2015), Social media marketing is the term which is used to the
advertisement of the products and services by using the digital communication and social media
practices. There are certain aspects which are related to marketing tools like maintaining
patience, attractive content, and creating a loyal base to a customer who actually reacts towards
the message posted on the digital websites. It also generates a connection amid accessibility and

APPLIED BUSINESS RESEARCH 9
advertisement of products and services on social websites. Consequently, these aspects grow the
business by leveraging the customer response with respect to specific advertisements.
In contrast to this, Kim et al. (2014) opined that these aspects such as attractive tagline and
engaging content can unfavorable impact on the marketing procedure hence company should
emphasize on these aspects during the marketing. Moreover, taglines, eye catchy slogan, and
product’s detail can also injure the emotional sentiments while inappropriate contents are
exercised.
Theoretical
Walmart is using social media assimilation theory for marketing its products and services. This
structure is known for its expensive environment and has a disability to keep the confidential
data. Hence, it can be stated that if the corporation uses this theoretical structure then they may
face issues in an upcoming year (Wal-Mart, 2017).
Business procedures and social engagement
In the view of Kim and Park (2013), Walmart primarily uses a strategy to acquire business
companies for penetrating into a new market and also keep certain components in its marketing
process. Moreover, marketing tool is mostly expensive hence company should adopt the cost-
effective tool such as social media in its business procedure.
Figure 3: Walmart business model

APPLIED BUSINESS RESEARCH 10
(Source: Kim and Park, 2013).
Association between social media marketing and brand loyalty
According to the Kumar et al. (2016), consumer behavior extensively relies on word of mouth
and a large amount of influential act is done by the social media. For example, feedback about
any products and services can modify the people’s perception. Moreover, in the current business
scenario, the customer goes through different ways while taking the purchasing decision because
there are different factors which may affect the customer’s decision-making. In the initial level,
the customer generates a plan to buy products by analyzing the negative and positive reviews of
products on social media. Hence, it is analyzed that customer takes completely differ decision as
compared to the initial plan.
Figure 4: Consumer decision journey

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APPLIED BUSINESS RESEARCH 11
(Source: Kumar et al. (2016).
Current issues in the system regarding the use of social media practices
Figure 5: Issues in social media marketing techniques
(Source: Oberoi, et. al., 2017).
Lack of proper contact with customers on social media websites
There is a large number of company which makes page on social media websites but it is non-
existed and outdated to engage with the customers. Further, customers do not demonstrate their
interest towards those companies which do not try to interact with them. Together with, they
moved towards the other companies which regularly interact with the customers (Oberoi, et. al.,
2017).
Issues in social
media
marketing
techniques
Lack of proper contact
with customers on
social media websites
Failure to
pool organic
supporters
Content
management
issues
Motivate to share the
information through
social media
platforms

APPLIED BUSINESS RESEARCH 12
Failure to pool organic supporters
It is a hard thing to keep the relation on public pages in order to pool large number of new
followers frequently. Further, due to the outdated public page on the social sites, new followers
show their less interest towards the company as compared to others (Ramanathan, et al., 2017).
Content management issues
Content makes the link with customers and their perception because it is a prime component to
pull the attention of customers towards the products and services. Large number of corporation is
unable to generate eye catchy content and unable to maintain the value of sentiment for
customers which lead the customers to go towards another brand (Rapp, et al., 2013).
Motivate to share the information through social media platforms
It is analyzed that sharing the information through social media enables the company to pull the
attention of customers and helps to attract organic customers. In this way, the company should
create worth sharing content and also look beyond the product’s advertisement (Schramm-Klein,
et al., 2015).
Theories based on social media marketing
There is different theoretical concept regarding social media marketing which is considered by
large number of organization to get competitive benefits. In this way, AIDA model is exercised
by dynamic corporations to build product and brand awareness among people. This model is
related to data analysis tool because it enables the company to enlarge awareness about products
and generates logic of interest and aspiration among the people (Sheth and Sheth, 2017).
Figure 6: AIDA model of social media marketing