UNIVERSITI TEKNOLOGI MARA

LSS ACADEMY SDN BHD: THE EVALUATION OF SOCIAL MEDIA EFFECTS ON MARKETING COMMUNICATIONS FROM CONSUMERS PERSPECTIVE

PREPARED FOR: ENCIK ZULKEPLY KAMARUDDIN

PREPARED BY: NURSHEILA BINTI AHMAD 2008500133

BACHELOR OF BUSINESS ADMINISTRATION (HONS) (MARKETING) FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA SHAH ALAM

NOVEMBER 2010
1

LETTER OF TRANSMITTAL

8 NOVEMBER 2010 Encik Kamal Mohd Nor The Head of Program Bachelor of Business Administration (Hons) (Marketing) Faculty of Business Management, Universiti Teknologi MARA 40450 Shah Alam, Selangor Darul Ehsan

Dear Sir, SUBMISSION OF PROJECT PAPER Attached is the project paper entitled LSS ACADEMY SDN BHD: THE EVALUATION OF SOCIAL MEDIA EFFECTS ON MARKETING COMMUNICATIONS FROM CONSUMERS PERSPECTIVE to fulfill the requirement as needed by the Faculty of Business Management, Universiti Teknologi MARA Shah Alam for your kind perusal. Thank you.

Yours sincerely,

Nursheila binti Ahmad 2008500133 BBA (Hons) (Marketing)

BACHELOR OF BUSINESS ADMINISTRATION (HONS) (MARKETING) FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA SHAH ALAM

DECLARATION OF ORIGINAL WORK

I, Nursheila binti Ahmad (NRIC: 850317-14-5760) Hereby, declare that, i. This work not previously been accepted in substances for any degree, locally or overseas and it is not being concurrently submitted for this degree or any other degrees. ii. iii. This project paper is the result of my independent work and investigation, expect where otherwise stated. All verbatim extracts have been distinguished by quotation marks and sources of my information have been specifically acknowledged.

Signature: ______________________

Date: 8 NOVEMBER 2010

ACKNOWLEDGEMENTS First and foremost, I would like to thank Allah S.W.T. for giving me opportunity and strength to accomplish my project paper on LSS ACADEMY SDN BHD: THE EVALUATION OF SOCIAL MEDIA EFFECTS ON MARKETING COMMUNICATIONS FROM CONSUMERS PERSPECTIVE. I would like to express profound gratitude towards my supportive advisor, Encik Zulkeply Kamaruddin and also dedicated examiner, Puan Norliah Abd Aziz for their invaluable support, encouragement, supervision, and dazzling suggestions for my research. I am as ever, especially indebted to my parents, for their love and strong support throughout my life. Not forgotten, my sincere thanks and appreciations to my beloved friends and colleagues, who shared their knowledge, brilliant ideas, and experiences with me. I am heartily thankful to all my Managing Director in LSS Academy, Dr. A.Aruleswaran, my supervisor, Denison Chua (Sales & Marketing Manager), Penton Wong (IT Manager) and all my colleagues whose encouragement, guidance and support from the initial to the final level enabled me to develop an understanding of the subject. Last but not least, I offer my regards and blessings to all the respondents and for those who supported me in any respect during the completion of this project paper. Thank you. Yours sincerely, Nursheila binti Ahmad 2008500133 BBA (Hons) Marketing

TABLE OF CONTENTS LETTER OF TRANSMITTAL DECLARATION OF ORIGINAL WORK ACKNOWLEDGEMENT TABLE OF CONTENTS FIGURES AND TABLES ABSTRACT EXECUTIVE SUMMARY TITLE 1.0 INTRODUCTION 1.1 BACKGROUND OF THE COMPANY 1.1.1 MISSIONS 1.1.2 WHY COMPANY INVEST WITH LSS ACADEMY 1.1.3 PRODUCTS 1.2 BACKGROUND OF THE STUDY 1.3 PROBLEM STATEMENT
1.4 SIGNIFICANCE OF THE STUDY

2 3 4 5 7 8 9 PAGES

12 14 16 17 23 26 28 29 31 33 34 35 40 45 48 51 54 58

1.5 RESEARCH OBJECTIVES 1.6 THEORETICAL FRAMEWORK 1.7 HYPOTHESIS 1.8 LIMITATIONS OF THE STUDY 1.9 DEFINITION OF TERMS 2.0 LITERATURE REVIEW 2.1 SOCIAL MEDIA 2.2 WEB 2.0 2.3 SOCIAL MEDIA MARKETING 2.4 INTERACTIONS THROUGH SMP 2.5 AWARENESS OF SMP
5

2.6 CONSUMER 2.0 WEB 2.0 CITIZENS 3.0 RESEARCH METHODOLOGY 3.1 INTRODUCTION 3.1.1 DESCRIPTION AND JUSTIFICATION OF THE METHODS 3.2 RESEARCH DESIGN 3.2.1 DATA COLLECTION METHOD (PRIMARY AND SECONDARY DATA) 3.2.2 THE QUESTIONNAIRE DESIGN 3.2.3 TARGET POPULATION AND SAMPLING DESIGN (SAMPLING FRAME, SAMPLE SIZE, SAMPLING TECHNIQUE) 3.2.4 RELIABILITY AND VALIDITY 3.2.5 DATA ADMINISTRATIVE AND ANALYSIS 4.0 FINDINGS AND ANALYSIS 4.1 DEMOGRAPHIC PROFILES 4.2 AWARENESS OF SMP 4.3 INTERACTIONS THROUGH SMP 4.4 FREQUENCY TABLES FOR TECHNOGRAPHIC PROFILES OF SMP USERS CREATOR, JOINER, SPECTATOR, COLLECTOR, AND CRITIC 5.0 CONCLUSIONS AND RECOMMENDATIONS BIBLIOGRAPHY APPENDICES

62

72 73

75 76 77

79 80

82 88 90 93

112 120

FIGURES AND TABLES

Table 2.1 Table 4.1 Table 4.2 Table 4.3 Table 4.4 Table 4.5 Table 4.6 Table 4.7 Table 4.8 Table 4.9 Figure 1.1 Figure 2.1 Figure 2.2 Figure 2.3 Figure 4.1 Figure 4.2 Figure 4.3 Figure 4.4 Figure 4.5

Online Community Needs Frequency Table of Gender for Social Media Users Frequency Table of Groups of Age for Social Media Users Frequency Table of Races for Social Media Users Frequency Table of Nationality for Social Media Users Frequency Table of Monthly Income for Social Media Users Frequency Table of Do you aware of SMP? Frequency Table of Do you / your organization use SMP tools? Frequency Table of How long have you been using this tool? Frequency Table of Are you familiar with the concept of UGC? Theoretical Framework Key Social Platforms The Closed Loop of Needs Participation Model of Web 2.0 Service Percentage of Gender for Social Media Users Percentage of Age Group for Social Media Users Percentage of Races for Social Media Users Percentage of Nationality for Social Media Users Percentage of Monthly Income for Social Media Users

ABSTRACT Purpose The evaluation of social media as affective marketing

communications tool and channel, and also the identification of consumers profile of social media in Malaysia. Design / methodology / approach The quantitative research was conducted by arranging consumer survey among social media users. The deductive logic was used to verify the hypothesis. Findings The general Malaysian consumer profiles were identified. The hypotheses were proven that social media can be a valuable tool and channel for marketing communications. Research Limitations / Implications The research was designed to test only the users of Social Media Properties (SMP). Even though, it gathered the needed data to help marketers in their search for suitable tools when marketing in social media environment. Originality / Value The conducted study added the knowledge to the indicated information gap in academic literature regarding the social media usage for marketing campaigns from the consumer perspective. It defined the main social media tools and tested the consumer perceptions about the possible practices. Keywords Social media, Web 2.0, social media marketing, marketing communications.

EXECUTIVE SUMMARY Social media is a conversation supported by online tools. People are not just demographics anymore; to connect with them, we need to understand that relationships are more powerful than marketing. Every company seems to be jumping onto the social media bandwagon, but some companies do it better than others. There is no denying that social media is changing the way companies communicate in the pursuit of brand building and commerce. Social media is continuously evolving, and staying abreast of its impact and potential is critical to the success of our business. An important transition in the use of social media for marketing purposes is taking place. A rapidly increasing segment of marketers are gaining the experience required to advance from novice to competent practitioner capable of achieving social marketing objectives and proving ROI. Social media has opened a whole new world of possibilities for marketers. In the past year, marketers have been captivated by the ample hype about Twitter, Facebook, blogs, and other social media platforms. Their reaction was, for the most part, counter-intuitive to proven marketing principles. They jumped into this new medium thinking tactically about the latest social media platforms they could add to the mix rather than thinking strategically about the objectives they needed to achieve. In the year ahead, we see social marketing maturing to the point where a majority of organizations will be in transition from the trial phase to the strategic phase of the learning curve. We see marketers first researching the medium (starting with resources like this report) and monitoring audiences to determine

realistic objectives, then formulating tactics, and implementing tools for accomplishing those objectives. In addition, companies are just beginning to tap the potential of collaborative, community focused websites, known collectively as social media or Web 2.0, as a communications medium. Early attempts to integrate social media into the marketing mix have often treated social media marketing (SMM) as an experimental, viral channel that exists outside the organizations primary marketing and advertising initiatives. These viral initiatives demonstrate a willingness to innovate and can provide excellent feedback on extreme changes in creative direction. However, the unpredictable nature of viral success and the uneven return on investment (ROI) when such efforts are successful, make it an inadequate long-term SMM strategy. Furthermore, while companies increasingly understand the need for ongoing participation in social media, the lack of dedicated time, resources, and expertise in the medium hinders many companies from developing social media as a more robust marketing and advertising channel that can be integrated with the rest of their marketing plan in cross-channel campaigns. These marketers report inadequate support from traditional marketing vendors in their SMM efforts, as traditional agencies often try to apply traditional tactics in an online environment that is typically hostile to those attempts. Last but not least, detailed planning, execution, and reporting of SMM by an interactive agency with SMM expertise can make social media a viable and powerful channel within an integrated marketing campaign, complementing and enhancing the results from other efforts and increasing ROI for the entire initiative.

10

CHAPTER ONE

11

1.0 INTRODUCTION

1.1 Background of the Company

Quality + Speed X Fusion = Sounder Bottom Line Lean 6 Sigma is the de-facto methodology in the market today for organizations to adopt continuous improvements and drive towards maximized returns to the share holders. Lean Six Sigma (LSS) Academy Sdn Bhd is a thought leader in applying deploying Lean 6 Sigma to product and service firms in South Pacific & South East Asia. LSS Academys deep, value-based management expertise provides them with a clear framework to connect value creation priorities to Lean 6 Sigma project planning and execution initiatives. LSS Academy is creating a record of successful consultancy, building the thought-leading practices in the critical areas of value creation and superior shareholder returns.

LSS Academy Sdn Bhd, an MSC Status Company, founded in 2007 by Dr.Arul Aruleswaran, aims to create the foundations in capability, technology and cultural change management to accomplish, achieve, and sustain greater returns of shareholder value and returns. The LSS Academys team formerly operated within IQL Consulting and partner, Kirtland Leadership Propriety Ltd, has successfully provided consultancy services for several international clients. LSS Academy is creating a record of successful implementation of Lean Six Sigma whilst building the thought-leading practices in the critical areas of value creation.
12

LSS Academy delivers the strategic insight and execution methodology that is required to surpass the goals of growth, speed and cost to businesses, organizations, and the personnel that are driving towards continuous improvement, innovations, and complexity elimination.

LSS Academys unique value creation approach is to build business culture by addressing all four leadership levels: personal, interpersonal, managerial, and organizational that creates a sustainability effect on the capability to grow and succeed in a changing environment.

13

1.1.1 Missions

a)

Customer Satisfaction LSS Academy believes that the success of a business rests entirely

with the successful relationship with its clients. This organization is designed around client relationships. As a result of the client-centered approach and the results delivered, virtually 100% of our clients are willing to serve as references.

b)

Intellectual leadership LSS Academy brings new, innovative solutions to their clients to

help them create strategic insight, improve operational performance, and deliver sustained value. LSS Academy thoughts leadership is embodied in principals of Lean 6 Sigma, Innovation and Business Process Automation.

c)

Value Creation LSS Academy works and guides their clients to maximize the

intrinsic value of their organization, focusing on value creating activities aimed at measures such as Customer Satisfaction, Revenue Growth, Profitability, Market Share, Wallet Share, Cross-Sell Ratio, etc. LSS Academy is unique as the teams are able to work with all spectrums of clients from generating strategic insight, to leading hands-on

implementation, to creating deep client capability.

14

d)

Investing in People LSS Academy believes in helping their clients to internalize their

methodologies, encouraging trainees, trainers, change agents, Black Belts, Green Belts, and sponsor to grow to their individual potential. Thus, with every client relationship LSS Academy creates sustainable human capital in the client organization, eliminating the need for external consultation support in 18-24 months.

15

1.1.2 Why Company Invest with LSS Academy

LSS Academy prides itself on Business Excellence & Performance, providing not only Coaching & Mentoring, but also Training & Certifications, and Change Management & Leadership. Among the benefits that company can gain by investing with LSS Academy are as follow:

Increase Uptime Lowering Costs & Lower Cost of Quality Improve Teamwork Culture & Improve Productivity Maximize Asset Utilization Faster Customer Response Less Inventory Optimized Shop Floor Utilization Flexibility-Multi-Product Lines Simplicity of Operation Improved Response with a Multi-Product Line Reduced wait time, queue time, and other delays Improved product warranty and compliance Reduced Inventories and Improved Working Capital Improved Customer Response, Relationships Gain in Market Share with Improved Revenues & EP Improve Supplier Performance Improve Complaint Management
16

1.1.3 Products

LSS Academy has come out with LSS Solutions which include different aspect of product needed such as Leadership Series, Enterprise Performance, Delighting Customers, Maximizing Shareholders Values, Design & Innovation, and Technical. The brief introductions of each section are as follow:

a) Leadership Series This is a program for Champions who play a pivotal role in a successful Lean 6 Sigma initiative. They serve as mentors to project teams and act as a bridge between Black Belts and organization management. Without Champions, efforts can become entangled with internal obstacles, become misaligned with core business objectives, lose focus and track of time, and may not yield expected benefits. However, Champions need help to be successful. The Lean 6 Sigma Champion program provides that help by exploring basic Champion roles, investigating a sustainable support infrastructure for Champions and preparing Champions to avoid common pitfalls and lead successful Lean 6 Sigma initiatives.

b) Enterprise Performance This workshop is designed for senior staff as a major stepping stone on a journey to creating a Lean Enterprise in their own organization. In order to develop a truly Lean Enterprise it is necessary for leaders to understand what
17

lean thinking is, how it needs to be approached, what their role is in leading the organization and how they need to instill a set of, often, new behaviors and levels of engagement. A significant step on this journey is participating in the Lean for Management Workshop. Participants will learn the following:

Gaining an understanding of what Lean Thinking is Gaining an understanding of what it means to you Gauging where you are on your lean journey Establishing a broad implementation plan and the next steps

to take

Using the QS Finance Model, the workshop will provide you with insights into what true Lean Enterprise are, the different elements that must be addressed, where you are on your lean journey, and perhaps most importantly provide a framework for you to consider how you might go about creating a Lean Enterprise in your organization. It ensures that the initiative begins with a broad, cohesive approach to lean transformation, and is led by a knowledgeable, unified management team.

c) Delighting Customers This is a program involving intense classroom training. This course provides the analytical tools and practical skills to bring results to a manufacturing environment. This course takes candidates through a proven, step-by-step methodology on the transfer of knowledge and process skills that
18

leads to improved project results through support of Black Belt initiatives and enhanced technical problem solving skills. The widely accepted DMAIC model is taught, including the popular principles such as histograms, Gage R&R, flow charts, data collection and measurement, failure mode and effects analysis, voice of the customer, and many more.

Participants will learn how to apply statistical methods for business process improvements like:

Communicating a business strategy across the organization Integrating with Lean Manufacturing, TOC, & other improvement methods Applying the DMAIC improvement process Selecting successful Six Sigma projects and project teams Planning and executing projects Significantly increasing profitability through Six Sigma projects Selecting the right statistical tools

d) Maximizing Shareholders Values Lean 6 Sigma Black Belts are the centerpiece of the program integrating the strategies of Lean and 6 Sigma. Lean 6 Sigma Black Belts are improvement experts that are deployed to conduct the project work that delivers to your overall goals and objectives. Throughout development, participants internalize the methods and tools of Lean and 6 Sigma. Participants apply the new knowledge from each session immediately between the training sessions. It is this
19

mechanism that ensures progress is being made quickly, and that the learning of Lean Six Sigma Black Belt methods and tools takes place with real world goals in mind.

Lean 6 Sigma Black Belt Training program builds competent, data-driven Lean 6 Sigma practitioners. The curriculum follows the DMAIC phases, teaching candidates how to integrate a variety of Lean Six Sigma tools into an overall approach to process improvement. Participants are taught how to define and successfully launch a project, how to transition it from phase to phase, and finally, how to complete a project and evaluate its success.

There will be a hands-on, real-life approach to Lean Six Sigma Black Belt training. Candidates work on an actual business project and apply classroom techniques to the project. The Black Belt program is technically challenging to ensure that all graduates learn how to implement solutions that can produce financial results. Instructors provide formal project specific feedback to participants in each phase. Students are also encouraged to schedule one-onone mentoring sessions with their instructors to discuss project specific hurdles.

e) Design & Innovation TRIZ is rapidly gaining popularity as a powerful methodology for enhancing innovation and creativity inside corporate environments. Research and development teams, product developers, manufacturers and service
20

businesses alike are finding TRIZ to be a powerful tool for solving practical problems and building new technologies in their business.

TRIZ helps companies generate more solutions of a higher quality in less time. TRIZ is applicable to every industry and in every environment for the acceleration and innovation of problem solving. TRIZ is also used to improve the scope and strength of intellectual property. This program offers an intensive introduction to the foundational elements of TRIZ and provides an understanding of how to use them effectively to solve problems in a manner that is predictable, reliable and creative.

f) Technical Basic Minitab Training maximizes your ability to improve quality. It will teach you how to use Minitab to implement successful data-driven improvement projects. Our training will also help you make more effective business decisions by teaching you how to more effectively analyze your data with Minitab. You will learn when and how to apply Minitab and practice your new skills immediately by working through scenarios and exercises that mirrors your own work. Topics covered are as follow:

Charts Histograms Boxplots Dotplots

21

Scatterplots Tables Measures of Location and Variation ODBC

Advance Minitab Training augments your graphical analysis skills using Minitab's powerful statistical tools. Develop the foundation for important statistical concepts such as hypothesis testing and confidence intervals. By analyzing a variety of real world data sets, learn how to match the appropriate statistical tool to your own applications and how to correctly interpret statistical output to quickly reveal problems with a process or to show evidence of an improvement. Learn how to explore critical features in your processes through statistical modeling tools that help to uncover and describe relationships between variables. A strong emphasis is placed on making good business decisions based upon the practical application of statistical techniques commonly found in manufacturing,

engineering, and research and development endeavors. Tools covered include:

t-Tests Proportion Tests Tests for Equal Variance Power and Sample Size Correlation Simple Linear and Multiple Regression

ANOVA & GLM

22

1.2

Background of the Study

Technological development has been seen as one of the main factors effecting companys processes and profitability in the last century. The birth of the Internet and its success in changing our society has been largely researched in various subjects and defined in various terms. But as years passes by, the Internet evolves and creates new rules for companies interacting and doing business with their customers and partners.

The new applications and services are being developed and offered in order to catch up with changing information society define new concepts of doing business. In the last few years the terms of Web 2.0 and social media has emerged as the definitions for second generation of web based services and communities that emphasize online collaboration, networking and user created content (Eikelman et al, 2008).

According to Strategy Analytics report (2007), social media users will exceed 1 billion by 2012. The enormous growth of social networks (Facebook, Twitter, MySpace, etc.), Blogs, Wikis and consumers participation in these platforms forces companies to reevaluate their business strategies. The recent investments by leading companies like Microsoft (240 millions in Facebook) and Google (900 millions in MySpace) in social networks gives a clear signal that

23

companys presence in dialogue with consumer gains a new meaning in terms of communication strategy.

LSS Academy is now implementing social media marketing and Web 2.0 due to the emerging world of technology. Besides promoting and selling its product through the Internet, LSS Academy also gets the chances to enhance its marketing communications with potential and existing clients, partners, and also sponsors.

LSS Academy has a positive judgment that social media marketing is a great engagement tool with online communities to generate exposure, opportunity, and sales. It is the process of promoting the site or business through social media channels and it is a powerful strategy that will get the links, attention and massive amounts of traffic. Social media marketing enables marketers to take engagement to the next level. It is about having a dialogue in which consumers and marketers are alike participate and respond.

There is no other low-cost promotional method out there that will easily give large numbers of visitors, some of whom may come back to the website again and again. Common social media marketing tools include Twitter, Blogs, LinkedIn, Facebook, MySpace, YouTube, and many more. It is great for creating mindshare, branding initiatives, and brand awareness.

24

Social media is also a part of brand experience when users interact in these channels. If the experience is positive, high-energy, interesting or attractive, all of these elements will support a unique brand experience and support ongoing initiatives in this area. Both positive and negative experiences can really have great impacts on a brand. Few examples of positive experiences include interesting videos, useful contents, flash games, good products, and attractive contests based on user participation. Each of these methods helps engage in a deeper dialogue or closer interaction with the existing consumer and also potential customer.

Back to the basic, the bottom line for many marketing campaigns is to bring an increase in sales. Sometimes this is done directly and sometimes it is a very indirect process. It is very hard to create a social media marketing campaign that will result in direct sales. This is because marketers are reaching consumers in a non-purchasing stage of the cycle. It contrasts from standard SEO (search engine optimization) where consumers are looking for what youre selling and at the point of purchase already. On the other hand, social media is less intrusive, and a part of the reason people engaged is because there is more than just a selling message. Social media marketing is also good for brand building, relationship management, product development, reputation management, customer interaction, customer feedback, customer support, community building, and etc.

25

1.3 Problem Statement

Unquestionably, social media has taken the web by storm over the last few years. As Internet users flock to community-focused and collaborative websites, marketers have struggled to determine effective ways to communicate their brand messaging to that audience.

Some companies may still be wondering why they should go to all this elaborate effort in the first place. The reasons are many and compelling. Audiences in general are moving from traditional media to the web and from the static web to Web 2.0 / social media as their preferred free time activity, according to a recent study by Fox Interactive Media (FIM). Social network users spend more than seven hours per week on social networks, and most of them list social media interaction as their favorite leisure activity, above television.

A similarly compelling survey from IT Toolbox, whose participants consisted of business managers, developers, executive decision-makers, IT analysts, and IT decision-makers, indicated that social media content was their most trusted source of information for purchasing decisions, second only to vendor websites as a reference for purchasing decisions. This same audience of decision-makers indicated that they spent on average of 2.93 hours per week on social media websites, as compared to 2.89 hours per week on editorial media, such as Information Week, CNN, and WSJ.com.
26

Nevertheless, there is a clear shortage of academic literature which defines the social media environment and Web 2.0 application. Moreover, it is not clear what applications and how they should be used by the company in order to make these communications more valuable. Finally, this subject is not enough researched in different environments. The most of the rare academic literature and professional insights are dedicated to US market and there are no findings presented how consumers perceive companys initiatives to influence their private space on the net in Malaysia.

So clearly, social media is a growing channel with a large and influential audience that is too big to be ignored for long. Viral standalone campaigns can sometimes achieve success in this venue, but for social media to reach its maximum potential as a marketing communications tool, effective strategies for integrating it into an organizations primary marketing and advertising efforts need to be established.

27

1.4 Significance of the Study

It is essential to stay current on the latest industry trends because social media evolves at a rapid pace.

Define social media and Web 2.0 and its benefits. Evaluate the influence for different types of Web 2.0 applications by the consumer in terms of communication interactivity.

Analyze the general patterns of the consumers perception about the differences between social media and traditional media in Malaysia market.

Discover the evaluation of social media effects on marketing communications.

28

1.5 Research Objectives

According to Constantinides and Fountain (2008), in order to enable Social Media Properties (SMP) to integrate into corporate commercial strategy, these areas must be researched in greater depth; the effects of Web 2.0 applications on consumer behavior, differences between exiting Web 2.0 applications effectiveness and their relationship with traditional mediums. As this study concentrates particularly on the marketing communication strategies, the two main aims are identified below, followed by the objectives of the research:

Aim 1 - To determine the social media environment and identify Malaysian consumers profile:

To define the main changes brought by social media in marketing communications environment.

To identify Who are the users of SMP in Malaysia? To identify What SMP are they using? To identify Where and How are they using SMP?

29

Aim 2 - To evaluate the SMP effectiveness as marketing communication tool and channel:

To verify if the interactions through SMP could result in positive outcomes for the company.

To verify if different SMP have to be used for different communication purposes.

To verify if SMP could be a valuable channel in changing consumers attitudes towards the company.

To verify if communications through SMP triggers the positive word of mouth.

To verify the level of involvement needed by the company in order to maintain positive relationship with consumer.

To verify if different type of consumers use different type of mediums

30

1.6 Theoretical Framework

A theoretical framework is the foundation on which the entire research project is based. The relationship between the literature survey and the theoretical framework is that the former provides a solid foundation for developing the latter. Variables are anything that can take on differing or varying values. There are four types of variables: Dependent variable Independent variables Moderate variables Intervening variables

Interactions through SMP Awareness of SMP Technographic profiles of SMP users (Creator, Joiner, Spectator, Critic, Collector) The Evaluation of Social Media Effects on Marketing Communications

Dependent Variables (DV)

Independent Variables (IV) *SMP Social Media Properties

Figure 1.1: Theoretical Framework

31

In this research, there are three independent variables that will influence the dependent variable:

i.

Interactions through SMP

The interactions through Web 2.0 applications generate different outcomes for the company. Not only is interactivity a fundamental difference between traditional media and online media, but the various online tools also differ in their degree of interactivity.

ii.

Awareness of SMP

SMP will create awareness of the public since marketing communications is evolving and Web 2.0 applications are now being used widely all over the world.

iii.

Technographic profiles of SMP users (Creator, Joiner, Spectator, Critic, Collector)

To investigate if there is a significant relationship between technographic profiles (Creator, Joiner, Spectator, Critic, Collector) of the consumer and the preferred media channel chosen.

32

1.7 Hypothesis

H0 = Null

H1 = Alternate

H0 There is no significant relationship between the interactions through Social Media Properties and the evaluation of social media effects on marketing communications. H1 There is a significant relationship between the interactions through Social Media Properties and the evaluation of social media effects on marketing communications.

H0 There is no significant relationship between the awareness of Social Media Properties and the evaluation of social media effects on marketing

communications. H1 There is a significant relationship between the awareness of Social Media Properties and the evaluation of social media effects on marketing

communications.

H0 There is no significant relationship between technographic profiles of Social Media Properties users (Creator, Joiner, Spectator, Critic, Collector) and the evaluation of social media effects on marketing communications. H1 There is a significant relationship between technographic profiles of Social Media Properties users (Creator, Joiner, Spectator, Critic, Collector) and the evaluation of social media effects on marketing communications.
33

1.8 Limitations of the Study

In conducting this research, there were certain limitations that the researcher had discovered. It is very challenging to distribute the questionnaires to the respondents through web survey. Occasionally, they will give incorrect and irrelevant answer to each sequence of questionnaire. It is quite tough to control the obstacle since the research is conducted virtually.

Furthermore, there is a doubt that the respondent may not really exposed to the terms of Social Media Properties (SMP) and Web 2.0 which can affect their understanding in answering the questionnaires. Most of the SMP users might know how to use the Web 2.0 application very well, or can learn it naturally as they get used with the applications, although they are not really aware of the terms and definitions.

Finally, the information for this research is very hard to attain because this subject is not enough researched in different environments. Most of the academic literature, professional insights, and empirical study are dedicated to US market and few Europe markets compared to Malaysia market. This limitation will contribute to the lack of local sources in Malaysia.

34

1.9 Definition of Terms

a)

Social Media

The real power of people can be noticed in the new revolutionized media channel social media. According to Mayfield (2008), social media is best understood as a group of new kinds of online media, which share most or all of the following characteristics; participation & engagement, openness, conversation, community, and connectedness.

According to Anthony Bradley (2010), social media is a set of technologies and channels targeted at forming and enabling a potentially massive community of participants to productively collaborate. IT tools to support collaboration have existed for decades. But for social media technologies such as social networking, Wikis and blogs, enable collaboration on a much grander scale and support tapping the power of the collective in ways previously unachievable.

b)

Web 2.0

Web 2.0 should be perceived as the new tools for the marketing communication mix, facilitator and enabler of social media. Constantinides and Fountain (2008) defined Web 2.0 as a collection of open-source,
35

interactive and user-controlled online applications expanding the experiences, knowledge, and market power of the users as participants in business and social processes.

Accessed from Webopedia.com, Web 2.0 is the term given to describe a second generation of the World Wide Web (www) that is focused on the ability for people to collaborate and share information through online. Web 2.0 basically refers to the transition from static HTML web pages to a more dynamic web that is more organized and is based on serving web applications to users. Other improved functionality of Web 2.0 includes open communication with an emphasis on web-based communities of users and more open sharing of information. Over time, Web 2.0 has been used more as a marketing term than a computer-science-based term. Blogs, wikis, and web services are all seen as components of Web 2.0. Web 2.0 was previously used as a synonym for Semantic Web, but while the two are similar, they do not share precisely the same meaning.

c)

Social Media Marketing

Geoff Livingston (2008), author of Now is Gone and CEO of a Media Relations Firm said that social media marketing really requires networking skills first, because we are building relationships, not overtly promoting. Its a unique blend of networking skills (relationships); traditional Public Relations
36

skills (building goodwill), marketing skills (giving customers what they want), and customer service (delivering resolutions to issues).

According to About.com, social media marketing consists of the attempt to use social media to persuade consumers that one's company, products and / or services are worthwhile. Businesses use social media to sell their products or services. To use social media marketing effectively, businesses have to be perceived as members of the social media community and willing to interact with other members.

d)

Marketing Communication

According to Websitemarketingplan.com, marketing communication is a broad term that encompasses all the ways businesses interact and communicate with a market. Those in general marketing, brand managers, Internet marketers, direct marketers, advertising managers / agencies, publicists, public relations professionals, promotions specialists, and sales people, all participate in some aspect of marketing communications. For most, the ultimate goal is to present an integrated, uniform impression across all forms of communication. This means addressing product, service, and company communication, goals in the business and / or marketing plan.

37

According to David Picton (2005), marketing communication is the management process that integrates the marketing function relates to audience to realize the wider brand and its consistency.

e)

Technographics

According to Wikipedia.com, technographic is a segmentation of market research analysis tool used to identify and profile the characteristics and behaviors of consumers through the process of market segmentation. Traditionally market and researchers lifestyle focused to on various demographic, and describe

psychographic,

schemes

categorize

homogeneous clusters of consumers that comprise possible target markets.

With the advent of personal computers and home video in the late 1980s and the explosion in Internet use, personal digital assistants, BlackBerry, video games, cell phones, and others in the 1990s, information and communication technologies have emerged as a central focus and defining force in a wide range of occupations and lifestyles. Accordingly, market researchers realized the need for a segmentation scheme based on the role that technology plays in consumers' lives.

38

CHAPTER TWO

39

2.0 LITERATURE REVIEW

The last century was a gold age for the media development. The new technologies as telephone, radio, and television have changed peoples lives forever. The new ways of communications have been successfully adopted and become a norm. The last decade of the century brought the new innovative technology Internet. As predicted by Newman (1991), Internet:

Altered the meaning of geographic distance. Allowed the huge increase in the volume of communication. Provided the possibility of increasing the speed of communication. Provided opportunities for interactive communication. Allowed forms of communication that was previously separate to overlap and interconnect.

Grieco and Holmes (1999) (cited in Combe et al, 2003) identifies three powerful features of Internet:

1)

Disintermediation or the removal of brokers by allowing direct

communication across spatial and sociometric distance. 2) Asynchronicity of the removal of temporality as a barrier to

communications. 3) Oculacy or the ability to communicate messages through images.

40

According to Hermeking (2006), the global spread of modern technology, including information, and communication technology (ICT), is commonly regarded both as an indicator of the postmodern era of globalization and as the very precondition for that era of intensive worldwide interactions of people and exchanges of goods, services, information, and capital. Hoffman (Hoffman et al., 1995) argues that the popularity of the WWW as a commercial medium (in contrast to other networks on the Internet) is due to its ability to facilitate global sharing of information and resources, and its potential to provide an efficient channel for advertising, marketing, and even direct distribution of certain goods and information services.

According to Linda Peters (1998), the Web presents a fundamentally different environment both as a medium and as a market from traditional communication channels perspective. It creates the market space a virtual realm where products and services exist as digital information and can be delivered through information-based channels (Rayport and Svikola, 1994). The companies and consumers quickly adopted the new concept of the new interactive world for their own benefits. These interactive channels allowed companies to reach new markets or have a greater influence in the existing ones (i.e. media companies transferred their newspapers in order to reach new audiences) and the consumers had an opportunity to save time and money by communicating, looking for information, or buying product and services online.

41

According to Liu & Shrum (2002), emergence of new media (Internet), brought new models of interactivity; user-to-user and userto-message. Contemplating about user-to-user interactivity, Ha and James (1998) suggested that The more communication in a computer-mediated environment resembles interpersonal communication, the more interactive the communication is. Steuer (1992) defined users-to-message interaction as follows: The extent to which users can participate in modifying the form and content of a mediated environment in real time.

Commercial online services and the introduction of the web have created the potential for a mass interactive dialogue between exchange parties (Peters, 1998). The world have witnessed the evolution of a universal interconnected network of audio, video, and electronic text communications that blurred the distinction between interpersonal and mass communication, and between public and private communication (Neuman, 2003).

The new market space changed the behavior of the people and the communication models. The shift is then from a one (firm)-to-many (consumers) model of communication to the many-to-many model where contribution to the medium and the message may come from both directions (Hoffman and Novak, 1996). Chaffey (Dave Chaffey et al., 2007) argues that such kind of communications allows mass customization and personalization and the messages send through Internet can be targeted more effectively.
42

Moreover, the web is changing the traditional marketing communications concepts as the consumers can go all the way from Awareness to Interest to Desire to Action (AIDA Framework), all within the same medium and within the same session (Economist, 2008). Peters (1998) suggests four main changes in communication model; comparing the new and old media:

i.

Communication style - tend to have little or no time lag between the giving, receiving, and responding aspects of communication between the parties.

ii.

Social presence - or perceived personalness, the feeling that communication exchanges are sociable, warm, personal, sensitive, and active.

iii.

Control of contact - early research into the willingness of consumers to utilize technology in shopping behavior concludes that the ability to control the pace and presentation of product information has the strongest influence on willingness to engage in computer-mediated marketing activity (Carson et al., 1996). Content the content can be customized either by users or by senders. Where users are able to control the content or presentation of the message, it is said to be interactive.

43

Andrew L. Shapiro (1999) argues that the emergence of new, digital technologies signals is a potentially radical shift of who is in control of information, experience, and resources. One of the key features of the new electronic communication media is the ability of consumers to control both contact and content (Peters, 1998). Sohn and Lackenby (2002) suggest that individuals participation in social communication processes is the crucial factor for increasing the perceived interactivity of the Internet (citied in Stafford and Ronald, 2005).

Moreover, according to Normann and Ramirez (1994) the consumers become co-producers, because the value is constantly created in interaction with many different players, including consumers, suppliers, employees, and managers. As a result, marketers are losing control over the communication messages their trying to deliver to their consumers. According to Gatarski and Lundkvist (1998) when communication, in the meaning of sharing information, meets interactivity, it creates not simple massages but forms two-way conversations. These conversations can be applied in production as

implementation of mutual ideas (consumers and producers) in order to create new enjoyable products or services.

44

2.1 Social Media

The real power of people can be noticed in the new revolutionized media channel social media. According to Mayfield (2008), social media is best understood as a group of new kinds of online media, which share most or all of the following characteristics:

1)

Participation

&

Engagement:

Social

media

encourages

contributions and feedback from everyone who is interested. It blurs the line between media and audience. 2) Openness: Most social media services are open to feedback and

participation. They encourage voting, comments, and the sharing of information. There are rarely any barriers to accessing and making use of content password-protected content is frowned on. 3) Conversation: Whereas traditional media is about broadcast

(content transmitted or distributed to an audience), social media is better seen as a two-way conversation. 4) Community: Social media allows communities to form quickly and

communicate effectively. Communities share common interests, such as hobbies, current issue, political and economic issues, entertainments, games, and many more. 5) Connectedness: Most kinds of social media thrive on their

connectedness, making use of links to other sites, resources, and people.

45

Drury (2008) suggests that when analyzing social media, marketers too often concentrates on the media factor, when social element is the key, because marketing within social media is about building a relationship and conversation with the audience, where the simple message delivery is changed by ongoing exchange of perceptions and ideas between company and the consumer.

Haven (2008) suggests that social media key elements are not entirely new as features of sharing, connecting, opining, broadcasting and creating has been long in our lives, but there are several characteristics of new technologies and behaviors that set them apart from the past:

i.

Reach Historically, audiences for the common person have been limited; a tribe, family, friends, neighbors, or the local community. Today's technologies provide scale and enable anyone to reach a global audience.

ii.

Accessibility The means of production for most media used to lie in the hands of enterprises with unlimited resources (financial or human). Today's technologies for media creation are available to anyone at little or no cost.

iii.

Usability The means of production typically required specialized skills and training, both technically and creatively. Today's technologies simplify those processes, or in some cases reinvent them. So anyone can create and operate the means of production.
46

iv.

Transparency People, especially Americans, historically kept personal information to themselves and had a general distrust of authority (enterprises, government, etc.). Today, people are willing to share anything about themselves (interests, location, family situations, health condition, and others) in a public venue, and today's technologies make that both possible and purposeful.

v.

Recency When people did have the means of production and distribution in the past (albeit limited), the time lag between

communications was typically long (days, weeks, or even months). It was a limitation of the technology or system in which it operated. Today's technologies enable instantaneous responses and dialog where only the participant determines the delay in response.

47

2.2 Web 2.0

Social media and Web 2.0 are two terms which are often used interchangeably in the marketing literature, even though they are not entirely the same. From the marketing perspective, the Web 2.0 should be perceived as the new tools for the marketing communication mix and facilitator and enabler of social media.

The Web 2.0 terms was introduced by Tim OReilly in 2004. It has originated from talks about social software and the communities surrounding these applications. According to Tim OReilly (2007) The companies that survived the dotcom boom had something in common, these companies realized that the Web is much more useful for delivering service than being used just as a platform for packaged products (i.e. software).

Constantinides and Fountain (2008) defined Web 2.0 as a collection of open-source, interactive and user-controlled online applications expanding the experiences, knowledge, and market power of the users as participants in business and social processes. Web 2.0 applications support the creation of informal users networks, facilitating the flow of ideas and knowledge by allowing the efficient generation, dissemination, sharing and editing / refining of informational content.

48

Hoegg (Hoegg et al, 2005) suggests that Web 2.0 is the philosophy of mutually maximizing collective intelligence and added value for each participant by formalized and dynamic information sharing and creation. Hoegg (Hoegg et al, 2005), and Constantinides and Fountain (2008) classified Web 2.0 into 5 broad types according their nature:

i.

Blogs: Short form for Web logs; the online journals, the most known and fastest-growing category of Web 2.0 applications. Blogs are often combined with Podcasts, that is, digital audio or video that can be streamed or downloaded to portable devices. Examples: Wordpress.com, Blogger.com, Xanga.com.

ii.

Social networks: Applications allowing users to build personal websites accessible to other users for exchange of personal content and communication. Examples: Myspace.com, Facebook.com, Tagged.com, Friendster.com, LinkedIn.com, Hi5.com.

iii.

Content Communities: Websites organizing and sharing particular types of content. For instance, applications applications Digg.com, of of and video photos publicly sharing: sharing: edited

Video.google.com, Flickr.com, social

Youtube.com, bookmarking:

encyclopedias (wikis): Wikipedia.org.

iv.

Forums / bulletin boards: Sites for exchanging ideas and information usually around special interests. For examples: Epinions.com, YahooAnswer.com.
49

v.

Content

aggregators:

Applications

allowing

users

to

fully

customize the web content they wish to access. These sites make use of a technique known as Real Simple Syndication or Rich Site Summary (RSS). Examples: uk.my.yahoo.com, google.com/ig.

Tim OReilly (2005) argues that Web 2.0 doesn't have a hard boundary, but rather, a gravitational core which could be visualized as a set of principles and practices that tie together a veritable solar system of sites that demonstrate some or all of those principles, at a varying distance from that core. Therefore, it is difficult to classify the Web 2.0 into the precise groupings, because the applications are interrelated and most of the time a few Web 2.0 features works on one platform. The mixture of Web 2.0 applications working under one site are known as Mash-ups.

According to Mayfield (2008), this combination of two or more pieces of contents (or software, or websites) is one of the phenomena in social media that make it at once so exciting, fast-moving, and sometimes bewildering. But even more important feature of Web 2.0 applications is the adaptability in the different platforms. Social applications are becoming more and more popular on mobile devices (Phones, iPods via podcasts). In fact, according to BBC News (2008) one of the reasons the Internet usage on the mobile devices is increasing is because of Web 2.0 applications.

50

2.3 Social Media Marketing

As the prevalence of social media continues to rise, organizations of all types and sizes are recognizing the ways in which social media can help them better understand, respond to, and attract the attention of their target audience. As a result, businesses are now jumping on the social media bandwagon at a rapid pace, embracing blogs, social networks, wikis, and other vehicles to achieve their marketing and public relations goals.

There are few types of benefits that can be achieved by corporations with the use of effective social media strategy:

i.

Get the Message Out Faster and to More People

Social media enables more rapid sharing of information. It may take hours, or even days, for a new announcement to reach the end consumer through traditional channels. When a press release is issued, a journalist or writer must first wade through all the sales and marketing lingo to find the key points. Then, the content must be re-purposed in article format, and sent to an editor or proofreader before it is published.

Social media vehicles, on the other hand, allow for instantaneous dissemination of not just news, but images, audio, video, and other multimedia
51

content as well. And because releases geared toward social media outlets contain only key highlights, pertinent facts, and hyperlinks to related statistics and quotes, the information they contain can be immediately picked up and posted by bloggers and other online journalists.

Social media also provides more widespread coverage, enabling breaking news to reach a much larger and broader reader base than standard media outlets alone. While magazine readership and the number of available print publications continue to decline, the number of consumers using the Internet to access and share information continues to rise sharply. For example, one recent study showed that almost one out of every four Internet users over 41 million people total in 2006 visits MySpace on a regular basis.

ii.

Improve Branding

Social media and blogs in particular, can be a highly useful tool for enhancing both awareness and image. Blogging can help spread the word about a company, its products, and its services to more people, dramatically increasing brand recognition and awareness.

Additionally, social media can enable executives to gather input and feedback directly from their target audience, and use that intelligence for more

52

effective reputation management. Insight into why people like or hate a brand is needed to help change and control audience perceptions and preferences.

iii.

Boost the Impact of Direct Marketing

Search Engine Optimization (SEO) is a key component of todays direct marketing and lead generation strategies, and social media has proven its ability to significantly complement SEO initiatives. Many social media techniques such as frequent use of common jargon and key phrases, title tags, ticker symbols, and links to blogs and other relevant Web content can dramatically improve search engine rankings.

Additionally, while SEO relies on just a handful of popular search engines such as Google and Yahoo to drive target prospects to a site, social media expands the potential audience by creating alternate channels. For example, when content is published to a site, and that content is then linked from del.icio.us or Reddit, it can generate a tremendous boost in Web traffic. Many companies also find it much easier to generate compelling content that is likely to be picked up by bloggers, than it is to keep up with the rules required to rank high in todays popular search engines.

53

2.4 Interactions through SMP

The interactivity gains a new meaning when it is applied through Web 2.0 platforms and social media channels as dialogue between consumer and company becomes much more active and interactive. As summarized in the media landscape analysis, the past decade was all about two-way

communications and interactions models. Most of the marketing academics (Kotler, 2003; Pettit and Brassington, 2005) recognized the importance of creating two-way marketing channels between consumer and company for brand building, CRM, sales (and etc).

Social media, itself, does not change this idea, but redefines interactivity and takes it to another level. Armano (2008) argues that social media goes beyond the interactive marketing which is facilitated by computer-human interaction, and introduces human-to-human interaction enabled by technology. The main difference is that the companies instead of pushing the content (i.e. automated e-mails) through online channels, empower people to engage and interact with other people and produce new content about the company (blogging, commenting, social networking, and etc.). Free production of content and voluntary distribution is the key elements of the social media. Meadows-Klue (2008) suggests that in social media marketing, engagement replaces interruption; diversity and self-expression replace conformism and unity; the

54

media of the masses replace mass media; granular insights and rich data replaces generalization and conversations in marketing replace control.

Another major change from the marketing perspective is the shift from persuasion to influence. Past decades marketing practitioners were using the communication mix in order to attack consumers with pervasive messages to make them buy goods and services offered, but in the age where 25 percent of search results on Google for the worlds 20 largest brands links to consumergenerated content (Nielsen Buzz Metrics, 2007), to do this is too late, not practical or impossible, as the messages are already floating out there. According to Mitchell (2008), this process is facilitated by the change of information flows from top down (B2C) to bottom up (C2B), which redefines marketing environment as marketers do not own the message. Armano (2008) suggests that people can be divided in different grouping according their strength as the massagers.

The User Generated Content (UGC) can become influential message of the consumer to the consumer (C2C) about the company and therefore should be carefully monitored. In fact, the content is the new message in social media channels. According to Eikelmann (Eikelmann et al, 2008), the best marketers can do in this environment is to try to engage with the consumers through social media in order influence these messages. Drury (2008) suggests that instead of sending simple messages, marketers should provide the content which would be
55

relevant for consumers and would generate conversations among them. Therefore, influence will become a standard measurement in Marketing 2.0 (Dowdell, 2008). As blogger and social media strategist Douma (2008) put it: The age of persuasion is over. Welcome to the age of influence.

Marketers are forced to look for alternative communication strategies to market in the social media environment because advertising clutter, growing advertising literacy, and changing consumer behavior drives down the return on investment (Biegel, 2008; Constantinides and Fountain, 2008). These strategies have to consider the increasing fragmentation in the markets which may shift the rules of targeting into behavioral marketing favor (Meadows-Klue, 2008). Armano (2008) suggests that micro interactions and permission marketing /

unconventional marketing (Godin, 1999) should be the right strategy to approach the consumer in the new media world.

Micro strategies are more valuable in fragmented media environment, as they generate more precise consumer insight and as a result are better targeted. According to Godin (2008), unconventional marketing principals are effective because it considers the needs and wants of the people and listens to them. Therefore it aims to build a more in-depth and lasting customer relationship based on loyalty and trust (Masterson, 2007).

56

Viral and Word of Mouth (WOM) marketing principals are the essentials in social media. This medium provides a platform for Web 2.0 applications and tools, which works as enablers in order to increase reach and speed of the messages. According to Lockhorn (2007), word of mouth campaigns can take off very quietly through niche communities and can be powerfully persuasive, or conversely result in an astonishing backlash. It should be closely monitored by marketers as various researches (RazorFish, 2008; Internet Consumption Report, 2008) shows that people make purchasing decisions according what they here form other people about the products or services.

57

2.5 Awareness of SMP

It was only approximately 20 some odd years ago that the average person was beginning to become associated with the Internet. Prior to that, the Internet was mostly reserved for academia and various government agencies. Before that, it was only reserved for the U.S. government (the official origins of the Internet began back in 1969 with the U.S. militarys funding of a research network dubbed Arpanet). Today, we not only have the Internet, but also social media tied in there as well.

The term social media implies; media (place where publications occur) and social implies that there is sharing occurring sharing of ideas, opinions, and images. Social media also implies the tools, places, and services that allow people to gather for social interaction. Social media allows individuals to gather and express themselves in a much more simple and immediate fashion. By giving people this capability, they not only have the ability to share ideas, opinions and other contents, but also (if they wish) gain notoriety, and expand their influence.

The ability to do so has altered the way ideas change hands and how fast those ideas spread. At the same time, news and any information that would usually take days or even weeks to go from one location to another can now occur in seconds. This ease of communication has never been so available to
58

people around the world as it is now and it is still continuing to evolve. Remember that throughout history, many countless numbers of governments have created and held onto their power by controlling information and the spreading of ideas. Because of social media, many of these types of governments can no longer function this way any longer. Why? Because the technology available to a person is so economical and simple to utilize that virtually anyone with some education or training on the subject can become a point of contact for the communication of information.

The Delivery of News, the Sharing of Ideas, and the Expression of Opinions

Figure 2.1: Key Social Platforms

59

The spreading of an idea, or of news occurring somewhere in the world can no longer be completely blocked by any organization. As long as one person is able to connect to the Internet and express their view about a situation or simply about an idea, then the information that individual will want to share, will get out into the world. Remember, last year during the Iranian elections when there were (and to some extent still are) people disagreeing with the official election outcome, the Iranian government attempted to control the

communication and the images of what was occurring in Iran from getting out. They were never able to control all the information and images that were being seen by the world in real-time. In another example, when an earthquake rocked the country of Haiti, not only were images from the torn country in the aftermath of the quake being seen around the world, but commentaries and opinions of what people were seeing were being read and heard (from Haiti). Sites such as Facebook, Twitter, YouTube, and FriendFeed allow people to share ideas on not just news, but also on products and services. Products and services that before social media, many people would not have even heard about them, let alone request or want the service.

Needless to say, social media has forever changed the way society works, whether its the sharing of an idea, the communication of news, or the availability of a product or service. Society today is on the verge of a new way of existing that its never experienced before. No longer will people from one side of the world be really able to say that they will never see a person or communicate with
60

someone from the other side of the world ever in their life. No longer will people not be able to share an idea, if they really want to share it (no matter how radical it may be or no matter how many people may disagree with it). No longer will the spreading of information or the expressing of an opinion be able to be completely silenced. As long as there is a person who wishes to express their opinion, share their music or art, or simply say hello to another human being in another country or culture, social media will allow them to do so. Here are few questions related to the awareness of social media:

What are some of your opinions as to how social media has changed society?

How do you believe social media will be in the future? What will social media look like in 5 or even 10 years from now? 15 or 20 years from now?

61

2.6 Consumer 2.0 Web 2.0 Citizens

As powerful as it is technology is just enabler and its the technology in the hands of almost always connected people that make it so powerful (Blume, 1996; citied in Li and Bernoff, 2008). A decade ago Raaij (1998) identified that social and technological developments will create new options and possibilities for consumers and will bring some real changes for marketing managers. For the past 18 years, the active discussions have taken place in marketing literature analyzing the relationship of postmodern marketing, semantic web, interactivity, tribes, and changing consumer behavior (Raaij, 1998; Flart et al, 1995; Cova 1997; Constantinedes, 2004; Simmons, 2008), but only today the discussed thoughts embrace their real meaning. The mass acceptance of the Web as social medium is the biggest recent change in internet behavior which allows the postmodern marketing concepts to flourish (Razorfish, 2008). These changes in postmodern marketing era are mostly driven by the new consumers.

Digital natives, Millennial, Generation Y, just a few names often met in marketing literature, describing the new generation of tech-savvy, success driven, self-confident, independent but community-minded people (Deloitte, 2005). According to Tapscott (2008), it is the first global generation ever which is smarter, quicker, and more tolerant of diversity than their predecessors. Millennial never experienced life without computers and are just a click away from the world any minute.
62

The reverse accumulation of knowledge is typical for them - the younger they are, the more they know (Deloitte, 2005). Tapscott (2008) identifies eight norms that define Net Geners: They value freedom and choice in everything they do. They love to customize and personalize. They scrutinize everything. They demand integrity and openness, including when deciding what to buy and where to work. They want entertainment and play in their work and education, as well as their social life. They love to collaborate. They expect everything to happen fast. They expect constant innovation.

Moreover, Deloitte (2005) suggests that Generation Y is impatient, needs the flexibility and space to explore, wants to produce something worthwhile and seeks to make a difference in order to be rewarded with a respect. This generation fits well the description of postmodern consumer which lacks the commitment to grand projects and seeks different experiences, and is willing to see oneself as a (marketable) object in the different situations he / she encounters in order to make each a supremely exciting and enjoyable experience (Flrat et al., 1995)

63

Even though, they are not the only ones affecting the marketing environment. So called digital immigrants (Palfrey and Gasser, 2008) or fast adapters of the technology arguably might have even bigger influence on the ongoing changes in marketing as they are aware about the changing situation and they have a power, knowledge, and resources to influence this phenomenon. As both of these consumer groups are very important for marketers they could be grouped under one term of - Web 2.0 Citizens.

Web 2.0 Citizens worries marketers as their consumption patterns and the perception of the value are evolving and the old marketing models are not working on them. Wipperman (Trendbureo, 2008) argues that the Maslows pyramid of needs is changed with the closed loop (a feedback loop) where in the process that is never completed self-actualization remains the individuals basic motivation and is increasingly coming to the means of self-optimization.

64

Figure 2.2: The Closed Loop of Needs, Source: Trendbureo (2008)

The changing needs affects buying behavior which makes it difficult for marketers to target the consumer, especially when the new consumer takes the initiative for transactions, at the place and time they want, what has considerable consequences for the distribution of goods and services (Raaij, 1998). Easily satisfied, psychological and safety needs moves the postmodern consumer onto the search for social and self-actualizing experiences. The consumption becomes a way for individuals to creatively appropriate and construct self-images that allow them to become more desirable or likeable in various social contexts (Dawes and Brown, 2000; Goulding, 2003).

Constantinides and Fountain (2008) argues that in social web era, consumer preferences and decisions are based on new inputs provided by parties beyond the control of online marketers; peer reviews, referrals, blogs, tagging, social networks, online forums, and other forms of user-generated content uncontrollable by the marketers. These content creating people are keen in building online communities, in order to satisfy their social, self-esteem and self-actualization needs. According to Kim (2000) (cited in Bowman and Willis, 2003) the hierarchy of needs differ between offline and online communities.

65

Table 2.1: Online Community Needs, Source: Bowman and Willis (2003)

According to Cova (2002), the main differences are that the brand communities are explicitly commercial whereas tribes are not, furthermore, brand communities are concerned about relationship between brand and consumer, whereas tribes relationship between consumers. Muniz and OGuinn (2001) (citied in Ouwersloot and Odekerken-Schroeder, 2008) describes a brand community as a specialized, non-geographically bound community that is based on a structured set of social relations among admirers of a brand. Mairinger (2008) suggests that: The brand community is not just formed around a brand; it creates the brand. The brand community is not just formed around a product; it is part of the product.
66

Therefore, the creation and development of brand communities is one of the most important tasks of the marketer as it can guarantee the company success in the long term. According to Mairinger (2008), brand communities can add real experiences and emotion to the brand, reach the long tail, address both individualism and collectivity needs and replace the celebrity endorsers with community brand advocates. Considering that 49 % of people made a purchase based on friends recommendations on social media property (Razorfish, 2008), social media can be viewed as an important channel and tool to interact, manage and enable these brand communities.

Communication Process Changing consumers requires different communication approach from marketers. According to Tapscott (2008), Web 2.0 citizens do not accept the oneway communication approach because they have been immersed in two-way communication from childhood or their growing frustration with traditional communication approaches has reached the maximum limit. This media literacy evolved into digital media literacy and let the audience to manage and select their own exposure to marketing messages (Meadows-Klue, 2008). Therefore, a power shift can be observed from the sender (advertiser) to the receiver (consumer) where communication obtains a service-oriented (experience creating) rather than a persuasive role (Raaij, 1998). Flrat (Flrat et al., 1995) argues that in emerging postmodernity the consumer may be finding the potential
67

to become a participant in the customization of his/her world by immersing her/himself as an object into the world of objects, instead of trying to maintain a position that is privileged to and detached from the objects. Therefore, marketing has to include the consumer not as a target for products but as producer of experience. Creating and sharing positive experiences becomes more important than just sending simple messages to the consumer. Constantinides and Fountain (2008) argues that changing communications has to consider the new factors influencing the decision making process of the consumer (online uncontrollable marketing factors).

Changing customers perception of value affects the communication process as it is difficult to create suitable value proposition and target the consumer. Lawer and Knox (2006) identified the new drivers of value which has to be considered when planning communication strategy. Moreover, as the lines between consumers and producers disappear, the value is gained trough completely different experiences where consumer becomes a producer prosumer. Creativity and co-creation engages consumer, especially when it happens in neo-tribes or brand communities where the consumer can share the experience with others. As a result, the service or product itself can be modified in order to enable the consumer to take a part in co-creation process and guarantee a positive word of mouth for the company. Lawer (2006) proposes eight styles of company-consumer value co-creation.

68

From the social media perspective, the people could be divided in 6 social technographic profiles according to their participation level (Li and Bernoff, 2008): i. "Creators" - Publish a blog / website; upload created videos/music; write articles or stories and post them. ii. "Critics" - Post ratings / reviews; comment on blogs and forums; contribute to articles or wikis. iii. iv. "Collectors" - Use RSS feeds, add tags to web pages or photos "Joiners" - Maintain a profile / an account on social media site (Social network, Content community). v. "Spectators" - Read blogs or customer reviews, watch video or listen to audio (podcasts). vi. Inactives - None of these activities.

69

It is important to understand how social technologies are being adopted by the companys costumers as according to consumers profile, the social strategy could be adopted (Li and Bernoff, 2008). Especially, marketers should be concerned about Creators as they are most likely to be the trend setters / brand evangelists (opinion leaders). Hoegg (Hoegg et al., 2006) summarized the participation model of a Web 2.0.

Figure 2.3: Participation Model of a Web 2.0 Service, Source: Hoegg (2006)

70

CHAPTER THREE

71

3.0 RESEARCH METHODOLOGY

3.1 Introduction

Research methodology can be defined as a highly intellectual human activity used in the investigation of nature and matter, and deals specifically with the manner in which data is collected, analyzed, and interpreted.

This chapter will outline the research methodology, applied techniques, and procedures undertaken. It will also explain how the research was planned and implemented. The thorough description of research design will also be presented in this study.

By conducted a good research design, the effectiveness and efficiency of the research project can be achieved. A deep understanding of the following component of research design is required:

i. ii. iii. iv.

Identify data and information Collection of data and information Analyze the data Disseminate the information

72

3.1.1 Description and Justification of the Methods

There are two general types of the research approaches; scientific and ethnographic. According to Maylor and Blackmon (2005), the scientific (or objective) approach is more concerned with understanding the general patterns of peoples, organisations and social systems behaviour as an opposite to ethnographic (subjective) approach which is analyzing practices more than theories in greater depth and more at individual level.

This research can be considered as a theory-led scientific study, since the main objective of this research is to verify a set of theories that describe what is changing in the marketing communications environment and analyze consumers behavior according to these hypotheses. Even though it is considered to be scientific research there are some appearances of ethnographic inductive logic. Maylor and Blackmon (2005) suggest that sometimes when there is scarcity of data it may be an acceptable to use two research approaches in one study. Sometimes it may not be possible to develop any hypothesis at all, if it is being investigated for the first time as there are no previous data is available (Bhojanna, 2007). Therefore in this study, because the research subject is relatively new, the literature review was dedicated not to generate hypothesis, but to build-up the theory itself and to prove that in changing media landscape, there are new marketing communication tools and channels requiring greater

73

consideration, and that chosen hypothesis are valid. Furthermore, the findings in the literature review were adopted in data analysis.

The quantitative research strategies are used to count and measure the data in order to answer the questions what, where, how, how many, and how much as an opposition to qualitative research questions why and how. There is a debate going on whether qualitative or quantitative research is better, but according to Maylor and Blackmon (2005), both qualitative and quantitative research have their advantages and disadvantages and are used for different purposes.

The success of the quantitative study is based on the validity of the data and statistical significance of the results that could be generalized. Therefore, appropriate data had to be collected and processed. According to Maylor and Blackmon (2005), a suitable way to verify the research hypotheses and capture opinions, behaviors, attitudes, and facts is by doing a survey. In a result, according to sample size and time frame, the self-administrated online questionnaire method was chosen for conducting the survey. In the short time frame, it is considered to be one of the best tools to gather large amounts of valid data.

74

3.2 Research Design

3.2.1 Data Collection Method (Primary and Secondary Data)

Malhotra and Birks (2003), states that an appropriate data collection method contributes to the successfulness of research project. There are two types of data; primary data which has been collected in the process of the study by the researcher; and secondary data which has been already collected and analyzed by others (Ghauri et al, 1991). Both sources of data should be used to achieve efficiency and effective research objective. The secondary data provides an ability to save time and money. Therefore it has to be analyzed first before the collection of the new material. The primary data has to be collected as well, as the secondary data may not always provide the needed answer to all research questions (Ghauri, 1991). In order to answer the research questions, the primary and secondary data were used in this study.

First of all, to discuss the reasoning behind the hypothesis, literature review was performed which analyzed secondary data. The secondary data was collected from various academics and practitioners sources. Because of the scarcity of data in the academic literature, some of the most valuable information was gained through the community of marketing bloggers and research reports by individual companies. The academic articles and research papers, books,

75

published case studies, academic and industrial magazines or solitary articles where used to generate a broader view on the subject.

In order to answer the main research question and to test the hypothesis proposed in the introduction, the primary data was collected through the web survey (self-administrated questionnaire were used). It enabled researcher to apply statistical analysis methods for the study.

3.2.2 The Questionnaire Design

According Easterby-Smith (1991), within the short time frame and limited resources, a self- administrated questionnaire is the most appropriate method to collect data for research. Maylor and Blackmon (2005) suggest that in order to gather appropriate data with a questionnaire, the design and planning are the vital parts. In order to produce a reliable questionnaire and minimize biases in the research, the designer has to consider three areas of main issues; the wording of the questions, the appropriate categorization of variables, and the general appearance of the questionnaire (Sekaran, 2003). The simple commonly used expressions and terms were used in order not to confuse respondents. The general appearance of the questionnaire was selected from pre-designed themes for thesis type surveys suggested by the web portal providing the surveying services (Surveymonkey.com).

76

In order to gather necessary data, different types of questions were chosen. The closed-ended question was mostly used in this research in order to gather defined answers. Even though, in some questions the combination of closed-ended and open-ended question were used in order to leave a possibility for respondents to identify additional concerns.

3.2.3

Target Population and Sampling Design (Sampling Frame, Sample

Size, Sampling Technique)

According to Maylor and Blackmon (2005), the choice of the sample and correct sampling methods are one of the key factors in gathering valid and measurable data for the research. Malholtra (2003) suggests the five steps for sampling design: i. ii. iii. iv. v. Define the target population Determine the sampling frame Select the sampling frame Determine the sample size Execute the sampling process

77

Population The target population was chosen considering the objectives of this research. As a result, only the people who have ever used Social Media Properties (SMP) were considered as possible respondents.

Sampling Frame The biggest social networking website, Facebook.com which represents almost all Web 2.0 features in one site was chosen as the sampling frame for this research. This sampling frame was used to define the sample size needed to collect appropriate and valid data for the research

Sampling Size Due to limited data about the total number of social media users in Malaysia and short time frame and the budget, only followers from LSS Academys Facebook were considered as the possible respondents. The researcher had determined the target to get 100 responses from the web survey questionnaires as the sample size.

Sampling Technique According to Maylor and Blackmon (2005), if there is an accurate sampling frame and the probability sampling methods are employed, there is a better chance to reduce the sampling error. Therefore, probability simple random sampling (SRS) method was applied as the sampling technique in this study.
78

3.2.4 Reliability and Validity

As the questionnaire is a highly structured data collection tools, limiting the powers of the researcher, the design of questionnaire should include three characteristics (Bhojanna, 2007):

i.

Validity: Validity is the most critical criterion and indicates the degree to which an instrument measures what it is supposed to measure. Validity can also be thought of as utility.

ii.

Reliability: Reliability means, measuring instrument should provide consistent results, even if it is measured repeatedly.

iii.

Practicality: Measuring instrument must be economical and easy to use by the researcher. That means researcher must be able to measure what he intends to measure.

79

3.2.5 Data Administrative and Analysis

The researcher attached the questionnaires link at LSS Academys fan page in Facebook. The researcher used different analysis to analyze the quantitative data generated by the dichotomous, multiple choice, and Likert-scale questions. In order to investigate the relationship between independent variables and dependent variable, the researcher used correlation analysis to test and achieve the objective. Frequencies were used to analyze the demographic profile and also other data. In addition, reliability measure has been used to test the reliability of the variables. Finally, Statistical Package Social Sciences (SPSS) was used to administrate and analyze all the data.

80

CHAPTER FOUR

81

4.0 FINDINGS AND ANALYSIS

4.1 Demographic Profiles

In order to achieve the Aim 1 and create a general consumer profile of SMP in Malaysia, the answers to the questionnaire were analyzed. The first question was designed in order to find out the dominating sex of Social Media Properties in Malaysia. As it seen in the Table and Figure 4.1, the gender distribution among users is very similar, but female users outweigh the males. 52% of the respondents represented female and another 48% represented male.

Gender Cumulative Percent 48.0 100.0

Frequency Valid Male Female Total 48 52 100

Percent 48.0 52.0 100.0

Valid Percent 48.0 52.0 100.0

Table 4.1: Frequency Table of Gender for Social Media Users

82

Figure 4.1: Percentage of Gender for Social Media Users

83

As shown in the Table and Figure 4.2, the respondents from 21 30 years age group where most keen in participating in the survey with the percentage of 35%, followed by 31 - 40 year olds with the percentage of 28%. It is possible to make an assumption that theses two groups are the main users of SMP from LSS Academys fan page in Facebook. Age Frequency Percent Valid Percent Valid Below 20 years 21 - 30 years 31 - 40 years 41 years and above Total 25 35 28 12 100 25.0 35.0 28.0 12.0 100.0 25.0 35.0 28.0 12.0 100.0 Cumulative Percent 25.0 60.0 88.0 100.0

Table 4.2: Frequency Table of Groups of Age for Social Media Users

Figure 4.2: Percentage of Age Group for Social Media Users

84

As shown in the Table and Figure 4.3, majority of respondents, which represented 41% are Indian. This is followed by 33% of Chinese, and 17% of Malay. Other races such as Sikh and Caucasian represented the percentage of 9%. Race Cumulative Percent 17.0 50.0 91.0 100.0

Frequency Valid Malay Chinese Indian Others Total 17 33 41 9 100

Percent 17.0 33.0 41.0 9.0 100.0

Valid Percent 17.0 33.0 41.0 9.0 100.0

Table 4.3: Frequency Table of Races for Social Media Users

Figure 4.3: Percentage of Races for Social Media Users

85

As shown in the Table and Figure 4.4, most of the respondents who represented 66% are Malaysian citizen, another 34% are non-citizen. LSS Academys Facebook has international followers and customers since LSS Academy provide training not only in Malaysia, but also in India, China, etc. LSS Academy also has partnership with international consultation firm. Nationality Cumulative Percent 66.0 100.0

Frequency Valid Malaysian Non-Malaysian Total 66 34 100

Percent Valid Percent 66.0 34.0 100.0 66.0 34.0 100.0

Table 4.4: Frequency Table of Nationality for Social Media Users

Figure 4.4: Percentage of Nationality for Social Media Users

86

As shown in the Table and Figure 4.5, majority of respondents who use SMP are from the income group of RM 2000 RM 2999 (35%), followed by the income group of RM 3000 RM 3999 (30%). The least are from the income group of less than RM 1000. We can interpret that the two majority groups have stable monthly income. Monthly Income (RM) Frequency Percent Valid Percent Valid Less than 1000 1000 - 1999 2000 - 2999 3000 - 3999 4000 and above Total 3 28 35 30 4 100 3.0 28.0 35.0 30.0 4.0 100.0 3.0 28.0 35.0 30.0 4.0 100.0 Cumulative Percent 3.0 31.0 66.0 96.0 100.0

Table 4.5: Frequency Table of Monthly Income for Social Media Users

Figure 4.5: Percentage of Monthly Income for Social Media Users 4.2 Awareness of SMP
87

Based on Table 4.6, 89% of the respondents are aware of SMP and another 11%, which contribute the least percentage, do not aware of SMP. We can say that, most of us today realize the existence and usage of SMP.

Frequency Valid Yes No Total 89 11 100

Percent 89.0 11.0 100.0

Valid Percent 89.0 11.0 100.0

Cumulative Percent 89.0 100.0

Table 4.6: Frequency Table of Do you aware of Social Media Properties (SMP)?

Based on Table 4.7, 100% or all respondents agree that they use SMP tools in their organization.

Frequency Valid Yes 100

Percent 100.0

Valid Percent 100.0

Cumulative Percent 100.0

Table 4.7: Frequency Table of Do you / your organization use Social Media Properties (SMP) tools?

88

Based on table Table 4.7, 56% of respondents (majority) have been using SMP for 2-3 years. It is more than half, thats mean most of them are aware of the usage of SMP for quite some time.

Frequency Percent Valid Percent Valid 1 - 2 years 2 - 3 years 3 years and above Total 26 56 18 100 26.0 56.0 18.0 100.0 26.0 56.0 18.0 100.0

Cumulative Percent 26.0 82.0 100.0

Table 4.8: Frequency Table of How long have you been using this tool?

Based on Table 4.9, 50% of the respondents are not familiar with the concept of UGC and another 50% are familiar with the concept. It is equal, and we can interpret that the term of UGC are rarely being applied by SMP users.

Frequency Valid Yes No Total 50 50 100

Percent 50.0 50.0 100.0

Valid Percent 50.0 50.0 100.0

Cumulative Percent 50.0 100.0

Table 4.9: Frequency Table of Are you familiar with the concept of UserGenerated Content (UGC)? 4.3 Interactions through SMP
89

Did you (or will you) use Social Media Properties (SMP) recently? Cumulative Percent 100.0

Frequency Valid Yes 100

Percent 100.0

Valid Percent 100.0

All respondents (100%) were / will be using SMP recently.

How long do you spend your time for Social Media Properties (SMP) per day? Frequency Valid Less than 1 hour 1 - 3 hours 4 - 6 hours 7 - 9 hours 10 hours and above Total 5 38 32 15 10 100 Percent 5.0 38.0 32.0 15.0 10.0 100.0 Valid Percent 5.0 38.0 32.0 15.0 10.0 100.0 Cumulative Percent 5.0 43.0 75.0 90.0 100.0

38% of the respondents spend 1-3 hours for SMP per day. 32% of the respondents spend 1-3 hours for SMP per day. The least percentage is 5%, which means only 5 respondents use less than 1 hour for SMP per day.

90

From where do you use Social Media Properties (SMP) the most? Frequency Percent Valid Percent Valid Home Workplace Educational Institutions On the go Mobile 46 30 5 19 46.0 30.0 5.0 19.0 46.0 30.0 5.0 19.0 100.0 Cumulative Percent 46.0 76.0 81.0 100.0

Total 100 100.0 46% of the respondents use SMP at home. 30% of the respondents use SMP at the workplace.

19% of the respondents use SMP through on the go mobile (i.e. iPhone, Blackberry, etc). Why do you use Social Media Properties (SMP) tools? Frequency Percent Valid Percent Cumulative Percent 23.0 39.0 49.0 57.0 75.0 83.0 90.0 100.0

Valid

Communication Networking External Knowledge (blogs, internal wikis) Hiring Marketing Community Involvement Customer Analysis Customer Service

23 16 10 8 18 8 7 10

23.0 16.0 10.0 8.0 18.0 8.0 7.0 10.0

23.0 16.0 10.0 8.0 18.0 8.0 7.0 10.0

Total 100 100.0 100.0 The highest percentage, 23% of the respondents use SMP tools for communication.

91

Are Social Media Properties (SMP) tools met your business goals? Frequency Valid Yes No 89 11 Percent 89.0 11.0 Valid Percent 89.0 11.0 Cumulative Percent 89.0 100.0

Total 100 100.0 100.0 89% of the respondents agree that SMP met their organizational goals.

Does Social Media Properties (SMP) provides any business advantage over traditional media? Frequency Valid Yes 100 Percent 100.0 Valid Percent 100.0 Cumulative Percent 100.0

100% or all of the respondents agree that SMP provides business advantage over traditional media.

How do you gauge the use of technology in your organization? Cumulative Percent 57.0 80.0 100.0

Frequency Valid Excellent Good Fair 57 23 20

Percent 57.0 23.0 20.0

Valid Percent 57.0 23.0 20.0

Total 100 100.0 100.0 57% of the respondents rate the use of technology in their organization as excellent, 23% rate as good, and none of them rate for poor.

4.4

Frequency Tables for Technographic Profiles of SMP users Creator, Joiner, Spectator, Collector, and Critic
92

Who are you the most? Frequency Percent Valid Percent Valid Joiners (Maintain a profile/an account on social media site: Social network, Content Community) Spectators (Read blogs or customer reviews, watch video or listen to audio) Creators (Publish a blog/website: upload your created videos/music: Write articles or stories and post them) Critics (Post rating/reviews: Comment on blogs and forums: contribute to articles or wikis) Collectors - Use RSS feeds, add tags to web pages or photos) Total and 10% are Collectors. 42 42.0 42.0 Cumulative Percent 42.0

24

24.0

24.0

66.0

17

17.0

17.0

83.0

10

10.0

10.0

93.0

7.0

7.0

100.0

100

100.0

100.0

42% of the respondents are Joiners, 24% are Spectators, 17% are Critics,

93

Most likely actions after the interaction with the company on SMP by Creators Frequency Percent 3 17.6 4 4 4 23.5 23.5 23.5 Valid Percent 17.6 23.5 23.5 23.5 Cumulative Percent 17.6 41.2 64.7 88.2

Valid

Make a purchase Trust the company more Interact more with the company Recommend the company to your friends Will interact more with other companies Total

2 17

11.8 100.0

11.8 100.0

100.0

The Social Media Properties (SMP) used by Creators Frequenc Valid Cumulative y Percent Percent Percent Valid Blogs ( Blogger, 5 29.4 29.4 29.4 Wordpress, Xanga, etc) Social Networks 2 11.8 11.8 41.2 ( Facebook, Myspace, Hi5, etc) Microblog (Twitter, Tumblr, etc) Content Communities (Youtube, Flickr, Digg, etc) Opinion Networks (Forums/Bulletin Boards) Total 3 4 17.6 23.5 17.6 23.5 58.8 82.4

17.6

17.6

100.0

17

100.0

100.0

Statistics

94

The obstacles

Most likely actions after the interaction with the company on SMP by Creators Frequency Percent 3 17.6 4 4 4 23.5 23.5 23.5 Valid Percent 17.6 23.5 23.5 23.5 Cumulative Percent 17.6 41.2 64.7 88.2

Valid

Make a purchase Trust the company more Interact more with the company Recommend the company to your friends Will interact more with other companies Total

2 17

11.8 100.0

11.8 100.0

100.0

The Social Media Properties (SMP) used by Creators Frequenc Valid Cumulative y Percent Percent Percent Valid Blogs ( Blogger, 5 29.4 29.4 29.4 Wordpress, Xanga, etc) Social Networks 2 11.8 11.8 41.2 ( Facebook, Myspace, Hi5, etc) Microblog (Twitter, Tumblr, etc) Content Communities (Youtube, Flickr, Digg, etc) Opinion Networks (Forums/Bulletin Boards) Total 3 4 17.6 23.5 17.6 23.5 58.8 82.4

17.6

17.6

100.0

17

100.0

100.0

Statistics N Valid 42
95

42

42

42

Most likely actions after the interaction with the company on SMP by Creators Frequency Percent 3 17.6 4 4 4 23.5 23.5 23.5 Valid Percent 17.6 23.5 23.5 23.5 Cumulative Percent 17.6 41.2 64.7 88.2

Valid

Make a purchase Trust the company more Interact more with the company Recommend the company to your friends Will interact more with other companies Total

2 17

11.8 100.0

11.8 100.0

100.0

The Social Media Properties (SMP) used by Creators Frequenc Valid Cumulative y Percent Percent Percent Valid Blogs ( Blogger, 5 29.4 29.4 29.4 Wordpress, Xanga, etc) Social Networks 2 11.8 11.8 41.2 ( Facebook, Myspace, Hi5, etc) Microblog (Twitter, Tumblr, etc) Content Communities (Youtube, Flickr, Digg, etc) Opinion Networks (Forums/Bulletin Boards) Total 3 4 17.6 23.5 17.6 23.5 58.8 82.4

17.6

17.6

100.0

17

100.0

100.0

Statistics Missing 0
96

The Social Media Properties (SMP) used by Joiners Frequency Percent Valid Percent Valid Blogs ( Blogger, Wordpress, Xanga, etc) Social Networks ( Facebook, Myspace, Hi5, etc) Microblog (Twitter, Tumblr, etc) Content Communities (Youtube, Flickr, Digg, etc) Opinion Networks (Forums/Bulletin Boards) Total 7 16.7 16.7 Cumulative Percent 16.7

19

45.2

45.2

61.9

2 11

4.8 26.2

4.8 26.2

66.7 92.9

3 42

7.1 100.0

7.1 100.0

100.0

97

The content preferred by Joiners Valid Percent 21.4 14.3 33.3 31.0 100.0 Cumulative Percent 21.4 35.7 69.0 100.0

Frequency Percent Valid User-generated Content (UGC) Company provided content A mixture of both No difference Total 9 6 14 13 42 21.4 14.3 33.3 31.0 100.0

The external reasons for engagements by Joiners Frequency Percent Valid Percent Valid Reward Fast changing content Popularity of the content Relevant content Tools and platforms Total 2 9 11 15 5 42 4.8 21.4 26.2 35.7 11.9 100.0 4.8 21.4 26.2 35.7 11.9 100.0 Cumulative Percent 4.8 26.2 52.4 88.1 100.0

98

The obstacles to interact on Social Media Properties (SMP) by Joiners Frequency Percent Valid Privacy Time Poor content Technology capabilities Not enough info No sharing Total 9 13 7 4 6 3 42 21.4 31.0 16.7 9.5 14.3 7.1 100.0 Valid Percent 21.4 31.0 16.7 9.5 14.3 7.1 100.0 Cumulative Percent 21.4 52.4 69.0 78.6 92.9 100.0

99

Statistics

The external reasons The content preferred for engagements by by Spectators Spectators N Valid Missing 24 0 The content preferred by Spectators Frequency Percent Valid User-generated Content (UGC) Company provided content A mixture of both No difference Total 5 3 6 10 24 20.8 12.5 25.0 41.7 100.0 Valid Percent 20.8 12.5 25.0 41.7 100.0 Cumulative Percent 20.8 33.3 58.3 100.0 24 0

The external reasons for engagements by Spectators Frequency Percent Valid Reward Fast changing content Popularity of the content Relevant content Tools and platforms Total 2 5 5 7 5 24
100

Valid Percent 8.3 20.8 20.8 29.2 20.8 100.0

Cumulative Percent 8.3 29.2 50.0 79.2 100.0

8.3 20.8 20.8 29.2 20.8 100.0

Statistics The external The Social Media reasons for Properties (SMP) engagements by used by Collectors Collectors N Valid Missing 7 0 7 0 The internal reasons for engagements by Collectors 7 0

The Social Media Properties (SMP) used by Collectors Frequency Percent Valid Blogs ( Blogger, Wordpress, Xanga, etc) Social Networks ( Facebook, Myspace, Hi5, etc) Content Communities (Youtube, Flickr, Digg, etc) Opinion Networks (Forums/Bulletin Boards) Content Aggregators (RSS) Total 1 14.3 Valid Percent 14.3 Cumulative Percent 14.3

14.3

14.3

28.6

28.6

28.6

57.1

14.3

14.3

71.4

2 7

28.6 100.0

28.6 100.0

100.0

101

The external reasons for engagements by Collectors Frequency Percent Valid Fast changing content Popularity of the content Relevant content Total 2 1 4 7 28.6 14.3 57.1 100.0 Valid Percent 28.6 14.3 57.1 100.0 Cumulative Percent 28.6 42.9 100.0

The internal reasons for engagements by Collectors Frequency Percent Valid Personal satisfication and actualization Brand myself Develop myself The feel of power and influence The sense of belonging to the community Total 2 1 2 1 1 7 28.6 14.3 28.6 14.3 14.3 100.0 Valid Percent 28.6 14.3 28.6 14.3 14.3 100.0 Cumulative Percent 28.6 42.9 71.4 85.7 100.0

102

Statistics The content preferred by Critics N Valid Missing 10 0 The external reasons for engagements by Critics 10 0 The internal reasons for engagements by Critics 10 0

The content preferred by Critics Frequency Percent Valid User-generated Content (UGC) Company provided content A mixture of both No difference Total 2 3 4 1 10 20.0 30.0 40.0 10.0 100.0 Valid Percent 20.0 30.0 40.0 10.0 100.0 Cumulative Percent 20.0 50.0 90.0 100.0

103

The external reasons for engagements by Critics Frequency Percent Valid Reward Fast changing content Popularity of the content Relevant content Tools and platforms Total 1 2 2 3 2 10 10.0 20.0 20.0 30.0 20.0 100.0 Valid Percent 10.0 20.0 20.0 30.0 20.0 100.0 Cumulative Percent 10.0 30.0 50.0 80.0 100.0

The internal reasons for engagements by Critics Frequency Percent Valid Personal satisfication and actualization Brand myself Develop myself The feel of power and influence The sense of belonging to the community Total 4 1 1 2 2 10 40.0 10.0 10.0 20.0 20.0 100.0 Valid Percent 40.0 10.0 10.0 20.0 20.0 100.0 Cumulative Percent 40.0 50.0 60.0 80.0 100.0

104

Reliability Test for Awareness of SMP: Reliability Statistics Cronbach's Alpha N of Items

.321 4 Based on the result, the researcher can interpret that the factor of awareness of SMP is not reliable because the value of Cronbachs Alpha is 0.321, which means the strength of association is low or poor.

Reliability Test for Interactions through SMP: Reliability Statistics Cronbach's Alpha N of Items

.746 7 Based on the result, the researcher can interpret that the factor of interactions through SMP is reliable because the value of Cronbachs Alpha is 0.746, which means the strength of association is quite strong.

Reliability Test for Creators: Reliability Statistics Cronbach's Alpha N of Items

.969 2 Based on the result, the researcher can interpret that the factor of interactions through SMP is reliable because the value of Cronbachs Alpha is 0.969, which means the strength of association is very strong.

105

Correlation Analysis of Awareness of SMP:

Correlations Do you aware of How long Social Media have you Properties been using (SMP)? this tool? Do you aware of Social Media Properties (SMP)? Pearson Correlation Sig. (2-tailed) N How long have you been using this tool? Pearson Correlation Sig. (2-tailed) N 100 .577** .000 100 100 1 .577** .000 100 1

**. Correlation is significant at the 0.01 level (2-tailed). r (sample) = result, p (<,=) number r (100) = 0.577, p < 0.01, two tailed

There is a significant relationship between the awareness of Social Media Properties and the evaluation of social media effects on marketing communications.

106

Correlation Analysis of Interactions through SMP:

107

Correlations How long do you From spend where do your time you use for Social Social Media Media Propertie Properties s (SMP) (SMP) the per day? most? How long do Pearson you spend Correlation your time for Sig. (2Social tailed) Media N Properties (SMP) per day? From where do you use Social Media Properties (SMP) the most? Why do you use Social Media Properties (SMP) tools? Are Social Media Properties (SMP) tools met your business goals? Pearson Correlation Sig. (2tailed) N 1 .468** .000 100 100 Are Social Media Propertie s (SMP) tools met your business goals? .377** .000 100

Why do you use Social Media Propertie s (SMP) tools? .948** .000 100

How do you gauge the use of technology in your organization ? .872** .000 100

.468** .000 100

.527** .000

.009 .926 100

.345** .000 100

100

100

Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N

.948** .000 100 .377** .000 100

.527** .000 100 .009 .926 100

.419** .000

.921** .000 100 .565** .000

100 .419** .000 100

100 1

100

100

How do you Pearson

.872**

108

.345**

.921**

.565**

109

Correlation Analysis of Technographic Profile:

Correlations Most likely actions after the interaction The Social with the Media company on Properties SMP by (SMP) used Creators by Creators Most likely actions after the interaction with the company on SMP by Creators The Social Media Properties (SMP) used by Creators Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N 17 .950** .000 17 17 1 .950** .000 17 1

**. Correlation is significant at the 0.01 level (2-tailed). r (sample) = result, p (<,=) number r (100) = 0.950, p < 0.01, two tailed

There is a significant relationship between technographic profiles of Social Media Properties users (Creator, Joiner, Spectator, Critic, Collector) and the evaluation of social media effects on marketing communications.

110

Finding 1: The Changing of Marketing Communication Environment and Consumers Profile in Malaysia.

In the literature review the social media environment was analyzed and the main changes were indentified. It was noticed that the interactivity is much more personal in social media and is based on human to human interaction. Moreover, it was indentified that social media is changing the communication processes as the power shifts from company to the consumer and the meaning of the message itself is changing (content becomes the message). The various Web 2.0 properties were grouped and defined. The research found that social media environment comprises the features of medium and tool and is suitable for marketing to postmodern consumer.

The research had identified the general consumer profile within Malaysia market. According to technographic typology, 5 groups of Web 2.0 Citizens were analyzed and the main differences between them were identified. It was noticed that, that social media in Malaysia penetrates into all aspects of daily life, but the consumption patterns slightly differs from the consumers in other countries (US) and it differs amongst the 5 technographic consumer groups as well. Moreover, it was identified that in general consumers prefers UGC rather than company provided content, but most of them see no difference between them or wants a mixture of both. The relevance of the content is the single most important factor among all the consumers in Malaysia. According to the research results, the
111

personal satisfaction or self-actualizing needs are driving the consumption and that the biggest influencers of Web 2.0 citizens are their friends, who are most likely to affect their behaviors and push to the interactions. It was found that most of the consumers are afraid of losing time and privacy when participating in conversations within social media environment, but these communications push towards closer relationship with the company and are likely to outgrow into the monetary relationships.

Finding 2: The influence of SMP on the Consumers and Comparison with Traditional Media

In order to evaluate the influence of Social media as a medium for marketing communication campaigns, 3 Hypothesis were tested. According to the results, the main findings can be summarized. The gathered data suggests that there is a relationship between SMP used and the positive outcomes after interaction. Therefore, it could be concluded that interactions through SMP could result in positive outcomes for the company. The interaction through Social networks, Content communities and Blogs are most likely to cause grater relationships with the company and build trust. Moreover, the result suggest that different SMP have to be used in order to achieve different marketing communication goals, with a common trend that Content communities, Blogs and Social Networks can be considered for Advertising and PR purpose. Surpassingly, according to gather data, irrespectively from the message
112

distributor consumers agree that the messages delivered through social media are likely to change their attitudes towards company or its products. As a result, it can be concluded that SMP could be a valuable channel in changing consumers attitudes towards the company. Moreover, it is important for them to approach the company by themselves or recommendations in order to spread positive word of mouth about the company. In any case, the assumption can be made that communications through SMP triggers the positive word of mouth. In terms of media channels, marketers have to consider that Web 2.0 citizens differ amongst themselves. In order to integrate social media in to the whole marketing communication campaign successfully they have to consider what other media channels are liked most by what type of group of consumers. Due to this, it can be stated that different types of consumers use different type of mediums. Finally, according to the results from the consumers perspective there is no difference who initiates the interaction. Therefore, it can be concluded that the company can start the conversation with the consumer on SMP without fear to annoy him / her.

113

CHAPTER FIVE

114

5.0 CONCLUSIONS AND RECOMMENDATIONS

The evolving media landscape and changing consumer behavior presents new challenges for marketing practitioners. The growth of social media properties forces marketers to consider new tools in approaching the postmodern consumers. As summarized in the findings, these tools vary depending from the consumers group, media channel, and SMP itself. It is clear that this media / marketing channel is here to stay, but as it is still developing and changing, therefore the constant monitoring of SMP tools is required by marketing professionals and academics. This research achieved its main goals and showed that the consumers welcome companys initiatives to communicate through social media and the Web 2.0 applications can be used successfully as the new tools in marketing communication mix. Even though, as this research just tested the theory that that social media is an effective marketing tool and channel, the further, possibly qualitative research is needed in order to understand the effectiveness of every tool on the consumers behavior.

LSS Academy on the other hand, discovers that the emerging of social media, social media marketing, and the rapid change of technology forces them to fully utilize the Web 2.0 applications. Hence, LSS Academy also promotes and markets its products through Facebook fan page, Twitter, Youtube, and other social media channels in order to reduce cost of advertisement and also to get engage with a long-term customer relationship.
115

The implication of this research should mostly concern the marketing professionals as the data gathered provides interesting insights about the social media environment in Malaysia. Nevertheless, it gives an opportunity for other academic researchers to adapt or verify the presented theories in different marketing backgrounds.

Web 2.0 and social networks drive down the cost of communication, which accelerates volatility because when people talk, ideas change and lead to action, and digital conversations happens faster and less expensively. Social networks are rapidly making the Web human, thereby attracting an ever-larger portion of all human communications online. In 2009, adoption reached critical mass, ramping strongly among consumers, so many enterprises are following. The Web 1.0 adoption rhythm is very instructive.

Pervasive Web 2.0 also means reexamination or disruption of most areas of life, culture, society, government, and business because social networks alter how many and what kind of relationships people have. The impact is similar to Fords production line, except it is more powerful; it scales relationships. Large organizations will remain in a profound state of turmoil because they were not built, with withstand the volatility these forces are unleashing. Many Fortune 500 companies will be confronted with their survival, and some will not make it. Entire industries will consolidate over the next several years (automotive, airlines, banking, hotels, food, consumer goods, etc). Web communications mean we con116

sume novelty far more quickly, which curtails product life cycles and leads to ultra-fast commoditization. Companies will require unprecedented innovation to even stay in place. New entrants around the world compete for customers and leverage their lower costs and better innovation processes.

Nowadays, we can see that the Knowledge Economy represents a profound shift in society and business. The good news is the way we make our transition to it will largely determine whether we survive or thrive. The macro trends are economic uncertainty and increased collaboration tools, skills, and expectations. Companys place in the value chain / web and the relationships with stakeholders will determine how immediately these trends affect us. In

general, customers are consulting each other on what, how, and when to buy everything, so companies need to be engaged with influencers. It is no longer about having ads and content available, its about interacting and creating relationships. Company needs to know how to show the right people how you care about them.

As for recommendations, Enterprise should identify, define, understand, and engage the Web 2.0 ecosystem. Web 2.0 communication and empowerment are rapidly changing stakeholders expectations, and most companies do not understand how. Enterprise needs concrete answers for:

What are stakeholders (customers, investors, regulators, employees, partners, alumni) doing in Web 2.0 venues?
117

Why they are into Web 2.0 and what are they trying to accomplish? Which venues do they use and how do they use each venue and why? How are they engaging with each other, competitors, and other players? Based on your culture, core competencies and business goals, how can you engage efficiently and effectively?

Furthermore, Enterprise should develop resident skills with Web 2.0 technologies, processes, and sensibilities. This is a strategic imperative because stakeholders will increasingly expect us to be available. Our presence will have a major impact on buying decisions. For many companies, 2010 will be the last year that they can move ahead of their competitors. Keep in mind, Web 2.0 is all about social behavior; its not a technology we can buy and put in place; our people and proxies have to learn how to act, and thats a process we need to pursue aggressively.

Blogging is about what we think, not about selling. Leave the latter for your website. No matter what your business is, you have to share your thoughts online. This also means engaging bloggers with impact on your stakeholders by commenting on their blogs.

Contribute to online forums frequented by stakeholders. This might be LinkedIn Answers, industry forums prominent blogs, MySpace or Yahoo forums, wherever stakeholders are asking questions and solving problems.

118

Deploy social business infrastructure internally to drive skill development and increase productivity; kick off pilots in which teams use wikis, blogs, microblogging, social bookmarking, and rich media.

Next, Enterprise should assign a top executive to manage our adoption of Web 2.0 because changing stakeholder expectations will change our business. This will proactively help to guide stakeholders expectations.

Develop a social business strategy that includes your overall approach considering risks, rewards and business strategy; goals, timelines and resource requirements; metrics and measurements; a risk-managed process to scale your initiatives. Your availability to interact with stakeholders will increasingly drive your brand value because they will expect you to be present, appropriate and sincere. Your company, employees and proxies need to learn how to do that. Its not easy because people have to unlearn some key things that used to work but no longer do.

The strategy will enable you to create a strategic dialog among management; in 2010 and 2011, executives are going to be doing remediation because social projects are happening all over the enterprise, in some cases counteracting each other. Having goals and meeting them collaboratively will significantly increase returns.

Create a strategic dialog within the organization and with partners and people outside. You need an adoption approach that considers the spec-

119

trum of risks and focuses your efforts on rewards that move your business strategy.

Your champion should have experience leading innovation-type initiatives that break rules and ruffle feathers. He / She should also be open to personally embracing social practices (i.e. blogging, tweeting, interacting online).

In addition, Enterprise should create and maintain a relationship-centric mindset for your Web 2.0 initiatives and use risk management best practices to maintain momentum. Keep pilots small, specific and rapid to shrink ROI discussions, measure results, and scale what is working. Finally, Enterprise should partner with IT on certain initiatives, and engage realistic enthusiasts to understand ITs capabilities and willingness to syndicate social content in from outside.

As for individual, here are some useful recommendations to keep track with Web 2.0:

Start blogging. Take your LinkedIn Profile up a level. People go to LinkedIn when they are looking for expertise. Remember, Web 2.0 is about interaction, not content. You can pay for content, but your attention is priceless. On LinkedIn, this means:

120

Participating in LinkedIn Answers: Answer others questions and ask questions; this attracts attention.

Putting your slides on your profile via Slideshare. Invoking your blog posts on your profile with the WordPress or BlogLink Apps.

Commit to tweeting. Twitter is a new mode of communication that you need to understand because it is transforming communication and creating new kinds of relationships.

Cut back on unproductive networking. Dont fall into networking as an activity trap. You could have written 6 blog posts and answered 4 LinkedIn questions. When you have a content strategy for your blog, it creates digital breadcrumbs that are always working for you. If you choose the LinkedIn questions you answer judiciously, people will discover them at any time. At face-to-face networking events, the value dissipates much more quickly. Cutting back on two events per month will give you more than enough time to ramp up online, where the leverage is far greater.

Relentlessly conduct yourself, so that you increase trust with people who count. Make introductions, answer questions, give help, ask for help, and follow through on what you promise. In Web 2.0 environments, other people are observing our interactions. We can choose to be creped out by that, or use it to our advantage. When you are authentic and help people, other people see. Huge leverage.

121

BIBLIOGRAPHY

122

BIBLIOGRAPHY

Text Book Sources Zikmund, W. G. (2000). Business Research Methods, 6th Edition. The Dryen Press Harcourt College Publisher. Uma Sekaran (2006). Research Methods for Business, 4th Edition. A Skill Building Approach. John Wiley & Sons. Malhotra, N. K. (2004), Marketing Research. An Applied Orientation, 4tth Edition. FT Prentice Hall. Brassington, F. and Pettit, S. (2005). Essentials of Marketing. FT Prentice Hall. Chisnall, P. M. (1997). Marketing Research. McGraw Hill. Blackmon, K. and Maylor, H. (2005). Research of Business and Management. London: Palgrave.

123

Journal Sources Biegel, B. (2008). The Megatrends: What to Expect in Direct and Interactive Marketing in 2010. Journal of Direct and Digital Marketing Practice, Vol.9, No.2, pp.122133. Constantinides, E. and Fountain S. J. (2008). Web 2.0: Conceptual Foundations and Marketing Issues. Journal of Direct and Digital Marketing Practice, Vol.9, No.3, pp. 231-244. Constantinides, E. (2004). Influencing the Online Consumers Behaviour: The Web Experience. Journal of Internet Research, Vol.14, No.2, pp. 111126. Cova, B. (1997). Community and Consumption: Towards a Definition of the Linking Values of Products and Services. European Journal of Marketing, Vol.31, No.3, pp. 297-316. Cova, B. and Cova, V. (2002). Tribal Marketing: The Tribalisation of Society and its Impact on the Conduct of Marketing. European Journal of Marketing, Vol.36, No. 5/6, pp. 299-310. Combe, I., Conway, S. and Crowther, S. (2003). Strategizing Networks of Power and Influence: The Internet and the Struggle over Contested Space. Managerial Auditing Journal, Vol.18, No.3, pp. 254-262. Cox, J. L., Martinez, E. R. and Quinlan, K. B. (2008). Blogs and the Corporation: Managing the Risk, Reaping the Benefits. Journal of Business Strategy, Vol.29, No.3, pp. 4-12. Dawes, J. and Brown, R. B. (2000). Postmodern Marketing: Research Issues for Retail Financial Services. Qualitative Market Research, Vol.3, No.2, pp. 90.
124

Dearstyne, B. W. (2005). Blogs: The New Information Revolution?. The Information Managements Journal, September / October Issue. Drury, G. (2008). Opinion Piece: Social Media: Should Marketers Engage and How can it be Done Effectively?. Journal of Direct and Digital Marketing Practice, Vol.9, pp. 274 277. Chaffey, D., Johnston, et. al (2007). Internet Marketing: Strategy, Implementation and Practice 3rd Edition. FT Prentice Hill. Eikelman, S., Hajj, J. and Peterson, M. (2008). Web 2.0: Profiting from the Threat, Journal of Direct and Digital Marketing Practice, Vol.9, No.3, pp. 293-295. Easterby-Smith, M., Thorpe, R. and Lowe, A. (1991). Management Research: An Introduction. London, Sage. Flart, A. F., Dholakia, N. and Venkatesh, A. (1995). European Marketing in a Postmodern World, Journal of Marketing, Vol.29, No.1, pp. 40-56. Ghauri. P., Gronhaug, K. and Kristianslund, I. (1995). Research Methods in Business Studies: A Practical Guide, Prentice Hall. Gatarski, R. and Lundkvist, A. (1998). Interactive Media Face Artificial Consumers and Marketing Theory must Re-think. Journal of Marketing Communications, Vol.4, pp. 45-59. Godin, S. (1999). Permission Marketing: Turning Strangers into Friends, and Friends into Customers. New York: Simon & Schuster.

125

Goulding, C. (2003). Issues in Representing the Postmodern Consumer. Qualitative Market Research: An International Journal, Vol.6 No.3, pp. 152-159. Louisa, H. A. and James, E. L. (1998). Interactivity Reexamined: A Baseline Analysis of Early Business Web sites. Journal of Broadcasting & Electronic Media, Vol.42, pp. 457-474. Hermeking, M. (2006). Culture and Internet Consumption: Contributions from Cross-Cultural Marketing and Advertising Research. Journal of ComputerMediated Communication, Vol.11, No.1, pp. 192 -216. Hoffman, D., Novak, T. and Chatterjee, D. (1995). Commercial Scenarios for the Web: Opportunities and Challenges. Journal of Computer-Mediated Communication, Vol.1, No.3. Hoffman, D. and Novak, T. (1996). Marketing in Hypermedia Computer-Mediated Environments: Conceptual Foundations. Journal of Marketing, Vol.60, pp. 50-68. Huang, Y. C., Shen, Y. C., et al (2007). Bloggers' Motivations and Behaviors: A Model. Journal of Advertising Research, December, pp. 472-484. Johnson, G. J., Kumar, A., et al (2006). Interactivity and its Facets revisited. Journal of Advertising, Vol.35, No.4, Winter 2006, pp. 35-52. Lawer, C. (2006). Customer Advocacy and Brand Development. Journal of Product & Brand Management, Vol.15/2, pp. 121-129. Kotler, P. (2003). Marketing Management, 11th Edition. Prentice-Hall International Editions. Englewood.

126

Lee, T. (2005). The Impact of Perceptions of Interactivity on Customer Trust and Transaction Intentions in Mobile Commerce. Journal of Electronic Commerce Research, Vol.6, No.3, pp. 165-180. Lee, S., Hwang, T. and Lee, H. (2006). Corporate Blogging Strategies of the Fortune 500 Companies. Management Decision, Vol.44, No.3, pp. 316-334. Li, C. and Bernoff, J. (2008). Groundswell: Winning in the World Transformed by Social Technologies. Harvard Business Press. Mairinger, M. (2008). Branding 2.0: Using Web 2.0 Principles to Build an Open Source Brand. Electronic Markets, Vol.18, No.2, pp. 117-129. Malhotra, N.and Birks, D. (2003). Marketing Research: Applied Approach. Prentice-Hall. London. Meadows-Klue, D. (2008). Falling in Love 2.0: Relationship Marketing for Facebook Generation. Journal of Direct and Digital Marketing Practice, Vol.9, No.3, pp. 245-250. Mitchell, A. (2008). Web 2.0 Commentary. Journal of Direct and Digital Marketing Practice, Vol.9, pp. 296-297. Newman, R. W. (1991). The Future of Mass Audience. Cambridge University Press. Newman, R. W., DiMaggio, P., Hargittai, E. and Robinson, P. J. (2003). Social Implication of the Internet. Normann, R. and Ramirez, R. (1994). Designing Interactive Strategy: From Value Chain to Wiley & Sons.Value Constellation. John Wiley & Sons.
127

O'Reilly, T. (2007). What Is Web 2.0: Design Patterns and Business Models for the Next Generation of Software, Communications & Strategies, No.65, pp. 17. Ouwersloot, U. and Odekerken-Schroeder, G (2008). Whos Who in Brand Communities and Why?. European Journal of Marketing, Vol.42, No. 5/6, pp. 571-585. Peters, L. (1998). The New Interactive Media: One-to-One, but Who to Whom?. Marketing Intelligence & Planning, Vol.16/1, pp. 22-30. Pomerantz, J. and Stutzman, F. (2008). Collaborative Reference Work in the Blogosphere. Reference Services Review, Vol.34, No.2, pp. 200-212. Palfrey, J. and Gasser, U. (2008). Born Digital: Understanding the First Generation of Digital Natives. Basic Books. Raaij, V. and Fred, W. (1998). Interactive Communication: Consumer Power and Initiative. Journal of Marketing Communications, Vol.41, pp. 1-8. Rayport, J. and Sviokla, J. (1994). Managing in the Marketspace. Harvard Business Review, Vol.72, No.6, pp. 141-50. Shapiro, A. L. (1999). The Control Revolution. New York: Public Affairs. Simmons, G. (2008). Marketing to Postmodern Consumers: Introducing the Internet Chameleon. European Journal of Marketing, Vol.42, No.3/4, pp. 299310.

128

Stroud, D. (2008). Social Networking: An Age Neutral Commodity: Social Networking becomes a Mature Web Application. Journal of Direct, Data and Digital Marketing Practice, Vol.9, pp. 278-292. Stafford, M. R. and Ronald, R. J. (2005). Advertising, Promotion, and New Media, M.E. Sharpe. Tredinnick, L. (2006). Web 2.0 and Business: A Pointer to the Intranets of the Future?. Business Information Review, Vol.23, pp. 228. Vara, V. (2006). Office Co-Opts Consumer Web Tools like Wikis and Social Networking. The Wall Street Journal, 12 September. Veal, A. J. (1997). Research Methods for Leisure and Tourism. FT Prentice Hill. London. Wyld, D. C. (2008). Management 2.0: A Primer on Blogging for Executives. Management Research News, Vol.31, No.6, pp. 448-483.

129

Electronic Sources Definition of terms. Available from: http://www.wikipedia.org/ [Accessed on August 17, 2010] Armano, D. (2008). Bridging the Social Divide, Logic + Emotion Blog or AdAge.com Available from: http://darmano.typepad.com/logic_emotion/2008/10/click-forlarge.html, http://adage.com/digitalnext/post?article_id=131858 [Accessed on August 17, 2010] Armano, D. (2008). Micro Interactions + Direct Engagement, Logic + Emotion Blog Available from: http://darmano.typepad.com/logic_emotion/2008/04/microinteracti.html [Accessed on August 17, 2010] Armano, D. (2008). The 4 Cs of Blogging, Logic + Emotion Blog Available from: http://darmano.typepad.com/logic_emotion/2007/10/the-4-cs-ofblog.html [Accessed on August 17, 2010] BBC News (2008). Mobile Internet Usage on the Rise, BBC News. Available from: http://news.bbc.co.uk/2/hi/technology/7748372.stm [Accessed on August 17, 2010]

130

Bowman, S. and Willis, C. (2006). We Media: How Audiences are Shaping the Future of News and Information, The Media Center at the American Press Institute. Available from: http://www.hypergene.net/wemedia/download/we_media.pdf [Accessed on August 17, 2010] Bhojanna, U. (2007). Research Methods for Managers, Scribd.com Available from: http://www.scribd.com/doc/7079583/Research-Methods-forManagement [Accessed on September 3, 2010] Daily Blog Tips (2008). 27 Definitions of Blog, Daily Blog Tips. Available from: http://www.dailyblogtips.com/27-definitions-for-blog/ [Accessed on September 3, 2010] Dowdell, J. (2008). Measuring the Effect of What You Heard, Marketing Shift Blog. Available from: http://www.marketingshift.com/2008/6/measuring-effect-whatheard.cfm [Accessed on September 3, 2010] Douma, C. (2008). P&G Digital Head Ted McConnell Smells the Coffee: Social Network Advertising Wont Work, Social Media Today (the first comment). Available from: http://socialmediatoday.com/SMC/57150 [Accessed on September 3, 2010] Deloitte (2005). Who Are the Millennias a.k.a. Generation Y?, Deloitte. Available from: http://www.deloitte.com/dtt/cda/doc/content/us_consulting_millennialfactsheet_08 0606.pdf [Accessed on September 3, 2010]

131

Godin, S. (2004). Beware the CEO Blog, Seth Godins Blog. Available from: http://sethgodin.typepad.com/seths_blog/2004/10/beware_the_ceo_.html [Accessed on September 14, 2010] Godin, S. (2008). Permission Marketing, Seth Godins Blog. Available from: http://sethgodin.typepad.com/seths_blog/2008/01/permissionmark.html [Accessed on September 14, 2010] Hoegg, R., Martignoni R., Meckel, M., Stanoevska-Slabeva, K. (2005). Overview of Business Models for Web 2.0 Communities, University of St. Gallen, Institute of Media and Communication Management. Available from: http://c-mobile.ptinovacao.pt/files/GeNeMe2006.pdf [Accessed on September 14, 2010] Honk, B. (2008). All Media Is Social, Birda Honk Blog Available from: http://thoughts.birdahonk.com/2008/10/media-has-always-beensocial.html [Accessed on September 14, 2010] Liu, Y. and Shrum, L. J. (2002). What is Interactivity and is it always such a Good Thing? Implications of Definition, Person, and Situation for the Influence of Interactivity on Advertising Effectiveness. Available from: http://www.yupingliu.com/Liu_Shrum_Interactivity.pdf [Accessed on September 14, 2010]

132

Masterson, J. (2007). Conventional Marketing vs. Permission Marketing, Internet Marketing Students Blog. Available from: http://internetmarketingstudents.com/Conventional-Marketing-vsPermission-Marketing [Accessed on September 14, 2010] Mayfield, A. (2008). What is Social Media?, iCrossing. Available from: http://www.icrossing.co.uk/fileadmin/uploads/eBooks/What_is_Social_Media_iCr ossing_ebook.pdf [Accessed on September 16, 2010] MIG (2007). Social Media Introduce New Models of Value Creation, Management Innovation Group. Available from: http://www.managementinnovationgroup.com/docs/MIG_Social_Media_Poster.p df [Accessed on September 16, 2010] MessageLabs (2007). Social Networking: Brave New World or Revolution from Hell?, MessageLabs. Available from: www.messagelabs.com/whitepaper/US_WP_SocialNetworking_Associate.pdf [Accessed on September 16, 2010] Mosberg, W. J. (2008). Birds of a Feather Twitter Together, Wall Street Journal. Available from: http://online.wsj.com/public/article/SB122826572677574415rXaM5BTzeRQMfvAuP3_4gjVJm_A_20091203.html? mod=rss_personal_technology [Accessed on September 16, 2010]

133

Nielsen Buzz Metrics (2007). CGM & Engagement, Nielsen Buzz Metrics. Available from: http://www.scribd.com/doc/687717/CGM-Engagement [Accessed on September 16, 2010] Strategy Analytics report (2007). The People's Revolution: Implications of Web 2.0 and Social Media Applications, Strategy Analytics. Available from: http://www.strategyanalytics.net/default.aspx? mod=ReportAbstractViewer&a0=3688 [Accessed on September 16, 2010] Steuer, J. (1992). Defining Virtual Reality: Dimensions Determining Telepresence, New Jersey: Lawrence Erlbaum Associates. Available from: http://www.presence-research.org/papers/steuer92defining.pdf [Accessed on September 16, 2010] Tapscot, D. (2008). The Kids are Alright. The Economist. Available from: http://www.economist.com/research/articlesbysubject/PrinterFriendly.cfm? story_id=12591038 [Accessed on September 16, 2010] Tapscot, D. (2008). Net Gen Transforms Marketing, Business Week. Available from: http://www.businessweek.com/technology/content/nov2008/tc20081114_882532. htm [Accessed on September 16, 2010]

134

Consumer Reports Awarness (2008). Trends and Best Practices in Adopting Web 2.0 in 2008, Awareness, Inc. Available from: http://www.awarenessnetworks.com/resources/resourceswhitepapers.asp [Accessed on September 21, 2010] Cone (2008). The 2008 Cone Business in Social Media Study, Cone. Available from: http://www.coneinc.com/content1182 [Accessed on September 21, 2010] Future Exploration Network (2008). The Future of Media Report. Available from: http://www.rossdawsonblog.com/Future_of_Media_Report2008.pdf [Accessed on September 21, 2010] IBM (2008). IBM and Employee-Centered Social Media, IBM. Available from: http://www.webguild.org/presentations/ibmsocialmedia.pdf [Accessed on September 21, 2010] McKinsey (2007). How Businesses are Using Web 2.0: A McKinsey Global Survey, The McKinsey Quarterly. Available from: http://www.mckinseyquarterly.com/How_businesses_are_using_Web_20_A_Mc Kinsey_Global_Survey_1913 [Accessed on September 21, 2010]

135

Further Reading Burnett, J. and Hutton, R. B. (2007). New Consumers Need New Brands, Journal of Product & Brand Management, Vol. 16/5, pp. 342-347. Bruce, H. (1999). Perceptions of the Internet: What People Think when They Search the Internet for Information, Internet Research: Electronic Networking Applications and Policy, Vol.9, No.3, pp. 187-199. Cova, B., Pace, D. J. and Park, D. J. (2007). Global Brand Communities Across Borders: The Warhammer case, International Marketing Review, Vol.24, No.3, pp. 313-29. Fang, E., Palmatier, R. W. and Evans, K. R. (2007). Influence of Customer Participation on Creating and Sharing of New Product Value, Academy of Marketing Science, Vol.36, pp. 322-336. Ferguson, R. (2008). Word of Mouth and Viral Marketing: Taking the Temperature of the Hottest Trends in Marketing, Journal of Consumer Marketing, Vol.25/3, pp. 179-182. Mason, R. B. (2008). Word of Mouth as a Promotional Tool for Turbulent Markets, Journal of Marketing Communications, Vol.14/3, pp. 207-224. Wright, D. K. and Hinson, M. D. (2008). How Blogs and Social Media are Changing Public Relations and the Way it is Practiced, Public Relations Journal, Vol.2, No.2.

136