impact of social media on businesses in usa

7/29/2019 Impact of Social Media On Businesses in USA

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Impact of Social Media on Businesses in the USA

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RESEARCH PROPOSAL

IMPACT OF SOCIAL MEDIA ON BUSINESSES IN THE USA


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Abstract

This research is focused on identifying and analyzing the impact of social media on the

businesses in the USA. The importance of social media tools and techniques in the modern world

has been highlighted and the researcher has discussed that how different social media sites can

be helpful for the modern world organizations to improve their productivity and enhance the

overall performance. The social media importance has been increased from the last few years

and in the modern world, social media is creating a significant impact on the performances of the

organization. The organizations which are operating in the era of increased competition can

improve their business performance by implementing effective social media tools and

techniques. The social media includes web based activities which enhances the connectivity

between people and enable them to connect with each other on very frequent basis without

spending significantly. There are many different types of mediums which can be used by the

people in order communicate with each other. These mediums include Twitter, YouTube,

Facebook, virtual game worlds, Emails, music sharing, etc. A framework is defined which is

called Honeycomb, it states that social media has seven smaller or bigger building blocks and

these building blocks are identity, conversations, sharing , presence, relationships, reputation and

groups. There are number of social media tools which can be used by the companies in order to

improve the overall performance of the business. YouTube is one of the famous tools for social

media marketing and it is also help in attracting significant number of customers. Advertisements

on YouTube suit a huge number of audiences and the organizations can easily communicate their

messages to the target audiences.


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The methods which are used by the researcher in order undertake this study include qualitative

and quantitative research methods. The researcher has used both these methods in order to

undertake this research and conclude it in an effective manner. Both primary and secondary data

collection methods are considered in order to collect the data for this particular research and

achieve the desired outcomes. The researcher has used questionnaire survey and interview

method in order in order to collect the primary data for research purpose. The secondary data has

been collected through the articles, journals and books which have been written on social media

and are helpful in understanding the importance of social media in the present business world.

The questionnaire survey will be conducted with the employees of three top multinational

organizations operating within the USA. The researcher has designed close ended questions in

order to get the responses from the employees working in different companies which will be

helpful in evaluating and analyzing the impact of social media on the overall business

performance of the company. The survey with the employees of the company will help to

determine that how social media campaigns can be used in order to enhance the business

performance. The researcher has also conducted an interview with the marketing managers of

two companies in order to discuss the social media strategies of those companies and to

determine that social media tools and techniques are affecting the business performances of the

companies.


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CHAPTER 1

INTRODUCTION

Background

This research is focused on identifying the impact of social media on the businesses in the USA.

The importance of social media has significantly increased over the period of time and in the

modern world, social media is creating a significant impact on the performances of the

organization (Argenti, 2006). Research shows that organizations operating in the era of increased

competition can improve their business performance by implementing effective social media

tools and techniques (Andreas and Haenlein, 2010). Social media includes web based activities

which enhances the connectivity between people and the channels (Bruhn, Schoenmueller and

Schafer, 2012). Social media forums are used to become an interactive path between the

organizations, communities and the individuals. Social media has wide coverage over the entire

world now and it is accessible with the help of different internet devices (Anderson and Rainie,

2010).

According to Baird and Parasnis (2011), social media is a web bases connection which enables

the exchange of user generated accounts in a cost effective manner. Social media has many

different forums like magazines, pictures, photographs, web blogs, social blogs, video ratings,

and video comments (Boyd and Ellison, 2008). There are many different types of mediums

where people can communicate with each other (Bennett, 2009). These mediums include

Twitter, YouTube, Facebook, virtual game worlds, Emails, music sharing, etc. A framework is


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defined which is called Honeycomb, it states that social media has seven smaller or bigger

building blocks and these building blocks are identity, conversations, sharing , presence,

relationships, reputation and groups (Benoit and Holbert, 2008). These building blocks are

helpful in understanding the needs of the audience of the social media and the type of relation

they share with the social media (Braunsberger and Gates, 2009). For example, the LinkedIn

users are focused on their image building and enhancing their personality traits. They are more

concerned about portraying a professional image because this website is connecting them with

the corporate world (Borremans, 2010).

Facebook is also a famous social media site and on this site, the users are more socially open and

they can talk freely and can discuss their ideas and thoughts. The users of facebook are mostly

informal with each other because they do not have to give a professional image, they dont need

to tell the other users about their professional personality, while their profile shows their nature

and attributes (Kietzmann, Hermkens and McCarthy, 2011). The use of social networking media

services in a project context represents the possibility of having main influences on the business

world. Social networks provide an opportunity to the users to connect with each other at a

relatively lower cost and it is also helpful for the small businesses and entrepreneurs which are

looking to increase their contact bases (Coombs and Holladay, 1996). These social networks

media often act as a client link management tool for organizations which are interested in selling

their products and services (Carol and Bienstock, 1996).


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Purpose of the Study

The main aim and purpose of this study is to research the latest issues and various aspects of

social media its ease of use, ease of implementation and ease of management. As the scope of

social media is increasing, therefore, the strategies and tactics to utilize this marketing platform

are also changing (Kietzmann, Hermkens and McCarthy, 2011). The modern business leaders

have started realizing this fact that by using social media sites effectively, they can improve the

overall performance of the organization (Komito and Bates, 2009). Social network sites can be

defined as web-based services that permit persons to (1) Build a public or semi-public side view

within a surrounded system, (2) Develop a catalog of other clients with whom they share a

connection, and (3) View their connections list and those prepared by others within the system

(Greenhow and Robelia, 2009). The nomenclature and nature of these connections may differ

from site to site. While using the expression social network site to explain this phenomenon,

the expression social networking sites also emerge in public dialogue, and the two expressions

are regularly used interchangeably (Komito and Bates, 2009).

Social network sites (SNS) are progressively attracting the attention of many researchers and

scholars all over the world who are interested in identifying the impact of social media sites on

the performance of the business (Kietzmann, Hermkens and McCarthy, 2011). Social network

sites (SNSs), for example, Facebook, MySpace, Bubo and Cyworld, have attracted many

corporation and they are actively using these sites in order to promote their products and services

on regular basis (Khan and Khan, 2012). The sites differ in the extent to which they integrate

new communication tools and information, such as blogging, mobile connectivity, and video/


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photosharing (Kietzmann, Hermkens and McCarthy, 2011). While SNSs have executed a large

range of scientific features, the major benefit of social media networks is that they contain

observable profiles that exhibit an uttered list of Friends, who could be the client of the

organization (Komito and Bates, 2009). After being a member of an SNS (Social network sites),

a person is asked to answer various forms containing the sequence of questions. The profile is

produced using the answers to these questions, which usually contain descriptors such as

location, age, an about me, and interests section (Macias, Hilyard and Freimuth, 2009). The

majority of sites also require the clients to upload a profile photo (Kietzmann, Hermkens and

McCarthy, 2011).

Importance of the Study

The importance of this study shows that social media tools and techniques are helpful in

increasing the brand awareness. The social media sites including Facebook, Twitter and

MySpace can play an important role in order to facilitate the business growth and development.

This research is important because it analyzes the impact of social media on the business

performance and enhancing the business performance is one of the primary objective of every

organization.

Statement of the Problem

Business leaders nowadays are looking for technology based innovative tools and techniques in

order to manage their business operations and improve the overall performance of the company.

However, due to scarcity of the resources, the organizations cannot afford to spend significantly


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in order to acquire and implement the technological tools and techniques. The social media sites

provide ease of communication within the organization at a lower cost and it also enables the

business leaders to manage and enhance the effectiveness of the business operations of the

company. It is a fact that businesses nowadays need to find innovative ways to promote their

products and services and it is difficult for the organizations to find the innovative ways. The

social media can provide this opportunity to the organization.

Research Questions (and/or Hypotheses)

Research Question 1

What is the role of social media networks in facilitating the communication within the

organization and enhancing the productivity of the firm?

H1: The social networking tool; such as, Facebook, Twitter and MySpace can be helpful in

facilitating the communication within the firm which results in improved productivity of the

organization.

Research question 2

Can social media sites be used in order to undertake the different business related tasks in an

effective manner?

H2: The social media tools can be used by the business organizations in order to enhance the

effectiveness of the business operations of the company.


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Research question 3

What is the impact of social media techniques on the overall performance of the business?

H3: The social media techniques can positively impact the overall performance of the business.

Research question 4

Can modern world organizations improve their business profitability with the help of social

media?

H4: The business profitability of the modern corporations can be improved with the help of

social media.

Research question 5

Why it is important for the organizations nowadays to incorporate the social media techniques

into their day to day business operations?

H5: The incorporation of the social media techniques into day to day business operations of the

company will impact the organizational productivity in a positive manner.

Method of Inquiry

This study will be non-experimental. The methods which will be used in order to undertake this

study include qualitative and quantitative research methods. The researcher will use both these

methods in order to undertake this research and conclude it in an effective manner. Both primary


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and secondary data collection methods will be considered in order to collect the data for this

particular research and achieve the desired outcomes.

Assumptions

The main assumption of this study is that businesses in the USA are using the social media

networking sites An important assumption of this research is that organizations operating in the

USA market are promoting the regular and effective use of social media sites.

Paper Organization

The chapter one of this research proposal provides an introduction to the research problem, the

scope of the study, the assumptions, limitations and delimitations that scope the project. The

chapter two includes a detailed discussion of the relevant literature addressing the problem.

Each section discusses the evidence available that provides insight into the problem and sub-

problems. The chapter three provides a detailed description of the research methodology

employed in the study. It includes a discussion of the method of inquiry, population and sample,

instrument used to gather the data, and the hypotheses and associated analysis techniques to be

employed in the data analysis. The chapter four provides the results of the data gathering, an

indication of the response rate and the reliability of the instrument used to gather the data. Also

included are the descriptive statistics obtained from the respondents and the results of the

analysis and hypotheses testing. The chapter five includes a discussion of the major findings of

the study, the conclusions reached as a result of the analysis and recommendations for future

research and use of the results.


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CHAPTER 2

REVIEW OF RELATED LITERATURE

According to Michael and Hensel (2010), a literature review aims to hold a body of critical

points of the study which is helpful in analyzing the points of views of different scholars and

researchers. Social customer relationship management (SCRM) is the latest approach that can be

adopted by the companies in order to conduct marketing of their products and services

(Kietzmann, Hermkens and McCarthy, 2011). Moreover, social media is a changer and the

customer is known as the influencer (Greenhow and Robelia, 2009). Social media and other

marketing channels trigger the use of the social media as the development approach towards the

business for marketing (Light and McGrath, 2010). SCRM has been a precedence approach for

company success lately and it is playing an important role in the business growth and

development of the modern world organizations (Vielhaber and Waltman, 2008). According to

Argenti (2006), the ultimate goals of the literature review is to bring the reader to a deeper

understating of the selected topic.

In the social media tools, engagement is when the stakeholders are participants rather than the

viewers (Braunsberger and Gates, 2009). It is best way to allow anyone to share their

perspectives about the company products and services. Customers can become an important part

of marketing department of a company (Benoit and Holbert, 2008). This engagement process is

essential for successful social media marketing and research shows that with the help of effective

social media techniques, the organizations can engage the customers that will create a positive

impact on the overall business results (Andreas and Haenlein, 2010). Marketers are seeing more


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advantages in social media marketing and this is one of the reasons that advertisers are investing

significantly in social media by 25 % (Greenhow and Robelia, 2009). Tactics to increase the

reach within sponsored stories and attaining new fans average 9 % monthly, therefore, increasing

the fans two times more on annual basis (Anderson and Rainie, 2010).

There are number of social media tools which can be used by the companies in order to improve

the overall performance of the business. YouTube is one of the famous tools for social media

marketing and it is also help in attracting significant number of customers (Bruhn,

Schoenmueller and Schafer, 2012). Advertisements on YouTube suit a huge number of

audiences and the organizations can easily communicate their messages to the target audiences.

The style and language used in the YouTube advertisements matches the needs of a large number

of audiences (Braunsberger and Gates, 2009). The advertisements are in synchronization with the

video that is mostly requested by the users (Boyd and Ellison, 2008). The sponsorship of video is

also probable on YouTube (Baird and Parasnis, 2011). Bennett (2009) found out that there are

many interactive tools that Twitters use and they are helpful in communicating with the target

consumers. However, many companies reported the inconsistency in the Twitter practice which

restricts the ability of the organizations to interact with the target consumers in an effective

manner (Greenhow and Robelia, 2009). Therefore, there is a need to develop the strategic

consistency in Twitter so it can help the organizations to achieve their strategic business

objectives (Benoit and Holbert, 2008).

Benoit and Holbert (2008) concluded in their literature review that social media tools such as

Facebook have become an important media channel for positioning the organizations and their


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brands within the market. The social media tools can be used by the organizations in order to

build their image in the market and improve their overall repute (Benoit and Holbert, 2008). In

the modern world, the organizations with better market repute can easily attract the significant

percentage of consumers and improve their clients base (Braunsberger and Gates, 2009).

Furthermore, the social media tools play an essential role in order to facilitate the communication

strategies and marketing campaigns of the firms. Social media is the most powerful tool today by

which the organizations can easily get connected with the consumers (Braunsberger and Gates,

2009). Whereas the traditional marketing practices impact the awareness of brand and social

media marketing tools helps to create a broad impact on the overall brand image (Carol and

Bienstock, 1996). This shows that organizations and improve their overall brand image by using

the social media tools and techniques in an effective manner (Greenhow and Robelia, 2009).

Research shows that the firms which have developed social media communications have a

powerful impact on the functional brand image (Coombs and Holladay, 1996). Today, small

businesses also make use of social media marketing as an effective promotional strategy which is

not only cost effective but it is also capable of generating the desired results. These sites help to

promote their deals and products for the local populace in an effective manner (Greenhow and

Robelia, 2009). Social media marketing entails the use of social networks such as eWom and

COBRAS to be able to advertise online (Kietzmann, Hermkens and McCarthy, 2011). Facebook

and Twitter also provides information about the dislikes and likes of consumers (Benoit and

Holbert, 2008). This helps the organizations to evaluate the consumers liking or disliking

towards their products and services which is the most important requirements in the present

world (Braunsberger and Gates, 2009). Research shows that the firms which are successful in


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getting the customers feedback on timely basis and incorporating it in the business operations of

the company can easily develop those products which are appreciated by the consumers

(Greenhow and Robelia, 2009). This is essential for the businesses to assess their specific target

audiences and implement effective strategies in order to satisfy and retain the target customers

(Komito and Bates, 2009).

There are many reasons for the companies to make use of blogging platforms, however, the

importance of blogging platforms vary for an organization to organization. For instance,

Linkedin develops an environment for the clients and enable the companies to connect online

(Keenan and Shiri, 2009). The members can make use of widgets to promote their social

networking activities such as blog entries and Twitter Stream (Kietzmann, Hermkens and

McCarthy, 2011). Khan and Khan (2012) stated that social networking sites have different

approaches for users to enhance their sociability. Facebook provides the real world networks for

consumers and encourages privacy (Benoit and Holbert, 2008). MySpace encourages both virtual

and real world networks in the website environment. Twitter and LinkedIn are the niche sites that

emphasize special aspects of technology and community (Braunsberger and Gates, 2009).

According to Macias and Freimuth, (2009), social networking sites such as Facebook should also

keep on following the ethical codes of conduct. The ethical codes of conduct need to be followed

by the social networking sites because it will be helpful in increasing the number of users

(Kietzmann, Hermkens and McCarthy, 2011).


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Summary

The summary of the literature review chapter shows that social media can be effectively used by

the organizations in the present world in order to enhance their business performance and

profitability. There is no second opinion on the fact that social media has revolutionized the

world and it is playing a major role in modifying and transforming the business trends in

different countries and modifying the way the organizations conduct their business activities.

The social media is one of the main sources of information in the present world and it is used by

the people who belong to different age groups all over the world. There are number of social

media sites including facebook and twitter which are very famous and there are millions of

people all over the world in different countries which are the regular users of these sites. The

social media campaigns used by the food companies in the US are also helpful in highlighting

the importance of using environment friendly methods of growing the food which is promoting

the green culture within the country. There are many businesses in the United States of America

which have defined their business segments by using the social media tools and techniques that

are helping out these companies to target their customers in an effective manner and generate the

desired results.


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CHAPTER 3

METHODOLOGY

Purpose of the Chapter

The methodology chapter is the most important chapter in the research process because it

discusses the tools and techniques which can be used in order to conduct the research and

achieve the specific objectives of the study. The researcher will use the qualitative and

quantitative research methodologies in order to undertake this particular research (Bryman and

Bell, 2011). These methodologies will also be helpful in answering the specific questions of the

study (Bell, 2005).

Chapter Organization

The research technique, population, instrumentation, research focus, strengths and weaknesses

are also discussed in this chapter.

Method of Inquiry

The research design for this particular study is questionnaire survey and interview. The

questionnaire survey will be conducted with the employees of three top multinational

organizations operating within the USA. The researcher will use design close ended questions in

order to get the responses from the employees working in different companies which will be

helpful in evaluating and analyzing the impact of social media on the overall business


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performance of the company. The survey with the employees of the company will help to

determine that how social media campaigns can be used in order to enhance the business

performance. The researcher will also conduct an interview with the marketing managers of two

companies.

Population and Sample

Population

The research population for the study will be the employees which are working in three

companies located in California, Hawaii, and New York. There will be two people which will be

selected for the interview purpose. The research population will be 500 and approximately 50%

of the respondents will be males and 50% will be females.

Research Hypothesis

The research questions are connected with the research hypothesis and the hypothesis of this

research are focused on answering the main questions of the study. The literature which has been

reviewed by the researcher is also based on the research questions and research hypothesis. For

instance research hypothesis suggests that social media is helpful in facilitating the

communication within the firm which results in improved productivity of the organization. The

discussions made in the literature review chapter also show that social media promotes effective

communications and it is helpful in enhancing the overall productivity of the organization. The


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research questions also seeks to determine that how performance of the organizations can be

enhanced with the help of effective social media tools and techniques.

Summary

This paper is about social media networks, and how are they influencing the social lives as well

as the businesses. It would be about the research that how much number of people is engaged in

social media websites. The research would also be conducted that which age group is using

social media more and how this age group can be talked if it comes to the adverting of the

campaigns. Moreover the research would be carried out with questionnaires and focus group

interviews. The analysis of the results would be gathered through the technical software tool that

is SPPS, for the perfection of the results. Hypothesis studies would study the effect of

independent variables over the dependent variables. Our independent variable would be social

media and dependent variable would be number of clicks, number of purchases, and number of

visitors generated. We would check their effect on each other after conducting the research. In

short we are doing research on social media and its impact in the business world, and how it has

become so important from the last decade. Moreover, we want to know that how businesses can

become more successful with the help of these forums. Furthermore, the social media tactic and

strategies that companies are utilizing these days would also be discussed. In addition, the extent

of each social media tool is also assessed. This will help to do the comparative analysis among

the social media networking sites. On the basis of research problem statements, number of

visitors on each social networking site through the number of clicks will be determined. This will

help to determine the social media site that is highly used by all companies.


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