FACTORS THAT IMPACT THE EFFECTIVENESS OF SOCIAL MEDIA AS A MARKETING TOOL IN SMALL AND MEDIUM-SIZED ENTERPRISES IN SELANGOR, MALAYSIA

Norull Adlila Binti Alias, Yip Zi-Hao, Muhammad Al-Fateh Bin Mat Ghazali, Fung Yeet Kang, Kumaran Kanapathipillai

Abstract


Small and medium-sized enterprises (SMEs) play a vital role in the Malaysian economy. The success of SMEs is critical for Malaysia's total economic progression, both nationally and globally. Conducting business online is one of the opportunities social media has provided entrepreneurs. SMEs often lack the means to conduct in-house marketing operations or hire a skilled marketing consultant. Social media is a massive dialogue that everyone can join. With social media, businesses have the added advantage of following statements and replying instantly. While there is much literature on social media marketing methods, there is not much information on how businesses might utilize social media to enhance profits. There is little academic research into the elements that drive social media use and its impact on SMEs in Malaysia. This research aims to develop an understanding of improving the use of social media as a marketing tool in SMEs and address its relationship to brand awareness, consumers' engagement, word-of-mouth, conversion rate, and effectiveness. For this quantitative study, data was collected using questionnaires conveyed to SMEs engaged in online marketing activities. The survey yielded 177 valid responses. The findings of this study indicate that word-of-mouth and engagement were insignificant. However, brand awareness and conversion rates were significant. This result is significant for SMEs in emerging markets as it allows them to establish their marketing presence and enhance brand equity.

 

Article visualizations:

Hit counter


Keywords


social media, marketing, small and medium-sized enterprise, brand awareness, consumers’ engagement, word-of-mouth, conversion rate

Full Text:

PDF

References


Ahamat, A., Shahkat Ali, M. S., & Hamid, N. (2017). Factors influencing the adoption of social media in small and medium enterprises (SMES). IJASOS- International E-Journal of Advances in Social Sciences, 573–582. https://doi.org/10.18769/ijasos.337151

Ahmad, S., Admad, N., & Bakar, A. (2017). Reflections of entrepreneurs of small and medium-sized enterprises concerning the adoption of social media and its impact on performance outcomes: evidence from UAE. Telematics and Informatics.

Aileen, E., Gaberamos, O., Bernarto, I. & Pasaribu, L. H. (2021). The effect of social media marketing, word-of-mouth, and effectiveness of advertising on brand awareness and purchase intention on Grab application users domicile of Tangerang. Journal of Management, 12(1) (2021) 426-441.

Ansari, S., Ansari, G., & Kazi, A. (2019). The impact of brad awareness and social media content marketing on consumer purchase decision. Journal of Public Value and Administration Insights, 2.5-10.10.31580.

Aristana, M. D., & Putra, I. D. (2020). Pengaruh social media marketing terhadap brand awareness Dan purchase intention (Studi Kasus: Smk Kesehatan Sanjiwani Gianyar). E-Jurnal Ekonomi dan Bisnis Universitas Udayana, 1035. https://doi.org/10.24843/eeb.2020.v09.i11.p01

Aydin, G.; Uray, N.; Silahtaroglu, G. (2021). How to engage consumers through effective social media use—guidelines for consumer goods companies from an emerging market. J. Theor. Appl. Electron. Commer. Res. 2021, 16, 768–790. https://doi.org/10.3390/jtaer16040044

Bilgin, Y. (2018). The effect of social media marketing activities on brand awareness, brand image and brand loyalty. BMIJ,6(1),128-148.

bigcommerce.com. (2019). Study more than half of the online shoppers have stopped shopping with retailers due to a negative shipping experience Retrieved From: https://www.bigcommerce.com/press/releases/bigcommerce

Burim, P., & Blerta, R. (2016). Social media as a marketing tool for SME: Opportunities and challenges. Academic Journal of Business, Administration, Law and Social Sciences, 2(3).

Büyükdağ, N. (2021). The effect of brand awareness, brand image, satisfaction, brand loyalty and WOM on purchase intention: An empirical research on social media. Business & Management Studies: An International Journal, 9(4), 1380–1398. https://doi.org/10.15295/bmij.v9i4.1902

Calder, B. J., Malthouse, E. C., & Maslowska, E. (2016). Brand marketing, big data and social innovation as future research directions for engagement. Journal of Marketing Management, 32(5-6), 579–585. https://doi.org/10.1080/0267257x.2016.1144326

Chang, Y. C., Ku, C. H. and Chen, C. H. (2019). Social media analytics: extracting and visualizing Hilton hotel ratings and reviews from Trip Advisor. International Journal of Information Management, Vol. 48, pp. 263-279.

Chatterjee, S., & Kar, A. (2020). Why do small and medium enterprises use social media marketing and what is the impact: Empirical insight from India. International Journal Information Management, 53,102103.

Chinna, K., & Yuen, C. W. (2015). Statistical Analysis Using SPSS. (2nd ed) Pearson Malaysia.

Chu, Shu-Chuan (2011). Determinants of consumer engagement in electronic word-of-mouth (eWOM) in social networking sites. International Journal of Advertising. 30. 10.2501/IJA-30-1-047-075.

Cui, A., & Wu, F. (2016). Understanding customer knowledge in innovation: antecedents and impact of customer involvement on new product performance. Journal of the Academy of Marketing Science, 44(4), 516-538.

de Oliveira S., F., Ladeira, W. J., Pinto, D. C., Herter, M. M., Sampaio, C. H., & Babin, B. J. (2020). Customer engagement in social media: a framework and meta-analysis. Journal of the Academy of Marketing Science, 48(6), 1211–1228. https://doi.org/10.1007/s11747-020-00731-5

Department of Statistics Malaysia Official Portal. (n.d.). www.dosm.gov.my. https://www.dosm.gov.my/v1/index.php?r=column/cone&menu_id=dU1SUTBsWDExM1A2YnJZZE95cVhGQT09

Dessart, L. (2017). Social media engagement: a model of antecedents and relational outcomes. Journal of Marketing Management, 33(5-6), 1–25. https://doi.org/10.1080/0267257x.2017.1302975

Effing, R., & Spil, T. (2016). The social strategy Cone: Towards framework for evaluating social media strategies. International Journal of Information Management, 36(1), pp.1-8.

ElAudi, H. (2018). The effect of social media marketing on brand awareness through Facebook; an individual-based perspective of mobile services sector in Egypt. Open Access Library Journal, 5. 10.4236/oalilb.1104977.

Elena, C. A. (2016). Social Media – A Strategy in Developing Customer Relationship Management. Procedia Economics and Finance, 39, 785–790. https://doi.org/10.1016/s2212-5671(16)30266-0

eMarketer. (2021). Digital ad spending (% of total media ad spending), Malaysia. Retrieved from: https://www.emarketer.com/forecasts.

Farook, Fathima & Abeysekera, Nalin (2016). Influence of Social Media Marketing on Customer Engagement. International Journal of Business and Management Invention, 5.

Fatima, N. (2016). Work of Mouth and Its Impact on Marketing. International Journal of Scientific and Research Publications, 4(1).

Goundar, S. (2012). Research Methodology and Research Method. In S. Goundar (Ed.). In S. Goundar, Cloud Computing. Research Gate.

Gravetter, F. & Wallnau, L. (2014). Essentials of Statistics for the Behavioural Sciences. (8th ed.), Belmont, CA: Wadsworth.

Hajli, N., Sims, J., Zadeh, A. H., & Richard, M.-O. (2017). A social commerce investigation of the role of trust in a social networking site on purchase intentions. Journal of Business Research, 71, 133–141. https://doi.org/10.1016/j.jbusres.2016.10.004

Ho, R. C., Withanage, M. S. and Khong, K. W. (2020). Sentiment drivers of hotel customers: A hybrid approach using unstructured data from online reviews. Asia-Pacific Journal of Business Administration, 12(3-4), 237-250.

Hollebeek, L. D. & Solem, B. A. A. (2017). The consumer engagement/return on social media engagement interface. Contemporary Issues in Social Media Marketing. Routledge. Retrieved from: https://www.researchgate.net/publication/345609695

Iankova, S., Davies, I., Archer-Brown, C., Marder, B., & Yau, A. (2019). A comparison of social media marketing between B2B, B2C and mixed business model. Industry Marketing Management, 81,169-179.

Intelligence, I. (n.d.). Influencer marketing stats: How creators have impacted businesses in 2021. Business Insider. https://www.businessinsider.com/influencer-marketing-important-for-brands-2021-5

Ismail, A. R. (2017). The influence of perceived social media marketing activities on brand loyalty: the mediation effect of brand and value conscious. Asia Pacific Journal of Marketing and Logistic, 29,129-144. https://doi.org/10.1108/APJML-10-2015-0154

Jamali, M. & Khan, R. (2018). The impact of consumer interaction on social media on brand awareness and purchase intention. Case study of Samsung. Journal of Marketing and Logistics, 1.

Jamil, K., Dunnan, L., Gul, R. F., Shehzad, M. U., Gillani, S. H. M., & Awan, F. H. (2022). Role of social media marketing activities in influencing customer intentions: a perspective of a new emerging era. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.808525

Jani, N. M., Hafiz, M., Maksom, Z., Shariff, Md., & Mustapha, R. (2018). Validating antecedents of customer engagement in social networking sites using fuzzy Delphi analysis. International Journal of Advanced Computer Science and Applications, 9(9). https://doi.org/10.14569/ijacsa.2018.090939

Jenkins, L. D. (2019). 17+ Social media marketing predictions for 2018 from the pros. social media marketing. Social Media Examiner. https://www.socialmediaexaminer.com/social-media-predictions-2018/

Kanapathipillai, K. (2021). The influence of social media technology with reference to Facebook on work performance: Organisational framework as mediator. European Journal of Social Sciences Studies, 6(5). DOI: http://dx.doi.org/10.46827/ejsss.v6i5.1116

Kanapathipillai, K., & Azam, S.M.F. (2019). Women entrepreneurs path to success: An investigation of the critical success factors in Malaysia. European Journal of Human Resource Management Studies. 3(1). DOI: http://dx.doi.org/10.46827/ejhrms.v0i0.615

Kanapathipillai, K., Narayanan, S., & Kumaran, S. (2021). Are women entrepreneurs’ business performance influenced by financial resources? Empowering women entrepreneurs in Malaysia through financial resources Post-Covid-19 pandemic. European Journal of Management and Marketing Studies, 7(1), 49-80. DOI: http://dx.doi.org/10.46827/ejmms.v7i1.1173

Khan, M. L. (2017). Social media engagement: What motivates user participation and consumption on YouTube? Computers in Human Behavior, 66, 236–247. https://doi.org/10.1016/j.chb.2016.09.024

Khaoula & Mehmet, E. S., & Mehmet, S. (2021). Examining the effects of social media influencers’ characteristics on brand equity and purchase intention. International Journal of Education & Social Sciences (IJESS), 2(12), 339-356.

Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational And Psychological Measurement, 30(3), 607-610.

Krishnadas, R. & Renganathan, R. (2019). Determinants of E-service quality features on customer satisfaction: A study among e-shoppers. Restaurant Business, 118(10), 76-87. https://doi.org/10.26643/rb.v118i10.9035.

Li, F., Larimo, J. & Leonidou, L. C. (2021). Social media marketing strategy: definition, conceptualization, taxonomy, validation, and future agenda. J. of the Acad. Mark. Sci. 49, 51–70. Retrieved from: https://doi.org/10.1007/s11747-020-00733-3

Lim, W. M., & Rasul, T. (2022). Customer engagement and social media: Revisiting the past to inform the future. Journal of Business Research, 148, 325–342. https://doi.org/10.1016/j.jbusres.2022.04.068

Lovering, C. (2019). Negative effects of social media on business. Chron.com. https://smallbusiness.chron.com/negative-effects-social-media-business-25682.html

Luca, M., & Zervas, G. (2016). Fake it till you make it: reputation, competition, and yelp review fraud. Management Science, 62(12), 3412–3427. https://doi.org/10.1287/mnsc.2015.2304

Marketing Magazine. (2016). https://marketingmagazine.com.my/infographic-understanding-asia-s-digital-consumer/

Marketing Maven, (2013). Social media & Marketing. Retrieved from: https://www.facebook.com/MarketplaceMaven/

Masley, M. (2019). How social media increases brand awareness. From https://www.business2community.com/social-media/how-social-media-increases-brand-awareness-02165638#:~:text=Whether%20you%20are%20using%20influencers,be%20found%20by%20new%20leads.

O'Flynn, A. (2017). Using social media to increase sales and brand awareness. From https://www.josic.com/using-social-media-to-increase-sales-and-brand-awareness

Oliveira, M., & Fernandes, T. (2020). Luxury brands and social media: drivers and outcomes of consumer engagement on Instagram. Journal of Strategic Marketing, 1–19. https://doi.org/10.1080/0965254x.2020.1777459

Palalic, R., Ramadani, V., Mariam Gilani, S., Gërguri-Rashiti, S. & Dana, L. (2021). Social media and consumer buying behavior decision: what entrepreneurs should know?. Management Decision, Vol. 59 No. 6, pp. 1249-1270

Pradiptarini, C. (2011). Social media marketing: measuring its effectiveness and identifying the target market. Journal of Undergraduate Research. XIV Retrieved from https://www.uwlax.edu/urc/jur-online/pdf/2011/pradiptarini.mkt.pdf

Roscoe, J. T. (1975). Fundamental research statistics for the behavioral sciences. (Second ed.). New York: Holt Rinehart and Winston

Sadiku-Dushi, N., Dana, L.-P., & Ramadani, V. (2019). Entrepreneurial marketing dimensions and SMEs performance. Journal of Business Research, 100, 86–99. https://doi.org/10.1016/j.jbusres.2019.03.025

Saldanha, T. J., & Krishnan, M. S. (2012). Organizational adoption of web 2.0 technologies: An empirical analysis. Journal of Organizational Computing and Electronic Commerce, 22(4), 301-333.

Schjoedt, L. and Shaver, K. G. (2019). Entrepreneurs’ motivation: a conceptual process theory. Journal of Small Business and Entrepreneurship, 32(4), 333-353.

Sekaran, U. (2003). Research Methods for Business (4th Ed.). Hoboken, NJ: John Wiley & Sons.

Shanahan, T., Tran, T. P., & Taylor, E. C. (2019). Getting to know you: Social media personalization as a means of enhancing brand loyalty and perceived quality. Journal of Retailing and Consumer Services, 47, 57–65. https://doi.org/10.1016/j.jretconser.2018.10.007

Shyam, R. (2018). Impact of Social media marketing in small and medium business. AMBER – ABBS Management Business and Entrepreneurship Review, 9(1), 50. https://doi.org/10.23874/amber/2018/v9/i1/176060

Simona, F. A. (2018). Does brand-consumer social sharing matter? A relational framework of customer engagement to brand-hosted social media. Journal of Business Research, 85, 175–184.

Sivapatham, C. S., Shahrul Azzim Bin Abd Aziz., Chin, A. T. M., Muhammad Aziph Bin Mustapha Kamil., Achuthan, S., & Kanapathipillai, K. (2022). The impact of social media on Gen-Y employees’ work performance in a telco, Malaysia. European Journal of Management & Marketing Studies, 7(4), 1-28. http://doi.10.46827/ejmms.v7i4.1293

SME Annual Report-Surveys on SMEs in 2016 and 2017. SME Corporation Malaysia. http://www.smecorp.gov.my/images/SMEAR/5_Chapter2.pdf.

SME Corporation Malaysia. (2012-2020.). From SME Master Plan: http://www.smecorp.gov.my/index.php/en/resources/2015-12-21-11-07-06/sme-masterplan/book/11-sme-masterplan-english/3-sme-masterplan

SME Corporation Malaysia. Surveys on SMEs in 2016 and 2017, SME Annual Report 2016/2017. http://www.smecorp.gov.my/images/SMEAR/5_Chapter2.pdf.

SME Statistics. (2020). http://www.smecorp.gov.my/index.php/en/policies/2020-02-11-08-01-24/sme-statistics

Subramanian, Kalpathy (2018). Social Media and The Word-of-Mouth Publicity. 3, 95-100.

Suryani, T., Fauzi, A. A., & Nurhadi, M. (2020). SOME-Q: A Model Development and Testing for Assessing the Consumers’ Perception of Social Media Quality of Small Medium-Sized Enterprises (SMEs). Journal of Relationship Marketing, 20(1), 62–90. https://doi.org/10.1080/15332667.2020.1717277

Van Dijck, J., & Poell, T. (2013). Understanding social media logic. Media and Communication, 1(1), 2–14. https://doi.org/10.17645/mac.v1i1.70

Vaynerchuk, G. (2011). The thank you marketing. New York. Harper Collins.

Yang, R. & Che, T. (2020). Do social ties matter for purchase frequency? The role of buyers’ attitude towards social media marketing. Computers in Human Behavior, 110. https://doi.org/10.1016/j.chb.2020.106376.

Yogesh, K. D., Elvira, I., D., Laurie, H., Jamie, C., Raffaele, F., Jacobson, J., Varsha J., Heikki, K, Hajer, K., Anjala, S. K., Kumar, V., Mohammad, M. R., Raman, R., Philipp, A. R., Rowley, J. Jari S., Tran, A. G. & Wang, Y. (2021). Setting the future of digital and social media marketing research: Perspectives and research propositions. International Journal of Information Management, 59. https://doi.org/10.1016/j.ijinfomgt.2020.102168.

Zhan, L., Sun, Y., Wang, N., & Zhan, X. (2016). Understanding the influence of social media on people’s life satisfaction through two competing explanatory mechanisms. Aslib Journal of Information Management, 68(3), 347–361. https://doi.org/10.1108/ajim-12-2015-0195

Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2013). Business Research Methods. Cengage Learning.




DOI: http://dx.doi.org/10.46827/ejmms.v7i4.1355

Refbacks

  • There are currently no refbacks.


Copyright (c) 2022 Norull Adlila Binti Alias, Yip Zi-Hao, Muhammad Al-Fateh Bin Mat Ghazali, Fung Yeet Kang, Kumaran Kanapathipillai

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

The research works published in this journal are free to be accessed. They can be shared (copied and redistributed in any medium or format) and\or adapted (remixed, transformed, and built upon the material for any purpose, commercially and\or not commercially) under the following terms: attribution (appropriate credit must be given indicating original authors, research work name and publication name mentioning if changes were made) and without adding additional restrictions (without restricting others from doing anything the actual license permits). Authors retain the full copyright of their published research works and cannot revoke these freedoms as long as the license terms are followed.

Copyright © 2017-2023. European Journal of Management and Marketing Studies (ISSN 2501 - 9988) is a registered trademark of Open Access Publishing GroupAll rights reserved.

This journal is a serial publication uniquely identified by an International Standard Serial Number (ISSN) serial number certificate issued by Romanian National Library. All the research works are uniquely identified by a CrossRef DOI digital object identifier supplied by indexing and repository platforms. All the research works published on this journal are meeting the Open Access Publishing requirements and standards formulated by Budapest Open Access Initiative (2002), the Bethesda Statement on Open Access Publishing (2003) and  Berlin Declaration on Open Access to Knowledge in the Sciences and Humanities (2003) and can be freely accessed, shared, modified, distributed and used in educational, commercial and non-commercial purposes under a Creative Commons Attribution 4.0 International License. Copyrights of the published research works are retained by authors.