Recent Trends in Business and Tourism

FIND A SOLUTION AT Academic Writers Bay

ABSTRACTIJRTBT IMPACT OF SOCIAL MEDIA IN SMALL BUSINESSINDUSTRY: A STUDY ON FACEBOOK1Calcutta University, West Bengal, India2Seacom Skills University, West Bengal, India*Corresponding Author’s E-mail: [email protected]International Journal on Recent Trends in Business and Tourism | Vol. 2 (3) 2018 JULY | 33Today in the rapidly moving world scenario, we can see ‘Change’ in every moment. With the upgradations ofnew technologies, use of Android phone, I-Phone, I-Pad, etc., people’s lifestyles have been changed. Digitalmarketing is one of the best ways where marketers can improve their businesses through Social Media. Thispaper is an attempt to study the impact of Social media in the Small-scale industry. This study also examinedhow Small Business owners are motivated to use social media applications.In the present study, the researchers have done the research in a single area in the field of social media, i.e.,facebook.com. An attempt has been made to analyze customer perceptions, their preference factors thatincrease the adoption rate of FB users, changing their buying pattern from traditional to online through socialmedia, facebook.com and lastly finding the most important factors which influences more, that helps theentrepreneur to set their Decision Support System as well as to improve the obtainable Business (Hyde et al.,2017).For the analysis, Factor Analysis is applied to identify the factors that influenced Facebook users for buyingthe product through Facebook, also the same analysis is used to find out the maximum and minimum varianceof the factors which helps the researchers to reach their destination and examined how Small Business ownersare motivated to use social media applications to improve their business. For this study, researchers havecollected 100 samples and given a helpful conclusion from the consumer view regarding demographic factorsfrom the city of Kolkata, West Bengal, India.Keywords: Demographic Profile, Social Media Applications, Customer Preferences, PsychologicalFactors, Small Business.INTRODUCTIONThe main aim of this paper is to determine the impact ofFacebook on the growth of small businesses and howFacebook can facilitate small businesses to spread outtheir businesses by using Facebook applications orFacebook business page. On the other hand, withgrowing usage of internet as well as mobileapplications, social media penetration has become anofficial part of our professional and personal life.Now we are going to discuss about social media andsocial networking service company, Facebook, becausewe have done our research in facebook.com. Facebookprofiles are more detailed than the other socialnetworks. Facebook provides great marketing andbusiness opportunities. Facebook pages help in greatways to build relationship with the targeted clients andcustomers in a more casual way and can prioritize themin the top of the customer’s mind.Facebook business pages are now more equipped toprovide benefit to small businesses. It helps in sharing aswell as targeting our businesses to billions of customersin a less expensive way than other advertisement insocial media. Apparently, the increased exposure is verymuch necessary for the increased growth of business.Besides these, Facebook provides the platform forgathering business leads so that they can becommunicated outside Facebook. Rather than these, italso helps in specific targeting and provides analysis ofbusiness by Facebook insights and increases web traffic.Social media networks like Facebook are gateways forcompanies to profit and grow in the industry.Companies are increasingly becoming keen to usesocial media for business tenacities as part of theircommunication, marketing and recruitment strategy(Kietzmann et al., 2011). Small business entrepreneursuse social media applications to spread their businessesby using large range of weak ties. The significance ofweak ties in the network of small business owners areidentified by Granovetter (1973) and Burt (1992). Thepurpose of weak ties is to collect information regardingbusiness by small business owners. It helps toMoumita Dey Sarkar , Indrajit Ghosal 1 2*IJRTBTSOCIAL MEDIA IN SMALL BUSINESS INDUSTRY34 | Vol. 2 (3) JULY 2018 | International Journal on Recent Trends in Business and TourismRESEARCH METHODOLOGYData collection methodology and sample planResearch type: Pragmatic in naturePopulation: Customers who have the FacebookAccount and buy the product through Facebook mediaand all the users’ demographic characteristics.Research design: The study has been partlydescriptive and partly analytical. The study is based onboth primary and secondary data.Sampling method: Multistage Sampling andPurposive Sampling technique were used to collect thedata for this study. The questionnaire was distributedamong only the Facebook users for online-marketing. Atotal of 100 questionnaires were distributed among thecustomers/users of different areas of Kolkata City(West Bengal, India).Tools for data Collection: Questionnaire was based ona 5-point Likert Scale and Questionnaire consists of 20questions and distributed among male and femaleonline users.Sampling Area: The urban area around the city ofKolkata, (West Bengal, India) were the sampling areaof this survey.Sampling Frame: Used the concept of Randomsampling from the different areas of Kolkata.Sample Units: Facebook Users.Sample Size: 100Data Collection Methodology:The study was consisting of both primary andsecondary data. They are as follows:i) Primary data Collection: This data was collectedthrough well-structured closed ended questionnairefrom those customers who buy the products throughFacebook portal.ii) Secondary data Collection: The data fromsecondary sources was collected through books,journals, research studies, internet sources.Sampling: Multistage sampling technique was usedfor this study. Based on the single district, it has beenclassified into 2 subdivisions and each subdivision has3 blocks. Out of four sub divisions, researchers havetaken only two sub divisions randomly and the lotterymethod data was collected for each division. That’s why100 respondents have been collected for the samplesize. The District is divided into 2 Stratum: Stratum1:North Kolkata, Stratum 2: South Kolkata. Each subdivision was divided into 3 blocks. Use of Stratifiedcommunicate between customers (current andpotential) in terms of feedback, product development,customer service and support leading way for businessgrowth. However, Shabbir, Ghazi & Mehmood (2016)elaborates that market innovation is a comprehensivetool to meet the needs and wants of their targetcustomers.LITERATURE REVIEWHunt (2010) in his article has investigated that socialmedia plays an important role for the recruitment ofemployees amongst companies. They have researchedthat Corporates are using social media like Twitter andFacebook to recruit and communicate to the talentedand targeted candidates about their value propositionsas well as enhance their brand equity (Bruhn,Schoenmueller & Schäfer, 2012). Employer brandingis very important to recruit right candidates, and notsimply the masses. If employer branding is not done, itwill affect the branding process badly.Aula (2010), in his study, emphasized the importanceof social media’s impact on organization’s strategicreputation management. They also emphasized thatreputation management should begin before thereputation crisis. Besides these, the research depictedthe significant impact on maintaining ambient publicityto maintain the organization’s reputation. Manyorganizational strategies like strategy of absence,strategy of presence, strategy of attendance, strategy ofomnipresence have been depicted.Bashar, Ahmad & Wasiq, (2012) have depicted thatsocial media is now indispensable part of marketingmix as well as promotion mix to sustain the businessrather than traditional style of pure-bricks businessmodel. They have depicted that social media plays agreater role in buying decision making of theconsumers.Gunther et al., (2014), explained that there is a newtrend of using Facebook by small business users due tocost-saving as well as time-saving to promote theirproducts. They have also depicted that Facebook helpsin connecting business with weak ties and helps in thegrowth of business by increasing exposure to targetedcustomers with less expense.Objectives§ To explore the factors which influences thecustomers to buy products through FacebookPlatform.§ To find out to what extent the descriptive factors areinfluencing and motivating the users more for buyingproducts through Facebook portal.SOCIAL MEDIA IN SMALL BUSINESS INDUSTRY IJRTBTInternational Journal on Recent Trends in Business and Tourism | Vol. 2 (3) 2018 JULY | 35random sampling researcher has collected data from 3sub divisions.Sampling design through a diagramFigure 1: Diagram of Sample DesignApplied Stratified random sampling technique anddistrict is divided into three stratum random sampling.Data Analysis MethodologyThe data were collected from the survey from those whobuy products through Amazon portal and will besubjected to data cleaning to identify missing value, dataredundancy, sample characteristics and meet theassumptions of normality. After the data redundancyDescriptive statistics is used to summarize therespondents’ demography. The researcher will safeguardthat all items meet the acceptable limit level.Reliability test on 20 variables
N
%
Cases
Valid
100
100.0
Excludeda

0.0
Total
100
100.0
Table 2: Reliability Statistics
Cronbach’s Alpha
No. of Items
0.714
20
Table 3: KMO and Bartlett’s TestAfter KMO test on 100 respondents with 20 variables ithas been observed that Sampling Adequacy result is0.644. So, it is >0.50, means acceptable.Sample Design for the objective 1§ To explore the factors which influencing thecustomers to buy products through Facebook Platform.Table 4: Sample Design
Sample Size
100
Sample unit
Facebook Users
Test
Factor Analysis test through SPSS 19.0
Table 1: Case Processing SummaryTable 5: Correlation Matrix
Kaiser-Meyer-Olkin Measure of Sampling Adequacy
0.644
Bartlett’s Test of Sphericity
Approx. Chi-Square
348.707
Df
190
Sig.
0.000
a = Listwise deletion based on all variables in the procedure.IJRTBTSOCIAL MEDIA IN SMALL BUSINESS INDUSTRY36 | Vol. 2 (3) JULY 2018 | International Journal on Recent Trends in Business and TourismTotal Variance TableThe variance table explained by the initial solution,extracted components, and rotated components isdisplayed.Table 6: Total Variance Explained
Component
Initial Eigenvalues
Extraction Sums of SquaredLoadings
Rotation Sums of SquaredLoadings
Total
% ofVariance
Cumulative%
Total
% ofVariance
Cumulative%
Total
% ofVariance
Cumulative%
1
3.476
17.382
17.382
3.476
17.382
17.382
2.470
12.348
12.348
2
1.823
9.117
26.500
1.823
9.117
26.500
1.824
9.122
21.469
3
1.721
8.606
35.106
1.721
8.606
35.106
1.725
8.627
30.096
4
1.412
7.060
42.166
1.412
7.060
42.166
1.633
8.165
38.261
5
1.256
6.278
48.444
1.256
6.278
48.444
1.555
7.773
46.035
6
1.206
6.032
54.476
1.206
6.032
54.476
1.384
6.922
52.957
7
1.063
5.317
59.793
1.063
5.317
59.793
1.367
6.836
59.793
8
0.949
4.747
64.540
9
0.931
4.654
69.194
10
0.832
4.161
73.355
11
0.808
4.039
77.394
12
0.701
3.505
80.899
13
0.647
3.235
84.135
14
0.599
2.995
87.129
15
0.556
2.780
89.909
16
0.534
2.670
92.579
17
0.414
2.072
94.651
18
0.397
1.985
96.636
19
0.344
1.721
98.357
20
0.329
1.643
100.00
Scree PlotThe Scree Plot displays the number of Factors versus itscorresponding Eigen Value when no rotation is done,the Eigen values of the correlation matrix equal thevariances of the factors.Figure 2: Scree PlotScree plot showing 7 factors have been extracted fromthe graph after the factor analysis. The following matrixSOCIAL MEDIA IN SMALL BUSINESS INDUSTRY IJRTBTInternational Journal on Recent Trends in Business and Tourism | Vol. 2 (3) 2018 JULY | 37showing 7 factors which are taken out from 20variables.Rotated Component MatrixThis table contains the rotated factor loadings (factorpattern matrix), which represent both how the variablesare weighted for each factor and the correlationbetween the variables and the factor. Because these arecorrelations, possible values range from -1 to +1.Table 7: Rotated Component Matrix
Component
1
2
3
4
5
6
7
Activity
-0.188
0.120
0.131
0.079
0.720
0.128
-0.058
Out of touch
0.142
-0.117
0.058
0.708
0.257
0.037
0.163
Shutdown
0.271
-0.285
0.040
0.226
0.642
-0.249
-0.031
New People
-0.025
-0.003
0.495
0.457
0.025
-0.004
-0.299
Communication
-0.085
0.272
0.251
0.183
0.335
-0.653
-0.105
New Products
0.207
0.309
0.139
0.601
-0.046
-0.057
0.080
Fb Ads
0.141
-0.275
0.325
0.323
0.184
0.273
0.210
Promoted Post
-0.111
0.258
0.130
0.122
0.117
0.717
-0.155
User review
0.662
0.082
-0.104
0.295
0.113
-0.004
-0.198
Trendy
0.238
-0.478
0.345
-0.291
-0.015
-0.157
0.043
New companies
0.247
0.057
0.644
0.032
0.192
0.031
-0.011
Convenient
0.649
0.106
0.061
0.057
-0.180
-0.009
0.013
Easy use
-0.115
0.032
0.034
0.168
-0.084
-0.024
0.832
Life style
0.656
0.072
0.098
0.183
-0.077
-0.112
0.308
BrandAwareness
-0.023
0.191
0.728
0.107
-0.003
-0.016
0.156
AdvertisingProduct
0.175
0.431
0.186
-0.284
0.368
-0.018
0.467
Promotionaloffer
0.666
-0.044
0.241
-0.104
0.133
0.033
-0.219
Newentrepreneurs
0.123
0.610
0.248
-0.070
0.109
0.214
-0.031
Modernity
0.548
0.174
0.064
0.000
0.353
0.435
0.158
Commercialized
0.217
0.721
0.080
0.081
-0.098
-0.103
0.125
Descriptions of 7 Factors1) Customer-centric Web Design: This factor iscreated by the online portals where they designed theweb according to the needs of customers. The productsand services are displayed according to the customerpreference.2) Startup Platform: Sometimes social media providesa business platform for startups and entrepreneurships.It helps them to reach to the millions of consumers withminimal investment. Thus, Social media acts as alaunching ground for startup business.3) Brand Cognizance: As surfing Social media hasbecome part and parcel of the daily life. So, it has becomean area where familiarity with the brand can beincreased. Thus, it helps in increasing Brand Cognizance.The increasing brand cognizance will ultimately lead tobrand recall and brand recognition.4) Product Adoption: Social media platforms help inincreasing the product adoption ratio. Throughprolonged surfing and using social media platforms,customer’s awareness of the product increases. Thishelps the Small and Medium Scale business industry toincrease their product adoption and accelerate theirbusiness.5) Dependency-Based Buying: The popularity ofsocial media platforms has increased widely among itsusers. As a result, it has become a habitual dependencyamong its users. The users not only depend on but alsotrust Facebook. Due to this reason people often buy orpurchase through commercial business links given inFacebook posts.6) Value-Based Post: Sometimes commercial postsare made in such a way that it targets the consumer’svalues and ethics. It changes the approach fromproduct-centric to customer-centric. It helps inprojecting trust-based advertisement which helps inwinning loyalty to the customer.7) User-Friendly: The social media platforms aredesigned in a technically friendly way, so that they canbe used and operated in a very easy way. The webinterface is designed in such a way that various socialactivities as well as commercial links can be accessedvery easily without any technical hazard.Sample Design and Analysis of objective 2§ To find out to what extent the descriptive factors areinfluencing and motivating the users more for buyingproducts through Facebook portal.Table 8: Sample Design and AnalysisIJRTBTSOCIAL MEDIA IN SMALL BUSINESS INDUSTRY38 | Vol. 2 (3) JULY 2018 | International Journal on Recent Trends in Business and TourismTable 9: Total Variance Explained
Component
Initial Eigenvalues
Extraction Sums ofSquared Loadings
Rotation Sums of SquaredLoadings
Total
% ofVariance
Cumulative %
Total
% ofVariance
Cumulative%
Total
% ofVariance
Cumulative%
1
3.476
17.382
17.382
3.476
17.382
17.382
2.470
12.348
12.348
2
1.823
9.117
26.500
1.823
9.117
26.500
1.824
9.122
21.469
3
1.721
8.606
35.106
1.721
8.606
35.106
1.725
8.627
30.096
4
1.412
7.060
42.166
1.412
7.060
42.166
1.633
8.165
38.261
5
1.256
6.278
48.444
1.256
6.278
48.444
1.555
7.773
46.035
6
1.206
6.032
54.476
1.206
6.032
54.476
1.384
6.922
52.957
7
1.063
5.317
59.793
1.063
5.317
59.793
1.367
6.836
59.793
8
0.949
4.747
64.540
9
0.931
4.654
69.194
10
0.832
4.161
73.355
11
0.808
4.039
77.394
12
0.701
3.505
80.899
13
0.647
3.235
84.135
14
0.599
2.995
87.129
15
0.556
2.780
89.909
16
0.534
2.670
92.579
17
0.414
2.072
94.651
18
0.397
1.985
96.636
19
0.344
1.721
98.357
20
0.329
1.643
100.000
Total variance explainedThrough the result of Factor Analysis, we can explainthe total variance and the proportionate variance ofeach factor in our study which is stated here. From theabove table, it is very clear that with the help of the 1stcomponent (Customer-centric Web Design) we canexplain 12.348% of the total variance followed by2 component nd (9.122%), 3 component rd (8.627%),4 component th (8.165%), 5 component th (7.773%),6 component th (6.922%) and last one (6.836%). In ourstudy, we have explained total 59.793% of variance.So, from the above analysis, the first component(Customer-centric Web Design) having the highestinfluencing power on the Nature of FB Users. We canalso say that the last component (User Friendly) of thevariance table has the lowest influencing power on theNature of FB users.Table 10: User Friendly Variance
Sl. Number
Name of the Factor
% of variance
1
Customer centric Web Design
12.348%
2
Startup Platform
9.122%
3
Brand Cognizance
8.627%
4
Product Adoption
8.165%
5
Dependency Based Buying
7.773%
6
Value Based Post
6.922%
7
User Friendly
6.836%
CONCLUSIONFrom the objective 1 it has been observed that five factorshave been generated out of 15 variables, they are:1) Customer Centric Web design2) Startup Platform3) Brand Cognizance4) Product Adoption5) Dependency Based Buying6) Value Based Post7) User FriendlyFrom the objective 2 it is found that two factors withhaving highest influencing and lowest influencingpower on Buying behavior of FB users on FB platform.These are:1) Customer-Centric Web Design (12.348%) havinghighest influencing power and2) User Friendly (6.836% of variance) having lowestinfluencing power.LIMITATION AND FUTURE SCOPE OF THESTUDYThe study was confined in Kolkata and its surroundingareas in the field of Buying behavior and theirpreferences of FB users. In future, Researchers canextend their area of study to other districts or even otherstates. Future Researchers can also explore theirinnovative ideas and continue to find more influencingfactors that motivates the FB users to buy productsthrough Facebook portal and help the small-scaleindustry to reach their destination by promoting theirproducts, changing their marketing strategies and bygiving their ideas to the startup level companies toincrease their businessesSOCIAL MEDIA IN SMALL BUSINESS INDUSTRY IJRTBTInternational Journal on Recent Trends in Business and Tourism | Vol. 2 (3) 2018 JULY | 39REFERENCESAula, P. (2010). Social Media. Reputation Risk andAmbient Publicity Management. Strategy &Leadership, 38(6), pp 43-49.Bashar, A., Ahmad, I., & Wasiq, M. (2012).Effectiveness of Social Media as a Marketing Tool:An Empirical Study. International Journal ofMarketing, Financial Services & ManagementResearch, 1(11), pp 88-99.Bruhn, M., Schoenmueller, V. & Schäfer, D.B. (2012).Are Social Media Replacing Traditional Media inTerms of Brand Equity Creation? ManagementResearch Review, 35(9), pp 770-790.Burt, R.S. (1992). Structural Holes: The SocialStructure of Competition. Harvard Business PressCambridge. MA.Granovetter, M. (1973). The Strength of Weak Ties.American Journal of Sociology, 78(6), pp1360–1380.Gunther, C., Giuliani, E., Gorgoni, S., & Rabellotti, R.(2014). Emerging versus advanced country MNEsinvesting in Europe: A typology of subsidiaryglobal local connections. International BusinessReview, 23(4), pp 680-691.Hunt, K.G. (2010). Social Media in Recruitment.Journal of Property Management, 75(6), pp 36-40.Hyde, A.M., Jain, D., Verma, S.K. & Jain, A. (2017). AStudy of Exploratory Buying Behavior Tendenciesin FMCG Sector. International Journal on RecentTrends in Business and Tourism (IJRTBT), 1(2), pp16-27.Kietzmann, J.H., Hermkens, K., McCarthy, I.P. &Silvestre, B.S. (2011). Social media? Get serious!Understanding the Functional Building Blocks ofSocial Media. Business Horizons, 54(3), pp 241-251.Shabbir, M.S., Ghazi, M.S., Mehmood, A.R. (2016).Impact of Social Media Applications on SmallBusiness Entrepreneurs. Arabian Journal ofBusiness and Management Review, 6(3), pages 3.

READ ALSO...   Digital, Microwave and Optical Communications
Order from Academic Writers Bay
Best Custom Essay Writing Services

QUALITY: 100% ORIGINAL PAPERNO PLAGIARISM – CUSTOM PAPER