Blog 4: Effective of Instagram on Business

Introduction

Instagram is one of the most popular social networking sites where allows users to share their life images and videos to other users. Currently, roughly 75 million Instagram users active every day, and approximately 16 million images are uploaded and shared with their followers (Ting, H., Wong, W. P. M., de Run, E. C., and Lau, S. Y. C. 2015). Additionally, Ting, H., Wong, W. P. M., de Run, E. C., and Lau, S. Y. C (2015) agreed that Instagram is not only as an effective interaction way for the personal reason but it also for organization commitments. For example, many companies use Instagram as a marketing medium to promote their product and service and reach more potential customers. Instagram are unlikely as the other social networking sites, because, Instagram is operating a visual based tactic. Moreover, Instagram is an efficient adverting method as it is said that an image speaks a thousand words (Huey, L. S., and Yazdanifard, R. 2014)

Literature Review

Nowadays, People are living in the busy era; many consumers prefer to look at visual advertising as images and snap videos than traditional advertising with a lot of words Huey, L. S., and Yazdanifard, R. 2014). Therefore, Instagram is an effective marketing tool for industries and firms to promote their brand images, goods, and service to vast of customers with saving cost for designing. This is because, Instagram is offering functions to support every image to be edited and filtered before posting and sharing to their followers (Huey, L. S., and Yazdanifard, R. 2014). Additionally, Instagram not only allows to users and marketer upload their snap photos and videos, but it has also let them interact with other by allowing users to comment on each other’s posts, so marketer could identify their viewers and receive their feedbacks from audiences. However, Instagram is not only offering advantages, but it is also giving disadvantages. For example, images and videos are also known as a reliable tool of Instagram to use for adverting, but it might be the main disadvantage to marketers. This is because, users are trusting on images and videos, so poor and unattractive images or videos will let users unfollow business’s page and bring the business reputation down. (Marko, 2016).

Conclusion and Implications

In the development of networking era, many companies are commonly preferring to use social medias as marketing tools, especially Instagram, to promote their products, service and enhancing brand image. Instagram is the difference from other social networking platforms as it is focusing on offering a better visual based platform and make it convenient for people to communicate with other. However, every marketing tools always offer challenges as poor or unattractive images or videos can affect to business reputation and decreasing followers of the company. Therefore, Marketers need to consider when to create or design photos or videos and mindful of the posted or shared pictures. Moreover, ensuring producing professional and attractive pictures of products or service and offering right messages to right customers. This is because a picture is worth a thousand words.

References:

Huey, L. S., & Yazdanifard, R. (2014). How Instagram can be used as a tool in social

network marketing (Doctoral dissertation, Master’s thesis. Retrieved from http://www. academia. edu/8365558/How_Instagram_can_be_used_as_a_ tool_in_social_network_marketing).

Ting, H., Wong, W. P. M., de Run, E. C., & Lau, S. Y. C. (2015). Beliefs about the use of

Instagram: An exploratory study. International Journal of business and innovation, 2(2), 15-31.

Marko, M. (2016). The Advantages and Disadvantages of Instagram. Mikemarko.com.

Retrieved 28 May 2017, from http://www.mikemarko.com/advantages-disadvantages-of-instagram/

Blog 3: Impact of Social Networking Sites on Businesses

                    Introduction 

Nowadays, Social networking sites have increased rapidly in popularity, as is the most popular online activity. For example, in 2016, 87% of Australians are using the internet every day, and Facebook, Instagram, LinkedIn, Snapchat and Twitter are the most popular trafficked sites on the Internet as 95%, 31%, 24%, 22% and 19% (Sensis Social Media Report 2016 How Australian people and businesses are using social media, 2016). Social networks sites are defined as platforms of people for communicating online and socializing, professional interacting and exchanging information. Social networking sites also are a modern-day marketing way which industries and firms are using to promote their products and brand images, especially reaching and engaging to the large target market. Additionally, Industries and firms using social networking sites are increasing dramatically. For example, in 2016, there are 48% of small and medium Australian businesses and 79% of large businesses use social media as a marketing tool to communicate with their loyal customers and reach worldwide targeted consumers (Sensis Social Media Report 2016 How Australian people and businesses are using social media, 2016). Social networking sites are not only providing opportunities, but they were also providing challenges to marketers and business.

Literature Review

The development of social networking sites is providing many advantages to marketers and businesses for engaging and interacting with loyalty and potential customers, to develop and maintain meaningful relationships between business and customers promptly and at low cost (Vinerean, Cetina, Dumitrescu, & Tichindelean, 2013). Additionally, Social networking sites are an efficient technological platform for social interactions and exchanging information. They offer different values to businesses as facilitating word-of-mouth communication, increasing sales, sharing information business context, and improving brand reputation (Hajli, 2014). However, the transparency of social networking site has also provided challenges to marketers as User-Generated Content (UGC) and negative feedback. This is because, development of social media has given to customers more power about sharing information, their thought and opinions to their friends via the internet. For example, UGC allows social networking users to make comments in various forms such as photos, videos, podcast, ratings, reviews, articles, and blogs (Nadaraja, & Yazdanifard, 2013). Therefore, marketers are hard to control over contents which generated by users. Additionally, Negative feedback from consumers which are conducted through social networking sites can damage the businesses image and businesses sales. For instance, Nadaraja, & Yazdanifard, (2013) indicated that consumer-generated product review, images, and tags which as a valuable source of information for other customers, and users generated content have a high degree of trustworthy in other customers’ eyes.

Conclusion and Implications

Nowadays, Social networking sites have been developed rapidly, and it can be used anywhere with internet connections, it offers power to both customers and companies for communicating, exchanging information and generating content for online platforms. Therefore, Companies are utilizing social networking sites to improve their brand popularity and as a tool to reach out their worldwide target market, and consumers are playing a new role as User generate content and people who share their options, thoughts, and feedback online, instead of just consuming. As a result, the development of social networking sites is not only offering advantages but also it is providing disadvantages to marketers and business. For controlling the challenges, marketers need to consider involving the distribution of user-generated content through social media to control the content effectively. Moreover, marketers must manage social networks efficiently enough to immediately respond and neutralize negative or non-constructive feedbacks. Nadaraja, & Yazdanifard, (2013) have agreed main goals of using social networking sites of a firm is to engage customers, to keep its brand images safety, to offer good quality of product and service to satisfy customer needs.

            References:

Hajli, N. (2014). A study of the impact of social media on consumers. International Journal Of Market Research, 56(3), 387. http://dx.doi.org/10.2501/ijmr-2014-025

Nadaraja, R., & Yazdanifard, R. (2013). SOCIAL MEDIA MARKETING: ADVANTAGES AND DISADVANTAGES (1st ed.). Retrieved from https://www.researchgate.net/publication/256296291_Social_Media_Marketing_SOCIAL_MEDIA_MARKETING_ADVANTAGES_AND_DISADVANTAGES?enrichId=rgreq-c63f5a71ca9ab7e11455336e459e59a0-XXX&enrichSource=Y292ZXJQYWdlOzI1NjI5NjI5MTtBUzo5OTkwMzM0MjY0NTI1OUAxNDAwODMwMjIxMzEx&el=1_x_2&_esc=publicationCoverPdf

Sensis Social Media Report 2016 How Australian people and businesses are using social media. (2016) (1st ed.). Melbourne. Retrieved from https://www.sensis.com.au/asset/PDFdirectory/Sensis_Social_Media_Report_2016.PDF

Vinerean, S., Cetina, I., Dumitrescu, L., & Tichindelean, M. (2013). The Effects of Social Media Marketing on Online Consumer Behavior. International Journal Of Business And Management, 8(14). http://dx.doi.org/10.5539/ijbm.v8n14p66

Blog 2: Effectiveness of Electronic Word of Mouth

Introduction 

Word of mouth (WOM) and electronic word of mouth (EWOM) both are always the most effective marketing mediums, and it is one of the most powerful sources of marketplace information for consumers. Hence it is more trustworthy and credible. However, In the modern world, according to Ismagilova, Dwivedi, Slade, & Williams, (2017), the evolution of technology has led to the change of Electronic Word of Mouth efficiently, EWOM is different with traditional WOM in many other ways. For example, EWOM’s boundary of communication is much larger and enable to spread quicker words via various of platforms like blogs, social media, email, messaging, online communities, etc. Additionally, EWOM allows to reach massive of people in the short term, and it leads spreading greater information and awareness to audiences. While traditional WOM communication is just focusing on small individual groups, societies, and face to face conversation. EWOM is one of the most significant evidence online sources as product reviews product feedbacks and discussions to allow consumers to make a purchase decision. Nowadays, More and more people rely on EWOM’s information when making decisions to buy products.

Literature Review

EWOM communication has incredibly impacted companies’ efficiency as company’s sales volume and its reputation. López, & Sicilia, 2014 has indicated that 90% of online consumers consult post purchasers’ opinions online before purchase, and 70% of users rely on EWOM. With positive EWOM, it impacts consumers’ decision making for purchasing items or services, and it affects customers’ loyalty toward. Although, too much positive information might lead audiences confusing about reviewer’s references which may impact the reliable and authenticity of the review. However, indicated negative message through EWOM communications might lead serious negative consequence more than benefit positive messages which brought to a company (Lerrthaitrakul, & Panjakajornsak, 2014). For example, audiences rely more weight on negative information more than positive information during searching evidence and decision processing. Because, they think negative information are more truthful, informative and valuable than positive messages (Wang, Cunningham, & Eastin, 2015). The researchers have explored the effectiveness of two-sided messages might affect consumers’ attitude toward awareness of reliability, purchasing decision making and organizations’’ reputation. (Wang, Cunningham, & Eastin, 2015)

Conclusion and Implications

Electronic word of mouth is the most effective marketing platforms which affect business’s volume of sales and reputation. Because, EWOM is reliable and trustworthiness, so more and more audience rely on that information to make decisions before buying items. However, everything has both sides negative and positive. Positive EWOM communications can improve consumers’ behavior and attitude toward purchasing a product or service and lead a business to increase the quantity of sales and its reputation. However, Negative EWOM is not also affected by consumer purchasing decisions defectively, but it might also cause the serious cost to business as reputation or losing loyalty consumers. As a result, companies need to take it into account before it happens. By examining and managing EWOM communications properly to receive valuable information as costumers’ judgments about the products, service or company’s reputation. Moreover, need to pay attention to EWOM communications for identifying issues and solve the problems quicker before they are spread widely (Ismagilova, Dwivedi, Slade, & Williams, 2017).

References:

Ismagilova, E., Dwivedi, Y., Slade, E., & Williams, M. (2017). Electronic Word of Mouth (eWOM) in the Marketing Context (1st ed.). Cham: Springer International Publishing.

Lerrthaitrakul, W., & Panjakajornsak, V. (2014). The Impact of Electronic Word-of-Mouth Factors on Consumers’ Buying Decision-Making Processes in the Low Cost Carriers: A Conceptual Framework. International Journal Of Trade, Economics And Finance, 5(2), 142-146. http://dx.doi.org/10.7763/ijtef.2014.v5.357

López, M., & Sicilia, M. (2014). Determinants of E-WOM Influence: The Role of Consumers' Internet Experience. Journal Of Theoretical And Applied Electronic Commerce Research, 9(1), 7-8. http://dx.doi.org/10.4067/s0718-18762014000100004

Wang, S., Cunningham, N., & Eastin, M. (2015). The Impact of eWOM Message Characteristics on the Perceived Effectiveness of Online Consumer Reviews. Journal Of Interactive Advertising, 15(2), 151-159. http://dx.doi.org/10.1080/15252019.2015.1091755