The Impact of Online Social Networking on Consumer Trust, Satisfaction, and Loyalty

The research aims to

1. Analyse the relationship between consumers’ participation in online social networking sites and their trust in the focal product, brand or organisation,
2. Analyse the relationship between consumers’ participation in online social networking sites and their satisfaction with the focal product, brand or organisation and
3. Analyse the effect of individuals’ participation in online social networking sites on their loyalty to the focal product, brand or organisation.

Paper Contents

1.0    Introduction………………………………………………………………………………………………………….. 5

1.1 Background to the Research…………………………………………………………………………………………………………….. 5

1.2    Research Aim and Objectives……………………………………………………………………………………………………….. 6

1.3    Significance of the Study………………………………………………………………………………………………………………… 8

1.4    Research Context: Small and Medium Enterprises……………………………………………………………… 9

1.5    Outline of the Dissertation…………………………………………………………………………………………………………. 11

2.0    Customer Trust and Loyalty………………………………………………………………………………… 12

2.1    Introduction……………………………………………………………………………………………………………………………………… 12

2.2    What is Marketing?………………………………………………………………………………………………………………………… 12

2.3    Marketing Models for Small and Medium Enterprises……………………………………………………. 13

2.4    Relationship Marketing……………………………………………………………………………………………………………….. 19

2.4.1    The Advent of Relationship Marketing……………………………………………………………………………………. 19

2.4.2    Relationship Marketing Defined……………………………………………………………………………………………….. 20

2.4.3    Benefits of Relationship Marketing………………………………………………………………………………………….. 21

2.5    Consumer Trust………………………………………………………………………………………………………………………………. 22

2.6    Customer Satisfaction…………………………………………………………………………………………………………………… 26

2.7    Customer Loyalty……………………………………………………………………………………………………………………………. 31

2.8    Behavioural Outcomes…………………………………………………………………………………………………………………. 34

2.8.1    Purchase Intention………………………………………………………………………………………………………………………. 34

2.9    Chapter Summary…………………………………………………………………………………………………………………………… 35

3.0    Social Media and Social Networking…………………………………………………………………….. 35

3.1    Introduction……………………………………………………………………………………………………………………………………… 35

3.2    What is Social Media?……………………………………………………………………………………………………………………. 35

3.2.1    Defining Social Media………………………………………………………………………………………………………………….. 35

3.3.2    Social Media Platforms………………………………………………………………………………………………………………. 38

3.3.3    Social Networking Sites……………………………………………………………………………………………………………… 39

3.3    Influence Marketing………………………………………………………………………………………………………………………. 46

3.4    Social Media Marketing……………………………………………………………………………………………………………….. 51

Web 2.0 for marketing of organizations………………………………………………………………………………………….. 55

Marketing opportunities through Social networks……………………………………………………………………. 58

4.0    Conceptual Framework……………………………………………………………………………………….. 60

Variables for Research…………………………………………………………………………………………………. 61

Brand Page Commitment………………………………………………………………………………………………………………………… 62

Annoyance………………………………………………………………………………………………………………………………………………….. 62

Interactions relating to Brand awareness……………………………………………………………………………………………. 63

Word of Mouth…………………………………………………………………………………………………………………………………………… 63

Consumer trust…………………………………………………………………………………………………………………………………………… 64

Consumer purchase intentions……………………………………………………………………………………………………………. 65

Consumer satisfaction…………………………………………………………………………………………………………………………….. 66

Consumer Loyalty……………………………………………………………………………………………………………………………………… 66

5.0    METHODOLOGY………………………………………………………………………………………………. 68

5.1    Introduction……………………………………………………………………………………………………………………………………… 68

5.2    Research Philosophy…………………………………………………………………………………………………………………….. 69

5.3    Research Strategy and Design…………………………………………………………………………………………………… 74

5.4    Sampling Design……………………………………………………………………………………………………………………………… 78

5.5    Data Collection………………………………………………………………………………………………………………………………… 79

5.5.1    Data Collection Instrument I: The Survey……………………………………………………………………………… 79

5.5.2    Data Collection Procedure I: The Survey……………………………………………………………………………….. 83

5.5.3    Data Collection Instrument II: The Interview……………………………………………………………………….. 86

5.5.4    Data Collection Procedure II: The Interview………………………………………………………………………… 86

5.5.5    Piloting of the Data Collection Instruments…………………………………………………………………………… 89

5.6    Data Analysis……………………………………………………………………………………………………………………………………. 89

5.7    Reliability and Validity………………………………………………………………………………………………………………… 91

5.7.1    Issues of Reliability and Validity………………………………………………………………………………………………. 91

5.7.2    Threats to Reliability and Validity……………………………………………………………………………………………. 94

5.7.3    Improving Reliability and Validity Using Triangulation……………………………………………………… 95

5.9    Ethical Considerations…………………………………………………………………………………………………………………. 97

5.9    Chapter Summary…………………………………………………………………………………………………………………………… 98

REFERENCES…………………………………………………………………………………………………………… 99

APPENDICES…………………………………………………………………………………………………………… 104