Free The effectiveness of mobile marketing in communicating brand image Dissertation Example
WHETHER SOCIAL NETWORKING-BASED MOBILE MARKETING IS EFFECTIVE IN IMPROVING BRAND IMAGE OF FMCG PRODUCTS? A FOCUS ON THE FOOD & BEVERAGE INDUSTRY OF THE UNITED KINGDOM
(By: Student’s Name)
Name of the Professor
Masters Dissertation for the Partial Fulfillment of Master of Business Administration
18th December 2018
The introduction of smart phones has revolutionized the field of digital marketing. More and more marketers are leveraging the benefits of marketing through the most advanced hand-held devices. Different aspects of mobile marketing are speculated to influence the interaction of customers with brands through innovative communications. There are different facets of mobile marketing which include messaging services-based marketing, video-based marketing, social networking-based marketing, and app-based marketing. Social networking has become the new buzzword of the digital media. However, the extent to which social networking-based mobile marketing influence the brand image and sales turnover of F& B (food and beverage) FMCG brands remain largely inconclusive. Hence, the present article explored the effectiveness of social networking-based mobile marketing in improving the brand image of FMCG brands with special reference to bakery products. The study was based on a mixed methodology approach and comprised of primary and secondary data analysis. Various logistic regression equations were constructed based on different facets of brand image and social networking based variables. The present study showed that social networking-based mobile marketing influence the brand image of different brands across various industry segments. However, its role in improving brand image in the F&B FMCG segment still remains inconclusive. Nevertheless, if brand image is considered a function of favorable purchase decisions, referrals or advocacy, and top of the mind recall of the brand, then social networking-based mobile marketing significantly improve brand image of F&B FMCG products. On the contrary, the perception change on F&B FMCG products seems to be driven by other variables that could be taste, quality, and promotion through other advertisement channels or promotional offers.
Keywords; mobile marketing, social networking, FMCG, food and beverage industry
WHETHER SOCIAL NETWORKING-BASED MOBILE MARKETING IS EFFECTIVE IN IMPROVING BRAND IMAGE OF FMCG PRODUCTS? A FOCUS ON THE FOOD & BEVERAGE INDUSTRY OF THE UNITED KINGDOM
CHAPTER 1: INTRODUCTION
The introduction of smart phones has revolutionized the field of digital marketing. Olotewo & Fadia (2012) highlighted that 66% of Americans owned at least one mobile phone during 2005. By 2009, the number mobile phones owned by each American household increased to four. Moreover, the number of mobile contacts across the globe rose up to 4.6 billion. Such figures support the adoption of mobile technology as an indispensable part of one’s daily living. Olotewo & Fadia (2015) highlighted the popularity of mobile marketing in the contemporary business world owing to the convenience of sending promotional messages to the individual customers. In fact, MM has revolutionized the field of advertising scenario across different nations. The success of MM is largely attributed to the elaborate and effective dissemination of information that has been well accepted by the prospective customers.
Mobile marketing holds the promise of overcoming the barriers of place and time that are often considered as the major limitations of traditional marketing (Fournier & Avery, 2011). Hence, mobile marketing has emerged as one of the most innovative and cost-effective tools in promoting different products and services. Although there is no definite definition of “mobile marketing,” it is defined as “the set of practices which enhances the engagement and communication of various organizations with their prospective and existing clients in a manner that is both interactive and relevant through the use of mobile devices or networks” (Olotewo & Fadia, 2015, 70). The authors further went on to define mobile marketing as a set of practices that entail the use of wireless media for reaching out to the customers in a bid to provide them personalized information irrespective of time and location (Hamilton, Ratner & Thompson, 2011). These practices are speculated to promote ideas, services, and goods to enhance value-addition of the concerned stakeholders. It is further contended that engagement and personalized communication with the prospective and existing clients might enhance brand image and brand loyalty across them.
Wireless marketing through mobile phones (including smart phones) is acknowledged as a cost-effective marketing strategy owing to the significant reduction in tariff-plans and improvements in internet accessibility (availability and speed of connectivity) by the mobile service providers (MSPs) (Yu et al., 2008). Mobile marketing s also recognized as an effective tool for enhancing the sales of different brands by retaining and expanding customer base through productive, customer-centric, and timely communication. The tailored communications are intended to reach the target clientele base at the shortest possible time. MM is also speculated to be an innovative and effective tool for directly marketing goods and services to the far customers who owns a mobile phone. However, the domain of mobile marketing is primarily based on social media and social network marketing.
Social media platforms are recognized as dominant digital communication channels (including mobile marketing) through which consumers interact and share knowledge on different brands that they consider purchasing or recommending. The ICT (2014) highlighted almost 2.7 billion individuals (40% of the total population of the globe) across the globe gain access to online contents. Studies further reflect that almost half of the individuals who are online in the United States visit two or more social networking sites such as the Facebook, Google+, and LinkedIn. These websites have transformed from their traditional search engine operations to provide users the opportunity to navigate content in the Web.
The ICT (2014) acknowledged that the increased popularity of social media channels has been expedited through the penetration of mobile and cellular phones across almost 100% of the global population. Hence, marketers are taking the opportunity of social media channels to reach their customers in a convenient and engaging manner. In this regard, mobile marketing emerged as one of the most compatible and cost-effective tools in increasing the engagement of customers with different social media channels for enhancing the visibility and interaction with products and services with the ultimate aim of improving brand image and brand loyalty across concerned stakeholders. Yu (2013) stated that substantial increase in mobile commerce have motivated marketers to acknowledge the importance of marketing and advertisement through mobile phones. The Mobile Marketing Association (MMA, 2009) speculated that the mobile marketing industry will witness significant growth across the globe. The global spending on mobile ads approximated 1.5 billion USD in 2010, registering a 42% growth in just four years. However, most of the mobile advertisements or communications are tailored toward the age group of 18 years to 34 years. Hence, the appeal of mobile marketing through ads seems to be confined across a limited age group (Olotewo & Fadia, 2015).
Mobile marketing is achieved through different channels such as text-based messaging and graphic-based messaging. On the contrary, mobile marketing based on social media- and app-based marketing can appeal to a wider client base by generating a two-way traffic unlike the unidirectional flow of communication that are achieved through mobile ads. Improving communication traffic and engagement of customers through social networking has significantly improved the visibility and brand image of different products across different industries. Marketers also recognize the value of social media networking for developing brand referrals and information sharing. It is estimated that an average Facebook user makes around 130 friends or social contacts on through social networking. When such individuals interact with each other regarding a product or service they have a 15% higher chance of becoming a customer for that product or service compared to their counterparts who are sensitized on the same through other channels (Olotewo, & Fadia, 2015).
Different companies ranging from automobile to the FMCG are proactive in deploying novel and innovative social marketing strategies to enhance friend image of their products and services (Malar et al., 2011). For example, the General Motors have allocated 25% of its global marketing spending on digital communication platforms for their Cadillac brand translating to a growth of 50% in spending through such communication channels. Learmonth (2012) highlighted that the acceptance of the Cadillac brand amongst its prospective customers was largely driven by GM’s decision to promote the brand aggressively through videos across the social and digital media. Likewise, the American Express Bank registered over 1.5 million card members to participate in the Sync program that provided an opportunity to those stakeholders to match the cards with their social media accounts (such as the Facebook, Foursquare and Twitter) for browsing various offers and prompting fiscal transactions.
Although mobile and social media marketing has revolutionized the field of digital and traditional marketing, different apprehensions and barriers have also been recognized with these forms of marketing. These include the lack of consumer privacy, inappropriate projection of the brand due to technical limitations, and different extrinsic and intrinsic constraints across the customers. Although different studies have explored the role of MM or social media marketing in promoting brands and their impact on product performance, there is inconclusive evidence regarding the way social media marketing interacts and influences consumer attitude and behaviors that are responsible for developing brand image. Previous studies have mostly concentrated in evaluating the differences between social media marketing and traditional marketing in the context of changing marketing needs. Moreover, no studies till date have explored the ways and effectiveness of mobile marketing strategies incorporate social media in promoting the brand image of different products in the FMCG sectors. Likewise, there are no studies that have explored the ways and effectiveness of mobile marketing strategies that incorporate social media for promoting the brand image of F & B products in the FMCG sector of the U.K.
Aims and Objectives
The major aims and objectives of the present dissertation are as follows:
The way social media marketing interacts and influences consumer attitude for developing brand image of FMCG products.
To what extent such interactions are associated with perceptions of customers on brand relationship quality (manifested as brand referrals, top of the mind recall, and purchase decisions) for the FMCG brands.
To identify the different drivers of brand image of FMCG products that is promoted through social networking-based mobile marketing.
To explore the effectiveness of different mobile marketing strategies (including social networking) for promoting the image of FMCG brands.
To explore the perceptions and mindset of U.K. customers on the role of SM-based mobile marketing for a popular FMCG brand belonging to the Food and Beverage (F & B) industry.
Research Questions: Primary and Secondary
The present study explored one primary research question (PRQ) and several secondary research questions (SRQ) that helped to answer the PRQ comprehensively. The PRQ that was explored in this dissertation was “Whether social networking-based mobile marketing is effective alone in improving brand image of FMCG products? The SRQs that were explored in this study include:
1. Whether social networking-based mobile marketing influence brand image of FMCG products?
2. What are the barriers and facilitators of social networking-based mobile marketing in improving brand image of FMCG products?
3. Whether social networking-based mobile marketing deliver effective interactions in influencing brand image of FMCG products?
4. Whether FMCG organizations value MM as an effective multichannel marketing tool in enhancing their brand image?
5. Whether the increased brand image of a product that is promoted through social networking-based mobile improves its market share beyond post-campaign phase?
6. Whether age, occupation, and gender of the target customers interact with social networking-based mobile marketing in influencing brand image of F &B FMCG products?
7. Whether the different domains of mobile-based marketing significantly influence the brand image of different products in the FMCG segment?
8. Whether the popularity of different social media channels accessed through the smart phones play a significant role in influencing brand image of FMCG products?
CHAPTER 2: LITERATURE REVIEW
Purpose of the Literature Review
Literature review for the present study was primarily undertaken based on two broad objectives. The first objective was to identify the evidence-based findings on the effectiveness of mobile marketing and social media marketing in promoting brand image and brand loyalty for different products and services across various industries. The review was further narrowed down to understand the domain of different forms of digital marketing that include mobile marketing, social media marketing, and social networking marketing. The literature reviews then went on to explore the studies that evaluated different perspectives of mobile marketing and social media marketing in influencing brand attributes of different products and services across different industries. The first objective of the literature review was to identify the context and content of the present dissertation. Moreover, the first objective of the literature reviews also helped to frame and fine tune the secondary research questions that were explored in this study.
The second objective of the literature review was to collect secondary data for the methodology section. Hence, the literature review was narrowed down to evidence based literature on the influence of mobile marketing and social media marketing in influencing the brand image of different products related to the FMCG industry. Moreover, the second objective of the literature review helped to identify the findings and white papers on mobile and social media marketing strategies that aimed to improve brand image and brand loyalty of different FMCG products across U.K. customers.
Methodology for the literature review
The literature review was based on a keyboard search strategy. Different keywords where connected with appropriate Boolean connectors to retrieve the relevant articles for the review. The keywords and Boolean connectors that were considered for this review good include mobile marketing, social media marketing, social network marketing, app based marketing, brand image, brand loyalty, brand relationship, brand equity, FMCG products, food and beverage industry, England, the United Kingdom, and customers. The keywords and Boolean connectors were used to access different business websites and online journals on digital and mobile marketing. The findings of the literature review were thematically sorted export the objectives and the research questions that were framed in this study. Articles that were published in English during the last 15 years were only for the review. Linguistic limitations of the articles were primary driven by the language barriers on the part of the researcher, while the period so selected was to compare the transitions in the field of mobile and social media marketing. Different authors have endorsed the importance of thematic analysis for sorting the findings and finding the gaps in literature.
Theme 1: Overview of Digital Marketing: Primary Focus on Mobile Marketing and Social Media Marketing
The field of marketing has witnessed radical transitions over the past two decades. Most of such transitions have been attributed to the evolution of digital marketing strategies. Presently, digital marketing (DM) is the new buzzword in the era of global marketing. Digital marketing is fast replacing the traditional modes of marketing and have been viewed as one of the key non face-to-face marketing strategies in the current era. Studies suggest that DM have been effective in increasing the noise levels and brand image of different products across various industries. Moreover, there is conclusive evidence that DM can significantly improve the sales and performance of different products that could increase the profitability of an organization. Different forms of digital marketing are witnessed in the field of marketing. The popular DM strategies include marketing over the electronic media such as the smart phone, television, and the internet. On the other hand, newer forms of DM such as gamification have significantly enhanced the brand image and the engagement of prospective customers of the respective products. Various authors speculate that the major success of DM stem from improved customer engagement and enhanced visibility of products or services. Among different forms of DM, smart phone -based marketing is popular and more appealing to the prospective buyers.
Olotewo & Fadia (2015) highlighted the popularity of mobile marketing in the contemporary business world owing to the convenience of sending promotional messages to the individual customers. In fact, MM has revolutionized the field of advertising scenario across different nations. The success of MM is largely attributed to the elaborate and effective dissemination of information that has been well accepted by the prospective customers. Mobile marketing holds the promise of overcoming the barriers of place and time that are often considered as the major limitations of traditional marketing.
Theme 2: Features of Mobile Marketing and Social Media Marketing that Influence Consumer Behaviors; Technology-Driven Aspects
Icha & Agwu (2015) highlighted the prominence of social media as a prominent platform for socializing transformation of communications among generation Y who are nurtured by different media platforms in their daily life. Social media have also intruded into the boardrooms and bedrooms of business organizations and the common household respectively. Although social media is acknowledged as a recent phenomenon, it has proven its effectiveness over traditional marketing. Hence, different organizations are thriving to make their presence felt in the World Wide Web develop an effective interface with their near far customers. Different studies contend that the social media is useful in raising brand awareness, brand image, brand loyalty, and brand equity both across near and far customers. The rapid patronage of social media across the professional and personal lives of the general public prompt the social media marketers to use it as an effective platform for raising the visibility and promotion of products and services to their near and far customers.
The authors also highlighted that social media sites are useful in developing social and business networks as well as for exchanging ideas and knowledge between customers and business organizations. The popularity of social media marketing stemmed from the promise of social media sites in delivering updated and legible information regarding a specific brand or service. The hallmark of social media marketing is further prompted by its ability to engage a customer in a personalized manner and exposing him or her to the views (both positive and negative) of other clients regarding specific brands or services. Hence, social media marketing develops autonomy and influence decision-making amongst the prospective and existing customers for a product or service. It is contended that SMM provides the opportunity to gauge EWOM (electronic word of mouth) and COBRAs (consumer online brain related activities) of near and far consumers that could ultimately modulate the business decisions of an organization. Therefore, SMM may also be viewed as an effective tool for conducting market research by default (Icha & Agwu, 2015).
Icha & Agwu (2015) highlighted that the FMCG industry across the globe have witnessed significant growth in SMM during the last two decades. SMM is considered trustworthy by customers owing to the credibility of promotional communications on a brand or service that are either endorsed or challenged by their end-users. Hence, SMM is mainly driven by word-of-mouth and customer-centric communications. Icha & Agwu (2015) defined social media as online tools where the content, opinions, perspectives, insights, and media that can be shared at its core and is all about relationships and connections between people and organizations.
Kaplan & Heinlein (2010) stated that social network sites are the most popular forms of social media that help users to create personalized profiles, post information, and share information with other users irrespective of the temporal and spatial barriers. Such assumptions are supported by the fact that the Facebook already had 750 million members by 2011 end. The Facebook houses almost 900 million objects that prompt interaction between its members. Facebook user accesses almost 80 community pages and creates 90 pieces of contact per month. Moreover, the same user is instrumental in sharing 30 billion pieces of content through web links, blogs, photo albums, and videos during the same period. LinkedIn (another social networking site that is primarily popular across professionals) registered almost 100 million members by 2011. Such findings endorse the role of social networking sites in trafficking huge communication to near and far customers of different products and services.
Erdogmus & Cicek (2012) highlighted that building, maintaining, and enhancing the image and loyalty of a brand across its prospective and existing customers over the long-term is one of the centralized themes of any form of marketing. Hence, marketers are always in the hunt for different options that promise to enhance brand image and brand loyalty. The authors acknowledged the increased popularity of social media marketing with the advent of smart phones and other electronic gadgets that provide faster and convenient access to the internet, electronic media, and the World Wide Web. Although social media marketing and e-marketing are often used interchangeably, the operations of these two forms of marketing differs from one another. E-marketing is primarily undertaken over the electronic media and the World Wide Web (with Web2.0). On the contrary, social media marketing is undertaken through social networking sites (such as the face book and the twitter) and mobile-based apps (of different companies and their channel partners). Likewise, video marketing is undertaken through popular websites such as the YouTube which is also gaining popularity across prospective customers.
Although the field of digital marketing is classified into separate domains such as internet marketing, social media marketing, electronic media marketing, video marketing, and mobile marketing, the border between the definitions and domains of each form of digital marketing is fast disappearing. For example, video marketing which was once viewed as a separate domain of digital marketing is now viewed as one of the most popular forms of social media marketing. Such assumptions are aptly supported by YouTube’s growing popularity amongst the end-users. In fact, YouTube is recognized as the third most visited social networking site after the Facebook and the Twitter. On the other hand, mobile marketing encompasses the domains of social media marketing, video marketing, and app-based marketing, short messaging service (SMS)-based marketing, internet marketing, and even electronic-media based marketing. The advent of smart phones has not only revolutionized the field the digital marketing but has been also instrumental in wiping out the operational definitions of different forms of digital marketing.
Theme 3: Features of Mobile Marketing and Social Media Marketing that Influence Consumer Behaviors; Consumer-Driven Aspects
Although different studies have highlighted the role of brand relationship quality as a critical determinant of marketing success, only a few studies have examined the role of social media in developing customer brand relationships. The diverse type of modalities has enabled mobile marketers to advertise and promote different brands through the smart phones. Various studies have explored the impact of mobile advertisements on the customers’ attitude and buying behavior, however; only a few studies evaluated the technological aspects of mobile marketing and advertisements that include clients’ attitude toward the mobile advertisement, and the brands and products advertised. Nittala (2011) stated the need for exploring the factors associated with mobile marketing that positively impact consumers’ attitudes on their purchase intentions. Some of these factors that were speculated to influence customer’s attitude towards the brand include the involvement of the customer with their respective brand or product, specific design attributes of mobile marketing, the type of communication sent by the marketers through SMS and MMS, and privacy issues of the client while interacting over the mobile communications. Since there is a strong competition between mobile advertisements, there is a need to identify the most powerful modality that should be used by mobile marketers to enhance the brand image of different products and services.
Yu (2013) highlighted that one of the key features of mobile marketing that might contribute to the development of brand image is the interactivity that consumers experience through diverse elements in mobile marketing such as responding to messages or being sensitive to brand promotions or accessing different functions that helps them to remain engaged in a value added manner or provide value addition to their while they are on transit or have adequate time to spare. Different authors have endorsed the role of customer brand interactivity in enhancing brand visibility. In fact, the philosophy of mobile marketing is based on the concept of ubiquitous a unanimous activity. Mobile phones and Smart phones are viewed as instruments that can help an individual or a brand to interact with each other in the most optimized manner by overcoming the limitations of cost, time, and place. Recent studies have highlighted the need for quality and effective mobile or digital content that will prompt desirable consumer behavior.
Yu (2013) explored the ways the different types of interactivity impact customers’ attitude towards mobile marketing. The author explored three types of interactivity consumer-message, consumer-marketer, and consumer-consumer interactivities based on their exposure to mobile advertisements and mobile marketing. The author acknowledged the growing popularity of marketing over the mobile media in reaching out to customers through interactive and innovative content. However, very few studies could explore the impact of the technological attributes of mobile marketing on customer’s perception and interactivities. The growth of mobile and smart phone market has prompted various companies to allocate substantial promotional budget for branding over the mobile media. Ferris (2007) highlighted that mobile marketing has a higher appeal than other forms of media-based advertisements because it can maximize chances to communicate and manipulate the behavior of a captive audience. Yu (2013) reported that almost 20% of the users of smart phones acted upon a mobile advertisement that was sent to them over past few months. JiWire (2010) predicted a whooping market share and steady growth of the mobile marketing industry over the next few years. The author highlighted that more than 50% of the participants in the study were willing to receive location-based mobile advertisements.
Moreover, the clients exhibited different psychology while responding to advertisements when they were at home and while traveling. The customers were more sensitive to advertisements during traveling compared to those when at home (p<0.05). JiWire (2010) further highlighted that customers interacted with advertisements in a more positive and favorable manner compared to those when at home. However, different authors have highlighted the limitations of mobile marketing compared to traditional marketing with respect to diversity, creativity, and in achieving point of sales. To respond to such limitations, marketers are introducing innovative ways to ensure sales promotion, event marketing, social media presence, and customer relationship marketing through the mobile devices. This is because mobile marketers believe that mobile marketing has the potential of real-time connectivity and interactivity with customers that drive brand promotion.
On the other hand, mobile marketing is considered cheaper than other forms of marketing in the digital and electronic media. On the contrary, mobile marketers should be sensitive that the image of a brand is appropriately projected through the mobile media. This is a difficult job as mobile marketers have to depend upon the perception of customers on a specific brand through the virtual media. As a result, the image of a brand might be either over-projected or under-projected to the customers that might deteriorate its patronage over the long run. For example, Ford discontinued its marketing over two products after market research revealed that it failed to meet the desired anthropomorphism and personality of its end-users. Hence, mobile marketers should be sensitive regarding the perception of customers on the appropriate image of a brand. They should implement appropriate strategies and simulation of the product that is intended for their customers. Such initiatives might promote brand relationship quality and reduce apprehensions or risk perception amongst near and far customers on the respective brand. Another limitation of mobile marketing over traditional marketing is the lack of perception on privacy of the customers. Hence, interactive mobile marketing may antagonize the near and far customers of a brand that may ultimately deteriorate the image, revenue, and patronage of the respective brand. Nevertheless, interactive mobile advertisements provide the firms the opportunity to leverage direct and immediate feedback of the customers. On the contrary, different studies have reported differential views on the concept of interaction between customers and marketers or customers and brands. One of the major barriers of such interaction was perceived to be the intrusiveness of the mobile marketers in promoting a brand.
The second barrier is the violation of sentiments of the customers regarding their privacy and informed consent to receive and interact with the promotional messages that were sent to their mobile devices. Leppaniemi & Karjaluoto (2005) showed that although customers did not provide informed consent for receiving promotional messages regarding a brand on their mobile phones, they still reacted favorably to the promotional messages as they were effective and appropriate in enhancing the interaction of end-users with brand or the marketer. However, Yu, et al. (2008) highlighted that appropriateness of customer–marketer and customer-brand is a subjective phenomenon and there are no sacrosanct principles that underpin the effectiveness of such interactions. Cho and Cheon (2005) stated “interactivity should be viewed as the degree to which consumers engage in marketing processing by actively interacting with marketing communications messages with either marketers or other customers or both.”
Yu (2013) defined consumer-message interactivity as the set of interactions that end user exhibits with the promotional messages over the digital media. Search interactions are more realized when websites deliver a large quantity of information. The end users are more likely to interact with the messages through editing, manipulation, and exhibition of information-searching behavior over the digital media to which they are exposed. Examples of consumer-message interactivity include keyword search options, accessibility to search engine operations, and exposure to virtual reality that helps them to differentiate between brands. Hence, consumer-message interactivity is considered a unidirectional promotional strategy that although enhances the interaction of customers with the respective brand but fails to gain their perception or feedback regarding the technical attributes of a brand or the mode of marketing there are used to promote such brands.
On the other hand, consumer-marketer interaction is considered as a bi-directional communication between consumers and marketers which help brand managers to access the apprehensions and requirements of their target audience. Examples of consumer marketer interactivity include exchange of e-mails and resolution of queries through the consumer-marketer hyperlink. It is speculated that consumer marketer interactivity prompts building of brand image if the consumer provides informed consent to the marketer interacting with them over the digital media. In contrast, consumer-consumer interactivity revolves around interpersonal interaction between near and far customers through online discussions, social media interactions, chat rooms, social networking sites, and is not mediated by third parties (including marketers).
Theme 4: Brand Image and Mobile Marketing: Relation to Sales and Purchase turnover
One of the key parameters that are used to gauge the brand image is its total sales turnover that includes purchase over the online media. Most of the customers use their mobile phones to research about a brand that they are likely to purchase or confirm their availability in the stores or to gain access to user reviews, and for collecting information on special offers and discounts, or for gathering discount coupons and promotional codes that assure cost benefit to them. Although mobile and smart phones provide the platform for improved customer-brand interaction, mobile marketers are often challenged with the dilemma as to what extent such interactions translate into the sales turnover of a respective brand through the mobile device. Rather, there can be negative correlation between the number of customer-brand interaction and completion of purchase through the mobile devices. Kumar and Mukherjee (2013) pointed out that the retail purchase in 2012 through smart phones and mobile phones amounted to approximately 25 billion USD. On the contrary, smart and mobile phone-induced traditional sales were estimated to reach 600 billion USD by the end 2016. Mobile phones accounted for only 5.1% of total retail sales and 10% of total documented e-commerce sales. Such disparity in the sales contribution of traditional sales channels and online sales channels (that are primarily promoted by the mobile devices) impose further dilemma across mobile marketers.
To further add to the dilemma, the abandonment rate of the shopping cart through mobile phones was high as 97% that literally signifies that 97 out of 100 customers have rejected the idea of purchasing the specific brand. On the contrary, the abandonment rate of the shopping cart for the retail products through other online channels was 47%. Such findings literally signify that customers are more comfortable in completing their purchase through computers. As a result, individuals who access a brand promotion through their personal computers are likely to complete the purchase with the same device. Hence, it might seem that traditional channels and digital channels other than mobile phones are more effective in ensuring sales turnover. However, such speculation is definitely an oversimplification of the market and marketing dynamics in the era of digital marketing. It was contended that mobile devices help to develop brand image and brand-customer relationship that induces sales of the bran through traditional and other online channels. Such speculations are not unlikely considering the privacy concerns of the customers and the lack of trustworthiness of a brand due to its improper projection over mobile media. Hence, mobile marketers should be sensitive to the needs of the customers in tailoring promotional communication over the mobile and they must not gauge the success of mobile marketing from the number of purchases that take place through the same device.
Such facts are substantiated by various authors (Yang, 2005, Kumar and Mukherjee, 2013, and Ko, Kim & Lee 2009). These authors highlighted that different external and internal barriers tend to limit the appeal of mobile marketing. The major external barriers include the issue of inappropriate projection of a brand over and the associated lack of trust over the small screen, the lack of constant and uninterrupted access to the internet, and slow and poorly-designed mobile shopping sites. The internal barriers are intrinsic to the customer that includes psychological constraints such as risk aversive, personification needs, anthropomorphism attributes, and technology-readiness. Although technological advancements such as multimodal sales promotion through the mobile media can help to overcome the external barriers, the removal of internal barriers would be the primary endeavor of the mobile marketers in expediting and leveraging sales through the mobile devices. In fact, mobile-based purchased is acknowledged as the predominant retail shopping channel for the future.
Brand relationship quality (BRQ) is considered a key contributor in developing brand image and influencing purchase decisions of customers. The BRQ concept was framed based on the observations that customers do not buy brands from just a utilitarian perspective, rather; purchase behavior is considered a conglomerate attribute of various behaviors that depends on the perceived relationships of a customer with a respective brand and the importance of such relationships in their daily life. Hence, some of the factors that promote BRQ are certainly functional and utilitarian while other factors are purely psychological or emotional. The psychological and emotional perspectives of BRQ are considered as the intrinsic barriers or facilitators in influencing brand image and purchase decisions of prospective and existing customers (Kietzmann et al., 2011).
The intrinsic barriers related to BRQ include socio-affective attachments, behavioral ties, and cognitive demands that might either strengthen or deteriorate over time to translate into increased or poor brand image respectively. On the other hand, different studies have highlighted that BRQ is an essential prerequisite for engaging a customer and prompting their interaction with the respective brand or their marketers or end-users over the digital media. The different dimensions of BRQ are “partner quality, nostalgic connections, self-connection concept, and intimacy. Hence, various authors hypothesized that SM channels and social networking sites are the ideal platform for enhancing BRQ that could improve brand image and prompt brand advocacy. Hudson et al. (2015) that there is a lack of evidence regarding the role of social media in influencing customer-brand relationships.
Rothschild (2011) highlighted that 57% of the marketers of sports and entertainment industry have a definite social media strategy. Moreover, such stakeholders registered higher avenues for their respective firms compared to their counterparts who did not engage in social networking marketing. Likewise, Hertzsfield (2015) reported that hotel properties that advertised through the social networking sites enjoyed double occupancy compared to those who did not engage in social networking marketing. In another study, GE reported that consumers responded more positively and favorably to the content that were shared through the social media compared to those that did not involve the social media. In fact, consumers who followed a video that was promoted by GE on a popular social media expressed 83% higher buying intentions compared to their counterparts who did not access the video promotion.
Hollebeek (2011) stated the importance of social media in developing brand relationship and image across customers by stating that “consumer’s proactive engagement and interaction with a specific brand can be viewed as the level of his or her emotional, cognitive, and behavioral investments in the brand.” Hence, the more the involvement of the customers with the brand the higher was the probability of stronger BRQ. Moreover, Porter & Donthu (2008) highlighted that the presence of a brand in an online community help to foster trustworthiness and risk aversion across the near and far customers. This is primarily because of the quick and rapid resolution of apprehensions and queries of the prospective consumers from the online community (including the marketers of the brand). Higher BRQ can also promote interdependence, intimacy, and closeness of the customers with the respective brand that plays a significant role in brand-building.
Kim & McGill (2011) emphasized that BRQ or brand-building potential is not only a function of customer-brand interactions but also the anthropomorphic perceptions of the brand or its promotional strategies across the customers and the cultural differences amongst the respective stakeholders. Hudson et al. (2015) highlighted that anthropomorphism is a strong influencer of BRQ. Moreover, the authors also highlighted that cultural and demographic differences across consumers are strongly related to their risk- avoidance, uncertainty-avoidance, and technology-readiness behaviors. Hence, social networking-based promotion should acknowledge the intrinsic barriers of the customers in improving brand relationship quality and brand image. Otherwise, factors such as perceptions of anthropomorphism and cultural differences might deteriorate BRQ or the image of a brand. Thus, mobile marketers should satisfy the perceptions of customers both from their psychological and technological demands from social networking-based mobile marketing.
Theme 5: Acceptance of Social Networking- and Social media-based Based Mobile Marketing as an Independent Influencer of Brand Image
Different authors acknowledge the role of social media platforms and social networking sites as the dominant communication channel through which consumers gather knowledge, share information on, and interact with the brands they wish to consider, purchase, evaluate, and recommend. The ICT (2014) reported approximately 40% of the global population (approximately 2.7 billion individuals) remain online at any moment. Moreover, over 50% of the adult population of the United States access two or more social networking sites such as Facebook, Google+, and LinkedIn.
Bughin et al. (2011) stated that the popularity of these sites were attributed to the ease of navigation to the desired and niche content compared to the traditional search engines. With 100% penetration of the mobile and cellular phones across the global population, social media-based mobile marketing is considered as the most favorable proposition for improving brand image and brand loyalty across near and far customers. Hence, mobile marketers adopting innovative strategies to reach customers who have a strong presence in the social networking sites for developing brand image and visibility. SM channels and social networking sites provide unique opportunity to marketers to communicate with their customers through bidirectional interaction. Such interactions help marketers to gain access over unmediated customer insights effective and fast manner.
According to a report, Facebook witnesses 130 friends or social contacts of an average user of the world’s largest and most admired social networking site. The report further suggested the probability of purchasing a product is approximately 15% higher across customers who are members of at least one of the popular social networking sites compared to their counterparts who do not have a presence on the social media. Berger and Milkman (2012) suggested that social media and social networking sites have the power to rapidly intrude the prospective buyers of a product through viral and targeted spreading of products or services.
Various companies are proactively engaging in mobile marketing based on social media networking. General Motors have shifted 25% of its spending on the promotion of its Cadillac brand on the digital platforms compared to 17% of its spending that were undertaken on the same platforms three years ago. Interestingly, the allocation of spending was distributed differentially for the various dimensions of online-based marketing with special emphasis on the social networking based video channels. American Express ensured the participation of its 1.5 million card members in a Sync program that helped the members to match their cards with their social media accounts for browsing special offers completing a desired transaction.
Summary and Gaps in Literature
The literature review did provide conclusive evidence that social networking-based mobile marketing does improve engagement and interaction of customers with their respective brands, however; there was inconclusive evidence regarding their role in improving brand image of such brands. Nevertheless, the success of mobile-based marketing is manifested by the growth in market share of different FMCG brands related to the food and beverage industry. One of the major technology-based barriers of mobile-marketing includes the lack of technology in ensuring appropriate projection (visualization) of a brand. On the contrary, the major customer-centric barriers of mobile marketing include their failure to reduce risk aversion and ensure purchase of the brand through the same hand-held device.
CHAPTER 3: METHODOLOGY
Study Design and Sampling
The present study was conducted as a mixed-methodology study. Both primary and secondary data were critiqued for answering the research questions. The primary data analysis was based on the subjective and objective responses of the study participants (n=20). The secondary data analysis was based on evidence-based literature that was obtained from different publications and industry white papers. The qualitative and quantitative data obtained through the primary and secondary analysis was used to draw conclusive evidence on the research questions that were explored in this dissertation. The study was appraised based on a methodology triad that involved integration of primary and secondary data.
All participants for the primary data analysis belonged to the age group from 25 years to 48 years. The age group was so selected because the literature review reflected that the perceptions of brand image promoted through mobile and social media marketing are often inconclusive due to the confounding effects of age and demographic background of the customers. The study participants were segregated into two experimental groups. The participants who owned a smart-phone and were consumers of Warburtons were only included in the study. Hence, a purposive sampling was carried out to select the study participants. The first experimental group (n=10) comprised of individuals who owned a smart-phone and also hold a membership of at least one popular social networking site. The second experimental group comprised of individuals who owned a smart-phone but did not hold any membership of popular social networking sites. The primary data for the present study were collected through a semi-structured interview. An e-mail invitation was sent to selected individuals. The semi-structured interview primarily explored the perception of participants on “Warburtons” that deployed social-networking based mobile marketing for improving brand visibility and equity across its near and far customers. The details of the questionnaire that was used for the semi-structured interview is presented in table 3.1.
Table 1: Semi-structured questionnaire
Please put your score on a scale of 1 to 10 (except for Q1 where you may put any score based on the sequence of recall)
What is your TOM recall rank for Warburtons in the daily consumable F & B segment?
Whether you access the social networking sites for offers or communication on Warburtons?
Has your TOM recall changed in favor of Warburtons during the past three years?
Do you feel SM presence have increased your TOM recall score during the period?
Has your inclination to purchase Warburtons products got moderated during past three years? If so by how much?
Has your perception (based on quality, taste, availability, and supply) for Warburtons products got moderated during past three years by social media? If so by how much?
What is the most common social networking site or social media channel you access through your smart phones? (By convention, Face book users were rated= 3, twitter users were rated=2, and LinkedIn users were rated= 1)
Do you feel that SM channels accessed through mobile/smart phone provide a better visualization of any product?
To what extent do you feel that gamification or other mobile-apps could have increased your perception and purchase intention for Warburtons product?
What is the level of referral for Warburtons products that you usually extend?
What is your age and occupation?
Secondary data was obtained from the literature review and industry white papers. The data was centered on influence of mobile marketing and social media marketing in influencing the brand image of different products. Moreover, the secondary data also comprised publications and white papers on social networking based mobile marketing that aimed to improve brand image and brand loyalty for different FMCG products across U.K. and global customers. The studies were critiqued based on their methodology and findings. The studies and white papers from which secondary data were obtained and critiqued are presented in table 3.2.
Table 3.2: Summary of Secondary Data Sources
Name of the Study/ White Papers Objective
Hudson et al. (2015) Influence of social media interactions on consumer-brand relationships
Yu (2013) Response of young consumers to the mobile advertisements based on different types of interactivity
Kumar and Mukherjee (2013) Explored the purchase behavior of consumers on mobile devices based on their personality traits, perception on mobile shopping, and technology acceptance, and technology readiness attributes.
Xie, Zhao, & Xie (2011) Effect of interface design of mobile handsets in influencing brand image and purchase decisions across college students in China
Bhabe, Jain, & Roy (2013) Perception of Gen Y of India on mobile app-based marketing
Hudson et al. (2015) Impact of social media networking in influencing brand image and purchase behavior through the development of customer-brand relationship
Erdogmus & Cicek (2012) How social media channels influence brand loyalty across Turkish consumers
Industry White Papers on Warburtons
www.statistica.comReports include statistics of growth of the different brands, the marketing mix of advertisements of the firm, the budget allocation for social network marketing, and perceptions and verbatim of the senior management.
Industry white papers on different brands that used mobile marketing strategy manufactured in India
www.msn.com Reports include statistics of growth of the different brands, the marketing mix of advertisements of the firm, the budget allocation for social network marketing, and perceptions and verbatim of the senior management.
Data Analysis & Software
Both descriptive and inferential statistics was used to present and interpret the findings of the study. The descriptive statistics were used to summarize the raw data in terms of mean and standard deviation. The descriptive statistics also formed the basis of inferential statistics that were undertaken in the study. The major inferential statistics that were performed in this study include statistical tests of comparison such as ANOVA, correlation analysis based on Pearson’s correlation coefficient, and logistic regression models that include dummy variables. Different regression models were constructed based on the primary and secondary research questions that were evaluated in this study. Stepwise regression analysis was conducted with brand image as the dependent variable and different aspects of mobile marketing and social networking-based marketing as the independent variables. Correlation analysis preceded regression analysis to explore the relation of the independent variables with brand image separately. The brand image of Warburtons was indirectly assessed from TOM (Top of the Mind Recall), Referral for the brand (REFERRAL), PURDECI (Purchase decision), and perception change on the brand (PERCHANG). The quantitative analysis for the present study was undertaken through the SPSS (IBM; version 14) software.
Data Interpretation and Hypotheses Testing
The quantitative analysis was explored based on the acceptance and the rejection of the null (H0) and alternative hypothesis (H1) respectively. The detailed statistical analysis and the hypothesis associated with the specific SRQ are presented in table 3.3.
Table 3.3: detailed statistical analysis and the hypothesis associated with the specific SRQ
SRQ1 H0: social networking-based mobile marketing do not influence brand image of FMCG products (p>0.05)
H1: social networking-based mobile marketing significantly influence brand image of FMCG products (p< 0.05)
SRQ2 H0: The identified barriers and facilitators of social networking-based mobile marketing do not influence brand image of FMCG products (p>0.05).
H1: The identified barriers and facilitators of social networking-based mobile marketing significantly influence brand image of FMCG products (p<0.05)
SRQ3 H0: social networking-based mobile marketing does not deliver effective interactions in influencing brand image of FMCG products (p>0.05).
H1: social networking-based mobile marketing deliver effective interactions in influencing brand image of FMCG products (p< 0.05).
SRQ4 H0: FMCG organizations do not value mobile marketing (MM) as an effective multichannel marketing tool in enhancing their brand image (p>0.05).
H1: FMCG organizations significantly value mobile marketing (MM) as an effective multichannel marketing tool in enhancing their brand image (p<0.05).
SRQ5 H0: Improved brand image of a product that is promoted through social networking-based mobile marketing does not improve its market share beyond post-campaign phase (p >0.05)
H1: Improved brand image of a product that is promoted through social networking-based mobile marketing significantly improve its market share beyond post-campaign phase (p <0.05)
SRQ6 H0: The age, occupation, and gender of the target customers does not interact with social networking-based mobile marketing in influencing the brand image of F &B FMCG product (p>0.05).
H1: The age, occupation, and gender of the target customers significantly interact with social networking-based mobile marketing in influencing the brand image of F &B FMCG product (p<0.05).
SRQ7 H0: Different domains of mobile-based marketing does not influence the brand image of different products in the FMCG segment differentially (p>0.05)
H1: Different domains of mobile-based marketing significantly influence the brand image of different products in the FMCG segment differentially (p<0.05)
SRQ8 H0: The popularity of different social media channels accessed through the smart phones does not play a significant role in influencing brand image of FMCG products (p>0.05).
H1: The popularity of different social media channels accessed through the smart phones play a significant role in influencing brand image of FMCG products (p<0.05).
The H0 for the statistical tests of comparison contended that there was no significant difference between the means of two or more groups. Any observed difference was contended to have stemmed from the chance factors associated with random sampling. The H0 for the statistical tests of comparison was accepted if the p-value for the relevant test was greater than 0.05 (p>0.05). The H1 for the statistical tests of comparison contended that there is significant difference between the means of two or more groups. Any observed difference was not contended to have stemmed from chance factors associated with random sampling. The H1 for the statistical tests of comparison was accepted if the p-value for the relevant test was lesser than 0.05 (p<0.05).
The H0 for the logistic regression analysis contended that the independent variables did not significantly influence the dependent variable that was considered for the analysis. Any observed influence was contended to have stemmed from chance factors associated with random sampling. The H0 for the regression analysis was accepted if the p-value for the same was greater than 0.05 (p>0.05). The H1 for the logistic regression analysis contended that the independent variables did significantly influence the dependent variable. Any observed influence was contended to have stemmed from the changes in the magnitude and direction of the independent variables. The H1 for the regression analysis was accepted if the p-value for the same was lesser than 0.05 (p<0.05).
Likewise, the H0 for the correlation analysis contended that the variables that were considered in this study were not significantly correlated with each other. Any observed correlation was contended to have stemmed from chance factors associated with random sampling. The H0 for the correlation analysis was accepted if the p-value for the Pearson’s correlation coefficient was greater than 0.05 (p>0.05). The H1 for the correlation analysis contended that the variables that were considered in this study were significantly correlated with each other. Any observed correlation was not contended to have stemmed from chance factors associated with random sampling. The H1 for the correlation analysis was accepted if the p-value for the Pearson’s correlation coefficient was lesser than 0.05 (p>0.05).
The logistic regression equations were appraised both from its p-value and the value of coefficient of determination (R2) and adjusted coefficient of determination (adj-R2). The coefficient of determination reflected as to what extent the changes in the magnitude and direction of the dependent variable could be explained by the changes in the magnitude and direction of the independent variables for the sample that was explored. A coefficient of determination (R2) value of around 90% was considered the benchmark for accepting the robustness of cause-and-effect relationship between the independent variables and dependent variable. A coefficient of determination (R2) value of 90% signify that more than 90% the changes in the magnitude and direction of the dependent variable could be explained by the changes in the magnitude and direction of the independent variables for the sample that was explored in the study.
On the contrary, the adjusted coefficient of determination (adj-R2) reflected the extent to which the changes in the magnitude and direction of the dependent variable could be explained by the changes in the magnitude and direction of the independent variables for the population that was explored. An adjusted coefficient of determination (R2) value 90% signify that more than 90% the changes in the magnitude and direction of the dependent variable could be explained by the changes in the magnitude and direction of the independent variables for the population that was explored in the study.
The regression analyses were also explored for the significance level of the intercept. If the p-value of the intercept was less than 0.05, it was contended that there could be other variables apart from the independent variables that were considered for the study to have influenced the dependent variable. Under such conditions, the strength of the regression analysis was considered to be low. However, if the p-value of the intercept was more than 0.05, it was contended that there cannot be other variables apart from the independent variables that were considered for the study to have influenced the dependent variable. Under such conditions, the strength of the regression analysis was considered to be high.
Statistical Rigor and Reproducibility of the Study
KMO and Bartlett’s test
The KMO and Bartlett tests were conducted for detecting whether the sample size and variables that were considered for the study was appropriate. A KMO measure nearing 0.6 or beyond 0.6 was considered as the benchmark of the appropriateness for sample size, while a p-value less than 0.05 for the Bartlett test was considered for the appropriateness of the variables that were considered for the study.
Since the study did not impose direct harm to the participants, the ethical considerations that govern research with human subjects were not violated under any circumstances during the entire period of the study. Moreover, the confidentiality and privacy of the study participants where ensured before, during, and after the end of the study. The secondary data that was used for the study was appropriately referenced as well as the literature review acknowledged the contributions of the respective authors to appropriate bibliography. The present dissertation included only those secondary data that were publicly available and those were not subjected to copyright violation.
CHAPTER 4: RESULTS AND DISCUSSION
The results were presented based on secondary and primary data.
Secondary Data Analysis
Secondary Data Analysis Based on Studies Published on different facets of Mobile marketing including the social media-based promotion
The secondary data that was explored in this study is presented in Table 4.1.
Table 4.1: Secondary Data Based on Published Studies
Name of the Study Methodology Results and Interpretation
Hudson et al. (2015) Three studies were conducted with customers from France, the U.K., and the U.S. The participants were segregated on the basis of their engagement with the respective brand (athletic shoes, automobiles, and notebook computers) either over the social media or besides the social media. Regression analysis was performed with BRQ as the dependent variable and demographic background, social media use, and brand anthrop orphism as the independent variables. Social media interaction significantly and positively influenced brand relation quality. The correlation was more prominent for brands that fulfilled anthropomorphism attribute of the end–users. Two follow-up studies reflected that cultural background of the customers confounded the relationship between social media and BRQ based on uncertainty avoidance. Brand relationship quality does not depend only on the social media interactions but are also influenced by different intrinsic constraints of the customers such as anthropomorphism and cultural differences (p<0.05).
Yu (2013) Exploratory analysis involving a web-based experiment where college students were inquired regarding four types of interactivities; no interactivity, consumer-message interactivity, consumer-marketer interactivity, and consumer-consumer-consumer interactivity on a brand over their mobile devices. The participants significantly differed in their attitudes 9positive and negative) toward the mobile advertisements based on different levels of interactivity. The purchase intentions were significantly higher for customer-message interactivity followed by customer-consumer interactivity compared to no interactivity (3.15 and 3.05 versus 2.87, p<0.05)., while positive attitude towards brands advertised was higher for consumer-consumer interactivity and consumer-message interactivity compared to consumer-marketer interactivity (2.70 and 2.75 versus 2.64, p<0.05). Young consumers are apprehensive in interacting with marketer and are influenced more by promotional messages and social media interaction.
Kumar and Mukherjee (2013) Cross-sectional survey in which the subjective responses of the participants (age group 18 to 45 years) were codified and analyzed qualitatively through the Nvivo software. The correlation analysis was based on the personality and the technology savvy attributes of the consumers in relation to purchase behavior over their mobile devices. The authors’ also implemented structural equation modeling that was backed by confirmatory factor analysis. The standardized beta coefficients were considered for the final interpretations. Higher perceived usefulness significantly enhances optimism and innovativeness of customers to engage in mobile shopping while higher perceived ease of use and security significantly affected purchase behaviors. On the other hand, affective attitude developed through technology did not influence purchase decisions (p>0.05), while cognitive attitude significantly did so (p<0.05). The authors concluded that the user personality traits towards technology influence their perceptions on mobile shopping. Mobile marketers should focus in fulfilling the cognitive needs of the end-users to enhance brand image and purchase behavior across them.
Xie, Zhao, & Xie (2011) Cross-sectional survey conducted across 442 undergraduate college students of China. Different ubiquitous features of the hand-held devices, large screen size, ease of navigation significantly foster brand image and influence purchase decision of consumers (p<0.05). Mobile marketers should tailor their communications and advertisements based on the configuration and limitations of hand-held devices to project or promote brands. After controlling for interface design of the hand-held devices, hierarchical regression analysis indicated that entertainment and informativeness significantly influenced engagement of the customers with the mobile advertisements (p<0.05). the authors highlighted that marketers should patron the concept of “infoentertainment” while designing advertisements or promotional strategies over the mobile media for enhancing the appeal of different brands to young consumers.
Bhave, Jain, & Roy (2013) Explorative analysis through semi-structured interviews with college students belonging to India. Qualitative analysis was undertaken to identify their perceptions and expectations on app-based marketing. The authors conducted focus group discussions with the respective participants. The authors concluded that involvement capacity of the apps, technological and navigation hindrances caused by the apps, the lack of privacy and trustworthiness, issues related to contextualization and personalization, credibility of the apps, and incentives offered by the apps significantly influenced their decisions to access such apps. Mobile marketers should design compatible and user-friendly apps for promoting their brands and enhancing purchase behavior of the customers on the same device.
Hudson et al. (2015) Extended literature review involving different studies that explored role of SM in influencing brand relationship across different industry and consumer segments. Rothschild (2011) explored the ways social media is used, manipulated, and managed by sports and entertainment industry. The author highlighted that 57% of these industries have defined social media strategies that account for higher revenues compared to those that do not engage the SM. Hertzfeld (2015) reported that hotel properties that involved the social media exhibited a double occupancy rate compared to those that did not involve the SM.
It was reflected that the likelihood of buying or recommending a product significantly increases once the number of followers for the respective brand increases in the SM.
GE concluded that consumers respond more positively and timely on contents that are shared through the SM compared to other modes of advertising. Moreover, SM-based marketing prompts positive and fast responses from the customers to aid quick resolution of their queries and needs on a specific brand.
Consumers who viewed a promotional video on the SM exhibited 83% more likelihood for the GE brand compared to those who were exposed to the same content through paid advertising.
Erdogmus & Cicek (2012) Conducted a study across Turkish customers (n=30) and implemented regression analysis to understand their drivers for brand loyalty Provision of advantageous campaigns, relevant contents, popular contents, and visibility across multiple channels make social media channels an effective option in enhancing brand loyalty across Turkish customers (p<0.05).
Secondary Data Analysis Based on Industry white papers that engaged SM-based online marketing for FMCG brands
White papers on Mobile-marketing and SM-based marketing of FMCG brands: Global Scenario
Although a study concluded by the Boston consulting Group that 40% of the FMCG consumption sector would be digitally driven by the end of 2020, presently, only 10% of the overall advertisement budget of the global FMCG sector is allocated to retail marketing. The anomaly in digital marketing and intention to advertise on the digital media is subjected to prejudices because most of the FMCG products are bought offline. Moreover, there is little control that different brands have point of sales owing to the relationship with their customers. These prejudices make it difficult for marketers to link the success of online or digital campaign in preference to face to face sales of FMCG products. On the contrary, there is a huge opportunity to help the FMCG brands to establish relationship with their near and far customers much earlier in the product purchase cycle. Such speculations amply supported by Warburtons marketing success over the digital and the social media. The benefits of mobile marketing in expanding the market of different FMCG products in the Indian consumer market are fast becoming well established. Mobile marketing has helped brands such as Dabur, Britannia, and Heinz to multiply their market share both in the Indian as well as in the global scenario.
In a recent digital campaign, Heinz launched a campaign that made use of reverse psychology prompting the consumers to skip a YouTube advertisement that was intended for the customers. The strategy not only clicked but registered high completion rate of 32% against the industry average (regarding response from customers or viewers on surveys and advertisements) of 15 to 18%. The campaign launched by Heinz registered a recall rate of 52% for their brands. Likewise, Dabur identified potential digital power brands that include Dabur Honey, Real fruit juice, and its range of bleaches that exhibited strong urban connectivity. Dabur further integrated its honey advertising in top fitness apps apart from advertising them in popular e-commerce platforms. The company also introduced gif banners for their “Real” mock-tails to attract the fitness-savvy clients. Such strategy not only helped to engage the customers but also complete the purchase. As a result, Dabur was able to gauge the brand image as well as the return on investment on the brand over the digital media.
Mobile marketing has strongly influenced the marketing strategies of Dabur. The company highlighted that most of the campaigns (around 75%) launched by the company on social media and other public websites were accessed through the mobile phones. Moreover, the company reported that a similar percentage of the campaigns remained engaged with its target customers through the mobile phones itself. The company witnessed that a considerable chunk of the organic traffic related to the brands happen through mobile phones (especially the smart phones). The success of mobile marketing in the urban market prompted Dabur to launch its digital campaigns in the rural segment. The success of rural mobile marketing of Dabur is manifested by Vatika (an Ayurvedic shampoo product). The campaign used feature phones through outbound calls where the advertisement was played on the phone and free hair tips and offers on its shampoo products were simultaneously extended to the target customers.
Likewise, Modi Naturals (another FMCG house) are using mobile marketing aggressively f their food products. The spending is primarily on the social media such as the Facebook, Instagram, and Youtube advertisements. These initiatives are primarily brand awareness campaigns where the cost is around 200 INR per thousand posts. On the other hand, the cost to the company for the video posts estimated to be 700INR for similar traffic. However, the main challenge of mobile marketing is to evaluate its reach to the customers compared to the traditional media advertisements. Therefore, the company is aiming to prevent spill and slippage of its customers by segregating target customers for traditional media and social media channels. The emergence of e-commerce in the FMCG segment has prompted certain changes in marketing strategies. Hence, the major players are using redirect options that are promoted through the social media to fulfill the choice of customers and prompting them to complete the purchase.
Although the digital media have emerged as a key vertical in the field of grocery marketing, modern trade still account for 30% of the FMCG sales. Online marketing through mobile phones and social media networking have emerged as a new point of sale and mobile marketing is having a direct impact on the brand image and sales of different FMCG products. The fact was substantiated from the sales of Britannia’s product “Little Hearts” that registered a whooping increase in sales even after the post-campaign phase. Since the target customer group aged between 17 years and 22 years, the company solely relied on digital marketing for the campaign. The chief director Foxy moron stated “to have a campaign that result in highest sales it is very important to have bottom and mid- funnel datasets to understand what the customers exactly did after clicking the advertisement and after being redirected to an e-commerce platform. Although the present e-commerce platforms do not reveal such data, it would be interesting to identify what proportion of sales was registered on such platforms that were kindled through the social media networking.
White papers on Mobile-marketing and SM-based marketing of FMCG brands in the U.K: The Warburtons experience
The ten fast moving FMCG brands in the United Kingdom include Warburtons, Heinz, Hovis, McVitie’s, Walkers, Kingsmill, Muller, Coca-cola, Cadbury’s dairy Milk, and Bird’s Eye with Warburtons leading the list with 540 million consumer reach points followed by Heinz at 365 million consumer reach points. The last member of the list Birds Eye enjoys a patronage of 178 million consumer reach points that is only one-third the market share (in terms of consumer reach points) of Warburtons. One of the major factors that are responsible for enhanced and higher market share of Warburtons is its focus on digital innovations. Warburtons is a British baking firm that started its journey way back in 1876 with a 24% share of the bread market of the United Kingdom. Traditionally, the company has focused in marketing of its products over the social media. In fact, Warburtons decided to double its investment in television advertisements as a report published in the www.statitica.com highlighted that television advertisements accounted for the highest ROI (return on investments) for the company which was compared to other modes of marketing (4.1 versus 1).
Warburtons further realized that the preference of customers is shifting towards social media channels that are mostly accessed through the smart-phones and digital tablets compared to television. Hence, Warburtons shifted its focus to market its brands through social media marketing. The SM marketing strategies pivoted on building a series of value-added interactive apps that were accessible to the Facebook users. These interactive apps were mainly based on health assessment, nutritional quality, and fitness. For example, the “calcium calculator” provided the daily calcium requirements of its prospective consumers in an individualized manner based on their age, gender, and calorie requirement profile. The primary focus of these apps was to engage the customers with the value that Warburtons offered through its products. Hence, the company emphasized on building the brand image of its products through the SM channels that is primarily accessed through the smart phones. The strategic decision of Warburtons is supported by the growth in Facebook memberships in the United Kingdom till 2016.
Facebook enjoyed a market share of 64.2% of the total social media channels that are available and accessed by the British consumers. However, Facebook lost a fair amount of share (4%) to Pinterest and Twitter from 2016 end to the beginning of 2018 (64.2% versus 60.1%). However, Facebook regained its market share in the latter half of 2018 which presently stands at 64.5%. During the same period, the major competitors of Facebook (Pinterest and Twitter) in the consumer market lost its market share to the global social media giant. Warburtons did not shift its ally with Facebook even when the social media giant lost its market share to Twitter and Pinterest. The philosophy of Warburtons was to promote, ensure, and abide by brand loyalty for themselves and for their customers. Hence, Warburtons did not want to lose out the customers who were loyal to both Warburtons and Facebook. On the other hand, Warburtons recognized the mindset of the United Kingdom customers based on the “motivations that prompt a UK customer to change brand” and “motivations that prompt a UK customer to remain loyal to a specific brand and eventually becoming the torch bearers for such brands.” The social media-based marketing aimed to promote a variety of Warburtons products by increasing their noise level and engagement with the near and far customers.
The strategy of Warburtons was a huge success as it helped the brand to become the third most engaged-with brand on Facebook U.K. In fact, the results of such collaboration with Facebook were eminent during the first year itself. The Warburtons brand reached a whopping 27 million individuals amongst which 38,000 individuals continued to remain engaged with “Brand Warburtons” through “Brand Facebook.” The online advertising camping through the social media not only helped the brand to reach 27 million individuals engaging 38,000 individuals till date but also generated a positive impact on the revenue of the company. Warburtons online market share registered a 25.7% growth through the supermarket.co.uk (a popular online sale channel) during the first three months of the advertisement campaign. The brand also witnessed a whopping 3818% increase in its audience reach through the two most popular channels of the social media (Facebook and Twitter).
The social media-based marketing dynamics of Warburtons reflected that the company remained sensitive regarding the fluctuating market share of the social media channels in the United Kingdom. For that reason, Warburtons quickly acknowledged the gaining popularity of Twitter in the U.K. consumer market. Hence, the company diversified its social media-based advertising budgets among Facebook and Twitter during 2016 and 2017. Such decisions were not unsurprising during the fact that Facebook lost approximately 4% of its market share in the United Kingdom to Twitter and Pinterest during 2016 till the beginning of 2018. However, Warburtons did not lose its interest and focus on Facebook-based advertising considering Facebook remain the social media giant across the globe and also to ensure the loyalty of the brand 38,000 members who continued to remain engage with the company through Facebook. Once again, the decision of the company was well paid off because Facebook not only regained its market share from Twitter and Pinterest during the second half of 2018 but is showing trends of gaining a higher market share by the end of 2018 or the first half of 2019.
The company’s philosophy of respecting the social-media based community is portrayed from its decision to launch the “All Ends Loaf” bread brand. The incidence stemmed from an April Fool’s joke that was promoted by the company on the social media for the brand “All Ends Loaf.” The promotional strategy went down so well that the company was forced to respond to the demand of its customers to launch a limited edition version of the loaf. The loaf comprised only the crust ends of the popular “Warburtons Toastie.” The advertisement generated so much hype and patronage that helped the brand generate hundreds of comments and 1000 likes after the picture of the brand was posted on the Facebook at the start of the month. The marketing director at Warburtons, Mark Simester stated that he had no idea that the spoof loaf would receive so much enthusiasm and interests across the social media community. Hence, he exclaimed “we were pleased to have baked limited editions of the All Ends Loaf for our most discerning crust lovers on the Facebook.”
The comment of Mark Simester drew huge accolades from the Facebook community owing to the respect given by the company to its customers. Mr. Siemens went onto state “we always look for ways which we can be innovative to meet our customers’ needs in the best possible manner, and it will be interesting to see feedback we receive on the actual All-Ends loaf once our fans get the opportunity to sample it.” The campaign was the brainchild of WCRS and the real All-Ends Loaf has been sent out to the brands biggest Facebook fans. In fact, social media has become a core component of the company’s digital marketing strategy and the company now thrives amongst community who are not only customers but also the advocates of “Brand Warburtons” for their lifetime. The Warburtons case study clearly reflected the effectiveness of social media and social networking marketing in improving not only the brand image of a FMCG product in the United Kingdom, but also its effectiveness in improving the market share and revenue generation on the brand. Hence, the Warburtons case study also reflected that improved brand image of a product translates into increased market share and revenue generation from the same. Finally, the case study also reflected that high customer engagement of a band through the social media channels improve brand image and brand visibility that prompts its advocacy to others who tend to remain insensitive to the promotional advertisements of the brand in the social media.
Primary Data Analysis
The primary data analysis was based on the structured interview with study participants (consumers of Warburtons). The summary of the raw data of the structured interviews with the participants is presented as descriptive statistics in Table 4.2.
Table 4.2; Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
USER 20 .00 1.00 .5000 .51299
TOM 20 1.00 8.00 4.2500 2.35919
SMBaSED 20 1.00 9.00 5.3500 2.81490
PERCHANG 20 5.00 8.00 6.5500 1.05006
PURDECIS 20 3.00 10.00 6.4000 1.81804
SMTYPE 20 .00 3.00 1.1500 1.30888
VISUALZ 20 .00 1.00 .6000 .50262
GAMIAPPS 20 .00 1.00 .6000 .50262
AGE 20 26.00 46.00 32.7000 6.57027
REFERRAL 20 2.00 9.00 6.3000 2.29645
Valid N (listwise) 20 The descriptive statistics were followed by the inferential statistics such as correlation analysis and regression analysis. The correlation analysis between the various variables considered for the descriptive statistics is presented in table 4.3.
Table 4.3: Correlations
USER TOM SMBaSED PERCHANG PURDECIS SMTYPE VISUALZ GAMIAPPS AGE REFERRAL
USER Pearson Correlation 1 -.805** .929** .147 .564** .901** .612** .000 -.078 .760**
Sig. (2-tailed) .000 .000 .538 .010 .000 .004 1.000 .744 .000
N 20 20 20 20 20 20 20 20 20 20
TOM Pearson Correlation -.805** 1 -.846** -.250 -.528* -.729** -.488* .133 .090 -.665**
Sig. (2-tailed) .000 .000 .288 .017 .000 .029 .576 .706 .001
N 20 20 20 20 20 20 20 20 20 20
SMBaSED Pearson Correlation .929** -.846** 1 .252 .671** .871** .513* -.007 -.264 .838**
Sig. (2-tailed) .000 .000 .284 .001 .000 .021 .975 .260 .000
N 20 20 20 20 20 20 20 20 20 20
PERCHANG Pearson Correlation .147 -.250 .252 1 .458* .281 -.259 -.359 .048 .212
Sig. (2-tailed) .538 .288 .284 .042 .229 .270 .120 .841 .370
N 20 20 20 20 20 20 20 20 20 20
PURDECIS Pearson Correlation .564** -.528* .671** .458* 1 .659** .415 -.046 .055 .676**
Sig. (2-tailed) .010 .017 .001 .042 .002 .069 .847 .819 .001
N 20 20 20 20 20 20 20 20 20 20
SMTYPE Pearson Correlation .901** -.729** .871** .281 .659** 1 .496* -.224 .067 .667**
Sig. (2-tailed) .000 .000 .000 .229 .002 .026 .342 .780 .001
N 20 20 20 20 20 20 20 20 20 20
VISUALZ Pearson Correlation .612** -.488* .513* -.259 .415 .496* 1 .375 -.070 .383
Sig. (2-tailed) .004 .029 .021 .270 .069 .026 .103 .769 .096
N 20 20 20 20 20 20 20 20 20 20
GAMIAPPS Pearson Correlation .000 .133 -.007 -.359 -.046 -.224 .375 1 -.277 .109
Sig. (2-tailed) 1.000 .576 .975 .120 .847 .342 .103 .237 .646
N 20 20 20 20 20 20 20 20 20 20
AGE Pearson Correlation -.078 .090 -.264 .048 .055 .067 -.070 -.277 1 -.175
Sig. (2-tailed) .744 .706 .260 .841 .819 .780 .769 .237 .460
N 20 20 20 20 20 20 20 20 20 20
REFERRAL Pearson Correlation .760** -.665** .838** .212 .676** .667** .383 .109 -.175 1
Sig. (2-tailed) .000 .001 .000 .370 .001 .001 .096 .646 .460 N 20 20 20 20 20 20 20 20 20 20
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
The correlation analysis reflected that the different predictors of brand image such as TOM (Top of the Mind Recall), Referral for the brands (REFERRAL), PURDECI (Purchase decision) were strongly correlated with history of social media accessed through mobile phones (USER), influence of SM on brand recall (SMBaSED), type of SM channel accessed (SMTYPE), Perception on appropriate visualization and projection of the brand (VISUALZ), need for gamification or apps to increase purchase (GAMIAPPS), age of the customers (AGE). The correlation analysis reflected that user of SM channels through mobile phones (USER) exhibited significant and positive correlation with SMBaSED, VISUALZ, SMTYPE, PURDECI, TOM (negatively coded as more positive), and REFERRAL (p<0.05). However, SM access through mobile phones did not influence the change of perception of the customers (PERCHANG) on “Brand Warburtons,” AGE, or GAMIAPPS (p>0.05).
Likewise, TOM was significantly correlated to SMBaSED, VISUALZ, SMTYPE, PURDECI, REFERRAL, and USER (p<0.05) but not by PERCHANG, AGE, or GAMIAPPS (p>0.05). On the other hand, SM-based recall significantly correlated with TOM, VISUALZ, SMTYPE, PURDECI, REFERRAL (p<0.05). Interestingly, PERCHANG was only and significantly correlated with PURDECI that signifies use of a FMCG brand influence its perception change across customers and not by promotional innovations and vice-versa. Likewise, the correlation analysis reflected that visualization of a popular FMCG brand is unrelated to influence the purchase decision of customers (p>0.05). Rather, the noise level through the social media and the quality of the product (that drives perception change) are the major influencers for the purchase decisions over a brand.
The correlation analysis further showed that the type of social media accessed is a key influencer for purchase decisions, referrals, and top of the mind recall. Once again, SM-type also did not influence PERCHANG on “Brand Warburtons” (p>0.05). The correlation analysis further reflected that VISUALZ certainly exhibited correlation with social media use and purchase decisions but did not relate with referrals (p>0.05). This finding further endorsed that visualization of a FMCG brand related to the F & B industry is influenced by its quality and utilitarian experiences and not through the social media. The referrals are primarily influenced by the noise level of such products through social media and based on purchase decisions. Nevertheless, the correlation analysis reflected that social networking-based mobile marketing could certainly influence purchase decisions over FMCG products that are related to the F & B industry. However, the holistic influence of the different variables in influencing brand image is presented through regression analysis. The regression analysis of brand image (based on TOM) on the different variables are presented in Tables 4.4a, 4.4b, and 4.4c.
Table 4.4a. Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .897a .804 .714 1.26209
a. Predictors: (Constant), AGE, SMTYPE, GAMIAPPS, VISUALZ, USER, SMBaSED
Model Sum of Squares df Mean Square F Sig.
1 Regression 85.043 6 14.174 8.898 .001b
Residual 20.707 13 1.593 Total 105.750 19 a. Dependent Variable: TOM
b. Predictors: (Constant), AGE, SMTYPE, GAMIAPPS, VISUALZ, USER, SMBaSED
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta 1 (Constant) 11.480 2.883 3.983 .002
USER -.339 2.044 -.074 -.166 .871
SMBaSED -1.087 .377 -1.297 -2.880 .013
SMTYPE 1.199 .684 .665 1.752 .103
VISUALZ -1.099 .859 -.234 -1.280 .223
GAMIAPPS 1.382 .776 .294 1.780 .098
AGE -.085 .061 -.238 -1.410 .182
a. Dependent Variable: TOM
The regression analysis reflected that TOM recall for the brand is significantly influenced as a holistic function of USER, SMBased, SMTYPE, VISUALZ, GAMIAPPS, and AGE (p=0.001). However, SMBaSED recall was an independent and significant influencer of TOM (p=0.013). Since the intercept for the regression was also significant (p=0.002), the study reflected that there could be other predictors for TOM such as perception change of the customers, referral status, and influence through other forms of advertisement. The regression analysis were further carried out with PERCHANG (as a marker of brand image ) with the different independent variables ( tables 4.5a, 4.5b, and 4.5c).
Table 4.5a Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .585a .342 .039 1.02957
a. Predictors: (Constant), AGE, SMTYPE, GAMIAPPS, VISUALZ, USER, SMBaSED
Model Sum of Squares df Mean Square F Sig.
1 Regression 7.170 6 1.195 1.127 .399b
Residual 13.780 13 1.060 Total 20.950 19 a. Dependent Variable: PERCHANG
b. Predictors: (Constant), AGE, SMTYPE, GAMIAPPS, VISUALZ, USER, SMBaSED
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta 1 (Constant) 6.372 3.621 1.760 .104
USER -1.323 1.725 -.646 -.767 .458
SMBaSED .187 .407 .501 .459 .654
SMTYPE .385 .641 .479 .600 .560
VISUALZ -.939 .769 -.449 -1.221 .245
GAMIAPPS -.060 .730 -.029 -.082 .936
AGE .013 .055 .078 .229 .823
TOM -.097 .234 -.219 -.417 .684
a. Dependent Variable: PERCHANG
The regression analysis reflected that PERCHANG over a FMCG product related to the food and beverage industry remain unaffected through its presence on the social media. This is because the significance level of the regression model was greater than 0.05 (p=0.399). Moreover, none of the independent variables significantly influenced perception change on “Brand Warburtons.” These findings once again endorsed that the perception on products related to the food and beverage industry are mainly influenced by their taste, quality, and promotion through advertisement channels other than the social networking sites. The next regression analysis reflected the influence of different independent variables related to social networking on the referral decisions of the consumers (Tables 4.6a, 4.6b, and 4.6c).
Table 4.6a. Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .878a .772 .638 1.38121
a. Predictors: (Constant), TOM, AGE, GAMIAPPS, VISUALZ, SMTYPE, USER, SMBaSED
Model Sum of Squares df Mean Square F Sig.
1 Regression 77.307 7 11.044 5.789 .004b
Residual 22.893 12 1.908 Total 100.200 19 a. Dependent Variable: REFERRAL
b. Predictors: (Constant), TOM, AGE, GAMIAPPS, VISUALZ, SMTYPE, USER, SMBaSED
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta 1 (Constant) -4.145 4.701 -.882 .395
USER -.213 2.239 -.048 -.095 .926
SMBaSED 1.352 .529 1.658 2.558 .025
SMTYPE -.908 .832 -.518 -1.091 .297
VISUALZ -.309 .998 -.068 -.310 .762
GAMIAPPS .354 .947 .077 .374 .715
AGE .101 .071 .288 1.414 .183
TOM .245 .304 .252 .808 .435
a. Dependent Variable: REFERRAL
The regression analysis reflected that referral decisions and advocacy for “Brand Warburtons” is significantly influenced as a holistic function of USER, SMBaSED, SMTYPE, VISUALZ, GAMIApPS, AGE, and TOM (p=0.004). Moreover, the regression analysis further highlighted SMBaSED recall independently influenced referral decisions for “Brand Warburtons.” Interestingly, there were no other variables apart from those considered in the regression analysis to have influenced referral and advocacy for “Brand Warburtons” because the intercept of the regression analysis was non-significant (p=0.395). Finally, PURDECIS as a function of brand image was regressed on the different independent variables (tables 4.7a, 4.7b, and 4.7c).
Table 4.7a: Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .898a .806 .632 1.10356
a. Predictors: (Constant), PERCHANG, AGE, USER, GAMIAPPS, VISUALZ, REFERRAL, TOM, SMTYPE, SMBaSED
Model Sum of Squares df Mean Square F Sig.
1 Regression 50.622 9 5.625 4.619 .013b
Residual 12.178 10 1.218 Total 62.800 19 a. Dependent Variable: PURDECIS
b. Predictors: (Constant), PERCHANG, AGE, USER, GAMIAPPS, VISUALZ, REFERRAL, TOM, SMTYPE, SMBaSED
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta 1 (Constant) -7.450 4.326 -1.722 .116
USER -4.116 1.833 -1.162 -2.246 .049
SMBaSED .863 .528 1.337 1.637 .133
SMTYPE .218 .707 .157 .308 .764
VISUALZ 1.946 .848 .538 2.295 .045
GAMIAPPS -.228 .762 -.063 -.299 .771
AGE .094 .062 .340 1.527 .158
TOM .265 .251 .344 1.057 .316
REFERRAL .274 .231 .346 1.188 .262
PERCHANG .623 .299 .360 2.081 .064
a. Dependent Variable: PURDECIS
The regression analysis reflected that purchase decisions on “Brand Warburtons” was significantly influenced as a holistic function of different variables related to social networking-based mobile marketing (p=0.013). Moreover, improved perception on visualization of a brand through the hand-held devices and its presence in SM was found to be independent predictors for purchase decision even for an F& B FMCG brand (p=0.045). These findings suggest that mobile marketers should not only increase noise levels of a brand through social networking but must be also sensitive regarding the appropriate projection or visual effect of the brand in mobile media. Perhaps, this is one the reasons why mobile marketers are focusing on improved visualization of a band to enhance its image by promoting it through different dimensions of mobile media such as Youtube channels apart from encouraging interaction over the brand through Facebook and Twitter. The findings of the present study were also analyzed based on their reliability and validity through the KMO and Bartlett’s test (table 4.8).
Table 4.8: KMO and Bartlett’s Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .632
Bartlett’s Test of Sphericity Approx. Chi-Square 157.924
Since the KMO measure was more than 0.6 (KMO= 0.632), it can be concluded that the sample type and size that was considered for the study was appropriate. On the other hand, the variables (both dependent and independent) that were considered for this study were also appropriate because the p-value for the Bartlett’s Test of Sphericity was less than 0.05 (p=0.000). Hence, the findings of the present study could be considered both reliable and reproducible. However, the study should have incorporated multiple FMCG products with individuals belonging to different demographic backgrounds to define the relation between social networking-based mobile marketing and brand image. Nevertheless, the study could be considered well-designed and pertinent based on the three important “P”s of marketing; product, place, and people. The study provided conclusive evidence regarding the mindset of consumers belonging to the United Kingdom on their perception and acceptability on social networking-based mobile marketing for F & B FMCG brands such as Warburtons.
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
Fast Moving Consumer Goods (FMCG) refer to those products that are sold quickly and at a relatively low cost. The major FMCG products that are common and popular across any nation include soft drinks, over-the-counter medications, processed food items, routine food products, and toiletries. The FMCG products are generally sold in bulk quantities with a short shelf-life. The present study showed that social networking based promotion might influence the brand image of different brands across various industry segments. However, its role in improving brand image in the F&B FMCG segment remains inconclusive. Nevertheless, if brand image is considered a function of favorable purchase decisions, referrals or advocacy, and top of the mind recall of the brand, then social networking-based mobile marketing improves brand image of F&B FMCG products. However, perception change on F&B FMCG products seems to be driven by other variables that could be taste, quality, and promotion through other advertisement channels or promotional offers. The study also reflected that appropriate visualization of a FMCG brand is a significant modulator of purchase decision. Hence, mobile marketers should not only increase noise levels of a brand through social networking but must be also sensitive regarding the appropriate projection or visual effect of the brand in mobile media. Nevertheless, the study did endorse the role of social networking based on mobile media in increasing the noise levels and visibility of F& B FMCG brands that is effective enough in influencing the purchase decisions on the same hand-held device.
Mobile marketers should try to address the cognitive, emotional, and behavioral needs of the customers who are targeted through the social media even for the FMCG brands. To recall, the proactive involvement of customers with a brand on social media can be considered as the cognitive, emotional, and behavioral investment of the consumer in the brand-consumer interactions. The more time a consumer spends on such interactions, the higher was the development of relationship investment and stronger brand relationship quality. Relationship investment helps consumers to derive more benefits and value additions from the respective brand that help to generate a sense of trust that might influence purchase decisions by overcoming risk aversion and uncertainty avoidance. The followers of social networking sites through two way communications generate a high relationship quality with the brand through interdependence and closeness.
Since FMCG products (especially the products belonging to the food and beverage industry) are low-cost attributes, the external and internal barriers across customers is lower than that for other retail brands. However, the fierce competition in FMCG segment should prompt mobile marketers to develop effective strategies to leverage brand image and purchase of the respective brands through the mobile media. In fact, these facts have been already recognized by the mobile marketers and they are primarily focusing on increasing the visibility and trustworthiness of the brand through mobile media. As a result, unidirectional communications or promotions through the SMS and MMS options are fast being replaced by social media-based promotion, social networking marketing, and launch of mobile apps. The mobile apps are designed to inspire the purchase of a brand through the same device.
Hence, mobile and smart phones provide an enormous opportunity to engage in multidimensional marketing, whereby; SMS and MMS-based promotions help to sensitize or raise the awareness of customers for a specific brand, the social networking and social media based promotions help to engage customers with each other as well as with the brand or their respective marketers to resolve their apprehensions or manipulating their decisions to complete or avoid a purchase through feedback and reviews, video-based promotions (primarily through the YouTube) help to enhance the visibility and appropriate projection of the brand that acts as a robust resource in reducing the external constraints of the customers, and app-based promotions that represent the final step in the purchase chain through the same device. On the other hand, other online or electronic media channels might either sensitize the customers to induce purchase through the hand-held devices and vice-versa. Hence, the success of mobile marketing will depend upon both multidimensional and multimodal promotional strategies related to the marketing and sales of the respective brand. The success of mobile marketing through multidimensional platforms is becoming well-established in the FMCG sector across different nations.
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(Raw data of the Study Participants: Primary data)
Part ID SM USER TOM WAR SM-RECALL PER-3YRS PUR-DECI Access SM VISUAL GAMI/APPS Age Referral
1 1 2 8 5 6 2 1 1 26 7
2 1 4 7 6 6 1 1 1 28 8
3 1 3 9 6 10 3 1 1 37 9
4 1 3 8 8 7 3 0 0 38 8
5 1 2 9 8 10 3 1 0 26 9
6 1 1 6 7 6 2 1 1 39 7
7 1 1 9 8 8 3 1 0 31 8
8 1 2 9 7 9 2 1 1 30 9
9 1 2 8 6 6 1 1 1 26 9
10 1 4 6 6 6 3 1 0 41 6
11 0 3 4 6 6 0 1 1 32 5
12 0 4 3 7 7 0 0 0 42 6
13 0 6 4 8 6 0 0 1 26 7
14 0 8 3 6 6 0 0 1 31 8
15 0 5 3 5 4 0 0 0 27 4
16 0 8 2 6 6 0 1 1 26 3
17 0 7 3 7 4 0 0 1 28 2
18 0 6 3 6 3 0 0 0 32 4
19 0 6 2 8 7 0 0 0 42 3
20 0 8 1 5 5 0 1 1 46 4
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