Marketing

Running head: HOW SOCIAL MEDIA HELPS IN BUSINESS GROWTH
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How Social Media Helps in Business Growth
Student’s Name:
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HOW SOCIAL MEDIA HELPS IN BUSINESS GROWTH
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How Social Media Helps in Business Growth
Social media platforms are increasingly becoming useful in providing customer service
on a real-time basis. Social media can create strategies for the business to ensure that the market
is utilized. Gunaranthe, Rui, & Seidman, (2018), examine the existence of and drivers of
differential treatment of customers on social media. Current literature suggests that differential
treatment has been used in most companies basing it on the expected business value of the
customers. In other words, the authors affirm what has been mentioned in the introduction that it
is vital for a business to identify the types of social platforms that can be used to save the
finances of the company. The impact of social media is that it generates business both from large
to small scale (Han & Kim, 2019). As mentioned in the introduction the literature review will
elaborate more on the influence of social media and how it leads to market expansion
According to Barczyk & Duncun (2011), social media also enhances the customer’s
experiences because they are given the leeway to access the business page to get more
information of the work and services of the business offers. Consequently, the influence of social
media impacts the customer with regards to their relative standing on social media. The
bystander effect is the impact of the presence of other users of social media. An excellent
example is the analysis of three million tweets of seven major U.S. airliners on Twitter during
September 2014 - May 2015. Gunaranthe, Rui, & Seidman, (2018), are of the view that, on the
one hand, organizations are likely to respond more quickly to customers who have a significant
social media presence and standing. This claim confirms the existence of social media influence
effect. On the other hand, companies are less likely to respond to complaints involving multiple
parties, thereby confirming the bystander effect.
HOW SOCIAL MEDIA HELPS IN BUSINESS GROWTH
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The main objective of any profitable organization is to create and retain customers. This
article provides insight and awareness to both the customers and the organization. The customers
will become more appreciative and responsible in their behavior while organizations will be able
to distinguish high-priority from low-priority customers based on the influence and presence on
social media. By targeting customers with more followers on social media, companies build their
reputation and are more likely to get good reviews. Good reviews will ensure a potential increase
in new customers. Similar to Culnan, McHugh & Zubillaga (2010), social media is a powerful
tool that shows the ongoing commitment through authenticity, transparency, and relationship.
Similarly, Shaw (2018) argues that 3.2 billion people are active on social media
platforms. As users continue to spend most of their time online, social media platforms become a
source for brand and product information. Organizations use online platforms for advertising
their brands, reaching millions of users worldwide. According to a We Are Social report, a
brand’s page on Facebook reaches 10.7% more users than its current followers, and 4.2% of
users on Facebook are likely to engage in a post. As a consequence, social media is increasingly
becoming a goldmine for businesses to portray their brand’s presence. Also, companies can
develop brand loyalty and increase their sales levels on social media platforms. According to
Shaw (2018), most consumers are likely to purchase a product through the influence of social
media.
According to a 2017 survey, 69% of 5700 marketers developed loyal fans through online
marketing. Also, 66% of consumers aged between 18 24 years were more loyal to brands they
have followed on social media and at the same time, 60% of users aged 25 34 years favor
companies they have followed (Shaw, 2018). The We Are Social 2018 report revealed that 17%
of internet users in the world make purchases online. A high percentage of buyers aged 18 34
HOW SOCIAL MEDIA HELPS IN BUSINESS GROWTH
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years purchased products through the influence of social media. A study showed that one out of
four new vehicle buyers in the U.S. used Twitter to make a purchasing decision (Shaw, 2018).
HOW SOCIAL MEDIA HELPS IN BUSINESS GROWTH
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Reference
Barczyk, C. C., & Duncan, D. G. (2011). Social networking media as a tool for teaching business
administration courses. International Journal of Humanities and Social Science, 1(17),
267-
276.https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&q=use+of+social+media
+not+propely+utilized+in+business&btnG=
Culnan, M. J., McHugh, P. J., & Zubillaga, J. I. (2010). How large US companies can use
Twitter and other social media to gain business value. MIS Quarterly Executive, 9(4).
Retrieved from https://www.semanticscholar.org/paper/How-Large-U.S.-Companies-
Can-Use-Twitter-and-Other-Culnan-
McHugh/a59f46c2ee905fabc79885189c1c6781def6e45b
Gunarathne, P., Rui, H., & Seidmann, A. (2018). When social media delivers customer service:
Differential customer treatment in the airline industry. MIS Quarterly, 42(2), 489-520.
Han, B., & Kim, M. (2019). Hofstede’s Collectivistic Values and Sustainable Growth of Online
Group Buying. Sustainability, 11(4), 1016. doi:10.3390/su11041016
Shaw, A. (2018, May 11). How Social Media Can Move Your Business, Forward. Retrieved
June 29, 2019, from
https://www.forbes.com/sites/forbescommunicationscouncil/2018/05/11/how-social-
media-can-move-your-business-forward/#2c6e85d24cf2

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