RELATED RESEARCHES
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The research of Nancy Atkinson about “Social Media Use in the United States: Implications for Health Communication” in Journal of Medical Internet Research
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Rehmani and Khan's 2011 research in the International Journal of Advanced Computer Science and Application explored how e-media influences customer purchase intentions, specifically focusing on social media The study posited that both electronic word of mouth and seller-generated online information are key components of social media, and it hypothesized that these elements positively affect customer purchase intentions.
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AIMS AND OBJECTIVE OF THE RESEARCH
This study aims to explore the impact of social media on customer relationships within the e-commerce landscape It seeks to determine the extent to which social media usage influences these relationships, highlighting its significance for researchers and e-commerce businesses striving to maintain a competitive edge.
SUBJECT AND SCOPE OF THE STUDY
Subject of the study: How social media usage related to customer relationship from e-commerce model perspective In Ho Chi Minh city, Vietnam
Subject of the survey: Customers in Ho Chi Minh city, Vietnam
Scope of the study: Popular social media platforms in Ho Chi Minh city, Vietnam Time of the research: Carry out from 09/2018 to 11/2018.
RESEARCH METHOD
The research involved both qualitative and quantitative methods, beginning with the collection of qualitative data, followed by the administration of quantitative surveys to approximately 223 participants These surveys focused on the influence of social media on e-commerce and its impact on customer relationships, without manipulating any variables To gather this information, survey questionnaires were distributed to individuals in Ho Chi Minh City The collected data was then processed using SPSS version 20, following specific analytical steps.
STRUCTURE OF THE STUDY
This thesis is presented in five main chapters
Chapter 1 – Introduction has provided an overview of the thesis In this chapter, there are 6 main contents, including: background, related researches, aims/objective of the research, subject and scope of study, research method and structure of the study Chapter 2 – Literature review focused on introducing two concepts of social media and e-commerce at the beginning Then this chapter will look deeper into the business model area and the e-business model ontology which form the theoretical framework of the current study
Chapter 3 – Methodology provided details about the methodological research framework for the current study
Chapter 4 – Result and finding was presented which collected through the survey Chapter 5 – Conclusion and Future Researches discussed the key findings and highlights important issues relevant to the relationship between the use of social media and customer relationship This chapter also identified the limitations of the study and recommendations for future research direction
This chapter offers a comprehensive overview of the current study, detailing its research background, context, and structure It highlights the key issues that prompted the study and clarifies its primary purpose The subsequent chapter will explore theoretical perspectives on social media, customer relationships, and the e-commerce model.
SOCIAL MEDIA
Social media lacks a universally accepted definition, but Mark Miller describes it as any platform featuring user-generated content Key forms include blogs and microblogs (e.g., blogger.com, twitter.com), message boards and forums (e.g., healthboards.com), social networks (e.g., facebook.com, zalo), wikis (e.g., wikipedia.org), and media sharing sites (e.g., youtube.com, instagram) These platforms empower users to create, upload, and comment on content, with most sites offering free access and allowing anonymous participation While registration is often necessary for content creation, once published, the content is generally accessible to all users.
Social media, often synonymous with Web 2.0, represents a collection of interactive, user-controlled online applications that enhance user experiences and empower them in business and social processes (Constantinides & Fountain, 2007) These applications facilitate the creation of informal networks, enabling efficient sharing and refining of information, thereby shifting market power dynamics to favor consumers over companies While SpannerWorks (2007) notes that Web 2.0 encompasses a wider range of online applications, social media specifically focuses on the social interactions within this framework Bruns and Bahnisch (2009) further clarify that social media consists of websites leveraging Web 2.0 technologies to foster social interaction, community building, and collaborative projects.
Social media, often known as consumer-generated media (CGM), highlights the influential role of consumers in sharing their experiences CGM consists of content created by consumers that provides detailed, non-commercial insights through word-of-mouth, unrestricted by access barriers (Yoo & Gretzel, 2011) Blackshaw and Nazzaro (2004) define consumer-generated media as diverse online information sources initiated and circulated by consumers aiming to educate one another about products, brands, services, personalities, and various issues.
According to Shao (2009), individuals engage in three primary activities on social media: consuming, participating, and producing content Consuming information is the foremost behavior, as users primarily seek out content displayed on these platforms Additionally, social media encourages interaction, allowing individuals to participate and connect with other users Furthermore, users often create their own content, such as uploading photos or videos Given the vastness of social media and the absence of a specific definition, this study will refer to it as consumer-generated media (CGM).
Social media, as summarized by Mayfield (2008), is defined by key characteristics such as participation, openness, conversation, community, and connectedness It empowers individuals to create content, blurring the distinction between media and user Most platforms promote openness, encouraging feedback and information sharing with minimal barriers Unlike traditional media's one-way communication, social media facilitates two-way interactions, fostering conversations among users Additionally, it enables the rapid formation of communities centered around shared interests, while also highlighting the interconnectedness of various social media forms.
2.1.1 The form of social media
Social media can be viewed as a diverse array of new online media platforms, encompassing various forms of word-of-mouth communication (Mayfield, 2008; Huffaker, 2006) In 2008, popular social media formats included blogs, forums, content communities, virtual worlds, wikis, podcasts, social networks, and microblogs (Karjaluoto, 2008; Mayfield, 2008) This landscape of social media continues to evolve, with new forms constantly emerging.
Since 2010, various new forms of social media have emerged, including media sharing sites, social bookmarking, voting platforms, and review sites (Zarrella, 2010) Today, the landscape has expanded further to include news updates, photo and video sharing, music and radio streaming, live streaming, and gaming.
Li and Bernoff (2008) categorize social media into six key types based on user activities: creating information (e.g., blogs), connecting with others (e.g., social networking sites), collaborating (e.g., wikis), reacting (e.g., forums), organizing (e.g., tagging), and consuming content (e.g., RSS feeds) In 2010, Mckee introduced the "Social Trinity Model," highlighting three primary purposes of popular social media applications: networking, conversation, and community engagement.
Figure 1 Social Trinity Model (MCKEE 2010, P.183)
To summarize, there are seven common social media forms based on the different classification about social media from different authors:
1 Social Networks Sites (SNS): The websites where people can build their personal profiles connect and share information with their friends (Mayfield, 2008) The most popular social network websites is Facebook
2 Blogs: The websites where individuals or groups can post information and enable readers to make comments (Karjaluoto, 2008)
3 Wikis: Wikis allows people to add and edit information and create an online database (Mayfield, 2008) Such like Wikipedia
4 Podcasts: The websites, which offer audios and videos subscription services to users (Mayfield, 2008) iTunes is the most popular podcast platform
5 Forums: Forums are the online discussion places where users create and discuss specific topics (Mayfield, 2008)
6 Content communities: The websites, where users create and share particular types of content (Mayfield, 2008) For example: Youtube, which is a famous video sharing website
7 Microblog: It is a small sized blog, which interacts with social networking sites (Mayfield, 2008) Users can exchange short sentences, images or video links with others (Kaplan & Haenlein, 2011) E.g Twitter
E-COMMERCE
E-commerce developed rapidly in recent years and will continue growing in the future (Karakaya & Shea, 2008) But until now, there still has not been a single definition of e-commerce According to the Organisation for Co-operation and
E-commerce, as defined by the OECD, involves using information technology and electronic processing to facilitate commerce activities Beynon-Davies (2004) emphasizes that it encompasses all trading activities through information and communication technologies (ICT) during pre-sale, sale execution, sale settlement, and after-sale phases Song and Dong (2010) expand on this by stating that e-commerce includes the transaction of information, products, and services Furthermore, Turban et al (2002) highlight that e-commerce extends beyond mere online transactions to include customer service and partner collaboration Lawrence (2000) adds that e-commerce consists of networks accessible to everyone, encompassing both internal and external company relationships.
Companies are motivated to adopt e-commerce for various reasons, primarily focusing on enhancing customer relationships both in the short and long term Research by Karakaya and Shea (2008) identifies nine motivators, categorizing them into short-term productivity and long-term competitiveness In the short term, e-commerce significantly improves customer service, while in the long term, it helps companies meet the growing online shopping demands of consumers, ultimately leading to sustained benefits.
Long-term customer relationships are recognized as a vital business asset, according to Rajaobelina and Bergeron (2009) In response, many e-commerce companies are increasingly prioritizing people as a key element of their operations, shifting towards a more people-oriented approach (Song & Dong, 2010).
Effective customer relationship management (CRM) is essential for e-commerce, as it parallels traditional commerce in facilitating transactions According to Ma et al (2009), CRM is a crucial element of e-commerce, requiring companies to identify target customer segments and implement suitable strategies to attract and retain customers (Cao & Ye, 2007) Singh et al (2008) emphasize the active role customers play in building relationships with companies Lang et al (2002) describe CRM as a business philosophy that integrates various organizational facets To boost customer acquisition and satisfaction, businesses must adopt a customer-centric model that aligns Sales, Marketing, and Services departments.
(2008) claimed that customer relationship management (CRM) is “management of mutually beneficial relationships from the seller‟s perspective” While Rigby et al
(2002) describes that customer relationship management puts customer strategies into business process, which improves customer loyalty
Customer relationship management (CRM) encompasses various interpretations across organizations, but it can be distilled into two primary categories: CRM strategy and CRM software From a strategic perspective, CRM is a customer-centric approach designed to attract new clients while retaining existing ones (Wang & Feng, 2010) Additionally, the Hurwitz Group highlights that CRM plays a crucial role in enhancing business processes, including sales, marketing, and customer service, all of which are interconnected with customer interactions.
Customer relationship management (CRM) is a software system that utilizes information and communication technologies (ICT) to assist companies in managing their customer relationships It serves as a vital tool for organizations to effectively handle customer needs, access information, and track purchased products.
In this study particularly refer customer relationship management as a strategy
Building and solidifying customer relationships is essential for companies, and understanding this concept from a business perspective is beneficial for enhancing customer engagement.
BUSINESS MODEL
Osterwalder and Pigneur (2002) define a business model as a framework for understanding the value creation process within a business system Various definitions exist in the academic literature, reflecting the diverse perspectives of different authors Osterwalder (2005) characterizes a business model as a conceptual tool that encompasses a set of objects, concepts, and their interrelations to articulate a firm's business logic He categorizes business model definitions into two levels: the conceptual level, which encompasses all businesses with shared traits, and the instance level, which focuses on specific business models, such as those of individual companies This study adopts the instance level perspective, concentrating on the business models of companies within the e-commerce sector.
E-commerce business model is “a business model that aims to use and leverage the unique qualities of the Internet and the World Wide Web” (Laudon & Traver, 2002; Timmers, 1998) Nowadays, many e-commerce models emerged along with the Internet and e-commerce application development Business-to-Business (B2B), Business to Customer (B2C), Customer to Customer (C2C), Business to Government (B2G) are the most familiar e-commerce model categories, which are classified by the different participant roles in the e-commerce market (Peng & Zhang, 2010) Besides this category, there are many other types of e-commerce models For instance, Rappa
In 2001, various e-commerce models were classified into nine types, including broker, advertisement, information inter-mediator, distributor, manufacturer, associated, social community, subscription, and utility models Additionally, Weill and Vitale (2001) identified eight business model components: content provider, middleman, sharing infrastructure, value web integrator, virtual network community, and enterprise/government integration Within the online marketplace, two prominent e-business models are "pure online," exemplified by companies like Amazon that exclusively sell products online, and "brick-and-click," represented by firms such as Wal-Mart that operate both online and offline, allowing customers to shop in-store or online.
Most research focuses on various e-commerce models, with limited exploration of the ontology behind these models According to Osterwalder (2004), e-commerce model ontology serves as a formal tool that establishes a shared understanding of the model's components and their interconnections, thereby clarifying the business logic of a company Key ontologies in this area include business model ontology, e3 value ontology, and Resource-Event-Agent (REA) ontology, as discussed by Geerts and McCarthy (2002).
Service Ontology, as discussed by Akkermans et al (2004), includes various ontologies relevant to e-commerce models Osterwalder highlights that business model ontology provides significant benefits, particularly in areas related to offerings and customer interactions Consequently, this study adopts the e-commerce model ontology as its theoretical framework to explore the impacts of social media.
The E-business model ontology serves as a formal framework that delineates the key components and relationships within a business model, effectively illustrating the company's business logic This conceptual tool identifies essential elements of the e-commerce model and elucidates their interconnections At its core, the ontology comprises four fundamental dimensions—product innovation, infrastructure management, customer relationships, and financials—forming the foundation of the e-commerce model These elements are further detailed in subsequent dimensions, enhancing the complexity and depth of the ontology.
Figure 2 E-Commerce Model Frameworks (Osterwalder & Pigneur, 2002)
1) Product innovation represents the products or services that a company provides to its target customer, which demonstrates its differences compared to its competitors The innovation of product results from the aspects of value proposition, target customer segments and the capabilities of the firm
2) Customer relationship covers the channels through which a company contacts its customers and does business in the market A company can improve its customer relationship through the use of an information strategy, by adopting multiple communication channels, and by understanding the importance of trust and loyalty in the online business environment
3) Infrastructure management is the element that is used to transfer the value proposition It supports the firm is activities that produce and deliver value And it also associates the configuration, in-house resources and assets and the partner network
4) Successful financial performance is the goal of every company The financial aspect consists of a revenue model, a cost structure and a profit model.
OSTERWALDER & PIGNEUR MODEL
According to the e-business model ontology, the customer relationship is related to the following three aspects (Osterwalder & Pigneur, 2002):
1) Information strategy: Information strategies are ways through which a company can quickly gather customer information in order to gain a deeper understanding of its customers‟ behaviors Companies usually adopt some technologies in their information strategies, such as data mining, data warehousing and business intelligence
2) Feel and Serve: Feel and serve refers to the distribution channels of company, which presents the ways a company interacts with its customer Unlike the information strategy, feel and serve is the channel strategy that outlines how company delivers its value proposition to its target customer It could be an indirect or direct communication channel
3) Trust and loyalty: Trust and loyalty are the vital factors in the transactions between company and customer, especially in the online business The customer loyalty results from the trust of customer and customer satisfaction It is easier to keep the old customer than to attract new customers Customer loyalty requires a positive and dynamic customer relationship
The interplay between information strategy, customer feelings, and service quality is crucial for business success An effective information strategy enhances customer experience and service delivery, while positive feelings and quality service foster trust and loyalty among customers This trust and loyalty, in turn, empower customers to engage more deeply with the brand Additionally, the insights gained from customer feelings and service interactions provide valuable information that companies can leverage to refine their strategies.
E-Business Model was the main approach in order to understand the main point But this study only focused on the customer relationship aspect of this model, which describes it very clearly Since the objective of this study is to find the impacts of social media on the customer relationship, therefore, the study chose customer relationship part as the foundation of the research And the connection between customer relationship and its three aspects has been proved already, so in this study will not mention the relationship between its three aspects in the original model, which is the customer relationship aspect of E-Business Model The Model A is shown below (Figure 3)
Figure 3 Model A (Osterwalder & Pigneur, 2002, Modified)
The model categorizes the effects of social media into four key aspects, drawing on a comprehensive literature review Initially, it examines how social media influences the three elements of customer relationships, followed by a theoretical exploration of the direct link between social media usage and customer relationship dynamics.
Information overload on the Internet necessitates effective information strategies for e-commerce companies (Singh et al., 2008) The rise of social media has transformed online communication, allowing users to engage with businesses and access product-related information freely through various channels (Wang & Tong, 2010) Customers prefer expressing their opinions via social media, which offers detailed, non-commercial insights generated by fellow consumers (Yoo & Gretzel, 2011) Social networking sites (SNS) not only host vast amounts of user-generated content but also facilitate product comparisons and feedback collection, providing companies with valuable insights into customer opinions (Singh et al., 2008) This effective feedback mechanism can drive product development and innovation (Osterwalder & Pigneur, 2002), as SNS data can be leveraged for extensive data mining (Dwyer et al., 2007).
In 2006, it was suggested that companies can improve their understanding of customers by effectively utilizing online communities Consequently, it is crucial for businesses to take into account the influence of social media when developing their information strategies.
2.5.2 Feel And Serve (Distribution Channels)
In recent years, the e-commerce market has shifted from a seller's monopoly to a buyer's monopoly, emphasizing the importance of communication among buyers as a key driver of purchasing activity (Wang & Tong, 2010; Guo et al., 2011) The nature of online transactions creates a disconnect between customers and sellers, as interactions occur through computers and the Internet Social media has become integral to people's lives, serving as vital communication platforms that connect individuals globally, with Facebook and blogs being prominent examples (Tapscott, 2008; Singh et al., 2008) These platforms allow companies to engage with customers, leveraging characteristics such as openness and connectedness to expand distribution channels Furthermore, globalization enhances the reach of businesses, enabling them to share product information across various social media formats, which aids in managing customer relations and delivering essential information effectively (Singh et al., 2008).
In the high-risk landscape of the Internet, trust plays a vital role in e-commerce transactions, making it essential for successful online interactions Studies by Wang and Tong (2010) highlight the significance of trust in mitigating uncertainties, while Dwyer et al (2007) and Coppola et al emphasize its importance for fostering effective online communication.
Building trust is essential for forming new relationships in areas such as security, confidentiality, integrity, and non-repudiation, particularly in online environments However, there is a common misconception that equates online trust solely with basic security requirements.
In 2006, it was highlighted that essential security requirements for online interactions involve authenticating users and websites while ensuring confidentiality and validity These technical aspects form a crucial foundation for online transactions However, building business trust also requires addressing non-technical issues that arise between online partners Establishing sufficient trust is vital for any relationship to achieve the desired business value.
Trust in the online environment is crucial due to the complexity of interactions and the potential for insincere behavior (Gefen et al., 2003) Building customer loyalty requires emotional and transactional efforts (Osterwalder & Pigneur, 2002) Social media acts as an extension of word-of-mouth, significantly impacting brand building (Kotler & Pfoertsch, 2006) Unlike traditional media, social media allows for personalized brand promotion, enhancing individual connections (Christodoulides, 2008) Users often establish their social networks based on real-life friendships, which can lead to higher customer satisfaction and trust (Jensen, 2010; Swamynathan et al., 2008) Meeting partners face-to-face before online collaboration strengthens relationships and trust (Paterson, 2009; Zheng et al., 2002) Trust is notably higher when partners interact in person prior to online engagements (Zheng et al., 2002; Moore et al., 1999; Rocco, 1998) Additionally, consumers tend to trust purchase recommendations from friends more than other sources (Guo et al., 2011).
Riegelsberger and Sasse (2002) suggest that utilizing interactive and expressive channels enhances trust by diminishing corporate control Paterson (2009) highlights that online communities foster customer loyalty and satisfaction, while Hagel and Armstrong (1997) emphasize the role of virtual communities in building trust within e-commerce The high interactivity of social media allows for the integration of social features into e-commerce websites, connecting users with friends and improving their ability to evaluate information, ultimately strengthening trust and loyalty between companies and customers.
The rise of social media has significantly transformed communication methods, facilitating stronger relationships between organizations and the public (Wright, 1998, 2001) According to Stafford and Canary (1991), effective relationship maintenance strategies include positivity, openness, assurance, social networks, and task sharing Singh et al (2008) argue that social media enhances customer relationships by enabling more interactive conversations between sellers and customers in an online environment This technology allows customers to engage more easily in the business process while companies work to capture their attention Social media also provides opportunities for businesses to personalize each stage of the customer buying cycle, positively influencing the shopping experience and strengthening customer connections (Osterwalder & Pigneur, 2002) Establishing various communication channels, such as online exchange communities, is recommended for effective customer relationship management.
CHOICE OF METHODOLOGY
The primary aim of this study was to explore the relationship between social media and customer relationships Following the guidelines of Saunders et al (2009), key factors such as research questions, study purpose, time constraints, researcher expertise, and available resources were considered in selecting an appropriate research strategy A survey was identified as the most suitable method, commonly employed to investigate specific relationships between variables (Saunders et al., 2009; Glock).
In our research, we aim to gather data from customers who have utilized social media for online shopping The survey research method is particularly effective for evaluating this phenomenon across a wide range of respondents, as it allows us to obtain numeric values quickly and efficiently (Pinsonneault & Kraemer, 1991) Additionally, surveys can be replicated in future studies to validate findings by posing the same questions to different populations (Oates, 2006) Given our limited research timeframe and previous experience with surveys, we have chosen this method as our primary research strategy.
In order to know the relationship between social media and customer relationship, this study adopted questionnaire as our data collection technique
While multiple data collection techniques can enhance the reliability of findings (Saunders et al., 2009), this study is limited to a single method due to time constraints The questionnaire, a widely used data collection tool that prompts respondents to answer the same set of pre-designed questions (deVaus, 2002), is particularly effective for descriptive and explanatory research (Saunders et al., 2009) Therefore, this research employs the questionnaire approach to gather data from participants.
In Ho Chi Minh City, Vietnam, I am reaching out to my network to encourage participation in a brief questionnaire, which is limited to three A4 sheets Your responses will significantly enhance the overall response rate and contribute valuable insights.
RESEARCH APPROACH
This article discusses two primary research approaches: inductive and deductive The inductive approach focuses on formulating theories based on data, while the deductive approach aims to apply existing theories to analyze gathered data (Saunders, 2009) In this study, a deductive approach is utilized to explore the relationship between social media and customer relationships, along with its components from the customers' perspective Chapter 3 outlines the research framework, and Chapter 4 presents the primary data collected through a questionnaire.
RESEARCH STRATEGY
Data collection for research can be categorized into two types: secondary data and primary data Secondary data refers to information that has already been published or gathered for previous purposes, such as research papers or printed materials In contrast, primary data is specifically collected for a particular study and can be obtained through methods like interviews, observations, experiments, and questionnaires (Gilbert A Churchill, 2009, p 142).
In research, the primary focus is on gathering and analyzing primary data through questionnaires and respondents to assess the impact of social media on customer relationships This data collection is designed to effectively address the research objectives and provide clear answers to the research questions.
SAMPLE
This research aims to explore the relationship between social media and customer relationships, focusing on customer perspectives The study targets individuals with experience in both online shopping and social media, specifically within Ho Chi Minh City, Vietnam Due to time and resource constraints, a specific population of 223 respondents was selected to generalize the findings The questionnaire was primarily distributed to gather relevant data.
Ho Chi Minh city, Vietnam, but the major reliance was on the distribution through email and through personal contacts Initially total 223 people were approached to get response.
QUESTIONNAIRE FORMAT
This questionnaire aims to gather data on customer opinions regarding the effects of social media on customer relationships in e-commerce It was distributed to 223 educated Vietnamese individuals who are proficient in English and are regular or experienced Internet users The questionnaire was sent using three methods: emails, an online link via Google Docs, and hand delivery Respondents were asked to return the completed questionnaire by emailing it back, submitting it through the provided Google Docs link, or providing a hard copy to the researcher.
The research model consists of five key elements: social media, information strategy, feel and serve, trust and loyalty, and customer relationship, along with four hypotheses that propose a positive correlation between social media and these elements Consequently, the survey questions must effectively encompass all five elements to gather relevant variables.
The design of the questionnaire incorporated previously tested questions and adhered to established guidelines (Converse & Presser, 1986; Dillman, 1978; Fox et al., 1988) A thorough review of existing literature and similar questionnaires informed the question selection To enhance the respondents' experience, all questions were crafted as closed and concise (Saunders, 2009), with closed questions defined as those having pre-set answers (Oates, 2006) To ensure clarity and eliminate ambiguity, I initially sought feedback from friends who completed the questionnaire Their suggestions led to multiple revisions, resulting in the final version of the questionnaire.
The questionnaire is divided into six sections, with the initial section focusing on general demographic information about respondents, including age, gender, and income This data will be utilized to characterize the sample and analyze the distribution of results.
The study targeted individuals with experience in both online shopping and social media, beginning with the question, "Did you shop online before?" followed by a selection of used social media platforms Respondents indicated their answers by checking boxes in the general background and social media sections Subsequent questions assessed four key dependent elements: Information Strategy, Feel and Serve, Trust and Loyalty, and Customer Relationship, as outlined in the research model A 5-point Likert scale was employed to gauge respondents' levels of agreement, where 1 signifies strong disagreement, 2 indicates disagreement, 3 represents a neutral stance, 4 denotes agreement, and 5 reflects strong agreement.
In the following five sections describe how I measured the five components of the research model The summarized survey questions were showed in Table 1
The study employed a questionnaire consisting of two multiple-choice questions to assess social media usage The first question focused on identifying the types of social media platforms utilized, while the second aimed to determine the reasons behind individuals' engagement with these platforms.
To evaluate the effectiveness of the information strategy, a questionnaire featuring three key questions was developed, drawing on insights from a comprehensive literature review This review emphasized various methods of information generation through social media, providing a solid foundation for the argument-based questions included in the survey.
The Measure of Feel and Serve encompasses three key elements: product awareness, emotional connection, and the quality of customer service These components collectively contribute to the overall customer experience and satisfaction.
Measure of Trust and Loyalty: The number of items in this construct is the same as above constructs
The Measure of Customer Relationship encompasses three key items, with the first and third questions directly assessing respondents' views on the relationship between social media users and e-commerce companies Additionally, the second question focuses on attracting new customers, a vital objective of effective customer relationship management (Wang & Feng, 2010).
Gender To get the general background information of the respondents and later this information could contribute to the gender distribution and further analysis the results distribution
Age Income Did you shop online before?
Which social media do you use? (Multiple Choice)
To get the information of whether the respondent uses social media, as well as the amount and types.
Why do you use social media? (Multiple Choice)
To know the using purpose of social media and further analysis its impacts on the type choice
IS1: I am more likely to share my online shopping experience with others via social media
To measure the information generated way through experience sharing on the social media
Social media significantly influences information generation, as individuals are more inclined to recommend a product, service, or company after becoming a fan or follower on platforms like Facebook and Instagram.
IS3: I like to participate in product communities‟ discussions
To measure the role of social media in the information consuming and generation.
FS1: Social media is the main resource, which made me aware about the product
To measure the impacts of social media on the product awareness
FS2: My feeling about this product increase since I become its fan/ follower
To measure the impacts of social media on the customer‟s feeling of product.
FS3: I believe the quality of customer services is higher when company embrace social media into its business
To measure the impacts of social media on the feeling of customer service
TL1: I trust the information shared with me by people I know through social media channels
To measure the information trust issue on the social media.
TL2: E-commerce companies who are well known in social media are credible
To measure the social media‟s impacts on the reputation of e- commerce company
TL3: I feel a sense of loyalty with companies I know via social media using
To measure social media‟s influences on the loyalty aspect.
CR1: I have a more effective relationship with e- commerce company because of the use of social media technologies
To measure the impacts of social media use on the customer relationship
CR2: I have been persuade to buy the product by the information which I got from various social media forms
To measure the impacts of social media usage for attracting customers
CR3: I am pleased to establish relationship with my interested e-commerce company through use of social media
To measure the social media‟s impacts on the customer relationship building
This chapter outlines the research design, methods, and analysis employed in the current study, focusing on how social media influences customer relationships within an e-commerce context The chosen research design effectively addresses the central questions and justifies the use of both quantitative and qualitative approaches The following chapter will present the findings from the quantitative study.
DEMOGRAPHIC CHARACTERISTICS
The following section presented the characteristics of the respondents through three aspects: gender, age and income
The following three pie charts (Figure 4, Figure 5 and Figure 6) show the gender, age and income distribution of the 223 respondents
The gender distribution chart reveals a nearly equal representation of males and females in the sample, with females comprising 52.9% and males 47.1% This indicates that there is minimal difference in the interest of consumers in online shopping and the e-commerce market across genders.
By behavior and common habits, women are more interested in using shopping than men
Age is divided into many age groups, including: 13 to 17 years old (0), 18 to 24 years old (1), 25 to 34 years old (2), 35 to 44 years old (3) and over 45 years old (4)
The mean age of observation was mean (mean) = 1.78 years, relative to the customer age of observation; Median (median) = 1.00; The most common age (mode)
The data exhibits a skewness of 0.806, indicating a slight asymmetry in the distribution With the mean and median being approximately equal, and the slope ranging from -1 to +1, this distribution is classified as normal Overall, our data aligns perfectly with these statistical characteristics.
The income of the participants is divided into several groups: Below 5 million
(0), 5 to 10 million (1), 10 to 18 million (2), over 18 million (3)
The average income observed is 1.30, aligning closely with the customer age data The median income is 1.00, while the most frequently occurring income (mode) is also 1, resulting in a skewness of 0.311 This distribution indicates that the mean and median are nearly equal, with a slope ranging from -1 to +1, suggesting a normal distribution Overall, our data demonstrates a perfect match.
MODEL DESCRIPTION
The following section displayed and analyzed the results of our research model The study used frequency distribution, as well as the measurements of mean and standard deviation to describe
The survey on social media usage revealed that Facebook is the most popular platform among respondents, with an impressive 97.8% participation rate Following Facebook, YouTube and Instagram ranked second and third, with 75.8% and 68.2% of users, respectively Zalo also emerged as a notable platform, utilized by 63.7% of participants Additionally, over 12% of respondents reported using Pinterest, Twitter, and Tumblr, while only about 2% mentioned platforms like Reddit and Steam.
Figure 8 Social Media Using Purpose
Figure 8 shows the reasons why respondents use social media in their daily life
A recent survey reveals that 90.1% of participants utilize social media to stay connected with family and friends, while 75.8% use it for entertainment purposes such as discovering and sharing music and books Notably, the study highlights the significance of social media in the e-commerce sector, with 65.9% of respondents seeking information and sharing feedback about brands and products, and 55.2% using it for professional and business networking These findings underscore the crucial role social media plays in facilitating business engagement and content generation within the commercial landscape.
As previous mentioned in the literature review, the model A (Osterwalder &
Pigneur, 2002, Modified) which shown in figure 3, divided social media impacts into four aspects which are Information Strategy, Feel and Serve, Trust and Loyalty, Customer Relationship
Table 2 Statistical description of Information Strategy
Items (Questions) Mean Standard Deviation
IS1: I am more likely to share my online shopping experience with others via social media
IS2: I am more likely to recommend the product, service or company since I becoming a fan/ follower of it (i.e.Facebook, Twitter)
IS3: I like to participate in product communities‟ discussions
The Information Strategy (IS) comprises three key components, as illustrated in Table 2, which presents the mean values and standard deviations for each item The first two items have mean values nearing 4, indicating a general consensus of agreement among respondents In contrast, the third item (IS3) has a mean value of 3.2018, suggesting a neutral attitude among participants regarding this aspect of the Information Strategy.
Figure 9 Respondents distribution of Information Strategy
Figure 9 illustrates the distribution of responses on a 5-point Likert scale regarding the information strategy construct Nearly 50% of respondents agree with the three main arguments, while 30 to 40% maintain a neutral stance Notably, the third statement, "I like to participate in product communities' discussions," sees a predominant neutral attitude among respondents, surpassing those who agree.
Table 3 Statistical descriptions of Feel and Serve
Items ( Questions) Mean Standard Deviation
FS1: Social media is the main resource, which made me aware about the product
FS2: My feeling about this product increase 3.4888 97195
Strongly Disagree Disagree Neutral Agree Strongly Agree
IS1IS2IS3 since I become its fan/ follower
FS3: I believe the quality of customer services is higher when company embrace social media into its business
Table 3 presents the statistical analysis of Feel and Serve, revealing that the mean values for three items are nearly 4, indicating an overall agreement among respondents, while FS2 stands out with a mean closer to 3, suggesting a slightly less favorable attitude.
Figure 10 Respondents distribution of Feel and Serve
According to Figure 10, nearly 50% of respondents agree with three questionnaire statements, with approximately 25% strongly agreeing with statements one and three This indicates that respondents believe the quality of customer service will improve if a company utilizes social media applications.
Strongly Disagree Disagree Neutral Agree Strongly Agree
Table 4 Statistical descriptions of Trust and Loyalty
TL1: I trust the information shared with me by people I know through social media channels
TL2: E-commerce companies who are well known in social media are credible
L3: I feel a sense of loyalty with companies I know to use social media
The descriptive statistics in Table 4 indicate that respondents generally exhibit a neutral attitude toward the survey questions However, the statement TL1, which asserts, “I trust the information shared with me by people I know through social media channels,” received a mean score of 3.7220, suggesting a tendency toward trust that is closer to agreement.
Figure 11 Respondents distribution of Trust and Loyalty
Figure 11 illustrates that a significant majority of respondents express Neutral or Agree sentiments regarding trust and loyalty Notably, approximately 35% of participants Agree, while nearly 30% Strongly Agree with the initial statement.
Table 5 Statistical descriptions of Customer Relationship
Items (Questions) Mean Standard Deviation
CR1: I have a more effective relationship with e- commerce company because of the use of social media technologies
CR2: I have been persuade to buy the product by the information which I got from various social media forms
Strongly Disagree Disagree Neutral Agree Strongly Agree
CR3: I am pleased to establish relationship with my interested e- commerce company through use of social media
The final descriptive statistics table reveals that the mean values for CR2 and CR3 are similar, both averaging around 4, indicating an Agree attitude In contrast, CR3 has a mean value of 3.4619, which is closer to 3, reflecting a Neutral attitude.
Figure 12 Respondents distribution of Customer Relationship
According to Figure 12, a majority of respondents believe that social media applications enhance their relationships with e-commerce companies, with many expressing satisfaction in using these platforms for engagement Only around 5% of participants disagree with this sentiment across all statements Notably, approximately 20% of respondents strongly affirm that they utilize social media to connect with e-commerce businesses.
Strongly Disagree Disagree Neutral Agree Strongly Agree
MEASURING THE REALIABILITY OF THE SCALE BY CRONBACH’S
Based on the factors mentioned in the survey of customers who have been shopping online, survey factors are divided into four dimensions Detail:
Using the SPSS program to perform data the reliability of the scale by Cronbach‟s Alpha, we obtain the following results:
Total 223 100.0 a Listwise deletion based on all variables in the procedure
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
The Cronbach alpha analysis of the conceptual scale indicates that all measurement concepts achieve a coefficient of 0.70 or higher, ranging from 0.761 to 0.825 This confirms that there is no need to adjust any variables, as the scale demonstrates the necessary reliability for the research concepts.
After all the variables have been reached, we determine the representative factor in terms of the average calculation for further analysis
COMPUTE cr = (CR1 + CR2 + CR3) / 3
Chapter 4 of the thesis focused on the analysis of descriptive statistics from the sample and assessed the scale's reliability using Cronbach's Alpha Following the data processing and analysis in this chapter, the subsequent chapter will provide the study's conclusions, highlight any limitations, and suggest directions for future research.
CONCLUSION
This study aims to explore the impact of social media on customer relationships within e-commerce By adopting an e-commerce model approach, the research focuses on the customer relationship component of the e-business model ontology (e-BMO) This component is divided into three key elements: information strategy, feel and serve, and trust and loyalty The primary research question investigates the relationship between social media usage and customer relationships in e-commerce, necessitating the exploration of two related sub-questions to provide comprehensive insights.
● Sub-question 1: Is social media use related to the customer relationship?
● Sub-question 2: How is social media use related to the customer relationship?
This study reveals a significant connection between social media and customer relationships, demonstrating a positive impact based on survey responses Questionnaires were distributed among individual contacts to gather valuable insights.
A recent survey with 223 responses revealed that most participants believe social media enhances their awareness of products and satisfaction with company services This trend is particularly prominent among young consumers aged 18 to 34, who frequently use social media for shopping The convenience of online purchasing aligns well with their busy lifestyles, allowing them to shop from their laptops or smartphones Companies can leverage this trend-setting behavior by effectively promoting in-demand products through social media, which can strengthen customer relationships However, businesses must remember that the primary use of social media is to connect with friends and family, so they should be cautious not to overwhelm users with promotional content Striking a balance between sharing discounts and maintaining genuine connections is crucial; businesses should aim to engage with consumers as friends rather than aggressive salespeople to foster trust and loyalty.
In conclusion, social media plays a crucial role in enhancing customer relationships within the e-commerce sector Integrating various social media platforms into customer relationship management (CRM) can lead to positive outcomes, aligning with our expectations Consequently, e-commerce businesses should strategically develop their CRM approaches to effectively incorporate social media.
By understanding the consumers‟ information needs of the purchasing, companies can actively use this to benefit the consumers‟ shopping experience.
LIMITATION
As with any study, this study has several limitations, including:
Utilizing a non-random convenience sample limits the generalizability of study findings, particularly in the context of social media and online shopping, where obtaining a complete list of the population is impractical In contrast, employing a random sampling method enhances the potential to apply results to the entire population However, even with random sampling, there is a risk that participants may not respond truthfully to questionnaires.
The current study's sample size of 223 respondents, while theoretically adequate, may not accurately represent the broader population There is a possibility that respondents provided answers aimed at pleasing the interviewer rather than reflecting their true opinions Increasing the sample size would enhance the study's validity; however, limitations in time and resources hinder this possibility.
The research question is quite a new academic area, which makes it hard to find relevant research literature to guide the questionnaire design.
FUTURE RESEARCH
This study employs both qualitative and quantitative methods, focusing on customer perspectives through surveys While the quantitative approach yielded general insights, further research incorporating qualitative methods, such as interviews from the company's viewpoint, may provide different outcomes The research specifically examined the customer relationship aspect of e-commerce model ontology, integrating the influence of social media However, other components of the e-commerce model, including product innovation, infrastructure management, and finance, present additional avenues for exploration Additionally, as this study targeted individuals in Ho Chi Minh City, future research could benefit from selecting a different demographic for analysis.
This chapter summarizes the study's key findings on the relationship between social media usage and customer relationships, highlighting significant issues Additionally, it addresses the study's limitations and offers recommendations for future research.
Thank you for participating in our survey conducted by the Banking University of Ho Chi Minh City Your input is vital for our research on the impact of social media on e-commerce, specifically regarding its influence on customer relationships The questionnaire will only take five minutes to complete Please check the box below to proceed.
Did you shop online before?
Which social media do you use? (You can choose more than one choice)
Why do you use social media? (you can choose more than one choice)
To keep in touch with friends and family.
To make professional and business contacts.
To discover and share new music, books, films, and other entertainment
To find information and share feedback about brands and products
Please provide your level of agreement/disagreement which represents your opinion about the following statements
( 1-Completely Disagree, 2- Disagree, 3-No idea, 4-Agree, 5-
1 I am more likely to share my online shopping experience with others via social media
2 I am more likely to recommend the product, service or company since I becoming a fan/ follower of it
3 I like to participate in product communities‟ discussions
1 Social media is the main resource, which made me aware about the product
2 My feeling about this product increase since I become its fan/ follower
3 I believe the quality of customer services is higher when company embrace social media into its business
1 I trust the information shared with me by people I know through social media channels
2 E-commerce companies who are well known in social media are credible
3 I feel a sense of loyalty with companies I know via social media using
1 I have a more effective relationship with e- commerce company because of the use of social media technologies
2 I have been persuade to buy the product by the information which I got from various social media forms
3 I am pleased to establish relationship with my interested e-commerce company through use of social media
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