Social Networks In Marketing Research: Geolocation Services

Larisa DANCHENOK, Ph.D., ProfessorPeter NEVOSTRUEV, Ph.D., Assistant ProfessorMoscow State University of Economics, Statistics and Informatics (MESI)

How can marketers use Foursquare in service quality research?

How do they express themselves?What is the difference?

What has changed?

Introduction and Objectives

Hypothesisability of using geolocation services as a source of information about the actual quality of customer service.

Introduction and Objectives

Objectives1. Identification of the proportion of geolocation services

users among social networks users and the underlying causes and directions of use.

2. Identification of the proportion of people which do not use geolocation services and the reasons why they do not use them.

3. Assess the willingness of consumers to provide feedback on the service quality in geolocation services instead of traditional methods of expression.

4. Review existing tips on the service quality in several venues.

Conceptual Framework

Geolocation services are based on the identification of the real-world geographic location of user and allow to use the social connections.

Method

1. Online surveyGoogle Docs9 days306 respondents

2. Content-analysis of the tips in geolocation services (foursquare)Branches: Fast-Food, Coffee House, Banks, Cellular Operators, Sushi

Method: Target Audience

до 17 18-22 23-27 28-35 36-50 старше 50

28

180

57

2714

0

Gender Age

Advanced social networks users

Male37%

Female63%

Findings: Online Survey

28 % of respondents are users of geolocation services. The most popular reason why people use geolocation services: 1) easy of finding new venues, 2) an entertainment component, 3) desire to track the movement of the friends.

It is convenient to find new places

It is fun to use (great to be mayor, for example)

Watch over my friends, where they are and where they go

I want to earn more points (nice to compete)

It is trendy

To participate in special promotions

54

48

47

26

20

13

How do you use geolocation services? (%)

Findings: Online Survey

The most popular geolocation services is foursquare.

Foursquare.com

Google Latitude

Facebook Paces

Altergeo.ru

Other

65

28

16

15

14

What services do you use? (%)

Findings: Online Survey

The majority of respondents post some tips and photos sometimes.

Very often Sometimes No, I don`t I don`t know how

0

20

40

60

11

58

26

6

12

46

35

7

Tips Photos

How often do you post tips and photos? (%)

Findings: Online Survey

The main reasons why respondents did not use geolocation services: is non-acquaintance and also the lack of meaning in using. But only 21 % said that they just will not use such services in the future. So 79 % could be users.

I do not know what it is

Not see any reason

Inconvenient to use

Previously enjoyed, tired

Technical difficulties

It's not confidential

47

39

5

4

4

1

Why don`t you use any geolocation services? (%)

Findings: Online Survey

If the service quality in an venue are not satisfied with the respondent (51 %) of users of geolocation services write about it in the service, but not in the traditional sources (for example: the Book of claims).

I will write about it in geolocation service

I will call a manager

I will ask for Book of claims

I will do nothing

Other

51

36

26

13

6

If the service quality is horrible what you do? (%)

Findings: Content Analysis

Findings: Content Analysis

Bad Neutral Good

Coffee House 73 42 50

Caffeine 31 38 154

Sturbucks 133 178 374

25

75

125

175

225

275

325

375

Tips

am

ount

Coffee Houses

Findings: Content Analysis

Плохо Нейтрально Хорошо

McDonalds 42 47 47

Burger King 18 23 31

2.57.5

12.517.522.527.532.537.542.547.5

Tips

am

ount

Fast-Food

Findings: Content Analysis

Bad Neutral Good

Sberbank 4 1 5

Alfa Bank 37 15 11

2.5

7.5

12.5

17.5

22.5

27.5

32.5

37.5

Tips

am

ount

Banks

Findings: Content AnalysisCellular

1 2 3

MTS 5 7 2

Beeline 15 7 1

13579

111315

Tips

am

ount

Findings: Content AnalysisSushi

Bad Neutral Good

Menza 5 7 26

Yaposha 83 44 75

Yakitotiya 39 53 97

10

30

50

70

90

110

Tips

am

ount

Discussion

Conclusions on the content analysis• Neutral feedbacks on average 20-30 %.• The average amount of the tips per 1,000

check-in is 19.• Activity of users in geolocation services

depends on the industry specification.

Discussion

The reasons for users write in the geolocation services1. Nobody forces a consumer to write a tip in a

geolocation service, he does it voluntarily2. Notice may affect the credibility of the authors

name, not being anonymous3. There is no pressure from staff4. A note left on neutral territory, not owned by

company5. You do not need a special equipments or tools

Further Research

• Periodic survey (six months, year) to identify the dynamics of user involvement in geolocation services and direction of their use.

• Advanced and more in-depth content analysis of tips and photos.

• The survey and depth interviews to identify reasons why people use geolocation services.

• Modeling consumer satisfaction indexes based on geolocation services content analysis.

Managerial Implications

Consumer behavior is changing and marketing research also must be changed.

Companies should use the information from geolocation services for studying of consumer’s behavior and satisfaction.

Thank you!

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