WRTG 291 Synthesis Essay Final

1Social Medias Impact on Business

WRITING 291

Synthesis Essay

Jennifer Lloyd

University of Maryland University College

This paper was prepared for Writing 291, taught by Professor Dozier


Synthesis Essay

Most people can agree that technology and the Internet have changed the way people live

however some don’t consider the major impact it has had on business. Businesses have had to

change the way they interact with customers in order to keep up with the quickly evolving e-

commerce world. Studies and articles have been written about the way businesses have had to

adapt. Many businesses have embraced social media and according to research there have been

positive effects. For instance in the article “Digital and Social Media in the Purchase Decision

Process,” the authors Todd Powers, Dorothy Advincula, Manila S. Austin, Stacy Graiko and

Jasper Snyder investigate the impact that social media has on consumers. More specifically, the

article “The Power of “Like” How Brands Reach (and Influence) Fans through Social-Media

Marketing” written by Andrew Lipsman, Graham Mudd, Mike Rich, and Sean Bruich explores

how Facebook can be used to capture more attention and brand recognition. Furthermore, the

article “One Café Chain’s Facebook Experiment,” written by Utpal M. Dholakia and Emily

Durham captures the experience of one companies Facebook Fan Page initiation and success.

Then, Scott Berinato and Jeff Clark turn attention away from Facebook and focus on ways to

utilize Twitter, another social media site used by businesses in “Six Ways to Find Value in

Twitter Noise.” In addition, Jilly Duffy gives small businesses advice on how to use social

media effectively in the article “15 Social Media Tips for Small Businesses.” Specific way to

use social media is important however understanding how consumers and businesses are affected

is equally important. Therefore the articles “Capturing Business Value with Social

Technologies” written by J. Bughin, M. Chui and J. Manyila and “A Review of Social Media and

Implications for the Sales Process” reviews the ways businesses can use social media and other

technologies as well as the effects on consumers and businesses. Lastly, “The Impact of New


Technology on Customer Satisfaction and Business to Business Customer Relationships:

Evidence from the Soft Drinks Industry” describes how technology in general has changed

businesses interactions with customers. These articles have different points yet they all agree

that consumers crave more interaction, information and the ability to express their experiences.

Social media offers the platform consumers are looking for in today’s Internet driven world. In

fact social media poses many benefits including the introduction of product, services and

promotions, promotes brand and product transparency, increases customer service and allows

companies to evaluate feedback regarding services and products.

Businesses have found new ways to introduce their brands, products and promotions

using social media. For example, in the article “Digital and Social Media in the Purchase

Decision Process,” Powers, Advincula, Austin, Graiko and Snyder state that consumers are using

social media to discover new brands and products. They also point out that consumers are not

“Always on” which means they are ready to purchase products all the time either actively or

passively. (Powers, Advincula, Austin, Graiko and Snyder, pg. 480) Moreover, in the article

“The Power of “Like” How Brands Reach (and Influence) Fans through Social Media

Marketing” the authors reiterate that social media offers ways for businesses to introduce their

brand, products and promotions to consumers and states that brand information can be easily

shared with consumers and their social network. (Lipsman, Mudd, Rich, Bruich, pg. 44-47)

Additionally businesses are always looking for new, innovative and inexpensive ways to reach

consumers, social media offers this advantage. For instance in the article “Review of Social

Media and Implications for the Sales Process” the authors quote Edwards, 2012 who states

“Facebook and Google can be “more efficient” than the traditional media that usually eats the

lion’s share of…” a large businesses ad budget. (Andzulis, Panagopoulos, Rapp, pg. 305)


Additionally, in “One Café Chain’s Facebook Experiment” the authors state that having a

Facebook presence allows consumers to spread the word and introduce the brand to other

friends. (Dholakia, Durham, pg. 26) Also word of mouth can often be the best source referrals

and can introduce a brand or product to prospective customers. Hence, businesses can convey

information about its brand or product with little to no expense while reaching prospective and

current customers. Consequently when used correctly businesses can provide clear and technical

brand and product information which leads to business or product transparency.

Customers want information about products, services and the business in which the plan

to acquire these products and services from. Today’s consumers are better informed and won’t

tolerate dubious business practices. According to the authors of “Digital and Social Media in the

Purchase Decision Process” consumers want and are able to quickly find information about

anything online, specifically through social media sites. Once a consumer feels well informed

and decides to purchase a product or service they are comforted in the fact that they made an

informed decision. (Powers, Advincula, Austin, Graiko, Snyder, pg. 486) Product information is

not the only information important to consumers, the article “A Review of Social Media and

Implications for the Sales Process” reveals that “real-time feedback from other customers,

competitors and experts’ are available for customer review”. (Andzulia, Panagopoulos, Rapp,

pg. 310) For example, Foursquare is a popular social media site that allows patrons of

businesses to check and create comments and tips for viewers and visitors to read. Additionally,

Jilly Buffy recommends that business owners add a personal touch to their company profile page

by offering information about who they are as well as relevant information about product issues,

competitors and brands. When a business is transparent the consumer begins to trust the brand


and product which leads to customer loyalty. Loyalty can be maintained by providing excellent

customer service.

Excellent customer service is essential for a business to succeed. For example, the article

“The Impact of New Technologies on Customer Satisfaction and Business to Business Customer

Relationship: Evidence from the Soft Drinks Industry” reports that satisfied customers are less

worried about price, less likely to go with a competitor and more likely to stay loyal. (Ryding,

pg. 225) Moreover, according to Bughin, Chui, and Manyika in the article “Capturing Business

Value with Social Technologies” social media forums allow businesses to communicate with

customers and provide customer service. (Bughin, Chui, Manyika, pg. 1) Some ways in which

customer service can be achieved is through listening, encouraging open lines of communication

and offering rewards to loyal customers. Listening to customers via social media is simple,

businesses should review comments left on social media sites and respond appropriately, even if

the comment is negative. As mentioned in “A Review of Social Media and Implications for the

Sales Process” listening builds trust and social media promotes and encourages listening.

(Andzulia, Panagopoulos, Rapp, pg. 310) Furthermore encouraging open dialogue with

customers will deepen connections, inspire word of mouth recommendations and build customer

loyalty according to Powers, Advincula, Austin, Graiko and Snyder. (Powers, Advincula, Austin,

Graiko Snyder, pg. 480) Although listening and communicating with customers is a great way to

increase customer satisfaction another method is to provide customer loyalty rewards. For

example in “15 Social Media Tips for Small Businesses” Jilly Duffy recommends not only

engaging with followers but also offering exclusive offers and loyalty coupons. (Duffy, pg 4)

While offering coupons and communicating with customers is going to help businesses enhance


loyalty, businesses can use social media to their advantage by uncovering what customers are

saying about their brand and product.

Companies can leverage social media to evaluate their brand and products based on

customer feedback. Customer feedback should be recognized and responded to immediately in

order for businesses to achieve the highest levels of customer service. However, as mentioned

above, businesses must listen and when they do they can learn to improve their product and

brand. According to the article “Capturing Business Value with Social Technologies” social

media can assist companies with Research and Development based on customers insights. An

example of this is when companies use social networks to create new services with clients

(Bughin, Chui, Manyika, pg. 4) In addition some social media sites allow companies to research

negative words associated with their product or brand. For example “tweets” can be utilized by

businesses to capture what consumers are saying about a brand as well as its competitors.

(Berinato, Clark, pg. 35) Moreover Facebook also allows companies to see what followers are

saying about their brand or product, this helps track word of mouth recommendations (Dholakia,

Durham, pg. 26) To sum it up Powers, Advincula, Austin, Graiko and Snyder suggest that

negative feedback allows businesses to respond and evaluate products to make improvements,

while positive feedback allows companies to share success stories. (Power, Advincula, Austin,

Graiko, Snyder, pg. 487) In conclusion social media creates an atmosphere for businesses and

customers to communicate openly and work together to improve brands and products.

Businesses can use the power of social media to effectively interact with customers. No

matter the subject of the articles, the authors agree that social media creates an opportunity for

businesses to earn customer loyalty and trust. The articles including “The Power of “Like” How

Brands Reach (and Influence) Fans through Social-Media Marketing,” “One Café Chain’s


Facebook Experiment,” “Six Ways to Find Value in Twitter Noise,” and “15 Social Media Tips

for Small Businesses,” focus on how to implement and use specific social media sites effectively.

While other articles review the specific impact social media has had on businesses and customers

including “Digital and Social Media in the Purchase Decision Process,” and “A Review of Social

Media and Implications for the Sales Process.” And finally, other articles review how all

technology has impacted businesses, as discussed in “Capturing Busienss Value with Social

Technologies” and “The Impact of New Technology on Customer Satisfaction and Business to

Business Customer Relationships: Evidence from the Soft Drink Industry.” Each article

specifically demonstrates that businesses must implement social media in order to create stronger

relationships with customers as well as build new ones. Social media allows businesses to

present their brand and products to customers in an inexpensive way. Customers can share these

brands through word of mouth via social networking sites helping businesses reach additional

prospective customers. Furthermore social media sites require businesses to be transparent since

negative reviews, competitor information and expert feedback is all available online. Moreover

transparency helps build trust with consumers. Once trust is established loyalty is soon to

follow. However in order for businesses to maintain loyalty they must offer superior customer

service and communicate with customers effectively. It is important to realize that customers

want to feel they are being heard so businesses must respond to negative and positive reviews.

As a matter of fact listening to both negative and positive feedback can enable businesses to

improve on their brand or product. Using comments left by customers, businesses can show

customers they are being heard by responding as well as creating a plan for improvement. As a

result customers will continue feeling loyal and informed. In conclusion, the articles provide

support that social media can benefit businesses by allowing them to introduce products, services


and promotions, as well as provide business and product transparency, increase customer service

and allow companies to evaluate feedback regarding products and services. Lastly, a happy

customer leads to a profitable and successful business therefore businesses should create a

customer service oriented social media platform.


References

Andzulia, J., Panagopoulous, N.G., & Rapp, A. (2012). A review of social media and implications for the sales process. Journal of Personal Selling & Sales Management, 32(3), 305-316.

Bernato, S. & Clark, J. (2010). Six ways to find value in twitter’s noise. Harvard Business Review, 88(6), 34-35.

Bughin, J., Chui, M., & Mayika, J. (2012). Capturing business value with social technologies. Mckinsey Quarterly, (4), 72-80.

Dholakia, U., & Durham, E. (2010). One café chain’s facebook experiment. Harvard Business Review, 88(3), 26.

Duffy, J. (2012). 15 social media tips for small businesses. PC Magazine, 116.

Lipsman, A., Mudd, G., Rich, M., & Bruich, S. (2012). The power of “like”: How brands reach (and influence) fans through social-media marketing. Journal of Advertising Research, 52(1), 40-52. doi:10.2501/JAR-52-1-040-052

Powers, T., Advincula, D., Austin, M.S., Graiko, S., & Snyder, J. (2012). Digital and social media in the purchase decision process: A special report from the advertising research foundation. Journal of Advertising Research, 52(4), 479-489. doi:10:2501/JAR 52-4-479-489

Ryding, D., (2010). The impact of new technologies on customer satisfaction and business to business customer relationships: Evidence from the soft drinks industry. Journal of Retailing And Consumer Services, 17 224-228. Doi: 10.1016/j.retconser.2010.03.008

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WRTG 291 Synthesis Essay Final