Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)

Research Article: 2021 Vol: 24 Issue: 6S

Consumer Marketing Strategy on Social Media in the Last Decade

Albérico Rosário, GOVCOPP, IADE - Universidade Europeia

Rui Cruz, UNIDCOM/IADE - Universidade Europeia

Liliana Ribeiro, NECE - Universidade da Beira Interior

Abstract

 Social media has transformed consumers into value co-creators in the consumer marketing strategy and in the past decade, social media users have significantly increased. Today social media plays a significant role in creating product awareness and promoting brands and given the stiff competition in current markets, companies are looking for ways of identifying and understanding consumer needs and behaviours. Thus, social media have become a valuable tool for collecting and analysing consumer information regarding the target audience’s interests and behaviours these opportunities support the implementation of consumer-focused marketing strategies and messages since consumers use social media to compare brands and their alternatives before purchasing decisions. Internet users often share their experiences and opinions about a company and its products or services and aspiring customers use information to make judgments, making it a fundamental tool of modern-day marketing. The following research aims to analyse the contributions of social media in defining and improving consumer marketing strategy in the last decade. To conduct this research, a systematic literature review was conducted following a Domain Based Review categorised as a Structured Review focusing on widely used methods and theories. Major findings allow us to understand the role of social media in consumer marketing strategy as well as major aspects of consumer interactions and engagement.

Keywords

Consumer, Marketing Strategy, Social Media

Introduction

A consumer marketing strategy refers to an organizational approach used to match products and services with target consumers’ needs to maximize profits. Fundamental marketing principles focus on creating value for target populations and capturing value the companies (Kachersky & Lerman, 2013). Achieving these goals requires that firms and marketers understand consumer behaviours and intentions to ensure that marketed products and services address their exact needs. Mothersbaugh, et al., (2019) indicate that successful marketing decisions require collecting information regarding the specific audience targeted by the marketing strategy. The emergence of social media and the internet has significantly contributed to this data gathering procedure, thus, improving consumer marketing strategies. Berthon, et al., (2012) define social media as communication channels that use the internet and Web-based technologies to change “broadcast media monologues (one to many) into social media dialogues (many to many).” Chi (2011) defines social media marketing as a strategy that connects brands and consumers by allowing user-centred interactions and networking. As a result, social media has transformed marketing from one-directional communication, where companies disseminated promotional messages to passive audiences, into multidimensional communications characterized by frequent firm-customers interactions (Yadav & Rahman, 2017). Therefore, social media has transformed consumers into value co-creators in the consumer marketing strategy. This research aims to analyse the contributions of social media in defining and improving consumer marketing strategy in the last decade integrating major findings of scientific literature in the last 10 years.

Methodological Approach

To conduct this research, a systematic literature review was conducted. It is a methodology that when applied to an article provides a comprehensive overview of literature related to a theme/theory/method and synthesizes prior studies to strengthen the foundation of knowledge (Paul & Criado, 2020).

This research follows a Domain Based Review categorised as a Structured Review focusing on widely used methods, theories and constructs (Canabal & White, 2008; Kahiya, 2018; Paul & Singh, 2017; Paul & Feliciano-Cestero, 2020; Rosado-Serrano, Paul, & Dikova, 2018).

Strutured review helps the researchers to understand the methods already used and what theories and constructs have already been applied. It´s very usefull for identifying research gaps with reference tomethods, theories and constructs based on the compiled information (Paul & Criado, 2020) and collecting and classifying empirical information findings to promote evidence-based practice (Paré & Kitsiou, 2017). Rather than providing the background of a research, the literature review methodology used in this paper creates valuable work to provide vital information for business practitioners regarding optimizing social media in consumer marketing. It can, therefore, be used to guide decision-making and work practices (Snyder, 2019). The primary benefit of literature reviews over other methodologies is providing detailed knowledge since they integrate findings from multiple studies (Ramalho et al., 2015). The created work is replicable, reliable, and transparent since an extensive search and screening process was adopted to identify appropriate information sources.

A scientific procedure of searching and critically reviewing literature was implemented. The process involved six steps recommended by Whitehead (2013), formulating the research problem, searching for appropriate literature, evaluating the studies for inclusion, critical appraisal of the selected studies, data synthesis from individual sources, and reporting findings and recommendations (Table 1).

Table 1
Process of Systematic Literature Review
Phase Step Description
Exploration Step 1 formulating the research problem
Step 2 searching for appropriate literature
Step 3 critical appraisal of the selected studies
Step 4 data synthesis from individual sources
Interpretation Step 5 reporting findings and recommendations
Communication Step 6 Presentation of the literature review report

SCOPUS, the most important peer-review database in the academic world was elected to be used in this research. Although the use of a single database might be considered has a limitation for excluding other academic databases we consider that the use of Scopus which is currently the leading indexing citation database of peer-reviewed research literature preferred by a good number of universities with over 22,000 titles from more than 5,000 international publishers is broad and comprehensive enough to address this weakness. The bibliographic search includes peer-reviewed scientific articles published until April 2021.

An initial search query using keywords “Consumer”, “Marketing strategy”, limiting the search to the exact keyword “social media” and publication dates 2010-2021 reduced the sources to 81 articles, which were synthesized for final reporting. Content and theme analysis techniques were used to identify, analyse and report the various studies as proposed by Rosário (2021); Raimundo & Rosário (2021); Rosário, et al., (2021); Rosário & Cruz (2019) (Table 2).

Table 2
Screening Methodology
Database Scopus Screening Publications
Meta-search keyword: Consumer 480,229
First Inclusion Criterion keyword: Consumer, Marketing strategy 5,494
Second InclusionCriterion keyword: Consumer, Marketing strategySubject area: Business, Management and Accounting 3,131
keyword: Consumer, Marketing strategySubject area: Business, Management and Accounting period 2010-2021 2,155
Screening keyword: Consumer, Marketing strategy,Social mediaSubject area: Business, Management andAccounting, period 2010-2021Exact keyword: Social mediaPublished until April 2021 81

This path allowed us to identify the growth in the search for value propositions and the potential change in knowledge and perceptions. A full screening process was implemented, starting with the screening of the title and abstract, followed by the full text using the selected keywords to identify the relevant sources. Although the initial search generated 121 articles, only 53 met the inclusion criteria and were integrated into the final report.

The 53 scientific articles are subsequently analysed in a narrative manner to deepen the content and the possible derivation of common themes that directly answer the article's research question (Rosário, 2021; Raimundo & Rosário, 2021; Rosário et al., 2021; Rosário & Cuz, 2019). Of the 81 scientific articles selected, 67 are articles, Conference Paper (9) Review (2) Book Chapter (2).

Publication Distribution

Peer-reviewed articles on the topic were searched for the period 2010-2021 and the year 2019 were the one with the most peer-reviewed publications on the subject, reaching 13.

Figure 1 summarizes the published peer-reviewed literature for the 2010-2021 period. The publications were sorted out as follows: Business Horizons; Journal of Business Research; Journal of Interactive Marketing, with 4 publications; International Journal of Contemporary Hospitality Management (3); with 2 (Current Issues In Tourism; Indian Journal of Marketing; International Journal of Electronic Marketing and Retailing; International Journal of Scientific and Technology Research; International Review of Retail Distribution and Consumer Research; Journal of Research in Interactive Marketing; Management Decision; Psychology and Marketing) and with 1 (2018 International Conference on Computing Mathematics and Engineering Technologies Invent Innovate and Integrate for Socioeconomic Development Icomet 2018 Proceedings; Academy of Marketing Studies Journal; Administrative Sciences; Asia Pacific Management Review; British Food Journal; Contextual Approaches in Communication; Corporate Communications; Decision Support Systems; Hospitality Marketing and Consumer Behaviour Creating Memorable Experiences; Informacijos Mokslai; Information Systems Research; International Journal of E Business Research; International Journal of Entrepreneurship and Small Business; International Journal of Internet Marketing and Advertising; International Journal of Market Research; International Journal of Nonprofit and Voluntary Sector Marketing; International Journal of Pharmaceutical and Healthcare Marketing; International Journal of Sport Management and Marketing; International Journal of Tourism Research; International Journal of Wine Business Research; Journal of Advances in Management Research; Journal of Brand Management; Journal of Digital and Social Media Marketing; Journal of Fashion Marketing and Management; Journal of Global Fashion Marketing; Journal of Historical Research in Marketing; Journal of Hospitality Marketing and Management; Journal of International Marketing; Journal of Internet Banking and Commerce; Journal of Internet Commerce; Journal of Media Business Studies; Journal of Product and Brand Management; Journal of Retailing and Consumer Services; Journal of Strategic Marketing; Journal of Sustainable Tourism; Journal of Theoretical and Applied Electronic Commerce Research; Lecture Notes in Business Information Processing; Managing Sport and Leisure; Marketing Science; Pertanika Journal of Social Sciences and Humanities; Proceedings of 2019 International Conference on Information Management and Technology Icimtech (2019); Proceedings of The 26th International Business Information Management Association Conference Innovation Management and Sustainable Economic Competitive Advantage from Regional Development to Global Growth Ibima (2015); Proceedings of the 33rd International Business Information Management Association Conference Ibima 2019 Education Excellence and Innovation Management Through Vision 2020; Proceedings of the European Conference on Innovation and Entrepreneurship Ecie; Proceedings of the International Conference on Electronic Business Iceb; Publishing Research Quarterly Smsis (2017); Proceedings of The 12th International Conference on Strategic Management and its Support by Information Systems 2017; Strategic Direction; Tourism Management Perspectives; Vikalpa).

The interest on the topic varies a lot over time but it shows an upward trend, with the 2021 data lasting until April.

Figure 1: Documents By Year

In Table 3 we analyse the Scimago Journal & Country Rank (SJR), the best quartile and the H index by publication. Management Science is the most quoted publication with 5,940 (SJR), Q1 and H index 127.

There is a total of 22 journals on Q1, 12 journals on Q2 and 13 journals, Q3 and 3 journals on Q4. Journals from best quartile Q1 represent 35% of the 48 journals titles; best quartile Q2 represents 19%, best quartile Q3 represents 13%, and finally, best Q4 represents 19% each of the titles of 62 journals.

Finally, 12 of the publications representing 19%, the data are not available

As evident from Table 3 the significant majority of articles for Consumer Marketing Strategy on Social Media rank on the Q1 best quartile index.

Table 3
Scimago Journal & Country Rank Impact Factor
Title SJR Best Quartile H index
Marketing Science 5,940 Q1 127
Journal of Interactive Marketing 3,290 Q1 97
Information Systems Research 3,240 Q1 151
International Journal of Contemporary Hospitality Management 2,200 Q1 76
Journal of International Marketing 2,030 Q1 89
Decision Support Systems 1,920 Q1 138
Journal of Business Research 1,870 Q1 179
Journal of Sustainable Tourism 1,730 Q1 103
Journal of Hospitality Marketing and Management 1,710 Q1 53
Journal of Retailing and Consumer Services 1,570 Q1 89
Tourism Management Perspectives 1,450 Q1 43
Current Issues in Tourism 1,400 Q1 64
Business Horizons 1,400 Q1 76
Psychology And Marketing 1,350 Q1 107
International Journal of Tourism Research 1,160 Q1 58
Journal of Product and Brand Management 0,980 Q1 81
Management Decision 0,860 Q1 91
Journal of Global Fashion Marketing 0,830 Q1 20
Journal of Fashion Marketing and Management 0,770 Q1 52
Journal of Media Business Studies 0,660 Q1 19
British Food Journal 0,580 Q1 74
Publishing Research Quarterly 0,400 Q1 16
Journal of Research in Interactive Marketing 0,760 Q2 31
Journal of Internet Commerce 0,720 Q2 25
Journal of Brand Management 0,780 Q2 50
Journal of Strategic Marketing 0,640 Q2 50
Journal of Theoretical and Applied Electronic Commerce Research 0,530 Q2 30
Asia Pacific Management Review 0,490 Q2 15
Journal of Advances in Management Research 0,460 Q2 20
International Journal of Wine Business Research 0,460 Q2 36
International Journal of Market Research 0,420 Q2 54
International Journal of Entrepreneurship and Small Business 0,410 Q2 29
International Journal of Nonprofit and Voluntary Sector Marketing 0,400 Q2 12
International Review of Retail Distribution and Consumer Research 0,310 Q2 37
Managing Sport and Leisure 0,420 Q3 35
International Journal of Sport Management and Marketing 0,280 Q3 24
International Journal of Pharmaceutical and Healthcare Marketing 0,260 Q3 22
Vikalpa 0,240 Q3 23
International Journal of E Business Research 0,220 Q3 20
Indian Journal of Marketing 0,210 Q3 8
Journal of Historical Research in Marketing 0,210 Q3 16
Lecture Notes in Business Information Processing 0,210 Q3 49
International Journal of Electronic Marketing and Retailing 0,180 Q3 10
Pertanika Journal of Social Sciences and Humanities 0,170 Q3 12
Journal of Digital and Social Media Marketing 0,150 Q3 2
International Journal of Scientific and Technology Research 0,120 Q3 15
Informacijos Mokslai 0,140 Q3 1
International Journal of Internet Marketing and Advertising 0,160 Q4 18
Academy of Marketing Studies Journal 0,150 Q4 13
Strategic Direction 0,120 Q4 12
Proceedings of The International Conference on Electronic Business Iceb 0,120 -* 7
Proceedings of The European Conference on Innovation and Entrepreneurship Ecie 0,130 -* 6
Journal of Internet Banking and Commerce -* -* 23
Proceedings of the 26th International Business Information Management Association Conference Innovation Management and Sustainable Economic Competitive Advantage from Regional Development to Global Growth Ibima 2015 -* -* 6
2018 International Conference on Computing Mathematics and Engineering Technologies Invent Innovate and Integrate for Socioeconomic Development Icomet 2018 Proceedings -* -* -*
Administrative Sciences -* -* -*
Contextual Approaches in Communication -* -* -*
Corporate Communications -* -* -*
Hospitality Marketing and Consumer Behavior Creating Memorable Experiences -* -* -*
Proceedings of 2019 International Conference on Information Management and Technology Icimtech 2019 -* -* -*
Proceedings of The 33rd International Business Information Management Association Conference Ibima 2019 Education Excellence and Innovation Management Through Vision 2020 -* -* -*
Smsis 2017 Proceedings of The 12th International Conference on Strategic Management and Its Support By Information Systems 2017 -* -* -*
Note: *Data not available.

The subject areas covered by the 53 scientific articles were: Business, Management and Accounting (81); Social Sciences (15); Computer Science (12); Decision Sciences (10); Economics, Econometrics and Finance (10); Engineering (5); Arts and Humanities (3); Psychology (3); Mathematics (2); Medicine (2); and with 1 (Agricultural and Biological Sciences; Environmental Science).

The most quoted article was “Marketing meets web 2.0, social media, and creative consumers: Implications for international marketing strategy” from Berthon et al. (2012) with 465 quotes published in the Business Horizons 1.400 (SJR), the best quartile (Q1) and with H index (76). The published article focuses on studying management recommendations to keep continuously updated on technology, customers and social media.

In Figure 2 we present the citations evolution of articles published between ≤2010 and 2021. The number of quotes shows a positive net growth with an R2 of 2,99% for the period ≤2010-2021, with 2020 reaching 176 citations.

Figure 2: Evolution of Citations Between ≤2010 and 2021

The h-index was used to ascertain the productivity and impact of the published work, based on the largest number of articles included that had at least the same number of citations. Of the documents considered for the h-index, 22 have been cited at least 22 times.

In Annex I, the citations of all scientific articles from the ≤2010 to 2021 period are presented. In a total of 3455 citations of the 81 publications, 15 of them were not cited.

Annex II examines the self-citation of the document during the period ≤2010 to 2021, 31 documents were self-cited 87 times, the article “Why non-profits are easier to endorse on social media: The roles of warmth and brand symbolism” by Bernritter, et al., (2016) published in the Journal of Interactive Marketing was cited 8 times.

In Figure 3, a bibliometric study was carried out to investigate and identify indicators on the dynamics and evolution of scientific information using the main keywords. The study of bibliometric results using the scientific software VOSviewer, allowed the identification of the main research keywords "Consumer", "Marketing Strategy" and "Social Media".

The linked keywords can be examined in Figure 4 making it clear the network of keywords that appear together / linked in each scientific article, allowing to know the topics studied by the researchers and to identify future research trends. In Figure 5, it is presented a profusion of co-citation with a unit of analysis of cited references.

Figure 3: Network of All Keywords

Figure 4: Network of Linked Keywords

Figure 5: Network of co-citation

Theoretical perspectives

A consumer marketing strategy is customer-oriented and develops marketing plans and messages based on a comprehensive understanding of the target audience. Marketing is an organizational strategy used to create and distribute compelling and educational content in multiple formats to attract and retain buyers (Mhimed & Belkhir, 2018). While traditionally marketers and firms would create and share the content with passive recipients, social media has created platforms that require more consumer involvement and interactions (Samli, 2012). Carr & Hayes (2015) define social media as communication channels based on web 2.0 technologies that promote interactions between consumers and organizations. The emergence of the internet and social media has significantly redefined marketing strategies since the platforms require creating and disseminating content that engages the target audiences (Cheng & Edwards, 2015).

Through these technologies, companies gather data on consumer behaviors that influence decision-making to implement customer-centered marketing plans fundamental in consumer marketing strategy.

Similarly, social media has increased consumers’ access to brand information to make informed judgments. For instance, Feng, et al., (2021) indicate that social media users trust positive reviews from peers than promotional messages, while Smith, et al., (2012) suggest that they perceive them as significant information sources. Goldsmith, et al., (2013) further contribute to this argument citing that consumers benefit when other consumers join a social networking platform since they create opportunities for consumers to express their views regarding the offered products. Therefore, social media as a marketing tool has led to mutual understanding between brands and their target consumers, creating a new marketing strategy centered on value co-creation to ensure mutual benefits.

The Role of Social Media in Consumer Marketing Strategy

In the past decade, social media users have significantly increased. Higgins & Wolf (2017) estimate that approximately 74% of adults on social media are active, where 1 in 3 use SNSs daily. Examples of these platforms include Facebook, Instagram, Twitter, LinkedIn, YouTube, and Google+ (Smith et al., 2015). Contrary to the common belief that social media is popular among young generations, the authors report that the numbers changed since 2014, with the platforms being embraced among all ages. The networking component of social media has turned it into a cheap and convenient marketing tool that enables companies to target and communicate with existing and potential customers (Ho et al., 2020; Shimpi, 2018). Its ability to timely and directly reach out to consumers has changed the current and future marketing strategies. Sotiriadis (2017) explains that companies are increasing optimizing the digital advertising space and growing online communities by initiating brand conversations and values. Online networking and connection have led to establishing a marketing strategy centered on consumer-brand relational communication (Ho et al., 2020). Therefore, social media characteristics and its ability to unite different populations worldwide create multiple opportunities unavailable in traditional marketing and communication tools such as broadcast media.

Social media plays a significant role in creating product awareness and promoting brands. Given the stiff competition in current markets, companies are looking for ways of identifying and understanding consumer needs and behaviors (Hosseini & Ghalamkari, 2018; Shen et al., 2016). Thus, social media have become a valuable tool for collecting and analyzing consumer information regarding the target audience’s interests and behaviors. These opportunities support the implementation of consumer-focused marketing strategies and messages that align with the desires and expectations (Stone & Woodcock, 2013). Hu & Olivieri (2020) support this argument by indicating that consumers use social media to compare brands and their alternatives before purchasing decisions. Internet users often share their experiences and opinions about a company and its products and services (Sharma et al., 2021). Aspiring customers use the information to make judgments, making it a fundamental tool of modern-day marketing. An example of social media power is illustrated by Hsu (2019), who indicates that a devastating video can be shared online and receive hundreds of clicks and sharing within a few moments.

This situation can lead to rolling over and killing a company and products and eventually destroying the stock price (Vassilikopoulou & Kottara, 2019; Tanford et al., 2020). Adverse publicity and criticism increase perceived risks and cause people to adopt unfavorable attitudes towards a firm and its products. Kilgour (2015) explains that content marketing in digital marketing involves understanding consumers’ active role in sharing and earning media space. Since social media is a consumer product (Thoring, 2011). Therefore, firms and marketers should understand the need for their involvement in the co-creation of experiences and the role of consumer-generated content in marketing. This knowledge can help reduce negative criticism and skepticism since the promotional strategies and information disseminated will be consumer-centered.

Social media has significantly contributed to consumer marketing strategy by providing a platform that enhances interactions to create an emotional appeal. Although consumption behaviors are mainly supported by information, some researchers indicate that consumers rely on emotions to make judgments (Kujur & Singh, 2018). Marketing messages that result in emotional responses strengthen consumer-brand relationships and influence their attitudes, leading to favorable decisions. For example, companies that create video advertisements with characters and plots relatable to target audiences maintain emotional aspects of engagement and persuasion (Kujur & Singh, 2017; Üçok Hughes et al., 2016). The information relayed should include compelling product facts that arouse powerful consumer emotions and create empathy among viewers. Kujur & Singh (2018) explain that emotions develop from a consumption process and help predict judgments and attitudes. In this case, the emotional response depends on past experiences with a brand and knowledge accumulated through multiple interactions (Wasan, 2017). Therefore, social media contributes to this process by improving interactions and brand knowledge acquisition to enhance experiences and attitudes that influence emotional responses (Liang & Scammon, 2016). Online advertisements integrate multiple dimensions of emotions. For instance, the engagement aspect of video advertisement causes feelings of warmth and excitement, while entertainment aspects cause feelings of excitement and urgency. While at the pre-purchase stage, emotions determine a consumer’s motivation (Kujur & Singh, 2018). They are associated with satisfaction and loyalty at the post-purchase stage (Vanko & Zaušková, 2019). The message disseminated through promotional strategies should be curated based on the emotions the marketers intend to arouse and desired responses. Therefore, emotions have a direct correlation to behavioral intentions and decision-making.

Social media platforms promote Electronic Word-Of-Mouth (eWOM), which bridges the gap between Firm-Generated Content (FGC) and User-Generated Content (UGC). Companies use the social networking platforms such as Facebook and YouTube to implement FGC marketing campaigns (Hirschfelder & Chigada, 2020). Similarly, consumers publish comments and ratings on the FGC, leading to the production of UGC. Therefore, online interactions highlight the interdependence of firm and consumer-generated knowledge in value creation and innovation processes (Litvin et al., 2018; VanMeter et al., 2015). Web 2.0 technologies significantly influenced content marketing by empowering consumers and redefining their roles in marketing strategies. Their user-friendly interface and limitless accessibility provide consumers with a range of alternatives that affect their response and reactions to advertising messages (Leonhardt et al., 2020). Therefore, companies should ensure that FGC marketing campaigns align with customer needs and expectations to arouse positive responses that lead to eWOM. The focus should be on improving consumer satisfaction and experiences to influence commitment and loyalty, leading to positive reviews and recommendations (Mishra & Satish, 2016). The growth of social media platforms has shifted organizational marketing tactics from traditional communication tools that were one-way to online tools which are two-way or multidimensional. However, the increase in online advertisements has undermined consumers’ trust in FGC and favor UGC since they are likely to believe peer recommendations over organizational information (Xiao et al., 2018). Therefore, companies should ensure that their FGC provides essential and credible information that leads to positive perceptions and ratings to promote eWOM.

Web 2.0 technologies and social media have enabled data mining for improved business and marketing practices. Lau, et al., (2014) identify various analytic tools such as the Feature-Based Summarization (FBS) system to collect and analyze data on consumers’ opinions regarding a brand. FBS is a mining algorithm that identifies opinion phrases and noun phrases associated with product features in online product reviews. Social media creates a platform where consumers share their sentiments on specific brands they have used or intended to use (Mainardes & Cardoso, 2019). Firms and marketers optimize these by tracking and analyzing these comments and reviews to understand consumers’ perceptions and awareness levels. While eWOM is a positive outcome of social media, Melancon & Dalakas (2018) identify negative comments and criticism as companies’ major fear in online marketing. When consumers publish negative comments, companies experience a widespread backlash with extreme consequences of lousy press, business closure, and a drop in stock prices. Although analytical tools do not provide control over negative consumer comments, they provide organizations with the technological capability to track the criticism’s origin and respond accordingly and timely to mitigate the consequences (Lau et al., 2014). They create a sense of control for firms and marketers amidst rapid technological advancements that have significantly shifted power and empowerment to consumers. Thus, successful exploitation of social media requires sophisticated technologies to evaluate the benefits of the interactions and potential improvement areas.

Integrating the Engagement Cycle in Consumer Marketing Strategy

Consumer interactions and engagement are the primary aspects of social media marketing. The consumer marketing strategy is based on the marketing theory that requires marketers and organizations to fully understand consumer needs before setting sales targets (Almeida et al., 2021). Implementing a consumer-centered strategy increases satisfaction and engagement, leading to advocacy and loyalty that further contributes to repeat purchases. These repetitive procedures can be understood from the seven steps in the cycle of engagement that include “connection, interaction, satisfaction, retention, commitment, advocacy and engagement” (“A customer engagement cycle for web 2.0,” 2012). The success of these phases highlights the impact of relationship marketing in contemporary marketing concepts, where promotional programs depend on various aspects such as value creation, commitment, and trust that encourage consumers to choose a particular brand over its competitors.

Connection

Consumers and organizations are connected through social networking aspects of modern marketing through social media. The global technological revolution has increased people’s access to and dependence on smartphones, tablets, and personal computers, which promote interactions and communication (Almeida et al., 2021). Social media users create online communities where they interact, share opinions and recommendations about a brand, thus, promoting e-word-of-mouth. Almeida-Santana, et al., (2018) argue that most online users value peer recommendations from online communities than organizational promotional messages. Therefore, firms must establish strategies of building trust and loyalty with their existing customers to create a positive brand image that leads to positive reviews. Similarly, social media provides an opportunity for organizations to gather consumer data needed to increase knowledge on their needs, desires, and expectations (Arbi et al., 2019). This opportunity ensures that the promotional measures implemented provide information and resources addressing their specific needs and concerns to influence behaviors and encourage positive decision-making. While social media offers a platform for consumers to connect, brands can maintain constant interactions with target consumers. These communications create multidimensional interactions that facilitate social networking.

Interaction

Social media has expanded interactions from personal networks to include multiple communication channels. The online interactions enable companies to ‘pull’ information from marketing research and ‘push’ information from consumers (“A customer engagement cycle for web 2.0,” 2012). Arbi, et al., (2019) explain that companies use social media tools to segment their markets based on factors such as demographic characteristics and behaviors to enhance marketing content and optimize digital platforms. Marketing content is defined as a communication strategy that communicates organizational values by educating target consumers without making direct sales (Bernritter et al., 2016). Organizations use this technique to provide their target consumer with educational resources offering brand information to increase awareness and encourage individual aspiration to promote the brand instead of its competitors. However, its effectiveness depends on the organization’s ability to create and deliver original, timely, relevant, and explicit content that encourages consumers to action (Arbi et al., 2019). These characteristics increase consumer engagement and online interactions. For example, a company can publish an online post providing information on a new product and its benefits to consumers (Yadav, 2017). While the post will increase awareness of the product, it also initiates conversations among target consumers that the company can use to provide further details or improve product quality or service delivery. Culotta & Cutler (2016) indicate that marketers use various content forms to deliver promotional information, including videos and images, email newsletters, podcasts, factual news, infographics, and how-to guides. The range of types of marketing content leads to varying interactions and can elicit different reactions and responses to marketing programs. Therefore, online platforms are essential elements of contemporary marketing since they promote two-way or multidimensional interactions that facilitate information flow among all trading parties.

Satisfaction

Successful and improved interactions lead to consumer satisfaction. Likes and shares on platforms such as Facebook are identified as ‘consumer endorsements’ by marketers and firms (Bernritter et al., 2016). As a result, organizational efforts are centered towards increasing consumer engagements to improve endorsements by increasing interactions with online posts. Therefore, firms and marketers have increasingly perceived social media users as critical contributors to organizational success in the contemporary business environment (Constantinides et al., 2015). Consumer marketing strategy commercializes persuasive communication that regards consumers as powerful and reliable tools of spreading the word about a brand. Bernritter et al. (2016) argue that customers are unlikely to perceive other customers’ persuasive intents and view recommendations and reviews as reliable sources of brand information. Farshid et al. (2012) further emphasize this point by indicating that social media has become critical tools of consumer empowerment. Customers become co-creators in innovation processes by voicing their ideas and opinions regarding products and services they want and desire. It enables citizen journalism, collaborative tagging, and online virtual communities that increase interactivity and promote Consumer-Generated Content (CGC) (Di Domenico & Visentin, 2020). The organizational understanding of these concepts prompts marketers to integrate consumers’ views and opinions in the marketing strategies, treating them as fundamental components of marketing and business practices. It enhances customer relations that lead to mutual benefits and understanding (Schiniotakis & Divini, 2018). Thus, unlike in traditional business processes that focused on satisfying investor needs, the current online environment has uplifted consumers’ status in organizational decision-making (Dass & Kumar, 2014). The changes from passive recipients to active contributors of value creation have significantly increased consumer satisfaction since they relate to a brand and understand their role in growing the brand. The integration of consumer values and needs in business practices increases their sense of ownership and relatedness to a brand, thus, increasing satisfaction.

Retention

Marketing theory aims to create consumer loyalty that translates to retention. Therefore, the consumer marketing strategy focuses on creating emotional connections that strengthen consumers’ relatedness to a brand (“A customer engagement cycle for web 2.0,” 2012). Although multiple studies have illustrated the significance of social media in contemporary marketing, there has been inconclusive information on its capability to enhance loyalty. For example, Almeida, et al., (2021) argue that although social media tool promotes brand positioning, market segmentation, and targeting, it has also increased competition as consumers have access to enormous information regarding various brands offering similar products. Curiosity and desire to try out different alternative products marketed online can influence consumers’ ability to maintain loyalty and commitment to a single brand. These arguments indicate the need for a tool that measures various consumer characteristics associated with retention, such as satisfaction and behaviors. Culotta & Cutler (2016) provide a perception mapping analytical tool as a practical solution since it can help marketers understand consumers’ rating of a brand and project the retention rate. Roncha & Radclyffe-Thomas (2016) recommend using social network mining in understanding social media user perceptions and attitudes towards a brand. Rather than focusing on the UGC, this methodology evaluates a brand’s online followers and keywords to generate real-time estimates of a brand’s consumer ratings. The data mined can help organizations and marketers project retention and understand consumers’ perceptions of the brand to improve promotional strategies.

Commitment

Customer commitment refers to consumers’ continuous willingness to purchase products from the same company. It can affective or calculative based on either consumers’ emotions or perceived convenience (“A customer engagement cycle for web 2.0,” 2012). While calculative commitment is based on the perceived costs of switching to alternatives, affective commitment involves psychological attachment to a brand. In exchange for customer commitment, companies must deliver innovative, quality, and affordable products and services. Therefore, the marketing strategy should include these characteristics as distinguishing aspects in its value proposition (Fournier & Avery, 2011). Commitment creates the desire to maintain and develop a relationship with a company and is dependent on a consumer’s thought process. Personal involvement makes the emotional and psychological factors needed to create good thoughts and judgment regarding a company. Dass & Kumar (2014) explain that market-based strategic thinking requires integrating the connectedness-based mindset that perceives various entities as interdependent. Consumer needs and organizational success are connected, where changes in one affect the other (Rashid et al., 2018). Executives need to understand and incorporate this aspect to develop marketing strategies that instill loyalty and commitment. Therefore, the consumer marketing strategy uses techniques that influence individual intentions to engage a company and focuses on building trust.

Advocacy

Customer advocacy is a marketing technique used to get consumers to advocate for a company’s products and services. In social media marketing, it can occur through e-word-of-mouth, likes, or shares (“A customer engagement cycle for web 2.0,” 2012). Most consumers are skeptical about online advertisements, given their rapid increase across all online platforms. Therefore, researchers indicate that customers are more likely to make purchases based on peer recommendations instead of marketing information (Ramadan, 2019). Therefore, marketers and firms focus on building trust and relationships with existing customers in the hope of transforming them into brand advocates (Gharaibeh et al., 2020). Therefore, the primary goal of consumer marketing strategy is to build long-lasting relationships that result in endorsements and positive reviews. Dass & Kumar (2014) indicate that technological developments encourage consumers to leverage the power of the internet and social media to discover and disseminate information about brands and individual purchasing and service experiences. However, the cycle of engagement indicates that advocacy is achieved by creating an environment for appropriate interactions that lead to satisfaction, retention, and commitment. Failure to successfully undergo any of these stages can negatively affect the advocacy efforts since the willingness to advocate for a brand is connected to positive experiences, attitudes, and perceptions.

Engagement

Advocacy leads to higher customer engagement since the consumer frequently interacts with peers, products, and services. At this level, the marketing firm achieves a 360-degree cycle that encourages customers to share their delight with peers and maintain loyal purchasing behaviors (“A customer engagement cycle for web 2.0,” 2012). In an ongoing company-consumer relationship, the customer consistently purchases the endorsed products or services and encourages potential clients to buy (Hashim & Ariffin, 2016). The engagement level is dependent on various factors, including trust, involvement, and perceived usefulness. Consumers are more likely to be engaged if they are loyal and committed to a brand. While attracting a customer amidst the rapid competition in online environments is challenging, retaining them after an exchange is challenging. Companies overcome this issue by creating marketing content and activities that ensure high engagement to boost loyalty (Hegyes & Farkas, 2017). The digital consumers in current markets navigate multiple channels to interact with brands and peers before making purchasing decisions (Rader et al., 2014). Therefore, although attaining the engagement level can project loyalty, retention, and commitment, it also requires creative and innovative strategies to keep the customers engaged. For instance, Culotta & Cutler (2016) indicate that consumer values, motives, and objectives keep changing, and they may affect their perceptions and interactions with a brand. The turbulent economic and social changes require organizations to maintain proactive marketing approaches that are updated and modified based on observed trends and patterns to keep pace. 

Relating Social Commerce Concept to Consumer Marketing Strategy

Social commerce is a form of electronic commerce that utilizes social media to promote online buying and selling of products and social interactions between consumers and firms. Shadkam & O’Hara (2013) describe it as a Web 2.0 phenomenon integrating the concepts of community and e-commerce. The scholars indicate that the realization of e-commerce value is dependent on the online communities that engage in social interactions to improve online purchasing experiences. Naraine, et al., (2019) indicate that the internet has created a homogeneous global consumer culture due to the commonly understood consumer behaviors and consumption-related symbols. Although consumers in social commerce do not share common behaviors and patterns, social media buying and purchasing activities have created a global demand for products and services characterized by similar signs and behaviors (Mathur, 2018). Social commerce leverages user contributions and their online activities and transactions to maximize opportunities created by new technologies. Shadkam & O’Hara (2013) identify the various social commerce dimensions that influence contemporary marketing, including social shopping, rating and review, recommendations and referrals, forums and communities, social media optimization, and social ads and applications. These dimensions are based on the fundamental components of social commerce, such as technologies, people, business strategies, and knowledge (Pelletier et al., 2021). People represent the social aspect of social commerce and include online communities, consumers, and individuals interacting with various brands online. At the same time, knowledge refers to the information and content shared online to enhance decision-making. The technology aspect involves the infrastructure and apps used to communicate, while business strategies are the models and opportunities exploited (Shadkam & O’Hara, 2013). The successful online business activity requires all these elements.

Social Shopping

Social shopping is a mimic social interaction using technology by enabling people to participate in online shopping together. Shadkam & O’Hara (2013) explain that social shopping occurs in social media stores facilitated by the social media platforms, thus, connecting millions of people with shared interests worldwide. An example of these stores is the Facebook storefront pages that allow consumers to browse products and complete transactions without leaving the platform. Shadkam & O’Hara (2013) report that 35% of active social media users are willing to purchase products from Facebook due to increased convenience and shopping experiences. Given the rapid adoption of the internet and social media as critical aspects of daily life, creating stores provides alternatives to physical shopping, which can be inconvenient and time-consuming (Moro et al., 2020). Kim, et al., (2019) explain that social media bring together global populations to form online communities that connect like-minded consumers. Social commerce capitalizes on these opportunities by focusing on consumers’ willingness to pay and changing attitudes towards e-commerce.

Rating and Review

While ratings evaluate the quality of a brand, reviews provide summaries of a product to reveal why it is recommendable. Shadkam & O’Hara (2013) identify ratings and reviews as the original social commerce tools used by consumers to provide feedback and communicate individual experiences and views. The information provided support appropriate decisions and purchasing decisions. Palalic, et al., (2020) recognize consumers’ power to influence other purchasing decisions by sharing personal knowledge, experiences, and opinions. Marketers and companies use social media platforms to provide background information about their products and services through content formats, such as video clips, images, and stories to connect with target audiences and prompt engagement (Mathur, 2018). These activities provide information that arouses consumers’ desire to share more information accumulated through research and past experiences with the brand through ratings and reviews. Shadkam & O’Hara (2013) report that 71% of online consumers identify reviews as valuable information sources and integrate them in purchasing decision-making to identify the right product. In addition, the scholars indicate that while 70% trust recommendations from unknown people, 90% are more likely to make purchasing decisions based on comments from people they know. However, these high numbers reflect on the significance of reviews as information sources in social commerce.

Additionally, companies can use ratings and reviews to improve their offerings and business processes. Integrating consumer opinions and values in product development and delivery processes can lead to a higher brand reputation, increased consumer engagement, and stimulated a desire for luxurious products (Ng, 2014). These actions create a sense of connectedness and attachment among consumers, encouraging them to share positive reviews and lead to eWOM. Shadkam & O’Hara (2013) indicate that these summaries from consumers provide insights on their needs and expectations, which can be sources of innovative ideas and opinions. Moro et al. (2020) explain that collecting consumer feedback and comments can inform managerial decisions since they indicate what pleases or displeases targeted consumers. Naraine, et al., (2019) contribute to this argument by indicating that analysing UGC can better understand online communities and their respective behaviors. Thus, reviews create an understanding of existing and potential consumers and provide data needed for improvements.

Recommendations and Referrals

In social commerce and marketing, recommendations and referrals are considered forms of consumer endorsements. Shadkam & O’Hara (2013) indicate that these social aspects of e-commerce are personalized and more persuasive since they depict consumers as brand advocates. Based on the engagement cycle, advocacy is the sixth step of consumer involvement and occurs after building trust and strong relationships with the brand. Only committed and loyal consumers become advocates for a brand since it’s based on positive experiences and perceived benefits of purchasing from a particular company. O’Shea & Alonso (2011) indicate that the primary marketing goal is to create brand loyalty that ensures a stable consumer base regardless of a product’s performance and opportunities that go beyond the company’s main product. Loyal and committed consumers are likely to support a company amidst faltering core product performance and recommend their peers (Selvanayagam & Rehman, 2019). This commitment occurs due to the emotional and psychological attachment associated with firm-consumer relationships (Palalic et al., 2020). The co-creation and high consumer engagement create a mental and emotional connection with consumers since they understand their significant roles in ensuring organizational success and survival in modern-day competitive environments. Online audiences can provide compelling personal insights that are believable and trustworthy, making them critical promotional tools (Park et al., 2021). Therefore, recommendations and referrals are considered reliable sources of product information when choosing appropriate products and services.

Forums and Communities

Online forums are discussion sites that enable consumers with shared interests to hold conversations. Shadkam & O’Hara (2013) describe them as practical and resourceful social media tools used to discover, select, and refer products during social commerce through user-generated content. The forums create a moderated environment characterized by a specific theme or groupings (Sashi, 2012). An example of these forums is brand-related Facebook groups, where consumers interested in a particular product join and participate in relevant conversations to create or access brand information. Pan, et al., (2019) indicate that consumers use these tools to share feedback regarding their experiences with products and services. Other people on the forum contribute to these discussions by offering more information, opinions, and insights that facilitate purchasing decisions. Online forums play a significant role in influencing people’s perceptions and attitudes towards a brand. Pucci, et al., (2019) classify them as network-based co-production systems where consumer behaviors and marketing strategies influence each other, leading to creativity and innovation. While consumers share experiences to influence purchasing decisions, companies can utilize the information conveyed to improve marketing campaigns, product quality, delivery techniques, and other business practices.

Online communities refer to virtual business environments where knowledge collaboration occurs. They are collective groups of organizations, entities, and people connected through electronic media to interact on shared problems or interests (Rodriguez & Peterson, 2012). Unlike transactional conversations, online communities have a higher capability of converting unique visitors into active consumers and participants (Renu et al., 2020). Since the online forums and communities involve people with shared interests and problems, the information disseminated is diverse and detailed, enabling people to make informed decisions (Ozuem et al., 2021). In addition, the members can ask questions and receive immediate responses from different people regarding a brand or a concern (Rehman et al., 2020). Therefore, these platforms have reduced consumer reliance on firm-generated content in decision-making and promoted the integration of user-generated content.

Social Media Optimization (SMO)

Companies use SMO to manage and grow their social networking sites to improve online presence and information dissemination. Shadkam & O’Hara (2013) explain that the optimization tools are used in social commerce to promote and publicize e-commerce platforms by attracting visitors through online traffic. It involves improving Search Engine Rankings (SEO) or providing direct links that link social media platforms to e-commerce platforms. Marketers often use SMO to increase product or service awareness among targeted consumers, enhance interactions, and mitigate the spread of potentially damaging news (Mickevičiute & Siudikiene, 2019). SMO and SEO have similar goals centered on generating traffic and increasing awareness of an organization’s website. Yadav, et al., (2013) indicate that social commerce involves activities occurring in Computer-Mediated Environments (CMEs). Optimization, in this case, can occur through tools such as Google and Facebook Analytics which track consumer social interactions and predict their capability to produce transactions (Kamiloğlu & Yurttaş, 2015). These tools enable customizing product-search results based on individual preferences and interests and increase website traffic and visibility.

From a marketing aspect, the customization ensures the search results and promoted websites on social media align with each consumer’s interests and preferences. Online users use multiple social media platforms for varying reasons (Zhang et al., 2017).

For instance, while Twitter can be used to disseminate news, Instagram is used to share photos and video clips. These prompt different organizations to create content shared across multiple social platforms using various internet-based tools to enhance delivery (Micík & Frankiewicz, 2015). These activities result in viral marketing, ensuring an organization’s broader reach and generating favorable responses to promotional campaigns.

Social Ads and Applications

Social commerce depends on advertising strategies implemented to attract potential customers. Shadkam & O’Hara (2013) define social ads as advertisements placed on social media platforms such as YouTube and Facebook to drive traffic towards the e-commerce platform. The advertisements provide informational resources or links to additional information used to make purchasing decisions. In addition, Zeng & Gerritsen (2014) define social apps as widgets or online applications used to promote interactions and user inputs. These aspects of social commerce provide interactive platforms used to deliver both firm-generated and consumer-generated content. However, Yang, et al., (2019) argue the prevalence of social applications has reduced administrative control on marketing strategies. With social media, consumers have access to large data volumes and have the freedom to express themselves without corporate restrictions.

These characteristics can have positive and negative implications on a firm and encourage organizational responsibility and accountability as firms are constantly under public scrutiny.

Conclusion

A consumer marketing strategy refers to techniques used to match consumer needs with products and services to maximize profits. In the last decade, technological advancements and the internet have led to higher adoption of social media platforms, which have redefined the roles of consumers in marketing. Unlike in traditional marketing, where consumers were passive recipients of promotional messages, the consumer marketing strategy focus on increasing consumer engagement and empowerment. As a result, researchers identify social media as a consumers’ product due to increased interactions and involvement. While consumers benefit from social media through recommendations, reviews, and referrals, companies benefit from feedback and opinions that facilitate gathering consumer data for improvements and innovations. However, this interdependence and mutual benefits occur when companies engage consumers through all the seven stages of the cycle of engagement. The cycle begins with establishing connections to strengthening relationships to ensure loyalty, commitment, advocacy, and engagement. They illustrate that bonding with consumers is a process involving frequent interactions and promises of mutual benefits.

Acknowledgement

We would like to express our gratitude to the Editor and the Referees. They offered extremely valuable suggestions or improvements. The authors were supported by the GOVCOPP Research Center of Universidade de Aveiro, NECE Research Center of Universidade da Beira Interior and UNIDCOM/IADE, Universidade Europeia.

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