FROM LIKES TO SALES: STUDY ON ENHANCING SOCIAL MEDIA PERFORMANCE FOR INDONESIAN SMES

Authors

  • M. Rifqy Roosdhani Universitas Diponegoro (UNDIP), Semarang and Universitas Islam Nahdlatul Ulama Jepara, Indonesia
  • Naili Farida Universitas Diponegoro (UNDIP), Semarang, Indonesia
  • Farida Indriani Universitas Diponegoro (UNDIP), Semarang, Indonesia

DOI:

https://doi.org/10.33736/ijbs.6407.2023

Keywords:

social media marketing strategy, social media-based customer engagement, brand exposure, social media performance, small and medium enterprises

Abstract

Since 2010, social media use for business purposes has seen tremendous expansion. Businesses that implement a solid social media marketing plan may see enhanced results through improved performance on these channels. Though businesses increasingly rely on intuitive and trial-and-error techniques when developing their social media marketing strategy, we identify effective marketing strategies designed for Small and Medium-Sized Enterprises (SMEs) to optimize social media performance. As part of their marketing strategies, SMEs should moderate social media-based customer engagement to achieve maximum leverage. Our study employed quantitative purposive sampling to collect and analyze data from 265 food and beverage SMEs located in Solo, Semarang, Kudus and Jepara. Afterward, we utilized Structural Equation Modelling AMOS data collected through a questionnaire to test our empirical model and validate its prediction capabilities. Our findings demonstrate how effective social media marketing strategies can increase customer engagement with social media-based customer interactions and positively affect performance on these channels. Furthermore, SMEs should utilize brand exposure strategies through social media marketing in order to further boost social media-based customer interactions.

References

Ananda, A. S., Hernández-García, Á., & Lamberti, L. J. I. J. o. W. B. C. (2017). SME fashion brands and social media marketing: From strategies to actions. 13(4), 468-498. doi:10.1504/ijwbc.2017.10008795 Ananda, A. S., Hernández-García, Á., Lamberti, L. J. J. o. I., & Knowledge. (2016). N-REL: A comprehensive framework of social media marketing strategic actions for marketing organizations. 1(3), 170-180. doi: https://doi.org/10.1016/j.jik.2016.01.003

https://doi.org/10.1016/j.jik.2016.01.003

Andzulis, J. M., Panagopoulos, N. G., Rapp, A. J. J. o. p. s., & management, s. (2012). A review of social media and implications for the sales process. 32(3), 305-316. doi:10.2753/PSS0885-3134320302

https://doi.org/10.2753/PSS0885-3134320302

Arora, L., Singh, P., Bhatt, V., & Sharma, B. J. J. o. D. S. (2021). Understanding and managing customer engagement through social customer relationship management. 30(2-3), 215-234. doi:https://doi.org/10.1080/12460125.2021.1881272

https://doi.org/10.1080/12460125.2021.1881272

Brodie, R. J., Hollebeek, L. D., Jurić, B., & Ilić, A. J. J. o. s. r. (2011). Customer engagement: Conceptual domain, fundamental propositions, and implications for research. 14(3), 252-271. doi:10.1177/1094670511411703

https://doi.org/10.1177/1094670511411703

Carlson, J., Rahman, M. M., Taylor, A., & Voola, R. (2019). Feel the VIBE: Examining value-in-the-brand-page-experience and its impact on satisfaction and customer engagement behaviours in mobile social media. Journal of Retailing and Consumer Services, 46, 149-162. doi:https://doi.org/10.1016/j.jretconser.2017.10.002

https://doi.org/10.1016/j.jretconser.2017.10.002

Chatterjee, S., & Kar, A. K. J. I. J. o. I. M. (2020). Why do small and medium enterprises use social media marketing and what is the impact: Empirical insights from India. 53, 102103. doi:https://doi.org/10.1016/j.ijinfomgt.2020.102103

https://doi.org/10.1016/j.ijinfomgt.2020.102103

Choi, Y., & Thoeni, A. J. E. B. R. (2016). Social media: is this the new organizational stepchild?. doi: 10.1108/EBR-05-2015-0048

https://doi.org/10.1108/EBR-05-2015-0048

Dahnil, M. I., Marzuki, K. M., Langgat, J., & Fabeil, N. F. (2014). Factors Influencing SMEs Adoption of Social Media Marketing. Procedia - Social and Behavioral Sciences, 148, 119-126. doi:https://doi.org/10.1016/j.sbspro.2014.07.025

https://doi.org/10.1016/j.sbspro.2014.07.025

de Oliveira Santini, F., Ladeira, W. J., Pinto, D. C., Herter, M. M., Sampaio, C. H., & Babin, B. J. J. J. o. t. A. o. M. S. (2020). Customer engagement in social media: a framework and meta-analysis. 48(6), 1211-1228. doi:https://doi.org/10.1007/s11747-020-00731-5

https://doi.org/10.1007/s11747-020-00731-5

Dessart, L., Veloutsou, C., & Morgan-Thomas, A. J. J. o. M. M. (2016). Capturing consumer engagement: duality, dimensionality and measurement. 32(5-6), 399-426. doi:http://dx.doi.org/10.1080/0267257X.2015.1130738

https://doi.org/10.1080/0267257X.2015.1130738

Dijkmans, C., Kerkhof, P., Buyukcan-Tetik, A., & Beukeboom, C. J. (2015). Online Conversation and Corporate Reputation: A Two-Wave Longitudinal Study on the Effects of Exposure to the Social Media Activities of a Highly Interactive Company. Journal of Computer-Mediated Communication, 20(6), 632-648. doi:10.1111/jcc4.12132

https://doi.org/10.1111/jcc4.12132

Dutot, V., Bergeron, F. J. J. o. s. b., & development, e. (2016). From strategic orientation to social media orientation: Improving SMEs' performance on social media. doi: 10.1108/jsbed-11-2015-0160

https://doi.org/10.1108/JSBED-11-2015-0160

Ebrahim, R. S. J. J. o. R. M. (2020). The role of trust in understanding the impact of social media marketing on brand equity and brand loyalty. 19(4), 287-308. doi:https://doi.org/10.1080/15332667.2019.1705742

https://doi.org/10.1080/15332667.2019.1705742

Effing, R., & Spil, T. A. J. I. j. o. i. m. (2016). The social strategy cone: Towards a framework for evaluating social media strategies. 36(1), 1-8. doi:http://dx.doi.org/10.1016/j.ijinfomgt.2015.07.009

https://doi.org/10.1016/j.ijinfomgt.2015.07.009

Fang, X., Singh, S., Ahluwalia, R., Dawn Iacobucci served as, e., & Mary Frances Luce served as associate editor for this, a. (2007). An Examination of Different Explanations for the Mere Exposure Effect. Journal of Consumer Research, 34(1), 97-103. doi:10.1086/513050 Ferdinand, A. (2014). Metode penelitian manajemen: Pedoman penelitian untuk penulisan skripsi tesis dan desrtasi ilmu manajemen.

https://doi.org/10.1086/513050

Fisher, T. J. J. o. d. m., & management, c. s. (2009). ROI in social media: A look at the arguments. 16(3), 189-195. doi:10.1057/dbm.2009.16

https://doi.org/10.1057/dbm.2009.16

Garg, P., Gupta, B., Dzever, S., Sivarajah, U., & Kumar, V. J. I. j. o. i. m. (2020). Examining the relationship between social media analytics practices and business performance in the Indian retail and IT industries: The mediation role of customer engagement. 52, 102069. doi:https://doi.org/10.1016/j.ijinfomgt.2020.102069

https://doi.org/10.1016/j.ijinfomgt.2020.102069

Gensler, S., Völckner, F., Liu-Thompkins, Y., & Wiertz, C. J. J. o. i. m. (2013). Managing brands in the social media environment. 27(4), 242-256. doi:http://dx.doi.org/10.1016/j.intmar.2013.09.004

https://doi.org/10.1016/j.intmar.2013.09.004

Guha, S., Harrigan, P., Soutar, G. J. J. o. S. B., & Entrepreneurship. (2018). Linking social media to customer relationship management (CRM): a qualitative study on SMEs. 30(3), 193-214. doi:https://doi.org/10.1080/08276331.2017.1399628

https://doi.org/10.1080/08276331.2017.1399628

Harmeling, C. M., Moffett, J. W., Arnold, M. J., & Carlson, B. D. J. J. o. t. A. o. m. s. (2017). Toward a theory of customer engagement marketing. 45(3), 312-335. doi:10.1007/s11747-016-0509-2

https://doi.org/10.1007/s11747-016-0509-2

Harrigan, P., & Miles, M. J. S. E. R. (2014). From e-CRM to s-CRM. Critical factors underpinning the social CRM activities of SMEs. 21(1), 99-116. doi:10.1080/13215906.2014.11082079

https://doi.org/10.1080/13215906.2014.11082079

Helal, G., Ozuem, W., Lancaster, G. J. I. J. o. R., & Management, D. (2018). Social media brand perceptions of millennials. 10.1108/IJRDM-03-2018-0066. doi:10.1108/IJRDM-03-2018-0066

https://doi.org/10.1108/IJRDM-03-2018-0066

Hinson, R., Boateng, H., Renner, A., & Kosiba, J. P. B. J. J. o. R. i. I. M. (2019). Antecedents and consequences of customer engagement on Facebook: An attachment theory perspective. 13(2), 204-226. doi:10.1108/JRIM-04-2018-0059

https://doi.org/10.1108/JRIM-04-2018-0059

Hollebeek, L. D., Glynn, M. S., & Brodie, R. J. J. J. o. i. m. (2014). Consumer brand engagement in social media: Conceptualization, scale development and validation. 28(2), 149-165. doi:http://dx.doi.org/10.1016/j.intmar.2013.12.002

https://doi.org/10.1016/j.intmar.2013.12.002

Hollebeek, L. D., Sprott, D. E., Andreassen, T. W., Costley, C., Klaus, P., Kuppelwieser, V., . . . Rather, R. A. J. E. J. o. M. (2019). Customer engagement in evolving technological environments: synopsis and guiding propositions. 10.1108/EJM-09-2019-970. doi:10.1108/EJM-09-2019-970

https://doi.org/10.1108/EJM-09-2019-970

Humphrey Jr, W. F., Laverie, D. A., & Rinaldo, S. B. J. J. o. R. i. I. M. (2017). Brand choice via incidental social media exposure. 10.1108/JRIM-04-2016-0025. doi:10.1108/JRIM-04-2016-0025

https://doi.org/10.1108/JRIM-04-2016-0025

Kahn, W. A. J. A. o. m. j. (1990). Psychological conditions of personal engagement and disengagement at work. 33(4), 692-724. doi:https://doi.org/10.5465/256287

https://doi.org/10.5465/256287

Kim, W. G., Lim, H., & Brymer, R. A. J. I. J. o. H. M. (2015). The effectiveness of managing social media on hotel performance. 44, 165-171. doi:http://dx.doi.org/10.1016/j.ijhm.2014.10.014

https://doi.org/10.1016/j.ijhm.2014.10.014

Kumar, A., Bezawada, R., Rishika, R., Janakiraman, R., & Kannan, P. J. J. o. m. (2016). From social to sale: The effects of firm-generated content in social media on customer behavior. 80(1), 7-25. doi:10.1509/jm.14.0249

https://doi.org/10.1509/jm.14.0249

Kumar, V., Aksoy, L., Donkers, B., Venkatesan, R., Wiesel, T., & Tillmanns, S. J. J. o. s. r. (2010). Undervalued or overvalued customers: Capturing total customer engagement value. 13(3), 297-310. doi:10.1177/1094670510375602 Kumar, V., Bhaskaran, V., Mirchandani, R., & Shah, M. J. M. S. (2013). Practice prize winner-creating a measurable social media marketing strategy: increasing the value and ROI of intangibles and tangibles for hokey pokey. 32(2), 194-212. doi: https://doi.org/10.1287/mksc.1120.0768

https://doi.org/10.1287/mksc.1120.0768

Lee, J., Park, C. J. A. P. J. o. M., & Logistics. (2021). Customer engagement on social media, brand equity and financial performance: a comparison of the US and Korea. 10.1108/APJML-09-2020-0689. doi:10.1108/APJML-09-2020-0689

https://doi.org/10.1108/APJML-09-2020-0689

Li, F., Larimo, J., & Leonidou, L. C. J. J. o. t. A. o. M. S. (2021). Social media marketing strategy: definition, conceptualization, taxonomy, validation, and future agenda. 49(1), 51-70. doi: 10.1007/s11747-020-00733-3

https://doi.org/10.1007/s11747-020-00733-3

Liu, X., Shin, H., & Burns, A. C. (2021). Examining the impact of luxury brand's social media marketing on customer engagement: Using big data analytics and natural language processing. Journal of Business Research, 125, 815-826. doi:https://doi.org/10.1016/j.jbusres.2019.04.042

https://doi.org/10.1016/j.jbusres.2019.04.042

Marchand, A., Hennig-Thurau, T., & Flemming, J. J. I. J. o. R. i. M. (2021). Social media resources and capabilities as strategic determinants of social media performance. 38(3), 549-571. doi:https://doi.org/10.1016/j.ijresmar.2020.09.011

https://doi.org/10.1016/j.ijresmar.2020.09.011

McCarthy, J., Rowley, J., Keegan, B. J. J. S., & Society. (2022). Social media marketing strategy in English football clubs. 23(4-5), 513-528.doi: 10.1080/14660970.2022.2059872

https://doi.org/10.1080/14660970.2022.2059872

Michaelidou, N., Siamagka, N. T., & Christodoulides, G. (2011). Usage, barriers and measurement of social media marketing: An exploratory investigation of small and medium B2B brands. Industrial Marketing Management, 40(7), 1153-1159. doi:https://doi.org/10.1016/j.indmarman.2011.09.009

https://doi.org/10.1016/j.indmarman.2011.09.009

Micu, A., Micu, A. E., Geru, M., Lixandroiu, R. C. J. P., & Marketing. (2017). Analyzing user sentiment in social media: Implications for online marketing strategy. 34(12), 1094-1100.doi: https://doi.org/10.1002/mar.21049

https://doi.org/10.1002/mar.21049

Mora Cortez, R., Johnston, W. J., & Ghosh Dastidar, A. (2023). Managing the content of LinkedIn posts: Influence on B2B customer engagement and sales? Journal of Business Research, 155, 113388. doi:https://doi.org/10.1016/j.jbusres.2022.113388

https://doi.org/10.1016/j.jbusres.2022.113388

Oberoi, P., Patel, C., & Haon, C. (2017). Technology sourcing for website personalization and social media marketing: A study of e-retailing industry. Journal of Business Research, 80, 10-23. doi:https://doi.org/10.1016/j.jbusres.2017.06.005

https://doi.org/10.1016/j.jbusres.2017.06.005

Patma, T. S., Wardana, L. W., Wibowo, A., Narmaditya, B. S., Akbarina, F. J. C. B., & Management. (2021). The impact of social media marketing for Indonesian SMEs sustainability: Lesson from Covid-19 pandemic. 8(1), 1953679. doi:10.1080/23311975.2021.1953679

https://doi.org/10.1080/23311975.2021.1953679

Phan, M., Thomas, R., & Heine, K. J. J. o. G. F. M. (2011). Social media and luxury brand management: The case of Burberry. 2(4), 213-222. doi:10.1080/20932685.2011.10593099

https://doi.org/10.1080/20932685.2011.10593099

Tafesse, W., & Wien, A. J. J. o. M. M. (2018). Implementing social media marketing strategically: an empirical assessment. 34(9-10), 732-749. doi:10.1080/0267257X.2018.1482365

https://doi.org/10.1080/0267257X.2018.1482365

Tajvidi, R., & Karami, A. J. C. i. H. B. (2021). The effect of social media on firm performance. 115, 105174. doi:https://doi.org/10.1016/j.chb.2017.09.026

https://doi.org/10.1016/j.chb.2017.09.026

Tarsakoo, P., & Charoensukmongkol, P. J. J. o. A. B. S. (2019). Dimensions of social media marketing capabilities and their contribution to business performance of firms in Thailand. 10.1108/JABS-07-2018-0204. doi:10.1108/JABS-07-2018-0204 Trainor, K. J. J. J. o. P. S., & Management, S. (2012). Relating social media technologies to performance: A capabilities-based perspective. 32(3), 317-331. doi:10.2753/PSS0885-3134320303

https://doi.org/10.2753/PSS0885-3134320303

Valos, M. J., Mavondo, F. T., & Nyadzayo, M. W. J. J. o. S. M. (2019). How do alternative strategic orientations influence social media performance? , 27(1), 1-20. doi:10.1080/0965254X.2017.1384039

https://doi.org/10.1080/0965254X.2017.1384039

Wang, T., & Lee, F.-Y. (2020). Examining customer engagement and brand intimacy in social media context. Journal of Retailing and Consumer Services, 54, 102035. doi:https://doi.org/10.1016/j.jretconser.2020.102035

https://doi.org/10.1016/j.jretconser.2020.102035

Wang, W. Y., Pauleen, D. J., & Zhang, T. J. I. M. M. (2016). How social media applications affect B2B communication and improve business performance in SMEs. 54, 4-14. doi : http://dx.doi.org/10.1016/j.indmarman.2015.12.004

https://doi.org/10.1016/j.indmarman.2015.12.004

Wiwoho, G., Suroso, A., & Wulandari, S. J. M. S. L. (2020). Linking adaptive capability, product innovation and marketing performance: results from Indonesian SMEs. 10(10), 2379-2384. doi:10.5267/j.msl.2020.2.027

https://doi.org/10.5267/j.msl.2020.2.027

Zhang, M., Guo, L., Hu, M., & Liu, W. (2017). Influence of customer engagement with company social networks on stickiness: Mediating effect of customer value creation. International Journal of Information Management, 37(3), 229-240. doi:https://doi.org/10.1016/j.ijinfomgt.2016.04.010

https://doi.org/10.1016/j.ijinfomgt.2016.04.010

Zollo, L., Filieri, R., Rialti, R., & Yoon, S. (2020). Unpacking the relationship between social media marketing and brand equity: The mediating role of consumers' benefits and experience. Journal of Business Research, 117, 256-267. doi:https://doi.org/10.1016/j.jbusres.2020.05.001

https://doi.org/10.1016/j.jbusres.2020.05.001

Downloads

Published

2023-12-26

How to Cite

M. Rifqy Roosdhani, Naili Farida, & Farida Indriani. (2023). FROM LIKES TO SALES: STUDY ON ENHANCING SOCIAL MEDIA PERFORMANCE FOR INDONESIAN SMES. International Journal of Business and Society, 24(3), 1157–1172. https://doi.org/10.33736/ijbs.6407.2023