THE IMPACT OF SOCIAL MEDIA ON ONLINE BUSINESS ASSIGNMENT COVER SHEET STUDENT DETAILS Student name: LE TRAN NHAT QUYEN UNIT AND TUTORIAL DETAILS Unit name: Academic English Tutorial/Lectur e: Lecturer or Tutor name: Mr Gabriel C Ryan Student ID number: 21000327 Unit number: AEn-T321-WSB-6 Class day and time: ASSIGNMENT DETAILS Title: Length : The impact of social media on online business Due Date 1389 date: 02/01/2022 submitted: 02/01/2022 DECLARATION I hold a copy of this assignment if the original is lost or damaged I hereby certify that no part of this assignment or product has been copied from any other student’s work or from any other source except where due acknowledgement is made in the assignment I hereby certify that no part of this assignment or product has been submitted by me in another (previous or current) assessment, except where appropriately referenced, and with prior permission from the Lecturer / Tutor / Unit Coordinator for this unit No part of the assignment/product has been written/ produced for me by any other person except where collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator concerned I am aware that this work may be reproduced and submitted to plagiarism detection software programs for the purpose of detecting possible plagiarism (which may retain a copy on its database for future plagiarism checking) Student’s signature: Nhat Quyen Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration has not been signed Le Tran Nhat Quyen-21000327 THE IMPACT OF SOCIAL MEDIA ON ONLINE BUSINESS The impact of social media on online business Le Tran Nhat Quyen Western Sydney University Vietnam AEn-T321WSB-6 Mr Gabriel C Ryan 02/01/2022 Le Tran Nhat Quyen-21000327 THE IMPACT OF SOCIAL MEDIA ON ONLINE BUSINESS The appearance of social media makes an epoch Some decades ago, people communicated with each other by handwritten letters, phone calls, or even birthday wishes that came from vintage cards In today’s world, thanks to the rapid development of Internet technology, everything becomes easier, and faster than it was about thirty years ago Specifically, social media not only changes the way people communicate but also modifies people’s shopping habits Due to the amount of time people spend on social media, businesses substitute the traditional method of selling goods with the electronic method of selling goods Thus, people using social networking for shopping are growing exponentially About 40% of social media users have purchased on social media at least once (Utz, Muscanell & Khalid, 2019) Social shopping has existed for many years, and it is also popular with consumers, so this is a potential market that any online business wants to exploit and access Upon these analyses, social media has an important influence on online businesses, especially it can help them easily go viral their brands, interact with their customers, as well as manage time and resources As a result of their speed, and the fact that they make sharing easy, social networking websites are an ideal tool to create a viral brand According to Arul Jothi and Mohmadraj Gaffoor’s survey (2017), about 83% of respondents spend from to hours per day on social platforms, and slightly under half of the respondents (43%) are following more than three brands in social media A well-structured social networking strategy plays a crucial role in an online business’s development and success Through popular platforms like Facebook, Instagram, or TikTok, online businesses can upload numerous creative and unique contents which are viral videos, pictures, posts, or slogans which are viruses that marketers create to increase their brand recognition and visibility In fact, consumers who have not heard about the brand have the opportunity to know about its product and service provided through the company’s official social media accounts, or sharing of their friend lists Additionally, when more people know about the brand, the probability that shoppers will inquire, and have an interest in the business’s product and value also increases Le Tran Nhat Quyen-21000327 THE IMPACT OF SOCIAL MEDIA ON ONLINE BUSINESS Many people argue that social platforms have an important contribution to viral online business's brand but in some cases, the users are aware from the first moment they are watching advertisements or branded products Some people think that this is unreliable advertising, and the qualification of products does not deserve their good reputation This thought is not completely wrong, but we can also not deny the invaluable impacts of social media on online business Brand awareness is the most successful of an online company’s social media marketing There are 31% of Internet users aged 16-24 in the survey who learn more about a product, or brand through social media advertisements (Isaac & Malthouse, 2018) Moreover, Saravanakumar and Suganthalakshmi (2012) showed that Facebook, and other social networking sites are certain to bring in more clients as well as additional promotions, and marketing for the company When a company applies any content on social media, it is important to be careful that the buyers not feel tricked, or cheated In brief, social networking websites are diverse fertile lands that any online business wants to take full advantage of to build up their brand Hence, social platforms allow users to interact directly with entrepreneurs In specific, online business was based on interaction, which is a trademark of social networking, and seriously missing in traditional marketing Through social media, clients not only ask questions but also give relevant suggestions which can build a long-term relationship for business According to Clemons et al (2006), customer feedback can have a favorable influence on product sales growth For example, numerous websites offer buyers the opportunity to give feedback on a business’s products and services through numerical star ratings, or open-ended questions These reviews will help other purchasers decide whether the product is worth buying Furthermore, online reviews have the power to attract more customers visiting the website, increase customer services To illustrate, according to consumer socialization theory, consumer communication has an impact on their cognitive, emotional, and behavioral views (Ward, 1974) In addition, those negative feedbacks also help businesses improve the quality of their products in time Le Tran Nhat Quyen-21000327 THE IMPACT OF SOCIAL MEDIA ON ONLINE BUSINESS Trust is important in every business; however, audience bias is the top concern These days, some companies hire influencers and offer them to give positive feedback for their products and the expectations of consumers Therefore, those reviews are biased and unreliable information, which affects loyalty, and creates a community among frequent shoppers (Mudambi & Schuff, 2010) After reading winged reviews, clients will believe that those products are effective for them, but in reality, when they use the product or service, they get disappointed Nonetheless, customer service is one of the things that an online business concentrates on most If a company has a professional marketing strategy on social media, they will spend time building up the customers’ satisfaction Specifically, buyers can easily get honest advice, then decide to purchase if they think that the brand can fulfill their demand Furthermore, a good service not only creates the popularity of an online brand but also attracts several potential consumers To sum up, social platforms can help both users and businesses to know about each other through customer feedback and customer service On the other hand, saving time and money is the first of any online business, which is the outstanding point of social media While some businesses may pay millions of dollars for traditional channels like printer advertising, billboard rental, or broadcast, social media marketing is totally free Because online advertising is interactive and provides rich multimedia, many firms allocate their marketing budget to it (Li et al., 2009) Only needing an official social media account, they can upload various contents on social platforms without spending a single cent For instance, Facebook is free to create a business profile and post content daily Besides, there are millions of social media users, and when they know about a certain brand, they are willing to tell their friends, or their family about it without being forced to so, or paid to so Word of mouth marketing is the secret power of social media, which can help several online businesses save their budget on advertising (HennigThurau et al., 2004) Moreover, Susanto et al (2021) highlighted that online businesses will be less time-consuming in capturing the market, knowing their customers’ satisfaction Le Tran Nhat Quyen-21000327 THE IMPACT OF SOCIAL MEDIA ON ONLINE BUSINESS However, the biggest negatives of this are security, and lacking information issues Some opponents might state that hackers can break into any account and steal valuable data like customer’s information, or company’s confidential information In addition, enterprise systems are easily gained access, or worse, online businesses will be blackmailed by hackers Today's financially motivated hackers are more attracted to the sensitive information that internet firms demand (Rechardson, 2007) While this may be so, several companies are using full backup systems, or offline systems for denying leaking out their customer’s purchase information, or important data To actively engage in cybercrime, online businesses prepare for specialist skills that are programming understanding, or digital forensics (Hadlington, 2018) Besides, cybersecurity laws have been imposed Thanks to these laws, both users and online businesses will be protected from privacy-related issues and leaking their information It is obvious that saving time and budget is a hallmark of social media for businesses online In conclusion, social marketing for online businesses is gradually becoming widespread These days, the use of social media as a marketing tool has the potential to be lucrative A wellplanned social media campaign not only helps the company's brand rapidly go viral but also allows the greater interaction between businesses and shoppers as well as more imperative-saving time and money for the brands’ advertisements In the digital world, social platforms have become a part of the online business because social networking is a fertile platform to attract numerous customers Despite these limitations, online marketing has driven most online firms forward and made it easier for people to shop now If used correctly, social media can create the necessary tool for most online businesses to have competitive advantages and strengthen brand equity Therefore, digital marketing is projected to become an increasingly important part of the online business world Le Tran Nhat Quyen-21000327 THE IMPACT OF SOCIAL MEDIA ON ONLINE BUSINESS REFERENT LIST Arul Jothi, C., & Mohmadraj Gaffoor, A (2017) IMPACT OF SOCIAL MEDIA IN ONLINE SHOPPING ICTACT Journal on Management Studies, 3(3), 576–586 https://doi.org/10.21917/ijms.2017.0079 Clemons, E., Gao, G., & Hitt, L (2006) When Online Reviews Meet Hyperdifferentiation: A Study of the Craft Beer Industry Journal of Management Information Systems, (23:2), 149-171 Hadlington, L J (2018) Employees Attitudes towards Cyber Security and Risky Online Behaviours: An Empirical Assessment in the United Kingdom Dora.dmu.ac.uk http://hdl.handle.net/2086/16801 Hennig-Thurau, T., Gwinner, K P., Walsh, G., & Gremler, D D (2004b) Electronic word-of-mouth via consumer-opinion platforms: What motivates consumers to articulate themselves on the Internet? Journal of Interactive Marketing, 18(1), 38–52 https://doi.org/10.1002/dir.10073 Issac, M., & Malthouse, T (2018) Social media: The future of marketing International Journal of Contemporary Research and Review, 8(4), 40-43 Lee, M., & Lee, J (2010) The impact of information security failure on customer behaviors: A study on a large-scale hacking incident on the internet Information Systems Frontiers, 14(2), 375– 393 https://doi.org/10.1007/s10796-010-9253-1 Li, H., Li, A., Zhao, S (2009) Internet advertising strategy of multinationals in China Int J Advert, 28(1), 125-146 Le Tran Nhat Quyen-21000327 THE IMPACT OF SOCIAL MEDIA ON ONLINE BUSINESS Mudambi, S., & Schuff, D (2010) Research Note: What Makes a Helpful Online Review? A Study of Customer Reviews on Amazon.com MIS Quarterly, 34(1), 185 https://doi.org/10.2307/20721420 Saravanakumar, M., & Suganthalakshmi, T (2012) Social media marketing Life Science Journal, 9(4), 4444–4451 https://doi.org/10.7537/marslsj090412.670 Susanto, H., Fang Yie, L., Mohiddin, F., Rahman Setiawan, A A., Haghi, P K., & Setiana, D (2021) Revealing Social Media Phenomenon in Time of COVID-19 Pandemic for Boosting Start-Up Businesses through Digital Ecosystem Applied System Innovation, 4(1), https://doi.org/10.3390/asi4010006 Utz, C., Muscanell, P., Khalid,Q., et al (2019) Ultimate guide to social media marketing (Illustrated ed.) Entrepreneur Press Ward, S (1974) Consumer Socialization Journal of Consumer Research, 1(2), https://doi.org/10.1086/208584 Le Tran Nhat Quyen-21000327 THE IMPACT OF SOCIAL MEDIA ON ONLINE BUSINESS Le Tran Nhat Quyen-21000327 ... Consumer Research, 1(2), https://doi.org/10.1086/208584 Le Tran Nhat Quyen- 21000327 THE IMPACT OF SOCIAL MEDIA ON ONLINE BUSINESS Le Tran Nhat Quyen- 21000327 ... impact of social media on online business Le Tran Nhat Quyen Western Sydney University Vietnam AEn-T321WSB-6 Mr Gabriel C Ryan 02/01/2022 Le Tran Nhat Quyen- 21000327 THE IMPACT OF SOCIAL MEDIA ON... (2021) highlighted that online businesses will be less time-consuming in capturing the market, knowing their customers’ satisfaction Le Tran Nhat Quyen- 21000327 THE IMPACT OF SOCIAL MEDIA ON ONLINE