NATIONAL ECONOMICS UNIVERSITYFACULTY OF FOREIGN LANGUAGESDEPARTMENT OF BUSINESS ENGLISHTRAN TUYET MAI A STUDY ON THE INFLUENCE OF SOCIAL MEDIA MARKETINGACTIVITIES ON CUSTOMER LOYALTY TOW
Trang 1NATIONAL ECONOMICS UNIVERSITYFACULTY OF FOREIGN LANGUAGESDEPARTMENT OF BUSINESS ENGLISH
TRAN TUYET MAI
A STUDY ON THE INFLUENCE OF SOCIAL MEDIA MARKETINGACTIVITIES ON CUSTOMER LOYALTY TOWARDS HOMEWEAR
PRODUCTS IN NARYLEE COMPANY LIMITED
Trang 2NATIONAL ECONOMICS UNIVERSITYFACULTY OF FOREIGN LANGUAGESDEPARTMENT OF BUSINESS ENGLISH
TRAN TUYET MAI
A STUDY ON THE INFLUENCE OF SOCIAL MEDIA MARKETINGACTIVITIES ON CUSTOMER LOYALTY TOWARDS HOMEWEAR
PRODUCTS IN NARYLEE COMPANY LIMITED
Hanoi, March 2023
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ACKNOWLEDGEMENT
First and foremost, I would like to thank my research supervisor, Dr TranThi Dan Huyen from the Faculty of Foreign Languages at National EconomicsUniversity Without her assistance and dedicated involvement in every stepthroughout the process, this report could have never been accomplished I amextremely grateful to you for supporting and understanding me during the past
time
The internship opportunity I had with Narylee Ltd was a great chance forlearning and professional development Therefore, I consider myself as a luckyindividual as I was provided with an opportunity to be a part of it I am alsograteful for having a chance to meet so many wonderful people and professionalswho led me through this internship period
Bear in mind previous I am using this opportunity to express my deepest
gratitude and special thanks to Ms Pham Thi Bich Hue and Ms Tran Thi Quynh Narylee Ltd Marketing Leader who in spite of being extraordinarily busy with
-their duties, took time out to hear, guide and keep me on the correct path and give
necessary advices and guidance
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EXECUTIVE SUMMARY
The objective of this study is to analyze the influence of social mediamarketing activities on customer loyalty toward homewear products in NaryleeCompany Limited Some prior literature was analyzed to emphasize the crucialissues in this Graduation Internship Report In which, six main components ofsocial media marketing activities were focused on, including Entertainment,Interaction, Trendiness, Customization, Word Of Mouth and Promotion The datawas collected via questionnaire, with the participation of 100 customers of
Narylee Company Limited Data gathered then analyzed using SPSS version 20
Results presents that Customization, Promotion and Entertainment are the mostsignificant drivers of customer loyalty, while the lowest ones was the Word OfMouth, Interaction and Trendiness All the results were discussed to proposeseveral recommendations to improve the social media marketing activities atNarylee Company Limited
ii
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SEM: Search Engine Marketing
SEO: Search Engine Optimization
SPSS: Statistical Package for Social Sciences
TRE: Trendiness
WOM: Word Of Mouth
ii
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LIST OF FIGURES
Figure 1 Proportion of active online shoppers conducting at least
one online purchase every 2 months -<cccssssssss* 1 Figure 2 Number of digital buyers worldwide from 2014 to 2021 1
Figure 3 Number of smartphone uS€rS . - << 2Figure 4 Narylee Ltd.’s company strucfUre ‹ - 12 Figure 5 Proposed research framewOork cà 26Figure 6 Duration of using social media platforms - 32Figure 7 Frequency of using social media pÏatforms 33Figure 8 Years of relationship with Narylee cc.ccccc s2 33Figure 9 Social media platforms for interaction with Narylee 34
Figure 10 Frequency of using social media platforms for interacting with
iv
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LIST OF TABLES
Table 1 Range Interval DIVISION - c c2 29
Table 2 Demographics of respondenfs -. - 31
Table 3 Mean scores for Entertainment component 35
Table 4 Mean scores for Interaction compOnent( - 37
Table 5 Mean scores for Trendiness component - 39
Table 6 Mean scores for Customization component 41
Table 7 Mean scores for WOM component 43
Table 8 Mean scores for Promotion component 44
Table 9 Mean scores for Overall componenfs .-:- 46
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TABLE OF CONTENTS
EXECUTIVE SUMMARYY co c cọ HH SH HH ni Ki Hình ni BA iiLIST OF ABBREVLA TÍON o 55G 5< s9 TH 00 10100 HiLIST OF EIGURES - - -c c cọ HH Họ HH ni Hi HH Hi Bi 0 E8 ivLIST OF TABLES - - - - c GB SH Họ Ki Họ Ki Ki BH Ki Bi Bi i9 MINTRODUCTION -.- cọ KH KH HH Ki Bề 1
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6 Research methodology .- - sec c sóc cm 9 9n Kim 0 1 n8 5
7 Research sfruC(UF€ on con n9 HH HH ni HH Hi Hinh nh Bi 6CHAPTER 1: INTRODUCTION OF NARYLEE COMPANY LIMITED 7
1.1 Overview of Narylee Company ILÏINÏ(€C o5 <5 5 5 5s 55555 556896896 7
1.1.1 Narylee's Mission, Vision and Core (ŒHW€S <5 << << S s3 3E s+ 8 I1 na ốốố 11 1.1.3 (a0 61, an n 11 1.2 Company SÍTUCẦUIT 0 6 5 6 %9 9 %8 89 894 99.9894 98994.9804.9894.080.94008094089658 12
1.3 Marketing Department in Narylee Company Limited 12
CHAPTER 2: THEORETICAL FRAMEWORK << se 14
2.1 Social medlia - - - co c c9 HH HH HH Họ Ki Ki Ki Bi Hi Bi i90 14
2.1.1 Definition of Social II€đÏÏAG - cc < «c9 S996 09090 0V 1 09 1 1 142.1.2 Social media in fahsion [HẨUSÍTV co cm n1 n ni nen152.2 Social Media ma k€fÏTE s- <5 << 5 s0 0010000091084 17
2.2.1 Definition of social media IATFK©ẨLH o5 << 1 1 95 981 89 5e 172.2.2 Components of social media HIAT€ÍTE o G5 S11 1 n1 tre 182.2.3 The importance of social media IHATK€ÍTHE o- s55 << sen me 222.3 Overview of customer ÏOiAÌÏẨy o- <5 << 5s 9 TH 00 0000600 232.4 The influence of social media marketing on customer loyaÌfy - 24
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CHAPTER 3: RESEARCH METHODOLOGY 5 << eS.Sesseesee 27
3.1 Data SOUTCS có G5 5 nụ TH c0 0 0 0 0000000900960 0950096 000 273.2 Data collection insfrumenfS . - «c5 c1 1 1n 1n 19 56 273.2 Data analyzing me(hod - << c2 9 9 S0 0 Vi 11 1Ý 16 1151 29KK6Wx ¿on nẽe ốe 29CHAPTER 4: FINDINGS AND DISCUSSION on n1 ngu” 31
4.1 The reality of social media o - <5 << 5 S 9 9.9 0H 00900880 688006866 31
4.1.1 Demographics Of SOCIAL MeCdIA ú co < 6s << 999 8 998995896989996089968846988896086996 314.1.2 The reality of social media marketing activities in Narylee Lid 324.2 The influence of social media marketing activities on customer loyalty
towards homewear products in Narylee Company Limited - -ss- « 35
4.2.1 The influence of Environment component on customer loyaltytowards homewear products in Narylee Company LIIHẲÉ€(Ï es«=<ss<<se=s 35
4.2.2 The influence of Interaction component on customer loyalty towards homewear products in Narylee Company Limited ssscssccsssssssssccssssssssscssesssscseees 37
4.2.3.The influence of Trendiness component on customer loyalty towardshomewear products in Narylee Company LÍTHÍÍ€(Í, c << ssss=ssesssesseeee 39
4.2.4 The influence of Customization component on customer loyaltytowards homewear products in Narylee Company LHẲ€(Ï e-s«<<s==<se=s 414.2.5 The influence of Word of Mouth component on customer loyalty
towards homewear products in Narylee Company Liừmif€d «‹«=<434.2.6 The influence of Promotion component on customer loyalty
towards homewear products in Narylee Company Limif€d <-«- 45CHAPTER 5: RECOMMENDA TIONS - SA nen 47
5.1 Recommendations for Entertainment C0ompOTRÍ << 55 << 55s <sess 475.2 Recommendation for Interaction C0mpDOTI€TIÍ s5 << 5 5< 5e s99 475.3 Recommendation for Trendiness componen(f -.‹ - ‹ « «« «<< 48 5.4 Recommendation for Customization componenf - - <«<«495.5 Recommendation for Word Of Mouth component - 495.6 Recommendation for Promotion comp0nen( - - -‹ < « ‹ « «« « «« «<<50
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CONCLUSION
REEERENCES
APPENDIX
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INTRODUCTION
1 Background
The Internefs quick expansion in today’s culture has changed howcompanies engage with their customers In today’s society, the rapiddevelopment of the Internet has altered how businesses interact with theircustomers Customers would prefer to stay at home to investigate new products,surf some social networking sites or e-commerce platforms to learn about prices
or read reviews and feedback before making purchase decision than visit thestores directly as demonstrated in the figures about the proportion of activeonline shoppers conducting at least one line purchase every 2 months and thenumber of digital buyers globally from 2014 to 2021:
Figure 1: Proportion of active online shoppers conducting at least one online
purchase every 2 months
% of active online shoppers conducting at least one online purchase every 2 months.
Cosmetics & Personal care
Digital entertainment Agro Food and Beverages Fashion and accessories Pharmaceutical’ Health Media & books (both digital and physical)
ICT/electronic goods Home furniture & household products
Education and online courses Tools, gardening & do-it-yourself
TourismTravel, e.g hotel bookings, flight tickets, etc [I 0 ap
0% 25% 50% 75%
8# Since the outbreak of COVID-19 #2019
Source: UNCTAD and NetComm Suisse e Commerce AssociationFigure 2: Number of digital buyers worldwide from 2014 to 2021
25
214 2.05
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Also, compared to traditional customers, internet shoppers tend to use fewersenses, thus they rely less on textual and visual descriptions of goods andservices (Koufaris, 2002) Therefore, as a result of the increase in usingtechnological devices like smartphones or tablets, businesses tend to focus more
on social media marketing channels than on traditional marketing strategies likeleaflets or word-of-mouth that can be considered as effective ways to increasetheir market share or draw in more customers
Figure 3: Number of smartphone users
As a result of the digital revolution, a wide variety of industries, includingfashion, are greatly benefited by this trend As social media becomes morewidespread, fashion industry is very competitive Researchers have pointed outthat social media platforms like Facebook are superior than other forms ofadvertising because they maintain data on all of their users, guaranteeing thatmarketing reaches a retailer’s precise target market (Graham, et al., 2011).Thanks to social media sites, retailers have a great opportunity to build up
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experience and enhance the user experience with their business by making use ofthe data saved on social media sites
Customer relationship management’s main objective is to increase customer
loyalty (Randeni & Wanninayake, 2011) Customers who are loyal not only
make more frequent purchases of products, but they also ignore alternatives or
competitors if they make purchasing decisions Therefore, every interaction a
seller has with their customers offers the chance to further the satisfaction theyhave already felt with prior interactions Because social media acts as a forum forcommunication, merchants have an unrivaled opportunity to engage and supportclients, thereby strengthening customer loyalty Yet, since customers can readilytalk about their unpleasant experiences with company by sharing it on socialmedia, social media marketing can also have a negative impact on customerloyalty Another issue for firms that might reduce customer loyalty is cancelculture, which can occur through social media
2 Rationale
Internet social networks have been one of the most influential services onthe internet and Web, which have recently caused a significant shift in the socialsystem all over the world A new breed of websites called social networks hascaptured the interest of Internet users These websites operate on the basis ofonline organization and each one brings together a group of internet users whohave unique characteristics, Social network is an example of a social media thatenable new forms of online communication and information sharing
Nowadays, competition is more intense in the fashion sector, whichemphasizes the need of customer loyalty more than in the past Based on today’sperspective, marketing encompasses customer development, which takes intoaccount consumer happiness and quality, as well as their loyalty and efficient
communication (Heidarzadeh and Hoseini, 2008) As a result, companies try tohave loyal customers
In today’s competitive markets, gaining and keeping customer loyalty to abrand is considered as a challenge The need to take social media marketing intoaccount and plan for it is undeniable given the rising internet penetration rate inthe world, the widespread use of these tools, particularly among youngergenerations, and the growth of social networks in cyberspace with regard to theirfunctions and individuals’ impressionability from similar groups in this space
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Numerous marketing scholars, including marketing practitioners, have stressedthe importance of interpersonal interactions in shaping consumers’ attitudestoward desirable brands and building strong bonds between them and their
customers (Brexendorf et al., 2009)
Given the rapid expansion of social networks in our nation's online
environment, it is more important than ever to investigate the extent to which
these networks affect people's brand loyalty As a result, it is important thatNarylee Company Limited also venture into this area to reach out to theircustomers So the researcher has chosen the topic “A study on the influence ofsocial media marketing activities on customer loyalty towards homewearproducts in Narylee Company Limited”
3 Research objectives
The aim of the research is look at how social media marketing activities
influences consumer loyalty towards homewear products, which helps NaryleeLtd more than spending resources on extra promotional activities To achievethat, the researcher has developed the following objectives:
Firstly, to analyze the current situation of social media marketing activitiestowards homewear products in Narylee Ltd
Secondly, to identify social media marketing activities’ components influencing
on customer loyalty towards homewear products in Narylee Company Limited
Lastly, to provide suggestions to improve the current social media marketing
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5 Research scope
Geographical scope: Narylee Company Limited
Time scope: Data collected from the responses of the survey conducted amongcustomers of Narylee Company Limited spreading across Vietnam in 2023
Content scope: This research’s content includes information about social mediamarketing activities in general and at Narylee Company Limited specifically tomake data collection, analysis and provide some recommendations
6 Research methodology
Firstly, in order to review the current situation of social media marketingactivities in Narylee Company Limited, primary data and secondary datamethods are being applied
Primary data: including Narylee company’s internal information, information onthe internet, related research topics, from which there is an orientation for thetopic
Secondary data: collected based on the method of collecting primary data
examine the influence of social media marketing activities on customer loyalty
towards homewear products in Narylee Company Limited
Secondly, online questionnaire is designed on Google Form and sent to 100customers of Narylee Company Limited to gain an overview of the current status
of social media marketing activities in this company The questionnaire is
comprised of 3 parts:
Part 1: Personal information of the respondents
Part 2: The influence of social media marketing activities on customer loyaltytowards homewear products in Narylee Company Limited
Part 3: A short answer question
Last but not least, the research uses SPSS to assess the overall customers’attitude towards each component through the mean score calculation The scale
>
includes five ranges: “Strongly disagree”, “Disagree”, “Neutral”, “Agree”,
“Strongly agree”.
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7 Research structure
This study consists of five main chapters:
Chapter 1 - Introduction of the company - gives information about NaryleeCompany Limited such as overview of the company, organizational structure andmarketing department
Chapter 2 - Literature review - reviews the theoretical background of socialmedia marketing and discuss previous theoretical models, previous studies andresearch models
Chapter 3 - Research methodology — discusses the methods used to collect andanalyze the data and the participants’ information
Chapter 4 - Findings and discussion- provides a thorough analysis of collecteddata and discusses major findings
Chapter 5 - Recommendations - suggest some recommendations for NaryleeCompany Limited
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CHAPTER 1: INTRODUCTION OF THE COMPANY
This chapter focuses on providing general and specific information of NaryleeCompany Limited, including its history, basic information and organizational
structure.
1.1 Overview of Narylee Company Limited
Narylee Company Limited exclusively distributes Korean-style homewear inVietnam market Established in 2013 under the leadership of Ms Vu Thi Nga,chairman of the Management Board, Narylee has become one of the leadinghigh-quality homewear brands in Vietnam
Over a 9-year path of establishment and development, Narylee Ltd has beenincreasingly asserting its position in the field of fashion for women not only inHanoi city but also nationwide A journey of continuous development, thecompany has achieved many remarkable achievements, playing a great role in thefield of the Vietnamese fashion sector
Thanks to social media development, the company also constantly welcomesnew opportunities Narylee has affirmed its strong foothold in the market andbecome the incredibly growing fashion brand in Vietnam with a system of e-commerce platforms in the country such as: Tiki, Lazada, Shopee, Developingfrom selling online and using the livestream tool via Facebook, CEO Narylee has
proven that it is not only celebrities or "hot girls" who live stream sales that get
many views In particular, Narylee has attracted over 233,000 likes and 405,000follower on Facebook fanpage
Started as a start-up company with no reputation in fashion industry, butafter a long time of striving, Narylee now has over 20 employees with thousands
of loyal customers
In addition, Naryee Company Limited has developed a project since 2019,named Kimnhaxinh Kimnhaxinh is the world of decorative items that can besuitable for any style, any space Kimnhaxinh was born with the desire to create areliable destination for customers to find good-quality home decorations at themost reasonable prices After 4 years of operation, Kimnhaxinh has gained over3,000 customers nationwide
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1.1.1 Narylee’s Mission, Vision and Core Values
1.1.1.1 Mission
All women, no matter where they come from, have an equal opportunity toown the product they love when entering Narylee’s showroom Moreover, whenthey put it on, they gain not only physical beauty, but also a belief in their trueworth, prompting them to devote themselves to their desires and dreams and livehappily and confidently
Accompanying and understanding the concerns in the journey of shaping thebeauty and building the own style of women, Narylee has launched products withhigh convenience, optimization in hiding the body’s shortcomings, so thatwomen could feel confident and comfortable when they put them on WithNarylee, each product brings love and happy energy that company wants to give
to every Vietnamese women in all corners of the country Narylee believes thatthis journey will always get people’s interest and be shared because it comesfrom the heart and will touch hearts, especially people walking on the wrong
direction
Narylee hopes to perform two things: deliver quality fashion products andspread happiness to everyone It has been the company’s wish since it firstdebuted in 2013 For the past 9 years, Narylee has learned how to care from thesmallest things, to appreciate the values and magical beauty of every person Ithas alo witnesses constantly creative efforts and made decisions to bring womentrendy style and better experiences everyday With Narylee, the 9-year period isnot a destination, but a journey No matter how long this journey will take, it willalways be a happy journey because Narylee has been surrounded by so manypeople who accompany and inspire it on the mission path of HAPPY FASHION,spreading positive energy and community service
1.1.1.2 Vision
The company’s chairman compromise Narylee’s vision as follow:
Becoming the leading women’s fashion brand in Vietnam market by 2025 andbeing the top shopping address for women in the coming years
Extending scale and setting first steps into the world market by 2030
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1.1.1.3 Core values
Established with the mission "All women, no matter where they come from,have an equal opportunity to own the product they love when entering Narylee’sshowroom", Narylee Ltd always puts core values first Four core values arerespected and uniformly maintained by the entire staff, engraved in the mindthroughout the working process That is the spirit of: charisma, quality,dedication and responsibility
Charisma
Product quality and service attitude play an important role in buildingNaryee’s charisma The company always considers customers as the focus toserve From the beginning, Narylee did not define itself as a business marker, butjust an individual that “does a job” The company hopes that it can perform well
so that Narylee can be proud when it looks back on the whole journey later Interms of viewing customers as the focus, the company finds it necessary to
voluntarily provide full information, transparent prices and build a thoughtful
service process, Narylee does not rely on physical store or facebook fanpagefor customers to ask and will reply later Instead, the staff in the company putthemselves in the customers’ position to understand what they really want andneed, then find the solution for the problem, which step by step helps customers
to increase their trust in the company
Textures imprinted on the fabric are created by modern technology, which doesnot cause peeling if used for a long time
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Products’ form makes customers feel comfortable and does reveal body defects,especially suitable for married woman
Diverse designs with hundreds of different sizes and textures are suitable for allfour seasons in Vietnam
Exclusive brand and products are only distributed by Narylee to the marketwithout counterfeiting
Dedication
In terms of the staff that are young, enthusiastic and fashionable, Naryleealways affirms the brand value through meticulousness in every detail oftailoring as well as the product material’s selection process Because of that
dedication, Narylee always has its own value and difference in the eyes of
customers.
Besides, the staff at Narylee Ltd also have full professional knowledge
about fashion consulting as well as the products that the company provides
Therefore, there will certainly not be a situation that the staff lackprofessionalism or knowledge to support customer service
No matter what customers have difficulty in choosing homewears for the
first tine or for any special occasions, the staff from Narylee always try their best
to advise, support and provide customers with the best service experience
Responsibility
Social responsibility
With the role of a leading fashion company in Vietnam, Narylee not onlybusiness goals but also actively affirms its leadership in improving socialstandards and development for employees and community
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The Narylee corporate culture covers the basic "foundations" of what theorganization values and presumably, how employees are supposed to act withinthose values The best way to find out what a organization values is to track one
or more of the following: what they pay attention to, what they talk about, whatthey passionately defend, and what they praise and reward If your corporate
culture is working well, it provides direction to employees about what to do andwhat not to do in value related situations In an environment with a strong
corporate culture, individuals located in different departments or in far-flunggeographic regions should act pretty much the same given the same set of
Underwear
Underwear is a product that can be used by both men and women It is oftenattached to humans from an early age to old age Therefore, this is an extremelypopular and indispensable product for everyone Nowadays, underwear is notonly a tool to cover the “private parts” but also an outfit to express one’spersonality In addition, underwear is also considered as a weapon to attract theopposite sex As a result, Narylee is trying its best to provides customers withunderwear that comes in a variety of styles, colors and fabrics Moreover,
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because of the characteristics of contacting directly with the body’s sensitive parts, Narylee’s underwear is sewn with good fabrics, capable of absorbing sweatquickly, which ensures the best safety for the users
Decorative items for houses
Narylee aslo provides a website, named kimnhaxinh.vn for customers tochoose easily decoration items with any styles in any spaces of their houses.Kimnhaxinh was born with the desire to create a reliable destination forcustomers to find good-quality home decorations at the most reasonable prices
Narylee Company Limited is mainly controlled by the CEO and under CEO
is 5 main departments: sales, marketing, human resources, customer service and
finance While CEO is responsible for managing all business activities,
operations and administration, initiating the strategy to implement the company’svision, mission, core values, the other departments take on specific tasks andmissions under CEO’s directives, facilitating the company’s operations.Nonetheless, the researcher chose to concentrate on the duties and goals of theMarketing Department for this study
1.3 Marketing Department in Narylee Company Limited
The Marketing Department in Narylee Ltd can be viewed as a back officethat draws customers and cultivates strong relationships with them regarding allfacets of business If the sales team is in charge of convincing customers toutilize the service, the marketing team will either create an online platform or
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figure out ways to persuade customers to contact the sales teams with a variety ofrecommendations on search engine tools The Marketing Department can be
considered as a link between the business and the client in general and the salesteams and customers in particular
In terms of mission, the Marketing Department is crucial to the promotion of
services To be more precise, marketing personnel is in charge of altering the
content, HTML, and layout on online platforms in order to leave a positive
impression on visitors to the websites The department also makes use of SEOand SEM to raise the ranking of its websites in search engine results for targetedkeywords, such as Google, in order to enhance traffic and draw in more potentialclients Nowadays, the Marketing Department controls the majority of websites,
including narylee.com and kimnhaxinh.vn
In addition to designing websites, the Marketing Department is inresponsible of launching a number of marketing communication campaigns toenhance brand awareness, which is one of its primary goals The departmentworks with media agencies to fulfill clients' thoughts with Narylee's imagery It isalso responsible for obtaining customer service feedback and making suggestions
for enhancing offerings to constantly please customers Last but not least, the
department will assess the success of each marketing initiative based on expected
data on an annual basis in order to recommend Integrated Marketing
Communication for the company in the next year
All of these show how important the Marketing division is to how Narylee
Company Limited operates It is indisputable that the department is responsible
for a significant portion of the design work for Narylee Ltd.'s commercial
strategies, as well as for the technology setup of marketing communications andcustomer relationship management in particular
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CHAPTER 2: THEORETICAL FRAMEWORK
This chapter provides general information about social media marketing such asits definition, features and its importance Besides, it also consists of therelationship between social media marketing and customer loyalty and anoverview of the proposed research framework
2.1 Social media
2.1.1 Definition of social media
It is undoubted that people are using social media more and more thesedays According to Statisticbrain, almost everyone owns a social media accountand keeps it updated often Social media is defined as “activities, practices andbehaviours among communities of people who gather online to share information,knowledge, and opinions using conversational media” (Safko and Brake, 2009).Robinson (2007) asserts that social media are communication tools with Web 2.0characteristics, such as participatory, collaborative, knowledge-sharing, and user-empowering
Social media have a very accessibility and salable propagation techniqueshave been applied in them These are the media that are designed to engage andspread content on the internet through social interaction (Khaniki and Babaie,2011) Social networks, which show how effectively converging networksperform in the setting of a complex information society, often consist of personal
or organizational groups that are connected to one another via one or moredependencies Thus, having social odor is the reason for their rising success.According to Kaplan and Haenlen (2010), social media are a group of internet-based tools that are ideologically based and stabilized on web technology,allowing users to generate and share content
Nowadays, people of all ages choose to keep in contact with one anothermore regularly in a variety of ways In addition to traditionally social events andinteractions, people today use mobile devices to communicate and create socialnetworks online (Brown, Harvey, 2006) Social media is the platform that peopleutilize to do this More specifically, according to Nile (2014), Kaplan & Haenlen(2010), “Social media is the collective of online communication channelsdedicated to community-based input, interaction, content-sharing, and
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collaboration” The different varieties of social media are websites and programsdevoted to forums, microblogging, social networking, social bookmarking, socialcuration, and wikis These websites and applications fall into a select group ofsocial media categories (Ekanayake, 2015)
Social networks (Facebook, Instagram, Twitter)
Bookmarking sites (LinkedIn, Tumblr)
Social news (Reddit)
Media sharing (Youtube)
Microblogging (Twitter)
Blog commments and forums
2.1.2 Social media in fashion industry
Social media technology is used to encourage customers engagement withbrands These communications strengthen the brand by raising awareness,participation and engagement; this improve brand recall and encourages sales(Md1052, 2014) Fashion brands may reach customers through tweets, blogs, andsocial media sites such as Facebook, Twitter, Youtube, Instagram, and Pinterest(Ozdemir, 2015) Although many fashion firms thought social media woulddeteriorate their relationship with customers, social media is now seen as achance to strengthen those relationships and ultimately reach a larger customers
(Mohr, 2013) The introduction of social media (such as Facebook and Instagram)
has increased interest among fashion brands in viral and word-of-mouthadvertising
According to Mohr (2013), one of the most important forms of marketinformation for customers is word of mouth (WOM), which refers to
interpersonal communication regarding goods and services amongst consumers
Regardless of whether the information is accurate or not, WOM may be quiteeffective when it spreads online (Duley, 2015) Given the great immediacy ofinformation and the lack of a yardstick by which to judge the veracity, it isgetting harder for followers sift out the facts People congregate in a shared area
to share ideas as a result of the dissemination of information (Mohr, 2013)
Thanks to the internet, fashion is present everywhere “Blogs” give usersvirtually limitless online space for self-expression (Mohr, 2013) Blogs are
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defined as personal websites, “usually maintained by an individual with regularentries of commentary, descriptions of events, or other material such as graphics
or video, where entries are commonly displayed in reverse-chronological order”(Wikipedia, 2009) Not similar as fashion-focused periodicals and televisionprograms, a great number of fashion blogs are brought up-to-date frequently withnew fashion trends The blog’s potent personalized, personal, mainstream, andelitist point of view is what makes it so successful Readers get the chance toexpress their thoughts and take fashion critics to task thanks to its entertaining
experience Therefore, on the iPhone, Ipad, and iPod, there has been an increase
in fashion apps over the past two years These apps give users access to the most
recent discounts, fashion trend information, the convenience of shopping andsocial sharing simplicity (Mohr, 2013) Users can post their favorite items andensembles, as well as the newest styles from trend-setters and fashionistas Theyalso can connect with styles and share poses
“As more shoppers are using social media (e.g Twitter, Facebook,MySpace, and LinkedIn) and rely on them for marketing shopping decisions,promotion through these media has become important” (Miryala & Reddy,2015) According to Curran et al (2011), social media platforms like Facebookare superior to previous forms of advertising because they maintain data on all oftheir users, guaranteeing that marketing reaches a retailer’s precise target market.Retailers can leverage the data saved on social media sites to enhance the user
experience with their brand
In addition, researcher shows that a company can use social networking sites
to forecast customers’ chance to make a purchase (Hill, et al., 2006) This can beaccomplished by considering the networks a company chooses (such as Facebook,Instagram, Pinterest, etc.) and by looking at the data on those networks Acompany’s marketing efforts are greatly enhanced by analyzing a network’s datasince it gives the business crucial information about network’s users, which aids
in determining the most effective social media strategies for that specific website
(Hill, et al., 2006) According to this study, it can be stated that a significantelement in ensuring the effectiveness of online marketing is understanding whichsocial media platforms a company’s target market uses (Paquette, 2013, p 20).
According to Sorescu et al (2011), a brand must look beyond the socialnetworking sites’s potential advertising and devise ground-breaking strategies forusing them as a two-way conversational network with customers
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Sinclaire & Vogus (2011) determined that big organizations view social
media platforms as strategic tools and some companies are even hiring staff tomanage their social media accounts “Customer are no longer passive receivers ofmarketing messages; instead, they are using Facebook, MySpace, Youtube andTwitter to voice their opinions-both positive and negative” (Sinclaire & Vogus,
2011, p 293) To ensure that they can draw in more customers, small merchantsmust also begin implementing atypical marketing strategies in innovative and
compelling ways
2.2 Social media marketing
2.2.1 Definition of social media marketing
Rudyanto et al (2021), Wijayaa et al (2021) and Yuliantoro et al (2019)describe social media marketing as a process performed by businesses tocommunicate and conduct online marketing activities through social mediaplatforms in order to build and maintain stakeholder relationships bu interacting,
sharing information, and recommending products
Because social media marketing is distinct from traditional forms ofmarketing, it needs specific consideration and the development of a strategy inorder to generate a brand image and loyalty Relationship marketing and socialmedia marketing are related; in relationship marketing, it is required forcompanies to switch from “trying to sell” to “building connections” withcustomers (Gordhamer, 2009) Also, firms should avoid “big companies” andfocus on “little acts”, as certain small initiatives can quickly and easily reach ahuge number of people and achieve their goals (Coon, 2010) Social mediamarketing tries to show what the company is rather than trying to control itsimage, which makes it more authentic in its engagement with customers
A strong social media strategy is necessary to maintain competitiveness in
today’s rapidly changing corporate environment In order to make a decision onthe content and features of their offers and activities in social media settings,businesses engage with social media specialists and consultants with a view towinning over consumers’ hearts and minds and engender brand loyalty (Coon,2010) According to eMarket research, consumers use social networkingplatforms to follow a brand’s products and advertising initiatives For instance,Pepsi and Coca-Cola used online customer loyalty programs to entice customerswith exclusive deals, cost-free mp3 downloads, free CDs, and other incentives
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(Mangold and Foulds, 2009) Customers also consider social media platforms as
a service channel where they can interact with brands in real-time (Leggat, 2010).Consumers, however, favor up-do-date content on social media Therefore,Google has modified its search algorithm, which allows users to view newlyupdated content first (Feidman, 2011) Consumers who are exposed to numerousmarketing messages on social media sites weed out the information that is notpertinent to them (Brito, 2011) Hence, one of the most important tactics forsuccessful managing a company on social media is to provide relevant andupdated material Another key factor in customer;’s engagement with brands onsocial media is the popularity of the social media platform and the content amongfriends As there are several social media platforms and it is hard to participate
in all of them, marketers should consider their target demographic and choose theones that will allow them to communicate with them most effectively.Additionally, offering mobile applications enables clients to interact with thecompany consistently and foster customer loyalty (Kim and Adler, 2011)
2.2.2 Components of social media marketing
The researcher conducted the research through certain studies to further findout the relationship between components of social media marketing activities andthe customer’s loyalty toward the brand What the researcher discovered was thatthose components have been highlighted in different publications by variousauthors and settings Five components for social media marketing activities weresuggested by Kim & Ko (2010), who worked for opulent companies, namelyentertainment, interaction, trendiness, customization, and word-of-mouth.Ebrahim (2020) also proposed a methodology that includes those mentionedfactors in social media marketing activities Sano (2015) concurred with Kim &
Ko (2010) regarding three components of social media marketing in theinsurance service sector: interaction, trendiness, customization and addedperceived risk, which is considered as the fourth elements of social media
marketing activities Mehrabi et al (2014) pointed out five areas of social mediamarketing, including advertising campaigns, updating content, providing relevant
content, delivering popular content among friends, and providing applicableprograms In 2013, Jo looked at three elements of events, information andadvertisement to investigate the marketing activities on social networks In herresearch on the significance of business of business social media activities, Lee(2017) divided these activities into communication, providing information,
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support for daily life, promotion and selling and social response Seo & Park
(2018) identified these elements as entertainment, interaction, trendiness,
customization, and, perceived risk in their study of the airline sector
For conceptualizing framework, the researcher has chosen the components
recommended by Kim & Ko (2010) and included one more component that she
believe will have an impact on the Vietnam market for this research Kim & Ko
(2011) evaluated five aspects of Entertainment, Interaction, Trendiness,Customization, and Word of mouth in their study to examine how customers areinfluenced by social media and if they are impacted by social media marketingactivities in terms of their purchasing behaviour and brand evaluation Thefindings showed that despite some items from each element being eliminated due
to factor loadings, all five dimensions had a positive influence on how customersrated social media marketing activity (Sano, 2015) In addition, while examiningVietnamese consumer behaviour, promotion has been considered to be asignificant component According to a 2019 poll by Deloitte Vietnam onpreferred sources of information, the importance of online and digital channel;s isanticipated to increase as Internet and smartphone penetration rated continue torise across Vietnam (Deloitte, 2020) Thus, this component is chosen as theimpact possibilities it would have on this particular market In general, thepurpose of this study is to investigate the potential influence of social mediamarketing on customer loyalty The researcher anticipate finding positive
relationships between these six social media marketing activity aspects andcustomer loyalty
An entertainment component of social media marketing can be thought of
as experiences created by marketers on social media platforms that are viewed asengaging and vibrant by customers (Agichtein et al., 2008) With the creation of
positive feelings, entertainment enables firms to encourage consumers to supporttheir brands (Kang, 2005) According to Muntinga et al (2011), customers are
said to constantly seek satisfaction and amusement on social media networks by
sharing details about the product, such as news and pictures (Lee & Ma, 2012)
As a result, entertainment can improve customer purchase intent and foster asense of brand intimacy (Dessart et al., 2015), which encourages and raises social
network participation (Park et al., 2009)
Kim & Ko (2012) defined interaction as giving clients the opportunity fortwo-way communication with brands and information exchange with other users
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Social media, as opposed to conventional marketing techniques, enablesbusinesses to remain involved and receive unique requests, product suggestions,
or complaints from customers (Vukasovic, 2013) Social media also offers aplatform for conversations, debated, and the sharing of viewpoints Targetedsocial media profiling fosters common conversation themes and aids in thedevelopment of the brand-customer relationship (Manthiou et al., 2013) Suchinteractive activities would encourage consumer involvement in boosting brand
trust and eliminate consumer doubts while making purchases (Khadim et al.,
2018) Hence, the potential outcomes can explain why marketers want topersuade social media users to engage in online discussions (Zhu & Chen, 2015)
Trendiness describes the most popular issues currently being discussed ortrendy information that brands find relevant and engaging to provide with theirclients (Naaman et al., 2011) This trendiness can include company-relatedinformation, customer reviews and product recommendations, emergingtrends, that promotes client trust while also raising brand recognition (Godey
et al., 2016) The types of information that companies can provide to customersvary The first is the most current, widely talked-about trends among users,which can be about anything, including social, amusement, etc Another typemight be brand-based instructional material, which provides customers withadditional knowledge about things like the place where a product was made, how
it was made, or the companies efforts to protect the environment Also,consumers prefer to learn about products through user reviews and comments sothey can understand other viewpoints Also, brands can offer clients trendymaterial that serves as an inspiration or a suggestion, such as fashion lookbooksthat offer options for winter attire or advice on how to design the idealScandinavian kitchen A business can increase and offer more value by providingcustomers with the most recent, up-to-date information (Godey et al., 2016).According to this literature, this particular activity not only lessons the significanteffort that clients must expend in their information searches but also strengthensand generates positive assessments of the brand
Customization is created to increase consumer happiness by satisfying thembased on their own preferences, brands, and individuals work together (Seo &Park, 2018) It speaks to the extent to which businesses cater their goods andservices to specific consumer preferences and needs in order to satisfy demandand increase customer retention (Seo & Park, 2018; Chan & Guillet, 2011)
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Martin & Todorov (2010) assert that this particular marketing activity givesbusinesses a chance to interact with potential customers, which strengthens andimproves trust and purchase intent Messages that are sent to a certain group oftargeted clients can also be viewed as customization Companies can stressindividuality and personalization through this element, which will increase brandtrust and intimacy with users
From the beginning, Word of Mouth was acknowledged as the mostsuccessful yet poorly understand marketing tactic in existence (Misner, 1999).This aspect of social media marketing activities is the dissemination ofinformation about a specific product or business to other users on digitalnetworks from the perspective of the consumer (Hennig-Thurau et al., 2004).Users engage with one another through word-of-mouth, sharing and exchangingpersonal experiences, ideas, and views on goods and services as well as tips andrecommendations (Sano, 2014) The definition of this phrase, given by Muntinga
et al (2011), is relationships between clients and businesses Customers tend to
believe word-of-mouth since it is more reliable and trustworthy than theinformation firms already present on their websites and social media channels.Customers frequently look for other opinions online before making a purchasesince the online word-of-mouth is based on actual experiences rather thanoverblown marketing claims Social media is the right tool for spreading
information to other interested individuals Consumers have the option to expressand request opinions Such activities can broaden and deepen the networks of
relationships inside brand communities, thereby promoting consumer brandloyalty and brand trust According to Karjaluoto et al (2014), customers’decision to share their ideas via word of mouth on digital platforms may have apositive effect on their decision to make a purchase
Consumers are frequently persuaded to make purchases based on a brand’smarketing as well as the quality of its products and services Keller (2009)defined promotion as strategy to increase consumption through short-term efforts
and convince targeted consumers to participate Marketers use promotion on
social media marketing to boost sales volume and brand loyalty among bothcurrent and infrequent customers Using promotion in social media marketingstrategies significantly aids businesses in raising brand awareness and productconsumption rates Due to the multiple holidays and events where consumers can
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expect various deals and are ready to buy products, this element will fit theVietnamese market well
2.2.3 The importance of social media marketing
Social media marketing has evolved into a crucial component of onlinemarketing strategy for all kinds of organizations with the advent of new socialcommerce platforms It represents accessible equipment for fusing verbalcommunication with technology and social engagement (Neti, 2011) Themajority of those technologies are web-and mobile-based; popular ones includeTwitter, Facebook, Myspace and Youtube (Neti, 2011) Social media givesmarkerters a voice and a platform to engage with colleagues, consumers andpotential customers It humanizes the company and promotes message in a casual,
friendly manner Also, it is a tool that may be utilized to enlighten customersabout products (Lake, 2015)
Social media is really important today Marketers may effectively use socialmedia in order to (Neti, 2011) (Bendror, 2014)
Identify the brand and provide information about the goods or services they offereffectively (brand recognition)
Establish connections with people on social media who might not otherwise beaware of the products, services, or brands that companies represent
Enhance brand loyalty
More chances to convert: Every post that marketers make on social media sitesgives consumers a chance to convey Marketers will be able to communicate with
all of their clients at the same time, whether they are recent customers, oldcustomer, or both
Increase conversation rates in a few key ways: People prefer to do business withother people, not with companies, and social media is a platform where brandscan act like people do
Increase brand authority
Lower marketing costs - social media advertising is generally inexpensive when
compared to other medias (broadcast media and print media)
Provide engaging content to bring businesses to life on social media
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Develop business alliances
As a result, social media marketing during this time period became quiteessential Businesses have undoubtedly recognized the value of social media andacknowledged that social media marketing is an essential component of their
overall strategy for marketing and public relations (Bendror, 2014)
2.3 An overview of customer loyalty
A repeat buyer who also spreads the word about the brand to other people isconsidered a loyal customer One of the main goals of customer relationshipmanagement is to increase customer loyalty (Randeni & Wanninayake, 2011).Positive emotional attitudes toward a specific brand in the minds of consumerslead to customer loyalty Primarily, loyalty emerges through favorableexperience and increased pleasure of perceived worth According to Emond(2013), keeping known customers is less expensive than finding new ones, anddoing so is the most efficient approach to increase customer retention,satisfaction, and loyalty It appears that building customer loyalty is crucial for
any business organization, so the numerous studies have been conducted and
identified two key loyalty qualities, namely “Attitudinal Loyalty and BehavioralLoyalty” Out of these two, attitudinal loyalty may be more crucial for marketersusing social media (Silva & Yapa, 2009)
Behavioral Loyalty
The majority of marketers basically view customer loyalty as repeat buying,
which exclusively relies on loyal customers to produce profits Yet, this is onlyone sort of customer loyalty, which is “Behavioral loyalty” (Silva & Yapa, 2009).These consumers can be seen frequently if the business offers services Having
behaviorally loyal clients is vital for producing income, but if they are notsatisfied, they are likely to switch to a rival and moreover, they are likely to
disseminate bad rumors about the company to other potential customers (Bennett
& Bov, 2002) Behavioral loyalty can be found in:
Low cost compared to other competitors
When there is an agreement with the company
High switching cost
There is a relationship with an employee rather than with your company
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It’s difficult to break habits
Attitudinal Loyalty
According to Bennett and Bove (2002), “Attitudinal loyalty” is defined aswhen certain loyal clients lower the costs of consumer education and marketingand simple to manage, and especially spread good word of mouth by turning intonet boosters Because of the strong bond that exists between an attitudinal loyaltycustomer and a specific brand, those customers will not ever switch to thecompetition simply just since their current supplier has a problem or the productand service offered does not meet their needs Instead, they will try tocommunicate with the company and correct any errors by investing their timeand effort without expecting anything in return Although attitude-based loyaltycustomers are excellent (Cheng, 2011), their purchasing rates may be lower thanthose of behavioral loyalty customers since people have favorite companies thatthey do not always choose to purchase from If the behaviorally loyal consumersare also attitudinally loyal, the relationship will be of immeasurable worth
Instead of having just one sort of customer, most marketers work to cultivateloyal attitudinal and behavioral consumers (Rundle-Thiele, 2005) Marketersattempt to achieve this by being ethical, democratic, and catering to variousclients segments, utilizing various types of methods, and by rephrasing thecustomers (Samarasinghe & Fernando, 2013) They must also determine whotheir ideal clients are and what their actual needs are
2.4 The influence of social media marketing on customer loyalty
Okazaki et al (2015) noted that numerous organizations had recentlyembraced social media to link customers with brands Furthermore, they still donot understand how to develop customer engagement with brands According toTuten (2008), social media marketing refers to a broad variety of publicityexpenditures, including the use of social networks, podcasts, bloggerauthorizations, virtual worlds, social information sites, product reviews generated
by users, games, and consumer-generated advertisements To encourage andincentivize social media users to collaborate with their friends and families,social media marketing turns customers into promoters and marketers forcompanies that generate, review, and break online information about the products
of the business (Ismail, 2017)
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Social media was first solely used by people to stay in touch with their
family and friends, but later it evolved into a tool for business publicity anddelivering information about popular companies through the world (Ismail, 2017)
Consumers now follow the branding pages to learn about the newest productsfrom the company and to read business news Companies are establishing a clearunderstanding of their target markets and basing their product development onthe lifestyles of their clients (Zhu et al., 2009) If a company has more loyalcustomers, it will improve its standing in the market and gain more profit(Reichheld & Schefter, 2000) Customers can become dependable on reduceskepticism about purchases and foster faith in the products if the brand’s initialexperience is positive and it earns their trust (East et al., 2013)
Trust is frequently a driving force behind customer loyalty, however, loyaltycannot be replaced by trust because customers are frequently dissatisfied butloyal to the brand (Bitner, 1990) Consumers will be confident in the products if
they realize that the products they buy are trustworthy, especially the brand they
intend to buy (Ha & Perks, 2005) Additionally , satisfaction also plays animportant role in encouraging customer loyalty (Hellier at al., 2003) Severalresearchers, like Ali and Muqadas (2015), demonstrate the link between customerloyalty and satisfaction and show that the correlation between customer loyaltyand satisfaction is positive
Consumers might not know anything about companies before thedevelopment of social media marketing In the modern era, social mediamarketing is essential for helping businesses retain their current customers byproviding them with reliable information about the product or brand(Zarantonello & Schmitt, 2010) The customer gathers corporate informationfrom online sources and compares it with a product from a different brand tomake it more advantageous and less reliant on the brand they were going to buy
in the competitive current market (Ismail, 2017) At times, the company has
struggled because consumers rely too much on other people’s feedback and on
incorrect statements made by people (Marshal & Murdoch, 2001)
According to Hellier at al (2013), businesses can increase customer loyaltythrough strengthening their relationships with consumers The client
collaboration comprises timely brand reports, information on upgrades, details
on the business’s most recent product, and details on the enhancements thecompany makes to the existing and new brand (Mellens, Dekimpe & Steenkamp,
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1996) Customers will see the brand more favorably and believe that it wascreated with their needs in mind as a result of this kind of detail (Madanoglu,2004) Several companies make such goods to consumers’ demands using socialmedia This can increase consumer trust and customer loyalty A product isoffered to customers based on their preferences (Smith, 2003)
2.5 Research framework
On the basis of the ideas summarized above, the researcher would like tosuggest following research framework for the research on the influence of socialmedia marketing on customer loyalty towards homewear products in Narylee
Company Limited as the diagram below:
Figure 5: Proposed research framework
Social Media Marketing (SMM)