This study aims to contribute to an improved understanding of the nature and dimension of perceived social media marketing activities in the UK retail clothing industry. This thesis embraces the major perceived social media marketing activities of clothing retailers which namely: entertainment, interaction, trendiness, customization and word of mouth. It also investigates if there’s an existence of relationship between social media marketing activities and customer retention as well as the relationship between customer retention and consumer attitude. Social Exchange theory and Ranaweera and Prabhu's (2003) holistic approach were the major theories used in this research.; two factors is identified in this study because of time limitation that determines customer retention and the rest of the factors has been recommended for further research: customer satisfaction and customer trust.
Social media marketing activities has become vital for organisations in an online environment. Although the role of social media marketing activities has been examined in an online marketing environment, their existence and significance in predicting customer retention has not been explored. This research examines the impact of social media marketing on customer retention and particularly focuses on the activities UK clothing companies’ uses and their impact on customer retention and consumer attitude.
The data were collected through online questionnaires from over 220 retail clothing customers in London and United Kingdom. Over-all, the strategy for evaluating the psychometric properties of the measurement is split into two parts: measurement model calibration and measurement model validation which involve Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA). All intended hypotheses are tested using Structural Equation Modelling (SEM).
Table of Contents
CHAPTER ONE
INTRODUCTION
1.0 Introduction
1.1 Managerial Contributions
1.2 Conceptual and Empirical
1.3 Methodological
CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
2.1 SOCIAL EXCHANGE THORY: COMMITMENT TO RELATIONSHIP
2.1.1 Utilitarian vs. Reinforcement
2.1.2 Affective Component and Emotion
2.1.3 Social Uncertainty
2.1.4 Group Cohesiveness
2.1.5 Investment Model
2.1.6 Summary
2.2 HISTORY AND EVOLUTION OF THE INTERNET
2.2.1 Concept and Literature on E-business
2.2.2 E-commerce Definition and Concept
2.2.3 E-Commerce Trends
2.2.4 Mobile Commerce
2.2.5 S-commerce
2.2.6 Barriers to E-commerce
2.2.7 The Difference between E-commerce and E-business
2.3 E-TAILING AND ONLINE RELATIONSHIP BUILDING
2.4 CONCEPT OF MARKETING
2.4.1 History and Evolution of Marketing
2.5 Social Media: Concepts, Issues and Implication
2.5.1 Definition and Evolution of Social Media
2.5.2 Types of Social media
2.5.3 What is Social Networking?
2.4.2 The Rise of Digital Branding in the Social Networking Environment
2.4.2.1 Traditional Marketing Techniques
2.4.1.2. Social Networking Technique – Opportunities and Obstacles
2.4.1.3. Buzz Marketing
2.4.1.4 Word of Mouth Marketing
2.4.1.5 VIRAL MARKETING
2.6.1 Viral Marketing and How It Spreads
2.6.2 Previous Research on Viral Marketing
2.6.3 Advantages of Viral Marketing
2.6.4 The Relationship Between Viral Marketing and Social Media Marketing
2.6.5 Problems with Measuring Viral Marketing
2.4.1.6 Community Marketing
2.4.1.7 Evangelism Marketing
2.4.1.8 Grassroots Marketing
2.4.1.9 Referral Marketing
2.4.2.0 Conversation Creation Marketing
2.4.2.1 Influencer Marketing
2.4.2.2 Cause Marketing
2.4.2.3 Brand Blogging
2.4.3 Email Marketing
2.5.4 Social Media Marketing and Customers
2.5.5 Consumer motives for engaging in social media
2.5.6 Consumer perceived online social media activities
2.5.7 Perceived Social Media marketing activities of Clothing Retailers
2.7 CONSUMER ATTITUDE TOWARDS SOCIAL MEDIA MARKETING
2..7.1 Gaps in the Consumer Attitude Literatures
2.8 CUSTOMER RETENTION THEORIES AND FACTORS INFLUENCING RETENTION
2.7.1 Customer Relationship Management (CRM) as Part of Retention Strategies
2.9 AIMS AND OBJECTIVES
2.10 Summary
CHAPTER THREE
Conceptual Framework and Research Hypotheses
3.1 Introduction
3.2 Dimensions of Perceived Online Activities
3.2.1 Entertainment
3.2.2 Interaction
3.2.3 Customization
3.2.4 Trendiness
3.2.5 Word of Mouth
3.3 Customer Satisfaction
3.4 Consumer Attitude
3.5 Customer Retention
3.6 Customer Trust
3.7 Proposed conceptual Framework
3.8 Summary
CHAPTER FOUR
RESEARCH METHODOLOGY
4.1 INTRODUCTION
4.2 RESEARCH PARADIGM POSITIONING
4.2.1 Research Approaches
4.2.1.1 Deduction: Testing Theory
4.2.1.2 Research Design
4.3 MEASUREMENT PROBLEMS AND INSTRUMENTATION
4.3.1 Pilot Study
4.3.2 Operationalisation of Research Constructs
4.3.2.1. Online Perceived Social Media Marketing Activities
4.3.2.1.1 Entertainment
4.3.2.1.2 Interaction
4.3.2.1.3 Trendiness
4.3.2.1.4 Customization
4.3.2.1.5 Word-of-Mouth
4.3.2.2 Customer Satisfaction
4.3.2.3 Customer Trust
4.4
4.4.1 Survey Method
4.4.2 Determination of Sample size
4.4.3 Sample Selection and Research Context
4.4.4 Online Survey at a Glance
4.4.5. Data Collection Technique
4.5 ANALYSIS AND INTERPRETATION OF DATA
4.5.1 Measurement Model Validation: Exploratory Factor Analysis (EFA)
4.5.2 Measurement Model Validation: Confirmation Factor Analysis (CFA)
4.5.2.1 Unidimensionality
4.5.2.2 Scale Reliability
4.5.2.3 Convergent Validity
4.5.2.4 Discriminant Validity
4.5.2.5 Nomological Validity
4.5.3 Hypotheses Testing
4.5.4 Estimation Method
4.6 Summary
CHAPTER 5
BACKGROUND OF THE RESEARCH
5.1 1NTRODUCTION
5.2 Globalization
5.3 UK POPULATION
5.3.1 General Overview of UK Population
5.3.2 Age Distribution of UK Population
5.3.3 London Variation and other Selected Demographics
5.4 UK ECONOMIC CONTEXT
5.5 UK Retail Market
5.5.1 UK RETAIL ONLINE SALES
5.6 UK Fashion Industry Statistics
5.6.1 UK Fashion Through the Decades
5.6.2 Fashion Industry Employment Rate
5.7 Summary
CHAPTER 6
MARKETING COMMUNICATION ROLE IN THE UK CLOTHING SECTOR
6.1 INTRODUCTION
6.2 UK RETAIL CLOTHING MARKET
6.2.1 PESTLE Analysis of Retail Clothing Market
6.2.1.1 Political Impact on Clothing Retailer
6.2.1.2 Economic Impact on Clothing Retailers
6.2.1.3 Social Impact on Clothing Retailers
6.2.1.4 Technological Impact on Clothing Retailers
6.2.1.5 Legal Impact on Clothing Retailers
6.2.1.6 Environmental Impact on Clothing Retailers
6.3 Market Share of Both Specialist and Non-Specialist
6.4 Specialists’ Share of Clothing Spend
6.4.1 Revenue Shares For Specialist Retailers
6.5 Online Market Shares
6.6 Marketing Communication of Clothing Retailers
6.7 Advertising
6.7.1 Above the Line Advertising
6.7.2 Through the Line Advertising
6.7.2 Below the Line Advertising
6.8 Retail Clothing Marketing and Advertising Activities in UK
6.8.1 Boohoo’s Utilisation of Digital Channels
6.8.2 H&M Retains High-Profile Campaign with David Beckham
6.8.3 Debenhams’s Super Model Campaign
6.8.4 Topshop Hashtag Campaign
6.8.5 River Island Partners with Google
CHAPTER SEVEN
DATA ANALYSIS 1 – DESCRIPTION OF SAMPLE
7.1 INTRODUCTION
7.2 RESPONSE RATE
7.3 NON-RESPONSE BIAS ASSESSMENT
7.4 RESPONDENTS’ PURCHASE EXPERIENCE WITH SOCIAL MEDIA MARKETING
7.5 DATA SCREENING BEFORE TESTING AND ANALYSIS
7.5.1 Missing Data
7.5.2 Outliers
7.5.3 Normality
7.5.4 Linearity
7.5.5 Summary
Chapter 8
DATA ANALYSIS II: VALUATION OF THE MEASUREMENT MODEL
8.1 INRODUCTION
8.2 PROCEDURAL CONSIDERATIONS
8.2.1 Model Fit Statistics
8.3 PERCEIVED SOCIAL MEDIA MARKETING ACTIVITIES (SMMAs)
8.3.1 Dimensionality Tests for SMMAs
8.3.2 Convergent Validity Test for Online Perceived SMMAs
8.3.3 Reliability Test for Online SMMAs
8.3.4 Discriminant Validity Test for Online SMMAs
8.4 CUSTOMER RETENTION ((CSATIS) AND (CTRUST))
8.4.1 Dimensionality Test for CTrust and CSatis
8.4.2 Convergent Validity Test for CSatis and CTrust
8.4.3 Reliability Test of CTrust and CSatis
8.4.4 Discriminant Validity Test of CTrust and CSatis
8.5 CONSUMER ATTITUDE (CAttitude)
8.5.1 Dimensionality Tests for CAttitude
8.5.2 Convergent Validity Test for Consumer Attitude
8.5.3 Reliability Test for CAttitude
8.5.4 Discriminant Validity Test for CAttitude
8.5.5 Discriminant Validity Assessment between SMMAs and CAttitude
8.5.5 Discriminant Validity Test for All Constructs in the Proposed Model (SMMAs, CAttitude, CSatis and CTrust)
8.6 SUMMARY
Chapter 9
DATA ANALYSIS III - EVALUATION OF STRUCTURAL MODEL
9.1 INTRODUCTION
9.2 EVALUATION OF STRUCTURAL MODEL
9.2.1 Direct Effect
9.2.2 Mediation Effect
9.2.3 Summary
CHAPTER 10
RESEARCH DISCUSSION AND FINDINGS
10.1 INTRODUCTION
10.2 SYNOPSIS OF THE STUDY
10.3 IDENTIFIED PERCEIVED ONLINE SOCIAL MEDIA MARKETING ACTIVITIES DIMENSION
10.4 HYPOTHESES TEST RESULTS
10.4.1 SMMAs → CRetention (H1)
10.4.2 SMMAs → CAttitude (H2)
10.4.3 SMMAs → CAttitude → CRetention (H3)
10.4.4 SMMAs → CRetention → CAttitude (H4)
10.4.5 CRetention → CAttitude (H5) and CAttitude → CRetention (H6)
10.4.6 Summary
CHAPTER 11
CONCLUSION AND RECOMMENDATION
11.1 INTRODUCTION
11.2 THEORETICAL CONTRIBUTIONS
11.3 MANAGERIAL CONTRIBUTIONS
11.4 CUSTOMER SATISFACTION
11.5 CUSTOMER TRUST
11.6 LIMITATIONS AND SUGGESTIONS FOR FUTURE RESEARCH
11.7 RECOMMENDATION FOR UK CLOTHING RETAILERS
11.7.1 GENERAL RECOMMENDATION
11.7.1.1 Strong Online Presence
11.7.1.2 Social media Presence
11.7.1.3 Innovation
11.7.1.3 Faster Delivery
11.7.1.4 Adapting and Meeting Consumer Needs
11.7.2 SPECIFIC CLOTHING RETAILER RECOMMENDATION
11.7.2.1 Recommendation for Primark
11.7.2.2 Recommendation for Debenhams
Research Objectives and Themes
This research aims to determine the extent to which social media marketing activities influence customer retention within the UK large retail clothing market. It specifically explores the causal relationship between these marketing activities, customer satisfaction, customer trust, and consumer attitude in order to understand how retailers can transition from transaction-based customer relationships to long-term retained loyalty.
- The role and impact of marketing communication, particularly social media, in the UK retail clothing sector.
- Identification of primary social media marketing activities utilized by UK retailers and their direct influence on customer retention.
- The investigation of the relationship between social media marketing activities and customer attitudes toward such marketing.
- The exploration of links between customer retention levels and consumer attitudes influenced by social media presence.
- Development of strategic recommendations for clothing companies to improve future social media engagement and customer retention success.
Excerpt from the Book
1.0 Introduction
The past two decades have experienced a shift in terms of communication. The practice of business-to-consumer (B2C) e-commerce by a huge number of retailers has transformed many aspects of interactions between customers and organisations (Fuentes-Blasco et al, 2010). This retail format has proven to be a vital channel of choice for the United Kingdom (UK) customers. For example, in 2015, Retail research report indicates 16.2% growth in 2015 in the UK retail sector, £52.25 billion online sales in 2015 (The Pure London, 2016). This trends in online sales make known the enormous potential in electronic commerce as an option to traditional offline brick-and-mortar retail channel (Tsai et al, 2006). Nevertheless, strategies to both gain and retain customers are not particularly straightforward, especially for retailers that have an online presence. The cost of acquiring new customers can be five times higher than maintaining existing ones (Bauer et al, 2002). Additionally, maintaining existing customers is less expensive than maintaining newly acquired ones (Harris and Goode, 2004; Reichheld, Markey and Hopton, 2000; Reichheld and Schefter, 2000; Tsai et al, 2006). Consequently, customer retention has resulted in “an economic necessity” for retailers operating in an online environment (Balabanis et al, 2006). Retailers continually seek out various drivers of customer retention because of online competition. Retailers must focus on identifying, understanding and retaining their customers in facing high competition and high consumer expectations (Anderson and Srinivasan, 2003; Reichheld and Schefter, 2000).
This period is a very distinctive period for marketing professionals because of the electronification of traditional marketing. This communication between organisation and consumer is made possible because of the Internet and technology. The emergence of internet and electronic commerce has provided opportunities for organisations to expand their customer base, release new products into the market and streamline their business. The impact of internet revolution is just beginning to be felt and it is not information nor, artificial intelligence or the effect of computer and data processing on decision making that brought about this revolutionary impact, it is something that no one foresaw or anticipated that brought about this change and its E-Commerce- that is, the major worldwide distribution of goods and services.
Summary of Chapters
CHAPTER ONE: This chapter introduces the research context, highlighting the transition of the UK retail sector to digital platforms and establishing the necessity of customer retention in an online environment.
CHAPTER TWO: This chapter provides a comprehensive review of literature regarding social exchange theory, internet evolution, marketing history, and theories of customer retention.
CHAPTER THREE: This chapter outlines the conceptual framework, exploring dimensions of perceived online activities and formulating the research hypotheses.
CHAPTER FOUR: This chapter details the research methodology, discussing the philosophical positioning, data collection via online surveys, and the operationalisation of core research constructs.
CHAPTER 5: This chapter provides essential background on the UK economic and fashion industry context required to understand the research field.
CHAPTER 6: This chapter serves as a secondary research analysis on the role of marketing communication within the specific environment of the UK clothing sector.
CHAPTER SEVEN: This chapter reports the descriptive analysis of the sample collected, including response rates and demographic profiles.
DATA ANALYSIS II: VALUATION OF THE MEASUREMENT MODEL: This chapter performs Exploratory and Confirmatory Factor Analysis to ensure the reliability and validity of the measurement instruments.
DATA ANALYSIS III - EVALUATION OF STRUCTURAL MODEL: This chapter tests the proposed hypotheses using Structural Equation Modelling to determine the impact of social media marketing on retention.
CHAPTER 10: This chapter discusses the research findings in detail, linking the empirical results back to the research objectives and hypotheses.
CHAPTER 11: This final chapter provides conclusions, theoretical and managerial contributions, acknowledges limitations, and offers recommendations for future research.
Keywords
Social Media Marketing, Customer Retention, UK Retail Clothing, Customer Satisfaction, Customer Trust, Consumer Attitude, E-commerce, Structural Equation Modelling, Online Shopping, Brand Loyalty, Marketing Communication, Digital Branding, Viral Marketing, Online Consumer Behaviour, Retailer Strategy.
Frequently Asked Questions
What is the core focus of this doctoral thesis?
This research investigates how perceived social media marketing activities impact customer retention within the UK large retail clothing industry, focusing on how these activities affect consumer attitude, customer satisfaction, and customer trust.
What are the primary thematic pillars of the study?
The study centers on five key online marketing dimensions: entertainment, interaction, trendiness, customization, and word-of-mouth, and their collective ability to foster long-term customer retention.
What is the central research hypothesis?
The primary hypothesis tests whether perceived social media marketing activities have a direct and positive influence on customer retention, while also exploring the mediating roles of customer satisfaction and trust.
Which statistical methods are employed for analysis?
The research utilises quantitative methodology, primarily using Structural Equation Modelling (SEM) conducted through SPSS 23 and AMOS 22 to test the structural model and the intended hypotheses.
What does the main body of the work cover?
The thesis progresses from a strong theoretical foundation (social exchange theory) to an industry-specific analysis of UK retail, followed by a rigorous data analysis section evaluating the proposed framework against survey data from over 200 consumers.
Which descriptors best define this research?
Key terms include Social Media Marketing, Customer Retention, UK Fashion Retail, Structural Equation Modelling (SEM), and Consumer Attitude.
How does this study contribute to current knowledge on retail?
It provides an empirical link between social media activities and customer retention in the specific context of the UK, addressing a significant literature gap where previous studies largely focused on other geographical regions or different service sectors.
What is the role of 'Customer Trust' in this research framework?
Customer Trust acts as a critical factor influencing customer retention; the study demonstrates that trust, when built through social media communication, serves as a barrier to exit and increases the likelihood of continued engagement.
Does this research provide practical advice for retailers?
Yes, the final chapter offers tailored recommendations for major retailers like Primark and Debenhams, advising them on how to leverage social media to enhance their digital presence and improve customer engagement strategies.
- Arbeit zitieren
- Josephine Lawal (Autor:in), 2016, Perceived Social Media Marketing Activities and Its Impact on Customer Retention and Consumer Attitude, München, GRIN Verlag, https://www.grin.com/document/1294317
