Social Media Marketing: A Literature Review ... - Wiley Online Library

Social Media Marketing: A Literature Review and Implications Helena Alves University of Beira Interior and NECE

Cristina Fernandes Polytechnic Institute of Castelo Branco and NECE

´ Mario Raposo University of Beira Interior and NECE

ABSTRACT This study carries out content analysis and systemizes articles on social media marketing in the Web of Science database. Forty-four studies were analyzed in accordance with a variation on the systematic review approach, involving synthesis- and interpretation-based assessment. The results demonstrate how most of the studies analyzed focus on the consumer perspective in terms of usage, share, and influence of social media on consumer decisions, and perceptions. The studies focusing on the firm’s perspective centered not only on the usage of social media, but also on their implementation, optimization, and measurement of results. The majority of studies are quantitative and published in recent years. This study not only reached certain conclusions for both theory and practice, but also defined future lines of research according to the gaps detected by the study’s results. © 2016 Wiley Periodicals, Inc.

The emergence of new information and communication technologies, particularly the Internet and social networks, has changed market dynamics, threatening the competitive positions of firms (Porter, 2001) and increasing the power of consumers (Urban, 2005). The Internet- and online-based social media have changed consumer consumption habits by providing consumers with new ways of looking for, assessing, choosing, and buying goods and services (Albors, Ramos, & Hervas, 2008). These developments influence how marketers operate and affect marketing practices in terms of both strategy and tactics by presenting marketers with new challenges and difficult choices (Thomas, 2007). We understand social media as including all Internet-based technological applications, in accordance with the principles of Web 2.0 and providing the creation and exchange of user-generated content, while also facilitating interaction and collaboration between participants (Kaplan & Haenlein, 2010). Such applications also include blogs and microblogs (such as Twitter), social networking sites (such as MySpace and Facebook), virtual worlds (such as Second Life), collaborative projects (such as Wikipedia), content community sites (e.g., YouTube, Flickr), and sites dedicated to feedback (e.g. online forums; Chan & Guillet, 2011; Mangold & Faulds, 2009).

According to Mangold and Faulds (2009), social media enables firms to communicate with their customers and also allows customers to communicate with each other. Communications between firms and their customers help build brand loyalty beyond traditional methods (Jackson, 2011; Kaplan & Haenlein, 2010), which concede to the promotion of products and services as well as the setting up of online communities of brand followers (Kaplan & Haenlein, 2010). Furthermore, conversations between customers provide firms with new means of increasing brand awareness, brand recognition, and brand recall (Gunelius, 2011). Researchers such as Castronovo and Huang (2012) maintain that marketing strategies involving marketing intelligence, promotions, public relations, product and customer management, and marketing communications should begin exploring and leveraging social media, not only because there is a growing interest among consumers in Internet usage, but also due to the fact that consumers consider information shared on social media as more reliable than information issued directly by firms (Constantinides et al., 2010). According to eMarketer (2013), firms have increasingly adopted social media for various marketing activities such as branding, market research, customer relationship management, service provision, and sales

Psychology & Marketing, Vol. 33(12): 1029–1038 (December 2016) View this article online at wileyonlinelibrary.com/journal/mar © 2016 Wiley Periodicals, Inc. DOI: 10.1002/mar.20936 1029

promotion alongside various studies that are putting forward evidence of the positive implications of deploying social media in marketing strategies. However, many firms have yet to incorporate social media into their strategies (Chan & Guillet, 2011) despite the existence of diverse studies providing empirical evidence of the benefits to companies (see, e.g., Alhabash, McAlister, Quilliam, Richards, & Lou , 2015; Kozinets, Valck, Wojnicki, & Wilner, 2010; Kumar & Mirchandani, 2012; Kumar et al., 2013; Luo & Zhang, 2013; Yu, Duan, & Cao, 2013), as well as detailing the means by which social media marketing strategies may be improved and leveraged (see, e.g., Guo, Pathak, & Cheng, 2015; Liu & Park, 2015; Lorenzo-Romero, AlarcónDel-Amo, & Constantinides, 2012; Qazi, Raj, Tahir, Cambria, & Syed, 2014; Tang et al., 2015). Given the limited scope of research into the different aspects of social media, as well as their specific significance to company marketing activities, this article carries out a review of the literature on social media marketing. The purpose of this article is also to identify the fields of marketing where social media marketing strategies have been applied and studied, the results found, the types of research developed, and what implications might be drawn from these studies for both management practice and theory. To the best of our knowledge, there has been no generic review of social media marketing, and thus this article makes a relevant contribution to this field of research. Hence, our aim involves contributing to deepening and systemizing the study of social media marketing by surveying the most prominent lines of research as well as those requiring further study. In addition, by systemizing the conclusions of various social media marketing studies, we also deepen the knowledge firms require in order to either take their first steps or strengthen their recourse to social media for strategic purposes.

METHOD Within the scope of our objective of providing a systematic review of literature on the “social media marketing” concept, we put forward two stages in this section: (1) planning the review, which describes the way in which we planned our systematic approach alongside references to those authors following a similar methodology; (2) conducting the review and analysis, where we set out a description of the various phases of the review and the systematization of the selected literature.

PLANNING THE REVIEW To ensure replicability for future researchers, we follow a systematic review process. This is generally understood as an overall perception of trust in the scientific research existing in any field or topic (Pet-

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ticrew & Roberts, 2006). Its aim is to identify, assess, and summarize all relevant studies using a replicable and transparent process (Tranfield, Denyer, & Smart, 2003). We explained the criteria for the bibliographical research, for admission and exclusion, and the analytical processes, thus providing a means to audit the processes. As the field of research in social media marketing proves quite recent and diverse, we here apply a variation of systematic review, involving synthesisand interpretation-based assessment, in order to combine the best evidence based management practices (Macpherson & Holt, 2007; Thorpe, Holt, MacPherson, & Pittaway, 2005; Tranfield et al., 2003).

CONDUCTING THE REVIEW AND ANALYSIS In the first phase of gathering references for our study, we began by researching the Web of Science for all titles containing the words “social media marketing.” Following this, we then excluded books, book chapters, reports, and conference proceedings due to the variability in their respective peer review processes and more restricted availability. In contrast, journal articles were deemed to have been duly validated (Podsakoff, MacKenzie, Bachrach, & Podsakoff, 2005). Thus, we did not restrict the research to periodicals with the greatest impact on their fields but rather included all the articles from journals indexed by the Web of Science containing the expression “social media marketing.” We did not define any time frame for publication and our initial search returned 108 articles. In the second phase, we carried out analysis in order to verify whether the studies already identified were appropriate to the purposes of this research. In this phase, we retained only those articles from English language publication and that were neither proceedings nor commentaries. Following this procedure, we excluded 63 articles and maintained 44. The third phase of this study involved individualized and independent analysis of the articles by two researchers through recourse to a predefined evaluation grid that incorporated the analysis of the social media marketing concept applied along with the respective methodology, study type, sector, and the social media channel utilized in the study along with the main conclusions. This grid was subsequently compared and refined. In the fourth and final phase of our study, we completed content analysis and systematized the 44 articles, and to this end making recourse to NVivo (version 11.0) software. Based on these results, we extracted summarized information on the subject to analyze in terms of the type of study, type of analysis, conclusions, scope, and similarities among the studies.

ALVES, FERNANDES, AND RAPOSO Psychology & Marketing DOI: 10.1002/mar

Figure 1. A representation of the 100 words (with more than four letters) most used in the articles analyzed.

AN OVERVIEW OF RESEARCH ON SOCIAL MEDIA MARKETING The Concept of Social Media Marketing Our first analytical stage consisted of trying to systemize the concept of social media marketing based on the definitions appearing in the articles. However, we found only the article by Chan and Guillet (2011) actually presented a definition of the social media marketing concept based on the AMA (American Marketing Association) definition of marketing in 2006; a definition that was reviewed and updated by the AMA in 2013. Hence, in terms of systemization, we may only state that practically all these studies approach the concept of social media marketing as a transposition of the marketing concept applied to social media with no author highlighting any particularities to applying the marketing concept in this domain.

Areas of Study The next stage deployed exploratory analysis of the content of the various studies analyzed. Figure 1 sets out the results in a representation of the 100 words with more than four letters that were most frequently mentioned in these articles. As Figure 1 demonstrates, the most prominent words are social media marketing, in agreement with the area of study but appearing interrelated with others on a secondary level in which the words Facebook, online, information, and brand stand out, which to some extent anticipate the content of these articles as we demonstrate further on in the article. After analyzing the dates of the articles, which vary from 2010 to 2015, the majority appear in the last two years, conveying the growing importance of this subject.

IMPLICATIONS OF SOCIAL MEDIA MARKETING Psychology & Marketing DOI: 10.1002/mar

Figure 2 presents the results of the cluster analysis that enabled the grouping of the analyzed articles in terms of the similarity of the words used based on the Pearson correlation coefficient. As observed, the cluster analysis allows for the identification of various groups of articles that prove more similar to each other when the figure is read from right to left. Analyzing Figure 2, we understand how there are clearly two main and mutually distinct clusters. The first article cluster (identified at the top of Figure 2) above all spans articles studying social media marketing as a means for managing relations between clients and for fostering customer engagement. While the cluster containing the rest of the articles, although more diverse in nature, above all, contains articles approaching the management of marketing content and the social media and its respective implications. Our analysis also confirms that social media marketing has been approached across rather diverse fields as reflected in the distance between some of the articles analyzed, for example, the article by Ubeda, Gieure, De-la-Cruz, and Sastre (2013) (in the extreme top left) focusing on usage of social media by technology-based firms and the articles by Hoffman and Fodor (2010) and Kumar and Mirchandani (2012) (in the extreme top right) focusing on measuring the return on investment in social media marketing campaigns. This project also considered whether the empirical studies analyzed focused more on consumer or firm/organization perspectives, the subject studied, and their respective key conclusions (Table 1). As observed in Table 1, the greatest number of studies focuses on consumer perspectives. Of the studies focusing on firm/organization perspectives, those describing the degree of use and facility of using social media by firms/organizations predominate alongside the results of social marketing strategies and also unethical usage of social media marketing strategies, in this specific case, by alcohol brands directed at adolescents. In regards to studies focusing on consumer behavior, four major lines of research stand out: (a) studies of the influence of social media on increased consumption by consumers, (b) studies of the usage, searching, and sharing of information by social media consumers, (c) studies of the influence of social media on consumer attitudes toward brands, and (d) studies of how the influence among consumers gets processed through social media. These studies in turn reveal how microblogs and social networks are the social media most commonly adopted by firms, specifically Facebook (17 studies) and Twitter (12 studies), with Myspace and YouTube also encountered in three and two studies, respectively. However, these studies also reported that in some sectors, for example, in health, tourist destination management, and in the B2B context, their usage still remains limited. The studies also conclude that social media marketing actions impact company market values, their sales and word of mouth; above all, opinion leaders use and share information on social media

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Figure 2. Article grouping based on the similarity of their words.

and that their influence on other consumers depends on their characteristics and overwhelmingly conveyed by their communication networks rather than through their contact networks; the messages and content of social media cannot be the same for utility and hedonic products; these are perceived differently by individuals with different levels of trait reactance; the more personalized applications are, the greater their success; and social media marketing actions and campaigns contribute to improving consumer attitudes toward brands similar to that proposed by Kaplan and Haenlein (2010), Gunelius (2011), and Jackson (2011).

Type of Study Finally, the typology of studies was analyzed regarding the type of analysis carried out. As Table 2 sets out, four studies are purely theoretical, 39 are empirical and, of those, 29 are quantitative, 5 are qualitative, and 5 apply mixed methodologies and demonstrate a

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predominance of quantitative techniques in the study of social media marketing. In the quantitative studies, the majority apply quantitative statistical and econometric techniques such as linear regressions, structural equations, and stochastic analysis, while in qualitative studies content analysis predominates. Analysis of Table 2 confirms that qualitative methodologies still remain scarce in this field even if these open up understandings of the meanings to the phenomena under study (Patton, 2002).

IMPLICATIONS AND FUTURE LINES OF RESEARCH From the results presented by the various different studies, we may identify various implications both for theory and for practice. One of the conclusions reached by the studies refers to how microblogs and social networks, such as Facebook and Twitter, constitute the


Table 1. Analyzed Study Focuses. Focus of Study Firm/organization

Subject Analyzed

Studies

Degree of use and facility of using social media

- Microblogs and social networks are the Ashley and Tuten (2015), Chan and Guillet (2011), Enli and most commonly used means Skogerbø (2013), Hays, Page, - Sites managed by the firm itself have ¨ and Buhalis (2012), Keinanen better results and Kuivalainen (2015), - The use of social media is still Koumpouros, Toulias, and restricted in some Koumpouros (2015), Mackey sectors/organizations, such as health, and Liang (2013), tourist destination management Michaelidou et al. (2011), and organizations, and in B2B, where this Ubeda et al. (2013) often depends on the individual and private use of social media by professionals in these sectors/organizations - It is very easy to begin using social media

Optimization, measurement, and impact of social media marketing strategies

- Social media sentiment has a stronger Kozinets et al. (2010), Kumar and Mirchandani (2012), impact on firm stock performance than Kumar et al. (2013), Luo and conventional media Zhang (2013), and Yu et al. - Word-of-mouth messages are adapted (2013) by the senders according to the receiver - Consumer buzz and online traffic explain part of the company’s value - Social media can be used to generate increased sales, return on investment, word of mouth, and spread information about brands

Abusive/unethical use

Consumer

Main Conclusions

Increased consumption

Use, search, and share of information

Nicholls (2012) Communications made by firms on social media can lead to risk behaviors by consumers - Messages on social media contribute to Alhabash et al. (2015), Hoffman et al. (2014), and Hong (2012) increased consumption of the products targeted Bilgihan et al. (2014), Chang - Opinion leaders search for and share et al. (2015), Lorenzo-Romero more information in social media ¨ uven ¨ et al. (2012), Ozg and - Participation and sharing of Mucan (2013), Schulze et al. information varies according to the (2014), La Torre, Miccoli, and demographic and behavioral Ricciardi (2014), and characteristics of social media users Workman and Gupta (2013) - Strategies of social media marketing for utility products cannot be based on the same mechanisms as hedonic products - The most popular smartphone applications are those that allow the uploading of photos and their personalization - The popularity of a post influences its sharing

(Continued)

social media, so far, most commonly deployed by companies (Chan & Guillet, 2011; Enli & Skorgerbo, 2013). Furthermore, these are the means that prove able to return the best results in terms of attitudes toward the brand (Kim & Ko, 2012; Kumar & Mirchandani, 2012;


Kumar et al., 2013) and companies should therefore ensure their presence in these channels but, on the other hand, leaving open the scope for company recourse to other social media platforms. According to Mangold and Faulds (2009) and Chan and Guillet (2011), there are

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Table 1. Continued. Focus of Study

Subject Analyzed

Main Conclusions

Studies

Attitude toward the brand

- Messages on social media contribute to Cambria, Grassi, Hussain, and Havasi (2012), Chen et al. improved attitudes toward the brand, (2015), De Vries et al. (2012), increased word of mouth and customer Kim and Ko (2012), Lee et al. equity (2015), Lee, Xiong, and Hu - Positioning the brand post on top of (2012), Leung, Bai, and the brand fan page enhances brand Stahura (2015), Rishika et al. post popularity (2013), Smith, Fischer, and - Vivid and interactive brand post Yongjian (2012), and Zadeh characteristics enhance the number of and Sharda (2014) likes - The share of positive comments on a brand post is positively related to the number of likes - People with different levels of trait reactance respond differently toward the same marketing attempt - Twitter and Facebook seem to be the best means to improve consumer attitudes toward the brand - - The time and the number of followers of a brand post are determinant in measuring the post’s popularity

Influence among consumers

Guo et al. (2015), Liu and Park - It is more reliable to forecast the (2015), Qazi et al. (2014), and influence on individuals through their Tang et al. (2015) network of effective communications in social media than through their list of friends - The usefulness of an assessment depends on the characteristics of the message but also on the characteristics of the individual making the assessment - The SVM ranking model can help to determine which users recommend to other users

SVM = support vector machine.

various means of social media, among them, in addition to the aforementioned social network sites, virtual worlds, content community sites, and sites dedicated to feedback. This points to the need to analyze the behaviors of consumers in these different channels, the differences in consumer behaviors across the various channels, and the contribution of these other means that have not been studied yet, the similarities that occur between Facebook and Twitter, moving toward increased sales, word of mouth, and profits. Another conclusion with major implications for companies derives from how social media marketing strategies hold the capacity to impact the market value of firms and businesses. Social media enable and empower word of mouth (Luo & Zhang, 2013; Yu et al., 2013) as well as the capacity to generate added sales (Kumar & Mirchandani, 2012). However, these findings high-

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light how this extends beyond simply maintaining the presence in social media. Obtaining success from company social media marketing strategies requires eliciting strong feelings among users (Chen, Kim, & Lin, 2015; Lee, Gallagher, Liebman, Miller, & Marlenga, 2012). This may result not only from vivid and interactive brand posts, by positioning the brand post at the top of the Web page (Chang, Yu, & Lu, 2015; De Vries, Gensler, & Leeflang, 2012), among other marketing techniques, but also from the involvement of consumers in social media initiatives and campaigns (Rishika, Kumar, Janakiraman, & Bezawada, 2013). Our results also stress how opinion leaders channel and share the greatest amount of information on social media (Bilgihan, Peng, & Kandampully, 2014) and should correspondingly constitute the preferential targets of any social media marketing strategy. Through


Table 2. Analyzed Article Systemization of Objectives and Types of Analysis. Type of Study

Type of Analysis

Theoretical

Empirical study Quantitative

Experimental analysis Structural equation analysis

Descriptive statistics

Regression analysis

ANOVA analysis Several analyses and indexes

Qualitative

Mixed

Latent segmentation analysis vector autoregression with exogenous variables (VARX) model Web search analytics Ranking SVM model Econometric analysis Stochastic analysis Content analysis

References Hoffman and Fodor (2010), Jara, Parra, and Skarmeta (2014), Lee et al. (2012), and Malthouse, Haenlein, Skiera, Wege, and Zhang (2013) Alhabash et al. (2015) and Chen et al. (2015) Bilgihan et al. (2014), Chang et al. (2015), ¨ Keinanen and Kuivalainen (2015), Kim and Ko (2012), and Leung et al. (2015) Chan and Guillet (2011), De Vries et al. (2012), La Torre et al. (2014), Michaelidou et al. (2011), and Ubeda et al. (2013) Guo et al. (2015), Hoffman et al. (2014), Hong (2012), Liu and Park (2015), and Schulze et al. (2014) Koumpouros et al. (2015) and Okazaki, Navarro, and López-Nicolas (2011) Kumar and Mirchandani (2012), Kumar et al. (2013), and Rishika et al. (2013) Lorenzo-Romero et al. (2012) Luo and Zhang (2013)

Mackey and Liang (2013) Tang, Ni, Xiong, and Zhu (2015) Yu et al. (2013) Zadeh and Sharda (2014) Ashley and Tuten (2015), Enli and Skogerbø (2013), Nicholls (2012), and Kozinets et al. (2010) Semantic Web analysis Cambria et al. (2012) Content analysis and counts Hays et al. (2012) Semantic analysis and experimental study Lee et al. (2015) Machine learning, Content analysis, Logistic Qazi et al. (2014) regression, etc. Content analysis, Poisson regression, and Smith et al. (2012) log-linear analysis Content analysis and counts Workman and Gupta (2013)

SVM = support vector machine.

these opinion leaders, such strategies prove to generate buzz words about the company and its products. However, in terms of future lines of research, there is still a need to better understand just how online sharing of information takes place, which in turn shapes the co-creation of value by consumers and to this end making recourse to social network theories, for example, to better grasp the relationships and the spread of information across human online networks. The results also demonstrate how companies are not able to deploy but a single strategy for social media marketing because, on the one hand, individual characteristics such as different levels of trait reactance end up influencing the ways in which consumers react to ¨ uven ¨ these strategies (Lee, Kim, Lim, & Kim, 2015; Ozg & Mucan, 2013) and, on the other hand, because the characteristics of products, for example, with hedonistic versus functional appeals, also condition the respective social media marketing strategies (Schulze, Schöler, & Skiera, 2014) and require different approaches to ensure the deployment of effective and efficient strategies.


The results also convey how the majority of studies focus on understanding the aspects related to consumer behaviors in social media, and so more studies, focusing on firms, their various facets, especially barriers to social media usage, measuring returns on investment, ways to optimize strategies, among others, may prove future paths for research. In addition, firms need models to analyze the returns on investment in social media. Some studies already take this approach, for example, we would highlight those by Hoffman and Fodor (2010) and Kumar and Mirchandani (2012). Nevertheless, more studies are necessary both to confirm the results found by these authors and also to analyze the models developed by other, less studied, social media. Regarding recourse to the usage of social media in the B2B context, this proves still limited in scope (Keinanen & Kuivalainen, 2015; Michaelidou, Siamagka, & Christodoulides, 2011; Ubeda et al., 2013) and hence more studies in this area are necessary, particularly targeting possible utilizations of some

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social media that displays a more professional orientation, by which firms can obtain resources for the creation of value, for example, LinkedIn. Another line of research that does not appear in the articles analyzed encapsulates the formation of social capital by consumers through their participation in social media and the implications for creating value from firm products and services. As mentioned by Akaka, Vargo, and Lusch (2012), the focus on value creation lies in the individual capacity of actors to adapt and integrate the resources they access through their social networks in the meanwhile enhanced and increased by social media. Finally, the results demonstrate how the majority of studies adopted quantitative approaches and thereby indicating the need for more qualitative approaches to understand consumer social media behaviors.

CONCLUSIONS AND LIMITATIONS Given the scarcity of studies systematizing the information conveyed by the research done thus far on the field of social media marketing, we carried out this systematic review of the literature on this theme. The results show that the majority of studies have hitherto focused either on analyzing the consumer perspective on social media marketing in an attempt to perceive how they react to these means or on how companies are able to extract the maximum possible value from recourse to such channels for managing their relationships with clients. However, more studies are necessary to explore the perspectives of companies as they engage in social media marketing, especially in terms of understanding the key barriers and obstacles to their usage. The results also point to the need for qualitative studies to better grasp recourse to social media marketing utilization within the framework of marketing strategies. The main limitation of this study would be the fact that the research was limited to the term “social media marketing,” considering only the Web of Science database, and only including articles in journals. Therefore, complementary analysis including other databases would be necessary to confirm this study’s conclusions.

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The authors are grateful for the support and funding from Portuguese Science Foundation through the project “UID/GES/04630/2013.” Correspondence regarding this article should be sent to: Helena Alves, Management and Economic Department, University of Beira Interior and NECE, Estrada do Sineiro, 6201˜ Portugal ([email protected]). 209 Covilha,
