Factors of Social Media Utilization among Small Business Enterprise in Davao

City

Sir Christian Guerrero

09177050814

Master of Business Administration

February 2019
 Approval Sheet

This Research entitled “FACTORS OF SOCIAL MEDIA UTILIZATION

AMONG SMALL BUSINESS ENTERPRISE IN DAVAO CITY A.Y 2018 - 2019”

Prepared and submitted by Sir Christian S. Guerrero in partial fulfillment of the

Requirement for the degree of MASTERS OF BUSINESS ADMINISTRATION has

Been examined and hereby recommend for approval and acceptance.

Joel Tan

Research Adviser

APPROVED by the committee for oral Examination

Chair

Member Member

Member Member

Accepted in partial fulfillment of the requirements for the degree of MASTERS

IN BUSINESS ADMINISTRATION.

February 2019
 TABLE OF CONTENTS

Title Page……………………………………………………………………………………...i

Approval Sheet………………………………………………………………………………ii

Table of Contents…………………………………………………………………………..iii

Introduction…………………………………………………………………………….…....1

CHAPTER

I. Introduction

Rationale…………………………………………………………………………1
 Chapter I

Introduction

Rationale

People now a days preferred online shopping, it lets buyers to save time, and

Effort because it can be done anywhere, anytime where there is an internet access.

Building a relationship with the customer is very important. By setting goals and

Engaging a two way interaction with the customers helps your business credibility and

build a trust and loyalty with customers. How social media can be effective as a

marketing tool for small business enterprise (Abdulwahab Al-Sadani, 2015.)

Internet is everywhere, there has been a social media surge in the past decade.

Today social media consist of thousands of platforms serving the same but different

purpose. Most Business today are using social Media to promote their products or

services. Every business today need a leverage in social media in the best possible

way. Social media play a vital role in marketing and creating relationships with

customers. This research aims to acquire an initial understanding of how a small

business recognized for using social media to grow the business, uses social media to

engage customers.
 Like everything else, it has good and bad. It has actually change our lives in

many ways since its introduction. There are many social media platforms that can help

our business and at the same time can do bad as well. Knowledge and understanding

of every social media platform is a must. To fully utilize the maximum Potential of the

social media and use it in your advantage.

The purposed of this study is to research the effectiveness of social media in

small business. In addition it gives insights on how business organization can use

social media as a leverage to achieve their goals and objectives. Some research

strategy in large organizations only, however, is that those same strategies do not

necessarily work for small businesses.

Research Objectives

In general objectives in this age of globalization communication has become

effective as never before. The social media (SME) have also played a crucial role in

business.

1. To identify the influence of social media sites in small business.

2. To determine the hierarchy of the factors of social media in business.

3. To Measure the social media sites display a number of advertisements for small

business.

Hypothesis

This study will test the null hypothesis at .05 level of significance.

Hₒ: There is no significant relationship between an effective social media in a

small business enterprise.

Review of Related Literature

One of a study that influence the use of social media (SME) has a strong impact

in business and cost effectiveness (Sulaiman Ainin, Farzana Parveen, Sedigheh

Moghavvemi, Noor Ismawati Jaafar, Nor Liyana Mohd Shuib 2015).

This study compliments the idea of Anna Cowden (2014). That the social media

(SME) change the company’s ways to market their products and services. Anna

Cowden (2014) states “with the increase of social media, brand marketing has been

made easier”.

According to House of IT 2018 40% of Filipinos own an active social media

account. Social media (SME) are used for purchasing products or services by 29% of

the Philippine population.

This study compliments the idea of “Social Media Marketing (SMM) can be

defined as social media channels to promote a company and its products. Rubathee

Nadaraja, Rashad Yazdanifard 2014”.

In a blog by B2B Marketing by Lauren Hybak 2013. Social media is effective

and inexpensive, and branding can be done effectively on social media that customer

acquisition is easy on social media and it enables direct customer interaction and that

the marketing can generate more leads/sales.

 In study by Gholston, Kira; Kuofie, Mattew; Hakim, Amy Cooper; 2016. That

Social Media platform is a key components in a business. Increasing brand exposure

creating relationships with the customer are essential to the businesses.

In the study of Kira; Kuofie, Mattew; Hakim, Amy Cooper; 2015. That the

“interaction takes place via social media where people are able to freely interact,

discuss, and share information using words, pictures, video, and audio. Various

websites allow both individuals and groups the ability to create and exchange

content. Social media comes in an array of forms such as blogs, forums, messaging

boards, and social networks. There are many well-known sites such as Facebook,

Twitter, Instagram, Pinterest, and many others”.

More people now a days that uses social media in their daily life whether

personal use or business use. Social media is an instrument tool to share and discuss

information. Abu Bashar; Irshad Ahmad; Mohammad Wasiq, 2012.

Practices among small businesses utilize social media as their marketing tool

in an efforts to improve their reputation, increase customer interest and awareness,

and promoting their business to new customers. Broekemier, Greg; Chau, Ngan

N; Seshadri, Srivatsa 2015.

Facebook

Is an American online social media and social networking service company. In

Business News Daily September 2018 post. “Having a Facebook page helps legitimize

your business in the customer’s eye”.

Social Media

Social media has shown significant growth. Effective social media as a

marketing tool for small business (Al-Sadani 2015).

Pinterest

Is a social media web and mobile application company that operates a software

system designed to discover information on the World Wide Web. Impacts of Pinterest

consumers experiences (Vasquez 2014).

Twitter

Is an American online news and social networking service on which users post

and interact with messages known as ‘tweets”. People are compelled to click the

hyperlink and navigate to another pages. Social networks are important such as viral

marketing, news propagation and personalization (Sarabchi).

Instagram

Is a photo and video-sharing social networking service owned by Facebook.

Company can use the Instagram (IG) as a mediator between their company brand

identity and consumers perception of their brand image (Emmy, Anderson; Eriksson;

Karlsson 2015).

Youtube
 Is an American video-sharing website. In the post of PHYS ORG, Youtube is

ideal online environment of various media content and peer feedback on adolescents

(Liebert 2013).

Skype

Is an IP telephone that offers free calling from other Subscribers Video chat and

voice conferencing. In a post by Techadvisory.org in 2016 Skype for business is fully

integrated with a host of other useful application that you can share files with other

participants.

WhatsApp

Is a freeware and cross-platform messaging and voice over IP service owned

by facebook. In WhatApp blog 2018 it instroduces the WhatsApp Business App. Help

customer with useful information such as business description. And provide fast

answers to frequently asked questions.

Messenger

Used to be a messaging feature within Facebook. Facebook has made

messenger a standalone app since 2011.

Theoretical Framework
 The influence of social media sites in small business, has a strong impact in

business and cost effectiveness (Sulaiman; Farzana; Sedigheh; Noor; Nor 2015).

Theoretically, the concept of social media utilization among small business is at the

center of the strategy. Most theories either implicitly or explicitly underscore the

implications. Empirically, most strategy research compliments the idea of “Social

Media Marketing (SMM) can be defined as social media channels to promote a

company and its products. (Rubathee Nadaraja, Rashad Yazdanifard 2014)”.

According to House of IT 2018 40% of Filipinos own an active social media account.

Social media (SME) are used for purchasing products or services by 29% of the

Philippine population.

Conceptual framework

The conceptual framework are abstract representations, connected to that of

independent variables to the dependent variables. The independent variable is factors

of social media utilization among small business enterprise. Practices among small

businesses utilize social media as their marketing tool in an efforts to improve their

reputation, increase customer interest and awareness, and promoting their business

to new customers. Broekemier, Greg; Chau, Ngan N; Seshadri, Srivatsa 2015. With

the following indicators such as: social media, facebook, twitter, youtube, whatsapp,

instagram, skype. The dependent variables of the predictors of Factors of social media

utilization among small business enterprise defined and discussed in the review of

literature.
 F1

F2

Small Business Enterprise

F3

F4

Figure 1. The Conceptual Framework of the Study

Significance of the Study

This study attempts to address the social media utilization among small

business enterprise in davao City. The data produce from this study will be use to

create effective business strategy plan. In addition, it gives insights on how business

organization can use social media marketing as a leverage to achieve their online

marketing goals and objectives.

References

https://www.bizible.com/blog/bid/343058/Importance-of-Social-Media-Marketing-
Among-Small-Businesses

https://www.omicsonline.org/open-access/impact-of-social-media-applications-on-
small-business-entrepreneurs-2223-5833-1000203.php?aid=71295

Kira; Kuofie, Mattew; Hakim, Amy Cooper; 2016.

https://search.proquest.com/docview/1776310675/B415FA4A3F5240E3PQ/10?acco
untid=31259

Kira; Kuofie, Mattew; Hakim, Amy Cooper; 2015.

https://search.proquest.com/docview/1843743541/B415FA4A3F5240E3PQ/9?accou
ntid=31259

Abu Bashar; Irshad Ahmad; Mohammad Wasiq, 2012.

https://www.researchgate.net/publication/281676030_EFFECTIVENESS_OF_SOCIA
L_MEDIA_AS_A_MARKETING_TOOL_AN_EMPIRICAL_STUDY

Broekemier, Greg; Chau, Ngan N; Seshadri, Srivatsa 2015

https://search.proquest.com/docview/1682657502/B415FA4A3F5240E3PQ/13?acco
untid=31259

Sulaiman Ainin, Farzana Parveen, Sedigheh Moghavvemi, Noor Ismawati Jaafar, Nor
Liyana Mohd Shuib 2015
https://www.emeraldinsight.com/doi/abs/10.1108/IMDS-07-2014-
0205?journalCode=imds
Anna Cowden 2014
https://www.scribd.com/document/351176301/MIB0614-Thesis-Anna-Cowden-
EffectofSocialMediaMarketingonTraditionalMarketingCampaignsinYoungIcelandicCo
mpanies

House of IT 2018
https://houseofit.ph/understanding-social-media-in-the-philippines-a-year-end-report/

Rubathee Nadaraja, Rashad Yazdanifard 2014

https://www.researchgate.net/publication/256296291_Social_Media_Marketing_SOC
IAL_MEDIA_MARKETING_ADVANTAGES_AND_DISADVANTAGES

Facebook

https://www.businessnewsdaily.com/5453-how-to-promote-your-small-business-on-
facebook.html

Social media
https://www.theseus.fi/bitstream/handle/10024/93713/Al
Sadani_Abdulwahab.pdf?sequence=1

Pinterest
https://digital.library.unt.edu/ark:/67531/metadc700041/

Twitter
file:///C:/Users/Administrator/Downloads/FarThesis.pdf

Intagram
http://www.diva-portal.org/smash/get/diva2:819024/FULLTEXT01.pdf

Youtube
https://phys.org/news/2013-05-youtube-effective-tool.html

Skype
http://www.techadvisory.org/2016/08/skype-for-business-and-its-benefits/

WhatsApp
https://blog.whatsapp.com/10000637/Introducing-the-WhatsApp-Business-App