1. Social Medias Impact on Business 1
WRITING 291
Synthesis Essay
Jennifer Lloyd
University of Maryland University College
This paper was prepared for Writing 291, taught by Professor Dozier

2. Social Medias Impact on Business 2
Synthesis Essay
Most people can agree that technology and the Internet have changed the way people live
however some don’t consider the major impact it has had on business. Businesses have had to
change the way they interact with customers in order to keep up with the quickly evolving e-
commerce world. Studies and articles have been written about the way businesses have had to
adapt. Many businesses have embraced social media and according to research there have been
positive effects. For instance in the article “Digital and Social Media in the Purchase Decision
Process,” the authors Todd Powers, Dorothy Advincula, Manila S. Austin, Stacy Graiko and
Jasper Snyder investigate the impact that social media has on consumers. More specifically, the
article “The Power of “Like” How Brands Reach (and Influence) Fans through Social-Media
Marketing” written by Andrew Lipsman, Graham Mudd, Mike Rich, and Sean Bruich explores
how Facebook can be used to capture more attention and brand recognition. Furthermore, the
article “One Café Chain’s Facebook Experiment,” written by Utpal M. Dholakia and Emily
Durham captures the experience of one companies Facebook Fan Page initiation and success.
Then, Scott Berinato and Jeff Clark turn attention away from Facebook and focus on ways to
utilize Twitter, another social media site used by businesses in “Six Ways to Find Value in
Twitter Noise.” In addition, Jilly Duffy gives small businesses advice on how to use social
media effectively in the article “15 Social Media Tips for Small Businesses.” Specific way to
use social media is important however understanding how consumers and businesses are affected
is equally important. Therefore the articles “Capturing Business Value with Social
Technologies” written by J. Bughin, M. Chui and J. Manyila and “A Review of Social Media and
Implications for the Sales Process” reviews the ways businesses can use social media and other
technologies as well as the effects on consumers and businesses. Lastly, “The Impact of New

3. Social Medias Impact on Business 3
Technology on Customer Satisfaction and Business to Business Customer Relationships:
Evidence from the Soft Drinks Industry” describes how technology in general has changed
businesses interactions with customers. These articles have different points yet they all agree
that consumers crave more interaction, information and the ability to express their experiences.
Social media offers the platform consumers are looking for in today’s Internet driven world. In
fact social media poses many benefits including the introduction of product, services and
promotions, promotes brand and product transparency, increases customer service and allows
companies to evaluate feedback regarding services and products.
Businesses have found new ways to introduce their brands, products and promotions
using social media. For example, in the article “Digital and Social Media in the Purchase
Decision Process,” Powers, Advincula, Austin, Graiko and Snyder state that consumers are using
social media to discover new brands and products. They also point out that consumers are not
“Always on” which means they are ready to purchase products all the time either actively or
passively. (Powers, Advincula, Austin, Graiko and Snyder, pg. 480) Moreover, in the article
“The Power of “Like” How Brands Reach (and Influence) Fans through Social Media
Marketing” the authors reiterate that social media offers ways for businesses to introduce their
brand, products and promotions to consumers and states that brand information can be easily
shared with consumers and their social network. (Lipsman, Mudd, Rich, Bruich, pg. 44-47)
Additionally businesses are always looking for new, innovative and inexpensive ways to reach
consumers, social media offers this advantage. For instance in the article “Review of Social
Media and Implications for the Sales Process” the authors quote Edwards, 2012 who states
“Facebook and Google can be “more efficient” than the traditional media that usually eats the
lion’s share of…” a large businesses ad budget. (Andzulis, Panagopoulos, Rapp, pg. 305)

4. Social Medias Impact on Business 4
Additionally, in “One Café Chain’s Facebook Experiment” the authors state that having a
Facebook presence allows consumers to spread the word and introduce the brand to other
friends. (Dholakia, Durham, pg. 26) Also word of mouth can often be the best source referrals
and can introduce a brand or product to prospective customers. Hence, businesses can convey
information about its brand or product with little to no expense while reaching prospective and
current customers. Consequently when used correctly businesses can provide clear and technical
brand and product information which leads to business or product transparency.
Customers want information about products, services and the business in which the plan
to acquire these products and services from. Today’s consumers are better informed and won’t
tolerate dubious business practices. According to the authors of “Digital and Social Media in the
Purchase Decision Process” consumers want and are able to quickly find information about
anything online, specifically through social media sites. Once a consumer feels well informed
and decides to purchase a product or service they are comforted in the fact that they made an
informed decision. (Powers, Advincula, Austin, Graiko, Snyder, pg. 486) Product information is
not the only information important to consumers, the article “A Review of Social Media and
Implications for the Sales Process” reveals that “real-time feedback from other customers,
competitors and experts’ are available for customer review”. (Andzulia, Panagopoulos, Rapp,
pg. 310) For example, Foursquare is a popular social media site that allows patrons of
businesses to check and create comments and tips for viewers and visitors to read. Additionally,
Jilly Buffy recommends that business owners add a personal touch to their company profile page
by offering information about who they are as well as relevant information about product issues,
competitors and brands. When a business is transparent the consumer begins to trust the brand

5. Social Medias Impact on Business 5
and product which leads to customer loyalty. Loyalty can be maintained by providing excellent
customer service.
Excellent customer service is essential for a business to succeed. For example, the article
“The Impact of New Technologies on Customer Satisfaction and Business to Business Customer
Relationship: Evidence from the Soft Drinks Industry” reports that satisfied customers are less
worried about price, less likely to go with a competitor and more likely to stay loyal. (Ryding,
pg. 225) Moreover, according to Bughin, Chui, and Manyika in the article “Capturing Business
Value with Social Technologies” social media forums allow businesses to communicate with
customers and provide customer service. (Bughin, Chui, Manyika, pg. 1) Some ways in which
customer service can be achieved is through listening, encouraging open lines of communication
and offering rewards to loyal customers. Listening to customers via social media is simple,
businesses should review comments left on social media sites and respond appropriately, even if
the comment is negative. As mentioned in “A Review of Social Media and Implications for the
Sales Process” listening builds trust and social media promotes and encourages listening.
(Andzulia, Panagopoulos, Rapp, pg. 310) Furthermore encouraging open dialogue with
customers will deepen connections, inspire word of mouth recommendations and build customer
loyalty according to Powers, Advincula, Austin, Graiko and Snyder. (Powers, Advincula, Austin,
Graiko Snyder, pg. 480) Although listening and communicating with customers is a great way to
increase customer satisfaction another method is to provide customer loyalty rewards. For
example in “15 Social Media Tips for Small Businesses” Jilly Duffy recommends not only
engaging with followers but also offering exclusive offers and loyalty coupons. (Duffy, pg 4)
While offering coupons and communicating with customers is going to help businesses enhance

6. Social Medias Impact on Business 6
loyalty, businesses can use social media to their advantage by uncovering what customers are
saying about their brand and product.
Companies can leverage social media to evaluate their brand and products based on
customer feedback. Customer feedback should be recognized and responded to immediately in
order for businesses to achieve the highest levels of customer service. However, as mentioned
above, businesses must listen and when they do they can learn to improve their product and
brand. According to the article “Capturing Business Value with Social Technologies” social
media can assist companies with Research and Development based on customers insights. An
example of this is when companies use social networks to create new services with clients
(Bughin, Chui, Manyika, pg. 4) In addition some social media sites allow companies to research
negative words associated with their product or brand. For example “tweets” can be utilized by
businesses to capture what consumers are saying about a brand as well as its competitors.
(Berinato, Clark, pg. 35) Moreover Facebook also allows companies to see what followers are
saying about their brand or product, this helps track word of mouth recommendations (Dholakia,
Durham, pg. 26) To sum it up Powers, Advincula, Austin, Graiko and Snyder suggest that
negative feedback allows businesses to respond and evaluate products to make improvements,
while positive feedback allows companies to share success stories. (Power, Advincula, Austin,
Graiko, Snyder, pg. 487) In conclusion social media creates an atmosphere for businesses and
customers to communicate openly and work together to improve brands and products.
Businesses can use the power of social media to effectively interact with customers. No
matter the subject of the articles, the authors agree that social media creates an opportunity for
businesses to earn customer loyalty and trust. The articles including “The Power of “Like” How
Brands Reach (and Influence) Fans through Social-Media Marketing,” “One Café Chain’s

7. Social Medias Impact on Business 7
Facebook Experiment,” “Six Ways to Find Value in Twitter Noise,” and “15 Social Media Tips
for Small Businesses,” focus on how to implement and use specific social media sites effectively.
While other articles review the specific impact social media has had on businesses and customers
including “Digital and Social Media in the Purchase Decision Process,” and “A Review of Social
Media and Implications for the Sales Process.” And finally, other articles review how all
technology has impacted businesses, as discussed in “Capturing Busienss Value with Social
Technologies” and “The Impact of New Technology on Customer Satisfaction and Business to
Business Customer Relationships: Evidence from the Soft Drink Industry.” Each article
specifically demonstrates that businesses must implement social media in order to create stronger
relationships with customers as well as build new ones. Social media allows businesses to
present their brand and products to customers in an inexpensive way. Customers can share these
brands through word of mouth via social networking sites helping businesses reach additional
prospective customers. Furthermore social media sites require businesses to be transparent since
negative reviews, competitor information and expert feedback is all available online. Moreover
transparency helps build trust with consumers. Once trust is established loyalty is soon to
follow. However in order for businesses to maintain loyalty they must offer superior customer
service and communicate with customers effectively. It is important to realize that customers
want to feel they are being heard so businesses must respond to negative and positive reviews.
As a matter of fact listening to both negative and positive feedback can enable businesses to
improve on their brand or product. Using comments left by customers, businesses can show
customers they are being heard by responding as well as creating a plan for improvement. As a
result customers will continue feeling loyal and informed. In conclusion, the articles provide
support that social media can benefit businesses by allowing them to introduce products, services

8. Social Medias Impact on Business 8
and promotions, as well as provide business and product transparency, increase customer service
and allow companies to evaluate feedback regarding products and services. Lastly, a happy
customer leads to a profitable and successful business therefore businesses should create a
customer service oriented social media platform.

9. Social Medias Impact on Business 9
References
Andzulia, J., Panagopoulous, N.G., & Rapp, A. (2012). A review of social media and implications for the
sales process. Journal of Personal Selling & Sales Management,32(3), 305-316.
Bernato, S. & Clark, J. (2010). Six ways to find value in twitter’s noise. Harvard BusinessReview,88(6),
34-35.
Bughin, J.,Chui, M., & Mayika, J. (2012). Capturing business value with social technologies. Mckinsey
Quarterly,(4),72-80.
Dholakia, U., & Durham, E. (2010). One café chain’s facebook experiment. Harvard Business Review,
88(3), 26.
Duffy, J. (2012). 15 social media tips for small businesses. PC Magazine,116.
Lipsman, A.,Mudd, G., Rich, M., & Bruich, S. (2012). The power of “like”: How brands reach (and
influence) fans through social-media marketing. Journal of Advertising Research,52(1), 40-52.
doi:10.2501/JAR-52-1-040-052
Powers,T., Advincula, D., Austin, M.S., Graiko, S., & Snyder, J. (2012). Digital and social media in the
purchase decision process: A special report from the advertising research foundation. Journal of
Advertising Research,52(4),479-489. doi:10:2501/JAR 52-4-479-489
Ryding, D.,(2010). The impact of new technologies on customer satisfaction and business to business
customer relationships: Evidence from the soft drinks industry. Journal of Retailing And
Consumer Services, 17 224-228. Doi: 10.1016/j.retconser.2010.03.008