20141221_005510.jpg
__MACOSX/._20141221_005510.jpg
20141221_005537.jpg
__MACOSX/._20141221_005537.jpg
20141221_005553.jpg
__MACOSX/._20141221_005553.jpg
20141221_005602.jpg
__MACOSX/._20141221_005602.jpg
20141221_005607.jpg
__MACOSX/._20141221_005607.jpg
20141221_005615.jpg
__MACOSX/._20141221_005615.jpg
Multi-channeling and the use of
Social Media by companies of the
Service and Product typology
A research conducted by a third year student Information Science 2012-2013 of the University of
Amsterdam for his bachelor thesis.
Student: Mentor: Second assessor:
Martijn van Tongeren A.M. Stolwijk
6288413 / 10002376
……………….……….. ……………………………… ……………………………….
Date: June 21, 2013
Abstract
The importance of social media for companies has been stressed by many researchers. Many
researchers have also discussed the differences and similarities between product and service. These
two things can be seen as the starting point of this research, which looked for differences and
similarities in multi-channeling and the use of social media by companies from both typologies.
Drawing on a sample of 384 randomly chosen companies, the results demonstrated that there is a
significant difference in the use of social media between the two typologies. We recommend the use
of social media tools and discuss why it can be of great value for both typologies.
1 Introduction
“Do you already like us on Facebook?” and “Are you following us on Twitter?” are questions
people encounter daily while browsing the internet, reading the newspaper, or watching television.
Many research papers have stressed the importance and value of social media for organizations
today (Wilson et al, 2011; Kaplan & Haenlein, 2010; Laroche et al, 2013; Lukes, 2010). The
importance of social media for companies is not only indicated by writing about the new possibilities
of social media, but also by identifying shifts in the use of existing concepts. Such a shift has
happened, for instance, with the term Willingness To Pay (WTP) which is commonly used term in
organizational and marketing literature. Instead of searching for the WTP, companies are now
searching for the Willingness to Participate (Parent et al, 2011). Goals concerning advertising,
organizing contests, distributing information, building communities etc. have been made easier for
companies by social media like Facebook, Twitter and Youtube.
Social media can both be internally and externally of significant importance for companies.
Internally, social media can play a role as social tool for knowledge sharing (Sultan, 2012). It is stated
in a research conducted by Cross et al (2001) that employees often prefer asking work-related advice
informally to colleagues rather than looking up information in a system. Externally, Social Media can
contribute very well to the Customer Relationship Management(CRM) activities of a company. With.
2. Social Media by companies of the
Service and Product typology
A research conducted by a third year student Information
Science 2012-2013 of the University of
Amsterdam for his bachelor thesis.
Student: Mentor: Second assessor:
Martijn van Tongeren A.M. Stolwijk
6288413 / 10002376
……………….……….. ………………………………
……………………………….
Date: June 21, 2013
Abstract
3. The importance of social media for companies has been stressed
by many researchers. Many
researchers have also discussed the differences and similarities
between product and service. These
two things can be seen as the starting point of this research,
which looked for differences and
similarities in multi-channeling and the use of social media by
companies from both typologies.
Drawing on a sample of 384 randomly chosen companies, the
results demonstrated that there is a
significant difference in the use of social media between the
two typologies. We recommend the use
of social media tools and discuss why it can be of great value
for both typologies.
1 Introduction
“Do you already like us on Facebook?” and “Are you following
us on Twitter?” are questions
people encounter daily while browsing the internet, reading the
newspaper, or watching television.
Many research papers have stressed the importance and value of
social media for organizations
today (Wilson et al, 2011; Kaplan & Haenlein, 2010; Laroche et
al, 2013; Lukes, 2010). The
4. importance of social media for companies is not only indicated
by writing about the new possibilities
of social media, but also by identifying shifts in the use of
existing concepts. Such a shift has
happened, for instance, with the term Willingness To Pay
(WTP) which is commonly used term in
organizational and marketing literature. Instead of searching for
the WTP, companies are now
searching for the Willingness to Participate (Parent et al, 2011).
Goals concerning advertising,
organizing contests, distributing information, building
communities etc. have been made easier for
companies by social media like Facebook, Twitter and Youtube.
Social media can both be internally and externally of significant
importance for companies.
Internally, social media can play a role as social tool for
knowledge sharing (Sultan, 2012). It is stated
in a research conducted by Cross et al (2001) that employees
often prefer asking work-related advice
informally to colleagues rather than looking up information in a
system. Externally, Social Media can
contribute very well to the Customer Relationship
Management(CRM) activities of a company. With
these social media, companies can be in touch with their
5. customers in a quick and efficient way,
which is relatively cheap when comparing it to traditional
communication channels (Kaplan &
Haenlein, 2010).
Many companies have started to use social media actively and
are planning to use it more in
the future (CIO Insight, 2012). There are multiple social media
that companies can choose to be
active at. When companies are active at more than one social
medium, they are ‘multi-channeling’;
using multiple (social media) channels to engage with their
customers. Multi-channeling can be very
interesting for companies, since on different social media, there
are different ways of communicating
and there can be a different audience. Multi-channeling can
therefore be a useful way to engage
with different kinds of users.
Social networking websites like Facebook are considered often
as marketing tools where
companies can communicate with their (potential) customers
(Weinberg & Pehlivan, 2011;
Kietzmann et al, 2011). By communicating with their ‘fans’ or
6. ‘followers’, companies can not only get
an understanding about how their followers think about their
brand or company, they can also try to
influence the opinion of these people about them. This means
that by using social media, companies
can address several marketing purposes like brand building,
building and maintaining communities
(Li & Bernoff, 2008) and monitoring and influencing the
opinions from their customers.
Both companies and their customers have an advantage in using
social media. Companies
have the possibility to gain more insight into customers’
preferences and needs which can result in
improved products or services according to the wishes from
these customers. Both the company and
the customer are profiting from this (Lukes, 2010) form of
‘collaboration’ (Li & Bernoff, 2008). The
company and the customer are working together for their own
good; to give and get the best
product or service.
Because of the great number of possibilities that social media
brings it is interesting and,
according to Li & Bernoff (2008), essential to use for
companies from any typology. Two typologies of
7. companies that are highlighted in various articles are service
and product.
Service-based companies deliver intangible services that cannot
be stored, while product-
based companies deliver tangible products that can be stored. It
might be interesting to investigate
whether they differ in their use of social media since they differ
in their way of operating. The service
industry is rather big in the Netherlands; more than ¾ of the
employment is in the service sector and
it ensures around 74% of the Gross National Product (Kwakman
et al, 2010). There is reason to
believe that companies in the Netherlands are active at social
media since there are many active
users (Newcom Research & Consultancy, 2013) and over 90%
of the inhabitants have access to the
Internet (Marketingfacts, 2012). Therefore, the main question
that will be answered in this paper is:
“What are the differences and similarities in Multi-channeling
and the use of Social Media by
companies from the Service- and the Product typology in the
Netherlands?”
8. The purpose of this paper is to give recommendations according
to the findings of the
research that has been done.
2 Theoretical Framework & Hypotheses
2.1 Social Media
In order to define the concept social media, it is important to
look at the foundations of this
phenomenon. Web 2.0 and social media are terms that are much
used with each other, while social
media is only one of the many applications from Web 2.0. The
Web 2.0 is a term which has been
used for the first time in 1999 (DiNucci) and it is connected
with the O’Reilly Web Media 2.0 Seminar
that was being held in the end of 2004. The term is being used
to describe websites that use the
technology in such a way, that it goes beyond the static Web 1.0
pages. The Web 2.0 is not a real
technological upgrade, but more like an upgrade in the use of
the web (O’Reilly, 2005; Huizing en de
9. Vries, 2007). While Web 1.0 was seen as a read-only web with
static pages containing information
with no or very few possibilities for interaction, Web 2.0
became a read/write or participatory
medium (Aghaei, 2012).
Social media are real Web 2.0 applications where each person
can participate. You can
watch, add and share texts, images, sounds and videos. Due to
this, it is now possible to spread
information in a very quick way. Social media is defined by
Kaplan & Haenlein (2010, p. 61) as
following: ”Social media is a group of Internet-based
applications that build on the ideological and
technological foundations of Web 2.0, and that allow the
creation and exchange of User Generated
Content“.
2.2 Multi-channeling
This research looks into the difference in multi-channeling of
social media by companies from
the service and product typology. Both Verhagen & van Dolen
(2009) and Ofek et. Al (2010) use the
term multi-channeling when companies are operating both
online and offline, for instance, when
10. having a web shop and an offline store. De Vries (2003, p. 1)
defines the concept multi-channeling as
“The use of multiple channels to distribute services [or
information]”. This research will look at multi-
channeling at the level of social media. Companies will be
studied concerning their accounts and
activities on four different social media channels: Facebook,
Twitter, Youtube and Google+.
According to a research of Newcom Research & Consultancy
(2013), the first three of these
social media channels are (together with LinkedIn) used the
most in the Netherlands. In this research
13.740 people, aged 15 years or older, were asked about their
social media use. Based on this
sample, a prediction has been made about the social media use
in the Netherlands, where Facebook
is leading with 7,9 million users, from which 5 million are
active daily. Youtube follows with 7,1
million users, from which 0,9 million are active daily. LinkedIn
has 3,9 million users, from which 0,4
million are daily active. Finally, Twitter has 3,3 million users,
from which 1,6 million are active daily.
This research will mainly concentrate on the use of social media
channels from companies that focus
11. on Business to Customer (B2C) relations. Since LinkedIn is
mainly a professional network that focuses
on working people and Business-to-Business (B2B) relations, it
is not included in this study.
2.3 Service & Product
Researchers’ opinions about the difference between a product
and a service are really
divided in the scientific world. The most common used aspects
of a service are that it is intangible
and that the production and consumption of it often happens
simultaneously, or right after each
other. Kotler (1977) defines service as following: “Services is
any activity or benefit that one party can
offer to another that is essentially intangible and does not result
in the ownership of anything”. It has
several implications for the concept service when assuming the
intangibility and simultaneity from
production and consumption (De Vries, 2003): Services are
difficult to resell, services cannot be
stored in a warehouse and the customer often participates in the
service process. Hill (1977) focuses
12. more on the client in his definition: “[A service is] a set of
processing operations carried out by a
service provider on behalf of a client, in a medium held by the
client, and intended to bring about a
change in this medium”. Finally, Flikkema et al. (2007) are
looking more at what the service delivered
can change for a customer: “A service is an attempt to transform
customer B’s reality C, as
constructed by its service provider A, at the request of B and
frequently in cooperation with B”.
Any of the aforementioned definitions can bring doubtful cases
when deciding whether it is a
service or a product, like consuming fast food or delivering a
car. In this paper the focus is mainly on
the definitions given by Kotler (1977) and De Vries (2003).
Contrary to services, products are tangible and can be stored.
When a customer purchases a
product, he or she often becomes an owner of the product and
reselling it is often not a problem.
Products and services are terms that are sometimes difficult to
use and assign since they are two
closely aligned concepts. Some definitions of a product even
include services since a service could
also be seen as a product: “[A product is] anything that can be
13. offered to a market for attention,
acquisition, use or consumption that might satisfy a want or
need. It includes physical objects,
services, persons, places, organizations and ideas” (Kotler,
2008, p. 500).
To make the concepts more concrete, products and services can
be distinct in 4 different
categories: “tangible goods[1], tangible goods with supporting
services[2], services with added
goods[3] and pure services[4]” (De Vries, 2003, p. 27). The
first two categories will be used to classify
a product, and the last two categories for a service. The
difference between these two typologies
have been defined here, so that classifying the companies that
will be studied will not be a problem.
2.4 Hypotheses
The question that is to be answered in this paper is “What are
the differences and similarities
in multi-channeling and the use of social Media by companies
from the service- and the product
14. typology in the Netherlands?”. This question is very relevant
today as social media are all around us.
Since product and service based companies have a different way
of operating, it is expected that
there is a difference in multi-channeling and their use of social
media as well. Therefore, the
following hypothesis is stated:
H1: There is a difference in multi-channeling and the use of
social media when comparing
companies from the two different typologies
This research looks at two aspects in the use of social media:
Multi-channeling and the use of
social media. It is expected that the service typology uses less
social media than companies from the
product typology, since there are not many companies of this
typology that are actively engaging
with their customers via social media. Therefore, the following
hypotheses are stated:
H2a: Companies from the service typology use less social media
than companies from the
product typology
15. H2b: Companies from the service typology perform less
activities on social media than
companies from the product typology
3 Methodology
3.1 Research design
A quantitative desk research is chosen to study the social media
use of companies from the
service and product typology. The companies studied consisted
of randomly chosen businesses
whose names start with the letter ‘a’. The companies were
chosen from the database of the Kamer
van Koophandel (KvK); a chamber of commerce where every
legal company from the Netherlands
has to be registered.
Only companies whose name starts with the letter ‘a’ and
sometimes with ‘b’ were studied,
due to the non-usability of the KvK database: In order to get
access to company names randomly
from the entire database (numbers ranging from 1 to 892.851),
it was needed to click through 89.285
pages. The KvK database does not allow to save the current
query and during the visit to their
16. database, it crashed several times which resulted in starting
over clicking through 89.285 pages. This
was impossible to realize, so it was decided to only take the
start of the database by sorting it on the
alphabet and using the letters ‘a’ and sometimes ‘b’.
When accessing the database, a choice was made to only display
the economically active
businesses, so that inactive companies would not endanger the
reliability of our research. Also, only
head offices from companies were selected to be shown in the
database, so that franchise
organizations would not have their name listed more than once.
Finally, to assure a representative
sample several company names were replaced when they
occurred more than twice and implied the
kind of business they were. As replacement for these
companies, businesses starting with the letter
‘b’ were chosen from the database. Examples that have been
replaced are companies that started
with car(auto), administration(administratie) and atelier.
384 Companies were studied, which is a representative sample
with a confidence level of
17. 95% of the entire database of 892.851 with the selections:
� =
�2(��)
�2
Where n = 384, z = 1,96 (for a confidence level from 95%), p =
0,5, q = 0,5 and an error marge ‘e’ of
0,05 (Burns & Bush, 2006).
3.2 Measures
3.2.1 Multi-channeling
First of all, the aspect of multi-channeling will be addressed.
Intentionally, the three most
common used social media in the Netherlands were studied, but
after performing a pilot on ten
companies, it was realized that a fourth social medium could be
worth looking into: Google+. As final
measures we decided to look at: Facebook, Twitter, Youtube,
Google+ and ‘Others’. Besides stating
which social media the companies are using, we counted the
number of different social media
companies were active at, in order to get an idea of the multi-
18. channeling they practice.
3.2.2 Activities
Businesses have been studied based on the following five
activities. Performing these kind of
activities on social media can be of a high value for companies
since social media helps them to
expand their reach relatively cheaply and quickly (Kaplaen &
Haenlein, 2010).
3.2.2.1 Free product reviews over Social Media
An activity that can be very valuable is giving away a product
in exchange for product reviews
over social media. An example of a company that got a boost in
their revenue after performing this
activity is Ford (Wilson et al. 2011). They gave away 100 cars
for free to 100 people who were active
on social media and had a big social network. The users
uploaded their experiences with the car by
posting messages, pictures and video’s. This resulted into an
incredible amount of attention which
had never happened before with a ‘normal’ campaign.
19. 3.2.2.2 Competitions
Another activity that is often seen on social media are
competitions. Users can compete with
each other to win a prize. Since they compete over social media,
it can also be followed by their
network. Competitions can therefore increase the awareness and
acquaintance of a brand or
company. An example of such a competition is the design
competition from the Belgian beer brand
PALM. In 2012 they created a competition where people could
design a new PALM can, by making
scratches on it.
Competitors could upload a picture of their submission on
Facebook and the best three
designs were chosen for the final. The winner was chosen by the
amount of likes and shares given by
Facebook users. During this action, PALM attained many more
fans, which made this action a great
success for them.
3.2.2.3 Discount/Free item
A third activity that is seen a lot, is companies offering
discounts or free items in return for an
20. action (‘liking’, ‘sharing’, ‘tweeting’, ‘reacting’, etc. ) on social
media performed by the user. To
illustrate this activity with a few examples: LIDL (a
supermarket) gave away free advent calendars in
December 2012 in return for liking their page. Their page grew
rapidly. In May 2013, they had
250.000 likers and as a thank-you towards these likers they gave
free ice-creams away to people who
had liked their page.
Another part of this activity is offering discount. An example of
a company that uses this
activity is Kentucky Fried Chicken (KFC). They sometimes
upload discount vouchers on their Facebook
page, which can be printed by their likers to receive discount in
a KFC restaurant.
Another form of this activity worth mentioning is receiving a
free item or discount, with a bit
less certainty; a lottery. Often this is for bigger or more
expensive products or services. Companies
show a picture from one of their products or services on their
account, and one of the likers of that
picture will receive this product for free.
21. 3.2.2.4 Viral Advertising
Turban names the term viral advertising in his book E-
Commerce, The Managerial
Perspective (Turban, 2012, p. 356). Many businesses use viral
advertising in social media. They are
placing a message, picture or video on their page to advertise
for their company. When the post is
relevant or experienced as humorous, it is often shared by many
users. This can result in a quickly
expanding reach for these companies. A fitting example for
viral advertising is the Dutch beer
company Heineken (with the biggest Facebook page in the
Netherlands with more than 12 million
likes). Nearly every day they post a picture with a funny text
that relates to their brand and
sometimes to recent events in the Netherlands. These pictures
often get shared by thousands of
people, and with that they are being spread amongst thousands
of networks.
3.2.2.5 Questions and Support
The last activity that will be looked at is questions and support.
With social media, companies
22. can communicate relatively quick and easy with their
customers. In 2010 the ash cloud from the
Eyjafjallajökull-volcano caused enormous chaos at airports. At
Schiphol, the Amsterdam airport,
many travelers could not depart to their destination. KLM, an
airline company, used social media
very efficient during this chaos. The traditional communication
channels (phone, information desks,
etc.) were overloaded because of the big amount of stranded
travelers. KLM adapted to this and
started monitoring Twitter and gave answers and support via
that channel. This was a solution that
seemed to work very effectively, and now KLM is monitoring
social media non-stop to support their
customers.
3.2.2.6 Other
If any activity is performed that was not listed above, there is a
field for other activities.
4 Results
4.1 Typology
First of all, a distinction has been made between the typology of
a company that was chosen.
23. Based on the four categories that were listed before in the
Theoretical Framework, companies were
classified as service or product based. From the 384 companies
that were studied, 76.6% (294) were
classified as service-based, while only 23.4% (90) companies
were classified as product-based.
With a confidence level of 95% and an error marge of 5%, we
can assume that the percentage of
service-based companies in the Netherlands is between 71.6%
and 81.6%. The percentage of
product-based companies in the Netherlands is therefore
between 18.4% and 28.4%.
4.2 Multi-channeling
Next to the typologies, the number of social media where
companies were active at was
looked into. Most companies (47%) only used one social
medium, 18% did not use any, 17.4% used
two, 8.6% used three, 3.6% used four and only 2.6% used five
social media.
What amount of Social Media does this company use?
24. Frequency Percent Valid Percent Cumulative Percent
Valid
0 69 18,0 18,0 18,0
1 191 49,7 49,7 67,7
2 67 17,4 17,4 85,2
3 33 8,6 8,6 93,8
4 14 3,6 3,6 97,4
5 10 2,6 2,6 100,0
Total 384 100,0 100,0
Figure 1. The amount of Social Media companies use
Google+ is the most used social medium by companies.
However, while gathering the data it
was found out that companies who were only having a Google+
page did not perform any activity on
there. The second most used social medium is Facebook with
26.4%. Twitter is used by 17.2%, other
social media by 12.5% and Youtube is only used by 6%.
Goal of this section was to find out whether companies from
the service or product
25. typologies are using more social media. As can be seen in
Figure 2, A two-tailed T-Test shows that
there is no significant difference (0.055 > 0.05) between the use
of social media and the typology of a
company. Therefore, we reject H2a and cannot state that
businesses from the product typology are
using more social media than businesses from the service
typology.
Figure 2. T-tests on Product vs. Service concerning Multi-
channeling, Activities and Other Factors
4.3 Activities
After studying multi-channeling, the number of activities
companies performed on social
media was examined.
How many different activities does this company perform on
Social Media?
Frequency Percent Valid Percent Cumulative Percent
Valid
26. 0 279 72,7 72,7 72,7
1 54 14,1 14,1 86,7
2 36 9,4 9,4 96,1
3 12 3,1 3,1 99,2
4 3 ,8 ,8 100,0
Total 384 100,0 100,0
Figure 3. How many activities companies perform on Social
Media
The majority of the companies (72.7%) did not perform
activities on social media. Only 14.1%
performed one activity, 9.4% performed two activities, 3.1%
performed 3 activities and finally 0.8%
performed 4 activities. As can be seen in figure 2, there is a
significant difference (0.003 < 0.05)
between number of activities performed on social media and the
typology of a company. Therefor
we accept H2b and can state, with a confidence level of 95%
and an error marge of 5%, that
businesses from the product typology are performing more
activities on social media than businesses
27. from the service typology.
4.4 Other Factors
Other factors that were not defined in the research question, but
were gathered as data,
were whether companies had a website and if they were one-
man businesses or not. It was found
out that exactly 2/3 of the companies studied owned a website,
and that 72.7% of the companies
were a one-man business.
After performing a T-test on both factors (see figure 2), it was
found out that there is no
significant difference (0.165 > 0.05) between the product and
service typology concerning one-man
businesses. This means that there is no reason to believe that a
one-man business occurs more in the
service or product typology.
When comparing the two typologies on owning a website, a
significant difference (0.031 >
0.05) between product and service is visible when looking at
companies that own a website, so it can
be stated (with a confidence level of 95% and an error marge of
5%) that companies from the
28. product typology are more often having a website.
As can be seen in figure 4, when not considering the typologies
of the companies studied, but
only if they were a one-man business or not, no significant
difference (0.196 > 0.05 & 0.751 > 0.05)
was found in their Multi-channeling and use of Social Media.
This means that there is no reason to
believe that one-man businesses are more or less active on
Social Media than more-man businesses.
Figure 4. One-man businesses T-test
4.5 The main hypothesis
Similarities and differences in multi-channeling and the use of
social media of companies
from the product and service typology are looked at in this
research. H2a has been rejected, but H2b
was accepted. There was a difference visible in multi-
channeling social media, but this difference was
not significant. Accepting H2b implies that there is reason to
believe that there is a difference in the
use of social media. According to the findings described above,
H1 can be accepted and it can be
29. stated that there is a difference in multi-channeling and the use
of social media when
comparing companies from the two different typologies.
5 Discussion
5.1 Social Media
As written before, the service industry covers approximately
75% of the employment and
Gross National Product in the Netherlands (Kwakman et al,
2010). This is consistent with the findings
in this study, where it was found out that 76.6% of the
companies were from the service typology.
In the data gathered it was spotted that there was a difference in
the multi-channeling of
social media between companies from the service and product
typology; the mean of social media
used by service based companies was 1.31 and the mean of
social media used by product based
companies was 1.6. However, an independent T-Test
showed(see figure 2) that the difference was
not significant (0.55 > 0.5). The standard deviation of product
based companies(σ = 1.3) was much
30. bigger than the standard deviation of service based companies(σ
= 1.1). Next to that, the sample of
product based companies was much smaller than the sample of
service based companies (294
service/90 product). This is an important limitation of this
research that has to be taken into account,
since with a sample that would have been 50/50 it could have
been possible to identify more
accurate patterns in how companies from the Service and
Product typology use multi-channeling for
Social Media.
An unexpected finding in this research was the low number of
activities performed by
companies on social media by both businesses from the service
and product typology. The average
number of activities performed on social media by product-
based companies was 0.74 and the
average number of activities performed by service-based
companies was only 0.34. Since many
researchers have stressed the importance and value of web 2.0
tools like social media, it was
assumed that the majority of the companies would have actively
been using them. Even though
31. there was a low number of activities, there was a significant
difference (0.003 > 0.05) between the
service and product typology.
Product based companies use more activities than service-based
companies on social media,
while social media are a perfect platform for any kind of
company to get known and get in touch with
their community. Since the service industry is so big in the
Netherlands, it would be very profitable
for many companies from that typology to become more active
on social media. Almost half of the
Dutch population is active at social media, so companies could
expand their reach very effectively by
using it.
An example of a service based company that could profit from
using social media is a local
barber shop. They are not having many customers and
advertisements in the local newspaper did not
result in an increase. By opening a Facebook page, the owners
can invite all their friends and their
current customers (by asking them when they visit the store) to
follow the barber shop. Now they
could start to work on expanding their reach in an effective
way. When creating an announcement
32. which states that every person who brings 30 likers to the page
will get a free haircut, many people
will be triggered to share their page with their friends. In this
way, the barber shop can expand its
reach rapidly and get in touch with many more (potential)
customers than when they only stick to
traditional ways of advertising like in a newspaper.
As mentioned before, much fewer companies were active at
social media than was expected
when starting this research. Andrioli (2010) mentions
deployment anxiety as reason for not using
Web 2.0 tools like social media, which means that companies
can be scared of applying it. This fright
can be caused by fear for online negativity about their brand or
company, because people feel the
need to share something online the most when they are
unsatisfied or angry about something
(Jadoenath, 2011).
Negativity can spread easily online, but also positive actions
can get a lot of attention. If
there happens to be negativity, the company that receives a lot
of criticism can try to engage with
33. this negativity and try to find out what they can do to satisfy
their customers better. A company has
to realize that this is very important, since without customers a
company can’t survive.
An example of a company that engaged with a lot of criticism
via social media is Domino’s
Pizza. Many people posted their opinion about Domino’s pizza
which often included that their pizza-
bottoms tasted like cardboard, that their tomato sauce tasted
like ketchup and that microwave
pizzas were much better. Domino’s Pizza got confronted with
these negative messages and they
decided to launch their campaign the Pizza Turnaround
(Domino’s, 2010). In a short documentary
they show why they decided to launch this campaign and how
they handled the negative reactions
on their product.
Several staff members and cooks are displayed and it can be
seen that they care a lot about
the opinion that people have from their pizza. Because of the
huge number of negative reactions on
their pizza, they decided to start all over and make a new recipe
for their pizza. After doing so, they
34. visited unsatisfied customers with their new pizzas, to show
how important the opinion of their
customers is for them. Thanks to this campaign, Dominos
turnover grew with 14%. This example
shows that even negativity on social media can be turned into
something positive. Social media are
part of many peoples life now and like Li & Bernoff (2010, p.
75) state: “You [companies] cannot
ignore this trend. You cannot sit this one out … You may go a
little bit slower or a little bit faster, but
you have to move forward”.
5.2 One-man businesses and websites
Kwakman et al (2010) showed that companies shrank in the
amount of employees, but the
amount of companies was growing rapidly. The result: many
one-man businesses, a finding that this
research can confirm. From all companies that were studied,
72.7% were one-man businesses. Small
differences were visible in the number of and activities
performed on social media between one-man
businesses or more-man businesses. These differences were not
significant however, so it is not
possible to say whether there is a difference when looking at all
35. the companies in the Netherlands.
Another unexpected finding while gathering the data was that
1/3 of the companies studied
did not own a website. Since there is such a great number of
people connected with the Internet in
the Netherlands, it was assumed that nearly every company is
having a website. Product-based
companies are more often having a website than service-based
companies, but (as can be seen in
figure 2) almost ¼ of the product-based companies are also
without a website. Having a website can
be of great value for companies (De Boer, 2012). People can
find you online and it is possible to give
information about a service or product in any way the company
desires; via text, images, sound or
video, which they can show in any style or design they want.
For both typologies a website can be of
great value, but since service-based companies are having a
website significantly less often than
product-based companies, we stress that especially business
from the service typology should take a
look at the advantages of a website.
36. 6 Conclusion and Recommendations
This research was intended to look into the differences and
similarities in multi-channeling
and the use of social media by companies from the service and
product typology in the Netherlands.
It was found out that many companies are not multi-channeling
and often not performing any
activity on social media. Product-based companies, however,
are performing more activities than
service-based companies. It might be that businesses from the
product typology are multi-channeling
more than businesses from the service typology, but the
difference found was not significant so this
is not proven with this research.
We recommend companies from both typologies to look more
into the possibilities that
social media bring, and use them in a way that fits to their
business. Social media can be used in so
many ways, that nearly each company can have profit by using
it. Going viral, giving support and
organizing contests are examples of activities that can be
performed by basically every business and
that can easily help reaching new customers in an effective way.
37. Especially companies from the
service typology seem to be able to win a lot by spending more
attention on social media, since they
significantly use it less than companies from the product
typology.
It would be interesting if this same research would be done
again in one or two years, to see
whether there is a change in the way companies use social
media. According to the research of CIO
insight (2012), companies are planning to use it more in the
future, so if this research would be
repeated it can be found out if this is indeed what happened.
Future work could also include a more
in-depth research to find out why so few companies are active at
social media. Finding out why social
media is not used that actively could lead to interesting aspects
of this phenomenon that researchers
did not take into account yet. A case study at a few companies
that are not actively using social
media yet could be interesting as well. Finding out accurate
results of active social media use at
companies from both typologies can give an insight that could
trigger more companies to use it.
In conclusion, this paper pointed out a lack of multi-channeling
38. and activity on social media
for the greater part of the studied organizations. Perhaps the
exemplary questions which began this
paper should be revised and ask “Why don’t I like you on
Facebook?” and “Why am I not following
you on Twitter?”.
8 References
Evolution of the World Wide Wem:
from Web 1.0 to Web 4.0, 3(1), 1–10.
Technologies, 67–79.
Marktonderzoek. Pearson Education
in 2013. Available at:
http://www.cioinsight.com/it-news-trends/slideshows/10-trends-
sure-to-impact-cios-in-
2013/ Posted 11-15-2012, Retrieved 01-06-2013.
39. Knowing what we know. Supporting
knowledge creation and sharing in social networks.
Organizational Dynamics, 30(2), 100–120
Boer.
Resources and Networks.
www.darcyd.com/fragmented_future.pdf
no’s Pizza (2009). The Pizza Turnaround. Available at
http://www.youtube.com/watch?v=AH5R56jILag
Identifying Neo-Schumpeterian
Innovation in Service Firms: A Conceptual Essay With a Novel
Classification, Economics of
Innovation and New Technology 16(7): 541-558.
and Wealth, Volume 23, Issue 4,
315-338
the Scene Volume 1, 2007.
40. unite! The challenges and
opportunities of Social Media. Business Horizons, 53(1), 59–68.
I. P., & Silvestre,
B. S. (2011). Social media? Get
serious! Understanding the functional building blocks of social
media. Business Horizons,
54(3), 241–251.
Journal of Marketing. 1977;41(1):71-
76.
Principles of Marketing (5th edition).
Pearson Education
Tellegen, J. W. (2010).
Reinventing Service Innovation.
International Journal of Information
Management To be or not to be in social media : How brand
loyalty is affected by social
41. media ?, 33, 76–82.
in a
World Transformed by Social
Technologies
journal of the American Association
of Occupational Health Nurses, 58(10), 415–7.
ble
at
http://www.marketingfacts.nl/statistieken/algemeen/ Accessed
at 11-06-2013
plaats van bereiken ”, 1–26.
Business Models for the Next
Generation of Software Available at:
http://oreilly.com/web2/archive/what-is-web-20.html
Clicks”: The Impact of Product Returns
on the Strategies of Multichannel Retailers. Marketing Science,
30(1), 42–60.
Willingness to participate. Business
42. Horizons, 54(3), 219–229.
cloud computing and Web 2.0:
Experiencing the power of disruptive innovations. International
Journal of Information
Management, 33(1), 160–165.
and social networks perspective
(7th edition). Pearson Education
W. (2009). Online purchase
intentions: A multi-channel store
image perspective. Information & Management, 46(2), 77–82.
Managing the social media mix.
Business Horizons, 54(3), 275–282.
ilson, H. J., Guinan, P. J., Parise, S., & Weinbeg, B. D.
(2011). What’s Your Social Media
Strategy ?, (August), 23–26.
65. 384 2 1 1 2 0 1 0 1 0 1 0 0 0 1 0 0
ATTACHMENT II: Variables
ATTACHMENT III: Result Tables Drawn From The Gathered
Data
Frequency tables Social Media:
Which Typology classifies this company?
Frequency Percent Valid Percent Cumulative Percent
Valid
Product 90 23,4 23,4 23,4
Service 294 76,6 76,6 100,0
Total 384 100,0 100,0
Figure 1. The amount of Social Media companies use
How many Social Media is this company using?
66. Frequency Percent Valid Percent Cumulative Percent
Valid
0 69 18,0 18,0 18,0
1 191 49,7 49,7 67,7
2 67 17,4 17,4 85,2
3 33 8,6 8,6 93,8
4 14 3,6 3,6 97,4
5 10 2,6 2,6 100,0
Total 384 100,0 100,0
Does this company use Twitter?
Frequency Percent Valid Percent Cumulative Percent
Valid
No 318 82,8 82,8 82,8
Yes 66 17,2 17,2 100,0
Total 384 100,0 100,0
Does this company use Facebook?
67. Frequency Percent Valid Percent Cumulative Percent
Valid
No 278 72,4 72,4 72,4
Yes 106 27,6 27,6 100,0
Total 384 100,0 100,0
Does this company use Youtube?
Frequency Percent Valid Percent Cumulative Percent
Valid
No 361 94,0 94,0 94,0
Yes 23 6,0 6,0 100,0
Total 384 100,0 100,0
Does this company use Google+?
Frequency Percent Valid Percent Cumulative Percent
Valid
No 95 24,7 24,7 24,7
Yes 289 75,3 75,3 100,0
68. Total 384 100,0 100,0
Does this company use other Social Media?
Frequency Percent Valid Percent Cumulative Percent
Valid
No 336 87,5 87,5 87,5
Yes 48 12,5 12,5 100,0
Total 384 100,0 100,0
Figure 2: Product vs. Service in the amount of Social Media and
Activities
Group Statistics
Which Typology
classifies this
company? N Mean
Std.
Deviation
Std.
Error
Mean
How
69. many
Social
Media?
Product 90 1,60 1,270 ,134
Service 294 1,31 1,092 ,064
How
many
activities?
Product 90 ,74 1,117 ,118
Service 294 ,36 ,725 ,042
one-man
business?
Product 90 ,67 ,474 ,050
Service 294 ,74 ,437 ,025
website? Product 90 ,76 ,432 ,046
Service 294 ,64 ,481 ,028
Independent Samples Test
Levene's Test
for Equality of
Variances t-test for Equality of Means
F Sig. t df
72. Frequency Tables activities:
Figure 3. How many activities companies perform on Social
Media
How many different activities does this company perform on
Social Media?
Frequency Percent Valid Percent Cumulative Percent
Valid
0 279 72,7 72,7 72,7
1 54 14,1 14,1 86,7
2 36 9,4 9,4 96,1
3 12 3,1 3,1 99,2
4 3 ,8 ,8 100,0
Total 384 100,0 100,0
Product reviews
Frequency Percent Valid Percent Cumulative Percent
Valid No 384 100,0 100,0 100,0
Competitions
73. Frequency Percent Valid Percent Cumulative Percent
Valid
No 380 99,0 99,0 99,0
Yes 4 1,0 1,0 100,0
Total 384 100,0 100,0
Discount/Free item
Frequency Percent Valid Percent Cumulative Percent
Valid
No 374 97,4 97,4 97,4
Yes 10 2,6 2,6 100,0
Total 384 100,0 100,0
Viral advertising
Frequency Percent Valid Percent Cumulative Percent
Valid
No 296 77,1 77,1 77,1
Yes 88 22,9 22,9 100,0
74. Total 384 100,0 100,0
Questions/Support
Frequency Percent Valid Percent Cumulative Percent
Valid
No 342 89,1 89,1 89,1
Yes 42 10,9 10,9 100,0
Total 384 100,0 100,0
Other activities?
Frequency Percent Valid Percent Cumulative Percent
Valid
No 349 90,9 90,9 90,9
Yes 35 9,1 9,1 100,0
Total 384 100,0 100,0
Frequency tables other factors
75. Is this company a one-man business?
Frequency Percent Valid Percent Cumulative
Percent
Valid
No 105 27,3 27,3 27,3
Yes 279 72,7 72,7 100,0
Total 384 100,0 100,0
Does this company own a website?
Frequency Percent Valid Percent Cumulative
Percent
Valid
No 128 33,3 33,3 33,3
Yes 256 66,7 66,7 100,0
Total 384 100,0 100,0
76. Figure 4. Oneman business T-Test
Group Statistics
Is this company a
one-man business? N Mean
Std.
Deviation
Std.
Error
Mean
How
many
Social
Media?
No 105 1,50 1,161 ,113
77. Yes 279 1,33 1,132 ,068
How
many
activities?
No 105 ,48 ,889 ,087
Yes 279 ,44 ,833 ,050
Independent Samples Test
Levene's Test for
Equality of
Variances t-test for Equality of Means
F Sig. t df
Sig. (2-
tailed)
Mean
Difference
Std. Error
Difference
95% Confidence
Interval of the
Difference
78. Lower Upper
How
many
Social
Media?
E.v.
assumed
,405 ,525 1,314 382 ,190 ,171 ,130 -,085 ,428
E.v.not
assumed
1,298 182,880 ,196 ,171 ,132 -,089 ,432
How
many
activities?
E.v.
assumed
,809 ,369 ,327 382 ,744 ,032 ,097 -,159 ,223
E.v. not
assumed
,317 176,857 ,751 ,032 ,100 -,166 ,229
Sheet1Com. Nr.TypeOne Man BusinessWebSM.