Yasmin McKeag, profile picture
Uploaded byYasmin McKeag
372 views

Yasmin Love McKeag - Dissertation

This document is a dissertation submitted by Yasmin Love McKeag to Glasgow Caledonian University in partial fulfillment of a BA in Business. The dissertation explores the rise of social media and its impact on brand communication, specifically looking at Tesco Bank. It acknowledges that while social media allows for new forms of interaction between brands and consumers, its use for marketing purposes has been met with controversy. The dissertation aims to investigate social media's influence from both organizational and consumer perspectives at Tesco Bank to evaluate if its increased use is viewed positively or negatively.

Embed presentation

Download to read offline
1 / 123
2 / 123
3 / 123
4 / 123
5 / 123
6 / 123
7 / 123
8 / 123
9 / 123
10 / 123
11 / 123
12 / 123
13 / 123
14 / 123
15 / 123
16 / 123
17 / 123
18 / 123
19 / 123
20 / 123
21 / 123
22 / 123
23 / 123
24 / 123
25 / 123
26 / 123
27 / 123
28 / 123
29 / 123
30 / 123
31 / 123
32 / 123
33 / 123
34 / 123
35 / 123
36 / 123
37 / 123
38 / 123
39 / 123
40 / 123
41 / 123
42 / 123
43 / 123
44 / 123
45 / 123
46 / 123
47 / 123
48 / 123
49 / 123
50 / 123
51 / 123
52 / 123
53 / 123
54 / 123
55 / 123
56 / 123
57 / 123
58 / 123
59 / 123
60 / 123
61 / 123
62 / 123
63 / 123
64 / 123
65 / 123
66 / 123
67 / 123
68 / 123
69 / 123
70 / 123
71 / 123
72 / 123
73 / 123
74 / 123
75 / 123
76 / 123
77 / 123
78 / 123
79 / 123
80 / 123
81 / 123
82 / 123
83 / 123
84 / 123
85 / 123
86 / 123
87 / 123
88 / 123
89 / 123
90 / 123
91 / 123
92 / 123
93 / 123
94 / 123
95 / 123
96 / 123
97 / 123
98 / 123
99 / 123
100 / 123
101 / 123
102 / 123
103 / 123
104 / 123
105 / 123
106 / 123
107 / 123
108 / 123
109 / 123
110 / 123
111 / 123
112 / 123
113 / 123
114 / 123
115 / 123
116 / 123
117 / 123
118 / 123
119 / 123
120 / 123
121 / 123
122 / 123
123 / 123
‘Exploring the rise of the social media phenomenon and investigating its role and impact in developing and nurturing brand communication. A study of Tesco Bank’ Yasmin Love McKeag S1017487 Submitted in part fulfillment of the requirements for BA (Hons) Business GLASGOW CALEDONIAN UNIVERSITY 10th of APRIL 2014
2 ACKNOWLEDGEMENTS I wish to express gratitude and thanks to all of those who have assisted and advised during this project, with particular mention of: My dissertation supervisor, Ronnie Ballantyne, thank you for keeping me as calm as you have throughout this entire process - your advice and guidance has been instrumental in helping me succeed. Both marketing managers at Tesco Bank, without whom the study would not have been possible, thank you for taking time out of your schedules and keeping in contact with me throughout the entire study. My friends, family and boyfriend, thank you for listening to me obsess over this dissertation for the last few months; I appreciate all your love and support. This has not been submitted elsewhere in the fulfilment of the requirements of this or any other award, it is my own work and following normal academic conventions I have made due acknowledgement to the work of others. Word Count: 11,477 Signature_____________________________________________ Date ____________
3 ABSTRACT Aim: To explore the role of social media and its impact in developing and nurturing brand communication, specifically within Tesco Bank. The objectives are to identify key factors in the rise of social media (in particular Facebook, Twitter and LinkedIn), Explore the influence social media has within brand communication from an organisational and consumer perspective and to evaluate whether or not it has been viewed as a positive or negative change from both an organisational and consumer perspective. Method: This study used a mixed method approach consisting of 2 face-to-face interviews with employees at Tesco Bank and 100 web-based questionnaires distributed to consumers via email, in order to gain both an organisational and consumer perspective. Findings: The study showed that the impact of social media on brand communication has been significant as many consumers as well as organisations are actively using these platforms to communicate. However in Tesco Bank’s case due to the nature of their business, social media has presented them with obstacles, in regards to regulation and data protection policies. It was found that from a consumer perspective that social media as a method of brand communication was very positively accepted, however consumers were not too aware of it being used by the banking industry. Recommendations: Further research from a consumer perspective would be essential as there was very little empirical research available. As this study only took into consideration three social media platforms, a further look outwith ‘social networking sites’ would be recommended, and to study multiple industries in order to compare the impact social media has had on their brand communication.
4 CONTENTS Acknowledgments Abstract Contents List of Figures Chapter One: Introduction Introduction P8-10 Aims and Objectives P10-11 Chapter Two: Literature Review Introduction Background Brand Communication Influences From an Organisational Perspective Influences From a Consumer Perspective Conclusion Chapter Three: Methodology Research Paradigm and Approach Research Design Phase One - Qualitative data collection Phase Two - Quantitative data Limitations Ethical Standards Chapter Four: Results and Analysis Analysis Approach Results and Analysis of Interviews and Questionnaires Combined Explore the influence SM has within Brand Communication Evaluate whether or not the increase of SM is viewed as a positive change
5 Conclusion Chapter Five: Conclusion and Recommendations Chapter Six: References In Text Bibliography Chapter Seven: Appendices Appendix A - Participant Information Sheet P76-77 Appendix B - Consent Forms P78-79 Appendix C - Interview Prompts P80-83 Appendix D - Interview Transcripts P84-101 Appendix E - Key Themes from Interviews P102 Appendix F - Transcript Summaries (Colour Coded) P102-108 Appendix G - Questionnaire Cover Letter P109 Appendix H - Screen Shots of Questionnaire P110 Appendix I - Additional Answers from Questionnaire P114-120 Appendix J - Example of Tesco Bank’s Weekly Social Media Report P121
6 LIST OF FIGURES Figure One: Facebook “Like” Icon P14 Figure Two: Twitter text box example P15 Figure Three: Facebook, Twitter and LinkedIn Promotional Icon examples P16 Figure Four: Bar Chart taken from Harvard Business Review (2010) P16 Figure Five: ‘Four P’s Example P19 Figure Six: Bar Chart taken from Keynote Report (2012) P22 Figure Seven: Pie Chart taken from Emarketer Report (2012) P23 Figure Eight: Bar Chart taken from Emarketer Report (2012) P24 Figure Nine: Pie Chart taken from Social Media Market industry Report (2013) P25 Figure Ten: Example of ‘Starbucks’ failed social media campaign P27 Figure Eleven: Table displaying key themes gathered from Tesco Bank Interviews P41 Figure Twelve: ‘What social media platforms are you active on?’ (Pie Chart) P42 Figure Thirteen: ‘Do you follow or like any brands via your social media platforms?’ (Pie Chart) P44 Figure Fourteen: ‘Do you feel banks should be present on social media?’ (Pie Chart) P45
7 Figure Fifteen: ‘Would you be less likely to buy from a brand if they were not seen to be actively responding to customers enquires/concerns via social media?’ (Pie Chart) P46 Figure Sixteen: ‘Have you ever used social media to communicate with your bank?’ (Pie Chart) P48 Figure Seventeen: ‘What do you expect from companies who actively promote their brand via social media?’ (Bar Chart) P50 Figure Eighteen: ‘In general how do you feel about brands using social media as a method of communication?’ (Bar Chart) P54 Figure Nineteen: Do you feel as a consumer, that social media gives you more of a voice, to highlight positive and negative experiences with brands you have purchased with?’ (Bar Chart) P56 Figure Twenty: ‘How often do you use social media?’ (Pie Chart) P58 Figure Twenty-one: ‘If your bank wished to target you with relevant offers and content via social media, would you give your permission for your information to be used in this way? ‘ (Pie Chart) P60
8 CHAPTER 1: INTRODUCTION 1.0 Introduction This research will focus on exploring the rise of the social media phenomenon and investigating its role and impact in developing and nurturing brand communication. Creating a reputable and recognisable brand has been a concept in which organisations have been actively aiming to achieve for decades, as it adds value to the organisation overall (Keller & Lehmann, 2004). The introduction of social media as a method of brand communication has caused controversy and debates from organisations as well as academics. Surprisingly there has been reluctance for the acceptance of new marketing methods, despite evidence that traditional methods of marketing may not necessarily have the highest perceived value by consumers (Dahlén et al, 2009). In today’s business world, it is very common to see organisations creating social media platforms, for example, “Facebook”, “Twitter” and “LinkedIn” accounts in order to stay relevant amongst their competitors and reinforce bonds with their customers (Mitic & Kapoulous, 2012). Due to the multitude of industries that social media has managed to influence, as a way to focus the research more effectively, the response to social media and the perception of it as a brand communication tool will be looked at more specifically from the perspective of retail bank, ‘Tesco Bank’. Exploring social media and its impact on developing and nurturing brand communication, through the financial services presents the possibility of uncovering interesting insights. This is because, currently the
9 banking industry is viewed as delicate and vulnerable due to the economic climate, coupled with this there are extensive regulatory and legal policies in place in order to protect consumers, which in turn present their own obstacles. (Chikandiwa et al, 2013). However even with potentially problematic obstacles such as these, there is still a level of willingness for organisations to integrate social media into their business plan. Bernhardt et al (2012, p132) explains that the ‘interactive nature’ and ‘place-based features’ of social media channels, is allowing organisations to interact with their consumers through conversations and enabling them to engage with their audiences like never before. With consumers now looking to build relationships with the brands in which they purchase from, marketers see a shift in paradigm, and the move away from traditional transactional marketing (Ajio, 1996). With that being said, many businesses have rushed into the social media race without first having a proper strategic plan in place, which would outline their approach of its use within brand communication (Harvard Business Review, 2010). From this they have unfortunately experienced the negative repercussions of their careless actions. It seems to have been forgotten that even with marketer’s attempts to control the social web, its soul purpose was to connect individuals and create a collective conversation, not to sell branded products. (Schultz & Peltier, 2013) Although there seem to be many conflicting views on the concept of social media from an organisational perspective and the perceived value of it as a marketing tool, there is little to no empirical evidence of this from a consumer perspective. Bruhn (2012) explains that due to the voice that social media now gives consumers; organisations themselves are now not the soul source of brand
10 communication. Dye (2000) outlines that word of mouth communications is one of the most effective forms of marketing, and with that being said, the introduction of social media has now been revolutionised. This is due to the possible impact consumer’s opinions and views expressed on their social media platforms can have on the overall perception of brands. By gathering an understanding of the significance social media has from a consumer perspective it would effectively allow organisations to utilise social media in a more creative and operative way, thus benefiting consumers by giving them a more personal and inclusive buying experience. 1.1 Research Aim and Objectives The primary aim of this undergraduate research is to explore social media’s role in developing and nurturing brand communication, specifically Tesco Bank. By gathering information about this phenomenon from an organisational perspective through interviews, and consumer perspectives through surveys, it will allow for an inclusive look into the way in which social media is generally perceived within brand communication. In order to achieve this effectively, three main objectives set a pathway, which the dissertation will follow:  Identify key factors in the rise of Social Media (In particular: Facebook, Twitter and LinkedIn)  Explore the influence social media has within brand communications, from both a consumer and organisational perspective  Evaluate whether or not the increase of social media is viewed as a positive change from both consumers and organisations
11 CHAPTER 2: LITERATURE REVIEW 2.1 Introduction In the past, organisations have taken to traditional forms of media such as Television and Radio, in order to communicate their brand to consumers. However consumers are now using social media not only to gather information about potential products and services they may buy, but also to communicate with the company that is selling to them. Furthermore they use social media to gain insight from customers who have already purchased with the company before. (Garretson, 2008) This shift in paradigm has resulted in companies having to learn to talk directly to their customers, instead of the traditional method of talking at them. (Mangold & Faulds, 2009) The purpose of this literature review is to explore the rise of the social media phenomenon by analysing its history and development and discovering how this has impacted brand communication. Social Media has been in existence since the mid 1990’s, with platforms such as ‘sixdegrees.com’ allowing users to create online profiles, and connect and communicate with other like-minded users. (Keynote, 2013) Social Media is multi faceted, in the fact that multiple platforms exist in the forms of social networking sites, blogs, forums etc. Over the last decade or so, with the increased popularity of social networking sites, companies are beginning to
12 realise the potential these platforms hold in relation to brand communication. By having an active presence on these sites, companies are now utilising social media as an effective way of communicating with their customers, as well as gathering information that can be used not only to improve their products and services, but the overall perception of their brand. (Laroche et al, 2012) As Social Media as a brand communication tool is a fairly new topic of research, much of the discussion is focused on ‘social networking’ sites. (Correa et al, 2010) Due to a lack of empirical research within the topic, and time restrictions to carry out this research, three main platforms have been selected, Facebook, Twitter and LinkedIn, in order to focus the literature review more effectively. Social Media has completely revolutionised the concept of word-of-mouth communications, as Gillian (2007) explains, “Conventional marketing wisdom has long held that a dissatisfied customer tells ten people. But that is out of date. In the new age of social media, he or she has the tools to tell 10 million”. (P.7) Social networking sites, now allow users to share their views and opinions, with the whole world, as a result of this companies are now at the hands of the consumer, which emphasises how the shift in paradigm is affecting the way companies promote and manage their brand.
13 2.2 Background To understand the concept of what Social Media is, it is essential that two main fundamentals be explained, these are: ‘Web 2.0’ and ‘User-generated content’ (UGC). Web 2.0, which gained popularity in 2004 is a lead on from Web 1.0 that initially allowed users to simply view webpages. Web 2.0 however “ is a platform in which software and content are not produced and published by individual companies and people, but are produced and developed by different participants in a continuous and collaborative manner.”(Laroche et al, 2012,p.1756) UGC, which became more apparent in 2005, “comes from regular people who voluntarily contribute data, information or media that then appears before others in a useful or entertaining way, usually on the web”. (Krumm, 2008, p.10) Although it has been in existence prior to the creation of Web 2.0, there are a number of driving forces that have brought it to the forefront of research within this topic. For example, technological advancements such as high-speed broadband, economic drivers such as the increased availability of tools to create UGC, and social drivers, like the new generation of ‘digital natives’ who have a substantial amount of knowledge in regards to technology. (Kaplan & Haeinlein, 2010) These combined factors have allowed users to share thoughts and ideas publically at the touch of a button. Social networks are ‘an online place where a user can create a profile and build a personal network that connects him or her to other users.’ (Lenhart & Madden,
14 2006 p.1) They began to increase in popularity in 2004 with the creation of ‘Facebook’. It is now possibly the most popular social networking site in existence with 874 million active monthly users. (Official Facebook Website, 2013) The most distinguishing feature of the site, their popular ‘like’ button was introduced in 2009. Figure 1 Source: Official Facebook Website (2014) This effectively allows users to publically support content that is uploaded to the site by allowing them to ‘like’ the post whether it be an article, blog post, photograph etc. ‘Twitter’, a micro blogging website was created in 2007 is now the second most popular social networking site. Currently companies who are choosing to engage in SM usually have a strong presence on both Facebook and Twitter. At the moment, there are 230+ million monthly active users, with over 500 million posts known as ‘tweets’ being sent per day. (Twitter Official Website, 2013) The most distinguishing feature of Twitter is the fact that posts are limited to 140 characters, rather than Facebook, which is limited to 3000 characters.
15 Figure Two Source: Official Twitter Website (2013) This means that people using twitter have a lot less word count to get their point across, which from its popularity would seem to appeal to many people. In 2003, ‘LinkedIn’ was born. As it stands now, it is the largest professional networking site in the world, with over 259 million active users across 200 countries. (LinkedIn Official Website, 2013) It allows both established professionals and students to connect with each other, and by doing so opens up a new gateway for employment. Due to the high volume of users, many companies are now displaying all three icons for these social media platforms, through adverts and packaging, to encourage the customer to connect with them on a more personal level.
16 Figure Three Source: http://www.webexpand.co.uk/social-media.htm (2013) Harvard conducted a study (See figure four) that showed that 71% of businesses had adopted social media as communication tool (Harvard Business Review, 2010). It is clear to see the potential these social networking sites have in regards to the amount of people that can be reached, and the possibilities in regards to brand communication through these sites would appear to be positive. Figure Four Source: Harvard Business Review (2010)
17 2.3 Brand Communication To understand the role social media is playing within brand communication in present day, it is essential to develop an understanding in the history of brand communication. In the past traditional marketing adopted a ‘tell and sell’ model, in which consumers were talked at, persuaded and reminded of what they should be purchasing. However there is now a shift in paradigm as consumers are developing more of their own voice and have more choice within the market (Grönroos, 1997). From this we now see that consumers are now being seduced rather than persuaded to purchase branded products. Companies now have to concentrate not only on making a profit, but also on developing relationships with consumers, in order to satisfy their needs effectively (Kotler & Armstrong, 2010). Branding has become a top priority for organisations over the past decade, due to ‘the growing realisation that brands are one of the most valuable intangible assets that firms have’ (Keller & Lehmann, 2004). Brand communication has become an important factor in relaying the brand image to a consumer via various media outlets, in order to entice them to buy from said brand, rather than their competitors. The Handbook of Marketing (2002, p.153) in which Keller explains ‘brand equity’, in conjunction with studies undertake by Akaer (1991), defines it by four categories of brand assets. These are brand awareness,
18 perceived quality, brand associations and brand loyalty. Keller (1993 p.2) explains further that ‘consumer-based brand equity can be defined as ‘the differential effect of brand knowledge on consumer response to the marketing of the brand’. All of these aspects are important to building a successful brand, and should be considered in regards to communicating the brand to consumers effectively. With the increase of globalisation, companies now find themselves being faced with the issue of competing on a global as well as local scale. (Levitt, 1983) As competition is now becoming so fierce it is essential that brands set themselves apart from each other, and establish a unique brand personality. By creating a brand personality consumers find the brand more relatable and therefore can connect on a more personal level. (Akaer, 1997) Due to the increased focus on branding within present day, ‘brand loyalty’ has become another focus in which organisations strive to achieve. By retaining existing customers it requires less marketing resources that it would to attract new ones, so by creating brand advocacy, it benefits the firms in multiple ways (Knox & Walker, 2010). Along with this comes the introduction of: Relationship marketing, which can be referred to as the changing market paradigm. (Ajio, 1996) Companies are now faced with the challenge of developing a relationship with their consumers, in order to remain competitive within the present day’s saturated market. Weitz and Jap (1995, p.5) explains that “ The growing interest in relationship marketing suggests a shift in the nature of general marketplace transactions from discrete to relational exchanges - from exchanges between parties with no
19 past history and no future to exchanges between parties who have an exchange history and plans for future interactions.” It is evident to see that this marketing approach differs from the traditional method of transactional marketing, which is outl ine d in mo dels suc h as the Four P’s (Nickel & Woods, 1997). Figure Five Source: MBA Lectures Website (2013)
20 The Four P’s takes a more product-orientated route whereas relationship marketing takes a more customer-orientated route (Grönroos, 1997). Although viewed as a positive alternative by many due to the fact that it extends boundaries put in place by transactional marketing, there are some scholars who disagree with the idea of relationship marketing. Petrof (1997) believes that the concept of relationship marketing has only created further confusion rather than clarify. This is agreeable to an extent, as relationship marketing may not be necessary for all business transactions, and may over complicate simple transactions by trying to build relationships that are not essential. Relationship marketing may not have universal application and because of this, organisations need to determine whether the potential long term benefits outweigh the slightly higher costs incurred to that of transactional marketing (Fuan & Nichollis, 2000). The key aspect to the new marketing paradigm of relationship marketing, is communicating with customers. It is essential that organisations recognise the need for creating a brand dialogue in which customers can become involved, rather than a brand monologue. (Mangold & Faulds, 2009) From this, brand involvement and loyalty can develop which hopefully would eventually lead to the creation of strong, positively charged relationships. (Anderson, 2005) Brand communities, especially since the creation of the World Wide Web, have now become prominent parts in the creation of brand citizenship and this continuous idea of connecting with consumers on a more personal level. (Muniz & Schau, 2002)
21 2.4 Influences of Social Media (Organisational Perspective) Due to social media being a fairly new phenomenon, companies are still attempting to figure out if it is here to stay, or if over time it will lose its relevance within the business environment. When the Internet was first created, it was simply another place for marketers to advertise and for consumers to see their products. However with the increased popularity of social networking sites such as Facebook, Twitter and LinkedIn, organisations began to realise that consumers were taking the initiative and marketing between themselves (Strategic Direction, 2012). Companies are now beginning to realise the importance of having a presence within the world of social media, so much so that they are now recruiting employees specifically to manage this. For example, the New York Times hired their first Social Media manager in 2009 (Nolan, 2009). With over 10 million followers on Twitter, it is understandable why they felt the need to assign someone to manage brand communication through this media channel (New York Times Official Twitter, 2013). The implications that social media can have on their brand are becoming more apparent, and the realisation that social media cannot be ignored, more obvious. In a study conducted by advisory firm Grant Thorton they found that 71% of companies felt that social media posed a risk (Amy Gesenhues, 2013). Social media is being integrated into the business model more frequently within businesses marketing strategy as in 2011 a study conducted on 400 senior marketing managers (see figure six) across the UK and US, found that 69% were using Facebook, 57% were using Twitter and 48% were using LinkedIn. (Keynote, 2012,p.50) These
22 highlight how wide spread the relevance of social media is within today’s current business world. Figure Six Source: Social Media Marketing, Keynote Report (2012) As previously discussed communicating with consumers is a key part of creating a reputable brand, and one way to do this is through brand communities. With social media, online brand based communities are now flourishing, as users can now connect, share and promote from the comfort of their own homes. Relating back to relationship marketing, companies create these communities in order to develop meaningful relationships with customers, and are beginning to do so through social media networking outlets (De Vries et al, 2012). A great example of utilising social media to strength relationships with customers would be Royal Dutch Airline, ‘KLM’. In April 2010, Icelandic volcano, Eyjafjallajökull erupted causing airline flights to come to a stand still for a period of 6 days. Throughout
23 this period, their call centres were overloaded with the influx of customer service calls, which posed a threat to the reputation of their efficient customer support. Creatively however, they turned to social media and managed to respond to customers and provide regular updates via these platforms. They received a lot of public praise for their innovation and following this, the CEO Peter Hartman, announced they would invest heavily in developing an on-going social media strategy (Socialbakers Report, 2014). This shows the positive influence that can emerge from social media, if used correctly and efficiently. Leading on from this, it is evident that simply being present on these sites is not enough for the average consumer. In a study conducted by Emarketer, it found that 49.5% of consumers would be less likely to make a purchase with a brand that were not actively contributing and communicating effectively through their social media pages (Emarketer, 2012). Figure Seven
24 Source: Emarketer Report (2012) This doesn’t mean that companies need to reply to every negative comment, as brand advocates who are loyal to the brand would hopefully begin to do that for them. However for genuine questions and concerns, 68.3% of consumers found it either very important or important, that this be a focus from the organisations perspective (Emarketer, 2012). Figure Eight Source: Emarketer Report (2012) The evidence available however does not fully justify the use of social media as a brand communication tool and as a result of this; companies are showing an unwillingness to part with their marketing budgets. A degree of uncertainty
25 exists in regards to allocating effort and large amounts of their budget towards social media spending. The reason being, there is a lack of proof in regards to return of investment (ROI) and a limited understanding between the various types of social media (Weinberg & Pehlivan, 2011). Social media marketing ‘often requires more qualitative measurement rather than quantitative metrics that are more familiar to online marketers’ (Fisher, 2009). In a report by Michael A. Steizner (2013), marketers were asked how much they were able to measure the return of investment on their social media activities, and only 26% agreed they were able to do so. Figure Nine Source: Social Media Marketing Industry Report (2013) This may explain some of the reluctance from a business perspective to invest large amounts of capital into social media marketing. However, although further
26 studies into the ROI in relation to social media marketing is necessary, it would be impractical for organisations to overlook the point that traditional mass media outlets are now being combined with social media in order to connect with their consumers, on a more personal and communicative level (Scott, 2010). Marketers appear to be in the middle of the fence in regards to fully committing themselves to the opportunities of social media, possibly due to threat of the unknown. For that reason some still cling onto older, out-dated models of marketing until more research can be presented. 2.5 Influences of Social Media (Consumer Perspective) In order to fully assess the impact of social media on brand communication, it is essential to review the implications from a consumer perspective. Consumers are now becoming more innovative, and have more power than ever before through social media and technology advancements. Word of Mouth (WOM) communication is ‘an important marketplace phenomenon by which consumers receive information relating to organisations and their offerings.’ (Laczniak et al, 2001) This type of communication is important as it usually comes from peer groups, and it has been proven that consumers are more likely to trust this type of information rather than a company affiliated source (Feick & Price, 1987). It has been around since the beginning of marketing and has been considered the most effective form of marketing (Dye, 2000). Erik Qualman (2013) explains that before SM, word of
27 mouth communication, was rather slow spread and could be ‘diluted’ overtime. Consumers now have the ability to communicate their thoughts and feelings about a particular brand, effortlessly. Thus cometh the creation of Electronic Word of Mouth (eWOM), as it allows consumers to communicate with a large volume of individuals, anonymously if they so choose it and is available for an infinite period of time (Henning-Thurau et al, 2004). One example of the power the consumer has in relation to their voice being much louder with the creation of social media campaigns is coffee brand ‘Starbucks’. Although they have a positive reputation on social media due to many successful campaigns and a willingness to engage with their consumers, they have also fallen target to consumers voicing their negative opinions about the brand. One Christmas as a PR stunt, they displayed twitter messages that included their hashtag ‘spreadthecheer’ on a large screen next to an ice rink at London’s natural history museum. However they forgot to monitor what was actually being posted, which can be seen below, allowed consumers to voice their opinions about their tax scandals (David Moth, 2014)
28 Figure Ten Source: https://econsultancy.com/blog/64328-eight-awesome-social-campaigns-from-starbucks Along with eWOM, consumer’s willingness to accept new technology has also been a contributing factor in the phenomenon of social media. Davis (1989) explains that there are two features that influence this; perceived usefulness & perceived ease-of-use. For consumers the usefulness of social media is in the ease in which they can communicate with not only their peers but directly with companies. As technology is advancing at such a rapid speed the perceived ease- of-use is obviously something that needs to be further investigated, due to the generational differences. Bruhn et al (2012,p771) explains, “social media offers an opportunity for consumers to talk to hundreds or even thousands of other consumers around the world, companies are no longer the sole source of brand communication”. With the increased use of smartphones, and mobile data plans, consumers are now able to communicate their thoughts and feelings via social networks whilst on
29 the go. In a study conducted by Mintel, they found that 40% of users accessed social networks out with their home at least once a day. (Mintel Oxygen, 2013) Furthermore it has also been found that 54% of consumers used social media to ‘like’ or ‘follow’ a brand. (Mintel Oxygen, 2013) Social Media reemphasises the shift in paradigm and the fact that consumers are now searching for alternatives and stepping outside their comfort zone. Even more so they now have more choice than ever and thus more control than ever before. Further research is essential in order to fully understand the consumer perspective on the increased use of social media as a brand communication tool, as there is a limited amount of empirical evidence available from their viewpoint 2.6 Conclusion As the phenomenon of social media is fairly new, there is limited research focused solely on the way it has effected brand communication. This literature review has explored the background of social media, as well as delving into the fundamentals of brand communication. Although there is a substantial amount of research from an organisational perspective in regards to social media, there is little from a consumer’s perspective. Therefore it would suggest that further research from an organisational perspective to understand fully their feelings about social media as a brand communication tool is necessary. Along with this a more in depth analysis of the way in which consumers perceive social media as a
30 brand communication tool, as there is little to no research available specifically within this area.
31 CHAPTER 3: METHODOLOGY 3.1 Research Paradigm and Approach Research philosophy is the way in which one constitutes knowledge. By doing so this allows for the researcher to identify and adapt their research design as the research progresses (Baxter et al, 2010). Positivism takes on an objective view, and the researcher is detached from those who are being studied. (Wilson, 2010) Interpretivism on the other hand, concentrates their efforts on one particular area of study, and actively engages with their research and its participants (Saunders et al, 2012). Positivists hold the belief that research should be scientifically carried out, and is usually based on a deductive approach (Wilson, 2010). However Interpretivism allows for the researcher to be interdependent and interact with their research participants. (Baxter et al, 2010) Researchers, who adopt this philosophy, view their surroundings as complex and open to interpretation (Wilson, 2010). Due to this, and the fact Interpretivism is usually based on an inductive approach, the researcher adopted this type of philosophy. The two main types of approaches within research are ‘inductive’ and ‘deductive’. Wilson (2010) references Kenneth F. Hyde (2000,p.83) stating that inductive consists of ‘a theory building process, starting with observations of specific instances and seeking to establish generalisation about the phenomenon under investigation’. Saunders et al (2012) explains that an inductive approach has a more flexible structure as it allows for changes within the research as it
32 progresses. It also concentrates on qualitative data, and recognises the researcher as part of the process. (Bryman & Bell, 2003) Deductive however normally begins with theory and aims to conduct research in order to prove an already existing hypothesis. (Wilson, 2010) It takes on a highly structured approach and is more concerned with scientific principles and quantitative data. (Saunders et al, 2012) This research project took on an exploratory research design, following an inductive approach. Reason being that social media is a fairly new phenomenon and there is limited existing theoretical explanation behind its success as a brand communication tool. The literature review was conducted in order to investigate and provide insight into what is already known about the subject, and to highlight the gap that exists so that further research could be conducted (Bryan and Bell, 2003). Due to the nature of the topic and to ensure reliability, multiple secondary sources were used, to identify current studies of brand communication through social media outlets. Source’s such as academic journals, books, industry market reports and newspaper articles were utilised. As always there are limitations when using secondary data, the fact that it may not correlate with your study correctly, being a crucial factor (Wilson, 2010). It may also be prone to bias or manipulation, depending on who conducted the research (Bryman and Bell, 2003). For this reason, primary data was deemed necessary in order to achieve the research objectives.
33 3.2 Research Design This study involved sequential mixed methods research, as there were two Phases of data collection and analysis. (Saunders et al, 2012) Phase one consisted of qualitative face-to-face interviews with two participants, both from different areas of the marketing department within Tesco Bank. Phase two comprised of quantitative questionnaires, which were used to compare and contrast data collected from Phase one. This made for a sequential exploratory research design (Saunders et al, 2012). This can also be explained as a ‘Methodological Triangulation’ as it allows for a mix method of data collection, and allowed for the researcher to combine findings from one method to determine if they confirm findings from the other method. (Wilson, 2010) The interviews carried out were semi-structured, in keeping with the exploratory theme. (Saunders et al, 2007) This allowed for greater flexibility (Wilson, 2010) and the observation of social cues such as tone and body language, which gave more depth to the initial verbal answer. (Opdenakker, 2006) Self completed, web-based questionnaires were then carried out in order to expand and elaborate on information gathered throughout the interviews. (Saunders et al, 2012) This allowed for the data collection process to stay cost effective and reliable, which suited the nature of this study. (Wilson, 2010)
34 3.3 Phase One - Qualitative Data Collection Qualitative data is ‘principally derived from words not numbers’. (Saunders, 2012,p.159) In order for this type of data to be deemed successful, it is crucial that it be analysed effectively, which can be difficult due to the high volume of information received. (Wolcott, 1994) It can be argued that qualitative data is commonly viewed as being more flexible as it is more receptive to change throughout the research project. (Barbour, 2008) In order to gather qualitative data for this study, face-to-face interviews with relevant key experts were utilised. Participants were both employees of Tesco Bank’s Marketing department: their Clubcard Loyalty Scheme manager and their Social Media manager. Both were given a participant information sheet to read prior to the interview informing them about the purpose of the interview (See Appendix A), and then a consent form to sign giving their informed consent to participate (See Appendix B). By gaining access to two different sectors of the marketing department, this allowed for a more in-depth analysis in regards to the implications social media is having from an organisational perspective. Access to the interviewees was achieved through the researcher’s prior connection with Tesco Bank, as a part time employee. This meant that the role of an internal researcher was adopted, and by doing so the researcher was conscious not to compromise the findings by allowing pre-conceived notions or assumptions to feed their way into the results or analysis section of the study (Saunders, 2012).
35 Semi-structured interviews were conducted, in which key topic areas that would be discussed were decided on by the researcher prior to the interview (See Appendix C). This provided opportunity for the respondent to further elaborate on specific areas, as well as allowing them to raise their own questions (Wilson, 2010). As well as giving an organisational perspective on the adoption of social media, it also gave the researcher insight into whether or not the companies intentions, translated correctly to the consumer. Content analysis was then conducted from the findings of the interview, by transcribing the recorded audio of both interviews (See Appendix D). As a form of data reduction the researcher summarised and simplified the data that was gathered, through a transcript summary. This involved compressing long statements into shorter ones, by rephrasing what the participant has said in a few key words. (Saunders et al, 2012) By doing so this allowed the researcher to highlight key themes, also known as codes, from each interview (See Appendix E & F). These codes were decided upon either by terms the interviewee had used or already existing terms used in existing theory and literature. (Saunders et al, 2012). By doing so this increased the reliability of the research, as it eliminated research bias. By analysing the data in such a way, it showed the researcher thematic threads, in order to highlight the importance of social media from an organisational perspective and their professional opinion towards the phenomenon. The researcher was then able to cluster responses in relation to the research objectives, which allowed for the creation of appropriate questions within the Phase two questionnaires.
36 3.4 Phases Two - Quantitative Data Collection Quantitative Data was used to reinforce the qualitative data gathered in Phase one through interviews, in order to assess whether or not the use of social media from an organisational perspective, translated correctly to the consumer. Antonius (2004) explains that by using quantitative data ‘we can translate into numbers some aspects of our observations’. Quantitative data can be viewed as more dependable as it is based primary on numerical figures and can be organised into charts or graphs for a more comparative analysis. (Wilson, 2010) Due to time and financial restrictions self-completed, web-based questionnaires were utilised. This helped to improve the reliability of the study, by ensuring the researcher could gather the correct amount of responses within the allocated time (Wilson, 2010). These types of questionnaires were predicted to have a variable response rate of between 30-50% (Saunders, 2012). According to Blumberg (2008) the first stage of sampling is to clearly define the target population. For this study, it would be focusing on 18+ participants, in order to avoid ethical issues. There was no maximum age limit placed on the questionnaire, as it was deemed irrelevant within the study. The sampling frame consisted of Tesco Bank Employee’s and the researcher’s personal network of family and friends. Random sampling was conducted as the researcher selected the sample at random from the sampling frame using a computer. (Saunders, 2012) Due to it being an undergraduate research project and the time restrictions imposed, the sample size was that of 100 people, in
37 order to keep it manageable as well as maintaining validity. (Saunders et al, 2012) 250 questionnaires were sent out in order to increase the response rate, and thus maintain reliability of the sample in the case that further research be conducted within the subject area. The questionnaires were distributed on “Toluna Quick Surveys”, an online survey creator tool, via Tesco Bank’s internal email system and through the researcher’s personal email to friends and family. A covering letter was included in order to brief participants before they agreed to take part (See Appendix G). Prior to distributing the questionnaires, the researcher conducted a pilot study with a group of five students from Glasgow Caledonian University in order to refine the questions and access the validity, so that respondents had no difficulty providing answers, and thus eliminating any problems recording the data, the researcher may have found further on. (Becker and Bryman, 2004) A data requirements table, which involved a six-step process, was created, to ensure that the questions respondents were asked would enable the research questions to be answered and the objectives achieved. The questionnaire consisted of ten opinion variable questions, which mirrored key topic areas that were discussed in the Phase one interviews. These types of questions record how respondents feel about something, or what they think or believe to be true or false. (Saunders, 2012) The majority of questions asked were multiple choices, except for the final question, which was open ended to allow for consumers to express their own opinions. To begin with the researcher was looking for generic data around the respondent’s participation and their opinion towards social media platforms. Respondents were then asked questions about social media
38 within a banking context, and finally it was concluded with an open question in which respondents had the opportunity to convey their opinion in their own words. By allowing for an open question at the end of the questionnaire it allowed for the researcher to encapsulate respondent’s feelings, and collect data that the researcher was unable to predict in the form of a closed question. (Bryman and Bell, 2003) The data was compiled into an excel document, through the online survey tool Quick Surveys. This allowed for respondents answered to be complied into pie charts and bar graphs that would be displayed throughout the results chapter along with the findings from the interviews. Some of the respondent’s answers from the open-ended question were used as anonymous quotes throughout the results. The rest of these answers, were compiled into a word document, and split into positive, negative or neutral/mixed comments about brand communication (See Appendix I). 3.5 Limitations and Scope As social media is such a large phenomenon and is present within multiple industries, due to the time limitations within this undergraduate study it was essential that the application of this research be refined. Therefore the primary research concentrated predominantly on social media within a banking context, in order to provide the researcher with an element of focus. The sample size also acted as a limitation; due to the fact it only reflected a small portion of the
39 populations feelings towards the use of social media as a brand communication tool. By exploring this newly found phenomenon the researcher was able to provide rich insights into how companies are approaching the shift in paradigm, and if they are finding it an obstacle or a platform to connecting with their consumer. It also allowed for interesting insight into the way in which consumers are responding to an alternative approach to relationships with the brands in which they buy from. 3.6 Ethical Standards Wilson (2010:79) explains that, as a researcher there is ‘a moral responsibility to carry out your research in an accurate and honest way’. In order to do so, there are multiple factors that need to be addressed in order to ensure the reliability and validity of the research. Most importantly during this research project, privacy, anonymity and confidentiality of participants and any sensitive data obtained must be respected whilst analysing and reporting findings. (Saunders et al, 2012) As there will be two interviews taking place with employees within Tesco Bank, it was essential to respect their privacy. (Saunders, 2012) For this reason, their names have been omitted from the research; however job titles have been named to give credibility to their views and opinions. Previously mentioned
40 documentation was provided at the start of the interview that explained the full purpose of the researcher and detailed items such as; both participants had the right to withdraw at anytime, as well as emphasising their right of not having to answer any questions they did not want to or provide any data requested from the researcher. (Opdenakker, 2006) The previously mentioned consent form, also allowed participants to give their permission for the researcher to record the interview via a voice recorder, in order to minimise the notes taken by the interviewer, and for reference during the analysis portion of the research, A copy of the final dissertation was also offered to the interviewee participants, in which they both were happy to receive for their perusal. Questionnaires, as they were self-completed and web based, it allowed for individuals to participate voluntarily. It also would allow for them to remain anonymous, allowing for them to express their true feelings without their identity acting as a barrier to the truth. (Wilson, 2010) A cover letter was included during the distribution, in order to brief respondents on exactly what the purpose of the questionnaire was, how long their data would be stored for and their right to skip any question they felt uncomfortable with. (Saunders, 2012)
41 CHAPTER FOUR: RESULTS AND ANALYSIS 4.1 Analysis Approach This chapter will present the results and analysis that have been obtained through the methods explained in chapter 3. A critical discussion of the findings and their linkages to existing literature will be explored in order to ascertain whether the new data found within this research project relates to the limited but existing information available, as well as accessing if the information gathered has assisted in achieving the research objectives. In this chapter, Social Media will be referred to as ‘SM’; Tesco Bank will be referred to as ‘TB’, their loyalty manager as ‘LM’, and their social media manager as ‘SMM’, and finally participants in the Phase two questionnaires will be referred to as ‘respondents’. 4.2 Results and Analysis of Interviews & Questionnaires Combined Figure eleven on the next page, highlights the 8 most common themes discovered throughout the interviews, along with this, respondents answers gathered in Phase two were accessed. This was to observe the influences that SM has had on brand communication from an organisational and consumer perspective, and to see if it appeared to be a positive or negative change from either perspective.
42 Figure 11 Key Themes Brand Loyalty Immediate Insight Brand Awareness Negativity via Social Media Relationship Marketing Compliance issues Unity amongst departments Effective Communication TB confirmed that the two SM platforms they actively use are Facebook and Twitter, which complimented the Harvard Business Review study (2010) that showed that 71% of businesses had adopted some form of SM as a communication tool. Respondents throughout the questionnaire had to be active on at least one platform in order to proceed. The results were in keeping with the literature reviews ranking order, that Facebook was the most popular with the largest amount of active users, then Twitter and Finally LinkedIn (See Figure Twelve on next page).
43 Figure Twelve 4.3 Explore the influence SM has within Brand Communication - From an organisational and consumer perspective Brand Awareness One influence that SM could have from a banking perspective is that it could be used to show a slightly more human side. One Respondent explained that: “It has allowed for companies to give themselves a more of a human side, a personality to the brand almost. By doing so, it allows them to connect with their consumers effectively.” By doing so this also allows organisations to build brand awareness, an aspect that Aaker (1991) explains as one of the key elements within the brand assets, 53% 30% 17% Which of the following Social Media platforms are you currently active on? Facebook Twitter LinkedIn
44 which helps to create distinction from their competitors. From the interviews it was obvious to see that building awareness of TB as a brand, was a priority. By encouraging customers to engage with the brand through SM campaigns, it helps retain existing customers by allowing them to communicate with the bank in a non-conventional manner, as well as attracting new customers. Interestingly, it appeared that by using SM as a brand awareness tool, could require a smaller budget in comparison to traditional methods, as existing customer’s followers or friends via SM channels are able to see their interaction’s with the bank on their homepages for free, which in turn attracts attention to the brand. From respondents results (see thirteen on next page) it was evident to see that using SM as a brand promotion tool has potential, due to the high volume of consumers who actively follow brands via their SM platforms. From a consumer perspective, there is room for brands on their SM platforms, as they would not be actively allowing them to become part of their personal space by following them if they did not.
45 Figure Thirteen TB’s SMM explained that due to their ‘retail bank’ status, they take much of their direction from Tesco as a group, and with TB continuing to grow, eventually it would be essential for them to establish their own SM platforms, rather than ‘piggy backing’ off the back of their parent company. As they do not publicise the fact that consumers can in fact make contact with them via SM channels, it would require a larger staff and budget allocation if in the future the bank decided to increase brand awareness/communication via SM platforms. TB’s PR team also recently started to utilise SM channels as a brand awareness tool, in relation to their charitable efforts with local communities, which is interesting as it shows that different aspects of the brand can have different levels of involvement within SM. For the bank as a whole, it is clear to see that using SM, as a brand communication tool is a fairly new concept, which however has potential if they continue to include it when developing their strategy in the near future. 69% 31% Do you follow or like any brands via your social media? Yes No
46 From figure fourteen (below) it shows that 33% of consumers expect their bank to be present on SM, which holds promise for TB in developing their SM strategy, and that the other 39% who were not too concerned about the presence of their bank on SM could possibly be convinced otherwise, if the correct marketing techniques and incentives were presented to them. By utilising SM, it allows them to influence customers in a much bigger way, and allows consumers the option to include banks within their SM platforms, which is important. Figure Fourteen Effective Communication From an organisational perspective, SM has opened up a gateway for effective communication between business and consumer; this was a prominent part of the discussion throughout both interviews. 33% 28% 39% Do you feel banks should be present on social media? Yes, if they wish to keep up with the times No, banks do not belong on social media It doesn't really bother me
47 TB’s LM said that this aspect of SM took priority, and that making sure customers received a reply if they chose it as a point of contact, was essential. This feature of the bank’s SM strategy is something they should continue to ensure, as although majority of respondents said it would depend what they were buying, it can be seen from figure fifteen (below), that effective communication between the brand and consumer does to some extent have an influence on their final purchasing decision, and by proxy their perception of the brand overall. Figure Fifteen The SMM further explained that even if it was just a generic holding response, if outwith the hours of 9am-5pm, customers would always receive a response via SM channels if attempting to contact the bank. Furthermore she explained that it had influenced them to the point, that they have two software programmes in place to assist them when interacting with customers. The first is ‘Brand Watch’ Yes 21% No 36% Depends on what I'm buying 43% Would you be less likely to buy from a brand if they were not seen to be acitvely responding to customers enquires/concerns via social media?
48 which is a well-known SM monitoring tool run by a SM agency on behalf of TB, to help them keep track of what people are saying about the brand. Secondly they use ‘Conversocial’ in order to respond to any customer queries which have been directed at the brand. TB’s SMM believed SM has allowed their interaction with customers to become a lot ‘more fluid’ as customers can express opinions and feelings easily, as opposed to traditional methods which can take longer for the brand to receive feedback, and even longer for changes to be implemented to reflect that. However because the banking brand is not necessarily, a brand in which consumers automatically think about using SM to connect with, figure sixteen (next page) shows the harsh realities that TB are presented with. For this reason, if choosing to further develop SM as a brand communication tool within the bank, it would be essential for some level of promotion to encourage and educate consumers about making use of this option the bank has in place. As of right now it would appear that from TB’s banking perspective it would appear that brand communication isn’t highly influenced by SM, and their ability to communicate effectively with their consumer. Furthermore, it appears that from a consumer perspective, they either don’t want to interact via SM, or simply have not been given enough information to make an informed decision on the matter.
49 Figure Sixteen Tying in with this, it was also discussed, that there is a lack of awareness from a consumer perspective that views and opinions expressed on SM, are captured and used as a method of feedback for brand improvement. With that being said, although consumers may not have communicated with the bank directly, even if they have ever simply posted a comment on an Facebook post by the bank, or retweeted them on Twitter, this would have had an influence on brand communication from an organisational perspective, without consumers necessarily realising they had contributed. Relationship Marketing There were many references to the influence SM has had on brand communication, specifically the aspect of relationship marketing, which as Ajio 0%3% 3% 94% Have you ever used social media to communicate with your bank? Regularly Sometimes Never
50 (1996) said, is the changing marketing paradigm. As the bank is set within a dry and serious industry, it can be difficult to build that emotional connection with customers. TB’s LM explained that a lot of the work they do is very functional, and due to this, as a brand they experience more obstacles when attempting to establish a relationship with their customers. Both managers agreed that SM established an alternative way to communicate and target their customer base. However it was TB’s SMM who made some extremely insightful comments about the banking industry and why the need for relationship marketing is becoming much more apparent. Due to the current economic climate, she explained that banks 'have to be much more transparent, open and honest and be actively responding to customers’. This has got banks dynamically thinking about the ways to communicate their brand with consumers, and the relationship they wish to establish with them, to help better the business and customer satisfaction levels. This linked well with Mangold and Faulds (2009) viewpoint that organisations are now realising the need for creating a brand dialogue in which customers can become involved in and form opinions and feedback about, rather than a brand monologue, where customers are simply talked at and told what to purchase. One respondent also, had the same viewpoint stating: “I believe that SM has made companies more reactive to their customers. They no longer can avoid issues or complaints and must deal with them in a timely manner. It also gives them the ability to introduce new ideas and special promotions in a quick and effective manner.”
51 It can be seen from figure seventeen (below) that for brands promoting via SM, consumer’s expectations are high, and SM has influenced brand communication from a consumer perspective in regards to their expectations of brand’s that are active on SM. Figure Seventeen TB’s SMM highlighted that from an organisational perspective the influence SM has had, is that it is allowing consumers to see a more ‘human side’ to the banking industry, thus enabling TB to build relationships with their customers and to understand their needs and wants more efficiently. 0 10 20 30 40 50 60 70 To provide information and news about the brand To respond to customer queries and concerns To interact with their customers, via competitions and prize give aways To encourage feedback and involve customers when developing the brand All of the above I don't expect anything from them PercentageofRespondants(%) Expectations from Customers What do you expect from companies who actively promote their brand via social media?
52 Unity Amongst Departments Both interviews highlighted that SM not only influenced brand communication, but also contributed towards bringing the overall business together. Their LM said that SM helped to bring the loyalty department together with the main business, as they were able to see results instantly from joint campaigns. For example, when their loyalty department paired up with their pet insurance department to send birthday cards to the pets and a voucher for their owner to buy them something in a Tesco store. They were able to see the results and outcome of the campaign via SM such as Twitter, in which customers had posted pictures of what they had bought their pets, and used the bank’s suggested hashtag of ‘tescopetbirthdays’ to allow them to see it. It would appear that the biggest influence in bringing the business together could be attributed to the weekly report that is distributed to all departments within the business (See Appendix J). The report consists of a combination of TB’s SM activity and customer feedback, in order to give departments a sense of what their categories reputation is via SM. Both managers agreed that this was definitely a positive influence towards the level of involvement SM has had, not only within brand communication, but also the overall business. The SMM mentioned that they would soon be implementing a new report specifically designed for senior executives ‘to get them to take SM more seriously’. The lack of importance placed on SM by senior executives, could be related to Weinberg & Pehlivan’s (2011) argument that the scarcity of proof available in regards to return of investment (ROI) and little knowledge of the different types of SM
53 available, may be contributing factors. However by TB distributing this new report, they hope it will allow them to analyse their offerings and processes more effectively, and bring to light the influence SM can have on the organisation as whole, and not just the marketing department. It was highlighted by the SMM that TB although an established retail bank, do not have a designated team in charge of SM and that it is very much managed on the side. However the LM gave a positive contribution by explaining that with the launch of their forthcoming current accounts, they have started to liaise more with the SMM. Furthermore it was explained by the SMM that in the future it would be essential for a team to be put together in order to help manage the SM aspect of the business, if TB as a brand wish to develop their strategy and presence further in the future. 4.4 Evaluate whether or not the increase of SM is viewed as a positive change from an organisational perspective Brand Loyalty Brand loyalty was quite prominent in the discussion of how SM can create a positive change within the business. TB’s LM explained that “loyalty is driven by engagement”, so by “interacting with their customers in a way that is meaningful, and by rewarding them in a genuine way, it brings it full circle back to loyalty”. One respondent said that:
54 “Brands can target consumers in a more personal way in order to increase brand loyalty.” Showing that there is knowledge of brands intentions to personalise the purchase experience for the consumer, and to connect to them on a more personal level, for example through relationship marketing. The main intention of TB’s marketing campaigns is to encourage brand ‘advocacy’, this involves retaining customers who speak favourably about the product, who then partake in word of mouth communication, thus encouraging potential customers to buy from a specific brand. Their LM explained that it is highly valued by the bank, as they ‘can’t buy that kind of exposure’, further building upon the concept in Strategic Direction (2012) about consumers marketing amongst themselves, in turn taking control of brand communication. TB’s SMM further added to this, explaining that consumers are now becoming immune to traditional marketing methods, such as the ‘tell and sell model’, as they have been over exposed to them, for example TV adverts. Due to this TB must be seen to be pursuing alternate routes of promotion, as well as actively engaging with their customers, if they wish to retain them. There is an overall positive reception from consumers, towards brands utilising SM as a brand communication tool, which can be seen in figure eighteen (next page), however there were a few negative responses, one of which said: “When I’m on SM I only want to use it to communicate with my friends”
55 With this being said, and that TB is set within a constricting industry, which will be discussed further later in this chapter, there are many obstacles that the bank will be up against if they wish to achieve brand loyalty with the help of SM. Figure Eighteen Grönroos (1997) argument that customers now have their own voice, and more choice within the market, linked well to this section, as it is not the banks who are in control anymore as previously mentioned. In order for them to remain competitive they need to be receptive to change and consumer wants. With that being said, TB’s managers felt that by actively listening, and valuing consumer opinions via SM, and addressing issues raised by customers, these customers will become loyal to the brand, which positively contributes to the business as a whole. Relating back to the previous figure, it can be seen there was a minimum amount of negativity towards brands using SM to communicate with customers, 0% 10% 20% 30% 40% 50% 60% 70% Positive Negative Neutral Percentage of Consumers (%) ConsumerResponse In general how do you feel about brands using social media as a method of communication?
56 consequently TB can turn this positive change for the consumer, into a positive change for themselves through acquiring brand loyal customers, it would then appear that everybody benefits in some way or another. Immediate Insight Throughout both interviews, this was viewed as a very positive change as to what SM can really give back to the bank. Their LM commented on the fact that SM has given them ‘more immediate insight’ and allowed them to see that ‘instant reaction’, specifically with the previously mentioned weekly report produced, that helps in monitoring positive, negative and neutral comments from TB’s Facebook and Twitter pages. Their LM also explained they could see reactions to their campaigns, in regards to customer’s gratitude or general responses. For example SM has enabled them to see the positive praise they have received from customers from an accessibility perspective, i.e. Mincom for deaf customers. From the figure nineteen (next page) this again links in with Grönroos (1994) argument, as 55% of respondents viewed SM as a positive change, as it has given them a voice, along with the other 31% believing that it was dependant on the situation, but still contributed to their voice being heard. It would be impractical for businesses not to utilise SM as a way of gathering data and feedback about their brand and products, if consumers are willing to do so, as honest data can be the most difficult to come across, and as previously pointed out by the SMM, is a more fluid method of gathering information from consumers.
57 Figure Nineteen With that being said, TB’s SMM made an excellent point, saying they felt that it was a great way to ‘gauge sentiment’ and ‘get real time information’, as well as realising that a truer response can be captured via SM which can at some points be slightly harsher - but beneficial to the business overall, which makes this a positive change within brand communication. It was also discussed, that there was a lack of awareness from a consumer perspective that views and opinions expressed on SM, were captured and used as a method of feedback for brand improvement. This is something that TB in the future could maybe think to promote, in order to allow their customers to see that their opinions and concerns expressed on SM are valued and are taken into consideration by the bank. Yes No Sometimes 0% 10% 20% 30% 40% 50% 60% Consumers Opinion NumberofResponses(%) Do you feel as a consumer, that social media gives you more of a voice, to highlight positive and negative experiences with brands you have purchased with? 55% 14% 31%
58 Negativity via Social Media Although SM has been viewed as a positive change within the business, it naturally has negative connotations as well. Both managers agreed that, TB is set within a ‘dry’ industry, and with this comes perceptions of financial services, as well as existing perceptions of the Tesco brand. Add to this the huge stigma around the fact that nobody trusts banks anymore because of the economic climate, and that presents an idea of the type of negativity TB find themselves up against. For this reason, TB’s LM said that they have approached SM with caution, as they are ‘quite risk adverse’ and have not necessarily wanted to open themselves up to that kind of exposure without being clear on how they would manage and use it. The SMM elaborated on this by explaining that SM can quite easily damage the reputation of a brand, and can be quite difficult to manage if the appropriate measures are not set in place to neutralise negativity. From a consumer perspective this was picked up on, with one respondent stating: “SM has given companies an easier way to promote as they can reach people all over the world very quickly. Managing SM could be difficult, as negative comments posted by consumers spread just as quickly as positive, so the companies have to ensure it is managed well.”
59 Figure Twenty Figure twenty (above) shows just how frequently consumers use SM, from their perspective their usage can be viewed as positive as they must enjoy it, with 85% of consumers saying they use it either hourly or daily. Both managers agreed that, although SM gave consumers a voice, it also gave them an outlet to ‘rant’ about brands, which as their LM pointed out, might only be ‘a snapshot reaction of an otherwise happy customer’. Therefore from an organisational perspective, consumer’s frequent usage of SM could correlate with the tendency to rant about negative experiences, or to express negativity towards brands when they are in a bad mood. TB’s SMM elaborated by saying, they had experienced an incident with a minor celebrity who had car insurance with them, and had taken to Twitter repeatedly, to rant about a problem he’d experienced with TB. This caught the attention of senior management; due to the amount of followers the celebrity’s negative 45% 40% 8% 7% How often do you use social media? a few times an hour a few times a day a few times a week a few times a month
60 opinions were reaching. This further builds upon Bruhn (2012) that, with SM customers can communicate with a multitude of people, and the brands themselves are not the soul source of brand communication anymore. Compliance Issues Another less than positive aspect presented, is the obstacles and challenges arising from being a bank present on SM. The main issue really seemed to be from a compliance perspective, and being set within the heavily regulated financial services industry. TB’s SMM described SM as ‘space restrictive’, and because they have many terms and conditions that need to be displayed by law issues have arisen. To explain this further, their SMM said that they are presented with the task of having to strike that balance of being present on SM and showing customers they are in keeping with the times, but at the same time still present the image of being an ‘established and trusted bank’. Anything that is present on TB’s SM platforms obviously must firstly, be factually correct and furthermore have gone through all the necessary compliance checks that all their banking products must before being released to the public. Another main compliance issue they face is that of their data policies, in regards to how customers can be marketed. These need to be updated to include SM as a method of promotion, as right now TB cannot target customers as specifically through SM as they can, without the necessary permissions.
61 Figure Twenty-One When respondents were asked, if they would give permission to their bank to use their information to target them via SM (See Figure Twenty-one above), a staggering 77% said they would not be willing to do so. However, consumers never want to be ‘marketed’ at, so it would be something that TB would need to approach with caution, and in an inventive way - in order to entice consumers into allowing them to be contacted via their SM channels. Finally, many of the issues that customers contact TB about via SM, because of their nature, need to be investigated and checked to make sure the necessary compliance routine was followed before they can give the customer an explanation or take further action. This aspect alone makes SM slightly trickier and a bigger change to adapt to for banks, as they cannot always reply instantly with an answer. 23% 77% If your bank wished to target you with relevant offers and content via social media, would you give your permission for your information to be used in this way? Yes No
62 4.5 Conclusion Throughout this chapter the results and analysis from both Phase one and Phase two methods have been discussed in order to explore the influence that SM has had on brand communication from both an organisational and consumer perspective. Furthermore it presented evidence in order to gain an understanding towards whether or not SM has been viewed as a positive change from both organisational and consumer perspectives, thus helping to discover SM’s role in developing and nurturing brand communication, specifically within a banking context.
63 CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS This research has explored the rise of the social media phenomenon and its impact in developing and nurturing brand communication. In chapter one of the dissertation, research objectives were established in order to outline a suitable course of action for the research to follow. The literature review looked at social media and its impact on brand communication, in more of a general sense and the influences it has had from both an organisational and consumer perspective. This research however only focused on one particular organisation Tesco Bank, and for that reason provides only a glimpse into the social media phenomenon. Further research which has been explained already in the previous limitations, would be essential in order to fully explore the impact social media has had on brand communication. Although there has been a mixed reaction to the approach organisations should take in regards to incorporating social media into their business strategy, it can be seen from the examples in chapter two, and the findings in chapter four - that social media whether it be positive or negative is on some level impacting the way organisations and consumers view brand communication in present day. Initially the study explored the rise of social media, in particular Facebook, Twitter and LinkedIn, by identifying their key characteristics and their individual assets as a method of brand communication. Facebook, pioneered the way forward for user generated content (Laroche, 2012), closely followed by Twitter with its micro blogging site and from the research it was clear to see, from both an organisational and consumer perspective that they remained the strongest
64 contenders within the social media world, followed by the up and coming LinkedIn. Weinberg & Pehlivan (2011) had explained there was a lack of understanding from senior management in regards to the differences between social media platforms, by exploring the key aspects and distinguishing their alternative uses, it was clear to see that without a solid understanding of each - it would be impossible to successfully implement a social media strategy. As there were only three platforms examined, a further recommendation would be to include multiple platforms and their offerings to examine the different methods of brand communication that could be installed throughout. It was apparent that the influence in which social media could have on brand communication from an organisational perspective could be dependant on the organisation itself. Specifically with Tesco Bank, the influence it seemed to be having has been minor; this is due to the obstacles of being a bank present on social media. As a retail bank, it was discovered that much of their social media strategy was dictated by their parent company, and that they had only just began development of it. It was also seen from the results, that from a consumer perspective, social media although very positively accepted as a method of brand communication in general, from a banking perspective there was little to no knowledge of its existence. This could be contributed to the fact that they as a business reside within financial services and because of this, consumers approach them on more traditional methods due to safety concerns. With this being said, another influence that social media was noted to have was the ability to increase brand awareness, an aspect in which Tesco Bank were keen to continue to utilise. It had also contributed to the influence of unity amongst their
65 marketing department, with discussion of it hoping to have the same effect on senior management. From a consumer perspective, the influence in which social media has had on brand communication, has allowed them to become more involved with the brand, in keeping with Mangold and Faulds (2009) argument. It has also allowed for more effective word of mouth communication between them and their peers, agreeing with Erik Qualman (2013) that social media has given them the ability to communicate far more effortlessly than before. Overall the perception of social media seemed to be fairly positive from an organisational perspective. Even Tesco Bank although slow to start, due to being risk adverse with the nature of their business, have begun involving themselves in the world of social media, confirming Keynote’s (2012) report that a multitude of UK companies are now active on social media platforms. Unfortunately unlike other brands, they are limited with the content they can post and the matters they can discuss via social media, effectively tying in with Chikandiwa et al (2013) argument that legal policies and extensive regulation cause obstacles for their type of organisation. However, it was noted by Tesco Bank that due to the high volume of activity present on these platforms and the amount of insight they could gain from them, it was clear, that they as well as their consumers could benefit from them having a presence on social media. As previously mentioned, there was a lack of awareness of Tesco Bank’s presence on social media from a consumer perspective, however this could be easily rectified with the correct strategy, as it was evident that consumers were happily allocating brands a space within their social media platforms. With that being said, it would appear that it is more about how innovative and creative brands can be, and the
66 way in which they can involve their consumers with their social media campaigns, rather than simply establishing a presence and hoping consumers notice them. A recommendation for this study would be to further investigate social media and its impact in developing and nurturing brand communication from a consumer perspective to see exactly the types of involvement they would like from brands and the level of contribution they would be prepared to make, as there is very little existing research to help clarify their overall stance on the matter. Furthermore to look at multiple industries in order to compare and contrast the impact social media has had on their brand communication.
67 CHAPTER SIX: REFERENCE LIST 6.1 In Text References Ajio TS., (1996), ‘The theoretical and philosophical under pinning’s of relationship marketing: Environmental factors behind the changing market paradigm’, European Journal of Marketing, Vol.30 Iss:2, pp.8-18 Aaker, JL., (1997), ‘Dimensions of Brand Personality’, Journal of Marketing, Vol.34, Iss:3, pp.347-356 Anderson, PH., (2005), ‘Relationship marketing and brand involvement of professionals through web-enhanced brand communities: The case of Coloplast’, Industrial Marketing Management, Vol.34, Iss:1, pp.39-51 Bruhn, M., Schoenmueller, V., & Schäfer, DB, (2012) ‘Are social media replacing traditional media in terms of brand equity creation?’, Management Research Review, Vol. 35 Iss:9, pp.770 – 790 Chikandiwa., ST., Contogiannis, E., & Jembere, E., (2013), ‘The Adoption of Social Media in Marketing in South African Banks’, European Business Review, Vol.25, No.4, p365-381
68 Correa, T., (2010), ‘Who interacts on the Web?: The intersection of users’ personality and social media use’, Computers in Human Behaviour, Vol.26, Iss:2, pp.247-253 Davis, FD., ‘Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology’,MIS Quarterly, Vol. 13, No. 3 (Sep., 1989), pp. 319-340 De Vries, L., Gensler, S. & Leeflang, P, (2012), ‘Popularity of Brand Posts on Brand Fan Pages: An Investigation on the Effects of Social Media Marketing’, Journal of Interactive Marketing, Vol.26, Iss:2, pp.83-91 Dye, R., (2000), ‘The Buzz on Buzz’, Harvard Business Review, pp.139-146 Emarketer Report (2012), ‘Do Social Media Postings Always Require A Brand Response’, Available at: http://www.marketresearchworld.net/content/view/4528/48/ Last Accessed: 14/11/2013 Facebook Official Website (2013), ‘Key Facts’ page, Available at: http://newsroom.fb.com/Key-Facts, Last Accessed 14/11/2013 Facebook Official Website (2013), ‘Like’ Button Information’, Available at https://www.facebook.com/like , Last Accessed 09/12/2013 Feick, L.F. & Price, L.L. (1987) ‘The market maven: a diffuser of marketplace
69 Information’, Journal of Marketing, Issue: 51, pp. 83–97. Fisher, T., (2009), ‘ROI in Social Media: A look at the arguments’, Database marketing & Customer Strategy Management, Vol.16, Iss:3, pp.189-195 Fuan, L, & Nicholls, JAF., (2000), ‘Transactional or Relationship Marketing: Determinants of Strategic Choices’, Journal of Marketing Management, Vol.16, Iss:5, pp.449-464 Gensenhues, A., ‘Survey: 71% of Companies Concerned Over Social Media Risks, But only 36% Provide Employee Training’, Marketing Land, Available at: http://marketingland.com/survey-71-of-companies-concerned-about-social- media-risks-only-36-do-social-media-training-60212, Last Accessed 10/12/2013 Gillian, P., (2007) ‘The new influencers: A marketer's guide to the new social media.’ Quill Driver Books, Sanger Grönroos, C., (1997) ‘Keynote paper from marketing mix to relationship marketing - towards a paradigm shift in marketing’, Asia-Australia Marketing Journal, Vol.2, Iss:1, pp.332-339 Harvard Business Review, (2010), ‘The New Conversation: Taking Social Media from Talk to Action, SAAS
70 Hennig-Thurau, T., Gwinner, K.P., Walsh, G. & Gremler, D.D. (2004) ‘Electronic Word-of-mouth via consumer-opinion platforms: what motivates consumers to Articulate themselves on the Internet?’, Journal of Interactive Marketing, 18 (1), pp. 38–52 Kaplan, AM., Haenlein, M., (2010), ‘Users of the world, unite! The challenges and opportunities of Social Media’, Business Horizons, Vol: 53, Iss: 1,pp.59-68 Keller, KL., & Lehmann, DR., (2006), ‘Brands and Branding: Research Findings and Future Priorities’, Marketing Science, Vol.25, Iss:6 Keller, KL., (1993), ‘Conceptualizing, measuring and managing customer-based brand equity’, Journal of Marketing, Vol:57, Iss:1, pp.1-22 Keynote (2012), ‘Social Media Market Assessment’, Available at: https://www.keynote.co.uk/market-intelligence/view/product/10622/social- media-marketing?highlight=social+media&utm_source=kn.reports.search, Last Accessed: 10/11/2013 Knox, S., & Walker, D., (2001), ‘Measuring and Managing brand loyalty’, Journal of Strategic Marketing, Vol:9, Iss:2, pp.111-128 Kotler, P., & Armstrong, G., (2010), ‘Principles of Marketing’, Pearson Education Krum J., et al (2008), ‘User,-Generated Content’, Vol:7, Iss:4, pp.10-11
71 Laczniak, RN., et al (2001), ‘Consumers’ Responses to Negative Word-of-Mouth Communication: An Attribution Theory Perspective’, Vol.11, Iss:1, pp.57-73 Laroche, M., Habibi, MR., Richard, MO. & Sankaranarayanan, R., (2012), ‘The effects of social media based brand communities on brand community makers, value creation practices, brand trust and brand loyalty’, Computers in Human Behavior, Vol. 28, Iss:5 pp.1755-1767 Lenhart, A., & Madden, M. (2007). ‘Social networking websites and teens: An overview’, Reprinted by, Pew Internet & American life project Levitt, T. (1938), ‘The globalisation of markets’, Harvard Business Review, Vol.61, Iss:3, pp.92-102 LinkedIn Official Website (2013), ‘About Us’ page, Available at: http://press.linkedin.com/about , Last Accessed 14/11/2013 MBA Lectures Website (2013), ‘Four P’s of Marketing’, Available at: http://mba- lectures.com/marketing/principles-of-marketing/654/marketing-mix-or-four- ps-of-marketing.html , Last Accessed 19/02/2014 Mangold, WG., Faulds, JD., (2009), ‘Social Media: The New Hybrid element of the promotional Mix’, Kelley School of Business, Indiana University, Business Horizons, pp.357-365
72 Michael A. Steizner (2013) ‘Social Media Marketing Industry Report 2013’, Social Media Examiner, Available at: http://www.socialmediaexaminer.com/SocialMediaMarketingIndustryReport20 13.pdf Mintel Oxygen (2013) ‘Mobile Phones – UK”, Available at: http://academic.mintel.com/display/655027/?highlight=true#hit1 , Last Accessed: 11/11/2013 Mintel Oxygen (2013), ‘Social Networking - UK’, Available at: http://academic.mintel.com/display/666570/ , Last Accessed: 11/11/2013 Mintel Oxygen (2013), ‘Digital Trends’, Available at: http://academic.mintel.com/display/688317/#figure58 , Last Accessed 12/11/2013 Moth, D., (2014), ‘Eight awesome social campaigns from Starbucks’, Available at: https://econsultancy.com/blog/64328-eight-awesome-social-campaigns-from- starbucks, Last Accessed: 02/04/14 Mitic, M., & Kapoulous, A (2012), ‘Understanding the Role of Social Media in Bank Marketing’, Marketing Intelligence and Planning, Vol.30, No.7, pp.668-686
73 Muniz, AM., & Schau, JH., (2002), ‘Brand Communities and Personal Identities: Negotiations in cyberspace’, Advances in Consumer Research, Vol.29, pp.344-349 New York Times Official Twitter (2013), Available at: https://twitter.com/nytimes Last Accessed 15/12/2013 Nickels, WG., & Wood, MB., (1997), ‘Marketing: Relationships, quality, value’, New York, Worth Publications Nolan, H., (2009), ‘New York Times ‘Social Media Editor’ Playing Out Exactly As Suspected’, Available at: http://gawker.com/5270593/new-york-times-social- media-editor-playing-out-exactly-as-suspected, Last Accessed 13/11/2013 Petrof, JV., (1997), ‘Relationship Marketing: The Wheel Reinvented?’, Business Horizons, Vol.40, pp.26-31 Qualman, E., (2013), ‘Socialnomics: How Social Media Transforms the Way We Live and Do Business’, Google EBook, pp.1-2 Schultz, DE., & Peltier J., (2013), ‘Social Media’s Slippery slope: Challenges, Opportunities and Future Research Directions’, Journal of Research in Interactive Marketing, Vol.7, No.2, pp.86-99 Scott, DM., (2010), ‘The New Rules of Marketing & PR’, E-Book, Available at: http://books.google.co.uk/books?hl=en&lr=&id=ZV-
74 GPw5BYq0C&oi=fnd&pg=PA21&dq=tradtional+vs+social+media&ots=xpSEur5K nh&sig=5l5KbJnDb5RYpOey4QCxx3X5IPo#v=onepage&q&f=false , Last Accessed: 12/11/2013 Social Bakers Report (2014), ‘KLM socially devoted’, available at: http://www.socialbakers.com/storage/www/klm-sociallydevoted.pdf, Last Accessed: 02/04/14 Strategic Direction (2012), ‘New media needs new marketing: Social Networking challenges traditional methods’, pp.24-27, Online Source, Avaliable at: http://www.emeraldinsight.com/journals.htm/journals.htm?issn=0258- 0543&volume=28&issue=6&articleid=17026976&show=html&PHPSESSID=g67i cev9jh2hke41d62jt4v9e0 Last Accessed: 17/12/2013 Twitter Official Website (2013), ‘About Us’ page, Available at: https://about.twitter.com, Last Accessed: 13/11/2013 Weinberg, BD., & Pehlivan E., (2011), ‘Social Spending: Managing the social media mix’, Business Horizons, Vol.54, Iss:3, pp.275-282 Weitz, BA., & Jap, SD., (1995), ‘Relationship marketing and distribution channels’, Journal of the academy of Marketing Science, Vol.23, Iss:5, pp.305-320
75 6.2 Bibliography Arruda, W., (2009), ‘Brand Communication: The Three C’s’, Thunderbird International Business Review, Vol.51, Iss:5, pp.406-416 Austen, A., (1983) ‘The Marketing Concept - Is It Obsolete?’, Quarterly Review of Marketing, Vol.9, Iss:1, pp.6-8 Blanchard, O., (2011), ‘Social Media ROI: Managing and Measuring Social Media Efforts in your organisation’, Pearson Education Brodie, RJ., et al (1997), ‘Towards a paradigm shift in marketing? An examination of current marketing practices’, Journal of Marketing Management, Vol.13, Iss:5, pp.383-406 Brown, J., et al (2007) ‘Word of mouth communication within online communities: Conceptualizing the online social network’, Journal of Interactive Marketing, Vol:21, Iss:3, pp.2-20 Brownlie, D., Saren, M., (1991), ‘The Four P’s of the marketing concept: Prescriptive, Polemical, Permanent and Problematical’, European Journal of Marketing, Vol.26, Iss:4, pp.34-47
76 Emarketer Report (2011), ‘How Well is Social Media fitting into the Marketing Mix’, Available at: http://www.marketresearchworld.net/content/view/3861/48/ Last Accessed: 14/11/2013 Emarketer Report (2012), ‘Is your social media strategy global’, Available at: http://www.marketresearchworld.net/content/view/4767/48/, Last Accessed: 12/11/2013 Emarketer Report (2011), ‘Worldwide Social Network Ad Spending: A Rising Tide’, Available at: http://www.emarketer.com/Report.aspx?code=emarketer_2000692], Last Accessed 14/12/2013 Hubspot (2013) ‘101 Companies rocking it on social media’, Ebook, Available at: http://cdn1.hubspot.com/hub/53/101-Companies-Rocking-Social-media- HubSpotv5.pdf Last Accessed 10/12/2013 Kietzmann, HJ., et al , (2011) ‘Social media? Get serious! Understanding the functional building blocks of social media’, Business Horizons, Vol:54, Iss:3, King, S., (1991), ‘Brand Building in the 1990’s’, The Journal of Consumer Marketing, Vol.8, Iss:4, pp.43-52
77 Mcrea, L., (2012), ’16 Brands Leading the Way with Exemplary Social Media Customer Service’, Available at: http://www.ignitesocialmedia.com/social- media-examples/top-brands-social-media-customer-service-facebook-twitter/, Last Accessed: 02/04/14 Mintel Oxygen (2012) ‘Smartphone Purchasing Habits - UK’, Available at: http://www.marketresearchworld.net/content/view/3861/48/, Last Accessed: 10/11/2013 Pellegrino, R., (2013), ‘5 Examples of Brands that Exceed Social Media Expectations’, Available at: http://socialfresh.com/5-examples-of-brands-that- exceed-social-media-expectations/, Last Accessed: 02/04/14 Trusov, M., et al (2009), ‘Effects of word-of-mouth versus traditional marketing, findings from an internet social networking site’, Journal of Marketing, Vol:73 Iss: 9, pp.90-102. Yap KB., et al (2013), ‘ The relationship between electronic word-of-mouth motivations and message characteristics: The sender’s perspective’, Australasian Marketing Journal, Vol: 21, Issue 1, , pp.66-74 Yoo, B., et al (2000), ‘An examination of selected marketing mix elements and brand equity’, Journal of the Academy of Marketing Science, Vol. 28 Iss:2, pp.195- 211.
78 Appendix A: Participant Information Sheet Purpose of the research Final Year Dissertation, which aims to achieve the following objectives:  Identify key factors in the rise of Social Media (In particular: Facebook, Twitter and LinkedIn)  Explore the importance social media has within brand communication, from both a consumer and organisational perspective  Evaluate whether or not the increase of social media is viewed as a positive change from both consumers and organisations The Researcher Yasmin Love McKeag - Final Year (Honours Student) at Glasgow Caledonian University The Sample for the Organisational Perspective Interviews with two employees’ from Tesco Bank: Social Media & Loyalty Scheme Requirements of taking part  Views and Opinions on the effect of social media from an organisational perspective  One Semi Structured Interview with each participant, that should last around 30-40 minutes
79 Participant Information and Rights  Participation is voluntary  Participants have the right to decline to answer a question or set of questions  Participants names will be omitted from the research project, only job titles will be included  Participants have control over the right to record any of their responses  Participants may withdraw at anytime  By participating in the interview, you will be contributing towards an undergraduate study about social media and its effect on brand communication The use of collected data  Data will be analysed by the researcher through the use of a transcription, and then a transcript summary, followed by coding of key themes discussed throughout the interview  The researcher’s dissertation supervisor, as well as the examination board will have access to the final dissertation  If participants are happy for the information they have provided to be made public, it would be available for anybody to view  Data will be stored on a the researchers personal memory stick/laptop/paper filing system  Any data that is deemed ‘sensitive’ will be destroyed by the 10th of April 2014 when the dissertation is handed in Contact Details If participants have any queries or concerns, please contact me on the following: Mobile: 07807921996 Email: ymckea10@caledonian.ac.uk Thank You for taking the time to read this participation sheet please now read through and sign the consent form
80 Appendix B (1):
81 Appendix B (2):
82 Appendix C: Interview Prompts (For Social Media Manager) Briefing  Hand out Participant information Form & get Consent Forms signed  Undergraduate Dissertation Project  “Exploring the Rise of the Social Media Phenomenon and Investigating its Role and Impact in Developing and Nurturing Brand Communication. Looking Specifically at Tesco Bank (Service)”  Interviewing employee’s at Tesco Bank in order to gain an organisational perspective of the implications of social media  Semi-structured interviews, so feel free to ask your own questions and add anything you feel may be of use throughout the interview  Thank you for your participation and taking time out of your schedule to meet with me Actual Interview From a general perspective how do you feel about social media and how has affected the way companies promote and manage their brand? Do you feel it has a more of a positive or negative influence? What are the most common social media platforms that Tesco Bank uses? Is there any specific software that you utilise in order to monitor the brand’s image via social media? What are the biggest obstacles Tesco Bank faces when promoting themselves through Social Media? Have there been any specific instances when you can remember social media having a negative impact on the Tesco Bank Brand? (If yes, how did you handle this?)
83 Have there been any specific instances where you can remember social media having a very positive impact on the Tesco Bank Brand (If yes, how was this reflected?) Are you allocated a sufficient budget in order to manage social media? Do you feel social media will continue to grow and be a permanent influence on day-to-day business? Do you find it more or less difficult to constantly monitor customers wants and needs via social media, rather than other marketing channels? Do you regularly liaise with different departments in regards to social media? In your opinion, what are the most useful and least useful aspects of social media? Is there anything else you would like to add in regards to the social media phenomenon and how it has affected the way companies promote and manage their brand? Debriefing  Thank you for participating in my research, it is greatly appreciated  Offer a final copy of the dissertation when it is completed, acquire address to send it to  End of Interview Interview Prompts (For Loyalty Manager) Briefing  Hand out Participant information Form & get Consent Forms signed
84  Undergraduate Dissertation Project  “Exploring the Rise of the Social Media Phenomenon and Investigating its Role and Impact in Developing and Nurturing Brand Communication. Specifically Tesco Bank (Service)”  Interviewing employee’s at Tesco Bank in order to gain an organisational perspective of the implications of social media  Semi-structured interviews, so feel free to ask your own questions and add anything you feel may be of use throughout the interview  Thank you for your participation and taking time out of your schedule to meet with me Actual Interview From a general perspective how do you feel social media has effected the way companies promote and manage their brand? Do you feel it has had a positive or negative influence on the Clubcard loyalty scheme? What are the most common platforms that the loyalty team look to promote/monitor their offerings through? Do you feel that social media has allowed for the loyalty team to analyse the response of their offerings more effectively? Is there any particular instance you can remember social media having a negative effect on the Clubcard loyalty scheme? (If yes, how did you handle this) Is there any particular instance when you can remember social media having a very positive effect on the Clubcard loyalty scheme? (If yes, how was this reflected?) Do you feel social media will continue to grow and be a permanent influence on day-to-day business? Do you regularly liaise with Tesco Bank’s social media manager?
85 Do you find it less or more difficult to monitor customers responses to the Clubcard loyalty scheme via social media? If there any issues the loyalty team find in regards to social media and the effect it has on you being able to do your job? Is there anything else you would like to add in regards to the social media phenomenon and how it has affected the way the loyalty team promote and manage their department? Debriefing  Thank you for participating in my research, it is greatly appreciated  Offer a final copy of the dissertation when it is completed, acquire address to send it to  End of Interview
86 Appendix D: (Loyalty Manager) Interview Transcribe Wednesday 26th February 2014 Loyalty Scheme Manager (3pm-3: 30pm) Location: Tesco Bank Haymarket, Edinburgh (Conference Room) Participation Information sheet and Consent forms passed out and signed by all parties involved prior to the interview starting Interview Begins Researcher: Good afternoon, and thank you for participating within my undergraduate dissertation research project. Participant: Good afternoon, very happy to help. Researcher: OK, so the first question is, from a general perspective how do you feel about social media and how it has affected the way companies promote and manage their brand? Participant: Eh… I think social media is an interesting one. You know if you look at the rise of it over even the past five years, it’s been phenomenal and you see how companies start to use social media in a really positive way. For example some of the viral campaigns they’ve been able to do, you would of traditionally been able to deliver that through traditional marketing channels. Researcher: Yes, absolutely. Participant: I think from a bank perspective its slightly more difficult, so in terms of brands that customers would choose to interact with, Bank isn’t necessarily one you think about in a positive fashion. So it makes it difficult for us in terms of what our social media strategy should look like. Researcher: So in a general perspective you think it has had a positive influence, however for the banking industry it has been more complicated, in regards to actually promoting your message to consumers? Participant: Yeah… difficult in the sense of trying to strike that balance. So… we’re a bank but we’re part of a retailer, there’s also perceptions in the market of both financial services and Tesco unfortunately, that you kind of compete with. I think whilst social media offers you, from a customer perspective a chance to interact with that business and for us from business perspective to be closer to our customer; it also opens up a really negative connotation at times.
87 Research: Yes, I can understand that. What would you say are the most common social media platforms that Tesco Bank uses? Participant: So in terms of where we see our regular reporting coming from its Facebook and Twitter, not surprisingly and I’m sure our social media manager will go onto talk about it with you later, but we see a weekly report that looks at the number of mentions across a whole range of different topics, and captures whether they are positive, negative or neutral. Researcher: So do you feel that social media has allowed for the loyalty team to analyse the response of their offerings more effectively? Participant: I think it’s given us… maybe not more effectively… but it gives us a more immediate insight. So… traditionally when you run a campaign, you might have to wait 8 weeks and then you would see what the redemption rate is or you might have to wait a year and see whether that customer stays with their policy. Where as for us now, we can see that instant reaction and sometimes that’s because we’re driving customers to engage with us socially, so we might put like a hashtag (#) on a piece of work or it might be that they’re proactively responding to what they perceive as a ‘kind gesture’. For example, we are running a programme with the pet insurance department, where we send out birthday cards to the pet. Researcher: oh really…that’s a brilliant idea! Participant: Thank you, it was one of my own ideas (Laughs) Researcher: No honestly, its really good, cause I’ve got friends who don’t only treat their animal as a pet, but as part of their family, so that personal aspect attached to their pet insurance, that’s the kind of thing that makes the difference. Participant: It’s a nice piece of work actually to do, cause if you think about most banking products their quite functional and it’s hard to get the sort of emotional engagement and that’s where its important for us. So the birthday card gives us an opportunity to send a card to the pet, personalised with the pet name, it talks about giving the voucher to their owner to buy them a treat… Researcher: Oh that’s really good... Participant: So it’s all kind of done in that style. So we’ve got a hashtag for that ‘#tescopetbirthdays’ and we’ve seen a really great response on social media of customers taking a picture of the card, and you know like sharing it or taking a picture of what they’ve bought for the pet with the voucher that we’ve given them. So we have worked along side the pet category to give them like an unconditional pet coupon to spend in-store on their pet. Researcher: That’s really nice… Participant: Yeah so it’s quite a nice idea. It also brings us together with the main business, but again from a social media perspective we’re seeing that instant reaction, cause on a weekly basis we’re able to see the response we’re getting from customers.
88 So it has it’s benefit for us, in that the customer is responding really positive to it, unless the pet has died…. which we’ve had two cases of unfortunately. Researcher: Oh really, that’s unfortunate. Participant: So from that we’ve seen the negative response that’s came out of it. But equally from a business perspective it helps us further engage with the pet category so for them to provide funding, they’re seeing the customer response and that kind of engagement. So I think that’s where social media can play a role, not just in the brand comm’s but in the sort of overall, ways of bringing the business together. Researcher: So I know you touched upon it, but in regards to social media having a negative effect on the Clubcard loyalty scheme, how did you handle this? Participant: Well yes…in the instance of the pet birthdays where the pet had died, we took all reasonable steps to ensure that our data was as up to date as possible, and essentially we know that there’s a lag time of I think five days, where the pet could have died, we wouldn’t pick it up and that card would be mailed. However when we measure that risk, it’s so small that we don’t expect it to be an issue but yes for one particular customer they went on Facebook and had a lengthy rant about how insensitive it was and you know I think kind of missed the sentiment. Again its that balance of we’re trying to engage with you (the customer) we get that its something quite emotional. So where it’s a death it’s a little harder to deal with, and we’ve kind of taken the hit on that. Researcher: Yes, I can imagine that being quite a sensitive subject. Participant: In terms of response, from a campaign management perspective there’s not really much more we can do, as we’ve already thought through those exceptions. In terms of how we respond to the customer, we have a social media team, so not within the bank, but within Tesco that are set up to respond to customer interactions. So… if its someone that’s on saying ‘yay, just got a great deal at Tesco pet insurance’, we would have someone that would provide, you know quite a generic response or at lest acknowledge it. As again its about bringing customer and business a bit closer together. Researcher: Yes, absolutely. So what do you think about that from a loyalty perspective? Participant: Loyalty is driven by engagement and it’s those kinds of touch points. So if we can engage with our customers with our customers the right way, and talk to them in a way that’s meaningful and give them something that rewards them in a genuine way, that sort of brings it full circle back to loyalty. Then that’s how we start to move them through, and I think that’s how social media can help to give us a measure of that. Researcher: So almost like giving the brand a personality and allowing consumers to feel more connected to the brand, via personalised vouchers etc. I think that is a great aspect of the Tesco Clubcard loyalty scheme as it gives the brand a face, and allows for consumers to connect on a far more personal level.
89 Participant: I think what has been quite interesting, I saw one recently where I think it was Tesco Mobile Customer Service and a couple of the other ‘handles’ (@...), and they were interacting with each other? Researcher: I’ve seen that, it involved Tesco Mobile Customer Services, Yorkshire Tea, Cadburys, Jaffa cakes and a few others if I remember correctly? Which I thought was brilliant. Participant: Yes that’s right! Researcher: I thought that gave a real life like feel to all the brands involved, as they were all interacting with each other and making jokes and customers really respond well to that sort of thing, which is what social media is really great for I think! Participant: Yes I agree, I guess the flip side of that though is, the number of times I then seen that conversation shared on my news feed on Facebook was unbelievable. And it’s about how that then starts to drive that ‘buzz’. Researcher: Yeah Absolutely! Participant: So there’s two parts, you might have a perception of Tesco, or Tesco Bank as being a bit dull, and it’s a bank or whatever. So there’s one view, or you might not have an awareness of us at all, that’s something that we also compete with. So I think by sometimes showing that slightly more human side, again from a business perspective that helps massively with brand. Researcher: That’s very interesting. Are there any other than campaigns other than the pet insurance one we spoke about earlier, that you feel have received a very positive reaction via social media? Participant: Yes, there has been another programme that we’ve run. What these campaigns help to do is create ‘advocacy’ and we can’t buy that kind of exposure, so it’s valued by the brand. We launched a campaign about two Christmas’ ago, and this was an overall Tesco programme that the bank were part of, it was called ‘Love Loyals’. It was basically, we looked at it within a couple of different product areas within the bank, and we identified customers that had either been with us for a long period of time or… I guess customers that were generally more loyal. Researcher: OK, and what kind of reward did you offer customers? Participant: Well with car insurance for example, we sent customers an ice scraper through their door, and a voucher for de-icer, with just a wee card and with the strap line ‘Just For You’. Again from a social media perspective, what we were seeing from customers was ‘Thanks Tesco for thinking about me’. Researcher: It’s the little things like that, that do help you with retaining customers I’m sure. Participant: Yes, just the little kind intentions count. Equally with credit cards, we offered them either champagne or chocolates and again it was just a thank you for
90 choosing to be a customer. I think social media is so often used as sort of a ‘boast’, a sort of ‘look what I got’… Researcher: Yes that’s very true… Participant: …and whilst we’re not doing it because we want customers to boast, we are doing it for that simple thank you, it’s almost an associated benefit. Researcher: Absolutely, as it builds awareness and the customer promotes Tesco by promoting what you have rewarded them with, it’s a very clever idea. Participant: So in an ideal world, a customer would post a picture of the champagne with a ‘thanks Tesco’, one of their friends or followers asks ‘how did you get that?’, they respond with ‘I got it for being a Tesco Bank credit card customer’, prompt, ‘I should go have a look at how I can get involved in this’. Researcher: That’s a very good way to look at it. So do you feel social media will continue to grow and be a permanent influence on day to day business, as there are mixed opinions of whether or not the likes of Facebook will last? Participant: I think it will still be a prominent part; any change will be useful I predict. I don’t know about you but I find it hard to imagine life without Facebook, as its something I check multiple times throughout the day just out of curiosity to see what’s going on…(Laughs) Researcher: (Laughs)…yes I’m guilty of this too. Participant: So being in that habit it’s quite hard to break that cycle. For other social media platforms coming in, for example Snapchat, Whatsapp, etc., I think there will still be social media but just in a different form. So for us as a Bank, it’s about how we develop a strategy to work with that. Certainly over the last few years, we haven’t had a social media strategy as such, and a lot of that has been driven by the fact that we’re quite ‘risk averse’, so we don’t want to open ourselves up to that kind of exposure, without being clear about how we would manage it and how we would use it. But yeah, I think we will change with the times though, if you look at the loyalty scheme just now, which are delivered through email, now that’s great for a time, but that’s not the future. I want to be able to send it to customers through the app, which they’ve downloaded on their phone, and how they interact with the scheme from there. Researcher: Yeah, that sounds to me like a very forward thinking and positive vision to have. Participant: Yeah, I think it’s a natural development we would have. Researcher: Has there been any campaigns in particular that have caught your eye from other companies that you think could be utilised within the Tesco Bank setting? Participant: Well, I don’t know if you saw it, I think it launched just prior to Christmas 2013. It was ‘West Jet’ airlines in America, they asked all their customers prior to boarding one of their flights what they would like for Christmas, and when
91 they had landed all the gifts were coming through baggage claim waiting for the customers? Researcher: Yes, I thought that was wonderful, such a nice idea and very sentimental. Participant: So taking that kind of idea, of asking a question and finding a way to deliver it to them, so not necessarily doing it in the same manner…. Researcher: … but taking the positive aspect of it and making it your own? Participant: Yeah Absolutely. Researcher: That’s another great aspect of social media, because it does spread so quickly, a lot of companies can get different ideas from each other and taking one idea and improving upon it, so that the hype from the original idea is almost over shadowed by the company who have bettered the idea? Participant: Well yes exactly, I mean I hope I’m not taking you off track here but I used to work for T-Mobile… Researcher: No by all means carry on… Participant: Well just as I was coming to the end of my time there, there big campaign was the ‘flash mob’, at Victoria station down in London. I think that was the first time that had been done on TV, and the purpose of it was less about the actual dance itself, but as they were filming round in the crowd, it was everybody with their phones out filming it themselves, and again its that immediacy of guessing that message out. So what’s a flash mob got to do with T-Mobile? Well nothing. But T-Mobile gives you the power to share that moment, and that’s the connection. Researcher: Ah, that’s brilliant. Very Clever. Participant: … and when you see how often that is now used, I mean your right people have taken that idea, in fact West Jet did a flash mob the year previous, the same kind of idea. You can get away with it; immediacy is a key thing in terms of how customers can take it out. Researcher: So do you regularly liaise with Tesco Bank’s social media manager if you had new offers rolling out which you wanted to have a positive impact via social media? Participant: It’s not something we do regularly, but I think we’re probably starting to move into that sphere. For example with the fourth coming launch of current accounts, that’s a great way for us to get the message out to a really wide base, really quickly. As well as perhaps giving us the opportunity to do it in a different style, so it’s not just your standard poster in the window, its about how can we use that whether its through a game or an app, or just simple messaging to really amplify. So the launch of current accounts is really been the first time we’ve actively looked to do it as part of a campaign, we kind of dip our toe a little bit in it. For example if you were to put it up against what Tesco do as a main business, we’re a drop in the ocean,
92 but I think we will eventually start to see it as a bigger part of what Tesco Bank do as a business. Researcher: Yes, this is why I wanted to focus on the banking industry for my research as I know there are more obstacles for the banking sector in regards to regulation and compliance, that what other businesses maybe come up against when incorporating social media into their marketing strategy. So I’m looking for that contrast, as a lot of the information I’ve found so far isn’t from a banking perspective, as it is such a new phenomenon. Participant: Definitely it’s a fine line to tread, I’m sure you would have seen this yourself being an employee of Tesco Bank. With the guidelines that come out every Christmas explaining what we can and cannot post as staff, on Facebook or through any of the feeds. We’ve got to be careful we’re not disparaging about our employer, or disclosing any sort of sensitive information. Researcher: Yes absolutely… Participant: There’s also a lack of awareness from a customer perspective that we capture what they say? So obviously it depends on your privacy settings, but we get the verbatim quote, and it tells us whom that person is. So for example if I was to go onto my Facebook and say ‘Tesco Bank are a shower of terrible people’, the words ‘Tesco Bank’ would trigger it, and my comment would come up. So that’s all noted in our weekly reports. Researcher: So do you find it less or more difficult to monitor customers responses to the Clubcard loyalty scheme via social media? Participant: Yeah I’d say this helps in a more positive fashion, as you get a truer sense, when your posting on social, you’re not doing it with the question in mind. So for example when you get a questionnaire to answers, its quite structured questions, and its only allowing you to think between these boundaries. If I’m ‘tweeting’ (posting via twitter) for example, I’m doing that about how I genuinely feel and not with anything else in mind. Yeah I think you get a truer, possibly harsher measure sometimes, but I think that’s probably what we need to see. Researcher: Yeah definitely, and I think that’s really beneficial if you are getting a true response, as it can only help the business improve. Participant: I think the other thing that comes to mind; you also get responses in the heat of the moment. For example, people taking to social media and not necessarily thinking about the repercussions of their actions. Again that’s where, that’s where you would need to take some of the negative comments with a pinch of salt. Researcher: Yeah from working in the call centre in the credit card department, sometimes customers don’t give you the opportunity to explain and rectify the situation before they want you to close their account, or become very angry. Participant: Yeah it’s almost as if you only see that one viewpoint, it’s a snapshot reaction of an otherwise very happy customer. However I think what we need to
93 concentrate on is showing our customers that we are willing to engage with them, and respond to those kind of criticisms, which I think our social media team within Tesco Bank do a very good job with. Researcher: I think the fact that you as a Bank respond to your customers via social media, and have established yourself on social media is great. Especially with the loyalty scheme in place, it gives you an edge over other banks who maybe don’t have something similar in place. Participant: Well yes, that’s what we are trying to achieve. Researcher: Well, that’s us pretty much covered everything, is there anything else that you want to add about the social media phenomenon and the way it has affected how the loyalty team manage and operate their department? Participant: Eh… no I don’t think so. Other than the fact, its probably one for the future for us…. Woman enters the conference room Participant: (Whispered) We’re just doing an interview…. Woman leaves the conference room Participant: … its just … eh … thinking about some of the programmes we have on at the moment, and how would we take that onto the next level via social media. Certainly within a loyalty perspective, it’s a future platform, but future as in the next 6-9 months and we just need to get to grips with it. Researcher: Yes, I guess because it is such a big phenomenon and does affect so many different aspects with the business, you do need to sit down and really have a forward plan to follow. Participant: Yes absolutely. Researcher: Well thank you very much for your time, your insight has been brilliant. Would you like to see a copy of the final dissertation? Participant: My pleasure, and yes that would be great. END OF INTERVIEW
94 Appendix D: (Social Media Manager) Interview Transcribe Wednesday 26th February 2014 Social Media Manager (4pm-4: 30pm) Location: Tesco Bank Haymarket, Edinburgh (Conference Room) INTERVIEW BEGINS Participation Information sheet and Consent forms passed out and signed by all parties involved prior to the interview starting Researcher: Good afternoon, and thank you for participating within my undergraduate dissertation research project. Participant: Good afternoon, very happy to help. Researcher: So the first question is, from a general perspective how do you feel about social media and how it’s affected the way companies promote and manage their brand? Participant: That’s a good question. So from a banking perspective its thrown up a lot of questions and I suppose a lot of concerns, because I think people aren’t stupid, organisations know a lot of their consumers are on social media channels and obviously it gives them another channel in which they can potentially market and talk to their customers through. I think when it comes to Banking, there is a lot more to think about, from an organisational perspective there are a lot of question marks about how do we enter the market? What are the best channels we should use? What are the implications of entering those channels from an operational perspective, as well as a compliance perspective? Because obviously there are so many things around risk and legal, all of our marketing assets that go on any other channel need to be signed off by financial promotions, some of them need to go through legal. So what implications does that have, would we need to get every single post that we signed off on the Facebook page for example, by those channels. So I think it’s exciting for organisations, from a banking perspective it does present itself as a step into the unknown I guess? I mean Tesco Bank have been quite slow in getting into social media, and there are banks out their like Barclays and American Express, who do a lot in social media. But I think there’s a lot more thought that needs to go into what your presence looks like on social media platforms and what you want it to be for. Researcher: So would you say its had more of a positive or negative influence on the bank? Participant: Oh I absolutely think positive! Because I think from a broader perspective it’s really got the banking industry to be a bit more forward facing and a bit more innovative. Had it not been for social media, we probably would have continued the
95 same route we’ve always gone down, and obviously with banking in general there is a real, maybe not so much now, but especially after recession that whole sort of…. Researcher: Stigma? Participant: Yes absolutely! A huge stigma around the fact nobody knows where your moneys going, what’s being done with it and that nobody trusts banks. Researcher: Everybody’s kind of protective and keeps everything close to their chest? Participant: Yes, however with social media you have to be much more transparent, you have to be open, you have to be honest, you have to be able to respond to customers quickly and so its actually got banks thinking, I think, about how they need to portray themselves as a brand. They can’t just be this closed wall, where they don’t give anything away, because they know that customers don’t trust them and its not going to be the way to earn their trust going forward. So I think social media has given them something to think about in terms of connecting with customers on a more…. Researcher: Personal Level? Participant: Personal Level, exactly! Researcher: Well there is that whole shift in paradigm from transactional marketing, to relationship marketing… Participant: That is exactly it! Researcher: So customers want to feel more connected to the brands in which they buy from. Participant: Exactly, and its how much does that extend into banking, which is what will be interesting about your questionnaires that you do. As it will highlight key issues about what consumers want from banks? As some institutes lend themselves so well to social media, and of course they want to, if it means connecting with the consumer on a more personal level. With banking its just getting that balance right between if customers want to talk to us through these channels we should absolutely be there! However on the other side, banking is a much more serious thing, its people money, so there’s a different tone about it. So I guess again its just thrown up, good challenges about how do we want to represent ourselves on social channels? As it’s a space where customers are in during their own free time, they’re speaking to their friends, how do banks fit into that, and speak to them in a way that still shows that their a trusting bank but also kind of shows that they are not so boring…. Researcher: … Giving the bank more of a personality almost? Participant: Yes that’s exactly it, so I would say positive overall (Laughs) Researcher: (Laughs) Excellent, so what are the most common social media platforms that Tesco Bank utilises?
96 Participant: Facebook is the main one, and especially for Tesco Bank, probably the main reason for that is because Tesco have one and we are a bank but we are a retail bank and therefore we do kind of take a steer after whatever group do. From an operational perspective, we use Twitter a lot; we get a lot of queries and complaints through that platform, so it is a great way for us to be able to communicate back to those customers. They are really the only two channels we are active on, those are the two big ones that started everything off. However I know there are a lot of question marks around the fact that people are now moving away, particularly the younger market… Researcher: Oh I think we’ve read the same article, did you see that study that Sky News posted about the fact that 80% of Facebook users will have left by 2017? Participant: Ah, yes I did (Laughs). So its almost like, because we haven’t got into it yet, do we really need to take a step back and go right our social strategy shouldn’t just be for Facebook or should we be covering all new emerging social media platforms and what kind of content and how do we want to use them. Researcher: I understand. For my researcher because there is so many social media platforms, I did need to sort of refine it a little bit. So I picked as you can see from your participate information sheet, Facebook, Twitter and LinkedIn, so that’s great that Tesco Bank are present on two of them. Participant: I suppose in a way, its not sad, but going down the Facebook and Twitter route, its almost becoming old and traditional. It’s almost as if banks are like ‘oh we can do this now’ and jumped on the band wagon, but its almost as if its moved on again. Researcher: Yes, it is very fast paced I think. There are always new platforms coming out, and now older generations are now joining the links of Facebook and Twitter, young adults are looking for something new constantly. Participant: (Laughs) Yes I know, I think any bank that can get it right and be ahead of the game and be in the places where their customers are, and maybe it is Facebook and Twitter but if it’s the likes of the younger generation they’re going for they need to be ahead of the game and know where people are moving to. Researcher: Absolutely! So is there any specific software that you utilise in order to monitor the brands image via social media? Participant: Yes we do. So at the moment, we use ‘Brand Watch’, which is a very well known big social media-monitoring tool, and we are constantly in that keeping an eye on what people are saying about us. We also have a tool that allows us to respond to customers, so you can do that through ‘Brand Watch’ but because Tesco group use a separate tool we go down that route also and that tool is called ‘Conversocial’. That is a tool that allows us to monitor any mentions of where people either use the twitter handle ‘@Tesco’ or any of the other affiliated ones for bank, and then we’re able to respond to customers via that tool, so that’s the only two that we use.
97 Researcher: So do you guys produce like a weekly report or an update, from the responses monitored via those tools? Participant: We do! So with the output of ‘Brand Watch’, we actually have a social media agency and they kind of run it for us, although we have access to it, and they provide us with a weekly summary of what has been going on, split by different products, so for example depending on who you are you might be interested in insurance vs. banking, and that’s circulated around the business, all the way up to executives and all the way down to employees working with that kind of thing on a daily basis. Researcher: That must be really helpful… Participant Well we’re trying to push it! We’re going to be sending out a monthly report to the senior executives, in the hope that we can get more interest from the higher levels that will hopefully get them to really take social media seriously, it terms of the insight they can gain from it or the way they could be improving their products or how operations should be working and that sort of thing. Researcher: How do you think the senior executives view social media? Do you think that its been viewed as something to watch, or has the company just signed onto it because everyone else is doing it? Participant: That’s a really good question. I would say the company aren’t still 100% bought into it, although there are certain areas of the senior executives that are getting more excited about it, obviously the senior marketing executive is getting more excited about it, but then there are other areas that are little bit more sceptical and are more worried about the implications of using it, the risks involved etc. So I think there’s still a little bit more work to be done with the senior executives, so I definitely think this report could help. Researcher: Yeah Absolutely! What do you think the biggest obstacle Tesco Bank faces when promoting themselves through social media? Participant: This is a very good question. Well I guess, like we do with any sort of marketing channel, we have to make sure that what we’re putting out via social media is factually correct, its gone through all the usual compliance bits and pieces we need to go through. Social media is quite difficult for us, as its usually space restrictive, and you can imagine with financial services, we have a huge amount of T&C’s (terms and conditions) so that can be a bit problematic. The other thing that’s posed quite a lot of issues recently, again its maybe not a banking issue, but banking will take it more seriously potentially, is that a lot of social media channels are going down much more targeted approaches when it comes to using Facebook or Twitter for advertising. So you can do a thing called ‘Custom Audiences’ on Facebook, so you can actually say that out of all the people on Facebook you want to target a specific audience, and that audience rather than it being based on your interest which is what traditional Facebook advertising used to work, you actually go these are the people I want to target, are they on Facebook, and if so, this is the message I want to send to them.
98 So there is a lot of things around data privacy, on the back of that as you can imagine, basically at the moment, lots of old data policies including the ones on Tesco Bank’s website and Tesco, when you opt into marketing you don’t opt into people using your data for online purposes, its only via email, SMS etc. Researcher: Yes I am aware of this from doing credit card applications over the phone when a new customer calls in, we should ask them if they can be contacted via social media or if there data can be used in that way… Participant: Absolutely, so you know exactly what I am talking about. So there’s a whole big question around do we need to update… bearing in mind that all these social media channels are coming in, we have the ability to really target our customers through them, through them and to serve them with relevant messages. You know should we be looking to update our data policies so that we can ask people if they are happy, and if they are then if we can use it for that. So that will be really key, I think anything like that going forward, because everything is moving online and social channels its going to be really important…. Researcher: …Yes absolutely! Especially with the likes of mobile banking for example? Participant: Exactly! Researcher: So have there been any specific instances where you can remember social media having a negative impact on the Tesco Bank brand, and if so how did you manage that? Participant: Yes, good question again! So there’s been nothing huge in the social media, which we’re very lucky about, and that’s probably because we haven’t done huge amounts in social media, so we haven’t exposed ourselves to that. However we obviously do still get complaints through social media and there have been in the past some very irate customers or even who have taken their story to the press, so then its been in there and then people have then tweeted about it. I think eh, one example (Laughs), which is probably the most high profile and it isn’t even that high profile is… Keith Chegwin? Researcher: I recognise the name, but can’t place his face? Participant: Well he’s like a D-list celebrity, but anyway he has a lot of followers on Twitter. He has car insurance with Tesco Bank, and basically there was something that didn’t go right, with a claim, I can’t fully remember but he ranted about us for quite a while. Which got the attention of the upper management (Laughs), to think right we need to sort this out, so it wasn’t anything massive but I think that is just a factor of we haven’t done that much on social media yet. We do try to mitigate if there is anybody really ranting, obviously we would do that with anybody but we have had a few people who have really went on and on and on. Researcher: So I know like a lot of companies employ like an immediate response so that if you are contacting them directly, the will always respond to you, do Tesco Bank employ something similar?
99 Participant: So the way that it works when we contact our customers is it goes through ‘Conversocial’ and there’s a team down in Cardiff that do the actual responding. So if its out of the hours of 9am-5pm, the customer will still get a holding response, which would read something like ‘Thank you for your tweet, Tesco Bank’s team will come back to you as soon as they can.’ So we do try to get back to our customer’s even if we’re not physically here and then it will get picked up when somebody is back in the office. Researcher: That’s very positive, as a lot of customers are using social media these days purely to get in touch with the brand. Participant: I suppose that’s maybe the other bit that bank’s struggle with compared to some other companies, its not as easy for us to just come back within minutes, because often we have to go away and investigate what the problem is and how things were handled and follow certain processes? Researcher: Yes I know exactly what you mean from my experience of working in the call centre in Tesco Bank, for example refunding interest, there are all these processes you need to follow and investigate before you can do that. Participant: Yes exactly, so you completely know where I am coming from (Laughs). So it is really good that we have a response team in place for that kind of thing, however the only thing that I would say we need to work on or think about is that currently we don’t have our own handle on Twitter. So there is a @TescoBankNews, which is technically the PR department, and it’s more for corporate responses rather than anything else. However if anything was to come through to them, it does get passed on to the team who respond, but you know its that question mark about we’re not shouting to the world at the moment that customers can get a response through Twitter, if they do come to us they will but that’s kind of a Phase two plan. Researcher: So you said that Tesco Bank don’t have their own separate handle on Twitter, is that something you are looking to bring in or are you happy to just run off the bank of Tesco retail’s twitter handle at the moment? Participant: At the moment it is working fine from using the retail handle, and I think that’s just because the people who have pro-actively wanted to get a an answer on Twitter have found it and have gone down that route. I think if we were to start promoting the fact that people can get help via Twitter, I think we would seriously have to consider our own handle because it just makes more sense I think? Researcher: Yes, keeps everything in the one place and easier to monitor? Participant: Exactly, cause you can imagine the amount of retail queries and concerns that come through on their own handle, for example ‘where is my online shopping order?’ etc. So it’s a question mark at the moment because there are huge amounts of resources required for something like that, but we want to be a forward facing bank so I think it is something we need to implement and with new products that we are bringing in, you know the bank is growing.
100 Researcher: Yes absolutely! So just on the flip side of that, are there any specific instances where you can remember social media having a positive impact on the Tesco Bank brand? Participant: Eh… I’m trying to think of like a really nice example of something big, because we do get customers coming back to us and will say thank you for things. I think there have been some quite nice ones around; we seem to do really well from an accessibility perspective. So we’ve had some really nice tweets from customers, who are deaf for example, who have complimented us on our services for example Mincom, and there’s various other bits and pieces on the site that make it really accessible for them. That’s then been ‘re-tweeted’ a number of times and other people have picked up on it and been like ‘oh that’s great news’, and then passed it on to future customers etc. So that’s been nice, there are lots of examples of people saying thank you, I don’t think there’s been anything… I guess we get positive reviews off the back of it… Researcher: … Yes I mean I guess that just comes with the fact that Tesco Bank are fairly new to social media, once you have established yourselves a bit more there will be more opportunities presented for you to promote yourself in a positive light. Participant: Well yes that’s exactly it, I mean I know we’re going in that direction cause I know we’ve just started, the PR department upstairs, the corporate communications people have just started a Website, a Facebook page and a Twitter handle for Tesco’s Bank community effort, cause we do huge amounts, and up to date we haven’t really talked about it and I think that’s really where you can get some great positive PR. So I hope we will see more coming, watch this space! Researcher: That’s a really good idea, and I’m sure we will! So not going into any specific numbers, but would you say that you are allocated a sufficient budget in order to manage Tesco Bank’s social media presence? Participant: For what we are doing right now, yes! If it needs to grow…then no! (Laughs) So it really depends on what direct it goes in, its pretty small scale at the moment, I mean ideally I think we would have our social media team if we were taking it seriously and obviously its kind of managed on the side, and I think most bank’s would probably have people dedicated to it and we don’t really, we kind of piggyback of the back of dot com (Tesco Retailer). It’s been fine to date, its manageable but I think when for example current accounts launch, then yeah there will be much more need for a social media team. Researcher: It’s really interesting because Tesco is such an established name, so I think a lot of people would just assume that Tesco Bank would have a full social media team, so it is really interesting to see how everyone is adapting in their own way to the phenomenon… Participant: Yes it really is! Researcher: So with that being said, do you feel that social media will continue to grow and be a permanent influence in day-to-day business life?
101 Participant: Oh, I think its here to stay! I think you picked up on a really good part earlier, when you talked about relationship marketing and that really is what social media helps you to do. I just think we’re moving away now so much from traditional marketing and media, and its all going towards kind of telling a story, and as you said building those relationships with brands and that’s how consumers are going to want to talk to people and will build up affiliation’s with companies going forwards… Researcher: … Well yes, it’s moving towards more of a brand monologue now, rather than a brand dialogue isn’t it? Brand’s aren’t just talking to the customer and telling them what they should be spending their money on… it’s a conversation. Participant: … it’s a conversation, yes exactly, it really is! And that’s how we’re going to bring in new customers and keep people loyal, it is going to be really key for that. So there’s absolutely a place, I don’t know if it will be with Facebook and Twitter and who knows what is around the corner in terms of social media but it will be some form of that definitely, going forwards. Researcher: I agree with you. So would you say you find it more or less difficult to monitor customers responses via social media in comparison to other channels? Participant: Well I’m a huge advocate of social media, I think it’s a brilliant way to get real time information on our customers and what they are thinking and what they are not happy about, it’s a great gage of sentiment. What I will say is that you have to take it with a pinch of salt, because you get the people who rant and the people who love you, it’s a temperature check and I think it highlights the things that need to be improved more than anything, and if you get enough volume through of those people who are saying the same thing, then that should tell you that your product or whatever the issue is, needs to improved. So I think its much easier as well for people to just jump on social media and tell you what they are thinking, rather than having to fill in a form or do a survey etc. Researcher: Yes absolutely, your colleague pointed out earlier that with the likes of a survey its set questions and you’re very much restricted to the kind of information you allow the customer to provide, where as social media its an open space, and you can give back to the company genuine feelings and concerns. Participant: … yeah and you can go back and ask more, and really get a conversation going, it’s much more fluid through social media, than with traditional methods. Researcher: Yes that’s very true, so would you say you regularly liaise with different departments regarding social media? Participant: Hmm… more and more now yes, and I think that is a result of the weekly report we send out, because that just got peoples attention in terms of realising that people are talking about us on social channels. So various departments after sending that out will come back to us, and ask various questions about ‘what happened to that tweet with our product’ etc., or what are you doing about this. We also use the credit card report as part of the ‘TCF’ (Treating Customer’s Fairly) monthly forum, so it’s nice that its being fed into that in terms of how much negativity are we seeing coming through on credit cards, month on month, is it going down? And if it is why is the
102 negativity going down etc., so that sort of thing! So more and more people are becoming interested! Researcher: So sending that weekly report out has really benefited the business in regards to getting different departments involved with the social media aspect? Participant: Yeah absolutely, it could be much better though! Researcher: Great! So in your opinion what are the most useful and least useful aspects of social media, it can be in a general perspective or a banking perspective? Participant: (Coughs)… So most useful and least useful aspects of social media... Eh... so I would say most useful if we’re able to with the way the data privacy, is going to be the way we can target exactly who we want to target with a really relevant message. I think now people see so many adverts, thousands a day… Researcher: … they are almost immune to it? Participant: Yes they don’t see it! So if you can target and be really relevant to people and give them what they want, in an ad in marketing, then I think that’s the way forwa…rd… (Coughs)… Sorry! Researcher: No problem! Participant: I think that’s really important, so it terms of least useful, hmm… I suppose, its not that it’s least useful, it just causes the most problems is just the fact that customers can rant and can quite easily damage the reputation of a brand and it might not even be correct. But they have a voice, which is brilliant! But sometimes, it might not be correct, and I its just having to manage and control that, and be aware of it and have things in place to be able to deal with that. So it’s not that it’s not useful, it is, cause we want customers to be telling us what’s wrong, but if there was something that got out of control or wasn’t correct and was damaging the brand, I suppose that’s quite difficult to manage. Researcher: Definitely! Especially because there are SO many people on social media… Participant: Exactly… Researcher: … its almost hard to keep in contained? Participant: … yes exactly! Researcher: So just to finish off, is there anything else you would like to add in regards to the social media phenomenon and how it has effected the way companies promote and manage their brand? Participant: I think just in general, I mean I’m on social media and I think its just allowed brands, I think its lovely, I think its allowed them to have a human conversation with people, its actually made me warm to brands a lot more. I mean not all brands are doing it right, and I think that’s where you’ve got to be really careful
103 with that, and I think Tesco Bank have to be really careful with that being a dry banking industry. But certainly I just think if companies can do it right, and they can give be content that I’m interested in and that I want to share, and that sort of thing and I’m all for it! And I think the more companies that can do that the better, and build relationships with their customers and really understand what their customers want; I think it can only be a good thing. So I’m excited about it! Researcher: Excellent! Well thank you again so much for participating, I already spoke to your colleague about sending a copy of the final dissertation when its completed for both of you to have a look at if you’d like? Participant: Oh yes absolutely! I will email you the full address to send it to? Researcher: Yes that’s perfect! END OF INTERVIEW
104 Appendix E: Brand Loyalty Brand Awareness Relationship marketing Immediate insight Effective Communication Negativity via social media Compliance issues Unity amongst departments Appendix F: (Loyalty Manager) Only Participant Responses Rise of social media over the last five years is phenomenal. Seeing companies starting to use social media in a really positive way, for example viral campaigns. That company’s wouldn’t have traditionally been able to deliver. Banking perspective it’s slightly more difficult. Bank isn’t necessarily a brand customers choose to interact with, nor is it thought about in a positive fashion. It makes it difficult for us to determine a social media strategy. Social media is difficult in the sense of striking a balance, because Tesco Bank is a retail bank. There are perceptions of financial services and Tesco to compete with unfortunately. Customer perspective they can interact with that business, from a business perspective brings us closer to the customer, can open up a negative connotation. Regularly reporting comes from Facebook and Twitter, weekly report produced which shows mentions across a whole range of topics, positive, negative or neutral responses. Social Media gives loyalty scheme a more immediate insight, which takes a lot longer with traditional marketing campaigns. We get to see that instant reaction, sometimes that’s because we’re driving customers to actively engage with us socially. Some proactively respond to what they perceive as a ‘kind gesture’. Pet Birthdays; send pet a card with a voucher, if they have pet insurance with us. Most of the work we do is quite functional and hard to get that sort of emotional engagement - which is important. So the pet birthdays gives us the opportunity to do so. We’ve got a hashtag for it “#tescopetbirthdays’, seen a really good response on social media, with customers sharing or taking pictures of what they’ve bought with the voucher.
105 Brings together loyalty scheme with the main business, social media gives that instant reaction, as on a weekly basis we’re able to see the response we’re getting. Have had negative responses for instance if the pet has died. From a business perspective helps us further engage with pet category, they provide funding, and they’re seeing the customer response and that kind of engagement. Social media can play a role in not just brand communication, but over all bringing the business together. Took all reasonable steps to ensure our data is up to date, but a lag time existences in a pet has died, for us to get that data, in which time the card could have already been sent. Measure that risk, it’s so small, don’t expect it to be an issue. Customers have taken to Facebook/Twitter and ranted negatively, and missed sentiment almost. From a campaign management perspective not really much more we can do, as we’ve thought about exceptions. In Terms of responding to the customer, Tesco Bank do quite well in that area to give at least a generic response or acknowledgement. It’s all about bringing customer and business closer together. Loyalty is driven by engagement, so if we engage with customers in the right way and talk to them in a way that’s meaningful and reward them in a genuine way, then that brings it full circle back to loyalty. Social media can help to give us a measure of that. For example, a few of the handles such as Tesco Mobile Customer service were interacting with each other, and that conversation was then shared on Facebook repeatedly, and that starts to drive that ‘buzz’. Consumers might have a perception of Tesco or Tesco Bank being a bit dull as it’s a bank or whatever. Or you may have not an awareness of us at all, so by showing a slightly more human side that helps massively with brand. What our campaigns help to do is create ‘advocacy’ and we can’t buy that kind of exposure so it’s valued by the brand. ‘Love Loyals’ campaign included sending gifts to customers who are genuinely more loyal to Tesco. Car insurance for example, sent customers de-icer voucher and a scraper through their door with a car saying ‘Just for you’. Social media allowed us to see the thankfulness and responses from customers. Little kind intentions count. Equally with credit card customers we offered them either champagne or chocolate just as a thank you for choosing to bank with us. Social media is often used as a ‘boast’ or a ‘look what I got’, we’re not doing it for that reason, just for the simple thank you, but it’s almost an associated benefit.
106 In an ideal world, someone will post it on Facebook what they’ve got, one of their friends or followers asks were they got it from, they say I got it for being a Tesco customer, and that person then looks into becoming a customer. Social media will still be a prominent part in business in the future, although it may be in a different form. For us as a bank it’s about how we develop a strategy to work with that. Hasn’t had one in place, due to us being ‘risk adverse’, so don’t want to open ourselves up to that, without being clear how we manage and use it. In the future want to be able to send out loyalty offers through an app rather than email, to keep up to date. West jet airlines did a campaign where they asked people boarding their fight what they wanted for Christmas and it was waiting in baggage claim for them when they got off the flight. So taking that kind of idea, of asking a question and finding a way to deliver it them, taking the positive out that idea is something we would like to do in the future. Vodaphone also did a flash mob, it concentrated on people who were actually filming it and they marketed it as Vodaphone gives you the power to share that moment, so those kinds of connections are great. Immediacy is a key thing in terms of what our customers can take out of it. Liaising with the social media manager is not something we do regularly, but we are starting to move out of that sphere. With the launch of our current accounts, it’s a great way to get the message out to a really wide base, really quickly, and gives us the opportunity to do it in a different style. Current accounts are the first time we’ve looked at actively using social media as part of a campaign. I think we will start to see it as a bigger part of Tesco Bank’s marketing plan. There is a lack of awareness from a customer perspective that we capture what they say. Depending on previous settings we will get a verbatim quote of what that person has said. The words ‘Tesco Bank’ trigger it and it’s all noted in our weekly reports. Helps in a more positive fashion, as you get a truer response when you’re posting on social media. This is because you’re not doing it with a question in mind. Unlike questionnaires for examples where there is set boundaries. The responses are truer and possibly harsher which is what the business needs to see. You do get responses in the heat of the moment, and for that reason we need to take some of the negative responses with a pinch of salt. It’s a snapshot reaction, of an otherwise very happy customer. We need to concentrate on showing our customers we are willing to engage with them and respond to those kinds of criticisms, which so far Tesco Bank seem to be doing a good job with.
107 Certainly with a loyalty perspective it’s a future platform, over the next 6-9 months we hope to really come to grips with it. Appendix F: (Social Media Manager) Only participant respondents From a banking perspective social media has thrown up a lot of questions and concerns. It gives businesses another channel in which they can potentially market and talk to their customers through. However what channels to use, what are the implications of entering those channels from an operational and compliance perspective, and areas around risk and legal are just some of the concerns. Tesco bank have been quite slow in getting into social media, a lot of thought needs to go into what your presence looks like on social media and what you want it to be for. It’s got the banking industry to be a bit more forward facing and a bit more innovative. Without it we would have continued the same route we have always gone down. There’s a huge stigma around the fact nobody knows where your moneys going with banks, what is being done with it and that ultimately nobody trusts banks. On social media you have to be much more transparent, you have to be open and honest and be able to respond to customers quickly so its got banks thinking about how they need to portray themselves as a brand. They can’t be a closed wall, as customers don’t trust them, and that’s not going to earn their trust. They are starting to think about connecting on a more personal level. Some institutes use social media as a means of connecting with the customer on a more personal level. With banking its getting that balance right, of if customers want to talk to use through these channels, we should absolutely be on there. As its banking and a more serious thing, it’s a different tone, so we need to figure out how banks fit into the whole sphere of social media and speak to customers in a way that still shows we’re a trusting bank but we’re not so boring… Facebook is the main channel we use, because Tesco the retailer have one, and we’re a retail bank so we take direction from whatever group do. From an operational perspective we use twitter a lot, we get a lot of queries and complaints through that platform and it’s a great way of being able to communicate with customers. As we haven’t got into social media yet, we do really need to think about our social strategy. We need to think about what kind of content we want to put on these platforms and how we want to use them.
108 Facebook and Twitter are becoming quite traditional now, and its as if banks are now realising that they can get involved in this. With so many new platforms popping up, we need to keep an eye on where people are moving to and incorporate that into our social media strategy. We use two types of software, ‘Brand Watch’ that is a well-known social media- monitoring tool, use it to keep an eye on what people are saying about us, and can be used to respond to customers. However we use a tool called ‘Conversocial’ because Tesco group use it, and it allows us to monitor any mentions where people use the twitter handle ‘@Tesco’ or any of the affiliated ones for bank and we’re able to respond to them via that tool. The social media agency that run ‘Brand Watch’ for us produces a weekly summary of what’s been going on, and that’s circulated around the business. We’re also going to be sending out a monthly report to the senior executives, to get more interest from the higher levels and get them to really take social media seriously, in terms of the insight they can gain or the way they could improve products and operations. The company aren’t still 100% bought into it, there executives for example marketing who are excited about it, but there are other areas that are a little bit more sceptical and are more worried about the implications of using it and the risks involved. We have to make sure what we’re putting on social media is factually correct, has gone through compliance checks. Difficult for us as social media is usually space restrictive and financial services have a lot of terms and conditions, so it can be problematic. Social media channels are starting to go down more targeted approaches, on Facebook you can do ‘custom audiences’, where you can say the type of people you want to target, are they on Facebook and if they are this is what you want to tell them. However data privacy policies need to be updated, as it doesn’t allow for your information to be used in this way at the moment. There’s a whole big question around do we need to update this, and we can ask people if they are happy and if they are we can use it in that way. Not many huge problems in regards to social media as we’re quite new to it, we have had a few issues with people ranting, and a minor celebrity who had a lot of twitter followers was ranting, caught the attention of senior executives who had to handle it. We do try to mitigate if there is anybody really ranting. Our team in Cardiff do the responding via ‘Conversocial’. If its out of office hours, customers get a holding response and then we get back to them when someone’s available. Due to the nature of our business, its not as easy for us to get back to a customer within minutes as it often needs to be investigated and see how things were handled and did it follow the correct processes etc.
109 We don’t currently have our own handle on Twitter, due to the fact we don’t publicise that you can get a response through Twitter at the moment. However if we did do this, we would seriously need to think about getting our own handle, to separate us from the retail side of things. Huge amounts of resources are required for that though, but in order to be a forward facing banking its something we will need to implement with new products and the bank growing etc. We seem to do well from an accessibility perspective; we get a lot of positive feedback about services such as Minicom for deaf customers for example. Recently the PR department of Tesco Bank has launched their own twitter handle, Facebook page etc. for promoting the community effort that we are involved in, as it is quite substantial. The budget we are allocated at the moment is fine for what we’re doing right now, but if it needs to grow then we would need a larger budget. It really depends on what direction social media within the bank goes in. Most banks probably have people dedicated to it, and we don’t have that as we sort of piggyback of the back of Tesco retail. With the introduction of current accounts there will be more need for a social media team. I think social media is here to stay; it’s all about relationship marketing. I think we’re moving away from traditional marketing and media and its all going towards building relationships with brands, we want people to talk and build up affiliations with our brand going forwards… It’s a conversation, that’s how we are going to bring people in and keep them loyal, by involving them. I am a huge advocate of social media, it allows companies to get real time information and it’s a great way to gage sentiment. It’s a temperature check in regards to customer’s feelings/opinions and it highlights things that need to be improved. It allows customers to express opinions and feelings, and is much more fluid if done that way rather than traditional methods such as questionnaires. Due to the weekly report we send out, we’re starting to interact with other departments more often, as they are following up things in the report to see what the outcome is. So more people are becoming interested. Most useful will be if we can get the data privacy policies sorted, is the ability to target customers, however social media can also quite easily cause damage to the reputation of a brand, and I suppose be quite difficult to manage if it gets out of hand.
110 Its allowed brands to have a more human side and conversation with people, and has actually made me personally warm to brands a lot more. Tesco bank have to be really careful being in a dry banking industry, however we want to build relationships and really understand our customers.
111 Appendix G: Dear Participant, Please find below the link for an online survey on exploring the rise of the social media phenomenon and investigating its role and impact in developing and nurturing brand communications, a study of Tesco Bank. https://www.quicksurveys.com/s/We97R The survey consists of 13 questions and should take no longer than 5-10 minutes. All answers remain anonymous. The purpose of the questionnaire is to analyse the influence social media has had from a consumer perspective on brand communication and whether or not it is viewed as a positive change. If you are happy to proceed, please click the above link. Thank you for your participation, If you require any further information, please do not hesitate to contact me. Yours Sincerely, Yasmin Love McKeag
112 Appendix H: Question one Question Two and Three
113 Question Four and Five Question Six
114 Question Seven and Eight Question Nine and Ten
115 Question Eleven and Twelve Question Thirteen
116 Appendix I: Positive Comments 1. “Allows them to promote to a much larger audience. Has possibly made companies advertise in new styles and with different ideas/goals allowing them to grow as a company. Largely depends on what type of company, consumer and product that is in question.” 2. “As most people now use social media, I feel that it allows companies to market and position themselves on a more regular basis. For example, they could post 5 pictures in a day or they could try fitting those ideas into a 15 second advert that their desired target market may miss. Facebook's business model is now based on selling advert space that will only appear on a targeted niche (the niche being specified by the business/brand).” 3. “Companies are now perceived to be closer to their customers and therefore have to be seen to be quicker to respond to customers and market conditions.” 4. “Enhanced, easy and free marketing” 5. “Feedback and public perception is more readily available via social media. Promoting and maintaining a brand has become more important as a result of this.” 6. “From my experience the most effective way for companies to promote there brand is not through advertising through status's but in replying to customers online and showing they are making the effort and have a light- hearted side as well as business side. Although some companies like paddy power have been seen to make customers annoyed by their jokes and portray a bad image because of this.” 7. “I believe that Social Media has made companies more reactive to their customers. They no longer can avoid issues or complaints and must deal with them in a timely manner. It also give them the ability to introduce new ideas and special promotions in a quick and effective manner.” 8. “I believe that social media has made many companies rethink the way they communicate with consumers. For example I follow innocent drinks on Facebook and they often post funny/cute pictures which means you are more likely to tolerate their brands presence if they then use social media for promotion of their products.”
117 9. “I feel its had a positive impact as consumers can gain more information on a product / experience with a merchant etc., before going ahead with a purchase encourages good feedback for retailers as well as negative.” 10. “I feel social media is a great way for companies to promote themselves and their products they sell as it a fast and cost effective way to advertise.” 11. “I feel social media is the best way to target younger consumers such as myself as I am regularly on Facebook and get irritated with email newsletters. Using social networking to promote brands is the way forward e.g. clothes shops uploading photos of new arrivals. This is a quicker way to find out about new products rather than checking your inbox and reading an email which has to redirect you to a website for more information.” 12. “I feel that brands are being made more accountable through social media. For example, any poor products or human rights abuses are brought into the spotlight. It has also made advertising more interactive.” 13. “I feel that companies who use social media is good, it keeps them up with the times and allows them to connect to there customers.” 14. “I feel that social media promotion is essential in this day and age keeping the consumer up to date with the current trends, ease of use etc. This form of promotion saves me personally a lot of time and with little effort, from the comfort of my home. I still feel that the personal touch is also essential especially for the older generation who like to be made to feel that they are not just an account number but are valued as a customer.” 15. “I have noticed that if i am on a website looking at a product, it will more often than not appear on my news feed on Facebook for the days after. An example of this would be all-saints, if I am looking at their clothes online, the following days my news feed will have an advert showing me the shirt that i have looked at and also similar items. It is allowing these brands to have a second shot at attempting to get me to purchase a product I have shown interest in. And I have made purchases because of this "kind" reminder.” 16. “I personally feel without social media I wouldn't feel as inclined to purchase from them, seeing products come in within the new season is more tempting to buy it” 17. “I think it has a positive impact as it gets promoted to more people on a daily basis.”
118 18. “I think it's had a positive outcome because it's an easier way to find out information about the brand and have your personal questions answered.” 19. “I think it’s had a massive impact as brands are now very aware of social media and what is put on there. I think they should focus on this but should find the correct balance as this can take away from a customer service aspect.” 20. “I think that product development has been majorly impacted by the integration of social media, it means that companies are able to get real time feedback about their brand and products. It has also helped to identify brands and companies which have failed in the eyes of the consumer because social media has given disgruntled or unhappy customer a platform to air their views to a greater audience.” 21. “I think that they have now become much more aware as to how a negative comment can affect their brand and its subsequent sales. But too much is given away for so called celebrity endorsements. Creates a negative affect and make me question even purchasing the brand when they do this constantly.” 22. “It gives companies the chance to reach a wider audience at a much faster pace than before.” 23. “It gives them a wider audience and platform to interact with customers.” 24. “It has allowed for companies to give themselves a more of a human side, a personality to the brand almost. By doing so, it allows them to connect with their consumers effectively.” 25. “It has encouraged more promotion and competition.” 26. “It has given companies the opportunity to really connect with their consumers on a more personal level, and opened up a new gateway for promotions etc.” 27. “It has made it easier for companies to market to their target audience. It is also an easy way to involve people in competitions and giveaways.” 28. “It has opened a new gateway in customer interaction which was not available before which can only be positive, and gives the chance to gain much needed feedback bringing themselves closer to their consumers.”
119 29. “It has promoted lot of companies and made them more well known.” 30. “It is the easiest way to communicate with everyone.” 31. “It makes the brand much more personable to consumers. A level of trust is created, as social media sites are a norm and part of daily life. If a company did not have Facebook or Twitter, etc., then I would question if they where current and therefore makes it seem they are unwilling to be accessible to their customers. Also I would question if the brand were reliable and reputable. However if a company only works from Facebook or twitter and doesn't have a main web page it makes me question their stability and longevity.” 32. “It's a means of allowing brands to constantly keep people updated on new trends/products and promotions. Companies like Nike and Adidas are great at involving customers into the brand through videos with the latest sports stars and engaging in conversation with followers.” 33. “It’s been largely positive for consumers. They can follow their favourite brands and see what there friends like. Also there seems to a follow page on Facebook about everything.” 34. “It’s forced them to use them. Being at the cutting edge of world communications offers a global platform for promoting a brand.” 35. “Its given companies a new way to advertise their brand cheaply and to the widest possible range of people so I think it is a great asset to companies, especially the bigger ones.” 36. Promoting through social media is highly beneficial to the brand. Instant and easy way to display the brands message.” 37. “Social media has affected companies in an effective way as it is staying current with times and I personally use social media on a daily basis which in effect means I’m constantly updated as to what companies are promoting or offering.” 38. “Social media has given many brands the ability to effectively target specific customer markets. It also gives the customer a less formal way to communicate with the brand in a very public way this forces the company to provide a level of customer service if they wish to maintain a good image on social media. Social media is a powerful marketing tool for companies but it can be a two way street as a dissatisfied customer can easily ruin a companies reputation.”
120 39. “The customer has a much better chance to let the company know his own opinion - and can share this with others. Furthermore the customer also is able to read about other customers opinion and experiences.” 40. “The vast majority of large organisations, particularly those that are consumer driven have presence on social media websites. Considering the broad range of individuals that use social media, specifically the varying ages and cultures, it allows websites such as Facebook and Twitter to focus their advertising and promotional techniques to specific character groups. Twitter in particular operates a general policy whereby a user can specifically chose the companies/brands that they wish to follow and this allows the organisation to develop specific promotional techniques based on the desires of its customers. Having used social media sites for some years there has been a boost in the number of advertisements visible on my homepage which can often prove annoying having to cipher through advertisements to view posts from friends and family but given the potential profitability and growth capabilities that social media websites provide it is understandable.” 41. “They can interact with consumers more effectively.” 42. “They definitely need to take more of an active role. With people expecting instant answers and even if they don't receive an answer posts can't be shared in minutes and go worldwide which the organisation would need to do damage limitation as it could affect the brand.” 43. “They seem to be more responsive and quick to sort problems that gain a lot of attention on social media.” 44. “Use it as a way of trying to break communication barriers to consumers.” 45. “Very useful in promoting brands and products.” 46. “Very well - as it's a more personal touch. Also, as a business owner I can speak to clients directly and let them know what I'm doing.” 47. “Very well, it's a great way for them to reach a young generation who spend much more time using social media than watching adverts or reading adverts in papers.” Negative Comments 48. “It's a lot more in your face all the time, which sometimes can be annoying.”
121 49. “I feel promotion from any brands now a days is very disposable as its so easy to post as often as they like for free therefore some brands get the balance wrong and can almost harass you with there news. 50. “More often negative aspects come to light than positive, I.e. trending customer complaints” 51. “Now that social media is so popular, I feel that brands are over-advertised. This could have a negative impact upon the brand as shoving products down the customers throat as such might cause the customer to lose interest in the brand as they could come across as desperate. Although it may not be a social media as such the advertisement on YouTube is a perfect example of over doing it. People are forced to watch adverts before they can view the video and sometimes this can become an annoyance.” 52. “Promotions, responses to feedback and giveaways are always appreciated, but sometimes companies seem to remove and ignore any negative feedback customers give, and also having to like and share things to unlock content or offers can be annoying.” Neutral or Mixed Comments 53. “Everyone is now on social media, so they are very 'in your face' with there promotions, sometimes this can be annoying. But is also sometimes useful.” 54. “Companies using Branded market have a more targeted plan of individuals that want to know more about that product and brands, and its and good platform for this type if product displacement. On a negative point of view, Bank shouldn't get involved in social media because of the amount of internet scan keep it to online banking. It’s all about advertising...the marketing of a product or service...if we want to know more about something with have a lot more options open to us then social media. Maybe it’s my way of saying I don't want to be marketed…” 55. “I'm not quite sure how I feel about it all. In one way, I'm getting ads that are at least relevant to what I like. The flip side is that someone somewhere is monitoring what websites I go to/ accessing cookies/ browsing history/ whatever and pasting the relevant ad all over my wall. Feels like more of a breach of my privacy when that happens. Don't know if I actually answered the question there?” 56. “It gives them an easier way to target people but they take advantage of it.” 57. “It's set apart a lot of companies; ones who can and do use it as an effective tool, and those who don't or can't. It has to be used at least properly (or it
122 risks great reputational harm), or well if the company wishes to differentiate itself from others.” 58. “Positive that the company can advertise there brand to a wide audience and communicate directly with customers. However complaints can be made publicly rather than a private email or letter and this can be damaging to the brand.” 59. “Social media has given companies an easier way to promote as they can reach people all over the world very quickly. Managing social media could be difficult as negative comments posted by consumers are spread just as quickly as positive so the companies have to ensure its managed well.” 60. “Social media has made it relatively easy to communicate with people but the personal service is not there with social media.” 61. “Social media platform can be dual purpose tools. In some instances it can be used to get a positive review by paying users to give glorified reviews and on the other spectrum it can be used by disgruntled users to hijack the brand to negative territory or negative reviews.” 62. “Some companies that have used it to promote their beliefs and intentions are fine with me, one's that use it for prize give always and asking for likes bother me 63. “They can reach a far greater customer base with less cost and effort. One negative point relates to the 'spamming' effect, bank may appear like they are spamming if they are constantly bombarding social media with offers etc.” 64. “They can reach a larger target audience, however that being said they may open themselves up to more criticism and public scrutiny. It's a lot easier for consumers to see what people are saying about the brand.” 65. “They may be more image conscious that before due to the level of expose, whether good or bad, they get from this. Some companies seem to make more of an effort to provide 'good service' via social media, which may or may not be purely for publicity reasons.” 66. “Through the use of social media, products are promoted all the time right into peoples hand held device that they use almost every hour of every day, this means that its more direct. They also tend to advertise things that you have already searched for in your search engine. This kind of takes advantage of the consumer.”
123 Appendix J:

More Related Content

DOCX
Brand Journalism Dissertation
byCalvin Judd
 
DOCX
Gratification of new media in marketing a product
bysaurav kishor
 
PPTX
Influence of electronic word of mouth on Consumers Purchase Intention
byNasif Chowdhury
 
PDF
Impact of Brand Image and Service Quality on Consumer Purchase Intention: A S...
byMuhammad Arslan
 
PDF
Communications Strategy in the Era of Accountability
byDeola Kayode
 
DOCX
Enhancement of business via social media marketing
byMohamed Almalik
 
PDF
Effectiveness of online advertsiment on students in zambia
byMeshach Chindele
 
PPTX
Objectives, strategies and indicators for social media marketing
bySocial Media Research Centre | Twente University
 
Brand Journalism Dissertation
byCalvin Judd
 
Gratification of new media in marketing a product
bysaurav kishor
 
Influence of electronic word of mouth on Consumers Purchase Intention
byNasif Chowdhury
 
Impact of Brand Image and Service Quality on Consumer Purchase Intention: A S...
byMuhammad Arslan
 
Communications Strategy in the Era of Accountability
byDeola Kayode
 
Enhancement of business via social media marketing
byMohamed Almalik
 
Effectiveness of online advertsiment on students in zambia
byMeshach Chindele
 
Objectives, strategies and indicators for social media marketing
bySocial Media Research Centre | Twente University
 

What's hot

PDF
Sohn&kim(2012) a study of influecing factors for purchase intentions in socia...
bySohn Woong
 
PPTX
Poster ravi
byRavikumar Pinninti
 
PPTX
2011-2013 research plan
byTimothy Christy
 
PDF
Impact of Key Purchasing Determinants on Purchase Intention of Hybrid Vehicle...
byUniversity of Kelaniya
 
PDF
List of Best MBA Dissertation Topics
bymbathesis01
 
PDF
Current Research Questions in Word of Mouth Communication
byAlexander Rossmann
 
PDF
Social Media Briefing- FINAL
byAlexis Green
 
DOCX
CUSTOMER PERCEPTION TOWARDS SOCIAL MEDIA ADVERTISING
bySuyash Jain
 
PDF
Social Media Role in Improving Customer Relationship Management: An Empirical...
byjournal ijrtem
 
PDF
MK1003- Dissertation
byJamie Hutcheon
 
PDF
MBA Dissertation: "Investigation into Programmatic Marketing as a More Effici...
byIsman Tanuri
 
PDF
MBA Dissertation Sample on Project Management
byMBA Dissertation
 
PDF
JP Casaletto - Dissertation - MBA (Henley Business School)
byJohn P. Casaletto
 
PDF
New_Media_Conf_Ist_Gelisim_Unv_May_2015_Nurdilek_Dalziel
byNurdilek Hacıalioğlu Dalziel
 
PDF
IRJET- Social Media Marketing
byIRJET Journal
 
PDF
Co-Creation in Advertising and Marketing
bymtmoore22
 
PDF
MSc Dissertation Strategic Marketing UB14018993
byMarc van Hutten
 
DOCX
Journal_Internal conference_Achara
byWuttipong Pongsuwan
 
DOCX
Dissertation Proposal MBA
byMitun Dutta Mukut
 
DOCX
Dissertation on Social Media Advertising Practices in the Fast Fashion Indust...
byAmresh Pratap Yadav
 
Sohn&kim(2012) a study of influecing factors for purchase intentions in socia...
bySohn Woong
 
Poster ravi
byRavikumar Pinninti
 
2011-2013 research plan
byTimothy Christy
 
Impact of Key Purchasing Determinants on Purchase Intention of Hybrid Vehicle...
byUniversity of Kelaniya
 
List of Best MBA Dissertation Topics
bymbathesis01
 
Current Research Questions in Word of Mouth Communication
byAlexander Rossmann
 
Social Media Briefing- FINAL
byAlexis Green
 
CUSTOMER PERCEPTION TOWARDS SOCIAL MEDIA ADVERTISING
bySuyash Jain
 
Social Media Role in Improving Customer Relationship Management: An Empirical...
byjournal ijrtem
 
MK1003- Dissertation
byJamie Hutcheon
 
MBA Dissertation: "Investigation into Programmatic Marketing as a More Effici...
byIsman Tanuri
 
MBA Dissertation Sample on Project Management
byMBA Dissertation
 
JP Casaletto - Dissertation - MBA (Henley Business School)
byJohn P. Casaletto
 
New_Media_Conf_Ist_Gelisim_Unv_May_2015_Nurdilek_Dalziel
byNurdilek Hacıalioğlu Dalziel
 
IRJET- Social Media Marketing
byIRJET Journal
 
Co-Creation in Advertising and Marketing
bymtmoore22
 
MSc Dissertation Strategic Marketing UB14018993
byMarc van Hutten
 
Journal_Internal conference_Achara
byWuttipong Pongsuwan
 
Dissertation Proposal MBA
byMitun Dutta Mukut
 
Dissertation on Social Media Advertising Practices in the Fast Fashion Indust...
byAmresh Pratap Yadav
 

Similar to Yasmin Love McKeag - Dissertation

PDF
Social Media in the UK - MA Dissertation
byGiedrius Ivanauskas
 
PDF
The effect of social media communication on consumer perceptions of brands
byJohnRandom
 
PDF
Analyzing the effects of social media on the hospitality industry
byBookStoreLib
 
PDF
A Study Of User Preferences And Reasons For Using Popular Social Media Networ...
byRaquel Pellicier
 
PPT
Social Media, An Overview
bypaxmanb
 
DOCX
Measuring the impact of social media marketing campaign.docx
bybala krishna
 
PDF
A study of impact of social media on consumer behaviour
byChidanandaChidu5
 
PDF
Social Media Dissertation (Fin)
bypstileman
 
PDF
How has social media changed the relationship between brand and consumer?
byguest4ffd81
 
DOCX
Running head INFLUENCE OF SOCIAL MEDIA​1Influ.docx
bywlynn1
 
DOC
Social media's influence in purchase decisions
byAnup Nair
 
PDF
Whitepaper Social Consumer Bonding
byRobert Voogel
 
DOCX
marketing-researchm com
byvivekvs61
 
PDF
WHY HAVE CERTAIN BRANDS FAILED TO FULFIL THEIR POTENTIAL USE OF SOCIAL MEDIA?
byNick Robinson
 
PDF
Science Of Friendship
byalyshansmith
 
PDF
New Study: German Social Media Report 2012 / 2013
byDigitalization Think:Lab, University of Münster
 
DOCX
THE INFLUENCE OF SOCIAL NETWORK ON ONLINE PURCHASING BEHAVIOUR OF CONSUMERS
byRadhikaPatel78
 
DOC
Role of social media in pr
byAnkush Bajaj
 
PPT
Social media brief
byEkerette-Alvin Ikpe
 
PDF
Social Media Snapshots Report 2015
byMcCallum Layton
 
Social Media in the UK - MA Dissertation
byGiedrius Ivanauskas
 
The effect of social media communication on consumer perceptions of brands
byJohnRandom
 
Analyzing the effects of social media on the hospitality industry
byBookStoreLib
 
A Study Of User Preferences And Reasons For Using Popular Social Media Networ...
byRaquel Pellicier
 
Social Media, An Overview
bypaxmanb
 
Measuring the impact of social media marketing campaign.docx
bybala krishna
 
A study of impact of social media on consumer behaviour
byChidanandaChidu5
 
Social Media Dissertation (Fin)
bypstileman
 
How has social media changed the relationship between brand and consumer?
byguest4ffd81
 
Running head INFLUENCE OF SOCIAL MEDIA​1Influ.docx
bywlynn1
 
Social media's influence in purchase decisions
byAnup Nair
 
Whitepaper Social Consumer Bonding
byRobert Voogel
 
marketing-researchm com
byvivekvs61
 
WHY HAVE CERTAIN BRANDS FAILED TO FULFIL THEIR POTENTIAL USE OF SOCIAL MEDIA?
byNick Robinson
 
Science Of Friendship
byalyshansmith
 
New Study: German Social Media Report 2012 / 2013
byDigitalization Think:Lab, University of Münster
 
THE INFLUENCE OF SOCIAL NETWORK ON ONLINE PURCHASING BEHAVIOUR OF CONSUMERS
byRadhikaPatel78
 
Role of social media in pr
byAnkush Bajaj
 
Social media brief
byEkerette-Alvin Ikpe
 
Social Media Snapshots Report 2015
byMcCallum Layton
 

Yasmin Love McKeag - Dissertation

  • 1.
    ‘Exploring the riseof the social media phenomenon and investigating its role and impact in developing and nurturing brand communication. A study of Tesco Bank’ Yasmin Love McKeag S1017487 Submitted in part fulfillment of the requirements for BA (Hons) Business GLASGOW CALEDONIAN UNIVERSITY 10th of APRIL 2014
  • 2.
    2 ACKNOWLEDGEMENTS I wish toexpress gratitude and thanks to all of those who have assisted and advised during this project, with particular mention of: My dissertation supervisor, Ronnie Ballantyne, thank you for keeping me as calm as you have throughout this entire process - your advice and guidance has been instrumental in helping me succeed. Both marketing managers at Tesco Bank, without whom the study would not have been possible, thank you for taking time out of your schedules and keeping in contact with me throughout the entire study. My friends, family and boyfriend, thank you for listening to me obsess over this dissertation for the last few months; I appreciate all your love and support. This has not been submitted elsewhere in the fulfilment of the requirements of this or any other award, it is my own work and following normal academic conventions I have made due acknowledgement to the work of others. Word Count: 11,477 Signature_____________________________________________ Date ____________
  • 3.
    3 ABSTRACT Aim: To explorethe role of social media and its impact in developing and nurturing brand communication, specifically within Tesco Bank. The objectives are to identify key factors in the rise of social media (in particular Facebook, Twitter and LinkedIn), Explore the influence social media has within brand communication from an organisational and consumer perspective and to evaluate whether or not it has been viewed as a positive or negative change from both an organisational and consumer perspective. Method: This study used a mixed method approach consisting of 2 face-to-face interviews with employees at Tesco Bank and 100 web-based questionnaires distributed to consumers via email, in order to gain both an organisational and consumer perspective. Findings: The study showed that the impact of social media on brand communication has been significant as many consumers as well as organisations are actively using these platforms to communicate. However in Tesco Bank’s case due to the nature of their business, social media has presented them with obstacles, in regards to regulation and data protection policies. It was found that from a consumer perspective that social media as a method of brand communication was very positively accepted, however consumers were not too aware of it being used by the banking industry. Recommendations: Further research from a consumer perspective would be essential as there was very little empirical research available. As this study only took into consideration three social media platforms, a further look outwith ‘social networking sites’ would be recommended, and to study multiple industries in order to compare the impact social media has had on their brand communication.
  • 4.
    4 CONTENTS Acknowledgments Abstract Contents List of Figures ChapterOne: Introduction Introduction P8-10 Aims and Objectives P10-11 Chapter Two: Literature Review Introduction Background Brand Communication Influences From an Organisational Perspective Influences From a Consumer Perspective Conclusion Chapter Three: Methodology Research Paradigm and Approach Research Design Phase One - Qualitative data collection Phase Two - Quantitative data Limitations Ethical Standards Chapter Four: Results and Analysis Analysis Approach Results and Analysis of Interviews and Questionnaires Combined Explore the influence SM has within Brand Communication Evaluate whether or not the increase of SM is viewed as a positive change
  • 5.
    5 Conclusion Chapter Five: Conclusionand Recommendations Chapter Six: References In Text Bibliography Chapter Seven: Appendices Appendix A - Participant Information Sheet P76-77 Appendix B - Consent Forms P78-79 Appendix C - Interview Prompts P80-83 Appendix D - Interview Transcripts P84-101 Appendix E - Key Themes from Interviews P102 Appendix F - Transcript Summaries (Colour Coded) P102-108 Appendix G - Questionnaire Cover Letter P109 Appendix H - Screen Shots of Questionnaire P110 Appendix I - Additional Answers from Questionnaire P114-120 Appendix J - Example of Tesco Bank’s Weekly Social Media Report P121
  • 6.
    6 LIST OF FIGURES FigureOne: Facebook “Like” Icon P14 Figure Two: Twitter text box example P15 Figure Three: Facebook, Twitter and LinkedIn Promotional Icon examples P16 Figure Four: Bar Chart taken from Harvard Business Review (2010) P16 Figure Five: ‘Four P’s Example P19 Figure Six: Bar Chart taken from Keynote Report (2012) P22 Figure Seven: Pie Chart taken from Emarketer Report (2012) P23 Figure Eight: Bar Chart taken from Emarketer Report (2012) P24 Figure Nine: Pie Chart taken from Social Media Market industry Report (2013) P25 Figure Ten: Example of ‘Starbucks’ failed social media campaign P27 Figure Eleven: Table displaying key themes gathered from Tesco Bank Interviews P41 Figure Twelve: ‘What social media platforms are you active on?’ (Pie Chart) P42 Figure Thirteen: ‘Do you follow or like any brands via your social media platforms?’ (Pie Chart) P44 Figure Fourteen: ‘Do you feel banks should be present on social media?’ (Pie Chart) P45
  • 7.
    7 Figure Fifteen: ‘Wouldyou be less likely to buy from a brand if they were not seen to be actively responding to customers enquires/concerns via social media?’ (Pie Chart) P46 Figure Sixteen: ‘Have you ever used social media to communicate with your bank?’ (Pie Chart) P48 Figure Seventeen: ‘What do you expect from companies who actively promote their brand via social media?’ (Bar Chart) P50 Figure Eighteen: ‘In general how do you feel about brands using social media as a method of communication?’ (Bar Chart) P54 Figure Nineteen: Do you feel as a consumer, that social media gives you more of a voice, to highlight positive and negative experiences with brands you have purchased with?’ (Bar Chart) P56 Figure Twenty: ‘How often do you use social media?’ (Pie Chart) P58 Figure Twenty-one: ‘If your bank wished to target you with relevant offers and content via social media, would you give your permission for your information to be used in this way? ‘ (Pie Chart) P60
  • 8.
    8 CHAPTER 1: INTRODUCTION 1.0Introduction This research will focus on exploring the rise of the social media phenomenon and investigating its role and impact in developing and nurturing brand communication. Creating a reputable and recognisable brand has been a concept in which organisations have been actively aiming to achieve for decades, as it adds value to the organisation overall (Keller & Lehmann, 2004). The introduction of social media as a method of brand communication has caused controversy and debates from organisations as well as academics. Surprisingly there has been reluctance for the acceptance of new marketing methods, despite evidence that traditional methods of marketing may not necessarily have the highest perceived value by consumers (Dahlén et al, 2009). In today’s business world, it is very common to see organisations creating social media platforms, for example, “Facebook”, “Twitter” and “LinkedIn” accounts in order to stay relevant amongst their competitors and reinforce bonds with their customers (Mitic & Kapoulous, 2012). Due to the multitude of industries that social media has managed to influence, as a way to focus the research more effectively, the response to social media and the perception of it as a brand communication tool will be looked at more specifically from the perspective of retail bank, ‘Tesco Bank’. Exploring social media and its impact on developing and nurturing brand communication, through the financial services presents the possibility of uncovering interesting insights. This is because, currently the
  • 9.
    9 banking industry isviewed as delicate and vulnerable due to the economic climate, coupled with this there are extensive regulatory and legal policies in place in order to protect consumers, which in turn present their own obstacles. (Chikandiwa et al, 2013). However even with potentially problematic obstacles such as these, there is still a level of willingness for organisations to integrate social media into their business plan. Bernhardt et al (2012, p132) explains that the ‘interactive nature’ and ‘place-based features’ of social media channels, is allowing organisations to interact with their consumers through conversations and enabling them to engage with their audiences like never before. With consumers now looking to build relationships with the brands in which they purchase from, marketers see a shift in paradigm, and the move away from traditional transactional marketing (Ajio, 1996). With that being said, many businesses have rushed into the social media race without first having a proper strategic plan in place, which would outline their approach of its use within brand communication (Harvard Business Review, 2010). From this they have unfortunately experienced the negative repercussions of their careless actions. It seems to have been forgotten that even with marketer’s attempts to control the social web, its soul purpose was to connect individuals and create a collective conversation, not to sell branded products. (Schultz & Peltier, 2013) Although there seem to be many conflicting views on the concept of social media from an organisational perspective and the perceived value of it as a marketing tool, there is little to no empirical evidence of this from a consumer perspective. Bruhn (2012) explains that due to the voice that social media now gives consumers; organisations themselves are now not the soul source of brand
  • 10.
    10 communication. Dye (2000)outlines that word of mouth communications is one of the most effective forms of marketing, and with that being said, the introduction of social media has now been revolutionised. This is due to the possible impact consumer’s opinions and views expressed on their social media platforms can have on the overall perception of brands. By gathering an understanding of the significance social media has from a consumer perspective it would effectively allow organisations to utilise social media in a more creative and operative way, thus benefiting consumers by giving them a more personal and inclusive buying experience. 1.1 Research Aim and Objectives The primary aim of this undergraduate research is to explore social media’s role in developing and nurturing brand communication, specifically Tesco Bank. By gathering information about this phenomenon from an organisational perspective through interviews, and consumer perspectives through surveys, it will allow for an inclusive look into the way in which social media is generally perceived within brand communication. In order to achieve this effectively, three main objectives set a pathway, which the dissertation will follow:  Identify key factors in the rise of Social Media (In particular: Facebook, Twitter and LinkedIn)  Explore the influence social media has within brand communications, from both a consumer and organisational perspective  Evaluate whether or not the increase of social media is viewed as a positive change from both consumers and organisations
  • 11.
    11 CHAPTER 2: LITERATUREREVIEW 2.1 Introduction In the past, organisations have taken to traditional forms of media such as Television and Radio, in order to communicate their brand to consumers. However consumers are now using social media not only to gather information about potential products and services they may buy, but also to communicate with the company that is selling to them. Furthermore they use social media to gain insight from customers who have already purchased with the company before. (Garretson, 2008) This shift in paradigm has resulted in companies having to learn to talk directly to their customers, instead of the traditional method of talking at them. (Mangold & Faulds, 2009) The purpose of this literature review is to explore the rise of the social media phenomenon by analysing its history and development and discovering how this has impacted brand communication. Social Media has been in existence since the mid 1990’s, with platforms such as ‘sixdegrees.com’ allowing users to create online profiles, and connect and communicate with other like-minded users. (Keynote, 2013) Social Media is multi faceted, in the fact that multiple platforms exist in the forms of social networking sites, blogs, forums etc. Over the last decade or so, with the increased popularity of social networking sites, companies are beginning to
  • 12.
    12 realise the potentialthese platforms hold in relation to brand communication. By having an active presence on these sites, companies are now utilising social media as an effective way of communicating with their customers, as well as gathering information that can be used not only to improve their products and services, but the overall perception of their brand. (Laroche et al, 2012) As Social Media as a brand communication tool is a fairly new topic of research, much of the discussion is focused on ‘social networking’ sites. (Correa et al, 2010) Due to a lack of empirical research within the topic, and time restrictions to carry out this research, three main platforms have been selected, Facebook, Twitter and LinkedIn, in order to focus the literature review more effectively. Social Media has completely revolutionised the concept of word-of-mouth communications, as Gillian (2007) explains, “Conventional marketing wisdom has long held that a dissatisfied customer tells ten people. But that is out of date. In the new age of social media, he or she has the tools to tell 10 million”. (P.7) Social networking sites, now allow users to share their views and opinions, with the whole world, as a result of this companies are now at the hands of the consumer, which emphasises how the shift in paradigm is affecting the way companies promote and manage their brand.
  • 13.
    13 2.2 Background To understandthe concept of what Social Media is, it is essential that two main fundamentals be explained, these are: ‘Web 2.0’ and ‘User-generated content’ (UGC). Web 2.0, which gained popularity in 2004 is a lead on from Web 1.0 that initially allowed users to simply view webpages. Web 2.0 however “ is a platform in which software and content are not produced and published by individual companies and people, but are produced and developed by different participants in a continuous and collaborative manner.”(Laroche et al, 2012,p.1756) UGC, which became more apparent in 2005, “comes from regular people who voluntarily contribute data, information or media that then appears before others in a useful or entertaining way, usually on the web”. (Krumm, 2008, p.10) Although it has been in existence prior to the creation of Web 2.0, there are a number of driving forces that have brought it to the forefront of research within this topic. For example, technological advancements such as high-speed broadband, economic drivers such as the increased availability of tools to create UGC, and social drivers, like the new generation of ‘digital natives’ who have a substantial amount of knowledge in regards to technology. (Kaplan & Haeinlein, 2010) These combined factors have allowed users to share thoughts and ideas publically at the touch of a button. Social networks are ‘an online place where a user can create a profile and build a personal network that connects him or her to other users.’ (Lenhart & Madden,
  • 14.
    14 2006 p.1) Theybegan to increase in popularity in 2004 with the creation of ‘Facebook’. It is now possibly the most popular social networking site in existence with 874 million active monthly users. (Official Facebook Website, 2013) The most distinguishing feature of the site, their popular ‘like’ button was introduced in 2009. Figure 1 Source: Official Facebook Website (2014) This effectively allows users to publically support content that is uploaded to the site by allowing them to ‘like’ the post whether it be an article, blog post, photograph etc. ‘Twitter’, a micro blogging website was created in 2007 is now the second most popular social networking site. Currently companies who are choosing to engage in SM usually have a strong presence on both Facebook and Twitter. At the moment, there are 230+ million monthly active users, with over 500 million posts known as ‘tweets’ being sent per day. (Twitter Official Website, 2013) The most distinguishing feature of Twitter is the fact that posts are limited to 140 characters, rather than Facebook, which is limited to 3000 characters.
  • 15.
    15 Figure Two Source: OfficialTwitter Website (2013) This means that people using twitter have a lot less word count to get their point across, which from its popularity would seem to appeal to many people. In 2003, ‘LinkedIn’ was born. As it stands now, it is the largest professional networking site in the world, with over 259 million active users across 200 countries. (LinkedIn Official Website, 2013) It allows both established professionals and students to connect with each other, and by doing so opens up a new gateway for employment. Due to the high volume of users, many companies are now displaying all three icons for these social media platforms, through adverts and packaging, to encourage the customer to connect with them on a more personal level.
  • 16.
    16 Figure Three Source: http://www.webexpand.co.uk/social-media.htm(2013) Harvard conducted a study (See figure four) that showed that 71% of businesses had adopted social media as communication tool (Harvard Business Review, 2010). It is clear to see the potential these social networking sites have in regards to the amount of people that can be reached, and the possibilities in regards to brand communication through these sites would appear to be positive. Figure Four Source: Harvard Business Review (2010)
  • 17.
    17 2.3 Brand Communication Tounderstand the role social media is playing within brand communication in present day, it is essential to develop an understanding in the history of brand communication. In the past traditional marketing adopted a ‘tell and sell’ model, in which consumers were talked at, persuaded and reminded of what they should be purchasing. However there is now a shift in paradigm as consumers are developing more of their own voice and have more choice within the market (Grönroos, 1997). From this we now see that consumers are now being seduced rather than persuaded to purchase branded products. Companies now have to concentrate not only on making a profit, but also on developing relationships with consumers, in order to satisfy their needs effectively (Kotler & Armstrong, 2010). Branding has become a top priority for organisations over the past decade, due to ‘the growing realisation that brands are one of the most valuable intangible assets that firms have’ (Keller & Lehmann, 2004). Brand communication has become an important factor in relaying the brand image to a consumer via various media outlets, in order to entice them to buy from said brand, rather than their competitors. The Handbook of Marketing (2002, p.153) in which Keller explains ‘brand equity’, in conjunction with studies undertake by Akaer (1991), defines it by four categories of brand assets. These are brand awareness,
  • 18.
    18 perceived quality, brandassociations and brand loyalty. Keller (1993 p.2) explains further that ‘consumer-based brand equity can be defined as ‘the differential effect of brand knowledge on consumer response to the marketing of the brand’. All of these aspects are important to building a successful brand, and should be considered in regards to communicating the brand to consumers effectively. With the increase of globalisation, companies now find themselves being faced with the issue of competing on a global as well as local scale. (Levitt, 1983) As competition is now becoming so fierce it is essential that brands set themselves apart from each other, and establish a unique brand personality. By creating a brand personality consumers find the brand more relatable and therefore can connect on a more personal level. (Akaer, 1997) Due to the increased focus on branding within present day, ‘brand loyalty’ has become another focus in which organisations strive to achieve. By retaining existing customers it requires less marketing resources that it would to attract new ones, so by creating brand advocacy, it benefits the firms in multiple ways (Knox & Walker, 2010). Along with this comes the introduction of: Relationship marketing, which can be referred to as the changing market paradigm. (Ajio, 1996) Companies are now faced with the challenge of developing a relationship with their consumers, in order to remain competitive within the present day’s saturated market. Weitz and Jap (1995, p.5) explains that “ The growing interest in relationship marketing suggests a shift in the nature of general marketplace transactions from discrete to relational exchanges - from exchanges between parties with no
  • 19.
    19 past history andno future to exchanges between parties who have an exchange history and plans for future interactions.” It is evident to see that this marketing approach differs from the traditional method of transactional marketing, which is outl ine d in mo dels suc h as the Four P’s (Nickel & Woods, 1997). Figure Five Source: MBA Lectures Website (2013)
  • 20.
    20 The Four P’stakes a more product-orientated route whereas relationship marketing takes a more customer-orientated route (Grönroos, 1997). Although viewed as a positive alternative by many due to the fact that it extends boundaries put in place by transactional marketing, there are some scholars who disagree with the idea of relationship marketing. Petrof (1997) believes that the concept of relationship marketing has only created further confusion rather than clarify. This is agreeable to an extent, as relationship marketing may not be necessary for all business transactions, and may over complicate simple transactions by trying to build relationships that are not essential. Relationship marketing may not have universal application and because of this, organisations need to determine whether the potential long term benefits outweigh the slightly higher costs incurred to that of transactional marketing (Fuan & Nichollis, 2000). The key aspect to the new marketing paradigm of relationship marketing, is communicating with customers. It is essential that organisations recognise the need for creating a brand dialogue in which customers can become involved, rather than a brand monologue. (Mangold & Faulds, 2009) From this, brand involvement and loyalty can develop which hopefully would eventually lead to the creation of strong, positively charged relationships. (Anderson, 2005) Brand communities, especially since the creation of the World Wide Web, have now become prominent parts in the creation of brand citizenship and this continuous idea of connecting with consumers on a more personal level. (Muniz & Schau, 2002)
  • 21.
    21 2.4 Influences ofSocial Media (Organisational Perspective) Due to social media being a fairly new phenomenon, companies are still attempting to figure out if it is here to stay, or if over time it will lose its relevance within the business environment. When the Internet was first created, it was simply another place for marketers to advertise and for consumers to see their products. However with the increased popularity of social networking sites such as Facebook, Twitter and LinkedIn, organisations began to realise that consumers were taking the initiative and marketing between themselves (Strategic Direction, 2012). Companies are now beginning to realise the importance of having a presence within the world of social media, so much so that they are now recruiting employees specifically to manage this. For example, the New York Times hired their first Social Media manager in 2009 (Nolan, 2009). With over 10 million followers on Twitter, it is understandable why they felt the need to assign someone to manage brand communication through this media channel (New York Times Official Twitter, 2013). The implications that social media can have on their brand are becoming more apparent, and the realisation that social media cannot be ignored, more obvious. In a study conducted by advisory firm Grant Thorton they found that 71% of companies felt that social media posed a risk (Amy Gesenhues, 2013). Social media is being integrated into the business model more frequently within businesses marketing strategy as in 2011 a study conducted on 400 senior marketing managers (see figure six) across the UK and US, found that 69% were using Facebook, 57% were using Twitter and 48% were using LinkedIn. (Keynote, 2012,p.50) These
  • 22.
    22 highlight how widespread the relevance of social media is within today’s current business world. Figure Six Source: Social Media Marketing, Keynote Report (2012) As previously discussed communicating with consumers is a key part of creating a reputable brand, and one way to do this is through brand communities. With social media, online brand based communities are now flourishing, as users can now connect, share and promote from the comfort of their own homes. Relating back to relationship marketing, companies create these communities in order to develop meaningful relationships with customers, and are beginning to do so through social media networking outlets (De Vries et al, 2012). A great example of utilising social media to strength relationships with customers would be Royal Dutch Airline, ‘KLM’. In April 2010, Icelandic volcano, Eyjafjallajökull erupted causing airline flights to come to a stand still for a period of 6 days. Throughout
  • 23.
    23 this period, theircall centres were overloaded with the influx of customer service calls, which posed a threat to the reputation of their efficient customer support. Creatively however, they turned to social media and managed to respond to customers and provide regular updates via these platforms. They received a lot of public praise for their innovation and following this, the CEO Peter Hartman, announced they would invest heavily in developing an on-going social media strategy (Socialbakers Report, 2014). This shows the positive influence that can emerge from social media, if used correctly and efficiently. Leading on from this, it is evident that simply being present on these sites is not enough for the average consumer. In a study conducted by Emarketer, it found that 49.5% of consumers would be less likely to make a purchase with a brand that were not actively contributing and communicating effectively through their social media pages (Emarketer, 2012). Figure Seven
  • 24.
    24 Source: Emarketer Report(2012) This doesn’t mean that companies need to reply to every negative comment, as brand advocates who are loyal to the brand would hopefully begin to do that for them. However for genuine questions and concerns, 68.3% of consumers found it either very important or important, that this be a focus from the organisations perspective (Emarketer, 2012). Figure Eight Source: Emarketer Report (2012) The evidence available however does not fully justify the use of social media as a brand communication tool and as a result of this; companies are showing an unwillingness to part with their marketing budgets. A degree of uncertainty
  • 25.
    25 exists in regardsto allocating effort and large amounts of their budget towards social media spending. The reason being, there is a lack of proof in regards to return of investment (ROI) and a limited understanding between the various types of social media (Weinberg & Pehlivan, 2011). Social media marketing ‘often requires more qualitative measurement rather than quantitative metrics that are more familiar to online marketers’ (Fisher, 2009). In a report by Michael A. Steizner (2013), marketers were asked how much they were able to measure the return of investment on their social media activities, and only 26% agreed they were able to do so. Figure Nine Source: Social Media Marketing Industry Report (2013) This may explain some of the reluctance from a business perspective to invest large amounts of capital into social media marketing. However, although further
  • 26.
    26 studies into theROI in relation to social media marketing is necessary, it would be impractical for organisations to overlook the point that traditional mass media outlets are now being combined with social media in order to connect with their consumers, on a more personal and communicative level (Scott, 2010). Marketers appear to be in the middle of the fence in regards to fully committing themselves to the opportunities of social media, possibly due to threat of the unknown. For that reason some still cling onto older, out-dated models of marketing until more research can be presented. 2.5 Influences of Social Media (Consumer Perspective) In order to fully assess the impact of social media on brand communication, it is essential to review the implications from a consumer perspective. Consumers are now becoming more innovative, and have more power than ever before through social media and technology advancements. Word of Mouth (WOM) communication is ‘an important marketplace phenomenon by which consumers receive information relating to organisations and their offerings.’ (Laczniak et al, 2001) This type of communication is important as it usually comes from peer groups, and it has been proven that consumers are more likely to trust this type of information rather than a company affiliated source (Feick & Price, 1987). It has been around since the beginning of marketing and has been considered the most effective form of marketing (Dye, 2000). Erik Qualman (2013) explains that before SM, word of
  • 27.
    27 mouth communication, wasrather slow spread and could be ‘diluted’ overtime. Consumers now have the ability to communicate their thoughts and feelings about a particular brand, effortlessly. Thus cometh the creation of Electronic Word of Mouth (eWOM), as it allows consumers to communicate with a large volume of individuals, anonymously if they so choose it and is available for an infinite period of time (Henning-Thurau et al, 2004). One example of the power the consumer has in relation to their voice being much louder with the creation of social media campaigns is coffee brand ‘Starbucks’. Although they have a positive reputation on social media due to many successful campaigns and a willingness to engage with their consumers, they have also fallen target to consumers voicing their negative opinions about the brand. One Christmas as a PR stunt, they displayed twitter messages that included their hashtag ‘spreadthecheer’ on a large screen next to an ice rink at London’s natural history museum. However they forgot to monitor what was actually being posted, which can be seen below, allowed consumers to voice their opinions about their tax scandals (David Moth, 2014)
  • 28.
    28 Figure Ten Source: https://econsultancy.com/blog/64328-eight-awesome-social-campaigns-from-starbucks Alongwith eWOM, consumer’s willingness to accept new technology has also been a contributing factor in the phenomenon of social media. Davis (1989) explains that there are two features that influence this; perceived usefulness & perceived ease-of-use. For consumers the usefulness of social media is in the ease in which they can communicate with not only their peers but directly with companies. As technology is advancing at such a rapid speed the perceived ease- of-use is obviously something that needs to be further investigated, due to the generational differences. Bruhn et al (2012,p771) explains, “social media offers an opportunity for consumers to talk to hundreds or even thousands of other consumers around the world, companies are no longer the sole source of brand communication”. With the increased use of smartphones, and mobile data plans, consumers are now able to communicate their thoughts and feelings via social networks whilst on
  • 29.
    29 the go. Ina study conducted by Mintel, they found that 40% of users accessed social networks out with their home at least once a day. (Mintel Oxygen, 2013) Furthermore it has also been found that 54% of consumers used social media to ‘like’ or ‘follow’ a brand. (Mintel Oxygen, 2013) Social Media reemphasises the shift in paradigm and the fact that consumers are now searching for alternatives and stepping outside their comfort zone. Even more so they now have more choice than ever and thus more control than ever before. Further research is essential in order to fully understand the consumer perspective on the increased use of social media as a brand communication tool, as there is a limited amount of empirical evidence available from their viewpoint 2.6 Conclusion As the phenomenon of social media is fairly new, there is limited research focused solely on the way it has effected brand communication. This literature review has explored the background of social media, as well as delving into the fundamentals of brand communication. Although there is a substantial amount of research from an organisational perspective in regards to social media, there is little from a consumer’s perspective. Therefore it would suggest that further research from an organisational perspective to understand fully their feelings about social media as a brand communication tool is necessary. Along with this a more in depth analysis of the way in which consumers perceive social media as a
  • 30.
    30 brand communication tool,as there is little to no research available specifically within this area.
  • 31.
    31 CHAPTER 3: METHODOLOGY 3.1Research Paradigm and Approach Research philosophy is the way in which one constitutes knowledge. By doing so this allows for the researcher to identify and adapt their research design as the research progresses (Baxter et al, 2010). Positivism takes on an objective view, and the researcher is detached from those who are being studied. (Wilson, 2010) Interpretivism on the other hand, concentrates their efforts on one particular area of study, and actively engages with their research and its participants (Saunders et al, 2012). Positivists hold the belief that research should be scientifically carried out, and is usually based on a deductive approach (Wilson, 2010). However Interpretivism allows for the researcher to be interdependent and interact with their research participants. (Baxter et al, 2010) Researchers, who adopt this philosophy, view their surroundings as complex and open to interpretation (Wilson, 2010). Due to this, and the fact Interpretivism is usually based on an inductive approach, the researcher adopted this type of philosophy. The two main types of approaches within research are ‘inductive’ and ‘deductive’. Wilson (2010) references Kenneth F. Hyde (2000,p.83) stating that inductive consists of ‘a theory building process, starting with observations of specific instances and seeking to establish generalisation about the phenomenon under investigation’. Saunders et al (2012) explains that an inductive approach has a more flexible structure as it allows for changes within the research as it
  • 32.
    32 progresses. It alsoconcentrates on qualitative data, and recognises the researcher as part of the process. (Bryman & Bell, 2003) Deductive however normally begins with theory and aims to conduct research in order to prove an already existing hypothesis. (Wilson, 2010) It takes on a highly structured approach and is more concerned with scientific principles and quantitative data. (Saunders et al, 2012) This research project took on an exploratory research design, following an inductive approach. Reason being that social media is a fairly new phenomenon and there is limited existing theoretical explanation behind its success as a brand communication tool. The literature review was conducted in order to investigate and provide insight into what is already known about the subject, and to highlight the gap that exists so that further research could be conducted (Bryan and Bell, 2003). Due to the nature of the topic and to ensure reliability, multiple secondary sources were used, to identify current studies of brand communication through social media outlets. Source’s such as academic journals, books, industry market reports and newspaper articles were utilised. As always there are limitations when using secondary data, the fact that it may not correlate with your study correctly, being a crucial factor (Wilson, 2010). It may also be prone to bias or manipulation, depending on who conducted the research (Bryman and Bell, 2003). For this reason, primary data was deemed necessary in order to achieve the research objectives.
  • 33.
    33 3.2 Research Design Thisstudy involved sequential mixed methods research, as there were two Phases of data collection and analysis. (Saunders et al, 2012) Phase one consisted of qualitative face-to-face interviews with two participants, both from different areas of the marketing department within Tesco Bank. Phase two comprised of quantitative questionnaires, which were used to compare and contrast data collected from Phase one. This made for a sequential exploratory research design (Saunders et al, 2012). This can also be explained as a ‘Methodological Triangulation’ as it allows for a mix method of data collection, and allowed for the researcher to combine findings from one method to determine if they confirm findings from the other method. (Wilson, 2010) The interviews carried out were semi-structured, in keeping with the exploratory theme. (Saunders et al, 2007) This allowed for greater flexibility (Wilson, 2010) and the observation of social cues such as tone and body language, which gave more depth to the initial verbal answer. (Opdenakker, 2006) Self completed, web-based questionnaires were then carried out in order to expand and elaborate on information gathered throughout the interviews. (Saunders et al, 2012) This allowed for the data collection process to stay cost effective and reliable, which suited the nature of this study. (Wilson, 2010)
  • 34.
    34 3.3 Phase One- Qualitative Data Collection Qualitative data is ‘principally derived from words not numbers’. (Saunders, 2012,p.159) In order for this type of data to be deemed successful, it is crucial that it be analysed effectively, which can be difficult due to the high volume of information received. (Wolcott, 1994) It can be argued that qualitative data is commonly viewed as being more flexible as it is more receptive to change throughout the research project. (Barbour, 2008) In order to gather qualitative data for this study, face-to-face interviews with relevant key experts were utilised. Participants were both employees of Tesco Bank’s Marketing department: their Clubcard Loyalty Scheme manager and their Social Media manager. Both were given a participant information sheet to read prior to the interview informing them about the purpose of the interview (See Appendix A), and then a consent form to sign giving their informed consent to participate (See Appendix B). By gaining access to two different sectors of the marketing department, this allowed for a more in-depth analysis in regards to the implications social media is having from an organisational perspective. Access to the interviewees was achieved through the researcher’s prior connection with Tesco Bank, as a part time employee. This meant that the role of an internal researcher was adopted, and by doing so the researcher was conscious not to compromise the findings by allowing pre-conceived notions or assumptions to feed their way into the results or analysis section of the study (Saunders, 2012).
  • 35.
    35 Semi-structured interviews wereconducted, in which key topic areas that would be discussed were decided on by the researcher prior to the interview (See Appendix C). This provided opportunity for the respondent to further elaborate on specific areas, as well as allowing them to raise their own questions (Wilson, 2010). As well as giving an organisational perspective on the adoption of social media, it also gave the researcher insight into whether or not the companies intentions, translated correctly to the consumer. Content analysis was then conducted from the findings of the interview, by transcribing the recorded audio of both interviews (See Appendix D). As a form of data reduction the researcher summarised and simplified the data that was gathered, through a transcript summary. This involved compressing long statements into shorter ones, by rephrasing what the participant has said in a few key words. (Saunders et al, 2012) By doing so this allowed the researcher to highlight key themes, also known as codes, from each interview (See Appendix E & F). These codes were decided upon either by terms the interviewee had used or already existing terms used in existing theory and literature. (Saunders et al, 2012). By doing so this increased the reliability of the research, as it eliminated research bias. By analysing the data in such a way, it showed the researcher thematic threads, in order to highlight the importance of social media from an organisational perspective and their professional opinion towards the phenomenon. The researcher was then able to cluster responses in relation to the research objectives, which allowed for the creation of appropriate questions within the Phase two questionnaires.
  • 36.
    36 3.4 Phases Two- Quantitative Data Collection Quantitative Data was used to reinforce the qualitative data gathered in Phase one through interviews, in order to assess whether or not the use of social media from an organisational perspective, translated correctly to the consumer. Antonius (2004) explains that by using quantitative data ‘we can translate into numbers some aspects of our observations’. Quantitative data can be viewed as more dependable as it is based primary on numerical figures and can be organised into charts or graphs for a more comparative analysis. (Wilson, 2010) Due to time and financial restrictions self-completed, web-based questionnaires were utilised. This helped to improve the reliability of the study, by ensuring the researcher could gather the correct amount of responses within the allocated time (Wilson, 2010). These types of questionnaires were predicted to have a variable response rate of between 30-50% (Saunders, 2012). According to Blumberg (2008) the first stage of sampling is to clearly define the target population. For this study, it would be focusing on 18+ participants, in order to avoid ethical issues. There was no maximum age limit placed on the questionnaire, as it was deemed irrelevant within the study. The sampling frame consisted of Tesco Bank Employee’s and the researcher’s personal network of family and friends. Random sampling was conducted as the researcher selected the sample at random from the sampling frame using a computer. (Saunders, 2012) Due to it being an undergraduate research project and the time restrictions imposed, the sample size was that of 100 people, in
  • 37.
    37 order to keepit manageable as well as maintaining validity. (Saunders et al, 2012) 250 questionnaires were sent out in order to increase the response rate, and thus maintain reliability of the sample in the case that further research be conducted within the subject area. The questionnaires were distributed on “Toluna Quick Surveys”, an online survey creator tool, via Tesco Bank’s internal email system and through the researcher’s personal email to friends and family. A covering letter was included in order to brief participants before they agreed to take part (See Appendix G). Prior to distributing the questionnaires, the researcher conducted a pilot study with a group of five students from Glasgow Caledonian University in order to refine the questions and access the validity, so that respondents had no difficulty providing answers, and thus eliminating any problems recording the data, the researcher may have found further on. (Becker and Bryman, 2004) A data requirements table, which involved a six-step process, was created, to ensure that the questions respondents were asked would enable the research questions to be answered and the objectives achieved. The questionnaire consisted of ten opinion variable questions, which mirrored key topic areas that were discussed in the Phase one interviews. These types of questions record how respondents feel about something, or what they think or believe to be true or false. (Saunders, 2012) The majority of questions asked were multiple choices, except for the final question, which was open ended to allow for consumers to express their own opinions. To begin with the researcher was looking for generic data around the respondent’s participation and their opinion towards social media platforms. Respondents were then asked questions about social media
  • 38.
    38 within a bankingcontext, and finally it was concluded with an open question in which respondents had the opportunity to convey their opinion in their own words. By allowing for an open question at the end of the questionnaire it allowed for the researcher to encapsulate respondent’s feelings, and collect data that the researcher was unable to predict in the form of a closed question. (Bryman and Bell, 2003) The data was compiled into an excel document, through the online survey tool Quick Surveys. This allowed for respondents answered to be complied into pie charts and bar graphs that would be displayed throughout the results chapter along with the findings from the interviews. Some of the respondent’s answers from the open-ended question were used as anonymous quotes throughout the results. The rest of these answers, were compiled into a word document, and split into positive, negative or neutral/mixed comments about brand communication (See Appendix I). 3.5 Limitations and Scope As social media is such a large phenomenon and is present within multiple industries, due to the time limitations within this undergraduate study it was essential that the application of this research be refined. Therefore the primary research concentrated predominantly on social media within a banking context, in order to provide the researcher with an element of focus. The sample size also acted as a limitation; due to the fact it only reflected a small portion of the
  • 39.
    39 populations feelings towardsthe use of social media as a brand communication tool. By exploring this newly found phenomenon the researcher was able to provide rich insights into how companies are approaching the shift in paradigm, and if they are finding it an obstacle or a platform to connecting with their consumer. It also allowed for interesting insight into the way in which consumers are responding to an alternative approach to relationships with the brands in which they buy from. 3.6 Ethical Standards Wilson (2010:79) explains that, as a researcher there is ‘a moral responsibility to carry out your research in an accurate and honest way’. In order to do so, there are multiple factors that need to be addressed in order to ensure the reliability and validity of the research. Most importantly during this research project, privacy, anonymity and confidentiality of participants and any sensitive data obtained must be respected whilst analysing and reporting findings. (Saunders et al, 2012) As there will be two interviews taking place with employees within Tesco Bank, it was essential to respect their privacy. (Saunders, 2012) For this reason, their names have been omitted from the research; however job titles have been named to give credibility to their views and opinions. Previously mentioned
  • 40.
    40 documentation was providedat the start of the interview that explained the full purpose of the researcher and detailed items such as; both participants had the right to withdraw at anytime, as well as emphasising their right of not having to answer any questions they did not want to or provide any data requested from the researcher. (Opdenakker, 2006) The previously mentioned consent form, also allowed participants to give their permission for the researcher to record the interview via a voice recorder, in order to minimise the notes taken by the interviewer, and for reference during the analysis portion of the research, A copy of the final dissertation was also offered to the interviewee participants, in which they both were happy to receive for their perusal. Questionnaires, as they were self-completed and web based, it allowed for individuals to participate voluntarily. It also would allow for them to remain anonymous, allowing for them to express their true feelings without their identity acting as a barrier to the truth. (Wilson, 2010) A cover letter was included during the distribution, in order to brief respondents on exactly what the purpose of the questionnaire was, how long their data would be stored for and their right to skip any question they felt uncomfortable with. (Saunders, 2012)
  • 41.
    41 CHAPTER FOUR: RESULTSAND ANALYSIS 4.1 Analysis Approach This chapter will present the results and analysis that have been obtained through the methods explained in chapter 3. A critical discussion of the findings and their linkages to existing literature will be explored in order to ascertain whether the new data found within this research project relates to the limited but existing information available, as well as accessing if the information gathered has assisted in achieving the research objectives. In this chapter, Social Media will be referred to as ‘SM’; Tesco Bank will be referred to as ‘TB’, their loyalty manager as ‘LM’, and their social media manager as ‘SMM’, and finally participants in the Phase two questionnaires will be referred to as ‘respondents’. 4.2 Results and Analysis of Interviews & Questionnaires Combined Figure eleven on the next page, highlights the 8 most common themes discovered throughout the interviews, along with this, respondents answers gathered in Phase two were accessed. This was to observe the influences that SM has had on brand communication from an organisational and consumer perspective, and to see if it appeared to be a positive or negative change from either perspective.
  • 42.
    42 Figure 11 Key Themes BrandLoyalty Immediate Insight Brand Awareness Negativity via Social Media Relationship Marketing Compliance issues Unity amongst departments Effective Communication TB confirmed that the two SM platforms they actively use are Facebook and Twitter, which complimented the Harvard Business Review study (2010) that showed that 71% of businesses had adopted some form of SM as a communication tool. Respondents throughout the questionnaire had to be active on at least one platform in order to proceed. The results were in keeping with the literature reviews ranking order, that Facebook was the most popular with the largest amount of active users, then Twitter and Finally LinkedIn (See Figure Twelve on next page).
  • 43.
    43 Figure Twelve 4.3 Explorethe influence SM has within Brand Communication - From an organisational and consumer perspective Brand Awareness One influence that SM could have from a banking perspective is that it could be used to show a slightly more human side. One Respondent explained that: “It has allowed for companies to give themselves a more of a human side, a personality to the brand almost. By doing so, it allows them to connect with their consumers effectively.” By doing so this also allows organisations to build brand awareness, an aspect that Aaker (1991) explains as one of the key elements within the brand assets, 53% 30% 17% Which of the following Social Media platforms are you currently active on? Facebook Twitter LinkedIn
  • 44.
    44 which helps tocreate distinction from their competitors. From the interviews it was obvious to see that building awareness of TB as a brand, was a priority. By encouraging customers to engage with the brand through SM campaigns, it helps retain existing customers by allowing them to communicate with the bank in a non-conventional manner, as well as attracting new customers. Interestingly, it appeared that by using SM as a brand awareness tool, could require a smaller budget in comparison to traditional methods, as existing customer’s followers or friends via SM channels are able to see their interaction’s with the bank on their homepages for free, which in turn attracts attention to the brand. From respondents results (see thirteen on next page) it was evident to see that using SM as a brand promotion tool has potential, due to the high volume of consumers who actively follow brands via their SM platforms. From a consumer perspective, there is room for brands on their SM platforms, as they would not be actively allowing them to become part of their personal space by following them if they did not.
  • 45.
    45 Figure Thirteen TB’s SMMexplained that due to their ‘retail bank’ status, they take much of their direction from Tesco as a group, and with TB continuing to grow, eventually it would be essential for them to establish their own SM platforms, rather than ‘piggy backing’ off the back of their parent company. As they do not publicise the fact that consumers can in fact make contact with them via SM channels, it would require a larger staff and budget allocation if in the future the bank decided to increase brand awareness/communication via SM platforms. TB’s PR team also recently started to utilise SM channels as a brand awareness tool, in relation to their charitable efforts with local communities, which is interesting as it shows that different aspects of the brand can have different levels of involvement within SM. For the bank as a whole, it is clear to see that using SM, as a brand communication tool is a fairly new concept, which however has potential if they continue to include it when developing their strategy in the near future. 69% 31% Do you follow or like any brands via your social media? Yes No
  • 46.
    46 From figure fourteen(below) it shows that 33% of consumers expect their bank to be present on SM, which holds promise for TB in developing their SM strategy, and that the other 39% who were not too concerned about the presence of their bank on SM could possibly be convinced otherwise, if the correct marketing techniques and incentives were presented to them. By utilising SM, it allows them to influence customers in a much bigger way, and allows consumers the option to include banks within their SM platforms, which is important. Figure Fourteen Effective Communication From an organisational perspective, SM has opened up a gateway for effective communication between business and consumer; this was a prominent part of the discussion throughout both interviews. 33% 28% 39% Do you feel banks should be present on social media? Yes, if they wish to keep up with the times No, banks do not belong on social media It doesn't really bother me
  • 47.
    47 TB’s LM saidthat this aspect of SM took priority, and that making sure customers received a reply if they chose it as a point of contact, was essential. This feature of the bank’s SM strategy is something they should continue to ensure, as although majority of respondents said it would depend what they were buying, it can be seen from figure fifteen (below), that effective communication between the brand and consumer does to some extent have an influence on their final purchasing decision, and by proxy their perception of the brand overall. Figure Fifteen The SMM further explained that even if it was just a generic holding response, if outwith the hours of 9am-5pm, customers would always receive a response via SM channels if attempting to contact the bank. Furthermore she explained that it had influenced them to the point, that they have two software programmes in place to assist them when interacting with customers. The first is ‘Brand Watch’ Yes 21% No 36% Depends on what I'm buying 43% Would you be less likely to buy from a brand if they were not seen to be acitvely responding to customers enquires/concerns via social media?
  • 48.
    48 which is awell-known SM monitoring tool run by a SM agency on behalf of TB, to help them keep track of what people are saying about the brand. Secondly they use ‘Conversocial’ in order to respond to any customer queries which have been directed at the brand. TB’s SMM believed SM has allowed their interaction with customers to become a lot ‘more fluid’ as customers can express opinions and feelings easily, as opposed to traditional methods which can take longer for the brand to receive feedback, and even longer for changes to be implemented to reflect that. However because the banking brand is not necessarily, a brand in which consumers automatically think about using SM to connect with, figure sixteen (next page) shows the harsh realities that TB are presented with. For this reason, if choosing to further develop SM as a brand communication tool within the bank, it would be essential for some level of promotion to encourage and educate consumers about making use of this option the bank has in place. As of right now it would appear that from TB’s banking perspective it would appear that brand communication isn’t highly influenced by SM, and their ability to communicate effectively with their consumer. Furthermore, it appears that from a consumer perspective, they either don’t want to interact via SM, or simply have not been given enough information to make an informed decision on the matter.
  • 49.
    49 Figure Sixteen Tying inwith this, it was also discussed, that there is a lack of awareness from a consumer perspective that views and opinions expressed on SM, are captured and used as a method of feedback for brand improvement. With that being said, although consumers may not have communicated with the bank directly, even if they have ever simply posted a comment on an Facebook post by the bank, or retweeted them on Twitter, this would have had an influence on brand communication from an organisational perspective, without consumers necessarily realising they had contributed. Relationship Marketing There were many references to the influence SM has had on brand communication, specifically the aspect of relationship marketing, which as Ajio 0%3% 3% 94% Have you ever used social media to communicate with your bank? Regularly Sometimes Never
  • 50.
    50 (1996) said, isthe changing marketing paradigm. As the bank is set within a dry and serious industry, it can be difficult to build that emotional connection with customers. TB’s LM explained that a lot of the work they do is very functional, and due to this, as a brand they experience more obstacles when attempting to establish a relationship with their customers. Both managers agreed that SM established an alternative way to communicate and target their customer base. However it was TB’s SMM who made some extremely insightful comments about the banking industry and why the need for relationship marketing is becoming much more apparent. Due to the current economic climate, she explained that banks 'have to be much more transparent, open and honest and be actively responding to customers’. This has got banks dynamically thinking about the ways to communicate their brand with consumers, and the relationship they wish to establish with them, to help better the business and customer satisfaction levels. This linked well with Mangold and Faulds (2009) viewpoint that organisations are now realising the need for creating a brand dialogue in which customers can become involved in and form opinions and feedback about, rather than a brand monologue, where customers are simply talked at and told what to purchase. One respondent also, had the same viewpoint stating: “I believe that SM has made companies more reactive to their customers. They no longer can avoid issues or complaints and must deal with them in a timely manner. It also gives them the ability to introduce new ideas and special promotions in a quick and effective manner.”
  • 51.
    51 It can beseen from figure seventeen (below) that for brands promoting via SM, consumer’s expectations are high, and SM has influenced brand communication from a consumer perspective in regards to their expectations of brand’s that are active on SM. Figure Seventeen TB’s SMM highlighted that from an organisational perspective the influence SM has had, is that it is allowing consumers to see a more ‘human side’ to the banking industry, thus enabling TB to build relationships with their customers and to understand their needs and wants more efficiently. 0 10 20 30 40 50 60 70 To provide information and news about the brand To respond to customer queries and concerns To interact with their customers, via competitions and prize give aways To encourage feedback and involve customers when developing the brand All of the above I don't expect anything from them PercentageofRespondants(%) Expectations from Customers What do you expect from companies who actively promote their brand via social media?
  • 52.
    52 Unity Amongst Departments Bothinterviews highlighted that SM not only influenced brand communication, but also contributed towards bringing the overall business together. Their LM said that SM helped to bring the loyalty department together with the main business, as they were able to see results instantly from joint campaigns. For example, when their loyalty department paired up with their pet insurance department to send birthday cards to the pets and a voucher for their owner to buy them something in a Tesco store. They were able to see the results and outcome of the campaign via SM such as Twitter, in which customers had posted pictures of what they had bought their pets, and used the bank’s suggested hashtag of ‘tescopetbirthdays’ to allow them to see it. It would appear that the biggest influence in bringing the business together could be attributed to the weekly report that is distributed to all departments within the business (See Appendix J). The report consists of a combination of TB’s SM activity and customer feedback, in order to give departments a sense of what their categories reputation is via SM. Both managers agreed that this was definitely a positive influence towards the level of involvement SM has had, not only within brand communication, but also the overall business. The SMM mentioned that they would soon be implementing a new report specifically designed for senior executives ‘to get them to take SM more seriously’. The lack of importance placed on SM by senior executives, could be related to Weinberg & Pehlivan’s (2011) argument that the scarcity of proof available in regards to return of investment (ROI) and little knowledge of the different types of SM
  • 53.
    53 available, may becontributing factors. However by TB distributing this new report, they hope it will allow them to analyse their offerings and processes more effectively, and bring to light the influence SM can have on the organisation as whole, and not just the marketing department. It was highlighted by the SMM that TB although an established retail bank, do not have a designated team in charge of SM and that it is very much managed on the side. However the LM gave a positive contribution by explaining that with the launch of their forthcoming current accounts, they have started to liaise more with the SMM. Furthermore it was explained by the SMM that in the future it would be essential for a team to be put together in order to help manage the SM aspect of the business, if TB as a brand wish to develop their strategy and presence further in the future. 4.4 Evaluate whether or not the increase of SM is viewed as a positive change from an organisational perspective Brand Loyalty Brand loyalty was quite prominent in the discussion of how SM can create a positive change within the business. TB’s LM explained that “loyalty is driven by engagement”, so by “interacting with their customers in a way that is meaningful, and by rewarding them in a genuine way, it brings it full circle back to loyalty”. One respondent said that:
  • 54.
    54 “Brands can targetconsumers in a more personal way in order to increase brand loyalty.” Showing that there is knowledge of brands intentions to personalise the purchase experience for the consumer, and to connect to them on a more personal level, for example through relationship marketing. The main intention of TB’s marketing campaigns is to encourage brand ‘advocacy’, this involves retaining customers who speak favourably about the product, who then partake in word of mouth communication, thus encouraging potential customers to buy from a specific brand. Their LM explained that it is highly valued by the bank, as they ‘can’t buy that kind of exposure’, further building upon the concept in Strategic Direction (2012) about consumers marketing amongst themselves, in turn taking control of brand communication. TB’s SMM further added to this, explaining that consumers are now becoming immune to traditional marketing methods, such as the ‘tell and sell model’, as they have been over exposed to them, for example TV adverts. Due to this TB must be seen to be pursuing alternate routes of promotion, as well as actively engaging with their customers, if they wish to retain them. There is an overall positive reception from consumers, towards brands utilising SM as a brand communication tool, which can be seen in figure eighteen (next page), however there were a few negative responses, one of which said: “When I’m on SM I only want to use it to communicate with my friends”
  • 55.
    55 With this beingsaid, and that TB is set within a constricting industry, which will be discussed further later in this chapter, there are many obstacles that the bank will be up against if they wish to achieve brand loyalty with the help of SM. Figure Eighteen Grönroos (1997) argument that customers now have their own voice, and more choice within the market, linked well to this section, as it is not the banks who are in control anymore as previously mentioned. In order for them to remain competitive they need to be receptive to change and consumer wants. With that being said, TB’s managers felt that by actively listening, and valuing consumer opinions via SM, and addressing issues raised by customers, these customers will become loyal to the brand, which positively contributes to the business as a whole. Relating back to the previous figure, it can be seen there was a minimum amount of negativity towards brands using SM to communicate with customers, 0% 10% 20% 30% 40% 50% 60% 70% Positive Negative Neutral Percentage of Consumers (%) ConsumerResponse In general how do you feel about brands using social media as a method of communication?
  • 56.
    56 consequently TB canturn this positive change for the consumer, into a positive change for themselves through acquiring brand loyal customers, it would then appear that everybody benefits in some way or another. Immediate Insight Throughout both interviews, this was viewed as a very positive change as to what SM can really give back to the bank. Their LM commented on the fact that SM has given them ‘more immediate insight’ and allowed them to see that ‘instant reaction’, specifically with the previously mentioned weekly report produced, that helps in monitoring positive, negative and neutral comments from TB’s Facebook and Twitter pages. Their LM also explained they could see reactions to their campaigns, in regards to customer’s gratitude or general responses. For example SM has enabled them to see the positive praise they have received from customers from an accessibility perspective, i.e. Mincom for deaf customers. From the figure nineteen (next page) this again links in with Grönroos (1994) argument, as 55% of respondents viewed SM as a positive change, as it has given them a voice, along with the other 31% believing that it was dependant on the situation, but still contributed to their voice being heard. It would be impractical for businesses not to utilise SM as a way of gathering data and feedback about their brand and products, if consumers are willing to do so, as honest data can be the most difficult to come across, and as previously pointed out by the SMM, is a more fluid method of gathering information from consumers.
  • 57.
    57 Figure Nineteen With thatbeing said, TB’s SMM made an excellent point, saying they felt that it was a great way to ‘gauge sentiment’ and ‘get real time information’, as well as realising that a truer response can be captured via SM which can at some points be slightly harsher - but beneficial to the business overall, which makes this a positive change within brand communication. It was also discussed, that there was a lack of awareness from a consumer perspective that views and opinions expressed on SM, were captured and used as a method of feedback for brand improvement. This is something that TB in the future could maybe think to promote, in order to allow their customers to see that their opinions and concerns expressed on SM are valued and are taken into consideration by the bank. Yes No Sometimes 0% 10% 20% 30% 40% 50% 60% Consumers Opinion NumberofResponses(%) Do you feel as a consumer, that social media gives you more of a voice, to highlight positive and negative experiences with brands you have purchased with? 55% 14% 31%
  • 58.
    58 Negativity via SocialMedia Although SM has been viewed as a positive change within the business, it naturally has negative connotations as well. Both managers agreed that, TB is set within a ‘dry’ industry, and with this comes perceptions of financial services, as well as existing perceptions of the Tesco brand. Add to this the huge stigma around the fact that nobody trusts banks anymore because of the economic climate, and that presents an idea of the type of negativity TB find themselves up against. For this reason, TB’s LM said that they have approached SM with caution, as they are ‘quite risk adverse’ and have not necessarily wanted to open themselves up to that kind of exposure without being clear on how they would manage and use it. The SMM elaborated on this by explaining that SM can quite easily damage the reputation of a brand, and can be quite difficult to manage if the appropriate measures are not set in place to neutralise negativity. From a consumer perspective this was picked up on, with one respondent stating: “SM has given companies an easier way to promote as they can reach people all over the world very quickly. Managing SM could be difficult, as negative comments posted by consumers spread just as quickly as positive, so the companies have to ensure it is managed well.”
  • 59.
    59 Figure Twenty Figure twenty(above) shows just how frequently consumers use SM, from their perspective their usage can be viewed as positive as they must enjoy it, with 85% of consumers saying they use it either hourly or daily. Both managers agreed that, although SM gave consumers a voice, it also gave them an outlet to ‘rant’ about brands, which as their LM pointed out, might only be ‘a snapshot reaction of an otherwise happy customer’. Therefore from an organisational perspective, consumer’s frequent usage of SM could correlate with the tendency to rant about negative experiences, or to express negativity towards brands when they are in a bad mood. TB’s SMM elaborated by saying, they had experienced an incident with a minor celebrity who had car insurance with them, and had taken to Twitter repeatedly, to rant about a problem he’d experienced with TB. This caught the attention of senior management; due to the amount of followers the celebrity’s negative 45% 40% 8% 7% How often do you use social media? a few times an hour a few times a day a few times a week a few times a month
  • 60.
    60 opinions were reaching.This further builds upon Bruhn (2012) that, with SM customers can communicate with a multitude of people, and the brands themselves are not the soul source of brand communication anymore. Compliance Issues Another less than positive aspect presented, is the obstacles and challenges arising from being a bank present on SM. The main issue really seemed to be from a compliance perspective, and being set within the heavily regulated financial services industry. TB’s SMM described SM as ‘space restrictive’, and because they have many terms and conditions that need to be displayed by law issues have arisen. To explain this further, their SMM said that they are presented with the task of having to strike that balance of being present on SM and showing customers they are in keeping with the times, but at the same time still present the image of being an ‘established and trusted bank’. Anything that is present on TB’s SM platforms obviously must firstly, be factually correct and furthermore have gone through all the necessary compliance checks that all their banking products must before being released to the public. Another main compliance issue they face is that of their data policies, in regards to how customers can be marketed. These need to be updated to include SM as a method of promotion, as right now TB cannot target customers as specifically through SM as they can, without the necessary permissions.
  • 61.
    61 Figure Twenty-One When respondentswere asked, if they would give permission to their bank to use their information to target them via SM (See Figure Twenty-one above), a staggering 77% said they would not be willing to do so. However, consumers never want to be ‘marketed’ at, so it would be something that TB would need to approach with caution, and in an inventive way - in order to entice consumers into allowing them to be contacted via their SM channels. Finally, many of the issues that customers contact TB about via SM, because of their nature, need to be investigated and checked to make sure the necessary compliance routine was followed before they can give the customer an explanation or take further action. This aspect alone makes SM slightly trickier and a bigger change to adapt to for banks, as they cannot always reply instantly with an answer. 23% 77% If your bank wished to target you with relevant offers and content via social media, would you give your permission for your information to be used in this way? Yes No
  • 62.
    62 4.5 Conclusion Throughout thischapter the results and analysis from both Phase one and Phase two methods have been discussed in order to explore the influence that SM has had on brand communication from both an organisational and consumer perspective. Furthermore it presented evidence in order to gain an understanding towards whether or not SM has been viewed as a positive change from both organisational and consumer perspectives, thus helping to discover SM’s role in developing and nurturing brand communication, specifically within a banking context.
  • 63.
    63 CHAPTER FIVE: CONCLUSIONAND RECOMMENDATIONS This research has explored the rise of the social media phenomenon and its impact in developing and nurturing brand communication. In chapter one of the dissertation, research objectives were established in order to outline a suitable course of action for the research to follow. The literature review looked at social media and its impact on brand communication, in more of a general sense and the influences it has had from both an organisational and consumer perspective. This research however only focused on one particular organisation Tesco Bank, and for that reason provides only a glimpse into the social media phenomenon. Further research which has been explained already in the previous limitations, would be essential in order to fully explore the impact social media has had on brand communication. Although there has been a mixed reaction to the approach organisations should take in regards to incorporating social media into their business strategy, it can be seen from the examples in chapter two, and the findings in chapter four - that social media whether it be positive or negative is on some level impacting the way organisations and consumers view brand communication in present day. Initially the study explored the rise of social media, in particular Facebook, Twitter and LinkedIn, by identifying their key characteristics and their individual assets as a method of brand communication. Facebook, pioneered the way forward for user generated content (Laroche, 2012), closely followed by Twitter with its micro blogging site and from the research it was clear to see, from both an organisational and consumer perspective that they remained the strongest
  • 64.
    64 contenders within thesocial media world, followed by the up and coming LinkedIn. Weinberg & Pehlivan (2011) had explained there was a lack of understanding from senior management in regards to the differences between social media platforms, by exploring the key aspects and distinguishing their alternative uses, it was clear to see that without a solid understanding of each - it would be impossible to successfully implement a social media strategy. As there were only three platforms examined, a further recommendation would be to include multiple platforms and their offerings to examine the different methods of brand communication that could be installed throughout. It was apparent that the influence in which social media could have on brand communication from an organisational perspective could be dependant on the organisation itself. Specifically with Tesco Bank, the influence it seemed to be having has been minor; this is due to the obstacles of being a bank present on social media. As a retail bank, it was discovered that much of their social media strategy was dictated by their parent company, and that they had only just began development of it. It was also seen from the results, that from a consumer perspective, social media although very positively accepted as a method of brand communication in general, from a banking perspective there was little to no knowledge of its existence. This could be contributed to the fact that they as a business reside within financial services and because of this, consumers approach them on more traditional methods due to safety concerns. With this being said, another influence that social media was noted to have was the ability to increase brand awareness, an aspect in which Tesco Bank were keen to continue to utilise. It had also contributed to the influence of unity amongst their
  • 65.
    65 marketing department, withdiscussion of it hoping to have the same effect on senior management. From a consumer perspective, the influence in which social media has had on brand communication, has allowed them to become more involved with the brand, in keeping with Mangold and Faulds (2009) argument. It has also allowed for more effective word of mouth communication between them and their peers, agreeing with Erik Qualman (2013) that social media has given them the ability to communicate far more effortlessly than before. Overall the perception of social media seemed to be fairly positive from an organisational perspective. Even Tesco Bank although slow to start, due to being risk adverse with the nature of their business, have begun involving themselves in the world of social media, confirming Keynote’s (2012) report that a multitude of UK companies are now active on social media platforms. Unfortunately unlike other brands, they are limited with the content they can post and the matters they can discuss via social media, effectively tying in with Chikandiwa et al (2013) argument that legal policies and extensive regulation cause obstacles for their type of organisation. However, it was noted by Tesco Bank that due to the high volume of activity present on these platforms and the amount of insight they could gain from them, it was clear, that they as well as their consumers could benefit from them having a presence on social media. As previously mentioned, there was a lack of awareness of Tesco Bank’s presence on social media from a consumer perspective, however this could be easily rectified with the correct strategy, as it was evident that consumers were happily allocating brands a space within their social media platforms. With that being said, it would appear that it is more about how innovative and creative brands can be, and the
  • 66.
    66 way in whichthey can involve their consumers with their social media campaigns, rather than simply establishing a presence and hoping consumers notice them. A recommendation for this study would be to further investigate social media and its impact in developing and nurturing brand communication from a consumer perspective to see exactly the types of involvement they would like from brands and the level of contribution they would be prepared to make, as there is very little existing research to help clarify their overall stance on the matter. Furthermore to look at multiple industries in order to compare and contrast the impact social media has had on their brand communication.
  • 67.
    67 CHAPTER SIX: REFERENCELIST 6.1 In Text References Ajio TS., (1996), ‘The theoretical and philosophical under pinning’s of relationship marketing: Environmental factors behind the changing market paradigm’, European Journal of Marketing, Vol.30 Iss:2, pp.8-18 Aaker, JL., (1997), ‘Dimensions of Brand Personality’, Journal of Marketing, Vol.34, Iss:3, pp.347-356 Anderson, PH., (2005), ‘Relationship marketing and brand involvement of professionals through web-enhanced brand communities: The case of Coloplast’, Industrial Marketing Management, Vol.34, Iss:1, pp.39-51 Bruhn, M., Schoenmueller, V., & Schäfer, DB, (2012) ‘Are social media replacing traditional media in terms of brand equity creation?’, Management Research Review, Vol. 35 Iss:9, pp.770 – 790 Chikandiwa., ST., Contogiannis, E., & Jembere, E., (2013), ‘The Adoption of Social Media in Marketing in South African Banks’, European Business Review, Vol.25, No.4, p365-381
  • 68.
    68 Correa, T., (2010),‘Who interacts on the Web?: The intersection of users’ personality and social media use’, Computers in Human Behaviour, Vol.26, Iss:2, pp.247-253 Davis, FD., ‘Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology’,MIS Quarterly, Vol. 13, No. 3 (Sep., 1989), pp. 319-340 De Vries, L., Gensler, S. & Leeflang, P, (2012), ‘Popularity of Brand Posts on Brand Fan Pages: An Investigation on the Effects of Social Media Marketing’, Journal of Interactive Marketing, Vol.26, Iss:2, pp.83-91 Dye, R., (2000), ‘The Buzz on Buzz’, Harvard Business Review, pp.139-146 Emarketer Report (2012), ‘Do Social Media Postings Always Require A Brand Response’, Available at: http://www.marketresearchworld.net/content/view/4528/48/ Last Accessed: 14/11/2013 Facebook Official Website (2013), ‘Key Facts’ page, Available at: http://newsroom.fb.com/Key-Facts, Last Accessed 14/11/2013 Facebook Official Website (2013), ‘Like’ Button Information’, Available at https://www.facebook.com/like , Last Accessed 09/12/2013 Feick, L.F. & Price, L.L. (1987) ‘The market maven: a diffuser of marketplace
  • 69.
    69 Information’, Journal ofMarketing, Issue: 51, pp. 83–97. Fisher, T., (2009), ‘ROI in Social Media: A look at the arguments’, Database marketing & Customer Strategy Management, Vol.16, Iss:3, pp.189-195 Fuan, L, & Nicholls, JAF., (2000), ‘Transactional or Relationship Marketing: Determinants of Strategic Choices’, Journal of Marketing Management, Vol.16, Iss:5, pp.449-464 Gensenhues, A., ‘Survey: 71% of Companies Concerned Over Social Media Risks, But only 36% Provide Employee Training’, Marketing Land, Available at: http://marketingland.com/survey-71-of-companies-concerned-about-social- media-risks-only-36-do-social-media-training-60212, Last Accessed 10/12/2013 Gillian, P., (2007) ‘The new influencers: A marketer's guide to the new social media.’ Quill Driver Books, Sanger Grönroos, C., (1997) ‘Keynote paper from marketing mix to relationship marketing - towards a paradigm shift in marketing’, Asia-Australia Marketing Journal, Vol.2, Iss:1, pp.332-339 Harvard Business Review, (2010), ‘The New Conversation: Taking Social Media from Talk to Action, SAAS
  • 70.
    70 Hennig-Thurau, T., Gwinner,K.P., Walsh, G. & Gremler, D.D. (2004) ‘Electronic Word-of-mouth via consumer-opinion platforms: what motivates consumers to Articulate themselves on the Internet?’, Journal of Interactive Marketing, 18 (1), pp. 38–52 Kaplan, AM., Haenlein, M., (2010), ‘Users of the world, unite! The challenges and opportunities of Social Media’, Business Horizons, Vol: 53, Iss: 1,pp.59-68 Keller, KL., & Lehmann, DR., (2006), ‘Brands and Branding: Research Findings and Future Priorities’, Marketing Science, Vol.25, Iss:6 Keller, KL., (1993), ‘Conceptualizing, measuring and managing customer-based brand equity’, Journal of Marketing, Vol:57, Iss:1, pp.1-22 Keynote (2012), ‘Social Media Market Assessment’, Available at: https://www.keynote.co.uk/market-intelligence/view/product/10622/social- media-marketing?highlight=social+media&utm_source=kn.reports.search, Last Accessed: 10/11/2013 Knox, S., & Walker, D., (2001), ‘Measuring and Managing brand loyalty’, Journal of Strategic Marketing, Vol:9, Iss:2, pp.111-128 Kotler, P., & Armstrong, G., (2010), ‘Principles of Marketing’, Pearson Education Krum J., et al (2008), ‘User,-Generated Content’, Vol:7, Iss:4, pp.10-11
  • 71.
    71 Laczniak, RN., etal (2001), ‘Consumers’ Responses to Negative Word-of-Mouth Communication: An Attribution Theory Perspective’, Vol.11, Iss:1, pp.57-73 Laroche, M., Habibi, MR., Richard, MO. & Sankaranarayanan, R., (2012), ‘The effects of social media based brand communities on brand community makers, value creation practices, brand trust and brand loyalty’, Computers in Human Behavior, Vol. 28, Iss:5 pp.1755-1767 Lenhart, A., & Madden, M. (2007). ‘Social networking websites and teens: An overview’, Reprinted by, Pew Internet & American life project Levitt, T. (1938), ‘The globalisation of markets’, Harvard Business Review, Vol.61, Iss:3, pp.92-102 LinkedIn Official Website (2013), ‘About Us’ page, Available at: http://press.linkedin.com/about , Last Accessed 14/11/2013 MBA Lectures Website (2013), ‘Four P’s of Marketing’, Available at: http://mba- lectures.com/marketing/principles-of-marketing/654/marketing-mix-or-four- ps-of-marketing.html , Last Accessed 19/02/2014 Mangold, WG., Faulds, JD., (2009), ‘Social Media: The New Hybrid element of the promotional Mix’, Kelley School of Business, Indiana University, Business Horizons, pp.357-365
  • 72.
    72 Michael A. Steizner(2013) ‘Social Media Marketing Industry Report 2013’, Social Media Examiner, Available at: http://www.socialmediaexaminer.com/SocialMediaMarketingIndustryReport20 13.pdf Mintel Oxygen (2013) ‘Mobile Phones – UK”, Available at: http://academic.mintel.com/display/655027/?highlight=true#hit1 , Last Accessed: 11/11/2013 Mintel Oxygen (2013), ‘Social Networking - UK’, Available at: http://academic.mintel.com/display/666570/ , Last Accessed: 11/11/2013 Mintel Oxygen (2013), ‘Digital Trends’, Available at: http://academic.mintel.com/display/688317/#figure58 , Last Accessed 12/11/2013 Moth, D., (2014), ‘Eight awesome social campaigns from Starbucks’, Available at: https://econsultancy.com/blog/64328-eight-awesome-social-campaigns-from- starbucks, Last Accessed: 02/04/14 Mitic, M., & Kapoulous, A (2012), ‘Understanding the Role of Social Media in Bank Marketing’, Marketing Intelligence and Planning, Vol.30, No.7, pp.668-686
  • 73.
    73 Muniz, AM., &Schau, JH., (2002), ‘Brand Communities and Personal Identities: Negotiations in cyberspace’, Advances in Consumer Research, Vol.29, pp.344-349 New York Times Official Twitter (2013), Available at: https://twitter.com/nytimes Last Accessed 15/12/2013 Nickels, WG., & Wood, MB., (1997), ‘Marketing: Relationships, quality, value’, New York, Worth Publications Nolan, H., (2009), ‘New York Times ‘Social Media Editor’ Playing Out Exactly As Suspected’, Available at: http://gawker.com/5270593/new-york-times-social- media-editor-playing-out-exactly-as-suspected, Last Accessed 13/11/2013 Petrof, JV., (1997), ‘Relationship Marketing: The Wheel Reinvented?’, Business Horizons, Vol.40, pp.26-31 Qualman, E., (2013), ‘Socialnomics: How Social Media Transforms the Way We Live and Do Business’, Google EBook, pp.1-2 Schultz, DE., & Peltier J., (2013), ‘Social Media’s Slippery slope: Challenges, Opportunities and Future Research Directions’, Journal of Research in Interactive Marketing, Vol.7, No.2, pp.86-99 Scott, DM., (2010), ‘The New Rules of Marketing & PR’, E-Book, Available at: http://books.google.co.uk/books?hl=en&lr=&id=ZV-
  • 74.
    74 GPw5BYq0C&oi=fnd&pg=PA21&dq=tradtional+vs+social+media&ots=xpSEur5K nh&sig=5l5KbJnDb5RYpOey4QCxx3X5IPo#v=onepage&q&f=false , Last Accessed:12/11/2013 Social Bakers Report (2014), ‘KLM socially devoted’, available at: http://www.socialbakers.com/storage/www/klm-sociallydevoted.pdf, Last Accessed: 02/04/14 Strategic Direction (2012), ‘New media needs new marketing: Social Networking challenges traditional methods’, pp.24-27, Online Source, Avaliable at: http://www.emeraldinsight.com/journals.htm/journals.htm?issn=0258- 0543&volume=28&issue=6&articleid=17026976&show=html&PHPSESSID=g67i cev9jh2hke41d62jt4v9e0 Last Accessed: 17/12/2013 Twitter Official Website (2013), ‘About Us’ page, Available at: https://about.twitter.com, Last Accessed: 13/11/2013 Weinberg, BD., & Pehlivan E., (2011), ‘Social Spending: Managing the social media mix’, Business Horizons, Vol.54, Iss:3, pp.275-282 Weitz, BA., & Jap, SD., (1995), ‘Relationship marketing and distribution channels’, Journal of the academy of Marketing Science, Vol.23, Iss:5, pp.305-320
  • 75.
    75 6.2 Bibliography Arruda, W.,(2009), ‘Brand Communication: The Three C’s’, Thunderbird International Business Review, Vol.51, Iss:5, pp.406-416 Austen, A., (1983) ‘The Marketing Concept - Is It Obsolete?’, Quarterly Review of Marketing, Vol.9, Iss:1, pp.6-8 Blanchard, O., (2011), ‘Social Media ROI: Managing and Measuring Social Media Efforts in your organisation’, Pearson Education Brodie, RJ., et al (1997), ‘Towards a paradigm shift in marketing? An examination of current marketing practices’, Journal of Marketing Management, Vol.13, Iss:5, pp.383-406 Brown, J., et al (2007) ‘Word of mouth communication within online communities: Conceptualizing the online social network’, Journal of Interactive Marketing, Vol:21, Iss:3, pp.2-20 Brownlie, D., Saren, M., (1991), ‘The Four P’s of the marketing concept: Prescriptive, Polemical, Permanent and Problematical’, European Journal of Marketing, Vol.26, Iss:4, pp.34-47
  • 76.
    76 Emarketer Report (2011),‘How Well is Social Media fitting into the Marketing Mix’, Available at: http://www.marketresearchworld.net/content/view/3861/48/ Last Accessed: 14/11/2013 Emarketer Report (2012), ‘Is your social media strategy global’, Available at: http://www.marketresearchworld.net/content/view/4767/48/, Last Accessed: 12/11/2013 Emarketer Report (2011), ‘Worldwide Social Network Ad Spending: A Rising Tide’, Available at: http://www.emarketer.com/Report.aspx?code=emarketer_2000692], Last Accessed 14/12/2013 Hubspot (2013) ‘101 Companies rocking it on social media’, Ebook, Available at: http://cdn1.hubspot.com/hub/53/101-Companies-Rocking-Social-media- HubSpotv5.pdf Last Accessed 10/12/2013 Kietzmann, HJ., et al , (2011) ‘Social media? Get serious! Understanding the functional building blocks of social media’, Business Horizons, Vol:54, Iss:3, King, S., (1991), ‘Brand Building in the 1990’s’, The Journal of Consumer Marketing, Vol.8, Iss:4, pp.43-52
  • 77.
    77 Mcrea, L., (2012),’16 Brands Leading the Way with Exemplary Social Media Customer Service’, Available at: http://www.ignitesocialmedia.com/social- media-examples/top-brands-social-media-customer-service-facebook-twitter/, Last Accessed: 02/04/14 Mintel Oxygen (2012) ‘Smartphone Purchasing Habits - UK’, Available at: http://www.marketresearchworld.net/content/view/3861/48/, Last Accessed: 10/11/2013 Pellegrino, R., (2013), ‘5 Examples of Brands that Exceed Social Media Expectations’, Available at: http://socialfresh.com/5-examples-of-brands-that- exceed-social-media-expectations/, Last Accessed: 02/04/14 Trusov, M., et al (2009), ‘Effects of word-of-mouth versus traditional marketing, findings from an internet social networking site’, Journal of Marketing, Vol:73 Iss: 9, pp.90-102. Yap KB., et al (2013), ‘ The relationship between electronic word-of-mouth motivations and message characteristics: The sender’s perspective’, Australasian Marketing Journal, Vol: 21, Issue 1, , pp.66-74 Yoo, B., et al (2000), ‘An examination of selected marketing mix elements and brand equity’, Journal of the Academy of Marketing Science, Vol. 28 Iss:2, pp.195- 211.
  • 78.
    78 Appendix A: Participant InformationSheet Purpose of the research Final Year Dissertation, which aims to achieve the following objectives:  Identify key factors in the rise of Social Media (In particular: Facebook, Twitter and LinkedIn)  Explore the importance social media has within brand communication, from both a consumer and organisational perspective  Evaluate whether or not the increase of social media is viewed as a positive change from both consumers and organisations The Researcher Yasmin Love McKeag - Final Year (Honours Student) at Glasgow Caledonian University The Sample for the Organisational Perspective Interviews with two employees’ from Tesco Bank: Social Media & Loyalty Scheme Requirements of taking part  Views and Opinions on the effect of social media from an organisational perspective  One Semi Structured Interview with each participant, that should last around 30-40 minutes
  • 79.
    79 Participant Information andRights  Participation is voluntary  Participants have the right to decline to answer a question or set of questions  Participants names will be omitted from the research project, only job titles will be included  Participants have control over the right to record any of their responses  Participants may withdraw at anytime  By participating in the interview, you will be contributing towards an undergraduate study about social media and its effect on brand communication The use of collected data  Data will be analysed by the researcher through the use of a transcription, and then a transcript summary, followed by coding of key themes discussed throughout the interview  The researcher’s dissertation supervisor, as well as the examination board will have access to the final dissertation  If participants are happy for the information they have provided to be made public, it would be available for anybody to view  Data will be stored on a the researchers personal memory stick/laptop/paper filing system  Any data that is deemed ‘sensitive’ will be destroyed by the 10th of April 2014 when the dissertation is handed in Contact Details If participants have any queries or concerns, please contact me on the following: Mobile: 07807921996 Email: ymckea10@caledonian.ac.uk Thank You for taking the time to read this participation sheet please now read through and sign the consent form
  • 80.
  • 81.
  • 82.
    82 Appendix C: Interview Prompts(For Social Media Manager) Briefing  Hand out Participant information Form & get Consent Forms signed  Undergraduate Dissertation Project  “Exploring the Rise of the Social Media Phenomenon and Investigating its Role and Impact in Developing and Nurturing Brand Communication. Looking Specifically at Tesco Bank (Service)”  Interviewing employee’s at Tesco Bank in order to gain an organisational perspective of the implications of social media  Semi-structured interviews, so feel free to ask your own questions and add anything you feel may be of use throughout the interview  Thank you for your participation and taking time out of your schedule to meet with me Actual Interview From a general perspective how do you feel about social media and how has affected the way companies promote and manage their brand? Do you feel it has a more of a positive or negative influence? What are the most common social media platforms that Tesco Bank uses? Is there any specific software that you utilise in order to monitor the brand’s image via social media? What are the biggest obstacles Tesco Bank faces when promoting themselves through Social Media? Have there been any specific instances when you can remember social media having a negative impact on the Tesco Bank Brand? (If yes, how did you handle this?)
  • 83.
    83 Have there beenany specific instances where you can remember social media having a very positive impact on the Tesco Bank Brand (If yes, how was this reflected?) Are you allocated a sufficient budget in order to manage social media? Do you feel social media will continue to grow and be a permanent influence on day-to-day business? Do you find it more or less difficult to constantly monitor customers wants and needs via social media, rather than other marketing channels? Do you regularly liaise with different departments in regards to social media? In your opinion, what are the most useful and least useful aspects of social media? Is there anything else you would like to add in regards to the social media phenomenon and how it has affected the way companies promote and manage their brand? Debriefing  Thank you for participating in my research, it is greatly appreciated  Offer a final copy of the dissertation when it is completed, acquire address to send it to  End of Interview Interview Prompts (For Loyalty Manager) Briefing  Hand out Participant information Form & get Consent Forms signed
  • 84.
    84  Undergraduate DissertationProject  “Exploring the Rise of the Social Media Phenomenon and Investigating its Role and Impact in Developing and Nurturing Brand Communication. Specifically Tesco Bank (Service)”  Interviewing employee’s at Tesco Bank in order to gain an organisational perspective of the implications of social media  Semi-structured interviews, so feel free to ask your own questions and add anything you feel may be of use throughout the interview  Thank you for your participation and taking time out of your schedule to meet with me Actual Interview From a general perspective how do you feel social media has effected the way companies promote and manage their brand? Do you feel it has had a positive or negative influence on the Clubcard loyalty scheme? What are the most common platforms that the loyalty team look to promote/monitor their offerings through? Do you feel that social media has allowed for the loyalty team to analyse the response of their offerings more effectively? Is there any particular instance you can remember social media having a negative effect on the Clubcard loyalty scheme? (If yes, how did you handle this) Is there any particular instance when you can remember social media having a very positive effect on the Clubcard loyalty scheme? (If yes, how was this reflected?) Do you feel social media will continue to grow and be a permanent influence on day-to-day business? Do you regularly liaise with Tesco Bank’s social media manager?
  • 85.
    85 Do you findit less or more difficult to monitor customers responses to the Clubcard loyalty scheme via social media? If there any issues the loyalty team find in regards to social media and the effect it has on you being able to do your job? Is there anything else you would like to add in regards to the social media phenomenon and how it has affected the way the loyalty team promote and manage their department? Debriefing  Thank you for participating in my research, it is greatly appreciated  Offer a final copy of the dissertation when it is completed, acquire address to send it to  End of Interview
  • 86.
    86 Appendix D: (LoyaltyManager) Interview Transcribe Wednesday 26th February 2014 Loyalty Scheme Manager (3pm-3: 30pm) Location: Tesco Bank Haymarket, Edinburgh (Conference Room) Participation Information sheet and Consent forms passed out and signed by all parties involved prior to the interview starting Interview Begins Researcher: Good afternoon, and thank you for participating within my undergraduate dissertation research project. Participant: Good afternoon, very happy to help. Researcher: OK, so the first question is, from a general perspective how do you feel about social media and how it has affected the way companies promote and manage their brand? Participant: Eh… I think social media is an interesting one. You know if you look at the rise of it over even the past five years, it’s been phenomenal and you see how companies start to use social media in a really positive way. For example some of the viral campaigns they’ve been able to do, you would of traditionally been able to deliver that through traditional marketing channels. Researcher: Yes, absolutely. Participant: I think from a bank perspective its slightly more difficult, so in terms of brands that customers would choose to interact with, Bank isn’t necessarily one you think about in a positive fashion. So it makes it difficult for us in terms of what our social media strategy should look like. Researcher: So in a general perspective you think it has had a positive influence, however for the banking industry it has been more complicated, in regards to actually promoting your message to consumers? Participant: Yeah… difficult in the sense of trying to strike that balance. So… we’re a bank but we’re part of a retailer, there’s also perceptions in the market of both financial services and Tesco unfortunately, that you kind of compete with. I think whilst social media offers you, from a customer perspective a chance to interact with that business and for us from business perspective to be closer to our customer; it also opens up a really negative connotation at times.
  • 87.
    87 Research: Yes, Ican understand that. What would you say are the most common social media platforms that Tesco Bank uses? Participant: So in terms of where we see our regular reporting coming from its Facebook and Twitter, not surprisingly and I’m sure our social media manager will go onto talk about it with you later, but we see a weekly report that looks at the number of mentions across a whole range of different topics, and captures whether they are positive, negative or neutral. Researcher: So do you feel that social media has allowed for the loyalty team to analyse the response of their offerings more effectively? Participant: I think it’s given us… maybe not more effectively… but it gives us a more immediate insight. So… traditionally when you run a campaign, you might have to wait 8 weeks and then you would see what the redemption rate is or you might have to wait a year and see whether that customer stays with their policy. Where as for us now, we can see that instant reaction and sometimes that’s because we’re driving customers to engage with us socially, so we might put like a hashtag (#) on a piece of work or it might be that they’re proactively responding to what they perceive as a ‘kind gesture’. For example, we are running a programme with the pet insurance department, where we send out birthday cards to the pet. Researcher: oh really…that’s a brilliant idea! Participant: Thank you, it was one of my own ideas (Laughs) Researcher: No honestly, its really good, cause I’ve got friends who don’t only treat their animal as a pet, but as part of their family, so that personal aspect attached to their pet insurance, that’s the kind of thing that makes the difference. Participant: It’s a nice piece of work actually to do, cause if you think about most banking products their quite functional and it’s hard to get the sort of emotional engagement and that’s where its important for us. So the birthday card gives us an opportunity to send a card to the pet, personalised with the pet name, it talks about giving the voucher to their owner to buy them a treat… Researcher: Oh that’s really good... Participant: So it’s all kind of done in that style. So we’ve got a hashtag for that ‘#tescopetbirthdays’ and we’ve seen a really great response on social media of customers taking a picture of the card, and you know like sharing it or taking a picture of what they’ve bought for the pet with the voucher that we’ve given them. So we have worked along side the pet category to give them like an unconditional pet coupon to spend in-store on their pet. Researcher: That’s really nice… Participant: Yeah so it’s quite a nice idea. It also brings us together with the main business, but again from a social media perspective we’re seeing that instant reaction, cause on a weekly basis we’re able to see the response we’re getting from customers.
  • 88.
    88 So it hasit’s benefit for us, in that the customer is responding really positive to it, unless the pet has died…. which we’ve had two cases of unfortunately. Researcher: Oh really, that’s unfortunate. Participant: So from that we’ve seen the negative response that’s came out of it. But equally from a business perspective it helps us further engage with the pet category so for them to provide funding, they’re seeing the customer response and that kind of engagement. So I think that’s where social media can play a role, not just in the brand comm’s but in the sort of overall, ways of bringing the business together. Researcher: So I know you touched upon it, but in regards to social media having a negative effect on the Clubcard loyalty scheme, how did you handle this? Participant: Well yes…in the instance of the pet birthdays where the pet had died, we took all reasonable steps to ensure that our data was as up to date as possible, and essentially we know that there’s a lag time of I think five days, where the pet could have died, we wouldn’t pick it up and that card would be mailed. However when we measure that risk, it’s so small that we don’t expect it to be an issue but yes for one particular customer they went on Facebook and had a lengthy rant about how insensitive it was and you know I think kind of missed the sentiment. Again its that balance of we’re trying to engage with you (the customer) we get that its something quite emotional. So where it’s a death it’s a little harder to deal with, and we’ve kind of taken the hit on that. Researcher: Yes, I can imagine that being quite a sensitive subject. Participant: In terms of response, from a campaign management perspective there’s not really much more we can do, as we’ve already thought through those exceptions. In terms of how we respond to the customer, we have a social media team, so not within the bank, but within Tesco that are set up to respond to customer interactions. So… if its someone that’s on saying ‘yay, just got a great deal at Tesco pet insurance’, we would have someone that would provide, you know quite a generic response or at lest acknowledge it. As again its about bringing customer and business a bit closer together. Researcher: Yes, absolutely. So what do you think about that from a loyalty perspective? Participant: Loyalty is driven by engagement and it’s those kinds of touch points. So if we can engage with our customers with our customers the right way, and talk to them in a way that’s meaningful and give them something that rewards them in a genuine way, that sort of brings it full circle back to loyalty. Then that’s how we start to move them through, and I think that’s how social media can help to give us a measure of that. Researcher: So almost like giving the brand a personality and allowing consumers to feel more connected to the brand, via personalised vouchers etc. I think that is a great aspect of the Tesco Clubcard loyalty scheme as it gives the brand a face, and allows for consumers to connect on a far more personal level.
  • 89.
    89 Participant: I thinkwhat has been quite interesting, I saw one recently where I think it was Tesco Mobile Customer Service and a couple of the other ‘handles’ (@...), and they were interacting with each other? Researcher: I’ve seen that, it involved Tesco Mobile Customer Services, Yorkshire Tea, Cadburys, Jaffa cakes and a few others if I remember correctly? Which I thought was brilliant. Participant: Yes that’s right! Researcher: I thought that gave a real life like feel to all the brands involved, as they were all interacting with each other and making jokes and customers really respond well to that sort of thing, which is what social media is really great for I think! Participant: Yes I agree, I guess the flip side of that though is, the number of times I then seen that conversation shared on my news feed on Facebook was unbelievable. And it’s about how that then starts to drive that ‘buzz’. Researcher: Yeah Absolutely! Participant: So there’s two parts, you might have a perception of Tesco, or Tesco Bank as being a bit dull, and it’s a bank or whatever. So there’s one view, or you might not have an awareness of us at all, that’s something that we also compete with. So I think by sometimes showing that slightly more human side, again from a business perspective that helps massively with brand. Researcher: That’s very interesting. Are there any other than campaigns other than the pet insurance one we spoke about earlier, that you feel have received a very positive reaction via social media? Participant: Yes, there has been another programme that we’ve run. What these campaigns help to do is create ‘advocacy’ and we can’t buy that kind of exposure, so it’s valued by the brand. We launched a campaign about two Christmas’ ago, and this was an overall Tesco programme that the bank were part of, it was called ‘Love Loyals’. It was basically, we looked at it within a couple of different product areas within the bank, and we identified customers that had either been with us for a long period of time or… I guess customers that were generally more loyal. Researcher: OK, and what kind of reward did you offer customers? Participant: Well with car insurance for example, we sent customers an ice scraper through their door, and a voucher for de-icer, with just a wee card and with the strap line ‘Just For You’. Again from a social media perspective, what we were seeing from customers was ‘Thanks Tesco for thinking about me’. Researcher: It’s the little things like that, that do help you with retaining customers I’m sure. Participant: Yes, just the little kind intentions count. Equally with credit cards, we offered them either champagne or chocolates and again it was just a thank you for
  • 90.
    90 choosing to bea customer. I think social media is so often used as sort of a ‘boast’, a sort of ‘look what I got’… Researcher: Yes that’s very true… Participant: …and whilst we’re not doing it because we want customers to boast, we are doing it for that simple thank you, it’s almost an associated benefit. Researcher: Absolutely, as it builds awareness and the customer promotes Tesco by promoting what you have rewarded them with, it’s a very clever idea. Participant: So in an ideal world, a customer would post a picture of the champagne with a ‘thanks Tesco’, one of their friends or followers asks ‘how did you get that?’, they respond with ‘I got it for being a Tesco Bank credit card customer’, prompt, ‘I should go have a look at how I can get involved in this’. Researcher: That’s a very good way to look at it. So do you feel social media will continue to grow and be a permanent influence on day to day business, as there are mixed opinions of whether or not the likes of Facebook will last? Participant: I think it will still be a prominent part; any change will be useful I predict. I don’t know about you but I find it hard to imagine life without Facebook, as its something I check multiple times throughout the day just out of curiosity to see what’s going on…(Laughs) Researcher: (Laughs)…yes I’m guilty of this too. Participant: So being in that habit it’s quite hard to break that cycle. For other social media platforms coming in, for example Snapchat, Whatsapp, etc., I think there will still be social media but just in a different form. So for us as a Bank, it’s about how we develop a strategy to work with that. Certainly over the last few years, we haven’t had a social media strategy as such, and a lot of that has been driven by the fact that we’re quite ‘risk averse’, so we don’t want to open ourselves up to that kind of exposure, without being clear about how we would manage it and how we would use it. But yeah, I think we will change with the times though, if you look at the loyalty scheme just now, which are delivered through email, now that’s great for a time, but that’s not the future. I want to be able to send it to customers through the app, which they’ve downloaded on their phone, and how they interact with the scheme from there. Researcher: Yeah, that sounds to me like a very forward thinking and positive vision to have. Participant: Yeah, I think it’s a natural development we would have. Researcher: Has there been any campaigns in particular that have caught your eye from other companies that you think could be utilised within the Tesco Bank setting? Participant: Well, I don’t know if you saw it, I think it launched just prior to Christmas 2013. It was ‘West Jet’ airlines in America, they asked all their customers prior to boarding one of their flights what they would like for Christmas, and when
  • 91.
    91 they had landedall the gifts were coming through baggage claim waiting for the customers? Researcher: Yes, I thought that was wonderful, such a nice idea and very sentimental. Participant: So taking that kind of idea, of asking a question and finding a way to deliver it to them, so not necessarily doing it in the same manner…. Researcher: … but taking the positive aspect of it and making it your own? Participant: Yeah Absolutely. Researcher: That’s another great aspect of social media, because it does spread so quickly, a lot of companies can get different ideas from each other and taking one idea and improving upon it, so that the hype from the original idea is almost over shadowed by the company who have bettered the idea? Participant: Well yes exactly, I mean I hope I’m not taking you off track here but I used to work for T-Mobile… Researcher: No by all means carry on… Participant: Well just as I was coming to the end of my time there, there big campaign was the ‘flash mob’, at Victoria station down in London. I think that was the first time that had been done on TV, and the purpose of it was less about the actual dance itself, but as they were filming round in the crowd, it was everybody with their phones out filming it themselves, and again its that immediacy of guessing that message out. So what’s a flash mob got to do with T-Mobile? Well nothing. But T-Mobile gives you the power to share that moment, and that’s the connection. Researcher: Ah, that’s brilliant. Very Clever. Participant: … and when you see how often that is now used, I mean your right people have taken that idea, in fact West Jet did a flash mob the year previous, the same kind of idea. You can get away with it; immediacy is a key thing in terms of how customers can take it out. Researcher: So do you regularly liaise with Tesco Bank’s social media manager if you had new offers rolling out which you wanted to have a positive impact via social media? Participant: It’s not something we do regularly, but I think we’re probably starting to move into that sphere. For example with the fourth coming launch of current accounts, that’s a great way for us to get the message out to a really wide base, really quickly. As well as perhaps giving us the opportunity to do it in a different style, so it’s not just your standard poster in the window, its about how can we use that whether its through a game or an app, or just simple messaging to really amplify. So the launch of current accounts is really been the first time we’ve actively looked to do it as part of a campaign, we kind of dip our toe a little bit in it. For example if you were to put it up against what Tesco do as a main business, we’re a drop in the ocean,
  • 92.
    92 but I thinkwe will eventually start to see it as a bigger part of what Tesco Bank do as a business. Researcher: Yes, this is why I wanted to focus on the banking industry for my research as I know there are more obstacles for the banking sector in regards to regulation and compliance, that what other businesses maybe come up against when incorporating social media into their marketing strategy. So I’m looking for that contrast, as a lot of the information I’ve found so far isn’t from a banking perspective, as it is such a new phenomenon. Participant: Definitely it’s a fine line to tread, I’m sure you would have seen this yourself being an employee of Tesco Bank. With the guidelines that come out every Christmas explaining what we can and cannot post as staff, on Facebook or through any of the feeds. We’ve got to be careful we’re not disparaging about our employer, or disclosing any sort of sensitive information. Researcher: Yes absolutely… Participant: There’s also a lack of awareness from a customer perspective that we capture what they say? So obviously it depends on your privacy settings, but we get the verbatim quote, and it tells us whom that person is. So for example if I was to go onto my Facebook and say ‘Tesco Bank are a shower of terrible people’, the words ‘Tesco Bank’ would trigger it, and my comment would come up. So that’s all noted in our weekly reports. Researcher: So do you find it less or more difficult to monitor customers responses to the Clubcard loyalty scheme via social media? Participant: Yeah I’d say this helps in a more positive fashion, as you get a truer sense, when your posting on social, you’re not doing it with the question in mind. So for example when you get a questionnaire to answers, its quite structured questions, and its only allowing you to think between these boundaries. If I’m ‘tweeting’ (posting via twitter) for example, I’m doing that about how I genuinely feel and not with anything else in mind. Yeah I think you get a truer, possibly harsher measure sometimes, but I think that’s probably what we need to see. Researcher: Yeah definitely, and I think that’s really beneficial if you are getting a true response, as it can only help the business improve. Participant: I think the other thing that comes to mind; you also get responses in the heat of the moment. For example, people taking to social media and not necessarily thinking about the repercussions of their actions. Again that’s where, that’s where you would need to take some of the negative comments with a pinch of salt. Researcher: Yeah from working in the call centre in the credit card department, sometimes customers don’t give you the opportunity to explain and rectify the situation before they want you to close their account, or become very angry. Participant: Yeah it’s almost as if you only see that one viewpoint, it’s a snapshot reaction of an otherwise very happy customer. However I think what we need to
  • 93.
    93 concentrate on isshowing our customers that we are willing to engage with them, and respond to those kind of criticisms, which I think our social media team within Tesco Bank do a very good job with. Researcher: I think the fact that you as a Bank respond to your customers via social media, and have established yourself on social media is great. Especially with the loyalty scheme in place, it gives you an edge over other banks who maybe don’t have something similar in place. Participant: Well yes, that’s what we are trying to achieve. Researcher: Well, that’s us pretty much covered everything, is there anything else that you want to add about the social media phenomenon and the way it has affected how the loyalty team manage and operate their department? Participant: Eh… no I don’t think so. Other than the fact, its probably one for the future for us…. Woman enters the conference room Participant: (Whispered) We’re just doing an interview…. Woman leaves the conference room Participant: … its just … eh … thinking about some of the programmes we have on at the moment, and how would we take that onto the next level via social media. Certainly within a loyalty perspective, it’s a future platform, but future as in the next 6-9 months and we just need to get to grips with it. Researcher: Yes, I guess because it is such a big phenomenon and does affect so many different aspects with the business, you do need to sit down and really have a forward plan to follow. Participant: Yes absolutely. Researcher: Well thank you very much for your time, your insight has been brilliant. Would you like to see a copy of the final dissertation? Participant: My pleasure, and yes that would be great. END OF INTERVIEW
  • 94.
    94 Appendix D: (SocialMedia Manager) Interview Transcribe Wednesday 26th February 2014 Social Media Manager (4pm-4: 30pm) Location: Tesco Bank Haymarket, Edinburgh (Conference Room) INTERVIEW BEGINS Participation Information sheet and Consent forms passed out and signed by all parties involved prior to the interview starting Researcher: Good afternoon, and thank you for participating within my undergraduate dissertation research project. Participant: Good afternoon, very happy to help. Researcher: So the first question is, from a general perspective how do you feel about social media and how it’s affected the way companies promote and manage their brand? Participant: That’s a good question. So from a banking perspective its thrown up a lot of questions and I suppose a lot of concerns, because I think people aren’t stupid, organisations know a lot of their consumers are on social media channels and obviously it gives them another channel in which they can potentially market and talk to their customers through. I think when it comes to Banking, there is a lot more to think about, from an organisational perspective there are a lot of question marks about how do we enter the market? What are the best channels we should use? What are the implications of entering those channels from an operational perspective, as well as a compliance perspective? Because obviously there are so many things around risk and legal, all of our marketing assets that go on any other channel need to be signed off by financial promotions, some of them need to go through legal. So what implications does that have, would we need to get every single post that we signed off on the Facebook page for example, by those channels. So I think it’s exciting for organisations, from a banking perspective it does present itself as a step into the unknown I guess? I mean Tesco Bank have been quite slow in getting into social media, and there are banks out their like Barclays and American Express, who do a lot in social media. But I think there’s a lot more thought that needs to go into what your presence looks like on social media platforms and what you want it to be for. Researcher: So would you say its had more of a positive or negative influence on the bank? Participant: Oh I absolutely think positive! Because I think from a broader perspective it’s really got the banking industry to be a bit more forward facing and a bit more innovative. Had it not been for social media, we probably would have continued the
  • 95.
    95 same route we’vealways gone down, and obviously with banking in general there is a real, maybe not so much now, but especially after recession that whole sort of…. Researcher: Stigma? Participant: Yes absolutely! A huge stigma around the fact nobody knows where your moneys going, what’s being done with it and that nobody trusts banks. Researcher: Everybody’s kind of protective and keeps everything close to their chest? Participant: Yes, however with social media you have to be much more transparent, you have to be open, you have to be honest, you have to be able to respond to customers quickly and so its actually got banks thinking, I think, about how they need to portray themselves as a brand. They can’t just be this closed wall, where they don’t give anything away, because they know that customers don’t trust them and its not going to be the way to earn their trust going forward. So I think social media has given them something to think about in terms of connecting with customers on a more…. Researcher: Personal Level? Participant: Personal Level, exactly! Researcher: Well there is that whole shift in paradigm from transactional marketing, to relationship marketing… Participant: That is exactly it! Researcher: So customers want to feel more connected to the brands in which they buy from. Participant: Exactly, and its how much does that extend into banking, which is what will be interesting about your questionnaires that you do. As it will highlight key issues about what consumers want from banks? As some institutes lend themselves so well to social media, and of course they want to, if it means connecting with the consumer on a more personal level. With banking its just getting that balance right between if customers want to talk to us through these channels we should absolutely be there! However on the other side, banking is a much more serious thing, its people money, so there’s a different tone about it. So I guess again its just thrown up, good challenges about how do we want to represent ourselves on social channels? As it’s a space where customers are in during their own free time, they’re speaking to their friends, how do banks fit into that, and speak to them in a way that still shows that their a trusting bank but also kind of shows that they are not so boring…. Researcher: … Giving the bank more of a personality almost? Participant: Yes that’s exactly it, so I would say positive overall (Laughs) Researcher: (Laughs) Excellent, so what are the most common social media platforms that Tesco Bank utilises?
  • 96.
    96 Participant: Facebook isthe main one, and especially for Tesco Bank, probably the main reason for that is because Tesco have one and we are a bank but we are a retail bank and therefore we do kind of take a steer after whatever group do. From an operational perspective, we use Twitter a lot; we get a lot of queries and complaints through that platform, so it is a great way for us to be able to communicate back to those customers. They are really the only two channels we are active on, those are the two big ones that started everything off. However I know there are a lot of question marks around the fact that people are now moving away, particularly the younger market… Researcher: Oh I think we’ve read the same article, did you see that study that Sky News posted about the fact that 80% of Facebook users will have left by 2017? Participant: Ah, yes I did (Laughs). So its almost like, because we haven’t got into it yet, do we really need to take a step back and go right our social strategy shouldn’t just be for Facebook or should we be covering all new emerging social media platforms and what kind of content and how do we want to use them. Researcher: I understand. For my researcher because there is so many social media platforms, I did need to sort of refine it a little bit. So I picked as you can see from your participate information sheet, Facebook, Twitter and LinkedIn, so that’s great that Tesco Bank are present on two of them. Participant: I suppose in a way, its not sad, but going down the Facebook and Twitter route, its almost becoming old and traditional. It’s almost as if banks are like ‘oh we can do this now’ and jumped on the band wagon, but its almost as if its moved on again. Researcher: Yes, it is very fast paced I think. There are always new platforms coming out, and now older generations are now joining the links of Facebook and Twitter, young adults are looking for something new constantly. Participant: (Laughs) Yes I know, I think any bank that can get it right and be ahead of the game and be in the places where their customers are, and maybe it is Facebook and Twitter but if it’s the likes of the younger generation they’re going for they need to be ahead of the game and know where people are moving to. Researcher: Absolutely! So is there any specific software that you utilise in order to monitor the brands image via social media? Participant: Yes we do. So at the moment, we use ‘Brand Watch’, which is a very well known big social media-monitoring tool, and we are constantly in that keeping an eye on what people are saying about us. We also have a tool that allows us to respond to customers, so you can do that through ‘Brand Watch’ but because Tesco group use a separate tool we go down that route also and that tool is called ‘Conversocial’. That is a tool that allows us to monitor any mentions of where people either use the twitter handle ‘@Tesco’ or any of the other affiliated ones for bank, and then we’re able to respond to customers via that tool, so that’s the only two that we use.
  • 97.
    97 Researcher: So doyou guys produce like a weekly report or an update, from the responses monitored via those tools? Participant: We do! So with the output of ‘Brand Watch’, we actually have a social media agency and they kind of run it for us, although we have access to it, and they provide us with a weekly summary of what has been going on, split by different products, so for example depending on who you are you might be interested in insurance vs. banking, and that’s circulated around the business, all the way up to executives and all the way down to employees working with that kind of thing on a daily basis. Researcher: That must be really helpful… Participant Well we’re trying to push it! We’re going to be sending out a monthly report to the senior executives, in the hope that we can get more interest from the higher levels that will hopefully get them to really take social media seriously, it terms of the insight they can gain from it or the way they could be improving their products or how operations should be working and that sort of thing. Researcher: How do you think the senior executives view social media? Do you think that its been viewed as something to watch, or has the company just signed onto it because everyone else is doing it? Participant: That’s a really good question. I would say the company aren’t still 100% bought into it, although there are certain areas of the senior executives that are getting more excited about it, obviously the senior marketing executive is getting more excited about it, but then there are other areas that are little bit more sceptical and are more worried about the implications of using it, the risks involved etc. So I think there’s still a little bit more work to be done with the senior executives, so I definitely think this report could help. Researcher: Yeah Absolutely! What do you think the biggest obstacle Tesco Bank faces when promoting themselves through social media? Participant: This is a very good question. Well I guess, like we do with any sort of marketing channel, we have to make sure that what we’re putting out via social media is factually correct, its gone through all the usual compliance bits and pieces we need to go through. Social media is quite difficult for us, as its usually space restrictive, and you can imagine with financial services, we have a huge amount of T&C’s (terms and conditions) so that can be a bit problematic. The other thing that’s posed quite a lot of issues recently, again its maybe not a banking issue, but banking will take it more seriously potentially, is that a lot of social media channels are going down much more targeted approaches when it comes to using Facebook or Twitter for advertising. So you can do a thing called ‘Custom Audiences’ on Facebook, so you can actually say that out of all the people on Facebook you want to target a specific audience, and that audience rather than it being based on your interest which is what traditional Facebook advertising used to work, you actually go these are the people I want to target, are they on Facebook, and if so, this is the message I want to send to them.
  • 98.
    98 So there isa lot of things around data privacy, on the back of that as you can imagine, basically at the moment, lots of old data policies including the ones on Tesco Bank’s website and Tesco, when you opt into marketing you don’t opt into people using your data for online purposes, its only via email, SMS etc. Researcher: Yes I am aware of this from doing credit card applications over the phone when a new customer calls in, we should ask them if they can be contacted via social media or if there data can be used in that way… Participant: Absolutely, so you know exactly what I am talking about. So there’s a whole big question around do we need to update… bearing in mind that all these social media channels are coming in, we have the ability to really target our customers through them, through them and to serve them with relevant messages. You know should we be looking to update our data policies so that we can ask people if they are happy, and if they are then if we can use it for that. So that will be really key, I think anything like that going forward, because everything is moving online and social channels its going to be really important…. Researcher: …Yes absolutely! Especially with the likes of mobile banking for example? Participant: Exactly! Researcher: So have there been any specific instances where you can remember social media having a negative impact on the Tesco Bank brand, and if so how did you manage that? Participant: Yes, good question again! So there’s been nothing huge in the social media, which we’re very lucky about, and that’s probably because we haven’t done huge amounts in social media, so we haven’t exposed ourselves to that. However we obviously do still get complaints through social media and there have been in the past some very irate customers or even who have taken their story to the press, so then its been in there and then people have then tweeted about it. I think eh, one example (Laughs), which is probably the most high profile and it isn’t even that high profile is… Keith Chegwin? Researcher: I recognise the name, but can’t place his face? Participant: Well he’s like a D-list celebrity, but anyway he has a lot of followers on Twitter. He has car insurance with Tesco Bank, and basically there was something that didn’t go right, with a claim, I can’t fully remember but he ranted about us for quite a while. Which got the attention of the upper management (Laughs), to think right we need to sort this out, so it wasn’t anything massive but I think that is just a factor of we haven’t done that much on social media yet. We do try to mitigate if there is anybody really ranting, obviously we would do that with anybody but we have had a few people who have really went on and on and on. Researcher: So I know like a lot of companies employ like an immediate response so that if you are contacting them directly, the will always respond to you, do Tesco Bank employ something similar?
  • 99.
    99 Participant: So theway that it works when we contact our customers is it goes through ‘Conversocial’ and there’s a team down in Cardiff that do the actual responding. So if its out of the hours of 9am-5pm, the customer will still get a holding response, which would read something like ‘Thank you for your tweet, Tesco Bank’s team will come back to you as soon as they can.’ So we do try to get back to our customer’s even if we’re not physically here and then it will get picked up when somebody is back in the office. Researcher: That’s very positive, as a lot of customers are using social media these days purely to get in touch with the brand. Participant: I suppose that’s maybe the other bit that bank’s struggle with compared to some other companies, its not as easy for us to just come back within minutes, because often we have to go away and investigate what the problem is and how things were handled and follow certain processes? Researcher: Yes I know exactly what you mean from my experience of working in the call centre in Tesco Bank, for example refunding interest, there are all these processes you need to follow and investigate before you can do that. Participant: Yes exactly, so you completely know where I am coming from (Laughs). So it is really good that we have a response team in place for that kind of thing, however the only thing that I would say we need to work on or think about is that currently we don’t have our own handle on Twitter. So there is a @TescoBankNews, which is technically the PR department, and it’s more for corporate responses rather than anything else. However if anything was to come through to them, it does get passed on to the team who respond, but you know its that question mark about we’re not shouting to the world at the moment that customers can get a response through Twitter, if they do come to us they will but that’s kind of a Phase two plan. Researcher: So you said that Tesco Bank don’t have their own separate handle on Twitter, is that something you are looking to bring in or are you happy to just run off the bank of Tesco retail’s twitter handle at the moment? Participant: At the moment it is working fine from using the retail handle, and I think that’s just because the people who have pro-actively wanted to get a an answer on Twitter have found it and have gone down that route. I think if we were to start promoting the fact that people can get help via Twitter, I think we would seriously have to consider our own handle because it just makes more sense I think? Researcher: Yes, keeps everything in the one place and easier to monitor? Participant: Exactly, cause you can imagine the amount of retail queries and concerns that come through on their own handle, for example ‘where is my online shopping order?’ etc. So it’s a question mark at the moment because there are huge amounts of resources required for something like that, but we want to be a forward facing bank so I think it is something we need to implement and with new products that we are bringing in, you know the bank is growing.
  • 100.
    100 Researcher: Yes absolutely!So just on the flip side of that, are there any specific instances where you can remember social media having a positive impact on the Tesco Bank brand? Participant: Eh… I’m trying to think of like a really nice example of something big, because we do get customers coming back to us and will say thank you for things. I think there have been some quite nice ones around; we seem to do really well from an accessibility perspective. So we’ve had some really nice tweets from customers, who are deaf for example, who have complimented us on our services for example Mincom, and there’s various other bits and pieces on the site that make it really accessible for them. That’s then been ‘re-tweeted’ a number of times and other people have picked up on it and been like ‘oh that’s great news’, and then passed it on to future customers etc. So that’s been nice, there are lots of examples of people saying thank you, I don’t think there’s been anything… I guess we get positive reviews off the back of it… Researcher: … Yes I mean I guess that just comes with the fact that Tesco Bank are fairly new to social media, once you have established yourselves a bit more there will be more opportunities presented for you to promote yourself in a positive light. Participant: Well yes that’s exactly it, I mean I know we’re going in that direction cause I know we’ve just started, the PR department upstairs, the corporate communications people have just started a Website, a Facebook page and a Twitter handle for Tesco’s Bank community effort, cause we do huge amounts, and up to date we haven’t really talked about it and I think that’s really where you can get some great positive PR. So I hope we will see more coming, watch this space! Researcher: That’s a really good idea, and I’m sure we will! So not going into any specific numbers, but would you say that you are allocated a sufficient budget in order to manage Tesco Bank’s social media presence? Participant: For what we are doing right now, yes! If it needs to grow…then no! (Laughs) So it really depends on what direct it goes in, its pretty small scale at the moment, I mean ideally I think we would have our social media team if we were taking it seriously and obviously its kind of managed on the side, and I think most bank’s would probably have people dedicated to it and we don’t really, we kind of piggyback of the back of dot com (Tesco Retailer). It’s been fine to date, its manageable but I think when for example current accounts launch, then yeah there will be much more need for a social media team. Researcher: It’s really interesting because Tesco is such an established name, so I think a lot of people would just assume that Tesco Bank would have a full social media team, so it is really interesting to see how everyone is adapting in their own way to the phenomenon… Participant: Yes it really is! Researcher: So with that being said, do you feel that social media will continue to grow and be a permanent influence in day-to-day business life?
  • 101.
    101 Participant: Oh, Ithink its here to stay! I think you picked up on a really good part earlier, when you talked about relationship marketing and that really is what social media helps you to do. I just think we’re moving away now so much from traditional marketing and media, and its all going towards kind of telling a story, and as you said building those relationships with brands and that’s how consumers are going to want to talk to people and will build up affiliation’s with companies going forwards… Researcher: … Well yes, it’s moving towards more of a brand monologue now, rather than a brand dialogue isn’t it? Brand’s aren’t just talking to the customer and telling them what they should be spending their money on… it’s a conversation. Participant: … it’s a conversation, yes exactly, it really is! And that’s how we’re going to bring in new customers and keep people loyal, it is going to be really key for that. So there’s absolutely a place, I don’t know if it will be with Facebook and Twitter and who knows what is around the corner in terms of social media but it will be some form of that definitely, going forwards. Researcher: I agree with you. So would you say you find it more or less difficult to monitor customers responses via social media in comparison to other channels? Participant: Well I’m a huge advocate of social media, I think it’s a brilliant way to get real time information on our customers and what they are thinking and what they are not happy about, it’s a great gage of sentiment. What I will say is that you have to take it with a pinch of salt, because you get the people who rant and the people who love you, it’s a temperature check and I think it highlights the things that need to be improved more than anything, and if you get enough volume through of those people who are saying the same thing, then that should tell you that your product or whatever the issue is, needs to improved. So I think its much easier as well for people to just jump on social media and tell you what they are thinking, rather than having to fill in a form or do a survey etc. Researcher: Yes absolutely, your colleague pointed out earlier that with the likes of a survey its set questions and you’re very much restricted to the kind of information you allow the customer to provide, where as social media its an open space, and you can give back to the company genuine feelings and concerns. Participant: … yeah and you can go back and ask more, and really get a conversation going, it’s much more fluid through social media, than with traditional methods. Researcher: Yes that’s very true, so would you say you regularly liaise with different departments regarding social media? Participant: Hmm… more and more now yes, and I think that is a result of the weekly report we send out, because that just got peoples attention in terms of realising that people are talking about us on social channels. So various departments after sending that out will come back to us, and ask various questions about ‘what happened to that tweet with our product’ etc., or what are you doing about this. We also use the credit card report as part of the ‘TCF’ (Treating Customer’s Fairly) monthly forum, so it’s nice that its being fed into that in terms of how much negativity are we seeing coming through on credit cards, month on month, is it going down? And if it is why is the
  • 102.
    102 negativity going downetc., so that sort of thing! So more and more people are becoming interested! Researcher: So sending that weekly report out has really benefited the business in regards to getting different departments involved with the social media aspect? Participant: Yeah absolutely, it could be much better though! Researcher: Great! So in your opinion what are the most useful and least useful aspects of social media, it can be in a general perspective or a banking perspective? Participant: (Coughs)… So most useful and least useful aspects of social media... Eh... so I would say most useful if we’re able to with the way the data privacy, is going to be the way we can target exactly who we want to target with a really relevant message. I think now people see so many adverts, thousands a day… Researcher: … they are almost immune to it? Participant: Yes they don’t see it! So if you can target and be really relevant to people and give them what they want, in an ad in marketing, then I think that’s the way forwa…rd… (Coughs)… Sorry! Researcher: No problem! Participant: I think that’s really important, so it terms of least useful, hmm… I suppose, its not that it’s least useful, it just causes the most problems is just the fact that customers can rant and can quite easily damage the reputation of a brand and it might not even be correct. But they have a voice, which is brilliant! But sometimes, it might not be correct, and I its just having to manage and control that, and be aware of it and have things in place to be able to deal with that. So it’s not that it’s not useful, it is, cause we want customers to be telling us what’s wrong, but if there was something that got out of control or wasn’t correct and was damaging the brand, I suppose that’s quite difficult to manage. Researcher: Definitely! Especially because there are SO many people on social media… Participant: Exactly… Researcher: … its almost hard to keep in contained? Participant: … yes exactly! Researcher: So just to finish off, is there anything else you would like to add in regards to the social media phenomenon and how it has effected the way companies promote and manage their brand? Participant: I think just in general, I mean I’m on social media and I think its just allowed brands, I think its lovely, I think its allowed them to have a human conversation with people, its actually made me warm to brands a lot more. I mean not all brands are doing it right, and I think that’s where you’ve got to be really careful
  • 103.
    103 with that, andI think Tesco Bank have to be really careful with that being a dry banking industry. But certainly I just think if companies can do it right, and they can give be content that I’m interested in and that I want to share, and that sort of thing and I’m all for it! And I think the more companies that can do that the better, and build relationships with their customers and really understand what their customers want; I think it can only be a good thing. So I’m excited about it! Researcher: Excellent! Well thank you again so much for participating, I already spoke to your colleague about sending a copy of the final dissertation when its completed for both of you to have a look at if you’d like? Participant: Oh yes absolutely! I will email you the full address to send it to? Researcher: Yes that’s perfect! END OF INTERVIEW
  • 104.
    104 Appendix E: Brand LoyaltyBrand Awareness Relationship marketing Immediate insight Effective Communication Negativity via social media Compliance issues Unity amongst departments Appendix F: (Loyalty Manager) Only Participant Responses Rise of social media over the last five years is phenomenal. Seeing companies starting to use social media in a really positive way, for example viral campaigns. That company’s wouldn’t have traditionally been able to deliver. Banking perspective it’s slightly more difficult. Bank isn’t necessarily a brand customers choose to interact with, nor is it thought about in a positive fashion. It makes it difficult for us to determine a social media strategy. Social media is difficult in the sense of striking a balance, because Tesco Bank is a retail bank. There are perceptions of financial services and Tesco to compete with unfortunately. Customer perspective they can interact with that business, from a business perspective brings us closer to the customer, can open up a negative connotation. Regularly reporting comes from Facebook and Twitter, weekly report produced which shows mentions across a whole range of topics, positive, negative or neutral responses. Social Media gives loyalty scheme a more immediate insight, which takes a lot longer with traditional marketing campaigns. We get to see that instant reaction, sometimes that’s because we’re driving customers to actively engage with us socially. Some proactively respond to what they perceive as a ‘kind gesture’. Pet Birthdays; send pet a card with a voucher, if they have pet insurance with us. Most of the work we do is quite functional and hard to get that sort of emotional engagement - which is important. So the pet birthdays gives us the opportunity to do so. We’ve got a hashtag for it “#tescopetbirthdays’, seen a really good response on social media, with customers sharing or taking pictures of what they’ve bought with the voucher.
  • 105.
    105 Brings together loyaltyscheme with the main business, social media gives that instant reaction, as on a weekly basis we’re able to see the response we’re getting. Have had negative responses for instance if the pet has died. From a business perspective helps us further engage with pet category, they provide funding, and they’re seeing the customer response and that kind of engagement. Social media can play a role in not just brand communication, but over all bringing the business together. Took all reasonable steps to ensure our data is up to date, but a lag time existences in a pet has died, for us to get that data, in which time the card could have already been sent. Measure that risk, it’s so small, don’t expect it to be an issue. Customers have taken to Facebook/Twitter and ranted negatively, and missed sentiment almost. From a campaign management perspective not really much more we can do, as we’ve thought about exceptions. In Terms of responding to the customer, Tesco Bank do quite well in that area to give at least a generic response or acknowledgement. It’s all about bringing customer and business closer together. Loyalty is driven by engagement, so if we engage with customers in the right way and talk to them in a way that’s meaningful and reward them in a genuine way, then that brings it full circle back to loyalty. Social media can help to give us a measure of that. For example, a few of the handles such as Tesco Mobile Customer service were interacting with each other, and that conversation was then shared on Facebook repeatedly, and that starts to drive that ‘buzz’. Consumers might have a perception of Tesco or Tesco Bank being a bit dull as it’s a bank or whatever. Or you may have not an awareness of us at all, so by showing a slightly more human side that helps massively with brand. What our campaigns help to do is create ‘advocacy’ and we can’t buy that kind of exposure so it’s valued by the brand. ‘Love Loyals’ campaign included sending gifts to customers who are genuinely more loyal to Tesco. Car insurance for example, sent customers de-icer voucher and a scraper through their door with a car saying ‘Just for you’. Social media allowed us to see the thankfulness and responses from customers. Little kind intentions count. Equally with credit card customers we offered them either champagne or chocolate just as a thank you for choosing to bank with us. Social media is often used as a ‘boast’ or a ‘look what I got’, we’re not doing it for that reason, just for the simple thank you, but it’s almost an associated benefit.
  • 106.
    106 In an idealworld, someone will post it on Facebook what they’ve got, one of their friends or followers asks were they got it from, they say I got it for being a Tesco customer, and that person then looks into becoming a customer. Social media will still be a prominent part in business in the future, although it may be in a different form. For us as a bank it’s about how we develop a strategy to work with that. Hasn’t had one in place, due to us being ‘risk adverse’, so don’t want to open ourselves up to that, without being clear how we manage and use it. In the future want to be able to send out loyalty offers through an app rather than email, to keep up to date. West jet airlines did a campaign where they asked people boarding their fight what they wanted for Christmas and it was waiting in baggage claim for them when they got off the flight. So taking that kind of idea, of asking a question and finding a way to deliver it them, taking the positive out that idea is something we would like to do in the future. Vodaphone also did a flash mob, it concentrated on people who were actually filming it and they marketed it as Vodaphone gives you the power to share that moment, so those kinds of connections are great. Immediacy is a key thing in terms of what our customers can take out of it. Liaising with the social media manager is not something we do regularly, but we are starting to move out of that sphere. With the launch of our current accounts, it’s a great way to get the message out to a really wide base, really quickly, and gives us the opportunity to do it in a different style. Current accounts are the first time we’ve looked at actively using social media as part of a campaign. I think we will start to see it as a bigger part of Tesco Bank’s marketing plan. There is a lack of awareness from a customer perspective that we capture what they say. Depending on previous settings we will get a verbatim quote of what that person has said. The words ‘Tesco Bank’ trigger it and it’s all noted in our weekly reports. Helps in a more positive fashion, as you get a truer response when you’re posting on social media. This is because you’re not doing it with a question in mind. Unlike questionnaires for examples where there is set boundaries. The responses are truer and possibly harsher which is what the business needs to see. You do get responses in the heat of the moment, and for that reason we need to take some of the negative responses with a pinch of salt. It’s a snapshot reaction, of an otherwise very happy customer. We need to concentrate on showing our customers we are willing to engage with them and respond to those kinds of criticisms, which so far Tesco Bank seem to be doing a good job with.
  • 107.
    107 Certainly with aloyalty perspective it’s a future platform, over the next 6-9 months we hope to really come to grips with it. Appendix F: (Social Media Manager) Only participant respondents From a banking perspective social media has thrown up a lot of questions and concerns. It gives businesses another channel in which they can potentially market and talk to their customers through. However what channels to use, what are the implications of entering those channels from an operational and compliance perspective, and areas around risk and legal are just some of the concerns. Tesco bank have been quite slow in getting into social media, a lot of thought needs to go into what your presence looks like on social media and what you want it to be for. It’s got the banking industry to be a bit more forward facing and a bit more innovative. Without it we would have continued the same route we have always gone down. There’s a huge stigma around the fact nobody knows where your moneys going with banks, what is being done with it and that ultimately nobody trusts banks. On social media you have to be much more transparent, you have to be open and honest and be able to respond to customers quickly so its got banks thinking about how they need to portray themselves as a brand. They can’t be a closed wall, as customers don’t trust them, and that’s not going to earn their trust. They are starting to think about connecting on a more personal level. Some institutes use social media as a means of connecting with the customer on a more personal level. With banking its getting that balance right, of if customers want to talk to use through these channels, we should absolutely be on there. As its banking and a more serious thing, it’s a different tone, so we need to figure out how banks fit into the whole sphere of social media and speak to customers in a way that still shows we’re a trusting bank but we’re not so boring… Facebook is the main channel we use, because Tesco the retailer have one, and we’re a retail bank so we take direction from whatever group do. From an operational perspective we use twitter a lot, we get a lot of queries and complaints through that platform and it’s a great way of being able to communicate with customers. As we haven’t got into social media yet, we do really need to think about our social strategy. We need to think about what kind of content we want to put on these platforms and how we want to use them.
  • 108.
    108 Facebook and Twitterare becoming quite traditional now, and its as if banks are now realising that they can get involved in this. With so many new platforms popping up, we need to keep an eye on where people are moving to and incorporate that into our social media strategy. We use two types of software, ‘Brand Watch’ that is a well-known social media- monitoring tool, use it to keep an eye on what people are saying about us, and can be used to respond to customers. However we use a tool called ‘Conversocial’ because Tesco group use it, and it allows us to monitor any mentions where people use the twitter handle ‘@Tesco’ or any of the affiliated ones for bank and we’re able to respond to them via that tool. The social media agency that run ‘Brand Watch’ for us produces a weekly summary of what’s been going on, and that’s circulated around the business. We’re also going to be sending out a monthly report to the senior executives, to get more interest from the higher levels and get them to really take social media seriously, in terms of the insight they can gain or the way they could improve products and operations. The company aren’t still 100% bought into it, there executives for example marketing who are excited about it, but there are other areas that are a little bit more sceptical and are more worried about the implications of using it and the risks involved. We have to make sure what we’re putting on social media is factually correct, has gone through compliance checks. Difficult for us as social media is usually space restrictive and financial services have a lot of terms and conditions, so it can be problematic. Social media channels are starting to go down more targeted approaches, on Facebook you can do ‘custom audiences’, where you can say the type of people you want to target, are they on Facebook and if they are this is what you want to tell them. However data privacy policies need to be updated, as it doesn’t allow for your information to be used in this way at the moment. There’s a whole big question around do we need to update this, and we can ask people if they are happy and if they are we can use it in that way. Not many huge problems in regards to social media as we’re quite new to it, we have had a few issues with people ranting, and a minor celebrity who had a lot of twitter followers was ranting, caught the attention of senior executives who had to handle it. We do try to mitigate if there is anybody really ranting. Our team in Cardiff do the responding via ‘Conversocial’. If its out of office hours, customers get a holding response and then we get back to them when someone’s available. Due to the nature of our business, its not as easy for us to get back to a customer within minutes as it often needs to be investigated and see how things were handled and did it follow the correct processes etc.
  • 109.
    109 We don’t currentlyhave our own handle on Twitter, due to the fact we don’t publicise that you can get a response through Twitter at the moment. However if we did do this, we would seriously need to think about getting our own handle, to separate us from the retail side of things. Huge amounts of resources are required for that though, but in order to be a forward facing banking its something we will need to implement with new products and the bank growing etc. We seem to do well from an accessibility perspective; we get a lot of positive feedback about services such as Minicom for deaf customers for example. Recently the PR department of Tesco Bank has launched their own twitter handle, Facebook page etc. for promoting the community effort that we are involved in, as it is quite substantial. The budget we are allocated at the moment is fine for what we’re doing right now, but if it needs to grow then we would need a larger budget. It really depends on what direction social media within the bank goes in. Most banks probably have people dedicated to it, and we don’t have that as we sort of piggyback of the back of Tesco retail. With the introduction of current accounts there will be more need for a social media team. I think social media is here to stay; it’s all about relationship marketing. I think we’re moving away from traditional marketing and media and its all going towards building relationships with brands, we want people to talk and build up affiliations with our brand going forwards… It’s a conversation, that’s how we are going to bring people in and keep them loyal, by involving them. I am a huge advocate of social media, it allows companies to get real time information and it’s a great way to gage sentiment. It’s a temperature check in regards to customer’s feelings/opinions and it highlights things that need to be improved. It allows customers to express opinions and feelings, and is much more fluid if done that way rather than traditional methods such as questionnaires. Due to the weekly report we send out, we’re starting to interact with other departments more often, as they are following up things in the report to see what the outcome is. So more people are becoming interested. Most useful will be if we can get the data privacy policies sorted, is the ability to target customers, however social media can also quite easily cause damage to the reputation of a brand, and I suppose be quite difficult to manage if it gets out of hand.
  • 110.
    110 Its allowed brandsto have a more human side and conversation with people, and has actually made me personally warm to brands a lot more. Tesco bank have to be really careful being in a dry banking industry, however we want to build relationships and really understand our customers.
  • 111.
    111 Appendix G: Dear Participant, Pleasefind below the link for an online survey on exploring the rise of the social media phenomenon and investigating its role and impact in developing and nurturing brand communications, a study of Tesco Bank. https://www.quicksurveys.com/s/We97R The survey consists of 13 questions and should take no longer than 5-10 minutes. All answers remain anonymous. The purpose of the questionnaire is to analyse the influence social media has had from a consumer perspective on brand communication and whether or not it is viewed as a positive change. If you are happy to proceed, please click the above link. Thank you for your participation, If you require any further information, please do not hesitate to contact me. Yours Sincerely, Yasmin Love McKeag
  • 112.
  • 113.
    113 Question Four andFive Question Six
  • 114.
    114 Question Seven andEight Question Nine and Ten
  • 115.
    115 Question Eleven andTwelve Question Thirteen
  • 116.
    116 Appendix I: Positive Comments 1.“Allows them to promote to a much larger audience. Has possibly made companies advertise in new styles and with different ideas/goals allowing them to grow as a company. Largely depends on what type of company, consumer and product that is in question.” 2. “As most people now use social media, I feel that it allows companies to market and position themselves on a more regular basis. For example, they could post 5 pictures in a day or they could try fitting those ideas into a 15 second advert that their desired target market may miss. Facebook's business model is now based on selling advert space that will only appear on a targeted niche (the niche being specified by the business/brand).” 3. “Companies are now perceived to be closer to their customers and therefore have to be seen to be quicker to respond to customers and market conditions.” 4. “Enhanced, easy and free marketing” 5. “Feedback and public perception is more readily available via social media. Promoting and maintaining a brand has become more important as a result of this.” 6. “From my experience the most effective way for companies to promote there brand is not through advertising through status's but in replying to customers online and showing they are making the effort and have a light- hearted side as well as business side. Although some companies like paddy power have been seen to make customers annoyed by their jokes and portray a bad image because of this.” 7. “I believe that Social Media has made companies more reactive to their customers. They no longer can avoid issues or complaints and must deal with them in a timely manner. It also give them the ability to introduce new ideas and special promotions in a quick and effective manner.” 8. “I believe that social media has made many companies rethink the way they communicate with consumers. For example I follow innocent drinks on Facebook and they often post funny/cute pictures which means you are more likely to tolerate their brands presence if they then use social media for promotion of their products.”
  • 117.
    117 9. “I feelits had a positive impact as consumers can gain more information on a product / experience with a merchant etc., before going ahead with a purchase encourages good feedback for retailers as well as negative.” 10. “I feel social media is a great way for companies to promote themselves and their products they sell as it a fast and cost effective way to advertise.” 11. “I feel social media is the best way to target younger consumers such as myself as I am regularly on Facebook and get irritated with email newsletters. Using social networking to promote brands is the way forward e.g. clothes shops uploading photos of new arrivals. This is a quicker way to find out about new products rather than checking your inbox and reading an email which has to redirect you to a website for more information.” 12. “I feel that brands are being made more accountable through social media. For example, any poor products or human rights abuses are brought into the spotlight. It has also made advertising more interactive.” 13. “I feel that companies who use social media is good, it keeps them up with the times and allows them to connect to there customers.” 14. “I feel that social media promotion is essential in this day and age keeping the consumer up to date with the current trends, ease of use etc. This form of promotion saves me personally a lot of time and with little effort, from the comfort of my home. I still feel that the personal touch is also essential especially for the older generation who like to be made to feel that they are not just an account number but are valued as a customer.” 15. “I have noticed that if i am on a website looking at a product, it will more often than not appear on my news feed on Facebook for the days after. An example of this would be all-saints, if I am looking at their clothes online, the following days my news feed will have an advert showing me the shirt that i have looked at and also similar items. It is allowing these brands to have a second shot at attempting to get me to purchase a product I have shown interest in. And I have made purchases because of this "kind" reminder.” 16. “I personally feel without social media I wouldn't feel as inclined to purchase from them, seeing products come in within the new season is more tempting to buy it” 17. “I think it has a positive impact as it gets promoted to more people on a daily basis.”
  • 118.
    118 18. “I thinkit's had a positive outcome because it's an easier way to find out information about the brand and have your personal questions answered.” 19. “I think it’s had a massive impact as brands are now very aware of social media and what is put on there. I think they should focus on this but should find the correct balance as this can take away from a customer service aspect.” 20. “I think that product development has been majorly impacted by the integration of social media, it means that companies are able to get real time feedback about their brand and products. It has also helped to identify brands and companies which have failed in the eyes of the consumer because social media has given disgruntled or unhappy customer a platform to air their views to a greater audience.” 21. “I think that they have now become much more aware as to how a negative comment can affect their brand and its subsequent sales. But too much is given away for so called celebrity endorsements. Creates a negative affect and make me question even purchasing the brand when they do this constantly.” 22. “It gives companies the chance to reach a wider audience at a much faster pace than before.” 23. “It gives them a wider audience and platform to interact with customers.” 24. “It has allowed for companies to give themselves a more of a human side, a personality to the brand almost. By doing so, it allows them to connect with their consumers effectively.” 25. “It has encouraged more promotion and competition.” 26. “It has given companies the opportunity to really connect with their consumers on a more personal level, and opened up a new gateway for promotions etc.” 27. “It has made it easier for companies to market to their target audience. It is also an easy way to involve people in competitions and giveaways.” 28. “It has opened a new gateway in customer interaction which was not available before which can only be positive, and gives the chance to gain much needed feedback bringing themselves closer to their consumers.”
  • 119.
    119 29. “It haspromoted lot of companies and made them more well known.” 30. “It is the easiest way to communicate with everyone.” 31. “It makes the brand much more personable to consumers. A level of trust is created, as social media sites are a norm and part of daily life. If a company did not have Facebook or Twitter, etc., then I would question if they where current and therefore makes it seem they are unwilling to be accessible to their customers. Also I would question if the brand were reliable and reputable. However if a company only works from Facebook or twitter and doesn't have a main web page it makes me question their stability and longevity.” 32. “It's a means of allowing brands to constantly keep people updated on new trends/products and promotions. Companies like Nike and Adidas are great at involving customers into the brand through videos with the latest sports stars and engaging in conversation with followers.” 33. “It’s been largely positive for consumers. They can follow their favourite brands and see what there friends like. Also there seems to a follow page on Facebook about everything.” 34. “It’s forced them to use them. Being at the cutting edge of world communications offers a global platform for promoting a brand.” 35. “Its given companies a new way to advertise their brand cheaply and to the widest possible range of people so I think it is a great asset to companies, especially the bigger ones.” 36. Promoting through social media is highly beneficial to the brand. Instant and easy way to display the brands message.” 37. “Social media has affected companies in an effective way as it is staying current with times and I personally use social media on a daily basis which in effect means I’m constantly updated as to what companies are promoting or offering.” 38. “Social media has given many brands the ability to effectively target specific customer markets. It also gives the customer a less formal way to communicate with the brand in a very public way this forces the company to provide a level of customer service if they wish to maintain a good image on social media. Social media is a powerful marketing tool for companies but it can be a two way street as a dissatisfied customer can easily ruin a companies reputation.”
  • 120.
    120 39. “The customerhas a much better chance to let the company know his own opinion - and can share this with others. Furthermore the customer also is able to read about other customers opinion and experiences.” 40. “The vast majority of large organisations, particularly those that are consumer driven have presence on social media websites. Considering the broad range of individuals that use social media, specifically the varying ages and cultures, it allows websites such as Facebook and Twitter to focus their advertising and promotional techniques to specific character groups. Twitter in particular operates a general policy whereby a user can specifically chose the companies/brands that they wish to follow and this allows the organisation to develop specific promotional techniques based on the desires of its customers. Having used social media sites for some years there has been a boost in the number of advertisements visible on my homepage which can often prove annoying having to cipher through advertisements to view posts from friends and family but given the potential profitability and growth capabilities that social media websites provide it is understandable.” 41. “They can interact with consumers more effectively.” 42. “They definitely need to take more of an active role. With people expecting instant answers and even if they don't receive an answer posts can't be shared in minutes and go worldwide which the organisation would need to do damage limitation as it could affect the brand.” 43. “They seem to be more responsive and quick to sort problems that gain a lot of attention on social media.” 44. “Use it as a way of trying to break communication barriers to consumers.” 45. “Very useful in promoting brands and products.” 46. “Very well - as it's a more personal touch. Also, as a business owner I can speak to clients directly and let them know what I'm doing.” 47. “Very well, it's a great way for them to reach a young generation who spend much more time using social media than watching adverts or reading adverts in papers.” Negative Comments 48. “It's a lot more in your face all the time, which sometimes can be annoying.”
  • 121.
    121 49. “I feelpromotion from any brands now a days is very disposable as its so easy to post as often as they like for free therefore some brands get the balance wrong and can almost harass you with there news. 50. “More often negative aspects come to light than positive, I.e. trending customer complaints” 51. “Now that social media is so popular, I feel that brands are over-advertised. This could have a negative impact upon the brand as shoving products down the customers throat as such might cause the customer to lose interest in the brand as they could come across as desperate. Although it may not be a social media as such the advertisement on YouTube is a perfect example of over doing it. People are forced to watch adverts before they can view the video and sometimes this can become an annoyance.” 52. “Promotions, responses to feedback and giveaways are always appreciated, but sometimes companies seem to remove and ignore any negative feedback customers give, and also having to like and share things to unlock content or offers can be annoying.” Neutral or Mixed Comments 53. “Everyone is now on social media, so they are very 'in your face' with there promotions, sometimes this can be annoying. But is also sometimes useful.” 54. “Companies using Branded market have a more targeted plan of individuals that want to know more about that product and brands, and its and good platform for this type if product displacement. On a negative point of view, Bank shouldn't get involved in social media because of the amount of internet scan keep it to online banking. It’s all about advertising...the marketing of a product or service...if we want to know more about something with have a lot more options open to us then social media. Maybe it’s my way of saying I don't want to be marketed…” 55. “I'm not quite sure how I feel about it all. In one way, I'm getting ads that are at least relevant to what I like. The flip side is that someone somewhere is monitoring what websites I go to/ accessing cookies/ browsing history/ whatever and pasting the relevant ad all over my wall. Feels like more of a breach of my privacy when that happens. Don't know if I actually answered the question there?” 56. “It gives them an easier way to target people but they take advantage of it.” 57. “It's set apart a lot of companies; ones who can and do use it as an effective tool, and those who don't or can't. It has to be used at least properly (or it
  • 122.
    122 risks great reputationalharm), or well if the company wishes to differentiate itself from others.” 58. “Positive that the company can advertise there brand to a wide audience and communicate directly with customers. However complaints can be made publicly rather than a private email or letter and this can be damaging to the brand.” 59. “Social media has given companies an easier way to promote as they can reach people all over the world very quickly. Managing social media could be difficult as negative comments posted by consumers are spread just as quickly as positive so the companies have to ensure its managed well.” 60. “Social media has made it relatively easy to communicate with people but the personal service is not there with social media.” 61. “Social media platform can be dual purpose tools. In some instances it can be used to get a positive review by paying users to give glorified reviews and on the other spectrum it can be used by disgruntled users to hijack the brand to negative territory or negative reviews.” 62. “Some companies that have used it to promote their beliefs and intentions are fine with me, one's that use it for prize give always and asking for likes bother me 63. “They can reach a far greater customer base with less cost and effort. One negative point relates to the 'spamming' effect, bank may appear like they are spamming if they are constantly bombarding social media with offers etc.” 64. “They can reach a larger target audience, however that being said they may open themselves up to more criticism and public scrutiny. It's a lot easier for consumers to see what people are saying about the brand.” 65. “They may be more image conscious that before due to the level of expose, whether good or bad, they get from this. Some companies seem to make more of an effort to provide 'good service' via social media, which may or may not be purely for publicity reasons.” 66. “Through the use of social media, products are promoted all the time right into peoples hand held device that they use almost every hour of every day, this means that its more direct. They also tend to advertise things that you have already searched for in your search engine. This kind of takes advantage of the consumer.”
  • 123.