Pacific B usiness R eview I nternational

A Refereed Monthly International Journal of Management Indexed With Web of Science(ESCI)
ISSN: 0974-438X
Impact factor (SJIF):8.396
RNI No.:RAJENG/2016/70346
Postal Reg. No.: RJ/UD/29-136/2017-2019
Editorial Board

Prof. Mahima Birla
(Editor in Chief)

Dr. Khushbu Agarwal
(Editor)

Dr. Asha Galundia
(Circulation Manager)

Editorial Team

A Refereed Monthly International Journal of Management

Role of Social Media in Retail Network Operations and Marketing to Enhance Satisfaction: An Analytical Approach

Anis Ali

Department of Management,

College of Business Administration,

Prince Sattam Bin Abdulaziz University,

Al kharj, Saudi Arabia

 

Dr. Namita Dixit

Fortune Institute of International Business,

New Delhi

 

Dr. Meena Arora

Associate Professor,

IT Department,

 JSS Academy of Technical Education, Noida

 

Dr. Nermeen Ahmed Kamel Singer

Associate Professor of Media & Children’s Culture,

Ain Shams University, Cairo, Egypt

 

Abstract

Advanced innovations allow retail networks to put unique business strategies in motion in order to attract customers and achieve a competitive edge. Retail networks ought to be taken into account in order to design a model of specific service operations and communication strategies that can maximise loyalty through offering value to clients, open input from users via social networking. The purpose of this study is to show how the retail network leverages the opportunity to satisfy consumers along with actual service operations through social media review. The analysis states the intersection of: a company, service activities; and their effects by from social media review on consumer satisfaction scores. For respondents, a 5-point Likert scale was used to determine their degree of compliance with each argument. The research used the survey questionnaire approach to obtain perceptions of consumer loyalty in the retail sector based on feedback from the social network and service practices. The study shows that supermarkets can leverage customer satisfaction by integrating various service practices and observing the reactions to these activities on social media channels. The study shows the need to recognise corporate efficiencies when encouraging consumer behavior-dependent sales; with diligent preparation, customer loyalty and profitability standards can be improved. This sends the network a clear message to protect its place inside a highly dynamic market environment.

Keywords: Social Media, Retail Networks, Marketing, Consumers

Introduction

The rise of people using social media as part of everyday life has changed how people shop.  That dramatically modified the structure of the purchaser/seller of delivery networks; where buyers are now able to see a greater amount of purchase range. This move fundamentally changes the production capacity of retailers and suppliers (Laroche et al., 2012). This eventually led to a closer partnership with operations and promotions around the supermarket chain. Research reveals that reward schemes and store promotions may have an effect on customer purchase behaviour (Taneja & Toombs, 2014). Consumers profit from promotions and loyalty schemes, but these programmes might not be compatible with in-store operation practises and customer ratings. Customer's satisfaction is also dependent on customer experience factors such as store maintenance, store design, and shopping climate (Bolton, 1998). A greater understanding of what creates customer satisfaction and how this influences systems will help retail services to succeed. However, with the power of social networking, the concept of pleasure cannot actually be calculated at a particular moment as fulfilment is extracted from the plurality of experiences of the client. Better comprehension of customer expectations and sense of product quality may help influence one's buying intentions. Shu et al., (2011) suggested that the correlation between market loyalty and customer purchasing behaviour is relatively weak Mathur (2019).

Background study

In the Indian retail sector, the loyalty dependent network model and the perceived benefit model have been used.  At the moment, major Indian stores are very oriented on their rewards programmes including shop cards and party cards (Chae et al., 2020; Kim & Park, 2017). In the cases of each business, revenues are calculated (Laroche et al., 2012). However, the revenue of the business is not part of daily revenues and demand research. In order to understand the market in any field, the business needs to carry out a thorough study of the fundamental drivers of demand, particularly in the retail sector, marketing and social media feedback that could potentially negatively impact sales (Nair and Kamboj, 2014).

Marketing and Retail operation in social media era

Since 1990, the retail sector has experienced a series of tumultuous changes. When the internet and social media became more popular, the purchaser's preferences changed very drastically (Kim & Park (2017). This previous boom in consumer loyalty systems has created a current trend in customer loyalty programmes (Jermsittiparsert et al., 2018). The findings of this study helped to clarify the interaction between retail operations and marketing (Chong et al., 2018). In the case of department outlets, various sales variables are measured in comparison to basic factors such as income and marketing. The review of this study lets managers prepare how to accommodate demand through all distribution networks (Ramanathan, 2012). Yet information in the supply chain is faulty, and thus analysis is not accurate and accessible.

In the modern era of social networking, certain customer data, such as price reviews and service efficiency, is regularly published on social media pages such as Twitter, Facebook, and message boards in shops. Customers should use social media to warn the public about promotions that may occur during the holidays. It is advisable that managers have ample stocks of food. A large-scale scarcity should be a very significant issue to potential consumers (Grant and Fernie, 2008). Disengagement by online communications is magnified by new technologies, and no longer restricted to traders (Mitic&Kapoulas, 2012). In the moment, a swift response is expected from the retailer management to maintain customer demand for non-promotional products; any inability to do so may impact consumer demand for promotional items (Goh et al., (2013). This case elucidates the habits of cultural consumers in the social network environment, and illustrates the value of well-planned development and rapid replenishment of stocks.

Significance of the study

Consumers can look to the Internet and third party sites for feedback on vendors and the goods they offer. People who are unwilling to get an overview of this shop from an online analysis are a separate community than most. When using social networking, many retailers provide interactive maps of their stores that can include relevant details such as parking and operating hours; allowing shoppers to make choices before visiting those shopping venues. Social network input offers direct data on online purchasing experiences that is used to inform potential customers, which even motivates store managers. This input on social networking lets companies discover new problems and solutions to improve their sales and customer loyalty. Combined with input from the social network, service processes and marketing departments, customer experience and client satisfaction may be improved by the organisation. This research examines the role of service operations (such as store service quality), marketing (such as brand loyalty) and social media reviews to enhance consumer satisfaction.

 

Review of Literature

Examination of related literature is important for a researcher to familiarise himself with existing expertise in the area of interest. A detailed analysis of the subject sector is undertaken.

Customer Satisfaction

Consumers make decisions when shopping and transactions based on the scores of the products and the supermarkets that sell such goods. In retail purchases, the consumer's type of buying preference is influenced by what they experience and see from the message of the brand and what buyers with prior experiences with the product have to say. Consumers are gradually being exposed to incentive schemes and gift cards. Consumers' brand recognition is further strengthened by personal experiences and advertising depictions. Consumers in today's society rely on tips from friends and input from different media sources, and provide a structure for making choices. Time restrictions can have an effect on how buyers shop; leading to differences in purchasing behaviours depending on how much time they have Fotiadis &Stylos (2017). A different study showed that high time demands led to more efficient community meetings. Rapp et al., (2013) indicates that impulsive behaviour will moderate the intention to look for, and process, information while shopping. Many polls have shown pressurised buyers who trust the labels they purchase, even as time pressures play a crucial role in their purchasing decisions. If prospective buyers feel the price is too high, they would be dissuaded from buying it. Taken together, these variables induce consumer understanding of importance, which is one of the most important determinants of how consumers view shopping and eventually buy Kim & Park (2017). Decisions are made over time, and ultimately impact the amount of happiness of the shopper. Customer satisfaction is a huge incentive for having a customer. Because of the dedication to know consumer actions, marketing firms have become popular in knowing their needs, preferences and desires. Jermsittiparsert et al., (2018) understand the significance of both the physical and psychological aspects of consumer behaviour. In the field of emotional promotion, advertisements have long been believed important to promoting products to customers. However, people use word of mouth most frequently. Subjects indicated that more reasonable or informative contacts improved their desire to buy the commodity. Foroudi et al., (2019) showed that ads would result in overall higher expectations of quality. However, customer opinion of the company ultimately defines their level of satisfaction. Recent analysis has shown that consumer satisfaction is a crucial component for market share development.

Marketing in retail sales

Consumer behaviour, repetitive purchasing behaviour and retail is a major issue for both academia and industry. The consumer activity of a community of consumers depends on their loyalty to the business and the possibility that they will be re-purchased by the brand (Woodside & Walser, 2007). In accordance with this paper's concerns, faithful clients are crucial to an organization's progress (Fotiadis &Stylos, 2017). Fairness is a key to continued performance in the market and so the condition of fidelity needs to be more closely grasped and utilised to create strengthened partnerships with loyal consumers. Rowley (2005) identified four kinds of loyalty, including impulsive, hopeful and committed, and noted that the majority of organisations, in terms of the different items, services, networks and their related brands, are likely to display the characteristics of any such kind (Abbas et al., 2019). Persistent brand loyalty is attributed to many separate reasons a direct bond between a company and the consumer (Chae et al., 2020) have a number of concepts for loyalty, including recurring sales, lifelong partnerships, and consumer loyalty stated by Foroudi et al., (2019). It is also believed that high customer value and loyalty are highly associated. Some findings have shown that customer loyalty is strongly related to behavioural intentions in countries/industry, but not in the retail world Mathur (2019). Responses of retailers to changing market demographics have triggered a number of studies (Chanthinok et al., 2015). If a customer has a social networking platform, their feedback can directly influence the preference of new customers. In the following pages, it is explored in more detail as a means of conceptualising how the effects of ads impact customer loyalty.

Brand loyalty

The components of the brand are both concrete and intangible and are made up of various items (Chae et al., (2020). Functional characteristics are strengthened by relations, picture, personality and credibility, continuity, sense, symbolism, features, advantages and service. In order to purchase and re-purchase items, consumers are required to make sense of these features (Taneja & Toombs, 2014). One important marketing aim is to develop an intense relationship between the consumer and the company, and one way to do this is to give consumers trust. Fotiadis &Stylos (2017) identified the variables to be described and weighted when selecting a brand. These elements are dynamic and have a considerable degree of perception and subjectivity in the behaviour. Emotional commitment to products is likely to affect beneficial actions, and these attitudes are associated with a high degree of consumer satisfaction. The bond between people evolves steadily over time and is always influenced by a person's relationship to their attachment object (Abbas et al., 2019). However, particularly though they may not have first-hand contact with the commodity, the consumer would sound beneficial to the product (Soriano et al., 2012). Though there can be just a limited amount of things that individuals are personally connected to, they are known to be significant to their existence (Foroudi et al., 2019). The mind becomes operational due to the call for concern, feeling healthy, or becoming sad. Brand behaviours are more critical than brand desires, whereas cognitive (rational) brand characteristics are stronger predictors than the latter in forming brand preferences. Developing a positive vision of a good or service can lead to the desired response and satisfaction (Laroche et al., 2012). Furthermore, attitudes themselves may display temporal instability as apparently unrelated changes stated by Felix et al., (2017). Soriano et al., (2012) supported that brand loyalty has also been found to be essential to customers.

Service operations

Retail firms seek to make their locations as desirable as possible by leveraging managerially controllable elements, including marketing design, pricing and merchandise policy (Berman and Evans, 2012). Such uncontrollable factors, such as the customer's mood, local circumstances and economic trends, also need to be discussed. Customers' behaviour would have a detrimental effect on their shopping experiences, their amount of shopping happiness and, finally, their shopping plans. In order to be effective, retailers must appeal to consumers at every point of the sales phase, at every move. Managers should bring customers to their place of business and persuade them to want to invest their money (Laroche et al., 2012). Fotiadis &Stylos (2017) found characteristics such as: selection of products, environment and position affected the loyalty of a specific store and, as a result. Service versatility is a big consideration for buying choices because customers require a range of integrated services, such as parking, flexible closing times and convenient payment methods. Retail perception is informed by the beauty of the shop. Chae et al., (2020) showed that faith and commitment are the key factors that affect the loyalty of stores. Happiness has a tangible impact on the morale and engagement of staff, which will certainly have a tangible effect on the competitiveness of the business. How the store appeals to a certain customer relies on the buyer's participation in the buying process and the degree of involvement in the buying process (Abbas et al., 2019). Finally, we find that brand loyalty, social media review, and service operations lead to a good consumer satisfaction.

The studies which had been taken up earlier in India are less focused on consumer purchase behaviour. The earlier studies in India had been done on smaller groups and none of the studies have been taken up in capital region. From the extensive review of literature three significant factors contribute to enhance the customer satisfaction.

Research methodology

The research methodology is a comprehensive method of collecting knowledge about a subject. Several different methodologies are used for different forms of research, and several scientific results are made as a consequence. The organisation of study is a way of resolving the problems of study systematically. The research methodology is as follows:

Objectives of the study:

  • To explore the concept of marketing and retail operation in the era of social media
  • To explore the factors affecting customer satisfaction in retail network operation and marketing
  • To find the relationship among the factors and customer satisfaction
  • To suggest directions for future research

Research Hypothesis

  • H1: Social media review has a positive relationship with customer satisfaction.
  • H2: Brand loyalty has a positive relationship with customer satisfaction.
  • H3: Service operations have a positive relationship with customer satisfaction.

Data collection and source

A quantitative consumer purchasing behaviour study was performed in various geographical locations of Delhi. This survey was paper-based and took place in neighbourhoods, at different places in public locations. The survey was supplemented with a second one to verify its precision. 102 separate answers were gathered and evaluated. All items were mentioned firmly in disagreement on the Likert 5-point scale from "1" to "5."

Analytical tools

Descriptive statistics and correlation were used for the statistical analysis. Correlation means the relationship between the independent and dependent variables was confirmed by correlation results. Microsoft Excel was used for the analysis.  Mean, Standard deviation and Correlation were the statistical tools used for the study.

Data analysis

Demographic profile

Table1.1: Demographic variables

Variable

 

Frequency

Percentage

Total

102

100

Gender

 

Male

53

52.0

 

Female

49

48.0

Age (Years)

 

18-25 years

68

66.7

 

26-40 years

22

21.6

 

41-55 years

10

9.8

 

56 years and above

2

2.0

Education Level

 

Under graduate

41

40.2

 

Graduate

24

23.5

 

Post graduate

35

34.3

 

Doctorate

2

2.0

 

In the demographic profile total 102 people responded to the survey in which 52% male and 48% were female. Majority of the respondents were undergraduate and between the age of 18-25 and least of them were above the age of 56 years and above. Graduate people were only 23.4%, post graduate were 34.3% and only 2% were doctorate. 66.7% respondents were between the age group 18-25 years, 21.6% respondents were between the ages of 26-40 years, 9.8% were between the age of 41-55 years and only 2% were above the age of 56 years.

Descriptive statistics and correlation analysis

A description of the mean, standard deviation, and correlation of all of the components is provided in the tables. 

Table 1.2: Mean, Standard Deviation and Correlation

 

Variables

Mean

Std. Deviation

1

2

3

4

Social Media Review

14.3020

2.52728

1

 

 

 

Brand loyalty

15.4451

2.68961

.286**

1

 

 

Service operations

 

16.5490

3.67615

.132

.798**

1

 

Customer Satisfaction

15.0765

2.73011

.372**

.670**

.594**

1

 

N =102; *p < 0.01 (2-tailed).

 

 

According to the results of table 1.2, customer satisfaction was favourably related to the Social media review (r = 0.286, p < 0.01). Consumer satisfaction was also found to be positively correlated with brand Loyalty (r=0.798, p<0.01) and Customer satisfaction was also found to be positively associated with Service Operations (r=0.670, p<0.01), which is high across-the-board. These findings are used to endorse our hypotheses-related research.

Conclusion

The usage of social media has caused industry to change over the last two decades. The business landscape has changed, and available options and strategies have been made accessible to customers, including concrete illustrations of the usability principle and the choice concept. Following this new development of social networking and customer reviews, supply chain activities have become more efficient since Owing to the effects of social network feedback and service activities, beneficial impacts to customer satisfaction may be realised. It discusses the relevance of service behaviours and how users equate social network scores. The pre-planned market research does not actually adjust even though a sale went through at the shop. In the future, shops would continue to remain linked to shoppers via social networking, such as Facebook and Twitter, to respond to questions, to reward customers for their purchase, and to get updates about their experience.

Suggestions and Limitations

The primary role of the retail outlet operations manager is to have a favourable shopping experience and improve buyer satisfaction, which in turn contributes to higher retail sales. Other indicators you may take into account, such as client ratings and retailer service, have favourable impact on customers. Around the same time, it is necessary to note that even though shop reviews have a positive impact on customer satisfaction, this point shows the importance of service operations when transactions are taking place in store networks. These results suggest that the retail sector cannot succeed simply by adapting to online customer reviews; they would need to work on localising offerings to provide high-quality service to in-store customers. Our research is centered in capital region, it can be extended to yield results for other parts of India, and it would be helpful. Our research is focused on input from the social network and it can be used in big data for future experiments on social advertising, social and interest curves, social networking and more. Further study of online shopping applications, such as virtual shopping, can help us understand retail customer loyalty and service quality standards. We focused primarily on the core outcome of customer satisfaction and did not consider other outcomes, such as general growth in site sales and a rise in average order size.

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