SOCIAL MEDIA MARKETING

Transcription

1 SOCIAL MEDIA MARKETING Researching Facebook marketing adoption factors among Norwegian health clubs Nikolai G. Høibo Supervisor Dr. Rotem Shneor Assistant Professor at the University of Agder This master s thesis is carried out as a part of the education at the University of Agder and is therefore approved as a part of this education. However, this does not imply that the University answers for the methods that are used or the conclusions that are drawn. University of Agder 2014 School of Business and Law 1

2 Acknowledgements ThisthesisisdedicatedtomybeautifulwifeCecilieandnewbornbabyOthilie.Thank youforsupportingme,encouragingmeandallowingmetodedicatesomuchtimeand effortintomywork.iknowyouaregladitisallover. Iwouldliketogivemysincerestgratitudetomysupervisor,AssociatedProfessorRotem Shneor.Withoutyourpatience,excellentadviceandhelp,Iwouldnothavemadeit.Your guidancewasprecise,richandexactlywhatineeded,whenineededitthemost. Itiswithpleasurethatthesefinalwordsarewritten,honestlyIwasnotsureifIwould evergetitdone.agreatburdenisnowleavingmyshoulders,anditfeelsgreat.ithink myparentsareproudto,thankyoumomanddad. Thanks Kristiansand, NikolaiG.Høibo 2

3 Abstract Thisthesisisaboutsocialmediafromabusinessperspective.Thepurposeistoexplore whatfactorsinfluenceadoptionofsocialmediamarketingamongowner/managersin smallandmediumsizedbusinesses.thethemeofthesisisbasedontheobservationthat therearemanybusinessesthatdonotuseit,despitethatprototypicalsocialmediasite, suchasfacebook,hasenabledbusinessesofallsizesandbudgetstoparticipate. Aresearchmodelwasdeveloped,inspiredbypracticalknowledge,researchaboutsocial mediaandaliteraturereviewoftechnologyadoptionfactors.wesuggestedfivefactors thatcouldinfluencesocialmediamarketingadoptionwithfacebook.fourofthese factorswereaggregatedconstructsthatweresynthesizedbasedonthefindingsfrom theliteraturereview.thesewerelabeledperceivedcompetitivepressure,perceived costs,perceivedcompetencyandperceivedcompatibility.researchersuggestedthefifth independentvariable,leadershippriority. Fivehypotheseswereempiricallytestedusingquantitativeresearchmethod.Datawas collectedbyusinganonlineevmaildistributedsurveythattargetedandcollecteddata fromatotalof115owner/managersassociatedwithnorwegianhealthclubs. ThedatawereanalyzedusingfactoranalysisandlinearregressioninSPSS.Theresults fromthefactoranalysissuggestedsixfactorsthatwerelabeledfacebookmarketing Adoption,OrganizationCulture,CostofUsage,CostofAdoption,Compatibilitywith CompanyandCompatibilitywithIndividual.Theresultsfromtheregressionanalysis showedthatorganizationcultureandcompatibilitywithcompanyhadasignificant influenceonfacebookmarketingadoption. Thesefindingsarelimitedtothehealthclubindustry.Theimplicationsofthethesis suggestthatowner/managersofnorwegianhealthclubsshouldadoptsocialmediasites suchasfacebookforbothcommunicationandmarketingpurposes. 3

4 Preface Oneofmybiggestdreamsinlifeistobuildandrunasuccessfulbusiness.Ihave experimentedwithsmallbusinessprojectsallmylifeandichosetostudybusinessto prepareforthis.afterbeingfortunateenoughtoattendamaster sdegreelevel entrepreneurshipvprogramatucberkleythatincludedaninternshipatasiliconvalley startvup,ireturnedmoreeagerthanevertogetstartedonmyownbusiness. Inthefinalsemesterofmymaster sdegree,idecidedtoregisterandstartmyveryown business.togetherwithmybusinesspartner,afriendthatimetatuniversity,we created,launchedandsoldoutourveryfirstproduct.wehadcreatedsomethingfrom scratchandwereabletopayourbills,withouthavingasecondjob.inmyperspective thebusinessprojectwasagreatsuccess.unfortunately,thebusinessrequiredallofmy attentionandmyacademiceducationsuffered. Aftera1,5yearbreakfromschool,Idecidedtoreturnandfinishmymaster sdegree.i knewthatwritingthisthesiswouldrequiremyfullattention;thereforeiputthe businessonhold.however,ichoseatopicthatcoulddirectlybenefitourbusiness endeavour.idecidedtofocusonsocialmediamarketingwithfacebook,astrategythat wehadsuccessfullyappliedtogainmomentumforourbusiness. EarlyIexperiencedthetheoreticalprinciplesIresearchedcouldbeputintopractical use.whatihavelearnedfromthisprocesshasalreadyaffectedourbusinessplanand howwewillapproachpotentialcustomers. 4

5 TableofContents Acknowledgements. 2 Abstract. 3 Preface. 4 Introduction. 8 Research(question( 9 Clarification 9 Overview(of(study( 10 Social.Media..Facebook.as.a.marketing.tool. 11 Social(Media( 11 Buildingblocks TheHoneycombofsocialmedia 11 Facebook Aprototypicalsocialmediasite 13 Social(Media(Marketing( 14 SMM asanextensionofinternetmarketing,evmarketing,evcommerce 15 FacebookAds Facebook spaidcommunicationandadvertisingtool 15 SMMVarelationshipmarketingtool 16 FacebookPages Afree Relationshipmarketingtool forcompanies 18 SMMVelectronicWordofMouthmarketingtool(eWOM) 19 The Like button Facebook s ewomtool 20 Three(business(challenges(to(Social(Media(Marketing( Communityorcommercialplatform PushorPullmarketing insocialmedia AdvertisingAvoidanceinOnlineSocialNetworkingEnvironment 24 Literature.Review. 26 Researching(Technology(Adoption(Factors( 26 Classification(of(Adopters( 27 TechnologyAdoptionLifeCycle 27 LeadershipTypologiesforTechnologyAdoption 28 TAM( (Technology(Acceptance(Model( 30 Conceptual(Clustering(of(Adoption(Factors( 32 CompetitivePressure 33 Competency 34 Costs 35 Compatibility 35 5

6 Research.Model.and.Hypothesis. 37 Research(Model( 37 Hypothesis( 38 Research.method. 40 Quantitative(research( 40 Studycontext 41 Datasources 41 Sampling 41 Researchsampleandsize 42 Datacollection 42 Measurement(of(variables( 43 Dependentvariable 43 Independentvariables 44 Analysis.and.Results. 53 Factor(analysis( 53 CheckingCommunalities 53 AssessingFactorLoadings 54 Relabeling(research(model(adoption(factors( 57 Cronbach salphareliabilitytest 60 Statistical(methods( 62 Descriptive(statistics( 62 Correlations( 63 Regression(analysis( 66 Discussion. 70 Hypothesis(discussion( 70 PerceivedCompetitivePressureVDiscarded 70 PerceivedCompetency Splitandpartiallysupported 71 PerceivedCosts Splitandrejected 73 PerceivedCompatibility Splitandpartiallysupported 74 PerceivedLeadershipPrioritiesVRejected 75 Discussion(Summary( 76 Conclusion. 77 Contributions( 79 Limitations( 79 Implications( 80 6

7 Futureresearch 80 Managerialimplications 81 Sources. 83 Appendix. 89 Appendix(1:(Survey(results( 89 Appendix(2:(Literature(review( (technology(adoption(factors( 89 7

8 Introduction This(chapter(will(provide(an(introduction(of(the(phenomenon(that(is(explored(in(the(thesis.( An(observation(about(social(media(as(a(business(strategy(is(presented(to(justify(the(choice( of(topic,(before(stating(the(research(question(and(a(quick(overview(of(the(study.( Astaggering73%ofallonlineadultsarenowusingasocialmediasite.Withmassive growthandclosetoonebillionusers,facebookhavecreatedanewcommunication channelthatistobereckonedwith.inlessthantenyears,facebookhasbecomeoneof thebiggestindividualcommunicationchannelsinnorway,witha70%reachisitnowas bigasnrk1,andbiggerthantv2andvg.(callaghan,2013;aaronsmith,2014) (Hauger,2014;Johnston,2010) Understandingsocialmediaanditsimplicationsareincreasinglyimportant;social mediaplatformssuchasfacebookhaveinrelativeshortperiodchangedthewaypeople communicateonline,andhowbusinessesareabletocommunicate.ithascreateda marketingopportunitiesthatneverexistedbefore.formarketer sthisrepresentsanew, fastgrowing,increasinglyimportantandmostlyunexploredmarketingchannel.stillat anearlystage,marketersarebeginningtounderstandhowtousesocialmediaand includeintheirmarketingstrategy.(akar&topçu,2011;davidgtaylor,2011) FacebookhavecreatedafreeservicefortheirusersbybuildinganadvertisementVbased businessmodel.marketingtoolshavebeencreatedthatgivesbusinessesa communicationchanneltopromotethemselvestotheirusers.socialmediasiteshave openedupandallowedbusinessofallsizes,inanyindustrytocommunicateand interactwithpotentialcustomersmoreeasily(grandon&pearson,2004;martin,2010; Zarrella&Zarrella,2011). Martinsummarizestheopportunitywell: Never(before(has(it(been(possible(for(small(and( midxsized(companies(without(lavish(budgets(to(utilize(the(same(marketing(tools(as(major( corporations.(social(media(is(equally(accessible(to( mom(and(pop (companies,(onexperson( firms,(and(huge(organizations. (Martin,2010) 8

9 However,itisobservedthateventhougheverybusinesshasbeenenabledto communicatethroughthesameaccessibleplatform,noteverybodydoes.many executivesstilldon tincludeitintheirmarketingstrategy.(kietzmann,hermkens, McCarthy,&Silvestre,2011)(Wilson,Guinan,Parise,&Weinberg,2011) Therefore,studyingthesubjectofsocialmediaandtheadoptionofsocialmedia marketingasabusinessstrategywouldbeexciting.especiallysincethattherehave beendoneseveralstudiesaboutsocialmediafromtheusersperspective,butfew studiesaboutevmarketingfromasmallbusinessperspectiveandthatinvestigatethe adoptionamongsmallbusinesses(elvgohary,2012). Researchquestion Themainpurposeofthethesisistoexplorefactorsthatdeterminetheadoptionofsocial mediaaspartofamarketingstrategyinsmall/mediumsizedbusinesses.morespecific; WhatfactorsinfluencesadoptionofsocialmediamarketingwithFacebookamong Norwegianhealthclubs? Clarification Therearean ecology ofsocialmediasiteswithdifferentfunctionalityandtermsof opportunity.(kietzmannetal.,2011)accordingtoandreaskaplan,thereseemstobe confusionamongmanagersandacademicresearchersastowhatincludeintheterm socialmedia,(kaplan&haenlein,2010)andbyexaminewikipedia slistofmajorsocial networkingsites,youwillrealizethemagnitudeofthephenomenon.203sitesarelisted. Everythingfromwikis,forums,blogs,sharing,video,music,dating,networkingand reviewsitesforanygender,agedemographic,productorindustrythatcouldbe consideredasasocialmediaplatforms.(wikipedia,2014) Evenifitcouldbeinterestingtogetashortdescriptionofthecurrentmostimportant andinfluentialsocialmediaplatforms,thisresearchwillonlybefocusingononesocial mediaplatform.consequentlywillthisresearchbelimitedonlytoincludefacebook. Thisrestraintistwofolded: 9

10 First:Amountofusers,accordingtoarecentreportaboutSocialMedia: (Despite(recent( growth(by(services(such(as(pinterest(and(instagram,(facebook(remains(the(dominant(social( networking(platform...and(is(popular(across(a(diverse(mix(of(demographics(groups ((Aaron Smith,2014)ThatmeansFacebookisstilltheleadingplatformwhenitcomestousers. Second:Marketinginfrastructure, We(got(two(major(highways(online,(that(is(Google(and( Facebook,(not(search(and(social(media. (Jerijervi,2014)Facebookoffersadvanced marketingtoolsthatarefastandsimpletouse,evenformanagerswithlackoftechnical skills.makingitaviabletoolforlocalandb2cbusinesses,(siemasko,2014)whichisin focusofthisstudy. Overviewofstudy Theresearchquestionisaddressedthroughaninvestigationofresearchdoneabout virtualcommunities,socialnetworkingsites,onlineforums,etc.firsttolaythe foundationaboutsocialmedia.thenwemapoutthemarketingandcommunication opportunitiesofsocialmedia,andlinkittofacebook smarketingtools.thereisalso givenapresentationofresearchthatlookintotheattitudesandchallengesofmarketing withandinthemedium. Itisconductedaliteraturereviewoftechnologyadoptionandacceptancefactorsthatis summarizedandpresentedbeforerevealingtheresearchmodel.theresearchmodelis thentestedempirically.aquantitativeresearchmethodisexplained,beforeshowing, explaininganddiscussingtheresults.theconclusionisgiventogetherwithaconceptual frameworkbeforewepresentthelimitationsandimplicationsofthethesis. 10

11 SocialMedia Facebookasamarketingtool This(chapter(will(provide(an(introduction(of(social(media,(an(explanation(of(social(media( marketing(and(how(it(relates(to(facebook s(business(applications(and(marketing(tools.(it( also(includes(an(overview(of(three(important(challenges(of(social(media(marketing.( SocialMedia AccordingtoKozinets, Electronictribes wasalreadybeingrecognizedinthe1970s, andbylate90smarketersandbusinessstrategistscouldseesubstantialimportanceof thestrategicimplications.(kozinets,1999)differenttermshavebeenusedtodescribe thegeneraofsocialmedia.porterarguesthatthereisnosingle,widelysupported typology,(porter,2004)andreaskaplanmakesusawareoftheconfusionaroundthe term,inbothacademiaandamongmanagers.overallitseemsthatsocialmediais definedasmediaforsocialinteraction,usinghighlyaccessibleandscalable communicationtechniques.(bhanot,2012;cohen,2011) OxfordDictionarydefinessocialmediaaswebsitesandapplicationsthatenablesusers tocreateandsharecontentortoparticipateinsocialnetworking.(dictionaries,2014) Mangold,emphasestheunderstandingofthatitis uservgeneratedcommunication aspect.(mangold&faulds,2009)kietzmannmentionstheimportanceofmobileand webvbasedtechnologythatlaysthefoundationforindividualsandcommunitiestoshare andcreatecontentrapidly.beforehedescribesthesevenbuildingblocksofsocial media.(kietzmannetal.,2011) Buildingblocks TheHoneycombofsocialmedia Kietzmann,(Kietzmannetal.,2011)provideaframeworkthathecallsitthe honeycombofsocialmedia. Heconsidersittobesevenfunctionalbuildingblocksthat capturetheessenceofsocialmedia.theyare(identity,(conversations,(sharing,(presence,( relationship,(reputation(and(groups. 11

12 Figure.1.The.honeycomb.of.social.media.(Kietzmann.et.al.,.2011). Identity(representsthefunctionthatmakesusersexposepersonalinformation aboutthem.thiscouldbepracticalinformationlikename,demographic professionandlocation,butalsounconscioussubjectiveinformationaswhat theyarethinking,feeling,likeanddoesn tlike. Conversation(isthefunctionthatexplainsthatuserscommunicatewitheach otherwithinthesocialmediasite. Sharing(explainsthatuserssends,receivesandareconnectedwitheachother throughcontent. Presenceisthefunctionalbuildingblockoftheframeworkthatletsusersknowsif otherusersareavailableandwheretheyare.thisisimportantfortheintimacy andimmediacyofthemedia. Relationshiprepresentsthewayitispossibleforuserstorelatewithoneanother. Itistheassociationthatcouldstartaconversation,sharecontentorjustlisteach otherasfriends. 12

13 Reputation(isthefunctionthatmakesitpossibletodeterminethesocialstatusof themselvesandothers.differentsiteshavedifferentmeasurementandtoolsto dothis.examplesare:microbloggingsite,twitter,showsausersamountof followers.(bulearca&bulearca,2010)facebookcount likes,(facebook,2012e) andyoutubeshows viewcounts (Bhanot,2012). Groupsarethelastbuildingblockofthehoneycombframework.Thisfunction letsusersinteractandestablishsubvcommunitieswithintheparticularsite. Groupsarecreatedformoreprivatecommunicationamongcertainmembers, andexcludeothersforvariousreasons. Facebook Aprototypicalsocialmediasite Facebookisasocialmediasitethatwasfoundedin2004byMarkZuckerberg,Eduardo Saverin,DustinMoskovitzandChrisHughes.Itisdesignedtohelppeoplestayintouch witheachother,produceandconsumecontentandconnectwiththingstheylike. (Facebook,2012b) Facebookisthemostpopularsocialnetwork,oneofthemostvisitedintheworld,(Funk, 2011)andconsideredtobeaprototypicalsocialmedium.(Chunsik,Jarvinen,& Sutherland,2011)Itisconsideredapotentialmarketingtoolbecauseofallofitsactive users.accordingtofacebookownstatisticsonanygivenday,50%offacebook845 millionuserschecktheirfacebookaccounts(facebook,2012b;skellie,2011). Remarkable71%ofonlineadultsintheUShaveprofileandusesFacebook.By demographic,italsogot45%ofinternetusersthatareattheage65orolder.(aaron Smith,2014) Note:TherewillbemoreevidenceofFacebook smarketingopportunitiesinthe followingsection. 13

14 SocialMediaMarketing ( Social(media(offers(tantalizing(new(possibilities(for(getting(customers(attention(in(ways( that(are(strikingly(different(from(search(and(display(ads,(the(two(dominant(forms(of(online( advertising. (Hof,(2011)( ( Electronicmarketingvariesaccordingtoeachresearcher spointofview,background andspecialization.(elvgohary,2012)theperspectiveoftheterm socialmedia marketing inthisresearchisseenasaunifyingtermforrelationshipmarketingand electronicwordofmouth(ewom),andextensionontheterms Internetmarketing,eV marketingandevcommerce, whichhasbeendifficulttolabel,usedinterchangeablyand synonymouslyinacademia.(daniel&wilson,2002;gilmore,gallagher,&henry,2007) ( SocialMediaMarketing(SMM)cansimplybeexplainedasusingsocialmediaplatforms topromoteyourcompanyanditsproducts.(akar&topçu,2011;barefoot&szabo, 2009),andwheremarketerscanusechannelstogainexposuretoentirelynew audiences,increasebrandrecognitionandgetnewcustomersintargetmarket. (Pannunzio,2008) We(don t(spend(money(on(social(media(because(it(is(fun,(but(because(it(works. Mats Lyngstad,Digitalmarketer.(Jerijervi,2014) Socialmediaisamarketingtool,justlikepublicrelations,events,radioads,anddirect mailaremarketingtools.(martin,2010)however,therearenoparallelformordelivery methodofmarketingintheofflineworld.(davidgtaylor,2011)itisdifferentfrom traditionalmedia,inwhichtheyarerelativelyinexpensiveandaccessibleforeveryone, individualsandbusinessestopublishoraccessinformation.(bhanot,2012) Soaswiththeunderstandingofsocialmediaplatforms,oneneedstounderstandthe dynamicandmethodofmarketinginsocialmedianeedstobedifferentfroman advertisementintraditionalmediatowork.(cohen,2011) 14

15 SMM asanextensionofinternetmarketing,ekmarketing,ekcommerce Differenttermsareusedtoexplaintheuseofmarketingcommunicationthrough electronicdataandthediverseapplicationofinternet.broadtermslike Internet marketing,evmarketing,evcommerceandevbusiness havebeenusedtoclassifyit,and researchershaveseemedtoagreethatdefinitionisaffectedbyresearcher.(elvgohary, 2012) Sincetheintroductionofsocialmediasitesthegrowthhasbeenrapidanddramatic, changingthepurposeandfunctionalityoftheinternet.(vogt,2008)theopportunityto reachconsumersdirectlyandinpersonalandsocialenvironmenthasmademarketers eagertoadvertiseinthenewmedium.(boyd,2007) TheInternetwasearlyrecognizedasthemostsignificantdirectmarketingchannelfor theglobalmarketplace.commercialcontentcouldbedeliveredbyforvideo,printand audio(ducoffe,1996).itbecomesapopularadvertisingplatformbecausemarketers foundthattheinternetpossessgreaterflexibilityandcontrolovertheadvertising materials,interactionandcosts.(chan&li,2010;faber,lee,&nan,2004)online marketerscandelivercontentviaanychannels,inanyform,andprovideinformationat anydegree.(ann,sharon,&alaina,1999) FacebookAds Facebook spaidcommunicationandadvertisingtool Facebook(is(the(elephant(in(the(social(media(marketing(living(room.(The(site(is(enormous( and(daunting,(and(everybody(is(still(figuring(out(the(best(ways(to(market(within(it.( p172 (Barefoot&Szabo,2009) Facebookmainrevenuestreamisthroughadvertisingbygettingbusinessestospend moneytoreachusersinsidefacebook.(hof,2011)thisisdonethroughtheiradvertising tool,calledfacebookads.facebookadsarefacebook spaidcommunicationtoolfor businessesthatusethesite.adsaremessageswrittenandpublishedbybusinesses themselves,andarerecognizedbystatingthecompanyname,messages,visualassets (photo,videoetc.),whichpeopleareengagedandcomments.(center,2014f;facebook, 2014a)Itisanextensionofthefreecommunicationalternatives,butitisnotlimitedto 15

16 thosewhohaveestablishedafacebookpage,butexposurewillberestricted.(marrs, 2014) ThedifferencebetweenFacebook sfreeandpaidalternativeisthroughthepotential reachofusers.whilefacebookpagepostsarelimitedtoorganicreachandqualityof content,(facebook,2011)arefacebookadsmoresimilartothemoreestablishedonline advertisement,displayads.theadcostvariesdependingonseveralfactors;competition andcontentqualityaremaindeterminants,butintheendpriceissetinanauctionfor targetmarket.businessescanpaytoreachalargeraudiencethanwithpeoplethathave likedtheirpage,anddespitecontentquality.(facebook,2014a;marrs,2014) BusinesseshavemultiplewaysofusingFacebookAds.Therearepagepostvideoad, pageposttextad,pagepostphotoad,pagelikead,offerad,mobileappad,eventad, domainad,anddesktopappad.(center,2014a,2014b,2014c,2014d;facebook,2014b, 2014c,2014d,2014e,2014f;Huber,Mulazzani,Kitzler,Goluch,&Weippl) Thetwomaincategoriesare SponsoredStories and Placements.Sponsoredstories areaboutcommunicationamongusersthatevolvesaroundabusiness,andpromoting thosestoriessothatmorepeoplecanseeit.placementsareaboutadsandsponsored storiesthatappearindifferentplacesonfacebook.theseplacescouldbethemain FacebookNewsFeed,mobileNewsFeedortherightadcolumninsideFacebook. (Facebook,2014a) Note:Facebooknowalsooffers Premiumads,butthesearenotavailableforselfV service.currently,businessesneedtospeakwithafacebookrepresentativetoorder thesetypesofplacements.(center,2014e) SMMKarelationshipmarketingtool Thetechnicalinfrastructureandinteractivitypossibilityofsocialmediaplatforms, combinedwithabusinessservicemindvsetmakesitatooltobuildcustomerbonding. (Szmigin,Canning,&Reppel,2005)( Relationshipmarketingcomestofullbloomwhentalkingaboutsocialmedia.The communicationstyleisforcedfrominformationaltorelational(virtualcommunities). 16

17 (Kozinets,1999)Theessenceofsocialmediainvolvesrelationship,andsomemarketer s can tseeamorepracticalmethodofdoingrelationshipmarketingthanwithsocial mediaplatforms: Social(media(is(today s(most(transparent,(engaging(and(interactive(form(of(public( relations.(it(combines(the(true(grit(of(real(time(content(with(the(beauty(of(authentic(perxtox peer(communication.( (Lisa(Buyer.((Cohen,(2011)( ( Centralfeatureofrelationshipmarketingiscommunicationwithcustomers.Involving consumersinmarketingdialoguesisanattempttoachievebrandconnectionand loyalty.(andersen,2005)theinteractivityenablestotranslategoodmarketinginto goodconversations,byestablishingamore humanface tothemarketplacewithout losingthescaleofeconomicsofmassmarketing.(chan&li,2010) Researchersrecognizedfourwayscompaniesorganizedonlinecommunitytonotonly servetheirownpurpose,butalsobuildrelationships. Figure.2.Four.possibilities.of.organizing.an.online.community.by. Szmigin.(2005). AHelp(group(thatisanonVprofitandcontentfocused. AValue(exchangecommunitythatiscustomerfocusedevolvingarounddialogue tomakeaprofit. TheFan(club(thatthemainpurposeisfortoprovideinformationandnotprofit. 17

18 TheDefence(organization(thatisvendorfocused,withavailableinformation,but littleopportunitytointeract.(szmiginetal.,2005) Themarketingapproachwillchangewhenbuildingsocialconnections.Connections basedonrelationships,rapportandtrustbetweentheorganizationandconsumers,can causeimprovedattitudetowardscompanybrand.(gilvor,2010) FacebookPages Afree Relationshipmarketingtool forcompanies Facebook(has(put(significant(effort(into(creating(a(platform(that(individuals,(businesses( and(organizations(can(use(to(promote(themselves.(these(are(facebook(pages. (Skellie, 2011) Havingfollowersandbuildingarelationshipwiththemisofmajorimportance,because businessesneedthemmorethantheoppositewayaround.(qualman,2011) FacebookPagesisthetoolthatallowsbusinesses,organizations,artists,celebritiesor brandstobuildconnections,sharecontent,andenablesdirectcommunicationwith interestedusers.(facebook,2012c) FacebookPageswasintroducedin2008,andwasbuilttoallowofficialrepresentatives ofbusinessestocommunicatebroadlywithusersthatlikethem.theconnectionismade whenfacebookusers Like abusinessfacebookpage.(facebook,2012a) BusinessescanusethisasatooltoconnectwithpeoplethatuseFacebook,bybuilding customizedpagesthatcouldincludeapps,eventhostingandpostingdifferenttypesof content. FacebookPageshavefunctionsthatarepreVdesignedandinstalledmakingbusinesses abletointeractwithanunlimitedamountoffansthatlikethepage.apagewillappear forallusersiftheysearchforitinsideoffacebookortrytofinditinfacebookpage Directory.Pageswillalsoappearinaninformationtabontheusersprofileforusersthat likesaparticularpage. WithFacebookPagesabusinesscanexpresstheiridentity,reachabroadaudience,and theabilitytorespondquicklyandpersonaltousers.(facebook,2012c) 18

19 Pagesslowlyacquiredallofthesamefeaturesaspersonalprofiles,andtheyarethe naturalplacetofocusyourcorporatefacebookefforts. (Barefoot&Szabo,2009) Eventhoughtheylooksimilar,thereareadifferencebetweenFacebookPagesand ProfileTimelines.Profilesaremadeandcontrolledbyprivateindividualsandare recognizedbythefacebookuserspersonalname.pagesaremadeforandrecognizedas organizations,businesses,brandsorcelebritiestohaveaprofessionalpresenceon Facebook.(Facebook,2012a) SMMKelectronicWordofMouthmarketingtool(eWOM) WordofMouthistheagelessphenomenonoftransferringinformationfromone individualtothenext.marketingmessagesdeliveredinthiswayisconsideredmore credible,becauseitcomesfromafriendortrustedadvisorthatreceivesnofinancial benefitsforpassingtheinformation.(gilvor,2011) ElectronicWordofMouth(eWOM)communicationscantakeplaceinvariousways,exist inseveralformatsanddifferenttermshavebeenusedtodescribeit.electronicwordof Mouth,BuzzmarketingorViralmarketingisaboutgettingacommercialmessagespread organicallybytheviewerstofriendsandfamily,whichisbysomeconsideredasofthe holygrail ofdigitalmarketing.(gilvor,2011;teixeira,2012) TheabilityofelectronicWordofMouthcommunicationonsocialmediaplatformsis transferringpowertotheindividualconsumer.themessageofonepersoncannowbe heardbyfarmanypeoplebytheleverageoftechnology.ifthemessagetakeson,itwill mostlikelycreateamultiplyingeffectforbothpositiveandnegativemessages.(carlsen, 2009;Røren,2009) Eventhough,itishardformarketerstocontrolthemessage,theeWOMmarketinghas becomeincreasinglypopularwiththeprosperoususeofsocialnetworkingplatforms. Interactionandspreadingmessagesthroughsocialmediahasbecomethefacto communicationstandardamongfriendsonmostelectronicdevices.(gilvor, 2011)Poweredbycheapandeasycommunicationtechniques,amessageabouta product,serviceorcompanycanbespreadfast.(dobele,toleman,&beverland,2005) 19

20 The Like button Facebook s ewomtool Twitter scurrencyismadeupoffollowersandretweets.onreddit,itisupvotes.for FacebookPages,itisLikes.(Skellie,2011) The Like buttonwasintroducedonfacebookinfebruary2009,enablingpeopleto connectwiththingstheycareaboutbothonandofffacebook.(facebook,2012d) Itisthefeaturethatisusedtogivepositivefeedbackbypeopletothingstheyenjoyor careaboutonfacebookorfacebookintegratedwebsitesorapplications. Therearethreemainthingsthatusersareableto Like.ThisisaFacebookPage,status updates,andpublishedcontent.themostimportant Like istheonewhenauserlike afacebookpage,becausethismeansthattheyarenowsubscribedtoallfuturecontent distributed.(skellie,2011)thisissimilartopeopleconnectingwitheachotherthrough FriendRequests. Just(as(you(have(Facebook(friends(associated(with(your(profile,(your( page(has(fans( p181 (Barefoot&Szabo,2009) PageLikesareimportantbecausethoseenableabusinesstogetafuturefeedbackfrom workputintofacebooktoday.(skellie,2011)thismeansthatabusinessshouldtryget asmanyactiveusersaspossible.anactiveuserisapersonthathaveengaged,viewedor consumedcontentfromyourfacebookpage.(facebook,2012f) TheLikebuttoniscreatedtogiveaneasywayforuserstoletsomeoneknowthatheor sheenjoyafriendspost,orwanttoconnectwithabusinessthroughhisorherfacebook Page. TheconnectionismadewhenusersclicktheLikebuttononaFacebookPage,posted contentoranadvertisementonfacebook.facebookwilldisplaythisconnectiononthe usersprofilewall.itcanbedisplayedintheusersprofilenewsfeed;onthepagethey connectedto,orinanadvertisementforthatpageonfacebook. ThisconnectionallowsaFacebookPagetopostcontentonausersprofilenewsfeedor sendthemmessages.theconnectioncouldalsobeusedinintegrationwithapplications thataremadecompatiblewithfacebook.(facebook,2012e) 20

21 WhenLikingaPagemeansthataFacebookusersismakingaconnectionwiththat particularpage,andwillreceiveinformationandcontentontheirnewsfeedthatwillbe postedinthefuture.thisiswhatfacebookusedtocall becomeafan.whilelikinga specificpostsimplymeansthattheuserenjoythatparticularpostwithouthavingto leaveawrittencomment.usersareabletolikeafriend spostorapage post.(facebook,2012e) ThreebusinesschallengestoSocialMediaMarketing Themarketingvalueofsucceedingwithsocialmediaisdifficulttocalculate.(Desmond, 2010)However,comparingthedeliveringcostsoftraditionaladvertisingmakesiteasier tounderstandtheimportanceofhavingsocialmediastrategy.(jerijervi,2014) (HarridgeVMarch,2004) Thepricetopayforasocialmediastrategydoesnotonlyincludedeliverythecost: Argumentsabouttimeandresourcesshouldnotbeforgotten.Thecostofhavingasocial mediastrategymustincludetimespentonplanning,producingandparticipating. (Bulearca&Bulearca,2010) AccordingtoWebtrends,thatevaluatedmorethan11thousandadsonFacebook,came totheconclusionthatcommunicationthatwasforceduponusershadashortlifespan. Paidsocialadvertisementonlygotthreetofivedaysbeforetheyareoffertoad blindness.(webtrends,2011)constantsurveillanceandsomechangeinadarerequired tokeepitaliveandtomakemoney.(jerijervi,2014) Wehaveidentifiedthreebusinesschallengestosocialmediamarketing: 1. Communityorcommercialplatform ( Social(Media(is(not(a(marketing(channel(or(a(branding(channel.(It s(a(communication( platform ((Funk,2011) 21

22 Socialmediaisprimarilyaboutbuildingrelationships,andtheproblemformarketersis thatsocialnetworksareaboutpeopleandnotcompanies.(barefoot&szabo,2009)this makesthecommercialcommunicationchallenging. Figur.3.A.Marketing.Communication.Model.in.Social.Network.Sites. (Lee,Jarvinen,&Sutherland,2011) Scepticismforusingsocialmediaasamarketingchannelisbasedonthatthesearetools forinteractionamongpeopleandtheirpersonallives,andnotaspromotionchannelfor productandservices.(chunsiketal.,2011) Socialmediamarketingmayraiseabusinessvisibilitytoclients,prospectsandeven traditionalmedia.itprovidesanopportunitytostaymorefrequentlyintouchwith customers,andintroducenewprospectstoabusinesssalesfunnel.(martin,2010) However,FunkarguesthatSocialmediamarketingisanoxymoronbecausebusinesses shouldonlybepresentforcustomerserviceandnotadvertising.(funk,2011) 22

23 2. PushorPullmarketing insocialmedia Adiscussionaboutsocialmediamarketingisalsorevolvingaroundtheconcept Pushor Pullmarketing.(Push(is(representingmarketinginthetraditionalwaywhichthe advertisingactivitiesrevolvearoundonevwaycommunicationofamessagethrough massmedia.(schultz,2006)thisrepresentsaconcern,becausebuildingconsumer demandwiththisapproach;pushingadvertisementandmassmarketingmessagesis disregardingthemainassetsofasocialmediaplatform.(gilvor,2010) (Kelly,Kerr,&Drennan,2010) Figur.4.Schultz s.(2008).pusxpull.model.of.marketing.communications Pullmarketingiswhenthepotentialcustomerrecognizesaneed,wantorajustwishfor aproductorserviceandmakestheinitiative.theprospectseeksinformation,a purchasesolutionorcontactthatthemarketerwillrespondtothen.(schultz,2006)in the2009mckinseyquarterlyreport,hoffmanarguesaboutthedevelopmentofweb2.0 anditssocialaspect.itshouldbeacrucialelementofthemarketingmix,butmorethan justanotheradvertisingchannel.insteadofamassvmediabroadcast,companiesshould maketheirmarketingmoreinteractive(hoffman,2009). Theshiftfrompushtopull(marketingisarguedtobeinevitable.Consumersareavoiding messagesandinterruptivecommunicationfromorganizationsthattheydonotwantto buildarelationshipwith.(schultz,2006)thismightexplainthat43%ofsocial networkersuserneverclickedonads.(zeng,huang,&dou,2009) 23

24 3. AdvertisingAvoidanceinOnlineSocialNetworkingEnvironment Customersactivelyavoidlookingatonlineads.(XavierDréze,2003)Everincreasing amountofcommercialmessagesthatbombardsconsumersinallmediacausesthewellv knownproblemformarketers,advertisingavoidance.(speck&elliott,1997) Commercialmessagesinsocialmediamakeitmoredifficulttodistinguishbetweenwhat isadvertisementandwhatisaconversation.thismightcauseuserstoquestionthe credibilityofthemessagesthatarecommunicated.accordingtomoore,theconceptof credibilitysoneofthemostimportantcomponentsofapersuasivemessage.(j.j.moore &Rodgers,2005)NutleysaysthatSocialnetworkingsitesneedtobeconstantly balancingbetweenadvertisingrevenue,andusersdemandforuninterruptedsocial experiences.(nutley,2007) Advertisingavoidanceinanonlineenvironment,andespeciallyinthesocialmedia sphereisnotawellvresearchedtopic.kellyetal,developedamodelforadvertising avoidanceonsocialmediaplatforms,wheretheyfoundfourinfluencingfactors.these areexpectation(of(negative(experience,relevance(of(advertising(message,scepticism( Aboutthe(Advertising(message,andScepticism(About(Online(Social(Networking(as(an( Advertising(Medium.(( Figur.5.Model.of.Advertising.Avoidance.in.the.Online.Social.Networking.Environment. ( 24

25 Theimplicationsofthemodelrevealabetterunderstandingofwhyadvertisinginsocial networkingenvironmentisnotassuccessfulassomeanticipated.thefactorsshowthat advertisingmessagesinthosechannelsmightnotbewellreceived.iftheydonot capturetheinteresttothereceiver,itmightaswellbeignored.ifmessagedonotmatch themediaenvironment,itismostlikelydisregarded.(kellyetal.,2010) 25

26 LiteratureReview This(chapter(is(intended(to(give(an(overview(of(past(research(done(about(technology( adoption(and(acceptance(factors(that(could(be(relevant(to(the(thesis.(this(includes( classification(of(adopters,(davis s(technology(acceptance(model(and(four(conceptual( constructs(that(are(synthesized(from(the(various(findings(in(the(literature(review.((a( literature(review(table(is(included(as(an(appendix.)( ResearchingTechnologyAdoptionFactors Getting(a(new(idea(adopted,(even(when(it(has(obvious(advantages,(is(difficult.(Many( innovations(require(a(lengthy(period(of(many(years(from(time(when(they(become(available( to(the(time(when(they(are(widely(adopted. ((Rogers,2003)( Thetheoreticalfoundationinthisresearchwasinspiredbypreviousworkdoneto understandtheuseofnewinnovativetechnologyinbusiness.thoughtechnology acceptancedependsondifferentfactorsandvariesbasedonindustriesandsituation, thetechnologyacceptancemodelbydavisanddiffusionofinnovationmodel popularizedbyrogers,stoodoutasagreatstartingpointforaliteraturereview. GeoffreyMoore sbook: CrossingtheChasm hashelpedwiththeimportanceof understandingthediffusionofinnovationprocessfortechnologycompanies,where practicaladviceisgiventotacklethechallengingadoptionlifecycle.(g.a.moore,2002) Thecategorizationoftheidealcharacteristicsofeachpartoftheadoptionlifecyclewill beusedfortheclassificationofmanagers. TheTechnologyAcceptanceModelisoftenusedtoexamineadoptionoftechnologyin smallandmediumsizedfirms.accordingtoparkerandcastlemantherehasbeen extensiveresearchtoexplorefactors(barriersanddrivers)thatinfluencesmeownerv managersadoptiondecisionsofelectronicbusiness,(parker&castleman,2009)butby reviewingtheliteratureitwasnotdetectedanystudiesthathaveappliedthe TechnologyAcceptanceModeltothefieldofSocialMediaMarketingspecifically.This lackofresearchwasalsonoticedinthefieldofevmarketingingeneral.theneedto conductmoreresearchtoinvestigatethemodeltoevmarketingwasrecognizedbyelv 26

27 Goharyaslateasin2012.Healsounderlinesthatthereareevenfewerstudiesthat investigatesadoptionbysmallfirms.(elvgohary,2012) ClassificationofAdopters TechnologyAdoptionLifeCycle ThewellVestablishedcategorizationofadopterscomesfromRogersworkwiththe DiffusionofInnovationmodel.Adoptionofinnovationdoesnothappenatthesametime amongallmembersofsociety.therefore,hedevelopedanefficientandconvenient standardizationmodelforcategorizingdifferenttypesofadoptersbasedonasequence oftime.(rogers,2003)thishasmadeitpossibletodivideadoptersintofivegroups dependingonwheretheyareintheinnovationadoptionlifecycle.theseusersare labelledinnovators,(early(adopters,(early(majority,(late(majority(and(laggards. Figur.6.Classification.of.Adopter.Categories.on.the.technology.lifecycle.curve. Theycanbeidentifieddependingontheyarelocatedonanormaltechnology distributioncurve,alsocalledthe bellcurve basedonthelevelofinnovativeness. Innovativenessisarelativemeasurement,butisdefinedbyRogeras: The(degree(to( which(an(individual(or(other(unit(of(adoption(is(relatively(earlier(in(adopting(new(ideas( than(other(members(of(a(social(system.(rogers,(2003) (( Thiscategorizationhelptounderstandwhytherearedifferentattitudesamong membersofsocietywhenitcomestoadoptionofnewideas.thisissobecausethereare 27

28 supposedlydifferentcharacteristicsoftheidealtypesineachcategorythatmake comparisonofadopterspossible. ThecharacteristicsoftheInnovatorsarethattheyareventuresome.Theyare fascinatedwithnewideasandtechnologytothedegreethatitcanberisky. Membersofthisgroupmustbewillingtoacceptsetbacksoftechnologythatis unsuccessful,andlackofrespectfromothermembersofsociety. Early(Adoptersarerespectedindividualswiththehighestdegreeofopinion leadershipinasocialsystem.theyareoftenlookeduponforadviceand informationaboutaninnovation,andwhentheydodecidetoadoptanewideait isasignofapprovalofit. Early(Majorityadoptsnewideasearlierthantheaveragememberofsociety,but theyspenttimedeliberatingbeforeadoptingit.theyinteractwithpeers,butthey arenotinanopinionleaderposition.thesearetheimportantusersforcrossing thechasmbetweenwhatmooreidentifiesassuccessorfailureforreal commercialpotential.illustratedasagapinthefigureabove.(g.a.moore,2002) Late(Majorityismorescepticalindividualofasocialsystem.Theyarethosewho adoptnewideasslightlyaftertheaverageperson.pressurefromothermembers, trendsinsocietyoreconomicnecessitycauseadoption.theyarenoteasily convincedifinnovationisnotofgreatadvantage. Laggardsareconsideredtobetraditionalintheirthinking.Theyaresceptical towardstechnologyandthosepromotethem.theirresistancetonewideas seemstothemtoberational.weretheymustbesurethatthetechnologydoesn t failbeforeadopting.theysurroundthemselveswithsimilarmindedpeople,but havealmostnoopinionleadership. LeadershipTypologiesforTechnologyAdoption InanarticlebuiltupontheDiffusionofInnovationtheoryandTechnologyAcceptance Model,A.JSpenceret.al(Spencer,Buhalis,&Moital,2012)developedanewmodelthat illustratesnewleadershiptypologiesateachleveloftechnologyadoptionforsmalland mediumsizedbusinesses.theyviewtheroleofpersonalfactorssuchasownershipand leadershipispartofthekeydriversfortechnologyadoption.thesebusinesseshad 28

29 managersthatthemselveswereownersthatprovidedleadershipfortheorganization. Rogers,alsoidentifiestheimportanceofopinionleadersmayassistwiththeinnovation diffusionprocess.(rogers,2003) Theorganizationofasmallsizefirmisoftenstructuredwithlowlevelsofhierarchyand haslessbureaucracy.leadersofsmallfirmsaretheownersthemselves,makingtheir personalattitudesinitiatorsorbarrierstotechnology.withtheidentificationof leadershipandattitudesofmanagementasbeingakeyfactoroftechnologyadoptionin firms(spenceretal.,2012;wöber&gretzel,2000),aclassificationdoneonthislevelis importanttothisthesisbecausethesubjectsfortheanalysiswillmostlikelybethe owneraswellasthemanagersofthebusiness.theleadershiptypologiesareidentified asresistors,(enforcers,(stabilizers,(reactors(and(converters. Figur.7.Leadership.typologies.for.staged.technology.adoption.(OwnerXmanaged.small.firms). (Spenceretal.,2012) 29

30 Resistorsareleadersthataretheleastlikelytoissuechangeinfirm stechnology capabilities.theyaremoreintomaintainingtheirtraditionalways,andsees themselvesaslowvrisktakers.theyhavegotlowtechnologyknowledge,anduse onlycomputersforbasicfunctionsandtriestomaintainthisposition. EnforcersaresimilartoResistorsinmanyways,andareonlywillingtochange theirwaysifnewtechnologyisconsideredtodevelopnewproceduresandgivea completechangetotheindustry. Stabilizers(areleadersthatconsiderthemselvestobemediumVrisktakers.The individualpassivelyadjusttechnologybasedontheorganizationsproblemsor opportunities,withhelpfromothers.afterincidentshavepassed,theyreturnto businessasnormalbeforethesituationoccurred. ReactorsarethoseleaderscategorizedasmediumVrisktakersthatmoreopento ideasofchange.thetypicalpersonisnotresistanttonewinnovations,butis usuallybehindintheapplicationoftechnology. Convertersarethetypeofleaderwhoisconsideredtobeaveryactivechange agent.thetypicalleaderhasalongvtermvisionforthebusiness,considerasa highvrisktakerwithtechnologyexperienceandhigheducation. TAM TechnologyAcceptanceModel SeveralstudieshaveindicatedthattheTechnologyAcceptanceModelfactorsaregood predictorsforexplainingtheuseoftechnology.researchersshowedthatthe TechnologyAcceptanceModel(TAM)isindeedvalid,robustandpredictivemodelthat couldbeusedinavarietyofcontexts.researchersresultshaveproventamtobe consistentovertheyearssinceitwasproposed.(king&he,2006;legris,ingham,& Collerette,2003;Schepers&Wetzels,2007) DavisproposedtheTechnologyAcceptanceModelin1989.Thepurposehisresearch wastopursuebettermeasuresforpredictingandexplaininguseofinformation Technology.(Davis,1989)Itwasdevelopedtoevaluatethemarketpotentialfor emergingtechnologyfromibmcanadaandtheirmultivmediapcvapplications.(davis& Venkatesh,1996)HebasedthetheoryonanexistingmodelcalledtheTheoryof ReasonedAction(TRA)thatweredevelopedbyAjzenandFishbein(Lederer,Maupin, 30

31 Sena,&Zhuang,2000),whichisapsychologicaltheorythatisusedtoexplainbehaviour. ItwasusedasastartingpointbecauseitwasassumedthatTRAwascloselylinkedto actualbehaviour.(king&he,2006)thetechnologyacceptancemodelisdesignedto measureandpredictactionintheimmediatefuture.(parker&castleman,2009) Davisinvestigatedandvalidatedtwotheoreticalconstructs,Perceived(Usefulness(and( Perceived(Ease(of(Use.(He(defines(Perceived(Usefulnessas the(degree(to(which(a(person( believes(that(using(a(particular(system(would(enhance(his(or(her(job(performance. Perceived(ease(of(use(herefersto the(degree(to(which(a(person(believes(that(using(a( particular(system(would(be(free(of(effort.(davis,1989)itissuggestedthattheyarethe twomostimportantfactorsinexplainingsystemuse.(legrisetal.,2003) ThesemainfactorsofTAMarepredictorsofanindividual sattitudetowardsuseand intensionstoadopttechnology.thisindividualisticapproachisaimedtopredict behaviourintentionsofpeople.ithasbeenappliedinsmallfirmevbusinessadoption researchbecausetheownervmanagersareassumedtobetheprimarydecisionmakers, andthusthemostimportantelementofadoption.(parker&castleman,2009) Animportantpurposeofthetheoryistoprovideabasisfortrackingtheimpactof externalvariablesoninternalbeliefs,attitudesandintentionsfortechnologyusage.the modelshowsthatperceivedeaseofusehasadirecteffectonperceivedusefulnessand bothdeterminetheusersattitudetowarduse.thiswillagainleadtobehavioural intentiontousethesystemandfinallytoactualusage.thisisillustratedintheoriginal TechnologyAcceptanceModel,thatconsistsofthecomponents:External(Variables, Perceived(Usefulness,(Perceived(Ease(of(Use,(Attitude(Towards,(Behavioural(Intention(and( Usage.((Legris(et(al.,(2003)(( ( 31

32 Figur.8.The.original.Technology.Acceptance.Model.illustrated.by.Davis.(1989). TAMhasproventobeatheoreticalmodelthathelpstounderstandandexplainuse behaviourwhenimplementingtechnology.ithasbeenoneofthemostcommonlyused modelstoexplainusageininformationsystems,duetothesimplicityandits understandability.nevertheless,themodelhasevolvedovertimetotrytoexplain imperfectionsoftheoriginalmodel.(king&he,2006;legrisetal.,2003) Findingsabouttheeffectsofthefactorshavenotalwaysbeensignificant.(Ledereretal., 2000)ThishasledtoexpansionoftheoriginalmodelhastoTAM2,TAM3andUnified TheoryofAcceptanceandUseofTechnology(UTAUT).(ElVGohary,2012)Thesetheories includeseveralothervalidatedtechnologyacceptancefactors,suchassubjective norm,(schepers&wetzels,2007)image,jobrelevance,outputquality,result demonstrability,voluntariness,performanceexpectancy,effortexpectancysocial influence,facilitatingconditions,gender,ageandexperience.(legrisetal.,2003) Evenso,theoriginalmodelisstillrecognizedandusedbyotherresearchersasa successfulandvalidmodeltopredictandexplainusageofnewtechnologyacrossawide varietyofdomains.(elvgohary,2012;moon&kim,2001) ConceptualClusteringofAdoptionFactors Fortheliteraturereviewitwasfoundseveralstudiesaboutfactorsfortechnology acceptanceinsmesotherthantheonesconstructedinthetechnologyacceptance Model.Someofthestudiesweremorefocusedabouttheroleofmanagerasowner. Thereareafewarticlesthatfocusonmarketinginsocialmedia,andsomeabout consumer sattitudestowardsadvertisementinthesocialmediarealm.onearticlewas aboutinvestigatinghoteliers attitudestowardtheuseofsocialmediaasabranding 32

33 tool.(nassar,2012)butnonespecificallyabouttheattitudesofowner/managerin small/mediumsizedbusinessestowardsadoptingsocialmediatechnologyaspartofa businessormarketingstrategy. Thisliteraturereviewhelpedtoseeaconceptualclusteringoffactors.Reviewing literatureaboutfactorsforadoptionoftechnologyinsmesandalteringittosocial media,ledtothefourconceptualaggregatedfactors.theseconceptualclustering sfor thisthesisarecompetitive(pressure,competency,cost(and(compatibility.( CompetitivePressure Thefirstconceptualclusteringisunifiedundertheterm CompetitivePressure. Respondingtocompetitor sstrategywasnotjustafactorthatwasmentionedinseveral studies,butitwasconsideredasthemaindriverofadoptionofevcommerceby678 SMEsintheUK.(Daniel&Wilson,2002)ThisisconsistentwithfindingsfromElVGohary huntforfactorsaffectingadoptionofevmarketing(elvgohary,2012),andgrandon& Pearson,whoidentifiedfourinfluencingfactorswerethesecondmostimportantwas respondingtoexternalpressure.(grandon&pearson,2004) Eventhoughitseemsasowner/managersaredriventoadopttechnologybasedonthe fearofgettingleftbycompetitorsbehind,orloosingoutonopportunities.(r.darby, Jones,&AlMadani,2003;King&He,2006)notallresearchershadthesameresults: WhenresearchingthestrategicuseoftheInternetbySMEsintheNetherlands,results showedthatcompetitivepressurewasnotainfluencingfactor.(sadowski,maitland,& vandongen,2002) Notethattheterm CompetitivePressure isusedasaunifyingconstructtosimilar technologyacceptance/adoptionvariablessuchaspressure(from(external(environment,( industry,(customers,(competitor s(usage(and(intensity(of(competition(avlonitis& Panagopoulos,2005;Daniel&Wilson,2002;deValck,vanBruggen,&Wierenga,2009; ElVGohary,2012;Sadowskietal.,2002).Moreexamplesvariablesarecultivating( customer(relationships,(attract(new(customers(and(build(brand(awareness.(bhanot,2012; Karagozoglu&Lindell,2004;MortezaGhobakhloo,2013)Theseareallvariablesthat clusteredtogetherundertheconceptualconstructofcompetitivepressure.( 33

34 Competency Thelevelofcompetencyiseitheradriverorabarrierforadoptingtechnology,andin thisresearchit(canbeviewedhereashavingthenecessaryknowledgeorskillto understandandadequatelydetermineadoptionofsocialmediatechnology. The( competency(of(management(to(master(emerging(technologies(will(often(determine(the( success(or(failure(of(a(business(venture (R.Darbyetal.,2003) ThetermCompetency(isaunifyingtermthatcomesfromclusteringseveraladoptingand technologyacceptancevariablesfromtheliteraturereviewforthisthesis.thismeans thatthefactorincludesvariablesthatareeithermentionedorfoundtobesignificant factorsforadoptiontechnology.competencyisbasedonvariablessuchasinformation technology/computer:ownerskill,experience,knowledge,understanding,selfvefficacy, organizationalreadinessandcultureetc.(ahearne,hughes,&schillewaert,2007; Avlonitis&Panagopoulos,2005;ElVGohary,2012;King&He,2006) Competencyatindividuallevel,Kietzmannetal,foundthatmanagersoftenarehesitant orincapabletostructurestrategiesandfindresourcestoparticipatewithsocialmedia. (Kietzmannetal.,2011)Whileastudyfrom2010foundthatseveralmanagersdon t understandit.socialmediamarketingisatechnologythatrequiresbothunderstanding for whytouseit,aswellas howtouseit.eveniftheycouldhavetheproper knowledgewhytheyshoulduseit,theydon thavetheknowvhowexperience.(kaplan& Haenlein,2010) Competencyatorganizationallevel:Ifmanager slacktechnicalskillsand/ordon thave theproperknowledgeorcomputerselfvefficacy,(king&he,2006)theywouldhaveto dependonorganizationalsupportandreadiness.whichwasfoundtobethemost importantdeterminantfactorofstrategicvalueandadoptionofevcommerceinavariety ofsmesbygrandon&pearsonstudyfrom2004.(grandon&pearson,2004) 34

35 Costs Thethirdaggregatedconstructistheconceptof Cost.Forthisresearchthetermis unifyingtermalldrivingvariablesorbarriersthatwerefoundintheliteraturereview thathastodowith costs ofadoptingandacceptingtechnology.theseareboththe willingnessofowner/managerstoinvestmoneytoreducecost(kaynak,tatoglu,&kula, 2005),and/orthenegativeattitudestoaccumulateexpensesthatareconsidered additionalcosts.(fillis,johansson,&wagner,2003) Costs includeadoptionfactorsthatwereeitherconsideredbyresearchersaspositive ornegativeduetothefinancialimplications.thiscouldbetheopportunitytosave moneyorreduceexpenseselsewherebyimplementingtechnologicalinnovations. WhichwerefoundtobeperceivedbenefitsbyDanielandGilmoreet.al.(Daniel,2003; Gilmoreetal.,2007)Orthenegativeassociationofthattheupfrontinvestmentsareto highandreturnoninvestmenttolow,causingmanagerstoignoreoravoiditduetothe financialconstraintsonorganization.(gilmoreetal.,2007;macgregor&vrazalic,2005) InBhanotresearchfrom2012aboutsocialmedia,therewerefoundthreemainreasons forwhybusinessesshoulduseit:the Lowcost,highlyaccessible Vfactorwerethe mostimportantasforwhybusinessesshouldconsidereditastooltoreachoutto customers.(bhanot,2012) Compatibility CompatibilityisoneofRogers sfiveinnovationattributesthatdeterminemostofthe rateofadoption,andisdefinedbyroger,as the(degree(to(which(an(innovation(is( perceived(as(consistent(with(the(exiting(values,(past(experiences(and(needs(of(potential( adopters.(rogers,2003) Fillis,foundthatthegreaterperceivedcompatibility,themorelikelytechnology applicationswillbeadoptedbysmallbusinesses.(fillis,johannson,&wagner,2004)ina studyfrom2005aboutbarrierstoevcommerceadoption,barriersweregroupedinto twomainfactors.oneofthemtheylabelled Unsuitable,(MacGregor&Vrazalic, 2005)whichissynonymoustocompatibility/incompatible.Kendaletalsupport 35

36 compatibilityasasignificantfactorintheirresearchforwillingnesstoadoptev commerce.(kendall,tung,chua,ng,&tan,2001)themostsignificantbarrieristhelack ofperceivedrelevanceforparticularsectors.(michaelidou,siamagka,&christodoulides, 2011) Differentcommunicationrequirementswereoftenusedasdeterminingfactorsfor adoptionofinformationtechnology.theneedforcommunicationwithcustomers,give andreceivefeedback,provideinformationandenhancecustomerservice(bhanot,2012; Daniel,2003;Sadowskietal.,2002),willaffectthesituationandtheneedofhavinga socialmediapresence.othervariablesthatareclusteredundercompatibilitytermin thisthesisarevariablessuchas:afirm stypeofmarket/industry,product,customers anddailyworktasks.(fillisetal.,2004;mcfarland&hamilton,2006;wierenga&oude Ophuis,1997) 36

37 ResearchModelandHypothesis This(short(chapter(is(dedicated(to(present(the( Facebook(Marketing(Adoption (research( model(and(the(following(hypothesis.( ( ResearchModel Basedonthetheorypresentedinthisthesis,aresearchmodelisproposed.Influenced by,first,thebuildingblocksofsocialmediaandsocialmediamarketing.second, revealingboththemarketingopportunitieswithfacebookandthechallengesofsocial mediamarketing.andthird,theexplorationoftechnologyacceptance/adoptionfactors intheliteraturereview. Theresearchmodelconsistsofonedependentvariable.Fourconstructedaggregated independentvariablesandoneimposedindependentvariablebyresearcher.the dependentvariableis AdoptionofsocialmediamarketingwithFacebookbyNorwegian healthclubs,shortened FacebookMarketingAdoption.Thefouraggregatedvariables are Perceived(Competitive(Pressure,( Perceived(Competency,( Perceived(Costs (and Perceived(Compatibility.(Thesefactorsarebasedontheconceptualconstructs describedpreviously. Theimposedvariableis Leadership(Priorities.Itwasnotfoundanyarticlesthattalk specificallyaboutthisterm,howeverthefactor Leadership(Priorities isbasedonthe classificationofadopters/managers.thereasonwhyitisincludedisbecausethough somemanagerscouldfindusingsocialmediaasimportantpartoftheirbusiness strategy,doesn tmeanthattheywouldconsideritassomethingurgent.makingitatask thatisnotprioritizedaspartofthedailytasksforthemselvesortheorganization, causingittobeaprocrastinatedstrategy.withlimitedresourcesavailable,abusiness owner/managerisforcedconstantlyprioritizeactivitiesineveryaspectofthebusiness. Thisprioritizingnecessitymaybeanimportantfactorfornotadoptingsocialmediaasa partofthebusinessstrategy. Thefigureoftheresearchmodeltriestoillustratethattheindependentvariables influencesthedependentvariable. 37