Exploring the Influence of Social Media on Business Owners: A Qualitative Investigation
CHAPTER 1
THE PROBLEM AND ITS BACKGROUND
BACKGROUND OF THE STUDY
Global enterprises are beginning to recognize the value of social media in business in
the current period of technological innovation. This results from the perception of the internet as
the new frontier for conducting business. It offers a platform where businesses may contact
more people while navigating obstacles like time, availability, accessibility, and geographic
distance. Social media platforms such as Facebook, Twitter, and Instagram offer businesses a
range of tools to create and share content, interact with customers, and analyze their marketing
campaigns' performance. Based on a Global Overview conducted in January of 2022, Social
media has become increasingly popular, with 4.76 billion people using it and 137 million new
users in the last 12 months. Looking back just twenty years ago, the business world was a
different place with advertising typically being conducted on TV, radio, print, and billboards. The
industry is expanding astronomically quickly. According to Jones et al. (2015), increased
awareness and inquiries, improved customer relationships, an increase in new customers,
improved ability to reach customers globally, and co-promotion of local businesses that improve
the reputation of small businesses in the area are all advantages of using websites and social
media platforms.
The Philippines ranked firsts in terms of social media activity. The country's average
daily use was over four hours, which is 60% higher than normal. This development in the
increased use of social media has presented businesses with an opportunity to strategize their
marketing activities. Business owners have embraced social media as a marketing medium
given the massive potential audience available who spends many hours a day using social
media across many platforms. Additionally, Venkateswaran et al. (2019) found that it has been
observed that using social media applications and technologies has aided businesses in better
branding their products, expanding their client base, and meeting those customers’ needs. Still,
it has also presented a challenge in determining the best way to reach out to customers and
manage their reputation online. With the widespread use of social media, business owners
should adapt to succeed in the twenty-first century.
Social media use significantly impacts the business industry, especially small business
owners. The study intends to know how business owners effectively manage public image and
reputation online through social media. Additionally, this study aims to identify the advantages
and disadvantages of the risk of using social media and the factors that influence its business
development. We will employ a qualitative approach using a qualitative questionnaire to gather
information from 20 business owners as respondents to this study. The study will be conducted
on how social media affects business owners in Agno, Pangasinan.
Statement of the Problem
This study aims to examine the impact of social media on business owners, exploring the
opportunities and challenges it presents, and investigating the strategies employed by business
owners in Agno Pangasinan. This study sought to answer the following questions:
1. How do social media influence purchasing decisions among consumers?
2. How can business owners effectively manage their public image and reputation online?
3. What are the advantages and disadvantages of taking the risk of using social media?
4. What factors influence business development through the use of social media?
RESEARCH OBJECTIVE
The study focuses on exploring the influence of Social Media on Business owners. The
objectives of this research are the following:
A. To investigate the impact of social media on the purchasing behavior of consumers and
identify the factors that influence their decision-making process.
B. To explore the strategies that businesses can use to effectively manage their online
reputation and maintain a positive public image.
C. To assess the advantages and disadvantages of using social media as a marketing tool,
examine the risks and challenges that businesses may face in implementing it.
D. To examine the factors that contribute to the success of businesses that utilize social
media for brand development, and identify the key metrics and indicators of growth.
SIGNIFICANCE OF THE STUDY
The results of this study will be of great significance to the following:
Business owners. The study recommendations and actions will be helpful to business
owners in knowing the specifications and the variable that a consumer needs and wants.
Because of this study, they will be more capable of communicating with their customers and
establishing stronger relationships through social media.
New entrants to the business world. This research will benefit the new entrants to the
business world, for this may give them knowledge in effectively understanding their customers
according to their product offering. This study allows them to see the advantages and
disadvantages of digital marketing or online business strategy.
Consumers. Consumers will benefit from this study. Online sellers and business
owners may offer clients a better online shopping experience and enhance product quality and
service as they become aware of the areas that needed development. Additionally, this will
assist them in making wise decisions about the particular goods or services they want to
purchase.
Future researchers. This study may be cited as a reference for future researchers
specifically studying business owner’s strategies, behavior, and decision-making with the use of
digital marketing. It will develop new techniques that will benefit the future researcher. It will be a
useful reference to researchers who will plan to make any related study precisely the standard
underlying the business program
SCOPE AND DELIMITATION
This study centers on how social media affects business owners in Agno, Pangasinan.
This will be conducted to determine the status of online marketing strategies in luring our target
consumers for business establishments to be known. This way, the status of the participants of
the study will focus solely on local businesses run in Agno, Pangasinan specifically food
services. Fast food chains will be excluded in this study, as the scope strictly constricts the
locally owned businesses. This study is limited to 20 business owners in the town of Agno.
Moreover, we also considered the profile of the participants in terms of age and gender
because we want to know if it has an impact on the phenomenon. This study also considered
the possible factors and the advantages and disadvantages of using social media for marketing.
In coherence with the fast modernizing society, this research will introduce a platform that will
be important for owners to manage and interact with consumers. Such a social media platform
will serve those present on the web, like Facebook, Instagram, and Messenger. Thus,
interaction will yield results that can be used for actions that will improve the business owners.
In addition, this study will employ a qualitative approach. We will conduct a one-on-one
interview. The technique of gathering data is a survey questionnaire.
DEFINITION OF TERMS
For a better understanding of the study, the following terms are defined in the context of
this research.
Global Enterprises- Those enterprises which have their headwaiters in one country but
operate their business in many countries.
Social Media- The means of interactions among people in which they create share mail or
exchange information and ideas in vertical communities and networks.
Social Platform- Group of technologies that are used as a base upon which other applicators
processes or technologies are developed.
Business Owners- One person who is in control of the operational and monetary aspects of a
business.
Business- Organization or enterprising entity engaged in commercial, industrial, or professional
activities.
CHAPTER 2
REVIEW OF RELATED LITERATURE
FOREIGN LITERATURE
The Social Media and Entrepreneurship Growth (A New Business Communication
Paradigm among SMEs in Nairobi)
The study of Jagongo & Kinyua (2013) determines how social media impacted the
expansion of SMEs in Nairobi. The target population for this study was SMEs within Nairobi. A
suitable sample response rate of 92%.was used in the study, and a descriptive research design
was used to collect data from them. Questionnaires were administered to 246 SMEs in Nairobi,
with the respondents being either the owners or managers. This was accomplished by analyzing
the impact of social media on the availability of markets, customer relationship management,
product innovation, and pricing for SMEs in Nairobi. Furthermore, social media platforms
provide increased market exposure and CRM, which substantially impact SMEs' ability to
develop. Meanwhile, social media's innovativeness features and product pricing have had little
impact on the growth of SMEs. Moreover, the research demonstrated how social media
platforms could eliminate geographical constraints. Additionally, social media enables
businesses to build a database that can be utilized to create business leads, which could result
in more significant sales and the expansion of SMEs. Social media also enables businesses to
connect quickly and affordably with clients.
Based on the result of the study, the research study suggested that decision-makers,
including the government, pay close attention to the existing patterns of technological adoption
by SMEs to develop policies that support best practices for the expansion of the SME sector.
Additionally, copyright and privacy concerns should be addressed, as well as social media
training and creating business solutions that would close the gap and encourage more SMEs to
use social media platforms, which would spur their expansion.
Social Media Marketing in a Small Business: A Case Study
In the study of Cox (2012), small businesses must comprehend Facebook, Twitter, and
the tactics behind using social media for business growth in today's social media-driven market.
Sadly, many small businesses need more strategy when they start using social media. With this,
this study aims to comprehend how a small business owner known for using social media to
grow his or her company engages customers on social media. For this research, a case study
was chosen as a research strategy, in which an interview and unobtrusive methods were the
main data collection sources. The researchers used a qualitative approach and one qualitative
phone interview was performed. An in-depth interview with the business owners as participants
in this study is conducted, followed by an examination of the company's Facebook and Twitter
posts. Additionally, the case study's findings demonstrated the various methods the owner uses
to forge and sustain connections with customers.
The researcher concluded the key takeaways: networking and building relationships with
other companies increase brand exposure; emphasizing relationships over sales increases
sales; interesting content encourages interaction; and a learning curve is one of the main entry
barriers. Social media use is a recent phenomenon that has altered how businesses function.
Access to resources that might not otherwise be available to businesses is possible. The results
of this case study revealed that the business uses a variety of strategies to build and maintain
relationships with others and keep consumers interested.
Identifying Business Value from the Use of Social Media: An SME Perspective
According to Stockdale et al. (2012), there needs to be empirical proof of such utility in
the SME context; specifically, the extent is still anecdotal. The study conducted, it investigated
the benefits that social media use can have for small businesses. The study, which is being
conducted from the perspective of an SME, begins by reviewing the pertinent literature to
pinpoint the significant concerns associated with social media usage. The websites of the case
firms are then examined, along with five well-known case studies all based in the US. The
retrieved data is then used to derive insights into the business issues and goals that drive SMEs
to adopt social media. They had drawn on published business case studies identified through
online searches to extend their ability to access a range of established cases that appear to
have been using social media effectively over time.
Moreover, businesses can find the most value for customers' involvement and loyalty.
The ability of the SME to relate to their customer base has a significant impact on the benefits
realization. The research's findings are expected to help small and medium-sized businesses
better comprehend the potential business benefits of social media. Furthermore, the
researchers concluded that identifying how smaller businesses derive business value is where
the relevance of the research findings for SMEs lies. It emphasizes the importance of planning
while keeping adaptable to the needs and demands of the interactivity those results from using
social media.
LOCAL LITERATURE
Impact of Social Media Marketing on the Perceptions of E-Shopping Customers in
the City of Santo Tomas, Batangas, Philippines
According to Briones and Sumague (2022), developing a successful advertising and
marketing plan has become possible thanks to social media. Businesses favor social media
platforms over traditional marketing methods for this exact reason. The use of social media
platforms as an alternative to conventional, expensive, and time-consuming marketing
strategies is becoming increasingly common. With this, the researchers examined the effect of
social media marketing on the opinions of online shoppers in the Philippine city of Santo Tomas,
Batangas.
The study was designed to find out how online exposure, social media engagement,
social media integration, social media activities, and social media experience affected the
perceptions of e-commerce customers. Moreover, the study pinpointed vital elements to help
social media marketing succeed. For the final objective of the study, the researchers suggested
marketing tactics in light of the study's findings. Furthermore, a suitable sample of 150
respondents was used in the study, and a descriptive-quantitative methodology was used to
collect data from them. The participants consisted of customers of Lazada, Shopee, Facebook
Marketplace, and other e-commerce websites. The respondents were selected through a non-
probability sampling technique specifically convenience sampling. Frequency, percentage
distribution, and weighted mean were employed as the statistical tools in the study. Moreover,
the survey found that the tested online shoppers utilize social media often, with Facebook being
the most popular. According to the survey, social media marketing has improved respondents'
online visibility, social media engagement, social media integration, social media activities, and
social media experience as e-commerce customers. The study also revealed that to increase
their social media audience, company owners must concentrate on the regularity and timing of
their posts. Lastly, based on the findings, the research suggested using the suggested
marketing methods.
The Impact of social media influencers’ purchase intention in the Philippines
Dalangin et al. (2021) focused on how customers view advertising. For an influencer to
succeed on social media, particular methods, and abilities must be tailored to appeal to
customers' purchase intentions. The study focused on products that are endorsed either on
YouTube or Instagram by influencers. The researcher used a quantitative-descriptive design in
analyzing the effectiveness of each collected data. The study was conducted in Metro Manila
because of the number of populations, resulting in a higher possibility of selecting respondents.
The "social media influencer questionnaire" created by Xin Jean Lim was used in the study. It is
a structured survey created to evaluate and examine the efficacy of social media figures who
affect consumers' intentions to buy. The study uses a 5-point Likert scale to measure
respondents’ demographic profile and advertising effectiveness, which will be evaluated based
on validated measurements.
Moreover, the study used 200 respondents from NCR, Manila with 129 female
participants, 71 male participants, and mostly from 18 to 24 years old. The evaluation found that
a trusted influencer who upholds the majority of their integrity can alter consumers' behavior and
purchase intentions. Attractiveness and connections to the product are viewed as being suitable
as well. Also, it was suggested that there is a positive and accepting attitude regarding the
various advertising efficacy of an influencer for customers' purchasing intentions. Additionally, a
significant relationship exists between customer purchase intent and advertising efficacy. Lastly,
it was revealed that women use the internet more frequently than men and have a higher
opinion of social media influencers.
Filipino Consumers' Decision-Making Model in Social Commerce
According to Catedrilla (2017), the role of social interaction in social commerce has
already been established in earlier research using various social commerce sites. However, due
to the concepts' lack of clarity and applicability, the relationship between social interaction and
consumer intention and behavior has yet to be examined and studied in Philippine settings. With
this, the researcher aimed to investigate Filipino consumers' social interactions by
conceptualizing the word-of-mouth (WOM) communication structures, monitoring other
consumers' purchases, and analyzing their effects on the intention to purchase actual purchase
and post-purchase behavior will help us understand how this will change people's online
shopping behavior.
Furthermore, the study gathered 125 responses from online respondents, wherein
showed that positive WOM and other observations were made. The study used a quantitative
research method to collect data from them. The respondents were collected from General
Santos City and South Cotabato province who had previous experiences in dealing with social
commerce using Facebook storefronts/brand pages. They used a questionnaire as the major
instrument used by the researcher to gather and collect the needed data to understand
consumers' social interaction and past purchase behaviors, using a five-point Likert scale. The
purchase intention questions consisted of two items: whether a product was purchased on a
preferred social commerce site and whether it was shared with other members. The study
revealed that consumers’ purchase decisions are influenced by their observation and learning
through other consumer behaviors, which opens up the possibility of actual purchases and the
ability to share product details with peers on social commerce platforms.
CHAPTER 3
RESEARCH METHODOLOGY AND PROCEDURES
This chapter accommodates the research design, the study's respondents, the
instruments to be used in data gathering, and data collection procedures.
Research Design
The researcher designed this qualitative study using semi-structured interviews as the
primary data collection method, with the goal of capturing the use of business owners’ social
media experiences. This study adopted a descriptive type of research. Moreover, the
researchers targeted 20 business owners residing in the town of Agno, Philippines as the
respondents of the study. The interviews will be conducted with a diverse sample of business
owners who actively use social media platforms for their businesses. The data collected will be
analyzed using thematic analysis to identify common themes and patterns. It is an empirical
inquiry that investigates a phenomenon in depth in order to understand the underlying patterns
and causes (Yin, 2009).
Respondents of the Study
The business owners from Agno, Pangasinan, served as the main respondents of the
study. The critical case purposive sampling method was used to pick schools that fit the criteria
and were accessible to the researchers. Purposive sampling was also used to determine who
would offer the best information to help the aims research succeed.
Adolph Jenson (2012) defines "purposive selection" as "the method of selecting a
number of groups of units in such a way that selected groups together yield as nearly as
possible the same average or proportion as the totality with respect to those characteristics
which are already a matter of statistical knowledge."
Locale of the Study
The study was conducted at Agno Pangasinan; it is where the researchers and
respondents were assigned. The town was chosen as the research locale because it was
accessible and convenient for both the respondents and researchers. Furthermore, the location
allows the researchers to have easier access to needed resources.
Agno, officially the Municipality of Agno, is a 3rd class municipality in the province of
Pangasinan, Philippines. According to the 2020 census, it has a population of 29,947 people.
Research Instrument
The researchers will conduct interviews as their research instrument. Interviews will be
conducted in English or in Tagalog with the assistance of a translator. Whenever possible,
interviews will be conducted one-on-one in a private setting. The researchers will use the
research questions as a guide to gather data from the respondents. The research will also use
voice recorders for the answers as evidence. The study was conducted in different barangay in
Agno Pangasinan, where the researchers and respondents were assigned. The municipality of
Agno was chosen as the research location because it was easily accessible and convenient for
both respondents and researchers. Furthermore, the location provides the researchers with
easy access to necessary resources.
Data Gathering Procedure
The study’s goal was to determine the influence of social media on business owners,
explore the opportunities and challenges it presents, and investigate the strategies employed by
business owners to navigate this dynamic digital landscape. The researchers will ask
permission from the principal for the approval of this study. The interview questions were
submitted to the validator for validation before the researchers conducted the study. The
researchers will also obtain oral informed consent from interviewees after explaining the
purpose of the interviews and how the material would be used. Once all necessary approvals
are official, the researchers started the distribution of the research instrument. The researchers
will conduct a face-to-face interview with the respondents. The information gathered during the
data collection period will be analyzed and interpreted.
The following research ethics were observed by the researchers: voluntary participation,
withdrawal rights, and confidentiality. Participation in this study was entirely voluntary, and
responders who choose to withdraw will be accommodated by the researchers at any time,
including during the study. The participants and their responses were kept secure and private.
To ensure the safety of the participants, the researchers followed research ethics.
Data Analysis
When the participants finished being interviewed, the interviews were transcribed, and
the data were analyzed using thematic analysis. The researchers use thematic analysis to
examine how these constructions might reflect the ‘reality’ of participants’ lived experiences, the
material or social contexts in which they live, and which constrain and enable their opportunities
for civic participation. Using thematic analysis, the words or phrases in the interviews and
surveys that emerged consistently were considered themes (Vaismoradi & Snelgrove, 2019).
INTERVIEW QUESTIONS
1. Have you ever posted about your products or services on social media?
2. What are the products and services do you offer?
3. What is the purpose of using social media in your business?
4. What kind of business prioritize social media marketing?
5. How many social media accounts do you need for your business? What social media
platform do you use often?
6. Does the visual aesthetic of the product help the customers decide what to buy? If yes,
Why?
7. What is the best way to attract customers on social media?
8. How social media helps you in your business?
9. How social media affected customer loyalty and purchase decisions?
10. Have you observed any changes in your customer base on sales as a result of your social
media activities?
11. How did you boost your page on social media?
12. Are you using paid advertising on social media, and if so, is it effective? In what way?
13. How can you manage your public image and reputation online as a business owner?
14. What are the most important factors in making social media marketing effective?
15. What challenges have you faced in using social media for your business? How have you
addressed them in your business strategy?
