INVESTIGATE ON THE EFFECTS OF SOCIAL MEDIA ON E ...ace18.nilai.edu.my/images/UploadFiles/Paper20.pdf · should place on information on social media. • This paper examines the influence

INVESTIGATE ON THE EFFECTS OF

SOCIAL MEDIA ON E-

ENTREPRENEURSHIP

ASIAN CONFERENCE ON ENTREPRENEURSHIP

(ACE 2018)

March 22-23, 2018Nilai Springs Resort Hotel

Nilai, Malaysia

ABSTRACT

• Social media sites continue to grow in popularity. They offer aplatform for entrepreneurship practices; however it is important tounderstand how much trust and confidence entrepreneursshould place on information on social media.

• This paper examines the influence of social media, particularlyFacebook, Instagram and Twitter, on e-entrepreneurship bytesting for correlations between recommendations on socialmedia and consumption patterns of consumers.

• This was carried out by determining the effect of social media onmarket access, customer relationship management,innovativeness and pricing of products.

• The study used descriptive research design in which, clustersampling is used to divide the population of interest and thensimple random probability sampling technique to further identifythe specific e-entrepreneurship to be used for the study.

22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP

(ACE 2018)2

INTRODUCTION

• Social media sites continue to grow in popularity. They have become

new e-commerce platforms for entrepreneurship practices. The

emergence of the Internet has caused a switch from the traditional

market to market space available online.

• E-entrepreneurship can be defined as establishing a new company

with an innovative business idea using an electronic platform in data

networks, which offers its products and/or services based on a purely

electronic creation of value (Kollmann, 2006).

• Social media provides an avenue for enterprises to reach target

customers and generate new ideas for starting a business.


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INTRODUCTION

• It provides an immediate source of information about current market

needs, product improvements and demand on new products.

• It also influences e-entrepreneurs with the right content that helps

them to make informed decisions as well as to gain access to

resources that might otherwise not be available.


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MARKET ACCESS

• It is a process that guarantees all customers will get

quick and continued access to the product at the

right price.

• New approach, an entrepreneur should research

information on new markets in order for his product

or services to reach the intended customers.

Evidence from literature has confirmed that social

media can be employed to access new markets

and it has significantly expanded the global reach

of networking


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CUSTOMER RELATIONSHIP MANAGEMENT(CRM)

• Enterprise approach to realize customer behaviorthrough significant interactions with customer, toimprove customer acquisition, customer retention,customer loyalty and customer profitability.

• Social CRM emerges which recognizes theimportance of CRM and social media applications.Social CRM enhances e-entrepreneurship byengaging their enterprises with their customers usingsocial media services, techniques and technologiesto generate, integrate and respond to customers’information and queries


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INNOVATIVENESS

• New ideas and opportunities are common

characteristics for innovation and entrepreneurship,

interaction between entrepreneurship and

innovation is necessary to sustain long term

entrepreneurial success.

• Services and products are designed based on

word-of-mouth and social-media-based

conversations


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PRICING OF PRODUCTS

• Pricing of product or services determines its success

as it is directly linked to revenues. In most situations,

an enterprise needs to price and re-price its

products and services to become competitively

advantageous and e-entrepreneurship is not

exceptional.

• Social media may have an impact on pricing

decision in e- entrepreneurship. One of the keys to

having a successful online business is brand name

recognition.


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RESEARCH MODEL

H1

H2

H3

H4


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Social

Media

Market

Access

Customer

Relation

Pricing of

Product

Innovation

HYPOTHESIS DEVELOPMENT

• H1 : Social media use is a positive related to market

access

• H2: Social media use is a positive related to

customer relationship management

• H3: Social media use is a positive related to

innovativeness

• H4: Social media use is a positive related to pricing

of products


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METHODOLOGY

• Survey items were developed and all items were

measured with a 5-point Likert scale In total, data

from 93 participants was collected.

• The target individuals were members of social

networking sites such as Facebook, Instagram and

Twitter.


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RESULTS – MARKET ACCESS


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Q No Questions Mean Standard

Deviation

Q1 On average, how often do you check your

social media account?

4.06 0.998

Q2 How often do you shop at the stores you follow

on social media?

2.66 1.093

Q3 How often do you receive correspondence

from the companies you follow on social

media?

2.90 1.137

Q4 How often do you shop online? 2.88 1.199

Average of Customer relationship management 3.125 1.107

MARKET ACCESS

• Frequency description of market access


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0

5

10

15

20

25

30

35

40

45

Q1 Q2 Q3 Q4

Strongly disagree

Disagree

Neutral

Agree

Strongly Agree

CUSTOMER RELATIONSHIP MANAGEMENT


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Q No Questions Mean Standard Deviation

Q1 I am more likely to share my online shopping experience with others

via social media

2.44 1.118

Q2 I am more likely to recommend the product, service or company

since becoming a follower of social media

2.72 1.158

Q3 I like to take part in product communities discussions on social media 2.36 1.163

Q4 Social media is the main resource which made me aware of the

product

3.59 1.130

Q5 I believe the quality of customer services is higher when company

embrace social media into its business

3.56 0.887

Q6 I am pleased to establish a relationship with my interested e-

commerce company through the use of social media

3.31 1.027

Q7 The company you work with places a high priority on retaining

customers

3.43 1.042

Q8 The company you work with considers customers as valuable assets 3.68 1.055

Q9 I have a more effective relationship with e-commerce company

because of the use of social media technologies

3.19 1.157

Q10 E-commerce companies who are well known in social media are

credible

3.45 0.854

Average of Customer relationship management 3.173 1.059

FREQUENCY DESCRIPTION OF

CUSTOMER RELATIONSHIP

MANAGEMENT


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0

5

10

15

20

25

30

35

40

45

50

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10

Strongly disagree

Disagree

Neutral

Agree

Strongly Agree

INNOVATIVENESS


Deviation

Q1 When a non-routine situation arises, I am using

social media as new ways of dealing with the

situation

3.44 1.032

Q2 I use social media to get new ideas and

approaches to solve problems

3.61 0.944

Q3 Social media provides new ideas,

requirements, and product improvement

3.71 0.916

Q4 Sharing ideas in social media and learn from

others is an added advantage and best

practices

3.70 0.976

Q5 Learn from early experiences and develop

corporate knowledge and expertise in social

media, are good tools and techniques

3.79 0.859

Average of Innovativeness 3.65 0.945


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FREQUENCY DESCRIPTION OF

INNOVATIVENESS


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0

5

10

15

20

25

30

35

40

45

Q1 Q2 Q3 Q4 Q5

Strongly disagree

Disagree

Neutral

Agree

Strongly Agree

PRICING OF PRODUCTS


Deviation

Q1 The company you work with, utilise social

media to conduct research on product

pricing

3.10 1.133

Q2 The company you work with, use social media

to gather information about your product

3.26 1.197


media to detect shifts in industries

3.13 1.141


media to make purchase decisions based on

price

2.99 1.147

Q5 It is a big difference to compare the price of

social media and traditional shopping

3.45 1.058

Average of pricing of products 3.186 1.135


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FREQUENCY DESCRIPTION OF PRICING

OF PRODUCTS


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0

5

10

15

20

25

30

35

40

Q1 Q2 Q3 Q4 Q5

Strongly disagree

Disagree

Neutral

Agree

Strongly Agree

FINDINGS


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• Correlation test for all constructs (Market Price,

Customer Relationship Management (CRM),

Innovativeness and Product pricing) shows a

positive correlation.

• Pricing of products and Innovativeness show a very

high correlation average of 0.671 and 0.683

respectively

• Market price and CRM show a moderate

correlation average of 0.420 and 0.448 respectively

CORRELATION TEST RESULT OF

INNOVATIVENESS


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Table 12. Correlation Test Result of Innovativeness

Q1 Q2 Q3 Q4 Q5

When a non-routine situation

arises, I am using social media

as new ways of dealing with

the situation

Pearson Correlation 1 .743** .684** .582** .641**

Sig. (2-tailed) .000 .000 .000 .000

N 94 93 93 93 92

I use social media to get new

ideas and approaches to solve

problems

Pearson Correlation .743** 1 .711** .580** .642**

Sig. (2-tailed) .000 .000 .000 .000

N 93 93 93 93 92

Social media provides new

ideas, requirements, and

product improvement

Pearson Correlation .684** .711** 1 .741** .757**

Sig. (2-tailed) .000 .000 .000 .000

N 93 93 93 93 92

Sharing ideas in social media

and learn from others is an

added advantage and best

practices

Pearson Correlation .582** .580** .741** 1 .751**

Sig. (2-tailed) .000 .000 .000 .000

N 93 93 93 93 92

Learn from early experiences

and develop corporate

knowledge and expertise in

social media, are good tools

and techniques

Pearson Correlation .641** .642** .757** .751** 1

Sig. (2-tailed) .000 .000 .000 .000

N 92 92 92 92 92

**. Correlation is significant at the 0.01 level (2-tailed).

CORRELATION TEST RESULT OF

PRICING OF PRODUCTS


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Table 13. Correlation Test Result of pricing of products

Q1 Q2 Q3 Q4 Q5

The company you work with,

utilise social media to conduct

research on product pricing

Pearson Correlation 1 .815** .720** .737** .489**

Sig. (2-tailed) .000 .000 .000 .000

N 93 93 92 93 93


use social media to gather

information about your product

Pearson Correlation .815** 1 .811** .762** .585**

Sig. (2-tailed) .000 .000 .000 .000

N 93 93 92 93 93


utilise social media to detect

shifts in industries

Pearson Correlation .720** .811** 1 .747** .467**

Sig. (2-tailed) .000 .000 .000 .000

N 92 92 92 92 92


utilise social media to make

purchase decisions based on

price

Pearson Correlation .737** .762** .747** 1 .577**

Sig. (2-tailed) .000 .000 .000 .000

N 93 93 92 93 93

It is a big difference to

compare the price of social

media and traditional shopping

Pearson Correlation .489** .585** .467** .577** 1

Sig. (2-tailed) .000 .000 .000 .000

N 93 93 92 93 93

**. Correlation is significant at the 0.01 level (2-tailed).

HYPOTHESIS TEST RESULTS


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Hypotheses Supported /

Accepted?

Reason

H1: Social media use is a positive related to

market access

Supported Positive related and significant


customer relationship management

Supported Positive related and significant


innovativeness

Highly

Accepted

Positive related and significant


pricing of products

Highly

Accepted

Positive related and significant

CONCLUSIONS & RECOMMENDATIONS

• Social media on e-entrepreneurship, it is importantto consider the effects of social media on thefollowing constructs: market access, customerrelationship management, innovativeness andpricing of products.

• Social media has a positive impact on marketaccess. E-entrepreneurship companies can usesocial media to reach customers. The results of thisstudy indicate that social media can be used aspromotion tool to make their market accessbecome wider and wider


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• Social media is positively related with the construct of customer relationship management.

• It indicates if e-entrepreneurship companies use more social media forms, the customer relationship management will be better and increase.

• Involving more social media applications into e-entrepreneurship customer relationship management have so many positive effects, which is in line with our expectation.


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• Performance dimension of social media has a

significant influence on innovativeness. The results of

this study indicate that there is a link between e-

entrepreneurship companies and social media.

• Relationship of the social media on pricing of

products, the research results show a very positive

related and significant.


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• Social media usage makes it easier for e-

entrepreneur to implement the right strategy from

the beginning, so that they can appreciate the

benefits that social media can provide to their

business.

• E-entrepreneurs should be aware of the numerous

advantages of using social media regardless of the

phase in which the business lies.


(ACE 2018)27

Documents

INVESTIGATE ON THE EFFECTS OF SOCIAL MEDIA ON E ...ace18.nilai.edu.my/images/UploadFiles/Paper20.pdf · should place on information on social media. • This paper examines the influence