Can social networking provide a realistic and rewarding form of CRM?: Profiling the use of social shopping communities in the fashion sector

Authors: Budnarowska, C. and Marciniak, R.

Conference: 17th International Conference on Recent Advances in Retailing and Services Science (EIRASS)

Dates: 2-5 July 2010

Abstract:

The fashion sector, alongside other retail sectors, has begun to adopt marketing initiatives that employ the use of new media channels, such as online social networking and community portals, to promote brands and retailers. This study sought to investigate the longevity in the fashion sector investing in new media channels as a credible form of CRM, and whether this can facilitate and nurture customer relationships. In all, the study sought to ascertain the extent to which fashion companies are responding to competitive pressure (Daniel & Wilson, 2002) to adopt the use of social networking sites such as Twitter, Facebook, Bebo & MySpace. Page (2008) explored the marketing activities facilitated by Web 2.0 and concluded that they are entrenched by social networking. These technologies are now established within businesses’ e-marketing activities, but with what success rate? It could be argued that retail businesses have struggled with the loss of the face-to-face customer relationship when adopting a ‘clicks’ retail strategy, so the study looked at whether social networking can go some way to replacing this personalization. Tufekci (2008) highlights the divide in Internet usage between social (expressive) and non-social (instrumental). Page (2008) claims that social networking has provided individuals with the opportunity to create an ‘online social identity’, but the study asked the question as to whether retail businesses can credibly brand themselves via this medium and, ultimately, whether this has the potential to generate a ROI. Therefore, to summarise the objectives of the study, it sought to explore Collier’s (2009) statement that, “it’s not what tool you use, but also how, why & when to use it”. The empirical study was based upon a series of in-depth interviews with managers in a number of retail organisations operating within the UK. Common to all the organisations was that, at the time of the interview, they were currently, or had recently, embarked upon the use of social networking as a form of brand marketing.

Source: Manual

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